CC 2013-03-12_11.a. Fiscal Year 2012-13 Mid-Year Budget Status ReportMEMORANDUM
TO: CITY COUNCIL
FROM: RYAN CORNELL, INTERIM DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF FISCAL YEAR 2012-13 MID-YEAR BUDGET
REPORT
DATE: MARCH 12, 2013
RECOMMENDATION:
It is recommended the City Council:
• Approve detailed budget adjustments listed in the Mid-Year budget report;
• Approve Schedule A;
• Approve (Deny) requests for additional appropriations in the General Fund; and
• Approve joining the National League of Cities.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The General Fund ending balance will be impacted by the approval of the recommended
revenue and appropriation adjustments as follows:
Current Projected Fund Balance $ 2,634,568
Net increase in revenue $ 370,000
Net decrease in transfers in (100,000)
Net increase in expenditures (190,000)
Projected Fund Balance at 6/30/2013 $ 2,714,568
The recommended budget adjustments are anticipated to have a minimal impact on staff
workload.
BACKGROUND:
Each year, the City Council adopts a budget, which commits resources to the
accomplishment of its policies. The Administrative Services Department routinely prepares
quarterly budget updates for the City Council.
The purpose of the City's Mid-Year Budget Report is to:
• Compare revenues received and expenditures made to budgeted amounts to determine
appropriate adjustments.
Item 11.a. - Page 1
CONSIDERATION OF MID YEAR BUDGET REPORT
MARCH 12, 2013
PAGE2
• Report on Departmental accomplishments.
• Provide a link between the City budget, the financial records, and the independent
financial audit.
• Compare current revenues and expenditures against the prior fiscal year.
ANALYSIS OF ISSUES:
• The total Citywide Fund balance reported at June 30, 2012 was $28.4 million. This is a
decrease of approximately $4.8 million compared to June 30, 2011. The decrease is
primarily due to the dissolution of the Arroyo Grande Redevelopment Agency.
• The totalGeneral Fund balance reported at June 30, 2012 was $3.3 million, which was
an increase of $189,164 from the prior year and was 26% of General Fund expenditures
at year-end. The audited Fund Balances reported in the Comprehensive Anni.Jal
Financial Report (CAFR) have been incorporated into the beginning fund balances on
Schedule A. There are two adjustments to the beginning fund balances that are different
from the CAFR. The adjustment was to subtract the Fixed Asset balance of $9,816,684
from the Water Fund in order to reflect a more accurate expendable fund balance. There
is also an adjustment of $740,695 from the debt service funds because those fund
balances are restricted by debt covenants.
• The current projected available General Fund Balance for June 30, 2013 is $2,714,568, a
decrease of $525,286 from the June 30, 2012 fund balance. This fund balance is
projected to be 20% of appropriations, which meets the City Council fund balance goal of
20% and exceeds the minimum fund balance policy amount of 15%.
• As part of the Mid-Year process, staff is asked to review their current budgets and
determine if any adjustments are required. General Fund recommendations result in the
following: a net increase in appropriations of $190,000; a decrease of $100,000 in
transfers in and a net increase of $370,000 in revenue.
• Additional increases in revenues are requested in the Park Development Fund ($25,000),
Park Improvement Fund ($7,250 net), Traffic Signal Fund ($46,250), Transportation
Facility Impact Fund ($125,000), and In-Lieu Affordable Housing Fund ($25,000).
Detailed descriptions of these requests are included in the Mid-Year Report and shown
on Schedule A.
• The City currently owes the California Joint Powers Insurance Authority $775,013 in
retrospective balances for Workers' Compensation and Liability coverage. This is an
increase of $336,083 over what was originally projected. There is $75,000 budgeted this
fiscal year to pay towards this debt. Staff recommends appropriating an additional
$190,000 in one-time funds that have been received from a settlement from San Luis
Obispo County and $300,000 in one-time excess reserve funds from claims remaining
when the City participated in the Central Coast Cities Self Insurance Fund. This will
reduce the balance to $210,013. Staff hopes to pay down the remaining liability if there
are year-end savings in order to reduce additional impacts on the ability to balance next
year's budget.
Item 11.a. - Page 2
CONSIDERATION OF MID YEAR BUDGET REPORT
MARCH 12, 2013
PAGE3
• The Mayor has requested the Council consider joining the National League of Cities. The
total cost is $1,489, which can be funded from existing savings in the City Council's
account. Therefore, no appropriation is necessary, but Council's authorization is needed
to proceed.
Management Reporting System Status Report
The Management Reporting System Status Report on departmental accomplishments and
key issues in progress is presented as a separate section at the end of this report. Each
department/division reports the work accomplished during the first half of the fiscal year
toward established department goals. The progress toward those ongoing projects/work
efforts that will continue into the remaining quarters is also reported.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve Schedule A included in the Mid-Year Budget Report;
2. Do not approve recommended budget adjustments and propose reductions to balance
the budget and/or increase General Fund reserve;
3. Provide direction to staff.
ADVANTAGES:
The Mid-Year Budget Report maintains an updated review of the City finances in the existing
fiscal year, allocates additional funding to meet current needs and complete projects, and
maintains a fund balance that exceeds the City's minimum reserve policy amount.
DISADVANTAGES:
Based on the recommendations, departmental budgets will continue to be constrained and
will continue to present a challenge to maintain current service levels. Based on the Mid-
Year Budget Report, it is also still projected that the City will utilize more reserves than
desired.
ENVIROMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, March 7, 2013. The Agenda
and report were posted on the City's website on Friday, March 8, 2013. No public
comments were received.
Attachment(s):
• Mid Year Budget Report
Item 11.a. - Page 3
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
City of
Arroyo Grande
Administrative Services Department
MID-YEAR BUDGET REPORT
1
Item 11.a. - Page 4
City of Arroyo Grande
Mid-Year Budget Report -2012/13
FISCAL YEAR 2012-2013
Table of Contents
March 12, 2013
Overview .............................................................................................................................................................................................. 3
Summary of Key Points ...................................................................................................................................................................... 3
Mid Year Budget Requests ................................................................................................................................................................ 4
General Fund Overview ..................................................................................................................................................................... 7
General Fund Revenues ..................................................................................................................................................... , ............... 8
General Fund Expenditures ............................................................................................................................................................ 10
Overtime Summary .......................................................................................................................................................................... 12
Other Funds ....................................................................................................................................................................................... 13
Schedules:
A-Unreserved Fund Balance Control-All Funds ................................................................... : ....................................... 15
General Fund-Fund Summary ......................................................................................................................................... 17
Management Reporting System ...................................................................................................................................................... 18
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Item 11.a. - Page 5
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
Overview
The City's Mid-Year Report is prepared to compare the revenues and expenditures occurring during the first six months
of the fiscal year against budgeted amounts to determine appropriate adjustments; to report on departmental
accomplishments; to provide links between the City budget, the financial records, and the independent financial audit;
and to compare revenues earned and expenses made during the first six months of the 2012-13 fiscal year against the
2011-12 fiscal ye·ar figures. This information is provided in the following format:
Schedule A: The starting point is the audited 2011-12 fiscal year ending fund balances, which is also the beginning
Unreserved Fund Balances for the 2012-13 fiscal year. Combining the beginning Unreserved Fund Balances with
the estimated revenues, transfers, and appropriations adopted in the Annual Budget and the 1st Quarter Report,
provides the estimated fund balances.
As a result of a comprehensive review, adjustments are recommended where actual receipts and disbursements are
materially different from the budgeted amounts. Although budget adjustments are recommended across several City
funds, the emphasis of the Mid-Year Budget Report continues to be directed at the General Fund. The General Fund is
deemed to be the most critical as it provides most services commonly associated with government (public safety,
recreation, parks, building, public works and planning) and is limited primarily to tax-generated revenues.
Summary of Key Points
• The total Citywide Fund Balance reported at June 30, 2012 was $28.4 million. This is a decrease of approximately $4.8
million compared to June 30, 2011. Approximately 60% of this decrease is due to the dissolution of the redevelopment
agency and is discussed in further detail later in the report. The beginning General Fund balance is $3.3 million,
which was an increase of $189,164 from the prior year and was 26% of General Fund expenditures at year-end. The
audited Fund Balances reported in the Comprehensive Annual Financial Report (CAFR) have been incorporated into
the beginning fund balances on Schedule A. There are a couple of adjustments to the beginning fund balances that are
different from the CAFR. There is an adjustment to subtract the fixed asset balance of $9,816,684 from the Water Fund
in order to reflect a more accurate expendable fund balance and $740,695 from the debt service funds because those
fund balances are restricted by debt covenants.
