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HomeMy WebLinkAbout5/14/2020 Item 2, Betz REOCAgenda Correspondence City of San Luis Obispo, Council Memorandum Date:May 14, 2020 TO:Revenue Enhancement Oversight Commission FROM: Ryan Betz, Assistant to the City Manager VIA:Greg Hermann, Deputy City Manager SUBJECT:Business Item #2–2020-21 SupplementBudgetAdditional Recommendationand Revised Proposed Capital Projects Additional Recommendation On March 17, 2020, the City Council approved a resolution proclaiming a local emergency inthe City of San Luis Obispo related to the COVID-19 pandemic. Part of that action authorized the Emergency Services Director (City Manager) to take allactions necessaryto address the local emergency, including the use of available, but not appropriated, funding from the General Fund. Since that time, the City has takena number of actions to respond toboth the public health and fiscal emergency facing our community as discussed at the previous REOCmeeting. Also discussed at that meeting wastheforthcoming recommendation to not appropriate any available fund balance in the Local RevenueMeasure topreserve the City’s ability tocontinue to provide essential services to the community should there be additional, significant economic shocks to the City. th On Tuesday, May 12, 2020, California State University Chancellor Timothy White announced that the university system, including California Polytechnic State University (Cal Poly), is planning to deliver most of its fall classes online to protect and limit the spreadof COVID-19. Though it is unclear at this timehow many in-person classeswill be available in the falland the number of students that will be returning to the area, the financial impacts to the City’s General Fund revenue based on limited information is estimated to be 3Mfor the fall quarter alone. Previous to the Chancellor’sannouncementthe assumptions used to forecast future revenues, including the Local Revenue Measure,for the2020-21 Supplemental Budget was the return of Cal Poly to in-person classes in the fall. Staff is working to revise the 2020-21 Supplement Budget to adapt to this dynamic situation and is scheduled to present the item to the City Council on June 2, 2020. As identified in the 2018-19 Comprehensive Annual Financial Report (CAFR), there is 1,556,047 available for future year appropriations in the Local Revenue Measure Fund.Due to theknown and unknowneconomic impacts of COVID-19 pandemic, staff is recommending toadd the following recommendation to Business Item #2: Recommend to the City Council the authorization of the City Manager touse available, but not yet appropriated, funding from the Local Revenue Measure to protect essential services andfacilities under the Council-adopted prioritiesfor the use of the Local Revenue Measureduring the City declared COVID-19 emergency. May 14–REOC Agenda CorrespondencePage 2 Staff will provide regular updates to the Commission on any use of these funds including a meeting with the Commission in advance of an anticipated October 2020 City Council to examine the full impacts of COVID-19 on City finances. Revised Proposed Capital Projects Staff isalso recommending additionalrevisions to the projects proposed to be included in the 2020-21 Supplement Budget. These revisions are necessary based onthe continually evolving financial impacts of COVID-19and the implications that has on theCity’s ability to move forward with capital projects. The revised charts are below with proposed revisions highlighted in yellow. REVISED: Proposed Local