Arroyo Grande City Council
May 13, 2025

A review of the current Visitation
Reporting and media campaign
performance.

DIGITAL CAMPAIGN

PERFORMANCE REPORT

2.74 M+ 1.19% 32,559

1.04 M+ 719 k+
Topline view of total campaign metrics
from 11.10.24 thru 4.18.25
Total Digital Impressions
Total Paid Social Media
Impressions
Total Video Impressions
across all platforms
Total Average Overall CTR
across all digital platforms
Total Clicks across all
digital platforms
Campaign Reporting for Paid Digital Media Actions

REPORTING
REFLECTS NOV 10 -
APR 18

LOCATION VISITATION
REPORT
2M+ 0.63%
$30.3k
427
12,656
898 $71.06
$33.67
Campaign metrics from 11.10.24 thru 4.18.25
Total LVR Tactics Exposed
Impressions
Total LVR Tactics Clicks Overall LVR Tactics
Click-Thru Rate (CTR)
Total Exposed Visits Total Exposed Unique Visitors Overall Cost Per Unique Visitor
Total Digital LVR Impressions
Spend to End of April 2025
(CTV, Pre-Roll, Display, & Interstitials)
Overall Cost Per
Exposed Visit
Arroyo Grande: Location Visitation Report

REPORTING
REFLECTS NOV 10 -
APR 18

2.74 M+
32,559 1.19%
Total Digital Impressions
Total Average Overall CTR
across all digital platforms
Total Clicks across all
digital platforms
Sales Funnel

AWARENESS

CONSIDERATION
INTENT
VISIT
138
Hotel Page Visits
159
Book Now Clicks
.91%
“Soft” Conversion Rate
898
Total Exposed Visits
$33.67
Cost Per Exposed Visit

REPORTING
REFLECTS NOV 10 -
APR 18

VISITATION PER

LOCATION
Total Exposed
Visits:
898
Total Exposed Unique
Visitors: 427
Website - Soft
Conversions - Hotel Page
Website - Soft
Conversions - Book Now
Locations
Total across all
Hotels: 186
(64 by 3.11)
Total across all Hotels:
95 (29 by 3.11)
Total across
all Hotels: 138
Total across
all Hotels: 159
The Village - Arroyo Grande 712 332
Best Western Casa Grande 57 35 31 39
Days Inn (was Pismo) 41 23 23 10
Hampton Inn & Suites 29 14 23 34
The Agrarian Hotel 24 7 33 33
Beachway Inn 12 7 6 6
Aloha Inn 15 6 15 23
Arroyo Village Inn 8 3 7 14
REFLECTS NOV 10 -

REPORTING LOCATION VISITATION REPORT
APR 18

Total Exposed
Visits: 898
Total Exposed
Unique Visitors: 427
Population
All Markets
Growth Markets 601 307 13,175,753
Nurture Markets 297 120 1,247,217
Growth Markets
All Bay Area 240 108 1,335,372
All So Cal Area 361 199 4,639,394
Audience from 11.10.24 thru 4.18.25

VISITATION BY MARKET

OVERVIEW

LOCATION VISITATION REPORT REPORTING
REFLECTS NOV 10 -
APR 18

Total Exposed Visits: 898 Total Exposed Unique Visitors: 427 Population Growth Cities Growth Visits: 601 Growth Unique Visitors: 307 Los Angeles, CA 114 48 3,820,914
San Francisco, CA 49 23 808,988
Stockton, CA 41 19 319,543
Sacramento, CA 37 17 526,384
Oakland, CA 30 14 436,504
North Hollywood, CA 29 15 64,587
Hayward, CA 28 13 155,675
Anaheim, CA 23 9 340,512
Riverside, CA 21 6 318,858
Oxnard, CA 19 8 198,488
Mission Viejo, CA 16 6 90,624
San Jose, CA 14 8 969,655
Berkeley, CA 12 4 115,466

TOP VISITATION PER GROWTH
CITY

REPORTING
REFLECTS NOV 10 -
APR 18

Total Exposed
Visits: 898
Total Exposed
Unique Visitors: 427
Population
Nurture Cities Nurture Visits: 297 Nurture Unique Visitors: 120 Bakersfield, CA 77 26 413,381
Salinas, CA 72 20 163,542
Fresno, CA 27 10 545,716
Monterey, CA 14 8 29,116
Hollister, CA 10 4 44,658
Porterville, CA 9 4 62,876
Tulare, CA 7 4 71,092
San Luis Obispo, CA 7 2 49,244
Paso Robles, CA 5 5 31,134
Audience from 11.10.24 thru 4.18.25

TOP VISITATION PER NURTURE
CITY
REFLECTS NOV 10 -

REPORTING LOCATION VISITATION REPORT
APR 18

Total Exposed
Visits: 898
Total Exposed
Unique Visitors: 427
Total
Impressions
Total Exposed Visits
Per 1K Impressions
Ad Tactic
CTV/OTT 598 294 339,068 1.76
Pre-Roll Video * 3 3 160,270 0.02
High Impact Interstitials 53 28 185,368 0.28
Standard Display
Banners 177 102 1,281,705 0.14
Performance from 11.10.24 thru 4.18.25
* Only tactic no longer running is Pre-Roll Videos, Prior Reporting up to 3.11.25

VISITATION PER AD TACTIC
REFLECTS NOV 10 -

REPORTING LOCATION VISITATION REPORT
APR 18

Tourism industry average customer journey is 30 days from first ad exposure to tracked visitation - April visitation is thru 4.12.25.

VISITATIONS PER WEEK

LOCATION VISITATION REPORT REPORTING
REFLECTS NOV 10 -
APR 18

Tourism industry average customer journey is 30 days from first ad exposure to tracked visitation thru 4.18.25 - Full April visitation will be in the next LVR in May 2025

VISITS VS VISITORS

LOCATION VISITATION REPORT REPORTING
REFLECTS NOV 10 -
APR 18

Tourism industry average customer journey is 30 days from first ad exposure to tracked visitation thru 4.18.25.

Feb less media ran until March new ad creative launched. Full April visitation will be in the next LVR in May 2025

COSTS PER VISITS VS

VISITORS

LOCATION VISITATION REPORT REPORTING
REFLECTS NOV 10 -
APR 18

Insights and Actions

INSIGHTS ACTIONS
All key visitation metrics have improved month over month as campaign continues to scale Continue to optimize campaign to maximize effectiveness Cost–per-visit and cost per unique visit demonstrate a positive return on marketing investment, with a $71 cost per unique visitor overall and <$30 cost per visitor over the past two months
Continue to monitor performance and look for added
efficiency as the new campaigns launches, re-targeting
scales up, and seasonal booking increases
Nurture markets continue to exceed Growth markets in per capita visitation
Look to increase reach and exposure in Growth Markets,
exploring tactics like additional paid social, influencer marketing, heavy-up in CTV/OTT, and recently launched
OOH billboard
CTV/OTT is the most effective tactic at driving visitation Increase investment in CTV/OTT and scale back Pre-Roll until performance improves
While marketing has lead to significant incremental visitation to the Village, converting visitors to overnight stays at properties could be improved
Explore media opportunities and events that encourage new

Metric Benchmark Current % +/- Benchmark
CTR 1.12% 1.19% +6.25%
Soft Conversion
Rate .56% .91% +62.5%
Cost per Exposed
Unique Visitor $125.78 $71.06 -43.5%
Cost per Exposed
Visit $67.34 $33.67 -50%
Hotels as %
of Total Visits 21% 20.71% -1.38%

BENCHMARKS REPORTING
REFLECTS NOV 10 -
APR 18

APR
Channels
Define
Design
Deploy
Diagnose
4/7 4/14 4/21 4/28
Strategic Media Reallocations
+ Optimizations
6-Month Report
Development
Bespoke Hotel Collateral Toolkit Template Development
TBID Board Meeting
6-Month Report Update
LVR Reporting Pull + Data
Analysis
Website Design Update +
Additional BOOK NOW
Button on Homepage
Bespoke Hotel Collateral
Toolkit Asset Development
Website Consistency Audit +
Action Implementation

Marching into the high
season and FY 25/26

THINGS TO COME IN FY 25/26
The following activities are scheduled to begin soon…
➔ VisitArroyoGrande.org WordPress website rebuild & development ➔ Hotel-specific paid media assets added to our media mix for promotions ➔ Campaign Video Production
➔ Campaign Creative asset optimizations
➔ Summer concert series promotions

Final 6 Month Thoughts

Commune is incredibly proud to be working
with the City of Arroyo Grande and the AG
TBID. We’ve made significant progress in just
six months ensuring the city’s money is
effectively and efficiently spent leading to
measurable ROI. The data proves this out.

But what the data doesn’t prove is that in just
six months we’ve built relationships and
friendships that reinforce why we really
started this business - authenticity,
effectiveness, and human connections that
transcend a contract. Thank you for helping us
live up to our mission and we can’t wait to see
even bigger and better results to come,
Your Commune team,

Request for Proposals:

Marketing, Communications, Website Management, and Social Media Services Proposal Submittal Deadline: April 29, 2024
Introduction
The City is seeking professional, full-service, integrated marketing, advertising, communications, social media, and website maintenance services for their tourism brand, Visit Arroyo Grande, and is requesting proposals from qualified firms.

Firms should have the capability and experience required to provide comprehensive, strategic, and innovative services on designated projects. The goal of the marketing program is to attract tourists to the area to increase occupancy and average daily room rates at Arroyo Grande lodging properties.

Visit Arroyo Grande’s brand (logo, color palette, tagline, etc.) is established. The City wishes to build upon this identity in its future marketing efforts with the selected firm.

Qualified firms shall make recommendations for the coming fiscal year (July 1, 2024 to June 30, 2025); the contract will be for one year with the option to extend for a second year.

Background
In 2011, the City of Arroyo Grande formed a Tourism Business Improvement District (TBID). The TBID Board of Directors operates as a destination marketing organization under the name of Visit Arroyo Grande.

Spearheaded by Arroyo Grande lodging businesses, Visit Arroyo Grande is comprised of seven (7) hotels and at least sixty-one (61) vacation rental/home stays. It is governed by a Board of Directors representing lodging partners and businesses in the tourism/hospitality industry. The purpose of the TBID is to promote scenic, recreational, cultural, and other attractions in the district (the City of Arroyo Grande) as a tourist destination for the benefit of lodging operators.

ATTACHMENT 5

2 | P a g e
Proposal guidelines
Firms are expected to prepare beyond the one-year mark (July 1, 2024 to June 30, 2025) to implement certain projects; however, projects beyond June 30, 2025 are dependent on the annual approved budget.

The successful firm will coordinate all services under an Agreement with the City of Arroyo Grande or their designee(s). Firms may provide additional creative/innovative suggestions for deliverables identified in the proposal as “optional deliverables.” Firms may submit proposals for one or more components of this Scope of Work.

Budget
Marketing agency contract including media buys: not to exceed $225,000 Term
This RFP is for a one-year agreement with the option to extend for a second year.

Marketing and Communications
Develop and implement a variety of promotional, publicity and advertising programs, and informational materials consistent with specifications provided.

Develop a comprehensive strategic marketing and advertising plan that addresses the following:
• Propose new or expand current marketing programs to promote the District (City of Arroyo Grande) and submit timelines for development/implementation. Campaign may include but not be limited to, digital, print, video, radio, outdoor, online media, and direct marketing;
• Identify strategies that increase overnight stays, especially during off-peak seasons; • Propose creative tactics such as advertising campaigns and events and packages; and • Develop and propose a system of measurable results and outcomes.

Online Strategy
• Complete reports to coincide with monthly meetings of the committee - show metrics and report implications and suggested adjustments and report monthly to lodging operators, TBID and Arroyo Grande City Council;

3 | P a g e
Online Strategy continued
• Explain what tools your agency has available for online media monitoring, reporting and analysis, and brand/reputation monitoring; and
• Generate all images/creative assets to be paired with posts. Photographs and branding guidelines will be provided by Visit Arroyo Grande from internal marketing database.

Firms should also provide the following information:
• Examples of copy created for online platforms;
• Examples of graphic content to be paired with editorial copy; • Sample of monitoring report format;
• Best practices report, example of online data analysis and action items; and • A description of how agency stays at the forefront of technology and emerging media.

Website
The firm will take responsibility for all aspects of the Visit Arroyo Grande website, content management system (CMS), and related hosting. The scope of services should include, but is not limited to, all software, hardware, administrator and end-user training, hosting, SEO programming, and other services required to implement and support the website and should:
• Be consistent with current and future Americans with Disabilities Act accessibility guidelines and any other applicable state and federal accessibility requirements; • Include a privacy policy;
• Be capable of capturing email addresses; and
• Include a blog.

City/Chamber Involvement
The City and South County Chambers of Commerce will make every effort to provide demographic information, photos, existing information on economic development tools, reports, etc. The firm should strive to be self-sufficient to the extent possible.

Consideration/Meeting Requirements
The qualified firm should be prepared to meet directly or confer over the phone as needed. The firm will be required to attend regular TBID meetings, and Arroyo Grande City Council Meetings, as needed, prepare an Annual Report, and make annual presentations.

4 | P a g e
Agreement
The project agreement will be based on the final scope of work that is mutually agreed upon between the City and firm(s). The agreement will be negotiated for the project for the extent of services to be rendered and for the method of compensation. Firm(s) are requested to submit a lineitem cost estimate that is realistic for the proposed approach. The budget should cover all costs including fees, mileage, and production costs. Firm(s) shall not perform any work on the project before execution of a written agreement by both the City and the Firm(s) and the furnishing of the required insurance certificate and business license by the Firm(s). The City requires a minimum insurance limit of $1,000,000 each for general liability, automobile, and errors and omissions. The draft Consultant Services Agreement is attached and should be reviewed before the RFP submittal.

Key Dates
April 1, 2024
Release of RFP
April 29, 2024
Deadline for submittal
June 2024
Award of contract
July 1, 2024
Contract commencement
Questions
Questions regarding this RFP shall be submitted to Sheridan Bohlken, Recreation Services Director, City of Arroyo Grande, via email at [email protected]. Questions with their answers will be posted on the City’s website.

Proposal Requirements
The document should be standard (8½” x 11”) letter-sized paper.

The name and resume of the responsible person who would be in charge of the project, information on team members by role, an estimate of the time required to complete the project; and disclosure of billable rate for each task.

5 | P a g e
An executive summary of the proposal being submitted.

The proposed fees are to be broken down by task demonstrating how the fee was calculated. The cost proposal shall provide a specific fixed cost estimate and a “not to exceed” cost ceiling. The proposal shall address all hourly wage rates, including all reimbursable expenses and overhead.

Describe the Firm’s experience, especially as related to completing similar projects as being discussed in this RFP.

Identify and provide resumes of any sub-consultants who will be utilized on this project.

A proposed project schedule for the fiscal year shall be included in the proposal with verifiable references.

Selection Process
The City of Arroyo Grande and an Ad-hoc Committee of the AGTBID will review responses to the Request for Proposal based on the evaluation criteria below and make a recommendation to the AGTBID Board of Directors which will then forward their recommendation to the City Council for final approval.

Qualified firms will be invited to give an oral presentation on their proposal, at the discretion of the TBID Board of Directors.

The City reserves the right to reject any proposals and to award contract(s) for any, all, or none of the aspects of the Scope of Work.

Evaluation Criteria
A. Suitability of the Proposal – the proposed solution meets the needs and criteria presented in the RFP.

B. Expertise in recommending and communicating appropriate technical and aesthetic solutions as demonstrated by the proposal and references.

C. Aesthetic Capabilities – Prior work reflects artistic and innovative, user-friendly interfaces that engage communities and viewers.

D. Proposal Presentation – The information is communicated in a clear, logical manner and is well organized.

General Information
A. The City reserves the right to request additional information from any or all the respondents.

6 | P a g e
B. The City reserves the right to reject any or all the proposals. Late or incomplete proposals may not be considered. The City shall have sole discretion in determining the completeness of each proposal.

C. The City shall reserve the right to contact past clients for references.

D. The terms and scope of the agreement will be determined based on professional negotiations between the City and the prospective Firm. If the City and the prospective Firm fail to reach a contractual agreement, the City may negotiate with any other highly-ranked consultant.

E. The City reserves the right to waive minor discrepancies and to reject any and all proposals for any reason.

Proposal Submittal Requirements
Quantity - Four (4) copies (three bound and one unbound), plus one electronic copy in Adobe Acrobat (PDF) format.

Deadline for Submittal - The filing deadline for submittal of the above proposal is 5:00 p.m. on Monday, May 13, 2024. The City reserves the right to extend the deadline date. All documents should be emailed to [email protected] or sent in a sealed package, clearly marked “RFP AGTBID” to Sheridan Bohlken, City of Arroyo Grande, 1221 Ash Street, Arroyo Grande, CA 93420.

Specific Deliverables
The consultant shall develop a comprehensive portfolio that addresses, at a minimum, the following:

1. Develop strategy to quantify success on marketing campaign through initiatives that measure return on investment;

2. Next phase brand identity that includes but is not limited to advertising campaigns;

3. Develop tourism incentives that include package deals for hotels;

4. Enhance social media presence in Facebook, Twitter, Instagram, Pinterest, YouTube and other social media outlets as they arise. Integrate social media with visitarroyogrande.org and create other strategies to boost internet traffic visibility;

5. Build a feeder market strategy to increase traffic from cities LA and SF;

6. Respond to TripAdvisor, Travelzoo, and other internet-based tourism sites; and

7. Collaborate with major attractions and special events.

Firms may provide additional creative/innovative suggestions for deliverables identified in the proposal as “optional deliverables”.

Item 11.b.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Director of Public Works Ashley Garcia, Human Resources Officer
BY: Aleah Bergam, Management Analyst
SUBJECT: Operational and Organizational Assessment
DATE: May 13, 2025
RECOMMENDATION:
1) Receive the Report and Recommendations in the Operational and Organizational Assessment; and
2) Direct staff to move forward with incorporating specific priority recommendations as Service Level Requests into the FY 2025-27 Biennial Budget.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The fiscal impact in Table 1 below anticipates funding the Economic Development Coordinator on October 1, 2025, and the Assistant City Manager on January 1, 2027. For recommendation 12, staff has identified a software platform that can help automate and organize Public Records Requests and is requesting funding for that software as part of the budget process.

Several recommendations in the report do not have a fiscal impact or are already funded and are listed in Table 1 below with no dollar amount listed in the fiscal impact columns.

These recommendations are operational and do not need additional resources to accomplish. Examples of these recommendations include formalizing the Planning Manager supervisory responsibilities to reduce the Director’s span of control, retitling the Executive Secretary in Human Resources to Human Resources Specialist and establishing a framework to evaluate special events programming. The report recommended incorporating modernization efforts to streamline and reduce paper-based processes, replace software, and leverage the upcoming IT Master Plan to determine needs. Streamlining processes and leveraging existing technology does not have an immediate fiscal impact. Recommendation 5, Continue modernization efforts to streamline and reduce paper-based processes, is already in progress with the Utility

Item 11.b.

City Council
Operational and Organizational Assessment
May 13, 2025

Billing/Payroll software implementation of Tyler Technologies’ Munis. The funding for the implementation of Tyler Technologies’ Munis is already in the CIP Program Budget.

Some of the recommendations listed below include a possible revenue increase or a budget decrease and savings to the General Fund. Collecting review fees at the time of application is anticipated to lead to a revenue increase, due to the change in when payments are received. Plan review fees are based on customer need, and exact estimates are hard to calculate without historical data. The revenue estimates have not yet been adjusted but will be reviewed when this change is made. In addition, for Recommendation 16, one of the restructuring changes in the Engineering Division includes reclassifying the Assistant Project Manager to an Engineering Technician, which is an estimated budget decrease in both FY 2025-26 and FY 2026-27. Staff anticipates reclassifying the Engineering Inspector to Assistant Engineer, which has no fiscal impact.

For Recommendation 18, the transition of TBID to the newly established Economic Development Program would decrease the General Fund Budget as this transition would fund 50% of the position with TBID funds.

The total fiscal impact of all the requested recommendations to implement in the FY 2025- 27 Budget is an on-going net savings to the general fund.

The remaining recommendations will be considered in the development of future budgets, as resources and Council Goals change.

Item 11.b.

