HomeMy WebLinkAboutItem 15 - AUTHORIZE USE OF FY2018-19 UNDESIGNATED FUND BALANCE FOR ONE-TIME BUDGET ALLOCATIONS & FORMALLY ADOPT FEDERAL EMERGENCY & FEDERAL GRANT PROCUREMENT PROCEDURESItem 15
Council- • . Report
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Department Name:
Cost Center:
For Agenda of:
Placement:
Estimated Time:
FROM: Derek Johnson, City Manager
Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
Matt Horn, City Engineer
Finance
2001
March 17, 2020
Business
30 min
SUBJECT: A RESOLUTION AUTHORIZING THE USE OF FY2018-19
UNDESGINATED FUND BALANCE FOR ONE-TIME BUDGET
ALLOCATIONS AND A RESOLUTION FORMALLY ADOPTING THE
FEDERAL EMERGENCY AND FEDERAL GRANT PROCUREMENT
PROCEDURES.
RECOMMENDATION
1. Approve Resolution (Attachment A) adopting changes to the FY2019-20 budget which
includes 2019-20 budget adjustments for all Funds, authorizes the one-time payment of $4.2
million toward unfunded Ca1PERS liabilities, $1.4 million to fund a pension trust fund, and
restricts $885,270 in fund balance for the FY2020-21 budget, and;
2. Approve one full-time equivalent (FTE) position in support of the reorganization of
Community Service departments; and
3. Review recommended changes to the Capital Improvement Plan.
4. Approve a resolution (Attachment C) formally adopting the federal emergency and federal
grant procurement procedures in place since February 1, 2019.
DISCUSSION
On March 17, 2020, the City Council will receive a presentation from its independent auditor
regarding the City of San Luis Obispo's (City) fiscal year (FY) 2018-19 results and reviewed the
Comprehensive Annual Financial Report (CAFR) for the same year. Part of this review are the
City's policy reserve levels and any balance above those levels. According to the CAFR, the City
ended the last fiscal year with the following fund balance:
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Item 15
I General Fund - Fund Balance June 30, 2019 1
Nonspendable
51,636
Assigned to:
Contingency fund (20% Minimumreserve) 13,418,400
General Government 9,908,932
Development services 531,000
Unassigned
Total fund balance
The chart illustrates that the City is able to fully fund its 20% operating reserve including the
Revenue Stabilization Reserve and the restricted funding for the Section 115 Pension Trust Fund.
After accounting for ongoing contractual obligations and the Development Review designation,
$6,185,574 remain in unassigned fund balance. However, the City Council has previously
directed that available funding will be prioritized to pay -down the City's pension liability and
$4.2 million are earmarked for this purpose. This leaves $1,985,574 for possible appropriation.
In accordance with City Charter', the City Council may amend or supplement the budget at any
time after its adoption by the majority vote of the Council members. Additionally, the City's
budget policies allow for excess fund balance above policy reserve levels to be used for one-
time, non -recurring expenditures. Accordingly, staff recommends the appropriation of one-time
savings above required reserve levels from FY 2018-19 to be allocated to one-time expenditures
that were unanticipated at the adoption of the 2019-21 Financial Plan but needed for optimum
work program deliverables. Detailed descriptions of the requests are provided in Attachment A
(Exhibits A-F).
Approval of Positions
As part of the 2019-21 Financial Plan Operating Program Enhancements, $225,000 was
approved as an ongoing resource to support the Organization of the Future. The reorganization
included the creation of an Assistant City Manager Position to manage the Community Services
departments (Public Works, Parks & Recreation, Utilities, Transit, and Parking). While the
funding was added to the budget for the Assistant City Manager, the FTE was not added.
Due to the vacancies in the positions of first the Parks & Recreation Director and subsequently the Public
Works Director, the position count was not needed. However, the City has concluded that a Public Works
Director is needed and is now trying to fill the position. In order to continue the implemented structure,
the approval of an additional FTE is necessary. There is no funding associated with this recommendation
as all needed budget allocations were approved with the 2019-21 Financial Plan.
' 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 the 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 the budget by
motion adopted by a majority vote of the Council.
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Item 15
2019-20 Capital Improvement Plan — Recommended changes in appropriation
On February 18, 2020, Council received its 2019-20 Mid -Year Budget Review report. The
purpose of that report was to update City Council and the community on City work programs,
workload and performance measures, and changes in financial positions. An update on the status
of the Capital Improvement Plan (CIP) was also provided. Significant progress on CIP has been
made for the City's Utilities Department as well as the 2019 Paving and multiple bridge
replacements including El Capitan Pedestrian Bridge and Meadow Park Pedestrian Bridges. A
list of completed Capital Projects is included in Attachment B.
The City's Capital budget is prepared over a multi -year period and focuses on maintenance of
existing facilities as well as new projects to advance Major City Goals and adopted Plans. Some
CIP projects come up quickly as they may have to address failing/failed infrastructure (e.g. El
Capitan Bridge) or when new information is obtained, and projects must be accelerated (e.g.
safety project due to failing equipment) or deferred to fund other priority projects. The adopted
CIP serves as a portfolio of projects for a budgetary cycle. Each individual project prior to
construction must go through further Council and/or City Manager (depending upon fiscal
impacts) review. This typically involves Council issuing requests to authorize a project for
bidding and awarding contracts for construction. During that process further budget and project
specification adjustments occur.
Unprecedented Escalation in Construction Costs
Currently, the construction industry is facing unprecedented uncertainty in costs, labor supply,
and conditions. Multiple City projects have come in well above engineers' estimates and have
had to be rebid and/or returned to Council for further funding allocations. The costs of materials
are escalating far more rapidly than forecasted cost adjustment indices. Construction labor
shortages are unprecedented, and some projects have received no bids. Global uncertainty in the
finance markets and the world in general due to stock volatility have created further instability in
this industry. The impacts of this instability are that some reprioritization of projects must occur
so that the City can have successful capital projects through the end of this two-year Financial
Plan and stay within our budget. This results in shortfalls in other project areas and given limited
funds deferral to the next cycle.
Cost of Construction Escalation and Adjusted Capital Budget
Staff is currently completing a comprehensive review of all general fund CIP projects within the
context of the uncertainties and volatility noted above. At this time, because the City has
experienced over -realized revenues, unprecedented construction costs, and project timing
constraints, there are projects that are being considered for reprioritization, deferral, and funding
augmentation. The results and recommendations of this analysis will be presented to the Revenue
Enhancement Oversight Committee (REOC) on March 18, 2020 and forwarded to Council for
consideration on April 7, 2020 as part of the consent calendar. The purpose for including this
discussion is to provide the Council with a comprehensive perspective of City finances and the
relationship to the CIP.
