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HomeMy WebLinkAboutStaff Report 4.C 3/4/2013 Agenda/a/I tCwv#4.C RP Ud7 a ,j1`1r rtAy a, 185s DATE: March 4, 2013 TO: Honorable Mayor and Member's of the City Council FROM: John C. Brown, City Manager SUBJECT: Resolution Establishing the City Council's Goals and' Priorities for 2013 and 2014. RECOMMENDATION It is recommended that the City Council adopt:the attached resolution establishing the City Council's goals and priorities for 2013 and 2014. BACKGROUND In February 2012, the City Council conducted its annual goal setting session for the coming two Y � Y g b year period. The Council focused its attention on broad goal categories. These are the areas in which, by Council policy, staff directs its efforts. Goal categories for 2012 and 2013 were: • Financial Stability • • Council/Staff Effectiveness and Decision Making • Healthy Development, Sustainability, and Economic Development • Capital Improvements On February 2, 2013, the Council conducted a goal-setting session, to review progress on the existing goals, and to revise those goals for the coming two-year period. Attachment 2 was discussed during the session and provides a summary of the progress made in 2012 on the Council's goals, including "parking lot" items. The parking lot list included items of interest to the Council that were not incorporated into the Council goals. DISCUSSION Draft goals and priorities for 2013 and 2014 were-developed by my office; in cooperation with City Departments and taking into account input provided by individual City Council members. The work plan recommended to the Council on February 2, 2013-reflects an emphasis, as have past work plans, on: finishing what we have previously started, stabilizing the City's finances, solving existing problems of serious importance, and being able to do so within our existing resources and workloads: The one exception to working within the limits of these emphases is that a vacant position in the Finance Department will need to be filled in order to complete the Agenda Review: City Attorney Finance Director City-Manager _ 1 analytical work associated with the various new priorities selected in the Financial Stability category. A new goal category was added this!year, "Support Public Safety". Also added were a variety of new goals and priorities. These changes result.in an aggressive work plan that recognizes a broad range of City needs which Must be met. The Council provided input regarding these, and additional desirable goals for the coming period, considered public comment during the session, and reached consensus on a set of goals and goal priorities for 2013 and 2014. These,are recommended for your approval, and are included in this package as Exhibit 1 to the attached resolution: Attachment 3 provides the list of "parking lot" items remaining after the 2013 goal setting session. FINANCIAL IMPACTS As indicated, emphasis in goal setting is placed on, among other guiding principles, completion of the work program within existing resources and workloads. The exception to this guidance was discussed during the February 2, 2013 session and is:the hiring of a.position in the Finance Department who can conduct and assist with all the various analyses included in the Financial Stability Category. That position will need to have sufficient technical and professional skills to conduct complex analyses and perform all the ancillary work associated with those tasks. The classification for this position, and associated costs, are currently undetermined but are not expected to be less than $100,000 per year. A separate item to establish the position will be brought back to the Council in the near future, and associated costs—and anticipated funding sources—will be provided at that time. ATTACHMENTS 1. Resolution 2. Status Report on 2012 Goals 3. Parking Lot list for 2013-2014 tt ATTACHMENT 1 RESOLUTION ESTABLISHING THE CITY COUNCIL'S GOALS AND PRIORITIES FOR 2013 AND 2014 WHEREAS, the City Council conducted its annual goal setting workshop on February 2, 2013; and WHEREAS, the purpose of the workshop was to strengthen teamwork and to establish goals and priorities for the next two years; and WHEREAS, progress on the goals and goal priorities established in 2012 was reviewed; and WHEREAS, priorities from 2012 were completed, continued, or modified; and WHEREAS, additional goals for the two year period encompassing 2013 and 2014 were proposed; and WHEREAS, consensus was reached'by a majority of the Council on a revised set of goals for the two year period. NOW,THEREFORE, BE IT RESOLVED THAT the City Council does hereby endorse and establish the Goals and Goal priorities developed at the February 2; 2013 goal setting workshop, and incorporated herein as Exhibit 1. 