HomeMy WebLinkAbout06-04-2019 Item 14 - Adoption of 2019-20 Financial Plan and BudgetCity of San Luis Obispo, Council Memorandum
Council Agenda Correspondence
DATE: May 22, 2019
TO: City Council
FROM: Brigitte Elke, Finance Director
Teresa Purrington, City Clerk
VIA: Derek Johnson, City Manager DJ
SUBJECT: 2019-21 Preliminary Financial Plan
It is our pleasure to present the 2019-21 Preliminary Financial Plan agenda packet to you which
contains the staff report for the review of the preliminary financial plan (Public Hearing Item 1)
and the review of all four enterprise funds (Public Hearing Items 2 through 5). These reports are
provided to you in advance of the regular June 4, 2019, agenda packet in order to allow for
additional review time to you and the public.
Public Hearing Item 1 includes Addendum A to insert part of the Strategic Priorities section which
was omitted during the printing process of the agenda packet.
Please note that the remainder of the packet, including all consent agenda items, will be published
on May 29, 2019. Please reach out directly to Brigitte Elke or Teressa Purrington with any
questions.
Department Name: Finance
Cost Center: 2006
For Agenda of: June 4, 2019
Placement: Public Hearing
Estimated Time: 120 Minutes
FROM: Derek Johnson, City Manager
Prepared By: Brigitte Elke, Finance Director
SUBJECT: ADOPTION OF 2019-21 FINANCIAL PLAN
RECOMMENDATION
1.Adopt a Resolution (Attachment A) approving the 2019-21 Financial Plan; and
2.Defer budget adoption of the Water and Sewer Funds until June 18, 2019.
DISCUSSION
After extensive community participation and several Council budget workshops and hearings
beginning in November 2018, the 2019-21 Financial Plan is ready for adoption. Key features of the
upcoming two-year Financial Plan include:
1.Focus on long-term fiscal health, aligned with Fiscal and Budget Policies, Financial Responsibility
and Sustainability Philosophy, and Fiscal Health Contingency Plan.
2.Alignment with Council adopted Major City Goals and Other Important Objectives.
3.Ensures that the fund balance and working capital policy requirements are met.
4.Invests in the future by funding maintenance of existing infrastructure and invests in the capital
improvement program.
5.Addresses current required payments to unfunded liabilities.
6.Honors and implements Local Revenue Measure priorities.
Packet Page 1
The 2019-21 Financial Plan includes city-wide fiscal allocations for the two-year period in the
amounts as summarized below:
Expenditures 2019-20 2020-21 % Change
General Fund $75,550 $75,412 -0.2%
Business Activities
Water Fund $33,110 $32,849 -0.8%
Sewer Fund $60,387 $38,045 -37%
Parking Fund $ 5,376 $34,001 632%1
Transit Fund $ 4,172 $ 4,239 2%
Special Revenue
Tourism Assessment $
1,533
$ 1,552 1%
Downtown Assessment $ 260 $ 260
Total $180,388 $186,358 3%
Changes to the Preliminary Financial Plan
In preparing for the adoption of the Financial Plan, the City Council held a Strategic Budget
Direction workshop at the April 16, 2019 City Council meeting. During that workshop, the City
Council provided direction to make changes to the Prelimi nary Financial Plan as displayed in
the Exhibit 1 to the Resolution (Attachment A). These changes are made possible the by addition
of funds to the budget from SB-2 (Building Homes and Jobs Act) for tasks in the Housing Major
City Goal workplan which allows for the previously allocated dollars to support other tasks.
Task Major City Goal Amount
Downtown Zoning Update Housing $100,000
Childcare Study Fiscal Sustainability and
Responsibility
$20,000
Human Relations
Commission Diversity
Initiative
Fiscal Sustainability and
Responsibility
$20,000
Climate Coalition Support Climate Action $10,000
Sustainability Capacity
Building
Climate Action $10,000
Total $160,000
It is important to note that proposed Department appropriations do not include Program
Enhancements as shown in “Budget Enhancements” section of the budget document. The Final
Budget document will reflect these appropriations and any other amendments as determined by
the City Council.
1 Includes the construction of the Palm/Nipomo parking structure.
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Pedicabs
The Council received input on April 16, 2019 and the consensus of Council was to include a
reduction in the costs to review pedicab applications. Staff recommends a 50% reduction based
on the finding that the pedicabs will help enhance the Downtown experience and provide the
opportunity for persons to use alternative transportation in the Downtown. The proposed fee of
$229.50 would be reduced to $114.75.
Final Documents
After Council adoption of the 2019-21 Financial Plan, a copy of the Adopted 2019-21 Financial
Plan will be posted on-line.
Additionally, staff will prepare a Budget-in-Brief that highlights the City's budget process,
key budget features, major City goals and basic “budget facts.” This budget summary is
widely distributed and will be posted on the website and shared through the various
communication channels.
Ongoing Monitoring
Adoption of the Financial Plan is the beginning of a continuous financial management
process. Ongoing monitoring efforts include:
1.Interim Financial Reports. On-line access to up-to-date financial information is provided to
staff throughout the organization. Additionally, financial reports are prepared monthly to
monitor the City’s fiscal condition, and a concise but comprehensive report is issued on a
quarterly basis. These are complemented by special reports such as the quarterly Sales Tax
Newsletter, Monthly TOT Report and Quarterly Investment Report.
2.Goal Status Reports. Formal reports are provided to the Council on status of Major City
Goals and major Capital Improvement Plan projects at specific intervals during the year: with
the Mid-Year Budget Review and again in September of the second year of the Financial
Plan. These reports are prepared in addition to ongoing updates and communication about the
status of City projects and goals.
Policy Context
Although the City adopts a two-year Financial Plan, the budget (also known as appropriations) is
adopted annually under the process. Pursuant to Section 8042 of the City Charter, the City
Council must adopt the 2019-20 Budget by June 30, 2019 in order for appropriations to be in
place for the 2019-2020 fiscal year which begins on July 1. This is accomplished by Resolution
and a Budget Resolution is provided as Attachment A to this report.
A supplemental budget for the 2020-21 fiscal year will be prepared and Staff will return in June
2020 for budget appropriations and adoption.
2 Section 804. Adoption of the Budget.
After the conclusion of the public hearing the Council shall further consider the proposed budget and make any revisions thereof that it may deem
advisable and thereafter it shall adopt the budget with revisions, if any. Upon final adoption, the budget shall be in effect for the ensuing fiscal
year. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the
various departments or activities therein described. All appropriations shall lapse at the end of the fiscal year to t he extent that they shall not have
been expended or lawfully encumbered. At any meeting after the adoption of the budget, the Council may amend or supplement th e budget by
motion adopted by a majority vote of the Council.
Packet Page 3
Public Engagement
The City’s two-year Financial Plan process includes a high degree of public engagement and input
ranging from community surveys, outreach to community groups and organiza tion, a Community
Forum and several public hearings prior to adoption.
ENVIRONMENTAL REVIEW
Adoption of a budget is not a project as defined under the California Environmental Quality Act.
FISCAL IMPACT
Budgeted: Yes Budget Years: 2019-21
Funding Identified: Yes
Fiscal Analysis:
As outlined in detail in the Financial Plan, the City is appropriating $198 million in the 2019-20
fiscal year and budgeted $204 million in the 2020-21 fiscal year. Revenue and expenditures for all
Funds are balanced in this Financial Plan.
Attachments:
a - Resolution Approving the 2019-21 Financial Plan and 2019-20 Budget
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R _______
RESOLUTION NO. (2019 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA APPROVING THE 2019-21 FINANCIAL PLAN AND 2019-20 BUDGET
WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City Manager
has submitted the 2019-21 Financial Plan (Exhibit 1) to the Council for its review and
consideration consistent with budget policies and objectives established by the Council; and
WHEREAS, the 2019-21 Financial Plan is based upon extensive public comment and
direction of the Council after scheduled budget workshops and public hearings; and
WHEREAS, the 2019-21 Financial Plan – 2019-20 Budget includes the City’s
appropriation limit according to California Constitution Article XIIIB.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The 2019-21 Financial Plan is hereby approved and that the operating, debt
service, and capital improvement plan budget for the fiscal year beginning July 1, 2019 and ending
June 30, 2020 is hereby adopted.
SECTION 2. The City Manager is hereby delegated authority to allocate funds from
assigned fund balances where assignment of funds for an intended use was previously approved
by the Council.
SECTION 3. The City Council approves the appropriation limit as set forth on page XX
of the 2019-21 Financial Plan – 2019-20 Budget.
Packet Page 5Packet Page 5
R _________
SECTION 4. The City’s adopted fee schedule is adjusted by 3.3% which reflects the All
Urban Consumer Price Index, Los Angeles area –based on the change from April 2018-April 2019
and the Council hereby establishes a pedicab fee that is 50% of the published fee for all other taxi
applications and is set at $114.75 for the 2019-2020 Fiscal Year.
On motion of ___________________, seconded by _______________________, and on
the following vote:
AYES:
NOTE:
ABSENT:
The foregoing Resolution was passed and adopted on ___________, 2019.
______________________________
Mayor Heidi Harmon
ATTEST:
Teresa Purrington,
City Clerk
APPROVED:
Christine Dietrick,
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
Packet Page 6
CITY OF SAN LUIS OBISPO
2019-20 Adopted Budget
2019-21
Financial Plan
1 Packet Page 7
Table of Contents
Financial Plan Reader’s Guide 3
Budget Message from City Manager 4
City Profile 7
City Council 8
Community Overview 9
City at a Glance 10
City Services Highlights 11
Organizational Chart 12
Organizational Values 13
Financial Planning Process 14
Budget Process 15
Public Engagement 16
Financial Plan Framework 17
Budget Policies 18
Financial Plan Purpose and
Organization 19
Long Term Financial Planning
Financial Reporting and
Budget Administration
Strategic Priorities 20
Financial Plan Overview 66
Budget at a Glance 67
Where the Money Comes From 68
What the Money is Spent On 70
Local Revenue Measure 75
Debt 89
Consolidated Financials 93
General Fund Forecast 94
Total Funding Sources 95
All Expenditures Combined 96
Operating Budget 97
Fee Revenues 98
Operating Expenditures 101
Employee Summary 104
Program Enhancement 107
Administration 110
Council 115
City Attorney 126
Community Development 131
Finance 140
Fire 150
Human Resources 162
Parks & Recreation 169
Police 180
Public Works 190
Business Activities /Special Revenue 205
Utilities 206
Water Fund 212
Long-Term Forecast
Budget at a Glance
Debt Service
Employee Summary
Operating Programs
Capital Budget
Sewer Fund 228
Long-Term Forecast
Budget at a Glance
Debt Service
Employee Summary
Operating Programs
Capital Budget
Parking Fund 247
Budget at a Glance
Employee Summary
Operating Programs
Capital Budget
Debt Service
Transit Fund 261
Budget at a Glance
Employee Summary
Operating Programs
Capital Budget
Special Revenue 279
Downtown
Tourism Business Improvement District
Boysen
Capital Improvement Plan 278
Introduction
Summary Tables
Project Details
Reference Material 416
Resolution – To be inserted after adoption
Pension Obligation Trends 417
Appropriation Limit 421
Fiscal Policies 422
Basis of Accounting 452
Budget Glossary 453
2 Packet Page 8
Financial Plan Reader’s Guide
The Financial Plan Reader’s Guide is intended to provide a
basic understanding of the 2019-21 Financial Plan and
describes the contents of each major section of this
document.
The document has been divided into the following
sections:
Introduction
For the 2019-21 Final Financial Plan, this section provides a
message from the City Manager that provides an
overview of the budget highlights as well as
accomplishments of the City.The messages also provides
the financial context for the City’s Financial Plan and
outlines some key initiatives and assumptions in the
plan.
Cit y Profile
This section introduces the Mayor and the four City
Council members and provides the reader with a brief
overview of the City of San Luis Obispo,its location,
population,interesting community information, as well as
highlights of the services available to citizens and
businesses.This section also includes the City of San
Luis Obispo’s organizational structure.
Strategic Priorities
This section provides the detailed road map for the Major
City goals, as well as other driving factors for the 2019-21
Financial Plan and the annual budget appropriation.
Public Input on Financial Planning Process
This section explains the City’s public and budget
development process.It also provides a summary of
survey responses and input from the Community Forum
that Council considers when developing its goals for the
upcoming Financial Plan.
Financial Plan Framework
This section provides policy and regulatory requirements
for the development of both the City’s operating and
capital budgets.Additionally,it provides an overview of the
planning framework used to develop the Financial Plan
including the timelines,monitoring and variance reporting
and evaluating performance.
This section also identifies the City’s financial fund
structure which is a combination of governmental and
business activities.It provides a description of each fund
and the funding sources,either from taxes,service,and
user fees.
Financial Plan Over view
This section provides the reader with the City’s approach
to budgeting and the key priorities that are taken into
consideration when developing the Financial Plan.These
priorities are from both external and internal sources.
Internal sources come directly from city policies, strategic
direction from Council and external sources consist of
economic factors and policies from outside government
agencies such as the Provincial and Federal governments.
The property tax and utility cost drivers are explained and
the community impacts to households and businesses are
shown in percentages as well as dollars over a five year
period.
Additionally,this section p rovides the analysis of the City’s
revenues by revenue type as well as expenditures by type
and function.Additionally, an understanding of the capital
budget is presented by category and strategic plan
objectives.Information on debt and reserve policy balances
are also explained.
Consolidated Financial Plan
This section provides the consolidated long-term financial
outlook that outlines the revenues, expenditures,capital
investments,debt obligations,and the City’s beginning
and ending fund balance for all funds.
Operating Budget
This section provides a summary of each Department’s
revenue and expenditure current budget compared to the
prior year as well as the employee summary.Further
departmental details provide a greater understanding
about department operations,key highlights,
organizational structure and financial line item summaries
for the current budget to prior year budgets,variances
between actuals and budget,including graphic
illustrations.Performance and workload metrics are also
included in this section.
Capital Budget
This section provides an overview of the five-year Capital
Plan including project summary details outlining the
overview of the project,the key deliverables and budget
line items as well as operating impacts.
Financial Plan Reader’s Guide
3 Packet Page 9
City Manager’s Budget Message
City Manager’s Budget Message
The San Luis Obispo
City Council has set
forth a bold and
innovative agenda
that embodies the
community’s vision
for the future.
Delivering on this
vision requires a
resourcing strategy
that is equally ambitious, yet firmly grounded in
the fundamentals of prudent financial
management and the economic realities facing
California cities today.
With this in mind, I am pleased to present a
proposed budget of almost $399 million for the
City of San Luis Obispo’s 2019-21 Financial Plan.
The spending plan detailed on the following
pages builds on a trajectory of positive and
transformative change. Our physical
surroundings are changing with the
implementation of projects that reinforce the
City’s culture and identity. New housing and
capital projects are changing the way we move
around the community. The Motion project
represents a new way of managing the City’s
budget and finances, integrating formerly
disparate systems to maximize resources. The
City workforce is changing as new generations
bring different ways of doing business and
innovative approaches to the challenges of the
day.
In the past year alone, the City has produced
impressive results, including:
• Advancement of the San Luis and Avila
Ranch Projects
• Establishment of a 2035 carbon neutral
target
• Joining Monterey Bay Community Power
Community Choice Energy
• Update of the Development Impact Fee
Program
• Update of the City’s Zoning Ordinance
• Purchase of the 266-acre Miossi Open
Space
• Adoption of Fiscal Health Response Plan
• Passage of Senate Bill 1090
Fiscal Health
The 2019-21 Financial Plan presented on the
following pages build on these accomplishments
and are based on the policies and principles of
the City’s Fiscal Health Response Plan:
• Delivery of high-quality core city services
that support an excellent quality of life
for our residents and respond to state,
regional, and local needs and trends.
• Focused attention on the goal of Fiscal
Sustainability and Responsibility, an
overarching theme that supports
ongoing progress in other Major Goal
Areas, including Housing, Sustainable
Transportation, Climate Action and
Downtown Vitality.
• A $32 million paydown of city pension
costs that will enable the city to avoid
$19 million in interest payments.
• Creation of a General Fund Revenue
Stabilization Fund of $1 million to offset
any unanticipated fluctuations in
general fund revenues.
• A thoughtful and forward-looking
approach to the maintenance of City
roads, water system, parks, facilities and
other infrastructure to ensure these
valuable assets are protected.
• Investment of $13.8 million by Fiscal
year 2024 in a 115 Trust, a special fund
that protects the city against pension
rate fluctuations and enables the city to
earn higher returns on funds dedicated
to pension contributions. Combined
these measures will allow the city to
meet its pension funding goal in less
than 20 years.
4 Packet Page 10
City Manager’s Budget Message
Upcoming Work on Major City Goals
Careful adherence to the Fiscal Health Response
Plan enables the City to have the resources
needed to continue progress on Major City
Goals. Some of the highlights include:
Housing: Begin the update of the city’s Housing
Element, including an emphasis on affordable
housing and support for those currently
unhoused. The update of this policy document
comes at a time of building tension between
state and local control of housing. The entire
community has a stake in the outcome of this
planning process, making meaningful public
dialog a critical component of the work plan.
Sustainable Transportation: A series of capital
projects are proposed that focus on
maintenance and new construction to enable
people to get around safely and efficiently,
whether by foot, on a bike or in a car. In addition
to efforts to increase transit ridership, the city is
researching the use of electric vehicles for
potential replacement of aging transit sources.
Additionally, the City will renegotiate key terms
with Cal Poly for transit services in support of the
university’s ambitious plans to build new
housing on campus and reduce auto
dependency.
Beginning construction on the Prado Road
Interchange and Prado Creek Bridge, and
completion of Phase 1 and 2 of the Anholm
Neighborhood Greenway are also included in
this work plan.
Climate Action: Prepare for the growing impacts
of climate change so the City can adapt, become
more resilient and thrive in a rapidly changing
climate. The work plan operationalizes the City’s
vision to ensure the community remains a
dynamic, high quality place to live and work,
while protecting and stewarding our natural
environment.
Downtown Vitality: The plan addresses the needs
of local businesses and includes strategies to
help them prosper. Partnerships with Downtown
SLO, our City’s business improvement
association and Tourism Business Improvement
District are a key element of the plan, as is
ongoing collaboration with cultural and
business-centric nonprofit organizations. The
plan includes an update to the City’s Economic
Development Strategic Plan and the potential
creation of new programs that support
downtown properties. Public improvement
projects will replace sidewalks, and the new
parking structure at the corner of Palm/Nipomo
is scheduled to break ground in October 2020.
Fiscal Sustainability and Responsibility: An
overarching goal that helps enable all other city
goals is ensuring the City’s long-term financial
stability. The work plan includes economic
development efforts to increase revenues and
additional thoughtful reorganizations to increase
operational efficiencies that will best prepare
the organization for the future. The City will
continue to pursue best management practices
for cost containment and improved budgeting
within the city organization, identify long term
capital investments, ensure the city is prepared
for emergencies, and support organizational
effectiveness at all levels.
New Programs, Services
To support the City’s goals for long-term
financial health, the City’s Financial Plan Steering
Committee evaluated all new spending requests
above $7,500 according to the following criteria:
A. Essential for the protection of health and
safety.
B. Needed for the advancement of Major
City Goals
C. Allowing for future cost reductions
through reorganizations
5 Packet Page 11
City Manager’s Budget Message
Some of the approved areas of new spending
include:
• A carbon farming pilot program
• Transportation electrification strategic
plan
• New “shop local” program
• Urban forest master plan
• Downtown law enforcement and public
safety
• Business attraction and retention
program
• Building electrification program
• Housing diversity and inclusion program
• Increased community outreach
Long-Term Outlook
The latest financial forecast validates the
direction set forth in the City’s Financial Health
Response Plan. That is, by actively managing the
City’s unfunded pension liabilities, revamping
business practices and a taking a very focused
approach to spending, we can achieve a
balanced City budget through the current five-
year forecast, ending in Fiscal Year 23-24.
This would not be possible without City Council
leadership, community support and City
employees who are committed to doing business
differently and sharing in the cost of the city’s
pension obligations.
Conclusion
I would like to thank the entire City team who
worked to create this budget and Financial Plan.
By proceeding cautiously with a shared vision for
the future, the City of San Luis Obispo is well
positioned to deliver the kind of resilient,
dynamic and sustainable City we all want to be.
Derek Johnson
City Manager
6 Packet Page 12
CITY PROFILE
7 Packet Page 13
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blank.
Packet Page 14
The City of San Luis Obispo is a charter city and operates under the "Council-Mayor-City Manager"form of
municipal government.The five-member City Council consist of the directly-elected Mayor and four City
Council Members.The Mayor is elected to a two-year term and Council Members are elected to four-year
terms.
The City Council is the legislative authority and sets the policies under which the City operates.The City
Council has the power to adopt ordinances and resolutions,make appointments to the City's advisory
bodies,establish policies and approve programs,appropriate funds,adopt budgets,and approve contracts.
The Mayor presides at all meetings of the City Council and is recognized as the official head of the City for
all ceremonial purposes.
CITY P ROFILE
City Council
2019–21 City Council Financial Plan Vision
The City of San Luis Obispo is a dynamic community embracing its future while
respecting its past with core values of civility, sustainability, diversity, inclusivity,
regionalism, partnership, and resiliency.
Andy Pease
Vice-Mayor
Carlyn Christianson
City Council
Aaron Gomez
City Council
Erica Stewart
City Council
Heidi Harmon
Mayor
8 Packet Page 15
Located mid-way between San Francisco and Los Angeles,San Luis Obispo is the County seat and a number of
federal and state regional offices and facilities are located here,including Cal Poly Sate University,Cuesta
Community College,the regional Water Quality Board,and Caltrans District Offices.The City’s ideal weather
and natural beauty provide numerous opportunities for outdoor recreation at nearby City and State Parks,
lakes,beaches, and wilderness areas.
Commmunity Overview
While San Luis Obispo grew relatively slowly
during most of the 19th century,the coming of the
Southern Pacific Railroad in 1894 opened up the
area to the rest of California.The City’s distance
from major metropolitan areas to the north (San
Francisco)and south (Los Angeles)have allowed it
to retain its historic and scenic qualities, which
contribute to the superb quality of life residents
enjoy and that attract visitors from all over the
world.In fact,in 2010,the City was dubbed the
“Happiest City in North America”by National
Geographic author Dan Buettner.
Another key feature contributing to the City’s
great quality of life is its delightful downtown.
The heart of which is the Mission Plaza.With its
wonderful creek side setting and beautifully
restored mission and parish church,Mission Plaza
is the community’s cultural and social center.
This historic plaza is complemented by a bustling
downtown offering great shopping,outdoor and
indoor dining, night life,and its famous Thursday
Night Farmers’Market,where you can buy locally
grown fresh produce an enjoy and outdoor BBQ.
This unique blend of history, culture,commerce,
and entertainment make San Luis Obispo’s
downtown one of the most attractive,interesting,
and economically vibrant downtowns in America.
San Luis Obispo is a full-service city that provides
police,fire,water,sewer, streets,transit,parking,
planning, building, engineering, and parks and
recreation service to the community.The City
operates under the Council-Mayor-City Manager
form of government.The City Council appoints
the City Manager and City Attorney.All other
department heads are appointed by the City
Manager.
CITY P ROFILE
9 Packet Page 16
60.9%
In the Labor Force
20,578
Total Housing
Units
46,548
Population
(largest city in SLO County)
$64,014
Median Household
Income
Source:City Comprehensive Annual Financial Report —2017–18
Incorporated in 1856 as
a General Law City and
became a Charter City in
1876.
68% 32%
Owned vs. Rented
Public Safety
Sworn Personnel
47 61.5
13.2
Square Miles
Water Supply
Salinas & Whale Rock: 4,910 AF*
Nacimiento:5,482 AF
Recycled Water: 238 AF
Total safe annual yield: 10,130 AF
*AF = acre feet
CITY P ROFILE
The City at a Glance
10 Packet Page 17
36
City Council Meetings Held
163
Fire Suppression Calls
35,670
Rounds of Golf
262
City Council Agenda
Reports
623
Building Permits
Issued
MAINTAIN
28CityParks 55 3,775Acres of Open SpaceTrail Mileage
197 Miles of Roadway
187 Miles ofWater Lines
143Miles of Sewer Lines
5,530Acre Feet of Water Consumed
41.2
Miles ofBike Lanes
2,871
Public Parking
Spaces
MAINTAIN
8,230
Business Licenses
Issued
681
Enforcement Cases Reported
25
Contacts with
Businesses to Locate
in San Luis Obispo215
Development Permit Applications
Received
City Services Highlights
134 paved street miles
20,000 Trees in the Urban Forest
945,288
Transit Passengers
130
Total Net Affordable
Housing Units Built
2018
33,106
Calls for Police Service
5,856
Calls for Fire Service
CITY P ROFILE
97,701
Annual
Aquatics
Attendance
11 Packet Page 18
Organizational Chart
THE COMMUNITY
Mayor &
City Council
Advisory
Bodies
City AttorneyCity Manager
Community
Services
Public Works
Utilities
Parks &
Recreation
Community
Development
Police Fire Administration
& IT Finance Human
Resources
CITY P ROFILE
12 Packet Page 19
Employee Development and
Recognition
Organizational Values
Shared Mission, Vision, & Goals
Service to the Community
Leadership & Support
Communication
Team Players
Honesty, Respect, & Trust
Initiative & Accountability
Innovation & Flexibility
Stewardship & Ethics
CITY P ROFILE
13 Packet Page 20
FINANCIAL PLANNING PROCESS
14 Packet Page 21
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Financial Planning Process
Budget Process
Two-Year Financial Plan Process
For over thirty years, the City has used a two-year financial planning process to create its budgets. The
benefits of budgeting based on a two-year plan include:
1. Reinforcing the importance of long-range planning in managing the City's fiscal affairs.
2. Concentrating on budgeting to accomplish significant objectives.
3. Establishing realistic timeframes for achieving objectives.
4. Creating a pro-active budget that provides for stable operations
and assures the City's long-term fiscal health.
5. Reducing the amount of time and resources allocated to
preparing annual budgets.
The fundamental purpose of the City’s budget process is to link, through
public engagement and strategic deliberation, the interest of the
community to the available financial resources to achieve the desired
outcome. The process allows the City Council to engage the community
in identifying Major City Goals for the City while also providing
information regarding the City’s core services, including the day-to-day work and responsibilities carried
out by City employees to support residents’ quality of life.
2019-21 Goal-Setting & Budget Process
There are a variety of possibilities to provide input to the City Council to enable them to establish Major
City Goals with the community’s interest in mind. These opportunities are highlighted on the following
chart:
Major City Goals represent
the most important, highest
priority goals for the City to
accomplish over the next two
years, and as such, resources
should be included in the
2019-21 Financial Plan.
15 Packet Page 23
Financial Planning Process
Public Engagement
Community Survey & Forum
Community Forum
A Financial Plan focused Community Forum
was held on January 28, 2019 at the
Veterans’ Hall in San Luis Obispo. 209
community members participated and placed
dots on the priorities and strategic goals for
the City to achieve. The participant voted for
the following strategic goals:
• Housing 146 dots
• Downtown Vitality 152 dots
• Multi-Modal Transp. 288 dots
• Climate Action 157 dots
• Fiscal Sustainability 37 dots
Local Revenue Measure Annual Citizen
Oversight Meeting & Advisory Body Input
The Forum is also intended to meet the
requirements regarding the City’s half-
percent local sales tax, by providing an
opportunity for the Revenue Enhancement
Oversight Committee (REOC) to “review and
discuss the use of the revenue generated by
the Local Revenue Measure.”
The priorities for 2019-21 contain 1) Open
Space Preservation, 2) Bicycle and
Pedestrian Improvements, 3) Traffic
Congestion Relief, 4) Public Safety, 5)
Neighborhood Street Paving, 6) Code
Enforcement, 7) Flood Protection, 8) Parks &
Recreation / Senior Programs and Facilities
and 9) Other Vital Services and Capital
Projects. Other committees and
commissions are also surveyed about their
priorities for the upcoming year.
Online Survey
A total of 1,548 online and hard copy survey
responses were received by January 16,
2019. It is worth noting that this reflects a
24% increase in participation compared to
the same survey conducted two years ago.
16 Packet Page 24
FINANCIAL PLAN FRAMEWORK
17 Packet Page 25
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Packet Page 26
Financial Plan Framework
Budget Policies
FINANCIAL PLAN PURPOSE AND
ORGANIZATION
A. Financial Plan Objectives. Through its Financial
Plan, the City will link resources with results by:
1. Identifying community needs for essential
services.
2. Organizing the programs required to provide
these essential services.
3. Establishing program policies and goals,
which define the nature and level of
program services required.
4. Identifying activities performed in delivering
program services.
5. Proposing objectives for improving the
delivery of program services.
6. Identifying and appropriating the resources
required to perform program activities and
accomplish program objectives.
7. Setting standards to measure and evaluate
the:
a. Output of program activities.
b. Accomplishment of program objectives.
c. Expenditure of program appropriations.
B. Two-Year Budget. Following the City's favorable
experience, the City will continue using a two-
year financial plan, emphasizing long-range
planning and effective program management.
The benefits identified when the City's first two-
year plan was prepared for 1983-85 continue to
be realized:
1. Reinforcing the importance of long-range
planning in managing the City's fiscal affairs.
2. Concentrating on developing and budgeting
for the accomplishment of significant
objectives.
3. Establishing realistic timeframes for
achieving objectives.
4. Creating a pro-active budget that provides
for stable operations and assures the City's
long-term fiscal health.
5. Promoting more orderly spending patterns.
6. Reducing the amount of time and resources
allocated to preparing annual budgets.
C. Measurable Objectives. The two-year financial
plan will establish measurable program
objectives and allow reasonable time to
accomplish those objectives.
D. Second Year Budget. Before the beginning of
the second year of the two-year cycle, the
Council will review progress during the first year
and approve appropriations for the second fiscal
year.
E. Operating Carryover. Operating program
appropriations not spent during the first fiscal
year may be carried over for specific purposes
into the second fiscal year with the approval of
the City Manager.
F. Goal Status Reports. The status of major
program objectives will be formally reported to
the Council on an ongoing, periodic basis.
G. Mid-Year Budget Reviews. The Council will
formally review the City’s fiscal condition, and
amend appropriations if necessary, six months
after the beginning of each fiscal year.
18 Packet Page 27
Financial Plan Framework
LONG - TERM FINANCIAL PLANNING
A. Balanced Budget. The City will maintain a
balanced budget over the two-year period of the
Financial Plan. This means that:
1. Operating revenues must fully cover
operating expenditures, including debt
service.
2. Ending fund balance (or working capital in
the enterprise funds) must meet minimum
policy levels. For the general and enterprise
funds, this level has been established at 20%
of operating expenditures.
Under this policy, it is allowable for total
expenditures to exceed revenues in a given
year; however, in this situation, beginning
fund balance can only be used to fund capital
improvement plan projects, or other “one-
time,” non-recurring expenditures.
B. Long-Term Liabilities and Maintenance of
Infrastructure. The City will give priority to applying
unassigned fund-balance due to one-time
expenditure savings or one-time increase in revenue
to pay down long-term unfunded liabilities and
invest in infrastructure and equipment.
FINANCIAL REPORTING AND BUDGET
ADMINISTRATION
A. Annual Reporting. The City will prepare annual
financial statements as follows:
1. In accordance with Charter requirements,
the City will contract for an annual audit by a
qualified independent certified public
accountant. The City will strive for an
unqualified auditors’ opinion.
2. The City will use generally accepted
accounting principles in preparing its annual
financial statements and will strive to meet
the requirements of the GFOA’s Award for
Excellence in Financial Reporting program.
3. The City will issue audited financial
statements within 180 days after year-end.
B. Interim Reporting. The City will prepare and
issue timely interim reports on the City’s fiscal
status to the Council and staff. This includes on-
line access to the City’s financial management
system by City staff; monthly reports to program
managers; more formal quarterly reports to the
Council and Department Heads; mid-year budget
reviews; and interim annual reports.
C. Budget Administration. As set forth in the City
Charter, the Council may amend or supplement
the budget at any time after its adoption by
majority vote of the Council members. The City
Manager has the authority to make
administrative adjustments to the budget as
long as those changes will not have a significant
policy impact nor affect budgeted year-end fund
balances.
D. Development Services Revenue. The City
Manager may allocate or designate 75% of over-
realized Development Services revenues
exceeding adopted budget for the current fiscal
year for temporary Development Services
expenditures for the purpose of timely
processing of development permit applications
in the current fiscal year or throughout life of
applicable projects. Any and all City Manager
authorized allocations and funds set aside in a
designation for future use, shall be reported to
the Council on a semi-annual basis.
For a comprehensive list of the City’s financial
policies, please see the reference section.
19 Packet Page 28
STRATEGIC PRIORITIES
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Packet Page 30
Strategic Priorities
Strategies guiding the 2019-21 Financial
Plan
2019-21 City Council Financial Plan Vision
The City of San Luis Obispo is a dynamic community embracing its future while respecting
its past with core values of civility, sustainability, diversity, inclusivity, regionalism,
partnership, and resiliency.
In t he pla nning p rocess we a re
commit ted to:
1. Being honest and respectful in
our discussions.
2. Participating with active
listening and respectful
challenging
3. Believing in the process and the
outcome
4. Allowing for differences
5. Learning from the past
6. Making the process and
progress visible
7. Committing to transparency
around priorities
8. Engaging the public
With t he plan we a re commit ted to:
1. Creating a clear plan with agreed upon
purposes
2. Making sure our stated values are clear
3. Making defining, concrete statements
4. Including timelines, measurables, and
budgets for all items
5. Making the plan accessible
In impl ement ation we a re commit ted
to:
1. Doing what we say
2. Remaining open to new information, new
ideas, and public input
3. Scheduling bi-annual updates with
Council on progress
4. Considering emerging issues
21 Packet Page 31
Strategic Priorities
Strategic Objectives for 2019-21
1) Continued Implementation of the adopted Fiscal Health Response Plan.
2) Implementation of the work programs for five Major City Goals (strategic
objectives).
Objective 1 - Housing
• Affordable Housing Nexus Study
• Housing Element
• Flexible Density Program
• Safety Element
Objective 2 - Climate Action
• Climate Action Capacity Building Resources
• Priority Climate Action Plan Implementation
• Adaption and Resilience
Objective 3 - Sustainable Transportation
• Creating Safe Bicycling and Walking Opportunities
• Infrastructure Supporting Housing & VMT/GHG Reductions
• Enhancing Transit Services
• Emerging Trends and Technologies
Objective 4 - Fiscal Sustainability and Responsibility
• Fiscal Health
• Organizational Effectiveness
• Economic Development
• Emergency Preparedness
• Infrastructure Financing
Objective 5 - Downtown Vitality
• Safety
• Maintenance
• Infrastructure
• Amenities
• Economic Development
22 Packet Page 32
Fiscal Health Response Plan
2019-21 Fiscal Health Response Plan
The purpose of the City’s Fiscal Health Response Plan (FHRP) is to provide a framework to respond to
the long-term fiscal impacts of the significant increases in required pension contributions to the CalPERS
retirement system. The adopted Plan contains three key components which began to apply with the
2018-19 Financial Plan Supplement.
Key Components to Achieving a Structurally Balanced Budget
New Revenues
In November 2018, the City’s voters approved a Cannabis tax, allowing the industry to legally operate
within the boundaries of the City. This affords the City a new income source through a special business
tax on all Cannabis related businesses. In addition to a Cannabis tax on sales of the product, the City is
also ensuring compliance with existing City regulations and taxes and pursuing enforcement as
applicable including the emerging industry of homestay businesses. The following highlight new
revenues under the FHRP.
Code Enforcement
Transient Occupancy Compliance of Homestay businesses
Business license and tax compliance
Cannabis license and business tax
New Revenues
30-40%
Employee
Concessions
20-30%
Operating
Reductions /
New Ways of
Doing Business
30-40%
Packet Page A-1
Fiscal Health Response Plan
Operating Reductions and New Ways of Doing Business
All City funds (general and enterprise) are participating in this component to varying degrees. The plan
contains a list of operating reduction options to be pursued along with new ways of doing business. These
new ways of doing business focus on energy efficiency and include thoughtful reorganizations that will
enable the City to deliver services differently while minimizing impacts to residents and other customers.
Thoughtful reorganizations will be facilitated by the Organization of the Future with Phase One, focused
on the community services group, beginning with this two-year financial plan.
Some operating reductions or new ways of doing business could require meet and confer with
represented employee groups in advance of implementation. Meet and confer along with other influences
on the implementation schedule will be accounted for as the Plan is put into actionable steps. The
concepts are generally as follows.
Concessions – All City Employees and All Funds Over the FHRP Three Year Term
All regular City employees from all Funds participate in the same CalPERS retirement system with the
benefit formula under that system varying based on employee group and hire date. Council has adopted
policies including the Financial Responsibility Philosophy, Compensation Philosophy, and Labor Relations
Objectives, all of which address and implement the concept of “shared responsibility.” This concept
acknowledges the responsibility of the City and its employees to share the burden of pension and health
costs, including addressing unfunded liabilities, while recognizing that increasing the employee share of
this cost may impact the City’s ability to attract and retain well-qualified employees that ultimately deliver
programs and services to the community. With that in mind, concessions are proposed as a significant
component of the Plan.
The Plan recognizes a phased approach for all reductions, including employee concessions, with the
anticipated ongoing concession amount reaching the objective of $1.9 million for all funds by fiscal year
2020-21.
Packet Page A-2
Fiscal Health Response Plan
The Plan’s three-year term affords the City the ability to negotiate in good faith with its bargaining units
to tailor labor agreements that potentially meet mutual objectives. For example, funding the CalPERS
system to help ensure its future viability is in the interest of the employees that have service in the system,
while maintaining a “competitive” compensation package is in the interest of the City for attracting and
retaining well qualified employees.
Fiscal Health Response Plan Three-Year Target
Fiscal Health Response Plan in Numbers (thousands)
2018-19 2019-20 2020-21 Total
New Revenue
BL&T Enforcement $ 50 $ 50 $ 50 $ 150
Code Enforcement $ 50 $ 50
New Ways of Doing Business $ 20 $ 20
Homestay Compliance $ 200 $ 30 $ 30 $ 260
Cannabis Tax 1 $ 225 $ 1,200 $ 1,500 $ 2,925
Concessions $ 436 $ 270 $ 994 $ 1,700
Expenditures Savings
Bond Refinancing $ 83 $ 271 $ 354
CalPERS Prepayment $ 323 $ 30 $ 30 $ 383
Operating Reductions $ 802 $ 237 $ 565 $ 1,604
Overall Total $ 2,189 $ 2,088 $ 3,169 $ 7,446
1 Revenues in the financial forecast are $650,000 and $1,500,000 respectively for the 19-21 Financial Plan due to
longer than expected timelines for businesses to open.
General Fund
Target
$7.5M
2018-21 Enterprise
Funds Target
$1.4M
2018-21
Packet Page A-3
Major City Goals
2019-21 Major City Goals
Introduction
The development of the two-year financial plan began in September 2018 and included
numerous informational sessions with the Community and Council to “set the stage”. Extensive
public engagement included a community survey, outreach to community groups, and a well-
attended Community Forum. These efforts resulted in direction and feedback from the City
Council that shaped Major City Goal priorities. Based on the input and feedback received, the
Council met on February 4, 2019, and after thoughtful deliberation, the Council selected five
goals and gave direction to staff to establish appropriate work programs to achieve these defined
goals. Each of the five goals was to be crafted through the lens of the following Vision Statement
and each work program was endeavored to leverage the synergies and nexus between each
respective goal.
City Council Vision for its 2019-21 Major City Goals
The City of San Luis Obispo is a dynamic community embracing its future while
respecting its past with core values of civility, sustainability, diversity, inclusivity,
regionalism, partnership, and resiliency.
Work Programs
The five major city goal work programs identify the fiscal resources for programmatic and capital
efforts to achieve the recommended milestones within each goal. The five goals are largely a
continuation along the trajectory of previous Council goals established during the last financial
plan. However, each work program has been uniquely crafted to respond to discrete direction
while continuing efforts that span multiple financial plans.
Housing
Goal Statement
Facilitate the production of housing with an update of the Housing
Element, including an emphasis on affordable housing (including
unhoused people) and workforce housing through the lens of climate
action and regionalism.
Housing Work Program Summary
The proposed approach to this Major City Goal identified tasks and resources to facilitate the
community’s current and future housing and inclusionary priorities, goals, and values. Those
tasks are organized within two distinct categories: 1) Housing Major City Goal (MCG) Priorities
and 2) Ongoing Housing Production Programs. The MCG Priorities are further organized into a
Packet Page A-4
Major City Goals
hierarchy of three sub-categories: 1) Core Priorities, 2) Secondary Priorities and 3) Tertiary
Priorities. The purpose of this organizational structure is to ensure:
1.Core tasks are completed prior to State and City deadlines;
2.Adequate resources are allocated to the identified tasks, including staffing support
and workload prioritization; and
3.Objectives described in the Goal Statement are fulfilled.
The most significant task in this work program is the Housing Element update, which will be a
multi-departmental effort that includes policies to facilitate the production of diverse housing
types, for the inclusion of housing production that supports the needs of diverse households (i.e.,
including but not limited to: extremely low income, elderly, large families, disabled persons,
unhoused persons, students, single room occupancy, veterans, and the “missing middle”
workforce) within San Luis Obispo. The Housing Element update is also a crucial strategic
implementation tool for addressing important changes to State housing law and climate
adaptation/resiliency.
Investment in Housing Major City Goal
Fiscal Sustainability and Responsibility
Goals Statement
Continue to implement the City’s Fiscal Responsibility Philosophy with a
focus on efficiencies, strategic economic development, unfunded
liabilities, and infrastructure financing (Funding the Future).
Fiscal Sustainability and Responsibility Work Program Summary
The proposed approach to this Major City Goal continues a multi-faceted approach to protect
the City’s fiscal health. It mirrors the City’s Fiscal Health Response plan and looks to increased
revenue through economic development efforts and diversification, and thoughtful
reorganizations to increase operational efficiencies and best prepare the organization for the
future.
It seeks to identity barriers to diversity and inclusion within the organizational systems and
pursues best management practices for cost containment and improved budgeting. The goal
Packet Page A-5
Major City Goals
Total
Investment $13,997,804
Capital
Improvement
Plan $0
Operating
Budget
$13,997,804
takes a long-term look at protecting the City against financial volatility and incorporates efforts
in climate action and emergency preparedness as well as long term capital investment. The work
program is organized into 1) “Fiscal Health”, 2) “Organizational Effectiveness”, 3) “Economic
Development”, 4) “Emergency Preparedness”, and 5) “Infrastructure Financing
Investment in Fiscal Sustainability and Responsibility
Sustainable Transportation
Goal Statement
Enhance accessible regional transit, bicycle, and pedestrian mobility to
promote a transition to a car-free or shared-car lifestyle and to reduce
greenhouse gases.
Sustainable Transportation Work Program Summary
The proposed approach to this Major City Goal identifies tasks and resources to advance the
priorities, goals, and values associated with accessible and sustainable transportation. The tasks
are organized by four topical areas: 1) “Safe and Enhanced Walking and Biking”; 2)
“Infrastructure”, 3) “Transit Services” And 4) “New Trends, Technological Opportunities and
Community Education”. A series of capital projects are proposed that focus on maintenance and
new construction to support safe and efficient pedestrian, bike, and vehicular mobility. With
transit services, in addition to focused efforts to increase ridership, electric vehicles are being
researched and identified for potential replacement of aging resources. Outcomes from this Goal
include, but are not limited to, beginning construction on the Prado Road Interchange and Prado
Creek Bridge, completion of Phase 1 and 2 of the Anholm Neighborhood Greenway, and
significant progress towards the City’s modal split goals, with increased volumes of bicycle,
pedestrian, and transit users.
Investment in Sustainable Transportation
Packet Page A-6
Major City Goals
Climate Action
Goal Statement
In response to the climate crisis, continue to update and implement the
Climate Action Plan for carbon neutrality, including preservation and
enhancement of our open space and urban forest and planning for
resilience.
Climate Action Work Program Summary
The Climate Action Major City Goal addresses the cause of climate change through greenhouse
gas emissions (GHG) reductions and prepares for the growing impacts of climate change so that
the City can adapt, become resilient, and thrive in a rapidly changing climate. Put simply, the
overarching vision is to Act, Adapt, and Thrive.
The work plan seeks to actively create opportunity and ensure the community remains a
dynamic, high quality place to live and work, while protecting and stewarding the natural
environment within and surrounding the City. The work program commits to the values of civility,
sustainability, diversity and inclusivity, regionalism and partnership, and resiliency.
The proposed scope of work: 1) “Builds Organizational and Community Capacity and Processes
for Substantial, Sustained, and Effective Climate Action”; 2) “Implements Priority Climate Action
Plan Measures to Lay the Foundation for Achieving Carbon Neutrality By 2035”, And 3) “Assesses,
Plans, And Implements Measures to Enhance the Community’s Resilience to The Impact of
Climate Change”. The work will be coordinated across Major City Goals and Departments to
ensure successful implementation.
Investment in Climate Action
Packet Page A-7
Major City Goals
Downtown Vitality
Goals Statement
Support the economic and cultural heart of the City with attention to safety,
maintenance, infrastructure, and amenities.
Downtown Vitality Work Program Summary
The Major City Goal of Downtown Vitality is responsive to the community’s
desire for the continuous care and preservation of what is often referred to as
the “heart of the City”. Known for its rich history and as a destination for locals
and travelers, our downtown continues to evolve, and the work program proactively addresses
its current and future needs. An area of investment in the plan also addresses the needs of local
businesses and tasks have been identified in order to play a supportive role in helping businesses
prosper. The proposed work program reflects the core areas of attention identified in the Goal
Statement – 1) “Safety”, 2) “Maintenance”, 3) “Infrastructure and Amenities”, and 4) “Strategic
Economic Initiatives That Support A Beautiful, Vibrant Downtown.”
The installation of new infrastructure and ongoing maintenance will ensure that we are taking
care of “the bones” of the downtown and providing for not only its smooth functionality, but also
an elevated level of beautification as well.
Many initiatives will be successfully achieved in collaboration with Downtown SLO, our City’s
business improvement association, our Tourism Business Improvement District and by continuing
to interface with other cultural and business-centric nonprofit organizations. The update to the
City’s Economic Development Strategic Plan and the potential creation of new programs that
support downtown properties are other exciting tasks included in the work plan.
b. Investment in Downtown Vitality
Packet Page A-8
Major City Goals
Overall Investment in all Major City Goals for 2019-21
Combined, the investment over the next two years for the five defined Major City Goals are as
follows:
Packet Page A-9
MAJOR CITY GOALS
HOUSING
GOAL STATEMENT
Facilitate the production of housing with an update of the Housing Element, including an emphasis on affordable housing (including unhoused
people) and workforce housing through the lens of climate action and regionalism.
ALIGNMENT WITH THE CITY COUNCIL’S VISION:
The Action Plan for the Housing Major City Goal aligns with the City’s Vision Statement by incorporating
tasks and resources to facilitate the Community’s current and future housing and inclusionary priorities,
goals, values. The Housing Element includes policies facilitating the production of diverse housing types,
for the inclusion of housing production that supports the needs of diverse households (i.e., including but
not limited to: extremely low income, elderly, large families, disabled persons, homeless persons,
students, single room occupancy, veterans, and the “missing middle” workforce) within San Luis Obispo.
RESPONSIBLE DEPARTMENT
The Community Development Department is the lead on this goal with assistance from Administration, City Attorney, Finance, Fire, Public Works,
and Utilities. All departments and divisions involved in the development review process play a key role in the review and permitting of housing
projects. The City Attorney’s office plays an important role to assist and advise on existing and emerging State housing laws and reviews affordable
housing loan documents, agreements, and other contracts. It is anticipated that the Finance Department will transition to become the manager
of all monies and assets related to the City’s Inclusionary Housing and In-Lieu Fee Program such as the Affordable Housing Fund, BEGIN Program,
deeds of trust, promissory notes, grant awards, and other agreements. As such, the Finance Department plays a key role during property
transactions involving affordable housing units.
PROPOSED WORK SCOPE
Due to State Regulations and upcoming deadlines on the horizon, the Work Program for the Housing Major City Goal is organized differently than
prior financial plan cycles. As listed in the table below, tasks are organized within two major categories: 1) Housing Major City Goal (MCG) Priorities 23Packet Page 33
MAJOR CITY GOALS
HOUSING
and 2) Ongoing Housing Production Programs. Furthermore, the MCG Priorities are organized in a hierarchy of three categories: Core Priorities,
Secondary Priorities, Tertiary Priorities. The intent of this organizational structure is to ensure:
A) Core tasks are completed prior to State and City deadlines;
B) Adequate resources are allocated to the indicated tasks, including staffing support and workload prioritization; and
C) Objectives described in the Goal Statement are fulfilled.
Work Program Constraints and Limitations
• Ongoing changes to State Legislation related to Housing and Land Use policies may require periodic amendment and or update of our
housing policies and programs.
• Significant public involvement in housing policy development and construction projects, as well as needed additional consultant support
for Work Plan items.
• Competing priorities that emerge and utilize resources otherwise needed to address housing programs.
• Reliance on non-profit and for-profit developers to come forward with development proposals to increase the supply of housing since the
City does not own, manage, or build affordable housing itself.
• The City’s limited ability to control the decisions and funding of outside agencies and housing providers. The provision of housing and
implementation of the Housing Element requires a variety of City Departments, outside agencies (Dept. of Housing and Community
Development) and housing providers to commit to, and accomplish, their related work programs.
• Required land use entitlements for housing projects (use permit, architectural review, environmental review, etc.) and possible appeals.
• Vast number and divergent objectives of stakeholders or decision makers including housing agencies, non- profit organizations, business
and property owners, residents and neighborhood groups (see “Stakeholders” below).
• Public infrastructure needs that are not fully funded through the City’s development impact fee program.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Additional Significant Operating Budget Change – Yes
24Packet Page 34
MAJOR CITY GOALS
HOUSING
Significant investment will be required to successfully implement this Goal, however 40 percent of the resources required can be made available
by prioritizing housing related work through existing budget resources. New investment is required and is detailed below as well as in the work
plan summary:
1. New funding to support Core MCG Priority tasks: Affordable Housing Nexus Study, Housing Element update,
implementation of incentives to encourage production of the “missing middle” housing type, and administration of the
Affordable Housing Monitoring Program - $158,370 in 2019-20 and $73,850 in 2020-21.
2. New funding to support Secondary MCG Priority tasks: administrative processing improvements to facilitate housing
production and begin Safety Element update, develop and manage a Flexible Density Pilot Program, Zoning Regulations
update to implement flexible density development options in the Downtown/Upper Monterey/ Mid-Higuera Special Focus
areas to support housing production, and begin the Community Design Guidelines update- $212,760 in 2019-20 and
$245,050 in 2020- 21.
3. New funding to support Tertiary MCG Priority tasks: safe housing outreach and education, review of the High Occupancy
Residential Use Ordinance for consistency with best practice and neighborhood wellness, Subdivision Regulations update,
assist with the coordination of a Childcare Study, and assist with the facilitation of a diversity and inclusion world café
discussion to insert diversity and inclusivity into existing award processes for City funded programs that foster ongoing
community dialogue and engagement around this topic - $71,547 in 2019-20 and $102,965 in 2020-21.
4. New funding to support Ongoing Housing Production Program tasks: Housing Element implementation, grant funding
management, promoting development of on-campus housing, supporting amendment to tax sharing agreements to
encourage housing production, provide timely review of plan check and building permits/inspections for new housing
development, and encourage developments that improves the City’s jobs/housing balance – $407,159 in 2019-20 and
$226,788 in 2020-21.
5. Ongoing funding to support Ongoing Housing Production Program tasks: housing production for reimbursement
agreement with the Housing Trust Fund for administrative operations that support financing the ongoing production of
affordable and transitional housing – $40,000 annually from the Affordable Housing Fund.
25Packet Page 35
MAJOR CITY GOALS
HOUSING
ACTION PLAN AND COST SUMMARY
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Core MCG Priorities*
1) Complete an Affordable
Housing Nexus Study in
alignment with HE 2.15 and
HE 4.6*
CDD; All
Departments;
Affordable housing
& market-rate
developers; San
Luis Obispo County
Housing Trust Fund
Fall 2019 $62,963
0.30
0.30
26Packet Page 36
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
2) Complete an update to
the City's Housing Element
in alignment with the 6th
Regional Housing Needs
Allocation (RHNA) with a
focus on housing
production for all
households and the
unhoused, and begin
technical work for the
update of the Safety
Element*
CDD; All
Departments;
Affordable housing
& market-rate
developers;
Residents; Non-
profit
organizations; Mid
and Large-scale
Employers
Summer
2020 $114,220
0.40
0.70
$104,270
0.50
0.70
3) Launch a program that
creates housing for Above
Moderate-Income
Households that includes
"missing middle" housing
types, that is consistent
with HE 2.16*
CDD; Residents;
Affordable housing
& market-rate
developers;
Economic Vitality
Corporation;
General Workforce
Summer
2020 $45,436
0.20
0.20
27Packet Page 37
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
4) Continue the Affordable
Housing Monitoring
Program*
CDD; Attorney Fall 2019 $25,960 0.25 $25,960 0.25
Secondary MCG Priorities*
5)Launch the Flexible
Density Pilot Program and
initiate an update of the
Zoning Regulations and
Community Design
Guidelines to incorporate
flexible density
development options in
the Downtown/Upper
Monterey/Mid-Higuera
Special Focus Area to
support the production of
smaller housing units
CDD; Affordable
housing & market-
rate developers;
Home Builders
Association
Summer
2021 $212,760 1.00 $177,791
0.20
1.40
6) Complete a text
amendment to Land Use
Element Table 3
CDD; All
Departments
Summer
2020 $5,638 0.05 28Packet Page 38
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
7) Develop new housing-
specific Key Performance
Indicators (KPIs) for cycle
times and set performance
measures
CDD Summer
2020 $5,638 0.05
8) Develop management
plan for housing and new
Capital Facilities Districts
(CFDs) during
development construction
phases
CDD Spring
2021 $5,638 0.05
9) Begin an update to the
City's Safety Element in
alignment with climate
action policies and
initiatives and HE 1.8
CDD; All
Departments
Summer
2021 $106,724
0.30
0.80
Tertiary MCG Priorities* 29Packet Page 39
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
10) Safe housing outreach
and education; and review
of the High Occupancy
Residential Use Ordinance
for consistency with best
practices and
neighborhood wellness
CDD; All
Departments
Summer
2021 $41,273 0.50 $62,965
0.10
0.50
11) Update the Subdivision
Regulations
CDD; Affordable
housing & market-
rate developers;
Home Builders
Association
Summer
2021 $35,912
0.05
0.25
12) Coordinate a study to
examine the impacts of
access to quality and
affordable childcare on a
Parents' ability to afford
housing near employment
centers and daily services
CDD; ADMIN;
Major employers;
Childcare
providers;
Community
stakeholders
Summer
2021 $25,638 0.05 30Packet Page 40
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
13) Support the HRC with
the facilitation of a world
café to discuss diversity
and inclusivity to identify
how the City can
effectively insert the
diversity and inclusivity
into existing award
processes for City funded
programs that foster
ongoing community
dialogue and engagement
around this topic
CDD; ADMIN; PD;
Cal Poly;
Community
advocates, allies
and stakeholders
Summer
2021 $25,638 0.05
Ongoing Housing Production Programs*
14) Implement the housing
production goals, policies,
and programs in the
Housing Element
CDD Ongoing $115,263 1.15 $111,558 1.15 31Packet Page 41
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
15) Manage and prioritize
grant funding (i.e. CDBG,
GIA, AHF) for housing
production available for
extremely-low, very-low,
low, and moderate-
income households
CDD Ongoing $36,450 0.35 $36,450 0.35
16) Coordinate with non-
profit housing agencies on
new 100% affordable
housing developments
CDD; affordable
housing
developers
Ongoing $10,590 0.10 $10,590 0.10
17) Continue to promote
on-campus housing
growth
CDD; Cal Poly Ongoing
18) Support amendments
for future property tax
sharing agreements to
encourage housing
CDD; Attorney Ongoing
19) Monitor and report on
changing State housing
legislation
CDD; Attorney Ongoing 32Packet Page 42
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
20) Continue to prioritize
streamlining and
expediting projects that
facilitate increased
production of all housing
types that are
economically accessible to
extremely-low, very-low,
low, and moderate-
income residents
CDD Ongoing $23,979 0.25 $28,190 0.25
21) Provide timely plan
check review, building
permit review and
inspections for new
housing developments*
CDD; All
Departments Ongoing $180,877 1.85 $50,000
Consultan
t Plan
Check
Service
22) Continue to support
employer/employee and
employer/developer
financing programs and
Public/Private/Non-Profit
partnerships to increase
housing opportunities for
CDD; All
Departments Ongoing $5,638 0.05 33Packet Page 43
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
the unhoused and local
workforce.
23) Continue the City’s
participation with (but
limited to) the San Luis
Obispo County Housing
Trust Fund and the Home
Builder's Association, to
identify, evaluate, and
implement strategies to
increase the production of
housing.
CDD Ongoing $40,000 $45,638 0.05
24) Encourage residential
developers to sell or rent
their projects to
households employed in
areas that are
geographically included in
the boundaries of the
City's jobs: housing
balance analysis, in
alignment with HE 10.4.
CDD Ongoing $5,638 0.05 34Packet Page 44
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department and
Stakeholders
Comp.
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Total
$112,761
$849,836
8.00 $0
: $124,037
$698,651
6.85 $0
Total Investment Per
Fiscal Year** $962,597 $822,688
* Significant Operating Budget Change to accomplish this goal
**Includes cost associated with the Housing Trust Fund reimbursement agreement ($40,000 annually), the Building and Safety Fee for Service Program update
($50,000 in fiscal year 2020-21), and temporary re-allocation of existing staff resources to implement MCG tasks.
DESIRED OUTCOMES AND MEASURES
The City of San Luis Obispo has completed an extraordinary amount of land use planning and strategic planning for infrastruct ure to support its
housing production goals. Over the next two years, the City will continue to facilitate housing production as major new subdivisions (Avila Ranch,
San Luis Ranch) “break ground” and others (Righetti Ranch, Toscano) continue through the housing production phase. The City has planned to
accommodate annual average growth of 1%, but historically has only accomplished a sustained rate of growth of about .35%. The planning
completed and entitlements granted over the past few years will ensure that housing production occurs up to the planned rate of growth. Housing
production is measured by the City and State based on the number of units constructed and occupied during a given year.
Another outcome of the Major City Goal work program will be an update of the City’s Housing Element. The Housing Element update will transition
the City from a five-year planning cycle to an eight-year cycle. This work effort will ensure that the City’s housing related goals, policies and 35Packet Page 45
MAJOR CITY GOALS
HOUSING
programs reflect the needs of the community and meet State requirements. The City recognizes the seriousness of the current housing crisis and
climate vulnerability and is committed to facilitating ongoing production of housing in alignment with the City’s target of c arbon neutrality by
2035. This outcome will be measured by the City’s ability to meet the deadlines associated with State certification of the City’s Housing Element.
Tertiary and ongoing tasks associated with the Major City Goal will be accomplished and measured through the percentage of th e work program
completed. Major City Goal status reports will keep the City Council and community up to date with progress on the wide range of implementation
efforts described in the Action Plan and cost summary.
36Packet Page 46
MAJOR CITY GOALS
CLIMATE ACTION
GOAL STATEMENT
In response to the climate crisis, continue to update and implement the Climate Action Plan for
carbon neutrality, including preservation and enhancement of our open space and urban forest and
planning for resilience.
ALIGNMENT WITH THE CITY COUNCIL’S VISION
The climate crisis has already impacted the City and will have escalating negative impacts to local
economic conditions, quality of life, and environmental health. The Climate Action Major City Goal
addresses the cause of climate change through greenhouse gas emissions (GHG) reductions and
prepares for the growing impacts of climate change so that the City can adapt, become resilient, and
thrive in a rapidly changing climate. Put simply, the overarching vision is to Act, Adapt, and Thrive.
The work plan provided below seeks to actively create opportunity and ensure the community
remains a dynamic, high quality place to live and work, while protecting and stewarding the natural
environment within and surrounding the City. The work is deeply and fundamentally committed to
the values of civility, sustainability, diversity and inclusivity, regionalism and partnership, and resiliency.
RESPONSIBLE DEPARTMENT
The Climate Action Major City Goal is led by the City Administration Department’s Office of Sustainability with close support from the Community
Development, Public Works, Utilities, Parks and Recreation, and Fire Departments. Ultimately, in order to be successful, all City departments must
be highly engaged in addressing the climate crisis.
PROPOSED WORK SCOPE
The proposed scope of work: 1) builds organizational and community capacity and processes for substantial, sustained, and effective climate
action; 2) implements priority Climate Action Plan measures to lay the foundation for achieving carbon neutrality by 2035, and 3) assesses, plans,
and implements measures to enhance the community’s resilience to the impact of climate change. The work will be coordinated across Major City
Goals and Departments to ensure successful implementation. In short, the proposed scope of work focuses on collaboration, carbon neutrality,
and resiliency.
The proposed scope of work includes the following key activities:
• Climate Action Capacity Building Resources 37Packet Page 47
MAJOR CITY GOALS
CLIMATE ACTION
o Completing the update of the Climate Action Plan, with intentional outreach to underrepresented communities, to identify the
path to carbon neutrality by 2035 including high priority near term implementation actions.
o Creating organizational capacity to implement the Climate Action Plan by adding two Civic Spark Fellows1 per year, developing a
sustainability intern position with increased outreach to diverse populations through the recruitment process, reorganizing the
City’s inter-departmental Green Team to reflect the structural needs of the Office of Sustainability, and further integrating
climate change and equity considerations into administrative practices and City decision making processes.
o Providing staff time to develop community capacity to implement the Climate Action Plan by supporting the SLO Climate Coalition
and the SLO Green Business Network.
• Priority Climate Action Plan Implementation
o Complete ongoing climate projects including proposing and adopting amendments to the City’s Building Code to provide a path
for new buildings to be GHG neutral. The building code update project includes a related task to research and potentially develop
a carbon offset program as a means of supporting voluntary energy efficiency retrofits in the future.
o Actively participate in the Monterey Bay Community Power Policy and Operations Boards and support program launch (anticipated
January 2020). Following program launch, staff will advocate for and work locally to maximize participation in Monterey Bay
Community Power’s programming focused on low income and disadvantaged communities.
o Implementation of high priority greenhouse gas emissions reduction actions, which include developing Purchase Power
Agreement (PPA) solar projects, implementing the Water Treatment Plant Energy Efficiency Project (solar and in-line hydro-electric
power, plus infrastructure efficiency), establishing a transportation electrification strategic plan, developing a building retrofit
program, formalizing a solid waste program in the Utilities Department, completing LED lighting retrofits with on -bill financing,
formalizing a solid waste and organic waste diversion program, completing municipal operations climate action and zero waste
plans, developing an urban forest master plan, implementing a carbon farming pilot project, and planting new trees.
o Continue maintaining, enhancing, and expanding the City’s Open Space and Urban Forest programs. Consistent with the City
Council adopted Saving Special Places Forever vision plan, the City’s Open Space programming will break down barriers to open
space access and further engage with non-traditional user groups. The California ReLeaf funding through the SLO Climate Coalition
that supports the Urban Forest program was specifically awarded on the basis of implementation in low income areas.
• Adaptation and Resilience
o Planning for climate adaptation and community resilience through the update of the Safety Element of the General Plan and
Community Vulnerability Assessment, and completion of the in-process Hazard Mitigation Plan, Community Wildfire Protection
Plan, and Emergency Response Plan. Pending approval of Caltrans grant funding, the Community Vulnerability Assessment will
1 Civic Spark is a fellowship program administered by the Local Government Commission and AmeriCorps. 38Packet Page 48
MAJOR CITY GOALS
CLIMATE ACTION
identify the people, neighborhoods, and communities most at risk to the impacts of climate change. The Safety Element of the
General Plan update will establish policies to reduce these risks.
o Focused resilience actions including Wildland Urban Interface (WUI) fuel reduction projects in City open space, conducting “Ready-
Set-Go” fire awareness and outreach programing, preparation of a Stormwater Business Plan to identify groundwater recharge
potential, and the prioritization of flood control work.
Work Program Constraints and Limitations
Actions to address climate change require significant financial and resource investments over an extended period; ongoing commitment and
continuity beyond the term of 2019-21 Financial Plan will be necessary. There are grants, state and federal funding, public/private partnerships,
and non-traditional funding opportunities available to help offset the cost associated with certain climate action resilience projects and GHG
emission reduction implementation strategies and measures. To facilitate pursuit of outside funding resources to achieve this Goal, the City
has already established grant writing and project outreach assistance for the 2019-21 Financial Plan period.
Due to the scale of change needed to achieve carbon neutrality and adaption and resilience targets, additional staffing resources are needed.
Given limited financial resources, this work program supplements existing staff with CivicSpark Fellows and a formal Climate Internship Program,
while also proposing a reorganization of the Green Team to more effectively collaborate across departments. The 2019 -21 Financial Plan period
will allow staff to assess the sufficiency of these staff resources and to propose changes, if needed, following the adoption of the Climate Action
Plan.
There are several other constraints that might limit program implementation and success, beyond financial and staffing resources. Climate action
requires commitment from residents, business owners, developers, regional agencies, the State and Federal governments, other local jurisdictions,
and energy providers. Collaboration and consolidation of resources will be necessary to achieve success on a large scale. Provided below are a list
of some of the specific constraints that can reasonably be expected during implementation of this goal:
• The availability of grant funding may be limited, uncertain, or highly competitive to secure.
• Competing staff priorities which may delay implementation of the work program over a longer period than originally anticipated.
• Significant public involvement or coordination with business, community or neighborhood groups will be required to address the GHG
emissions produced in the city that come from the community.
• Willingness to implement regulations that require shared costs between the public and private sectors to achieve GHG reduction goals.
• Ongoing reliance on support from jurisdictional partners (e.g. Tri-County Regional Energy Network, Monterey Bay Community Power, SLO
Air Pollution Control District, etc.) 39Packet Page 49
MAJOR CITY GOALS
CLIMATE ACTION
By utilizing local and regional resources and collaborating with jurisdictional partners to consolidate scarce resources and efforts, the challenges
listed above may be overcome with continued commitment, continuity, and focused action on plans and programs that have the greatest potential
to reduce emissions and strengthen resilience. Additionally, by integrating climate change related issues into routine decision-making processes,
climate action can become standard operating procedure, significantly streamlining action and reducing costs. Finally, the City’s relationship with
the SLO Climate Coalition will substantially amplify the importance of climate action within the community and multiply the efforts undertaken
pursuant to this work program.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Additional Significant Operating Budget Change – Yes
Accomplishing this goal will require leadership commitments from City staff and will require extended collaboration across departments and with
the residential and business community. As noted in the Action Plan, below, tasks are spread across departments and include projects funded by
the General Fund, Water Fund, grants, and support from staff and the community. Total new operating budget requests for Fiscal Year 2019-20
and 2020-21 are $330,000 and $128,000, respectively ($458,000 in total). Of the total $4 58,000 requested for the two-year budget, $313,000 is
for greenhouse gas emissions reduction work; $145,000 is for resilience and adaptation work.
This goal is supported through ongoing Capital Improvement Projects, including urban forest augmentation, open space preservation, and open
space maintenance and a new Capital Improvement Project to install electric vehicle chargers at City Hall. The work program also includes
enhanced staffing and equipment for flood control. Additionally, two new, non-traditional Capital Improvement Projects are included in the Major
City Goal: 1) solar projects at Fire Station 1, the Bus Yard, and the SLO Swim Center; and 2) on-bill financing lighting energy efficiency retrofits at
the City’s parking garages and at numerous other facilities. These are non-traditional since they have no out of pocket costs and implement the
City’s Fiscal Health Response Plan by contributing to utility savings. They are included here to ensure Public Works staff capacity to assist with
project management. Greyed out dollars show existing budgeted resources allocated to tasks and bold show new resources being funded through
SOBCs.
40Packet Page 50
MAJOR CITY GOALS
CLIMATE ACTION
ACTION PLAN AND COST SUMMARY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completio
n Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Climate Action Capacity Building Resources
1) Complete and Adopt Climate
Action Plan
Admin/All
Departments Nov-19 $95,000 .20
2) Civic Spark Fellowship Program Admin/All
Departments Ongoing $55,000 .10 $53,000 <.10
3) Sustainability Internship
Program
Admin/All
Departments Ongoing $15,000 .10 $15,000 <.10
4) Green Team Reorganization Admin/All
Departments Ongoing .25
5) SLO Climate Coalition Support Admin Ongoing $20,000 <.10 $10,000 <.10
6) Integrate climate considerations
into City decision making Admin Jan-21 .10 .10
7) 2020 GHG inventory Admin April-21 .10
8) Support SLO Green Business
Network and Certify City Hall as a
Green Business
Admin Jul-19 $10,000 <.10 .10
9) "Sustainable SLO" Branding
Implementation Admin Ongoing $30,000 <.10 <.10
Priority Climate Action Plan Implementation
10) Monterey Bay Community
Power Board Participation and
Program Launch
Admin Ongoing <.10 <.10
11) Develop PPA solar projects
(CIP) PW/Utilities/Admin Jan-20 <.10 .70 0.70
12) Water Treatment Plant
Energy Efficiency Project Utilities Jun-20 .50 1.00 $15,146,00
0 1.50
13) Transportation
Electrification Strategic Plan PW/Admin Dec-20 $30,000 .10 41Packet Page 51
MAJOR CITY GOALS
CLIMATE ACTION
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completio
n Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
14) Complete Reach Codes for
New Development and Develop
Carbon Offset Program
CDD/Admin Dec-19;
Ongoing $40,000 .25
15) Building Electrification
Program Development CDD/Admin Jun-21 $50,000 .25
16) On-Bill Financing LED
Lighting Retrofits (CIP) Admin/Public Works Dec-20 .20 0.30 .20 0.30
17) Formalize Solid Waste
Program in the Utilities
Department
Utilities Jun-21 .50 .10
18) Municipal Solid Waste
Reduction Plan
19) Municipal Operations
Climate Action Plan
Utilities
Admin/PW
Jun-21
Jun-21
$25,000
$45,000
.10
.20
20) Major Facility Maintenance
(Hydration Station and Pool
Thermal Cover)
Public Works Ongoing $33,000 .01
21) Open Space Preservation Admin/PR/PW Ongoing $100,00
0 .25 $150,000 .25
22) Open Space Maintenance Admin/PR/PW Ongoing $40,000 .25 $40,000 .25
23) Urban Forest Master Plan PW Jun-21 $35,000 .10 .1
24) Sequestration Study and
Carbon Farming Pilot Program Admin/PR Jun-21 $35,000 .20 .1
25) California Re-Leaf Grant
Implementation Admin/PW Dec-19 $24,000
26) Urban Forest Augmentation PW Ongoing $175,79
7 .50 $175,000 .50 42Packet Page 52
MAJOR CITY GOALS
CLIMATE ACTION
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completio
n Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
27) City Hall EV Chargers Admin/PW Dec – 20 $5,000 .20 $45,000 .20
Adaptation and Resilience
28) Community Climate
Vulnerability Assessment and
Safety Element Update
CDD/Admin/Fire/P
W Jun-21 $432,250 0.25 .50
29) Hazard Mitigation Plan Fire/Admin/PW Dec-21 $12,000 0.10 $10,000 <.10
30) Community Wildfire
Protection Plan Fire Dec-21 $12,000 0.10 $10,000 <.10
31) Emergency Response Plan Fire Dec-21 $25,000 0.10 $10,000 .10
32) Ready Set Go Outreach Fire Ongoing $12,000 0.10 $10,000 .10
33) Urban Fuel Reduction Plan
Development Fire Ongoing $12,000 0.10 $10,000 .10
34) Wildland Urban Interface
Open Space Fuel Reduction Fire / PR Ongoing $12,000
$312,250
0.10
0.20 $10,000
.10
35) Stormwater Business Plan Admin / Utilities Jun-20 $20,000 0.10
Total $1,338,50
0 4.40 $320,79
7 2.30 $128,00
0 2.20 $15,589,00
0 2.60
Total Investment per Fiscal Year $1,679,297 $15,727,000
Note – the Community Vulnerability Assessment and Safety element value of $432,250 is dependent on successful award of a Caltrans SB1 grant; the
Wildland Urban Interface Open Space Fuel Reduction value of $312,250 is dependent on a successful award of a CalFire grant.
43Packet Page 53
MAJOR CITY GOALS
CLIMATE ACTION
DESIRED OUTCOMES AND MEASURES
The desired outcome of the work program is to:
• Build organizational and community capacity and processes for substantial, continued, and effective climate action by hiring
two CivicSpark Fellows, establishing a Climate Internship Program, re-organizing the Green Team, and through sustained
support for the SLO Climate Coalition and the SLO Green Business Network.
• Adopt the Climate Action Plan Update and implement priority measures to lay the foundation for achieving carbon neutralit y
by 2035. The key measurements in this case are adopted sector-specific reduction targets within the community-wide GHG
inventory and an adopted, feasible path to achieve them. With sixteen years remaining until 2035, on average the community
should be reducing GHG emissions by approximately 15,000 metric tons per year on an annualized basis. It should be noted
that reductions will not necessarily be linear on a year-over-year basis; the trendline over time should indicate how we are
tracking with overall targets. This work scope includes a GHG Inventory update in 2020.
• Assess, plan, and implement measures now to enhance the community’s resilience to the impacts of climate change by
addressing the increased frequency and intensity of flood, fire, and drought through adoption of the Local Hazard Mitigation
Plan and Safety Element of the General Plan. 44Packet Page 54
MAJOR CITY GOALS
SUSTAINABLE TRANSPORTATION
GOAL STATEMENT
Enhance accessible regional transit, bicycle, and pedestrian mobility to promote a transition to a car-free
or shared-car lifestyle and to reduce greenhouse gases.
ALIGNMENT WITH THE CITY COUNCIL’S VISION:
This action plan implements multimodal transport projects and programs that have shown the ability to
shift mobility from single occupant vehicles to active and shared transportation modes, providing for a
sustainable and diverse circulation system consistent with the City’s General Plan mode split objectives.
Infrastructure and programs under this action plan will foster progress of the overall vision of transitioning
the City away from a predominantly auto-orientated community towards a more sustainable future of
transport that supports the City’s growth while reducing vehicle miles traveled and greenhouse gas
emissions.
RESPONSIBLE DEPARTMENT
The Public Works Department is the lead on this goal with support from several other departments including Administration, Office of Sustainability
and Economic Development, and Community Development.
PROPOSED WORK SCOPE.
Key Activities of the work scope include:
A. Create safe and enhanced walking and biking opportunities
1) Maintenance. Maintain existing streets, sidewalks, multi-purpose paths, and bike facilities. This is accomplished through Capital
Annual Asset Maintenance funds, primarily funded by the Local Revenue Measure and the State’s Road Repair and Accountability
Act of 2017 (SB 1).
2) New Construction. Construction of new facilities to provide safer corridors for pedestrians and bicyclists, and that provide
important connections for vehicles. Projects include the Anholm Neighborhood Greenway and the Railroad Safety Trail. The
Anholm Neighborhood Greenway creates a vital multimodal link between Downtown and the Neighborhoods north of Foothill,
including safer routes to Bishops Peak and Pacheco Elementary Schools. The signalized crossing at Foothill/Ferrini and protected
lanes along the rest of the route should make this connection approachable for a broader range of ages and ability levels,
BICYCLE PROTECTED INTERSECTION 45Packet Page 55
MAJOR CITY GOALS
SUSTAINABLE TRANSPORTATION
increasing bike and pedestrian mode share. The Railroad Safety Trail improvements connect Cal Poly and adjacent neighborhoods
with Downtown and existing trail terminus at the Railroad Station.
3) Innovative Infrastructure. Construction of bicycle protected intersections at Madonna & Dalidio, LOVR & Froom, and S. Higuera
& Prado. As shown in the image above, bicycle protected intersections provide a higher level of access with less vehicle conflicts.
4) Pedestrian Safety at Night. Construction of priority street lights and implementation of a grass-roots program to provide low-cost
illumination for walkers in dark areas of town.
5) ADA Improvements. Continue to upgrade and install ADA ramps in concert with city paving projects. Of the city’s 2,436
intersection crossing locations, 22% do not have any ADA ramp, and 50% have ramps which do not meet current ADA standards.
Ramps will be installed as paving funds are available.
6) Pedestrians. Pedestrian programs in this Goal include enhanced focus in the Active Transportation Plan, a new pedestrian signal
at Broad & Woodbridge, as noted in the South Broad St. Corridor Plan and recommended by the Active Transportation Committee,
education and outreach for walkers in low-illumination areas, and ongoing sidewalk maintenance.
B. Infrastructure Supporting Housing and Reducing Vehicle Miles Traveled.
1) Prado Road Interchange. A key project in this category is the Prado Road Interchange. The Prado Road Interchange is one of the
most significant transportation projects in the City’s near-term horizon. It provides a key east-west corridor linking housing with
retail, jobs and other amenities, and is part of the long-range vision linking Madonna Road to Broad Street via the eventual Prado
Road extension (not in this Financial Plan). The Prado Road Interchange and the Prado Road Bridge Replacement just west of South
Higuera will be “Complete Streets” with physically-separated facilities for bicycles and pedestrians. In addition, the project reduces
vehicle miles traveled by providing a more direct route for travelers. The interchange and bridge replacement projects are
scheduled to begin construction in 2021 under the scope of this work program.
C. Enhancing Transit Services
1) Continued Service. The Transit program intends to continue service to approximately 1 million riders per year, and, provide a
mobility option for those who cannot or do not drive, and those who choose transit as their choice of travel.
2) Replacement of Vehicles with Electric. Key programs for the next year include a plan to replace aging vehicles, a plan to implement
electric busses into the fleet, a renewal of the agreement with Cal Poly, and exploration of an electric downtown shuttle. The latter
item will require analysis regarding reliability, safety and other factors.
3) Increased Ridership. Enhance marketing program to seniors, K-12 students and working commuters to increase ridership by 5%. 46Packet Page 56
MAJOR CITY GOALS
SUSTAINABLE TRANSPORTATION
4) Continued Partnerships. Continue on-time performance and coordination with RTA.
D. Emerging Trends and Technology
1) Study of New Transportation Trends. This is a critical area, in that how people travel has been heavily impacted by technological
changes over the last several years. Rideshare services, bikeshare, scooters and other personal devices, have radically changed
travel patterns. Therefore, under this priority, staff intends to thoroughly investigate various models and determine, with Council
direction, the most appropriate array of choices for residents and visitors of San Luis Obispo.
2) Updated Neighborhood Traffic Management Policy. In addition, staff will update the Neighborhood Traffic Management Policy
to provide a more streamlined process, complete the Active Transportation Plan (which will include a first-ever Pedestrian Element
and innovative public engagement), and work with several partners, including SLOCOG, Parks and Recreation, Police Department,
Downtown SLO, advocacy groups, Cal Poly, and neighborhood groups, to determine if an ‘Open Streets’ event in San Luis Obispo
is a viable option. These events have been implemented across North and South America, and create, at least for one day, a linear
park, a community gathering event, an opportunity to explore neighborhoods and businesses, and other benefits.
3) Continued Education. The program will continue education and outreach in collaboration with the Police and Parks and Recreation
Departments and Bike SLO County. This partnership has implemented such programs as the Safety Bike Light Giveaway, the Bike
Rodeo, coordination with Bike to Work/School Month, Walk Your Child to School Week, and other events.
The Action Plan & Cost Summary table below only represents a fraction of the projects and programs that pertain to sustainable transportation
over the next five years capital expenditures to advance sustainable transportation is estimated at $17.6 million from the general fund, $20.8
million from transportation impact fees, and more from Regional Funding Sources and Direct Developer Contributions.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Additional Significant Operating Budget Change – NO
While significant capital investments will be required to achieve this Goal over the course of this financial plan, current staffing resources are
adequately paired with the scale of the action program.
47Packet Page 57
MAJOR CITY GOALS
SUSTAINABLE TRANSPORTATION
ACTION PLAN AND COST SUMMARY
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Creating Safe Bicycling &
Walking Opportunities
Reconstruct & Resurface Streets Public Works Ongoing $22,500 $2,575,000 $22,500 $1,600,054
Complete Broad Street Bike/Ped
Signal at Woodbridge.
(Traffic Impact Fees &
Infrastructure Investment Fund)
Public Works 2020 $9,000 $200,000
$70,000
Perform maintenance on
pedestrian & bicycle paths
Public Works Ongoing $9,000 $9,000 $79,000
Construct sidewalk replacements
& new installations
Public Works Ongoing $9,000 $46,000 $9,000 $89,000
Continue to implement Vision
Zero thru the Annual Traffic
Safety & Operations Program
Public Works & PD Ongoing $22,500 $22,500
$22,000
Continue Construction of the
Railroad Safety Trail.
(Traffic Impact Fees, Grant, &GF)
Public Works,
Union Pacific
Railroad, Public
Utilities
Commission, &
CalTrans
Ongoing $9,000 $570,000 $9,000 $150,000
$3,240,000
Construct Anholm Greenway
Phase 1 & 2
(Grants, SB1, & GF)
Public Works,
Parks & Rec., CDD,
CalTrans.
2019 $9,000 $400,000
$995,894
$9,000 $800,000
Construct California & Taft
Roundabout.
(Traffic Impact & Mitigation Fees)
Public Works, City
Attorney’s Office
2020 $22,500 $2,300,000
$60,000
$0 48Packet Page 58
MAJOR CITY GOALS
SUSTAINABLE TRANSPORTATION
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Construct Bicycle Protected
Intersections at:
1) Madonna & Dalidio
2) LOVR & Froom
3) Prado & Higuera
(Traffic Impact & Mitigation Fees
and Direct Developer
Contribution)
Public Works,
CDD, CalTrans, &
US Postoffice,
2019-2021 $45,000
$300,000 $45,000
$1,000,000
Construct miscellaneous bicycle
facilities improvements from the
Bicycle/Active Transportation
Plan
Public Works &
Bike SLO County
Ongoing $9,000 $100,000 $9,000 $100,000
Construct New Street Lights &
Low-Cost Personal Safety
Initiatives.
Public Works & PD Ongoing $9,000 $75,000 $9,000
$75,000
INFRASTRUCTURE SUPPORTING
HOUSING & VMT/GHG
REDUCTION
Complete Prado Road
Interchange Environmental
Public Works,
CDD, Caltrans,
2020 $67,500 $850,000
$500,000
$157,500 $1,500,000 49Packet Page 59
MAJOR CITY GOALS
SUSTAINABLE TRANSPORTATION
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Review & Construction
Documents
(Traffic Impact & Mitigation Fees,
Direct Developer Contribution,
County Tax Share Funds, &
SLOCOG Grants)
SLOCOG, County
of SLO, San Luis
Ranch
Construct the Prado Road
Interchange (overpass and NB
Ramps)
(Traffic Impact & Mitigation Fees,
Direct Developer Contribution,
County Tax Share Funds, &
SLOCOG Grants)
Public Works,
CDD, Caltrans,
SLOCOG, County
of SLO, San Luis
Ranch
2021-2023 $112,500 $26,000,000
Complete Prado Creek Bridge
Environmental Review &
Construction Documents
(Traffic Impact Fees & Grants)
Public Works &
CalTrans
2019 $22,500 $400,000
Construct the Prado Creek Bridge
(Traffic Impact Fees & Grants)
Public Works 2020-2021 $90,000 $9,000,000
Construct LOVR Spur of the Bob
Jones Bike Path
(Traffic Impact & Mitigation Fees
and Direct Developer
Contributions)
Public Works, San
Luis Ranch, Froom
Ranch
2021 $9,000 $200,000 $22,500 $2,000,000
ENHANCING TRANSIT SERVICES
Develop Plan to Replace Aging
Fleet
Public Works,
SLOCOG, & RTA
$9,000 $9,000 50Packet Page 60
MAJOR CITY GOALS
SUSTAINABLE TRANSPORTATION
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Complete University Transit
Service Agreement with CalPoly
Public Works &
CalPoly
$9,000 $9,000
Investigate Electric Downtown
Shuttle Service
Public Works $18,000 $18,000
Augment Ridesharing Services
(Parking Enterprise Funds)
Public Works,
SLOCOG, RTA
$18,000 $18,000
Enhance Transit marketing to
seniors, K-12 students, and
working commuters; and with Cal
Poly, to increase ridership 5%
Public Works $18,000 $18,000
Continue 98% On-Time
performance with Short Range
Transit Plan
Public Works $22,500 $22,500
Continue service coordination
with RTA to improve mobility for
transit users
$22,500 $22,500
Emerging Trends & Technology
Complete Active Transportation
Plan
Public Works,
CDD, Bike SLO
County
2020 $67,500 $100,000
Complete Update of
Neighborhood Traffic
Management Policy/Guidelines
Public Works $67,500
Complete Update of Traffic
Impact Study Guidelines
Consistent with SB 743
Public Works, CDD $22,500
Investigate Potential Shared
Mobility Policy
Public Works,
Admin, & PD
$9,000 $9,000
Investigate “Open Streets”
events with LA CicLAvia
Public Works, SLO
County, SLOCOG
$9,000 $9,000 51Packet Page 61
MAJOR CITY GOALS
SUSTAINABLE TRANSPORTATION
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Continued Installation of Electric
Vehicle Charging Stations
Public Works,
CDD, Admin, PGE
$9,000 $9,000
Continued Active Transportation
Education, Outreach, & Activism
Public Works $22,500 $22,500
Total
$598,500 $ 9,691,894
$693,000 $44,688,054
Total Investment per Fiscal Year
-
$10,290,394
$45,381,054
All Transportation projects include public outreach in accordance with the City’s adopted Public Engagement Manual a t a minimum and often expanded above and beyond based
on project complexity and/or controversy.
Transportation projects are also communicated & coordinated as appropriate thru partnerships such as Bike SLO County & Downto wn Assoc. as well as respective advisory bodies
such as the
DESIRED OUTCOMES AND MEASURES
1. Begin Construction of Prado Road Interchange
2. Begin Construction of Prado Road Creek Bridge
3. Begin Construction of Railroad Safety Trail and Foothill/California Crossing Improvements
4. Complete Anholm Neighborhood Greenway Phases 1 & 2 Completed
5. Complete California & Taft Roundabout Completed
6. Significant progress towards the City’s Mode Split Goals
a. Bicycle Volumes Increase at a greater rate than Automobiles
b. Pedestrian Volumes Increase at a greater rate than Automobiles
c. Transit Ridership Increase at a greater rate than Automobiles
7. Reduce average Vehicle Miles Traveled (VMT) and Greenhouse Gas Emissions 52Packet Page 62
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
GOAL STATEMENT
Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on
efficiencies, strategic economic development, unfunded liabilities, and infrastructure
financing (Funding the Future).
ALIGNMENT WITH THE CITY COUNCIL’S VISION:
The approach to Fiscal Sustainability and Responsibility is multi-pronged, concentrating not
only on fiscal matters, but economic development, climate action, emergency preparedness,
and organizational effectiveness. It therefore incorporates such key values as sustainability and
diversity by taking an all-encompassing approach to local and regional partnerships and a
holistic look at fiscal sustainability. The approach is informed by past action, policies, and
efforts and will pursue an implementation that is sustainable into the future.
RESPONSIBLE DEPARTMENT
The Finance Department is leading the goal efforts with assistance from Human Resources, Administration, Fire, and the new Community Services
Group which represents Community Development, Parks and Recreation, Public Works, and Utilities.
PROPOSED WORK SCOPE.
The scope of the project consists of three key areas: 1) focus on efficiencies by doing business differently, 2) economic development, 3) continued
work to address unfunded liabilities and 4) public engagement to address public infrastructure funding. In the Spring of 2019, the City launched
its plan to reorganize to become the Organization of the Future. The first phase covers this financial plan period and will include thoughtful
departmental reorganizations and new ways of doing business to achieve efficiencies.
WORK PROGRAM CONSTRAINTS AND LIMITATIONS
There are a variety of factors that can influence this work program and limit its progress. Below are factors that could constrain or limit the
program, leading to adjustments as the two-year program effort evolves.
1. Changing actuarial or other assumptions by CalPERS that could result in additional increases to be borne by participating member agencies.
2. Changing actual or forecasted revenue.
3. Inherent risk of economic fluctuation such as inflation.
4. Good faith negotiations with labor groups that are required prior to changing employee compensation and benefits. 53Packet Page 63
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
5. The feasibility of the local tax measure not being renewed and lack of community support for infrastructure funding.
6. The challenges associated with launching new ways of doing business and the time it may take to achieve the same.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Additional Significant Operating Budget Change – Yes.
ACTION PLAN AND COST SUMMARY
Greyed out dollars show existing budgeted resources allocated to tasks and bold show new resources being funded through SOBCs.
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FT
E
FISCAL HEALTH
1) Continue pension payments from
one-time funding toward unfunded
liability. Monitor progress in
reduction of unfunded liability.
Finance Ongoing $15,000
$3,500,000
.10 $15,000
$3,500,000
.10
2) Establish a 115 Pension Trust
Fund, related funding levels, and
use policy. Provide monitoring
through the Investment Oversight
Committee.
Finance 2/15/2020 $30,000
$2,300,000
.20 $15,000
$2,300,000
.10
3) Continued implementation of the
Fiscal Health Response Plan that
address short- and long-term
financial challenges.
Finance 6/30/2021
4) implement quarterly financial
reports to monitor fiscal
performance including performance
measures.
Finance – City
Departments
Ongoing $10,000 $10,000 54Packet Page 64
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FT
E
5) Continue to implement and track
operational efficiencies including
alternative service delivery, best
management practices, and cost
containment measures that
preserve the effectiveness of City
services and operations.
Administration Ongoing
6) Continue to monitor legislation
that could impact City revenues and
expenditures.
Finance Ongoing $9,000 .10 $9,500 .10
7) Closely monitor cannabis related
income and expenditures.
Finance Ongoing $30,000 .30
8) Continue to closely monitor
liability and workers compensation
costs with a focus on root cause
analysis and prevention.
Human
Resources
Ongoing $58,000 .75 $58,000 .75
9) Monitor changes in market
compensation, including impacts of
minimum wage increases, and
present comparative data to
Council.
Human
Resources
8/30/2020 $16,000 .25
11) Negotiate labor agreements
consistent with Fiscal Health
Response Plan objectives with the
San Luis Obispo City Employees
Association and the San Luis Obispo
Police Staff Officers Association.
Human
Resources
8/30/2019 $8,000
$40,000
.10
12) Create an Equipment
Sustainability Fund for Public Safety
to forecast and budget for
replacement of safety equipment
Police
Fire
Ongoing
$48,650
$346,938
$46,032
$353,876
55Packet Page 65
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FT
E
that has expired or become
damaged.
13) Hire entry-level fire recruits to
help reduce long-term pension
obligations for non-PEPRA
employees.
Fire
Ongoing
$32,000
$32,000
14) Implement injury reduction
programs in the Fire Department to
reduce costs associated with job-
related injuries.
Fire 12/31/2021 $40,000 $18,000
15) Implement Online reporting for
Police Department
Police Ongoing $13,600 $13,600
16) Hire an additional police officer
to backfill for a school district
funded School Resource Officer
Police 06/2021 $165,827 $171,610
17) Fund a new Cannabis Detective
Position using Cannabis Fees
Police July 2019 $198,182 $195,942
18) Purchase specific equipment
related to Cannabis Detective
Police July 2019 $17,000
19) Fund Police field service
technician and a Downtown
Sergeant with hotel land lease
revenues
Police July 2019 $233,787 $227,695
ORGANIZATIONAL EFFECTIVENESS
1) Fully implement MOTION ERP,
HCM, and Budget modules.
Develop dashboards regarding
organizational effectiveness
including diversity metrics.
Human
Resources
Finance
2/28/2020 $60,000
$75,000
.75
1.00
2) Implement Phase 1 of the
Organization of the Future to
Community
Services
6/30/21 $225,000
$225,000
56Packet Page 66
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FT
E
achieve organizational efficiencies
through thoughtful reorganizations.
Could include new positions or
reclassifications or consultant
services. Year one of this effort will
inform resources needed.
(CDD, Parks and
Rec, PW, and
Utilities)
tbd tbd
3) Identify barriers to diversity and
inclusion within organizational
systems in support of the
Organization of the Future.
Human
Resources
Ongoing $6,500
$20,000
.10 $6,500
$20,000
.10
4) Expand recruitment outreach
and methods to reach diverse
sources.
Human
Resources
Ongoing $65,000 1.00 $65,000 1.00
Economic Development
1) Downtown Vitality (PBID, Public
Art, Parking Structures, Hotels,
Housing)
Administration Ongoing $86,819
.20
$89,746
.20
3) Development and
implementation of a business
attraction and retention program,
funded by SB 1090, will cost
$70,000 in contract services and is
estimated to take 20% of the
Economic Development Manager’s
time.
Administration Ongoing $22,000 .20 $24,000
$70,000
.20
4) Updated the EDSP to include
business-based strategies to
address emergency preparedness,
Administration 2/28/20 $22,000
$50,000
.20 $24,000 .20 57Packet Page 67
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating
Capital
Operating
Capital
Expense FTE Expense FTE Expense FTE Expense FT
E
climate action, etc, will cost
$50,000 in contract services and is
estimated to take 20% of the
Economic Development Manager’s
time.
5) Increase revenues from property,
sales, and Transient Occupancy Tax
(TOT) by implementing strategies in
the EDSP.
Administration Ongoing .20 .20
6) Continue partnership with SLO
HotHouse to create and expand
economic activities.
Administration Ongoing $11,000
$50,000
.10 $12,000
$50,000
.10
EMERGENCY PREPAREDNESS
1) Hazard Mitigation Plans
Fire Ongoing
2) CDD safety update
Community
Development
3) Assessment of smoke toll on
tourism, outdoor activity, etc.
4) Recovery Planning process - Plan
- Respond - Recover
Fire Ongoing $60,000 $60,000
INFRASTRUCTURE FINANCING $60,000 $60,000
1) Asset modeling - Cal Trans grant
$90K
Public Works Spring 2020
2) Funding the Future Campaign
(funding included in previous
budget)
Administration Spring 2020
Total Investment per Fiscal Year $7,109,303 5 $ 0 $6,888,501 3.30 $ 0 58Packet Page 68
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
Desired Outcomes and Measures
The work program was designed to align with the efforts underway with the City’s Fiscal Health Response Plan which consider the development
of new revenue, thoughtful reorganizations and expenditure reductions, and employee concessions. The approach should achieve a budget that
addresses the community’s goals and allows the organization to deliver core services in the long run with the needed resources. The individual
components address:
1. Down payment of the City’s unfunded pension liability and funding for a 115 Pension Trust Fund.
2. Economic Development efforts to keep San Luis Obispo as an attractive place to do business, visit, and shop.
3. Begin the efforts for Funding of the Future
4. Considers thoughtful reorganizations to further streamline service delivery and organizational effectiveness.
5. Will implement the final phase of the Motion project and turn to long-term support of the new ERP system.
6. Addresses the efforts needed for the Cannabis industry to begin business in San Luis Obispo successfully. 59Packet Page 69
MAJOR CITY GOALS
DOWNTOWN VITALITY
GOAL STATEMENT
Support the economic and cultural heart of the City with attention to safety, maintenance, infrastructure and
amenities.
