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HomeMy WebLinkAboutStaff Report 3.B 03/05/2012AjevwLa1Ite41w #3.3 Ff DATE: March 5, 2012 TO: Honorable Mayor and Members of the City Council FROM: John C. Brown, City Manager �L� SUBJECT: Resolution Approving City Council Goals and Priorities for 2012 and 2013 RECOMMENDATION It is recommended that the City Council adopt the attached resolution approving the City Council's goals and prioritiesfor.2012 and 2013. BACKGROUND In March 2011, the City Council conducted its annual goal setting session for the coming two year period. The Council focused its attention on broad goal categories. These ate intended to be the areas in which, by Council policy, staff directs its efforts. Goal categories, and associated goals for 2011 and. 2012 were: • Financial Stability • Council /Staff Effectiveness and Decision Making • Development and Sustainability e Economic Development • Capital Improvements On February 4, 2012, the Council conducted a follow -up session, to review progress on the existing goals. Attachment 1 was discussed during the session, and provides a summary of the progress made in 2011 on the C'ouncil's goals. This,includes status updates on" "parking lot "' items, if there was reportable progress on those items. The "parking lot" list includes °hems the Council discussed, did not include in Council goals, but does not wish to lose sight of for future planning. At its February 4 =2012; session the Council also discussed revising its goals for the two year period encompassing 2012 and 2013. Draft goals for consideration were developed by my office, in cooperation' with City Departments. Recommendations provided by my office reflect Agenda Review: N City Attorney Finance Director �WJ �� City Manager an emphasis, as they have inthe past, on: finishing what we:havepreviously started, stabilizing the City's finances,, solving existing problems of serious, importance, and being able to so within our existing resources and workloads. The Council provided input regarding these, and additional desirable.goals for the coming period, considered public comment during the session, and reached consensus on the following set of goals and goal priorities for,2012 and 2013. These are recommended for your approval, and are included in this package as Exhibit 1 to the attached resolution. Attachment 2 provides the list of "parking lot" items remaining after the 2012 goal setting session. FINANCIAL IMPACTS No financial impacts have been calculated for the recommended action. These goals and priorities, however were developed in keeping with the emphasis,that they can be accomplished within existing resources. ATTACHMENTS Status of 2011 and 2012 Goals Parking Lot Items Resolution ATTACHMENT STATUS OF 2011 and 2012.GOALS Category: Financial Stability Goal: Improve and enhance fiscal stability and sustainability Priority: Conduct water and sewer rate adjustment process for 2012, 2013, 2014, and 2015 rate years. 1. Complete Urban Water Management Plan. 2. Finalize rate recommendations for 2012 implementation 3. Approve rate adjustments for out years. Status - 1, 2, and 3: Done. In December 2011, the City Council approved Water and Wastewater rate adjustments for rate years 2012 through 2016. Adjustments for 2012 amounted to four percent (4 %) for Water and five percent (5%) for Wastewater. The Council approved adjustments for Water in rate years 2013 through 2016 to allow for automatic pass through.of,SCWA rate increase and CPI -based adjustments. Automatic, CPI -based adjustments were approved for Wastewater rates, for the same period. These approvals followed a more than year -long process of rate review beginning in November 2010 which included reducing4he wastewater rate adjustment previously approved for rate year 2011 from 13 percent to 9 percent; completing and taking into account the effects of an Urban Water Management Plan on the need for and timing of certain capital improvements; completion and consideration of a storm water study , consideration of a revised rate study in October 2011, and conducting the requisite public hearings regarding proposed rate revisions.. Also completed in 2011, and reflected in the rate adjustments was a $22.4-million wastewater bond, which refunded 2005 lines of credit and consolidated debt associated with wastewater bonds issued in 2000. Other: The Keiwitt claim for approximately $13 million was settled in September 2011 for $4 million, limiting the potential for greater liability, including the legal costs that would have been associated with defending the City in a jury trial. $3.1 M of the settlement amount was funding through State Revolving Loan Fund, and was included in the final request for payment. The project engineering, and construction management firms contributed an additional $100;000, with the remainder taken from funding for capital projects. The City received the final State revolving loan fund payment in January 2012. Priority: Continue to investigate opportunities for, and implement, functional consolidations and other organizational change. Consolidate Fire dispatch with REDCOM 3 Status: Done. In July 2011, dispatching