3 • EXHIBIT 1 City Council Goals and Priorities for 201.3 and 2014 Category: Financial Stability Goal:.Achieve fiscaLstability and maintain financial sustainability Priority: Develop Five-Year Financial Plan'for General.Fund 1 . Refine the General Fund Five-Year forecast and provide semi-annual updates to the City Council 2. Update the City-wide cost allocation plan 3. Evaluate and implement options for reducing debt service (in all funds) 4. Analyze'alternatives for reducing PERS and OPEB unfunded liability 5. Develop a plan to re-establish regular contributions to funds including Vehicle Replacement, Employee Benefits, and Marina 6. Review/establish reserve policies for the General Fund, other operating funds, and intra-governmental service funds 7. Develop.a long-term plan to achieve the City Council's designated General Fund"reserve`policy 8. Develop and prioritize expense scenario options reflecting Community and Council preferences 9. Develop and prioritize revenue scenario options reflecting Community and Council preferences 10.Select preferred alternatives; and 11.Establish and implement budget policies necessary to realize preferred alternatives and foster long-term financial sustainability Priority: Restore reserves 1. Determine and,implement Council policy regarding the set-aside for reserves from one-time revenues, and from new, recurring revenue 4 sources such as tax proceeds from new commercial development, new taxes, etc. Priority: Prepare financial forecasts for Utility and•Special Revenue funds 1 . Streets 2. Water 3. Wastewater 4. Storm water Priority: Finance additional Street improvements using new revenue from Solid Waste franchise 1 . Establish Council policy regarding allocation of new franchise revenues between Streets and other uses 2. Determine feasibility of bonding for Street improvements 3. Complete debt issuance, if feasible Priority: Address loss of Redevelopment 1 . Continue to seek revenue sources to replace RDA tax increment 2. Continue to pursue litigation related to project funding 3. Continue to comply with the DOF guidelines 4. Appropriate 2007 TABs and 2011 TABs funds for project construction as funds become available Priority: Establish a fiscally sustainable storm water system 1. Re-visit funding options and implement Council direction regarding a dedicated funding source for storm watermaintenance costs 2. Evaluate the creation of a storm water utility, including funding alternatives Priority: Continue to seek opportunities to enhance revenue_sources 1. Evaluate the benefits of establishing Revenue Recovery and Purchasing Specialist positions, and budget-•accordingly 2. Develop a plan to educate the public and business community on city finances 3. Update and revise User fees and charges 4. Consider a ballot initiative in November,2014 to ask voters to,approve a sales tax to fund City services Priority: Continue to develop the City's website to allow for more efficient and interactive communication between residents and City Departments 1. Implement additional on-line payment/billing systems 5 2. Implement on-line permitting-whenever feasible 3. Implement asset management program for all maintenance operations to provide paperless customer request management and work order system 4. Utilize the EDEN Services Module to generate e-mail notifications 5. Inventory off-site record, update City records retention schedules, and coordinate department compliance with retention schedules Category: Council/Staff Effectiveness and becision Making Goal: Build a cohesive:team;comprised of the Mayorand.Council, City Manager and City staff that provides clear and consistent direction and works together with mutual trust and respect to provide needed public services and protect the public's interests. Priority: Negotiate successor agreements with: 1. Firefighter's Association (2013) 2. Police Officers Association (2014); and 3. Mid-level Managers, Professional and Technical, and Confidential units (2014) Priority: Re-institute no-cost employee recognition programs 1. Quarterly 2. Annually Priority: Plan for, and conduct, at least ten (10) City Council workshops each year, to provide ample time for in-depth consideration of issues 1. Budget policies and priorities 2. Storni water system, structure and financing 3. Improvements to wastewater treatment and recycling infrastructure 4. Financing street improvements 5. Others as determined by the City Council Priority: Complete.Public Works/Utilities consolidation to organize for maximum effectiveness Priority: Expand Adopt-a Park program Priority: Centralize coordination of all agendas, public noticing, records retention, and retrieval in the City Clerk's Office. Category: Healthy Development, Sustainability, and Economic Development Goal: Create and Implement clear direction on!development and sustainability objectives. 6 Priority: Implement the Central Petaluma Specific Plan — maximize development potential around transit-oriented development. 1. Complete the Station Area Master Plan 2. Seek funding to incentivize transit-oriented development 3. Work with SMART to extend regional Bike trail through Petaluma Priority: Continue to develop and implement procedural and legislative changes that will simplify-the development review process for all projects, and particularly for those that will specifically address the Council's economic development retention and attraction goals and fdr filling;empty space: 1 . Short term rentals 2. Cottage Food Act 3. RLUIPA Priority: Complete components of a zoning code update that fill in current "gaps", correct unanticipated consequences, or bring current provisions that are out-of-date. 1. revise the sign ordinance 2. update parking requirements 3. define mixed use 4. Update IZO and Historic District Guidelines 5. Approve Public Art Ordinance and Master plan Priority: Prepare.State-Mandated Housing..Element for 2014-2022 Priority: Conduct technical merit review of Community Choice Aggregation (CCA) proposal Goal: Plan for the future Priority: Complete comprehensive planning for major systems and.programs 1. Prepare a Petaluma Community Climate Action Plan to achieve greenhouse gas emissions reduction requirements 2. Update.Bike.and,.Pedestrian Master Plan 3. Update street cut policy 4. Revise Airport Commercial Use Master.Plan and amend Airport PUD as appropriate 5. Complete Environmental Study and receive regulatory approval of Shollenberger Dredge and Disposal Site