HomeMy WebLinkAbout04/15/1997, 1 - COUNCIL GOAL WORK PROGRANS FOR 1997-99 Council Agenda Report- Council Goal Work Programs for 1997-99
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Past experience tells us that it is important to fully flesh-out and reach Council consensus on not
only the objective, but also the program, action plan and resources that will be necessary to
accomplish it as well. Unless we fully understand the proposed scope and timeframe that the
Council intended, we can not identify needed resources; and without this understanding, the
budget may significantly over (or under) fund the desired work effort. In short, before the staff
begins to build the Preliminary Financial Plan around Council goals, it is essential that we have a
good understanding of what the Council hopes to achieve with each goal over the next two years.
In summary, for us to prepare a balanced budget (within the general policy guidance provided to
us by the Council) that achieves Council goals we need to have a clear understanding of what the
goals are.
Limits of the Work Programs
As stated above, the purpose of the work programs is to clearly identify the scope (and related
resource requirements)for each goal. However, it is important to stress that approval of the work
programs at this stage is not formal approval of either the goal or the budget for it; this will not
occur until the Council approves the 1997-99 Financial Plan in its entirety in June of 1997 — and
this will not occur until after extensive workshops and public hearings.
Organization of the Work Programs
The attached work programs are organized into two main sections:
■ Summary of the goals organized by priority category.
■ Detailed work programs for each of the goals.
Each work program includes the following information:
■ Objective
N Background
a Issues we will face in achieving the goal
■ Action plan—tasks and schedule
■ Responsible department
M Financial and staff resources required to achieve the goal
■ Outcome—why this goal is important
Other Council Referrals
In addition to formally setting goals for 1997-99, the Council also referred the following
objectives to staff for review and consideration during the budget preparation process:
■ Senior center parking
■ Funding for extended library hours
■ Funding for HRC grants
■ Homeless services center construction and operation
6 Dalidio annexation
■ Development review streamlining
■ ARC guidelines
■ Historical preservation/funding for adobes via non-profit group
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Council Agenda Report- Council Goal Work Programs for 1997-99
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■ Funding for PCC grants -review of promotion efforts
■ Employee development: tuition reimbursement/training
As staff prepares their program budgets and objectives for 1997-99, we will attempt to
incorporate these items whenever possible given other workload priorities.
Other Program Objectives
The Preliminary Financial Plan (which is scheduled to be issued on May 7) will also include
objectives proposed by the staff for improving the delivery of City services. These are different
from Council-initiated goals in two important ways:
■ Council goals are generally focused on objectives that can only be successfully achieved
through Council leadership, support and commitment; program objectives proposed by
staff are typically more internally focused on improving day-to-day operations, and can
usually be achieved through staff leadership, support and commitment.
■ Achieving major City goals has a higher resource priority.
Each of the 70 or so operating programs presented in the Preliminary Financial Plan will clearly
identify major City goals, Council goals, and other program objectives.
General Budget Preparation Framework
In striving to achieve Council goals, while also ensuring that essential services are delivered at
acceptable levels, we will be guided in preparing the Preliminary Financial Plan by the budget
direction already provided to us by the Council, which is composed of four parts:
■ Limiting operating cost increases and reviewing service levels for expenditure reduction
opportunities.
■ Developing a capital improvement plan (CIP) that adequately maintains our existing
infrastructure and facilities.
■ Considering new revenue opportunities as allowed under Proposition 218.
■ If needed, making strategic use of fund balance and temporarily taking it below policy
levels, subject to preparing a definite plan for restoring this balance in the future.
At this time,we believe that this is sufficient policy direction to us in producing a balanced budget
that meaningfully addresses Council goals.
Next Steps
Detailed budget preparation is currently underway by the departments. Once the Council goal
work programs have been finalized and departmental budget requests have been received, we will
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Council Agenda Report-Council Goal Work Programs for 1997-99
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begin an in-depth internal budget review process, which will lead to issuance of the Preliminary
Financial Plan by the CAO on May 7.
Key next steps in the budget review process are:
Bud-et
• CAO issues preliminary budget Wednesday,May 7
• Council holds budget workshop-General Fund focus(special meeting) Saturday,May 17
• Council holds budget workshop-Enterprise Fund focus(special meeting) Tuesday,May 27
• Council continues budget review(regular meeting) Tuesday,June 3
• Council continues budget review; adopts budget(regular meeting) Tuesday,June 17
While the public will certainly be provided with the opportunity to discuss budget issues with the
Council at all of these workshops and hearings, the last two meeting dates (June 3 and June 17)
will be formally advertised public hearings.
FISCAL]IMPACT
There are no direct fiscal impacts associated with approving Council goal work programs:
approval of work programs is not approval of the budget. As discussed above, this will only
occur after adoption of the Financial Plan in June, following issuance of the Preliminary Financial
Plan and extensive budget workshops and hearings.
Nonetheless, this is a very important step in the process, because with this direction, staff will be
sure that we understand the Council's intent, and we can prepare the Preliminary Financial Plan
accordingly.
ATTACHMENT
Council goals work programs for 1997-99
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COUNCIL GOAL WORK PROGRAMS
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CITY OF SAN LUIS OBISPO
COUNCIL GOAL WORK PROGRAMS
1997-99 Financial Plan
TABLE OF CONTENTS
Summary 1 OTHER IMPORTANT GOALS
Work Programs Transportation
Neighborhood Traffic Mitigation 39
MAJOR CITY GOALS Bicycle Plan Implementation 41
Transit Transfer Center 42
Public Utilities Improved Vehicle Circulation 44
Long-Term Water Supply Development 3
Community Development
Transportation Long-Term Open Space Funding 46
Street and Sidewalk Maintenance 6 Continued Open Space Funding 48
Flood Protection 8 Mid-Higuera Street Master Plan 50
Transit Service 11
Parking System Improvements 13 ADDRESS AS RESOURCES PERMIT
Leisure, Cultural&Social Services Laguna Lake Dredging 53
Youth Athletic Fields 15 Conservation and Energy Element Updates 55
Parks and Recreation
Element Implementation 21
Community Development
Airport Area Annexation 23
Madonna Plaza and Central Coast
Mall Revitalization 26
Economic Development 28
Neighborhood Preservation 30
General Government
Long-Term Fiscal Health 32
Community Partnerships 36
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
SUMMARY
MAJOR CITY GOALS
Public Utilities
■ Long-term water supply development. Meet the City's long-term water supply needs by: reaching
agreement with North County cities on the Nacimiento pipeline and Salinas reservoir projects; and
completing phase 1 of the water reuse project.
Transportation
■ Street and sidewalk maintenance. Complete an inventory of current street and sidewalk conditions,
update the City's pavement management plan as needed, and continue ongoing maintenance of City streets
and sidewalks.
■ Flood protection. Adopt and begin implementing flood management plans for creeks, open channels and
storm drainage systems.
■ Transit service. Maintain existing level of service provided by the City's transit system.
■ Parking system improvements. Begin building the Marsh street parking garage expansion.
Leisure, Cultural&Social Services
■ Youth athletic fields. Participate with Cal Poly as a partner in developing a sports facilities complex,
subject to resolving funding,use,neighborhood and environmental concerns.
■ Parks and recreation element implementation. Continue implementing the parks and recreation element
of the General Plan,emphasizing neighborhood parks,at-risk youth,youth and seniors.
Community Development
■ Airport area annexation. Prepare the pre-requisite specific plan and related infrastructure master plans in
order to implement the General Plan goal of annexing the airport area to the City.
■ Madonna plaza and central coast mall revitalization. Proactively work to revitalize Madonna Plaza and
the Central Coast Mall.
■ Economic development. Continue implementing the economic development program, including focused
business recruitment efforts consistent with the results of the targeted industry cluster study.
■ Neighborhood preservation. Continue neighborhood preservation efforts relating to noise, traffic and
maintenance;and continue to support efforts encouraging additional"on-campus"student housing.
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General Government
■ Long-term fiscal health. Protect the City's long-term fiscal health by maintaining a balanced budget, an
adequate capital improvement plan and an adequate unreserved fund balance.
■ Community partnerships. Encourage creating non-profit corporations for projects such as open space
acquisition and adobe preservation.
OTHER IMPORTANT GOALS
Transportation
■ Neighborhood traffic mitigation. Implement traffic mitigation programs in neighborhoods and
commercial areas called for by the General Plan circulation element.
■ Bicycle plan implementation. Continue implementing projects and programs called for by the adopted
bicycle transportation plan.
■ Transit transfer center. Construct a multi-modal transit transfer center south of the existing Railroad
Square parking lot, east of Santa Barbara Street; and construct a transit "super stop" in the downtown
commercial core to improve transit access and increase safety.
■ Improved vehicle circulation. Implement projects and programs called for by the adopted General Plan
circulation element that improve vehicle circulation.
Community Development
E Long-term open space funding. Identify a permanent funding mechanism for preserving open space,
possibly to be presented to voters for approval in November of 1998.
■ Continued open space funding. Continue open space funding by allocating $100,000 annually in General
Fund resources toward acquisition efforts.
■ Mid-Higuera street master plan. Prepare and adopt a master plan for the mid-Higuera Street area
(bordered by the intersection with Marsh Street to the north and Madonna Road to the south) guiding
improvements on sites affected by any widening of Higuera Street or San Luis Obispo Creek.
ADDRESS AS RESOURCES PERMIT
E Laguna lake dredging. Dredge appropriate sections of Laguna Lake to maintain an adequate lake depth
for recreational uses, improve flood protection, create a more suitable environment for aquatic life, and
increase the health and longevity of the lake.
■ Conservation and energy element updates. Update the 1973 conservation element and 1981 energy
element of the General Plan.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
LONG TERM WATER SUPPLY DEVELOPMENT
OBJECTIVE
Meet the City's long-term water supply needs by: reaching agreement with North County cities on the Nacimiento
pipeline and Salinas reservoir projects;and completing phase 1 of the water reuse project.
DISCUSSION
Background
The development of additional water supplies to meet the City's long range water needs has been a major city goal
for a number of years. The drought of 1986-1991 further heightened the awareness of the City's precarious water
supply position. In 1994, Council adopted an Urban Water Management Plan which established revised per capita
water use rates and identified the amount of additional water supplies needed to meet our General Plan goals. The
City has been pursuing the possible development of three water supply projects -- the Nacimiento .pipeline, the
Salinas Reservoir expansion and the Water Reuse project— as projects which will help the City meet its projected
General Plan goals. All action steps identified for this major City goal in the 1995-97 Financial Plan have been
completed, and those identified for this Financial Plan period are the logical progression of steps required to
complete this goal.
Issues We Will Face in Achieving this Goal
There is basic agreement at this time with the North County cities on the need for, and appropriateness of, the
Nacimiento Pipeline project. Other areas of controversy and opposition are likely to develop as the project
proceeds through environmental review. Complete agreement with North County cities on the Salinas Reservoir
project is unlikely to occur short of the City either terminating further action on the project, or modifying the project
such that a portion of its limited yield is shared with North County agencies. Neither of these options relative to the
Salinas project will serve the City in attaining the goal of achieving a long-term water supply capable of meeting
our General Plan goals..
The environmental impact reports (EIR's) for both the Salinas and Nacimiento projects are anticipated to be
released as drafts in April/May 1997, and will be brought before the Council and County Board of Supervisors in
the fall of 1997 for certification. The environmental review process for projects of this nature and magnitude is not
simple and is rarely without controversy, yet it is imperative that Council and the Board of Supervisors remain
focused on the adequacy of the documents themselves and proceed with certification.
Following certification of the EIR for the Salinas project, staff will be requesting a hearing before the State Water
Resources Control Board (SWRCB) for an extension of time for our water rights permit for the expanded capacity
of the Salinas Reservoir. Following certification of the Nacimiento project EIR by the Board of Supervisors, the
participating agencies will then be presented with final reservation agreements for design and construction of the
project. These agreements will likely be the "moment of truth" for the Nacimiento project as the precise levels of
participation by each agency will be determined at that time,as will the financial feasibility of the project.
Issues facing the water reuse project during this financial planning period will be: attaining the permit for a change
in place of use and diversion of treated wastewater from the State Water Resources Control Board; receiving
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approval of a final Engineering Report by the California Department of Health Services; and awarding design and
construction contracts for phase 1 of the project.
ACTION PLAN
Nacimiento Pipeline Project
■ Continue participation in the Nacimiento Participants Advisory Committee. Ongoing
■ Council considers EIR. Fall 97
■ Board of Supervisors certify EIR. 12/97
■ Council approves and executes reservation agreement with County. 6/98
Salinas Reservoir Expansion Project
■ Continue participation on the North County Water Task Force. Ongoing
■ Council certifies project EIR. 12/97
■ Receive water rights permit time extension from the SWRCB. 12/98
Water Reuse Project
■ Award design and engineering contract. 7/97
■ Award phase 1 construction contract. 7/98
■ Complete phase 1 construction. 6/99
RESPONSIBLE DEPARTMENT
■ Utilities will be responsible for all technical analysis, water rights permit processing and consultant and
construction coordination.
■ Administration, City Attorney and Public Works will assist at the appropriate stages of project
development.
■ Finance will assist in developing funding programs and administering any debt financings.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
■ Nacimiento Pipeline Project. As currently envisioned, the design and construction costs for the
Nacimiento project will be initially funded through a County bond issuance and the debt service will be
recovered through the sales of the water. The participation agreements will be such that the participants in
the project will pay for at least the capital component of the project in proportion to their allocation request, .
whether or not they actually use the water (take or pay). The City will therefore incur the cost of
Nacimiento water as an operating program cost starting at approximately the time of completion of the
project (2001). These costs will be funded through a combination of rates and development impact fees.
The current cost estimates for Nacimiento water delivered raw to the City are $786 per acre foot. At the
current 3,380 acre foot per year allocation request, this will translate into an annual operating program
exTense of $2.66 million. Actual costs for the project will continue to be refined; the County and
Nacimiento participants are in the process of reviewing funding options which may minimize the cost
impacts of the project on project participants.
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■ Salinas Reservoir Expansion. Funding for this project was approved in the 1993-95 and 1995-97
Financial Plans. The figures and timelines provided in these budget documents will be revised and
resubmitted as a component of the 1997-99 Financial Plan. The revised figures indicate a capital
improvement plan request of$135,000 for additional study related to the property transfer in 1997-98,
$820,000 for studies and design in 1998-99, and $8 million for construction in 2000-2001. An additional
cost for biological mitigation is estimated at $6.25 million. Existing Utilities administrative staff will
continue to provide management and oversight of this project. Consistent with the Urban Water
Management Plan, prior funding studies, and the City's debt management policies, this project will be
funded through bond proceeds. The annual debt service for this project is estimated at$1.2 million.
■ Water Reuse Project. Funding for this project was approved in the 1995-97 Financial Plan. The funding
and timelines for this project will be revised based on current improved information and will be resubmitted
in the 1997-99 Financial Plan. The revised figures indicate a 1997-99 capital improvement plan request of
$6,300,000 in 1997-98 for construction of phase 1 of the water reuse distribution system and associated
mitigations; and $3,070,000 in 1998-99 for design, construction and mitigation of the phase 2 water reuse
distribution system. Actual construction and phasing will be further developed during design and may be
modified from these projections. Consistent with prior funding strategies, this project is proposed to be
debt financed using the State Revolving fund low-interest loan program. Annual debt service costs for
Phase 1 of this project are estimated at$600,000.
OUTCOME- FINAL WORK PRODUCT
Assured,dependable long-term water supplies that will meet General Plan goals.
In achieving this outcome,staff will continue to work with the County and North County agencies in developing the
Nacimiento and Salinas projects. With consideration of the EIR's for both projects to occur in the Fall 1997, and
execution of final reservation agreements for the Nacimiento project to occur in early 1998, a decision and mon;
definitive direction relative to these projects will be made during this Financial Plan period. The water reuse project
should see completion of design and construction of the phase 1 portion of the project during this Financial Plan.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
STREET AND SIDEWALK MAINTENANCE
OBJECTIVE
Complete an inventory of current street and sidewalk conditions,update the City's Pavement Management Plan as
needed,and continue ongoing maintenance of City streets and sidewalks.
