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11.b. Fiscal Year 2011-12 Mid Year Budget ReportMEMORANDUM TO: CITY COLlNClL FROM: ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVICE SUBJECT: FISCAL YEAR 2011-12 MID YEAR BUDGET REPORT DATE: MARCH 27,2012 RECOMMENDATION: It is recorr~mended the City Council: Approve detailed budget adjustments listed in the Mid-Year budget report; Approve Schedule A; and Approve (Deny) requests for additional appropriations in the General Fund 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: Fund Balance at 1'' Quarter Budget Report: $2,660,729 Net Increase in Revenue $ 1,429 Net decrease in Expenditures 30,250 Total Decrease to General Fund Balance 31,679 Adjusted Fund Balance 12/31/2011 $2.692.408 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. Report on Departmental accomplishments. Agenda Item 11.b. Page 1 CONSIDERATION OF MID YEAR BUDGET REPORT MARCH 27,2012 PAGE 2 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, 201 1 was $33,192,189. This is a decrease of approximately $825,000 compared to June 30, 201 0. The total General Fund balance reported at June 30, 201 1 was $3,116,689, which was a decrease of $1 18,195 from the prior year and was 21 % 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 is one adjustment to the beginning fund balances that is different from the CAFR. The adjustment was to subtract the Fixed Asset balance of $10,069,527 from the Water Fund in order to reflect a more accurate cash fund balance. The current projected available General Fund Balance for June 30, 2012 is $2,692,408, a decrease of $194,797 from the projected fund balance of $2,887,205 published in the FY 2011-12 Budget. This fund balance is projected to be 20% of appropriations, which is above the City Council fund balance goal of 15%. The decrease in the projected fund balance is due to higher than expected expenditures in the prior year. 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 decrease in appropriations of $30,250; an increase of $60,329 in transfers in and a net decrease of $58,900 in revenue. Additional decreases in appropriations are requested in the Landscape Maintenance Fund ($loo), Parkside Assessment Fund ($400), Sewer Fund ($25,400) and the Water Fund ($11,200). An increase in appropriations is requested in the Lopez Fund ($22,000). Detailed descriptions of these requests are included in the Mid-Year Report and shown on Schedule A. 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 departmentldivision reports the work accomplished during the first half of the fiscal year toward an improved City government. Also reported is the progress toward those ongoing projects/work efforts that will continue into the remaining quarters. 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. Agenda Item 11.b. Page 2 CONSIDERATION OF MID YEAR BUDGET REPORT MARCH 27,2012 PAGE 3 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 minimurn 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. 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 22,2012. The Agenda and report were posted on the City's website on Friday, March 23, 2012. No public comments were received. Mid Year Budget Report Agenda Item 11.b. Page 3 City of Arroyo Grande Mid-Year Budget Report - 201l/2012 March 27,2012 City of Arroyo Grande Administrative Services Department -. MID-YEAR BUDGET REPORT 1 Ag e n d a I t e m 1 1 . b . Pa g e 4 City of Avvoyo Grande Mid-Year Budget Report . 2011/2012 March 27. 2012 FISCAL YEAR 2011-2012 Table of Contents Overview ............................................................................................................................................................................................ 3 Summary of Key Points ........................................................................................................... ...................................................... 3 Mid Year Budget Requests .............................................................................................................................................................. 4 General Fund Overview ................................................................... ................................................................................................. 8 General Fund Revenues ................................................................................................................................................................. 10 General Fund Expenditures .......................................................................................................................................................... 12 ....................................................................................................................................................................... Overtime Summary 13 .................................................................................................................................................................................... Other Funds 14 Schedules: A Unreserved Fund Balance Control-All Funds .................................................................................................... 16 General Fund . Fund Summary ........................................................................................................................... 18 .................................................................................................................................................... Management Reporting System 19 Ag e n d a I t e m 1 1 . b . Pa g e 5 City of Arroyo Grande Mid-Year Budget Report - 2011/2012 March 27,2012 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 llnks 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 2011-12 Fiscal Year against the FY 2010-11 figures. This information is provided in the following format: Schedule A: The starting point is the audited 2010-11 Fiscal Year ending fund balances, which is also the beginning Unreserved Fund Balances for the 2011-12 Fiscal Year. Combining the beginrung Unreserved Fund Balances with the estimated revenues, transfers, and appropriations adopted in the Annual Budget and the ISt 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, and planning) and is limited primarily by tax-generated revenues. Summary of Key Points The total Citywide Fund Balance reported at June 30, 2011 was $33,192,189. This is a decrease of approximately $825,000 compared to June 30, 2010. The beginning General Fund balance is $3,116,689, which was a decrease of $118,195 from the prior year and was 21% 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 is one adjustment to the beginning fund balances that is different from the CAFR. The adjustment was to subtract the Fixed Asset balance of $10,069,527 from the Water Fund in order to reflect a more accurate cash fund balance. Ag e n d a I t e m 1 1 . b . Pa g e 6 City of Arro yo Grande id-Year Budget ~ebort - 2011/2012 March 27,2012 The City Council has established an Undesignated General Fund Balance goal of 20°/o 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, 2012 is $2,692,408, a decrease of $194,797 from the projected fund balance of $2,887,205 published in the FY 2011-12 Budget. This fund balance is projected to be 20% of appropriations, which is above the City Council fund balance goal of 15%. The decrease in the projected fund balance is due to higher than expected expenditures in the prior year. 