Management, Maintenance, and Monitoring Plan 6. Initiate updates to master plans: a. Water - Evaluate North Marin Service Area Offer b. Recycled water c. Wastewater 7 d. Storm water Goal: Attractand Retain Businesses in Petaluma to enhance the tax base, jobs and quality of life for the community. Priority: Implement the Petaluma Economic Development Strategy, placing priority on strengthening existing businesses and attracting those new businesses that add value, and which pay head-of household wages Priority: Implement a comprehensive marketing program to promote Petaluma as a business location 1 . Create compelling online and print materials that inform businesses, talent, and investment audiences of Petaluma's strengths and assets 2. Promote Petaluma's strengths and assets through public relations and advertising activities Priority: Focus attention on supporting-food and beverage processing, Manufacturing, and alternative energy business clusters 1 . Evaluate, plan, and implement necessary infrastructure improvements 2. Initiate Business-friendly practices for collection, treatment, and disposal of wastewater Priority: Focus additional attention on supporting business retention and development in transit-oriented areas, including the SMART station areas, and in the downtown 1. Work with SMART to secure the Corona Road station site Priority: Support Heritage Tourism Priority: Continue-to coordinate actions required to obtain "Coast Guard City" designation Goal: Focus attention on opportunity sites identified in the Petaluma Economic Development Strategy (NEW) Priority: Realize the potential of the Fairgrounds as an economic engine 1. Reviseand extend Fairgrounds lease 2. Initiate joint City/Fair master planning for shared use of the property Priority: Promote opportunity sites for development in keeping with the SMART Station Area Master Plan, and other applicable plans Category: Support Public.Safety 8 Goal: Maintain a safe Petaluma Priority: Expand LED streetlight replacement program 1. Identify funding and implement replacement 2. Seek appropriate rate adjustments necessaryto realize energy cost savings Priority: Revise sidewalk repair strategy to optimize"current maintenance techniques and reduce administrative/legal costs Priority: Upgrade pavement maintenance practices and equipment Priority: Complete Flood Control piolects 1. Army Corp Flood Sheet Pile Wall 2. Adopt new FEMA Floodplain'maps and maintain minimum Community Rating System Class 6 3. Denman Reach, Phase 3/Capri Creek projects — complete design and land acquisition for Denman Reach, complete design for Capri Creek 4. Design and seek fiinding'for dredging of Petaluma River and Marina/Turning Basin Facilities Priority: Continue to implement "Petaluma Policing" 1. ARNO/CUP 2. Determine Council policy for regulating grow-houses 3. Identify and 'implement effective data:analytics to enhanceservice delivery and reduce incidence of crime Priority: Develop a structured, prioritized, and time-specific plan for a comprehensive City-wide•fleetreplacement program Priority: Develop a plan to finance, relocate, and construct Fire Station 1 and Expand Fire Stations 2 and 3 Priority: Develop a plamto finance•expansion of the Police building Priority: Evaluate partnerships with Rancho Adobe and other neighboring fire departrnentsfor opportunities forshared'administration. Priority: Develop a plan-to maintain and increase Police and Fire staffing Priority: Expand weekend hours of operations for Petaluma Transit Category: Capital Improvements 9 Goal: Plan for and implement:priority capital projects as funding permits Priority: Finance and construct ball fields (E. Washington) 1. Establish an implementation plan for financing and building Phase 1 improvements Priority: Coordinate with Caltrans and SCTA to deliver regional highway transportation improvements 1. East Washington Interchange 2. Old Redwood'Highway interchange 3. Rainier Priority: Prepare Capital replacement and/or maintenance plans for water and sewer distribution:and collection systems; storm water facilities; streets, streetlights, and traffic signals; and City facilities 1. Develop Inventories 2. Develop Replacement Schedules 3. Prioritize improvements 4. Identify funding sources 5. Initiate Construction Priority: Pursue funding for Trestle restoration Priority: Pursue La Cresta Ridge Property Acquisition 10 ATTACHMENT 2 STATUS REPORT ON CITY COUNCIL GOALS AND PRIORITIES,FOR 2012 AND 2013 Category: Financial Stability Goal: Improve and enhance fiscal stability and sustainability Priority: Plan for, and Address, loss of Redevelopment 1. Estimate impact on General Fund, and identify alternative funding sources. 2. Complete all procedural requirements associated with•dissolving PCDC and establishing successor agency and oversight committee, and ongoing housing activities. Status 1. Partially complete. Impacts were calculated in 2012. This included calculations performed at 2011/12 mid-year review as part of the five-year financial forecast update, during 2012/13 budget development, and currently as part of the 2013 forecast update. Administrative costs are partially supported by tax increment available to the Successor Agency=forthat purpose. Staffing changes were made, to reduce hours and to reallocate staff to other funds. Increased revenues generated from the dissolution have thus far been sufficient to cover other shortfalls., Administrative program impacts were offset by a combination of staffing reductions and shifts, with Agency revenues, and with increased tax apportionments: Funding previously available to non-profit partners was