HomeMy WebLinkAboutCC 2025-05-13_11b Organizational Assessment
Item 11.b.
MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Director of Public Works
Ashley Garcia, Human Resources Officer
BY: Aleah Bergam, Management Analyst
SUBJECT: Operational and Organizational Assessment
DATE: May 13, 2025
RECOMMENDATION:
1) Receive the Report and Recommendations in the Operational and Organizational
Assessment; and
2) Direct staff to move forward with incorporating specific priority recommendations as
Service Level Requests into the FY 2025-27 Biennial Budget.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The fiscal impact in Table 1 below anticipates funding the Economic Development
Coordinator on October 1, 2025, and the Assistant City Manager on January 1, 2027. For
recommendation 12, staff has identified a software platform that can help automate and
organize Public Records Requests and is requesting funding for that software as part of
the budget process.
Several recommendations in the report do not have a fiscal impact or are already funded
and are listed in Table 1 below with no dollar amount listed in the fiscal impact columns.
These recommendations are operational and do not need additional resources to
accomplish. Examples of these recommendations include formalizing the Planning
Manager supervisory responsibilities to reduce the Director’s span of control, re titling the
Executive Secretary in Human Resources to Human Resources Specialist and
establishing a framework to evaluate special events programming. The report
recommended incorporating modernization efforts to streamline and reduce paper-based
processes, replace software, and leverage the upcoming IT Master Plan to determine
needs. Streamlining processes and leveraging existing technology does not have an
immediate fiscal impact. Recommendation 5, Continue modernization efforts to
streamline and reduce paper-based processes, is already in progress with the Utility
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May 13, 2025
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Billing/Payroll software implementation of Tyler Technologies’ Munis. The funding for the
implementation of Tyler Technologies’ Munis is already in the CIP Program Budget.
Some of the recommendations listed below include a possible revenue increase or a
budget decrease and savings to the General Fund. Collecting review fees at the time of
application is anticipated to lead to a revenue increase, due to the change in when
payments are received. Plan review fees are based on customer need , and exact
estimates are hard to calculate without historical data. The revenue estimates have not
yet been adjusted but will be reviewed when this change is made. In addition, for
Recommendation 16, one of the restructuring changes in the Engineering Division
includes reclassifying the Assistant Project Manager to an Engineering Technician, which
is an estimated budget decrease in both FY 2025-26 and FY 2026-27. Staff anticipates
reclassifying the Engineering Inspector to Assistant Engineer, which has no fiscal impact.
For Recommendation 18, the transition of TBID to the newly established Economic
Development Program would decrease the General Fund Budget as this transition would
fund 50% of the position with TBID funds.
The total fiscal impact of all the requested recommendations to implement in the FY 2025-
27 Budget is an on-going net savings to the general fund.
The remaining recommendations will be considered in the development of future budgets,
as resources and Council Goals change.
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Item 11.b.
City Council
Operational and Organizational Assessment
May 13, 2025
Page 3
Table 1: Estimated Fiscal Impact of Specific Priority Recommendations
BACKGROUND:
In the FY 2023-25 City Council Goals workplan, specifically under the “Funding” goal, the
Council directed to Evaluate and Obtain Economic Development management services.
In reviewing peer agencies and their specific models for Economic Development
management services, staff concluded the need for a focused organizational assessment
in order to determine how Economic Development management services should be
Number Recommendation FY 2025-26 FY 2026-27
1 Add one Assistant City Manager (1.0 FTE) to
the organization. $ - $ 135,900
3 Establish a proactive Economic Development
Program. - -
4
Create an Economic Development
Coordinator to support the Economic
Development Program.
82,875 114,400
5 Continue modernization efforts to streamline
and reduce paper-based processes - -
6
Formalize Planning Manager supervisory
responsibilities to reduce the Director’s span
of control.
- -
9 Collect plan review fees at the time of
application. - -
11
Retitle the part-time Executive Secretary
position in HR to Human Resources
Specialist.
- -
12
Develop a plan to automate the public records
requests by leveraging existing software to the
greatest extent possible.
12,000 12,000
16 Restructure engineering resources to align
with Council infrastructure goals. (32,200) (33,300)
18
Transition the Tourism Business Improvement
District (TBID) responsibilities to the
Economic Development Program.
(83,938) (99,700)
19 Establish a framework to evaluate special
events programming. - -
$ (21,263) $ 129,300
General Fund Impact
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Operational and Organizational Assessment
May 13, 2025
Page 4
incorporated into the City structure and to evaluate the structure, staffing, supervision,
succession planning, and operational efficiency of all City departments with the exception
of Police and Public Works operations.
On October 3, 2024, the City issued a request for proposals (RFP) for an Operational and
Organizational Assessment. In November 2024, after reviewing 9 proposals, the City
selected Raftelis to conduct the operational and organizational assessment and executed
a contract with Raftelis in December 2024.
The work program consisted of four phases below:
1. Project Kick-Off
2. Complete Staff Interviews and Onsite Work
3. Conduct Organizational and Operations Assessment
4. Prepare Deliverables
The process began in January 2025, with a kick-off meeting with the City’s designated
project team to review the details and expectations of this assessment. Next, Raftelis
completed a site visit to engage with City staff the week of January 6, 2025. The project
team met with 28 staff members from several City departments, including the City
Manager’s Office, Community Development, Administrative Services, Legislative and
Information Services, Recreation Services, and Public Works. The employee interviews
gave the consultant team a better understanding of how work is performed and the
specific challenges and opportunities related to staff capacity, organizational structure,
workload management, and work planning. Additionally, the consultant team reviewed
and analyzed data provided by the City, including but not limited to staffing and budget
histories, available planning documents, and other documentation that details the
operations and service-delivery approach. When appropriate, the information was
compared to best practices guidelines from industry organizations and agencies. It was
also compared to comparable cities on the Central Coast, chosen based on city size,
organizational structure, and demographic profiles. These peer cities include:
City of Atascadero
City of Grover Beach
City of Morro Bay
City of Pismo Beach
ANALYSIS OF ISSUES:
Operational and Organizational Assessment Overview
The City partnered with Raftelis to conduct an operational and organizational assessment
to help identify opportunities to meet City Council goals through organizational
effectiveness and efficiency. City staff work diligently to meet the service level
expectations of the community; however, as the community’s preferences and needs
continue to grow and evolve, staff wanted to assess whether the current structure and
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May 13, 2025
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staffing composition best support community needs. Moreover, staff wanted to identify
opportunities to streamline or modernize longstanding processes through technology or
improved functional alignment that enhances service delivery and optimizes staff skills
and abilities.
The attached assessment (Attachment 1), prepared by Raftelis, includes a review of all
City departments except Police and Public Works operations. The report includes
evaluated opportunities for revenue growth through economic development efforts. Within
the scope of departments included in the study, Raftelis engaged nearly every staff
member through interviews and focus groups. The discussion focused on their roles and
responsibilities, workload drivers, service level expectations, and opportunities for
improvement. The work was augmented by data and benchmarking analysis, industry
best practices, and the consultant team’s experience working in and for local
governments nationwide and in California.
During the assessment, the consultants identified that the workload drivers and service
level expectations continue to outpace resource capacity, especially as it relates to
staffing. For an organization where staffing levels have only grown modestly over the past
several years (once adjusted for Recreation Services program changes), the staffing and
structural recommendations in the report recognize the need for strong collaboration
across key functions to achieve City Council goals. Some examples include capital
planning and delivery, infrastructure maintenance and program delivery, and customer
service responsiveness.
Recommendations for new positions were carefully considered against the City’s financial
backdrop while also identifying where full-time resources will be needed in the future and
providing space for prioritization and implementation of such recommendations. Guiding
principles for new positions included appreciation for whether the workload justified a full-
time resource to meet current and future demand and the City’s desire to have various
positions functioning at their highest and best use. Key processes were also explored as
part of identifying core services across the various departments. Operational efficiency
recommendations highlight opportunities to enhance staff’s productivity through
modernization efforts that improve transparency, responsiveness, and workflow. Once
implemented, these recommendations support more effective processes that augment
technology and reduce the amount of time staff spend completing various tasks.
Table 2 highlights the recommendations detailed in this report. Within each department,
recommendations were grouped first by structure and staffing changes, then by
opportunities to enhance operational efficiency. The recommendations are not in priority
order.
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May 13, 2025
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Table 2: Summary of Report Recommendations
Priority Recommendations Staff Recommends Incorporating into the FY 2025 -27
Budget
Staff is requesting direction from Council on incorporating specific priority
recommendations into the FY 2025-27 Biennial Budget. Staff is aware of budgetary and
time constraints and has prioritized specific recommendations to implement in the short-
term and to allocate funding and time in the next biennial budget. The priority
recommendations are:
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Raftelis Recommendation 4: Create an Economic Development Coordinator to
support the Economic Development Program.
o Hiring an Economic Development Coordinator is in direct support of the FY
2025-27 Council Goal of “Pursue New Revenue Sources”. An Economic
Development Coordinator executes strategy to attract, retain and expand
business within the City.
o Staff proposes funding this position on October 1, 2025.
Raftelis Recommendation 3: Establish a proactive Economic Development
Program
o Developing a proactive Economic Development Program is in direct support
of the FY 2025-27 Council Goal of “Pursue New Revenue Sources”. An
economic development program supports future revenue growth through
supporting commercial development which in return will promote and
enhance the City’s overall tax base. There is a minor fiscal impact to
establishing a proactive Economic Development Program.
Raftelis Recommendation 1: Add one Assistant City Manager (1.0 FTE) to the
organization.
o The City’s organizational structure currently relies on the City Manager to
oversee staff within the City Manager’s Office, each department head and
contracted or supporting agencies (e.g., City Attorney, FCFA). The result of
this large span of control inevitably leads to the City Manager being heavily
involved in day-to-day operations and management of all City departments,
leaving limited time available for community engagement and pursuing
strategic City priorities. A separate and distinct, full-time Assistant City
Manager is recommended to divide functional oversight responsibilities and
provide additional capacity. This kind of personnel investment is significant
given the City’s financial context overall and is common among other
benchmarking communities. This additional executive-level position allows
leadership to be more responsive to the day-to-day needs of the
organization as well as the Council's and community's long-term goals.
o Staff proposes funding this position on January 1, 2027.
Raftelis Recommendation 5: Continue modernization efforts to streamline and
reduce paper-based processes.
o The City is already in progress with the Utility Billing/Payroll software
implementation of Tyler Technologies’ Munis. The funding for the
implementation of Tyler Technologies’ Munis is already in the CIP Program
Budget, but there is still an opportunity to utilize current technology to
streamline processes and reduce paper-based processes.
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May 13, 2025
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Recommendation 6: Formalize Planning Manager super visory responsibilities to
reduce the Director’s span of control.
o There is no fiscal impact to formalizing the Planning Manager supervisory
responsibilities to reduce the Director’s span of control, but implementing
this change will allow the Director to serve a more elevated role in the
various strategic priorities of the City. Per the report from Raftelis, it is a best
practice to assign supervisory responsibility to the Planning Manager for the
day-to-day operations of the Planning Division. The Associate Planner,
Assistant Planner, and Permit Technician will report directly to the Planning
Manager. In many local government community development departments,
operational supervision is assigned to a Planning Manager, a Building
Official, and, at times, a Code Enforcement Officer who reports to the
Director. These positions provide daily oversight and accountability for the
performance of the functional areas. Formalizing the Planning Manager’s
oversight of the Planning Division staff creates structural alignment within
the department, resulting in one direct report to the Director for each core
function.
Recommendation 9: Collect plan review fees at the time of application.
o Currently, no fees are collected for plan review at submittal; they are instead
collected when the permit is issued. It is best practice to determine and
collect fees at the time of application submittal to ensure optimal cost
recovery for staff time spent reviewing a project. Revenue collection also
suffers if the application is not approved or if the applicant decides not to
seek a building permit for some reason.
o The City will see a revenue increase in FY 2025-26 due to the change in
when payments are received. Plan review fees are based on customer need
and exact estimates are hard to calculate without historical data. The
revenue estimates have not yet been adjusted but will be reviewed when
this change is made.
Recommendation 11: Retitle the part-time Executive Secretary position in HR to
Human Resources Specialist.
o There is no fiscal impact in retitling the part-time Executive Secretary
position in HR to Human Resources Specialist.
Recommendation 12: Develop a plan to automate the public records requests by
leveraging existing software to the greatest extent possible.
o Staff is requesting funding for a software platform that can help automate
and organize Public Records Requests, which will save staff time and free
resources for other work. It will also reduce manual effort, ensure timely
responses, and minimize non-compliance risk.
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May 13, 2025
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Recommendation 16: Restructure engineering resources to align with Council
infrastructure goals.
o The current Assistant Projects Manager position is vacant, which creates
an opportunity to restructure this position to an Engineering Technician and
provide dedicated capacity for full-time design and inspections of capital
projects. This allows other engineers within the division to focus on design
review and contract management to expedite implementation. In turn, this
relieves the City Engineer from project management and allows for more
department and staffing management to ensure effective operations and
accountability for service delivery. In addition, this position will relieve the
City Engineer and senior engineers from day-to-day field work and allow
them to focus more on strategic implementation of the capital projects plan.
It also offers a career path for entry-level staff to join the division and look
forward to promotional opportunities. Based on Raftelis’ experience in the
engineering industry recruitment field, it is quite difficult to hire qualified
senior-level engineers, and an entry-level offers a startup opportunity and
exposure to working with and learning from experienced staff within the
division.
o Reclassifying the Engineering Inspector to Assistant Engineer has no fiscal
impact and reclassifying the Assistant Project Manager to an Engineering
Technician, is estimated to be a budget decrease in FY 2025-26 and FY
2026-27.
Recommendation 18: Transition the Tourism Business Improvement District
(TBID) responsibilities to the Economic Development Program.
o This recommendation impacts the staffing composition and core services
for the Recreation Services Department. The proposed reclassification of
the part-time Recreation Specialist position reduces overall staffing levels;
however, as part of workload assessment and review, this position spent
nearly all its time on TBID-related activities. In addition, TBID’s
responsibilities also fell to the Director. Removing this p rogram from
Recreation Services should ultimately provide enhanced capacity for the
Director to provide strategic oversight for the department’s two core
functions: recreation programming and special events.
o Staff recommends funding 50% of this position with TBID funds.
Recommendation 19: Establish a framework to evaluate special events
programming
o Interviews indicated that there is limited bandwidth in Recreation for
strategic priorities, such as strengthening sponsorship solicitation materials,
and the risk of staff burnout or diminished service delivery if the events
calendar becomes overprogrammed. To ensure the most efficient use of
limited staff resources, the City will develop guidelines and a framework to
evaluate special events each year, which could include identifying relevant
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metrics for event types, such as learning opportunities or cost recovery.
Based upon the developed framework, Recreation Services staff can focus
upon a limited number of well-planned events and reserve some staff
capacity for other important tasks.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Receive and file the operational and organizational assessment completed by
Raftelis and direct staff to incorporate priority recommendations 1, 3, 4, 5, 6, 9, 11,
12, 16, 18, and 19 into the FY 2025-27 Biennial Budget;
2. Direct staff to incorporate alternative recommendations or only certain priority
recommendations into the FY 2025-27 Biennial Budget; or
3. Provide other direction to staff.
ADVANTAGES:
Incorporating priority recommendations from the Operational and Organizational
Assessment will increase overall City operational efficiency and staff responsiveness to
the community. Allocating the funding to implement priority recommendations will
increase organizational efficiency and improve operations and elevate the City to be in
line with peer agencies and their corresponding staffing levels.
