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HomeMy WebLinkAbout12-06-2018 REOC Packet RevisedCity of San Luis Obispo, Agenda, Planning Commission Agenda REVENUE ENHANCEMENT OVERSIGHT COMMISSION Thursday, December 6, 2018 5:30 p.m. REGULAR MEETING Council Hearing Room 990 Palm Street San Luis Obispo, CA CALL TO ORDER Chair Michael Multari ROLL CALL : Commissioners Ken Kienow, Jeannette McClure, Winston Newland, Vice Chair Christopher Coates, and Chair Michael Multari OATHS OF OFFICE 1. Administer the Oaths of Office to newly-appointed Commissioner Winston Newland. (Heather Goodwin) PUBLIC COMMENT: At this time, people may address the Committee about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and, if action by the Committee is necessary, may be scheduled for a future meeting. CONSIDERATION OF MINUTES 2. Minutes of the Revenue Enhancement Oversight Commission of May 22, 2018 BUSINESS ITEMS 3. Review Purpose of the Revenue Enhancement Oversight Commission and Elect Officers. Recommendation: Review the purpose and scope of the Revenue Enhancement Oversight Commission and elect a Chairperson and Vice-Chairperson to serve for a one-year term. (Derek Johnson/Ryan Betz) Revenue Enhancement Oversight Commission Agenda for 12/6/18 Page 2 4. 2017-18 Local Revenue Measure Unaudited Year-end Expenditures. Recommendation: Receive a report and review unaudited operating and capital expenditures of local half-percent sales tax revenue in the last fiscal year. (Ryan Betz) 5. Budget Reallocation for the Police Department Facility Replacement Project. Recommendation: Review and recommend to the City Council the reallocation of Local Revenue Measure funds for the Police Station Replacement Project. (Matt Horn) 6. 2017-18 Annual Community Report and Citizen Oversight Meeting. Recommendation: Discuss concepts and provide direction for the 2017-18 Annual Community Report and appoint two Commissioners to serve on a subcommittee to assist in the development of the report. Discuss concepts for the 2017-18 Annual Citizen Oversight meeting. (Ryan Betz) 7. 2019-21 Financial Plan Process and Revenue Enhancement Oversi ght Commission Meeting Schedule. Recommendation: Review the process to develop the 2019-21 Financial Plan and discuss the 2019 Revenue Enhancement Oversight Commission meeting schedule. (Ryan Betz) COMMENT AND DISCUSSION 8. Staff Updates 9. Commission Communications ADJOURNMENT The next Regular Meeting of the Revenue Enhancement Oversight Commission is scheduled for Wednesday, January 23, 2019, 2018, at 6:00 p.m., in San Luis Obispo Veterans Memorial Building, 801 Grand Avenue, San Luis Obispo, California. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. Meeting audio recordings can be found at the following web address: http://opengov.slocity.org/weblink/1/fol/61028/Row1.aspx DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of May 22, 2018 Page 1 Minutes - DRAFT REVENUE ENHANCEMENT OVERSIGHT COMMISSION Tuesday, May 22, 2018 Regular Meeting of the Revenue Enhancement Oversight Commission CALL TO ORDER A Regular Meeting of the San Luis Obispo Revenue Enhancement Oversight Commission was called to order on Tuesday, May 22, 2018 at 5:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Chair Michael Multari. ROLL CALL Present: Commissioners Ken Kienow, Jeannette McClure, (Vacant), Vice Chair Christopher Coates, and Chair Michael Multari Absent: None Staff: Greg Hermann Interim Deputy City Manager, Ryan Betz Interim Assistant to the City Manager, and Daryl Grigsby Public Works Director PUBLIC COMMENT ITEMS NOT ON THE AGENDA None. --End of Public Comment-- APPROVAL OF MINUTES 1. Consideration of Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of April 12, 2018: ACTION: UPON MOTION BY COMMISSIONER COATES, SECONDED BY COMMISSIONER MCCLURE CARRIED 4-0, the Revenue Enhancement Oversight Commission approved the Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of April 12, 2018, as presented. PUBLIC COMMENT None --End of Public Comment-- BUSINESS ITEMS DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of May 22, 2018 Page 2 1. 2018-19 Supplement Budget Ryan Betz, Interim Assistant to the City Manager and Daryl Grigsby, Public Works Director provided a PowerPoint presentation and responded to Commissioner inquiries. Daryl Grigsby, Public Works Director summarized the proposed funding options: Mission Plaza Railing Upgrade, Storm Drain System Replacements, Laguna Lake Dredging, Bike Facilities Improvement, Downtown Renewal, and the Laurel Lane Completes Streets Project. Public Comment None. --End of Public Comment-- ACTION: UPON MOTION BY COMMISSIONER KIENOW, SECONDED BY COMMISSIONER COATES, CARRIED 4-0, to approve staff’s recommendation of the Local Revenue Measure funds for the Laurel Lane Complete Streets Project as part of the 2018-19 Supplemental Budget. COMMENT AND DISCUSSION 1. Staff Communications Greg Hermann Interim Deputy City Manager reminded the commission of the one commission vacancy. Daryl Grigsby Public Work Director announced that Farmers Market will be celebrating Public Works Week. 2. Commission Communications Discussion ensued regarding the idea of having standard operating procedures on how to handle late year adjustments and how to consider multiyear CIP perspectives in the two- year budgeting. By consensus, the commission agreed to agenize this idea at a future meeting in the fall. ADJOURNMENT The meeting was adjourned at 6:17 p.m. The next Regular Revenue Enhancement Oversight Commission meeting is scheduled for Thursday, November 15, 2018 at 5:30 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. APPROVED BY THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION: XX/XX/2018  Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 12/6/18 Item Number: 3 DATE: December 6, 2018 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Ryan Betz, Interim Assistant to the City Manager SUBJECT: REVIEW PURPOSE OF THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION AND ELECT OFFICERS RECOMMENDATION 1. Review the purpose and scope of the Revenue Enhancement Oversight Commission (REOC); and 2. Elect a Chairperson and Vice-Chairperson to serve for a one-year term. DISCUSSION Background On July 15th, 2014, Council adopted an ordinance establishing the Citizens’ Revenue Enhancement Oversight Commission (REOC), to review the half-percent sales tax revenues and expenditures, report on the City’s stewardship of this general purpose tax, and provide recommendations directly to the City Council regarding expenditures of these tax revenues as an integral part of the budget process. The establishment of the REOC became effective following the passage of an extension to the Essential Services Transaction (Sales) and Use Tax (Attachment 1, REOC Ordinance) during the November general election. The REOC is to consist of five members who must be residents of the City. The November 4th, 2014 general election results indicated that 70 percent of voters in the City of San Luis Obispo approved Ballot Measure G that stated: To protect and maintain essential services and facilities – such as open space preservation; bike lanes and sidewalks; public safety; neighborhood street paving and code enforcement; flood protection; senior programs; and other vital services and capital improvement projects – shall the City’s Municipal Code be amended to extend the current one-half percent local sales tax for eight years, with independent annual audits, public goal-setting and budgeting, and a Citizens’ Oversight Commission? Following certification of the election results, the Council and the People of the City of San Luis Obispo adopted an ordinance amending Chapter 3.15 of the Municipal Code to extend the existing Essential Services Transactions (Sales) and Use Tax (Attachment 2, Sales Tax Ordinance). This ordinance details the full text of amended Chapter 3.15, which includes specific citizen oversight and fiscal accountability provisions: A. Revenue Enhancement Oversight Commission. A citizen's commission will be established to provide transparency and maximize City accountability. The Commission will be responsible for reviewing and making budget recommendations directly to the City Council regarding expenditures City of San Luis Obispo, Title, Subtitle    from the essential services transactions (sales) and use tax, and reporting annually to the community on the City's use of these tax revenues. B. Accounting and Tracking Expenditures. The funds collected through the City of San Luis Obispo essential services transactions (sales) and use tax ordinance shall be accounted for and tracked by the City Treasurer separately to facilitate citizen oversight. C. Independent Annual Financial Audit. The amount generated by this general-purpose revenue source and how it was used shall be included in the annual audit of the city's financial operations by an independent certified public accountant. D. Integration of the Use of Funds into the City's Budget and Goal-Setting Process. The estimated revenue and proposed use of funds generated by this measure shall be an integral part of the city's budget and goal- setting process, and significant opportunities will be provided for meaningful participation by citizens in determining priority uses of these funds. E. Annual Community Report. A written report shall be reviewed at a public hearing by the Revenue Enhancement Oversight Commission, and a summary will be provided annually to every household in the community detailing how much revenue is being generated by the measure and how funds are being spent. F. Annual Citizen Oversight Meeting. An invitation will be extended each year to the entire community inviting them to participate in a forum to review and discuss the use of the revenue generated by this measure. City staff will also be available to meet with any group that requests a specific briefing with their members to discuss and answer questions about the revenues generated by the measure and their uses. Purpose and Scope of the REOC The codified charge of the REOC is to review, report and provide recommendations. The REOC is an advisory body to the Council that will provide important citizen oversight of local sales tax revenues and expenditures. The REOC will not be making final decisions on City spending. REOC meetings will be open to the public and serve as a venue for citizen engagement on local sales tax revenues and expenditures. The REOC will also aid in community education and outreach about how much local sales tax is received and where that revenue is being expended. REOC Bylaws The REOC bylaws contain the Commission’s purpose, and policies on conduct, membership, terms, officers, meetings, attendance, quorum, voting, subcommittees, public records and other rules and procedures (Attachment 1, REOC Bylaws). These bylaws state that the REOC shall select a Chairperson and Vice-Chairperson from among its members to serve for a one-year term. ATTACHMENTS 1. REOC Bylaws Citizens’ Revenue Enhancement Oversight Commission The Citizens’ Revenue Enhancement Oversight Commission (REOC) has five members.   Members must be residents and registered voters of the City.  