HomeMy WebLinkAbout04-16-2019 Item 13, Strategic Budget Direction and Major City Goal Work for 2019-21 Financial PlanDepartment Name: Finance
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April 16, 2019
Business Item
120 minutes
FROM: Derek Johnson, City Manager
Prepared By: Brigitte Elke, Finance Director
SUBJECT: STRATEGIC BUDGET DIRECTION AND MAJOR CITY GOAL WORK
PROGRAMS FOR THE 2019-21 FINANCIAL PLAN
RECOMMENDATION
1.Review updated General Fund and Enterprise Funds’ Five-Year Fiscal Forecasts
(Attachment A); and
2.Review and provide guidance to the City Manager regarding proposed Major City Goal
work programs (Attachment B); and
3.Review and provide guidance to the City Manager regarding the recommended use and
allocation of one-time and ongoing budget resources to fund proposed Significant Operating
Budget Changes (SOBCs) (Attachment C), the Capita l Improvement Plan (CIP), Fleet
Replacement Fund, Information Technology (IT) Replacement Fund, Major Facility
Replacement Fund, and the Infrastructure Investment Fund (Attachment D);
4.Review and provide guidance to the recommendation from the Revenue Enha ncement
Oversight Commission as to the use of the Local Revenue Measure revenue (Attachment E);
and
5.Approve a policy for the funding of an ongoing public safety equipment replacement
project; a change to the Insurance Fund policy; and a policy pertaining t o Building Permit
Plan Check Services; and
6.Receive a status update on the CalPERS unfunded liability and the City’s current pay-down
scheduled based on its implemented Fiscal Health Response Plan (FHRP); and
7.Adopt a Resolution defining a list of projects funded by SB-1 (The Road Repair and
Accountability Act of 2017) for Fiscal Year FY 2019-20 (Attachment F).
REPORT-IN-BRIEF
The City of San Luis Obispo’s two-year budget approach involves the community in its goal
setting process, emphasizes long-range financial planning, and supports effective program
management. The Strategic Budget Direction is a critical next step in the development of the
two-year Financial Plan for all City’s funds (General, Water, Sewer, Parking and Transit Funds)
based on the highest priorities determined through the Council Goal-Setting process. The
primary purpose of Strategic Budget Direction is for the Council to give direction on 1) Major
City Goal Work Programs 2) Significant Operating Budget Changes (SOBCs), 3) Capital
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Improvement Plan (CIP), 4) Fleet Replacement Fund 5) IT Replacement Fund, and 6) Major
Facility Replacement Fund.
This critical juncture affords the City Council an early opportunity to review these key Financial
Plan allocations and proposed work programs to accomplish Major City Goals established by the
City Council in February 2019. Strategic Budget Direction additionally gives the City Council an
opportunity to provide direction on any changes to refine the work programs and resource
allocations to fully achieve the Council’s desired outcomes for the 2019-21 Financial Plan.
This report also provides a fiscal forecast and the City’s financial position under which the Major
City Goals and the City’s core services, including its capital improvement plan, will be
implemented. It also provides a five-year outlook on the City’s Fiscal Health Response Plan, that
reflects the work undertaken to confront the City’s pension obligation. The forecast incorporates
all financial appropriations to fully operate the City and implement Major City Goals and CIP
along with the budget change requests (SOBCs) to fulfill the work programs and projects.
Within the report, staff has summarized findings and recommendations for Council to review in
contemplating the Strategic Budget Direction for the development of the 2019-21 Financial Plan.
The attachments to this report are intended to provide even further detail on each topic. The
Major Sections covered are:
1. Major City Goals (MCG). Proposed work programs for MCGs including resource
allocations;
2. Financial Forecasts. The City’s long-term financial outlook including an updated
five-year forecast;
3. Policy Change. Recommended policy changes or amendments for long-term fiscal
health;
4. Significant Operating Budget Changes (SOBC). Proposed SOBCs for optimal
service and Major City Goal work program delivery including its enterprise funds;
5. Capital Improvement Plan (CIP). Five-Year CIP Projects (Capital, Fleet, Facilities,
and IT) for all funds including projects funded through the Local Revenue Measure;
6. Enterprise Funds. The four Enterprise Funds’ long-term forecasts and work
programs.
DISCUSSION
1. MAJOR CITY GOALS AND WORK PROGRAMS
The development of the two -year financial plan began in September 2018 and included
numerous informational sessions with the Community and Council to “set the stage”. Extensive
public engagement included a community survey, outreach to community groups, and a well-
attended Community Forum. These efforts resulted in direction and feedback from the City
Council that shaped Major City Goal priorities. Based on the input and feedback received, the
Council met on February 4, 2019, and after thoughtful deliberation, the Council selected five
goals and gave direction to staff to establish appropriate work programs to achieve these defined
goals. Each of the five goals was to be crafted through the lens of the following Vision Statement
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and each work program was endeavored to leverage the synergies and nexus between each
respective goal.
City Council Vision for its 2019-21 Major City Goals
The City of San Luis Obispo is a dynamic community embracing its future while respecting its
past with core values of civility, sustainability, diversity, inclusivity, regionalism, partnership,
and resiliency.
Work Programs
The five major city goal work programs identify the fiscal resources for programmatic and
capital efforts to achieve the recommended milestones within each goal. The five goals are
largely a continuation along the trajectory of previous Council goals established during the last
financial plan. However, each work program has been uniquely crafted to respond to discrete
direction while continuing efforts that span multiple financial plans.
Council review is now requested to ensure that staff’s proposed work progr ams appropriately
fulfill the Council’s vision for the established goals over the next two years.
1. Housing.
Facilitate the production of housing with an update of the Housing Element, including an
emphasis on affordable housing (including unhoused people) and workforce housing
through the lens of climate action and regionalism.
a. Housing Work Program Summary
The proposed approach to this Major City Goal identified tasks and resources to facilitate
the Community’s current and future housing and inclusionary priorities, goals, and
values. Those tasks are organized within two distinct categories: 1) Housing Major City
Goal (MCG) Priorities and 2) Ongoing Housing Production Programs. The MCG
Priorities are further organized into a hierarchy of three sub-categories: 1) Core Priorities,
2) Secondary Priorities and 3) Tertiary Priorities. The purpose of this organizational
structure is to ensure:
1. Core tasks are completed prior to State and City deadlines;
2. Adequate resources are allocated to the identified tasks, including staffing support
and workload prioritization; and
3. Objectives described in the Goal Statement are fulfilled.
The most significant task in this work program is the Housing Element update, which
will be a multi-departmental effort that includes policies to facilitate the production of
diverse housing types, for the inclusion of housing production that supports the needs of
diverse households (i.e., including but not limited to: extremely low income, elderly,
large families, disabled persons, unhoused persons, students, single room occupancy,
veterans, and the “missing middle” workforce) within San Luis Obispo. The Housing
Element update is also a crucial strategic implementation tool for addressing important
changes to State housing law and climate adaptation/resiliency. A detailed description
with individual work efforts can be found beginning on page 1 of Attachment B.
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Lastly, the work program includes SOBC’s that achieve the prime directive of the MCG
which is to produce housing. The SOBC’s include adding engineering and other staffing
to facilitate the timely permitting of entitled projects and continue work on new
entitlements which advance housing projects.
b. Investment in Housing Major City Goal
2019-21 Financial Plan
Major City Goals Operating Budget Capital Plan
Existing Resources $344,982 $0
New Investments $1,054,972 $0
Total $1,399,954 $0
2. Fiscal Sustainability and Responsibility
Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on
efficiencies, strategic economic development, unfunded liabilities, and infrastructure
financing (Funding the Future).
a. Fiscal Sustainability and Responsibility Work Program Summary
The proposed approach to this Major City Goal continues a multi-faceted approach to
protect t he City’s fiscal health. It mirrors the City’s Fiscal Health Response plan and
looks to increased revenue through economic development efforts and diversification,
and thoughtful reorganizations to increase operational efficiencies and best prepare the
organization for the future.
It seeks to identity barriers to diversity and inclusion within the organizational systems
and pursues best management practices for cost containment and improved budgeting.
The goal takes a long-term look at protecting the City against financial volatility and
incorporates efforts in climate action and emergency preparedness as well as long term
capital investment. The work program is organized into 1) “Fiscal Health”, 2)
“Organizational Effectiveness”, 3) “Economic Development”, 4) “Emergency
Preparedness”, and 5) “Infrastructure Financing”. A detailed description with individual
work efforts can be found beginning on page 23 of Attachment B
b. Investment in Fiscal Sustainability and Responsibility
2019-21 Financial Plan
Major City Goals Operating Budget Capital Plan
Existing Resources $1,789,996 $-
New Investments $12,207,808 $-
Total $13,997,804 $-
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3. Sustainable Transportation
Enhance accessible regional transit, bicycle, and pedestrian mobility to promote a
transition to a car-free or shared-car lifestyle and to reduce greenhouse gases.
a. Sustainable Transportation Work Program Summary
The proposed approach to this Major City Goal identifies tasks and resources to advance
the priorities, goals, and values associated with accessible and sustainable transportation.
The tasks are organized by four topical areas: 1) “Safe and Enhanced Walking and
Biking”; 2) “Infrastructure”, 3) “Transit Services” And 4) “New Trends, Technological
Opportunities and Community Education”. A series of capital projects are proposed that
focus on maintenance and new construction to support safe and efficient pedestrian, bike,
and vehicular mobility. With transit services, in addition to focused efforts to increase
ridership, electric vehicles are being researched and identified for potential replacement
of aging resources. Outcomes from this Goal include, but are not limited to, beginning
construction on the Prado Road Interchange and Prado Creek Bridge, completion of
Phase 1 and 2 of the Anho lm Neighborhood Greenway, and significant progress towards
the City’s modal split goals, with increased volumes of bicycle, pedestrian, and transit
users. The full Work Program is available on page 16 of Attachment B.
b. Investment in Sustainable Transpo rtation
2019-21 Financial Plan
Major City Goals Operating Budget Capital Plan
Existing Resources $1,291,500 $5,735,894
New Investments incl Grants $0 $48,644,054
Total $1,291,500 $54,379,948
4. Climate Action
In response to the climate crisis, continue to update and implement the Climate Action
Plan for carbon neutrality, including preservation and enhancement of our open space
and urban forest and planning for resilience.
a. Climate Action Work Program Summary
The Climate Action Major City Goal addresses the cause of climate change through
greenhouse gas emissions (GHG) reductions and prepares for the growing impacts of
climate change so that the City can adapt, become resilient, and thrive in a rapidly
changing climate. Put simply, the overarching vision is to Act, Adapt, and Thrive.
The work plan seeks to actively create opportunity and ensure the community remains a
dynamic, high quality place to live and work, while protecting and stewarding the natural
environment within and surrounding the City. The work program commits to the values of
civility, sustainability, diversity and inclusivity, regionalism and partnership, and
resiliency.
The proposed scope of work: 1) “Builds Organizational and Community Capacity and
Processes for Substantial, Sustained, And Effective Climate Action”; 2) “Implements
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Priority Climate Action Plan Measures to Lay the Foundation for Achieving Carbon
Neutrality By 2035”, And 3) “Assesses, Plans, And Implements Measures to Enhance the
Community’s Resilience to The Impact of Climate Change”. The work will be coordinated
across Major City Goals and Departments to ensure successful implementation. The full
Work Program is available on page 9 of Attachment B.
b. Investment in Climate Action
2019-21 Financial Plan
Major City Goals Operating Budget Capital Plan
Existing Resources $265,000 $0
New Investments $433,000 $763,797
Utilities Fund $0 $15,146,000
Other Sources (approved
and pending grant funding)
$768,500 $0
Total $1,466,500 $15,909,797
5. Downtown Vitality
Support the economic and cultural heart of the City with attention to safety, maintenance,
infrastructure, and amenities.
a. Downtown Vitality Work Program Summary
The Major City Goal of Downtown Vitality is responsive to the community’s desire for
the continuous care and preservation of what is often referred to as the “heart of the City”.
Known for its rich history and as a destination for locals and travelers, our downtown
continues to evolve, and the work program proactively addresses its current and futu re
needs. An area of investment in the plan also addresses the needs of local businesses and
tasks have been identified in order to play a supportive role in helping businesses prosper.
The proposed work program reflects the core areas of attention identified in the Goal
Statement – 1) “Safety”, 2) “Maintenance”, 3) “Infrastructure and Amenities”, and 4)
“Strategic Economic Initiatives That Support A Beautiful, Vibrant Downtown.”
The installation of new infrastructure and ongoing maintenance will ensure t hat we are
taking care of “the bones” of the downtown and providing for not only its smooth
functionality, but also an elevated level of beautification as well.
Many initiatives will be successfully achieved in collaboration with Downtown SLO, our
City’s business improvement association, our Tourism Business Improvement District and
by continuing to interface with other cultural and business-centric nonprofit organizations.
The update to the City’s Economic Development Strategic Plan and the potential cre ation
of new programs that support downtown properties are other exciting tasks included in the
work plan. The full Work Program is available on page 29 of Attachment B.
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b. Investment in Downtown Vitality
2019-21 Financial Plan
Major City Goals Operating Budget Capital Plan
Existing Resources $1,076,040 $463,000
New Investments $245,400 $40,082,000
Total $1,321,440 $40,545,000
Overall Investment in all Major City Goals for 2019-21
Combined, the investment over the next two years for the five defined Major City Goals are as
follows:
2019-21 Financial Plan
Major City Goals Operating Budget Capital Plan
Existing Resources $4,767,518 $21,344,894
New Investments $13,941,180 $89,489,851
Other Sources $768,500
Total $19,477,198 $110,834,745
2. THE CITY’S LONG-TERM FISCAL OUTLOOK
When the City adopted the 2017-19 Financial Plan, it was confronted with its expenditures
beginning to outpace projected revenue. The primary drivers are unfunded pension liabilities and
are a significant financial o bstacle shared by the other 3,000-member CalPERS agencies. Factors
related to the increased costs to the agencies were changes in the pension system driven by life
expectancy, the baby boomer generation retiring, enormous investment losses from the great
recession and the general reduction of active workers compared to retirees. Together with the
new reality of the market’s rate of return, CalPERS had to change the way it collected
contributions from member agencies and subsequently;
1. Prescribed a 30-year term for payment of the unfunded liability
2. Lowered its expected rate of return from 7.5% to 7% over a three-year period.
In response to the emerging forecast, the City Council adopted and then activated its Financial
Health Response Plan (FHRP) and with t he 2018-19 Financial Plan supplement implemented a
three-year strategy to 1) Do Business Differently and Reduce Operating Expenditures 2) Secure
New Revenues and 3) Negotiate Employee Concessions. This was done in a comprehensive
effort to align expenditures and revenues in a manner which leveraged the City’s resources to
reduce its long-term pension obligations while keeping its annual budget balanced. The FHRP
set out to reduce expenditures and seek new revenue streams to close a $7.5 million gap in the
General Fund and $1.4 million in the four Enterprise Funds. The upcoming Financial Plan will
mark years two and three of the plan. The FHRP strategies of developing new revenue streams
and lowering forecasted expenditures through employee concessions, thoug htful reorganizations,
new ways of doing business and operating expenditure savings are projected to yield the desired
outcome. Consistent with the FHRP, no service reductions are proposed at this time.
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CalPERS unfunded liability and the City’s Approach
Through the City’s Fiscal Health Response Plan, the City Council committed to an aggressive
pay down of the City’s pension obligation. In addition, it approved the release of a request for
proposal to establish a 115 Pension Trust Fund. Given the payments now integrated in the long-
term forecast and considered by the City’s pension actuarial, the City is on track to pay-off the
unfunded liability in 20 years and with the backing of the trust fund can withstand a lowering of
the rate of return to 6.5%. This forecast is based on the last reports from CalPERS and expected
rate of return for this fiscal year, the further lowering of the discount rate is becoming more and
more a near term possibility1. In order to maintain the pay-off by 2038, the City now forecasts
the following payments in addition to the annually scheduled payments to CalPERS:
1. Additional payments toward the unfunded liability principal of $32 million by FY 2028 -
29. The first payment of $4.2 million was made after approval of the Mid -Year report.
General Fund Enterprise Funds Total Payments
$28.4 million $3.6 million $32 million
2. $13.8 million in Trust Fund allocations by FY 2024-25. The 115 Trust Fund allocations
will be invested and earn interest. Once a plan administrator is contracted t hrough the
RFP process, expected rate of returns will be reported out. Long -term investments of
such trust funds have yielded between five to eight percent.
General Fund Enterprise Funds Total Investment
$12.2 million $1.6 million $13.8 million
These accomplishments would not have been possible without Council leadership, community
support and employee ingenuity to explore doing business differently. Employee concessions
that will increase the employee contribution toward the pension obligation are also a significant
factor and the above forecasts will only be realized with all bargaining units agreeing to
continued cost sharing. Together with the pension reform initiated by the State through the 2013
California Public Employees’ Pension Reform Act (PEPRA) that is showing quicker results than
previously anticipated, the assumptions for normal cost of CalPERS pension obligations result in
$1 million savings from previous long-term forecasts.
General Five-Year Fiscal Forecast
1. General Fund
Staff presented the General Fund Five-Year Fiscal Forecast in conjunction with the Fiscal Health
Response Plan (FHRP) as part of the 2018-2019 Supplemental Budget. The forecast was based
on the best available econometrics. Since adoption, updated information has bee n used to
analyze and then revise the forecast. Information sources include the Central Coast Economic
1 CalPERS has adopted a plan to gradually reduce the discount rate from 7.5% to 7%. CalPERS has indicated that
there are currently no plans to reduce it further, though some actuaries project that additional discount rate
adjustments will be required to align investment rate of returns with prospective market projections. Staff has taken
a more conservative and likely more realistic viewpoint of the downward pressures that CalPERS will be forced to
reckon with moving forward.
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Forecast, UCLA Anderson California Forecast, HDL Sales Tax Forecasts, County of SLO
Property Tax Forecasts, Southern California Lodging Forecast, and no rmalized and unfunded
CalPERS liability Forecasts based on demographic changes and additional projected payments.
Lastly, the forecast incorporates actual and audited revenues and expenditures from the 2017 -
2018 fiscal year.
The results of the updated fo recast are cautionary and encouraging. The forecast shows that the
City can maintain a balanced budget if it 1) focuses on core services and investments in Major
City Goal Work Programs, 2) maintains existing infrastructure, 3) prudently uses one -time
dollars to prefund CalPERS and/or a 115 Pension Trust and 4) negotiates cost sharing with
remaining bargaining groups. This also means that the City will be able to pay down its $150
million unfunded pension in 20 years, rather than over 30 years, avoiding a pproximately $19
million in extra interest costs after considering loss of investment gains. The City’s actuary has
observed that if the forecast holds that the City could be a model for other agencies to follow
about how to proactively manage and reduce unfunded liabilities.
The forecast is based on the 2nd and 3rd years of the FHRP as operating budgets were also
evaluated over the past five years and were not increased. The only increases afforded were
those as a result of contractual obligations and/o r utility (i.e. electric power) or cost increases
outside of the Department’s control (i.e. water treatment chemicals).
Other key factors in the forecast include:
1) Increased focus on maintenance in CIP funding;
2) Continuation of Local Revenue Measure beyond the expiration of 2023;
3) Funding partnership projects (AB 1600) and regional efforts to support housing in the
City;
4) Increase of CIP funding of $1.0 million in 2022;
5) Thoughtful reorganizations and service delivery efficiencies will continue to be
implemented with the Organization of the Future;
6) Paydown of CalPERS unfunded liabilities over 20-years with prepayments to
CalPERS and the 115 Pension Trust;
7) Adjustments to Cannabis Revenue in-line with anticipated business openings;
8) Updated revenue and expenditure projections based on actual and audited 2017-18
fiscal year;
9) Thorough review of all budget accounts and allocation of funds to fund public safety
related one-time SOBCs;
10) Accelerated turnover of “Classic” to “PEPRA” employees that is reducing normalized
CalPERS pension costs.
The combination of these factors shows a forecast that enables the City to 1) prepay unfunded
CalPERS liabilities, 2) improve CIP maintenance funding, and 3) fund SOBCs that advance
Major City Goals and address underfunded core serv ices. The updated Five-Year Forecast is
shown as Attachment A.
3. RECOMMENDED POLICY CHANGES FOR LONG-TERM FISCAL HEALTH
The City has developed solid budget policies to guide its ongoing financial processes. The
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policies are constantly reviewed for best practices, continued practical application, and are
amended when emerging issues warrant. Three topics have already surfaced, and staff
recommends 1) one amendment to an existing policy, 2) the implementation of a new policy to
retain budget for equipment replacement funding, and 3) a new policy for the funding of
Building Permit Plan Check Services.
1. Insurance Benefit Fund. With the 2017-19 Financial Plan, the City established an
Insurance Benefit Fund. It was designed to maintain funding for liability insurance and
related claims. The annual liability and workers compensation insurance payments
together with an encumbrance for claim payments are currently maintained in the Human
Resources program. In order to smooth the ebbs and flows in insurance and claims
payments, staff recommends keeping all related funding in the insurance benefit trust
fund, so fund balance can be separately maintained and used for insurance-related
expenditures. This would move the funding from the operating program expenditures b y
fund transfer to the insurance benefit fund.
Additionally, staff recommends changing the name to Insurance Fund to better reflect the
purpose of the funding maintained in the fund.
2. Essential Safety Equipment. Several City programs including Police and Fire are
required to maintain and replace personal protective equipment such as turn-outs, ballistic
helmets, body armor, shields, self-contained breathing apparatus, as well as first
responder medical equipment carried on fire trucks such as AEDs and cardio monitors.
All the equipment has an expiration date to keep it properly working. Historically, the
requests to replace this equipment were completed with available one-time General
Funds. This led to large requests every few years that at times were difficult to finance
and resulted in trade-offs, particularly to the CIP program. Staff therefore recommends
beginning to budget annual amortized amounts to be set aside in a project account, so the
equipment can be replaced at required replacement interva ls. This would smooth out the
annual contribution and secure funding when needed. The benefit is that essential
equipment, which must be replaced, is no longer competing for limited funding that
would otherwise be appropriated for Major City Goals and other core service priorities.
Staff recommends the following addition to Fund Balance and Reserves policies under
letter K:
Essential Safety Equipment Funding. The City will carry forward year-end project
balance designated for essential safety equipment indefinitely.
Since there is an immediate need to catch-up with required replacements, staff
recommends using $1.15 million of the liability encumbrance balance to be used to fund
the first three years of the new replacement program (2019 -2022). Afterwards, the annual
contribution amounts to approximately $210,000 and would be included in the annual
budget request and appropriation.
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3. Building Permit Plan Check Services. The City of San Luis Obispo has traditionally
provided building permit plan check services with City employees “in house.” However,
over the past several years, the use of consultants to perform this function has increased
largely due to workload driven by development activities. This has provided the
management team in Community Development with an opportunity to compare and
evaluate the cost and efficacy of the different methods of performing the plan check
service. The results of this analysis show that consultants are able to provide plan check
services at a lower cost and with higher productivity rates than in-house staff. Based on
this conclusion, the Community Development Department is moving forward with plans
to accomplish most of its building permit plan check services through the use of
consultant services. Over-the-counter plan checks along with plan check services for
certain commercial “tenant improvement” permits and minor residential permits will still
be conducted in-house to preserve the City’s ability to offer the quickest turn-around time
for small projects. Permits for major construction projects, such as new commercial
buildings and housing tracts, will be performed by one of the City’s on-call consultants.
The industry standard cost for a consultant to perform building permit plan check
services is based on a percentage (65%) of the cost that the City charges its customers.
This is a unique arrangement that ensures 100% cost recovery for the service, including
administration and overhead. Based on this contracted price, staff is recommending a new
budget policy that would allow the Finance Director to appropriate revenues to pay for
this cost directly from the fee revenue collected. Staff has determined that this is a more
effective way to cover this cost, which fluctuates from year to year depending on the
number and sco pe of building permit applications received. The proposed policy follows.
Budget and Fiscal Policies – User Fee Cost Recovery Goals – H. Development Review
Programs:
4. Building Permit Plan Check Services – The City of San Luis Obispo offers building
permit plan check services through consultants at a set price, not to exceed 65% of
the City’s fee for the service. Building Permit Plan Check Services are offered by the
City on a 100% cost-recovery basis, and the service is provided after the fee is paid
in full. As a result, the Finance Director is authorized to make appropriations from
the related revenue account to cover the cost of the services provided.
This new policy will ensure 100% cost recovery for these activities and will also ensure
that only the amount of funding necessary to perform the service is allocated to the
Community Development Department budget. This solves a problem where in years past
either too much or too little funding was allocated to this function, requiring budget
adjustments thro ugh a less efficient process. The unique nature of the City’s contracts
with its building permit plan check consultants allows the City to manage the cost in a
more efficient and effective manner than other services provided via consultant contracts.
4. SIGNIFICANT OPERATING BUDGET CHANGES
As a cost control measure, the City requires increases to individual budget line items in the
programs above $7,500 to be justified in a request for funding. Under the current fiscal
circumstance, the requests were limited to the following request criteria:
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A. Essential for the protection of health and safety.
B. Needed for the advancement of Major City Goals
C. Allowing for future cost reductions through reorganizations
The City’s Financial Plan Steering Committee reviewed t he requests and recommends the
following SOBCs for integration in the 2019-21 Financial Plan.
Significant Operating Budget Requests – Financial Plan Impact
Applicable MCG Title One-Time Funding
Source 2019-20 2020-21
Fiscal Sustainability Motion Project – Long-term
support $51,000 $24,000 General
Fund-CAP
Climate Action Carbon Farming Pilot Program $35,000 General Fund
Climate Action Sustainability Internship Program $15,000 $15,000 General Fund
Climate Action Transportation Electrification SP $10,000 General Fund
Downtown Vitality “Shop Local” program $30,000 SB 1090
Climate Action Urban Forest Master Plan $35,000 General Fund
Fiscal Sustainability Business attraction & retention $70,000 SB1090
Climate Action Solid Waste Plan $25,000 General Fund
Climate Action Building Electrification Program $50,000 General Fund
Fiscal Sustainability Contract Services $150,000 $150,000 General Fund
Housing Housing MCG Resources $112,760 $112,760 General Fund
Housing Contract Permit Technician $70,650 General Fund
Housing Temp. Engineering Consultant $75,000 General Fund
Housing Housing MCG Resources $99,037 $99,037 General Fund
Housing Temporary Civil Engineer $45,824 General Fund
Housing Communications Consultant $25,000 $25,000 General Fund
Housing Housing MCG Intern $12,000 $12,000 General Fund
Housing Diversity and Inclusion $20,000 $20,000 General Fund
Fiscal Sustainability Cannabis Detective Equipment $25,500 Cannabis
Fees
Downtown Vitality DT Sergeant & Field Technician $6,100 GST LEASE
Total Ask $886,771 $533,897
Revenue Offset SB1090 $100,000
Parking Fund $6,100
Total Investment $786,771 $527,797
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Significant Operating Budget Requests – Ongoing Financial Impact
Applicable MCG Title Ongoing Funding
Source 2019-20 2020-21
Fiscal Sustainability Office 365 $139,000 $181,000 General Fund
Fiscal Sustainability IT Reorganization $- $- OpEx
Savings
Fiscal Sustainability Increase in commu nity outreach $30,000 $30,000 General Fund
Fiscal Sustainability Property Based Improvement
Dist. $62,233 $65,124 General Fund
Climate Action Civic Spark Fellowship
Program $55,000 $53,000 General Fund
Fiscal Sustainability Mgmt. Fellowship Program $82,500 $82,500 General Fund
Housing Building Permit Plan Check Policy
Change
Housing Housing Trust Fund Award $40,000 $40,000 AHF
Housing Housing Coordinator $(61,177) $(61,177) Net savings
Housing Analyst – Infrastructure
Financing $125,000 $128,000 DA Fees
Fiscal Sustainability Recruit Academy OT $32,000 General Fund
Fiscal Sustainability Organization of the Future $225,000 $225,000 General
Fund-CAP
Fiscal Sustainability Online non-emergency
reporting $13,600 $13,600 General Fund
Fiscal Sustainability Cannabis Detective &
Contingency $309,682 $395,942 Cannabis
Fees
Downtown Vitality DT Sergeant & Field
Technician $227,695 $227,695 GST LEASE
Climate Action Urban Forest $30,000 $30,000 General Fund
Fiscal Sustainability SLOCOG Fees $9,804 $9,804 General Fund
Total Request $1,288,127 $1,454,498
Revenue Offset Parking Fund $227,695 $227,695
Development Administration $105,000 $108,000
AHF $40,000 $40,000
Total Request $915,432 $1,078,803
*Property based improvement district
Efforts to Reduce Liability
There were additional requests for funding that pertained to lowering the City’s exposure to
liability claims. Since the Human Resources Department currently has funding left in the
encumbrance for liability insurance and related claims, staff recommends using this funding for
the requests fitting within the intended use. If approved, the encumbrance would be released, and
the funding distributed according to the requests below:
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2019-20 2020-21
Fire Training Pilot Program 40,000$ 18,000$
Emergency Mgmt 60,000$ 60,000$
Homeless Camp Clean-up 40,000$ 40,000$
Urban Forest -Contract Arborist 95,000$ 95,000$
Safety Element Update Intern 12,000$ 12,000$
Stormwater Business Plan 20,000$
Swim Center Equipment 7,500$ 7,500$
Total 274,500$ 232,500$
5. CAPITAL IMPROVEMENT PLAN
Capital project completion is one of the primary functions of local government, and, one of the
means by which the City meets community desires and provides the infrastructure required for
economic vitality, neighborhood wellness, housing, transportation, pu blic safety and other
amenities. Therefore, city staff engage in a rigorous ranking and review process to develop a
Capital Improvement Project Plan for Council consideration that both aligns with MCG’s and
addresses deferred maintenance needs.
Through t he Capital Improvement Program (CIP), the City systematically plans, schedules, and
finances capital projects to ensure cost -effectiveness and conformance with established policies.
With each two-year Financial Plan, the City prepares five-year CIP program recommendations
for Council approval. Even though only the first two years are funded within the Financial Plan,
five-year planning is a best practice and is recommended to achieve objectives of the Capital
Improvement Program. Comprehensive policies governing the development and management of
the CIP are set forth in the fiscal policies. All the City’s construction projects and equipment
purchases costing $25,000 or more are included in the Capital Improvement Plan. The
recommended projects for the 2019-2021 Financial Plan are provided in Attachment D.
To assist the City Manager in developing the recommended CIP for the 2019 -21 Financial Plan,
a designated CIP Review Committee evaluated all departmental requests.
Based on prior Council direction and public input regarding the importance of maintaining
existing infrastructure, City staff puts all project requests in the following three categories.
1. Annual Asset Maintenance
2. Asset Replacement
3. New Assets
In general, projects that maintain existing infrastru cture are ranked ahead of asset replacement
projects, and, asset replacement projects are ranked ahead of building new assets. In addition, it
is important to note that generally New Assets are related to Major Council Goals or
development areas. This rank ing is a general guideline. Other factors in project prioritization
include:
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1. Is it a project the City has promised through a Development Agreement or other binding
commitment?
2. Does the project meet a Major Council Goal?
3. Is the project mandated by the stat e or federal government?
4. Is there significant outside funding for the project?
5. Is it necessary to address an immediate public health or safety concern that cannot be
deferred?
The General Fund Capital Budget is comprised of four components.
1. General Capital Outlay. Funds maintenance, replacement and new projects such as
roads, parks, sidewalks, play equipment, open space and other assets.
2. Major Facility Replacement. Funds maintenance costs of existing city buildings. In the
future with a potential new fu nding source this could be how the city accounts for Major
Facility Replacement such as Police Headquarters.
3. IT Replacement Fund. Funds maintenance and replacement of critical information
technology. Council will note there are increased allocations in th is Fund for this
financial plan as previously deferred needs exceeded existing resources.
4. Fleet Replacement. Funds replacement of existing city vehicles. In prior Financial Plan
discussions, the City Council directed staff to review existing Fleet Replacement policies
with a goal of extending the life of the city fleet. This work has been concluded and is
reflected in the summary below:
Vehicle Replacement Guidelines Changed to Extend Fleet Life
General Guideline Change to Extend Fleet Life
Years in Service and Total
Mileage
Construction Equipment increased from 12 years to 15 or 20
years depending on specific equipment type which relates to
the fact that newer manufactured vehicles generally last
longer.
General Purpose Vehicles increased from 8, 11 and 12 years
to 15 years; and from 60,000 and 90,000 miles to 100,000
miles depending on specific equipment type
Police Vehicles increased from 80,000 miles to 100,000 miles
Specialty Vehicles increased from 8, 10 and 12 years to 12,
15 and 20 years
Engine Hours Added as criteria to Police vehicles and others subject to high
idling needs for operational purposes. Engine Hours can be
calculated with new Fleet Management system and is a more
accurate reflection of engine wear. In addition, Fleet is adding
anti-idling equipment to vehicles to reduce unnecessary idling
Air Quality regulations Threshold criteria is that vehicles meet CARB (California Air
Resources Board) requirements
Analysis of past and
projected maintenance costs
Fleet management system enables Fleet manager to assess
past and projected costs to maintain the vehicle – and that
amount can be compared with the cost of replacement and
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such calculation will be a factor to determine replacement
timing
Emission reductions Staff will consider low emission, hybrid, plug-in electric and
full electric vehicles for vehicle replacements. Renewable
diesel is utilized in all general fleet diesel powered equipment
and vehicles.
There are several fundamental components in the proposed General Fund Capital Program.
Fundamental Components of the proposed General Fund Capital Program.
1. SB 1 Funding. SB 1 (Road Repair and Accountability Act of 2017) is included in the
Capital Program. SB 1 provides over $1.17 and $1.33 million dollars in the first two
years of the Financial Plan. SB1 provides funding for necessary repairs and maintenance
to roads, bridges, and transportation improvement projects.
2. Infrastructure Investment Fund. The Infrastructure Investment Fund, initiated with the
2015-17 Financial Plan, is being utilized to fund the General Fund contribution to
projects required in adopted Development Agreements and projected to be constructed
during this Financial Plan period.
3. SB 1090 Allocation. There is an assumption of $1.72 million in SB 1090 Funds a llocated
to the Infrastructure Investment Fund to supplement earlier General Fund allocations to
the Infrastructure Investment Fund
4. Fleet Replacement. The Fleet replacement program follows the guidance noted above
with emphasis and analysis of replacement vehicles on a longer cycle.
5. Three Areas of Focus for the 2019-21 CIP. There was emphasis on funding the capital
projects form one of the following three areas:
a. Annual Maintenance of Existing Assets
b. Major City Goal projects.
c. Projects Required to be constructed consistent with approved Development
Agreement.
SB 1 Funding and Council confirmation of the project list
As noted above, the City of San Luis Obispo, similar to every city and county in California,
receives an annual allocation from SB 1 for street and road maintenance. This allocation is based
on the city’s population. SB 1, (The Road Repair and Accountability Act of 2017), provides
approximately $1 M per year for maintenance of streets, roads and other transportation
infrastructure. In this Financial Plan, SB 1 is proposed to fund Broad Street Paving (from Tank
Farm to Farmhouse Lane), and Anholm Greenway Transportation improvements. The state
requires an annual resolution adopting the project list for each budget year. The proposed actions
for this Council Report include the appropriate resolution. Passage of this resolution enables the
city to maintain eligibility to receive SB 1 funding. The recommended Council action #7 above
is the appropriate resolution.