DISADVANTAGES:
Staff has not identified any disadvantages of receiving and filing the operational and
organizational assessment and authorizing staff to incorporate select recommendations
into FY 2025-27 Biennial Budget.
ENVIRONMENTAL REVIEW:
Receiving and filing the Organizational Assessment and authorizing staff to incorporate
select recommendations into the FY 2025-27 Budget is not a project subject to the
California Environmental Quality Act (“CEQA”) because it has no potential to result in
either a direct, or reasonably foreseea ble indirect, physical change in the environment.
(State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378.) Alternatively, receiving and
filing the Organizational Assessment and authorizing staff to incorporate select
recommendations into the FY 2025-27 Budget is exempt from CEQA on the basis that it
can be seen with certainty that there is no possibility that the activity in question may have
a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).)
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Operational and Organizational Assessment
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CITY OF
Arroyo
Grande
Operational and Organizational Assessment
Project Report / May 2025
ATTACHMENT 1
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CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT
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19 Garfield Place, Suite 500 Cincinnati, OH 452 02
www.raftelis.com
May 2, 2025
Matthew Downing
City Manager
City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
Subject: Operational and Organizational Assessment Report
Dear Mr. Downing:
Raftelis is pleased to provide you with this Operational and Organizational Assessment Report for the City of Arroyo
Grande (City). This assessment sought to align organizational structure and staffing with City goals and service
levels, review opportunities for operational efficiency, and evaluate options to enhance the City’s approach to
economic development. With the exception of Police and Public Works operations, this report summarizes our
analysis of Citywide and departmental staffing and service levels that led to recommendations on resourcing,
structure, and opportunities to enhance operational effectiveness. The recommendations were informed by our work
with local governments across the country, industry best practices, workload data provided by the City, and peer
benchmarking analysis.
The City of Arroyo Grande is fortunate to have dedicated, talented, and experienced employees . Employees are
proud of the work they do to support the community. The recommendations included in this report will enable the
City to build on existing strengths, improve efficiency and effectiveness, and continue the City’s reputation for
excellence.
Thank you for the opportunity to partner with the City in this important effort.
Sincerely,
Jonathan Ingram
Vice President - Organizational Assessment
P: 513.221.0500 / E: jingram@raftelis.com
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CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT
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CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT
Table of Contents
EXECUTIVE SUMMARY ........................................................................ 1
INTRODUCTION ..................................................................................... 3
BACKGROUND AND METHODOLOGY .......................................................... 3
ABOUT THE CITY OF ARROYO GRANDE ..................................................... 4
Broad Areas of Focus ......................................................................................................4
Structure ...........................................................................................................................4
Staffing..............................................................................................................................5
Budget...............................................................................................................................6
BENCHMARKING SUMMARY......................................................................... 6
Citywide Staffing ..............................................................................................................7
ANALYSIS AND RECOMMENDATIONS............................................... 8
CITYWIDE ........................................................................................................ 8
Structure and Staffing Recommendations ....................................................................9
Operational Efficiency Recommendations .................................................................. 15
COMMUNITY DEVELOPMENT ...................................................................... 16
Core Service Matrix ....................................................................................................... 17
Staffing Level History .................................................................................................... 18
Structure and Staffing Recommendations .................................................................. 18
Operational Efficiency Recommendations .................................................................. 20
CITY MANAGER’S OFFICE ........................................................................... 21
Core Service Matrix ....................................................................................................... 22
Staffing Level History .................................................................................................... 22
Structure and Staffing Recommendations .................................................................. 23
LEGISLATIVE AND INFORMATION SERVICES ........................................... 26
Core Service Matrix ....................................................................................................... 26
Staffing Level History .................................................................................................... 26
Structure and Staffing Recommendation Impact ........................................................ 27
Operational Efficiency Recommendations .................................................................. 27
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CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT
ADMINISTRATIVE SERVICES ...................................................................... 29
Core Service Matrix ....................................................................................................... 29
Staffing Level History .................................................................................................... 30
Structure and Staffing Recommendations .................................................................. 30
PUBLIC WORKS ............................................................................................ 34
Core Service Matrix ....................................................................................................... 34
Staffing Level History .................................................................................................... 35
Structure and Staffing Recommendations .................................................................. 36
Operational Efficiency Recommendations .................................................................. 38
RECREATION SERVICES ............................................................................. 42
Core Service Matrix ....................................................................................................... 43
Staffing Level History .................................................................................................... 43
Structure and Staffing Recommendations .................................................................. 44
Operational Efficiency Recommendations .................................................................. 45
CONCLUSION ...................................................................................... 48
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CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT
List of Tables
Table 1: Summary of Report Recommendations .....................................................................2
Table 2: Authorized Staffing Level by Department, FY2021-FY25 ..........................................5
Table 3: General Fund Expenditures by Category, FY2021–FY25 ..........................................6
Table 4: Benchmark Communities ............................................................................................6
Table 5: Benchmarking Analysis of Authorized FTEs by Function ........................................7
Table 6: Peer Comparison – Deputy/Assistant City Manager Positions ................................9
Table 7: Community Development Department Core Service Matrix ................................... 17
Table 8: Community Development Department Staffing History.......................................... 18
Table 9: City Manager’s Office Core Service Matrix .............................................................. 22
Table 10: City Manager’s Office Staffing History ................................................................... 22
Table 11: Administrative Support Benchmarking Analysis .................................................. 24
Table 12: Legislative and Information Services Core Service Matrix ................................... 26
Table 13: Legislative and Information Systems Department Staffing History .................... 27
Table 14: Administrative Services Core Service Matrix ........................................................ 29
Table 15: Administrative Services Department Staffing History .......................................... 30
Table 16: Public Works Department Core Service Matrix ..................................................... 34
Table 17: Public Works Department Staffing History ............................................................ 35
Table 18: Recreation Services Department Core Service Matrix .......................................... 43
Table 19: Recreation Services Department Staffing History ................................................ 43
Table 20: Summary of Recommended Staffing Increases .................................................... 48
List of Figures
Figure 1: City of Arroyo Grande Functional Organizational Chart, FY 2024-25 ....................5
Figure 2: Recommended Executive Leadership Oversight .................................................. 11
Figure 3: Community Development Organizational Structure, FY2024-25 .......................... 17
Figure 4: Proposed Community Development Department Organizational Structure ....... 20
Figure 5: City Manager’s Office Organizational Structure, FY2024-25 ................................. 22
Figure 6: City Hall Administrative Support Positions and Functions .................................. 23
Figure 7: Proposed City Manager’s Office Organizational Structure ................................... 25
Figure 8: Legislative and Information Services Organizational Structure, FY2024 -25 ....... 26
Figure 9: Public Records Request Volume, FY2019–FY2024 ............................................... 28
Figure 10: Administrative Services Organizational Structure, FY2024 -25 ........................... 29
Figure 11: Information Technology Service Tickets by Month in 2024 ................................ 32
Figure 12: Proposed Administrative Services Department Organizational Structure ........ 33
Figure 13: Public Works Organizational Structure, FY2024-25............................................. 34
Figure 14: Proposed Public Works Organizational Structure, Administrative and
Engineering ............................................................................................................................... 38
Figure 15: Risk/Consequence Matrix ...................................................................................... 40
Figure 16: Recreation Services Organizational Structure, FY2024-25 ................................. 42
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CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT
Figure 17: Proposed Recreation Services Department Organizational Structure .............. 45
Figure 18: Cost Recovery Pyramid ......................................................................................... 46
Figure 19: Proposed Citywide Organizational Chart ............................................................. 49
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 1
Executive Summary
Nestled in California’s central coast region, the City of Arroyo Grande is a growing community that recognizes its
agricultural roots, iconic downtown village, and history of meeting community needs through thoughtful investment
and financial management. The City Council has set ambitious goals that build on the organization's strengths
through continued infrastructure investment, economic development and vitality, and overall quality of life for those
living and visiting the community.
Raftelis partnered with the City to conduct an operational and organizational assessment to help inform
opportunities to meet City Council goals through organizational effectiveness. Dedicated City staff work diligently
to meet the service level expectations of the community; however, as the community’s preferences and overall
footprint continue to grow and evolve, it is important to assess whether the current structure and staffing composition
best support community needs. Moreover, there may be opportunities to streamline or modernize longstanding
processes through technology or improved functional alignment that enhances service delivery and optimizes staff
skills and abilities.
This assessment included a review of all City departments except Police and Public Works operations. It also
evaluated opportunities for revenue growth through economic development efforts. It was rooted in an appreciation
for the organizational context. Within the scope of departments included in the study, Raftelis engaged nearly every
staff member through interviews and focus groups. The discussion focused on their roles and responsibilities,
workload drivers, service level expectations, and opportunities for improvement. This work was augmented by data
and benchmarking analysis, industry best practices, and the Raftelis team’s experience working in and for local
governments nationwide and in California.
It became clear during the assessment and analysis phase of the project that the workload drivers and service level
expectations continue to outpace resource capacity, especially as it relates to staffing. For an organization where
staffing levels have only grown modestly over the past several years (once adjusted for Recreation Services program
changes), it is impressive that staff continue to deliver high-quality services to the community. This is driven by the
need to flex and adapt to changing circumstances and collaborate regularly across departments and functions. The
staffing and structural recommendations in the report recognize the need for strong collaboration across key functions
to achieve City Council goals. Some examples include capital planning and delivery, infrastructure maintenance and
program delivery, and customer service responsiveness.
Recommendations for new positions were carefully considered against the City’s financial backdrop while also
identifying where full-time resources will be needed in the future and providing space for prioritization and
implementation of such recommendations. Guiding principles for new positions included appreciation for whether
the workload justified a full-time resource to meet current and future demand and the City’s desire to have various
positions functioning at their highest and best use. Key processes were also explored as part of identifying core
services across the various departments. Operational efficiency recommendations highlight opportunities to enhance
staff’s productivity through modernization efforts that improve transparency, responsiveness, and workflow . Once
implemented, these recommendations support more effective processes that augment technology and reduce the
amount of time staff spend completing various tasks.
The following table highlights the recommendations detailed in this report. Within each department,
recommendations were grouped first by structure and staffing changes, then by opportunities to enhance operational
efficiency. The recommendations are not in priority order. Prioritization should be determined based on
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2 CITY OF ARROYO GRANDE
implementation planning with City leadership and include factors like resource considerations, staffing level changes,
and strategic goals and priorities.
Table 1: Summary of Report Recommendations
Number Recommendations
Citywide
1 Add one Assistant City Manager (1.0 FTE) to the organization.
2 Divide functional responsibilities between the City Manager and the Assistant City Manager to provide
additional capacity and strategic oversight.
3 Establish a proactive Economic Development Program.
4 Create an Economic Development Coordinator to support the Economic Development Program .
5 Continue modernization efforts to streamline and reduce paper-based processes.
Community Development
6 Formalize Planning Manager supervisory responsibilities to reduce the Director’s span of control.
7 Increase the Community Development Department Office Assistant position from part-time to full-time.
8 Replace Adobe® for plan review with Bluebeam®.
9 Collect plan review fees at the time of application.
City Manager’s Office
10 Add one full-time Executive Secretary position responsible for central reception and administrative
support in City Hall.
11 Increase the part-time Executive Secretary position in HR to full-time and retitle to Human Resources
Specialist.
Legislative and Information Services
12 Develop a plan to automate the public records requests by leveraging existing software to the greatest
extent possible.
Administrative Services
13 Add one Senior Accounting Clerk to the Finance Department.
14 Leverage the upcoming IT Master Plan to determine staffing levels.
Public Works
15 As part of succession planning, remove the Assistant City Manager responsibility from the Director
position and officially designate the City Engineer as the Department Assistant Director.
16 Restructure engineering resources to align with Council infrastructure goals .
17 Develop a formalized Asset Management Program.
Recreation Services
18 Transition the Tourism Business Improvement District (TBID) responsibilities to the Economic
Development Program.
19 Establish a framework to evaluate special events programming .
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 3
Introduction
Background and Methodology
The City of Arroyo Grande, California, engaged Raftelis in late 2024 to perform an operational and organizational
assessment of the following City departments:
• Community Development
• City Manager’s Office (CMO), including Human Resources (HR)
• Legislative and Information Services
• Administrative Services - Finance and Information Technology (IT)
• Public Works (Administration and Engineering)
• Recreation Services
This engagement aimed at assessing the organizational structure and staffing levels within each department to
understand how they were resourced for service delivery and alignment with City Council goals. The assessment
also considered options to enhance economic development in a way that contributed to the financial sustainability
of the City to continue providing high-quality service delivery for the community. Police and Public Works
operations were excluded from the scope of the study. Collectively , these two departments represent approximately
60% of the City’s workforce. Moreover, the Five Cities Fire Authority (FCFA) was excluded from the City staffing
analysis; however, Raftelis was able to gather an understanding of how administrative management responsibilities
impact workload for City staff.
The process began with a kick-off meeting with the City’s designated project team to review the details and
expectations of this assessment. Next, Raftelis completed a site visit to engage with City staff. The project team met
with 28 staff members from several City departments, including the CMO, Community Development,
Administrative Services, Legislative and Information Services, Recreation Services, and Public Works. The
employee interviews gave the project team a better understanding of how work is performed and the specific
challenges and opportunities related to staff capacity, organizational structure, workload management, and work
planning. Additionally, the project team reviewed and analyzed data provided by the City, including but not limited
to staffing and budget histories, available planning documents, and other documentation that details the operations
and service-delivery approach.
When appropriate, this information was compared to best practice s guidelines from industry organizations and
agencies. It was also compared to comparable cities in the Central Coast Region of California chosen based on city
size, organizational structure, and demographic profiles. These peer cities include:
• City of Atascadero
• City of Grover Beach
• City of Morro Bay
• City of Pismo Beach
The interviews, data, document analysis, best practices guidance, and benchmarking analysis informed the
recommendations included in this report.
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4 CITY OF ARROYO GRANDE
About the City of Arroyo Grande
The City of Arroyo Grande is in California’s central coast region, approximately two miles inland from the coastline
in San Luis Obispo County, sharing borders with the cities of Pismo Beach and Grover Beach and the unincorporated
community of Oceano.1 Incorporated in 1911, the City has a rich agricultural history. Today, it recognizes its deep
agricultural roots while supporting a variety of residential and commercial land uses.1 According to the most recent
Census Data, the City spans 5.94 square miles and serves a population of approximately 18,412.2
The City’s mission is to be the best place possible for everyone who lives, works, and visits. It strives to achieve this
mission by providing efficient and responsive government services.3
BROAD AREAS OF FOCUS
During project initiation, Raftelis discussed with the City key areas of focus that were driving the operational and
organizational assessment. The following areas were identified:
• Infrastructure and Resiliency
• Economic Development and Vitality
• Organizational Effectiveness
• Quality of Life
Moreover, as the study was beginning, City Council was also in the process of updating their goals, which include:
• Complete the General Plan Update
• Redevelop the East Grand Avenue Corridor (Halcyon Road to Elm Street)
• Pursue New Revenue Sources
• Implement Road and Sidewalk Improvements
• Achieve Water Resilience
These focus areas and goals helped guide and inform the study and evaluation of organizational structure and staffing
resources. Infrastructure remains the City’s top priority. With the recent passage of Measure E -24, the City will
generate additional sales tax revenue to support infrastructure improvements and critical City services. Transparency
and visibility of these improvements are paramount for the organization, beginning with the Pavement Management
Plan. The City is also updating its General Plan. This comprehensive document includes public engagement and
input that will set the strategy for future development in a way that aligns with the community’s vision for the future.