reduced, and is"currently provided through the other funds available for housing purposes. The City'filed suit against the State Department of Finance, related to that agency's disallowance of three regional transportation projects on which the City is partnering with SCTA and Caltrans. These projects have a combined City share of costs of approximately°$22 million. The City's development impact fees were modified to include the eligible costs of these projects, if the City's legal challenge is unsuccessful and RDA funds cannot be retained to support the City's project obligations. No other funding sources have thus-far been identified. Status 2: Completed, ongoing. Approximately 30 actions related to the dissolution of the Agency were completed in 2012. These included electing'to serve as the 11 • Successor Agency to the former RDA and to retain former Housing functions and assets; establishing an Oversight Board; establishing new funds and accounting procedures for the PCDC and housing successor agencies; adopting required budgets; completing required housing and non-housing audit due diligence and compliance reviews; approving three sets of ROP's at each level of decision-making; challenging State Department of Finance decisions; and attending meet-and-confer sessions. The last of three audits will Abe completed in 20.13. Staff continues to support'ongoing litigation activities to retain funds for regional transportation projects. Priority: Establish a fiscally sustainable storm water system. 1. Evaluate options for funding storm water maintenance costs previously included in the Wastewater operating budget 2. Evaluate the creation of a storm water utility, including funding alternatives Status 1: Partially complete. Staff identified possible funding alternatives for the City Council in June, 2012, but none were selected. To provide funding for storm water maintenance costs until further evaluation of alternatives can be completed, the Council, in July 2012, authorized an 18-month loan from>the Storm water Impact fee fund for the period from January 2012 through June 30, 2013. The loan will need to be reconsidered in spring 2013. Status 2: Incomplete. Retained for 2013 and 2014 goal period. Priority: Implement a fiscal sustainability plan (including implement a second PERS Tier) 1. Update the Five-Year Financial Forecast 2. Determine and implement budget policies necessary to foster long-term financial stability Status 1: Complete for2012, ongoing. The financial forecast was refined and updated in February and May, 201Z and is scheduled to be updated semi-annually when the budget is developed and again at mid-year review. Status 2: Partially complete, retained for 2013 and 2014.goal period. Nearly $1.5 million in additional expense reductions were achieved in the 2012-2013 budget adopted by the City Council: Reductions included: eliminating part=time support for City Attorney services; maintaining vacancies in Fire and Police staffing; eliminating private security at.Keller Street garage;, and reducing the length of summer camps. Most of these actions attain immediate cost savings, but are not expected to be sustained over time. The most significant change, to fostertlong-term stability, was transferring responsibility for Animal Services to the Petaluma Animal Services Foundation. This 12 action contained City costs for Animal Services, and•seekflo take advantage of additional funding support that is only available to non-profit foundations. Status PERS: Completed. PERS programs in place for City employees at the beginning of January 2012 includede 3% at 50 program for Public.Safety employees and a 2% at 55 program for Miscellaneous employees. Benefits for both programs are calculated on an employee's highest year's earnings. Second PERS tiers were negotiated with all City bargaining units in 2012, 3% at 55 for Safety employees and 2% at 60 for Miscellaneous employees. Benefits for those programs will be calculated on an a''erage.of the three.highest years of earning. The City Council authorized PERS contract amendments to implement a second tier for Public Safety employees in October 2012, and with Miscellaneous employeea.in December 2012. These second tiers Will apply to employees hired after January 1, 2013 with prior PERS service credit coming from other agencies; and who have had a break in service of no more than 180 days. All employees hired after January 1; 2013 with no priorPERS'service will be subject to tiers established by State legislation in 2012. Priority: Re-establish General Fund reserves necessary'for cash flow and unforeseen circumstances 1. Update the City's list.of potentially surplus properties, and determine which, if any should be marketed 2. Determine Council policy regarding the:set-aside for reserves from new revenue sources including taxes from new commercial development, savings from consolidations, etc. Status 1: On-Hold. A limited:number of parcels, suitable for sale have been identified. No action was taken to sell these propertie's in 2012, awaiting further improvement of the real estate market. Status 2: Not initiated. Retained for 2013 and 2014. Priority: Continue to seek opportunities to enhance revenue sources 1. Gauge the business Community'ssupport.for increasing the.TOT to fund tourism and downtown and citywide promotion and economic development. Status: Complete. Staff was directed'to complete this;work by March; 2012, in time to place the matter on the ballot for the June 2012 primary election. Support from the business community, and particularly the lodging and hospitality sector was found to be lacking. As