3
Item 11.a. - Page 6
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
• The City Council has established an Undesignated General Fund Balance goal of 20% of annual appropriation with a
minimum goal of 15%. The City's Undesignated General Fund Balance represents the available resources to provide
funding for future contingencies such as earthquakes, civil unrest, economic fluctuations, major infrastructure repairs
and investment in capital for improved productivity and efficiencies. Inadequate reserves increase financial risk,
negatively impact cash flow, and reduce the City's ability to attract and sustain economic development and growth
within the City of Arroyo Grande.
The current projected available General Fund Balance for June 30, 2013 is $2.7 million, an increase of $155,811 from the
projected fund balance of $2.6 million published in the FY 2012-13 1st Quarter Budget Update Report. This fund balance
is projected to be 20% of appropriations, which is above the City Council fund balance goal of 15%. The increase in the
projected fund balance is due to higher than expected revenues in the current year. However, a decrease of $525,286 in
the General Fund balance is still projected for this fiscal year. Of this, $450,000 in use of reserves was projected when
budget revisions were approved during the 1st Quarter Budget Status Report. The remainder is primarily due to
projected savings from labor negotiations that have not yet been achieved. The projected Fund Balance assumes revenues
are received exactly as budgeted, all budget expenditures are made, and all capital transfers required by the CIP
Program are completed. Historically, the General Fund has not been required to fund all budgeted capital transfers
and expenditures at year-end are traditionally less than budgeted.
• The Management Reporting System Status Report is presented as a separate section at the end of this report. This
provides a summary of what individual departments have accomplished during the year. Also reported are the key
issues and work efforts in progress that will continue into the remaining quarters.
Mid Year Budget Requests
As part of the mid-year process, departments are normally asked to review their current budgets and determine if any
adjustments should be proposed in this report. Departments have been asked to closely monitor their budgets and spend
only what is absolutely necessary. At this time, staff is only recommending minor adjustments to the General Fund
Departmental budgets.
4
Item 11.a. - Page 7
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
General Fund Expenditures:
• Non-Departmental -During the fiscal year 2012-13 budget update report presented on June 26, 2012, Council
approved $75,000 to pay towards the $438,930 owed in retrospective costs related to the liability and workers
compensation insurance program with California JPIA. In October 2012, the amount owed increased by $336,083 for a
new total of $775,013. At this time, staff is recommending an additional appropriation of $190,000 be paid towards
this cost. As discussed below, staff is recommending this additional appropriation be funded by a refund the City will
be receiving from the County. It is also recommended the Council approve transferring $300,000 in funds remaining
in an account reserved for claims when the City was a member of the Central Coast Cities Self Insurance Fund
(CCCSIF) that have been determined no longer necessary. This will reduce the total debt to $210,013.
General Fund Revenues:
• Operating Transfers -Staff is requesting a decrease of $100,000 in this revenue source. The Successor Agency of the
Dissolved Redevelopment Agency of Arroyo Grande is eligible to receive an administrative cost allowance each year.
The amount initially projected was $250,000, of which, $200,000 would be transferred to the City's General Fund to
cover City-related personnel costs, with the remaining $50,000 to cover audit, legal, and other related costs. However,
due to the State Assembly Bill 1484 "True-up Payment," the administrative cost allowance was decreased to $125,000.
Projections to legal and audit fees have decreased, leaving approximately $100,000 available to be transferred to the
General Fund.
• Property Tax -During the fiscal years 2008-09 through 2011-12, the County's property tax administration fees were
erroneously calculated. As a result of a court decision, the County is required to refund the City in the amount of
$190,000. Because the County has acknowledged that the amount will be remitted in March 2013, staff is
recommending an increase of $190,000 in this revenue fund and it be appropriated for the retrospective costs related to
the liability and workers compensation insurance program with California JPIA, as mentioned above.
• Transient Occupancy Tax -With the addition of a new hotel established for an entire year, revenues are projected to
be higher than originally estimated. Staff is requesting an increase of $100,000 in this revenue source.
• Sales and Use Tax -Based on projections from the City's sales tax consultant, sales tax revenues are expected to be
higher than initially estimated. Staff is requesting an increase of $50,000 in this revenue source.
5
Item 11.a. - Page 8
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
• Franchise Fees -In the previous fiscal year, actual revenues were over (favorably) by $30,172 when compared to
the budgeted amount. The current year budget amount is the same as the prior year and revenues are projected to
remain constant. As a result, staff is requesting an increase of $30,000 in this revenue source.
Other Funds:
Park Development Fund:
Staff is requesting an increase of $25,000 in park development fee revenues to better reflect the actual amounts received
to-date.
Park Improvement Fund:
Staff is requesting an increase of $10,000 in park improvement impact fee revenues to better reflect the actual amounts
received to-date. In addition, staff is recommending an additional appropriation of $2,750 to fund the Central Irrigation
Capital Improvement Project. On November 26, 2012, the Council approved decreasing the funding for this project by
$44,200. Overall, the project is still well below the originally adopted budget. However, staff's recommendation to lower
the project's funding was over-estimated.
Traffic Signal Fund:
Staff is requesting an increase of $46,250 in traffic signal assessment fee revenues to better reflect actual amounts received
to-date.
Transportation Facility Impact Fund:
Staff is requesting an increase of $125,000 in facility impact fee revenues to better reflect the actual amounts received to-
date.
In-Lieu Affordable Housing Fund:
Staff is requesting an increase of $25,000 in in-lieu fee revenues to better reflect the actual amounts received to-date.
6
Item 11.a. - Page 9
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
Capital Improvement Program Fund (CIP):
On November 26, 2012, the Council approved a decrease of $44,200 in the Central Irrigation Project and to reallocate
funding to the replacement lighting project at the lower basin at the Soto Field Sports Complex. This original decrease
was overestimated and staff is recommending an additional appropriation of $2,750 and to be funded by the Park
Improvement Fund.
General Fund Overview
Shown below is an overview of the revenues, expenses, and transfers for Fiscal Years 2011-12 and 2012-13. Comparing
the two fiscal years in this summary format readily shows the impact of both increases and decreases in revenues and
expenditures. Revenues have decreased by $40,840 and expenditures decreased by $176,508 when comparing the two
fiscal years.
General Fund
Revenues:
Mid-Year Actual
Mid-Year Transfers
Total
Expenditures:
Mid-Year Actual
Total
Impact on Fund Balance
FY 2011-12
$ 3,967,129
1,165,641
5,132,770
6,787,576
6,787,576
$ (1.654.806)
7
FY 2012-13
$ 4,149,681
942,249
5,091,930
6,611,068
6,611,068
$ (1.519.138)
Variance
$ 182,552
(223,392)
(40,840)
(176,508)
(176,508)
$ 135.668
Item 11.a. - Page 10
City of Arroyo Grande
Mid-Year Budget Report -2012/13
Shown here is a graphic representation of the 2012-13 fiscal
year revenues and expenditures to-date, compared with the
amended budget including the recommended mid-year
adjustments. Transfers in and transfers out are included in
this graph to represent the total impact on the fund balance.
General Fund Budget & Actual
As of December 31, 2012
Budget Actual
Revenue/Transfers $ 13,163,846
13,533,086
207,623
$ 5,091,930
Operations
Equipment Purchases
Total Expenditures 13,740,709
6,580,973
30,095
6,611,068
Change in Fund Balance $ (576.863) $ (1.519.138)
14
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Revenues Expenditures
• . Budget . Actual
After mid-year adjustments are recorded, the June 30, 2013 fund balance in the General Fund will be approximately $2.7
million, if all budget projections are fulfilled. However, at June 30, 2013, the City may find that revenues have not met
the budgeted projections and not all budgeted appropriations will be spent as year-end actual expenditures are
traditionally less than budgeted amounts (i.e. FY 2011-12-$567,336 less, FY 2010-11-$114,501 more, FY 2009-10-$1,596,673
less, FY 2008-09-$547,717 less, FY 2007-08-$737,598 less).
General Fund Revenues
With half of the year complete, the total General Fund revenue is at 39% of budget. This is below 50% for several reasons:
the mid-year revenue only includes four months of Sales Tax revenue, Transient Occupancy Tax (TOT) revenue is for five
months, Franchise Fee revenue only includes four months of revenue, and lastly, the first half of the triple flip amounts
for sales tax $393,377 and VLF $607,249 were not received until January.
8
Item 11.a. - Page 11
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
The table shown below presents a comparison of the top ten revenue accounts which represents approximately 76% of the
total General Fund revenues and transfers. Changes to these revenue accounts can have profound impacts.
Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year Actual
Revenue Descri2tion Budget Actual % Budget Actual % Change
Property Tax $ 3,663,800 $ 2,020,857 55% $ 3,534,000 $ 2,057,319 58% $ (36,462)
Sales & Use Tax 2,326,000 796,183 34% 2,210,000 777,980 35% 18,203
Triple Flip -VLF 1,214,500 0% 1,208,932 0%
Triple Flip -Sales Tax 787,000 0% 756,041 0%
Transient Occupancy Tax 650,000 317,619 49% 530,000 241,816 46% 75,803
Franchise Fees 570,000 123,118 22% 540,000 118,522 22% 4,596
Children in Motion 235,000 137,698 59% 235,000 113,877 48% 23,821
Telecommunication Leases 204,000 91,037 45% 182,000 88,830 49% 2,207
Sales Tax -Safety 110,000 49,328 45% 110,000 44,260 40% 5,068
Building Permits 101,000 80J18 79% 101,000 50,198 50% 29,920
Total $ 9,861,300 $ 3,615!958 37% $ 9,406,973 $ 3!492,802 37% $ 123.156
• Property Tax -During the fiscal year 2012-13 budget update report, Council approved to decrease this revenue source
due to the combination of the dissolution of the Arroyo Grande Redevelopment Agency and the reduction in assessed
property values. This decrease is consistent with the actual change presented above. However, the overall budget
amount has been increased to account for the $190,000 refund the City is expecting from the County.
• Sales Tax -Sales tax is higher than in the prior year due to an increase in sales tax activity; however, the budget
reflects this anticipated increase.
• Transient Occupancy Tax -This revenue is showing an increase of $75,803 when compared to the prior year. Staff is
requesting an increase in this line item of $100,000 and will continue to monitor this revenue source to determine if
additional increases should be requested in the 3rd Quarter.
9
Item 11.a. - Page 12
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
• Children in Motion -This revenue is showing an increase of $23,821 when compared to the prior year. However, no
adjustment to this revenue source is being requested at this time. Staff will continue to monitor both the revenues
and expenditures for this program and requests will be made during the 3rd Quarter Budget Report, if necessary.
• Building Permits -This revenue is showing an increase of $29,920 when compared to the prior year. Although it is
expected that this revenue source will be over budget by the end of the year, staff is not requesting any adjustment. It
is expected that there will be unfavorable variances in other General Fund revenue accounts that will offset this
projected increase. Additional adjustments will be requested at the 3rd Quarter Budget Report, if necessary.
• All other variances are within normal ranges.
General Fund Expenditures
All departmental expenses are under the 50% budget mark (with the exception of the Non-departmental division) with
total Fiscal Year 2012-13 expenses at 49% of budget. Individual department/ division differences between the current and
prior fiscal year are highlighted in the table shown on the following page. This fiscal year, there is a $257,903 decrease in
General Fund expenditures over the previous fiscal year.
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Item 11.a. - Page 13
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year Actual
De12artment Budget Actual % Budget Actual % Change
City Manager $ 384,559 $ 166,954 43% $ 390,720 $ 166,558 43% $ 396
Legislative & Info. Services 340,440 160,624 47% 358,810 145,056 40% 15,568
Retirees 199,000 61,282 31% 119,000 54,725 46% 6,557
City Attorney 220,250 97,143 44% 243,250 116,966 48% (19,823)
Administrative Services 733,935 362,529 49% 715,920 350,685 49% 11,844
Community Development 578,765 252,598 44% 497,328 227,671 46% 24,927
Information Technology 259,445 107,254 41% 287,030 127,117 44% (19,863)
Non-Departmental 2,257,001 1,612,977 71% 2,236,050 1,675,781 75% (62,804)
Police 5,708,938 2,541,026 45% 5,879,130 2,730,006 46% (188,980)
Building & Life Safety 234,342 104,812 45% 230,590 95,116 41% 9,696
Engineering 321,849 138,688 43% 317,150 132,136 42% 6,552
Recreation Services 752,015 356,130 47% 734,650 330,814 45% 25,316
Public Works 1A25,266 618,952 43% 1A02,345 634,802 45% (15,850)
Total $ 13,415,805 $ 6,580,969 49% $ 13,411,973 $ 6?87.433 51% $ (206.464)
• Legislative & Information Services -During the fiscal year 2012-13 budget update report, Council approved to increase
appropriations to account for cable casting expense. Of the total $15,568 increase in expenditures when compared to prior
year, 78% represents this cable casting expense. All other variances in this division are within a normal range.
• City Attorney -Ongoing personnel litigation is continuing to be settled, as it did from fiscal year 2011-12 compared to
fiscal year 2010-11. This decrease was anticipated and is reflected in the budget.
• Community Development -Due to the dissolution of the Arroyo Grande Redevelopment Agency, the City was
required to move salaries that were originally charged to the Redevelopment Agency to the General Fund. This
increase was anticipated and is reflected in the budget.
• Information Technology -Decrease in contractual services represents a majority of this decrease. Consulting services
on project maintenance and administrative workload was anticipated to decrease and is reflected in the budget.
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Item 11.a. - Page 14
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
• Non-Departmental -Although the actual decrease from one fiscal year to the next is significant, the percent decrease
is only 4%. This is mainly due to the anticipated $70,000 decrease for the City's portion of fire services to the Five
Cities Fire Authority (FCFA), which was the result of reserves from the FCFA used in this year's budget.
• Police -There was a combination of reasons why the police department's actual expenditures are lower than at this
time last year. Approximately $100,000 of the decrease is due to personnel costs. During the 1st Quarter Budget
Update Report, Council approved to hold one Police Sergeant position vacant. The other significant decrease of
approximately $60,000 in costs was due to the police fleet lease expiring in the later part of the fiscal year 2012. The
department is currently replenishing their fleet with a lease agreement and this expenditure item is expected to
increase in March 2013.
• Recreation Services and Public Works -Due to the reorganization at the corporation yard and the segregation of
recreation services and maintenance services (i.e. public works), this created some variances between divisions. This
variance was anticipated and is reflected in the budget.
• All other variances are within a normal range.
OVERTIME SUMMARY
Below is the City-wide overtime summary for the first half the fiscal year with comparison to this time last year. As shown
below, there has been an increase of $3 ,222 or a 3 % in overtime costs from this time last year.
Current Prior
Year Year
De2artment Jul Aug Se2 Oct Nov Dec Total Total
Police $ 19,675 $ 18,193 $ 16,704 $ 22,772 $ 29,208 $ 14,411 $ 120,963 $ 110,028
Recreation 23 561 197 781
Public Works 11279 21294 320 31056 11925 11227 lOJOl 181595
Total $ 20,954 $ 20,510 $ 17,024 $ 25,828 $ 31,694 $ 15,835 $ 131.845 $ 128,623
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Item 11.a. - Page 15
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
OTHER FUNDS
Local Use Tax Fund (Fund 218)
This fund has been established to account for the 1 /2 cent sales tax increase that was approved in November 2006. With
four months of sales, this revenue source is at 34% of budget. The estimated fund balance at the end of the fiscal year is
projected to be $241,318, which is 8% of appropriations if all budgeted funds are expended. However, staff believes the
fund balance will remain above 15% when factoring project savings and project delays.
Successor Agency of the Dissolved Arroyo Grande Redevelopment Agency (Fund 286)
On December 29, 2011, the California Supreme Court upheld the validity of AB 1X26, the bill that dissolved all
Redevelopment agencies in the State. Effective February 1, 2012, the City's Redevelopment Agency (RDA) ceased to exist.
As a result of this dissolution, all assets of the former RDA were transferred to the Successor Agency. Previously, the
RDA was considered a component unit of the City and reported its fund balance in the City's financial statements. This is
no longer valid and the City can no longer include the RDA's fund balance. This exclusion was approximately $3.3
million and represented over half of the overall decrease in the City-wide fund balance.
Capital Improvement Program Fund (Fund 350)
The procedures of the CIP require that revenues equal expenses in this fund, which means the fund does not typically
have a fund balance at year-end. If additional expenses are encountered in completing a project, funding must be found
to match the expenses. In reverse, when additional revenues are found, the scope of the project can be expanded,
previous funding returned to other funds, or revenues returned to the source.
Water Fund (Fund 640)
The Water Fund is projected to have an expendable fund balance of approximately $1,624,588 at June 30, 2013. There are
several large water projects currently budgeted in the Water Fund, such as the construction of Alpine Street Waterline
improvements ($150,000), construction of Reservoir No. 6 & No. 7 ($475,000) and waterline upgrades on Fair Oaks at
Halcyon and on Faeh at Bell ($500,000). However, some of these projects are being reduced as a result of the Water
Master Plan and overall capital expenditures.
