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02-19-2013 b1 consiers midyr budget review
counci lj accnba nepont m ..0 Va, 2-19-1 3 B 1 • C I T Y O F S A N L U I S O B I S P O FROM : Katie Lichtig, City Manage r Wayne Padilla, Director of Finance & Information Technolog y SUBJECT : 2012-13 MID-YEAR BUDGET REVIE W RECOMMENDATIO N 1.Review and discuss the City's financial condition and status of Major City goals at the mid - point of 2012-13 . 2.Approve revenue and expenditure changes presented in the accompanying Mid-Year Budge t Review document . DISCUSSIO N The City's two-year Financial Plan process calls for the submittal of a formal financial statu s report to the Council every six months . The accompanying Mid-Year Budget Review for 2012-1 3 meets this requirement and provides a comprehensive overview of the City's fiscal condition at th e mid-point of the current fiscal year. Background : Purpose of the Mid-Year Budget Review For routine fiscal monitoring, all departments have on-line access to real time accountin g information . Financial reports are issued monthly to key staff members and quarterly fmancia l reports are distributed to the Council and staff . Additionally, the Finance and Informatio n Technology (IT) Department issues regular reports to the Council and staff and the community o n key revenues such as sales tax, transient occupancy tax and investments, as well as ad hoc reports a s needed. The preparation and submittal of a formal financial review at the mid-point of the fiscal yea r provides an opportunity to take a broader look at the City's financial picture and identif y recommended adjustments to make the original 2012-13 budget reflect current assumptions an d trends . Report Organizatio n The accompanying Mid-Year Budget Review is organized into five main sections : Section A :Transmittal Memorandum :Provides a narrative overview of the City's fisca l environment and a narrative of key changes made to revenue projections as a resul t of this review . Section B:Financial Condition Summaries :Provides comprehensive presentations and updates of projected revenues and expenditures based on staffs best and mos t prudent professional judgment . Updates beginning fund balance/working capita l balances taken from the audited 2011-12 results and projected ending balances fo r 2012-13 based on the revised budget estimates . B1-1 2012-13 Mid-Year Budget Review Page 2 Section C:Mid-Year Requests :Provides detailed supporting documentation for the requeste d mid-year budget adjustments submitted by various departments . These requests require affirmative action on the part of Council to be approved . Section D:Recent financial and revenue reports : Provides the most recent quarterly financia l report, quarterly Sales Tax newsletter, and monthly TOT report . Section E:Status of Goals and Objectives :Provides a report on Major City Goals, Othe r Council Objectives, and the status of major Capital Improvement Plan (CIP) projects . This includes recommended "Action Plan" revisions as discussed in th e report . Summary of Mid-Year Budget Review Result s After reviewing the City's audited results for 2011-12, along with available data regardin g current fiscal circumstances, the mid-year review revealed the following key adjustments to th e original 2012-13 budget : 1.2012-13 General Fund revenue projections have been updated and key changes are describe d on page A3 of the Transmittal Letter contained in the Mid-Year Budget Report . On-going revenue sources reflect both increases and decreases that resulted in a net increase o f approximately $577,000 while an increase in one-time revenues totaling $1 .2 million was also identified . These changes resulted in a 3 .4% overall increase in revenue over th e original budget . 2.The beginning General Fund balance for 2012-13 was nearly equal to the estimated fun d balance that was reported to the City Council in December 2012 . As a result of staff's consideration of the 2011-12 audited results, it became apparent that the presented, estimate d ending fund balance for 2012-13 included both restricted and unrestricted amounts . The restricted amounts include Encumbrances (budgeted and committed expenditures totalin g $1,395,872), Carryover (unused) Appropriations ($883,400), and Debt Service Reserve s ($602,800). This results in an estimated, unrestricted fund balance above the 20% fun d balance policy amount of $2 .6 million which is available for one-time expenditures . While the Mid-Year Budget Review primarily focuses on programs and projects financed throug h the General Fund, it does contain relevant information regarding any projected changes affecting th e City's enterprise funds . Consistent with the City's policy of annually reviewing the enterprise fun d rates, a comprehensive analysis will be presented in June 2013 addressing rate and revenue issues i n the Water, Sewer, Parking, and Transit fund . After evaluating the fiscal environment described above, along with the submissions of th e various departments, staff recommends that the City Council should consider and approve on e operating and four CIP requests as part of this Mid-Year Budget Review . Together these request s total $846,500 for 2012-13 affecting the General Fund, Water, Sewer, and Parking Fund as follows : • • • B1-2 2012-13 Mid-Year Budget Revie w Request by Projects Page 3 • • • Operating Program Chang e Projt Cost ;.Fungi:. Water Master Plan $232,000 Water Fund Capital Improvement Plan (CI P Project . ,Cost-and Damon Garcia Parking Lot Removal $75,000 General Fund Global Positioning System Replacement $70,000 All Fund s 16-inch Waterline Replacement $370,000 Water Fund Jennifer Street Railroad Crossing & Higuera/Marsh Sewerline Rerouting $99,500 Sewer Fun d Total Cost $846,50 0 Total Request by Fun d General Fund $94,600 Parking Fund $12,600 Water Fund $614,600 Transit Fund $12,600 Sewer Fund $112,100 Major City Goal Updat e The report also includes a status report for Major City Goals and the steady progress towar d accomplishment of the work program as defmed by the Council . ATTACHMEN T Mid-Year Budget Review for 2012-13 B1-3 2011-13 Financial Pla n MID-YEAR BUDGET REVIEW : 2012-1 3 JAN HOWELL MARX, MAYO R KATHY SMITH, VICE-MAYO R JOHN ASHBAUGH, COUNCIL MEMBE R DAN CARPENTER, COUNCIL MEMBE R ANDREW CARTER, COUNCIL MEMBE R KATIE LICHTIG, CITY MANAGER Prepared by the Department of Finance & Information Technolog y Wayne Padilla, Interim Director/City Treasure r Brigitte Elke, Principal Administrative Analys t Rachel McClure, Administrative Analys t Jennifer Thompson, Acting Revenue Superviso r city of san Luis oBlspo TABLE OF CONTENTS A Transmittal Memorandum Enterprise Funds • Water B-42 Overview A-1 Sewer B4 3 Financial Condition Summary A-2 Parking B-44 Mid-Year Budget Requests A-4 Transit B-45 Status of Goals and Objectives A-5 Whale Rock Reservoir B-46 Conclusion A-5 B . Financial Condition Summaries Park Hotel Fund B-47 C. Mid-Year Budget Request s Revenues by Fund B-1 Operating Programs B-8 Summary of Mid-Year Budget Requests C-1 Operating Programs C-2Capital Improvement Pla n Interfund Transactions B-15 Capital Improvement Plan CA Operating Transfers B-19 D . Recent Financial and Revenue Report s Reimbursement Transfer s Changes in Financial Position B-21 Sales Tax Newsletter : Third Calendar Quarter 2012 D-1 Combined Statements Monthly TOT Report : December 2012 D-3 All Funds Combined B-22 Quarterly Investment Report : Governmental Funds B-23 September 2012 D-4 Enterprise and Agency Funds B-24 Quarterly Investment Report : General Fun d Special Revenue Funds B-25 December 201 2 E. Status of Goals and Objectives D-14 • Downtown Business Improvement B-2 6 Tourism Businacs Improvement B-27 Introduction E-1 Gas Tax B-28 Status of Major City Goals E-3 Transportation Development Act B-29 Status of Other Council Objectives E-1 9 CDBG B-30 Address as Resources Permit E-3 1 Law Enforcement Grant Fund B-31 Carryover Goals and Objectives E-33 Capital Project Funds Status of Major CIP Projects E-3 5 Public Art Fund B-3 2 Capital Outlay B-3 3 Parkland Development B-3 4 Transportation Impact Fee B-3 5 Open Space Protection B-3 6 Airport Area Impact Fee B-3 7 Affordable Housing B-3 8 Fleet Replacement B-3 9 LOVR Sub-Area Fee Fund B-4 0 Debt Service Fund B41 • B1-6 Section A TRANSMITTAL MEMORANDUM B1-7 TRANSMITTAL MEMORANDUM •February 19, 201 3 TO : Mayor and City Counci l FROM : Katie Lichtig, City Manage r Wayne Padilla, Interim Director of Financ e SUBJECT : MID-YEAR BUDGET REVIEW FO R 2012-1 3 OVERVIEW The City's Budget and Fiscal Policies call for a formal financial status report to the Council for ever y six-month period. The Mid-Year Budget Review meets this requirement and allows the Council to tak e a broader look at the City's financial picture at the mid-point of the fiscal year . This report provides : 1.An update to the beginning fund balanc e projections based on actual audited results from the prior fiscal year . 2.An analysis of revenue trends since adoption o f the Financial Plan, and revision of revenue an d ending fund balance projections accordingly . 3.Identification of any issues requiring Counci l attention, and recommendations for correctiv e action or additional funding if required . The mid-year review also provides an opportunity t o give the Council a formal update on the status of th e Major City Goals program, Capital Improvement Plan (CIP) projects and other objectives . All Funds Reviewe d This mid-year budget review primarily focuses o n programs and projects fmanced through th e General Fund, but it does contain basic numerica l information regarding any projected change s affecting the City's other funds, including th e enterprise funds . Staff has reviewed th e projections for these funds to ensure that they ar e structurally balanced . Consistent with the City's policy of annually reviewing the enterprise fund rates, a comprehensive analysis will be presente d in June 2013 addressing rate and revenue issue s in the Water, Sewer, Parking, and Transit funds . Summary of Findings and Conclusion s After reviewing the City's actual financial result s from 2011-12 and analyzing the current fiscal year-to - date revenue and expenditure trends, staff applie d their best and most prudent professional judgment t o confirm the revenue and expenditure projections fo r the rest of the fiscal year . The following point s highlight the major changes that have been made t o the original General Fund revenue and expenditur e projections compared to the adopted 2012-13 budget : 1.General Fund revenues received through January were compared to receipts from 12 months ag o and a forecast of future revenues for the next 5 months was developed in order to determine th e annual revenues to be derived from each revenue source . The key changes in the revenue forecas t that resulted from this analysis are describe d starting on page A-3 below . On-going revenu e sources increased by a total of $577,000 and one - time revenues increased by $1,240,000 compare d to the original budget . The forecast for majo r revenues shown in this document represent s growth trends that are in line with those provide d by both HdL and Beacon Economics . 2.The beginning General Fund balance was nearl y equal to the estimated fund balance that was reported to the City Council in December 2012 . 3.This mid-year update continues the assumptio n that there will be savings equal to 2% of operatin g expenses . 4.While the national news indicates that a n economic recovery has begun, there are stil l concerns that both locally owned and nationa l chain stores are sensitive to even small changes i n consumer spending habits as evidenced by th e recent announcement that Barnes & Noble ma y shutter over 200 stores nationwide . The continuing discussion on how the federal government will manage its fiscal policies an d avoid the "Fiscal Cliff' has serious implication s for local government . Chief among these concern s are the potential creation of unfunded mandate s and a loss of available grant funding that has traditionally supported local programs . Staff is constantly monitoring sales tax reporting an d other trend information in an effort to learn of an y A-1 B1-8 • • TRANSMITTAL MEMORANDU M •changes that may occur to the city's revenue trends . 5 . In general, staff has only proposed mid-year budget requests that need to be considered now in order t o meet timing requirements or adequately fun d current programs . Accordingly, only one operatin g program changes and four Capital Improvemen t Projects are submitted for Council consideratio n during this Mid-Year Review totaling $846,500 o f which $94,600 are General Fund related . Continuing Actions to Achieve and Maintain Fisca l Health and Sustainabilit y 1.Hiring Chill . A hiring "chill" remains in plac e requiring all hiring actions, even routin e replacements to be approved by the City Manage r through a City Manager Report . This action i s important because salary savings due to vacan t positions represent the greatest portion of saving s achieved in the budget each year . 2.Use One-Time Savings Only for One-Tim e •Expenses or Projects .Maintaining a minimu m fund balance level provides the City with a firs t line of defense when adverse circumstances arise . City policy calls for the maintenance of Genera l Fund reserve balance of at least 20% of operatin g expenses for the year . Expenditure savings o r one-time revenue increases add to the Genera l Fund balance but are short term and canno t support ongoing increases in expenditures. 3.Reinvesting in Capital Assets.As the Genera l Fund unrestricted fund balance increases due t o recurring savings and the gradually improving economy, it is important to re-invest in the City's capital assets which have historically been funde d on a pay-as-you-go basis . During the "Grea t Recession" the funding for CIP and equipmen t replacement programs were reduced substantiall y and fell considerably short of the level required t o maintain and replace the City's infrastructure an d equipment . If positive trends hold and become more defmitive, staff will likely recommen d greater funding of CIP, the fleet replacement fun d along the newly established IT equipmen t replacement fund with the 2013-15 Financia l Plan . In the meantime, staff will develop • recommendations to Council for possible long - term strategies to stabilize funding fo r infrastructure and equipment replacement. FINANCIAL CONDITION SUMMAR Y General Fund Balance Change s Beginning FY 2012-13 Fund Balance.Based on th e 2011-12 audited financial statement, the beginnin g General Fund balance of $12,907,900 was $1,427,30 0 greater than projected in the 2011-13 Financial Plan . This was due primarily to lower than anticipate d expenditures, since revenues were more tha n $500,000 below estimates . Most of the expenditure savings came from staffing savings, largely due t o position vacancies during the year . These positions were filled or are likely to be filled in the curren t fiscal year. It is important to note that while th e beginning fund balance exceeded the origina l estimate, the fund balance used in the forecast for th e 2012-13 year includes the reserve for encumbrance s ($1,395,872 million), the carryover appropriation s ($883,400) and the debt service reserve ($602,800) fo r a total of $2,882,072 million in restricted balances. As a result, the estimated 2012-13 fund balance above minimum reserve levels of $5 .1 million presented i n December 2012 combined restricted and unrestricted balances, leaving an estimated $2 .6 million as a one - time funding source . Projected FY 2012-13 Ending Financial Condition . Based on the current financial projections, the Cit y will exceed its 20% unrestricted reserve level requirement throughout the 2011-13 Financial Pla n period . As mentioned above, the reserve amount i n excess of the 20% requirement, estimated at $2 .6 million, is available for one-time projects an d programs . General Fund Revenues Included in Section B of this report is a summary o f revenues by fund and major source that provide s actual results for 2011-12, original budgeted amount s for 2012-13 along with revised projections an d respective variances for each source . Based on thi s Mid-Year Review, overall projections for 2012-1 3 General Fund revenues are now anticipated to b e about $1 .8 million higher than projected in the 2011 - A-2 B1-9 TRANSMITTAL MEMORANDUM •13 Financial Plan, with approximately $1 .2 million o f that amount representing one-time revenues fro m grants and the sale of property . The followin g summarizes the most significant General Fun d revenue trends : 1.General Sales Tat Based on the latest forecas t provided by HdL, general sales tax receipts wil l increase approximately will increase b y approximately $480,000 over the original budge t forecast . Compared to the prior year, genera l sales tax receipts will reflect an increase o f $716,000 . 2.Measure Y Sales Tat Using the HdL forecas t for Measure Y Sales Tax revenue, the mid-yea r revision reflects an increase in receipts o f approximately $60,000 compared to the origina l budget and in increase of $103,000 over the prio r year . For the sake of consistency, the five yea r forecast reflects the continuation of Measure Y revenue which would require voter approval beyond March of 2015 . 3.Property Tat This revenue source came i n slightly less than expected in 2011-12 when actua l receipts were approximately $62,000 less than th e budget . The largest portion of that decrease cam e from the VLF in-lieu revenue that was $59,00 0 below the budget estimate . The mid-year projection reflects another small decrease of $18,000 from the original budget which is related to the lower amount of VLF in-lieu revenues tha t will be received, based on the January installmen t which is equal to 50% of the annual total . Compared to the 2011-12 year, property ta x revenues are forecast to increase by $44,000 . Staff continues to monitor property value trends t o ensure that growth in assessed values is in lin e with the economist's forecast . 4.Transient Occupancy Tax (TOT).TOT exceede d projections in 2011-12 and continues to show gains of almost 6% during the first six months of 2012-13 which supports the current budget forecast which assumed a growth rate of 3 .3 % over last year . 5.Franchise Fees.In 2011-12, Franchise Fee s came in approximately 1 .6% or $41,000 below th e budget estimate. This year Franchise Fees ar e forecast to increase by $38,000 over the prior year but will be $25,000 below the original budge t forecast . 6.Utility Users Tax (UUT).Last year, UU T receipts were 6 .4% or $314,000 less than forecast . While the mid-year revision's forecast reflect s growth over the prior year amount totalin g $78,000 the revised forecast is $276,000 less tha n the original budget for this year . Following th e update to the UUT Ordinance, staff issued letter s to all known phone service providers serving thi s area to advise them of the revised ordinanc e which changed certain fees and charges that ar e subject to the tax and lowered by .2% the tax on telecommunications and video services, and thei r obligation to collect and report the UUT to th e city. The new tax rate will become effective o n April 1, 2013 . 7.Interest on Investments .Staff recently reviewe d the performance of the investment portfolio with the city's investment advisor and then calculate d the estimated interest earnings for the next 6 months using a separate forecast of ending cas h balances for each fund . This interest calculatio n took into account the turnover of investments tha t will occur based on their maturity dates and th e current low rates of return that are available fro m any new, legally permissible investments that ma y be acquired to replace those that matured . The resulting forecast shows a sharp decrease i n interest earnings as the result of the steady declin e in the number of higher yielding investments fro m the city's portfolio as they mature over time an d are replaced with equally credit worthy but lowe r yielding investments . By prudent use of a n investing strategy that uses a ladder system o f grouping investment purchases and maturit y dates, the city has thus far been able to extend th e period of time from which it was able to enjo y above-average yields on its investments compare d to current market conditions . Due to the tim e constraints imposed by state law that limits th e maximum period of time that an investment ca n be held to no more than 5 years and the fact that most of these higher yielding investments have o r are about to mature, the city is now facing a period of time when the portfolio is weighted wit h mostly lower yielding investments until such tim e as the credit market and the Federal Open Marke t Committee see fit to effect changes that result i n A-3 B1-10 • • TRANSMITTAL MEMORANDU M •an increase in interest yields on permissibl e investments . As a result of these conditions, the forecast fo r interest on investments reflects a sharp decline i n the forecast compared to both the prior year (a decline of $87,000) and the original budget (a decline of $384,000). With the focus of the city's investment efforts being directed at the primary goal of protectin g the invested principal through the use of hig h quality investments, staff will continue to look fo r permissible investments and strategies tha t position the city's portfolio to begin capturin g higher returns at the earliest opportunity . 8.Other Subventions and Grants .These revenues include funding from state and federal sources . The mid-year forecast reflects an increase in thi s revenue category of $360,000 to reflect Mutua l Aid Reimbursements that are expected for claim s that were filed by the Fire Department . I n addition, the unused portion of the previousl y • awarded Strategic Growth Council Grant for th e update of the Land Use and Circulation Elemen t Plan update was added to the budget in th e amount of $818,090 . 9.Development Review Fees .Revenues collected through January 2013 are well ahead of expectations . The mid-year forecast reflect s adjustments to account for the fees alread y received and those anticipated to be received during the current year from propose d development activity . These adjustments includ e the following : Plannin_ & Zoning +$99,00 0 Buildin_ Permits +$169,00 0 Plan Check +$145,00 0 Infrastructure Plan Check -$150,000 It is important to point out that developmen t related revenues are cyclical in nature and ver y difficult to predict . It is for these reasons tha t future years' forecasts are based on staff's expectation of when development projects wil l begin to generate fees and not on the assumptio n • that past results represent a continuing an d reliable revenue trend. A-4 B1-1 1 10 .Other Revenues.This category includes sales of city-owned property of which there has been on e significant transaction . The mid-year forecas t reflects the addition of $422,000 to the budgete d revenue from the sale of the Chinatown Property . As is the case with all sales of real property, thi s is considered to be a one-time revenue source . Operating Programs Section B includes an overview of changes to th e operating program budgets . Organized by fund, thes e schedules include the original budget, re - appropriations for encumbrances and carryovers, an d budget changes to-date since approval of the 2011-1 3 Financial Plan in June 2011 . These summaries als o reflect the mid-year budget requests, which ar e discussed below. Capital Improvement Pla n This part of Section B reflects the original CI P budgets for 2012-13 by fund, re-appropriations fo r encumbrances and carryovers, and budget changes to - date since approval of the 2011-13 Financial Plan i n June 2011 . These summaries include mid-year budge t requests, which are discussed below . Inter-Fund Transaction s This portion of Section B reflects actual inter-fun d transfers for 2011-12 along with the original budget and revisions for 2012-13 . The revised operatin g transfers are generally driven by other changes in th e mid-year budget review . Reimbursement transfers do not reflect any changes at this time . Projected Fund Balances/Working Capital Based on the revised revenue projections an d expenditures summaries, this part of Section B includes a summary of projected changes in financia l position for each of the City's operating funds . As with the revenue projections, the changes in financia l position schedules include the actual fund balances/working capital for 2011-12 and the original budget and revised projections for 2012-13 . MID-YEAR BUDGET RE I UEST S TRANSMITTAL MEMORANDUM •As noted previously, mid-year budget requests focus o n areas that need to be approved now in order to meet timing requirements or adequately fund curren t programs through the end of the fiscal year . Supportin g documentation that fully justifies the need for thes e adjustments is provided in Section C, summarized a s follows. Operating Program s There is one operating program mid-year budge t request for Council consideration from the Water Fund for a Water master Plan update in connectio n with the LUCE update costing $232,000 in 2012-13 . Capital Improvement Plan (CIP) There are four CIP mid-year budget requests totaling $614,500 in 2012-13 . One request is funded through the General Fund, two pertain to Water and Sewe r projects, and one combines funding from all fiv e funds . STATUS OF GOALS AND OBJECTIVE S Section E of this report provides a formal look at th e status of Major City Goals, Other Council Objectives and Major CIP Projects as of February 1, 2013 . As reflected in the report, with about 80% of the two-yea r Financial Plan period completed, progress on th e various goals ranges from 30 - 90% complete base d on the respective "action plans ." Other Mid-Year Budget Review Issue s Staff will be bringing a recommendation before th e City Council during the April 9th Strategic Budge t Policy Session to address the retrospective liability insurance program payment plan that must b e established before July 1". The obligation to mak e this payment, which represents a surcharge to al l members of the California Joint Powers Insuranc e Authority (CJPIA), is the result of that body's retrospective adjustment of its liability insurance pool . The total surcharge levied against the City is $3 .1 million. Staff is currently assessing the City's option s for incorporating the payment of this surcharge int o the fiscal forecast . This issue is being raised here as a n informational item only . CONCLUSIO N The Budget Review Team and Department Heads wil l be prepared to respond to any questions the Counci l may have regarding this report at the February 19 , 2013 meeting . If you have any questions in th e interim, or require additional information, please do not hesitate to contact Interim Finance D irecto r Wayne Padilla at 781-7125 . A-5 B1-12 • • Section B FINANCIAL CONDITION SUMMARIES B1-13 REVENUES BY MAJOR CATEGORY AND SOURC E SUMMARY BY FUND GOVERNMENTAL FUND S General Fund 53,688,654 53,676,300 55,543,800 1,867,50 0 Special Revenue Funds 3,696,038 3,053,500 3,497,153 443,65 3 Capital Project Funds 3,095,421 1,015,300 6,687,575 5,672,27 5 Total Governmental Funds 60,480,113 57,745,100 65,728,528 7,983,42 8 ENTERPRISE FUND S Water Fund 17,090,010 16,752,100 17,418,700 666,60 0 Sewer Fund 14,998,155 15,492,400 15,607,500 115,10 0 Parking Fund 3,682,250 7,586,700 4,863,100 (2,723,600) Transit Fund 3,830,437 3,339,900 4,545,637 1,205,73 7 Whale Rock Reservoir Fund 840,576 898,900 898,900 Total Enterprise Funds 40,441,428 44,070,000 43,333,837 (736,163) TOTAL $100,921,541 $101,815,100 $109,062,365 $7,247,265 • • • B-1 B1-1 4 REVENUES BY MAJOR CATEGORY-AND SOURC E • GENERAL FUND Tax Revenues Sales & use ta x General 13,289,950 13,528,000 14,006,292 478,29 2 Measure Y 6,237,468 6,279,800 6,340,000 60,200 Public safety (Proposition 172)307,429 284,600 284,60 0 Property tax 8,367,088 8,370,200 8,370,20 0 Transient occupancy tax 5,222,004 5,395,000 5,395,00 0 Utility users tax 4,584,055 4,938,100 4,662,740 (275,360 ) Property tax in-lieu of VLF 3,492,361 3,551,000 3,533,189 (17,811 ) Franchise fees 2,462,349 2,523,000 2,498,027 (24,973 ) Business tax 1,837,548 1,923,100 2,050,000 126,900 Real property transfer tax 143,985 180,000 180,000 Total Tax Revenues 45,944,237 46,972,800 47,320,048 347,248 Fines & Forfeiture s Vehicle code fines 138,724 127,600 127,600 Other fines & forfeitures 35,607 35,000 39,650 4,65 0 Total Fines & Forfeitures 174,331 162,600 167,250 4,650 • Investment and Property Revenues Investment earnings 429,511 514,700 130,000 (384,700) Rents & concessions 158,940 180,800 159,000 (21,800 ) Total Investment & Property 588,451 695,500 289,000 (406,500) Subventions & Grant s Motor vehicle license fees 45,75 2 Homeowners & other in-lieu taxes 37,632 75,000 38,000 (37,000) Other in-lieu taxes 21,296 21,500 21,721 22 1 SB 90 reimbursements 6,077 8,900 8,90 0 Police training (POST)46,732 30,000 50,000 20,00 0 Mutual aid reimbursements 196,300 360,000 360,00 0 COPS grant AB3229 100,000 100,000 100,00 0 State Office of Traffic Safety (OTS ) Zone 9 reimbursements 29,600 95,000 85,000 (10,000) Other state & federal grants 126,710 839,352 839,352 Total Subventions & Grants 610,099 321,500 1,502,973 1,181,473 Service Charge s Police Services Accident reports 2,648 3,000 3,00 0 Collision investigation 13,326 12,000 12,00 0 Alarm permits and false alarm fees 102,455 90,000 70,000 (20,000 ) DUI cost recovery 21,354 30,000 20,000 (10,000 ) Tow release fee 15,233 14,000 14,000 Booking fee recovery 370 Tobacco permit fees 22,075 20,000 20,000 Administrative citations 221,519 165,000 155,000 (10,000 ) •Parking citations - PD issued 107,461 80,000 80,00 0 Other police services 167,964 115,500 134,200 18,70 0 Total Police Services 674,405 529,500 508,200 (21,300) B-2 B1-1 5 REVENUES BY MAJOR CATEGORY AND SOURC E GENERAL FUND • Fire Service s Cal Poly fire services 259,544 265,000 265,000 Medical emergency recovery 163,558 164,000 166,600 2,600 Fire safety/haz mat permits 142,315 130,000 127,000 (3,000 ) Multi-dwelling unit inspections 188,621 188,700 188,700 CUPA fees 84,514 95,000 92,000 (3,000 ) Other fire services 62,344 45,000 29,600 (15,400 ) Total Fire Services 900,896 887,700 868,900 (18,800) Development Revie w Planning & zoning fees 386,019 400,000 499,900 99,90 0 Building Permits 530,288 515,000 684,700 169,70 0 Construction plan check & inspections 367,894 335,000 419,900 84,90 0 Infrastructure plan check & inspections 789,066 500,000 350,000 (150,000 ) Encroachment permits 139,962 150,000 150,00 0 Fire plan check & inspections 149,574 127,000 150,000 23,00 0 Waterways management plan fees 4,445 8,800 (8,800 ) Other Development Fees 86,525 106,400 106,40 0 Total Development Review 2,453,773 2,035,800 2,360,900 325,100 Parks & Recreation • Adult athletic fees 149,558 122,400 122,40 0 Youth athletic fees 34,948 33,700 33,70 0 Skate park fees 3 1 Instruction fees 102,032 83,900 83,90 