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 projected fund balance will also likely be impacted by expenses transferred from the Redevelopment Agency due to its dissolution, but these amounts have not yet been determined. The Management Reporting System Status Report is presented as a separate section at the end of this report. Tlus 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 tlus report. Departments have been asked to closely monitor their budgets and spend only what is absolutely necessary. Therefore, at this time, staff is only recommending minor adjustments to the General Fund Departmental budgets. General Fund Expenditures: City Clerk - The cost for cable casting meetings is being transferred from the PEG Fund to the General Fund in order to be compliant with Federal regulations. Staff is recommending that tlus begin April ISt and is requesting $8,750 for Ag e n d a I t e m 1 1 . b . Pa g e 7 City of Arroyo Grande Mid-Year Budget Report - 2011/2012 March 27,2012 the last quarter of the Fiscal Year. The entire annual amount will be included in the General Fund in Fiscal Year 12- 13. In addition, On February 14, 2012 the Council approved an increase of $25,000 for June election costs for the Police Station bond measure. At that time it was anticipated that the State Water measure would also be on the June election and the costs could be shared. However, the Water measure is being postponed at this time therefore an additional $12,000 is being requested for election costs. The total will come from Sales Tax funds that are currently budgeted for the Police Station CIP project. City Manager - Council approved an increase of $13,000 on January 24,2012 to pay for membershp costs for the San Luis Obispo County Economic Vitality Corporation (EVC), San Luis Obispo County Visitors' and Conference Bureau (VCB), and Arroyo Grande Valley Chamber of Commerce. City Council - On February 14,2012 the Council approved an increase of $5,000 for public education for the Police Station bond measure. Tlus amount will come from Sales Tax funds that are currently budgeted for the Police Station CIP project. City Attorney - Staff is requesting an increase of $10,000 for Human Resource contract assistance to address workload associated with ongoing personnel issues. Non-Departmental - Council approved the Local Sales Tax report on November 22,2011 which included $115,000 for Five Cities Fire Authority (FCFA) funding. Th~s reduces the amount budgeted in the General Fund for the FCFA payment by $115,000. Community Development - Staff is requesting an appropriation of $11,000 in order to hu-e a full-time Engineer. This appropriation would cover one month of salary and benefits for the remainder of the fiscal year, and any recruiting costs. Staff is proposing replacing two part-time positions with the full-time position. Staff will be including an increase of approximately $35,000 in the FY 2012-13 budget, which is the cost of the full-time position above the two part-time positions. However, it is anticipated that this amount will be charged to capital improvement projects for design and inspection. Therefore, there should be no net impact on the final budget. General Fund Revenues: Transfers (Personnel, Operating, and Cost Allocation) - When staff oripally prepared the FY 2011-12 Budget, the transfers were based on estimates from the prior year. Staff has had time to cakulate what the actual transfer Ag e n d a I t e m 1 1 . b . Pa g e 8 City of Arvoyo Grande Mid-Year Budget Re~ort - 201112012 March 27,2012 amounts should be. The net increase in transfers is $68,921. The majority of this increase is due to moving $36,929 that the City receives for CDBG administration and code enforcement from its own revenue line item to Personnel transfers and increasing Operating transfers by $42,000 for election costs. If these two costs were not included, actual transfers would be decreasing by approximately $10,000. Motor Vehicle License Fees (VLF) - A decrease of $46,000, due to the State Legislature's efforts to solve the State's budget problems all City VLF revenues have been sued to fund law enforcement grants. Lucia Mar Reimbursement - A decrease of $22,900 due to renegotiating the amount the School district pays towards the School Resource Officer position. In the past the school district paid for 50% of the School Resource Officer. The City has renegotiated this reimbursement to 40%. Transient Occupancy Tax - Revenues are higher than originally estimated. Staff is requesting an increase of $30,000 in hs revenue source. Telecommunication Site Leases - Staff is requesting that this revenue source be reduced by $5,000 due to renegotiating certain site leases and lowering the monthly lease amount. Other Funds: Landscape Maintenance Fund: Staff is requesting a decrease of $100 in transfers due to updating the transfer calculations. Local Sales Tax Fund: On November 22,2012, the City Council approved the Annual Local Sales Tax Appropriations and Allocations Report. This report increased capital transfers by $306,500, decreased operating transfers by $5,374, and increased operating expenses by $79,000. Parkside Assessment Fund: Staff is requesting a decrease of $400 in transfers due to updating the transfer calculations. In-Lieu Affordable Housing: Council approved an increase of $5,000 on January 24,2012 to contribute to the SLO Affordable Housing Trust Fund. Ag e n d a I t e m 1 1 . b . Pa g e 9 City of Arroyo Grande Mid-Year Budget Report - 2011/2012 March 27,2012 Other Funds (continued): Capital Improvement Program Fund (CIP): On November 22,2012, the City Council approved the Annual Local Sales Tax Appropriations and Allocations Report. This report increased various capital projects by $306,500. On February 14, 2012 the Council approved an increase of $30,000 for June election and public education costs for the Police Station bond measure. As mentioned under the City Clerk request, it was anticipated that the State Water measure would also be on the June election and the costs could be shared. However, the Water measure is being postponed at tlus time. Therefore, an additional $12,000 is being requested for election costs. The total of $42,000 will come from Sales Tax funds that are currently budgeted for the Police Station CIP project. Therefore the Police Station CIP project d decrease by $42,000. Sewer Fund: Staff is requesting a decrease of $25,400 in transfers due to updating the transfer calculations. Water Fund: Staff is requesting a decrease of $11,200 in transfers due to updating the transfer calculations. Lopez Fund: Staff is requesting an increase of $22,000 in transfers due to updating the transfer calculations. Ag e n d a I t e m 1 1 . b . Pa g e 1 0 City of Arroyo Grande Mid-Year Budget Report - 201l/2012 March 27,2012 General Fund Overview Shown below is an overview of the revenues, expenses, and transfers for Fiscal Years 2010-11 and 2011-12. Comparing the two fiscal years in ths summary format readily shows the impact of both increases and decreases in revenues and expenditures. Revenues decreased by $39,706 and expenditures increased by $437,164. General Fund FY 2010-11 FY 2011-12 Variance Revenues: Mid-Year Actual 4,011,328 3,967,129 (4.u 9 9) Mid-Year Transfers 1,161,148 1 ,I 65,641 4,493 Total 5,172,476 5,132,770 (39,70 6) Expenditures: Mid-Year Actual 6,350,412 6,787,576 437,164 Mid-Year Transfers - - - Total 6,350,412 6,787,576 437,164 Impact on Fund Balance $ (1,177,936) $ (1,654,806) $ (476,870) Ag e n d a I t e m 1 1 . b . Pa g e 1 1 City of Arroyo Grande Mid-Year Budget Report - 201l/2012 March 27,2012 Shown here is a graphc representation of the 2011-12 Fiscal Year revenues and expenditures, to date, compared with the amended budget includlnn the recommended Mid-Year adjustments. Transfers In and Transfers Out are included on this graph to present the total impact on the fund balance. General Fund Budget & Actual as of Dec. 31,2011 Budget Actual - Revenue/Transfers $12,988,692 $5,132,770 Operations 13,273,962 6,779,791 Equipment Purchases 118,011 7,785 Capital Transfers 10,000 0 Revenues Expenses I I 13,401,973 6,787.576 1 Actual YTD Budgeted Total Expenditures Change in Fund Balance ($ 413281 $ (1,654,806) 1 After Mid-Year adjustments are recorded, the June 30, 2012 fund balance in the General Fund will be approximately $2,692,408, if all budget projections are fulfilled. However, at June 30,2012, 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 10-11 - $114,501 more, FY 09-10 - $1,596,673 less, FY 08-09 - $547,n7 less, FY 07-08 - $737,598 less, FY 06-07 - $560,025 less). Ag e n d a I t e m 1 1 . b . Pa g e 1 2 City of Arroyo Grande Mid-Year Budget Report - 2013J12 March 27,2012 General Fund Revenues With half of the year complete, the total General Fund revenue is at 40%. 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 and Franchise Fee revenue only includes four months of revenue. Finally, the first half of the triple flip amounts for sales tax $378,020 and VLF $604,466 were not received untd January. The table shown below presents a comparison of the top eleven revenue accounts. Due to the decrease in the Motor Vehicle License Fee (VLF) revenue, staff will be replacing this revenue source with the Sales Tax - Safety revenue source (also known as Proposition 172 revenue) in future budget reports. Sales Tax - Safety is a one-half cent sales tax imposed by the Legislature and is to be used strictly for public safety services. Both revenue sources are shown on tlus report for comparison purposes. Because the top revenue sources account for approximately 72% of total General Fund revenues, changes here can have profound impacts. Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year Adual Title Budget Adual % Budget Adual % Change Sales & Use Tax Triple Flip - Sales Tax Sales Tax - Safety Property Tax Motor Vehicle License Fees Triple Flip - VLF Building Permits Children in Motion Franchise Fees Telecommunication Site Leases Transient Occupancy Tax Total Ag e n d a I t e m 1 1 . b . Pa g e 1 3 City of Arroyo Grande Mid-Year Budget Report - 2011/12 March 27,2012 Sales Tax - Sales tax is higher than the prior year due to an increase in sales activity; however the budget reflects tlus anticipated increase. Property Tax - Property tax is showing an increase and hs is also reflected in the current year's budget. Motor Vehicle License Fees - As mentioned earlier in this report, tlus revenue has been eliminated by the Legislature in order to fund law enforcement grants. Children in Motion - Th~s revenue is showing a decrease of $7,595 when compared to the prior year. However, this decrease was anticipated and is reflected in the decreased budget. Franchise Fees - Th~s revenue source is showing a decrease when compared with the prior year. The majority of hs decrease is due to receiving the November Waste Connections franchise payment of $11,846 in January. This revenue source is below 50% due to one-time payments from PG&E and So Cal Gas that are received in April. Staff will continue to monitor this revenue source to determine if an adjustment is required once the one-time revenues are received. Telecommunication Site Leases - This revenue source is showing a decrease when compared to the prior year. The reason for tlus decrease is due to timing. In the prior year, January payments of approximately $8,300 were received in December. Tlus year, due to the holidays and mandatory furloughs; revenues that were normally received at the end of December were not received until City Hall reopened in January. The remaining difference is due to renegotiating certain site leases and reducing the monthly lease amounts. Transient Occupancy Tax - Tlus revenue is showing an increase of approximately $47,000 when compared to the prior year. Staff is requesting an increase in this line item of $30,000 and will continue to monitor this revenue source to determine if additional increases should be requested in the 3rd Quarter. All other variances are within normal ranges. Ag e n d a I t e m 1 1 . b . Pa g e 1 4 City of Arroyo Gvande id-~ear~ud~et ~eport - 201l/l2 March 27,2012 General Fund Expenditures Most departmental expenses are under the 50% budget mark with total Fiscal Year 2011-12 expenses at 51% of budget. Individual department/division differences between the current and prior fiscal year are highlighted in the table shown on the next page. This fiscal year, there is an approximate $437,164 increase in General Fund expenditures over the previous fiscal year. Wd-Year Current Fiscal Year Mid-Year Prior Fiscal Year Actual Title Budget Actual % Budget Actual % Change City Manager Legislative & Information Svcs Retirees City Attorney Administrative Services Community Development IT Non Departmental Pol ice Fire Builhng & Life Safety Engineering Recreation and Maintenance Svcs Total City Manager - the decrease of $15,820 is due to the increased public relations cost for the Centennial Celebration in the prior year and a decrease in City Council medical costs in the current year. City Attorney - the prior year was higher due to ongoing personnel litigation. Ag e n d a I t e m 1 1 . b . Pa g e 1 5 City of Arroyo Grande Mid-Year Budget Report - 201l/l2 March 27,2012 Administrative Services - the $10,116 increase in this department is due to the retirement of the Accounting Supervisor in July and the cost for the Other Post Employment Benefits (OPEB) study that was prepared in November. Both of these costs were anticipated and were reflected in the budget. Non-Departmental - the $450,347 increase is due to the Five Cities Fire Authority (FCFA) quarterly payments of $381,083 being paid from ths department. At midyear, the City had made three quarterly payments for a total of $1,143,249 whereas in the prior year only two quarterly payments had been made at a total of $694,245. ne reason for the extra payment this fiscal year is that the FCFA established a separate checking account and in order to have a consistent cash flow, all quarterly payments are made at the beginning of each quarter. Police - The majority of this increase is due to filling existing staff vacancies and the retirement of one Commander. Fire - The costs in the prior year for ths department includes the expenses incurred before the FCFA was formed on July 9, 2010. The costs listed in the current year are for the City's Emergency Operating Center (EOC) which is still administered by the FCFA. Building and Life Safety - the majority of this decrease is due to the part-time office assistant position charging to the Community Development department in error. This has now been corrected. In addition, contractual services expenditures have decreased due to a decrease in building projects when compared to the prior year. Engineering - the increase in this department is due to a decrease of staff time being charged to CIP projects in the current year. Recreation and Maintenance Services - the majority of tfus increase is due to an increase in building maintenance costs. All other variances are within a normal range. Overtime Summary: Mid Year FY 2011-12 Department July Aug Sept Oct Nov Dec Total Police $ 25,276 $ 16,370 $ 24,590 $ 20,265 $ 19,770 $ 17,264 $ 123,535 Fire 27,929 11,457 20,340 16,438 18,270 35,121 129,555 Rec & Maint Svcs 4,203 2,908 2,7 13 2,829 3,519 3,657 19,829 Total $ 57,409 $ 30,735 $ 47,644 $ 39,532 $ 41,559 $ 56,011 $ 272,919 Ag e n d a I t e m 1 1 . b . Pa g e 1 6 City of Arroyo Grande Mid-Year Budget Report - 201l/l2 March 27,2012 OTHER FUNDS Local Use Tax Fund (Fund 218) Ths 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 37%. At this time this revenue source is showing a 4% increase over the budget. The estimated fund balance in this fund is $338,789, which is 10% of appropriations if all budgeted funds are expended. However, staff believes the fund balance wlll remain above 15% when factoring project savings and project delays. Redevelopment Agency (Fund 284) 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. At this time, it is unclear how the dissolution of the RDA will impact the City's General Fund. The City as the Successor Agency is eligble for reimbursement of administration costs; however, the exact amount that the City will receive is unknown at this time. In addition, the General Fund will receive additional property taxes that in the past had gone to the RDA but again the amount is unknown. Staff will be working with the County of San Luis Obispo Auditor/ Controller's office over the next few weeks to determine these amounts. Staff will adjust the RDA and RDA Set-Aside Funds in the 3rd Quarter report. CIP (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. Sewer Fund (Fund 612) The Sewer Fund is projected to have a fund balance of approximately $147,077 (Schedule A). Staff is requesting a decrease of $25,400 in appropriations. The details for this appropriation are listed on page 7 of this report under Mid Year Budget Requests. Ag e n d a I t e m 1 1 . b . Pa g e 1 7 City of Arroyo Grande id-~ear~ud~et ~eport - 201V12 March 27,2012 Water Fund (Fund 640) The Water Fund is projected to have a cash fund balance of approximately $1,489,350 at June 30, 2012. There are several large water projects that are being funded by the Water Fund, such as the construction of Reservoir No. 6 ($339,545), El Carnino Real rehabilitation ($413,000), Alpine Street Waterline improvements ($86,116) and the waterline upgrade on Bell and Faeh ($250,000). In the past, staff was able to use development impact fee revenue to help offset these capital improvement costs; however, with the reduction in development, these fees have decreased dramatically. Staff is requesting a net decrease of $11,200 in appropriations. The details for these appropriations are listed on page 7 of this report under Mid Year Budget Requests. 