City Council
Operational and Organizational Assessment
May 13, 2025

Table 1: Estimated Fiscal Impact of Specific Priority Recommendations BACKGROUND:

In the FY 2023-25 City Council Goals workplan, specifically under the “Funding” goal, the Council directed to Evaluate and Obtain Economic Development management services.

In reviewing peer agencies and their specific models for Economic Development management services, staff concluded the need for a focused organizational assessment in order to determine how Economic Development management services should be Number Recommendation FY 2025-26 FY 2026-27
1 Add one Assistant City Manager (1.0 FTE) to
the organization. $ - $ 135,900
3 Establish a proactive Economic Development
Program. - -
4 Create an Economic Development
Coordinator to support the Economic
Development Program.
82,875 114,400
5 Continue modernization efforts to streamline
and reduce paper-based processes - -
6 Formalize Planning Manager supervisory
responsibilities to reduce the Director’s span
of control.
- -
9 Collect plan review fees at the time of
application. - -
11 Retitle the part-time Executive Secretary
position in HR to Human Resources
Specialist.
- -
12 Develop a plan to automate the public records
requests by leveraging existing software to the
greatest extent possible.
12,000 12,000
16 Restructure engineering resources to align
with Council infrastructure goals. (32,200) (33,300)
18 Transition the Tourism Business Improvement
District (TBID) responsibilities to the
Economic Development Program.
(83,938) (99,700)
19 Establish a framework to evaluate special
events programming. - -
$ (21,263) $ 129,300
General Fund Impact

Item 11.b.

City Council
Operational and Organizational Assessment
May 13, 2025

incorporated into the City structure and to evaluate the structure, staffing, supervision, succession planning, and operational efficiency of all City departments with the exception of Police and Public Works operations.

On October 3, 2024, the City issued a request for proposals (RFP) for an Operational and Organizational Assessment. In November 2024, after reviewing 9 proposals, the City selected Raftelis to conduct the operational and organizational assessment and executed a contract with Raftelis in December 2024.

The work program consisted of four phases below:

1. Project Kick-Off

2. Complete Staff Interviews and Onsite Work

3. Conduct Organizational and Operations Assessment

4. Prepare Deliverables
The process began in January 2025, with a kick-off meeting with the City’s designated project team to review the details and expectations of this assessment. Next, Raftelis completed a site visit to engage with City staff the week of January 6, 2025. The project team met with 28 staff members from several City departments, including the City Manager’s Office, Community Development, Administrative Services, Legislative and Information Services, Recreation Services, and Public Works. The employee interviews gave the consultant team a better understanding of how work is performed and the specific challenges and opportunities related to staff capacity, organizational structure, workload management, and work planning. Additionally, the consultant team reviewed and analyzed data provided by the City, including but not limited to staffing and budget histories, available planning documents, and other documentation that details the operations and service-delivery approach. When appropriate, the information was compared to best practices guidelines from industry organizations and agencies. It was also compared to comparable cities on the Central Coast, chosen based on city size, organizational structure, and demographic profiles. These peer cities include:
 City of Atascadero
 City of Grover Beach
 City of Morro Bay
 City of Pismo Beach
ANALYSIS OF ISSUES:

Operational and Organizational Assessment Overview
The City partnered with Raftelis to conduct an operational and organizational assessment to help identify opportunities to meet City Council goals through organizational effectiveness and efficiency. City staff work diligently to meet the service level expectations of the community; however, as the community’s preferences and needs continue to grow and evolve, staff wanted to assess whether the current structure and

Item 11.b.

City Council
Operational and Organizational Assessment
May 13, 2025

staffing composition best support community needs. Moreover, staff wanted to identify opportunities to streamline or modernize longstanding processes through technology or improved functional alignment that enhances service delivery and optimizes staff skills and abilities.

The attached assessment (Attachment 1), prepared by Raftelis, includes a review of all City departments except Police and Public Works operations. The report includes evaluated opportunities for revenue growth through economic development efforts. Within the scope of departments included in the study, Raftelis engaged nearly every staff member through interviews and focus groups. The discussion focused on their roles and responsibilities, workload drivers, service level expectations, and opportunities for improvement. The work was augmented by data and benchmarking analysis, industry best practices, and the consultant team’s experience working in and for local governments nationwide and in California.

During the assessment, the consultants identified that the workload drivers and service level expectations continue to outpace resource capacity, especially as it relates to staffing. For an organization where staffing levels have only grown modestly over the past several years (once adjusted for Recreation Services program changes), the staffing and structural recommendations in the report recognize the need for strong collaboration across key functions to achieve City Council goals. Some examples include capital planning and delivery, infrastructure maintenance and program delivery, and customer service responsiveness.

Recommendations for new positions were carefully considered against the City’s financial backdrop while also identifying where full-time resources will be needed in the future and providing space for prioritization and implementation of such recommendations. Guiding principles for new positions included appreciation for whether the workload justified a fulltime resource to meet current and future demand and the City’s desire to have various positions functioning at their highest and best use. Key processes were also explored as part of identifying core services across the various departments. Operational efficiency recommendations highlight opportunities to enhance staff’s productivity through modernization efforts that improve transparency, responsiveness, and workflow. Once implemented, these recommendations support more effective processes that augment technology and reduce the amount of time staff spend completing various tasks.

Table 2 highlights the recommendations detailed in this report. Within each department, recommendations were grouped first by structure and staffing changes, then by opportunities to enhance operational efficiency. The recommendations are not in priority order.

Item 11.b.

City Council
Operational and Organizational Assessment
May 13, 2025

Table 2: Summary of Report Recommendations
Priority Recommendations Staff Recommends Incorporating into the FY 2025-27 Budget
Staff is requesting direction from Council on incorporating specific priority recommendations into the FY 2025-27 Biennial Budget. Staff is aware of budgetary and time constraints and has prioritized specific recommendations to implement in the shortterm and to allocate funding and time in the next biennial budget. The priority recommendations are:

Item 11.b.

City Council
Operational and Organizational Assessment
May 13, 2025

 Raftelis Recommendation 4: Create an Economic Development Coordinator to support the Economic Development Program.
o Hiring an Economic Development Coordinator is in direct support of the FY 2025-27 Council Goal of “Pursue New Revenue Sources”. An Economic Development Coordinator executes strategy to attract, retain and expand business within the City.
o Staff proposes funding this position on October 1, 2025.  Raftelis Recommendation 3: Establish a proactive Economic Development Program
o Developing a proactive Economic Development Program is in direct support of the FY 2025-27 Council Goal of “Pursue New Revenue Sources”. An economic development program supports future revenue growth through supporting commercial development which in return will promote and enhance the City’s overall tax base. There is a minor fiscal impact to establishing a proactive Economic Development Program.
 Raftelis Recommendation 1: Add one Assistant City Manager (1.0 FTE) to the organization.
o The City’s organizational structure currently relies on the City Manager to oversee staff within the City Manager’s Office, each department head and contracted or supporting agencies (e.g., City Attorney, FCFA). The result of this large span of control inevitably leads to the City Manager being heavily involved in day-to-day operations and management of all City departments, leaving limited time available for community engagement and pursuing strategic City priorities. A separate and distinct, full-time Assistant City Manager is recommended to divide functional oversight responsibilities and provide additional capacity. This kind of personnel investment is significant given the City’s financial context overall and is common among other benchmarking communities. This additional executive-level position allows leadership to be more responsive to the day-to-day needs of the organization as well as the Council's and community's long-term goals. o Staff proposes funding this position on January 1, 2027.  Raftelis Recommendation 5: Continue modernization efforts to streamline and reduce paper-based processes.
o The City is already in progress with the Utility Billing/Payroll software implementation of Tyler Technologies’ Munis. The funding for the implementation of Tyler Technologies’ Munis is already in the CIP Program Budget, but there is still an opportunity to utilize current technology to streamline processes and reduce paper-based processes.

Item 11.b.

City Council
Operational and Organizational Assessment
May 13, 2025

 Recommendation 6: Formalize Planning Manager supervisory responsibilities to reduce the Director’s span of control.
o There is no fiscal impact to formalizing the Planning Manager supervisory responsibilities to reduce the Director’s span of control, but implementing this change will allow the Director to serve a more elevated role in the various strategic priorities of the City. Per the report from Raftelis, it is a best practice to assign supervisory responsibility to the Planning Manager for the day-to-day operations of the Planning Division. The Associate Planner, Assistant Planner, and Permit Technician will report directly to the Planning Manager. In many local government community development departments, operational supervision is assigned to a Planning Manager, a Building Official, and, at times, a Code Enforcement Officer who reports to the Director. These positions provide daily oversight and accountability for the performance of the functional areas. Formalizing the Planning Manager’s oversight of the Planning Division staff creates structural alignment within the department, resulting in one direct report to the Director for each core function.
 Recommendation 9: Collect plan review fees at the time of application. o Currently, no fees are collected for plan review at submittal; they are instead collected when the permit is issued. It is best practice to determine and collect fees at the time of application submittal to ensure optimal cost recovery for staff time spent reviewing a project. Revenue collection also suffers if the application is not approved or if the applicant decides not to seek a building permit for some reason.
o The City will see a revenue increase in FY 2025-26 due to the change in when payments are received. Plan review fees are based on customer need and exact estimates are hard to calculate without historical data. The revenue estimates have not yet been adjusted but will be reviewed when this change is made.
 Recommendation 11: Retitle the part-time Executive Secretary position in HR to Human Resources Specialist.
o There is no fiscal impact in retitling the part-time Executive Secretary position in HR to Human Resources Specialist.
 Recommendation 12: Develop a plan to automate the public records requests by leveraging existing software to the greatest extent possible. o Staff is requesting funding for a software platform that can help automate and organize Public Records Requests, which will save staff time and free resources for other work. It will also reduce manual effort, ensure timely responses, and minimize non-compliance risk.

Item 11.b.

City Council
Operational and Organizational Assessment
May 13, 2025

 Recommendation 16: Restructure engineering resources to align with Council infrastructure goals.
o The current Assistant Projects Manager position is vacant, which creates an opportunity to restructure this position to an Engineering Technician and provide dedicated capacity for full-time design and inspections of capital projects. This allows other engineers within the division to focus on design review and contract management to expedite implementation. In turn, this relieves the City Engineer from project management and allows for more department and staffing management to ensure effective operations and accountability for service delivery. In addition, this position will relieve the City Engineer and senior engineers from day-to-day field work and allow them to focus more on strategic implementation of the capital projects plan.

It also offers a career path for entry-level staff to join the division and look forward to promotional opportunities. Based on Raftelis’ experience in the engineering industry recruitment field, it is quite difficult to hire qualified senior-level engineers, and an entry-level offers a startup opportunity and exposure to working with and learning from experienced staff within the division.
o Reclassifying the Engineering Inspector to Assistant Engineer has no fiscal impact and reclassifying the Assistant Project Manager to an Engineering Technician, is estimated to be a budget decrease in FY 2025-26 and FY 2026-27.
 Recommendation 18: Transition the Tourism Business Improvement District (TBID) responsibilities to the Economic Development Program. o This recommendation impacts the staffing composition and core services for the Recreation Services Department. The proposed reclassification of the part-time Recreation Specialist position reduces overall staffing levels; however, as part of workload assessment and review, this position spent nearly all its time on TBID-related activities. In addition, TBID’s responsibilities also fell to the Director. Removing this program from Recreation Services should ultimately provide enhanced capacity for the Director to provide strategic oversight for the department’s two core functions: recreation programming and special events.
o Staff recommends funding 50% of this position with TBID funds.  Recommendation 19: Establish a framework to evaluate special events programming
o Interviews indicated that there is limited bandwidth in Recreation for strategic priorities, such as strengthening sponsorship solicitation materials, and the risk of staff burnout or diminished service delivery if the events calendar becomes overprogrammed. To ensure the most efficient use of limited staff resources, the City will develop guidelines and a framework to evaluate special events each year, which could include identifying relevant

Item 11.b.

City Council
Operational and Organizational Assessment
May 13, 2025

metrics for event types, such as learning opportunities or cost recovery.

Based upon the developed framework, Recreation Services staff can focus upon a limited number of well-planned events and reserve some staff capacity for other important tasks.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Receive and file the operational and organizational assessment completed by Raftelis and direct staff to incorporate priority recommendations 1, 3, 4, 5, 6, 9, 11, 12, 16, 18, and 19 into the FY 2025-27 Biennial Budget;

2. Direct staff to incorporate alternative recommendations or only certain priority recommendations into the FY 2025-27 Biennial Budget; or

3. Provide other direction to staff.

ADVANTAGES:

Incorporating priority recommendations from the Operational and Organizational Assessment will increase overall City operational efficiency and staff responsiveness to the community. Allocating the funding to implement priority recommendations will increase organizational efficiency and improve operations and elevate the City to be in line with peer agencies and their corresponding staffing levels.

DISADVANTAGES:

Staff has not identified any disadvantages of receiving and filing the operational and organizational assessment and authorizing staff to incorporate select recommendations into FY 2025-27 Biennial Budget.

ENVIRONMENTAL REVIEW:

Receiving and filing the Organizational Assessment and authorizing staff to incorporate select recommendations into the FY 2025-27 Budget is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378.) Alternatively, receiving and filing the Organizational Assessment and authorizing staff to incorporate select recommendations into the FY 2025-27 Budget is exempt from CEQA on the basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

ATTACHMENTS:

1. Operational and Organizational Assessment

CITY OF
Arroyo
Grande
Operational and Organizational Assessment
Project Report / May 2025
ATTACHMENT 1

CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT

19 Garfield Place, Suite 500 Cincinnati, OH 45202
www.raftelis.com
May 2, 2025
Matthew Downing
City Manager
City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
Subject: Operational and Organizational Assessment Report Dear Mr. Downing:

Raftelis is pleased to provide you with this Operational and Organizational Assessment Report for the City of Arroyo Grande (City). This assessment sought to align organizational structure and staffing with City goals and service levels, review opportunities for operational efficiency, and evaluate options to enhance the City’s approach to economic development. With the exception of Police and Public Works operations, this report summarizes our analysis of Citywide and departmental staffing and service levels that led to recommendations on resourcing, structure, and opportunities to enhance operational effectiveness. The recommendations were informed by our work with local governments across the country, industry best practices, workload data provided by the City, and peer benchmarking analysis.

The City of Arroyo Grande is fortunate to have dedicated, talented, and experienced employees. Employees are proud of the work they do to support the community. The recommendations included in this report will enable the City to build on existing strengths, improve efficiency and effectiveness, and continue the City’s reputation for excellence.

Thank you for the opportunity to partner with the City in this important effort.

Sincerely,
Jonathan Ingram
Vice President - Organizational Assessment
P: 513.221.0500 / E: [email protected]

CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT

CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT Table of Contents
EXECUTIVE SUMMARY ........................................................................1 INTRODUCTION.....................................................................................3 BACKGROUND AND METHODOLOGY.......................................................... 3 ABOUT THE CITY OF ARROYO GRANDE..................................................... 4 Broad Areas of Focus......................................................................................................4 Structure...........................................................................................................................4 Staffing..............................................................................................................................5 Budget...............................................................................................................................6 BENCHMARKING SUMMARY......................................................................... 6 Citywide Staffing..............................................................................................................7 ANALYSIS AND RECOMMENDATIONS...............................................8 CITYWIDE........................................................................................................ 8 Structure and Staffing Recommendations ....................................................................9 Operational Efficiency Recommendations ..................................................................15 COMMUNITY DEVELOPMENT...................................................................... 16 Core Service Matrix .......................................................................................................17 Staffing Level History ....................................................................................................18 Structure and Staffing Recommendations ..................................................................18 Operational Efficiency Recommendations ..................................................................20 CITY MANAGER’S OFFICE........................................................................... 21 Core Service Matrix .......................................................................................................22 Staffing Level History ....................................................................................................22 Structure and Staffing Recommendations ..................................................................23 LEGISLATIVE AND INFORMATION SERVICES........................................... 26 Core Service Matrix .......................................................................................................26 Staffing Level History ....................................................................................................26 Structure and Staffing Recommendation Impact........................................................27 Operational Efficiency Recommendations ..................................................................27

CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT ADMINISTRATIVE SERVICES ...................................................................... 29 Core Service Matrix .......................................................................................................29 Staffing Level History ....................................................................................................30 Structure and Staffing Recommendations ..................................................................30 PUBLIC WORKS............................................................................................ 34 Core Service Matrix .......................................................................................................34 Staffing Level History ....................................................................................................35 Structure and Staffing Recommendations ..................................................................36 Operational Efficiency Recommendations ..................................................................38 RECREATION SERVICES............................................................................. 42 Core Service Matrix .......................................................................................................43 Staffing Level History ....................................................................................................43 Structure and Staffing Recommendations ..................................................................44 Operational Efficiency Recommendations ..................................................................45 CONCLUSION......................................................................................48

CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT List of Tables
Table 1: Summary of Report Recommendations.....................................................................2 Table 2: Authorized Staffing Level by Department, FY2021-FY25..........................................5 Table 3: General Fund Expenditures by Category, FY2021–FY25..........................................6 Table 4: Benchmark Communities............................................................................................6 Table 5: Benchmarking Analysis of Authorized FTEs by Function........................................7 Table 6: Peer Comparison – Deputy/Assistant City Manager Positions................................9 Table 7: Community Development Department Core Service Matrix...................................17 Table 8: Community Development Department Staffing History..........................................18 Table 9: City Manager’s Office Core Service Matrix ..............................................................22 Table 10: City Manager’s Office Staffing History...................................................................22 Table 11: Administrative Support Benchmarking Analysis ..................................................24 Table 12: Legislative and Information Services Core Service Matrix...................................26 Table 13: Legislative and Information Systems Department Staffing History ....................27 Table 14: Administrative Services Core Service Matrix ........................................................29 Table 15: Administrative Services Department Staffing History ..........................................30 Table 16: Public Works Department Core Service Matrix .....................................................34 Table 17: Public Works Department Staffing History............................................................35 Table 18: Recreation Services Department Core Service Matrix..........................................43 Table 19: Recreation Services Department Staffing History ................................................43 Table 20: Summary of Recommended Staffing Increases ....................................................48 List of Figures
Figure 1: City of Arroyo Grande Functional Organizational Chart, FY 2024-25 ....................5 Figure 2: Recommended Executive Leadership Oversight ..................................................11 Figure 3: Community Development Organizational Structure, FY2024-25 ..........................17 Figure 4: Proposed Community Development Department Organizational Structure .......20 Figure 5: City Manager’s Office Organizational Structure, FY2024-25.................................22 Figure 6: City Hall Administrative Support Positions and Functions ..................................23 Figure 7: Proposed City Manager’s Office Organizational Structure...................................25 Figure 8: Legislative and Information Services Organizational Structure, FY2024-25.......26 Figure 9: Public Records Request Volume, FY2019–FY2024 ...............................................28 Figure 10: Administrative Services Organizational Structure, FY2024-25...........................29 Figure 11: Information Technology Service Tickets by Month in 2024................................32 Figure 12: Proposed Administrative Services Department Organizational Structure ........33 Figure 13: Public Works Organizational Structure, FY2024-25.............................................34 Figure 14: Proposed Public Works Organizational Structure, Administrative and Engineering...............................................................................................................................38 Figure 15: Risk/Consequence Matrix......................................................................................40 Figure 16: Recreation Services Organizational Structure, FY2024-25.................................42

CITY OF ARROYO GRANDE OPERATIONAL AND ORGANIZATIONAL ASSESSMENT Figure 17: Proposed Recreation Services Department Organizational Structure ..............45 Figure 18: Cost Recovery Pyramid .........................................................................................46 Figure 19: Proposed Citywide Organizational Chart .............................................................49

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 1
Executive Summary
Nestled in California’s central coast region, the City of Arroyo Grande is a growing community that recognizes its agricultural roots, iconic downtown village, and history of meeting community needs through thoughtful investment and financial management. The City Council has set ambitious goals that build on the organization's strengths through continued infrastructure investment, economic development and vitality, and overall quality of life for those living and visiting the community.

Raftelis partnered with the City to conduct an operational and organizational assessment to help inform opportunities to meet City Council goals through organizational effectiveness. Dedicated City staff work diligently to meet the service level expectations of the community; however, as the community’s preferences and overall footprint continue to grow and evolve, it is important to assess whether the current structure and staffing composition best support community needs. Moreover, there may be opportunities to streamline or modernize longstanding processes through technology or improved functional alignment that enhances service delivery and optimizes staff skills and abilities.