0 Special event fees 96,782 92,700 92,70 0 Rental & use fees 197,191 174,500 174,500 Children services 614,505 511,600 511,600 Teens & seniors 3,509 500 50 0 Aquatics 240,382 217,500 217,500 Golf 297,635 292,700 292,700 Other recreation revenues 5,103 3,000 (11,137)(14,137 ) Total Parks & Recreation 1,741,676 1,532,500 1,518,363 (14,137) General Governmen t Business license 450,630 443,400 443,400 Sales of publications 8,435 5,000 5,000 Other service charges 55,391 15,000 35,149 20,14 9 Total General Government 514,456 463,400 483,549 20,14 9 Total Service Charges 6,285,206 5,448,900 5,739,912 291,01 2 Other Revenue s Insurance refunds 12,579 10,000 10,000 Other revenues 73,751 65,000 514,617 449,61 7 Total Other Revenues 86,330 75,000 524,617 449,617 •Total General Fund $53,688,654 $53,676,300 $55,543,800 $1,867,500 B-3 B1-1 6 REVENUES BY MAJOR CATEGORY AND SOURC E SPECIAL REVENUE FUND S Downtown Business Improvement District Fund #21 0 Service Charges 199,396 200,000 200,000 Tourism Business Improvement District Fund #29 0 Investment & Property Revenues 2,609 3,000 3,000 Other Revenue 3,72 0 Service Charges 1,049,886 1,055,000 1,055,000 Tourism BID Fund 1,056,215 1,058,000 1,058,000 Community Development Block Grant Fund #24 0 Subventions & Grants 1,037,840 506,600 950,253 443,653 Gas Tax Fund #22 0 Subventions & Grants 1,311,179 1,233,800 1,233,800 In March 2010,the Legislature passed ABx8 6 and ABx8 9, which contained the provisions for a swap o f Proposition 42 state sales tax on gasoline with allocations from the motor vehicle excise tax (gas tax). Transportation Development Act Fund #23 0• Subventions & Grants 34,843 26,200 26,20 0 Law Enforcement Grant Fund #25 0 Investment & Property Revenues 657 900 90 0 Service Charges 1,145 2,000 2,00 0 Total Law Enforcement Grant Fund 1,802 2,900 2,90 0 Public Art Contributions Fun d Investment & Property Revenues 6,073 6,000 6,00 0 Service Charges 48,690 20,000 20,00 0 Total Public Art Contributions Fund 54,763 26,000 26,000 Proposition 42 Fund Subventions and Grants In March 2010,the Legislature passed ABx8 6 and ABx& 9, which contained the provisions for a swap o f Proposition 42 state sales tax on gasoline with allocations from the motor vehicle excise tax (gas tax). • Total Special Revenue Funds 3,696,038 3,053,500 3,497,153 443,653 B-4 B1-1 7 REVENUES BY MAJOR CATEGORY AND SOURC E CAPITAL PROJECT FUNDS • Origina l htaI Budget .,.. Capital Outlay Fund #40 0 Subventions & Grant s State of California Traffic safety gran t SLTPP/STP grant 210,664 210,664 STP/SHA - RRTC 90,316 1,421,395 1,421,395 Safe routes to school 37,304 740,462 740,462 Other state grants 26,000 40,000 316,980 276,980 Federal Government Highway & bridge rehabilitation &38,503 596,699 596,699 replacement (HBRR ) Transportation enhancement (TEA ) Other federal grants 337,990 143,912 143,91 2 Service Charge s Zone 9 reimbursements 241,703 280,000 560,867 280,867 Other Revenue s Contributions Other Revenue Total Capital Outlay Fund 771,816 320,000 3,990,979 3,670,979 • Parkland Development Fund #420 Investment & Property Revenues 19,130 18,000 18,00 0 Subventions & Grants Service Charge s Park in-lieu fees 8,341 10,000 10,00 0 Dwelling unit charge 1,650 1,000 1,00 0 Other Revenue - Impact Fees 30,144 Total Parkland Development Fund 59,265 29,000 29,00 0 Transportation Impact Fee Fund #405 Investment & Property Revenues 66,373 65,500 65,500 Subventions & Grants 212,085 530,000 2,531,296 2,001,29 6 Impact Fees 412,04 8 Other Revenue 2,234 Total Transportation Impact Fee Fund 692,740 595,500 2,596,796 2,001,296 Fleet Replacement Fund #41 0 Investment & Property Revenues 32,371 21,800 21,800 Other Revenues 10,000 10,000 Sale of surplus property Total Fleet Replacement Fund 32,371 31,800 31,800 • B-5 B1-1 8 REVENUES BY MAJOR CATEGORY AND SOURC E • CAPITAL PROJECT FUND S Open Space Protection Fund #43 0 Investment & Property Revenues 3,336 500 50 0 Subventions & Grant s Service Charges Total Open Space Protection Fund 3,336 500 50 0 Airport Area Impact Fee Fund #45 0 Investment & Property Revenues 16,993 16,500 16,50 0 Service Charges 11,28 0 Total Airport Area Impact Fee Fund 28,273 16,500 16,50 0 Affordable Housing Fund #47 0 Investment & Property Revenues 21,915 20,000 20,00 0 Subventions & Grant s Service Charges 848,78 8 Total Affordable Housing Fund 870,703 20,000 20,000 Los Osos Valley Road Sub-Area Fee Fund #46 0 Investment & Property Revenues 12,155 2,000 2,000• Service Charges 624,762 Total Los Osos Valley Road Sub-Area Fee F 636,917 2,000 2,000 Total Capital Project Funds 3,095,421 1,015,300 6,687,575 5,672,275 • B-6 B1-1 9 REVENUES BY MAJOR CATEGORY AND SOURC E ENTERPRISE FUNDS Water Fund #50 0 Investment & Property Revenues 338,590 186,200 262,000 75,80 0 Service Charges 15,509,053 16,527,800 17,126,700 598,90 0 Other Revenues 1,242,367 38,100 30,000 (8,100) Total Water Fund 17,090,010 16,752,100 17,418,700 666,600 Sewer Fund #52 0 Investment & Property Revenues 208,426 128,600 128,60 0 Service Charges 14,743,627 15,360,200 15,472,300 112,100 Other Revenues 46,102 3,600 6,600 3,000 Total Sewer Fund 14,998,155 15,492,400 15,607,500 115,100 Parking Fund #51 0 Fines & Forfeitures 536,669 694,600 694,60 0 Investment & Property Revenues 359,659 88,900 88,90 0 Service Charges 2,780,945 6,803,200 4,079,600 (2,723,600 ) Other Revenues 4,97 7 Total Parking Fund 3,682,250 7,586,700 4,863,100 (2,723,600 ) Transit Fund #53 0 Investment & Property Revenues 24,150 5,700 5,700 Subventions & Grants 3,253,716 2,691,500 3,916,337 1,224,83 7 Service Charges 626,495 637,700 618,600 (19,100 ) Other Revenues (73,924)5,000 5,000 Total Transit Fund 3,830,437 3,339,900 4,545,637 1,205,73 7 Whale Rock Commission #640 Investment & Property Revenues 22,293 14,100 14,100 Service Charges 817,540 884,800 884,800 Other Revenues 743 Total Whale Rock Commission Fund 840,576 898,900 898,90 0 Total Enterprise & Agency Funds $40,441,428 $44,070,000 $43,333,837 ($736,163) • • • B-7 B1-2 0 OPERATING PROGRAM S • SUMMARY BY FUN D General Fun d Public Safety $ 24,849,000 $ 202,200 $ 62,700 $25,113,90 0 Transportation 3,267,800 116,500 13,300 3,397,60 0 Leisure, Cultural & Social Services 7,199,200 59,800 (8,400)7,234,10 0 Community Development 6,023,400 1,273,600 67,900 7,364,90 0 General Government 12,662,200 653,000 248,000 13,563,20 0 Total General Fund 54,001,600 2,305,100 383,500 56,673,70 0 Downtown BID Fund 200,000 200,00 0 Tourism BID Fund 992,000 67,300 1,059,30 0 CDBG Fund 243,500 1,000 666,953 911,45 3 Water Fund 13,264,300 759,500 (276,300)232,000 13,747,50 0 Sewer Fund 6,543,100 721,100 7,264,20 0 Parking Fund 2,003,200 97,600 2,100,80 0 Transit Fund 2,855,700 133,600 2,989,30 0 Whale Rock Fund 803,000 112,000 915,00 0 Total All Funds Combined .$ 80,906,400 $ 4,197,200 $ 774,153 $ 232,000 $85,861,253 • • B-8 B1-2 1 OPERATING PROGRAM S PUBLIC SAFETY POLICE PROTECTIO N Administration 1,738,700 85,000 (52,500)1,771,20 0 Neighborhood/Crime Prevent Services 256,600 256,60 0 Support Services 2,341,000 35,700 61,200 2,437,90 0 Investigative Services 2,494,300 2,494,30 0 Traffic Safety 958,200 2,100 960,30 0 Patrol Services 7,277,800 17,800 7,295,60 0 Total Police Protection 15,066,600 120,700 28,600 15,215,90 0 FIRE AND ENVIRONMENTAL SAFET Y Administration 772,300 25,200 (12,900)784,60 0 Emergency Response 8,247,800 5,500 45,600 8,298,90 0 Hazard Prevention 630,400 630,40 0 Training 102,400 50,800 153,20 0 Technical Services 19,800 1,400 21,200 Disaster Preparedness 9,700 9,700 • Total Fire and Environmental Safety 9,782,400 81,500 34,100 9,898,000 TOTAL PUBLIC SAFETY 24,849,000 202,200 62,700 25,113,900 • B1-22 B-9 OPERATING PROGRAM S PUBLIC UTILITIE S WATER SERVIC E Water Source of Supply 7,940,000 (276,300)7,663,700 Water Treatment 2,317,900 127,500 2,445,400 Water Distribution 1,168,200 25,100 1,193,300 Water Customer Service 331,100 331,100 Utilities Conservation Office 382,300 36,500 418,800 Water Taxes & Fees 562,000 562,000 Water Administration/Engineering 562,800 570,400 232,000 1,133,200 Total Water Service 13,264,300 759,500 (276,300)232,000 13,747,500 SEWER SERVIC E Wastewater Collection 1,086,600 500 1,087,100 Wastewater Pretreatment 234,300 234,300 Water Reclamation Facility 3,302,000 62,700 3,364,700 Water Quality Laboratory 474,300 14,000 488,300 Wastewater Taxes & Fees 522,800 522,800 Wastewater Administration/Engineering 923,100 643,900 1,567,000 Total Sewer Service 6,543,100 721,100 7,264,200 •WHALE ROCK RESERVOI R Reservoir Operations S03,000 112,000 915,000 TOTAL PUBLIC UTILITIES 20,610,400 1,592,600 (276,300)232,000 21,926,700 • B-10 B1-2 3 OPERATING PROGRAM S TRANSPORTATION • TRANSPORTATION MANAGEMEN T Transportation Planning & Eng 615,900 104,600 (8,600)711,90 0 STREET S Streets & Sidewalk Maintenance 1,314,400 700 8,300 1,323,40 0 Traffic Signals & Street Lights 524,800 700 (1,700)523,80 0 Total Streets 1,839,200 1,400 6,600 1,847,20 0 CREEK AND FLOOD PROTECTIO N Operations & Maintenance 812,700 10,500 15,300 838,50 0 PARKING Operation, Maintenance & Enforcement 2,003,200 97,600 2,100,800 MUNICIPAL TRANSIT SYSTE M Operations and Maintenance 2,855,700 133,600 2,989,300 TOTAL TRANSPORTATION 8,126,700 347,700 13,300 8,487,700 • • B1-24 B-1 1 • OPERATING PROGRAM S LEISURE, CULTURAL & SOCIAL SERVICE S PARKS AND RECREATIO N Recreation Programs Recreation Administration 725,700 1,600 727,30 0 Aquatics/Sinsheimer Park Facilities 334,700 334,70 0 Youth Services 902,300 902,30 0 Facilities 218,800 218,80 0 Community Services 256,900 256,90 0 Recreational Sports 285,500 2,000 2,500 290,00 0 Teens, Seniors & Classes Ranger Services 238,700 12,000 250,700 Golf Course Operation & Maintenance 554,800 300 555,100 Total recreation programs 3,517,400 3,535,800 Maintenance Services Landscape and Park Maintenance 2,315,400 21,000 (2,900)2,333,500 Swim Center Maintenance 436,800 400 (1,100)436,100 Tree Maintenance 407,900 700 (1,600)407,000 Total maintenance services 3,160,100 22,100 (5,600)3,176,600 • Total Parks and Recreation 6,677,500 59,800 (8,400)6,712,400 CULTURAL SERVICE S Cultural Activities 284,000 284,000 SOCIAL SERVICE S Human Relations 237,700 237,700 TOTAL LEISURE,CULTURAL &SOCIAL SERVICES 7,199,200 59,800 (8,400)7,234,100 • B-l2 B1-2 5 OPERATING PROGRAMS • COMMUNITY DEVELOPMENT PLANNIN G Commissions & Committees 33,900 33,900 Community Development Admin 499,100 84,000 28,500 611,600 Development Review 527,500 400 22,800 550,70 0 Long Range Planning 520,700 1,089,200 12,700 1,622,600 Housing 243,500 1,000 666,953 911,45 3 Total Planning 1,824,700 1,174,600 730,953 3,730,25 3 CONSTRUCTION REGULATIO N Building and Safety 1,160,500 9,200 2,400 1,172,10 0 CIP Project Engineering 1,780,200 400 1,100 1,781,70 0 Engineering Development Review 405,700 400 406,10 0 Total Construction Regulation 3,346,400 9,600 3,900 3,359,900 NATURAL RESOURCES PROTECTIO N Natural Resources Protection 351,400 300 351,700 ECONOMIC HEALTH • Economic Development 296,600 21,300 317,900 Community Promotion 447,800 68,800 516,60 0 Downtown Business Improvement District 200,000 200,00 0 Tourism Business Improvement District 992,000 67,300 1,059,30 0 Total Economic Health 1,936,400 157,400 2,093,80 0 TOTAL COMMUNIT Y DEVELOPMENT 7,458,900 1,341,900 734,853 9,535,653 • B-13 B1-2 6 OPERATING PROGRAM S • GENERAL GOVERNMEN T LEGISLATION AND POLIC Y City Council 133,400 133,400 GENERAL ADMINISTRATIO N City Administration 654,700 39,500 (26,200)668,000 City Clerk Services 421,500 3,000 424,500 Public Works Administration 913,500 144,600 (37,800)1,020,300 Total General Administration 1,989,700 187,100 (64,000)2,112,800 LEGAL SERVICE S City Attorney 540,000 75,200 354,400 969,60 0 ORGANIZATIONAL SUPPORT SERVICE S Human Resources Administration 568,500 27,800 (16,800)579,50 0 Risk Management 2,502,900 2,502,90 0 Finance & IT Administration 315,700 80,000 31,700 427,40 0 Accounting 617,500 19,100 636,60 0 Revenue Management 878,500 5,500 (31,700)852,30 0 Support Services 208,100 60,200 (66,500)201,800 Network Services 2,263,100 174,800 2,437,900 Geographic Information Services 446,900 6,100 453,00 0 Total Organizational Services 7,801,200 373,500 (83,300)8,091,40 0 BUILDINGS AND EQUIPMEN T Building Maintenance 1,055,600 16,500 40,000 1,112,10 0 Fleet Maintenance 1,142,300 700 900 1,143,90 0 Total Buildings and Equipment 2,197,900 17,200 40,900 2,256,00 0 TOTA L GENERAL GOVERNMENT 12,662,200 653,000 248,000 13,563,200 • B-14 B1-2 7 CAPITAL IMPROVEMENT PLAN :ALL FUNDS COMBINE D SUMMARY OF CHANGES BY FUND Capital Outlay 3,570,900 5,246,506 302,408 94,600 9,119,81 4 Parkland Development 1,334,628 1,334,62 8 Fleet Replacement 291,200 128,472 419,67 2 CDBG 329,300 (224,300)105,00 0 Law Enforcement Block Grant 2,861 (1,139)1,72 2 Transportation Impact Fee 275,000 4,980,434 278,802 5,534,23 6 Open Space Protection 22,500 573,392 595,89 2 Public Art Private Sector 186,773 186,77 3 Airport Area Impact Fee 320,453 320,45 3 LOVR Sub-Area Fee 236,365 236,36 5 Affordable Housing 650,000 650,00 0 Water 200,000 1,337,321 39,116 382,600 1,576,43 7 Sewer 970,000 4,610,440 1,111,323 112,100 6,691,763 Parking 195,000 1,653,304 12,600 1,848,304 Transit 1,017,559 (14,753)12,600 1,002,806 Whale Rock 605,316 605,31 6 Total $5,853,900 $22,883,824 $1,491,457 $614,500 $30,229,181 • B-15 • • B1-2 8 CAPITAL IMPROVEMENT PLAN :ALL FUNDS COMBINE D • SUMMARY OF NET CIP BUDGET ADJUSTMENT S Capital Outlay Fund (General Fund #400) • • B-16 17,11 2 10,00 0 3,60 0 64,79 0 8,30 0 9,75 0 24,99 2 12,34 7 6,88 3 6,81 1 9,82 6 21,83 5 3,95 0 7,49 9 61 0 54 5 1,51 0 27,91 5 4,88 1 176,422 6,25 7 49,770 1,659 17,645 1,75 9 4,58 1 22,71 0 12,500 6,045 23,520 600 16,975 34,865 398,43 6 37,000 11,71 8 3,16 5 4,146 7,49 7 23,98 0 62,50 0 15,52 2 13,57 8 33 9 79,67 8 14,834 139,75 0 148,642 33,700 14,75 3 (16,502 ) 36,23 0 (7,183 ) (23,212 ) (2,835 ) (14,305 ) (6,630) B1-29 CAPITAL IMPROVEMENT PLAN :ALL FUNDS COMBINED 21,11 3 Carryover 3,934,536 • Subtotal Capital Outlay Fund 5,246,506 302,40 8 CDBG Fund (#240) (224,300 ) Subtotal CDBG Fund (224,300 ) Open Space Protection Fund (#430 ) Carryover 573,39 2 Subtotal Open Space Protection Fund 573,39 2 Law Enforcement Grant Fund (#250 ) Carryover 2,861 (1,139 ) Subtotal Law Enforcement Grant Fund 2,861 (1,139 ) Public Art in Lieu Fund (#260 ) Carryover 186,77 3 Subtotal Public Art in Lieu Fund 186,77 3 Transportation Impact Fee Fund (#405) 2,678 371,664 2,100 (92,862 ) 1,75 8 3,27 2 673,51 2 Carryover 4,297,11 4 Subtotal Transportation Impact Fee Fund 4,980,434 278,802 Fleet Replacement Fund (#410) 28,000 15,909 27,11 2 Carryover 57,45 1 Subtotal Fleet Replacement Fund 128,472 Parkland Development Fund (#420) 34,502 Carryover 1,300,126 Subtotal Parkland Development Fund 1,334,62 8 Airport Area Impact Fee Fund (#450) 2,73 2 Carryover 317,72 1 Subtotal Airport Area Impact Fee Fund 320,45 3 LOVR Sub-Area Fee Fund (#460 ) Carryover 236,36 5 Subtotal LOVR Sub-Area Fee Fund 236,36 5 Affordable Housing Fund (#470 ) Carryover 650,00 0 Subtotal Affordable Housing Fund B-17 650,000 B1-3 0 CAPITAL IMPROVEMENT PLAN : ALL FUNDS COMBINE D •Water Fund (#500 ) 6,963 75,00 0 12,995 (35,884) 12,99 5 36 8 74 9 185,35 0 10,94 6 39,99 0 2,40 0 147,00 1 21,91 7 Carryover 895,64 7 Subtotal Water Fund 1,337,321 39,11 6 Sewer Fund (#520) 7,450 (14,390) 10,946 75,000 69,235 653,000 17,470 4,000 500 90,880 3,720 28,444 680 (35,884 ) 7,350 (54,677 ) 70 460,000 1,358 (95,050 ) 856,93 5 •163,596 185,35 0 345,000 21,91 7 Carryover 2,918,863 Subtotal Sewer Fund 4,610,440 1,111,32 3 Parking Fund (#510) 19,242 4,295 40,23 6 3,300 9,05 1 Carryover 1,577,180 Subtotal Parking Fund 1,653,304 Transit Fund (#530) 413,239 (14,753 ) 409,73 8 Carryover 194,58 2 Subtotal Transit Fund 1,017,559 (14,753) Whale Rock Commission (#640) 46 5 Carryover 604,85 1 Subtotal Whale Rock 605,316 • B-18 B1-3 1 INTERFUND TRANSACTION S OPERATING TRANSFERS • General Fund (#100 ) Operating Transfers I n Gas Tax Fund 1,311,179 1,233,800 1,233,80 0 TIM Fund 34,843 26,200 26,20 0 Tourism BID Fund 41,511 21,100 21,10 0 Sewer Enterprise Fund 14,39 0 Parking Fund 100,000 100,00 0 Total operating transfers in 1,387,533 1,281,100 1,395,490 100,00 0 Operating Transfers Ou t Transportation Impact Fee Fund Community Development Block Grant (53,564)(45,000)(45,000) Capital Outlay Fund (3,417,800)(3,250,900)(3,290,100)(39,200 ) Open Space Protection Fund (305,000)(22,500)(22,500) Fleet Replacement Fund (500,000)(700,000)(700,000) Debt Service Fund (2,437,244)(2,637,500)(2,637,500) Total operating transfers out (6,713,608)(6,655,900)(6,695,100)(39,200) Net Operating Transfers (5,326,075)(5,374,800)(5,299,610)75,19 0 Gas Tax Fund (#220) Operating Transfer Out • General Fund (1,311,179)(1,233,800)(1,233,800 ) Transportation Development Act Fund (#230) Operating Transfer Ou t General Fund (34,843)(26,200)(26,200) Community Development Block Grant (#240) Operating Transfer I n General Fund 53,564 45,000 45,000 Park Hotel Fund 21,200 21,200 Total operating transfers 53,564 66,200 66,200 Park Hotel Fund (#635 ) Operating Transfer Ou t CDBG Fund (21,200)(21,200 ) Tourism Business Improvement District Fund (#290) Operating Transfer Ou t General Fund (41,511)(21,100)(21,100) Capital Outlay Fund (#400 ) Operating Transfer I n General Fund 3,417,800 3,250,900 3,290,100 39,20 0 Net Operating Transfers 3,417,800 3,250,900 3,290,100 39,200 • B-19 B1-32 INTERFUND TRANSACTION S • OPERATING TRANSFER S Open Space Protection Fund (#430 ) Operating Transfer I n General Fund 305,000 22,500 22,50 0 Fleet Replacement Fund (#410 ) Operating Transfers I n General Fund 500,000 700,000 700,00 0 • • Debt Service Fund (#300 ) Operating Transfer I n General Fund 2,437,244 2,637,500 2,637,50 0 Parking Fund (#510) Operating Transfer Ou t General Fun d Sewer Enterprise Fund (#520 ) Operating Transfer Ou t General Fun d NET OPERATING TRANSFERS (100,000) (100,000 ) (14,390) (14,390) B-20 B1-33 INTERFUND TRANSACTION S REIMBURSEMENT TRANSFER S General Fund (3,774,900)(3,732,100)(3,732,100) Enterprise and Agency Fund s Water 1,309,400 1,316,700 1,316,700 Sewer 1,354,300 1,394,100 1,394,100 Parking 533,700 508,600 508,60 0 Transit 476,500 416,900 416,90 0 Whale Rock Commission 101,000 95,800 95,80 0 Total Enterprise and Agency Funds 3,774,900 3,732,100 3,732,100 NET REIMBURSEMENT TRANSFERS $ • • B-21 B1-3 4 CHANGES IN FINANCIAL POSITIO N •ALL FUNDS COMBINE D Revenue s Tax Revenues 45,944,236 46,972,800 47,320,048 347,24 8 Fines and Forfeitures 711,000 857,200 861,850 4,650 Investment and Property Revenues 1,496,188 1,259,100 928,400 (330,700 ) Subventions and Grants 7,160,787 5,323,400 13,845,618 8,522,21 8 Service Charges Governmental Funds 8,693,006 6,996,900 7,311,912 315,01 2 Enterprise Funds 34,745,432 39,328,900 37,297,200 (2,031,700) Trust and Agency Revenues 840,575 898,900 898,900 Other Revenues 391,109 131,700 576,217 444,51 7 Total Revenues 99,982,333 101,768,900 109,040,145 7,271,24 5 Expenditures Operating Programs Public Safety 23,953,319 24,849,000 25,113,900 (264,900) Public Utilities 18,71 1,288 20,610,400 21,926,656 (1,316,256 ) Transportation 7,299,725 8,126,700 8,487,660 (360,960 ) Leisure, Cultural, & Social Services 6,704,245 7,199,200 7,234,100 (34,900 ) Community Development 6,986,182 7,458,900 9,535,601 (2,076,701 ) General Government 11,950,048 12,662,200 13,563,200 (901,000 ) Total Operating Programs 75,604,807 80,906,400 85,861,117 (4,954,717 ) Capital Projects 16,970,027 5,853,900 30,229,189 (24,375,289 ) •Debt Service 8,599,529 9,345,700 9,345,70 0 Total Expenditures 101,174,363 96,106,000 125,436,006 (29,330,006) Other Sources (Uses ) Operating Transfers In 8,121,208 7,958,200 8,111,790 153,590 Operating Transfers Out (8,101,133)(7,937,000)(8,090,590)(153,590) Proceeds from Debt Financings 5,416,50 0 Potential MOA Adjustments 1,622,800 1,622,80 0 Other Sources (Uses)392,049 (2,400,000)2,400,00 0 Expenditure Savings (5,571,500)79,300 (79,300) Total Other Sources (Uses)257,124 (676,700)1,644,000 (2,320,700) Revenues and Other Sources Over (under ) Expenditures and Other Uses (934,906)4,986,200 (14,751,861)(19,738,061 ) Fund Balance/Working Capita l Beginning of Year 67,027,982 41,424,600 64,538,345 23,113,74 5 Fund Balance/Working Capital End of Yea r Reserved for Debt Service 2,017,900 2,285,700 2,017,900 (267,800) Unreserved 64,075,176 44,125,100 47,768,584 3,643,48 4 Total Fund Balances $66,093,076 $46,410,800 $49,786,484 $3,375,684 • *See page B-48 for explanation . B-22 B1-3 5 CHANGES IN FINANCIAL POSITIO N ALL GOVERNMENTAL FUNDS COMBINED • Revenues Tax Revenues 45,944,236 46,972,800 47,320,048 347,248 Fines and Forfeitures 174,331 162,600 167,250 4,65 0 Investment and Property Revenues 770,106 849,700 443,200 (406,500) Subventions and Grants 3,943,020 2,631,900 9,929,281 7,297,38 1 Service Charges 8,693,006 6,996,900 7,311,912 315,01 2 Other Revenues 299,484 85,000 534,617 449,61 7 Total Revenues 59,824,183 57,698,900 65,706,308 8,007,40 8 Expenditures Operating Program s Public Safety 23,953,319 24,849,000 25,113,900 264,90 0 Transportation 2,865,100 3,267,800 3,397,603 129,80 3 Leisure, Cultural, & Social Services 6,704,245 7,199,200 7,234,100 34,90 0 Community Development 6,986,182 7,458,900 9,535,601 2,076,70 1 General Government 11,950,048 12,662,200 13,563,200 901,000 Total Operating Programs 52,458,894 55,437,100 58,844,404 3,407,304 Reimbursed Expenditures (3,774,900)(3,732,100)(3,732,100 ) Total Operating Expenditures 48,683,994 51,705,000 55,112,304 3,407,304 Capital Improvement Plan Projects 11,410,746 4,488,900 18,504,559 14,015,65 9 Debt Service 2,705,050 2,637,500 2,637,500 Total Expenditures 62,799,790 58,831,400 76,254,363 17,422,963 Other Sources (Uses)• Operating Transfers In 8,121,208 7,958,200 8,111,790 153,590 Operating Transfers Out (8,101,133)(7,937,000)(7,976,200)(39,200) Proceeds from Debt Financings 5,416,50 0 Potential MOA Adjustments 1,585,000 1,585,000 Other Sources (Uses) Expenditure Savings (5,571,500) Total Other Sources (Uses)(134,925)1,606,200 1,720,590 114,39 0 Revenues and Other Sources Over (under ) Expenditures and Other Uses (3,110,532)473,700 (8,827,465)(9,301,165 ) Fund Balance, Beginning of Year 31,513,506 19,531,500 25,348,745 5,817,24 5 Fund Balance, End of Yea r Reserved for Debt Service 2,017,900 2,285,700 2,017,900 (267,800 ) Unreserved 26,385,074 17,719,500 14,503,380 (3,216,120 ) Total Fund Balances $28,402,974 $20,005,200 $16,521,280 (3,483,920) • * See page B-48 for explanation. B-23 B1-3 6 • CHANGES IN FINANCIAL POSITIO N ALL ENTERPRISE AND AGENCY FUNDS COMBINE D Revenues Fines and Forfeitures 536,669 694,600 694,600 Investment and Property Revenues 726,082 409,400 485,200 75,80 0 Subventions and Grants 3,217,767 2,691,500 3,916,337 1,224,83 7 Service Charges 34,745,432 39,328,900 37,297,200 (2,031,700 ) Other Revenues 91,625 46,700 41,600 (5,100 ) Trust and Agency Revenues 840,575 898,900 898,900 Total Revenues 40,158,150 44,070,000 43,333,837 (736,163 ) Expenditures Operating Programs Public Utilities 18,711,288 20,610,400 21,926,656 1,316,25 6 Transportation 4,434,625 4,858,900 5,090,057 231,15 7 Leisure, Cultural, & Social Service s General Government 3,774,900 3,732,100 3,732,100 Total Operating Programs 26,920,813 29,201,400 30,748,813 1,547,41 3 Capital Projects 5,559,281 1,365,000 11,724,630 10,359,63 0 Debt Service 5,894,479 6,708,200 6,708,200 Total Expenditures 38,374,573 37,274,600 49,181,643 11,907,04 3 Other Sources (Uses ) Operating Transfers I n Operating Transfers Out (114,390)(114,390) Proceeds from Debt Financing s Expenditure Savings 79,300 (79,300 ) Other Sources (Uses)392,049 (2,400,000)2,400,00 0 Potential MOA Adjustments 37,800 37,800 Total Other Sources (Uses)392,049 (2,282,900)(76,590)2,206,31 0 Revenues and Other Sources Over (under ) Expenditures and Other Uses 2,175,626 4,512,500 (5,924,396)(10,436,896 ) Working Capital, Beginning of Year 35,514,476 21,893,100 39,189,600 17,296,50 0 Fund Balances, End of Year $37,690,102 $26,405,600 $33,265,204 6,859,604 * See page B-48 for explanation. B-24 B1-3 7 CHANGES IN FINANCIAL POSITIO N GENERAL FUND • Encumbrances:1,395,872 1,395,872 Carryover/Unused Appropriations:883,400 883,400 Fund Balance Programmed for 2012-13 costs :2,279,272 2,279,272 Revenue s Tax Revenues 45,944,236 46,972,800 47,320,048 347,24 8 Fines and Forfeitures 174,331 162,600 167,250 4,65 0 Investment and Property Revenues 588,451 695,500 289,000 (406,500 ) Subventions and Grants 610,099 321,500 1,502,973 1,181,47 3 Service Charges 6,285,206 5,448,900 5,739,912 291,012 Other Revenues 86,330 75,000 524,617 449,61 7 Total Revenues 53,688,653 53,676,300 55,543,800 1,867,500 Total Resouces Available in Current Year :55,955,572 57,823,07 2 Expenditures Public Safety 23,953,319 24,849,000 25,113,900 (264,900 ) Transportation 2,865,100 3,267,800 3,397,603 (129,803 ) Leisure, Cultural, and Social Services 6,704,245 7,199,200 7,234,100 (34,900) Community Development 5,514,256 6,023,400 7,364,857 (1,341,457) General Government 11,950,048 12,662,200 13,563,200 (901,000) Total Program Expenditures 50,986,968 54,001,600 56,673,660 (2,672,060 ) Reimbursed Expenditures (3,774,900)(3,732,100)(3,732,100 ) Total Expenditures 47,212,068 50,269,500 52,941,560 (2,672,060)• Other Sources (Uses) Transfers In 1,407,600 1,281,100 1,395,490 114,39 0 Transfers Out (6,713,600)(6,655,900)(6,695,100)(39,200 ) Proceeds from Debt Issuance/Premium 5,386,30 0 Other financing use - defeasance (5,571,500 ) Cost of debt issuance (207,000 ) MOA & Other Compensation Adj .540,900 540,90 0 Expenditure Savings 1,585,000 1,585,00 0 Total Other Sources (Uses)(5,698,200)(3,248,900)(3,173,710)75,19 0 Revenues and Other Sources Over (Under)Expenditures and Other Uses 778,385 2,437,172 1,707,802 (729,370) Fund Balances, Beginning of Year 12,907,900 10,963,800 10,804,213 (159,587) Fund Balances, End of Year $13,686,285 $13,400,972 $12,512,015 ($888,957) Fund Balance Components : Total Fund Balance:$13,686,285 Encumbrances :($1,395,872) Carryover/Unused Appropriations:($883,400 ) Debt Service Reserve:($602,800 ) Unrestricted Fund Balance :$10,804,213 $12,512,01 5 Policy Reserve Level @ 20%$9,160,900 $9,884,000 Amount Over (Under) Policy Reserve $1,643,313 $2,628,015 • * See page B-48 for explanation .B-25 B1-38 • CHANGES IN FINANCIAL POSITIO N DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FUN D Revenues Investment and Property Revenue s Service Charges 199,396 200,000 200,000 Total Revenues 199,396 200,000 200,000 Operating Expenditures Community Development 200,407 200,000 200,00 0 Total Expenditures 200,407 200,000 200,00 0 Other Sources (Uses ) Operating Transfers I n Revenues and Other Sources Over (Under ) Expenditures and Other Uses (1,011 ) Fund Balance, Beginning of Year 2,300 1,200 1,289 8 9 Fund Balance, End of Year $1,289 $1,200 $1,289 $89 • • * See page B48 for explanation . B-26 B1-3 9 CHANGES IN FINANCIAL POSITIO N TOURISM BUSINESS IMPROVEMENT DISTRICT FUND Revenues Investment and Property Revenues 2,609 3,000 3,00 0 Service Charges 1,053,586 1,055,000 1,079,000 24,000 Total Revenues 1,056,195 1,058,000 1,082,000 24,000 Operating Expenditure s Community Development 1,013,219 992,000 1,059,291 (67,291 ) Total Expenditures 1,013,219 992,000 1,059,291 67,29 1 Other Sources (Uses ) Operating Transfers Out (41,511)(21,100)(21,100) Revenues and Other Sources Over (Under ) Expenditures and Other Uses 1,465 44,900 1,609 (43,291 ) Fund Balance, Beginning of Year 193,000 57,100 194,465 137,36 5 Fund Balance, End of Year $194,465 $102,000 $196,074 $94,074 • • • * See page B-48 for explanation. B-27 B1-4 0 • CHANGES IN FINANCIAL POSITIO N GAS TAX Revenue s Subventions and Grant s Gasoline Tax 1,311,179 1,233,800 1,233,800 Total Revenues 1,311,179 1,233,800 1,233,800 Other Sources (Uses ) Operating Transfers Out (1,311,179)(1,233,800)(1,233,800) Revenues and Other Sources Over (Under ) Expenditures and Other Use s Fund Balance, Beginning of Yea r Fund Balance, End of Yea r In March 20[0, the Legislature passed ABx' 6 and ABx8 9, which contained the provisions for a swap o f Proposition 42 state sales tax on gasoline with allocations from the motor vehicle excise tax (gas tax). • • * See page B-48 for explanation . B-28 81-4 1 CHANGES IN FINANCIAL POSITIO N TRANSPORTATION DEVELOPMENT ACT FUN D Revenues Subventions and Grants 34,843 26,200 26,200 Total Revenues 34,843 26,200 26,200 Other Sources (Uses ) Operating Transfers Out (34,843)(26,200)(26,200) Revenues and Other Sources Over (Under ) Expenditures and Other Use s Fund Balance, Beginning of Yea r Fund Balance,End of Year • • • * See page B-48 for explanation. B-29 B1-4 2 • • • CHANGES IN FINANCIAL POSITIO N COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS-#240/24 1 Revenues Subventions and Grant s CDBG Allocation 1,037,840 506,600 950,253 443,65 3 Total Revenues 1,037,840 506,600 950,253 443,653 Expenditures Operating Programs Community Development 258,300 243,500 911,453 (667,953 ) General Governmen t Total Operating Programs 258,300 243,500 911,453 (667,953) Capital Improvement Plan Projects 833,104 329,300 105,000 224,300 Debt Servic e Total Expenditures 1,091,404 572,800 1,016,453 (443,653) Other Sources (Uses ) Operating Transfers In 53,564 66,200 66,200 Total Other Sources (Uses)53,564 66,200 66,200 Revenues and Other Sources Over (Under ) Expenditures and Other Uses Fund Balance, Beginning of Yea r Fund Balance, End of Yea r * See page B-48 for explanation.B-30 B1-4 3 CHANGES IN FINANCIAL POSITIO N LAW ENFORCEMENT GRANT FUND • Revenues Investment and Property Revenue 700 900 900 Subventions and Grant s Federal Grant s State Grants Service Charges 1,100 2,000 2,00 0 Total Revenues 1,800 2,900 2,90 0 Expenditures Operating Programs Public Safety Total Operating Program s Capital Improvement Plan Projects 23,300 1,722 (1,722 ) Total Expenditures 23,300 1,722 (1,722) Other Sources (Uses ) Operating Transfers In Operating Transfers Ou t Total Other Sources (Uses ) Revenues and Other Sources Over (Under)• Expenditures and Other Uses (21,500)2,900 1,178 (1,722 ) Fund Balance, Beginning of Year 42,000 18,600 20,500 1,90 0 Fund Balance, End of Year $20,500 $21,500 $21,678 $178 • * See page B-48 for explanation . B-31 B1-4 4 CHANGES IN FINANCIAL POSITIO N •PUBLIC ART (PRIVATE SECTOR CONTRIBUTIONS) FUN D Revenues Investment and Property Revenues 6,073 6,000 6,000 Service Charges $48,690 In-lieu fees 20,000 20,000 Other Revenues Total Revenues 54,763 26,000 26,00 0 Expenditures Operating Programs Leisure, Cultural & Social Service s Capital Improvement Plan Projects 47,657 186,773 186,77 3 Total Expenditures 47,657 186,773 186,773 Other Sources (Uses ) Operating Transfer I n Operating Transfer Ou t Total Other Sources (Uses ) •Revenues and Other Sources Over (Under ) Expenditures and Other Uses 7,106 26,000 (160,773)(186,773 ) • Fund Balance, Beginning of Yea r Fund Balance, End of Year 366,700 166,300 373,806 207,50 6 $373,806 $192,300 $213,033 $20,733 * See page B-48 for explanation .B-32 B1-45 CHANGES IN FINANCIAL POSITION •CAPITAL OUTLAY FUND Revenues Subventions and Grants 771,817 40,000 3,710,959 3,670,95 9 Service Charges 280,000 280,00 0 Other Revenues Total Revenues 771,817 320,000 3,990,959 3,670,959 Expenditures Capital Improvement Plan Projects 8,412,300 3,570,900 9,119,814 (5,548,914 ) Total Expenditures 8,412,300 3,570,900 9,119,814 (5,548,914 ) Other Sources (Uses) Operating Transfers In 3,417,800 3,250,900 3,290,100 39,200 Operating Transfers Out Sale of Surplus Property 30 20 0 Total Other Sources (Uses)3,448,000 3,250,900 3,290,100 39,200 Revenues and Other Sources Over (Under ) Expenditures and Other Uses (4,192,483)(1,838,755)(1,838,755 ) Fund Balance, Beginning of Year 5,937,200 1,744,717 1,744,717 • Fund Balance, End of Year $1,744,717 $-$ (94,038)$ (94,038) ** Staff will not allow the projected shortfall to materialize. Before 7/1/13, staff will reconcile all appropriations an d related revenues in order to identify the source of the shortfall and then prepare the appropriate budget entries to bring the fund into balance . • * See page B-48 for explanation . B-33 B 1-4 6 CHANGES IN FINANCIAL POSITIO N •PARKLAND DEVELOPMENT FUN D Revenue s Investment and Property Revenue 19,130 18,000 18,00 0 Subventions and Grants Service Charge s Park In-Lieu Fees 8,341 10,000 10,00 0 Dwelling Unit Fees 1,650 1,000 1,00 0 Other Revenue 30,144 Total Revenues 59,265 29,000 29,00 0 Expenditure s Capital Improvement Plan Projects 214,309 1,334,629 (1,334,629) Total Expenditures 214,309 1,334,629 (1,334,629) Revenues and Other Sources Over (Under ) Expenditures and Other Uses (155,044)29,000 (1,305,629)(1,334,629) Fund Balance, Beginning of Year 1,246,700 110,100 1,091,656 981,55 6 Fund Balance, End of Year**$1,091,656 $139,100 ($213,973)($353,073) ** Staff will not allow the projected shortfall to materialize . As part of the 2013-15 Financial Plan, the budget will b e •refined to provide new revenue estimates that are based on the ultimate design/cost of the proposed projects . Th e projected shortfall is due to under-realized fund raising revenues . • * See page B-48 for explanation .B-34 B1-4 7 CHANGES IN FINANCIAL POSITIO N TRANSPORTATION IMPACT FEE FUND • Revenues Investment and Property Revenue 66,373 65,500 65,500 Subventions and Grants 212,085 530,000 2,531,296 2,001,29 6 Impact Fees (389,793 ) Other Revenue 183,01 0 Total Revenues 71,675 595,500 2,596,796 2,001,29 6 Expenditure s Capital Improvement Plan Projects 780,961 275,000 5,534,237 (5,259,237 ) Total Expenditures 780,961 275,000 5,534,237 (5,259,237) Other Sources (Uses) Operating Transfers I n Operating Transfers Ou t Total Other Sources (Uses ) Revenues and Other Sources Over (Under ) Expenditures and Other Uses (709,286)320,500 (2,937,441)(3,257,941 ) Fund Balance, Beginning of Year 4,221,100 1,231,600 3,511,814 2,280,214 • Fund Balance, End of Year $3,511,814 $ 1,552,100 $ 574,373 $ (977,727) • *See page B-48 for explanation . B-35 81-4 8 CHANGES IN FINANCIAL POSITIO N •OPEN SPACE PROTECTION FUN D Revenues Investment and Property Revenue 3,336 500 500 Subventions and Grant s Service Charges Other Revenue Total Revenues 3,336 500 500 Expenditures Capital Improvement Plan Projects 240,069 22,500 595,893 (573,393 ) Total Expenditures 240,069 22,500 595,893 (573,393) Other Sources (Uses) Operating Transfers In 305,000 22,500 22,500 Operating Transfers Out Total Other Sources (Uses)$305,000 $22,500 $22,500 Revenues and Other Sources Over (Under ) Expenditures and Other Uses 68,267 500 (572,893)(573,393 ) Fund Balance, Beginning of Year 115,100 104,800 183,367 78,567 •Fund Balance, End of Year**$183,367 $105,300 ($389,526)($494,826) ** Staff will not allow the projected shortfall to materialize . As part of the 2013-15 Financial Plan, the budget will b e refined to provide new revenue estimates that are based on the ultimate design/cost of the proposed projects . Previousl y anticipated but unrealized grant funds are no longer available but other funding sources will be explore d • * See page B-48 for explanation . B-36 81-4 9 CHANGES IN FINANCIAL POSITIO N AIRPORT AREA IMPACT FEE FUND Revenues Investment and Property Revenues 16,993 16,500 16,50 0 Service Charges 11,28 0 Total Revenues 28,273 16,500 16,50 0 Expenditure s Capital Improvement Plan Projects 35,172 320,453 (320,453 ) Other Sources (Uses) Operating Transfers Ou t Revenues and Other Sources Over (Under ) Expenditures and Other Uses (6,899)16,500 (303,953)(320,453 ) Fund Balance, Beginning of Year 1,028,400 688,800 1,021,501 332,70 1 Fund Balance,End of Year $1,021,501 $705,300 $717,548 $12,248 • • • * See page B-48 for explanation . B-37 B1-5 0 • CHANGES IN FINANCIAL POSITIO N AFFORDABLE HOUSING FUN D Revenues Investment and Property Revenues 21,915 20,000 20,00 0 Subventions and Grants Service Charges 848,78 8 Total Revenues 870,703 20,000 20,00 0 Expenditures Capital Improvement Plan Projects 112,696 650,000 (650,000) Other Sources (Uses ) Operating Transfers i n Revenues and Other Sources Over (Under ) Expenditures and Other Uses 758,007 20,000 (630,000)(650,000) Fund Balance, Beginning of Year 1,010,500 984,700 1,768,507 783,807 Fund Balance,End of Year $1,768,507 $1,004,700 $1,138,507 $133,807 • • * See page B-48 for explanation .B-38 B1-5 1 CHANGES IN FINANCIAL POSITIO N FLEET REPLACEMENT FUND • Revenues Investment and Property Revenues 32,371 21,800 21,800 Other Revenue s Sale of Surplus Property 10,000 10,000 Total Revenues 32,371 31,800 31,800 Expenditures Capital Improvement Plan Projects 86,416 291,200 419,673 (128,473 ) Total Expenditures 86,416 291,200 419,673 (128,473 ) Other Sources (Uses ) Proceeds from Debt Financing Operating Transfers I n General Fund 500,000 700,000 700,000 Total Other Sources (Uses)500,000 700,000 700,00 0 Revenues and Other Sources Over (Under ) Expenditures and Other Uses 445,955 440,600 312,127 (128,473 ) Fund Balance, Beginning of Year 1,796,200 2,175,200 2,242,155 66,955 •Fund Balance, End of Year $2,242,155 $2,615,800 $2,554,282 ($61,518) • * See page B-48 for explanation . B-39 B1-5 2 • CHANGES IN FINANCIAL POSITIO N LOS OSOS VALLEY ROAD SUB-AREA FEE FUN D Revenue s Investment and Property Revenues 12,155 2,000 2,00 0 Service Charges 624,762 Total Revenues 636,917 2,000 2,00 0 Expenditure s Capital Improvement Plan Projects 624,762 236,365 (236,365 ) Other Sources (Uses) Operating Transfers In Revenues and Other Sources Over (Under ) Expenditures and Other Uses 12,155 2,000 (234,365)(236,365 ) Fund Balance, Beginning of Year 360,700 743,600 372,855 (370,745 ) Fund Balance, End of Year $372,855 $745,600 $138,490 ($607,110) • • *See page B-48 for explanation . B-40 B1-53 CHANGES IN FINANCIAL POSITIO N DEBT SERVICE FUND • Expenditures Debt Service 2001 Refunded Revenue Bonds 451,66 1 2004 Refunding Revenue Bonds 294,612 293,400 293,40 0 2005 Refunding Revenue Bonds 466,111 472,000 472,00 0 2006 Lease Revenue Bonds 459,362 460,100 460,10 0 2009 Lease Revenue Bonds 845,635 840,200 840,20 0 2012 Refunding Revenue Bonds 387,000 387,00 0 2010 Fire Eng ./Truck Lease 129,900 126,900 126,90 0 Energy Conservation Lease Purchase 57,769 57,900 57,90 0 Total Expenditures 2,705,050 2,637,500 2,637,500 Other Sources (Uses ) Proceeds from debt financin g Operating Transfers In 2,437,244 2,637,500 2,637,500 Total Other Sources (Uses)2,437,244 2,637,500 2,637,500 Revenues and Other Sources Over (Under) Expenditures and Other Uses (267,806 ) Fund Balance, Beginning of Year • Reserved for Debt Service 2,285,706 2,285,700 2,017,900 (267,800 ) Unreserved Fund Balance, End of Year $2,017,900 $2,285,700 $2,017,900 ($267,800) • * See page B-48 for explanation . B-41 B1-54 CHANGES IN FINANCIAL POSITIO N •WATER FUN D Revenues Investment and Property Revenues 338,590 186,200 262,000 75,80 0 Subventions and Grant s Service Charges Water Sale s Water Service Charges 14,299,082 14,859,900 15,006,400 146,500 Sales to Cal Poly 1,209,971 1,028,800 882,300 (146,500) Development Impact Fees 643,160 386,900 960,000 573,10 0 Connection Charges & Meter Sales 14,000 9,200 35,000 25,80 0 Account Set-Up Fee 94,774 116,400 116,400 AB 939 Reimbursement 123,696 126,600 126,600 Other Revenues 9,574 38,100 30,000 (8,100) Total Revenues 16,732,847 16,752,100 17,418,700 666,600 Expenditures Operating Programs Public Utilities 12,356,681 13,264,300 13,747,454 (483,154 ) General Government 1,309,400 1,316,700 1,316,700 Total Operating Programs 13,666,081 14,581,000 15,064,154 (483,154 ) Capital Improvement Plan Projects 1,481,564 200,000 1,576,438 (1,376,438) Debt Service 1,630,039 2,187,600 2,187,600 Total Expenditures 16,777,684 16,968,600 18,828,192 (1,859,592 ) Other Sources (Uses ) •Other Sources (Uses)465,937 62,900 62,900 Expenditure Savings 79,300 79,300 Potential MOA Adjustment s Total Other Sources (Uses)465,937 142,200 (142,200 ) Revenues and Other Sources Over (under ) Expenditures and Other Uses 421,100 (74,300)(1,409,492)(1,335,192 ) Working Capital, Beginning of Year 12,678,200 9,380,400 13,099,300 3,718,900 Working Capital, End of Year $13,099,300 $9,306,100 $11,689,808 $2,383,708 • 'See page B-48 for explanation. B-42 B1-55 CHANGES IN FINANCIAL POSITIO N SEWER FUND • Revenues Investment and Property Revenues 208,426 128,600 128,600 Subventions and Grant s Service Charges Customer Sale s Sewer Service Charges 13,600,969 14,266,000 14,266,00 0 Sales to Cal Poly 841,167 799,200 799,20 0 Industrial User Charges 73,368 65,700 65,70 0 Development Impact Fees 141,237 103,700 210,000 106,300 Connection Charges & Meter Sales 18,022 9,200 15,00 0 Account Set-Up Fee 68,864 116,400 116,40 0 Other Service Charge s Other Revenues 46,102 3,600 6,600 3,000 Total Revenues 14,998,155 15,492,400 15,607,500 115,100 Expenditures Operating Program s Public Utilities 5,680,129 6,543,100 7,264,213 (721,113 ) General Government 1,354,300 1,394,100 1,394,100 Total Operating Programs 7,034,429 7,937,200 8,658,313 (721,113 ) Capital Improvement Plan Projects 2,769,179 970,000 6,691,764 (5,721,764) Debt Service 2,755,369 2,995,000 2,995,000 Total Expenditures 12,558,977 11,902,200 18,345,077 (6,442,877) Other Sources (Uses)• Proceeds from Debt Financin g Potential MOA Adjustments 82,000 82,000 Other Sources (Uses)(62,900) Operating Transfer Out (14,390)(14,390 ) Total Other Sources (Uses)19,100 67,610 48,51 0 Revenues and Other Sources Over (Under) Expenditures and Other Uses 2,439,178 3,609,300 (2,669,967)(6,279,267 ) Working Capital, Beginning of Year 10,321,422 6,406,700 12,760,600 6,353,900 Working Capital, End of Year $12,760,600 $10,016,000 $10,090,633 $74,633 • *See page B-48 for explanation . B-43 B1-56 CHANGES IN FINANCIAL POSITIO N •PARKING FUN D Revenue s Investment and Property Revenues 154,916 88,900 88,900 Fines and Forfeitures 536,669 694,600 694,600 Service Charges Parking Meter Collections Lots 426,142 415,000 414,900 (100 ) Streets 1,204,753 1,436,700 1,436,700 Parking Structure Collections 756,008 814,800 814,800 Long-Term Parking Revenues 394,041 378,300 378,400 10 0 Lease Revenues 204,743 376,300 212,500 (163,800 ) Parking In-Lieu Fees 4,449 3,382,000 822,200 (2,559,800 ) Other Service Charges 528 100 100 Other Revenue s Total Revenues 3,682,249 7,586,700 4,863,100 (2,723,600 ) Expenditures Operating Program s Transportation 1,817,651 2,003,200 2,100,761 (97,561 ) General Government 533,700 508,600 508,600 Total Operating Programs 2,351,351 2,511,800 2,609,361 (97,561 ) Capital Improvement Plan Projects 482,203 195,000 1,848,305 (1,653,305 ) Debt Service 1,509,071 1,525,600 1,525,600 Total Expenditures 4,342,625 4,232,400 5,983,266 (1,750,866 ) •Other Sources (Uses ) Proceeds from Debt Financin g Operating Transfers Out (100,000)(100,000 ) Other Sources (Uses)(2,400,000)2,400,00 0 Potential MOA Adjustment s Total Other Sources (Uses)(2,400,000)(100,000)2,300,00 0 Revenues and Other Sources Over (Under) Expenditures and Other Uses (660,376)954,300 (1,220,166)(2,174,466 ) Working Capital, Beginning of Year 5,324,724 4,451,300 5,985,100 1,533,80 0 Working Capital, End of Year :$5,985,100 $5,405,600 $4,764,934 ($640,666) • * See page B-48 for explanation. B-44 B1-5 7 CHANGES IN FINANCIAL POSITIO N TRANSIT FUND • Revenue s Investment and Property Revenues 24,150 5,700 5,700 Subventions and Grant s TDA Revenues 1,177,462 1,416,900 1,618,738 201,83 8 Other Grants 620,630 539,749 539,74 9 FTA Grants 1,419,675 1,274,600 1,757,850 483,25 0 Service Charges 626,458 637,700 618,600 (19,100 ) Other Revenues 35,949 5,000 5,000 Total Revenues 3,904,324 3,339,900 4,545,637 1,205,73 7 Expenditures Operating Programs Transportation 2,616,974 2,855,700 2,989,296 (133,596) General Government 476,500 416,900 416,900 Total Operating Programs 3,093,474 3,272,600 3,406,196 (133,596 ) Capital Improvement Plan Projects 826,335 1,002,807 (1,002,807) Total Expenditures 3,919,809 3,272,600 4,409,003 (1,136,403) Other Sources (Uses) Expenditure Savings Other Sources (73,888)• Potential MOA Adjustment s Total Other Sources (Uses)(73,888 ) Revenues and Other Sources Over (Under) Expenditures and Other Uses (89,373)67,300 136,634 (69,334) Working Capital,Beginning of Year 6,094,327 1,095,200 6,183,700 5,088,50 0 Working Capital, End of Year $6,183,700 $1,162,500 $6,320,334 $5,157,834 • * See page B-48 for explanation. B-45 B1-5 8 CHANGES IN FINANCIAL POSITIO N •WHALE ROCK COMMISSIO N Revenues Investment and Property Revenues 22,292 14,100 14,10 0 Subventions & Grant s Service Charge s Member Agency Contributions 627,400 582,300 582,30 0 Water Distribution Charges 189,244 301,100 301,10 0 Other Revenues 1,639 1,400 1,400 Other Revenue s Total Revenues 840,575 898,900 898,900 Expenditure s Operating Programs Public Utilities 674,478 803,000 914,989 (111,989) General Government 101,000 95,800 95,800 Total Operating Programs 775,478 898,800 1,010,789 (111,989) Capital Improvement Plan Projects 605,316 (605,316 ) Total Expenditures 775,478 898,800 1,616,105 (717,305 ) Other Sources (Uses ) Potential MOA Adjustments (44,200)(44,200)• Total Other Sources (Uses)(44,200)(44,200) Revenues and Other Sources Over (under ) Expenditures and Other Uses 65,097 (44,100)(761,405)(717,305) Working Capital, Beginning of Year 1,095,803 559,500 1,160,900 601,400 Working Capital, End of Year $1,160,900 $515,400 $399,495 ($115,905) • *See page B-48 for explanation . B-46 B1-5 9 CHANGES IN FINANCIAL POSITIO N PARK HOTEL FUND • Revenues Investment and Property Revenue s Subventions & Grants 2 6 Total Revenues 2 6 Expenditures Operating Program s Capital Improvement Plan Project s Total Expenditure s Other Sources (Uses ) Operating Transfer I n Operating Transfer Out (21,200)(21,200 ) Total Other Sources (Uses)(21,200)(21,200 ) Revenues and Other Sources Over (under ) Expenditures and Other Uses 26 (21,200)(21,200 ) Fund Balance, Beginning of Year 39,100 39,100 Fund Balance, End of Year $26 $17,900 $17,900 • • * See page B-48 for explanation .B47 B1-60 The variance column shown in the preceding worksheets represents the difference s between the original budget and the revised budget projection . The revenue variance s shown are comprised of changes to the originally budgeted amounts in order t o recognize prior year and unexpended grant revenues that are being carried forward t o this year and changes in the forecast amounts to reflect under or over-realize d revenues . With respect to the variances shown for expenditure categories, the additio n of previously encumbered amounts from the prior year, allowed carryover of previou s year unexpended amounts and other unanticipated changes that have been approve d by the City Manager are also reflected . • • B-48 B1-61 Section C MID-YEAR BUDGET REQUESTS B1-62 SUMMARY OF 2012-13 MID-YEAR BUDGET REQUEST S • Water Fund ■ Water Master Plan Page No .I C-2 2012-1 3 $ 232,000 General Fund Total Operating Program s ■ Damon Garcia Parking Lot Removal $232,000 CA $ 75,000 General, Water, Sewer , Parking, Transit ■ Global Positioning System Replacement C-7 $ 70,00 0 Water Fund ■16 Inch Waterline Replacement C-10 $ 370,00 0 Sewer Fund Jennifer Street Railroad Crossing & ■ Higuera/Marsh Sewerline Rerouting C-13 $ 99,50 0 TOTAL Total CIP Project s General Fund Water Fund Sewer Fun d Parking Fund Transit Fund $614,50 0 $846,50 0 $ 94,60 0 614,60 0 112,100 12,600 12,600 $846,500 • C-1 SIGNIFICANT OPERATING PROGRAM CHANGE - PUBLIC UTILITIE S WATER MASTER PLAN • 9 0 0 Project Descriptio n Preparation of a 2013 Water Master Plan to update the outdated 2000 Water Master Plan and 2004 Water Reus e Master Plan will cost $247,000 in 2012-13 . q Maintenance/Replacement © New project q Fleet Replacement q New Fleet Reques t Council Goal / Measure Y Priority - List : Infrastructure Maintenanc e Need and Urgenc y The 2000 Water Master Plan is outdated and requires revision to identify needed capital improvements to serv e the City's water customers and determine system improvements required to serve future build out proposed in th e update of the General Plan's Land Use Element . The Master Plan Update will include the development an d calibration of a hydraulic model, which will identify system improvements to maximize hydraulic efficiency an d reduce energy consumption. In addition, the Update will identify backbone infrastructure required to serve th e Orcutt and Airport Specific Plan areas, and Avila Ranch including distribution system expansion and additiona l water storage requirements . The 2004 Water Reuse Master Plan identified initial recycled water users, future users, and phased expansion o f the recycled water distribution system to meet the City's overall objective of using 1,000 acre-feet per year (AFY ) of recycled water. Changes since that time necessitate a plan update . These changes including the elimination o f the groundwater exchange program which was to make up a significant portion (380 to 400 AFY) of planne d demand. The recycled water distribution system and recycled water storage must be planned for implementatio n as demand develops . The Master Plan update will include the development of a hydraulic model to addres s recycled water distribution system expansion and projected recycled water use, including the potential to delive r available recycled water supplies to customers outside the City limits, consistent with the General Plan's Wate r and Wastewater Element, Program A 7.3.4 . The City's on-call civil engineering design consultants will be utilized to provide the study services at a cost o f $247,000 ($163,000 Water Master Plan Update, $43,000 Recycled Water Master Plan Update, $41,00 0 contingency). Staff has identified Wallace Group as the appropriate on-call consultant for this work due to thei r recent experience with the City's Water Pump Station Analysis . The City has entered into an agreement with the Avila Ranch developer to reimburse the City approximatel y $15,000 for the section of the Water Master Plan Update which will study the Avila Ranch Area . Funding for the project is available in Water Fund Working Capital . Readiness to Buil d q Study complete or © n/a q Equipment purchased or © n/a q Property owned or property agreement in plac e q Environmental approval and permits complete o r q Specifications or construction documents complet e q IT Steering Committee review © n/a Environmental Review and Permits Required Environmental Review Building Permit © n/a B1-6 4 n/a n/a n/a9 9 n/a • • c-2 SIGNIFICANT OPERATING PROGRAM CHANGE - PUBLIC UTILITIE S • WATER MASTER PLA N q Waterway Permits (Fish & Game, Water Quality, Army Corps ) El Railroad 12 n/a q Other: (Enter the title and agency of any other needed permits ) Operating Program Number and Title : 55160 – Water Distribution (Water Master Plan ) 55110 – Source of Supply (Recycled Water Master Plan ) Project Phasing and Funding Sources q Continuing, ongoing or master account project - Specification No . Initial Project Costs by Phas e Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Total Study $247,000 $247,000 Total $0 $247,000 $0 $0 $0 $0 $247,00 0 Detail of ongoing costs and alternatives to ongoing costs including return on investment information : NA . Anticipated Facility Life Span : N A Project Funding by Source Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Total Water Fun d Avila Ranch Reimbursement $232,00 0 $15,000 $232,00 0 $15,00 0 Total $0 $247,000 $0 $0 $0 $0 $247,00 0 Reduced / Enhanced Project Alternative s q Alternate project is feasible or advantageous – Cost of alternative project : El Project can be phased – Number of years for phasing: Project Team Assignment Program Estimated Hour s Project Proponent Deputy D irector Utilities - Water 8 Project Manager Deputy Director Utilities - Water 8 0 Assistant Project Manager Utilities Project Manager 8 0 Assistant Project Manager Conservation Manager 80 • C-3 B1-6 5 n/a 13 n/a • 131 CAPITAL IMPROVEMENT PLAN - LEISURE, CULTURAL & SOCIA L SERVICES • DAMON GARCIA PARKING LOT REMOVA L Project Descriptio n Removing a parking lot at Damon Garcia Sports Fields will cost $75,000 in 2012-13 for construction . q Maintenance/Replacement q New project q Fleet Replacement q New Fleet Reques t q Council Goal / Measure Y Priority - List : Infrastructure maintenanc e Need and Urgenc y In 2006, the City and SESLOC Federal Credit Union reached agreement on a project to install a temporar y parking lot on SESLOC owned property for the use and benefit of the Damon Garcia Sport Fields . Thi s temporary parking lot was allowed to use SESLOC property for overflow parking until some point in the futur e when SESLOC required the use of this property for their own facilities . The agreement for use of SESLOC's property requires the City to remove the existing parking and return their property to the condition it existed prio r to the parking lot installation upon notification of this need . Currently SESLOC has project plans into the City fo r review that requires the removal of the existing temporary lot and the City has been notified of the need to remov e the temporary lot . Readiness to Buil d •Study complete or © n/a •Equipment purchased or © n/a Property owned or property agreement in place q n/a •Environmental approval and permits complete or q n/a •Specifications or construction documents complete q n/a ▪IT Steering Committee review © n/a Environmental Review and Permits Require d 12 Environmental Review q n/a Building Permit q n/a •Waterway Permits (Fish & Game, Water Quality, Army Corps ) •Railroad © n/a •Other : (Enter the title and agency of any other needed permits ) Operating Program Number and Title : 50200 - Landscape and Parks Maintenanc e Project Phasing and Funding Source s q Continuing, ongoing or master account project - Specification No . Initial Project Costs by Phas e Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Tota l Construction Total $0 $75,00 0 $75,000 $0 $0 $0 $0 $75,000 $75,000 • Anticipated Facility Life Span : NA B1-66 • n/a n/a C-4 • CAPITAL IMPROVEMENT PLAN - LEISURE, CULTURAL & SOCIA L SERVICE S DAMON GARCIA PARKING LOT REMOVA L Project Funding by Sourc e Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Tota l General Fund $75,000 $75,00 0 Total $0 $75,000 $0 $0 $0 50 $75,000 Reduced / Enhanced Project Alternative s q Alternate project is feasible or advantageous — Cost of alternative project : q Project can be phased — Number of years for phasing : 2 (Construction phased) Project Tea m Assignment Program Estimated Hour s Project Proponent Parks and Recreation 8 Project Manager CIP Engineering 8 0 Environmental Clearance Community Development 4 Contract Management CIP Engineering — Administration 4 0 Construction Management CIP Engineering 8 0 • • C-5 B1-6 7 CAPITAL IMPROVEMENT PLAN - LEISURE, CULTURAL & SOCIA L SERVICES • DAMON GARCIA PARKING LOT REMOVA L Site Location • B1-6 8 C-6 CAPITAL IMPROVEMENT PLAN - GENERAL GOVERNMEN T • GLOBAL POSITIONING SYSTEM REPLACEMEN T Project Description Replacing the City's GPS equipment will cost $70,000 in 2012-13 . Maintenance/Replacement q New project q Fleet Replacement q New Fleet Reques t q Council Goal / Measure Y Priority - List : Need and Urgency Global Positioning System (GPS) technology is used to collect accurate positioning information . The City's GP S equipment increases the accuracy beyond what is available using retail technology like smartphones and GP S navigation devices . This increased accuracy is necessary in order for the position information to be useful fo r surveying . Up to date technology would allow staff to collect positioning information that is accurate to within 2 centimeters . The positioning information collected using the GPS equipment provides the foundation for th e City's Geographic Information System (GIS). GIS is a mission critical tool for City work process across al l departments . The City's GPS equipment is over 15 years old and is no longer supported by the manufacturer . Staff first asked for funding to replace the equipment as part of the 2007-09 Financial Plan . In 2007, at that time the equipmen t was having intermittent problems, currently the equipment is in visibly poor physical condition ; fittings are well- worn and connections are loose . The current equipment was discontinued over 5 years ago and findin g replacement parts is increasingly difficult as supplies are diminishing . In addition, the current equipment i s limited to line of sight from the South Hills radio tower . The new GPS equipment will allow accurate mappin g well beyond the City Limit such as the Stenner Creek Water Treatment Plant and Whale Rock Reservoir . The Federal Communications Commission (FCC) imposed mandatory narrow-banding regulations on radi o frequencies from 25 kHz to 12 .5 kHz . The deadline for narrow-banding all equipment was January 1 n ,2013 . The City GPS differential signal repeater is too old to be narrow-banded . As a result on January 1st, the City's GPS differential signal repeater was turned off in order to maintain compliance with FCC regulations . This resulted i n the GPS equipment no longer working in the parts of the City where the repeater radio was needed . The ne w equipment has the option to use Internet based position information instead of using transmitting radios . This will eliminate the need for replacing 2 GPS radios and maintaining FCC radio licenses . The IT Steering Committee recommended replacing the City's GPS to locate City assets accurately, expedit e work processes and minimize the cost for the City . Components Estimated Cos t Base Station $30,000 Rover $31,000 Rover Accessory (rods, bipod, Datalogger clip, batteries)$2,000 Installation $4,00 0 Training $3,00 0 Total $70,000 Readiness to Buil d • q Study complete or q n/a q Equipment purchased or © n/a q Property owned or property agreement in place B1-6 9 • n/a C-7 CAPITAL IMPROVEMENT PLAN - GENERAL GOVERNMEN T GLOBAL POSITIONING SYSTEM REPLACEMENT • •Environmental approval and permits complete or 12 •Specifications or construction documents complet e 13 IT Steering Committee review q n/a Environmental Review and Permits Require d q Environmental Review © n/a q Building Permit © n/a q Waterway Permits (Fish & Game, Water Quality, Army Corps ) q Railroad 12 n/a q Other : (Enter the title and agency of any other needed permits ) Operating Program Number and Title : 25450-Geographic Information Service s Project Phasing and Funding Source s q Continuing, ongoing or master account project - Specification No . Initial Project Costs by Phase Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Total Study $0 Environmental / Permit $d Land Acquisition $0 Site Preparation $0 Design $0 Construction $0 Construction Management $0 Equipment Acquisition $70,000 $70,00 0 Total_$0 $70,000 $0 $0 $0 $0 $70,000 Ongoing Costs by Typ e Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Tota l Utilities $0 Maintenance materials $0 Property rental/lease $0 Staff $0 Contract Services $0 Total $0 $0 $0 $0 $0 $0 $0 Detail of ongoing costs and alternatives to ongoing costs including return on investment information : Anticipated Facility Life Span : 7 years 13 n/a n/a n/a 12 n/a • C-s B1-7 0 CAPITAL IMPROVEMENT PLAN - GENERAL GOVERNMEN T • GLOBAL POSITIONING SYSTEM REPLACEMEN T Project Funding by Source Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Tota l General Fund $19,600 $19,60 0 Water Fund $12,600 $12,600 Sewer Fund $12,600 $12,60 0 Parking Fund $12,600 $12,60 0 Transit Fund $12,600 $12,60 0 Total $0 $70,000 $0 $0 ,$0 $0 $70,000 The costs are allocated based on the heaviest users of the GPS system, which are the Utilities and Public Work s departments . Therefore, the costs are allocated as follows : 18% to each of the Enterprise Funds (Water, Sewer , Parking and Transit) and 18% to the Streets program in Public Works (General Fund). The remaining costs (10%) are allocated to other General Fund programs, specifically Parks and Recreation (5%) and Police (5%). Reduced / Enhanced Project Alternative s 12 Alternate project is feasible or advantageous — Cost of alternative project : Increased costs to all project s that require GIS data . Hiring Surveyors The alternative to replacing the GPS equipment is hiring surveyors for every project at much greater cost . A typical surveyor's hourly wage is $175 per hour that could easily cost several thousands of dollars pe r • job . The City will also lose the ability to collect the GPS data quickly . Currently Engineering and GI S staff can do the work at any moment . Hiring a surveyor would require meetings and contracts before an y work begins . q Project can be phased — Number of years for phasing : Project Tea m Assignment Program Estimated Hour s Project Manager GIS 8 0 Equipment Acquisition Network Services / GIS 40 Equipment Installation Network Services 80 • B1-7 1 C-9 CAPITAL IMPROVEMENT PLAN — PUBLIC UTILITIE S 16 INCH WATERLINE REPLACEMENT —DESIGN SERVICES • 0 0 Project Description Contract Design Services to replace approximately 6,130 feet of I6-inch cast iron transmission main will cos t $370,000 in 2012-13 . Construction of projects will cost $1,550,000 in 2013-14 and $1,110,000 in 2014-15 an d will be included in the 2013-15 Financial Plan . •Maintenance/Replacement q New project q Fleet Replacement q New Fleet Reques t •Council Goal / Measure Y Priority - List : Infrastructure maintenanc e Need and Urgency A 16-inch transmission main that runs from Highway 101 to Bishop Street, primarily along Johnson Avenue an d San Luis Drive, provides water to approximately half the City . The transmission line is at the end of its useful lif e and has failed twice in the past two years, resulting in extensive street damage and loss of water service to Frenc h Hospital. This section of waterline is scheduled for replacement in the upcoming 2013-15 Financial Plan ; however, in order to meet construction timelines, design of the waterline replacement needs to occur before Jun e 2013 . The City's on-call civil engineering design consultants will be utilized to provide the design services at a cost of $336,375 . Staff has identified MNS Engineers, Inc . as the appropriate on-call consultant for this work . The goal is to have design complete in time to bid the project in June, which will allow for construction in front o f SLO High School during the summer academic break . The constrained timeframe to produce bid documents doe s not allow for design services to be completed by Public Works Engineering . Funding for the project is available in Water Fund Working Capital . Readiness to Build q Study complete or © n/a q Equipment purchased or la n/a q Property owned or property agreement in place © n/a q Environmental