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HomeMy WebLinkAbout03-18-2020 REOC Agenda PacketCity of San Luis Obispo, Agenda, Planning Commission Agenda REVENUE ENHANCEMENT OVERSIGHT COMMISSION Wednesday, March 18, 2020 5:30 p.m. REGULAR MEETING Council Chamber 990 Palm Street San Luis Obispo, CA CALL TO ORDER Chair Chris Coates ROLL CALL: Commissioners Jeannette McClure, Vice-Chair Ken Kienow, and Michael Multari PUBLIC COMMENT: At this time, people may address the Commission about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and, if action by the Commission is necessary, may be scheduled for a future meeting. CONSIDERATION OF MINUTES 1. Draft Minutes of the Revenue Enhancement Oversight Commission of December 12, 2019 BUSINESS ITEMS 2. Annual Audit Review Recommendation: Review the audited financial statements contained in the 2018-19 Comprehensive Annual Financial Report for the Local Revenue Measure (Brigitte Elke & Debbie Malicoat). 3. Proposed Capital Improvement Plan Adjustments to Address Cost of Construction Escalation. Revenue Enhancement Oversight Commission Agenda for 3/18/2020 Page 2 Recommendation: 1) Approve the proposed Capital Improvement Plan funding revisions to address escalation of construction costs and needed funding augmentation. 2) Recommend to the City Council the appropriation of $1,556,047 from 2018-19 Local Revenue Measure (LRM) Fund Balance as noted in the Comprehensive Annual Financial Report (CAFR) for completing capital projects due an increase in construction costs. (Matt Horn) 4. Draft 2018-19 Annual Community Report Review Recommendation: Review the draft 2018-19 Annual Community Report and Report in Brief and provide feedback. (Ryan Betz). 5. SLO Forward Presentation (Ryan Betz & Greg Hermann) COMMENT AND DISCUSSION 6. Staff Updates 7. Commission Communications ADJOURNMENT The next Regular Meeting of the Revenue Enhancement Oversight Commission will occur in April with a date to be determined. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. Meeting audio recordings can be found at the following web address: http://opengov.slocity.org/weblink/1/fol/61028/Row1.aspx DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of December 12, 2019 Page 1 Minutes - DRAFT REVENUE ENHANCEMENT OVERSIGHT COMMISSION Thursday, December 12, 2019 Regular Meeting of the Revenue Enhancement Oversight Commission CALL TO ORDER A Regular Meeting of the San Luis Obispo Revenue Enhancement Oversight Commission was called to order on Thursday, December 12, 2019 at 5:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Chair Christopher Coates. ROLL CALL Present: Commissioners Ken Kienow, Jeannette McClure, Michael Multari and Chair Christopher Coates Absent: Commissioner Winston Newland Staff: Deputy City Manager Greg Hermann and Assistant to the City Manager Ryan Betz PUBLIC COMMENT ITEMS NOT ON THE AGENDA None --End of Public Comment-- APPROVAL OF MINUTES 1. Consideration of Minutes of the Continued Regular Revenue Enhancement Oversight Commission Meeting of April 4, 2019: ACTION: UPON MOTION BY COMMISSIONER MULTARI, SECONDED BY COMMISSIONER MCCLURE CARRIED 4-0-1 (Commissioner Newland absent), to approve the Minutes of the Continued Regular Revenue Enhancement Oversight Commission Meeting of April 4, 2019, as presented. BUSINESS ITEMS 2. Review Purpose of the Revenue Enhancement Oversight Commission and Elect Officers Assistant to the City Manager Betz presented the staff report and responded to Commissioner inquiries. Public Comment None --End of Public Comment-- DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of December 12, 2019 Page 2 ACTION: UPON MOTION BY COMMISSIONER MULTARI, SECONDED BY COMMISSIONER COATES, CARRIED 4-0-1 (Commissioner Newland absent) to elect Commissioner Jeannette McClure to serve as Vice Chair for a one-year term. ACTION: UPON MOTION BY COMMISSIONER COATES, SECONDED BY COMMISSIONER KIENOW, CARRIED 4-0-1 (Commissioner Newland absent) to elect Chair Christopher Coates to serve another one-year term as Chair. 3. Budget Reallocation of the Police Department Facility Parking Lot Maintenance Project Supervising Civil Engineer Nelson presented the staff report and responded to Commissioner inquiries. Public Comment None --End of Public Comment— ACTION: UPON MOTION BY CHAIR COATES, SECONDED BY COMMISSIONER KEINOW, CARRIED 4-0-1 (Commissioner Newland absent) to, forward a recommendation to the City Council to approve the reallocation of Local Revenue Measure funding for the Police Station Parking Lot Maintenance project to other ongoing City Facility Parking Lot Maintenance projects identified in the 19-21 Financial Plan. 4. 2018-19 Annual Community Report and Citizen Oversight Meeting Assistant to the City Manager Betz presented the staff report and responded to Commissioner inquiries. Public Comment None --End of Public Comment— ACTION: UPON MOTION BY CHAIR COATES, SECONDED BY COMMISSIONER MCCLURE, CARRIED 4-0-1 (Commissioner Newland absent) to appoint Chair Coates and Commissioner Kienow to serve on a sub-committee to assist in the development of the 2018- 19 Annual Community Report. DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of December 12, 2019 Page 3 5. Resident Focus Group and Survey Results Regarding Funding Priorities City Manager Derek Johnson presented the staff report and responded to Commissioner inquiries. Public Comment None --End of Public Comment— ACTION: UPON MOTION BY COMMISSIONER MULARTI, SECONDED BY COMMISSIONER KEINOW, CARRIED 4-0-1 (Commissioner Newland absent) to continue public education and outreach efforts and to keep the commission informed of the results of those efforts. COMMENT AND DISCUSSION Greg Hermann Interim Deputy City Manager provided an agenda forecast. ADJOURNMENT The meeting was adjourned at 7:06 p.m. The next Regular Revenue Enhancement Oversight Commission meeting is scheduled for March 18, 2020 at 5:30 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. APPROVED BY THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION: XX/XX/2020  Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 3/18/2020 Item Number: 2 DATE: March 18, 2020 FROM: Brigitte Elke, Finance Director Prepared By: Debbie Malicoat, Accounting Manager/Controller SUBJECT: REVIEW OF AUDITED 2018-19 FINANCIALS RECOMMENDATION Review the audited financial statements contained in the Comprehensive Annual Financial Report (CAFR) for the Local Revenue Measure. DISCUSSION Ordinance No. 1605, establishes the Citizens’ Revenue Enhancement Oversight Commission (REOC) and includes specific citizen oversight and fiscal accountability provisions for the Local Revenue Measure. These provisions include an annual review of the financial statements for the Local Revenue Measure as included in the City’s CAFR: 2.14.040(C.) Annual Audit. The REOC shall meet annually to review the financial statements contained in the Comprehensive Annual Financial Report for the Essential Services Measure. On March 17, 2020, the City Council is recommended to accepted the CAFR for fiscal year 2018-19. As required by the City Charter, the financial statements for the City (including the Local Revenue Measure) were audited by independent certified public accountants. The objective of a financial audit is to provide users of the financial reports with reasonable assurance, from an independent source, that the reports are reliable. The auditor, Badawi and Associates, issued the financial statements with a ‘clean opinion’ which means that they are presented fairly and in conformity with generally accepted accounting principles. As a matter of clarification, LRM funds are a sub-fund of the General Fund and as such the schedules on pages 107 – 109 contained in the CAFR are for informational purposes only. The table below shows $1,556,047 available for future year appropriations in the Local Revenue Measure fund at the end of fiscal year 2018-19. The amount available is due to over-realized revenues, savings in operations due to staffing turnover, and capital project savings. For example, revenues were budgeted in the amount of $7,373,084, however, actual revenues received were $8,428,163, including $102,933 in investment income. This presents a positive variance of $952,146 to the budgeted amounts. At the end of fiscal year 2018-19, the Local Revenue Measure had a fund balance of $6,329,722, of which $4,773,675 remains assigned for capital projects already approved by the REOC and the City Council. An excerpt from the CAFR Transmittal Memorandum with a summary of the audited expenditures and revenues is included below. The complete CAFR is available online at www.slocity.org/budget. City of San Luis Obispo, Title, Subtitle            Half Percent Sales Tax Measure Expenditures: 2018-19 Operating Capital Programs Projects Total Preservation of Essential Services Public Safety 575,310 25,901 601,211 Community Development 269,025 795,165 1,064,190 Transportation 1,085,216 3,366,119 4,450,335 Leisure, cultural and social services 187,245 492,825 680,070 General Government - 1,368,994 1,368,994 Total $ 2,116,796 $ 6,049,004 $ 8,165,800 Half Percent Sale Tax Measure Revenues & Uses Summary Revenues: Sales and use tax - Measure G 1/2 Cent add-on tax $ 8,325,230 Use of money and property 102,933 Total Revenues 8,428,163 Uses: Operating Programs (2,116,796) Capital Projects (6,049,004) Total Uses (8,165,800) Excess of revenues over expenditures 262,363 Prior Sales Tax Measure Balance 6,067,359 Encumbered or designated for carryover for future year expenditures (4,773,675) Net available for future year appropriations $ 1,556,047  Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 3/18/20 Item Number: 3 DATE: March 18, 2020 FROM: Shelly Stanwyck, Assistant City Manager / Interim Public Works Director Prepared By: Matt Horn, Deputy Director of Public Works / City Engineer Brian Nelson, Supervising Civil Engineer SUBJECT: PROPOSED CAPITAL IMPROVEMENT PLAN ADJUSTMENTS TO ADDRESS COST OF CONSTRUCTION ESCALATION RECOMMENDATION 1. Approve the proposed Capital Improvement Plan funding revisions to address escalation of construction costs and needed funding augmentation. 2. Recommend to the City Council the appropriation of $1,556,047 from 2018-19 Local Revenue Measure (LRM) Fund Balance as noted in the Comprehensive Annual Financial Report (CAFR) to recommended projects to be used for increased construction costs. DISCUSSION Background On February 18, 2020, the City Council received its 2019-20 Mid-Year Budget Review report. The purpose of that report is to update the Council and the community on City work programs, workload, performance measures, and changes in financial positions. An update on the status of the Capital Improvement Plan (CIP) was also provided. Significant progress on the CIP have been made including non-LRM projects for the City’s Utilities Department, as well as the 2019 paving and multiple bridge replacement projects including the El Capitan Pedestrian Bridge and the Meadow Park Pedestrian Bridge. The City’s Capital Budget is prepared over a multi-year period and focuses on the maintenance of existing infrastructure and new projects to advance the Major City Goals and adopted plans. CIP projects are prioritized based upon the asset’s current condition, available funding, and the time needed for design and construction. In some instances, projects may be accelerated if an asset is starting to fail or may be deferred to enable other priority projects to be completed. CIP projects are required, depending on the budget amount, to be reviewed by the City Council or City Manager prior to construction. This typically involves the City 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 the City Council for further funding allocations. The costs of materials are City of San Luis Obispo, Title, Subtitle  Proposed Capital Improvement Plan Adjustments to Address Cost of Construction Escalation Page 2    escalating far more rapidly than indexes can predict and the construction industry is facing a labor shortage. Recently, several CIP projects received no bids, which is an unusual occurrence. Global uncertainty in the financial markets and the world in general, due to stock volatility and the COVID-19, have created further turmoil in this industry. This challenge