Organizational structure and resource allocation are central to the City’s ability to deliver on these goals. Historically,
the City has provided high-quality services with the fewest resources possible. The evolving landscape for local
government workforce, capital, and technology planning necessitates a fresh look at how the City is currently
deploying resources and prioritizing how additional resources should be allocated.
STRUCTURE
The figure below reflects the Citywide organizational structure with high-level functions outlined beneath each
department, office, or agency.
1 City of Arroyo Grande General Plan Update, Existing Conditions , and Trends Workbook Final Draft, February 2024.
2 2023 American Community Survey, United States Census Bureau.
3 “Departments/Divisions,” City of Arroyo Grande website.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 5
City Manager
2.0 FTE
Legislative & Info
Services
2.6 FTE
Public Works
30.8 FTE
• Council Administration
• Public Records Requests
• Records Management
• Communications
• Event Management Support
• Streets
• Utilities
• Engineering and Capital
• Park Maintenance
• City Facilities Maintenance
• Fleet
• Policy Administration
• City Management
• Strategic Oversight
Administrative
Services
7.0 FTE
• Accounts Receivable
• Accounts Payable
• Payroll
• Utility Billing
• Financial Reporting and
Budget Development
• Network Security
• Application and
Customer Support
Human Resources
1.5 FTE
• Recruitment
• Personnel
Management
• Employee
Relations
• Labor Relations
• Compliance
Community
Development
7.5 FTE
• Building
• Planning
• Code Enforcement
• Housing Grants
Management
Police
31.5 FTE
• Patrol
• Investigations
• Neighborhood Services
• School Resource Officer
• Records / Property and
Evidence
Recreation
Services
5.9 FTE
• Special Events
• Recreation programming
• Tourism Business
Improvement District
Five Cities Fire
Authority
29.5 FTE
• Joint Powers Authority with
Grover Beach
• Personnel and Financial
Services provided by City of
Arroyo Grande
City Attorney
(Contracted)
1.0 FTE
• Legal Counsel
• Contract Review
Figure 1: City of Arroyo Grande Functional Organizational Chart, FY 2024-25
STAFFING
According to the FY2024-25 Budget, the City of Arroyo Grande's authorized staffing is 93.8 full-time equivalent
(FTE) employees. During the FY2024-25 mid-cycle update budget adoption in June 2024, some additional staff have
been added, including a part-time (0.5 FTE) Executive Secretary for HR and a part-time (0.5 FTE) Recreation
Specialist. The total budgeted staffing has decreased by 8.7% since FY2020-21. This staffing decrease can be primarily
attributed to the transition of the Recreation Preschool and Children in Motion programs in the Recreation
Department in FY2023-24 to the YMCA. The remaining department staffing changes have resulted from inter-
departmental transfers, including IT transferring from Legislative and Information Services to Administrative
Services and Engineering transferring from Community Development to Public Works. The City has also modified
a few strategic positions over the past five years, including adding a Management Analyst, Assistant Capital Projects
Manager, and reclassifying a position to fill the Planning Manager position.
Table 2: Authorized Staffing Level by Department, FY2021-FY25
Department FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget
%
Change
Elected Officials 5.0 5.0 5.0 5.0 5.0 0.0%
City Manager’s Office4 2.0 3.0 4.0 4.0 4.0 100.0%
Legislative and Information Services Department 4.6 2.6 2.6 2.6 2.6 -43.5%
Administrative Services Department 6.0 7.0 7.0 7.0 7.0 16.7%
Community Development Department 10.5 11.5 10.5 7.5 7.5 -28.6%
Police Department 33.4 33.4 31.5 30.5 31.5 -5.7%
Recreation Services Department 15.0 15.0 15.0 5.4 5.4 -64.0%
Public Works Department 25.5 25.5 27.8 30.8 30.8 20.8%
Total 102.0 103.0 103.4 92.8 93.8 -8.0%
4 The City Manager’s Office includes the contracted City Attorney.
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6 CITY OF ARROYO GRANDE
In addition to these staff, the Five Cities Fire Authority serves the City through a Joint Powers Agreement and has
a total of 31.0 FTEs.
BUDGET
The City’s general fund budget supports most core services provided by City departments. The past five years of the
operating budget reflect the impact of the global pandemic followed by a period of growing inflationary pressure,
including wage growth. These factors contributed to an average annual expenditure growth of 8.1% that was required
to simply maintain the status quo. Large expenditure drivers include the City’s pension benefit contribution cost,
increasing salaries to maintain competitive wages in the labor market, and support for technology equipment and
capital investments. The following table shows the general fund budgets by category from FY2020-21 to FY2024-25.
Table 3: General Fund Expenditures by Category, FY2021–FY25
Department FY20-21
Actual
FY21-22
Actual
FY22-23
Actual
FY23-24
Budget
FY24-25
Budget
Salaries and Fringe Benefits $11,353,567 $10,850,612 $13,197,956 $12,089,400 $12,437,200
Services and Supplies $6,869,822 $6,454,835 $7,315,351 $9,434,771 $9,774,816
Debt Service $54,500 $128,493 $307,933 $309,566 $294,386
Transfers $38,450 $1,398,707 $656,288 $115,000 $2,475,000
Capital Outlay $457,504 $12,998 $241,459 $239,500 $149,500
Total $18,773,843 $18,845,645 $21,718,987 $22,188,237 $25,130,902
Benchmarking Summary
Benchmarking refers to collecting information from various sources and comparing this information to the local
operation to provide context for how other organizations operate and provide services to a community. To help
inform the recommendations in this report, the project team conducted peer benchmarking regarding operations
from four peer communities in the Central Coast Region of California, which were identified based on conversations
with City staff, city size, organizational structure, and demograph ic profiles.
While the benchmarking information provides a valuable comparison between how other cities are staffed and
operated compared to the City, it is important to acknowledge that each city has different attributes and faces different
challenges despite working in a similar operating environment. Furthermore, the limited availability of information
did not allow the project team to do a full, in-depth analysis of each peer community’s operations to understand the
intricacies of how each approaches the challenges currently faced by the City.
The following table shows the benchmark communities and their respective populations, the percentage change in
population since 2010, and each city’s total land area in square miles.
Table 4: Benchmark Communities
City Population5
(2023)
Population Change
Since 2010
Land Area
(Square Miles)
City of Arroyo Grande 18,412 6.7% 5.94
City of Atascadero 29,735 5.0% 26.07
City of Grover Beach 12,687 -3.6% 2.31
5 United States Census Bureau.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 7
City Population5
(2023)
Population Change
Since 2010
Land Area
(Square Miles)
City of Morro Bay 10,717 4.7% 5.33
City of Pismo Beach 8,024 4.8% 3.50
CITYWIDE STAFFING
To provide a baseline understanding of staffing by department, Raftelis compared total authorized staffing within
each department scoped for this study with the benchmark communities. The table below summarizes the staffing
analysis, which was considered alongside City workload data analysis, interview themes, and best practices guidance
for determining staffing recommendations. Each peer community has similar core functions, though they may be
distributed across different departments. All information was sourced from the peer agency’s most recently adopted
budget document. The project team made functional distribution assumptions based on industry knowledge of local
government workforce composition and service provisions. The analysis is meant to provide a data point to guide
recommendations and may not reflect actual practice within each of these communities. Where appropriate,
noteworthy differences are footnoted.
Table 5: Benchmarking Analysis of Authorized FTEs by Function
Function Arroyo
Grande
Peer
Average Atascadero Grover
Beach Morro Bay Pismo
Beach
City Manager's Office
(CMO) 2.00 2.10 3.00 2.00 1.20 2.20
Human Resources (HR) 1.50 1.25 1.00 1.00 2.00 1.00
City Clerk’s Office6 2.60 1.83 0.507 2.00 3.00 1.80
Finance 5.00 7.23 7.00 6.00 7.90 8.00
Information Technology 2.00 2.63 4.50 2.00 2.00 2.00
Community Development 9.508 8.96 12.00 5.25 9.60 9.00
Recreation 5.909 3.98 3.90 3.00 6.00 3.00
Total 28.50 27.96 31.90 21.25 31.70 27.00
Typically, internal service functions include the CMO, HR, City Clerk’s Office (called Legislative and Information
Services for the City), Finance, and IT. Operations functions typically include Community Development,
Recreation, and Public Works. Across the peer communities, the departments in which these functions are housed
vary; however, Arroyo Grande is the only City to have a separate Legislative and Information Services Department
and Director. Among the other cities, this function is usually part of the CMO. Similarly, among benchmarking
communities, special events and communications functions were also common within the CMO , whereas for the
City special events is part of Recreation Services and communications is primarily supported within Legislative and
Information Services.
6 Includes communications function
7 City Clerk responsibilities are assigned to the Deputy City Manager (CMO)
8 Includes two contracted positions for Chief Building Official and Building Inspector.
9 Includes special events
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8 CITY OF ARROYO GRANDE
Analysis and
Recommendations
As the project team grew to understand the City’s organizational context, the staff’s dedication to the community
was clear. The City is familiar with operating in a resource-constrained environment, and as a result, staff work
collaboratively to achieve success, often spilling across multiple functional areas. The recently hired City Manager,
with previous experience working for the City, has brought a sense of stability to the organization. Previously, there
were several years of leadership transition, in addition to a global pandemic, which led to hesitancy and ambiguity
among staff.
The City has already made key decisions that will position it well to deliver on Council goals. The recent modification
for an Assistant Capital Projects Manager and Planning Manager improves resource support for infrastructure and
economic development goals. Similarly, the City’s implementation of Tyler Munis Enterprise Resource Planning
(ERP) modernizes the core financial components of operations while providing a robust platform to integrate future
technology upgrades.
When developing recommendations, the project team first considered organizational structure, both Citywide and
by department. The desired outcome of this analysis was to present recommendations that best align service delivery,
policy goals, and adequate capacity to manage day-to-day operations and strategic priorities. As part of the structural
analysis, the project team assessed workload demand and the department’s ability to continue meeting service level
expectations. The recommendations for additional staff were informed by interviews, best practices, benchmarking
guidance, and, where available, workload data. Each potential staffing recommendation was considered by Raftelis
within the City’s financial context. The recommendations presented reflect where the City will need future resources
and capacity. City leadership should guide the phasing and prioritization of these recommendations, appreciating
the need to align additional resources with ongoing revenue growth that will support the investment over time.
The recommendations below begin Citywide and then by department, ordered by those departments prioritized in
the request for proposal (RFP). Within each department, are two sections; the first provides recommendations related
to structure and staffing, followed by recommendations to improve operational efficiency.
Citywide
The recommendations in this section affect multiple facets of City operations, including opportunities to enhance
executive staffing to reduce the City Manager’s span of control and create synergy and alignment between core
functions and strategic priorities. This section also discusses recommendations for a formal Economic Development
Program to support future revenue growth through commercial development and enhance the City’s overall tax base.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 9
STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 1: Add one Assistant City Manager (1.0 FTE) to the organization.
The City Council’s goals chart a long-term plan for the City's economic vitality. Achieving these goals requires the
capacity to develop and execute strategic priorities for the organization. The City Manager leads this effort,
appreciating that long-term strategy begins with revenue-generating opportunities that provide ongoing support for
meeting the service level expectations of the community. As such, the role of the City Manager includes overseeing
day-to-day operations and building external relationships with community partners, intergovernmental agencies, and
the City Council to advance the long-term vision for the City.
The City’s organizational structure currently relies on the City Manager performing oversight responsibilities within
the Office of the City Manager for each department head and contracted or supporting agencies (e.g., City Attorney,
FCFA). The result of this large span of control inevitably leads to the City Manager being heavily involved in day-
to-day operations and the management of all City departments, leaving limited time available for community
engagement and pursuing strategic City priorities. In practice, the short-term demands of day-to-day operations and
service delivery crowd out space for long-term goals. This capacity for long-term goals allows space to develop
economic growth opportunities that will ultimately grow revenues and help sustain service delivery well into the
future. The recent sales tax measure is a great example of how essential revenue growth is to simply maintain the
same level of service currently provided to the community.
A separate and distinct, full-time Assistant City Manager is recommended. This kind of personnel investment is
significant given the City’s financial context and overall size; however, as shown in the table below, it is common
among other benchmarking communities. This additional executive-level position allows leadership to be more
responsive to the day-to-day needs of the organization as well as the Council's and community's long-term goals.
Table 6: Peer Comparison – Deputy/Assistant City Manager Positions
Municipality Population
(2023)
FY25 General
Fund Assistant/Deputy City Manager FTEs
Arroyo Grande10 18,412 $26,369,634 1.0 Assistant City Manager / Public Works Director
Atascadero 29,735 $36,609,560 2.0 Deputy City Managers
Grover Beach 12,687 $18,480,020 1.0 Assistant City Manager
Morro Bay11 10,717 $20,584,958 None
Pismo Beach12 8,024 $31,029,411 1.0 Assistant City Manager / Management Services Director
Responsibility for department oversight should be split between the City Manager and Assistant City Manager. This
structure allows the CMO to be more responsive and connected to the work of their portfolio of departments and
how that work aligns with Council goals and resource prioritization. In addition, the two positions also increase the
capacity for strategic focus areas, including economic development, public outreach and communication, and
10 The City’s Assistant City Manager does not have formal supervisory responsibilities for other department heads, only in
their capacity as Director of Public Works.
11 In FY2025 an Assistant to the City Manager position was added, because the position does not have supervisory
responsibility it was excluded from the table.
12 The Management Services Department includes HR, Risk Management, Public Outreach, Legislative Affairs, and Public
Information functions. The Assistant City Manager has supervisory responsibilities for each of these functions (4.0 FTEs).
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10 CITY OF ARROYO GRANDE
building effective relationships with community partners. This also allows for a consistent and continuous leadership
structure when the City Manager is out of the office and unavailable.
The total estimated cost for this position, including benefits, is $262,600 per year based upon the need to add a
Director level position to separate the current Assistant City Manager position from Department Director.
Recommendation 2: Divide functional responsibilities between the City Manager and the
Assistant City Manager to provide additional capacity and strategic oversight.
The City has a longstanding history of delivering high-quality services to residents. As the Council and City
leadership plan for the future, they are focused on economic development and infrastructure goals that will continue
to support the City’s vitality and resilience. To deliver on the Council’s goals, executive leadership will need adequate
capacity to build strong relationships with the business community and plan for strategic infrastructure investments
that support community development goals. Under the current organizational structure, the City Manager’s large
span of control lends itself to focus more on day-to-day operational needs. While individual department directors are
focused on overseeing quality service delivery, they also need support from the City Manager, including
communication, understanding of resourcing and planning, and ensuring that the organization is focused on
delivering on Council policy priorities.
While the shared Assistant City Manager and Public Works Director provide additional support for communication
between Council and City leadership, the formal supervisory responsibilities still rest with the City Manager. As
recommended above, creating an Assistant City Manager position separate from the Public Works Director will
allow the City administration to functionally restructure in a way that supports better service delivery expectations
and creates capacity for advancing the Council’s goals. With an Assistant City Manager, supervisory responsibility
can be shared and grouped based on functional alignment. Oversight responsibilities can also complement the
executive leadership team's professional experience and skill set. The figure below shows the recommended Citywide
restructuring with the addition of an Assistant City Manager position.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 11
City Manager
Legislative and
Info Services
Director
Public Works
Director
Administrative
Services Director
Assistant City
Manager
1.0 FTE
Community
Development
Director
Police
Chief
Recreation
Services
Director
Five Cities Fire
Authority
City Attorney
(Contracted)
1.0 FTE
Human
Resources
Officer
Internal Services Operations Public Safety
Figure 2: Recommended Executive Leadership Oversight
As recommended, City departments would be grouped into three primary portfolios: Public Safety, Operations, and
Internal Services. The City Manager would maintain oversight responsibility for Police and FCFA, with the
remaining two portfolios split between the City Manager and Assistant City Manager. Portfolio assignments are
flexible and should be determined after the Assistant City Manager position is filled to provide an opportunity to
assess strengths and professional expertise. This recommended structure reduces the City Manager’s span of control
from nine direct reports (including FCFA) to seven, including the new Assistant City Manager. The Operations
portfolio represents front-facing departments like Community Development, Public Works, and Recreation Services.