well; upon legal analysis, it was found that City's Charter specifies that 13 tax measures may only be placed on the ballot for general elections. Based on these factors, the matter was set aside. In June, 2012, Council also considered placing a'sales tax measure on the November 2012 ballot. Council review focused on amounts and terms most likely to receive voter support, and both Council and staff gauged Community support for the measure. Strong support for the tax.increase was found lacking atthattime. Combined with the Council's concern that placing such a measure on the ballot would compete with and impact the chances of the PFOR parks measure passing, this matter was also set aside. In addition to the foregoing, an 18-month process to grant a new solid waste franchise was completed in 2012 and received final approval in January 2013. Among a variety of benefits attendant to the new franchise are $8 million in new funding for the General Fund over the fifteen-year term of the new agreement, and$3,750,000 in new funding for street improvements. Priority: Continue to Develop the City's Website to allow for more efficient and interactive communication between residents and City departments Status: Ongoing. Improvements made in 2012 include: • Implemented business licensing and miscellaneous receivables on-line payment system; • Developed a TOT/TBIA information-web page; • Updated the Business tab for the City's Economic Development website; in process of updating the remainder Of website; • Granicus options were upgraded to provide meeting video and audio in various formats; • Web site navigation features were upgraded • Emergency alerts and notifications were added that allow Fire and Police to provide updates during emergencies; • A Petaluma Video Tour Book was added to promote various events-and community;features; • A Road Work Ahead feature was added to alert the community to street closures and other impacts from projects or emergencies; • Bridge opening requests Turning Basin mooring permits were also added to the web site; and, • I.T. is currently working with Public Works and Utilities analyzing customer request management (CRM) systems. Implementation of a CRM is expected to be completed in 2013, and will allow;the public-to submit service requests or complaints via.a variety of methods, Including by smart phones, computer, etc. 14 I I Category: Council/Staff Effectiveness and Decision Making Goal Build a cohesive team comprised of the Mayor and Council, City Manager and City staff that provides clear and consistent direction:and works together with mutual trust and respect.to provide needed public!services and protect the public's interests. Priority: Complete negotiations with all bargaining groups'with open contracts Status: Completed...Negotiations completed'and agreements'ratified with Units 1, 2 and 3, AFSCME, Units 4, '9 and 11; PPMMA, Unit 8, Department Directors, Unit 6, Police, Unit 7,.Fire and Unit 10, Piblic.SafetyMid Management. Priority: Re-institute no-cost;employee'recognition programs: quarterly, annually, longevity Status: Partially complete,,in process. Public recognition of employee longevity was re-instituted in April, 2012. In addition to recognitionpatthe department level, and by the City Manager and.Mayor, 'and with applicable service award pins, employee longevity is again recognized on a public:basis, quarterly, at City Council meetings. No-cost alternatives to recognize an Employee of the Quarter and Employee-;of the Year, such as contributions of services,and merchandise, have been discussed"with'thesbusiness community, but have,not_yet been secured;or implemented.. Parallel to securing'no-cost awards, nomination and:review criteria stilt'need to be developed. This work is expected to be competed in,2013. Category: Healthy Development, Sustainability, and Economic Development Goal: Create and Implement cleardirection oh development and sustainability objectives., Priority: Implement the Central Petaluma Specifit'P lan maximize development potential around transit-oriented development. Status: In Process: The Station Area Plan initiated in 2011 is in the final stages of completion. The Plan identifies the'rhighest and best transit-oriented uses for the station areas, and will address market demand, parking, infrastructure needs and capital financing alternatives, incentives, housing and conceptual design. It also identifies amendments to'the Smart'Code.needed to,implement,the Plan. A Final Draft of the Plan has:just'been completed and is being circulated to,the Station Area Plan Citizens Advisory Committee for its final recommendation. It will then proceed to the Planning • 15 Commission and the City Council;in the coming months for approval. To comply with funding agency requirements, the Plan must be adopted by the end of June, 2013. Priority: Complete development impact fee review and implement fee reductions, avoiding negative impacts to planned infrastructure projects and General Plan. Status: Completed. Completing a'year of;f staffeValuation, updating.studies to support a • legally defensible fee structure, and repeated City Council consideration, changes to the City's development impact fee[ordinance and resolutions were adopted by the City Council in August 2012. Fee reductions varied, depending on category, but represent an overall reduction of 28.5 percent from the fees in effect as of 2011. Depending on the outcome of litigation associated with the State Department of Finance's disallowance of expenditures related to the Old Redwood Highway and Rainier projects, opportunity may exist in the future to further