is not isolated to San Luis Obispo as other cities in the State are facing similar conditions. To address the impacts of this disruption, some reprioritization of CIP projects is being recommended so that the City can deliver a successful CIP through the end of this two-year Financial Plan. Staff is proposing to reprioritize capital projects to those that can be completed by June 2021 or that will receive significant steps towards completion during that time period. Given finite resources, the recommendation results in deferrals of some projects to the next Financial Plan. Cost of Construction Escalation and Adjusted Capital Budget Given the challenges described above, and in preparation of both the mid-year review of the City’s budget, and the preparation for the “summer construction season”, staff took a comprehensive review of all general fund CIP projects within the context of the uncertainties and volatility. As a result, there are recommended changes to the CIP projects list that arise from a wide variety of reasons including: 1. Insufficient funds due to escalating costs. 2. Insufficient funds due to shortages in other funding sources including the Road Maintenance and Rehabilitation Act (RMRA or SB 1). 3. Project is not ready – new conditions discovered, design work has taken longer, or scope has been modified to mitigate impacts. 4. Required Right of Way has not been secured. 5. A private development project has been conditioned to do the project and a future partnership project will ensure that the City saves money and expedites delivery. 6. There is a Plan that will guide/define the project scope or priority that is almost complete including the Parks and Recreation Element and Master Plan Update and the Active Transportation Plan. 7. A project has emerged that is a safety project for staff to perform their jobs or the public to be secure. 8. The project is needed for cleanliness reasons, mitigate the community impacts of homelessness, or enhance resiliency of businesses. 9. Development driven projects implementing critical infrastructure must be accelerated or are needed to address impacts. In preparing to meet the objectives of the City’s Major City Goals and Capital Budget, staff have taken a close look at the CIP project list for the 2019-21 Financial Plan and have concluded that there are changes which are recommended to ensure timely completion of projects. A focused, reprioritization of the CIP that will achieve the larger goals and objectives of the Council, REOC, and community and will be sufficiently funded during this unprecedented construction cost escalation has been carefully assessed by staff and is described in detail below. City of San Luis Obispo, Title, Subtitle  Proposed Capital Improvement Plan Adjustments to Address Cost of Construction Escalation Page 3    Capital Projects Overall The following is a list of CIP projects that have been completed within the first half of the 2019-20 Fiscal Year or are currently being constructed and will be complete soon. The summary below reflects expenditures from the City’s General Capital Outlay, Local Revenue Measure, SB 1, Zone 9, Water and Sewer funds and shows the comprehensive enhancements to the City of San Luis Obispo that the Capital Engineering Program provides. Completed 2019-21 Capital Projects Project Status Approx. Construction Budget *South Broad Street Pavement Improvements Completed in October $2,270,500 Casa/Murray Waterline Replacements Ongoing. $2,055,000 Stafford-Kentucky-Taft Sewer Replacement Ongoing. Completion targeted November $1,230,000 Osos-Leff-Santa Barbara Sewer Replacement Completed in September $1,103,000 Sewer Lining 2016 Substantially Completed in August $524,000 Foothill Pipe Bursting Completed in November $250,000 Sewer Lining 2019 Completed in October $228,000 *Meadow Park Pedestrian Bridge Replacement Ongoing. $200,000 Council Chamber Audio / Video Replacement Ongoing. $175,000 *Pickleball Courts Completed in September $167,000 *Dispatch HVAC Replacement Completed in October $151,000 Water Treatment Plant Wash Water Tank Recoat Completed in December $138,000 El Capitan Pedestrian Bridge Replacement Completed in December $96,000 Silt Removal 2019 Completed in October $97,000 *Swim Center Therapy Pool Re-Plaster Completed in September $96,000 *Fire Station 4 Emergency Backup Generator Completed in September $94,000 *City Hall Painting Completed in September $40,000 *Fire Station 3 Painting Completed in August $10,000 Total Budget for Completed or Active Projects $8,924,500 *Indicates project that was delivered using LRM Funds LRM Adjustments Recommended: Deferral or Reduced and Funding Augmentation At this time, because the City has experienced over-realized revenues, unprecedented construction costs, and project timing constraints, there are projects that are recommended for reprioritization, deferral, and funding augmentation. To continue to achieve the important priorities set out in the 2019-21 Financial Plan and to achieve the Council’s Major City Goal work program, and companion CIP projects to those work programs, below are the projects recommended for reprioritization, deferral, and funding augmentation. By deferring or reducing funding some projects, funds are then made available to those projects that are ready and constructible in this time period. The projects are consistent with the nine City of San Luis Obispo, Title, Subtitle  Proposed Capital Improvement Plan Adjustments to Address Cost of Construction Escalation Page 4    local revenue measure priorities and have either been previously funded by LRM (and need added funds) or are consistent with the same and are recommended for funding. Project List Recommended for Deferral or Reduced Funding until Future Financial Plan Project Amount Notes LRM Priority: Bicycle and Pedestrian Improvements Bob Jones Octagon Barn $(40,255) Not ready for construction. Portion of the project is complete (environmental study and design) but a construction grant has not been obtained. Bob Jones Trail Prefumo Creek Connections $(216,000) Recommended to be deferred until the completion of the Active