Highlights of the Preliminary Five-Year Capital Improvement Program
The following tables highlight preliminary five-year recommendations for the 2019-24 Capital
Improvement Program. The Preliminary Financial Plan will include recommended
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appropriations for the first two fiscal years only. The tables below include:
1. General Capital Outlay
2. Major Facility Replacement
3. IT Replacement
4. Fleet Replacement
5. Infrastructure Investment Fund (this is the first Financial Plan where project expenditures
are shown in this fund, and reflects allocations to prior ity projects in approved
Development Agreements)
CAPITAL IMPROVEMENT PROJECT PLAN 2019-24
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
FY
2023-24
Total
Capital
Outlay $6,056,797 $16,154,054 $6,578,224 $47,773,902 $15,842,314 $92,405,291
Major
Facilities $516,210 $524,243 $542,727 $541,532 $552,226 $2,666,938
Fleet $515,000 $380,000 $696,000 $705,500 $670,000 $2,966,500
IT $884,703 $904,250 $502,473 $510,777 $520,864 $3,323,067
Infrastructure
Investment $987,750 $1,259,100 $388,000 $330,000 $- $2,964,850
Grand Total $8,960,460 $19,221,647 $8,707,424 $49,861,711 $17,585,404 $104,326,646
Staffing for Capital Project Delivery
If Council provides direction to proceed with the above General Fund project list (Attachment
D), as well as the Enterprise Fund Capital Projects noted in the summaries below, the City may
need additional engineering and project delivery staffing resources. Staff is currently analyzing
the project staff required to deliver the projects over both the two -year and the five-year time
horizon. While City staff is adequate to deliver the current capital program, additional funding
from SB 1 and SB 1090, and, increased Parking, Water and Sewer projects, may require
additional staffing. Currently this staffing is not reflected in the SOBC list above and will be
included in the June budget adoption documents pending Council direction on the proposed
Capital project list. If additional staff is required, staff will recommend funding sources that do
not jeopardize other proposed services, pro grams, or FHRP objectives. Such scenarios could
include contributions from the Enterprise Funds given their increased capital project delivery
needs.
LOCAL REVENUE MEASURE
The proposed 2019-21 Local Revenue Measure operating and capital outlay expenditu res
(Attachment E) were developed using input from the Community Forum, the Major City Goals
established by the City Council, updated revenue projections, the funding priorities developed
from the ballot language. On April 4, 2019, the Revenue Enhancement Oversight Commission
(REOC) met to review the proposed expenditures and recommended approval by the City
Council. Expenditures are broken into the following categories developed from the Local
Revenue Measure ballot language:
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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
9. Other Vital Services and Capital Projects
Previous input from the community and REOC has been to prioritize Local Revenue Measure
funds for capital investments and historically expenditures have been approximately 70% capital
and 30% operating. Operating program costs are a necessary part of implementing capital
projects. In addition, operating programs deliver essential services that align with Local Revenue
Measure priorities. As such, it would not be sustainable to allocate all Local Revenue Measure
dollars to capital projects without related operating program support to implement the projects.
As proposed, expenditures were budgeted 70% for capital and 30% for operating. The balance
of capital and operating costs for the 2019-21 Financial Plan are listed below:
Capital Expenditure
Percentage
Operating Expenditure
Percentage
FY 2019-20 71% - $5,574,867 29% - $2,237,989
FY 2020-21 70% - $5,545,397 30% - $2,369,931
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6. ENTERPRISE FUNDS – LONG-TERM FORECAST AND WORK PROGRAMS
Utilities Enterprise Funds: Water & Sewer
Today, managing a water ut ility is complex due to climate change and the large rainfall
variability that exists from year to year. During the most recent drought, the way the City
administers water and sewer services was critically assessed, and changes to the rate structure
were developed to assist with funding stability for these essential services.
The community of San Luis Obispo has done an outstanding job securing its water future. While
remaining ever-vigilant on that front, the knowledge obtained from the complete master planning
of the City’s water, wastewater, and recycled water infrastructure underscores the criticality of
further investments to address existing and future infrastructure needs.
Reduced revenues due to water conservation and reduced consumption related to the recent
drought (and the resultant compounding impacts) along with significant capital infrastructure
needs, required the City to re-evaluate how to structure revenues considering long-term
uncertainty. The adopted rate structure changes for residentia l users included a greater percent of
revenues collected through the fixed portion of the water rates while it increased the number of
tiers for residential water users from two to three. For multi-family, non-residential, and
irrigation customer classes, all water usage is now charged at a per unit cost associated with each
customer class with the fixed portion of the water rates based on meter size.
The change in rate structure was accompanied by a rate forecast projection through fiscal year
2022-23 for both water and wastewater utilities. Operation and maintenance expenses were
projected to increase at inflationary levels with no assumed changes to levels of service or
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anticipated extraordinary expenses.
Forecasted rate increases for water and sewer were presented as part of the 2018 rate study.
Water revenue adjustments of 5.5 percent in fiscal years 2019 -20 through 2022-23 and
wastewater revenue adjustments of 6 percent for 2019 -20 and 6.5 percent for 2020-23 were
needed to sustain necessary fund ing to maintain current service levels and capital improvements.
Staff is utilizing the most recent data available to explore opportunities to lessen rate increases.
The impact of these charges on the average residential customer using five units per month is
shown in the following tables.
Average Residential Water Customer
Monthly Bill Comparison (Five Units)
Existing 2018-19
Water Rate
Proposed Year
1 Water Rate
Proposed Year
2 Water Rate
Monthly Base Fee $ 20.61 $ 21.74 $ 22.94
Usage (five units): $ 29.50 $ 31.12 $ 32.83
Total Bill $ 50.11 $ 52.87 $ 55.77
Difference N/A $ 2.76 $ 2.91
Average Residential Sewer Customer
Monthly Bill Comparison (Five Units)
Existing 2018-19
Sewer Rate
Proposed Year
1 Sewer Rate
Proposed Year
2 Sewer Rate
Monthly Base Fee $ 18.69 $ 19.81 $ 21.10
Usage (five units): $ 39.25 $ 41.61 $ 44.31
Total Bill $ 57.94 $ 61.42 $ 65.41
Difference N/A $ 3.48 $ 3.99
Revenue Stability Test
While the abundant rainfall received to date this winter has been highly beneficial for the City’s
surface water reservoirs, it has resulted in a dramatic lowering of water consumption due to the
non-existent need for outdoor watering. As this is the time period used for calculating sewer
bills as well, this decrease in water use could result in a significant revenue decrease for both the
water and wastewater utilities. The upside to this scenario is that is has resulted in an ideal
situation in which to test t he effectiveness of the abovementioned change in rate structure which
was designed to ensure revenue stability.
The most recent water consumption data, along with the current rate structure, is currently being
analyzed to project any needed increases required for both funds. Once this analysis is
completed, it will become the basis of any future rate increase. Until evaluation of these results is
completed, the proposed rate increases are only tentative and should only be used for forecasting
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purposes.
Major Capital Projects and Programs in progress for Water and Sewer Funds
Addressing capital needs remains a high priority for the water and wastewater utilities. A robust
capital program based on master plan prioritization is proposed. Additionally, t he following
major work efforts remain in progress or will be completed during the 2019 -21 Financial Plan
period:
1. Water Resource Recovery Facility Bid solicitations for Water Resource Recovery
Facility (WRRF) will be obtained in 2019, and pending the r esults of the bid opening,
award will happen in 2019 and the construction will continue through 2023.
2. Water Energy Efficiency Project. The City will complete the Investment Grade
Audit 2, equivalent to 30 percent project design, and return to Council in July 2019 with a
recommendation on which proposed projects should move forward for final design and
construction.
3. Private Sewer Lateral Program. This Program is anticipated to be considered by
Council in Summer 2019. It will likely include rebates for lateral replacement, inspection
requirements, and an “offset program” with the goal of reducing the amount of
groundwater and rain water (inflow and infiltration) entering the City’s wastewater
collection system.
4. Groundwater Sustainability Agency. Compliance with the Sustainable
Groundwater Management Act (SGMA) requires the creation of a Groundwater
Sustainability Plan.
5. Design and Construction of Various Water and Sewer Line Projects.
Significant Operating Budget Changes to Water, Sewer, and Whale Rock Reservoir for
2019-21
The proposed budget for the Water and Sewer Utilities include a series of operating program
changes, summarized below, necessary to address one-time or ongoing changes in the City’s
Water, Sewer and Whale Rock Enterprise Fund s. Any additional costs expenses incurred as part
of a budget change has been included in the long-term forecast to ensure future fund viability.
2 An Investment Grade Audit is a thorough analysis of a facility for energy efficiency improvement purposes.
Through analysis of energy usage, electricity generation, equipment life-cycle, and optimization strategies, an audit
defines project scope and provides a baseline for energy conservation measures. These measures are then assessed
with a cost estimate to identify potential savings and improve efficiencies of the facility.
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Sewer Fund
Significant Operating Budget Changes One-Time Ongoing Funding Source
2019-20 2020-21 2019-20 2020-21
1 WRRF Maintenance $35,000 $19,225 $19,225 Sewer Fund
2 SCADA System $12,083 $12,083 Sewer Fund
3 Education & Training $8,750 $8,750 Sewer Fund
4 Chemicals $113,175 Sewer Fund
5 Electric Service - WRRF $10,000 $90,000 Sewer Fund
6 Overtime $13,000 Sewer Fund
7 Regulatory Fee $10,600 Sewer Fund
8 Various Studies $22,500 $22,500 Sewer Fund
9 Association Fees $12,470 $12,470 Sewer Fund
10 Property Based Improvement District $377 $395 Sewer Fund
Sewer Fund Subtotal $45,000 $213,775 $75,405 $88,028
Water Fund
Significant Operating Budget Changes One-Time Ongoing Funding Source
2019-20 2020-21 2019-20 2020-21
11 Nacimiento Operating Expenses $255,427 Water Fund
12 Salinas Reservoir – Pipeline Repair $1,892,092 Water Fund
13 Electric Service – Water Distribution $9,000 Water Fund
14 Machinery & Equipment $25,000 Water Fund
15 Treatment – TTHM $102,620 Water Fund
16 Chemicals $40,895 $41,391 Water Fund
17 Water Treatment Plant Equipment $10,000 $10,000 Water Fund
18 Electric Service – Water Treatment Plant $13,000 Water Fund
19 Water Treatment Plant Overtime $42,000 $42,000 Water Fund
20 Various Studies $37,550 $37,550 Water Fund
21 Property Based Improvement District $377 $395 Water Fund
Water Fund Subtotal $2,348,034 $51,391 $79,927 $79,550
Whale Rock Reservoir
Significant Operating Budget
Changes
One-Time Ongoing Funding Source
2019-20 2020-21 2019-20 2020-21
22 SWRCB Permit Fees $28,400 $28,400 Whale Rock
Fund
23 Electric Service Whale Rock $13,900 $8,900 Whale Rock
Fund
Whale Rock Fund Subtotal $42,300 $37,300
Total Investment $2,393,034 $265,166 $197,632 $205,878
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PARKING FUND
Working capital at the end of Fiscal Year 2017-18 for the Parking Fund was over $14,739,785
million. The fiscal outlook for the next five years shows the Parking Fund’s working capital
balance having significant reductions because of lower than expected revenues, the comp letion
of the Palm-Nipomo Parking Structure project (requiring annual debt services) and a series of
needed parking structure annual maintenance projects. Demand for long term parking spaces (10
hr. meters) has reduced significantly from two years ago when permits sold out each month. This
trend has reversed, and we are seeing lower than expected revenues as a result. Citation issuance
is down for the current year primarily due to a vacancy in the division. The current Parking Fund
forecast (FY 2017-19) anticipated operating the parking structures 24 hours a day to help capture
current revenue that is lost when we stop operations at night and open the gates. The new
forecast has deferred this implementation for a year in order to analyze this issue in the
upcoming update to the Parking Access and Management Plan to look at the wholistic effects of
pricing between the structures and street meters and make sure we are not implementing
counterintuitive costs.
Additionally, when/if the potential public/private parking structure project on the Higuera/Toro
intersection comes forward, the City will need a new revenue stream (i.e. in lieu parking fees) to
fund the project as existing rates that produce revenues are unlikely to be able to fund capital and
maintenance of this specific structure.
The forecast includes the funding the construction of the Palm-Nipomo Structure with
anticipated construction starting in 2020-21. Even without this major project, the annual working
capital balance would continue to show a reduction due to expenditures exceeding annual
revenue; primarily due to major reinvestments in rehabilitating the structures and extending their
useful lives.
Parking Fund Rate Structure
The forecast includes the Council approved multi-year plan to modify the rates for parking
meters, structures, and most parking permit types. These rate changes were set by Council at its
Parking Enterprise Fund review in 2017. The next scheduled change is set for July 1, 2019 when
the 10-Hour meter permit cost is set to increase to $80/month. This rate increase was set at a time
when these permits were being sold out each month due to high demand. Since that time,
demand for these permits have dropped and they are not as sought after as before. As a result,
expected revenues from the January 2018 increase in these permit rates has not been fully
achieved. Staff will be reviewing this issue to determine if it is beneficial going with the full
implementation of this rate change in July of this year is appropriate. Additionally, the adopted
rate increases include across the board changes in July 1,2020 that will increase revenues to help
accomplish the Palm – Nipomo Structure.
The current forecast includes additional rates changes that will be necessary to balance the
budget and deliver the necessary revenue to complete the Palm-Nipomo project and other CIP
requirements. Most notably will likely be the need to increase our fines and forfeitures across the
board by about 5% in FY 19-20 or FY 20-21. Additionally, it is anticipated that a system wide
rate increase in FY 2024 or FY 2025 will be needed to help offset costs. These two increases
have not yet been adopted by Council and staff will be returning as part of final budget adoption
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in June with recommendations on these issues.
Parking Rates
Currently Adopted Parking Rate
Changes
Effective
Jan.1, 2018
Proposed
effective
July 1, 2019
Proposed
effective
July 1, 2020
Parking Meters (hourly):
Tier 1 (Super Core) $ 1.75 $ 2.00
Tier 2 (Core) $ 1.50 $ 1.75
Tier 3 (10-hour meters) $ 1.00 $ 1.25
Tier 3 - 10 Hour Meter Permit $ 60.00 $ 80.001 $ 90.00
Parking Structures
Hourly/Daily Max: $1.25/$12.50 $1.50/$15.00
Monthly/Quarterly: $85/$255 $95/$285
DROP Program (overnight parking
for DT residents o nly)
$ 125 $ 145
Annual Permits:
Residential Parking Permit $ 15 $ 20
Downtown Residential Permit $ 15 $ 20
OTHER:
Validated Parking (businesses
only) – block of 100 hours
$ 75 $ 90
Parking Fines:
Expired Meter $ 40 TBD
Overtime Parking $ 45 TBD
Passenger Loading Zone $ 40 TBD
Parking Space Markings $ 40 TBD
No Permit Lot $ 45 TBD
Residential District $38 TBD
Note 1) 10 Hour Meter Increase may be deferred due to decreased demand. Final recommendation will be
forthcoming at time of Fund adoption.
Even with these scheduled rate increases the fund shows difficulties in meeting annual
expenditure needs beginning in FY 2021-22 and extending thereafter. To address this staff
anticipates the need for further rate changes, and other revenue enhancements that will be
necessary to balance the fund. Current forecasts indicate the need for a 15 -20% increase in
revenue to meet long-term expenditure needs. Again, this forecast does not include capital,
operating or maintenanc e costs for the new public/private parking structure project located on
Higuera at Toro Street.
Significant Operating Budget Changes Summary
The proposed budget includes a series of Significant Operating Budget Changes necessary to
address daily needs of the Parking operations for the City.
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Parking Fund Capital Improvement Plan Program
The 5-Year Forecast includes significant capital investment in the parking programs and
resources. These include:
a. The Palm Nipomo parking structure construction cost is estimated at $28.6 million in
FY 20-21. A $8,600,000 contribution from working capital and $20,000,000 proceeds
from debt financing or bond issuance will be used to fund this amount. Final amounts
will be determined as the project construction documents move forward in the City
process. These amounts will change based upon revised project estimates and final
ratio of capital outlay versus debt financing amounts.
b. The forecast does not include capital or ongoing costs associated with the
development of a public-private parking structure east of Santa Rosa on Higuera at
Toro. Funding for that project will need additional consideration and will require
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additional revenue sources not currently forecast in this fund review.
c. Assumes Finance and Information Technology capital projects that have associated
Parking Fund support will occur in the projected years.
d. Significant new funding for the annual Structural Maintenance projects is included
(up to approximately $900,000/year) is budgeted to begin in FY19-20 and continue
annually thereafter. These costs are significant and needed to extend the useful life of
the facilities.
e. Includes $250,000 set aside per year to accumulate funding for additional property
parking lot acquisition for long term demand needs. This amo unt will be available to
help secure potential shared parking arrangements if developed.
f. Wayfinding Program – Includes $50,000 in FY 2019-20 and $7,500 thereafter to
investigate and install wayfinding technology for parking resources in Downtown and
other locations in the City.
g. Meter Upgrades to Credit Card capable meters – Invests $100,000 in both FY 2019-
20 and FY 20-21 to begin upgrade/replacement of existing meters with credit capable
meters that are now at the end of their useful life.
h. Install new Cred it Card capable meters – Invests $157,000 in both FY 2019-20 and
FY 20-21 to begin upgrade/replacement of older coin meters with credit card capable
meters that accept other forms of payment.
i. Fleet Replacement – does not include replacement of any vehicles in the two years of
the Financial Plan however vehicle replacement may be expedited based upon the
Electrification Masterplan that will be conducted in FY 2019-20.
TRANSIT FUND
The Transit Enterprise fund closes out 2017-19 budget cycle with a balanced budget. The
Fund holds approximately $2.7 Million in Working Capital. Of that amount, $800,000 is the
fiscally prudent operating reserve for the $4 million transit program to weather volatility in
revenues. The fiscal outlook for the next five years cont inues to require that expenditures be
mitigated to reflect revenue levels.
Revenues are projected to sufficiently keep pace with escalating costs. However, any
significant changes, such as the expansion of the transit program, will require additional
funding sources. Federal 5307 Transit funds are 40% of the total operating budget and are
projected to continue to grow proportionately during the next fiscal cycle and five -year
outlook. State Transit Development Act (TDA) funds, 40% of the total operating budget, are
also projected to have a modest increase, most of which is attributed to the supplement of
SB1 funds. Local revenue from cash fares, pass sales and Cal Poly subsidy per our
agreement, which are 20% of the total operating transit budget, are a lso expected to see
modest gains. This should meet the mandated farebox recovery requirement of equaling no
less than 20% of the total operating budget. No fare increases, beyond the currently
scheduled, are anticipated at this time. The chart below is a summary of revenue allocations
and actual dollar amounts will be included in the June budget.
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Transit Operating
Revenues
Allocation
Federal 5307 fund 40%
State TDA 40%
Local revenues 20%
Expenditures will continue to be mitigated to reflect revenue levels. As previously stated,
Transit’s obligation to recover 20% of its total operating costs will ultimately determine
service levels. The Fund has benefitted from efficiencies derived from implementing initial
parts of the Short -Range Transit Plan, as more efficient routes have reduced fuel costs.
However, these savings are offset by the 3% growth in annual operating costs.
During the second year of this fiscal cycle the Transit program, the current Transit
Operations and Maintenance contract with First Transit expires. If an extension is granted,
the negotiated costs could differ from the assumed Transit forecast amounts. Therefore, staff
is currently working with the Contractor to identify Year 5 through Year 7 costs in advance
of the contract exp iration and are working to reduce financial impacts.
Finally, negotiations are continuing with Cal Poly relative to the Transit Agreement. It is
most likely there will be a requested extension. The delays are due to discussions regarding
potentially fundamental changes in the methodology for calculating and distributing Cal Poly
costs.
Transit Fund Capital Improvement Plan Program
Capital projects continue to be a challenge for the Transit Enterprise Fund which is highly
reliant on discretionary grants. Capital assistance grants, such as: LCTOP, SB1 SGR, and the
remaining amount of Prop 1B (now discontinued) are helping to deliver on some minor, and
yet important, capital projects for the Transit program. However larger projects, such as fleet
replacement and expansion are yet to have an identified funding source beyond Working
Capital reserves. Further, albeit just outside of the five -year forecast, staff is already working
towards the mandated electrification of the fleet in 2022 -2023 and the associated
infrastructure and vehicle costs associated with such a conversion.
Another challenge is that unlike the SB 1 funds allocated to cities and counties for
operations, the Transit SB 1 funds are not known until regional allocations are completed.
The outlook of the Transit program has other unknowns that it is working to mitigate.
Negotiations with CalPoly University remain crucial to the program as they represent the
highest consumer group. Regional entities such as RTA are seeing their own cost increases
and internal challenges, which will require more from the regions limited and shared funds.
Regardless, based upon the conservative revenue projections, available working capital and
forecasted expenditures the Transit Fund remains positive over the 5-Year Forecast, outside
of anomalies. During the June Transit Fund review, staff will present the City Council a
balanced revenue and expenditure plan.
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Policy Context
The City Charter under Article VIII, Section 802, 803, and 804, requires the Cit y Manager to
present an annual budget to the City Council, for the City Council to hold a public hearing on the
budget, and to adopt a budget. • California Government Code Sec 53901 requires each local
agency to file its budget with the county auditor within 60 days after the beginning of its fiscal
year. If an agency does not have a “formal budget” it must “file a listing of its anticipated
revenues, together with its expenditures and expenses for the fiscal year in progress” which
amounts to much the same thing as a budget.
The City’s budget and fiscal policies are included in each budget document and changes and
revisions recommended by staff considered by the City Council during the public hearing.
Public Engagement
The City’s two -year financial plan process includes a high degree of public engagement and
input ranging from community surveys, outreach to community groups and organizations, a
Community Forum, and several public hearings before the City Council that commence in
September and end with the adoption of the financial plan in June.
CONCURRENCES
All departments participated in the development of the 2019 -2021 financial plan and submitted
SOBCs, CIPs and Major City Goal Work Programs to accomplish the City Councils goals and
desired accomplishments.
ENVIRONMENTAL REVIEW
Adoption of a budget is not a project as defined under the California Environmental Quality Act.
FISCAL IMPACT
Budgeted: Yes, Budget Years: 2019-21
Funding Identified: Yes
Fiscal Analysis:
The development of the 2019-21 Financial Plan is guided by the City’s adopted Fiscal Health
Response Plan years two and three. In preparing the forecast for “Strategic Budget Direction”, all
City departments addressed the required reductions and concessions in their respective progra ms.
The updated five-year forecast considers a conservative approach to revenue assumptions,
expenditures with applicable reductions, required investments in the City’s Major City Goal
work programs, and an ambitious capital improvement plan. Additionally, the long-term forecast
includes an aggressive payments schedule toward the City’s unfunded liability, funding for a 115
Pension Trust fund, and is fully funding the 20% reserve requirements, the approved revenue
stabilization reserve, as well as a build-up of a capital reserve.
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Item 13
Though the long-term forecast shows a balanced budget throughout the five-year forecast period,
it will require constant review of the City’s fiscal standing as recessionary trends keep looming
and the CalPERS board considers furt her changes to its assumed discount rates. Staff believes it
kept the forecast modestly conservative considering the above-mentioned issues, but disciplined
review of revenues and expenditures and subsequent quarterly review by Council will be
essential into the foreseeable future.
Significant Operating Budget Changes (SOBC)
Under the umbrella of the FHRP, SOBCs had to meet specific criteria for funding consideration.
The requests are therefore largely one-time in nature and seek funding for the delivery of Major
City Goals in both fiscal years of the Financial Plan. All requests were considered in the long -
term fiscal forecast to assure that resources will be available.
The requests for one-time funding for defined efforts within the upcoming Financial Plan amount
to $1,421,000 for both fiscal years. Staff recommends setting this funding aside from anticipated
one-time undesignated fund balance at 2018-19 year-end. This approach will allow SOBC
request of an ongoing nature to go forward and keep the budget balanced.
The total proposed fiscal impact of SOBCs is as follows:
2019-20 2020-21
Ongoing* $915,432 $1,078,803
One-Time $786,771 $527,797
Total Impact $1,702,203 $1,606,600
*considers funding from outside sources.
Capital Improvement Plan (CIP)
The proposed CIP was developed with consideration of the three basic elements of 1) Asset
Maintenance, 2) Asset Replacement, and 3) New Assets (related to Major Council Goals or
development areas.) The selection of the projects was carefully aligne d with available resources
while also providing increased funding for critical IT related replacement projects.
As previously mentioned in the CIP section of this report, staff will return with the preliminary
Financial Plan regarding the needed resources to deliver the CIP presented with this report.
Funding sources will be evaluated and adjusted to provide a balanced budget for Council
consideration.
Fiscal Forecast Summary
Overall, the fiscal forecast includes an ambitious work program, both for delivery of MCG work
programs, core services, the down-payment of pension obligations, and the establishment of
reserve and trust funds to counter -act potential changes in the economic climate and the pension
realm.
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ALTERNATIVES
The City Council can provide direction to adjust SOBC, Major City Goal work programs, CIP,
IT, and Fleet funding to accomplish other service or outcomes than those provided and
summarized in this Staff report and related attachments. Specific direction should be provided if
the Council would like to add or delete any recommended allocation of funding.
Attachments:
a - 5-year Forecast
b - Major City Goals
c - SOBCs- One-time and Ongoing
d - General Fund CIP
e - 2019-21 LRM Expenditures
f - SB1 Resolution
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Item 13
2019-21 FINANCIAL PLAN
FIVE-YEAR FORECASTS
FUND PAGE
GENERAL FUND 1
SEWER FUND 2
WATER FUND 3
TRANSIT FUND 4
PARKING FUND 5
ATTACHMENT A
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Budget
FY 19
Projected
FY 20
Projected
FY 21
Projected FY
22
Projected FY
23
Projected FY
24
Tax & Franchise Revenue
Sales & Use Tax 25,467$ 25,899$ 26,266$ 26,509$ 26,756$ 27,006$
Property Tax $ 17,232 $ 17,921 $ 18,638 $ 19,197 $ 19,773 $ 20,366
Transient Occupancy Tax 7,875$ 8,033$ 8,133$ 8,275$ 8,420$ 8,504$
Utility Users Tax 5,740$ 5,854$ 5,971$ 6,091$ 6,213$ 6,337$
Franchise Fees 1,527$ 1,558$ 1,589$ 1,620$ 1,653$ 1,686$
Business Tax Certificates 2,884$ 2,942$ 3,001$ 3,061$ 3,091$ 3,122$
Cannabis ‐$ 650$ 1,500$ 1,515$ 1,530$ 1,545$
Total Tax & Franchise Revenue 60,724$ 62,856$ 65,097$ 66,268$ 67,435$ 68,566$
Fees for Service
Police Services 595$ 606$ 619$ 631$ 644$ 656$
Fire Services 990$ 1,009$ 1,029$ 1,050$ 1,071$ 1,092$
Development Review 5,670$ 5,732$ 5,834$ 5,951$ 6,070$ 6,191$
Parks & Recreation 1,770$ 1,805$ 1,841$ 1,878$ 1,916$ 1,954$
General Government 442$ 451$ 460$ 469$ 478$ 488$
Cannabis 225$ 400$ 750$ 1,000$ 1,020$ 1,040$
Other Revenues 626$ 3,700$ 2,036$ 2,121$ 2,191$ 2,262$
Subventions & Grants 898$ 900$ 900$ 900$ 900$ 900$
Total Fees & Other Revenue $ 11,215 $ 14,604 $ 13,469 $ 14,000 $ 14,290 $ 14,584
Total Revenue $ 71,940 $ 77,461 $ 78,566 $ 80,268 $ 81,725 $ 83,150
Use of Funds
Staffing 51,082$ 53,448$ 55,113$ 55,893$ 57,195$ 58,531$
Contract Services 5,890$ 5,159$ 5,234$ 5,539$ 5,650$ 5,763$
Other Operating Expenditures 10,286$ 6,373$ 6,251$ 6,751$ 6,886$ 7,024$
Cost Allocation (4,118)$ (4,200)$ (4,284)$ (4,370)$ (4,457)$ (4,546)$
SOBCs 2,175$ 2,001$ 1,575$ 1,806$ 1,789$
Total Operating Expenditure $ 63,140 $ 62,955 $ 64,315 $ 65,388 $ 67,080 $ 68,560
Debt Service 2,921$ 2,795$ 2,391$ 3,000$ 3,000$ 3,000$
Capital Expenditures 7,544$ 9,645$ 7,700$ 8,538$ 8,699$ 8,880$
Transfers (4,320)$ 336$ 709$ 625$ 540$ 454$
Total Expenditure $ 69,285 $ 75,732 $ 75,115 $ 77,551 $ 79,319 $ 80,894
Beginning Fund Balance $ 19,721 $ 18,176 $ 16,905 $ 17,357 $ 18,073 $ 18,480
Revenue Over/(Under) Expenses $ 2,655 $ 1,729 $ 3,452 $ 2,717 $ 2,406 $ 2,256
Ending Fund Balance $ 22,376 $ 19,905 $ 20,357 $ 20,073 $ 20,480 $ 20,736
Policy Reserve Level ‐ 20%12,628$ 10,184$ 10,307$ 10,583$ 10,779$ 11,010$
Capital Reserve 500$ 750$ 1,000$ 1,000$ 1,000$
Revenue Stabalization Reserve 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$
Prior Year Restatements
CalPERS Downpayments 4,200$ 3,000$ 3,000$ 2,000$ 2,000$ 2,000$
115 Pension Trust Fund 2,000$ 2,000$ 2,000$ 2,000$ 1,600$
Restricted based on Audit
One‐Time Allocations to 2019‐21 FP 1,421$
Undesignated Fund Balance $ 3,128 $ 3,221 $ 3,299 $ 3,491 $ 3,701 $ 4,126
Normalized Fund Balance 93$ 78$ 191$ 210$ 425$
General Fund Long‐term Forecast
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Item 13
SEWER FUND ANALYSIS
2019‐20 2020‐21 2021‐22 2022‐23 2023‐24
Budget Budget Budget Budget Budget
REVENUES BY TYPE
Sewer Service Charges 11,426,800$ 12,169,542$ 12,960,562$ 13,802,999$ 14,217,089$
Base Fee Revenue*4,301,687$ 4,581,296$ 4,879,081$ 5,196,221$ 5,352,107$
Cal Poly Sales 962,745$ 1,025,323$ 1,091,969$ 1,162,947$ 1,197,836$
Development Impact Fees 300,000$ 300,000$ 300,000$ 300,000$ 300,000$
Industrial User Charges 85,000$ 85,000$ 85,000$ 85,000$ 85,000$
Investment & Property Revenue 50,000$ 50,000$ 50,000$ 50,000$ 50,000$
Proceeds from Debt Financing 64,310,573$ 43,099,819$ 15,920,563$ 426,625$
Miscellaneous Revenue*383,817$ 383,817$ 391,493$ 399,323$ 407,310$
TOTAL 81,820,622$ 61,694,798$ 35,678,669$ 21,423,115$ 21,609,342$
EXPENDITURE BY CATEGORY
Salaries & Benefits 4,253,508$ 4,402,567$ 4,756,899$ 4,892,781$ 5,035,792$
Operating Expenditures 3,004,155$ 3,155,502$ 3,202,835$ 3,250,877$ 3,299,640$
Capital Outlay 65,484,055$ 45,770,079$ 20,156,697$ 5,505,691$ 1,225,000$
Debt Service 4,316,151$ 4,318,410$ 7,276,470$ 7,273,125$ 7,274,423$
Transfers Out 2,202,140$ 2,243,262$ 2,285,566$ 2,328,295$ 2,372,213$
TOTAL 79,260,009$ 59,889,820$ 37,678,466$ 23,250,769$ 19,207,069$
EXPENDITURE BY FUNCTION
General Government 2,202,140$ 2,243,262$ 2,285,566$ 2,328,295$ 2,372,213$
Wastewater Collection 2,475,051$ 4,239,719$ 6,103,922$ 6,675,245$ 2,818,676$
Environmental Compliance 301,686$ 277,595$ 295,170$ 302,768$ 310,741$
Water Resource Recovery 72,150,334$ 50,926,244$ 26,631,592$ 11,410,487$ 11,235,072$
Utilities Revenue 470,475$ 482,588$ 512,596$ 522,641$ 533,031$
Water Quality Lab 788,903$ 795,076$ 845,808$ 866,738$ 888,626$
Sewer Customer Service ‐$ ‐$ ‐$ ‐$ ‐$
Wastewater Administration 871,420$ 925,334$ 1,003,813$ 1,144,597$ 1,048,709$
TOTAL 79,260,009$ 59,889,820$ 37,678,466$ 23,250,769$ 19,207,069$
CHANGES IN FINANCIAL POSITION
Working Capital ‐ Beginning 31,035,597$ 33,596,210$ 35,401,188$ 33,401,391$ 31,573,736$
Revenues over (under) Expenditures 2,560,613$ 1,804,978$ (1,999,798)$ (1,827,654)$ 2,402,273$
Working Capital ‐ Year End 33,596,210$ 35,401,188$ 33,401,391$ 31,573,736$ 33,976,010$
Operating Reserve 2,755,191$ 2,823,948$ 3,504,354$ 3,549,016$ 3,596,414$
Rate Stabilization 834,562$ 888,808$ 946,581$ 1,008,108$ 1,038,352$
CALPers Down Payment 251,535$ 179,668$ 179,668$ 119,778$ 119,778$
UFL Trust Fund 119,778$ 119,778$ 119,778$ 119,778$ 95,823$
Unreserved Working Capital ‐ Year End 29,635,145$ 31,388,986$ 28,651,010$ 26,777,055$ 29,125,643$
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Item 13
WATER FUND ANALYSIS
2019‐20 2020‐21 2021‐22 2022‐23 2023‐24
Budget Budget Budget Budget Budget
REVENUES BY TYPE
Water Services Charges 14,448,304.13$ 15,242,961$ 16,081,324$ 16,965,797$ 17,305,112$
Drought Surcharge Volumetric ‐$ ‐$ ‐$ ‐$ ‐$
Base Fee Revenue 5,091,645$ 5,371,686$ 5,667,128$ 5,978,820$ 6,098,397$
Drought Surcharge ‐ Base Fee ‐$ ‐$ ‐$ ‐$ ‐$
Cal Poly Sales 964,158$ 1,017,187$ 1,073,132$ 1,132,154$ 1,154,797$
Recycled Water 633,000$ 667,815$ 704,545$ 743,295$ 758,161$
Development Impact Fees 800,000$ 800,000$ 800,000$ 800,000$ 800,000$
AB 939 Reimbursement ‐$ ‐$ ‐$ ‐$ ‐$
Investment & Property Revenue 50,000$ 50,000$ 50,000$ 50,000$ 50,000$
Proceeds from Debt 14,300,000$ 13,800,000$
Miscellaneous Revenue *477,000$ 481,080$ 485,242$ 489,486$ 493,816$
Water Sales ‐ FHRP (start FY19)100,000$ 100,000$
TOTAL 36,864,107$ 23,730,728$ 24,861,370$ 39,959,552$ 26,660,283$
EXPENDITURE BY CATEGORY
Salaries & Benefits 4,091,910$ 4,175,287$ 4,491,035$ 4,622,380$ 4,790,979$
Operating Expenditures 13,379,231$ 11,541,927$ 11,642,354$ 11,749,327$ 11,858,468$
Capital Outlay 10,251,287$ 11,777,848$ 3,763,419$ 8,703,282$ 9,444,945$
Debt Service 3,006,206$ 3,019,026$ 3,580,515$ 3,987,118$ 3,989,337$
Transfers Out 2,107,741$ 2,145,276$ 2,183,844$ 2,222,778$ 2,262,749$
TOTAL 32,836,375$ 32,659,364$ 25,661,166$ 31,284,885$ 32,346,479$
EXPENDITURE BY FUNCTION
General Government 2,107,741$ 2,145,276$ 2,183,844$ 2,222,778$ 2,262,749$
Water Source of Supply 12,379,028$ 10,336,146$ 10,414,853$ 10,494,721$ 10,577,152$
Water Treatment 14,003,189$ 14,680,112$ 6,350,451$ 13,293,997$ 14,132,871$
Water Distribution 3,136,405$ 4,294,234$ 5,426,991$ 3,918,552$ 4,021,723$
Utilities Services 414,389$ 421,967$ 442,641$ 455,059$ 470,302$
Water Administration 795,622$ 781,629$ 842,387$ 899,777$ 881,680$
TOTAL 32,836,375$ 32,659,364$ 25,661,166$ 31,284,885$ 32,346,479$
CHANGES IN FINANCIAL POSITION
Working Capital ‐ Beginning 25,899,292$ 29,927,024$ 20,998,388$ 20,198,593$ 28,873,260$
Revenues over (under) Expenditure 4,027,732$ (8,928,636)$ (799,796)$ 8,674,668$ (5,686,195)$
Working Capital ‐ Year End 29,927,024$ 20,998,388$ 20,198,593$ 28,873,260$ 23,187,065$
Operating Reserve 4,517,018$ 4,176,303$ 4,379,549$ 4,516,321$ 4,580,307$
Rate Stabilization 2,050,411$ 2,163,183$ 2,282,158$ 2,407,677$ 2,455,831$
CALPERS Down Payment 252,465$ 180,332$ 180,332$ 120,222$ 120,222$
UFL Trust Fund 120,222$ 120,222$ 120,222$ 120,222$ 96,177$
Unreserved Working Capital ‐ Year End 22,986,909$ 14,358,348$ 13,236,331$ 21,708,819$ 15,934,529$
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Item 13
2019-21 FINANCIAL PLAN
MAJOR CITY GOALS – WORK PROGRAMS
MAJOR CITY GOAL PAGE
HOUSING 1 – 8
CLIMATE CHANGE 9 - 15
SUSTAINABLE TRANSPORTATION 16 - 22
FISCAL SUSTAINABILITY AND RESPONSIBILITY 23 - 28
DOWNTOWN VITALITY 29 - 34
ATTACHMENT B
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Item 13
MAJOR CITY GOALS
HOUSING
GOAL STATEMENT
Facilitate the production of housing with an update of the Housing Element, including an emphasis on
affordable housing (including unhoused people) and workforce housing through the lens of climate
action and regionalism.