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 2011/12 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. Tlus provides a look at what the individual departments 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. Ag e n d a I t e m 1 1 . b . Pa g e 1 8 City of Arroyo Grande Fund Balance - Control All Funds Operating Budget 2011/12 Adopted Budget Schedule A Estimated Estimated Total Total Unreserved Fund Balance July 1,2011 General Fund 010 General Fund: $3,116,689 $10,761,510 ($1 77,447) $2,404,629 $10,000 $78,545 $13,428,698 ($104,270) $2,692,408 Special Revenue Funds: 210 Fire Protection lmpact Fees $43,963 $16,150 $0 $0 $0 $0 $0 $0 $60,113 211 Public Access Television 67,016 38,500 0 0 0 0 36,000 0 69,516 212 Police Protection Impact Fees 63,575 1,300 0 0 0 0 0 0 64,875 213 Park Development Fees 597,408 29,000 0 0 199,781 0 0 0 426,627 214 Park Improvement Fees 348,016 17,000 0 0 311,439 0 0 0 53,577 215 Recreation Community Center 45,143 1,500 0 0 15,000 0 0 0 31,643 216 Grace Lane Assessment District 49,893 9,700 0 0 0 0 5,000 0 54,593 217 Landscape Maintenance District 25,746 6,000 0 0 3,200 0 2,600 0 25,946 218 Local Use Tax Fund 2,176,103 1,669,100 0 0 3,293,251 0 134,163 79,000 338,789 219 Parkside Assessment District 285,297 58,100 0 0 3,200 0 3,600 0 336,597 220 Streets 0 468,500 0 272,025 0 0 740,525 0 0 221 TraFfic Congestion Relief 0 500 0 0 0 0 0 0 500 222 TraFf ic Signal 492,161 12,500 0 0 0 0 0 0 504,661 223 TraFfic Circulation 25,047 200 0 0 ' 0 0 0 0 25,247 224 Transportation Facility Impact 2,770,287 40,000 0 0 1,475,165 0 0 0 1,335,122 225 Transportation 0 108,365 70,526 0 168,800 0 10,000 0 91 226 Water Neutralization Impact 421,764 37,600 0 0 45,000 0 181,100 0 233,264 230 Construction Tax 3,198 0 0 0 0 0 0 0 3,198 231 Drainage Facility 461 0 0 0 0 0 0 0 461 232 In-Lieu Affordable Housing 978,838 300 0 0 0 11,232 0 5,000 962,906 233 In-Lieu Underground Utility 196 0 0 0 0 0 0 0 196 241 Water Availability Fund 1,726,251 35,000 0 0 289,579 0 0 0 1,471,672 250 CDBG Grant Funds 0 0 171,063 0 36,929 0 0 134,134 0 271 State COPS Block Grant 106,417 500 100,000 0 0 88,457 0 100,000 18,460 284 Redevelopment Agency 225,477 1,314,000 0 0 0 829,560 0 188,127 521,790 285 Redevelopment Set Aside 1,872,061 354,000 0 0 38,100 892,877 214,611 0 1,080,473 Total Special Revenue Funds $12,324,318 $4,217,815 341,589 $272,025 $6,401,234 $992,566 ' 2,157,159 $318,134 $7,286,654 Original Adjustment Operating Operating FY 2010-11 Budgeted Adjustments to Revenues to Revenues Transfer ln Transfer Out Carryovers Appropriations Appropriations Unreserved Fund Balance June 30,2012 Ag e n d a I t e m 1 1 . b . Pa g e 1 9 City of Arroyo Grande Fund Balance - Control All Funds Operating Budget 2011/12 Adopted Budget Schedule A Estimated Estimated Total Total Unreserved Fund Balance June 30,2012 Unreserved Fund Balance July 1,2011 Capital Proiect Funds: 350 Capital Improvement Fund $0 $604,000 $2,642,7l9 $7,797,739 $0 $8,480,958 $2,159,000 $404,500 $0 Total Capital Project Funds $0 $604,000 $2,642,7l9 $7,797,739 $0 $8,480,958 $2,159,000 $404,500 $0 Enterprise Funds: 612 Sewer $423,383 $928,000 $0 $0 $882,806 $0 $321,500 $0 $147,077 634 Sewer Facility 360,138 12,000 0 0 100,000 0 0 0 272,138 640 Water Fund 2,394,293 3,488,400 0 0 2,225,411 15,721 2,127,211 25,000 1,489,350 641 Lopez Water 3,569,054 2,504,000 0 0 365,300 0 2,738,305 0 2,969,449 642 Water Facility 721,359 25,000 0 0 271,389 0 0 0 474,970 Total Enterprise Funds $7,468,227 $6,957,400 $0 $0 $3,844,906 $5,187,016 $25,000 $5,352,984 $15,721 Trust and Agency Fund: 751 Downtown Parking $213,428 $9,300 $0 $0 $218,253 $0 $3.500 $0 $975 Total Trust & Agency Fund $213,428 $9,300 $0 $0 $218,253 $0 $3.500 $0 $975 Grand Total All Funds $23,122,662 $22,550,025 $2,806,861 $10,474,393 $10,474,393 $9,567,790 $22,935,373 $643,364 $15,333,021 Original Adjustment Operating Operating FY 2010-11 Budgeted Adjustments to Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations Ag e n d a I t e m 1 1 . b . Pa g e 2 0 GENERAL FUND - FUND SUMMARY FUND: 010 GENERAL FUND FISCAL YEAR 2010-11 BIENNIAL BUDGET 2008-09 2009-10 ORIGINAL AMENDED ESTIMATED 2011-12 2012-13 lTEM ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance $ 2,042,389 $ 2,191,544 $ 3,234,884 $ 3,234,884 $ 3,234,884 $ 3,116,689 $ 2,692,408 Revenues: Revenues Transfers In Use of Reserves Total Revenues 14,322,288 14,061,667 . 13,208,870 13,803,485 13,764,898 13,338,692 13,211,220 Expenditures: Salaries and Benefits 10,848,356 10,289,661 10,970,320 8,884,473 8,486,398 8,934,739 9,333,900 Current Expenses 2,378,506 2,362,704 2,584,900 4,212,153 4,709,783 4,173,123 4,171,050 Debt Service 122,501 133,750 160,180 160,180 133,750 177,100 195,650 Equipment Replacement 718,886 232,211 118,480 986,393 142,750 118,011 66,675 Transfers Out 104,882 Capital Transfers 451,000 410,413 10,000 Total Expenditures 14,173,131 13,018,326 13,833,880 14,694,200 13,883,094 13,412,973 13,767,275 Total Operating Lncreases (Decreases) 149,155 1,043,340 (625,010) (890,715) (118,196) (74,281) (556,055) Audit Adjustments to Fund Balance Use of Reserves (350,000) (350,000) Total Adjustments to Fund Balance Ending Fund Balance 2,191,544 3,234,884 2,609,874 2,344,169 3,116,689 2,692,408 1,786,353 Reserve for Cany-Over of Appropriations (95,658) (82,262) Available Fund Balance Ag e n d a I t e m 1 1 . b . Pa g e 2 1 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1, 201 1 - December 31,201 1 FUND: GENERAL FUND DEPARTMENT: CITY ADMINISTRATION Mid-Year Accomplishments Completed formation of the Five Cities Diversity Coalition. Developed and obtained approval of strategies to address projected budget shortfall. Developed proposal to seek voter approval for purchase of State water. Developed proposal for Police Station bond measure and educational materials. Coordinated dissolution of the Redevelopment Agency. Coordinated operational assessments of City Hall, Recreation, and Maintenance Services. Drafted a Request for Proposals for engineering services. Coordinated efforts for pursuing State funding for the Brisco Road Interchange improvement project. A long list of successful Centennial Celebration activities and event were completed. Key Issues 1 Work Efforts In Progress Work is under way to obtain approval from the County for PG&E underground utility credits to underground all utilities on East Grand Avenue. A strategy and appraisal has been completed to pursue development of a transitional housing project on Halcyon Road, which is now contingent upon determination of how housing funds are addressed in dissolution of the RDA. Update of the Administrative Policy Manual is under way. A Budget Advisory Corr~mittee has met twice. Labor negotiations are being initiated. Agenda Item 11.b. Page 22 m MANAGEMENT REPORTING SYSTEM MID-YEAR July 1, 2011 - December 31, 2011 FUND: GENERAL FUND DEPARTMENT: LEGISLATIVE AND INFORMATION SERVICES Mid-Year Accomplishments Upgraded LaserFiche document imaging system and licensing for use by all City Hall departments as part of the scanning project. Completed comprehensive update of the Citywide Records Retention Schedule to reflect City's new organizational structure. Coordinated two (2) publications of the City newsletter, Staqecoach Express, which were mailed to all City residences and businesses. Administered oaths of office to newly appointed staff and advisory body members who assumed office on various City commissions, boards, and committees. Distributed Semi-Annual Campaign Statement forms to current officeholders. Processed City documents (deeds, contracts, agreements, resolutions, ordinances, minutes) in a timely manner. Met all legal publishing and posting requirements. Updated government access channel with information provided by City departments on events, programs, and services. Key Issues I Work Efforts In Progress Prepare election documents required for placement of a measure on the June 2012 ballot relating to the Police Station project. Agenda Item 11.b. Page 23 Monitor and follow up on required tasks and deadlines related to the June 2012 Special Election. Distribute Annual Statement of Economic Interests Forms to all elected and appointed officials of the City, including members of the City Council, commissions, boards, committees, staff, and consultants. Coordinate publication of two (2) issues of the City newsletter, Stagecoach Express, for distribution to community. Complete next Mur~icipal Code Supplement to incorporate seven (7) Ordinances adopted by the Council since