Transportation Plan and Froom Ranch Specific Plan. As part of the mitigation conditions, the developer of Froom Ranch is required to build the path. Downtown Vitality - Broad Street $(115,900) Project is still in the design phase and recommended for deferral until the 2021-23 Financial Plan. This delay provides construction relief to surrounding businesses from the recent construction of a neighboring hotel. Meadow Park Pathway Maintenance $(137,000) Recommended to be deferred pending the adoption of the Parks and Recreation Element and Master Plan update which includes a prioritized list of projects. In addition, the current level of funding is insufficient in this construction cost/bid climate. LRM Priority: Parks & Recreation/Senior Programs and Facilities Cheng Park Revitalization $(50,000) The project is scheduled to be completed after the Marsh Street Bridge Replacement. The project will not require funding for design services. Jack House Repairs $(16,500) Recommended to be deferred pending the adoption of the Parks and Recreation Element and Master Plan update which includes a prioritized list of projects. Emerson Park Fitness Equipment $(100,000) Recommended to be deferred pending the adoption of the Parks and Recreation Element and Master Plan update which includes a prioritized list of projects. In addition, the current level of funding is insufficient in this construction cost/bid climate. Meadow Park Par Course $(20,000) Recommended to be deferred pending the adoption of the Parks and Recreation Element and Master Plan update which includes a prioritized list of projects. In addition, the current level of funding is insufficient in this construction cost/bid climate. Sinsheimer Park Hardscape Replacements $(60,000) Recommended to be deferred pending the adoption of the Parks and Recreation Element and Master Plan update which includes a prioritized list of projects. In addition, the current level of funding is insufficient in this construction cost/bid climate. Vista Lago Mini Park Playground $(40,000) Recommended to be deferred pending the adoption of the Parks and Recreation Element and Master Plan update which includes a prioritized list of projects. In addition, the current level of funding is insufficient in this construction cost/bid climate. LRM Priority: Public Safety City of San Luis Obispo, Title, Subtitle  Proposed Capital Improvement Plan Adjustments to Address Cost of Construction Escalation Page 5    Project List Recommended for Deferral or Reduced Funding until Future Financial Plan Project Amount Notes Police Department Painting $(71,000) Recommended to be deferred due the expectation that the Police Station will be replaced. TOTAL $ (866,655) As noted above, deferring and reducing the projects identified in addition to fully appropriating the available fund balance, enables the following projects to move forward with completion. Project List Recommended for Funding Augmentation Project Amount Notes LRM Priority: Bicycle and Pedestrian Improvements Broad/Woodridge Pedestrian Hybrid Beacon $35,000 A high priority pedestrian safety improvement on Broad Street. Pedestrian Crosswalk Beacon on Ramona (Proposed New LRM Funded Project) $50,000 Replaces the failed hardware with a system that is easier to maintain while addressing safety issues. Pedestrian Safety Improvements on Monterey at Buena (Proposed New LRM Funded Project) $30,000 Required by litigation to upgrade pedestrian crossing near Apple Farm due to safety issues. Traffic Modeling to Support Quick Builds and DT Concept Plan (Proposed New LRM Funded Project) $140,000 Supports paving projects to integrate pedestrian and bicycle improvements, addresses safety issues, and allows for enhanced quick builds. Downtown Cleaning Equipment (Proposed New LRM Funded Project) $150,000 Increased downtown cleanliness. LRM Priority: Flood Protection Bridge Maintenance $3,000 Additional funding needed due to a reduction of RMRA funding. Storm Drain Replacements $367,458 Funding to replace storm drain infrastructure. Additional funding needed due to RMRA SB 1 reductions. LRM Priority: Neighborhood Street Paving Street Reconstruction & Resurfacing $550,000 Funding to maintain roadway infrastructure. Additional funded needed due to a reduction of RMRA funding. LRM Priority: Other Vital Services and Capital Projects Accelerated Funding - Fleet Services Vehicle Lift (accelerated safety issue) $78,000 Will replace failed in-ground vehicle lifts for portable lifts to address emergent life safety issues. Replace City Hall Breaker (Proposed New LRM Funded Project) $30,000 Project will replace an existing electrical disconnect that no longer functions enhances safety to vital location. LRM Priority: Parks & Recreation Senior Programs and Facilities City of San Luis Obispo, Title, Subtitle  Proposed Capital Improvement Plan Adjustments to Address Cost of Construction Escalation Page 6    Project List Recommended for Funding Augmentation Project Amount Notes Islay Hills Playground $38,000 Additional Funds for construction of Islay Hills Park. Approved by Council on 3/17/2020. Swim Center Roof Repairs $30,000 Additional funding to complete roof repairs due to more extensive damage and costs. LRM Priority: Traffic Congestion/Safety Improvements Buchon Neighborhood Traffic Management $75,000 Project installs traffic calming measures in the Buchon neighborhood that will reduce vehicle speeds and increase safety. Orcutt Tank Farm Roundabout $880,000 Funding for the design, construction and construction management for a roundabout at the intersection of Orcutt and Tank Farm. Reduces congestion, increases safety, implements major goals of Housing and Sustainable Transportation. Speed Feedback Signs (Proposed New LRM Funded Project) $50,000 Project will install speed feedback signs in 8 locations. Speed feedback signs lower average vehicle speed by informing drivers of actual rate of speed as well as the posted speed limit. TOTAL $2,506,458   The following charts illustrate how the proposed reappropriations and additional funding of capital project budgets affects the the Local Revenue Measure spending by