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HomeMy WebLinkAbout12-03-2020 REOC Agenda PacketCity of San Luis Obispo, Agenda, Planning Commission Agenda REVENUE ENHANCEMENT OVERSIGHT COMMISSION Thursday, December 3, 2020 Based on the threat of COVID-19 as reflected in the Proclamations of Emergency issued by both the Governor of the State of California, the San Luis Obispo County Emergency Services Director and the City Council of the City of San Luis Obispo as well as the Governor’s Executive Order N-29-20 issued on March 17, 2020, relating to the convening of public meetings in response to the COVID-19 pandemic, the City of San Luis Obispo will be holding all public meetings via teleconference. There will be no physical location for the Public to view the meeting. Below are instructions on how to view the meeting remotely and how to leave public comment. Additionally, members of the Revenue Enhancement Oversight Commissioners are allowed to attend the meeting via teleconference and to participate in the meeting to the same extent as if they were present. Using the most rapid means of communication available at this time, members of the public are encouraged to participate in Commission meetings in the following ways: 1. Remote Viewing - Members of the public who wish to watch the meeting can view:  View the Webinar (recommended for the best viewing quality):  Registration URL: https://attendee.gotowebinar.com/register/8609225934727989771  Webinar ID 412-141-291  Telephone Attendee: +1 (914) 614-3221; Audio Access Code: 954-966-684 Note: The City uses Go to Webinar for REOC Meetings. Please test speakers and mic prior to joining webinar. Click here to watch a YouTube tutorial for GoToWebinar Attendees. 2. Public Comment - The City Council will still be accepting public comment. Public comment can be submitted in the following ways:  Mail or Email Public Comment  Received by 3:00 PM on the day of meeting - Can be submitted via email to advisorybodies@slocity.org or U.S. Mail to City Clerk at 990 Palm St. San Luis Obispo, CA 93401. All emails will be sent to Commissioners and saved as agenda correspondence however we cannot guarantee emails received after 3:00 PM on the day of the meeting we be sent out to Commission or uploaded to the website prior to the meeting starting.  Verbal Public Comment  In Advance of the Meeting - Call (805) 781-7164; state and spell your name, the agenda item number you are calling about and leave your comment. The verbal comments must be limited to 3 minutes. All voicemails will be forwarded to the Commissioners and saved as Agenda Correspondence. Voicemails will not be played during the meeting.  During the meeting – Joining the webinar (instructions above). Once the meeting has started please put your name and the item # you would like to speak on in the questions box. During public comment for the item your name will be called, and your mic will be unmuted. Contact the office of the City Clerk at cityclerk@slocity.org for more information. All Comments/Correspondence received will be saved as part of the record for the meeting. Revenue Enhancement Oversight Commission Agenda for December 3, 2020 Page 2 Thursday November 3, 2020 5:30 p.m. REGULAR MEETING Teleconference CALL TO ORDER Chairperson Jeannette McClure ROLL CALL: Commissioners Christopher Ellwood, Matt Quaglino, Tony Skapinsky, and Vice-Chair Jim Hamari 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 November 24, 2020 BUSINESS ITEMS 2. Immediate Investment in Economic Development Efforts & Homeless Services. (Greg Hermann/Ryan Betz) Recommendation: Recommend to the City Council the appropriation of $3,425,000 in unbudgeted Local Revenue Measure funds for the 2020-21 fiscal year resulting from the passage of Measure for economic recovery efforts, capital projects in the Downtown, and to hire a full-time, contract position to coordinate City efforts to address public health and safety related to homelessness in response to the immediate and long-term impacts of the COVID- 19 pandemic. COMMENT AND DISCUSSION 6. Staff Updates 7. Commission Communications Revenue Enhancement Oversight Commission Agenda for December 3, 2020 Page 3 ADJOURNMENT The next Regular Meeting of the Revenue Enhancement Oversight Commission has yet 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 November 24, 2020 Page 1 Minutes - DRAFT REVENUE ENHANCEMENT OVERSIGHT COMMISSION Tuesday, November 24, 2020 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 Tuesday November 24, 2020 at 5:36 p.m., by Vice Chair McClure, via teleconference. OATH OF OFFICE City Clerk Teresa Purrington administered the Oath of Office to Commissioner Matt Quaglino ROLL CALL Present: Commissioners Christopher Ellwood, Jim Hamari, Matt Quaglino, Tony Skapinsky and Vice Chair McClure Absent: None Staff: Greg Hermann Deputy City Manager and Ryan Betz Assistant to the City Manager and Teresa