When recruiting members, the  City seeks members that have experience with finance, budgeting, or municipal accounting,  though this is not a requirement of membership.  ARTICLE 1.  MEETINGS  A. The REOC shall meet a minimum of four times per year to conduct its business.  B. REOC regular meetings will follow the diagram below and be integrated into the City’s  budget processes for the two‐year financial plan, fiscal year‐end, and financial plan  supplement. Meeting dates may change from year to year according to the actual  budget schedule.  REOC Bylaws Page 2 C. Agenda items shall be completed by 9:00 p.m. unless the consent of a majority of  commissioners agree to extend the meeting.  D. Regular meetings shall be held in the Council Hearing Room, City Hall, 990 Palm Street,  San Luis Obispo, California.  E. Special meetings may be called by a majority of the REOC, or by City staff in consultation  with the Chairperson, if additional meetings are necessary to accomplish the purpose  and duties of the Commission.  F. In the event that the REOC desires to hold all or any portion of a regular meeting at a  place other than the Council Hearing Room, then the place of such meeting shall be  posted on at the doors of the Council Hearing Room prior to the time designated for the  meeting in accordance with law.    ARTICLE 2.  ELECTION OF OFFICERS  A. The commission shall select a Chairperson and Vice‐Chairperson from among its  members to serve for a one‐year term beginning with the first meeting following the  start of each fiscal year (July 1).  B. Commissioners shall serve as Chairperson or Vice‐Chairperson at the discretion of the  Commission.  C. The Chairperson shall preside at all meetings of the commission. The Vice‐Chairperson is  Chairperson in the absence of the Chairperson or in case of inability of the Chairperson  to act.  ARTICLE 3.  CONDUCT OF MEETINGS  A. Commissioners should address questions through the chairperson.  B. Members of the audience should address commissioners or other persons present  through the chairperson.  C. Procedure for reviewing public hearing items:  After roll call the Chairperson shall announce to the public the procedures to be followed to  consider the items listed on the agenda and then proceed as follows:  1.The Chairperson shall introduce the items and ask for oral staff reports, as appropriate.  2.The staff report previously submitted to the REOC shall be placed into the record with all communications received regarding the item.  Staff reports shall be  submitted for all public hearing items in a form acceptable to the Commission.  3.Members of the public wishing to speak on the topic of the agenda item shall be invited to make a presentation. Public comment shall be accepted for agenda  items that are listed as presentations, business items, or public hearings.  4.Following public testimony on an agenda item, the public hearing or public testimony portion of the meeting shall be closed to the public and discussion  confined to members of the commission; provided that the commission may  reopen the public hearing or invite additional testimony at any time prior to a  decision on an item on an affirmative vote of the majority of those members  present.  REOC Bylaws Page 3 5.The Commission, upon formal motion, shall take action on the item or recommendation. ARTICLE 4.  QUORUM  A. Three members of the commission constitutes a quorum for the transaction of business.    B. No action of the commission shall become effective without receiving the affirmative  vote of a majority of the members present.  ARTICLE 5.  VOTING  A. Except as otherwise provided in the San Luis Obispo Municipal Code and state law, no  motion or any other action shall be passed or become effective without receiving the  affirmative vote of at least a majority of members present.  B. Failure to receive such an affirmative vote shall result in failure or denial, as appropriate,  of the motion or other action.  C. Except as allowed under the Political Reform Action of 1974, any member abstaining  due to a declared conflict of interest shall not participate in the discussion of the items  or otherwise influence or attempt to influence in any manner the decision on the item.  D. All members, when present, must vote except when refraining from participating due to  actual or potential conflict of interest.  E. Commissioners not supporting a motion for action shall summarize the reason for their  vote.  ARTICLE 6.  PUBLIC RECORDS  A. Records of all public hearings shall be made available to the public in the office of the  City Clerk.   B. Secretary – Duties: The secretary shall be a representative of the City Clerk’s Office, and  shall keep minutes of each meeting and shall record the official actions taken. The  records of all proceedings shall be available to the council and to the public.  ARTICLE 7.  ATTENDANCE  A. Any member of the REOC who fails, for any reason, to attend three (3) regular,  adjourned regular, or specially‐scheduled meetings, within any 12 month period, shall  be reviewed by the Chairperson for possible referral to the City Council.  ARTICLE 8.  FILLING VACANCIES AND REMOVAL OF MEMBERS.  A. Vacancies shall be filled for unexpired terms. The council, by majority action, may  remove any commissioner as provided in the City Charter.   ARTICLE 9.  RULES, REGULATIONS AND PROCEDURES.  A. The Commission may adopt rules, regulations and procedures as required for the  transaction of its business. These rules shall become effective upon approval of the  council.      Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 12/6/18 Item Number: 4 DATE: December 6, 2018 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Ryan Betz, Interim Assistant to the City Manager SUBJECT: 2017-18 LOCAL REVENUE MEASURE UNAUDITED YEAR-END EXPENDITURES RECOMMENDATION Receive a report and review unaudited operating and capital expenditures of local half-percent sales tax revenue in the last fiscal year. DISCUSSION Local Revenue Measure Uses The Local Revenue Measure Summary Schedule for the Fiscal Year (FY) 2017-18 lists unaudited expenditures for operating and capital project costs (Attachment 1). Expenditures are broken into the following categories: 1) Open Space Preservation, 2) Bicycle and Pedestrian Improvements, 3) Traffic Congestion Relief/Safety Improvements, 4) Public Safety, 5) Neighborhood Street Paving, 6) Code Enforcement, 7) Flood Protection, 8) Parks and Recreation/Senior Programs and Facilities and 9) Other Vital Services and Capital Projects 8% 5% 7% 19% 41% 4% 8% 7% 1% FY 2017‐18 Local Revenue Measure Operating & Captial  Uses ($7.2M) 1. Open Space Preservation 2. Bicycles and Pedestrian Improvements 3. Traffic Congestion Relief/Safety Improvements 4. Public Safety 5. Neighborhood Street Paving 6. Code Enforcement 7. Flood Protection 8. Parks & Recreation/Senior Programs and Facilities 9. Other Vital Services and Capital Projects Total City of San Luis Obispo, Title, Subtitle      Actual operating expenditures for FY 2017-18 were approximately $2.5 M and capital expenditures were approximately $4.8M totaling approximately $7.3M. Expenditures for the Local Revenue Measure in the 2017-19 Financial Plan were budgeted to account for approximately 33 percent operating and 67 percent capital costs. In the FY 2017-18, unaudited actuals were 33 percent operating and 67 percent capital expenditures. All funds budgeted for capital projects are carried forward in the budget until they are complete. Unexpended funds for operating expenses and completed capital projects go the Local Revenue Measure fund balance at the end of each fiscal year for future appropriation. 1. Operating Uses ($2.5M) 95 percent of budgeted Local Revenue Measure operating program funds were expended in FY 2017- 18. The 5 percent balance remaining was due to salary variances and hiring gaps for individual positions. Any unexpended operating funds go the Local Revenue Measure fund balance for future appropriation. The largest use of local revenue measure funding for operating costs was for Public Safety. Examples of these costs were salaries for the Downtown Patrol Officers. 2. Capital Uses ($4.8M) Approximately 43 percent of Local Revenue measure capital project funds were expended in FY 2017- 18. These funds were a combination of what was budgeted in FY 2017-18 and carryover from FY 16- 17. This is due to multi-year nature of capital improvement projects and some savings from projects that were completed under budget. In addition, project phases don’t always align with fiscal years so while 5% 8% 5% 37% 9% 11% 22% 3% FY 2017‐18 Local Revenue Measure Operating Uses ($2.5M) 1. Open Space Preservation 2. Bicycles and Pedestrian Improvements 3. Traffic Congestion Relief/Safety Improvements 4. Public Safety 5. Neighborhood Street Paving 6. Code Enforcement 7. Flood Protection 8. Parks & Recreation/Senior Programs and Facilities City of San Luis Obispo, Title, Subtitle      encumbrances for the use of funds may be in place they are not reflected as actual expenditures. Project schedules are subject to variables that cause delays and can sometimes be beyond the City’s control. Because the budgeted funds for capital projects carry over year to year until the project is complete, a list of current capital projects, including projects funded from previous fiscal years, has been included in Attachment 1. This list provides the total expenditure amounts for all Local Revenue Measure operating and capital projects and aligns with the City’s 2017-18 Comprehensive Annual Financial Report which is scheduled to be reviewed and approved by the City Council in February, 2019. Any funding remaining once projects are completed will be transferred into a Local Revenue Measure Completed Projects account. This funding could be used for other approved Local Revenue Measure projects that end up costing more than what was budgeted (subject to City Manager approval) or be reprogrammed to other capital projects that meet Local Revenue Measure priorities subject to Revenue Enhancement Oversight Commission (REOC) and City Council approval during the budget process. The largest capital expenditures funded by the Local Revenue Measure in FY 2017-18 were for Neighborhood Street Paving, specifically for street reconstruction and resurfacing neighborhoods on and near Madonna Road and Los Osos Valley Road. 3. Net Available for Future Appropriations As of June 30, 2018, there is no net balance of Local Revenue Measure funding available for future uses. All existing funds for the Local Revenue Measure have been carried over or are already budgeted for the current fiscal year. 9% 4% 7% 11% 58% 1%1%8% 1% FY 2017‐18 Local Revenue Measure Captial Uses ($4.8M) 1. Open Space Preservation 2. Bicycles and Pedestrian Improvements 3. Traffic Congestion Relief/Safety Improvements 4. Public Safety 5. Neighborhood Street Paving 6. Code Enforcement 7. Flood Protection 8. Parks & Recreation/Senior Programs and Facilities 9. Other Vital Services and Capital Projects City of San Luis Obispo, Title, Subtitle      4. Master Accounts Master accounts are an accounting structure the City uses for a limited number of maintenance capital projects that occur throughout the City and are typically funded