priority. City of San Luis Obispo, Title, Subtitle  Proposed Capital Improvement Plan Adjustments to Address Cost of Construction Escalation Page 7    Projects Anticipated to be Complete by July 2021 The recommended budget reappropriations and additions are scheduled to be considered by the City Council on April 7, 2020. Should the REOC and City Council approve the recommendation, below are the anticipated projects to be completed by July 2021. The projects below reflect funding from the City’s General Capital Outlay, Local Revenue Measure, SB 1, Zone 9, Water and Sewer funds. CIP Projects Anticipated to be Completed by June 30, 2021 # LRM Funded CIP Project Name 1 TTHM and Pipe Gallery Rehabilitation 2 Council Chamber A/V Replacement 3 X Meadow Park Pedestrian Bridges 4 X Mission Plaza Railing Upgrade 5 X South Hills Radio Site Upgrades 6 X Marsh Street Bridge Replacement (10% LRM) 7 X Downtown Renewal: 858 Higuera 8 X Islay Hill Park Playground Equipment Replacement 9 X Fire Station 1 HVAC Replacements 10 X City Facilities HVAC Replacements 11 Marsh Street Garage Elevator Repair 12 X City Hall Fire Department Connection 13 X Fire Station 1 Air Compressor Replacement 14 X Laguna Lake Maintenance Dredging City of San Luis Obispo, Title, Subtitle  Proposed Capital Improvement Plan Adjustments to Address Cost of Construction Escalation Page 8    CIP Projects Anticipated to be Completed by June 30, 2021 # LRM Funded CIP Project Name 15 X Buchon Traffic Calming 16 X Anholm Bikeway Crack Sealing 17 X Bridge Maintenance 2021 18 X RRST Taft to Pepper 19 X Roadway Sealing 2020 20 X Parking Lot Maintenance 2020 21 X Pedestrian and Bicycle Pathway Maintenance 2020 22 X Parks and Recreation Interior Office Rehabilitation 23 X LOVR and Calle Joaquin Flashing Yellow Arrow 24 X Council Hearing Room and Break Room TI 25 Terrace Hill Pressure Relief Valve 26 X Orcutt / Tank Farm Roundabout 27 X Downtown Safety Bollards Installation 28 X Swim Center Bath House Roof Maintenance 29 X Swim Center Shower Repair 30 X Nipomo Street Reconstruction 31 X Sinsheimer Park Irrigation and Drainage 32 X Storm Drain System Replacement – Bullock CMP 33 Waterline System Replacements 2020 34 Wastewater System Improvements 2020 35 X Buchon and Santa Rosa Storm Drainage Improvements 36 X Emerson Park Fitness Equipment 37 X Swim Center Co-Generation Plant 38 Calle Joaquin Lift Station and Force Main Replacement Local Revenue Fund Balance Allocation As part of the adopted 2018-19 CAFR, the audit accounts for the revenues and expenditures of the Local Revenue Measure. The CAFR shows $1,556,047 available for future year appropriates which is due to over-realized revenues, savings in operations due to staffing turnover, and capital project savings. Given the volatility in cost of construction described above, staff is recommending the available funds be reappropriated to ensure projects are completed by June 30, 2021.  Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 3/18/20 Item Number: 4 DATE: March 18, 2020 FROM: Greg Hermann, Deputy City Manager Prepared By: Ryan Betz, Assistant to the City Manager SUBJECT: DRAFT FY 2018-19 LOCAL REVENUE MEASURE YEAR ANNUAL COMMUNITY REPORT AND REPORT IN BRIEF RECOMMENDATION 1. Review the draft 2018-19 Local Revenue Measure Annual Community Report and Report in Brief and provide feedback. 2. Finalize concepts of the Community Forum and the 2018-19 Annual Citizen Oversight Meeting. DISCUSSION Annual Community Report Chapter 3.15 of the Municipal Code (the Essential Services Transactions [ Sales] and Use Tax) includes specific citizen oversight and fiscal accountability provisions. One of these provisions requires an annual community report: Annual Community Report. A written report shall be reviewed at a public hearing by the Revenue Enhancement Oversight Commission, and a summary will be provided annually to every household in the community detailing how much revenue is being generated by the measure and how funds are being spent (MC 3.15.040.E). At the December 12, 2019 Revenue Enhancement Oversight Commission (REOC) meeting, the Commission provided general feedback on recommended changes to the report and appointed a sub-committee of Chairperson Coates and Commissioner Kienow to provide additional direction. City staff along with a representative from AMF Media Group (AMF), the firm designing the report, met with the sub-committee to discuss potential modifications in detail. Since that time, AMF and staff have been working to develop the report content including new photography. The draft Annual Community Report and Report in Brief (Attachment 1 & 2) are included for the REOC’s review. The Report in Brief will be included in City utility bills in April 2020 and the Annual Report will be discussed at a yet to be determined REOC meeting in April. ATTACHMENTS 1. Draft FY 2018-19 Local Revenue Measure Annual Community Report 2. Draft FY 2018-19 Local Revenue Measure Annual Community Report in Brief LOCAL REVENUE MEASURE ANNUAL COMMUNITY REPORT Fiscal Year 2018–19 CITY OF SAN LUIS OBISPO HOW DID WE SPEND REVENUES? PAGE 5 Read about how Local Revenue Measure funds were spent in 2018–19. LAUREL LANE COMPLETE STREETS PAGE 7 Learn more about our project that included pedestrian, bicyclist and vehicle safety improvements. 