ALIGNMENT WITH THE CITY COUNCIL’S VISION:
The Action Plan for the Housing Major City Goal aligns with the City’s Vision Statement by incorporating
tasks and resources to facilitate the Community’s current and future housing and inclusionary priorities,
goals, values. The Housing Element includes policies facilitating the production of diverse housing types,
for the inclusion of housing production that supports the needs of diverse households (i.e., including but
not limited to: extremely low income, elderly, large families, disabled persons, homeless persons, students,
single room occupancy, veterans, and the “missing middle” workforce) within San Luis Obispo.
RESPONSIBLE DEPARTMENT
The Community Development Department is the lead on this goal with assistance from Administration, City Attorney, Finance, Fire, Public Works, and Utilities.
All departments and divisions involved in the development review process play a key role in the review and permitting of housing projects. The City Attorney’s
office plays an important role to assist and advise on existing and emerging State housing laws and reviews affordable housing loan documents, agreements, and
other contracts. It is anticipated that the Finance Department will transition to become the manager of all monies and assets related to the City’s Inclusionary Housing
and In-Lieu Fee Program such as the Affordable Housing Fund, BEGIN Program, deeds of trust, promissory notes, grant awards, and other agreements. As such, the
Finance Department plays a key role during property transactions involving affordable housing units.
PROPOSED WORK SCOPE
Due to State Regulations and upcoming deadlines on the horizon, the Work Program for the Housing Major City Goal is organized differently than prior financial
plan cycles. As listed in the table below, tasks are organized within two major categories: 1) Housing Major City Goal (MCG) Priorities and 2) Ongoing Housing
Production Programs. Furthermore, the MCG Priorities are organized in a hierarchy of three categories: Core Priorities, Secondary Priorities, Tertiary Priorities.
This organizational structure is to ensure:
A)Core tasks are completed prior to State and City deadlines;
B)Adequate resources are allocated to the indicated tasks, including staffing support and workload prioritization; and
C)Objectives described in the Goal Statement are fulfilled.
Work Program Constraints and Limitations
•Ongoing changes to State Legislation related to Housing and Land Use policies may require periodic amendment and or update of our housing policies and
programs.
•Significant public involvement in housing policy development and construction projects, as well as needed additional consultant support for Work Plan
items.
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Item 13
MAJOR CITY GOALS
HOUSING
• Competing priorities that emerge and utilize resources otherwise needed to address housing programs.
• Reliance on non-profit and for-profit developers to come forward with development proposals to increase the supply of housing since the City does not own,
manage, or build affordable housing itself.
• The City’s limited ability to control the decisions and funding of outside agencies and housing providers. The provision of housing and implementation of
the Housing Element requires a variety of City Departments, outside agencies (Dept. of Housing and Community Development) and housing providers to
commit to, and accomplish, their related work programs.
• Required land use entitlements for housing projects (use permit, architectural review, environmental review, etc.) and possible appeals.
• Vast number and divergent objectives of stakeholders or decision makers including housing agencies, non- profit organizations, business and property
owners, residents and neighborhood groups (see “Stakeholders” below).
• Public infrastructure needs that are not fully funded through the City’s development impact fee program.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Additional Significant Operating Budget Change – Yes
Significant investment will be required to successfully implement this Goal, however 40 percent of the resources required can be made available by prioritizing
housing related work through existing budget resources. New investment is required and is detailed below as well as in the work plan summary:
1. New funding to support Core MCG Priority tasks: Affordable Housing Nexus Study, Housing Element update, implementation of incentives
to encourage production of the “missing middle” housing type, and administration of the Affordable Housing Monitoring Program -
$154,027 in 2019-20 and $71,397 in 2020-21.
2. New funding to support Secondary MCG Priority tasks: administrative processing improvements to facilitate housing production and begin
Safety Element update- $0 in 2019-20 and $71,359 in 2020- 21.
3. New funding to support Tertiary MCG Priority tasks: safe housing outreach and education, review of the High Occupancy Residential Use
Ordinance for consistency with best practice and neighborhood wellness, Subdivision Regulations update, Zoning Regulations update to
provide flexible density development options in the Downtown/Upper Monterey Special Focus Area to support housing production, and
begin the Community Design Guidelines update - $71,546 in 2019-20 and $84,269 in 2020-21.
4. New funding to support Ongoing Housing Production Program tasks: Housing Element implementation, grant funding management,
promoting development of on-campus housing, supporting amendment to tax sharing agreements to encourage housing production, provide
timely review of plan check and building permits/inspections for new housing development, and encourage developments that improves the
City’s jobs/housing balance – $366,644 in 2019-20 and $236,272 in 2020-21.
5. Ongoing funding to support Core MCG Priority task: housing production for reimbursement agreement with the Housing Trust Fund for
administrative operations that support financing the ongoing production of affordable and transitional housing – $40,000 annually (2019-
21) from the Affordable Housing Fund.
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Item 13
MAJOR CITY GOALS
HOUSING
ACTION PLAN AND COST SUMMARY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Core MCG Priorities*
1) Complete an Affordable Housing
Nexus Study in alignment with HE 2.15
and HE 4.6*
CDD; All
Departments;
Affordable
housing &
market-rate
developers; San
Luis Obispo
County Housing
Trust Fund
Fall 2019 $63,575 0.30
0.30
2) Complete an update to the City's
Housing Element in alignment with the
6th Regional Housing Needs Allocation
(RHNA) with a focus on housing
production for all households and the
unhoused, and begin technical work for
the update of the Safety Element*
CDD; All
Departments;
Affordable
housing &
market-rate
developers;
Residents; Non-
profit
organizations;
Mid and Large-
scale Employers
Summer
2020 $120,164 0.40
0.70 $106,769 0.50
0.70
3 Packet Pg. 132
Item 13
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
3) Launch a program that creates
housing for Above Moderate-Income
Households that includes "missing
middle" housing types, that is
consistent with HE 2.16*
CDD; Residents;
Affordable
housing &
market-rate
developers;
Economic
Vitality
Corporation;
General
Workforce
Summer
2020 $50,765 0.20
0.20
4) Continue the Affordable Housing
Monitoring Program* CDD; Attorney Summer
2019 $21,008 0.25 $21,008 0.25
Secondary MCG Priorities*
5) Complete a text amendment to Land
Use Element Table 3
CDD; All
Departments
Summer
2020 $5,638 0.05
6) Develop new housing-specific Key
Performance Indicators (KPIs) for cycle
times and set performance measures
CDD Summer
2020 $5,638 0.05
7) Develop management plan for
housing and new Capital Facilities
Districts (CFDs) during development
construction phases
CDD Spring 2021 $5,638 0.05
8) Begin an update to the City's Safety
Element in alignment with climate
action policies and initiatives and HE 1.8
CDD; All
Departments
Summer
2021 $104,641 0.30
0.80
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Item 13
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Tertiary MCG Priorities*
9) Safe housing outreach and education;
and review of the High Occupancy
Residential Use Ordinance for
consistency with best practices and
neighborhood wellness
CDD; All
Departments
Summer
2021 $39,189 0.50 $50,440 0.10
0.50
10) Update the Subdivision Regulations
CDD; Affordable
housing &
market-rate
developers;
Home Builders
Association
Summer
2021 $37,995 0.05
0.25
11) Initiate research on updating the
Zoning Regulations to include flexible
density development options in the
Downtown/Upper Monterey Special
Focus Area to support the production of
smaller housing units; and begin an
update of the Community Design
Guidelines
CDD; Affordable
housing &
market-rate
developers;
Home Builders
Association
Summer
2021 $67,656 0.20
0.40
Ongoing Housing Production Programs*
12) Implement the housing production
goals, policies, and programs in the
Housing Element
CDD Ongoing $155,263 1.15 $151,558 1.15
13) Manage and prioritize grant funding
(i.e. CDBG, GIA, AHF) for housing
production available for extremely-low,
very-low, low, and moderate- income
households
CDD Ongoing $35,935 0.35 $35,935 0.35
5 Packet Pg. 134
Item 13
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
14) Coordinate with non-profit housing
agencies on new 100% affordable
housing developments
CDD; affordable
housing
developers
Ongoing $10,590 0.10 $10,590 0.10
15) Continue to promote on-campus
housing growth CDD; Cal Poly Ongoing
16) Support amendments for future
property tax sharing agreements to
encourage housing
CDD; Attorney Ongoing
17) Monitor and report on changing
State housing legislation CDD; Attorney Ongoing
18) Continue to prioritize streamlining
and expediting projects that facilitate
increased production of all housing
types that are economically accessible
to extremely-low, very-low, low, and
moderate- income residents
CDD Ongoing $23,979 0.25 $28,190 0.25
19) Provide timely plan check review,
building permit review and inspections
for new housing developments*
CDD; All
Departments Ongoing $180,877 1.85 $50,000
Consultant
Plan Check
Service
20) Continue to support
employer/employee and
employer/developer financing programs
and Public/Private/Non-Profit
partnerships to increase housing
opportunities for the unhoused and
local workforce.
CDD; All
Departments Ongoing $5,638 0.05
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Item 13
MAJOR CITY GOALS
HOUSING
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-21 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
21) Continue the City’s participation
with (but limited to) the San Luis Obispo
County Housing Trust Fund and the
Home Builder's Association, to identify,
evaluate, and implement strategies to
increase the production of housing.
CDD Ongoing $5,638 0.05
22) Encourage residential developers to
sell or rent their projects to households
employed in areas that are
geographically included in the
boundaries of the City's jobs: housing
balance analysis, in alignment with HE
10.4.
CDD Ongoing $5,638 0.05
Total
Existing:
$164,031
New:
$592,223
7.00 $0
Existing:
$180,951
New:
$462,749
5.75 $0
Total Investment Per Fiscal Year** $756,254 $643,700
* Significant Operating Budget Change to accomplish this goal
**Includes cost associated with the Housing Trust Fund reimbursement agreement ($40,000 annually), the Building and Safety Fee for Service Program update ($50,000 in
fiscal year 2020-21), and temporary re-allocation of existing staff resources to implement MCG tasks.
DESIRED OUTCOMES AND MEASURES
The City of San Luis Obispo has completed an extraordinary amount of land use planning and strategic planning for infrastructure to support its housing production
goals. Over the next two years, the City will continue to facilitate housing production as major new subdivisions (Avila Ranch, San Luis Ranch) “break ground” and
others (Righetti Ranch, Toscano) continue through the housing production phase. The City has planned to accommodate annual average growth of 1%, but historically
has only accomplished a sustained rate of growth of about .35%. The planning completed and entitlements granted over the past few years will ensure that housing
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production occurs up to the planned rate of growth. Housing production is measured by the City and State based on the number of units constructed and occupied
during a given year.
Another outcome of the Major City Goal work program will be an update of the City’s Housing Element. The Housing Element update will transition the City from
a five-year planning cycle to an eight-year cycle. This work effort will ensure that the City’s housing related goals, policies and programs reflect the needs of the
community and meet State requirements. The City recognizes the seriousness of the current housing crisis and climate vulnerability and is committed to facilitating
ongoing production of housing in alignment with the City’s target of carbon neutrality by 2035. This outcome will be measured by the City’s ability to meet the
deadlines associated with State certification of the City’s Housing Element.
Tertiary and ongoing tasks associated with the Major City Goal will be accomplished and measured through the percentage of the work program completed. Major
City Goal status reports will keep the City Council and community up to date with progress on the wide range of implementation efforts described in the Action Plan
and cost summary.
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GOAL STATEMENT
In response to the climate crisis, continue to update and implement the Climate Action Plan for carbon neutrality,
including preservation and enhancement of our open space and urban forest and planning for resilience.
ALIGNMENT WITH THE CITY COUNCIL’S VISION
The climate crisis has already impacted the City and will have escalating negative impacts to local economic
conditions, quality of life, and environmental health. The Climate Action Major City Goal addresses the cause of
climate change through greenhouse gas emissions (GHG) reductions and prepares for the growing impacts of climate
change so that the City can adapt, become resilient, and thrive in a rapidly changing climate. Put simply, the
overarching vision is to Act, Adapt, and Thrive.
The work plan provided below seeks to actively create opportunity and ensure the community remains a dynamic, high
quality place to live and work, while protecting and stewarding the natural environment within and surrounding the
City. The work is deeply and fundamentally committed to the values of civility, sustainability, diversity and inclusivity,
regionalism and partnership, and resiliency.
RESPONSIBLE DEPARTMENT
The Climate Action Major City Goal is led by the City Administration Department’s Office of Sustainability with close support from the Community Development,
Public Works, Utilities, Parks and Recreation, and Fire Departments. Ultimately, in order to be successful, all City departments must be highly engaged in addressing
the climate crisis.
PROPOSED WORK SCOPE
The proposed scope of work: 1) builds organizational and community capacity and processes for substantial, sustained, and effective climate action; 2) implements
priority Climate Action Plan measures to lay the foundation for achieving carbon neutrality by 2035, and 3) assesses, plans, and implements measures to enhance
the community’s resilience to the impact of climate change. The work will be coordinated across Major City Goals and Departme nts to ensure successful
implementation. In short, the proposed scope of work focuses on collaboration, carbon neutrality, and resiliency.
The proposed scope of work includes the following key activities:
•Climate Action Capacity Building Resources
o Completing the update of the Climate Action Plan, with intentional outreach to underrepresented communities, to identify the path to carbon
neutrality by 2035 including high priority near term implementation actions.
o Creating organizational capacity to implement the Climate Action Plan by adding two Civic Spark Fellows1 per year, developing a sustainability
intern position with increased outreach to diverse populations through the recruitment process, reorganizing the City’s inter-departmental Green
1 Civic Spark is a fellowship program administered by the Local Government Commission and AmeriCorps.
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Team to reflect the structural needs of the Office of Sustainability, and further integrating climate change and equity considerations into
administrative practices and City decision making processes.
o Providing staff time to develop community capacity to implement the Climate Action Plan by supporting the SLO Climate Coalition and the SLO
Green Business Network.
•Priority Climate Action Plan Implementation
o Complete ongoing climate projects including proposing and adopting amendments to the City’s Building Code to provide a path for new buildings
to be GHG neutral. The building code update project includes a related task to research and potentially develop a carbon offset program as a means
of supporting voluntary energy efficiency retrofits in the future.
o Actively participate in the Monterey Bay Community Power Policy and Operations Boards and support program launch (anticipated January 2020).
Following program launch, staff will advocate for and work locally to maximize participation in Monterey Bay Community Power’s programming
focused on low income and disadvantaged communities.
o Implementation of high priority greenhouse gas emissions reduction actions, which include developing Purchase Power Agreement (PPA) solar
projects, implementing the Water Treatment Plant Energy Efficiency Project (solar and in-line hydro-electric power, plus infrastructure efficiency),
establishing a transportation electrification strategic plan, developing a building retrofit program, formalizing a solid waste program in the Utilities
Department, completing LED lighting retrofits with on-bill financing, formalizing a solid waste and organic waste diversion program, completing
municipal operations climate action and zero waste plans, developing an urban forest master plan, implementing a carbon farming pilot project, and
planting new trees.
o Continue maintaining, enhancing, and expanding the City’s Open Space and Urban Forest programs. Consistent with the City Council adopted
Saving Special Places Forever vision plan, the City’s Open Space programming will break down barriers to open space access and further engage
with non-traditional user groups. The California ReLeaf funding through the SLO Climate Coalition that supports the Urban Forest program was
specifically awarded on the basis of implementation in low income areas.
•Adaptation and Resilience
o Planning for climate adaptation and community resilience through the update of the Safety Element of the General Plan and Community Vulnerability
Assessment, and completion of the in-process Hazard Mitigation Plan, Community Wildfire Protection Plan, and Emergency Response Plan. Pending
approval of Caltrans grant funding, the Community Vulnerability Assessment will identify the people, neighborhoods, and communities most at risk
to the impacts of climate change. The Safety Element of the General Plan update will establish policies to reduce these risks.
o Focused resilience actions including Wildland Urban Interface (WUI) fuel reduction projects in City open space, conducting “Ready-Set-Go” fire
awareness and outreach programing, preparation of a Stormwater Business Plan to identify groundwater recharge potential, and the prioritization of
flood control work.
Work Program Constraints and Limitations
Actions to address climate change require significant financial and resource investment s over an extended period; ongoing commitment and continuity beyond the
term of 2019-21 Financial Plan will be necessary. There are grants, state and federal funding, public/private partnerships, and non-traditional funding opportunities
available to help offset the cost associated with certain climate action resilience projects and GHG emission reduction implementation strategies and measures.
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To facilitate pursuit of outside funding resources to achieve this Goal, the City has already established grant writing and project outreach assistance for the 2019-21
Financial Plan period.
Due to the scale of change needed to achieve carbon neutrality and adaption and resilience targets, additional staffing resources are needed. Given limited financial
resources, this work program supplements existing staff with CivicSpark Fellows and a formal Climate Internship Program, while also proposing a reorganization
of the Green Team to more effectively collaborate across departments. The 2019-21 Financial Plan period will allow staff to assess the sufficiency of these staff
resources and to propose changes, if needed, following the adoption of the Climate Action Plan.
There are several other constraints that might limit program implementation and success, beyond financial and staffing resources. Climate action requires commitment
from residents, business owners, developers, regional agencies, the State and Federal governments, other local jurisdictions, and energy providers. Collaboration and
consolidation of resources will be necessary to achieve success on a large scale. Provided below are a list of some of the specific constraints that can reasonably be
expected during implementation of this goal:
•The availability of grant funding may be limited, uncertain, or highly competitive to secure.
•Competing staff priorities which may delay implementation of the work program over a longer period than originally anticipated.
•Significant public involvement or coordination with business, community or neighborhood groups will be required to address the GHG emissions produced
in the city that come from the community.
•Willingness to implement regulations that require shared costs between the public and private sectors to achieve GHG reduction goals.
•Ongoing reliance on support from jurisdictional partners (e.g. Tri-County Regional Energy Network, Monterey Bay Community Power, SLO Air Pollution
Control District, etc.)
By utilizing local and regional resources and collaborating with jurisdictional partners to consolidate scarce resources and efforts, the challenges listed above may
be overcome with continued commitment, continuity, and focused action on plans and programs that have the greatest potential to reduce emissions and strengthen
resilience. Additionally, by integrating climate change related issues into routine decision-making processes, climate action can become standard operating procedure,
significantly streamlining action and reducing costs. Finally, the City’s relationship with the SLO Climate Coalition will substantially amplify the importance of
climate action within the community and multiply the efforts undertaken pursuant to this work program.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Additional Significant Operating Budget Change – Yes
Accomplishing this goal will require leadership commitments from City staff and will require extended collaboration across departments and with the residential
and business community. As noted in the Action Plan, below, tasks are spread across departments and include projects funded by the General Fund, Water Fund,
grants, and support from staff and the community. Total new operating budget requests for Fiscal Year 2019-20 and 2020-21 are $330,000 and $128,000, respectively
($458,000 in total). Of the total $458,000 requested for the two-year budget, $313,000 is for greenhouse gas emissions reduction work; $145,000 is for resilience
and adaptation work.
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This goal is supported through ongoing Capital Improvement Projects, including urban forest augmentation, open space preservation, and open space maintenance
and a new Capital Improvement Project to install electric vehicle chargers at City Hall . The work program also includes enhanced staffing and equipment for flood
control. Additionally, two new, non-traditional Capital Improvement Projects are included in the Major City Goal: 1) solar projects at Fire Station 1, the Bus Yard,
and the SLO Swim Center; and 2) on-bill financing lighting energy efficiency retrofits at the City’s parking garages and at numerous other facilities. These are non-
traditional since they have no out of pocket costs and implement the City’s Fiscal Health Response Plan by contributing to utility savings. They are included here to
ensure Public Works staff capacity to assist with project management. Greyed out dollars show existing budgeted resources allocated to tasks and bold show new
resources being funded through SOBCs.
ACTION PLAN AND COST SUMMARY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Climate Action Capacity Building Resources
1) Complete and Adopt Climate Action
Plan Admin/All Departments Nov-19 $95,000 .20
2) Civic Spark Fellowship Program Admin/All Departments Ongoing $55,000 .10 $53,000 <.10
3) Sustainability Internship Program Admin/All Departments Ongoing $15,000 .10 $15,000 <.10
4) Green Team Reorganization Admin/All Departments Ongoing .25
5) SLO Climate Coalition Support Admin Ongoing <.10 <.10
6) Integrate climate considerations into
City decision making Admin Jan-21 .10 .10
7) 2020 GHG inventory Admin April-21 .10
8) Support SLO Green Business Network
and Certify City Hall as a Green Business Admin Jul-19 $10,000 <.10 .10
9) "Sustainable SLO" Branding
Implementation Admin Ongoing $30,000 <.10 <.10
Priority Climate Action Plan Implementation
10) Monterey Bay Community
Power Board Participation and
Program Launch
Admin Ongoing <.10 <.10
11) Develop PPA solar projects (CIP)PW/Utilities/Admin Jan-20 <.10 .10
12) Water Treatment Plant Energy
Efficiency Project Utilities Jun-20 .50 1.00 $15,146,000 1.50
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PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
13)Transportation Electrification
Strategic Plan PW/Admin Dec-20 $30,000 .10
14) Complete Reach Codes for New
Development and Develop Carbon
Offset Program
CDD/Admin Dec-19;
Ongoing $40,000 .25
15) Building Electrification Program
Development CDD/Admin Jun-21 $50,000 .25
16) On-Bill Financing LED Lighting
Retrofits (CIP)Admin/Public Works Dec-20 .20 .20
17) Formalize Solid Waste Program
in the Utilities Department Utilities Jun-21 .50 .10
18)Municipal Solid Waste Reduction
Plan
19) Municipal Operations Climate
Action Plan
Utilities
Admin/PW
Jun-21
Jun-21
$25,000
$45,000
.10
.20
20) Major Facility Maintenance
(Hydration Station and Pool Thermal
Cover)
Public Works Ongoing $33,000 .01
21) Open Space Preservation Admin/PR/PW Ongoing $100,000 .25 $150,000 .25
22) Open Space Maintenance Admin/PR/PW Ongoing $40,000 .25 $40,000 .25
23) Urban Forest Master Plan PW Jun-21 $35,000 .10 .1
24)Sequestration Study and Carbon
Farming Pilot Program Admin/PR Jun-21 $35,000 .20 .1
25) California Re-Leaf Grant
Implementation Admin/PW Dec-19 $24,000
26) Urban Forest Augmentation PW Ongoing $175,797 .50 $175,000 .50
27) City Hall EV Chargers Admin/PW Dec – 20 $50,000 .20
Adaptation and Resilience
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PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
28) Community Climate Vulnerability
Assessment and Safety Element
Update
CDD/Admin/Fire/PW Jun-21 $432,250 0.25 .50
29) Hazard Mitigation Plan Fire/Admin/PW Dec-21 $12,000 0.10 $10,000 <.10
30) Community Wildfire Protection
Plan Fire Dec-21 $12,000 0.10 $10,000 <.10
31) Emergency Response Plan Fire Dec-21 $25,000 0.10 $10,000 .10
32) Ready Set Go Outreach Fire Ongoing $12,000 0.10 $10,000 .10
33)Urban Fuel Reduction Plan
Development Fire Ongoing $12,000 0.10 $10,000 .10
34) Wildland Urban Interface Open
Space Fuel Reduction Fire / PR Ongoing $12,000
$312,250
0.10
0.20
$10,000 .10
35) Stormwater Business Plan Admin / Utilities Jun-20 $20,000 0.10
Total $1,338,500 4.40 $365,797 2.30 $128,000 2.20 $15,544,000 2.60
Total Investment per Fiscal Year $1,704,297 $15,672,000
Note – the Community Vulnerability Assessment and Safety element value of $432,250 is dependent on successful award of a Caltrans SB1 grant; the Wildland Urban Interface
Open Space Fuel Reduction value of $312,250 is dependent on a successful award of a CalFire grant.
DESIRED OUTCOMES AND MEASURES
The desired outcome of the work program is to:
•Build organizational and community capacity and processes for substantial, continued, and effective climate action by hiring two CivicSpark
Fellows, establishing a Climate Internship Program , re-organizing the Green Team, and through sustained support for the SLO Climate Coalition
and the SLO Green Business Network.
•Adopt the Climate Action Plan Update and implement priority measures to lay the foundation for achieving carbon neutrality by 2035. The key
measurements in this case are adopted sector-specific reduction targets within the community-wide GHG inventory and an adopted, feasible
path to achieve them. With sixteen years remaining until 2035, on average the community should be reducing GHG emissions by approximately
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15,000 metric tons per year on an annualized basis. It should be noted that reductions will not necessarily be linear on a year-over-year basis;
the trendline over time should indicate how we are tracking with overall targets. This work scope includes a GHG Inventory update in 2020.
•Assess, plan, and implement measures now to enhance the community’s resilience to the impacts of climate change by addressing the increased
frequency and intensity of flood, fire, and drought through adoption of the Local Hazard Mitigation Plan and Safety Element of the General
Plan.
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GOAL STATEMENT
Enhance accessible regional transit, bicycle, and pedestrian mobility to promote a transition to a car-free or shared-car
lifestyle and to reduce greenhouse gases.
ALIGNMENT WITH THE CITY COUNCIL’S VISION:
This action plan implements multimodal transport projects and programs that have shown the ability to shift mobility
from single occupant vehicles to active and shared transportation modes, providing for a sustainable and diverse
circulation system consistent with the City’s General Plan mode split objectives. Infrastructure and programs under this
action plan will foster progress of the overall vision of transitioning the City away from a predominantly auto-orientated
community towards a more sustainable future of transport that supports the City’s growth while reducing vehicle miles
traveled and greenhouse gas emissions.
RESPONSIBLE DEPARTMENT
The Public Works Department is the lead on this goal with support from several other departments including Administration, Office of Sustainability and Economic
Development, and Community Development.
PROPOSED WORK SCOPE.
Key Activities of the work scope include:
A.Create safe and enhanced walking and biking opportunities
1)Maintenance. Maintain existing streets, sidewalks, multi-purpose paths, and bike facilities. This is accomplished through Capital Annual Asset
Maintenance funds, primarily funded by the Local Revenue Measure and the State’s Road Repair and Accountability Act of 2017 (SB 1).
2)New Construction. Construction of new facilities to provide safer corridors for pedestrians and bicyclists, and that provide important connections
for vehicles. Projects include the Anholm Neighborhood Greenway and the Railroad Safety Trail. The Anholm Neighborhood Greenway creates a
vital multimodal link between Downtown and the Neighborhoods north of Foothill, including safer routes to Bishops Peak and Pacheco Elementary
Schools. The signalized crossing at Foothill/Ferrini and protected lanes along the rest of the route should make this connection approachable for a
broader range of ages and ability levels, increasing bike and pedestrian mode share. The Railroad Safety Trail improvements connect Cal Poly and
adjacent neighborhoods with Downtown and existing trail terminus at the Railroad Station.
3)Innovative Infrastructure. Construction of bicycle protected intersections at Madonna & Dalidio, LOVR & Froom, and S. Higuera & Prado. As
shown in the image above, bicycle protected intersections provide a higher level of access with less vehicle conflicts.
4)Pedestrian Safety at Night. Construction of priority street lights and implementation of a grass-roots program to provide low-cost illumination for
walkers in dark areas of town.
BICYCLE PROTECTED INTERSECTION
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5)ADA Improvements. Continue to upgrade and install ADA ramps in concert with city paving projects. Of the city’s 2,436 intersection crossing
locations, 22% do not have any ADA ramp, and 50% have ramps which do not meet current ADA standards. Ramps will be installed as paving
funds are available.
6)Pedestrians. Pedestrian programs in this Goal include enhanced focus in the Active Transportation Plan, a new pedestrian signal at Broad &
Woodbridge, as noted in the South Broad St. Corridor Plan and recommended by the Active Transportation Committee, education and outreach for
walkers in low-illumination areas, and ongoing sidewalk maintenance.
B.Infrastructure Supporting Housing and Reducing Vehicle Miles Traveled.
1)Prado Road Interchange. A key project in this category is the Prado Road Interchange. The Prado Road Interchange is one of the most significant
transportation projects in the City’s near-term horizon. It provides a key east-west corridor linking housing with retail, jobs and other amenities, and
is part of the long-range vision linking Madonna Road to Broad Street via the eventual Prado Road extension (not in this Financial Plan). The Prado
Road Interchange and the Prado Road Bridge Replacement just west of South Higuera will be “Complete Streets” with physically-separated facilities
for bicycles and pedestrians. In addition, the project reduces vehicle miles traveled by providing a more direct route for travelers. The interchange
and bridge replacement projects are scheduled to begin construction in 2021 under the scope of this work program.
C.Enhancing Transit Services
1)Continued Service. The Transit program intends to continue service to approximately 1 million riders per year, and, provide a mobility option for
those who cannot or do not drive, and those who choose transit as their choice of travel.
2)Replacement of Vehicles with Electric. Key programs for the next year include a plan to replace aging vehicles, a plan to implement electric busses
into the fleet, a renewal of the agreement with Cal Poly, and exploration of an electric downtown shuttle. The latter item will require analy sis
regarding reliability, safety and other factors.
3)Increased Ridership. Enhance marketing program to seniors, K-12 students and working commuters to increase ridership by 5%.
4)Continued Partnerships. Continue on-time performance and coordination with RTA.
D.Emerging Trends and Technology
1)Study of New Transportation Trends. This is a critical area, in that how people travel has been heavily impacted by technological changes over
the last several years. Rideshare services, bikeshare, scooters and other personal devices, have radically changed travel patterns. Therefore, under
this priority, staff intends to thoroughly investigate various models and determine, with Council direction, the most appropriate array of choices for
residents and visitors of San Luis Obispo.
2)Updated Neighborhood Traffic Management Policy. In addition, staff will update the Neighborhood Traffic Management Policy to provide a
more streamlined process, complete the Active Transportation Plan (which will include a first-ever Pedestrian Element and innovative public
engagement), and work with several partners, including SLOCOG, Parks and Recreation, Police Department, Downtown SLO, advocacy groups,
Cal Poly, and neighborhood groups, to determine if an ‘Open Streets’ event in San Luis Obispo is a viable option. These events have been
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implemented across North and South America, and create, at least for one day, a linear park, a community gathering event, an opportunity to explore
neighborhoods and businesses, and other benefits.
3)Continued Education. The program will continue education and outreach in collaboration with the Police and Parks and Recreation Departments
and Bike SLO County. This partnership has implemented such programs as the Safety Bike Light Giveaway, the Bike Rodeo, coordination with
Bike to Work/School Month, Walk Your Child to School Week, and other events.
The Action Plan & Cost Summary table below only represents a fraction of the projects and programs that pertain to sustainable transportation over the next five
years capital expenditures to advance sustainable transportation is estimated at $17.6 million from the general fund, $20.8 million from transportation impact fees,
and more from Regional Funding Sources and Direct Developer Contributions.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Additional Significant Operating Budget Change – NO
While significant capital investments will be required to achieve this Goal over the course of th is financial plan, current staffing resources are adequately paired with
the scale of the action program.
ACTION PLAN AND COST SUMMARY
Greyed out dollars show existing budgeted resources allocated to tasks and bold show new resources being funded through SOBCs.
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Creating Safe Bicycling & Walking
Opportunities
Reconstruct & Resurface Streets Public Works Ongoing $22,500 $2,575,000 $22,500 $1,600,054
Complete Broad Street Bike/Ped
Signal at Woodbridge.
(Traffic Impact Fees & Infrastructure
Investment Fund)
Public Works 2020 $9,000 $200,000
$70,000
Perform maintenance on pedestrian
& bicycle paths
Public Works Ongoing $9,000 $9,000 $79,000
PROGRAMS/PROJECTS
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Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Construct sidewalk replacements &
new installations
Public Works Ongoing $9,000 $46,000 $9,000 $89,000
Continue to implement Vision Zero
thru the Annual Traffic Safety &
Operations Program
Public Works & PD Ongoing $22,500 $22,500 $55,000
Continue Construction of the
Railroad Safety Trail.
(Traffic Impact Fees, Grant, &GF)
Public Works,
Union Pacific
Railroad, Public
Utilities
Commission, &
CalTrans
Ongoing $9,000 $570,000 $9,000 $150,000
$3,240,000
Construct Anholm Greenway Phase
1 & 2
(Grants, SB1, & GF)
Public Works, Parks
& Rec., CDD,
CalTrans.
2019 $9,000 $400,000
$995,894
$9,000 $800,000
Construct California & Taft
Roundabout.
(Traffic Impact & Mitigation Fees)
Public Works, City
Attorney’s Office
2020 $22,500 $2,300,000
$60,000
$0
Construct Bicycle Protected
Intersections at:
1)Madonna & Dalidio
2)LOVR & Froom
3)Prado & Higuera
(Traffic Impact & Mitigation Fees
and Direct Developer Contribution)
Public Works, CDD,
CalTrans, & US
Postoffice,
2019-2021 $45,000 $300,000 $45,000 $1,000,000
Construct miscellaneous bicycle
facilities improvements from the
Bicycle/Active Transportation Plan
Public Works &
Bike SLO County
Ongoing $9,000 $100,000 $9,000 $100,000
PROGRAMS/PROJECTS
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Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Construct New Street Lights & Low-
Cost Personal Safety Initiatives.
Public Works & PD Ongoing $9,000 $75,000 $9,000 $75,000
INFRASTRUCTURE SUPPORTING
HOUSING & VMT/GHG REDUCTION
Complete Prado Road Interchange
Environmental Review &
Construction Documents
(Traffic Impact & Mitigation Fees,
Direct Developer Contribution,
County Tax Share Funds, & SLOCOG
Grants)
Public Works, CDD,
Caltrans, SLOCOG,
County of SLO, San
Luis Ranch
2020 $67,500 $800,000
$500,000
$157,500 $1,500,000
Construct the Prado Road
Interchange (overpass and NB
Ramps)
(Traffic Impact & Mitigation Fees,
Direct Developer Contribution,
County Tax Share Funds, & SLOCOG
Grants)
Public Works, CDD,
Caltrans, SLOCOG,
County of SLO, San
Luis Ranch
2021-2023 $112,500 $26,000,000
Complete Prado Creek Bridge
Environmental Review &
Construction Documents
(Traffic Impact Fees & Grants)
Public Works &
CalTrans
2019 $22,500 $400,000
Construct the Prado Creek Bridge
(Traffic Impact Fees & Grants)
Public Works 2020-2021 $90,000 $8,000,000
PROGRAMS/PROJECTS
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Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Construct LOVR Spur of the Bob
Jones Bike Path
(Traffic Impact & Mitigation Fees
and Direct Developer Contributions)
Public Works, San
Luis Ranch, Froom
Ranch
2021 $9,000 $200,000 $22,500 $2,000,000
ENHANCING TRANSIT SERVICES
Develop Plan to Replace Aging Fleet Public Works,
SLOCOG, & RTA
$9,000 $9,000
Complete University Transit Service
Agreement with CalPoly
Public Works &
CalPoly
$9,000 $9,000
Investigate Electric Downtown
Shuttle Service
Public Works $18,000 $18,000
Augment Ridesharing Services
(Parking Enterprise Funds)
Public Works,
SLOCOG, RTA
$18,000 $18,000
Enhance Transit marketing to
seniors, K-12 students, and working
commuters; and with Cal Poly, to
increase ridership 5%
Public Works $18,000 $18,000
Continue 98% On-Time performance
with Short Range Transit Plan
Public Works $22,500 $22,500
Continue service coordination with
RTA to improve mobility for transit
users
$22,500 $22,500
Emerging Trends & Technology
Complete Active Transportation
Plan
Public Works, CDD,
Bike SLO County
2020 $67,500 $100,000
Complete Update of Neighborhood
Traffic Management
Policy/Guidelines
Public Works $67,500
Complete Update of Traffic Impact
Study Guidelines Consistent with SB
743
Public Works, CDD $22,500
Investigate Potential Shared
Mobility Policy
Public Works,
Admin, & PD
$9,000 $9,000
PROGRAMS/PROJECTS
21 Packet Pg. 150
Item 13
MAJOR CITY GOALS
SUSTAINABLE TRANSPORTATION
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Investigate “Open Streets” events
with LA CicLAvia
Public Works, SLO
County, SLOCOG
$9,000 $9,000
Continued Installation of Electric
Vehicle Charging Stations
Public Works, CDD,
Admin, PGE
$9,000 $9,000
Continued Active Transportation
Education, Outreach, & Activism
Public Works $22,500 $22,500
Total $598,500 $ 9,691,894 $693,000 $44,688,054
Total Investment per Fiscal Year - $10,290,394 $45,381,054
All Transportation projects include public outreach in accordance with the City’s adopted Public Engagement Manual at a minimum and often expanded above and beyond based on project
complexity and/or controversy.