DISCUSSION
Background
In pursuit of an existing Council goal — updating the 1988 Pavement Management Plan — the City Engineer has
purchased computer software, hired Cal Poly intems, and has completed approximately 60% of the data entry
needed to complete the inventory of existing conditions. Based on this work, Public Works v6ll be able to project
total demand for street resurfacing and identify the most cost-effective projects for use of the City's limited funding
resources.
The current sidewalk maintenance program consists of City staff responding to individual isolated sidewalk
problems (including curb and gutters) by grinding, modifying or replacing the damaged facilities. Also, a modest
sum is set aide for hiring contractors to replace sidewalks in heavily-used areas. In addition to these two existing
programs, a 1911 Act sidewalk construction program could be implemented during this financial planning period.
The 1911 Act program would install new sidewalks in areas meeting the criteria previously adopted by the City
Council. An inventory of all areas without sidewalks has already been completed.
Issues We Will Face in Achieving this Goal
In previous years Nvhen this program was in place, public hearings were held wherein testimony was received
concerning the inability of individual property owners to pay assessments, which are the basis of the program. In
some cases,properties were dropped from the program altogether, and in others the City decided to use the General
Fund in-lieu of the needed assessment. Results of the latter led to the program no longer being self- supporting, and
eventually led to its demise during times when the budget was tight. In addition, the passage of Proposition 218
may affect the City's ability to implement this program; fiuther research on this matter will need to be done before
proceeding with this program.
ACTION PLAN
■ Complete inventory of street and sidewalk conditions. 7/97
■ Council considers first 1911 Act project. 9/97
■ Council adopts updated Pavement Management Plan(as needed). 10/97
® Begin pursuit of first-priority pavement management projects. 10/97
■ Undertake general street and sidewalk maintenance projects. Ongoing
RESPONSIBLE DEPARTMENT
Public Works
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FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
City general funds will continue to be programmed each budget year to support pavement management activities.
For pavement overlay and reconstruction, this will cost about $835,000 annually in 1997-99 compared with
$620,000 annually allocated for this purpose in 1995-97. No significant changes to the City's operating programs
are proposed for street and sidewalk maintenance activities, which totaled about $1.3 million in 1996-97. Staff is
proposing a three-year allocation of$75,000 to initiate the 1911 Act program. After three years, the program
should become self sufficient through reimbursements made by participating property owners, assuming a three
year payment program is offered to property owners.
OUTCOME—FINAL WORK PRODUCT
Safe, convenient and attractive access throughout the community by effectively and efficiently maintaining City
streets and pedestrian facilities.
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
FLOOD PROTECTION
OBJECTIVE
Adopt and begin implementing flood management plans for creeks,open channels and storm drainage systems.
DISCUSSION
Background
In 1983,the City adopted its Flood Management Policy(Resolution 5138). Since then the City has:
■ Constructed projects that eliminate "points of restricted capacity". Examples include the construction of
new bridges at Toro Street, Elks Lane and Nipomo Street. Designing a new bridge on Santa Rosa Street
at San Luis Obispo Creek is underway with construction targeted to begin in late Summer, 1997.
■ Required new development projects to be set-back from the edge of creeks and provide on-site flood
protection.
■ Taken advantage of services offered by the California Conservation Corps (CCC) and others to provide
routine creek maintenance.
■ Replaced existing storm drains at select locations to reduce localized flooding.
However, the remaining elements of the 1983 flood management policy cannot be implemented until additional
planning is completed. The Army Corps of Engineers now requires that a new comprehensive flood management
manual be prepared. City staff have distributed an RFP, solicited consultant services, and has negotiated a
contract with a qualified firm to complete the manual. Funding of this work is pending approval by the County
Board of Supervisors acting as the Board of Directors of Zone 9 Flood Control District. Completing this work will
allow updating of the City's flood management policy(the "Pink Book").
While the 1983 flood management policy (and its proposed update) address the needs of the City's major creek
systems, it does not address the remaining storm drainage system (such as catch basins and piped systems). We
propose addressing this need by preparing a second document entitled the Storm Drainage Master Plan. This plan
will map, analyze and identify replacement and maintenance strategies for the City's existing storm drainage
facilities. Since the 1995 floods, many older facilities built in the early 1950's have failed and required emergency
attention, causing unplanned use of City funds. The adoption of a Storm Drainage Master Plan will allow for an
orderly and planned use of City financial resources.
Issues We Will Face in Achieving this Goal
■ Zone 9 funding concerns. Completing all studies and projects to achieve this goal will be very expensive.
Zone 9, our local flood control district, does not have unlimited funding. Traditionally,Zone 9's cash flow
was used for the City's annual creek cleaning program. Nearly all of its reserves will be necessary to
complete the Phase II study required of the City by the Army Corps of Engineers. Funding for construction
projects will therefore be a key issue. In addition, although the City generates about 85%of Zone 9 funds,
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there has been a recent desire of the Zone 9 advisory committee to allocate those funds to non-City portions
of the creek system.
■ Higuera street bridge This project is partially funded by the federal government, but they will only fund
80% of the cheapest construction alternative. Solutions which the City consultant has been directed to
review include options under which all remedial work would take place from inside the structure. This
could be very costly. Any of these options, if chosen, will dramatically impact the amount of the General
Fund contribution to this project.
■ Storm drainage master plan. Besides creeks covered by the flood management policy, most of the City's
properties are served/protected by various piped systems which are nearing or at the end of their useful life.
Some have recently failed and needed emergency funding for replacement; however, the majority will
eventually require repair or replacement, and this will be a major expense. Unless other means of funding
can be identified,the General Fund will be responsible for the entire cost of this program.
ACTION PLAN
■ Begin construction of the Santa Rosa street bridge. 9/97
■ Select Higuera street bridge construction option. 7/98
■ Begin construction of Higuera street bridge. 7/99
R Begin rewriting flood management policy. 9/98
■ Complete flood management policy. 4/99
■ Complete 1995 flood damage repair projects. 11/98
■ Begin preparing storm drainage master plan. 7/97
■ Complete storm drainage master plan. 3/99
RESPONSIBLE DEPARTMENT
Public Works will have the primary responsibility for this project; the natural resources protection program in
Administration will be actively involved in preparing the flood management plan.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
The work needed to accomplish the proposed action plan will be done by a combination of agency staff(City,
County/Zone 9), Cal Poly interns,and consultants as needed. Cost estimates of the various activities follow:
■ 80%of the cost of the Santa Rosa Street Bridge (about$500,000)will be paid for by a federal grant.
i Federal grants will also pay for 80%of the cost of the `low cost alternative" (estimated at$2,000,000) for
the Higuera street bridge project. Costs that exceed the low-cost option will be the City's responsibility.
■ Cost of the studies required by the Corps of Engineers that will enable updating of the City's Flood
Management Policy (the "Pink Book") are estimated at $440,000 with funding coming from the Zone 9
Flood Management District.
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■ The cost of preparing the storm drainage master plan is estimated at$160,000 using the General Fund.
Note: This only represents the cost of updating the Flood Management Policy and adopting a Storm
Drainage Master Plan, which will enable the City to identify multiple projects, costs, priorities and
alternative funding methods. Actual construction ofprojects will be a multi-million dollar program.
OUTCOME—FINAL WORK PRODUCT
By updating the flood management policy and adopting a storm drainage master plan,the City will be able to begin
flood containment projects that will provide higher levels of flood protection and lower insurance costs to property
owners,and reduced community disruption.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
TRANSIT SERVICE
OBJECTIVE
Maintain the current level of service provided by the City's transit system.
DISCUSSION
Background
Funding for the City's transit system has followed a bumpy but upward path since 1992 when the City qualified for
urban status, thus becoming eligible for federal transit funding for both operations and capital on a formula basis.
Simultaneously, an old, highly inadequate Cal-Poly funding agreement was abandoned in favor of one more
equitable to the City based on student ridership. Ridership increased,especially among Cal-Poly students, as routes
were expanded. However, a number of factors then coalesced, creating a high level of funding uncertainty for the
transit system: federal transit funding amounts became highly variable; funding from the State declined due to the
recession; a change in the service provider contract meant the loss of other funding for about two years; and Cal-
Poly could no longer fund its portion of the program based upon ridership. This has resulted in a highly unstable
funding scenario for the City's transit system. The following is a summary of actions currently underway as well
as those planned for the near future:
■ The Public Works Transportation staff is completing an update of the City's Short Range Transit Plan
(SRTP). The SRTP will identify how this Council goal can be pursued within current and future fimding
limits. The SRTP will establish service and revenue options in the event that funding becomes more
limited or more plentiful.
■ Public Works has advertised a Request for Proposals (RFP) for a new transit service contract beginning in
July, 1997. As part of preparing the RFP, staff has evaluated staffing and service options for reducing
the operating cost of the system.
■ The City staff and Council representatives are working with Cal Poly officials to produce a multi-year
agreement that establishes the University's funding contribution to the City's transit system.
■ Consistent with Council direction, the staff is working on expanding television advertising of the City's
transit system in exchange for allowing print advertisements on the exterior of the buses. An evaluation of
the benefits of this exchange will be considered by the Council.
■ In the future, additional adjustments to transit fares MU be needed to support current service levels; these
changes will depend on the availability of funding from other sources and on desired service levels.
Issues We Will Face in Achieving this Goal
We do not anticipate significant difficulties at this time in funding current transit system service levels for 1997-98.
In the long-term, however, unless we are successful in either securing new revenue sources, increasing ridership, or
identifying ways of significantly reducing operating costs, it will not be possible to achieve this goal unless there is
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direct General Fund support of this enterprise operation. This would be a major change in the City's fiscal policies,
and very difficult to achieve under current fiscal constraints.
ACTION PLAN
■ Complete advertising agreement with private vendors. 4/97
■ Execute funding agreement with Cal Poly. 6/97
■ Execute agreement with transit vendor. 6/97
■ Complete short range transit plan update. 7/97
■ Council evaluates results from television advertising. 3/98
■ Council considers transit fare increases. As Needed
RESPONSIBLE DEPARTMENT
Public Works
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Approximately$1.3 million per year(1997 equivalent)will be needed to operate the City's transit system at current
service levels (depending on the results of the current transit service RFP process). State and federal funding and
transit fares(at current levels)should cover these costs during 1997-98. However,federal funding levels for 1998-
99 are unknown. Current staff resources will continue to oversee the operations of the transit system and be
responsible for the system's financial planning and management.
OUTCOME—FINAL WORK PRODUCT
Continued transit service at current service levels;if existing funding sources are not available to do this,then
service level reductions,other cost reduction options or fare increases will have to be considered.
- 12-
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
PARKING SYSTEM IMPROVEMENTS
OBJECTIVE
Begin building the Marsh Street parking garage expansion.
DISCUSSION
Background
■ A consultant has been hired to prepare a draft and final EIR. Key impact areas include circulation and
traffic, historic/cultural resources, and aesthetics. No property purchase offers will be made until the
environmental review process has been completed.
■ The staff is negotiating the purchase of air rights over the near-by the post office's rear parking lot. Staff
is also working with owners of adjacent property (San Luis Medical Clinic) concerning the purchase of the
small surface parking area adjoining the City's property. The success of these neg• tions will determine
the ultimate size,parking capacity and cost of this garage expansion project.
■ After the EIR and property negotiations with the U.S. Postal Service and San Luis Medical Clinic are
completed, an architect will be hired to prepare construction plans and specifications. The design will then
be reviewed by City commissions,the project advertised,and a construction contract awarded.
Issues We Will Face in Achieving this Goal
■ As far as we know,the U.S.Postal Service has never before negotiated an air space agreement with another
agency. Because of this, negotiations may be more complex and time-consuming than we might otherwise
expect.
■ Gaining control of the San Luis Medical Clinic parking lot may require the use of eminent domain.
■ The environmental consequences of the expanded garage have not yet been identified.
The outcomes in trying to resolve any of these issues may result in significant delays in going forward with this
project,or in not proceeding at all.
ACTION PLAN
■ Certify final EIR 8/97
■ Complete negotiations with the U.S.Postal Service
and San Luis Medical Clinic to purchase land/air rights. 4/98
■ Complete plans and specifications;advertise for bids. 2/99
■ Begin construction. 6/99
- 13 -
RESPONSIBLE DEPARTMENT
■ Public Works. Managing project planning and construction.
■ Finance. Implementing project financing.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOALOUTCOME
$765,000 has been approved for preparing the EIR, land appraisals, and concept designs. An additional $3.9
million is needed for construction and construction management, and assumes the use of the post office's air rights
to enable the largest parking capacity. The parking fund will provide the necessary financial resources. It is likely
that this capital project will be funded through the sale of bonds. Adequate resources already exist in the parking
fund to support these planned debt service costs. Public Works staff will manage the hiring of an architect to
design and prepare plans and specifications, and provide operating support for the expanded garage structure.
Existing finance staff resources will administer any project financings;any costs for financial advisor, bond counsel
and other bond issuance costs will be funded through the bond proceeds.
OUTCOME- FINAL WORK PRODUCT
Expanding parking spaces in this facility will improve community access to business,commercial,governmental,
cultural and recreational activities in the downtown.
- 14-
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
YOUTH ATHLETIC FIELDS
OBJECTIVE
Participate with Cal Poly as a partner in developing a sports facilities complex, subject to resolving funding, use,
neighborhood and environmental concerns.
DISCUSSION
Background
The General Plan parks and recreation element/master plan identifies youth athletic fields as the number one unmet
need for facilities. Accordingly, the Council authorized funding in the 1995-97 budget to improve the existing
athletic fields in the City.
Even though the condition of existing playing fields has been improved, a shortage of six still exists based on
current use and indicated need.
The Cal Poly At Department has proposed a partnership between athletics,the Associated Students (ASI) and
the City to build six to eight multi-use athletic fields. If the City were to become a partner, the fields would be
made available to an extent that they would meet existing and projected needs. To participate, Cal Poly has
requested$3 million of the$9 million project cost from the City.
The Cal Poly complex contains three soccer fields, three soccer/softball/youth baseball fields, a softball stadium
seating 300,and a baseball stadium seating 600. The entire complex will be lighted for night play.
Issues We Will Face in Achieving this Goal
Before the City can agree to be a partner in the project, several issues must be resolved: the City's ability to fund
the project without adversely affecting other City programs; assurance that we will have guaranteed access to the
fields;and mitigation of environmental and neighborhood concerns.
At what level will the City be able to financially participate?
This largely depends on the City's level of participation in the project. As summarized in the table below, which
assumes the City participates at the requested $3 million level, with annual debt service payments to Cal Poly for
this share of about $300,000 for the next fifteen years, there is sufficient funding for the first two years of the
project. Longer-term solutions will need to be resolved in negotiations with Cal Poly.
In summary, there are potential offsetting resources in 1997-99 that are $421,000 greater than project costs.
However,in the longer term,there is an estimated annual shortfall of about$50,000.
While the following summary identifies eight distinct sources for funding this obligation, it is important to note that
it«•ill be the General Fund as a whole that will be obligated to make debt service reimbursement payments to Cal
Poly.
- 15 -
Summary o Estimated pro'ect Funding Sources
t997-98 t 998-99 Long-Term
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au Y'.a .Jx. .>:'•>i`:}:c;:Av:.}:ti:oJ:..:::.::... .. .+ ,.c:R.??ii;iE::i;.',.: ,:...,,.:,
:..,.y,:.:n .,C....?L,.}.... ..,S.J' .. .?. 3{.