Revenue Measure Funded Capital Projects for Deferral (pg. 5of Business Item #2) Remaining ProjectBudget Parks Maintenance56,437 Parks Play Surfacing30,000 Parks Water Stations and Supply Lines40,000 Sinsheimer Irrigation & Drainage 570,000 Laguna Lake Dredging and Sediment Management 488,897 Bob Jones Calle Joaquin to Oceanaire216,000 Fleet Replacement655,000 Open Space Acquisition206,812 Emerson Park Fitness Equipment100,000 Meadow Park Par Course20,000 Vista Lago Mini Park Playground40,000 Downtown Renewal (Broad Street)138,950 Meadow Park Pathways Maintenance123,550 Traffic Safety Implementation100,000 Meadow Park Irrigation 90,000 New streetlights 75,000 2015 Traffic Safety Report Improvements 30,000 ADA Transition Plan Implementation19,663 Elsfor Park Fence 15,000 Police Evidence Storage Building5,000 Public Safety Facility Maintenance(1,120) Total$3,020,310 May 14–REOC Agenda CorrespondencePage 3 REVISED: Proposed Supplemental/New Project Funding (pg. 6of Business Item #2) ProjectBudgetDescription Supplemental –Storm Drain 250,000Project will replace of storm drain Improvements on Bullock Lane infrastructure on Bullock Lanewhich is at risk of failure and collapse. Supplemental -Swim Center Bath 60,000Project will complete roof repairs due to House Roof more extensive damage and costs. Supplemental –Public Safety’s Tait 300,000Additional funding to support radio system Radio SystemUpgradeupgrades used by first responders. New Project -Downtown Cleaning 150,000Increases downtown cleanliness to support Equipmentdowntown vitality. New Project -Pedestrian Safety 30,000Project to upgrade apedestrian crossing Improvements on Monterey at Buena near Apple Farmis a safety issue and is Vistarequired by litigation. New Project -Replace City Hall Main 30,000Project will replace an existing electrical Electrical Breakerdisconnect that no longer functions. New Project -Pedestrian Crosswalk 50,000Project will replace failed hardware with a Beacon on Ramonanew system that is easier to maintain, more functional and will improve safety. New Project –Bicycle and Pedestrian 140,000These projects will integrate pedestrian & Quick Build Projectsbicycle improvementsduring neighborhood street paving. New Project –Vehicle Lift for Fleet 78,000Project will replace the failed in-ground Services vehicle lifts used to maintain the City fleet vehicles and address safety issues. Supplemental -Neighborhood Traffic 75,000Supports construction of a traffic circle Improvements improvements on Buchon to reduce vehicle speeds and enhance neighborhood safety Supplemental -Street Reconstruction 137,000Supports ADA improvements and and Resurfacing pavement reconstruction on Nipomo Street from Buchon to Leff. Street Reconstruction and Resurfacing (522,048)Project to support construction of the Orcutt/Tank Farm Roundabout. This reducing in LRM funding will be backfilled with SB1 Gas Tax funding. New Project -Orcutt/Tank Farm 1,072,048Additional funding to support construction Roundabout Construction of the Orcutt/Tank Farm Roundabout. Total$1,850,000 May 14–REOC Agenda CorrespondencePage 4 REVISED:FY 2020-21 Funding Summary (pg. 7 of Business Item #2) Actual Remaining Assessment CategoryAdopted BudgetCostBudget Proceed: Construct in FY2020-2112,528,8564,025,5798,503,278 Proceed: Continue Planning/Design Only1,897,767348,2111,549,555 Hold: Shovel Ready for Future 829,756323,532506,224 Funding/Stimulus -Do Not Defund Proceed Total$10,559,057 Defer: No Further Action this Fiscal Year -3,695,293674,9833,020,310 Defund Completed: No Further Action this Fiscal 