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Item 15
Fiscal Year 2019-20 and 2020-21 Budget Changes
Based on the availability of fund balance above policy reserve levels from FY 18-19, staff
recommends allocating one-time resources to expenditure budgets that will span over the
remainder of the Financial Plan. Staff recommends allocating the funds for both years because
many of the requests are for multi -year staffing contracts or needs and the City's fiscal health
response plan will place further strains on FY2020-21. Staff recommends that Council adopt the
following budget amendments needed for this fiscal year and restrict $885,270 of fund balance
for appropriation with the FY2020-21 budget. Staff expects few, if any, additional significant
operating budget changes to be presented with the supplemental budget as forecasts are highly
volatile, particularly within the unknown impacts on consumer spending related to COVID-19.
A summary of the requests for funding from fund balance above policy reserve levels for all
major funds is provided below:
Policy Context
The City's Charter under Section 804 allows City Council to amend or supplement the budget by
motion adopted by majority vote of the council.
Formal Adoption of Federal Procedures
At the beginning of 2019, in relation to the City's Water Resource Recovery Facility project,
changes were drafted for City procurement standards in order to be compliant with federal
standards when federal funds are procured. The resolution proposed (Attachment C) outlines the
standards required for compliance. The City implemented the changes as of February 1, 2019
and approving the resolution will formally adopt the standards that have been followed since that
time.
Public Engagement
This report is published in advance of the public Council meetings and it will be heard at the
Council meeting as a business item. The public will have an opportunity to comment prior and
during the hearing on this item.
2 Attachment A provides details of the proposed budget adjustments.
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Item 15
CONCURRENCE
The City's Financial Plan Steering Committee concurs with the recommendations included in
this report.
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. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
The requests as detailed below will be funded from unassigned fund balance above policy
reserve levels for the General Fund and four Enterprise Funds.
TABLE 1 — General Fund (Attachment A -Exhibit A)
Requests
1
2
for Appropriationof I'
Youth Services Staffing Crisis
Police — Public Events/ Marches
' IFY20-21
$17,000
$100,000
$68,000
$150,000
3
CDD Tech Support for All -Electric Building Contractors
$50,000
4
Contract Legal Analyst/Office Manager
$25,000
$102,000
5
Trash and Recycling Staff Contract
$40,000
6
2020 Election Costs
$67,752
7
MOTION Project Funding
$58,900
$159,706
8
Communications & Engagement Manager (1.5 Year Contract)
$94,191
$144,854
9
Additional Legal Support
$187,194
$102,957
10
Property Tax Allocation Splitting Model
$25,000
11
Capital Reserve Replenishment for Security Improvements
$380,000
12
Additional Funding to Capital Reserve
$213,020
TOTAL
$1,100,304
$885,270
TABLE 2 — Water Fund (Attachment A -Exhibit B
1 Springbrook Software Version Update $25,000
2 Water Rights Attorney $200,000
3 MOTION Project Funding $13,775 $37,351
TOTAL $238,775 $37,351
s The 2019-20 Budget has $500,000 allocated to Capital Reserve, assuming available fund balance at FY 19-20 Year
End. This request will bring the allocation up to $713,020.
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TABLE 3 - Sewer Fund Attachment A -Exhibit C
Requests for Appropriation of Undesignated Fund Balance FY 19-20 1 FY 20-21
1 MOTION Project Funding $13,775 $37,351
TOTAL $13,775 $37,351
TABLE 4 — Parking Fund (Attachment A -Exhibit D
�:Z�'li iT•�3�� � � i i i i i i1iT[�3T3i�ii�i■�IiiiTi■:�1 , i 11'fL'�►�II ■91'/►IIII►il
1 Parking and Access Management Plan Update $100,000
2 MOTION Project Funding $6,175 $16,742
TOTAL $106,175 $16,742
TABLE 5 — Transit Fund (Attachment A -Exhibit E
Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21
MOTION6..0
TOTALI
!'ABLE 6 — Public Art Fund (Attachment A -Exhibit F
:ZTii i [�3 i i �iT [�3t3 i i ■ �IiiiTi ■ :f1 . i JVi L'D►�II� 11•r[Ib�
1 Public Art Allocation to Enhance Garden Alley $200,000
2 Public Art Allocation to Anholm Greenway $200,000
TOTAL $400,000
ALTERNATIVES
1. Do not approve of the one-time budget allocations. This alternative because these one-time
allocations are mission critical to helping the City achieve its goals and are afforded through
unassigned fund balance above policy reserve levels. The allocations for FY2020-21 will
assist with critical work programs without further stress on the budget due to the City's
Fiscal Health Response Plan.
2. Modify the proposed one-time allocations and associated budget adjustments.
Attachments:
a - Resolution One Time Budget Amendments
b - Completed Capital Projects
c - Resolution - Fed Emergency and Grant Procurement Procedures
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Item 15
RESOLUTION NO. (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AMENDMENTS TO THE 2019-20
BUDGET ALLOCATION FOR THE GENERAL, WATER, SEWER,
PARKING, TRANSIT AND PUBLIC ART FUNDS
WHEREAS, in accordance with the San Luis Obispo City Charter Section 802, the City
Manager submitted the 2019-21 Financial Plan to City Council for its review and consideration on
June 4, 2019; and
WHEREAS, the City Council approved the 2019- 21 Financial Plan and appropriated the
2019-20 budget including operating expenditures, debt service, and capital improvement plan
budget; and
WHEREAS, in accordance with the San Luis Obispo City Charter Section 804, at any
meeting after the adoption of the budget, the City Council may amend or supplement the budget
by motion adopted by a majority vote of the City Council; and
WHEREAS, audited financials show $6.1 million in unassigned general fund balance
above required reserve levels from fiscal year 2018-19; and
WHEREAS, the current required reserve levels include a 20% operating reserve, $1
million revenue stabilization reserve, and $1.4 million in restricted funding for the Section 115
Pension Trust Fund; and
WHEREAS, as outlined in the 2019-21 Financial Plan, $4.2 million is recommended to
fund an additional down payment to Ca1PERS against the oldest outstanding pension liability
balances; and
WHEREAS, the City Manager is recommending the approval of budget appropriations
from the remaining unassigned fund balance for one-time funding as summarized in Exhibits A-
F.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The Finance Director is authorized to make a one-time payment of $4.2
million toward unfunded liabilities in Fiscal Year 2019-20.
SECTION 2. The Finance Director is authorized to make a one-time payment of $1.4
million to fund a pension trust fund in Fiscal Year 2019-20.
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Resolution No. (2020 Series) Page 2
SECTION 3. The 2019-20 budget is hereby amended to appropriate $1,100,304 of
undesignated General Fund balance to budget, including $213,020 of additional funding to be
allocated to Capital Reserve, as specified in Exhibit A.
SECTION 4. The 2019-20 budget is hereby amended to appropriate $238,775 of
undesignated Water Fund balance to operating budget, as specified in Exhibit B.
SECTION 5. The 2019-20 budget is hereby amended to appropriate $13,775 of
undesignated Sewer Fund balance to operating budget, as specified in Exhibit C.
SECTION 6. The 2019-20 budget is hereby amended to appropriate $106,175 of
undesignated Parking Fund balance to operating budget, as specified in Exhibit D.