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�..:.:..,@,,v;?• .f3i.i:,. .,,::... :..$.:....a::: 'r:::•.::.}}:i:?,,:.,i:,..,..':i,;:.:,..,:nY„::?.: :';:::a;:.::Q.J: $i„�':.r.�<.}:.r.;f:%,it...;;.,.:
Citv Partici ation
1. Current funding for athletic field projects 100,000 100 000 100,000
2. Re-allocated tourism funding 50,000 50,000 50,000
3. Taylor field finding 1996-9 100,000
4. Prior years state grant 100,000
Other A2encv and Community Participation
5. School district waiver of existing fees 32,000 32,000 32,000
6. Youthsports organizations 25,000 25,000 25,000
7. Tournament revenue 20,000
8. Adultsports 20,000
Total Funding Available 407,000 207,000 247,000
Annual Pro'ect Cost 150,000 300,000 300,000
BALANCE I S257,0001 $1649000 $53,000
Explanation of Sources
1. Current funding of athletic field projects. $100,000 has been allocated in each of the past two years for
field improvement projects. Asa result, existing fields have been upgraded. The next project is to address
the need for more fields. If there was not a Cal Poly project, staff would recommend at least continuing
this level of ongoing commitment into the future to develop more fields at other locations. The Cal Poly
project develops the most fields in a timely and cost effective manner.
2. Re-allocated tourism funding. When staff first began to consider the Cal Poly sports fields project, an
increase in the transient occupancy tax (TOT) was thought to be a top alternative in terms of a needed
funding source. Indeed, the Tourism Council was among the first to be made aware of the project by Cal
Poly,and one of the first community entities to support the project, largely due to its potential for overnight
visitor attraction. Several organizations which directly or indirectly benefit from the hospitality industry
are represented on the Tourism Council, including the Chamber of Commerce, Visitors and Convention
Bureau (VCB), Downtown Business Improvement Association (BIA), Promotional Coordinating
Committee(PCC), and representatives from the hotel and restaurant industry.
For example, an increase of one-half percent in the TOT would generate approximately$150,000 annually
which, if combined with other available City funds and proposed community resources, would generate the
$300,000 in annual debt service needed to finance the requested $3 million project share. The passage of
Proposition 218,however,has rendered a TOT increase unfeasible—at least in the time-frame of the initial
years of the proposed project: the soonest such an increase could be submitted for voter approval is
November of 1998.
Although smaller in scope, some investment from tourism-related resources is not only possible, but
appropriate,given that success in funding the project can only be achieved through a partnership involving
the potential beneficiaries. Because it is not possible—at least in the short-term— for the tourism industry
to participate using new TOT resources,staff is recommending a reinvestment of funds already allocated to
tourism promotion as follows:
e VCB contract. In 1995-96, the Council agreed to begin allocating funds to the VCB based on a
contract formula of 3.5%of TOT, increasing the VCB's funding beyond the staff recommendation
- 16-
by over $26,000 annually (from $55,300 to $81,700). City staff indicated at the time that the
formula was set informally by participating cities when the VCB was initially established, and did
not reflect proportionate benefit. Additionally, staff did not recommend (especially in uncertain
fiscal times) establishing a rigid, "formula" driven funding policy. Rather, decisions to fund
programs should be based on demonstrated needs, and cost/revenue analysis. At the present time,
governmental funding composes the largest proportion of VCB revenues, and the City of San Luis
Obispo (with approximately 1,800 rooms) is the largest government contributor, even though the
VCB's advertising is more general to the entire County. For example, the City of Pismo Beach
(approximately 1,900 rooms) makes no contribution to the VCB; and the City of Morro Bay
(approximately 1,000 rooms)contributes$33,000 annually. It should also be noted that in order to
retain the 3.5%formula,the VCB is requesting an added$10,000 for the coming year.
If the City were to return to the 1995-96 base level VCB contract, adjusted by the annual cost of
living increases over the 1995-97 and 1997-99 Financial Plans, approximately $25,000 annually
could be reinvested in the sports fields project.
■ Enhanced promotional fund. In 1993, in response to concerns that raising the TOT from 9%to
10%might diminish tourism,the Council began allocating$50,000 to the PCC annually to support
an expanded marketing program directed toward enhancing "off-season" tourism. These funds
became known as the "enhanced promotional fund," and were used as "seed money" to support
several innovations, including the Film Festival, Decemberfest, Highway 101 entry signs, Mardi
Gras barricades, an enhanced "fulfillment" packet, and a pilot program for expanded hours at the
Visitors Center. If one-half of these funds were retained for the enhanced fulfillment packets and
added Visitors Center hours, then the balance of $25,000 could be invested in the sports fields
project as ongoing"enhanced"promotional programs.
■ PCC position. At its March 25, 1997 meeting,the PCC considered the VCB's funding request for
1997-99. Once again the VCB requested an amount equal to 3.5%of the TOT, which is $91,700,
an increase of$10,000 over the prior fiscal year. Although informed of staff's recommendation to
reallocate part of the VCB funding to the athletic fields improvements, the PCC felt that the funds
would be better spent in the promotional activities of the VCB and voted to recommend to the
Council approving the VCB request for $91,700. The PCC is also aware of the staff
recommendation to reallocate $25,000 of the enhanced promotional fund to the athletic fields
improvements and is strongly opposed to this recommendation. Although acknowledging that the
improvements would likely enhance tourism, the PCC feels that these funds offer important
opportunities to provide seed money to new events or finance innovative promotional efforts and
should remain available for that purpose.
■ Projected added revenues per UCSB study. In late January, community proponents of the
project submitted a report prepared by the UCSB Economic Forecast Project which estimated that
the project would generate enhanced revenue of approximately$170,000 annually. While staff has
no argument with the estimate, it is recommended that these projected revenues not be considered
as a funding source for debt retirement for the following reasons: (1) such revenues can only be
considered projections at this point,and thus are not certain; (2)if such revenues do result from the
project, they will not be received for several years (after the project is constructed and fully
operational);and(3)if"profit"is to be derived from the project,it should accrue to the community
as a whole,with its use determined by the Council. One such possible use would be to increase the
VCB contract,the Enhanced Promotional Fund,or other tourism promotion efforts.
- 17-
Conclusion. While we can assume that the VCB and PCC have made good use of these added resources,
the central question before us is this: would investing the funds in the sports fields project be a more
effective investment of limited tourism resources — resources which should play at least some role in
supporting the project—particularly given the project's capacity to generate additional tourism dollars that
can be re-invested in tourism-generated activities?
3. Taylor field. The 1996-97 athletic field development project was to have been a renovation of the
Taylor Field on the old San Luis Junior High School campus. The City was going to split the cost of the
renovation with the San Luis Coastal Unified School District. Internal issues at the district have caused the
project to be delayed for at least one year. The district has indicated that once these issues are resolved,
they will fully fund the project.
4. Prior years state grant. The City received a state grant for park development from a 1986 park bond.
The grant was originally to be used for another project,but the delay in receiving the funds prevented that,
and the projects were completed with other resources. That funding is now available for this project.
5. School district waiver of existing fees. While the district does not wish to be a partner in the Cal Poly
project, they have tentatively agreed to waive two existing fees charged by them to the City: $25,000 for
the rental of facilities related to after-school programs; and $7,000 for water use at C. L. Smith School.
These waivers will be ongoing.
6. Youth sports organizations. All of the youth sports organizations in San Luis Obispo have agreed to
contribute $7 per player per year for the Cal Poly project. Enrollment will surpass 3,500 this year,
resulting in a conservative estimate of$25,000 annually from this source.
7. Tournament revenue. Tournaments that bring in out-of-town teams will be a part of the program
activities on these fields. Charging all out-of-City teams a non-resident fee, and dedicating a portion of the
snack bar revenue to the City's share of the project funding, is estimated to generate $20,000 after the
fields are constructed.
8. Adult sports. Discussions with the other project partners indicate that there will be time available for
City adult sports leagues. Based on 1,100 currently registered adult players in three league seasons,
charging the adult players$7 per person per league season should generate about$20,000 annually.
How can we assure access to the fields?
Cal Poly has proposed a three-agency partnership between athletics, the City, and ASI. Assuming the financial
issues can be resolved, an 'Iron clad" agreement will need to be developed between the partners that guarantees
each a fair,proportionate use of the facilities.
Staff will undertake developing such an agreement prior to submitting the project to the Council for final approval.
There will also be sub-components to the agreement relating to environmental and neighborhood mitigations.
How can we assure appropriate mitigation of on-site environmental issues?
Cal Poly has requested that the Biological Sciences Department assist in developing an on-site mitigation plan. Dr.
V.L. Holland, chair of the department, will appoint a committee of faculty and staff members to accomplish this
task. The City's Natural Resource Manager will also be a member of this committee and represent the City's
interests. Upon the successful completion of this task, hopefully the staff will be able to present the Council with
an on-site mitigation plan that has input from the City and the concurrence of the Cal Poly Biological Sciences
- 18-
Department. City participation in the project, as set forth in the use agreement, will be conditional upon approval
of this plan by our other partners.
How can we address neighborhood concerns?
The major issues center around the effects that noise, light and traffic from the sports fields will have on affected
neighborhoods. While there are common solutions to the issues,they will be more effective if they are crafted on a
neighborhood by neighborhood basis. An outreach effort to these neighborhoods is in progress. Issues will be
raised and mitigations discussed in neighborhood meetings.
One such meeting with residents of the Bishop's Peak area took place on March 31. Responding to a request of
neighborhood members, staff sent meeting notices to each residence in the area. Those in attendance raised the
issue with the project EIR as it relates to the effects that noise from the project will have on the Bishop's Peak
neighborhoods. They agreed that a study was needed to know what the effects would be on their neighborhoods.
By consensus of those in attendance,it was agreed that the study should include:
■ Testing conducted by a qualified acoustic consultant or sound engineer.
■ Measuring ambient noise levels from appropriate Bishop's Peak neighborhood areas, broken down to hours
when stadiums are most likely to be used(evening hours are the most critical).
■ Testing levels of predicted stadium noise in neighborhoods including the effect of hillside receiver locations.
■ Quantifying crowd noise levels and public address system noise levels.
Again, by consensus of those in attendance, it was agreed that their response would be contingent on the results of
these tests. It was further agreed that at least the following mitigation measures should be included:
■ No public address systems will allowed on the playing fields (but allowed in the stadiums).
■ Activities at the complex will be limited to athletic events.
M Reasonable stadium hours will be established.
■ Limits on noise levels above the ambient neighborhood levels will be agreed to. A plan to regularly monitor
the levels will be implemented to insure compliance.
■ A review of the impacts on neighborhood property values will be undertaken.
■ Any committee established to review the project will include neighborhood representation.
■ Sound system design measures,as noted in the EIR,that reduce noise levels should be fully explained.
There was further consensus among the neighbors that the project should be put to a vote of the public.
Staff agreed to take the results of this neighborhood meeting to the Council, and to begin implementing the testing
and mitigation aspects. However, staff does not support putting the project to a vote of the public. While there
may be merit to this approach, it is not feasible given the project time lines. We believe that similar results in
mitigating impacts can be achieved by working closely with affected areas,and addressing their concems.
ACTION PLAN
■ City receives input on neighborhood concerns and mitigation measures. 4/97
■ City and Cal Poly agree upon mitigation plan. 6/97
Y Staff finalizes the necessary agreements. 7/97
■ Council approves the City's participation in the project. 8/97
■ Construction begins. 10/97
■ City begins funding the project. 1/98
■ Construction is completed and City participation begins. 9/98
- 19 -
RESPONSIBLE DEPARTMENT
The Parks and Recreation will be responsible for the overall coordination of the project with assistance from
Finance,Public Works, Community Development,Administration,and the City Attorney's Office.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
As previously noted, $400,000 from the General Fund and $214,000 from other sources will be needed to finance
this project during the first two years. In future years, $150,000 would come from the General Fund and $97,000
from other sources. The available funding represents a potential annual shortfall of$50,000 on an ongoing basis
thereafter. This shortfall will have to be addressed in the negotiations with Cal Poly.
Once play begins on the fields, Parks &Recreation will coordinate use by the local sports organizations. This can
be accomplished using existing staff resources.
OUTCOME-FINAL WORK PRODUCT
Expanded recreational opportunities for the City's youth.
A major facility need, as identified in the Parks and Recreation element,will be addressed upon completion of this
project. Cal Poly will assume all ongoing field maintenance costs,which will provide long-term cost savings to the
City.
-20-
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
PARKS AND RECREATION ELEMENT IMPLEMENTATION
OBJECTIVE
Continue implementing the parks and recreation element of the General Plan, emphasizing neighborhood parks, at-
risk youth,youth, and seniors.
DISCUSSION
Background. In May of 1995, the Council adopted a comprehensive revision to the General Plan Parks and
Recreation Element/Master Plan (Element). The Element provides for a parks and recreation system that identifies
and addresses community needs. A key portion of the document is the identification of unmet needs. Included are:
Facilities
■ Youth athletic fields for practice,games, and tournaments
■ Gymnasiums
■ Neighborhood parks
Recreation activities
■ Prevention and intervention programs
■ Increased programs for children and teens
■ Senior citizen programs
Issues we will face in achieving this goal. Additional parks and recreation services clearly are desired by the
community; however, given the fiscal constraints of this budget period, this goal will need to be addressed using
existing resources.
Neighborhood park needs include:
■ renovation of Mitchell Park
■ park for the Las Praderas area
■ identification of a park site in the area south/west of Foothill Boulevard and Chon o Street
The issue for park development will be available funding. The likely source of revenue for Mitchell Park are park
in-lieu fees, specifically in-fill housing projects. Funding exists for Las Praderas Park, but the site is on San Luis
Creek and must be stabilized prior to any construction. Identification of a Foothill-area site will be difficult. There
are potential locations,but neighborhood consensus will be necessary. This may be difficult to achieve as Foothill
Boulevard itself separates this area into two parts.
It is unlikely that significant funding will be available for new recreation programs. Therefore, creating a non-
profit foundation with a recreation mission will be critical to addressing the need for new recreation activities. A
foundation will let the City apply for and receive program grants. It will also allow program participants to keep
activity fees low through fundraising and volunteer service.
-21 -
ACTION PLAN
■ Staff continues implementation of at-risk recreation activities. 7/97
■ Staff continues to award scholarships to at-risk children for participation.
in all recreation activities without revenue reimbursement. 7/97
■ Board of Directors is formed for the]?arks and Recreation Foundation. 7/97
■ Determine feasibility of a park site in the Las Praderas neighborhood. 10/97
a Start site selection process for a Foothill-area park. 11/97
■ Contract recreation instructors agree to add at-risk scholarship students
to their programs. 1/98
■ Foundation incorporates. 2/98
■ Depending on funding,start Mitchell Park playground improvements. 3/98
■ Staff participates with the Mayor's Task Force on Youth in developing
■ new,grant-funded,at-risk programs for the summer. 5/98
■ Site is selected for a Foothill-area park. Funding for the project will
be included in the 1999-2001 Budget. 11/98
RESPONSIBLE DEPARTMENT
Parks and Recreation will be responsible for the implementation of this objective, with the exception of capital
improvement plan projects, which will be managed by the Engineering Division of the Public Works Department
with input from Parks&Recreation .
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Continued implementation of the Parks and Recreation Element is the primary mission of the Parks and Recreation
Department. The goal can be achieved within existing resources. Funding for the Las Praderas Park Project has
been previously approved. The Mitchell Park improvement project was originally approved in 1994. It has been
postponed due to lack of funding from park in-lieu fees. Once the funding is available,the project will commence.
The project cost is $130,000. Depending on other priorities, this amount should be available by the end of 1997-
98.
OUTCOME -FINAL WORK PRODUCT
Continued implementation of the Parks and Recreation Element,which will allow the City to satisfy identified needs
throughout the community.
-22-
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
AIRPORT AREA ANNEXATION
OBJECTIVE
Prepare the pre-requisite specific plan and related infrastructure master plans in order to implement the General
Plan goal of annexing the airport area to the City.