In addition, the economic development program would fall within this portfolio given the collaborative approach
required among these departments for future development strategy, evaluation, and execution. The Internal Services
portfolio would comprise the various support functions required to administer efficient and effective service delivery,
including HR, Legislative and Information Services, and Administrative Services. Collectively, these functions
represent the backbone of City operations, often with overlapping coordination responsibilities. They help engage
and answer residents’ inquiries while providing internal customer service to front-facing departments through
effective systems, policies, and procedures.
With shared supervisory responsibility and functional alignment, day-to-day oversight should be streamlined,
providing increased capacity for strategic initiatives. Oversight responsibility within the Internal Services portfolio
should encompass strategic communication and process improvement efforts. Although staff in the Legislative and
Information Services department support public outreach and engagement, there is no coordinated policy or strategic
approach. Leadership within the CMO should provide guidance and direction to all departments regarding how
communication is delivered to the community. Moreover, the operational efficiency recommendations within this
report highlight opportunities for the City to continue modernization efforts that leverage technology and electronic
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12 CITY OF ARROYO GRANDE
workflow. Leadership and staff within the CMO should prioritize, plan, and champion these efforts over time,
connecting the impacted departments and overall City goals. Finally, as mentioned previously, developing an
economic development strategy and program should be a strategic focus for the executive position overseeing the
Operations portfolio. The following recommendation details how the City can build a proactive economic
development program.
Recommendation 3: Establish a proactive Economic Development Program.
The City Council of Arroyo Grande has prioritized economic development to enhance revenue and meet the
increasing demand for City services. This commitment was formalized in the 2012 Economic Development Element
of the City’s General Plan, which outlines four key goals for guiding economic development initiatives. These goals
serve as a framework for establishing priorities, assessing the economic impact of land use decisions, and measuring
progress in policy implementation. The goals are to:
1. Create a thriving economy
2. Meet unmet community needs
3. Promote business activity
4. Provide superior customer service
The City recognizes that the 2012 Economic Development Element is outdated and plans to integrate an updated
market study as part of the General Plan update. Within the organization, economic development efforts are
decentralized and primarily reactive. Related activities are limited to work within the Community Development
Department, focused on private development projects, and the responsibilities carried out by the Recreation Services
Department in support of the City’s Tourism Business Improvement District (TBID). Under this approach, economic
development activities are performed in response to emerging opportunities or challenges. As part of the General
Plan update and associated refresh of economic development goals and strategies, it will be important to transition
to a proactive approach. Arroyo Grande’s decentralized approach to economic development is not unique; among
the peer agencies reviewed by the project team, only Atascadero has dedicated Department of Economic and
Business Development with a Deputy Economic and Community Development Director position responsible for
economic development activities.
A proactive approach to economic development involves a multifaceted strategy tailored to the City of Arroyo
Grande’s unique characteristics and challenges. Key components include:
1. Strong leadership: Strong leadership from the City Council, City management, staff, economic development
agencies, and key business leaders is needed to guide the implementation of initiatives and ensure
accountability.
2. Strategic planning: Economic development strategic plans should set clear and actionable objectives, have
timelines, assign implementation responsibilities, and include measurable outcomes to track success against.
3. Resource planning: A sustainable funding plan is needed to fund economic development projects and
acquire properties. This plan should include general fund support, public-private partnerships, and grant
funding.
4. A business retention and expansion program (BRE): Assisting current businesses within a community to
succeed and expand ensures a vibrant, healthy business ecosystem by preserving and increasing local jobs
and tax revenues. Therefore, a BRE program is critical to a proactive economic development strategy. It
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 13
involves creating relationships with existing businesses to identify challenges and growth opportunities and
providing assistance where possible. This assistance can include13:
o Identifying available properties for future operations
o Securing financing for new equipment or operations
o Identifying workforce development opportunities
o Assisting with permitting, licensing, or infrastructure needs
o Technical assistance for growth opportunities or challenges
5. A comprehensive catalog of marketing collateral: Maintaining an extensive catalog of marketing materials
that effectively communicate to prospective businesses the community's benefits, available properties,
incentives, market and demographic data, and more.
6. Interdepartmental coordination: Economic development projects often require extensive coordination
between multiple departments within a city, including Administrative Services, Public Works, Community
Development, and more.
7. Engagement with external stakeholder groups: Establishing strong relationships with local, regional, and
state stakeholder groups, such as educational institutions, economic development organizations, non -profit
organizations, and others, will identify available resources and support local economic development efforts.
8. Market accessibility: Improving market accessibly through infrastructure improvements and other means
will help remove barriers to entry that may otherwise keep a business from being in the community.
9. Data-driven decision-making: A proactive economic development strategy must be informed by data
related to economic indicators, business trends, employment statistics, demographics, and other relevant
factors. This information will inform decision-making and help tailor strategies to economic shifts.
10. Leveraging City-owned assets through public-private partnerships: Positioning City-owned assets, like
land or buildings, to attract private investment, create jobs, and support community goals through business
partnerships.
Many of these elements are already included in the 2012 Economic Development Element. For example, it outlines
various best practices strategies to enhance economic growth, including, but not limited to14:
• Maintaining a comprehensive marketing strategy to promote the City of Arroyo Grande as a business -
friendly community
• Encouraging adequate infrastructure to support business expansion, redevelopment, and new development
• Performing outreach to the development community, real estate brokers, and other stakeholder groups to
identify opportunities
• Monitoring business trends
• Supporting a Citywide database of available real estate
With this foundation in place, the City is well-positioned to translate these strategies into actionable tasks and develop
related trackable metrics that could be incorporated into a proactive economic development strategy.
Recommendation 4: Create an Economic Development Coordinator to support the
Economic Development Program.
The success of a proactive Economic Development Program depends on the City’s commitment to implementing it
with focused dedication and consistency. The City’s decentralized approach to economic development has restricted
its ability to achieve the goals and strategies outlined in the 2012 Economic Development Element. This experience
13 “Why a Business Retention and Expansion Program Matters,” International Economic Development Council .
14 “Economic Development Element of the City of Arroyo Grande General Plan,” October 9th, 2012.
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14 CITY OF ARROYO GRANDE
clearly demonstrates that, without dedicated resources, even the best-designed strategy is unlikely to be effective. To
transition from planning to action, the City must invest in staff who can lead, coordinate, and advocate for this
initiative.
Identifying a staff member to lead economic development activities provides focused leadership and accountability
for implementing the City’s strategic goals. An economic development staff member can serve as a central point of
contact for businesses, developers, and community partners, ensuring consistent communication and responsive
service. This role helps translate long-term plans into actionable initiatives, tracks progress and fosters cross-
departmental coordination to streamline processes that impact business growth. Additionally, dedicated staff can
proactively pursue funding opportunities, maintain relevant economic data, and strengthen partnerships with
workforce development and education providers. By investing in this capacity, the City can more effectively support
local businesses, attract new investment, and promote sustainable, inclusive economic growth.
To establish dedicated economic development staffing, the City should transfer the part-time Special Events
Specialist position from the Recreation Services Department to the CMO and reclassify it as a full-time Economic
Development Coordinator. This role already entails significant responsibilities related to economic development,
particularly in supporting the TBID program. The TBID funds projects, programs, and activities that enhance the
local lodging industry and strengthen the City’s tourism economy. As part of this function, the City collects a 2%
assessment from lodging businesses within its jurisdiction, which is utilized to promote the lodging industry.
In addition to supporting the TBID, the Economic Development Coordinator should have a broader scope of
responsibilities, including:
• Overseeing the execution of a comprehensive economic development strategy (as recommended in this
report and developed as part of the General Plan update phase 10: Economic Development Studies)
• Building and maintaining relationships with local businesses and external stakeholder groups
• Initiating a comprehensive Business Retention and Expansion program
• Establishing detailed metrics and benchmarks to evaluate the effectiveness of economic development
initiatives
• Conducting research and advising the City’s leadership on emerging trends and relevant topics
• Coordinating and managing economic development consultants' contracts during the implementation of
strategies
Overall, the Economic Development Coordinator role would provide a resource to collaborate with the business
community, foster relationships, and proactively seek opportunities to attract and grow businesses in the City.
Placing this position in the CMO would enhance focus and coordination among different departments, particularly
Public Works and Community Development, on projects and activities that maximize economic development
opportunities.
This position should be a part of the Management Group due to the need for confidentiality and align with the
operations portfolio of departments, reporting directly to Assistant City Manager responsible for overseeing that
portfolio. Assigning executive supervisory responsibilities ensures that this position receives dedicated attention,
mentorship, and supervision, fostering collaboration with other City departments and reinforcing accountability . In
addition, executive leadership should continue to provide strategic oversight and coordination for all economic
development activities. Formalizing the economic development function within the CMO enables the City to
respond swiftly to challenges and opportunities while ensuring that activities align with the City's comprehensive
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 15
and strategic planning efforts. It also provides an opportunity to measure the success of economic development efforts
and clearly understand any future resource needs the City may have to achieve its goals.
To relocate and reclassify the Special Events Specialist position, the City Manager should work with the Recreation
Services Director, HR staff, and Administrative Services staff to identify any necessary adjustments to the
compensation structure associated with changing the role from part-time to full-time, develop a job description for
the Economic Development Coordinator role, and seek any required approvals from City Council. As part of
determining classification, it will be important to consider the executive reporting structure and confidential nature
of information this position will have access to. The estimated change in compensation to reclassify the Special Event
Specialist as a full-time Economic Development Coordinator is approximately $110,000, inclusive of benefits. This
estimate considers the City’s existing compensation structure and addition of full-time benefits. However, City
Management and HR staff should determine the actual compensation package based on the experience and
qualifications of the person identified to fill the position.
A comprehensive training program related to economic development initiatives should also be developed. The City
should consider having the position pursue an economic development-related certification, such as Certified
Economic Developer (CEcD) from the International Economic Development Council (IEDC) or Economic
Development Finance Certification offered by Grow America. These certification programs vary in requirements
and price. Class prices for IEDC’s CEcD program were not readily available. The Economic Development Finance
Certification, offered by Grow America, costs approximately $7,400.
OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 5: Continue modernization efforts to streamline and reduce paper-
based processes.
Technology enhances operational efficiency, streamlines workflows, and enables data-driven decision-making within
local government operations. Adopting and implementing various software systems and technology can reduce
administrative burdens, improve service delivery, and provide valuable insights for long-term planning.
The City has already adopted systems that have helped modernize operations. For example, the Community
Development Department utilizes Citizenserve®, a cloud-based software suite providing solutions for permitting,
code enforcement, licensing, planning, land management, request tracking, and more. Additionally, Laserfiche® is
used to manage documents and records. Finally, the City is implementing Munis®, an enterprise resource planning
software that allows for centralized management of core functions, inclu ding finances, procurement, HR, payroll,
revenue tracking, and utility billing.
As part of each department’s operational review, Raftelis identified additional o pportunities for continued
modernization. In an organization that relies on staff who cover multiple functions and areas of responsibility,
investments in technology will help balance growing workload demand with limited financial resources. This is
particularly true for administrative support functions. The City’s reliance on paper-based processes, filing, and
records management increases staff workload that could otherwise support direct service provision. It also provides
the ability to create a regular ongoing reporting structure that would assist in management and supervision. A
summary of technology and system modernization that will help streamline and improve operations for various City
departments includes:
Utility Billing and Payroll System: As the City continues its implementation of Munis, upgrading the utility billing
and payroll system will improve accuracy, enhance reporting capabilities, and reduce redundancies by automating
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16 CITY OF ARROYO GRANDE
routine processes. The City was already preparing the Munis payroll implementation at the time of project interviews
and planned to subsequently start the utility billing implementation. These transitions will also allow for better
tracking of expenditure and revenue, supporting sound data-driven financial decision-making.
Computerized Maintenance Management System (CMMS): A CMMS is a software solution that enhances a City’s
ability to plan, monitor, and track maintenance tasks and the condition of infrastructure assets. Implementing a
CMMS will modernize the City’s approach to asset management by providing real-time data on maintenance needs,
asset lifecycles, and work history. It will enable the City to produce work orders for reactive and preventative
maintenance tasks and improve operational efficiency by reducing unplanned downtime, optimizing preventive
maintenance schedules, and extending the life of critical infrastructure assets. A CMMS will also support budget
planning by providing insights into long-term maintenance costs.
Public Records Request Management System: The City's current use of Laserfiche has improved records
management and retrieval, demonstrating a strong commitment to transparency and compliance. Building on this
success, an electronic records request process will enhance efficiency by automating workflows for public records
requests and managing compliance with legal requirements. This will reduce manual effort, ensure timely responses,
and minimize non-compliance risk.
Advanced Metering Infrastructure (AMI) for Utilities: AMI technology provides real-time water and electric usage
monitoring, reducing meter reading costs and enabling proactive maintenance. With remote data collection, utility
providers can detect leaks, identify usage trends, and improve customer service by offering detailed consumption
data. AMI also facilitates demand forecasting, supports conservation efforts, and enhances revenue accuracy.
By integrating these systems, the City can achieve:
• Increased efficiency through automation and streamlined workflows
• Improved service delivery via real-time data and enhanced coordination
• Enhanced financial management with accurate billing, payroll, and maintenance tracking
• Stronger compliance and transparency with automated records management
• Better resource allocation through predictive analytics and preventive maintenance
Acquiring new software programs and technology will increase the City's operational costs, so purchases should be
spread over time. A phased implementation plan should be developed to ensure a smooth transition from manual to
electronic processes. Additionally, leveraging grant funding and cost-sharing opportunities should be explored to
mitigate financial impacts. As systems and software are purchased and implemented, it will also be essential to ensure
staff are trained to utilize each program properly to maximize its effectiveness. Finally, the City must ensure access
to these programs by supplying enough equipment (computers, tablets, etc.) to utilize the systems.
The City’s capital improvement plan includes anticipated investment in many of these systems, including utility
billing and payroll system Munis® upgrade, Public Records Request management system, and AMI for utilities. By
continuing to invest in these technological advancements, the City will strengthen its ability to serve the community
while optimizing internal operations.
Community Development
The Community Development Department provides services that support the development of the built environment,
including both built and open spaces. According to the City’s FY2023-25 Biennial Budget, the department is
committed to fostering a diverse, equitable, and thriving community while preserving the City's unique character and
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 17
environment. By balancing economic opportunities with responsible land-use planning and development, the
department ensures sustainable growth and an enhanced quality of life for all residents.15
The department’s budgeted staffing complement is 7.5 FTEs, split across three divisions: Planning, Building and Life
Safety, and Community Services. The department’s organizational structure is shown below:
Community
Development
Director
1.0 FTE
Chief Building
Official
CSG Contract
Building Permit
Technician
(REMOTE)
1.0 FTE
Planning Manager
1.0 FTE
Associate Planner
1.0 FTE
Assistant Planner
1.0 FTE
Office Assistant I
(Scanning)
0.5 FTE
Permit Technician
1.0 FTE
Planning
Building and Life Safety
Community
Services Specialist
1.0 FTE
Community Services
Building Inspector
CSG Contract
Intern
(VACANT)
0.5 FTE
Figure 3: Community Development Organizational Structure, FY2024-25
CORE SERVICE MATRIX
The table below provides an overview of the department’s core services, but it is not meant to be all-inclusive.