on an annual basis. For example, master accounts are used for capital projects related to road repair, sidewalk and storm drain maintenance. Because the project scope and funding can range for these types of capital projects, the full funding is grouped into a master account. This flexibility allows project managers to access the appropriate amount of budget once the project bids have been submitted. Once the project has been completed, any remaining project funding is transferred back into the Master account for future projects that fall under that specific category of Local Revenue Measure projects. Per the City’s Financial Management Manual, requests for additional funding for a project from a Master Account must be approved by the City Manager. The current balance of the Local Revenue Measure master accounts have been included in the FY 2017-18 Funding Summary Schedule (Attachment 1) and could be included in the Annual Community Report. The master account structure provides efficiencies to deliver a portfolio of similar types of projects while still providing a high level of oversight by City leadership. Local Revenue Measure Revenues Unaudited revenues from the local half-percent sales tax totaled $7.5 M in FY 2017-18. This is a 1.5 percent increase from last fiscal year and in line with the 2017-18 Budget. Staff is continuously working to refine future revenue forecasts based on current data for both the 2018-19 Mid-Year Budget and the 2019-21 Financial Plan. FY 2017-18 Budgeted Revenues $7,445,096 FY 2017-18 Year End Unaudited Revenues $7,504,485 Interest on Investments $55,638 Total Revenue $7,560,123 Difference (+/-) +115,027 The increase in revenue received is due to higher than expected sales of goods and services. The additional revenue will help offset the unaudited Fund Balance of -$87K. Staff will return to the REOC in the spring, as part of the FY 2017-18 Audit, with a recommended plan to address the budget shortfall as part of the 2019-21 Financial Plan. FY 2018-19 revenue from the Local Revenue Measure is forecasted to be $7.6 M. These projections will change over time and the next update will be presented to the City Council with the 2018-19 Mid-Year Budget in February 2019. ATTACHMENT 1. Fiscal Year 2017-18 Local Revenue Measure Funding Summary Schedule Priority Account Title Description/StatusOriginal 17/18 BudgetYear to Date ActualsOriginal 17/18 Capital BudgetCarryover Budget Total Budget YTD Actuals  Encumbrances Remaining Balance1. Open Space PreservationLaguna Lake Dredging Obtain regulatory permits and begin a maintenance dredging regime for Laguna Lake.40,000                                 52,323                      92,323                          60,789                       112                             31,422                               Open Space Maintenance Implement Open Space fire prevention efforts.5,000                                  ‐                             5,000                           ‐                             ‐                              5,000                                 Ongoing maintenance of Open Space protects natural resources.   Efforts include enhancement to existing trailheads, maintenance and construction of trails and open space facilities for passive recreation purposes, removal of illicit materials, land restoration and stewardship projects, erosion control and stabilization, and education.55,000                                 246,473                    301,473                       235,132                   ‐                              66,341                               Enhanced Open SpacePursue and purchase land and conservation easement to enhance the Greenbelt surrounding the City.  The Greenbelt protects watershed values, habitat connectivity and provides passive recreation opportunities.‐                                        89,583                      89,583                          62,893                       2,280                         24,411                               Enhanced Tree MaintenanceTrim City maintained trees as part of the City's Urban Forest‐                                        470                            470                                470                            ‐                             ‐                                      Open Space ProtectionPursue and purchase land and conservation easement to enhance the Greenbelt surrounding the City.  The Greenbelt protects watershed values, habitat connectivity and provides passive recreation opportunities.100,000                              371,274                    471,274                       49,180                      ‐                              422,094                            Ranger Services Ranger Staffing; FTE = 2139,685                                             130,818 Open Space Wildfire Fuel ReductionOpen Space Wildfire Fuel Reduction5,000                                                               ‐   1. Open Space Preservation Total144,685                                             130,818  200,000                              760,123                    960,123                       408,464                    2,392                         549,267                            2. Bicycles and Pedestrian ImprovementsBicycle Facility ImprovementComplete small‐scale bicycle facility improvements in a cost efficient manner by incorporating them into larger projects such as the City's annual pavement maintenance project.  These funds typical focus on safety improvements that normally would not be completed.100,000                              27,993                      127,993                       64,919                      ‐                              63,074                               Sidewalk RepairReplacement of damaged sidewalk and installation of a limited amout of new sidewalk.  This program continues the City's commitment to provide a complete and assessable pedestrian path of travel.  Replacing defective sidewalk improves accessiablity and reduces risk to users and the City.15,000                                 142,529                    157,529                       51,585                       19,401                       86,542                               Bob Jones Octagon BarnCompleting the planning effort, environmental and permitting work, and land acquisition for the extension of the Bob Jones City‐to‐Sea trail between the Octagon Barn and Los Osos Valley Road‐                                        42,531                      42,531                         ‐                             ‐                              42,531                               Pedestrian and Bike Pathway MaintaintenceMaintain the pathway surface, replacing damaged portions of the surfacing and placing a slurry topping to extend the service service life.  There are approx. 6.5 miles of asphalt concrete pathways and bike paths within the City. Examples of these paths are the Railroad Safety Trail, the Bob Jones Trail and various pathways located within City Parks.60,000                                 38,409                      98,409                          7,093                        ‐                              91,316                               Downtown Renewal*Improve the aesthetic and the safety of the Downtown core. With each project, the addition of pedestrian lighting and conduits to support tree lighting and other Downtown Association activities is incorporated.  The specific location of this work is planned for 858 Higuera Street and that design has been completed.  Funding will support construction activities. 190,000                              6,000                         196,000                      ‐                             ‐                              196,000                            Street Marking Replace Replacing thermoplastic striping, pavement markings, and raised pavement markers‐                                        5,753                         5,753                            5,753                        ‐                             ‐                                      Bicyle Transportation Plan Implementation*Implementation of various Bicycle Transportation Plan projects and programs‐                                        194,745                    194,745                       21,363                      ‐                              173,382                            Bike Bridge/PhillipsExtending the Railroad Trail from the intersection of California Blvd and Phillips Lane to the intersection of Phillips Lane and Pepper Street ‐                                        250,000                    250,000                       25,398                       78,987                       145,615                            Safe Routes To SchoolConstruct 2. Bicycles and Pedestrian Improvements as part of a Safe Routes to School Plan for the Pacheco and Bishop Peak Elementary Schools. ‐                                        44,594                      44,594                         ‐                             ‐                              44,594                               Octagon Barn FacilityCommunity Partnership project will result in an agreement with the Land Conservancy of San Luis Obispo County to support the completion of the Octagon Barn project, which preserves and enhances an important community resource that will serve as a gateway into the City of San Luis Obispo for residents and travelers. ‐                                        184,754                    184,754                      ‐                             ‐                              184,754                            Active Transport PlanUpdate and expand the Bicycle Transportation Plan scope to include pedestrians, creating and Active Transportation Plan that address both Bicycle and Pedestrian transportation. 40,000                                ‐                             40,000                         ‐                             ‐                              40,000                               Sidewalk ReplaceReplacement of damaged sidewalk and installation of a limited amout of new sidewalk.  This program continues the City's commitment to provide a complete and assessable pedestrian path of travel.  Replacing defective sidewalk improves accessiablity and reduces risk to users and the City.5,000                                  ‐                             5,000                           ‐                             ‐                              5,000                                 Railraod Districtu SidewalkReplacement of damaged sidewalk and installation of a limited amout of new sidewalk.  This program continues the City's commitment to provide a complete and assessable pedestrian path of travel.  Replacing defective sidewalk improves accessiablity and reduces risk to users and the City.5,000                                  ‐                             5,000                           ‐                             ‐                              5,000                                 Sidewalk Access ImprovementsReplacement of damaged sidewalk and installation of a limited amout of new sidewalk.  