for fire:and ambulance calls was consolidated with the Redwood Empire. Dispatch, Communications Authority (REDCOM). This eliminated the.need for two dispatcher positions,in the Police ?Department, integrates the City's fire dispatching with that of 50 other fire agencies in Sonoma County, and paves the way for the Petaluma Police Department to pursue consolidated dispatch with other Sonoma County law enforcement agencies. Contract Fire Department EMS billing Status: In Process. The Fire Department continues to work on finalizing a JPA with the Sonoma Fire and Rescue -to provide EMS ambulance billing. This action is expected to increase collections, due to the efficiency of Sonoma Fire Department's billing program, and provide an upgrade of the Petaluma Fire Records Management System with a CAD interface. Project completion was delayed by the transition of Sonoma Fire to a special district in 2011. Consolidate Police. Dispatching Status: In Process. This effort is underway, with staff resources dedicated to the evaluation process from the Petaluma and Santa Rosa Police, and Sonoma County Sheriffs departments. Evaluation is currently focused on the capital cost of building out the Sheriffs communications center to accommodate :necessary workstations and equipment, which we be followed by staffing needs analysis. These will be used to determine the financial feasibility of consolidation and to develop estimates of the potential savings to be gained by each agency. Consolidate Public Works and Water Resources and Conservation departments Status: Ongoing. Consolidation of the Publics Works Department and Department of Water Resources and Conservation Department in July 1;;2011. Two recruitments for the new director were necessary before the position could be filled, so with the limited exceptions of creating, and recruiting for a Director of Public Works and Utilities, and shifting greater operational responsibility for grounds..maintenance at Ellis Creek to the Parks Maintenance, division, consolidation; is awaiting' the new director. That position was filled on January 31, 2012; and replaces two director positions assigned to Public Works and to the former., department of Water Resources and Conservation. As indicated at 2011 goal - setting, the new director will be tasked with working with the City Manager's Office to maximize integration and efficiency of all public works and utility functions through this consolidation. Priority: Implement a:fiscal?sustainability`plan (including•implement a second PERS Tier) Status: Ongoing. A five-year financial forecast was presented to the City Council in January 2011, and formed the basis for developing the 2011/12 budget. The forecast concluded that, without dramatic cuts in FYs 2011/12 and 2012/13, a cumulative deficit 1 of 15.1 million would exist in 2014/15. Analysis showed'that reducing the 201 1 -12 budget by $3.6 million would eliminate the - 2014/15 deficit ; :and provide financial stability in the subsequent: years. Council seta reduction target of $4 million to provide fiscal stability through the plan's life and to begin to rebuild city reserves. Negotiations were undertaken with the City's,represented employees, to seek compensation concessions. The Council also,authorized a final round.of early retirements, which it was hoped would achieve sufficient savings to reduce the amount of and need for other reduction alternatives. Ultimately, the Council adopted a budget balanced with early retirements, additional frozen vacancies, reassignment of staffing and reallocation of staffing costs, and lay -offs. These actions achieved balance for FY 2011/12 and 2012/13. They significantly lessen, but do not eliminate, the projected deficit at the year ending June 30, 2015. Savings associated with a second PERS tier do not factor into these estimates. They will be sought in current bargaining with represented employees. A revised 5 -year plan will be- presented:to the Council on February 27, 2012 and is expected to form thebasis for next year's budget, and beyond. Priority: Re- establish General Fund reserves necessary for cash flow and unforeseen circumstances Status: Short Term Progress. Due to budget reductions implemented for 2011 -12, estimated fund balance for June 30, 2012 grew to approximately $800,000. That balance is projected as necessary to offset estimated revenue -to- expense shortfalls in 2012 -13 however, leaving a balance at June 30, 2013, projected when the 2011 -12 budget was adopted, of approximately $116,000. The 2011 -2012 budget was balanced and general fund reserves enhanced through some of the following initiatives: 1. Approximately eight GF vacancies were held open because of golden handshakes. 