ALIGNMENT WITH THE CITY COUNCIL’S VISION:
The “Downtown Vitality” Action Plan directly aligns with the City’s Vision Statement of, “a dynamic community
embracing its future while respecting its past with core values of civility, sustainability, diversity, inclusivity,
regionalism, partnership, and resiliency”. The variety of projects and services included in the work plan touch on all
aspects of the vision. Downtowns have long been places where community members peacefully gather for enjoyment
and celebrations and supporting an active and vibrant downtown through programs like the implementation of our
Downtown Concept Plan and Mission Plaza Concept Plan will help to ensure this continues. Sustainability is
highlighted throughout the Action Plan from the ongoing care of the natural environment to the enhancement of
pedestrian amenities to improve walkability. Diversity and inclusivity are reflected by expanding programs that
provide a welcoming atmosphere, a variety of services and experiences, a safe setting for all those in the downtown,
as well as through the activation of public spaces where all community members are invited to participate in social,
art and cultural events. Regionalism is included in the support of the opening and operations of our new downtown
hotels and coordination with our Tourism Business Improvement District (TBID) efforts to ensure a strong tourism
economy in the City as well as the region. Partnership is expressed through close collaboration with Downtown SLO
(DSLO) and implementation efforts should a new downtown Property-Based Business Improvement District (PBID) be
formed. Finally, resiliency can be seen through action items like the development and implementation of a “Shop Local” program and the
implementation of updates to the City’s Economic Development Strategic Plan.
RESPONSIBLE DEPARTMENT
The “Downtown Vitality” Major City Goal is led within the City Administration Department by the Economic Development Manager and with direct
implementation support from the Community Development, Parks and Recreation, Police, Public Works and Utilities departments.
PROPOSED WORK SCOPE.
The proposed work scope has a variety of tasks that fall into four main categories based on the goal statement:
1. Safety
2. Maintenance
3. Infrastructure
4. Amenities 60Packet Page 70
MAJOR CITY GOALS
DOWNTOWN VITALITY
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Significant investment will be required to successfully implement this goal, however, most resources can be made available by prioritizing
downtown related work through existing budget resources. Some new investment is required and is detailed below as well as in the work plan
summary:
1. New funding to support the City’s participation in the downtown PBID - $62,023 in 2019-20 and $62,023 in 2020-21 (+$22,712 annually
from the Parking Enterprise Fund)
2. Development and implementation of a Shop Local Program through SB 1090 funds - $30,000 in 2019-20
3. Development and implementation of a business vitality program through SB 1090 funds - $70,000 in 2020-21
4. Expand Downtown Trip Reduction & Parking Demand Reduction Programs - $40,000 (Parking Enterprise Fund)
ACTION PLAN AND COST SUMMARY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
SAFETY
Focus on providing Downtown Bike Patrol
and Community Action Team Officers
including social worker support
Police Ongoing $661,605 4.00
Fund Police Field Service Technician and a
Downtown Sergeant with hotel land lease
revenues
Police Jul-19
Installation of Downtown Security Project
Phase 2 (Tier 2)
Public Works Dec-20
$438,000
Install security cameras in Mission Plaza Police, IT,
Public Works
Sept-19 $25,000
Update and refresh Direct Giving (Meter)
Program with Downtown SLO, United Way
and 40 Prado
Administration,
Public Works
Dec-19 $5,700 0.05
MAINTENANCE
Continue to provide sidewalk pressure
washing services
Public Works Ongoing $13,000
13,000 61Packet Page 71
MAJOR CITY GOALS
DOWNTOWN VITALITY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Continued maintenance of downtown
planters
Public Works Dec-19 $10,000
$10,000
Work with the City's Special Events Team
and Downtown SLO on a viable recycling and
compost program for large events occurring
in Mission Plaza and downtown
Utilities Ongoing
Sidewalk and tree grate repair and
replacement
Public Works Ongoing $25,000
$25,000
Sidewalk tile replacement Public Works Ongoing $10,000
$10,000
Enhanced downtown tree pruning Public Works Ongoing
1.00 $40,000
1.00 $40,000
Continue to explore options to reduce white
fly population and fly/pigeon issues
Administration Ongoing $7,500 0.10
$6,000 0.10
Host Creek Clean Up Day in the downtown Administration Ongoing $1,500 0.02
$1,500 0.02
INFRASTRUCTURE
Downtown Renewal Project Public Works Jan – 20
Jan - 21
$400,000 $640,000
Implement designated pick up and drop off
zones in downtown for ridesharing (part of
Active Transportation Plan and Access &
Parking Management Plan)
Public Works Dec-21
Explore use of shared mobility devices in
downtown (also included in Sustainable
Transportation Major City Goal)
Public Works Jan-21
Continue progress on a Higuera St. Parking
Structure and an Upper Monterey St.
parking district
Administration,
Community
Development,
Public Works
Ongoing $100,000 0.10
Parking Structure Facility Improvement
Program
Public Works Ongoing
$2,363,000
$1,284,000
Begin Construction on the Palm/Nipomo
Parking Structure
Public Works Winter
2020/21
$28,620,000
62Packet Page 72
MAJOR CITY GOALS
DOWNTOWN VITALITY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Replacement of Marsh St. bridge over San
Luis Creek
Public Works May-21 $6,400,000
Complete design of Cheng Park
rehabilitation
Public Works Dec-20 $50,000
AMENITIES
Activate public spaces in downtown through
events and programming such as pop-up
classes and temporary public art
Parks &
Recreation
Ongoing $20,000 0.20
Support Downtown SLO, property owners
and other organizations to activate vacant
retail spaces through pop-up shops,
activities, and events
Administration,
Parks and
Recreation
Ongoing
0.01
Support Downtown SLO tree lighting and
street banner programs
Administration Dec-19 $5,700 0.05
Work with Downtown SLO to update
downtown tile maps
Administration Aug-19 $2,290 0.02
$1,145 0.01
Explore options, including adjacent to
Bubblegum Alley, for additional public art
and creative place making
Parks &
Recreation,
Administration
Ongoing
Support the opening and operations of new
downtown hotels
Administration Ongoing $12,900 0.10
$12,900 0.10
Continue to Implement the Downtown
Concept Plan
Community
Development,
Public Works
Ongoing
Continue to Implement the Mission Plaza
Master Plan including the completion of the
preliminary design for the restroom
replacement project
Community
Development,
Public Works,
Parks &
Recreation
Oct-19
$45,000
$150,000
ECONOMIC DEVELOPMENT
63Packet Page 73
MAJOR CITY GOALS
DOWNTOWN VITALITY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Support the implementation of a Property-
Based Business Improvement District (also
included in Fiscal Health and Sustainability
Major City Goal)
Administration Sep-19 $11,450 0.10
$11,450 0.10
Continue City partnerships for economic
development and business support in
downtown including SLO HotHouse,
Chamber of Commerce programs, etc.
Administration
Ongoing
$11,450
$43,100
0.10
$11,450
$45,000
0.10
Ongoing downtown business support Administration Ongoing $22,900 0.20
$22,900 0.20
Enhance Downtown Trip & Parking demand
reduction programs.
Public Works Ongoing $40,000 0.10
$40,000 0.10
Create a Park & Walk informational
campaign in coordination with Downtown
SLO
Public Works,
Administration
Mar-20 $11,450
0.10 $11,450
0.10
Create and implement a Shop Local program
(also included in Fiscal Health and
Sustainability Major City Goal)
Administration Oct-20 $11,450 0.10
$11,450 0.10
Develop and implementation of a business
attraction and retention program
Administration Jun-20
$22,900 0.20
Update Economic Development Strategic
Plan and implement actions specific to
downtown (also including in Fiscal Health
and Sustainability Major City Goal)
Administration Feb-20 $22,900
$40,000
0.20
$22,900 0.20
Total
$1,064,895 6.55 $9,298,000 0 $254,045 2.33 $31,247,000
Total Investment Per Fiscal Year
$10,362,895 $31,501,045
64Packet Page 74
MAJOR CITY GOALS
DOWNTOWN VITALITY
DESIRED OUTCOMES AND MEASURES
Downtown San Luis Obispo is the community’s center and heart. It serves as a vibrant social and commercial center. Downtown is home to
numerous businesses that provide shopping, dining, special events, cultural and social activities, and is a permanent home to many City residents
as well as a temporary home to our visitors. The goal of Downtown Vitality is to deliver on the City’s responsibility in supporting the economic and
cultural epicenter of San Luis Obispo.Through implementation of the Downtown Vitality Action Plan, community members can expect an increased
level of security in the downtown through the addition of infrastructure to safeguard participants at large events, equipment that provides eyes
on the ground at all hours, safety personnel and a social worker that are able to connect individuals struggling with basic needs. Bike officers will
provide a visible and active presence in the downtown, interfacing with visitors, community members and the homeless. The Downtown Sergeant
will coordinate resources between the Police Department, City Departments as well as community partner s. The City will continue to provide
public awareness and its support of homeless services in partnership with Downtown SLO through a refresh of the Direct Giving Program.
Through the Action Plan, the City will continue to respond to the changing needs of people coming to and from the downtown, whether it be for
better sidewalks and pedestrian access, additional parking, or amenities that support shared mobility. A downtown that is clean and maintained
– both the built and natural environment – will provide for a better experience for those living, visiting and working there. In addition, the City is
investing in resources that will address nuisances caused by insects and birds and through a new program, will engage community members in
caring for the downtown through participation in beautification activities and a creek clean up. Installation of new infrastructure and the repair of
aging infrastructure is a key component to the future health of the downtown.
Expanding on the idea of creative placemaking will make the downtown appealing and keep it relevant with public art, lighting beautification, new
street banners and refurbished directional signage. As we continue to see increasing competition from other cities in our region, we can ensure a
stronger tax base with these new amenities.
The City has identified various projects and resources that support downtown business success and the fiscal health of the City. A Property Based
Improvement District will provide an elevated level of clean and safe services, as well as an expanded Ambassador Program that is a benefit to
locals and tourists coming into the downtown and staying at hotels that will be coming online in 2019. With the closure of Diablo Canyon Power
Plant and the changing habits of consumers, we need a downtown core that is increasingly dynamic and active. The development of a Shop Local
program and the implementation of our updated Economic Development Strategic Plan will ensure that the City is proactive in t he attraction and
retention of businesses in the downtown, so they are not just surviving but thriving. Continuing to work with our nonprofit, education and business-
centric partners is essential in identifying innovative talent and encouraging entrepreneurs to grow their new, creative ideas in the heart of
downtown, adding to the diversity of our City’s existing social and economic fabric.
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FINANCIAL PLAN OVERVIEW
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Budget at a Glance
Budget at a Glance – General Fund
The City of San Luis Obispo 2019-21 Financial Plan provides the detailed approach to address community
priorities in a fiscally responsible manner. The Financial Plan is aligned with the City Council’s Major City
Goals, supports the core services of the City, and maintains and replaces its assets. The Financial Plan also
provides clear direction and authority to spend funds appropriated according to the services outlined. This
Budget at a Glance concentrates on the General Fund. You can find information pertaining to the Water
and Sewer Utilities, Parking, and Transit in the section “Business Activities” section of the budget.
The Financial Plan is centered around the 2019-21 strategic priorities (Major City Goals) that were
developed through extensive community outreach and input, resulting in five major city goals that
provide for overlapping efforts in achieving the desired outcome.
67 Packet Page 79
Budget at a Glance
Where the Money Comes From
Revenue – General Fund
Similar to most municipalities in California, various tax revenues
are the largest source of revenue for the General Fund, financing
the majority of the services. In the first year of the 2019-21
Financial Plan, the City has budgeted a new tax source to its
portfolio with the passing of the Cannabis tax voted in by the
community in November 2018.
Thought taxes make up the majority of the revenue, user fees for
services are another important income for the City; in 2019-20,
revenue form this source is anticipated at $11 million.
Taxes & Franchise Revenue
Projected
FY 20
Projected
FY 21
Tax & Franchise Revenue
Sales & Use Tax $ 25,899 $ 26,266
General $ 17,675 $ 17,940
Public Safety (Prop 172) $ 385 $ 369
Local Revenue Measure $ 7,840 $ 7,957
Property Tax $ 17,921 $ 18,638
Property Taxes $ 12,477 $ 12,976
Real Property Transfer Tax $ 380 $ 395
Property Tax In Lieu Of Vlf $ 5,064 $ 5,266
Transient Occupancy Tax $ 8,033 $ 8,133
Lodging $ 7,757 $ 7,854
Homestays $ 275 $ 279
Utility Users Tax $ 5,854 $ 5,971
Franchise Fees $ 1,558 $ 1,589
Business Tax Certificates $ 2,942 $ 3,001
Cannabis $ 650 $ 1,500
Total Tax & Franchise Revenue $ 62,856 $ 65,097
(in thousand)
85%
15%Taxes
Fees for
Services
68 Packet Page 80
Budget at a Glance
User Fee and Charges
Fees for Services Projected
FY 20
Projected
FY 21
Police Services $ 742 $ 742
Fire Services $ 1,400 $ 1,416
Development Review $ 5,333 $ 5,526
Parks & Recreation $ 1,915 $ 1,946
General Government $ 560 $ 571
Cannabis $ 400 $ 750
Other Revenues $ 3,230 $ 2,036
Subventions & Grants $ 900 $ 900
Total Fees & Other Revenue $ 14,480 $ 13,787
(in thousand)
$60,724 $62,856 $65,097 $66,268 $67,435 $68,566 $11,215 $14,480 $13,787 $14,325 $14,621 $14,922
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Tax Revenue Fee Revenue
69 Packet Page 81
Budget at a Glance
What the Money is Spent On
Operating Budget- General Fund
The City of San Luis Obispo provides services to the community by incurring operating and capital
expenditures. With each service, the capital cost of any equipment, infrastructure or facility needed to
deliver the service must be considered in addition to the ongoing operation and labor cost of providing
the service.
Like most municipalities, the City is faced with balancing rising costs, limited resources, and providing
excellent levels of service to its citizens. To achieve this balance through the budget process, departments
undertake re-analysis of budget needs and endeavor to find economies and efficiencies that are expected
of a prudent budgeting process. Staff explore opportunities to increase efficiencies throughout the City’s
operations focusing on providing core services to the community.
The 2019-21 Financial Plan reflects the strategic approach to cost savings and ways to do business
differently (see Strategic Planning section).
The City’s annual operating budget for the General Fund totals
$65 million and includes 54 programs reaching from City
Administration to Building and Safety, Development Review,
Accounting, Purchasing, Emergency Response, Aquatics, Golf,
Senior Services, Police Patrol, Traffic Safety, Streets & Sidewalk
Maintenance, Transportation Planning, and the Urban Forest.
Operating Budget by Category
Category 2019-20 2020-21
City Administration $ 7,146,436 $ 7,369,051
City Attorney $ 677,237 $ 705,122
Community Development $ 4,798,760 $ 4,884,560
Finance $ 2,943,901 $ 3,169,190
Fire $ 13,019,071 $ 13,439,611
Human Resources $ 1,363,945 $ 1,332,060
Parks & Recreation $ 4,303,161 $ 4,448,221
Police $ 17,685,865 $ 18,669,167
Public Works $ 13,138,969 $ 13,309,803
Total $ 65,077,345 $ 67,326,785
77%
8%
9%6%Staffing
Contract
Services
Other OpEx
Transfer
70 Packet Page 82
Budget at a Glance
Program Enhancements
Program enhancements were included in the 2019-21 Financial Plan to address:
Major City Goals
Public Health
Thoughtful
Reorganizations
Combined Requests 2019-20 2020-21
One-Time Requests for 2019-21 $786,771 $527,797
Requests for Ongoing Enhancements $915,642 $1,091,793
Total Request $1,702,413 $1,619,590
11%
1%
7%5%
20%
2%
7%
27%
20%
City Administration City Attorney Community Development
Finance Fire Human Resources
Parks & Recreation Police Public Works
71 Packet Page 83
Budget at a Glance
Capital Budget – General Fund
The City’s 20-year capital budget is a plan that identifies projects,
needed funding, and timelines including the impact of multi-year, and
multi-department projects. Capital requirements are driven by the
need to maintain, upgrade, or replace existing ageing infrastructure,
meet industry standards, populations growth and invest in new capital
assets in alignment with the City’s major city goals and community
need.
The Capital budget allocation for the Financial Plan period from the General Fund totals $16.9 million and
includes projects such as bridge replacement, street rehabilitation, urban forest care, and playground
equipment.
Capital Expenditures
CIP by Fund (in thousand)
Projected
FY 20
Projected
FY 21
General CIP $ 934 $ 521
SB1 $ 818 $ 1,325
Local Revenue Measure CIP $ 3,642 $ 3,698
Fleet $ 593 $ 602
IT infrastructure $ 885 $ 904
Major Facility Replacements $ 516 $ 524
Infrastructure Investment Fund $ 1,900 $ 119
Total CIP Investment $ 9,288 $ 7,693
6%
11%
7%
43%
22%
11%
CAPITAL INVESTMENT BY FUND
Facilities
Information Technology
Fleet
Local Revenue Measure
Infrastructure Investment
General CIP
72 Packet Page 84
Budget at a Glance
Investment in Major City Goals Strategic Work Programs
For details on the individual objectives and work programs, please see the Strategic Priorities section.
General Fund Debt
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year FY 2020
2010 Lease Fire Truck (Apparatus) $128,738 $128,738 2020
2015 Lease Mobil Data Equipment Lease $44,291 $44,462 2020
2014 Lease Copiers $5,324 $5,347 2020
2016 Lease Fire Pumper & Street Sweeper $236,054 $240,067 2021
2017 Lease Dump Truck & Sweeper $343,021 $141,227 2023
2014 Energy Resources Conservation State Loan $323,347 $94,242 2024
2018 Lease Fire Truck $449,528 $146,131 2024
2012 Lease Revenue Refunding Bonds $3,230,000 $384,200 2030
2018 Refunding Bond $9,743,125 $969,097 2039
2014 Lease Revenue LOVR Overpass $6,805,000 $588,006 2045
Total General Fund Debt $21,308,428 $2,741,517
Total
Investment
$1.4 million
Total
Investment
$14 million
Total
Investment
$55 million
Total
Investment
$17 million
Total
Investment
$42 million
Housing Fiscal
Sustainability
Sustainable
Transportation
Climate
Action
Downtown
Vitality
73 Packet Page 85
Budget at a Glance
Total General Fund Budget
General Fund Reserve Levels Projected
FY 20
Projected
FY 21
General Reserve $ 10,184 $ 10,307
Revenue Stabilization $ 1,000 $ 1,000
Capital Reserve $ 500 $ 750
(in thousand)
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2019-20 2020-21
Operating Expenses Capital Expenses
Debt Expense Total General Fund
74 Packet Page 86
Local Revenue Measure
Local Revenue Measure (Half-Cent Sales Tax)
Introduction:
Attached are the proposed 2019-21 Local Revenue Measure operating and capital outlay
expenditures; which were recommended by the Revenue Enhancement Oversight Commission
(REOC) from input from the community, the Major City Goals established by the City Council,
updated revenue projections, and the funding priorities developed from the ballot language.
Revenue and Expenditure Forecast Highlights
• Revenue projections reflect slowed growth that is aligned with trends in other revenue
sources for the City and statewide. This forecast of revenues may change over time and
updates will be provided to the REOC and Council.
• Increase in the operating expenditures from previous years are due to increases in staffing
costs primarily driven by CalPERS retirement benefits.
• This trend will be monitored and re-evaluated with a focus to maintain consistent investment
in Capital Improvement Program.
Balance of Capital Versus Operating
Previous input from the community and REOC has been to prioritize Local Revenue Measure
funds for capital investments and historically expenditures have been approximately 60% capital
and 40% operating. Operating program costs are a necessary part of implementing capital
projects. In addition, operating programs deliver essential services that align with Local Revenue
Measure priorities. As such, it would not be sustainable to allocate all Local Revenue Measure
dollars to capital projects without related operating program support to implement the projects.
Moreover, consistent with REOC review, operational expenditures support objectives established
by the voters when the Local Revenue Measure was approved.
Based upon the recommendation by the REOC, expenditures were budgeted 70% for capital and
30% for operating. The balance of capital and operating costs for the 2019-21 Financial Plan are
listed below:
Capital Expenditure
Percentage
Operating Expenditure
Percentage
FY 2019-20 71% - $5,574,867 29% - $2,237,989
FY 2020-21 70% - $5,545,397 30% - $2,369,931
75 Packet Page 87
Local Revenue Measure
Local Revenue Measure Uses
Expenditures are broken into the following nine categories developed from the Measure G (Local
Revenue Measure) ballot language:
1. Open Space Preservation
2. Bicycle and Pedestrian Improvements
3. Traffic Congestion Relief/Safety Improvements
4. Public Safety
5. Neighborhood Street Paving
6. Code Enforcement
7. Flood Protection
8. Parks and Recreation/Senior Programs and Facilities
9. Other Vital Services and Capital Projects
Local Revenue Measure operating and capital outlay expenditures total $7.8 million in 2019-20
and $7.9 million in 2020-21. A detailed list of the projects and services funded through the Local
Revenue Measure for this financial plan is included below in Table 2. Specific projects include:
installation of six new street lights, funding of the wildland-urban interface fire fuel reduction in
the City’s open space, public access to the Miossi Open Space, the initial maintenance dredging
of Laguna Lake, pedestrian and bicycle pathway maintenance, downtown renewal projects,
traffic safety improvements, public safety technology upgrades, police patrol services, street
reconstruction and resurfacing of South Broad Street and the neighborhoods from Peach Street
to Bridget Street, between Santa Rosa Street and Highway 101, and Madonna Road to Vachell
Lane(between Devaul Ranch Drive and Prado Road), storm drain replacement, creek and flood
protection services, urban forest maintenance, and playground equipment replacement at Islay
Hill Park.
76 Packet Page 88
Local Revenue Measure
2019-21 Local Revenue Measure Uses
Table 1 provides a breakdown of the allocation of Local Revenue Measure Funding in the nine
categories for the Financial Plan.
Local Revenue Measure Categories 2019-20 2020-21 2-Year
Total
1. Open Space Preservation $ 436,474 $ 692,922 $ 1,129,396
2. Bicycles and Pedestrian Improvements $ 1,062,475 $ 813,923 $ 1,876,398
3. Traffic Congestion Relief (Safety
Improvements)
$ 119,598 $ 428,237 $ 547,835
4. Public Safety $ 2,036,141 $ 1,905,440 $ 3,941,581
5. Neighborhood Street Paving $ 2,083,017 $ 1,614,581 $ 3,697,598
6. Code Enforcement $ 324,863 $ 302,046 $ 626,909
7. Flood Protection $ 841,534 $ 847,282 $ 1,688,816
8. Parks and Recreation/Senior Programs
and Facilities
$ 835,834 $ 1,105,954 $ 1,941,788
9. Other Vital Services and Capital Projects $ 72,920 $ 204,943 $ 277,863
TOTAL $ 7,812,856 $ 7,915,328 $ 15,728,184
77 Packet Page 89
Local Revenue Measure
7%,
$1,129,396
12%,
$1,876,398
3%,
$547,835
25%,
$3,941,581
24%,
$3,697,598
4%
$626,909
11%
$1,688,816
12%
$1,941,788
2%,
$277,863
2019-21 LOCAL REVENUE MEASURE USES
(Operating and Capital $15.7M)
1. Open Space Preservation
2. Bicycles and Pedestrian Improvements
3. Traffic Congestion Relief (Safety Improvements)
4. Public Safety
5. Neighborhood Street Paving
6. Code Enforcement
7. Flood Protection
8. Parks and Recreation/Senior Programs and Facilities
9. Other Vital Services and Capital Projects
78 Packet Page 90
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
CG Description 2019-20 2020-21 2019-20 2020-21
Open Space
Maintenance 40,000 40,000 80,000 C
This project supports continued
implementation of the City’s adopted
Open Space Maintenance Plan. The
ongoing maintenance of all fifteen City
Open Space properties is premised on
the protection of natural resources,
including plants, animals, geologic and
historic features and the natural areas
themselves. Maintenance over the next
two years will focus on fuel-reduction of
the wildland-urban interface. Other
routine maintenance includes:
enhancement to existing trailheads,
maintenance and construction of
approved and sustainable trails and open
space facilities for passive recreation
purposes only, removal of illicit materials
and trails, improved user and natural
resource safety, land restoration and
stewardship projects, invasive species
treatment and control, erosion control
and stabilization, education of users via
patrols and community outreach.
Open Space
Acquisition 100,000 150,000 250,000 C
The City continues to actively pursue
land purchases and conservation
easements to enhance the greenbelt
around the City which protects
watersheds and maintains habitat
connectivity. This funding is largely
leveraged by grant funding. Over the
next two years, the City will focus efforts
on securing a conservation easement for
the Miossi Brothers La Cuesta Ranch,
which is the next phase of the project
following the acquisition of the 266-acre
Miossi Open Space in 2018-19.
Laguna Lake
Dredging and
Sediment
Removal
(including bank
stabilization)
150,000 350,000 500,000
The Laguna Lake Nature Reserve,
including Laguna Lake, is 344-acres of
City owned land. Laguna Lake is a
naturally occurring water body although
the lake and surrounding watershed have
been modified including the rerouting of
Prefumo Creek into Laguna Lake. This
project, which focuses on maintenance
dredging in focused areas on the lake, is
scheduled to take place in 2019-20 and
2020-21. In addition, a bank stabilization
project is planned for 2020-21.
79 Packet Page 91
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
CG
Description
2019-20 2020-21 2019-20 2020-21
Ranger Services
(Ranger Staffing;
FTE = 2)
146,474 152,922 299,396 Funding to provide two Ranger
Maintenance Workers.
Subtotal 146,474 152,922 290,000 540,000 1,129,396
Street Lighting 75,000 75,000 150,000 ST
This annual funding supports the
establishment of three new streetlights
requested by the general public.
Locations are chosen by the proximity to
Schools, pedestrian and vehicle collision
history.
Pedestrian and
Bicycle
Pathway
Maintenance
79,000 79,000 ST
This funding for pathway maintenance
will improve a portion of the Bob Jones
trail, from Prado Road to Los Osos Valley
Road, located along the City's Water
Resource Reclamation Facility (WRRF).
Improvements will reduce the risk of
accidents and improve the overall user
experience.
Bicycle Facility
Improvements
100,000 100,000 200,000 ST
This funding allows the City to complete
small-scale bicycle facility improvements
in a cost-efficient manner by
incorporating important improvements
into larger projects such as annual
roadway paving work. Typical
improvements include removal of storm
drain grates that impact bike lanes, bike
lane signing and striping, and shared lane
markings in conjunction with other larger
projects.
Active
Transportation
Plan
100,000 100,000 ST
This project will update and expand the
Bicycle Transportation Plan to include
pedestrians creating an Active
Transportation Plan that addresses both
bicycle and pedestrian needs. This work
will include a study of the City’s
pedestrian transportation system
including the development of pedestrian
polices and plans consistent with the
scale of the City’s Bicycle Transportation
Plan. This plan will also include updates
for recently approved development
projects and inclusion of modern
infrastructure such as buffered and
protected bicycle lanes.
80 Packet Page 92
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
C
G
Description
2019-20 2020-21 2019-20 2020-21
Downtown
Renewal 325,000 80,900 405,900 D
This work continues to improve the
aesthetics and safety of the Downtown
core. In 19-20, this funding will be used
to replace sidewalk at 858 Higuera, which
doubles as a roof of the basement of the
building. Due to the deterioration of the
sidewalk, sections of concrete have
exposed rebar underneath which will
eventually result in failure of the
sidewalk/basement roof. In 2020-21, this
budget provides part of the funding for
sidewalk replacement, new tree wells,
pedestrian lighting, conduits for tree
lighting, and bike racks on Broad Street,
between Marsh and Higuera. This
project will be completed using LRM and
other sources of funding.
Urban Forest
Maintenance 175,797 175,000 350,797 C
The City’s Urban Forest is comprised of
approximately 20,000 public trees.
Regular tree pruning and related
maintenance provides for an attractive,
healthy, and safer urban forest. This
funding will be used to provide annual
tree pruning in neighborhoods and the
downtown.
Sidewalk
Replacement
and Installation
46,000 89,000 135,000 ST
This funding provides for replacement of
damaged sidewalk and installation of
new sidewalk. This program continues
the City's commitment to provide a
complete and accessible pedestrian path
of travel to meet ADA standards.
Replacing defective sidewalk improves
accessibility and reduces risk to users and
the City.
Transportation
Planning and
Engineering
(Engineers,
Active
Transportation
Manager; FTE =
1.6)
200,678 215,023 415,701 One Active Transportation Manager and
.6 FTE of a Transportation
Planner/Engineer position.
Subtotal 200,678 215,023 861,797 598,900 1,876,398
South Street
Median
Landscape
15,000 15,000
This project will provide funding to
landscape the median South Street
between Higuera and Broad.
81 Packet Page 93
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
C
G
Description
2019-20 2020-21 2019-20 2020-21
Transportation
Safety &
Operations
55,000 55,000 ST
The City completes annual safety reports
which identify changes that can be made
to the City’s roadways to enhance safety.
This funding will be used to implement
the highest priority safety improvements
identified in the Traffic Safety Report.
Typically, these improvements included
improved traffic and bicycle striping,
signage, crossings and traffic signal
modification.
Traffic Safety
Implementation 10,000 221,000 231,000 This funding will be used to modify and
improve the Marsh and Broad Street
traffic signal and pedestrian crossing.
Traffic Signs &
Striping
Maintenance
25,000 25,000
This funding will be used to restripe lane
lines, marked crosswalks and other
roadway indicators enhancing safety for
motorists, cyclist and pedestrians.
Targeted areas include Peach Street to
Bridge Street, between Santa Rosa Street
and Highway 101 and Madonna Road to
Vachell Lane, between Devaul Ranch
Drive and Prado Road.
Signal and Light
Maintenance
(Technician; FTE
= 1)
109,598 112,237 221,835 Funding to support a Signal Technician
position.
Subtotal 109,598 112,237 10,000 316,000 547,835
Police Patrol
Vehicles (7) 205,000 260,000 465,000 Funding to replace three police patrol
vehicles in 2019-20 and four police patrol
vehicles in 2020-21.
Police Student
Neighborhood
Assistance
Program (SNAP)
patrol vehicle
55,000 55,000
This funding will replace one police SNAP
patrol vehicle with an SUV hybrid used to
respond to some calls for service in lieu
of a police officer.
Community
Safety
Emergency
Response
Communication
Equipment
380,000 250,000
630,000
This project will replace the existing
communication equipment and a shelter
located on South Hill in 2019-20 as well
as install new communication equipment
and shelter near Highway 1 and Highland
Drive. This equipment allows for radio
communication for emergency services
such as police and fire. The existing
communication equipment and shelter
located on South Hill have reached the
end of their useful life.
82 Packet Page 94
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
C
G
Description
2019-20 2020-21 2019-20 2020-21
Public Safety
Mobile Data
Computers
(MDC), including
in-car video for
police patrol
vehicles
80,000 500,000 580,000
This funding will allow for intermediate
repairs to the system including rapidly
repairing non-functioning equipment in
public safety vehicles in 2019-20 and full
system replacement in 2020-21.
Emergency
Dispatch Center
Technology and
Equipment
Replacement
35,000 35,000
Replacement of equipment that is
utilized 24 hours a day, 365 days a year
by public safety dispatchers. This
equipment includes 2 large security
monitors, projector, backend supporting
equipment and replacement backup
batteries.
Handheld and
Vehicle
Radio
Replacement
143,123 143,123
All City radio end user equipment (public
safety and non-public safety) are
reaching end-of-support and/or end-of-
life. The public safety portion of the
equipment is heavily used and requires a
high degree of reliability. This funding
will cover the replacement of 70 Police
handheld radios.
911 Phone
System Upgrade 20,000 20,000
This will allow the City to enter into an
extended support contract with a current
vendor for an additional year. This will
allow the City to complete a Public Safety
Center Regionalization Study before
investing in an upgrade of the entire 911
System
Fire Station Air
Compressor 80,000 80,000
The air compressor at Fire Station 1 was
purchased and installed in 1995 This air
compressor is used to refill air bottles
used by firefighters while working in
hazardous environments. The life span of
these compressors is 20 years.
83 Packet Page 95
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
C
G
Description
2019-20 2020-21 2019-20 2020-21
Police Station
Replacement
Study
50,000 50,000
The current Police Department building
was assessed as being insufficiently sized
to meet present and future needs of the
Department and does not meet current
seismic standards. The site selected for
the new facility was the same location as
the existing building at 1042 Walnut
Street. This ongoing project will continue
the development of the planning
package and building renderings
necessary for future architectural design,
engineering, and cost estimating
elements.
Fire Stations
Building
Maintenance
140,000 131,500 271,500
In 2019-20, this funding will replace the
HVAC system at Fire Station #1. The unit
has experienced several catastrophic
failures needs to be replaced. In 2020-
21, the funding will be used to replace
roofs at Fire Station #1 and Fire Station
#3.
City Firewall
Replacement 154,863 154,863
Funding will be used to replace the City's
firewall system. The current system is
outdated, and parts of the system are
failing, causing issues with protecting the
City's data, records, internal and mobile
systems. Upgrading the system will
ensure the City meets the public safety
system standards set by the Department
of Justice.
City Network
Security Upgrade 100,664 100,664
Funding will be used to replace the City's
network security. The current system is
outdated, and parts of the system are
failing, causing issues with protecting the
City's data, records, internal and mobile
systems. Upgrading the system will
ensure the City meets the public safety
system standards set by the Department
of Justice.
City Virtual
Private Network
Replacement
78,500 78,500
Funding will be used to replace the City's
virtual private network. The current
system is outdated, and parts of the
system are failing, causing issues with
protecting the City's data, records,
internal and mobile systems. Upgrading
the system will ensure the City meets the
public safety system standards set by the
Department of Justice.
84 Packet Page 96
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
C
G
Description
2019-20 2020-21 2019-20 2020-21
Patrol Services
(Officers,
Sergeant; FTE =
4)
613,991 663,940 1,277,931 Funding to support for three Patrol
Officers and one Police Sergeant.
Subtotal 613,991 663,940 1,422,150 1,241,500 3,941,581
Street
Reconstruction
and
Resurfacing
1,650,000 1,425,054 3,075,054 ST
Funding for pavement maintenance is
used to increase roadway life,
smoothness, and usability. Maintaining
pavement on a regular basis results in
decreased risks to the community and
lower pavement maintenance costs in
the future. Over the two-year period,
this funding is planned to be used for
roadway maintenance on South Broad
Street, and the neighborhoods from
Peach Street to Bridge Street, between
Santa Rosa Street and Highway 101 and
Madonna Road to Vachell Lane, between
Devaul Ranch Drive and Prado Road.
Streets
Maintenance
Medium Duty
Truck with utility
bed and crane
120,000 120,000 Funding to replace heavy duty truck with
a utility bed and crane that is used in
street surface repairs.
Streets
Maintenance
Medium Duty
Truck with hook
lift bed
135,000 135,000
Funding to replace a streets maintenance
medium truck with hook lift bed that is
used for setting-up and breaking down
security barriers at the Farmers' Market
and in street surface repairs.
CIP Project
Engineering
(Inspector; FTE =
1)
101,324 107,736 209,060 Funding to support a Field Engineering
Inspector position.
Streets and
Sidewalk
Maintenance
(Maintenance
Worker; FTE = 1)
76,693 81,791 158,484 Funding to support a Streets
Maintenance Worker position.
Subtotal 178,017 189,527 1,905,000 1,425,054 3,697,598
85 Packet Page 97
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
C
G
Description
2019-20 2020-21 2019-20 2020-21
Mission Plaza
Railing
Replacement
35,000 35,000
Funding is used to replace or reconstruct
existing railings in the Mission Plaza to
meet current ADA and Building Codes as
well as increase safety for the
community.
Building and
Safety (Two
Code
Enforcement
Technicians, and
one Code
Enforcement
Officer; FTE = 3)
289,863 302,046 591,909
Funding supports two Code Enforcement
Technicians and one Code Enforcement
Officer
Subtotal 289,863 302,046 35,000 - 626,909
Storm Drain
System
Replacement
205,000 50,000 255,000
This funding is used to replace and
improve the City's storm drain system
including pipes, culvert and drainage
inlets. Maintenance of the City's storm
drain system provides for increased flood
protection and reduces the likelihood of
property loss. Without periodic
maintenance repair, these structures will
eventually fail and result in unplanned
street closures and impacts to the City's
drainage system. Specific locations
include Bullock, Broad and Leff, Luneta &
Rafael, Funston & Lawton.
San Luis Creek
Bank
Stabilization at
Pismo and
Johnson
10,000 10,000
Funding will be used to stabilize the San
Luis Creek bank, under Johnson Avenue
near Pismo Street. Stabilizing the creek
bank will protect Pismo Street from
further erosion.
Storm Water
Heavy Duty
Truck with
Vac-Con Hydro
cleaner
120,000 120,000
Replace a Vac-Con Hydro cleaner that
removes debris in the City's stormwater
system. The vehicle, purchased in 2008,
is no longer compliant with engine
emission standards.
Creek and Flood
Protection
(Collection
Operators,
Stormwater
Management
Plan; FTE = 6)
636,534 667,282 1,303,816
Funding supports a Stormwater Code
Enforcement Officer, Stormwater
Collection Operators and implementation
of the Stormwater Management Plan.
Subtotal 636,534 667,282 205,000 180,000 1,688,816
86 Packet Page 98
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
C
G
Description
2019-20 2020-21 2019-20 2020-21
Laguna Lake Golf
Course
Maintenance
10,000 20,000 30,000
Funding for this project will begin the
replacement of the 40-year-old irrigation
system, increase water efficiency by
reducing leakage, and increase playability
and safety of the turf.
Playground
Equipment
Replacement
500,000 160,000 660,000
Replacing playground equipment in the
City's parks limits the City's liability
exposure and keeps the City in
compliance with State regulations. In
2019-20, playground equipment will be
replaced at Islay Hill Park. In 2020-21,
funding will go towards the design of
replacing playground equipment at Vista
Lago Park, Meadow Park par course and
Emerson Park fitness equipment.
Park Major
Maintenance
and Repairs
35,000 555,000 590,000
Parks require ongoing maintenance in
order to continue to provide users a safe
and quality experience. This funding will
address playground surfacing, Sinsheimer
Stadium irrigation, drainage
replacement, and installation of
hydration stations.
Mission Plaza
Restroom and
Enhancements
45,000 150,000 195,000 D
This funding will complete the project
scope and environmental reports in
2019-20 and fund the design and
engineering plans of the replacement of
the Mission Plaza restroom.
Swim Center
Building
Maintenance
and Equipment
Replacement
183,000 131,000 314,000 C
The therapy pool has been in operation
for approximately 12 years and due to
the increase in usage, several critical
maintenance items and parts need to be
replaced including the thermal blanket,
chemical pumps, the roof for the main
bathhouse and the tempered water
system.
Hydration
Stations 3,000 3,000 C
Funding to install one hydration station
at either the Senior Center, Ludwick
Community Center or at the Parks and
Recreation office.
City Park Parking
Lot Maintenance 20,000 20,000
This funding will be used for the
maintenance and repair of the parking
lots at Emerson and French parks.
87 Packet Page 99
Local Revenue Measure
Project Title Operating Programs CIP 2-yr Total
Funding
M
C
G
Description
2019-20 2020-21 2019-20 2020-21
Parks and
Landscape
Maintenance
(Maintenance
Worker; FTE = 1)
62,834 66,954 129,788
Funding for a Parks Maintenance Worker
position.
Subtotal 62,834 66,954 773,000 1,039,000 1,941,788
City Virtual
Machine (VM)
Infrastructure
5,000 95,200 100,200
Funding for this project will be used to
upgrade and replace specific portions of
the VM infrastructure. The City’s VM
infrastructure consists of seventeen
hosts running a variety of software that is
vital to daily City operation.
Multi-Site Energy
Management
System Software
- HVAC
- 100,000 100,000
Funding for this project will replace the
twenty-year-old software and associated
system equipment that operates the
HVAC systems in eight City facilities.
These improvements will bring the City
up to industry standards and enable City
facilities to be more energy efficient.
City Hall Fire
Sprinkler
Connection and
American with
Disabilities Act
(ADA) transition
plan
implementation
67,920 9,743 77,663
Funding will be used to install an internal
backflow device to City Hall's fire
sprinkler system, bringing the system up
to State regulation standards. Funding
for the ADA transition plan will be used
for minor upgrades to signage and
accessibility that meets Federal ADA
requirements for government buildings.
Subtotal - - 72,920 204,943 277,863
Total Local
Revenue
Measure Uses
2,237,989 2,369,931 5,574,867 5,545,397 15,728,184
88 Packet Page 100
Financial Plan Overview Debt
Debt
The City of San Luis Obispo is guided by its budget and fiscal policies when
managing its debt. In accordance with the policy section “Capital Financing
and Debt Management”:
• The City’s debt capacity cannot exceed 15% of General Fund
revenues.
• Its direct debt will not exceed 2% of assessed valuations.
• No more than 60% of capital improvement outlays will be funded
from longer-term debt.
Debt should only be incurred for one-time capital expenditures and not
for on-going operations. Borrowing for one-time capital expenditures
allows for the cost of the project to be spread out over the useful life of
the asset and results in the cost being paid by future beneficiaries as well
as current taxpayers.
Debt Management
The City’s bond issues are accompanied by a rating by Standard & Poor’s; one of the three large rating
agencies together with Fitch and Moody’s Investors Service.
With its 2018 refinancing of three different lease revenue bonds, Standard & Poor’s gave the City an AA
rating reflecting the credit factors:
• Strong economy with access to a broad and diverse
metropolitan statistical area (MSA);
• Very strong management, with “strong” financial policies
and practices under S&Ps financial management
assessment (FMA) methodology;
• Strong budgetary performance, with an operating surplus in
the general fund and break-even operating results at the
total governmental fund level in fiscal year 2017;
• Very strong budgetary flexibility, with an available fund
balance of 22% of operating expenditures;
• Very strong liquidity, with total government available cash
at 60% of total governmental fund expenditures and 13.6x
governmental debt service, and access to external liquidity,
S&P considers very strong;
• Adequate debt and contingent liability position, with debt
service carrying charges at 4.4% of expenditures and net
direct debt that is 32.1% of total governmental fund
revenue; and
• Strong institutional framework score.
AAA
•Extremely strong capacity to meet financial
commitments. Highest rating.
AA
•Very strong capacity to meet financial
committments.
A
•Strong cpacity to meet financial commitments,
but somewhat susceptible to adverse economic
conditions and changes in circumstance.
BBB
•Adequate capacity to met financial
commitments, but more subject to adverse
economic conditions.
BB
•Less vulnerable in the near-term, but faces
major ongoiong uncertainties to adverse
business, financial, and economic conditions.
CCC
•Currently vulnerable and dependent on
favorable business, financial, and economic
conditions to meet financial committments
CC
•Highly vulnerable; default has not yet occured,
but it is expected to be a virtual certainty.
C
•Currently highly vulnerable to non-payment,
and ultimate recovery is expected to be lower
than that of higher rates obliations.
89 Packet Page 101
Financial Plan Overview Debt
The City’s Current Debt
The City currently holds $85 million in overall outstanding debt in a combination of lease revenue bonds,
State Revolving Fund loans, i-Bank loans, and vehicle leases. The longest outstanding maturity is to 2045.
In numbers, the City’s debt payments for each of its funds are considered in its long-term financial
assumptions and will amount to:
Year GENERAL PARKING SEWER WATER Total
2020 $ 2,741,518 $ 1,384,085 $ 2,228,070 $ 2,849,570 $ 9,203,243
2021 $ 2,577,209 $ 1,378,371 $ 2,230,002 $ 2,858,273 $ 9,043,855
2022 $ 2,351,259 $ 1,372,444 $ 2,226,567 $ 2,860,165 $ 8,810,435
2023 $ 2,300,216 $ 1,366,273 $ 2,222,867 $ 2,855,444 $ 8,744,800
2024 $ 2,096,098 $ 1,359,918 $ 2,223,799 $ 2,284,614 $ 7,964,429
2025 $ 2,069,360 $ 1,353,288 $ 2,038,242 $ 2,284,518 $ 7,745,408
2026 $ 2,082,119 $ 1,344,969 $ 2,036,306 $ 1,757,612 $ 7,221,006
2027 $ 1,851,050 $ 1,336,274 $ 2,034,300 $ 1,754,892 $ 6,976,516
2028 $ 1,869,942 $ 1,329,716 $ 2,032,396 $ 1,756,057 $ 6,988,111
Total $19,937,771 $12,225,338 $19,272,549 $21,261,145 $72,697,803
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Debt Principal & Interest Payment
GENERAL PARKING SEWER WATER
90 Packet Page 102
Financial Plan Overview Debt
The following tables outline by fund, the current debt, the purpose, the outstanding principal, the
annual debt service cost, and the retirement year of the debt. Several smaller debt issues are falling off
in 2024, but the next significant retirement of debt payments is not scheduled until 2030.
General Fund Detail and Debt Retirement
General Fund Debt policy adherence: FY 2020 Revenue $77,461,000
Debt Payments $ 2,741,518
Percentage of Revenue 4%
Parking Fund Detail and Debt Retirement
Debt Issue - Asset Outstanding
Principal
Annual Payment Final
Year FY 2020
2001 State I- Bank Loan - Marsh St. Garage $4,047,180 $417,027 2032
2018 Refunding Bond $4,536,875 $451,259 2039
Total Parking Fund Debt $8,584,055 $868,286
The Parking Fund will construct its four Downtown parking structure in 2020-21. In order to finance the
capital expenditure, the fund will seek a loan for $20 million to be financed over 20 to 30 years.
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year FY 2020
2010 Lease Fire Truck (Apparatus) $128,738 $128,738 2020
2012 Lease Revenue Refunding Bonds $3,230,000 $384,200 2030
2014 Energy Resources Conservation State Loan $323,347 $94,242 2024
2014 Lease Copiers $5,324 $5,347 2020
2014 Lease Revenue LOVR Overpass $6,805,000 $588,006 2045
2015 Lease Mobil Data Equipment Lease $44,291 $44,462 2020
2016 Lease Fire Pumper & Street Sweeper $236,054 $240,067 2021
2017 Lease Dump Truck & Sweeper $343,021 $141,227 2023
2018 Lease Fire Truck $449,528 $146,131 2024
2018 Refunding Bond $9,743,125 $969,097 2039
Total General Fund Debt $21,308,428 $2,741,518
91 Packet Page 103
Financial Plan Overview Debt
Sewer Fund Detail and Debt Retirement
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year 2020
2008 Suntrust Loan $675,000 $181,500 2024
2009 State I-Bank Loan - Farm Lift Station $7,240,918 $555,511 2038
2014 US Bank Wastewater Lease Agreement $3,907,341 $617,985 2029
2018 Refunding Bond $312,375 $31,070 2039
Total Sewer Fund Debt $12,135,634 $1,386,066
The Sewer Fund has approval for a $140 million, 30-year loan from the Clean Water State Revolving Fund
(SRF) for the upgrade of the Water Resource Recovery Facility. The loan carries a 1.8% interest rate and
the first annual loan payment of $6,080,400 is anticipated in 2024.
Water Fund Detail and Debt Retirement
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year 2020
2004 State Water Resource Control Board $2,441,183 $525,457 2025
2012 Water Revenue Refunding Bond $1,585,000 $567,800 2023
2018 Refunding Bond $237,900 $28,111 2039
2018 Refunding Water Bond (Refund 2006 Bonds) $9,225,000 $883,900 2035
Total Water Fund Debt $13,489,083 $2,005,268
The Water Fund is in the process of securing a 20-year loan through the State Infrastructure Bank (I-Bank)
for needed upgrades at the Water Treatment Plant. The anticipated loan amounts to $11.3 million at a
3.21% interest rate.
92 Packet Page 104
CONSOLIDATED FINANCIAL S
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Long-Term Forecasts
Budget
FY 19
Projected
FY 20
Projected
FY 21
Projected
FY 22
Projected
FY 23
Projected
FY 24
Tax & Franchise Revenue
Sales & Use Tax 25,467$ 25,899$ 26,266$ 26,509$ 26,756$ 27,006$
Property Tax $ 17,232 $ 17,921 $ 18,638 $ 19,197 $ 19,773 $ 20,366
Transient Occupancy Tax 7,875$ 8,033$ 8,133$ 8,275$ 8,420$ 8,504$
Utility Users Tax 5,740$ 5,854$ 5,971$ 6,091$ 6,213$ 6,337$
Franchise Fees 1,527$ 1,558$ 1,589$ 1,620$ 1,653$ 1,686$
Business Tax Certificates 2,884$ 2,942$ 3,001$ 3,061$ 3,091$ 3,122$
Cannabis -$ 650$ 1,500$ 1,515$ 1,530$ 1,545$
Total Tax & Franchise Revenue 60,724$ 62,856$ 65,097$ 66,268$ 67,435$ 68,566$
Fees for Service
Police Services 595$ 742$ 742$ 757$ 772$ 788$
Fire Services 990$ 1,400$ 1,416$ 1,444$ 1,473$ 1,503$
Development Review 5,670$ 5,333$ 5,426$ 5,535$ 5,645$ 5,758$
Parks & Recreation 1,770$ 1,915$ 1,946$ 1,985$ 2,025$ 2,065$
General Government 442$ 560$ 571$ 583$ 595$ 606$
Cannabis 225$ 400$ 750$ 1,000$ 1,020$ 1,040$
Other Revenues 626$ 3,230$ 2,036$ 2,121$ 2,191$ 2,262$
Subventions & Grants 898$ 900$ 900$ 900$ 900$ 900$
Total Fees & Other Revenue $ 11,215 $ 14,480 $ 13,787 $ 14,325 $ 14,621 $ 14,922
Total Revenue $ 71,940 $ 77,337 $ 78,885 $ 80,593 $ 82,056 $ 83,488
Use of Funds
Staffing 51,082$ 53,448$ 55,113$ 55,893$ 57,195$ 58,531$
Contract Services 5,890$ 5,319$ 5,434$ 5,743$ 5,858$ 5,975$
Other Operating Expenditures 10,286$ 6,523$ 6,251$ 6,751$ 6,886$ 7,024$
Cost Allocation (4,118)$ (4,281)$ (4,367)$ (4,454)$ (4,543)$ (4,634)$
SOBCs 2,175$ 2,001$ 1,575$ 1,806$ 1,789$
Total Operating Expenditure $ 63,140 $ 63,184 $ 64,433 $ 65,508 $ 67,202 $ 68,685
Debt Service 3,300$ 2,742$ 2,577$ 3,000$ 3,000$ 3,000$
Capital Expenditures 7,544$ 9,288$ 7,693$ 8,538$ 8,699$ 8,880$
Transfers (4,320)$ 336$ 709$ 625$ 540$ 454$
Total Expenditure $ 69,664 $ 75,550 $ 75,412 $ 77,671 $ 79,441 $ 81,019
Beginning Fund Balance $ 19,721 $ 17,797 $ 16,584 $ 17,057 $ 17,978 $ 18,594
Revenue Over/(Under) Expenses $ 2,276 $ 1,787 $ 3,473 $ 2,922 $ 2,616 $ 2,470
Ending Fund Balance $ 21,997 $ 19,584 $ 20,057 $ 19,978 $ 20,594 $ 21,064
Policy Reserve Level - 20%12,628$ 10,230$ 10,331$ 10,607$ 10,803$ 11,035$
Capital Reserve 500$ 750$ 1,000$ 1,000$ 1,000$
Revenue Stabilization Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
CalPERS Downpayments 4,200$ 3,000$ 3,000$ 2,000$ 2,000$ 2,000$
115 Pension Trust Fund 2,000$ 2,000$ 2,000$ 2,000$ 1,600$
One-Time Allocations to 2019-21 FP 1,421$
Undesignated Fund Balance $ 2,749 $ 2,854 $ 2,976 $ 3,372 $ 3,791 $ 4,429
Annualized Fund Balance 106$ 122$ 396$ 419$ 638$
General Fund Long-term Forecast
94 Packet Page 107
Consolidated Financials
Total Funding Sources – All Funds Combined
Revenue 2019-20 2020-21 % Change
Tax & Franchise Revenue $ 62,856 $ 65,097 3.5%
Service Charges
General Fund $ 14,480 $ 13,787 -5%
Water Service Charges $ 22,385 $ 23,548 5%
Sewer Service Charges $ 17,433 $ 18,518 6%
Parking Service Charges $ 5,342 $ 6,044 13%
Transit Revenue $ 4,115 $ 4,187 2%
Assessment Revenue $ 1,866 $ 1,886 1%
Proceeds from Debt Financing
Water Fund $ 5,500 $ 8,800
Sewer Fund $ 64,310 $ 43,099
Parking Fund $ 20,000
Total $ 198,287 $ 204,966 3%
Tax &
Franchise
Revenue
Service
Charges
Debt
Proceeds
36%31%
33%
95 Packet Page 108
Consolidated Financials
All Expenditures Combined – All Funds
Expenditures 2019-20 2020-21 % Change
General Fund $ 75,550 $ 75,412 -0.2%
Business Activities
Water Fund $ 33,110 $ 32,849 -0.8%
Sewer Fund $ 60,387 $ 38,045 -37%
Parking Fund $ 5,376 $ 34,001 632%1
Transit Fund $ 4,172 $ 4,239 2%
Special Revenue
Tourism Assessment $ 1,533 $ 1,552 1%
Downtown Assessment $ 260 $ 260
Total $ 180,388 $ 186,358 3%
Undesignated Fund Balance/Working Capital 2019-20 2020-21
General Fund $ 2,854 $ 2,976
General Fund Annualized $ 106 $ 122
Water Fund $ 13,174 $ 12,991
Sewer Fund $ 28,301 $ 29,470
Parking Fund $ 12,027 $ 3,831
Transit Fund $ 1,816 $ 1,853
1 Includes the construction of the Palm/Nipomo parking structure.
General Fund
Water Fund
Sewer Fund
Parking Fund
Transit Fund Tourism
Assessment
Downtown
Assessment
42
%
18%
34%
3% 2%
96 Packet Page 109
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OPERATING BUDGETS – GENERAL FUND
97 Packet Page 111
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Operating Budgets
Fee Revenue
Fee Revenue by Department
Part of the City’s cost recovery is through its fees for services rendered by the operating departments.
Fire
Fee 2019-20 2020-21
Cal Poly Fire Services $ 304,973 $ 314,122
Medical ER Recovery $ 185,253 $ 185,253
R1 Inspection Fees $ 260,000 $ 260,000
Other Fire Dept. Revenue $ 5,890 $ 5,890
Permit Fees $ 100,000 $ 100,000
Fire Alarm Permits $ 2,677 $ 2,677
CUPA Inspection Fees $ 140,000 $ 140,000
Cal OES Engine Reimbursement $ 2,000 $ 2,000
Fire Plan Ck. & Inspect. $ 399,000 $ 406,000
Total Fee Revenue 1,399,793 $1,415,942
General Government
Fee 2019-20 2020-21
Business License $ 406,203 $ 414,300
Admin Citations-Bus License $ 1,015 $ 1,015
Other Publications $ 2,677 $ 2,730
Other Service Charges $ 32,125 $ 32,750
Special Events Insurance $ 9,400 $ 9,600
Disability Insurance Reimbursement (CEA) $ 18,800 $ 19,100
Cannabis Permit Fee $ 400,000 $ 750,000
Other Revenue $ 90,000 $ 92,000
Total Fee Revenue $ 960,220 $ 1,321,495
98 Packet Page 113
Operating Budgets
Fee Revenue
Community Development
Fees 2019-20 2020-21
Planning & Zoning Fee $ 480,000 $ 489,000
Development Review Fees $ 166,000 $ 168,000
Building Permits $ 2,263,000 $ 2,305,000
Code Enforcement Fees $ 82,000 $ 82,000
Plan Check Fees $ 994,000 $ 1,012,000
Infrastructure Plan Check $ 923,000 $ 940,000
Encroachment Permits $ 305,000 $ 310,000
Engineering Dev Rev Fee $ 120,000 $ 120,000
Total Fee Revenue $ 5,333,000 $ 5,426,000
Parks & Recreation
Fees 2019-20 2020-21
Adult Athletic Fees $ 120,000 $ 122,400
Youth Athletic Fees $ 37,945 $ 38,704
Instruction Fees $ 80,000 $ 81,600
Spec Event-City Sponsored $ 81,859 $ 83,496
Spec Events-App/Permit $ 30,000 $ 30,600
Library Rental $ 17,453 $ 17,802
Indoor Rental & Use Fees $ 51,795 $ 52,831
Outdoor Rental & Use Fees $ 112,598 $ 114,850
Child Services/Day Care $ 662,000 $ 675,240
Daily Use Fees $ 109,220 $ 109,220
Swim Instruction Fees $ 67,559 $ 68,910
Monthly Lap $ 11,260 $ 11,260
Scrip Sales $ 25,897 $ 25,897
Therapy Pool Fees $ 9,796 $ 9,796
Other Pool Revenue $ 54,047 $ 55,128
Other Park & Rec Revenue $ 3,378 $ 3,445
Driving Range Fees $ 11,485 $ 11,715
Golf Green Fees $ 220,000 $ 224,400
Golf Lesson Fees $ 2,252 $ 2,297
Merchandise Sales Taxable $ 15,764 $ 16,079
Golf Rental Fees $ 10,359 $ 10,566
Golf Cart Rentals $ 28,262 $ 28,262
Rents & Concessions $ 151,716 $ 151,716
Total Fee Revenue $ 1,914,644 $ 1,946,213
99 Packet Page 114
Operating Budgets
Fee Revenue
Police
Fee 2019-20 2020-21
Traffic Fines $ 112,800 $ 112,800
Misdemeanor & Infractions $ 32,900 $ 32,900
Misc. Forfeit & Penalties $ 1,900 $ 1,900
Accident Reports $ 3,400 $ 3,400
Collision Investigation $ 8,000 $ 8,000
Alarm Permits (Contract) $ 100,000 $ 100,000
DUI Cost Recovery $ 21,417 $ 21,417
Witness Fees $ 1,606 $ 1,606
Police Dept Permits $ 7,511 $ 7,511
Property Release Fee $ 1,071 $ 1,071
Tow Release Fee $ 12,850 $ 12,850
Second Response $ 1,071 $ 1,071
Tobacco Permits $ 21,417 $ 21,417
Administrative Citations $ 110,000 $ 110,000
Prop Owner Admin Citation $ 42,833 $ 42,833
Parking Citation-Pd Issue $ 75,000 $ 75,000
Other Police Services $ 188,426 $ 188,426
Total Fee Revenue $ 742,202 $ 742,202
100 Packet Page 115
Operating Budget
General Fund
OPERATING BUDGET-
GENERAL FUND
EXPENDITURE OVERVIEW
The City has nine operating departments that with 69 programs that are classified as all governmental
activities meaning that they are funded by taxes and fees. This section provides an overview of all the
expenditures of the non-enterprise funded programs in the nine programs. The Utilities Department is
presented in the Business Activities section of the budget document.
101 Packet Page 116
Operating Budget
General Fund
DEPARTMENT 2019-20 2020-21
1 Administration $7,146,436 $7,369,051.
2 City Attorney $677,237 $705,122
3 Community Development $4,798,760 $4,851,870
4 Finance $2,943,901 $3,169,190
5 Fire $13,019,071 $13,439,611
6 Human Resources $1,363,945 $1,404,100
7 Parks and Recreation $4,303,161 $4,448,221
8 Police $17,685,865 $18,669,167
9 Public Works $13,138,969 $13,309,803
TOTAL $65,077,345 $67,366,135
11%1%
7%
5%
20%
2%
7%
27%
20%
2019-20 DEPARTMENT OPERATING BUDGET
GENERAL FUND
Administration City Attorney Community Development
Finance Fire Human Resources
Parks and Recreation Police Public Works
102 Packet Page 117
Operating Budget
General Fund
11%1%
7%
5%
20%
2%
6%
28%
20%
2020-21 DEPARTMENT OPERATING BUDGETS
GENERAL FUND
Administration City Attorney Community Development
Finance Fire Human Resources
Parks and Recreation Police Public Works
103 Packet Page 118
Operating Budgets
Employee Summary
Employee Summary1
DEPARTMENT & PROGRAM 2018-19 2019-20 Additions
CITY ADMINISTRATION 26.25 28.25 2.00
Administration & Records 5.00 5.00
City Administration 4.00 4.00
Community Promotion 0.25 0.25
Economic Development 1.00 1.00
Natural Resource Protection 2.00 2.00
Tourism and Bid Promotion 1.75 1.75
IT Geographic Info Services 4.25 4.25
IT Support Services 3.00 3.00
IT Network Services 5.00 7.00 2.00
CITY ATTORNEY'S OFFICE 3.00 3.00 -
City Attorney 3.00 3.00
COMMUNITY DEVELOPMENT 32.50 32.50 -
Building And Safety 13.50 13.50
Community Development Administration 5.50 5.50
Planning & Engineering 13.00 13.00
Engineering Development Review 0.00 0.00
Commissions & Committees 0.00 0.00
Housing Assistance 0.50 0.50
FINANCE 12.50 12.00 (.50)
Accounting 4.80 4.80
Budgets 1.20 1.20
Financial Administration 2.50 2.00 (.50)
Purchasing 2.00 2.00
Revenue Management 2.00 2.00
FIRE 57.00 57.00 -
Emergency Response 45.00 45.00
Fire Administration 4.00 4.00
Fire Apparatus Services 2.00 2.00
Hazard Prevention 6.00 6.00
1 Table reflects regular FTE and not contract or temporary employees.
104 Packet Page 119
Operating Budgets
Employee Summary
DEPARTMENT & PROGRAM 2018-19 2019-20 Additions
HUMAN RESOURCES 5.00 6.00 1.00
Human Resources 5.00 6.00 1.00
Risk Management 0.00 0.00
PARKS & RECREATION (FTEs only) 18.00 17.00 (1.00)
Aquatics Sinsheimer Park 1.00 1.00
Community Services 2.00 2.00
Facilities 1.00 1.00
Golf Course Operations & Maintenance 4.00 4.00
Ranger Program 3.00 3.00
Parks & Recreation Administration 5.00 4.00 (1.00)
Recreational Sports 0.00 0.00
Youth Services 2.00 2.00
POLICE 85.50 88.50 3.00
Investigations 11.00 11.00
Neighborhood Outreach & Education Ser 1.00 1.00
Patrol 44.00 45.00 1.00
Police Administration 5.50 6.502 1.00
Support Services 20.00 20.00
Traffic Safety 4.00 4.00
School Resource Officer 0.00 1.00 1.00
PUBLIC WORKS 84.30 84.30 -
Building Maintenance 5.00 5.00
CIP Project Engineering 15.00 15.00
Flood Control 6.15 6.15
Landscape & Parks Maintenance 12.00 12.00
Parking Operations/Maintenance 10.00 10.00
Public Works Administration 6.00 6.00
Streets & Sidewalk Maintenance 9.65 9.65
Swim Center Maintenance 1.00 1.00
Traffic Signal Lights 2.00 2.00
Transit Operations/Maintenance 3.00 3.00
Transportation Planning/Engineering 6.00 6.00
Urban Forest 4.00 4.00
Vehicle Equipment Maintenance 4.50 4.50
2 The purpose of this additional FTE is to exchange a sworn Sergeant that administers personnel matters to a non-
sworn and to deploy and dedicate the sworn position to support the Downtown.
105 Packet Page 120
Operating Budgets
Employee Summary
DEPARTMENT & PROGRAM 2018-19 2019-20 Additions
UTILITIES 69.10 69.10 -
Environmental Compliance 1.80 1.80
Reservoir Operations 3.90 3.90
Sewer Customer Service 0.00 0.00
Utilities Revenue 1.00 1.00
Utilities Services-Water 4.80 4.80
Wastewater Admin/Eng. 4.50 4.50
Wastewater Collection 7.15 7.15
Water Admin/Engineering 4.80 4.80
Water Distribution 12.50 12.50
Water Quality Lab 3.70 3.70
Water Resource Recovery 12.80 12.80
Water Source of Supply 0.70 0.70
Water Treatment 11.45 11.45
Total Employee Count
DEPARTMENT & PROGRAM 2018-19 2019-20 Additions
TOTAL 393.55 399.05 5.50
City Administration
7%
City Attorney
1%
Community
Development
8%
Finance
3%
Fire
14%
HR
2%
Parks & Recreation
4%
Police
22%
Public Works
21%
Utilities
18%
106 Packet Page 121
Operating Program
Enhancements
Enhancements – General Fund
This section lists enhancements to operating budgets that were included in the 2019-21 Financial Plan to
address:
Major City Goal Efforts
Public Health and Safety
Thoughtful Reorganizations to further
the Fiscal Health Response Plan
Total Enhancements by Major City Goal Investment
Combined Request
2019-20 2020-21
One-Time $786,771 $527,797
Ongoing $915,642 $1,091,793
Total Request $1,702,413 $1,619,590
Fiscal
Sustainability
57%
Climate Action
8%
Downtown Vitality
12%
Housing
23%
107 Packet Page 122
Operating Program
Enhancements
One-Time Resources
Applicable MCG Title One-Time Funding
Source 2019-20 2020-21
Fiscal Sustainability Motion Project – Long-term support $51,000 $24,000 General Fund
Fiscal Sustainability Business attraction & retention $70,000 SB1090
Fiscal Sustainability Contract Services $150,000 $150,000 General Fund
Fiscal Sustainability Cannabis Detective Equipment $25,500 Cannabis Fees
Fiscal Sustainability Diversity and Inclusion $20,000 $20,000
Climate Action Carbon Farming Pilot Program $35,000 General Fund
Climate Action Sustainability Internship Program $15,000 $15,000 General Fund
Climate Action Transportation Electrification SP $10,000 General Fund
Climate Action Urban Forest Master Plan $35,000 General Fund
Climate Action Solid Waste Plan $25,000 General Fund
Climate Action Building Electrification Program $50,000 General Fund
Housing Housing MCG Resources $112,760 $112,760 General Fund
Housing Contract Permit Technician $70,650 General Fund
Housing Temp. Engineering Consultant $75,000 General Fund
Housing Housing MCG Resources $99,037 $99,037 General Fund
Housing Temporary Civil Engineer $45,824 General Fund
Housing Communications Consultant $25,000 $25,000 General Fund
Housing Housing MCG Intern $12,000 $12,000 General Fund
Downtown Vitality DT Sergeant & Field Technician $6,100 GST LEASE
Downtown Vitality “Shop Local” program $30,000 SB 1090
Total Ask $886,771 $533,897
Revenue Offset SB1090 ($100,000)
Parking Fund ($6,100)
Total Investment $786,771 $527,797
108 Packet Page 123
Operating Program
Enhancements
Ongoing Resources
Applicable MCG Title Ongoing Funding
Source 2019-20 2020-21
Fiscal Sustainability Office 365 $139,000 $181,000 General Fund
Fiscal Sustainability IT Reorganization
OpEx Savings
Fiscal Sustainability Increase in community outreach $30,000 $30,000 General Fund
Fiscal Sustainability Property Based Improvement Dist. $62,233 $65,124 General Fund
Fiscal Sustainability Mgmt. Fellowship Program $82,500 $82,500 General Fund
Fiscal Sustainability Recruit Academy OT $32,000 General Fund
Fiscal Sustainability Organization of the Future $225,000 $225,000 General Fund
Fiscal Sustainability Online non-emergency reporting $13,600 $13,600 General Fund
Fiscal Sustainability Cannabis Detective & Contingency $309,682 $395,942 Cannabis Fees
Fiscal Sustainability SLOCOG Fees $9,804 $9,804 General Fund
Climate Action Civic Spark Fellowship Program $55,000 $53,000 General Fund
Climate Action Urban Forest $30,000 $30,000 General Fund
Housing Building Permit Plan Check Policy Change
Housing Housing Trust Fund Award $40,000 $40,000 AHF
Housing Housing Coordinator $(61,177) $(61,177) Net savings
Housing Analyst – Infrastructure Financing $125,000 $128,000 DA Fees
Downtown Vitality DT Sergeant & Field Technician $227,695 $227,695 GST LEASE
Total Request $1,288,337 $1,467,488
Revenue Offset Parking Fund ($227,695) ($227,695)
Development Administration ($105,000) ($108,000)
AHF ($40,000) ($40,000)
Total Request $915,642 $1,091,793
109 Packet Page 124
Operating Budget
General Fund City Administration
CITY ADMINISTRATION
Mission Statement
Providing leadership for the City organization in our quest to
deliver exceptional service by facilitating citizen participation
and government transparency, implementing City Council goals
and programs, and fostering trust, respect and dignity for the
City and the citizens we serve.
About the Department:
The City Administration department is responsible for providing information and recommendations to the
City Council, implementing Council policies and programs as well as managing the day -to-day operations
of the City. It is the lead department charged with overseeing the implementation the Council’s Major
City Goals.
The department is also responsible for coordinating the City's economic efforts including the City's
Tourism program; includes a new Office of Sustainability that houses the City’s Climate Action Program,
Natural Resources Program, Creeks and Watersheds Program and Community Partnerships; and, provides
the City's information technology resources and the City Clerk program. It serves as the liaison to
Downtown SLO, the Revenue Enhancement Oversight Commission, and Monterey Bay Community Power.
110 Packet Page 125
Operating Budget
General Fund City Administration
The department budget at a glance
Program 2019-20 2020-21
City Administration $988,320 $1,017,852
City Council $159,473 $161,610
Cultural Activities $337,601 $347,631
Economic Development $210,943 $219,194
Office of Sustainability $605,449 $620,396
Community Promotion $405,302 $408,093
City Clerk $575,437 $671,696
IT Network Services $2,798,608 $2,811,838
IT Support Services $202,507 $217,403
IT Information Services $866,912 $897,454
Total Administration $7,146,436 $7,369,051
Staffing
55%
Contract
Services
30%
Other
Operating
Expenditures
15%
EXPENDITURES BY FUNCTION
111 Packet Page 126
Operating Budget
General Fund City Administration
26.50 FTEs
City Administration
(26.50 FTE)
Administration
City Administration
(4.00 FTE)
City Council
Cultural Activities
Economic
Development
(1.00 FTE)
Community
Promotion
(0.25 FTE)
City Clerk
(4.00 FTE)
Office of
Sustainability
Office of
Sustainability
(3.00 FTE)
Information
Technology
Network Services
(7.00 FTE)
Information
Services
(4.25 FTE)
Support Services
(3.00 FTE)
Tourism & BID
(1.75 FTE)
Downtown BID
112 Packet Page 127
Operating Budget
General Fund City Administration
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Maintain City Network Reliability Uptime Status 99.9% 99.9%
The indicator is expressed as the percent of uptime each year that the City's core network is online and
available 99.999% of the time (no more than 8 hours per year of unscheduled and uncontrollable
downtime).
Measure/Explanation Target
2019-20
Target
2020-21
Open City Hall Participant Satisfaction Rating 90% 90%
Open City Hall is the City's main online platform for civic engagement. A variety of topics are regularly
posted, and each member of the public is asked to complete a brief satisfaction survey regarding their
experience using the tool. Regular use of Open City Hall by both the staff and public is a cost -effective
way to increase engagement.
Measure/Explanation Target
2019-20
Target
2020-21
Sales and Transient Occupancy Tax Revenue $33,932,000 $34,399,000
Increase the amount of sales and transient occupancy tax received by a 5% total increase and a 1.8%
annual increase per year respectively through various economic development efforts.
Workload Measures
Measure 2017-18 2018-19 2019-21 2020-21
City facilities receiving IT support 31 31 31 31
Data backed-up in Gigabytes 78,200 78,200 78,200 78,200
Number of GIS layers maintained 905 905 905 905
Contacts with businesses regarding starting,
expanding and staying in the City 25 26 50 75
Promotional contracts administered 49 56 50 50
Regular and special Council Meetings held 36 30 24 24
City Manager Reports reviewed 238 230 230 230
Council agenda reports processed 262 266 266 266
Public Records requests processed 253 351 472 472
Community partnership contracts administered 12 12 12 12
113 Packet Page 128
Operating Budget
General Fund City Administration
City Administration
Program Description
The City Administration Program provides information and recommendations to the Council, implements
Council policies, directs the delivery of municipal services, oversees accomplishment of City objectives
and provides administrative support to the Mayor and Council Members.
2019-21 Objectives
Lead the Climate Action Major City Goal.
Lead the Downtown Vitality Major City Goal.
Lead the Funding the Future Initiative.
Activities
Policy advice, guidance, and
implementation.
Council Meeting agenda management.
Operating program direction and
evaluation.
Management, team building, and
leadership.
Communications and public
engagement.
Community Partnerships.
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $729,548 $807,889 $828,420 10% $857,952 4%
Contract Services $158,700 $130,200 $132,200 2% $132,200 -
Other Operating Costs $19,234 $17,700 $27,7001 56% $27,700 -
Total Program $907,484 $955,789 $988,320 1% $1,017,852 3%
1 Increase operating budget for attendance at various meetings and events.
114 Packet Page 129
Operating Budget
General Fund City Council
City Council
Program Description
The Council governs the City of San Luis Obispo by enacting and enforcing all laws and regulations
concerning municipal affairs, subject only to limitations and restrictions of the City Charter and the State
Constitution. Sixteen standing advisory bodies help the Council with this work.
2019-21 Objectives
Implementation of the selected major City goals:
Housing.
Fiscal Sustainability and Responsibility.
Sustainable Transportation.
Climate Action.
Downtown Vitality.
Activities
Enacting Legislation.
Reviewing and adopting City Policy.
Overall Management Supervision.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $118,088 $126,428 $130,073 3% $132,210 2%
Contract Services - - - - - -
Other Operating Costs $11,684 $29,400 $29,400 - $29,400 -
Total Program $129,772 $155,828 $159,473 2% $161,610 1%
115 Packet Page 130
Operating Budget
General Fund Cultural Activities
Cultural Activities
Program Description
The Cultural Activities Program administers partnerships with the Cal Poly Performing Arts Center, City -
County Public Library, and many other cultural organizations that provide community value.
Objectives
Continue support to the City-County Library.
Continue financial support of the Performing Art Center (PAC).
Participate on the PAC Board and Facilities Committee.
Continue to provide support to Community Partners and explore new partnerships.
Activities
Performing Art Center. The City is a
partner with Cal Poly and the
Foundation for the Performing Arts
(FPAC) in the operation of the
Performing Arts Center. Operations are
overseen by the Performing Arts
Commission, with the Mayor and the
City Manager serving as the City’s
representative.
City-County Public Library. In 1989 the
City and the County of San Luis Obispo
entered into a joint powers agreement
to build, own, and operate the City-
County Library at 995 Palm Street. The
City provides an annual contribution to
operating costs and Capital
improvements.
Cultural Partnerships and Non-Profit
Agency Support. As appropriate, the City
assumes responsibilities and makes
grants in other cultural areas.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing - - - - - -
Contract Services $317,011 $324,613 $334,351 3% $344,381 3%
Other Operating Costs - $3,250 $3,250 - $3,250 -
Total Program $317,011 $327,863 $337,601 3% $347,631 3%
116 Packet Page 131
Operating Budget
General Fund Economic Development
Economic Development
Program Description
The Economic Development Program emphasizes support for creation of head-of-household jobs,
collaborates with Cal Poly, Cuesta College, the business community and other agencies to promote
innovation and entrepreneurship, and supports economic activities, including tourism, to ensure the
overall economic health and quality of life.
Objectives
Lead the Downtown Vitality Major City Goal.
Support the Fiscal Sustainability and Responsibility Major City Goal with a focus on economic
development and responsiveness as well as infrastructure financing.
Lead the new cannabis-based business program, including land use, licensing and compliance
issues.
Lead the process to update to the Economic Development Strategic Plan.
Activities
Collaboration with the business
community, non-profit and government
agencies to promote an environment
supportive of entrepreneurs and start-
up businesses.
Implement programs aimed at
mitigating the economic impacts of the
closure of the Diablo Canyon Power
Plant.
Continued focus on the City’s tourism
efforts.
Assistant with site selection, business
liaison services and support for
business, residential and non-
residential development.
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $96,555 $175,355 $140,1932 (20%) $148,444 6%
Contract Services $139,126 $54,200 $54,200 - $54,200 -
Other Operating Costs $6,389 $16,550 $16,550 - $16,550 -
Total Program $242,070 $246,105 $210,943 (14%) $219,194 4%
2 Staffing cost savings related to transitions in positions.
117 Packet Page 132
Operating Budget
General Fund Office of Sustainability
Office of Sustainability
Program Description
The Office of Sustainability provides leadership through direct action, catalyzes positive action through
collaborative engagement and policy development, and creates measurable benefits for the City of San
Luis Obispo and our region through Natural Resources, Climate Action, Creeks and Watersheds, and
Community Partnerships.
Objectives
Lead the Climate Action Major City Goal.
Maintain the Greenbelt, conduct land conservation planning, management, and acquisitions, and
support development review.
Manage and implement storm-water management, flood control, and habitat restoration
projects; support regulatory compliance.
Manage community partnerships with arts, cultural, historical, environmental, social, civic, and
business groups.
Activities
Open space/greenbelt acquisition and
conservation.
Stormwater Management program
coordination and agency reporting.
Natural resource protection, project
mitigation and educational outreach.
Update and implement the City's
Climate Action Plan; support climate
adaptation and community resilience
efforts.
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $301,429 $309,296 $478,4743 55% $512,937 7%
Contract Services $59,243 $65,000 $90,0004 38% $70,000 (23%)
Other Operating Costs $30,570 $31,500 $36,9755 17% $37,459 1%
Total Program $391,242 $405,796 $605,449 49% $620,396 2%
3 The Sustainability Manager position was transferred from City Administration to the Office of Sustainability.
4 Includes funding from SB2 for Climate Coalition and Sustainability Capacity Building.
5 Addition to the operating budget for education and training for the Sustainability Manager position.
118 Packet Page 133
Operating Budget
General Fund Community Promotion
Community Promotion
Program Description
The Community Promotions program promotes the City’s unique lifestyle and enhances the cultural,
recreational, and social well-being of residents and visitors alike. The primary focus of the program is
targeted marketing advised by the Promotional Coordinating Committee (PCC) to support the community.
Objectives
Provide staff support to the PCC and administer the Grants-in-Aid program.
Provide oversight of the City’s Community Promotions contracts and vendors.
Implement work efforts and program enhancements identified in the PCC Strategic Planning
Report.
Activities
Manage annual Cultural Grants
Program.
Increase awareness via public relations
efforts targeting City residents and
visitors.
Promotion and outreach to create
awareness and provide residents and
visitors information on events and
activities.
Enhance and support the Visitor Services
Center and related activities in the
community.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $33,420 $36,702 $38,302 4% $41,093 7%
Contract Services $355,069 $363,000 $363,000 - $363,000 -
Other Operating Costs $2,160 $4,000 $4,000 - $4,000 -
Total Program $390,649 $403,702 $405,302 - $408,093 1%
119 Packet Page 134
Operating Budget
TBID Fund Tourism & BID Promotion
Tourism & BID Promotion
Program Description
The City established a Tourism Business Improvement District (TBID) as requested by the local lodging
industry in 2008. The district levies an assessment on all lodging properties for the purpose of tourism
promotion for the benefit of the district’s constituents. The assessment is a special revenue and is
administered in its separate and distinct fund.
Objectives
Continue the diverse marketing efforts to promote overnight stays in San Luis Obispo.
Actively participate in local, regional and state Visit SLO CAL, Central Coas t Tourism Council,
Downtown SLO and other tourism organizations.
Activities
Tourism marketing efforts.
Promote and sponsor events that attract
visitors from outside the County.
Coordination with strategic local,
regional and statewide tourism
partnerships.
Participation in tourism tradeshows and
industry conferences.
Development, management, and
implementation of the City’s TBID
Strategic Plan.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $167,725 $196,382 $203,800 4% 217,481 5%
Contract Services $1,267,307 $1,107,700 $1,265,0006 14% $1,270,000 -
Other Operating Costs $41,817 $52,000 $64,7866 25% $64,998 -
Total Program $1,476,849 $1,356,082 $1,533,586 13% $1,552,479 1%
6 Additional funding for increased tourism promotion and events funded through the TBID assessment
120 Packet Page 135
Operating Budget
General Fund Downtown SLO Administration
Downtown SLO BID Administration
Program Description
The Downtown Business Improvement District (DBID) was established in 1975 as a parking and
promotions district for the downtown area. As a special fee district, fees are collected from business
license holders operating within a designated area and revenue supports the operations of Downtown
SLO. The City and Downtown SLO (DSLO) agreed by contract that DSLO would provide various services for
the economic, social, cultural, and environmental vitality and beautification of downtown San Luis Obispo.
The assessment is a special revenue and is administered in its separate and distinct fund.
Objectives
Support the Downtown Vitality Major City Goal
Activities
Special Events. Integral to DSLO’s
services is the provision of special events
to the downtown. Those events include:
1. Holiday Activities such as the Annual
Downtown Holiday Parade, Santa’s
House and the Classic Carousel in
Mission Plaza
2. Concerts in the Plaza
3. Thursday Night Promotions including
the Farmers’ Market
Services such as: parking &
transportation; events in Mission Plaza;
downtown maintenance &
beautification; economic development;
and sustaining DSLO as an organization.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing
Contract Services $332,320 $227,000 $260,4007 15% $260,400 -
Other Operating Costs - - - - - -
Total Program $332,320 $227,000 $260,400 15% $260,400 -
7 Increase based upon projected revenue from DBID assessments which is passed directly to Downtown SLO
121 Packet Page 136
Operating Budget
General Fund City Clerk
City Clerk
Program Description
The City Clerk’s office handles a myriad of duties relating to the official business of the City Council, its
commissions and committees. The City Clerk’s office is generally responsible for keeping minutes of City
Council meetings; compiling the agenda and collecting backup information for each council meeting;
processing council agreements; recording official documents; handling legal advertising; conducting
municipal elections; maintaining current files on all commissions and committees; maintaining the city
seal; and handling all other legal or official documents.
Objectives
Ensure that records are preserved as
provided by City Charter and State and
municipal law.
Administer procedures for City elections
for elective offices, initiatives,
referendum and recalls. Conduct
elections that conform to the State
Elections Code and the City's campaign
regulations
Activities
Processing of Public Records
Requests.
Production and distribution of
Agenda Packet for City Council.
Citywide Records Retention and
Management.
Recruitment of all Council Advisory
Body positions.
Conducting of Municipal Elections.
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $503,798 $565,430 $443,0168 (22%) $482,770 9%
Contract Services $184,765 $150,300 $101,2769 (33%) $157,781 56%
Other Operating Costs $20,832 $33,145 $31,145 (6%) $31,145 -
Total Program $709,395 $748,875 $575,437 (23%) $671,696 17%
8 Executive Assistant position transferred from the City Clerk to City Administration
9 Reduction and following increase due to biennial costs associated with elections
122 Packet Page 137
Operating Budget
General Fund IT Network Services
IT Network Services
Program Description
The IT Network Services Program is responsible for ensuring that the City's information technology
resources are effectively managed and used as key tools in improving organizational productivity,
effectiveness, customer service and public access to City information.
Objectives
Support technology projects Citywide.
Continue Phase I of the South Hill Site Upgrade project.
Continue Phase I of the Public Safety Mobile and Handheld Radio Upgrade project.
Upgrade of the City's radio system backend.
Implement a long-term support program for the Enterprise Resource planning Application.
Activities
Provide support for the City’s Telemetry
and SCADA systems.
Develop and implement policies and
plans for the effective and efficient use
of technology resources to improve
organizational productivity, customer
service and public access to City
information.
New systems and applications
installation support.
Communications management.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $772,517 $737,027 $940,24710 29% $949,556 1%
Contract Services $684,199 $731,684 $977,59511 34% $1,016,345 4%
Other Operating Costs $827,677 $897,300 $880,766 (1%) $845,937 (4%)
Total Program $2,284,393 $2,366,011 $2,798,608 19% $2,811,838 -
10 Increase due to filling of vacant IT Manager position and transferring funds from IT Support Services to Network
Services
11 Increase due to addition of Oracle ERP annual support contract (Motion project).
123 Packet Page 138
Operating Budget
General Fund IT Support Services
IT Support Services
Program Description
The IT Support Services Program is responsible for ensuring that the City's information technology
resources are effectively supported and used as key tools in improving organizational productivity,
effectiveness, customer service and public access to City information.
Objectives
Upgrade software, measure, monitor and optimize IT services.
Manage the IT investment, budget, risk and technical knowledge base.
Manage capabilities and resources to deliver services effectively and efficiently.
Activities
Provide Citywide support for
applications, systems and infrastructure.
Facilitate City employee training on
departmental and Citywide applications.
Reduce and resolve requests for support
through analytic tools.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $181,685 $282,021 $202,50712 (28%) $217,403 7%
Contract Services - - - - - -
Other Operating Costs - - - - - -
Total Program $181,685 $282,061 $202,507 (28%) $217,403 7%
12 Change due to one-time contract staffing in this program that is no longer needed due vacancies being filled.
124 Packet Page 139
Operating Budget
General Fund IT Information Support Services
IT Information Services
Program Description
The IT Information Services Program operates and maintains the City's geographic information system
(GIS), enterprise databases, and enterprise applications. The Program provides accurate and
comprehensive information services for managing resources, maki ng informed decisions, and expediting
work processes.
Objectives
Provide GIS, mapping and enterprise database support for the Housing, Sustainable
Transportation, Climate Action and Downtown Vitality Major City Goals.
Transfer management and support of Enterprise Resource Planning (ERP) to Information Services.
Migrate databases to SQL High Availability Groups.
Update Information Services Standards and Policies.
Activities
Enterprise application management and
maintenance such as the Enterprise
Resource Planning (ERP) system.
Database management and
maintenance.
Applications development and analysis.
Training and assistance on specific
projects related to GIS or enterprise
system applications.
Cartography and presentation.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $589,233 $464,465 $791,01213 70% $821,554 4%
Contract Services $44,951 $53,800 $53,800 - $53,800 -
Other Operating Costs $16,227 $22,100 $22,100 - $22,100 -
Total Program $650,411 $540,365 $866,912 70% $897,454 4%
13 Change due to planned staffing to support Oracle ERP system (Motion project)
125 Packet Page 140
Operating Budget
General Fund City Attorney
CITY ATTORNEY
Mission Statement
Providing excellent legal advice and services to the City Council and all
City Staff.
About the Department
The legal services program is a support function that assists the City Council, all City departments and City
advisory bodies to accomplish Major City Goals, Other Important Objectives, and core operational
functions in accordance with the law.
This program includes: Council, Commission and cross departmental legal review and advice to ensure
general compliance with applicable laws and to minimize liability exposure; defending or managing the
defense of claims and litigation against the City and initiating civil actions on behalf of the City; enforcing
and prosecuting violations of the Municipal Code, including both criminal violations and
civil/administrative enforcement; and coordinating the City's review of and response to proposed county,
state, and federal legislation.
126 Packet Page 141
Operating Budget
General Fund City Attorney
The department at a glance
Program 2019-20 2020-21
City Attorney $677,237 $705,122
Staffing
93%
Contract
Services
5%
Other
Operating
Expenditures
2%
EXPENDITURES BY FUNCTION
127 Packet Page 142
Operating Budget
General Fund City Attorney
City Attorney's
Department
(3.00 FTE)
City Attorney
(1.00 FTE)
Assistant City Attorney
(1.00 FTE)
Legal Assistant/Paralegal
(1.00 FTE)
128 Packet Page 143
Operating Budget
General Fund City Attorney
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Citation Appeal Process Completed Within 70 Days 70% 80%
Administrative Citations written for violations of the City's Municipal Code will occasionally result in an
appeal being filed. It is the goal of this office to make the appeals process as efficient as possible for all
those involved and measure that efficiency by the time between when the City receives a request for
appeal and when a decision on that appeal is mailed. The process is coordinated by City staff but relies
entirely on volunteer hearing officers to review appeals and make decisions and should take no longer
than 70 days. During the last Financial Plan, approximately only 50% of appeals met that goal. Various
factors contributed to this drop of efficiency (the rate had been about 80%); transitions in staffing, staff
time focused on other priorities, and the launch of several new software programs, to name a few.
Starting in Fiscal Year 2018-19 and continuing through the 2019-2021 Financial Plan, the task of
shepherding the appeals process has been centralized (regardless of the department that issued the
citation) and assigned to a different staff member, supported by temporary funding. The goal of these
changes being to significantly increase efficiency.
Measure/Explanation Target
2019-20
Target
2020-21
Claims Against the City Received that Resulted in Litigation 5% 5%
Through active management of liability claims filed against the City, it is the objective that very few will
result in litigation or judgments against the City, and that claims, and litigation settlement costs can be
managed effectively. A level of less than 5% of all claims received by the City being litigated is ideal. In
Fiscal Year 17-18 and for the current fiscal year, less than 1% of claims against the City resulted in
litigation.
Workload Measures
Measure 2017-18 2018-19 2019-20 2020-21
Liability Claims Against the City Reviewed 66 66* 70 70
Resolutions/Ordinances Reviewed 106 105* 105 105
Regular & Special Council Meetings 29 25* 28 28
Planning Commission Meetings 23 14* 18 18
Public Records Requests Received by the City 215 334* 665 1170
Administrative Citation Appeals Received by the City 151 129* 150 150
*As of April, 2019
129 Packet Page 144
Operating Budget
General Fund City Attorney
City Attorney
Program Description
The City Attorney program is a support function that assists the City Council, all City departments and City
advisory bodies to accomplish Major City Goals, other important Council objectives, and core operational
functions in accordance with the law. The legal services function also includes representation of the City
in litigation and/or litigation management, as well as independent enforcement of the Municipal Code.
Objectives
Develop and maintain a high level of legal support to City government.
Provide prompt, thorough legal advice in response to inquiries, with emphasis on legal options.
Minimize liability exposure of City through the practice of preventative l aw.
Apprise City Council on pending litigation, legislation, and other significant legal matters.
Strengthen Municipal Code enforcement practices.
Activities
Legal review and advice.
Litigation.
Enforcement.
Legislative review.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $650,305 $757,794 $629,577 (17%)1 $657,462 4%
Contract Services $253,196 $31,100 $31,100 - $31,100 -
Other Operating Costs $13,332 $16,560 $16,560 - $16,560 -
Total Program $916,833 $805,454 $677,237 (16%) $705,122 4%
1 In the three fiscal years prior to FY 2019-20, $150,000 of temporary staffing funds were authorized and included in
this budget. A SOBC has been submitted requesting the funding be continued for each of the two years of this
Financial Plan (2019-20 & 2020-21)
130 Packet Page 145
Operating Budget Community Development
COMMUNITY DEVELOPMENT
Mission Statement
Our mission is to serve all persons in a positive and courteous manner
and help ensure that San Luis Obispo continues to be a healthy, safe,
attractive, and enjoyable place to live, work, or visit. We help plan the
City's form and character, support community values, preserve the
environment, promote the wise use of resources, and protect public
health and safety.
About the Department
The Community Development Department includes the Planning & Engineering and Building & Safety
divisions which develop, implement and track guiding policies in the City's General Plan. Plans for new
construction are reviewed through zoning, building permits, subdivision regulations, code enforcement,
and community design guidelines. The Community Development Department processes applications for
development of private property and serves San Luis Obispo residents directly at its public counter and
through code enforcement, and indirectly by guiding the City's urban form from concept to construction.
131 Packet Page 146
Operating Budget Community Development
The department at a glance
Program 2019-20 2020-21
Community Development Administration $719,909 $741,311
Commissions & Committees $51,453 $51,453
Planning & Engineering $2,062,994 $2,037,630
Building and Safety $1,637,404 $1,714,476
Human Relations $327,000 $307,000
Total Community Development $4,798,760 $4,851,870
Staffing
87%
Contract
Services
11%
Other
Operating
Expenditures
2%
EXPENDITURES BY FUNCTION
132 Packet Page 147
Operating Budget Community Development
Community
Development
(32.48 FTE)
Administration
Community
Development
Administration
(5.95 FTE)
Commissions &
Committees
Human RelationsPlanning & Engineering
(13 FTE)
Building & Safety
(13.53 FTE)
32.5 FTEs
133 Packet Page 148
Operating Budget Community Development
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Development Review activities completed within established cycle
times
75% 75%
The target goal of meeting cycle times 75% of the time reflects an increase in more complex and
resource intensive development review activities.
Measure/Explanation Target
2019-20
Target
2020-21
Affordable Housing Units Constructed 34 Units 40 Units
Based on current entitlements and applications in progress, it is estimated that 34 affordable units will
be built in FY 2019-20 and 40 affordable units will be built in FY 2020-21.
Measure/Explanation Target
2019-20
Target
2020-21
Code Enforcement Response Within Established Timelines 80% 80%
This performance measure assesses the performance of the Code Enforcement Division with respect to
the average response time for all complaints received. The standards are: First Tier - 24 Hours, Second
Tier - 2 Days, and Third Tier - 3-5 Days
Workload Measures
Measure 2017-18 2018-19 2019-21 2020-21
Number of Development Review Applications
Processed
480 345 355 362
Engineering Development Review Applications
Processed
60 24 25 25
Building Permit Applications Processed 1346 915 900 750
Inspections Conducted 8,062 6,510 4,600 4,600
Enforcement Cases Reported 771 880 800 800
Affordable Housing Units Constructed 5 50 34 40
134 Packet Page 149
Operating Budget
General Fund Community Development Administration
Community Development Administration
Program Description
The Community Development Administration program provides management and support for the
Planning & Engineering and Building & Safety divisions of the Community Development Department, and
the City Council, Planning Commission, Architectural Review Commission, Cultural Heritage Committee
and Human Relations Commission.
Objectives
Support the Housing and Climate Action Major City Goals.
Implement proactive public engagement tools for projects.
Implement the City's Fiscal Responsibility Philosophy by "right-sizing" resources with a focus on
the reduction of unfunded liabilities.
Identify and support ideas for continued improvement and development within the Community
Development Department.
Activities
Community Development Department
leadership, management and
organizational development.
Database and records management,
including citywide addressing.
Contract and securities management
Committee and Commission support
Public information and support
services.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $608,437 $636,129 $661,304 4% $682,706 3%
Contract Services $31,518 $34,500 $34,500 - $34,500 -
Other Operating Costs $48,309 $23,105 $24,105 4% $24,105 -
Total Program $688,264 $693,734 $719,909 4% $741,311 3%
135 Packet Page 150
Operating Budget
General Fund Commissions & Committees
Commissions & Committees
Program Description
Three commissions, one committee, and an appeal board advise the City Council on planning, building
and social issues. Community Development Department staff serve as the staff liaison to all of these
commissions and committees.