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Item 11.a. - Page 16
City of Arroyo Grande
Mid-Year Budget Report -2012/13 March 12, 2013
Attachments
A brief overview of the attached schedules is provided to inform the reader of the purpose of each schedule.
• Schedule A -Fund Balance. This schedule is provided to incorporate prior year fund balance into the current year
and to summarize the 2012/13 budget adopted by the City Council. This schedule includes adjustments that were
incorporated in the 1st Quarter report and lists the current requested adjustments in total.
• Management Reporting System Status Report. This provides a look at what the individual departments and divisions
have accomplished during the first half of the fiscal year. Also reported are the key issues and work efforts in progress
that will continue into the remaining quarters.
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Item 11.a. - Page 17
City of Arroyo Grande
Fund Balance -Control
All Funds Operating Budget
2012/13 Adopted Budget
Schedule A
Actual Estimated
Total Total
Unreserved Unreserved
Fund Balance Original Adjustment Operating Operating FY 2011-12 Budgeted Adjustments to Fund Balance
July 1, 2012 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2013
General Fund
010 General Fund: $3,305,853 $10,816,920 $348,004 $1,984,500 $0 $65,999 $13,840,575 ($165,865) $2,714,568
S12ecial Revenue Funds:
210 Fire Protection Impact Fees $67,035 $16,150 $0 $0 $0 $0 $0 $0 $83,185
211 Public Access Television 75,938 38,500 0 0 0 0 36,000 0 78,438
212 Police Protection Impact Fees 67,301 1,300 0 0 0 0 0 0 68,601
213 Park Development Fees 651,558 29,000 25,000 0 199,471 0 0 0 506,087
214 Park Improvement Fees 356,862 17,000 10,000 0 376,440 0 0 0 7,422
215 Recreation Community Center 46,984 1,500 0 0 15,000 0 0 0 33,484
216 Grace Lane Assessment District 52,334 9,700 618 0 0 0 5,000 1,820 55,832
217 Landscape Maintenance District 23,670 6,000 0 0 3,300 0 2,600 11,260 12,510
218 Local Use Tax Fund 1,736,688 1,669,100 227,725 0 3,182,267 0 134,163 75,765 241,318
219 Parkside Assessment District 336,469 58,100 (16,154) 0 3,600 0 3,600 41,840 329,375
220 Streets 0 461,700 0 285,700 0 0 758,425 (11,025) 0
221 Traffic Congestion Relief 0 500 (500) 0 0 0 0 0 0
222 Traffic Signal 511,087 12,500 46,250 0 200,000 0 0 0 369,837
223 Traffic Circulation 25,166 200 0 0 0 0 0 0 25,366
224 Transportation Facility Impact 2,091,901 40,000 125,000 0 735,191 0 0 0 1,521,710
225 Transportation 0 111,616 93,384 0 188,900 0 10,000 5,000 1,100
226 Water Neutralization Impact 419,087 37,600 0 0 45,000 0 169,400 0 242,287
230 Construction Tax 3,213 0 0 0 0 0 0 0 3,213
231 Drainage Facility 463 0 0 0 0 0 0 0 463
232 In-Lieu Affordable Housing 65,565 300 25,000 0 0 0 0 0 90,865
233 In-Lieu Underground Utility 197 0 0 0 0 0 0 0 197
241 Water Availability Fund 1,733,516 35,000 0 0 270,997 0 0 0 1,497,519
250 CDBG Grant Funds 0 0 0 0 68,114 0 0 0 (68,114)
271 State COPS Block Grant 92,410 500 100,000 0 0 89,218 0 100,000 3,692
Total Special Revenue Funds $8,357,444 $2,546,266 636,323 $285,700 $5,288,280 $89,218 1,119,188 $224,660 $5,104,387
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Item 11.a. - Page 18
City of Arroyo Grande
Fund Balance -Control
All Funds Operating Budget
2012/13 Adopted Budget
Schedule A
Actual Estimated
Total Total
Unreserved Unreserved
Fund Balance Original Adjustment Operating Operating FY 2011-12 Budgeted Adjustments to Fund Balance
July 1, 2012 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2013
CaQital Project Funds:
350 Capital Improvement Fund $0 $650,000 $1,862,724 $7,297,780 $0 $5,842,352 $3,252,600 $715,552 $0
Total Capital Project Funds $0 $650,000 $1,862,724 $7,297,780 $0 $5,842,352 $3,252,600 $715,552 $0
Enterprise Funds:
612 Sewer $343,570 $1,020,100 $0 $0 $590,982 $0 $329,300 $23,100 $420,288
634 Sewer Facility 331,370 12,000 0 0 149,581 0 0 0 193,789
640 Water Fund 2,246,336 4,168,400 0 0 2,312,235 29,365 2,395,831 52,717 1,624,588
641 Lopez Water 3,086,755 1,937,000 0 0 343,300 0 2,392.,885 (52,585) 2,340,155
642 Water Facility 724,319 25,000 0 0 600,200 0 0 0 149,119
Total Enterprise Funds $6,732,350 $7,162,500 $0 $0 $3,996,298 $29,365 $5,118,016 $23,232 $4,727,939
Trust and Agency Fund:
286 Successor Agency to the RDA $0 $1,006,602 ($103,697) $0 $100,000 $0 $0 $802,905 $0
751 Downtown Parking 182,465 9,300 0 0 183,402 0 3,500 0 4,863
Total Trust & Agency Fund $182,465 $1,015,902 ($103,697) $0 $283,402 $0 $3,500 $802,905 $4,863
Grand Total All Funds
$18,578,112 $22,191,588 $2,743,354 $9,567,980 $9,567,980 $6,026,934 $23,333,879 $1,600,484 $12,551,757
16
Item 11.a. - Page 19
GENERAL FUND-FUND SUMMARY
FUND: 010 GENERAL FUND FISCAL YEAR 2010-11 BIENNIAL BUDGET
2008-09 2009-10 ORIGINAL AMENDED 2011-12 2012-13
ITEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL ACTUAL BUDGET
Beginning Fund Balance $ 2,042,389 $ 2,191,544 $ 3,234,884 $ 3,234,884 $ 3,234,884 $ 3,116,689 $ 3,239,854
Revenues:
Revenues 12,106,969 10,824,018 10,843,670 11,463,685 12,364,941 10,875,562 11,164,924
Transfers In 2,215,319 3,237,649 2,365,200 2,339,800 2,325,564 2,185,483 1,984,500
Use of Reserves 450,000
Total Revenues 14,322,288 14,061,667 13,208,870 13,803,485 14,690,505 13,061,045 13,599,424
Expenditures:
Salaries and Benefits 10,848,356 10,289,661 10,970,320 8,884,473 8,486,398 8,488,012 8,944,330
Current Expenses 2,378,506 2,362,704 2,584,900 4,212,153 3,934,938 4,109,161 4,347,255
Debt Service 122,501 133,750 160,180 160,180 908,595 133,750 155,650
Equipment Replacement 718,886 232,211 118,480 986,393 1,068,357 93,310 187,475
Transfers Out 104,882 40,000
Capital Transfers 451,000 410,413 7,411
Total Expenditures 14,173,131 13,018,326 13,833,880 14,694,200 14,808,701 12,831,644 13,674,710
Total Operating Increases (Decreases) 149,155 1,043,340 (625,010) (890,715} {118,196} 229,401 {75,286}
Audit Adjustments to Fund Balance (40,237)
Use of Reserves {450,000}
Total Adjustments to Fund Balance 149,155 1,043,340 {625,010} {890,715} ~118,196} 189,164 ~525,286}
Ending Fund Balance 2,191,544 3,234,884 2,609,874 2,344,169 3,116,689 3,305,853 2,714,568
Reserve for Carry-Over of Appropriations {95,658} {82,262} {65,999}
Available Fund Balance $ 2,095,886 $ 3,152,622 $ 2,609,874 $ 2,344,169 $ 3,116,689 $ 3,239,854 $ 2,714,568
17
Item 11.a. - Page 20
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2012 -December31, 2012
FUND: GENERAL FUND
DEPARTMENT: CITY ADMINISTRATION
Mid-Year Accomplishments
• Prepared promotional materials related to the Five Cities Diversity Coalition.
• Completed and implemented an organizational assessment of the maintenance
services operation.
• Coordinated dissolution of the Redevelopment Agency.
• Prepared and implemented a social media policy.
• Prepared draft City Charter and public participation process.