reduce traffic mitigation fees. Priority: Continue to.develop and implement procedural and legislative changes that will simplify the development review process for all projects, and particularly for those that will specificallraddress the Council's economic development retention and attraction goals and"for filling empty space. Status: Ongoing. Staff met with numerous businesses involved with or contemplating the development review process and identified process improvements that have been implemented or are underway. These include: • Routing all building permits.and development applications to the Public Works and Utilities depadment.to assure all businesses are aware of water and sewer fees before they are subject to significant review expenses; • Development Review .101 hand outis currently drafted and will be completed in early 2013. This will help business owners better understand, and have more realistic expectations about the development review process; • The Planning portion.of the website was updated to be.more user-friendly; and • The Development Review Committee continues to:meet'Weekly to review development proposals and to provide early input about upcoming development applications: Priority: Complete-components of a zoning code update that fill in current"gaps", correct unanticipated consequences, or bring current provisions that are out-of- date. 6. update parking requirements 7. revise the-sign ordinance 8. revise zoning regulations in the downtown to limit smoke shops and head shops, massage and tattoo parlors, full service bars, pawn shops and check.cashing establishments 9. revise smoking ordinance to address multifamily residences and outside areas 16 10.update historic district guidelines 11.define mixed use Status 1-6: Partially Complete. Following City Council direction, Staff prepared, and,presented to the Planning Commission and the CityCouncihrevisions to the,sign ordinance to facilitate the placement of freeway-orientedsignage. Staff time to'develop and present this legislation was supported bythe four commercial developments that would have benefited from the changes"the Council requested. The legislation failed to receive approval from a majority of the'Planning Commission, or subsequently from the City Council. In December 2012:and January, 2013. the'Council considered and approved changes to the smoking ordinance Tha..strengthenedlordinance prohibits smoking in multi-family residences, lodging establishments, and certain outdoor public locations. In December, 201Z City Council considered an ordinance°to regulate massage establishments in Petaluma, regardless of location. Council directed further outreach to cooperation with massage professions, to refine the proposed ordinance. The revised ordinance is scheduled,:for consideration on the Council's February 4, 2013 agenda. Also in December,. 2012, staff presen"ted'proposed<changes to the Zoning Ordinance to requested'by as re the Downtown the.Planning"Commission intended, q, y he Petaluma Association'at 2012 goalsetting, to limit smoke shop&andhead shops; massage and tattoo parlors, full service bars; pawnshops and check cashing_establishments in the downtown area. Planning Commission'feedbacksuggeSted the need for this additional level of regulation is:questionable: Staff is;currently nofworking on this project, nor is it . . currently scheduled for further advisory or decision-making consideration. Goal: Attract and Retain Businesses in'',Petaluma to"enhance the'tax base, jobs and quality of life for the community: Priority:Jrriplement an,overall economic•developnientrstrategy that'places priority' on:strengthening existing businesses and attracting"those new businesses that add value. Status:'Ongoing. Staff continues:to implement the;adopted Economic Development Strategy, while also completing the many tasks related to the dissolution of the former PCDC. • 17 Business Expansion and Retention Staff continues to reach out to locai.businesses to understand their needs, and is working with local banks to help connect local businesses-to financing resources. Staff makes business-to-business connections where appropriate and responds to real estate leads from interested companies, helping to direct new businesses to appropriate real estate opportunities. Staff meets monthly with the Chamber's Economic Development Committee to address issues and accept input about the'City's ongoing economic development efforts. Staff has participated in a handful of meetings to advocate for small business services in Petaluma. The Santa Rosa Small Business Development Center closed this summer and staff has met with other groups to assure that Petaluma's needs are addressed in any future center programs: Staff is also reaching out to the Napa Center to access services for local businesses: Business Attraction Staff is working collaboratively with;the Downtown Association and the Chamber of Commerce to develop a coordinated marketing.program for tourists and businesses to assure that marketing efforts are not duplicative and"reach'the largest audience possible: A marketing planhas been developed and a design team has been selected to complete marketing materials in early 2013. The program will focus on elevating Petaluma's Visibility throughout the Bay Area. Staff provides ongoing ombudsman services to assure that each interested business gets the information they need. Information needs vary but,include local workforce, housing and transportation information, Staff also monitors and/or stays involved in the site selection process underway for local and new businesses exploring opportunities in Petaluma. Staff also continues to work with..local partners toexplore the possibility of a Petaluma marketplace, to attract tourists and.provide a venue for local food producers and other artisans to display and sell their products. This facility may provide a location for a local foodco-packer that produces value added foods such as bars, jams and other canned and baked.goods: Priority: Identify funding;sources that can be used to replace monies lost through dissolution ofPCDC. 