SECTION 7. The 2019-20 budget is hereby amended to appropriate $2,375 of
undesignated Transit Fund balance to operating budget, as specified in Exhibit E.
SECTION 8. The 2019-20 budget is hereby amended to appropriate $400,000 of
undesignated Public Art Fund balance to CIP budget, as specified in Exhibit F.
SECTION 9. The 2019-21 Financial Plan is hereby amended to appropriate $885,270 of
undesignated General Fund balance to be assigned for one-time budget adjustments during the
adoption of the 2020-21 Supplemental Budget, as specified in Exhibit A.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
2020.
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Resolution No. (2020 Series) Page 3
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 , 2020.
Teresa Purrington
City Clerk
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Exhibits A-F: Budget Amendment Requests
Exhibit - General Fund
Requests for Appropriation of FY 2018-19 One -Time Savings
FY 19-20
FY20-21
Adoption
Appropriation
1
Youth Services Staffing Crisis: Youth Services is facing a staffing
$17,000
$68,000
recruitment and retention crisis. HR staff has conducted an updated
compensation study for Youth Services positions. After analyzing
the results of the compensation study, it was found that the San Luis
Obispo Youth Services position salaries lag market competitors by
roughly 29%. Parks and Rec and HR are proposing to make the 6
Youth Services Site Specialists contract, full-time positions with
employee only benefits and increased wages over the next 15
months (for the remainder of the FY 19-21 Financial Plan) and
monitor staffing challenges throughout this time. Concurrently, a
childcare study will be completed which may contain program
recommendations for City staff. This study is expected to be
completed by June 30, 2021, which will allow us to take both
aspects into consideration for the next Financial Plan.
2
Police — Public Events/ Marches: Police is requesting to increase
$100,000
$150,000
the Department overtime budget by $100,000 to help offset costs
related to political marches, demonstrations (permitted and non -
permitted events), Farmer's Market (two officers are required to
work 5 hours each week), and Council Meetings (one officer is
required to work 4 hours). Staff analyzed overtime data over the
past five years and identified recurring events and other specific
events (politically related) that have increased over the past three
years. Since FY 2016-17, Women's marches and other
demonstrations have collectively resulted in about 860 hours in
overtime, which averages close to 300 hours annually.
3
CDD Tech Support: Technical Support for builders of all -electric
$50,000
buildings Clean Energy Choice Program Incentive
4
Contract Legal Analyst/Office Manager: Request to add a
$25,000
$102,000
Contract Legal Analyst/Law Office Manager to support ongoing
operational needs, the implementation and support of new
technologies and processes to increase office intake, efficiency,
tracking and effectiveness, and to assist in development of long
term structural sustainability plans for the office. Staff have
analyzed existing City positions* (comparing the duties assigned to
various levels of City staff and those intended to be assigned to a
Legal Analyst/Law Office Manager) and have determined the new
position proposed is most closely equivalent to a Senior
Administrative/Financial Analyst or Human Resources Analyst II.
5
Trash and Recycling Staff (Contract): The community continues
$40,000
to express a strong interest in the City to begin a formalized trash
recycle program in the City's parks system. Currently the City
services the parks system with trash service only and this is
accomplished using 0.5 FTE. In order to not contaminate recycled
material in the parks stem separate trash pickup and separate
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recycled pickup is required. The City can accomplish this need by
increase an 0.5 FTE to 1 FTE - contract staff. Additionally, the
resource would be able to help coordinate removal of discarded
belongings in parks, creeks and open sace areas.
6
2020 Election Costs: The City has been notified that the 2020
$67,752
election will cost approximately 30% more than the 2018 election
due to the increased number of registered voters in the City, new
regulations related to mailing requirements and the increased cost
of mailing. In addition, each ballot measure is expected to cost
approximately $40,000. The current budget for the 2020 election
is $56,504 and the new expected costs with the increase are
$84,256.38. In addition, adding the cost of one ballot measure at
$40,000 would bring the total election cost to $124,256. The
requested funds would cover the difference between the budgeted
and expected actual costs assuming the potential for one ballot
measure pending City Council direction.
7
MOTION Project Funding: These funds are needed for the
$58,900
$159,706
continued configuration, testing and implementation of the
MOTION Project. Phases 1 and 2 of the project are live, however,
there is additional investment needed beyond what was originally
anticipated to troubleshoot issues remaining after go live. The City
is working closely with the software provider (Oracle) and
implementer (Sierra Cedar) to resolve these issues at their time and
cost first, but through an analysis of root cause there may be a cost
to the City for resolution of some of the issues. These funds will be
used for additional as -needed services from Oracle and Sierra
Cedar, continuation of a full-time Project Manager (currently
expected to be reduced to half-time in July 2020) to manage the
project and resolution of remaining issues and additional staffing
costs (including overtime) associated with the project. The
methodology for the General Fund and Enterprise split is based off
the originally adopted SOBC in the 16-17 Supplement P D-42 .
8
Communications & Engagement Manager (1.5 Year Contract):
$94,191
$144,854
These funds are needed to hire a contract Communications &
Engagement Manager through the end of the 19-21 Financial Plan
to support the City's overall goals of transparency and engagement
by serving as a centralized resource ensuring city communication
is handled in the most professional, efficient manner possible.
Specific duties would include producing written and visual
information geared to the local community and other stakeholders,
increasing city engagement on social media channels and
supporting departments with their specific communication needs.
This position would also work with local media to provide factual,
timely information and assist city subject matter experts with
responding to media inquiries. By bringing this expertise in house,
the city is creating an advocate who will help all city staff keep the
importance of effective, clear and proactive communication top of
mind while partnering with staff on the execution of thoughtful,
strategic communication programs. The first task for this position
will be to develop and oversee implementation of an updated
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citywide communication plan that supports the city manager's
operational priorities and City Council's policy direction and make
recommendations on the allocation of communication resources
including the potential consolidation of existing contract services.
This position will also provide direct support to the Office of
Sustainability and assist in related communication efforts.
The 2019-20 Request is $24,191 in staffing costs, $70,000 in Non -
Staffing Cost. The non -staffing costs are for $50K related to the
production of print and other materials to support the City's
sustainability work and other tasks outlined above. Additionally,
this request includes $20k related to the costs associated with
onboarding a new staff member including training and
development, technology, office equipment, etc. through the
duration of the contract. The 2020-21 request is $144,853.80 in
staffing costs.
9
Additional Legal Support: This funding is needed to support the
$187,194
$102,957
City's response the recent claims associated with the California
Voting Rights Act against the City. This request includes costs
related to legal services ($150,000) and staff support ($140,151) to
ensure the City has adequate resources to respond to a significant
and intense work effort related to the fundamental processes by
which City Council Members are elected in the City. The amount
of $150,000 was derived to backfill costs already incurred by the
City for legal services related to this work effort and anticipates
additional costs that the City will incur. Legal services are needed
to provide guidance and subject matter expertise in a complex and
evolving area of law as well as the potential use of demography
experts. Staff support includes a Management/Administrative
Analyst position to provide direct support to the Office of the City
Attorney and Administration and IT Department who will be
leading this effort with project management, public outreach,
research and content development. The requested funding for the
Management/Administrative Analyst is through June 2021 and the
position would also be available to assist with City Council special
projects and other initiatives as available.