1 PROJECT SPOTLIGHT Miossi Open Space The Local Revenue Measure was used to acquire an additional 266 acres of open space east of Cal Poly, on the Miossi Brothers La Cuesta Ranch property, bringing the City’s total open space to over 4,000 acres. The funding was used to leverage additional state grant funding to purchase the land. 2 The Local Revenue Measure – also known as Measure G – is a one-half percent local sales tax approved by City voters in November 2006. It protects and maintains essential services and facilities, such as open space preservation, bike lanes and sidewalks, public safety, neighborhood street paving and code enforcement, flood protection, senior programs, and other vital services and capital improvement projects. The Local Revenue Measure is subject to voter extension in 2023. The Local Revenue Measure is a general-purpose measure and, as such, the proceeds are not restricted to specific purposes. This provides the Council with flexibility to respond to new circumstances and challenges. The voter-approved ballot language provides guidance to use local sales tax revenue to protect and maintain essential services and facilities and identifies examples of services and projects that achieve this objective. These community spending priorities help guide the Citizen’s Revenue Enhancement Oversight Commission (REOC) when making recommendations to the Council about Local Revenue Measure uses. The Council uses the REOC’s input, and additional public feedback, to prioritize the use of Local Revenue Measure funding as part of the City’s two-year financial planning process. WHAT IS THE LOCAL REVENUE MEASURE? Open Space Rangers: The Local Revenue Measure funded two Ranger positions which help maintain over 4,000 acres of open space, 55 miles of trails and lead open space hikes with community members. 3 To protect and maintain essential services and facilities – such as open space preservation; bike lanes and sidewalks; public safety; neighborhood street paving and code enforcement; flood protection; senior programs; and other vital services and capital improvement projects – shall the City’s Municipal Code be amended to extend the current one-half percent local sales tax for eight years, with independent annual audits, public goal-setting and budgeting, and a Citizens’ Oversight Commission? LOCAL REVENUE MEASURE BALLOT LANGUAGE (MEASURE G) FISCAL YEAR The railroad district sidewalk, made up of wooden planks, was deteriorated and created a tripping hazard. The old sidewalk was replaced with concrete pavers. 4 The local one-half percent sales tax revenue totaled $8.4 million in 2018-19, which adds approximately 12 percent to the general fund. The Local Revenue Measure has generated more than $79.4 million since its original adoption in November 2006. REVENUES The streets maintenance portable message board is used for traffic control to deter vehicles away from roadway work zones. A street maintenance worker position is also funded through the Local Revenue Measure. 0 $2M $4M $6M $8M $10M 2011–12 2012–13 2013–14 FISCAL YEAR 2014–15 2015–16 2016–17 2017–18 2018–19 $6,237,500 $6,493,800 $6,774,365 $7,136,300 $7,178,200 $7,376,500 $7,501,500 $8,428,163 0 $2M $4M $6M $8M $10M 2011–12 2012–13 2013–14 FISCAL YEAR 2014–15 2015–16 2016–17 2017–18 2018–19 $6,237,500 $6,493,800 $6,774,365 $7,136,300 $7,178,200 $7,376,500 $7,501,500 $8,428,163 5USES 2018–19 2018–19 Local Revenue Measure funds were used on the following Council-adopted priorities: 9% PARKS AND RECREATION/ SENIOR PROGRAMS AND FACILITIES $720,000 10% OPEN SPACE PRESERVATION $787,000 15% FLOOD PROTECTION $1.2 million 8% BICYCLE AND PEDESTRIAN IMPROVEMENTS $655,000 2% TRAFFIC CONGESTION RELIEF/SAFETY IMPROVEMENTS $176,000 3% CODE ENFORCEMENT $269,000 3% OTHER VITAL SERVICES AND CAPITAL PROJECTS $202,000 39% NEIGHBORHOOD STREET PAVING (INCLUDES IMPROVEMENTS TO BIKE LANES) $3.2 million 11% PUBLIC SAFETY $928,000 Design work to replace the 100-year-old Marsh Street Bridge, located between Osos Street and Santa Rosa Street, has been completed. Construction is set to begin in April 2020 and is expected to be completed in December 2020. New lighting will be installed to replicate the original kerosene fixtures that would be lit every evening. New pedestrian light poles will be installed and equipped with energy-efficient LED fixtures. 6USES 2018–19 The Local Revenue Measure funded patrol officers and a Sergeant, including the Downtown Metro Bicycle Officers. Downtown patrol has been instrumental in being a visual deterrent and enforcement option in the downtown core to keep residents, businesses and visitors safe. For every $1 of revenue generated by the Local Revenue Measure, approximately 70¢ is paid by visitors and 30¢ is paid by City residents (2020 Retail Sales Analysis) Operating Uses ($2.1M) // 26% Capital Uses ($6M) // 74% To fund positions that provide services Examples of these costs include funding for positions such as police officers and flood control staff. To fund construction and investment in equipment The largest capital expenditures funded by the Local Revenue Measure in 2018-19 were neighborhood street paving projects (including bike lane improvements), flood protection and open space preservation. Local Revenue Measure uses fall into two categories: operating expenses and capital expenses. 7PROJECT SPOTLIGHT More than 180 people cross Laurel Lane every day: school children and parents going to the elementary school and regional park, seniors accessing senior living and transit services, and neighbors accessing the community garden and local marketplace. The Laurel Lane Complete Streets and Roadway Maintenance Sealing project included pedestrian, bicyclist and vehicle safety improvements. Roadway maintenance helps decrease vehicle operations costs by fixing potholes and other street repairs. The 2015 Traffic Safety Report identified the intersection of Laurel Lane and Southwood Drive as the highest-ranking intersection for pedestrian collisions on City maintained streets. Laurel Lane Complete Streets Project 8 There are many exciting projects to look forward to in 2019–20 and several have already been completed. For a complete listing of projects funded by the Local Revenue Measure, see the summary table at the end of the report. PLANNED LOCAL REVENUE MEASURE USES SOUTH BROAD STREET ROAD REHABILITATION COMPLETED AUGUST 2019 MEADOW PARK PEDESTRIAN BRIDGE REPLACEMENT COMPLETED APRIL 2020 MARSH STREET BRIDGE REPLACEMENT DECEMBER 2020 RAILROAD SAFETY TRAIL— TAFT STREET TO PEPPER STREET SUMMER 2020 LAGUNA LAKE DREDGING & SEDIMENT MANAGEMENT SUMMER 2020 TWO NEW STREET LIGHTS IN NEIGHBORHOODS NEAR CAL POLY COMPLETED OCTOBER & NOVEMBER 2019 A walk-behind aerator and utility carts help maintain parks, sports fields, and the golf course. A park maintenance worker position is also funded through the Local Revenue Measure. 