Transportation projects are also communicated & coordinated as appropriate thru partnerships such as Bike SLO County & Downtown Assoc. as well as respective advisory bodies such as the
DESIRED OUTCOMES AND MEASURES
1.Begin Construction of Prado Road Interchange
2.Begin Construction of Prado Road Creek Bridge
3.Begin Construction of Railroad Safety Trail and Foothill/California Crossing Improvements
4.Complete Anholm Neighborhood Greenway Phases 1 & 2 Completed
5.Complete California & Taft Roundabout Completed
6.Significant progress towards the City’s Mode Split Goals
a.Bicycle Volumes Increase at a greater rate than Automobiles
b.Pedestrian Volumes Increase at a greater rate than Automobiles
c.Transit Ridership Increase at a greater rate than Automobiles
7.Reduce average Vehicle Miles Traveled (VMT) and Greenhouse Gas Emissions
22 Packet Pg. 151
Item 13
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
GOAL STATEMENT
Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on efficiencies, strategic
economic development, unfunded liabilities, and infrastructure financing (Funding the Future).
ALIGNMENT WITH THE CITY COUNCIL’S VISION:
The approach to Fiscal Sustainability and Responsibility is multi-pronged, concentrating not only on fiscal
matters, but economic development, climate action, emergency preparedness, and organizational effectiveness.
It therefore incorporates such key values as sustainability and diversity by taking an all-encompassing approach
to local and regional partnerships and a holistic look at fiscal sustainability. The approach is informed by past
action, policies, and efforts and will pursue an implementation that is sustainable into the future.
RESPONSIBLE DEPARTMENT
The Finance Department is leading the goal efforts with assistance from Human Resources, Administration, Fire,
and the new Community Services Group which represents Community Development, Parks and Recreation, Public Works, and Utilities.
PROPOSED WORK SCOPE.
The scope of the project consists of three key areas: 1) focus on efficiencies by doing business differently, 2) economic development, 3) continued work to address
unfunded liabilities and 4) public engagement to address public infrastructure funding. In the Spring of 2019, the City launched its plan to reorganize to become the
Organization of the Future. The first phase covers this financial plan period and will include thoughtful departmental reorganizations and new ways of doing business
to achieve efficiencies.
WORK PROGRAM CONSTRAINTS AND LIMITATIONS
There are a variety of factors that can influence this work program and limit its progress . Below are factors that could constrain or limit the program, leading to
adjustments as the two-year program effort evolves.
1.Changing actuarial or other assumptions by CalPERS that could result in additional increases to be borne by participating member agencies.
2.Changing actual or forecasted revenue.
3.Inherent risk of economic fluctuation such as inflation.
4.Good faith negotiations with labor groups that are required prior to changing employee compensation and benefits.
5.The feasibility of the local tax measure not being renewed and lack of community support for infrastructure funding.
6.The challenges associated with launching new ways of doing business and the time it may take to achieve the same.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Additional Significant Operating Budget Change – Yes.
23 Packet Pg. 152
Item 13
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
ACTION PLAN AND COST SUMMARY
Greyed out dollars show existing budgeted resources allocated to tasks and bold show new resources being funded through SOBCs.
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
FISCAL HEALTH
1) Continue pension payments from
one-time funding toward unfunded
liability. Monitor progress in
reduction of unfunded liability.
Finance Ongoing $15,000
$3,500,000
.10 $15,000
$3,500,000
.10
2)Establish a 115 Pension Trust
Fund, related funding levels, and
use policy. Provide monitoring
through the Investment Oversight
Committee.
Finance 2/15/2020 $30,000
$2,300,000
.20 $15,000
$2,300,000
.10
3) Continued implementation of the
Fiscal Health Response Plan that
address short- and long-term
financial challenges.
Finance 6/30/2021
4) implement quarterly financial
reports to monitor fiscal
performance including performance
measures.
Finance – City
Departments
Ongoing $10,000 $10,000
5) Continue to implement and track
operational efficiencies including
alternative service delivery, best
management practices, and cost
containment measures that
preserve the effectiveness of City
services and operations.
Administration Ongoing
6) Continue to monitor legislation
that could impact City revenues and
expenditures.
Finance Ongoing $9,000 .10 $9,500 .10
24 Packet Pg. 153
Item 13
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
7) Closely monitor cannabis related
income and expenditures.
Finance Ongoing $30,000 .30
8) Continue to closely monitor
liability and workers compensation
costs with a focus on root cause
analysis and prevention.
Human
Resources
Ongoing $58,000 .75 $58,000 .75
9) Monitor changes in market
compensation, including impacts of
minimum wage increases, and
present comparative data to
Council.
Human
Resources
8/30/2020 $16,000 .25
11) Negotiate labor agreements
consistent with Fiscal Health
Response Plan objectives with the
San Luis Obispo City Employees
Association and the San Luis Obispo
Police Staff Officers Association.
Human
Resources
8/30/2019 $8,000
$40,000
.10
12) Create an Equipment
Sustainability Fund for Public Safety
to forecast and budget for
replacement of safety equipment
that has expired or become
damaged.
Police
Fire
Ongoing $48,650
$346,938
$46,032
$353,876
13) Hire entry-level fire recruits to
help reduce long-term pension
obligations for non-PEPRA
employees.
Fire Ongoing $32,000 $32,000
14) Implement injury reduction
programs in the Fire Department to
reduce costs associated with job-
related injuries.
Fire 12/31/2021 $40,000 $18,000
15)Implement Online reporting for
Police Department
Police Ongoing $13,600 $13,600
25 Packet Pg. 154
Item 13
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
16) Hire an additional police officer
to backfill for a school district
funded School Resource Officer
Police 06/2021 $165,827 $171,610
17)Fund a new Cannabis Detective
Position using Cannabis Fees
Police July 2019 $198,182 $195,942
18)Purchase specific equipment
related to Cannabis Detective
Police July 2019 $17,000
19)Fund Police field service
technician and a Downtown
Sergeant with hotel land lease
revenues
Police July 2019 $233,787 $227,695
ORGANIZATIONAL EFFECTIVENESS
1) Fully implement MOTION ERP,
HCM, and Budget modules.
Develop dashboards regarding
organizational effectiveness
including diversity metrics.
Human
Resources
Finance
2/28/2020 $60,000
$75,000
.75
1.00
2) Implement Phase 1 of the
Organization of the Future to
achieve organizational efficiencies
through thoughtful reorganizations.
Could include new positions or
reclassifications or consultant
services. Year one of this effort will
inform resources needed.
Community
Services
(CDD, Parks and
Rec, PW, and
Utilities)
6/30/21 $225,000
tbd
$225,000
tbd
3)Identify barriers to diversity and
inclusion within organizational
systems in support of the
Organization of the Future.
Human
Resources
Ongoing $6,500
$20,000
.10 $6,500
$20,000
.10
4) Expand recruitment outreach
and methods to reach diverse
sources.
Human
Resources
Ongoing $65,000 1.00 $65,000 1.00
26 Packet Pg. 155
Item 13
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Economic Development
1) Downtown Vitality (PBID, Public
Art, Parking Structures, Hotels,
Housing)
Administration Ongoing $86,819
.20
$89,746
.20
3)Development and
implementation of a business
attraction and retention program,
funded by SB 1090, will cost
$70,000 in contract services and is
estimated to take 20% of the
Economic Development Manager’s
time.
Administration Ongoing $22,000 .20 $24,000
$70,000
.20
4)Updated the EDSP to include
business-based strategies to
address emergency preparedness,
climate action, etc, will cost
$50,000 in contract services and is
estimated to take 20% of the
Economic Development Manager’s
time.
Administration 2/28/20 $22,000
$50,000
.20 $24,000 .20
5) Increase revenues from property,
sales, and Transient Occupancy Tax
(TOT) by implementing strategies in
the EDSP.
Administration Ongoing .20 .20
6) Continue partnership with SLO
HotHouse to create and expand
economic activities.
Administration Ongoing $11,000
$50,000
.10 $12,000
$50,000
.10
EMERGENCY PREPAREDNESS
1) Hazard Mitigation Plans Fire Ongoing
27 Packet Pg. 156
Item 13
MAJOR CITY GOALS
FISCAL SUSTAINABILITY AND RESPONSIBILITY
PROGRAMS/PROJECTS
Major Task Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
2) CDD safety update Community
Development
3) Assessment of smoke toll on
tourism, outdoor activity, etc.
4) Recovery Planning process - Plan
-Respond - Recover
Fire Ongoing $60,000 $60,000
INFRASTRUCTURE FINANCING $60,000 $60,000
1) Asset modeling - Cal Trans grant
$90K
Public Works Spring 2020
2) Funding the Future Campaign Administration Spring 2020
Total Investment per Fiscal Year $7,109,303 5 $ 0 $6,888,501 3.30 $ 0
Desired Outcomes and Measures
The work program was designed to align with the efforts underway with the City’s Fiscal Health Response Plan which consider the development of
new revenue, thoughtful reorganizations and expenditure reductions, and employee concessions. The approach should achieve a budget that addresses
the community’s goals and allows the organization to deliver core services in the long run with the needed resources. The individual components
address:
1.Down payment of the City’s unfunded pension liability and funding for a 115 Pension Trust Fund.
2.Economic Development efforts to keep San Luis Obispo as an attractive place to do business, visit, and shop.
3.Begin the efforts for Funding of the Future
4.Considers thoughtful reorganizations to further streamline service delivery and organizational effectiveness.
5.Will implement the final phase of the Motion project and turn to long-term support of the new ERP system.
6.Addresses the efforts needed for the Cannabis industry to begin business in San Luis Obispo successfully.
28 Packet Pg. 157
Item 13
MAJOR CITY GOALS
DOWNTOWN VITALITY
GOAL STATEMENT
Support the economic and cultural heart of the City with attention to safety, maintenance, infrastructure and amenities.
ALLIGNMENT WITH THE CITY COUNCIL’S VISION:
The “Downtown Vitality” Action Plan directly aligns with the City’s Vision Statement of, “a dynamic community
embracing its future while respecting its past with core values of civility, sustainability, diversity, inclusivity,
regionalism, partnership, and resiliency”. The variety of projects and services included in the work plan touch on all
aspects of the vision. Downtowns have long been places where community members peacefully gather for enjoyment
and celebrations and supporting an active and vibrant downtown through programs like the implementation of our
Downtown Concept Plan and Mission Plaza Concept Plan will help to ensure this continues. Sustainability is highlighted
throughout the Action Plan from the ongoing care of the natural environment to the enhancement of pedestrian amenities
to improve walkability. Diversity and inclusivity are reflected by expanding programs that provide a welcoming
atmosphere, a variety of services and experiences, a safe setting for all those in the downtow n, as well as through the
activation of public spaces where all community members are invited to participate in social, art and cultural events.
Regionalism is included in the support of the opening and operations of our new downtown hotels and coordination with
our Tourism Business Improvement District (TBID) efforts to ensure a strong tourism economy in the City as well as the
region. Partnership is expressed through close collaboration with Downtown SLO (DSLO) and implementation efforts
should a new downtown Property-Based Business Improvement District (PBID) be formed. Finally, resiliency can be
seen through action items like the development and implementation of a “Shop Local” program and the implementation
of updates to the City’s Economic Development Strategic Plan.
RESPONSIBLE DEPARTMENT
The “Downtown Vitality” Major City Goal is led within the City Administration Department by the Economic Development Manager and with direct implementation
support from the Community Development, Parks and Recreation, Police, Public Works and Utilities departments.
PROPOSED WORK SCOPE.
The proposed work scope has a variety of tasks that fall into four main categories based on the goal statement:
1. Safety
2. Maintenance
3. Infrastructure
4. Amenities
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Additional Significant Operating Budget Change – Yes
29 Packet Pg. 158
Item 13
MAJOR CITY GOALS
DOWNTOWN VITALITY
Significant investment will be required to successfully implement this goal, however, most resources can be made available by prioritizing downtown related work
through existing budget resources. Some new investment is required and is detailed below as well as in the work plan summary:
1. New funding to support the City’s participation in the downtown PBID - $62,023 in 2019-20 and $62,023 in 2020-21 (+$22,712 annually from the Parking
Enterprise Fund)
2. Development and implementation of a Shop Local Program through SB 1090 funds - $30,000 in 2019-20
3. Development and implementation of a business vitality program through SB 1090 funds - $70,000 in 2020-21
4. Expand Downtown Trip Reduction & Parking Demand Reduction Programs - $40,000 (Parking Enterprise Fund)
Greyed out dollars show existing budgeted resources allocated to tasks and bold show new resources being funded through SOBCs.
ACTION PLAN AND COST SUMMARY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
SAFETY
Focus on providing Downtown Bike Patrol
and Community Action Team Officers
including social worker support
Police Ongoing $661,605 4.00
Fund Police Field Service Technician and a
Downtown Sergeant with hotel land lease
revenues
Police Jul-19
Installation of Downtown Security Project
Phase 2 (Tier 2)
Public Works Dec-20
$438,000
Install security cameras in Mission Plaza Police, IT,
Public Works
Sept-19 $25,000
Update and refresh Direct Giving (Meter)
Program with Downtown SLO, United Way
and 40 Prado
Administration,
Public Works
Dec-19 $5,700 0.05
MAINTENANCE
Continue to provide sidewalk pressure
washing services
Public Works Ongoing $13,000
13,000
Continued maintenance of downtown
planters
Public Works Dec-19 $10,000
$10,000
30 Packet Pg. 159
Item 13
MAJOR CITY GOALS
DOWNTOWN VITALITY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Work with the City's Special Events Team
and Downtown SLO on a viable recycling and
compost program for large events occurring
in Mission Plaza and downtown
Utilities Ongoing
Sidewalk and tree grate repair and
replacement
Public Works Ongoing $25,000
$25,000
Sidewalk tile replacement Public Works Ongoing $10,000
$10,000
Enhanced downtown tree pruning Public Works Ongoing
1.00 $40,000
1.00 $40,000
Continue to explore options to reduce white
fly population and fly/pigeon issues
Administration Ongoing $7,500 0.10
$6,000 0.10
Host Creek Clean Up Day in the downtown Administration Ongoing $1,500 0.02
$1,500 0.02
INFRASTRUCTURE
Downtown Renewal Project Public Works Jan – 20
Jan - 21
$400,000 $640,000
Implement designated pick up and drop off
zones in downtown for ridesharing (part of
Active Transportation Plan and Access &
Parking Management Plan)
Public Works Dec-21
Explore use of shared mobility devices in
downtown (also included in Sustainable
Transportation Major City Goal)
Public Works Jan-21
Continue progress on a Higuera St. Parking
Structure and an Upper Monterey St.
parking district
Administration,
Community
Development,
Public Works
Ongoing $100,000 0.10
Parking Structure Facility Improvement
Program
Public Works Ongoing
$2,363,000
$1,284,000
Begin Construction on the Palm/Nipomo
Parking Structure
Public Works Winter
2020/21
$28,620,000
Replacement of Marsh St. bridge over San
Luis Creek
Public Works May-21 $6,400,000
31 Packet Pg. 160
Item 13
MAJOR CITY GOALS
DOWNTOWN VITALITY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Complete design of Cheng Park
rehabilitation
Public Works Dec-20 $50,000
AMENITIES
Activate public spaces in downtown through
events and programming such as pop-up
classes and temporary public art
Parks &
Recreation
Ongoing $20,000 0.20
Support Downtown SLO, property owners
and other organizations to activate vacant
retail spaces through pop-up shops,
activities, and events
Administration,
Parks and
Recreation
Ongoing
0.01
Support Downtown SLO tree lighting and
street banner programs
Administration Dec-19 $5,700 0.05
Work with Downtown SLO to update
downtown tile maps
Administration Aug-19 $2,290 0.02
$1,145 0.01
Explore options, including adjacent to
Bubblegum Alley, for additional public art
and creative place making
Parks &
Recreation,
Administration
Ongoing
Support the opening and operations of new
downtown hotels
Administration Ongoing $12,900 0.10
$12,900 0.10
Continue to Implement the Downtown
Concept Plan
Community
Development,
Public Works
Ongoing
Continue to Implement the Mission Plaza
Master Plan including the completion of the
preliminary design for the restroom
replacement project
Community
Development,
Public Works,
Parks &
Recreation
Oct-19
$45,000
$150,000
ECONOMIC DEVELOPMENT
Support the implementation of a Property-
Based Business Improvement District (also
included in Fiscal Health and Sustainability
Major City Goal)
Administration Sep-19 $11,450 0.10
$11,450 0.10
32 Packet Pg. 161
Item 13
MAJOR CITY GOALS
DOWNTOWN VITALITY
PROGRAMS/PROJECTS
Major Task
Responsible
Department &
Stakeholders
Completion
Date
2019-20 2020-21
Operating Capital Operating Capital
Expense FTE Expense FTE Expense FTE Expense FTE
Continue City partnerships for economic
development and business support in
downtown including SLO HotHouse,
Chamber of Commerce programs, etc.
Administration Ongoing $11,450
$43,100
0.10 $11,450
$45,000
0.10
Ongoing downtown business support Administration Ongoing $22,900 0.20 $22,900 0.20
Enhance Downtown Trip & Parking demand
reduction programs.
Public Works Ongoing $40,000 0.10 $40,000 0.10
Create a Park & Walk informational
campaign in coordination with Downtown
SLO
Public Works,
Administration
Mar-20 $11,450 0.10 $11,450 0.10
Create and implement a Shop Local program
(also included in Fiscal Health and
Sustainability Major City Goal)
Administration Oct-20 $11,450 0.10 $11,450 0.10
Develop and implementation of a business
attraction and retention program
Administration Jun-20 $22,900 0.20
Update Economic Development Strategic
Plan and implement actions specific to
downtown (also including in Fiscal Health
and Sustainability Major City Goal)
Administration Feb-20 $22,900
$42,500
0.20 $22,900 0.20
Total $1,067,395 6.55 $9,298,000 0 $254,045 2.33 $31,247,000
Total Investment Per Fiscal Year $10,365,395 $31,501,045
DESIRED OUTCOMES AND MEASURES
Downtown San Luis Obispo is the community’s center and heart. It serves as a vibrant social and commercial center. Downtown is home to numerous businesses
that provide shopping, dining, special events, cultural and social activities, and is a permanent home to many City residents as well as a temporary home to our
visitors. The goal of Downtown Vitality is to deliver on the City’s responsibility in supporting the economic and cultural epicenter of San Luis Obispo.
Through implementation of the Downtown Vitality Action Plan, community members can expect an increased level of security in the downtown through the addition
of infrastructure to safeguard participants at large events, equipment that provides eyes on the ground at all hours, safety personnel and a social worker that are able
33 Packet Pg. 162
Item 13
MAJOR CITY GOALS
DOWNTOWN VITALITY
to connect individuals struggling with basic needs. Bike officers will provide a visible and active presence in the downtown, interfacing with visit ors, community
members and the homeless. The Downtown Sergeant will coordinate resources between the Police Department, City Depar tments as well as community partners.
The City will continue to provide public awareness and its support of homeless services in partnership with Downtown SLO thro ugh a refresh of the Direct Giving
Program.
Through the Action Plan, the City will continue to respond to the changing needs of people coming to and from the downtown, whether it be for better sidewalks
and pedestrian access, additional parking, or amenities that support shared mobility. A downtown that is clean and maintained – both the built and natural environment
–will provide for a better experience for those living, visiting and working there. In addition, the City is investing in reso urces that will address nuisances caused by
insects and birds and through a new program, will engage community members in caring for the downtown through participation in beautification activities and a
creek clean up. Installation of new infrastructure and the repair of aging infrastructure is a key component to the future health of the downtown.
Expanding on the idea of creative placemaking will make the downtown appealing and keep it relevant with public art, lighting bea utification, new street banners
and refurbished directional signage. As we continue to see increasing competition from other cities in our region, we can ensure a stronger tax base with these new
amenities.
The City has identified various projects and resources that support downtown business success and the fiscal health of the Ci ty. A Property Based Improvement
District will provide an elevated level of clean and safe services, as well as an expanded Ambassador Program that is a benefit to locals and tourists coming into the
downtown and staying at hotels that will be coming online in 2019. With the closure of Diablo Canyon Power Plant and the changing habits of consumers, we need
a downtown core that is increasingly dynamic and active. The development of a Shop Local program and the implementation of our updated Economic Development
Strategic Plan will ensure that the City is proactive in the attraction and retention of businesses in the downtown, so they are not just surviving but thriving. Continuing
to work with our nonprofit, education and business-centric partners is essential in identifying innovative talent and encouraging entre preneurs to grow their new,
creative ideas in the heart of downtown, adding to the diversity of our City’s existing social and economic fabric.
34 Packet Pg. 163
Item 13
2019-21 FINANCIAL PLAN
SIGNIFICANT OPERATING BUDGET CHANGES
FUND SUMMARY PAGE
ONE-TIME 1 – 47
ONGOING 48 – 85
Attachment C
Packet Pg. 164
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Motion Enterprise Resource Planning
Function Program
20 - Infrastructure & Transportation 25450 - Geographic Info Services
35 - Fiscal Health & Governance 30100 - Human Resources
25140 - Finance
SUMMARY OF CHANGE
In accordance with the 2016-17 Supplemental Budget, funding was approved for resources to
support the Motion Enterprise Resource Planning System (ERP). The recommendation from
the project consultant and the Motion Steering Committee for on -going IT support is for 2.5
Full-time employees:
• 1 FTE Application System Specialist ($106,570 salary & benefits)
• 1 FTE Application Business Data Analyst ($116,936 Salary & Benefits)
• Contract IT Project Manager ($84,910 for 2020 fulltime 7/1/19 to 12/31/19, then half -
time 1/1/20 to 6/30/20 & $59,764 for 2021 - half-time 7/1/20 to 6/30/21 salary &
benefits)
• One-time contract consulting for post implementation is requested in the amount of
$40,000 for 2019-20 and $24,000 for 2020-21
The requirements for ongoing HR support are 1 Full-time employee:
• Human Resource Analyst – Classification and Compensation ($72,000 salary and
benefits
And 2.5 Contract employees through the end of the financial plan:
• Human Resources Administrative Assistant II ($52,000 salary and benefits)
• ½ time Human Resources Analyst ($44,000 salary and benefits)
• Administrative Assistant II ($46,000 salary and benefits)
The requirement for the Finance Department is one Contract Accounting Assistance
The Finance Department is requesting a contract Accounting Assistant position for the
duration of the Financial Plan to assist with the additional workload that has transitioned to
Finance with the implementation of the Motion project. This will allow the department to
better gauge the ongoing need once the system fully yields the work efficiencies. The annual
cost is estimated at $75,000 and $78,000 respectively.
Not previously disclosed needs are related to ongoing training and education on the system.
Staff is therefore requesting additional funding for consultant support and training sessions on
an as-needed basis.
1 Packet Pg. 165
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Motion Enterprise Resource Planning
FISCAL IMPACT
The staffing requests included in the SOBC were incorporated into the long-term budget
forecast with the 2017-19 Financial Plan. This request therefor seeks approval for a budget
increase for the training and support aspects only.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 11,000 11,000
2020 100 7463 40,000 40,000
Sub-Total: 2020 51,000 51,000
2021 100 7463 24,000 24,000
Sub-Total: 2021 24,000 24,000
Total 75,000 75,000
SERVICE LEVEL IMPACT
The requested staffing is necessary to adequately support the new Enterprise Resource
Planning software that the City implemented as part of the Motion project. This software is
critical to operations as it handles the City's financial processes and Human Resources
Management processes. Accurate and efficient use of these systems is crucial to the City’s
ability to operate and serve the public and ongoing support and training imperative during the
first couple of years.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Implementation of the Motion ERP and related HCM module are critical to the success of the
Fiscal Health Response Plan and long-term financial sustainability by allowing for better use of
resources through better information and reporting capabilities. Due to the critical nature of
this software to City operations this software needs to be properly resourced to support the
City.
Key Objectives: Making the Change Happen
Support City operations to benefit from the investment of the Motion ERP and HCM software.
Streamline processes throughout the organization by increasing efficiencies and reducing
redundancies. The system will also improve openness and transparency through enhanced
information access. Using contract resources also allows time to reach optimal system use and
then assess ongoing staffing needs.
2 Packet Pg. 166
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Motion Enterprise Resource Planning
Goal & Policy Criteria
1. On-going support of the Motion Enterprise Resource Planning and Human Capital
Management software
2. New ways of doing business
3. IT Strategic Plan
4. Fiscal Health Response Plan/Thoughtful Reorganizations
Major City Goal or Other Important Objective Addressed
Fiscal Sustainability and Responsibility
STAKEHOLDERS
All City employees
IMPLEMENTATION
Program Manager
1. Information Technology Manager
2. Finance Director
3. Human Resources Director
Project Team
1. Subject Matter Experts in Finance and Human Resources
2. Information Services Supervisor
3. Information Technology Manager
Implementation Plan
1. Hire ongoing and contract staff in July of 2019.
2. Implement MOTION Budget module by November 2019.
3. Complete all phases of MOTION HCM implementation by February 2020.
4. Continue End-User training and support through June 2021 to maximize system use.
5. Assess effectiveness of the MOTION ERP and HCM system and continue ongoing support
6. Provide internal consulting regarding thoughtful reorganizations and implementation of
the Organization of the Future.
3 Packet Pg. 167
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Sequestration Study and Carbon Farming Pilot Project
Function Program
30 - Environmental Health & Open Space 11250 - Office of Sustainability
SUMMARY OF CHANGE
Carbon Farming Pilot Program - Carbon farming provides the potential to store carbon in the
ground through intentional land management approaches. Given the City's open space,
significant potential exists to simultaneously use the lands for carbon sequestration while
enhancing ecological health and function. This item would fund a plan and pilot project to
identify the carbon sequestration potential given local climate, soil type, and existing land
management practices. A successful outcome would guide future investments in open space
maintenance and enhancement.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 35,000 35,000
Sub-Total: 2020 35,000 35,000
Total 35,000 35,000
SERVICE LEVEL IMPACT
This request enhances staff capacity and technical expertise with consultant support.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
In September 2018, City Council supported a framework of five pillars that provide a pathway
to carbon neutrality by 2035. One of these pillars is to enact measures to achieve carbon
sequestration, or negative emissions, in the context of the City’s overall greenhouse gas (GHG)
inventory.
Key Objectives: Making the Change Happen
1. Produce a carbon farm plan document intended for both internal and external audiences,
as well as a pilot project, that will assist the City to:
• Identify the value and potential of carbon farming;
• Identify locations within existing City Open Space that are appropriate for prospective
carbon farming / grazing practices in consideration and deference to other management
4 Packet Pg. 168
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Sequestration Study and Carbon Farming Pilot Project
objectives (e.g. sensitive resources areas that should be avoided);
• Understand the long-term potential for carbon sequestration;
• Understand the cost / benefit and feasibility of cond ucting carbon farming at a larger
scale;
• Identify the partnerships and farming / grazing infrastructure and equipment needed;
• Identify monitoring and assessment methodologies;
• Identify opportunities for strategic collaboration, financial and human resources, and
long-term organization and funding needs.
Goal & Policy Criteria
1. General Plan – Conservation and Open Space Element
2. Climate Action Plan
3. 2019-21 Climate Action Major City Goal
4. Open Space Maintenance Plan and property-specific Conservation Plans
Major City Goal or Other Important Objective Addressed
1. Climate Action
STAKEHOLDERS
1. Local non-profits and partners
2. Open space users
3. Residents
4. Businesses
IMPLEMENTATION
Program Manager
1. Natural Resources Manager
2. Recreation Supervisor
Project Team
Open Space Team
Implementation Plan
The Carbon Farm Plan and pilot project will provide a framework to help develop a strategic
approach and articulate the value and long-term potential for carbon sequestration in City
Open Space pursuant to the Climate Action Major City Goal. Consultant services will be used to
prepare the plan in conjunction with City staff in 2019-20, which will be followed by a small-
scale pilot project at a selected City Open Space property.
5 Packet Pg. 169
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Sustainability Internship Program
Function Program
30 - Environmental Health & Open Space 11250 - Office of Sustainability
SUMMARY OF CHANGE
The internship program would provide 1,000 hours of intern work and requires minor
additional funding for materials and supplies. The Office of Sustainability has received
numerous requests for internship from extremely qualified individuals. This program would
allow the City to benefit from these students and would provide the capacity required to
respond to unexpected work efforts that arise out of the Major City Goal work program and/or
out of the Climate Action Plan update.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7014 14,000 14,000
2020 100 7843 1,000 1,000
Sub-Total: 2020 15,000 15,000
2021 100 7014 14,000 14,000
2021 100 7843 1,000 1,000
Sub-Total: 2021 15,000 15,000
Total 30,000 30,000
SERVICE LEVEL IMPACT
This request enhances staff capacity and technical expertise.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The climate crisis requires aggressive and ambitious climate action. In September of 2018,
Council directed staff to update the Climate Action Plan to achieve carbon neutrality by 2035.
The importance of this work was further confirmed by unanimous council action to include
Climate Action as a Major City Goal for 2019-21. The breadth and depth of work required to
achieve this target requires additional staff resources.
6 Packet Pg. 170
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Sustainability Internship Program
Key Objectives: Making the Change Happen
1. Provide staff capacity to complete Major City Goal work program
2. Provide “bridge” resources to fully understand staffing needs ahead of the Climate Action
Plan update and the 2021-23 Financial Plan
3. Provide value to the agency by capturing the substantial talent and enthusiasm of Cal Poly
students
4. Establish formal sustainability linkages between the campus and the City
5. Provide mentorship to emerging climate leaders
Goal & Policy Criteria
1. General Plan
2. Climate Action Plan
3. 2019-21 Climate Action Major City Goal
Major City Goal or Other Important Objective Addressed
Climate Action
STAKEHOLDERS
1. SLO Climate Coalition
2. Benefitting City departments
3. Local non-profits
4. Residents
5. Businesses
IMPLEMENTATION
Program Manager
1. Sustainability Manager
2. Natural Resource Manager
Project Team
1. Sustainability Manager
2. Natural Resource Manager
Implementation Plan
The Sustainability Intern would provide task support for the Climate Action Major City Goal, as
well as unexpected tasks that arise from the Climate Action Plan (to be adopted in Fall of
2019).
7 Packet Pg. 171
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Transportation Electrification Strategic Plan
Function Program
20 - Infrastructure & Transportation 50600 - Parking Operations/Maint.
20 - Infrastructure & Transportation 50700 - Transit Operations/Maint.
30 - Environmental Health & Open Space 11250 - Office of Sustainability
SUMMARY OF CHANGE
The City has achieved initial successes with electric vehicle charging, including installation of 19
chargers at the Marsh Street Garage, projects identified in this Financial Plan to install
additional chargers for fleet and the public at 919 Palm, and EV charger installation
requirements in the Zoning Code Update. It is now time to develop a strategic plan to identify
significant questions that have been raised as a result of these early successes, including "EV
charger build out" goals, fleet electrification goals, a road map for transit electrification,
signage and way finding strategies, pricing, communication, etc. The Climate Action Plan will
provide initial technical support and the SLO Climate Coa lition will assist with development
and will build off other adopted plans in the US. Consultant funding will be required to assist
with deeper technical analysis related to reviewing opportunity sites in the City and to "peer
review" the City's draft plan.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 10,000 10,000
2020 510 7227 10,000 10,000
2020 530 7227 10,000 10,000
Sub-Total: 2020 30,000 30,000
Total 30,000 30,000
SERVICE LEVEL IMPACT
This request enhances staff capacity and technical expertise.
8 Packet Pg. 172
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Transportation Electrification Strategic Plan
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The climate crisis requires aggressive and ambitious climate action. In September of 2018,
Council directed staff to update the Climate Action Plan to achieve carbon neutrality by 2035.
The importance of this work was further confirmed by unanimous council action to include
Climate Action as a Major City Goal for 2019-21. Transportation is a major source of GHG
emissions and an important aspect to achieve the City’s climate targets is to address this in a
feasible, time-bound and cost-effective way.
Key Objectives: Making the Change Happen
1. Create a resource to identify cost-effective and strategic actions that the City can take to
promote and implement transportation electrification
2. Provide “bridge” resources to fully understand staffing needs ahead of the Climate Action
Plan update and the 2021-23 Financial Plan
Goal & Policy Criteria
1. General Plan
2. Zoning Code
3. Climate Action Plan
Major City Goal or Other Important Objective Addressed
1. Climate Action
2. Sustainable Transportation
STAKEHOLDERS
1. SLO Climate Coalition
2. Benefitting City departments
3. Local non-profits
4. Residents
5. Businesses
6. Transit Department
7. SLOAPCD
8. SLOCOG
IMPLEMENTATION
Program Manager
Sustainability Manager
Project Team
9 Packet Pg. 173
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Transportation Electrification Strategic Plan
Office of Sustainability and Green Team
Implementation Plan
The strategic plan would provide task support for the Climate Action and Sustainable
Transportation Major City Goals
10 Packet Pg. 174
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Shop Local Program
Function Program
35 - Fiscal Health & Governance 11200 - Economic Development
SUMMARY OF CHANGE
Development and implementation of a Shop Local program for localized economic
development using funds from SB 1090.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 30,000 30,000
Sub-Total: 2020 30,000 30,000
Total 30,000 30,000
SERVICE LEVEL IMPACT
This request enhances connectivity with local business owners, business member
organizations and the community and projects to increase tax revenue.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
1. The culture of shopping has changed with the ease of access to online retailers and
consumers wanting more “experience-based” engagement when shopping.
2. Perception of a high rate of commercial vacancies.
3. National retailers closing stores.
Key Objectives: Making the Change Happen
1. Promotion of all businesses in the city – not just in the downtown – to stimulate patronage
of brick and mortar retailers.
2. Relationship building between the economic development program and business owners.
Goal & Policy Criteria
1. Economic Development Strategic Plan
2. Fiscal Health
3. San Luis Obispo Shopping
Major City Goal or Other Important Objective Addressed
11 Packet Pg. 175
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Shop Local Program
1. Downtown Vitality
2. Fiscal Sustainability and Responsibility
STAKEHOLDERS
1. Local retailers
2. Downtown SLO
3. SLO Chamber of Commerce
IMPLEMENTATION
Program Manager
Economic Development Manager
Project Team
Economic Development Manager
Implementation Plan
1. Engage stakeholders in the development of the program.
2. Education and outreach to local consumers.
3. Produce the necessary collateral to support marketing efforts.
12 Packet Pg. 176
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Urban Forest Master Plan
Function Program
30 - Environmental Health & Open Space 11250 - Office of Sustainability
SUMMARY OF CHANGE
An Urban Forest Master Plan would allow the City to establish and formalize a strategic
approach to managing its urban forest to understand the long-term potential to optimize
natural systems benefits, maximize carbon sequestration, and enhance quality of life in the
community.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 35,000 35,000
Sub-Total: 2020 35,000 35,000
Total 35,000 35,000
SERVICE LEVEL IMPACT
This request enhances staff capacity and technical expertise with consultant support.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The City’s urban forest is a prized resource and contributes to community and environmental
health. The urban forest can contribute to the greenhouse gas reduction and community
adaptation. Carbon sequestration is one of the five pillars of the City’s Climate Action Plan, and
long-term, strategic thinking will maximize the cost effectiveness of pursuing this effort.