The 2019-20 request is $14,194 in staffing costs, $170,000 in Non -
Staffing Cost. The non -staffing costs are for $150K related to legal
services. Additionally, this request includes $20k related to the
costs associated with onboarding a new staff member including
training and development, technology, office equipment, etc.
through the duration of the contract. The 2020-21 request is
$102.957.40 in staffing costs.
10
Property Tax Allocation Splitting Model: This funding is needed
$25,000
to provide the City's share in the cost for a shared work effort
between the cities of Paso Robles, Atascadero and the County of
San Luis Obispo to develop a model for splitting property tax
allocations to incentivize housing and economic development in the
region.
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1 1
Capital Reserve Replenishment for Security Improvements: As
$380,000
part of the FY 19-20 Mid -Year Review $380,000 of Capital
Reserve funding was used for a mission -critical City Property
Security project. Staff recommends using one-time savings from
FY 18-19 to replenish the Capital Reserve.
12
Additional Capital Reserve Funding: Staff is recommending
$213,020
allocating the remaining undesignated fund balance to Capital
Reserve. The 2019-20 Budget has $500,000 allocated for Capital
Reserve. The additional amount will bring the allocation to
$713,020. This funding can be used for unforeseen operating or
capital needs.
TOTAL
$1,100,304
$885,270
Exhibit B — Water Fund
Re uests for Appropriation of Undesi mated Fund Balance
FY 19-20
FY 20-21
1
Springbrook Software Version Update: The City has been using
$25,000
Springbrook for utility services billings since January 2010, and the
software is configured to perform all of the City's utility billing processes
and also communicate field service work orders through a CityWorks
integration. Currently, Springbrook software is 2 versions behind, and this
system also requires integration with Cityworks, which is also being
upgraded. In order to continue optimal functionality and connectivity
between the two systems, an upgrade is necessary to Springbrook while
Cityworks is dually installing an upgrade at the same time. This is a one-
time cost for the upgrade and will be funding will be from Water Fund
balance.
2
Water Rights Attorney: Utilize on -call water rights attorney Brownstein
$200,000
Hyatt Farber Schreck to compile and submit water rights licensing
documentation for Whale Rock Reservoir and Salinas Reservoir. For
nearly 30 years the City has been discussing moving from permit to
license for water rights within Salinas Reservoir and Whale Rock
Reservoir. The City's water rights attorney recommends completing the
required paperwork and requesting water rights licenses for Whale Rock
and Salinas prior to the completion of the city's Sustainable Groundwater
Management Plan in 2022. This process could take up to three years to
complete and it is necessary to begin work immediately to work on
securing groundwater resources and surface water resources concurrently.
The current year expenses will be covered by Water Fund balance, and
ongoing expected costs will be identified and included in the supplemental
budget.
3
MOTION Project Funding: These funds are needed for the continued
$13,775
$37,351
configuration, testing and implementation of the MOTION Project.
Phases 1 and 2 of the project are live, however, there is additional
investment needed beyond what was originally anticipated to troubleshoot
issues remaining after go live. The City is working closely with the
software provider (Oracle) and implementer (Sierra Cedar) to resolve
these issues at their time and cost first, but through an analysis of root
cause there may be a cost to the City for resolution of some of the issues.
These funds will be used for additional as -needed services from Oracle
IIs
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and Sierra Cedar, continuation of a full-time Project Manager (currently
expected to be reduced to half-time in July 2020) to manage the project
and resolution of remaining issues and additional staffing costs (including
overtime) associated with the project. The methodology for the General
Fund and Enterprise split is based on the originally adopted SOBC in the
16-17 Supplement D-42 .
TOTAL
$238,775
$37,351
Exhibit C - Sewer Fund
Re uests for Appropriation of Undesi nated Fund Balance
FY 19-20
FY 20-21
1
MOTION Project Funding: These funds are needed for the continued
$13,775
$37,351
configuration, testing and implementation of the MOTION Project.
Phases 1 and 2 of the project are live, however, there is additional
investment needed beyond what was originally anticipated to
troubleshoot issues remaining after go live. The City is working closely
with the software provider (Oracle) and implementer (Sierra Cedar) to
resolve these issues at their time and cost first, but through an analysis of
root cause there may be a cost to the City for resolution of some of the
issues. These funds will be used for additional as -needed services from
Oracle and Sierra Cedar, continuation of a full-time Project Manager
(currently expected to be reduced to half-time in July 2020) to manage
the project and resolution of remaining issues and additional staffing costs
(including overtime) associated with the project. The methodology for the
General Fund and Enterprise split is based on the originally adopted
SOBC in the 16-17 Supplement D-42 .
TOTAL
$13,775
$37,351
Exhibit D — Parkinz Fund
Re uests for Appropriation of Undesi nated Fund Balance
FY 19-20
FY 20-21
1
Parking and Access Management Plan Update
$100,000
2
MOTION Project Funding: These funds are needed for the continued
$6,175
$16,742
configuration, testing and implementation of the MOTION Project.
Phases 1 and 2 of the projects are live, however, there is additional
investment needed beyond what was originally anticipated to troubleshoot
issues remaining after go live. The City is working closely with the
software provider (Oracle) and implementer (Sierra Cedar) to resolve
these issues at their time and cost first, but through an analysis of root
cause there may be a cost to the City for resolution of some of the issues.
These funds will be used for additional as -needed services from Oracle
and Sierra Cedar, continuation of a full-time Project Manager (currently
expected to be reduced to half-time in July 2020) to manage the project
and resolution of remaining issues and additional staffing costs (including
overtime) associated with the project. The methodology for the General
Fund and Enterprise split is based on the originally adopted SOBC in the
16-17 Supplement D-42 .
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TOTAL 1 $106,175 1 $16,742
Exhibit E — Transit Fund
Re uests for Appropriation of Undesi nated Fund Balance
FY 19-20
FY 20-21
1
MOTION Project Funding: These funds are needed for the continued
$2,375
$6,440
configuration, testing and implementation of the MOTION Project.
Phases 1 and 2 of the projects are live, however, there is additional
investment needed beyond what was originally anticipated to
troubleshoot issues remaining after go live. The City is working closely
with the software provider (Oracle) and implementer (Sierra Cedar) to
resolve these issues at their time and cost first, but through an analysis of
root cause there may be a cost to the City for resolution of some of the
issues. These funds will be used for additional as -needed services from
Oracle and Sierra Cedar, continuation of a full-time Project Manager
(currently expected to be reduced to half-time in July 2020) to manage
the project and resolution of remaining issues and additional staffing costs
(including overtime) associated with the project. The methodology for the
General Fund and Enterprise split is based on the originally adopted
SOBC in the 16-17 Supplement D-42 .