This assessment included a review of all City departments except Police and Public Works operations. It also evaluated opportunities for revenue growth through economic development efforts. It was rooted in an appreciation for the organizational context. Within the scope of departments included in the study, Raftelis engaged nearly every staff member through interviews and focus groups. The discussion focused on their roles and responsibilities, workload drivers, service level expectations, and opportunities for improvement. This work was augmented by data and benchmarking analysis, industry best practices, and the Raftelis team’s experience working in and for local governments nationwide and in California.

It became clear during the assessment and analysis phase of the project that the workload drivers and service level expectations continue to outpace resource capacity, especially as it relates to staffing. For an organization where staffing levels have only grown modestly over the past several years (once adjusted for Recreation Services program changes), it is impressive that staff continue to deliver high-quality services to the community. This is driven by the need to flex and adapt to changing circumstances and collaborate regularly across departments and functions. The staffing and structural recommendations in the report recognize the need for strong collaboration across key functions to achieve City Council goals. Some examples include capital planning and delivery, infrastructure maintenance and program delivery, and customer service responsiveness.

Recommendations for new positions were carefully considered against the City’s financial backdrop while also identifying where full-time resources will be needed in the future and providing space for prioritization and implementation of such recommendations. Guiding principles for new positions included appreciation for whether the workload justified a full-time resource to meet current and future demand and the City’s desire to have various positions functioning at their highest and best use. Key processes were also explored as part of identifying core services across the various departments. Operational efficiency recommendations highlight opportunities to enhance staff’s productivity through modernization efforts that improve transparency, responsiveness, and workflow. Once implemented, these recommendations support more effective processes that augment technology and reduce the amount of time staff spend completing various tasks.

The following table highlights the recommendations detailed in this report. Within each department, recommendations were grouped first by structure and staffing changes, then by opportunities to enhance operational efficiency. The recommendations are not in priority order. Prioritization should be determined based on

2 CITY OF ARROYO GRANDE
implementation planning with City leadership and include factors like resource considerations, staffing level changes, and strategic goals and priorities.

Table 1: Summary of Report Recommendations
Number Recommendations
Citywide
1 Add one Assistant City Manager (1.0 FTE) to the organization. 2 Divide functional responsibilities between the City Manager and the Assistant City Manager to provide additional capacity and strategic oversight.
3 Establish a proactive Economic Development Program.
4 Create an Economic Development Coordinator to support the Economic Development Program. 5 Continue modernization efforts to streamline and reduce paper-based processes.

Community Development
6 Formalize Planning Manager supervisory responsibilities to reduce the Director’s span of control. 7 Increase the Community Development Department Office Assistant position from part-time to full-time. 8 Replace Adobe® for plan review with Bluebeam®.
9 Collect plan review fees at the time of application.

City Manager’s Office
10 Add one full-time Executive Secretary position responsible for central reception and administrative support in City Hall.
11 Increase the part-time Executive Secretary position in HR to full-time and retitle to Human Resources Specialist.

Legislative and Information Services
12 Develop a plan to automate the public records requests by leveraging existing software to the greatest extent possible.

Administrative Services
13 Add one Senior Accounting Clerk to the Finance Department. 14 Leverage the upcoming IT Master Plan to determine staffing levels.

Public Works
15 As part of succession planning, remove the Assistant City Manager responsibility from the Director position and officially designate the City Engineer as the Department Assistant Director. 16 Restructure engineering resources to align with Council infrastructure goals. 17 Develop a formalized Asset Management Program.

Recreation Services
18 Transition the Tourism Business Improvement District (TBID) responsibilities to the Economic Development Program.
19 Establish a framework to evaluate special events programming.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 3
Introduction
Background and Methodology
The City of Arroyo Grande, California, engaged Raftelis in late 2024 to perform an operational and organizational assessment of the following City departments:
• Community Development
• City Manager’s Office (CMO), including Human Resources (HR) • Legislative and Information Services
• Administrative Services - Finance and Information Technology (IT) • Public Works (Administration and Engineering)
• Recreation Services
This engagement aimed at assessing the organizational structure and staffing levels within each department to understand how they were resourced for service delivery and alignment with City Council goals. The assessment also considered options to enhance economic development in a way that contributed to the financial sustainability of the City to continue providing high-quality service delivery for the community. Police and Public Works operations were excluded from the scope of the study. Collectively, these two departments represent approximately 60% of the City’s workforce. Moreover, the Five Cities Fire Authority (FCFA) was excluded from the City staffing analysis; however, Raftelis was able to gather an understanding of how administrative management responsibilities impact workload for City staff.

The process began with a kick-off meeting with the City’s designated project team to review the details and expectations of this assessment. Next, Raftelis completed a site visit to engage with City staff. The project team met with 28 staff members from several City departments, including the CMO, Community Development, Administrative Services, Legislative and Information Services, Recreation Services, and Public Works. The employee interviews gave the project team a better understanding of how work is performed and the specific challenges and opportunities related to staff capacity, organizational structure, workload management, and work planning. Additionally, the project team reviewed and analyzed data provided by the City, including but not limited to staffing and budget histories, available planning documents, and other documentation that details the operations and service-delivery approach.

When appropriate, this information was compared to best practices guidelines from industry organizations and agencies. It was also compared to comparable cities in the Central Coast Region of California chosen based on city size, organizational structure, and demographic profiles. These peer cities include:
• City of Atascadero
• City of Grover Beach
• City of Morro Bay
• City of Pismo Beach
The interviews, data, document analysis, best practices guidance, and benchmarking analysis informed the recommendations included in this report.

4 CITY OF ARROYO GRANDE
About the City of Arroyo Grande
The City of Arroyo Grande is in California’s central coast region, approximately two miles inland from the coastline in San Luis Obispo County, sharing borders with the cities of Pismo Beach and Grover Beach and the unincorporated community of Oceano.1 Incorporated in 1911, the City has a rich agricultural history. Today, it recognizes its deep agricultural roots while supporting a variety of residential and commercial land uses. 1 According to the most recent
Census Data, the City spans 5.94 square miles and serves a population of approximately 18,412. 2 The City’s mission is to be the best place possible for everyone who lives, works, and visits. It strives to achieve this mission by providing efficient and responsive government services.3

BROAD AREAS OF FOCUS
During project initiation, Raftelis discussed with the City key areas of focus that were driving the operational and organizational assessment. The following areas were identified:
• Infrastructure and Resiliency
• Economic Development and Vitality
• Organizational Effectiveness
• Quality of Life
Moreover, as the study was beginning, City Council was also in the process of updating their goals, which include:
• Complete the General Plan Update
• Redevelop the East Grand Avenue Corridor (Halcyon Road to Elm Street) • Pursue New Revenue Sources
• Implement Road and Sidewalk Improvements
• Achieve Water Resilience
These focus areas and goals helped guide and inform the study and evaluation of organizational structure and staffing resources. Infrastructure remains the City’s top priority. With the recent passage of Measure E-24, the City will generate additional sales tax revenue to support infrastructure improvements and critical City services. Transparency and visibility of these improvements are paramount for the organization, beginning with the Pavement Management Plan. The City is also updating its General Plan. This comprehensive document includes public engagement and input that will set the strategy for future development in a way that aligns with the community’s vision for the future.

Organizational structure and resource allocation are central to the City’s ability to deliver on these goals. Historically, the City has provided high-quality services with the fewest resources possible. The evolving landscape for local government workforce, capital, and technology planning necessitates a fresh look at how the City is currently deploying resources and prioritizing how additional resources should be allocated.

STRUCTURE
The figure below reflects the Citywide organizational structure with high-level functions outlined beneath each department, office, or agency.
1 City of Arroyo Grande General Plan Update, Existing Conditions, and Trends Workbook Final Draft, February 2024. 2 2023 American Community Survey, United States Census Bureau. 3 “Departments/Divisions,” City of Arroyo Grande website.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 5
City Manager

2.0 FTE
Legislative & Info
Services

2.6 FTE
Public Works

30.8 FTE
• Council Administration
• Public Records Requests
• Records Management
• Communications
• Event Management Support
• Streets
• Utilities
• Engineering and Capital
• Park Maintenance
• City Facilities Maintenance
• Fleet
• Policy Administration
• City Management
• Strategic Oversight
Administrative
Services

7.0 FTE
• Accounts Receivable
• Accounts Payable
• Payroll
• Utility Billing
• Financial Reporting and
Budget Development
• Network Security
• Application and
Customer Support
Human Resources

1.5 FTE
• Recruitment
• Personnel
Management
• Employee
Relations
• Labor Relations
• Compliance
Community
Development

7.5 FTE
• Building
• Planning
• Code Enforcement
• Housing Grants
Management
Police

31.5 FTE
• Patrol
• Investigations
• Neighborhood Services
• School Resource Officer
• Records / Property and
Evidence
Recreation
Services

5.9 FTE
• Special Events
• Recreation programming
• Tourism Business
Improvement District
Five Cities Fire
Authority

29.5 FTE
• Joint Powers Authority with
Grover Beach
• Personnel and Financial
Services provided by City of
Arroyo Grande
City Attorney
(Contracted)

1.0 FTE
• Legal Counsel
• Contract Review
Figure 1: City of Arroyo Grande Functional Organizational Chart, FY 2024-25

STAFFING
According to the FY2024-25 Budget, the City of Arroyo Grande's authorized staffing is 93.8 full-time equivalent (FTE) employees. During the FY2024-25 mid-cycle update budget adoption in June 2024, some additional staff have been added, including a part-time (0.5 FTE) Executive Secretary for HR and a part-time (0.5 FTE) Recreation Specialist. The total budgeted staffing has decreased by 8.7% since FY2020-21. This staffing decrease can be primarily attributed to the transition of the Recreation Preschool and Children in Motion programs in the Recreation Department in FY2023-24 to the YMCA. The remaining department staffing changes have resulted from interdepartmental transfers, including IT transferring from Legislative and Information Services to Administrative Services and Engineering transferring from Community Development to Public Works. The City has also modified a few strategic positions over the past five years, including adding a Management Analyst, Assistant Capital Projects Manager, and reclassifying a position to fill the Planning Manager position.

Table 2: Authorized Staffing Level by Department, FY2021-FY25 Department FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget
%
Change
Elected Officials 5.0 5.0 5.0 5.0 5.0 0.0%
City Manager’s Office4 2.0 3.0 4.0 4.0 4.0 100.0%
Legislative and Information Services Department 4.6 2.6 2.6 2.6 2.6 -43.5% Administrative Services Department 6.0 7.0 7.0 7.0 7.0 16.7% Community Development Department 10.5 11.5 10.5 7.5 7.5 -28.6% Police Department 33.4 33.4 31.5 30.5 31.5 -5.7%
Recreation Services Department 15.0 15.0 15.0 5.4 5.4 -64.0% Public Works Department 25.5 25.5 27.8 30.8 30.8 20.8%
Total 102.0 103.0 103.4 92.8 93.8 -8.0%
4 The City Manager’s Office includes the contracted City Attorney.

6 CITY OF ARROYO GRANDE
In addition to these staff, the Five Cities Fire Authority serves the City through a Joint Powers Agreement and has a total of 31.0 FTEs.

BUDGET
The City’s general fund budget supports most core services provided by City departments. The past five years of the operating budget reflect the impact of the global pandemic followed by a period of growing inflationary pressure, including wage growth. These factors contributed to an average annual expenditure growth of 8.1% that was required to simply maintain the status quo. Large expenditure drivers include the City’s pension benefit contribution cost, increasing salaries to maintain competitive wages in the labor market, and support for technology equipment and capital investments. The following table shows the general fund budgets by category from FY2020-21 to FY2024-25.

Table 3: General Fund Expenditures by Category, FY2021–FY25 Department FY20-21
Actual
FY21-22
Actual
FY22-23
Actual
FY23-24
Budget
FY24-25
Budget
Salaries and Fringe Benefits $11,353,567 $10,850,612 $13,197,956 $12,089,400 $12,437,200 Services and Supplies $6,869,822 $6,454,835 $7,315,351 $9,434,771 $9,774,816 Debt Service $54,500 $128,493 $307,933 $309,566 $294,386 Transfers $38,450 $1,398,707 $656,288 $115,000 $2,475,000 Capital Outlay $457,504 $12,998 $241,459 $239,500 $149,500 Total $18,773,843 $18,845,645 $21,718,987 $22,188,237 $25,130,902 Benchmarking Summary
Benchmarking refers to collecting information from various sources and comparing this information to the local operation to provide context for how other organizations operate and provide services to a community. To help inform the recommendations in this report, the project team conducted peer benchmarking regarding operations from four peer communities in the Central Coast Region of California, which were identified based on conversations with City staff, city size, organizational structure, and demographic profiles.

While the benchmarking information provides a valuable comparison between how other cities are staffed and operated compared to the City, it is important to acknowledge that each city has different attributes and faces different challenges despite working in a similar operating environment. Furthermore, the limited availability of information did not allow the project team to do a full, in-depth analysis of each peer community’s operations to understand the intricacies of how each approaches the challenges currently faced by the City.

The following table shows the benchmark communities and their respective populations, the percentage change in population since 2010, and each city’s total land area in square miles.

Table 4: Benchmark Communities
City Population5
(2023)
Population Change
Since 2010
Land Area
(Square Miles)
City of Arroyo Grande 18,412 6.7% 5.94
City of Atascadero 29,735 5.0% 26.07
City of Grover Beach 12,687 -3.6% 2.31
5 United States Census Bureau.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 7
City Population5
(2023)
Population Change
Since 2010
Land Area
(Square Miles)
City of Morro Bay 10,717 4.7% 5.33
City of Pismo Beach 8,024 4.8% 3.50

CITYWIDE STAFFING
To provide a baseline understanding of staffing by department, Raftelis compared total authorized staffing within each department scoped for this study with the benchmark communities. The table below summarizes the staffing analysis, which was considered alongside City workload data analysis, interview themes, and best practices guidance for determining staffing recommendations. Each peer community has similar core functions, though they may be distributed across different departments. All information was sourced from the peer agency’s most recently adopted budget document. The project team made functional distribution assumptions based on industry knowledge of local government workforce composition and service provisions. The analysis is meant to provide a data point to guide recommendations and may not reflect actual practice within each of these communities. Where appropriate, noteworthy differences are footnoted.

Table 5: Benchmarking Analysis of Authorized FTEs by Function Function Arroyo
Grande
Peer
Average Atascadero Grover Beach Morro Bay Pismo Beach
City Manager's Office
(CMO) 2.00 2.10 3.00 2.00 1.20 2.20
Human Resources (HR) 1.50 1.25 1.00 1.00 2.00 1.00
City Clerk’s Office6 2.60 1.83 0.507 2.00 3.00 1.80
Finance 5.00 7.23 7.00 6.00 7.90 8.00
Information Technology 2.00 2.63 4.50 2.00 2.00 2.00
Community Development 9.508 8.96 12.00 5.25 9.60 9.00
Recreation 5.90
9 3.98 3.90 3.00 6.00 3.00
Total 28.50 27.96 31.90 21.25 31.70 27.00
Typically, internal service functions include the CMO, HR, City Clerk’s Office (called Legislative and Information Services for the City), Finance, and IT. Operations functions typically include Community Development, Recreation, and Public Works. Across the peer communities, the departments in which these functions are housed vary; however, Arroyo Grande is the only City to have a separate Legislative and Information Services Department and Director. Among the other cities, this function is usually part of the CMO. Similarly, among benchmarking communities, special events and communications functions were also common within the CMO, whereas for the City special events is part of Recreation Services and communications is primarily supported within Legislative and Information Services.
6 Includes communications function
7 City Clerk responsibilities are assigned to the Deputy City Manager (CMO) 8 Includes two contracted positions for Chief Building Official and Building Inspector. 9 Includes special events

8 CITY OF ARROYO GRANDE
Analysis and
Recommendations
As the project team grew to understand the City’s organizational context, the staff’s dedication to the community was clear. The City is familiar with operating in a resource-constrained environment, and as a result, staff work collaboratively to achieve success, often spilling across multiple functional areas. The recently hired City Manager, with previous experience working for the City, has brought a sense of stability to the organization. Previously, there were several years of leadership transition, in addition to a global pandemic, which led to hesitancy and ambiguity among staff.

The City has already made key decisions that will position it well to deliver on Council goals. The recent modification for an Assistant Capital Projects Manager and Planning Manager improves resource support for infrastructure and economic development goals. Similarly, the City’s implementation of Tyler Munis Enterprise Resource Planning (ERP) modernizes the core financial components of operations while providing a robust platform to integrate future technology upgrades.

When developing recommendations, the project team first considered organizational structure, both Citywide and by department. The desired outcome of this analysis was to present recommendations that best align service delivery, policy goals, and adequate capacity to manage day-to-day operations and strategic priorities. As part of the structural analysis, the project team assessed workload demand and the department’s ability to continue meeting service level expectations. The recommendations for additional staff were informed by interviews, best practices, benchmarking guidance, and, where available, workload data. Each potential staffing recommendation was considered by Raftelis within the City’s financial context. The recommendations presented reflect where the City will need future resources and capacity. City leadership should guide the phasing and prioritization of these recommendations, appreciating the need to align additional resources with ongoing revenue growth that will support the investment over time.

The recommendations below begin Citywide and then by department, ordered by those departments prioritized in the request for proposal (RFP). Within each department, are two sections; the first provides recommendations related to structure and staffing, followed by recommendations to improve operational efficiency.

Citywide
The recommendations in this section affect multiple facets of City operations, including opportunities to enhance executive staffing to reduce the City Manager’s span of control and create synergy and alignment between core functions and strategic priorities. This section also discusses recommendations for a formal Economic Development Program to support future revenue growth through commercial development and enhance the City’s overall tax base.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 9

STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 1: Add one Assistant City Manager (1.0 FTE) to the organization.

The City Council’s goals chart a long-term plan for the City's economic vitality. Achieving these goals requires the capacity to develop and execute strategic priorities for the organization. The City Manager leads this effort, appreciating that long-term strategy begins with revenue-generating opportunities that provide ongoing support for meeting the service level expectations of the community. As such, the role of the City Manager includes overseeing day-to-day operations and building external relationships with community partners, intergovernmental agencies, and the City Council to advance the long-term vision for the City.

The City’s organizational structure currently relies on the City Manager performing oversight responsibilities within the Office of the City Manager for each department head and contracted or supporting agencies (e.g., City Attorney, FCFA). The result of this large span of control inevitably leads to the City Manager being heavily involved in dayto-day operations and the management of all City departments, leaving limited time available for community engagement and pursuing strategic City priorities. In practice, the short-term demands of day-to-day operations and service delivery crowd out space for long-term goals. This capacity for long-term goals allows space to develop economic growth opportunities that will ultimately grow revenues and help sustain service delivery well into the future. The recent sales tax measure is a great example of how essential revenue growth is to simply maintain the same level of service currently provided to the community.

A separate and distinct, full-time Assistant City Manager is recommended. This kind of personnel investment is significant given the City’s financial context and overall size; however, as shown in the table below, it is common among other benchmarking communities. This additional executive-level position allows leadership to be more responsive to the day-to-day needs of the organization as well as the Council's and community's long-term goals.

Table 6: Peer Comparison – Deputy/Assistant City Manager Positions Municipality Population
(2023)
FY25 General
Fund Assistant/Deputy City Manager FTEs
Arroyo Grande10 18,412 $26,369,634 1.0 Assistant City Manager / Public Works Director Atascadero 29,735 $36,609,560 2.0 Deputy City Managers
Grover Beach 12,687 $18,480,020 1.0 Assistant City Manager Morro Bay11 10,717 $20,584,958 None
Pismo Beach12 8,024 $31,029,411 1.0 Assistant City Manager / Management Services Director Responsibility for department oversight should be split between the City Manager and Assistant City Manager. This structure allows the CMO to be more responsive and connected to the work of their portfolio of departments and how that work aligns with Council goals and resource prioritization. In addition, the two positions also increase the capacity for strategic focus areas, including economic development, public outreach and communication, and 10 The City’s Assistant City Manager does not have formal supervisory responsibilities for other department heads, only in their capacity as Director of Public Works.
11 In FY2025 an Assistant to the City Manager position was added, because the position does not have supervisory responsibility it was excluded from the table.
12 The Management Services Department includes HR, Risk Management, Public Outreach, Legislative Affairs, and Public Information functions. The Assistant City Manager has supervisory responsibilities for each of these functions (4.0 FTEs).