3,316,3163,116,478199,837 Year -Defund Defund Total3,220,147 Additional Project Funding(1,850,000) Total Capital Budget Reductions$1,370,147 May 14–REOC Agenda CorrespondencePage 5 Revised Attachment 1: Proposed FY 2020-21 Local Revenue Measure Capital Projects Proceed: Construct in FY 2020-21 Sum of Sum of Cost Sum of Current Including Available Row LabelsBudget CostCommitmentsBalance $ Proceed: Construct in FY2020-2112,528,856 $4,025,579 $ 8,503,278 Street Reconstruction and Resurfacing -Roadway $ Sealing 20204,081,211 $2,819,014 $ 1,262,198 IT Replacements -Annual Asset Maintenance $ Account843,323 $54,144 $ 789,179 $ 911 Phone System20,000 $ 20,000 $ Public Safety MDC and In-Car Video Replacement580,000$ 580,000 $ Radio Handhelds & Mobiles143,123 $ 143,123 $ VMware Infrastructure Upgrade100,200 $ 100,200 $ $ (54,144) (blank)- $54,144 Community Safety Emergency Response $ Communication Equipment840,420 $126,326 $ 714,094 $ KVEC Tower250,000 $0 $ 250,000 $ South Hills Radio Site590,420 $126,326 $ 464,094 $ Marsh at Santa Rosa Replacement 2016 (90480)725,089 $77,258 $ 647,831 Playground Equipment Replacement -Annual Asset $ Maintenance Account617,315 $67,315 $ 550,000 $ Islay Hill Park Playground617,315 $67,315 $ 550,000 Orcutt Tank Farm Roundabout -Supplemental $ Funding550,000 $ 550,000 $ Orcutt Tank Farm Roundabout522,048 $ 522,048 $ Storm Drains Annual Asset Maintenance Account557,367$85,808$ 471,559 $ Bullock Lane307,367 $85,808 $ 221,559 Bullock Lane CMP Replacement -Supplemental $ Funding250,000 $0 $ 250,000 Major Facilities Maintenance -Annual Asset $ Maintenance Account447,000 $48,945 $ 398,055 $ Swim Center Bath House Ceiling30,000 $ 30,000 $ Swim Center Shower System Repair71,000 $ 71,000 $ City Hall Fire Department Connection58,000 $ 58,000 $ Fire Station #1 -HVAC140,000 $ 140,000 $ Swim Center Bath House Roof70,000 $ 70,000 May 14–REOC Agenda CorrespondencePage 6 $ Accelerated Funding -Fleet Services Vehicle Lift78,000 $ 78,000 $ $ (48,945) (blank)- $48,945 $ Urban Forest -Annual Asset Maintenance Account350,797$21,814$ 328,983 $ Fleet Replacements -Annual Asset Maintenance445,000 $127,358 $ 317,642 $ Police SNAP SUV Hybrid55,000 $ 55,000 $ Police Patrol Hybrid SUV (2 Vehicles Total)130,000 $ 130,000 $ Police Patrol Hybrid SUV (4 Vehicles Total)260,000 $ 260,000 $ (127,358) (blank)$127,358 Bicycle Facility Improvements -Annual Asset $ Maintenance Account264,408 $27,733 $ 236,675 $ Radio Handhelds (91583)203,000 $0 $ 203,000 $ New Project -Downtown Cleaning Equipment150,000 $ 150,000 $ Traffic Safety Implementation164,467 $18,379 $ 146,088 $ New Project -Bike/Ped Quick Build Projects140,000 $ 140,000 Street Reconstruction and Resurfacing -Supplemental $ Funding137,000 $0 $ 137,000 $ Railroad Safety Trail Taft to Pepper -2018 (91375)230,261 $114,154 $ 116,107 $ Open Space -Annual Asset Maintenance Account188,254 $97,019 $ 91,235 Pedestrian and Bicycle Pathway -Annual Asset $ Maintenance Account79,000 $0 $ 79,000 Swim Center Bath House Roof (91656) -$ Supplemental Funding60,000 $ 60,000 $ Transportation Safety and Operations55,000 $0 $ 55,000 $ Active Transportation Plan140,000 $86,414 $ 53,586 $ Traffic Signs and Striping Maintenance52,066 $1,098 $ 50,968 New Project -Pedestrian Crosswalk Beacon on $ Ramona50,000 $ 50,000 $ PS Battery Backup (91692)42,706 $0 $ 42,706 $ Pedestrian Crossing Improvements40,000 $0 $ 40,000 $ Broad Street Corridor Access Improvements35,000 $ 35,000 City/County Library HVAC Replacement 2017 $ (91570)31,300 $164 $ 31,136 New Project -Pedestrian Safety Improvements on $ Monterey at Buena Vista30,000 $ 30,000 $ New Project -Replace City Hall Breaker30,000 $ 30,000 May 14–REOC Agenda CorrespondencePage 7 $ Parks & Recreation HVAC 2017 (91572)47,279 $17,806 $ 29,473 $ Multisite Energy Management (91574)32,600 $11,590 $ 21,010 Laguna Lake Golf Course -Annual Asset Maintenance $ Account30,000$10,000$ 20,000 Parks Major Maintenance -Annual Asset Maintenance $ Account20,000 $ 20,000 $ Parks Play Surfacing20,000 $ 20,000 Parking Lot Maintenance -Annual Asset Maintenance $ Account20,000 $0 $ 20,000 $ Fire Station 3 Sewer Lateral Replacement (91687)18,000 $0 $ 18,000 $ Enhanced Open Space (91505)28,970 $15,073 $ 13,898 $ Patrol SUV (91699)51,000$41,704$ 9,296 $ Patrol Sedan (91697)51,000 $41,704 $ 9,296 $ Patrol Sedan (91698)51,000 $41,704 $ 9,296 $ Pest Control (91578)17,500 $9,810 $ 7,690 $ Fire Station Rollup Door (91581)9,500 $3,610 $ 5,890 $ Swim Center Bath House Roof (91656)8,500 $3,800 $ 4,700 Fire Station 1 HVAC (91647) -Design Phase $ Carryover21,800 $20,735 $ 1,065 $ Swim Center Filter Control (91575)10,478 $9,703 $ 775 $ $ (16,205) Traffic Ops Improvements (90884)9,196 $25,401 $ Proceed: Continue Planning/Design Only1,897,767 $348,211 $ 1,549,555 Tait Radio System Bknd Up (91691) -Supplemental $ Funding300,000 $0 $ 300,000 Major Facilities Maintenance -Annual Asset $ Maintenance Account279,500 $0 $ 279,500 $ Energy Management System (EMS)100,000 $ 100,000 $ Fire Station #1 Administration Bldg Roof81,500 $ 81,500 $ Fire Station #3 -Roof50,000 $ 50,000 $ Hydration Stations3,000 $ 3,000 $ Swim Center Olympic Pool Thermal Blankets30,000 $ 30,000 $ Swim Center Therapy Pool Boiler15,000 $ 15,000 $ (blank)- $0 $ - Mission Plaza Restroom Replacements and $ Enhancements300,000 $52,000 $ 248,000 May 14–REOC Agenda CorrespondencePage 8 IT Replacements -Annual Asset Maintenance $ Account135,664 $ 135,664 $ ECC Equipment Replacement35,000 $ 35,000 $ Network Security Upgrade100,664$ 100,664 $ Facility Parking Lot Maintenance (91310)120,000 $0 $ 120,000 $ Tait Radio System Bknd Up (91691)100,000 $0 $ 100,000 $ Swim Center Co-generation Plant (91653)85,000 $5,000 $ 80,000 $ Street Lights -Annual Asset Maintenance Account142,500 $79,846 $ 62,654 Facility Maintenace -Annual Asset Maintenance $ Account63,168 $3,498 $ 59,670 $ HVAC and Sewer Lateral Replacements63,168$3,498$ 59,670 Parks Major Maintenance -Annual Asset Maintenance $ Account50,000 $ 50,000 $ Cheng Park Revitalization50,000 $ 50,000 $ ECC Equipment Replacement (91690)35,000 $295 $ 34,705 $ 2015 Traffic Safety Report Improvements (91607)30,000 $ 30,000 $ Jack House Repairs (91685)16,500 $0 $ 16,500 $ South Street Median Landscaping15,000 $0 $ 15,000 $ Pismo/Johnson/SL Creek Bank Stabilization10,000 $0 $ 10,000 $ Broad and Leff Culvert Repair (91156)10,000 $2,387 $ 7,613 $ Corp Yard Fuel Island Siding (91632)14,750 $14,500 $ 250 $ Police Station Replacement190,685 $190,685 $ - City Parking Lot Maintenance (91642)$0 $ - Hold: Shovel Ready for Future Funding/Stimulus -Do $ Not Defund829,756 $323,532 $ 506,224 $ Sidewalk Annual Asset Maintenance Account358,268 $191,227 $ 167,040 $ Neighborhood Traffic Improvements166,819 $72,636 $ 94,183 $ Air Compressor Replacement -Fire Station 180,000 $0 $ 80,000 Neighborhood Traffic Improvements -Supplemental $ Funding75,000 $ 75,000 $ Storm Drains Annual Asset Maintenance Account75,000 $ 75,000 $ Trash Capture Devices75,000 $ 75,000 $ Parks Hydrate Station (91681)15,000 $0 $ 15,000 May 14–REOC Agenda CorrespondencePage 9 $ Anholm Neighborhood Greenway Plan -Phase 1B & 259,669 $59,669 $ - $ Grand Total15,256,379 $4,697,322$ 10,559,057