DISCUSSION
Background
In 1994 the City adopted an update to the Land Use Element of the General Plan which stated that the City would
actively pursue annexation of the Airport Area by 1995. The City did actively pursue this goal; however, the
complexity created by the number of property owners and agencies involved in producing the pre-requisite specific
plan and completing the annexation made accomplishing the goal problematic. In December of 1995 the Council
directed staff to take a lead role in achieving the goal by directing staff to prepare a request for proposals (RFP) for
consultant preparation of the specific plan and to prepare a funding strategy. In March 1997,the staff submitted an
RFP and a funding strategy for Council approval. The Council approved these and directed staff to release the
RFP.
Issues We Will Face in Achieving this Goal
The Council has resolved issues of specific plan funding and content. Several other issues can be anticipated as the
specific plan is prepared and as it is reviewed for adoption.
■ Long-term seater supply. The issue of obtaining a long-term water supply remains to be completely
resolved. The City has several projects in progress that would provide supplemental sources of water to
adequately serve all the City's needs at buildout. The City's adopted policy regarding water supply directs
that the City continue to pursue supplemental sources for buildout until they have been secured
■ Property owner support. An ultimate implementation concern is that some property owners will not
support annexation once the specific plan has been completed. This has always been a risk and has been
well-discussed in previous Council consideration of the strategy for preparing the specific plan. The
specific plan will provide detailed information on the design and costs of infrastructure necessary to service
the airport area. It will also provide additional information regarding land uses that will be preferred and
possible in the area. This information will allow the City and property owners to make informed decisions
regarding the effect of annexation, especially with regard to the cost of services and how they will be paid
for. Preliminary analyses prepared by staff and Angus McDonald Associates indicate that the annexation .
will be a net fiscal benefit to the City. A County study concluded that annexation to the City was the best
fiscal alternative for the County.
Property owners will be able to more accurately assess the costs and benefits for their individual properties
once the specific plan is completed. General studies have shown that City services will allow for more
intensive development of a property than would be possible with on-site and rural type services, and that
the costs for a County agency to provide levels of services equivalent to those that can be provided by the
-23 -
City would be significantly more. It is therefore expected that annexation will have a positive effect on
most property owners, and that they will ultimately support it.
■ Environmental issues. These .will be analyzed as a part of the planning process. Although the
environmental impact report(EIR) for the update of the land use and circulation elements which addressed
future development of the airport area was certified,the location and installation of infrastructure will raise
additional issues. The contamination of soils on the Unocal site is also an issue. The EIR for the specific
plan will address these issues.
ACTION PLAN
■ Hold pre-proposal conference April 3, 1997
■ Receive proposals May 15, 1997
■ Award contract; start work July/August 1997
■ Hold community workshop September 1997
■ Complete administrative draft specific plan November 1997
■ Complete administrative draft EIR December 1997
■ Begin public review of draft specific plan and EIR February 1998
■ Hold community workshop March 1998
■ Complete EIR comment period April 1998
■ Respond to EIR comments May 1998
■ Planning Commission holds public hearings and makes recommendations July 1998
■ Council holds public hearings and adopts specific plan September 1998
■ LAFCO approves annexation April 1999
RESPONSIBLE DEPARTMENTS
■ Community Development Provide overall project management and consultant supervision, prepare land
use and development standards; direct and guide consultant preparation of urban design component of
specific plan.
■ Public Works. Supervise consultant preparation of master storm drainage plan and circulation component
of specific plan;review specific plan drafts.
■ Utilities. Supervise consultant preparation of water and wastewater master plans; review specific plan
drafts.
■ Finance. Supervise consultant preparation of public facilities financing component of the specific plan
and infrastructure master plans;review specific plan drafts;update fiscal impact analysis.
■ Administration. Provide overall project oversight and coordination; Natural Resources Manager:
contribute to preparing open space and resource protection standards, open space in-lieu fee program, and
reviewing specific plan drafts; Economic Development Manager: coordinate property owner liaison; review
specific plan drafts.
■ Police. Review specific plan drafts.
o Fire Review specific plan drafts and hazardous materials issues.
-24-
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
It has been estimated that preparing the specific plan,urban design plan, related infrastructure master planning, and
EIR could cost up to $545,000. A funding program for these costs has been approved by the Council summarized
as follows:
Airport City-Wide
Funding Source Components Components TOTAL
General Fund-
1996 Economic Development Program 19,000 $ 19,000
Water Fund 70,000 $30,000 $100,000
Sewer Fund 70,000 $30,000 $100,000
CDBG Funding-City share 121,000 $121,000
CDBG Funding-County share 50,000 50,000
Property Owner Funding 155,000 $155,000
Total $485,0001 $60,000 $545,000
While significant staff resources will be committed to this work effort,no supplemental funding beyond that already
approved by the.Council is required.
OUTCOME- FINAL WORK PRODUCT
In cooperation with City staff,the consultant will prepare the following documents:
■ Specific plan for the airport area
■ Urban design plan for the airport area
Is City-wide water master plan
■ City-wide wastewater master plan
■ Master circulation plan for the Margarita and airport areas
■ Master storm drainage plan for the Margarita and airport areas
■ Public facilities financing plan for infrastructure components
■ An environmental impact report for the Margarita and airport area specific plans
The result will be completing the planning pre-requisite,allowing annexation of the airport area to the City.
-25 -
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
MADONNA PLAZA AND CENTRAL COAST MALL REVITALIZATION
OBJECTIVE
Proactively work to revitalize Madonna Plaza and Central Coast Mall.
DISCUSSION
Background. The General Plan designates this area as a preferred location for regional-serving retail uses. The
Central Coast Mall has been performing at a very substandard level for several years. The Madonna Plaza is
also performing at less than an optimal level, with an outdated and inefficient design. Revitalizing these two
centers has been an objective of the City for some time. These properties have high vacancy rates and are not
producing the sales tax revenue expected. As we continue to see sales tax leakages out of the City, it is important
for the fiscal health of the City to aid in revitalizing these two malls. Because the City does not own these two
properties, and because the prospects for redevelopment agency investments in them is unlikely, the recommended
City role is to encourage private sector redevelopment efforts,and to assist in coordinating a vision for this effort.
Issues we will face in achieving this goal. These two properties have complex ownership issues. The Central
Coast Mall is actually comprised of three owners: Gottschalks, Embassy Suites and Mutual of New York. Any
redesign and re-tenanting has to be agreed upon by all parties due to the provisions of an existing reciprocal
easement agreement. Any redesign or new construction also has to be able to demonstrate to the owners that they
will be able to recoup the costs in new tenant rents. The land under Madonna Plaza is privately held and leased to
Heitman Capital Management, a real estate pension fund portfolio manager. Most of the buildings in Madonna
Plaza are owned by Heitman. As Madonna Plaza is one small property in their much larger holdings, interest in
either redesigning or selling is not known at this time. The decision will be based on overall portfolio management
goals and the expected lease rates as a result of any demolition, redesign and re-tenanting of the property. Both of
these properties are poorly designed and do not appeal to tenants in their current configuration.
ACTION STEPS
■ Work to assist owners/developers in new tenant recruitment. Ongoing
Y Create a development review team specific to this area to identify project issues
and permitting requirements. 7/97
■ Estimate off-site improvement costs that would encumber any net new construction. 12/97
■ Re-evaluate the feasibility of redevelopment financing based on recent
changes in State law. 12/97
■ Explore financing/investment strategies to create an incentive to redevelop. 2/98
■ Coordinate site plans between owners/developers to assure compatibility of
the two sites and potentially the Dalidio site. Upon availability
■ Evaluate opportunities for establishing appropriate design standards before an
official application to assure prompt and timely review by appropriate advisory bodies. 3/98
E Coordinate the pre-development and development process with a goal of
processing applications as quickly as possible. Upon availability
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RESPONSIBLE DEPARTMENT
The economic development program within Administration will be responsible for facilitating and coordinating
meetings with owners/developers/users, with assistance from the Community Development. Community
Development will be also be responsible for processing the applications, and Finance will assist in developing the
financing/investment strategy.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Funding presently exists in the program for relatively small,but needed consultant assistance. Depending upon the
ultimate scope of the effort, additional funding may be needed for implementing any proposed redevelopment
financing or incentive agreement. The Economic Development Manager will coordinate a multi-department team.
OUTCOME- FINAL WORK PRODUCT
■ Approaches and incentives to offer the property owners to redevelop these centers; a process to fast track
the development review and permitting process;and agreements with owners to redevelop the property.
■ An improved and producing asset for the City,and elimination of existing under-performing properties.
■ Full utilization of these properties for the benefit of San Luis Obispo area shoppers, and the City's
economic and fiscal betterment.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
ECONOMIC DEVELOPMENT
OBJECTIVE
Continue implementing the economic development program, including focused business recruitment efforts
consistent with the results of the targeted industry cluster study.
DISCUSSION
Background
The City's full-time economic development program will be entering into its second year, and moving from a start-
up mode to implementation. The following summarizes proposed program activities for 1997-99:
Implementation of ongoing program. The economic development program will continue to concentrate on the
major areas as identified by the Council in the 1993-95 and 1995-97 Financial Plans,which include:
■ Local business retention and expansion.
■ In-fill site/building space location assistance.
■ Targeted business recruitment/cluster study completion.
■ Business visitation and networking.
■ Economic development marketing,including:
- Data development/data-oriented responses.
- Property inventory data base completion/maintenance.
- Contact management data-base system.
- Collateral marketing materials development.
■ Retail assistance (downtown,Madonna Road shopping area,Dalidio project,auto center).
■ Tourism promotion participation,including Tourism Council.
■ Airport area annexation property owner liaison.
■ Permit processing assistance/business customer satisfaction.
Added economic development efforts. New areas of emphasis will be undertaken, particularly in the business
recruitment component as a result of the work of the Targeted Industry Cluster Committee. The Committee should
be completing their work in July 1997, with recommendations to the Council to follow. Council action on their
recommendations will be followed by implementing a business plan/marketing strategy to promote the business
infrastructure/partnerships needed by the identified industry clusters, and to actively recruit new businesses.
Additionally,a new major City goal to"proactively work to revitalize Madonna Plaza and Central Coast Mall"will
be undertaken,with a considerable amount of staff support provided under this program.
Issues We Will Face in Achieving this Goal
Issues we will face in achieving the industrial/office job goals include lack of available industrial buildings, high
land costs, lack of availability of fully-developed sites, some perceived job-specific labor shortages, housing,
limited air service to selected cities, water supply and cost, and future land inventory. Retail goals may be
impacted by other communities' retail growth and fractured ownership/direction of under-performing areas,
especially relative to the Madonna Plaza and Central Coast Mall. Other issues will be divergent community beliefs
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and goals,and a relatively small-scale economic development program in comparison to some other cities. Related
to this, the absence of redevelopment funds limits the City's ability to pro-actively encourage certain economic
development undertakings.
ACTION STEPS
■ Continue implementing the current economic development program. Ongoing
Targeted Business Recruitment Strategy
■ Submit Targeted Industry Cluster Committee recommendations to the Council. 7/97
■ Implement business recruitment marketing program to meet the
targeted industry cluster goals adopted by the Council. 10/97
Madonna Plaza and Central Coast Mall Revitalization
■ Assist in recruiting developers/tenants as appropriate. Ongoing
■ Re-evaluate feasibility of establishing redevelopment financing. 12/97
■ Create financing/return on investment strategy. 2/98
■ Establish/clarify design standards to expedite processing. 3/98
■ Coordinate site plans between properties. Upon Availability
RESPONSIBLE DEPARTMENT
Administration will provide overall policy direction, and the Economic Development Manager will be the lead staff
person with assistance from other departments as needed. Community Development will process any development
applications,once received.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Funds are available within the existing economic development program budget to support the ongoing activities. In
addition, by re-allocating current economic development program resources budgeted in 1995-97, an enhanced
marketing initiative can be supported in promoting existing business recruitment efforts as well as new targeted
efforts following completion and approval of the targeted industry cluster study. Funding to encourage the
revitalization of the malls is undetermined at this time, and requires further study.
OUTCOME-FINAL WORK PRODUCT
A comprehensive economic development program that serves the short-term fiscal goals of the City as well as
positions the community for long-term economic well being.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
NEIGHBORHOOD PRESERVATION
OBJECTIVE
Continue neighborhood preservation efforts relating to noise, traffic and maintenance; and continue to support
efforts encouraging additional"on-campus"student housing.
DISCUSSION
Background. The Office of Neighborhood Services was established at the beginning of the 1995-97 Financial Plan
period to more completely address issues surrounding neighborhoods and their relationship to City government,
along with development of strategies that could facilitate neighborhoods becoming more self- sufficient. Various
key objectives were identified, which included providing a central information source for both internal and external
use,identifying successful existing neighborhood programs,and generally supporting neighborhood wellness.
The continuing need for neighborhood services is driven by cyclical change in population, whether it be the
movement of families in and out of neighborhood housing or the transient nature of students attending Cal Poly or
Cuesta College. The change of players in the neighborhoods requires frequent public education and code
enforcement efforts to achieve harmony and self-sufficiency.
Participation in providing additional on-campus student housing at Cal Poly is continuing within the content of the
recently established campus/community advisory committee. Two Council members are the official City
representatives on that committee, with Community Development Planning Division staff support. It is anticipated
that construction of new housing will occur during the current budget cycle. Providing on-campus housing at
Cuesta College is more problematic, as none now exists and there is little precedent within the community college .
system for providing that amenity. Staff will continue efforts at finding a means to satisfy the housing needs of
Cuesta students,but definitive results within this budget period are impossible to predict.
Issues we will face in achieving this goal. In a broad view, the problems associated with achieving the objective
revolve around transient segments of the population. The city is approximately 52% rental with two institutions of
higher education contributing to a dynamic and cyclical group of residents that changes every three to four years.
Ongoing education programs are vital to establishing harmony and coping strategies between the more stable (non-
cyclical)population group and the transient rental community.
ACTION PLAN
■ Establish an annual City-funded educational television commercial campaign 8/97
■ Begin Human Relations Commission Neighborhood Communications program 6/97
M Expand current Working to Improve Neighborhoods(WIN)program 1/98
a Assess program strategies and benefit with neighborhood group leaders 7/98
RESPONSIBLE DEPARTMENT
a The Office of Neighborhood Services in the Community Development Department will be responsible for
implementing and monitoring the activities associated with accomplishing this goal.
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■ The Police, Fire, Public Works, and Parks & Recreation Departments, along with the City Attorney's
Office, will assist in crucial public education programs and code enforcement efforts under the WIN
program.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
The Neighborhood Services Manager will coordinate the activities undertaken to achieve program goals and
manage the code enforcement operation necessary to incidents of blight. Building inspection staff will provide
investigative service and problem resolution as necessary. Additional funding is needed for advertising services to
accomplish the public education.component of the program; $10,000 annually is recommended for this purpose, an
increase of$5,700 from the current funding level of$4,300 annually. No additional staffing is anticipated at this
time.
OUTCOME-FINAL WORK PRODUCT
Continued communication with the community's neighborhoods in increasing revitalization and self-help efforts,
and reduction in calls to City staff for service through two new 30-second television commercials per year, various
print ads,and neighborhood meetings.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
LONG-TERM FISCAL HEALTH
OBJECTIVE
Protect the City's long-term fiscal health by maintaining a balanced budget, an adequate capital improvement plan,
and an adequate unreserved fund balance.
DISCUSSION
Background
Results of the five year fiscal forecast. As part of the Council goal-setting process for 1997-99, a detailed five
vear forecast for the General Fund was prepared in order to assess the City's fiscal environment, and gain some
initial insights on the "order of magnitude" difficulty we would likely experience in balancing the budget for 1997-
99. In developing this forecast, staff prepared a preliminary "forecast CIP"that assumed reasonable progress over
the nett five years in achieving adopted infrastructure and facility improvement goals. This resulted in a General
Fund CIP of about$3.9 million annually. Of this amount, about 45% ($1.8 million) was for maintaining existing
infrastructure and facilities, and about 55% ($2.1 million) was for expanding, building or acquiring new
infrastructure,facilities and equipment.