Objectives
Protect, maintain and enhance the social and economic values created by past and present
investments in the community by requiring all future development to respect these traditions and
require that all buildings and structures placed on the land respect the natural landforms, and
become a compatible part of the total community environment.
Activities
Planning Commission (PC) - Support
General Plan goals and objectives in plan
and project approvals.
Architectural Review Commission (ARC)
- Update the Community Design
Guidelines.
Cultural Heritage Committee (CHC) -
Help identify and advise on suitable
treatment for archaeological and
historical resources.
Human Relations Commission (HRC)
Construction Board of Appeals- Hear and
decide appeals of orders, decisions, and
determinations made by the Chief
Building Official and serve as the Appeals
Board for Disabled Access.
Program Budget
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $16,222 $26,753 $26,753 - $26,753 -
Contract Services $15,569 $13,500 $13,500 - $13,500 -
Other Operating Costs $3,591 $11,200 $11,200 - $11,200 -
Total Program $35,382 $51,453 $51,453 - $51,453 -
136 Packet Page 151
Operating Budget
General Fund Planning and Engineering
Planning and Engineering
Program Description
The Planning and Engineering Division is new in the 2019-21 Financial Plan. This division reflects a
consolidation of budgets from prior program activities including Long Range Planning, Engineering –
Development Review, and Planning – Development Review. The program develops and implements land
use planning, zoning, subdivision, engineering, environmental review, and other development regulation
services for the strategic development of a livable and sustainable community.
Objectives
Provide appropriate support for the City’s Major City Goals.
Forecast future conditions, needs, and strategies to implement the City’s land use policies and
programs.
Assist in achieving desired development in conformance with established policies, guide lines,
standards, and acceptable timeframes and provide timely processing of applications consistent
with State and local laws and policies.
Create and maintain an enjoyable place to live, work and visit while protecting the public health,
safety, and welfare.
Activities
Provide public information.
General Plan update and
implementation monitoring.
Evaluation and administration of State
and City codes and regulations for public
and private development.
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $2,068,587 $2,089,576 $1,782,369 (15%)1 $1,856,492 1%
Contract Services $474,496 $175,500 $254,775 45%2 $155,288 (47%)
Other Operating Costs $66,807 $31,950 $25,850 (19%)1 $25,850 -
Total Program $2,609,890 $2,297,026 $2,062,994 (11%) $2,037,630 (4%)
1 Reduction consistent with reorganization implemented as part of the Fiscal Health Response Plan, including the
elimination of a Deputy Director level position.
2 Includes SB2 funding for the Downtown zoning update and childcare study (First Five).
137 Packet Page 152
Operating Budget
General Fund Building and Safety
Building and Safety
Program Description
The Building and Safety Division implements the adopted construction codes and other state and local
laws that regulate building construction, use, and maintenance, including disabled access regulations. The
program operates a public permit counter responsible for the processing and coordinating of construction
applications. The Program also includes a major focus on Neighborhood Wellness and Code Enforcement.
Objectives
Enforce fire and life safety codes on public and private property, including unreinforced masonry
program and compliance with mandatory fire sprinkler retrofit provisions.
Preserve neighborhood wellness by coordinating code enforcement activities and timely
compliance with a variety of regulatory programs city wide.
Provide and maintain accurate and attainable records of building permits, inspections , and code
enforcement activities, as well as certificates of occupancy , and provide support to the
Construction Board of Appeals.
Activities
Plan review of construction permit
applications and construction
inspection.
Development review coordination
including collection of Impact Fees.
Enforcement and updating of relevant
codes
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $1,307,932 $1,664,446 $1,564,800 (6%) $1,648,353 5%
Contract Services $500,008 $32,600 $41,702 28%3 $42,223 1%
Other Op. Costs $26,869 $23,900 $30,900 29%4 $23,900 (23%)
Total Program $1,834,809 $1,720,946 $1,637,404 (5%) $1,714,476 5%
3 This increase reflects the addition of Host Compliance Contract for Homestay Permit and vacation rental
compliance efforts.
4 Increase reflects reallocation of funding from Contract Services to Other Expenditures for required training for
certified Building and Safety staff.
138 Packet Page 153
Operating Budget
General Fund Human Relations
Human Relations
Program Description
The Human Relations Program provides funding for the activities of the Human Relations Commission,
which serves as an advisory body to the Council on issues relating to human and social services. Program
includes: 1) advising the Council on social and human service issues; 2) overseeing the Grants-In-Aid (GIA)
process and providing recommendations to Council on grant distribution, including input on Community
Development Block Grant (CDBG) recommendations; 3) serving as liaison to the community regarding
social and human service issues; 4) monitoring and informing Council and the community on statistics
identifying the social health of the city.
Objectives
Support production and preservation of
affordable housing.
Award grant funding to private, non-
profit agencies serving the Human
Services needs of residents.
Support the continued development of
accessible transit, bicycle and pedestrian
mobility infrastructure and policies that
benefit all people, and connect the
community from housing to jobs,
healthcare, social services, daily
services, and educational opportunities.
Support access to social services
targeting seniors and youth in the
community.
Activities
CDBG evaluations.
GIA administration.
Community Needs Workshop.
Low income water and sewer customer
subsidy.
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing - - - - - -
Contract Services $148,947 $249,000 $327,000 31%5 307,000 (6%)-
Other Operating Costs - $800 - (100%)6 - -
Total Program $148,947 $249,800 $327,000 31% $307,000 (6%)
5 Includes $20,000 for diversity efforts and consolidation of funding for homeless services (40 Prado funding).
6 Reflects the consolidation of minor costs associated with meeting/event support with other department budgets.
139 Packet Page 154
Operating Budget Finance
FINANCE
Mission Statement
Safeguarding the City’s resources and fiscal health by
implementing financial policies, procedures, and reporting
systems to serve the citizens and enable operating departments
to achieve their objectives.
About the Department
The Finance Department is responsible for managing the City's financial operations in accordance with
applicable law, policies, and procedures. This includes the preparation of the City's budget, payroll, and
financial reports, administration of the City's treasury and revenue operations, management of the City's
resources, and administration of indirect City-wide costs not easily charged to operating programs or
projects. The Department also prepares the City’s audit and its Comprehensive Annual Financial Report
as well as the Popular Annual Financial Report. Lastly, the Department assists the City Manager’s office in
monitoring and reporting on both annual revenues and expenditures.
140 Packet Page 155
Operating Budget Finance
The department at a glance
Program 2019-20 2020-21
Finance Administration $334,144 $342,740
Budgets $198,748 $203,795
Revenue Management $351,868 $362,436
Purchasing $188,186 $200,331
Accounting $839,772 $876,150
Non-Departmental (Citywide) $1,031,183 $1,183,738
Total Finance $2,943,901 $3,169,190
Staffing
75%
Contract
Services
20%
Other
Operating
Expenditures
4%
EXPENDITURES BY FUNCTION
141 Packet Page 156
Operating Budget Finance
Finance
(12.00 FTE)
Finance
Financial
Administration
(2.00 FTE)
Accounting
(5.00 FTE)
Budgets
(1.00 FTE)
Purchasing
(2.00 FTE)
Revenue
Management
(2.00 FTE)
Citywide
Support Services
Nondepartmental
12 FTE
142 Packet Page 157
Operating Budget Finance
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Receive the Government Finance Officers Association Distinguished
Budget and CAFR Award
Yes Yes
The Government Finance Officers Association (GFOA) issues the Certificate of Achievement for
Excellence in Financial Reporting (CAFR) and the Distinguished Budget Preparation Award to recognize
local governments that go beyond the minimum requirements of generally accepted accounting
principles when preparing comprehensive annual financial reports, that provide full disclosure of
financial status to the public, and that prepare budget documents of the very highest quality that reflect
both the guidelines established by the National Advisory Council on State and Local Budgeting and the
GFOA’s best practices on budgeting.
Measure/Explanation Target
2019-20
Target
2020-21
Meet Budget and Fiscal Policy Fund Balance Requirements 100% 100%
Through semi-annual reporting to the City Council, ensure that the City is meeting all budget and fiscal
policy adopted fund balance requirements.
Measure/Explanation Target
2019-20
Target
2020-21
Meet all Federal, State, and City Charter Reporting Requirements 100% 100%
Provide accurate and timely financial reporting data as required to Federal and State entities as well as
to the City Council as required by the City Charter and financial policies.
Workload Measures
Measure 2017-18 2018-19 2019-21 2020-21
Business Tax Certificates Issued 8,230 8,250 8,300 8,300
Accounts Payable Checks issued 27,200 27,500 27,500 27,500
W2s Issued 766 780 800 800
1099s Issued 137 140 145 145
143 Packet Page 158
Operating Budget
General Fund Finance Administration
Finance Administration
Program Description
This program plans, organizes, leads and monitors the divisions within the Finance Department. It is
responsible for managing the City's financial operations in accordance with established policies and plans
Objectives
Identify financial support for and aid with the implementation of Major City Goals.
Work closely with the operating departments in developing and implementing funding plans and
programs in achieving their goals and objectives.
Oversee implementation of Finance goals, objectives, and projects.
Continue developing and implementing operation efficiencies.
Activities
Fiscal policy advice and guidance.
Department leadership.
Department Administration.
Cross-Departmental Program
Administration.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $550,338 $708,000 $301,0441 (57%) $309,640 3%
Contract Services $231,802 $313,996 $17,2002 (95%) $17,200 -
Other Operating Costs $29,856 $16,136 $15,900 (1%) $15,900 -
Total Program $811,997 $1,038,132 $334,144 (68%) $342,740 3%
1 Reduction of regular staffing pertaining to the Oracle ERP implementation (Motion project).
2 Reduction of contract expenditures pertaining to the Oracle ERP implementation (Motion project).
144 Packet Page 159
Operating Budget
General Fund Budget
Budget
Program Description
The Budget Program is responsible for citywide coordination of the development and preparation of the
City’s two-year Financial Plan budget, and Supplemental Budget. The Financial Plan allocates resources of
the City to achieve the highest priority objectives established by Council. The program is responsible for
implementation of budgetary controls and financial reporting and compliance with adopted Financial
Plans.
Objectives
Lead development and preparation of the two-year Financial Plan in accordance with Council
adopted highest priorities and fiscal policies.
Evaluate, monitor, and produce reports documenting the City's financial progress for internal
customers and for presentation to the City Council every six months.
Facilitate the evaluation of City Programs by providing a means to measurably examine the
performance of financial activities over time
Activities
Financial Planning. Compliance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $105,408 $171,055 $174,248 2% $179,295 3%
Contract Services $17,838 $- $22,0003 - $22,000 -
Other Operating Costs $- $- $2,500 - $2,500 -
Total Program $123,247 $171,055 $198,748 $203,795 3%
3 Accounts for contract services related to the budget program omitted in 2018-19.
145 Packet Page 160
Operating Budget
General Fund Revenue Management
Revenue Management
Program Description
The Revenue Management Program administers the City's treasury and revenue operations in accordance
with established fiscal policies.
Objectives
Fiscal Sustainability and Responsibility.
Continue refinement of business tax enforcement program.
Monitor receipts of local revenues and initiate effective collection strategies to ensure that
revenues and taxes are paid by those who are obligated to pay them.
Activities
Business tax and license.
Accounts receivable.
Cashier and public counter.
Daily deposits.
Cannabis tax and license.
Revenue analytics.
Transient Occupancy Tax Collection &
audits.
Utility User Tax Collection & audits.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $211,851 $190,751 $227,1284 19% $237,696 5%
Contract Services $71,970 $73,878 $108,5405 47% $108,540 -
Other Operating Costs $8,429 $20,300 $16,200 (20%) $16,200 -
Total Program $292,251 $284,929 $351,868 23% $362,436 3%
4 Accounts for a Revenue Analyst vs an Supervising Accounting Assistant
5 Includes new cashiering software for the ERP system and Cannabis related modules.
146 Packet Page 161
Operating Budget
General Fund Purchasing
Purchasing
Program Description
The Purchasing Program is responsible for City purchasing and contracting policies to effectuate more
efficient and standardized centralized purchasing procedures for citywide implementation. The program
provides assistance to all departments in their purchasing activities.
Objectives
Oversee City purchasing and ensure compliance with all applicable laws, regulations and policies.
Develop and maintain standards and procedures for purchasing activities for all departments.
Maintain best practices in purchasing to ensure responsible use of City funds.
Manage City contracts and performance compliance.
Provide quality service, analytical support and information regarding procurement and
contracting to all departments
Activities
Business process review.
Purchasing operations.
Contract management.
Purchase auditing.
Best Practices for purchasing
Contract negotiation for citywide
purchasing.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $153,909 $209,5816 $176,686 (16%) $188,621 7%
Contract Services $2,772 $- $8,500 $8,710 2%
Other Operating Costs $- $- $3,000 $3,000
Total Program $156,681 $209,581 $188,186 (10%) $200,331 6%
6 Reflects one-time costs associated with employee retirement.
147 Packet Page 162
Operating Budget
General Fund Accounting
Accounting
Program Description
The Accounting Program prepares citywide financial statements, ensures integrity of financial data,
processes accounts payable and payroll, and prepares financial reports in compliance with Federal and
State regulations. The Program is responsible for developing monitoring and reporting systems that help
assure the City's long-term fiscal health, providing quality customer service, and protecting the City's cash
assets from unauthorized use.
Objectives
Provide accurate and timely financial reports to internal and external stakeholders.
Process timely payments as well as collections to/from vendors and the public. Maintain City
employee payroll records and meet payroll disbursement and reporting deadlines.
Provide general oversight over the City's investments, banking, and debt services.
Activities
Financial reporting.
Payroll.
Accounts Payable.
General Accounting services and
policies.
Investments, banking services and debt
service administration.
Citywide audit and comprehensive
annual financial report.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $642,606 $683,716 $679,152 - $711,330 5%
Contract Services $214,264 $206,525 $153,5207 (25%) $157,720 3%
Other Operating Costs $3,048 $7,750 $7,100 (8%) $7,100 -
Total Program $859,918 $897,991 $839,772 (6%) $876,150 4%
7 Previous years included contracts leading to the ERP system implementation.
148 Packet Page 163
Operating Budget
General Fund Support Services & Non-Departmental
Support Services & Non-Departmental Expenses
Program Description
The Support Services and Non-Departmental Program administers and accounts for indirect Citywide
costs not easily charged to operating programs or projects.
Objectives
Effective budgeting and accounting for Citywide costs.
Activities
Citywide copier maintenance and
supplies.
Citywide postage and mailing supplies.
Citywide membership and conference
fees for the League of California Cities.
Ventures and Contingency Funding for
use at the City Manager’s discretion to
support innovative proposals.
General Fund leave payouts and staffing
contingency funds.
Contingencies for staffing related
expenditures and negotiations.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $3,026 $804,678 $650,536 (19%) $803,091 238%
Contract Services $110,585 $276,000 $276,300 - $276,300 -
Other Operating Costs $81,429 $104,347 $104,347 - $104,347 -
Total Program $195,040 $1,185,025 $1,031,183 (13%) $1,183,738 15%
8 Finance Cost Center Needs
149 Packet Page 164
Operating Budget
General Fund Fire
FIRE
Mission Statement
Serving you is our mission because we care. The San Luis Obispo
Fire Department protects the lives and property of the
residents, businesses, and visitors of the City from the adverse
effects of medical emergencies, fires, and other dangers caused
by man or nature.
About the Department
In addition to providing compassionate emergency response, the Fire Department embraces a
prevention and education strategy that includes fire and life safety inspections, plan review services,
fire/arson investigation, fire safety and prevention public education, and disaster preparedness classes.
The Fire Department has automatic and mutual aid agreements with surrounding departments,
California Office of Emergency Services, and Los Padres National Forest.
150 Packet Page 165
Operating Budget
General Fund Fire
The department at a glance
Program 2019-20 2020-21
Fire Administration $1,066,731 $1,118,913
Emergency Response $10,294,205 $10,716,177
Hazard Prevention $918,867 $981,413
Training Services $138,725 $140,750
Recruit Academy $111,975
Fire Apparatus Services $437,775 $437,873
Fire Station Facilities Support $43,993 $37,625
Disaster Preparedness and Assistance $6,800 $6,860
Total Fire $13,019,071 $13,439,611
Staffing
94%
Contract
Services
2%
Other
Operating
Expenditures
4%
EXPENDITURES BY FUNCTION
151 Packet Page 166
Operating Budget
General Fund Fire
Fire
(57.00 FTE)
Administration
Fire
Administration
(4.00 FTE)
Emergency
Response
Emergency
Response
(45.00 FTE)
Recruit Academy
Training Services
Fire Apparatus
Services
(2.00 FTE)
Hazard
Prevention
Hazard
Prevention
(6.00 FTE)
Disaster
Preparedness &
Assistance
57 FTEs
152 Packet Page 167
Operating Budget
General Fund Fire
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Meet the Total Response Time (TRT) goal as defined by General Plan
Safety Element of 7 minutes or less to 90% of all lights -and-siren
emergencies in the City.
90% 90%
Total Response Time is calculated from the time of 911 pick-up in the City's Emergency Communication
Center until arrival of the first Fire Department personnel at the scene. For serious medical emergencies
and fires of all types, rapid arrival at the scene impacts outcomes. The time standard established in the
General Plan Safety Element are reflective of the guidance standards of the National Fire Protection
Association (NFPA).
Measure/Explanation Target
2019-20
Target 2
020-21
Percentage of Fire Department Development Review activities
completed within published cycle times.
80% 80%
The target goal of meeting cycle times on 80% of all development review activities is based on
assumptions that some projects will be more complex, development review activities will be extremely
high, and resources will be limited.
Workload Measures
1 Fire Incidents, Rescue and Medical Services, Total Fire Responses and Emergency Response Personnel Average
Training Hours are provided in calendar years 2017, 2018, 2019, 2020.
2 Total Fire Reponses do not include cancelled alarms or non-emergency medical transfers.
Measure1 2017-18 2018-19 2019-21 2020-21
Fire Incidents (National Fire Incident Reporting
System (NFIRS) 100 series)
97 149 155 159
Rescue and Medical Services (NFIRS 300 series) 3,584 3,521 3,660 3,753
Total Fire Responses2 5,774 5,856 6,097 6,255
Fire and Safety Inspections 2,896 3,611 3,650 3,650
Building Plan and Development Plan Reviews 793 810 820 820
Emergency Response Personnel Average Training
Hours
147 170 175 175
153 Packet Page 168
Operating Budget
General Fund Fire Administration
Fire Administration
Program Description
The Fire Administration program provides strategic leadership to the organization. Fire Administration
plans, directs and evaluates all Fire Department programs and their activities
Objectives
Provide responsive, effective and efficient fire department programs.
Develop well planned, long-term sustainability focus for fire department personnel, facilities,
equipment and organization.
Activities
Department leadership.
Public information and support services.
Human resource recruitment, testing
and management.
Fiscal and contract management.
Fund enhancement.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $739,713 $870,390 $885,575 2% $932,934 5%
Contract Services $36,120 $51,355 $56,061 8% $55,884 -
Other Operating Costs $94,312 $120,295 $125,095 4% $130,095 4%
Total Program $870,145 $1,042,040 $1,066,731 2% $1,118,913 5%
154 Packet Page 169
Operating Budget
General Fund Emergency Response
Emergency Response
Program Description
The Emergency Response Program is responsible for protecting life, the environment, and property by
responding to a wide variety of emergencies, including, but not limited to: medical emergencies, structure
fires, vegetation fires, hazardous materials incidents, vehicle fires/accidents, flooding, utility emergencies,
and a wide range of urgent public assists.
Objectives
Deliver timely response.
Provide medical emergency Advanced Life Support.
Provide effective number of personnel for initial attack on fires.
Limit environmental damage caused by release of hazardous materials.
Minimize property damage.
Activities
Emergency Medical Services (EMS).
Fire Protection.
Hazardous material incident response.
Rescue. Extrication of victims trapped in
wrecked automobiles, collapsed
buildings, swift water rescues and
trail/cliffside/open space extractions.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $10,350,309 $10,056,860 $10,152,161 1% $10,574,826 4%
Contract Services $38,414 $43,450 $44,063 1% $43,370 (2%)
Other Operating Costs $199,352 $97,981 $97,981 - $97,981 -
Total Program $10,588,075 $10,198,291 $10,294,205 1% $10,716,177 4%
155 Packet Page 170
Operating Budget
General Fund Hazard Prevention
Hazard Prevention
Program Description
The Hazard Prevention Program prevents injury and loss of life, property and the environment damaged
by fire, explosion or exposure to hazardous materials.
Objectives
Eliminate fire hazards and investigate fires in buildings, properties and equipment through plan
review and safety inspection services.
Participate in the County Certified Unified Program Agency (CUPA) program to track, inspect, and
increase safety related to hazardous materials.
Expand public awareness about the dangers of fire and hazardous materials.
Activities
Fire and life safety inspections and
abatement.
Fire investigation.
Hazardous material inspection and
abatement.
Building plan review and construction
inspections.
Hazardous waste removal and disposal.
Education.
Hydrant maintenance (funded by
Utilities).
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $789,270 $865,859 $866,609 - $926,463 7%
Contract Services $81,663 $33,175 $34,808 5% $37,500 7%
Other Operating Costs $11,487 $18,725 $17,450 (7%) $17,450 -
Total Program $882,420 $917,759 $918,867 - $981,413 7%
156 Packet Page 171
Operating Budget
General Fund Training Services
Training Services
Program Description
The Fire Training Program schedules, coordinates, and documents both in-house and outside training and
certification for fire department staff. The program also works to maintain and improve the health fitness
of fire department employees. The overall program goal is to provide and support highly qualified, well -
trained, safe, healthy and fit employees.
Objectives
Provide and support highly qualified, well-trained, safe, healthy and fit employees.
Activities
In-service training.
Outside training.
Health fitness.
Safety. Providing required safety
training to all employees
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $32,084 $47,700 $61,6753 23% $62,900 2%
Contract Services $22,990 $34,900 $34,000 (3%) $34,800 2%
Other Operating Costs $38,315 $43,050 $43,050 - $43,050 -
Total Program $93,389 $125,650 $138,725 9% $140,750 1%
3 Increase due to re-allocation of training overtime funding from Emergency Response
157 Packet Page 172
Operating Budget
General Fund Recruit Academy
Recruit Academy
Program Description
The Recruit Academy Program is responsible for coordinating and completing the training of new hire
firefighters.
Objectives
Conduct ten-week recruit-training for all new hire fire fighters.
Activities
Conducting recruit-training academy for new hire fire fighters
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing - $49,900 $50,675 2% - (100%)
Contract Services - $9,000 $9,000 - - (100%)
Other Operating Costs $700 $48,300 $52,300 8% - (100%)
Total Program $700 $114,700 $111,975 4% - (100%)
158 Packet Page 173
Operating Budget
General Fund Fire Apparatus Services
Fire Apparatus Services
Program Description
The Fire Apparatus Program performs fire apparatus services, maintenance and repair of light and heavy
fire apparatus and vehicles.
Objectives
Perform all required maintenance on light and heavy fire vehicle apparatus and vehicles and
related equipment.
Activities
Maintain all apparatus and equipment in sound working order.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $227,990 $233,264 $245,995 5% $248,093 1%
Contract Services $34,903 $37,080 $39,380 6% $37,380 (5%)
Other Operating Costs $143,463 $147,800 $152,400 3% $152,400 -
Total Program $406,356 $418,144 $437,775 5% $437,873 -
159 Packet Page 174
Operating Budget
General Fund Fire Station Facilities Support
Fire Station Facilities Support
Program Description
Fire Stations Facilities Support manages and maintains the City’s four fire station facilities, their grounds
and miscellaneous related equipment, appliances, and furnishings.
Objectives
Maintain safe, functional, attractive, and energy efficient fire stations.
Work closely with the Public Works Department to facilitate building repairs and landscape
maintenance.
Activities
Minor Facilities Maintenance.
Major Building Repair and Construction.
Public Access Automatic External
Defibrillators (AED).
Fire Mapping Program.
Fire Radio System and Equipment.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $25 $700 $718 3% $730 2%
Contract Services $19,060 $9,230 $5,4004 (71%) $8,0205 33%
Other Operating Costs $27,901 $28,875 $37,8756 24% $28,8757 (31%)
Total Program $46,986 $38,805 $43,993 12% $37,625 (17%)
4 Decrease due to cyclical nature of servicing publicly available Automatic Electronic Defibrillators (AEDs)
5 Increase due to cyclical nature of servicing publicly available AEDs
6 Increase due to one-time equipment replacement needs
7 Decrease due to one-time equipment replacement in 2019-20
160 Packet Page 175
Operating Budget
General Fund Disaster Preparedness and Assistance
Disaster Preparedness and Assistance
Program Description
The Disaster Preparedness Program has three areas of focus: 1) ensures that City personnel can provide
appropriate rescue and relief services following a major disaster such as earthquake, flood, nuclear power
accident, hazardous material spill, and wildland fire: 2) provides information and e ducation on disaster
preparedness, and fire safety to the general public: and 3) provides assistance to communities outside of
the City of San Luis Obispo as part of the State’s Mutual Aid system.
Objectives
Provide disaster response training to City employees.
Maintain up-to-date hazard mitigation and disaster response plans.
Educate residents and businesses in disaster and emergency preparedness.
Participate in the State’s Mutual Aid response system.
Activities
Training.
Planning.
Community Outreach.
Business Continuity.
Mutual Aid Response.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing - $3,300 $3,400 3% $3,460 2%
Contract Services - - - - - -
Other Operating Costs $35,577 $6,600 $3,4008 (94%) $3,400 -
Total Program $35,577 $9,900 $6,800 (46%) $6,860 1%
8 Reduction due to operating expenditure reductions related to the City’s Fiscal Health Response Plan
161 Packet Page 176
Operating Budget Human Resources
HUMAN RESOURCES
Mission Statement
Helping employees realize their full potential so they can
effectively serve our community.
About the Department
The Human Resources Department provides support to all City departments through programs: Human
Resources Administration, Risk Management, and Wellness. The services provided under the Human
Resources Administration program include coordination of recruitment and selection processes;
classification and compensation; labor relations and negotiations; performance management; employee
training and development; and employee benefit administration. Services provided in the Risk
Management program include liability and property claims administration; workers' compensation
administration; employee safety and compliance; and insurance review. The Wellness program promotes
a healthy organization through the Employee Assistance Program and various education and wellness
activities.
164 Packet Page 177
Operating Budget Human Resources
The department at a glance
Program 2019-20 2020-21
Human Resources $1,330,145 $1,370,300
Risk Management $15,200 $15,200
Wellness $18,600 $18,600
Total Human Resources $1,363,945 $1,404,100
Staffing
78%
Contract
Services
19%
Other
Operating
Expenditures
3%
EXPENDITURES BY FUNCTION
163 Packet Page 178
Operating Budget Human Resources
Human
Resources
Human
Resources
(6.00 FTE)
Risk
Management
Wellness
164 Packet Page 179
Operating Budget Human Resources
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Percentage of On-Time Employee Performance Evaluations 95% 95%
Performance feedback is critical to the effectiveness of an organization. On-time evaluations are
written, reviewed and approved as necessary, discussed with the employee, and processes accordingly.
Currently the City has 87% of performance evaluations completed on-time.
Measure/Explanation Target
2019-20
Target
2020-21
Percentage of Internal Promotions 40% 40%
The Employment Opportunity Program (EOP) allows regular (non-probationary), contract, and
supplemental employees to apply for positions prior to opening a recruitment to the public. Hiring
internally has many benefits, including promoting a Healthy and Smart culture, reducing recruitment
costs, and retaining high quality trained employees with knowledge or the organization and community
served. Currently internal promotions have averaged 42% over the past five years with a goal of
continuing at that same rate going forward.
Measure/Explanation Target
2019-20
Target
2020-21
Reduction in Liability and Workers’ Compensation Claims* -7% -6%
Focus on education and prevention should lead to decreased liability and workers compensation claims
and severity. Reducing employee work-related injuries and illnesses reduces the stress, strain, and lost
time, thus positively impacting productivity and morale. This performance measure will use the current
five-year averages to set benchmarks in reducing claim numbers and claim costs.
*This performance measure will only consider liability claims that incurred monetary losses
Workload Measures
Measure 2017-18 2018-19 2019-21 2020-21
Recruitments - Regular and Supplemental 70 110 100 100
Labor relations activity 40 40 45 45
Applications screened 3,200 2,800 3,000 3,000
Training sessions coordinated 31 35 35 35
Classification, compensation and benefit analysis 45 60 90 75
Liability Claims Filed 66 62 59 56
Workers Compensation Claims Filed 61 60 58 55
165 Packet Page 180
Operating Budget
General Fund Human Resources
Human Resources
Program Description
The Human Resources Administration Program provides support to all City departments in all aspects of
attracting and retaining highly qualified employees. The Program manages a variety of functions including
coordination of recruitment and selection, classification and compensation, performance management,
employee training and development, labor relations and negotiations, employee benefits and statutory
and regulatory compliance.
Objectives
Maintain compliance with State and Federal laws related to employment practices.
Continue to develop and implement a comprehensive training and development program,
including succession planning efforts.
Continue to improve marketing the City to draw well-qualified applicants.
Activities
Employee recruitment, selection,
orientation, development and training.
Employee classification and
compensation.
Employee performance management.
Employee/employer labor relations and
negotiations.
Legal Compliance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $880,752 $938,630 $1,071,645 14%1 1,111,800 4%
Contract Services $186,294 $203,800 $225,300 10%2 $225,300 -
Other Operating Costs $76,349 $54,700 $33,200 (40%)3 $33,200 -
Total Program $1,097,639 $1,197,130 $1,330,145 11% $1,370,300 3%
1 Staffing increases due to implementation of MOTION support.
2&3 Increases to Contract Services due to redistribution from Other Operating Costs
166 Packet Page 181
Operating Budget Human Resources
General Fund Wellness
Risk Management
Program Description
The Risk Management program aims at reducing the risk of employee injuries and accidents and protects
City assets from liability. The City established an Insurance Fund for the purpose of paying its annual
liability, worker’s compensation, and event insurance and to help manage the fluctuations in the
insurance programs necessary to protect the City. A reserve within the Insurance Fund for the Liability
Excess Insurance Program will be maintained at approximately 75% funded confidence level based on the
prior five-year average claims experience. Establishing the Insurance Fund reduces the Risk Management
program budget in 2019-20 as indicated in the table below.
Objectives
Continue to review and update safety policies and procedures, increase safety awareness and
reduce preventable injuries through training and education of employees.
Review insurance plans and coverage and process renewals annually, seeking the most cost-
effective methods of insuring.
Review standards for insurance requirements in contracts with those who do business with the
City to make sure appropriate risk transfer measures are included.
Activities
Loss Control and Risk Management
Activities
Liability claims administration.
Workers’ compensation claims
administration.
Safety improvement.
Insurance review
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing - - - - - -
Contract Services $235,868 $10,100 $10,100 - $10,100 -
Other Operating Costs $3,809,869 $4,507,943 $5,100 (100%)4 $5,100 -
Total Program $3,637,902 $4,518,043 $15,200 (100%) $15,200 -
4Funds related to insurance, liability, and worker’s compensation are now being budgeted in the Insurance Fund.
167 Packet Page 182
Operating Budget Human Resources
General Fund Wellness
Wellness
Program Description
The Wellness Program supplements the Risk Management Program by providing employees tools and
education to improve their physical and emotional well-being, thus enhancing employee productivity and
performance. The program provides employees with fitness, nutrition, and health and safety information,
education, and programs as well as professional counseling and referral services through the Employee
Assistance Program.
Objectives
Maintain wellness rooms for employee use.
Encourage physical activity and healthy lifestyles.
Provide health, wellness and safety information to employees via newsletter articles.
Continue to encourage use of Employee Assistance Program.
Activities
Wellness Room.
Employee Assistance Program (EAP).
Physical fitness and healthy lifestyle
education
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing - - - - - -
Contract Services $9,591 $16,100 $16,100 - $16,100 -
Other Operating Costs $2,886 $2,500 $2,500 - $2,500 -
Total Program $9,519 $18,600 $18,600 - $18,600 -
168 Packet Page 183
Operating Budget Parks and Recreation
PARKS AND RECREATION
Mission Statement
Inspiring happiness by creating community through people, parks,
programs, and open spaces.
About the Department
The Parks and Recreation Department is committed to providing quality parks and facilities (such as the
SLO Swim Center, Damon-Garcia Sports Complex, and Laguna Lake Golf Course) where recreation
programs, special events, activities for youth and seniors, cultural and educational opportunities occur in
an effort to encourage wellness and develop community through leisure, cultural, and social pursuits The
Department also protects and preserves the City’s natural resources and open spaces.
169 Packet Page 184
Operating Budget Parks and Recreation
The department at a glance
Program 2019-20 2020-21
Administration $798,015 $830,299
Facilities $238,920 $252,871
Youth Services $984,855 $1,007,496
Community Services $607,048 $624,362
Rangers $544,076 $557,750
Aquatics $484,246 $502,526
Golf Course $646,001 $672,917
Total Parks & Recreation $4,303,161 $4,448,221
Staffing
82%
Contract
Services
6%
Other
Operating
Expenditures
12%
EXPENDITURES BY FUNCTION
170 Packet Page 185
Operating Budget Parks and Recreation
The Parks and Recreation budget is predominately related to staffing costs. In addition to the annual full-
time Parks and Recreation employees, the Department relies heavily on supplemental employees who
provide service to the community year-round equivalent to 46.5 full-time equivalent employees equaling
roughly 43% of the departments staffing cost. At times the Department may have 150 to 200
supplemental employees providing services such as lifeguarding and instructional swim lessons, providing
afterschool childcare, hosting special events and pop up events, providing open space enforcement,
promoting all the department activities and classes through social medial and more.
Parks &
Recreation
(63.5 FTE)
Recreation
Administration
(6.00 FTE)
Facilities
(4.00 FTE)
Youth Services
(20.5 FTE)
Community
Services
(6.00 FTE)
Rangers
(8.00 FTE)
Aquatics
(12.00 FTE)
Golf Course
(7.00 FTE)
63.5 FTE
FTEs
171 Packet Page 186
Operating Budget Parks and Recreation
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Pop up Events to Activate our Parks & Facilities 12 events 15 events
Activate parks and recreational facilities through the planning of “pop-up” events with a target goal of
at least 12 events in 2019-20 and 15 in 2020-21.
Measure/Explanation Target
2019-20
Target
2020-21
Increased Community Awareness of Recreational Activities 10% 10%
Continue to maximize outreach and educational efforts through social media. Track website visits,
targeted emails, and community participation at and Parks and Recreation events.
Measure/Explanation Target 2019-
20
Target 2020-
21
Miles of Trails/Roads Maintained in the City Open Space 57 Miles 58 Miles
Preserve and protect the City’s natural resources and open space by m aintaining, managing, and
patrolling open space, trails, and creek corridors.
Workload Measures
Measure 2017-18 2018-19 2019-21 2020-21
Youth Service Participants 1,195 1,195 1,195 1,195
Adult Sports Teams Registered 240 250 260 270
Youth Sports Participants 1,000 1,100 1,200 1,200
Triathlon Participants 900 900 1,000 1,000
Golf Rounds Played 30,000 25,000 30,000 30,000
Contract Class Participants 750 850 1,000 1,000
SLO Swim Center Uses 83,500 87,700 90,000 92,000
Facility Permits Processed 900 900 1,000 1,000
Special Events Permitted 90 90 90 90
Senior Center Members 300 300 300 300
Jack House & PRC Meetings 18 18 18 18
172 Packet Page 187
Operating Budget
General Fund Recreation Administration
Recreation Administration
Program Description
The Recreation Administration Program plans for new parks and recreation facilities, and improvements
to existing ones, applies for, and administers grant programs, researches industry trends and best
practices, and provides clerical assistance department-wide including the hiring of supplemental staff, and
manages the department budget. Staff provides support to two advisory bodies; the Parks and Recreation
Commission and the Jack House Committee and manages the Public Art program.
Objectives
Support Downtown Vitality and Climate
Action Major City Goals.
Update the Parks & Recreation Element
of the General Plan and Master Plan.
Implement 2020 Parks & Recreation
Department Strategic Plan.
Implement Public Art Master Plan.
Activities
Department management and
administration.
Capital Improvement Project
management.
Marketing and Community
Engagement.
Public Art management.
Administrative Support to the
Department.
Support to Advisory Bodies.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $644,523 $695,237 $734,700 (6%) $766,984 4%
Contract Services $43,503 $32,625 $28,465 (12%)1 $28,465 -
Other Operating Costs $16,546 $30,690 $34,850 14%2 $34,850 -
Total Program $704,572 $758,552 $798,015 5% $830,299 4%
1 2017-19 Budget included Master Plan and Element update contract services.
2 Increase due to CPI for services (association, subscription dues) and added training for new management staff.
173 Packet Page 188
Operating Budget
General Fund Facilities
Facilities
Program Description
The Facilities Program manages, supervises and schedules the use and maintenance of community
recreation buildings and reserved park areas, and oversees the approval and issuance of facility rental
permits, special events permits, banner permits, and film permits.
Objectives
Manage and coordinate use of City facilities to optimize use and availability.
Maintain the safety and cleanliness of the City’s indoor and outdoor rental facilities.
Manage the Commemorative Bench Program within City Parks.
Activities
Manage staff to provide access to the
City’s indoor and outdoor facilities.
Coordinate Facility reservations and
management.
Commemorative Bench Program and
Donations.
Street Banner Reservations, and
Commercial Filming Permits.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $191,153 $233,026 $220,990 (5%) $234,941 6%
Contract Services $2,976 $6,712 $5,100 (24%)3 $5,100 -
Other Operating Costs $7,615 $12,830 $12,830 - $12,830 -
Total Program $201,744 $252,568 $238,920 (5%) $252,871 6%
3 Carryover from 2017-19 Budget to complete purchase of new speakers at the Stadium.
174 Packet Page 189
Operating Budget
General Fund Youth Services
Youth Services
Program Description
The Youth Services program provides child care before and after school, spring break and teacher work
days, and throughout the summer with a focus on healthy and positive development of children through
anti-bias curriculum and a variety of activities, social experiences, and opportunities that promote
learning, awareness of community, fitness and health, academic support and fun.
Objectives
Provide healthy and positive
opportunities for children.
Serve as a licensed California
Community Care program.
Recruit volunteers and community
members to provide enrichment
opportunities.
Ensure childcare needs are prioritized
and addressed within licensing and
budgetary limits.
Develop inclusive care programs for
children with special needs and train
support staff.
Support academic, Science, Technology,
Engineering, Math (STEM), health and
fitness, developmental, environmental
and community trends.
Activities
State licensed childcare programs.
Annual Registration and Attendance
Monitoring.
Summer Day Camps, Spring Break
Camp and Teacher Workdays.
Community Agency Collaboration.
ADA Inclusive Care.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $770,599 $796,299 $842,525 6% $865,166 3%
Contract Services $21,048 $22,800 $22,800 - $22,800 -
Other Operating Costs $114,622 $119,410 $119,530 - $119,530 -
Total Program $906,269 $938,508 $984,855 5% $1,007,496 2%
175 Packet Page 190
Operating Budget
General Fund Community Services
Community Services
Program Description
The Community Services Program hosts a variety of community-based events such as the SLO Triathlon,
manages youth and adult athletic leagues and recreational activities, promotes healthy lifestyles and
social interactions, coordinates city-wide volunteer opportunities, and serves as liaison to the Jack House
Advisory Committee.
Objectives
Support the Downtown Vitality Major
City Goal.
Expand enrichment class offerings to the
community.
Develop and offer pilot recreational
programs designed to support unmet
community needs.
Develop new marketing strategies for
promotion of recreational sports and
program offerings.
Coordinate volunteer activities for the
Department.
Activities
Community-Focused Events and
Enrichment Classes.
Sports Programs.
San Luis Obispo Triathlon.
Volunteer Services.
Jack House Committee.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $315,224 $374,556 $397,878 6% $415,192 4%
Contract Services $95,168 $111,700 $112,700 1% $112,700 -
Other Operating Costs $90,300 $96,220 $96,470 - $96,470 -
Total Program $500,692 $582,476 $607,048 4% $624,362 3%
176 Packet Page 191
Operating Budget
General Fund Rangers
Ranger Service
Program Description
The Ranger Service Program preserves and protects the natural resources in the City’s open space with
daily maintenance, construction, rehabilitation, and mitigation projects, and patrol. Rangers conduct year-
round environmental education programs and hikes and educate the community about how to help
protect the City’s natural resources and open spaces.
Objectives
Support Climate Action Major City Goal
Maintain the Open Space consistent
with the adopted Maintenance Plan
Assist with the City’s Storm Water
Program compliance
Facilitate mitigation and fire fuel
reduction projects in the City’s open
spaces
Clean up trash and debris in the City’s
Open Spaces and creeks
Activities
Open Space Maintenance, Management
and Patrol.
Creek Corridors and Storm Water
Compliance.
Environmental Education.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $284,503 $516,701 $501,846 (3%) $515,520 3%
Contract Services $18,368 $19,500 $18,600 (5%) $18,600 -
Other Operating Costs $16,792 $22,430 $23,630 5% $23,630 -
Total Program $319,663 $558,631 $544,076 (3%) $557,750 3%
177 Packet Page 192
Operating Budget
General Fund Aquatics
Aquatics
Program Description
The Aquatics Program provides a safe, well-maintained facility offering the community diverse aquatic
activities designed to incorporate fitness, therapy, exercise, rehabilitation, skill development and
socialization regardless of economic status, disability, fitness level or age. The aquatics program
additionally provides well-trained and skilled staff to ensure patron safety and provide emergency
response if needed.
Objectives
Maintain and expand current
programming.
Maintain California and American Red
Cross regulations and requirements.
Maintain a clean, accessible and safe
facility as paramount to the prevention
of incidents and injury at the SLO Swim
Center.
Provide community events.
Activities
Lap, Recreation, and Competitive
Swimming.
Swimming Instruction for all ages.
In-Service Training.
Therapy.
General Facility Use.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $386,659 $425,140 $432,416 2% $450,696 4%
Contract Services $1,782 $1,900 $38,200 1,911%4 $38,200 -
Other Operating Costs $14,649 $16,130 $13,630 (15%)5 $13,630 -
Total Program $403,090 $443,170 $484,246 9% $502,526 4%
4 Change due to new Janitorial Contract – transferred funding from supplemental staffing budgets and other operating costs to contract services.
5 Change due to new Janitorial Contract – transferred funding from supplemental staffing budgets and other operating costs to contract services
178 Packet Page 193
Operating Budget
General Fund Golf Course
Golf Course
Program Description
The Golf Course Program operates and maintains the Laguna Lake Golf Course a 10-hole par three golf
course.
Objectives
Maintain and enhance the Laguna Lake
Golf Course.
Continue various promotions and
community events to increase golf and
other uses of the Golf Course.
Identify environmental initiatives
focused on water conservation and long-
term sustainability.
Activities
Maintenance of 26-acre, 10-Hole
Executive Golf Course.
Equipment Maintenance, Sharpening
and Repair.
Pro-Shop Operations and Customer
Service.
Community-Focused Events.
Senior-Focused Programming.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $398,696 $417,941 $387,457 (7%) $408,475 5%
Contract Services $29,648 $31,300 $38,760 6 24% $38,760 -
Other Operating Costs $176,190 $207,950 $219,784 6% $225,682 3%
Total Program $604,534 $657,191 $646,001 (2%) $672,917 4%
.
6 Due to added Janitorial Contract costs
179 Packet Page 194
Operating Budget Police
POLICE
Mission Statement
Maintaining a safe city by working in partnership with the
community to protect life and property, prevent and reduce
crime, and improve the quality of life in our neighborhoods
while preserving the rights of all through a commitment to
Service, Pride and Integrity.
About the Department
The Police Department consists of two operating bureaus; Operations and Administration. The Operations
Bureau consists of patrol services, traffic safety, and neighborhood services. The Administrative Services
Bureau includes administrative services, investigative division, communications, and records units.
180 Packet Page 195
Operating Budget Police
The department at a glance
Program 2019-20 2020-21
Police Administration $1,982,936 $2,035,013
Patrol $9,259,980 $9,827,597
Investigations $2,659,291 $2,848,965
Police Support Services $2,581,574 $2,692,766
Neighborhood Services $263,061 $273,613
Traffic Safety $939,023 $991,213
Total Police $17,685,865 $18,669,167
Staffing
94%
Contract
Services
3%
Other
Operating
Expenditures
3%
EXPENDITURES BY FUNCTION
181 Packet Page 196
Operating Budget Police
Police
(87.50 FTE)
Administration
Police
Administration
(6.50 FTE)
Support Services
(20.00 FTE)
Operations
Patrol
(45.00 FTE)
Investigations
(11.00 FTE)
Neighborhood
Services
(1.00 FTE)
Traffic Safety
(4.00 FTE)
87.5 FTEs
182 Packet Page 197
Operating Budget Police
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Crime Reduction -5% -5%
The Police Department will work to reduce Part 1 Crime (defined as crimes against persons) by 5% as
compared to FY 2018-19. Methods for reaching this goal include; utilizing a crime analyst position, rapid
deployment of resources, increased social media, lowest level problem solving tactics and
accountability, and utilizing intelligence led policing.
Measure/Explanation Target
2019-20
Target
2020-21
Increase Engagement on Internal Wellness and Employee Health 5% 10%
The Police Department will continue to invest in the peer counseling team and explore the possibility of
offering professional emotional and psychological support annually. The Department will begin tracking
the number of Peer Support contacts handled by the team and look for opportunities to increase
engagement with our Employees by 5% and 10% respectively over the next two years.
Measure/Explanation Target
2019-20
Target
2020-21
Reduce Homelessness and Mental Health Disorders calls -2.5% -2.5%
Reduce calls for service within the downtown that are related to homelessness and/or mental health
disorders by 5% each year with a focus on ensuring 100% of our staff is trained in Crisis Intervention
Training (CIT) and work towards getting some officer and supervisor trained in the 80-hour hostage
negotiation training, to address the growing needs surrounding homelessness and mental health issues
within downtown.
Workload Measures
Measure 2017-18 2018-19 2019-20 2020-21
All Noise Complaints Received by Dispatch 1,897 1,625 1,392 1,193
Citations and Warnings Issued 11,271 10,350 10,557 10,768
DUI Arrests 296 305 311 317
Calls for Service – Police 31,591 31,600 31,615 31,630
Total Arrests 2,921 2,201 2,212 2,223
Calls received in the Communications Center 103,118 103,047 104,077 105,118
Property / Evidence Booked 7,744 5,921 5,980 6,040
Body Worn Camera and In-Car Video Uploads 79,774 80,400 80,500 80,600
Public Records Requests Filled 81 87 92 99
Cases assigned to Detectives 373 293 340 350
183 Packet Page 198
Operating Budget
General Fund Police Administration
Police Administration
Program Description
The Police administration program plans, directs, and evaluates all police services, including overall
department leadership provided by the Chief of Police. Police administration provides business and fiscal
management; personnel hiring and training; risk management; claims/lawsuit coordination; contract
service administration; equipment purchases and maintenance; and computer application support for
public safety information systems, including computer aided dispatch (CAD) and records management
applications. This program is also responsible for preparing and implementing policies and procedures,
ensuring appropriate training and performance standards are maintained and ensuring compliance with
mandates.
Objectives
Complete the bi-annual report of Police department activities and statistics.
Provide oversight for the department’s strategic plan including a new police facility.
Continue with the development of the Intelligence Lead policing model with the Crime Analyst
and have monthly meetings to address crime trends within the City.
Activities
Leadership and Professional Standards.
Business/fiscal administration including
grant research and management, cost
recovery activities, public safety
information system management and
contract administration.
Personnel & training.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $1,035,498 $1,168,346 $1,269,614 9% $1,312,733 3%
Contract Services $288,238 $422,270 $406,670 (3.7%) $414,270 2%
Other Operating Costs $280,999 $299,590 $306,652 2.4% $308,010 -
Total Program $1,604,735 $1,890,206 $1,982,936 5% $2,035,013 3%
184 Packet Page 199
Operating Budget
General Fund Patrol
Patrol
Program Description
The police patrol services program utilizes uniformed officers to respond to emergencies and calls for
service; conduct preliminary investigations of criminal activity and routine traffic collisions; enforce state
and City laws and statutes; apprehend criminals; manage unusual incidents; implement crime prevention
strategies; and provide other public safety services.
Objectives
Continue to develop and implement intelligent lead policing strategies focusing on neighborhood
safety and quality of life and utilizing the current Neighborhood Officer Program.
Increase enforcement of traffic laws focused on violations that tend to increase collisions.
Continue to deploy the Community Action Team and Downtown Bike Unit to address adverse
behavior and homeless issues within the downtown and explore ways to manage and address
homeless related issues that negatively impact our community.
Continue to partner with Transitions Mental Health Association (TMHA) to address the needs of
individuals that may be dealing with Mental Health related issues within our community.
Activities
General and directed patrols, traffic
enforcement and coordinating special
events.
Crime analysis.
Community Action Team, Downtown
Team and Special Weapons and Tactics
(SWAT).
Neighborhood enhancement.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $8,322,951 $8,649,041 $9,148,880 6% $9,722,687 6%
Contract Services $15,460 $14,200 $20,4001 44% $14,200 (30%)
Other Operating Costs $117,464 $85,600 $90,700 6% $90,700 -
Total Program $8,455,875 $8,748,841 $9,259,980 6% $9,827,587 6%
1 Increase to the Operating Budget as a result for budgeting for replacement Bicycles for Downtown Officers.
Replacement of bicycles occurs approximately every three years.
185 Packet Page 200
Operating Budget
General Fund Investigations
Investigations
Program Description
This program provides investigation of a variety of criminal activity. Program staff also interview and
monitor convicted sex and arson offenders; coordinate and deliver enforcement, intervention, and
education services to the high school, and junior high; provide forensic investigative services and evidence
collection and analysis; and process and dispose of evidence and property.
Objectives
Provide comprehensive and updated training to all Investigators.
Continue to participate with organizations to identify and improve sexual assault prevention and
investigation efforts.
Conduct pro-active investigations in crime trends which victimize City residents and businesses .
Provide crime awareness and public training opportunities to reduce victimization within our
community.
Activities
Investigations.
Work with and help train school staff for
emergency situations at the schools.
Special Narcotics Unit, Special
Enforcement Team (SET), Marijuana
Enforcement Team (MET).
Evidence and property.
Public outreach.
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $2,342,347 $2,266,721 $2,659,2912 19% $2,818,665 6%
Contract Services $2,245 $4,600 $4,600 0% $4,600 0%
Other Operating Costs $28,639 $25,700 $25,700 0% $25,700 0%
Total Program $2,373,230 $2,297,021 $2,689,591 17% $2,848,965 6%
2 10% increase in staffing in Investigations is due to the following: FTEs increased from 11.0 to 13.0 as a result of restructuring
the property and evidence staffing by adding another position (funding was taken from Support Services from a Records Clerk
position). Additionally, staffing shows an increase of 1.0 Marijuana Enforcement T eam (MET) Detective which was not there in
prior fiscal years.
186 Packet Page 201
Operating Budget
General Fund Police Support Services
Police Support Services
Program Description
The support services program is divided into two divisions: Communications and Records. The program is
involved in Department of Justice audits, acts as custodian of criminal records, and compliance with State
and Federal regulations. Staff are responsible for receiving, processing and dispatching emergency and
non-emergency calls for service; public outreach, processing police reports and citations; tracking and
reporting crime statistics; and maintaining confidential information.
Objectives
Transition the department from submitting paper reports to electronic reports.
Design and remodel the newly acquired trailer to accommodate a PSAP evacuation.
Provide Staff development and training.
Re-establish 9-1-1 for Kids Education Program and Elder Outreach.
Activities
Maintain and process records, provide
statistical and informational data.
Process Informal Discovery requests,
Trespass Letters, and NCIC validations.
Process emergency and non-emergency
phone calls and requests for service,
including dispatch of Police and Fire
Response.
Public Outreach.
Program Budget Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $2,273,289 $2,460,929 $2,430,674 (1%) $2,539,446 4%
Contract Services $111,067 $125,6003 $142,900 14% $145,320 2%
Other Operating Costs $3,117 $10,0004 $8,000 (20%) $8,000 0%
Total Program $2,387,474 $2,596,529 $2,581,574 (1%) $2,692,766 4%
3 Increase in Data Processing Services for video redaction software, County CJIS access cost increase based on actuals (an increase
of $4900). Contract Services increase by $7400 to account for increase annual maintenance of 4% for Spillman contract, also had
to increase for Thinkstream annual costs $2500 – which was removed as part of the budget reductions since it was tied to Dispatch
however due to timing and current status of dispatch, we will still be responsible for costs.
4 Decrease in Operating budget due to budgeting less in communication supplies to reflect actuals.
187 Packet Page 202
Operating Budget
General Fund Neighborhood Services
Neighborhood Services
Program Description
The Neighborhood Outreach & Education Program is responsible for coordinating services and outreach
to community members with an emphasis on residential neighborhoods through the efforts of the
Neighborhood Outreach Manager. The Program coordinates response to violations of the City noise
ordinance, along with related follow-up, data collection, and the issuance of warning notices and
administrative citations to property owners. The program also includes providing support to various
committees and neighborhood groups as well as receiving and acting on concerns by neighborhood
residents about issues affecting the quality of life.
Objectives
Collaborate with patrol to improve the public outreach relating to crime trends including but not
limited to web/social media outreach, in-person presentations, media releases and videos.
Evaluate, update and enhance noise and Safety Enhancement Zone materials to maintain the
positive downward trend of noise disturbances in the neighborhoods.
Activities
S.N.A.P. (Student Neighborhood
Assistance Program) and Neighborhood
Services Team.
Crime prevention and noise ordinance
enforcement.
Party registration.
SLO Solutions contract management for
conflict resolution.
Department Volunteer Coordination.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $187,081 $224,012 $211,661 (6%) $222,213 5%
Contract Services $38,400 $43,034 $43,000 0% $43,000 0%
Other Operating Costs $9,177 $8,400 $8,400 0% $8,400 0%
Total Program $234,658 $275,446 $263,061 (4%) $273,613 4%
188 Packet Page 203
Operating Budget
General Fund Traffic Safety
Traffic Safety
Program Description
The traffic safety program provides enforcement of traffic laws, collision investigations, education
programs and coordination of special events.
Objectives
Continue conducting special enforcement operations in the City’s most hazardous intersections
and roadways to reduce collisions in those locations, including a focus on reducing collisions
involving bicycles and pedestrians.
Continue enforcement efforts of DUI violations.
Implement data-driven approaches to crime and traffic safety to maximize resources and reduce
crime and collisions and conduct programs designed to increase traffic safety in the
neighborhoods.
Continue to actively participate in traffic safety programs such as Selective Traffic Enforcement
Programs through the California Office of Traffic Safety grants, Child Safety Seat Week, Safe
Routes to School, Every 15 Minutes, Bicycle Rodeos, MADD and school traffic safety
presentations.
Activities
General and directed traffic
enforcement, including DUI
enforcement.
Collision investigation.
Special event coordination.
Education and outreach.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $681,908 $871,567 $911,923 5% $964,113 6%
Contract Services $7,147 $11,400 $10,600 (7%) $10,600 0%
Other Operating Costs $31,958 $11,400 $16,500 4% $16,500 0%
Total Program $721,013 $894,367 $939,023 5% $991,213 6%
189 Packet Page 204
Operating Budget Public Works
PUBLIC WORKS
Mission Statement
Preserve and enhance city infrastructure for an accessible, safe
and inclusive community experience.
About the Department
The City of San Luis Obispo’s Public Works Department accomplishes its mission in two primary ways. One
is by providing safe mobility options for residents and visitors so that all may enjoy the cultural,
recreational, economic, educational and quality of life amenities in San Luis Obispo. The other is to build
and maintain the city’s assets and infrastructure to enhance community safety, health and wellness. None
of the City’s assets are an end unto themselves but rather enable residents and visitors to experience an
enhanced quality of life. The Department’s Vision; ‘Inspiring you to have the best day you have ever had,’
essentially means if we provide high quality mobility options and well-maintained infrastructure, then
users can experience the full benefit of living, visiting and working in San Luis Obispo.
The Department’s thirteen programs each have a critical and unique role in fulfilling the Departme nt’s
mission. Most of the Department is funded by the General Fund, and two programs, Parking and Transit,
are Enterprise Funds funded by users of those services.
190 Packet Page 205
Operating Budget Public Works
The department at a glance
Program 2019-20 2020-21
Public Works Administration $1,060,000 $1,094,309
Parks Maintenance $2,736,466 $2,828,164
Swim Center Maintenance $449,215 $464,333
Urban Forest Services $556,790 $572,566
Facilities $1,235,921 $1,277,973
Streets Maintenance $1,425,568 $1,475,997
Traffic Signals and Lighting $550,074 $557,533
Fleet $1,183,712 $1,199,141
CIP Engineering $2,026,791 $2,111,489
Transportation Planning and Engineering $906,874 $960,726
Stormwater and Flood Control $1,007,558 $1,037,572
Total Public Works $13,138,969 $13,309,803
Staffing
56%
Contract
Services
26%
Other
Operating
Expenditures
18%
EXPENDITURES BY FUNCTION
191 Packet Page 206
Operating Budget Public Works
Public Works
(71.30 FTE)
Administration
Public Works
Administration
(6.00 FTE)
Stormwater & Flood
Control
(6.15 FTE)
Engineering &
Maintenance
Parks Maintenance
(12.00 FTE)
Swim Center
Maintenance
(1.00 FTE)
Urban Forest Services
(4.00 FTE)
Facilities
(5.00 FTE)
Streets Maintenance
(9.65 FTE)
CIP Engineering
(15.00 FTE)
Transportation
Traffic Signals & Lighting
(2.00 FTE)
Fleet
(4.50 FTE)
Transportation Planning
& Engineering
(6.00 FTE)
Parking
(10.00 FTE)
Transit
(3.00 FTE)
84.3 FTEs
192 Packet Page 207
Operating Budget Public Works
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Increase the proactive preventive maintenance of city assets 5% 5%
Preventive maintenance completed in parks, city facilities, and streets prolongs the City’s existing
infrastructure and assets while reducing the risk of larger, more expensive maintenance or reconstruction
projects in the future. This is measured by an increase in Work Orders for Preventative Maintenance.
Measure/Explanation Target
2019-20
Target
2020-21
Enhance traffic safety for all modes of transportation 2% - 3% 2% - 3%
Reduce vehicle to vehicle, vehicle to bicycle, and vehicle to pedestrian traffic collisions based upon a running
three-year average as summarized in the Annual Traffic Safety Report.
Measure/Explanation Target
2019-20
Target
2020-21
Percentage of capital projects constructed in the budgeted year 85% 85%
Target completion of projects funded for construction within the two-year financial plan period.
Workload Measures
Measure 2017-18 2018-19 2019-20 2020-21
Total acreage of park inventory 550 570 570 582
Street miles maintained 197 197 197 197
Total transit riders 964,872 1,013,116 1,084,034 1,138,235
Total number of public parking
spaces in the Downtown core 2,492 2,413 2,543 2,466
Square feet of City facilities 221,176 221,176 221,176 221,176
City fleet 320 320 320 320
Pavement Condition Index 70 72 72 72
Total trench repairs 78 78 78 78
Bicycle Network in total miles
(Class I/II/III/IV) 7.5/29.7/24/0 8.0/30.5/24.0/0 8.5/30.5/24/0.1 10.8/32.2/24.6/1.4
Total trees in the Urban Forest 19,000 19,000 19,000 19,000
Corrugated Metal Pipe in Storm
System 21% 20% 14% 14%
193 Packet Page 208
Operating Budget
General Fund Public Works Administration
Public Works Administration
Program Description
The Public Works Administration Program helps plan, direct, and evaluate thirteen operating and capital
programs and provides department-wide administrative and fiscal support.
Objectives
Provide leadership and strategic
planning to enhance ongoing Department operations.
Manage staff, fiscal and other resources to ensure efficient
maintenance, inspection, operation and construction service delivery
Activities
Department Leadership and
Organization Development.
Administrative and Fiscal Support
Services.
Contract and Property Management.
Public Information Office.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $947,138 $980,902 $1,031,900 3% $1,066,209 3%
Contract Services $3,365 $2,800 $2,800 - $2,800 -
Other Operating Costs $18,419 $20,300 $25,3001 25% $25,300 -
Total Program $968,922 $1,004,002 $1,060,000 4% $1,094,309 3%
1 Increase due to adding Office Supply Expenditure back into budget after inadvertent deletion in Fiscal Health
Response Plan.
194 Packet Page 209
Operating Budget
General Fund Parks Maintenance
Parks Maintenance
Program Description
The Park Maintenance Program maintains City parks and landscaped areas as well as oversees contract
services for janitorial maintenance of restrooms and park buildings and landscape maintenance of smaller
parks and medians.
Objectives
Provide the public with safe and reliable parks facilities.
Partner with the Parks and Recreation Department to provide venues for recreational programs
and services
Activities
Park Maintenance.
Landscape Maintenance.
Training.
Event Support.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $994,091 $1,343,571 $1,247,503 (7%) $1,294,299 4%
Contract Services $418,772 $473,287 $473,287 - $473,287 -
Other Operating Costs $698,553 $973,070 $1,015,676 4% $1,060,578 4%
Total Program $2,111,416 $2,789,928 $2,736,466 (2%) $2,828,164 3%
195 Packet Page 210
Operating Budget
General Fund Swim Center Maintenance
Swim Center Maintenance
Program Description
The Swim Center Maintenance Program maintains the swimming and diving pool, the therapy pool, two
bathhouses, the deck areas, which includes all water treatment and mechanical equipment and Health
Department compliance at the pool complex located at Sinsheimer Park and referred to as the SLO Swim
Center.
Objectives
Maintain the aquatic facilities in a clean, safe, and efficient manner.
Activities
Skilled Craft Maintenance.
Specialized Technical Service.
Swimming Pool Operations.
Regulatory Compliance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $126,006 $134,697 $133,957 (1%) $136,639 2%
Contract Services $21,192 $24,900 $24,900 - $24,900 -
Other Operating Costs $312,145 $282,900 $290,358 3% $302,794 4%
Total Program $459,343 $442,497 $449,215 1% $464,333 3%
196 Packet Page 211
Operating Budget
General Fund Urban Forest Services
Urban Forest Services
Program Description
The Urban Forestry Program plants, maintains, and preserves trees in streets and parks by pruning,
removing, replacing, and plantings of trees in the City’s urban forest. The Program also provides staff
liaison support to the Tree Committee, the Downtown Association’s Urban Foresters, and, assist in tree
related development review activities.
Objectives
Provide a sustainable urban and community forest to accomplish several city goals, including
neighborhood wellness, climate change initiatives, aesthetic quality, and mobility safety.
Activities
Urban Forestry.
Maintaining existing tree inventory.
Downtown Support.
Tree Regulations.
Tree Committee.
Awareness and Special Events.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $462,409 $473,340 $474,512 - $490,288 3%
Contract Services $65,456 $58,528 $58,528 - $58,528 -
Other Operating Costs $16,643 $23,750 $23,750 - $23,750 -
Total Program $544,508 $555,618 $556,790 - $572,566 3%
197 Packet Page 212
Operating Budget
General Fund Facilities
Facilities
Program Description
The Facilities Maintenance Program provides interior and exterior maintenance services for City buildings;
oversees repairs to existing building features; manages minor capital projects and contract services for
HVAC, janitorial (where applicable), applicable fire suppression, limited first aid kit service, elevator
inspection, alarm monitoring and testing, sprinkler system testing and certification, pest control, and floor
refurbishing.
Objectives
Maintain City buildings in a clean, safe, and efficient manner.
Activities
Skilled Craft Maintenance.
Specialized Technical Services.
Contract Maintenance Services.
Building Improvements.
Project Consultation Support.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $541,615 $585,424 $581,491 - $614,539 6%
Contract Services $243,366 $271,250 $271,250 - $271,250 -
Other Operating Costs $369,071 $372,300 $383,180 3% $392,184 2%
Total Program $1,154,052 $1,228,974 $1,235,921 - $1,277,973 3%
198 Packet Page 213
Operating Budget
General Fund Streets and Sidewalk
Maintenance
Street and Sidewalk Maintenance
Program Description
The Street Maintenance Program maintains the paved portion of the streets and manages the sidewalk
maintenance program; repairs and reconstructs streets and the repair of sidewalks damaged by City
owned street trees; maintains street furnishings, signs, and pavement markings; provides regular
downtown trash pickup and oversees sidewalk scrubbing; and supports specific special events with traffic
control and provides weekly barricade installation for Farmer’s Market.
Objectives
To provide the community with safe and smooth public transportation infrastructure.
Activities
Pavement Maintenance.
General Street Maintenance.
Pavement Striping Maintenance.
Street Sign Maintenance.
Special Event Support.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $832,339 $984,790 $996,718 1% $1,047,147 5%
Contract Services $45,503 $69,150 $69,150 - $69,150 -
Other Operating Costs $246,200 $359,700 $359,700 - $359,700 -
Total Program $1,124,042 $1,413,640 $1,425,568 1% $1,475,997 4%
199 Packet Page 214
Operating Budget
General Fund Traffic Signals and Lighting
Traffic Signals and Lighting
Program Description
The Signal and Light Maintenance Program operates and maintains traffic signals and streetlights on City
streets, installing, operating, and monitoring the City’s traffic management and detection systems.
Objectives
Safe and efficient traffic flow for all modes of travel through signalized intersections.
Provide appropriate lighting for streets
and neighborhoods.
Activities
Traffic Signal Operations and
Maintenance.
Street Light Operations and
Maintenance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $218,457 $244,208 $243,876 - $250,572 3%
Contract Services $14,871 $13,800 $13,840 $13,881 -
Other Operating Costs $267,838 $284,150 $292,358 3% $293,080 -
Total Program $501,166 $542,158 $550,074 1% $557,533 1%
200 Packet Page 215
Operating Budget
General Fund Fleet
Fleet
Program Description
The Fleet Maintenance Program maintains and repairs all City vehicles and construction equipment except
those used in the Transit and Fire programs.
Objectives
Maintain a safe and reliable city fleet to enable efficient operations and emergency response.
Meet all regulations regarding emissions, safety and hazardous waste.
Activities
Vehicle and Construction Equipment
Maintenance.
Specialized Equipment Maintenance &
Safety Certification.
Safety Equipment Installation &
Maintenance.
Fleet Shop Equipment Maintenance &
Safety Certification.
Procurement.
Safety and Environmental Protection
Permitting.
Regulatory Programs.
Fabrication.
Fuel Station & Vehicle Wash Facility
Maintenance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $407,106 $483,393 $487,812 1% $503,241 3%
Contract Services $230,555 $117,825 $117,825 - $117,825 -
Other Operating Costs $518,458 $578,075 $578,075 - $578,075 -
Total Program $1,156,119 $1,179,293 $1,183,712 - $1,199,141 1%
201 Packet Page 216
Operating Budget
General Fund CIP Engineering
Capital Improvement Plan Engineering
Program Description
The CIP Project Engineering Program oversees design and construction of infrastructure projects in the
City’s Capital Improvement Plan (CI P) and provides inspection services for public infrastructure
improvements built by the private sector.
Objectives
Deliver the City’s capital construction program in a timely and cost-effective manner
Inspect private development to meet community needs and engineering standards
Activities
CIP Project Design
CIP Project Construction Management
Private Development Inspection
CIP Administration
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $1,695,951 $1,843,308 $1,924,291 4% $2,008,989 4%
Contract Services $40,214 $41,900 $41,900 - $41,900 -
Other Operating Costs $97,490 $60,600 $60,600 - $60,600 -
Total Program $1,833,655 $1,945,808 $2,026,791 4% $2,111,489 4%
202 Packet Page 217
Operating Budget
General Fund Transportation Planning
Transportation Planning and Engineering
Program Description
The Transportation Planning and Engineering Program manages analysis, planning, operations, design and
construction of the City's multimodal circulation systems.
Objectives
Enhance accessible regional transit, bicycle, and pedestrian mobility.
Create safe and accessible walking and bicycling opportunities.
Provide infrastructure supporting housing and reducing Vehicle Miles Traveled (VMT).
Enhance transit facilities and services
Support emerging transportation trends and technologies to transition towards sustainability.
Activities
Transportation Planning.
Traffic Engineering.
Other Transportation Projects.
Regulatory Compliance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $771,413 $838,066 $845,236 - $891,749 6%
Contract Services $68,725 $19,400 $26,400 36%2 $33,400 27%
Other Operating Costs $30,457 $34,905 $35,238 1% $35,577 1%
Total Program $870,595 $892,371 $906,874 2% $960,726 6%
2 $7,000 increase to Contract Services to cover contractual obligations with annual increases.
203 Packet Page 218
Operating Budget
General Fund Stormwater and Flood Control
Stormwater and Flood Control
Program Description
The Stormwater and Flood Control Program maintains storm drain facilities and creeks within the City,
coordinates emergency response during storms, and implements the City’s Storm Water Management
Plan.
Objectives
A well-maintained storm drainage
system that minimizes property damage
from flooding.
A creek system maintained to balance
conveyance with environmental
concerns.
Regularly swept streets to minimize
pollution entering storm drains and
creeks.
Cost-effective implementation of the
City’s Storm Water Management Plan.
Activities
Storm Water Management Plan
Implementation.
Storm Drain and Creek Maintenance.
Street Sweeping.
Storm Emergency Response.
Stormwater Code Enforcement.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $651,077 $725,305 $726,632 - $756,241 4%
Contract Services $176,187 $226,650 $226,650 - $226,650 -
Other Operating Costs $27,200 $50,950 $54,276 7% $54,681 1%
Total Program $854,464 $1,002,905 $1,007,558 - $1,037,572 3%
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BUSINESS ACTIVITIES
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UTILITIES
206 Packet Page 223
Operating Budget
Water & Sewer Fund Utilities
UTILITIES
Mission Statement
To provide essential services that support the community’s health, well-
being and quality of life.
About the Department
The Utilities Department provides essential services that support the community’s health, well -being, and
quality of life. Through its efforts, water for the communi ty is safely transported, treated, distributed,
used, collected, recovered and beneficially reused. These efforts are accomplished by the department’s
water and wastewater divisions. Additionally, the department manages the City’s solid waste, organic
waste, and recycling programs. Long range planning for water resources and infrastructure needs,
environmental stewardship and business management are required to provide these vital services and
are critical functions of the Utilities Department. In total there are 13 programs that constitute the Utilities
Department.
207 Packet Page 224
Operating Budget
Water & Sewer Fund Utilities
The department at a glance
Program 2019-20 2020-21
Water Admin/Engineering $769,703 $786,785
Water Source of Supply $11,705,490 $9,716,707
Water Treatment $2,882,223 $2,982,647
Water Distribution $1,913,914 $1,976,264
Water Resources $374,564 $387,828
Wastewater Admin/Engineering $854,227 $937,031
Wastewater Collections $1,128,958 $1,161,246
Environmental Compliance $270,465 $284,308
Water Resource Recovery $3,795,663 $3,995,345
Utilities Revenue $487,301 $501,742
Water Quality Lab $800,224 $803,224
Solid Waste Recycling $173,541 $178,889
Reservoir Operations $1,147,179 $1,174,544
Total Utilities $26,303,452 $24,886,560
Contract Services includes the debt service and operating budgets for both the Nacimiento and
Salinas reservoirs, in addition to routine services which include laboratory, legal, equipment
maintenance, etc.
Staffing
35%
Contract
Services
51%
Other
Operating
Expenditures
14%
EXPENDITURES BY FUNCTION
208 Packet Page 225
Operating Budget
Water & Sewer Fund Utilities
Utilities Department
(68.10 FTE)
Water
Water Administration &
Engineering
(4.80 FTE)
Water Source of Supply
(0.70 FTE)
Water Treatment
(11.45 FTE)
Water Distribution
(12.50 FTE)
Water Resources
(3.80 FTE)
Sewer
Wastewater
Administration &
Engineering
(4.50 FTE)
Wastewater Collections
(7.15 FTE)
Environmental
Compliance
(1.80 FTE)
Water Resource
Recovery
(12.80 FTE)
Utilities Revenue
(1.00 FTE)
Water Quality Lab
(3.70 FTE)
Reservoir Operations Reservoir Operations
(3.90 FTE)
Solid Waste Recycling
(1.00 FTE)
69.1 FTEs
209 Packet Page 226
Operating Budget
Water & Sewer Fund Utilities
Performance Measures
Measure/Explanation Target
2019-20
Target
2020-21
Drinking Water and Wastewater Treatment Compliance Rate
100% 100%
The Utilities department consistently complies with the drinking water quality standards monitored at
the Water Treatment Facility. The indicator is expressed as the percent of days each year that the water
treatment facility is in full compliance with applicable drinking water quality requirements. C ompliance
with the effluent quality standards and national pollutant discharge elimination system (NPDES) permit
for the Water Resource Recovery Facility is expressed as the percent of days each year that the water
treatment facility is in full compliance with applicable drinking water quality requirements.
Measure/Explanation Target
2019-20
Target
020-21
Safety – Incident Free Operations 0 0
Utilities strives for incident free operations including but not limited to injuries, exposure to potentially
hazardous agents, property loss and damage and motor vehicle accidents. Prevention by training,
meetings, pre-job work planning, risk assessments, audits and reporting. The indicator is expressed by
the goal of zero preventable incidents during the 2019-21 Financial Plan.
Measure/Explanation Target
2019-20
Target
2020-21
Self-Generated Electricity at the WRRF 5%
increaseincr
ease
increae0
5 % increase
The Water Resource Recovery Facility utilizes an on-site cogeneration unit to create electricity for the
plant. Currently, over one Gigawatt of electricity is created by this process. Staff is investigating process
improvement and expansion strategies to increase onsite electricity generation. The goal for this
measure is an annual increase in amount of energy produced over 2018-19 base year.
Measure/Explanation Target
2019-20
Target
2020-21
Capital Improvement Projects Completion 100% 100%
Utilities progress in the 2019-21 approved capital improvement project plan. The indicator is expressed
in the number of projects on schedule during the 2019-21 Financial Plan.
Workload Measures
Measure 2017-18 2018-19 2019-21 2020-21
Total Regulatory Inspections Performed 3,268 3,197 3,634 3,643
Public Education tours/events 89 95 111 111
Safety Trainings 122 150 175 175
Regulatory Reporting 805 820 815 815
Water delivered (acre feet) 5,909 5,983 6,050 6,220
210 Packet Page 227
Long-Term Forecasts
2018-19 Mid Year2019-20 2020-21 2021-22 2022-23 2023-24
Budget Budget Budget Budget Budget Budget
REVENUES BY TYPE
Water Services Charges 13,695,075$ 14,448,304$ 15,242,961$ 16,081,324$ 16,965,797$ 17,305,112$
Drought Surcharge Volumetric -$ -$ -$ -$ -$ -$
Base Fee Revenue 4,826,204$ 5,091,645$ 5,371,686$ 5,667,128$ 5,978,820$ 6,098,397$
Drought Surcharge - Base Fee -$ -$ -$ -$ -$ -$
Cal Poly Sales 913,894$ 964,158$ 1,017,187$ 1,073,132$ 1,132,154$ 1,154,797$
Recycled Water 600,000$ 633,000$ 667,815$ 704,545$ 743,295$ 758,161$
Development Impact Fees 800,000$ 800,000$ 800,000$ 800,000$ 800,000$ 800,000$
AB 939 Reimbursement 147,900$ -$ -$ -$ -$ -$
Investment & Property Revenue 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$
Proceeds from Debt 5,500,000$ 8,800,000$ 13,800,000$
Miscellaneous Revenue *298,000$ 298,500$ 299,010$ 299,530$ 300,061$ 300,602$
Water Sales - FHRP (start FY19)100,000$ 100,000$ 100,000$
TOTAL 21,431,073$ 27,885,607$ 32,348,658$ 24,675,659$ 39,770,127$ 26,467,069$
EXPENDITURE BY CATEGORY
Salaries & Benefits 4,120,798$ 4,137,824$ 4,274,596$ 4,491,034$ 4,622,380$ 4,790,979$
Operating Expenditures 11,851,066$ 13,508,070$ 11,522,977$ 11,623,119$ 11,729,804$ 11,838,653$
Capital Outlay 1,093,652$ 10,251,287$ 11,777,848$ 3,763,419$ 8,703,282$ 9,444,945$
Debt Service 1,995,859$ 2,543,134$ 2,552,134$ 3,120,310$ 3,528,718$ 2,958,218$
Transfers Out 2,432,258$ 2,670,367$ 2,721,448$ 2,788,784$ 2,858,148$ 2,930,310$
TOTAL 21,493,634$ 33,110,682$ 32,849,003$ 25,786,667$ 31,442,332$ 31,963,105$
EXPENDITURE BY FUNCTION
General Government 2,432,258$ 2,670,367$ 2,721,448$ 2,788,784$ 2,858,148$ 2,930,310$
Water Source of Supply 10,689,139$ 12,530,947$ 10,339,506$ 10,414,853$ 10,494,721$ 10,577,152$
Water Treatment 4,615,955$ 13,500,895$ 14,194,319$ 5,738,236$ 12,683,587$ 12,949,743$
Water Distribution 2,349,131$ 3,163,914$ 4,341,265$ 5,426,991$ 3,918,552$ 4,021,723$
Utilities Services 486,936$ 374,564$ 387,828$ 423,406$ 435,537$ 450,487$
Water Administration 920,215$ 869,994$ 864,638$ 994,396$ 1,051,787$ 1,033,690$
TOTAL 21,493,634$ 33,110,682$ 32,849,003$ 25,786,667$ 31,442,332$ 31,963,105$
CHANGES IN FINANCIAL POSITION
Working Capital - Beginning 25,457,367$ 25,394,806$ 20,169,731$ 19,669,386$ 18,558,378$ 26,886,173$
Revenues over (under) Expenditure (62,561)$ (5,225,075)$ (500,345)$ (1,111,008)$ 8,327,795$ (5,496,035)$
Working Capital - Year End 25,394,806$ 20,169,731$ 19,669,386$ 18,558,378$ 26,886,173$ 21,390,137$
Operating Reserve 4,079,996$ 4,571,879$ 4,214,231$ 4,404,650$ 4,547,810$ 4,503,632$
Rate Stabilization 1,943,517$ 2,050,411$ 2,163,183$ 2,282,158$ 2,407,677$ 2,455,831$
CALPERS Down Payment 252,465$ 180,332$ 180,332$ 120,222$ 120,222$
UFL Trust Fund 120,222$ 120,222$ 120,222$ 120,222$ 96,177$
Unreserved Working Capital - Year End 19,371,292$ 13,174,754$ 12,991,418$ 11,571,016$ 19,690,242$ 14,214,276$
Water Fund Long-Term Forecast
211 Packet Page 228
Budget at a Glance
Water Fund
Water Fund
After an above-average year of precipitation, the City’s three surface water reservoirs are at, or near full
capacity. This, along with the expansion of our groundwater program, analysis of increased recycled water
deliveries, consideration and adjustment of our water supply accounting to account for the impacts of the
climate change, and the community’s strong water conservation ethic have set the course for the City’s
long-term water supply health.
The City is in its first year of billing following a significant change in the water rate structure. With the
significant rain this year, and the corresponding low water use, the new rate structure was tested and
shown to provide fund stability in years with unusually low water demand. After a thorough analysis, the
rate structure improvements and forecasted rate increases ensured the fiscal health of the Water Fund.
2019-21 Financial Plan
Key Assumptions
When preparing the budget, the Water Division analyzes past financial results, reviews upcoming
operational and capital needs, current and future debt obligations to assess the financial position of the
fund for its continued health. The budget prepared for the two-year financial plan follows a “zero based
budgeting” approach, considering each line item and its future needs. Asset condition, infrastructure age,
and future capacity needs are driving factors in determining the Capital Project plan and debt financing
evaluations.
The needed revenue is then evaluated based on current rates and income levels, analysis of current water
use and effects on future revenue potential to provide a rate recommendation and possible increases.
FUND REVENUES
As an enterprise fund, the Water Division finances its operation mainly with rates charged for water
services. According to its mandate, rates must be sufficient to cover operation, capital asset
improvements and maintenance, debt obligations, and appropriate reserve levels to keep the fund
healthy and prepared for unforeseen and future funding needs.
Revenues are collected from multiple sources which include:
•Water Service Charges combining a base
fee and volumetric charge per unit
•Sales to Cal Poly
•Development Impact Fees
•Miscellaneous charges such as account
set-up fees, late charges, meter sales,
and connection fees
•Investment and Property Revenue
212 Packet Page 229
Budget at a Glance
Water Fund
Revenue Forecast
Revenues Actual
2017-18 2018-19 2019-20 2020-21
Investment and Property Revenues 127,950$ 50,000$ 50,000$ 100%50,000$ 100%
Water Service Charges 17,326,213$ 15,308,969$ 16,145,462$ 105%17,027,962$ 105%
Water Base Fee 2,239,418$ 4,826,204$ 5,091,645$ 105%5,371,686$ 106%
Development Impact Fees 2,131,345$ 800,000$ 800,000$ 100%800,000$ 100%
Other Revenue 718,482$ 445,900$ 298,500$ 67%299,010$ 100%
Debt Proceeds 84,601$ -$ 5,500,000$ 8,800,000$ 160%
Total Revenue 22,628,009$ 21,431,073$ 22,385,607$ 104%32,348,658$ 145%
Projected
*Chart excludes debt proceeds.
213 Packet Page 230
Budget at a Glance
Water Fund
FUND EXPENDITURES
Operating Programs
The Water Division’s five operating program costs are summarized below. The summary reflects the net
operating program budget amounts for the 2019-21 Financial Plan. A rigorous and thorough review of
operating cost was conducted in collaboration with each program supervisor to derive the budget
necessary to provide the community with safe and reliable drinking water.
Operating Expenses 2018-19
Budgeted
2019-20
Projected
2020-21
Projected
Water Admin $846,465 $769,703 $786,785
Source of Supply $10,013,682 $11,705,490 $9,664,049
Water Treatment $2,748,453 $2,882,223 $2,982,647
Water Distribution $1,876,329 $1,913,914 $1,976,265
Utilities Services $486,936 $374,564 $387,828
General Government $2,432,258 $2,535,891 $2,586,597
Total Expenses: $18,404,123 $20,181,785 $18,384,171
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Water
Admin
Source of
Supply
Water
Treatment
Distribution Utility
Services
General
Government
Expenditures 2018-19 Expenditures 2019-20 Expenditures 2020-21
214 Packet Page 231
Budget at a Glance
Water Fund
Proposed Enhancements to Operating Programs
There are several proposed program enhancements for the Water Fund.
•A one-time increase to Source of Supply operating program budget due to the Salinas Pipeline
repair project, Santa Margarita pipeline relocation and the Army Corp of Engineers assessment
(once every five years). Ongoing increases are due to County Utility Operations staff returning to
full staffing levels.
•An ongoing increase due to additional electrical service at existing pump stations associated
with the Telemetry Upgrade Project.
•A one-time increase for the purchase of new leak detection equipment.
•The Water Treatment Plant expects increased operations and maintenance costs, overtime
costs, and increased chemical costs due to vendor pricing. In addition, there is a one-time
increase to cover specific maintenance needs.
•An ongoing increase in the Water Administration and Engineering program to maintain the
future need for new and ongoing regulatory, organizational, and infrastructure study services.
Program Enhancements One-Time Ongoing
2019-20 2020-21 2019-20 2020-21
1 Nacimiento Operating Expenses $255,500
2 Salinas Reservoir – Pipeline Repair $1,750,000 $142,000 $142,000
3 Water Distribution- Electric Service $9,000 $9,000
4 Water Distribution-Equipment $25,000
5 Water Treatment-TTHM $102,620 $102,620
6 Water Treatment-Chemicals $40,895 $41,391
7 Water Treatment Plant Equipment $10,000 $10,000
8 Water Treatment Plant- Electric $13,000 $13,000
9 Water Treatment Plant Overtime $42,000 $42,000
10 Water Administration-Various
Studies
$37,550 $37,550
11 CIP Staffing Resources $71,101 $73,537
Water Fund Subtotal $2,082,500 $52,000 $416,166 $419,098
215 Packet Page 232
Budget at a Glance
Water Fund
Capital Improvement Plan
The City of San Luis Obispo Water Division maintains a complex infrastructure including:
▪Water Treatment Plant treating 1.9 billion gallons of raw water annually from three
surface reservoirs
▪145 miles of water distribution pipes
▪10 storage tanks, and 15 pressure zones
▪15,300 water connections
▪2,000 fire hydrants
Capital expenses are forecast based on infrastructure maintenance and repair history, individual project
budget estimates, regulatory requirements, and projected changes in community demographics.
Maintaining the water system infrastructure, including major equipment upgrades, ongoing treatment
processes, technology, and planning for long-term infrastructure upgrade and replacement is essential to
providing protective and reliable water services for the community.
Capital Improvement Plan Project Expenses 2019-24
Project budget estimates in the capital plan forecast include inflationary adjustments assuming a
moderate increase in material costs over time (e.g., price per foot of pipe). The 2019-24 five-year CIP
program continues investments in the City’s water infrastructure and begins the pressure zone
consolidation per the new water model findings. Also, included in the capital plan is the construction of
the Water Treatment Plant Energy Efficiency Project, which will reduce electrical demands by using best
available technologies for water disinfection, and construct a hydroelectric generation facility that will get
us closer to an energy neutral facility. A detailed listing of the capital improvement projects can be found
in Exhibit A.3.
$1,093,652
216 Packet Page 233
Budget at a Glance
Water Fund
Debt Service
Water Fund Detail and Debt Retirement
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year
2020
2004 State Water Resource Control Board $2,441,183 $525,457 2025
2012 Water Revenue Refunding Bond $1,585,000 $567,800 2023
2018 Refunding Bond $237,900 $28,111 2039
2018 Refunding Water Bond (Refund 2006 Bonds) $9,225,000 $883,900 2035
Total Water Fund Debt $13,489,083 $2,005,268
The Water Fund is in the process of securing a 20-year loan through the State Infrastructure Bank (I-Bank)
for needed upgrades at the Water Treatment Plant. The anticipated loan amounts to $11.3 million at a
3.21% interest rate.
217 Packet Page 234
Budget at a Glance
Water Fund
WATER RATES
Residential:
Current Rates1 2019-20 Rates 2020-21 Rates
Monthly Base Fee $20.61 $21.74 $22.94
Usage (per unit cost)2
Tier 1: 0 to 5 units $5.90 $6.22 $6.56
Tier 2: 6 to 12 units $6.87 $7.25 $7.65
Tier 3: 13+ units $12.59 $13.28 $14.01
Multi -Family, Non -Residential, Irrigation:
Current Rates1 2019-20 Rates 2020-21 Rates
Base Fee by Water Meter
Size
Monthly Base Fee
¾ inch or less $20.61 $21.74 $22.94
1-inch meter $34.40 $36.29 $38.29
1.5-inch meter $68.65 $72.43 $76.41
2-inch meter $109.85 $115.89 $122.26
3-inch meter $206.10 $217.44 $229.40
4-inch meter $343.55 $362.45 $382.38
6-inch meter $686.95 $724.73 $764.59
8-inch meter $1,099.15 $1,159.60 $1,223.38
Usage (per unit cost)2 Per Unit Cost
Multi-Family – all use $6.73 $7.10 $7.49
Non-Residential – all use $8.17 $8.62 $9.09
Landscape Irrigation – all
use
$10.02 $10.57 $11.15
Water System Access
Charge3 $83.57 $88.17 $93.02
218 Packet Page 235
Operating Budgets
Employee Summary
Employee Summary Water
Program 2018-19 2019-20
Reservoir Operations 4.10 4.10
DEP DIR-UTILITIES/WATER 0.10 0.10
DIRECTOR OF UTILITIES 0.10 0.10
ADMIN ANALYST 0.10 0.10
UTILITIES BUSINESS MGR 0.10 0.10
UTILITIES ENGINEER 0.10 0.10
UTLITIES PROJECT MGR 0.10 0.10
SAFETY & TECH TRN ENGINEER 0.10 0.10
WHALE RCK RESERVOIR SUPER 1.00 1.00
CONTROL SYSTEMS TECH 0.10 0.10
CONTROL SYSTEMS ADMIN 0.10 0.10
SUPERVISING ADM ASST 0.10 0.10
ADMINISTRATIVE ASST I 0.10 0.10
WATER SUPPLY OPERATOR SBP 1.00 1.00
WATER SUPPLY OPERATOR SBP 1.00 1.00
Water Resources 3.80 2.55
WATER RESOURCE PROG MGR 0.80 0.55
WATER RESOURCES TECH 1.00 0.00
WATER RESOURCES TECH 1.00 1.00
WATER RESOURCES TECH 1.00 1.00
Water Admin/Engineering 4.10 4.10
DEP DIR-UTILITIES/WATER 0.90 0.90
DIRECTOR OF UTILITIES 0.40 0.40
ADMIN ANALYST 0.40 0.40
UTILITIES BUSINESS MGR 0.40 0.40
UTILITIES ENGINEER 0.40 0.40
UTILITIES PROJECTS MGR 0.40 0.40
SAFETY & TECH TRN ENGINEER 0.40 0.40
SUPERVISING ADM ASST 0.40 0.40
ADMINISTRATIVE ASST I 0.40 0.40
219 Packet Page 236
Operating Budgets
Employee Summary
Program 2018-19 2019-20
Water Distribution 12.50 12.50
3430-01 - WATER DISTRIBUTION SUPER 1.00 1.00
4179-01 - WATER DISTRIBUTION CHIEF OPERATOR 1.00 1.00
4363-01 - CONTROL SYSTEMS TECH 0.25 0.25
4364-01 - CONTROL SYSTEMS ADMIN 0.25 0.25
4575-01 - UNDERGROUND UTIL LOCATOR 1.00 1.00
4773-01 - WATER DISTR SYS OPER SBP 1.00 1.00
4773-02 - WATER DISTR SYS OPER SBP 1.00 1.00
4773-03 - WATER DISTR SYS OPER SBP 1.00 1.00
4773-04 - WATER DISTR SYS OPER SBP 1.00 1.00
4773-05 - WATER DISTR SYS OPER SBP 1.00 1.00
4773-06 - WATER DISTR SYS OPER SBP 1.00 1.00
4773-07 - WATER DISTR SYS OPER SBP 1.00 1.00
4773-08 - WATER DISTR SYS OPER SBP 1.00 1.00
4773-10 - WATER DISTR SYS OPER SBP 1.00 1.00
Water Source of Supply 0.70 0.70
3410-01 - WRRF SUPERVISOR 0.10 0.10
4777-03 - WATER RES REC MAINT SBP 0.10 0.10
4778-05 - WATER RES REC OPERATE SBP 0.50 0.50
Water Treatment 11.45 11.45
3185-01 - LABORATORY MANAGER 0.10 0.10
3460-01 - WATER TRT PLNT SUPER 1.00 1.00
4363-01 - CONTROL SYSTEMS TECH 0.20 0.20
4364-01 - CONTROL SYSTEMS ADMIN 0.20 0.20
4775-01 - LABORATORY ANALYST SBP 0.75 0.75
4775-02 - LABORATORY ANALYST SBP 0.10 0.10
4775-03 - LABORATORY ANALYST SBP 0.10 0.10
4776-01 - WATER TREAT PLANT OPR SBP 1.00 1.00
4776-02 - WATER TREAT PLANT OPR SBP 1.00 1.00
4776-03 - WATER TREAT PLANT OPR SBP 1.00 1.00
4776-04 - WATER TREAT PLANT OPR SBP 1.00 1.00
4776-05 - WATER TREATMENT PLANT OPR SBP 1.00 1.00
4776-06 - WATER TREAT PLANT OPR SBP 1.00 1.00
4776-07 - WATER TREAT PLANT OPR SBP 1.00 1.00
4781-01 - WATER TREAT PL CHIEF MAINT TECH 1.00 1.00
4790-01 - WTP CHIEF OPERATOR 1.00 1.00
Total Water Fund 36.65 35.40
220 Packet Page 237
Operating Budget
Water & Sewer Fund Water Administration
Water Administration
Program Description
The Water Fund’s Administration program provides guidance and direction for effective water resource
management for the various Water Fund programs. It evaluates and provides strategic and long -term
planning and engineering for the water system.
Objectives
Manage the Water Enterprise Fund financial operations and recommend rates and revenues
needed to support program and service objectives.
Continue implementation and tracking of strategic planning activities.
Continue safety assessments and ensure compliance with safety regulations.
Implement and monitor the Fiscal Health Response Plan for the water fund.
Activities
Administration.
Strategic Planning.
Safety.
Engineering.
Financial Operations.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $643,935 $664,627 $634,123 (5%) $651,055 2%
Contract Services $109,889 $59,600 $96,650 (38%)1 $96,650 -
Other Operating Costs $30,641 $38,000 $38,930 (1%) $39,080 -
Total Program $784,465 $762,227 $769,703 (1%) $786,785 2%
1 Increase in budget to fund new and ongoing regulatory, organizational, and infrastructure studies.
221 Packet Page 238
Operating Budget Utilities
Water Fund Water Source of Supply
Water Source of Supply
Program Description
The Water Source of Supply program procures raw water from the City’s three primary surface sources:
Whale Rock Reservoir, Salinas Reservoir (Santa Margarita Lake), and Nacimiento Reservoir to provide a
clean, dependable supply of raw water for treatment at the City’s water treatment plant. An additional
source of supply offers highly treated recycled water from the City’s Water Resource Recovery Facility
that is used for irrigation and other approved purposes such as dust control and compaction on
construction sites.
Objectives
Deliver raw water supplies in a reliable, cost-effective manner.
Operate, maintain, and repair supply facilities.
Maximize production and use of recycled water.
Activities
Manage the procurement of water from available sources.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $116,720 $89,760 $92,225 3% $97,053 7%
Contract Services $8,402,266 $9,198,471 $11,468,865 20%2 9,462,984 (21%)
Other Operating Costs $98,829 $138,900 $144,400 4% $156,670 8%
Total Program $8,617,815 $9,427,131 $11,705,490 19% $9,716,707 (20%)
2 Increase in budget due to the City’s contribution to fund the Salinas Pipeline repair and to fund an Army Corp of
Engineers Preliminary Assessment.
222 Packet Page 239
Operating Budget Utilities
Water Fund Water Treatment
Water Treatment
Program Description
The Water Treatment program receives raw water from three surface reservoirs, treats it to meet potable
water standards, and delivers it into the water distribution system. The Water Treatment Pl ant produces
an average of 4.7 million gallons of potable water per day for the City of San Luis Obispo and Cal Poly.
Objectives
Protect public health - Continue to provide uninterrupted supply of high-quality water to the
distribution system.
Continue to meet all treatment standards as required by regulatory agencies.
Continue succession planning goals through development of standard operating procedures,
internship program, etc.
Continue development of computerized maintenance database and work order system.
Continue development and implementation of Capital Improvement Projects.