TOTAL
$2,375
$6,440
Exhibit F — Public Art Fund
Re uests for Appropriation of Undesi nated Fund Balance
FY 19-20
FY 20-21
1
Public Art Allocation to Enhance Garden Alley: Garden Alley between
$200,000
Garden Street and Broad Street has recently been improvement with
concrete pavers as well as adjacent hotel installation. This alley has
historical been used as the "back of shop" for several business fronting
along Higuera. This area can easily be transformed into a downtown
feature or return to previous use patterns. This funding would be provided
by the Public Art Fund to support improvements that could transform this
area into a special downtown feature.
2
Public Art Allocation to Anholm Greenway: The Anholm Greenway
$200,000
Project is a current CIP Project to increase multimodal opportunity
between the downtown and Foothill area of the City. During the design
development of the project, increased emphasis is planned to be put on
public art in order to create an environment where the community
comfortable and happy (a sense of place). This request would provide
$200,000 from the Public Art Fund to install placemaking enhancements
as part of the project at the Chorro Street and US 101 undercrossin .
TOTAL
$400,000
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Attachment B
CapitalCompleted 2019-21
Project Status
Approx.
Construction
Budget
_
1
*South Broad Street Pavement Improvements
Completed in October
$2,270,500
2
Casa/Murray Waterline Replacements
Ongoing.
$2,055,000
3
Stafford -Kentucky -Taft Sewer Replacement
Ongoing. Completion targeted
November
$1,230,000
4
Osos-Leff-Santa Barbara Sewer Replacement
Completed in September
$1,103,000
5
Sewer Lining 2016
Substantially Completed in August
$524,000
6
Foothill Pipe Bursting
Completed in November
$250,000
7
Sewer Lining 2019
Completed in October
$228,000
8
*Meadow Park Pedestrian Bridge Replacements
Ongoing.
$200,000
9
Council Chamber Audio / Video Replacement
Ongoing.
$175,000
10
*Pickleball Courts
Completed in September
$167,000
11
*Dispatch HVAC Replacement
Completed in October
$151,000
12
Water Treatment Plant Wash Water Tank Recoat
Completed in December
$138,000
13
El Capitan Pedestrian Bridge Replacement
Completed in December
$96,000
14
Silt Removal 2019
Completed in October
$97,000
15
*Swim Center Therapy Pool Re -Plaster
Completed in September
$96,000
16
*Fire Station 4 Emergency Backup Generator
Completed in September
$94,000
17
*City Hall Painting
Completed in September
$40,000
18
*Fire Station 3 Painting
Completed in August
$10,000
Total Budget for Complete or Active Projects
$8,924,500
*Indicates project that was delivered using LRM Funds
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Item 15
RESOLUTION NO. (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADOPTING THE FEDERAL EMERGENCY AND
FEDERAL GRANT PROCUREMENT PROCEDURES
WHEREAS, the Office of Management and Budget (OMB) requires the non -Federal
entity to use procurement standards that conform to the procurement standards in the Uniform
Guidance, codified at 2 CFR Sections 200.317-200.326; and
WHEREAS, the City of San Luis Obispo ("City") prepared and has conducted federally
funded procurements in accordance with the San Luis Obispo Federal Grant Procurement
Procedures ("Procedures"), attached hereto as Exhibit "A", including for procurements conducted
as of February 1, 2019; and
WHEREAS, the City now desires to formalize use of the Procedures through adoption of
the Procedures.
that:
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
SECTION 1. The recitals set forth above are true and correct and are incorporated into
this resolution by this reference.
SECTION 2. The City hereby adopts the San Luis Obispo Federal Emergency and
Federal Grant Procurement Procedures, attached hereto as Exhibit "A", effective as of February 1,
2019.
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SECTION 3. This resolution shall be effective as of the date of adoption. The City Clerk
shall certify the adoption of this resolution.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
2020.
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
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CITY OF SAN LUIS OBISPO
FEDERAL EMERGENCY
AND FEDERAL GRANT
PROCUREMENT PROCEDURES
Effective as of February 1, 2019
990 Palm St.
San Luis Obispo, CA 93401
Exhibit A
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SAN LUIS OBISPO FEDERAL EMERGENCY AND FEDERAL GRANT
PROCUREMENT PROCEDURES
1. Purpose
The purpose of these City of San Luis Obispo ("City") Federal Emergency and Federal Grant
Procurement Procedures is to define the practices and policies governing the procurement of public
works projects, contractual services, professional services or materials, supplies and equipment (i)
in preparation of, during, and after an emergency that may be subject to federal funding or
reimbursement; (ii) when using federal grant funds subject to the regulations set forth in the
following sentence. These Federal Emergency Procurement Procedures are compliant with Title 2
of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards.
2. Emergency Authority
a. "Emergency" is defined under section 2.24.020 of the City's Municipal Code ("City
Code") as:
the actual or threatened existence of conditions of disaster or of extreme
peril to the safety of persons and property within the city caused by such
conditions as air pollution, fire, flood, storm, hazardous materials incident,
drought, sudden and severe energy shortage, plant or animal infestations or
disease, epidemic, riot, nuclear emergency, earthquake or other conditions,
including conditions resulting from war, terrorist acts or imminent threat of
war, which conditions are, or are likely to be, beyond the control of the
services, personnel, equipment and facilities of this city, requiring the
combined forces of other political subdivisions to combat. (Ord. 1560 § 1,
2011: prior code § 2430.1)
b. In the case of a declared emergency, section 2.24.060(A)(6)(b) of the City Code
allows for emergency contracting:
To obtain vital supplies, equipment and such other properties found lacking
and needed for the protection of life and property and to bind the city for
the fair value thereof and, if required immediately, to commandeer the same
for public use.
3. Federally Declared Emergencies and Federal Grants; Procurement and Contracting
Requirements
Exhibit A
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In the event of an emergency declared by the President of the United States, the City must comply
with Federal procurement standards as a condition of receiving public assistance funding from the
Federal Emergency Management Agency (FEMA) for contract costs for eligible work. FEMA
funding is governed by Title 2 of the Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
("Uniform Guidance").
In addition, most federal grant funding is also subject to the Uniform Guidance. Federal grant
compliance requires the grantee to conduct procurements in accordance with written procurement
policies and procedures that comply with the requirements set forth in the Uniform Guidance.
These procurement procedures shall be complied with in connection with utilization of federal
grant funding by the City, in addition to any other specific grant requirements.