1. Gaugethe business Community's,supportfor increasing the TOT to fund tourism and downtown and citywide°promotion and economic development; and pursue a talc increase measure, as appropriate. Status 1: Complete. Staff was directed to complete this work by March, 2012, to provide sufficient tirne to place the matter on the ballot for the June 2012 primary election. Support from the business community, and particularly the lodging and 18 hospitality sector was found to,be lacking. As well, upon legal analysis, it was found that the City's charter requires°that tax measures may only be placed the ballot for general elections. Based on these factors, the matter was;set aside. In June; 2012, Council also considered placing.a sales tax;.measure on the November 2012 ballot. Council reviewifocused on amounts and"terms most likely to receive voter support, and both Council anddstaff gauged support for the measure. Strong support for the tax increase, at that time, was-found lacking: Combined with the Council's concern that;placing such a measure on°the ballofwould compete with and impact the chances of the PFOR parks measure passing, this 'matter was also set aside. Priority: Focus attentionon supporting food processing and alternative energy business.clusters 3. Evaluate, plan, and implement infrastructure necessary infrastructure improvements Status 1: In Process. Economic Development and.Public Works and Utilities staff continue to better understand and ad dress the wastewater needs of our local food processors. In the coming'year, the Water Resources Department will need to further evaluate the current plant's capacity to accept food related wastewater and to determine what, if any improvements can be made to accept food'waste so that Petaluma can remain competitive for food processing businesses. Priority` Focus additional attention.orrsupporting'business retention and development in transit-oriented.areas, including the SMART station area, and in the downtown. Status: In Process.; Staffaddressed'inquifies from commerdiaiand manufacturing businesses-seeking tossite inthegreater Downtown area, in 2012; provided ombudsman,services,between those businesses and other City departments, and coordinated with real estate brokers, property owners, and managers as necessary When;the Station.Area Master Plan is completed, staff-will be able to focus attention on development opportunities in transit-oriented areas consistent with;,the'Plan, and will highlight those opportunities in the marketing materials to be developed this year Priority: Coordinate the actions required to obtain "Coast Guard City" designation Status: In Process. Staff met with Coast Guard personnel, the Downtown Association and Chamber to identify special.programs'that could be implemented to support the request for Coast Guard Citystatus. An application for-Coast Guard City status was completed, submitted tothe,Coast Guard in July, 2012 and is currently awaiting 19 Congressional.review. In the meantime, at the City's request, the Rooster Run Golf Course initiated a discounted greens fee for the Coast Guard. The Downtown Association and the Chamber are also working together to implement a local retail discount program, and a Coast Guard•display has been added at the Museum. Category: Capital Improvements Goal: Plan for and implement priority capital projects as funding permits Priority: Investigate and develop funding partnerships with traditional and non- traditional sources to finance and construct.ball fields (E. Washington). Status: Ongoing. Petaluma Friends of Recreation (PFOR) developed and campaigned for a parcel tax assessment specifically focused on Parks and Recreation project and program development, and in particular on Phase 1 of the East Washington Park Project Measure.X achieved.62% favorable votes, but fell,short of the stringent super majority approval requirement Staff continued communicating with and reporting to the Open Space District relative to grant funding that is set aside for the East Washington Park Project, including commenting on and supporting a policy revision that protects project funding until'December of2016. Staff is currently working on a refined scope of work for the project that would enable the City to use the $2,000,'000 Open Space.Grant before its.expiration. It,appears impact fee funds are;sufficientlyavailable to meet the,match requirement of the grant and that combined with.local contributions the potential exists to construct two all- season fields with lighting, but no other improvements beyond what is needed to access the fields and maintain them. Priority: Inventory:and Assess Water, Wastewater, Storm water, and Street systems 6. Develop Capital Inventories 7. Develop Capital Replacement Schedule 8. 