This program continues the City's commitment to provide a complete and assessable pedestrian path of travel.  Replacing defective sidewalk improves accessiablity and reduces risk to users and the City.‐                                        45,000                      45,000                          17,396                      ‐                              27,604                               Transportation Planning and Engineering Engineers, Bike Coordinator; FTE = 1.6189,099                                             189,099 2. Bicycles and Pedestrian Improvements Total189,099                                             189,099  415,000                              982,307                    1,397,307                    193,506                    98,388                       1,105,413                        3. Traffic Congestion Relief/Safety ImprovementsTraffic Safety ReportImplement the projects identified in the 2015 Traffic Safety Report to decrease vehicular collisions, increase pedestrian safety, and reduce vehicle speeds.‐                                        3,000                         3,000                            5,450                        ‐                              (2,450)                                Traffic Operations Report ImplementationImplement one of the projects identified in the 2015 Traffic Safety Report: Speed Feedback Signs. Projects include the Marsh & Broad Traffic Signal and Laurel Lane Road Diet.  These projects are anticpated to decrease vehicular collisions, increase pedestrian safety, and reduce vehicle speeds.‐                                        10,909                      10,909                          1,713                        ‐                              9,196                                 Operating ProgramsCapital Projects 3. Traffic CongestionTraffic Sign MaintReplace traffic signs and roadway striping in order to increase visibility and increase safety in compliance with Federal requirements.25,000                                ‐                             25,000                          2,070                         20,418                       2,512                                 Traffic Safety & Operations ImprovementsAnalyzes vehicular collision, multimodal travel patterns, rank and prioritizes locations, development and construction of mitigation measures to improve safety. Additionally, bi‐annual traffic volume counts are completed citywide to identify and monitor levels‐of service on streets resulting from travel pattern shifts. 30,000                                ‐                             30,000                          436                            ‐                              29,564                               Mont/Osos Traffic SignalImplement the projects identified in the 2015 Traffic Safety Report to decrease vehicular collisions, increase pedestrian safety, and reduce vehicle speeds.‐                                        252,628                    252,628                       252,869                   ‐                              (241)                                   Parking Struct AssessmentA modest portion of the funding to prepare an assessment and rehabilitation study of the City’s three parking structures. ‐                                        8,333                         8,333                           ‐                              5,906                         2,427                                 Traffic Signal Truck  Traffic Signal Truck ‐                                        91,133                      91,133                          91,133                      ‐                             ‐                                      2015 Trafic Safety Report ImprovementsImplement the projects identified in the 2015 Traffic Safety Report to decrease vehicular collisions, increase pedestrian safety, and reduce vehicle speeds.60,000                                ‐                             60,000                         ‐                             ‐                              60,000                               Neighborhood Traffic Improvements Supports the study, design and implementation of neighborhood traffic management needs.75,000                                ‐                             75,000                          1,181                         7,400                         66,419                               Neighborhood Traffic Improvements Study, design and implementation of neighborhood traffic management needs.‐                                        352                            352                                598                            ‐                              (246)                                   Signal and Light Maintenance Technician; FTE=1111,001                                             110,254 3. Traffic Congestion Relief/Safety Improvements Total111,001                                             110,254  190,000                              366,355                    556,355                       355,450                    33,724                       167,181                            4. Public SafetyPolice Motorcycle Replacement Police Motorcycle Replacement ‐                                        4,272                         4,272                            4,272                        ‐                             ‐                                      Police Patrol Utility VehiclePolice Patrol Utility Vehicle‐                                        6,307                         6,307                           ‐                             ‐                              6,307                                 Police Station Replacement StudyFunding to develop a concept plan, implementation plan, and cost estimatefor new Police Department Buidling. The existing building was built in1969, modified over time, and does not meet current operation needs15,000                                 50,000                      65,000                          32,903                       40,787                       6,310                                 Fire Records Management System ReplacementImplementing electronic patient records management for the Fire Department‐                                        16,730                      16,730                         ‐                             ‐                              16,730                               Police CAD hardware Software that updates the connection to County 911 and Sheriff's Office‐                                        25,000                      25,000                         ‐                             ‐                              25,000                               911 Phone System Software that updates the City's 911 phone system‐                                        207,768                    207,768                      ‐                             ‐                              207,768                            Police CAD hardware Software that updates the connection to County 911 and Sheriff's Office‐                                        15,826                      15,826                         ‐                             ‐                              15,826                               Fire Emergency Response Van with AmbulancePackageFire Emergency Response Van with AmbulancePackage‐                                        125,009                    125,009                       124,881                   ‐                              128                                     Fire Command Vehicle Fire Command Vehicle‐                                        25,465                      25,465                          18,053                      ‐                              7,412                                 Police Patrol Sedan Police Patrol Sedan‐                                        46,409                      46,409                          46,409                      ‐                             ‐                                      Police Patrol Sedan Police Patrol Sedan‐                                        46,177                      46,177                          46,177                      ‐                             ‐                                      Police Patrol Unmarked SedanPolice Patrol Unmarked Sedan‐                                        6,193                         6,193                           ‐                             ‐                              6,193                                 Police Traffic Motorcycle Police Traffic Motorcycle‐                                        32,882                      32,882                          32,882                      ‐                             ‐                                      Fire Station #2 Exterior Driveway Ramp ReplacementReplacing the exterior concrete driveway at Fire Station 2‐                                        6,500                         6,500                           ‐                             ‐                              6,500                                 Fire Station #4 Backup GeneratorFire Station #4 Backup Generator7,000                                  ‐                             7,000                           ‐                             ‐                              7,000                                 Police Station Building Maintenance and ImprovementsReplace roof on evidence storage building, install cooling systemfor IT equipment and lobby improvements at the Police Department. 35,000                                ‐                             35,000                         ‐                             ‐                              35,000                               Emergency Dispatch Center Building MaintenanceEmergency Dispatch Center Building Maintenance27,000                                ‐                             27,000                          14,720                       5,530                         6,750                                 Pest Control Pest Control28,000                                ‐                             28,000                         ‐                              10,500                       17,500                               Fire Station #1 Masonry SealFire Station #1 Masonry Seal65,000                                ‐                             65,000                         ‐                             ‐                              65,000                               Fire Station #2 Exterior PaintFire Station #2 Exterior Paint33,700                                ‐                             33,700                         ‐                             ‐                              33,700                               Police Handheld and Vehicle Radio ReplacementPolice Handheld and Vehicle Radio Replacement180,000                             ‐                             180,000                      ‐                              162,554                    17,446                               South Hills Radio Upgade South Hills Radio Upgade250,000                             ‐                             250,000                       11,546                       75,058                       163,397                            Facility Security Cameras Facility Security