2. Approximately nine additional GF vacancies, created through attrition, were held open. 3. Five (5) positions were eliminated through lay -off (all but 1 incumbent employees transfer to otherjobs in City) 4. A variety of staffing changes, and rate holidays 5. Further expense reduction and revenue enhancement. Priority: Continue to seek opportunities to enhance revenue sources Evaluate Medical Marijuana dispensaries and attendant revenue opportunities. Status: Done. A comprehensive report was presented to the City Council in December, 2011. Follow -up to that report during 2012 will focus on grow- houses and potential regulatory legislation associated with them. 2. Keep TOT increase on the table Status: No Significant Progress. There has been no concerted City effort undertaken in the first half of the two -year goal period to promote an increase in the Transient I Occupancy Tax. The Economic Development/Redevelopment Manager has been asked to gauge; support from the business community for an increase that would be in large part or in full dedicated to economic ^development and tourism promotion. Priority from my office was not placed on that assignment. 3. Develop a tax increase option that will be well received in the community Status: 'In Process. See status of E. Washington Ball Fields in "Capital Improvements" Category. 4. Consider installing parking meters in the downtown Status: No Progress. This project anticipates conducting a parking study as a precursor to further action. Other: In November 2011, the, Council revised the Municipal Code to allow a franchise to be granted to a sole source bidder. The Code had previously required that franchise agreements be granted through a competitive bidding process. This change will enable the City to negotiate a new franchise agreement with Petaluma Refuse and Recycling, providing significantly more franchise fee revenues than at the present. This would occur prior to the expiration of the existing franchise term. The Council was clear that this change does not approve a new franchise; such a franchise will need to provide greater public benefit than the existing 'agreement to justify an award based on a non - competitive process. Staff is currently in the process of negotiating such an agreement, which will be presented for Council consideration in spring, 2012. Other: It should be noted that City departments are active, and successful, in obtaining grant funding to supplement other City revenue sources. According to the most recent "Status of Current Grants" report, and supplemental information provided by departments, "grant awards in 2011 totaled nearly $2':2 million on a citywide basis. These monies fund a variety of activities, from design and rehabilitation of the transit facility, to seismic design for bridge rehabilitation, to traffic enforcement; to specialized fire equipment, and lighted crosswalks near high schools. Staff continues to give high priority to seeking grants to augment- limited City revenues. Priority: Develop and Conduct "a public information effort to educate the public as to the impacts on City Services resulting from budget reductions. Educate the Public Status: In process „no significant progress. Information exists, primarily in the City Manager's introduction to the Annual, budget document, which quantifies the actions taken to balance the budget and estimates the savings associated with those actions. This information,is posted to the City's website and is available, on -line, all year. Neither quantitative, nor qualitative information has been universally developed or maintained by the operating departments that can be used to document the specific effects of budget M/ reductions so that those effects can'be shared with the public. City departments have, in large measure, continued to atteiripVto provide the same services they have always provided, only with less regularity. Irf201.1, departments and city management staff were requested to begin documenting the effect of,bud'get reductions on their operations, and/or on the public. This information is forthcoming, and should be available in the second year of the goal period for use in satisfying this priority. 2. Use software on City site to allow the public to communicate interactively with the City. Status: In Process. The conversation regarding expanding opportunities to communicate interactively with the City was mainly in the context of allowing Citizens to provide input into the budgetary process, and to make reporting concerns and complaints more efficient. While no changes have been made to the city's website to enable more citizen interaction in the budget process, several actions have been initiated in 2011 that work to satisfy the larger priority of enhancing communication with the public. These include: • re- vamping the city's website to be more user friendly. and easier to navigate; • expanding web and phone based payment systems for Utility billing; • updating the utility web site to increase usefulness to the ratepayers and to keep information fresh; • updating the Economic Development Website to make it, more useful and easier to navigate (to be rolled out February, 2012; and • developing draft policies and procedures to utilize social media websites. In addition, the Police department is currently evaluating -software to facilitate on -line citizen reporting, to improve the ease with which citizens can report minor crimes for insurance purposes. Finally, the-Building Division is converting its permitting system to the Eden system. The Eden system integrates with the City's financial and,other Eden programs, and