CC 2015-06-23_10b Local Sales Tax 10 Year PlanItem 10.b. - Page 1
MEMORANDUM
TO:
FROM:
CITY COUNCIL/SUCCESSOR AGENCY BOARD OF DIRECTORS
ROBERT MCFALL, INTERIM CITY MANAG~
DEBBIE MALICOAT, DIRECTOR OF ADMI~IVE SERVICES lfrl\
SUBJECT: CONSIDERATION OF LOCAL SALES TAX 10-YEAR PLAN
DATE: JUNE 23, 2015
RECOMMENDATION:
· · It is recommended the City Council: . . .
·. 1. Provide Direction on Proposed Projects Funded th~ougti the Local Sales tax; and ·
2. Approve the Local Sales Tax 1 0-Year Plan; and
3. Amend the FY 2015-16 Budget to reflect the approved expenditures from the
Local Sales Tax Fund .
. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The expenditure budget in the Local Sales Tax Fund is $2,448,650 in FY 2015-16 and
$20.9 million over the ten-years of the plan. The impact on financial and personnel
resources will be dependent upon any changes approved by the City Council. ·
BACKGROUND:
On May 12, 2015, staff presented the preliminary FY 2015-16 and FY 2016-17 Biennial
Budget for non-General Fund programs and projects for the City Council to review. On .
June 9, 2015, the City Council approved the FY 2015-16 and 2016-17 Biennial Budget,
however concerns were expressed about the allocation of funding towards the Local
Sales Tax Fund. Specifically, concerns were expressed regarcjing th~ prioritization of
.·.the funding allocated and about the allocation of funding· in relatively small amounts, .·
rather than "bundling" these into one capital project.
ANALYSIS OF ISSUES:
.As reflected in Attachment 1, staff has separated expenditures identified in the Local
Sales Tax Fund 10 year Plan into two categories. First, those projects and expenses
that staff believe have been previously discussed and approved by Council. Staff does
Item 10.b. - Page 2
CITY COUNCIL
CONSIDERATION OF LOCAL SALES TAX 10-YEAR PLAN
JUNE 23, 2015
PAGE 2 ·
not intend to specifically discuss these projects, unless the Council requests discussion
of a particular project or expense.
The second list represents projects or programs that would benefit from clarification and
direction from the Council. Many of these represent annual funding in an attempt to
create set-asides for ongoing .infrastructure or routine needs. As more fully described
below, staff suggests discussion of each of the following items to determine the
consensus of the Council in how to proceed:
1. Traffic/Pedestrian Safety Improvement Program
2. Project Studies and Planning ·
3. Various Park Equipment and Improvements
4. Street Tree Trimming
5. Various Drainage and CMP Replacements
6. Stormwater Monitoring Requirements
7. Emergency Operations Center
8. Various Facility Repairs
9. Recreation Center Operations
10. Transfers to General Fund Operations
·Each project is described below in more detail
Traffic/Pedestrian Safety Improvement Program ($22,500 annually)
New this year, Council previously endorsed the concept of setting aside funding
for the implementation of safety improvements throughout the City for items such
as: installation of rapid flashing beacons at crosswalks, additional roadway
· · . signage, revised roadway striping, or other safety improvements. Although
previously approved by Council, staff would like to reaffirm Council support for
this funding in light of the current discussion. ·
Project Studies and Planning ($1 0,000 annually)
Similar to the above program, this funding has been previously set aside annually
to accommodate unforeseen studies or plans that may occur during the course of
the fiscal year. Although specific plans or studies are not currently identified, . .
historically at least one item has come to staff or Council's attention during the
year that requires additional study or planning efforts, such as traffic studies in
the Berry Gardens neighborhood or the circulation study for the McKinley
. neighborhood .. This funding is _a means of setting aside some resources to
-accommodate these types of unforeseen events. However, if Council is inclined
to discontinue this practice, staff would bring specific items to Council for funding
considerations as-needed.
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CONSIDERATION OF LOCAL SALES TAX 10-YEAR PLAN
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Various Park Equipment and Improvements ($25.000 annually)
Since the. 2009~10 fiscal year, the City has been diligent in allocating funding
towards park improvements throughout the City including: . installation and
replacement of benches, picnic tables, trash and recycle containers and play
equipment; replacement of irrigation systems; and turf renovations.