Cameras26,500                                ‐                             26,500                          17,404                      ‐                              9,096                                 Police Digital Storage Equipment ReplacementPolice Digital Storage Equipment Replacement80,000                                ‐                             80,000                          80,000                      ‐                             ‐                                      Police Patrol Vehicles Police Patrol Vehicles51,000                                ‐                             51,000                         ‐                             ‐                              51,000                               Police Patrol Vehicles Police Patrol Vehicles51,000                                ‐                             51,000                         ‐                             ‐                              51,000                               Police Traffic Motorcycle  Police Traffic Motorcycle 34,000                                ‐                             34,000                          33,040                      ‐                              960                                     Fire Emergency Response VehicleFire Emergency Response Vehicle58,000                                ‐                             58,000                          43,261                      ‐                              14,739                               Street Lighting Support requests for new street lighting.20,000                                ‐                             20,000                         ‐                             ‐                              20,000                               Patrol Services Officers, Sergeant; FTE = 4892,388                                             892,388 4. Public Safety Total892,388                                             892,388  961,200                              614,538                    1,575,738                    505,549                    294,429                    790,761                             5. Neighborhood Street PavingStreet Reconstruction and ResurfacingPavement maintenance is used to increase roadway life, smoothness, and usability. Maintaining pavement on a regular basis results in decreased risks to the community and lower pavement maintenance costs in the future.  Over the two year period this funding is planned to be used for roadway maintenance on Los Osos Valley Road, Madonna Road, Broad Street and Areas 2 and 3 of the Pavement Management Plan will go to Council in May (Laurel Lane, Southwood.1,600,000                          (1,226,351)              373,649                       192,614                    300                             180,735                            Concrete St/Access 18Concrete road maintenance is used to increase roadway life, smoothness, and usability. Maintaining pavement on a regular basis results in decreased risks to the community and lower pavement maintenance costs in the future.  ‐                                        575,160                    575,160                       105,992                    469,169                   ‐                                      Streets Asphalt Grinder Streets Asphalt Grinder‐                                        90,676                      90,676                          90,676                      ‐                             ‐                                      Streets 3/4 Ton Pickup  Streets 3/4 Ton Pickup ‐                                        1,152                         1,152                            1,152                        ‐                             ‐                                      Madonna & LOVR Street Resurfacing Project Completed. Project included rehabilitation of Madonna Road and Los Osos Valley Road.‐                                        2,148,916                2,148,916                    2,148,916                 ‐                             ‐                                      Corp. Yard & Fire Station Rollup DoorCorp. Yard & Fire Station Rollup Door9,500                                  ‐                             9,500                            9,500                        ‐                             ‐                                      Streets Program Dump Truck Streets Program Dump Truck 65,000                                 (65,000)                    ‐                                ‐                              65,000                       (65,000)                             Streets Crack Sealant MachineStreets Crack Sealant Machine53,000                                 (4,801)                       48,199                          48,199                      ‐                             ‐                                      Streets Skip/Drag Loader Streets Skip/Drag Loader133,000                             ‐                             133,000                       122,406                   ‐                              10,594                               Streets Sweeper Truck Streets Sweeper Truck65,000                                 (65,000)                    ‐                                ‐                             ‐                             ‐                                      Fleet Electric Forklift Fleet Electric Forklift35,000                                ‐                             35,000                          35,000                      ‐                             ‐                                      Streets Maintenace Medium Duty TruckStreets Maintenace Medium Duty Truck120,000                             ‐                             120,000                      ‐                              101,781                    18,219                               Streets and Sidwalk MaintenanceMaintenance Worker; FTE = 1214,594                                             214,594 5. Neighborhood Street Paving Total214,594                                             214,594  2,080,500                          1,454,752                3,535,252                    2,754,455                 636,249                    144,548                            6. Code EnforcementMission Plaza RailingReplace or reconstruct existing railings in the Mission Plaza to meet current ADA and Building Codes as well as increase safety for the community. Currently, the vertical railing pickets of the railing are spaced too widely and would not prevent a small child from going through the guard railing or getting stuck between the pickets.‐                                        139,875                    139,875                       59,875                      ‐                              80,000                               Building and Safety Code Enforcement Officer, Neighborhood Services Specialists; FTE = 3252,729                                             252,729 6. Code Enforcement Total252,729                                             252,729  ‐                                        139,875                    139,875                       59,875                      ‐                              80,000                               7. Flood ProtectionMarsh Street Bridge RepairReplace the Marsh Street Bridge, near the intersection of Marsh and Santa Rosa Streets.‐                                        725,869                    725,869                       780                            ‐                              725,089                            Storm Drain System ReplacementDesigns are underway for priority storm drain replacement locations. The bulk of available funding was reallocated to the Laurel Lane Project; however, major storm drain replacement work was incorporated into a waterline replacement project currently under construction. Upcoming work dependent upon 19‐21 Budget.231,000                              434,622                    665,622                       57,408                       10,856                       597,357                            Broad/Leff Culvert Stormdrain replacement.‐                                        10,000                      10,000                         ‐                              8,603                         1,397                                 Creek and Flood Protection Collection Operators, Stormwater Management Plan; FTE = 6641,742                                             608,578 7. Flood Protection Total641,742                                             608,578  231,000                              1,170,491                1,401,491                    58,188                       19,459                       1,323,843                        8. Parks & Recreation/Senior Programs and FacilitiesPark Major Maintenance and RepairsParks require ongoing maintenance in order to continue to provide users a safe and quality experience. This funding will address bridge replacements at  Meadow Park, reconstruct hardscape at Sinsheimer Court, hydration station installation and replacement of the irrigation system at Sinsheimer Park.170,000                              326,151                    496,151                       20,734                      75                                475,342                            French & Islay Tennis Court ResurfacingResurface the French & Islay Park tennis and basketball court‐                                        2,630                         2,630                           ‐                             ‐                              2,630                                 Sinsheimer Park Baseball Backstop ReplacementSinsheimer Park Baseball Backstop Replacement‐                                        98,500                      98,500                          2,385                        ‐                              96,115                               City/County Library Remodel, Major Maintenance and ADA ComplianceCity/County Library Remodel, Major Maintenance and ADA Compliance405,300                             ‐                             405,300                       259,524                   ‐                              145,776                            City/County Library HVAC ReplacementCity/County Library HVAC Replacement3,600                                  ‐                             3,600                            2,500                        ‐                              1,100                                 Parks & Rec Admin HVAC ReplacementParks & Rec Admin HVAC Replacement7,200                                  ‐                             7,200                            4,764                         2,436                        ‐                                      Swim Center Filter Control Swim Center Filter Control18,500                                ‐                             18,500                          8,022                        ‐                              10,478                               Ludwick Center Gym LightsLudwick Center Gym Lights15,500                                ‐                             15,500                         ‐                             ‐                              15,500                               Parks Maintenance Pickup TruckParks