Three different scenarios based on varying capital improvement plan (CIP) assumptions were prepared in this
forecast (all other assumptions for revenues, operating expenditures and debt service were the same under each
scenario). Depending on the CIP assumptions, the annual revenue/expenditure gap ranged from $1.4 million
annually under the modest CIP scenario (which funded the CIP at $2.8 million annually versus the "forecast CIP"
of$3.9 million) to an essentially balanced budget under the very reduced CIP scenario (which funded the CIP at
$1.4 million annually). While not formally evaluated as one of the three scenarios, funding the CIP at the
"reasonable progress" level set forth in the forecast CIP would have resulted in an annual $2.5 million
revenue/expenditure gap.
Under the reduced CIP scenario — which funds maintenance of existing infrastructure at about $1.9 million per
year — the annual revenue/expenditure gap in the forecast is about $500,000. For purposes of preparing the
preliminary Financial Plan,this is the "target"CIP level selected by the Council.
Conclusions about our fiscal situation. In reviewing the results of 1995-97 Financial Plan and the recently
prepared five year General Fund fiscal forecast,two things are clear:
■ The tough budget decisions made over the past six years have been essential in preserving the City's fiscal
health. In comparing our financial condition today, we are on-track with the forecast projections made as
part of the 1993-95 Financial Plan process.
■ Significant challenges continue to face us in funding the delivery of essential services and achieving our
adopted CIP goals. This simply underscores the fact that fiscal health is not something we will ever
achieve"once and for all';like our personal health,this requires an ongoing commitment to this goal. This
is especially true in a time of fiscal uncertainty like we are experiencing today.
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Issues We Will Face in Achieving this Goal
The City's short-term strategy for addressing the projected revenue/expenditure gap of $500,000 for 1997-99
consists of the following four components:
■ Limiting operating cost increases and reviewing service levels for expenditure reduction opportunities.
■ Developing a capital improvement plan (CIP) that focuses on adequately maintains our existing
infrastructure and facilities.
E Considering new revenue opportunities as allowed under Proposition 218.
■ If needed, making strategic use of fund balance and temporarily taking it below policy levels, subject to
preparing a definite plan for restoring this balance in the future.
However, this strategy will not serve us well in the longer term if we want to maintain current service levels and
achieve our already-adopted infrastructure and facility improvement goals. As noted above, funding the CIP at the
"reasonable" progress level results in a $2.5 million annual revenue/expenditure, assuming no enhancements in
current service levels or new CIP needs. As such, we need to identify and implement other strategies for preserving
service levels,achieving CIP goals,and maintaining our fiscal health. These might include:
■ Organizational transformation. Making our organization more productive, and delivering current or
higher levels of service for less.
■ Economic development Helping our economy perform better than our forecast projections.
■ Legislative advocacy. Getting back what was taken-away from us by the State.
■ Citizen-supported revenue options. Developing revenue strategies for a possible November 1998 election.
ACTION PLAN
There are four proposed components to this action plan for fiscal health:
■ Increase organizational productivity. Staffing costs are the largest part of the City's budget, accounting
for 75%of operating costs in the General Fund. As such,identifying and implementing ways of improving
organizational effectiveness and customer service on an ongoing basis is an essential component of any
long-term fiscal health strategy.
■ Prepare a long-term funding strategy. The budget-balancing strategy outlined for 1997-99 will not
resolve our long-term funding issues if we want to at least maintain existing service levels and achieve our
capital improvement goals. To do this, we need to prepare a longer-term funding strategy that can achieve
broad-based community support. This will be especially true if new revenue options requiring voter
approval are part of this strategy. One approach for doing this is to create a task force similar to that used
in developing economic development,environmental protection and open space financing strategies.
a Evaluate the costs and benefits of annexing Cal Poly. While Cal Poly is not in the City limits, its
operations have a significant impact on the community. The City already provides Cal Poly with four key
municipal services: fire,water,sewer and transit; and we have a major investment on the Cal Poly campus
in the performing arts center. Our partnerships and inter-relationships with Cal Poly are likely to increase
over time, with the current proposal for sharing in the costs of developing a sports complex as the most
recent example. As such, it is timely to ask ourselves in a comprehensive way what the costs and benefits
would be if Cal Poly was a formal part of the City. In addition to evaluating the fiscal benefits to the City,
this study would also look at the experience of other communities that have major universities within their
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city limits. It would also evaluate impacts on Cal Poly and the County, as their support will be needed if
this is to occur.
■ Review and monitor the City's fiscal condition. Effective reporting and monitoring of the City's fiscal
condition on an ongoing basis is an essential, fundamental component of managing our finances and
assuring our long-term fiscal health.
Increase Organizational Productivity
■ Identify ways of strengthening an organizational culture that constantly asks what are 10/97
we doing and why, and continuously takes positive action to improve City operations,
organizational productivity and customer service.
■ Develop and present program to the Council that reinforces and strengthens these values 1/98
on an organization-wide basis.
■ Begin program implementation;monitor progress. 4/98
■ Formally review program results after one year;identify areas for improvement. 3/99
Prepare Long-Term Strategy for Fiscal Health
■ Develop and present approach and work program to the Council. 9/97
■ Begin preparing long-term strategy. 11/97
■ Present recommendations to the Council in time for a measure to be placed on the
November 1998 ballot in the event that this is part of the proposed strategy. 4/98
Evaluate Costs and Benefits of Annexing Cal Poly
■ Discuss proposed study with Cal Poly and County officials. 7/97
■ Determine workscope;request proposals from qualified consultants. 10/97
■ Select consultant;begin preparing study. 1/98
■ Complete study;present findings to Council, Cal Poly, County and the community. 7/98
Review and Monitor our Fiscal Condition
■ Adopt the 1997-99 Financial Plan and begin implementing any specific
budget-balancing expenditure or revenue programs set forth in it. 7/97
■ If approved,begin implementing a new financial management system. 8/97
■ Prepare,consider and adopt the 1997-98 mid-year budget review. 2/98
■ Prepare,consider and adopt the 1998-99 Financial Plan Supplement. 7/98
■ Prepare,consider and adopt the 1998-99 mid-year budget review. 2/99
■ Continue to provide on-line,up-to-date financial information to departmental staff. Ongoing
■ Continue to issue timely and accurate monthly financial reports. Ongoing
■ Continue to issue comprehensive quarterly financial reports and status reports
on achieving major City goals and CIP projects. Ongoing
■ Present reports to Council as needed on any major unanticipated fiscal issues. As needed
RESPONSIBLE DEPARTMENTS
All departments play a critically important role in ensuring the City's long-term fiscal health through their
management and use of City resources; however, Administration, Personnel and Finance will be especially involved
in achieving this goal.
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FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Organizational Productivity. Two new activities are recommended in pursuit of this objective:
■ Organization-wide training. Department program training budgets are typically oriented towards the
technical aspects of the department's mission; there are currently no funds set-aside for training on
organization-wide goals of improving organizational effectiveness, productivity and customer service.
Implementing a training program focused on City values and productivity improvement goals is estimated
to cost$13,400 in 1997-98 and$12,000 in 1998-99.
■ Tuition reimbursement. This program would assist employees in improving their skill levels on their own
time. A modest investment of$13,500 annually in this program is recommended.
Long-Term Fiscal Health Strategy. While this will require a major commitment of existing staff resources, no
additional funding is required for this work effort.
Study of Cal Poly Annexation Costs and Benefits. Consultant assistance is recommended in completing this
work at an estimated cost of$30,000. While the consultant will have the lead responsibility for performing this
work,there will still be a major commitment of staff time in managing the project, reviewing the consultant's work,
and in presenting the results to policy-makers. Consultant assistance is proposed for two reasons:
■ Timing and workloads. Much of this work is planned to be completed at the same time as the "long-term
fiscal health" project. It will not be possible for City staff to directly work on both of these, create a
quality work product, and adequately deliver day-to-day services at the same time.
■ Third party credibility. Even if the staff could find the time to do this work,we believe that we will benefit
from an independent, third party performing this work. While this is within the technical capabilities of
the staff, it will be important for there to be the highest levels of credibility when the results are presented
to Cal Poly,the County and the community.
Review and Monitoring of the City's Fiscal Condition
e Operating program costs. Significant staff resources are currently allocated throughout the organization
in ensuring the City's fiscal health on an ongoing basis. Other than these existing resources, no specific
increases in regular staffing are anticipated over the nett two years for this purpose; however, significant
efforts will be made by Administration and Finance staff in reviewing budgets and monitoring their status.
■
CLP costs. The information technology master plan identifies improving the City's financial management
information system as one of its highest priorities. During 1996-97, funding for this project was
transferred to the public safety system, which was short on funding and rated as an even higher priority.
While it is possible that interim improvements can be made to our system that address immediate year
2000, payroll and system integration needs, implementing an effective financial management system will
cost about$400,000.
OUTCOME- FINAL WORK PRODUCT
Strategies, programs and systems for assuring our long-term fiscal health in accomplishing important community
goals.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
COMMUNITY PARTNERSHIPS
OBJECTIVE
Encourage creating non-profit corporations for projects such as open space acquisition and adobe preservation.
DISCUSSION
Background
During the past year, it has become apparent that there are a number of activities or needs that, while of concern to
the City,cannot be addressed directly due to limitations on financial resources. However,some of these issues have
raised such a high level of community interest that individual groups have stepped forward and offered to assume
responsibility for taking action if the City would assist them with support in terms of official recognition and "seed
money".
Such a group is Friends of Las Casas de Adobe (FOCA). FOCA is in the process of incorporating as a non-profit
organization for the purpose of restoring and preserving three historical adobe buildings owned by the City.
Similarly, during Council goal-setting, a suggestion from the public was made that the City encourage the
formation of a non-profit organization to receive contributions for open space acquisition. At the same time, Parks
& Recreation has been meeting with a number of local citizens to consider forming a non-profit foundation to
support department activities by securing grants not directly available to a city. Such grants could be used, for
example,to provide program scholarships for"at risk"youth. A foundation would also allow program participants
to make contributions for the purchase of specialized or upgraded equipment, like a new kiln for a pottery class. (It
is important to note that the Parks and Recreation foundation will not compete with local non-profit organizations
for existing resources;any funds that might have been diverted from existing non-profits will not be accepted by the
Foundation.)
Proposed Program Workscope
■ Initial pilot program efforts. In establishing a goal of encouraging community partnerships with non-
profit corporations, the Council has recognized the tremendous potential for additional volunteer and
economic resources this could create. However, because the possibilities are so wide-ranging, it will be
important for the City to move forward into these partnerships in a well thought-out, logical way, based on
a full understanding of the implications involved. Therefore, the initial workscope will be limited to
acquiring information from other governmental agencies on similar programs,developing a program policy,
and moving forward, on a pilot basis, to establish relationships with FOCA and a Parks & Recreation
foundation. Council approval will be necessary for creating the Parks & Recreation foundation and any
"seed money"provided to the two pilot programs.
■ Limitations. Since the Land Conservancy already exists as a non-profit organization for open space
acquisition, encouraging an additional organization would not appear to be beneficial at this time, and as
such, is not being proposed for inclusion as a pilot program. The Natural Resources Manager concurs with
this decision. In effect, the City already has a partnership with a non-profit which could be utilized as a
resource for open space acquisition. Fostering another organization could potentially dilute the
effectiveness of the Land Conservancy, and lead to unhealthy competition for the same funds. However,
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the Natural Resources Manager will approach the Land Conservancy about formalizing its relationship
with the City in this role.
The Police Department has also considered encouraging the creation of a foundation like the one being
proposed by Parks & Recreation, but no formal planning has taken place and it is not being proposed as a
pilot program at this time.
Issues We Will Face in Achieving this Goal
There are many questions which need to be resolved before a final policy can be developed,including:
N What is the best structure for the non-profit organizations?
■ Would it be in the City's best interest to encourage the creation of a single "umbrella" foundation which
would incorporate a variety of activities, or would the City be best served by forming partnerships with a
number of single-interest organizations?
■ Should City staff assist in forming a foundation, or should the City simply wait until a non-profit is fully
organized before becoming involved with it?
■ Should the City offer"seed money"or simply in-kind support?
■ What is the best way to provide formal acknowledgment of these partnerships?
■ What are the legal implications of any relationship with a non-profit?
■ How direct a role should the City play in providing financial support services?
Some of these questions can be answered by surveying other agencies; others will be answered as the City follows
through on the two pilot programs.
ACTION PLAN
■ Provide Friends of Casas de Adobe (FOCA) with encouragement, formal recognition, 7/97
"seed money"and in-kind support,as approved by Council.
■ Assist in developing a Parks and Recreation Foundation after Council approval. 8/97
■ Collect data from other communities and community organizations. 8/97
N Hold study session to review program progress. 10/97
■ Formalize relationship with the Land Conservancy. 1/98
■ Develop policy on community partnerships. 1/98
■ Assist City departments in assessing opportunities for potential community partnerships. 3/98
■ Continue monitoring success of FOCA and Parks and Recreation Foundation. Ongoing
RESPONSIBLE DEPARTMENT
■ .Administration for overall program coordination, liaison with the Land Conservancy, and assistance to
FOCA.
■ Parks and Recreation for its own departmental foundation.
■ Community Development for assistance with FOCA.
■ Other departments for proposing future partnerships.
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FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
FOCA has requested $22,005 for the 1997-98 fiscal year in order to perform structural analyses on two adobes,
fence and light one adobe for security reasons, stabilize the roof and walls of one adobe, and initiate fundraising
activities.
OUTCOME-FINAL WORK PRODUCT
Development of a policy on partnerships with non-profit organizations which will provide guidance to City
departments as they move forward in the future with such alliances.
Simultaneously with developing this policy, a Parks & Recreation Foundation will be created which will allow
contributions to support scholarships and materials for community recreation programs. Additionally, a formal
relationship and "seed" funding will be provided to Friends of Las Casas de Adobe which will allow structural
analyses on three City-owned adobes, security at the adobe sites, initial stabilization of the buildings and the
commencement of fundraising activities to support future restoration. Finally, a relationship with the Land
Conservancy relative to open space acquisition will be formalized.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
NEIGHBORHOOD TRAFFIC MITIGATION
OBJECTIVE
Implement traffic mitigation programs in neighborhoods and commercial areas called for by the General Plan
circulation element.
DISCUSSION
Background
The adopted circulation element (policies and programs 6.1 through 6.9) describe various neighborhood traffic
issues to be addressed. Public Works has successfully installed test facilities on Augusta Street, and a final
permanent solution at that location was installed in the summer of 1996. Test facilities have been installed on
Ramona Street, and permanent facilities should be installed by summer of 1997. However, implementation of test
facilities as part of a total neighborhood plan for the Chorro area neighborhood traffic management plan was not
well received by the public. Due to the controversy that arose with this project, the Council directed that staff
research and prepare more formalized Neighborhood Traffic Management Guidelines for Council consideration.
Thus, while single-point traffic calming issues have been successful in some areas, it is apparent that more work is
needed prior to program implementation for entire neighborhoods.
Proposed Program Overview
® Public Works staff will work with a staff-citizen steering committee to prepare Neighborhood Traffic
Management Guidelines. These guidelines will include standards for the design and installation of various
types of traffic calming devices, establish protocols for citizen participation in the mitigation planning
process and consensus building,and establish financial responsibilities for installing and maintaining traffic
calming facilities.
■ After the guidelines are adopted by the Council, staff will advertise the program and respond to citizen
service requests.
Staff will evaluate the design of traffic management facilities installed in the past that use plastic pylons
and other less-permanent materials and pursue improvements to their function and aesthetics.
