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HomeMy WebLinkAbout04-16-2019 Item 13, Strategic Budget Direction and Major City Goal Work for 2019-21 Financial PlanDepartment Name: Finance Cost Center: For Agenda of: Placement: Estimated Time: 2001 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 Packet Pg. 95 Item 13 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 Packet Pg. 96 Item 13 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. Packet Pg. 97 Item 13 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 $- Packet Pg. 98 Item 13 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 Packet Pg. 99 Item 13 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. Packet Pg. 100 Item 13 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. Packet Pg. 101 Item 13 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. Packet Pg. 102 Item 13 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 Packet Pg. 103 Item 13 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. Packet Pg. 104 Item 13 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: Packet Pg. 105 Item 13 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 Packet Pg. 106 Item 13 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 $1,078,803 *Property based improvement district Efforts to Reduce Liability There were additional requests for funding that pertained to lowering the City’s exposure to liability claims. Since the Human Resources Department currently has funding left in the encumbrance for liability insurance and related claims, staff recommends using this funding for the requests fitting within the intended use. If approved, the encumbrance would be released, and the funding distributed according to the requests below: Packet Pg. 107 Item 13 2019-20 2020-21 Fire Training Pilot Program 40,000$ 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: Packet Pg. 108 Item 13 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 Packet Pg. 109 Item 13 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 Packet Pg. 110 Item 13 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: Packet Pg. 111 Item 13 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 Packet Pg. 112 Item 13 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 Packet Pg. 113 Item 13 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 Packet Pg. 114 Item 13 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. Packet Pg. 115 Item 13 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 Packet Pg. 116 Item 13 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 Packet Pg. 117 Item 13 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. Packet Pg. 118 Item 13 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 Packet Pg. 119 Item 13 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. Packet Pg. 120 Item 13 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. Packet Pg. 121 Item 13 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. Packet Pg. 122 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 $1,606,600 *considers funding from outside sources. Capital Improvement Plan (CIP) The proposed CIP was developed with consideration of the three basic elements of 1) Asset Maintenance, 2) Asset Replacement, and 3) New Assets (related to Major Council Goals or development areas.) The selection of the projects was carefully aligne d with available resources while also providing increased funding for critical IT related replacement projects. As previously mentioned in the CIP section of this report, staff will return with the preliminary Financial Plan regarding the needed resources to deliver the CIP presented with this report. Funding sources will be evaluated and adjusted to provide a balanced budget for Council consideration. Fiscal Forecast Summary Overall, the fiscal forecast includes an ambitious work program, both for delivery of MCG work programs, core services, the down-payment of pension obligations, and the establishment of reserve and trust funds to counter -act potential changes in the economic climate and the pension realm. Packet Pg. 123 Item 13 ALTERNATIVES The City Council can provide direction to adjust SOBC, Major City Goal work programs, CIP, IT, and Fleet funding to accomplish other service or outcomes than those provided and summarized in this Staff report and related attachments. Specific direction should be provided if the Council would like to add or delete any recommended allocation of funding. Attachments: a - 5-year Forecast b - Major City Goals c - SOBCs- One-time and Ongoing d - General Fund CIP e - 2019-21 LRM Expenditures f - SB1 Resolution Packet Pg. 124 Item 13 2019-21 FINANCIAL PLAN FIVE-YEAR FORECASTS FUND PAGE GENERAL FUND 1 SEWER FUND 2 WATER FUND 3 TRANSIT FUND 4 PARKING FUND 5 ATTACHMENT A Packet Pg. 125 Item 13   Budget         FY 19 Projected         FY 20 Projected         FY 21 Projected FY  22 Projected FY  23 Projected FY  24 Tax & Franchise Revenue Sales & Use Tax 25,467$      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 1 Packet Pg. 126 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$          2 Packet Pg. 127 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$           3 Packet Pg. 128 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 Packet Pg. 129 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. 1 Packet Pg. 130 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. 2 Packet Pg. 131 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 4 Packet Pg. 133 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 6 Packet Pg. 135 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 7 Packet Pg. 136 Item 13 MAJOR CITY GOALS HOUSING 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. 8 Packet Pg. 137 Item 13 MAJOR CITY GOALS 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. 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. 9 Packet Pg. 138 Item 13 MAJOR CITY GOALS CLIMATE ACTION 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. 10 Packet Pg. 139 Item 13 MAJOR CITY GOALS CLIMATE ACTION 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. 11 Packet Pg. 140 Item 13 MAJOR CITY GOALS CLIMATE ACTION 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 12 Packet Pg. 141 Item 13 MAJOR CITY GOALS CLIMATE ACTION 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 13 Packet Pg. 142 Item 13 MAJOR CITY GOALS CLIMATE ACTION 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 14 Packet Pg. 143 Item 13 MAJOR CITY GOALS CLIMATE ACTION 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. 15 Packet Pg. 144 Item 13 MAJOR CITY GOALS 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. 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 16 Packet Pg. 145 Item 13 MAJOR CITY GOALS SUSTAINABLE TRANSPORTATION 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 17 Packet Pg. 146 Item 13 MAJOR CITY GOALS SUSTAINABLE TRANSPORTATION 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 18 Packet Pg. 147 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 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 19 Packet Pg. 148 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 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 20 Packet Pg. 149 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 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) Packet Pg. 259 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) Packet Pg. 260 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) Packet Pg. 261 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) Packet Pg. 262 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) Packet Pg. 263 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) Packet Pg. 264 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 Packet Pg. 266 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 17 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% $4,607,920 100% Agenda Package Page 112 27 28 4/16/2019 Item 13 ‐ Staff Presentation 15 29 Policy Changes and Additions Insurance Benefit Fund •Name change to Insurance Fund •Moving all insurance related expenditures to the  fund Essential Safety Equipment Balance and Reserves policies add: K. The City will carry forward year‐end project balance  designated for essential safety equipment indefinitely.  Agenda Package Page 104 30 Building Permit Plan Check Services User Fee Cost Recovery Goals add: H. The City of San Luis Obispo offers building permit plan check services through consultants at a set price, not to exceed 65% of the City’s fee for the service. Building Permit Plan Check services are offered by the City on a 100% cost‐recovery basis, and the service is provided after the fee is paid in full. As a result, the Finance Director is authorized to make appropriations from the related revenue account to cover the cost of the services provided. Policy Changes and Additions Agenda Package Page 105 29 30 4/16/2019 Item 13 ‐ Staff Presentation 16 Five‐Year Fiscal Outlook Revenue Projected       FY 20 Projected       FY 21 Projected  FY 22 Projected  FY 23 Projected  FY 24 Total Tax & Franchise Revenue 62,856$        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 35 36 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 39 40 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 41 42 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 43 44 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 45 46 4/16/2019 Item 13 ‐ Staff Presentation 24 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. 47