Purrington, City Clerk were present at Roll Call. PUBLIC COMMENT ITEMS NOT ON THE AGENDA None. --End of Public Comment-- APPROVAL OF MINUTES 2. Consideration of Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of June 30, 2020: ACTION: UPON MOTION BY COMMISSIONER HAMARI SECONDED BY COMMISSIONER ELLWOOD, CARRIED 4-0–1 (COMMISSIONER QUAGLINO ABSTAINING), the Revenue Enhancement Oversight Commission approved the Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of June 30, 2020 as presented. DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of November 24, 2020, Page 2 BUSINESS ITEMS 3. Review Purpose of the Revenue Enhancement Oversight Commission and Elect Officers. Assistant to the City Manager Betz provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None --End of Public Comment-- ACTION: UPON MOTION BY COMMITTEE MEMBER ELLWOOD, SECONDED BY COMMISSIONER QUAGLINO, CARRIED 5-0 to appoint Vice Chair McClure as Chair. ACTION: UPON MOTION BY COMMITTEE MEMBER QUAGLINO, SECONDED BY COMMISSIONER SKAPINSKY, CARRIED 5-0 appoint Commission Hamari as Vice Chair. 4. Introduction to City Finances. Finance Director Brigitte Elke and Accounting Manager/Controller Debbie Malicoat provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None --End of Public Comment-- ACTION: No action taken. 5. Introduction to the Capital Improvement Plan. Matt Horn Public Works Director provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None --End of Public Comment-- ACTION: No action taken. DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of November 24, 2020, Page 3 COMMENT AND DISCUSSION 4. Staff Updates Deputy City Manager Greg Hermann provided an update on Measure G-20. By consensus the Commission agreed to schedule the next REOC meeting for December 3, 2020 at 5:30 PM. 5. Commission Communications ADJOURNMENT The meeting was adjourned at 6:29 p.m. APPROVED BY THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION: XX/XX/2020  Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 12/3/20 Item Number: 2 DATE: December 3, 2020 FROM: Greg Hermann, Deputy City Manager Prepared By: Ryan Betz, Assistant to the City Manager SUBJECT: IMMEDIATE INVESTMENT IN ECONOMIC DEVELOPMENT EFFORTS & HOMELESS SERVICES RECOMMENDATION 1. Recommend to the City Council the appropriation of $3,425,000 in unbudgeted Local Revenue Measure funds for the 2020-21 fiscal year resulting from the passage of Measure for economic recovery efforts, capital projects in the Downtown, and to hire a full-time, contract position to coordinate City efforts to address public health and safety related to homelessness in response to the immediate and long-term impacts of the COVID-19 pandemic. DISCUSSION Background On March 17, 2020, in response to the COVID-19 health emergency and declarations of a State of Emergency by the President of the United States, the Governor of the State of California, and San Luis Obispo County, the City Council adopted Resolution No. 11116 proclaiming a local emergency. At that same meeting, the Council adopted Resolution No. 11117, authorizing the City Manager to use FY 2018- 19 General Fund unassigned fund balance of approximately $5.8 million above required reserve levels, in order to assure public health and safety and to address and mitigate the long-term ramifications due to the COVID-19 health emergency. Approximately $5.4 million of this amount remains. Since that time, the community and business impacts of the COVID-19 pandemic have continued and with the County of San Luis Obispo’s recent transition from Tier 2 (Substantial) to Tier 1 (Widespread), there is an immediate need to invest in additional economic development efforts to support businesses and for homeless services to support the community’s most vulnerable. On December 1, 2020, the City Council will consider adopting a resolution declaring the results of the November 3, 2020 election, including the passage of Measure G-20. A majority of the voters (58.2%) were in favor of Measure G-20, which extends and increases the Local Revenue Measure at a 1.5¢ rate until ended by voters. The collection of the revenue from the new Local Revenue Measure 1.5¢ rate will begin on April 1, 2021. Investment in Economic Development Efforts and Homeless Services The City’s top priority (Meta Goal) for 2020-21 is San Luis Obispo’s economic stability, recovery and resiliency. This priority, adopted by the City Council as part of the 2020-21 Supplemental Budget, provides the structure and focus for the City of San Luis Obispo to continue to respond to, and recover City of San Luis Obispo, Title, Subtitle    from, COVID-19’s public health, economic, and social impacts to the City of San Luis Obispo’ s residents, businesses, and community partners. To support this effort, the Meta Goal identifies ten specific strategies: 1. Community. City residents and community members are encouraged to be engaged in the reopening of the City, the support of local businesses, the continued spirit of community, and the return to San Luis Obispo’ s high quality of life. 2. Businesses. City departments, staff, and programs will assist local businesses to re-open, stay open, thrive, and grow. 3. City Organization. All City Departments will prioritize economic response, recovery, reopening, reinvention, and resiliency activities. 