Issues We Will Face in Achieving this Goal
Given the City's recent experience with neighborhood traffic calming, it will be important to give careful
consideration to the Guidelines when presented. Obtaining lots of public input on the design of neighborhood
facilities prior to design will be crucial as a means of decreasing the amount and validity of the criticism which will
follow construction. Likewise, determining an equitable means of cost allocation between the City and the
neighborhoods for facilities which serve those neighborhoods will be a key issue.
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ACTION PLAN
■ Prepare and submit neighborhood traffic management guidelines to the Council. 12/97
E Council adopts guidelines. 3/98
■ Advertise and distribute program materials. 5/98
■ Begin implementing improvements in at least one neighborhood per
guidelines(if identified). 8/98
RESPONSIBLE DEPARTMENT
Public Works will assume primary responsibility for plan preparation; Community Development, Police and Fire
will have significant input in the Guidelines and any neighborhood plan preparation process.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Existing staff resources will be used to thoroughly research similar work done by other communities and to work
with a steering committee to prepare the guidelines. (Note: our library currently includes guidelines from 22
different agencies). Once the guidelines are adopted, $35,000 from the General Fund would be budgeted each year
to support installing traffic mitigation devices throughout the community. This assumes that there would be some
type of cost sharing with neighborhood residents and/or businesses.
Major projects after 1997-99 would be pursued as a new capital improvement plan initiative project, or as part of
the Financial Plan Supplement or mid-year budget adjustments.
OUTCOME-FINAL WORK PRODUCT
A more controlled traffic flow through neighborhoods and an improved process for responding to citizen requests
for service.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
BICYCLE PLAN IMPLEMENTATION
OBJECTIVE
Continue to implement projects and programs called for by the adopted Bicycle Transportation Plan.
DISCUSSION
Background. Since the Bicycle Plan's adoption in 1993, Public Works has been aggressively pursuing its
implementation. The staff has maximized the use of stats and federal funds to pursue major bicycle projects. The
action plan presented below identifies key program activities.
Issues we will face in achieving this goal. Acquiring land (phase II) from the Union Pacific Railroad is a time
consuming process, especially when the property may have contamination issues which need to be addressed.
Likewise, negotiations to obtain a sub-lease from Amtrak to make the final connection to the Jennifer Street bice
bridge could become protracted.
ACTION PLAN
■ Complete phase I of the railroad bicycle path(from Orcutt to Bushnell streets). 9/97
■ Complete the Jennifer street bicycle-pedestrian bridge. 3/98
■ Complete phase II of the railroad bicycle path(from Bushnell to Jennifer street). 3/99
■ Install rubberized railroad crossings on Orcutt Road as part 7/99
of the Orcutt Road widening project and at Foothill and Marsh streets.
e. Continue to pursue minor on-street bike lane projects and bike rack/locker Ongoing
installations using grant funding where possible.
N Continue to work with area schools to produce bicycle-pedestrian promotional Ongoing
literature and safety information.
E Continue to apply for grant funding to support all types of capital and Ongoing
promotional activities associated with bicycling.
RESPONSIBLE DEPARTMENT
Public Works
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
This program is supported by a half-time Transportation Technician, with help from the Principal Transportation
Planner and capital project management assistance from the engineering staff. No additional staff resources are
anticipated. The combined cost of these capital projects is approximately $2.2 million of which about 70% is
supported by state and federal funding.
FINAL WORK PRODUCT
Improved City-wide bicycle transportation system for commuting, business and recreational activities called for by
the adopted Bicycle Transportation Plan.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
TRANSIT TRANSFER CENTER
OBJECTIVE
Construct a Multi Modal Transit Transfer Center OWdTTC) south of the existing Railroad Square parking lot,
east of Santa Barbara Street; and construct a transit Super Stop in the downtown commercial core to improve
transit access and increase safety.
DISCUSSION
Background
For years,the City has been working to build facilities that enable transit connections between SLO Transit and the
regional transit system (SLORTA) as well as connections via other modes of transportation. The Downtown
Concept Plan envisions a single "transfer center" located at the edge of the downtown, northeast of Santa Rosa
Street. However, sites in this area and elsewhere in the downtown are not available for sale, not big enough to
accommodate transit vehicles, are in the wrong locations to enable efficient transit routing, or are too expensive.
Therefore, to meet the community's needs within funding limits,the City, County, SLOCOG and transit providers
(members of the "stakeholders" group) are pursuing a two-phased program: (1) construct a major multi-modal
facility on surplus railroad property south of Railroad Square east of Santa Barbara Street; and (2) construct a
downtown"Super Stop"to foster safe transit access and transfers between routes and systems.
Issues We Will Face in Achieving this Goal
■ Land acquisition from the Union Pacific Railroad can be a time consuming process, especially over issues
concerning liability of potential contamination issues.
■ Depending upon the site layout chosen,the City/SLORTA/SLOCOG project may become involved with the
Uniform Relocation Act.
■ Regardless of which site layout option is chosen, this project will heighten community awareness of(and
interest in)rehabilitating or relocating the railroad freight building.
■ For funding reasons,the project may have to be broken into phases for implementation -the first being the
N=C and the second the additional Amtrak parking area.
ACTION PLAN
Multi-Modal Transit Transfer Center
■ Complete land appraisals and site environmental evaluations. 1/97
■ Select preferred schematic design option and begin EIR preparation. 6/97
■ Certify EIR,secure State funding,and complete land acquisition. 4/98
■ Complete plans and specifications;award construction contract. 8/98
■ Complete construction. 9/99
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Downtown Super Stop
■ Select location and complete schematic design for on-street transit improvements. 5/97
■ Complete environmental evaluation(we anticipate a categorical exemption
or mitigated negative declaration;add seven months if a focused EIR is required). 7/97
■ Complete plans and specifications and award construction contract. 1/98
■ Complete construction. 7/98
RESPONSIBLE DEPARTMENT
Public Works will have the major role in managing this project; Community Development will administer the
environmental review process.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
$1.9 million in state and federal funds would be used to design and construct the MMTTC. About $200,000 of
State and federal funds would be earmarked for the construction of the Downtown Super Stop. The Stakeholders
Group and the downtown design group (architects and planners of the Downtown Concept Plan) would continue to
assist and provide policy direction. Environmental consultants will be hired to prepare the required EIR with design
consultants retained to prepare construction documents.
OUTCOME—FINAL WORK PRODUCT
Improved City-wide and regional transportation by providing a safe,convenient and inviting multi-modal center and
downtown transit stop designed to promote and enhance transit usage.
43 -
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
RvIPROVED VEHICLE CIRCULATION
OBJECTIVE
Implement projects and programs called for by the adopted General Plan Circulation Element that improve vehicle
circulation.
DISCUSSION
Background. Since the circulation element's adoption in November, 1994, the City's efforts in this area have
focused on changes to City streets associated with proposed development projects, signal modifications that
improve traffic flow at intersections, continued circulation planning in the airport area, and updating of the City's
traffic model (MINUTP). Also, the 1995-97 Financial Plan includes street projects that are will be carried
forward into 1997-99. The action plan below provides a synopsis of major program activities.
Issues we will face in achieving this goal. Widening the north side of Orcutt Road in accordance with the
Council's previously adopted master plan for the street will cause the loss of all on-street parking. The homeless
shelter is the only major user of on-street parking in this area. Loss of this parking at this site will mean clients of
that facility will need to park their vehicles on McMillan. As the shelter is already at capacity,this loss of parking
may trigger a re-consideration of other sites for the homeless shelter.
ACTION PLAN
■ Widen the north side of Orcutt Road between Laurel and McMillan Lanes. 6/99
■ Realign Bullock Lane to connect with Laurel Lane and install stop controls. 6/99
■ Begin the study of access options between north coastal areas and San
Luis Obispo (reference program 8.14 of the circulation element). 7/98
E Continue to work on the Margarita and the airport area annexation
specific plans. Ongoing
n Upgrade existing traffic signals or install new ones at various locations. Ongoing
® Install Opticom systems at key intersections to improve emergency vehicle access. Ongoing
® Install traffic management facilities that help improve circulation and reduce impacts. Ongoing
RESPONSIBLE DEPARTMENT
Public Works
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
The City's General Fund and state highway account (SHA) resources will be used to pay for street construction
projects. Traffic signal projects have been funded in the past using SHA dollars; continued funding support will
depend on the federal government's reauthorization of the Intermodal Surface Transportation Efficiency Act
(ISTEA), scheduled to occur during this current Federal fiscal year. Staff anticipates that the design of these
facilities will be done by the City engineering staff with assistance from consultants on an"as needed"basis.
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Specific planning studies and environmental evaluations will be managed by the Community Development
Department with funding support from area property owners.
The north coastal access study will be managed by SLOCOG, with funding contributions coming from the City,
SLOCOG,and the County with the total cost of consultant services estimated at$175,000.
OUTCOME- FINAL WORK PRODUCT
Improved vehicular transportation City-wide by completing circulation projects and programs called for by the
adopted circulation element.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
LONG-TERM OPEN SPACE FUNDING
OBJECTIVE
Identify a permanent funding mechanism for preserving open space,possibly to be presented to voters for approval
in November of 1998.
DISCUSSION
Background. Establishing a permanent funding mechanism for acquiring open space has been an important City
objective for many years,but particularly since 1994. In January of that year,the Council adopted the Open Space
Element of the City's General Plan. This element calls for preserving the unique environment in and around the
City. Specifically identified within the City were resources such as hillsides, creeks, habitat areas and historical
sites. Surrounding the City, there was a designated greenbelt, and within that area the emphasis was on preserving
natural resources and agricultural character,and buffering the City from urban encroachment and sprawl.
In August of 1994, the Council gave direction to staff to begin implementing this element, which included
identifying natural resources within the city and greenbelt, developing and acquiring a priority system for open
space acquisition using existing funds at that time, developing a long-term funding plan for the continued
acquisition of open space,and preparing non-fee based strategies to ensure a greenbelt preservation.
Progress has been made on all four of these directions. A natural resources inventory within and surrounding the
City is underway. Priorities for open space acquisition using the City's existing open space funds have been
completed, and the funds have been allocated to several priority projects. An effort was undertaken in 1996 to
identify a potential funding program for continued acquisition of open space, and several non-fee programs are
underway to ensure long-term greenbelt preservation. These include dedicating lands as part of the development
approval process, developing a Memorandum of Understanding with San Luis Obispo County, and encouraging
non-profit organizations to seek and obtain the donation of land (or development rights to that land) for
conservation purposes.
In late 1995, the Council established a task force of interested citizens to evaluate and recommend strategies for
funding open space preservation. This was done, and in July of 1996 the Council authorized an advisory ballot
measure on the November 1996 ballot that asked voters if they would be supportive of an assessment district to
fund open space acquisition. This question was put to the voters, and the answer was that the citizens, by a narrow
margin,were not in favor of that particular mechanism as a means of such funding.
Reasons for this outcome are uncertain; however, reasons that have been put forward include general anti-tax
sentiments,concern about retirees and others living on fixed incomes, and the lack of specific priority properties for
the funds. The general goal of open space protection, however, continues to enjoy broad community support, and
therefore conservation methodologies such as pursuing state and federal grant funds, donating land or conservation
easements,and requiring dedications in conjunction with development entitlements continue to go forward.
Staff believes that a more focused and project-oriented open space funding program, perhaps done in association
with other community needs,has a reasonable chance of being successful in future elections.
-46-
Issues we will be facing in achieving this goal. Criticism of the assessment district approach to open space
funding focused on the fact that only a certain segment of the community (property owners) was being singled-out
to pay for a benefit that would be received by all; that there were no clear objectives or projects identified in the
program; and that other mechanisms were in place that could accomplish the same objective at little or no taxpayer
expense. These arguments can be expected to be raised again and, therefore, the validity of these statements needs
to be assessed and responses developed.
It is also apparent that differing segmenti of the community have different emphases within the general objective of
preserving open space: some will emphasize recreation lands, some will emphasize wildlife resources, some will
emphasize scenic corridors, and others will emphasize preserving our rural setting. As such, it may be appropriate
to link these factors in some fashion to achieve as broad a program as possible.for consideration by the voters.
ACTION PLAN
0 Staff evaluates remaining funding options available to the Council. 9/97
E Review options with the Council in a study session. 10/97
■ If feasible alternatives exist,establish citizen group to explore long-term
funding strategies in greater detail. 11/97
E Obtain Council approval of long-term funding strategy for possible consideration
by the voters in November of 1998. 3/98
RESPONSIBLE DEPARTMENT
® Administration will provide overall policy direction to the program,with the Natural Resources Manager as
the lead staff person.
■ Parks &Recreation and Public Works will participate and provide informational support.
e Finance will provide financial information for the project. .
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Staff time can be made available within current operating levels and minor amounts of funding will be needed to
provide for copying and other clerical support services. Funds are available within the existing natural resources
protection program.
OUTCOME-FINAL WORK PRODUCT
Development of a long-term funding strategy for open space preservation, possibly for consideration by the voters
in November of 1998.
-47-
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
CONTINUED OPEN SPACE FUNDING
OBJECTIVE
Continue open space funding by allocating$100,000 annually in General Fund resources toward acquisition efforts.
DISCUSSION
Background
The citizens and the Council of San Luis Obispo have traditionally been very supportive of preserving open space
surrounding the community in maintaining and enhancing the community's quality of life. Over the past years, the
City has allocated approximately $1.5 million in General Fund resources toward acquisition of open space. With
the hiring of the Natural Resources Manager in 1996; steps have been taken to begin implementing this desire and
utilizing these funds. Accordingly, out of five initially-identified acquisition projects, two have been carried
forward to the point of Council authorization of the transactions;this was done in October of 1996.
Later in 1996, the 1,500-acre Guidetti conservation easement was acquired by the City, and staff is now moving
into the final phases of a transaction with the Maino family for 75 acres of property within and just outside the city
limits on the slopes of Cerro San Luis. Other projects which continue to be pursued as high priorities by the
Council include Bishop Peak, Ayers Ranch, Morganti Ranch, and Muscia property. Of these, the Bishop Peak
project is furthest advanced, and funds for its acquisition are being pursued from a variety of local and state
sources as well as private individual contributions. Contribution of City funds will be an important element in
completing the Bishop Peak project.
Issues We Will Face in Achieving this Goal
In the City's current budget environment, funding for all programs will be competitive. Thus, allocating funds for
open space acquisition from the General Fund, making linkages to other sources, leveraging, and similar efforts
need to be demonstrated. For this reason, staff is recommending that any additional appropriations for this purpose
not be perceived as simply an allocation into an undefined fund, but dedicated to a specific project or projects. A
minimum leverage of ratio for grant funding should also be a part of any General Fund appropriation.
Proposed Funding Program
For 1997-98, we are recommending that $100,000 in General Fund resources be allocated to the Bishop Peak
acquisition project. We anticipate successfully pursuing as much as $500,000 to $600,000 in grant funds,
primarily from State sources. It is important to demonstrate City commitment to the project as well;therefore, the
allocation of$100,000 toward this project is recommended.
The Council has previously identified several other high priority projects, including the Ayers Ranch, Morganti
Ranch, and Muscia property as noted above. Assuming successful conclusion of the Bishop Peak transaction, we
would then turn our attention to these projects. Staff feels that in any of these projects, an allocation of City
resources will help substantially towards receiving matching funds, and putting together a package to make the
project work. Therefore, it is recommended that for the second year of the budget period, $100,000 be allocated to
open space funding for these projects,to be the basis from which the seeking of other sources from state and local
-48-
agencies can be made. In addition, a pre-condition for spending these funds would be that they are leveraged by at
least a 1:1 ratio with outside funding.