will allow for better tracking of permits, data utilization, and on -line permitting. Other Priorities not on the Council's Goal list: In January 2011, the Governor announced his intention to eliminate Redevelopment agencies, and meet State,funding obligations using the assets of the former agencies and redirected tax increment. Legislation-to eliminate Redevelopment agencies was subsequently adopted as part=of the State's FY 2011 -.12 budget. Between January 31, 2011 and May 2, 2011 the City took the following steps to attempt to secure Petaluma's Redevelopment funding: • City'Council approved execution of cooperative agreements between the City and the PCDC, to establish financial commitments for projects that are not currently under contract, or obligated through agreements with outside agencies. e The Council /PCDC issued $11,369,000 in private placement bonds to secure additional PCDC funding for planned regional transportation improvements. $10 million of these proceeds will pay for the City's share of the Old Redwood Highway I and Highway 101 widening projects; the latter associated with the Rainier Cross -town connector. e The cooperative agreement between the PCDC and the Sonoma County Transportation Authority was amended to commit $7,000,000 in funding from the private placement issue to the MSN -C -2 project, providing for the construction of the placement for the Rainier crossing in the State highway- widening project, for a total contracted commitment to SCTA of $7,498.00 for this component. e PCDC's real estate assets were transferred to the City of Petaluma. The redevelopment agencies brought suit against the State, challenging two pieces of legislation included in the budget, AB 26.1x and AB 271x, the former eliminated Redevelopment, and calls into question the obligations established by the City /PCDC cooperative agreement. The latter established the "pay to Play" program, providing that Redevelopment agencies could continue their activities if they provid"ed;formulaic annual payments to the'State. The courts upheld AB 26 1x, but struck down AB 127 1z. 2. 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: In Progress. Negotiations are currently underway with bargaining units 1, 2 and 3; 4, 9, and 11; 6; and 10. Negotiations with Unit 7 are expected to resume in the.near future. Priority: Revise Council Rules, Policies and Procedures Status: No Significant Progress. This project has taken aback seat.to more pressing business requiring the attention of the City Manager and City.Attomey. Staff is forwarding for consideration at the Council's next regular meeting an electronic device use policy which, as drafted has citywide applicability. The provisions of that policy should be incorporated inVthe Council's'. Rules, Policies, and Procedures, as well as those of the various City advisory bodies as those documents are updated. I 3. Category: Development and Sustainability Goal: Create and Implement clear direction on development and sustainalility objectives. Priority: Implement;the Central Petaluma Specific Plan — maximize development potential around transit- oriented development. Status: In Process. In 2009, the Metropolitan Transportation Commission awarded the City a $300,000 Station Area Planning Grant to master plan for transit- oriented development areas encompassing Y2-mile radii surrounding proposed SMART rail stations in Petaluma. The master planning process was; initiated in January 2011. Public workshops and Citizen Advisory Committee meetings were held over the course of 2011. An Existing Conditions Report and numerous Technical_Memorandums have been prepared and will serve as a; foundation - for the draft MasterPlan. It is estimated that the Draft Master Plan will.be "available for public review in March 2012, and that a final Master Plan will be:ready for adoption by end of 2012. The Station Area Master Plan will also include a review of the SmartCode©. The finished plan will include recommended changes to implement- transit- oriented development; to address unintended consequences, and update provisions.within the CPSP's SmartCode© based on lessons learned from the last nine years of CPSP implementation. Priority: Work..with SMART to obtain two stations, and to prevent the Operations and Maintenance Facility from being sited at the Copeland Street location. Status: Partially Complete. Staff met with SMART representatives on several occasions in 2011 to discuss a second Petaluma station at Corona Road, and siting options for SMART's Operation and Maintenance Facility. SMART has consistently indicated that limited funding prevents, them from immediately establishing a second Petaluma station. Efforts in obtaining the second station should continue in the future, as the line is completed; stations are opened, and additional funding may come available for facility expansion. With respect to the Operations and.Maintenance Facility, City staff has offered for consideration, and evaluated with SMART's consultants, several alternatives to the. Copeland Street site. Although no official announcement has been made, SMART has indicated that it has chosen a location outside of Petaluma for the Operations and Maintenance Facility. Other: As part of its line rehabilitation project leading to the initiation of commuter rail service, SMART will be locating its staging yard for the Petaluma area at the Copeland Street location beginning February 6, 2012. The property will be fenced, and used for storing and staging construction materials which will be transported to the site by train. 