• Prepared and obtained approval for a new Management Salary and Benefit
Resolution.
• Obtained approval from PG&E for the East Grand Avenue Phase II underground
utility project.
• Prepared and obtained approval for the Parkview Village Assessment District
Supplement Engineering Study, which lowered fees for the residents involved.
• Prepared and obtained approval for the Healthy Eating Active Living Cities
Resolution.
• Prepared responses to multiple Grand Jury reports.
• Implemented expansion of the City's volunteer program.
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Item 11.a. - Page 21
Key Issues I Work Efforts In Progress
• Update of the Administrative Policy Manual.
• Update of the Personnel Regulations.
• Development and implementation of customer service improvements.
• Development of strategy to obtain Rule 20A credits to complete Phase Ill
undergrounding of utilities on East Grand Avenue.
• Proposal and establishment of a tourism business improvement district (BID).
• Implementation of City Charter process approved by the City Council.
• Completion and implementation of human resources organizational study.
• Coordinate selection of realtor and sale of three residential lots to provide funding for
the Police building project.
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Item 11.a. - Page 22
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2012 -December 31, 2012
FUND: GENERAL FUND
DEPARTMENT: LEGISLATIVE AND INFORMATION SERVICES
DIVISION: CITY CLERK
Mid-Year Accomplishments
• Finalized documents and tasks from June 2012 Special Election relating to police
station bond measure.
• Prepared City Council Candidate Packets for the November 2012 General Municipal
Election; implemented steps necessary to cancel the Election when there were not
more candidates than offices to be elected.
• Completed implementation of Paperless City Council Agenda Program through use of
mobile devices and prepared electronic communications policy.
• Implemented City Council meeting audio/video streaming and archiving of meetings
on website to enhance public access and government transparency.
• Coordinated biennial Ethics Training for elected and appointed officials.
• Completed biennial review and update of the City's Conflict of Interest Code.
• Coordinated process for new Council appointments/reappointments to City Boards,
Commissions and Committees.
• Coordinated two (2) publications of the City newsletter, Stagecoach Express.
• Updated City website and government access channel with information provided by
City departments on events, programs, and services.
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Item 11.a. - Page 23
Key Issues I Work Efforts In Progress
• Plan and host February 2013 League of California Cities Channel Counties Division
dinner meeting.
• Coordinate Commissioners Orientation; distribute updated Commissioners Handbook.
• Distribute Annual Statement of Economic Interests Forms to all elected and
designated City officials
• Coordinate publication of two (2) issues of the City newsletter, Stagecoach Express.
• Supplement the Municipal Code as new Ordinances are adopted.
• Coordinate upgrade of Council Chambers cable casting and audio systems.
• Draft Ordinance amending the Municipal Code to reflect City organizational changes.
• Update the Citywide Records Retention Schedule to reflect City organizational
changes.
• Coordinate annual records destruction day pursuant to the Records Retention
Schedule.
• Develop proposal/plan for off-site permanent records storage.
DIVISION: INFORMATION TECHNOLOGY
Mid-Year Accomplishments
• Distributed mobile devices to Council and designated City staff.
• Installed FY11-12 workstation replacements.
• Implemented access to designated law enforcement web sites from Police Mobile
Data Computers.
• Implemented network design modifications to support the law enforcement video
surveillance system (Operation Blue Watch).
• Developed IT infrastructure cost analysis for Five Cities Fire Authority.
• Implemented wireless Internet access at Council Chambers.
• Developed secure remote access to City network.
• Installed additional network cabling at Recreation Center to support reorganization.
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Item 11.a. - Page 24
Key Issues I Work Efforts In Progress
• Complete Citizenserve Business License implementation (Administrative Services).
• Complete Citizenserve Planning Application module design and implementation
(Community Development)
• Complete Citizenserve Work Order Management System (Public Works).
• Implement enterprise data backup solution.
• Attend Microsoft Windows Server training.
• Complete web access portion of City Laserfiche upgrade project.
• Complete Information Technology Policies and Procedures Manual.
• Test for MCSE certification.
• Attend Microsoft Exchange (email) training to enhance the level of administration and
support to the City.
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Item 11.a. - Page 25
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2012 -December 31, 2012
FUND: GENERAL FUND
DEPARTMENT: ADMINISTRATIVE SERVICES
Mid-Year Accomplishments
• Completed the Fiscal Year 2011-12 audit for both the City and the Five Cities Fire
Authority (FCFA).
• Completed the California Street Report and California Transportation Report.
• Completed the required State Controllers Report for the City.
• Completed the Recognized Obligation Payment Schedule (ROPS) for the Successor
Agency of the Dissolved Arroyo Grande Redevelopment Agency.
• Prepared the City's fifth Comprehensive Annual Financial Report for the City.
• Prepared the FCFA's basic financial statements.
• Prepared the GANN appropriation limit calculation.
• Updated the City's Cost Allocation plan.
• Completed the CJPIA underwriter's report, property insurance update, and criminal
bond renewal.
• Calculated the assessments for the Landscape & Lighting maintenance districts,
Grace Lane assessment district and Parkside assessment district.
• Prepared the annual TOA claim form.
• Calculated the Fire GO Bond Tax levy.
• Completed documents necessary for dissolution of the Redevelopment Agency.
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Item 11.a. - Page 26
Key Issues/Work Efforts In-Progress
• Update the City's purchasing policy.
• Update the financial and personnel section of the Administrative Policy Manual.
• Prepare the Fiscal Year 2013-14 and 2014-15 biennial budget.
• Perform internal audits of City departments.
• Assist with employee negotiations.
• Issue Request for Proposal for audit services.
• Implement new Business License system.
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Item 11.a. - Page 27
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1. 2012 -December 31, 2012
FUND: GENERAL FUND
DEPARTMENT: RECREATION SERVICES
DIVISION: GENERAL RECREATION
Mid-Year Accomplishments
• Conducted the Summer and Winter Playground Programs at Elm Street Park with an
average of 40 children participating daily.
• Conducted 21 field trips to local businesses.
• Conducted Winter Break Program at Elm Street Park with an average of 20 children
participating daily.
• The City of Arroyo Grande and Woman's Club Community Center has hosted 320
groups totaling nearly 10,390 participants.
• The Elm Street Community Center has hosted 275 groups and approximately 7 ,625
participants.
• Coordinated Harvest Festival events with the Harvest Festival Organizing Committee.
• Completed and distributed the Fall and the Winter/Spring Activity Guides.
• Awarded a contract and began an inventory of City's owned trees.
• Awarded contract to install a centralized irrigation system.
• Cosponsored the Summer Village Concert Series with the VIA.
• Coordinated continuing improvements to the dog park.
• Coordinated community garden and landscape projects with Eagle Scout Candidates.
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Item 11.a. - Page 28
Key Issues/Work Efforts In-Progress
• All staff will complete or re-certify in CPR and First Aid training this Spring.
• Scheduling activities for the Spring Playground Program.
• Coordinate the 2012 Summer Concert Series with the VIA.
• Continue design and bidding for lighting upgrades at the Soto Sports Complex.
• Develop partnership with Five Cities Girls Softball to build a storage/score shed at
Ikeda Field
• Develop partnership with the Arroyo Grande Woman's Club group to renovate the
Woman's Club Community Center kitchen.
DIVISION: CHILDREN IN MOTION
Mid-Year Accomplishments
• The Children in Motion and Playground programs combined together to save on staff
costs for summer camp at Elm St. Park. Approximately 40-85 children daily attended
and participated in a variety of activities including: 19 field trips, 4 guest speakers,
and theme based games, crafts, and special events.
• Staff held a 3 day Thanksgiving week break day camp at Elm, which approximately 30
children per day participated ..
• Three successful weeks of Winter Camp were completed at the Elm Street
Community Center with an average daily attendance of 20-65 children.
• The Children in Motion Program switched to session cards for attendance to speed up
the payment process and increase customer satisfaction.
• Staff continued to partner with the CAPS program to provide childcare for parents who
need financial help. Currently, 8 children are enrolled in the program.
• The program held an enrichment sewing class after school in October and November
at Ocean View.
• Staff had successful BBQ fundraisers with help from the Lions Club in November and
March.
• The Children in Motion Program held an enrichment class of winter crafts after school
at Ocean View during November and December.
• A successful holiday cookie decorating class was run at the Woman's Club on
December 22"d.
• Staff updated needed licensing papers to remain in compliance with California State
licensing.
• The program once again partnered with Rental Salon and Beauty Supply in
September to run a cut a than fund raiser which raised $800.