approval and permits complete or 13 n/a q Specifications or construction documents complete q n/a q IT Steering Committee review © n/a Environmental Review and Permits Require d •Environmental Review q n/a •Building Permit © n/a Waterway Permits (Fish & Game, Water Quality, Army Corps ) Railroad © n/a •Other : (Enter the title and agency of any other needed permits ) Operating Program Number and Title : 55160 – Water Distributio n Project Phasing and Funding Source s q Continuing, ongoing or master account project - Specification No . B1-7 2 n/a El n/a • • C-10 CAPITAL IMPROVEMENT PLAN - PUBLIC UTILITIE S •16 INCH WATERLINE REPLACEMENT — DESIGN SERVICES Initial Project Costs by Phase Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Total Design $370,000 $370,000 Construction *$0 Total $0 $370,000 $0,$0 $0 $0 $370,000 *Construction estimates of $1,550,000 in 2013-14 and $1,110,000 in 2014-15 will be included in the 2013-15 Financial Pla n Detail of ongoing costs and alternatives to ongoing costs including return on investment information : Replacement of the water main will reduce unanticipated emergency repairs . No additional ongoing maintenanc e costs are anticipated beyond what is already budgeted for maintenance of the distribution system . Anticipated Facility Life Span : 50 years Project Funding by Source Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Total Water Fund $370,000 $370,00 0 Total $0 $370,000 $0 $0 $0 $0 $370,00 0 Reduced / Enhanced Project Alternative s Alternate project is feasible or advantageous — Cost of alternative project : Project can be phased — Number of years for phasing : 2 (Construction phased ) Project Tea m Assignment Program Estimated Hours Project Proponent Deputy Director Utilities - Water 8 Project Manager*Deputy Director Utilities - Water 8 0 Environmental Review Community Development 2 Contract Management CIP Engineering — Administration 20 * Design-phase only Site List — For multi-year projects Location Estimated Year of Construction Pavement Area (for projects in right-of-way) 16" Waterline Replacement (Phase 1 ) California - Mill to San Luis Drive (1,400 ft ) San Luis Drive - California to Johnson (1,600 ft ) Johnson - San Luis Drive to Lizzie (670 ft) 2013 1 16" Waterline Replacement (Phase 2 ) Johnson - Iris to Bishop (1,800 ft) Bishop - Johnson to Augusta (660 ft) 2014 1 2 B1-73 0 • • c-].l CAPITAL IMPROVEMENT PLAN - PUBLIC UTILITIE S 16 INCH WATERLINE REPLACEMENT —DESIGN SERVICES • Location Map • • C-12 B1-74 CAPITAL IMPROVEMENT PLAN - PUBLIC UTILITIE S •JENNIFER STREET RAILROAD CROSSING AND HIGUERAIMARSH SEWERLINE REROUTIN G Project Descriptio n Design services for the Jennifer Street Railroad Crossing and the Higuera/Marsh Sewerline Rerouting will cos t $99,500 in 2012-13 . q Maintenance/Replacement © New project q Fleet Replacement q New Fleet Reques t Council Goal / Measure Y Priority - List : Infrastructure Maintenanc e Need and Urgenc y The City maintains 18 sanitary sewer lines that cross under railroad tracks to provide wastewater collection services to the community . Many of these crossings were installed in the early 1900s . The cast iron and steel pipe material utilized for these crossings can be problematic due to rust and corrosio n related to age . The City has replaced three of these crossings in the past two years at McMillan, Pismo, an d Woodbridge Streets . Construction efforts in the railroad right-of-way are complicated, and made mor e costly by the Union Pacific Railroad (UPRR) permitting process and the physical engineerin g constraints (crossing alignments, boring depths, casing requirements, etc .). Due to the condition of thre e railroad crossings at Jennifer Street, Marsh Street, Higuera Street, replacement of these sewer lines is a high priority in 2013 . Jennifer Street Railroad Crossing Desig n The existing Jennifer Street sewerline that crosses diagonally under the UPRR railroad tracks wa s installed in 1910 . It is a six-inch diameter, un-encased, cast iron sewerline that crosses the tracks nea r the Jennifer Street Bridge and extends west, 275 feet toward Upham Street . Corrosion has decreased th e interior diameter of the sewerline restricting its capacity which is indicative of poor structural integrit y and the end of its useful service life . This project was not identified in previous Financial Plans because past video inspections showed a clear, albeit corroded, pipe that City staff could maintain . Recently maintenance crews were unable t o get a cleaning tool through the entire length of the pipe and a subsequent video inspection this summe r detected a failure in the pipe where it did not connect end to end also referred to as an "off-set joint". This change of condition has made replacement a priority . If the sewerline fails, it cannot be easily by - passed to another part of the collection system and it lies under several critical railroad facilities . Because of its poor condition and changed conditions, staff proposes the use of an engineering desig n consultant to expedite the replacement of the sewerline . During the design phase, the consultant wil l explore re-directing the flow to Upham Street where a new sewer line provides additional capacity an d will relieve older overcapacity lines that serve the "old town" area, reducing the potential for servic e interruptions and overflows during wet weather . Construction funding is included in the draft 2013-1 5 Financial Plan CIP for replacement in 2013-14 . Higuera/Marsh Sewerline Rerouting Stud y The City's wastewater collection system between California and Pepper Streets includes two railroa d crossings at Higuera and Marsh Streets . These lines were installed around 1905 and are in poo r condition due to their age and the existing pipe material. Like the Jennifer Street Crossing, these six-inc h diameter sewer lines were also constructed of cast iron that has corroded with age . Wastewater B1-7 5 12 • • C-13 0 0 13 CAPITAL IMPROVEMENT PLAN - PUBLIC UTILITIE S JENNIFER STREET RAILROAD CROSSING AND HIGUERA/MARSH SEWERLINE REROUTING • Collection staff identified the opportunity to eliminate both of these railroad crossings by redirectin g wastewater flows (the existing sewer mains would be replaced with sewer lines that directly flow towar d California Street, then to Monterey Street). The existing trunk sewer line on Monterey Street wa s upgraded in 2004 and redirecting the flows to it would relieve the older, higher maintenance line s currently serving this area . The project also includes replacing five other problematic sewer mains in th e vicinity . With the assistance of the engineering design consultant, staff will explore the feasibility of whether th e flow can be rerouted and the existing Higuera and Marsh Street crossings can be abandoned. Following the determination of feasibility of the rerouting, the project's design phase would be completed b y Public Works and construction of the project will proceed during 2014 . Funding for the project is available in Sewer Fund Working Capital . Readiness to Buil d q Study complete or q n/a q Equipment purchased or © n/a q Property owned or property agreement in place © n/a q Environmental approval and permits complete or © n/a q Specifications or construction documents complete q n/a q IT Steering Committee review © n/a Environmental Review and Permits Required Environmental Review q n/a Building Permit 13 n/a Waterway Permits (Fish & Game, Water Quality, Army Corps ) Railroad q n/a •Other: (Enter the title and agency of any other needed permits ) Operating Program Number and Title : 55310— Wastewater Collection s Project Phasing and Funding Source s q Continuing, ongoing or master account project - Specification No . Initial Project Costs by Phase Budget to Date 2012-13 2013-14 2014-15 2015-16 2016-17 Tota l Desig n Study $65,300 $34,200 $65,30 0 $34,20 0 Total $0 $99,500 $0 $0 $0 $0 $99,500 Detail of ongoing costs and alternatives to ongoing costs including return on investment information : Replacin g and possibly rerouting deteriorated sewer lines will result in increased reliability of the sewer system and reduc e the potential for unanticipated emergency repairs . This request, to design and study the projects, does not have any direct impact on ongoing costs . Anticipated Facility Life Span : The anticipated lifespan of sewer lines is approximately 50 years . B 1-76 • n/a n/a • C-14 CAPITAL IMPROVEMENT PLAN - PUBLIC UTILITIE S •JENNIFER STREET RAILROAD CROSSING AND HIGUERA/MARSH SEWERLINE REROUTIN G Project Funding by Sourc e Budget to Date 201213 2013-14 2014-15 2015-16 2016-17 Total Sewer Fund $99,500 $99,50 0 Total $0 $99,500 $0 $0 $0 $0 $99,500 Reduced / Enhanced Project Alternative s q Alternate project is feasible or advantageous — Cost of alternative project : q Project can be phased — Number of years for phasing : Project Tea m Assignment Program Estimated Hour s Project Proponent Deputy Director Utilities — Wastewate r Utilities, Wastewater Collectio n Superviso r Utilities, Wastewater Collection staff 8 4 0 4 0 Project Manager Utilities Project Manager 10 0 Environmental Review Community Development 8 Project Support Public Works, Administration 4 0 • • C-15 B1-7 7 CAPITAL IMPROVEMENT PLAN - PUBLIC UTILITIE S JENNIFER STREET RAILROAD CROSSING AND HIGUERAIMARSH SEWERLINE REROUTING Jennifer Street Railroad Crossing Design Location Map • • • B1-7 8 C-16 CAPITAL IMPROVEMENT PLAN - PUBLIC UTILITIE S JENNIFER STREET RAILROAD CROSSING AND HIGUERA/MARSH SEWERLINE REROUTIN G • Higuera/Marsh Sewerline Rerouting Study Location Map B1-7 9 C-17 Section D RECENT FINANCIAL AND REVENUE REPORTS S B1-80 0yya'b"":":""'"'":"Ea":":"..j Strip0 :Lint ritt,%"","t":=":":"....t". RE IF :" —" toss re04Sr for increased 8 Mai IB.00 !fir ago spiefiellgpleeili i4r,4eoliN N lWhe aecepplieg ebe !it)? tilitiXOtidetr . iii est '117Iteobuntingebomaliestieteffededt .. metr r i ttisestirlir rTo:or both itpentads inflatSti.results ;trridrtiizirrtrit,tt,rrs:zEtfromiluMberIbullding matenaft'serri r OP:Adiustrygrpupaii!Receipt eh :double4it :it ;Tit;.rip ortt1tr rNieplirpaympripittemporaptygigiffsetthese impact busines srttt ttr:trrrr ttrzrlmpactof ait businessdesegiiaut on d: rr :t rtritiHiiE aioradditrdilti Writ tibtitetR00iiiS Cott sporbeggoods ;rthailitestawattta i and its dot deafetaitut"iS 4I LasPedsales; from eiXietiOgtiiititifietea i i were a major factor for the increase `! Ptfrbftt the latter category. Postings ere up front eeVeraftcategories pfr; .epnSumer g o Weirartd ii iiielficabo rtspifilibrtsinesstifemsimessit o reaseewere partietlYS'f(eet by T tedines from contractor supplies i:e$t years bpOstore..04000 t an d iirrthesmaller Nallocationtton,n the ,; dpuntywide wellfett pool t... E14;idijipteldiiiiMeUreMNbf0 iiepprovedr leeektrensactipheiifex to- to . 51,653 ;473 for the 4iia.Jlett ttteluding $61452 due fromether pe ,,:Hods `nd"ted for-reporting ai.. AxableSda8i lit ::..: t . . increases ;.y 'he periodthe Centre! CoastGti:the SALES TAX BY MAJOR BUSINESS GROU P S200,000 Mi Id Oc Alm sot 1 Quarter 201 23rd General Autos Restaurants Building Fuel an dConsumerandandandServiceGoodsTransportationHotelsConstructionStations Businessandindustry FoodandDrugs ..regi as a whole was up ...12 .4%. entral Coast Shel l hevron oast BMW Nissa n ole Chryslerodge Jee pazda onsery Fuel ostco uesta Cadillacaab Ranch orande Motors dna Valley Shel l ..;::-:::T :1E 4r.Lt- ..s . see—tree . Alfano Motorcar sercedes Benzhevrolet Apple Compute r est Buy NB Arco 'I P 25 PRODUi RSrisigiHi erguso nnterprise s ayward Lumber ome Depot B Dewar Exxo nistributor ohl s aguna Shell & adonna Shel l erry Ford Lincol n ear s unset Auto Sale s arget ennis Warehous e oyota of San Luisbispo nited Rentals RE V.tt., NUEt OMP RI S O rTeatie;rr X113 t2 2e18 t8 ,; Point•afSste f? *334 saris :i t .;. Reg ...SSG ::.. !". el:... ....t ......$(iii County Pool s ..:...'HE."".'' 'i .... Less Tr7pie Flip ';t'7,fi0,96} `'i{; r 1465 :! Grassitirriiiiimirtri ;tC.:..." ....k.fir!EeWr*s''r""", . D-1 WI0Z Statewide Results Lratnsiix.all seven of HdL's key eco- nomic groupings confirm that Cali- fornia's economy continues to mend . Statewide local sales and use tax rev- enues from transactions occurring July through.;September 2012 were 6 .0 % higher than the same quarter in 201 1 after onetime accounting and report- ing,aberrations are factored out . The-continued strong demand forne w autos. exceeded analysts' expectation s and generated about one-fourth o f the adjusted statewide increase . Res taurant sales posted another stron g quarter with receipts 6 .6% higher'than l the same period one year ago . Use tax from the development of solar ener-. gy projects and a modest recovery in. some categories of building and con .. struction materials also contributed to the rise. Overall sales growth was tempered b y a leveling in fuel prices compared t o the previous year's quarter and by a slowdown in business spending in the Silicon Valley. even include an increase in construc- tion-related employment . The state's housing market is strength- ening with fewer distressed transac- tions and record low inventories . The ''.. median sales price of homes has in - creased for the last eight consecutive months of the year and building a c tiviry, particularly in the coastal areas , is expected to pick up steam in 2013 .[ Elevated foreclosure rates in some in land regions may delay building recov - ery for another year or two . Pent-up demand, record low inte r.5555 5 est Yates and easing credit availabilit y have led to robust sales of new auto - mobiles . That demand is expected t o continue for another few quarters as consumers replace older, less fuel ef- -cient models and take advantage o f lease and financing incentives bein g offered by manufacturers . Wage gains from new hiring, combine d with lower fuel prices and an improv - ing housing market are incrementally boosting consumer confidence bu t much depends on government stew- ardship of the recovery . Tax increase s and reduced benefits could shrin k spending at the lower income level s while overly deep cutbacks in gov- ernment contracts and infrastructur e improvements could discourage ne w business investment . SALES PER CAPIT A San Luis Obispo County Cal iori a The Year Ahea d Gains in sales and use tax receipts fro m the first half of 2013 are expected t o be lower than previous quarters . Re- covery from "fiscal cliff" uncertaintie s and its final outcome may take several months while Europe's financial woe s and China's sluggish growth will tem- per California export activity . Fue l prices should stabilize and not gener- I ate the huge bubbles in tax revenue s experienced in previous quarters . The last half of the year is predicted to resume steady, moderate growth . I n November, the state's unemployment rate had already dipped to 9 .8 percent, the lowest since the recession began . The recent gains are becoming mor e widespread among job categories and Grocery Stores L!quer Homo Furnishing s bor?Bulldog 9.4 Is 'itotnr Vehrrle L?eaieis..:' Burn Prod'Equi .xr it bing'Electrical Supp l aurants Beer And YV ce aurants No Aienh O Sovice Stations Specialty Stores . ing GoodstBlke Stores . ri All Atcoen¢a ; County & StatePool Allaq Gross Receipts SanLuis Q Q3'12`1 .5 . iange County Change —CONFIDE.9 .9 % 144 .4 1 .5%0 % 105 .2 4 .2%10,7 % 90 .6 t8%-J6 % 86 .0 -0 .5%-0 3 % 231 .5 59 .6%37 .0 % 484?137%14 .0 % ..%ONFIDENT€AL -0 .5% 635 1 .7%5 .9 % 111 .4 14 .0%4 .5 % 156.0 15 .5%70 % 984 2 .8%9.6% 279.2 4 .9%5 .5% 812 0 .2% 143.4 25 .8%174% $3.349.8 ...:i ifs D-2 city o fsan Luis oBlsp o Monthly TOT'Repo t • December 201 2 February 6, 201 3 This report covers the City's transient occupancy tax (TOT) revenues for December 2012 compared with the two prior years . As reflected below, revenues for the month of December 2012 are up by 1 .3%from the same month las t year and up 5.7%yea r to date . Year Date TOT Revenue sto Prior Year Last Year This Year Increase (Decrease ) Last Year Vs This Yea r 2010-11 2011-12 2012-13 "® July $541,806 $591,184 $636,778 $45,594 7 .7 % August 542,194 574,394 623,655 $49,261 8 .6 % September 437,543 490,523 508,580 $18,057 3 .7 % October 442,586 437,805 469,980 $32,175 7 .3 % November 330,924 347,436 356,285 8,849 2 .5 % December 274,417 314,784 318,791 :yr 4,007 1 .3 % January 256,351 276,165 February 302,246 323,383 March +• 333,783 392,266 April 451,133 475,91 2 May 433,874 447,808 June 512,542 578,234 Currently this report covers 38 establishments representing 2,127 rooms, including the addition in Ma y of 84 rooms at the Hampton Inn and the Granada Hotel, located at 1126 Mono Street, which officiall y opened its 17 room hotel in December . For More Information .Please call Jennifer Thompson, Revenue Supervisor, at (805) 781-7129 . DISTRIBUTION : City Council, Budget Review Team, Fiscal Officers,Department Heads, The Tribune, Economic Development Manager, John Lindt , Dave Kastner, Chamber of Commerce, Verdin Marketing, Pragna Patel, Business Times, New Times, SLO City News, SLO Journal B1-83 Financial Plan .The 2012-13 Financial Pla n estimated that TO T revenues in 2012-1 3 would be 3 .3% greater than the actual amount s received in 2011-12 . A t the mid-point of the year, we are doing slightly better than thi s forecast. As a result , staffs most pruden t professional judgemen t is to leave the TO T revenue growth assumption unchange d during the Mid-Year Budget Review . The revenues shown in this report are prepared on an accrual basis as of the end of the month. They are based on TOT amounts reported by operators but not necessarily remitted to th e City within the 30 days after month-end required by the City's TOT ordinance . D-3 city o f san Luis oslsp o Quarterly Investment Repor t As of September 30, 201 2 January 23, 201 3 This report presents the City's investment portfolio as of the quarter ended September 30, 2012 . It has been prepared to comply with regulations contained in California Government Code Section 53646 . The report includes all investments managed by the City on its own behalf as well as for other third party agencies on a fiduciary basis such as the Whale Rock Commission . It also includes all City-related investments held by trustees for bond debt service obligations . As required, the report provides information on the investmen t type, issuer, maturity date, cost, and current market value for each security . The investment objectives of the City of San Luis Obispo are first, to provide safety of principal to ensure th e preservation of capital in the overall portfolio ; second, to provide sufficient liquidity to meet all operatin g requirements ; and third, to earn a commensurate rate of return consistent with the constraints imposed by th e safety and liquidity objectives . The City follows the practice of pooling cash and investments for all funds under its direct control . Funds held by outside fiscal agents under provisions of bond indentures are maintained separately . Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund's average quarterly cash balance . Interest earned from cash and investments with fiscal agents is credite d directly to such funds . It is common for governments to pool the cash and investments of various funds t o improve investment performance . By pooling funds, cities are able to benefit from economies of scale , diversification, liquidity, and ease of administration . The City uses the services of an investment advisor, Chandler Asset Management, to manage a portion of th e City's portfolio . The City's strategy is to retain approximately 20% of the portfolio to manage our day-to- day cash flow needs, while Chandler's focus is on longer-term investment management . In addition, the Cit y has retained direct management of a few investments that were in the portfolio before Chandler began management . All investments are held by the City in a safe keeping account through Bank of New York , except for investments held by trustees related to bond financings, which are held by US Bank . Investment Portfolio by Fun d The City's cash and investment portfolio represents money from all City funds, including the General Fund , enterprise funds, capital projects funds, and other funds which are restricted to specific purposes . The table called "Summary of Portfolio Distribution" identifies the value of the investment and cash portfolio which i s attributed to the various funds . In general, funds in the City's portfolio are either allocated by the City Council for spending or ar e purposefully held in reserve . For example, the money in the Capital Outlay Fund has been identified t o provide particular capital projects for the community and there is a plan for spending down the cash balanc e as the projects progress . In the General Fund, about $10 million is purposely held in reserve to meet the City's reserve policy of 20% of operating expenditures . In other cases, funds are required to be spent o n particular purposes, such as Public Art or Affordable Housing . • • D-4 B1-84 • Quarterly Investment Repor t Current Portfolio Summary . The following is a summary of the City's cash and investments based on market value as of September 30 , 2012 compared with the prior quarter : June 30, 2012 September 30,2012 Percent of Portfolio Cash and investments held by the Cit y Cash and investments managed by Chandle r Cash and investments held by trustees 17,784,11 8 47,192,19 1 4,914,615 12,490,445 47,388,36 9 4,838,209 19 .30 % 73 .22 % 7 .48 % TOTAL $6 9,890,924 $64,717,023 100 % There are a number of factors which result in changes in cash and investment balances from month to mont h and quarter to quarter . Often they are the result of the receipt of revenues or a large disbursement . Som e major City revenues are received on a periodic rather than a monthly basis . Property Tax, for example, i s received in December, January, April and May of each year . Other revenues, such as Transient Occupancy Tax, are received monthly but vary considerably because they are seasonal . On the disbursement side , payments for bonded indebtedness or large capital projects can reduce the portfolio substantially in th e quarter that they occur . Significant fluctuations of this type will be discussed in the following section of thi s report . Securities in the City's portfolio are priced by IDC, an independent pricing service at the end of every month . In some cases, the City may have investments with a current market value that is greater or less than th e recorded value . These changes in market value are due to fluctuations in the marketplace having no effect o n yield, as the City does not intend to sell securities prior to maturity . Nevertheless, these market changes will • impact the total value of the portfolio as reported . For September 30, 2012 the market value of the portfoli o was $405,036 .98 higher than the cost basis . The portfolio's yield on a market basis as of September 30, 2012 was 0 .37%, and the yield on a cost basis was 1 .47%. As of September 30, 2012, the investment portfolio was in compliance with all State laws, the City's Statement of Investment Policy and the City's Investment Management Plan . Summary of Activity for the Quarter and Future Liquidity . Cash and investments held by the City, along with cash and investments held by trustees, decreased durin g this quarter . Cash managed by Chandler increased during the quarter as the city shifted cash deposits into th e managed portfolio . Cash receipts and disbursements during this quarter were generally consistent with pas t trends for this time frame . Notable exceptions were the payment that was made on July 1 for the City's participation in the Nacimiento water project and the payment of debt issuance costs related to the 201 2 Lease Revenue Bonds . At this time the cash management portfolio contains enough liquidity to meet the next six months o f expected expenditures by the City as related entities, such as the Whale Rock Commission . Report Contents and Distribution.This report includes the following four schedules on the City's portfoli o as of September 30, 2012 : summary of investments held or managed by the City, trustees or Chandler ; summary of investment portfolio liquidity ; Summary of Portfolio Distribution, and detail of holdings for each investment . • D-5 B1-85 Quarterly Investment Report If you have any questions concerning this report, or require additional information, contact Wayne Padilla , Interim Director of Finance at (805) 781-7125 . • • • D-6 B1-86 • Quarterly Investment Report DISTRIBUTION LIS T City Counci l Jan Howell Man, Mayor Dan Carpenter, Vice-Mayo r John Ashbaugh, Council Member Andrew Carter, Council Membe r Kathy Smith, Council Membe r April Richardson, Executive Assistan t Investment Oversight Committe e Wayne Padilla, Interim Director of Finance & Information Technolog y Michael Codron, Assistant City Manage r Katie Lichtig, City Manage r Independent Audito r Allen E . Eschenbach, Glenn Burdette Attest Corporatio n Other City Staff • Sallie McAndrew, Accounting Superviso r Rachel McClure, Administrative Analyst Jennifer Thompson, Revenue Superviso r Chandler Asset Management Nicole Dragoo, COO/Chief Compliance Office r Ted Piorkowski, VP/Portfolio Manage r Jayson Schmitt, VP/Portfolio Manage r • D-7 city of san Luis oBIspo SUMMARY OF INVESTMENTS As of September 30, 201 2 INVESTMENTS HELD AND MANAGED BY THE CITY Market Value Percent of Curren t Portfolio Yiel d Local Agency Investment Fund s Certificate of Deposi t Money Market Accoun t Checking Account Treasury Issues 33%0 .33%4,122,224 .83 8%0 .35%1,000,000 .00 8%0 .25%1,001,834 .6 1 41%0 .00%5,068,885 .1 6 10%7 .12%1,297,500 .0 0 Total Investments Held by the City 100%0 .88% $12,490,444 .6 0 INVESTMENTS HELD BY THE CITY AND MANAGED BY CHANDLER ASSET MANAGEMENT Market Value Percent of Curren t Portfolio Yiel d Federal Agency Issue s Money Market Fun d US Corporate Note s Treasury Issues Total Investments Managed by Chandler Asset Management 69%0 .38% 32,924,332 .73 0%0 .00%60,541 .3 3 13%0 .43%6,059,500 .75 18%0.28%8,343,994 .2 9 100%0.37% $47,388,369 .10 • INVESTMENTS HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATIONS Market Valu e Percent of Current Portfolio Yiel d First American Treasury Fund s Money Market Accounts Certificate of Deposi t Federal Agency Issue s Treasury Issues 2%0 .00%86,243 .8 7 2%0 .00%66,784 .6 5 16%3 .41%755,900 .20 10%4 .64%461,857 .50 71%4 .21%3,467,422.67 Total Investments Held by Trustees 100%3 .46% $4,838,208 .89 TOTAL CASH AND INVESTMENT S nvestments Held by the City and Trustees --Market Value • D-8 B1-88 • city of san Luis osispo SUMMARY OF INVESTMENT PORTFOLIO LIQUIDIT Y As of September 30,201 2 INVESTMENTS HELD BY THE CIT Y Managed Managed Percent of Market by City by Chandler Portfolio Valu e On Demand 10,192,944 .60 2,096,908 .90 21%12,289,853 .5 0 Within Six Months 3,306,482 .27 6%3,306,482 .2 7 Six Months to One Year 7,921,685 .88 13%7,921,685.8 8 Within One to Five Years 2,297,500 .00 34,063,292 .05 61%36,360,792 .0 5 Over Five Years 0%0.0 0 TOTAL 12,490,444 .60 47,388,369 .10 100%$59,878,813 .7 0 INVESTMENTS HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATIONS MarketPercent of Portfolio Valu e On Demand 3%153,028 .52 Within Six Months 0%0 .00 Six Months to One Year 0%0 .00 Within One to Five Years 25%1,217,757 .7 0 Over Five Years 72%3,467,422 .6 7 TOTAL 100%$4,838,208 .89 • TOTAL CASH AND INVESTMENT S Investments Held by the City and Trustees -- Market Valu e • D-9 B1-8 9 city of san Luis osispo SUMMARY OF PORTFOLIO DISTRIBUTIO N As of September 30, 2012 Percent of Portfolio Market Valu e INVESTMENTS HELD BY THE CITY General Fund 17%$ 9,896,638 .34 Enterprise Funds: Water Fund 17%10,444,941 .7 4 Sewer Fund 23%13,823,300.8 8 Parking Fund 13%7,973,823.2 6 Transit Fund 3%1,690,529.8 8 Capital Outlay Fund 2%1,181,931 .0 4 Other Capital Projects Funds 17%10,253,286 .0 7 Special Revenue Funds 1%426,083 .2 0 Agency and Other Funds 7%4,188,279 .2 9 Total 100%$59,878,813 .70 Fund balances are maintained for a variety of purposes . For example, the money in the Capital Outlay Fund has been identified to provid e particular projects for the community and there is a plan for spending down the cash balance as the projects progress . The Water Fund has accumulated fund balance in part to pay for the debt service and operational costs associated with the Nacimiento pipeline ; the Sewe r Fund is anticipating a major future upgrade at the treatment plant and is therefore accumulating fund balance in order to accommodat e that project. The Other Capital Projects and Special Revenue Funds categories include money that was collected through impact fees o r in-lieu fees and there are restrictions on how that money can be spent . These include : Public Art Fund, Transportation Impact Fee Fund , Airport Area Impact Fee Fund, Parkland Development Fund, LOVR Impact Fee Fund, and Affordable Housing Fund .• • D—10 B1-90 • city of san Luis oslsp o INVESTMENT DETAI L As of September 30, 201 2 HELD AND MANAGED BY CITYTHE Agency (Broker) Investmen t Description Coupon Rate Curren t Yield Purchas e Date Maturity Date Market Valu e Local Agency Investment Fund Money Market Fun d and Interest Receivabl e City NA 0 .33%Varies On Demand 4,055,251 .44 Local Agency Investment Fund Money Market Fun d and Interest Receivabl e CIB NA 0 .33%Varies On Demand 66,973.3 9 Bank of America Checking Account NA 0 .00%Varies On Demand 5,068,885.1 6 Mission Community Bank Collateralize d Certificate of Deposit NA 0 .35%12/20/2011 12/20/2013 1,000,000 .0 0 Missio n Community Bank Money Market Account and Interest Receivable NA 0 .25%1/24/2012 O n Demand 1,001,834 .6 1 B of NY Safekeeping U .S . Treasury Bond 9.25%7 .12%4/18/86 2/15/2016 1,297,500 .00 TOTAL $12,490,444 .60 • • D—li B1-9 1 city of san this osispo INVESTMENT DETAI L As of September 30, 2012 INVESTMENTS HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATION S Agenc y Broker)r r Maturity Date : Market Valu e U . S . Ban k Corporate Trust Services U .S Bank Mone y Market Account NA 0.00%Varies Varies . $0 .00 ,,,,...k ..:~~~ U . S . Ban k Corporate T rrusttServices iidltt3 _sr,b ;,i First America n Treasury Fund ....:.~:,..,....;:.m .m .. N/A 0 .00% ' Varies _,.t`_ Varies .... $0 .00rojoi,i .,.3801SyRE .w.wmr'ea OYeruC®' N/A 0 .00%Varies Varies $17,640.00 U . S . Ban k Corporate Trust Services First America n Treasury Fun d U . S . Ban k Corr orate Trust Services United States Treasury Bonds 6.00 % t,ttBIt 4 .10%6/26/96 2/15/26 $860,590.92 U . S . Ban k Corporate Trust Services First America n Treasury Fund N/A 0 .00 %Varies Varies $27,875.44 FSA Capita l Management Services LLC Guaranteed Investment Contract Treasury Fund 5 .54%5 .54%5/11/06 5/26/36 $1,000,813 .75 U . S . Bank Corporate Trust Services First America n Treasury Fund N/A 0 .00%Varies Varies $27,901 .69 FSA Capita l Management Services LLC Guarantee d Investment Contract Treasury Fund 5 .35%5 .35%8/17/06 5/28/36 $1,035,347 .50 U . S . Bank Corporate Trust Services First America n Treasury Fund N/A 0 .00% gym.