ACTION STEPS
0 Complete application for state grant funds from Wildlife Conservation 5/97
Board and State Coastal Conservancy for the Bishop Peak project. 5/97
0 Complete Bishop Peak transaction. 12/97
0 Evaluate alternative conservation concepts for other identified
high-priority projects. 12/97
■ Undertake grant application programs for selected project or projects.. 1/98
0 Complete transaction(s)using"second"$100,000,plus grants. 12/98
RESPONSIBLE DEPARTMENT
Administration will oversee the project with support from Community Development and Finance.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Staff resources will be provided primarily by the Natural Resources Manager. There will be a need for some
analysis of "transfer of development credit"opportunities connected with this project. There will also be a need for
a property appraisals and for seeking additional receiver sites as well. Funds are available within the existing
natural resources protection program budget to support these costs.
OUTCOME- FINAL WORK PRODUCT
Preservation of open space by successfully completing high-priority acquisitions that effectively use limited City
resources in leveraging other funds.
-49-
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
MID-HIGUERA STREET MASTER PLAN
OBJECTIVE
Prepare and adopt a master plan for the mid-Higuera Street area(bordered by the intersection with Marsh Street to
the north and Madonna Road to the south) guiding improvements on. sites affected by any widening of Higuera
Street or San Luis Obispo Creek.
DISCUSSION
Overview
This area serves as the transportation, use and visual corridor between the City's two most important retail areas:
the downtown and Madonna Road areas. This area, although somewhat neglected in the past, has both natural
amenities — the creek and creek banks — and great future potential as an attractive community link to the South
Higuera and Madonna areas south of the downtown.
The purpose of the plan,as called for by the City's adopted General Plan, is to prepare a conceptual redevelopment
plan that would, among other things, improve traffic along this stretch of Higuera Street, establish driveway
locations, possibly provide landscaped medians, reduce flood hazards,protect habitat along the riparian corridor of
San Luis Obispo Creek, provide for proper pedestrian and bicycle paths, and maintain and enhance the vitality of
businesses located in this area.
Background
The General Plan land use element defines several areas within the City as "optional use and special design areas".
The mid-Higuera street area has been designated a special design area in which it is encouraged that streetscapes be
renovated through landscaping and building facade improvements. The land use element also states that the plan
should address street and driveway improvements, flood hazards, habitat restoration and parkway opportunities
along San Luis Obispo Creek. The plan should also serve as a "conceptual redevelopment plan" to maintain and
enhance the vitality of businesses located in this area. The City should work with property owners to prepare a
plan containing design guidelines and implementation programs. Implementation programs may include incentives,
such as variations from development standards or loans.
The land uses along this segment of Higuera street have changed over the years from manufacturing to retail and
service-commercial activities. Several existing uses are not consistent with the current Services and Manufacturing
land use designation and C-S zoning. Remnants of former uses remain along with activities allowed by current
standards. This has lead to a variety of building types and uses, some of which are not compatible with their
neighbors. The appearance of the area suffers from a lack of landscaping. In addition, driveway locations are not
compatible with the level of traffic the street now carnes. Right-of-way improvements are needed for the street to
better convey the amount.of traffic it carries.
The current properties do not take advantage of the amenity value the creek corridor offers, nor do they make
highest and best use of the property on a sales tax per square foot basis. Because some of the properties in the area
are in transition,the City could position the area for the benefits future development can offer. Just as importantly,
the area is the southern entrance to the City's downtown. A plan for the downtown has been prepared for its long-
-50-
term aesthetic and functional viability. The contrast between the aesthetic quality of this area, adjacent to the
downtown along the main entry street, and the downtown itself is already apparent. This plan would help create a
more uniform quality for the streetscape of Higuera Street as it enters the downtown.
The Mid-Higuera street area is subject to flood damage by waters overflowing the banks of San Luis Obispo Creek.
Public Works is currently working on a city-wide flood control program. It is likely this plan will make use of the
information and recommendations being developed by Public Works, and apply them to this specific area of the
City. The creek corridor is an important natural habitat and a valuable visual resource. A plan addressing flood
hazards, revegetation and habitat restoration, and parkway opportunities along the creek should be a part of future
planning.
A plan addressing all these needs, combining solutions where possible, is the optimum way to address the physical
problems that exist in the area and improve the economic potential of the properties. The economic development
component of the plan will help minimize financial impacts on property owners and encourage them to participate
in bringing about the improvements that can improve their property values, improve the function and appearance of
the street,reduce potential flood damage and improve habitat values along the creek.
Issues We Will Face in Achieving this Goal
■ Staff versus consultant preparation of the plan. A fundamental issue to be resolved is whether this
should be a staff-prepared plan or a consultant-prepared plan. Staff will also be involved with the
Margarita and airport area specific plans during this fiscal period, resulting in very limited staff resources
being available for this kind of planning effort. A consultant-prepared plan could be made to conform to a
predetermined schedule, while a staff-prepared plan would likely have to be done on a time-as-available
basis. This will make it difficult to maintain community enthusiasm and involvement in the process. A
consultant lead effort is therefore being recommended.
N Affect on property owners. The properties in the Mid-fliguera area are privately held. Improving traffic
on lEguera Street and reducing flood hazards will likely require additional right-of-way and land for creek
channel improvements. Much of this additional area will likely have to come from individual properties,
meaning the net usable space for some of the properties will be reduced and building siting may be more
difficult.
■ Environmental review. Adopting a plan will require environmental review and analysis of existing
hazards and impacts that could result from implementing a plan. The review process will determine the
type of CEQA documentation that will be necessary (environmental impact report or mitigated negative
declaration).
■ Plan implementation. Expeditious implementation of the plan will require the support and participation of
the property owners. If the implementation of the plan relies solely on market-driven development, plan
implementation will likely take much longer. The plan should therefore include incentives, such as
variations from development standards or loans. The plan should address what can be accomplished
through public improvements, and leverage this to the maximum extent to stimulate property owner
improvements. The plan should address short-term improvements as well as those that will likely be
dependent on market influences and eventual redevelopment of the properties.
O Creek habitat protection. Striking an appropriate balance between human use and recreation
opportunities in and near the creek corridor will be an important component of plan preparation. For
example, the bicycle transportation plan shows a paved bicycle path along the top of the creek bank
through the plan area, and adjoining private properties frequently contain development within.the setback
-51 -
line established by the recently adopted creek setback ordinance. Conversely, persons concerned with re-
establishing and protecting riparian habitat promote excluding all human uses from that same area.
■ Conflicting goals. Issues will emerge regarding human use versus wild life protection in the "top-of
bank"creek areas.
ACTION PLAN
■ Hold property owner meeting. September 1997
■ Finalize workscope;prepare and issue request for proposals. October 1997
E Select consultant, execute contract and begin work. January 1998
■ Hold property owner/community workshop. March 1998
■ Complete administrative draft plan. June 1998
■ Complete draft environmental documentation. June 1998
■ Hold property owner/community workshop. August 1998
■ Architectural Review Commission reviews plan. October 1998
s Planning Commission reviews plan. November 1998
■ Council adopts plan. January 1999
RESPONSIBLE DEPARTMENT
■ Community Development Overall project supervision,planning issues.
E Administration. Economic development and natural resource protection (flood control and creek
restoration)issues.
i Public Works. Circulation issues regarding Higuera Street and flood control issues.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Consultant services for the project are recommended in the amount of$65,000.
OUTCOME- FINAL WORK PRODUCT
The final work product will be a plan for more compatible land uses, improved streetscapes, reduced flood hazards,
enhanced habitat along San Luis Obispo Creek, and improved economic vitality and sales tax revenues.
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COUNCIL GOALS: 1997-99 FINANCIAL PLAN
LAGUNA LAKE DREDGING
OBJECTIVE
Dredge appropriate sections of Laguna Lake to maintain an adequate lake depth for recreational uses, improve
flood protection, create a more suitable environment for aquatic life, and increase the health and longevity of the
lake.
DISCUSSION
Background
The 1995-97 Financial Plan includes this project as part of its Capital Improvement Program (reference Appendix
B, page 133). The stated objective is to deepen the lake by about 5 feet and place the dredged materials on a 25
acre site northwest of Laguna Lake Park. The dredging would take about three years to complete with periodic
maintenance dredging every 5 to 10 years depending on rainfall and siltation.
For the last several years, a base line survey of the area's environmental setting has been underway along with an
evaluation of a potential disposal site on park grounds for dredge materials. This analysis is nearing completion
and the project can proceed.
Issues We Will Face in Achieving this Goal
We are likely to face significant difficulties in receiving Army Corps of Engineers permits for this project due to
two factors: receiving permit approval from the Corps is a time-consuming process under the best of
circumstances; and some of the baseline environmental work done by the City will be nearly seven years old when
the application will be submitted. Neighborhood concerns will also need to be addressed — most likely noise from
dredging operations—prior to starting the project.
ACTION PLAN
■ Complete baseline environmental surveys. 8/97
■ Review baseline environmental surveys and complete project description. 11/97
■ Complete environmental and architectural review of project(we anticipate
receiving a mitigated negative declaration/finding of no significant impact). 4/98
■ Receive project permits from federal and state agencies. 4/99
IN Issue bids,purchase and install equipment,and begin seasonal dredging. 9/99
RESPONSIBLE DEPARTMENT
Public Works
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
It will cost approximately $220,000 to purchase and install dredging equipment, pipelines and other facilities. An
additional $135,000 per year for time years will be needed to operate the dredging equipment (including operator
-53 -
salaries,construction equipment rental,electricity and fuel). The total project cost is estimated at$625,000 (capital
costs plus three years operating costs). This total does not include the cost of any unforeseen environmental
mitigation measures nor the cost of preparing a focused EIR/EIS if required by the City, state or federal agencies.
The project will be paid for with City general fund revenues.
OUTCOME—FINAL WORK PRODUCT
A deeper Laguna Lake that can be maintained to support desired recreation activities, improved flood protection, a
healthier aquatic environment and prevention of its conversion to marshland.
-54 -
COUNCIL GOALS: 1997-99 FINANCIAL PLAN
CONSERVATION AND ENERGY ELEMENT UPDATES
OBJECTIVE
Update the 1973 conservation element and 1981 energy element of the General Plan.
Background
The conservation element is now 24 years old and outdated, yet it is still an adopted component of the City's
General Plan. By state law, all development in the City must still be consistent with the policies contained in this
element of the City's General Plan. The proposed update program would evaluate combining an update of these
elements with the adopted open space element,thus reducing redundancy among elements and making for a better
integrated General Plan.
Other key objectives associated with updating the Conservation Element include:
■ Improving awareness and protection of natural resources.
■ Identifying plant,animal,soil,mineral,and hydrologic resources in the City and its greenbelt.
■ Conducting biological surveys and evaluations of habitat types in the city limits and the greenbelt by
consultants trained in biology, ecology, and planning, accompanied by recommendations for how the City
can best protect these resources in the long-term. These biological surveys will provide additional detail
and serve as a field check for resource mapping being done for the City's GIS database by other parties.
■ Revising goals, policies, and programs to guide the City's actions affecting the use and preservation of
natural resources,including energy.
■ Adopting more detailed natural resource protection policies to improve the City's efforts to preserve and
enhance plant and animal habitats in the City and the City's greenbelt.
Several of these activities are currently underway as part of the natural resources protection program.
Updating the conservation and energy elements was scheduled to begin in 1995. However, by the end of the 1993-
95 budget cycle, the funds reserved for updating the conservation element were not encumbered. A request for
funding the update in 1995-97 was not approved due to fiscal constraints. This item is the Planning Commission's
highest priority.program for the next budget cycle, but did not receive a high priority during the Council's goal
setting meeting. However, updating the conservation element remains a Council goal, and funding is therefore is
being requested to do the update in the 1997-99 fiscal cycle.
The open space element and land use element,both updated in 1994, will provide policy guidance for some issues
that will be further addressed in the conservation element update. Because of the overlap between conservation
element subjects and the topics already addressed in the City's open space element, the consultant will examine the
feasibility of combining and integrating these two elements into a single resources element. The City's program for
updating general plan elements has envisioned incorporating energy conservation into the conservation element
through the update process, effectively combining the previously separate elements. It was recommended by the
-55 -
City's Environmental Quality Task Force (EQTF) that the City prepare resource protection plans. The
conservation element is the location for many of the resource protection policies envisioned by the EQTF.
ACTION PLAN
■ Prepare workscope for the updates. 9/97
■ Prepare and issue a request for proposals. 10/97
■ Select the consultant,execute contract and begin work. 12/97
■ Meet with the consultant on a regular basis to discuss progress and review work Ongoing
products.
N Prepare and issue draft update. 1/98 through 7/98
■ Hold public workshops. As appropriate
■ Prepare and distribute environmental evaluation/documentation. 9/98
■ Prepare staff reports and hold Planning Commission public hearings. 11/98 through 12/98
■ Prepare Council reports and hold Council hearings;adopt updates. 1/99 through 3/99
RESPONSIBLE DEPARTMENT
■ Community Development. Overall project management,review of drafts,staff reports.
■ Administration - Natural Resource Protection Program. Project participation, consultant guidance,
review of drafts, staff reports.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
We recommend the use of consultant services to augment staff resources in: reviewing existing general plan
elements; inventorying resources through research, analysis and surveys; preparing policy recommendations;
recommending general plan format changes (if necessary); and providing assistance with preparing environmental
documentation and presenting information at public workshops or hearings. This will cost approximately $75,000.
Staff resources to provide project management,prepare environmental documentation, attend workshops and public
hearings and prepare necessary adoption materials is estimated at approximately 0.2 full-time equivalents(FTE's).
OUTCOME-FINAL WORK PRODUCT
Up-to-date and streamlined General Plan that better establishes the foundations for the City's resource protection
programs.
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MEETING AGENDA
x ITEM #
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"CAO ❑ FIRE CHIEF 1722 Conejo Avenue
/ATTORNEY . PDIR San Luis Obispo, CA 93401
KIDRIa 0 D POPOLICE CHF
D MGMT TEAM ❑ REC DIR
CC READ FILE O UnL DIR April 9, 1997
❑ ?EFsS 7iR
San Luis Obispo City Council
San Luis Obispo, CA 93401
G?�ill�v✓
Dear Mayor Settle and Council Members
Roalman, Romero, Smith and Williams:
In lieu of a presentation before you last night, this opportunity is taken to present this letter
regarding flood protection.
Thank you for authorizing earlier needed repairs on the rock catcher and opening to the 3'
concrete underground drain opening. Much more is needed for big stones.
On page 9 of the Council Goals: 1997-98 Financial Plan, the first three items under Action
Plan are important needs. The last five are necessary planning steps. Completing the storm
drainage plan on 3/99 is two years in the future. Big stones do not wait!
Could the master plan be completed before 3/99 with the Andrews drain being given high
priority?
The city, not just homeowners, is vulnerable when the Andrews drain fails. In March 1995
considerable repair work was required at the California Street bridge along San Luis Drive.
The total flow of the Andrews drain flood came down Cazadero Street to San Luis Drive and
emptied into San Luis Creek just before the bridge. Next time the bridge could be damaged.
Your very careful consideration of the City problems and ours is recommended regarding the
Andrews drain.
Sincerely yours,
Walter P. Schroeder
cc John Dunn
Michael D. McCluskey
RMcel wry
APR 16, '991;
!V TIN ,,_9 AGENDA
DAi E ITEM #
Timothy Grey
P.O. Box 12709
San Luis Obispo, CA 93406
April 14, 1997
Bill Roalman, City Council
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Dear Mr. Roalman:
I am writing to you as a concerned voter, a resident of the City of San Luis
Obispo, and a private pilot, regarding the pending annexation of land in and
around San Luis Obispo County Airport.
While I feel that the annexation of the airport area is an important part of the
managed growth of the City of San Luis Obispo, I am concerned about the
potential impact on the airport. Besides a valuable business and recreational tool
for myself, the airport is a point of arrival for tourists and visitors, therefore
bringing a substantial amount of revenue to the city.