Activities
Reservoir water treatment.
Laboratory analysis.
Equipment and grounds maintenance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $1,879,288 $1,524,522 $1,619,503 6% $1,659,601 5%
Contract Services $202,862 $181,300 $284,020 36%3 $285,080
Other Operating Costs $681,410 $913,850 $978,700 (7%) $1,037,966 6%
Total Program $2,763,560 $2,619,672 $2,882,223 9% $2,982,647 5%
3 Increase in budget to fund various additional operations and maintenance costs, such as a TTHM (trihalomethanes)
service contract for a new analyzer, increased permit fees, increased sludge hauling costs, and new federal sampling
requirements.
223 Packet Page 240
Operating Budget Utilities
Water Fund Water Distribution
Water Distribution
Program Description
The Water Distribution Program is responsible for the delivery of potable water from the Water Treatment
Plant and wells to system users and fire hydrants via 12 water storage facilities, seven pump stations, and
approximately 180 miles of water mains. The Water Distribution Program also delivers recycled water
from the Water Resource Recovery Facility to landscape irrigation users via approximately nine miles of
“purple pipelines”.
Objectives
Continue the water distribution system improvements in accordance with the Capital
Improvement Plan.
Design, construct, and implement the recommendations in the Water System Master Plan.
Maintain compliance with all applicable regulations and protect public health.
Activities
Pump station, tank, potable, and
recycled water system maintenance.
Water service installation and service
renewal.
Fire hydrant installation.
Backflow and cross-connection control.
USA mark-outs.
Bacteriological sampling.
Low Threat Discharge Permit
compliance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $1,508,383 $1,509,571 $1,527,189 1% $1,585,839 5%
Contract Services $82,026 $92,230 $98,000 6% $98,100
Other Operating Costs $237,424 $268,875 $288,725 7% $292,325 1%
Total Program $1,827,833 $1,870,676 $1,913,914 2% $1,976,264 5%
224 Packet Page 241
Operating Budget Utilities
Water Fund Water Resources
Water Resources
Program Description
The Water Resources program coordinates the planning, development, implementation, and regulatory
reporting for programs and services related to recycled water, water conservation, and stormwater
pollution prevention.
Objectives
Increase water conservation and water use efficiency opportunities within the community.
Implement water conservation programs in alignment with California’s goals for making water
conservation a way of life.
Monitor development trends and City growth and ensure water resources are available.
Increase the beneficial use of recycled water to offset potable water use and to sustain local water
supplies.
Activities
Water conservation.
Water recycling.
Storm Water Management Plan
implementation.
Customer assistance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $430,326 $376,020 $264,784 (42%)4 $281,048 (1%)
Contract Services $37,628 $77,370 $72,530 (7%) $67,530 (7%)
Other Operating Costs $40,941 $45,150 $37,250 (21%) $39,250 5%
Total Program $508,895 $498,540 $374,564 (33%) $387,828
4 Reductions due to costs allocated to the new Solid Waste Recycling Program
225 Packet Page 242
Water Fund Capital Improvement Plan
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $10,223,935 $11,612,875 $3,744,378 $ 8,707,253 $ 9,436,000 $ 43,724,441
Asset Replacement $- $ 175,000 $- $ - $ - $ 175,000
Grand Total $10,223,935 $11,787,875 $3,744,378 $ 8,707,253 $ 9,436,000 $ 43,899,441
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Buchon-Santa Rosa Intersection Improvements $- $ 150,000 $- $ - $ - $ 150,000
Energy Efficiency Project $5,500,000 $8,800,000 $- $ - $ - $ 14,300,000
Fire Hydrants $ 40,000 $ 40,000 $ 40,000 $40,000 $40,000 $ 200,000
Fleet Replacement $ 180,000 $- $- $95,000 $ - $ 275,000
Utilities Hybrid Sedan $- $- $- $17,500 $ 17,500
Water Compact Pickup $- $- $- $35,000 $ - $ 35,000
Water Distributions Medium Duty Truck $ 180,000 $- $- $ - $ - $ 180,000
Water Hybrid Sedan $- $- $- $35,000 $ - $ 35,000
Water Trailer $- $- $- $ 7,500 $ - $ 7,500
Fredericks Paving $- $- $- $300,000 $ - $ 300,000
IT Replacement $ 46,935 $ 11,875 $ 10,378 $13,753 $ - $ 82,941
City SAN $- $- $- $ 8,146 $ - $ 8,146
Fire Radio Receive Site at Fire Station #4 $- $4,000 $- $ - $ - $ 4,000
Firewall Replacement $ 11,864 $- $- $ - $ - $ 11,864
Network Security Upgrade $9,126 $- $- $ - $ - $ 9,126
Network Switching Infrastructure Equipment $3,090 $- $- $ - $ - $ 3,090
Uninterruptible Power Supplies $- $- $2,503 $ - $ - $ 2,503
Virtual Private Network Replace $8,063 $- $- $ - $ - $ 8,063
VMware Infrastructure Upgrade $ 14,792 $7,875 $7,875 $ - $ - $ 30,542
Wireless System Citywide $- $- $- $ 5,607 $ - $ 5,607
Major Facility Maintenance $- $- $- $ 2,500 $10,000 $ 12,500
879 Morro - Roof $- $- $- $ 2,500 $10,000 $ 12,500
Mid-Higuera Bypass $- $ 25,000 $- $ - $ - $ 25,000
Reservoir Maintenance $1,200,000 $ 275,000 $- $ 6,550,000 $ 7,300,000 $ 15,325,000
226Packet Page 243
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Package Thickener and Reservoir 2 Covers $ 150,000 $- $- $50,000 $ - $ 200,000
Reservoir 1 and 2 covers $ 250,000 $- $- $ - $ - $ 250,000
Reservoir 2 Replacement $ 800,000 $- $- $ 6,500,000 $ 7,300,000 $ 14,600,000
Wash water tank #1 $- $ 275,000 $- $ - $ - $ 275,000
Groundwater Basin Management $ 150,000 $ 150,000 $ 150,000 $150,000 $150,000 $ 750,000
Trihalomethanes Removal $1,650,000 $- $- $ - $ - $ 1,650,000
Treatment Major Facilities Maintenance $ 327,000 $ 186,000 $ 194,000 $109,000 $109,000 $ 925,000
Air Compressor and Dryer Maintenance $ 36,000 $ 36,000 $ 36,000 $36,000 $36,000 $ 180,000
Chemical System Maintenance $ 30,000 $ 31,000 $ 33,000 $33,000 $33,000 $ 160,000
EIM Actuator Replacement-Filter Effluent Valves $ 54,000 $- $- $ - $ - $ 54,000
Ozone System Maintenance $ 113,000 $ 119,000 $ 125,000 $40,000 $40,000 $ 437,000
Sodium Hydroxide Storage Tank Replacement $ 94,000 $- $- $ - $ - $ 94,000
Trench Repairs $ 200,000 $ 200,000 $ 200,000 $200,000 $200,000 $ 1,000,000
Water Meters and Boxes $ 90,000 $ 90,000 $ 90,000 $90,000 $90,000 $ 450,000
Water Valve Cover Adjustments $ 50,000 $ 30,000 $ 30,000 $30,000 $30,000 $ 170,000
Waterline Replacements $ 790,000 $1,830,000 $3,030,000 $ 1,127,000 $ 1,507,000 $ 8,234,000
Bee Bee, Cuesta, Loomis $ 100,000 $1,650,000 $- $ - $ - $ 1,750,000
Craig, Christina, Jaycee $- $ 180,000 $1,980,000 $ - $ - $ 2,160,000
Patricia, Highland, La Entrada $- $- $- $127,000 $ 1,397,000 $ 1,524,000
Point Repair $ 690,000 $- $1,050,000 $ 1,000,000 $10,000 $ 700,000
Serrano Zone Consolidation $- $- $- $ - $100,000 $ 100,000
Grand Total $10,223,935 $11,787,875 $3,744,378 $ 8,707,253 $ 9,436,000 $ 43,899,441
227Packet Page 244
Sewer -Long-Term Forecasts
2019-20 2020-21 2021-22 2022-23 2023-24
Budget Budget Budget Budget Budget
REVENUES BY TYPE
Sewer Service Charges 11,426,800$ 12,169,542$ 12,960,562$ 13,802,999$ 14,217,089$
Base Fee Revenue*4,301,687$ 4,581,296$ 4,879,081$ 5,196,221$ 5,352,107$
Cal Poly Sales 962,745$ 1,025,323$ 1,091,969$ 1,162,947$ 1,197,836$
Development Impact Fees 300,000$ 300,000$ 300,000$ 300,000$ 300,000$
Industrial User Charges 85,000$ 85,000$ 85,000$ 85,000$ 85,000$
Investment & Property Revenue 50,000$ 50,000$ 50,000$ 50,000$ 50,000$
Proceeds from Debt Financing 64,310,573$ 43,099,819$ 15,920,563$ 426,625$
Miscellaneous Revenue*306,642$ 306,642$ 312,775$ 319,030$ 325,411$
TOTAL 81,743,447$ 61,617,623$ 35,599,950$ 21,342,822$ 21,527,443$
EXPENDITURE BY CATEGORY
Salaries & Benefits 4,335,683$ 4,530,392$ 4,746,573$ 4,882,249$ 5,025,050$
Operating Expenditures 3,001,155$ 3,152,502$ 3,199,790$ 3,247,786$ 3,296,503$
Capital Outlay 65,484,055$ 45,770,079$ 20,156,697$ 5,505,691$ 1,225,000$
Debt Service 4,316,151$ 4,318,410$ 7,276,470$ 7,273,125$ 7,274,423$
Transfers Out 2,566,897$ 2,615,853$ 2,665,793$ 2,716,445$ 2,768,416$
TOTAL 79,703,941$ 60,387,236$ 38,045,323$ 23,625,296$ 19,589,392$
EXPENDITURE BY FUNCTION
General Government 2,566,897$ 2,615,853$ 2,665,793$ 2,716,445$ 2,768,416$
Wastewater Collection 2,490,969$ 4,266,713$ 6,103,922$ 6,675,245$ 2,818,676$
Environmental Compliance 305,465$ 284,308$ 295,170$ 302,768$ 310,741$
Water Resource Recovery 72,175,375$ 50,974,106$ 26,628,547$ 11,407,396$ 11,231,935$
Utilities Revenue 487,301$ 501,742$ 512,596$ 522,641$ 533,031$
Water Quality Lab 800,223$ 803,223$ 835,482$ 856,205$ 877,884$
Sewer Customer Service -$ -$ -$ -$ -$
Wastewater Administration 877,710$ 941,291$ 1,003,813$ 1,144,597$ 1,048,709$
TOTAL 79,703,941$ 60,387,236$ 38,045,323$ 23,625,296$ 19,589,392$
-$ -$ -$ -$ -$
CHANGES IN FINANCIAL POSITION
Working Capital - Beginning 30,312,056$ 32,351,562$ 33,581,948$ 31,136,575$ 28,854,101$
Revenues over (under) Expenditures 2,039,506$ 1,230,387$ (2,445,373)$ (2,282,474)$ 1,938,051$
Working Capital - Year End 32,351,562$ 33,581,948$ 31,136,575$ 28,854,101$ 30,792,152$
Operating Reserve 2,843,977$ 2,923,431$ 3,577,725$ 3,623,921$ 3,672,878$
Rate Stabilization 834,562$ 888,808$ 946,581$ 1,008,108$ 1,038,352$
CALPers Down Payment 251,535$ 179,668$ 179,668$ 119,778$ 119,778$
UFL Trust Fund 119,778$ 119,778$ 119,778$ 119,778$ 95,823$
Unreserved Working Capital - Year End 28,301,710$ 29,470,263$ 26,312,823$ 23,982,515$ 25,865,321$
Sewer Fund Long-Term Forecast
228 Packet Page 245
Budget at a Glance
Sewer Fund
Sewer Fund
Environmental regulation, construction of major projects, infrastructure renewal, climate change, energy
and a new generation of staff will drive the wastewater business in 2019. Increased and new regulation
continue to impact all aspects of the wastewater division, with all fields experiencing new, more stringent
and/or additional requirements. The Water Resource Recovery Facility (WRRF) project will require diligent
and comprehensive management and operations during the project’s three- and a half-year construction
phase. Prioritized replacement or rehabilitation of sewer mainlines, lift stations, and manholes are crucial
to keep ahead of the utility’s deteriorating condition and meet increased regulations and community
expectations. Concerted efforts to better manage private infrastructure, such as sewer laterals, has
become an essential element of wastewater policies and practices. Climate change, energy requirements,
and energy costs will continue to drive a need to explore additional operating efficiencies and
opportunities to generate additional power. A new generation of water professionals has arrived and with
them the need to provide required training, time to learn and adjust to a new career, and mentoring.
2019-21 Financial Plan
Key Assumptions
When preparing a new budget, the Wastewater Division analyzes the Sewer Fund’s past financial results,
upcoming operational and capital needs, current and future debt obligations, and the financial outlook of
the fund ten years into the future. The financials prepared for the two-year financial plan follows a “zero
based budgeting” approach, considering each line item and its future need anew. The condition,
infrastructure age, and future capacity needs are driving factors in determining the Capital Project plan
presented in this report and influence the assessment of debt issuance needs. This forms the base for the
evaluation of required revenue and the rate levels needed to support ongoing operation for wastewater
collection and treatment.
229 Packet Page 246
Budget at a Glance
Sewer Fund
FUND REVENUES
As an enterprise fund, the Wastewater Division finances its operation mainly with rates charged for sewer
services. Additional revenue is collected from development impact fees, and sewer account related
charges. In accordance with its mandate, sewer rates need to be sufficient to cover operation, capital
asset improvements and maintenance, debt obligations, and appropriate reserve levels to keep the Sewer
Fund healthy and prepared for unforeseen and future funding needs. Sewer Fund revenue is collected
from multiple sources which include:
•Sewer Service Charges, including a base
fee and volumetric charge per unit
•Sales to Cal Poly
•Development Impact Fees
•Industrial User Fees
•Misc. Charges such as account set-up
fees, late charges, meter sales, and
connection fees.
•Investment and Property Revenue
Revenue Forecast
Revenues
2018-19 2019-20 2020-21
Investment and Property Revenues 50,000$ 50,000$ 100%50,000$ 100%
Sewer Service Charges 11,773,250$ 12,474,545$ 106%12,474,545$ 100%
Sewer Base Fee 4,058,195$ 4,301,687$ 106%4,301,687$ 100%
Development Impact Fees 300,000$ 300,000$ 100%300,000$ 100%
Other Revenue 298,000$ 306,642$ 103%306,642$ 100%
Proceeds fromn Debt Financing 14,327,203$ 64,310,573$ 449%64,310,573$ 100%
Total Revenue 30,806,648$ 81,743,447$ 265%81,743,447$ 100%
Projected
*Chart excludes proceeds from debt financing.
$-
$5,000,000
$10,000,000
$15,000,000
2018-19 2019-20 2020-21
Projected
Sewer Revenue
Investment and Property Revenues Sewer Service Charges
Sewer Base Fee Development Impact Fees
Other Revenue
230 Packet Page 247
Budget at a Glance
Sewer Fund
FUND EXPENDITURES
Operating Programs
The Wastewater Division’s five operating program costs are summarized below. The summary of
operating programs reflects the net operating program budget amounts for 2019-21. A rigorous and
thorough review of operating costs and trends was conducted in development of the proposed budget in
collaboration with all program supervisors to derive the budget necessary to meet regulatory
requirements and continue to provide protective, reliable wastewater services to the community.
Operating Expenses 2018-19
Budgeted
2019-20
Projected
2020-21
Projected
Wastewater Administration $1,066,390 $854,227 $937,031
Wastewater Collection $1,242,309 $1,127,958 $1,161,245
Environmental Compliance $286,236 $270,465 $284,308
Water Resource Recovery $4,082,207 $3,795,663 $3,995,345
Utilities Revenue $532,624 $487,301 $501,742
Water Quality Lab $804,426 $800,224 $803,223
General Government $2,538,409 $2,429,724 $2,478,348
Total Expenses: $8,014,192 $9,765,562 $10,161,242
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Operating Expenditures
Projected 2018-19 Projected 2019-20 Projected 2020-21
231 Packet Page 248
Budget at a Glance
Sewer Fund
Proposed Program Enhancements
•One-time and ongoing increases to the Water Resource Recovery Facility operating program due
to increased training, overtime, chemical, and electrical costs, an annual service warranty for the
high-speed blower, software licensing costs and a permit fee increase.
•An ongoing increase in the Wastewater Administration and Engineering program to maintain the
future need for new and ongoing regulatory, organizational and infrastructure study services. An
additional ongoing increase will fund membership with the California Association of Sanitation
Agencies (CASA).
•
Program Enhancements
One-Time Ongoing
2019-20 2020-21 2019-20 2020-21
1 WRRF Maintenance Warranty $35,000 $19,225 $19,255
2 WRRF SCADA System Licensing $8,000 $4,083 $4,083
3 WRRF Education & Training $8,750
4 WRRF Electric Service $10,000 $90,000
5 Wastewater Admin-Various
Studies
$22,500 $22,500
6 Wastewater Admin-Association
Fees
$12,470 $12,470
7 WRRF-Overtime $13,000
8 WRRF-Regulatory Fee $10,600
9 WRRF-Chemicals $113,175
10 CIP Staffing Resources $99,926 $103,350
Sewer Fund Subtotal $51,750 $126,175 $168,204 $262,258
232 Packet Page 249
Budget at a Glance
Sewer Fund
Capital Improvement Plan
The City of San Luis Obispo Wastewater Division services, maintains, and upgrades a complex
infrastructure including a Water Resource Recovery Facility, 138 miles of sewer lines, eight pump stations,
and 2,000 manholes. Capital expenses are forecast based on infrastructure maintenance and repair
history, individual project budget estimates, regulatory requirements, and projected changes in
community demographics. Maintaining the wastewater system infrastructure, including major equipment
upgrades, ongoing treatment processes, State regulations, changing technology, and planning for long-
term infrastructure upgrade and replacement is essential to providing protective and reliable wastewater
services for the community.
Table C displays the proposed five-year Capital Improvement Plan for the Sewer Fund. The proposed
capital plan includes the beginning of the upgrade of the Water Resource Recovery Facility which is offset
by proceeds from debt financing shown under the revenue tables. The project is needed due to the age
of the facility, the new state and federally mandated requirements for effluent under the City’s National
Pollutant Discharge System Permit, and increased capacity to accommodate General Plan build-out.
The total cost for infrastructure maintenance and improvements is estimated at $65,664,055 in 2019-20
and $45,970,079 in 2020-21.
233 Packet Page 250
Budget at a Glance
Sewer Fund
Debt Service
Sewer Fund Detail and Debt Retirement
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final
Year
2020
2008 Suntrust Loan $675,000 $181,500 2024
2009 State I-Bank Loan - Farm Lift Station $7,240,918 $555,511 2038
2014 US Bank Wastewater Lease Agreement $3,907,341 $617,985 2029
2018 Refunding Bond $312,375 $31,070 2039
Total Sewer Fund Debt $12,135,634 $1,386,066
The Sewer Fund has approval for a $140 million, 30-year loan from the Clean Water State Revolving Fund
(SRF) for the upgrade of the Water Resource Recovery Facility. The loan carries a 1.8% interest rate and
the first annual loan payment of $6,080,400 is anticipated in 2024.
234 Packet Page 251
Budget at a Glance
Sewer Fund
SEWER RATES
For single-family and multi-family residential customers, a winter water use average is the three-month
average of water use during December, January, and February. This is also referred to as a “sewer cap”
and is the basis of the usage portion of the customer’s monthly sewer charges. For non-residential
customers, all “usage” is based on monthly metered water consumption.
Usage
Current Rates1 2019-20 Rates 2020-21 Rates
Single-Family and Multi-Family
Residential
Per Unit Cost (Up to Sewer Cap)2
$7.85 $8.28 $8.69
Non-Residential
Per Unit Cost (for All Water
Consumption)2
$7.85 $8.28 $8.69
Monthly Base Fee
Current Rates1 2019-20 Rates 2020-21 Rates
Single-Family Residential $18.69 $19.72 $20.71
Multi-Family and Non-Residential
By Water Meter Size:
¾ inch or less $18.69 $19.72 $20.71
1-inch meter $31.21 $32.93 $34.58
1.5-inch meter $62.24 $65.66 $68.94
2-inch meter $99.62 $105.10 $110.36
3-inch meter $186.90 $197.18 $207.04
4-inch meter $311.56 $328.70 $345.14
6-inch meter $622.93 $657.19 $690.05
8-inch meter $996.72 $1,051.54 $1,104.12
10-inch meter $1,432.94 $1,511.75 $1,587.34
1.Current rates effective July 1, 2018.
2.One Unit = 748 Gallons
235 Packet Page 252
Operating Budgets
Employee Summary
Employee Summary Sewer
Program 2018-19 2019-20
Environmental Compliance 1.80 1.80
3171-01 - ENVIRON. PROGRAMS MGR 0.80 0.80
4220-01 - ENVIRON. COMPLIANCE INSP. 0.50 0.50
4220-02 - ENVIRON. COMPLIANCE INSP. 0.50 0.50
Utilities Revenue 2.00 2.00
SUPERVISING UTILITY BILLING ASSISTANT 1.00 1.00
UTILITY BILLING ASSISTANT 1.00 1.00
Wastewater Admin/Eng. 5.00 5.00
2575-01 - DEP DIR-UTILITIES/WASTWTR 1.00 1.00
2580-01 - DIRECTOR OF UTILITIES 0.50 0.50
3029-04 - ADMIN ANALYST 0.50 0.50
3175-01 - UTILITIES BUSINESS MGR 0.50 0.50
3380-01 - UTILITIES ENGINEER 0.50 0.50
3400-01 - UTILITIES PROJECTS MGR 0.50 0.50
3405-01 - SAFETY & TECH TRN ENGINEER 0.50 0.50
4530-04 - SUPERVISING ADM ASST 0.50 0.50
4500-06 - ADMINISTRATIVE ASST I 0.50 0.50
Wastewater Collection 7.40 7.40
3420-01 - WASTEWATER COLLECT SUPER 1.00 1.00
4363-01 - CONTROL SYSTEMS TECH 0.20 0.20
4364-01 - CONTROL SYSTEMS ADMIN 0.20 0.20
4771-02 - WASTEWATER COL SY OPR SBP 1.00 1.00
4771-03 - WASTEWATER COL SY OPR SBP 1.00 1.00
4771-04 - WASTEWATER COL SY OPR SBP 1.00 1.00
4771-05 - WASTEWATER COL SY OPR SBP 1.00 1.00
4771-06 - WASTEWATER COL SY OPR SBP 1.00 1.00
4771-08 - WASTEWATER COL SY OPR SBP 1.00 1.00
Water Quality Lab 2.70 2.70
3185-01 - LABORATORY MANAGER 0.90 0.90
4775-02 - LABORATORY ANALYST SBP 0.90 0.90
4775-03 - LABORATORY ANALYST SBP 0.90 0.90
236 Packet Page 253
Operating Budgets
Employee Summary
Program 2018-19 2019-20
Water Resource Recovery 12.80 12.80
3410-01 - WRRF SUPERVISOR 0.90 0.90
4363-01 - CONTROL SYSTEMS TECH 0.25 0.25
4364-01 - CONTROL SYSTEMS ADMIN 0.25 0.25
4685-01 - WRRF CHIEF MAINT TECH 1.00 1.00
4777-01 - WATER RES REC MAINT SBP 1.00 1.00
4777-02 - WATER RES REC MAINT SBP 1.00 1.00
4777-03 - WATER RES REC MAINT SBP 0.90 0.90
4778-01 - WATER RES REC OPERATE SBP 1.00 1.00
4778-02 - WATER RES REC OPERATE SBP 1.00 1.00
4778-03 - WATER RES REC OPERATE SBP 1.00 1.00
4778-04 - WATER RES REC OPERATE SBP 1.00 1.00
4778-05 - WATER RES REC OPERATE SBP 0.50 0.50
4778-06 - WATER RES REC OPERATE SBP 1.00 1.00
4778-07 - WATER RES REC OPERATE SBP 1.00 1.00
4795-01 - WRRF CHIEF OPR 1.00 1.00
Total Employee Count 31.70 31.70
237 Packet Page 254
Operating Budget Utilities
Sewer Fund Wastewater Administration/Engineering
Wastewater Administration/Engineering
Program Description
The Wastewater Administration/Engineering program leads, evaluates, and provides guidance and
direction for effective water resource management for the various wastewater programs. It provides
strategic and long-term planning and engineering for the wastewater and recycled water systems.
Objectives
Monitor sewer enterprise fund financial operations and recommend rates and revenues needed
to support program and service objectives.
Continue implementation and tracking of strategic planning activities.
Continue safety assessments and ensure compliance with safety regulations.
Begin construction of the Water Resource Recovery Facility (WRRF) Project and the Calle Joaquin
Lift Station.
Implement and monitor the Fiscal Health Response Plan for the wastewater fund.
Activities
Administration.
Strategic Planning.
Safety.
Engineering.
Financial Operations.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $866,125 $826,377 $746,238 (11%) $827,561 10%
Contract Services $142,428 $41,210 $63,560 35%5 $64,560 2%
Other Operating Costs $43,593 $33,130 $44,430 25% $44,910 1%
Total Program $1,052,146 $900,717 $854,228 (5%) $937,031 10%
5 Increase in budget to fund new and ongoing regulatory, organizational, and infrastructure studies.
238 Packet Page 255
Operating Budget Utilities
Sewer Fund Wastewater Collection
Wastewater Collection
Program Description
The Wastewater Collection program is responsible for transporting wastewater from its various sources
to the Water Resource Recovery Facility via eight pump stations and 142 miles of gravity sewer mains.
Objectives
Evaluate and optimize the sewer main maintenance and hydro-cleaning program.
Evaluate the operation and maintenance of the sewer lift stations.
Continue to optimize the Infrastructure Renewal Strategy Plan.
Continue to develop and implement program recommendations to reduce inflow/ infiltration,
including inspecting and prioritizing main condition ratings and completing main replacements.
Activities
Sewer main maintenance.
Lift station operation and maintenance.
Inflow and infiltration reduction.
Service requests.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $916,128 $867,915 $879,708 1% $913,954 5%
Contract Services $44,896 $79,047 $79,950 1% $80,042
Other Operating Costs $103,947 $180,600 $169,300 (7%) $167,250 (1%)
Total Program $1,064,971 $1,127,562 $1,128,958 $1,161,246 4%
239 Packet Page 256
Operating Budget Utilities
Sewer Fund Environmental Compliance
Environmental Compliance
Program Description
The Environmental Compliance program is responsible for complying with the non-domestic wastewater
and various stormwater aspects of the Clean Water Act. This involves the coordination, planning,
development, and implementation of programs and services related to stormwater and industrial wastes
discharged from commercial and industrial sources that have the potential to damage the collection
system, inhibit proper treatment at the Water Resource Recovery Facili ty (WRRF), or harm the
environment.
Objectives
Implement all Best Management Practices related to the Municipal Stormwater Permit.
Revise and implement WRRF Industrial Stormwater Plan to reflect changes in General Industrial
Permit.
Implement Wasteload Allocation Attainment Plan for Pathogen Total Maximum Daily Load
(TMDL).
Activities
Establishing local discharge limits.
Sample collection and management.
Inspection and enforcement.
Reporting and recordkeeping.
Stormwater Management Plan
implementation.
Regulations and compliance
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $246,751 $234,982 $228,315 (3%) $242,158 7%
Contract Services $22,602 $23,950 $23,850 $23,850
Other Operating Costs $12,222 $19,500 $18,300 (7%) $18,300
Total Program $281,575 $278,432 $270,465 (3%) $284,308 6%
240 Packet Page 257
Operating Budget Utilities
Sewer Fund Water Resource Recovery
Water Resource Recovery Facility
Program Description
The Water Resource Recovery Facility (WRRF) receives and treats an average of 3 million gallons of
wastewater per day.
Objectives
Assist in construction of the WRRF improvement project to address new permit limits and
projected capacity goals.
Meet increased demand for recycled water.
Participate in community outreach and partnerships.
Continue with succession planning goals in the development of standard operating procedures.
Continue to explore initiatives that address the objectives identified in the City’s Climate Action
Plan.
Activities
Wastewater treatment and biosolids
management.
Safety and emergency response
management.
Water recycling.
Equipment, facility and grounds
maintenance and improvements.
Community outreach and volunteer
intern training.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $1,997,804 $1,753,107 $1,751,898 (7%) $1,806,155 5%
Contract Services $402,201 $461,417 $504,425 (9%)6 $458,125 (10%)
Other Operating Costs $1,230,779 $1,569,700 $1,539,340 (2%) $1,731,065 11%
Total Program $3,630,784 $3,378,224 $3,795,663 10% $3,995,345 6%
6 Increased contract services budget to fund a new annual service warranty and to fund fence repairs at the effluent
structure.
241 Packet Page 258
Operating Budget Utilities
Sewer Funds Utilities Revenue
Utilities Revenue
Program Description
The Utilities Revenue program is responsible for the accurate and timely collection of revenues that
support the City's water and wastewater programs. It provides the customer interface for billing inquiries
and service requests as well as account auditing and data analysis that supports other programs.
Objectives
Provide exceptional, respectful service.
Monitor usage trends and analyze water use data for use in multiple studies and reports.
Monitor contracts for services to ensure compliance, including meter reading contract.
Maintain programs designed to reduce past-due payment and associated service terminations.
Activities
Utility Bill processing, analysis and
auditing.
Contract management.
Intradepartmental coordination for
service requests.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $195,468 $163,627 $184,551 11%7 $194,892 6%
Contract Services $220,333 $235,500 $235,200 $237,300 1%
Other Operating Costs $49,428 $92,600 $67,550 (37%)8 $69,550 3%
Total Program $465,229 $491,727 $487,301 (1%) $501,742 6%
7 Unfunded Liability Costs not calculated correctly in previous year, this is a correction.
8 Reduce costs for postage, due to increase in electronic billing versus paper billing.
242 Packet Page 259
Operating Budget Utilities
Sewer Fund Water Quality Lab
Water Quality Lab
Program Description
The Water Quality Laboratory (WQL) is an Environmental Laboratory Accreditation Program (ELAP) State
Certified Laboratory which performs sampling and/or analyses in support of City services including:
wastewater, recycled water, groundwater, drinking water, San Luis Obispo Creek watershed, protecting
public health and biosolids. The WQL operates under regulations ensuring compliance with Federal, State
and local regulations, ELAP, and National Pollutant Discharge Elimination System (NPDES) permit
guidelines with other directive documents.
Objectives
Continue work related to the NPDES permit, 303d Integrated List for impaired water bodies, Total
Maximum Daily Load pathogen study, and all current and future ELAP standards.
Coordinate and implement any required water quality special studies during and after the WRRF
Upgrade Project.
Continue participating in community outreach programs including the WQL Internship Program.
Activities
Participate in ELAP certification.
Special Projects.
Community Outreach.
Reporting and record keeping.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $618,686 $540,853 $544,974 1% $545,674 2%
Contract Services $89,150 $186,800 $185,700 $188,000 1%
Other Operating Costs $48,425 $65,300 $69,550 6% $69,550 -
Total Program $756,261 $792,953 $800,224 1% $803,224 2%
243 Packet Page 260
Operating Budget Utilities
General Fund Solid Waste Recycling
Solid Waste Recycling
Program Description
The Solid Waste - Recycling program coordinates the planning, development, and implementation of
programs and services related to solid waste, recycling, organic waste, zero waste, and other waste
diversion programs. It is paid for by AB939 funding collected through the solid waste bills. The 2019-2021
Financial Plan marks the beginning of tracking this program separately.
Objectives
Promote reuse and the avoidance of solid waste production.
Increase organics recycling in order to reduce greenhouse gas emissions.
Promote the use of reusable items in order to reduce solid waste generation and embedded
energy costs of material production and transportation.
Partner with the Integrated Waste Management Authority to provide Household Hazardous
Waste, Motor Oil Disposal, School Education, and other community programs.
Ensure adequate and efficient solid waste recycling services are provided to businesses and
residents within the City of San Luis Obispo.
Activities
Solid waste, recycling, organics recycling
and zero waste programs.
Contract compliance.
Rate setting.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $127,031 $139,179 9%
Contract Services $30,500 $24,000 (27%)9
Other Operating Costs $16,010 $15,710 (2%)
Total Program $173,541 $178,889 3%
9 Decrease in budget due to prior containing start up costs for new software platform. Ongoing costs reflected in
2020-21
244 Packet Page 261
Sewer Fund Capital Improvement Plan
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $ 875,303 $2,675,989 $3,977,438 $ 4,559,358 $ 1,405,000 $ 13,493,088
Asset Replacement $64,590,573 $43,099,819 $15,920,563 $456,625 $ - $ 124,067,580
New Asset $ 180,000 $- $- $ - $ - $ 180,000
Grand Total $65,645,876 $45,775,808 $19,898,001 $ 5,015,983 $ 1,405,000 $ 137,740,668
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Fleet Replacement $- $- $ 40,000 $207,500 $180,000 $ 427,500
Sewer 1/2 ton Pickup $- $- $- $35,000 $ - $ 35,000
Sewer Collections Forklift $- $- $ 40,000 $ - $ - $ 40,000
Sewer Hybrid Sedan $- $- $- $35,000 $ - $ 35,000
Sewer Hydrocleaner $- $- $- $120,000 $120,000 $ 240,000
Sewer Portable Pump $- $- $- $ - $60,000 $ 60,000
Utilities Hybrid Sedan $- $- $- $17,500 $ - $ 17,500
Inflow/Infiltration Reduction $ 200,000 $ 200,000 $ 200,000 $200,000 $200,000 $ 1,000,000
Infrastructure Renewal $- $- $- $280,000 $100,000 $ 380,000
IT Replacement $ 50,303 $9,989 $ 11,438 $19,358 $ - $ 91,088
City SAN $- $- $- $ 8,146 $ - $ 8,146
Fire Radio Receive Site at Fire Sta. 4 $- $1,875 $- $ - $ - $ 1,875
Firewall Replacement $ 12,223 $- $- $ - $ - $ 12,223
Network Security Upgrade $9,403 $- $- $ - $ - $ 9,403
Network Switching Infrastructure $5,129 $- $- $ - $ - $ 5,129
Uninterruptible Power Supplies $- $- $3,324 $ - $ - $ 3,324
Virtual Private Network Replace $8,307 $- $- $ - $ - $ 8,307
VMware Infrastructure Upgrade $ 15,241 $8,114 $8,114 $ - $ - $ 31,469
Wireless System Citywide $- $- $- $11,212 $ - $ 11,212
Major Facility Maintenance $- $- $- $ 2,500 $10,000 $ 12,500
879 Morro - Roof $- $- $- $ 2,500 $10,000 $ 12,500
Sewer Manhole Cover Adjustments $ 30,000 $ 25,000 $ 25,000 $25,000 $25,000 $ 130,000
Telemetry Upgrades - Sewer $ 280,000 $- $- $30,000 $ - $ 310,000
HachWims $ 30,000 $- $- $ - $ - $ 30,000
245Packet Page 262
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
iFix Replacement $ 250,000 $- $- $ - $ - $ 250,000
MP2 Replacement $- $- $- $30,000 $ - $ 30,000
Trench Repairs $ 25,000 $ 25,000 $ 25,000 $25,000 $25,000 $ 125,000
Wastewater Collections System
Improvements $ 280,000 $1,326,000 $1,411,000 $ 1,485,000 $275,000 $ 4,777,000
Foothill Sewer - Trench / Pipe Burst $ 170,000 $- $- $ - $ - $ 170,000
Foothill Sewer Siphon $- $- $- $ - $200,000 $ 200,000
Johnson, Buchon Trench / Pipe Burst $- $- $ 135,000 $ 1,485,000 $ - $ 1,620,000
Serrano, Bressi, Trench / Pipe Burst $- $- $- $ - $75,000 $ 75,000
Verde, Luneta, Trench / Pipe Burst $- $ 116,000 $1,276,000 $ - $ - $ 1,392,000
Westmont, Cerro Romaldo Trench /
Pipe Burst $ 110,000 $1,210,000 $- $ - $ - $ 1,320,000
Wastewater Lift Station Rehabilitation $ 180,000 $ 700,000 $2,160,000 $ 2,050,000 $100,000 $ 5,190,000
Airport Lift Station $- $- $1,980,000 $ - $ - $ 1,980,000
Calle Joaquin Lift Station $- $ 700,000 $- $ - $ - $ 700,000
Foothill Lift Station $- $- $ 180,000 $ 1,980,000 $ - $ 2,160,000
Silver City Lift Station $- $- $- $70,000 $100,000 $ 170,000
New Buckley Lift Station $ 180,000 $- $- $ - $ - $ 180,000
Water Meters and Boxes $ 90,000 $ 90,000 $ 90,000 $90,000 $90,000 $ 450,000
WRRF Major Maintenance $ 200,000 $ 300,000 $ 15,000 $175,000 $400,000 $ 1,090,000
Coating Maintenance $- $- $ 15,000 $ - $ - $ 15,000
Digester Cleaning No.1 , 2 and 3 $ 200,000 $ 300,000 $- $ - $ - $ 500,000
Headworks Grit Pump $- $- $- $175,000 $ - $ 175,000
Screenings Washer Auger $- $- $- $ - $350,000 $ 350,000
UV Bulb Replacement $- $- $- $ - $50,000 $ 50,000
WRRF Upgrade $64,310,573 $43,099,819 $15,920,563 $426,625 $ - $123,757,580
Construction $59,459,098 $38,248,344 $11,069,088 $22,335 $ - $108,798,865
Construction Management $3,088,281 $3,088,281 $3,088,281 $257,357 $ - $ 9,522,200
Office Engineering $1,235,313 $1,235,313 $1,235,313 $102,943 $ - $ 3,808,882
Program Management $ 527,881 $ 527,881 $ 527,881 $43,990 $ - $ 1,627,633
Grand Total $65,645,876 $45,775,808 $19,898,001 $ 5,015,983 $ 1,405,000 $137,740,668
246Packet Page 263
PARKING FUND
247 Packet Page 264
Parking - Long-Term Forecasts
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Revenues
Investment and Property Revenues 64,400$ 63,200$ 22,200$ 24,600$ 19,000$
Fines and Forfeitures 631,700$ 647,400$ 647,400$ 647,400$ 647,400$
Service Charges
Service ChargesParking Meter Collections
Service ChargesLots 119,400$ 124,400$ 110,400$ 110,400$ 125,800$
Service ChargesStreets 1,974,100$ 2,289,700$ 2,289,700$ 2,289,700$ 2,605,300$
Service ChargesParking Structure Collections 1,473,600$ 1,768,300$ 1,768,300$ 2,015,800$ 2,397,200$
Service ChargesLong-Term Parking Revenues 890,000$ 1,008,100$ 989,000$ 989,000$ 1,091,100$
Service ChargesLease Revenues 283,100$ 283,100$ 283,100$ 283,100$ 283,100$
Service ChargesParking In-Lieu Fees 20,600$ 20,600$ 20,600$ 20,600$ 20,600$
Service ChargesOther Service Charges (127,300)$ (173,500)$ (173,500)$ (173,500)$ (226,700)$
Total Service Charges 4,633,500$ 5,320,700$ 5,287,600$ 5,535,100$ 6,296,400$
Other Revenues 13,300$ 13,300$ 13,700$ 13,700$ 14,100$
Total Revenues 5,342,900$ 6,044,600$ 5,970,900$ 6,220,800$ 6,976,900$
Expenditures
Operating Programs
Operating Expenses 2,430,209$ 2,484,436$ 2,550,359$ 2,576,693$ 2,600,973$
General Government 537,300$ 548,000$ 600,000$ 630,000$ 661,500$
Total Operating Programs 2,967,509$ 3,032,436$ 3,150,359$ 3,206,693$ 3,262,473$
Capital Improvement Plan Projects 1,552,200$ 30,114,000$ 1,251,700$ 1,286,800$ 1,282,500$
Debt Service 856,800$ 855,500$ 855,300$ 2,314,800$ 2,311,600$
Total Expenditures 5,376,509$ 34,001,936$ 5,257,359$ 6,808,293$ 6,856,573$
Other Sources (Uses)
Operating Transfers In
Operating Transfers Out -$ -$ -$ -$ -$
Proceeds from Debt Financing 20,000,000$ -$ -$ -$
Other:(196,138)$ (167,119)$ (162,599)$ (165,409)$ (168,275)$
Total Other Sources (Uses)(196,138)$ 19,832,881$ (162,599)$ (165,409)$ (168,275)$
Revenues & Other Sources Over (Under)
Expenditures and Other Uses (229,747)$ (8,124,455)$ 550,942$ (752,902)$ (47,948)$
Working Capital, Beginning of Year 12,889,228$ 12,659,481$ 4,535,026$ 5,085,968$ 4,333,066$
Working Capital, End of Year 12,659,481$ 4,535,026$ 5,085,968$ 4,333,066$ 4,285,118$
Reserve (20% Operating)593,502$ 606,487$ 630,072$ 641,339$ 652,495$
CalPERS Down Payment 58,200$ 58,200$ 38,800$ 38,800$
UFL Trust Fund 38,800$ 38,800$ 38,800$ 38,800$ 31,000$
Unreserved Working Capital 12,027,179$ 3,831,538$ 4,358,896$ 3,614,127$ 3,562,823$
Parking Fund Long-Term Forecast
248 Packet Page 265
Budget at a Glance
Parking Fund
The Service of Parking
The City's parking and access management program is designed to provide critical access to parking
facilities throughout the City, as it relates to neighborhood parking districts and the downtown area.
Parking, access and traffic flow are interrelated in our city and parking plays an important role in the
successful operations of our infrastructure. The Parking Division works with several stakeholders including
businesses, residents, Cal Poly, motor vehicle operators and visitors to meet diverse parking and access
needs. The Division promotes services through direct education, engineering, and enforcement efforts
that strive to balance the high demand for access to areas that have high competition for access to limited
space.
2019-21 Financial Plan
Key Assumptions
When preparing the budget, the Parking Division analyzes past financial results, reviews upcoming
operational and capital needs, and current and future debt obligations to assess the financial position of
the fund for its continued health. The budget prepared for the two-year financial plan follows a “zero
based budgeting” approach, considering each line item and its future needs anew. Asset condition,
infrastructure age, and future capacity needs are driving factors in determining the Capital Project plan
and debt financing evaluations.
The needed revenue is then evaluated based on current rates and income levels, analysis of current
parking asset uses, and effects on future revenue potential to provide a rate recommendation and any
needed increases.
Minimum working capital reserve should equal at least 20% of the total Operating Program expenditures
according to the City's fiscal policy and Standard and Poor's rating criteria. Based upon this policy, the
minimum reserve level should be approximately $630,300 for FY 2019-20 and will increase incrementally
until 2022 when the Palm – Nipomo Parking structure opens.
In preparation for the construction of the Palm – Nipomo Parking structure, the Parking Fund has been
building up working capital. This will allow the fund to self-finance approximately $8 million. The working
capital will therefore drop from $12 million to $3.8 million in 2019-20.
Consistent with previously adopted policies, Parking Fund Revenue sources assume a very conservative
annual usage growth rate over the entire projection period. The multi-year rate increases approved by
Council (thru FY 2020-21) are in accordance with the Fund’s periodic rate adjustment plan. The
systemwide rate increases in FY 2020-21 help offset parking resource reductions due to the loss of Lot 14
as well as cost increases for the construction of the Palm Nipomo project. Based upon projections,
additional systematic rate changes will be required in out years of the fund to meet expenditure needs.
249 Packet Page 266
Budget at a Glance
Parking Fund
FUND REVENUES
As an enterprise fund, the Parking Division finances its operation mainly with rates charged for parking
services, property lease income, and one-time incomes such as Parking In-Lieu payments. According to its
mandate, rates must be sufficient to cover operation, capital asset improvements and maintenance, debt
obligations, and appropriate reserve levels to keep the fund healthy and prepared for unforeseen and
future funding needs.
Revenues are collected from multiple sources which include:
1.User Fees, including parking meter,
structure, pass card and parking permits.
2.Fines and forfeitures
3.Parking In-Lieu Fees
4.Property Lease Revenues,
5.Investment and Property Revenue
Revenue Forecast
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2017-18 Actual 2018-19 Budgeted 2019-20 Projected 2020-21 Projected
Parking Revenues
Investment and Property Revenues Fines & Forfeitures Parking Meters - Lots
Parking Meters - Street Parking Structures Long Term Parking
Lease Revenues Parking In-Lieu Fees Other Revenue
Revenues (top 9) 2017-18
Actual
2018-19
Budgeted*
2019-20
Projected Chg 2020-21
Projected Chg
Investment and Property Revenues 87,232 55,000 62,700 14% 61,100 -3%
Fines & Forfeitures 620,665 617,000 631,700 2% 647,400 2%
Parking Meters - Lots 153,667 166,000 119,400 -28%124,400 4%
Parking Meters - Street 1,622,194 1,942,300 1,974,100 2% 2,289,700 16%
Parking Structures 1,484,631 1,473,600 1,473,600 0% 1,768,300 20%
Long Term Parking 863,916 994,600 890,000 -11%1,008,100 13%
Lease Revenues 480,222 505,000 283,100 -44%283,100 0%
Parking In-Lieu Fees 149,215 20,600 20,600 0% 20,600 0%
Other Revenue 7,382 100 13,300 N/A 13,300 N/A
Total Revenues: 5,469,124 5,774,200 5,468,500 6,216,000
250 Packet Page 267
Budget at a Glance
Parking Fund
FUND EXPENDITURES
Operating Programs
The Parking Division’s operating program costs are summarized below. The summary reflects the
operating program budget amounts for the 2019-21 Financial Plan. The two primary operating costs for
the Parking Fund consist of direct operating costs that fund staffing, contract services, other operating
costs as well as retirement contributions. Indirect costs to the Parking Fund consist of reimbursement to
the General Fund for general government services to support parking programs. These amounts are
calculated annually in the City’s Cost Allocation Plan.
Operating Expenses 2017-18
Actual
2018-19
Budgeted
2019-20
Projected
2020-21
Projected
Operating Programs $2,375,980 $2,572,600 $2,546,600 $2,616,900
General Government $622,189 $535,400 $533,000 $626,300
Total Expenses: $2,998,169 $3,108,000 $3,079,600 $3,243,200
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2017-18 Actual 2018-19 Budgeted 2019-20 Projected 2020-21 Projected
Total Operating Expenditures
Operating Programs General Government Total Expenses:
251 Packet Page 268
Budget at a Glance
Parking Fund
Proposed Changes to Operating Programs
There are several proposed program enhancements for the Parking Fund.
•An increase in contract services of $55,000 in FY 2019-20, $35,000 in FY 2020-21 and thereafter
for additional Public Education and Community Engagement for parking and access services to
help improve utilization of parking resources and demand reduction activities. A significant
upgrade to the City webpage and public information portal will be complete in year one.
•An increase of $60,000 per year for additional security services in the structures and lots to
address safety issues during the overnight periods not currently patrolled.
•An increase of $26,000 per year in contract services for additional structure cleaning that will
include “deep” cleaning of the structures to address human waste and other anti-social activities.
This will fund 3-4 deep cleanings per year.
•A one-time only expense of $10,000 in FY 2019-20 to participate in the Transportation
Electrification Plan preparation.
•Funding $21,138 in FY 2019-20 and $22,199 in FY 2020-21 to increase CIP Engineering services to
assist in project delivery.
•Setting aside up to $24,000 if the Downtown PBID is approved for the Parking Fund’s responsible
annual contribution for the program.
Program Enhancements One-Time Ongoing
2019-20 2020-
21
2019-20 2020-21
1 Public Education & Community Engagement $55,000 $35,000
2 Parking Structure and Lot Security Services
Enhancement
$60,000 $60,000
3 Augment Parking Structure Cleaning $26,000 $26,000
4 Transportation Electrification Plan $10,000
5 CIP Engineering Services $21,138 $22,119
6 Downtown PBID $24,000 $24,000
Parking Fund Subtotal $10,000 $0 $186,138 $167,119
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
2017-18 Actual 2018-19
Budgeted
2019-20
Projected
2020-21
Projected
Revenue vs. Expenses
Total Expenses:Total Revenues:
252 Packet Page 269
Budget at a Glance
Parking Fund
Capital Improvement Plan
The City of San Luis Obispo Parking Division maintains a large and diverse infrastructure including:
▪Three public parking structures with 1,177 spaces
▪Marsh Street (520 spaces)
▪919 Palm Street (242 spaces)
▪842 Palm Street (415 spaces)
▪1,147 On Street parking spaces metered for general public use
▪Signs and markings for 10 Residential Parking Permit Districts with over 880 households
and over 1,775 annual permits processed
Capital expenses are forecast based on infrastructure maintenance and repair history, individual project
budget estimates, regulatory requirements, and projected changes in relation to anticipated new
development. The Parking Fund has been setting aside funding each year for the development of the
Palm-Nipomo Parking Structure which will begin construction in 2020.
Capital Improvement Plan Project Expenses 2019-24
Project budget estimates in the capital plan forecast include inflationary adjustments assuming a
moderate increase in material costs over time. The 2019-24 five-year CIP program continues
reinvestments in the City’s parking assets but also begins significant annual funding to begin the
rehabilitation of the three parking structures to extend their useful lives. The City completed a Condition
Assessment and Management Plan (CAMP) of all parking structures in 2018. That plan estimated that up
to $10 million would be necessary in the next 10 years to maintain and enhance the structures at adequate
levels. The proposed CIP budget invest approximately $1,000,000 in both FY 2019-20 and FY 2020-21 begin
the CAMP projects.
The Palm Nipomo parking structure construction cost is estimated at $28.6 million in FY 20-21. A
$8,600,000 contribution from working capital and $20,000,000 proceeds from debt financing or bond
issuance will be used to fund this amount. Final amounts will be determined as the project construction
documents move forward in the City process. These amounts will change based upon revised project
estimates and final ratio of capital outlay versus debt financing amounts.
The forecast does not include capital or ongoing costs associated with the development of a public-private
parking structure east of Santa Rosa on Higuera at Toro. Funding for that project will need additional
consideration and will require additional revenue sources not currently forecast in this fund review.
The following additional projects are proposed in the Plan:
1.Parking Lot Acquisition & Lease - Includes $250,000 set aside per year to accumulate funding for
additional property parking lot acquisition for long term demand needs. This amount will be
available to help secure potential shared parking arrangements if developed.
2.Telemetry Communication Upgrades: Wayfinding Program – Includes $50,000 in FY 2019-20 and
$7,500 thereafter to investigate and install wayfinding technology for parking resources in
253 Packet Page 270
Budget at a Glance
Parking Fund
Downtown and other locations in the City.
3.Parking Meter Replacements of Existing Credit Card Meters – Invests $100,000 in both FY 2019-
20 and FY 20-21 to begin upgrade/replacement of existing meters with credit capable meters that
are now at the end of their useful life.
4.Parking Meter Upgrades to Credit Card capable meters – Invests $157,000 in both FY 2019-20
and FY 20-21 to begin upgrade/replacement of older coin meters with credit card capable meters
that accept other forms of payment.
5.Managed Parking Expansion – Invests $25,000 in both FY 2019-20 and FY 20-21 to fund managed
parking expansion projects including residential permit parking districts, new time restrictions in
areas such as Downtown and other managed programs that may result from the update to the
Parking and Access Management Plan.
6.Small Capital Projects – Invests $50,000 in both FY 2019-20 and FY 20-21 to fund small capital
projects that arise in public lots, streets and the structures. Typically, these projects consist of
small projects such as sign replacements and upgrades, paint modifications and replacement of
various parking assets.
7.Fleet Replacement – does not include replacement of any vehicles in the two years of the
Financial Plan however vehicle replacement may be expedited based upon the Electrification
Masterplan that will be conducted in FY 2019-20.
8.Misc Finance and Information Technology capital projects that have associated Parking Fund
support will occur in the projected years.
S1,552,220
S1,251,660
S1,282,500
S1,286,780
254 Packet Page 271
Budget at a Glance
Parking Fund
Debt Service
Parking Fund Detail and Debt Retirement
Debt Issue - Asset Outstanding
Principal
Annual
Payment
Final Year
FY 2020
2001 State I- Bank Loan - Marsh St. Garage $4,047,180 $417,027 2032
2018 Refunding Bond $4,536,875 $451,259 2039
Total Parking Fund Debt $8,584,055 $868,286
The Parking Fund will construct its four Downtown parking structure in 2020-21. In order to finance the
capital expenditure, the fund will seek a loan for $20 million to be financed over 20 to 30 years.
255 Packet Page 272
Budget at a Glance
Parking Fund
PARKING RATES
The following rates will be effective with the 2019-21 Financial Plan – 2019-20 Budget.
Currently Adopted Parking Rate
Changes
Effective
Jan.1, 2018
Effective July
1, 2019
Proposed
effective July
1, 2020
Parking Meters (hourly):
Tier 1 (Super Core) $ 1.75 $ 2.00
Tier 2 (Core) $ 1.50 $ 1.75
Tier 3 (10-hour meters) $ 1.00 $ 1.25
Tier 3 - 10 Hour Meter Permit $ 60.00 $ 60.001 $ 70.00
Parking Structures
Hourly/Daily Max: $1.25/$12.50 $1.50/$15.00
Monthly/Quarterly: $85/$255 $95/$285
DROP Program (overnight parking for
DT residents only)
$ 125 $ 145
Annual Permits:
Residential Parking Permit $ 15 $ 20
Downtown Residential Permit $ 15 $ 20
OTHER:
Validated Parking (businesses only) –
block of 100 hours
$ 75 $ 90
Parking Fines:
Expired Meter $ 40 TBD
Overtime Parking $ 45 TBD
Passenger Loading Zone $ 40 TBD
Parking Space Markings $ 40 TBD
No Permit Lot $ 45 TBD
Residential District $38 TBD
Parking Meters (hourly) Effective Jan.1,
2018
Effective July 1,
2019
Proposed
effective July 1,
2020
Tier 3 - 10 Hour Meter
Permit
$ 60.00 $ 60.00 $ 70.00
Fines & Forfeiture Current Effective January 1, 2020
Residential District $38 $40
256 Packet Page 273
Operating Budgets
Employee Summary
Employee Summary Parking
Parking Fund 2018-19 2019-20
Parking Operations & Maintenance 10 10
Parking Services Manager 1 1
Parking Services Supervisor 1 1
Parking Meter Repair Worker 1 1
Parking Coordinator 1 1
Parking Enforcement Officer 3 3
Supervising Administrative Assistant 1 1
Administrative Assistants 1 1
257 Packet Page 274
Operating Budget
Parking Fund Parking
Parking Operations and Maintenance
Program Description
The Parking Services program implements the Access and Parking Management Plan and directs the
operation and maintenance of the City’s parking lots, on-street metered spaces, parking structures,
residential permit parking districts and timed parking areas.
Objectives
Promote economic and social vitality in the downtown core.
Implement the Conceptual Physical Plan for the City’s Center.
Provide enough parking in the commercial core for visitors and employees.
Reduce parking demand.
Implement the transportation strategy presented in the General Plan Circulation Element.
Activities
Compliance/Enforcement.
Parking Fund Revenue Management.
Structure Operations.
Parking Management and Demand
Reduction
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $1,464,217 $1,282,889 $1,287,835 $1,342,062 4%
Contract Services $566,903 $693,662 $823,360 19% 1 $823,360 -
Other Operating Costs $344,862 $249,064 $319,014 28% 2 $319,014 -
Total Program $2,375,982 $2,225,616 $2,430,209 $2,484,436 2%
Notes: 1) Includes Update to Parking Access and Management Plan , base contract increase for security services, cleaning and
others, 2) Includes increase for Operating material supplies, Education and Training for new staff and Electrical Costs including
EV Charging Stations.
258 Packet Page 275
Parking Fund Capital Improvement Plan
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $69,717 $53,965 $54,160 $89,279 $85,000 $352,121
Asset Replacement $1,207,500 $1,165,000 $922,500 $922,500 $922,500 $5,140,000
New Asset $275,000 $28,895,000 $275,000 $275,000 $275,000 $29,995,000
Grand Total $1,552,217 $30,113,965 $1,251,660 $1,286,779 $1,282,500 $35,487,121
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
842 Palm Parking Structure Maintenance $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000
871 Marsh Street Structure Maintenance $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000
919 Palm Street Structure Maintenance $100,000 $100,000 $100,000 $100,000 $100,000 $500,000
Fleet Replacement $ - $ - $ - $35,000 $35,000 $70,000
Parking 1/2ton Pickup $ - $ - $ - $35,000 $ - $35,000
Parking Compact Pickup $ - $ - $ - $ - $35,000 $35,000
IT Replacement $19,717 $3,965 $4,160 $4,279 $ - $32,121
City SAN $ - $ - $ - $2,036 $ - $2,036
Fire Radio Receive Site at Fire Station #4 $ - $625 $ - $ - $ - $625
Firewall Replacement $5,033 $ - $ - $ - $ - $5,033
Network Security Upgrade $3,872 $ - $ - $ - $ - $3,872
Network Switching Infrastructure Equipment $1,116 $ - $ - $ - $ - $1,116
Uninterruptible Power Supplies $ - $ - $820 $ - $ - $820
Virtual Private Network Replace $3,420 $ - $ - $ - $ - $3,420
VMware Infrastructure Upgrade $6,276 $3,340 $3,340 $ - $ - $12,956
Wireless System Citywide $ - $ - $ - $2,243 $ - $2,243
Lighting Energy Efficiency Retrofits $ - $ - $ - $ - $ - $ -
842 Palm Street Parking Structure $ - $ - $ - $ - $ - $ -
871 Marsh Street Parking Structure $ - $ - $ - $ - $ - $ -
919 Palm Street Parking Structure $ - $ - $ - $ - $ - $ -
Managed Parking Expansion (meters, Residential
Permit Districts, Mobile Pay) $25,000 $25,000 $25,000 $25,000 $25,000 $125,000
Palm-Nipomo Parking Structure $ - $28,620,000 $ - $ - $ - $28,620,000
259Packet Page 276
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Parking Meter Replacements of Existing Credit
Card Meters $100,000 $100,000 $5,000 $5,000 $5,000 $215,000
Parking Meter Upgrades to Credit Card/Mobile Pay $157,500 $157,500 $10,000 $10,000 $10,000 $345,000
Parking Small Capital Miscellaneous CIP Projects $50,000 $50,000 $50,000 $50,000 $50,000 $250,000
Property Acquisition & Lease $250,000 $250,000 $250,000 $250,000 $250,000 $1,250,000
Telemetry Communications Upgrades-Wayfinding $50,000 $7,500 $7,500 $7,500 $7,500 $80,000
Grand Total $1,552,217 $30,113,965 $1,251,660 $1,286,779 $1,282,500 $35,487,121
260Packet Page 277
TRANSIT FUND
261 Packet Page 278
Transit - Long-Term
Forecasts
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
REVENUES
Federal 1,488,983$ 1,511,318$ 1,533,988$ 1,556,998$ 1,580,353$ 1,604,058$
State 1,803,544$ 1,830,597$ 1,858,056$ 1,885,927$ 1,914,216$ 1,942,929$
Local 822,991$ 845,634$ 868,941$ 892,934$ 917,533$ 943,118$
Total:4,115,518$ 4,187,549$ 4,260,985$ 4,335,859$ 4,412,102$ 4,490,105$
EXPENDITURES
Purchased Transportation 2,683,962$ 2,738,224$ 2,792,617$ 2,847,143$ 2,902,051$ 2,957,227$
Fuel & Maintenance 550,754$ 553,578$ 556,444$ 559,353$ 562,306$ 565,303$
Overhead/Admin 537,909$ 539,747$ 544,996$ 550,389$ 555,889$ 561,499$
Cost Allocation 276,806 282,342 287,989 293,749 299,624 305,616
Total:4,049,431$ 4,113,891$ 4,182,046$ 4,250,634$ 4,319,870$ 4,389,646$
CHANGES IN FINANCIAL POSITION
Beginning Working Capital 2,700,000$ 2,766,087$ 2,839,745$ 2,918,684$ 3,003,909$ 3,096,141$
Revenues Over/Under Expenditures 66,087$ 73,658$ 78,939$ 85,225$ 92,232$ 100,459$
Ending Working Capital 2,766,087$ 2,839,745$ 2,918,684$ 3,003,909$ 3,096,141$ 3,196,600$
Operating Reserve 809,886$ 822,778$ 836,409$ 850,127$ 863,974$ 877,929$
Unfunded Liability 49,050$ 50,520$ 50,521$ 50,522$ 50,523$ 50,524$
Unreserved Working Capital - Year End 1,907,150$ 1,966,447$ 2,031,753$ 2,103,260$ 2,181,644$ 2,268,147$
Transit Fund Long-Term Forecast
262 Packet Page 279
Budget at a Glance
Transit Fund
The Service of Public Transit
SLO Transit is the local fixed-route public transit operation for the City of San Luis Obispo. SLO Transit
operates 14 vehicles at peak period, along eight routes within the 23 square miles of the city limits of San
Luis Obispo and California Polytechnic State University. Services operate 363 days a year. On average, 1
million rides are provided annually. Ridership demographics
reflect a broad cross section of the community, including:
Seniors, the Disabled, Indigent, K-12 Students, University
Students, Commuters and Visitors. Trips are routinely taken to
access educational, medical, employment, commercial and
social opportunities throughout the service area. Transit
services play a vital role, not only as a “safety net” for the
transit-dependent, but also addresses climate change issues
associated with greenhouse gases.
2019-21 Financial Plan
Key Assumptions
When preparing the budget, the Transit Division analyzes past subsidies (federal, state, and contractual
with Cal Poly) and ridership trends to forecast revenues. Transit service based on costs are then matched
to revenue forecasts. Bus replacement schedules are based on federally approved “useful-life” criteria
and best-case scenarios for aging vehicles, however the availability of funds is highly dependent on
discretionary grants from the state or federal government. Without these, bus replacements are often
deferred. The budget prepared for this two-year financial plan follows a “zero based budgeting” approach,
considering each line item and its future needs anew.
263 Packet Page 280
Budget at a Glance
Transit Fund
FUND REVENUES
As an Enterprise Fund, Transit funds its operations within subsidy and fare revenues. Revenues are
projected to sufficiently keep pace with escalating costs. However, any expansion of the transit program
will require additional funding sources.
Federal funding assistance is provided to SLO Transit in the form of Federal Transit Administration (FTA)
5307 grant funds that can be used for transit service operating and capital expenses. These Federal
resources are available to urbanized areas, with a population of 50,000 or more. The SLO Urbanized area
includes populations of Cal Poly and adjacent county areas which reach the 50,000 population criteria.
The federal share for the funding of any one of these activities is not to exceed 50 percent of operating
expenses or 80 percent of capital expenses of the net project cost. They account for approximately 38%
of the total operating budget and are projected to continue to grow proportionately during the next two-
year fiscal cycle and five-year outlook. However, unforeseen changes in federal policy can significantly
affect transit funding projections.
State funding assistance is provided to SLO Transit in the form of the State’s Transportation Development
Act (TDA) funding. TDA is comprised of two sources of funding for transportation programs the first is
Local Transportation Fund (LTF) which is derived from ¼ cent retail sales taxes, the second is State
Transportation Assistance (STA) which is derived from the statewide sales tax on diesel fuel. Both funds
are distributed to the regions by the State. San Luis Obispo Council of Governments (SLOCOG) then
allocates this amount regionwide to each of the seven cities, the County of San Luis Obispo, and the
Consolidated Transportation Services Agency for the San Luis Obispo region. LTF funds are apportioned
according to population numbers, for: public transit, street/road improvements and bikeway/pedestrian
facilities. STA funds are formula-based and used for public transit purposes.
TDA funds, 42% of the total operating budget, are also projected to have a modest increase, most of which
is attributed to the supplement of SB1 funds. And while SB1 will likely “shore up” TDA funds, this funding
source is considered volatile due to the fluctuating nature from which they are derived.
State policy requires that annual farebox revenue equal no less than 20% of the total operating budget.
The 2018-19 Fiscal Year farebox ratio is projected to hover around the 20% requirement. Historically, the
Transit Fund has had year-end operating savings that move the ratio above the 20% minimum.
Local revenue from cash fares, pass sales and Cal Poly uses (an agreement with Cal Poly providing a Transit
pass for students), is 20% of the total Transit Fund operating budget. These sources are expected to see
modest gains; enough to meet the mandated farebox recovery. No fare increases, beyond the currently
scheduled, are anticipated at this time.
Cal Poly plays a considerable role in the generation of local farebox and the overall health of the Transit
Fund. The last four-year agreement expired June 30th, 2016. Staff has been working with Cal Poly
administration to develop a new agreement. The University has requested a one-year extension with a
3% increase over current costs for fiscal year 2019-20. This increase over current costs is consistent with
the language in the existing agreement.
264 Packet Page 281
Budget at a Glance
Transit Fund
Revenue Forecast
Revenues 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Federal $1,488,98
3
$1,511,31
8
$1,533,98
8
$1,556,99
8
$1,580,35
3
$1,604,05
8State $1,803,54
4
$1,830,59
7
$1,858,05
6
$1,885,92
7
$1,914,21
6
$1,942,92
9Local $822,991 $845,634 $868,941 $892,934 $917,533 $943,118
Total Revenue $4,115,51
8
$4,187,54
9
$4,260,98
5
$4,335,85
9
$4,412,10
2
$4,490,10
5
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Transit Revenues
Federal State Local Total Revenues
265 Packet Page 282
Budget at a Glance
Transit Fund
FUND EXPENDITURES
Operating Programs
Expenditures for the Transit program fall into four main categories: Purchased Transportation, Fuel and
Maintenance, Overhead and Administration, and Cost Allocation.
Purchased Transportation. As a cost saving measure, the City contracts the operations and maintenance
of the transit program to a third-party vendor. The contract is awarded through a competitive request
for proposal process (RFP). The contract is awarded to the proposer deemed as “best in value” and is
known as Purchased Transportation (costs). The current contract has been awarded to First Transit Inc.
and will expire in 2020. However, there are provisions for up to three one-year extensions. Purchased
Transportation constitutes 64.3% of the total transit budget.
Purchased Transportation costs are projected to grow by approximately 3% each year. This growth rate
is accounted for in the current revenue assumptions. However, since the city pays the contractor a
variable rate based on the amount of transit hours provide to the public, any expansion of the transit
program in the form of hours will need an additional funding source.
Fuel and Maintenance costs continue to escalate and constitute roughly 13.2%. Many of the current
diesel fleet are approaching the end of their FTA defined “useful-life.” The aging fleet therefore requires
more maintenance and upkeep. Fuel costs have also seen a recent return to high prices. While the
program generally accounts for fluctuations in fuel prices, any further and excessively prolonged fuel costs
may have negative impacts on the transit budget.
Overhead and Administration is the programs third biggest costs, roughly 12.8% and accounts for the
salary and benefits of the three fulltime transit employees, production and print of transit materials and
guides, non-Purchased Transportation related contracts with various vendors, technology procurements
and/or service agreements, auditing and accounting services, advertisement and public engagement
programs, association fees, training and office supplies and other program related materials. These costs
have been maintained relatively flat.
Fiscal Health Response Plan. The Transit program is responsible for its share in addressing the pension
liability shortfall. However, given the size the of the dedicated transit staff, the costs can be absorbed
within the current overhead and administration operating budget with no effects to the current level of
service.
General Government is a method for calculating the support and expenses incurred, for time dedicated
to managing Transit related projects by other non-transit related City Departments. The Cost Allocation
Plan, which also affects the performance of farebox ratio, is considered a Central Service Cost Allocation
plan by the Federal Transit Administration.
266 Packet Page 283
Budget at a Glance
Transit Fund
Expenditures Forecast
Expenses 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Purchased
Transportation
$2,683,96
2
$2,738,22
4
$2,792,61
7
$2,847,14
3
$2,902,05
1
$2,957,22
7Fuel & Maintenance $550,754 $553,578 $556,444 $559,353 $562,306 $565,303
Overhead/Administrati
on
$537,909 $539,747 $544,996 $550,389 $555,889 $561,499
General Government $276,806 $282,342 $287,989 $293,749 $299,624 $305,616
Total Revenue $4,049,43
1
$4,113,89
1
$4,182,04
6
$4,250,63
4
$4,319,87
0
$4,389,64
5
0
1000000
2000000
3000000
4000000
5000000
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Transit Expenditures
Purchased Transportation Fuel & Maintenance
Overhead/Admin Cost Allocation
Total Expenditures
$3,800,000
$4,000,000
$4,200,000
$4,400,000
$4,600,000
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Revenues vs Expenditures
Revenues Expenditures
267 Packet Page 284
Budget at a Glance
Transit Fund
Capital Improvement Plan
The City of San Luis Obispo Transit Division maintains several capital assets
1.17 Revenue Vehicles and 2 Support Vehicles
2.Operations & Maintenance Facility
3.Bus wash system
4.Transit Center with Sawtooth bays and four deluxe shelters
5.165 bus stops
Capital needs are based on federally approved “useful-life” criterion and best-case scenarios for replacing
aging equipment.
Capital Improvement Plan Project Expenses 2019-24
Capital projects continue to be a challenge for the Transit Fund which is completely reliant on scarce and
competitive discretionary grants. Thus, the forecasted expenditures do not take into account proposed
CIP expenditures.
Capital assistance grants, such as: Low Carbon Transit Operations Program (LCTOP), Senate Bill 1 (SB-1)
State of Good Repair (SGR), and the remaining amount of Prop 1B and Public Transportation
Modernization, Improvement, and Service Enhancement Account Program (PTMISEA) (both now
discontinued) are helping in deliver on some minor, and yet important, capital projects for the Transit
program. However larger projects, such as fleet replacement and expansion do not have an identified
funding source beyond Working Capital reserves. As mentioned previously, Capital needs are based on
federally approved “useful-life” criterion and best-case scenarios for replacing aging equipment. The
biggest capital expense for the program by far is replacing aging vehicles. No less than ten vehicles be at
the end of their useful lives in the next five years and Working Capital is insufficient to fund the cost of
replacement.
268 Packet Page 285
Operating Budgets
Employee Summary
Employee Summary – Transit Fund
Transit Fund 2018-19 2019-20
Transit Operation 3 3
Transit Manager 1 1
Transit Assistant 1 1
Transit Coordinator 1 1
269 Packet Page 286
Operating Budget
Transit Fund Transit
Transit Operations and Maintenance
Program Description
The Transit Program provides local fixed-route public transit operations within the 23 square
miles of the City and adjacent Cal Poly University.
Objectives
Quality transportation for transit
dependent people.
Convenient transportation for all
residents.
An attractive alternative to driving
which can reduce traffic congestion
and air pollution.
Activities
Administration.
Vehicle Operations and
Maintenance.
Non-Vehicle Maintenance.
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $341,332 $340,243 $342,360 - $355,979 4%
Contract Services $2,650,579 $2,699,983 $3,135,6621 16% $3,189,924 2%
Other Operating Costs $301,143 $458,700 $364,8003 (20%) $364,800 -
Total Program $3,293,054 $3,498,926 $3,842,822 10% $3,910,703 2%
1 Increase due mainly to reallocation of funding from Other Operating Cost to Contract Services. Overall increase
comes from Contractual agreement with First Transit.
270 Packet Page 287
Transit Fund Capital Improvement Plan
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $5,915 $4,455 $1,201 $ 3,157 $ - $ 14,728
Grand Total $5,915 $4,455 $1,201 $ 3,157 $ - $ 14,728
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 5 Year Total
IT Replacement $5,915 $4,455 $1,201 $ 3,157 $ - $ 14,728
City SAN $- $- $- $ 2,036 $ - $ 2,036
Fire Radio Receive Site at Fire Station #4 $- $3,500 $- $ - $ - $ 3,500
Firewall Replacement $1,438 $- $- $ - $ - $ 1,438
Network Security Upgrade $1,106 $- $- $ - $ - $ 1,106
Network Switching Infrastructure Equipment $ 601 $- $- $ - $ - $601
Uninterruptible Power Supplies $- $- $ 246 $ - $ - $246
Virtual Private Network Replace $ 977 $- $- $ - $ - $977
VMware Infrastructure Upgrade $1,793 $ 955 $ 955 $ - $ - $ 3,703
Wireless System Citywide $- $- $- $ 1,121 $ - $ 1,121
Solar Installations $- $- $- $ - $ - $-
Bus Yard $- $- $- $ - $ - $-
Grand Total $5,915 $4,455 $1,201 $ 3,157 $ - $ 14,728
271Packet Page 288
SPECIAL REVENUE / FIDUCIARY FUNDS
272 Packet Page 289
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blank.
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Operating Budget
Downtown SLO Downtown SLO Assessment
Downtown SLO BID
Program Description
The Downtown Business Improvement District (DBID) was established in 1975 as a parking and
promotions district for the downtown area. As a special fee district, fees are collected from business
license holders operating within a designated area and revenue supports the operations of Downtown
SLO. The City and Downtown SLO (DSLO) agreed by contract that DSLO would provide various services for
the economic, social, cultural, and environmental vitality and beautification of downtown San Luis Obispo.
The assessment is a special revenue and is administered in its separate and distinct fund.
Objectives
Support the Downtown Vitality Major City Goal
Activities
Special Events. Integral to DSLO’s
services is the provision of special events
to the downtown. Those events include:
1. Holiday Activities such as the Annual
Downtown Holiday Parade, Santa’s
House and the Classic Carousel in
Mission Plaza
2. Concerts in the Plaza
3. Thursday Night Promotions including
the Farmers’ Market
Services such as: parking &
transportation; events in Mission Plaza;
downtown maintenance &
beautification; economic development;
and sustaining DSLO as an organization.
273 Packet Page 291
Operating Budget
Downtown SLO Downtown SLO Assessment
Revenue
The Downtown Business Improvement District assessment is collected annually with the Business Tax
renewal as it is based on the gross receipts of businesses located within the geographical boundary of the
Downtown District.
Revenue
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Assessment Revenue $260,488 $227,000 $260,4001 15% $260,400 -
Program Operating Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing
Contract Services $332,320 $227,000 $260,4001 15% $260,400 -
Other Operating Costs - - - - - -
Total Program $332,320 $227,000 $260,400 15% $260,400 -
1 Increase based upon projected revenue form DBID assessment
274 Packet Page 292
Operating Budget
TBID Fund Tourism & BID Promotion
Tourism & BID Promotion
Program Description
The City established a Tourism Business Improvement District (TBID) as requested by the local lodging
industry in 2008. The district levies an assessment on all lodging properties for the purpose of tourism
promotion for the benefit of the district’s constituents. The assessment is a special revenue and is
administered in its separate and distinct fund.
Objectives
Continue the diverse marketing efforts to promote overnight stays in San Luis Obispo.
Actively participate in local, regional and state Visit SLO CAL, Central Coast Tourism Council,
Downtown SLO and other tourism organizations.
Activities
Tourism marketing efforts.
Promote and sponsor events that attract
visitors from outside the County.
Coordination with strategic local,
regional and statewide tourism
partnerships.
Participation in tourism tradeshows and
industry conferences.
Development, management, and
implementation of the City’s TBID
Strategic Plan.
275 Packet Page 293
Operating Budget
TBID Fund Tourism & BID Promotion
Revenue
The TBID assessment levied was set at 2% of the lodging industry’s gross receipts. For this Financial Plan
the following collection is anticipated:
Revenue
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Assessment Revenue $1,498,939 $1.495,075 $1,606,000 7% $1,626,600 1%
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Staffing $167,725 $196,382 $203,800 4% 217,481 5%
Contract Services $1,267,307 $1,107,700 $1,265,0001 14% $1,270,000 -
Other Operating Costs $41,817 $52,000 $64,7868 25% $64,998 -
Total Program $1,476,849 $1,356,082 $1,533,586 13% $1,552,479 1%
1 Additional funding for increased tourism promotion and events funded through the TBID assessment
276 Packet Page 294
Operating Budget
Boysen Ranch Conservation Fund Boysen Ranch
Boysen Ranch
Program Description
Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill Boulevard,
and O’Connor Way. In 2005, the City accepted and currently holds a series of conservation easements
that protect approximately 25 acres at the Boysen Ranch to mitigate for impacts to wetlands and waters
by the Home Depot, Costco, and other Irish Hills Plaza development projects on Los Osos Valley Road.
Boysen Ranch is part of the City’s designated greenbelt. The funding was set up as an endowment to fund
monitoring and maintenance of the restored wetland area.
Objectives
Continue to monitor and maintain the approximately 25 acres of conservation easement area as
part of the City’s greenbelt.
Continue to monitor and maintain the wetland restoration areas.
Activities
Monitor the property to ensure adherence to conservation easement terms and successful
recruitment of wetland functions and values.
Revenue
The Boysen Ranch Conservation Fund projects to earn $2,000 annually in investment and property
revenues.
277 Packet Page 295
Operating Budget
Boysen Ranch Conservation Fund Boysen Ranch
Revenue
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Investment and Property
revenues
$1,599 $2,000 $2,000 - $2,000 -
Program Budget
Actual Budget 2019-21 Financial Plan
2017-18 2018-19 2019-20 Change 2020-21 Change
Total Program $250 $7,500 $7,500 - $7,500 -
278 Packet Page 296
CAPITAL IMPROVEMENT PLAN
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blank.
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CAPITAL IMPROVEMENT PLAN
INTRODUCTION
Capital Improvement Plan
INTRODUCTION
The Capital Improvement Plan (CIP) enables the City to plan, schedule, and finance capital projects to
ensure cost effectiveness and conformance with established plans and policies. The City’s budget process
guides the capital priorities through community input, Council goal setting, Local Revenue Measure
priorities, and the biennially adopted Major City Goal work programs.
The City’s CIP includes all planned infrastructure projects over the next five years. The first two years
identify those projects that are planned to be funded and/or completed during this time period. The latter
three years serve as the framework for future Financial Plans’ capital budgets. The plan represents a
phased approach to funding the projects needed to maintain the City’s infrastructure and major facilities
over the entire five-year period. The plan also identifies equipment replacement needs in the area of fleet
and information technology infrastructure.
Capital asset maintenance and replacement represent one of the fundamental functions of local
government. Many capital projects extend the life of existing City assets like streets, parks, bridges, water
and sewer pipelines, and plants. Other projects replace aging facilities and equipment. Finally, some
projects, representing community desires and Council priorities, are new projects intended to enhance
the overall quality of life of residents and visitors.
All the City's construction projects and equipment purchases of $25,000 or more are included in the
Capital Improvement Plan. Minor capital outlays costing less than $25,000 are included with the Financial
Plan operating program budgets.
PROJECT EVALUATION AND SELECTION
In preparing the recommended CIP for 2019-21 an internal review team considered the following
evaluation factors to set priorities:
1. Is it mandated by the state or federal government?
2. Is there significant outside funding for the project?
3. Is it necessary to address an immediate public health or safety concern that cannot be deferred?
4. Is it necessary to adequately maintain existing facilities, infrastructure or equipment?
5. Does it implement a high priority Council goal for 2019-21?
6. Will it result in significant operating savings in the future that makes a compelling case for making this
investment solely on a financial basis?
KEY ROLE OF THE LOCAL REVENUE MEASURE
The City’s voter approved Local Revenue Measure, also referred to as Measure G, is projected to generate
about $7.8 million in 2019-20 and $7.9 million 2020-21 in revenues for the City. 70% of the Measure is
used to support Capital Improvement Plan projects according to the voters’ priorities. Additionally,
280 Packet Page 299
CAPITAL IMPROVEMENT PLAN
INTRODUCTION
projects funded are closely aligned with the City Council’s Major City Goals of 1) Housing, 2) Sustainable
Transportation, 3) Climate Action, 4) Downtown Vitality, and 5) Fiscal Sustainability and Responsibility.
BUDGET AND FISCAL POLICIES FOR THE CIP
Formally articulated budget and fiscal policies provide the fundamental framework and foundation for
preparing and implementing the City’s Financial Plan and the Capital Improvement Plan. For ease of
reference, policies pertaining to Capital Improvement Plan Project Management are listed here.
Capital Improvement Plan Project Management Policies
A. CIP Project Amount: Construction projects and equipment purchases that cost $25,000 or more will be
included in the CIP. Minor capital outlays of less than $25,000 will be included with the operating program
budgets.
B. CIP Purpose: The purpose of the CIP is to systematically plan, schedule, and finance capital projects to
ensure cost-effectiveness in conformance with established policies. The CIP is a five-year plan organized
into the same functional groupings used for the operating programs. The CIP reflects a balance between
capital replacement projects that repair, replace or enhance existing facilities, equipment or
infrastructure; and capital facility projects that expand or add to the City’s existing fixed assets.
C. Project Manager. Every CIP project will have a project manager who will prepare the project proposal,
ensure that required phases are completed on schedule, authorize all project expenditures, ensure that
all regulations and laws are observed, and periodically report project status.
D. CIP Review Committee. Headed by the City Manager or his/her designee (currently the Public Works
Director), this Committee will review project proposals, determine project phasing, recommend project
managers, review and evaluate the draft CIP budget document, and report CIP project progress on an
ongoing basis.
E. CIP Phases. Each CIP proposal emphasizes project planning, with projects progressing through one or
more of the following phases depending on the project type and scope:
F. CIP Appropriation. The City’s annual CIP appropriation for study, design, acquisition and/or
construction is based on the projects designated by the Council through adoption of the Financial Plan.
Adoption of the Financial Plan CIP appropriation does not automatically authorize spending for specific
projects. This spending approval generally occurs only after the preceding project phase has been
completed and approved by the Council. Accordingly, expenditure approvals are generally made when
the City authorizes the release of the project specifications for bidding. In that action the Council
authorizes a contract to be entered into if the project costs are within the budgeted amount.
Fund
Appropration Project Study Design Environmental
Review
Property
Acquisition
Site
Preparation
Equipment
Acquisition
Contruction &
Construction
Management
281 Packet Page 300
CAPITAL IMPROVEMENT PLAN
INTRODUCTION
G. CIP Budget Carryover. Appropriations for CIP projects lapse three years after budget adoption if
spending approval has not been obtained (see CIP Appropriation). Project accounts, which have received
spending approval, will not lapse until completion of the approved project phase.
H. Public Art. CIP projects are evaluated during the budget process for conformance with the City's Public
Art policy, which generally requires that 1% of eligible project construction costs be set aside for public
art. Excluded from this requirement are underground projects and utility infrastructure projects. It is
generally preferred that public art be incorporated directly into the project. In the case this is not practical,
an in-lieu contribution to public art will be made. To ensure that funds are adequately budgeted for this
purpose regardless of whether public art will be directly incorporated into the project, funds for public art
will be identified separately in the CIP1.
J. General Plan Consistency Review. The Planning Commission will review the Preliminary CIP for
consistency with the General Plan and provide its findings to the Council prior to plan adoption.
CIP FINANCIAL REPORTING AND FUNDING
CIP Budget and Financial Reporting
It is the City’s policy to prepare financial statements in accordance with generally accepted accounting
principles (GAAP). The City prepares its budget for each fund in accordance with its respective basis of
accounting. This includes the CIP.
CIP Revenues
It is the City’s policy to discourage earmarking general-purpose revenues, whether in the General Fund or
Enterprise Funds. For this reason, there are no “dedicated” revenues for CIP purposes, except in limited
circumstances where revenues are legally restricted for capital projects. This includes:
1. Development Impact Fees. It is the City’s policy that new development should pay its fair share of the
cost of constructing the community facilities needed to serve it unless otherwise determined to be
an overall public benefit. For this reason, the City has established development impact fees for water,
sewer, and transportation improvements under the stringent requirements set by the State under
Assembly Bill 1600 (California Government Code Section 66000 et. seq.)
2. In-Lieu Fees. The City has adopted parking, parkland dedication, and “inclusionary moderate and low-
income housing” requirements. In some cases, developers may pay in-lieu fees instead of providing
that asset (parking, parkland, or affordable housing).
3. Grants. Projects may be funded from grant programs where the use is restricted for CIP purposes by
an outside agency. In preparing the CIP, the City reflects grant funding from the various sources that
are available to fund eligible projects. While the CIP program includes these grant-funded projects,
none are appropriated until the grant award is confirmed by city staff.
4. Donations. Very rarely the City may receive donations; but in these cases, they are generally
earmarked by the donor for a specific project.
1 CIP Projects Public Art Fair Share Contribution for fiscal years 2019-21 is shown in fiscal year 2021-22 in the
amount of $150,000.
282 Packet Page 301
FUND OVERVIEW
Resources for the Capital Improvement Plan (CIP) come from:
• General Fund that includes funds provide by the Road Maintenance and Rehabilitation Act (SB1),
Local Revenue Measure, Bonds or Infrastructure Loans, and the Infrastructure Investment Fund.
• Outside Agency Funding that includes funding provided by the County, State or Federal Grants as
well as Private Developers.
• Enterprise Funds that include Water, Sewer, Whale Rock, Parking, and Transit Funds.
The table below shows the Capital appropriations that are programmed into the 2019-21 CIP by Fund.
Appropriation
by Fund
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Fleet
Replacement
Fund
$77,905 $222,132 $646,000 $585,500 $550,000 $2,081,537
General CIP
Grant Fund
$2,975,000 $16,505,260 $1,000,000 $100,000 $100,000 $20,680,260
General
Purpose CIP
$805,000 $11,595,000 $895,000 $42,450,000 $10,815,000 $66,560,000
Information
Technology
$287,553 $289,050 $481,473 $510,777 $520,864 $2,089,717
Infrastructure
Investment
Fund
$1,900,000 $119,100 $330,550 $330,550 $330,550 $3,010,750
Local Revenue
Measure
$5,574,867 $5,545,397 $4,356,951 $3,960,234 $3,637,540 $23,074,989
Major Facility
Replacement
$125,290 $149,000 $507,000 $475,200 $527,000 $1,783,490
Parking Fund $1,552,217 $30,113,965 $1,251,660 $1,286,779 $1,282,500 $35,487,121
Parkland
Development
$- $965,000 $3,075,026 $400,000 $5,445,714 $9,885,740
Public Art
Fund
$15,000 $15,000 $15,000 $15,000 $15,000 $75,000
Sewer Fund $65,645,876 $45,775,808 $19,898,001 $5,015,983 $1,405,000 $137,740,668
Transit Fund $5,915 $4,455 $1,201 $3,157 $- $14,728
Transportation
Impact Fee
$4,220,000 $12,154,740 $394,000 $507,000 $367,000 $17,642,740
Water Fund $10,223,935 $11,787,875 $3,744,378 $8,707,253 $9,436,000 $43,899,441
Whale Rock
Fund
$99,051 $336,716 $157,358 $21,121 $162,500 $776,746
SB1 $818,000 $1,325,000 $1,405,000 $1,470,000 $1,535,000 $6,553,000
Grand Total $94,325,609 $136,903,498 $38,158,598 $65,838,554 $36,129,668 $371,355,927
283 Packet Page 302
The table below shows the planned Capital expenditures that are programmed into the 2019-21 CIP by
Fund. The planned expenditures of the Capital plan are less than the requested appropriations allowing
for funding accumulation in both the Infrastructure Investment Fund and the Fleet Replacement Fund.