Maintenance Pickup Truck35,000                                 (1,780)                       33,220                          33,220                      ‐                             ‐                                      Parks Maintenance TractorParks Maintenance Tractor42,000                                ‐                             42,000                          42,000                      ‐                             ‐                                      Parks Maintenance Utility CartParks Maintenance Utility Cart26,000                                 (1,548)                       24,452                          24,452                      ‐                             ‐                                      Parks and Landscape Maintenance Maintenance Worker; FTE = 183,520                                                   83,520 8. Parks & Recreation/Senior Programs and Facilities Total83,520                                                   83,520  723,100                              423,953                    1,147,053                    397,601                    2,511                         746,941                             9. Other Vital Services and Capital ProjectsCity Hall Chiller ReplacementCity Hall Chiller Replacement227,400                             ‐                             227,400                       14,476                       144,739                    68,185                               Multi‐Site Energy Management SoftwareMulti‐Site Energy Management Software24,000                                ‐                             24,000                          15,400                      ‐                              8,600                                 City Hall Building MaintenaceCity Hall Building Maintenace24,500                                ‐                             24,500                          24,018                      ‐                              482                                     Completed Projects Available balance from completed capital projects‐                                        66,997                      66,997                         ‐                             ‐                              66,997                               9. Other Vital Services and Capital Projects Total275,900                              66,997                      342,897                       53,894                       144,739                    144,263                            Grand Total2,529,758             2,481,980 5,076,700            5,979,390    11,056,090     4,786,982     1,231,891     5,052,217          *Laguna Lake Dredging ($100,000),  Bicycle Facility Improvements ($25,000), Downtown Renewal ($160,000), Storm Drain System Replacement ($317,100) was reallocated to the Laurel Lane Complete Streets Project as part of the adopted 2018‐19 Supplemental Budget   May 22, 2018 Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 12/6/18 Item Number: 5 DATE: December 6, 2018 FROM: Matt Horn, City Engineer SUBJECT: BUDGET REALLOCATION FOR THE POLICE DEPARTMENT STATION REPLACEMENT PROJECT RECOMMENDATION Review and recommend to the City Council the reallocation of Local Revenue Measure funds for the Police Station Replacement Project. DISCUSSION Background As part of the 2017-19 Financial Plan, several Capital Improvement Plan Projects received local revenue measure funds to address the aging Police Department station. Those projects include addressing: 1. The parking lot; 2. Operational space needs; 3. The evidence storage building; 4. Exterior painting of the Police Department; 5. The boiler; and, 6. A study and conceptual design of the eventual replacement of the Police Station. The preliminary design work and delivery timeframe development that was completed as part of the Police station conceptual design work, allowed staff better information to prioritize what maintenance and improvements should be completed before the eventual Police Department station replacement. With the goal of maintaining a safe and operational Police Department yet reducing the resources committed to a facility that is planned for replacement, staff is recommending the cancellation of the Operational space needs work and reallocation of those project funds to the existing Police Department station replacement project. After balancing the cost, benefit and risks associated with not completing the operational space needs work, all project team members were of the opinion these resources would be better served funding the Police station replacement work except for some expanded maintenance painting that must be completed to encapsulate lead paint on the existing Police Department Annex Structure. The Police Station Replacement project is currently estimated to cost in the $50 to 60 million dollar range and will take approximately 10 years to develop, design, fund, and construct. The additional funds being requested will allow completion of the planning and preliminary project assessment phase of design development. This will include site plan preparation and Staff Report – Budget Allocation for Police Department Station Replacement Project Page 2    development of the planning package and building renderings necessary for future architectural design, engineering, and cost estimating elements. FISCAL IMPACT The following table shows the Local Revenue Measure funding for the projects recommended for cancelation and funding reallocation to the Police Station Replacement Project. Approved Funding Project FY 2017-18 FY 2018-19 Total Operational Space Needs $35,000 $89,000 $124,000 Recommended Reallocation Operational Space Needs - - - Police Department Replacement $15,000 $89,000 $104,000 Maintenance Painting $20,000 $20,000 Total Change $0 $0 $0 CONCERENCES This recommendation has the concurrence of the Police Department. ALTERNATIVES The Commission could choose to deny the reallocation of Local Revenue Measure funds for the Police Station Replacement Project. Staff recommends the Commission not choose this alternative because staff has analyzed cost, benefit and risk associated with not completing the operational space needs and determined the funding would be better used towards the Police Station Replacement project.     Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 12/6/18 Item Number: 6 DATE: December 6, 2018 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Ryan Betz, Interim Assistant to the City Manager SUBJECT: 2017-18 ANNUAL COMMUNITY REPORT AND CITIZEN OVERSIGHT MEETING RECOMMENDATIONS 1. Discuss concepts and provide direction for the 2017-18 Annual Community Report; and 2. Appoint two Commissioners to serve on a subcommittee to assist in the development of the report; 3. Discuss concepts of the Community Forum and the 2017-18 Annual Citizen Oversight Meeting. DISCUSSION Chapter 3.15 of the Municipal Code (the Essential Services Transactions [Sales] and Use Tax) includes specific citizen oversight and fiscal accountability provisions. These provisions include an annual community report and annual citizen oversight meeting: Annual Community Report. A written report shall be reviewed at a public hearing by the Revenue Enhancement Oversight Commission, and a summary will be provided annually to every household in the community detailing how much revenue is being generated by the measure and how funds are being spent (MC 3.15.040.E). Annual Citizen Oversight Meeting. An invitation will be extended each year to the entire community inviting them to participate in a forum to review and discuss the use of the revenue generated by this measure. City staff will also be available to meet with any group that requests a specific briefing with their members to discuss and answer questions about the revenues generated by the measure and their uses (MC 3.15.040.F). Annual Community Report The community report is produced annually based on revenues and expenditures from the previous fiscal year. The most recent report was published for Fiscal Year (FY) 2016-17 (Attachment 1). This report included: 1. Background of the sales tax measure 2. Current and historical detail on Local Revenue Measure funding 3. How Local Revenue Measure funds were used including Project Spotlight descriptions and photography 4. Planned Local Revenue Measure uses for the following year 5. Detailed Local Revenue Measure funding schedule City of San Luis Obispo, Title, Subtitle      6. REOC members The REOC should consider concepts and provide any direction on ways to enhance this report for the public. Some previous improvements included: 1. Adding more storytelling spotlights including project photography 2. Translating some of the “government jargon” into meaningful and simple terms 3. Eliminating some of the narrative 4. Enlarging the one-page version for public distribution to legal size for inclusion in utility bills (Attachment 2) 5. Revising the look and feel to align with City style guide standards 6. Switching to a landscape format to allow for easy reading on a computer. Recommendations for the 2017-18 report are: 1. Maintain styling from new & improved 2016-17 report – easy to read, in line with City branding, will help develop consistency, received positive feedback 2. Maintain one-sheet as legal size for more storytelling space 3. Use design cost savings for additional photography to highlight 2017-18 projects 4. Improve timeline of initiatives/projects pipeline – add dates, additional projects 5. Photos and names of REOC members 6. Utilize the same LRM logo in lockup with SLO City logo on cover and back page The City will be using AMF Media Group (AMF) to design the report. AMF is a San Luis Obispo-based public relations and marketing firm and currently provides a variety of City-wide communications support services. The Annual Community Report in Brief will be included in City utility bills in March and discussed at the Annual Community Report Meeting in March, 2019. Annual Citizen Oversight Meeting The Annual Citizen Oversight Meeting is intended to provide an opportunity for the public to learn about how funds generated from the Local Revenue Measure were spent and provide feedback. The meeting meets the obligations identified in City’s Municipal Code related to the Local Revenue Measure (MC 3.15.040.F). When the Annual Citizen Oversight Meeting occurs in the same year as the development of the City’s two-year financial plan, the meeting is included as a part of the biennial Community Forum, a joint meeting with the City Council, and is associated with the financial plan development process. That was the case for the 2015-16 year’s Annual Citizen Oversight Meeting. The biennial Community Forum for the 2019-21 Financial Plan will be held on January 23, 2019 at the San Luis Obispo Veteran’s Memorial Building on 801 Grand Avenue, San Luis Obispo, beginning at 6:00 p.m. ATTACHMENTS City of San Luis Obispo, Title, Subtitle      1. 2016-17 Annual Community Report  2. 