4. Impacted Industries and Business Neighborhoods. City staff will provide focused support to the most impacted business sectors and business neighborhoods. 5. Infrastructure and Capital Projects. Capital improvement projects will be prioritized to address public health and safety, maintenance of existing facilities, and support of Economic Recovery with a focus on projects that advance local business recovery, sustainability, and community vibrancy. 6. Downtown. City departments and staff will work with businesses and community partners to return Downtown San Luis Obispo, the historic, cultural, and social center of the City, to its vibrant and vital state. 7. Cal Poly. City staff will collaborate with and support Cal Poly during its reopening, strengthen existing partnerships, support students living and working in the City, and collaborate to retain knowledge and innovation generators to ensure a resilient future. 8. Community Partners. City staff will work together with existing and new local and regional economic development, arts, cultural, entertainment, and nonprofit partners with clear roles and responsibilities to maximize economic recovery efforts in the City. 9. Quality of Life. Staff will partner with the community for the continued support, preservation, and recovery of the “SLO Life”. The City as a dynamic and safe community with its natural beauty, quality recreational, arts and cultural activities will be nurtured and advanced. 10. Resiliency. During the phases of relief, recovery, and reinvention City staff and programs will begin to identify ways to build both City and businesses’ resiliency In alignment with the Meta Goal, the Measure G-20 ballot language (retention of local businesses, keeping public areas clean/safe, and addressing homelessness) and to support the local economy suffering from the impacts of the COVID-19 pandemic, immediate, additional investment in several economic development efforts as well as homeless services coordination is needed to retain businesses and continue efforts towards economic recovery including: 1. Create Grant Funding Opportunities for Tenant Improvements (TIs) ($2,000,000) One of the keys to the economic recovery is facilitating the re-tenanting of vacant spaces. In addition to the process improvements related to TIs the City has already implemented, a joint City/Downtown SLO vacancy task force and other stakeholders recommend that reducing the financial impact of completing a TI would be of significant benefit. The general concept of this program is to locally invest $2,000,000 in short term Certificates of Deposit to generate interest and use that interest for a grant program to help offset the cost of a TI permit. The principal amount would be budgeted to be spent on projects and services as a part of the 2021-23 Financial Plan. City of San Luis Obispo, Title, Subtitle    2. Expand the SLO City Small Business Relief Grant Program ($500,000) First launched in August 2020, the program is a partnership between the City, nonprofit, and business community that provided a total of $250,000 to 52 business. The new grant program would be for $500,000 with additional priority given to the sectors most impacted by the State’s “Blueprint for a Safer Economy.” 3. Increase Efforts to Support Downtown Vitality ($425,000) The City has allocated significant resources to programs in the Downtown like Open SLO parklets, Mission Plaza Dining and the Light Up Downtown holiday activation. This funding would provide for the expansion and improvement of those programs along with funding for new, similar programs that will be needed as the City continues to respond to the challenges associated with pandemic and recovery of the Downtown. 4. Implement an Economic Development Shop Local Incentive ($200,000) Similar to the successful “Rainy Day” promotion that the TBID has executed in past years, the goal is to incentivize individuals to shop locally and directly support the local business community at the same time. The final program is still being developed, but the general concept is that individuals would be rewarded, through gift cards, for spending money at local brick and mortar locations and the gift cards would then generate additional spending at local businesses. 