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Item 11.a. - Page 29
• The Children in Motion program received a $1000 grant from Wal Mart.
• The Children in Motion program received a $100 grant from Smart and Final.
• The program continues to add parents to our email list for Friends of Children in
Motion.
Kev Issues/Work Efforts In-Progress
• Staff has begun the spring break and summer day camp planning process.
• Staff is completing an examination of children's files for completeness, and will be
distributing any missing paperwork to parents in March with proper documentation as
to stay in compliance with licensing rules and regulations.
• Staff is once again working with the official United States Olympic Committee to
provide Olympic guest speakers in summer.
• Staff will be doing its second annual rummage sale at Elm Park in May. Last year this
event raised over $1,000 for our program.
• Staff will be working with the Lucia Mar Unified School District to update safety
procedures which will follow the school day policies.
DIVISION: PRESCHOOL
Mid-Year Accomplishments
• Conducted the Summer Pre-School Program with an average of 22 children
participating in two three week sessions
• The Fall Pre-School Program operated with 68 students
• Took 52 preschoolers on a field-trip to Holloway's Tree Farm in December
• 20 preschoolers and Children In Motion students participated in the Holiday Parade in
the Village of Arroyo Grande
• Held a "Buy One Get One Free Peel and Stick Coupon Booklet" fundraiser in support
of children's services. The preschoolers sold 152 booklets.
Key Issues/Work Efforts In-Progress
• Staff is currently working on fund raising activities to support children's services
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Item 11.a. - Page 30
DIVISION: SPECIAL PROGRAMS
Mid-Year Accomplishments:
• Held a Summer Carnival on August 1 oth with 130 children participating.
• Held a Pancake Breakfast fundraiser in August that raised over $700 for Children's
Services.
• Held a co-sponsored Cut-A-Thon September that raised over $800 for Children's
Services.
• Organized Harvest Festival Activities including the Diaper Derby and Chili-Fest.
• Conducted the Annual Halloween and Haunted Maze on October 2?1h with over 800
participants.
• Worked with the Arroyo Grande Lions Club to organize the 35th Annual Turkey Trot
Fun Run with over 95 participants.
• The Parent's Night Out program operated this fall with an average of 10 children
participating on the first Friday of each month.
• The Preschool and Children In Motion programs participated in the Annual Holiday
Parade in the Village on Sunday, November 25th.
• Conducted the Holiday Decorating Contest for business and residences.
• Organized a variety of youth and adult contract classes including art, photography,
baton, soccer, tennis, basketball, dog obedience and senior fitness.
• Completed the Summer Softball League with 70 teams.
• Completed Summer and Fall Adult Basketball Leagues with 36 teams.
Key Issues/Work Efforts In-Progress
• Organize and conduct the Youth Wrestling Program.
• Organize and conduct the Winter/Spring Adult Basketball League.
• Organize and conduct the Spring Adult Softball League.
DIVISION: 5 CITIES YOUTH BASKETBALL LEAGUE
Mid-Year Accomplishments
• Registered 108 teams with 870 participants.
• Coordinated with Nipomo Recreation for game scheduling to include an additional
25 team with 208 players.
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Item 11.a. - Page 31
• Prepared game schedules for the league season (665 games).
• Recruited, trained and assigned 51 volunteer referees.
• Completed referee and gym monitor schedules.
• Collected $57,640 in fees.
• Completed team and individual photos.
• Completed the first 315 games of the season including daily preparation of score
sheets.
Key Issues I Work Efforts In Progress
• Preparation of the end of the season tournament schedule for 112 teams playing a
total of186 games.
• Distributing tournament schedules, photo packets and sponsor plaques.
• Continuing preparation of referee schedules.
• Preparation for tournament finals and awards ceremony.
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Item 11.a. - Page 32
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1. 2012 -December 31. 2012
FUND: GENERAL FUND
DEPARTMENT: POLICE
Mid-Year Accomplishments
• Response Times -During this time period, Police Department response times for
Priority 1 calls averaged 2 minutes and 08 seconds. Priority 2 calls averaged 4
minutes and 11 seconds. The reported national average is 8 minutes.
• Calls for Service -Calls for service in this time period decreased by 2% over 2011-
12.
• Arrests -Arrests in this time period increased by 29% over 2011.
• Performance Evaluation Committee -Worked with legal counsel and the AGPOA to
develop a new Annual Performance Evaluation process. The new process was
introduced and has streamlined the annual evaluation process.
• Neighborhood Services Technicians -Due to a recent NST resignation, the position
has changed to three part-time positions covering the City seven days per week. A
recruitment and selection was completed with the goal of having the three NSTs on
board by April 2013.
• Promotional -Designed and implemented a Senior Officer promotional process that
resulted in the promotion of Officers Raetz and Castillo to Senior Officer.
• Police Officer Recruitment -a recruitment process for Police Officer was launched
that resulted in nearly 70 applications. New Officers Dollman and Dodson were hired
and began their Field Training Program.
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Item 11.a. - Page 33
• Reserve Police Officer Recruitment -In an effort to revitalize the Reserve Officer
Program, a recruitment process was launched that resulted in two new Reserve Police
Officers. Reserve Officers Jolly and Smith were hired and began their Field Training
Program.
• Grants -Successfully completed the management of the county-wide $4450,000
"Avoid the 14" Office of Traffic Safety DUI Grant. We accomplished the transition of
grant program to the City of San Luis Obispo, the new grant managers.
• Citizen's Academy -Completed a Citizen's Academy and Volunteer Program
recruitment that trained approximately twelve new volunteers.
• Completed the communications microwave link from the Huebner Lane repeater site
to the Police Station.
Key Issues/Work Efforts In-Progress
• Upgrade Communication Systems -Currently completing the upgrade of both the
Hillcrest and Huebner repeater sites and working with Verizon Communications to
establish a third repeater site at the Vernon water tower.
• Expansion of Property-Evidence Room -As part of the Grand Jury's recommendation
on improving and expanding the Property-Evidence room, suspension of holding cell
operations has expanded the property-evidence function into the former cells.
• Police Consolidation -Potential concepts and cost estimates have been developed
and discussions continue with prospective partners for dispatch services.
• Work is continuing on the new Police Facility project.
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Item 11.a. - Page 34
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2012 -December 31, 2012
FUND: GENERAL FUND
DEPARTMENT: COMMUNITY DEVELOPMENT
DIVISION: PLANNING AND ECONOMIC DEVELOPMENT
Mid-Year Accomplishments
• Processed approval 8 conditional use permits (Apartments at Pike and Elm, the
Market Project, Alder House, Verizon, Mullahey Ford, Bridge St. Wine Tasting, and
SCAT bus washing), 2 lot line adjustments/mergers, 1 appeal, 2 variances, 10
minor use permits, 16 temporary use permits (including the Safe Parking
Program), 1 Planned Sign Program, 10 sign permits, 25 Home Occupation Permits
and approved 25 Business Licenses for businesses located in the City. Reviewed
48 building permit applications.
• Completed feasibility analysis for the two alternatives for the Police Station project.
• Completed two general plan amendments (Bike Plan and Economic Development
Element Update).
• Completed two Development Code Amendments (Clean-up amendment for
habitable structures, utility connections for second units, banner regulations, fee
waivers for Temporary Use Permits) and Floodplain Regulations.
• Processed a pre-application for the Arroyo Grande Center project at Elm St. and E.
Grand Ave.
• Established a scope of work and received from consultant a background report,
draft model and administrative draft policies for the Circulation Element Update.
• Reviewed, commented and participated in the approval of the Sphere of Influence
Update for the City at LAFCO and a Memorandum of Agreement with the County
for future growth principles.
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Item 11.a. - Page 35
• Processed for Council approval two Memorandums of Understanding; one with the
County for the Integrated Regional Water Management Plan and one with the San
Luis Coastal Resource Conservation District for the Corbett Canyon Floodplain
and Stream Restoration Project.
• Processed through Planning Commission for recommendation to Council, the Draft
Historic Resources Context Statement and Limited Survey.
• Completed third annual report for the City's Storm Water Management Program
and submitted it to the Regional Water Quality Control Board and processed
resolution for joining stormwater coalition.
• Completed inventory, gap analysis and preliminary selection of emission reduction
strategies for the Greenhouse Gas/Climate Action Plan.
• Worked with consultants to submit as the Lead Agency a Local Groundwater
Assistance Grant application to the Department of Water Resources for the
development of a Salt and Nutrient Management Plan for the Northern Cities
Management Area (NCMA) and Nipomo Mesa Management Area (NMMA) of the
Santa Maria Groundwater Basin and continued to meet monthly with the NCMA
Technical Group consisting of neighboring jurisdictions for the quarterly
groundwater monitoring program and development of the required annual report.