° Varies Varies $12,826 .74 U . S . Bank Co orate Trust Service s - Collateralized Certificate of De•osit N/A 3 .41%4/20/2009 5/15/14 $755,900 .2 0 U . S . Ban k Corporate Trust Services :. U .S Bank Mone y Market Account N/A 0 .04%Varies Varies $10,089 .7 9 U . S . Ban k Corporate Trust Services United State s Treasury Bond 2 .00%1 .92%Varies 11/25/21 $234,895 .5 0 U . S . Ban k Corporate Trust Service s v United State s Treasu Bond 7 .13%4 .67%Varies 2/15/23 $335,775 .0 0 +ae a - U. S . Ban k Corporate Trust Services U .S Bank Money Market Account NA 0 .04%Varies Varies $56,694 .86 U. S . Ban k Corporate Trust Services Federal Agency Issues 5 .50%4.64%Varies 8/15/16 $461,857 .50 TOTAL ($4,838,208 .89 B1-92 • • D-1 2 • city of san lug s osisp o INVESTMENT DETAI L As of September 30, 201 2 MANAGED BY CHANDLER ASSET MANAGEMEN T The following pages provide a summary of the portfolio under management by Chandler Asset Management as well a s a detailed holding report for the month . • D-13 B1-93 city o f san Luis oBisp o Quarterly Investment Repor t As of December 31, 201 2 January 23, 201 3 This report presents the City's investment portfolio for the quarter ending December 31, 2012 . It has bee n prepared to comply with regulations contained in California Government Code Section 53646 . The report includes all investments managed by the City on its own behalf as well as for other third party agencies on a fiduciary basis such as the Whale Rock Commission . It also includes all City-related investments held b y trustees for bond debt service obligations . As required, the report provides information on the investmen t type, issuer, maturity date, cost, and current market value for each security . The investment objectives of the City of San Luis Obispo are first, to provide safety of principal to ensure th e preservation of capital in the overall portfolio ; second, to provide sufficient liquidity to meet all operatin g requirements ; and third, to earn a commensurate rate of return consistent with the constraints imposed by th e safety and liquidity objectives . The City follows the practice of pooling cash and investments for all funds under its direct control . Fund s held by outside fiscal agents under provisions of bond indentures are maintained separately . Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund's average quarterly cash balance. Interest earned from cash and investments with fiscal agents is credite d directly to such funds . It is common for governments to pool the cash and investments of various funds t o improve investment performance . By pooling funds, cities are able to benefit from economies of scale , diversification, liquidity, and ease of administration . The City uses the services of an investment advisor, Chandler Asset Management, to manage a portion of th e City's portfolio . The City's strategy is to retain approximately 20% of the portfolio to manage our day-to - day cash flow needs, while Chandler's focus is on longer-term investment management . In addition, the Cit y has retained direct management of a few investments that were in the portfolio before Chandler began management . All investments are held by the City in a safe keeping account through Bank of New York, except for investments held by trustees related to bond financings, which are held by US Bank . Investment Portfolio by Fun d The City's cash and investment portfolio represents money from all City funds, including the General Fund , enterprise funds, capital projects funds, and other funds which are restricted to specific purposes . The tabl e called "Summary of Portfolio Distribution" identifies the value of the investment and cash portfolio which i s attributed to the various funds . In general, funds in the City's portfolio are either allocated by the City Council for spending or ar e purposefully held in reserve. For example, the money in the Capital Outlay Fund has been identified t o provide particular capital projects for the community and there is a plan for spending down the cash balanc e as the projects progress . In the General Fund, about $10 million is purposely held in reserve to meet the City's reserve policy of 20% of operating expenditures . In other cases, funds are required to be spent o n particular purposes, such as Public Art or Affordable Housing . • • D-14 B1-94 • Quarterly Investment Report Current Portfolio Summary The following is a summary of the City's cash and investments based on market value as of December 31 , 2012 compared with the prior quarter: September 30, 2012 December 31, 2012 Percent of Portfoli o Cash and investments held by the Cit y Cash and investments managed by Chandle r Cash and investments held by trustees 12,490,445 47,388,36 9 4,838,209 14,768,696 22 .06% 47,442,113 70 .86% 4,737,553 7 .08 % TOTAL $ 64,717,023 $ 66,948,362 100% There are a number of factors which result in changes in cash and investment balances from month to mont h and quarter to quarter . Often they are the result of the receipt of revenues or a large disbursement . Som e major City revenues are received on a periodic rather than a monthly basis . Property Tax, for example, i s received in December, January, April and May of each year . Other revenues, such as Transient Occupanc y Tax, are received monthly but vary considerably because they are seasonal . On the disbursement side , payments for bonded indebtedness or large capital projects can reduce the portfolio substantially in th e quarter that they occur . Significant fluctuations of this type will be discussed in the following section of thi s report. Securities in the City's portfolio are priced by IDC, an independent pricing service at the end of every month . In some cases, the City may have investments with a current market value that is greater or less than th e recorded value . These changes in market value are due to fluctuations in the marketplace having no effect o n yield, as the City does not intend to sell securities prior to maturity . Nevertheless, these market changes wil l • impact the total value of the portfolio as reported . For December 31, 2012 the market value of the portfoli o was $248,761 .40 higher than the cost basis . The portfolio's yield on a market basis as of December 31, 2012 was 0 .38%,and the yield on a cost basi s was 1 .45%. As of December 31, 2012, the investment portfolio was in compliance with all State laws, the City's Statement of Investment Policy and the City's Investment Management Plan . Summary of Activity for the Quarter and Future Liquidit y Cash and investments held by the City, along with cash and investments managed by Chandler, increase d during this quarter . Cash held by trustees decreased during the quarter . These changes were due to th e receipt of property tax revenues and the payment of bond indebtedness that occurred during this quarter . During the previous quarter, there was a large payment that was made for the City 's participation in the Nacimiento water project which also contributed to the fluctuation in cash between quarters . Cash receipts and disbursements are generally consistent with past trends for the quarter . The cash management progra m contains enough liquidity to meet the next six months of expected expenditures by the City as well as b y related parties, such as the Whale Rock Commission . Report Contents and Distribution.This report includes the following four schedules on the City's portfoli o as of December 31, 2012 : summary of investments held or managed by the City, trustees or Chandler ; summary of investment portfolio liquidity ; Summary of Portfolio Distribution, and detail of holdings fo r each investment . • If you have any questions concerning this report, or require additional information, contact Wayne Padilla , Interim Director of Finance at (805)781-7125 . B1-9 5 D-1 5 Quarterly Investment Report DISTRIBUTION LIS T City Counci l Jan Howell Marx, Mayo r Kathy Smith, Vice-Mayo r John Ashbaugh, Council Member Andrew Carter, Council Membe r Dan Carpenter, Council Membe r April Richardson, Executive Assistan t Investment Oversight Committe e Wayne Padilla, Interim Director of Finance & Information Technolog y Michael Codron, Assistant City Manage r Katie Lichtig, City Manager Independent Audito r Allen E . Eschenbach, Glenn Burdette Attest Corporatio n Other City Staff Marjorie Hernandez, Accounting Superviso r Rachel McClure, Administrative Analys t Jennifer Thompson, Revenue Superviso r Chandler Asset Managemen t Nicole Dragoo, COO/Chief Compliance Office r Ted Piorkowski, VP/Portfolio Manage r Jayson Schmitt, VP/Portfolio Manager • • • D-16 B1-96 • city of san this osisp o SUMMARY OF INVESTMENT S As of December 31, 201 2 INVESTMENTS HELD AND MANAGED BY THE CIT Y Percent of Portfolio Curren t Yield Market Valu e Local Agency Investment Funds 41%0 .33%6,126,618 .3 3 Certificate of Deposit 7%0 .35%1,000,000 .0 0 Money Market Account 7%0 .25%1,002,479 .7 6 Checking Account 36%0 .00%5,365,148 .0 2 Treasury Issues 9%7 .25%1,274,450 .0 0 Total Investments Held by the City 100%0 .79%$14,768,696 .1 1 INVESTMENTS HELD BY THE CITY AND MANAGED BY CHANDLER ASSET MANAGEMEN T Percent of Current Market Portfolio Yield Value Federal Agency Issues 70%0 .38%33,030,350 .5 7 Money Market Fund 2%0 .00%1,089,169 .4 0 US Corporate Notes 11%0 .60%5,004,358 .4 7 Treasury Issues 18%0.27%8,318,234 .1 9 Total Investments Managed by Chandler Asset Manaqement 100%0.38%$47,442,112 .6 3 INVESTMENTS HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATIONS MarketPercent of Current Portfolio Yield Value First American Treasury Funds 1%0.00%68,119 .36 Money Market Accounts 0%0.00%2,253 .3 0 Certificate of Deposit 16%3 .41%755,900 .20 Federal Agency Issues 10%4 .67%459,022 .20 Treasury Issues 72%4 .23%3,452,258.34 Total Investments Held by Trustees 99%3 .54%$4,737,553.40 • TOTAL CASH AND INVESTMENT S Investments Held by the City and Trustees --Market Value • D-17 B1-9 7 city of san Luis osisp o SUMMARY OF INVESTMENT PORTFOLIO LIQUIDIT Y As of December 31, 2012 INVESTMENTS HELD BY THE CIT Y Managed Managed Percent of by City by Chandler Portfolio Marke t Value On Demand 12,494,246 .11 4,397,241 .44 27 % Within Six Months 6,128,598 .65 10 % Six Months to One Year 1,000,000 .00 2,645,726 .31 6 % Within One to Five Years 1,274,450 .00 34,270,546 .23 57 % Over Five Years 0% 16,891,487 .55 6,128,598 .65 3,645,726 .31 35,544,996 .2 3 0 .00 TOTAL 14, 768,696 .11 47,442,112 .63 100%$62,210,808 .7 4 INVESTMENTS TRUSTEE SHELD BY FOR BOND DEBT SERVICE OBLIGATIONS MarketPercent of Portfolio Valu e On Demand 1%70,372.6 6 Within Six Months 0%0.0 0 Six Months to One Year 0%0.0 0 Within One to Five Years 26%1,214,922 .4 0 Over Five Years 73%3,452,258.34 TOTAL 100%$4,737,553 .40 TOTAL CASH AND INVESTMENT S Investments Held by the City and Trustees -- Market Value • • B1-9 8D-18 • city of san Luis osisp o SUMMARY OF PORTFOLIO DISTRIBUTIO N As of December 31, 2012 Percent of Portfoli o INVESTMENTS HELD BY THE CITY Market Valu e General Fun d Enterprise Funds : Water Fund Sewer Fund Parking Fun d Transit Fun d Capital Outlay Fun d Other Capital Projects Fund s Special Revenue Funds Agency and Other Fund s Total 18% $11,282,925 .85 20%12,385,220.5 2 23%14,439,870.4 5 13%8,162,880.7 1 2%1,468,817.5 2 1%648,253.5 3 15%9,452,774.8 7 1%456,377 .8 9 6%3,913,687.4 0 100% $62,210,808 .74 Fund balances are maintained for a variety of purposes . For example, the money in the Capital Outlay Fund has been identified to provid eparticular projects for the community and there is a plan for spending down the cash balance as the projects progress . The Water Fundhas accumulated fund balance in part to pay for the debt service and operational costs associated with the Nacimiento pipeline ; the Sewe rFund is anticipating a major future upgrade at the treatment plant and is therefore accumulating fund balance in order to accommodat ethat project. The Other Capital Projects and Special Revenue Funds categories include money that was collected through impact fees o r•in-lieu fees and there are restrictions on how that money can be spent . These include : Public Art Fund, Transportation Impact Fee Fund ,Airport Area Impact Fee Fund, Parkland Development Fund, LOVR Impact Fee Fund, and Affordable Housing Fund . • D—19 B1-99 city of san Luis osispo INVESTMENT DETAI L As of December 31, 2012 HELD AND MANAGED BY THE CIT Y Agency (Broker) Investment Description Coupo n Rate Current Yield Purchas e Date Maturity Date Market Value Local Agenc y Investment Fund Money Market Fund and Interest Receivable City NA 0 .33%Varies On Demand 6,059,590 .6 1 Local Agency Investment Fund Money Market Fun d and Interest Receivabl e CIB NA 0 .33%Varies On Demand 67,027 .7 2 Bank of America Checking Account NA 0 .00%Varies On Demand 5,365,148.0 2 Missio n Community Bank Collateralized Certificate of Deposit NA 0 .35%12/20/2011 12/20/2013 1,000,000.0 0 Mission Community Bank Money Market Accoun t and Interest Receivable NA 0 .25%1/24/2012 O n Demand 1,002,479.76 B of NY Safekeeping U .S. Treasury Bond 9 .25%7 .25%4118/86 2/15/2016 1,274,450.0 0 TOTAL $14,768,696 .11 • D-20 B1-100 •city of san Luis osisp o INVESTMENT DETAI L As of December 31, 201 2 • • INVESTMENTS HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATION S Agenc y (Broker) ,_.~'.?_uT Investment Description Coupo n Rate Current Yield Purchase Date Maturit y Date Market Value U . S. Ban k Corporate Trust Services ••PSi'i .__. ___x„,.~..: U .S Bank Mone y Market Account NA ':~..,.::°:,5 ::.,.._pro;r~s;, Varies €HM_"_ $0 .000%Varie s U . S. Ban k Corporate Trust Services First America n Treasury Fund N/A 0 .00%Varies ` Varies $0 .00 200Si i -ruitng Leasegevenue Bonds :" N/A 0 .00%Varies Varies $0 .0 0 U . S. Ban k Corporate Trust Services First American Treasury Fund U . S. Ban k Corporate Trust Services United State s Treasury Bonds 6 00%4 .15 %6/26/96 2/15/26 $850,853 .6 4 U . S. Ban k Corporate Trust Services -r tr•.-$27,593 .41 FSA Capital Management Services LL r .5126/36 $1,000,813 .7 5 U . S . Ban k Corporate Trust Services First American Treasury Fund N/A 0 .00%Varies Varies $27,567 .4 2 FSA Capital Management Services L L ®•S Guarantee d Investment Contract Treasury Fund 5.35%5 .35%8/17/06 5/28/36 $1,035,347 .5 0Jr';. U . S . Ban k Corporate Trust Services First American Treasury Fund N/A 0 .00%Varies Varies $12,958 .5 3 U . S . Ban k Co •orate Trust Services Collateralized Certificate of De .osit N/A 3 .41 %4/20/2009 5/15/14 $755,900 .2 0 U . S . Ban k Corporate Trust Services U .S Bank Money Market Account N/A 0 .04%Varies Varies $2,250.6 5 U . S . Bank Corporate Trust Services United States Treasury Bond 2 .00%1 .93%Varies 11/25/21 $233,525.2 5 U . S . Ban k Corporate Trust Services United States Treasury Bond 7 .13%4 .72%Varies 2/15/23 $331,718.2 0 U . S . Ban k Corporate Trust Services U .S Bank Money Market Account NA 0 .00%Varies Varies $2 .65 U . S . Ban k Corporate Trust Services Federal Agency Issues 5 .50%4.67%Varies 8/15/16 $459,022 .2 0 TOTAL I $4,737,553 .40 B1-10 1D-2 1 city of san Luis osisp o INVESTMENT DETAI L As of December 31, 201 2 MANAGED BY CHANDLER ASSET MANAGEMEN T The following pages provide a summary of the portfolio under management by Chandler Asset Management as well a s a detailed holding report for the month . • • D-22 B1-102 Section E STATUS OF GOALS AND OBJECTIVES B1-103 STATUS OF GOALS AND OBJECTIVE S As of February 1, 201 3 city of san tins oBisp o B1-104 • STATUS OF GOALS AND OBJECTIVE S•As of February 1, 201 3 TABLE OF CONTENTS INTRODUCTION CARRYOVER GOALS AND OBJECTIVE S Overview 1 Other Important Council Objective s Report Card: Major City Goals and Creek and Flood Protection 3 3 Other Important Council Objectives 1 Skatepark 3 3 Report Card: Address as Resources Permit 2 Airport Area Annexation 3 3 Action Plan Changes 2 Broad Street Corridor Plan 3 3 Next Report 2 MAJOR CITY GOALS STATUS OF MAJOR CIP PROJECT S Status of Major Capital Improvement 3 5 Economic Development 3 Plan (CIP) Projects Preservation of Essential Services and 5 Fiscal Healt h Neighborhood Wellness 1 0 Traffic Congestion Relief 1 3 OTHER IMPORTANT COUNCI L OBJECTIVE S Open Space Preservation 1 9 Infrastructure Maintenance 2 2 Planning: Update Land Use and Circulatio n Elements 2 5 Affordable Housing/Homeless Services 2 7 ADDRESS AS RESOURCES PERMI T Climate Protection 3 1 Parks and Recreation 3 1 Historic Preservation 32 B1-10 5 • • INTRODUCTIO N OVERVIEW this level, with most showing good progress • This report details the status of Major City Goal s and Other Important Council Objectives set by the Council as part of the 2011-13 Financial Plan as o f February 1, 2013 . In general, we are on track i n accomplishing these objective s based on the work program s adopted by the Council . Report Card . The following is a quick "report card" on the status o f Major City Goals and Othe r Important Council Objectives base d on the "action plans" approved b y the Council as part of the 2011-1 3 Financial Plan . As a benchmark, at February 1 , 2013, we are about 75% throug h the two-year Financial Plan period . Most of the goals and objectives are near or exceed Organization . The "report card" is followed by a short summary of notable changes from the origina l action plan. After this is a more detailed report on each Major City Goal and Other Important Counci l Objective, which shows the objective, action plan a s adopted by the Council, an y revisions and a brief statu s summary as of February 1, 2013 . Revisions are displayed as follows : •Additions are shown in italics ; •Date changes are shown i n italics and highlighted in a separat e column; and •Deletions are shown i n strikeout . Im .ortant Not e Many of these are multi - year goals that have activities associated wit h them that go beyond th e two-year 2011-13 tim e frame . This status report is focused on approve d "Action Plan" tasks as of February 1, 2013 .Shorter reports are provided fo r "Address as Resources Permit" fo r 2011-13 as well as for "carryover goals" from 2009-11 . Report Card : 2011-13 Major City Goals & Other Important Council Objectives Percent Complete as of February 1, 2013 Per Actions Plan Task s MAJOR CITY GOAL S Economic Developmen t Preservation of Essential Services & Fiscal Healt h Neighborhood Wellnes s Traffic Congestion Relief OTHER IMPORTANT COUNCIL OBJECTIVE S Open Space Preservation Infrastructure Maintenanc e Planning : Update Land Use & Circulation Elemen t Affordable Housing/Homeless Services 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 % E-1 B1-106 • • • INTRODUCTION ReportCard : 2011-13 Address as Resources Permit Percent Complete as of February 1, 201 3 Climate Protection Parks and Recreation Historic Preservation 0%10%20%30°/90%60 %50 %40%70%100 %80 % • • E-2 ACTION PLAN CHANGE S As noted above, in general we are on track i n accomplishing these goals and objectives based o n the work programs adopted by the Council . Notabl e changes from the original action plans include th e following : Traffic Congestion Relief.Several of the tasks i n this action plan have been delayed as, at th e direction of the Council, staff have focused effort s on other priorities . These priorities include th e Chevron project, the Land Use and Circulatio n Element Update (LUCE) and the development of a n oversized vehicle parking ordinance . The biennial Traffic Operations Report will be incorporated a s part of the background analysis work bein g conducted by the LUCE update . It is anticipated that the background summary report will be completed i n April 2013 . Open Space Preservation .With the addition of th e Goldtree property acquisition in June 2012, revision s to include this area in the Conservation Plan fo r Reservoir Canyon Natural Reserve are require d before bringing it forward for final adoption . This i s anticipated in spring 2013 . Infrastructure Maintenance .Construction of th e Calle Joaquin Lift Station has been rescheduled t o summer 2013 because of additional time needed fo r land acquisition and addressing unanticipated costs . Affordable Housing/Homeless Services .Due to th e increasing number of individuals using their vehicle s as dwelling units, Council directed staff to focu s efforts on the establishment and evaluation of a saf e shelter pilot program that provides homeless person s with vehicles a safe place to temporarily par k overnight with the goal of eventually transitionin g them into permanent housin g In October 2012, due to the initial success of th e pilot program, staff received Council directio n regarding the establishment of a permanent progra m and development of a permanent safe shelte r ordinance . Initial outreach has begun to develop th e required municipal code changes to authorize th e expansion of the program to other location s throughout the City . NEXT REPORT We will present the next "formal report" to th e Council in June 2013 . In the interim, we will keep the Council up-to-date on the status of major projects through agenda reports, Council Notes an d other briefing opportunities . B1-107 MAJOR CITY GOALS - ECONOMIC DEVELOPMEN T ECONOMIC DEVELOPMEN T Objective . Increase focus on economic development . Support creation of head-of-household jobs throug h developing strategies for infrastructure, focusing on promising growth sectors, and expediting desired economi c activity. Expand collaboration with Cal Poly, Cuesta, business community and responsible agencies . Action Pla n Task Current Revise d Economic Development Strategic Pla n 1 . Create a Project Plan to guide development of the Economic Development Strategi c Plan . Complet e 2 . Conduct research and analysis with the assistance of local experts and utilize curren t census data to identify the characteristics that will define "head of household jobs" fo r the purpose of guiding the Strategic Plan process . Conduct baseline research o n metrics that may be used to evaluate progress towards accomplishment of the Majo r City Goal. Complet e 3 . Create a stakeholder group consisting of residents, business owners, property owners , and representatives of the County, Economic Vitality Corporation (EVC), Chamber o f Commerce, Downtown Association and other community groups to provide input o n the scope of work for the request for proposals (RFP). Complete 4 . Issue an RFP and scope of work for a contract to develop a City of San Luis Obisp o Strategic Plan for Economic Development . Complete 5 . Execute the consultant contract, develop strategic plan, and present recommende d Strategic Plan to Council for consideration including an implementation strategy fo r the 2012-13 fiscal year. 10/12 Complete 6 . Implement the new Economic Development Strategic Plan .Ongoin g Infrastructure in Expansion Area s 1 . Develop an RFP for the analysis of infrastructure requirements in the Margarita an d Airport areas, with a scope of work to include a strategy for phasing and financing o f key infrastructure components needed to move development forward and suppor t creation of head of household jobs . 3/1 3 2 . Develop and present a program for Council consideration based on th e recommendations in the report . 6/1 3 Colkiboration Committee .. . 1 . Continue to invest in the goals of the Collaboration Committee as a partner with th e County, Cal Poly, and the business community in improving the entrepreneuria l culture of the community in an effort to create head of household jobs . Continue to work with Cuesta College, the EVC and the business community to increas e opportunities that facilitate job growth . Ongoing Status Summary : 76% Complete . The following is a summary of accomplishments and important next step s for this goal . E-3 B1-108 • • • MAJOR CITY GOALS - ECONOMIC DEVELOPMEN T •Activity within the Economic Development Program included several exciting developments during this perio d such as : •The Economic Development Strategic Plan (EDSP) was adopted by the City Council on October 16 , 2012 . The document was informed by significant public outreach including four public workshops an d was guided by a steering committee of community stakeholders . Input from residents, the Chamber o f Commerce, the Downtown Association, the Economic Vitality Corporation, the Planning Commissio n and City Council contributed to a comprehensive and forward looking strategy for economic growth i n the City . Implementation of the strategy has already started with the Community Developmen t Organizational Assessment, which includes EDSP Strategy 1 .1 and actions relating to improving th e development review process . The Request for Proposals (RFP) for the infrastructure financing study i s drafted and will be scheduled for Council consideration in March 2013 . •On September 18, 2012, the City Council held a Study Session to provide an introduction to the Chevro n project . Development of the project Draft Environmental Impact Review (EIR) continues . In 2011, th e City Council reviewed a proposal by Chevron to enter into a development agreement with the City t o cover the long term phasing of both public and private development proposed for the property . Chevron would be responsible for the installation of more than 50% of the public facilities (such as transportatio n infrastructure) identified in the Airport Area Specific Plan over a 25-year period . Staff continues to mak e progress in discussions with Chevron Corporation regarding the development agreement . Two consultan t reports are currently under review by staff . The first, by Goodwin Consulting Group, is a fiscal an d economic impact analysis for the project which will help staff evaluate the public benefits of the project . The second is an analysis of the proposed reimbursement agreement concepts by Magis Associates t o identify the associated risks and recommend ways to mitigate risk . Discussion of the Developmen t Agreement in light of the report results is expected to proceed with the Chevron project team into th e •early spring . •The City Council-approved public-private partnership with Digital West Networks has resulted in th e completion of the fiber-optic cable ring around the City . This project has significantly improved Cit y technology redundancy and back-up benefiting public safety, emergency preparedness and genera l productivity. Assessing opportunities for additional expansion of broadband for business by a variety o f providers is part of ongoing staff focus . •The business friendly website (www.openforbusinessinslo .com),launched through a joint effort of th e City and the Chamber of Commerce, continues to promote doing business in the City to visitors an d locals looking to expand or locate a business . •Continuing steps in this program include implementation of the strategies for 2012-13 in the Economi c Development Strategic Plan . This work is underway with the following highlights : o The Collaboration Committee work has included collaboration on the incubator space called th e HotHouse located at 955 Morro . This facility has been expanded to include co-working space , year-round incubation of small companies, and the summer season incubation of student-le d business ideas . The efforts have been launched under the guidance and funding of Cal Poly wit h additional funding and in-kind contributions from local businesses helping with ongoin g expenses . A flyer was produced to market the HotHouse and launch the co-working space ; work on developing the space at 955 Morro is making great progress . Both Economic Developmen t and Community Development staff work with businesses that need help finding and permittin g new locations . Staff continues to offer direct responses to requests for help as well as utilizin g the pre-application and quick response team formats to provide thorough and timely informatio n and service . o The Tourism program has quickly become embedded in the Economic Development Program . Efforts of the Tourism Manager have already highlighted new ways to capitalize on the City's cultural industries to attract visitors and benefit residents . E-4 B1-10 9 • MAJOR CITY GOALS - PRESERVATION OF ESSENTIAL SERVICES AN D FISCAL HEALTH • PRESERVATION OF ESSENTIAL SERVICES AND FISCAL HEALT H Objective . Adopt a budget that sustains the city's short and long-term fiscal health, preserves public health an d safety and other essential services in line with residents' priorities, and includes cost reduction strategies . Action Plan Task Current Revise d Continue empkssis on effectiveness and effcrency_of City organization 1 . Identify candidate departments for one structured organizational review . Issue request for proposals (RFP) for consulting services to systematically addres s operating performance, cost reductions, and opportunities to improve service . Complete reviews and present to City Manager . 12/12 4/1 3 2 . Continue to review and implement ideas for savings or increased revenues a s recommended by staff and community members .Ongoin g 3 . Evaluate at least four opportunities for managed competition in City functions a s identified in prior and current organizational reviews .Ongoin g 4 . Perform focused overview of City's organizational structure to identify potential fo r reorganization, combination, or other modifications to improve efficiency and reduc e cost. 12/12 Ongoing 5 . Using framework set forth in the initial 2006 analysis, benchmark key City financia l and outcome measures with comparable communities . Develop a schedule for updating benchmark analysis on a recurring basis . 12/12 8/1 3 6 . Determine viability and cost versus savings potential of changes to variable frequenc y drives of certain large motors in existing facilities, and expanded lighting control, fo r possible inclusion in the 2013-15 Financial Plan . jt .I~ ~)"` ~ ;;rbotyafyata ttt;t.."~4 ~CHnntan Resonrcepn -- 6{}3 Complet e ~" 1 . Develop short term and long term strategy for personnel cost containment and receiv e approval from Council prior to labor negotiations . Complet e 2. Negotiate cost containment actions through ongoing negotiation process with al l employee groups . Complet e 3 . Establish a process to periodically review and monitor personnel costs and the impac t of those costs on overall financial health . s'a v'Q t'1 'slrenpue Ott +3t `_ ~'t ?'$Yh 1^..it6 i _•-.i dt v=xnS .. ^3b mv : 1 . Examine threats to the City's Utility Users Tax revenue from federal and stat e legislation . Identify actions and develop plan to address problems as needed . Ongoing w :_ _: ,... 11/12 '' Complete 2. Conduct Business License Tax audit with Franchise Tax Board data .12/12 Complete E-5 B1-110 • • • • MAJOR CITY GOALS - PRESERVATION OF ESSENTIAL SERVICES AN D FISCAL HEALT H Tas k 3 .Conduct Transient Occupancy Tax audits . Current 3/13 Revise d Ongoing 4 .Explore the possibility of establishing a storm drain utility and receive Counci l direction .