0 Priority: Develop -and, implement procedural and;Iegislative changes that will simplify the development- rev iewprocess for all projects, and particularly "for`those that will sli&ifically: address the Council's economic: development retention and attraction goals and for filling empty space. Status, Procedural Changes: In process. Concerns expressed by those who sought development approvals in thefast were a lack of specificity involved in the process, a perceived lack of support from City staff, and a changing landscape where conditions of approval are concerned'. Weekly Development Review Committee (DRC) meetings were established in mid -2011 to provide greater specificity, support, guidance, and increased coordination with applicants "and between staff. These meetings provide project assistance to applicants and those considering becoming applicants and improve coordination between all the,. functions who are involved in the development approval process. This group includes_representatives from Planning; Building, Economic Development, Public Works, Fire, Police, and Water Resources. The meetings served to insure all issues are identified and shared up -front, and encourage teamwork and group problem solving. Project applicants can attend these meetings, and have benefitted from them with a better understanding of processes and conditions, and from expedited project approvals. Additional process and procedure changes include the creation of "completeness" checklists, and updated handouts. This will reduce uncertainties about whether a project application is "complete ", and provide immediate notice to applicants when additional materials are necessary to complete an application. Updated handouts will better inform potential applicants of the requirements and processes associated with various land use approvals. Finally, the Planning website is being updated to make it more user friendly and interactive. Form and handout revisions and website overhaul will be completed in 2012. Status, Legislative Changes: In process. In December 2011 the City Council approved changes to the Implementing Zoning Ordinance intended to aid the Council's economic development retention and attraction goal, and the goal of filling empty space. The need for these changes was- identified by Development Review` Committee members,.including the Economic Development and Planning Managers, based on issues that have.arisen`in the recentpast. Changes were approved in sections 4, 7, 8, and 24 of the IZO. These will allow; respectively:, greater flexibility of allowable uses in street fronting buildings; bed and breakfast <establislnnents'sin residential, structures with historic or unique architectural characteristics;, tasting rooms:in business parks and industrial areas; and extensions of up to three years for site plan and architectural review approvals. In addition, the- Commercial.Linkage fee was updated in May 2011. The fee now applies to onlynew'nonresidenti'al construction. The change is aimed at addressing the potential disincentive to filling existing vacant office, industrial and retail space created by requiring.payment'of the Commercial Linkage Fee for tenant improvements in existing nonresidential buildings and /or changes in nonresidential use that increase the number of employees. to 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. (Areas for consideration include: completing the work of the Development Code Advisory Committee related to roles and responsibilities; completing hillside development ordinance, establish definition /guidelines for-mixed use development, review tree ordinance, local density bonus ordinance, updating historic district guidelines, revising parking requirements for single family homes, allowing incidental uses as part of allowed uses, and simplifying the .CUP process to increase the types of permitted uses within zones. Status: Limited. Progress, Zoning Code amendments are limited to those discussed in the preceding status summary. Limited staff time and financial resources have been the largest obstacles in moving forward on additional changes to the Development Code. Priority: Review development impact fees for reduction opportunities, with the intention of avoiding, negative impacts to planned infrastructure projects and General Plan. Status: In process. In September 2011, staff presented a report to the City Council regarding the areas within the City's development impact.fee structure that afford opportunities for reductions. Some of these reductions.are a function of index updating, and require no additional action. Others required fee analysis and legislative changes. Council provided direction to refine staff, s review. In December 2011, staff returned with amore focused analysis of fee