However, the urban forest is also exposed to the impacts of climate change including drought.
Given the dynamic nature of the assets that comprise the urban forest, a strategic approach to
its management and enhancement is critical.
Key Objectives: Making the Change Happen
1. Provide framework for a strategic approach to managing City’s urban forest
2. Dedicate resources to understanding the long-term potential and maximize effectiveness
of tree planting efforts
3. Support existing grant and volunteer efforts to plant new trees
13 Packet Pg. 177
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Urban Forest Master Plan
Goal & Policy Criteria
1. General Plan
2. Climate Action Plan
3. 2019-21 Climate Action Major City Goal
Major City Goal or Other Important Objective Addressed
1. Climate Action
2. Downtown Vitality
STAKEHOLDERS
1. SLO Climate Coalition
2. Benefitting City departments
3. Local non-profits
4. Residents
5. Businesses
6. California ReLeaf
IMPLEMENTATION
Program Manager
1. City Arborist
2. Natural Resources Manager
Project Team
1. Urban Forestry Team
2. Office of Sustainability and Green Team
Implementation Plan
The Master Plan would provide a framework to help develop a strategic approach to carbon
sequestration and provide task support for the Climate Action and Downtown Vitality Major
City Goals
14 Packet Pg. 178
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Business Attraction and Retention Program
Function Program
35 - Fiscal Health & Governance 11200 - Economic Development
SUMMARY OF CHANGE
Development and implementation of a business attraction and retention program using funds
from SB 1090 in support of both local and regional efforts to boost head of household jobs.
FISCAL IMPACT
Funding for this item will come from SB 1090.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2021 100 7227 70,000 70,000
Sub-Total: 2021 70,000 70,000
Total 70,000 70,000
SERVICE LEVEL IMPACT
Fulfill the strategic initiatives of the economic development program in business retention and
expansion assistance, business recruitment, and site selection assistance for new and existing
businesses.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Nurturing local businesses is one of the economic development program's most important
goals. With the closure of Diablo Canyon Power Plant, there is a need for a robust business
program that supports growing and up and coming industries.
Key Objectives: Making the Change Happen
1. Grow the number of businesses in the City.
2. Continue to develop policies that make doing business in the City attractive.
Goal & Policy Criteria
1. Economic Development Strategic Plan
2. Fiscal Health
Major City Goal or Other Important Objective Addressed
15 Packet Pg. 179
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Business Attraction and Retention Program
1. Downtown Vitality
2. Fiscal Sustainability and Responsibility
STAKEHOLDERS
1. Cal Poly
2. Cuesta College
3. Business community and organizations (Hourglass Project, EVC, Chambers of
Commerce)
4. Residential and commercial developers
5. Realtors and property managers
IMPLEMENTATION
Program Manager
Economic Development Manager
Project Team
Implementation Plan
1. Secure consultant contract
2. Engage stakeholders in the development of the program
16 Packet Pg. 180
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Administration and IT
Title: Municipal Operations Solid Waste Reduction Plan
Function Program
35 - Fiscal Health & Governance 10100 - City Administration
SUMMARY OF CHANGE
This item would fund a plan to establish baseline data in terms of types and volume of
municipal solid waste, set reduction targets by type, establish monitoring and reporting
methodologies, and identify best management practices for implementation. A successful
outcome would guide future solid waste reduction infrastructure investments, procurement
policies, vendor contracting terms, and would place a strong emphasis on employee outreach
and education.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 25,000 25,000
Sub-Total: 2020 25,000 25,000
Total 25,000 25,000
SERVICE LEVEL IMPACT
This request enhances staff capacity and technical expertise with consultant support.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
In September 2018, City Council supported a framework of five pillars that provide a pathway
to carbon neutrality by 2035. One of these pillars is to enact measures to achieve zero waste
in the context of the City’s overall greenhouse gas (GHG) inventory; this focus is primarily
driven by the need to enact methane emissions reductions associated with organic green
waste. Separately, Council has adopted ordinances regarding enhanced polystyrene (EPS),
single-use plastic bottles, straws upon request, and th e City is also subject to the county-wide
ordinance for plastic bags.
Despite this policy guidance, confusion, misunderstanding, and non-compliance persists
among both City staff and its vendors.
Key Objectives: Making the Change Happen
17 Packet Pg. 181
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Administration and IT
Title: Municipal Operations Solid Waste Reduction Plan
Produce a Municipal Operations Solid Waste Reduction Plan document will assist the City to:
• Set the stage to lead by example in the community on solid waste reduction;
• Articulate the value and necessity of solid waste reduction among its employees and
vendors;
• Set reduction targets by type and establish monitoring and reporting methodologies;
• Identify appropriate infrastructure investments (i.e. sorted receptables, waste wheelers, etc.)
to assist in achieving solid waste reduction targets;
• Identify appropriate procurement and environmentally-preferred purchasing policy updates,
if needed;
• Update vendor contracting terms (e.g. janitorial services and parks / landscape maintenance
services);
• Identify partnerships and opportunities for strategic collaboration;
• Develop a robust employee and vendor training and education program, together with clear
procedures for ongoing and sustained solid waste reduction
Goal & Policy Criteria
• General Plan – Conservation and Open Space Element
• Climate Action Plan
• 2019-21 Climate Action Major City Goal
Major City Goal or Other Important Objective Addressed
• Climate Action
STAKEHOLDERS
• Employees
• Vendors
• IWMA
• Waste Connections - Cold Canyon
• The Garbage Company
• Hitachi Zosen Inova – anaerobic digester
IMPLEMENTATION
Program Manager
Utilities Services Manager
Project Team
Utilities Deparment
Public Works
Office of Sustainability
18 Packet Pg. 182
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Administration and IT
Title: Municipal Operations Solid Waste Reduction Plan
Implementation Plan
The Municipal Operations Solid Waste Reduction Plan will provide a framework to help
develop a strategic approach and articulate the value of best practices for solid waste
management to employees and vendors.
19 Packet Pg. 183
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Building Electrification Program
Function Program
30 - Environmental Health & Open Space 11250 - Office of Sustainability
SUMMARY OF CHANGE
A top near-term priority for climate action plan implementation will be the development of a
building electrification program. Given the legal, technical, and financial nuance of a program
of this nature, consultant support will be required.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 50,000 50,000
Sub-Total: 2020 50,000 50,000
Total 50,000 50,000
SERVICE LEVEL IMPACT
This request enhances staff capacity and technical expertise.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The climate crisis requires aggressive and ambitious climate action. In September of 2018,
Council directed staff to update the Climate Action Plan to achieve carbon neutrality by 2035.
The importance of this work was further confirmed by unanimous council action to include
Climate Action as a Major City Goal for 2019-21. Existing buildings are a major source of GHG
emissions and an important aspect to achieve the City’s climate targets is to address this in a
feasible, time-bound, and cost-effective way.
Key Objectives: Making the Change Happen
Identify appropriate, actionable strategies for the City to promote, support, and/or implement
building retrofits to reduce greenhouse gas emissions.
Goal & Policy Criteria
1. General Plan
2. Building Code
3. Climate Action Plan
20 Packet Pg. 184
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Building Electrification Program
4. 2019-21 Climate Action Major City Goal
Major City Goal or Other Important Objective Addressed
1. Climate Action
STAKEHOLDERS
1. Building and Industry Trade Groups
2. Realtors
3. Chamber of Commerce
4. SLO Climate Coalition
5. Residents
6. Businesses
IMPLEMENTATION
Program Manager
1. Sustainability Manager
2. Deputy Director of Community Development
Project Team
1. Office of Sustainability
2. Community Development Department
3. Green Team
Implementation Plan
The retrofit program would identify appropriate, actionable strategies for the City and provide
task support for the Climate Action Major City Goal.
21 Packet Pg. 185
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Attorney
Title: Temporary Staffing Funds During Transition and Evaluation Period
Function Program
35 - Fiscal Health & Governance 15100 - City Attorney
SUMMARY OF CHANGE
Supplemental legal support during recruitment, transition and training of new Assistant City Attorney and to
maintain supplemental contract staffing needed to continue the ongoing level of service provided in light of
significant new legal support needs. Additional administrative support for process improvements and clearing
of filing/records backlog.
FISCAL IMPACT
Continue the previously approved temporary staffing allocation in the amount of $150,000 during the
upcoming financial plan period.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7014 150,000 150,000
Sub-Total: 2020 150,000 150,000
2021 100 7014 150,000 150,000
Sub-Total: 2021 150,000 150,000
Total 300,000 300,000
SERVICE LEVEL IMPACT
Even before the transition to a new Assistant City Attorney occurred, the service and time demands on the
two full-time attorneys in the Department had increased so significantly that temporary staffing funding was
approved for three years, ending in June 2019. During those three years, the increased demand proved to be
not temporary, but a new normal, higher level of workload. Approval of the SOBC will allow the Department
the capacity to address ongoing and emerging legal services demands. Should this funding not be approved,
simultaneous with the need to train a new Assistant City Attorney from a pool of lesser experienced
applicants, responsiveness to ongoing demands and ability to competently and thoroughly deliver legal
services will be significantly compromised. The delivery model will need to shift to a reactive triage mo del,
with requests and demands that are not driven by statutory, regulatory or court deadlines taking low priority
and expectations of involvement in major projects by the City Attorney's office being revisited and
reprioritized.
The administrative work currently being done to improve efficiency and clear out old files would end and the
office's ability to locate files and get through claims, appeals and criminal filings would significantly decrease.
Historically the office has proven an ability to get thr ough its administrative workload (invoices, budget,
22 Packet Pg. 186
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Attorney
Title: Temporary Staffing Funds During Transition and Evaluation Period
correspondence, claims, criminal filings, appeals, etc.) with a single full -time, administrative staff member,
but that belies the large backlog of supporting work that was not being completed. This backl og would again
begin to increase should the funding not be approved.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Current recruitment, and imminent transition and training of new Assistant City Attorney; the desire to
maintain supplemental contract staffing currently supporting the ongoing level of service provided in light of
significant new legal support needs, including Community Choice Energy, Development Agreement and CFD
implementation, PBID implementation support, Cannabis regulatory support, homeless issues working group
support, and WRRF Project support; administrative and filing backlog and outdated systems (seemingly going
back decades) that have been continually deferred while the Department addresses consistently higher
priority ongoing legal tasks to sustain City functions without the administrative support/office management
resources to support ongoing/core legal services, manage routine administrative demands and accomplish
transitions to electronic file management and storage systems. The scope, diversity and complexity of
substantive legal issues requiring advice related to the significant CIP projects, development review activity
and major city programs and initiatives simply is not manageable by the current regular staffing in the City
Attorney's office without supplemental legal advisory and transactional resources. Without additional
administrative support, administrative and filing backlogs will continue to compound while support staff is
directed toward more substantive legal support demands.
Key Objectives: Making the Change Happen
Reliable and sustainable legal support for major city goals and significant projects, programs and initiatives.
During the first year of the new financial plan, supplemental attorney resources will be used almost
exclusively to maintain responsiveness to existing and forthcoming significant project and program legal
support needs, as referenced above, while a new Assistant City Attorney is hired and trained. Supplemental
administrative resources will permit the Department to continue process improvements (e.g., claims
processing and records management) in order to make the long-term workload sustainable by regular staff
and accurately assess longer term additional staffing needs. Supplemental staffing will also provide support
for additional analysis of programs and regulations to facilitate affordable housing production,
education/outreach and code enforcement related to the City's mobile home rent control ordinance with the
objective of increased awareness and compliance to maintain and enhance affordable housing stock, as well
as consolidation and streamlining the processing of administrative citation appeals, currently divided
between PD Neighborhood Services and the City Attorney's Department.
Goal & Policy Criteria
Major City Goal or Other Important Objective Addressed
Though not the lead on any project, the City Attorney provides legal advice and support on aspects of many,
if not all, City projects undertaken to achieve Major City Goals and Objectives. Specifically, this funding
impacts the current Major City Goals in the following ways:
23 Packet Pg. 187
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Attorney
Title: Temporary Staffing Funds During Transition and Evaluation Period
Fiscal Sustainability and Responsibility - Further record-keeping and process efficiencies to allow regular
Department staff to meet the service needs of City staff and the community and enhance the ef ficiency of
public records review, production and self-service accessibility. Legal advice and support of cannabis
permitting, taxing and regulatory processes.
Housing - Development agreements and CFD implementation, Cal Poly Master Plan legal review, enf orcement
and compliance support of affordable housing agreements and mobile home rent control ordinance.
Climate Action - Legal advice and support of Community Choice Energy implementation and carbon reduction
policies, programs and projects.
Transportation - Legal advice, support of development agreement implementations/infrastructure
reimbursements.
Downtown Vitality - Legal advice and support of PBID implementation, homeless issues working group,
further streamlining of administrative citation appeal and criminal citation filing processes, downtown
development review.
STAKEHOLDERS
All City Departments requiring legal advice and support. Community and public agency partners with legal or
contractual relationships with the City. Major development applicants requiring timely and complete City
legal review of contractual documents and/or support of services districts or reimbursement obligations.
IMPLEMENTATION
Program Manager
Christine Dietrick
Project Team
Assistant City Attorney; Legal Assistant/Paralegal; Two part-time Legal Assistants; contract/temporary
attorney support.
Implementation Plan
Continuation of current supplemental legal resources via contracts or temporary employment.
Evaluation of ongoing supplemental legal resource needs.
Implementation of updated processes for file management and public records accessibility.
Alternatives
Consider addition of new regular legal and administrative support staff to meet anticipated ongoing City legal
24 Packet Pg. 188
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Attorney
Title: Temporary Staffing Funds During Transition and Evaluation Period
demands.
Consider alternative service delivery models (e.g., contract City Attorney services).
25 Packet Pg. 189
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Housing MCG Resource #1
Function Program
25 - Community & Neighborhood Livability 40200 - Development Review
SUMMARY OF CHANGE
Housing MCG Resource #1: Contract position to back-fill the work of the Associate planner that
will be assigned as the role of Housing Major City Goal Project Manager.
FISCAL IMPACT
Contract salary cost of $112,760 per year for two years.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7010 112,760 112,760
Sub-Total: 2020 112,760 112,760
2021 100 7010 112,760 112,760
Sub-Total: 2021 112,760 112,760
Total 225,520 225,520
SERVICE LEVEL IMPACT
Enable City staff to complete the Major City Goal work program, including a Housing Element
Update, with in-house resources. This temporary position would back-fill the work of the
Associate Planner that will be assigned the role of Housing Major City Goal project manager.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Housing Major City Goal Work Program including a Housing Element Update that is due
December 2020.
Key Objectives: Making the Change Happen
Enable effective management of the City’s Affordable Housing Program while implementing
the Major City Goal tasks, including completion of an update of the City’s Housing Element in
compliance with HCD regulations.
Goal & Policy Criteria
Production of affordable housing and re-certification of the City’s Housing Element will qualify
the City for a variety of housing grant and program opportunities.
26 Packet Pg. 190
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Housing MCG Resource #1
Major City Goal or Other Important Objective Addressed
Housing Production
STAKEHOLDERS
Residents, elected officials, homebuilders, non-profit housing developers, local business
owners and employees
IMPLEMENTATION
Program Manager
Community Development
Project Team
Planning and Engineering
Implementation Plan
See Housing Major City Goal
27 Packet Pg. 191
Item 13
SIGNIFICANT OPERATING PROGRAM CHANGE
Department Name: Community Development
Title: Maintain Existing Contract Permit Technician at the Building Counter
Mar 15, 2019 10:57 AM Page 23
Function Program
25 - Community & Neighborhood Livability 40200 - Development Review
FISCAL IMPACT
Contract salary cost of $70,650 for year one. Costs will be covered using the development services
designation.
Fiscal
Year
Fund
Account
FTEs
One-Time
Ongoing
Revenue
Offset
Net Cost
2020 100 7012 70,650 70,650
Sub-Total: 2020 70,650 70,650
Total 70,650 70,650
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Elevated activity at the building counter has resulted in the use of a variety of staff at the building counter
to assist customers with submitting applications and conducting quick plan reviews over the counter.
Key Objectives: Making the Change Happen
Management of workflow associated with building permits.
Goal & Policy Criteria
The activity being supported is based on 100% cost recovery
Major City Goal or Other Important Objective Addressed
Housing Production
STAKEHOLDERS
Residents, elected officials, homebuilders, non-profit housing developers, local business owners and
employees
SERVICE LEVEL IMPACT
Permit activity at the building counter necessitates staffing by two permit technicians to provide
customers with the expected level of service.
SUMMARY OF CHANGE
Maintain Existing Contract Permit Technician at the Building Counter due to high levels of development
activity.
28 Packet Pg. 192
Item 13
SIGNIFICANT OPERATING PROGRAM CHANGE
Department Name: Community Development
Title: Maintain Existing Contract Permit Technician at the Building Counter
Mar 15, 2019 10:57 AM Page 24
IMPLEMENTATION
Program Manager
Community Development
29 Packet Pg. 193
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Temporary Engineering Consultant
Function Program
25 - Community & Neighborhood Livability 40200 - Development Review
SUMMARY OF CHANGE
Temporary Engineering Contractor (.5 FTE) to assist with high levels of plan check activity for
housing tracts.
FISCAL IMPACT
Temporary salary cost of $75,000 for one year. Costs will be covered by the development
services designation.
Operating Expense: One-time costs of $0 in 2020 and ongoing costs of $75,000.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7014 75,000 75,000
Sub-Total: 2020 75,000 75,000
Total 75,000 75,000
SERVICE LEVEL IMPACT
Use of a half-time, temporary civil engineer facilitates the ability of regular staff in the Planning
and Engineering Division to plan check grading plans and other aspects of major housing tracts
currently entitled and moving through the permit process. This position is hired at the
Engineering Consultant level and assignments will be made accordingly.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Major housing tracts in the Avila Ranch, San Luis Ranch, Orcutt Area, Margarita Area and infill
development creates a significant demand on the time of civil engineers performing plan check
duties. The use of temporary staff to backfill regular staff ensures that the workload can be
accomplished in the most effective manner possible. Hiring temporary staff has proven to be
more cost effective than using consultants for this service.
Key Objectives: Making the Change Happen
Provide effective plan check services through the Engineering group to enable housing
production to move forward.
30 Packet Pg. 194
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Temporary Engineering Consultant
Goal & Policy Criteria
The activity being supported is based on 100% cost recovery
Major City Goal or Other Important Objective Addressed
Housing Production
STAKEHOLDERS
Residents, elected officials, homebuilders, non-profit housing developers, local business
owners and employees
IMPLEMENTATION
Program Manager
Community Development
Project Team
Planning and Engineering
Implementation Plan
Ongoing Program
31 Packet Pg. 195
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Housing MCG Resource #2
Function Program
25 - Community & Neighborhood Livability 40200 - Development Review
SUMMARY OF CHANGE
Housing MCG Resource #2: Contract position to back-fill the work of the Housing Coordinator.
FISCAL IMPACT
Contract salary cost of $99,037 per year for two years.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7012 99,037 99,037
Sub-Total: 2020 99,037 99,037
2021 100 7012 99,037 99,037
Sub-Total: 2021 99,037 99,037
Total 198,074 198,074
SERVICE LEVEL IMPACT
Enable City staff to complete the Major City Goal work program, including a Housing Element
Update, with in house resources. This temporary position would back-fill the work of the
Housing Coordinator to ensure ongoing, effective management of the City’s affordable housing
program while the additional work associated with the Major City Goal is in progress.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Housing Major City Goal Work Program including a Housing Element Update - Due December
2020.
Key Objectives: Making the Change Happen
Enable effective management of the City’s Affordable Housing Program while implementing
the Major City Goal tasks, including completion of an update of the City’s Housing Element in
compliance with HCD regulations.
Goal & Policy Criteria
Production of affordable housing and re-certification of the City’s Housing Element will qualify
the City for a variety of housing grant and program opportunities
32 Packet Pg. 196
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Housing MCG Resource #2
Major City Goal or Other Important Objective Addressed
Housing Production
STAKEHOLDERS
Residents, elected officials, homebuilders, non-profit housing developers, local business
owners and employees
IMPLEMENTATION
Program Manager
Community Development
Project Team
Planning and Engineering
Implementation Plan
See Housing Major City Goal
33 Packet Pg. 197
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Temporary Civil Engineer – Housing Tracts
Function Program
25 - Community & Neighborhood Livability 40200 - Development Review
SUMMARY OF CHANGE
Temporary Civil Engineer (.5 FTE) to assist with high levels of plan check activity for housing
tracts.
FISCAL IMPACT
Temporary salary cost of $45,824 in year one. Costs will be covered using development
services designation.
Operating Expense: One-time costs of $45,824 in 2020 and ongoing costs of $0.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7014 45,824 45,824
Sub-Total: 2020 45,824 45,824
Total 45,824 45,824
SERVICE LEVEL IMPACT
Use of a half-time, temporary civil engineer facilitates the ability of regular staff in the Planning
and Engineering Division to plan check grading plans and other aspects of major housing tracts
currently entitled and moving through the permit process. This position is hired at the City
Worker 9 level and assignments will be made accordingly.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Major housing tracts in the Avila Ranch, San Luis Ranch, Orcutt Area, Margarita Area and infill
development creates a significant demand on the time of civil engineers performing plan check
duties. The use of temporary staff to back-fill regular staff ensures that the workload can be
accomplished in the most effective manner possible. Hiring temporary staff has proven to be
more cost effective than using consultants for this service.
Key Objectives: Making the Change Happen
Provide effective plan check services through the Engineering group to enable housing
production to move forward.
34 Packet Pg. 198
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Temporary Civil Engineer – Housing Tracts
Goal & Policy Criteria
The activity being supported is based on 100% cost recovery.
Major City Goal or Other Important Objective Addressed
Housing Production
STAKEHOLDERS
Residents, elected officials, homebuilders, non-profit housing developers, local business
owners and employees
IMPLEMENTATION
Program Manager
Community Development
Project Team
Planning and Engineering
Implementation Plan
Ongoing program
35 Packet Pg. 199
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Communications Consultant
Function Program
25 - Community & Neighborhood Livability 40200 - Development Review
SUMMARY OF CHANGE
Bring on board a Communications Consultant that has specific experience in producing
interactive public workshops to assist in public outreach for the Housing Element and Safety
Element updates.
FISCAL IMPACT
Consultant Services cost of $25,000 per year for two years.
Operating Expense: One-time costs of $25,000 in 2020 and ongoing costs of $0.
Operating Expense: One-time costs of $25,000 in 2021 and ongoing costs of $0.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 25,000 25,000
Sub-Total: 2020 25,000 25,000
2021 100 7227 25,000 25,000
Sub-Total: 2021 25,000 25,000
Total 50,000 50,000
SERVICE LEVEL IMPACT
The Housing Element and Safety Element updates will involve a substantial amount of public
outreach at the “Collaborate” level of engagement. The workshops and other tools that will be
used to support this collaboration will benefit from a communications consultant with specific
experience in producing interactive public workshops, presentations, and other collateral to
leverage the work of staff in implementing these important projects.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The Housing Production and Climate Action Major City Goals include updates to two major
General Plan Elements.
Key Objectives: Making the Change Happen
36 Packet Pg. 200
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Communications Consultant
Effectively engage with the public at a “collaborate” level of outreach.
Goal & Policy Criteria
The effort supports the City’s ability to effectively update two major General Plan Elements
and complete Major City Goal work programs.
Major City Goal or Other Important Objective Addressed
Housing Production and Climate Action
STAKEHOLDERS
Residents, elected officials, home builders, non-profit housing developers, local business
owners and employees
IMPLEMENTATION
Program Manager
Community Development
Project Team
Planning and Engineering
Implementation Plan
See Housing Production and Climate Action Major City Goal.
37 Packet Pg. 201
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Housing Major City Goal Intern
Function Program
25 - Community & Neighborhood Livability 40200 - Development Review
SUMMARY OF CHANGE
Housing Major City Goal Intern
\FISCAL IMPACT
Temporary salary costs of $12,000 per year for two years.
Operating Expense: One-time costs of $12,000 in 2020 and ongoing costs of $0.
Operating Expense: One-time costs of $12,000 in 2021 and ongoing costs of $0.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7014 12,000 12,000
Sub-Total: 2020 12,000 12,000
2021 100 7014 12,000 12,000
Sub-Total: 2021 12,000 12,000
Total 24,000 24,000
SERVICE LEVEL IMPACT
Enable City staff to complete the Major City Goal work program, including a Housing Element
Update, with in house resources. This temporary position is a cost-effective way to support the
work of the Housing Major City Goal Project Manager and Housing Coordinator.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Housing Major City Goal Work Program including a Housing Element Update that is due
December 2020.
Key Objectives: Making the Change Happen
Enable effective management of the City’s Affordable Housing Program while implementing
the Major City Goal tasks, including completion of an update of the City’s Housing Element in
compliance with HCD regulations.
Goal & Policy Criteria
38 Packet Pg. 202
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Housing Major City Goal Intern
Production of affordable housing and re-certification of the City’s Housing Element will qualify
the City for a variety of housing grant and program opportunities.
Major City Goal or Other Important Objective Addressed
Housing production
STAKEHOLDERS
Residents, elected officials, homebuilders, non-profit housing developers, local business
owners and employees
IMPLEMENTATION
Program Manager
Community Development
Project Team
Planning and Engineering
Implementation Plan
See Housing Major City Goal
39 Packet Pg. 203
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Human Resources
Title: Improve Recruitment, Selection, and Succession Planning Efforts
Function Program
35 - Fiscal Health & Governance 30100 - Human Resources
SUMMARY OF CHANGE
Through the use of consultant services, the Human Resources department will continue efforts to improve
recruitment, selection, and succession planning processes to ensure they are free of barriers to diversity and
inclusion.
FISCAL IMPACT
There will be a one-time fiscal impact of $20,000 for each year of the 2019-21 Financial Plan for a total of
$40,000 anticipated to cover consultant costs to assist in identifying barriers to diversity and inclusivity in the
recruitment, selection, and succession planning efforts.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 20,000 20,000
Sub-Total: 2020 20,000 20,000
2021 100 7227 20,000 20,000
Sub-Total: 2021 20,000 20,000
Total 40,000 40,000
SERVICE LEVEL IMPACT
Improving recruitment, selection, and succession planning efforts will ensure equitable and inclusive
recruitment selection processes. Having more equitable and inclusive processes will lead to a better
organization which will result in better service to the community.
Stakeholders
All current and potential employees.
IMPLEMENTATION
Program Manager
Director of Human Resources
Project Team
HR Analyst – Class and Comp, HR Specialist - Recruitment
40 Packet Pg. 204
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Human Resources
Title: Improve Recruitment, Selection, and Succession Planning Efforts
Implementation Plan
1. Identify consultant appropriate to advise and train City of San Luis Obispo staff.
2. Develop detailed project plan.
3. Gather and analyze internal data relevant to recruitment and succession planning.
4. Identify barriers to diversity and inclusion in the recruitment, selection, and promotional processes.
5. Modify recruitment, selection, and promotional processes as appropriat e.
Alternatives
Do not pursue improving recruitment, selection, and succession planning efforts at this time through a
consultant. This alternative is not recommended as staff does not have the expertise or band-width to
identify and review barriers in these processes without additional expertise.
41 Packet Pg. 205
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police, Administration
Title: Cannabis Program Implementation
Function Program
10 - Community Safety 80300 - Investigations
26100 - Support Services
SUMMARY OF CHANGE
Increase staffing by one Police Officer position for the newly assigned Cannabis Detective. The
position and related equipment was considered in the fee development and will be covered by
Cannabis permit fees. Allocate funds collected through fees for other related cannabis
business services.
FISCAL IMPACT
The ongoing cost for one new FTE Cannabis Detective position estimated at $165,827 in FY
2019-20 and $171,610 in FY 2020-21 and will be covered by Cannabis permit fees.
Also funded by Cannabis fees are ongoing costs for officer overtime in the amount of $23,855
in FY 2019-20 and $24,332 in FY 2020-21. One-time costs for police officer safety and cannabis
regulation enforcement equipment will cost $25,500 in FY 2019-20.
Allocations of $120,000 in FY 2019-20 and $200,000 in FY 2020-21 are for other related
cannabis business services in Administration, Community Development, City Attorney, and
Finance departments that will be scaled according to timelines for businesses opening and
required services.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 44520 215,182 215,182
2020 100 7010 1 165,827 165,827
2020 100 7020 23,855 23,855
2020 100 7843 25,500 25,500
2020 100 7304 120,000 120,000 0
Sub-Total: 2020 145,500 189,682 355,182
2021 100 44520 195,942 -195,942
2021 100 7010 1 171,610 171,610
2021 100 7020 24,332 24,332
2021 100 7304 200,000 200,000 0
Sub-Total: 2021 200,000 195,942 395,942
42 Packet Pg. 206
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police, Administration
Title: Cannabis Program Implementation
Total 345,500 385,624 751,124
SERVICE LEVEL IMPACT
Adding this Police Officer FTE will ensure that Cannabis laws and policies are adhered to. If the
position is not back-filled, there will be an impact to current sworn staffing.
The allocation for other related services in various departments needed to provide the service
level to business accounted for in fees to properly implement the program.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Due to the introduction of cannabis related businesses in the City, the Police Department has
assigned one officer as a Cannabis Detective, who is solely responsible for creating and
developing the Cannabis Regulation Unit in association with other City and state departments.
This new assignment creates a vacancy in the Patrol unit and affects minimum staffing levels.
Due to a call for service increase of 28% over the last seven years, this position cannot be
absorbed with current staffing.
The Cannabis Detective’s role is to regulate, inspect, and enforce cannabis laws on legal
cannabis cultivations, store-front dispensaries, conversion laboratories, edible and infused
product testing facilities, and mobile dispensary delivery services to ensure compliance with
the law. This Officer is required to receive specialized training on the new cannabis regulations,
investigation of cannabis businesses, investigation of cultivation operations, OSHA approved
clandestine conversion laboratory investigation training with hazardous materials
certifications, develop a knowledge base of marijuana products and processes, and how to
develop and teach cannabis education programs to youths and adults. Since late 2018, the San
Luis Obispo Police Department has spent over 720 hours on Cannabis related activities.
Equipment related to this position includes the following; laptop, surveillance equipment,
office equipment and items for inspections.
The regulatory fees for cannabis businesses are collected to implement the program as
adopted by the City Council.
Key Objectives: Making the Change Happen
1. Enforce City policies and California laws as they relate to Cannabis business permits.
2. Provide essential resources to community, business owners and other City departments as it
relates to cannabis laws.
3. Provide proper training and guidance to cannabis business owners.
43 Packet Pg. 207
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police, Administration
Title: Cannabis Program Implementation
Goal & Policy Criteria
1. Cannabis Business Tax – Measure F-18
2. Cannabis City Ordinance – Municipal Code Chapter 9.10 and Chapter 17.99
Major City Goal or Other Important Objective Addressed
1. Fiscal Sustainability and Responsibility – passing Measure F-18 relates to economic
development and responsiveness.
STAKEHOLDERS
Downtown SLO, Chamber of Commerce, Cannabis Industry, all City departments, Community
IMPLEMENTATION
Program Manager
Administrative Captain/Economic Development Manager
Project Team
Detective Sergeant, Cannabis Detective, Citywide Cannabis Team
Implementation Plan
Recruit for position: July 2019
Conduct interviews and make selection: September 2019
Hire new Police Officer: January 2020
Scale use of resources for other business services as needed by the organization and business
community.
44 Packet Pg. 208
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police
Title: Downtown Sergeant & Field Service Technician
Function Program
10 - Community Safety 80200 - Patrol
SUMMARY OF CHANGE
Use Parking Enterprise Funds from the Garden Street Terrace Land Lease Agreement to
increase Police staffing by one Downtown Field Service Technician (FST) and a Downtown
Sergeant position.
FISCAL IMPACT
Funding a Field Service Technician (FST) and the Downtown Sergeant will be an ongoing cost
of $227,695 in FY 2019-20 and $227,695 in FY 2020-21. One-time costs associated with
equipment purchases will be $6,100 in FY 2019-20.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 611 56860 233,795 -233,795
2020 100 7010 227,695 227,695
2020 100 7875 6,100 6,100
Sub-Total: 2020 6,100 227,695 233,795
2021 611 56860 227,695 -227,695
2021 100 7010 227,695 227,695
Sub-Total: 2021 227,695 227,695
Total 6,100 455,390 461,490
SERVICE LEVEL IMPACT
Funding these positions will enhance police services downtown by providing support in
responding to non-emergency calls for service and increasing downtown supervision. These
positions will help to address the high number of calls for service within the City’s downtown
core and provide additional resources for business owners and citizens who enjoy San Luis
Obispo’s downtown.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
In 2017, to improve downtown vitality and safety, the department took an existing Sergeant
and reassigned the position to a “Downtown Sergeant”. This position oversees the following
45 Packet Pg. 209
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police
Title: Downtown Sergeant & Field Service Technician
resources and tasks:
• Four downtown bike officers
• Two CAT officers and one civilian mental health social worker
• Three swing shift patrol officers
• Relationships with Downtown SLO, Chamber of Commerce and citizens.
• Partnering with downtown entities, community development on development impacts, and
partnering with Tourism manager.
This re-assignment left unfilled Sergeant responsibilities within the Investigative Bureau which
have been amplified by the addition of cannabis activities. The department can no longer
sustain the workload in the Investigative Bureau with only one Sergeant. The department will
need to re-assign the downtown Sergeant back to the Investigative Bureau as a second
Sergeant.
Approving this request enables the department to pay for a downtown Sergeant using new
Parking Funds from the 99-year land lease agreement for the Garden Street Terraces project .
The Department will move the current Administrative Sergeant to the Downtown Sergeant
position and as a result, hire a Civilian Training Coordinator to fulfill the role previously filled by
the Administrative Sergeant.
The police department, on average, takes over 33,000 calls for service a year, translating
roughly into 1,000 calls for service per patrol officer. Of the 33,000 calls for service
approximately 5,000 are related to downtown and two of the top five calls for service locations
are directly related to downtown parking structures.
Staff has determined that 850 of the 5,000 downtown calls could be completed by an FST. The
department currently has one FST that handles 700 calls city-wide annually. The wide variety
of tasks completed by the FST are not all necessarily tracked as a call for service. Additionally,
the FST position is a more cost effective way to respond to non-emergency calls, compared to
a sworn officer position.
The Police Department in conjunction with Public Works has agreed to use funding from the
Garden Street Terrace Project and the Parking Fund for the Downtown Sergeant and a
Downtown Field Service Technician.
Key Objectives: Making the Change Happen
1. Increase service levels within the downtown corridor
2. Supplement existing Patrol services
3. Increase oversite and supervision within the downtown
4. Reduce harm to our citizens through crime prevention
5. Increase economic vitality
46 Packet Pg. 210
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police
Title: Downtown Sergeant & Field Service Technician
Goal & Policy Criteria
Parking Services program goal to promote economic and social vitality in the downtown core.
The addition of one FST and one downtown sergeant will assist by creating more services to
promote a safer downtown.
Major City Goal or Other Important Objective Addressed
1. Downtown Vitality. Continue to improve safety, infrastructure investment, and maintenance
in the Downtown and support Downtown Association’s proposal to consider a Downtown
improvement district.
2. Multi-Modal Transportation. Prioritize implementation of the Bicycle Master Plan,
pedestrian safety, and the Short-Range Transit Plan.
3. Fiscal Sustainability and Responsibility – new way of doing business and thoughtful
reorganization.
STAKEHOLDERS
Police department, visitors, Downtown business owners, community, City of San Luis Obispo
IMPLEMENTATION
Program Manager
Police Chief
Project Team
Police Chief, Operations Captain and Administrative Sergeant
Implementation Plan
Post opening for Field Service Technician (FST): July 2019
Hire and Train FST position: September 2019 – January 2020
Transition Admin. Sergeant to Investigations and provide required training: January 2020
47 Packet Pg. 211
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Office 365 & Server Operating Software
Function Program
20 - Infrastructure & Transportation 25300 - Network Services
SUMMARY OF CHANGE
Move ongoing Annual Office 365 software subscription and the Server Operating Software
from CIP to Operating Budget. The funding for Microsoft Office and the Server Operating
Software has been funded from the CIP budget and Finance has recommended that since this
is an operating expense, not an asset, that it should be accounted for in the operating budget.