2016-17 Annual Community Report in Brief   Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 12/6/18 Item Number: 7 DATE: December 6, 2018 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Ryan Betz, Interim Assistant to the City Manager SUBJECT: 2019-21 Financial Plan Process and Revenue Enhancement Oversight Commission Meeting Schedule RECOMMENDATIONS 1. Review the process to develop the 2019-21 Financial Plan; and 2. Discuss the REOC meeting schedule. DISCUSSION Background The City utilizes a two-year financial planning process to create its budgets. This process includes extensive public outreach to assist the City Council in establishing Major City Goals. The benefits of this process are two-fold, it ensures that resources are provided in the budget to accomplish the community’s highest priority, most important objectives, and it helps create a mutual understanding among residents, decision makers, and staff about what can be achieved by working together. The fundamental purpose of the City’s Financial Plan is to link what the City wants to accomplish for the community with the resources necessary to do so. The City’s Financial Plan process does this by: 1) clearly setting major city goals and other important objectives; 2) establishing reasonable time frames and organizational responsibility for achieving them; and 3) allocating resources for programs and projects. A complete schedule for the 2019-21 Financial Plan was presented to the City Council on October 2, 2018 (Attachment 1). The City is currently in Fiscal Year Two of the 2017-19 Financial Plan, and the goal-setting process for the 2019-21 Financial Plan is now underway. REOC Meeting Schedule The REOC standard meeting is included below and was created to complement the existing financial plan development schedule: City of San Luis Obispo, Title, Subtitle    Staff recommends the Commission consider the following meeting schedule. Fiscal Year Two A. January 23, 2019 - Citizen Oversight Meeting to be incorporated into the Community Forum. In previous years, the Citizen Oversight Meeting for the Local Revenue Measure has occurred as a part of the Community Forum. This allows the public to only attend one meeting to provide feedback on both the overall City budget as well as the Local Revenue Measure. The Community Forum (January 23, 2019) would be a special joint meeting of the REOC and City Council. This Community Forum will build on best practices from prior years as well as implement several changes based on feedback. Those changes include: - Incorporation of a workshop format which will allow for more interaction and conversation with staff and the public. Public comment will be included for those that wish to address the Council and REOC directly and elaborate on an idea or concept. - The use of stations to build on input already received through the survey including existing Major City Goals. This will allow community members to provide more specific feedback and ideas on what could be included future workplans. There will also be a station for new Major City Goal ideas. City of San Luis Obispo, Title, Subtitle    - A dot exercise that will allow community members to prioritize potential Major City Goals. - An opportunity to prioritize project and services categories for Local Revenue Measure funding. - Opportunities to learn more about the City’s core services, Fiscal Health Response Plan and other topics. The proposed changes are intended to broaden the ways in which the public can provide feedback, provide additional focus on core services and current Major City Goals and build on input already received through an online survey. B. February, 2019 - Hold a meeting to review the draft Annual Community Report. The purpose of this meeting is to review the draft Annual Community Report and prior to final distribution of the report in March and the Report in Brief in the March utility bills. C. March, 2019 - Hold a meeting to discuss the Annual Community Report. The REOC is required to hold a public hearing to discuss the Annual Community Report. The data used in the report is based on the audited figures used for the Comprehensive Annual Financial Report (CAFR). The CAFR is completed by the end of the calendar year, but the Council does not approve it until February. It is recommended that the distribution of the Annual Community Report be aligned with the approval of the CAFR and the public hearing to discuss the report be held in March. This would be combined with a currently planned March meeting to discuss budget recommendations or be a separate meeting. ATTACHMENT 1. October 2nd, 2018 City Council Agenda Report – Financial Plan Schedule for 2019-21   Meeting Date: 10/2/2018 FROM: Derek Johnson, City Manager, Brigitte Elke, Interim Finance Director Prepared By: Alex Ferreira, Budget Manager SUBJECT: FINANCIAL PLAN SCHEDULE FOR 2019-21 RECOMMENDATION Approve the goal setting process and timetable for development of the 2019-21 Financial Plan. REPORT-IN-BRIEF This report sets forth the proposed Council goal setting process and schedule for the development of the City’s 2019-21 Financial Plan. The key dates and steps in the goal-setting process are summarized below and then discussed in greater detail. The Council meeting dates shown in June 2019 cover the review and ultimate adoption of the budget generated by staff following the Goal Setting process and Strategic Budget Direction. Proposed Key Council Meeting Dates: Goal-Setting Process for 2019-21 1) Tuesday, November 13, 2018 Special Meeting Setting the Stage. Provide the background needed for goal- setting by considering the current status of both long- and short-term goals previously adopted by the City. This meeting will focus on the incorporation of the City’s Fiscal Health Response Plan into the 2019-21 Financial Plan. 2) Tuesday, December 4, 2018 Regular Meeting Budget Foundation. Finalize plans for the goal-setting process including a deadline for submitting Council Member candidate goals; review Financial Plan policies and organization of the Financial Plan itself; review of long-term economic forecast; hold initial discussion on options to be considered for paying down the unfunded liabilities. 3) Wednesday, January 23, 2019 Special Workshop 6:30 to 9:30 p.m. Community Forum. Consider comments and suggested goals from residents, community groups, other interested individuals, and Council advisory bodies. 4) Saturday, February 9, 2019 Special Workshop 8:30 AM to 4:00 PM Council Goal-Setting Workshop. Discuss candidate goals presented at the Community Forum; consider Council member goals; prioritize and set Major City Goals. 5) Tuesday, February 5, 2019 Regular Meeting Mid-Year Report and Guiding Principles for Allocation of Resources. Review 2017-18 financial results based on the City’ Comprehensive Annual Financial Report; review the updated Five-Year Forecast; hold initial discussion on guiding principles for fund allocation within the 2019-21 Financial Plan framework and options to be considered for paying down the unfunded liabilities. Packet Pg. 99 Item 11 Proposed Key Council Meeting Dates: Goal-Setting Process for 2019-21 6) Tuesday, April 16, 2019 Regular Meeting Major City Goal Work Programs & Strategic Budget Direction. Conceptually approve detailed work programs for Major City Goals adopted by the Council; set strategic budget direction for preparation of the 2019-21 Financial Plan. 7) June 4, 2019 Regular Meeting Preliminary Budget Review. Hold workshops to review and discuss Preliminary Budget: General Fund and Enterprise Funds operating programs and General Fund CIP and rates. 8) Tuesday, June 18, 2019 Regular Meeting Continue Financial Plan Review and Adopt Budget. Hold a special meeting on June 25, if needed, to continue review and adopt budget. DISCUSSION Based on the City’s experience over the years, and informed by Council and community feedback, staff recommends beginning the two-year 2019-21 Financial Plan process with the Council setting the goals for the most important initiatives for the City to accomplish over the two years of the next financial plan. This has been a successful approach in assuring the most optimal achievement of the fundamental purpose of the City's budgetary process which is: Linking, through public engagement and decision-making processes, the interests of the community to optimize the allocation of financial resources to achieve the desired results. As mentioned above, staff is recommending a six-step process for identifying and reaching agreement on financial policies and the Council’s Major City Goals. Each of the five major goal setting steps is described in greater detail below: 1. “Setting the Stage” Workshop. A special meeting on Tuesday, November 13, 2018 will be devoted to a comprehensive review of the status of current City plans, goals, policies, and programs. This is an especially appropriate start as the Council goal-setting process should take into consideration the City’s adopted long-term plans, current two -year goals, and an updated fiscal outlook. Accordingly, staff plans to present reports on the following: a. Status of General Plan Programs. Staff plans to present an overview of the status of each General Plan program in each of the ten elements (over 400 programs in total). Organized by element, staff will provide a short summary of each program, whether it has been completed, and if not, a high-level assessment of how challenging it will be to complete. As two years ago, staff also plans to present a similar summary of the status of the programs in the Conceptual Physical Plan for the City’s Center. While this is not a General Plan Element, it is referenced in the General Plan, and several of its programs are closely linked and provide a framework for Downtown development. Packet Pg. 100 Item 11 b. Long Term Capital Improvement Plan. This will provide a “high level” summary of the estimated costs of the new facilities and infrastructure that will be needed to implement the General Plan based on plans and policies previously adopted by the Council. c. Status of the Current Two-Year Major City Goals: Carryover and Spin-Offs. Since some of the Major City Goals may not be complete by June 2019, the unfinished work needed to complete them may be considered again as Major City Goals for the 2019-21 Financial Plan. For those goals where the specific work programs for 2017 -19 may be completed by June 2019, there may be “spin-off” tasks as a result. This is especially true for work programs where the objective was to complete plans or studies. A likely “spin- off” into 2019-21 may be the implementation of these studies. d. Status of Current Capital Improvement Plan (CIP) Projects. This report will present an overview of the status of all current CIP projects. It will also identify candidate projects for deletion or deferral based on their status and priority relative to other needs that have emerged since they were initially approved. Based on the volume of information to be conveyed at the “Setting the Stage Workshop,” it would be most effective to hold a dedicated budget workshop to ensure adequate time for the Council to ask questions and fully discuss any issues. 