-2ii,Future Wow ttb Coum i4 and the CUmmu tv renew k4 gasure Y..P : 1 .Hire consultant to conduct public opinion research .Complete 2 .Conduct public opinion research .Complete 3 .Present survey results and analysis to Council .Complete 4 .Determine optimal timing of ballot measure .Complete 5 .Initiate public information/education program. a rand,SSilos +i Y bC a t,r r artatfi~$ust rtlbtf t 1 .Refine five-year capital improvement program that will responsibly protect the Cit y 's infrastructure assets, including building facilities, and develop plan for funding a s needed . Ongoin g f 12/12 t ~' 6/1 3 2 .Update Fleet Management Policy to reflect revised fleet life cycles . Develop long - term fleet replacement schedule .Complete 3 .Evaluate Information Technology replacement needs. Develop long-term replacement schedule .3/1 3 4 .Identify funding strategies for Fleet and Information Technology replacement needs . Establish intemal services funds if determined to be appropriate . 443 10/1 3 5 .Review liability and workers compensation claims trends and establish a plan o f funding if needed . 4 t gyres On1,k4 City o nti 1 .Update General Fund Five-Year Forecast at least twice annually, at mid-year and wit h recommended budget . Ongoing Ongoing 2 .Prepare focused reports on areas of interest to city management and Council .Ongoing Status Summary: 75% Complete . The following is a summary of accomplishments and important next step s for this goal . Cost Savings The 2011-13 Financial Plan includes an expectation that the City will realize cost savings through efficiency an d effectiveness measures implemented over the two-year financial plan period . These savings measures includ e ideas generated by the public through the financial plan process and by staff through ongoing review of the City's E-6 B1-11 1 MAJOR CITY GOALS - PRESERVATION OF ESSENTIAL SERVICES AN D FISCAL HEALTH • operating budgets . As a result, the City pursues bi-annual organizational assessments for operating departments i n order to improve efficiencies within City operations . These assessments are done by third party consultants an d the review recommendations are intended to result in savings for years to come . Currently an organizationa l assessment of the Community Development Department is underway with a projected completion date of Apri l 2013 . Implementation of the recommendations will be accomplished over the next 12 months . The City als o initiated a formal review of the potential for consolidation of the Public Works and Utilities Departments .A consultant was hired to evaluate the consolidation, and in October 2012, the final report was received with a recommendation not to consolidate the departments . The City Manager concurred with this recommendation . Additionally, City staff is formalizing the process whereby ideas for cost-savings generated by efficienc y measures and organizational assessments will be measured . Staff initiated the process of implementing an d accounting for these ideas . Part of this effort is the continued review of contractual obligations and renegotiatio n of terms . Through this effort, the City was able to refinance lease revenue refunding bonds in June 2012 that wer e used to fund various land purchases and improvements at the Damon-Garcia Sports Fields . This will result i n approximately $65,000 in annual savings to the General Fund from 2013 through 2029 . Personnel Cost Containmen t The 2011-13 Financial Plan also assumed employee concessions to achieve a balanced budget and long ter m financial stability while retaining General Fund reserves at or near policy levels . Council provided staff with labo r relations objectives in September 2011 and these objectives were shared with all employee groups wit h agreements expiring at year end . The objectives include a $3 .1 million City-wide reduction of total compensatio n costs and pension cost containment or reductions . A resolution adopted by Council on December 6, 2011 shifte d the entire eight percent employer paid member contribution (EPMC) to unrepresented management, departmen t head, and appointed officials effective January 5, 2012 . The resolution also introduced a second tier pensio n benefit and included no cost of living increases or changes to the City contribution to health insurance for the ter m of the resolution . A resolution adopted by Council on March 6, 2012 approved a four-year agreement with th e International Association of Firefighters Local 3523, phasing in the full nine percent EPMC to the employees , introduced a second tier pension benefit, and included no cost of living increases for the term of the agreement .A resolution adopted by Council on April 10, 2012 approved phasing in the entire eight percent EPMC t o unrepresented confidential employees, introduced a second tier pension benefit, and included no cost of livin g increases or changes to the City contribution to health insurance for the term of the resolution . A resolutio n adopted by Council on May 15, 2012 approved a three-year agreement with the Police Staff Officer's Associatio n (SLOPSOA), phasing in a 4 .5% salary reduction (as these employees paid the full member contribution t o Ca1PERS), introduced a second tier pension benefit, included no cost of living increases for the term of th e agreement, and included no increase in the City contribution to health insurance until December 2014 . Also o n May 15, 2012, Council approved a letter of agreement with the Fire Battalion Chiefs' Association (BCs), phasin g in 7 .5% salary reduction (as this unit paid the full member contribution to Ca1PERS) and introducing a second tie r pension benefit consistent with the agreement with the Fire Union . A resolution adopted by Council on June 19 , 2012 approved a three-year agreement with the San Luis Obispo City Employees Association (SLOCEA), phasing in the entire eight percent EPMC shift to the employees . A resolution adopted by Council on October 16 , 2012 approved a four-year agreement with the San Luis Obispo Police Officers Association (POA), phasing in a 4 .0% salary reduction . POA agreed to pay an additional 3% toward CaIPERS Pension costs (this unit currentl y pays the full member contribution to Ca1PERS). These agreements included second tier pension benefit for Polic e Safety and Miscellaneous employees . Together, these agreements, when fully implemented achieve $3 .2 million in ongoing annualized savings . Measure Y On December 13, 2011, City staff presented the results of the 2011 Citizen Satisfaction Survey to the Cit y Council with a recommendation to direct staff to continue to evaluate placing the reauthorization of the City's half-cent sales tax (Measure Y) on the general election ballot in November 2012, and return to the City Council i n spring 2012 with an update . The Council accepted this recommendation and staff moved forward with an outreac h effort. Information gathered through this effort informed staff's recommendation regarding the timing of Measur e Y reauthorization. Staff provided the Council with an update and recommendation on June 5, 2012 . Counci l E-7 B1-112 • • MAJOR CITY GOALS - PRESERVATION OF ESSENTIAL SERVICES AN D • FISCAL HEALT H • • determined not to place Measure Y renewal on the November 2012 ballot . The Council will have an opportunit y to place Measure Y before the voters for renewal in November 2014 . During the 2013-15 Financial Pla n development process, staff will provide Council with additional information regarding options for addressing th e potential loss of Measure Y revenue if renewal is not placed on the ballot or if the half-cent sales tax is no t reauthorized by voters . Long Term Liabilitie s A five-year capital improvement plan is being developed as part of the 2013-15 Financial Plan process . Implementation of work and asset management software in the coming year will assist departments in capturin g and tracking infrastructure information and needs . A stormwater utility was considered several years ago but abandoned after court decisions were made regardin g the ability of cities to establish these utilities . The State will release a new General Storm Water Permit in the near future. After analysis of that permit is complete, a better picture of the needs of the organization to meet th e permit requirements will be known and a more comprehensive presentation to Council will be made . At that time, the Council may determine the desirability of putting a measure on the ballot for the establishment of a stormwater utility . Benchmark Stud y The benchmark cities used in the 2006 study were reviewed to determine if they are still comparable to San Lui s Obispo . For the updated benchmark study, the City of Ventura will be removed and the cities of Paso Robles an d Santa Monica will be added in order to provide as accurate a comparison as possible . Using framework set forth in the initial 2006 analysis, Finance staff have begun compiling key financial and outcome measures of San Lui s Obispo and the comparable communities . The Department Head team reviewed the list of benchmarks used in 2006 and provided input for the current study . Due to limited available staff in the Finance Department , completion of this study has been delayed . Utility User Tax (UUT) Analysis and Potential Ballot Measur e Staff explored cost-effective options for a review of the City's UUT practices, and on September 20, 2011 , Council approved such a contract with MuniServices . This agreement provides for a UUT compliance an d revenue protection program and will assist the City in identifying and correcting errors or omissions that caus e under-realized revenues . Additionally, these services include assistance with development of a ballot measur e aimed at updating the City's UUT ordinance language and protecting it against erosion due to new legislation o r lawsuits . The citizen satisfaction survey mentioned above also included questions related to a potential UU T ballot measure so that Council can decide how to proceed . On June 5, 2012, staff asked Council for guidance, an d on July 10, 2012, Council approved placing a measure modernizing the UUT ordinance on the November 201 2 ballot. Staff developed a fact sheet about the ballot measure which was mailed to City residents with utility bills , placed on the City website and provided at public counters in City buildings . The ballot measure wa s overwhelmingly passed by 83 .5% of voters in November 2012 . Notification regarding the new ordinance has bee n sent to utility service providers . According to the new ordinance, collection of the tax must begin no later tha n April 1, 2013 . Equipment Replacement Fundin g Staff have reviewed all fleet equipment assets and completed a comprehensive equipment replacemen t spreadsheet which identifies the timing of projected fleet purchases and the replacement funds needed over th e life of the assets . The new Fleet Manager is currently working on developing a condition assessment form for al l equipment . However, due to competing work priorities, such as filling the vacant Fire Mechanic position, it i s unlikely that this will be completed in time for the 2013-15 Financial Plan development . Staff continue to provid e information on the condition of all vehicles and revise the fleet replacement schedule accordingly . Information Technology (IT) staff are now creating a similar spreadsheet for IT hardware and software . On December 18, 2012, the Council approved the establishment of an IT Replacement Fund to provide for the timel y replacement of IT resources, both hardware and software, with an individual replacement cost of $25,000 or more . E-8 B1-113 MAJOR CITY GOALS - PRESERVATION OF ESSENTIAL SERVICES AN D FISCAL HEALTH • The City will begin building the fund balance with the long term objective of maintaining a minimum fun d balance of at least 20% of the original purchase costs of the items accounted for in this fund . Business License Tax Audi t After a successful effort to ensure business license compliance from residential rental property owners, staff completed a City-wide business license tax audit . With cooperation from the Downtown Association, the effor t began in the Downtown core area . Staff canvassed this area, recorded the names of businesses that did not appea r in the City's business license database, HdL, and notified these businesses of the requirement to hold a license i f conducting business in the City . This process resulted in five new business licenses issued in the Downtown are a which generated an additional $1,828 in revenue in 2012 . The next step in this project utilized data from th e Franchise Tax Board (FTB). This information was cross-checked with the data in HdL and reviewed fo r anomalies to confirm which businesses were not in compliance and are subject to the enforcement process . During this review, it was determined that all businesses were in compliance . Staff are also working with the City Attorney's Office to streamline the current citation and collections process to ensure the effectiveness of thes e methods . Staff have begun the process of sending non-compliant businesses to collections earlier than has bee n done in prior years . Departmental Efficiencie s On January 17, 2012, Council approved the Water Reclamation Facility Sustainable Solutions Turnkey energ y efficiency project investment grade analysis and 50% project design . This project is a public/private partnershi p with PG&E that will look comprehensively at the viability and cost of efficiencies at the facility . The investment grade analysis is moving forward with an estimated completion date of January 2013 . Staff will return to Counci l in May 2013 with a recommendation for this project based on the completed study and preliminary design . Staff will return to Council at a later date to explain the financing options for the project . Construction is projected t o begin on the first phase in early fall 2013 with completion anticipated by the end of 2014 . The Public Works Department has recently obtained a 1% loan to complete conversion of the street light system to LED lights, saving nearly $100,000 annually . This savings will initially be allocated to loan payment, bu t ultimately, utility costs will be reduced along with the City's carbon footprint . In January 2011, PG&E conducte d an audit, including recommendations for the replacement of variable frequency drives at City facilities . As a result, work is occurring on the main circulation pump at the Sinsheimer Swim Center, and a project proposed a s part of the 2013-15 CIP will replace the HVAC roof chiller at the Police Station . Replacing these drives will position the City to be eligible for rebates through PG&E . Five Year Fiscal Forecas t Staff updated key revenue assumptions and provided updates to the five-year fiscal forecast for both the 2011-1 2 Mid-Year Review and the 2012-13 Financial Plan Supplement . The updates were key to monitoring the City's long-term financial sustainability . Staff also completed a formal comprehensive update to all aspects of the five - year fiscal forecast and presented it to Council in December 2012 . This forecast will be a valuable resource to ai d in decision making during the 2013-15 Financial Planning process . Staff will continue to provide updates to th e forecast as indicated, incorporating analysis on personnel costs and the impact of these costs on the City's overal l financial health . E-9 B1-114 • MAJOR CITY GOALS - NEIGHBORHOOD WELLNES S •NEIGHBORHOOD WELLNES S Objective . Embrace and implement pro-active code enforcement and Neighborhood Wellness Policies . Action Plan Task Revise dCurrent 1 . Community coordination on new program elements .Ongoin g 2 . Review City policy regarding voluntary compliance & evaluate Neighborhoo d Services Team . Ongoin g 3 . Create new job classification of Neighborhood Services Specialist .Complete 4. Develop public outreach program .Complete 5 . Public outreach campaign .Complete 6 . Hi re additional staff.Complete 7 . Train new staff.Complete 8 . Begin "soft start" of program .Complet e 9 . Council review of proposed changes to Municipal Code and code enforcemen t procedures manual . Complet e 10 . Begin full enforcement efforts .Complet e 11 . Monitor progress and solicit feedback from external stakeholders .Ongoin g 12 . Database enhancements and information sharing improvements .Ongoing Status Summary : 90% Complete .The following is a summary of accomplishments and important next step s for this goal . Internal Collaboratio n Internal collaboration has been ongoing in the hiring of the new Neighborhood Services Specialist (NSS ) positions . The Neighborhood Services and Parking Services offices collaborated with Code Enforcement's request for input and suggestions on the NSS job description, interview questions and interview pane l representation . The Neighborhood Services Manager provided Code Enforcement with the current Neighborhoo d Enhancement Ordinance (NEO) enforcement training manual and printed NEO outreach and education material s which have been modified to reflect the new positions . An ongoing effort associated with the Neighborhood Wellness objective is cross-training staff within severa l departments to enhance enforcement and response efforts . Collaboration between Police, Fire, Parking Service s and the Code Enforcement Office has been established so the appropriate enforcement personnel are aware o f existing problems and can handle them efficiently . As an example, during a parking citation appeal one violato r indicated parking was difficult at the house he lived in because there were six residents . The Parking Manage r forwarded the information to the Code Enforcement Officer for follow-up . Additionally, the Police Departmen t Student Neighborhood Assistance Program (SNAP) employees report violations observed during their late nigh t parking and noise shifts . E-10 B1-11 5 • • MAJOR CITY GOALS - NEIGHBORHOOD WELLNES S Policy Review Staff was directed to review practices related to voluntary compliance of the regulations to determine when it i s appropriate to escalate the level of enforcement efforts . As suspected, there were uneven levels of enforcemen t efforts between City departments responsible for these activities . For example, some departments escalat e enforcement very quickly while other departments allow time for compliance efforts . As a result of the review o f policies and practices, it was determined that strategic escalation of enforcement should occur Citywide . The City Council adopted a modified administrative citation process as one of the many tools to transition from complain t driven to proactive code enforcement process . The process now includes three levels : a Notice to Correct (NTC), a Notice of Violation (NOV) and Administrative Citations . The Notice to Correct notifies the violator of the cod e violations, warns of possible fines and establishes a timeline for action by the violator to avoid fines or fees . Based on the City's cost recovery for code enforcement policies, fees will be doubled for any permit issued t o correct code violations . If no action is taken within the prescribed timeline, a Notice of Violation will be sent . The NOV include s additional cost recovery charges and an additional warning of impending citations . If the violator does not correct the violation within 10 days, staff will begin the administrative citation process . This new process does not appl y to the enforcement of noise violations, which are already subject to the issuance of formal warnings for initia l violations and Administrative Citations for both the offender and the property owner for subsequent violation s within any nine-month period . Additionally, no changes are necessary for parking violations . There is an initia l warning for parking in yards or blocking a public sidewalk . If the violation cannot be corrected immediately,a citation is issued . Per Council's direction, in November 2011, the Neighborhood Services Team (NST) met with the Police Chie f and new Community Development Director to consider the involvement of neighborhood residents on the Team . After discussing several ways to keep community members meaningfully involved, it was decided that Cit y resident "neighborhood stewards" will be invited to attend monthly NST meetings led by the Neighborhoo d Services Manager and the Chief Building Official . The Neighborhood Services Team is meeting quarterly t o share division specific updates and offer feedback on current projects ; however, at the January meeting, frequenc y of the team meetings will be discussed with a potential change made to meet more often . Further discussion o n community connectivity led to the creation of monthly "Neighborhood Wellness" meetings which have been hel d at the Ludwick Community Center on the first Thursday of the month since May 2012 (December and Januar y meetings were cancelled due to the holidays and the multiple community meetings in January .) Neighborhoo d Wellness meetings allow for updates to be shared from Parking Enforcement, Community Development an d Police on neighborhood wellness specific outreach and enforcement . Each meeting also allows for attendees t o voice specific concerns and ask questions of staff. Attendance has begun to dwindle with an average non-staf f attendance around seven (7). Public Outreac h Staff received input from the neighborhood and student groups regarding the public outreach efforts . Because this audience is a diverse group, efforts were made to extend outreach through multiple media sources . A portion o f the Police Department's marketing contract with Verdin Marketing Inc . was used to update the websit e www .respectslo .com as well as create an "Office of Neighborhood Services" social networking page o n Facebook . Both web based sources give excellent resource information for residents . In addition, the Communit y Development Department created a user friendly brochure for the Neighborhood Services Specialists to distribut e during their daily outreach activities . The Police Department also created a refrigerator magnet to distribute o n campus that provides the website address to increase connectivity to the students . The Neighborhood Outreac h Manager conducted visits to Cal Poly to share noise abatement information to the PanHellenic Council, numerou s fraternities and fall sports teams, W .O .W . leaders and new students during orientation . Finally, the Polic e Department purchased graphic design software and the first issue of the reincarnated Neighborhood Service s Newsletter will be released in late February 2013 . Frequency of production will most likely be quarterly an d provide yet another level of resource information to the community . Communication with the community will b e ongoing as programs achieve the greatest amount of code compliance through education and outreach . Upcomin g E-11 B1-116 • • • MAJOR CITY GOALS - NEIGHBORHOOD WELLNES S public outreach will include more presentations to Greek organizations as well as the Mustang Daily-sponsore d housing fair, Campus Housing Fair in late spring, and the Cal Poly Diversity and Inclusiveness Colloquium . Front Yard Parkin g The Council directed the Community Development Department staff to revise and clarify regulations regardin g where vehicles can be parked in the front yards of residences . Parking in front yards outside of the driveway ha s been an ongoing issue in some neighborhoods, particularly in parking districts with a limited number of on-stree t parking permits . The new regulations adopted in May 2012 are a component of the Neighborhood Wellness Majo r City Goal and enforced by the Neighborhood Services Specialists . Communication with neighborhood groups , students, and property owners has been critical to the successful implementation of the new regulations . Citation s have been issued and staff continues to discuss the parking regulations and enforcement with the Studen t Community Liaison Committee (SCLC), Residents for Quality Neighborhoods (RQN), and Cal Poly Associated Students, Inc . (ASI). Transition of Dutie s NEO duties have been transitioned from the Police Department Student Neighborhood Assistance Progra m (SNAP) to the Community Development Department Building and Safety Division . Based on the timeline s identified in the work plan, NEO transitioned from SNAP to the Neighborhood Services Specialists in June 2012 . The Neighborhood Services Specialists are fully trained and conducting active enforcement in the neighborhoods . A recent hire was made and both Code Enforcement and Neighborhood Service Specialist positions are filled . Increased Caseloa d As anticipated, the addition of two Neighborhood Services Specialists and the Neighborhood Parking Officer ha s increased the combined code enforcement case load more than 56%. Active code enforcement cases receive d from June 1, 2012 through December 31, 2012 totaled 708, up from 455 in the previous seven-month period . The number of City-initiated cases, which includes cases initiated by code enforcement staff and cases referred b y other City employees, has also risen drastically . Since the beginning of June 2012, 246 cases were initiated b y City staff During the prior seven- month period, only 118 code enforcement cases were initiated by City staff . This is an increase of 108% in City-initiated cases . It should be noted that the number of City-initiated cases for the periods noted above has been substantially unde r reported. This was due to the fact that cases were not entered into the violation tracking system when same da y corrections of violation occurred upon contact by staff with the owner/occupant . This practice has changed an d now all violations discovered and contacts initiated will be recorded in the system. This is necessary to properly track repeat violations and to properly report statistical data regarding the program's productivity an d effectiveness . Process Improvement s In an effort to improve the effectiveness of its code enforcement programs, the Building & Safety Division i s currently reviewing existing processes and procedures . Some potential improvements have been identified whic h include developing standardized forms for Notices to Correct and Notices of Violation, the deployment of mobil e data devices, creation of a standard Abatement Agreement, and improved case tracking and reporting . In addition, the potential deployment of various enforcement tools such as liens for uncollected fines and Notices of Pendenc y are being considered . • E-12 B1-11 7 • • MAJOR CITY GOALS - TRAFFIC CONGESTION RELIE F TRAFFIC CONGESTION RELIE F Objective . Continue efforts on projects and programs which relieve traffic congestion (like street modifications , intersection improvements, pedestrian improvements, bicycle facilities, sidewalks, trip reduction programs, traffi c signal operations, LOVR interchange, Prado Road and public transit). Action Plan • 1.Complete and present 2010 Annual Traffic Safety Report to Council for approval . Complete 2.Complete and present 2010/11 Biennial Traffic Operations Report toCouncil for approval . bated 4/13 E-13 B1-118 • MAJOR CITY GOALS - TRAFFIC CONGESTION RELIE F Task Current Revised hi'LUCE update. lndcpcndcn reporting after LUC€ is- eett, 3 . Implement Safety & Operations Report Recommendations . Ongoing 4 . Complete and present 2011 Annual Traffic Safety Report to Council for approval . 2/13 4/1 3 • 1.Complete design .Complete Complete 2.Acquire railroad approvals / Begin construction . Complete Complet e 1 . Complete design . Complet e 2 . Begin construction . 1/1 3 3 . Complete Traffic Signal Timing and Operations Optimization . 3/1 3 1 . Complete design .Complete 2 . Begin construction.10/12 Complete 3 . Complete construction .12/12 Complete • 1.Complete construction plans and specifications . 2.Complete right of way acquisition . 5/1 3 2/33 6/1 3 E-14 B1-11 9 MAJOR CITY GOALS - TRAFFIC CONGESTION RELIE F Task Current Revised 3 . Pursue additional funding. Ongoin g 4 . Implement phased improvements as new development occurs and fees are collected in the Ongoing LOVR sub area . 5 . Complete detailed preparation of Bonded Indebtedness of local funding component . TBD • raffle Management Improvement s 1 . Complete design.Complete 2 . Begin construction . Complete 3 . Complete post project Studies . Complete 1 .Begin Update of the Bicycle Transportation Plan . 2 .Update the City's Bicycle Transportation Plan to maintain eligibility for state gran t funding . 1 . Complete project design . Complet e 2 . Begin construction . Complet e Complete 8/13 • 10/12 Complete 2.Pursue additional funding .Complete 3.Award contract and begin construction .4/1 3 1 . A . Obtain preliminary California Highway Patrol (CHP), Union Pacific Railroad (UPRR), an d Public Utilities Commission (PUC) approvals . B . Obtain final CHP, UPRR, and PUC approvals . 6/1 3 6/1 4 2 . Complete project design .12/1 3 E-15 B1-120 • MAJOR CITY GOALS — TRAFFIC CONGESTION RELIE F Task Current Revise d 3 . Pursue additional funding . ,,'',..ii :.1...i 866 Trail Connection t o '... 1 . Pursue outside funding for trail connections . Ongoin g Ongoing 2 . Complete construction drawings . 3/1 3 1 . Seek/obtain funding for study . Complet e 2 . Complete project study . 