Table 7: Community Development Department Core Service Matrix
Division/Program Area Activities and Service Levels
Planning
• Assist with future growth and development planning
• Review of current development proposals
• Administer the City’s Development Code
• Address planning issues related to transportation, housing, community
facilities, economic growth, public safety, open space, urban design, and
land use
Building and Life Safety
• Review project plans for code compliance
• Issue building permits
• Conduct inspections related to state and local building, fire, mechanical,
electrical, plumbing, energy, and disabled access codes
• Enforce the International Property Maintenance Code
• Conduct hazardous material and water system analysis
• Collaborate with the Five Cities Fire Authority on annual fire inspections,
wildland-urban interface regulations, and fire prevention activities
Community Services
• Provide information and educate the public on City regulations and programs
• Administer the City’s code compliance program
• Perform field inspections and respond to citizen complaints related to public
nuisances and quality of life issues
15 City of Arroyo Grande, FY2023-25 Biennial Budget.
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18 CITY OF ARROYO GRANDE
Division/Program Area Activities and Service Levels
• Support education, enforcement, and inspection activities for CalRecycle
Organics Regulations compliance
STAFFING LEVEL HISTORY
Overall, department staffing has been reduced by 28.6% since FY2021. This change was primarily due to the shift of
engineering staff from the Community Development Department to the Public Works Department during the
FY2023-24 budget cycle and contracting out for two of the three positions in the Building and Life Safety Division.
Authorized staffing, including contracted building staff of 9.5 FTEs, is consistent with the peer benchmarking
community average of 9.0 FTEs. The full department staffing history is detailed in the following table.
Table 8: Community Development Department Staffing History
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget
% Change
FY20-FY25
Director 1.0 1.0 1.0 1.0 1.0 0.0%
Planning Manager 0.0 0.0 1.0 1.0 1.0 100.0%
Associate Planner 1.0 1.0 1.0 1.0 1.0 0.0%
Assistant Planner 1.0 1.0 1.0 1.0 1.0 0.0%
Community Services
Specialist 0.0 0.0 1.0 1.0 1.0 100.0%
City Engineer 1.0 1.0 1.0 0.0 0.0 -100.0%
Associate Engineer 0.0 1.0 1.0 0.0 0.0 0.0%
Assistant Engineer 1.0 1.0 0.0 0.0 0.0 -100.0%
Permit Technician 1.0 1.0 1.0 1.0 1.0 0.0%
Program Analyst 1.0 1.0 0.0 0.0 0.0 -100.0%
Engineering Inspector 1.0 1.0 1.0 0.0 0.0 -100.0%
Building Official 1.0 1.0 0.0 0.0 0.0 -100.0%
Building Permit Technician 1.0 1.0 1.0 1.0 1.0 0.0%
Office Assistant I 0.0 0.0 0.5 0.5 0.5 100.0%
Community Development
Intern 0.5 0.5 0.0 0.0 0.0 -100.0%
Total 10.5 11.5 10.5 7.5 7.5 -28.6%
STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 6: Formalize Planning Manager supervisory responsibilities to reduce
the Director’s span of control.
Under the current organizational structure, the Director of Community Development supervises all department staff
and oversees the contractual positions provided by CSG Consultants. As part of the FY2022-23 Budget, a Planning
Manager position was added to the department. This job classification includes supervisory responsibility; however,
staff in the Planning Division do not report directly to the Planning Manager.
A large span of control at the Director level limits the time available to provide strategic direction for the department,
and for engagement and outreach with executive leadership and the community. According to the department’s self-
reported workload report, used as an internal planning tool, around 10% of the Director’s time is spent on personnel
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 19
issues each month. The Community Development Department is integral in advancing Council goals, especially
related to economic development and vitality. Moreover, the General Plan update that is currently underway is a
large-scale strategic project within this department. The project requires extensive communication and engagement
with the community and project consultants to help shape the future vision for community development in the City.
To allow the Director to serve a more elevated role in the various strategic priorities of the City, it is a best practice
to reduce the span of control and assign supervisory responsibility to the Planning Manager for the day-to-day
operations of the Planning Division. The Assistant Planner, Associate Planner, and Permit Technician should all
report directly to the Planning Manager. In many local government community development departments,
operational supervision is assigned to a Planning Manager, a Building Official , and, at times, a Code Enforcement
Officer who reports to the Director. These positions provide daily oversight and accountability for the performance
of the functional areas. Formalizing the Planning Manager’s oversight of the Planning Division staff creates
structural alignment within the department, resulting in one direct report to the Director for each core function.
The City primarily outsources building and life safety services. Staff describe a good working relationship with the
consultant that continues to support effective service delivery. Given the unique nature of this arrangement, it is
important that the Director has adequate bandwidth for in-house contract management to ensure that the consultants
adhere to performance standards in the contracts. Ongoing assessment of this contract and consideration for
outsourced or in-house support is imperative to maintain service delivery expectations with the community and
effective monitoring of the department’s operating budget resources.
Recommendation 7: Increase the Community Development Department Office Assistant
position from part-time to full-time.
A key theme arising from interviews with staff in the department was the lack of available administrative support.
The Community Development functions consist of multiple administrative tasks, including but not limited to writing
and preparing reports for City Council meetings, compiling Planning Commission packets, providing commission
meeting notices, and running commission meetings, and documenting the City’s land use changes and requirements.
At present, the department has no administrative support for staff and a half -time (0.5 FTE) Office Assistant
responsible for scanning paper documents. The City’s planners noted that they perform their own administrative
work without support. While feasible, this is an inefficient use of planning staff capacity that could be applied toward
processing more projects, leaving the creation and formatting of reports and agendas to administrative staff.
As part of the community benchmarking analysis, Raftelis reviewed administrative support within Community
Development departments. Across the peer group, all cities had at least a full-time equivalent administrative position,
except for Grover Beach, with a part-time 0.25 FTE. No community had more than two dedicated administrative
support staff. The City’s current 0.5 FTE falls below the peer average. In addition, the focus on scanning and filing
for this position highlights the continued modernization opportunities for electronic workflow and document
management. The ability to implement digitization efforts will lead to enhanced capacity for conducting
administrative tasks.
The department’s administrative support should be increased to a full-time equivalent to provide staff administrative
task support. This additional support will allow staff greater capacity for improved customer service and processing.
The position will support all department functions, including preparation and execution of Planning Commission
meetings, and as such should report directly to the Community Development Director.
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20 CITY OF ARROYO GRANDE
The total estimated cost to increase this position to full-time, including benefits, is $43,400 per year based upon the
current salary schedule. The figure below shows the proposed new organizational structure for the Community
Development Department.
Community
Development
Director
1.0 FTE
Chief Building
Official
CSG Contract
Building Permit
Technician
1.0 FTE
Planning Manager
1.0 FTE
Associate Planner
1.0 FTE
Assistant Planner
1.0 FTE
Permit Technician
1.0 FTE
Planning
Community
Services Specialist
1.0 FTE
Community Services
Building Inspector
CSG Contract
Office Assistant
1.0 FTE
Building and Life Safety
Figure 4: Proposed Community Development Department Organizational Structure
OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 8: Replace Adobe® for plan review with Bluebeam®.
The City of Arroyo Grande contracts with an outside firm to provide building services, such as planning review and
permitting. Internal staff uses Adobe for reviewing electronic plan submittals, which is not purpose-built for this
process, while the contracting firm uses Bluebeam, a software common in the community development industry for
electronic plan review. Because of the difference in software used, internal staff must convert their plan review
documents from Adobe in order for the contractors to read them in Bluebeam. This results in redundant work and
time that could be spent on other tasks.
Further, staff reported that Adobe struggles with their typically large plan review files and that the application can
be unstable, impacting the time needed for a review. Using Adobe for plan review, as opposed to a tailored software
option also limits staff because comments or requested changes cannot be linked to the relevant portion of the
associated plan. Some staff shared that this limitation has occasionally contributed to confusion for the applicant.
Features in Bluebeam would streamline and clarify feedback provision to applicants and improve the customer’s
experience.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 21
For these reasons, it is recommended that the City fund Bluebeam for the Community Development Department
replace Adobe for a plan review. Licensing will require budget expenditures ranging from $260 to $330 per user,
totaling around $1,300 to 1,980 annually16. This technology-led process improvement will lead to greater operational
efficiency, improved customer experience, and more effective use of staff time.
Recommendation 9: Collect plan review fees at the time of application.
The Building Permit Technician is responsible for the intake of building permit applications, routing plans for review,
and routing corrections back to applicants. Approximately five to 10 applications per month are walked into the
public counter, and additional applications are emailed to the technician. Associated fees are paid after all reviewers
have approved the application and contractor information has been provided. The building technician then
downloads the plans, issues the building permit, stamps the plans and supporting documents, and creates an
inspection record.
Currently, no fees are collected for plan review at submittal; they are instead collected when the permit is issued. It
is a best practice to determine and collect fees at the time of application submittal to ensure optimal cost recovery for
staff time spent reviewing a project. Revenue collection also suffers if the application is not approved or if the
applicant decides not to seek a building permit for some reason.
Enacting this recommendation will require changes to department intake processes and instructions for applicants,
which should be updated to reflect the new timing for fee collection. The process change would likely not require a
code amendment because, as interpreted by the project team, collecting fees at the time of application is acceptable
under the Arroyo Grande Development Code (Title 16 Development Code Chapter 16.12.030).
City Manager’s Office
The CMO provides leadership and coordination across the City . This includes ensuring effective operations
management, supporting the City Council in achieving the community’s vision, guiding policy development, and
advocating for the City’s interests on local and regional issues.
The CMO is staffed with 3.5 FTEs, as shown in the figure below. The Executive Secretary part -time position was
added during the mid-cycle FY2024-25 budget update. In addition, the City Manager is responsible for overseeing
the contracted City Attorney.
16 “Bluebeam Pricing.” Bluebeam, https://www.bluebeam.com/pricing/.
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22 CITY OF ARROYO GRANDE
Figure 5: City Manager’s Office Organizational Structure, FY2024-25
CORE SERVICE MATRIX
The CMO is comprised of two elements: City Management and Human Resources. An overview of the core services
performed by each program area is provided below and is not meant to be all-inclusive.
Table 9: City Manager’s Office Core Service Matrix
Division/Program Area Core Services
Leadership and Strategic Oversight
• Oversee the daily operations of all general government departments
• Implement City Council policies
• Ensure adherence to the City’s laws and regulations
• Provide strategic direction and policy prioritization to staff
Human Resources
• Manage personnel recruitment and employee separation
• Oversee performance evaluations and disciplinary processes
• Coordinate labor relations and collective bargaining activities
• Administer employee benefits programs
• Provide training and professional development opportunities for staff
• Classification and compensation
STAFFING LEVEL HISTORY
Since 2020, the CMO added a Management Analyst (in FY2022-23) and transferred the HR Officer from
Administrative Services to the CMO. The staffing history details are shown in table 10.
Table 10: City Manager’s Office Staffing History
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget
% Change
FY20-FY25
City Manager 1.0 1.0 1.0 1.0 1.0 0.0%
Human Resource Officer 0.0 0.0 1.0 1.0 1.0 100.0%
Management Analyst 0.0 0.0 1.0 1.0 1.0 100.0%
Executive Secretary 0.0 0.0 0.0 0.0 0.5 100.0%
Total 1.0 1.0 3.0 3.0 3.5 75.0%
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 23
STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 10: Add one full-time Executive Secretary position responsible for
central reception and administrative support in City Hall.
As part of staff interviews, Raftelis learned about the various roles and responsibilities for each position. A common
workload driver among staff in City Hall was administrative responsibilities, such as answering the phone, supporting
customer walk-ins, providing support to employees, council administration, scheduling, and filing. The size of the
organization is such that many internal services staff wear multiple hats throughout the day and often lean on other
departments to cover the administrative workload demand. Many of these positions are also part-time, resulting in
schedule adjustments and shift coverage. The figure below depicts Raftelis’ understanding of various administrative
functions and what positions in City Hall support those functions.
Figure 6: City Hall Administrative Support Positions and Functions
As shown in the graphic above, administrative support is scattered throughout the organization. While this ensures
workload demand is met, it creates inefficiency among staff who constantly toggle between core responsibilities and
covering administrative support needs. The need to respond to counter customers also disrupts their work, reducing
efficiency.
To assess overall resourcing to meet administrative workload, Raftelis analyzed benchmarking communities’
structure and staffing for administrative job titles compared to the City. This exercise made inherent assumptions
regarding job titles and typical responsibilities and may not be reflective of actual practice across each of the peer
cities. Nevertheless, the analysis provided insight regarding typical administrative support resourcing for similar
agencies. As indicated in the table below, the City lags behind its peer counterparts when comparing total staff to
administrative staff Citywide. The higher the ratio, the less administrative staff are available to support City
operations. This helps to explain why the administrative workload is dispersed across multiple positions, some of
which do not align with core responsibilities (e.g., Senior Accounting Clerk covering the front counter).
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24 CITY OF ARROYO GRANDE
Table 11: Administrative Support Benchmarking Analysis
Peer Agency Range
The Ratio of Total Staff to
Administrative Staff
(Citywide)
Low 11.9
Average 14.9
High 20.0
Arroyo Grande 26.1
A full-time central reception administrative support position is recommended for City Hall. This position should be
structured as a generalist responsible for initiating customer service and gaining a basic understanding of the City’s
permit and development processes and utility billing, which comprise a significant share of typical inquiries. To
support the roles and responsibilities of this position, the City should include a computer and monitor, with access
to key network drives and/or applications that can aid problem-solving and inquiry resolution. The position will
require training from multiple department staff members to be successful in a generalist role. For non-traditional or
technical inquiries, this position can direct customers to department specialists as needed. Centralizing this
responsibility with a dedicated position should reduce distractions and increase capacity within Finance and
Community Development staff to focus on core services.
In addition, the other area of responsibility for this full-time position is to provide administrative support for the
CMO, such as taking telephone calls and scheduling. Creating a dedicated administrative position, will improve
executive leadership’s responsiveness to community partners and the Council, reduce operational tasks that crowd
out their ability to focus on strategic priorities and improve the capacity of the Management Analyst position in the
CMO to provide analytic support for policy directives, special projects, and process improvement efforts.
The total estimated cost for this position, including benefits, is $100,100 per year based upon the salary schedule
effective July 2024.
Recommendation 11: Increase the part-time Executive Secretary position in HR to full-
time and retitle to Human Resources Specialist.
The City’s HR function is embedded within the CMO. This is common practice among peer cities and reinforces
HR as a strategic partner for the organization. Recently, the City Council authorized the hiring of a part-time
Executive Secretary to support the HR Officer. Workload demand for HR services can vary throughout the year;
however, like most local government organizations, internal service level expectations continue to increase. The City
is aware of shifting workforce dynamics and composition, resulting in the need for proactive succession planning,
organizational development and training, and expedient hiring to maintain service delivery. Moreover, the growing
complexity of labor relations, employee relations, and risk management all add to workload drivers for HR.