9 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2018–19 (BUDGET) 2018–19 (ACTUAL) 2018–19 (BUDGET & CARRYOVER*) 2018–19 (ACTUAL) Open Space Protection 551,064 509,886 Open Space Maintenance 131,341 91,392 Laguna Lake Dredging 38,102 33,640 Open Space Wildfire Fuel Reduction 5,000 4,999 Ranger Services (Ranger Staffing: FTE= 2)152,068 147,068 Subtotal 157,068 152,067 720,507 634,918 Sidewalk Replacement 135,943 44,550 Bob Jones Octagon Barn Connection 227,285 184,754 Bob Jones Trail: Prefumo Creek to Oceanaire 216,000 - Railroad District Boardwalk Replacement 5,000 1,165 Railroad Safety Trail: Pepper Street to the Train Station 30,000 27,852 Railroad Safety Trail: Bike Bridge at Phillips Lane 230,840 41,826 Bicycle Transportation Plan Implementation 91,826 90,763 Sidewalk Access Improvements 52,604 - Bicycle Facility Improvements 75,000 592 Safe Routes to School 104,263 58,809 Pedestrian and Bicycle Pathway Maintenance 151,316 14,006 Downtown Renewal 6,000 4,200 Transportation Planning and Engineering (Engineer, Active Transportation Manager: FTE=1.6) 201,675 186,543 Subtotal 201,675 186,543 1,326,076 468,517 OPEN SPACE PRESERVATION BICYCLE AND PEDESTRIAN IMPROVEMENTS CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2019 10CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2019 OPERATING PROGRAMS CAPITAL PROJECTS Traffic Signs and Striping Maintenance 47,930 21,962 Traffic Safety Report Implementation 111,564 10,880 Transportation Safety and Operations 9,196 530 Neighborhood Traffic Improvements 148,819 23,615 Parking Structure Assessment 8,333 8,333 Signal and Light Maintenance (Technician: FTE=1)112,138 110,398 Subtotal 112,138 110,398 325,842 65,320 TRAFFIC CONGESTION RELIEF / SAFETY IMPROVEMENTS OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2018–19 (BUDGET) 2018–19 (ACTUAL) 2018–19 (BUDGET & CARRYOVER) 2018–19 (ACTUAL) Planning and design work was completed for the new Pedestrian Hybrid Beacon (PHB) crossing at the intersection of Foothill Boulevard and Ferrini Road in 2018–19 and installed in December, 2019. This area was identified as the highest safe routes to school improvement priority for Pacheco and Bishop’s Peak Elementary Schools. The PHB, is a traffic control device used to stop road traffic and allow pedestrians and bicyclists to cross safely. 11CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2019 Police Dispatch Technology Maintenance 40,826 2,000 Police Station Replacement Study 145,685 27,755 Police Patrol Vehicle Replacements (4) 265,558 366 Fire Vehicle Replacement (Fire Training Pickup, Ambulance Van) 14,867 14,366 Police Station Building Maintenance and Improvements 13,750 8,750 Fire Stations Building Maintenance 154,250 77,781 Police Handheld and Vehicle Radio Replacement 280,000 - South Hills Radio Upgrade 238,455 75,342 Emergency Dispatch Center Maintenance 256,033 5,409 New Street Lights 110,000 48,009 Laurel Lane Streetlight 100,000 91,007 Fire Station 4 Backup Generator 100,877 7,106 PulsePoint CRP Software 8,000 8,000 Patrol Services (Officers, Sergeant: FTE = 4) 928,077 562,311 Subtotal 936,077 570,311 1,720,300 357,892 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2018–19 (BUDGET) 2018–19 (ACTUAL) 2018–19 (BUDGET & CARRYOVER) 2018–19 (ACTUAL) PUBLIC SAFETY 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. Street Reconstruction and Resurfacing (Laurel Lane and Southwood Street area) 2,466,861 2,464,872 Concrete Streets Repair (Dana, Toro & Palm, Palm & Johnson) 436,661 435,360 Marsh Street Bridget Replacement 725,089 - Streets Maintenance Loader with Skip & Drag Attachment 330,287 130,022 Corp Yard Fuel Island Siding 14,750 13,049 Streets and Sidewalk Maintenance (Maintenance Worker, Project Engineer: FTE = 2) 217,194 191,053 Subtotal 217,194 191,053 3,973,647 3,016,783 12CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2019 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2018–19 (BUDGET) 2018–19 (ACTUAL) 2018–19 (BUDGET & CARRYOVER) 2018–19 (ACTUAL) NEIGHBORHOOD STREET PAVING INCLUDES IMPROVEMENTS TO BIKE LANES CODE ENFORCEMENT Building and Safety (Code Enforcement Officer, Neighborhood Services Specialists: FTE = 3) 269,025 269,025 Subtotal 269,025 269,025 - - The City-County Public Library required a roof replacement and drainage improvements as part of the second phase of the remodel, major maintenance and ADA compliance project. 13 Storm Drain System Replacement 431,211 392,839 Ellen Way Storm Drain Improvements 2017 241,500 202,408 Broad and Leff Culvert Repair 10,000 2,387 Creek and Flood Protection (Collection System Personnel: FTE = 6) 652,195 597,222 Subtotal 652,195 597,222 682,711 597,635 CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2019 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2018–19 (BUDGET) 2018–19 (ACTUAL) 2018–19 (BUDGET & CARRYOVER) 2018–19 (ACTUAL) FLOOD PROTECTION PARKS AND RECREATION / SENIOR PROGRAMS AND FACILITIES Parks Major Maintenance & Repairs 565,416 134,500 Ludwick Center Gym Lights 15,500 15,610 Swim Center Building Maintenance and Equipment Replacement 79,981 11,006 Jack House Building Maintenance 74,000 2,250 Islay Hill Park Playground Equipment Replacement 80,000 46,139 Sinsheimer Irrigation & Drainage 120,000 - Sinsheimer Stadium Backstop 165,886 165,886 City/County Library Major Maintenance 177,076 145,839 Parks and Recreation Building Maintenance 47,279 15,635 Swim Center Co-generation Plant 85,000 - Parks Maintenance Equipment Replacement 30,000 14,060 Parks Maintenance Walk Behind Mower & Aerator 41,839 41,839 Parks Maintenance Utility Carts With Dump Beds (2) 56,000 55,885 Mission Plaza Restroom Replacements and Enhancements 105,000 30,955 Parks and Landscape Maintenance (Maintenance Worker: FTE = 1) 84,563 40,177 Subtotal 84,563 40,177 1,642,978 679,603 14 Facilities Annual Asset Maintenance Account 58,168 City Hall Chiller Replacement 224,924 201,817 Multisite Energy Management 32,600 Undesignated Capital 114,927 Subtotal - - 430,619 201,817 TOTAL LOCAL REVENUE MEASURE USES 2,629,935 2,116,797 10,822,681 6,049,004 CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2019 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2018–19 (BUDGET) 2018–19 (ACTUAL) 2018–19 (BUDGET & CARRYOVER) 2018–19 (ACTUAL) OTHER VITAL SERVICES AND CAPITAL PROJECTS * Budget & Carryover includes unspent funds for planned but not yet completed projects The Ellen Way storm drain improvement project included the replacement of outdated storm drain pipelines to improve stormwater management and to reduce the potential for flooding. 