2/1 4 3 . Pursue additional funding . Ongoin g 4 . Complete project design and environmental review . TB D 5 . Complete construction drawings . TB D 6 . Complete construction . TB D 1 .Complete curb ramps, sidewalks, on-street bicycle facility paving, and stripin g improvements in conjunction with City street paving projects . Ongoing 2 .Implement Neighborhood Traffic Management program and projects .Ongoin g 3 .Conduct bi-annual vehicle, bicycle traffic counts, speed surveys and travel time studies .Ongoin g 4 .Complete miscellaneous bicycle facility improvements identified in the Bicycl e Transportation Plan, as resources permit . Ongoin g 5 .Develop a list, in conjunction with the Bicycle Committee, of streets that would benefi t from increased street sweeping and coordinate with Street Maintenance to us e miscellaneous sweeping hours, when available, to increase frequency . Ongoing 6 .Seek funding for the design and construction of bikeways and pedestrian paths within th e city . Ongoing 7 .Seek funding to educate and promote bicycling, walking and transit as alternative forms of transportation . Ongoing 8 .Provide more bicycle parking through the City's "Racks with Plaques" program .Ongoing Status Summary : 60% Complete .The following highlights key accomplishments so far and important nex t steps : Various projects and activities have been delayed due to the extended absences of several key staff in th e Transportation division . Details on progress and delays are listed below . E-16 B1-12 1 MAJOR CITY GOALS - TRAFFIC CONGESTION RELIE F The Los Osos Valley Road Interchange project was delayed due to a lawsuit filed by adjacent property owners . With the lawsuit now resolved, right of way acquisitions can proceed . The construction plans are 90% complete , and appraisals for the needed property and easements are being updated . Additional traffic congestion relief efforts on Los Osos Valley Road have been completed or are currently unde r design, such as the completion of the third westbound through lane between Madonna Road and Laguna Lane an d the design progress on a left turn pocket east of Froom Ranch Way . The developer of the first residential subdivision within the Margarita Area Specific Plan has submitted publi c improvement plans for the Prado Road extension abutting the subdivision . Significant grading and drainage work has been started and the developer has submitted building permit applications for the model homes . The installation of a traffic signal at Grand and Highway 101 is complete . Circulation modifications at the intersection of Foothill and Tassajara are complete . Construction of downtown beautification improvements is complete . The Pismo and Buchon Neighborhood Traffic Management improvements have been well received by a majorit y of the public . Post project studies have shown that the traffic calming has resulted in a significant improvement . Improvements completed along the Bob Jones City-to-Sea Trail include the installation of a bridge over San Lui s Obispo Creek to provide a d irect connection to the intersection of South Higuera and Prado Road . Traffic Impact Fund review has delayed start of construction, which is currently anticipated to start in the spring of 2013 . The Tank Farm/Broad intersection improvements and the mid-Higuera improvements are now constructed, wit h the installation of a small median upcoming . Street paving work for 2011 and 2012 is complete . Design work is underway for 2013 Microsurfacing and Pavin g projects with construction scheduled for summer 2013 . Curb ramp and sidewalk construction is complete in Pavement Area 5 . Conversion of the traffic signals acquired through the relinquishment of Highway 227 from the State has been delayed due to staffs focus on other higher priority projects . The biennial Traffic Operations Report is delayed due to other staff priorities, such as the Chevron project and th e Land Use and Circulation Elements Update (LUCE). This year, the report will be incorporated as part of th e background analysis work being conducted by the LUCE update . It is anticipated that the background summar y report will be completed in April 2013 . Independent reporting will resume after LUCE is complete and will likel y include new reporting criteria for complete streets level of service factors . The annual 2011 Traffic Safety Report will be reduced in scope and has been delayed until 4/13 due to other hig h priority projects . The Bicycle Transportation Plan update has been delayed due to extended absences of several key staff an d Council direction to prioritize the development of an oversized vehicle parking ordinance . City staff has met with Regional Transit Authority (RTA) and San Luis Obispo Council of Government s (SLOCOG) staff to identify opportunities to share costs and improve efficiency . M December 2011, as a partia l follow-up to both audits, the SLOCOG Board approved setting aside $15,000 in "State Transit Assistance" fund s toward a joint scheduling project in the Central Area. On February 7, 2012, RTA, SLOCOG and City staff held a kickoff meeting for a SLO Transit Route 2/RTA Route 10 efficiencies study . Through this project, rout e efficiency and timing was reviewed to determine how best to coordinate services between the RTA and SL O E-17 B1-122 • • • • MAJOR CITY GOALS - TRAFFIC CONGESTION RELIE F Transit . The effort required the use of outside resources in order to gain an objective perspective on curren t coordination issues as well as to scope potential opportunities to improve service deployment . RTA was the lea d agency on this joint project ; both agencies used half of the Transportation Development Act (TDA) third quarte r funds ($7,500) towards this effort . During the course of this study, a number of options were developed for consideration . Most options include d changing SLO Route 2 to hourly frequency, adjusting when it pulses from the Downtown Transit Center (DTC ) and extending service to the South Broad Industrial area including the airport. SLO Transit and RTA ultimately determined that none of the scenarios developed were workable in the short ter m for the following reasons : •SLO Route 2 would be unable to easily change its pulse times as it has an important interface with SL O Route 3 at the Downtown Transit Terminal . •RTA will address its on-time issues through rerouting and minimizing stops through San Luis Obispo . City and RTA staff continue to meet on a regular basis to discuss service efficiencies that would benefit riders o f both systems and RTA is currently evaluating establishing service to the airport by creating a route CO expres s schedule along Highway 227 through Price Canyon . • • E-l8 B1-123 OTHER IMPORTANT COUNCIL OBJECTIVES - OPEN SPACE PRESERVATIO N OPEN SPACE PRESERVATIO N Objective . Continue efforts to acquire, preserve, protect, and maintain open space in our greenbelt . Begi n implementation of the master plan for City-owned agricultural lands at Calle Joaquin . Complete and begi n implementation of the updated conservation plan for Irish Hills Natural Reserve . Prepare a Conservation Plan for Reservoir Canyon Natural Reserve . Create a plan for maintenance of Laguna Lake and Park, including potential funding . Action Plan Task Current Revise d t ontintt t~Iien aoe aleguisition,Preservation and Protectio n 1 .Continue participation in planning and acquisition efforts that at a minimum include : (a) th e Chevron Tank Farm property and adjacent open space lands ; (b) City- or Land Conservancy - held conservation easements on lands near Camp San Luis Obispo ; (c) Righetti Hill in th e Orcutt Specific Plan Area ; (d)"Upper Goldtree Vineyard Tract" lots (King an d Filipponi/Twisselman properties) above Johnson Avenue ; and (e) the Filipponi/Denbow an d Mountainbrook Church properties at the end of Calle Joaquin . Ongoing 2 .Support actions to implement the Agricultural Master Plan for the Calle Joaquin Agricultural Reserve . Ongoin g 3 .Complete Update of the Conservation Plan for Irish Hills Natural Reserve, and begi n implementation activities . Ongoin g 4 .Continue implementation of elements of City adopted Conservation Plans for : Johnson Ranch ; South Hills; Stenner Springs ; and the Bob Jones Trail . Ongoing 5 .Continue efforts to improve signage, trail conditions, and environmental restoratio n programs . Ongoing 6 .Continue to participate and oversee City-sponsored or directed mitigation projects, includin g the Los Osos Valley Road interchange, Bob Jones Trail environmental enhancements, an d various private mitigation and enhancement projects throughout the City . Ongoing 7 .Continue leadership role in management of the City's natural waterways through Zone 9 projects, and provide administrative oversight to the Stormwater Management Program . Ongoing 8 .Preparation and completion of a Conservation Plan for Reservoir Canyon Natural Reserve . T'7 ntb Maintepance of Laguna Lake and Pant s T¢elndu g PotentitFiindtn g 1 .Conduct and complete research on public and private grant and loan sources . 11/12 4/13 Ongoin g 2 .Identify interested parties and groups . Begin a series of public workshops to develop a community supported maintenance plan for Laguna Lake and for Laguna Lake Park as it i s affected by the maintenance plan . Develop an email group of participants and provid e electronic information updates to this group . Complete E-19 B1-124 • OTHER IMPORTANT COUNCIL OBJECTIVES - OPEN SPACE PRESERVATIO N Task Current Revised 3 . Complete public workshops for the maintenance plan .Complet e 4 . Draft the maintenance plan and begin circulation .11/12 2/1 3 5 . Presentations of Draft Plan to : Stakeholders, Parks and Recreation Commission, an d Planning Commission for review, comment, and recommendations to the City Council . 12/12 3/1 3 6 . Adoption of Maintenance Plan by Council .1/13 6/13 Status Summary : 80% Complete .The following is a summary of accomplishments and important next steps for thi s goal . Acquisition, Preservation and Protection of Open Space 1.The Goldtree acquisition project was successfully completed in June 2012 . Also, the Righetti property easement s have been completed and recorded . The City's non-profit partner, The Land Conservancy of San Luis Obisp o County, completed the acquisition of a conservation easement valued at $1 .725 million which protects the 53 5 acre Highland Ranch on Los Osos Valley Road in the westerly extent of the City's adopted Greenbelt area . 2.The City was awarded a $125,000 grant from the California Resources Agency's Environmental Enhancemen t and Mitigation Program (EEMP) to conduct restoration activities along Prefumo Creek and to create a wetlan d meadow to capture and filter sediment and nutrients at the Calle Joaquin Agricultural Preserve . The City Counci l approved the grant award, and staff have executed a lease with the Central Coast Agriculture Network (CCAN ) • for long term management and operation of the site . 3.The Irish Hills Conservation Plan was approved in July 2011 . Staff has completed the jeep roa d decommissioning, several trail workdays and trail events since that time, resulting in the opening o f approximately two miles of new trails, including the long-awaited connector trail between The Irish Hills Natura l Reserve and the Johnson Ranch Natural Reserve in early January 2013 (a ribbon-cutting ceremony will b e planned for later this spring). 4.A mitigation basin was installed at Johnson Ranch and construction of the skills area is moving forward a t Stenner Springs . 5.New signage is currently being installed primarily at Irish Hills, and at the Highland Drive and Patricia Stree t trailheads as requested by residents . 6.Storm preparedness projects completed include : Andrews Street stormwater improvements ; Park Street sewer lin e replacement ; silt removal at Hollyhock Lane and Los Osos Valley Road ; and new riparian plantings along th e Bob Jones Trail . 7."Winterization" work was completed and needs for next year are being identified and compiled . Five major sil t removal projects were undertaken this past summer, resulting the removal of roughly 8,000 cubic yards o f sediment from the Prefumo Creek and Los Osos Valley Road, Prefumo Creek at Madonna Road, Marsh Street a t the 101 on-ramp, the Wastewater Reclamation Facility bypass channel, and the San Luis Obispo Creek / Prefum o Creek confluence bypass channel . 8.The Reservoir Canyon Conservation Plan is underway, with a successful public workshop held on January 31 , 2012 at the Ludwick Center . The plan was reviewed by the both the Parks and Recreation Commission and th e Planning Commission, but with the recent addition of the Goldtree acquisition (See item no . 1, above) staff wil l make revisions to include this area into the plan before bringing it forward for final adoption . In the meantime , students in Cal Poly's Landscape Architecture course no . 403, under the direction of Professor Walt Bremer, ar e studying the Reservoir Canyon property this winter quarter and will make design recommendations to implemen t several of the identified Conservation Plan action items . • E-20 B1-12 5 • OTHER IMPORTANT COUNCIL OBJECTIVES - OPEN SPACE PRESERVATIO N Laguna Lake Maintenance Pla n Staff conducted two neighborhood forums for parties interested in Laguna Lake in February and June 2012, an d continue to review and assemble technical data, as well as community input, in its evaluation of alternatives fo r the responsible management of the lake . Staff met in the field with representatives of the Central Coast Regiona l Water Quality Control Board, California Department of Fish and Game, and National Oceanic and Atmospheri c Administration to receive preliminary feedback and input from those regulatory agencies . The draft plan i s expected in March 2013, with the item coming to Council in June 2013 . • • • E-21 B1-126 OTHER IMPORTANT COUNCIL OBJECTIVES - INFRASTRUCTUR E • MAINTENANC E INFRASTRUCTURE MAINTENANC E Objective . Increase infrastructure maintenance and investment . Sustain an effective level of core existing infrastructur e and proactively protect and maintain physical assets (such as the downtown, streets, bikeways, sidewalks, flood protectio n facilities, recreation facilities, City owned historic resources, and the urban forest). Infrastructure Maintenance is a designated Measure Y priority . Action Plan E-22 B1-127 OTHER IMPORTANT COUNCIL OBJECTIVES - INFRASTRUCTUR E MAINTENANC E Task Curren t Complete Year 2-6/13 Revise d 2 . Pavement Maintenance – Year 1 & Year 2 Year I - Complet e Year 2 Complet e 3 . Sidewalk Repair–Year 1 & Year 2 Year I – Complete Year 2 - 6/1 3 1 . Laguna Lift Station 2/1 3 2 . Calle Joaquin Lift Station Replacement 12/1 3 3 . Wastewater Collection System Improvements – Year 1 & Year 2 Year 1 - Complet e Year 2–12/12 Year 2 - Complete 4 . Water Reclamation Facility Major Maintenance – Year 1 & Year 2 Year 1 – Complete Year 2-6/1 3 +3r ~, ]~3'x U]]~t ]t ]`1 'gel J I]3 p '._x sid~s ,,] 1 . Water Distribution System Improvements – Year 1 & Year 2 Year 1 – Complet e ._..'~hw_mel ..~..~._.»e Year 2-6/1 3 wok ._ti .«~.]s.:_ 1 . Operating program regular maintenance through : Building, Flood Control, Golf Course, Landscape & Parks Maintenance, Natura l Resources Protection, Parking Operations, Ranger Program, Reservoir Operations, Street s & Sidewalk, Swim Center, Traffic Signals & Lighting, Tree, Vehicle & Equipment , Wastewater Collection, Water Distribution, Water Reclamation Facility, Water Treatment Ongoing Status Summary : 60% Complete .The following is a summary of accomplishments and important next steps for thi s goal . The Laguna Lift Station Replacement project is under construction . The Calle Joaquin Lift Station Replacement project i s 50% complete with design . A Request for Proposals (RFP) for design services was approved by Council in August 2011 , and a consultant is now under contract for both lift station projects . Construction of Calle Joaquin Lift Station has bee n rescheduled to summer 2013 because of the additional time needed for land acquisition and some unanticipated costs . All Water Distribution System Improvements projects identified for 2011 and 2012 have been completed . Completion o f the Water Reuse Automation Improvements is anticipated in June 2013 . E-23 B1-128 • OTHER IMPORTANT COUNCIL OBJECTIVES - INFRASTRUCTUR E MAINTENANC E Several Wastewater Collection System Improvements projects were completed in 2012 (inversion liners in variou s locations). Other improvements to the Wastewater Collection System continue ; design and construction are anticipated t o be complete by June 2013 (construction of the Laguna Lift Station replacement and the San Luis Drive Sipho n replacement, and the design of the replacement of the Calle Joaquin Siphon, Lift Station and Force Main). Maintenance projects are underway and have been completed at the Water Reclamation Facility including replacin g HVAC units, roof repairs, upgrade of telemetry equipment, and replacement of aged equipment (bubble diffusers, bow l assemblies). Playground equipment replacement work is completed at Meadow Park . Design work is on-going for Santa Rosa , Sinsheimer, Johnson, and Emerson parks . The Meadow Park Restroom Roof replacement is complete . Warden Bridge surface replacement is headed to construction in February 2013 . This project will involve the removal of a large tree at th e entrance to Mission Plaza . Street paving work for 2011 and 2012 is complete . Design is underway for the 2013 Microsurfacing and Paving project s with construction scheduled in summer 2013 . Sidewalk work is complete in Area 5 . Work is underway in Area 6 , scheduled for resurfacing work in summer of 2013 . Chorro Street paving work is complete . Storm Drain Replacements Year 1 is finished with the completion of the storm drain work on Highland Drive . Storm Drain Replacements Year 2 is complete . Downtown parking lot resurfacing design work is 60% complete . • Street Maintenance crews completed preparation work for the Summer 2012 microsurfacing work, and have starte d sidewalk repairs, and pavement preparation for the Summer 2013 street contract work . • E-24 B1-12 9 • OTHER IMPORTANT COUNCIL OBJECTIVES - PLANNIN G PLANNING : UPDATE LAND USE AND CIRCULATION ELEMENT S Objective . Within the scope of the Strategic Growth Council (SGC) Grant, undertake an update of the Land Use an d Circulation Elements ; including "Healthy Cities," complete streets, and pedestrian circulation policies . Action Plan 1 . Develop request for proposals (RFP) for consultant services Complete 2 . Program initiation—Planning Commission and Council meetings Complete 3 . Task Force formation and public participation plan Complete 4 . Background report — current program evaluation, demographics, regulatory framework , interviews, and outreach 11/12 2/1 3 5 . EIR — environmental setting/existing conditions report 11/12 2/1 3 6 . Policy updates – community workshops 2/13 5/1 3 7 . New issues, including neighborhood identification, healthy cities, greenhouse ga s reduction, pedestrian circulation, and complete streets policies and programs— communit y workshops 3/43 5/13 8 . Policy document – draft set of goals, policies and implementation measures 8/1 3 9 . Land use plan recommendations – community workshops 643 8/1 3 10 . Circulation plan recommendations — community workshops 8/1 3 11 . EIR — project description and impact analysis including a fiscal analysis for the update d elements underway . Assemble all current downtown design guidelines and standards . 12/13 Status Summary :30% Complete . The following is a summary of accomplishments and important next steps for thi s goal . A consultant team was selected to help lead this grant-funded project and a contract was finalized in January 2012 . Council selected 17 residents to serve on a task force to provide input to the process and their first meeting was held o n April 18, 2012 . The first public workshop was on May 16, 2012, and a survey modeled after the 1988 survey wa s distributed to all addresses in the City through April and May 2012 . Collection of data and evaluation of policy status fo r the elements is underway, and the web page www .slo2035 .com has been launched to provide public access to all material s and dates associated with the effort . A neighborhood definition interactive program provided a starting point fo r neighborhood discussion and was the subject of the first community workshop . The topic of neighborhoods will b e discussed in the background report . The background report chapters are being researched, assembled and then reviewe d by a City staff team and the full report is anticipated to be publicly available in February 2013 . Three workshops, a series of six open houses, and seven task force meetings have been hosted where topics such a s neighborhoods, opportunities and challenges, "complete streets," survey information, and the update process have bee n discussed. The task force members have been active facilitators in public outreach events . A community visionin g workshop called the "Future Fair" was held in December 2012 and was well-attended . An interactive on-line tool called • E-25 B1-130 • • OTHER IMPORTANT COUNCIL OBJECTIVES - PLANNIN G "MindMixer" has been launched to gamer additional input on development potential for various opportunity sites as wel l as guiding principles that will help inform development of alternatives for consideration . Staff will be returning to the Council in March 2013 with a briefing update and to report on the results of th e neighborhood mapping task . There were a wide range of opinions about neighborhood boundaries provided to staff an d resolving these differences proved more challenging than originally anticipated . Important next steps include the Task Force's adoption of guiding principles and another community workshop in Ma y 2013 . This workshop will be the first of many in which the community and task force have the opportunity to provid e input on changes to the General Plan based on neighborhood and community input . On March 4, 2013, the City of San Luis Obispo in coordination with the City of Goleta will bring Peter Kagayama, autho r of the internationally renowned book for THE LOVE of CITES,to San Luis Obispo to share his insights on community - building . Peter will work with San Luis Obispo's community co-creators to improve and maximize the mutual love affai r between people and their place to create more engaged citizens . Peter believes that a small number of people who are "i n love" with their city can have major impacts. The City's success can be charted back to a list of visionaries who were "i n love" with San Luis Obispo. His visit is timely set to capitalize and continue the creative momentum associated with th e LUCE update, particularly as it moves into the next phase of focused policy revisions and recommendations . Work extending beyond 2011-2013 is reflected in the chart below . Action Plan 2013-201 5 Task Original Revise d 12 . EIR–Public Review Draft Release 1/1 4 13 . Draft EIR and General Plan Update 1/1 4 14 . Public Workshops and Hearings 2/1 4 15 . DEIR — Response to comments 8/1 4 16 . Final EIR 9/1 4 17 . Final General Plan 11/14 • E-26 B1-13 1 OTHER IMPORTANT COUNCIL OBJECTIVES - AFFORDABLE HOUSING / HOMELESS SERVICES • AFFORDABLE HOUSING/HOMELESS SERVICE S Objective . Continue to facilitate provision of affordable as well as market-rate housing and provide leadership i n implementing the County's 10-Year Plan to End Chronic Homelessness . Action Pla n Task Current Revised 1 . Seek grants to facilitate affordable housing projects .Ongoin g 2 . Work with developers to include affordable housing units in projects and to complet e housing projects in process . Ongoin g 3 . Continue to implement Housing Element programs .Ongoin g 4 . Look for new opportunities to use Affordable Housing Fund and grant monies to leverag e other funds for affordable housing projects . Ongoin g 5 . Work with service providers and the Homeless Services Oversight Council (HSOC ) director to understand needs of homeless population . Ongoing 6 . Continue HSOC participation to further the implementation of the 10-Year Plan .Ongoing Status Summary :80%Complete . The following is a summary of accomplishments and important next steps for this • goal . Affordable Housin g On December 5, 2012, staff presented the 2013 Community Development Block Grant (CDBG) fundin g recommendations to the Human Relations Commission (HRC) for review and consideration . The HRC unanimousl y supported staffs funding recommendations, which were forwarded to the County for inclusion in the 2013 Draft Actio n Plan . On February 5, 2013, Council will hold a public hearing to consider the HRC's recommendation and adopt fundin g recommendations for the 2013 CDBG Program Year . Council's action will be submitted to the County Board o f Supervisors for inclusion in the final 2013 CDBG Action Plan for the San Luis Obispo Urban County . The City received a total of 10 CDBG funding applications requesting $680,798 . Estimated funding for the 2013 Program Year is $506,588 . Staff completed the sub-recipient agreement between the City and County for 2012 CDBG funds . The Department o f Housing and Urban Development (HUD) requires agencies that administer CDBG funds to enter into agreements, whic h outline the requirements of the CDBG program . The City and County enter into a sub-recipient agreement each year —a required step before any CDBG funds can be obligated . Staff completed several National Environmental Policy Act (NEPA) environmental review clearances for the City's 201 2 CDBG Program Year projects, including ADA street improvements, Tri-Counties Housing Corporation and Habitat fo r Humanity . On March 20, 2012, Council authorized staff to apply to the State Department of Housing and Community Developmen t (HCD) for Housing Related Park (HRP) grant funds . In July, HCD announced that the City was awarded the HRP grant in the amount of $139,750 . The grant amount is based on the number of new low income housing starts in 2011 . The City E-27 B1-132 • OTHER IMPORTANT COUNCIL OBJECTIVES -AFFORDABLE HOUSING / HOMELESS SERVICE S had two affordable housing projects that qualified during the designated program year, including Villages at Broad Stree t (2280 Emily Street) & Habitat for Humanity (1320 & 1324 Phillips Lane) with a total of 43 extremely-low, very-low and low income affordable units . The HRP grant program is designed to encourge cities and counties to develop ne w residential housing by rewarding those jurisdictions that approve housing for low income households . Funds from thi s grant program can be used for eligible parks and recreation projects that benefit the community . Council authorized use o f the grant funds for the Santa Rosa Park playground replacement project, which will directly offset General Fun d expenditures in the 2011-2013 Financial Plan . The project includes the removal of old play equipment and sand surfacin g and installing new equiptment, as well as providing an improved drainage system and compliant safety surfacing in thi s heavily used playground . The preliminary estimate of construction costs is approximately $245,000 . The project i s currently in design phase with construction scheduled to being in spring 2013 and completion expected in summer 2013 . Transitions Mental Health Association (TMHA) has approached the County to purchase the Sunny Acres building an d surrounding property for a residential care facility use . The project would include a total of 35 single-room occupanc y dwellings for low income residents with mental health illnesses . Thirteen of the units would be in the Sunny Acre s building located in the Open Space land use designation on approximately 0 .6 acres . The remaining 22 units would b e located in three separate buildings constructed below the Sunny Acres building in the Low Density Residential land us e designation on approximately 0 .72 acres . The County's purchase agreement will require THMA to work with the City t o preserve the building's exterior facade and ensure retention of the historic resource . On July 11, 2012, the Plannin g Commission, on a 7-0 vote, adopted a resolution that found the County's proposal in conformance with the General Plan . Staff is working the TMHA to explore various funding opportunities for pre-development costs of the facility . Staff met with numerous developers and reviewed development projects for compliance with the City's Inclusionar y Housing Program . The City received its first development proposal in the Orcutt Area Specific Plan . The developmen t includes 146 dwelling units with a mix of affordability and housing types . The applicant is proposing approximately 25 % of the units as affordable to very-low, low, and moderate income households . This level of dedication far exceeds th e • project's Inclusionary Housing requirement . On October 2, 2012, Council approved an Affordable Housing Fund award for the Housing Trust Fund (HTF) in th e amount of $30,000 . The HTF provides three key services that benefit affordable housing in the City of San Luis Obispo : 1) financing, 2) technical assistance and 3) advocacy . The HTF provides funding for affordable housing projects , including property acquisition, construction and refmancing . HTF staff also serve as a resource to City staff working wit h developers on affordable housing projects . The HTF was instrumental in facilitating the property acquisition componen t of the Village at Broad Street project, a 42-unit affordable housing project developed by ROEM Corporation, with a $1 .3 million loan . The HTF has also lent $350,000 to the Housing Authority of San Luis Obispo (HASLO) to refinance th e Marvin Gardens Apartments on Laurel Lane, helping to preserve that 24-unit affordable project . In August 2011, the HTF loaned $360,000 to the Tri-Counties Community Housing Corporation to acquire three extremely-low income affordable housing units occupied by individuals with developmental disabilities on Hathway . In June 2012, the HTF committed a $400,000 loan to the South Street Family Apartments, a 43-unit affordable rental apartment project proposed by ROE M Development Corporation . This funding commitment was designed specifically to help the project be more competitiv e for tax credits — a critical funding piece of this project's feasibility . The Affordable Housing Fund award improves th e City's ability to facilitate affordable housing and provides technical assistance to City staff and developers of affordable housing in the City . Additionally, the award leverages significant additional funding from other sources . The 1550 Madonna Road property (120-unit affordable housing project) received 4% tax credits and tax exempt bonds t o acquire and rehabilitate the property and units . Staff completed a NEPA environmental clearance for the project to allo w the Housing Authority to allocate 90 project based vouchers to the project from HUD's Housing Choice Vouche r Program . The project has received both planning and building permit approvals and renovations are currently underwa y with completion expected in spring 2013 . • E-28 B1-13 3 • OTHER IMPORTANT COUNCIL OBJECTIVES - AFFORDABLE HOUSING / HOMELESS SERVICE S Staff completed several property reconveyances and subordination agreements for the City's Inclusionary Housing program . Since July 2012, staff expanded the Inclusionary Housing stock by securing 18 affordable rental housing unit s (16 low and 2 very-low income) through long-term affordability agreements . In an effort to assist the Housing Authority of San Luis Obispo (HASLO), property managers, and citizens pre-screen fo r income and asset eligibility, staff published affordable housing rental guidelines, which are posted on the City's Housin g website and available at the Community Development Department front counter . Work continued on updating Chapter 17 .90 (Affordable Housing Incentives) of the Zoning Regulations to be consisten t with State density bonus law . A draft ordinance has been prepared and is being circulated internally for review an d comment . Staff expects to have the draft ordinance complete in winter with advisory body review in spring 2013 . The Community Development Department is preparing for the next Regional Housing Needs Allocation (RHNA), whic h will require an update to the City's Housing Element . The RHNA produced by the State Department of Housing an d Community Development (HCD) identifies the projected housing needs in the region as part of the periodic updating o f local housing elements of the General Plan . The 2013 RHNA assignment for the County is 4,090 housing units . The San Luis Obispo Council of Governments (SLOCOG) collaborates with a Methodology Committee made up of staff from al l seven cities and the county to recommend a formula by which to assign housing units to each jurisdiction . On October 30 , 2012, Community Development Department staff represented the City on the RHNA Methodology Committee . At this meeting, there was unanimous support and recommendation from all Committee