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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. Item 10.b. - Page 3 CITY COUNCIL CONSIDERATION OF LOCAL SALES TAX 10-YEAR PLAN JUNE 23, 2015 PAGE3. 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 Item 10.b. - Page 4 . CITY COUNCIL CONSIDERATION OF LOCAL SALES TAX 10-YEAR PLAN JUNE 23, 2015 PAGE4 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. Item 10.b. - Page 5 CITY COUNCIL CONSIDERATION OF LOCAL SALES TAX 10-YEAR PLAN JUNE 23, 2015 PAGES 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. Item 10.b. - Page 6 CITY COUNCIL CONSIDERATION OF LOCAL SALES TAX 10-YEAR PLAN JUNE 23, 2015 PAGES 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% THIS PAGE INTENTIONALLY LEFT BLANK Item 10.b. - 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