Planned
Expenditures
by Fund
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Fleet
Replacement
Fund
$- $- $646,000 $585,500 $550,000 $1,781,500
General CIP
Grant Fund $2,975,000 $16,505,260 $1,000,000 $100,000 $100,000 $20,680,260
General
Purpose CIP $805,000 $11,595,000 $895,000 $42,450,000 $10,815,000 $66,560,000
Information
Technology $287,553 $289,050 $481,473 $510,777 $520,864 $2,089,717
Infrastructure
Investment
Fund
$1,187,750 $1,259,100 $388,000 $330,000 $- $3,164,850
Local Revenue
Measure $5,574,867 $5,545,397 $4,356,951 $3,960,234 $3,637,540 $23,074,989
Major Facility
Replacement $125,290 $149,000 $507,000 $475,200 $527,000 $1,783,490
Parking Fund $1,552,217 $30,113,965 $1,251,660 $1,286,779 $1,282,500 $35,487,121
Parkland
Development $- $965,000 $3,075,026 $400,000 $5,445,714 $9,885,740
Public Art
Fund $15,000 $15,000 $15,000 $15,000 $15,000 $75,000
Sewer Fund $65,645,876 $45,775,808 $19,898,001 $5,015,983 $1,405,000
$137,740,668
Transit Fund $5,915 $4,455 $1,201 $3,157 $- $14,728
Transportation
Impact Fee $4,220,000 $12,154,740 $394,000 $507,000 $367,000 $17,642,740
Water Fund $10,223,935 $11,787,875 $3,744,378 $8,707,253 $9,436,000 $43,899,441
Whale Rock
Fund $99,051 $336,716 $157,358 $21,121 $162,500 $776,746
SB1 $818,000 $1,325,000 $1,405,000 $1,470,000 $1,535,000 $6,553,000
Grand Total $93,535,454 $137,821,366 $38,216,048 $65,838,004 $35,799,118 $371,209,990
284 Packet Page 303
Planned Expenditures by Fund
Bonds, Infrastructure Loan
14%
Developer Contribution
3%
Fleet Replacement
Fund
0%
General Capital
Outlay
1%
Infrastructure
Investment Fund
1%
Local Revenue
Measure
6%
Parking Fund
10%
Parkland
Development
3%Sewer Fund
38%
State or Federal Grant
6%
Transportation
Impact Fee
5%
Water Fund
12%
285 Packet Page 304
General Fund
Fund Source Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $5,355,710 $5,211,547 $6,676,424 $6,851,711 $7,985,404 $32,437,796
General Capital Outlay $412,843 $438,050 $1,929,473 $3,021,477 $3,412,864 $9,214,707
SB1 $568,000 $525,000 $1,405,000 $1,470,000 $1,535,000 $5,860,000
Local Revenue Measure $4,374,867 $4,248,497 $3,341,951 $2,360,234 $3,037,540 $17,363,089
Asset Replacement $1,575,000 $1,441,000 $1,305,000 $42,400,000 $9,400,000 $56,121,000
Bonds, Infrastructure Loan $ - $ - $ - $41,000,000 $9,000,000 $50,000,000
General Capital Outlay $500,000 $ - $490,000 $ - $ - $990,000
Infrastructure Investment Fund $75,000 $559,100 $ - $ - $ - $634,100
Local Revenue Measure $1,000,000 $881,900 $815,000 $1,400,000 $400,000 $4,496,900
New Asset $1,567,750 $1,960,000 $698,000 $530,000 $200,000 $4,955,750
General Capital Outlay $5,000 $45,000 $110,000 $ - $ - $160,000
Infrastructure Investment Fund $1,112,750 $700,000 $388,000 $330,000 $ - $2,530,750
SB1 $250,000 $800,000 $ - $ - $ - $1,050,000
Local Revenue Measure $200,000 $415,000 $200,000 $200,000 $200,000 $1,215,000
Grand Total $8,498,460 $8,612,547 $8,679,424 $49,781,711 $17,585,404 $93,514,546
286Packet Page 305
Project Details
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 5 Year Total
Active Transportation Plan $ 100,000 $- $- $ - $ - $ 100,000
Air Compressor Replacement $- $ 80,000 $- $ - $ - $ 80,000
Anholm Neighborhood Greenway Plan Implementation $ 250,000 $ 800,000 $- $ - $ - $ 1,050,000
Bicycle Facility Improvements $ 100,000 $ 100,000 $ 100,000 $100,000 $100,000 $ 500,000
Bridge Maintenance $- $ 100,000 $ 100,000 $75,000 $75,000 $ 350,000
Community Safety Emergency Response
Communication Equipment $ 380,000 $ 250,000 $- $ - $ - $ 630,000
KVEC Tower $- $ 250,000 $- $ - $ - $ 250,000
South Hill Radio Tower $ 380,000 $- $- $ - $ - $ 380,000
Council Hearing Room TI $ 100,000 $- $- $ - $ - $ 100,000
Development Agreement $ 832,750 $ 700,000 $ 370,000 $250,000 $ - $ 2,152,750
Avila Ranch - Buckley Extension Class I $- $ 200,000 $ 120,000 $ - $ - $ 320,000
Avila Ranch - South Higuera Sidewalk $ 112,750 $- $- $ - $ - $ 112,750
Avila Ranch - Vachell Class 2 Lanes $ 260,000 $- $- $ - $ - $ 260,000
SL Ranch - Bob Jones (Calle Joaquin to Froom) $- $ 500,000 $ 250,000 $ - $ - $ 750,000
SL Ranch - LOVR IC $- $- $- $250,000 $ - $ 250,000
SL Ranch - Madonna & Oceanaire Intersection $ 120,000 $- $- $ - $ - $ 120,000
SL Ranch - Madonna Class I $ 340,000 $- $- $ - $ - $ 340,000
Downtown Renewal $ 400,000 $ 640,000 $- $ - $ - $ 1,040,000
858 Higuera Street $ 190,000 $- $- $ - $ - $ 190,000
Broad Street - West Side - Higuera to Marsh $ 210,000 $ 640,000 $- $ - $ - $ 850,000
Electric Vehicle Charging Station at City Hall Parking Lot $5,000 $ 45,000 $- $ - $ - $ 50,000
Fleet Replacement $ 515,000 $ 380,000 $ 696,000 $705,500 $670,000 $ 2,966,500
Building & Safety SUV $- $- $- $70,000 $ - $ 70,000
Engineering Compact Pickup $- $- $- $35,000 $ - $ 35,000
Facilities Maintenance 3/4 ton Pickup $- $- $- $45,000 $35,000 $ 80,000
Facilities Maintenance 3/4 ton Pickup with Utility Bed $- $- $- $45,000 $ - $ 45,000
Fire 1/2 ton Truck $- $- $ 65,000 $ - $50,000 $ 115,000
Fire Compact Truck $- $- $- $50,000 $ - $ 50,000 287Packet Page 306
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 5 Year Total
Fire Heavy Duty Truck $- $- $- $120,000 $120,000 $ 240,000
Fire Medium Duty Truck with Utility Bed $- $- $ 110,000 $ - $150,000 $ 260,000
Fleet Maintenance Stationary Generator $- $- $ 100,000 $ - $ - $ 100,000
Golf Course Mower $- $- $ 65,000 $ - $ - $ 65,000
Park Maintenance Mower $- $- $ 75,000 $ - $ - $ 75,000
Park Maintenance Tractor $- $- $ 75,000 $ - $ - $ 75,000
Parks and Recreation Minivan $- $- $- $48,000 $ - $ 48,000
Parks Maintenance 3/4 ton Pickup $- $- $- $35,000 $ - $ 35,000
Parks Maintenance ATV for Field Prep $- $- $ 30,000 $ - $ - $ 30,000
Parks Maintenance Trailer $- $- $- $ 7,500 $ - $ 7,500
Police Patrol SUV (6 Vehicles Total) $ 130,000 $- $ 126,000 $130,000 $ - $ 386,000
Police Patrol SUV (3 Vehicles Total) $- $- $- $ - $195,000 $ 195,000
Police Patrol SUV (4 Vehicles Total) $- $ 260,000 $- $ - $ - $ 260,000
Police Patrol Truck $ 75,000 $- $- $ - $ - $ 75,000
Police SNAP SUV Hybrid $ 55,000 $- $- $ - $ - $ 55,000
Stormwater Hydrocleaner $- $ 120,000 $ 50,000 $120,000 $120,000 $ 410,000
Streets Maintenance Medium Duty Truck $ 135,000 $- $- $ - $ - $ 135,000
Streets Maintenance Medium Duty Truck $ 120,000 $- $- $ - $ - $ 120,000
IT Replacement $ 884,703 $ 904,250 $ 502,473 $510,777 $520,864 $ 3,323,067
911 Phone System $- $ 20,000 $- $ - $ - $ 20,000
Access Control (Automatic Gate Card System) $- $ 125,000 $- $ - $ - $ 125,000
Audio Recording System Replacement $- $ 10,000 $- $ - $ - $ 10,000
Body Worn Cameras and Video Storage $- $- $- $ - $396,000 $ 396,000
City SAN $- $- $- $178,136 $ - $ 178,136
ECC Equipment Replacement $ 35,000 $- $- $ - $ - $ 35,000
Fire Radio Receive Site at Fire Station #4 $- $ 89,000 $- $ - $ - $ 89,000
Firewall Replacement $ 154,863 $- $- $ - $ - $ 154,863
Network Security Upgrade $ 100,664 $- $- $ - $ - $ 100,664
Network Switching Infrastructure Equipment $ 90,000 $- $- $ - $ - $ 90,000
PD SAN $- $- $- $145,000 $ - $ 145,000 288Packet Page 307
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 5 Year Total
Police CAD Hardware (Servers and Storage) $- $- $ 233,000 $117,000 $ - $ 350,000
Public Safety MDC and In-Car Video Replacement $ 80,000 $ 500,000 $- $ - $ - $ 580,000
Radio Handhelds & Mobiles $ 143,123 $- $ 116,758 $ - $69,364 $ 329,245
Security Video System Replacement $- $- $- $ - $55,500 $ 55,500
Shoremicro (Radio System Redundant Bypass Link) $- $ 50,000 $- $ - $ - $ 50,000
Uninterruptible Power Supplies $- $- $ 42,465 $ - $ - $ 42,465
Virtual Private Network Replace $ 78,500 $- $- $ - $ - $ 78,500
VMware Infrastructure Upgrade $ 202,553 $ 110,250 $ 110,250 $ - $ - $ 423,053
Wireless System Citywide $- $- $- $70,641 $ - $ 70,641
Laguna Lake Dredging and Sediment Management
Project Implementation $ 150,000 $ 350,000 $ 350,000 $400,000 $400,000 $ 1,650,000
Laguna Lake Golf Course Maintenance $ 10,000 $ 20,000 $ 20,000 $20,000 $20,000 $ 90,000
Major Facility Maintenance $ 516,210 $ 524,243 $ 532,727 $541,532 $552,226 $ 2,666,938
ADA Transition Plan Implementation $9,920 $9,743 $ 10,727 $10,332 $10,226 $ 50,948
City Hall Fire Department Connection $ 58,000 $- $- $ - $ - $ 58,000
Corp Yard - Fuel Island Coating and Dispensers $- $- $- $115,000 $ - $ 115,000
Corp Yard Fuel Island Siding $- $- $- $178,000 $ - $ 178,000
Energy Management System $ 100,000 $ 100,000 $- $ - $ - $ 200,000
Facility Roll Up Door Replacements - Various Locations $5,290 $ 10,000 $ 17,000 $10,000 $15,000 $ 57,290
Fire Station #1- HVAC $ 140,000 $- $- $ - $ - $ 140,000
Fire Station #1 Administration Building Roof $- $ 81,500 $- $ - $ - $ 81,500
Fire Station #1 Fleet Maintenance Building Roof $- $ 20,000 $- $ - $ - $ 20,000
Fire Station #2 Roof $- $ 50,000 $- $ - $ - $ 50,000
Fire Station #3 Roof $- $ 50,000 $- $ - $ - $ 50,000
Fire Station #4 Exterior Paint $- $ 27,500 $- $ - $ - $ 27,500
Hydration Stations $- $3,000 $ 15,000 $11,000 $15,000 $ 44,000
Jack House Widows Walk Railing $- $- $- $85,000 $ - $ 85,000
Ludwick and Senior Center Paint and Shell Rehab $- $- $- $30,000 $260,000 $ 290,000
Ludwick Community Center Roof $- $- $- $35,000 $252,000 $ 287,000
Fleet Maintenance Lifts $- $- $ 490,000 $ - $ - $ 490,000 289Packet Page 308
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 5 Year Total
Police Department Roof Repair $ 20,000 $- $- $ - $ - $ 20,000
Police Evidence Storage Building Roof $- $ 37,000 $- $ - $ - $ 37,000
Police Range Roof $- $4,500 $- $22,200 $ - $ 26,700
Swim Center Bath House Ceiling $- $ 30,000 $- $ - $ - $ 30,000
Swim Center Bath House Roof $ 70,000 $- $- $ - $ - $ 70,000
Swim Center Olympic Pool Thermal Blankets $- $ 30,000 $- $ - $ - $ 30,000
Swim Center Re-Plaster Therapy Pool $ 90,000 $- $- $ - $ - $ 90,000
Swim Center Shower System Repair $ 15,000 $ 56,000 $- $ - $ - $ 71,000
Swim Center Therapy Pool Boiler $- $ 15,000 $- $45,000 $ - $ 60,000
Swim Center Therapy Pool Chemical Pumps $8,000 $- $- $ - $ - $ 8,000
Mission Plaza Restroom Replacements and
Enhancements $ 45,000 $ 150,000 $- $ 1,000,000 $ - $ 1,195,000
Neighborhood Traffic Improvements $- $- $ 75,000 $75,000 $75,000 $ 225,000
New Street Lights $ 75,000 $ 75,000 $ 25,000 $25,000 $25,000 $ 225,000
Open Space $ 140,000 $ 190,000 $ 260,000 $280,000 $280,000 $ 1,150,000
Ongoing Open Space Maintenance $ 40,000 $ 40,000 $ 60,000 $80,000 $80,000 $ 300,000
Open Space Acquisition $ 100,000 $ 150,000 $ 200,000 $200,000 $200,000 $ 850,000
Park Major Maintenance & Repairs $ 70,000 $ 555,000 $ 615,000 $560,000 $490,000 $ 2,290,000
Cheng Park Revitalization $- $ 50,000 $ 150,000 $ - $ - $ 200,000
Meadow and Santa Rosa Park Bleachers $- $- $ 10,000 $200,000 $200,000 $ 410,000
Mission Plaza Arbor $- $- $ 15,000 $70,000 $ - $ 85,000
Mission Plaza Pedestrian Bridge Replacement $- $- $- $50,000 $200,000 $ 250,000
Mission Plaza Railing Upgrade $ 35,000 $- $ 35,000 $35,000 $35,000 $ 140,000
Parks Play Surfacing $ 20,000 $ 30,000 $ 30,000 $30,000 $30,000 $ 140,000
Poinsettia Creek Walk $- $- $ 200,000 $ - $ - $ 200,000
Railroad Bike path fencing $- $- $ 150,000 $150,000 $ - $ 300,000
Sinsheimer Irrigation $- $ 225,000 $- $ - $ - $ 225,000
Sinsheimer Stadium Drainage $- $ 225,000 $- $ - $ - $ 225,000
Water Stations and Supply Lines $ 15,000 $ 25,000 $ 25,000 $25,000 $25,000 $ 115,000
Parking Lot Maintenance $- $ 20,000 $ 300,000 $405,000 $370,000 $ 1,095,000 290Packet Page 309
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 5 Year Total
1016 Walnut Street $- $- $ 100,000 $ - $ - $ 100,000
Emerson Park $- $ 10,000 $ 45,000 $ - $ - $ 55,000
Fire Station 2 $- $- $ 45,000 $ - $ - $ 45,000
French Park $- $ 10,000 $ 70,000 $ - $ - $ 80,000
Islay Park $- $- $ 10,000 $80,000 $ - $ 90,000
Laguna Lake $- $- $ 10,000 $135,000 $ - $ 145,000
Ludwick Community Center $- $- $ 10,000 $100,000 $ - $ 110,000
Meadow Park $- $- $ 10,000 $70,000 $ - $ 80,000
Santa Rosa Park $- $- $- $20,000 $370,000 $ 390,000
Parks and Recreation Interior Office Rehabilitation $ 400,000 $- $- $ - $ - $ 400,000
Pedestrian and Bicycle Pathway Maintenance $- $ 79,000 $ 80,000 $50,000 $100,000 $ 309,000
Bob Jones City to Sea Trail near WRRF $- $ 79,000 $ 80,000 $ - $ - $ 159,000
Railroad Safety Trail from Cal Poly to Taft Street $- $- $- $50,000 $100,000 $ 150,000
Pedestrian Crossing Improvements $ 40,000 $- $- $ - $ - $ 40,000
Johnson at Sydney $ 20,000 $- $- $ - $ - $ 20,000
Tank Farm at Poinsettia $ 20,000 $- $- $ - $ - $ 20,000
Pismo/Johnson/SL Creek Bank Stabilization $- $ 10,000 $ 10,000 $125,000 $ - $ 145,000
Playground Equipment Replacement $ 500,000 $ 160,000 $ 275,000 $450,000 $795,000 $ 2,180,000
DeVaul Ranch Playground $- $- $ 50,000 $350,000 $ - $ 400,000
Emerson Park Fitness Equipment $- $ 100,000 $- $ - $ - $ 100,000
Islay Hill Park Playground $ 500,000 $- $- $ - $ - $ 500,000
Laguna Hills Playground $- $- $- $ - $45,000 $ 45,000
Meadow Park Par Course $- $ 20,000 $- $ - $ - $ 20,000
Mitchell Park Playground $- $- $- $100,000 $750,000 $ 850,000
Vista Lago Mini Park Playground $- $ 40,000 $ 225,000 $ - $ - $ 265,000
Police Station Replacement $ 50,000 $- $ 465,000 $ 41,000,000 $ 9,000,000 $ 50,515,000
Sidewalk Replacement and Installation $ 46,000 $ 89,000 $ 100,000 $250,000 $250,000 $ 735,000
Solar Installations $- $- $- $ - $ - $-
Fire Station 1 $- $- $- $ - $ - $-
Swim Center $- $- $- $ - $ - $- 291Packet Page 310
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 5 Year Total
South Street Median Landscaping $- $ 15,000 $ 110,000 $ - $ - $ 125,000
Specific Plan Implementation $ 280,000 $- $ 18,000 $80,000 $ - $ 378,000
Broad Street Corridor Access Improvements $ 80,000 $- $ 18,000 $80,000 $ - $ 178,000
Sueldo Street Improvements $ 200,000 $- $- $ - $ - $ 200,000
Storm Drain System Replacement $ 205,000 $ 300,000 $ 550,000 $550,000 $550,000 $ 2,155,000
Drainage Infrastructure Replacement $ 180,000 $ 250,000 $ 500,000 $500,000 $500,000 $ 1,930,000
Trash Capture $ 25,000 $ 50,000 $ 50,000 $50,000 $50,000 $ 225,000
Street Reconstruction & Resurfacing $2,368,000 $1,600,054 $2,895,000 $ 2,098,902 $ 3,085,000 $ 12,253,956
Traffic Safety Implementation $ 10,000 $ 221,000 $- $ - $ - $ 231,000
Marsh at Broad Signal and Crossing Improvements $ 10,000 $ 221,000 $- $ - $ - $ 231,000
Traffic Signs & Striping Maintenance $- $ 25,000 $ 25,000 $25,000 $25,000 $ 100,000
Transportation Safety & Operations $- $ 55,000 $ 30,000 $30,000 $30,000 $ 145,000
Urban Forest Maintenance $ 175,797 $ 175,000 $ 175,224 $175,000 $172,314 $ 873,335
Grand Total $8,498,460 $8,612,547 $8,679,424 $ 49,781,711 $ 17,585,404 $ 93,514,546
292Packet Page 311
Capital Improvement
Project Number Project Name
91608 Active Transportation Plan
Project Classification Classification Description
CIP Project Function Infrastructure &
TransportationCommunity Priority Major City Goal & Other
Important ObjectivesPartnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 100,000.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 100,000.0.0.0.0.
Purpose and Need
This project will update and expand the Bicycle Transportation Plan to include pedestrians creating an Active Transportation Plan that addresses both Bicycle and
Pedestrian needs. This work will include a study of the City’s pedestrian transportation system including the development of pedestrian polices and plans consistent
with the scale of the City’s Bicycle Transportation Plan. This plan will also include updates for recently approved development projects and inclusion of modern
infrastructure types such as buffered and protected bicycle lanes.
293Packet Page 312
Capital Improvement
Project Number Project Name
1000045 Air Compressor Replacement - Fire Station
1
Project Classification Classification Description
CIP Project Function Community Safety
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.80,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 0.80,000.0.0.0.
Purpose and Need
The air compressor at Fire Station 1 was purchased and installed in 1995, making it 24 years old. This air compressor is used to refill air bottles used by
firefighters while working in hazardous environments. The life span of these compressors is 20 years. This funding will be used to replace the air
compressor.
294Packet Page 313
Capital Improvement
Project Number Project Name
91619 Anholm Neighborhood Greenway
Plan
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important
ObjectivesPartnership Project No
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 400,000.800,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Developer Contributions - Phase 1 150,000.0.0.0.0.
SB1 Road Repair Fund - Phase 1 250,000.0.0.0.0.
SB1 Road Repair Fund - Phase 2 0.800,000.0.0.0.
Purpose and Need
Design and Construct Phase 1 of the bicycle boulevard on Broad Street from US101 to Foothill. The project description is currently under study and
may include bikeway enhancements along Broad, Chorro and other area streets.
295Packet Page 314
Project Number Project Name
90572 Bicycle Facility Improvements -
Annual Asset Maintenance Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important
ObjectivesPartnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 100,000.100,000.100,000.100,000.100,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 100,000.100,000.100,000.100,000.100,000.
Purpose and Need
This funding allows the City to complete small-scale bicycle facility improvements in a cost-efficient manner by incorporating important improvements
into larger projects such as annual roadway paving work. Typical improvements include removal of storm drain grates that impact bike lanes, bike lane
signing and striping, and shared lane markings in conjunction with other larger projects.
Capital Improvement Plan
296Packet Page 315
Project Number Project Name
1000029 Bridge Maintenance - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 100,000.100,000.100,000.75,000.75,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 100,000.0.100,000.0.75,000.
SB1 Road Repair Fund 0.100,000.0.75,000.0.
Purpose and Need
The City of San Luis Obispo has 38 vehicular bridges and 11 pedestrian bridge ranging in age from one to 100+ years old. In accordance with Title 23 of
the Code of Federal Regulations (Federal Highway Act) and the National Bridge Inspection Standards, CalTrans provides bridge inspections on vehicular
bridges over 20’ in length every 2 to 4 years. If the service life has been exceeded or maintenance is not sufficient to correct deficiencies, then bridges are
recommended for rehabilitation or replacement. The following bridges have been identified for maintenance:
2021 – Broad St. Bridge near El Capitan (49C-445) – Deck Seal;
2021 – Nipomo St. Bridge near Monterey (49C-369) – Deck Seal;
2021 – Fuller Road Bridge near Broad (49C-463) – Deck Seal;
2022 – Murray St. Near Santa Rosa (49C-397) – Crack Sealing / Concrete Repairs;
2022 – Chorro St. near Monterey/Higuera (49C-405) – Crack Sealing / Concrete Repairs;
2022 – Broad St. Culver near Capitolio Way – Crack Sealing / Concrete Repairs;
2023 – Marsh St. @ Hwy 101 on/off ramp (49C-415) – Crack Sealing / Concrete Repairs
Capital Improvement Plan
297Packet Page 316
Capital Improvement Plan
Project Number Project Name
91584 Community Safety Emergency
Response Communication
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project Yes
Project Classification Information Technology
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 380,000.500,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 380,000.250,000.0.0.0.
Capital Outlay Fund - Developer Contributions 0.250,000.0.0.0.
Purpose and Need
This project will replace the existing communication equipment and shelter located on South Hill in 2019-20 as well as install new communication equipment
and shelter near Highway 1 and Highland Drive. The existing communication equipment and shelter located on South Hill have reached the end of their
useful life. The new installation near Highway 1 and Highland Drive will mitigate impacts of recently approved development projects on Foothill Drive to City
communication.
298Packet Page 317
Project Number Project Name
1000055 Council Hearing Room Tenant Improvements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 100,000.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 100,000.0.0.0.0.
Purpose and Need
This project will update the Council Hearing Room and install dish washing facilities in the City Hall Breakroom.
Capital Improvement Plan
299Packet Page 318
Capital Improvement Plan
Project Number Project Name
1000056 Development Agreements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other
Important ObjectivesPartnership Project Yes
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 1,032,750.700,000.370,000.250,000.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Infrastructure Invest CIP Fund
Avila Ranch - Buckley Extension Class I 0.200,000.120,000.0.0.
Avila Ranch - South Higuera Sidewalk 112,750.0.0.0.0.
Avila Ranch - Vachell Class 2 Lanes 260,000.0.0.0.0.
SL Ranch - Bob Jones (Calle Joaquin to Froom)0.500,000.250,000.0.0.
SL Ranch - LOVR and Froom 0.0.0.0.0.
SL Ranch - LOVR IC 0.0.0.250,000.0.
SL Ranch - Madonna & Oceanaire Intersection 120,000.0.0.0.0.
SL Ranch - Madonna Class I 340,000.0.0.0.0.
Sueldo Street Improvements 200,000.0.0.0.0.
Purpose and Need
City's proportional share of infrastructure constructed by development
300Packet Page 319
Project Number Project Name
1000048 Electric Vehicle Charging Stations at City Hall
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 5,000.95,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
General Capital Outlay 5,000.45,000.0.0.0.
Grant 0.50,000.0.0.0.
Purpose and Need
This project will install electric vehicle charging stations in the City Hall parking lot.
Capital Improvement Plan
301Packet Page 320
Project Number Project Name
1000047 Fleet Replacements - Annual Asset Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 3,570,000.3,255,000.1,021,000.1,043,000.987,500.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.646,000.585,500.550,000.
Local Revenue Measure 515,000.380,000.50,000.120,000.120,000.
Parking Fund 0.0.0.35,000.35,000.
Sewer Fund 0.0.40,000.207,500.180,000.
Water Fund 180,000.0.0.95,000.0.
Whale Rock Fund 0.0.35,000.0.102,500.
Grant - Bus Replacements 2,875,000.2,875,000.250,000.0.0.
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement Guidelines include
the evaluation of the following criteria: Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and
Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within
the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged
locally while meeting the end users’ operational needs. Fleet services utilizes renewable diesel in all general fleet diesel powered units needed for
operations.
Capital Improvement Plan
302Packet Page 321
Project Number Project Name
1000074 IT Replacements - Annual Asset Maintenance Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Information Technology
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 1,011,624 936,250 532,008 552,445 520,864
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 287,553 289,050 481,473 510,777 520,864
Local Revenue Measure 597,150 615,200 21,000 - -
Parking Fund 19,717 3,965 4,160 4,279 -
Sewer Fund 50,303 9,989 11,438 19,358 -
Transit Fund 5,915 4,455 1,201 3,157 -
Water Fund 46,935 11,875 10,378 13,753 -
Whale Rock Fund 4,051 1,716 2,358 1,121 -
Purpose and Need
This project replaces Information Technology Assets based upon equipment lifespan, condition, and organizational needs.
Capital Improvement Plan
303Packet Page 322
Project Number Project Name
91392 Laguna Lake Dredging and Sediment Management Project
Implementation
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Community Improvement
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 150,000.350,000.350,000.400,000.400,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 150,000.350,000.350,000.400,000.400,000.
Purpose and Need
The Laguna Lake Nature Reserve, including Laguna Lake, is 344-acres of City owned land. Laguna Lake is a naturally occurring water body although
the lake and surrounding watershed have been modified including the rerouting of Prefumo Creek into Laguna Lake. The rerouting of Prefumo
Creek in the early 1960s has increased and accelerated sediment deposits into the lake. This project will establish a basic maintenance dredging
routine for the lake. The City has been working to develop a dredging program for several years. Currently the plans, specifications, and permitting
efforts are underway and nearing completion. Funding is proposed to complete dredging work and implement shoreline stablization proximate to
the park area during the 2019-21 timeframe once all permits have been received.
Capital Improvement Plan
304Packet Page 323
Project Number Project Name
1000030 Laguna Lake Golf Course - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Culture & Recreation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 10,000.20,000.20,000.20,000.20,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 10,000.20,000.20,000.20,000.20,000.
Purpose and Need
This new Annual Asset Maintenance Project for the Laguna Lake Golf Course will provide funding to begin the replacement of the 40 year old irrigation
system, increase water efficiencies by reducing leakage, and increase playability and safety of the turf.
Capital Improvement Plan
305Packet Page 324
Project Number Project Name
1000075 Major Facilities Maintenance - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Public Facility
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 516,210.524,243.532,727.546,532.572,226.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 125,290.149,000.507,000.475,200.527,000.
Local Revenue Measure 390,920.375,243.25,727.66,332.25,226.
Sewer Fund 0.0.0.2,500.10,000.
Water Fund 0.0.0.2,500.10,000.
Purpose and Need
This funding provides for capital maintenance of facilities that will reduce unplanned repair costs and optimize energy use by providing planned
equipment replacements and building shell sealing. Benefit of proper infrastructure maintenance reduce the cost of major repairs, increase energy
efficiency, reduce the total lifecycle cost of ownership of a facility, and ensure the facilities remain in operable condition.
Capital Improvement Plan
306Packet Page 325
Project Number Project Name
91439 Mission Plaza Restroom Replacements and Enhancements
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Community Improvement
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 45,000.150,000.1,000,000.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 45,000.150,000.1,000,000.0.0.
Purpose and Need
This funding will complete the project scope and environmental reports in 2019-20 and fund the design and engineering plans of the replacement of the
Mission Plaza Restroom.
Capital Improvement Plan
307Packet Page 326
Project Number Project Name
91612 Neighborhood Traffic Improvements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.75,000.75,000.75,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.75,000.75,000.75,000.
Purpose and Need
This funding continues the efforts to improve traffic conditions in existing neighborhoods. Each year the City receives requests for solutions to speeding
and cut-through traffic problems. This funding allows for implementation of small to moderately sized projects to correct traffic related problems.
Occasionally, larger needs are scoped and developed into stand-alone projects and budgeted individually.
Capital Improvement Plan
308Packet Page 327
Project Number Project Name
91616 Street Lights - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 75,000.75,000.25,000.25,000.25,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 75,000.75,000.25,000.25,000.25,000.
Purpose and Need
This annual asset account supports the establishment of new street lights requested by the community.
Capital Improvement Plan
309Packet Page 328
Project Number Project Name
91397 Open Space - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 40,000.40,000.60,000.80,000.80,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 40,000.40,000.60,000.80,000.80,000.
Purpose and Need
This project supports continued implementation of the City’s adopted Open Space Maintenance Plan. The ongoing maintenance of all City Open Space is
premised on the protection of natural resources, including plants, animals, geologic and historic features and the natural areas themselves.
Maintenance includes: enhancement to existing trailheads, maintenance and construction of approved and sustainable trails and open space facilities
for passive recreation purposes only, removal of illicit materials and trails, improved user and natural resource safety, land restoration and stewardship
projects, invasive species treatment and control, erosion control and stabilization, education of users via patrols and community outreach, and
management of the wildland-urban interface.
Capital Improvement Plan
310Packet Page 329
Project Number Project Name
99837 Open Space Acquisition
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 100,000.150,000.200,000.200,000.200,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 100,000.150,000.200,000.200,000.200,000.
Purpose and Need
The City continues to actively pursue land purchases and conservation easements to enhance the greenbelt around the City which protects watersheds
and maintains habitat connectivity. This funding is largely levered by grant funding to implement open space acquisition.
Capital Improvement Plan
311Packet Page 330
Project Number Project Name
91385 Parks Major Maintenance - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 70,000.555,000.615,000.560,000.490,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.375,000.470,000.400,000.
Local Revenue Measure 70,000.555,000.240,000.90,000.90,000.
Purpose and Need
Parks require ongoing maintenance in order to continue to provide users a safe and quality experience. This Annual Asset Maintenance Account provides
ongoing funding for the maintenance and replacement of a park infrastructure. This account provides funding annually for parks surfacing maintenance
and water supply infrastructure including the installation of hydration stations. Larger maintenance projects include:
2019-20: Mission Plaza Railing Replacement;
2020-21: Sinsheimer Stadium Irrigation and Drainage Replacement;
2021-22: Cheng Park Rehabilitation, Railroad Bike Path Fencing and Mission Plaza Railing Replacements;
2022-23: Railroad Bike Path Fencing, Meadow Park Bleacher Replacement, and Mission Plaza Railing Replacement;
2023-24: Santa Rosa Park Bleacher Replacement, Mission Plaza Pedestrian Bridge Replacement and Mission Plaza Railing Replacement
Capital Improvement Plan
312Packet Page 331
Project Number Project Name
1000031 Parking Lot Maintenance - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.520,000.300,000.405,000.370,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.185,000.405,000.370,000.
Local Revenue Measure 0.20,000.115,000.0.0.
Grant 0.500,000.0.0.0.
Purpose and Need
The total area of City maintained parking lots is approximately 360,000 square feet or 8.3 acres. In order to increase the percentage of lot surfaces in good
condition, regular maintenance needs to be completed. The following parking lots have been identified for maintenance and repair:
2021 Construction – 1016 Walnut Parking Lot – Pavement Area 4;
2020 Design / 2021 Construction – French Park – Pavement Area 3;
2020 Design / 2021 Construction - Emerson Park – Pavement Area 4;
2020 Design / 2021 Construction - Bus Yard
2021 Design / 2022 Construction – Islay Park – Pavement Area 3;
2021 Construction - Fire Station 2 – Pavement Area 7
2021 Design / 2022 Construction - Meadow Park – Pavement Area 4;
2021 Design / 2022 Construction - Ludwick Community Center – Pavement Area 1;
2021 Design / 2022 Construction - Laguna Lake – Pavement Area 5;
2022 Design / 2023 Construction - Santa Rosa Park – Pavement Area 1;
Capital Improvement Plan
313Packet Page 332
Project Number Project Name
91562 Parks and Recreation Interior Office Rehabilitation
Project Classification Classification Description
CIP Project Function Culture & Recreation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 400,000.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 400,000.0.0.0.0.
Purpose and Need
This project will rehabilitate the interior of the Parks and Recreation Administration Building located at 1341 Nipomo Street. The existing interior
and office furnishings are over 20 years old and have reached the end of their useful life. This project will replace the existing office furnishing to
provide for more efficient work group collaboration, provide new durable flooring, provide new IT infrastructure and paint the interior of the
building.
Capital Improvement Plan
314Packet Page 333
Project Number Project Name
1000032 Pedestrian and Bicycle Pathway - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.79,000.80,000.50,000.100,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.0.50,000.100,000.
Local Revenue Measure 0.79,000.80,000.0.0.
Purpose and Need
There are approximately 6.5 miles of asphalt concrete pathways and bike paths within the City. Examples of these paths are the Railroad Safety Trail,
the Bob Jones Trail, and various pathways located within City Parks. These pathways are used by bicycles and pedestrians, along with occasional
service vehicles. To maintain accessibility to these facilities and reduce the risk of accidents, regular maintenance of pathways is important. Projects
include:
2020-21: Bob Jones City to Sea Trail near the Water Resource Recovery Facility;
2023-24: Railroad Safety Trail from Cal Poly to Taft Street
Capital Improvement Plan
315Packet Page 334
316Packet Page 335
Project Number Project Name
1000035 Pismo/Johnson/SL Creek Bank Stabilization
Project Classification Classification Description
CIP Project Function Community Safety
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.10,000.10,000.125,000.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 0.10,000.10,000.125,000.0.
San Luis Creek passes under Johnson Avenue near Pismo Street. San Luis Creek is starting to erode the creek bank which will ultimately destabilize
Pismo Street. This project will stabilize the creek bank and protect Pismo Street from further erosion.
Purpose and Need
Capital Improvement Plan
317Packet Page 336
Project Number Project Name
1000033 Playground Equipment Replacement - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Community Improvement
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 500,000.160,000.275,000.450,000.795,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 500,000.160,000.225,000.0.0.
Capital Outlay Fund 0.0.50,000.450,000.795,000.
Purpose and Need
In 2008, the State passed AB 1144 which mandates that all play equipment constructed between 1994 and 1999 be replaced or upgraded within 15
years of installation.
2020 Construction - Islay Hill Park Playground (1997);
2020 Design / 2021 Construction - Vista Lago Mini Playground (2001);
2021 Design / 2022 Construction - DeVaul Ranch Playground (2002);
2022 Design / 2023 Construction - Mitchel Park Playground (2003);
2023 Design - Laguna Hills Playground (2004).
Capital Improvement Plan
318Packet Page 337
Project Number Project Name
91365 Police Station Replacement
Project Classification Classification Description
CIP Project Function Community Safety
Community Priority Local Revenue Measure
Partnership Project Yes
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 50,000.0.465,000.41,000,000.9,000,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 50,000.0.465,000.0.0.
Bonds, Infrastructure Loan 0.0.0.41,000,000.9,000,000.
Purpose and Need
The current Police Department building was assessed a being insufficiently sized to meet present and future needs of the Department, necessitating
full replacement of the facility. The site selected for the new facility was the same location as the existing building at 1046 Walnut Street. This
ongoing project will continue the development of the planning package and building renderings necessary for future architectural design,
engineering, and cost estimating elements.
Capital Improvement Plan
319Packet Page 338
Project Number Project Name
90849 Sidewalk Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important
ObjectivesPartnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 46,000.89,000.100,000.250,000.250,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 46,000.89,000.100,000.150,000.250,000.
SB1 Road Repair Fund 0.0.0.100,000.0.
Purpose and Need
The City has an established system of streets with curbs, gutters, and sidewalks. The City’s sidewalk system is comprised of 202 miles of sidewalk
and 2436 points at intersections where pedestrians cross the street. Of the 2436 points at intersections, 700 Americans with Disabilities (ADA)
compliant curb ramps are provided, 1207 non-ADA compliant curb ramps are provided, and there are 526 locations with no curb ramps between
the street and sidewalk. New replacement installations of sidewalk and curb ramps are required to continue the City’s program to provide a
complete and accessible pedestrian path of travel.
Capital Improvement Plan
320Packet Page 339
Project Number Project Name
1000025, 1000026, and
1000095
Solar Installation
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Public Facility
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Transit Fund 0.0.0.0.0.
General Capital Outlay 0.0.0.0.0.
Purpose and Need
This project implements a Power Purchase Agreement for the procurement of solar power without capital expenditures. A third-party solar developer takes
on all responsibility to finance, design, construct, operate, and maintain the solar installation. The City receives and purchases energy at a contractually
specified rate from the developer and PG&E continues to provide electrical services to the site for any consumption that is not covered by the power
generated by the solar installation. This allows the City access to solar installations with no upfront capital costs and to realize an immediate financial benefit
by paying less for energy produced by the solar installation than what was being paid to PG&E. The planned installation sites are the Bus Yard, Swim Center,
and Fire Station 1.
Capital Improvement Plan
321Packet Page 340
Project Number Project Name
1000037 South Street Median Landscaping
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Community Priority None
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.15,000.110,000.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.110,000.0.0.
Local Revenue Measure 0.15,000.0.0.0.
Purpose and Need
Caltrans and the City collaboratively installed medians in South Street as part of a traffic safety improvement project. This traffic safety project
established all necessary infrastructure to support planted medians in South Street. This project will install the landscaping and irrigation system in the
medians on South Street.
Capital Improvement Plan
322Packet Page 341
Project Number Project Name
90742 Storm Drains Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Community Safety
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 205,000.300,000.550,000.550,000.550,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 205,000.50,000.550,000.50,000.550,000.
SB1 Road Repair Fund 0.250,000.0.500,000.0.
Purpose and Need
This annual asset maintenance project addresses capital maintenance and replacement of pipe, culvert and constructed drainage channels to provide
increased flood protection and reduced likelihood of loss of property.
2019 - Bullock Storm Drain Replacement;
2020 – Broad and Leff Culvert Repair;
2021 – Luneta & Rafael CMP Replacement;
2021 – Funston & Lawton CMP Replacement;
2022 – Buchon & Santa Rosa Storm Drainage Improvements.
Capital Improvement Plan
323Packet Page 342
Project Number Project Name
90346 Street Reconstruction and Resurfacing - Annual Asset
Maintenance Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 2,218,000.1,600,054.2,895,000.2,098,902.3,085,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 1,650,000.1,425,054.1,490,000.1,303,902.1,550,000.
SB1 Road Repair Fund 568,000.175,000.1,405,000.795,000.1,535,000.
Purpose and Need
Pavement maintenance is an ongoing need and provides increased roadway life and a smooth pavement surface. The City’s Pavement Management Plan
(PMP), adopted in 1998, established nine pavement maintenance zones within the City, and a plan in which each of these areas received maintenance on
an eight-year rotation. In 2009, the City Council approved a modified PMP that provided greater priority for arterial streets while maintained the eight-
year rotation for maintenance work on local. The City maintains a total of 133 miles of roadways. Identified projects are as follows:
2019 – South Broad Street;
2020 – Areas 4 & 5 Local and Collector Streets;
2021 – Marsh, Higuera, and Johnson/Phillips/Pepper;
2022 – Area 6 & 7 Local and Collector Streets;
2023 – Monterey Street (Santa Rosa to HWY101);
2024 – Area 8 & 9 Local and Collector Streets;
2025 – Santa Barbara Avenue (Broad to Osos)
Capital Improvement Plan
324Packet Page 343
Project Number Project Name
91295 Traffic Safety Implementation
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 10,000.221,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 10,000.221,000.0.0.0.
Purpose and Need
The City completes annual safety reports which identify changes that can be made to the City’s roadways to enhance safety. This funding will be used to
implement the highest priority safety improvements identified in the Traffic Safety Report.
Capital Improvement Plan
325Packet Page 344
Project Number Project Name
90943 Traffic Signs and Striping Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.25,000.25,000.25,000.25,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 0.25,000.25,000.25,000.25,000.
Purpose and Need
The City is responsible to maintain approximately 15,000 traffic signs and 133 miles of roadway striping. The Federal Highway Administration has
adopted a mandate requiring public agencies to maintain minimum reflectivity standards to help ensure nighttime visibility. Specifically, this funding will
be used to replace signs, lanes lines, stop bars, marked crosswalks and other roadway indicators enhancing safety for motorists, cyclist and pedestrians.
Capital Improvement Plan
326Packet Page 345
Project Number Project Name
1000073 Transportation Safety and Operations
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.135,000.30,000.50,000.30,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 0.55,000.30,000.30,000.30,000.
Transportation Impact Fee Fund 0.80,000.0.20,000.0.
Purpose and Need
The City completes annual safety reports which identify changes that can be made to the City’s roadways to enhance safety. This funding will be used to
implement the highest priority safety improvements identified in the Traffic Safety Report.
Capital Improvement Plan
327Packet Page 346
Project Number Project Name
1000027 Urban Forest - Annual Asset Maintenance Account
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 175,797.175,000.175,224.175,000.172,314.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 175,797.175,000.175,224.175,000.172,314.
The City’s Urban Forest is comprised of approximately 20,000 public trees. Regular tree pruning and related maintenance provides for an attractive,
healthy, and safer urban forest. This funding will be used to provide annual tree pruning in neighborhoods and the downtown.
Purpose and Need
Capital Improvement Plan
328Packet Page 347
Outside Agency Funding and Fee Programs
Fund Source Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $2,975,000 $3,555,000 $ 350,000 $120,000 $100,000 $ 7,100,000
State or Federal Grant $2,875,000 $3,375,000 $ 250,000 $ - $ - $ 6,500,000
Transportation Impact Fee $- $ 80,000 $- $20,000 $ - $ 100,000
Zone 9 $ 100,000 $ 100,000 $ 100,000 $100,000 $100,000 $ 500,000
Asset Replacement $2,700,000 $9,205,000 $ 650,000 $ - $ - $ 12,555,000
State or Federal Grant $- $5,545,000 $ 650,000 $ - $ - $ 6,195,000
Transportation Impact Fee $2,700,000 $3,660,000 $- $ - $ - $ 6,360,000
New Asset $1,820,000 $28,415,000 $3,469,026 $887,000 $ 5,812,714 $ 40,403,740
Developer Contribution $ 300,000 $11,550,000 $- $ - $ - $ 11,850,000
Parkland Development $- $ 965,000 $3,075,026 $400,000 $ 5,445,714 $ 9,885,740
State or Federal Grant $- $7,485,260 $- $ - $ - $ 7,485,260
Transportation Impact Fee $1,520,000 $8,414,740 $ 394,000 $487,000 $367,000 $ 11,182,740
Grand Total $7,495,000 $41,175,000 $4,469,026 $ 1,007,000 $ 5,912,714 $ 60,058,740
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Anholm Neighborhood
Greenway
$ 150,000 $- $- $ - $ - $ 150,000
Bus Wash Replacement $- $ 75,000 $ 650,000 $ - $ - $ 725,000
California & Taft
Roundabout
$2,300,000 $- $- $ - $ - $ 2,300,000
Community Safety
Emergency Response
Communication
Equipment
$- $ 250,000 $- $ - $ - $ 250,000
Development Related
Park Improvements
$- $ 300,000 $3,075,026 $400,000 $ 5,445,714 $ 9,220,740
Electric Vehicle Charging
Station at City Hall
$- $ 50,000 $- $ - $ - $ 50,000 329Packet Page 348
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Fleet Replacement – Bus
Replacement
$2,875,000 $2,875,000 $ 250,000 $ - $ - $ 6,000,000
LOVR Spur of the Bob
Jones Bike Path
$ 200,000 $2,000,000 $- $ - $ - $ 2,200,000
North Broad Street
Neighborhood Park2
$- $ 665,000 $- $ - $ - $ 665,000
Parking Lot
Maintenance
$- $ 500,000 $- $ - $ - $ 500,000
Penny Lane Bridge at
Union Pacific Railroad
$- $ 150,000 $- $ - $ - $ 150,000
Prado Road Bridge &
Road Widening
$ 400,000 $9,000,000 $- $ - $ - $ 9,400,000
Prado Road Interchange $1,350,000 $25,000,000 $ 367,000 $367,000 $367,000 $ 27,451,000
Silt Removal $ 100,000 $ 100,000 $ 100,000 $100,000 $100,000 $ 500,000
Specific Plan
Implementation
$ 120,000 $- $ 27,000 $120,000 $ - $ 267,000
Transit Fair Box
Replacement
$- $ 130,000 $- $ - $ - $ 130,000
Transportation Safety &
Operations
$- $ 80,000 $- $20,000 $ - $ 100,000
Grand Total $7,495,000 $41,175,000 $4,469,026 $ 1,007,000 $ 5,912,714 $ 60,058,740
2 Project funding is within the Parkland Development Fund although these funds are actually General Funds. This action me morized previous Council’s commitment
to use this funding for future park development. 330Packet Page 349
Capital Improvement
Project Number Project Name
91619 Anholm Neighborhood Greenway
Plan
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important
ObjectivesPartnership Project No
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 400,000.800,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Developer Contributions - Phase 1 150,000.0.0.0.0.
SB1 Road Repair Fund - Phase 1 250,000.0.0.0.0.
SB1 Road Repair Fund - Phase 2 0.800,000.0.0.0.
Purpose and Need
Design and Construct Phase 1 of the bicycle boulevard on Broad Street from US101 to Foothill. The project description is currently under study and
may include bikeway enhancements along Broad, Chorro and other area streets.
331Packet Page 350
Project Number Project Name
1000053 Bus Wash Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.75,000.650,000.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Grant 0.75,000.650,000.0.0.
Purpose and Need
Cleanliness of buses is often cited as a barrier to use of public transit. The City's buses provide over 1 million rides times per year and the City's
buses are rated very high regarding cleanliness. The bus wash sytem that helps us achieve such high satisfaction marks is now reaching the end of
its federally defined useful life and failing. This project will allow the City to maintain a high standard of clean and attractive vehicles that represent
our City's public transit service.
Capital Improvement Plan
332Packet Page 351
Capital Improvement Plan
Project Number Project Name
91503 California Taft Roundabout
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other
Important ObjectivesPartnership Project Yes
Project Classification Transportation
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 2,300,000.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Transportation Impact Fee Fund - Debt Financed 2,300,000.0.0.0.0.
Purpose and Need
Installation of a roundabout at California & Taft.
333Packet Page 352
Capital Improvement Plan
Project Number Project Name
91584 Community Safety Emergency
Response Communication
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project Yes
Project Classification Information Technology
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 380,000.500,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 380,000.250,000.0.0.0.
Capital Outlay Fund - Developer Contributions 0.250,000.0.0.0.
Purpose and Need
This project will replace the existing communication equipment and shelter located on South Hill in 2019-20 as well as install new communication equipment
and shelter near Highway 1 and Highland Drive. The existing communication equipment and shelter located on South Hill have reached the end of their
useful life. The new installation near Highway 1 and Highland Drive will mitigate impacts of recently approved development projects on Foothill Drive to City
communication.
334Packet Page 353
Capital Improvement Plan
Project Number Project Name
1000057 Development Related Parks Improvements
Project Classification Classification Description
CIP Project Function Culture & Recreation
Community Priority Major City Goal & Other Important Objectives
Partnership Project Yes
Project Classification Community Improvement
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.300,000.3,075,026.4 400,000.5,445,714.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parkland Development Fund - Laguna Lake
Park
0.300,000.2,875,026.4 0.0.
Parkland Development Fund - New Orcutt
Area Park
0.0.200,000.400,000.5,445,714.
Purpose and Need
The City will be utilizing the Parkland Development Fund from the San Luis Ranch Specific Plan and Orcutt Area Specific Plan (OASP) to enhance the Laguna
Lake Park and to develop a new park system in the Orcutt area respectively. Enhancements to Laguna Lake Park will be tied to the Update to the Parks and
Recreation Master Plan and Element Plan. With the dedication of parkland and park improvement fees collected within the Orcutt area, the City will be
developing parks as provded in the OASP documents.
335Packet Page 354
Project Number Project Name
1000048 Electric Vehicle Charging Stations at City Hall
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 5,000.95,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
General Capital Outlay 5,000.45,000.0.0.0.
Grant 0.50,000.0.0.0.
Purpose and Need
This project will install electric vehicle charging stations in the City Hall parking lot.
Capital Improvement Plan
336Packet Page 355
Project Number Project Name
1000047 Fleet Replacements - Annual Asset Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 3,570,000.3,255,000.1,021,000.1,043,000.987,500.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.646,000.585,500.550,000.
Local Revenue Measure 515,000.380,000.50,000.120,000.120,000.
Parking Fund 0.0.0.35,000.35,000.
Sewer Fund 0.0.40,000.207,500.180,000.
Water Fund 180,000.0.0.95,000.0.
Whale Rock Fund 0.0.35,000.0.102,500.
Grant - Bus Replacements 2,875,000.2,875,000.250,000.0.0.
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement Guidelines include
the evaluation of the following criteria: Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and
Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within
the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged
locally while meeting the end users’ operational needs. Fleet services utilizes renewable diesel in all general fleet diesel powered units needed for
operations.
Capital Improvement Plan
337Packet Page 356
Project Number Project Name
1000061 LOVR Spur of the Bob Jones Bike Path
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important Objectives
Partnership Project Yes
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 200,000.2,000,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Infrastructure Invest CIP Fund 150,000.1,500,000.0.0.0.
Transportation Impact Fee
Fund
50,000.500,000.0.0.0.
Purpose and Need
This project will provided a protected bicycle facility from the LOVR Interchange to Froom Ranch Road.
Capital Improvement Plan
338Packet Page 357
Project Number Project Name
91683 North Broad Street Neighborhood Park
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Community Priority None
Partnership Project No
Project Classification Community Improvement
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.665,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parkland Development Fund 0.665,000.0.0.0.
Purpose and Need
This new park arose out of direction provided by Council in the 2017-19 Financial Plan. Staff was directed to pursue a park site in this
neighborhood that facilitates a Park and the Broad Street Bike Boulevard. The existing, $740,000 General Fund contribution, designated in the
Parkland Fund for the Park in this neighborhood, was to be reevaluated at the 2019-21 Financial Plan if no active pursuit of property was underway.
Design Funding of $75,000 was appropriated in the 2018 Mid-Year Budget. When it became clear that a joint park/Broad Street Bike Boulevard was
not possible, staff met with the neighborhood leadership in an effort to identify other property for this purpose. Consistent with the General Parks
and Recreation Element, Parks and Recreation staff presented residents with the alternative park location at the existing community gardens, 533
Broad Street, which is land owned by the City. This potential park location has received positive feedback.
At this time the project is currently being scoped with neighborhood input. Some possible features of a new neighborhood park in this location
could include minor landscaping without grass, rock features, ground cover mulch, raised planter beds, concrete pathways with lighting, fencing,
seating, and shade and play structures. This design involves significant community outreach efforts to guide the design based upon community
needs. Construction is planned for the 2020-21 Fiscal Year.
Capital Improvement Plan
339Packet Page 358
Project Number Project Name
1000031 Parking Lot Maintenance - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Community & Neighborhood Livability
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.520,000.300,000.405,000.370,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.185,000.405,000.370,000.
Local Revenue Measure 0.20,000.115,000.0.0.
Grant 0.500,000.0.0.0.
Purpose and Need
The total area of City maintained parking lots is approximately 360,000 square feet or 8.3 acres. In order to increase the percentage of lot surfaces in good
condition, regular maintenance needs to be completed. The following parking lots have been identified for maintenance and repair:
2021 Construction – 1016 Walnut Parking Lot – Pavement Area 4;
2020 Design / 2021 Construction – French Park – Pavement Area 3;
2020 Design / 2021 Construction - Emerson Park – Pavement Area 4;
2020 Design / 2021 Construction - Bus Yard
2021 Design / 2022 Construction – Islay Park – Pavement Area 3;
2021 Construction - Fire Station 2 – Pavement Area 7
2021 Design / 2022 Construction - Meadow Park – Pavement Area 4;
2021 Design / 2022 Construction - Ludwick Community Center – Pavement Area 1;
2021 Design / 2022 Construction - Laguna Lake – Pavement Area 5;
2022 Design / 2023 Construction - Santa Rosa Park – Pavement Area 1;
Capital Improvement Plan
340Packet Page 359
Project Number Project Name
1000070 Penny Lane Bridge at Union Pacific Railroad
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important Objectives
Partnership Project Yes
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.150,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Transportation Impact Fee
Fund
0.150,000.0.0.0.
Purpose and Need
Project study of Penny Lane Connection and potential alternatives .
Capital Improvement Plan
341Packet Page 360
Project Number Project Name
91252 Prado Road Bridge Widening
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important Objectives
Partnership Project Yes
Project Classification Transportation
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 400,000.9,000,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Transportation Impact Fee Fund
- Debt Financed
400,000.3,660,000.0.0.0.
Grant 0.5,340,000.0.0.0.
Purpose and Need
This project will widening Prado Road Bridge over the San Luis Creek to relieve traffic congestion and improve traffic circulation. Construction is
anticipated to begin in Fiscal Year 2020-21.
Capital Improvement Plan
342Packet Page 361
Project Number Project Name
1000046 Silt Removal
Project Classification Classification Description
CIP Project Function Community Safety
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 100,000.100,000.100,000.100,000.100,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Grant - Zone 9 100,000.100,000.100,000.100,000.100,000.
Purpose and Need
Silt carried by storm water settles at points in the creek where the storm water’s velocity decreases. This reduction in velocity allows solids
suspended in the water to settle out. As these deposits build up, the capacity of the creek decreases and risk of flooding of the surrounding areas
increases. The regular removal of built up silt increases channel capacity and removes the conditions conducive for blocking flow.
Capital Improvement Plan
343Packet Page 362
Project Number Project Name
91609, 1000097 Specific Plan Implementation
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important
ObjectivesPartnership Project Yes
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2022-23
Contract Services 400,000.0.45,000.200,000.200,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2022-23
Infrastructure Invest CIP Fund
Broad Street Corridor 80,000.0.18,000.80,000.80,000.
Sueldo Street Improvements 200,000.
Transportation Impact Fee
Fund Broad Street Corridor 120,000.0.27,000.120,000.120,000.
Purpose and Need
Installation of pedestrian improvements along the Broad Street corridor in compliance with the Broad Street Specific Plan. Sueldo Street
Improvements allow for implementation of the Airport Area Specific Plan.
Capital Improvement Plan
344Packet Page 363
Project Number Project Name
1000072 Transit Fair Box Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.130,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Grant 0.130,000.0.0.0.
Purpose and Need
Currently the City uses salvaged fareboxes from older retired vehicles as the payment and pass processing equipment for the bus fleet. These
fareboxes have exceeded their useful life and require frequent repairs due to their age. This creates challenges since there is limited avalibality
of parts to repair this older equipment.
Capital Improvement Plan
345Packet Page 364
Project Number Project Name
1000073 Transportation Safety and Operations
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.135,000.30,000.50,000.30,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Local Revenue Measure 0.55,000.30,000.30,000.30,000.
Transportation Impact Fee Fund 0.80,000.0.20,000.0.
Purpose and Need
The City completes annual safety reports which identify changes that can be made to the City’s roadways to enhance safety. This funding will be used to
implement the highest priority safety improvements identified in the Traffic Safety Report.
Capital Improvement Plan
346Packet Page 365
Water Fund
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $10,223,935 $11,612,875 $3,744,378 $ 8,707,253 $ 9,436,000 $ 43,724,441
Asset Replacement $- $ 175,000 $- $ - $ - $ 175,000
Grand Total $10,223,935 $11,787,875 $3,744,378 $ 8,707,253 $ 9,436,000 $ 43,899,441
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Buchon-Santa Rosa Intersection Improvements $- $ 150,000 $- $ - $ - $ 150,000
Energy Efficiency Project $5,500,000 $8,800,000 $- $ - $ - $ 14,300,000
Fire Hydrants $ 40,000 $ 40,000 $ 40,000 $40,000 $40,000 $ 200,000
Fleet Replacement $ 180,000 $- $- $95,000 $ - $ 275,000
Utilities Hybrid Sedan $- $- $- $17,500 $ 17,500
Water Compact Pickup $- $- $- $35,000 $ - $ 35,000
Water Distributions Medium Duty Truck $ 180,000 $- $- $ - $ - $ 180,000
Water Hybrid Sedan $- $- $- $35,000 $ - $ 35,000
Water Trailer $- $- $- $ 7,500 $ - $ 7,500
Fredericks Paving $- $- $- $300,000 $ - $ 300,000
IT Replacement $ 46,935 $ 11,875 $ 10,378 $13,753 $ - $ 82,941
City SAN $- $- $- $ 8,146 $ - $ 8,146
Fire Radio Receive Site at Fire Station #4 $- $4,000 $- $ - $ - $ 4,000
Firewall Replacement $ 11,864 $- $- $ - $ - $ 11,864
Network Security Upgrade $9,126 $- $- $ - $ - $ 9,126
Network Switching Infrastructure Equipment $3,090 $- $- $ - $ - $ 3,090
Uninterruptible Power Supplies $- $- $2,503 $ - $ - $ 2,503
Virtual Private Network Replace $8,063 $- $- $ - $ - $ 8,063
VMware Infrastructure Upgrade $ 14,792 $7,875 $7,875 $ - $ - $ 30,542
Wireless System Citywide $- $- $- $ 5,607 $ - $ 5,607
Major Facility Maintenance $- $- $- $ 2,500 $10,000 $ 12,500
879 Morro - Roof $- $- $- $ 2,500 $10,000 $ 12,500
Mid-Higuera Bypass $- $ 25,000 $- $ - $ - $ 25,000 347Packet Page 366
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Reservoir Maintenance $1,200,000 $ 275,000 $- $ 6,550,000 $ 7,300,000 $ 15,325,000
Package Thickener and Reservoir 2 Covers $ 150,000 $- $- $50,000 $ - $ 200,000
Reservoir 1 and 2 covers $ 250,000 $- $- $ - $ - $ 250,000
Reservoir 2 Replacement $ 800,000 $- $- $ 6,500,000 $ 7,300,000 $ 14,600,000
Wash water tank #1 $- $ 275,000 $- $ - $ - $ 275,000
Groundwater Basin Management $ 150,000 $ 150,000 $ 150,000 $150,000 $150,000 $ 750,000
Trihalomethanes Removal $1,650,000 $- $- $ - $ - $ 1,650,000
Treatment Major Facilities Maintenance $ 327,000 $ 186,000 $ 194,000 $109,000 $109,000 $ 925,000
Air Compressor and Dryer Maintenance $ 36,000 $ 36,000 $ 36,000 $36,000 $36,000 $ 180,000
Chemical System Maintenance $ 30,000 $ 31,000 $ 33,000 $33,000 $33,000 $ 160,000
EIM Actuator Replacement-Filter Effluent Valves $ 54,000 $- $- $ - $ - $ 54,000
Ozone System Maintenance $ 113,000 $ 119,000 $ 125,000 $40,000 $40,000 $ 437,000
Sodium Hydroxide Storage Tank Replacement $ 94,000 $- $- $ - $ - $ 94,000
Trench Repairs $ 200,000 $ 200,000 $ 200,000 $200,000 $200,000 $ 1,000,000
Water Meters and Boxes $ 90,000 $ 90,000 $ 90,000 $90,000 $90,000 $ 450,000
Water Valve Cover Adjustments $ 50,000 $ 30,000 $ 30,000 $30,000 $30,000 $ 170,000
Waterline Replacements $ 790,000 $1,830,000 $3,030,000 $ 1,127,000 $ 1,507,000 $ 8,234,000
Bee Bee, Cuesta, Loomis $ 100,000 $1,650,000 $- $ - $ - $ 1,750,000
Craig, Christina, Jaycee $- $ 180,000 $1,980,000 $ - $ - $ 2,160,000
Patricia, Highland, La Entrada $- $- $- $127,000 $ 1,397,000 $ 1,524,000
Point Repair $ 690,000 $- $1,050,000 $ 1,000,000 $10,000 $ 700,000
Serrano Zone Consolidation $- $- $- $ - $100,000 $ 100,000
Grand Total $10,223,935 $11,787,875 $3,744,378 $ 8,707,253 $ 9,436,000 $ 43,899,441
348Packet Page 367
Project Number Project Name
1000052 Buchon / Santa Rosa Intersection Improvements
Project Classification Classification Description
CIP Project Function Community Safety
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.150,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 0.150,000.0.0.0.
Purpose and Need
Stormwater drainage crossing Santa Rosa Street at the intersection with Buchon Street is directed through an 8-inch metal pipe culvert which frequently
clogs with sediment and leaves, creating localized flooding and a safety hazard for vehicles and pedestrians entering the intersection. This project will
regrade the intersection and replace the culvert with a concrete cross gutter, including installation of 4 ADA compliance curb ramps. Waterline facilities
will be lowered to maintain mimimum coverage.
Capital Improvement Plan
349Packet Page 368
Project Number Project Name
91566 Water Treatment Plant Energy Efficiency
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 5,500,000.8,800,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 5,500,000.8,800,000.0.0.0.
Purpose and Need
The City’s Water Treatment Plant receives surface water from three reservoirs. One of the reservoirs, Nacimiento Lake, delivers water into the
treatment plant at such a high force that the water pressure needs to be lowered to a controllable level before it enters the plant. In effort to increase
the efficiency of the Water Treatment Plant, this energy efficiency project would install a hydropower turbine that would convert the energy in the high-
pressure water line into electricity. The electricity generated on-site would offset the treatment plant’s overall power demand while utilizing a more
environmentally sound electricity supply. Concurrently, the energy efficiency project will assess several projects already identified in the adopted 2015
Potable Water Master Plan such as: pump efficiencies within plant, the ozone disinfection system, water quality in storage tanks, distribution main inter-
ties between service zones, and settings of related controls needed for SCADA integration. The assessment will be completed in the study phase of the
energy efficiency project and will make recommendations to replace aging infrastructure in a holistic manner from the surface water source, to the
treatment plant, and within the distribution system.
Capital Improvement Plan
350Packet Page 369
Project Number Project Name
1000063 Water Distribution Fire Hydrants
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 40,000.40,000.40,000.40,000.40,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 40,000.40,000.40,000.40,000.40,000.
Purpose and Need
The project includes fire hydrant units, and hydrant appurtenances where water distribution staff needs to replace public fire hydrants that are
reported to be defective, leaking, or corroded. The objective of the project is to assess the condition of fire hydrants, and when applicable, replace
with new hydrants that meet current codes and standards for protection of public health and infrastructure. When a defective hydrant is reported,
water distribution staff will use best available technology to monitor the water service area (pressure zone) using leak detection equipment, sound
correlators, radio monitoring telemetry of water flows and pressures, and catalog the inspection assessment into a GIS database.
Capital Improvement Plan
351Packet Page 370
Project Number Project Name
1000047 Fleet Replacements - Annual Asset Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 3,570,000.3,255,000.1,021,000.1,043,000.987,500.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.646,000.585,500.550,000.
Local Revenue Measure 515,000.380,000.50,000.120,000.120,000.
Parking Fund 0.0.0.35,000.35,000.
Sewer Fund 0.0.40,000.207,500.180,000.
Water Fund 180,000.0.0.95,000.0.
Whale Rock Fund 0.0.35,000.0.102,500.
Grant - Bus Replacements 2,875,000.2,875,000.250,000.0.0.
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement Guidelines include
the evaluation of the following criteria: Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and
Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within
the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged
locally while meeting the end users’ operational needs. Fleet services utilizes renewable diesel in all general fleet diesel powered units needed for
operations.
Capital Improvement Plan
352Packet Page 371
Project Number Project Name
1000059 Fredericks Paving
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.0.300,000.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 0.0.0.300,000.0.
Purpose and Need
On March 12, 2017, a waterline rupture occurred on Fredericks Street. High pressure water combined with a steep incline resulted in damage to
approximately 7,100 square feet of pavement. An emergency project was implemented to repair the street and open it to traffic as quickly as
possible. To minimize cost and expedite the work, the repairs did not conform to City Standards and are anticipated to have a limited lifespan.
This project will replace the street pavement section to City Standards for 20 year pavement life.
Capital Improvement Plan
353Packet Page 372
Project Number Project Name
1000074 IT Replacements - Annual Asset Maintenance Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Information Technology
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 1,011,624 936,250 532,008 552,445 520,864
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 287,553 289,050 481,473 510,777 520,864
Local Revenue Measure 597,150 615,200 21,000 - -
Parking Fund 19,717 3,965 4,160 4,279 -
Sewer Fund 50,303 9,989 11,438 19,358 -
Transit Fund 5,915 4,455 1,201 3,157 -
Water Fund 46,935 11,875 10,378 13,753 -
Whale Rock Fund 4,051 1,716 2,358 1,121 -
Purpose and Need
This project replaces Information Technology Assets based upon equipment lifespan, condition, and organizational needs.
Capital Improvement Plan
354Packet Page 373
Project Number Project Name
1000075 Major Facilities Maintenance - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Public Facility
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 516,210.524,243.532,727.546,532.572,226.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 125,290.149,000.507,000.475,200.527,000.
Local Revenue Measure 390,920.375,243.25,727.66,332.25,226.
Sewer Fund 0.0.0.2,500.10,000.
Water Fund 0.0.0.2,500.10,000.
Purpose and Need
This funding provides for capital maintenance of facilities that will reduce unplanned repair costs and optimize energy use by providing planned
equipment replacements and building shell sealing. Benefit of proper infrastructure maintenance reduce the cost of major repairs, increase energy
efficiency, reduce the total lifecycle cost of ownership of a facility, and ensure the facilities remain in operable condition.
Capital Improvement Plan
355Packet Page 374
Project Number Project Name
90649 Mid-Higuera Bypass
Project Classification Classification Description
CIP Project Function Community Safety
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.25,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 0.25,000.0.0.0.
Purpose and Need
The Mid-Higuera Bypass Project will increase the flood carrying capacity of the San Luis Obispo Creek between the Marsh Street Bridge and Madonna
Road Bridge. The flood protection measures are accomplished through sediment removal within the creek, creation of overflow return graded areas
within Mathews Park, removal of a "pinch-point" within the creek segment, creation of flood bypass channels, graded benches for increased creek
capacity, and replacement of the Bianchi Lane Bridge. The bridge replacement will also include relocating existing utilities, including water services to
the Madonna Property on the west side of the creek.
Capital Improvement Plan
356Packet Page 375
Project Number Project Name
1000034 Reservoir Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 400,000.275,000.0.50,000.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 400,000.275,000.0.50,000.0.
Purpose and Need
Maintenance of the facilities and equipment at the Water Treatment Plant is necessary in order to prolong the useful life of the facilities and ensure
staff’s ability to operate the plant and treat water to State and Federal standards. The ongoing maintenance includes recoating of the wash water tanks
that provide water to clean treatment filters. In 2012, a consultant was hired to inspect the interior and exterior of the tanks and package thickener unit.
A written assessment report was completed for each tank and thickener unit with observations, recommendations, and preliminary cost estimates.
Following the inspection of the tanks, staff worked with the consultant to assign a priority ranking to each capital project. The conditions of the tanks
that need to be addressed are: 1) Wash Water Tank No. 1 and 2 which is experiencing excessive corrosion on the inner roof area. In order to prevent the
tank structure from deteriorating and prolong the tank lifespan, the report recommends new interior and exterior coatings, and safety improvements to
the structural members of the roof. 2) Reservoir 1 and 2 require maintenance to the floating cover and ancillary equipment. 3)Package Thickener Unit
and Edna Tank are experiencing corrosion on the interior surfaces, and a new interior and exterior coating is recommended to prevent the corrosion
from spreading into the structural members. In general, re-coating projects are intended to be a preventative maintenance to prolong the life span of
the equipment, and avoid costly repairs to the structural components.
Capital Improvement Plan
357Packet Page 376
Project Number Project Name
91368 Reservoir No 2 Replacement
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 800,000.0.0.6,500,000.7,300,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 800,000.0.0.6,500,000.7,300,000.
Purpose and Need
The City currently operates two potable reservoirs (#1 and #2) that are estimated to be 60 years old. Reservoir #2 is a 7.44 million gallon (MG)
reservoir equipped with floating covers that had previously been identified to be replaced in 2015. This reservoir supplies about half of the City’s
potable water needs. Because the reservoir is one big basin, the entire storage volume must be taken out-of-service for reservoir maintenance. The
recently completed water distribution system hydraulic modeling identified opportunities to consolidate water distribution zones to improve
operations, reduce pumping needs, eliminate tanks and pump stations that would otherwise require replacement, improve fire flow, and improve
available fire storage. Replacement of Reservoir #2 will include construction of two new 2.5 MG above-ground tanks at the existing reservoir site.
This will provide critical redundancy and allow for tank maintenance without service interruption. It will also be designed to increase water mixing in
the reservoir, which will in turn lessen the overall age of water. Older water age contributes to disinfection by-products, a regulated substance which
may be harmful to human health. The study phase will research constructability and identify project components such as whether electrical
upgrades are necessary to the transfer pump station to ensure system reliability during construction. (This project will include a loan from the State
Revolving Fund)
Capital Improvement Plan
358Packet Page 377
Project Number Project Name
1000064 Groundwater Basin Management
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 150,000.150,000.150,000.150,000.150,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 150,000.150,000.150,000.150,000.150,000.
Purpose and Need
In June of 2017, the City of San Luis Obispo formed a Groundwater Sustainability Agency (GSA) for management of the medium priority San Luis
Obispo Valley Groundwater Basin (SLO Basin) in accordance with the Sustainable Groundwater Management Act (SGMA). This project will provide
financial resources to collaborate with GSA stakeholders to effectively manage the groundwater basin in the city, which may include preparation of
research studies, field investigations, legal documents, grant applications, and regional participation in the development of a groundwater
sustainability plan.
Capital Improvement Plan
359Packet Page 378
Project Number Project Name
1000044 Water TTHM Byproduct Reduction Project
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 1,650,000.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 1,650,000.0.0.0.0.
Purpose and Need
The project will study, design, and construct infrastructure to reduce Total Trihalomethane (TTHM) formations at the City's Water Treatment Plant,
and Edna Tank, using active and passive aeration systems. The objectives of the proposed capital improvements are: protect public health by
improving potable water quality given the circumstance of source water variations from all three reservoirs, implement energy efficiency equipment
to minimize operation and maintenance costs to a manageable level, and meet regulatory requirements of the plant and distribution system.
Capital Improvement Plan
360Packet Page 379
Project Number Project Name
99653 WTP Major Equipment Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 327,000.186,000.194,000.109,000.109,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 327,000.186,000.194,000.109,000.109,000.
Purpose and Need
The City’s Water Treatment Plant was originally constructed in 1961. In 1995, a significant upgrade to the plant was completed to meet changing
water quality requirements. In April of 2008, another major upgrade project was completed that replaced older equipment, added additional
treated water storage, and enhanced treatment processes. The ongoing maintenance of the facilities and equipment at the Water Treatment
Plant is necessary in order to prolong the useful life of the facilities and ensure staff’s ability to operate the plant and treat water to State and
Federal standards. (Note – There could be cost savings if Ozone and Air Prep Systems are replaced as part of the proposed Water Treatment
Plant Energy Efficiency Project).
Capital Improvement Plan
361Packet Page 380
Project Number Project Name
91147 Water Utility Trench Repair
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 200,000.200,000.200,000.200,000.200,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 200,000.200,000.200,000.200,000.200,000.
Purpose and Need
The project includes repairs to paved areas by Job Order Contract (JOC) where water distribution staff needs to remove, or repair service
connections within the public water distribution system. The objective of the project is to remove city owned polybutylene service
connections, cast iron fittings, deteriorated water pipes, and to efficiently complete paving operations within the roadway.
Capital Improvement Plan
362Packet Page 381
Project Number Project Name
1000062 Water Distribution Meters and Boxes
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 180,000.180,000.180,000.180,000.180,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 90,000.90,000.90,000.90,000.90,000.
Water Fund 90,000.90,000.90,000.90,000.90,000.
Purpose and Need
The project includes materials for water meters, meter appurtenances, and meter boxes where water distribution staff needs to remove, or repair
public water meters within the distribution system that are reported to be defective. The objective of the project is to increase accuracy and reliability
of public water meters, and efficiently manage all water resources in a cost-effective manner. When leaks are suspected, water distribution staff will
use best available technology to monitor the water service area (pressure zone) using: leak detection equipment, sound correlators, radio monitoring
telemetry of water flows around a pressure zone, and pilot tests by the water distribution staff for a temporary district metering area.
Capital Improvement Plan
363Packet Page 382
Project Number Project Name
1000066 Bee Bee, Cuesta, Loomis Improvements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 100,000.1,650,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 100,000.1,650,000.0.0.0.
Purpose and Need
The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two reservoirs,
five hydro-pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in size from four
inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced water main breaks, and is ranked as
a high priority for replacement in the water masterplan. The objective of the project is to replace asphalt cement or cast-iron pipe with pipe meeting new
standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against variations in pressure and flows.
Capital Improvement Plan
364Packet Page 383
Project Number Project Name
1000067 Craig, Christina, Jaycee Improvements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.180,000.1,980,000.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 0.180,000.1,980,000.0.0.
Purpose and Need
The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two
reservoirs, five hydro-pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in
size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced water main
breaks, and is ranked as a high priority for replacement in the water masterplan. The objective of the project is to replace asphalt cement or cast-iron
pipe with pipe meeting new standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against
variations in pressure and flows.
Capital Improvement Plan
365Packet Page 384
Project Number Project Name
1000068 Patricia, Highland, La Entrada Improvements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.0.127,000.1,397,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 0.0.0.127,000.1,397,000.
Purpose and Need
The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two
reservoirs, five hydro-pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in
size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced water main
breaks, and is ranked as a high priority for replacement in the water masterplan. The objective of the project is to replace asphalt cement or cast-iron
pipe with pipe meeting new standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against
variations in pressure and flows.
Capital Improvement Plan
366Packet Page 385
Project Number Project Name
1000065 Water Distribution Point Repairs
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 690,000.1,000,000.1,050,000.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 690,000.1,000,000.1,050,000.0.0.
Purpose and Need
Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program for reliable water distribution and fire
protection. The program’s point repair schedule will address existing deficiencies, and the potential for near-term failure according to priority. The
objective of the project is to explore opportunities to consolidate water distribution service areas (pressure zones), and construct new pipe
interconnections between pressure zones to simplify operations, improve water reuse operations, reduce pumping needs, and eliminate pump
stations or tanks that would otherwise require replacement. The project efforts may include engineering reports, updates to the computer hydraulic
model, construction plans for point repairs, construction management services, tank re-coatings, pump maintenance, updates to construction water
filling stations, materials for point repairs, grant applications, and field testing of water distribution infrastructure. The five-year program has
identified the following potential projects: 2019-20 Point repairs within High Pressure Zone and at construction water filling stations; 2019-20 Water
Reuse engineering reports and automation improvements; 2021-22 Point repairs in the city’s northern zones and tanks; 2021-22 Hydraulic model
updates; 2022-23 Point repairs in the city’s eastern zones and tanks; 2023-24 Maintenance to recycled water booster station and disinfection
system.
Capital Improvement Plan
367Packet Page 386
Project Number Project Name
1000086 Serrano Zone Consolidation
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Community Improvement
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.0.0.100,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Water Fund 0.0.0.0.100,000.
Purpose and Need
The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two
reservoirs, five hydro-pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters
ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced
water main breaks, and is ranked as a high priority for replacement in the water masterplan. The objective of the project is to replace asphalt
cement or cast-iron pipe with pipe meeting new standards by the American Water Works Association (AWWA) to provide resiliency in the
distribution network against variations in pressure and flows. The objective of this project is to perform a study on how to consolidate Serrano
Zone, which is a small pressure zone, into a zone that is easier to operate and maintain.
Capital Improvement Plan
368Packet Page 387
Whale Rock
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $ 99,051 $ 236,716 $ 57,358 $21,121 $122,500 $ 536,746
Asset Replacement $ - $ 100,000 $ 100,000 $ - $40,000 $ 240,000
Grand Total $ 99,051 $ 336,716 $ 157,358 $21,121 $162,500 $ 776,746
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 5 Year Total
Fleet Replacement $ - $- $ 35,000 $ - $102,500 $ 137,500
Whale Rock 1/2 ton Truck $ - $- $ 35,000 $ - $ - $ 35,000
Whale Rock Boat $ - $- $- $ - $40,000 $ 40,000
Whale Rock Trailer $ - $- $- $ - $ 7,500 $ 7,500
Whale Rock Utility Tractor $ - $- $- $ - $55,000 $ 55,000
IT Replacement $ 4,051 $1,716 $2,358 $ 1,121 $ - $ 9,246
Fire Radio Receive Site at Fire Station #4 $ - $1,000 $- $ - $ - $ 1,000
Firewall Replacement $ 1,079 $- $- $ - $ - $ 1,079
Network Security Upgrade $830 $- $- $ - $ - $830
Network Switching Infrastructure Equipment $64 $- $- $ - $ - $ 64
Uninterruptible Power Supplies $ - $- $1,642 $ - $ - $ 1,642
Virtual Private Network Replace $733 $- $- $ - $ - $733
VMware Infrastructure Upgrade $ 1,345 $ 716 $ 716 $ - $ - $ 2,777
Wireless System Citywide $ - $- $- $ 1,121 $ - $ 1,121
Whale Rock Pipeline Reliability Assessment $ - $ 100,000 $ 100,000 $ - $40,000 $ 240,000
Whale Rock Reservoir - Major Facility
Maintenance $ 95,000 $ 235,000 $ 20,000 $20,000 $20,000 $ 390,000
Grand Total $ 99,051 $ 336,716 $ 157,358 $21,121 $162,500 $ 776,746
369Packet Page 388
Project Number Project Name
1000047 Fleet Replacements - Annual Asset Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 3,570,000.3,255,000.1,021,000.1,043,000.987,500.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.646,000.585,500.550,000.
Local Revenue Measure 515,000.380,000.50,000.120,000.120,000.
Parking Fund 0.0.0.35,000.35,000.
Sewer Fund 0.0.40,000.207,500.180,000.
Water Fund 180,000.0.0.95,000.0.
Whale Rock Fund 0.0.35,000.0.102,500.
Grant - Bus Replacements 2,875,000.2,875,000.250,000.0.0.
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement Guidelines include
the evaluation of the following criteria: Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and
Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within
the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged
locally while meeting the end users’ operational needs. Fleet services utilizes renewable diesel in all general fleet diesel powered units needed for
operations.
Capital Improvement Plan
370Packet Page 389
Project Number Project Name
1000074 IT Replacements - Annual Asset Maintenance Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Information Technology
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 1,011,624 936,250 532,008 552,445 520,864
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 287,553 289,050 481,473 510,777 520,864
Local Revenue Measure 597,150 615,200 21,000 - -
Parking Fund 19,717 3,965 4,160 4,279 -
Sewer Fund 50,303 9,989 11,438 19,358 -
Transit Fund 5,915 4,455 1,201 3,157 -
Water Fund 46,935 11,875 10,378 13,753 -
Whale Rock Fund 4,051 1,716 2,358 1,121 -
Purpose and Need
This project replaces Information Technology Assets based upon equipment lifespan, condition, and organizational needs.
Capital Improvement Plan
371Packet Page 390
Project Number Project Name
91617 Whale Rock Pipe Assessment
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type Annual Asset Management
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.100,000.100,000.0.40,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Whale Rock Fund 0.100,000.100,000.0.40,000.
Purpose and Need
The 17.6 miles of pipeline conduit that transport water from the Whale Rock Reservoir (WRR) to the City of San Luis Obispo, Cal Poly, and California
Men’s Colony is 57 years old. Given the aging infrastructure, an assessment of the pipeline’s condition has been completed to properly schedule repairs
or replacement projects. Understanding the condition of the WRR pipeline will assist in planning for long term pipeline reliability and associated
maintenance needs, minimizing pipeline failures and associated disruptions, cost, and water waste. The following scheduled repairs will include point
repairs or replacement of pipe segments that have experienced corrosion or have failed the structural integrity assessment.
Capital Improvement Plan
372Packet Page 391
Project Number Project Name
91335 Whale Rock Major Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type Annual Asset Management
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 95,000.235,000.20,000.20,000.20,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Whale Rock Fund 95,000.235,000.20,000.20,000.20,000.
Purpose and Need
The Whale Rock Reservoir was originally constructed in 1961. In 2018, a spillway assessment was completed to meet DSOD reporting requirements.
On May of 2019, DSOD received the spillway assessment, and the recommended maintenance schedule. The ongoing maintenance of the facilities and
equipment at the Whale Rock Reservoir are necessary to prolong the useful life of the facilities and ensure staff’s ability to operate the dam and deliver
water to the City.
Capital Improvement Plan
373Packet Page 392
Sewer Fund
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $ 875,303 $2,675,989 $3,977,438 $ 4,559,358 $ 1,405,000 $ 13,493,088
Asset Replacement $64,590,573 $43,099,819 $15,920,563 $456,625 $ - $ 124,067,580
New Asset $ 180,000 $- $- $ - $ - $ 180,000
Grand Total $65,645,876 $45,775,808 $19,898,001 $ 5,015,983 $ 1,405,000 $ 137,740,668
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Fleet Replacement $- $- $ 40,000 $207,500 $180,000 $ 427,500
Sewer 1/2 ton Pickup $- $- $- $35,000 $ - $ 35,000
Sewer Collections Forklift $- $- $ 40,000 $ - $ - $ 40,000
Sewer Hybrid Sedan $- $- $- $35,000 $ - $ 35,000
Sewer Hydrocleaner $- $- $- $120,000 $120,000 $ 240,000
Sewer Portable Pump $- $- $- $ - $60,000 $ 60,000
Utilities Hybrid Sedan $- $- $- $17,500 $ - $ 17,500
Inflow/Infiltration Reduction $ 200,000 $ 200,000 $ 200,000 $200,000 $200,000 $ 1,000,000
Infrastructure Renewal $- $- $- $280,000 $100,000 $ 380,000
IT Replacement $ 50,303 $9,989 $ 11,438 $19,358 $ - $ 91,088
City SAN $- $- $- $ 8,146 $ - $ 8,146
Fire Radio Receive Site at Fire Sta. 4 $- $1,875 $- $ - $ - $ 1,875
Firewall Replacement $ 12,223 $- $- $ - $ - $ 12,223
Network Security Upgrade $9,403 $- $- $ - $ - $ 9,403
Network Switching Infrastructure $5,129 $- $- $ - $ - $ 5,129
Uninterruptible Power Supplies $- $- $3,324 $ - $ - $ 3,324
Virtual Private Network Replace $8,307 $- $- $ - $ - $ 8,307
VMware Infrastructure Upgrade $ 15,241 $8,114 $8,114 $ - $ - $ 31,469
Wireless System Citywide $- $- $- $11,212 $ - $ 11,212
Major Facility Maintenance $- $- $- $ 2,500 $10,000 $ 12,500
879 Morro - Roof $- $- $- $ 2,500 $10,000 $ 12,500
Sewer Manhole Cover Adjustments $ 30,000 $ 25,000 $ 25,000 $25,000 $25,000 $ 130,000
Telemetry Upgrades - Sewer $ 280,000 $- $- $30,000 $ - $ 310,000 374Packet Page 393
HachWims $ 30,000 $- $- $ - $ - $ 30,000
iFix Replacement $ 250,000 $- $- $ - $ - $ 250,000
MP2 Replacement $- $- $- $30,000 $ - $ 30,000
Trench Repairs $ 25,000 $ 25,000 $ 25,000 $25,000 $25,000 $ 125,000
Wastewater Collections System
Improvements $ 280,000 $1,326,000 $1,411,000 $ 1,485,000 $275,000 $ 4,777,000
Foothill Sewer - Trench / Pipe Burst $ 170,000 $- $- $ - $ - $ 170,000
Foothill Sewer Siphon $- $- $- $ - $200,000 $ 200,000
Johnson, Buchon Trench / Pipe Burst $- $- $ 135,000 $ 1,485,000 $ - $ 1,620,000
Serrano, Bressi, Trench / Pipe Burst $- $- $- $ - $75,000 $ 75,000
Verde, Luneta, Trench / Pipe Burst $- $ 116,000 $1,276,000 $ - $ - $ 1,392,000
Westmont, Cerro Romaldo Trench /
Pipe Burst $ 110,000 $1,210,000 $- $ - $ - $ 1,320,000
Wastewater Lift Station Rehabilitation $ 180,000 $ 700,000 $2,160,000 $ 2,050,000 $100,000 $ 5,190,000
Airport Lift Station $- $- $1,980,000 $ - $ - $ 1,980,000
Calle Joaquin Lift Station $- $ 700,000 $- $ - $ - $ 700,000
Foothill Lift Station $- $- $ 180,000 $ 1,980,000 $ - $ 2,160,000
Silver City Lift Station $- $- $- $70,000 $100,000 $ 170,000
New Buckley Lift Station $ 180,000 $- $- $ - $ - $ 180,000
Water Meters and Boxes $ 90,000 $ 90,000 $ 90,000 $90,000 $90,000 $ 450,000
WRRF Major Maintenance $ 200,000 $ 300,000 $ 15,000 $175,000 $400,000 $ 1,090,000
Coating Maintenance $- $- $ 15,000 $ - $ - $ 15,000
Digester Cleaning No.1 , 2 and 3 $ 200,000 $ 300,000 $- $ - $ - $ 500,000
Headworks Grit Pump $- $- $- $175,000 $ - $ 175,000
Screenings Washer Auger $- $- $- $ - $350,000 $ 350,000
UV Bulb Replacement $- $- $- $ - $50,000 $ 50,000
WRRF Upgrade $64,310,573 $43,099,819 $15,920,563 $426,625 $ - $123,757,580
Construction $59,459,098 $38,248,344 $11,069,088 $22,335 $ - $108,798,865
Construction Management $3,088,281 $3,088,281 $3,088,281 $257,357 $ - $ 9,522,200
Office Engineering $1,235,313 $1,235,313 $1,235,313 $102,943 $ - $ 3,808,882
Program Management $ 527,881 $ 527,881 $ 527,881 $43,990 $ - $ 1,627,633
Grand Total $65,645,876 $45,775,808 $19,898,001 $ 5,015,983 $ 1,405,000 $137,740,668 375Packet Page 394
Project Number Project Name
1000047 Fleet Replacements - Annual Asset Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 3,570,000.3,255,000.1,021,000.1,043,000.987,500.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.646,000.585,500.550,000.
Local Revenue Measure 515,000.380,000.50,000.120,000.120,000.
Parking Fund 0.0.0.35,000.35,000.
Sewer Fund 0.0.40,000.207,500.180,000.
Water Fund 180,000.0.0.95,000.0.
Whale Rock Fund 0.0.35,000.0.102,500.
Grant - Bus Replacements 2,875,000.2,875,000.250,000.0.0.
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement Guidelines include
the evaluation of the following criteria: Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and
Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within
the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged
locally while meeting the end users’ operational needs. Fleet services utilizes renewable diesel in all general fleet diesel powered units needed for
operations.
Capital Improvement Plan
376Packet Page 395
Project Number Project Name
91739 Sewer Inflow and Infiltration Reduction
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 200,000.200,000.200,000.200,000.200,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 200,000.200,000.200,000.200,000.200,000.
Purpose and Need
Replacement of wastewater collection pipes, and related infrastructure is an ongoing program for a reliable sanitary sewer collection system. The program’s
inflow and infiltration program will conduct pipe integrity tests, video inspections of public sewers, smoke testing of service areas, and schedule point repairs
to address existing deficiencies, and the potential for near-term failure according to priority. The objective of the project is to explore opportunities to
consolidate sewer collection systems that may run parallel along roadways, and construct new sewer lateral interconnections that can simplify maintenance
operations, reduce illegal stormwater connections into the sewer, and rehabilitate fractures in clay pipes that may be experiencing groundwater infiltration
due to soil settlements or root instructions; a decrease on infiltration flows will in turn lower energy costs needed to treat sewer volumes at the wastewater
treatment plant. The project efforts may include engineering reports, construction plans for point repairs, construction management services, sewer
manhole re-coatings, sewer flow monitoring studies, and field testing of wastewater piping infrastructure.
Capital Improvement Plan
377Packet Page 396
Project Number Project Name
91736 Infrastructure Renewal
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 52,598.0.0.280,000.100,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 52,598.0.0.280,000.100,000.
Purpose and Need
The purpose of this project is to update the sewer hydraulic model’s wastewater pipe capacity projections using information from new
developments added to the City, and compare the projections against flow monitoring data during dry and rainy seasons. The information will be
used to schedule the priorities for new sewer pipe replacement projects or identify where inflow or infiltration may be restricting the capacity of the
wastewater collection system. This study will be particularly important for proper planning of new infill housing developments, hospital expansions,
and possible student housing projects adjacent to the university.
Capital Improvement Plan
378Packet Page 397
Project Number Project Name
1000074 IT Replacements - Annual Asset Maintenance Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Information Technology
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 1,011,624 936,250 532,008 552,445 520,864
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 287,553 289,050 481,473 510,777 520,864
Local Revenue Measure 597,150 615,200 21,000 - -
Parking Fund 19,717 3,965 4,160 4,279 -
Sewer Fund 50,303 9,989 11,438 19,358 -
Transit Fund 5,915 4,455 1,201 3,157 -
Water Fund 46,935 11,875 10,378 13,753 -
Whale Rock Fund 4,051 1,716 2,358 1,121 -
Purpose and Need
This project replaces Information Technology Assets based upon equipment lifespan, condition, and organizational needs.
Capital Improvement Plan
379Packet Page 398
Project Number Project Name
1000075 Major Facilities Maintenance - Annual Asset Maintenance
Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Public Facility
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 516,210.524,243.532,727.546,532.572,226.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 125,290.149,000.507,000.475,200.527,000.
Local Revenue Measure 390,920.375,243.25,727.66,332.25,226.
Sewer Fund 0.0.0.2,500.10,000.
Water Fund 0.0.0.2,500.10,000.
Purpose and Need
This funding provides for capital maintenance of facilities that will reduce unplanned repair costs and optimize energy use by providing planned
equipment replacements and building shell sealing. Benefit of proper infrastructure maintenance reduce the cost of major repairs, increase energy
efficiency, reduce the total lifecycle cost of ownership of a facility, and ensure the facilities remain in operable condition.
Capital Improvement Plan
380Packet Page 399
Project Number Project Name
1000084 Sewer Manhole Cover Adjustments
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 30,000.25,000.25,000.25,000.25,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 30,000.25,000.25,000.25,000.25,000.
Purpose and Need
The project includes raising or lowering sewer manhole water covers when road pavement operations are performed by the City within the public right of
way. The objective of the project is to protect existing sewer manholes frames and pipes from damage by paving machinery, and to efficiently complete
paving operations within the roadway.
Capital Improvement Plan
381Packet Page 400
Project Number Project Name
91370 Wastewater Collection Telemetry Improvements
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 280,000.0.0.30,000.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 280,000.0.0.30,000.0.
Purpose and Need
The wastewater collection system’s telemetry controllers and radios are unreliable and becoming obsolete. Proactively maintaining hardware and
equipment is critical task of the wastewater operations to ensure year-round functionality for the operations of sewer lift stations during normal operations,
and emergency conditions. The upgrades to the telemetry system will provide new hardware, and software system that are easier to program and maintain.
Capital Improvement Plan
382Packet Page 401
Project Number Project Name
91740 Sewer Utility Trench Repair
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Cost Budget 25,000.25,000.25,000.25,000.25,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 25,000.25,000.25,000.25,000.25,000.
Purpose and Need
Maintenance Materials: The project includes repairs to paved areas by Job Order Contract (JOC) where wastewater collection staff needs to remove,
or repair sewer connections within the public sewer system. The objective of the project is to perform point repairs on city owned sewer pipes that
have experienced root intrusions, corrosion of pipes or fittings, and to efficiently complete paving operations within the roadway.
Capital Improvement Plan
383Packet Page 402
Project Number Project Name
91640 Foothill Pipe Burst
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 170,000.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 170,000.0.0.0.0.
Purpose and Need
Pipe burst to replace sewer pipeline that has been identified through Cityworks as requiring replacement on Foothill/Rougeot easement. The
purpose of this project is to remove sewer mains from backyard easements that are difficult to clean and maintain.
Capital Improvement Plan
384Packet Page 403
Project Number Project Name
1000094 Foothill Sewer Siphon
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.0.0.200,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 0.0.0.0.200,000.
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are over 100
years old, and are undersized. Maintenance requirements increase dramatically as pipeline and equipment approach the end of their useful life. Pipeline
and operational equipment require ongoing maintenance and condition assessment to prioritize periodic replacement, ensure proper function, and
prolong service life. The objective of this project is to replace sewer pipes in areas that have shown high inflow or infiltration flows based on recorded
sewer spills, and high recorded flow rates during major storm events.
Capital Improvement Plan
385Packet Page 404
Project Number Project Name
1000092 Johnson, Buchon, Morro Pipe Bursting
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.135,000.1,485,000.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 0.0.135,000.1,485,000.0.
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are over 100
years old, and are undersized. Maintenance requirements increase dramatically as pipeline and equipment approach the end of their useful life. Pipeline
and operational equipment require ongoing maintenance and condition assessment to prioritize periodic replacement, ensure proper function, and
prolong service life. The objective of this project is to replace sewer pipes in areas that have shown high inflow or infiltration flows based on recorded
sewer spills, and high recorded flow rates during major storm events.
Capital Improvement Plan
386Packet Page 405
Project Number Project Name
1000093 Serrano, Bressi, Penman Pipe Bursting
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.0.0.75,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 0.0.0.0.75,000.
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are
over 100 years old, and are undersized. Maintenance requirements increase dramatically as pipeline and equipment approach the end of their
useful life. Pipeline and operational equipment require ongoing maintenance and condition assessment to prioritize periodic replacement,
ensure proper function, and prolong service life. The objective of this project is to replace sewer pipes in areas that have shown high inflow or
infiltration flows based on recorded sewer spills, and high recorded flow rates during major storm events.
Capital Improvement Plan
387Packet Page 406
Project Number Project Name
1000091 Verde, Luneta, Ramona Pipe Bursting
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.116,000.1,276,000.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 0.116,000.1,276,000.0.0.
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are
over 100 years old, and are undersized. Maintenance requirements increase dramatically as pipeline and equipment approach the end of their
useful life. Pipeline and operational equipment require ongoing maintenance and condition assessment to prioritize periodic replacement,
ensure proper function, and prolong service life. The objective of this project is to replace sewer pipes in areas that have shown high inflow or
infiltration flows based on recorded sewer spills, and high recorded flow rates during major storm events.
Capital Improvement Plan
388Packet Page 407
Project Number Project Name
1000090 Tassajara, Cerro Romauldo, Jeffrey, Westmont Pipe Bursting
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 110,000.1,210,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 110,000.1,210,000.0.0.0.
Purpose and Need
The City’s wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are over 100 years
old, and are undersized. Maintenance requirements increase dramatically as pipeline and equipment approach the end of their useful life. Pipeline and
operational equipment require ongoing maintenance and condition assessment to prioritize periodic replacement, ensure proper function, and prolong
service life. The objective of this project is to replace sewer pipes in areas that have shown high inflow or infiltration flows based on recorded sewer spills, and
high recorded flow rates during major storm events.
Capital Improvement Plan
389Packet Page 408
Project Number Project Name
91369 Sewer Lift Station Replacement - Airport
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.1,980,000.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 0.0.1,980,000.0.0.
Purpose and Need
The Airport Lift Station is located on Broad Street near the intersection of Fiero Lane. This station is a Smith and Loveless dry/wet well design. It
operates with two-240 gpm, 5 horse power pumps and 840 feet of existing eight-inch force main and was originally constructed by San Luis Obispo
County. The City took over its operation and maintenance in 2000. Due to age and poor structural condition and exterior corrosion the station is
operating beyond its life expectancy. The replacement lift station will be sited in order to accommodate future development of the Airport Area Specific
Plan and future annexations, which will include additional gravity sewers and a longer force main. It is recommended that the station be relocated
approximately 775 feet west of its current location at the end of Fiero Lane. Relocating the station would require an addition of 500 feet of gravity main
and 900 feet of additional force main and property acquisition.
Capital Improvement Plan
390Packet Page 409
Project Number Project Name
1000087 Sewer Lift Station – Calle Joaquin
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0 700,000 0 0 0
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 0 700,000 0 0 0
Purpose and Need
Calle Joaquin lift station was installed around 1968 and has been operating beyond its life expectancy due to proper maintenance and minor repairs.
Inspection reports have confirmed signs of accelerated deterioration causing the dry well to be structurally unsound. Because of its age and condition,
replacement of the lift station has been prioritized with the other necessary system components that include the force main, an exposed siphon in San
Luis Creek, and the gravity portion of the system under Highway 101. These replacements will ensure that all components function effectively as a system.
The design of the project is near completion, and will need additional funds for construction based on the current construction cost estimates. (Note – The
2019 Margarita lift station replacement appears to be under budget, which may reduce this project's forecasted appropriation for 2020)
Capital Improvement Plan
391Packet Page 410
Project Number Project Name
1000079 Foothill Sewer Lift Station
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.180,000.1,980,000.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 0.180,000.1,980,000.0.0.
Purpose and Need
The Foothill Lift Station is the oldest in the City’s wastewater collection system and is in a location with minimal access. This station is over 50 years old
and is operating beyond its life expectancy. The equipment was originally installed in 1962 to serve the Broad Street and Orcutt area, but was removed
and warehoused, then reconfigured and installed in its present location in 1986. Due to external corrosion the sump pump floor was repaired in 1995.
The existing force main is approximately 325 feet in length and is cast iron pipe. In 2013 the force main failed due to corrosion and pipe age. A pipeline
condition assessment has shown it should be replaced. Because of its age and condition, replacement of the lift station has been prioritized with the
other necessary system components. It is recommended that the station be relocated approximately 500 feet west of its current location to serve
future development. Relocating the station would require an addition of 500 feet of gravity and force main and property and easement acquisition.
(Note – the appropriation for this original project will be requested for construction of a higher priority sewer lift station at Calle Joaquin)
Capital Improvement Plan
392Packet Page 411
Project Number Project Name
1000082 Sewer Lift Station Replacement – Silver City
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.0.70,000.100,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 0.0.0.70,000.100,000.
Purpose and Need
The Silver City Lift Station is a Smith and Loveless dry/wet well design, and was put in to service in 1971. The existing six-inch asbestos concrete force
main pumps under San Luis Obispo Creek (it is encased under the creek) approximately 765 feet to a manhole upstream of the Laguna Lift Station. The
Silver City lift station operates with two 450 gpm, 18.5 horse power pumps. The station replacement will be located in the same current location
proximity. An additional property acquisition and easements will be required to relocate both the new lift station and force main. In addition to the
force main replacement it will require the pipe to be encased in the San Luis creek crossing. The replacement lift station will accommodate a portion of
the future development anticipated in the Margarita Area Specific Plan.
Capital Improvement Plan
393Packet Page 412
Project Number Project Name
1000083 Sewer Lift Station Replacement – New Buckley
Station
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 180,000.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 180,000.0.0.0.0.
Purpose and Need
he Buckley Lift Station is a new city asset within the Avila Ranch development that will serve the southwest portion of the Airport Specific Area. The
construction will include capacities for all phased construction of the Avila Ranch Development, and will have the ability to expand as future discharge
flows increase consistent with the Land Use and Circulation Element (LUCE). The lift station is partly funded by the developer and citywide sewer
impact fees in accordance with the 2017 Development Agreement and conditions of approval.
Capital Improvement Plan
394Packet Page 413
Project Number Project Name
1000062 Water Distribution Meters and Boxes
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 180,000.180,000.180,000.180,000.180,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 90,000.90,000.90,000.90,000.90,000.
Water Fund 90,000.90,000.90,000.90,000.90,000.
Purpose and Need
The project includes materials for water meters, meter appurtenances, and meter boxes where water distribution staff needs to remove, or repair
public water meters within the distribution system that are reported to be defective. The objective of the project is to increase accuracy and reliability
of public water meters, and efficiently manage all water resources in a cost-effective manner. When leaks are suspected, water distribution staff will
use best available technology to monitor the water service area (pressure zone) using: leak detection equipment, sound correlators, radio monitoring
telemetry of water flows around a pressure zone, and pilot tests by the water distribution staff for a temporary district metering area.
Capital Improvement Plan
395Packet Page 414
Project Number Project Name
1000077 WRRF Major Equipment Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 200,000.300,000.15,000.175,000.410,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 200,000.300,000.15,000.175,000.410,000.
Purpose and Need
This project includes maintenance of key components at the Water Resource Recovery Facility WRRF in order to ensure proper operation and prolong
the useful life of equipment and other facilities that are not included in the facility upgrade. The structures and equipment at the Water Resource
Recovery Facility (WRRF) range in age from five to over 75 years. As part of the continued operation of the WRRF, existing processes and equipment
require maintenance and periodic replacement to ensure proper function, prolong service life, and maintain high quality treatment processes.