10 CITY OF ARROYO GRANDE
building effective relationships with community partners. This also allows for a consistent and continuous leadership structure when the City Manager is out of the office and unavailable.

The total estimated cost for this position, including benefits, is $262,600 per year based upon the need to add a Director level position to separate the current Assistant City Manager position from Department Director.

Recommendation 2: Divide functional responsibilities between the City Manager and the Assistant City Manager to provide additional capacity and strategic oversight.

The City has a longstanding history of delivering high-quality services to residents. As the Council and City leadership plan for the future, they are focused on economic development and infrastructure goals that will continue to support the City’s vitality and resilience. To deliver on the Council’s goals, executive leadership will need adequate capacity to build strong relationships with the business community and plan for strategic infrastructure investments that support community development goals. Under the current organizational structure, the City Manager’s large span of control lends itself to focus more on day-to-day operational needs. While individual department directors are focused on overseeing quality service delivery, they also need support from the City Manager, including communication, understanding of resourcing and planning, and ensuring that the organization is focused on delivering on Council policy priorities.

While the shared Assistant City Manager and Public Works Director provide additional support for communication between Council and City leadership, the formal supervisory responsibilities still rest with the City Manager. As recommended above, creating an Assistant City Manager position separate from the Public Works Director will allow the City administration to functionally restructure in a way that supports better service delivery expectations and creates capacity for advancing the Council’s goals. With an Assistant City Manager, supervisory responsibility can be shared and grouped based on functional alignment. Oversight responsibilities can also complement the executive leadership team's professional experience and skill set. The figure below shows the recommended Citywide restructuring with the addition of an Assistant City Manager position.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 11
City Manager
Legislative and
Info Services
Director
Public Works
Director
Administrative
Services Director
Assistant City
Manager

1.0 FTE
Community
Development
Director
Police
Chief
Recreation
Services
Director
Five Cities Fire
Authority
City Attorney
(Contracted)

1.0 FTE
Human
Resources
Officer
Internal Services Operations Public Safety
Figure 2: Recommended Executive Leadership Oversight
As recommended, City departments would be grouped into three primary portfolios: Public Safety, Operations, and Internal Services. The City Manager would maintain oversight responsibility for Police and FCFA, with the remaining two portfolios split between the City Manager and Assistant City Manager. Portfolio assignments are flexible and should be determined after the Assistant City Manager position is filled to provide an opportunity to assess strengths and professional expertise. This recommended structure reduces the City Manager’s span of control from nine direct reports (including FCFA) to seven, including the new Assistant City Manager. The Operations portfolio represents front-facing departments like Community Development, Public Works, and Recreation Services.

In addition, the economic development program would fall within this portfolio given the collaborative approach required among these departments for future development strategy, evaluation, and execution. The Internal Services portfolio would comprise the various support functions required to administer efficient and effective service delivery, including HR, Legislative and Information Services, and Administrative Services. Collectively, these functions represent the backbone of City operations, often with overlapping coordination responsibilities. They help engage and answer residents’ inquiries while providing internal customer service to front-facing departments through effective systems, policies, and procedures.

With shared supervisory responsibility and functional alignment, day-to-day oversight should be streamlined, providing increased capacity for strategic initiatives. Oversight responsibility within the Internal Services portfolio should encompass strategic communication and process improvement efforts. Although staff in the Legislative and Information Services department support public outreach and engagement, there is no coordinated policy or strategic approach. Leadership within the CMO should provide guidance and direction to all departments regarding how communication is delivered to the community. Moreover, the operational efficiency recommendations within this report highlight opportunities for the City to continue modernization efforts that leverage technology and electronic

12 CITY OF ARROYO GRANDE
workflow. Leadership and staff within the CMO should prioritize, plan, and champion these efforts over time, connecting the impacted departments and overall City goals. Finally, as mentioned previously, developing an economic development strategy and program should be a strategic focus for the executive position overseeing the Operations portfolio. The following recommendation details how the City can build a proactive economic development program.

Recommendation 3: Establish a proactive Economic Development Program.

The City Council of Arroyo Grande has prioritized economic development to enhance revenue and meet the increasing demand for City services. This commitment was formalized in the 2012 Economic Development Element of the City’s General Plan, which outlines four key goals for guiding economic development initiatives. These goals serve as a framework for establishing priorities, assessing the economic impact of land use decisions, and measuring progress in policy implementation. The goals are to:

1. Create a thriving economy

2. Meet unmet community needs

3. Promote business activity

4. Provide superior customer service
The City recognizes that the 2012 Economic Development Element is outdated and plans to integrate an updated market study as part of the General Plan update. Within the organization, economic development efforts are decentralized and primarily reactive. Related activities are limited to work within the Community Development Department, focused on private development projects, and the responsibilities carried out by the Recreation Services Department in support of the City’s Tourism Business Improvement District (TBID). Under this approach, economic development activities are performed in response to emerging opportunities or challenges. As part of the General Plan update and associated refresh of economic development goals and strategies, it will be important to transition to a proactive approach. Arroyo Grande’s decentralized approach to economic development is not unique; among the peer agencies reviewed by the project team, only Atascadero has dedicated Department of Economic and Business Development with a Deputy Economic and Community Development Director position responsible for economic development activities.

A proactive approach to economic development involves a multifaceted strategy tailored to the City of Arroyo Grande’s unique characteristics and challenges. Key components include:

1. Strong leadership: Strong leadership from the City Council, City management, staff, economic development agencies, and key business leaders is needed to guide the implementation of initiatives and ensure accountability.

2. Strategic planning: Economic development strategic plans should set clear and actionable objectives, have timelines, assign implementation responsibilities, and include measurable outcomes to track success against.

3. Resource planning: A sustainable funding plan is needed to fund economic development projects and acquire properties. This plan should include general fund support, public-private partnerships, and grant funding.

4. A business retention and expansion program (BRE): Assisting current businesses within a community to succeed and expand ensures a vibrant, healthy business ecosystem by preserving and increasing local jobs and tax revenues. Therefore, a BRE program is critical to a proactive economic development strategy. It

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 13
involves creating relationships with existing businesses to identify challenges and growth opportunities and providing assistance where possible. This assistance can include13:
o Identifying available properties for future operations o Securing financing for new equipment or operations
o Identifying workforce development opportunities
o Assisting with permitting, licensing, or infrastructure needs o Technical assistance for growth opportunities or challenges

5. A comprehensive catalog of marketing collateral: Maintaining an extensive catalog of marketing materials that effectively communicate to prospective businesses the community's benefits, available properties, incentives, market and demographic data, and more.

6. Interdepartmental coordination: Economic development projects often require extensive coordination between multiple departments within a city, including Administrative Services, Public Works, Community Development, and more.

7. Engagement with external stakeholder groups: Establishing strong relationships with local, regional, and state stakeholder groups, such as educational institutions, economic development organizations, non-profit organizations, and others, will identify available resources and support local economic development efforts.

8. Market accessibility: Improving market accessibly through infrastructure improvements and other means will help remove barriers to entry that may otherwise keep a business from being in the community.

9. Data-driven decision-making: A proactive economic development strategy must be informed by data related to economic indicators, business trends, employment statistics, demographics, and other relevant factors. This information will inform decision-making and help tailor strategies to economic shifts.

10. Leveraging City-owned assets through public-private partnerships: Positioning City-owned assets, like land or buildings, to attract private investment, create jobs, and support community goals through business partnerships.

Many of these elements are already included in the 2012 Economic Development Element. For example, it outlines various best practices strategies to enhance economic growth, including, but not limited to14:
• Maintaining a comprehensive marketing strategy to promote the City of Arroyo Grande as a businessfriendly community • Encouraging adequate infrastructure to support business expansion, redevelopment, and new development • Performing outreach to the development community, real estate brokers, and other stakeholder groups to identify opportunities
• Monitoring business trends
• Supporting a Citywide database of available real estate With this foundation in place, the City is well-positioned to translate these strategies into actionable tasks and develop related trackable metrics that could be incorporated into a proactive economic development strategy.

Recommendation 4: Create an Economic Development Coordinator to support the Economic Development Program.

The success of a proactive Economic Development Program depends on the City’s commitment to implementing it with focused dedication and consistency. The City’s decentralized approach to economic development has restricted its ability to achieve the goals and strategies outlined in the 2012 Economic Development Element. This experience 13 “Why a Business Retention and Expansion Program Matters,” International Economic Development Council. 14 “Economic Development Element of the City of Arroyo Grande General Plan,” October 9th, 2012.

14 CITY OF ARROYO GRANDE
clearly demonstrates that, without dedicated resources, even the best-designed strategy is unlikely to be effective. To transition from planning to action, the City must invest in staff who can lead, coordinate, and advocate for this initiative.

Identifying a staff member to lead economic development activities provides focused leadership and accountability for implementing the City’s strategic goals. An economic development staff member can serve as a central point of contact for businesses, developers, and community partners, ensuring consistent communication and responsive service. This role helps translate long-term plans into actionable initiatives, tracks progress and fosters crossdepartmental coordination to streamline processes that impact business growth. Additionally, dedicated staff can proactively pursue funding opportunities, maintain relevant economic data, and strengthen partnerships with workforce development and education providers. By investing in this capacity, the City can more effectively support local businesses, attract new investment, and promote sustainable, inclusive economic growth.

To establish dedicated economic development staffing, the City should transfer the part-time Special Events Specialist position from the Recreation Services Department to the CMO and reclassify it as a full-time Economic Development Coordinator. This role already entails significant responsibilities related to economic development, particularly in supporting the TBID program. The TBID funds projects, programs, and activities that enhance the local lodging industry and strengthen the City’s tourism economy. As part of this function, the City collects a 2% assessment from lodging businesses within its jurisdiction, which is utilized to promote the lodging industry.

In addition to supporting the TBID, the Economic Development Coordinator should have a broader scope of responsibilities, including:
• Overseeing the execution of a comprehensive economic development strategy (as recommended in this report and developed as part of the General Plan update phase 10: Economic Development Studies) • Building and maintaining relationships with local businesses and external stakeholder groups • Initiating a comprehensive Business Retention and Expansion program • Establishing detailed metrics and benchmarks to evaluate the effectiveness of economic development initiatives
• Conducting research and advising the City’s leadership on emerging trends and relevant topics • Coordinating and managing economic development consultants' contracts during the implementation of strategies
Overall, the Economic Development Coordinator role would provide a resource to collaborate with the business community, foster relationships, and proactively seek opportunities to attract and grow businesses in the City.

Placing this position in the CMO would enhance focus and coordination among different departments, particularly Public Works and Community Development, on projects and activities that maximize economic development opportunities.

This position should be a part of the Management Group due to the need for confidentiality and align with the operations portfolio of departments, reporting directly to Assistant City Manager responsible for overseeing that portfolio. Assigning executive supervisory responsibilities ensures that this position receives dedicated attention, mentorship, and supervision, fostering collaboration with other City departments and reinforcing accountability. In addition, executive leadership should continue to provide strategic oversight and coordination for all economic development activities. Formalizing the economic development function within the CMO enables the City to respond swiftly to challenges and opportunities while ensuring that activities align with the City's comprehensive

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 15
and strategic planning efforts. It also provides an opportunity to measure the success of economic development efforts and clearly understand any future resource needs the City may have to achieve its goals.

To relocate and reclassify the Special Events Specialist position, the City Manager should work with the Recreation Services Director, HR staff, and Administrative Services staff to identify any necessary adjustments to the compensation structure associated with changing the role from part-time to full-time, develop a job description for the Economic Development Coordinator role, and seek any required approvals from City Council. As part of determining classification, it will be important to consider the executive reporting structure and confidential nature of information this position will have access to. The estimated change in compensation to reclassify the Special Event Specialist as a full-time Economic Development Coordinator is approximately $110,000, inclusive of benefits. This estimate considers the City’s existing compensation structure and addition of full-time benefits. However, City Management and HR staff should determine the actual compensation package based on the experience and qualifications of the person identified to fill the position.

A comprehensive training program related to economic development initiatives should also be developed. The City should consider having the position pursue an economic development-related certification, such as Certified Economic Developer (CEcD) from the International Economic Development Council (IEDC) or Economic Development Finance Certification offered by Grow America. These certification programs vary in requirements and price. Class prices for IEDC’s CEcD program were not readily available. The Economic Development Finance Certification, offered by Grow America, costs approximately $7,400.

OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 5: Continue modernization efforts to streamline and reduce paperbased processes.

Technology enhances operational efficiency, streamlines workflows, and enables data-driven decision-making within local government operations. Adopting and implementing various software systems and technology can reduce administrative burdens, improve service delivery, and provide valuable insights for long-term planning.

The City has already adopted systems that have helped modernize operations. For example, the Community Development Department utilizes Citizenserve®, a cloud-based software suite providing solutions for permitting, code enforcement, licensing, planning, land management, request tracking, and more. Additionally, Laserfiche® is used to manage documents and records. Finally, the City is implementing Munis®, an enterprise resource planning software that allows for centralized management of core functions, including finances, procurement, HR, payroll, revenue tracking, and utility billing.

As part of each department’s operational review, Raftelis identified additional opportunities for continued modernization. In an organization that relies on staff who cover multiple functions and areas of responsibility, investments in technology will help balance growing workload demand with limited financial resources. This is particularly true for administrative support functions. The City’s reliance on paper-based processes, filing, and records management increases staff workload that could otherwise support direct service provision. It also provides the ability to create a regular ongoing reporting structure that would assist in management and supervision. A summary of technology and system modernization that will help streamline and improve operations for various City departments includes:

Utility Billing and Payroll System: As the City continues its implementation of Munis, upgrading the utility billing and payroll system will improve accuracy, enhance reporting capabilities, and reduce redundancies by automating

16 CITY OF ARROYO GRANDE
routine processes. The City was already preparing the Munis payroll implementation at the time of project interviews and planned to subsequently start the utility billing implementation. These transitions will also allow for better tracking of expenditure and revenue, supporting sound data-driven financial decision-making.

Computerized Maintenance Management System (CMMS): A CMMS is a software solution that enhances a City’s ability to plan, monitor, and track maintenance tasks and the condition of infrastructure assets. Implementing a CMMS will modernize the City’s approach to asset management by providing real-time data on maintenance needs, asset lifecycles, and work history. It will enable the City to produce work orders for reactive and preventative maintenance tasks and improve operational efficiency by reducing unplanned downtime, optimizing preventive maintenance schedules, and extending the life of critical infrastructure assets. A CMMS will also support budget planning by providing insights into long-term maintenance costs.

Public Records Request Management System: The City's current use of Laserfiche has improved records management and retrieval, demonstrating a strong commitment to transparency and compliance. Building on this success, an electronic records request process will enhance efficiency by automating workflows for public records requests and managing compliance with legal requirements. This will reduce manual effort, ensure timely responses, and minimize non-compliance risk.

Advanced Metering Infrastructure (AMI) for Utilities: AMI technology provides real-time water and electric usage monitoring, reducing meter reading costs and enabling proactive maintenance. With remote data collection, utility providers can detect leaks, identify usage trends, and improve customer service by offering detailed consumption data. AMI also facilitates demand forecasting, supports conservation efforts, and enhances revenue accuracy.

By integrating these systems, the City can achieve:
• Increased efficiency through automation and streamlined workflows • Improved service delivery via real-time data and enhanced coordination • Enhanced financial management with accurate billing, payroll, and maintenance tracking • Stronger compliance and transparency with automated records management • Better resource allocation through predictive analytics and preventive maintenance Acquiring new software programs and technology will increase the City's operational costs, so purchases should be spread over time. A phased implementation plan should be developed to ensure a smooth transition from manual to electronic processes. Additionally, leveraging grant funding and cost-sharing opportunities should be explored to mitigate financial impacts. As systems and software are purchased and implemented, it will also be essential to ensure staff are trained to utilize each program properly to maximize its effectiveness. Finally, the City must ensure access to these programs by supplying enough equipment (computers, tablets, etc.) to utilize the systems.

The City’s capital improvement plan includes anticipated investment in many of these systems, including utility billing and payroll system Munis® upgrade, Public Records Request management system, and AMI for utilities. By continuing to invest in these technological advancements, the City will strengthen its ability to serve the community while optimizing internal operations.

Community Development
The Community Development Department provides services that support the development of the built environment, including both built and open spaces. According to the City’s FY2023-25 Biennial Budget, the department is committed to fostering a diverse, equitable, and thriving community while preserving the City's unique character and

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 17
environment. By balancing economic opportunities with responsible land-use planning and development, the department ensures sustainable growth and an enhanced quality of life for all residents.15 The department’s budgeted staffing complement is 7.5 FTEs, split across three divisions: Planning, Building and Life Safety, and Community Services. The department’s organizational structure is shown below:

Community
Development
Director

1.0 FTE
Chief Building
Official
CSG Contract
Building Permit
Technician
(REMOTE)

1.0 FTE
Planning Manager

1.0 FTE
Associate Planner

1.0 FTE
Assistant Planner

1.0 FTE
Office Assistant I
(Scanning)

0.5 FTE
Permit Technician

1.0 FTE
Planning
Building and Life Safety
Community
Services Specialist

1.0 FTE
Community Services
Building Inspector
CSG Contract
Intern
(VACANT)

0.5 FTE
Figure 3: Community Development Organizational Structure, FY2024-25

CORE SERVICE MATRIX
The table below provides an overview of the department’s core services, but it is not meant to be all-inclusive.

Table 7: Community Development Department Core Service Matrix Division/Program Area Activities and Service Levels
Planning
• Assist with future growth and development planning
• Review of current development proposals
• Administer the City’s Development Code
• Address planning issues related to transportation, housing, community facilities, economic growth, public safety, open space, urban design, and land use
Building and Life Safety
• Review project plans for code compliance
• Issue building permits
• Conduct inspections related to state and local building, fire, mechanical, electrical, plumbing, energy, and disabled access codes • Enforce the International Property Maintenance Code
• Conduct hazardous material and water system analysis
• Collaborate with the Five Cities Fire Authority on annual fire inspections, wildland-urban interface regulations, and fire prevention activities Community Services
• Provide information and educate the public on City regulations and programs • Administer the City’s code compliance program
• Perform field inspections and respond to citizen complaints related to public nuisances and quality of life issues
15 City of Arroyo Grande, FY2023-25 Biennial Budget.

18 CITY OF ARROYO GRANDE
Division/Program Area Activities and Service Levels
• Support education, enforcement, and inspection activities for CalRecycle Organics Regulations compliance

STAFFING LEVEL HISTORY
Overall, department staffing has been reduced by 28.6% since FY2021. This change was primarily due to the shift of engineering staff from the Community Development Department to the Public Works Department during the FY2023-24 budget cycle and contracting out for two of the three positions in the Building and Life Safety Division.

Authorized staffing, including contracted building staff of 9.5 FTEs, is consistent with the peer benchmarking community average of 9.0 FTEs. The full department staffing history is detailed in the following table.

Table 8: Community Development Department Staffing History Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget
% Change
FY20-FY25
Director 1.0 1.0 1.0 1.0 1.0 0.0%
Planning Manager 0.0 0.0 1.0 1.0 1.0 100.0%
Associate Planner 1.0 1.0 1.0 1.0 1.0 0.0%
Assistant Planner 1.0 1.0 1.0 1.0 1.0 0.0%
Community Services
Specialist 0.0 0.0 1.0 1.0 1.0 100.0%
City Engineer 1.0 1.0 1.0 0.0 0.0 -100.0%
Associate Engineer 0.0 1.0 1.0 0.0 0.0 0.0%
Assistant Engineer 1.0 1.0 0.0 0.0 0.0 -100.0%
Permit Technician 1.0 1.0 1.0 1.0 1.0 0.0%
Program Analyst 1.0 1.0 0.0 0.0 0.0 -100.0%
Engineering Inspector 1.0 1.0 1.0 0.0 0.0 -100.0%
Building Official 1.0 1.0 0.0 0.0 0.0 -100.0%
Building Permit Technician 1.0 1.0 1.0 1.0 1.0 0.0%
Office Assistant I 0.0 0.0 0.5 0.5 0.5 100.0%
Community Development
Intern 0.5 0.5 0.0 0.0 0.0 -100.0%
Total 10.5 11.5 10.5 7.5 7.5 -28.6%

STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 6: Formalize Planning Manager supervisory responsibilities to reduce the Director’s span of control.

