HomeMy WebLinkAboutR-11101 approving amendments to the 2019-20 budget allocation for the General, Water, Sewer, ParkingR 11001
RESOLUTION NO. 11101 (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 CalPERS 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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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.
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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 Council Member Pease, seconded by Vice Mayor Gomez, and on the
following roll call vote:
AYES: Council Member Christianson, Pease, Stewart, Vice Mayor Gomez and
Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 17th day of March 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ______________________.
____________________________________
Teresa Purrington
City Clerk
Resolution No. 11101 (2020 Series) Page 4
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Exhibits A-F: Budget Amendment Requests
Exhibit A - General Fund
Requests for Appropriation of FY 2018-19 One-Time Savings FY 19-20
Adoption
FY20-21
Appropriation
1 Youth Services Staffing Crisis: Youth Services is facing a staffing
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.
$17,000 $68,000
2 Police – Public Events/ Marches: Police is requesting to increase
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.
$100,000 $150,000
3 CDD Tech Support: Technical Support for builders of all-electric
buildings (Clean Energy Choice Program Incentive)
$50,000
4 Contract Legal Analyst/Office Manager: Request to add a
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.
$25,000 $102,000
5 Trash and Recycling Staff (Contract): The community continues
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 park system separate trash pickup and separate
recycled pickup is required. The City can accomplish this need by
$40,000
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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 space areas.
6 2020 Election Costs: The City has been notified that the 2020
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.
$67,752
7 MOTION Project Funding: These funds are needed for the
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 (Pg D-42).
$58,900 $159,706
8 Communications & Engagement Manager (1.5 Year Contract):
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
citywide communication plan that supports the city manager’s
operational priorities and City Council’s policy direction and make
$94,191 $144,854
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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
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.
$187,194 $102,957
10 Property Tax Allocation Splitting Model: This funding is needed
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.
$25,000
11 Capital Reserve Replenishment for Security Improvements: As
part of the FY 19-20 Mid-Year Review $380,000 of Capital
Reserve funding was used for a mission-critical City Property
$380,000
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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
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.
$213,020
TOTAL $1,100,304 $885,270
Exhibit B – Water Fund
Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21
1 Springbrook Software Version Update: The City has been using
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.
$25,000
2 Water Rights Attorney: Utilize on-call water rights attorney Brownstein
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.
$200,000
3 MOTION Project Funding: These funds are needed for the 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
$13,775 $37,351
Resolution No. 11101 (2020 Series) Page 8
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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 (pg D-42).
TOTAL $238,775 $37,351
Exhibit C - Sewer Fund
Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21
1 MOTION Project Funding: These funds are needed for the 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 on the originally adopted
SOBC in the 16-17 Supplement (pg D-42).
$13,775 $37,351
TOTAL $13,775 $37,351
Exhibit D – Parking Fund
Requests for Appropriation of Undesignated 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
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 (pg D-42).
$6,175 $16,742
TOTAL $106,175 $16,742
Exhibit E – Transit Fund
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Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21
1 MOTION Project Funding: These funds are needed for the continued
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 (pg D-42).
$2,375 $6,440
TOTAL $2,375 $6,440
Exhibit F – Public Art Fund
Requests for Appropriation of Undesignated Fund Balance FY 19-20 FY 20-21
1 Public Art Allocation to Enhance Garden Alley: Garden Alley between
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.
$200,000
2 Public Art Allocation to Anholm Greenway: The Anholm Greenway
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 undercrossing.
$200,000
TOTAL $400,000