This did allow for funding of additional projects in the CIP budget.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7229 139,000 139,000
Sub-Total: 2020 139,000 139,000
2021 100 7229 181,000 181,000
Sub-Total: 2021 181,000 181,000
Total 320,000 320,000
SERVICE LEVEL IMPACT
There is no service level impact to this change
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Implementing Finance best practices are driving the change of funding source
Key Objectives: Making the Change Happen
To properly categorize and fund these initiatives as they are not assets and shouldn’t be
dependent on capital improvement funding for ongoing licensing requirements.
Goal & Policy Criteria
Major City Goal or Other Important Objective Addressed
Fiscal Sustainability and Responsibility
48 Packet Pg. 212
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Office 365 & Server Operating Software
STAKEHOLDERS
1. Finance
2. Administration
3. IT
IMPLEMENTATION
Program Manager
IT Manager
Project Team
1. Deputy City Manager
2. IT Manager
3. Network Services Supervisor
4. Information Services Supervisor
5. Support Services Supervisor
Implementation Plan
1. June 2019 renew Microsoft Office 365 Enterprise Agreement
2. July 2020 Purchase Current Server Operating System licensing from Microsoft licensing
reseller utilizing cooperative purchasing agreement.
49 Packet Pg. 213
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Information Technology Reorganization
Function Program
20 - Infrastructure & Transportation 25300 - Network Services
20 - Infrastructure & Transportation 25450 - Geographic Info Services
SUMMARY OF CHANGE
The Administration and Information Technology Department is requesting reallocation of
existing 2018-19 salary funding from savings realized due to staff changes $65,459 (includes
retirements and internal hire) and $25,243 from IT Operating non -staffing budget. This request
will effectively utilize the Information Technology’s (IT) current base budget to reorganize the
IT Division. This thoughtful reorganization will position the IT division to better serve internal
users and the community now and into the future.
The three recommendations requested in the SOBC provide strategic organizational focus for
IT functions and service delivery are as follows:
1. Convert the Interim Network Technician position to a regular FTE Application System
Specialist. The position has been instrumental to complete and implement initiatives tied to
the City’s Enterprise Systems. This FTE will position the City to continue to support, train and
maintain the City’s SharePoint, Laserfiche and Cityworks enterprise applications an d the
administration of the City’s website. The salary cost will be covered by reallocating $25,243
from IT operating funds and funds from IT’s existing salary base.
2. Reclass the IT Support Services Supervisor to Administrative Analyst to align with current
responsibilities and duties. This is a net-zero change.
3. Convert existing EnerGov Application System Specialist Contract position to a regular full-
time employee utilizing fees collected from the IT Surcharge that is currently being assessed by
the Community Development Department. As of March 1, 2019, the fee amount collected is
$164,344 ($82,345, first year and $81,999 second year to date). 2018-19 will be the first year
collecting the IT surcharge for a full 12 months and is projected to collect a total of $110,000.
This position’s top step full compensation is $115,000. The current contract position is funded
at mid-step with a cost of $105,654. Community Development will be implementing an
approved .40 percent increase and at the current surcharge schedule the position is
sustainable into the future. Based on a recent study from other California municipalities, the
Community Development Department will be proposing that the IT Surcharge be adjusted to
better support the on-going needs of the position including the support and maintenance of
the EnerGov Permitting and Land Management system.
50 Packet Pg. 214
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Information Technology Reorganization
FISCAL IMPACT
This request would retain current salary and contract services budget levels in the IT division
and utilize savings to finance the Application System Specialist.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7010 25,243 25,243
2020 100 7227 -25,243 -25,243
Sub-Total: 2020
2021 100 7010 25,243 25,243
2021 100 7227 -25,243 -25,243
Sub-Total: 2021
Total
SERVICE LEVEL IMPACT
These thoughtful reorganizations will increase citywide efficiency by utilizing existing platforms
more effectively. Continuing with this staffing model allows for succession planning and
ensures sustainability of IT System Infrastructure and allows IT to suppor t both the
organization and the community now and well into the future as new technology is
implemented. The City has invested in the infrastructure and the benefits have not been fully
obtained.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Taken as a whole, these reorganizations reflect a shift of IT resources to support our Fiscal
Health Response goals by better utilizing our staff and established Enterprise Applications and
Systems. Our existing Enterprise Applications and Systems, when fully utilized, will help drive
organizational efficiencies, citizen access and engagement, and much more – which is critical
for the City to continue operating in an increasingly digital and connected societ y, to meet the
service expectations and demands of internal and external customers.
Key Objectives: Making the Change Happen
Re-align IT staffing to support the present on -going needs and the organization of the future in
a fiscally responsible manner.
Goal & Policy Criteria
51 Packet Pg. 215
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Information Technology Reorganization
1. IT Strategic Plan
2. Delivering core services and infrastructure
3. New ways of doing business
Major City Goal or Other Important Objective Addressed
Fiscal Sustainability and Responsibility
STAKEHOLDERS
1. Citywide Staff
2. Community
IMPLEMENTATION
Program Manager
1. Deputy City Manager
2. IT Manager
Project Team
1. Deputy City Manager
2. IT Manager
3. Network Services Supervisor
4. Information Services Supervisor
5. Support Services Supervisor
Implementation Plan
July 1, 2019 - Work with Human Resources to recruit for the Application Specialist positions,
reclass Support Services Supervisor to Administrative Analyst.
Alternatives
Continue the Status Quo. Continuing the status quo is not recommended as it will result in
continued inefficiency. This will inhibit the IT Divisions ability to effectively support the City’s
mission and goals for the present and the future.
52 Packet Pg. 216
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Communications Contract Services
Function Program
35 - Fiscal Health & Governance 10100 - City Administration
SUMMARY OF CHANGE
Increase the level of City-wide community outreach and communication services to enhance
overall transparency and dissemination of important information proactively.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 30,000 30,000
Sub-Total: 2020 30,000 30,000
2021 100 7227 30,000 30,000
Sub-Total: 2021 30,000 30,000
Total 60,000 60,000
SERVICE LEVEL IMPACT
Enhance the City’s communications provided to the public using contract services to provide
more infographics/visuals and increase pro-active communication. These efforts will enhance
overall transparency and provide more important information to the community in advance of
key projects and initiatives.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Though the City currently contracts for community outreach and communication support
services to a vendor, there is a demand for increasing the total amount of those services
beyond what is possible in the existing contract.
Key Objectives: Making the Change Happen
The goal of City communication functions is to ensure mutually beneficial, two -way
communication with external (such as residents, non-profit service providers, business owners
and operators, business community representatives, other governmental agencies among
others) and internal audiences about City issues and services. The intended outcome is a more
responsive government, enhanced transparency, a high level of public confidence and
increased community satisfaction with City communication.
53 Packet Pg. 217
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Communications Contract Services
Goal & Policy Criteria
Major City Goal or Other Important Objective Addressed
STAKEHOLDERS
1. All City employees
2. Community members
IMPLEMENTATION
Program Manager
1. Deputy City Manager
2. Assistant to the City Manager
Project Team
1. Deputy City Manager
2. Assistant to the City Manager
Implementation Plan
Amend the existing contract in July, 2019.
54 Packet Pg. 218
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: PBID Assessment
Function Program
20 - Infrastructure & Transportation 50600 - Parking Operations/Maint.
35 - Fiscal Health & Governance 11200 - Economic Development
35 - Fiscal Health & Governance 55100 - Water Admin/Engineering
35 - Fiscal Health & Governance 55300 - Wastewater Admin/Eng.
SUMMARY OF CHANGE
Should the formation of a Property Based Improvement District (PBID) be approved, the City,
as property owner within the PBID, would be required to pay the PBID assessment on the
properties located in the district. Funds will be used to provide additional ambassador
services, enhanced cleaning and more beautification efforts in the downtown.
FISCAL IMPACT
The General Fund's portion of the cost is $62,233 in 2019-20 and $65,124 in 2020-21
The Parking Fund's portion of the cost is $22,697 in 2019-20 and $23,832 in 2020-21
The Water and Sewer's portion of the cost is $377 in 2019-20 and $395 in 2020-21 for each
fund
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 62,233 62,223
2020 500 7227 377 377
2020 510 7227 23,832 23,832
2020 520 7227 377 377
Sub-Total: 2020 86,819 86,819
2021 100 7227 65,124 65,124
2021 500 7227 395 395
2021 510 7227 23,832 23,832
2021 520 7227 395 395
Sub-Total: 2021 89,746 89,746
Total 176,565 176,565
55 Packet Pg. 219
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: PBID Assessment
SERVICE LEVEL IMPACT
Greatly enhanced safety and maintenance in the downtown.
The assessment on City properties would be a new, ongoing cost.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Downtown SLO’s current model does not support the increased need for ongoing services for
businesses in the downtown. Downtown is the heart of the City and county seat and must
continue to thrive and be welcoming.
Key Objectives: Making the Change Happen
1. City support and participation in the PBID formation.
2. PBID formation will provide an estimated $800,000 in new resources.
Goal & Policy Criteria
1. Economic Development Strategic Plan
2. Fiscal Health
Major City Goal or Other Important Objective Addressed
1. Downtown Vitality
2. Fiscal Sustainability and Responsibility
STAKEHOLDERS
1. Downtown SLO
2. Downtown businesses, their employees and customers
IMPLEMENTATION
Program Manager
Economic Development Manager
Project Team
1. Economic Development Manager
2. Deputy City Manager
3. Downtown SLO (DSLO)
Implementation Plan
1. Petition Drive March – May 2019
2. Block by Block Subcontractor Site Visit and Assessment - May 2019
3. Property Owners Vote - June 2019
56 Packet Pg. 220
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: PBID Assessment
4. City Council Approval for PBID - July 2019
5. DSLO Lays Groundwork for PBID Work to Begin (August - October 2019)
• PBID Board of Directors Elected
• Budget Finalized, Implementation Plan Finalized
6. PBID Programs Launch (January 2019)
• Ambassadors Provide 300+ hours of service per week
• Beautification and Placemaking Efforts Begin - January 2020
57 Packet Pg. 221
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Civic Spark Fellowship Program
Function Program
30 - Environmental Health & Open Space 11250 - Office of Sustainability
SUMMARY OF CHANGE
Add two Civic Spark Fellows per year, for two years. The Civic Spark Fellows are provided via
contract with the Local Government Commission and will provide the labor required to
complete the Climate Action Major City Goal work program items, especially th ose that are not
supported by consultant work. The Civic Spark program provides a bridge to further address
staffing needs for future decarbonization and resilience work implementation. The request
includes two fellows per year at $51,000, plus $4,000 in 2019-20 and $2,000 in 2020-21 for
overhead costs including work space, computers, and travel and training needs.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 55,000 55,000
Sub-Total: 2020 55,000 55,000
2021 100 7227 53,000 53,000
Sub-Total: 2021 53,000 53,000
Total 108,000 108,000
SERVICE LEVEL IMPACT
This request enhances staff capacity and technical expertise.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The climate crisis requires aggressive and ambitious climate action. In September of 2018,
Council directed staff to update the Climate Action Plan to achieve carbon neutrality by 2035.
The importance of this work was further confirmed by unanimous council action to include
Climate Action as a Major City Goal for 2019-21. The breadth and depth of work required to
achieve this target requires additional staff resources.
Key Objectives: Making the Change Happen
58 Packet Pg. 222
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Civic Spark Fellowship Program
1. Provide staff capacity to complete Major City Goal work program
2. Provide “bridge” resources to fully understand staffing needs ahead of the Climate Action
Plan update and the 2021-23 Financial Plan
3. Provide mentorship to emerging climate leaders
Goal & Policy Criteria
1. General Plan
2. Climate Action Plan
3. 2019-21 Climate Action Major City Goal
Major City Goal or Other Important Objective Addressed
1. Climate Action
2. Sustainable Transportation
3. Housing
STAKEHOLDERS
1. SLO Climate Coalition
2. Benefitting City departments
3. Local non-profits
4. Residents
5. Businesses
IMPLEMENTATION
Program Manager
Sustainability Manager
Project Team
1. Sustainability Manager
2. Natural Resources Manager
Implementation Plan
The Civic Spark Fellows would provide task support for the Climate Action Major City Goal
59 Packet Pg. 223
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Management Fellowship
Function Program
35 - Fiscal Health & Governance 10100 - City Administration
SUMMARY OF CHANGE
This request is to continue the pilot Management Fellowship program for an additional one-
year contract for each fiscal year. The pilot program has added considerable value to the
organization through projects such as online crime reporting and updating the tree ordinance.
The position is also intended to reduce the time and cost of filling vacancies by creating a
pipeline for talented individuals and accelerate the process for gaining necessary experience.
This position will play a critical role in project support for the Funding the Future initiative,
handle emergent, unplanned needs as they arise and assist other departme nts as needed.
FISCAL IMPACT
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7010 82,500 82,500
Sub-Total: 2020 82,500 82,500
2021 100 7010 82,500 82,500
Sub-Total: 2021 82,500 82,500
Total 165,000 165,000
SERVICE LEVEL IMPACT
The position will work on project and service support to City Administration, including :
• Funding the Future
• Cannabis program, process improvement, and special projects assigned by the City Council.
• Provide support to many departments and functions of the City.
• Assist in the development and implementation of goals, objectives, policies, and priorities.
• Conduct research, studies, surveys and analyses on operational and administrative issues
including issues raised by City Council and/or management staff.
• Review and recommend improvements to budgeting and reporting procedures; assist in the
development and implementation of new procedures.
• Confer with Department Heads and employees regarding policy and procedure changes.
• Analyze, interpret, and apply policies and procedures.
• Effectively organize and coordinate work assignments with different departments.
• Respond to requests for information and advise City departments, governmental agencies,
60 Packet Pg. 224
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: City Administration and IT
Title: Management Fellowship
and the public regarding City policies.
• Coordinate activities within various City departments and divisions, and with outside
agencies.
• Participate in various training and internal/outside development programs.
• Attend Department Head meetings, management meetings, City Council meetings, and other
relevant meetings, as appropriate, including the annual ICMA
conference.
• The Fellow will also be assigned a Department Head mentor for the fellowship year.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The City is currently facing both specific and generalized recruitment and retention challenges
throughout the organization. One of the strategies to address this has been increasing the
amount of training and development available to staff through an agreement with the Center
for Organizational Effectiveness. This has proven to be a successful program with 55% of
openings over the past year being filled with internal candidates, but recruitment and
retention challenges continue in specific areas.
Key Objectives: Making the Change Happen
1. Create a talent pipeline to help fill future needs
2. Retain local graduates who may otherwise move out of the area for professional
opportunities
3. Enhance the City’s reputation as an employer of choice in local government on the Central
Coast
4. Benefit from a prospective Fellow’s recent, contemporary academic training
Goal & Policy Criteria
Major City Goal or Other Important Objective Addressed
IMPLEMENTATION
Program Manager
Deputy City Manager
Implementation Plan
Recruit and fill the Management Fellowship position
61 Packet Pg. 225
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Building Permit Plan Check Consultant Services
Function Program
25 - Community & Neighborhood Livability 40200 - Development Review
SUMMARY OF CHANGE
Utilize consultant services to perform building permit plan check services and implement a
new budget policy to ensure 100% cost recovery for these services.
FISCAL IMPACT
CDD is proposing a new budget policy to enable the allocation of plan check fees to directly
cover the cost of consultants performing Building Permit Plan Check Services. The cost for this
service varies significantly from year to year (2016 - $605,000, 2017 - $475,000, 2018 -
$500,000) depending on the number and scope of permits issued. This cost is funded by
building permit fees via contractual agreements set at 65% of the fee the City collects to
perform the service (35% retained to cover administration and in -house services). Because
existing contracts and industry standard practices provide for 100% cost recovery of
consultant plan check services, staff is proposing a budget policy that will enable the Finance
Director to appropriate current fiscal year revenues to cover this expense on a go-forward
basis.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 500,000 500,000
Sub-Total: 2020 500,000 500,000
2021 100 7227 500,000 500,000
Sub-Total: 2021 500,000 500,000
Total 1,000,000 1,000,000
SERVICE LEVEL IMPACT
The use of consultants to perform building permit plan check services ensures timely
production of plan check comments and issuance of permits within published cycle times.
Building permit plan check consultants have the ability to conduct timely plan checks at a
lower cost than using in house resources. Standard contract cost for the service is 65% of the
fee collected by the City for the work to be performed. As a result, the City fully recovers the
cost of utilizing consultant plan check services.
62 Packet Pg. 226
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Building Permit Plan Check Consultant Services
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The number of permits and complexity of projects associated with building permit plan check
services has grown in recent years while the pool of available code professionals available for
hire to conduct this work has diminished. The City has used consultants to supplement in-
house plan check services for several years and based on a careful evaluation of the cost of
providing plan check services, the City will be moving towards an almost exclusive use of
consultants to perform this service in the future.
Key Objectives: Making the Change Happen
Meet customer service expectations with a fiscally sustainable approach to completing the
work
Goal & Policy Criteria
Fiscal Sustainability Philosophy
Major City Goal or Other Important Objective Addressed
Housing Production
STAKEHOLDERS
Residents, elected officials, building and design professionals
IMPLEMENTATION
Program Manager
Community Development
Project Team
Building and Safety
Implementation Plan
Ongoing program
63 Packet Pg. 227
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Affordable Housing Trust Fund
Function Program
25 - Community & Neighborhood Livability 60600 - Human Relations
SUMMARY OF CHANGE
Reimbursement agreement with Housing Trust Fund for administrative operations that
support financing the production of affordable and transitional housing.
FISCAL IMPACT
There is no fiscal impact to the General Fund. There is a $40,000 impact to the Affordable
Housing Fund per year, ongoing.
Operating Expense: One-time costs of $0 in 2020 and ongoing costs of $40,000.
Operating Expense: One-time costs of $0 in 2021 and ongoing costs of $40,000.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 40,000 40,000
Sub-Total: 2020 40,000 40,000
2021 100 7227 40,000 40,000
Sub-Total: 2021 40,000 40,000
Total 80,000 80,000
SERVICE LEVEL IMPACT
The San Luis Obispo Housing Trust Fund provides technical support and bridge financing to
support the development of affordable housing in the City and County
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The Housing Trust Fund has received this allocation for the past several years. By appropriating
the funding as part of the budget process it will save time for staff involved in housing
programs to accomplish other program priorities.
Key Objectives: Making the Change Happen
Facilitate administration of the City’s housing programs.
64 Packet Pg. 228
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Affordable Housing Trust Fund
Goal & Policy Criteria
Support the development of housing affordable to very-low, low, and moderate-income
households.
Major City Goal or Other Important Objective Addressed
Housing Production
STAKEHOLDERS
Residents, elected officials, homebuilders, non-profit housing developers
IMPLEMENTATION
Program Manager
Community Development - Human Relations
Project Team
Planning and Engineering
Implementation Plan
65 Packet Pg. 229
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Housing Coordinator
Function Program
25 - Community & Neighborhood Livability 40200 - Development Review
SUMMARY OF CHANGE
Exchange a vacant 1 FTE Plans Examiner Position with a 1 FTE Housing Coordinator Position.
FISCAL IMPACT
This SOPC has an ongoing net savings of $61,177 per year due to the elimination of a Plans
Examiner FTE, and allocation of CDBG and the Affordable Housing Fund to further offset the
cost of the Housing Coordinator position.
Breakdown of Costs
Fully burdened Housing Coordinator cost: $112,760P
Fully burdened Plans Examiner cost: -$124,937
Average CDBG administration allocation: -$32,000
Approved Affordable Housing Program allocation: -$17,000
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7010 112,760 -173,937 -61,177
Sub-Total: 2020 112,760 -173,937 -61,177
2021 100 7010 112,760 -173,937 -61,177
Sub-Total: 2021 112,760 -173,937 -61,177
Total 225,520 -122,354
SERVICE LEVEL IMPACT
Ensures continuity in the implementation of the City’s Housing Programs by eliminating 1 FTE
Plans Examiner (Vacant) and Replace with 1 FTE Housing Coordinator (Regular).
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The Community Development Department has been using contract staff to manage the City’s
Housing Programs. This change will eliminate a vacant Plans Examiner position in exchange
for this higher priority need. Building Permit Plan check will continue to be accomplished
through consultant services.
Key Objectives: Making the Change Happen
66 Packet Pg. 230
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Community Development
Title: Housing Coordinator
Coordinate the implementation of the City’s Housing Programs through a variety of activities
carried out by staff, consultants, housing developers and others.
Goal & Policy Criteria
The City’s Housing Element includes a wide variety of goals and policies related to affordable
housing and the City manages an active Inclusionary Housing Program.
Major City Goal or Other Important Objective Addressed
Housing Production
STAKEHOLDERS
Residents, elected officials, homebuilders, non-profit housing developers, local business
owners and employees
IMPLEMENTATION
Program Manager
Community Development
Project Team
Planning and Engineering
Implementation Plan
Ongoing program
67 Packet Pg. 231
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Finance
Title: Financial Analyst – Infrastructure Financing
Function Program
35 - Fiscal Health & Governance 25100- Finance Administration
SUMMARY OF CHANGE
In recent years, the City has entered into several annexations, development agreements, a new AB1600
impact fee program, and has established two community facility districts (CFDs). All of these efforts come
with contractual obligations, bond financings and related tax payments, and fee assessments and spending
justifications. In order to stay in compliance with all aspects of the various development and infrastructure
agreement obligations, staff recommends hiring a position dedicated to administering the development
related programs including the annual property tax assessment and bond payments from one of the CFDs.
The position is largely supported by new revenues from administrative fees related to these agreements with
a portion coming from the General Fund tied to managing CIP funding. Lastly, the position will afford the City
to do knowledge transfer of impact fee programming from engineering to Finance.
FISCAL IMPACT
The position would be hired at the Senior Administrative Analyst level with a total, top of range
compensation of $125,000 annually. The position compensation will largely be covered by the administrative
fees assessed on the various development agreements. It is anticipated that 80% of the full staffing cost will
be covered by fees from the developers.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 $125,000 $105,000 $20,000
Sub-Total: 2020
2021 100 7227 $128,000 $105,000 $23,000
Sub-Total: 2021
Total $253,000 $210,000 $43,000
SERVICE LEVEL IMPACT
Hiring the position will make certain that all regulatory reporting, collection, and assessments will be
administered according to relevant policies, codes, and applicable laws.
Stakeholders
The developer community and the City organization as the responsible party for the administration of all the
development related agreements.
IMPLEMENTATION
Program Manager
Finance Director
Project Team
68 Packet Pg. 232
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Finance
Title: Financial Analyst – Infrastructure Financing
Implementation Plan
1. Develop job description.
2. Release an employment opportunity program recruitment. If unsuccessful, open outside recruitment.
3. Hire for the position.
4. Develop program with all applicable policies, processes, manuals, and deadlines.
Alternatives
Hire a contract employee. This is not recommended as the need is ongoing since the developments related to
the regulatory efforts are of a long-term nature.
69 Packet Pg. 233
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Fire
Title: Recruit Academy Overtime Increase
Function Program
10 - Community Safety 85410 - Recruit Academy
SUMMARY OF CHANGE
Increase the Recruit Academy Cost Center Overtime budget to accommodate an extended training academy
duration from six (6) weeks to ten (10) weeks due to the hiring of entry -level PEPRA recruits.
FISCAL IMPACT
Ongoing fiscal impact of $32,000 every other fiscal year. The additional 4 weeks of overtime will require the
increase to be budgeted every other year because the Recruit Academy is scheduled to occur once every two
years and is budgeted in the first of the two-year financial plan. The current overtime budget is $49,200 for
the six-week academy, which equates to $8,200 per week. An additional four (4) weeks will require an
increase of $32,000.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7020 32,000 32,000
Sub-Total: 2020 32,000 32,000
Total 32,000 32,000
SERVICE LEVEL IMPACT
Increasing the overtime budget associated with the Recruit Academy will allow the Fire Department to
maintain service levels to the community by delivering fully-trained recruits to the emergency response
engine and truck companies.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Costs associated with hiring non-PEPRA employees continue to increase as the CalPERS unfunded liability
issue lingers and forces agencies to increase contributions to the employee retirement system. Historically,
the Fire Department has hired lateral firefighters who do not require the extensive training that is nee ded for
an entry-level employee, and thus has only held a six (6) week academy. The Fire Department is working to
reduce the unfunded liability problem through hiring PEPRA employees. Subsequently, the Department needs
to extend the Academy by four (4) weeks to a total of ten (10). To adequately budget for this increase, the
department needs to increase the overtime utilized for Academy instruction by a proportional amount.
Key Objectives: Making the Change Happen
Budget properly for the change in hiring practices of entry-level recruits.
Goal & Policy Criteria
70 Packet Pg. 234
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Fire
Title: Recruit Academy Overtime Increase
1. Fire Department Strategic Plan 4.1.2: Improving Organizational Culture, Sustainability, and Health through
partnering with Human Resources to maximize the recruitment and retention of employees who embrace our
service-focused mission and aspirational healthy workplace culture.
2. Fire Department Strategic Plan Objective 5.1.2: Supporting Fiscal Sustainability in Department Operations
through assessing hiring practices based on current CALPERS data, to include assessment of entry-level
firefighter recruitment, hiring, and training.
Major City Goal or Other Important Objective Addressed
Fiscal Sustainability and Responsibility through the hiring of PEPRA employees, thus reducing the City’s
burden to CALPERS.
STAKEHOLDERS
1. Fire Recruits
2. Community receiving fire services
3. All City Employees (as CALPERS members)
IMPLEMENTATION
Program Manager
Deputy Fire Chief
Project Team
N/A – No additional team members needed
Implementation Plan
Thoughtfully utilize and manage overtime budget associated with the Recruit Academy
Alternatives
Continue budgeting overtime for a six (6) week academy. This is not recommended as the costs will exceed
budgeted amounts, and likely result in a budget overage at year-end.
71 Packet Pg. 235
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Parks & Recreation
Title: Implementation of Phase One of Organization of the Future
Function Program
35 - Fiscal Health & Governance 60100 – Community Services
SUMMARY OF CHANGE
Achieve an organizational structure that results in effective and efficient governance and operational
innovation.
FISCAL IMPACT
On-going annual cost of $225,000
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 225,000 225,000
Sub-Total: 2020 225,000 225,000
2021 100 7227 225,000 225,000
Sub-Total: 2021 225,000 225,000
Total 450,000 450,000
SERVICE LEVEL IMPACT
The funding will allow for hiring of staff or reclassify positions (dependent upon departmental
reorganizations) or consultant services to implement the Organization of the Future.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The City as an organization is facing unprecedented change. New technologies are changing how staff
perform their jobs, new fiscal, infrastructure is being constructed to comply with regulatory obligations as
well as to support housing production. As a result, the City as an organization must change to offer enhanced
customer service to the community, a more collaborative organizational structure, optimized service delivery,
a healthy and smart workplace, and the improved planning, delivery, coordination, and administration of
external services to the community.
Key Objectives: Making the Change Happen
Improved services to the community. Increased responsiveness and clearer communications. Creation of
synergies and efficiencies in the Organization. Continued fiscal sustainability. Development of staff for the
future.
Goal & Policy Criteria
Fiscal Health Response Plan
72 Packet Pg. 236
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Parks & Recreation
Title: Implementation of Phase One of Organization of the Future
Major City Goal or Other Important Objective Addressed
Fiscal Sustainability, Housing, Active Transportation, and Downtown Vitality
STAKEHOLDERS
All members of Community Services including the departments of CDD, P&R, PW, and Utilities as well as
internal services Departments of Admin, HR, Finance and the City Attorney . External stakeholders are
residents, neighborhoods, businesses, and community partners.
IMPLEMENTATION
Program Manager
Shelly Stanwyck, Assistant City Manager Community Services
Project Team
Michael Codron, CDD Director
Lindsey Stephenson and Devin Hyfield, Recreation Managers, P&R
Daryl Grigsby, PW Director
Aaron Floyd, Utilities Interim Director
Greg Herman, Deputy City Manager, Admin
Monica Irons, HR Director
Brigitte Elke, Finance Director
Implementation Plan
Hire staff and or consultants in support of this project
Alternatives
Use salary savings and reorganizations to achieve savings to allow for necessary hire of appropriate staff to
achieve this effort.
73 Packet Pg. 237
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police
Title: Online Reporting Annual Cost
Function Program
10 - Community Safety 80400 - Police Support Services
SUMMARY OF CHANGE
The Police Department will be implementing an online reporting tool for the community to
report non-emergency calls for service.
FISCAL IMPACT
The software has already been purchased; the annual maintenance will be an ongoing cost of
$13,600 in FY 2019-20 and $13,600 in FY 2020-21.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 13,600 13,600
Sub-Total: 2020 13,600 13,600
2021 100 7227 13,600 13,600
Sub-Total: 2021 13,600 13,600
Total 27,200 27,200
SERVICE LEVEL IMPACT
The Police Department will be implementing an online reporting tool to provide enhanced
services to the community to report non -emergency calls for service.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
The Police Department currently does not offer an online reporting option. By implementing
this web-based tool the community will be able to easily report non-emergency calls for
service.
Using an online reporting system will also decrease officer workload, which will allow for more
proactive time in the field. Currently, the average Police Officer responds to 800-1000 calls for
service a year. The Police Department’s goal is to have 1000 calls for service reported through
the online reporting system as opposed to a Police Officer being sent out in the field.
Key Objectives: Making the Change Happen
74 Packet Pg. 238
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police
Title: Online Reporting Annual Cost
1. Enhance service to the Community by providing an online option for reporting purposes.
2. Increase officer proactive time in the field by offering an alternative option for reporting
non-emergency calls for service.
Goal & Policy Criteria
Major City Goal or Other Important Objective Addressed
Fiscal Sustainability and Responsibility – new ways of doing business
STAKEHOLDERS
Community, police department
IMPLEMENTATION
Program Manager
Police Lieutenant
Project Team
Management Fellow, Communications Manager, Records Supervisor
Implementation Plan
Prep for RMS integration – Jan – March 2019
Testing Phase 1 & 2 – April 2019
Implement Software – May 2019
75 Packet Pg. 239
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police, Administration
Title: Cannabis Program Implementation
Function Program
10 - Community Safety 80300 - Investigations
26100 - Support Services
SUMMARY OF CHANGE
Increase staffing by one Police Officer position for the newly assigned Cannabis Detective. The
position and related equipment was considered in the fee development and will be covered by
Cannabis permit fees. Allocate funds collected through fees for other related cannabis
business services.
FISCAL IMPACT
The ongoing cost for one new FTE Cannabis Detective position estimated at $165,827 in FY
2019-20 and $171,610 in FY 2020-21 and will be covered by Cannabis permit fees.
Also funded by Cannabis fees are ongoing costs for officer overtime in the amount of $23,855
in FY 2019-20 and $24,332 in FY 2020-21. One-time costs for police officer safety and cannabis
regulation enforcement equipment will cost $25,500 in FY 2019-20.
Allocations of $120,000 in FY 2019-20 and $200,000 in FY 2020-21 are for other related
cannabis business services in Administration, Community Development, City Attorney, and
Finance departments that will be scaled according to timelines for businesses opening and
required services.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 44520 215,182 215,182
2020 100 7010 1 165,827 165,827
2020 100 7020 23,855 23,855
2020 100 7843 25,500 25,500
2020 100 7304 120,000 120,000 0
Sub-Total: 2020 145,500 189,682 355,182
2021 100 44520 195,942 -195,942
2021 100 7010 1 171,610 171,610
2021 100 7020 24,332 24,332
2021 100 7304 200,000 200,000 0
Sub-Total: 2021 200,000 195,942 395,942
76 Packet Pg. 240
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police, Administration
Title: Cannabis Program Implementation
Total 345,500 385,624 751,124
SERVICE LEVEL IMPACT
Adding this Police Officer FTE will ensure that Cannabis laws and policies are adhered to. If the
position is not back-filled, there will be an impact to current sworn staffing.
The allocation for other related services in various departments needed to provide the service
level to business accounted for in fees to properly implement the program.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Due to the introduction of cannabis related businesses in the City, the Police Department has
assigned one officer as a Cannabis Detective, who is solely responsible for creating and
developing the Cannabis Regulation Unit in association with other City and state departments.
This new assignment creates a vacancy in the Patrol unit and affects minimum staffing levels.
Due to a call for service increase of 28% over the last seven years, this position cannot be
absorbed with current staffing.
The Cannabis Detective’s role is to regulate, inspect, and enforce cannabis laws on legal
cannabis cultivations, store-front dispensaries, conversion laboratories, edible and infused
product testing facilities, and mobile dispensary delivery services to ensure compliance with
the law. This Officer is required to receive specialized training on the new cannabis regulations,
investigation of cannabis businesses, investigation of cultivation operations, OSHA approved
clandestine conversion laboratory investigation training with hazardous materials
certifications, develop a knowledge base of marijuana products and processes, and how to
develop and teach cannabis education programs to youths and adults. Since late 2018, the San
Luis Obispo Police Department has spent over 720 hours on Cannabis related activities.
Equipment related to this position includes the following; laptop, surveillance equipment,
office equipment and items for inspections.
The regulatory fees for cannabis businesses are collected to implement the program as
adopted by the City Council.
Key Objectives: Making the Change Happen
1. Enforce City policies and California laws as they relate to Cannabis business permits.
2. Provide essential resources to community, business owners and other City departments as it
relates to cannabis laws.
3. Provide proper training and guidance to cannabis business owners.
77 Packet Pg. 241
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police, Administration
Title: Cannabis Program Implementation
Goal & Policy Criteria
1. Cannabis Business Tax – Measure F-18
2. Cannabis City Ordinance – Municipal Code Chapter 9.10 and Chapter 17.99
Major City Goal or Other Important Objective Addressed
1. Fiscal Sustainability and Responsibility – passing Measure F-18 relates to economic
development and responsiveness.
STAKEHOLDERS
Downtown SLO, Chamber of Commerce, Cannabis Industry, all City departments, Community
IMPLEMENTATION
Program Manager
Administrative Captain/Economic Development Manager
Project Team
Detective Sergeant, Cannabis Detective, Citywide Cannabis Team
Implementation Plan
Recruit for position: July 2019
Conduct interviews and make selection: September 2019
Hire new Police Officer: January 2020
Scale use of resources for other business services as needed by the organization and business
community.
78 Packet Pg. 242
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police
Title: Downtown Sergeant & Field Service Technician
Function Program
10 - Community Safety 80200 - Patrol
SUMMARY OF CHANGE
Use Parking Enterprise Funds from the Garden Street Terrace Land Lease Agreement to
increase Police staffing by one Downtown Field Service Technician (FST) and a Downtown
Sergeant position.
FISCAL IMPACT
Funding a Field Service Technician (FST) and the Downtown Sergeant will be an ongoing cost
of $227,695 in FY 2019-20 and $227,695 in FY 2020-21. One-time costs associated with
equipment purchases will be $6,100 in FY 2019-20.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 611 56860 233,795 -233,795
2020 100 7010 227,695 227,695
2020 100 7875 6,100 6,100
Sub-Total: 2020 6,100 227,695 233,795
2021 611 56860 227,695 -227,695
2021 100 7010 227,695 227,695
Sub-Total: 2021 227,695 227,695
Total 6,100 455,390 461,490
SERVICE LEVEL IMPACT
Funding these positions will enhance police services downtown by providing support in
responding to non-emergency calls for service and increasing downtown supervision. These
positions will help to address the high number of calls for service within the City’s downtown
core and provide additional resources for business owners and citizens who enjoy San Luis
Obispo’s downtown.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
In 2017, to improve downtown vitality and safety, the department took an existing Sergeant
and reassigned the position to a “Downtown Sergeant”. This position oversees the following
79 Packet Pg. 243
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police
Title: Downtown Sergeant & Field Service Technician
resources and tasks:
• Four downtown bike officers
• Two CAT officers and one civilian mental health social worker
• Three swing shift patrol officers
• Relationships with Downtown SLO, Chamber of Commerce and citizens.