Under the current organizational structure, the Director of Community Development supervises all department staff and oversees the contractual positions provided by CSG Consultants. As part of the FY2022-23 Budget, a Planning Manager position was added to the department. This job classification includes supervisory responsibility; however, staff in the Planning Division do not report directly to the Planning Manager.

A large span of control at the Director level limits the time available to provide strategic direction for the department, and for engagement and outreach with executive leadership and the community. According to the department’s selfreported workload report, used as an internal planning tool, around 10% of the Director’s time is spent on personnel

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 19
issues each month. The Community Development Department is integral in advancing Council goals, especially related to economic development and vitality. Moreover, the General Plan update that is currently underway is a large-scale strategic project within this department. The project requires extensive communication and engagement with the community and project consultants to help shape the future vision for community development in the City.

To allow the Director to serve a more elevated role in the various strategic priorities of the City, it is a best practice to reduce the span of control and assign supervisory responsibility to the Planning Manager for the day-to-day operations of the Planning Division. The Assistant Planner, Associate Planner, and Permit Technician should all report directly to the Planning Manager. In many local government community development departments, operational supervision is assigned to a Planning Manager, a Building Official, and, at times, a Code Enforcement Officer who reports to the Director. These positions provide daily oversight and accountability for the performance of the functional areas. Formalizing the Planning Manager’s oversight of the Planning Division staff creates structural alignment within the department, resulting in one direct report to the Director for each core function.

The City primarily outsources building and life safety services. Staff describe a good working relationship with the consultant that continues to support effective service delivery. Given the unique nature of this arrangement, it is important that the Director has adequate bandwidth for in-house contract management to ensure that the consultants adhere to performance standards in the contracts. Ongoing assessment of this contract and consideration for outsourced or in-house support is imperative to maintain service delivery expectations with the community and effective monitoring of the department’s operating budget resources.

Recommendation 7: Increase the Community Development Department Office Assistant position from part-time to full-time.

A key theme arising from interviews with staff in the department was the lack of available administrative support.

The Community Development functions consist of multiple administrative tasks, including but not limited to writing and preparing reports for City Council meetings, compiling Planning Commission packets, providing commission meeting notices, and running commission meetings, and documenting the City’s land use changes and requirements.

At present, the department has no administrative support for staff and a half-time (0.5 FTE) Office Assistant responsible for scanning paper documents. The City’s planners noted that they perform their own administrative work without support. While feasible, this is an inefficient use of planning staff capacity that could be applied toward processing more projects, leaving the creation and formatting of reports and agendas to administrative staff.

As part of the community benchmarking analysis, Raftelis reviewed administrative support within Community Development departments. Across the peer group, all cities had at least a full-time equivalent administrative position, except for Grover Beach, with a part-time 0.25 FTE. No community had more than two dedicated administrative support staff. The City’s current 0.5 FTE falls below the peer average. In addition, the focus on scanning and filing for this position highlights the continued modernization opportunities for electronic workflow and document management. The ability to implement digitization efforts will lead to enhanced capacity for conducting administrative tasks.

The department’s administrative support should be increased to a full-time equivalent to provide staff administrative task support. This additional support will allow staff greater capacity for improved customer service and processing.

The position will support all department functions, including preparation and execution of Planning Commission meetings, and as such should report directly to the Community Development Director.

20 CITY OF ARROYO GRANDE
The total estimated cost to increase this position to full-time, including benefits, is $43,400 per year based upon the current salary schedule. The figure below shows the proposed new organizational structure for the Community Development Department.

Community
Development
Director

1.0 FTE
Chief Building
Official
CSG Contract
Building Permit
Technician

1.0 FTE
Planning Manager

1.0 FTE
Associate Planner

1.0 FTE
Assistant Planner

1.0 FTE
Permit Technician

1.0 FTE
Planning
Community
Services Specialist

1.0 FTE
Community Services
Building Inspector
CSG Contract
Office Assistant

1.0 FTE
Building and Life Safety
Figure 4: Proposed Community Development Department Organizational Structure

OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 8: Replace Adobe® for plan review with Bluebeam®.

The City of Arroyo Grande contracts with an outside firm to provide building services, such as planning review and permitting. Internal staff uses Adobe for reviewing electronic plan submittals, which is not purpose-built for this process, while the contracting firm uses Bluebeam, a software common in the community development industry for electronic plan review. Because of the difference in software used, internal staff must convert their plan review documents from Adobe in order for the contractors to read them in Bluebeam. This results in redundant work and time that could be spent on other tasks.

Further, staff reported that Adobe struggles with their typically large plan review files and that the application can be unstable, impacting the time needed for a review. Using Adobe for plan review, as opposed to a tailored software option also limits staff because comments or requested changes cannot be linked to the relevant portion of the associated plan. Some staff shared that this limitation has occasionally contributed to confusion for the applicant.

Features in Bluebeam would streamline and clarify feedback provision to applicants and improve the customer’s experience.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 21
For these reasons, it is recommended that the City fund Bluebeam for the Community Development Department replace Adobe for a plan review. Licensing will require budget expenditures ranging from $260 to $330 per user, totaling around $1,300 to 1,980 annually16. This technology-led process improvement will lead to greater operational efficiency, improved customer experience, and more effective use of staff time.

Recommendation 9: Collect plan review fees at the time of application.

The Building Permit Technician is responsible for the intake of building permit applications, routing plans for review, and routing corrections back to applicants. Approximately five to 10 applications per month are walked into the public counter, and additional applications are emailed to the technician. Associated fees are paid after all reviewers have approved the application and contractor information has been provided. The building technician then downloads the plans, issues the building permit, stamps the plans and supporting documents, and creates an inspection record.

Currently, no fees are collected for plan review at submittal; they are instead collected when the permit is issued. It is a best practice to determine and collect fees at the time of application submittal to ensure optimal cost recovery for staff time spent reviewing a project. Revenue collection also suffers if the application is not approved or if the applicant decides not to seek a building permit for some reason.

Enacting this recommendation will require changes to department intake processes and instructions for applicants, which should be updated to reflect the new timing for fee collection. The process change would likely not require a code amendment because, as interpreted by the project team, collecting fees at the time of application is acceptable under the Arroyo Grande Development Code (Title 16 Development Code Chapter 16.12.030).

City Manager’s Office
The CMO provides leadership and coordination across the City. This includes ensuring effective operations management, supporting the City Council in achieving the community’s vision, guiding policy development, and advocating for the City’s interests on local and regional issues.

The CMO is staffed with 3.5 FTEs, as shown in the figure below. The Executive Secretary part-time position was added during the mid-cycle FY2024-25 budget update. In addition, the City Manager is responsible for overseeing the contracted City Attorney.
16 “Bluebeam Pricing.” Bluebeam, https://www.bluebeam.com/pricing/.

22 CITY OF ARROYO GRANDE
Figure 5: City Manager’s Office Organizational Structure, FY2024-25

CORE SERVICE MATRIX
The CMO is comprised of two elements: City Management and Human Resources. An overview of the core services performed by each program area is provided below and is not meant to be all-inclusive.

Table 9: City Manager’s Office Core Service Matrix
Division/Program Area Core Services
Leadership and Strategic Oversight
• Oversee the daily operations of all general government departments • Implement City Council policies
• Ensure adherence to the City’s laws and regulations
• Provide strategic direction and policy prioritization to staff Human Resources
• Manage personnel recruitment and employee separation
• Oversee performance evaluations and disciplinary processes • Coordinate labor relations and collective bargaining activities • Administer employee benefits programs
• Provide training and professional development opportunities for staff • Classification and compensation

STAFFING LEVEL HISTORY
Since 2020, the CMO added a Management Analyst (in FY2022-23) and transferred the HR Officer from Administrative Services to the CMO. The staffing history details are shown in table 10.

Table 10: City Manager’s Office Staffing History
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget
% Change
FY20-FY25
City Manager 1.0 1.0 1.0 1.0 1.0 0.0%
Human Resource Officer 0.0 0.0 1.0 1.0 1.0 100.0%
Management Analyst 0.0 0.0 1.0 1.0 1.0 100.0%
Executive Secretary 0.0 0.0 0.0 0.0 0.5 100.0%
Total 1.0 1.0 3.0 3.0 3.5 75.0%

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 23

STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 10: Add one full-time Executive Secretary position responsible for central reception and administrative support in City Hall.

As part of staff interviews, Raftelis learned about the various roles and responsibilities for each position. A common workload driver among staff in City Hall was administrative responsibilities, such as answering the phone, supporting customer walk-ins, providing support to employees, council administration, scheduling, and filing. The size of the organization is such that many internal services staff wear multiple hats throughout the day and often lean on other departments to cover the administrative workload demand. Many of these positions are also part-time, resulting in schedule adjustments and shift coverage. The figure below depicts Raftelis’ understanding of various administrative functions and what positions in City Hall support those functions.

Figure 6: City Hall Administrative Support Positions and Functions As shown in the graphic above, administrative support is scattered throughout the organization. While this ensures workload demand is met, it creates inefficiency among staff who constantly toggle between core responsibilities and covering administrative support needs. The need to respond to counter customers also disrupts their work, reducing efficiency.

To assess overall resourcing to meet administrative workload, Raftelis analyzed benchmarking communities’ structure and staffing for administrative job titles compared to the City. This exercise made inherent assumptions regarding job titles and typical responsibilities and may not be reflective of actual practice across each of the peer cities. Nevertheless, the analysis provided insight regarding typical administrative support resourcing for similar agencies. As indicated in the table below, the City lags behind its peer counterparts when comparing total staff to administrative staff Citywide. The higher the ratio, the less administrative staff are available to support City operations. This helps to explain why the administrative workload is dispersed across multiple positions, some of which do not align with core responsibilities (e.g., Senior Accounting Clerk covering the front counter).

24 CITY OF ARROYO GRANDE
Table 11: Administrative Support Benchmarking Analysis
Peer Agency Range
The Ratio of Total Staff to
Administrative Staff
(Citywide)
Low 11.9
Average 14.9
High 20.0
Arroyo Grande 26.1
A full-time central reception administrative support position is recommended for City Hall. This position should be structured as a generalist responsible for initiating customer service and gaining a basic understanding of the City’s permit and development processes and utility billing, which comprise a significant share of typical inquiries. To support the roles and responsibilities of this position, the City should include a computer and monitor, with access to key network drives and/or applications that can aid problem-solving and inquiry resolution. The position will require training from multiple department staff members to be successful in a generalist role. For non-traditional or technical inquiries, this position can direct customers to department specialists as needed. Centralizing this responsibility with a dedicated position should reduce distractions and increase capacity within Finance and Community Development staff to focus on core services.

In addition, the other area of responsibility for this full-time position is to provide administrative support for the CMO, such as taking telephone calls and scheduling. Creating a dedicated administrative position, will improve executive leadership’s responsiveness to community partners and the Council, reduce operational tasks that crowd out their ability to focus on strategic priorities and improve the capacity of the Management Analyst position in the CMO to provide analytic support for policy directives, special projects, and process improvement efforts.

The total estimated cost for this position, including benefits, is $100,100 per year based upon the salary schedule effective July 2024.

Recommendation 11: Increase the part-time Executive Secretary position in HR to fulltime and retitle to Human Resources Specialist.

The City’s HR function is embedded within the CMO. This is common practice among peer cities and reinforces HR as a strategic partner for the organization. Recently, the City Council authorized the hiring of a part-time Executive Secretary to support the HR Officer. Workload demand for HR services can vary throughout the year; however, like most local government organizations, internal service level expectations continue to increase. The City is aware of shifting workforce dynamics and composition, resulting in the need for proactive succession planning, organizational development and training, and expedient hiring to maintain service delivery. Moreover, the growing complexity of labor relations, employee relations, and risk management all add to workload drivers for HR.

In order to meet the growing service demands, the part-time position was hired to handle day-to-day tasks and the transactional activities that support employees. This improved the HR Officer’s capacity to focus on labor and employee relations, along with strategic initiatives. In practice, however, the part-time resource has been insufficient to support the various core services, and the HR Officer has had to rely on the Management Analyst position to meet workload demand. Similar to the central reception full-time staffing recommendation, a full-time second position is recommended for HR. Increasing the current part-time position to full-time will ensure workload demand is met and improve the organization’s ability to adapt to evolving needs in the future. Moreover, it streamlines the Management Analyst’s role and responsibilities to focus on financial and policy analysis, special projects, and process improvement, as well as support strategic initiatives and budget development.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 25
Investing in additional administrative staff now will also position the City for continuous improvement. Sufficient staff provides the capacity to implement new technology and workflows that lead to more efficient processing. They can also reduce reliance on outside contractors and consultants for core services. For example, within HR, adequate staffing provides the opportunity to review and improve existing labor contracts. This effort can address complex and nuanced policies that lead to inconsistent application or the need to rely on outside legal counsel for interpretation or negotiation.

The total estimated cost to increase this position to full-time, including benefits, is $63,300 per year based upon the current salary schedule.

City Manager
HR Specialist

1.0 FTE
Economic
Development
Coordinator

1.0 FTE
Assistant City
Manager

1.0 FTE
Executive Secretary
Central Reception

1.0 FTE
Management
Analyst

1.0 FTE
City Attorney
(Contracted)

1.0 FTE
Human
Resources
Officer

1.0 FTE
Human Resources Economic Development Administrative and Analytical Support
Figure 7: Proposed City Manager’s Office Organizational Structure

26 CITY OF ARROYO GRANDE
Legislative and Information Services
According to the City’s FY2023-25 Biennial Budget, the Legislative and Information Services Department’s purpose is to “be an effective, valuable communication point for the City Council, public, and staff; to ensure transparency and access to the legislative process and ensure compliance with applicable State and local laws and regulations relating to municipal elections, open meetings, financial reporting, and access to public records.”15 The department is staffed with 2.6 FTEs, including the City Clerk/Director of Legislative and Information Services, Deputy City Clerk/Communications Coordinator, and a part-time Executive Secretary. The department’s organizational chart is shown in the figure below.

Figure 8: Legislative and Information Services Organizational Structure, FY2024-25

CORE SERVICE MATRIX
The department is responsible for two programs: the City Clerk and Public Information. An overview of the core services performed for each program area is detailed in the table below and is not meant to be all-inclusive.

Table 12: Legislative and Information Services Core Service Matrix Division/Program Area Core Services
City Clerk
• Provide support to the City Council, City Manager, City staff, and the public • Manage agenda process
• Administer elections and access to City records
• Attest, seal, and certify official City documents
• Receive and file petitions, subpoenas, and summons
• Manage and hold vehicle titles and registrations
Public Information
• Collect, develop, and organize information for public dissemination • Distribute information through various media channels, including news outlets, newsletters and mailers, social media, email, the City website, and Government Access TV

STAFFING LEVEL HISTORY
The department previously housed the City’s IT function, but this function was relocated to the Administrative Services Department in FY2021-22, reducing overall staffing by 2.0 FTEs. The full staffing history for the department from FY2020-21 to the present is shown in the table below.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 27
Table 13: Legislative and Information Systems Department Staffing History Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Director 1.0 1.0 1.0 1.0 1.0 0.0%
Information Tech Manager 1.0 0.0 0.0 0.0 0.0 -100.0%
Information Tech Specialist 1.0 0.0 0.0 0.0 0.0 -100.0% Executive Assistant/Deputy
City Clerk 1.0 1.0 0.0 0.0 0.0 -100.0%
Deputy City Clerk/
Communications
Coordinator

0.0 0.0 1.0 1.0 1.0 100.0%
Sr. Office Assistant 0.6 0.0 0.0 0.0 0.0 -100.0%
Executive Secretary 0.0 0.6 0.6 0.6 0.6 100.0%
Total 4.6 2.6 2.6 2.6 2.6 -43.5%

STRUCTURE AND STAFFING RECOMMENDATION IMPACT
There are no recommended changes to the staffing or structure for the Legislative and Information Services Department. A handful of recommendations contained elsewhere in this report increase staff’s capacity to continue providing core services as well as improve proactive planning and implementation of recommended operational efficiencies.
• Streamline administrative responsibilities – with the recommended addition of a central reception administrative position (Recommendation 10) and increasing HR staffing from 1.5 to 2.0 FTEs (Recommendation 11), the current administrative workload for the department should decline. The department is currently helping cover the workload demand for these functions as needed within City Hall.

While it will be important for the department to help train new hires and provide backup support, it will streamline day-to-day responsibilities to align with core services. • Prioritize Strategic Communications Guidance – part of the executive leadership team’s roles and responsibilities includes oversight and guidance for key priorities in the organization (Recommendation 2).

One of those priorities is to provide guidance and oversight for communication. This should help clarify and align the work of the Deputy City Clerk/Communications Coordinator with the organization, including a better understanding of the desired communication approach across all departments when interacting with the community.

OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 12: Develop a plan to automate the public records requests by leveraging existing software to the greatest extent possible.

In interviews, staff noted that the workload associated with tracking and responding to Public Records Act (PRA) requests from the public has grown. The Deputy City Clerk estimates that approximately 25% of the time is now spent on public records requests. The PRA requires that Cities track and fulfill public requests for information from the public within 10 days, with certain exceptions. The City has no control over the volume of requests, phasing over time, or complexity. According to data provided by the department for this review, the number of PRA requests has increased by 53.5% from FY2019 to FY2024 as shown in the figure below. The dotted trendline shows an increase in workload.

28 CITY OF ARROYO GRANDE
Figure 9: Public Records Request Volume, FY2019–FY2024
In interviews with several City staff, the lack of electronic records and the need for scanning of paper records was noted. The City is attempting to modernize by digitizing hard-copy documents as quickly as possible. The Legislative and Information Services Director/City Clerk is the City’s designated records manager. The Executive Secretary is tasked with coordinating records management with departments for destruction and retention, and the department has received budget funding this fiscal year for a large, outsourced scanning project. For internal staff, however, this work typically takes a backseat to more pressing and time-restricted tasks such as supporting the City Council agenda process. The City contracts with an outside consultant records management specialist who is knowledgeable about State laws and retention requirements to ensure compliance and provide annual updates; contracting for this specialization is common across municipalities. Physical records are stored in multiple buildings, including the City Council storage, Old City Hall basement, Corporation Yard, and Women’s Club basement (the last being rented space which costs the City money). The reduction of physical records could improve operational efficiency and save money, reducing the need for additional staff capacity and improving response times to customers.

The City has already invested in some software tools to support these processes. The City uses Laserfiche for records management and Escribe® for agenda production. There is, however, no software in place to automate the PRA process workflow, which passes through multiple departments until completion. At present, PRA tracking is done using a Microsoft® Excel spreadsheet and manual reminders on calendars. The department has plans to request PRA software in the next budget cycle.

Given the growing volume of PRA requests and the time required to track and fulfill them, it is recommended that the City identify and implement a software solution that would automate the tracking of these requests. The department staff should work with a Laserfiche partner/vendor to scope the requirements to determine if the existing solution would support an automated workflow to track requests. The Department can lean on vendor expertise and support for other organizations with similar objectives to see what might be feasible within the City’s application system and contract provisions. If existing software applications cannot support electronic workflow, the identification of separate software should occur, be budgeted for, and implemented in collaboration with the IT staff.

Because Legislative and Information Services is the “hub” of the City’s records management and document workflow processes, it is paramount that the department takes the lead in selecting appropriate software for its purposes.

Long-term, tracking and analyzing PRA requests will provide insights into typical recurring requests and the amount of time it takes to respond. This data can inform where future process improvements would have a material impact on operational efficiency and staff time.
86 77 74
89 140 132
FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 29
Administrative Services
The Administrative Services Department provides accurate and timely financial and accounting information by maintaining the City’s financial systems and adequate internal controls, promoting transparency and fiscal responsibility. Additionally, the department collaborates with City departments to offer strategic technical guidance, ensuring technology initiatives are implemented efficiently and responsibly. The department encompasses seven FTEs across two divisions: Financial Services and IT. The organizational structure is depicted in the figure below.