In order to meet the growing service demands, the part-time position was hired to handle day-to-day tasks and the
transactional activities that support employees. This improved the HR Officer’s capacity to focus on labor and
employee relations, along with strategic initiatives. In practice, however, the part-time resource has been insufficient
to support the various core services, and the HR Officer has had to rely on the Management Analyst position to meet
workload demand. Similar to the central reception full-time staffing recommendation, a full-time second position is
recommended for HR. Increasing the current part-time position to full-time will ensure workload demand is met and
improve the organization’s ability to adapt to evolving needs in the future. Moreover, it streamlines the Management
Analyst’s role and responsibilities to focus on financial and policy analysis, special projects, and process
improvement, as well as support strategic initiatives and budget development.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 25
Investing in additional administrative staff now will also position the City for continuous improvement. Sufficient
staff provides the capacity to implement new technology and workflows that lead to more efficient processing. They
can also reduce reliance on outside contractors and consultants for core services. For example, within HR, adequate
staffing provides the opportunity to review and improve existing labor contracts. This effort can address complex
and nuanced policies that lead to inconsistent application or the need to rely on outside legal counsel for
interpretation or negotiation.
The total estimated cost to increase this position to full-time, including benefits, is $63,300 per year based upon the
current salary schedule.
City Manager
HR Specialist
1.0 FTE
Economic
Development
Coordinator
1.0 FTE
Assistant City
Manager
1.0 FTE
Executive Secretary
Central Reception
1.0 FTE
Management
Analyst
1.0 FTE
City Attorney
(Contracted)
1.0 FTE
Human
Resources
Officer
1.0 FTE
Human Resources Economic Development Administrative and Analytical
Support
Figure 7: Proposed City Manager’s Office Organizational Structure
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26 CITY OF ARROYO GRANDE
Legislative and Information Services
According to the City’s FY2023-25 Biennial Budget, the Legislative and Information Services Department’s purpose
is to “be an effective, valuable communication point for the City Council, public, and staff; to ensure transparency
and access to the legislative process and ensure compliance with applicable State and local laws and regulations
relating to municipal elections, open meetings, financial reporting, and access to public records.”15
The department is staffed with 2.6 FTEs, including the City Clerk/Director of Legislative and Information Services,
Deputy City Clerk/Communications Coordinator, and a part -time Executive Secretary. The department’s
organizational chart is shown in the figure below.
Figure 8: Legislative and Information Services Organizational Structure, FY2024-25
CORE SERVICE MATRIX
The department is responsible for two programs: the City Clerk and Public Information. An overview of the core
services performed for each program area is detailed in the table below and is not meant to be all-inclusive.
Table 12: Legislative and Information Services Core Service Matrix
Division/Program Area Core Services
City Clerk
• Provide support to the City Council, City Manager, City staff, and the publ ic
• Manage agenda process
• Administer elections and access to City records
• Attest, seal, and certify official City documents
• Receive and file petitions, subpoenas, and summons
• Manage and hold vehicle titles and registrations
Public Information
• Collect, develop, and organize information for public dissemination
• Distribute information through various media channels, including news outlets,
newsletters and mailers, social media, email, the City website, and Government Access
TV
STAFFING LEVEL HISTORY
The department previously housed the City’s IT function, but this function was relocated to the Administrative
Services Department in FY2021-22, reducing overall staffing by 2.0 FTEs. The full staffing history for the department
from FY2020-21 to the present is shown in the table below.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 27
Table 13: Legislative and Information Systems Department Staffing History
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Director 1.0 1.0 1.0 1.0 1.0 0.0%
Information Tech Manager 1.0 0.0 0.0 0.0 0.0 -100.0%
Information Tech Specialist 1.0 0.0 0.0 0.0 0.0 -100.0%
Executive Assistant/Deputy
City Clerk 1.0 1.0 0.0 0.0 0.0 -100.0%
Deputy City Clerk/
Communications
Coordinator
0.0 0.0 1.0 1.0 1.0 100.0%
Sr. Office Assistant 0.6 0.0 0.0 0.0 0.0 -100.0%
Executive Secretary 0.0 0.6 0.6 0.6 0.6 100.0%
Total 4.6 2.6 2.6 2.6 2.6 -43.5%
STRUCTURE AND STAFFING RECOMMENDATION IMPACT
There are no recommended changes to the staffing or structure for the Legislative and Information Services
Department. A handful of recommendations contained elsewhere in this report increase staff’s capacity to continue
providing core services as well as improve proactive planning and implementation of recommended operational
efficiencies.
• Streamline administrative responsibilities – with the recommended addition of a central reception
administrative position (Recommendation 10) and increasing HR staffing from 1.5 to 2.0 FTEs
(Recommendation 11), the current administrative workload for the department should decline. The
department is currently helping cover the workload demand for these functions as needed within City Hall.
While it will be important for the department to help train new hires and provide backup support, it will
streamline day-to-day responsibilities to align with core services.
• Prioritize Strategic Communications Guidance – part of the executive leadership team’s roles and
responsibilities includes oversight and guidance for key priorities in the organization (Recommendation 2).
One of those priorities is to provide guidance and oversight for communication. This should help clarify and
align the work of the Deputy City Clerk/Communications Coordinator with the organization, including a
better understanding of the desired communication approach across all departments when interacting with
the community.
OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 12: Develop a plan to automate the public records requests by
leveraging existing software to the greatest extent possible.
In interviews, staff noted that the workload associated with tracking and responding to Public Records Act (PRA)
requests from the public has grown. The Deputy City Clerk estimates that approximately 25% of the time is now
spent on public records requests. The PRA requires that Cities track and fulfill public requests for information from
the public within 10 days, with certain exceptions. The City has no control over the volume of requests, phasing over
time, or complexity. According to data provided by the department for this review, the number of PRA requests has
increased by 53.5% from FY2019 to FY2024 as shown in the figure below. The dotted trendline shows an increase
in workload.
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28 CITY OF ARROYO GRANDE
Figure 9: Public Records Request Volume, FY2019–FY2024
In interviews with several City staff, the lack of electronic records and the need for scanning of paper records was
noted. The City is attempting to modernize by digitizing hard-copy documents as quickly as possible. The Legislative
and Information Services Director/City Clerk is the City’s designated records manager. The Executive Secretary is
tasked with coordinating records management with departments for destruction and retention , and the department
has received budget funding this fiscal year for a large, outsourced scanning project. For internal staff, however, this
work typically takes a backseat to more pressing and time-restricted tasks such as supporting the City Council agenda
process. The City contracts with an outside consultant records management specialist who is knowledgeable about
State laws and retention requirements to ensure compliance and provide annual updates; contracting for this
specialization is common across municipalities. Physical records are stored in multiple buildings, including the City
Council storage, Old City Hall basement, Corporation Yard, and Women’s Club basement (the last being rented
space which costs the City money). The reduction of physical records could improve operational efficiency and save
money, reducing the need for additional staff capacity and improving response times to customers.
The City has already invested in some software tools to support these processes. The City uses Laserfiche for records
management and Escribe® for agenda production. There is, however, no software in place to automate the PRA
process workflow, which passes through multiple departments until completion. At present, PRA tracking is done
using a Microsoft® Excel spreadsheet and manual reminders on calendars. The department has plans to request PRA
software in the next budget cycle.
Given the growing volume of PRA requests and the time required to track and fulfill them, it is recommended that
the City identify and implement a software solution that would automate the tracking of these requests. The
department staff should work with a Laserfiche partner/vendor to scope the requirements to determine if the existing
solution would support an automated workflow to track requests. The Department can lean on vendor expertise and
support for other organizations with similar objectives to see what might be feasible within the City’s application
system and contract provisions. If existing software applications cannot support electronic workflow , the
identification of separate software should occur, be budgeted for, and implemented in collaboration with the IT staff.
Because Legislative and Information Services is the “hub” of the City’s records management and document workflow
processes, it is paramount that the department takes the lead in selecting appropriate software for its purposes.
Long-term, tracking and analyzing PRA requests will provide insights into typical recurring requests and the amount
of time it takes to respond. This data can inform where future process improvements would have a material impact
on operational efficiency and staff time.
86 77 74
89
140 132
FY2019 FY2020 FY2021 FY2022 FY2023 FY2024
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 29
Administrative Services
The Administrative Services Department provides accurate and timely financial and accounting information by
maintaining the City’s financial systems and adequate internal controls, promoting transparency and fiscal
responsibility. Additionally, the department collaborates with City departments to offer strategic technical guidance,
ensuring technology initiatives are implemented efficiently and responsibly. The department encompasses seven
FTEs across two divisions: Financial Services and IT. The organizational structure is depicted in the figure below.
Administrative
Services Director
1.0 FTE
Accounting
Manager
1.0 FTE
Sr. Accounting
Clerk (AP)
1.0 FTE
Sr. Accounting
Clerk (Utility Billing)
1.0 FTE
Sr. Accounting
Clerk (Payroll)
1.0 FTE
IT Specialist
1.0 FTE
IT Manager
1.0 FTE
Finance Information
Technology
Figure 10: Administrative Services Organizational Structure, FY2024-25
CORE SERVICE MATRIX
An overview of the core services provided by each division is detailed in the table below and is not meant to be all-
inclusive.
Table 14: Administrative Services Core Service Matrix
Division/Program Area Core Services
Financial Services
• Manage the City’s financial systems including utility billing, accounts payable,
payroll, budgeting, and regulatory compliance
• Prepare the City’s annual operating budget and Annual Comprehensive
Financial Report (ACFR)
• Submit required reports to the state and other agencies
• Provide accounting services for the FCFA
• Track and ensure compliance with Measure E and Measure O sales tax
measures
Information Technology
• Maintain and upgrade the City’s IT infrastructure
• Ensure network security and manage technology replacement programs
• Provide technical support to City departments
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30 CITY OF ARROYO GRANDE
STAFFING LEVEL HISTORY
Budgeted staffing totals in the department since FY2021-22 have stayed relatively consistent. However, as shown in
the table below, the Department went through a reorganization in FY2021-22, during which the City’s HR function
was relocated to the CMO, and the IT Staff joined the department, having previously been part of the Legislative
and Information Services Department. This reorganization led to the net gain of one FTE in the department.
Table 15: Administrative Services Department Staffing History
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Director 1.0 1.0 1.0 1.0 1.0 0.0%
Human Resource Manager 1.0 0.0 0.0 0.0 0.0 -100.0%
Information Tech Manager 0.0 1.0 1.0 1.0 1.0 100.0%
Accounting Manager 1.0 1.0 1.0 1.0 1.0 0.0%
Accounting Supervisor 0.0 0.0 0.0 0.0 0.0 0.0%
Senior Accounting Clerk 3.0 3.0 3.0 3.0 3.0 0.0%
Information Tech Specialist 0.0 1.0 1.0 1.0 1.0 100.0%
Total 6.0 7.0 7.0 7.0 7.0 16.7%
STRUCTURE AND STAFFING RECOMMENDATIONS
The Finance Division workload is significant, with many tasks that have defined timelines that can increase the
volume of work at different periods throughout the year. Recently, the division experienced turnover in one position,
which is common for the profession, and it highlighted the impact of the existing workload, especially for the other
positions responsible for absorbing the tasks. The implementation of a new enterprise resource planning (ERP)
computer system required significant Department resources, in addition to meeting existing primary duties for each
position. With the vacancy now filled, backup support and workload are adequately distributed; however, capacity
for new initiatives or compliance requirements remains limited.
Recommendation 13: Add one Senior Accounting Clerk to the Finance Department.
The ability of the Finance Division to perform on time successfully is dependent upon staffing. Should there be no
vacancies, the current staffing complement can meet basic needs and deadlines; however, turnover in recent years
has highlighted the impact that vacancies can have on the department’s key tasks, such as bank reconciliation and
audit completion. Currently, each Senior Accounting Clerk position has a designated duty or function. The
Accounting Manager is responsible for both back-up support and oversight for each of these functions. Ideally, the
Financial Services staff could be cross trained in multiple functions. The recent Accounting Manager vacancy also
highlighted the need to rely on external consultant support for core services like financial planning and reporting.
Outsourcing can be an effective way to add staff capacity without bringing on permanent staff salaries plus benefits.
However, if the functional support provided is for routine tasks performed on a recurring basis, in -house staff over
the long run are likely a more cost-effective solution. Consultants can still be utilized to support highly technical or
specialized organizational needs. For this reason, adding an additional financial services position in the near term
may yield a net cost benefit to the City while reducing the risk of performance declines when positions are vacant. It
would also provide for additional backup to cover for absence (e.g., for vacation or training) and assist with
succession planning so the City can internally promote staff rather than depend upon external recruitment when a
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 31
current staff member leaves or retires. The total estimated cost for this position, including benefits, is $105,900 per
year based upon the current salary schedule.
A short-term opportunity to reduce reliance on financial consultants may include collaboration with the
Management Analyst position in the CMO for budget development. Often, policy analysis is directly tied to resource
planning. This position holds a unique opportunity for the City to leverage in-house analytical capabilities that
connect resource allocation and planning with policy priorities. Regardless, it is important that the department assign
in-house contract management responsibilities to ensure performance standards are being adhered to by external
contractors.
Recommendation 14: Leverage the upcoming IT Master Plan to determine staffing levels.
As shown in the Administrative Services organizational chart above, the City has two full-time IT staff members, the
IT Manager and an IT Specialist. These two positions perform all IT work, including user support, connectivity to
the FCFA technology system, Police mobile data terminals and car/bodycam video, Public Works SCADA support
and connectivity, fuel depot technology, Citywide wireless and internet systems, two servers and data centers,
cybersecurity, and audio-visual support including for the City Council chambers. Outsourcing work is minimal
except for firewall and switching administration, which is performed by consultants through an annual co ntract and
for the implementation of special projects and new systems.
The City is moving to modernize its technology infrastructure. To do so, the City will continue to invest in additional
IT resources over time to ensure that the City’s limited staff can work as efficiently and effectively as possible. Staff
Citywide acknowledge this and recognize that effective implementation will require ongoing technical support for
various applications that contribute to service delivery. IT staff noted that while they work very quickly, there is no
dedicated support for public safety (Police and Fire) after normal business hours; the IT Manager typically responds
either by phone or will come in, if necessary, but has worked to train Police and Fire staff to be as self -sufficient as
possible.
Based upon data provided by IT staff, the unit averaged about 59 work orders/service tickets per month over the
calendar year 2024. The service request ticketing system is fairly new and not 100% accurate , but it provides some
insight into work volumes. A cursory review of the ticket log shows that the vast majority are providing service
assistance to end users, such as setting up licenses and logins, troubleshooting software errors, and more. IT staff
currently support 17 different software applications Citywide and an additional 12 for the Police Department.
Monthly ticket volumes are provided in Figure 11 below.
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32 CITY OF ARROYO GRANDE
Figure 11: Information Technology Service Tickets by Month in 2024
Several departments in interviews noted the desire for more technology to continue to make processes more efficient.
The new applications discussed included Geographic Information Systems (GIS), Tyler Munis financials, Asset
Management and work order systems, Public Records Act requests, and more. The City also continues to work to
strengthen cybersecurity to ensure its data and IT resources are safe.
The City has already issued an RFP and is in the process of developing an IT master plan with a consultant. This
plan will outline the City’s IT needs in detail, along with estimated staffing for implementation and ongoing support.
In order to gain efficiencies through greater use of automation and to improve system security, Raftelis recommends
the City fund and implement the master plan recommendations to meet the City’s technology needs and ensure
appropriate staffing levels.
The Master Plan recommendations should also inform the organizational structure of the City. IT, as a division of
the Administrative Services Department, is a common practice among the benchmarking communities analyzed for
this report; only Atascadero has a stand-alone IT department. Nationally, and certainly for larger organizations,
however, common practice is for a stand-alone IT department. It is important that the organization understand the
distinct functions of IT and work to ensure customer support needs are met. Similarly, it is important to include IT
as a strategic partner among City leadership across the organization. IT staff need to interact with departments
regularly to ensure technology solutions are working as intended. As part of succession planning, the ability to find
Director-level leadership with both finance and IT expertise is rare and difficult. The City should continue to monitor
customer service workload and resourcing requirements as outlined in the Master Plan recommendations to evaluate
whether a stand-alone department is appropriate.