Approximately $20,000 per year has been allocated towards this on-going
maintenance through park improvement impact ·fees. This $20,000 allocation
has primarily been used for the annual turf renovation program at the Soto Sports
Complex with minimal funds used for infrastructure repair at the City's various
park and landscape facilities.
Beginning in fiscal year 2015-16, staff is recommending $25,000 per year of the
Sales Tax revenue be allocated towards this program. The additional funding will
be used primarily for repair and replacement of play structures, fencing, pathway
repairs and other infrastructure.
· The City's inventory of parkland and open space includes the following:
Total Parkland Acreage/ Developed: 82.70
Total Parkland Acreage/ Undeveloped: 85.64
Total Landscape Planter areas: 22
Total City-maintained parkland and open space: 168.34 acres
Currently, Public Works staff is completing an inventory and assessment of the
infrastructure in our parks and landscape areas. This asset replacement report
will be completed in the 2015-16 fiscal year and a detailed schedule with
estimated replacement cost estimates will be provided to the City Council for
review. In the meantime, the park improvement impact fees is not ;:tn adequate
funding source for the asset replacement needs for the parks, landscape and
open space areas, so a place holder amount of $25,000 was recommended for
fiscal years 2015-16 and 2016-17.
Street Tree Trimming ($25.000 annually)
The City maintains approximate 2,800 street trees, some of which require
·reiatively minor trimming/shaping, others that require more significant trimming or
are located on heavily traveled streets, requiring frequent safety trimming. Prior
to 2008, City staff completed annual hazard reduction pruning work on City-
maintained trees on a three-year rotating schedule. This maintenance activity
was discontinued due to staffing reductions. As a result, a backlog of tree
maintenance work and hazard reduction pruning has developed. The current
tree trimming and hazard reduction strategy is to address problem trees and
pot~ntially hazardous trees on a case-by-case basis.
Staff is recommending the use of Sales Tax funds to institute a program of
scheduled and systematic tree hazard reduction pruning. Based on an average
cost of $250 per tree, the proposed $25,000 annual funding provides for hazard
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CONSIDERATION OF LOCAL SALES TAX 10-YEAR PLAN
JUNE 23, 2015
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reduction pruning for approximately 100 trees per year. These funds would be
used primarily to hire a private tree trimming company to prune trees on high
traffic arterials and collectors. The work by the private. tree trimming company
will supplement City staff, which will focus tree maintenance efforts on street
trees on lower volume residential streets.
Various Drainage and CMP Replacements ($60,000-$85.000 annually)
· The City has a significant investment in drainage systems to accommodate
seasonal rain flows. In addition, many of the City's storm drain pipes were
constructed of corrugated metal pipe (CMP), and are reaching the end of their
useful lives. Depending on conditions, corrosion occurs and. the structural
integrity of the pipes can become compromised. This program was originally
created for drainage and sediment control improvements for projects at TallyHo,
Newsom Springs, and a retention overflow basin at Arroyo Grande Creek near
the City entrance. Since then, the Program has expanded to include all drainage
and stormwater-related expenses and improvements, not just the improvements
near the creek. If Council desires, the funding could be eliminated and staff
would bring specific projects to Council as identified.
As stated above for the asset replacement for parks,· Public Works staff is
currently working on an inventory and assessment of the infrastructure in the
City's storm drain system. This asset replacement report will be completed in the
2015-16 fiscal year and a detailed schedule with estimated replacement cost
· estimates will be provided to the City Council for review. In the meantime, there
· is not currently a funding mechanism for the drainage system asset replacement
needs, so funding of $35,500 for FY 2015-16 and $60,000 for FY 2016-17 is
. requested from the Sales Tax fund.
Stormwater Monitoring Requirements ($25.000 annually)
The City is completing a State mandated stormwater monitoring program that will
require implementation in FY 2015-16. As the City's monitoring and testing
program has not been finalized and approved by the Regional Water Quality
Control Board, we are unable to determine exact costs for this program. Staff
anticipates that a regimen of inspections and water sampling will be required as
well as regular lab testing and report submissions. If Council desires, the funding
·could be eliminated and staff· would bring specific projects to Council as
identified.