These procedures are in addition to and are not intended to replace or supersede the City's other
procurement requirements contained in the City Code and the City Purchasing Manual. In the case
of a conflict between these procedures, the City Code or the City's Purchasing Manual, the more
stringent requirement shall govern, provided that the more stringent requirement would not violate
a federal procurement requirement. In such case, for federally funded contracts, the federal
requirement shall govern.
a. Conflicts of Interest
i. Standards of Conduct for Conflicts of Interest. No employee, officer or
agent of the City shall participate in selection, or in the award or
administration of a contract supported by federal funds if a conflict of
interest, real or apparent, would be involved. Such a conflict would arise
when: The employee, officer or agent; any member of his immediate family;
his or her partner; or an organization which employs, or is about to employ,
any of the above, has a financial or other interest in the firm selected for
award. The City's officers, employees or agents will neither solicit nor
accept gratuities, favors or anything of monetary value from contractors,
potential contractors, or parties to subagreements. Such a conflict will not
arise where the financial interest is not substantial or the gift is an
unsolicited item of nominal intrinsic value. Employees must follow
applicable laws, rules, and regulations in regard to conflicts of interest
including, but not limited to, the Political Reform Act, the prohibition
against contractual conflicts of interest, and guidelines in the California
Code of Regulations regarding acceptance of gifts.
ii. Violations. Disciplinary actions to be applied for violations of the above
standards are as follows.
1. The violation of these Standards of Conduct by City employees will
subject the violator to any disciplinary proceedings or action
deemed appropriate by the City Manager. Employees may correct
a violation in any manner provided for under the Political Reform
Act, and its implementing regulations.
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2. The violation of any of these Standards of Conduct by City officers
will require correction of the violation in any manner provided for
under the Political Reform Act, and its implementing regulations.
3. Contractors or subcontractors that violate these Standards of
Conduct as relates to an active federally -funded procurement may
be prohibited from bidding on the procurement, or may be subject
to other action as deemed appropriate by the City Manager.
4. Agents of the City that violate these Standards of Conduct as relates
to federally -funded procurements may be prohibited from
participation on behalf of the City on federally funded projects, or
subject to other action as deemed appropriate by the City Manager.
b. Procurement Standards
i. Oversight. The City shall maintain administrative oversight of contractors
to ensure that contractors perform in accordance with the terms, conditions
and specifications of their contracts or purchase orders.
ii. Economical Approach. The City must avoid acquisition of unnecessary or
duplicative items. Consideration should be given to consolidating or
breaking out procurements to obtain a more economical purchase. Where
appropriate, an analysis will be made of lease versus purchase alternatives,
and any other appropriate analysis to determine the most economical
approach. The City will enter into state and local intergovernmental
agreements or inter -entity agreements where appropriate for procurement
or use of common or shared goods and services. If feasible and it reduces
project costs, the City will explore using federal excess and surplus property
in lieu of purchasing new equipment and property. When appropriate, the
City will investigate using value engineering clauses in contracts for
construction projects of sufficient size to offer reasonable opportunities for
cost reductions.
iii. Detailed Records. The City shall maintain records sufficient to detail the
history of each procurement. These records will include, but are not
necessarily limited to the following: rationale for the method of
procurement, selection of contract type, contractor selection or rejection,
and the basis for the contract price.
iv. Procurement Issues. The City alone shall be responsible, in accordance with
good administrative practice and sound business judgment, for the
settlement of all contractual and administrative issues arising out of
procurements. These issues include, but are not limited to, source
evaluation, protests, disputes and claims. Protest procedures or information
on obtaining the procedures shall be included in the procurement
documents.
Exhibit A
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c. Competition
i. Full and Open Competition. In order to ensure objective contractor
performance and eliminate unfair competitive advantage, contractors that
develop or draft specifications, requirements, statements of work, or
invitations for bids or requests for proposals must be excluded from
competing for such procurements. Some of the situations considered to be
restrictive of competition include but are not limited to:
1. Placing unreasonable requirements on firms in order for them to
qualify to do business;
2. Requiring unnecessary experience and excessive bonding;
3. Noncompetitive pricing practices between firms or between
affiliated companies;
4. Noncompetitive contracts to consultants that are on retainer
contracts;
5. Organizational conflicts of interest, as further detailed herein;
6. Specifying only a "brand name" product instead of allowing "an
equal" product to be offered and describing the performance or other
relevant requirements of the procurement; and
7. Any arbitrary action in the procurement process.
ii. Organizational Conflicts of Interest. An unfair competitive advantage could
result if a contractor were allowed to submit a bid or proposal for work
described in a specification or statement of work that the contractor itself
developed. For the purpose of eliminating a potential unfair competitive
advantage, and in compliance with applicable state and federal laws and
regulations, a contractor that develops or assists in developing
specifications, requirements, statements of work, invitation for bids, and/or
request for proposals for a City procurement is excluded from competing
for the resultant procurement, unless an appropriate waiver is issued by the
City. All waivers will be assessed by the City on a case -by -case basis.
iii. Geographical Preference. The City shall conduct procurements in a manner
that prohibits the use of statutorily or administratively imposed in -state or
local geographical preferences in the evaluation of bids or proposals, except
in those cases where applicable federal statutes expressly mandate or
encourage geographic preference. When contracting for architectural and
engineering (A/E) services, geographic location may be a selection criteria
provided its application leaves an appropriate number of qualified firms,
given the nature and size of the project, to compete for the contract.
iv. Procurement Transactions. The City shall require the following information
for procurement transactions:
1. A clear and accurate description of the technical requirements for
the material, product or service to be procured. Such description
shall not, in competitive procurements, contain features which
unduly restrict competition. The description may include a
statement of the qualitative nature of the material, product or service
Exhibit A
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to be procured, and when necessary, shall set forth those minimum
essential characteristics and standards to which it must conform if it
is to satisfy its intended use. Detailed product specifications should
be avoided if at all possible. When it is impractical or uneconomical
to make a clear and accurate description of the technical
requirements, a brand name or equal description may be used as a
means to define the performance or other salient requirements of
procurement. The specific features of the named brand which must
be met by offerors shall be clearly stated; and
2. All requirements which the offerors must fulfill and all other factors
to be used in evaluating bids or proposals.
v. Prequalification Lists. The City shall ensure that all prequalified lists, if
used, of persons, firms or products which are used in acquiring goods and
services are current and include enough qualified sources to ensure
maximum open and free competition. The City shall not preclude potential
bidders from qualifying during the solicitation period.
d. Procurement Procedures
The thresholds below are federal thresholds. If City thresholds are lower, the more
restrictive requirement shall govern, notwithstanding the provisions herein.
i. Micro -Purchases. Purchases within the micro -purchase threshold (e.g.,
currently set at purchases of $10,000 or less but periodically adjusted for
inflation) may be awarded without soliciting competitive quotations if the
City considers the price to be reasonable. To the extent practicable, the City
must distribute micro -purchases equitably among qualified suppliers.
ii. Small Purchases. Purchases within the simplified acquisition threshold
(e.g., currently set at purchases of $250,000 or less) shall not be required to
be formally bid. Price quotations must be received from no less than three
(3) sources.
iii. Formal, Sealed Biddiniz.
1. Bids are publicly solicited and a firm -fixed -price contract (lump
sum or unit price) is awarded to the responsible bidder whose bid,
conforming to all the material terms and conditions of the invitation
for bids, is the lowest in price. Formal, sealed bidding is required
for purchases greater than the simplified acquisition threshold,
which is currently set at $250,000, or as may be adjusted by the
Federal Acquisition Regulation, pursuant to 48 CFR § 2.101.