reduction opportunities. Based on that recommendation, Council provided authorization t6proceed with studies necessary to quantify, and provide sufficient findings that could be used to reduce open space fees, facilities fees, traffic impact fees, water and wastewater connection fees, and to modify automatic annual adjustment mechanisms. Staff has, or is in the process of executing professional service agreements to prepare updated development and capacity fee study reports. Those reports will form the basis for restructuring and reducing development impact fees, as the Council deems appropriate. Corincil.has,requested that these fee studies be completed; and the item brought back to Council for decisions in March 2012. In addition and as discussed in the previous status update, the City Council modified the Commercial Linkage fee in May 2011 to limit application of the fee to new nonresidential construction only, making it less costly for businesses to re- occupy building.space. 4. Category: Economic Development: Goal: Attract and Retain Businesses in Petaluma to enhance the tax base, jobs and quality of life for the community. Priority: Implementvan overall economic. development strategy that places priority on.strengthening existing businesses and attracting those new businesses that add value. Status: In Process. Emphasis has been placed, as recommended in the City's Economic Development Strategy, orr.business retention, and filling empty space. The Economic Development Manager was hired in May 2011, and since then has worked closely with businesses looking to expand their activities, relocate to or elsewhere in Petaluma, and those needing assistance navigating development and permitting processes. Two of the larger businesses assisted "during this period were LabCon, and Lagunitas Brewery, although several others have benefited from such assistance as-well. The Economic Development Manager conducted site visits to 48 of 50 businesses that generate over 25 percent of the City's sales tax.proceeds, to get a better understanding of their need for city services. In addition to these meetings, she completed a business satisfaction survey, which will be used to modify the way city services are delivered to better meet the needs of the broader business community. She has also developed productive working relationships with the Chamber of Commerce, the Downtown Association, the Sonoma County Economic Development Board and with similar and related organizations. The City's Economie'Development Strategy calls for creating and coordinating with business clusters. During her first seven months, the Economic Development Manager has been active in meeting with dairy and food processers, and is coordinating with City staff to seek alternatives to on -site wastewater pre- treatmeni,facilities. She has also, with input of the Technology Committee and the IT department updated the City's Economic Development Web site, to make it more useful and easier to navigate. As indicated previously, the Economic Development Manager is an active member of the City's new Development, Review Team, and played a key role in developing amendments to the Zoning Ordinance adopted by the Council in.2011 that provide more flexibility in the use of empty commercial, industrial, and residential space. Priority: Organize and staff a City economic development function. Status: Done. An Economic .Development /Redevelopment Manager was hired in May 2011, and has been actively engaged in implementing the economic development plan since her arrival. Priority: Pursue Green technology, taking advantage of available funding and promoting available programs. Status: Ongoing, as time and opportunity permit. Available grants continue to be sought to meet City needs and fund desirable projects. There was limited activity in this I area in 2011. In January, 2011 approximately $115,000 in- monies, remaining from a Federal Stimulus Bill grant awarded to the City in 2009 were' reallocated to a PG &E streetlight retrofitting program. `This will convert approximately 200 streetlights in the downtown and adjacent high- traffie'areas to LED technology. PG &E will be managing this project, which has not yet: completed. In December, 2011 the City Council approved an on -bill financing loan agreement with PG & E to make energy efficiency improvements at the Swim Center, the Cavanaugh Recreation Center, Soup Kitchen, Airport, Senior Center Animal Shelter,_ Corporation Yard, and Fire Stations 1, 2, and 3. The loan will be repaid usingthe energy savings that result from the improvements that will be made. With respect to the Swim center, the project includes boiler replacement and new circulation pumps and will.be completed either prior to or immediately following the 2012 swim. season. Additional energy savings are anticipated from the purchase of new insulating pool covers. A new set of Swim Center pool covers has been ordered and will be purchased by Regency. These improvements address concerns raised at last year's goal setting session, which were placed in the '- Parking lot ". 5. 