15 Open Space Preservation, Bicycle and Pedestrian Improvements, Traffic Congestion Relief/Safety Improvements, Public Safety, Neighborhood Street Paving, Code Enforcement, Flood Protection, Parks and Recreation/Senior Programs and Facilities, other Vital Services and Capital Projects. PRIORITIES SET BY THE CITY COUNCIL FOR FY 2018–19 INCLUDE: CITY OF SAN LUIS OBISPO For more information, please visit: www.slocity.org/budget Design: AMF Media Group Photography: Kelly Donohue Photography Owen Main Photography City of San Luis Obispo Sidewalk replacements improve accessibility for pedestrians by replacing defective sidewalks with upgrades including curb ramps, tree grates and storm water drainage. Sidewalks on Broad, High, Walker, Marsh and Fredricks Streets were replaced and improved. Winston Newland Commissioner Chris Coates Chair CITIZENS’ REVENUE ENHANCEMENT OVERSIGHT COMMISSION Volunteer Residents Serve on the Commission The Revenue Enhancement Oversight Commission (REOC) reviews, reports, and makes recommendations directly to the City Council regarding the revenue and expenditures of the City’s general purpose, half-percent sales tax. The REOC consists of five members, who must be residents and registered voters of the City. Michael Multari Commissioner Ken Kienow Vice Chair Jeannette McClure Commissioner WHAT IS THE LOCAL REVENUE MEASURE? ANNUAL COMMUNITY REPORT IN BRIEF Fiscal Year 2018–19 11%PUBLIC SAFETY $928,000 39%NEIGHBORHOOD STREET PAVING (INCLUDES IMPROVEMENTS TO BIKE LANES) $3.2 million 9%PARKS AND RECREATION/ SENIOR PROGRAMS AND FACILITIES $720,000 10%OPEN SPACE PRESERVATION $787,000 15%FLOOD PROTECTION $1.2 million 8%BICYCLE AND PEDESTRIAN IMPROVEMENTS $655,000 2%TRAFFIC CONGESTION RELIEF/SAFETY IMPROVEMENTS $176,000 3%CODE ENFORCEMENT $269,000 3%OTHER VITAL SERVICES AND CAPITAL PROJECTS $202,000 2018–19 Local Revenue Measure funds were used on the following Council-adopted priorities: HOW IS YOUR 1/2 PERCENT SALES TAX SPENT? Open Space The Local Revenue Measure was used to acquire an additional 266 acres of open space east of Cal Poly, on the Miossi Brothers La Cuesta Ranch property, bringing the City’s total open space to over 4,000 acres. The funding was used to leverage additional state grant funding to purchase the land. Public Safety The Local Revenue Measure funded patrol officers and a Sergeant, including the Downtown Metro Bicycle Officers. Downtown patrol has been instrumental in being a visual deterrent and enforcement option in the downtown core to keep residents, businesses and visitors safe. City/County Library Roof Replacement The City-County Public Library required a roof replacement and drainage improvements as part of the second phase of the remodel, major maintenance and ADA compliance project. Flood Protection The Ellen Way storm drain improvement project included the replacement of outdated storm drain pipelines to improve stormwater management and to reduce the potential for flooding. SPENDING HIGHLIGHTS The Local Revenue Measure – also known as Measure G – is a one-half percent local sales tax approved by City voters in November 2006. It protects and maintains essential services and facilities, such as open space preservation, bike lanes and sidewalks, public safety, neighborhood street paving and code enforcement, flood protection, senior programs, and other vital services and capital improvement projects. The Local Revenue Measure is subject to voter extension by March 31, 2023. These community spending priorities help guide the Citizens’ Revenue Enhancement Oversight Commission (REOC) when making recommendations to the Council about Local Revenue Measure uses. The Council uses the REOC’s input, and additional public feedback, to prioritize use of the Local Revenue Measure funding as part of the City’s two-year financial planning process. Local one-half-percent sales tax revenue totaled $8.4 million in 2018–19, which adds approximately 12 percent to the general fund. The Local Revenue Measure has generated more than $79.4 million since its original adoption in November 2006. REVENUES CITY OF SAN LUIS OBISPO // For a complete list of 2018–19 Local Revenue Measure uses, view the full report at slocity.org/localrevenue $8.4M Laurel Lane Complete Streets Project More than 180 people cross Laurel Lane every day: school children and parents going to the elementary school and Sinsheimer park, seniors accessing senior living and transit services, and neighbors accessing the community garden and local marketplace. The Laurel Lane Complete Streets and Roadway Maintenance Sealing project included pedestrian, bicyclist and vehicle safety improvements. Roadway maintenance helps decrease vehicle operations costs by fixing potholes and other street repairs. The 2015 Traffic Safety Report identified the intersection of Laurel Lane and Southwood Drive as the highest-ranking intersection for pedestrian collisions on City maintained streets. For every $1 of revenue generated by the Local Revenue Measure, approximately 70¢ is paid by visitors and 30¢ is paid by City residents. (2020 Retail Sales Analysis) PROJECT HIGHLIGHT Operating Uses ($2.1M) // 26% – Funds positions that provide services Examples of these costs include funding for positions such as police officers and flood control staff. Capital Uses ($6M) // 74% – Funds construction and investment in equipment The largest capital expenditures funded by the Local Revenue Measure in 2018–19 were neighborhood street paving projects (including bike lane improvements), flood protection and open space preservation. Sidewalk Replacement Sidewalk replacements improve accessibility for pedestrians by replacing defective sidewalks with upgrades including curb ramps, tree grates and storm water drainage. Sidewalks on Broad, High, Walker, Marsh and Fredricks Streets were replaced and improved.