'Prioritize improvements 9: Identify Capital'funding sources Status: Incomplete. Retained for 2013.and 2014. Priority: Complete Flood Control,project Status: In Probess. Issues with the Army Corps of Engineers regarding City match to this:project`have been resolved; and City staff is coordinating with Corp staff to resume the remainder of work needed on this project to bringit to completion. Corp staff has committed to seeking funding in the Federal 2014 budget for the project; and City staff 20 has begun meeting with our Congressional representatives_to bring them up to date on progress and obtain their support for the funds needed to complete the project. Work on the Denman Reach project, Phase 3 also moved forward in 2012, during which the environmental review for the project was complete&and the City Council adopted a mitigated negative declaration in September, 2012. Priority: Pursue funding for Trestle restoration Status: In Process. Planning was undertaken in 2012, including public outreach, to determine a scope of work. A mitigated negative declaration was adopted for the project by the City Council; as defined by that scope of work in September, 2012. Design work has proceeded since, and final design.,is nearing 90% complete. Final design must be complete by March 31, 20,13, the deadline>for expending grant funds. Parking Lot (in alphabetical order): ARNO/CUP - Revisit Charter amendment -complete. Charter amendment dealing with vacancysuch as we had after November 2010 City Hall rehab Corp Yard rehab Fire Sprinkler retrofit program —Water main down Petaluma Boulevard Fire Station No. 1 Fire Stations No. 2 and 3 — upgrade, design work to modernize Flood Control La Cresta Want Status: The acquisition of the La Cresta property was,negatively impacted by the downward spiral Of the reat estate market. The project°was conceived to Include a 50% donation of property from the owner, CalWater, intended to provide the 50%match requirement of the grant. The de-valuing of the property has impaired the ability and/or willingness of Cal Water to consider a donation of the,magnitude originally envisioned. Staff hascontinued working with CalWater,, who remain willing sellers, including identifying the timeline for which this acquisition would likely need to.occur. As well, staff suggested alternative.methods for funding the required match to both Cal Water and the La Cresta Neighbors, who are a partner in the project. A combination of increased in-kind services used as local match, decreased impact fees positively impacting the appraised value of the property, and some rebound in the real estate 21 market will contribute to successful acquisition within,the.time frame required by the Open Space District. City Staff engaged in policyreview relative to Open Space.Matching Grants and supported a policy that will.assure funding awarded for this acquisition will remain available to the project until December of 2014. Additional Open Space Acquisition from 2011-2012 Council Goals: Paula Lane Status: Staff was able to sustain.negotiations with the property owners, complete preparation of grant agreements and the conservation easement, culminating in execution of a purchase and sale agreement and acquisition of the property in May 2012. Revised lease agreements were executed with residents of the 2 single family dwellings on site and security deposits and monthly lease.payments collected. Improvements to the residences have been completed prior to winter-rains, and were completely funded from rental proceeds. The required Management Plan has been submitted to Open Space Distnct for review, and the agreement between the City and its project partner; Paula Lane Action Network negotiated. Additional Progress on'2011-2012•Goal: Swim Center Upgrades Status: A new set of pool covers were acquired and utilized duringithe 2012 season. This equipment, valued.at$25,000; was negotiated with Regency as part of the East Washington Place project. A project to remove the showers from the boiler hot water was undertaken. Work has been authorized to install an independent;hot water tank to serve the shower rooms. The project will provide for more comfortable water temp atthe shower areas, and will result in an energy savings. An additional cost saving measure was implemented that involves_separating water meters in order to reduce wastewater charges tied to water use it is anticipated the change will`result.-in significant utility savings, which can be reprogrammed to support other pool operations. Project plans are nearly,complete and project specifications underwayfor the energy savings.projectinvolving boiler and circulation pump replacement. The project, anticipated to/result in significant energy savings,: was bid in January and should be complete,by 2013!poolopening. 22 An additional project in design.is the;,installation of solar panels. The same consultant who is doing the boiler project is doing the solar,array required.of Regency and the project is in design. lmplementation.should occur at the.same time as boiler replacement, and the project will result in additional cost savings. The East Washington Place Project will complete traffic circulation, parking and • landscape improvements°around the swim center. Demolition is complete, and the asphalt and concrete work is underway and is not anticipated to negatively impact the pool opening in spring. The Cavanagh Pool was closed,in December and the failing pool bottom was re- plastered, sealed and painted. Landscaping and Lighting Districts that decide how to fund repair and maintenance List of issues/projects we can move:forward with in case of a "windfall" Mighty Midget — volunteers'are preparing business plan Police Station Rainier Tax measures. Evaluate options including parcel tax, sales tax, and other assessments Zip Car or City Share cars for rental downtown by people who don't need a car 24/7. 23 ATTACHMENT 3 Parking Lot Listfor2013-2014, Lafferty Ranch Early Release of Initial Studies 2q