Preventive maintenance is a key component to reducing equipment failure and reducing risk associated with regulatory discharge limit violations.
Construction and equipment replacement must occur in such a way as to not interfere with the City’s ability to continue to provide wastewater
treatment within a strict regulatory setting. Replacement of equipment and maintenance activities will be coordinated with the upcoming WRRF
upgrade project, which include maintenance to the digesters, pipe coatings, pump maintenance or replacement at headworks grit area, and
maintenance to the screening auger.
Capital Improvement Plan
396Packet Page 415
Project Number Project Name
91219 WRRF Facility Upgrade
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Community Priority None
Partnership Project No
Project Classification Public Facility
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 64,310,573.43,099,819.15,920,563.426,625.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Sewer Fund 64,310,573.43,099,819.15,920,563.426,625.0.
Purpose and Need
The City’s Water Resource Recovery Facility (WRRF) must be upgraded to comply with stricter discharge limits required by the Central Coast Water
Board (CCWB), to increase capacity to serve the City’s population at General Plan build out, and to replace existing aged facilities that have reached the
end of their service life. The draft 2015 WRRF Facilities Plan identifies the related upgrades and associated costs. Study of these improvements began in
2014-15, with design and environmental permitting beginning in 2015-16 and 2016- 17. Stricter discharge limits will require new treatment processes
as well as changes to current processes at the WRRF to remove nutrients and disinfection by-products prior to releasing environmental water to San
Luis Obispo Creek; these limits are required to meet the CCWB’s Basin Plan for inland waterbodies. The Regional Water Quality Control Board adopted
a revised National Pollutant Discharge Elimination System Permit with stricter discharge requirements that went into effect December 1, 2014 and
requires the City to meet these new standards by November 2019. The WRRF’s capacity will be increased from its current 5.1 million gallons per day
(MGD) to approximately 5.4 MGD to meet the projected growth for the next 20 years while several aged or obsolete processes will require upgrades or
removal. This project will also maximize recycled water production and include much needed upgrades to buildings and communication infrastructure
to assist in the optimal operation and maintenance of the facility. All aspects of the upgrade will consider a triple bottom line approach to ensure the
facility becomes a valuable community asset.
Capital Improvement Plan
397Packet Page 416
Parking Fund
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $69,717 $53,965 $54,160 $89,279 $85,000 $352,121
Asset Replacement $1,207,500 $1,165,000 $922,500 $922,500 $922,500 $5,140,000
New Asset $275,000 $28,895,000 $275,000 $275,000 $275,000 $29,995,000
Grand Total $1,552,217 $30,113,965 $1,251,660 $1,286,779 $1,282,500 $35,487,121
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
842 Palm Parking Structure Maintenance $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000
871 Marsh Street Structure Maintenance $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000
919 Palm Street Structure Maintenance $100,000 $100,000 $100,000 $100,000 $100,000 $500,000
Fleet Replacement $ - $ - $ - $35,000 $35,000 $70,000
Parking 1/2ton Pickup $ - $ - $ - $35,000 $ - $35,000
Parking Compact Pickup $ - $ - $ - $ - $35,000 $35,000
IT Replacement $19,717 $3,965 $4,160 $4,279 $ - $32,121
City SAN $ - $ - $ - $2,036 $ - $2,036
Fire Radio Receive Site at Fire Station #4 $ - $625 $ - $ - $ - $625
Firewall Replacement $5,033 $ - $ - $ - $ - $5,033
Network Security Upgrade $3,872 $ - $ - $ - $ - $3,872
Network Switching Infrastructure Equipment $1,116 $ - $ - $ - $ - $1,116
Uninterruptible Power Supplies $ - $ - $820 $ - $ - $820
Virtual Private Network Replace $3,420 $ - $ - $ - $ - $3,420
VMware Infrastructure Upgrade $6,276 $3,340 $3,340 $ - $ - $12,956
Wireless System Citywide $ - $ - $ - $2,243 $ - $2,243
Lighting Energy Efficiency Retrofits $ - $ - $ - $ - $ - $ -
842 Palm Street Parking Structure $ - $ - $ - $ - $ - $ -
871 Marsh Street Parking Structure $ - $ - $ - $ - $ - $ -
919 Palm Street Parking Structure $ - $ - $ - $ - $ - $ -
Managed Parking Expansion (meters, Residential
Permit Districts, Mobile Pay) $25,000 $25,000 $25,000 $25,000 $25,000 $125,000
Palm-Nipomo Parking Structure $ - $28,620,000 $ - $ - $ - $28,620,000 398Packet Page 417
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Parking Meter Replacements of Existing Credit
Card Meters $100,000 $100,000 $5,000 $5,000 $5,000 $215,000
Parking Meter Upgrades to Credit Card/Mobile Pay $157,500 $157,500 $10,000 $10,000 $10,000 $345,000
Parking Small Capital Miscellaneous CIP Projects $50,000 $50,000 $50,000 $50,000 $50,000 $250,000
Property Acquisition & Lease $250,000 $250,000 $250,000 $250,000 $250,000 $1,250,000
Telemetry Communications Upgrades-Wayfinding $50,000 $7,500 $7,500 $7,500 $7,500 $80,000
Grand Total $1,552,217 $30,113,965 $1,251,660 $1,286,779 $1,282,500 $35,487,121
399Packet Page 418
Project Number Project Name
1000049 842 Palm Parking Structure
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 400,000.400,000.400,000.400,000.400,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 400,000.400,000.400,000.400,000.400,000.
Purpose and Need
The City complete a Parking Structure Capital Asset Management Plan in 2018 that reviewed each parking structure to determine necessary improvement
projects needed to repair deficient facilities, improve aesthetics and extend the useful life of each structure. 842 Palm is the oldest parking structure in the
City and needs significant investment for rehabilitation and improvements. This project sets aside $400,000 per year starting in FY 2019-20 to begin the
major work of rehabilitating the garage. Potential projects in the two years of the financial plan potentially include, but are not limited to, improving vehicle
safety cabling on the upper floors, painting of interior, addressing concrete spalling and cracking and replacing inefficient lighting fixtures with energy
efficient LED technology.
Capital Improvement Plan
400Packet Page 419
Project Number Project Name
1000050 871 Marsh Street Parking
Structure Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 400,000.400,000.400,000.400,000.400,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 400,000.400,000.400,000.400,000.400,000.
Purpose and Need
The City completed a Parking Structure Capital Asset Management Plan in 2018 that reviewed each parking structure to determine necessary improvement
projects needed to repair deficient facilities, improve aesthetics and extend the useful life of each structure. 871 Marsh is the second oldest parking
structure in the City and needs significant investment for rehabilitation and improvements. This project sets aside $400,000 per year starting in FY 2019-20
to begin the major work of rehabilitating the garage. Potential projects in the two year Financial Plan potentially include, but are not limited to, painting of
interior walls and stairwells, painting and replacing fire sprinklers, addressing concrete spalling and cracking, improving drainage systems, and replacing
inefficient lighting fixtures with energy efficient LED technology.
Capital Improvement Plan
401Packet Page 420
Project Number Project Name
1000051 919 Palm Street Parking Structure Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 100,000.100,000.100,000.100,000.100,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 100,000.100,000.100,000.100,000.100,000.
Purpose and Need
The City completed a Parking Structure Capital Asset Management Plan in 2018 that reviewed each parking structure to determine necessary
improvement projects needed to repair deficient facilities, improve aesthetics and extend the useful life of each structure. 919 Palm is the newest
parking structure in the City but at 13 years old is beginning to show wear. This project sets aside $100,000 per year starting in FY 2019-20 to begin
the major work of maintaining the garage. Potential projects in the two-year Financial Plan resealing expansion joints and decks, repairing concrete
spalls, tighten loose barrier cables, sealing all windows, retrofit elevator doors and rehab automatic bollards.
Capital Improvement Plan
402Packet Page 421
Project Number Project Name
1000047 Fleet Replacements - Annual Asset Maintenance
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 3,570,000.3,255,000.1,021,000.1,043,000.987,500.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 0.0.646,000.585,500.550,000.
Local Revenue Measure 515,000.380,000.50,000.120,000.120,000.
Parking Fund 0.0.0.35,000.35,000.
Sewer Fund 0.0.40,000.207,500.180,000.
Water Fund 180,000.0.0.95,000.0.
Whale Rock Fund 0.0.35,000.0.102,500.
Grant - Bus Replacements 2,875,000.2,875,000.250,000.0.0.
Purpose and Need
This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelines. Revised Fleet Replacement Guidelines include
the evaluation of the following criteria: Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and
Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within
the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged
locally while meeting the end users’ operational needs. Fleet services utilizes renewable diesel in all general fleet diesel powered units needed for
operations.
Capital Improvement Plan
403Packet Page 422
Project Number Project Name
1000074 IT Replacements - Annual Asset Maintenance Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Information Technology
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 1,011,624 936,250 532,008 552,445 520,864
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 287,553 289,050 481,473 510,777 520,864
Local Revenue Measure 597,150 615,200 21,000 - -
Parking Fund 19,717 3,965 4,160 4,279 -
Sewer Fund 50,303 9,989 11,438 19,358 -
Transit Fund 5,915 4,455 1,201 3,157 -
Water Fund 46,935 11,875 10,378 13,753 -
Whale Rock Fund 4,051 1,716 2,358 1,121 -
Purpose and Need
This project replaces Information Technology Assets based upon equipment lifespan, condition, and organizational needs.
Capital Improvement Plan
404Packet Page 423
Project Number Project Name
1000060 Lighting Energy Efficiency Retrofits
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Maintenance
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 0.0.0.0.0.
Purpose and Need
This project replaces the existing interior lighting in the City’s parking structures with new energy efficient LED lighting. There is no direct cost to
the City for this lighting replacement. Project cost will be incorporated into the City’s existing energy billing. Decreased energy usage is estimated
to offset lighting retrofit costs with no net increase.
Capital Improvement Plan
405Packet Page 424
Project Number Project Name
1000054 Managed Parking Expansion (Residential Permit Districts, Mobile Pay)
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 25,000.25,000.25,000.25,000.25,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 25,000.25,000.25,000.25,000.25,000.
Purpose and Need
Sets aside $25,000 per year starting in FY 2019-20 to fund expansion of managed parking areas that may consist of Residential Permit District requests,
meter (or other paid) parking expansions in Downtown or near Cal Poly and other managed parking programs.
Capital Improvement Plan
406Packet Page 425
Project Number Project Name
90435 Palm-Nipomo Parking Structure
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 1,581,989.15 28,620,000.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 1,581,989.15 28,620,000.0.0.0.
The Palm Nipomo parking structure construction cost is estimated at $28.6 million in FY 20-21. A $8,600,000 contribution from working capital and
$20,000,000 proceeds from debt financing or bond issuance will be used to fund this amount. Final amounts will be determined as the project
construction documents move forward in the City process. These amounts will change based upon revised project estimates and final ratio of capital
outlay versus debt financing amounts. The project will require hiring of third party inspection and construction management teams to oversee
construction. The project will install up to 400 parking spaces, two elevators, electric vehicle charging stations, solar panels and other appurtenances to
the project.
Purpose and Need
Capital Improvement Plan
407Packet Page 426
Project Number Project Name
1000088 Parking Meter Replacements of Existing Credit Card Meters
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Transportation
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 100,000.100,000.5,000.5,000.5,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 100,000.100,000.5,000.5,000.5,000.
Purpose and Need
Invests $100,000 in both FY 2019-20 and FY 20-21 to begin upgrade/replacement of existing credit card capable meters that are now at the end of their
useful life. Existing failures of the credit card, coin validation and display modules are occurring more frequently due to the age of the meters and cumulative
use. Pricing of full replacement of meters with more modern technology has brought the replacement costs down to a price point that is comparative to
annualized individual component replacements such that a systematic replacement program is financially beneficial to the meter system.
Capital Improvement Plan
408Packet Page 427
Project Number Project Name
1000078 Parking Meter Upgrades to Credit Card/Mobile Pay
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Transportation
Project Type Asset Replacement
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 157,500.157,500.10,000.10,000.10,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 157,500.157,500.10,000.10,000.10,000.
Purpose and Need
Invests $157,000 in both FY 2019-20 and FY 20-21 to begin upgrade/replacement of older coin meters with credit card capable meters that accept
other forms of payment.
Capital Improvement Plan
409Packet Page 428
Project Number Project Name
1000080 Parking Small Capital Miscellaneous CIP Projects
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Transportation
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 50,000.50,000.50,000.50,000.50,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 50,000.50,000.50,000.50,000.50,000.
Purpose and Need
Funds $50,000 each year for small capital projects that include parking sign replacements and upgrades in Downtown and Residential Permit Districts,
Curb Painting and new parking restrictions, parking lot modifications including wheel stops, fencing improvements, pavement patching and other.
Capital Improvement Plan
410Packet Page 429
Project Number Project Name
1000081 Parking Acquisition & Lease
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority None
Partnership Project No
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 250,000.250,000.250,000.250,000.250,000.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 250,000.250,000.250,000.250,000.250,000.
Purpose and Need
Sets aside $250,000 per year starting in FY 2019-20 to accumulate funding for additional property parking lot acquisition for long term
demand needs. This amount will be available to help secure potential shared parking arrangements if developed as well as opportunities
to increase parking north of Santa Rosa as part of the upper Monterey special study area. Funding could be used to pay for annual lease
costs for the Midtown Parking Structure project currently being analyzed by the City and County of San Luis Obispo.
Capital Improvement Plan
411Packet Page 430
Project Number Project Name
1000089 Telemetry Communications Upgrades - Wayfinding
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Transportation
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 50,000.7,500.7,500.7,500.7,500.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Parking Fund 50,000.7,500.7,500.7,500.7,500.
Purpose and Need
Includes $50,000 in FY 2019-20 and $7,500 thereafter to investigate and install wayfinding technology for parking resources in Downtown and other
locations in the City. The project would look to install a minimum of one wayfinding sign (on Marsh or Santa Rosa) alerting the traveling public of
available occupancy spaces in the public parking structures.
Capital Improvement Plan
412Packet Page 431
Transit Fund
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset Maintenance $5,915 $4,455 $1,201 $ 3,157 $ - $ 14,728
Grand Total $5,915 $4,455 $1,201 $ 3,157 $ - $ 14,728
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 5 Year Total
IT Replacement $5,915 $4,455 $1,201 $ 3,157 $ - $ 14,728
City SAN $- $- $- $ 2,036 $ - $ 2,036
Fire Radio Receive Site at Fire Station #4 $- $3,500 $- $ - $ - $ 3,500
Firewall Replacement $1,438 $- $- $ - $ - $ 1,438
Network Security Upgrade $1,106 $- $- $ - $ - $ 1,106
Network Switching Infrastructure Equipment $ 601 $- $- $ - $ - $601
Uninterruptible Power Supplies $- $- $ 246 $ - $ - $246
Virtual Private Network Replace $ 977 $- $- $ - $ - $977
VMware Infrastructure Upgrade $1,793 $ 955 $ 955 $ - $ - $ 3,703
Wireless System Citywide $- $- $- $ 1,121 $ - $ 1,121
Solar Installations $- $- $- $ - $ - $-
Bus Yard $- $- $- $ - $ - $-
Grand Total $5,915 $4,455 $1,201 $ 3,157 $ - $ 14,728
413Packet Page 432
Project Number Project Name
1000074 IT Replacements - Annual Asset Maintenance Account
Project Classification Classification Description
CIP Project Function Infrastructure & Transportation
Community Priority Local Revenue Measure
Partnership Project No
Project Classification Information Technology
Project Type Annual Asset Maintenance
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Equipment 1,011,624 936,250 532,008 552,445 520,864
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Capital Outlay Fund 287,553 289,050 481,473 510,777 520,864
Local Revenue Measure 597,150 615,200 21,000 - -
Parking Fund 19,717 3,965 4,160 4,279 -
Sewer Fund 50,303 9,989 11,438 19,358 -
Transit Fund 5,915 4,455 1,201 3,157 -
Water Fund 46,935 11,875 10,378 13,753 -
Whale Rock Fund 4,051 1,716 2,358 1,121 -
Purpose and Need
This project replaces Information Technology Assets based upon equipment lifespan, condition, and organizational needs.
Capital Improvement Plan
414Packet Page 433
Project Number Project Name
1000025, 1000026, and
1000095
Solar Installation
Project Classification Classification Description
CIP Project Function Environmental Health & Open Space
Community Priority Major City Goal & Other Important Objectives
Partnership Project No
Project Classification Public Facility
Project Type New Asset
Cost Budget 2019-20 2020-21 2021-22 2022-23 2023-24
Contract Services 0.0.0.0.0.
Funding Source 2019-20 2020-21 2021-22 2022-23 2023-24
Transit Fund 0.0.0.0.0.
General Capital Outlay 0.0.0.0.0.
Purpose and Need
This project implements a Power Purchase Agreement for the procurement of solar power without capital expenditures. A third-party solar developer takes
on all responsibility to finance, design, construct, operate, and maintain the solar installation. The City receives and purchases energy at a contractually
specified rate from the developer and PG&E continues to provide electrical services to the site for any consumption that is not covered by the power
generated by the solar installation. This allows the City access to solar installations with no upfront capital costs and to realize an immediate financial
benefit by paying less for energy produced by the solar installation than what was being paid to PG&E. The planned installation sites are the Bus Yard, Swim
Center, and Fire Station 1.
Capital Improvement Plan
415Packet Page 434
REFERENCE MATERIAL
416 Packet Page 435
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Packet Page 436
PENSION OBLIGATION TRENDS
CalPERS Pension Obligations
Background
About CalPERS. Along with 3,000 other cities and local agencies, the City contracts with the California Public
Employees Retirement System (CalPERS) for its “defined benefit” retirement plan, which covers all regular
employees (and temporary employees when required by State law). In 2012, the City proactively negotiated a
lower second tier retirement benefit for employees hired after CalPERS contracts were amended. In addition, the
Public Employee Pension Reform Act (AB 340) became effective in January 2013 and created the third, and even
lower, tier retirement benefit. Under this program, employees who are considered new to the CalPERS retirement
program are enrolled as required by the new law. Currently, 52% of all employees are in the lower retirement
tiers.
Benefit Tiers
Employee Group Tier 1 Tier 2 Tier 3 - PEPRA
Sworn Public Safety 3% at age 50 Police – 2% at age 50
Fire – 3 % at age 55
2.7 % at age 57
Non-Sworn Employees 2.7% at age 55 2% at age 60 2% at age 62
CalPERS establishes the annual employer contribution rate that is charged against the City’s payroll costs for
eligible employees. The annual contribution rate is comprised of these components:
1. Normal Cost, which is the amount needed to fund benefits earned by active employees in the upcoming
year;
2. Unfunded liability required contribution, which is the amount charged to pay down the pool’s unfunded
liability.
Each October, CalPERS provides an actuarial valuation report for each benefit plan that updates certain values to
reflect changes in plan activity since the previous valuation. These changes include but are not limited to:
✓ The difference between the expected rate of return and the actual amount realized
✓ Changes in the number of plan members who retire each year
✓ Changes in the number of new plan members
✓ Changes in the annual payroll provided to existing members of the plan
The actuarial valuations also provide new information on the variables associated with maintaining the plan, such
as the amount of the unfunded liability and the annual Employer Contribution rate, which represents the amount
that the City is required to pay for every dollar of eligible payroll, beginning the following fiscal year. The
information used for this report is taken from the latest valuation report that was issued for the year ending June
30, 2017.
CalPERS is a separate and distinct legal entity from the City, and serves as an independent fiduciary in managing
the City’s retirement plan assets.
417 Packet Page 437
PENSION OBLIGATION TRENDS
CALPERS EMPLOYER CONTRIBUTIONS
CalPERS Employer Cost Trends
The following summarizes CalPERS employer costs since 2007-08.
*2008-09 reflects retroactive costs for binding arbitration decision.
Due to significant stock market losses in 2008 and actuarial changes in life expectancy, the CalPERS’ Retirement
and Health Benefit Program Committee approved changes to the employer rate assumptions that limit the period
used to allocate plan losses (smoothing), reflect the changes occurring to the original benefit plan programs’
membership as a result of the lower retirement benefit tiers. In addition, the actuarial assumptions for pooled
plans were changed to create a fixed annual charge to pay down the unfunded liability with the amortization
period fixed to 30 years starting with the 2014-15 valuation.
In December of 2016, the CalPERS Committee voted to lower the discount rate from 7.5% to 7% over a period of
three years, reaching 7% with the 2019-20 valuation. This will result in significant increases for the unfunded
liability. The impacts to the plan’s funding status due to these changes in discount rate will be amortized over 20
years with a ramp-up in required contribution payments over a five-year period after each adjustment takes place
resulting in significant increases in required contributions over the next several years.
Current Cal PERS Employer Contribution Rates
CalPERS has published the employer rates for 2019-20 as well as estimated rates for the years shown below.
While CalPERS has been able to create separate rates for each of the Safety Plan Benefit Tiers, they have chosen
to create a blended rate for all three Miscellaneous retirement benefit tiers. The table below is based on June 30,
2017 valuation date, which is the latest available valuation.
PERS Employer Rates
Retirement Tier 2019-20 2020-21 Projection
Miscellaneous 10.688% 11.4%
Safety Tier I 23.654% 25.1%
Safety Police Tier II 18.183% 19.3%
Safety Police Tier III 13.786% 13.9%
Safety Fire Tier II 20.603% 21.8%
Safety Fire Tier III 13.786% 13.9%
Employee Retirement Contributions
Fiscal Year Safety Non-Safety Total
2007-08 $3,385,800 $3,145,200 $6,531,000
2008-09* $4,484,500 $3,630,900 $8,115,400
2009-10 $3,993,600 $3,514,100 $7,507,700
2010-11 $3,940,000 $3,521,100 $7,461,100
2011-12 $4,202,200 $4,226,700 $8,428,900
2012-13 $4,418,518 $4,347,255 $8,765,773
2013-14 $4,152,103 $4,528,325 $8,680,428
2014-15 $4,607,331 $5,027,328 $9,634,659
2015-16 $5,885,722 $5,824,217 $11,709,939
2016-17 $6,299,915 $6,776,945 $13,076,860
2017-18 $5,910,345 $6,698,266 $12,608,611
418 Packet Page 438
PENSION OBLIGATION TRENDS
In addition to the rate for the normal cost, CalPERS requires a fixed annual charge to pay down the unfunded
liability. The June 30, 2017 valuation provides the amount for 2019 -20 and a projection for 2020-21 as shown
below.
Unfunded Liability Payments
Employer Payment 2019-20 2020-21 Projection
Miscellaneous $ 5,579,340 $ 6,083,000
Safety $ 5,003,094 $ 5,509,900
Employee Contribution Rates
Employees are making contributions to CalPERS along with employer contribution rates. Employee contribution
rates vary, depending on retirement tier. Beginning in January 2014, the Police Officers Association agreed to
contribute an additional 3% of pay to offset the employer’s share of the retirement contribution. In 2018, the
Fire, Unrepresented Management and Confidential employee groups agreed to contribute an additional 3.0% of
pay to offset the employer’s share of the retirement contribution.
Employee Plan Employee Contribution Rate
Miscellaneous 6.25% to 11%
Public Safety Sworn 9% to 15%
419 Packet Page 439
PENSION OBLIGATION TRENDS
CalPERS Plan Funding Levels
The following shows CalPERS funding levels for the City’s Miscellaneous Plan and Safety Pool for the actuarial
valuations from June 30, 2008 through June 30, 2017. This is the most recent actual information that is available
from CalPERS.
Actuarial
Valuation
Date Ending
June 30
Asset Value
(1)(2)
Entry Age Actuarial
Accrued Liability
Assets Over (Under)
Actuarial Accrued
Liability
Funded
Ratio
Tier I Safety Employee Plan
2008 $ 7,464,927 $ 8,700,468 $ (1,235,541) 85.8%
2009 $ 8,027,159 $ 9,721,676 $ (1,694,517) 82.6%
2010 $ 8,470,235 $ 10,165,475 $ (1,695,240) 83.3%
2011 $ 94,068 $ 143,482 $ (49,414) 65.6%
2012 $ 92,264 $ 149,615 $ (57,351) 61.7%
2013 $ 100,910 $ 154,746 $ (53,836) 65.2%
2014 $ 113,884 $ 165,802 $ (51,918) 68.7%
2015 $ 111,864 $ 170,942 $ (59,078) 65.4%
2016 $ 109,934 $ 178,704 $ (68,770) 61.5%
2017 $ 118,917 $ 188,177 $ (69,260) 63.2%
Miscellaneous Employee Plan
2008 $ 85,341 $ 110,763 $ (25,422) 77.0%
2009 $ 91,851 $ 130,764 $ (38,913) 70.2%
2010 $ 97,282 $ 138,627 $ (41,345) 70.2%
2011 $ 103,392 $ 150,651 $ (47,259) 68.6%
2012 $ 108,926 $ 157,223 $ (48,297) 69.3%
2013 $ 101,989 $ 163,765 $ (61,776) 62.3%
2014 $ 117,762 $ 178,138 $ (60,376) 66.1%
2015 $ 118,043 $ 185,020 $ (66,977) 63.8%
2016 $ 116,863 $ 196,413 $ (79,550) 59.5%
2017 $ 128,186 $ 208,025 $ (79,839) 61.6%
In Thousands of Dollars
Beginning in 2006, Safety Plan is a member of a CalPERS safety pool.
(1) Before 2013, CalPERS used the Actuarial Value of Assets, starting in 2013 Market Value of Assets is
used.
(2) For 2008 through 2010, CalPERS reported on safety pool funding status; beginning with 2011,
CalPERS reports on the City's share of the pool liability and assets.
420 Packet Page 440
Reference Material Appropriation Limit
Appropriation Limit
The City’s appropriation limit is based on the Gann Spending Limit Initiative, a State constitutional
amendment adopted by the voters on June 6, 1979 and amended in 1990 with Proposition 111. It is
anchored in the State Constitution under Article XIIIB.
The limit restricts appropriations from tax revenues by State and local governments. Under its
provisions, no local agency can appropriate proceeds of taxes in excess of its “appropriation limit”.
Excess funds may be carried over into the next year. However, any excess funds remaining after the
second year must be returned to taxpayers by reducing tax rates or fees; a majority of the voters may
approve an override to increase the limit.
The City’s appropriation limit is calculated by considering population growth and cost of living as
allowed under Proposition 111. Since 2013-14, the City has chosen to use the percentage increase in
new non-residential construction as the cost of living factor.
Appropriation Limit 2019-20 - Calculation
Factors Ratio Formula
A )Prior Year Appropriation Limit $87,667,937
B) Adjustment Factors
1. Population Change 0.24% 1.0024
2. Cost of Living Increase 38.40% 1.3840
3. Combined Factor 38.73% 1.3873 B1*B2
Adjusted Limit $121,625,076 A*B3
The following summarizes changes in the City’s appropriation limit and appropriations subject to the
limit for the past ten years as well as the appropriation limit for 2019-20.
Fiscal
Year
Limit Base Cost of
Living
Factor
Population
Factor
Appropriation
Limit
Appropriations
Subject to
Limit
Variance
2009-10 $ 47,758,200 0.62% 1.01% $ 48,540,600 $ 27,159,400 $ 21,381,200
2010-11 48,540,600 -2.54% 0.87% 47,719,200 32,058,100 15,661,100
2011-12 47,719,200 2.51% 0.83% 49,323,000 34,229,700 15,093,300
2012-13 49,323,000 3.77% 0.47% 51,423,500 44,178,300 7,245,200
2013-14 51,423,500 5.12% 0.52% 54,337,500 40,104,100 14,233,400
2014-15 54,337,500 8.69% 0.09% 59,112,600 36,642,900 22,469,700
2015-16 59,112,600 4.97% 0.78% 62,534,500 46,067,700 16,466,800
2016-17 62,534,500 5.63% 0.60% 66,451,500 49,397,200 17,054,300
2017-18 66,451,500 8.20% 0.92% 72,562,034 50,036,391 22,525,643
2018-19 72,562,034 20.40% 0.35% 87,667,937 51,142,315 36,525,622
2019-20 87,667,937 38.40% 0.24% 121,625,076 50,127,692 71,497,384
421 Packet Page 441
Fiscal Policies
Section 1. GENERAL REVENUE MANAGEMENT
A. Diversified and Stable Base. The City will seek to maintain a diversified and stable revenue base to
protect it from short-term fluctuations in any one revenue source.
B. Long-Range Focus. To emphasize and facilitate long-range financial planning, the City will maintain
current projections of revenues for the succeeding five years.
C. Current Revenues for Current Uses. The City will make all current expenditures with current
revenues, avoiding procedures that balance current budgets by postponing needed expenditures,
accruing future revenues, or rolling over short-term debt.
D. Interfund Transfers and Loans. In order to achieve important public policy goals, the City has
established various special revenue, capital project, debt service and enterprise funds to account for
revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a
separate financing entity from other funds, with its own revenue sources, expenditures and fund
equity.
Any transfers between funds for operating purposes are clearly set f orth in the Financial Plan, and
can only be made by the Finance Director in accordance with the adopted budget. These operating
transfers, under which financial resources are transferred from one fund to another, are distinctly
different from interfund borrowings, which are usually made for temporary cash flow reasons, and
are not intended to result in a transfer of financial resources by the end of the fiscal year.
In summary, interfund transfers result in a change in fund equity; interfund borrowings do not, as
the intent is to repay the loan in the near term.
From time to time, interfund borrowings may be appropriate; however, these are subject to the
following criteria in ensuring that the fiduciary purpose of the fund is met:
1. The Finance Director is authorized to approve temporary interfund borrowings for cash flow
purposes whenever the cash shortfall is expected to be resolved within 45 days. The most
common use of interfund borrowing under this circumstance is for grant programs like th e
Community Development Block Grant, where costs are incurred before drawdowns are initiated
and received. However, receipt of funds is typically received shortly after the request for funds
has been made.
2. Any other interfund borrowings for cash flow or other purposes require case-by-case approval
by the Council.
3. Any transfers between funds where reimbursement is not expected within one fiscal year shall
not be recorded as interfund borrowings; they shall be recorded as interfund operating transfers
that affect equity by moving financial resources from one fund to another.
422 Packet Page 442
Fiscal Policies
Section 2. USER FEE COST RECOVERY GOALS
A. Ongoing Review
Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with changes
in the cost-of-living as well as changes in methods or levels of service delivery.
In implementing this goal, a comprehensive analysis of City costs and fees should be made at least
every five years. In the interim, fees will be adjusted by annual changes in the Consumer Price Index.
Fees may be adjusted during this interim period based on supplemental analysis whenever there
have been significant changes in the method, level or cost of service delivery.
B. User Fee Cost Recovery Levels
In setting user fees and cost recovery levels, the following factors will be considered:
1. Community-Wide Versus Special Benefit. The level of user fee cost recovery should consider the
community-wide versus special service nature of the program or activity. The use of general-
purpose revenues is appropriate for community-wide services, while user fees are appropriate
for services that are of special benefit to easily identified individuals or groups.
2. Service Recipient Versus Service Driver. After considering community-wide versus special
benefit of the service, the concept of service recipient versus service driver should also be
considered. For example, it could be argued that the applicant is not the beneficiary of the City's
development review efforts: the community is the primary beneficiary. However, the applicant
is the driver of development review costs, and as such, cost recovery from the applicant is
appropriate.
3. Effect of Pricing on the Demand for Services. The level of cost recovery and related pricing of
services can significantly affect the demand and subsequent level of services provided. At full
cost recovery, this has the specific advantage of ensuring that the City is providing services for
which there is genuinely a market that is not overly-stimulated by artificially low prices.
Conversely, high levels of cost recovery will negatively impact the delivery of services to lower
income groups. This negative feature is especially pronounced, and works against public policy,
if the services are specifically targeted to low income groups.
4. Feasibility of Collection and Recovery. Although it may be determined that a high level of cost
recovery may be appropriate for specific services, it may be impractical or too costly to establish
a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting
charges should also be considered in developing user fees, especially if significant program costs
are intended to be financed from that source.
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Fiscal Policies
C. Factors Favoring Low Cost Recovery Levels
Very low-cost recovery levels are appropriate under the following circumstances:
1. There is no intended relationship between the amount paid and the benefit received. Almost all
"social service" programs fall into this category as it is expected that one group will subsidize
another.
2. Collecting fees is not cost-effective or will significantly impact the efficient delivery of the service.
3. There is no intent to limit the use of (or entitlement to) the service. Again, most "social service"
programs fit into this category as well as many public safety (police and fire) emergency response
services. Historically, access to neighborhood and community parks would also fit into this
category.
4. The service is non-recurring, generally delivered on a "peak demand" or emergency basis, cannot
reasonably be planned for on an individual basis, and is not readily available from a private sector
source. Many public safety services also fall into this category.
5. Collecting fees would discourage compliance with regulatory requirements and adherence is
primarily self-identified, and as such, failure to comply would not be readily detected by the City.
Many small-scale licenses and permits might fall into this category.
D. Factors Favoring High Cost Recovery Levels
The use of service charges as a major source of funding service levels is especially appropriate
under the following circumstances:
1. The service is similar to services provided through the private sector.
2. Other private or public sector alternatives could or do exist for the delivery of the service.
3. For equity or demand management purposes, it is intended that there be a direct relationship
between the amount paid and the level and cost of the service received.
4. The use of the service is specifically discouraged. Police responses to disturbances or false alarms
might fall into this category.
5. The service is regulatory in nature and voluntary compliance is not expected to be the primary
method of detecting failure to meet regulatory requirements. Building permit, plan checks, and
subdivision review fees for large projects would fall into this category.
E. General Concepts Regarding the Use of Service Charges
The following general concepts will be used in developing and implementing service charges:
1. Revenues should not exceed the reasonable cost of providing the service.
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Fiscal Policies
2. Cost recovery goals should be based on the total cost of delivering the service, including direct
costs, departmental administration costs and organization -wide support costs such as
accounting, personnel, information technology, legal services, fleet maintenance and insurance.
3. The method of assessing and collecting fees should be as simple as possible in order to reduce
the administrative cost of collection.
4. Rate structures should be sensitive to the "market" for similar services as well as to smaller,
infrequent users of the service.
5. A unified approach should be used in determining cost recovery levels for various programs
based on the factors discussed above.
F. Low Cost-Recovery Services
Based on the criteria discussed above, the following types of services should have very low-cost
recovery goals. In selected circumstances, there may be specific activities within the broad scope of
services provided that should have user charges associated with them. However, the primary source
of funding for the operation as a whole should be general-purpose revenues, not user fees.
1. Delivering public safety emergency response services such as police patrol services and fire
suppression.
2. Maintaining and developing public facilities that are provided on a uniform, community-wide
basis such as streets, parks and general-purpose buildings.
3. Providing social service programs and economic development activities.
G. Recreation Programs
The following cost recovery policies apply to the City's recreation programs:
1. Cost recovery for activities directed to adults should be relatively high.
2. Cost recovery for activities directed to youth and seniors should be relatively low. In those
circumstances where services are similar to those provided in the private sector, cost recovery
levels should be higher.
Although ability to pay may not be a concern for all youth and senior participants, these are
desired program activities, and the cost of determining need may be greater than the cost of
providing a uniform service fee structure to all participants. Further, there is a community-wide
benefit in encouraging high-levels of participation in youth and senior recreation activities
regardless of financial status.
425 Packet Page 445
Fiscal Policies
3. Cost recovery goals for recreation activities are set as follows:
High-Range Cost Recovery Activities - (60% to 100%)
a. Adult athletics
b. Banner permit applications
c. Child care services
d. Facility rentals (indoor and outdoor; excludes use of facilities for internal City uses)
Mid-Range Cost Recovery Activities - (30% to 60%)
e. Triathlon
f. Golf
g. Summer and Spring Break Camps
h. Classes
i. Major commercial film permit applications
Low-Range Cost Recovery Activities- (0 to 30%)
j. Aquatics
k. Community gardens
l. Junior Ranger camp
m. Minor commercial film permit applications
n. Skate park
o. Parks and Recreation sponsored events (except for Triathlon)
p. Youth sports
q. Teen services
r. Senior/boomer services
4. For cost recovery activities of less than 100%, there should be a differential in rates between
residents and non-residents. However, the Director of Parks and Recreation is authorized to
reduce or eliminate non-resident fee differentials when it can be demonstrated that:
a. The fee is reducing attendance.
b. And there are no appreciable expenditure savings from the reduced attendance.
5. Charges will be assessed for use of rooms, pools, gymnasiums, ball fields, special -use areas, and
recreation equipment for activities not sponsored or co-sponsored by the City. Such charges will
generally conform to the fee guidelines described above. However, the Director of Parks and
Recreation is authorized to charge fees that are closer to full cost recovery for facilities that are
heavily used at peak times and include a majority of non -resident users.
6. A vendor charge of at least 10 percent of gross income will be assessed from individuals or
organizations using City facilities for moneymaking activities.
426 Packet Page 446
Fiscal Policies
7. Director of Parks and Recreation is authorized to offer reduced fees such as introductory rates,
family discounts and coupon discounts on a pilot basis (not to exceed 18 months) to promote
new recreation programs or resurrect existing ones.
8. The Parks and Recreation Department will consider waiving fees only when the City Manager
determines in writing that an undue hardship exists.
H. Development Review Programs
The following cost recovery policies apply to the development review programs:
1. Services provided under this category include:
a. Planning (planned development permits, tentative tract and parcel maps, re -zonings, general
plan amendments, variances, use permits).
b. Building and safety (building permits, structural plan checks, inspections).
c. Engineering (public improvement plan checks, inspections, subdivision requirements,
encroachments).
d. Fire plan check.
2. Cost recovery for these services should generally be very high. In most instances, the City's cost
recovery goal should be 100%.
3. However, in charging high cost recovery levels, the City needs to clearly establish and articulate
standards for its performance in reviewing developer applications to e nsure that there is “value
for cost.”
4. Building Permit Plan Check Services – The City of San Luis Obispo offers building permit plan
check services through consultants at a set price, not to exceed 65% of the City’s fee for the
service. Building Permit Plan Check Services are offered by the City on a 100% cost -recovery basis,
and the service is provided after the fee is paid in full. As a result, the Finance Director is
authorized to make appropriations from the related revenue account to cover the cost of the
services provided.
I. Comparability with Other Communities
In setting user fees, the City will consider fees charged by other agencies in accordance with the
following criteria:
1. Surveying the comparability of the City's fees to other communities provides useful background
information in setting fees for several reasons:
a. They reflect the "market" for these fees and can assist in assessing the reasonableness of San
Luis Obispo’s fees.
427 Packet Page 447
Fiscal Policies
b. If prudently analyzed, they can serve as a benchmark for how cost-effectively San Luis Obispo
provides its services.
2. However, fee surveys should never be the sole or primary criteria in setting City fees as there are
many factors that affect how and why other communities have set their fees at their levels. For
example:
a. What level of cost recovery is their fee intended to achieve compared with our cost recovery
objectives?
b. What costs have been considered in computing the fees?
c. When was the last time that their fees were comprehensively evaluated?
d. What level of service do they provide compared with our service or performance standards?
e. Is their rate structure significantly different than ours and what is it intended to achieve?
3. These can be very difficult questions to address in fairly evaluating fees among different
communities. As such, the comparability of our fees to other communities should be one factor
among many that is considered in setting City fees.
Section 3. ENTERPRISE FUND FEES AND RATES
A. Water, Sewer, and Parking. The City will set fees and rates at levels which fully cover the total direct
and indirect costs—including operations, capital outlay, and debt service—of the following
enterprise programs: water, sewer, and parking.
B. Transit. Based on targets set under the Transportation Development Act, the City will strive to cover
at least twenty percent of transit operating costs with fare revenues.
C. Ongoing Rate Review. The City will review and adjust enterprise fees and rate structures as required
to ensure that they remain appropriate and equitable.
D. Cost of Service Fees. The City will treat the water and sewer funds in the same manner as if they
were privately owned and operated. This means assessing reasonable cost of service fees in fully
recovering service costs.
The purpose of the cost of service fee is reasonable cost recovery for the use of the City’s services
such as street rights-of-way and public safety. The appropriateness of charging the water and sewer
fund a reasonable cost of service fee for the use of the City streets is further supported by the results
of studies from Arizona, California, Ohio, and Vermont which concluded that the leading cause of
street resurfacing and reconstruction is street cuts and trenching for Utilities.
428 Packet Page 448
Fiscal Policies
Section 4. REVENUE DISTRIBUTION
The Council recognizes that generally accepted accounting principles for state and local governments
discourage the “earmarking” of General Fund revenues, and accordingly, the practice of designating
General Fund revenues for specific programs should be minimized in the City's management of its fiscal
affairs. Approval of the following revenue distribution policies does not prevent the Council from
directing General Fund resources to other functions and programs as necessary.
A. Property Taxes. With the passage of Proposition 13 on June 6, 1978, California cities no longer can
set their own property tax rates. In addition to limiting annual increases in market value, placing a
ceiling on voter-approved indebtedness, and redefining assessed valuations, Proposition 13
established a maximum county-wide levy for general revenue purposes of 1% of market value. Under
subsequent state legislation, which adopted formulas for the distribution of this countywide levy,
the City now receives a percentage of total property tax revenues collected countywide as
determined by the State and administered by the County Auditor-Controller. The City receives 14.9%
of each dollar collected in property tax after allocations to school districts.
Accordingly, while property revenues are often thought of as local revenue sources, in essence they
are State revenue sources, since the State controls their use and allocation.
With the adoption of a Charter revision in November 1996, which removed provisions that were in
conflict with Proposition 13 relating to the setting of property tax revenues between various funds,
all property tax revenues are now accounted for in the General Fund.
B. Gasoline Tax Subventions. All gasoline tax revenues (which are restricted by the St ate for street-
related purposes) will be used for maintenance activities. Since the City's total expenditures for gas
tax eligible programs and projects are much greater than this revenue source, operating transfers
will be made from the gas tax fund to the General Fund for this purpose. This approach significantly
reduces the accounting efforts required to meet State reporting requirements.
C. Transportation Development Act (TDA) Revenues. All TDA revenues will be allocated to alternative
transportation programs, including regional and municipal transit systems, bikeway improvements,
and other programs or projects designed to reduce automobile usage. Because TDA revenues will
not be allocated for street purposes, it is expected that alternative transporta tion programs (in
conjunction with other state or federal grants for this purpose) will be self -supporting from TDA
revenues.
D. Parking Fines. All parking fine revenues will be allocated to the parking fund, except for those
collected by Police staff (who are funded by the General Fund) in implementing neighborhood
wellness programs.
429 Packet Page 449
Fiscal Policies
Section 5. INVESTMENTS
A. Responsibility. Investments and cash management are the responsibility of the City Treasurer or
designee. It is the City’s policy to appoint the Finance Director as the City’s Treasurer.
B. Investment Objective. The City's primary investment objective is to achieve a reasonable rate of
return while minimizing the potential for capital losses arising from market changes or issuer default.
Accordingly, the following factors will be considered in priority order in determining individual
investment placements:
1. Safety
2. Liquidity
3. Yield
C. Tax and Revenue Anticipation Notes: Not for Investment Purposes. There is an appropriate role for
tax and revenue anticipation notes (TRANS) in meeting legitimate short -term cash needs within the
fiscal year. However, many agencies issue TRANS as a routine business practice, not solely for cash
flow purposes, but to capitalize on the favorable difference between the interest cost of issuing
TRANS as a tax-preferred security and the interest yields on them if re-invested at full market rates.
As part of its cash flow management and investment strategy, the City will only issue TRANS or other
forms of short-term debt if necessary to meet demonstrated cash flow needs; TRANS or any other
form of short-term debt financing will not be issued for investment purposes.
As long as the City maintains its current policy of maintaining fund/working capital balances that are
20% of operating expenditures, it is unlikely that the City would need to issue TRANS for cash flow
purposes except in very unusual circumstances.
D. Selecting Maturity Dates. The City will strive to keep all idle cash balances fully invested through
daily projections of cash flow requirements. To avoid forced liquidations and losses of investment
earnings, cash flow and future requirements will be the primary consideration when selecting
maturities.
E. Diversification. As the market and the City's investment portfolio change, care will be taken to
maintain a healthy balance of investment types and maturities.
F. Authorized Investments. The City will invest only in those instruments authorized by the California
Government Code Section 53601.
The City will not invest in stock, will not speculate and will not deal in futures or options. The
investment market is highly volatile and continually offers new and creative opportunities for
enhancing interest earnings. Accordingly, the City will thoroughly investigate any new investment
vehicles before committing City funds to them.
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Fiscal Policies
G. Authorized Institutions. Current financial statements will be maintained for each institution in which
cash is invested. Investments will be limited to 20 percent of the total net worth of any institution
and may be reduced further or refused altogether if an institution's fina ncial situation becomes
unhealthy.
H. Consolidated Portfolio. In order to maximize yields from its overall portfolio, the City will consolidate
cash balances from all funds for investment purposes and will allocate investment earnings to each
fund in accordance with generally accepted accounting principles.
I. Safekeeping. Ownership of the City's investment securities will be protected through third -party
custodial safekeeping.
J. Investment Management Plan. The City Treasurer will develop and maintain an Investment
Management Plan that addresses the City's administration of its portfolio, including investment
strategies, practices and procedures.
K. Investment Oversight Committee. As set forth in the Investment Management Plan, this committee
is responsible for reviewing the City’s portfolio on an ongoing basis to determine compliance with
the City’s investment policies and for making recommendations to the City Treasurer (Finance
Director regarding investment management practices.
Members include the City Manager, Assistant City Manager, Finance Director/City Treasurer,
Accounting Manager, the City’s independent auditor, one City Council member, and one member of
the public.
The member of the public shall be appointed by the City Council in accordance with the City’s process
for appointing advisory body members.
L. Reporting. The City Treasurer will develop and maintain a comprehensive, well-documented
investment reporting system, which will comply with Government Code Section 53607. This
reporting system will provide the Council and the Investment Oversight Committee with appropriate
investment performance information.
Section 6. APPROPRIATIONS LIMITATION
A. The Council will annually adopt a resolution establishing the City's appropriations limit calculated in
accordance with Article XIII-B of the Constitution of the State of California, Section 7900 of the State
of California Government Code, and any other voter approved amendments or state legislation that
affect the City's appropriations limit.
B. The supporting documentation used in calculating the City's appropriations lim it and projected
appropriations subject to the limit will be available for public and Council review at least 10 days
before Council consideration of a resolution to adopt an appropriations limit. The Council will
generally consider this resolution in connection with final approval of the budget.
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Fiscal Policies
C. The City will strive to develop revenue sources, both new and existing, which are considered non-tax
proceeds in calculating its appropriations subject to limitation.
D. The City will annually review user fees and charges and report to the Council the amount of program
subsidy, if any, that is being provided by the General or Enterprise Funds.
E. The City will actively support legislation or initiatives sponsored or approved by League of California
Cities which would modify Article XIII-B of the Constitution in a manner which would allow the City
to retain projected tax revenues resulting from growth in the local economy for use as determined
by the Council.
F. The City will seek voter approval to amend its appropriation limit at such time that tax proceeds are
in excess of allowable limits.
Section 7. FUND BALANCE AND RESERVES
A. Minimum Fund and Working Capital Balances. The City will maintain a minimum fund balance of at
least 20% of operating expenditures in the General Fund and a minimum working capital balance of
20% of operating expenditures in the water, sewer and parking enterprise funds. This is considered
the minimum level necessary to maintain the City's credit worthiness and to adequately provide for:
1. Economic uncertainties, local disasters, and other financial hardships or downturns in the local
or national economy.
2. Contingencies for unseen operating or capital needs.
3. Cash flow requirements.
B. Fleet Replacement. For the General Fund fleet, the City will establish and maintain a Fleet
Replacement Fund to provide for the timely replacement of vehicles and related equipment with
an individual replacement cost of $15,000 or more. During the 2017-179 Financial Plan period, the
City will establish and maintain a minimum fund balance in the Fleet Replacement Fund equal to
$500,000 for the emergency replacement of vehicles that are damaged beyond repair, and are
either not covered under the City’s property insurance pro gram or the vehicle has a high
replacement cost and insurance proceeds will be inadequate to provide for the vehicle’s
replacement (fire engine). Above this contingency level, the amount retained in this fund, coupled
with the annual contributions received by it from any source, shall be adequate to fully fund the
equipment replacements approved in the Financial Plan.
Interest earnings and the proceeds from the sales of surplus equipment as well as any related
damage and insurance recoveries will be credited to the Fleet Replacement Fund.
C. Information Technology (IT) Replacement Fund. The City will establish an IT Replacement Fund for
the General Fund to provide for the timely replacement of information technology, both hardware
and software, with an individual replacement cost of $25,000 or more. During the 2017-19
Financial Plan period, the City will establish and maintain a minimum fund balance in this fund
equal to $400,000 for the emergency replacement of equipment that is damaged beyond repair
and not covered under the City’s property insurance program.
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Interest earnings and the proceeds from the sale of surplus equipment as well as any related
damage and insurance recoveries will be credited to the fund.
D. Major Facility Replacement Fund. The City will maintain a reserve within this fund for the purpose
of funding the cost of improvements having a cost of $25,000 or more to city-owned, general
government building and structures. The amount retained in this fund , coupled with annual
contributions received by it from any source, to adequately fund maintenance and replacement of
City facilities.
E. Infrastructure Investment Fund. The City will maintain a reserve within this fund for the purpose of
funding infrastructure projects that contribute to improved economic development and enhanced
quality of life in the City of San Luis Obispo. The following evaluation criteria shall be applied to
project eligibility:
1. The use of City funds shall not offset any cost that would be expected to be paid to meet the fair
share obligation of any developer.
2. The use of City funds shall not offset a project specific cost identified through the environmental
review process or under existing regulations or policies.
3. The use of funds shall support a project that would not otherwise be feasible due to economic,
timing or other issues outside control of the project proponents or the City.
4. The project shall provide public benefit by contributing to economic development and quality of
life within the City.
F. Insurance Fund. The City will establish an Insurance Fund for the purpose of paying its annual liability
and worker’s compensation insurance and help to manage the fluctuations in the insurance
programs. A reserve within the Insurance Fund for the Liability Excess Insurance Program will be
maintained at approximately 75% funded confidence level based on the prior five-year average
claims experience.
G. Water and Sewer Rate Stabilization Reserves. The City will maintain a reserve for the purposes of
offsetting unanticipated fluctuations in Water Fund or Sewer Fund revenues to provide financial
stability, including the stability of revenues and the rates and charges related to each Enterprise.
The funding target for the Rate Stabilization Reserve will be 10% of sales revenue in the Water Fund
and 5% of sales revenue in the Sewer Fund.
Conditions for utilization and plan for replenishment of the reserve will be brought to Council for its
consideration during the preparation and approval of the Financial Plan or as may become necessary
during any fiscal year.
H. Future Capital Project Designations. The Council may designate specific fund balance levels for
future development of capital projects that it has determined to be in the best long-term interests
of the City. For example, replacement of critical information technology infrastructure or other
projects.
I. Other Designations and Reserves. In addition to the designations noted above, fund balance levels
will be sufficient to meet funding requirements for projects approved in prior years which are carried
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forward into the new year; debt service reserve requirements; reserves for encumbrances; and other
reserves or designations required by contractual obligations, state law, or generally accepted
accounting principles.
K. Essential Safety Equipment Funding. The City will carry forward year-end project balance designated
for essential safety equipment indefinitely.
Section 8. CAPITAL IMPROVEMENT MANAGEMENT
A. CIP Projects: $25,000 or More. Construction projects and equipment purchases which cost $25,000
or more will be included in the Capital Improvement Plan (CIP); minor capital outlays of less than
$25,000 will be included with the operating program budgets. Such projects are accounted for in the
Capital Outlay Fund.
B. CIP Purpose. The purpose of the CIP is to systematically plan, schedule, and finance capital projects
to ensure cost-effectiveness as well as conformance with established policies. The CIP is a five-year
plan organized into the same functional groupings used for the operating programs. The CIP will
reflect a balance between capital replacement projects that repair, replace or enhance existing
facilities, equipment or infrastructure; and capital facility projects that significantly expand or add to
the City's existing fixed assets.
C. Project Manager. Every CIP project will have a project manager who will prepare the project
proposal, ensure that required phases are completed on schedule, authorize all project expenditures,
ensure that all regulations and laws are observed, and periodically report project status.
D. CIP Review Committee. Headed by the City Manager or designee, this Committee will review project
proposals, determine project phasing, recommend project managers, review and evaluate the draft
CIP budget document, and report CIP project progress on an ongoing basis.
E. CIP Phases. The CIP will emphasize project planning, with projects progressing through at least two
and up to ten of the following phases:
1. Designate. Appropriates funds based on projects designated for funding by the Council through
adoption of the Financial Plan.
2. Study. Concept design, site selection, feasibility analysis, schematic design, environmental
determination, property appraisals, scheduling, grant application, grant approval, specification
preparation for equipment purchases.
3. Environmental Review. EIR preparation, other environmental studies.
4. Real Property Acquisitions. Property acquisition for projects, if necessary.
5. Site Preparation. Demolition, hazardous materials abatements, other pre-construction work.
6. Design. Final design, plan and specification preparation and construction cost estimation.
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7. Construction. Construction contracts.
8. Construction Management. Contract project management and inspection, soils and material
tests, other support services during construction.
9. Equipment Acquisitions. Vehicles, heavy machinery, computers, office furnishings, other
equipment items acquired and installed independently from construction contracts.
10. Debt Service. Installment payments of principal and interest for completed projects funded
through debt financings. Expenditures for this project phase are included in the Debt Service
section of the Financial Plan.
Generally, it will become more difficult for a project to move from one phase to the next. As such,
more projects will be studied than will be designed, and more projects will be designed than will be
constructed or purchased during the term of the CIP.
F. Insurance Benefit Fund. The City will establish an Insurance Benefit Fund for the purpose of
setting funds aside to manage the fluctuations in liability and worker’s compensation insurance
programs. A reserve within the Insurance Benefit Fund for the Liability Excess Insurance Program
will be maintained at approximately 75% funded confidence level based on the prior five-year
average claims experience.
G. CIP Appropriation. The City’s annual CIP appropriation for study, design, acquisition and/or
construction is based on the projects designated by the Council through adoption of the Financial
Plan. Adoption of the Financial Plan CIP appropriation does not automatically authorize funding for
specific project phases. This authorization generally occurs only after the preceding project phase
has been completed and approved by the Council and costs for the succeeding phases have been
fully developed.
Accordingly, project appropriations are generally made when contracts are awarded. If project costs
at the time of bid award are less than the budgeted amount, the balance will be unappropriated and
returned to fund balance or allocated to another project. If project costs at the time of bid award
are greater than budget amounts, five basic options are available:
1. Eliminate the project.
2. Defer the project for consideration to the next Financial Plan period.
3. Rescope or change the phasing of the project to meet the existing budget.
4. Transfer funding from another specified, lower priority project.
5. Appropriate additional resources as necessary from fund balance.
H. CIP Budget Carryover. Appropriations for CIP projects lapse three years after budget adoption.
Projects which lapse from lack of project account appropriations may be resubmitted for inclusion in
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a subsequent CIP. Project accounts, which have been appropriated, will not lap se until completion
of the project phase.
I. Program Objectives. Project phases will be listed as objectives in the program narratives of the
programs, which manage the projects.
J. Public Art. CIP projects will be evaluated during the budget process and prior to each phase for
conformance with the City's public art policy, which generally requires that 1% of eligible project
construction costs be set aside for public art. Excluded from this requirement are underground
projects, utility infrastructure projects, funding from outside agencies, and costs other than
construction such as study, environmental review, design, site preparation, land acquisition and
equipment purchases.
It is generally preferred that public art be incorporated directly into the project, but this is not
practical or desirable for all projects; in this case, an in-lieu contribution to public art will be made.
To ensure that funds are adequately budgeted for this purpose regardless of whether public art will
be directly incorporated into the project, funds for public art will be identified separately in the CIP.
K. General Plan Consistency Review. The Planning Commission will review the Preliminary CIP for
consistency with the General Plan and provide is findings to the Council prior to adoption.
Section 9. CAPITAL FINANCING AND DEBT MANAGEMENT
A. Capital Financing
1. The City will consider the use of debt financing only for one -time capital improvement projects
and only under the following circumstances:
a. When the project’s useful life will exceed the term of the financing.
b. When project revenues or specific resources will be sufficient to service the long-term debt.
2. Debt financing will not be considered appropriate for any recurring purpose such as current
operating and maintenance expenditures. The issuance of short-term instruments such as
revenue, tax or bond anticipation notes is excluded from this limitation. (See Investment Policy)
3. Capital improvements will be financed primarily through user fees, service charges, assessments,
special taxes or developer agreements when benefits can be specifically attributed to users of
the facility. Accordingly, development impact fees should be created and impl emented at levels
sufficient to ensure that new development pays its fair share of the cost of constructing necessary
community facilities.
4. Transportation impact fees are a major funding source in financing transportation system
improvements. However, revenues from these fees are subject to significant fluctuation based
on the rate of new development. Accordingly, the following guidelines will be followed in
designing and building projects funded with transportation impact fees:
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a. The availability of transportation impact fees in funding a specific project will be analyzed on
a case-by-case basis as plans and specification or contract awards are submitted for City
Manager or Council approval.
b. If adequate funds are not available at that time, the Council will make one of two
determinations:
• Defer the project until funds are available.
• Based on the high-priority of the project, advance funds from the General Fund, which
will be reimbursed as soon as funds become available. Repayment of General Fund
advances will be the first use of transportation impact fee funds when they become
available.
5. The City will use the following criteria to evaluate pay-as-you-go versus long-term financing in
funding capital improvements:
a. Factors Favoring
Pay-As-You-Go Financing
1. Current revenues and adequate fund balances are available, or project phasing can be
accomplished.
2. Existing debt levels adversely affect the City's credit rating.
3. Market conditions are unstable or present difficulties in marketing.
b. Factors Favoring Long Term Financing
1. Revenues available for debt service are deemed sufficient and reliable so that long -term
financings can be marketed with investment grade credit ratings.
2. The project securing the financing is of the type which will support an investment grade credit
rating.
3. Market conditions present favorable interest rates and demand for City financings.
4. A project is mandated by state or federal requirements, and resources are insufficient or
unavailable.
5. The project is immediately required to meet or relieve capacity needs and current resources
are insufficient or unavailable.
6. The life of the project or asset to be financed is 10 years or longer.
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7. Vehicle leasing when market conditions and operational circumstances present favorable
opportunities.
B. Debt Management
1. The City will not obligate the General Fund to secure long -term financings except when
marketability can be significantly enhanced.
2. An internal feasibility analysis will be prepared for each long-term financing which analyzes the
impact on current and future budgets for debt service and operations. This analysis will also
address the reliability of revenues to support debt service.
3. The City will generally conduct financings on a competitive basis. However, negotiated financings
may be used due to market volatility or the use of an unusual or complex financing or security
structure.
4. The City will seek an investment grade rating (Baa/BBB or greater) on any direct debt and will
seek credit enhancements such as letters of credit or insurance when necessary for marketing
purposes, availability and cost-effectiveness.
5. The City will monitor all forms of debt annually coincident with the City's Financial Plan
preparation and review process and report concerns and remedies, if needed, to the Council.
6. The City will diligently monitor its compliance with bond covenants and ensure its adherence to
federal arbitrage regulations.
7. The City will maintain good, ongoing communications with bond rating agencies about its
financial condition. The City will follow a policy of full disclosure on every financial report and
bond prospectus (Official Statement).
C. Debt Capacity
1. General Purpose Debt Capacity. The City will carefully monitor its levels of general-purpose debt.
Because our general-purpose debt capacity is limited, it is important that we only use general
purpose debt financing for high-priority projects where we cannot reasonably use other financing
methods for two key reasons:
a. Funds borrowed for a project today are not available to fund other projects tomorrow.
b. Funds committed for debt repayment today are not available to fund operations in the future.
In evaluating debt capacity, general-purpose annual debt service payments should generally not
exceed 10% of General Fund revenues; and in no case should they exceed 15%. Further, direct
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debt will not exceed 2% of assessed valuation; and no more than 60% of capital improvement
outlays will be funded from long-term financings.
2. Enterprise Fund Debt Capacity. The City will set enterprise fund rates at levels needed to fully
cover debt service requirements as well as operations, maintenance, administration and capital
improvement costs. The ability to afford new debt for enterprise operations will be evaluated as
an integral part of the City’s rate review and setting process.
D. Independent Disclosure Counsel
The following criteria will be used on a case-by-case basis in determining whether the City should
retain the services of an independent disclosure counsel in conjunction with specific project
financings:
1. The City will generally not retain the services of an independent disclosure counsel when all of
the following circumstances are present:
a. The revenue source for repayment is under the management or control of the City, such as
general obligation bonds, revenue bonds, lease-revenue bonds or certificates of
participation.
b. The bonds will be rated or insured.
2. The City will consider retaining the services of an independent disclosure counsel when one or
more of following circumstances are present:
a. The financing will be negotiated, and the underwriter has not separately engaged an
underwriter’s counsel for disclosure purposes.
b. The revenue source for repayment is not under the management or control of the City, such
as land-based assessment districts, tax allocation bonds or conduit financings.
c. The bonds will not be rated or insured.
d. The City’s financial advisor, bond counsel or underwriter recommends that the City retain an
independent disclosure counsel based on the circumstances of the financing.
E. Land-Based Financings
1. Public Purpose. There will be a clearly articulated public purpose in forming an assessment or
special tax district in financing public infrastructure improvements. This should include a finding
by the Council as to why this form of financing is preferred over other fu nding options such as
impact fees, reimbursement agreements or direct developer responsibility for the
improvements.
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New development should generally be expected to “pay its own way,” (i.e., provide funding
through one mechanism or another that funds its “proportional share” of public
improvement and infrastructure costs and ongoing operations and maintenance costs).
(1) The City will consider the use of city-based funding sources to fund public facility and
infrastructure improvements that provide for the health, safety and welfare of
existing and future residents and/or provide measurable economic development and
fiscal benefits. In evaluating whether the City will use city-based funding sources, the
following evaluation criteria should be considered:
(a) Significant public benefit, demonstrated by compliance with and
furtherance of General Plan goals, policies, and programs
(b) Alignment with the Major City Goals and other important objectives in place
at the time of the application
(c) Head of Household Job Creation
(d) Housing Creation
(e) Circulation/Connectivity Improvements
(f) Net General Fund fiscal impact
(2) The City generally will not fund or offer public financing for infrastructure
improvements that confer only private benefit to individual property owners or
development projects.
(3) The City shall seek continuity (or improvements to) existing levels of municipal
service by assuring adequate funding for the City’s operation, maintenance and
infrastructure replacement costs.”
2. Eligible Improvements. Except as otherwise determined by the Council when proceedings for
district formation are commenced, preference in financing public improvements through a
special tax district shall be given for those public improvements that help achieve clearly
identified community facility and infrastructure goals in accordance with adopted facility and
infrastructure plans as set forth in key policy documents such as the General Plan, Specific Plan,
Facility or Infrastructure Master Plans, or Capital Improvement Plan.
Such improvements include study, design, construction and/or acquisition of:
a. Public safety facilities.
b. Water supply, distribution and treatment systems.
c. Waste collection and treatment systems.
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d. Major transportation system improvements, such as freeway interchanges; bridges;
intersection improvements; construction of new or widened arterial or collector streets
(including related landscaping and lighting); sidewalks and other pedestrian paths; transit
facilities; and bike paths.
e. Storm drainage, creek protection and flood protection improvements.
f. Parks, trails, community centers and other recreational facilities.
g. Open space.
h. Cultural and social service facilities.
i. Other governmental facilities and improvements such as offices, information technology
systems and telecommunication systems.
School facilities will not be financed except under appropriate joint community facilities
agreements or joint exercise of powers agreements between the City and school districts.
3. Active Role. Even though land-based financings may be a limited obligation of the City, we will
play an active role in managing the district. This means that the City will select and retain the
financing team, including the financial advisor, bond counsel, trustee, appraiser, disclosure
counsel, assessment engineer and underwriter. Any costs incurred by the City in retaining these
services will generally be the responsibility of the property owners or developer, and will be
advanced via a deposit when an application is filed; or will be paid on a conti ngency fee basis
from the proceeds from the bonds.
4. Credit Quality. When a developer requests a district, the City will carefully evaluate the
applicant’s financial plan and ability to carry the project, including the payment of assessments
and special taxes during build-out. This may include detailed background, credit and lender
checks, and the preparation of independent appraisal reports and market absorption studies. For
districts where one property owner accounts for more than 25% of the annual debt service
obligation, a letter of credit further securing the financing may be required.
5. Reserve Fund. A reserve fund should be established in the lesser amount of: the maximum
annual debt service; 125% of the annual average debt service; or 10% of the b ond proceeds.
6. Value-to-Debt Ratios. The minimum value-to-debt ratio should generally be 4:1. This means the
value of the property in the district, with the public improvements, should be at least four times
the amount of the assessment or special tax debt. In special circumstances, after conferring and
receiving the concurrence of the City’s financial advisor and bond counsel that a lower value -to-
debt ratio is financially prudent under the circumstances, the City may consider allowing a value-
to-debt ratio of 3:1. The Council should make special findings in this case.
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7. Appraisal Methodology. Determination of value of property in the district shall be based upon
the full cash value as shown on the ad valorem assessment roll or upon an appraisal by an
independent Member Appraisal Institute (MAI). The definitions, standards and assumptions to
be used for appraisals shall be determined by the City on a case-by-case basis, with input from
City consultants and district applicants, and by reference to relevant materials and information
promulgated by the State of California, including the Appraisal Standards for Land-Secured
Financings prepared by the California Debt and Investment Advisory Commission.
8. Capitalized Interest During Construction. Decisions to capitalize interest will be made on case-
by-case basis, with the intent that if allowed, it should improve the credit quality of the bonds
and reduce borrowing costs, benefiting both current and future property owners.
9. Maximum Burden. Annual assessments (or special taxes in the case of Mello-Roos or similar
districts) should generally not exceed 1% of the sales price of the property; and total property
taxes, special assessments and special taxes payments collected on the tax roll should generally
not exceed 2%.
10. Benefit Apportionment. Assessments and special taxes will be apportioned according to a
formula that is clear, understandable, equitable and reasonably related to the benefit received
by—or burden attributed to—each parcel with respect to its financed improvement. Any annual
escalation factor should generally not exceed 2%.
F. Development Impact Fees Guidelines and Policies
Development impact fees are one-time fees levied on new development, typically levied at the
time building permits are issued, to fund a range of the City’s public facilities and
infrastructure. Such fees are levied both on a citywide basis as well as for specific areas (e.g.,
the Specific Plan Areas). The levy of development impact fees is regulated by the State’s
Mitigation Fee Act (Government Code Section 66000 et seq.).
1. Development impact fees should be set, consistent with the statutory “nexus”
analysis and findings, to fund new development’s proportional share of public
facility and infrastructure costs.
2. Improvements funded by development impact fees should be referenced
generally in the appropriate planning documents (e.g., General Plan, Specific
Plans, etc.) and reflected in the City’s Capital Improvement Program.
3. An exception to this policy may be created by a development agreement
between the City and a private developer. In this case public investments are
offset by measurable public benefits.
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4. The City’s development impact fees can be “leveraged” through the use of fee
credit and reimbursement agreements with developers and landowners.
5. The City’s aggregate fee levels should not render new development that is
otherwise consistent with City plans and regulations economically infeasible.
Aggregate fee levels should be evaluated in terms of a reasonable standard, but
not a strict limit (e.g., aggregate fee levels should not exceed an average of
approximately 10 to 12 percent of the market value of the new development,
either on a per-unit or per-square foot basis).
6. The City may consider reductions or waivers of its development impact fees in
cases where a development project meets specific City planning or economic
development policies such as affordable housing projects. In such cases the
amount of funding foregone must be replaced with other funding sources
available to the City.
1. Special Tax District Administration. In the case of Mello-Roos or similar special tax districts, the
total maximum annual tax should not exceed 110% of annual debt service. The rate and method
of apportionment should include a back-up tax in the event of significant changes from the initial
development plan and should include procedures for prepayments.
a. Community Facilities Districts or Assessment Districts offer a way to fund
infrastructure, maintenance, or municipal services through special taxes or
assessments levied on property owners benefiting from the thus-funded
improvements or services. It can be used for both capital improvements and
ongoing facility maintenance or services.
b. The City will consider the formation of financing districts using the State’s
assessment law or the Mello-Roos Community Facilities Act for its newly
developing areas on a case- by-case basis, consistent with technical analysis and
City priorities (i.e., capital or ongoing funding).
c. The City will consider the effect of the special tax on the City’s ability to issue
General Obligation bonds or other property-based tax measures.
d. Such districts should fund infrastructure or services serving or otherwise providing
benefit to the area subject to the assessment or special tax.
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e. Such districts can fund public facilities or infrastructu re otherwise funded with the
City’s development impact fees or project-specific exactions. In such cases the
area’s development impact fee obligations will be adjusted proportionately.
f. Within any such districts, property value-to-lien ratio should, consistent with
typical underwriting standards, be at least 4.0:1 after calculating the value of the
financed public improvements to be installed and considering any prior or pending
special taxes or improvement liens.
g. Consistent with underwriting standards and market considerations, and as a matter
of policy, the City will limit the maximum amount of special taxes to be levied on any
parcel of property within a Community Facilities District, in any given fiscal year,
together with the general property taxes, general obligation bonds, and other special
taxes and assessments levied on such parcel, shall not exceed an amount equal to
one and eight- tenths percent (1.8 percent) of the projected assessed value of the
parcel (and improvements if applicable). How the special tax capacity is allocated
between capital and ongoing expenditures will depend upon the City’s priorities.
h. The City shall have discretion to allow a special tax in excess of the established limits
for any lands within the CFD which are designated for commercial or industrial uses.
i. As a part of such district formations, the City will retain a special tax consultant to prepare a
report which recommends a special tax rate and method for the proposed CFD and evaluates
the special tax proposed to determine its ability to adequately fund identified public facilities,
City administrative costs, services (if applicable) and other related expenditures .
2. Foreclosure Covenants. In managing administrative costs, the City will establish minimum
delinquency amounts per owner, and for the district as a whole, on a case -by-case basis before
initiating foreclosure proceedings.
3. Disclosure to Bondholders. In general, each property owner who accounts for more than 10% of
the annual debt service or bonded indebtedness must provide ongoing disclosure information
annually as described under SEC Rule 15(c)-12.
4. Disclosure to Prospective Purchasers. Full disclosure about outstanding balances and annual
payments should be made by the seller to prospective buyers at the time that the buyer bids on
the property. It should not be deferred to after the buyer has made the decision to purchase.
When appropriate, applicants or property owners may be required to provide the City with a
disclosure plan.
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G. Conduit Financings
1. The City will consider requests for conduit financing on a case-by-case basis using the following
criteria:
a. The City’s bond counsel will review the terms of the financing and render an opinion that
there will be no liability to the City in issuing the bonds on behalf of the applicant.
b. There is a clearly articulated public purpose in providing the conduit financing.
c. The applicant is capable of achieving this public purpose.
2. This means that the review of requests for conduit financing will generally be a two-step process:
a. First asking the Council if they are interested in considering the request and establishing the
ground rules for evaluating it.
b. And then returning with the results of this evaluation and recommending approval of
appropriate financing documents if warranted.
This two-step approach ensures that the issues are clear for both the City and applicant, and that
key policy questions are answered.
3. The work scope necessary to address these issues will vary from request to request and will have
to be determined on a case-by-case basis. Additionally, the City should generally be fully
reimbursed for our costs in evaluating the request; however, this should also be deter mined on
a case-by-case basis.
B. Refinancings
1. General Guidelines. Periodic reviews of all outstanding debt will be undertaken to determine
refinancing opportunities. Refinancings will be considered (within federal tax law constraints)
under the following conditions:
a. There is a net economic benefit.
b. It is needed to modernize covenants that are adversely affecting the City’s financial position
or operations.
c. The City wants to reduce the principal outstanding in order to achieve future debt service
savings, and it has available working capital to do so from other sources .
2. Standards for Economic Savings. In general, refinancings for economic savings will be
undertaken whenever net present value savings of at least five percent (5%) of the refunded debt
can be achieved.
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a. Refinancings that produce net present value savings of less than five percent will be
considered on a case-by-case basis, provided that the present value savings are at least three
percent (3%) of the refunded debt.
b. Refinancings with savings of less than three percent (3%), or with negative savings, will n ot
be considered unless there is a compelling public policy objective.
C. Enhanced Infrastructure Financing District Guidelines and Policies
a. EIFD financing should be considered for public facilities or infrastructure improvements that
confer Citywide and/or regional benefits. This may include the “City share” of infrastructure
included in the City’s development impact fees.
b. Unless there is a Development Agreement in place that provides otherwise, EIFDs should not
be used to fund real estate projects’ proportional share of infrastructure costs otherwise
included in the City’s development impact fees or charged as project-specific exactions (e.g.,
subdivision improvements).
c. City should consider EIFDs when more than one local government jurisdiction is participating
to produce maximum benefit.
d. At the time of formation of the EIFD (or if changes to the EIFD are contemplated), the City
should require a fiscal impact analysis to determine if an EIFD is fiscally prudent and analyze
opportunity cost to the City’s General Fund.
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HUMAN RESOURCE MANAGEMENT
A. Regular Staffing
1. The budget will fully appropriate the resources needed for authorized regular staffing and will
limit programs to the regular staffing authorized.
2. Regular employees will be the core work force and the preferred means of staffing ongoing, year-
round program activities that should be performed by full-time City employees rather than
independent contractors. The City will strive to provide competitive compensation and benefit
schedules for its authorized regular work force. Each regular employee will:
a. Fill an authorized regular position.
b. Be assigned to an appropriate bargaining unit, unless designated as an unrepresented
management or confidential classification.
c. Receive salary and benefits consistent with labor agreements or other compensation plans.
3. To manage the growth of the regular work force and overall staffing costs, the City will follow
these procedures:
a. The Council will authorize all regular positions.
b. The Human Resources Department will coordinate and approve the hiring of all regular and
supplemental staff.
c. All requests for additional regular positions will include evaluations of:
• The necessity, term and expected results of the proposed activity.
• Staffing and materials costs including salary, benefits, equipment, uniforms, clerical
support and facilities.
• The ability of private industry to provide the proposed service.
• Additional revenues or cost savings, which may be realized.
4. Periodically, and before any request for additional regular positions, programs will be evaluated
to determine if they can be accomplished with fewer regular employees. (See Productivity
Review Policy)
5. Staffing and contract service cost ceilings will limit total expenditures for regular employe es,
supplemental staff, and independent contractors hired to provide operating and maintenance
services.
B. Supplemental Staff
1. The hiring of supplemental staff will not be used as an incremental method for expanding the
City's regular work force.
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2. Supplemental staff include all employees other than regular employees, elected officials and
volunteers. Supplemental staff include temporary employees, interns, and contract employees.
Supplemental staff may work on a full-time or part-time basis and will generally augment regular
City staffing. Supplemental staff may be used as extra-help during peak workloads, as coverage
during extended absences of regular employees, seasonal workforce, as a means to assess
ongoing staffing needs, or as the staffing method for program delivery that is most ef fectively
staffed using part-time hours to ensure adequate coverage.
3. The City Manager and Department Heads will encourage the use of supplemental staff rather
than regular employees to meet peak workload requirements, fill interim vacancies, and
accomplish tasks where less than full-time, year-round staffing is required.
Under this guideline, supplemental staff hours will generally not exceed 50% of a regular, full-
time position (1,000 hours annually). There may be limited circumstances where the use of
supplemental staff on an ongoing basis in excess of this target may be appropriate due to unique
programming or staffing requirements. However, any such exceptions must be approved by the
City Manager based on the review and recommendation of the Human Resources Director.
4. Contract employees are defined as supplemental staff with written contracts approved by the
City Manager who may receive approved benefits. Contract employees will generally be used for
medium-term (generally between six months and two years) projects, programs or activities
requiring specialized or augmented levels of staffing for a specific period.
The services of contract employees will be discontinued upon completion of the assigned project,
program or activity. Accordingly, contract employees will not be used for services that are
anticipated to be delivered on an ongoing basis and as such, a determination as to the expected need
will be made at the end of each contract term and prior to extending or renewing a contract.
C. Overtime Management
1. Overtime should be used only when necessary and when other alternatives are not feasible or
cost effective.
2. All overtime must be pre-authorized by a department head or delegate unless it is assumed pre-
approved by its nature. For example, overtime that results when an employee is assigned to
standby and/or must respond to an emergency or complete an emergency response.
3. Departmental operating budgets should reflect anticipated annual overtime costs and
departments will regularly monitor overtime use and expenditures.
4. When considering the addition of regular or temporary staffing, the use of overtime as an
alternative will be considered. The department will take into account:
a. The duration that additional staff resources may be needed.
b. The cost of overtime versus the cost of additional staff.
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Fiscal Policies
c. The skills and abilities of current staff.
d. Training costs associated with hiring additional staff.
e. The impact of overtime on existing staff.
D. Independent Contractors
Independent contractors are not City employees. They may be used in two situations:
1. Short-term, peak workload assignments to be accomplished using personnel contracted through
an outside temporary employment agency (OEA). In this situation, it is anticipated that City staff
will closely monitor the work of OEA employees and minimal training will be required. However,
they will always be considered the employees of the OEA and not the City. All placements
through an OEA will be coordinated through the Human Resourc es Department and subject to
the approval of the Human Resources Director.
2. Construction of public works projects and delivery of operating, maintenance or specialized
professional services not routinely performed by City employees. Such services will be provided
without close supervision by City staff, and the required methods, skills and equipment will
generally be determined and provided by the contractor. Contract awards will be guided by the
City's purchasing policies and procedures. (See Contracting for Services Policy)
PRODUCTIVITY
Ensuring the “delivery of service with value for cost” is one of the key concepts embodied in the City's
Mission Statement (San Luis Obispo Style— Quality With Vision). To this end, the City will constantly
monitor and review our methods of operation to ensure that services continue to be delivered in the
most cost-effective manner possible.
This review process encompasses a wide range of productivity issues, including:
A. Analyzing systems and procedures to identify and remove unnecessary review requirements.
B. Evaluating the ability of new technologies and related capital investments to improve productivity.
C. Developing the skills and abilities of all City employees.
D. Developing and implementing appropriate methods of recognizing and rewarding exceptional
employee performance.
E. Evaluating the ability of the private sector to perform the same level of service at a lower cost.
F. Periodic formal reviews of operations on a systematic, ongoing basis.
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G. Maintaining a decentralized approach in managing the City's support service functions. Although
some level of centralization is necessary for review and control purposes, decentralization supports
productivity by:
1. Encouraging accountability by delegating responsibility to the lowest possible level.
2. Stimulating creativity, innovation and individual initiative.
3. Reducing the administrative costs of operation by eliminating unnecessary review procedures.
4. Improving the organization's ability to respond to changing needs and identify and implement
cost-saving programs.
5. Assigning responsibility for effective operations and citizen responsiveness to the department.
H. Maintaining City purchasing policies and procedures that are as efficient and effective as possible.
Section 10. CONTRACTING FOR SERVICES
A. General Policy Guidelines
1. Contracting with the private sector for the delivery of services provides the City with a significant
opportunity for cost containment and productivity enhancements. As such, the City is com mitted
to using private sector resources in delivering municipal services as a key element in our
continuing efforts to provide cost-effective programs.
2. Private sector contracting approaches under this policy include construction projects,
professional services, outside employment agencies and ongoing operating and maintenance
services.
3. In evaluating the costs of private sector contracts compared with in-house performance of the
service, indirect, direct, and contract administration costs of the City will be identified and
considered.
4. Whenever private sector providers are available and can meet established service levels, they
will be seriously considered as viable service delivery alternatives using the evaluation criteria
outlined below.
5. For programs and activities currently provided by City employees, conversions to contract
services will generally be made through attrition, reassignment or absorption by the contractor.
B. Evaluation Criteria
Within the general policy guidelines stated above, the cost-effectiveness of contract services in
meeting established service levels will be determined on a case-by-case basis using the following
criteria:
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1. Is a sufficient private sector market available to competitively deliver this service and assure a
reasonable range of alternative service providers?
2. Can the contract be effectively and efficiently administered?
3. What are the consequences if the contractor fails to perform, and can the contract reasonably
be written to compensate the City for any such damages?
4. Can a private sector contractor better respond to expansions, contractions or special
requirements of the service?
5. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and
fully evaluated, as well as the contractor's performance after bid award?
6. Does the use of contract services provide us with an opportunity to redefine service levels?
7. Will the contract limit our ability to deliver emergency or other high priority services?
8. Overall, can the City successfully delegate the performance of the service but still retain
accountability and responsibility for its delivery?
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Basis of Budgeting and Accounting
Basis of Budgeting Budgetary basis refers to the basis of accounting used to estimate financing sources and uses in the
budget. The City prepares its budget for each fund in accordance with its respective basis of accounting.
The City prepares a two-year Financial Plan and appropriates a one-year budget. The City Council
approves the appropriation for governmental funds and business activities (enterprise funds).
Basis of Accounting
In accordance with generally accepted accounting principles, the City’s financial reporting system is
organized on the fund basis consisting of three major fund types -governmental, proprietary, and
fiduciary. The City’s various funds have been established in order to segregate and identify those
financial transactions and resources associated with providing specific activities or programs in
conformance with special regulations, restrictions, or limitations.
Governmental funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Expenditures generally are recorded when a liability is incurred; however, debt service
expenditures, as well as expenditures related tot compensated absences and claims and judgments, are
recorded only when payment is due.
Proprietary (Enterprise) funds are accounted for on the flow of economic resources measurement
focus and use of accrual basis of accounting. Under this method, revenues are recorded when earned
and expenses are recorded at the time liabilities are incurred. The only type of proprietary funds that
the City uses are enterprise funds for water, sewer, parking, and transit services. Within this document,
they are reported under business activities.
Fiduciary funds. The City only reports agency funds as fiduciary funds. Unlike other types of funds,
agency funds only report assets and liabilities, thus they do not have a measurement focus since they do
not report operating activity. However, agency funds do use the accrual basis of accounting to recognize
receivables and payables.
Internal Service fund. The City created an internal services fund to account for the resources needed
to pay for liability, workers compensation, and other benefit-related cost. Internal service funds typically
assess a fee or seek reimbursement for the amounts that are expended and are not expected to
accumulate fund reserves unless needed for a future payment.
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Glossar y
A
Abatement. A reduction in amount, degree, or intensity of something, such as a tax.
Account. A separate financial reporting unit. All budgetary transactions are recorded in accounts.
Accrual Basis. A basis of accounting in which transactions are recognized at the time they are incurred, as
opposed to when cash is received or spent.
Actuarial. A person or methodology that makes determinations or required contributions to achieve future
funding levels that address risk and time.
Ad Valorem Tax. A tax levied on the assessed value of real estate and personal property. This tax is also known
as property tax.
Adopted Budget. The proposed budget as formally approved by the City Council.
Appropriation. An authorization made by the City Council, which permits the City to incur obligations to
make expenditures for specific purposes.
Assessed Valuation. A value that is established for real and personal property for use as a basis for levying
property taxes.
Asset. Resources owned or held by a government that have monetary value.
B
Balanced Budget. A budget in which planned funds or revenues available are equal to planned fund
expenditures.
Bond. A written promise to pay a sum of money on a specific date at a specified interest rate. The interest
payments and the repayment of the principal are detailed in a bond ordinance. The most common types of
bonds are general obligation, revenue bonds, and
Bond Rating. The City of Henderson uses both of the Nation's primary bond rating services - Moody’s
Investors Service and Standard & Poor's. These rating services perform credit analysis to determine the
probability of an issuer of debt defaulting partially or fully.
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Bond Refinancing. The payoff and re issuance of bonds to obtain better interest rates and/or bond
conditions.
Budget. A plan of financial operation for a specified period of time (fiscal year). The Annual Budget authorizes
and provides the basis for control of financial operations during the fiscal year.
Budget Adjustment. A procedure to revise a budget appropriation either by City Council approval through
the adoption of a supplemental appropriation ordinance for any interdepartmental or inter-fund
adjustments or by City Manager authorization to adjust appropriations within a departmental budget.
Budget Calendar. The schedule of key dates or milestones that the City follows in the preparation, adoption,
and administration of the budget.
Budget Document. The instrument used by the budget- making authority to present a comprehensive
financial program to the City Council.
Budget Team. A fun group of hard-working employees responsible for budget preparation, benchmarking,
forecasting, and financial analysis.
Budget Message. The opening section of the budget that provides the City Council and the public with a
general summary of the most important aspects of the budget, changes from the current and previous fiscal
years, and recommendations regarding the financial policy for the upcoming period.
Budgetary Basis. This refers to the form of accounting used throughout the budget process. These generally
take one of three forms: GAAP, cash, modified accrual, or some type of statutory form.
Budgetary Control. The control or management of a governmental unit or enterprise in accordance
with an approved budget for the purpose of keeping expenditures within the limitations of authorized
appropriations and available revenues.
C
Capital Assets. Assets of long-term character that are intended to continue to be held or used, such as land,
buildings, machinery, furniture and other equipment.
Capital Budget. The appropriation of bonds or operating revenue for improvements to facilities and other
infrastructure.
Capital Improvements. Expenditures related to the acquisition, expansion, or rehabilitation of an element
of the government’s physical plant, sometimes referred to as infrastructure.
Capital Improvements Plan. A plan for capital expenditures to provide long-lasting physical improvements to
be incurred over a fixed period of several future years. The City of Henderson’s City Charter requires annual
454 Packet Page 474
submission of a five-year capital program for City Council acceptance.
Capital Outlay. Expenditures that result in the acquisition of, or addition to, fixed assets.
Cash Basis. A basis of accounting in which transactions are recognized only when cash is increased or
decreased.
Contingency. A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise
budgeted.
Core Service. A principal service or product delivered by a program or department that is necessary to the
successful operation of the city.
D
Debt Service. The amount of interest and principal that a City must pay each year on net direct long-term
debt plus the interest it must pay on direct short-term debt.
Deficit. The excess of an entity’s liabilities over its assets or the excess of expenditures over revenues during a
single accounting period.
Department. A major administrative unit of the City that indicates overall management responsibility for an
operation or a group of related operations within a
functional area. Departments are comprised of divisions, programs, and/or sections.
Depreciation. Expiration in the service life of capital assets attributable to wear and tear, deterioration,
action of the physical elements, inadequacy, or obsolescence.
Division. A functional unit within a department.
E
Encumbrance. The legal commitment of appropriated funds to purchase an item or service. To encumber
funds means to set aside or commit funds for a future expenditure.
Estimated Revenue. The amount of projected revenue to be collected during the fiscal year.
Expenditure/Expense. This term refers to the outflow of funds paid for an asset obtained or goods and
services obtained.
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F
Financial Reserves. An unappropriated source of funding that can be utilized to meet unexpected budgetary
needs.
Fiscal Year. The time period designated by the City signifying the beginning and ending period for recording
financial transactions. The City of Henderson has specified July 1 to June 30 as its fiscal year.
Forfeiture. The automatic loss of property, including cash, as a penalty for breaking the law, or as
compensation for losses resulting from illegal activities. Once property has been forfeited, the City may claim
it, resulting in confiscation of the property.
Full Faith and Credit. A pledge of a government’s taxing power to repay debt obligations.
Full-Time Employee. A full-time employee working 38-40 hours per week and receiving benefits.
Fund. A set of inter-related accounts to record revenues and expenditures associated with a specific purpose.
Fund structure presented below
Governmental Funds
Capital Projects Fund. Capital Projects Funds are used to account for financial resources to be used
for the acquisition or construction of major capital facilities (other than those financed by Proprietary
Funds and Trust Funds).
Debt Service Fund. Debt Service Funds are set up to receive dedicated revenues used to make
principal and interest payments on City debt. They are used to account for the accumulation of
resources for, and the payment of, general obligation and special assessment debt principal, interest
and related costs, except the debt service accounted for in the Special Revenue Funds and Enterprise
Funds.
General Fund. The General Fund is the general operating fund of the City. It is used to account for
all activities of the City not accounted for in another fund.
Special Revenue Fund. Special Revenue Funds are set up as accounts for Federal or State grants legally
restricted to expenditures for specific purposes.
Proprietary Funds
Enterprise Funds Enterprise Funds are used to account for operations including debt service
(a) that are financed and operated in a manner similar to private businesses – where the intent of
the government body is that the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis is financed or recovered primarily through user
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charges; or (b) where the governing body has
determined that periodic determination of revenues earned, expenses incurred, and/or net income
is appropriate for capital maintenance, public policy, management control accountability, or other
purposes.
Internal Service Funds Internal Service Funds are established to account for an entity that provides
goods and services to other City entities and charges those entities for the goods and services
provided.
Fund Balance. The difference between revenues and expenditures. The beginning fund balance
represents the residual funds brought forward from the previous year (ending balance)
G
Generally Accepted Accounting Principles. (GAAP) Uniform minimum standards for financial accounting and
recording, encompassing the conventions, rules, and procedures that define accepted accounting principles.
General Governmental Revenue. The revenues of a government other than those derived from and retained
in an Enterprise Fund. General Governmental revenues include those from the General, Debt Service, and
Special Revenue Funds.
General Obligation Bonds. Bonds that finance a variety of public projects such as streets, buildings, and
improvements; the repayment of these bonds is usually made from secondary property taxes, and these
bonds are backed by the full faith and credit of the issuing government.
Goal. A statement of direction based on identified strategic priorities. Should be measurable and able to be
achieved in 3 to 5 years.
Grant. A contribution by the State or Federal government or other organization to support a particular
function. Grants may be classified as either categorical or block depending upon the amount of discretion
allowed the grantee.
I
Indirect Cost. A cost necessary for the functioning of the organization as a whole, but which cannot be
directly assigned, such as administrative support, facility maintenance or custodial services.
Inflation. A rise in price levels caused by an increase in available funds beyond the proportion of available
goods.
Infrastructure. Public domain fixed assets including roads, curbs, gutters, sidewalks, drainage systems, lighting
systems, and other items that have value only to the City.
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Interest Income. Revenue associated with the city cash management activities of investing fund balances.
Intergovernmental Resources. Funds received from federal, state, and other local government sources in the
form of grants, shared revenues, and payments in lieu of taxes.
Inter-fund Transfer. The movement of monies between funds of the same governmental entity.
Inter-local Agreement. A contractual agreement between two or more governmental entities.
Internal Services Charges. The charges to user departments for internal services provided by another
government agency, such as data processing, equipment maintenance and communications.
L
Levy. To impose taxes for the support of government activities.
Long-Term Debt. Debt with a maturity of more than one year after the date of issuance.
M
Major Fund. Funds whose revenues, expenditures/ expenses, assets, or liabilities (excluding extraordinary
items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5
percent of the aggregate amount for all governmental and enterprise funds. These represent the City's most
important funds and include the General Fund.
Mandate. A requirement from a higher level of government that a lower level of government perform a task
in a particular way or standard.
Mission Statement. The statement that identifies the particular purpose and function of an entity.
Modified Accrual Basis. The basis of accounting under which revenues are recognized when measurable and
available to pay liabilities. Expenditures are recognized when the liability is incurred except for interest on
long-term debt which is recognized when due, and the noncurrent portion of accrued vacation and sick
leave, which is recorded in general long-term debt.
Municipal Code. A collection of laws, rules, and regulations that apply to the City and its citizens.
N
Neighborhood Services. A program developed to promote and strengthen the stability, development,
revitalization, and preservation of neighborhoods through community-based problem solving.
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Net Position. Governmental financial statement reporting for proprietary funds where assets plus deferred
outflows of resources, less liabilities, less deferred inflows of resources, equals net position program.
O
Objective. A specific measurable and observable result of an organization’s activity, which advances the
organization toward its goal.
Ombudsman. One that investigates reported complaints, reports findings, and helps to achieve equitable
settlements.
OPEB. Other post-employment benefits are benefits that an employee will begin to receive at the start of
retirement such as health care and deferred-compensation arrangements.
Operating Budget. The portion of the budget that pertains to daily operations that provide basic
governmental services. The operating budget contains appropriations for expenditures such as personnel,
supplies, utilities, materials, travel, and fuel.
Operating Expenses. The cost for personnel, materials, and equipment required for a department to
function.
Operating Revenue. Funds that the government receives as income to pay for ongoing operations, including
such items as taxes, user fees, interest earnings, and grant revenues. Operating revenues are used to pay for
day-to- day services.
P
Pay-As-You-Go Financing. A term used to describe a financial policy by which the capital program is financed
from current revenues rather than through borrowing.
Per Capita. A measurement of the proportion of some statistic to an individual resident determined by
dividing the statistic by the current population.
Performance Budget. A budget that focuses upon departmental goals and objectives rather than line items,
programs, or funds. Workload and unit cost data are collected in order to assess the effectiveness and
efficiency of services. Typical measures collected might include average emergency response time for fire.
Performance Measure. Data collected to determine how effective and/or efficient a program is in achieving
its objectives.
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REFERENCE MATERIAL - GLOSSARY
Policy. A plan, course of action or guiding principle designed to set parameters for decisions and actions.
Prior Year Encumbrances. Obligations from previous years in the form of purchase orders or contracts that
are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be
encumbrances when the obligations are paid or otherwise terminated.
Potable Water. Water that is fit to drink.
Program. Group activity, operations, or organizational units directed to attaining specific objectives and
achievements and budgeted as sub-units of a department.
Program Budget. A budget that allocates money to the functions or activities of a government rather than
to specific items of cost or to specific departments.
Property Tax. A levy upon the assessed valuation of the property within the City of Henderson upon each
$100 of assessment.
R
Retained Earnings. An equity account reflecting the accumulated earnings of an enterprise or internal service
fund.
Revenue. Funds that the government receives as income. It includes such items as tax payments, fees from
specific services, receipts from other governments, fines, forfeitures, grants, shared revenues, and interest
income.
Revenue Bonds. Bonds usually sold for constructing a project that will produce revenue for the government.
That revenue is pledged to pay the principal and interest of the bond.
Reserve. An account used to indicate that a portion of a fund’s assets are legally restricted for a specific
purpose and is, therefore, not available for general appropriation.
Resolution. A special or temporary order of a legislative body requiring less legal formality than an ordinance
or statute.
Resources. Total amounts available for appropriation including estimated revenues, fund transfers, and
beginning balances.
Risk Management. An organized attempt to protect a government’s assets against accidental loss in the most
economical method.
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REFERENCE MATERIAL - GLOSSARY
S
Sales Tax. Tax imposed on the taxable sales of all final goods.
Source of Revenue. Revenues are classified according to their source or point of origin.
Special Assessment. A compulsory levy made against certain properties to defray part or all of the cost of a
specific improvement or service deemed to primarily benefit those properties.
Strategic Plan. A document outlining long-term goals, critical issues, and action plans that will increase the
organizatio n’s effectiveness in attaining its vision, priorities, mission, goals and objecti ves.