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: Underway. Petaluma Friends of Recreation, ,a grass -roots citizen group, has developed a plan to campaign for a parcel tax initiativeto fund Parks and Recreation projects. Among their identified and proposed projects, as a top priority, is funding for Phasel of the East Washington Park project. As well, staff. monitored, commented on, and supported. changes to Open Space District Matching; Grant policies and procedures that will assure the $2,000,000 in funding identified for East Washington Park will remain available to"the, project until December of 2016. Priority: Conduct - planning and permitting work for transportation improvements, to be ready to build when money is available. Status: In Process. Design work commenced on the US 101 undercrossing structure (Rainier) last year. That work will be built concurrently with the MSN C -2 HOV Widening. Project, when the MSN project is funded. The design work is supported by the City through a cooperative agreement with Sonoma County Transportation Authority (SCTA'):approved by.the_Council in.November-2010. As the Council is aware, $7 million in funding was secured on March 17, 2011 by the City /PCDC through a private placement financing to provide the City's share of costs associated with incorporating the Rainier Undercrossing into construction of the Highway 101 Widening Project. A cooperative agreement for that work was executed with SCTA in April 2011. This lb funding is currently held in trust, awaiting the City's direction to release it to SCTA when the funding is needed. In addition to this transportation planning, City staff completed Urban Water Management and.Stormwater studies in 2011, which provide basis for capital planning in the areas of water, recycled water, and stormwater conveyance and collection. As well, the Shollenberger Mitigation, Monitoring, and-Maintenance Plan is completed and is scheduled for Council. consideration in March 2012, a necessary step in preparation for Army Corps of Engineers dredging. Priority: Complete Flood Control project Status: No Progress. Progress is stalled on this project: Differences of opinion between the City and the Army Corps of Engineers regarding whether City match requirements for the project have been met, have not been resolved. Funding was not included in the federal budget for the::fiscal year. Priority: Pursue funding for Trestle restoration Status: Underway. In August 2010, the Council authorized application to the California Coastal Conservancy for $500,000 for'the planning, engineering and design phase of the Trestle Rehabilitation. That funding was secured, and the process of designing Trestle improvements is currently underway. A status report on design alternatives will be presented to the City Council.in February 2012. In the meanwhile, staff continues to be on the search for additional grant and local monies to fund the construction phase of the project. Parking Lot (in alphabetical order): e ARNO /CUP - Revisit • Charter amendment - complete e Charter amendment dealing with vacancy such as we had after November 2010 • City Hall rehab • City Hall lobby — Expand allowed information to include other agencies • Corp Yardrehab e Crack down on illegal advertising — fixed private signage in the public right -of -way o Enforceable Campaign Sign Ordinance o Fire Sprinkler retrofit program —water main down Petaluma Boulevard — how to fund? e Fire Station No. 1 o Fire Stations No. 2 and 3 — upgrade, design work to modernize e Flood Control e LaCresta/Paula Lane grants o Paula Lane — Staff was able to sustain negotiations with the property owners, culminating in execution of a purchase and sale agreement for the value established by an appraisal and accepted by the Open Space District. The Conservation Easement, a necessary component of the acquisition was drafted l� and is under review, and the'grant agreement is being prepared by the Open Space District. An amendment;and extension to the purchase and sale agreement has been negotiated with the property owners. It appears acquisition will be complete in FY 11 -12. o LaCresta — The acquisition of the LaCresta property was negatively impacted by the downward spiral of the real estate market. The project was conceived to include a 50 %- donation of property from the owner, CalWater, intended to provide the 50 %o match requirement of the grant. The de- valuing of the property has impaired the ability and /or willingness of CalWater to consider a donation of the magnitude originally envisioned. While the-owner remains a willing seller and donor, there will likely need to be some rebound in the market, or award of funding from an alternative source. o City Staff monitored, commented on, and supported changes to Open Space District Matching Grant policies and procedures that will assure funding awarded for this acquisition will remain available to the project until December of 2014. e Landscaping and Lighting Districts that decide how to fund repair and maintenance e List of issues /projects we can move forward with incase of a "windfall' e Mighty Midget — volunteers are preparing business plan • Police Station e Rainier • Storm water funding- The HDR report was presented to the City Council last Spring. • Swim Center upgrades - Completed, as noted in Status update e Tobacco ordinance e Zip Car or City Share cars for rental downtown by people who don't need a car 24/7. Would need parking. 