• Met with Arroyo Grande Watershed MOU stakeholder group to coordinate grant
support for prioritized watershed projects.
• Continued working with the Central San Luis Resource Conservation District on
the Prop 84 Stormwater Rewards Rebate Program.
• Continued general administration of the Community Development Block Grant
program, including conducting workshops for applicants and bringing preliminary
funding proposals to Council.
• Participated in the San Luis Obispo County GIS User Group. Became a member of
the Regional GIS Collaborative.
• Developed and processed a letter of support for continued accreditation for Cuesta
College.
• Continued administration of the City's lnclusionary Housing program, and attended
monthly Housing Trust Commission meetings that included review of funding
applications for multiple affordable housing projects within SLO County, discussion
of developing a loan review process and underwriting guidelines, and a potential
new forgivable loan/recoverable grant program.
• Participated in the regional Greenhouse Gas Stakeholders, San Luis Energy
Watch Partnership, C5 (Central Coast Clean Cities Coalition), and SLO Greenbuild
groups, and attend monthly Water Resources Advisory Committee meetings at
San Luis Obispo County.
• Attended monthly regional Partner's in Water Quality and Partner's in Water
Conservation meetings.
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Item 11.a. - Page 36
• Participated in the Arroyo Grande In Bloom Public Art Committee.
• Held initial meetings regarding potential projects for the Chevron Station on W.
Branch St., commercial projects at the JJ's site, and at Cornwall Ave. and El
Camino Real.
• Continued to staff monthly Architectural Review, Historic Resources Committee,
and bimonthly Staff Advisory and Planning Commission meetings.
• Interviewed volunteer Norman Baxter for assistance with planning related reports.
Key Issues I Work Efforts In Progress
• Assist where feasible applicants related to development at key locations such as
the restaurant pad at the Hampton Inn, the Arroyo Grande Center, JJ's Building
site, El Camino and Cornwall, Courtland and E. Grand, a new location for the LOS
Church, potential redevelopment of properties on El Camino Real and the Castillo
Del Mar Road connection.
• Respond to HCD comments and complete final Housing Element.
• Conduct additional Resource Surveys related to the adopted Historical Resources
Context Statement.
• Scoping of the Land Use Element Update and remaining elements.
• Complete Circulation Element Update.
• Design and process through approval the new Police Station project.
• Conduct feasibility analysis for long range circulation improvements at Fair Oaks
and the Freeway 101 off-ramp.
• Continue implementation of City's Housing, Water Conservation and Stormwater
Management Programs.
• Improve internal efficiencies to improve customer service as directed in the
Economic Development Element Update.
• Interim and long term growth potential for the Fredrick's and Williams' property.
• Update of water neutralization fees.
• Implement Citizen Serve software project tracking.
• Continue grant partnership for the conservation and drainage easements,
environmental review and maintenance plan for the Corbett Canyon Floodplain
and Stream Restoration Project.
• Continued implementation of the Prop 84 Stormwater Rewards Rebate Program.
• Implement plan for James Way Open Space trail connection.
• Comprehensive website updates including integration of GIS capabilities.
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Item 11.a. - Page 37
DIVISION: BUILDING AND LIFE SAFETY
Mid-Year Accomplishments
• Continued education and implementation of the Adopted 2011 California Building
Codes including the new California Residential Code and California Green Building
Code as amended to fit our local conditions and for consistency with neighboring
jurisdictions.
• Issued 198 total permits with an estimated contract valuation of$ 7,480,006.
• Assisted in the fire alarms testing and maintenance at Arroyo Grande High School
in conjunction with the Five Cities Fire Authority. Found some discrepancies and
lack of alarm coverage, these areas are being repaired and brought up to current
standard.
• Continued to modify and improve the Citizenserve software comprehensive
permitting software that provides remote inspection tracking and create real time
inspection results, and enables streamlined permit tracking and better accounting
of permit & development impact fees.
• Brought the blueprint and large plan scanning project and document archival
system up to date.
• Maintained plan review maximum 2-week turn around.
• Maintained same-day inspection if called in the morning before a certain time.
• Began recruitment for office assistant (Building Division)
• Major projects that have been completed are:
o Continued with the inspection of the attached single-family homes adjacent
to the Arroyo Grande Community Hospital on Fair Oaks Ave. Several have
gotten their final inspection and occupancy granted.
o Additional permits were issued for the custom homes at the Grace Lane
project.
o Issued thirteen permits for single family residential homes and completed
and allowed occupancy of three new secondary dwelling units.
o Issued permits for the Pier 1 Imports building located at 901 Rancho
Parkway
o Final inspection for the permit for the Grace Bible Church multi-
purpose/class room addition.
o Final inspection for the Wal-Mart interior remodel
35
Item 11.a. - Page 38
o Issued Certificates of Occupancy for:
• Arroyo Grande Veterinary Clinic on Grand Ave.
• Smart & Final remodel
• Susan's clothing (Rancho Parkway)
• Massage Envy (Rancho Parkway)
• Big Brand Tires (Grand Ave.)
Key Issues I Work Efforts In Progress
• Update the Americans' with Disabilities Act (ADA) compliance plan.
• Expand interactive remote inspection through use of smart phone devices.
• Citizen Serve software implementation for code enforcement, business license,
planning and maintenance service.
• Adopt the 2014 California Building Code with amendments.
• Permitting and inspection for projected projects.
• Process, track and record code enforcement cases in coordination with Police
Department Neighborhood Services Officer.
• Issue building permits for:
o The Market project
o JJ's Building
o Pike and Elm apartments
o Lots at Cherry Creek and Grace Lane
DIVISION: ENGINEERING SERVICES
Mid-Year Accomplishments
• Processed and inspected 21 encroachment permits for work within the City right-
of-way.
• Completed the Sewer Lift Station 3 project.
• Completed construction of the El Camino Real Improvement Project.
• Completed the Greenwood Tract Improvement Project.
• Completed the 2012 digout project and placed microsurfacing and slurry sealing
membranes for selected City streets in accordance with the recommendations of
the Pavement Management Program.
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• Submitted all Environmental Studies and Design Exception Fact Sheets to
Caltrans for the Brisco Interchange project.
• Developed alternatives for Council approval for interim Pedestrian Improvements
at Fair Oaks and Station Way with the Lucia Mar Unified School District and the
Police Department.
• Awarded a contract for the E. Grand Ave. Concrete Repair project.
• Completed Draft Water Master Plan and Sewer Master Plan updates.
• Consultants completed draft Environmental Assessment, survey and initial
feasibility of alternatives for the Bridge Street Bridge rehabilitation or replacement
project.
• Awarded contract to upgrade the Soto Sports Complex electrical switchgear,
athletic field lighting replacements at the Ikeda and Volunteer Fields, and install
new athletic lighting for Don Roberts Field.
• Completed construction of the Castillo Del Mar Bike Path.
• Processed Speed Surveys for selected City streets through adoption.
• Staffed monthly Traffic Commission and provided Engineering Division
representation at twice monthly SAC meetings.
• Revised striping at El Camino Real to facilitate SCAT bus routes.
• Participated in the processing, approval process or plan checking of the following
significant projects:
o Pier One
o Village Market Project
o McDonalds Upgrades
o Villas Del Mar Residential Complex at the Pike and Elm Street
• Implemented the City Stormwater Management Plan (SWMP) Committee for
implementation of post construction stormwater regulations.
• Completed selection of on-call Engineering Consultants.
• Represented the City at monthly meetings of the Countywide Hydromodification
Technical Advisory Committee, So. Co. Sanitary Committee, Zone 3 TAC,
SLOCOG TTAC, the WRAC and NCMA TAC.
• Hired an Associate Engineer and a Part-time Office Assistant to fill vacated
positions.
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Item 11.a. - Page 40
Key Issues I Work Efforts In Progress
• Complete interim pedestrian improvements in the vicinity of Fair Oaks, Station
Way and the Freeway 101 off-ramp.
• Complete the design and perform contract administration and construction of the
Well No. 11 project.
• Finalize Caltrans funding documentation requirements to enable the design and
construction of the Oak Park Boulevard and W. Branch Street protected turn-signal
project. Design the W. Branch Street and E. Grand Ave. signalization phasing
project.
• Design and construct capital projects for the revised Car Corral upgrade, Montego
Street Sidewalk Infill, and the Alpine Street Waterline upgrades.
• Continue Implementation of Stormwater Management Plan including new code
update and required reporting requirements.