System Development Charge. That portion of the connection charge that is determined to be the
customer’s proportionate share of the cost of providing transmission, pumping, and storage facilities required
to serve the various distribution areas or zones within the system.
T
Tax Levy. The resultant product when the tax rate per $100 is multiplied by the tax base.
Taxes. Compulsory charges levied by a government for the purpose of financing services performed for the
common benefit of the people. This term does not include specific charges made against particular persons
or property for current or permanent benefit, such as special assessments.
Transfers In/Out. Amounts transferred from one fund to another to assist in financing the services for the
recipient fund.
U
Undesignated Fund Balance. The portion of a fund’s balance that is not legally restricted for a specific purpose
and is available for general appropriation.
Unencumbered Balance. The amount of an appropriation that is neither expended nor encumbered. It is
essentially the amount of money still available for future purposes.
Unfunded Pension Liability. The difference between assets in a pension fund and the amount of benefits
the fund is required to pay out in the long-term.
Unreserved Fund Balance. The portion of a fund’s balance that is not restricted for a specific purpose and is
available for general appropriation.
Useful Life. The period of time that a fixed asset is able to be used. This can refer to a budget period of time
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REFERENCE MATERIAL - GLOSSARY
for an equipment class or the actual amount of time for a particular item.
User Charges. The payment of a fee for direct receipt of a public service by the party who benefits from the
service.
W
Workload Measure. A unit of work to be done (e.g., number of permit applications received).
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Department Name: Public Works
Cost Center: 5101
For Agenda of: June 4, 2019
Placement: Business Item
Estimated Time: 20 Minutes
FROM: Daryl Grigsby, Director of Public Works
Prepared By: Timothy Scott Bochum, Deputy Director of Public Works/Parking Services
Manager
SUBJECT: 2019 PARKING FUND REVIEW
RECOMMENDATION
1.Review and accept the 2019 Parking Fund Review; and
2.Approve the Parking Enterprise Fund budget for 2019-21; and
3.Adopt a Resolution (Attachment D) deferring previously approved 10 Hour Meter Permit
increases until July 1, 2020, and approve the amount at $70 a permit; and
4.Adopt a Resolution (Attachment E) increasing the fine and forfeiture amounts for Residential
Permit District parking violations to $40 a violation.
DISCUSSION
This report presents the 2019-21 Parking Fund Review and corresponding Parking Fund
Analysis. It highlights adjustments made to the Parking Fund since adoption of the 2018-19
Financial Plan Supplement, the 2018-19 Mid-Year budget and information given to Council as
part of the Strategic Budget Direction session on April 16, 2019. Attachment A is the full Fund
Review for the Parking Fund for FY 2019-21. An abridged version of the Parking Fund is in the
Business Activities section of the 2019-21 Financial Plan.
Overview
2018-19 was a busy year for Parking Services. Major projects included retrofitting all parking
structure’s access and revenue control equipment, installing a license plate recognition system,
installing 19 new EV charging stations in the Marsh Street Structure and conducting a major
structural assessment and maintenance plan for all parking structures. Lastly, the Parking
Division is finalizing a project to model parking demand and supply in the Downtown and held a
study session with the City Council in November 2018. The 2019-21 Financial Plan includes
construction of the Palm Nipomo Structure and investments in parking structure maintenance.
Parking Fund Revenues
The Parking Fund Review (Attachment A) provides an in-depth look at changes in financial
position, revenue and operational assumptions, an update on major activities and programs, and
incorporates key financial impacts.
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Figure 1 – Parking Revenues (does not include debt financing)
Street meters represented 29.7% of Fund revenues in FY 2017-18 and are projected to grow to
36.8% in FY 2020-21 when the next systemwide rate increase is scheduled. Parking Structure
usage fees were 27.1% of the Fund in FY 2017-19 and are projected to rise to 28.4% in FY 20-
21.Consistent with previously adopted policies, Parking Fund Revenue sources assume a
conservative annual usage growth rate over the entire projection period. It is anticipated parking
usage growth rate will occur as the two hotel projects in downtown open for business.
Operating Program Expenses
There are two primary operating costs for the Parking Fund. Direct operating costs fund staffing,
contract services and other operating costs as well as retirement contributions. Indirect costs to
the Parking Fund consist of reimbursement to the General Fund for general government services
to support parking programs.
Figure 2 – Parking Operating Expenses
)
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Proposed Changes to Operating Programs
There are several proposed significant operating budget changes for the Parking Fund.
Significant Operating Budget Changes One-Time Ongoing
2019-20 2020-
21
2019-20 2020-21
1 Public Education & Community Engagement $55,000 $35,000
2 Parking Structure and Lot Security Services Enhancement $60,000 $60,000
3 Augment Parking Structure Cleaning $26,000 $26,000
4 Transportation Electrification Plan $10,000
5 CIP Engineering Services $21,138 $22,119
6 Downtown PBID $24,000 $24,000
Parking Fund Subtotal $10,000 $0 $186,138 $167,119
Capital Improvement Plan
Attachment C to this report lists all CIP for the Parking Fund for the two-year financial plan.
Approximately $35.5 M in projects are to be funded by the Parking Fund. Most notable will be
the construction of the Palm-Nipomo Parking Structure estimated at $28.6 M and scheduled to
begin in FY 2020-21. This will be funded from a $8.6 M contribution from working capital and
$20 M in proceeds from debt financing or bond issuance.
The recommended CIP also makes significant reinvestment into maintenance of existing assets,
including annual investments in the parking structures to rehabilitate aging infrastructure and
extend the useful life of the facilities. It should be noted this annual investment is a new program
and new obligation of the Parking Fund and is the result of an extensive analysis of the current
and future maintenance needs of each parking structure. The forecast does not include capital or
ongoing costs associated with the development of a public-private parking structure east of Santa
Rosa on Higuera at Toro. Funding for that project will need additional consideration and will
require additional revenue sources not currently forecast in this fund review.
Debt Obligations
Based upon projections by the City’s financial consultants, debt payment for the Palm Nipomo
project will begin in 2022. Staff is pursuing additional information on borrowing alternatives for
the project and will be returning to Council with borrowing recommendations by end of calendar
year 2019. Based upon projected interest rates the annual debt payment for Palm -Nipomo will be
approximately $1.4 M each year. Debt payment for FY 2019 will be $1.026 million but drops to
$855K for the next two years.
Parking Fund Analysis
The fiscal condition of the Parking Fund is currently sound and will remain so through the end of
the Financial Plan. The Fund ended FY 2017-18 with $14,739,786 in year end working capital.
The Fund has accumulated funding to begin construction of the Palm-Nipomo Parking Structure
in 2020. Parking revenue is projected to cover all operating costs for each year of the fund
forecast. Capital costs, however, are not fully covered each year and working capital is required
to balance the expenses and the debt financing to fund the Palm-Nipomo project.
Table 1 – SOBC Requests
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The significant annual investment in parking structure maintenance rehabilitation is projected at
$900,000 each year and can be accommodated within current revenue forecasts. When the
annual debt payment for the Palm-Nipomo Structure begins in FY 2022-23 the Fund’s expenses
over revenues begin to be impacted. Although the Five-Year Forecast shows the Fund ending the
FY 23-24 fiscal year with positive working capital that meets the 20% operating reserve
requirements, annual expenses over revenues are such that the Fund working capital declines
each year. Additional rate changes may be necessary in the out years, possibly as soon as FY
2023-24, if this trend continues.
Proposed Revisions to Parking Rates and Fine Amounts
The forecast includes the Council approved multi-year plan to modify the rates for parking
meters, structures, and most parking permit types. These rate changes were set by Council at its
Parking Enterprise Fund review in 2017. The next scheduled change is set for July 1, 2019 when
the 10-Hour meter permit cost is set to increase to $80/month.
Figure 3 – Annual Expenses and Revenues
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Adopted Parking Rate Changes Effective Jan.1,
2018
Proposed
effective July
1, 2019
Proposed
effective July 1,
2020
Parking Meters (hourly):
Tier 1 (Super Core) $ 1.75 $ 2.00
Tier 2 (Core) $ 1.50 $ 1.75
Tier 3 (10-hour meters) $ 1.00 $ 1.25
Tier 3 - 10 Hour Meter Permit $ 60.00 $ 60.001 $ 70.00
Tier 3 - 10 Hour Meter Permit (quarterly) $180 $1801 $210
Parking Structures
Hourly/Daily Max: $1.25/$12.50 $1.50/$15.00
Monthly/Quarterly: $85/$255 $95/$285
DROP Program (overnight parking for DT
residents only)
$ 125 $ 145
Annual Permits:
Residential Parking Permit $ 15 $ 20
Downtown Residential Permit $ 15 $ 20
OTHER:
Validated Parking (businesses only) –
block of 100 hours
$ 75 $ 90
Note 1: Reflects staff recommendation to defer increase on July 1, 2019 until July 2020
Staff is recommending that the Council defer this increase in the 10-hour meter permit cost for
one year and reduce the amount it is increased as part of the systemwide increases set for July 1,
2020 to $70.00. Staff believes this is a prudent recommendation in order to rebuild demand of
these permits, particularly as the two new hotels may bring additional employees to downtown
and we approach the start of the Palm-Nipomo Parking Structure.
Fines & Forfeitures
The Rate changes adopted by Council in June of 2017 did not include systemwide fine and
forfeiture changes for the Parking Fund. As part of the two-year Financial Plan, no significant
fine increases are projected in the two years of the Financial Plan. Staff is proposing Council
adopt one Fine modification for January 1, 2020. This change is a recommendation to increase
the Residential Permit violation fine from $38 to $40.
Revised Recommendation for rate
Changes
Current Proposed
effective
January 1, 2020
Parking Fines:
Residential District Violation $38 $40
Table 2 – Rate Changes
Table 3 – Proposed Residential Permit Fine Increase
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Complaints regarding long term parking in neighborhoods and violators in the residential
districts has increased in the last two years which coincide with Cal Poly’s enactm ent of the
Freshman prohibition of bringing vehicles to campus. Unfortunately, even with enhanced
enforcement, violations continue to occur. Increasing the fine for residential permit areas is
considered a good first step in addressing some of the violation issues and the marginal $2
increase is reasonable.
Staff considered raising this violation to $45 however determined that increase would be more
appropriate as part of the upcoming systemwide fine and forfeiture review or as part of the
Parking and Access Management Plan update, to be completed in FY 2019-20.
Policy Context
The City Charter and various budget policies require the City Council to consider financial
trends and to evaluate parking rates, fines and forfeitures and adopt a budget for the next fiscal
year.
Public Engagement
On April 16, 2019 the City Council received presentation on the Strategic Budget Direction
including the 5 Year Forecasts for the General Fund and the Parking Fund was discussed in this
context.
Staff also participates as part of the Downtown SLO Parking and Access Committee and has
apprised them of the budget proposal, capital projects and other issues associated with the annual
fund review.
CONCURRENCE
The City’s Finance Department concurs with the recommended action.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action, because
the action does not constitute a “Project” under CEQA Guidelines Sec. 15278.
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FISCAL IMPACTS
Budgeted: Yes, Budget Year: FY 19-20 and FY 20-21
Funding Identified: Yes
Attached to this report is a detailed analysis of the Parking Fund revenues, expenditures,
and changes in financial position (Attachment B). The 2019 Parking Fund Analysis includes
the key assumptions used in preparing Fund projections. W ith the proposed rate increases, the
analysis presented to Council in this report and in the Preliminary 2019-21 Financial Plan,
demonstrate sufficient funds to support operations, capital projects, and debt service needs
of the Parking Fund.
ALTERNATIVES
Council, at its discretion, can approve all or part of the 2019 Parking Fund Review. Staff
believes that the services, operating programs, and CIP components of the Parking Fund
represented are consistent with prior policy/program direction of the City Council and required
for compliance with state and federal laws. Therefore, not approving the entire Water Fund
Review is not recommended.
Attachments:
a - 2019 Parking Fund Review
b - draft Fund Analysis
c - 5 Year Parking Fund CIP
d - Resolution - Deferral of 10 Meter Permit Increases
e - Resolution - Fine Increase for Residential Permit Districts
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PARKING FUND
REVIEW
2019
June 4, 2019
City of San Luis Obispo
Public Works Department
Parking Services
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| Parking and Access Services
The City's parking and access management program is
designed to provide critical access to parking facilities
throughout the City, as it relates to neighborhood parking
districts and the downtown area. Parking, access and traffic
flow are interrelated in our city and parking plays an
important role in the successful operations of our
infrastructure. The Parking Division works with several
stakeholders including businesses, residents, Cal Poly,
motor vehicle operators and visitors to meet diverse parking
and access needs. The Division promotes services through
direct education, engineering, and enforcement efforts that
strive to balance the high demand for access to areas that
have high competition for access to limited space.
| Overview
The City of San Luis Obispo’s Parking Services are administered, serviced, and maintained by the Public Works
Department’s Parking Division. The financials are recognized as an enterprise fund as all facets of the operation
and maintenance of capital assets are financed through rates charged for services.
The Parking Division is responsible for:
Operating Program Number of
Employees
Core Function
Parking Administration 5 Oversight of 22 employees, capital projects, engineering,
safety, and overall fund administration.
Parking Enforcement 4.0 Provides daily education, enforcement and parking assistance
in the downtown area and in the residential neighborhoods of
the City.
Parking Structures operations and
Maintenance
12 Provides daily management and maintenance of the three
parking structures with 1,177 parking spaces that are
operated 7 days a week 362 days a year. In 2019, 19 EV
Charging stations were brought online in the Marsh Street
Structure.
Parking Meter Services and
Maintenance
1 Provides daily management and maintenance of the 1,690
parking meters and other traffic control devices in public
parking lots and on streets.
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| Key Assumptions
When preparing the budget, the Parking Division analyzes past financial results, reviews upcoming operational
and capital needs, and current and future debt obligations to assess the financial position of the fund for its
continued health. The budget prepared for the two-year financial plan follows a “zero based budgeting” approach,
considering each line item and its future needs anew. Asset condition, infrastructure age, and future capacity
needs are driving factors in determining the Capital Project plan and debt financing evaluations.
The needed revenue is then evaluated based on current rates and income levels, analysis of current parking asset
uses, and effects on future revenue potential to provide a rate recommendation and any needed increases.
Minimum working capital reserve should equal at least 20% of the total Operating Program expenditures
according to the City's fiscal policy and Standard and Poor's rating criteria. Based upon this policy, the minimum
reserve level should be approximately $630,300 for FY 2019-20 and will increase incrementally until 2022 when
the Palm – Nipomo Parking Structure opens.
Consistent with previously adopted policies, Parking Fund Revenue sources assume a very conservative annual
usage growth rate over the entire projection period. The multi-year rate increases approved by Council (thru FY
2020-21) are in accordance with the Fund’s periodic rate adjustment plan. The systemwide rate increases in FY
2020-21 help offset parking resource reductions due to the loss of Lot 14 as well as cost increases for the
construction of the Palm Nipomo project. Based upon projections, additional systematic rate changes will be
required in out years of the fund to meet expenditure needs.
| 2019-20 Financial Plan
REVENUE
As an enterprise fund, the Parking Division finances its operation mainly with rates charged for parking services,
property lease income, and one-time incomes such as Parking In-Lieu payments. According to its mandate, rates
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must be sufficient to cover operation, capital asset improvements and maintenance, debt obligations, and
appropriate reserve levels to keep the fund healthy and prepared for unforeseen and future funding needs.
Revenues are collected from multiple sources which include:
1.User Fees, including parking meter, structure, pass card and parking permits.
2.Fines and forfeitures
3.Parking In-Lieu Fees
4.Property Lease Revenues,
5.Investment and Property Revenue
As illustrated in this Figure 1 the two largest revenue sources for the Fund are Parking Street Meters and Parking
Structures. Street meters represented 29.7% of Fund revenues in FY 2017-18 and are projected to grow to 36.8%
in FY 2020-21 when the next systemwide rate increase is scheduled. Parking Structure usage fees were 27.1% of
the Fund in FY 2017-19 and are projected to rise to 28.4% in FY 20-21.
Consistent with previously adopted policies, Parking Fund Revenue sources assume a very conservative annual
usage growth rate over the entire projection period although usage changes will occur as the two hotel projects
in downtown open for business, Lot 14 closes for construction of the Palm Nipomo Structure and other
construction activities occur. The multi-year system rate increases approved by Council in June 2017 (thru FY20-
21) are represented in the Fund forecast with the exception of the recommendation to defer the 10 Hour Meter
permit increase scheduled for this year. This is discussed in more depth below. Longer term analysis indicates that
additional system wide rates, fine and forfeiture changes will likely be needed (as early as FY 2022 -23) to help
fund projected Fund expenses in the out years of the Fund.
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2017-18 Actual 2018-19 Budgeted 2019-20 Projected 2020-21 Projected
Parking Revenues
Investment and Property Revenues Fines & Forfeitures Parking Meters - Lots
Parking Meters - Street Parking Structures Long Term Parking
Lease Revenues Parking In-Lieu Fees Other Revenue
Figure 1 – Parking Revenues (Does not include proceeds from debt financing)
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*as approved at mid-year Table 1 – Parking Revenues (Top 9 Sources)
Fines & Forfeitures: No significant fine increases are projected in the two years of the Financial Plan. A new
citation processing firm was brought on board in June 2018 and year to date revenue is down from historic. This
is partially attributable to the impacts of staff vacancies and reduction in total citations issued. Staff is analyzing
individual fine changes that may be necessary to address current inconsistencies between various fine amounts
and as necessary, these changes will come as separate recommendations to Council for consideration at a later
time.
Parking Meter - Streets: Revenue attributable to street meters will remain consistent with current trends. The
Fund will see an increase across. Adopted rate increases will see meter rates increase across the board in FY 2020-
21 with the Super Core/Core/10 Hr. meters going to $2.00/hr., $1.75/hr., and $1.25/hr. respectively on July 1,
2020.
Parking Meter - Lots: There will be two significant changes to the parking meter lot revenue forecast of the Fund.
First, there will be a reduction in parking meter fees due to the conversion of 19 spaces in Lot 4 to EV Charging
Stations. This will be offset by a small bit of new charging revenue that will be recorded in the “Other Revenue”
category of the Fund to monitor energy use and cost coverage. Overall, it is estimated that the annual net change
to the Parking Fund for the EV conversion will be an approximate $35,000 reduction in meter fees for the Fund.
Secondly, revenues associated with Lot 14 will go away in December 2020 when the Palm-Nipomo Parking
Structure commences construction. This results in approximately $24,000 in reduced Fund Revenue.
Parking Structures: Parking structure usage will remain consistent with current occupancy rates except there will
be an across the board increase in revenues starting in FY 20-21 due to the systemwide rate increase already
approved by Council.
Long Term Parking: The Fund projection includes one modification to the existing approved Council rate change.
10-Hour permit rate increases were approved in July 2017 and effective January 1, 2018. This was done at a time
when these permits were in high demand and were selling out each month. Subsequent to the rate increase
demand for the 10 Hr. permit has softened. Based upon this reduction in utilization staff is recommending that
the previously adopted rate increase set for July 1, 2019 of this year be deferred one year to allow demand for
these permits to increase. The forecast assumes that the current monthly rate for the 10 -Hr. permit will remain
at the current $60/month until July 1, 2020 when it will increase to $70. All other long-term rate increase schedule
for July 2020 are projected in the Fund analysis. As part of those rate changes, the base hourly rates of the
Revenues (top 9) 2017-18
Actual
2018-19
Budgeted*
2019-20
Projected Chg. 2020-21
Projected Chg.
Investment and Property Revenues 87,232 55,000 62,700 14% 61,100 -3%
Fines & Forfeitures 620,665 617,000 631,700 2% 647,400 2%
Parking Meters - Lots 153,667 166,000 119,400 -28%124,400 4%
Parking Meters - Street 1,622,194 1,942,300 1,974,100 2% 2,289,700 16%
Parking Structures 1,484,631 1,473,600 1,473,600 0% 1,768,300 20%
Long Term Parking 863,916 994,600 890,000 -11%1,008,100 13%
Lease Revenues 480,222 505,000 283,100 -44%283,100 0%
Parking In-Lieu Fees 149,215 20,600 20,600 0% 20,600 0%
Other Revenue 7,382 100 13,300 N/A 13,300 N/A
Total Revenues: 5,469,124 5,774,200 5,468,500 6,216,000
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structures will be increasing to $1.50/hour and monthly costs will increase from $85 to $95/mo.
Lease Revenues: Lease revenues for the Parking Fund are projected to decreased substantially in FY 2019-20 and
beyond primarily due to the reprogramming of the Hotel Cerro (Garden Street Terraces) annual lease revenue
from the Parking Fund to the General Fund to augment downtown police services. This amount represents
approximately $227,000 per year in lease revenue reductions for the Fund.
All other property leases will remain consistent with existing amounts throughout the forecast except that lease
revenue associated with the property at 614 Monterey will discontinue in FY 2021 when the Palm-Nipomo
project begins construction.
Parking in Lieu Fees: Limited Parking In-Lieu fees have been programed as this revenue is unpredictable and
inconsistent from year-to-year.
| FUND EXPENDITURES
| Operating Programs
The Parking Division’s operating program costs are summarized below. The summary reflects the operating
program budget amounts for the 2019-21 Financial Plan. The two primary operating costs for the Parking Fund
consist of direct operating costs that fund staffing, contract services, other operating costs as well as retirement
contributions. Indirect costs to the Parking Fund consist of reimbursement to the General Fund for general
government services to support parking programs. These amounts are calculated annually in the City’s Cost
Allocation Plan.
Figure 2 – Parking Expenditures
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2017-18 Actual 2018-19 Budgeted 2019-20 Projected 2020-21 Projected
Total Operating Expenditures
Operating Programs General Government Total Expenses:
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Operating Expenses 2017-18
Actual
2018-19
Budgeted
2019-20
Projected
2020-21
Projected
Operating Programs $2,375,980 $2,225,600 $2,430,200 $2,484,400
General Government $622,189 $535,400 $537,300 $548,000
Total Expenses: $2,998,169 $2,761,000 $2,967,500 $3,032,400
Table 2 – Parking Expenses
Proposed Changes to Operating Programs
There are several proposed significant operating budget changes for the Parking Fund.
•An increase in contract services of $55,000 in FY 2019-20, $35,000 in FY 2020-21 and thereafter for
additional Public Education and Community Engagement for parking and access services to help improve
utilization of parking resources and demand reduction activities. A significant upgrade to the City webpage
and public information portal will be complete in year one.
•An increase of $60,000 per year for additional security services in the structures and lots to address safety
issues during the overnight periods not currently patrolled.
•An increase of $26,000 per year in contract services for additional structure cleaning that will include
“deep” cleaning of the structures to address human waste and other anti-social activities. This will fund
3-4 deep cleanings per year.
•A one time only expense of $10,000 in FY 2019-20 to participate in the Transportation Electrification Plan
preparation.
•Funding $21,138 in FY 2019-20 and $22,199 in FY 2020-21 to increase CIP Engineering services to assist in
project delivery.
•Setting aside up to $24,000 if the Downtown PBID is approved for the Parking Fund’s responsible annual
contribution for the program.
Significant Operating Budget Changes One-Time Ongoing
2019-20 2020-21 2019-20 2020-21
1 Public Education & Community Engagement $55,000 $35,000
2 Parking Structure and Lot Security Services Enhancement $60,000 $60,000
3 Augment Parking Structure Cleaning $26,000 $26,000
4 Transportation Electrification Plan $10,000
5 CIP Engineering Services $21,138 $22,119
6 Downtown PBID $24,000 $24,000
Parking Fund Subtotal $10,000 $0 $186,138 $167,119
Table 3 – SOBC Requests
| Capital Improvement Plan
The City of San Luis Obispo Parking Division maintains a large and diverse infrastructure including:
▪Three public parking structures with 1,177 spaces
▪Marsh Street (520 spaces)
▪919 Palm Street (242 spaces)
▪842 Palm Street (415 spaces)
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▪1,147 On Street parking spaces metered for general public use
▪Signs and markings for 10 Residential Parking Permit Districts with over 880 households and over
1,775 annual permits processed
Capital expenses are forecast based on infrastructure maintenance and repair history, individual project budget
estimates, regulatory requirements, and projected changes in relation to anticipated new development. The
Parking Fund has been setting aside funding each year for the development of the Palm-Nipomo Parking Structure
which will begin construction in 2020.
Capital Improvement Plan Project Expenses 2019-24
Project budget estimates in the capital plan forecast include inflationary adjustments assuming a moderate
increase in material costs over time. The 2019-24 five-year CIP program continues reinvestments in the City’s
parking assets but also begins significant annual funding to begin the rehabilitation of the three parking structures
to extend their useful lives. The City completed a Condition Assessment and Management Plan (CAMP) of all
parking structures in 2018. That plan estimated that up to $10 million would be necessary in the next 10 years to
maintain and enhance the structures at adequate levels. The proposed CIP budget invest approximately
$1,000,000 in both FY 2019-20 and FY 2020-21 begin the CAMP projects.
The Palm Nipomo parking structure construction cost is estimated at $28.6 million in FY 20 -21. A $8,600,000
contribution from working capital and $20,000,000 proceeds from debt financing or bond issuance will be used to
fund this amount. Final amounts will be determined as the project construction documents move forward in the
City process. These amounts will change based upon revised project estimates and final ratio of capital outlay
versus debt financing amounts.
The forecast does not include capital or ongoing costs associated with the development of a public-private parking
structure east of Santa Rosa on Higuera at Toro. Funding for that project will need additional consideration and
will require additional revenue sources not currently forecast in this fund review.
The following additional projects are proposed in the Plan:
1.Parking Lot Acquisition & Lease - Includes $250,000 set aside per year to accumulate funding for
additional property parking lot acquisition for long term demand needs. This amount will be available to
help secure potential shared parking arrangements if developed.
2.Telemetry Communication Upgrades: Wayfinding Program – Includes $50,000 in FY 2019-20 and $7,500
thereafter to investigate and install wayfinding technology for parking resources in Downtown and other
locations in the City.
3.Parking Meter Replacements of Existing Credit Card Meters – Invests $100,000 in both FY 2019-20 and
FY 20-21 to begin upgrade/replacement of existing meters with credit capable meters that are now at the
end of their useful life.
4.Parking Meter Upgrades to Credit Card capable meters – Invests $157,000 in both FY 2019-20 and FY 20-
21 to begin upgrade/replacement of older coin meters with credit card capable meters that accept other
forms of payment.
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5.Managed Parking Expansion – Invests $25,000 in both FY 2019-20 and FY 20-21 to fund managed parking
expansion projects including residential permit parking districts, new time restrictions in areas such as
Downtown and other managed programs that may result from the update to the Parking and Access
Management Plan.
6.Small Capital Projects – Invests $50,000 in both FY 2019-20 and FY 20-21 to fund small capital projects
that arise in public lots, streets and the structures. Typically, these projects consist of small projects such
as sign replacements and upgrades, paint modifications and replacement of various parking assets.
7.Fleet Replacement – does not include replacement of any vehicles in the two years of the Financial Plan
however vehicle replacement may be expedited based upon the Electrification Masterplan that will be
conducted in FY 2019-20.
8.Misc. Finance and Information Technology capital projects that have associated Parking Fund support will
occur in the projected years.
Figure 3 – Annual CIP Expenditures
| Debt Service
The following is a summary of the current debt obligations of the Parking Fund.
1.Debt service for the Marsh Street Expansion Project (CIEDB State Loan) amounts to $417,027 in
2019-20 and $416,071 in 2020-21. This debt expires in 2031.
2.The City refinanced certain debt services in 2018. As part of that refinance, lease revenue bonds
used to fund the construction of the 919 Palm Street parking structure were refinanced. The new
debt finance lasts through 2039 and reduced the annual debt payment for this project. The debt
payments for this debt are $439,800 in FY 2019-20 and $439,400 in FY 2020-21.
S1,552,220
S1,251,660
S1,282,500
S1,286,780
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3.Debt service for the Palm-Nipomo Parking Structure is projected at $20,000,000 in FY 2020-21 to
coincide with the start of construction in December 2020.
4.Based upon projections by the City’s financial consultants, debt payment for the Palm Nipomo
project will begin in 2022-23. Staff is pursuing additional information on borrowing alternatives for
the project and will be returning to Council with borrowing recommendations in the next 6 months.
Based upon projected interest rates the annual debt payment for Palm-Nipomo will be
approximately $1.4 million each year.
5.
Debt Payments 2017-18
Actual
2018-19
Budgeted
2019-20
Projected
2020-21
Projected
Marsh Expansion (CIEDB State Loan) $407,375 $417,955 $417,030 $416,070
919 Palm (2006 Lease Revenue Bonds) $376,902
919 Palm (2018 Refunding Bond) $608,180 $439,800 $439,400
Total Expenses: $784,277 $1,026,137 $856,830 $855,470
Table 4 – Debt Payments
| Fund Summary
The fiscal condition of the Parking Fund is currently sound and will remain so through 2021-22. The Fund ended
FY 2017-18 with $14.739,786 in year end working capital. The Fund has accumulated funding to begin
construction of the Palm-Nipomo Parking Structure in 2020. Parking revenue is projected to cover all operating
costs for each year of the fund forecast however capital costs are not fully covered each year and working capital
is required to balance the expenses as well as major debt financing to fund the Palm-Nipomo project.
Figure 4 – Annual Revenue & Expenditures
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
2017-18 Actual 2018-19 Budgeted 2019-20 Projected 2020-21 Projected
Annual expenses and Revenues
Total Expenses:Total Revenues:
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The significant annual investment in parking structure rehabilitation ($900,000 each year) can be accommodated
within current revenue forecasts however when the annual debt payment for the Palm-Nipomo Structure begins
in FY 2022-23 the Funds expenses over revenues begins to be impacted. Although the Five-Year Forecast shows
the Fund ending the FY 2023-24 fiscal year with positive working capital that meets the 20% operating reserve
requirements, annual expenses over revenues are such that the Fund capital is reducing each year.
Annual Expenses 2017-18
Actual
2018-19
Budgeted
2019-20
Projected
2020-21
Projected
Salaries & Benefits 1,464,216 1,282,889 1,287,835 1,342,062
Operating Expenditures $911,764 $942,726 $1,142,374 $1,142,374
Capital Projects $62,565 $3,542,563 $1,552,200 $30,114,000
Debt Service $784,300 $1,026,100 $856,800 $855,500
General Government $622,189 $535,415 $537,277 $548,023
Total Expenses: 3,845,034 7,329,693 5,376,486 34,001,959
Table 5 – Total Expenses Parking Fund
Annual Revenues 2017-18
Actual
2018-19
Budgeted
2019-20
Projected
2020-21
Projected
Service Fees, Fines, Forfeitures & Other 5,396,840 5,649,000 5,342,900 6,044,660
Debt Financing
-
- - 20,000,000
Total Revenues: 5,396,840 5,649,000 5,342,900 26,044,660
Table 6– Total Revenues (includes reductions for credit card surcharges)
Reserve Requirement 2019-20
Projected
2020-21
Projected
2021-22
Projected
2022-23
Projected
20% Operating Reserve Requirement 593,497 606,492 630,072 641,339
Year End Working Capital 12,659,504 4,535,026 5,085,968 4,333,066
Reserve Requirement Satisfied? Yes Yes Yes Yes
Table 7 – 20% Operating Cost reserve Verification
| MAJOR ACTIVITIES AND PROGRAMS
2018-19 Update - Accomplishments
1.EV Charging Stations
The City completed installation of 19 public electric vehicle (EV) charging stations in February 2019
with a grand opening on Earth Day. These 19 EV spaces are located in Lot 4 beneath the Marsh
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Street Parking Structure and is the largest public charging station location between Santa Monica
and the Bay area. Services are contracted through ChargePoint, Inc. the largest EV fueling service in
the nation.
Figure 5 – EV Charging Station in Marsh Street Structure
2.Parking Access and Revenue Control (PARC’s) Project
The City undertook replacement of the access control and revenue equipment in all three parking
structures which commenced in August 2018. The project is mostly complete with new gating
equipment installed and the central computer system live. The City began pay on foot operation in
the Marsh Street Structure in May and after the testing period will be expanding to the other two
structures.
Figure 6 – New Parking Access and Revenue Control (PARC’s) Equipment
3.License Plate Recognition
The City purchased and installed two license plate recognition (LPR) systems for the parking services
division to assist with parking enforcement - primarily overtime violation. This system is now a
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critical piece of equipment for daily enforcement since a recent Federal Court decision that restricts
certain uses of marking tires for overtime enforcement purposes.
Figure 7 – License Plate Recognition System
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| PARKING RATES
The forecast includes the Council approved multi-year plan to modify the rates for parking meters, structures, and
most parking permit types. These rate changes were set by Council at its Parking Enterprise Fund review in 2017.
The next scheduled change is set for July 1, 2019 when the 10-Hour meter permit cost is set to increase to
$80/month. This rate increase was set at a time when these permits were being sold out each month due to high
demand. Since that time, demand for these permits have dropped and they are not as sought after as before. As
a result, expected revenues from the January 2018 increase in these permit rates has not been fully achieved.
Table 8 – Existing Council Approved Rate and Fine Changes
Currently Adopted Parking Rate
Changes
Effective
Jan.1, 2018
Proposed
effective July
1, 2019
Proposed
effective July
1, 2020
Parking Meters (hourly):
Tier 1 (Super Core) $ 1.75 $ 2.00
Tier 2 (Core) $ 1.50 $ 1.75
Tier 3 (10-hour meters) $ 1.00 $ 1.25
Tier 3 - 10 Hour Meter Permit $ 60.00 $ 80.001 $ 90.001
Parking Structures
Hourly/Daily Max: $1.25/$12.50 $1.50/$15.00
Monthly/Quarterly: $85/$255 $95/$285
DROP Program (overnight parking for
DT residents only)
$ 125 $ 145
Annual Permits:
Residential Parking Permit $ 15 $ 20
Downtown Residential Permit $ 15 $ 20
OTHER:
Validated Parking (businesses only) –
block of 100 hours
$ 75 $ 90
Parking Fines:
Expired Meter $ 40 TBD
Overtime Parking $ 45 TBD
Passenger Loading Zone $ 40 TBD
Parking Space Markings $ 40 TBD
No Permit Lot $ 45 TBD
Residential District $38 TBD
Notes 1) Increase is recommended for deferral (see below)
Staff will be reviewing overall fines and forfeitures in the next six months and will return to Council with potential
changes that will coincide with the systemwide rate changes scheduled for July 2020.
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Staff is recommending that the Council defer this increase in the 10-hour meter permit cost for one year and
reduce the amount it is increased as part of the systemwide increases set for July 1, 2020 to $70.00. Staff believes
this is a prudent recommendation in order to rebuild demand of these permits particularly as the two new hotels
open that may bring additional employees to downtown and we approach the start of the Palm-Nipomo Parking
Structure.
The current forecast includes additional rates changes that will be necessary to balance the budget and deliver
the necessary revenue to complete the Palm-Nipomo project and other CIP requirements. These rate changes will
be necessary in the out years of the 5 Year Forecast and are not necessary for Council to adopt as part of the FY
2019-21 Financial Plan. It is anticipated that across the board rate changes will likely be necessary about every 3
years to help offset increased costs of services and the capital needs of parking services.
Table 9 – Revised Recommendation for 10 Hr. Permit Fees
Emerging technologies including methods of parking payments will likely have effects on how the City collects
payments for parking services in the future. As such, deferring rate change decisions at this time is prudent to
allow additional assessment of alternatives. This includes investigation of ways to pay for the Higuera Street
Structure project if the Council decides to move forward with that project and additional revenue sources are
needed.
Fines & Forfeitures
The Rate changes adopted by Council in June of 2017 did not include systemwide fine and forfeiture changes for
the parking fund. As part of the two-year Financial Plan, no significant fine increases are projected in the two years
of the Financial Plan however staff is proposing Council adopt one Fine modification for January 1, 2020. This
change is a recommendation to increase the Residential Permit violation fine from $38 to $40.
Table 10 –Recommendation Residential Permit District Fee Change
Complaints regarding long term parking in neighborhoods and violators in the residential districts has increased
in the last two years which coincide with Cal Poly’s enactment of the Freshman prohibition of bringing vehicles to
campus. The City has worked with Cal Poly on this issue and conducts both education and enforcement to
reinforce the policy. Unfortunately, even with enhance enforcement, violations continue to occur. Increasing the
Revised Recommendation for Fine
Changes
Effective
Jan.1, 2018
Proposed
effective July
1, 2019
Proposed
effective July
1, 2020
Parking Meters (hourly):
Tier 3 - 10 Hour Meter Permit $ 60.00 $ 60.00 $ 70.00
Revised Recommendation for rate
Changes
Current Proposed effective
August 1, 2019
Parking Fines:
Residential District $38 $40
Packet Page 504
City of San Luis Obispo 2019 Parking Fund
Page 15
fine for residential permit areas is considered a good first step in addressing some of the violation issues and the
marginal $2 increase is reasonable.
Staff considered raising this violation to $45 however determined that increase would be more appropriate as
part of a systemwide fine and forfeiture review that will be conducted as part of the Parking and Access
Management Plan update to be completed in FY 2019-20.
Packet Page 505
PARKING FUND ANALYSIS
Projected Projected Projected Projected Projected
FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23 FY 2023‐24
REVENUES BY TYPE
Investment and Property Revenues 55,000 64,400 63,200 22,200 24,600 19,000
Fines and Forfeitures 617,000 631,700 647,400 647,400 647,400 647,400
Service Charges:
Ser Parking Meter ‐ Lots 166,000 119,400 124,400 110,400 110,400 125,800
Ser Parking Meter ‐ Streets 1,942,300 1,974,100 2,289,700 2,289,700 2,289,700 2,605,300
Ser Parking Structure Collections 1,473,600 1,473,600 1,768,300 1,768,300 2,015,800 2,397,200
Ser Long‐Term Parking Revenues 994,600 890,000 1,008,100 989,000 989,000 1,091,100
Ser Lease Revenues 505,000 283,100 283,100 283,100 283,100 283,100
Ser Parking In‐Lieu Fees 20,600 20,600 20,600 20,600 20,600 20,600
Ser Other Service Charges (125,200) (127,300) (173,500) (173,500) (173,500) (226,700)
Total Service Charges 4,976,900 4,633,500 5,320,700 5,287,600 5,535,100 6,296,400
Other Revenues 100 13,300 13,300 13,700 13,700 14,100
Total Revenues 5,649,000 5,342,900 6,044,600 5,970,900 6,220,800 6,976,900
EXPENDITURE BY CATEGORY
Salaries & Benefits 1,282,889 1,287,835 1,342,062 1,385,137 1,388,167 1,388,677
Operating Expenditures 942,726 1,142,374 1,142,374 1,165,222 1,188,526 1,212,297
Capital Projects 3,542,563 1,552,200 30,114,000 1,251,700 1,286,800 1,282,500
Debt Service 1,026,100 856,800 855,500 855,300 2,314,800 2,311,600
General Government 535,415 537,277 548,023 600,000 630,000 661,500
Total Expenditures 7,329,693 5,376,486 34,001,959 5,257,359 6,808,293 6,856,573
Other Sources (Uses)
Operating Transfers Out (169,865) ‐ ‐ ‐ ‐ ‐
Proceeds from Debt Financing ‐ 20,000,000 ‐ ‐ ‐
Other:‐ (196,138) (167,119) (162,599) (165,409) (168,275)
Total Other Sources (Uses)(169,865) (196,138) 19,832,881 (162,599) (165,409) (168,275)
CHANGES IN FINANCIAL POSITION
Beginning Working Capital 14,739,786 12,889,228 12,659,504 4,535,026 5,085,968 4,333,066
Revenues Over (Under) Expenditures (1,850,558) (229,724) (8,124,478) 550,942 (752,902) (47,948)
Ending Working Capital 12,889,228 12,659,504 4,535,026 5,085,968 4,333,066 4,285,118
Operating Reserve 552,206 593,497 606,492 630,072 641,339 652,495
CalPERS Down Payment 58,200 58,200 38,800 38,800
UFL Trust Fund 38,800 38,800 38,800 38,800 31,000
Unreserved Working Capital ‐ Year End 12,337,022 12,027,206 3,831,534 4,358,896 3,614,127 3,562,823
2018‐19
Budget (MY)
Packet Page 506
Parking Fund
Parking Fund Contribution to CIP by Project Type
Fund Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
Annual Asset
Maintenance $69,717 $53,965 $54,160 $89,279 $85,000 $352,121
Asset
Replacement $1,207,500 $1,165,000 $922,500 $922,500 $922,500 $5,140,000
New Asset $275,000 $28,895,000 $275,000 $275,000 $275,000 $29,995,000
Grand Total $1,552,217 $30,113,965 $1,251,660 $1,286,779 $1,282,500 $35,487,121
5 Year Total of Funding by Project Type
Packet Page 507
Parking Fund CIP Projects FY 2019-20 through FY 2023-24
Project Details FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 5 Year Total
842 Palm Parking Structure Maintenance $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000
871 Marsh Street Structure Maintenance $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000
919 Palm Street Structure Maintenance $100,000 $100,000 $100,000 $100,000 $100,000 $500,000
Fleet Replacement $ - $ - $ - $35,000 $35,000 $70,000
Parking 1/2ton Pickup $ - $ - $ - $35,000 $ - $35,000
Parking Compact Pickup $ - $ - $ - $ - $35,000 $35,000
IT Replacement $19,717 $3,965 $4,160 $4,279 $ - $32,121
City SAN $ - $ - $ - $2,036 $ - $2,036
Fire Radio Receive Site at Fire Station #4 $ - $625 $ - $ - $ - $625
Firewall Replacement $5,033 $ - $ - $ - $ - $5,033
Network Security Upgrade $3,872 $ - $ - $ - $ - $3,872
Network Switching Infrastructure Equipment $1,116 $ - $ - $ - $ - $1,116
Uninterruptible Power Supplies (UPS’s Servers and Storage) $ - $ - $820 $ - $ - $820
Virtual Private Network Replace $3,420 $ - $ - $ - $ - $3,420
VMware Infrastructure Upgrade $6,276 $3,340 $3,340 $ - $ - $12,956
Wireless System Citywide $ - $ - $ - $2,243 $ - $2,243
Lighting Energy Efficiency Retrofits $ - $ - $ - $ - $ - $ -
842 Palm Street Parking Structure $ - $ - $ - $ - $ - $ -
871 Marsh Street Parking Structure $ - $ - $ - $ - $ - $ -
919 Palm Street Parking Structure $ - $ - $ - $ - $ - $ -
Managed Parking Expansion (meters, Residential Permit Districts, Mobile
Pay)
$25,000 $25,000 $25,000 $25,000 $25,000 $125,000
Palm-Nipomo Parking Structure $ - $28,620,000 $ - $ - $ - $28,620,000
Parking Meter Replacements of Existing Credit Card Meters $100,000 $100,000 $5,000 $5,000 $5,000 $215,000
Parking Meter Upgrades to Credit Card/Mobile Pay $157,500 $157,500 $10,000 $10,000 $10,000 $345,000
Parking Small Capital Miscellaneous CIP Projects $50,000 $50,000 $50,000 $50,000 $50,000 $250,000
Property Acquisition & Lease $250,000 $250,000 $250,000 $250,000 $250,000 $1,250,000
Telemetry Communications Upgrades-Wayfinding $50,000 $7,500 $7,500 $7,500 $7,500 $80,000
Grand Total $1,552,217 $30,113,965 $1,251,660 $1,286,779 $1,282,500 $35,487,121 Packet Page 508
R ______
RESOLUTION NO. (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, DEFERRING, MONTHLY AND QUARTERLY
PERMIT FEES REQUIRED FOR PARKING IN TEN-HOUR METER
ZONES.
WHEREAS, the City of San Luis Obispo wishes to maintain effective usage of its three parking
structures; and
WHEREAS, the City wishes to provide secure and user friendly parking for all users of the
parking structures; and
WHEREAS, the parking program needs to continue to be self-sufficient for its financial
commitments; and
WHEREAS, the Council considered the Parking Revenue Enhancements staff report and held a
public meeting on the proposed changes to the parking structure rates and hours of operation.
WHEREAS, the Council, at its July 18, 2017 meeting adopted Resolution 10807 (2017 Series)
which set increases to the 10 Hour Meter permit fees scheduled for January 1, 2018, again on July 1,
2019 and again in July 1, 2020; and
WHEREAS, the adopted rate increase set for January 1, 2018 was implemented and raised the
ten-hour meter permit to $60.00 for the monthly permit and increased to $180 for the quarterly permit;
and
WHEREAS, the usage rates and demand for 10 Hour Meter Permits has diminished in the
subsequent period such that staff has determined that raising the permit fees at this time are not necessary
to address overuse and capacity issues and recommends that Council defer the previously approved meter
permit fee increases set for this year.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as
follows:
SECTION 1. The previously adopted increase in the ten-hour meter permit fee scheduled for
July 1, 2019, shall be deferred. Instead, the meter permit fees will remain at the current to $60.00 for the
monthly permit and $180 for the quarterly permit.
Packet Page 509
Resolution No. ______ (2019 Series) Page 2
R ______
SECTION 2. Effective July 1, 2020, the ten-hour meter permit fee shall increase to $70.00 for
the monthly permit and increase to $210 for the quarterly permit.
Upon motion of ___________________, seconded by_____________________ and on the
following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this ____ day of ___________, 2019.
_______________________
Mayor Heidi Harmon
ATTEST
_____________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San
Luis Obispo, California, this ______ day of ______________, 2019.
____________________________________
Teresa Purrington
City Clerk
Packet Page 510
R ______
RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING AND INCREASING PARKING
CITATION FINES
WHEREAS, State law provides, in Vehicle Code Section 40203.5, that cities establish
the amount of parking penalties, fees, and surcharges for parking violations; and
WHEREAS, State law authorizes the City to recover administrative fees, parking
penalties, fees and collection costs related to civil debt collection, late payment penalties, and other
related charges; and
WHEREAS, the City wishes to provide secure and user-friendly parking for all users of
the parking structures, surface parking lots, residential areas and metered parking spaces; and
WHEREAS, the City needs to be effective at enforcing Residential Permit Districts that
have been established to mitigate parking intrusion impacts of non-residents; and
NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Effective August 1, 2019 the base violation fine for parking in a residential
parking permit district will be $40 and the fine plus late fee will be $70.
SECTION 2. Parking citation fines are hereby established for and effective on the dates
as shown on Exhibit A attached hereto and incorporated herein.
Upon motion of _______________________, seconded by _______________________, and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Packet Page 511
Resolution No. _____ (2019 Series) Page 2
R ______
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, 2019.
____________________________________
Teresa Purrington
City Clerk
Packet Page 512
Resolution No. _____ (2019 Series) Page 3
R ______
EXHIBIT A
Packet Page 513
Resolution No. _____ (2019 Series) Page 4
R ______
Packet Page 514
Department Name: Utilities
Cost Center:
For Agenda of: June 4, 2019
Placement: Public Hearing
Estimated Time: 20 Minutes
FROM: Aaron Floyd, Utilities Director
Prepared By: Jennifer Metz, Utilities Project Manager
Jennifer Thompson, Utilities Business Manager
Michelle Bulow, Interim Administrative Analyst
SUBJECT: 2019 SEWER FUND REVIEW
RECOMMENDATION
1. Review and approve the 2019 Sewer Fund Review (Attachment A); and
2. Conceptually approve the 2019-21 Sewer Fund financials and budget with final action on
June 18, 2019, with the adoption of the 2019-21 Sewer rates.
DISCUSSION
Overview
The City implemented a new water rate structure and water rates in July 2018 based on the
City’s comprehensive Water and Wastewater Cost of Service Study (2018 Study). With nine
months of data collected under the new water rate structure and rates, Sewer Fund revenue
allocation has shifted to generating 27 percent from fixed charges and 73 percent from variable
charges. Collecting a larger percentage of revenue from fixed charges creates greater revenue
stability because a smaller percent of revenue will vary based upon water usage. Although the
City has prepared the Sewer Fund to have adequate cash flow for the upcoming Water Resource
Recovery Facility Project, recommended sewer rate increases are less than projected rate
increases identified in the 2018 Study.
City of San Luis Obispo - Wastewater at a Glance
Programs 6
Sewer Lines 138 miles
Pump Stations 8
Sewage Treated Annually 1.14 billion gallons
Recycled Water produced annually 74 million gallons
Water Returned to Creek* 873.5 million gallons
*As a condition of its recycled water program, the City is required to release water into the creek to maintain year -
round habitat for endangered steelhead trout.
Packet Page 515
The City’s Sewer Fund is an enterprise fund and its operating, capital and debt service
expenditures are covered by rates and fees paid for by the services it renders. The Sewer Fund
financials for the upcoming City budget are reviewed and approved by the City Council together
with the City’s overall two-year Financial Plan.
In 2019, the Sewer Fund is collecting fees from approximately 15,500 City accounts to cover the
cost for wastewater services operations and infrastructure. The Fund is comprised of six
operating programs1 that support the different tasks required to provide services that are highly
regulated by state and federal mandates.
Sewer Fund Review
The attached 2019 Sewer Fund Review (Attachment A), provides an in -depth look at changes in
financial position, revenue and operational assumptions, an update on major activities and
programs (including capital projects), and incorporates key financial impacts. In developing the
proposed budget, the fund analysis reviews the past and makes projections into the future to
determine the financial resources needed to fulfil all obligations based on actual and planned
revenues and expenditures. Attachment A provides a more comprehensive review of the Sewer
Fund than the information contained in the Business Activities section of the financial plan.
Revenues
The Sewer Fund utilizes a long-range fund analysis to forecast the fiscal impacts of capital
planning, maintenance and operations in order to smooth rate increases to support upcoming
expenses. The Sewer Fund’s long-term fund analysis determines the revenue needed to cover
expenses and obligations assumptions. Revenues are collected from multiple sources but
approximately 95 percent are directly tied to sewer service provided to the community.
The City has experienced high development activity over the past few years, which was reflected
in the levels of impact fees collected. Staff continues to forecast with conservative assumptions
as to this volatile revenue.
Sewer service charges are heavily influenced by the residential cap applied to winter water use.
This approach best characterizes the indoor water use because landscape irrigation is typically
off or very low during that time period. Each year, staff reviews the December, January, and
February consumption with a consultant to establish the applicable cap for the upcoming fiscal
year.
Operating Expenditures
The Wastewater Division’s operating and capital budgets are evaluated by looking at past
expenditures and assessing upcoming needs for the infrastructure and the six operating programs.
The operating costs include salaries, benefits, contract services, operating material (including
utilities and chemicals), training, and minor capital. The costs encompass the Sewer Fund’s six
operating programs.
1 Sewer Fund programs include Water Resource Recovery Facility, Environmental Compliance, Wastewater
Collection, Water Quality Lab, Wastewater Administration & Engineering, and Utilities Revenue.
Packet Page 516
For the upcoming fiscal year, the Sewer Fund’s operating budget also includes one-time and on-
going Significant Operating Budget Changes (SOBCs). Increased operating costs include
electricity, chemicals, equipment maintenance and repairs, contract services, warranties,
licensing, training, and regulatory fees.
Capital Expenditures
A number of water and wastewater projects will be under
construction in 2019-21 addressing aging infrastructure and
regulatory requirements. Construction of the City’s largest
capital improvement project ever, the Water Resource
Recovery Facility Project, located on Prado Road, will begin in
2019 and extend through 2022. Costs associated with that
capital investment are reflected in the attached fund review.
Upcoming sewer line replacement projects will take place on
Santa Barbara, Osos, and Leff Streets, Stafford, Kentucky, and
Murray Streets, and on Foothill Boulevard near Chorro Street and Rougeot Place. Replacement
of a sewer pump station on Calle Joaquin in the southern portion of the City is slated for 2020.
Debt Obligations
The Sewer Fund is currently paying debt service on the Tank Farm Lift Station and Force Main
project and the WRRF Energy Efficiency project. It is also still paying on the citywide debt for
the dispatch center.
The fund has been preparing for the WRRF upgrade’s annual debt service on the $140 million
project. The fiscal forecast incorporates the assumed annual debt payment and staff intends on
financing the project through the State’s Revolving Fund. A detailed listing of all debt
obligations including future assumptions can be found in the Sewer Fund Review (Attachment
A).
Total Fund Revenue & Expenditures
Below is a comparison of the Fund’s collected or anticipated revenue and the total expenditures.
In 2019-20 and 2020-21 the revenue includes proceeds from debt financing and the
corresponding capital expenditure for the Water Resource Recovery Facility update.
Sewer Rate Setting
The goal of the rate setting process is to provide sustainable funding to the City’s Sewer Fund for
operation, maintenance, and capital project needs. Rates must be developed that are equitable,
and cost-based in compliance with California Constitution Article XIII C and D, commonly
referred to as Proposition 218 (Prop 218).
The City completed a Comprehensive Water & Wastewater
Rate Study (Rate Study), was presented in the May 2018 and
the new sewer rate structure and sewer rates were approved in
June 2018. The new sewer rate structure and sewer rates were
implemented in July 2018.
Packet Page 517
In January 2019, the City hired HDR to review revenue under the newly implemented rate
structure and rates to confirm Council’s goals were being met. Findings from that analysis
include an increase in Sewer Fund revenue from fixed charges to achieve revenue and rate
stability and predictability. Prior to completing the sewer rate structure changes, 11.5 percent of
Sewer Fund revenue came from fixed charges and 88.5 percent came from variable charges.
Under the sewer rate structure that was implemented in July 2018, 27 percent of Sewer Fund
revenue is from fixed charges and 73 percent from variable charges.
Based on the recommendations of the Water and Wastewater Rate Study Update, the City’s
proposed sewer rates for 2019-21 are provided in the Sewer Fund Review (Attachment A).
Proposition 218
Under Proposition 218, property owners and/or customers
directly responsible for the payment of the fee subject to the
proposed rate increase may submit a written protest against
the proposed rate increases. The protest must be submitted on
the form provided, received by the City Clerk at or before the
public hearing on June 18, 2019, identify what is being
protested, and contain the service address. The party signing
the protest must be listed on the account as the person
responsible for payment of the sewer bill and/or the property
owner. In the event that a protest is submitted by the owner
and by the tenant responsible for payment of the bill, then one
valid protest is counted for the account.
If written protests are filed by a majority (50 percent plus
one), the proposed sewer rate may not be imposed. For the
proposed sewer rate, a majority of 14,813 customers is 7,407 plus one. As of May 13, 2019,
approximately 400 written protests have been received by the Office of the City Clerk. All
protests will need to be validated regarding property ownership and duplicate addresses. The
City Clerk will provide an updated summary of the protests received at the conclusion of the
Sewer Fund Review public hearing on June 18, 2019.
CONCURRENCE
The City’s Finance Department concurs with the recommended action.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15278.
Packet Page 518
FISCAL IMPACTS
Budgeted: Yes Budget Year: FY 19-20 and FY 20-21
Funding Identified: Yes
Attached to this report is a detailed analysis of the Sewer Fund revenues, expenditures, and
changes in financial position. The 2019 Sewer Fund Analysis includes the key assumptions used
in preparing Fund projections. With the proposed rate increases, the analysis presented to
Council in this report and in the Preliminary 2019-21 Financial Plan demonstrate sufficient funds
to support operations, capital projects, and debt service needs of the Sewer Fund.
ALTERNATIVES
Council, at its discretion, can approve all or part of the 2019 Sewer Fund Review. Staff believes
that the services, operating programs, and CIP components of the Sewer Fund represented are
consistent with prior policy/program direction of the City Council and required for compliance
with state and federal laws. Therefore, not approving the entire Sewer Fund Review is not
recommended.
Attachments:
a - 2019 Sewer Fund Review
Packet Page 519
SEWER FUND
REVIEW
2019
June 4, 2019 City of San Luis Obispo
Utilities Department
Packet Page 520
City of San Luis Obispo 2019 Sewer Fund
Page 1
TABLE OF CONTENT
I. OVERVIEW
II. KEY ASSUMPTIONS
III. 2019-21 FINANCIAL PLAN
a. Revenue
i. Sewer Service Charges
ii. Cal Poly
iii. Development Impact Fees
b. Fund Expenditures
i. Operating Programs
ii. Capital Improvement Plan
iii. Debt Service
iv. Fund Summary
IV. MAJOR ACTIVITIES AND PROGRAMS
a. 2018-19 Update
b. 2019-21 Forecast
V. SEWER RATE SETTING
a. Sewer Rate Structure
EXHIBIT A – FINANCIAL SCHEDULES
A.1 Fund Analysis
A.2 Assumptions for Fund Projections
A.3 Capital Improvement Plan
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City of San Luis Obispo 2019 Sewer Fund
Page 2
Overview
Environmental regulation, construction of major projects, infrastructure renewal, climate change, energy and a
new generation of staff will drive the wastewater business in 2019. Increased and new regulation continue to
impact all aspects of the wastewater division, with all fields experiencing new, more stringent and/or additional
requirements. The Water Resource Recovery Facility (WRRF) project will require diligent and comprehensive
management and operations during the project’s three- and a half-year construction phase. Prioritized
replacement or rehabilitation of sewer mainlines, lift stations, and manholes are crucial to keep ahead of the
utility’s deteriorating condition and meet increased regulations and community expectations. Concerted efforts
to better manage private infrastructure, such as sewer laterals, has become an essential element of wastewater
policies and practices. Climate change, energy requirements, and energy costs will continue to drive a need to
explore additional operating efficiencies and opportunities to generate additional power. A new generation of
water professionals has arrived and with them the need to provide required training, time to learn and adjust to
a new career, and mentoring.
The City of San Luis Obispo’s wastewater services are administered, serviced, and maintained through the Utilities
Department’s Wastewater Division. The financials are recognized as an enterprise fund and all facets of the
operation, maintenance of capital assets, and debt obligations are financed through rates and fees charged for
services. The Wastewater Division is responsible for:
Operating Program Core Function
Wastewater Collection Maintaining 138 miles of gravity sewer mains and 2.4 miles of
sewer force main connecting to approximately 15,000 sewer
laterals, eight pump stations, and 3,000 manholes.
Water Resource Recovery Facility Treating 1.14 million gallons of wastewater annually; producing
74 million gallons of recycled water.
Water Quality Lab Performs analyses of in support of City services including
wastewater, drinking water, recycled water, groundwater, San
Luis Creek watershed and biosolids.
Environmental Programs Ensuring regulatory compliance with water quality requirements
and safe discharge to the sanitary sewer system.
Utilities Revenue Responsible for the accurate and timely collection of revenues
that support the City’s water and wastewater programs and
provides customer interface for billing questions and service
requests.
Wastewater Administration and
Engineering
Oversight of 38.5 employees, capital projects, and overall fund
administration including engineering and safety.
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City of San Luis Obispo 2019 Sewer Fund
Page 3
Key Assumptions
When preparing a new budget, the Wastewater Division analyzes the Sewer Fund’s past financial results,
upcoming operational and capital needs, current and future debt obligations, and the financial outlook of the fund
ten years into the future. The financials prepared for the two-year financial plan follows a “zero based budgeting”
approach, considering each line item and its future need anew. The condition, infrastructure age, and future
capacity needs are driving factors in determining the Capital Project plan presented in this report and influence
the assessment of debt issuance needs. This forms the base for the evaluation of required revenue and the rate
levels needed to support ongoing operation for wastewater collection and treatment.
2019-21 Financial Plan - Revenue
As an enterprise fund, the Wastewater Division finances its operation mainly with rates charged for sewer
services. Additional revenue is collected from development impact fees, and sewer account related charges. In
accordance with its mandate, sewer rates need to be sufficient to cover operation, capital asset improvements
and maintenance, debt obligations, and appropriate reserve levels to keep the Sewer Fund healthy and prepared
for unforeseen and future funding needs. Sewer Fund revenue is collected from multiple sources which include:
• Sewer Service Charges, including a base fee and volumetric charge per unit
• Sales to Cal Poly
• Development Impact Fees
• Industrial User Fees
• Misc. Charges such as account set-up fees, late charges, meter sales, and connection fees.
• Investment and Property Revenue
As illustrated in Table 1 below, approximately 95 percent of Sewer Fund revenue comes from sewer service
charges, of which the base fee amounts to 27 percent of revenue.
Revenue projections for sewer service charges are based on the Comprehensive Water and Wastewater Cost of
Service Study, completed in 2018 and the Confirmation Study completed in 2019 that included a review of all
14,800 sewer accounts (not including dedicated irrigation accounts) using the most recent 12-month period,
including monthly usage and invoiced amounts. Historical data for all customer classes and the sewer cap for
residential accounts are analyzed to evaluate revenue stability in the current fiscal year, forecast usage, and to
test the previously forecasted sewer rates for revenue adequacy in the rate setting process.
Over the last ten years the Sewer Fund has prepared for the upgrade of the Water Resource Recovery Facility.
The City has assumed $140 million in proceeds from debt financing. As can be seen in the above table,
this is the majority of the revenue over the next three years.
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City of San Luis Obispo 2019 Sewer Fund
Page 4
Cal Poly: Sewer service charges for Cal Poly are based on effluent flow trends and the 2012 Agreement between
the City and the University. The University prepaid its share for capital improvements for the sewer system and
was therefore receiving a reduced service rate until fiscal year 2017-18 when the debt was retired. It is anticipated
that the University will pay 100 percent of the applicable rate into the future.
Development Impact Fees: These fees become due when new development “buys” into the sewer system that
was sized and constructed to accommodate population growth. After the Great Recession, San Luis Obispo
continues to experience significant construction activity. However, fee collection has diminished from a 2014-15
high of $1,161,746 (see Table 2, below). The Sewer Fund analysis takes a conservative approach as to future
income levels. The City’s wastewater development impact fees were updated in 2018, increasing from $3,830 per
equivalent dwelling unit to $10,721 per equivalent dwelling unit. Future income levels may increase as collection
continues under the new fee levels.
Table 1
Revenue Summary with revised 2018-19 budget and Financial Plan Assumption for 2019-21
Table 2
$341,902
$1,161,746 $675,489 $653,821 $681,878
2013-14 2014-15 2015-16 2016-17 2017-18
DEVELOPMENT IMPACT FEES
2018-19 2019-20 2020-21
Investment and Property Revenues 50,000$ 50,000$ 50,000$
Sewer Service Charges 11,773,250$ 12,474,545$ 13,279,865$
Sewer Base Fee 4,058,195$ 4,301,687$ 4,581,296$
Development Impact Fees 300,000$ 300,000$ 300,000$
Other Revenue 298,000$ 306,642$ 306,642$
Proceeds from Debt Financing 14,327,203$ 64,310,573$ 43,099,819$
Total Revenue 30,806,648$ 81,743,447$ 61,617,622$
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FUND EXPENDITURES
Operating Programs
The Wastewater Division’s five operating program costs are summarized below. The summary of operating
programs reflects the net operating program budget amounts for 2019-21. A rigorous and thorough review of
operating costs and trends was conducted in development of the proposed budget in collaboration with all
program supervisors to derive the budget necessary to meet regulatory requirements and continue to provide
protective, reliable wastewater services to the community.
Table 3
Proposed Changes to Operating Programs
• One-time and ongoing increases to the Water Resource Recovery Facility operating program due to
increased training, overtime, chemical, and electrical costs, an annual service warranty for the high-speed
blower, software licensing costs and a permit fee increase.
• An ongoing increase in the Wastewater Administration and Engineering program to maintain the future
need for new and ongoing regulatory, organizational and infrastructure study services. An additional
ongoing increase will fund membership with the California Association of Sanitation Agencies (CASA).
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
OPERATING EXPENDITURES
Projected 2018-19 Projected 2019-20 Projected 2020-21
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Significant Operating Budget Changes One-Time Ongoing
2019-20 2020-21 2019-20 2020-21
1 WRRF Maintenance Warranty $35,000 $19,225 $19,255
2 WRRF SCADA System Licensing $8,000 $4,083 $4,083
3 WRRF Education & Training $8,750
4 WRRF Electric Service $10,000 $90,000
5 Wastewater Admin-Various Studies $22,500 $22,500
6 Wastewater Admin-Association Fees $12,470 $12,470
7 WRRF-Overtime $13,000
8 WRRF-Regulatory Fee $10,600
9 WRRF-Chemicals $113,175
10 CIP Staffing Resources $99,926 $103,350
Sewer Fund Subtotal $51,750 $126,175 $168,204 $262,258
Table 4
Operating and Maintenance Expenses
The operating budgets for the Sewer Fund programs include staffing, benefits, and operational expenses needed
to operate the various systems involved in providing wastewater services to the community.
The most significant non-staffing operating costs for wastewater services are for:
1. Chemicals which go out to bid on an annual basis with chemical contracts running from March 1 through
February 28. For budget development purposes, any potential changes to treatment processes are
evaluated and dosage amounts for chemicals calculated.
2. Electric utility rate assumptions, as provided by PG&E, include a rate increase of 4% for the both years of
the Financial Plan for commercial and industrial accounts. However, the Energy Efficiency project the City
completed in collaboration with PG&E is showing the desired effects and energy cost is coming in lower
than previous years.
3. The cost for General Government is assessed with the City’s annual cost allocation plan and will be
reflected as a transfer between the Sewer and the General Funds.
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Expenditures
2018-19 2019-20 2020-21
Wastewater Admin 1,066,390$ 950,472$ 1,041,595$
Wastewater Collection 1,242,309$ 1,113,040$ 1,161,245$
Environmental Compliance 286,236$ 266,686$ 284,308$
Water Resource Recovery 4,082,207$ 3,767,622$ 3,995,345$
Utilities Revenue 532,624$ 470,475$ 501,742$
Water Quality Lab 804,426$ 788,903$ 803,223$
General Government 2,538,409$ 2,315,030$ 2,358,918$
Total 8,014,192$ 7,357,198$ 10,146,376$
Projected
Capital Improvement Plan
The City of San Luis Obispo Wastewater Division services, maintains, and upgrades a complex infrastructure
including a Water Resource Recovery Facility, 138 miles of sewer lines, eight pump stations, and 2,000 manholes.
Capital expenses are forecast based on infrastructure maintenance and repair history, individual project budget
estimates, regulatory requirements, and projected changes in community demographics. Maintaining the
wastewater system infrastructure, including major equipment upgrades, ongoing treatment processes, State
regulations, changing technology, and planning for long-term infrastructure upgrade and replacement is essential
to providing protective and reliable wastewater services for the community.
Table C displays the proposed five-year Capital Improvement Plan for the Sewer Fund. The proposed capital plan
includes the beginning of the upgrade of the Water Resource Recovery Facility which is offset by proceeds from
debt financing shown under the revenue tables. The project is needed due to the age of the facility, the new state
and federally mandated requirements for effluent under the City’s National Pollutant Discharge System Permit,
and increased capacity to accommodate General Plan build-out.
The total cost for infrastructure maintenance and improvements is estimated at $65,664,055 in 2019-20 and
$45,970,079 in 2020-21.
Capital Improvement Plan Project Expenses
Project budget estimates in the capital plan forecast assume a moderate increase in material costs over time (e.g.,
price per foot of pipe). The 2019-24 five-year CIP program continues investments in maintaining the City’s
infrastructure. See Exhibit A-2, attached.
It is anticipated the actual cost of completing capital projects will vary from the budgeted cost estimate. These
cost estimates are generally conservative; therefore, it is expected those projects listed for each year will be
completed. Should the bidding climate change dramatically, and costs increase above those estimated, project
timelines will be amended.
Table 5
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Debt Service
The following is a summary of the current debt payments the Sewer Fund must secure within its annual budget.
1. Debt service for the Sewer Fund’s proportionate share of the City’s Public Safety Communications Center
is $32,200 in 2019-20 and $32,100 in 2020-21 with a final payment in 2039.
2. Debt service for the Tank Farm Gravity Sewer, Lift Station, and Force Main project financed by the
California Infrastructure and Economic Development Bank (IBank) revolving fund loan is $555,500 in 2019-
20 and $554,500 in 2020-21. This debt will expire in 2037-38.
3. Debt service for the Tank Farm Gravity Sewer, Lift Station, and Force Main project portion financed
through the SunTrust private placement is $181,500 in 2019-20 and $185,000 in 2020-21.
4. Debt service for the WRRF Energy Efficiency Project is $618,000 in 2019-20 and $617,800 in 2020-21. This
is a 15-year debt agreement with final payment in 2028-29.
5. Debt service for the WRRF Upgrade Project is currently projected at $5,922,310 annually beginning in
2021-22 based on a total project cost currently estimated at $140 million. In 2019-20 and 2020-21, the
Sewer Fund will hold $2,961,155 each year to secure the required final payment to be held in reserve.
This project is scheduled to be financed through the State Revolving Fund with a term of 30 years.
Fund Summary
The fiscal condition of the Sewer Fund is currently sound and will remain so over the next five years.
$5,505,691
$1,225,000
Table 6
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Table 7
Total Expenditure by Category and Function
Capital Outlay for the WRRF project begins in 2019-20. This is the largest CIP in City history. Table 8
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2017-18 2018-19 2019-20 2020-21
Revenue & Expenditures
Revenue Expenditure
Expenditure by Category
2018-19 2019-20 2020-21
Budget Budget Budget
Salaries & Benefits 4,506,176$ 4,335,683$ 96% 4,530,392$ 104%
Operating Expenditures 3,508,017$ 3,001,155$ 86% 3,152,502$ 105%
Capital Outlay 16,254,553$ 65,484,055$ 403% 45,770,079$ 70%
Debt Service 1,357,383$ 4,316,151$ 318% 4,318,410$ 100%
Transfers Out 2,538,409$ 2,566,897$ 101% 2,615,853$ 102%
Total 28,164,538$ 79,703,941$ 283%60,387,236$ 76%
Expenditure by Function
2018-19 2019-20 2020-21
Budget Budget Budget
General Government 2,538,410$ 2,566,897$ 101% 2,615,853$ 102%
Wastewater Collection 3,583,516$ 2,490,969$ 70% 4,266,713$ 171%
Environmental Compliance 286,236$ 305,465$ 107% 284,308$ 93%
Water Resource Recovery 19,258,056$ 72,175,375$ 375% 50,974,106$ 71%
Utilities Revenue 532,624$ 487,301$ 501,742$ 103%
Water Quality Lab 804,426$ 800,223$ 99% 803,223$ 100%
Wastewater Administration 1,161,270$ 877,710$ 76% 941,291$ 107%
Total 28,164,538$ 79,703,940$ 283% 60,387,236$ 76%
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Table 9
CHANGES IN FINANCIAL POSITION
This section summarizes changes in financial position for the Sewer Fund. Working capital represents the excess
of current assets over current liabilities. The Sewer Fund maintains a minimum working capital balance of 20% of
operating expenditures. This is considered the minimum level necessary to maintain the Fund’s credit worthiness
and to adequately provide for economic uncertainties, unforeseen operating and capital needs, and cash flow
requirements.
MAJOR ACTIVITIES AND PROGRAMS
2018-19 Update
1. Regulatory Requirements
The City, its water quality consultants, and the Central Coast Water Board (CCWB), have met regularly to
discuss and negotiate the upcoming revised National Pollutant Discharge Elimination System (NPDES)
permit. The WRRF’s NPDES permit will expire in November of 2019 and the City will submit an application
for the new permit by June 3, 2019. Because of a backlog of permit applications, it is likely that a new
permit will not be renewed by November, and the City has partnered with the CCWB on a strategy and
possible path forward to maintain compliance until a new permit is issued.
2. Water Resource Recovery Facility (WWRF) Design
The WRRF design was completed in February of 2019 and was advertised for bids on March 13, 2019. Bids
will be received on May 20, 2019, with staff possibly returning to Council to discuss the project scope and
budget if needed. A low interest loan from the State Revolving Fund has been secured for the project.
Construction is scheduled to begin in September of 2019.
3. Margarita Lift Station Sewer Lift Station Telemetry
Replacement of the Margarita Lift Station was completed in February of 2019. The station serves existing
customers and a portion of the Margarita Area Specific Plan. The new station includes emergency power,
upgraded communications and landscape elements. The new station will reduce maintenance, customer
service interruptions, and the potential for sanitary sewer overflows.
Changes in Financial Position
2018-19 2019-20 2020-21
Budget Budget Budget
Working Capital - Beginning 30,312,056$ 32,351,562$ 33,581,948$
Revenues over (under) Expenditu 2,039,506$ 1,230,387$ (2,445,373)$
Working Capital - Year End 32,351,562$ 33,581,948$ 31,136,575$
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2019-21 Forecast
1. Calle Joaquin Lift Station
Design, environmental permitting, and land acquisition is scheduled to be completed in the Winter of
2019 with bidding sometime in the Spring of 2020. Construction should begin in mid-2020. This lift station
replacement project includes a new siphon under San Luis Obispo Creek, a gravity sewer line under
Highway 101, a new lift station with emergency power and updated controls. The force main component
has already been completed. Construction cost estimates are being revised but staff believes adequate
budget for the project has been identified.
2. Water Resource Recovery Facility Project
Construction will begin on the WRRF project in September 2019 with major activities ramping in early
2020. The Water Resource Recovery facility will meet all regulatory requirements, required future
capacity as identified in the General Plan, replace aged infrastructure, maximize recycled water
production and be an asset to the community. The WRRF team has worked hard to prepare for the
successful delivery of the project while compliantly operating the facility throughout construction.
Construction cost has been set at $111,600,000 and is scheduled for completion in the Spring of 2023.
Total project costs are currently estimated at $152 million, including environmental studies, design,
construction, and program and construction management.
3. Infrastructure Maintenance
Ongoing pipeline replacement for the wastewater collection system, manholes, Inflow and Infiltration
reduction, trench repairs, equipment replacement and process maintenance at the WRRF are required to
ensure the efficient and compliant conveyance and treatment of wastewater. To avoid costly failures or
excessive maintenance before replacement, these projects were identified, evaluated, and prioritized.
Wastewater collection system projects over the five-year capital forecast (2019-21 thru 2023-24) total
$6.03 million, or about $1.2 million per year. WRRF Major Maintenance is estimated to $1.9 million over
the next five years to maintain equipment or empty and clean existing processes that will not be replaced
by the project to meet construction activities and schedule.
4. Airport, Foothill, and Silver City Lift Stations
These aging lift stations are at the end of their useful lifespan and will require replacement. Airport lift
station is completing the study phase with design in 2020-21 and construction anticipated to begin in the
2021-22. Foothill lift station is at 30 percent design and will require additional design because of the siting
issues with anticipated construction beginning in 2022-23. Silver City lift station will begin the study phase
in 2022-23 with design in 2023-24. Recent project bids have shown an increase in construction costs and
required subsequent budget adjustments. Lift stations replacements will incorporate design elements
that accommodate space restrictions and reduce operating costs and maintenance. The capital forecast
currently assumes $3.6 million to replace Airport and Foothill lift station at approximately $1.8 million per
station, with Airport and Foothill lift stations replacement schedules in 2022-22 and 2022-23 respectively.
The capital improvement plan forecast will be adjusted as additional information becomes available while the
projects move toward construction.
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SEWER RATE SETTING
The goal of the rate setting process is to provide sustainable funding to the City’s Sewer Fund for operation,
maintenance, and capital project needs. Rates must be developed that are equitable, and cost-based in
compliance with California Constitution Article XIII C and D, commonly referred to as Proposition 218 (Prop 218).
Sewer Rate Structure
The City Council approved the volume-based residential sewer rate structure effective July 1, 2007, delivering a
sewer rate structure with a base fee and volume charge to reflect the individual customer’s usage and associated
sewer charges. The volume-based sewer rate structure encourages efficient water use and achieves fairness and
equity among residential customer classes — customers with low use pay less and customers with higher usage
pay more. Prior to 2007, the single-family residential sewer rate structure was a fixed charge which did not reflect
the individual customer’s water use and associated demand placed on the wastewater system.
With the residential volume-based sewer rate structure, the individual customer’s metered water use during the
winter months of December, January, and February was determined to be most reflective of the demand placed
on the wastewater system for sewer charges. The water use during the winter months, when outdoor irrigation
should be turned down or off, is averaged to establish a “sewer cap”. Residential and Multi-Family sewer caps are
implemented with the first full sewer service period after July 1. Sewer charges are based on actual water used
up to the customer’s sewer cap.
The City began reviewing its sewer rate structure in July 2017. At that time,
the City’s rate structure did not differentiate between customer classes,
meaning there is no difference in the fixed and consumption charges to a
residential customer, a commercial business or office, or a multi-family
apartment complex. Study sessions were held in July and August 2017, to
provide the Council and community with an introduction to sewer rate
concepts, terminology, and the review of rate structure goals. In January
2018, the City Council directed staff to incorporate the updated sewer rate
structure into a comprehensive rate study and into the Sewer Fund analysis.
Key changes to the rate structures in alignment with the City Council’s goals
are:
• A greater percent of revenues collected through the fixed portion of the sewer rates.
• The fixed portion of the sewer rates for multi-family, non-residential, and irrigation customers will be
based on meter size.
City Council Rate Structure
Goal Prioritization
1 Revenue Stability and
Predictability
2 Stability and Predictability
of the Rates
3
Fair Allocation of Total
Cost of Service Among
Customer Classes
4 Reflect all Present and
Future Costs
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Comprehensive Sewer Rate Study
In October 2017, the City hired HDR Engineering, Inc. (HDR) to assist with this process and prepare the
comprehensive rate study. The study included determining the revenue requirement, cost of service, and rate
design analyses were completed. The basis for the study was the City’s adopted budget, capital improvement plan,
historical customer data, and system operation characteristics. Based on the City’s specific costs, and customer
characteristics, cost-based rates were developed to prudently fund the wastewater utility.
The study provides the necessary documentation and an administrative record of the cost basis for the City’s
proposed sewer rates in compliance with Prop. 218, section 6 which regulates fees and charges for property
related services such as sewer rates. In accordance with the provisions of Prop. 218, sewer rates are designed
based on a cost-of-service methodology that fairly apportions costs to all customers.
A study session on was held with the City Council in February 2018 to discuss the methodology used for sewer
rate setting, including a revenue requirement analysis; a cost of service analysis; and rate design analysis,
incorporating the City Council’s rate structure goals described above. The product of the analysis, the
Comprehensive Water & Wastewater Rate Study (Rate Study), was presented in the May 2018 and the new sewer
rate structure and sewer rates were approved in June 2018. The new sewer rate structure and sewer rates were
implemented in July 2018.
In January 2019, the City hired HDR to review revenue under the newly implemented rate structure and rates to
confirm Council’s goals were being met. Findings from that analysis include an increase in Sewer Fund revenue
from fixed charges to achieve revenue and rate stability and predictability. Prior to completing the sewer rate
structure changes, 11.5 percent of Sewer Fund revenue came from fixed charges and 88.5 percent came from
variable charges. Under the sewer rate structure that was implemented in July 2018, 27 percent of Sewer Fund
revenue is from fixed charges and 73 percent from variable charges.
Based on the recommendations of the 2019 Rate Study Confirmation, the City’s proposed sewer rate structure
and sewer rates for 2019-21 are provided below.
PROPOSED SEWER RATES FOR 2019-20
For single-family and multi-family residential customers, a winter water use average is the three-month average
of water use during December, January, and February. This is also referred to as a “sewer cap” and is the basis of
the usage portion of the customer’s monthly sewer charges. For non-residential customers, all “usage” is based
on monthly metered water consumption.
Usage:
Current Rates1 Proposed
2019-20 Rates
Proposed
2020-21 Rates
Single-Family and Multi-Family Residential
Per Unit Cost (Up to Sewer Cap)2 $7.85 $8.28 $8.69
Non-Residential
Per Unit Cost (for All Water Consumption)2 $7.85 $8.28 $8.69
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Monthly Base Fee:
Current Rates1 Proposed
2019-20 Rates
Proposed
2020-21 Rates
Single-Family Residential $18.69 $19.72 $20.71
Multi-Family and Non-Residential
By Water Meter Size:
¾ inch or less $18.69 $19.72 $20.71
1-inch meter $31.21 $32.93 $34.58
1.5-inch meter $62.24 $65.66 $68.94
2-inch meter $99.62 $105.10 $110.36
3-inch meter $186.90 $197.18 $207.04
4-inch meter $311.56 $328.70 $345.14
6-inch meter $622.93 $657.19 $690.05
8-inch meter $996.72 $1,051.54 $1,104.12
10-inch meter $1,432.94 $1,511.75 $1,587.34
SEWER RATES NOTES:
1. Current rates effective July 1, 2018.
2. One Unit = 748 Gallons
Packet Page 534
SEWER FUND ANALYSIS
2019-20 2020-21 2021-22 2022-23 2023-24
Budget Budget Budget Budget Budget
REVENUES BY TYPE
Sewer Service Charges 11,426,800$ 12,169,542$ 12,960,562$ 13,802,999$ 14,217,089$
Base Fee Revenue*4,301,687$ 4,581,296$ 4,879,081$ 5,196,221$ 5,352,107$
Cal Poly Sales 962,745$ 1,025,323$ 1,091,969$ 1,162,947$ 1,197,836$
Development Impact Fees 300,000$ 300,000$ 300,000$ 300,000$ 300,000$
Industrial User Charges 85,000$ 85,000$ 85,000$ 85,000$ 85,000$
Investment & Property Revenue 50,000$ 50,000$ 50,000$ 50,000$ 50,000$
Proceeds from Debt Financing 64,310,573$ 43,099,819$ 15,920,563$ 426,625$
Miscellaneous Revenue*306,642$ 306,642$ 312,775$ 319,030$ 325,411$
TOTAL 81,743,447$ 61,617,623$ 35,599,950$ 21,342,822$ 21,527,443$
EXPENDITURE BY CATEGORY
Salaries & Benefits 4,335,683$ 4,530,392$ 4,746,573$ 4,882,249$ 5,025,050$
Operating Expenditures 3,001,155$ 3,152,502$ 3,199,790$ 3,247,786$ 3,296,503$
Capital Outlay 65,484,055$ 45,770,079$ 20,156,697$ 5,505,691$ 1,225,000$
Debt Service 4,316,151$ 4,318,410$ 7,276,470$ 7,273,125$ 7,274,423$
Transfers Out 2,566,897$ 2,615,853$ 2,665,793$ 2,716,445$ 2,768,416$
TOTAL 79,703,941$ 60,387,236$ 38,045,323$ 23,625,296$ 19,589,392$
EXPENDITURE BY FUNCTION
General Government 2,566,897$ 2,615,853$ 2,665,793$ 2,716,445$ 2,768,416$
Wastewater Collection 2,490,969$ 4,266,713$ 6,103,922$ 6,675,245$ 2,818,676$
Environmental Compliance 305,465$ 284,308$ 295,170$ 302,768$ 310,741$
Water Resource Recovery 72,175,375$ 50,974,106$ 26,628,547$ 11,407,396$ 11,231,935$
Utilities Revenue 487,301$ 501,742$ 512,596$ 522,641$ 533,031$
Water Quality Lab 800,223$ 803,223$ 835,482$ 856,205$ 877,884$
Sewer Customer Service -$ -$ -$ -$ -$
Wastewater Administration 877,710$ 941,291$ 1,003,813$ 1,144,597$ 1,048,709$
TOTAL 79,703,941$ 60,387,236$ 38,045,323$ 23,625,296$ 19,589,392$
-$ -$ -$ -$ -$
CHANGES IN FINANCIAL POSITION
Working Capital - Beginning 30,312,056$ 32,351,562$ 33,581,948$ 31,136,575$ 28,854,101$
Revenues over (under) Expenditures 2,039,506$ 1,230,387$ (2,445,373)$ (2,282,474)$ 1,938,051$
Working Capital - Year End 32,351,562$ 33,581,948$ 31,136,575$ 28,854,101$ 30,792,152$
CAFR (CA-CL)
Variance to CAFR
Operating Reserve 2,843,977$ 2,923,431$ 3,577,725$ 3,623,921$ 3,672,878$
Rate Stabilization 834,562$ 888,808$ 946,581$ 1,008,108$ 1,038,352$
CALPers Down Payment 251,535$ 179,668$ 179,668$ 119,778$ 119,778$
UFL Trust Fund 119,778$ 119,778$ 119,778$ 119,778$ 95,823$
Unreserved Working Capital - Year End 28,301,710$ 29,470,263$ 26,312,823$ 23,982,515$ 25,865,321$ Packet Page 535
FUND ANALYSIS ASSUMPTIONSCategory2018‐19 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24Cost InflatorsMCI 2.9% 2% 2% 2% 2% 2%CCI 3.2%CPI 1.9%PPI 4.0%PG&E 5% 5%Salary Increases0.0% 2.0% ‐1.0% 2.0% 2.0% 2.0%Rate IncreasesBase Fee $ 18.69$ 19.72$ 20.71$ 22.06$ 23.49$ 24.19$ Base Fee %3.0% 5.5% 5.0% 6.5% 6.5% 3.0%Volumetric3.8% 5.5% 5.0% 6.5% 6.5% 3.0%Estimated # of meters14,700 14,800 14,900 15,000 15,100 15,200 Packet Page 536
CAPITAL IMPROVEMENT PROJECTS
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Revised Budget Budget Budget Budget Budget Budget
WASTEWATER COLLECTION
PROJECTS
2016 Sewer Lining Project
Design -$
Construction 250,000$
Construction Management 35,000$
Stafford Taft Kentucky
Construction 95,000$
Santa Barbara, Osos Trench/Pipe Bursting
Design -$
Construction 250,000$
Construction Management -$
Walnut, Morro, etc cured in place
Design -$
Construction 170,000$
Construction Management 17,000$
Albert, Slack, etc cured in place
Design -$
Construction 230,000$
Construction Management 38,000$
Foothill, etc trench & pipe bursting
Design -$
Construction 100,000$ 170,000$
Construction Management 10,000$
Murray, Chorro, Meinecke, etc trench/sewer repl
Design -$
Construction 370,000$
Construction Management 37,000$
Westmont, Cerro Romaldo, etc trench/pipe bursting
Design 110,000$
Construction 1,100,000
Construction Management 110,000
Verde, Luneta, etc trench/pipe bursting
Design 116,000
Construction 1,160,000
Construction Management 116,000
Serrano, Bressi, etc trench & pipe bursting
Design 75,000$
Construction
Construction Management
Johnson, Buchon, etc trench & pipe bursting
Design 135,000$
Construction 1,350,000$
Construction Management 135,000$
Foothill Chorro Project
Study
Design 200,000$
Construction
Construction Management
Inflow/Infiltration Reduction 50,000$ 200,000$ 200,000$ 200,000$ 200,000$ 200,000$
Trench Repair -$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$
Raise Manholes -$ 30,000$ 25,000$ 25,000$ 25,000$ 25,000$
Flow Study 250,000$ 100,000$
Infrastructure Renewal Strategy Report Update 80,000$
Packet Page 537
WASTEWATER LIFT STATIONS
Laguna Lift Station Pipe Replacement
Study -$
Construction 100,000$
Construction Management 20,000$
Calle Joaquin Lift Station
Design -$
Construction 2,284,472$ 700,000$
Construction Management 295,055$
Foothill Lift Station
Easement Acquisition 50,000$
Design -$ 180,000$
Construction (Transfer funds to Calle Joaquin LS)1,800,000$
Construction Management 180,000$
Airport Lift Station
Study
Design 9,600$
Construction 1,800,000$
Construction Management 180,000$
Silver City Lift Station
Study 70,000$
Design 100,000$
Construction
Construction Management
Buckley Sewer Lift Station ( From Impact Fees)180,000$ 200,000$ 200,000$ 200,000$ 200,000$
Concrete St/Access 18 2,400$
Marsh St Siphon (PW Project)-DN 21,328$
Marsh St Siphon (PW Project)-CN 240,000$
Water Meters and Boxes 90,000$ 90,000$ 90,000$ 90,000$ 90,000$
IT
WWC Telemetry System Improvements 140,113$
Cityworks Upgrade 250,000$
FLEET - WWC
VAC-CON HYDROCLEANER #0718 500,000$
TOTAL 4,814,968$ 805,000$ 2,566,000$ 4,361,000$ 4,905,000$ 1,015,000$
Packet Page 538
WATER RESOURCE RECOVERY FACILITY
PROJECTS
Major Maintenance 200,470$
Digester Cleaning No.1 , 2 and 3 200,000$ 300,000$
Coating Maintenance 15,000$
Screenings Washer Auger 350,000$
Headworks Grit Pump 175,000$
UV Bulb Replacement (annual replacement)50,000$
WRRF Upgrade
951-Study/Environmental 282,279$
952-Design
953 -Construction 12,260,459$ 59,459,098$ 38,248,344$ 11,069,088$ 22,335$
Construction Management 1,286,784$ 3,088,281$ 3,088,281$ 3,088,281$ 257,357$
Program Management 263,940$ 527,881$ 527,881$ 527,881$ 43,990$
Construction Engineering 514,714$ 1,235,313$ 1,235,313$ 1,235,313$ 102,943$
WRRF Membrane System 75,000$
IT
WRRF Telemetry 280,000$
MP2 Replacement 30,000$
FLEET - WRRF
Utility Trucks (3)
Sedan 35,000$
WRRF - Club Cars-Electric & Chargers 10,000$
Forklift 40,000$
TOTAL 14,883,646$ 64,800,573$ 43,399,819$ 15,975,563$ 666,625$ 400,000$
ENVIRONMENTAL COMPLIANCE
FLEET
Prius 35,000$
35,000$
ADMINISTRATION
Projects
879 Roofing Project (Oper Transfer Out)2,500$ 10,000$
Fleet
Prius 35,000$
Control System Trucks
-$ -$ -$ -$ 37,500$ 10,000$
SHARED IT
Wireless System Citywide 5,739$
Server Operating System 4,260$
VoIP 15,789$
Network Firewalls 8,918$
Virtual Private Network Replacment 14,564$
Network Switch Infrastructure Repl. 27,252$
Radio Handhelds Repl. 42,960$
MS Office Replacement
VM Infrastructure 20,615$
UPS Battery Replacement 4,345$
TOTAL -$ 23,482$ 4,260$ 20,134$ 96,566$ -$
COMPLETED PROJECTS
Available Balance 257,332$
GRAND TOTAL - SEWER FUND 19,955,946$ 65,664,055$ 45,970,079$ 20,356,697$ 5,705,691$ 1,425,000$
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Department Name: Public Works
Cost Center: 5201
For Agenda of: June 4, 2019
Placement: Public Hearing
Estimated Time: 20 Minutes
FROM: Daryl Grigsby, Director of Public Works
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: 2019 TRANSIT FUND REVIEW
RECOMMENDATION
1. Review and accept the 2019 Transit Enterprise Fund Review (Attachment A); and
2. Approve the FY 2019-20 Transit Enterprise Fund financials and budget and
3. Authorize the City Manager, or the City Manager’s designee, to execute a one-year
agreement extension with Cal Poly for continuation of the Subsidy Agreement for Free Fare
ridership on SLO Transit.
DISCUSSION
Background
This report presents a review of the annual Transit Enterprise Fund for the FY 2018-19 and a
forecast for the FY 2019-20. This forecast looks at key issues and trends which could impact the
overall health of the fund.
The Transit Enterprise fund closes out the 2017-19 budget cycle with a balanced budget. The
Fund has approximately $2.7 M in Working Capital. These funds are necessary as part of a
fiscally prudent operating reserve to help weather any volatility in revenues. Funds in excess of
the 20% reserve will be used as local “matching” funds or to fund transit capital projects yet to
have an identified federal or state assistance grant. The fiscal outlook for the Transit Fund over
the next five years continues to require that expenditures be moderated to reflect revenue levels.
Attachment A contains a comprehensive review of the Transit Fund and an abridged version will
be found in the Business Activities section of the 2019-21 Financial Plan.
Packet Page 541
Revenues
Transit Revenues are projected to
sufficiently keep pace with
escalating costs. However, any
significant changes, such as the
expansion of the transit program,
will require additional funding
sources. Federal 5307 Transit
funds, (FTA), 36% of the total
operating budget and are projected
to grow proportionately during the
next fiscal cycle and five-year
outlook. However, unforeseen
changes in federal policy can significantly affect funding projections. State Transit Development
Act (TDA) funds, 44% of the total operating budget, are also projected to have a modest
increase, most of which is attributed to the supplement of SB1 funds. Local revenue from cash
fares, pass sales and CalPoly subsidy, 20% of the total operating budget, are also expected to see
modest gains. These local revenues are sufficient to meet the mandate that 20% of the total
operating budget consist of farebox revenue. No fare increases are proposed in this Financial
Plan. There will be a slight reduction in the Senior/Disabled discounted pass to effective on July
1st, 2019. This is the third year in a phased in reduction approved in 2016. The three-year phase
in was to reduce the impact on seniors and disabled.
CalPoly Subsidy Extension
An agreement with Cal Poly is a significant component in total local farebox revenue and
contributes to the overall health of the Transit Fund. The last four-year agreement expired June
30, 2016 and has been amended with annual extensions. Staff has been working with Cal Poly
administration to develop a new agreement to continue to subsidize this important student
service. The University has requested an additional one-year extension with a 3% increase over
current costs for fiscal year 2019-20. This increase is in line with past annual increase for the
subsidy agreement. City staff and Cal Poly administration are currently in negotiations over an
agreement which meets the long-term strategic goals of each agency.
Operating Expenditures
Expenditures will continue to be
mitigated to reflect revenue levels.
As previously stated, Transit’s
obligation to recover 20% of its total
operating costs will ultimately
determine service levels. Some
system efficiencies derived from
implementing initial parts of the
Short-Range Transit Plan, such as
reduced fuel costs, are helping.
However, these savings are being
offset by increasing annual operating
costs. During the second year of this
0
1000000
2000000
3000000
4000000
5000000
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Transit Revenues
Federal State Local Total Revenues
0
2000000
4000000
6000000
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Transit Expenditures
Purchased Transportation Fuel & Maintenance
Overhead/Admin Cost Allocation
Total Expenditures
Packet Page 542
Financial Plan the Transit program enters into unknown contract costs if an extension is
exercised to an existing Transit Operations and Maintenance Contract with First Transit Inc. In
anticipation, Staff is currently working with the Contractor to identify Year five, six and seven
costs, should extensions be exercised, as far in advance as possible and plan accordingly.
Capital Expenditures
Capital projects continue to be a challenge for the Transit Enterprise Fund which is highly reliant
on discretionary grants. Capital assistance grants, such as: Low Carbon Transportation
Operations Program (LCTOP), Senate Bill 1 State of Good Repair (SB1 SGR), and the
remaining amount of Proposition 1B (now discontinued) are helping in delivery of minor capital
projects for the Transit program. Larger projects, however, such as fleet replacement and
expansion are yet to have an identified funding source beyond Working Capital reserves.
More specifically, two vehicles have already met their “useful life” threshold, six more will next
year, and there is an anticipated need for six expansion vehicles to meet increased service
demands, should additional operational funding materialize. Without state or federal funding
assistance, these projects will need to be deferred. Further, albeit just outside of the five-year
forecast, staff is already planning for the mandated electrification of the fleet and the associated
infrastructure and vehicle costs associated with such a conversion. Regional collaboration on
achieving zero emission fleet is being pursued.