5. Homeless Services Support and Coordination ($300,000) The County of San Luis Obispo is an extension of the State of California that provides health and human services (and, unlike the City, receives funding for said services). For many years, consistent with our community values of caring for others, the City of San Luis Obispo has dedicated General Fund resources toward homeless services. Focused activities include the operational support of the 40 Prado Homeless Services Center, the City’s Community Action Team (which is comprised of police officers and a mental health professional), coordination of the Community Development Block Grant funding (which has addressing homelessness as a top priority), and the cross departmental collaboration of all departments focused on the clean-up of abandoned property and trash in parks, creeks, and open space associated with illegal camping. During the pandemic the City has continued to direct funds to provide additive homeless services in the City which have included a safe parking pilot program and significant outreach by staff to connect the unsheltered with services so that they may be housed during this unprecedented time. This work has been accomplished, as have most work efforts during the pandemic, by adding workload to existing staff resources; while it is not a direct part of the Meta Goal, it is certainly connected and supportive of that focused effort. This distributed work by staff who are also providing core services and emergency response during the COVID-19 pandemic is not a sustainable staffing approach, and there is much work to be done in this topic area in the coming year given the existing unsheltered and mental health crisis. Beginning in 2021, the County of San Luis Obispo will be coordinating an enhanced regional effort to address the increased impacts of homelessness on the unsheltered, local residents, visitors, and businesses. The objective is to better address this issue in a collaborative and coordinated fashion to allocate limited resources and create efficiencies of service to the unsheltered in the County and all of its cities. Anticipated outcomes of this regional coordination are: a common governance structure; clear City of San Luis Obispo, Title, Subtitle    roles and responsibilities amongst agencies, cities and non-profit partners; efficiencies in operations and service provision (and identification of unnecessary redundancies); and, funding to address the issue in the short- and long-term. To best leverage the outcomes of this regional effort and maximize the use of internal resources, staff recommends hiring a full-time, contract employee through the end of the 2022-23 fiscal year. Short term objectives include coordinated, focused efforts to address issues in highest priority areas of the City, developing a Homelessness Strategic Plan for the City, building upon existing relationships with the County, cities, other regional partners and nonprofits to maximize services available and the determination of long-term resource needs for the preparation of the 2023-25 Financial Plan. The position would be embedded in the Community Services Group in recognition of its external and service orientation and most likely would serve in the Community Development Department given the significant policy linkage with its existing Housing Program. Staff is proposing the allocation of approximately $300,000 to accomplish this multi-year work effort to hire a management level professional skilled at community building, policy development, and budgeting. Role of the Commission The role of the Revenue Enhancement Oversight Commission (REOC) in this process is detailed in section 2.14.040 (E) of the City of San Luis Obispo Municipal Code which states: “E. Budget Recommendations. The REOC shall meet for the purpose of making recommendations to the city council regarding the uses of revenue generated by the community services and investment measure. The REOC shall take into consideration the input provided by residents and community members during the annual citizen oversight meeting, the purpose of the essential services measure, the major city goals established by the city council, and the amount of revenue available from past fiscal years, and projected to be available during the next fiscal year, in making its budget recommendations to the council.” Policy Context The proposed actions are consistent with Measure G-20 as it is a general-purpose measure and priorities in the ballot language including retention of local businesses, keeping public areas clean/safe, and addressing homelessness. The proposed actions are also consistent with the City’s 2020-21 Metal Goal of San Luis Obispo’s stability, resiliency and recovery. ALTERNATIVES   The REOC may decide to not make a recommendation to the City Council with the proposed actions. This is not recommended as businesses are experiencing significant financial distress from the COVID- 19 pandemic and immediate action is required to support the local economy. Delayed action will likely cause greater damage and these actions will likely help mitigate the impacts to the overall health of our community.