• Partnering with downtown entities, community development on development impacts, and
partnering with Tourism manager.
This re-assignment left unfilled Sergeant responsibilities within the Investigative Bureau which
have been amplified by the addition of cannabis activities. The department can no longer
sustain the workload in the Investigative Bureau with only one Sergeant. The department will
need to re-assign the downtown Sergeant back to the Investigative Bureau as a second
Sergeant.
Approving this request enables the department to pay for a downtown Sergeant using new
Parking Funds from the 99-year land lease agreement for the Garden Street Terraces project .
The Department will move the current Administrative Sergeant to the Downtown Sergeant
position and as a result, hire a Civilian Training Coordinator to fulfill the role previously filled by
the Administrative Sergeant.
The police department, on average, takes over 33,000 calls for service a year, translating
roughly into 1,000 calls for service per patrol officer. Of the 33,000 calls for service
approximately 5,000 are related to downtown and two of the top five calls for service locations
are directly related to downtown parking structures.
Staff has determined that 850 of the 5,000 downtown calls could be completed by an FST. The
department currently has one FST that handles 700 calls city-wide annually. The wide variety
of tasks completed by the FST are not all necessarily tracked as a call for service. Additionally,
the FST position is a more cost effective way to respond to non-emergency calls, compared to
a sworn officer position.
The Police Department in conjunction with Public Works has agreed to use funding from the
Garden Street Terrace Project and the Parking Fund for the Downtown Sergeant and a
Downtown Field Service Technician.
Key Objectives: Making the Change Happen
1. Increase service levels within the downtown corridor
2. Supplement existing Patrol services
3. Increase oversite and supervision within the downtown
4. Reduce harm to our citizens through crime prevention
5. Increase economic vitality
80 Packet Pg. 244
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Police
Title: Downtown Sergeant & Field Service Technician
Goal & Policy Criteria
Parking Services program goal to promote economic and social vitality in the downtown core.
The addition of one FST and one downtown sergeant will assist by creating more services to
promote a safer downtown.
Major City Goal or Other Important Objective Addressed
1. Downtown Vitality. Continue to improve safety, infrastructure investment, and maintenance
in the Downtown and support Downtown Association’s proposal to consider a Downtown
improvement district.
2. Multi-Modal Transportation. Prioritize implementation of the Bicycle Master Plan,
pedestrian safety, and the Short-Range Transit Plan.
3. Fiscal Sustainability and Responsibility – new way of doing business and thoughtful
reorganization.
STAKEHOLDERS
Police department, visitors, Downtown business owners, community, City of San Luis Obispo
IMPLEMENTATION
Program Manager
Police Chief
Project Team
Police Chief, Operations Captain and Administrative Sergeant
Implementation Plan
Post opening for Field Service Technician (FST): July 2019
Hire and Train FST position: September 2019 – January 2020
Transition Admin. Sergeant to Investigations and provide required training: January 2020
81 Packet Pg. 245
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: Urban Forest Management
Function Program
15 - Culture & Recreation 60280 - Community Services
25 - Community & Neighborhood Livability 50220 - Tree Maintenance
SUMMARY OF CHANGE
The Urban Forest Services team manages the approximately 20,000 trees in the City's urban
forest inventory. Currently a three-person crew focuses on tree pruning, maintenance, and
proactive scheduled work. Over the years Urban Forest services has also taken on several
special projects outside the scope Urban Forest management such as banner installation and
removal, and other duties, and, reduce the ability of the city to proactively manage the urban
forest. The proposed change includes
1. Collaboration with Parks Rangers for maintenance of Commemorative Groves (no cost)
2. Contract Services for the installation and removal of Banners in the downtown corridor
($30,000/year)
3. Two-year full time Contract Urban Forester ($95,000 each fiscal year and financed through
current resources.)
The proposed change, coupled with $175,000 CIP for contract pruning, would enable the city
to move toward an average 5-year pruning cycle from the current 12. Addition of contract
staffing to the Urban Forest team would enable 2 2-person crews to work more efficiently and
provide proactive maintenance
FISCAL IMPACT
One time cost of $190,000. $95,000 for FY 19/20 and $95,000 FY 20/21 and ongoing cost
annual of $30,000.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7227 30,000 30,000
Sub-Total: 2020 30,000 30,000
2021 100 7227 30,000 30,000
Sub-Total: 2021 30,000 30,000
Total 60,000 60,000
SERVICE LEVEL IMPACT
82 Packet Pg. 246
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: Urban Forest Management
This change would allow the pruning of the City’s urban forest on a five -year cycle instead of
every 12 years. Currently reactive maintenance is more costly as the maintenance required is
more significant and crews are dispatched away from a more efficient proactive schedule. The
five-year cycle will also enable the Urban Forest crew to catch up on replanting.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
Past experience shows that a 12-year cycle results in more costly reactive maintenance,
increased claims against the City, emergencies and other high priority service requests that can
drive the need for overtime. Tree related claims are one of the major claims ’ categories in
Public Works.
Key Objectives: Making the Change Happen
to provide an attractive, healthy, and safe urban forest.
Goal & Policy Criteria
Major City Goal or Other Important Objective Addressed
Climate Action -
Downtown Vitality -
STAKEHOLDERS
The community and its visitors’ benefits from a well-kept urban forest
IMPLEMENTATION
Program Manager
City Arborist
Project Team
Urban Foresters, Park Rangers, City Engineer
Implementation Plan
1. Service Level Agreement with Parks and Recreation
2. Scope work for banner installation and removal
3. Hire Contract Urban Forester
4. Procure Contract for banner installation and removal
83 Packet Pg. 247
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: SLOCOG Annual Dues
Function Program
35 - Fiscal Health & Governance 50100 - Public Works Admin.
SUMMARY OF CHANGE
The annual SLOCOG fees were previously paid for by federal transit dollars. However, SLOCOG
now uses these dues to fund federal lobbyist efforts and federal funding can no longer be
used. The allocation was never formally adopted as an operating expense and this request now
adopts this mandatory expense as a formal line item.
FISCAL IMPACT
Ongoing increase of $9,804 in adopted annual general fund operating expenditures.
Fiscal
Year Fund Account FTEs One-Time Ongoing
Revenue
Offset Net Cost
2020 100 7453 9,804 9,804
Sub-Total: 2020 9,804 9,804
2021 100 7453 9,804 9,804
Sub-Total: 2021 9,804 9,804
Total 19,608 19,608
SERVICE LEVEL IMPACT
None.
BACKGROUND & SUPPORTING EVIDENCE
Existing Situation: Factors Driving the Need for Change
SLOCOG’s new use of the funds and no formal line item previously adopted for this mandatory
annual expense.
Key Objectives: Making the Change Happen
Fulfill SLOCOG contractual requirements
Goal & Policy Criteria
City Circulation Element Goals & Associated Policies 1.6 and 1.7
84 Packet Pg. 248
Item 13
SIGNIFICANT OPERATING BUDGET CHANGE
Department Name: Public Works
Title: SLOCOG Annual Dues
Major City Goal or Other Important Objective Addressed
Sustainable Transportation
STAKEHOLDERS
SLOCOG
IMPLEMENTATION
Program Manager
Gamliel Anguiano – Transit Manager
Luke Schwartz – Interim Transportation Manager
Project Team
Public Works Transportation
Implementation Plan
Pay the bill
85 Packet Pg. 249
Item 13
2019-21 FINANCIAL PLAN
CAPITAL IMPROVEMENT PROJECTS
PLAN
FUND SUMMARY PAGE
GENERAL OUTLAY FUND 1 – 3
MAJOR FACILITIES REPLACEMENT FUND 4 – 5
INFORMATION TECHNOLOGY REPLACEMENT FUND 6
FLEET REPLACEMENT 7
INFRASTRUCTURE INVESTMENT FUND 8
ATTACHMENT D
Packet Pg. 250
Item 13
CAPITAL IMPROVEMENT PROJECT PLAN
GENERAL CAPITAL OUTLAY FUND
General Capital Outlay Fund
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
FY
2023-24
Total
Annual Asset
Maintenance $ 3,796,797 $ 3,403,054 $ 5,435,224 $ 5,093,902 $ 6,242,314 $23,971,291
Bicycle Facility
Improvements $100,000 $100,000 $100,000 $100,000 $100,000 $500,000
Bridge
Maintenance $- $100,000 $100,000 $ 75,000 $ 75,000 $350,000
Laguna Lake Golf
Course
Maintenance
$10,000 $20,000 $20,000 $20,000 $20,000 $ 90,000
Neighborhood
Traffic
Improvements
$1- $- $75,000 $75,000 $75,000 $225,000
New Street Lights $75,000 $75,000 $25,000 $25,000 $25,000 $225,000
Open Space $40,000 $40,000 $60,000 $80,000 $80,000 $300,000
Park Major
Maintenance &
Repairs
$70,000 $555,000 $615,000 $560,000 $490,000 $2,290,000
Parking Lot
Maintenance $- $20,000 $300,000 $405,000 $370,000 $1,095,000
Pedestrian and
Bicycle Pathway
Maintenance
$- $79,000 $80,000 $50,000 $100,000 $309,000
Pismo/Johnson/SL
Creek Bank
Stabilization
$- $10,000 $10,000 $125,000 $- $145,000
Playground
Equipment
Replacement
$500,000 $160,000 $275,000 $450,000 $795,000 $2,180,000
Sidewalk
Replacement and
Installation2
$46,000 $89,000 $100,000 $250,000 $250,000 $735,000
Storm Drain
System
Replacement
$205,000 $300,000 $550,000 $550,000 $550,000 $2,155,000
Street
Reconstruction &
Resurfacing
$2,575,000 $1,600,054 $2,895,000 $2,098,902 $3,085,000 $12,253,956
1 Funding for Neighborhood Traffic Improvements in 2019 -20 and 2020-21 will occur with carryover funding from the 2017-19
financial plan. Improvements will occur in the Buchon neighborhood.
2 Includes funding for installation of new curb ramps.
1 Packet Pg. 251
Item 13
CAPITAL IMPROVEMENT PROJECT PLAN
GENERAL CAPITAL OUTLAY FUND
General Capital Outlay Fund
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
FY
2023-24
Total
Traffic Signs &
Striping
Maintenance
$- $25,000 $25,000 $25,000 $25,000 $100,000
Transportation
Safety &
Operations
$- $55,000 $30,000 $30,000 $30,000 $145,000
Urban Forest
Maintenance $175,797 $175,000 $175,224 $175,000 $172,314 $873,335
Asset
Replacement $1,575,000 $1,441,000 $815,000 $42,400,000 $9,400,000 $55,631,000
Air Compressor
Replacement $- $80,000 $- $- $- $ 80,000
Community
Safety Emergency
Response
Communication
Equipment
$380,0003 $- $- $- $- $380,000
Council Hearing
Room
Maintenance
$100,000 $- $- $- $- $100,000
Downtown
Renewal4 $400,000 $640,000 $- $- $- $1,040,000
Laguna Lake
Dredging and
Sediment
Management
Project
Implementation
$150,000 $350,000 $350,000 $400,000 $400,000 $1,650,000
Mission Plaza
Restroom
Replacements
and
Enhancements
$45,000 $150,000 $- $1,000,000 $- $1,195,000
Parks and
Recreation
Interior Office
Rehabilitation
$400,000 $- $- $- $- $400,000
3 Fire Station #2 tower replacement.
4 Replacement of sidewalk on Broad from Higuera to Marsh Street. Planned widening on south side of Broad Street.
2 Packet Pg. 252
Item 13
CAPITAL IMPROVEMENT PROJECT PLAN
GENERAL CAPITAL OUTLAY FUND
General Capital Outlay Fund
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
FY
2023-24
Total
Pedestrian
Crossing
Improvements
$40,000 $- $- $- $- $40,000
Police Station
Replacement $50,000 $- $465,000 $41,000,000 $9,000,000 $50,515,000
Traffic Safety
Implementation $10,000 $221,000 $- $- $- $231,000
New Asset $685,000 $11,310,000 $328,000 $280,000 $200,000 $12,803,000
Active
Transportation
Plan
$100,000 $- $- $- $- $100,000
Anholm
Neighborhood
Greenway Plan
Implementation
$400,000 $800,000 $- $- $- $1,200,000
Broad Street
Corridor Access
Improvements5
$80,000 $- $18,000 $80,000 $- $178,000
Community
Safety Emergency
Response
Communication
Equipment
$- $500,0006 $- $- $- $500,000
Electric Vehicle
Charging Station
at City Hall
Parking Lot
$5,000 $45,000 $- $- $- $50,000
Open Space
Acquisition $100,000 $150,000 $200,000 $200,000 $200,000 $850,000
Prado Road
Interchange $- $9,800,000 $- $- $- $9,800,000
Solar Installations $- $- $- $- $- $-
South Street
Median
Landscaping
$- $15,000 $110,000 $- $- $125,000
Grand Total $6,056,797 $16,154,054 $6,578,224 $47,773,902 $15,842,314 $92,405,291
5 Includes Hawk Beacon and traffic calming.
6 South hills Radio Tower replacement.
3 Packet Pg. 253
Item 13
CAPITAL IMPROVEMENT PROJECT PLAN
MAJOR FACILITIES REPLACEMENT FUND
Major Facilities Replacement
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
FY 2023-
24 Total
Annual Asset
Maintenance $516,210 $524,243 $42,727 $541,532 $552,226 $2,176,938
Fire Station #2 - Roof $ - $50,000 $- $- $- $50,000
Fire Station #3 - Roof $ - $50,000 $- $- $- $50,000
Hydration Stations $ - $3,000 $15,000 $11,000 $15,000 $44,000
Police Department Roof
Repair $20,000 $- $- $- $- $20,000
Swim Center Shower
System Repair $15,000 $56,000 $- $- $- $71,000
Facility Roll Up Door
Replacements - Various
Locations
$5,290 $10,000 $17,000 $10,000 $15,000 $57,290
Ludwick Community
Center - Roof $ - $- $- $35,000 $252,000 $287,000
ADA Transition Plan
Implementation $9,920 $9,743 $10,727 $10,332 $10,226 $50,948
Corp Yard - Fuel Island
Coating and Dispensers $ - $- $- $115,000 $- $115,000
Swim Center Therapy Pool
Chemical Pumps $8,000 $- $- $- $- $8,000
City Hall Fire Department
Fiber Connection $58,000 $- $- $- $- $58,000
Corp Yard Fuel Island
Siding $ - $- $- $178,000 $- $178,000
Energy Management
System (EMS) $100,000 $100,000 $- $- $- $200,000
Fire Station #1- HVAC $140,000 $- $- $- $- $140,000
Fire Station #1
Administration Bldg. Roof $ - $81,500 $- $- $- $81,500
Fire Station #1 Fleet
Maint. Bldg. Roof $ - $20,000 $- $- $- $20,000
Fire Station #4- Exterior
Paint $ - $27,500 $- $- $- $27,500
Jack House Widows Walk
Railing $ - $- $- $85,000 $- $85,000
Ludwick and Senior
Center- Exterior Paint and
Shell Rehab
$ - $- $- $30,000 $260,000 $290,000
Swim Center Olympic Pool
Thermal Blankets $ - $30,000 $- $- $- $30,000
4 Packet Pg. 254
Item 13
CAPITAL IMPROVEMENT PROJECT PLAN
MAJOR FACILITIES REPLACEMENT FUND
Major Facilities Replacement
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
FY 2023-
24 Total
Police Evidence Storage
Bldg.- Roof $ - $37,000 $- $- $- $37,000
Police Range- Roof $ - $4,500 $- $22,200 $- $26,700
Swim Center Bath House
Roof $70,000 $- $- $- $- $70,000
Swim Center Bath House
Ceiling $ - $30,000 $- $- $- $30,000
Swim Center Re-Plaster
Therapy Pool $90,000 $- $- $- $- $90,000
Swim Center Therapy Pool
Boiler $ - $15,000 $- $45,000 $- $60,000
Asset Replacement $ - $- $490,000 $- $- $490,000
Maintenance Lifts $ - $- $490,000 $- $- $490,000
Grand Total $516,210 $524,243 $532,727 $541,532 $552,226 $2,666,938
5 Packet Pg. 255
Item 13
CAPITAL IMPROVEMENT PROJECT PLAN
INFORMATION TECHNOLOGY REPLACEMENT FUND
IT Replacement
FY
2019-20
FY
2020-21
FY
2021-22
FY 2022-
23
FY 2023-
24 Total
911 Phone System $- $ 20,000 $- $- $- $ 20,000
Access Control (Automatic
Gate Card System) $- $125,000 $- $- $- $125,000
Audio Recording System
Replacement $- $ 10,000 $- $- $- $ 10,000
Body Worn Cameras,
Video Storage and
Interview Rooms
$- $- $- $- $396,000 $396,000
City SAN $- $- $- $178,136 $- $178,136
ECC Equipment
Replacement $35,000 $- $- $- $- $ 35,000
Fire Radio Receive Site at
Fire Station #4 $- $ 89,000 $- $- $- $ 89,000
Firewall Replacement $ 154,863 $- $- $- $- $154,863
Network Security Upgrade $ 100,664 $- $- $- $- $100,664
Network Switching
Infrastructure Equipment $90,000 $- $- $- $- $ 90,000
PD Storage Area Network $- $- $- $145,000 $- $145,000
Police CAD Hardware
(Servers and Storage) $- $- $233,000 $117,000 $- $350,000
Public Safety MDC and In-
Car Video Replacement $80,000 $500,000 $- $- $- $580,000
Radio Handhelds &
Mobiles $ 143,123 $- $116,758 $- $ 69,364 $329,245
Security Video System
Replacement (Camera &
Software)
$- $- $- $- $ 55,500 $ 55,500
Shoremicro (Radio System
Redundant Bypass Link) $- $ 50,000 $- $- $- $ 50,000
Uninterruptible Power
Supplies (UPS’s Servers
and Storage)
$- $- $ 42,465 $- $- $ 42,465
Virtual Private Network
Replace $78,500 $- $- $- $- $ 78,500
VMware Infrastructure
Upgrade $ 202,553 $110,250 $110,250 $- $- $423,053
Wireless System Citywide $- $- $- $ 70,641 $- $ 70,641
Grand Total $ 884,703 $904,250 $502,473 $510,777 $520,864 $3,323,067
6 Packet Pg. 256
Item 13
CAPITAL IMPROVEMENT PROJECT PLAN
FLEET REPLACEMENT FUND
Fleet Replacements
FY 2019-
20
FY
2020-21
FY
2021-22
FY 2022-
23
FY 2023-
24 Total
Streets Maintenance Medium
Duty Truck with Hooklift Bed $135,000 $- $- $- $- $135,000
Streets Maintenance Medium
Duty Truck with Utility Bed and
Crane
$120,000 $- $- $- $- $120,000
Stormwater Hydro cleaner $- $120,000 $50,000 $120,000 $120,000 $410,000
Police Patrol Hybrid SUV (4
Vehicles Total) $- $260,000 $- $- $- $260,000
Police Patrol Truck $ 75,000 $- $- $- $- $75,000
Police Patrol Hybrid SUV (2
Vehicles Total) $130,000 $- $126,000 $130,000 $- $386,000
Police SNAP SUV Hybrid $ 55,000 $- $- $- $- $55,000
Fire Medium Duty Truck with
Utility Bed $- $- $110,000 $- $150,000 $260,000
Fleet Maintenance Stationary
Generator $- $- $100,000 $- $- $100,000
Park Maintenance Mower $- $- $75,000 $- $- $75,000
Park Maintenance Tractor $- $- $75,000 $- $- $75,000
Fire 1/2-ton Truck $- $- $65,000 $- $50,000 $115,000
Golf Course Mower $- $- $65,000 $- $- $65,000
Parks Maintenance ATV for
Field Prep $- $- $30,000 $- $- $30,000
Building & Safety SUV $- $- $- $70,000 $- $70,000
Fire Compact Truck $- $- $- $50,000 $- $50,000
Fire Heavy Duty Truck $- $- $- $120,000 $120,000 $240,000
Parks and Recreation Minivan $- $- $- $48,000 $- $48,000
Police Patrol SUV (3 Vehicles
Total) $- $- $- $- $195,000 $195,000
Facilities Maintenance 3/4-ton
Pickup with Utility Bed $- $- $- $45,000 $- $45,000
Facilities Maintenance 3/4-ton
Pickup $- $- $- $45,000 $35,000 $80,000
Engineering Compact Pickup $- $- $- $35,000 $- $35,000
Parks Maintenance 3/4-ton
Pickup $- $- $- $35,000 $- $35,000
Parks Maintenance Trailer $- $- $- $7,500 $- $7,500
Grand Total $515,000 $380,000 $696,000 $705,500 $670,000 $ 2,966,500
7 Packet Pg. 257
Item 13
CAPITAL IMPROVEMENT PROJECT PLAN
INFRASTRUCTURE INVESTMENT FUND
Infrastructure Investment Fund
Balance FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
FY
2023-24 Total
Asset
Replacement $- $75,000 $559,100 $- $- $- $634,100
Downtown
Renewal -
Broad Street -
West Side -
Higuera to
Marsh
$- $75,000 $559,100 $- $- $- $634,100
New Asset $- $912,750 $700,000 $388,000 $330,000 $- $2,330,750
Broad Street
Corridor
Access
Improvement
s
$- $80,000 $- $18,000 $ 80,000 $- $178,000
Avila Ranch -
Buckley
Extension
Class I
$- $- $200,000 $120,000 $- $- $320,000
Avila Ranch -
South Higuera
Sidewalk
$- $112,750 $- $- $- $- $112,750
Avila Ranch -
Vachell Class
2 Lanes
$- $260,000 $- $- $- $- $260,000
SL Ranch -
Bob Jones
(Calle Joaquin
to Froom)
$- $- $500,000 $250,000 $- $- $750,000
SL Ranch -
LOVR IC $- $- $- $- $250,000 $- $250,000
SL Ranch -
Madonna &
Oceanaire
Intersection
$- $120,000 $- $- $- $- $120,000
SL Ranch -
Madonna
Class I
$- $340,000 $- $- $- $- $340,000
Expenditures $- $987,750 $1,259,100 $388,000 $330,000 $- $ 2,964,850
Fund
Deposits $- $1,900,000 $119,100 $330,550 $330,550 $330,550 $ 3,010,750
Balance $500,000 $1,412,250 $272,250 $214,800 $215,350 $545,900 $545,900
8 Packet Pg. 258
Item 13
2019-21 LOCAL REVENUE MEASURE EXPENDITURES
2019-20 2020-21 2019-20 2020-21
Open Space Maintenance 40,000 40,000 80,000 C
This project supports continued implementation of the City’s adopted Open Space
Maintenance Plan. The ongoing maintenance of all fifteen City Open Space
properties is premised on the protection of natural resources, including plants,
animals, geologic and historic features and the natural areas themselves.
Maintenance over the next two years will focus on fuel-reduction of the wildland-
urban interface. Other routine maintenance includes: enhancement to existing
trailheads, maintenance and construction of approved and sustainable trails and open
space facilities for passive recreation purposes only, removal of illicit materials and
trails, improved user and natural resource safety, land restoration and stewardship
projects, invasive species treatment and control, erosion control and stabilization,
education of users via patrols and community outreach.
Open Space Acquisition 100,000 150,000 250,000 C
The City continues to actively pursue land purchases and conservation easements to
enhance the greenbelt around the City which protects watersheds and maintains
habitat connectivity. This funding is largely leveraged by grant funding. Over the
next two years, the City will focus efforts on securing a conservation easement for
the Miossi Brothers La Cuesta Ranch, which is the next phase of the project
following the acquisition of the 266 acre Miossi Open Space in 2018-19.
Laguna Lake Dredging and Sediment
Removal (including bank stabilization) 150,000 350,000 500,000
The Laguna Lake Nature Reserve, including Laguna Lake, is 344-acres of City
owned land. Laguna Lake is a naturally occurring water body although the lake and
surrounding watershed have been modified including the rerouting of Prefumo Creek
into Laguna Lake. This project, which focuses on maintenance dredging in focused
areas on the lake, is scheduled to take place in 2019-20 and 2020-21. In addition, a
bank stabilization project is planned for 2020-21.
Ranger Services
(Ranger Staffing; FTE = 2) 146,474 152,922 299,396 Funding to provide two Ranger Maintenance Workers.
Subtotal 146,474 152,922 290,000 540,000 1,129,396
Street Lighting 75,000 75,000 150,000 ST
This annual funding supports the establishment of three new street lights requested
by the general public. Locations are chosen by the proximity to Schools, pedestrian
and vehicle collision history.
Pedestrian Crossing Improvements 40,000 40,000 ST The pedestrian crossing improvements locations include Johnson Street/Sydney
Street and Tank Farm Road/Poinsettia Street.
Pedestrian and Bicycle
Pathway Maintenance 79,000 79,000 ST
This funding for pathway maintenance will improve a portion of the Bob Jones trail,
from Prado Road to Los Osos Valley Road, located along the City's Water Resource
Reclamation Facility (WRRF). Improvements will reduce the risk of accidents and
improve the overall user experience.
Description Project Title
The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens'
Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.
Operating Programs CIP 2-yr Total Funding
Open Space Preservation
MCG
Bicycle and Pedestrian Improvements
Major City Goal (MCG) = Housing (H); Sustainable Transportation (ST); Climate Action (C); Fiscal Sustainability and Responsibility (F); Downtown Vitality (D)
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Item 13
2019-21 LOCAL REVENUE MEASURE EXPENDITURES
2019-20 2020-21 2019-20 2020-21 Description Project Title
The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens'
Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.
Operating Programs CIP 2-yr Total Funding MCG
Bicycle Facility Improvements 100,000 100,000 200,000 ST
This funding allows the City to complete small-scale bicycle facility improvements
in a cost-efficient manner by incorporating important improvements into larger
projects such as annual roadway paving work. Typical improvements include
removal of storm drain grates that impact bike lanes, bike lane signing and striping,
and shared lane markings in conjunction with other larger projects.
Active Transportation Plan 100,000 100,000 ST
This project will update and expand the Bicycle Transportation Plan to include
pedestrians creating an Active Transportation Plan that addresses both bicycle and
pedestrian needs. This work will include a study of the City’s pedestrian
transportation system including the development of pedestrian polices and plans
consistent with the scale of the City’s Bicycle Transportation Plan. This plan will
also include updates for recently approved development projects and inclusion of
modern infrastructure such as buffered and protected bicycle lanes.
Downtown Renewal 325,000 80,900 405,900 D
This work continues to improve the aesthetics and safety of the Downtown core. In
19-20, this funding will be used to replace sidewalk at 858 Higuera, which doubles
as a roof of the basement of the building. Due to the deterioration of the sidewalk,
sections of concrete have exposed rebar underneath which will eventually result in
failure of the sidewalk/basement roof. In 2020-21, this funding provides part of the
cost for sidewalk replacement, new tree wells, pedestrian lighting, conduits for tree
lighting, and bike racks on Broad Street, between Marsh and Higuera. This project
will completed using LRM and other sources of funding.
Urban Forest Maintenance 175,797 175,000 350,797 C
The City’s Urban Forest is comprised of approximately 20,000 public trees. Regular
tree pruning and related maintenance provides for an attractive, healthy, and safer
urban forest. This funding will be used to provide annual tree pruning in
neighborhoods and the downtown.
Sidewalk Replacement and Installation 46,000 89,000 135,000 ST
This funding provides for replacement of damaged sidewalk and installation of new
sidewalk. This program continues the City's commitment to provide a complete and
accessible pedestrian path of travel to meet ADA standards. Replacing defective
sidewalk improves accessibility and reduces risk to users and the City.
Transportation Planning and Engineering
(Engineers, Active Transportation
Manager; FTE = 1.6)
200,678 215,023 415,701 One Active Transportation Manager and .6 FTE of a Transportation
Planner/Engineer position.
Subtotal 200,678 215,023 861,797 598,900 1,876,398
South Street Median Landscape 15,000 15,000 This project will provide funding to landscape the median South Street between
Higuera and Broad.
Traffic Congestion Relief / Safety Improvements
Major City Goal (MCG) = Housing (H); Sustainable Transportation (ST); Climate Action (C); Fiscal Sustainability and Responsibility (F); Downtown Vitality (D)
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Item 13
2019-21 LOCAL REVENUE MEASURE EXPENDITURES
2019-20 2020-21 2019-20 2020-21 Description Project Title
The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens'
Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.
Operating Programs CIP 2-yr Total Funding MCG
Transportation Safety & Operations 55,000 55,000 ST
The City completes annual safety reports which identify changes that can be made to
the City’s roadways to enhance safety. This funding will be used to implement the
highest priority safety improvements identified in the Traffic Safety Report.
Typically, these improvements included improved traffic and bicycle striping,
signage, crossings and traffic signal modification.
Traffic Safety Implementation 10,000 221,000 231,000 This funding will be used to modify and improve the Marsh and Broad Street traffic
signal and pedestrian crossing.
Traffic Signs & Striping Maintenance 25,000 25,000
This funding will be used to restripe lane lines, marked crosswalks and other
roadway indicators enhancing safety for motorists, cyclist and pedestrians. Targeted
areas include Peach Street to Bridge Street, between Santa Rosa Street and Highway
101 and Madonna Road to Vachell Lane, between Devaul Ranch Drive and Prado
Road.
Signal and Light Maintenance
(Technician; FTE = 1) 109,598 112,237 221,835 Funding to support a Signal Technician position.
Subtotal 109,598 112,237 10,000 316,000 547,835
Police Patrol Vehicles (7) 205,000 260,000 465,000 Funding to replace three police patrol vehicles in 2019-20 and four police patrol
vehicles in 2020-21.
Police Student Neighborhood Assistance
Program (SNAP) patrol vehicle 55,000 55,000 This funding will replace one police SNAP patrol vehicle with an SUV hybrid used
to respond to some calls for service in lieu of a police officer.
Community Safety Emergency Response
Communication Equipment 380,000 250,000 630,000
This project will replace the existing communication equipment and a shelter located
on South Hill in 2019-20 as well as install new communication equipment and
shelter near Highway 1 and Highland Drive. This equipment allows for radio
communication for emergency services such as police and fire. The existing
communication equipment and shelter located on South Hill have reached the end of
their useful life.
Public Safety Mobile Data Computers
(MDC), including in-car video for police
patrol vehicles
80,000 500,000 580,000
This funding will allow for intermediate repairs to the system including rapidly
repairing non-functioning equipment in public safety vehicles in 2019-20 and full
system replacement in 2020-21.
Emergency Dispatch Center
Technology and Equipment Replacement 35,000 35,000
Replacement of equipment that is utilized 24 hours a day, 365 days a year by public
safety dispatchers. This equipment includes 2 large security monitors, projector,
backend supporting equipment and replacement backup batteries.
Handheld and Vehicle
Radio Replacement 143,123 143,123
All City radio end user equipment (public safety and non-public safety) are reaching
end-of-support and/or end-of-life. The public safety portion of the equipment is
heavily used and requires a high degree of reliability. This funding will cover the
replacement of 70 Police handheld radios.
Public Safety
Major City Goal (MCG) = Housing (H); Sustainable Transportation (ST); Climate Action (C); Fiscal Sustainability and Responsibility (F); Downtown Vitality (D)
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Item 13
2019-21 LOCAL REVENUE MEASURE EXPENDITURES
2019-20 2020-21 2019-20 2020-21 Description Project Title
The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens'
Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.
Operating Programs CIP 2-yr Total Funding MCG
911 Phone System Upgrade 20,000 20,000
This will allow the City to enter into an extended support contract with a current
vendor for an additional year. This will allow the City to complete a Public Safety
Center Regionalization Study before investing in an upgrade of the entire 911
System
Fire Station Air Compressor 80,000 80,000
The air compressor at Fire Station 1 was purchased and installed in 1995 This air
compressor is used to refill air bottles used by firefighters while working in
hazardous environments. The life span of these compressors is 20 years.
Police Station Replacement Study 50,000 50,000
The current Police Department building was assessed as being insufficiently sized to
meet present and future needs of the Department and does not meet current seismic
standards. The site selected for the new facility was the same location as the existing
building at 1042 Walnut Street. This ongoing project will continue the development
of the planning package and building renderings necessary for future architectural
design, engineering, and cost estimating elements.
Fire Stations Building Maintenance 140,000 131,500 271,500
In 2019-20, this funding will replace the HVAC system at Fire Station #1. The unit
has experienced several catastrophic failures needs to be replaced. In 2020-21, the
funding will be used to replace roofs at Fire Station #1 and Fire Station #3.
City Firewall Replacement 154,863 154,863
Funding will be used to replace the City's firewall system. The current system is
outdated and parts of the system are failing, causing issues with protecting the City's
data, records, internal and mobile systems. Upgrading the system will ensure the
City meets the public safety system standards set by the Department of Justice.
City Network Security Upgrade 100,664 100,664
Funding will be used to replace the City's network security. The current system is
outdated and parts of the system are failing, causing issues with protecting the City's
data, records, internal and mobile systems. Upgrading the system will ensure the
City meets the public safety system standards set by the Department of Justice.
City Information Application
System/Virtual Private Network
Replacement
78,500 78,500
Funding will be used to replace the City's virtual private network. The current system
is outdated and parts of the system are failing, causing issues with protecting the
City's data, records, internal and mobile systems. Upgrading the system will ensure
the City meets the public safety system standards set by the Department of Justice.
Patrol Services
(Officers, Sergeant; FTE = 4) 613,991 663,940 1,277,931 Funding to support for three Patrol Officers and one Police Sergeant.
Subtotal 613,991 663,940 1,422,150 1,241,500 3,941,581
Neighborhood Street Paving
Major City Goal (MCG) = Housing (H); Sustainable Transportation (ST); Climate Action (C); Fiscal Sustainability and Responsibility (F); Downtown Vitality (D)
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Item 13
2019-21 LOCAL REVENUE MEASURE EXPENDITURES
2019-20 2020-21 2019-20 2020-21 Description Project Title
The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens'
Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.
Operating Programs CIP 2-yr Total Funding MCG
Street Reconstruction and
Resurfacing 1,650,000 1,425,054 3,075,054 ST
Funding for pavement 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 South Broad
Street, and the neighborhoods from Peach Street to Bridge Street, between Santa
Rosa Street and Highway 101 and Madonna Road to Vachell Lane, between Devaul
Ranch Drive and Prado Road.
Streets Maintenance Medium Duty Truck
with utility bed and crane 120,000 120,000 Funding to replace heavy duty truck with a utility bed and crane that is used in street
surface repairs.
Streets Maintenance Medium Duty Truck
with hook lift bed 135,000 135,000
Funding to replace a streets maintenance medium truck with hook lift bed that is
used for setting-up and breaking down security barriers at the Farmers' Market and
in street surface repairs.
CIP Project Engineering (Inspector; FTE
= 1) 101,324 107,736 209,060 Funding to support a Field Engineering Inspector position.
Streets and Sidewalk Maintenance
(Maintenance Worker; FTE = 1) 76,693 81,791 158,484 Funding to support a Streets Maintenance Worker position.
Subtotal 178,017 189,527 1,905,000 1,425,054 3,697,598
Mission Plaza Railing Replacement 35,000 35,000 Funding is used to replace or reconstruct existing railings in the Mission Plaza to
meet current ADA and Building Codes as well as increase safety for the community.
Building and Safety (Two Code
Enforcement Technicians, and one Code
Enforcement Officer; FTE = 3)
289,863 302,046 591,909 Funding supports two Code Enforcement Technicians and one Code Enforcement
Officer
Subtotal 289,863 302,046 35,000 - 626,909
Storm Drain System Replacement 205,000 50,000 255,000
This funding is used to replace and improve the City's storm drain system including
pipes, culvert and drainage inlets. Maintenance of the City's storm drain system
provides for increased flood protection and reduces the likelihood of property loss.
Without periodic maintenance repair, these structures will eventually fail and result
in unplanned street closures and impacts to the City's drainage system. Specific
locations include Bullock , Broad and Leff, Luneta & Rafael, Funston & Lawton.
San Luis Creek Bank Stabilization at
Pismo and Johnson 10,000 10,000
Funding will be used to stabilize the San Luis Creek bank, under Johnson Avenue
near Pismo Street. Stabilizing the creek bank will protect Pismo Street from further
erosion.
Storm Water Heavy Duty Truck with
Vac-Con Hydro cleaner 120,000 120,000
Replace a Vac-Con Hydro cleaner that removes debris in the City's stormwater
system. The vehicle, purchased in 2008, is no longer compliant with engine
emission standards.