• Complete design, contract administration and construction for 2013 Pavement
Management projects including asphalt overlays for; East Grand Avenue, between
El Camino and Traffic Way, a portion of Fair Oaks Avenue, between Alder Street
and Halcyon Road, and Larchmont Drive; and microsurfacing and slurry seal
applications for selected City street in accordance with the recommendations of
the Pavement Management Program.
• Complete City traffic model and Traffic Impact Study Policy.
• Safe Route to School Grant Application submittal.
• NPDES and storm water inspection and erosion control training program.
• Design and construct drainage improvements at Colina & Via La Barranca, W.
Branch at Wesley Street, Larchmont Drive, and Oro Drive.
• Implementation of departmental documentation in accordance with the City's
. archive policy.
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Item 11.a. - Page 41
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2012 -December 31, 2012
FUND: GENERAL FUND
DEPARTMENT: PUBLIC WORKS
DIVISION: GOVERNMENTAL BUILDINGS
Mid-Year Accomplishments
• Completed over 43 work orders for service to various City Facilities.
• Performed roof repairs at various buildings including City Hall, Police Station and
Council Chambers.
• Completed plumbing and electrical repairs at various City buildings.
• Installed new flooring in the restrooms at Elm Street Recreation Center.
• Performed maintenance on electrical systems and lighting including upgrades and
replacements.
• Performed parking lot lighting repairs in Olahan Alley.
Key Issues/Work Efforts in Progress
• Continue coordination of floor and carpet cleaning.
• Replace floor covering in Short Street restrooms.
• Continue getting bids for replacement of HVAC unit at City Council Chambers.
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Item 11.a. - Page 42
DIVISION: AUTOMOTIVE SHOP
Mid-Year Accomplishments
• At Mid-Year, the Automotive Shop has carried out the following services:
Services (lube, oil, filter, safety insp.) 115
Tune Up (scope, spark plugs, rotor, cap 30
General (mechanical i.e., pumps, cables) 25
Electric (starter, alternator, wiring) 55
Brake Repair 25
Warranty Repair 30
Transmission Service and Repair 15
Tire Services (replacing, mount & balance) 70
Tire Repair 55
Pre Trip Check 115
Smog Certificates 12
Fuel Island Maintenance 45
Fleet Retrofitting per ARB requirements & regulations 5
Heavy Duty Equipment Service & Repair 20
Key Issues I Work Efforts In Progress
• Biennial Inspection of Terminal (BIT) as per the State of California and California
Highway Patrol.
• Continue to maintain the City fleet at a high level of reliability and safety.
• Annual Underground Storage Tank Inspections.
• Installation of card reader fuel dispenser
• Maintenance on new card & key fuel dispenser
• Vehicle & equipment retrofit for diesel particulate matter control
• Daily Inspections of VST Enhanced Vapor Recovery nozzles (ARB requirement)
DIVISION: PARKS
Mid-Year Accomplishments
• Worked with various volunteer groups, including Arroyo Grande in Bloom, Arroyo
Grande Tree Guild, Boy Scouts/Eagle Projects and the Five Cities Dog Park
Association on special projects.
• Performed various irrigation installations and repairs.
• Emptied 143 trash cans twice each week.
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Item 11.a. - Page 43
• Watered 45 pots twice each week.
• Mowed 32 acres of turf each week.
• Mounted banners and street light banners for the Harvest Festival and Winter in
the Village.
• Assisted with the Recreation Division's Summer Carnival, Harvest Festival,
Halloween Carnival, Turkey Trot activities, Soto Sports Complex -Cops and Kids
Field Day and Rotary Bandstand Concerts for the Village Summer Concert Series.
• Completed the city wide tree inventory and underwent training for the use of the
Tree-Keeper software.
Key Issues I Work Efforts In Progress
• Complete pruning of City trees on City truck routes.
• Completion of Centralized Irrigation System and undergo training for the use of the
associated software.
• Prepare plan for renovation of Hoosesow Park in conjunction with Arroyo Grande
in Bloom.
• Coordinate High School Senior AP workday in conjunction with Arroyo Grande
High School and Arroyo Grande in Bloom.
DIVISION: SOTO SPORTS COMPLEX
Mid-Year Accomplishments
• Prepped fields and provided maintenance for adult softball, Babe Ruth Baseball,
Adult Baseball, Little League Baseball, girls softball, Sober Softball tournament,
AYSO tournament, two AYSO soccer camps and Cops N Kids Field Day.
• Renovated and hydro-seeded lkedaNolunteer Fields. Replaced multiple irrigation
valves throughout the Soto Complex.
• Replaced ballast, lights and installed bird prevention spikes on all light poles at the
tennis courts. Maintenance and washing of courts and surrounding areas.
• Preformed over 667 field preparations for softball, soccer, football games and
layouts. Weekly line painting, pumping excess water off fields to ensure
scheduling.
• Repaired wind screens at the tennis courts.
Key Issues I Work Efforts In Progress
• Complete renovations to Pilg, Campbell, Porter, Don Roberts and Santos small
lawns and turf areas.
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Item 11.a. - Page 44
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2012 -December 31. 2012
FUND:
DEPARTMENT:
STREETS FUND
PUBLIC WORKS
DIVISION: STREET & BRIDGE MAINTENANCE
Mid-Year Accomplishments
• 19 In-house concrete replacement projects.
• Completed annual cleaning of Tally Ho and Meadow Creeks.
• Completed Phase I of the Grand Ave concrete Replacement Program.
• Completed City Storm Drain Cleaning Program.
• Completed Under Sidewalk Drain Cleaning Program.
• Completed painting of all School Crosswalks.
• Used over 24 Ton of asphalt for various paving and patch work of city roads.
• Completed 208 Service Request.
Key Issues/Work Efforts in Progress
• Continue with concrete replacement.
• Annual sign program.
• Painting red curbs, sign poles and pavement markings citywide.
• Preparing phase II of concrete replacement to go to bid.
• Prepare street sweeping RFP.
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Item 11.a. - Page 45
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1. 2012 -December 31, 2012
FUND: SEWER FUND
DEPARTMENT: PUBLIC WORKS
DIVISION: SEWER MAINTENANCE
Mid-Year Accomplishments
• Completed Lift Station #3
• Repaired Manhole on South Traffic Way Extension
• Completed the quarterly cleaning of lift stations 1-7
• Continued the Fats, Oils & Grease (FOG) Program with inspections of commercial
businesses
• Repaired/installed Pump No. 2 at Lift Station No. 1.
• Completed root foaming problem sewer mains.
• Completed Sewer Master Plan Update.
Key Issues I Work Efforts In Progress
• SOP preparation for new WDR Orders
• Sewer main lining project preparation.
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Item 11.a. - Page 46
MANAGEMENT REPORTING SYSTEM
MID-YEAR
July 1, 2012 -December 31, 2012
FUND: WATER FUND
DEPARTMENT: PUBLIC WORKS
DIVISION: WATER ADMINISTRATION
Mid-Year Accomplishments
• Completed 272 Service Requests.
• Completed 343 Service Orders/Open & Close.
• Completed 170 USA Marking requests.
• Completed Water Master Plan Update.
Key Issues I Work Efforts In Progress
• Phase II of the Water Conservation Program.
• School Education program for Water Conservation.
• Northern Cities Management Area Projects/Meetings.
• Zone 111 Projects/Meetings.
• Plumbing Retrofit Program Phase I.
• Preparing RFP for rate study.
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Item 11.a. - Page 47
!!
DIVISION: WATER PRODUCTION
Mid-Year Accomplishments·
• Pumped a total of 152 acre-feet of well water July 1st through December 31st_
• Completed Well Motor Maintenance Program.
• Replaced the chemical feed pump at Well's 7 & 8.
• Replaced sodium hypochlorite vendor and installed new storage tanks at Well
No's. 7, 8, & 10.
• Received $2,760 grant from PG&E for Well Efficiency Improvement for Well #7.
Key Issues I Work Efforts In Progress
• Well #11 Design/Construction.
DIVISION: WATER DISTRIBUTION
Mid-Year Accomplishments
• Replaced six (6) old water services citywide
• Repaired eight (8) water services citywide
• Repaired water main break on the Ash Street 12" main
• Replaced seals on pumps at Rancho Grande booster
• Abandoned one (1) water service
• Power washed/painted Vista Del Mar Pump Station
• Repaired water main break on Branch Mill Road broken by So. Cal. Gas
• Completed Dead-End Water Main Flushing Program
Key Issues I Work Efforts In Progress
• South Alpine Street water main replacement project
• Cleaning of Reservoir No. 3
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