2. This is the preferred method for procuring construction, if a
complete, adequate, and realistic specification or purchase
description is available; two or more responsible bidders are willing
and able to compete effectively and for the business; and the
procurement lends itself to a firm -fixed -price contract and the
Exhibit A
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selection of the successful bidder can be made principally on the
basis of price.
3. The City must publicly advertise the Invitation for Bids and publicly
open all bids at the time and place prescribed in the invitation.
4. Any contracts awarded pursuant to this procedure shall be to the
lowest responsible bidder submitting a responsive bid and shall be
for a firm fixed price. Any or all bids may be rejected if there is a
sound documented reason.
iv. Competitive Proposals.
1. When the nature of a procurement does not lend itself to formal,
sealed bidding, the City may solicit competitive proposals. The
technique of competitive proposals is normally conducted with more
than one source submitting an offer, and either a fixed -price or cost -
reimbursement type contract is awarded.
2. A request for proposals (RFP) must be publicly advertised, and the
City must solicit proposals from an adequate number of sources.
The RFP must identify all evaluation factors and their relative
importance; however, the numerical or percentage ratings or
weights need not be disclosed.
3. Evaluation factors that will be considered in evaluating proposals
shall be tailored to each procurement and shall include only those
factors that will have an impact on the selection decision.
a. The City's procurement officer shall establish a formal
evaluation committee, of at least two persons. The size of
an evaluation committee should be based on the size and
complexity of the goods or services being procured and well
balanced and represented by individuals involved with the
procurement and/or affected by the goods or services being
procured.
b. The evaluation committee will be charged with
responsibility for evaluating proposals in accordance with
the evaluation criteria in the solicitation, short listing firms,
establishing a competitive range, and/or recommending a
firm or firms for contract award.
4. Any contract awarded based on the competitive proposal
procurement process cannot be based exclusively on price or price -
related factors.
5. If a contract is awarded, it shall be to the responsible firm whose
proposal is most advantageous to the City ("best value"), with price
and other factors considered.
v. Competitive Proposals for A&E Services. The competitive proposal
procedures above may be used for procurement of architect and engineering
(A&E) services, provided that proposers must be evaluated based on
competence and qualifications, without regard to price. For A&E
Exhibit A
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procurements, price will not be used as a selection factor. The City will
rank proposers based on qualifications only, and attempt to negotiate fair
and reasonable compensation with the highest ranked proposer. If
negotiations with the highest ranked proposer are unsuccessful, such
negotiations will be terminated and the City will commence negotiations
with the next highest ranked proposer. This process shall be continued with
successive qualified proposers until agreement is reached that is determined
to be fair and reasonable.
vi. Noncompetitive Procurements.
1. Contracts may be procured through a noncompetitive proposal only
when:
a. The item is only available from a single source;
b. The public exigency or emergency for the requirement will
not permit a delay resulting from competitive solicitation;
c. The Federal awarding agency or pass -through entity
expressly authorizes noncompetitive proposals in response
to a written request from the City; or
d. Competition is deemed inadequate after the solicitation of a
number of sources.
vii. Public Projects. Public projects shall be procured by the formal contract bid
procedure as set forth Chapter 3.24, Article III, Formal Contract Procedure
of the City's Municipal Code, Section 203 of the City Purchasing Manual,
and the formal, sealed bidding in this section. If there is conflict between
the foregoing, the more restrictive requirements shall apply.
viii. Award.
1. Responsible Contractor. The City shall award contracts only to
responsible contractors possessing the ability to perform
successfully under the terms and conditions of a proposed
procurement. Consideration will be given to such matters as
contractor integrity, compliance with public policy, record of past
performance, and financial and technical resources.
2. Debarment and Suspension. In accordance with 2 CFR 200.213, in
connection with the responsibility determination, a check of
debarment and suspension using the System for Award Management
(SAM), www.sam.gov, must be performed and documented in the
procurement records prior to award.
e. Contracting with Small and Minority Firms, Women's Business Enterprises,
and Labor Area Surplus Firms
i. The City must take all necessary affirmative steps to ensure the use of
minority businesses, women's business enterprises, and labor surplus area
firms when possible, as set forth at 2 CFR § 200.321 and detailed below.
The City shall:
1. Place qualified small and minority businesses and women's business
enterprises on solicitation lists;
2. Assure that small and minority businesses, and women's business
enterprises are solicited whenever they are potential sources;
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3. Divide total requirements, when economically feasible, into smaller
tasks or quantities to permit maximum participation by small and
minority businesses, and women's business enterprises;
4. Establish delivery schedules, where the requirement permits, which
encourage participation by small and minority businesses, and
women's business enterprises;
5. Use the services and assistance, as appropriate, of such
organizations as the Small Business Administration and the
Minority Business Development Agency of the Department of
Commerce; and
6. Require the prime contractor, if subcontracts are to be let, to take the
affirmative steps listed in paragraphs (1) through (5) of this section.
ii. The City shall document the steps above, and any relevant findings
applicable to any of the steps above in its procurement file.
f. Cost and Price
i. Cost or Price Anal. The City shall perform a cost or price analysis in
connection with every procurement action, including contract
modifications, in excess of the simplified acquisition threshold. While the
method and degree of analysis depend on the facts surrounding the
particular procurement situation, the City must, at a minimum, make
independent estimates before receiving bids or proposals.
ii. Profit. The City shall negotiate profit as a separate element of the price for
each contract in which there is no price competition and in all cases where
a cost analysis is performed as required by 2 CFR § 200.323(b).
iii. Estimated Costs. Costs or prices based on estimated costs for contracts are
allowable only to the extent that costs incurred or cost estimates included in
negotiated prices would be allowable for the City under 2 CFR 200.400 et
seq.
g. Payment Procedures
i. Method of Contracting. Contracts entered into pursuant to these procedures
shall utilize only fixed -price, cost -reimbursement, or, to a limited extent,
time and materials payment methods.
ii. Prohibited Methods of Contracting. The City shall not use the cost plus a
percentage of cost or percentage of construction cost methods of contracting
for any work for which federal reimbursement will be sought.
iii. Time and Materials ("T&M") Contracts
1. T&M contracts should be used rarely, and the use of T&M contracts
should be limited to a reasonable time period (e.g., no more than 70
hours) based on circumstances during which the City cannot define
a clear scope of work.
2. The City shall only enter into a time and materials contract if all of
the following apply:
a. The City has determined and documented in the project file
that no other contract is suitable;
Exhibit A
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b. The contract has a guaranteed maximum price that the
contractor exceeds at its own risk; and
c. The City provides a high degree of oversight to obtain
reasonable assurance that the contractor is using efficient
methods and effective cost controls.