Administrative
Services Director

1.0 FTE
Accounting
Manager

1.0 FTE
Sr. Accounting
Clerk (AP)

1.0 FTE
Sr. Accounting
Clerk (Utility Billing)

1.0 FTE
Sr. Accounting
Clerk (Payroll)

1.0 FTE
IT Specialist

1.0 FTE
IT Manager

1.0 FTE
Finance Information
Technology
Figure 10: Administrative Services Organizational Structure, FY2024-25

CORE SERVICE MATRIX
An overview of the core services provided by each division is detailed in the table below and is not meant to be allinclusive.

Table 14: Administrative Services Core Service Matrix
Division/Program Area Core Services
Financial Services
• Manage the City’s financial systems including utility billing, accounts payable, payroll, budgeting, and regulatory compliance
• Prepare the City’s annual operating budget and Annual Comprehensive Financial Report (ACFR)
• Submit required reports to the state and other agencies • Provide accounting services for the FCFA
• Track and ensure compliance with Measure E and Measure O sales tax measures
Information Technology
• Maintain and upgrade the City’s IT infrastructure
• Ensure network security and manage technology replacement programs • Provide technical support to City departments

30 CITY OF ARROYO GRANDE

STAFFING LEVEL HISTORY
Budgeted staffing totals in the department since FY2021-22 have stayed relatively consistent. However, as shown in the table below, the Department went through a reorganization in FY2021-22, during which the City’s HR function was relocated to the CMO, and the IT Staff joined the department, having previously been part of the Legislative and Information Services Department. This reorganization led to the net gain of one FTE in the department.

Table 15: Administrative Services Department Staffing History Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Director 1.0 1.0 1.0 1.0 1.0 0.0%
Human Resource Manager 1.0 0.0 0.0 0.0 0.0 -100.0%
Information Tech Manager 0.0 1.0 1.0 1.0 1.0 100.0%
Accounting Manager 1.0 1.0 1.0 1.0 1.0 0.0%
Accounting Supervisor 0.0 0.0 0.0 0.0 0.0 0.0%
Senior Accounting Clerk 3.0 3.0 3.0 3.0 3.0 0.0%
Information Tech Specialist 0.0 1.0 1.0 1.0 1.0 100.0%
Total 6.0 7.0 7.0 7.0 7.0 16.7%

STRUCTURE AND STAFFING RECOMMENDATIONS
The Finance Division workload is significant, with many tasks that have defined timelines that can increase the volume of work at different periods throughout the year. Recently, the division experienced turnover in one position, which is common for the profession, and it highlighted the impact of the existing workload, especially for the other positions responsible for absorbing the tasks. The implementation of a new enterprise resource planning (ERP) computer system required significant Department resources, in addition to meeting existing primary duties for each position. With the vacancy now filled, backup support and workload are adequately distributed; however, capacity for new initiatives or compliance requirements remains limited.

Recommendation 13: Add one Senior Accounting Clerk to the Finance Department.

The ability of the Finance Division to perform on time successfully is dependent upon staffing. Should there be no vacancies, the current staffing complement can meet basic needs and deadlines; however, turnover in recent years has highlighted the impact that vacancies can have on the department’s key tasks, such as bank reconciliation and audit completion. Currently, each Senior Accounting Clerk position has a designated duty or function. The Accounting Manager is responsible for both back-up support and oversight for each of these functions. Ideally, the Financial Services staff could be cross trained in multiple functions. The recent Accounting Manager vacancy also highlighted the need to rely on external consultant support for core services like financial planning and reporting.

Outsourcing can be an effective way to add staff capacity without bringing on permanent staff salaries plus benefits.

However, if the functional support provided is for routine tasks performed on a recurring basis, in-house staff over the long run are likely a more cost-effective solution. Consultants can still be utilized to support highly technical or specialized organizational needs. For this reason, adding an additional financial services position in the near term may yield a net cost benefit to the City while reducing the risk of performance declines when positions are vacant. It would also provide for additional backup to cover for absence (e.g., for vacation or training) and assist with succession planning so the City can internally promote staff rather than depend upon external recruitment when a

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 31
current staff member leaves or retires. The total estimated cost for this position, including benefits, is $105,900 per year based upon the current salary schedule.

A short-term opportunity to reduce reliance on financial consultants may include collaboration with the Management Analyst position in the CMO for budget development. Often, policy analysis is directly tied to resource planning. This position holds a unique opportunity for the City to leverage in-house analytical capabilities that connect resource allocation and planning with policy priorities. Regardless, it is important that the department assign in-house contract management responsibilities to ensure performance standards are being adhered to by external contractors.

Recommendation 14: Leverage the upcoming IT Master Plan to determine staffing levels.

As shown in the Administrative Services organizational chart above, the City has two full-time IT staff members, the IT Manager and an IT Specialist. These two positions perform all IT work, including user support, connectivity to the FCFA technology system, Police mobile data terminals and car/bodycam video, Public Works SCADA support and connectivity, fuel depot technology, Citywide wireless and internet systems, two servers and data centers, cybersecurity, and audio-visual support including for the City Council chambers. Outsourcing work is minimal except for firewall and switching administration, which is performed by consultants through an annual contract and for the implementation of special projects and new systems.

The City is moving to modernize its technology infrastructure. To do so, the City will continue to invest in additional IT resources over time to ensure that the City’s limited staff can work as efficiently and effectively as possible. Staff Citywide acknowledge this and recognize that effective implementation will require ongoing technical support for various applications that contribute to service delivery. IT staff noted that while they work very quickly, there is no dedicated support for public safety (Police and Fire) after normal business hours; the IT Manager typically responds either by phone or will come in, if necessary, but has worked to train Police and Fire staff to be as self-sufficient as possible.

Based upon data provided by IT staff, the unit averaged about 59 work orders/service tickets per month over the calendar year 2024. The service request ticketing system is fairly new and not 100% accurate, but it provides some insight into work volumes. A cursory review of the ticket log shows that the vast majority are providing service assistance to end users, such as setting up licenses and logins, troubleshooting software errors, and more. IT staff currently support 17 different software applications Citywide and an additional 12 for the Police Department.

Monthly ticket volumes are provided in Figure 11 below.

32 CITY OF ARROYO GRANDE
Figure 11: Information Technology Service Tickets by Month in 2024 Several departments in interviews noted the desire for more technology to continue to make processes more efficient.

The new applications discussed included Geographic Information Systems (GIS), Tyler Munis financials, Asset Management and work order systems, Public Records Act requests, and more. The City also continues to work to strengthen cybersecurity to ensure its data and IT resources are safe.

The City has already issued an RFP and is in the process of developing an IT master plan with a consultant. This plan will outline the City’s IT needs in detail, along with estimated staffing for implementation and ongoing support.

In order to gain efficiencies through greater use of automation and to improve system security, Raftelis recommends the City fund and implement the master plan recommendations to meet the City’s technology needs and ensure appropriate staffing levels.

The Master Plan recommendations should also inform the organizational structure of the City. IT, as a division of the Administrative Services Department, is a common practice among the benchmarking communities analyzed for this report; only Atascadero has a stand-alone IT department. Nationally, and certainly for larger organizations, however, common practice is for a stand-alone IT department. It is important that the organization understand the distinct functions of IT and work to ensure customer support needs are met. Similarly, it is important to include IT as a strategic partner among City leadership across the organization. IT staff need to interact with departments regularly to ensure technology solutions are working as intended. As part of succession planning, the ability to find Director-level leadership with both finance and IT expertise is rare and difficult. The City should continue to monitor customer service workload and resourcing requirements as outlined in the Master Plan recommendations to evaluate whether a stand-alone department is appropriate.

The following figure shows the proposed new organizational structure for the Administrative Services Department. 64 56
60 65 64
59 82
64 55
42 45
54

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 33
Figure 12: Proposed Administrative Services Department Organizational Structure Administrative
Services Director

1.0 FTE
Accounting
Manager

1.0 FTE
Sr. Accounting
Clerk (AP)

1.0 FTE
Sr. Accounting
Clerk (Utility Billing)

1.0 FTE
Sr. Accounting
Clerk (Payroll)

1.0 FTE
IT Specialist

1.0 FTE
IT Manager

1.0 FTE
Finance Information
Technology
Sr. Accounting
Clerk

1.0 FTE
IT Support
TBD

34 CITY OF ARROYO GRANDE
Public Works
The Public Works Department is responsible for the design, construction, maintenance, and operations of public infrastructure and facilities. This work is conducted by 30.8 FTEs across six divisions (Engineering, Utilities, Streets, Parks and Landscaping, Soto Sports Complex, and Fleet Maintenance). The organizational structure is depicted in the figure below.

City Engineer

1.0 FTE
Senior Engineer

1.0 FTE
Capital
Improvement
Project Manager

1.0 FTE
City Inspector

1.0 FTE
Utilities Manager

1.0 FTE
Utilities Supervisor

1.0 FTE
Utilities Lead
Worker

1.0 FTE
Maintenance
Worker

5.0 FTE
Water Services
Worker

1.0 FTE
Fleet Coordinator

1.0 FTE
Administrative
Secretary

1.0 FTE
Public Works
Manager

1.0 FTE
Soto Complex
Supervisor

1.0 FTE
Maintenance
Worker

1.0 FTE
Building &
Maintenance
Worker

1.7 FTE
Asst. City
Manager/Public
Works Director

1.0 FTE
Engineering
Fleet Maintenance
Utilities
Assistant Project
Manager
(VACANT)

1.0 FTE
Parks Supervisor

1.0 FTE
Parks Lead
Worker

1.0 FTE
Part-Time
Maintenance
Worker

0.7 FTE
Maintenance
Worker

2.0 FTE
Streets Supervisor

1.0 FTE
Streets Lead
Worker

1.0 FTE
Maintenance
Worker

1.0 FTE
Part-time Summer
Interns

1.4 FTE
Soto Sports
Complex
Parks and
Landscaping
Streets
Figure 13: Public Works Organizational Structure, FY2024-25

CORE SERVICE MATRIX
The table below provides an overview of the department’s core services by division, which is not meant to be allinclusive. Public Works operations, comprising most divisions besides engineering and leadership/administration, were excluded from the scope of the organizational review; however, a summary of core services is included based on a discussion with division leadership and the City’s budget document.

Table 16: Public Works Department Core Service Matrix
Division/Program Area Core Services
Engineering
• Ensure construction in the public right-of-way complies with adopted codes and engineering standards
• Manage subdivision processing and review
• Approve final subdivision maps
• Accept offers of dedication related to subdivisions
• Enter into agreements to complete required subdivision improvements

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 35
Division/Program Area Core Services
• Conduct inspections, respond to service requests, and, in some cases, initiate proactive code enforcement
Utilities
• Operate and maintain the City’s water and sanitary sewer systems • Manage critical infrastructure components, including water and sewer mains, pump and lift stations, reservoirs, and wells
Streets, Parks and Landscaping
• Maintain all city streets, sidewalks, and public rights-of-way • Maintain storm drains and street signage
• Perform maintenance of city parks and the Soto Sports Complex • Maintain all City-owned buildings
Soto Sports Complex
• Perform annual field maintenance activities, including hydroseeding, infield and outfield improvements, irrigation maintenance, fence repairs, and field lighting maintenance
Fleet Maintenance
• Perform maintenance activities on the Citywide vehicle and equipment fleet, including oil changes, tire service, brake pad replacement, and rotor maintenance, as well as more complex repairs
• Manage the fleet replacement and surplus vehicle/equipment programs • Handle procurement and bidding for new vehicles and equipment • Oversee fuel purchasing and maintain fuel pump and dispenser systems • Annually review and manage compliance with the San Luis Obispo County Air Pollution Control District (APCD) Permit

STAFFING LEVEL HISTORY
The scope of Raftelis’ operational and organizational assessment included Public Works leadership (Director and Division heads), administrative support staff, and engineering staff. The Engineering Division was moved to Public Works from the Community Development Department in FY2023-24. Overall staffing levels have increased moderately since FY2020-21. The table below details staffing composition and changes over the past five years.

Table 17: Public Works Department Staffing History
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Public Works Administration
Director of Public Works 1.0 1.0 1.0 1.0 1.0 0.0%
Public Works Manager 0.5 0.5 0.5 0.5 0.5 0.0%
Administrative Secretary 1.0 1.0 1.0 1.0 1.0 0.0%
Capital Projects Manager 1.0 1.0 1.0 1.0 1.0 0.0%
Assistant Capital Projects Manager 0.0 0.0 1.0 1.0 1.0 100.0% Engineering
City Engineer 0.0 0.0 0.0 1.0 1.0 100.0%
Associate Engineer 0.0 0.0 0.0 1.0 1.0 100.0%
Engineering Inspector 0.0 0.0 0.0 1.0 1.0 100.0%
Parks
Parks, Trees, and Landscape Supervisor 0.0 0.0 1.0 1.0 1.0 100.0% Maintenance Lead Worker 1.0 1.0 1.0 1.0 1.0 0.0%
Maintenance Worker 1.0 1.0 2.0 2.0 2.0 100.0%
Part-Time Maintenance Worker 1.4 1.4 0.7 0.7 0.7 -50.0% Streets

36 CITY OF ARROYO GRANDE
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Public Works Manager 0.5 0.5 0.5 0.5 0.5 0.0%
Streets Maintenance Supervisor 0.0 1.0 1.0 1.0 1.0 100.0% Maintenance Lead Worker 1.0 1.0 1.0 1.0 1.0 0.0%
Maintenance Worker 2.0 1.0 1.0 1.0 1.0 -50.0%
Soto Sports Complex
Maintenance and Coordination Supervisor 0.0 0.0 1.0 1.0 1.0 100.0% Maintenance Worker 2.0 2.0 1.0 1.0 1.0 -50.0%
Automotive Shop
Fleet Maintenance Coordinator 1.0 1.0 1.0 1.0 1.0 0.0%
Government Buildings
Building Maintenance Worker 1.0 1.0 1.0 1.0 1.0 0.0%
Part-Time Building Maintenance Worker 0.7 0.7 0.7 0.7 0.7 0.0% Water Fund
Utilities Manager 0.5 0.5 0.5 0.5 0.5 0.0%
Public Works Supervisor 0.0 0.0 1.0 1.0 1.0 100.0%
Public Works Lead Worker 1.0 1.0 1.0 1.0 1.0 0.0%
Water Services Worker 1.0 1.0 1.0 0.6 0.6 -40.0%
Maintenance Worker 4.0 4.0 3.0 3.0 3.0 -25.0%
Part-Time Summer Interns 0.7 0.7 0.7 0.7 0.7 0.0%
Sewer Fund
Utilities Manager 0.5 0.5 0.5 0.5 0.5 0.0%
Water Services Worker 0.0 0.0 0.0 0.4 0.4 100.0%
Maintenance Worker 2.0 2.0 2.0 2.0 2.0 2.0%
Part-Time Summer Interns 0.7 0.7 0.7 0.7 0.7 0.0%
Total 25.5 25.5 27.8 30.8 30.8 20.8%

STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 15: As part of succession planning, remove the Assistant City Manager responsibility from the Director position and officially designate the City Engineer as the Department Assistant Director.

The Public Works Department is essentially the largest non-safety department in the City. It requires dedicated leadership to ensure that the operations are efficient and effective, and consistent with the City Council and community strategies and objectives. Having the director assume the role of Assistant City Manager takes time and effort away from their leadership responsibilities as a department head, as indicated in Recommendation 1, it is essential that the Assistant City Manager role be transferred to a full-time position in the CMO.

Currently, the department's staffing organization structure is developed where all division heads report to the Director with no policy or guidance regarding who should be in charge if the Director is away or unavailable.

Although it is unofficially understood that the City Engineer is expected to be in charge when the Director is unavailable, there is no official policy or clear communication to department staff that this is indeed the case.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 37
In addition, having an officially designated Assistant Department Director allows for succession planning within the department to help prepare for a seamless transition when there is an opportunity for the department leadership position. The City Engineer is the senior position in the department after the Director and has responsibilities that cover all six divisions in the department. Therefore, it is the most logical position to be designated as the Assistant Director in addition to their role as the City Engineer.

Recommendation 16: Restructure engineering resources to align with Council infrastructure goals.

As previously indicated, the City Council has expressed its high-priority goal of infrastructure and resiliency to ensure that the community’s needs for safety and improved infrastructure are expeditiously fulfilled. Progress for this goal rests in effective planning and delivery of capital projects. The Engineering Division holds the primary responsibility to implement the capital projects plan in a way that is consistent with the City’s desire and priority order. To accomplish that, resources must be appropriately allocated to ensure adequate capacity for implementation. An example of implementation success was the planning and design approach used by the City’s engineering team for sidewalk replacement; it was thorough and included enhanced transparency and communication between the City and community as the project was being implemented.

With the increase in size and scope of capital projects and to ensure that the same approach will be used in other project implementations, additional resources will be required to complete design, issue contracts, and conduct follow-up inspections as these projects are being implemented. Currently, the Engineering division has a vacant assistant project manager position. This creates an opportunity to restructure this position to provide dedicated capacity for full-time design and inspections of capital projects. This allows for other engineers within the division to focus on design review and contract management to expedite implementation. In turn, this relieves the City Engineer from project management and allows for more department and staffing management to ensure effective operations and accountability for service delivery.

In addition, this added position will relieve the City Engineer and senior engineers from day-to-day field work and allow them to focus more on strategic implementation of the capital projects plan. It also offers a career path for entry-level staff to join the division and look forward to promotional opportunities. Based on Raftelis’ experience in the engineering industry recruitment field, it is quite difficult to hire qualified senior-level engineers, and an entrylevel offers a startup opportunity and exposure to working with and learning from experienced staff within the division.

There is not a material cost impact associated with the reclassification. The figure below shows the proposed new organizational structure for the Administrative and Engineering Divisions in Public Works.

38 CITY OF ARROYO GRANDE
City Engineer

1.0 FTE
Senior Engineer

1.0 FTE
Capital Project
Manager

1.0 FTE
Assistant Engineer

1.0 FTE
Utilities Manager

1.0 FTE
Administrative
Secretary

1.0 FTE
Public Works
Manager

1.0 FTE
Public Works
Director

1.0 FTE
Engineering
Engineering
Technician
(VACANT)

1.0 FTE
Figure 14: Proposed Public Works Organizational Structure, Administrative and Engineering

OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 17: Develop a formalized Asset Management Program.

One of the four Major City Goals set by the City Council during the FY2023-25 budget cycle was to “invest in and complete critical infrastructure projects throughout the City through the strategic prioritization of projects based on available resources.” Additionally, the Vision and Guiding Principles for the General Plan Update include “Prioritizing infrastructure investments and maintenance of roads, public transportation, and community facilities to support our community’s quality of life.17” This focus on infrastructure and capital improvement projects emphasized the need for the City to adopt a formalized asset management program.

Effective asset management is vital for ensuring the sustainability and efficiency of a city’s critical infrastructure. In simple terms, asset management involves evaluating the condition of assets and prioritizing both preventative and reactive maintenance activities. The aim is to maximize the useful life of assets, reduce risks, and minimize costs. A formal asset management program seeks to enhance the value and lifespan of assets through regular maintenance and targeted capital investments.

When maintenance is deferred and resources are not allocated effectively, service levels can decrease, leading to premature asset failure and reducing the effectiveness of infrastructure investments. By implementing well-defined and efficient asset management practices, organizations can allocate their limited resources to the areas that need them most, thereby improving day-to-day operations and informing long-term capital planning efforts. 17 “Vision and Guiding Principles,” Plan Arroyo Grande, August 2024.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 39
Asset management should be approached as a mindset or business practice in which a City’s infrastructure is viewed in an asset-centric manner rather than an operations-centric one. This perspective enables organizations to allocate limited resources more effectively and informs daily work planning as well as long-term capital improvements.

A formal asset management program involves conducting sufficient preventative maintenance and condition assessments to ensure that assets are kept in a predictable and known condition. This program facilitates the timely renewal and replacement of assets. If preventative maintenance is not performed regularly, the need for reactive or corrective maintenance will increase, leading to equipment failures. As this cycle continues, the demand and costs associated with reactive maintenance will outpace the ability to conduct preventative maintenance, resulting in a self-reinforcing cycle that exacerbates the problem.