2. “Budget Foundation” Workshop. This meeting on Tuesday, December 4, 2018 will be dedicated to generating policy guidance from Council that will serve as the foundation for the City’s budget and goal-setting process. Staff plans to cover the following topics at this workshop: a. Finalize plans for the Community Forum and Council Goal-Setting Workshop. Staff will present a proposed approach for the forum and goal-setting workshop at this meeting. b. Review of Financial Plan policies contained in Section B of the 2017-19 Financial Plan and update or recommend changes as appropriate. This may include proposed changes to the existing fund balance targets for enterprise funds and the capital replacement funds. c. Review the organization of the Financial Plan and obtain Council guidance regarding the style of presentation expected or preferred by Council. d. Review the long-term economic forecast. e. Hold initial discussion on the considered options for paying down the unfunded liabilities. Based on Council feedback, staff would return in February with the plan reflecting these options. Getting guiding principles direction from the Council in February will be helpful in crafting the recommendations contained when Strategic Budget Direction is sought in April 2019. 3. Community Forum. Held on the evening of Wednesday, January 23, 2019, the purpose of this workshop is to solicit and discuss suggested goals and work programs from Council advisory bodies, community groups and interested individuals. Advisory Body goals will be developed during the fall of 2018 and submitted to staff in final for m by the mid November 2018. Based on last year’s attendance, staff plans on holding the forum at the Veterans’ Hall. Packet Pg. 101 Item 11 Other Community Outreach Efforts. Following Council approval of the budget calendar, staff will mail notices to community groups, governmental agencies, media organizations and interested individuals inviting them to participate in this process. In addition to these notices, staff plans to place display ads in The Tribune, SLO Journal, SLO City News, and New Times and use social media in order to encourage the broadest possible participation in this process. Information about the goal-setting and budget process will also be placed on the City’s web site and City Hall. Staff also intends to again insert a Community Budget Bulletin in all utility bills inviting the public to participate in the goal-setting and budget process and soliciting comments on the three to five most important things for the City to do in the next two years.” In the past, this approach has generated hundreds of replies which were distributed to the Council along with a summary of the “top emerging themes.” 4. Mid-Year Report and Guiding Principles for Allocation of Resources. The Mid-Year Review and review of the Five-Year Forecast scheduled for Tuesday, February 5, 2019, will allow the Council an early opportunity to provide guiding principles and direction for paying down unfunded liabilities and efficient allocation of resources with the 2019 -21 Financial Plan focusing on community priorities. 5. Council Goal-Setting Workshop. Following the receipt of written and oral comments during the Community Forum, the Council goal-setting workshop will be held on Saturday, February 9, 2019 in the Council Chambers. This will be an all-day workshop to answer the question, What are the most important, highest priority things for the City to accomplish over the next two years?” Council will be asked to provide up to five goals before the workshop which staff will organize and distribute prior to the workshop. As in the past, staff recommends the use of a professional facilitator to assist in prioritizing input into three categories, Major City Goals, Other Council Objectives, and Address as Resources Permit. Using an independent facilitator allows all Council members to participate fully in the process; and allows staff to devote their efforts to listening to the discussion. Moreover, the facilitator can assist the Council ensuring that the number and scope of the goals established are appropriate. 6. Major City Goal Work Programs and Strategic Budget Direction. On Tuesday, April 16, 2019, this workshop is a critical part of the budget process. It affords the City Council an opportunity to review the draft work programs and associated financial resources proposed to accomplish Major City Goals established by the City Council in January. At this stage of the process the City Council provides direction on any changes needed to refine these work programs and resource allocations to better achieve the desired outcomes. Additionally, the City Council is asked to provide the City Manager with the key policy direction needed to allocate resources in line with Council’s expectations or to further amend budget or fiscal policies that align with Council direction. This process is extremely helpful so that the Preliminary Financial Plan that is presented to the City Council and community in May mirrors the Council’s expectations as much as possible. Packet Pg. 102 Item 11 At this meeting, staff will prepare detailed work programs for the Major City Goals in order to: a. Clearly define and scope the work program. b. Ensure that there is a clear understanding of the means used in pursuing the goal. c. Convert the general goal into specific action steps, so progress can be measured. Each work program will provide the following information: Objective. What is to be to accomplish? (This will be based on the objective adopted by the Council at the January 26th goal-setting workshop.) Discussion. What are the factors driving the need for this goal? What act ions have already been taken in trying to resolve this problem area? What are the key assumptions? What key challenges, constraints or obstacles can be expected in achieving this goal? What concerns, or issues will remain unresolved even if the goal is achieved? Who are the key stakeholders? Action Plan. What specific tasks will need to be accomplished in order to achieve the goal, and when will they be completed? These “action steps” are the fundamental building blocks in defining and scoping the work program, and in monitoring the progress in accomplishing the goal over the next two years. Responsible Department. Who is accountable for getting it done? Financial and Staff Resources Required to Achieve the Goal. What will it take to achieve the goal? Will resources be needed (staffing, contract services, CIP project) to do this? Outcome: Final Work Product. What are the “deliverables?” 7. Budget Hearings and Budget Adoption. Budget hearings (also known as “Fund Reviews” including the City’s four enterprise funds) are currently scheduled for two consecutive meeting days in June. This will allow for a third meeting to be added for the approval of the 2019-21 Financial Plan, should the need arise. Council Advisory Body Participation Consistent with past Council direction, the advisory bodies will again play an important role in the goal-setting process by providing the Council with their recommended goals for 2019 -21. Staff will provide advisory body members with background materials outlining t heir important role in this process. An update on this process is also scheduled to be presented at the next quarterly meeting with the Mayor and advisory body chairs in October 2018. Lastly, staff liaisons are already beginning to work with Advisory Body Chairs in scheduling time for this purpose at upcoming advisory body meetings. Packet Pg. 103 Item 11 SUMMARY This report sets forth the proposed Council goal setting process and schedule for the development and ultimate adoption of the City’s 2019 -21 Financial Plan. Council will be asked to consider whether the budget workshop dates are acceptable or need to be changed to suit the needs for reviewing the preliminary financial plan. ENVIRONMENTAL IMPACT Approving the Financial Plan schedule for 2019-21 is not a project as considered by California Environmental Quality Act (CEQA) and does not require any environmental review. FISCAL IMPACT There is no direct fiscal impact from the adoption of the 2019 -21 Financial Plan and Goal Setting Schedule. The Goal Setting Process and the development of the Financial Plan inherently take considerable amounts of staff time. Publicizing the process and notification of interested parties will engender nominal advertising and mailing costs covered through current allocations in the City Clerk, and Finance budgets. Attachments: a - Proposed 2019-21 Financial Plan Schedule Packet Pg. 104 Item 11 Attachment A: 2019-21 Financial Plan Calendar: Proposed Key Dates for Council Date Responsible Action 1 October 2, 2018 Regular Meeting Council Approves 2019-21 Financial Plan Schedule 2 October 11, 2018 City Manager/ Finance Updates advisory body chairs on the goal-setting process at the Mayor’s quarterly meeting 3 November 6, 2018 Finance Sends letters inviting participation in goal-setting process to community groups and interested individuals. Begin inserting Community Budget Bulletins in utility bills 4 November 13, 2018 Advisory Bodies Provides recommended goals to Finance 5 November 13, 2018 Special Meeting Council Setting the Stage workshop on status of General Plan programs, long-term capital improvement plan (CIP), status of Major City Goals and Other Important Objectives, and CIP projects 6 November 20, 2018 Finance Distributes consolidated listing of draft recommended goals to advisory bodies for their review 7 December 4, 2018 Regular Meeting Council Budget Foundation: Finalizes goal-setting process and plans for Community Forum. Review and provides guidance regarding Financial Plan policies. 8 December 13, 2018 Finance Receives written comments from community groups and interested individuals, and any changes in goals from advisory bodies 9 January 23, 2019 Special Workshop Council Community Forum at the Veterans’ Hall to receive and review goals presented by individuals, community groups, and advisory bodies 10 February 5, 2019 Regular Meeting Council Mid-Year Report and Guiding Principals for Allocation for Resources. Review of results from 2017-18; Review Five Year Forecast; hold initial discussion on guiding principles for fund allocation within the 2019-21 Financial Plan framework and options to be considered for paying down unfunded liabilities. Packet Pg. 105 Item 11 Attachment A: 2019-21 Financial Plan Calendar: Proposed Key Dates for Council Date Responsible Action 11 February 9, 2019 Special Workshop Council Saturday Goal-Setting Workshop to discuss candidate goals presented at the January 23 Community Forum; discusses Council member goals distributed on January 28; prioritizes and sets Major City Goals 12 April 16, 2019 Special Workshop Council Approves detailed work programs for Major City Goals. Sets strategic budget direction in preparing Preliminary Financial Plan 13 May 13, 2019 City Manager Finalizes budget recommendations and issues preliminary budget 14 May 15, 2019 Planning Commission Reviews CIP for consistency with General Plan 15 June 4, 2019 Regular Meeting Council Holds evening workshops to review and discuss Preliminary Budget including General Fund and Enterprise Funds programs, CIP projects, and rates 16 June 18, 2019 Regular Meeting Council Holds continued Financial Plan review and adopts budget and rates. 17 June 25, 2019 Council If required, holds special meeting to continue review and adopt budget Packet Pg. 106 Item 11