June 201 1. Coordinate upgrade of Council Chambers cablecasting and audio system. Implement City Council meeting audiolvideo streaming of meetings on website. Assist in development of Ordinances to update the Municipal Code to reflect City organizational changes. Begin planning for the November 2012 General Municipal Election. Continue in-house training of staff on use of Laserfiche document imaging system. Coordinate annual records destruction day pursuant to the Records Retention Schedule. Update the Commissioner's Handbook. Update Department Procedural Manual. Agenda Item 11.b. Page 24 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1, 2011 - December 31, 2011 FUND: GENERAL FUND DEPARTMENT: LEGISLATIVE AND INFORMATION SERVICES DIVISION: INFORMATION TECHNOLOGY Mid-Year Accomplishments lnstalled new firewall at City Hall and configured appropriate security policies. Developed secure VPN (Virtual Private Network) mobile user access. lnstalled and configured new Laserfiche production and web access servers at City Hall. Worked with vendor to implement City Hall Laserfiche Avante upgrade. lmplemented Vipre Enterprise anti-virus solution. Removed Nortel Passport 8006 core network switch, and relocated fiber connections. lnstalled Faronics Powersave software on City, Police, and Five Cities Fire.Authority (FCFA) networks to meet energy savings requirement. lnstalled and configured dedicated Charter Communications broadband connection at the Police Department. lnstalled new firewall at Police Department, and configured appropriate security policies. lmplemented Mobile Data Computer solution at the Police Department. lmplemented new in-car surveillance system at the Police Department. Relocated all network and server equipment at the Police Department. lmplemented broadband enhancements to support City-wide video surveillance system. lnstalled new Police Dept Laserfiche server Agenda Item 11.b. Page 25 Key Issues I Work Efforts In Progress Complete CDDNVMS Business License implementation. Implement an enterprise level data backup solution. Design and implement mobile device solution. Complete FY 1 1-1 2 workstation replacements. Implement network monitor and alerting software solution. Complete web access portion of City Laserfiche upgrade project. Complete in-field reporting portion of Police Mobile Data Computer implementation. Work with vendor to install Police Dept Laserfiche upgrade. Work with vendor to install Police Dept PsNet dispatch system upgrade. Test for MCSE certification. Attend Microsoft Exchange (email) training to enhance the level of administration and support to the City. Implement social media capability. Agenda Item 11.b. Page 26 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1,201 1 - December 31,201 1 FUND: GENERAL FUND DEPARTMENT: ADMINISTRATIVE SERVICES Mid-Year Accomplishments Completed the Fiscal Year 2010-1 1 audit. Corr~pleted the California Street Report and California Transportation Report. Completed the State Controllers Report for the City and the Redevelopment Agency. Completed the Statement of Indebtedness for the Redevelopment Agency. Prepared the City's fourth Comprehensive Annual Financial Report. Prepared Continuing Disclosure statements for the Lopez bond and the RDA tax allocation bonds. Prepared the GANN appropriation limit calculation. Updated the City's investment policy. Updated the City's Cost Allocation plan. Completed the CJPlA underwriter's report, property insurance update, and criminal bond renewal. Calculated the assessments for the Landscape maintenance district, Grace Lane assessment district and Parkside assessment district. Prepared the annual TDA claim form. Calculated the Fire GO Bond Tax levy. Prepared the State Cops reporting forms. Prepared the Prop 1 B annual report. Agenda Item 11.b. Page 27 Completed the Public Safety - Maintenance of Effort report. Prepared the Fiscal Year 201 1-12 & 2012-1 3 Biennial Budget. Completed an OPEB study. Prepared documents for dissolution of the Redevelopment Agency. Kev IssuesMlork Efforts In-Progress Update the City's purchasing policy. Update the financial section of the Administrative Policy Manual. Update the FY 2012-13 Biennial Budget. Perform internal audits of City departments. Assist with employee negotiations. Agenda Item 11.b. Page 28 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1,2011- December 31,2011 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: CHILDREN IN MOTION Mid-Year Accomplishments Children in Motion completed a successful Summer Day Camp once again at Ocean View Elementary School. Approximately 30-50 children attended daily. Three successful weeks of Winter Camp were completed at the Elm Street Community Center with an average daily attendance of 30-45 children. Staff continues to partner with the CAPS program (formerly known as EOC) to provide childcare for parents who need financial help. Currently, 7 children are enrolled in the program. All necessary staff has attended harassment, blood borne pathogens, and fire extinguisher training. The program partnered with Rontal, Salon in August to run a cut-a-thon fundraiser which raised $823. Key lssuesMlork Efforts In-Progress Staff has begun the spring break and summer day camp planning process. In April, all necessary staff will completin re-certification of First Aid and CPR. Staff continues to look for ways to eliminate the City's subsidy of the program, while maintaining a high level of quality childcare. Staff is once again working with the official United States Olympic Committee to provide an Olympic guest speaker in summer. Agenda Item 11.b. Page 29 MANAGEMENT REPORTING MID-YEAR SYSTEM July 1, 201 1 - December 31, 201 1 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: GENERAL RECREATION Mid-Year Accomplishments Conducted the Summer and Winter Playground Programs at Elm Street Park with an average of 30 children participating daily. Conducted 21 field trips to local businesses. Conducted Winter Break Program at Elm Street Park with an average of 25 children participating daily. The City of Arroyo Grande and Woman's Club Community Center has hosted 285 groups totaling nearly 1 1,135 participants. The Elm Street Community Center has hosted 298 groups and approximately 7,907 participants. Staff coordinated completion of two Eagle Scout projects for improvements at the Woman's Club Community Center. Prepared a revised fee schedule for the Woman's Club Community Center, which was adopted by the City Council. Key IssuesMlork 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. Staff is working with one more Boy Scout to complete an Eagle Scout project at the Woman's Club Community Center. Agenda Item 11.b. Page 30 m MANAGEMENT REPORTING SYSTEM MID-YEAR Julv 1, 201 1 - December 31, 201 1 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: RECREATION PROGRAM: RECREATION ADMINISTRATION Mid-Year Accomplishments Coordinated projects with Arroyo Grande In Bloom and Tree Guild of Arroyo Grande. Coordinated Harvest Festival events with the Harvest Festival Organizing Committee. Completed and distributed the fall and the WinterISpring 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. Helped coordinate the City's Centennial Celebration. Key IssuesMlork Efforts In-Pronress Repair Elm Street Community Center roof. Coordinate the 2012 Summer Concert Series with the VIA. Install centralized irrigation system. Continue design and bidding for lighting 1.1pgrades at the Soto Sports Complex. Complete renovations to the Short Street restroom. Complete the tree inventory and have staff trained on use of the TreeKeeper 7 system. Agenda Item 11.b. Page 31 MANAGEMENT REPORTING SYSTEM MID-YEAR Julv 1, 201 1 - December 31,201 1 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: SPECIAL PROGRAMS Mid-Year Accomplishments: Held a Summer Carnival on August !jth with 11 5 children participating. Held a co-sponsored BBQ that raised over $500 for Children's Services. Conducted the Annual Halloween and Haunted Maze on October 2gth with over 800 participants, which was co-sponsored with Boys & Girls Club of South SLO County. Held a co-sponsored Cut-A-Than that raised over $800 for Children's Services. Worked with the Arroyo Grande Lions Club and Hancock College Cross Country team to organize the 34th Annual Turkey Trot Fun Run with 219 participants. Organized Harvest Festival Activities, including the Diaper Derby and Chili-Fest. The Parent's Night Out program ran