The following figure shows the proposed new organizational structure for the Administrative Services Department.
64
56 60 65 64 59
82
64
55
42 45
54
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 33
Figure 12: Proposed Administrative Services Department Organizational Structure
Administrative
Services Director
1.0 FTE
Accounting
Manager
1.0 FTE
Sr. Accounting
Clerk (AP)
1.0 FTE
Sr. Accounting
Clerk (Utility Billing)
1.0 FTE
Sr. Accounting
Clerk (Payroll)
1.0 FTE
IT Specialist
1.0 FTE
IT Manager
1.0 FTE
Finance Information
Technology
Sr. Accounting
Clerk
1.0 FTE
IT Support
TBD
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34 CITY OF ARROYO GRANDE
Public Works
The Public Works Department is responsible for the design, construction, maintenance, and operations of public
infrastructure and facilities. This work is conducted by 30.8 FTEs across six divisions (Engineering, Utilities, Streets,
Parks and Landscaping, Soto Sports Complex, and Fleet Maintenance). The organizational structure is depicted in
the figure below.
City Engineer
1.0 FTE
Senior Engineer
1.0 FTE
Capital
Improvement
Project Manager
1.0 FTE
City Inspector
1.0 FTE
Utilities Manager
1.0 FTE
Utilities Supervisor
1.0 FTE
Utilities Lead
Worker
1.0 FTE
Maintenance
Worker
5.0 FTE
Water Services
Worker
1.0 FTE
Fleet Coordinator
1.0 FTE
Administrative
Secretary
1.0 FTE
Public Works
Manager
1.0 FTE
Soto Complex
Supervisor
1.0 FTE
Maintenance
Worker
1.0 FTE
Building &
Maintenance
Worker
1.7 FTE
Asst. City
Manager/Public
Works Director
1.0 FTE
Engineering
Fleet Maintenance
Utilities
Assistant Project
Manager
(VACANT)
1.0 FTE
Parks Supervisor
1.0 FTE
Parks Lead
Worker
1.0 FTE
Part-Time
Maintenance
Worker
0.7 FTE
Maintenance
Worker
2.0 FTE
Streets Supervisor
1.0 FTE
Streets Lead
Worker
1.0 FTE
Maintenance
Worker
1.0 FTE
Part-time Summer
Interns
1.4 FTE
Soto Sports
Complex
Parks and
Landscaping
Streets
Figure 13: Public Works Organizational Structure, FY2024-25
CORE SERVICE MATRIX
The table below provides an overview of the department’s core services by division, which is not meant to be all-
inclusive. Public Works operations, comprising most divisions besides engineering and leadership/administration,
were excluded from the scope of the organizational review; however, a summary of core services is included based
on a discussion with division leadership and the City’s budget document.
Table 16: Public Works Department Core Service Matrix
Division/Program Area Core Services
Engineering
• Ensure construction in the public right-of-way complies with adopted codes
and engineering standards
• Manage subdivision processing and review
• Approve final subdivision maps
• Accept offers of dedication related to subdivisions
• Enter into agreements to complete required subdivision improvements
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 35
Division/Program Area Core Services
• Conduct inspections, respond to service requests, and, in some cases, initiate
proactive code enforcement
Utilities
• Operate and maintain the City’s water and sanitary sewer systems
• Manage critical infrastructure components, including water and sewer mains,
pump and lift stations, reservoirs, and wells
Streets, Parks and Landscaping
• Maintain all city streets, sidewalks, and public rights-of-way
• Maintain storm drains and street signage
• Perform maintenance of city parks and the Soto Sports Complex
• Maintain all City-owned buildings
Soto Sports Complex
• Perform annual field maintenance activities, including hydroseeding, infield
and outfield improvements, irrigation maintenance , fence repairs, and field
lighting maintenance
Fleet Maintenance
• Perform maintenance activities on the Citywide vehicle and equipment fleet,
including oil changes, tire service, brake pad replacement, and rotor
maintenance, as well as more complex repairs
• Manage the fleet replacement and surplus vehicle/equipment programs
• Handle procurement and bidding for new vehicles and equipment
• Oversee fuel purchasing and maintain fuel pump and dispenser systems
• Annually review and manage compliance with the San Luis Obispo County Air
Pollution Control District (APCD) Permit
STAFFING LEVEL HISTORY
The scope of Raftelis’ operational and organizational assessment included Public Works leadership (Director and
Division heads), administrative support staff, and engineering staff. The Engineering Division was moved to Public
Works from the Community Development Department in FY2023-24. Overall staffing levels have increased
moderately since FY2020-21. The table below details staffing composition and changes over the past five years.
Table 17: Public Works Department Staffing History
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Public Works Administration
Director of Public Works 1.0 1.0 1.0 1.0 1.0 0.0%
Public Works Manager 0.5 0.5 0.5 0.5 0.5 0.0%
Administrative Secretary 1.0 1.0 1.0 1.0 1.0 0.0%
Capital Projects Manager 1.0 1.0 1.0 1.0 1.0 0.0%
Assistant Capital Projects Manager 0.0 0.0 1.0 1.0 1.0 100.0%
Engineering
City Engineer 0.0 0.0 0.0 1.0 1.0 100.0%
Associate Engineer 0.0 0.0 0.0 1.0 1.0 100.0%
Engineering Inspector 0.0 0.0 0.0 1.0 1.0 100.0%
Parks
Parks, Trees, and Landscape Supervisor 0.0 0.0 1.0 1.0 1.0 100.0%
Maintenance Lead Worker 1.0 1.0 1.0 1.0 1.0 0.0%
Maintenance Worker 1.0 1.0 2.0 2.0 2.0 100.0%
Part-Time Maintenance Worker 1.4 1.4 0.7 0.7 0.7 -50.0%
Streets
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36 CITY OF ARROYO GRANDE
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Public Works Manager 0.5 0.5 0.5 0.5 0.5 0.0%
Streets Maintenance Supervisor 0.0 1.0 1.0 1.0 1.0 100.0%
Maintenance Lead Worker 1.0 1.0 1.0 1.0 1.0 0.0%
Maintenance Worker 2.0 1.0 1.0 1.0 1.0 -50.0%
Soto Sports Complex
Maintenance and Coordination Supervisor 0.0 0.0 1.0 1.0 1.0 100.0%
Maintenance Worker 2.0 2.0 1.0 1.0 1.0 -50.0%
Automotive Shop
Fleet Maintenance Coordinator 1.0 1.0 1.0 1.0 1.0 0.0%
Government Buildings
Building Maintenance Worker 1.0 1.0 1.0 1.0 1.0 0.0%
Part-Time Building Maintenance Worker 0.7 0.7 0.7 0.7 0.7 0.0%
Water Fund
Utilities Manager 0.5 0.5 0.5 0.5 0.5 0.0%
Public Works Supervisor 0.0 0.0 1.0 1.0 1.0 100.0%
Public Works Lead Worker 1.0 1.0 1.0 1.0 1.0 0.0%
Water Services Worker 1.0 1.0 1.0 0.6 0.6 -40.0%
Maintenance Worker 4.0 4.0 3.0 3.0 3.0 -25.0%
Part-Time Summer Interns 0.7 0.7 0.7 0.7 0.7 0.0%
Sewer Fund
Utilities Manager 0.5 0.5 0.5 0.5 0.5 0.0%
Water Services Worker 0.0 0.0 0.0 0.4 0.4 100.0%
Maintenance Worker 2.0 2.0 2.0 2.0 2.0 2.0%
Part-Time Summer Interns 0.7 0.7 0.7 0.7 0.7 0.0%
Total 25.5 25.5 27.8 30.8 30.8 20.8%
STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 15: As part of succession planning, remove the Assistant City Manager
responsibility from the Director position and officially designate the City Engineer as the
Department Assistant Director.
The Public Works Department is essentially the largest non-safety department in the City. It requires dedicated
leadership to ensure that the operations are efficient and effective, and consistent with the City Council and
community strategies and objectives. Having the director assume the role of Assistant City Manager takes time and
effort away from their leadership responsibilities as a department head, as indicated in Recommendation 1, it is
essential that the Assistant City Manager role be transferred to a full-time position in the CMO.
Currently, the department's staffing organization structure is developed where all division heads report to the
Director with no policy or guidance regarding who should be in charge if the Director is away or unavailable.
Although it is unofficially understood that the City Engineer is expected to be in charge when the Director is
unavailable, there is no official policy or clear communication to department staff that this is indeed the case.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 37
In addition, having an officially designated Assistant Department Director allows for succession planning within the
department to help prepare for a seamless transition when there is an opportunity for the department leadership
position. The City Engineer is the senior position in the department after the Director and has responsibilities that
cover all six divisions in the department. Therefore, it is the most logical position to be designated as the Assistant
Director in addition to their role as the City Engineer.
Recommendation 16: Restructure engineering resources to align with Council
infrastructure goals.
As previously indicated, the City Council has expressed its high-priority goal of infrastructure and resiliency to ensure
that the community’s needs for safety and improved infrastructure are expeditiously fulfilled. Progress for this goal
rests in effective planning and delivery of capital projects. The Engineering Division holds the primary responsibility
to implement the capital projects plan in a way that is consistent with the City’s desire and priority order. To
accomplish that, resources must be appropriately allocated to ensure adequate capacity for implementation . An
example of implementation success was the planning and design approach used by the City’s engineering team for
sidewalk replacement; it was thorough and included enhanced transparency and communication between the City
and community as the project was being implemented.
With the increase in size and scope of capital projects and to ensure that the same approach will be used in other
project implementations, additional resources will be required to complete design, issue contracts , and conduct
follow-up inspections as these projects are being implemented. Currently, the Engineering division has a vacant
assistant project manager position. This creates an opportunity to restructure this position to provide dedicated
capacity for full-time design and inspections of capital projects. This allows for other engineers within the division to
focus on design review and contract management to expedite implementation. In turn, this relieves the City Engineer
from project management and allows for more department and staffing management to ensure effective operations
and accountability for service delivery.
In addition, this added position will relieve the City Engineer and senior engineers from day -to-day field work and
allow them to focus more on strategic implementation of the capital projects plan. It also offers a career path for
entry-level staff to join the division and look forward to promotional opportunities. Based on Raftelis’ experience in
the engineering industry recruitment field, it is quite difficult to hire qualified senior -level engineers, and an entry-
level offers a startup opportunity and exposure to working with and learning from experienced staff within the
division.
There is not a material cost impact associated with the reclassification. The figure below shows the proposed new
organizational structure for the Administrative and Engineering Divisions in Public Works.
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38 CITY OF ARROYO GRANDE
City Engineer
1.0 FTE
Senior Engineer
1.0 FTE
Capital Project
Manager
1.0 FTE
Assistant Engineer
1.0 FTE
Utilities Manager
1.0 FTE
Administrative
Secretary
1.0 FTE
Public Works
Manager
1.0 FTE
Public Works
Director
1.0 FTE
Engineering
Engineering
Technician
(VACANT)
1.0 FTE
Figure 14: Proposed Public Works Organizational Structure, Administrative and Engineering
OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 17: Develop a formalized Asset Management Program.
One of the four Major City Goals set by the City Council during the FY2023-25 budget cycle was to “invest in and
complete critical infrastructure projects throughout the City through the strategic prioritization of projects based on
available resources.” Additionally, the Vision and Guiding Principles for the General Plan Update in clude
“Prioritizing infrastructure investments and maintenance of roads, public transportation, and community facilities
to support our community’s quality of life.17” This focus on infrastructure and capital improvement projects
emphasized the need for the City to adopt a formalized asset management program.
Effective asset management is vital for ensuring the sustainability and efficiency of a city’s critical infrastructure. In
simple terms, asset management involves evaluating the condition of assets and prioritizing both preventative and
reactive maintenance activities. The aim is to maximize the useful life of assets, reduce risks, and minimize costs. A
formal asset management program seeks to enhance the value and lifespan of assets through regular maintenance
and targeted capital investments.
When maintenance is deferred and resources are not allocated effectively, service levels can decrease, leading to
premature asset failure and reducing the effectiveness of infrastructure investments. By implementing well -defined
and efficient asset management practices, organizations can allocate their limited resources to the areas that need
them most, thereby improving day-to-day operations and informing long-term capital planning efforts.
17 “Vision and Guiding Principles,” Plan Arroyo Grande, August 2024 .
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 39
Asset management should be approached as a mindset or business practice in which a City’s infrastructure is viewed
in an asset-centric manner rather than an operations-centric one. This perspective enables organizations to allocate
limited resources more effectively and informs daily work planning as well as long-term capital improvements.
A formal asset management program involves conducting sufficient preventative maintenance and condition
assessments to ensure that assets are kept in a predictable and known condition. This program facilitates the timely
renewal and replacement of assets. If preventative maintenance is not performed regularly, the need for reactive or
corrective maintenance will increase, leading to equipment failures. As this cycle continues, the demand and costs
associated with reactive maintenance will outpace the ability to conduct preventative maintenance, resulting in a
self-reinforcing cycle that exacerbates the problem.
The City should establish a formal asset management program to improve the efficiency, sustainability, and cost -
effectiveness of the City's infrastructure maintenance and capital planning efforts. This program will enhance critical
asset tracking, maintenance, and replacement planning while aligning operational strategies with capital investment
priorities.
This can be done in the steps outlined below.
Step 1: Develop an asset inventory and perform condition assessments
A key initial step in developing this formal asset management program is completing an asset inventory and condition
assessment. The inventory should categorize all assets by the likelihood of an asset failure and the potential
consequences of failure. The likelihood of failure can be evaluated by considering the asset’s current condition and
performance. When considering the potential consequences of failure, the department should assess the potential
safety impact of failure, the potential environmental impact of failure, and the potential impact of failure on the
City’s ability to provide services.
Both risks of failure and the likelihood of failure should be quantified with an overall number between one and 10,
where one equals low risk/minimum consequences and 10 equals high risk/significant consequences. The two
numbers can then be multiplied to produce the asset’s overall risk factor. For example, if an asset has a low risk of
failure (three out of 10), but its failure would have a significant impact (eight out of 10), its overall risk factor would
be three multiplied by eight, or 24. Assigning a risk factor to each asset will allow the department to identify its
highest priorities for maintenance and repair. The department can also visualize its overall risk by plotting its assets
in a matrix like below.
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40 CITY OF ARROYO GRANDE
Figure 15: Risk/Consequence Matrix
The second step should be to develop a preventative maintenance schedule for each asset to maximize its useful life.
The schedules should be based on the needs and concerns identified in the condition assessments, manufacturer
recommendations, and industry best practices. The department should also evaluate the condition assessments to
project repair and replacement needs in the near future.
The department should regularly update its asset inventory. Staff should be instructed to track any changes to an
asset’s status to ensure the department maintains an accurate record of its current condition. Furthermore, the
comprehensive inventory should be reviewed annually and updated as needed.
Step 2: Develop an annual work planning process
Generally, work planning has five components:
1. Service Level Targets – The performance expectation of an activity tied to organizational goals
2. Tasks to be Accomplished – Specific tasks that need to be accomplished throughout the year
3. Schedule – The general timeline of when tasks need to be completed
4. Estimated Resources Required – The amount of staff time and other resources needed to accomplish each
specific task
5. Assigned Personnel – The specific position(s) who will accomplish the task
The department should establish service level targets based on the organization's goals and the specific maintenance
and operational needs of individual assets. For example, sewer mains need to be flushed regularly to prevent material
buildup and reduce the likelihood of stoppages. The frequency and resources devoted will depend on community
expectations or guidance from policymakers.