The City should establish a formal asset management program to improve the efficiency, sustainability, and costeffectiveness of the City's infrastructure maintenance and capital planning efforts. This program will enhance critical asset tracking, maintenance, and replacement planning while aligning operational strategies with capital investment priorities.

This can be done in the steps outlined below.

Step 1: Develop an asset inventory and perform condition assessments A key initial step in developing this formal asset management program is completing an asset inventory and condition assessment. The inventory should categorize all assets by the likelihood of an asset failure and the potential consequences of failure. The likelihood of failure can be evaluated by considering the asset’s current condition and performance. When considering the potential consequences of failure, the department should assess the potential safety impact of failure, the potential environmental impact of failure, and the potential impact of failure on the City’s ability to provide services.

Both risks of failure and the likelihood of failure should be quantified with an overall number between one and 10, where one equals low risk/minimum consequences and 10 equals high risk/significant consequences. The two numbers can then be multiplied to produce the asset’s overall risk factor. For example, if an asset has a low risk of failure (three out of 10), but its failure would have a significant impact (eight out of 10), its overall risk factor would be three multiplied by eight, or 24. Assigning a risk factor to each asset will allow the department to identify its highest priorities for maintenance and repair. The department can also visualize its overall risk by plotting its assets in a matrix like below.

40 CITY OF ARROYO GRANDE
Figure 15: Risk/Consequence Matrix
The second step should be to develop a preventative maintenance schedule for each asset to maximize its useful life.

The schedules should be based on the needs and concerns identified in the condition assessments, manufacturer recommendations, and industry best practices. The department should also evaluate the condition assessments to project repair and replacement needs in the near future.

The department should regularly update its asset inventory. Staff should be instructed to track any changes to an asset’s status to ensure the department maintains an accurate record of its current condition. Furthermore, the comprehensive inventory should be reviewed annually and updated as needed.

Step 2: Develop an annual work planning process
Generally, work planning has five components:

1. Service Level Targets – The performance expectation of an activity tied to organizational goals

2. Tasks to be Accomplished – Specific tasks that need to be accomplished throughout the year

3. Schedule – The general timeline of when tasks need to be completed

4. Estimated Resources Required – The amount of staff time and other resources needed to accomplish each specific task

5. Assigned Personnel – The specific position(s) who will accomplish the task The department should establish service level targets based on the organization's goals and the specific maintenance and operational needs of individual assets. For example, sewer mains need to be flushed regularly to prevent material buildup and reduce the likelihood of stoppages. The frequency and resources devoted will depend on community expectations or guidance from policymakers.

Maintenance and operational tasks should describe the specific assets that need to be maintained and the resources needed. Documenting these tasks clarifies expectations for what it takes to provide the desired service level.

Using the list of maintenance and operational activities required to support desired service levels, the department should develop a schedule for when tasks will occur. It is important to proactively schedule when preventative maintenance will happen to balance workload throughout the year or to ensure tasks are being accomplished as other service demands.

The department should also estimate the labor hours required to accomplish the tasks laid out in the department's work plan. These estimates are critical to informing scheduling and allocating staff throughout the year. One of the best ways to estimate future labor hour requirements is to measure how long staff takes to perform existing assignments. This is best accomplished by implementing a work order system, as discussed in the next step.

Finally, the department should understand who will perform the assigned maintenance or operational tasks, including whether contractors or seasonal staff will be necessary. Understanding the time commitment and scheduling should inform who is responsible for maintenance tasks and what services should be performed by contractors or seasonal staff. Assigning tasks as part of an annual work planning process can also help improve crosstraining, skill-building, and collaboration among crews.

Step 3: Implement a Computerized Maintenance Management System

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 41
The Public Works Department does not currently utilize a work order management system. Implementing one will allow the department to document performance related to annual work plans and adjust them based on staff performance. It will also enable the City to balance proactive maintenance activities with reactive, complaint-driven work. Finally, tracking work orders, labor hours, and materials in a single system would improve the department’s ability to collect performance data, track it over time, and report it.

The City should implement a Computerized Maintenance Management System. A CMMS is a software solution that assists organizations in planning, monitoring, and reporting maintenance tasks and the condition of community assets. It generates and tracks work orders and allows staff to schedule maintenance activities effectively.

A CMMS would better enable the City to monitor the completion of scheduled maintenance activities and balance proactive maintenance with reactive and emergency work. It would also facilitate report generation, repair scheduling, inventory forecasting, and determining when and what assets require maintenance. A CMMS would also allow for regular, holistic analysis of the department’s workload and evaluation of whether service expectations are met. With this information, department leadership would be better equipped to make future staffing decisions.

A CMMS would also help track task completion time and materials. This information is helpful to understand the distribution of scheduled and reactive work completed by staff. It also enables the department to develop activitybased accounting, which is useful when making service-level decisions or evaluating opportunities to contract services. Finally, if a CMMS is integrated with the City’s GIS systems, it allows staff to map and associate tasks with existing assets in the community.

Step 4: Incorporate asset management planning into the capital improvement process Finally, asset management planning should be incorporated into the capital improvement process to ensure longterm sustainability and proactive maintenance. The program should be modeled after successful initiatives, such as the sidewalk improvement plan, using data-driven prioritization methods to:
• Assess asset conditions and identify maintenance and replacement needs • Develop long-term investment strategies to balance short-term repairs with strategic replacements • Prioritize projects based on risk, service level impacts, and available funding A well-structured asset management program will strengthen the connection between capital investment planning and operational budgeting. This integration will:
• Ensure that long-term maintenance costs are factored into capital decisions • Align funding strategies to optimize asset performance and reduce deferred maintenance • Provide transparency and accountability in infrastructure investment decisions By implementing a structured asset management program, the City will improve service delivery, reduce unexpected costs, and ensure the long-term sustainability of public infrastructure. This initiative will position the City of Arroyo Grande to proactively manage assets, extend their useful life, and optimize financial resources.

42 CITY OF ARROYO GRANDE
Recreation Services
The Recreation Services Department's purpose, according to the FY2023-25 Fiscal Year Budget, is “to provide healthy, sustainable, and safe environments and offer quality recreation, leisure, and cultural activities for people of all ages to play, learn, and build community. To foster human development and provide affordable health and wellness opportunities while supporting economic development by strengthening community image and sense of place.”15
The department is staffed with 5.9 FTEs, as shown in the figure below. The Recreation Specialist for Special Events part-time position was added during the FY2024-25 mid-cycle budget update.

Recreation
Services Director

1.0 FTE
Program &
Volunteer
Coordinator

0.5 FTE
Recreation
Specialist

0.5 FTE
Class Instructors
Contract
Recreation
Supervisor, Special
Events

1.0 FTE
Volunteers
Volunteers
Senior Facility
Attendant

0.7 FTE
Facility Attendant

0.5 FTE
Recreation
Coordinator,
Sports/Facilities/
Admin

1.0 FTE
Sports Facility
Attendant

0.2 FTE
Facility Attendant

0.5 FTE
Figure 16: Recreation Services Organizational Structure, FY2024-25

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 43

CORE SERVICE MATRIX
The table below details an overview of the core services provided by staff for each program area; it is not meant to be all-inclusive.

Table 18: Recreation Services Department Core Service Matrix Division/Program Area Core Services
Recreation Administration
• Provide leadership and oversight for the Recreation Services Department • Deliver high-level customer service to both internal and external stakeholders • Represent the City in partnerships with non-profits and local businesses • Administer the Tourism Business Improvement District
Facilities
• Provide and facilitate access to public facilities, including two community centers, parks, Soto Sports Complex, Community Gardens, and tennis and pickleball courts
• Coordinate public use requests and build relationships with external users • Administer and collect facility use fees
Special Events
• Plan, develop, and deliver opportunities for community engagement, fun, and celebration
• Collaborate with local agencies, non-profits, and businesses to enrich the community
Volunteer Program
• Recruit, train, and oversee volunteers for events, special projects, and City operations
• Build and maintain relationships with community groups and neighboring agencies
Adult and Youth Sports
• Coordinate adult basketball and softball sports leagues for the community • Coordinate the youth wrestling program
• Provide relevant active sports opportunities for adults and youth Special Interest Classes
• Contract with instructors to offer exercise, art, and enrichment classes • Partner with instructors and agencies to provide holiday and summer camps for youth

STAFFING LEVEL HISTORY
Recreation Services Department staffing has decreased by 64% since FY2020-21. This decrease is almost entirely due to the City’s transition of the before and after-school childcare activities to the YMCA, which took place in FY2023-24. The department’s full staffing history from FY2020-21 is shown in the table below.

Table 19: Recreation Services Department Staffing History Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Recreation Director 1.0 1.0 1.0 1.0 1.0 0.0%
Recreation Supervisor 0.3 0.3 0.3 1.0 1.0 233.3%
Recreations Coordinator 0.4 0.4 0.4 1.0 1.0 150.0%
Office Assistant I 0.4 0.4 0.4 0.0 0.0 -100.0%
Administrative Secretary 0.6 0.6 0.6 0.0 0.0 -100.0%
Volunteer and Class Coordinator 0.5 0.5 0.5 0.5 0.5 0.0% Facility Attendant 1.7 1.7 1.7 1.7 1.7 0.0%
Sports Facility Attendant 0.2 0.2 0.2 0.2 0.2 0.0%
Recreation Specialist 0.0 0.0 0.0 0.0 0.5 100.0%

44 CITY OF ARROYO GRANDE
Position FY20-21
Actual
FY21-22
Actual
FY22-23
Budget
FY23-24
Budget
FY24-25
Budget % Change
Recreation Supervisor - Preschool 0.2 0.2 0.2 0.0 0.0 -100.0% Preschool Teacher 1.7 1.7 1.7 0.0 0.0 -100.0%
Recreation Supervisor - Children in Motion 0.5 0.5 0.5 0.0 0.0 -100.0% Recreation Coordinator - Children in Motion 0.6 0.6 0.6 0.0 0.0 -100.0% Teacher - Children in Motion 3.5 3.5 3.5 0.0 0.0 -100.0% Assistant Teacher - Children in Motion 1.2 1.2 1.2 0.0 0.0 -100.0% Assistant I and II - Children in Motion 2.2 2.2 2.2 0.0 0.0 -100.0% Total 15.0 15.0 15.0 5.4 5.9 -60.7%

STRUCTURE AND STAFFING RECOMMENDATIONS
Recommendation 18: Transition the Tourism Business Improvement District (TBID) responsibilities to the Economic Development Program.

The Recreation Services Director and part-time Recreation Specialist position support the activities and requirements for the City’s TBID. Looking ahead, TBID aligns with the broader Citywide focus on economic development and vitality. Recommendation 4 provides additional detail regarding a proactive economic development program and TBID’s role.

This recommendation impacts the staffing composition and core services for the Recreation Services Department.

The proposed reclassification of the part-time Recreation Specialist position reduces overall staffing levels; however, as part of workload assessment and review, this position spent nearly all its time on TBID-related activities. In addition, TBID’s responsibilities also fell to the Director. Removing this program from Recreation Services should ultimately provide enhanced capacity for the Director to provide strategic oversight for the department’s two core functions: recreation programming and special events. The proposed new organizational structure for the Recreation Services Department is shown in the figure below.

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 45
Figure 17: Proposed Recreation Services Department Organizational Structure

OPERATIONAL EFFICIENCY RECOMMENDATIONS
Recommendation 19: Establish a framework to evaluate special events programming.

Currently, the Recreation Services Department provides staff and financial support for numerous community programs and special events. Examples include Mother’s Day Tea, Father’s Day Dance, Meet the Machines, and more. These events are well-received and serve to provide a sense of community, bringing residents and visitors into the City and, hopefully, supporting local businesses while there.

However, special events – like sunny days – are rarely ill received; the community will happily partake in as many events as offered. Staff shared that the department has a relatively informal process for evaluating the continuation or creation of events, and that some local events have shifted under the department’s purview in recent years. The department operates with a lean, dedicated staff who are willing to go the extra mile and endeavor to make informed decisions about programming. However, interviews indicated that there is somewhat limited bandwidth for strategic priorities, like strengthening sponsorship solicitation materials, and that there could be a risk of staff burnout or diminished service delivery if the events calendar becomes overprogrammed.

To ensure the most efficient use of limited staff resources, the City should develop guidelines and work with City leadership to develop a framework used to evaluate special events each year. The development process could include identifying relevant metrics18 for event types, such as learning opportunities at Meet the Machines or cost recovery at the Mother’s Day Tea. Based upon the developed framework, Recreation Services staff can focus upon a limited number of well-planned events and reserve some staff capacity for other important tasks.

A potential framework might include ranking events for:
18 “Best Practices for Evaluating Event Success.” Eventmobi, https://www.eventmobi.com/blog/best-practices-forevaluating-event-success/.

Recreation
Services Director

1.0 FTE
Program &
Volunteer
Coordinator

0.5 FTE
Class Instructors
Contract
Recreation
Supervisor, Special
Events

1.0 FTE
Volunteers
Volunteers
Senior Facility
Attendant

0.7 FTE
Facility Attendant

0.5 FTE
Recreation
Coordinator,
Sports/Facilities/
Admin

1.0 FTE
Sports Facility
Attendant

0.2 FTE
Facility Attendant

0.5 FTE
Recreation
Specialist
(VACANT)

0.5 FTE
Reclassified as
Economic
Development
Coordinator
Special Events Recreation Services

46 CITY OF ARROYO GRANDE
• Numbers of residents or participants served or of local partners engaged • Economic impact on local businesses
• Availability and access to lower socio-economic groups • Cost recovery
• Staff and budgetary resources necessary for planning, execution, and any follow-up • Redundancy or similarity to other existing community or regional events Determinations regarding the balance of cost recovery to community benefit can be informed by the “Cost Recovery Pyramid”19 below.

Figure 18: Cost Recovery Pyramid
If desired, a subcommittee of Recreation Services and internal services staff can perform the ranking and present results to City leadership for discussion and approval. The evaluation process should be timed to inform budget development, but the framework can detail any priorities that would justify adding new events during the fiscal year.

If an existing or new event does not align with the City’s framework, then the department can use the opportunity to evaluate the event and communicate the reasoning behind the resulting decision with the full team. Some questions that can inform the process include:
• What staffing and materials are needed, and from which sources, to successfully prepare, execute, and wrap up the event?
o Resources that are free or already budgeted should also be captured, as their use impacts availability for other events/programming
o Consider: can community volunteers or partners support or even manage the event? • What is the anticipated or demonstrated audience for the event? • How does the event advance the City’s strategic plan objectives? • How does the event support the department’s cost recovery goals? 19 Brandenburger, Alaina, “The Cost Recovery Pyramid: Methodology that Works,” The Leading Edge Newsletter:

Winter/Spring 2014, GreenPlay LLC.

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OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 47
• Does the addition or continuation of the event inhibit the department’s ability to pursue higher-priority opportunities?
A formalized process can also help ensure that programming aligns with the City’s identified priorities. For example, events offer opportunities for requesting sponsorships from and/or driving customers to local businesses, which can support economic development. However, it can often be assumed that the opportunities can be accessed with simple, low-lift outreach while thoughtful planning and strategic communications are actually required.20 The new framework can inform these kinds of decisions and maximize the City’s investments in staff and financial resources. 20 “Mastering downtown event evaluation.” Wisconsin Economic Development Center, https://wedc.org/masteringdowntown-event-evaluation/.

48 CITY OF ARROYO GRANDE
Conclusion
The City of Arroyo Grande has transformed from agrarian roots to a full-service City. This growth required the effective allocation of limited resources to meet community needs. Looking ahead, the City Council has set clear goals designed to achieve economic vitality and sustainability through thoughtful development and organizational effectiveness. The recommendations outlined in this operational and organizational assessment are intended to strengthen the organization by identifying the resources and opportunities to best position the City for long-term success.

In particular, the staffing and structural recommendations identify the necessary staffing levels across departments and programs that support service delivery expectations. Where appropriate, they reflect full-time positions to recognize where the current or projected workload demand supports such needs. The implementation of these recommendations will need to consider the City’s ability to support new positions with ongoing revenue and the timing of specific staffing changes or composition. For example, the City has actively begun succession planning for multiple leadership positions. Some recommendations may be best supported as part of the transition process.

Ultimately, it is up to the City to determine the prioritization and timing of each recommendation.

The table below summarizes recommended staffing changes, including estimated fiscal impact. It is followed by a proposed Citywide organizational chart reflecting the recommendations contained in this report.

Table 20: Summary of Recommended Staffing Increases
New Position Job Title / Role FTE
Increase
Estimated
Cost Priority
Assistant City Manager 1.00 $262,600 Short-term
Economic Development Coordinator (Reclass vacant PT to FT) 0.50 $110,500 Short-Term Community Development Office Assistant (PT to FT) 0.50 $43,400 Short-term Central Reception Administrative Support 1.00 $100,100 Short-term HR Specialist (PT to FT) 0.50 $63,300 Short-term
Finance Senior Accounting Clerk 1.00 $105,900 Long-term IT Specialist / Customer Service Support TBD TBD Long-term

4.50 $685,700

OPERATIONAL AND ORGANIZATIONAL ASSESSMENT 49
City Manager

1.0 FTE
Legislative and
Info Services

2.6 FTE
Public Works

30.8 FTE
Administrative
Services

8.0 FTE
Community
Development

8.0 FTE
Police

31.5 FTE
Recreation
Services

5.4 FTE
City Attorney
(Contracted)
Human
Resources

2.0 FTE
Management
Analyst

1.0 FTE
Internal Services Operations
Assistant City Manager

1.0 FTE
Economic
Development
Coordinator

1.0 FTE
Executive Secretary
Central Reception

1.0 FTE Public Safety
Five Cities Fire
Authority
(JPA)
Figure 19: Proposed Citywide Organizational Chart

Item 11.c.

MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Director of Public Works Nicole Valentine, Director of Administrative Services Director Shannon Sweeney, City Engineer
Theresa Wren, Capital Improvement Projects Manager
Aleah Bergam, Management Analyst
SUBJECT: Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
DATE: May 13, 2025
RECOMMENDATION:
1) Adopt a Resolution approving the City’s 10-Year Capital Improvement Program for Fiscal Year 2025-26 through Fiscal Year 2034-35; and
2) Find that the approval of the Resolution is statutorily exempt from the California Environmental Quality Act (CEQA) under State CEQA Guidelines, Section §15061(b)(3), as such approval does not have the potential to result in an effect on the environment.

The approval does not commit the City to any of the identified projects in the CIP. Each individual project in the plan will be subject to CEQA review as required by law. Secondly, this action constitutes an organizational or administrative activity that will not result in a physical change in the environment and is therefore not subject to CEQA pursuant to Section §15378(b)(5).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

The proposed 10-Year Capital Improvement Program (CIP) Budget allocates $138.1 million for projects from various funding sources from FY 2025-26 through FY 2034-35.

During the FY 2025-27 Biennial Budget, it is anticipated that $33.5 million will be allocated for CIP projects. Of the $33.5 million, $11.8 million is from the Measure E-24 Local Sales Tax Fund and $5.1 million is from the Measure O-06 Local Sales Tax Fund. The CIP projects will be delivered using City staff time, consultants, and contractors. As projects are developed and detailed, the impact to staff resources will be determined and included in future Staff Reports for individual projects.

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

BACKGROUND:

The City’s budget provides funding for all City services, infrastructure investments, and activities performed during each fiscal year. The two major components of the budget are ongoing operations and capital improvement projects, or one-time expenditures. Although the City’s upcoming budget is a two-year budget, capital project needs often involve a multi-year approach, with design and survey work occurring in one year, followed by construction in the following years. Depending on complexity, capital projects can span several years.

Historically, the City has adopted a rolling 5-Year CIP that identifies, prioritizes, and budgets for capital infrastructure needs such as roads, water and sewer systems, parks, and facilities. While this approach has served the organization well, growing infrastructure demands and increasingly complex funding environments have highlighted the need for a longer planning horizon. This report has transitioned CIP from a 5-Year CIP framework to a 10-Year planning horizon, a change intended to improve long-range financial planning, infrastructure forecasting, and alignment with strategic goals.