Emergency Operations Center ($2.500 annually)
· This funding has been set aside to accommodate any improvements needed to
. the City's Emergency Operation Center. If Council desires, the funding could be
eliminated and staff would bring specific projects to Council as identified.
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Various Facility Repairs ($25,000 annually)
The City has delayed many facility maintenance activities due to lack of available
funding. This includes items such as roof replacements, HVAC system
replacements, carpet replacements, and painting. This funding has been
identified to provide for the upkeep, minor upgrades and maintenance of City
facilities. If Council desires, the funding could be eliminated and staff would bring
specific projects to Council as identified. In the Biennial .Budget period, the
following uses were antiCipated: Council Chambers root.·repairs in ·FY '2015-16
and repainting of the Woman's Club building in FY 2016-17.
During fiscal year 2015-16, an inventory and assessment of the condition of all
buildings will take place in order to develop a comprehensive asset replacement
· report. This report will provide a detailed schedule of building repairs along with
estimated replacement costs for review by the City Council. In the meantime,
funding of $25,000 per year is requested for FY 2015-16and FY 2016-17.
Recreation Center Operations ($75,000 annually beginning in 2019-20)
The funding identified reflects the projected contribution to the ongoing
operational costs that would be associated with a new Recreation/Community
Center, if built by the Five Cities Community Foundation. This was a previous
administrative commitment on behalf of the City to assist in the on-going
operation of the facility.
Transfers to General Fund Ope.rations ($100.000 ih FY·2020~21 through FY 2023-24)
The funding identified attempts to acknowledge that in the next economic down
turn the General Fund may require supplementation by the Sales Tax Fund. As
staff refines the long-range financial pl~n. additional discussion about the need
for this could arise. However, at this point, the need for this funding is speculative
and could be removed from the current 1 0-year plan .
. ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Approve the Local Sales Tax 10 Year Plan and amend the FY 2015-16 Budget;
2.. Modify and approve the Local Sales Tax 10 Year Plan and amend the FY 2015-
16 Budget;
3. Do not approve the Local Sales Tax 10 Year Plan or amend the FY 2015-16
Budget; or
4. Provide direction to staff.
ADVANTAGES:
Considering the Local Sales Tax 10 Year Plan provides an opportunity for the Council,
staff and the community to achieve a common understanding regarding the upcoming
uses of the revenue.
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CONSIDERATION OF LOCAL SALES TAX 10-YEAR PLAN
JUNE 23, 2015
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DISADVANTAGES:
There is the potential for a change or elimination of funding for some projects.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, June 18, 2015 and on the
City's website on Friday, June 19, 2015. No comments were received.
Attachment:
· 1. Local Sales Tax 10 Year Plan
Item 10.b. - Page 7
CITY OF ARROYO GRANDE Attachment 1
LOCAL SALES TAX FUND
10-Year Revenue and Expense Plan
Fiscal Year
Item 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
PROJECTS TO BE REVIEWED:
Traffic/Ped Safety Improvement Program 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500
Project Studies and Planning 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Various Park Equipment and Imp 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Street Tree Trimming 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Various Drainage, CMP Replacements 35,500 60,000 85,000 84,000 84,000 84,000 84,000 84,000 84,000
Stormwater Plan 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Emergency Operations Center 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
Various Facility Repairs 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Recreation Center Operations 75,000 75,000 75,000 75,000 75,000
Transfers to General Fund Operations 100,000 100,000 100,000 100,000
Subtotal Projects to be Reviewed 12,500 170,500 195,000 220,000 219,000 294,000 394,000 394,000 394,000 394,000