successfully this fall with an average of 15 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 28th. Conducted the Holiday Decorating Contest for business and residences. Organized a variety of youth and adult contract classes, including youth and adult art, youth and adult dance, soccer, tennis, basketball, baton, Youth Theater, dog obedience and photography. Completed the Summer Softball League with 61 teams. Corr~pleted new Fall Softball League with 10 teams. Completed Summer and Fall Ad1.1lt Basketball Leagues with 37 teams. Organized aspects of Five Cities Youth Basketball League including conducting registration and processing payments for 800 local youths participants, recruited Agenda Item 11.b. Page 32 and trained 52 volunteer referees, coordinated gym reservations and game schedules for 11 9 teams, and inventory and order league supplies. Key lssuesMlork Efforts In-Progress The department is planning the Volunteer Banquet, the Annual Egg Hunt and Festival, a BBQ Fundraiser, a Trike-A-Thon Fundraiser, and a Summer Youth Activity Faire. Organize and conduct the Youth Wrestling Program. Organize and conduct the WinterISpring Adult Basketball League. Organize and conduct the Spring Adult Softball League. Agenda Item 11.b. Page 33 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1, 201 1 - December 31,201 1 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: PRE-SCHOOL Mid-Year Accomplishments Conducted the Summer Pre-School Program with an average of 22 children participating in two three week sessions. Operated the Fall Pre-School Program with 78 students. Took 72 preschoolers on a field-trip to Holloway's Tree Farm ir~ December. 17 preschoolers and Children In Motion students participated in the Holiday Parade in the Village of Arroyo Grande. Key lssuesNVork Efforts In-Progress All staff will complete or re-certify in CPR and First Aid training in spring. Staff is currently working on fund raising activities to support children's services. Agenda Item 11.b. Page 34 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1,2011 - December 31,201 1 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: PARKS Mid-Year Accomplishments Worked with various volunteer groups, including Arroyo Grande in Bloom, Arroyo Grande Tree Guild, Boy ScoutsIEagle Projects, and the Five Cities Dog Park Association on special projects. Performed irrigation installations and repairs. Emptied 143 trash cans twice per week. Watered 52 pots twice each week. Watered 30 street trees weekly. Mowed 32 acres of turf each week. Performed inspections of more than 40 privately owned trees Mounted banners and street light banners for the Centennial Celebration, Harvest Festival, and winter in the Village. Installed concrete pads and memorial benches at Heritage Square Park. Coordinated the inventory of City owned trees with the contractor, Davey Resource Group. Agenda Item 11.b. Page 35 Assisted with the Recreation Division's Summer Carnival, Harvest Festival, and Halloween Carnival and Turkey Trot activities, Soto Sports Complex - Cops 'N Kids Day and Rotary Bandstand Concerts for the Village Summer Concert Series. Continued implementation of City water saving procedures. Kev Issues 1 Work Efforts In Proqress Complete pruning of City trees on City truck routes. Completion of City-wide tree inventory and undergo training for use of the associated software. Agenda Item 11.b. Page 36 MANAGEMENT REPORTING SYSTEM MID-YEAR July I, 201 I - December 31,201 I FUND: GENERAL FUND DEPARTMENT: PARKS, RECREATION AND FACILITIES DIVISION: SOT0 SPORTS COMPLEX Mid-Year Accomplishments a Prepped fields and provided maintenance for adult softball, Babe Ruth Baseball, Adult Baseball, Little League Baseball, and girls softball. and Sober Softball tournaments, and two AYSO soccer camps, AYSO tournament, Cops N Kids Field Day. Repaired banks and renovated and hydroseeded IkedaNolunteer Fields. Replaced transformer, lights, and installed bird prevention spikes on all light poles at the tennis courts. Maintenance and washing of courts and surrounding areas. a Re-roofed Pilg and Campbell fields score booths. Performed over 667 field preparations for softball, soccer, football games, and layouts. Weekly line painting, pumping excess water off fields to ensure scheduling. a Organized and improved yard bull pen. Key Issues I Work Efforts In Progress a Complete renovations to Pilg, Campbell, Porter, Don Roberts and Santos small lawns and turf areas. Agenda Item 11.b. Page 37 MANAGEMENT REPORTING MID-YEAR SYSTEM July 1,201 1 - December 31,201 1 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: 5 CI'TIES YOUTH BASKETBALL LEAGUE Mid-Year Accomplishments a Registered 102 teams with 870 participants. a Coordinated with Nipomo Recreation for game scheduling to include an additional 17 team with 128 players. a Prepared game schedules for the league season (595 games). a Recruited, trained and assigned 52 volunteer referees. a Completed referee and gym monitor schedules. a Collected $57,640 in fees. a Completed team and individual photos. a Completed the first 285 games of the season including daily preparation of score sheets. Kev Issues 1 Work Efforts In Progress a Preparation of the end of the season tournament schedule for 97 teams playing a total of163 games. a Distributing tournament schedules, photo packets and sponsor plaques. a Continuing preparation of referee schedules. a Preparation for tournament finals and awards ceremony. Agenda Item 11.b. Page 38 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1,201 1 - Decern ber 31,201 1 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: GOVERNMENT BUILDINGS Mid-Year Accomplishments Completed over 50 work orders for service to various City facilities. Performed roof repairs at various buildings including City Hall, Police Station and Council Chambers. Repaired air conditioners at the Police Station, City Hall, Elm Street Center and Council Chambers. Completed plumbing and electrical repairs at various City buildings. Removed and installed two heatinglair conditioning units on roof top at the Police Station. Also replaced one at the Council chambers. Installed new floor and storage shelves upstairs at the Council Chambers. Refinished wood floor, installed new refrigerator, drinking fountain, painted, replaced restroom urinals and fixtures, at the Woman's Club Community Center. Installed new water heater, reverse osmosis water system, painted, replaced restroom fixtures and vinyl floors at the Elm Street Community Center. Performed maintenance on electrical systems and lighting including upgrades and replacements. Performed parking lot security lighting repairs. Agenda Item 11.b. Page 39 Key IssuesMIork Efforts In-Progress Continue coordination of floor and carpet cleaning. Get the overhead fans at City Hall into working order. Agenda Item 11.b. Page 40 MANAGEMENT REPORTING SYSTEM MID-YEAR Julv 1, 201 1 - December 31,201 1 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: AUTOMOTIVE SHOP Mid-Year Accomplishments At Mid-Year, the Automotive Shop has carried out the following services: Services (lube, oil, filter, safety insp.) Tune Up (scope, spark plugs, rotor, cap General (mechanical i.e., pumps, cables) Electric (starter, alternator, wiring) Brake Repair Warranty Repair Transmission Service and Repair Tire Services (replacing, mount & balance) Tire Repair Pre Trip Check Smog Certificates Fuel Island Maintenance Fleet Retrofitting per ARB requirements & regulations Key Issues 1 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. Agenda Item 11.b. Page 41 Installation of card reader fuel dispenser Maintenance on new card & key fuel dispenser Vehicle & equipment retrofit for diesel particulate matter control Agenda Item 11.b. Page 42 MANAGEMENT REPORTING SYSTEM MID-YEAR Julv 1, 201 1 - December 31,2011 FUND: GENERAL FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: STREETS Mid-Year Accomplishments 22 Concrete Replacement projects. Completed annual cleaning of Tally Ho and Meadow Creeks. Continued with asphalt grinding and paving of city roads (10,000 sq. ft.). Key Issues I Work Efforts In Proqress Continuing with concrete replacement. Asphalt grinding & repairs to roads. Annual sign program. Painting red curbs, sign poles, and pavement markings citywide. Bi-annual stripping of the City. Agenda Item 11.b. Page 43 MANAGEMENT REPORTING SYSTEM MID-YEAR FUND: SEWER FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: UTILITIES I SEWER MAINTENANCE Mid-Year Accomplishments Completed Problem Sewer Main Cleaning Program. Root foamed sewer mains on Eman Court easement and Arroyo Grande Creek easement. Completed the quarterly cleaning of lift stations 1-7. Continued the Fats, Oils & Grease (FOG) Program with inspections of commercial businesses. Replaced a100' section of Corp Yard sewer lateral. Key Issues I Work Efforts In Progress Lift Station No. 3 replacement. Sewer Master Plan update. Replace sewer cleaning truck. Agenda Item 11.b. Page 44 MANAGEMENT REPORTING SYSTEM MID-YEAR Julv 1,201 1 - December 31, 201 1 FUND: WATER FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: WATER ADMINISTRATION Mid-Year Accomplishments Completed 193 Service Requests. Completed 292 Service Orderslopen & Close. Completed 152 USA Marking requests. Adopted revised water conservation ordinance. Adopted water efficient landscape ordinance. Completed the 2010 Urban Water Management Plan Update. Key Issues I Work Efforts In Prowess Phase II of the Water Conservation Program. Began school education program for water conservation. Complete water master plan update. Northern Cities Management Area ProjectslMeetings. Zone Ill ProjectslMeetings. Plumbing Retrofit Program Phase I. Agenda Item 11.b. Page 45 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1, 201 1 - December 31,201 1 FUND: WATER FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: UTILITIES I WATER DISTRIBUTION Mid-Year Accomplishments Replaced two (2) old water services citywide. Repaired five (5) water services citywide. Replaced three (3) water main valves. Completed reservoir six, Oro booster pump structure. Repaired four (4) broken water mains. Repaired four (4) water pumps. Converted 1,500 water meters to "touch read meters". Agenda Item 11.b. Page 46 MANAGEMENT REPORTING SYSTEM MID-YEAR Julv 1, 201 1 - December 31, 201 1 FLIND: WATER FUND DEPARTMENT: RECREATION AND MAINTENANCE SERVICES DIVISION: UTILITIES I WATER PRODUCTION Mid-Year Accomplishments Pumped a total of 214 acre-feet of well water July 1'' through December 31" Replaced roofing on well 4 control room building. Replaced the pump on well #9. Kev Issues I Work Efforts In Progress Well #I I Easemenwater Rights Wells 1 and 4 SCADA System upgrade. Agenda Item 11.b. Page 47 m MANAGEMENT REPORTING SYSTEM MID-YEAR Julv 1, 201 1 - December 31,201 1 FUND: GENERAL FUND DEPARTMENT: POLICE Mid-Year Accomplishments Response Times - During this time period, Police Department response times for Priority I calls averaged 2 minute and 57 seconds. Priority 2 calls averaged 3 minutes and 38 seconds. The reported national average is 8 minutes. Calls for Service - Calls for service in this time period decreased by 8% over 2010. Arrests - Arrests in .this time period decreased by 3.5% over 201 1. Performance Evaluation Committee - Work continues on improving the evaluation process in order to identify both department and peer standards. A draft document is currently pending final approval by management and the AGPOA. Neighborhood Services Technician - Completed the selection process and initial training of the Neighborhood Services Technician. The position now tracks, manages and enforces code enforcement issues and parking concerns. Operation Medicine Cabinet - During this time period nearly 500 pounds of prescription drugs were recovered - one of the highest amount county-wide. Completed design and delivery of in-house supervisor-management mentoring program along with a course on "Strength Based Supervision" presented by Kimberely Miller PhD. Agenda Item 11.b. Page 48 Promotional - Designed and implemented model Commander and Sergeant promotional processes in the Department designed, facilitated and supervised by Fred Rainguet, PhD. University of Colorado, Graduate School of Public Administration. Recruitment - A recruitment process for Police Officer was launched that resulted in nearly 100 applications. New Officers Foster, Doherty and Perez were hired and began their Field Training Program. Centennial Celebration - Successfully managed public safety issues during this major special event. The celebration was completed with no significant public safety concerns. Completed design and enhancement of the police firearms range. Grants - Successfully managed the county-wide $450,000 "Avoid the 14" Office of Traffic Safety DU I Grant. Coordinated four county-wide checkpoints. DUI 1 Command Trailer - Completed the up fitting of the 24' customized DUI Checkpoint 1 Command trailer funded by the DUI grant. The trailer and support lighting is valued at more than $35,000 and transfers to the City at no cost upon completion of the grant program. Canine Program - Both canines completed both protection and narcotics certification. This program was supported by community based fundraising efforts that resulted in nearly $50,000 raised for the canine program. Special Events - Managed public safety efforts at Harvest Festival; Arroyo Grande Valley Car Club Show; Halloween in the Village, Christmas Parade and the above mentioned Centennial Celebration. Cops and Kids - Hosted and participated in the 18'~ Annual Cops and Kids Field Day in Soto Park. This county-wide event was attended by more than 500 children. Investigations - Successfully investigated the Cross Burning Case involving almost 3,000 hours of investigative effort by the department and over 5,000 hours when coupled with other law enforcement agencies. The investigators and patrol officers made more than one hundred (100) field contacts, resultiqg in nearly fifty (50) interviews. Twenty-nine (29) record preservation actions were initiated and nine (9) search warrants were written and executed. The net result of all the investigative efforts generated a case report that is more than eight hundred (800) pages in lerrgth. The four arrested suspects are currently awaiting trial. Agenda Item 11.b. Page 49 Kev Issues 1 Work Efforts In Progress Upgrade Communication Systems - The department is continuing to upgrade the emergency communications system through state funding. A new server and software was installed and additional upgrades are scheduled for 2012. Mobile Data Terminals - As part of the communications upgradce project, mobile data terminals have been installed in all patrol vehicles. The project is funded through the existing COPS program funds. Website Expansion - The department is continuing the process of expanding the website to include electronic citizens complaint procedures as recommended by the Grand Jury. Police Consolidation - Much work has been done in the area of consolidation of law enforcement services with Grover Beach. Cost estimates have been developed for submission to Grover Beach for initial consideration. Work is continuing on the new Police Facility project. Agenda Item 11.b. Page 50 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1, 201 1 - December 31, 201 1 FLIND: GENERAL FUND DEPARTMENT: COMMUNITY DEVELOPMENT DIVISION: PLANNING AND ECONOMIC DEVELOPMENT Mid-Year Accomplishments Processed through approval one conditional use permit (Veterinary clinic on E. Grand Ave.), three lot line adjustments, one appeal, one variance, nine minor use permits, fifteen temporary use permits, twenty-one signs permits, twenty-nine Home Occupation Permits and approved 140 Business Licenses. Reviewed 96 building permit applications. Developed conceptlfeasibility plans for the two alternatives for the Police Station project. Processed Development Code Amendments for Mobile Food Vending, 2-hour parking in the Village, temporary signage and an amendment to the Public Art Guidelines. Completed Draft Housing Element and submitted to the State Department of Housing and Community Development for certification. Awarded contract for the Bike and Pedestrian Mater Plan update and held a kick- off meeting with various stakeholder groups. Assisted in development and participated in initial meetings for the Economic Development Element Update Committee. Received Draft Historic Resources Context Statement and Limited Survey from consultants for HRC review. Staff and HRC members received Mills Act presentation from consultants. Staff continues to work towards obtaining a recommendation regarding the Draft Historic Resources Context Statement from the HRC. Agenda Item 11.b. Page 51 Completed second 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. Designed and processed parking directional signage for the Village. Met