16 ATTACHMENT 2 Parking Lot (in alphabetical order): • ARNO /CUP - Revisit • Charter amendment - complete • Charter amendment dealing with vacancy such as we had after November 2010 • City Hall rehab • Corp Yard rehab • Fire Sprinkler retrofit program — water main down Petaluma Boulevard — how to fund? • Fire Station No. 1 • Fire Stations No. 2 and 3 — upgrade, design work to modernize • Flood Control • LaCresta grant • Landscaping and Lighting Districts that decide how to fund repair and maintenance • List of issues /projects we can move forward with in case of "windfall' • Mighty Midget — volunteers are preparing business plan • Police Station • Rainier • Tax measures. Evaluate options including parcel tax, sales tax, other assessments • Zip Car or City Share cars for rental downtown by people who don't need a car 24/7. GJ ATTACHMENT 3 RESOLUTION. ESTABLISHING COUNCIL'S GOALS AND PRIORITIES FOR 2012 AND 2013 WHEREAS, the City Council, City Manager, City Attorney, and City Clerk held a workshop on February 4, 2012; 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 2011 was reviewed; and and WHEREAS, priorities from 20011 were either completed, continued, or modified; WHEREAS, additional goals for the two year period;encompassing 2012 and 2013 were proposed and discussed with the Council and public; 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 4, 2012 goal setting workshop, and. incorporated herein as Exhibit 1. 6 EXHIBIT 1 CITY COUNCIL GOALS AND PRIORITIES FOR 2012 AND 2013 Cate2ory: Financial Stabilitv 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. 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. Priority: Implement a fiscal_sustainability plan (including implement a second PERS Tier) I . Update the Five -Year Financial Forecast 2. Determine and implement budget policies necessary to foster long -term financial stability Priority: Re- establish General Fund reserves necessary for cash flow and unforeseen circumstances Update the City's list of potentially surplus properties, and determine which, if any should be marketed Determine Council policy regarding the set -aside for reserves from new revenue sources including taxes from new commercial development, savings from consolidations, etc. Priority: Continue to seek opportunities to enhance revenue sources 1. Gauge the business Community's support for increasing the TOT to fund tourism and downtown and citywide promotion and economic development. Priority: Continue to Develop the City's Website to allow for more efficient and interactive communication between residents and City departments 1� 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 Priority: Re- institute no -cost employee recognition programs: quarterly, annually, longevity Category: Healthy Development, Sustainability, and Economic Development GOAL: Create and Implement clear direction on development and sustainability objectives. Priority: Implement the Central Petaluma Specific Plan —maximize development potential around transit - oriented development. Priority: Complete development impact fee review and implement fee reductions, avoiding negative impacts to planned infrastructure projects,and General Plan. 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 for filling empty space. 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. I . update parking requirements 2. revise the sign ordinance 3. 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 4. revise smoking ordinance to address`multifamily residences and outside areas 5. update historic district guidelines. 6. define mixed use GOAL: Attract and Retain Businesses in Petaluma to enhance the tax base, jobs and quality of life for the community. Priority: Implement an overall economic.development strategythat places priority on strengthening existing- businesses and attracting those new businesses that add value. Priority: Identify funding sources that can be used to replace monies lost through dissolution of PCDC. 1. Gauge the business community's support for increasing the TOT to fund tourism and downtown and citywide promotion and economic development, and pursue a tax increase measure, as appropriate. Priority: Focus attention on supporting food processing and' alternative energy business clusters. 1. Evaluate, plan, and implement infrastructure necessary infrastructure improvements. Priority: Focus additional attention on,supporting business retention and development in transit - oriented areas, including the SMART station area, and in the downtown. Priority: Coordinate the actions required to obtain "Coast Guard City" designation. Cate2orv: 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). Priority: Inventory and Assess Water, Wastewater, Stormwater, and Street systems 1. Develop Capital Inventories 2. Develop,Capital Replacement Schedule 3. Prioritize improvements 4. Identify Capital funding sources Priority: Complete Flood Control project Priority: Pursue funding for Trestle restoration V1 n