In my view, it is important that the quality of the airport, and its capability to
sustain present operations, be preserved. I therefore urge you to exclude the
airport area from annexation, to ensure that airport operations are not adversely
impacted. Of particular concern are those areas directly under the departure and
arrival routes for the runways, and the airport traffic pattern. This will also
promote safe operations to and from the airport, and reduce complaints of noise
that is an unfortunate side effect of aircraft operations.
I hope you will give this matter serious thought, and exclude the airport property
and proximate land from the annexation plans. Thank you for your consideration.
Sincerely,
Timothy Grey
Ye'�GIUNCIL +D FIN DIRTC IV GL
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MEETII,,Ad AGENDA&, �
DATE.f.17-ofZ ITEM #.
MEMORANDUM
DATE: April 17, 1997
TO: City Council
FROM: Allen Settle, Mayo
SUBJECT: Joint 7-Cities Meeting
This is the update for the June 5"All-Cities meeting in Shell Beach. Please review and
provide comments.
C%YC UNCIL
CAO [7 FIN DIR
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,TTORNEY PW DIR
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❑ MGMT TEAM ❑ PEC DIR
❑ RfAD FILE GeLITIL DIR
0 PERS DIR
ill IN
AGENDA
MAYORS OF SAN LUIS OBISPO COUNTY CITIES
APRIL 179 1997 - 12:00 P.m.
RAMONA GARDEN PARK CENTER
"3 RAMONA AVENUE, GROVER BEACH
1. Confirmation of Time and Place for the Joint 7-Cities Meeting on June 5,
1997, including Agenda
2. Proposed Ballot Measure - '/s cent Sales Tax Increase
3. P.G. &E. Deregulation for January, 1998
4. County Policies Toward Development Within Cities Urban Reserve Line
APP.-14-1997 1159 FP,ON 1 TY OF P I SNO BEACH TO 9—e 1657 P.02
AGENDA
SPECIAL JOINT MEETING OF ?4
THE CITY COUNCILS ON t
SAN LUIS OBISPO COUNTY
(HOSTED BY ARROYO GRANDE, GROVER BEACH AND PISMO BEACH)
*SOCIAL HOTIR- 6:ooP.Az*+*
THURSDAY, JUNE 5, 1997AT 7.00 P.M
CUFF'SHOTEL, 27S7SH.ELLB"CHROAD
PISMO BEA C Hp CALIFORNIA
SPECIAL MEETING PROTOCOL
Pismo Hach mayor John Brows WM Chair be meeting
Tba'mi m mooing suit!b4m promptly at 7M p n-.and sd mm tm later gm t t-no pm
rublic t;oamuat wiil be limimd to three U%'Zta Per spealccr with aUW d30 iniout
• nue to the wF nrmbar Of Qty CoanWaso nbe„Meyoa and CmWelm®hees an
stem®mtxeme.m s. Its uza w or cm.ghaem1, Wi4m w io 7D�° � d to limit the omnp,�and a
' �Pr�am will be limited to tar mhamts 0 e4 tiY the t aau.he a she may indicate so by mWogtlydr hmd.
MWOM WM need to be n4fied by act cmmril. Maya Brown WM rotcenpe each erdka"VOLnive May M who iatwm win pttx:,.-..
w a voce afld tW CAD>ne9. In order m feailitate Ibis pr=$,,dircturioa m&vjdual
m the Iaege.mmdw ofelccmd ammak PraaL thouid be limited m ami due
1• CALL TOO Fit _Mayor John Brown,Pismo Beach
2. IWOCATMN
3• PLEDGE Orr,'AT,r .[moi NCE
4. R L Af,L:
CWV ofRrrovo .rm.de C*y dao afGranaBeads
MgyorA.K."Pare parrgal! dt`ayorRayJohnson MayarRobertl{eed
Michael Lady Hamld L Carden III Dee Smarr
A,rzchtm1 Faller George Luria eyuyHenry Ir "Gene"Grates
ThomasA Runel; Jerry L.Clay,Sr. ,Keith
Crow Talley Kerr wih Lerno ltonaldArnoldsen
City afPaan Rob er Qb ofPftmn RENA
MayvrCathy Novak MayorDuane.J Plcancoo
Rodgerytdcmon Tom Bamn MayorJohn Brown
Dave ZUfottMarian Mellow
Wa&er J.Maddin Hal NaUn
Wi11:cm Peirar Lee Swanson MURabenah*
Janice Peters Christian E Iversen
MaryAmReiss
170 of&n r_ l,t
MaWPAllen X Selrle
D111 Roalman
Dave Ramem
Dodre Williams
1CathySmith
APR-14-1997 11;59 FROM r�;IT'i OF PISNO BEACH TO 9-4 _X657 P.OJ
AGENDA
JOINT SAN LUIS OBISPo COUNTY CITIES'MnTjNG
JUNE 5,1997-6lo0 P11L,
PAGE 2 OF 3
$- Mayor John Brown, Pismo Beach
Introduction of invited Ruesa:Counev of San Luis Obispo Board ofSupervraora,A"c:nldyman Iom
BOtdanam.Congressman Walter Copps,.Senator Jack O'Connell
&• PIMLIC COALNEN'T PER=
This i$the time at which members of the public may address the Joint City Councils. When
rrcogntzeasplease come to the podium and state your name and cityof?widewe- Comments are to be
limited to 3 minutes.
7. ACTION
7-A LEGISLATION REGARDING CIZY.REVEN UE NEEDS AND
RESTORATION OF REVENLrES TAKEN BY THE STATE -Mayor Allen
Settle, San Luis Obispo
At770N.-Approve kner to State legislators and the Governor to be signed by the mayors of all
seven citie-e
77MR:
7-B URBAN RESERVE LINE -Mayor Allen Settle, San Luis Obispo
AC170N.•
Tlbffi}
7-C PG&E ACCELERATED DEPRECIATION OF DIABLO CANYON -Mayor
Cathy Noval;Morro Bay
Impact on cilies,county and school disaieu of PG&E's accelerated depreciation of Diablo
Canyon
ACTION.•
TIME:
7-D COUNTY WIDE SALES TAX-Mayor Bob Reed, Grover Beach
County wide salts tax to be used for sireeu and highways,
I7ME: .
APR-14-1997 11:59 FP.OM IT'i OF P!SP10 BEACH TO 9 9657 P.04
ACE,NDA
JOINT SAN LUIS OBISPO COUNTY CITIES'MEETING
JANE 5.IM-0:00 P.1M.,
PAGE30F3
8. LNIMMATI
8-A PUBLTC VDUCATION-GOVERNMENT(PEG)ACCESS ON CABLE TV-
Mayor Cathy Nov*Morro Bay
Report
TIME:
8-B' E.V.C.-ECONOMIC VITALITY COUNCEL-Mayor Cathy Nuvak Morro
Bay
Report on CDBG funds and revoh-fng loons.
TIME:
S-C AB 939 WASTE DIVERSION GOALS -rNMA Staff and Mayor John BIOWd1;
Pismo Beach
Report on progrese toward allainmeni ofAB 939 waste dtvercirm gnaTs.
TINGE.
9. AD lOL NMED(T.
TOTAL P.04
AN ANALYSIS OF OPTIONS AND METHODS TO
FUND THE MAINTENANCE & IMPROVEMENT
OF THE LOCAL & REGIONAL TRANSPORTATION SYSTEM
Focused on implementation of the Local Option Sales Tax
What is the problem?
1 . The ability of the government to raise taxes to pay for all public purposes,
including transportation improvements,has been limited since the late 1970's by
significant legal challenges, including Proposition 13 which limited the use of the
property tax as a primary method of funding improvements, and Proposition 62 which
established the 2/3 voter approval requirement for special taxes. In 1995, the State
Supreme Court ruled in the Guardino decision that a sales tax increase for a specific
purpose required a 2/3rd vote.
2. Since the mid 1980's the need to increase funding at the local, regional and state
level for transportation system maintenance and improvement has been recognized
throughout California. In response, a number of laws were enacted by the State
Legislature providing counties with the authority to raise their local sales tax to provide
funding for these purposes. Every jurisdiction in the region is not spending sufficient
funding to adequately maintain their street and road system.
3. SLOCOG staff recently prepared an analysis of countywide local street and road
maintenance needs for all jurisdictions in the region and found that there was about a$48
million total existing backlog of needed maintenance that could not be carried out within
currently limited funding.
4. In late 1989 SLOCOG funded a countywide public opinion survey to determine if there
would be support for a Measure to be placed on the 1990 ballot that would increase the
local sales tax by '/s cent. A steering committee was formed and significant information
on the issue was developed; but the effort was abandoned when polling data questioned
whether a measure could succeed. The survey found that voters would give the highest
level of support for a ''/z cent increase in the sales tax if a portion of the funding was used
on the following priorities:
• 76%support for maintenance of existing streets and roads;
• 720%support for protecting open space;
• 68% support for road and highway improvements;
• 68% support for construction of an interchange at Highway 1 and Cuesta College;
• 63% support for widening Route 46 East to four lanes.
• 68%support for providing express bus service between San Luis Obispo and outlying
communities.
5. Since 1994 the voters in nineteen counties (an area with over 90 percent of the state
population)have approved increases in the sales tax to pay for transportation system
improvements, or these two were overturned by the counts: a.5%increase in Monterey
County in 1989; and a.5% increase in Santa Clara County in 1992.
What are the legal issues?
1. The Transactions and Use Tax Law, in the California Revenue and Taxation Code, allows
a"District"(including any county,transit district,traffic or transportation authority or
agency, and other lawfully established authority or agency) to impose an increase in the
state sales tax for general or specific purposes, and to issue limited obligation bonds using
the revenue to repay the bonds.
2. The combined rate of all taxes imposed pursuant to this law in any county may not be
more than 1.5 percent,and may be imposed in increments of 5 or 1 percent increments;
any increase may remain in effect for no more than 20 years.
3. Between 1984 and 1990 the voters of nineteen counties approved sales tax increase
measures for transportation purposes. Of these, fifteen were approved with less than a
two thirds vote.
4. Following the passage of Proposition 13,the Supreme Court upheld in the Richmond
Decision an increase in the sales tax in Los Angeles that was approved by less than a two-
thirds vote. The court had reasoned that Proposition 13 was directed at reforming local
property taxes and did not apply to the sales tax.
5. In 1986, Proposition 62 was approved by the voters; it required a two-thirds voter
approval for special taxes and a majority vote for general taxes.
6. There has been continuing controversy over particular provisions of Proposition 62,
particularly in regard to whether the requirement for a two-thirds vote for a special tax
applied to an agency which did not have property tax powers.
7. In 1987 the Revenue and Taxation Code was modified by the legislature and approval of
the Governor with the passage of SB 142 (Deddah) specifically in regard to how
transportation authorities could impose an increase in the sales tax.
8. SB 142 enacted the Local Transportation Authority and Improvement Act which
authorized any county board of supervisors to create or designate a local transportation
authority, and authorized it to impose a retail sales tax of up to 1%with a two-thirds vote
of the authority and subsequent approval of a majority of the voters.
. 9. The issue of majority versus two-thirds vote for special taxes continued without complete
resolution until 1995,when the State Supreme Court, in the Guardino decision,
invalidated a sales tax approved by a majority but less than two-thirds of the voters in
Santa Clara County in a 1992 election.
10. The difference in opinion by the Supreme Court between the Richmond and Guardino
decisions was based on the provisions of Proposition 62 rather than Proposition 13 and
that the Santa Clara tax violated Proposition 62 because the Local Transportation
Authority was a"district"and the tax was a"special tax"requiring approval by a two-
thirds vote of the electorate.
What are our options?
1. At the Federal level,the reauthorization of the Intermodal Surface transportation
Efficiency Act of 1991 (ISTEA)is expected to occur by the end of 1997. While there has
been some discussion of providing increased flexibility in the use of Federal funding, and
in providing nominal fund increases through changes in formulas,no major increase in
funding is expected.
2. It appears unlikely the State Legislature will by itself enact legislation increasing the gas
tax or the state sales tax to pay for transportation improvements. In fact,recent history
has shown that at the state level there is no desire to increase taxes of any kind. The State
reaction has been to provide local and regional entities the authority needed to increase
taxes as necessary by local action.
3. A major legislative effort to reform the State Transportation Improvement Program
(STIP) process has been ongoing for the past two years led by Senator Kopp. The current
version of his bill (SB45) will, if enacted into law, provide additional flexibility to local
jurisdictions for the use of State gas tax funds but does not provide an increase in
funding.
4. Since additional funding probably won't or can't be provided at the State or Federal level,
the practical conclusion to make is that local and regional agencies must take more
responsibility to pay for the maintenance and improvement of their transportation system
via general funds, assessment districts, developer fees, or regional sales taxes.
5. State law does provide for a local option fuel tax increase with approval of the
Supervisors, a majority of the city councils which represent a majority of the population
and a two thirds approval of the electorate. Such a tax is considered very difficult if not
impossible to implement in an area like San Luis Obispo County. It has been estimated
that it would take a 20 cent increase in the fuel tax to provide the same revenue as a ''/Z
cent increase in the sales tax. No local option gas tax measure has ever been approved.
. 6. The means of raising funding for transportation improvements that is the most technically
feasible,politically appropriate, and most acceptable to the public is to seek an increase in
the sales tax, either for a specific purpose(requiring a two-thirds vote) or a general
purpose (requiring a majority vote).
7. The amount of new revenue which would be produced annually in San Luis Obispo
County from a '/�percent increase in the sales tax is approximately$10 million, at 1
percent it would produce approximately $20 million.
e
What is the impact of recent elections?
1. In 1996, Santa Clara County successfully received voter approval of a 5 % increase in the
local sales tax for general purposes (a major portion of which is likely to be expanded on
transportation system maintenance and improvements based on the results of the
companion advisory measure):
a) The Santa Clara County measures were successful because of the use of
complimentary measures (A&B), the first of which was an"advisory expenditure
plan", and the second which actually raised the sales tax by .5%.
b) Measure A in Santa Clara, which was an advisory measure asking the voters what
transportation system improvement priorities they would support for the use of any
new sales tax revenue won by 73%. Measure B, which raised the sales tax by .5% for
general purposes passed by 52%.
c) The Santa Clara measures were carefully presented to the voters without an`official"
promise linking the two measures,thereby minimizing the possibility of successful
legal challenges based on state law concerning imposition of special taxes.
d) The success of the Santa Clara County methodology in the 1996 election required the
cities and the county to develop a close and trusting relationship since the county is
the entity imposing the tax and allocating the revenue. There can be no formal
agreement between the two entities as to how the increased sales tax revenue will be
spent due to the possibility of a legal challenge based on the tax being for a special
purpose.
e) Information received from Santa Clara county staff indicates that no challenges to the
measures will be made by the Gann/Proposition Group since they accept their
legitimacy within the scope of state law,the Guardino Decision, and Prop 62.
2. Locally, in southern San Luis Obispo County, on March 4, 1997, the voters in the Lucia
Mar Unified School District overwhelmingly (by 74.5%) approved a$24 million school
bond issue to construct new school facilities.
3. The success of the Lucia Mar bond issue, which raised property taxes by $28 per
$100,000 in assess valuation, was attributed to the fact that the need was well defined and
communicated, that there was a strong and well organized community based campaign.
Conclusions
1. Increasing the local sales tax for general purpose,based on the Santa Clara County
method used in November, 1996, appears to be well grounded in law, and may have the
most potential for success in providing funding for needed transportation system
maintenance improvements.
2. Based on the trend in State and Federal government policies, it is becoming necessary for
action at the local (county) level to provide the additional funding necessary for the
maintenance and improvement of the transportation system.
3. Statewide data shows that the success of the vast majority of sales tax increase measures
(70%)was primarily due to the measure being carefully designed based on
comprehensive initial public opinion poling and follow-up tracking polls,and a clearly
defined expenditure plan based on the polling data including only those projects that have
broad based support and excluding any project that would be opposed by any segment of
the population.