There are issues that could impact future Transit revenues and service. Negotiations with Cal
Poly remain crucial to the program as they represent the highest consumer group. Regional
entities such as RTA are seeing cost increases which could impact a greater share of the region’s
limited shared funds. Regardless, based upon the conservative revenue projections, available
working capital and forecasted expenditures the Transit Fund remains positive over the Five-
Year Forecast.
Policy Context
The City of San Luis Obispo two-year budget cycle emphasizes community involvement, long-
range financial planning and effective program management. At its highest level, a budget
identifies the needs and interests of the community and allocates available resources to those
while remaining fiscally strong for the future. In crafting the following proposed allocations, the
City was guided by the Major City Goals, Other Important Objectives and the Fiscal Health
Response Plan, a strategic plan that addresses a budget gap caused by increasing pension costs.
This budget is part of the 2019-21 Financial Plan.
Public Engagement
The City of San Luis Obispo has earned national recognition for its budget process, a two-year
cycle that emphasizes community involvement, long-range financial planning and effective
program management. At its highest level, a budget identifies the needs and interests of the
community and allocates operational and capital expenditures based on adopted Major City
Goals. Public Transit has a significant role in two goals for 2019-21: Climate Action and Multi-
Modal Transportation.
Packet Page 543
CONCURRENCE
The City’s Public Works and Finance Department concur with the recommended action.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-21
Funding Identified: N/A
Fiscal Analysis:
TRANSIT FUND ANALYSIS
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
REVENUES
Federal 1,488,983$ 1,511,318$ 1,533,988$ 1,556,998$ 1,580,353$ 1,604,058$
State 1,803,544$ 1,830,597$ 1,858,056$ 1,885,927$ 1,914,216$ 1,942,929$
Local 822,991$ 845,634$ 868,941$ 892,934$ 917,533$ 943,118$
Total: 4,115,518$ 4,187,549$ 4,260,985$ 4,335,859$ 4,412,102$ 4,490,105$
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
EXPENDITURES
Purchased Transportation 2,683,962$ 2,738,224$ 2,792,617$ 2,847,143$ 2,902,051$ 2,957,227$
Fuel & Maintenance 550,754$ 553,578$ 556,444$ 559,353$ 562,306$ 565,303$
Overhead/Admin 537,909$ 539,747$ 544,996$ 550,389$ 555,889$ 561,499$
Cost Allocation 399,709 407,703 409,742 413,839 417,978 422,157
Total: 4,172,334$ 4,239,252$ 4,303,799$ 4,370,724$ 4,438,224$ 4,506,187$
CHANGES IN FINANCIAL POSITION
Revenues Over/Under Expenditures (56,816)$ (51,703)$ (42,814)$ (34,865)$ (26,122)$ (16,082)$
Working Capital - Year End 2,700,000$ 2,751,703$ 2,794,517$ 2,829,382$ 2,855,503$ 2,871,585$
Operating Reserve 834,467$ 847,850$ 860,760$ 874,145$ 887,645$ 901,237$
Unfunded Liability 49,050$ 50,520$ 50,521$ 50,522$ 50,523$ 50,524$
Unreserved Working Capital - Year End 1,816,483$ 1,853,332$ 1,883,236$ 1,904,715$ 1,917,336$ 1,919,824$
ALTERNATIVES
• Do not approve the transit fund budget and provide staff with Council direction on
modifications to bring back at the June 18 City Council meeting.
• Do not approve a one-year contract extension with Cal Poly. Direct staff to renegotiate
University service terms now. Staff does not recommend this as the current service contract
expires on June 30, 2019, the one-year extension will allow staff and Cal Poly to negotiate
terms in the context of the University’s Master Plan while maintaining service levels
supporting both the University and City’s sustainable transportation goals.
Attachments:
a - 2019 Fund Review - Transit
Packet Page 544
TRANSIT FUND
REVIEW
2019
June 4, 2019 City of San Luis Obispo
Transit Division
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City of San Luis Obispo 2019 Transit Fund
Page 1
| The Service of Public Transit
SLO Transit is the local fixed-route public transit operation for the City of San Luis Obispo. SLO Transit operates
14 vehicles at peak period, along eight routes within the 23 square miles of the city limits of San Luis Obispo and
California Polytechnic State University. Services operate 363 days a year. On average, 1 million rides are provided
annually. Ridership demographics reflect a broad cross section
of the community, including: Seniors, the Disabled, Indigent, K-
12 Students, University Students, Commuters and Visitors.
Trips are routinely taken to access educational, medical,
employment, commercial and social opportunities throughout
the service area. Transit services play a vital role, not only as a
“safety net” for the transit-dependent, but also addresses
climate change issues associated with greenhouse gases.
| Overview
The City’s public transit services are administered through the Transit Division of the Public Works Department.
Transit is an Enterprise Fund as all facets of the operation and maintenance of capital assets are financed outside
of the City’s General Fund. Transit is funded by State and Federal grant allocations and locally generated fares.
The Transit Division is comprised of:
Operating Program Number of
Employees
Core Function
Financial Management (e.g. budget,
grants, procurement, etc.) and State,
Federal and Local Compliance
1 Transit Manager is primarily responsible for the fiscal health
of the annual $ 4 million operations, including securing annual
state and federal funding, ensuring local match funds meet
requirements and ensuring the programs are in compliance
with federal and state mandates.
Contract Management, Data Processing
and Short-term Planning
1 Transit Coordinator is primarily responsible for overseeing the
City’s second largest vendor contract ($2.8 M) with the
operations and maintenance contractor (First Transit Inc.),
ADA and Title VI compliance, while also overseeing short-term
planning efforts to serve 1 million riders annually.
Public Engagement and Marketing 1 Transit Assistant helps to ensure that public engagement
adequately meets state, federal and local requirements for
public noticing. The position also produces content necessary
to engage the public in a clear, concise and attractive manner
while also trying to capture market share.
Total Transit Dedicated Employees 3
| ACCOMPLISHMENTS
Looking back over the past five-year, Transit has had several accomplishments, including:
• 2015-16 Annual passenger trips reached a record 1.2 million trips
• 2016 Adoption of 2017-21 Short Range Transit Plan (SRTP)
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City of San Luis Obispo 2019 Transit Fund
2
• 2017 Introduction of three state-of-the-art, upgraded transit buses with innovative and award-winning
interior and exterior upgrades
• 2017 Implementation of major systemwide route and schedule changes improving the safety, reliability,
on-time performance, accessibility and efficiency of the City of San Luis Obispo Transit system
• 2018 Implementation of transit service to San Luis Obispo County Regional Airport
As a direct result of many of these projects and initiatives, SLO Transit has been awarded and recognized as
follows:
• 2017 American Public Works Association (APWA) honored SLO Transit with Project of the Year in
Sustainable Initiatives for the transit fleet modernization and upgrade project.
• 2018 Metro Magazine honored SLO Transit with the Award of Innovation recognizing the City of San Luis
Obispo’s entire reworking of its vehicle specifications to modernize its transit fleet while simultaneously
improving the safety and operation of the vehicles.
• 2018 California Association for Coordinated Transportation (CalACT) honored SLO Transit as an agency
that has demonstrated achievement in efficiency, effectiveness, and customer service.
| 2019-21 Financial Plan
Key Assumptions
When preparing the budget, the Transit Division analyzes past subsidies (federal, state, and contractual with Cal
Poly) and ridership trends to forecast revenues. Transit service based on costs are then matched to revenue
forecasts. Bus replacement schedules are based on federally approved “useful-life” criteria and best-case
scenarios for aging vehicles, however the availability of funds is highly dependent on discretionary grants from
the state or federal government. Without these, bus replacements are often deferred. The budget prepared for
this two-year financial plan follows a “zero based budgeting” approach, considering each line item and its future
needs anew.
Revenues
As an Enterprise Fund, Transit funds its operations within subsidy and fare revenues. Revenues are projected to
sufficiently keep pace with escalating costs. However, any expansion of the transit program will require additional
funding sources.
Federal funding assistance is provided to SLO Transit in the form of Federal Transit Administration (FTA) 5307
grant funds. These Federal resources are available to urbanized areas, with a population of 50,000 or more. The
SLO Urbanized area includes populations of Cal Poly and adjacent county areas which reach the 50,000 population
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City of San Luis Obispo 2019 Transit Fund
Page 3
REVENUES 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Federal 1,488,983$ 1,511,318$ 1,533,988$ 1,556,998$ 1,580,353$ 1,604,058$
State 1,803,544$ 1,830,597$ 1,858,056$ 1,885,927$ 1,914,216$ 1,942,929$
Local 822,991$ 845,634$ 868,941$ 892,934$ 917,533$ 943,118$
Total Revenues 4,115,518$ 4,187,549$ 4,260,985$ 4,335,859$ 4,412,102$ 4,490,105$
criteria. 5307 funds can be used for transit service operating and capital expenses. The federal share for the
funding of any one of these activities is not to exceed 50 percent of operating expenses or 80 percent of capital
expenses of the net project cost. Federal 5307 Transit funds, which make up approximately 38% of the total
operating budget, are projected to continue to grow proportionately during the next two-year fiscal cycle and
five-year outlook. However, unforeseen changes in federal policy can significantly affect transit funding
projections.
State funding assistance is provided to SLO Transit in the form of the State’s Transportation Development Act
(TDA) funding. TDA is comprised of two sources of funding for transportation programs the first is Local
Transportation Fund (LTF) which is derived from ¼ cent retail sales taxes, the second is State Transportation
Assistance (STA) which is derived from the statewide sales tax on diesel fuel. Both funds are distributed to the
regions by the State. San Luis Obispo Council of Governments (SLOCOG)then allocates this amount regionwide to
each of the seven cities, the County of San Luis Obispo, and the Consolidated Transportation Services Agency for
the San Luis Obispo region. LTF funds are apportioned according to population numbers, for: public transit,
street/road improvements and bikeway/pedestrian facilities. STA funds are formula-based and used for public
transit purposes.
TDA funds, 42% of the total operating budget, are also projected to have a modest increase, most of which is
attributed to the supplement of SB1 funds. And while SB1 will likely “shore up” TDA funds, this funding source is
considered volatile due to the fluctuating nature from which they are derived.
State policy requires that annual farebox revenue equal no less than 20% of the total operating budget. The 2018-
19 Fiscal Year farebox ratio is projected to hover around the 20% requirement. Historically, the Transit Fund has
had yearend operating savings that help push the ratio above the 20% minimum.
Local revenue from cash fares, pass sales and Cal Poly uses (an agreement with Cal Poly results in subsidy for
student use), is 20% of the total Transit Fund operating budget, and are also expected to see modest gains; enough
to meet the mandated farebox recovery. No fare increases, beyond the currently scheduled, are anticipated at
this time.
Cal Poly notably plays a considerable roll in the generation of local farebox and the overall health of the Transit
Fund. The last four-year agreement expired June 30th, 2016. Staff has been working with Cal Poly administration
to develop a new agreement. However, there are issues on the University side that have delayed entering in a
new long-term contract. The University has requested a one-year extension with a 3% increase over current costs
for fiscal year 2019-20. This increase is in line with past annual increase for the subsidy agreement.
Packet Page 548
City of San Luis Obispo 2019 Transit Fund
4
In summary, revenues are collected from multiple sources which include:
• San Luis Obispo is a 5307
Small Urban Federal fund
recipient. Subsidy is largely
based on population size.
• San Luis Obispo also receives
TDA funds from the State of
California. Subsidies are
derived from a combination
of area sales tax and an
excise fuel tax; subject to
some volatility.
• The fund is also responsible
for generating no less than 20% of its operating budget and does so via Cal Poly subsidies, pass sales and
cash fares. Transit is projecting a continual growth in ridership.
As illustrated in this chart, approximately 38% of the fund’s revenue comes from Federal sources, 42% from State
sources and 20% generated locally. Combined, funds cover the program’s Operating Costs.
| FUND EXPENDITURES
Operating Programs
Expenditures for the Transit program fall into four main categories: Purchased Transportation, Fuel and
Maintenance, Overhead and Administration, and Cost Allocation.
Purchase Transportation. As a cost saving measure, the City contracts the operations and maintenance of the
transit program to a third-party vendor. The contract is awarded thru a competitive request for proposal process
(RFP), awarding to the organization deemed as “best in value.” This is what is known as Purchased Transportation
(costs). The current contract has been awarded to First Transit Inc. The base four-year contract expires June 30th,
2020. However, there are provisions for up to three one-year extensions. The contractor’s performance and costs
will be evaluated as part of recommending any extensions. Purchase transportation constitutes 64.3% of the total
transit budget.
Despite some unknown associated with not-yet negotiated year-five costs, Purchased Transportation costs are
projected to grow by approximately 3% each year. This growth rate is accounted for in the current revenue
assumptions. However, since the city pays the contractor a variable rate based on the amount of transit hours
provide to the public, any expansion of the transit program in the form of hours will need an additional funding
source.
Fuel and Maintenance costs continue to escalate and constitute roughly 13.2%. Many of the current diesel fleet
are approaching the end of their FTA defined “useful-life.” The aging fleet also therefore requires more
maintenance and upkeep. Fuel costs have also seen a recent return to high prices. While the program generally
0
1000000
2000000
3000000
4000000
5000000
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Transit Revenues
Federal State Local Total Revenues
Packet Page 549
City of San Luis Obispo 2019 Transit Fund
Page 5
accounts for fluctuations in fuel prices, any further and excessively prolonged fuel costs may have negative
impacts on the transit budget.
Overhead and Administration is the programs third biggest costs, roughly 12.8%. These costs are for the salary
and benefits of the three fulltime transit employees, production and print of transit materials and guides, non-
Purchased Transportation related contracts with various vendors, technology procurements and/or service
agreements, auditing and accounting services, advertisement and public engagement programs, association fees,
training and office supplies and other program related materials. These costs have been maintained relatively
flat.
Fiscal Health Response Plan. The Transit program is responsible for its share in addressing the pension liability
shortfall. However, given the size the of the dedicated transit staff, the costs can be absorbed within the current
overhead and administration operating budget with no effects to the current level of service.
Cost Allocation Plan is a method for calculating the support and expenses incurred, for time dedicated to
managing Transit related projects by other non-transit related City Departments. The Cost Allocation Plan, which
also affects the performance of farebox ratio, is considered a Central Service Cost Allocation plan by the Federal
Transit Administration. FY 2018-19 cost allocation is 5% above the original 2018-19 adopted amount of $381,760
at $399,709 and has some negative impacts to the fund, should the trend of percentage increase continue. Cost
allocation constitute 9.6% of the total operating budget.
Expenditures will continue to be mitigated to reflect revenue levels. As previously stated, Transit’s obligation to
recover 20% of its total operating costs will ultimately determine service levels. Some system efficiencies derived
from implementing initial parts of the Short-
Range Transit Plan (SRTP), such as reduced fuel
costs, are helping. However, these savings are
being offset by increasing annual operating
costs. During the second year of this fiscal cycle
the Transit program enters into unknown
contract costs of a possible Year 5 – if an
extension is exercised - in its Transit Operations
& Maintenance Contract with First Transit Inc. In
anticipation, Staff is currently working with the
Contractor to identify Year 5 through 7 costs as
far in advance as possible and plan accordingly.
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
EXPENDITURES
Purchased Transportation 2,683,962$ 2,738,224$ 2,792,617$ 2,847,143$ 2,902,051$ 2,957,227$
Fuel & Maintenance 550,754$ 553,578$ 556,444$ 559,353$ 562,306$ 565,303$
Overhead/Admin 537,909$ 539,747$ 544,996$ 550,389$ 555,889$ 561,499$
Cost Allocation 399,709 407,703 409,742 413,839 417,978 422,157
Total: 4,172,334$ 4,239,252$ 4,303,799$ 4,370,724$ 4,438,224$ 4,506,187$
0
1000000
2000000
3000000
4000000
5000000
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Transit Expenditures
Purchased Transportation Fuel & Maintenance
Overhead/Admin Cost Allocation
Total Expenditures
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City of San Luis Obispo 2019 Transit Fund
6
Besides some cost neutral reallocation of transit funds within line items, to better reflect historic trends and
changes in operational needs, there are no Significant Operating Budget Changes (SOBC’s) to the transit fund as
the program anticipates maintaining status quo level of service until additional revenue sources materialize.
| Operational Summary
Revenues are projected to sufficiently keep pace with escalating costs. However, any significant changes, such
as the expansion of the transit program, will require additional funding sources. Federal 5307 Transit funds,
which make up 38% of the total operating budget, are projected to continue to grow proportionately during the
next fiscal cycle and five-year outlook. Granted staff remains cautious as today’s political climate could have
adverse effects on these funds. State Transit Development Act (TDA) funds, 42% of the total operating budget,
are also projected to have a modest increase,
most of which is attributed to the supplement
of SB1 funds. Local revenue from cash fares,
pass sales and Cal Poly subsidy, 20% of the
total operating budget, are also expected to
see modest gains; sufficient to meet the
mandated farebox recovery requirement of
equaling no less than 1/5th of the total
operating budget. No fare increases, beyond
the currently scheduled, are anticipated at
this time.
| Capital Improvement Plan
The City of San Luis Obispo Transit Division maintains several capital assets
1. 17 Revenue Vehicles and 2 Support Vehicles
a. 14 Heavy Duty Bus
b. One Double Decker Bus
c. One Trolley Replica Bus
d. One Cut-Away (Ford Chassis) Bus
e. One Utility Truck
f. One Supervisor/ADA Supplement Vehicle
2. Operations & Maintenance Facility
3. Bus wash system
4. Transit Center with Sawtooth bays and four deluxe shelters
5. 165 bus stops
CHANGES IN FINANCIAL POSITION 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Revenues Over/Under Expenditures (60,976)$ (52,555)$ (38,416)$ (25,073)$ (10,829)$ (66,606)$
Working Capital - Year End 2,700,000$ 2,752,555$ 2,790,971$ 2,816,044$ 2,826,872$ 2,893,479$
Operating Reserve 835,299$ 848,021$ 859,880$ 872,186$ 884,586$ 911,342$
Unfunded Liability 49,050$ 50,520$ 50,521$ 50,522$ 50,523$ 50,524$
Unreserved Working Capital - Year End 1,815,651$ 1,854,014$ 1,880,570$ 1,893,336$ 1,891,763$ 1,931,612$
$3,800,000
$4,000,000
$4,200,000
$4,400,000
$4,600,000
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Revenues vs Expenditures
Revenues Expenditures
Packet Page 551
City of San Luis Obispo 2019 Transit Fund
Page 7
Capital needs are based on federally approved “useful-life” criterion and best-case scenarios for replacing aging
equipment.
Capital Improvement Plan Project Expenses 2019-24
Capital projects continue to be a challenge for the Transit Enterprise Fund which is completely reliant on being
awarded scarce and competitive discretionary grants. Thus, the forecasted expenditures do not take into account
proposed CIP expenditures.
Capital assistance grants, such as: Low Carbon
Transit Operations Program (LCTOP), Senate
Bill 1 (SB-1) State of Good Repair (SGR), and
the remaining amount of Prop 1B and Public
Transportation Modernization, Improvement,
and Service Enhancement Account Program
(PTMISEA) (both now discontinued) are
helping in deliver on some minor, and yet
important, capital projects for the Transit
program. However larger projects, such as
fleet replacement and expansion are yet to
have an identified funding source beyond
Working Capital reserves as such, without funding they will not happen. As mentioned previously, Capital needs
are based on federally approved “useful-life” criterion and best-case scenarios for replacing aging equipment. The
biggest capital expense for the program by far is replacing aging vehicles. No less than ten vehicles will be meeting
the end of their useful lives in the next five years and their replacements are dependent upon funding sources
being identified as working capital is insufficient.
Capital 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Bus Replacement - Diesel $1,040,000 $3,120,000 $825,000 $520,000 $1,040,000
Diesel Bus - Expan (+6)$3,120,000
Double Decker Expansion (+1)$1,600,000
Bus Wash $400,000
Total $1,040,000 $3,120,000 $3,945,000 $2,000,000 $520,000 $1,040,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Transit CIP's
Bus Replacement - Diesel Diesel Bus - Expan (+6)
Double Decker Expansion (+1)Bus Wash
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Further, given the California Air Resource Boards (CARB)
mandate for zero emission vehicles, and albeit just
outside of the five-year forecast, staff is already working
towards the mandated electrification of the fleet.
However, given the exponential infrastructure and
vehicle costs associated with such a conversion,
additional funding will be necessary for this conversation
along with regional collaboration on achieving zero
emission fleet is being highly sought after.
| OUTLOOK OF THE TRANSIT FUND
The outlook of the Transit program has some unknowns that it is working to mitigate. Negotiations with Cal Poly
University remain crucial to the program as they represent the highest consumer group. Regional entities such as
the San Luis Obispo Regional Transit Authority (SLO RTA) are seeing their own cost increases and internal
challenges, which will require more from the regions limited and shared funds. Regardless, based upon the
conservative revenue projections, available working capital and forecasted expenditures the Transit Fund remains
positive over the 5-Year Forecast, outside of anomalies.
Despite these unknowns, the Transit Enterprise Fund closes out 2017-19 budget cycle with a balanced budget and
has done so year after year. The Fund holds approximately $2.7 Million in Working Capital. These funds are
necessary as part of a fiscally prudent operating reserve to help weather any volatility in revenues. Amounts in
excess of the 20% reserve will be used as local “matching” funds - if not fund in whole - transit capital projects
that are yet to have an identified federal or state assistance grant. The fiscal outlook for the next five years
continues to require that expenditures be mitigated to reflect revenue levels.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
Ev. Costs Vs. Diesel Costs
Diesel Fleet Electric Fleet
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Salinas Reservoir, February 2019.
Department Name: Utilities
Cost Center:
For Agenda of: June 4, 2019
Placement: Public Hearing
Estimated Time: 30 minutes
FROM: Aaron Floyd, Utilities Director
Prepared By: Jennifer Metz, Utilities Project Manager
Jennifer Thompson, Utilities Business Manager
Michelle Bulow, Interim Administrative Analyst
SUBJECT: 2019 WATER FUND REVIEW
RECOMMENDATION
1. Review and approve the 2019 Water Fund Review; and
2. Conceptually approve the 2019-20 Water Fund financials and budget with final action on
June 18, 2019 with adoption of 2019-21 Water rates.
DISCUSSION
Overview
After a year of above average rainfall (see Table
1), the City’s reservoirs are full or nearly full. With
the drought behind us for now, the City continues
to embrace conservation as a way of life and
progress toward its climate action goals.
Management of the water utility includes attention
to these issues, as well as regulatory compliance,
workforce development and training, water rights,
groundwater management, aging infrastructure,
environmental protection, and fiscal health.
Table 1: Rainfall Comparison - Average, 2018, and 2019 (through May 20, 2019) in Inches
Rainfall Measurement
Location Watershed
Annual
Average
Rainfall
Water Year 2018
Total Rainfall
Water Year 2019
Rainfall
Rocky Butte Nacimiento
Reservoir 40 29.4 52.08
Hwy 46 and W 7 Mile
Road, Cambria, CA
Whale Rock
Reservoir 30 16.9 27.26
SLO Reservoir City 24 12.9 26.87
Salinas Dam Salinas Reservoir 22 12.3 32.18
Source: https://wr.slocountywater.org/list.php?sensor_class=11&mode=sensor&cache=1&refresh=off Table 1
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The City implemented a new water rate structure and water rates in July 2018 based on the
City’s comprehensive Water and Wastewater Cost of Service Study (2018 Study). With nine
months of data collected under the new water rate structure and rates, Water Fund revenue
allocation has shifted to generating 25 percent from fixed charges and 75 percent from variable
charges. Collecting a larger percentage of revenue from fixed charges creates greater revenue
stability because a smaller percent of revenue will vary based upon water usage. Although new
capital costs were identified during financial planning for the 2019-21 period, recommended
water rate increases are in line with the projected rates identified in the 2018 Study.
The City’s Water Fund financials are recognized as an enterprise fund and its operating, capital
and debt service expenditures are covered by rates and fees paid for the services it renders. The
Water Fund financials for the upcoming City budget are reviewed and approved by the City
Council together with the City’s overall two-year Financial Plan.
In 2019, the Water Fund collects fees from approximately 15,500 accounts to cover the cost for
water services operation and infrastructure. The Fund is comprised of five programs1 that support
the different elements involved in providing water services to San Luis Obispo customers.
Water Fund Review
The 2019 Water Fund Review (Attachment A) provides an in-depth look at changes in financial
position, revenue and operational assumptions, an update on major activities and programs, and
incorporates key financial impacts. To arrive at the proposed 2019-21 budget, the analysis
utilized past revenue and expenditure data as well as projected future levels to determine the
financial resources needed to fulfill all obligations. Attachment A provides a more
comprehensive review of the Water Fund than the information contained in the Business
Activities section of the financial plan.
Revenues
Water Fund revenues are collected from multiple sources. Approximately 90 percent of Water
Fund revenue is tied to water service charges. The City has experienced high dev elopment
activity over the past few years, which was reflected in the levels of impact fees collected. Staff
continues the forecast with conservative assumptions as to this volatile revenue.
Sales to Cal Poly are expected to remain flat as the University’s effort to conserve water
continues. Cal Poly pays a portion of the applicable rate as it has its own water supply in Whale
Rock Reservoir and pays the City for water treatment and distribution only.
Operating Expenditures
The Water Fund’s operating and capital budgets are evaluated by reviewing historic expenditures
and assessing the upcoming need for infrastructure and the five operating programs that maintain
and service it. The operating cost include salaries, benefits, contract services, operating material
(including utilities and chemicals), training, and minor capital for the Fund’s five programs.
1 Water Fund programs include Water Distribution, Water Treatment Plant, Water Source of Supply, Water Resources, and
Water Administration & Engineering.
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For the upcoming fiscal year, the operating budget also includes one-time and on-going increases
in operating costs were identified for the Water Funds. Increased operating costs include
electricity, chemicals, equipment maintenance and repairs, contract services, warranties,
licensing, training, and regulatory fees.
Capital Expenditures
A number of water and wastewater projects will be under
construction in 2019-21 addressing aging infrastructure
and regulatory requirements. Projects include water line
replacements in the neighborhood around Sierra Vista
Hospital (on Casa, Stenner, and Murray Streets), and new
water infrastructure at the Terrace Hill water tank site
located on Bishop Street.
The City will also be implementing water quality
improvements and energy efficiency upgrades at the
Water Treatment Plant located in Stenner Canyon.
Regional waterline projects include pipeline repairs to the Salinas Reservoir pipeline that
delivers water to the City and relocation of a pipe bridge associated with the Nacimiento Water
Project. These regional projects are paid for by City’s water ratepayers and implemented by the
County.
Debt Obligations
The Water Fund carries obligations for four debt services, including the recycled water system.
The debt for the Nacimiento pipeline is carried in the operating program under Source of Supply
and therefore not showing under debt obligations. The Fund is programmed to seek additional
debt to fund the Water Energy Efficiency Project in 2019-20 and the replacement of Reservoir 2
in 2022-23. The presented financials include these assumptions.
Total Fund Revenue & Expenditures
Below is a comparison of the Fund’s collected or anticipated revenue and total expenditures. In
2019-21, revenue includes $14,300,000 debt financing proceeds and the corresponding capital
expenditure for the Water Energy Efficiency Project.
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$- $7,000,000 $14,000,000 $21,000,000 $28,000,000 $35,000,000
2017-18
2018-19
2019-20
2020-21
Revenue & Expenditures
Expenditures Revenue
Table 2
Water Rate Setting
The goal of the rate setting process is to provide sustainable funding to the City’s Water Fund for
operation, maintenance, and capital project needs. Rates must be developed that are equitable,
and cost-based in compliance with California Constitution Article XIII C and D, commonly
referred to as Proposition 218 (Prop 218).
The City completed a Comprehensive Water & Wastewater
Rate Study (Rate Study) in May 2018 and the new water rate
structure and water rates were approved in June 2018
consistent with the Council’s rate structure goals. The new
water rate structure and water rates were implemented in July
2018.
In January 2019, the City hired HDR to review revenue under
the newly implemented rate structure and rates to confirm
Council’s goals were being met. Findings from that analysis
include an increase in water fund revenue from fixed charges
to achieve revenue and rate stability and predictability. Prior
to completing the water rate structure changes, 14 percent of water fund revenue came f rom
fixed charges and 86 percent came from variable charges. Under the water rate structure that was
implemented in July 2018, 25 percent of water fund revenue is from fixed charges and 75
percent from variable charges.
Based on the recommendations of the Water and Wastewater Rate Study Update, the City’s
proposed water rates for 2019-21 are provided in the Water Fund Review (Attachment A).
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Proposition 218
Under Proposition 218, property owners and/or customers
directly responsible for the payment of the fee subject to the
proposed rate increase may submit a written protest against
the proposed rate increases. The protest must be submitted on
the form provided, received by the City Clerk at or before the
public hearing on June 18, 2019, identify what is being
protested, and contain the service address. The party signing
the protest must be listed on the account as the person
responsible for payment of the water bill and/or the property
owner. In the event that a protest is submitted by the owner
and by the tenant responsible for payment of the bill, then
one valid protest is counted for the account.
If written protests are filed by a majority (50 percent plus
one), the proposed water rate may not be imposed. For the
proposed water rate, a majority of 15,318 customers is 7,659
plus one. As of May 13, 2019, approximately 400 written protests have been received by the
Office of the City Clerk. All protests will need to be validated regarding property ownership and
duplicate addresses. The City Clerk will provide an updated summary of the protests received at
the conclusion of the Water Fund Review public hearing on June 18, 2019.
CONCURRENCE
The City’s Finance Department concurs with the recommended action.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action, because
the action does not constitute a “Project” under CEQA Guidelines Sec. 15278.
FISCAL IMPACTS
Budgeted: Yes Budget Year: FY 19-20 and FY 20-21
Funding Identified: Yes
Attached to this report is a detailed analysis of the Water Fund revenues, expenditures, and
changes in financial position. The 2019 Water Fund Analysis includes the key assumptions
used in preparing Fund projections. W ith the proposed rate increases, the analysis presented to
Council in this report and in the Preliminary 2019-21 Financial Plan, demonstrate sufficient
funds to support operations, capital projects, and debt service needs of the Water Fund.
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ALTERNATIVES
Council, at its discretion, can approve all or part of the 2019 Water Fund Review. Staff believes
that the services, operating programs, and CIP components of the Water Fund represented are
consistent with prior policy/program direction of the City Council and required for compliance
with state and federal laws. Therefore, not approving the entire Water Fund Review is not
recommended.
Attachments:
a - 2019 Water Fund Review
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WATER FUND
REVIEW
2019
June 4, 2019 City of San Luis Obispo
Utilities Department
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Page 1
TABLE OF CONTENTS
I. OVERVIEW
II. Key Assumptions
III. 2019-21 FINANCIAL PLAN
a. Revenue
i. Water Service Charges
ii. Cal Poly
iii. Development Impact Fees
b. Fund Expenditures
i. Operating Programs
ii. Capital Improvement Plan
iii. Debt Service
iv. Fund Summary
IV. MAJOR ACTIVITIES AND PROGRAMS
a. 2018-19 Update
b. 2019-21 and Forecast
V. WATER RATE SETTING
a. Water Rate Structure
b. Proposed Water Rate Changes
EXHIBIT A – FINANCIAL SCHEDULES
A.1 Fund Analysis
A.2 Assumptions for Fund Projections
A.3 Capital Improvement Plan
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Overview
After an above-average year of precipitation, the City’s three surface water reservoirs are at, or near full capacity.
This, along with the expansion of our groundwater program, analysis of increased recycled water deliveries,
consideration and adjustment of our water supply accounting to account for the impacts of the climate change,
and the community’s strong water conservation ethic have set the course for the City’s long-term water supply
health.
The City is in its first year of billing following a significant change in the water rate structure. With the significant
rain this year, and the corresponding low water use, the new rate structure was tested and shown to provide fund
stability in years with unusually low water demand. After a thorough analysis, the rate structure improvements
and forecasted rate increases ensured the fiscal health of the Water Fund.
Improved revenue stability has assisted in the City completing several capital improvement projects needed to
improve the resiliency of critical infrastructure, improve water quality, and meet the strategies outlined in the
City’s Potable Water Distribution System Operations Master Plan. Through a strong partnership with the Public
Works Department, and increased efficiencies, project completion rates have improved, and several previously
adopted infrastructure projects were completed this year. These projects include completion of the Water
Supervisory Control and Data Acquisition (SCADA) Upgrade which made improvements to 23 water distribution
sites, including nine water tanks, six pump stations, eight pressure regulating valves (PRVs), and four sites
associated with Whale Rock Reservoir. The City is also completing replacement of waterlines on Boysen (from
Chorro to Santa Rosa), Pacific (from Nipomo to Walker), Sierra Way (from Ella to Bishop), and on Chorro Street
(from Pacific to Pismo).
The City of San Luis Obispo’s source water, water treatment, water distribution, water conservation, and recycled
water services are administered and maintained through the Utilities Department’s Water Division. The financials
are recognized as an enterprise fund, as all facets of the operation and maintenance of capital assets are financed
through rates charged for services.
The Water Division is responsible for:
Operating Program Core Function
Water Source of Supply This program provides the funding for the City’s three surface reservoirs:
Nacimiento, Salinas, and Whale Rock. Recycled Water is also included as
one of the water sources for irrigation and 0.7 FTEs are allocated to this
effort.
Water Treatment Treating 1.7 billion gallons of raw water annually from three surface
reservoirs.
Water Distribution Maintaining 145 miles of distribution lines, 10 water tanks, 15 pressure
zones, 15,100 water meters, and 2,000 fire hydrants.
Water Resources Provides water conservation and customer service assistance to Utilities’
customers.
Water Administration and Engineering Oversight of 34.5 employees, capital projects, engineering, safety, and
overall fund administration.
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Key Assumptions
When preparing the budget, the Water Division analyzes past financial results, reviews upcoming operational and
capital needs, current and future debt obligations to assess the financial position of the fund for its continued
health. The budget prepared for the two-year financial plan follows a “zero based budgeting” approach,
considering each line item and its future needs. Asset condition, infrastructure age, and future capacity needs are
driving factors in determining the Capital Project plan and debt financing evaluations.
The needed revenue is then evaluated based on current rates and income levels, analysis of current water use
and effects on future revenue potential to provide a rate recommendation and possible increases.
2018-19 Financial Plan
REVENUE
As an enterprise fund, the Water Division finances its operation mainly with rates charged for water services.
According to its mandate, rates must be sufficient to cover operation, capital asset improvements and
maintenance, debt obligations, and appropriate reserve levels to keep the fund healthy and prepared for
unforeseen and future funding needs.
Revenues are collected from multiple sources which include:
• Water Service Charges combining a base fee and volumetric charge per unit
• Sales to Cal Poly
• Development Impact Fees
• Miscellaneous charges such as account set-up fees, late charges, meter sales, and connection fees
• Investment and Property Revenue
As illustrated in this chart, approximately 90% of the fund’s revenue comes from water services charges of which
the base fee amounts to 11.4% of revenue in 2016-17, growing to 13.75% in 2017-18.
Water Service Charges: Revenue projections for water service charges are based on the Comprehensive Water
and Wastewater Cost of Service Study, completed in 2018, and the Confirmation Study completed in 2019. These
studies included review of approximately 15,500 active water accounts (including dedicated irrigation accounts)
using the most recent 12-month period. The total monthly usage and billed amounts are compared against actual
revenues received for the same period. The data sets are pulled from the City’s utility billing software program to
capture the most recent usage trends by customer account type and by individual residential accounts. Historical
data for all customer classes is analyzed to assess revenue stability in the current fiscal year, to forecast usage,
and to gauge the previously forecasted water rates for revenue adequacy in the rate setting process.
Cal Poly: Revenue projections for Cal Poly are based on the 2012 Agreement between the City and the University.
This agreement set the methodology of the non-residential rate the University pays to account for the University’s
own water supply in Whale Rock. For 2019-20, the rate will be 53 percent of the regular volumetric rate.
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Development Impact Fees: These fees become due when new development “buys” into the Water system that
was sized and constructed to accommodate population growth. After the Great Recession, San Luis Obispo
continues to experience significant construction activity. However, collection of water development impact fees
has diminished from a 2014-15 high of $2,471,502 to $2,131,345 in 2017-18 (see Table 2, below). The City’s water
development impact fees were updated in 2018, increasing from $11,322 per equivalent dwelling unit to $11,872
per equivalent dwelling unit for 2018-19. The Water Fund analysis takes a conservative approach as to future
development impact fee collection levels.
Table 1
Revenue Summary with revised 2018-19 budget and Financial Plan Assumption 2019-21
Revenues Actual
2017-18 2018-19 2019-20 2020-21
Investment and Property Revenues 127,950$ 50,000$ 50,000$ 100% 50,000$ 100%
Water Service Charges 17,326,213$ 15,308,969$ 16,145,462$ 105% 17,027,962$ 105%
Water Base Fee 2,239,418$ 4,826,204$ 5,091,645$ 105% 5,371,686$ 106%
Development Impact Fees 2,131,345$ 800,000$ 800,000$ 100% 800,000$ 100%
Other Revenue 718,482$ 445,900$ 298,500$ 67% 299,010$ 100%
Debt Proceeds 84,601$ -$ 5,500,000$ 8,800,000$ 160%
Total Revenue 22,628,009$ 21,431,073$ 22,385,607$ 104% 32,348,658$ 145%
Projected
Table 2
$819,477
$2,471,502 $1,542,268 $1,266,674 $2,131,345
2013-14 2014-15 2015-16 2016-17 2017-18
DEVELOPMENT IMPACT FEES
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FUND EXPENDITURES
Operating Programs
The Water Division’s five operating program costs are summarized below. The summary reflects the net operating
program budget amounts for the 2019-21 Financial Plan. A rigorous and thorough review of operating cost was
conducted in collaboration with each program supervisor to derive the budget necessary to provide the
community with safe and reliable drinking water.
Table 3
Proposed Changes to Operating Programs
There are several proposed significant operating budget changes for the Water Fund.
• A one-time increase to Source of Supply operating program budget due to the Salinas Pipeline repair
project, Santa Margarita pipeline relocation and the Army Corp of Engineers assessment (once every five
years). Ongoing increases are due to County Utility Operations staff returning to full staffing levels.
• An ongoing increase due to additional electrical service at existing pump stations associated with the
Telemetry Upgrade Project.
• A one-time increase for the purchase of new leak detection equipment.
• The Water Treatment Plant expects increased operations and maintenance costs, overtime costs, and
increased chemical costs due to vendor pricing. In addition, there is a one-time increase to cover specific
maintenance needs.
• An ongoing increase in the Water Administration and Engineering program to maintain the future need
for new and ongoing regulatory, organizational, and infrastructure study services.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Water
Admin
Source of
Supply
Water
Treatment
Distribution Utility
Services
General
Government
Expenditures 2018-19 Expenditures 2019-20 Expenditures 2020-21
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Significant Operating Budget Changes One-Time Ongoing
2019-20 2020-21 2019-20 2020-21
1 Nacimiento Operating Expenses $255,500
2 Salinas Reservoir – Pipeline Repair $1,750,000 $142,000 $142,000
3 Water Distribution- Electric Service $9,000 $9,000
4 Water Distribution-Equipment $25,000
5 Water Treatment-TTHM $102,620 $102,620
6 Water Treatment-Chemicals $40,895 $41,391
7 Water Treatment Plant Equipment $10,000 $10,000
8 Water Treatment Plant- Electric $13,000 $13,000
9 Water Treatment Plant Overtime $42,000 $42,000
10 Water Administration-Various Studies $37,550 $37,550
11 CIP Engineering Staffing $71,101 $71,101 $73,537 $73,537
Water Fund Subtotal $2,153,601 $123,101 $418,602 $419,098
Table 4
The most significant non-staffing operating costs for water services are: (1) Nacimiento debt and operation cost;
(2) chemicals for raw water treatment; (3) electric utility services for water treatment and distribution; and (4)
cost of service paid to the General Fund.
1. The City of San Luis Obispo’s portion in Nacimiento including its debt obligation is included in the Water
Fund’s operating budget under a portion of Source of Supply. The annual payment will amount to:
2019-20 $7,315,337
2020-21 $7,385,505
2. Chemicals go out to bid on an annual basis with chemical contracts running from March 1 through
February 28. For budget development purposes, any potential changes to treatment processes are
evaluated and dosage amount for chemicals calculated. The measured chemical quantity is used to
develop the budget.
3. Electric utility rate assumptions, as provided by PG&E, include a rate increase of 4% for both fiscal years.
4. The cost for General Government is assessed with the City’s annual cost allocation plan and will be
reflected as a transfer between the Water and the General Fund.
Expenditure by Function
2018-19 2019-20 2020-21
Budget Budget Budget
General Government 2,432,643$ 2,670,367$ 2,721,448$
Water Source of Supply 10,689,139$ 12,530,947$ 10,339,506$
Water Treatment 5,079,703$ 14,039,973$ 14,737,216$
Water Distribution 2,349,131$ 3,163,914$ 4,341,265$
Utilities Services 486,936$ 374,565$ 387,828$
Water Administration 920,215$ 793,989$ 788,633$
21,957,767$ 33,573,755$ 33,315,896$
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Table 5
Capital Improvement Plan
The City of San Luis Obispo Water Division maintains a complex infrastructure including:
Water Treatment Plant treating 1.9 billion gallons of raw water annually from three surface
reservoirs
145 miles of water distribution pipes
10 storage tanks, and 15 pressure zones
15,300 water connections
2,000 fire hydrants
Capital expenses are forecast based on infrastructure maintenance and repair history, individual project budget
estimates, regulatory requirements, and projected changes in community demographics. Maintaining the water
system infrastructure, including major equipment upgrades, ongoing treatment processes, technology, and
planning for long-term infrastructure upgrade and replacement is essential to providing protective and reliable
water services for the community.
Capital Improvement Plan Project Expenses 2019-24
Project budget estimates in the capital plan forecast include inflationary adjustments assuming a moderate
increase in material costs over time (e.g., price per foot of pipe). The 2019-24 five-year CIP program continues
investments in the City’s water infrastructure and begins the pressure zone consolidation per the new water
model findings. Also, included in the capital plan is the construction of the Water Treatment Plant Energy
Efficiency Project, which will reduce electrical demands by using best available technologies for water disinfection,
and construct a hydroelectric generation facility that will get us closer to an energy neutral facility. A detailed
listing of the capital improvement projects can be found in Exhibit A.3.
Table 6
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Debt Service
The following is a summary of the current debt obligations of the Water Fund. The largest debt obligation which
is its share in Nacimiento is not listed here as it is part of the Fund’s operating budget under Source of Supply.
1. Debt service for 2018 Water Revenue Refunding Bond amounts to $883,900 in 2019-20 and
$892,300 in 2020-21.
2. Debt service for the 2012 Water Revenue Refunding Bonds is $567,800 in 2019-20 and $568,400 in
2020-21.
3. Debt service for the repayment of the State Revolving Fund loan for the construction of the Water
Reuse system is $525,4576 annually for 2019-20 and 2020-21.
4. Debt service for the Water Fund’s share of the Water Resource Recovery Facility Upgrade Project is
$152,010 annually for 2019-21.
5. Debt service for the Water Fund’s proportionate share of the City’s Public Safety Communications
Center is $28,500 for 2019-20 and $28,400 in 2020-21.
6. Debt service is currently projected in the long-term financial forecast at $979,943 annually
beginning in 2019-20 for the Water Energy Efficiency project, based on total project costs currently
estimated at $14.3 million. Study and design of the upgrade will be paid for by the Water Fund.
7. The Ten-Year Forecast also includes debt service for the replacement of Reservoir 2 beginning in
2022-23 for the pressure zone consolidation of the Water Distribution system. The annual debt
service cost for the $13.5 million project is estimated at $825,616 with design being paid for by the
Water Fund.
| Fund Summary
The fiscal condition of the Water Fund is sound. The adopted rate structure has allowed for revenue stability, in
light of changing weather patterns. This stability of the fund has allowed the Water Division to make aggressive
steps toward addressing the long-term issues associated with aging infrastructure. The Water Division continues
to look for opportunities to improve efficiencies and do business different, including the proposed investment in
the Water Energy Efficiency project to assist with meeting electricity needs through on-site generation.
Table 7
$- $7,000,000 $14,000,000 $21,000,000 $28,000,000 $35,000,000
2017-18
2018-19
2019-20
2020-21
Revenue & Expenditures
Expenditures Revenue
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Table 8
Table 9
CHANGES IN FINANCIAL POSITION
This section summarizes changes in financial position for the Water Fund. Working capital represents the excess
of current assets over current liabilities. The Water Fund maintains a minimum working capital balance of 20% of
operating expenditures. This is considered the minimum level necessary to maintain the Fund’s credit worthiness
and to adequately provide for economic uncertainties, unforeseen operating and capital needs, and cash flow
requirements.
MAJOR ACTIVITIES AND PROGRAMS
2018-19 Update
Expenditure by Category
2018-19 2019-20 2020-21
Budget Budget Budget
Salaries & Benefits 4,120,798$ 4,137,824$ 100% 4,274,596$ 103%
Operating Expenditures 11,851,066$ 13,508,070$ 114% 11,522,977$ 85%
Capital Outlay 1,093,652$ 10,251,287$ 937% 11,777,848$ 115%
Debt Service 1,995,859$ 2,543,134$ 127% 2,552,134$ 100%
Transfers Out 2,432,259$ 2,670,367$ 110% 2,721,449$ 102%
Total 21,493,634$ 33,110,682$ 154%32,849,004$ 99%
Expenditure by Function
2018-19 2019-20 2020-21
Budget Budget Budget
General Government 2,432,258$ 2,670,367$ 110% 2,721,448$ 102%
Water Source of Supply 10,689,139$ 12,530,947$ 117% 10,339,506$ 83%
Water Treatment 4,615,955$ 13,500,895$ 292% 14,194,319$ 105%
Water Distribution 2,349,131$ 3,163,914$ 135% 4,341,265$ 137%
Utilities Services 486,936$ 374,564$ 77% 387,828$ 104%
Water Administration 920,215$ 869,995$ 95% 864,638$ 99%
21,493,634$ 33,110,682$ 154% 32,849,004$ 99%
Changes in Financial Position
2018-19 2019-20 2021-21
Budget Budget Budget
Working Capital - Beginning 25,457,367$ 25,394,806$ 20,169,731$
Revenues over (under) Expenditure (62,561)$ (5,225,075)$ (500,345)$
Working Capital - Year End 25,394,806$ 20,169,731$ 19,669,386$
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1. Regulatory Requirements
The City’s Water Distribution staff reimplemented a hydrant and dead-end flushing program to help move
aging water throughout the system. In the late summer of 2018, disinfection by-products readings were
nearing the regulatory exceedance levels. This upward trend in disinfection by-products was exacerbated
by the warmer water temperatures in the source water supplies during summer, water conservation, and
the City’s water resiliency supply strategy that prioritizes water use from reservoirs in the North County
where organic material, a precursor to disinfection by-products, is more prevalent.
2. Water Energy Efficiency Project
In support of the City’s Climate Action goals, environmental stewardship and operational efficiency, the
Utilities Department participated in an energy assessment of its water operations, including the water
supply, treatment, and distribution systems beginning in 2017. In April 2018, Council authorized
participation with Pacific Gas and Electric Company’s (PG&E’s) Sustainable Solutions Turnkey (SST)
Program for the Water Energy Efficiency Project. The Project’s Investment Grade Audit is analyzing several
energy saving projects within the City’s Water Treatment Plant. This includes analysis of energy usage,
electricity generation, equipment lifecycle, and optimization strategies, an audit defines project scope and
provides a baseline for energy conservation measures.
3. Supervisory Control and Data Acquisition (SCADA) Project
The City’s Water SCADA Project, described previously, was completed in late 2018 under budget by
approximately $200,000. This allowed that savings to be used for another priority Water Fund capital
project.
2019-21 and Forecast
1. Water Distribution System Improvements
In the upcoming Financial Plan period (2019-21), the community will be seeing a number of projects
underway to address aging infrastructure including water line replacements in the neighborhood around
Sierra Vista Hospital (on Casa, Stenner, and Murray Streets), and new water infrastructure at the Terrace
Hill water tank site located on Bishop Street.
2. Source Water Infrastructure Projects
Regional waterline projects include pipeline repairs to the Salinas Reservoir pipeline that delivers water
to the City and relocation of a pipe bridge associated with the Nacimiento Water Project. These regional
projects are paid for by City’s water ratepayers and implemented by the County.
3. Water Quality Improvements
Design of the Water Treatment Plant and Water Distribution System Disinfection Byproduct Reduction
Project is underway, and construction is scheduled for late 2019. The Project includes installation of
equipment to effectively reduce substances known as disinfection by-products to meet regulatory
requirements. Selected locations include Clearwell 2 within the Water Treatment Plant and at Edna Saddle
Tank. The total project cost is estimated at $1.85 million; a portion of the project funding is from savings
on the Water SCADA Project, described above.
2. Water Energy Efficiency Project
The City will also be implementing energy efficiency upgrades at the Water Treatment Plant located in
Stenner Canyon, which will also serve to lower carbon emissions. The Water Energy Efficiency Project
focuses on Water Division operations that would reduce energy consumption, optimize the control of
energy-consuming systems, and generate energy on-site from renewable sources. The total project cost
is estimated at $14.3 million.
Packet Page 571
City of San Luis Obispo 2019 Water Fund
Page 11
WATER RATE SETTING
The goal of the rate setting process is to provide sustainable funding to the City’s Water Fund for operation,
maintenance, and capital project needs. Rates must be developed that are equitable, and cost-based in
compliance with California Constitution Article XIII C and D, commonly referred to as Proposition 218 (Prop 218).
Water Rate Structure
The City began reviewing its water rate structure in July 2017. At that time,
the City’s water rate structure is mainly driven by discouraging wasteful use
and did not differentiate between customer classes, meaning there is no
difference in the fixed and consumption charges to a residential customer, a
commercial business or office, or a multi-family apartment complex.
Study sessions were held in July and August 2017, to provide the Council and
community with an introduction to water rate concepts, terminology, and
the review of rate structure goals. In January 2018, the City Council directed
staff to incorporate the updated water rate structure into a comprehensive
rate study and into the water fund analysis. Key changes to the water rate
structures in alignment with the City Council’s goals are:
• A greater percent of revenues collected through the fixed portion of
the water rates.
• The number of tiers for residential water users will be increased from two to three.
• The fixed portion of the water rates for multi-family, non-residential, and irrigation customers will be
based on meter size.
• All water usage for multi-family, non-residential, and irrigation customer classes will be charged at a per
unit cost associated with each customer class.
Comprehensive Water Rate Study
In October 2017, the City hired HDR Engineering, Inc. (HDR) to prepare the comprehensive rate study. The study
provides the necessary documentation and an administrative record of the cost basis for the City’s proposed water
rates in compliance with Prop. 218, section 6 which regulates fees and charges for property related services such
as water rates. In accordance with the provisions of Prop. 218, water rates are designed based on a cost-of-service
methodology that fairly apportions costs to all customers.
A study session on was held with the City Council in February 2018 to discuss the methodology used for water
rate setting, including a revenue requirement analysis; a cost of service analysis; and rate design analysis,
incorporating the City Council’s rate structure goals described above. The product of the analysis, the
Comprehensive Water & Wastewater Rate Study (Rate Study), was presented in the May 2018 and the new water
rate structure and water rates were approved in June 2018. The new water rate structure and water rates were
implemented in July 2018.
In January 2019, the City hired HDR to review revenue under the newly implemented rate structure and rates to
confirm Council’s goals were being met. Findings from that analysis include an increase in water fund revenue
from fixed charges to achieve revenue and rate stability and predictability. Prior to completing the water rate
structure changes, 14 percent of water fund revenue came from fixed charges and 86 percent came from variable
charges. Under the water rate structure that was implemented in July 2018, 25 percent of water fund revenue is
from fixed charges and 75 percent from variable charges.
City Council Rate Structure
Goal Prioritization
1 Revenue Stability and
Predictability
2 Discourage Wasteful Use
3 Stability and Predictability
of the Rates
4
Fair Allocation of Total
Cost of Service Among
Customer Classes
5 Reflect all Present and
Future Costs
Packet Page 572
City of San Luis Obispo 2019 Water Fund
12
Based on the recommendations of the 2019 Rate Study Confirmation, the City’s proposed water rate structure
and water rates for 2019-21 are provided below.
PROPOSED WATER RATES FOR 2019-21
Residential:
Current Rates1 Proposed 2019-20 Rates Proposed 2020-21 Rates
Monthly Base Fee $20.61 $21.74 $22.94
Usage (per unit cost)2
Tier 1: 0 to 5 units $5.90 $6.22 $6.56
Tier 2: 6 to 12 units $6.87 $7.25 $7.65
Tier 3: 13+ units $12.59 $13.28 $14.01
Multi-Family, Non-Residential, Irrigation:
Current Rates1 Proposed 2019-20
Rates
Proposed 2020-21 Rates
Base Fee by Water Meter Size Monthly Base Fee
¾ inch or less $20.61 $21.74 $22.94
1-inch meter $34.40 $36.29 $38.29
1.5-inch meter $68.65 $72.43 $76.41
2-inch meter $109.85 $115.89 $122.26
3-inch meter $206.10 $217.44 $229.40
4-inch meter $343.55 $362.45 $382.38
6-inch meter $686.95 $724.73 $764.59
8-inch meter $1,099.15 $1,159.60 $1,223.38
Usage (per unit cost)2 Per Unit Cost
Multi-Family – all use $6.73 $7.10 $7.49
Non-Residential – all use $8.17 $8.62 $9.09
Landscape Irrigation – all use $10.02 $10.57 $11.15
Water System Access Charge3 $83.57 $88.17 $93.02
Table 10
NOTES:
1. Current rates effective July 1, 2018.
2. One Unit = 748 Gallons
3. This charge applies where the City provides fire protection only to businesses that utilize a private well for domestic
purposes.
Packet Page 573
WATER FUND ANALYSIS
2018-19 Mid Year 2019-20 2020-21 2021-22 2022-23
Budget Budget Budget Budget Budget
REVENUES BY TYPE
Water Services Charges 13,695,075$ 14,448,304.13$ 15,242,961$ 16,081,324$ 16,965,797$
Drought Surcharge Volumetric -$ -$ -$ -$ -$
Base Fee Revenue 4,826,204$ 5,091,645$ 5,371,686$ 5,667,128$ 5,978,820$
Drought Surcharge - Base Fee -$ -$ -$ -$ -$
Cal Poly Sales 913,894$ 964,158$ 1,017,187$ 1,073,132$ 1,132,154$
Recycled Water 600,000$ 633,000$ 667,815$ 704,545$ 743,295$
Development Impact Fees 800,000$ 800,000$ 800,000$ 800,000$ 800,000$
AB 939 Reimbursement 147,900$ -$ -$ -$ -$
Investment & Property Revenue 50,000$ 50,000$ 50,000$ 50,000$ 50,000$
Proceeds from Debt 5,500,000$ 8,800,000$ 13,800,000$
Miscellaneous Revenue *298,000$ 298,500$ 299,010$ 299,530$ 300,061$
Water Sales - FHRP (start FY19)100,000$ 100,000$ 100,000$
TOTAL 21,431,073$ 27,885,607$ 32,348,658$ 24,675,659$ 39,770,127$
EXPENDITURE BY CATEGORY
Salaries & Benefits 4,120,798$ 4,137,824$ 4,274,596$ 4,491,034$ 4,622,380$
Operating Expenditures 11,851,066$ 13,508,070$ 11,522,977$ 11,623,119$ 11,729,804$
Capital Outlay 1,093,652$ 10,251,287$ 11,777,848$ 3,763,419$ 8,703,282$
Debt Service 1,995,859$ 2,543,134$ 2,552,134$ 3,120,310$ 3,528,718$
Transfers Out 2,432,258$ 2,670,367$ 2,721,448$ 2,788,784$ 2,858,148$
TOTAL 21,493,634$ 33,110,682$ 32,849,003$ 25,786,667$ 31,442,332$
EXPENDITURE BY FUNCTION
General Government 2,432,258$ 2,670,367$ 2,721,448$ 2,788,784$ 2,858,148$
Water Source of Supply 10,689,139$ 12,530,947$ 10,339,506$ 10,414,853$ 10,494,721$
Water Treatment 4,615,955$ 13,500,895$ 14,194,319$ 5,738,236$ 12,683,587$
Water Distribution 2,349,131$ 3,163,914$ 4,341,265$ 5,426,991$ 3,918,552$
Utilities Services 486,936$ 374,564$ 387,828$ 423,406$ 435,537$
Water Administration 920,215$ 869,994$ 864,638$ 994,396$ 1,051,787$
TOTAL 21,493,634$ 33,110,682$ 32,849,003$ 25,786,667$ 31,442,332$
CHANGES IN FINANCIAL POSITION
Working Capital - Beginning 25,457,367$ 25,394,806$ 20,169,731$ 19,669,386$ 18,558,378$
Revenues over (under) Expenditure (62,561)$ (5,225,075)$ (500,345)$ (1,111,008)$ 8,327,795$
Working Capital - Year End 25,394,806$ 20,169,731$ 19,669,386$ 18,558,378$ 26,886,173$
CAFR (CA-CL)
variance to CAFR
Operating Reserve 4,079,996$ 4,571,879$ 4,214,231$ 4,404,650$ 4,547,810$
Rate Stabilization 1,943,517$ 2,050,411$ 2,163,183$ 2,282,158$ 2,407,677$
CALPERS Down Payment 252,465$ 180,332$ 180,332$ 120,222$
UFL Trust Fund 120,222$ 120,222$ 120,222$ 120,222$
Unreserved Working Capital - Year End 19,371,292$ 13,174,754$ 12,991,418$ 11,571,016$ 19,690,242$ Packet Page 574
FUND ANALYSIS ASSUMPTIONSCategory2018‐19 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24Cost InflatorsMCI 2.9% 2.6% 3% 3% 3% 3%CCI3.2% 3.0%CPI1.9% 1.9%PPI4.0% 2.9%PG&E5.0% 5.0%Salary Increases0.0% 2.0% ‐1.0% 2.0% 2.0% 2.0%Rate IncreasesBase Fee $ 20.61 21.74 22.94 24.20 25.53 26.04Base Fee % 67.2% 5.5% 5.5% 5.5% 5.5% 2.0%Volumetric * 5.5% 5.5% 5.5% 5.5% 2.0%* the volumetric rate structure changed in 2018‐19 resulting in different percent increases for different customersPacket Page 575
CAPITAL IMPROVEMENT PROJECTS
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Revised Budget Budget Budget Budget Budget Budget
SOURCE OF SUPPLY
Groundwater
NOI Engineering Report 100,000$
SGMA GSP 150,000$ 150,000$ 150,000$ 150,000$ 150,000$ 150,000$
Groundwater Program - Well 101 Project
ER 75,000$
Study -$
Design 3,079$
Construction 991,086$
Construction Mgmt 150,000$
Water Reuse Automation Improvements 33,385$ 50,000$
TOTAL 1,402,550$ 300,000$ 150,000$ 150,000$ 150,000$ 150,000$
WATER TREATMENT
PROJECTS
Major Facility Maintenance 308,212.00$
Replace Compressor
Ozone System Maintenance 113,000$ 119,000$ 125,000$ 40,000$ 40,000$
Chemical System Maintenance 30,000$ 31,000$ 33,000$ 33,000$ 33,000$
Air Compressor and Dryer Maintenance 36,000$ 36,000$ 36,000$ 36,000$ 36,000$
EIM Actuator Replacement-Filter Effluent Valves 54,000$
Sodium Hydroxide Storage Tank Replacement 94,000$
Water Meter Replacement
Res 1 and 2 covers -$ 250,000$
Ozone System
Enc-Xylem
Chemical System
Air Compressor & Dryer Maintenance
Air Compressor Replacement
Design
Construction
Stenner Canyon Waterline Replacement
Study 1,719$
Design 35,000$
Construction 100,000$
Package Thickener and Edna Tank 150,000$ 50,000$
Wash Water Tank 2 Constr. @ WTP
Wash water tank #1
Construction 250,000$
Construction Management 25,000$
Reservoir 2 Replacement
Study 24$
Design 317,400$ 800,000$
Construction 6,000,000$ 7,000,000$
Construction Management 500,000$ 300,000$
Energy Efficiency Project (SST)
Study 147,500$
Design 566,000$
IGA 132,500$
Hydro & Ozone Construction 5,000,000$ 8,000,000$
Hydro & Ozone Construction Mgmt 500,000$ 800,000$
TTHM Removal
Study
Design 200,000$
Construction 1,500,000$
Construction Management 150,000$
IT
LAN Tablet System 34,100$
FLEET - WTP
Compact Pickup
Half-ton Pickup
Service Body Truck
General Forecast
TOTAL 1,842,455$ 8,677,000$ 9,261,000$ 194,000$ 6,659,000$ 7,409,000$
Packet Page 576
CAPITAL IMPROVEMENT PROJECTS
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Revised Budget Budget Budget Budget Budget Budget
WATER DISTRIBUTION
PROJECTS
Waterline Replacement 1,000,000$ 1,000,000$
Casa, Stenner, Chorro, Murray, Pacific
Construction 3,637,878$
Craig, Christina, Jaycee
Design 180,000$
Construction 1,800,000$
Construction Mgmt 180,000$
Patricia, Highland, La Entrada
Design 127,000$
Construction 1,270,000$
Construction Mgmt 127,000$
Serrano Zone Consolidation
Study & Design 100,000$
Bee Bee, Cuesta, Loomis
Design 100,000$
Construction 1,500,000$
Construction Mgmt 150,000$
Point Repairs
Design 40,000$
Construction 500,000$
Construction Mgmt 50,000$
Concrete ST/Access 18 1,900$
Fredricks Trench Maintenance (CN)300,000$
Mid-Higuera (CN)25,000$
Buchon-Santa Rosa (CN)150,000$
Trench Repairs 339,345$ 200,000$ 200,000$ 200,000$ 200,000$ 200,000$
Raise Valve Covers 37,665$ 50,000$ 30,000$ 30,000$ 30,000$ 30,000$
Water Meters and Boxes 180,000$ 180,000$ 180,000$ 180,000$ 180,000$ 180,000$
Water Meters and Boxes (from sewer)(90,000)$ (90,000)$ (90,000)$ (90,000)$ (90,000)$ (90,000)$
Fire Hydrants 47,802$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$
Water Model Maintenance 20,000$ 50,000$
Tank Maintenance
Study 8,573$
Design 40,005$
Construction
Construction Mgmt
Terrace Hill Tank Maintenance
Design 6,187$
Construction 882,732$
UV Bulb Replacement (Annual Replacement)10,000$
IT
Telemetry - Industrial/Tanglewood PRV Logic 50,000$
Telemetry System Upgrade (SCADA)
Design 2,704$
Construction 386,078$
Cityworks Upgrade (CA-UTIL ASSET MGMT SYS)-$
Madonna & LOVR Rehab -$
FLEET - WD
Portable Generators
Pickup 78,192$ 35,000$
Caterpillar backhoe loader
Portable vacuum pump
Service body trucks
Medium duty truck with bed & crane 180,000$
Extended cab pickup truck
Trailer 7,500$
Skid loader
TOTAL 5,716,011$ 1,250,000$ 2,365,000$ 3,390,000$ 1,829,500$ 1,867,000$
Packet Page 577
CAPITAL IMPROVEMENT PROJECTS
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Revised Budget Budget Budget Budget Budget Budget
ADMINISTRATION
Projects
879 Roofing Project 5,000$ 20,000$
879 Roofing Project (from sewer)(2,500)$ (10,000)$
HVAC 23,100$
Fleet
Sedan 35,000$
Control Systems Trucks
General assumption for future planning
TOTAL 23,100$ -$ -$ -$ 37,500$ 10,000$
MS Office Replacement 9,620$
Network Firewalls 15,259$
Network Switch Infrastructure Repl. 3,000$
Radio Handhelds Repl. 24,282$
S.Hill Radio Site Upgrade 16,363$
Server Operating System 1,848$
Tait Radio System 24,282$
UB System Upgrade
UPS Battery Replacement 1,885$ 1,885$
Virtual Private Network Replacment 9,028$
VM Infrastructure 8,945$
VoIP 20,360$
Wireless System Citywide 7,174$
Total 52,150$ 24,287$ 1,848$ 29,419$ 27,282$ 8,945$
TOTAL 52,150$ 24,287$ 1,848$ 29,419$ 27,282$ 8,945$
Available Balance
GRAND TOTAL - WATER FUND 9,036,266$ 10,251,287$ 11,777,848$ 3,763,419$ 8,703,282$ 9,444,945$
Packet Page 578
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a
resident of the county aforesaid; I am over the
age of eighteen years, and not a party interested
in the above entitled matter. I am the principal
clerk of the printer of the New Times, a
newspaper of general circulation, printed and
published weekly in the City of San Luis
Obispo, County of San Luis Obispo, and which
has been adjudged a newspaper of general
circulation by the Superior Court of the County
of San Luis Obispo, State of California, under
the date of February 5, 1993, Case number
CV72789: that notice of which the annexed
is a printed copy (set in type not smaller than
nonpareil), has been published in each regular
and entire issue of said newspaper and not in
any supplement thereof on the following dates,
to -wit:
in the year 2019.
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, California, this
day�vl' , 2019.
Patricia Horton, New TImes Legal
Admin & Pcr II•NNG Admin N"fAIG OffimUUSINIS SIPuhk NOIi—Proof of Pub
Proof of Publication of
SAN LUIS OBISPO CITY
COUNCIL
NOTICE OF PUBLIC MEETING
The 5at1 Luis Obispo, .City Council invites all
intarvsted persons to attend a Public Hearing on
iEtsaday, Jebne 4. 2018, et M00 p,m, In the Ctty
Hall Caunolf Chambe . 890 Palm Stneei; gen Luis
Obfspo, CaR rnlll, relative to the following:
X41@31
Considw adopting a Rssoiu[ion entitied'A Resoluiior1
of the City Council of [he City of San Luis Obispo,
Cabifomfa, approving the 201$20 Financial f fan and
2038 20 Budget. -
For more information, you are invited to contact
arigilta Elke of the City's Finance Department at
(805) 781-7125 or by email at belkeasiocity,org.
The City Council may also discus,3 other hearings or
Gusiness items before or alter the items is led above.
If you challenge the proposed projects in court, you
maybe limited to raising only those issirss you or
somaone else raised at the public hearing described
in this notice. or in wrtten correspondence delivered
to the City Counci) at, or prior to, the Public hearings.
Reports for this meeting will be available for review
in the City Clerk's Office and online at www.slocity.
org on Thursday, May 23, 2019. Please call the City
Clerk's Office at (805) 781-7100 for more information.
The City Council meeting will be televised live c,ri
Charter Cable Channel 20 and live streaming on
www.slocity.org.
Teresa Purrington, City Clerk
City of San Luis Obispo
May 23, 2019
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 1
June 4, 2019 City Council
Preliminary 2019‐21
Financial Plan
1
Recommendations
1.Adopt a Resolution approving the 2019-21
Financial Plan
2.Defer budget adoption of the Water and
Sewer Funds until June 18, 2019
2Packet Page 1
1
2
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 2
2019-21 City Council
Financial Plan Vision
The City of San Luis Obispo is a dynamic
community embracing its future while
respecting its past with core values of civility,
sustainability, diversity, inclusivity, regionalism,
partnership, and resiliency.
3
City’s Mission
People Serving People
A team that puts high value on each citizen it
serves.
Providers of programs that meet the basic
service needs of each citizen.
Enhancers of the quality of life for the
community as a whole.
4
3
4
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 3
5
2019-2021 Major City Goals
6
5
6
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 4
Fiscal Sustainability & Responsibility
7
Sustainable Transportation
8
7
8
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 5
Climate Action
9
Housing
10
9
10
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 6
Downtown Vitality
11
2019-2021 Major City Goals
12
11
12
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 7
Vulnerability & Innovation
Real Harmony
Clarity of Purpose
High Standards
Organizational Outcomes
High Performing Teams
Focus on
Collective
Results
Accountability
Commit to Ideas and
Actions
Ability to Have Critical
Conversations
Team & Individual Trust
13
City Manager Message
Build upon the City’s Fiscal Health Response
Plan
High Quality Public Services
Continue progress on Major City Goals
Investment in New Capital Projects, Programs &
Services
Pension Paydown
$32 million-10 years
$13.8 Pension Trust
Goals that maintain, enhance and advance the
Council’s vision and the City’s Mission.
CAUTIONARY&encouraging
14
13
14
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 8
The 2019-21 Financial Plan
Communication, policy, and appropriation tool.
Per Strategic Budget Direction, three new policies:
1.Insurance Fund
2.Safety Equipment Replacement Fund
3.Development Review
Recent policies:
-Revenue Stabilization Fund
-Capital Reserve Fund
Strategic Priorities
2019-21 Preliminary Financial
Plan is aligned with:
• Implementation of the
Fiscal Health Response
Plan
• Council Adopted Major City
Goals
New
Revenues
30-40%
Employee
Concessions
20-30%
Operating
Reductions /
New Ways of
Doing
Business
30-40%
16Packet Page 31
15
16
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 9
2019-21 Major City Goals
Housing
Fiscal
Sustainability
&
Responsibility
Sustainable
Transportation
Climate Action
Downtown
Vitality
17Packet Page A-9
The Proposed Financial Plan achieves…
Balanced budget
Core services and restores funding for critical
safety equipment replacement.
Substantial down payments to CalPERS and
contribution to 115 Pension Trust Fund.
Capital Reserve.
Priority uses of Local Revenue Measure funds.
Significant Investment in Infrastructure.
18
17
18
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 10
2019-21 Total Funding Sources
By Type $402 million
Tax &
Franchise
Revenue
Service
Charges
Debt
Proceeds
36%31%
33%
19Packet Page 108
2019-21 Total Expenditures
By Fund - $408 million
42%
18%
34%
3%2%1%
20Packet Page 109
General Fund
Water Fund
Sewer Fund
Parking Fund
Transit Fund
Tourism
Assessment
Downtown
Assessment
34%
2%10%
16%
37%
1%
19
20
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 11
21
7%, $1,129,396
12%, $1,876,398
3%, $547,835
25%, $3,941,581
24%, $3,697,598
4% $626,909
11% $1,688,816
12% $1,941,788
2%,
$277,863
2019‐21 LOCAL REVENUE MEASURE USES
(Operating and Capital $15.7M)
1. Open Space Preservation
2. Bicycles and Pedestrian
Improvements
3. Traffic Congestion Relief
(Safety Improvements)
4. Public Safety
5. Neighborhood Street
Paving
6. Code Enforcement
7. Flood Protection
8. Parks and
Recreation/Senior Programs
and Facilities
9. Other Vital Services and
Capital Projects
21Packet Page 90
2019-21 Program Enhancements
Fiscal
Sustainability
57%
Climate
Action
8%
Downtown
Vitality
12%
Housing
23%
2019-20 2020-21
One-Time $786,771 $527,797
Ongoing $915,642 $1,091,793
Total Request $1,702,413 $1,619,590
22Packet Page 122
21
22
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 12
Changes from Strategic Budget
Direction
23
Task Major City Goal Amount
Downtown Zoning
Update
Housing $100,000
Childcare Study Fiscal Sustainability &
Responsibility
$20,000
Diversity Initiative
(HRC)
Fiscal Sustainability &
Responsibility
$20,000
Climate Coalition
Support
Climate Action $10,000
Sustainability
Capacity Building
Climate Action $10,000
Funding Source – SB-2 Housing and Jobs Act
Packet Page 2
2019-21Operating Expenditures
General Fund Departments
DEPARTMENT 2019-20 2020-21
1 Administration $7,146,436 $7,369,051
2 City Attorney $677,237 $705,122
3 Community Development $4,798,760 $4,851,870
4 Finance $2,943,901 $3,169,190
5 Fire $13,019,071 $13,439,611
6 Human Resources $1,363,945 $1,404,100
7 Parks and Recreation $4,303,161 $4,448,221
8 Police $17,685,865 $18,669,167
9 Public Works $13,138,969 $13,309,803
TOTAL $65,077,345 $67,366,135
24Packet Page 117
23
24
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 13
Employee Summary – General Fund
Staffing Additions – 5 positions
Current Staffing
99%
Additions
1%
DEPARTMENT 2019-20
1 Administration 28.25
2 City Attorney 3
3 Community Development
Housing Coordinator
33.5
1
4 Finance
Infrastructure Financing Analyst
13
1
5 Fire 57
6 Human Resources 6
7 Parks and Recreation
Supplemental Employees
17
46.5
8 Police
Cannabis Detective
DT Sergeant & Field Technician
91.5
1
2
9 Public Works 84.3
Total 334.95
25Packet Page 119 - 121
Capital Improvement Plan
Packet Page 299 26
26
25
26
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 14
19-21 Capital Improvement Plan
1.Development of the Capital
Improvement Plan
2.New Features
3.Project Prioritization
4.Planned Expenditures
5.Staff’s Recommendation
27
Development of the Capital Plan
A Systematic Approach To
Ensure:
1.Cost Effectiveness
2.Conformance With
Policies
3.Consistency With Long-
term Plans
5‐Year
CIP
Finance
Plan
Schedule
28
27
28
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 15
Development of the Capital Plan
1.$25,000 or more Project Cost and useful life 3+ years
2.Five-Year Planning Horizon
3.CIP Projects Are Guided By:
Citizen Input Advisory
Body Input
Local
Revenue
Measure
Priorities
Council
Priorities &
Goals
29
New Features
Priorities Funding
Infrastructure
Investment Fund
SB 1090
SB 1; 1st full
year
Revised Fleet
Policies
Development
Agreements
Annual Asset
Maintenance
29
30
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 16
Capital Plan Prioritization
31
19-21 General Fund
$17 M CIP Allocations
10.5 M3M
3.5 M
Annual Asset Maintenance Asset Replacements New Assets
31
32
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 17
Annual Asset Maintenance
Projects
Mobility
Streets
Bridges
Bike
Facilities
Public
Facilities
Parks
Facilities
Open
Space
Parks Play
Equipment
Public
Safety
Storm
Drains
Silt
Removal
Urban
Forest
19-21 Planned Expenditures by Fund
Bonds, Infrastructure Loan
14%
Developer Contribution
3%
Fleet Replacement
Fund
0%
General Capital
Outlay
1%
Infrastructure
Investment Fund
1%
Local Revenue
Measure
6%
Parking Fund
10%
Parkland
Development
3%
Sewer Fund
38%
State or Federal Grant
6%
Transportation Impact
Fee
5%
Water Fund
12%
34
33
34
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 18
2019-21 General Fund CIP Investments
CIP by Category (in thousand)Projected
FY 20
Projected
FY 21
General CIP $ 934 $ 521
SB1 $ 818 $ 1,325
Local Revenue Measure CIP $ 3,642 $ 3,698
Fleet $ 593 $ 602
IT infrastructure $ 885 $ 904
Major Facility Replacements $ 516 $ 524
Infrastructure Investment
Fund
$ 1,900 $ 119
Total CIP Investment $ 9,288 $ 7,693
6%
11%
7%
43%
22%
11%
Facilities
Information Technology
Fleet
Local Revenue Measure
Infrastructure Investment
General CIP
35Packet Page 84
General Fund – Debt & Debt Retirement
Debt Issue – Asset (in thousands)Outstanding
Principal*
Annual Payment Final
Year
FY 2020 FY 2021
2010 Lease Fire Truck (Apparatus) $128,738 $128,738 $ ‐2020
2012 Lease Revenue Refunding Bonds $3,230,000 $384,200 $384,000 2030
2014 Energy Resources Conservation State
Loan
$323,347 $94,242 $94,242 2024
2014 Lease Copiers $5,324 $5,347 $‐2020
2014 Lease Revenue LOVR Overpass $6,805,000 $588,006 $592,131 2045
2015 Lease Mobil Data Equipment Lease $44,291 $44,462 $‐2020
2016 Lease Fire Pumper & Street Sweeper $236,054 $240,067 $240,067 2021
2017 Lease Dump Truck & Sweeper $343,021 $141,227 $141,227 2023
2018 Lease Fire Truck $449,528 $146,131 $146,131 2024
2018 Refunding Bond $9,743,125 $969,097 $979,410 2039
Total General Fund Debt $21,308,428 $2,741,518 $2,577,208
*per 2019‐20
36Packet Page 101
35
36
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 19
Total General Fund Budget
$‐
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2019‐20 2020‐21
Operating Expenses Capital Expenses Debt Expense Total General Fund
37Packet Page 86
General Fund Reserve Levels
Reserves Projected
FY 20
Projected
FY 21
General Reserve $ 10,184 $ 10,307
Revenue Stabilization $ 1,000 $ 1,000
Capital Reserve $ 500 $ 750
Fund Balance Projected
FY 20
Projected
FY 21
Undesignated Fund Balance $ 2,749 $2,854
Annualized Undesignated Fund
Balance
$106 $122
38Packet Page 86
37
38
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 20
Recommendations
1.Adopt a Resolution approving the 2019-21
Financial Plan
2.Defer budget adoption of the Water and
Sewer Funds until June 18, 2019
39
39
40
6/4/2019
06‐04‐2019 Item 15 ‐ Staff Presentation ‐
Financial Plan and Budget 21
Child Care Services
Child
Care
YMCA
First 5
Private
Providers
Corporate
Programs
SLOCUSD
Child Care
Planning
Council
County
City
41
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 1
2019-21 Budget Review2019-21 Budget Review
City Council Meeting
Water Fund Review
2019-21 Financial Plan
June 4, 2019
Overview – Water and Sewer Utilities
1.Water Fund Review
•Revenues and Expenditures
2.Sewer Fund Review
•Revenues and Expenditures
2
1
2
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 2
Programs Funded by City’s Water Utility
•Source of Supply
•Treatment
•Distribution
•Water Resources
•Administration and Engineering
3
City Water at a Glance
Programs 5
Employees 35.4
Water Reservoirs 3
Distribution Pipes 145 miles
Storage Tanks 10
Pressure Zones 15
Water Treated 1.7 billion gallons
Water Fund 2019-20 Revenue
4
Revenues 2019-20
Service Charges 16,145,462
Base Fee 5,091,645
Development Impact Fees 800,000
Investment and Property Revenue 50,000
Debt Proceeds 5,500,000
Other Revenue 298,500
Total Revenue $ 27,885,607
Packet Page 228
3
4
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 3
Water Fund Revenue
5
Water Sales
a.Service Charges
b.Base Fee
Water Service
Charges
72%
Dev Impact
Fees
4%
Misc Revenue
1%
Base Fee 23%
Water Fund 2019-20 Operating Expenditures by
Program
6
Total 2019-20 Fund Expenditure: $20,181,785
Packet Page 231
5
6
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 4
Water Fund 2019-20 Expenditures by Category
7
7%
43%
33%
10%
7%
Salaries & Benefits
Operating
Capital
Debt Service
General Government
2019-21
Significant Operating Budget Change
8
Significant Operating Budget Changes One‐Time Ongoing
2019‐20 2020‐21 2019‐20 2020‐21
1 Nacimiento Operating Expenses $255,500
2 Salinas Reservoir – Pipeline Repair $1,750,000 $142,000 $142,000
3 Electric Service – Water Distribution $9,000 $9,000
4 Leak Detection Equipment‐Water Distribution $25,000
5 Water Treatment – TTHM $102,620 $102,620
6 Water Treatment‐Chemicals $40,895 $41,391
7 Water Treatment Plant Equipment $10,000 $10,000
8 Electric Service – Water Treatment Plant $13,000 $13,000
9 Water Treatment Plant Overtime $42,000 $42,000
10 Water Admin & Engineering‐Various Studies $37,550 $37,550
11 CIP Engineering Program $71,101 $73,537
Water Fund Total $2,082,500 $52,000 $416,166 $419,098
Packet Page 232
7
8
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 5
2019-21 Water Fund
Capital Improvement Plan Summary
9
Water Treatment Plant FY 2019-20 FY2020-21
•Energy Efficiency Project $5,500,000 $8,800,000
•Major Facility Maintenance $ 327,000 $ 186,000
•Tank Maintenance $ 400,000 $ 275,000
•Reservoir 2 Replacement $ 800,000 $ 0
•Water Quality – TTHM Removal $1,650,000 $ 0
Water Distribution System
•Distribution System Improvements $1,070,000 $2,365,000
Administration/Engineering
•Facilities Maintenance Project $ 0 $ 0
•Shared IT Projects $ 24,287 $ 0
TOTAL CAPITAL INVESTMENTS $ 9,771,287 $11,626,000
Packet Page 233
Water Utility Capital Investments
10
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Treatment/Distribution CIP
Treatment Distribution
9
10
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 6
Recommended Water Rate Increases
11
2019-20 2020-21
Water Base Fee 5.5% 5.5%
Volume Charges 5.5% 5.5%
Packet Page 235
2019-20 2020-21 2021-22 2022-23 2023-24
To/From Reserves $(1,168,553.00) $118,145.00 $115,061.00 $134,686.00 $973,771.00
Projected Rate Increase 5.5% 5.5% 5.5% 3.0% 3.0%
$(1,500,000.00)
$(1,000,000.00)
$(500,000.00)
$-
$500,000.00
$1,000,000.00
$1,500,000.00
To/From Reserves Projected Rate Increase
Open House
12
Public Hearing
June 18th
11
12
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 7
Solid Waste Recycling Program
13
Actual Budget 2019‐21 Financial Plan
2017‐18 2018‐19 2019‐20 Change 2020‐21 Change
Staffing $127,031 $139,179 9%
Contract Services $30,500 $24,000 (27%)
Other Operating Costs $16,010 $15,710 (2%)
Total Program $173,541 $178,889 3%
•General Fund Budget
•Administered by Utilities Department
•Coordinates programs & services related to solid waste, recycling, organic
waste, zero waste, and other waste diversion programs
Packet Page 261
Questions
14
13
14
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 8
Recommendations
15
1. Review and approve the 2019 Water Fund Review;
and
2. Conceptually approve the 2019-21 Water Fund
financials and budget with final action on June 18,
2019, with the adoption of the 2019-21 Water Fund
Rates.
2019-21 Budget Review2019-21 Budget Review
City Council Meeting
Sewer Fund Review
2019-21 Financial Plan
June 4, 2019
15
16
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 9
Programs Funded by City’s Sewer Utility
17
•Wastewater Collection
•Water Resource Recovery Facility
•Water Quality Laboratory
•Environmental Programs
•Utilities Revenue
•Administration and Engineering
City Wastewater at a Glance
Programs 6
Employees 31.7
Sewer Lines 138 miles
Pump Stations 8
Sewage Treated Annually
1.14 billion gallons
Recycled Water produced
annually
74 million gallons
Water Returned to Creek*
873.5 million gallons
*As a condition of its recycled water program,
the City is required to release water into the
creek to maintain year‐round habitat for
endangered species such as steelhead trout and
red‐legged frog.
Sewer Fund 2019-20 Revenue
18
Revenue Sources 2019-20
Sewer Service Charges $ 12,474,545
Sewer Base Fee $ 4,301,687
Development Impact Fees $ 300,000
Other Revenue $ 306,642
Investment and Property Revenues $ 50,000
Proceeds from Debt Financing $ 64,310,573
Total Revenue $ 81,743,447
Packet Page 245
17
18
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 10
Sewer Fund Revenue
19
Sewer
Service
Charges
72%
Sewer
Base Fee,
25%
Dev
Impact
Fees, 1%
Misc.
Revenue,
2%
Sewer Sales
a.Service Charges
b.Base Fee
Sewer Fund Operating Expenditures by Program
20
Total 2019-20 Fund Operating Expenditure: $9,765,562
$‐
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
OPERATING EXPENDITURES
Expenditures 2018‐19 Expenditures 2019‐20 Expenditures 2020‐21
Packet Page 248
19
20
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 11
Sewer Fund 2019-20 Expenditures by Category
21
9%
83%
5%
3%
Operating Costs
CIP
Debt Service
General Government
2019-21
Significant Operating Budget Change
22
Significant Operating Budget Changes One‐Time Ongoing
2019‐20 2020‐21 2019‐20 2020‐21
1 Water Resource Recovery‐Service Warranty $35,000 $19,225 $19,225
2 SCADA System‐Licensing Costs $8,000 $4,083 $4,083
3 Water Resource Recovery‐ Training $8,750
4 Water Resource Recovery‐Electric Service $10,000 $90,000
5 Wastewater Admin & Engineering‐Studies $22,500 $22,500
6 CASA Membership Fee $12,470 $12,470
7 Water Resource Recovery‐Overtime $13,000
8 APCD Regulatory Permit Fee Increase $10,600
9 Water Resource Recovery‐Chemicals $113,175
10 CIP Staffing Resources $99,926 $103,350
Sewer Fund Total $51,750 $126,175 $294,379 $262,258
Packet Page 249
21
22
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 12
23
2019-21 Sewer Fund
Capital Improvement Plan Summary
Wastewater Collection FY 2019-20 FY 2020-21
•Wastewater Collection System Improvements $ 625,000 $ 1,666,000
•Lift Station Replacement $ 0 $ 700,000
•Fleet $ 0 $ 0
Water Resource Recovery Facility
•Facility Upgrade Project $64,310,573 $43,099,819
•Annual Maintenance $ 200,000 $ 300,000
•Telemetry Upgrade $ 280,000 $ 0
Administration/Engineering
•Facilities Maintenance Project $ 0 $ 0
•Shared IT Projects $ 23,482 $ 4,260
TOTAL CAPITAL INVESTMENTS $65,439,055 $45,770,079
Sewer Utility Capital Investments
24
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
WW Collection/Water Resource Recovery CIP
Wastewater Collection Water Resource Recovery
23
24
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 13
Recommended Sewer Rate Increases
25
2019-20 2020-21
Sewer Base Fee 5.5% 5.0%
Volume Charges 5.5% 5.0%
•Two-year proposed rate changes
•Public hearing to consider proposed rate changes June 18, 2019
Packet Page 252
Questions
26
25
26
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 14
Recommendations
27
1. Review and approve the 2019 Sewer Fund Review; and
2. Conceptually approve the 2019-21 Sewer Fund
financials and budget with final action on June 18, 2019,
with the adoption of the 2019-21 Sewer Fund Rates.
Recommended Water Rates
28
Current Rates Proposed 2019‐20 Rates Proposed 2020‐21 Rates
Monthly Base Fee $20.61 $21.74 $22.94
Usage (per unit cost)
Tier 1: 0 to 5 units $5.90 $6.22 $6.56
Tier 2: 6 to 12 units $6.87 $7.25 $7.65
Tier 3: 13+ units $12.59 $13.28 $14.01
Current Rates Proposed 2019‐20 Rates Proposed 2020‐21 Rates
Base Fee by Water Meter Size Monthly Base Fee
¾ inch or less $20.61 $21.74 $22.94
1‐inch meter $34.40 $36.29 $38.29
1.5‐inch meter $68.65 $72.43 $76.41
2‐inch meter $109.85 $115.89 $122.26
3‐inch meter $206.10 $217.44 $229.40
4‐inch meter $343.55 $362.45 $382.38
6‐inch meter $686.95 $724.73 $764.59
8‐inch meter $1,099.15 $1,159.60 $1,223.38
Usage (per unit cost)
2 Per Unit Cost
Multi‐Family– all use $6.73 $7.10 $7.49
Non‐Residential– all use $8.17 $8.62 $9.09
LandscapeIrrigation– all use $10.02 $10.57 $11.15
Water System AccessCharge
3 $83.57 $88.17 $93.02
27
28
6/4/2019
06‐04‐2019 Item 14 ‐ Water and Sewer Fund
Review ‐ Staff Presentation 15
Sewer Rates
29
USAGE Current Rates1 Proposed
2019‐20 Rates
Proposed
2020‐21 Rates
Single‐Family and Multi‐Family Residential
Per Unit Cost (Up to Sewer Cap)
2 $7.85 $8.28 $8.69
Non‐Residential
Per Unit Cost (for All Water Consumption)2 $7.85 $8.28 $8.69
MONTHLY BASE FEE Current Rates1 Proposed
2019‐20 Rates
Proposed
2020‐21 Rates
Single‐Family Residential $18.69 $19.72 $20.71
Multi‐Family and Non‐Residential
By Water Meter Size:
¾ inch or less $18.69 $19.72 $20.71
1‐inch meter $31.21 $32.93 $34.58
1.5‐inch meter $62.24 $65.66 $68.94
2‐inch meter $99.62 $105.10 $110.36
3‐inch meter $186.90 $197.18 $207.04
4‐inch meter $311.56 $328.70 $345.14
6‐inch meter $622.93 $657.19 $690.05
8‐inch meter $996.72 $1,051.54 $1,104.12
10‐inch meter $1,432.94 $1,511.75 $1,587.34
29
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 1
Parking Fund Review
Fiscal Year 2019-20
City Council Presentation June 4th, 2019
1. Review and accept the 2019 Parking Fund Review;
and
2. Approve the Parking Enterprise Fund budget for
2019-21; and
3. Adopt a Resolution (Attachment D) deferring
previously approved 10 Hour Meter Permit increases
until July 1, 2020, and approve the amount at $70 a
permit; and
4. Adopt a Resolution (Attachment E) increasing the
fine and forfeiture amounts for Residential Permit
District parking violations to $40 a violation.
Recommendations
1
2
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 2
1. Marsh Street Structure EV Charging Stations
Installation
2. Installation of new Parking Access and Control
Equipment in all structures
3. New License Plate Recognition System installed on
two vehicles
4. Implemented 1 new Residential Permit District
(Anholm) and expanded one (Ferrini)
5. Completed 3 month pilot program of new digital
credit card capable parking meters
Parking Highlights
Parking Highlights
3
4
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 3
The Proposed Parking Financial Plan
Achieves…
1. Balanced budget
2. Core services and begins funding for critical
asset replacement and rehabilitation.
3. Participates in down payments to CalPERS
and contribution to 115 Pension Trust Fund.
4. Funds the Construction of Palm-Nipomo
Structure beginning in December 2020.
5. Addresses recent cleanliness and security
issues in and around structures.
5
Where the Money Comes From
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2017-18 Actual 2018-19 Budgeted 2019-20 Projected 2020-21 Projected
Parking Revenues
Investment and Property Revenues Fines & Forfeitures Parking Meters - Lots
Parking Meters - Street Parking Structures Long Term Parking
Lease Revenues Parking In-Lieu Fees Other Revenue
5
6
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 4
What the Money is Spent On
Salaries &
Benefits
24%
Operating
Expenditures
21%
Capital Projects
29%
Debt Service
16%
General
Government
10%
2019-20 Expenses
Program Enhancements (SOBCs)
7
8
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 5
Capital Projects
1.Asset Maintenance
2.Asset Replacement
3.New Assets
2019-21 Parking Fund CIP Investments
10
9
10
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 6
2019-21 Parking Fund CIP Investments
11
Palm – Nipomo Parking Structure
1.$28.6 Million
2.Final Design/Environment underway
3.Construction – December 2020
4.18 Months Construction
5.$20M Debt Finance FY 20-21
11
12
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 7
Parking Structure Reinvestment
Example: 842 Palm
Barrier cable anchors have
no end caps
Steel guardrail at structure perimeter
as vehicle barrier system
Minor concrete spall at a
concrete bumper wall Cracks in CMU blocks
Minor concrete spall with exposed
reinforcement at floor surface
Fund Analysis
13
14
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 8
Fund Analysis
Rates Changes
15
16
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 9
Fines & Forfeitures
17
18
6/4/2019
06‐04‐2019 Item 14 ‐ Parking Fund Reveiw ‐
Staff Presentation 10
1. Review and accept the 2019 Parking Fund Review;
and
2. Approve the Parking Enterprise Fund budget for
2019-21; and
3. Adopt a Resolution (Attachment D) deferring
previously approved 10 Hour Meter Permit increases
until July 1, 2020, and approve the amount at $70 a
permit; and
4. Adopt a Resolution (Attachment E) increasing the
fine and forfeiture amounts for Residential Permit
District parking violations to $40 a violation.
Recommendations
19
6/4/2019
06‐04‐2019 Item 14 ‐ Transit Fund Review ‐
Staff Presentation 1
Transit Enterprise
Fund Review
Fiscal Year 2019-20
City Council Presentation June 6th, 2019
1) Introduction of Laguna Tripper
2) Replaced 10 bus shelters and added two new ones
(PTMISEA)
3) Replaced CAD/AVL system which comes with solar
signage (Prop 1B)
4) Introduced bus service to the airport and about to
supplement further (cost neutral)
5) 5% Ridership increase over last year, top 10 percentile of
urban transit systems in CA (source NTD data)
6) Close out 2017-19 budget cycle with a balanced budget
7) Evaluating New Service to New Development Margarita &
Orcutt Areas.
Transit Highlights
1
2
6/4/2019
06‐04‐2019 Item 14 ‐ Transit Fund Review ‐
Staff Presentation 2
Transit Highlights
Where the Money Comes From
1. Federal 5307 (FTA); largely
based on population size
(46,000)
2. State TDA; based on fuel
and sales tax
3. Local Farebox; CalPoly
subsidy, cash and pass sales
36%
44%
20%
Federal 5307 State TDA Local Farebox
State
Local
Federal
3
4
6/4/2019
06‐04‐2019 Item 14 ‐ Transit Fund Review ‐
Staff Presentation 3
What the Money is Spent On
1. Purchase Transportation;
contract services (ie. First Transit)
2. Fuel & Maintenance; diesel,
brakes, lubricants, filters, etc.
3. Overhead/Admin; staffing,
other contractors, etc.
4. Cost Allocation; contribution
to other City Services
64%
13%
13%
10%
Purchased Transportation Fuel & Maintenance
Overhead & Admin Cost Allocation
Purchase
Trans.
Cost Allo.
Admin.
Fuel/Maint.
Balanced Operating Budget
5
6
6/4/2019
06‐04‐2019 Item 14 ‐ Transit Fund Review ‐
Staff Presentation 4
Capital Projects - Transit Nuance
1.Transit Capital Projects are typically completed with the
support of State or Federal grants
2.Projects must be adopted by Council in order to pursue those
grants
3.Transit uses unreserved fund balance as local match to
grants
4.Transit CIP's are recorded based on FTA's defined useful-life
for the asset
Capital Projects
1.Farebox
2.Bus Wash
3.Bus Replacement
4.Bus Expansion
7
8
6/4/2019
06‐04‐2019 Item 14 ‐ Transit Fund Review ‐
Staff Presentation 5
Moving Towards Electrification
Fleet Costs
Infrastructure Costs
$1m - $2m
Range
Staff Recommendation
1. Review and accept the 2019 Transit Enterprise Fund Review (Attachment A); and
2. Approve the FY 2019-20 Transit Enterprise Fund financials and budget; and
3. Authorize the City Manager, or the City Manager’s designee, to execute a one-year
agreement extension with Cal Poly for continuation of the Subsidy Agreement for Free
Fare ridership on SLO Transit.
9
10
6/4/2019
06‐04‐2019 Item 14 ‐ Transit Fund Review ‐
Staff Presentation 6
11