3. The City must define the scope of work as soon as possible to enable
procurement of a more acceptable type of contract (i.e., non-T&M).
iv. Separate Invoicing
1. All purchases made during a proclaimed emergency shall require
separate invoicing from routine (i.e., non -emergency related)
purchases. All invoices shall state the goods, services, or equipment
provided and shall specify where the goods or services were
delivered. All invoices shall specify the location(s) where the goods
or services were used, if possible. Any invoice which fails to
properly identify the emergency nature of the purchase and provide
details as to the date(s) and location(s), as appropriate, shall not be
paid until such errors are corrected by the vendor and re -submitted
in correct form.
v. Auditing of Invoices for Debris Removal. All invoices for debris clearance
and removal shall be audited prior to payment to the contractor. Contractors
shall be notified of this requirement prior to the award of any contract for
debris clearance and/or removal. Audits shall be in accordance with
procedures for debris removal monitoring specified in FEMA's Publication
325, Debris Management Guide.
h. Bonding Requirements
i. Bonding. For construction or facility improvement contracts or
subcontracts exceeding the simplified acquisition threshold (See 2 CFR
200.88), the City shall require at a minimum:
1. A bid guarantee from each bidder equivalent to five percent of the
bid price.
2. A performance bond on the part of the contractor for 100 percent of
the contract price.
3. A payment bond on the part of the contractor for 100 percent of the
contract price.
i. Procurement of Recovered Materials
i. For procurements covered under these procedures, the City and its
contractors must comply with section 6002 of the Solid Waste Disposal Act,
as amended by the Resource Conservation and Recovery Act. In
accordance with these requirements, the City shall only procure items
designated in the guidelines of the Environmental Protection Agency (EPA)
at 40 CFR part 247 that contain the highest percentage of recovered
materials practicable, consistent with maintaining a satisfactory level of
competition; procuring solid waste management services in a manner that
maximizes energy and resource recovery; and establishing an affirmative
Exhibit A
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procurement program for procurement of recovered materials identified in
the EPA guidelines.
ii. This requirement applies to purchases of items when the purchase price of
the item exceeds $10,000, or the value of the quantity acquired during the
preceding fiscal year exceeded $10,000.
j. Contract Provisions
i. Contract Provisions. The City's contracts shall contain the applicable
provisions described in Appendix II to Part 200 — Contract Provisions for
Non -Federal Entity Contracts Under Federal Awards.
k. Pre -Event Contracts
i. The City may choose to solicit bids and proposals and award contracts in
non -disaster times. This may include, but is not limited to, debris removal
contracts and debris monitoring contracts.
Exhibit A
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One -Time Budget Allocations
710-We
Formal Adoption of Federal Emergency
Procurement Procedures.
March 17, 2020
Recommendations
1. Approve Resolution authorizing the City Manager to utilize
$6,185,574 in unassigned FY2018-19 fund balance for the
purposes as listed in Section 1; and
2. Approve one-time funding allocations for the Enterprise funds
and Public Art Fund; and
3. Approve one full-time equivalent ( FTE) position in support of the
reorganization of Community Service departments; and
4. Review recommended changes to the Capital Improvement Plan.
5. Approve a resolution formally adopting the federal emergency
and federal grant procurement procedures in place since
February 1, 2019.
Ending Position FY1 8-19
General fund - Fund Balance June 30, 2019
lonspendable
Assigned w:
Contingency fund ( 0°) Mininium reserve)
General Government
Developnwnt services
lunass igned
Total fund balance
51,636
13,418,400
9,908,93
531,000
Reserve for emergency use related to the effects of COVID-19 or as
outlined in original staff report, by authorization of City Manager.
COVID-19 Recommendation
City Manager Authorization to utilize $6,185,574 in unassigned FY
2018-19 fund balance for the following purposes:
a) Any and all emergency measures required to assure public health
and safety in response to the COVID-19 health emergency.
b) To address and mitigate the long-term fiscal ramifications due to
the COVID-19 health emergency.
c) Make additional one-time payments to CalPERS as determined
responsible given the City's long-term fiscal impact when better
known
d) Allocate budget to FY 2019-20 and FY 2020-21
staff report from March 17, 2020, if the fundin
as outlined in the
g
v up r,u'
LOCI S �4
One Time Funding
Considering the Fiscal Health Response Plan, one-time funding
allocations were determined based on mission critical needs or
costs associated with public health and safety.
Water Fund $238,775 537,351 5276,126
Sewer Fund S 13,775 $37,351
Parking Fund $106,175 $16,742
Transit Fund _ $2,375 $6,440
Public Art Fund $400,000 (Capital)
Pending COVID-19 Fiscal Impact
$51,126
$ l 22,917
$8,815
$400,000
Capital Improvement Plan Overview
• Capital Budget prepared over multi -year period
• Focus on maintenance of existing infrastructure
• Projects individually approved by Council
• Portfolio of projects for a budgetary cycle
• Budget and project specification adjustments
made prior to construction
Upcoming Challenges:
Unprecedented escalation in construction costs
Volatility in financial market
New kwt-5
�induding Development
Agreement projects)
Asset
Replacement
Annual Asset
Maintenance
Adjustment of Capital Budget
L
rrentover-
zed revenues
Unprecedented
Construction
Costs
Project timing
Constraints
Reprioritization
L'sa
® Deferral
Funding Augmentation
➢ Present to Revenue Oversight Committee (REOC) on Mar^h 1. %80,� Xn20TBD
➢ Council Consideration on April 7, 2020 (TBD)
Formal Adoption of Federal Procedures
• Defines the City's procurement policies for when
federal funds are procured
• Defines the City's policies when using federal
grant funds subject to Federal regulations
• Practices and policies were implemented on
February 1, 2019
• This request to formally adopt the procedures that
have been followed since implementation
• Aids in public assistance funding from FEMA in
case of a declared emergency
CITY OF SAN LUIS OBISPO
FEDERAL EMERGENCY
AND FEDERAL GRANT
PROCUREMENT PROCEDURES
Effective as of February 1, 2019
e5o a�m s.
San Las OOi G9&0+
Approval of Additional FTE
• Fully funded position as part of approved 2019-
20 Financial Plan Operating Program
Enhancements.
• During transition, numerous vacancies have
allowed the delay of adding an additional Full
Time Employee (FTE).
• Additional FTE now needed to continue
implementing new structure
THE COMMUNITY
t?ayX&
Ciryfoundl
Advisory
Bodies
City Manager City Attorney
Community Administration Human
ces Pollee Fire & U F
Serviinance Resources
Public Works
utirrles
Parks &
Recreation
Community
Development
Recommendations
1. Approve Resolution authorizing the City Manager to utilize
$6,185,574 in unassigned FY2018-19 fund balance for the
purposes as listed in Section 1; and
2. Approve one-time funding allocations for the Enterprise funds
and Public Art Fund; and
3. Approve one full-time equivalent ( FTE) position in support of the
reorganization of Community Service departments; and
4. Review recommended changes to the Capital Improvement Plan.
5. Approve a resolution formally adopting the federal emergency
and federal grant procurement procedures in place since
February 1, 2019.