monthly with Northern Cities Management Area Technical Group consisting of neighboring jurisdictions to monitor quarterly groundwater monitoring program and development of regional groundwater plans and various grant applications. Met with Arroyo Grande Watershed MOU stakeholder group to prioritize watershed projects. Continued general administration of the Community Development Block Grant program including conducting workshops for applicants. Participated in the San Luis Obispo County GIs User Group and gave a presentation at GIs day. Working with SLOCOG on development of a Regional GIs Council. . Administered lnclusionary Housing programs for City units and attended monthyly Housing Trust Commission meetings including participation in discussion of development of loan review process and underwriting guidelines, and a potential new forgivable loanlrecoverable grant program Participate in the regional Greenhouse Gas Stakeholders, San Luis Energy Watch Partnership, C5 (Central Coast Clean Cities Coalition), and SLO Greenbuild groups. Participation in joint grant from PG&E and APCD to develop required Climate Action Plan. Attended monthly regional Partner's in Water Quality and Partner's in Water Conservation meetings and established link to Gardensoft (landscape design software.) Submitted comment letters for Exceleron, Los Robles Del Mar, and the Nipomo Waterline project. Held initial meetings regarding potential projects for the LDS Church, residential project at E. Cherry, commercial projects at the JJs site, mixed use concepts for 135 E. Branch Street, new development plans for the Pike and Elm St. and at Cornwall Ave. and El Camino Real. Hired part-time Assistant Planner. Agenda Item 11.b. Page 52 Key Issues I Work Efforts In Progress Respond to HCD comments and complete final Housing Element. Adoption of Historic Context Statement and Limited Resource Survey Economic Development Element Update. Bike and Pedestrian Master Plan Update. Circulatior~ Element Update - Traffic Model. Process the new Police Station project pending June ballot initiative. Scope the comprehensive General Plan Update pending potential grant approval. Continue implementation of City's Housing, Water Conservation and Stormwater Management Programs. Streamline permit and regulatory processes for new businesses pending direction from the Economic Development Element Update Committee. Interim and long term growth potential for the Fredrick's and Williams' property. Update of water neutralization fees. Implement Citizen Serve software project tracking. Conservation and drainage easements for the Clark property at Printz Road pending grant approval. Develop plan for James Way Open Space trail connection. Comprehensive website update including integration of GIs capabilities. Agenda Item 11.b. Page 53 MANAGEMENT REPORTING SYSTEM MID-YEAR July 1, 2010 - December 31, 2010 FUND: GENERAL FUND DEPARTMENT: COMMUNITY DEVELOPMENT DIVISION: BUILDING AND LIFE SAFETY Mid-Year Accomplishments Continued education and implementation of the Adopted 201 1 California Building Codes including the new California Residential Code and California Green Building Code. Completed the final inspection for the elevator located in City Hall. Assisted in the final inspection for the local fire authority under the jurisdiction of the California State Fire Marshal's office for the extended care wing expansion of the Arroyo Grande Community Hospital. Performed inspections of, and assisted the Five Cities Fire Authority in, three separate residential structure fires located within the city limits. These three fires required staff to red-tag each structure as not habitable. Completed the blueprint and large plan scanning project and document archival system. Completed the third year of the Multi-dwelling Inspection Program (apartments). Plan review has maintained a maximum 2-week turn around. Maintained same-day inspection if called in the morning. Agenda Item 11.b. Page 54 Major projects that have been completed are: o Completed and the multi-tenant building that is housing PETCO, completed and issued the Certificate of Occupancy for PETCO. 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 affordable homes at the Grace Lane project. o Issued three permits for single family residential homes and completed and allowed occupancy of two new secondary dwelling units. o Issued the permit for the Grace Bible Church multi-purpose/class room addition. o The "Shops on Short Street" building was completed and Rooster Creek Tavern was issued its Certificate of Occupancy. o Issued the Certificate of Occupancy for the VCA Animal Hospital on El Carnino Real. Key Issues 1 Work Efforts In Proqress Expand interactive remote inspection through use of smart phone devices. Citizen Serve software implementation for code enforcement, business license, planning and maintenance service. Permitting and inspection for projected projects. Fire Marshal certification. Process, track and record code enforcement cases in coordination with Police Department Neighborhood Services Officer. Agenda Item 11.b. Page 55 July 1,2011 - December 31,2011 FUND: GENERAL FUND DEPARTMENT: COMMUNITY DEVELOPMENT DIVISION: ENGINEERING SERVICES Mid-Year Accomplishments Processed and inspected 16 encroachment permits for work within the City right- of-way. Completed the construction of the Le Point Street Parking Lot behind the City Council Chambers. Completed the Centennial Park improvements. Completed Reservoir No. 6 and Oro Booster Station construction. Performed an asphalt overlay on the Traffic Way Extension and placed microsurfacing and slurry sealing membranes for selected City streets in accordance with the recommendations of the Pavement Management Program. Coordinated consultant work on Brisco Interchange project, including meeting with Rodeo Drive neighborhood, meetings with SLOCOG Board and staff, submittal of designllayout drawings to Caltrans, and preparation of technical studies and environmental assessment, life cycle cost estimates, project schedule, and initial right-of-way estimates. Completed Urban Water Management Plan. Awarded a contract for Lift Station 3. Awarded a contract for Citywide Concrete repair Agenda Item 11.b. Page 56 Secured grant funding and solicitation of proposals for the Bridge St. Bridge project. Started design efforts to upgrade the Soto Sports Complex electrical switchgear, athletic field lighting replacements at the lkeda and Volunteer Fields, and install new athletic lighting for Don Roberts Field. Designed, bid, and awarded construction contracts for the Castillo Del Mar Bike Path and the Citywide Concrete Replacement projects. Represented the Engineering Group at twice monthly SAC meetings. Revised 2-hr parking in the Village. Construction of the Stone Culvert project. Participated in the processing, approval process or plan checking of the following significant projects: o Veterinary Clinic on E. Grand Ave. o PETCO final improvements. o Acceptance of easements and final improvements for subdivision on Spruce St. o Development review for Pier 1 Imports. o Tract 2964 - The Pike and Elm Streets. o Processed 3 Lot Line Adjustments. Implemented the City Stormwater Management Plan (SWMP) Committee for implementation of regulations and development of the annual report. 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. Attended Countywide Low Impact Development Training Sessions. Kev Issues 1 Work Efforts In Progress Construction is under way on the El Camino Real retaining wall, rehabilitation, and waterline installation projects. Complete PA&ED for the Brisco Road-Halcyon RoadIRoute 101 Interchange project. Agenda Item 11.b. Page 57 Continue lmplementation of Stormwater Management Plan including new code update and required reporting requirements. Complete Water Master Plan and Sewer Master Plan updates. Cornplete design, bid and construction for 2012 pavement management projects including the Greenwood Tract. 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. Conclude traffic calming alternatives for James Way and intersection modifications for Branch MiIIIE. Cherry at Traffic Commission. Complete design and construct Colina & Via La Barranca, W. Branch, Larchmont, and Oro drainage improvements. lmplementation of departmental documentation in accordance with the City's archive policy. Recruitment of Engineering position. Selection of firm for contract engineering services. Agenda Item 11.b. Page 58