Maintenance and operational tasks should describe the specific assets that need to be maintained and the resources
needed. Documenting these tasks clarifies expectations for what it takes to provide the desired service level.
Using the list of maintenance and operational activities required to support desired service levels, the department
should develop a schedule for when tasks will occur. It is important to proactively schedule when preventative
maintenance will happen to balance workload throughout the year or to ensure tasks are being accomplished as other
service demands.
The department should also estimate the labor hours required to accomplish the tasks laid out in the department's
work plan. These estimates are critical to informing scheduling and allocating staff throughout the year. One of the
best ways to estimate future labor hour requirements is to measure how long staff takes to perform existing
assignments. This is best accomplished by implementing a work order system, as discussed in the next step.
Finally, the department should understand who will perform the assigned maintenance or operational tasks,
including whether contractors or seasonal staff will be necessary. Understanding the time commitment and
scheduling should inform who is responsible for maintenance tasks and what services should be performed by
contractors or seasonal staff. Assigning tasks as part of an annual work planning process can also help improve cross -
training, skill-building, and collaboration among crews.
Step 3: Implement a Computerized Maintenance Management System
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 41
The Public Works Department does not currently utilize a work order management system. Implementing one will
allow the department to document performance related to annual work plans and adjust them based on staff
performance. It will also enable the City to balance proactive maintenance activities with reactive, complaint-driven
work. Finally, tracking work orders, labor hours, and materials in a single system would improve the department’s
ability to collect performance data, track it over time, and report it.
The City should implement a Computerized Maintenance Management System. A CMMS is a software solution
that assists organizations in planning, monitoring, and reporting maintenance tasks and the condition of community
assets. It generates and tracks work orders and allows staff to schedule maintenance activities effectively.
A CMMS would better enable the City to monitor the completion of scheduled maintenance activities and balance
proactive maintenance with reactive and emergency work. It would also facilitate report generation, repair
scheduling, inventory forecasting, and determining when and what assets require maintenance. A CMMS would
also allow for regular, holistic analysis of the department’s workload and evaluation of whether service expectations
are met. With this information, department leadership would be better equipped to make future staffing decisions.
A CMMS would also help track task completion time and materials. This information is helpful to understand the
distribution of scheduled and reactive work completed by staff. It also enables the department to develop activity-
based accounting, which is useful when making service-level decisions or evaluating opportunities to contract
services. Finally, if a CMMS is integrated with the City’s GIS systems, it allows staff to map and associate tasks w ith
existing assets in the community.
Step 4: Incorporate asset management planning into the capital improvement process
Finally, asset management planning should be incorporated into the capital improvement process to ensure long-
term sustainability and proactive maintenance. The program should be modeled after successful initiatives, such as
the sidewalk improvement plan, using data-driven prioritization methods to:
• Assess asset conditions and identify maintenance and replacement needs
• Develop long-term investment strategies to balance short-term repairs with strategic replacements
• Prioritize projects based on risk, service level impacts, and available funding
A well-structured asset management program will strengthen the connection between capital investment planning
and operational budgeting. This integration will:
• Ensure that long-term maintenance costs are factored into capital decisions
• Align funding strategies to optimize asset performance and reduce deferred maintenance
• Provide transparency and accountability in infrastructure investment decisions
By implementing a structured asset management program, the City will improve service delivery, reduce unexpected
costs, and ensure the long-term sustainability of public infrastructure. This initiative will position the City of Arroyo
Grande to proactively manage assets, extend their useful life, and optimize financial resources.
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42 CITY OF ARROYO GRANDE
Recreation Services
The Recreation Services Department's purpose, according to the FY2023-25 Fiscal Year Budget, is “to provide
healthy, sustainable, and safe environments and offer quality recreation, leisure, and cultural activities for people of
all ages to play, learn, and build community. To foster human development and provide affordable health and
wellness opportunities while supporting economic development by strengthening community image and sense of
place.”15
The department is staffed with 5.9 FTEs, as shown in the figure below. The Recreation Specialist for Special Events
part-time position was added during the FY2024-25 mid-cycle budget update.
Recreation
Services Director
1.0 FTE
Program &
Volunteer
Coordinator
0.5 FTE
Recreation
Specialist
0.5 FTE
Class Instructors
Contract
Recreation
Supervisor, Special
Events
1.0 FTE
Volunteers
Volunteers
Senior Facility
Attendant
0.7 FTE
Facility Attendant
0.5 FTE
Recreation
Coordinator,
Sports/Facilities/
Admin
1.0 FTE
Sports Facility
Attendant
0.2 FTE
Facility Attendant
0.5 FTE
Figure 16: Recreation Services Organizational Structure, FY2024-25
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 43
CORE SERVICE MATRIX
The table below details an overview of the core services provided by staff for each program area; it is not meant to
be all-inclusive.
Table 18: Recreation Services Department Core Service Matrix
Division/Program Area Core Services
Recreation Administration
• Provide leadership and oversight for the Recreation Services Department
• Deliver high-level customer service to both internal and external stakeholders
• Represent the City in partnerships with non-profits and local businesses
• Administer the Tourism Business Improvement District
Facilities
• Provide and facilitate access to public facilities, including two community
centers, parks, Soto Sports Complex, Community Gardens, and tennis and
pickleball courts
• Coordinate public use requests and build relationships with external users
• Administer and collect facility use fees
Special Events
• Plan, develop, and deliver opportunities for community engagement, fun, and
celebration
• Collaborate with local agencies, non-profits, and businesses to enrich the
community
Volunteer Program
• Recruit, train, and oversee volunteers for events, special projects, and City
operations
• Build and maintain relationships with community groups and neighboring
agencies
Adult and Youth Sports
• Coordinate adult basketball and softball sports leagues for the community
• Coordinate the youth wrestling program
• Provide relevant active sports opportunities for adults and youth
Special Interest Classes
• Contract with instructors to offer exercise, art, and enrichment classes
• Partner with instructors and agencies to provide holiday and summer camps
for youth
STAFFING LEVEL HISTORY
Recreation Services Department staffing has decreased by 64% since FY2020-21. This decrease is almost entirely
due to the City’s transition of the before and after-school childcare activities to the YMCA, which took place in
FY2023-24. The department’s full staffing history from FY2020-21 is shown in the table below.
Table 19: Recreation Services Department Staffing History
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Recreation Director 1.0 1.0 1.0 1.0 1.0 0.0%
Recreation Supervisor 0.3 0.3 0.3 1.0 1.0 233.3%
Recreations Coordinator 0.4 0.4 0.4 1.0 1.0 150.0%
Office Assistant I 0.4 0.4 0.4 0.0 0.0 -100.0%
Administrative Secretary 0.6 0.6 0.6 0.0 0.0 -100.0%
Volunteer and Class Coordinator 0.5 0.5 0.5 0.5 0.5 0.0%
Facility Attendant 1.7 1.7 1.7 1.7 1.7 0.0%
Sports Facility Attendant 0.2 0.2 0.2 0.2 0.2 0.0%
Recreation Specialist 0.0 0.0 0.0 0.0 0.5 100.0%
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44 CITY OF ARROYO GRANDE
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Recreation Supervisor - Preschool 0.2 0.2 0.2 0.0 0.0 -100.0%
Preschool Teacher 1.7 1.7 1.7 0.0 0.0 -100.0%
Recreation Supervisor - Children in Motion 0.5 0.5 0.5 0.0 0.0 -100.0%
Recreation Coordinator - Children in Motion 0.6 0.6 0.6 0.0 0.0 -100.0%
Teacher - Children in Motion 3.5 3.5 3.5 0.0 0.0 -100.0%
Assistant Teacher - Children in Motion 1.2 1.2 1.2 0.0 0.0 -100.0%
Assistant I and II - Children in Motion 2.2 2.2 2.2 0.0 0.0 -100.0%
Total 15.0 15.0 15.0 5.4 5.9 -60.7%
STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 18: Transition the Tourism Business Improvement District (TBID)
responsibilities to the Economic Development Program.
The Recreation Services Director and part-time Recreation Specialist position support the activities and requirements
for the City’s TBID. Looking ahead, TBID aligns with the broader Citywide focus on economic development and
vitality. Recommendation 4 provides additional detail regarding a proactive economic development program and
TBID’s role.
This recommendation impacts the staffing composition and core services for the Recreation Services Department.
The proposed reclassification of the part-time Recreation Specialist position reduces overall staffing levels; however,
as part of workload assessment and review, this position spent nearly all its time on TBID-related activities. In
addition, TBID’s responsibilities also fell to the Director. Removing this program from Recreation Services should
ultimately provide enhanced capacity for the Director to provide strategic oversight for the department’s two core
functions: recreation programming and special events. The proposed new organizational structure for the Recreation
Services Department is shown in the figure below.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 45
Figure 17: Proposed Recreation Services Department Organizational Structure
OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 19: Establish a framework to evaluate special events programming.
Currently, the Recreation Services Department provides staff and financial support for numerous community
programs and special events. Examples include Mother’s Day Tea, Father’s Day Dance, Meet the Machines, and
more. These events are well-received and serve to provide a sense of community, bringing residents and visitors into
the City and, hopefully, supporting local businesses while there.
However, special events – like sunny days – are rarely ill received; the community will happily partake in as many
events as offered. Staff shared that the department has a relatively informal process for evaluating the continuation
or creation of events, and that some local events have shifted under the department’s purview in recent years. The
department operates with a lean, dedicated staff who are willing to go the extra mile and endeavor to make informed
decisions about programming. However, interviews indicated that there is somewhat limited bandwidth for strategic
priorities, like strengthening sponsorship solicitation materials, and that there could be a risk of staff burnout or
diminished service delivery if the events calendar becomes overprogrammed.
To ensure the most efficient use of limited staff resources, the City should develop guidelines and work with City
leadership to develop a framework used to evaluate special events each year. The development process could include
identifying relevant metrics18 for event types, such as learning opportunities at Meet the Machines or cost recovery
at the Mother’s Day Tea. Based upon the developed framework, Recreation Services staff can focus upon a limited
number of well-planned events and reserve some staff capacity for other important tasks.
A potential framework might include ranking events for:
18 “Best Practices for Evaluating Event Success.” Eventmobi, https://www.eventmobi.com/blog/best-practices-for-
evaluating-event-success/.
Recreation
Services Director
1.0 FTE
Program &
Volunteer
Coordinator
0.5 FTE
Class Instructors
Contract
Recreation
Supervisor, Special
Events
1.0 FTE
Volunteers
Volunteers
Senior Facility
Attendant
0.7 FTE
Facility Attendant
0.5 FTE
Recreation
Coordinator,
Sports/Facilities/
Admin
1.0 FTE
Sports Facility
Attendant
0.2 FTE
Facility Attendant
0.5 FTE
Recreation
Specialist
(VACANT)
0.5 FTE
Reclassified as
Economic
Development
Coordinator
Special Events Recreation Services
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46 CITY OF ARROYO GRANDE
• Numbers of residents or participants served or of local partners engaged
• Economic impact on local businesses
• Availability and access to lower socio-economic groups
• Cost recovery
• Staff and budgetary resources necessary for planning, execution, and any follow-up
• Redundancy or similarity to other existing community or regional events
Determinations regarding the balance of cost recovery to community benefit can be informed by the “Cost Recovery
Pyramid”19 below.
Figure 18: Cost Recovery Pyramid
If desired, a subcommittee of Recreation Services and internal services staff can perform the ranking and present
results to City leadership for discussion and approval. The evaluation process should be timed to inform budget
development, but the framework can detail any priorities that would justify adding new events during the fiscal year.
If an existing or new event does not align with the City’s framework, then the department can use the opportunity to
evaluate the event and communicate the reasoning behind the resulting decision with the full team. Some questions
that can inform the process include:
• What staffing and materials are needed, and from which sources, to successfully prepare, execute, and wrap
up the event?
o Resources that are free or already budgeted should also be captured, as their use impacts availability
for other events/programming
o Consider: can community volunteers or partners support or even manage the event?
• What is the anticipated or demonstrated audience for the event?
• How does the event advance the City’s strategic plan objectives?
• How does the event support the department’s cost recovery goals?
19 Brandenburger, Alaina, “The Cost Recovery Pyramid: Methodology that Works,” The Leading Edge Newsletter:
Winter/Spring 2014, GreenPlay LLC.
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 47
• Does the addition or continuation of the event inhibit the department’s ability to pursue higher-priority
opportunities?
A formalized process can also help ensure that programming aligns with the City’s identified priorities. For example,
events offer opportunities for requesting sponsorships from and/or driving customers to local businesses, which can
support economic development. However, it can often be assumed that the opportunities can be accessed with
simple, low-lift outreach while thoughtful planning and strategic communications are actually required.20 The new
framework can inform these kinds of decisions and maximize the City’s investments in staff and financial resources.
20 “Mastering downtown event evaluation.” Wisconsin Economic Development Center, https://wedc.org/mastering-
downtown-event-evaluation/.
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48 CITY OF ARROYO GRANDE
Conclusion
The City of Arroyo Grande has transformed from agrarian roots to a full-service City. This growth required the
effective allocation of limited resources to meet community needs. Looking ahead, the City Council has set clear
goals designed to achieve economic vitality and sustainability through thoughtful development and organizational
effectiveness. The recommendations outlined in this operational and organizational assessment are intended to
strengthen the organization by identifying the resources and opportunities to best position the City for long-term
success.
In particular, the staffing and structural recommendations identify the necessary staffing levels across departments
and programs that support service delivery expectations. Where appropriate, they reflect full-time positions to
recognize where the current or projected workload demand supports such needs. The implementation of these
recommendations will need to consider the City’s ability to support new positions with ongoing revenue and the
timing of specific staffing changes or composition. For example, the City has actively begun succession planning for
multiple leadership positions. Some recommendations may be best supported as part of the transition process .
Ultimately, it is up to the City to determine the prioritization and timing of each recommendation.
The table below summarizes recommended staffing changes, including estimated fiscal impact. It is followed by a
proposed Citywide organizational chart reflecting the recommendations contained in this report.
Table 20: Summary of Recommended Staffing Increases
New Position Job Title / Role FTE
Increase
Estimated
Cost Priority
Assistant City Manager 1.00 $262,600 Short-term
Economic Development Coordinator (Reclass vacant PT to FT) 0.50 $110,500 Short-Term
Community Development Office Assistant (PT to FT) 0.50 $43,400 Short-term
Central Reception Administrative Support 1.00 $100,100 Short-term
HR Specialist (PT to FT) 0.50 $63,300 Short-term
Finance Senior Accounting Clerk 1.00 $105,900 Long-term
IT Specialist / Customer Service Support TBD TBD Long-term
4.50 $685,700
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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 49
City Manager
1.0 FTE
Legislative and
Info Services
2.6 FTE
Public Works
30.8 FTE
Administrative
Services
8.0 FTE
Community
Development
8.0 FTE
Police
31.5 FTE
Recreation
Services
5.4 FTE
City Attorney
(Contracted)
Human
Resources
2.0 FTE
Management
Analyst
1.0 FTE
Internal Services Operations
Assistant City Manager
1.0 FTE
Economic
Development
Coordinator
1.0 FTE
Executive Secretary
Central Reception
1.0 FTE
Public Safety
Five Cities Fire
Authority
(JPA)
Figure 19: Proposed Citywide Organizational Chart
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