Code Enforcement
Flood Protection
Major City Goal (MCG) = Housing (H); Sustainable Transportation (ST); Climate Action (C); Fiscal Sustainability and Responsibility (F); Downtown Vitality (D)
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Item 13
2019-21 LOCAL REVENUE MEASURE EXPENDITURES
2019-20 2020-21 2019-20 2020-21 Description Project Title
The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens'
Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.
Operating Programs CIP 2-yr Total Funding MCG
Creek and Flood Protection (Collection
Operators, Stormwater Management Plan;
FTE = 6)
636,534 667,282 1,303,816 Funding supports a Stormwater Code Enforcement Officer, Stormwater Collection
Operators and implementation of stormwater management.
Subtotal 636,534 667,282 205,000 180,000 1,688,816
Laguna Lake Golf Course Maintenance 10,000 20,000 30,000
Funding for this project will begin the replacement of the 40 year old irrigation
system, increase water efficiency by reducing leakage, and increase playability and
safety of the turf.
Playground Equipment Replacement 500,000 160,000 660,000
Replacing playground equipment in the City's parks limits the City's liability
exposure and keeps the City in compliance with State regulations. In 2019-20,
playground equipment will be replaced at Islay Hill Park. In 2020-21, funding will
go towards the design of replacing playground equipment at Vista Lago Park,
Meadow Park par course and Emerson Park fitness equipment.
Park Major Maintenance and Repairs 35,000 555,000 590,000
Parks require ongoing maintenance in order to continue to provide users a safe and
quality experience. This funding will address playground surfacing, Sinsheimer
Stadium irrigation, drainage replacement, and installation of hydration stations.
Mission Plaza Restroom and
Enhancements 45,000 150,000 195,000 D
This funding will complete the project scope and environmental reports in 2019-20
and fund the design and engineering plans of the replacement of the Mission Plaza
restroom.
Swim Center Building Maintenance and
Equipment Replacement 183,000 131,000 314,000 C
The therapy pool has been in operation for approximately 12 years and due to the
increase in usage, several critical maintenance items and parts need to be replaced
including the thermal blanket, chemical pumps, the roof for the main bathhouse and
the tempered water system.
Hydration Stations 3,000 3,000 C Funding to install one hydration station at either the Senior Center, Ludwick
Community Center or at the Parks and Recreation office.
City Park Parking Lot Maintenance 20,000 20,000 This funding will be used for the maintenance and repair of the parking lots at
Emerson and French parks.
Parks and Landscape Maintenance
(Maintenance Worker; FTE = 1) 62,834 66,954 129,788 Funding for a Parks Maintenance Worker position.
Subtotal 62,834 66,954 773,000 1,039,000 1,941,788
City Virtual Machine (VM) Infrastructure 5,000 95,200 100,200
Funding for this project will be used to upgrade and replace specific portions of the
VM infrastructure. The City’s VM infrastructure consists of seventeen hosts running
a variety of software that is vital to daily City operation.
Multi-Site Energy Management System
Software - HVAC - 100,000 100,000
Funding for this project will replace the twenty year old software and associated
system equipment that operates the HVAC systems in eight City facilities. These
improvements will bring the City up to industry standards and enable City facilities
to be more energy efficient.
Parks and Recreation/Senior Programs and Facilities
Other Vital Services and Capital Projects
Major City Goal (MCG) = Housing (H); Sustainable Transportation (ST); Climate Action (C); Fiscal Sustainability and Responsibility (F); Downtown Vitality (D)
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Item 13
2019-21 LOCAL REVENUE MEASURE EXPENDITURES
2019-20 2020-21 2019-20 2020-21 Description Project Title
The following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G), and the recommendations of the Citizens'
Revenue Enhancement Oversight Commission (REOC). The categories listed were developed by REOC and are not aligned with City functions.
Operating Programs CIP 2-yr Total Funding MCG
City Hall Fire Sprinkler Connection and
American with Disabilities Act (ADA)
transition plan implementation
67,920 9,743 77,663
Funding will be used to install an internal backflow device to City Hall's fire
sprinkler system, bringing the system up to State regulation standards. Funding for
the ADA transition plan will be used for minor upgrades to signage and accessibility
that meets Federal ADA requirements for government buildings.
Subtotal - - 72,920 204,943 277,863
2,237,989 2,369,931 5,574,867 5,545,397 15,728,184 Total Local Revenue Measure Uses
Major City Goal (MCG) = Housing (H); Sustainable Transportation (ST); Climate Action (C); Fiscal Sustainability and Responsibility (F); Downtown Vitality (D)
Packet Pg. 265
Item 13
R ______
RESOLUTION NO. (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, CONFIRMING THE 2019-20 LIST OF
PROJECTS FUNDED BY SB 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017
(Chapter 5, Statutes of 2017) was passed by the California legislature and signed into law by the
Governor in April 2017 to address the significant multi-modal transportation funding shortfalls
statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the
residents of the City are aware of the projects proposed for funding in our community and which
projects have been completed each fiscal year; and
WHEREAS, the City must include a list of all projects proposed to receive funding from
the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the Cit y budget,
which must include a description and the location of each proposed project, a proposed schedule
for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City, will receive an estimated $1,175,000 in RMRA funding in Fiscal
Year 2019-20 from SB 1; and
WHEREAS, this is the third year in which the City is receiving SB 1 funding which will
enable the City to continue essential road maintenance and rehabilitation projects, safety
improvements, repairing and replacing aging bridges, and increasing access and mobility options
for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into
our community’s transportation priorities, and budgeting process that has been adopted by City
Council that includes a full listing of Capital Improvements Projects and funding sources including
SB-1; and
WHEREAS, the City used a Pavement Management System and other goals such as the
complete streets elements and bicycle and pedestrian safety to develop the SB 1 project list to
ensure revenues are being used on the most high-priority and cost-effective projects that also meet
the community’s priorities for transportation investment; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate
streets/roads, sidewalks, and add active transportation infrastructure throughout the City this year
and similar projects into the future; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment
found that the County of San Luis Obispo’s streets and roads are in an “at -risk” condition but the
City of San Luis Obispo’s streets and roads are in a “good” condition, this revenue nonetheless
will help the City maintain and enhance the overall quality of our road system and, over the next
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Item 13
Resolution No. _____ (2019 Series) Page 2
R ______
decade, will facilitate critical improvements to transportation that will assist in greenhouse gas
emission reductions and active transportation safety; and
WHEREAS, if the Legislature and Governor failed to act, continued reductions in the
State gas tax, as well as lack of indexing of the Federal and State gas tax to key indicators such as
inflation, has reduced available revenue to the City for these purposes; and
WHEREAS, cities and counties own and operate more than 81 percent of streets and roads
in California, and people are dependent upon a safe, reliable local transportation network; and
WHEREAS, modernizing the local street and road system, incorporating complete street
elements and improving active transportation facilities provides well-paying construction jobs and
boosts local economies; and
WHEREAS, the local street and road and active transportation system is critical for farm
to market needs, interconnectivity, multimodal needs, greenhouse gas emission reductions and
commerce; and
WHEREAS, maintaining and preserving the local street and road system in good condition
will reduce drive times and traffic congestion, improve bicycle safet y, and make the pedestrian
experience safer and more appealing, which leads to reduce vehicle emissions helping the State
achieve its air quality and greenhouse gas emissions reductions goals; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads
infrastructure with a focus on basic maintenance and safety, investing in complete streets
infrastructure and active transportation projects, and using cutting-edge technology, materials and
practices, will have significant positive co-benefits statewide.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
that as follows:
1. The foregoing recitals are true and correct and are adopted as the findings of the
City Council.
2. The following list of proposed pro jects will be funded in-part or solely with fiscal
year 2019-20 Road Maintenance and Rehabilitation Account revenues:
2019-20 Projects
Project Location 2019-20
Funding
Anticipated
Year of
Completion
Estimated
Useful
Life (min)
1. Broad Street
Paving
Broad Street from Tank
Farm to Farm House
Lane
$925,000 2019 25 Years
2. Anholm Greenway
Implementation
Foothill to Ramona $250,000 2019 25 Years
Total $1,175,000 -
Packet Pg. 267
Item 13
Resolution No. _____ (2019 Series) Page 3
R ______
3. The following previously proposed and adopted projects may utilize fiscal year
2019-20 Road Maintenance and Rehabilitation Account revenues in their delivery.
With the relisting of these projects in the adopted fiscal year resolution, the City is
reaffirming to the public and the State our intent to fund these projects with Road
Maintenance and Rehabilitation Account revenues:
2018-19 Projects
Project Location Funding Anticipated
Year of
Completion
Estimated
Useful Life
(min)
3. Broad Street Bike
Blvd Phase 1
Foothill to Ferrini $384,400 2019 20 Years
4. El Capitan Bridge El Capitan Way $100,000 2019 100 Years
5. Concrete Paver
Sidewalk
Santa Barbara – Broad
to Leff
$350,000 2019 50 Years
Total $834,400
2017-18 Projects
6. Broad Street Bike
Blvd.
Broad Street from US
101 to Foothill
$18,000 2019 20 Years
7. Safe Routes to
School
Intersection of Foothill
and Ferrini
$300,000 2019 20 Years
Total $318,000
Upon motion of seconded by and on the following roll call
vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _______________________, 2019.
Mayor Heidi Harmon
ATTEST:
____________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
Packet Pg. 268
Item 13
Resolution No. _____ (2019 Series) Page 4
R ______
_____________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, 2019.
____________________________________
Teresa Purrington
City Clerk
Packet Pg. 269
Item 13
4/16/2019 Item 13 ‐ Staff Presentation
1
Strategic Budget Direction
April 16, 2019
2019‐21 Financial Plan
City Manager Message
Consistent and comprehensive fiscal policies provide a solid foundation
for the long‐term fiscal health of a City.
General Fund Revenue Stabilization Fund of $1 million for the purposes
of offsetting unanticipated fluctuations in general fund revenues.
Significant Operating Budget Changes (SOBC): core services & advance
major city goals.
Capital Projects Reserve Fund. The City will maintain a reserve for the
purposes of offsetting unanticipated cost increases.
$32 million in extra CalPERS Payments.
$13.8 million in 115 Trust
Avoid $19 Million in interest payments.
Responsive, innovative, transformative and focused Major City Goals
Work Programs.
1
2
4/16/2019 Item 13 ‐ Staff Presentation
2
Recommendation
1. Review updated General Fund and Enterprise Funds’ Five‐Year Fiscal
Forecasts (Attachment A); and
2. Review and provide guidance to the City Manager regarding
proposed Major City Goal work programs (Attachment B); and
3. Review and provide guidance to the City Manager regarding the
recommended use and allocation of one‐time and ongoing budget
resources to fund proposed Significant Operating Budget Changes
(SOBCs) (Attachment C), the Capital Improvement Plan (CIP), Fleet
Replacement Fund, Information Technology (IT) Replacement Fund,
Major Facility Replacement Fund, and the Infrastructure Investment
Fund (Attachment D) and the proposed use of Local Revenue
Measure Funding (Attachment E); and
Recommendation (Continued)
4.Review and provide guidance to the recommendation from the
Revenue Enhancement Oversight Commission as to the use of the Local
Revenue Measure revenue (Attachment E); and
5. Approve a policy for the funding of an ongoing public safety
equipment replacement project; a change to the Insurance Fund policy;
and a policy pertaining to Building Permit Plan Check Services; and
6. Receive a status update on the CalPERS unfunded liability and the
City’s current pay‐down scheduled based on its implemented Fiscal
Health Response Plan (FHRP).
7. Adopt a Resolution defining a list of projects funded by SB‐1 (The
Road Repair and Accountability Act of 2017) for Fiscal Year 2019‐20.
3
4
4/16/2019 Item 13 ‐ Staff Presentation
3
Presentation Overview
Major City Goal Work Programs
Requested Resources
(Capital Improvement Plan and Significant Operating Budget
Changes)
Policy Changes
Fiscal Outlook
City Council Vision
The City of San Luis Obispo is a
dynamic community embracing its
future while respecting its past with
core values of civility, sustainability,
diversity, inclusivity, regionalism,
partnership, and resiliency.
Major City Goals 2019‐21
Agenda Package page 97
5
6
4/16/2019 Item 13 ‐ Staff Presentation
4
Fiscal Sustainability &
Responsibility Sustainable Transportation
Climate Action Downtown Vitality
Housing
Major City Goals 2019‐21
7
8
4/16/2019 Item 13 ‐ Staff Presentation
5
Housing
Goal Statement
Facilitate the production of housing with an update of the
Housing Element, including an emphasis on affordable housing
(including unhoused people) and workforce housing through the
lens of climate action and regionalism.
Proposed Work Scope:
1.Prioritize current and future housing production
2.Facilitate ongoing housing production
3.Concentrate on production of diverse housing types
Agenda Package page 97
Housing
Key Activities:
1. Affordable Housing Nexus Study
2. Update General Plan Housing Element
3. Launch a program to support production of the
“missing middle” housing type
4. Affordable Housing Inventory Monitoring
Planned Investment
Total
Investment
$1,399,954
Capital
Improvement
Plan $0
Operating
Budget
$1,399,954
Agenda Package Page 98
9
10
4/16/2019 Item 13 ‐ Staff Presentation
6
Goal Statement:
Continue to implement the City’s Fiscal Responsibility
Philosophy with a focus on efficiencies, strategic economic
development, unfunded liabilities, and infrastructure financing
(Funding the Future).
Fiscal Sustainability
& Responsibility
Proposed Work Scope:
1.Invest in the continued fiscal health of the City
2.Continue organizational effectiveness
3.Pursue economic development opportunities
4.Maintain emergency preparedness
5.Pursue infrastructure financing
Agenda Package Page 98
Planned Investment
Fiscal Sustainability
& Responsibility
Key Activities:
1. Down‐payments of CalPERS unfunded liability and introduction
of a 115 Pension Trust Fund
2. Phase 1 of Organization of the Future
3. Update Economic Development Strategic Plan
4. Update the City’s Safety Element and hazard mitigation plans
5. Funding the Future
Total
Investment
$13,997,804
Capital
Improvement
Plan $0
Operating
Budget
$13,997,804
Agenda Package Page 99
11
12
4/16/2019 Item 13 ‐ Staff Presentation
7
Sustainable Transportation
Goal Statement:
Enhance accessible regional transit, bicycle, and pedestrian
mobility to promote a transition to a car‐free or shared‐car
lifestyle and to reduce greenhouse gases.
Proposed Work Scope:
1.Create safe and accessible walking and biking opportunities
2.Prioritize infrastructure supporting housing and VMT reduction
3.Enhance transit service
4.Study emerging mobility trends and technology
5.Promote community education and engagement
Agenda Package Page 99
Sustainable Transportation
Key Activities:
1. Maintain, improve and construct new pedestrian and bike
facilities and complete Active Transportation Plan
2. Advance the Prado Road Interchange to support housing and
reduce Vehicle Miles Traveled
3. Complete Railroad Safety Trail (Taft to Pepper), California/Taft
Roundabout, & Anholm Neighborhood Greenway Phase 1‐2
4. Study new transportation trends and technologies and update
existing polices to support mode shift objectives
Planned Investment
Total
Investment
$55,671,448
Capital
Improvement
Plan
$54,379,948
Operating
Budget
$1,291,500
Agenda Package Page 99
GD [2]8HM4
13
14
Slide 14
GD [2]8 [@Horn, Matt] hey horn - let jake and luke add projects - those activities are the same as the scope slide
above
Grigsby, Daryl, 4/11/2019
HM4 Revised to summarize key activities, but change as needed.
Horn, Matt, 4/11/2019
4/16/2019 Item 13 ‐ Staff Presentation
8
Climate Action
Goal Statement:
In response to the climate crisis, continue to update and implement the Climate
Action Plan for carbon neutrality, including preservation and enhancement of
our open space and urban forest and planning for resilience.
Proposed Work Scope
1. Build organizational and community capacity and processes for substantial,
sustained, and effective climate action
2. Implement priority Climate Action Plan measures to lay the foundation for
achieving carbon neutrality by 2035
3. Assess, plan, and implement measures to enhance the community’s
resilience to the impact of climate change.
Agenda Package Page 99
Key Activities:
1. Climate Action Capacity Building Resources
2. Priority Climate Action Plan Implementation
3. Adaptation and Resilience
Planned Investment
Climate Action
Total
Investment
$17,376,297
Capital
Improvement
Plan
$15,909,797
Operating
Budget
$1,466,500
Agenda Package Page 100
15
16
4/16/2019 Item 13 ‐ Staff Presentation
9
Downtown Vitality
Proposed Work Scope:
1. Enhanced safety through dedicated police presence and installation of safety
elements
2. Maintenance of sidewalk, urban forest, and creek environment
3. Activation of public spaces, public art installations, event and lodging
promotion
4. Ongoing support for downtown businesses
Goal Statement:
Support the economic and cultural heart of the City with
attention to safety, maintenance, infrastructure, and amenities.
Agenda Package Page 100
Planned Investment
Key Activities
1. Police presence and social worker support in Downtown
2. Downtown Renewal projects
3. Begin construction on the Palm‐Nipomo parking structure
4. Downtown Concept Plan, Mission Plaza Concept Plan
implementation
Downtown Vitality
Total
Investment
$41,866,440
Capital Plan
$40,545,000
Operating
Budget
$1,321,440
Agenda Package Page 101
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18
4/16/2019 Item 13 ‐ Staff Presentation
10
Total Investment in Major City Goals
Total
Investment
$130,311,943
Capital
Improvement
Plan
$110,834,745
Operating
Budget
$19,477,198
Significant Operating Budget Changes
Cost Control Measure
Fiscal Health Response Plan
Criteria:
a)Essential for the protection of health & safety
b)Needed for the advancement of Major City Goals
c)Allowing for future cost reductions through
reorganizations.
Agenda Package page 105
19
20
4/16/2019 Item 13 ‐ Staff Presentation
11
General Fund Significant Operating Budget Changes
Applicable MCG
One‐Time
2019‐20 2020‐21
Fiscal Sustainability $226,500 $244,000
Climate Action $170,000 $ 15,000
Downtown Vitality $ 30,000 $ 6,100
Housing $460,271 $268,797
Total Ask $886,771 $533,897
Revenue Offset $100,000 $ 6,100
Total Investment $786,771 $527,797
Agenda Package page 106
General Fund Significant Operating Budget Changes
Applicable MCG
Ongoing
2019‐20 2020‐21
Fiscal Sustainability $ 871,819 $1,034,970
Climate Action $ 85,000 $ 83,000
Downtown Vitality $ 227,695 $ 227,695
Housing $ 103,823 $ 106,823
Total Ask $1,288,127 $1,454,498
Revenue Offset $ 372,695 $ 375,695
Total Investment $ 915,432 $1,078,803
Agenda Package page 107
21
22
4/16/2019 Item 13 ‐ Staff Presentation
12
Significant Operating Budget Changes
Staffing Additions – 5 positions
Current Staffing
99%
Additions
1%
Position Cost Funding Source
Housing Coordinator $ (61,177) General Fund
Analyst Infrastructure Financing $ 128,000 Development Fees /General Fund
Cannabis Detective $ 189,000 Cannabis Fees/General Fund
DT Sergeant & Field Technician $ 227,695 GST Lease
Total Cost To General Fund $ 150,823
Agenda Package page 107
General Fund Capital Improvement
Program
Maintain Existing
Assets
Major City Goal
Investments
First full annual
allocation of SB 1
and one‐time SB
1090 funding
Continuation of
Infrastructure
Investment Fund
Priority of Local
Revenue Measure
on Capital
Investments
23
24
4/16/2019 Item 13 ‐ Staff Presentation
13
Annual Asset
Maintenance
Asset
Replacement
New Assets
(including Development
Agreement projects)
General Fund
Capital Improvement Plan
Agenda Package page 108
General Fund 19‐21 CIP, $28.1 M
(Local Revenue Measure, grants, debt
financing, SB 1 and SB 1090)
New Assets
$13.6 M
Asset
Replacement
$3.65 M
Annual Asset Maintenance
$10.9 M
Agenda Package page 111
25
26
4/16/2019 Item 13 ‐ Staff Presentation
14
Local Revenue Measure (LRM)
$1,129,396 , 7%
$1,876,398 , 12%
$547,835 , 3%
$3,941,581 , 25%
$3,697,598 , 24%
$626,909 , 4%
$1,688,816 , 11%
$1,941,788 , 12%
$277,863 , 2%
(Operating and Capital $15.7M)
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 and Recreation/Senior
Programs and Facilities
9. Other Vital Services and
Capital Projects
Agenda Package Page 112
Local Revenue Measure (LRM)
2019‐21 Financial Plan
Local Revenue
Measure
Capital Expenditure
Percentage
Operating Expenditure
Percentage
Budget % of Budget Budget % of Budget
FY 2019‐20 $5,574,867 71% $2,237,989 29%
FY 2020‐21 $5,545,397 70% $2,369,931 30%
Total Investment $11,120,264 100% $4,607,920 100%
Agenda Package Page 112
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4/16/2019 Item 13 ‐ Staff Presentation
15
29
Policy Changes and Additions
Insurance Benefit Fund
•Name change to Insurance Fund
•Moving all insurance related expenditures to the
fund
Essential Safety Equipment
Balance and Reserves policies add:
K. The City will carry forward year‐end project balance
designated for essential safety equipment indefinitely.
Agenda Package Page 104
30
Building Permit Plan Check Services
User Fee Cost Recovery Goals add:
H. The City of San Luis Obispo offers building permit plan
check services through consultants at a set price, not to
exceed 65% of the City’s fee for the service. Building
Permit Plan Check services are offered by the City on a
100% cost‐recovery basis, and the service is provided after
the fee is paid in full. As a result, the Finance Director is
authorized to make appropriations from the related
revenue account to cover the cost of the services provided.
Policy Changes and Additions
Agenda Package Page 105
29
30
4/16/2019 Item 13 ‐ Staff Presentation
16
Five‐Year Fiscal Outlook
Revenue
Projected
FY 20
Projected
FY 21
Projected
FY 22
Projected
FY 23
Projected
FY 24
Total Tax & Franchise Revenue 62,856$ 65,097$ 66,268$ 67,435$ 68,566$
Total Fees & Other Revenue $ 14,604 $ 13,469 $ 14,000 $ 14,290 $ 14,584
Total Revenue $ 77,461 $ 78,566 $ 80,268 $ 81,725 $ 83,150
Use of Funds
Total Operating Expenditure $ 62,955 $ 64,315 $ 65,388 $ 67,080 $ 68,560
Debt Service 2,795$ 2,391$ 3,000$ 3,000$ 3,000$
Capital Expenditures 9,645$ 7,700$ 8,538$ 8,699$ 8,880$
Transfers 336$ 709$ 625$ 540$ 454$
Total Expenditure $ 75,732 $ 75,115 $ 77,551 $ 79,319 $ 80,894
Beginning Fund Balance $ 18,176 $ 16,905 $ 17,357 $ 18,073 $ 18,480
Revenue Over/(Under) Expenses $ 1,729 $ 3,452 $ 2,717 $ 2,406 $ 2,256
Ending Fund Balance $ 19,905 $ 20,357 $ 20,073 $ 20,480 $ 20,736
Undesignated Fund Balance $ 3,221 $ 3,299 $ 3,491 $ 3,701 $ 4,126
Normalized Fund Balance 93$ 78$ 191$ 210$ 425$
Agenda Package Page 126
CalPERS Pension Paydown
General Fund Enterprise
Funds
Total
Payments
$28.4 million $3.6 million $32 million
General Fund Enterprise
Funds
Total
Investment
$12.2 million $1.6 million $13.8 million
Trust Fund Payments through 2024‐25
Additional Payments to CalPERS through 2028‐29
Agenda Package Page 102
31
32
4/16/2019 Item 13 ‐ Staff Presentation
17
Business Activities
Four Enterprise Funds
Parking
Sewer
Transit
Water
Agenda Package Page 113
Agenda Package Page 117 ‐120
Parking Fund
Significant Operating Budget Changes
Significant Operating Budget Changes
One‐Time Ongoing
2019‐20 2020‐21 2019‐20 2020‐21
1 Parking Structure Cleaning
$26,000 $26,000
2 Augmentation of Rideshare
$30,000 $30,000
3 Parking Lot & Structure Security
$60,000 $60,000
Parking Fund $116,000 $116,000
33
34
4/16/2019 Item 13 ‐ Staff Presentation
18
Parking Fund CIP $30 M
Agenda Package page 120
New Assets
$28.6M
Asset
Replacement
$564,500
Annual Asset
Maintenance $900,000
Parking Fund
Projected
FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23 FY 2023‐24
Revenues
Investment and Property Revenues $ 61,100 $ 59,400 $ 17,800 $ 15,200 $ 11,400
Fines and Forfeitures $ 631,700 $ 647,400 $ 647,400 $ 647,400 $ 647,400
Total Parking Service Charges $ 4,691,000 $ 5,323,600 $ 5,590,300 $ 5,592,800 $ 5,595,300
Other Revenues $ 13,300 $ 13,300 $ 13,700 $ 13,700 $ 14,100
Total Revenues $ 5,397,100 $ 6,043,700 $ 6,269,200 $ 6,269,100 $ 6,268,200
Use of Funds
Operating Expenses $ 2,546,681 $ 2,616,853 $ 2,653,253 $ 2,822,562 $ 3,011,106
General Government $ 604,900 $ 626,300 $ 642,100 $ 658,200 $ 674,400
Capital Improvement Plan Projects $ 1,552,200 $ 30,114,000 $ 1,251,700 $ 1,286,800 $ 1,282,500
Debt Service $ 856,800 $ 855,500 $ 2,104,200 $ 2,100,500 $ 2,101,000
Total Expenditures $ 5,560,581 $ 34,212,653 $ 6,651,253 $ 6,868,062 $ 7,069,006
Other Sources (Uses)
Proceeds from Debt Financing $ 20,000,000 $ ‐ $ ‐ $ ‐
Other $ (175,000) $ (145,000) $ (145,480) $ (148,390) $ (151,357)
Total Other Sources (Uses)$ (175,000) $ 19,855,000 $ (145,480) $ (148,390) $ (151,357)
Beginning Working Capital $ 13,193,568 $ 12,855,087 $ 4,541,134 $ 4,013,601 $ 3,266,249
Revenues Over (Under) Expenses $ (338,481) $ (8,313,953) $ (527,533) $ (747,352) $ (952,163)
Ending Working Capital $ 12,855,087 $ 4,541,134 $ 4,013,601 $ 3,266,249 $ 2,314,086
Operating Reserve $ 2,571,017 $ 908,227 $ 802,720 $ 653,250 $ 462,817
CalPERS Downpayment $ 81,440 $ 58,172 $ 58,172 $ 38,781 $ 38,781
Unreserved Working Capital $ 10,202,629 $ 3,574,735 $ 3,152,709 $ 2,574,218 $ 1,812,487
Parking Fund Five Year Forecast
Agenda Correspondence
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4/16/2019 Item 13 ‐ Staff Presentation
19
Sewer Fund
Significant Operating Budget Changes
Agenda Package page 116
Significant Operating Budget Changes
One‐Time Ongoing
2019‐20 2020‐21 2019‐20 2020‐21
1 WRRF Maintenance
$35,000 $19,225 $19,255
2 SCADA System
$8,000 $4,083 $4,083
3 Education & Training
$8,750
4 Electric Service ‐ WRRF
$10,000 $90,000
5 Various Studies
$22,500 $22,500
6 Association Fees
$12,470 $12,470
7 Overtime
$13,000
8 Regulatory Fee
$10,600
9 Chemicals
$113,175
Sewer Fund Subtotal $51,750 $126,175 $68,278 $158,908
Sewer Fund 19‐21 CIP, $111.3 M
New Assets
$107.5 M
Asset
Replacement
$2.8 M
Annual Asset
Maintenance $1 M
37
38
4/16/2019 Item 13 ‐ Staff Presentation
20
‹#›
Sewer Fund
Agenda Package page 127
Sewer Fund Five Year Forecast
Revenue Projected
FY 20 Projected
FY 21 Projected FY
22 Projected FY
23 Projected FY
24
Total Sewer Service Charges $ 16,691 $ 17,776 $ 18,932 $ 20,162 $ 20,767
Total Fees & Other Revenue $ 65,052 $ 43,841 $ 16,668 $ 1,181 $ 760
Total Revenue $ 81,743 $ 61,617 $ 35,600 $ 21,343 $ 21,527
Use of Funds
Operating Expenditures $ 7,258 $ 7,558 $ 7,960 $ 8,144 $ 8,335
Debt Service $ 4,316 $ 4,318 $ 7,276 $ 7,273 $ 7,274
Capital Expenditures $ 65,484 $ 45,770 $ 20,157 $ 5,506 $ 1,225
Transfers $ 2,202 $ 2,243 $ 2,286 $ 2,328 $ 2,372
Total Expenditure $ 79,260 $ 59,899 $ 37,679 $ 23,251 $ 19,206
Beginning Working Capital $ 30,961 $ 33,444 $ 35,172 $ 33,093 $ 31,185
Revenue Over/(Under) Expenses $ 2,483 $ 1,728 $ (2,079) $ (1,908) $ 2,320
Ending Working Capital $ 33,444 $ 35,172 $ 33,093 $ 31,185 $ 33,505
Operating Reserve $ 2,755 $ 2,824 $ 3,504 $ 3,549 $ 3,596
Rate Stabilization $ 835 $ 889 $ 947 $ 1,008 $ 1,038
CalPERS Down Payment $ 252 $ 180 $ 180 $ 120 $ 120
UFL Trust Fund $ 120 $ 120 $ 120 $ 120 $ 96
Unreserved Working Capital‐Year End $ 29,482 $ 31,159 $ 28,343 $ 26,388 $ 28,655
Transit Fund
TRANSIT FUND FIVE YEAR FORECAST
2019-21 Financial Plan
FY 18-19
Budget (MY) FY 2019-20 FY 2020-21
Projected FY
2021-22 FY 2022-23 FY 2023-24
REVENUES
Federal 5307 1,459,636 1,488,983 1,511,318 1,533,988 1,556,998 1,580,353
State TDA 1,863,334 1,803,544 1,830,597 1,858,056 1,885,927 1,914,216
Local Pass Sales & Cash Fares 771,779 822,991 845,634 868,941 892,934 917,533
Total: 4,094,749 4,115,518 4,187,549 4,260,985 4,335,859 4,412,102
EXPENDITURES
Purchased Transportation 2,589,367 2,683,962 2,738,224 2,792,617 2,847,143 2,902,051
Fuel & Maintenance 546,733 550,754 553,578 556,444 559,353 562,306
Overhead/Admin 500,068 591,119 595,591 600,951 606,457 612,073
Cost Allocation 319,987 326,387 328,019 331,299 334,612 337,958
Total: 3,956,155 4,152,222 4,215,412 4,281,311 4,347,565 4,414,388
Beginning Working Capital 2,548,269 2,686,863 2,650,159 2,622,297 2,601,970 2,590,264
Revenues Over/Under Expenditures 138,594 -36,704 -27,863 -20,326 -11,706 -2,286
Ending Working Capital 2,686,863 2,650,159 2,622,297 2,601,970 2,590,264 2,587,978
Operating Reserve 537,373 823,104 837,510 852,197 867,172 882,420
CalPERS Downpayment 19,778 19,778 14,127 14,127 9,418 9,418
Unreserved Working Capital 2,129,712 1,807,277 1,770,659 1,735,646 1,713,674 1,696,139
Agenda Correspondence
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4/16/2019 Item 13 ‐ Staff Presentation
21
Water Fund
Significant Operating Budget Changes
Agenda Package page 116
Significant Operating Budget Changes
One‐Time Ongoing
2019‐20 2020‐21 2019‐20 2020‐21
1 Nacimiento Operating Expenses
$255,500
2 Salinas Reservoir – Pipeline Repair
$1,750,000 $142,000 $142,000
3 Electric Service – Water
Distribution
$9,000 $9,000
4 Machinery & Equipment
$25,000
5 Treatment – TTHM
$102,620 $102,620
6 Chemicals
$40,895 $41,391
7 Water Treatment Plant Equipment
$10,000 $10,000
8 Electric Service – Water Treatment
Plant
$13,000 $13,000
9 Water Treatment Plant Overtime
$42,000 $42,000
10 Various Studies
$37,550 $37,550
Water Fund Subtotal $2,082,500 $52,000 $345,065 $345,561
Water Fund 19‐21 CIP, $22 M
New Assets
$16 M
Asset
Replacement
$3.1 M
Annual Asset
Maintenance $2.9 M
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4/16/2019 Item 13 ‐ Staff Presentation
22
Water Fund
Agenda Package page 128
Water Fund Long‐term Forecast
Revenue Projected
FY 20 Projected
FY 21 Projected FY
22 Projected FY
23 Projected FY
24
Total Water Sales Revenue $ 21,237 $ 22,340 $ 23,526 $ 24,820 $ 25,316
Total Fees & Other Revenue $ 6,648 $ 9,949 $ 1,150 $ 14,950 $ 1,151
Total Revenue $ 27,885 $ 32,349 $ 24,676 $ 39,770 $ 26,467
Use of Funds
Operating Expenditures $ 17,568 $ 15,717 $ 16,133 $ 16,378 $ 16,649
Debt Service $ 3,006 $ 3,019 $ 3,581 $ 3,987 $ 3,989
Capital Expenditures $ 10,251 $ 11,778 $ 3,763 $ 8,703 $ 9,445
Transfers $ 2,108 $ 2,145 $ 2,184 $ 2,223 $ 2,263
Total Expenditure $ 32,934 $ 32,659 $ 25,661 $ 31,285 $ 32,346
Beginning Working Capital $ 25,724 $ 20,774 $ 20,463 $ 19,477 $ 27,963
Revenue Over/(Under) Expenses $ (4951) $ (311) $ (986) $ 8,485 $ (5,879)
Ending Working Capital $ 20,774 $ 20,463 $ 19,477 $ 27,963 $ 22,083
Operating Reserve $ 4,517 $ 4,176 $ 4,380 $ 4,516 $ 4,580
Rate Stabilization $ 2,050 $ 2,163 $ 2,282 $ 2,407 $ 2,456
CalPERS Down Payment $ 252 $ 180 $ 180 $ 120 $ 120
UFL Trust Fund $ 120 $ 120 $ 120 $ 120 $ 96
Unreserved Working Capital‐Year End $ 13,835 $ 13,824 $ 12,515 $ 20,800 $ 14,831
Next Steps
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4/16/2019 Item 13 ‐ Staff Presentation
23
Budget Adoption
Review & Adoption of 2019‐21 Financial Plan 6/4
Enterprise Fund Review 6/4
Continued 2019‐21 Financial Plan (if needed) 6/18
Water & Sewer Rates – Proposition 218
Hearing 6/18
Review & Adoption of 2019‐21 Financial Plan 6/25
(If needed)
Recommendation
1. Review updated General Fund and Enterprise Funds’ Five‐Year Fiscal
Forecasts (Attachment A); and
2. Review and provide guidance to the City Manager regarding
proposed Major City Goal work programs (Attachment B); and
3. Review and provide guidance to the City Manager regarding the
recommended use and allocation of one‐time and ongoing budget
resources to fund proposed Significant Operating Budget Changes
(SOBCs) (Attachment C), the Capital Improvement Plan (CIP), Fleet
Replacement Fund, Information Technology (IT) Replacement Fund,
Major Facility Replacement Fund, and the Infrastructure Investment
Fund (Attachment D) and the proposed use of Local Revenue
Measure Funding (Attachment E); and
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4/16/2019 Item 13 ‐ Staff Presentation
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Recommendation (Continued)
4. Approve a policy for the funding of an ongoing public safety
equipment replacement project; a change to the Insurance Fund policy;
and a policy pertaining to Building Permit Plan Check Services.
5. Receive a status update on the CalPERS unfunded liability and the
City’s current pay‐down scheduled based on its implemented Fiscal
Health Response Plan (FHRP).
6. Receive a status update on the CalPERS unfunded liability and the
City’s current pay‐down scheduled based on its implemented Fiscal
Health Response Plan (FHRP).
7. Adopt a Resolution defining a list of projects funded by SB‐1 (The
Road Repair and Accountability Act of 2017) for Fiscal Year 2019‐20.
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