members to use the formula applied i n the prior planning period as the basis for assigning RHNA allocations . A public hearing is scheduled before the SLOCO G Board on February 6, 2013 for formal review and adoption . If the Committee's recommendation is approved by th e Board, the City's RHNA allocation will be 1,118 units for the upcoming planning period January 1, 2014 to June 30 , 2019 . The City is not required to construct housing, but to demonstrate that it can accommodate this requirement throug h a variety of programs as well as having appropriate land use and zoning capacity . The 1,118 unit allocation is substantiall y lower than the previous planning period requirement of 1,589, and the City currently has the land use and zoning capacit y to accommodate this recommended allocation without the need to rezone property . This is very good news and it i s anticipated that it will provide for a streamlined review process with HCD when the City updates its Housing Element fo r the upcoming planning period . Staff recently completed implementation of an Affordable Housing Monitoring Program . Staff monitored the City's 24 0 Inclusionary Housing units for compliance with the City's affordability agreements and Affordable Housing Standards . Staff is pleased to report that after extensive research, surveys, outreach, and on-site meetings with property managers, al l of the units are now in full compliance with the City's Affordable Housing Program . On November 9, 2012, Habitat for Humanity of San Luis Obispo County (HFH), City officials and a number o f community partners attended a groundbreaking ceremony for HFH's affordable housing development located at 321 2 Rockview Place . The site is approximately 12,000 square feet in area and the project includes the development of thre e single-family homes . Each home will occupy its own lot and will include approximately 1,000 square feet of living are a with three-bedrooms and 1½ baths . These homes are deed restricted for purchase by very-low income families under the City's long-term affordability program. The City contributed a Community Development Block Grant of $241,217 and a n Affordable Housing Fund grant of $38,783 for property acquisition and site clearance and remediation . The Community Development Department is currently reviewing building permit plans for the homes and construction is expected to begi n in February 2013 . In December 2012, HASLO submitted a propposal to the City to modify the affordability requirement in their Moyla n Terrace project from long-term to equity share . This project includes the development of 80 residential townhome unit s and a building with a community room and one rental apartment . Of the 81 units, 49 are currently deed-restricted unde r the City's long-term affordability program with the remainder to be sold as "workforce housing" (between 120% an d 160% of the County median income). The City contributed an Affordable Housing Fund grant of $709,900 for propert y acquisition and waived development review and citywide impact fees for the affordable units that exceed the project's • E-29 B1-134 • • OTHER IMPORTANT COUNCIL OBJECTIVES - AFFORDABLE HOUSING / HOMELESS SERVICE S inclusionary requirement, consistent with City policy . In addition, staff negotiated with the County to provide CalHom e first-time homebuyer assistance for up to six low income units ($300,000) in the project . The project is being developed i n seven phases with the sale of completed units to occur prior to start of the next development phase . Currently, phase 1 o f the project is nearing completion and HASLO is seeking approvals to sell the units from the California Department o f Real Estate . One obstacle HASLO has encountered is finding lenders that will finance the units . The original affordabilit y restrictions were too stringent and prevented banks from lending on the project . Staff is working closely with HASLO t o develop equity share documents . This has been a complicated process since the City does not have establishe d affordability templates for the equity share program and detailed review and approval by the City Attorney is required a s the affordability provisions are integrated into the project's approval . Homeless Service s On March 20, 2012, the City Council temporarily suspended enforcement of the requirements of Municipal Code Chapte r 17 .16 .015 (Recreational vehicle as dwelling unit) and authorized Community Action Partnership of San Luis Obisp o County, Inc . (CAPSLO) to operate a safe shelter pilot program for up to five vehicles for a portion of property located a t 43 Prado Road . Council also directed staff to return within six months of program implementation to report on the succes s of the pilot program and consider changes to the Municipal Code to establish a permanent safe shelter ordinance . On October 2, 2012, Council directed staff to develop amendments to Title 17 of the Municipal Code to allow a permanen t safe parking program at other compatible locations in the City . To further this effort, staff completed a project plan fo r development of the Safe Parking Ordinance . This plan outlines the ordinance purpose, objectives, scope, tasks an d schedule and was presented to DOC in November . Staff also assisted in the preparation of a public engagement plan . Thi s plan identifies project goals, key audiences and messages, and strategies and tactics to be used to engage the community on where and how safe shelter facilities should be located and managed . The first workshop was conducted on November 27, 2012 at the Meadow Park Recreation Building and was attended by approximately 50 members of the public , including all five Council members . The second workshop was held on November 28, 2012 at the Communit y • Development Department and was attended by faith based organizations and social service providers . Staff received valuable input from a wide ranging cross section of the community at both workshops that will be used to draft th e ordinance. In addition, a Safe Parking Program survey on the City's website was completed by more than 350 people . This survey will also be used to assist staff in drafting the ordinance . Staff has tentatively scheduled several mor e presentations before various stakeholder groups in January and February 2013, including the Downtown Association , Chamber of Commerce, Residents for Quality Neighborhoods (RQN) and homeless advocate groups . Staff expects to have a draft ordinance complete by the end of February 2013 with advisory body meetings scheduled in the spring . Staff actively participate on the Homeless Services Working Group . This group is made up of representatives from th e County, City, local social service providers and business representatives . The group meets on a regular basis to discuss homeless issues and opportunities to better coordinate the approach to fill gaps in homeless services . Staff also meet s regularly with CAPSLO staff to discuss the design, layout and programs proposed for the new Homeless Services Center . Staff is actively involved with the 2013 Homeless Enumeration Report . The purpose of the report is to understand th e extent and nature of homelessness, which allows the community to plan for needed programs and services, and to provid e data for required reporting to HUD . Staff is working with CAPSLO and a consultant team to make appropriate changes t o some of the questions in the report to get relevant data on the City's homeless population and tailor services and program s to address current needs . • E-30 B1-13 5 • ADDRESS AS RESOURCES PERMIT • The following provides brief status reports on "Addres s as Resources Permit" objectives for 2011-13 . Climate Protectio n Objective . Implement greenhouse gas reduction and Climate Action Plan. Conduct energy audits of all Cit y facilities, increase energy conservation, invest i n infrastructure which will save energy and funds in th e future . Status Summary : 75% Complete . The Utilities Department is working on an energ y efficiency project at the Water Reclamation Facilit y (WRF) that partners with Pacific Gas and Electri c (PG&E) to reduce energy consumption, operating cost s and greenhouse emissions . In January 2012, Council approved agreements with PG&E to complete a stud y and a portion of the design for energy efficienc y measures at the WRF . Staff will return to Council in early 2013 with a recommendation for this project base d on the completed study and preliminary design . In addition, the Council approved a Climate Action Pla n in July 2012 after substantial outreach and Plannin g Commission review and revision . Parks and Recreatio n Objective . Increase utilization of Damon-Garcia Sport s Fields . Status Summary : 85% Complete . To address this Council objective, staff first established a project team in spring 2011 . The project team consist s of staff from Parks and Recreation and Public Work s departments, members of the Parks and Recreatio n Commission, and representatives from both Youth an d Adult Turf Sports . The project team has met bi-monthl y since May of 2011 . The project team's first step was t o create a project plan with four main objectives : determine current field usage (including maintenance); determine ways to increase play ; identify short term strategies ; and identify longer term strategies . Based on permit records, the use of the Damon Garcia Sport s Fields during calendar year 2010 was analyzed . For the calendar year 2010, staff found that 1,395 hours of play by youth was scheduled, 419 .5 hours by adults, 5,48 3 hours were needed for maintenance (including closure s for restoration), and 31 days of play were rained out . 47,388 people were estimated to have been on the field s as spectators or participants . Following the analysis of field usage, the project tea m determined that a stand of Bermuda grass should be planted on a portion of a field to determine definitively i f it could (a) grow successfully in our cooler climate an d (b) determine if it was more durable and therefore woul d result in less restoration time for the facilities longe r term . The grass was planted during the summer 201 1 renovation . Evaluation of its success is ongoing ; however, to date it is neither as robust nor as prolific a s was hoped . Also following the analysis of field usage , additional hours of play were scheduled for 2011-12 . Ultimate Frisbee (for adults) was added as was Lacross e (for adults). Organized drop-in play was tested in the fal l of 2011, occurring on Tuesdays from 12-2 p .m. With positive feedback from participants and staff, Thursda y 12-2 p.m . drop-in play was also added to the schedule . Approximately 30 players are participating in thi s opportunity. Beginning in November 2011, a Thursda y night practice for club soccer teams was added a s another test for expanded play. These additional hours o f play were based on a survey of over 125 users and non - users of the facility who staff sought information fro m about their use to better maximize facility usage . To increase awareness of field uses and to better serv e the public, a Google calendar was created for the field s so that users can have ready access to the scheduled pla y at the facility. Staff continues to : monitor fiel d conditions ; survey (every other month) users about fiel d conditions ; and expand use of other facilities in th e community for turf sports . As a result of the additiona l uses described above for 2011-12, permitted uses an d additional drop-in and practice uses increased by 29 8 hours of permitted play (50 hours for youth and 24 8 hours for adults). This totaled a 16% increase from th e prior year's previously scheduled play . In mid-May 2012, the Damon Garcia Sports Fields was closed for its annual renovation . Prior to that closure,a fmal survey of field conditions was taken by users t o assist in the ongoing maintenance of the facility . Play for the 2012-13 season is in earnest with the fal l AYSO season completed . Play levels include increase s E-31 B1-136 • • • • • ADDRESS AS RESOURCES PERMI T in youth practices on Tuesday and Thursday nights and work has begun in the form of data collection an d work with adult soccer for night-play . Staff and the ad interviews with local historians . hoc committee members continue to work to identif y opportunities for additional turf in the City and increase d play at Damon Garcia . As always, the ideal balanc e between maintenance and use at Damon Garcia Sport s Fields continues be sought . Historic Preservatio n Objective. Continue to promote historic resourc e preservation opportunities and update Historic Resourc e Inventory . Status Summary : 60% Complete . The Cultural Heritage Committee (CHC) conducte d historic survey work of a 10-block area adjacent to th e Old Town and Railroad Historic Districts . This survey i s the first of several that will bring the Citywide histori c resources inventory up to date . The CHC organized a subcommittee consisting of CH C members and Community Development staff to assis t with the survey work . Detailed workbooks with Stat e Historic Survey forms, guidelines, architectural detail s and training materials were provided to the sub - committee members to assist with the work effort . The CHC hearings in October through December 2011 wer e utilized to review survey results and identify potentia l historic resources Seventy (70) properties within th e survey area are currently being examined for potentia l listing . The CHC reviewed final survey results an d forwarded recommendations for historic listings to the City Council in December 2012 . In December 2011, the City Council adopted a resolution to allow the City to move forward with a n application to become a Certified Local Governmen t (CLG). The CLG program facilitates a partnershi p between the City and the State Office of Histori c Preservation (OHP), allowing for technical assistance , grant funding and collaboration . The application wa s accepted by OHP and approved in May 2012 . Thi s enabled the City to apply for grant funding during the 2012 grant cycle to develop a historic context for th e City including a mid-century theme . The City wa s awarded a $22,500 grant for this purpose and solicite d bids . Three proposals were received. After screening an d evaluation, the City hired a consultant and preliminary E-32 B1-137 CARRYOVER GOALS AND OBJECTIVES Council Infrastructure Fund for $200,000 . The City was • not awarded either grant . Staff continue efforts to rais e funds for the project through a variety of fundraiser s including the ongoing Buy a Brick Build a Dream " campaign for the park. Airport Area Annexatio n Objective . Annex the Airport Area . Status Summary : 100% Complete for Phase IA . Th e Local Agency Formation Commission (LAFCO ) completed the annexation process for 626 acre s associated with Phase IA of the annexation area . The map and certificate of annexation was delivered to th e State Board of Equalization and the land was officiall y added to the City boundary on July 25, 2008 . Discussion with property owners in the Phase 1B are a was conducted in early 2009 . The proposed developmen t of the Chevron property will result in an amendment t o the Airport Area Specific Plan (AASP). That project i s in the Environmental Impact Report (EIR) preparatio n stage and City and County staff are collaborating in th e review of the project . The administrative draft of the EIR, along with the scope of work for a financing plan , is underway . Annexation of the Chevron property wil l provide another key piece of the Airport Are a annexation . Discussions with LAFCO staff hav e indicated that LAFCO would prefer the City pursu e annexation of the entire remaining area including th e San Luis Obispo County Regional Airport, but woul d support phased annexations as needed . This issue i s significant because several areas of the AASP are no t contiguous to existing City boundaries and the only wa y to bring those properties into the City will be to addres s the airport property itself. Including the airport ma y significantly alter the timing anticipated for Phase 1B . Broad Street Corridor Pla n Objective. Adopt and implement a plan for South Broa d Street corridor planning and improvements . Status Summary : 90% Complete .The plan has been significantly revised after further evaluation reveale d that overall densities associated with reducin g development to address traffic impacts, would result i n less development than currently allowed . Utilities staff worked with Wallace Group to evaluate waste collection • E-33 B1-13 8 The following summarizes the status of "carryover" Other Important Council Objectives from the 2009-1 1 and 2007-09 Financial Plans . In several cases , "carryover tasks" have been incorporated into the Majo r City Goals (or "Other Important Council Objectives") for 2011-13, and as such, they are not repeated in thi s section . OTHER IMPORTANT COUNCIL OBJECTIVE S Creek and Flood Protectio n Objective . Advance Mid-Higuera flood protectio n improvements by seeking Zone 9 funding to complet e design, obtain approvals and make progress towar d construction as resources will allow . Status Summary :25% Complete . As recommende d by the Zone 9 committee, the Board of Supervisor s approved additional funding for preliminary design wor k to accompany the already completed technical studie s necessary for the environmental document . The preliminary design work for the Mid-Higuera bypas s flood control project, sponsored by Zone 9, is underway . The preliminary design has been presented to Zone 9 and at that time Zone 9 requested an increased projec t scope . City staff is working with County staff to develo p a revised project scope and additional funding t o complete the preliminary design . If additional funding i s provided through Zone 9, the anticipated completio n date for the preliminary design work is September 2013 . Staff will continue to move this project forward a s resources permit . Skatepark Objective.Develop plans and specifications and see k funding to construct a skate park . Status Summary : 90% Complete . The skate park ha s received all of its discretionary approvals by Cit y advisory bodies . The project is now in the final stage s and 90% construction ready plans are presently unde r review by City staff. In September 2011, staff submitted grant applications fo r Proposition 84 funding (2008 Statewide Par k Development and Community Revitalization Program ) in the amount of $1 .27 million and to the Stewardship • CARRYOVER GOALS AND OBJECTIVE S system capacity to ensure orderly development coul d occur . Staff revised the draft plan to achieve the projec t goal of mixed use and infill development . An Airpor t Land Use Commission sub-committee reviewed the draf t plan with the project planner to assist with Airport density compliance determination . The inn]] densitie s envisioned appear to trigger significant traffic impacts a t various intersections . Evaluation of project impacts wil l occur with the Environmental Impact Report (EIR ) prepared for the General Plan update . Staff reviewed the revised draft with the Planning Commission i n November 2012 and the Commission endorsed the pla n with modifications . Staff is currently making thes e modifications to the plan and anticipates bringing th e Planning Commission draft to Council in March 201 3 for conceptual review . • • E-34 B1-139 STATUS OF MAJOR CIP PROJECTS 2012-13 : Second Updat e As of February 1, 201 3 E-35 B1-14 0 Percent Complet e 0% 10% 20%30%40%50% 60% 70% 80% 90%100% 1* UNDER CONSTRUCTIO N Tank Farm Widening - Broa d Stormdrain Replacements (2012-13 ) Street Reconstruction & Resurfacing (2012-13 ) Laguna Lift Station Replacemen t City Hall Step Replacemen t Warden Bridge Repair - Mission Plaz a Railroad Safety Trail Construction - Hathway t o Taft Water Reuse Automation Improvement s Marsh Street Garage Paintin g Santa Rosa Skate Par k Playground Equipment Replacement - Johnson , Santa Rosa, Emerson Park s Gateway Monument - Santa Rosa & Highlan d Downtown Directional Signs Installatio n Calla Joaquin Lift Station & Forcemai n Replacement Bob Jones Bridge Construction - LOVR Water Reclamation Facility Energy Efficienc y Projects SI UNDER STUDY Website Upgrade • • • gQ 'vua3~?g .:nurp .~ue`.uacol rvdaA a~apu~^uowp~tfc±shoo}s(j~a 'aaigQ4 ,G#uIa)U S +iie a~,r}r}yaiey5-uo '~nqu v5uow tojartfiealj pasuaa~~ar'p odsiec aini u2g.4o di~~tL Page intentionally left blank . • RECEIVE D FEB 16 201 3 • -= CITY CK Icouncil mcmo~2anOuit LE R -- DATE : February 15, 201 3 TO : Mayor & Council Member s VIA : Katie Lichtig, City Manage r FROM : Wayne Padilla, Interim Finance Directo r SUBJECT : 2"d Supplemental Schedule for the Agenda item on the mid-year financia l update Just after the Mid-Year Budget Update document went to press, I discovered a needed correctio n for the Transit Fund's Change in Financial Position Worksheet which can be found at page B-45 . The correction affects the working capital that is reported at the end of 2011-12 which is reporte d as $6,183,700 . The correct amount is $1,079,973 . The incorrect amount was derived from th e unintentional pairing of the Parking Fund's current assets and the Transit Fund's cur rent liabilities when the original document was being prepared . I apologize for any inconvenience this may have caused . Please feel free to contact me with any questions you may have by calling me at 781-7125 or b y e-mail at wpadilla@slocity .org. • AGENDACORRESPONDENC E Date 2/iq/13Item#jil • TRANSIT FUN D Revenues Investment and Property Revenues Subventions and Grants TDA Revenue s Other Grant s FTA Grant s Service Charge s Other Revenues Total Revenues 24,150 5,700 5,70 0 1,177,462 1,416,900 1,618,738 201,83 8 620,630 539,749 539,74 9 1,419,675 1,274,600 1,757,850 483,25 0 626,458 637,700 618,600 (19,100) 35,949 5,000 5,000 3,904,324 3,339,900 4,545,637 1,205,73 7 • Expenditures Operating Programs Transportation 2,616,974 2,855,700 2,989,296 (133,596 ) General Government 476,500 416,900 416,900 Total Operating Programs 3,093,474 3,272,600 3,406,196 (133,596 ) Capital Improvement Plan Projects 826,335 1,002,807 (1,002,807 ) Total Expenditures 3,919,809 3,272,600 4,409,003 (1,136,403 ) Other Sources (Uses ) Expenditure Savings Other Source s Potential MOA Adjustments Total Other Sources (Uses ) Revenues and Other Sources Over (Under ) Expenditures and Other Uses (89,373) 67,300 136,634 (69,334) (73,888) (73,888) Working Capital, Beginning of Year Working Capital, End of Year 1,079,973 1,095,200 990,600 (104,600) $990,600 $1,162,500 $1,127,234 ($35,266) • * See page B-48 for explanation . B-45 COUNCIL MEETING : o2// 3 ITEM NO .: \eg/ ~~'.rcouncil memonanOu m DATE( February 19, 201 3 TO : Mayor and City Counci l VIA : Katie Lichtig, City Manager FROM : Wayne Padilla, Interim Director of Finance and IT SUBJECT : Encumbrances and Carryover Amounts for 2012-1 3 In response to a request from a Council Member, please see the attached list of encumbrance s and carryover amounts for the 2012-13 fiscal year . • • •City of San Luis Obispo Listing of General Fund Encumbran d Carry-Over Amounts Brought Forward to 2012-13 • Name : Toste Constructio n Economic Vitality Corp . Lisa Wise Description : Encumbered Amount : Carry-Ove r Amount : Combined Total :Department : Sign installation $1,980 .00 $37,500 .00 $39,480 .00 Administratio n Econ . Dev. Regional Efforts $2,500 .00 Econ . Dev . Strategic Plan $4,700 .00 Total for Econ.Dew.$7,200 .00 $14,100 .00 $21,300 .00 Economic Development ..SI ~IYIi'; .trS~#IIII,~: is3I4 ~ ,S~f :r',ka'.eM :. $0 .00 $237 .00 Natural Resource Protectio nEnvironmental Or . Of SL O Verdin Marketin g Richards Watson Gersho niF!OF'" Gill+~ri "~iTgji iwF KCBX Y EE""~: I Pii Sungard Public Secto r Sungard Public Secto r Muni Services, LLC Don Mayno r Bartel Assoc ., LLC Mahoney & Assoc . Consulting Maximus, Inc . Glenn Burdette, Phillips &Bryso n Software Solution s CIO Solutions, LP VPN Dynamic s CITIG, Inc . Quintron Systems, Inc . Quickstart Hewlitt Packar d Gov Connection, Inc . Motorola,lnc . Reese Water & Land Surveyin g Andrea Weiss Educational Program s Events/Promotion Svcs . lilt r''k Legal services`ffl {illllv .il Cable Cast Operation s Software upgrad e Software Upgrade s UUT Softwar e UUT Compliance Consultin g GASB 45 Actuarial Stud y FTA cost allocation pla n Mandated Cost Claim s Audit Services Financial statement templat e I .T. consultin g Firewall/VPN trainin g Data recovery pla n CAT 6 cabling syste m Network Admin Trainin g Computer Equipmen t Computer Equipmen t Replacement Radio s Spot Elevations resurve y Total for Finance <. Executive Coach ill $237 .00 $520 .00 $1,040.0 0 $2,475 .00 $2,500 .0 0 $2,000 .00 $1,100.00 $5,586.00 $2,300.00 $7,100.00 $6,495 .0 0 $10,782 .0 0 $6,865 .0 0 $9,622 .0 0 $4,990.0 0 $87,739.0 0 $11,340.0 0 $11,507 .0 0 $6,100.0 0 $180,061 .0 0 rtPl`"'"' $6,263 .0 0 ''oll $165,670.00 $345,731 .00 F,li1':IVf~ll $21,500.00 $27,763 .00 Human Resources Community Promotion 'Sp+{I ''MliFIt Cit y City Attorney 731Sir ::IZi ''t4`'iii61`n City Cler k $42,000 .00 $68,745 .00 $55,000 .00 ,., $75,130 .00llli~ $0 .00 +t,iPti i hgi; $2,997 .00 $20,130.00 $2,997.00 C :\Users\mcodron\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content .Outlook\3A3NTMIA\list of encumb-carryover amts F Y City of San Luis Obispo Listing of General Fund Encumbrarld Carry-Over Amounts Brought Forward to 2012-1 3 Name :Description : Encum re d Amount : Carry-Ove r Amount : Combine d Total : Johnson Aviation Airport Land Use Plan $18,200 .0 0 Matrix Design Group, Inc .LUCE update $1,042,794 .0 0 Poor Richard Printing Flyers $6,896 .0 0 Total for Community Dev ..#~iy ltt !lur =$1,067,890 .00 $114,470 .00 $1,182,360 .00 Padre Associates Current Year Soil Assessment $691 .0 0 Browning Associates Public Works 5-yr Strategic Plan $1,486 .0 0 Tennis Landscape Landscape Maintenance $11,106 .00 All Ways Clean, Inc .Park restroom Janitorial $5,705 .00 Eco Counter Damon Garcia Sports Field $3,503 .00 GAZA Graphics $1,565 .00 adjust budget -$3,200.00 Total for Parks &Rec.$20,856 .00 $30,100 .00 $50,956 .0 0 t klllllliiit,,:: Padre Associates Current Year Soil Assessment $1,380.00 Browning Associates Public Works 5-yr Strategic Plan $2,971 .00 Michael Di Milo Education Program $1,862 .00 Verdin Marketing Marketing Services $3,264.0 0 Atkins North America Prado Road Roundabout $1,500 .0 0 Poor Richard Printing Printing Services $1,236 .0 0 Peak Racks Parking Rack Plaques $2,997 .0 0 SLO Regional Rideshare Advertising Projects $5,000 .0 0 Headley Design Bike Racks $3,400 .0 0 SLO County Bicycle Coalition Bicycling Promotion $6,500 .0 0 SLO County Bicycle Coalition Bicycle Transportation Plan $10,300 .0 0 SLO County Bicycle Coalition Bike safety education $6,196 .0 0 Dokken Engineering Design study bike bridge $8,420 .0 0 Hamner, Jewell & Associates Right of Way Services $1,142 .0 0 Total for Public Work s,rr =,!!rlliirs ~l~i{I11 ta,; $56,168 .00 $206,410 .0 0"IT'$262,578 .0 0 ,:INpli tt $120,700.00 $120,700 .00 Department : Community Developmen t `f!tli~< ! t ,n,,jtG;,ey .*11111r,''! Parks & Recreatio n Poor Richard Printin g Kronos Medstop Urgent Care EOC document printin g Telestaff trainin g medical exams Fire $1,367 .00 $2,000 .00 $1,980 .00 Total for Fire $5,347 .00 $76,150.00 $81,497 .00 tIi}fl0i!lliii10ty ll11ryq~~(@@g~~'~j3ttAI8Ab :a9Hll!Alii a,uRNRU a !II!C•._. Totals, All:$1,395,874 .00 $883,600.00 $2,279,474 .00 C :\Users\mcodron\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content .Outlook\3A3NTMIA\list of encumb-carryover amts F Y • RECEIVE D FEB 12 201 3 city of san tuts ostspo, finance anO i .t. aepaRtmen t DATE : February 12, 2013 AGENDA CORRESPONDENC E TO : Mayor & Council Members Datea>1 %"CItem#8/ VIA: Katie Lichtig, City Manage r FROM : Wayne Padilla, Interim Finance Director SUBJECT : Supplemental Schedule for the Agenda item on the mid-year financial update I received a request to provide a supplemental schedule for the mid-year financial update and I am happy to do so . Please find attached a supplemental schedule for the mid-year financia l update which includes a column showing the change in the General Fund's Revised Projectio n amounts compared to the Original Budget as a percentage . This value is derived by dividing th e amount of the variance shown by the Original Budget value for each line item in the report . The original page can be found in the mid-year financial update document at page B22 . Only the percentage column was added and no other values have been changed . Please feel free to contact me with any questions you may have by calling me at 781-7125 or b y e-mail at wpadilla@slocity .org . "UPS •memoRanOumCI aER K • H :\information memos\COUNCIL MEMORANDUM-investments .docr, CHANGES IN FINANCIAL POSITIO N Encumbrances :1,395,872 1,395,872 Carryover/Unused Appropriations :883,400 883,400 Fund Balance Programmed for 2012-13 costs :2,279,272 2,279,272 Revenue s Tax Revenues 45,944,236 46,972,800 47,320,048 347,248 0.74 % Fines and Forfeitures 174,331 162,600 167,250 4,650 2 .86 % Investment and Property Revenues 588,451 695,500 289,000 (406,500)-58.45 % Subventions and Grants 610,099 321,500 1,502,973 1,181,473 367 .49 % Service Charges 6,285,206 5,448,900 5,739,912 291,012 5.34 % Other Revenues 86,330 75,000 524,617 449,617 599 .49 % Total Revenues 53,688,653 53,676,300 55,543,800 1,867,500 Total Resouces Available in Current Year :55,955,572 57,823,07 2 Expenditure s Public Safety 23,953,319 24,849,000 25,113,900 (264,900)1 .07 % Transportation 2,865,100 3,267,800 3,397,603 (129,803)3.97% Leisure, Cultural, and Social Services 6,704,245 7,199,200 7,234,100 (34,900)0 .48 % Community Development 5,514,256 6,023,400 7,364,857 (1,341,457)22.27 % General Government 11,950,048 12,662,200 13,563,200 (901,000)7.12% Total Program Expenditures 50,986,968 54,001,600 56,673,660 (2,672,060) Reimbursed Expenditures (3,774,900)(3,732,100)(3,732,100 ) Total Expenditures 47,212,068 50,269,500 52,941,560 (2,672,060 ) Other Sources (Uses ) Transfers In 1,407,600 1,281,100 1,395,490 114,390 8.93 % Transfers Out (6,713,600)(6,655,900)(6,695,100)(39,200)0.59% Proceeds from Debt Issuance/Premium 5,386,30 0 Other financing use - defeasance (5,571,500) Cost of debt issuance (207,000) MOA & Other Compensation Adj .540,900 540,90 0 Expenditure Savings 1,585,000 1,585,00 0 Total Other Sources (Uses)(5,698,200)(3,248,900)(3,173,710)75,190 Revenues and Other Sources Over (Under ) Expenditures and Other Uses 778,385 2,437,172 1,707,802 (729,370) Fund Balances, Beginning of Year 12,907,900 10,963,800 10,804,213 (159,587) Fund Balances, End of Year $13,686,285 $13,400,972 $12,512,015 ($888,957) Fund Balance Components : Total Fund Balance :$13,686,285 Encumbrances :($1,395,872 ) Carryover/Unused Appropriations :($883,400 ) Debt Service Reserve:($602,800 ) Unrestricted Fund Balance :$10,804,213 $12,512,01 5 Policy Reserve Level @ 20%$9,160,900 $9,884,000 Amount Over (Under) Policy Reserve $1,643,313 $2,628,015 * See page B-48 for explanation . B-2 2 0 GENERAL FUND