PROJECTS NOT TO BE REVIEWED:
Castillo Del Mar Road Improvements 50,000 100,000
East Branch St Streetscape 50,000 20,000 97,600
Fair Oaks/Orchard Rd Intersection Imp 50,000
Halcyon Rd Complete Street Plan Study 19,500
Brisco Rd Interchange Project 200,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000
Subtotal Transportation 100,000 189,500 297,600 250,000 250,000 250,000 250,000 250,000 250,000 250,000
Pavement Management Program 632,432 675,000 700,000 725,000 750,000 . 775,000 . 800,000 825,000 850,000 875,000
Striping and Sidewalk Improvements 100,460 100,000 55,000 60,000 115,000 120,000 125,000 130,000 130,000 130,000
East Grand Ave Sidewalk Imp 100,000 100,000
Street Maintenance 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
ADA Improvements 45,000 75,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 . 90,000
Construction Mgmt/lnspect (In-house staff) 30,000 42,700 43,600 44,400 45,300 46,200 47,100 48,100 49,000 50,000
Paulding Wall Extension 25,000 50,000
Alpine St Waterline & Street Imp 110,000
Larchmont Street Improvements 243,055
Underground Utilities 17,000
Item 10.b. - Page 8
Fiscal Year
Item 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Swinging Bridge Reinforcement 40,000
Traffic Way Bridge Improvements 8,147 8,500 48,200
Le Point St Parking Lot 260,293 239,700 240,000
Le Point St Parking Lot Lease 49,317 32,000
Subtotal Street/Park Improvements 1,660,704 1,322,900 1,293,600 1,137,600 1,075,300 1,111,200 1,147,100 1,183,100 1,214,000 1,245,000
--
Clark Properties Drainage Improvements 50,000
Vard Loomis Drainage Improvements 25,000 25,000
Retention Basin Maintenance (GF transfer) 26,646 27,200 27,700 28,300 28,800 29,400 30,000 30,600 31,200 31,800
Platino Ln/Oro Dr Inlet 50,000
Corporation Yard Stormwater Imp 25,000
Stormwater Annual Permit & Program 28,350 14,500 15,000 15,000 16,000 16,000 16,000 16,000 16,000 16,000
Subtotal Drainage Improvements 179,996 66,700 67,700 43,300 44,800 45,400 46,000 46,600 47,200 47,800
Fire JPA 135,000 137,700 140,500 143,300 146,100 149,100 152,000 155,100 158,200 161,300
Fire Apparatus 21,163 21,200 28,800 28,800 28,800 28,800 28,800 28,800 28,800 28,800
Police Station Upgrade 595,500
Police Senior Officer Position 153,000 167,700 171,100 174,500 178,000 181,600 185,200 188,900 192,700 196,500
Regional Narcotics Task Force (Annual) 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000
Police Firing Range 120,000
Subtotal Public Safety 928,663 350,600 364,400 370,600 376,900 503,500 390,000 396,800 403,700 410,600
City Hall Debt Service 27,546 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000
Council Chambers Upgrade 25,000 225,000
Corporati on Yard Upgrade 241,155 55,000
Server Virtualization 50,000
Elm Street Community Center Upgrade 160,000 150,700 150,700
Citywide Solar Panel Project 3,500
Wireless Internet Access 32,450
Electric Vehicle Charging Station 5,000
IT Firewall Replacement 30,000
Financial Management System 200,000
Subtotal City Facilities 343,701 340,950 210,000 170,700 370,700 20,000 20,000 20,000 20,000 20,000
Annual Audit and Sales Tax Report 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500
Subtotal Other 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7 ,500 7,500
Item 10.b. - Page 9
Fiscal Year
Item 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Total Operating Expenses 615,022 632,000 615,700 . 623,300 632,000 715,100 823,100 831,500 839,900 848,400
Total CIP Expenses 1,840,150 833,650 852,600 548,900 600,700 370,000 250,000 250,000 250,000 250,000
Totai Capital Maintenance Expenses 777,892 983,000 967,500 . 1,027,500 1,111,500 1,146,500 1,181,500 1,216,500 . 1,246,500 1,276,500
To t al Expenses 3,233,064 2,448,650 2,435,800 2,199,700 2,344,200 2,231,600 2,254,600 2,298,000 2,336,400 2,374,900
Projected Revenue 2,115,500 2,200,120 2,277,124 2,345,438 2,415,801 2,439,959 2,464,359 2,390,428 2,270,907 2,111,943
Revenue Over/(Under) Expenses (1,117,564) (248,530) (158,676) 145,738 71,601 208,359 209,759 92,428 (65,493) (262,957)
Estimated Ending Fund Balance 567,943 319,413 160,737 306,475 378,076 586,435 796,194 888,622 823,129 560,172
%Fund Balance of Programmed Expenses 18% 13% 7% 14% 16% 26% 35% 39% 35% 24%
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Item 10.b. - Page 10