Rationale for the 10-Year transition include:
 Improved Long-Term Planning: A 10-Year plan allows staff to more comprehensively forecast infrastructure needs and budget impacts, particularly for large-scale or phased projects.
 Better Alignment with Master Plans and Strategic Goals: Many of the City's strategic documents (e.g., General Plan, Water and Wastewater Master Plans) have 10+ year horizons. Extending the CIP timeframe ensures better alignment with these documents.
 Enhanced Grant Readiness: Federal and state infrastructure grants often require long-term capital planning and readiness. A 10-Year CIP supports stronger applications.
 Fiscal Sustainability: A longer outlook improves the City’s ability to analyze longterm debt, operational costs, and capital reserve funding.

Identifying a project in future years does not mean it will automatically be funded in those years. During each budget cycle, all capital projects are reviewed and prioritized against then-current needs and available funding.

Enterprise Funds for water and sewer are included in this report to the degree that their budgets reflect the capital improvement projects necessary to sustain those operations.

Enterprise budgets are developed in close coordination with the 10-Year water and sewer master plans and the projected revenue generation of the funds based on adopted rates.

Enterprise operating budgets will be presented to the City Council with the draft operating budgets of other funds on May 27, 2025.

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

On April 22, 20251, City Council approved the Plan for Pavement Management Program Update (PMP Update). Through efforts to support the City Council’s decision to place Measure E-24 on the 2024 General Municipal Election, the community ranked investments in City infrastructure, such as street repairs and sidewalk improvements, as well as public safety, as top priorities for the use of Measure E-24 funds. Measure E-24, increases the City’s sales tax by 1%, generating approximately $6 million annually for critical City services, infrastructure improvements, and community programs.

In response to the City Council’s establishment and prioritization of street repairs and sidewalk improvements as one of the key goals for the upcoming Fiscal Year 2025-27 Budget, staff developed a plan that addresses pavement maintenance for all streets throughout the City that have been incorporated into this 10-Year CIP.

ANALYSIS OF ISSUES:

Approach to Analysis and Prioritization of CIP
A systematic approach to identifying and prioritizing projects was implemented for the proposed 10-Year CIP Budget. Department Directors submitted requests for capital improvement projects, including costs, schedule, and priority (low, medium, and high). A diverse team of City staff from the City Manager’s Office, Administrative Services, Engineering, Community Development, Police, and Public Works (the CIP team) attended a series of collaborative workshops to discuss the requested capital improvement projects in consideration of many factors including:
 Safety
 Community benefit
 Funding source
 Funding schedule i.e., timeframe for completion before external funding expires  Staff capacity
 Urgency – consideration of deferred maintenance costs and/or end of useful life  Number of projects per department i.e., water, streets, parks, fire, police etc.

The CIP team used the factors listed above to evaluate proposed projects. The workshops resulted in a 10-Year CIP plan that is provided in Attachment 1, Exhibit A.

CIP Projects Completed in FY 2024-25
Many projects in the CIP take more than one fiscal year to complete, and each year progress is made toward completion of these projects. The following CIPs have been completed or are anticipated to be completed during FY 2024-25:
 Public Safety Video Cameras (Phase 1)
 Swinging Bridge Rehabilitation
 Lift Station 3

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14368

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

 Replacement Generator at Fire Station 1
 Phased Main Replacement – Highway 101 Crossing Upgrade, El Camino Real to West Branch Street
 Trenchless Sewer Rehabilitation -El Camino Real to West Branch St.  Fire Station 1 Apparatus Bay Doors
 191 Tally Ho
 Public Works Office Space Remodel
 Galvanized Service Replacements
 2024 Streets Repairs
 Cornwall Waterline Replacement
Overview
This Capital Improvement Program (CIP) outlines anticipated City infrastructure improvements for fiscal years FY 2025-26 through FY 2034-35 and serves as a public information document to advise residents and property owners on how the City plans to address significant capital needs. It contains information about the scope, location and funding for these projects.

Each year, the overall goal for capital improvements and the means for accomplishing them are assessed. Every project in the plan has been considered for its financial feasibility, environmental impact, conformance to previously adopted plans, priorities established from the City Council, and ability to meet public needs.

The FY 2025-26 through FY 2034-35 CIP totals $138,128,065. It is a flexible plan that can be altered as conditions, funding, priorities and regulations change.  The CIP is divided into nine category types – Bridges, Drainage, Parks & Play Structures, Public Facilities, Sewer, Sidewalks, Streets and Transportation, Technology, and Water.

Funding Sources
All funding sources that may be used for various capital improvements are reviewed each year. Much of the work to develop the CIP focuses on the balancing of available resources with the identified capital needs. There are limited sources of funding available for capital improvements, some sources like Development Impact Fees (DIF) have restrictions on their use within broad categories. The City continues to aggressively seek grants for a wide variety of needs. While by their nature, these grants are only available for specific projects and purposes, and are often cyclical and competitive, they represent a significant addition to local funds. Grants are the most viable source to fund new improvements and allow internal funds to be kept available for existing assets. Internal funds are also necessary for leverage and matching fund requirements of grants.

The FY 2025-26 through FY 2034-35 Capital Improvement Plan has 23 funding sources.

The total estimated cost of all projects included in the 10-Year plan, is $138,128,065. A

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

summary of the costs by funding source is summarized in Table 1. Table 1 is followed by Figure 1, illustrating the percentage of each funding source supporting the entire 10-Year CIP plan.

Table 1: FY 2025-26 through FY 2034-35 Capital Improvement Projects by Funding Source
Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total Active Transportation
Program (ATP) $ 3,200,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,200,500 Community Development
Block Grant (CDBG) 80,866 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 530,866 Fire Facilities DIF - - - 150,000 - - - - - - 150,000
Highway Bridge Program
(HBP) 5,673,679 44,265 44,265 44,265 44,265 - - - - - 5,850,739 In-Lieu Parking Fee - 144,000 - - - - - - - - 144,000
Measure E-24 Sales Tax 5,952,640 5,846,200 5,699,000 6,929,000 5,954,400 8,571,900 7,562,200 5,567,300 8,247,300 9,603,900 69,933,840 Measure O-06 Sales Tax 3,045,480 2,021,235 1,493,235 1,058,235 793,235 1,145,000 1,115,000 400,000 2,090,000 660,000 13,821,420 Other Gov Agencies - 150,000 2,250,000 2,250,000 - - - - - - 4,650,000 Park Improvement 20,000 50,000 - - - - - - - - 70,000
Park Facilities DIF - 310,000 - - - 100,000 - 600,000 - - 1,010,000 Police Facilities DIF - 25,000 25,000 - - - - - - - 50,000 Recreation Facilities DIF - - 15,000 15,000 - - - - - - 30,000 Safe Routes to School
(SR2S) - - - - - 2,000,000 - - - - 2,000,000
Safe Streets and Roads
for All (SS4A) - 200,000 640,000 5,400,000 - - - - - - 6,240,000 Senate Bill 1 (SB1) 481,000 495,400 510,300 525,600 541,400 557,600 574,300 591,500 609,200 627,500 5,513,800 Sewer Facility DIF - 138,744 432,200 - 475,000 - 300,000 - - 850,000 2,195,944 Sewer Fund - 193,256 432,200 250,000 475,000 129,000 300,000 1,554,000 - 250,000 3,583,456 State COPS Block Grant
Fund 200,000 125,000 - - - - - - - - 325,000
Storm Drain Facilities DIF - 12,500 7,500 2,500 2,500 - 10,000 - 10,000 - 45,000 Traffic Signalization DIF - - 84,000 - - - - - - - 84,000 Transportation Facilities
DIF 1,238,500 2,072,000 - - - - - - - - 3,310,500 Water Facility DIF 401,100 191,955 - 150,000 - - 744,800 - 292,500 - 1,780,355 Water Fund 398,900 693,045 500,000 880,000 719,000 1,500,000 248,200 62,000 5,972,500 2,635,000 13,608,645 Total $ 20,692,665 $ 12,762,600 $ 12,182,700 $ 17,704,600 $ 9,054,800 $ 14,053,500 $ 10,904,500 $ 8,824,800 $ 17,271,500 $ 14,676,400 $138,128,065

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

Figure 1: FY 2025-26 through FY 2034-35 Capital Improvement Projects by Funding Source
A full list of all projects with proposed funding in the upcoming 10-Year CIP Budget is included as Attachment 1, Exhibit A. Significant projects are discussed below:

Major CIP Starting or Completing in FY 2025-26 and FY 2026-27 (Year 1 and 2)  Traffic Way Bridge
The Traffic Way Bridge was built in 1932 and has been evaluated for structural and functional integrity. The Caltrans Bridge Inspection Program has determined that the bridge needs replacement. Of the $13.8 million total project cost, the City has secured HBP grant funding that will pay $12.2 million of the project costs. The

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

City will need to fund the remaining $1.6 million to pay for the remainder of the costs. The key milestone of design, environmental determination, and permitting was completed in FY 2023-24, and construction commencing in May 2025, completing in December 2025.
 Halcyon Complete Streets Plan
The Halcyon Complete Streets Plan is a concept plan to develop an improved transportation corridor on Halcyon Road that provides for safe mobility and accessibility for all users, including bicyclists, pedestrians, transit vehicles, trucks, and motorists. The Plan proposes multimodal transportation enhancements to address a lack of bicycle lanes, sidewalks, unsignalized crossings, and intersections with poor visibility. Construction of the project is funded with $250,000 in Highway Safety Improvement Program (HSIP) funds, $750,000 in Community Betterment Grant funds, and $8.1 million in Active Transportation Program (ATP) funds. The key milestone of completion of design, environmental determination, and permitting is expected to be completed in FY 2025-26, and construction is anticipated in FY 2025-26.
 Pavement Management Program (PMP)
The proposed 10-Year CIP Budget includes a total of $58.3 million for maintaining the City’s public streets, alleys, and parking lots. This includes maintenance applications such as digouts, slurry seals, and pavement overlays to the extent that funds are available. This program also includes providing Americans with Disabilities Act (ADA) compliant pedestrian facilities such as curb ramps when triggered by certain maintenance applications that are considered an alteration of a street (e.g., overlays). A breakdown of the PMP presented to City Council on April 22, 20252, was incorporated into the 10-Year CIP.  Huasna Road Roundabout
One of the major circulation improvements identified in the Circulation Element was on East Branch Street at Huasna Road/Corbett Canyon Road, adding a new roundabout to help improve the flow of traffic. This project was included in the Development Impact Fee (DIF) Nexus Study Update and will be funded with the Transportation Facilities DIF.
 Sewer and Water Infrastructure
The proposed 10-Year CIP Budget includes $21.2 million for the continuation of replacing, rehabilitating, and maintaining the City’s water and sewer infrastructure.

This includes rehabilitating deteriorating sewer manholes, rehabilitating sewer mains through trenchless lining techniques, replacing, enlarging and installing

2 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14369

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

interconnect water mains, replacing aging water mains, and water reservoir recoating.
 Master Plan Updates
o E. Grand Avenue (Halcyon to Elm) Economic Development Master Plan develops a comprehensive corridor plan that considers the needs and goals of multimodal users, residents, businesses, and City leaders for East Grand Avenue with a focus on the section from Halcyon Road to Elm Street. Objectives include economic enhancement and vitality, safety, providing distinct nodes/gateways/districts, functionality, and beautification. o Stormwater Master Plan evaluates infrastructure & practices of Stormwater system for current & future needs; Watershed Management Plan assesses a watershed including water quality, flood risk, protecting water bodies, etc. o Master Plan for Elm St., Soto Sports Complex, Don Roberts Field, and the City Corporation Yard to address connectivity, best use, restroom locations, year-round field use, and community survey for community center project.

Major CIP Starting or Completing in FY 2026-29 (Year 3-5)  Community Center Building
The Recreation Services Department Community Center Building is currently identified as a Capital Improvement Project to evaluate the potential design and cost of a replacement community center. Additionally, potential partnership opportunities will be explored with local non-profit service providers, such as the Boys and Girls Club, to determine whether the Community Center Building may be replaced with a structure that could serve multiple community needs while also minimizing costs to the City. The overall cost of site, parking lot, and building design, construction documents, site construction, and building construction are anticipated to reach the $6 million range. An estimated time frame for final design and construction documents is FY 2026-27 with fundraising and construction of the $6 million Community Center beginning in FY 2027-28 and FY 2028-29.  East Grand Streetscape Planning and Construction
The East Grande Streetscape Planning and Construction project provides for safe mobility and accessibility for all users, including bicyclists, pedestrians, transit vehicles, trucks, and motorists in conjunction with the Economic Development Master Plan Economic Development Plan for E. Grand Ave.  Branch Mill Road Slope Stabilization
Design of Branch Mill Road Slope Stabilization begins in FY 2029-30 with the construction phased scheduled to begin in FY 2030-31. This is one of the 3 main streets not addressed in the 13-Year PMP. The design phase of this project will

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

help find solutions to correct the slope that continues to fall into the nearby creek area. Once the City Council has approved the design of the slope stabilization the construction contractor will be selected and construction can begin.

Measure O-06 Sales Tax Fund
The Measure O-06 Sales Tax Fund revenue generated by this half-percent tax Arroyo Grande currently has a ½ cent (0.5%) sales tax measure that was approved by the voters in 2006.

Measure O-06 passed in 2006 by the majority voter approval required for establishing a local transaction and use tax. The operative date of the transactions and use tax commenced on April 1, 2007. Advisory Measures K-06, L-06, M-06, and N-06 were placed on the ballot to ask voters if a portion of the revenue from the sales tax should be used to fund specific needs identified in the City's long-range financial plan.

Advisory Measure K-06 (transportation improvements) asked:
 If the proposed sales tax measure is approved, should a portion of the proceeds be used to fund transportation improvements, including, but not limited to, upgrade of the Brisco Road/Halcyon Road – Highway 101 Interchange?  This Advisory Measure passed favorably by 70.45%.

Advisory Measure L-06 (infrastructure improvements) asked:
 If the proposed sales tax measure is approved, should a portion of the proceeds be used to fund maintenance and upgrade of City’s infrastructure, including, but not limited to, street maintenance and improvements, upgrade of the drainage system, and projects to prevent pollution, erosion and sedimentation in the creek system from storm water runoff?
 This Advisory Measure passed favorably by 68.57%.

Advisory Measure M-06 (public safety equipment, staffing, facilities) asked:
 If the proposed sales tax measure is approved, should a portion of the proceeds be used to fund public safety expenses, including, but not limited to, expansion of the Police Station, purchase of Fire apparatus, and additional Fire Department staffing?
 This Advisory Measure passed favorably by 59.89%.

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

Advisory Measure N-06 (improving City facilities/ADA compliance) asked:
 If the proposed sales tax measure, is approved, should a portion of the proceeds be used to fund improvements to City facilities to meet Federal Americans with Disabilities Act (ADA) requirements, including, but not limited to, upgrade of the City Hall Complex?
 This Advisory Measure did not pass, receiving 58.85% "No" votes.

The Advisory Measures are not legally binding; however, they provide important information to the City to help establish funding priorities and the City has spent its Measure O-06 funds consistent with the advisory measures since 2007. On May 12, 2015, the City Council confirmed that “infrastructure improvements” funded through Measure O-06 revenue may also include information technology infrastructure, such as network servers, switches and enterprise-wide software. To ensure accountability, Measure O-06 required: 1) the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds; and 2) a review and public hearing by the City Council every five years to determine whether the sales tax is necessary to remain in effect.

In prior fiscal years, the General Fund pays for 75% of the cost of the Five Cities Fire Authority (FCFA) contract and the Measure O-06 Local Sales Tax Fund pays for 25%. In addition, Measure O-06 currently pays for one police officer position. The proposed 10- year plan for the Measure O-06 Sales Tax Fund has shifted this allocation to the General Fund pays for 65% of the cost of the Five Cities Fire Authority (FCFA) contract and the Measure O-06 Local Sales Tax Fund pays for 35%. In addition, Measure O-06 currently pays for two police officer positions.

The Measure O-06 Sales Tax Fund will support capital needs relating to transportation, public safety, and infrastructure. Approximately 62% of the revenue funds public safety programs, approximately 37.5% funds capital programs, and the other 0.5% funds administrating the funds. The 10-year revenue and expenditure plan provided in Attachment 2 is prepared in order to support the multi-year nature of the capital projects funded with revenue from the 10-Year Measure O-06 Sales Tax Fund and to provide an opportunity for Council and the public to review and revise the proposed uses of the funding.

Measure E-24 Sales Tax Fund
Measure E-24 Sales Tax was approved by the voters in November 2024 and will generate revenue from a one percent (1.0%) sales tax. This revenue will be accounted for in a separate Measure E-24 Sales Tax Fund.

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

Measure E-24 passed by 64.95%, which met the majority voter approval required for establishing a local transaction and use tax, to fund city services, such as: fixing potholes, maintaining city streets, sidewalks, parks, aging infrastructure, and community facilities; providing local fire protection, police, and 9-1-1 emergency services; cleaning up litter/graffiti, and addressing homelessness. The operative date of the transactions and use tax commenced on April 1, 2025.

The Measure E-24 Sales Tax Fund will support capital needs relating to transportation.

Approximately 99.5% of the revenue funds capital programs and the other 0.5% funds administrating the funds. The 10-year revenue and expenditure plan provided in Attachment 3 is prepared in order to support the multi-year nature of the capital projects funded with revenue from the 10-Year Measure E-24 Sales Tax Fund and to provide an opportunity for Council and the public to review and revise the proposed uses of the funding. The City is currently establishing a Citizens' Sales Tax Oversight Committee (CSTOC) to review future revenue and expenditure plans and present recommendations to the City Council.

Summary of 10-Year CIP Budget
As shown in Figure 2, the largest focus of the 10-Year CIP Budget will be related to Streets and Transportation.

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

Figure 2: 10-Year CIP Budget by Project Type
Next Steps
The proposed 10-Year CIP, 10-year Measure E-24, and Measure O-06 Local Sales Tax Funds expenditure plans are being provided for discussion and direction from the City Council on any requested changes. Following this direction, the 10-year CIP will be presented to the Planning Commission for confirmation that the plan conforms with the City’s General Plan. The updated CIP will then be included in the proposed FY2025-27

Item 11.c.

City Council
Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
May 13, 2025

Biennial Budget that is scheduled to be presented to Council for review on May 27, 2025, and for consideration and approval during a public hearing on June 10, 2025.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Adopt staff’s Recommendation; or

2. Provide other direction to staff.

ADVANTAGES:

Adopting the Resolution will assist staff in developing a 10-Year CIP plan, 10-Year Measure E-24, and Measure O-06 Sales Tax Fund Expenditure Program that is responsive to the City’s emergency and safety needs and to community priorities, while maintaining economic feasibility.

DISADVANTAGES:

There are no disadvantages to providing information for the community, City Council, or staff regarding the CIP, Measure O-06, and Measure E-24 Local Sales Tax Funds.

ENVIRONMENTAL REVIEW:

The development of the 10-Year CIP plan and 10-Year Measure E-24 and Measure O06 Sales Tax Fund Expenditure Program is not a project, as defined in the California Environmental Quality Act, and an environmental review is not required. Individual projects listed herein may be subject to CEQA and environmental reviews will be conducted at the appropriate time during implementation of those projects.

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

ATTACHMENTS:

1. Resolution including Exhibit A: 10-Year CIP FY 2025-26 through FY 2034-35

2. 10-Year Measure O-06 Sales Tax Fund Expenditure Program

3. 10-Year Measure E-24 Sales Tax Fund Expenditure Program

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE APPROVING THE CITY’S 10-YEAR

CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR
2025-26 THROUGH FISCAL YEAR 2034-35
WHEREAS, the 10-Year Capital Improvement Program (CIP) is an important financial planning process and document for the City of Arroyo Grande; and WHEREAS, the 10-Year CIP is updated biennially along with the City’s biennial budget process and is subject to change as the City’s needs become more defined and individual projects move along in their respective planning and budgeting processes; and WHEREAS, the 10-Year CIP is consistent with the FY 2025-26 and FY 2026-27 Budgets and the City’s General Plan, and includes all the various capital projects that staff has identified through a thorough development process; and
WHEREAS, City staff from all Departments put together lists of capital projects, their estimated cost, and an estimated funding source for each project based on certain criteria and objectives; and
WHEREAS, total Capital Improvement Program Expenditures for FY 2025-26 are $20,692,665; and
WHEREAS, total Capital Improvement Program Expenditures for FY 2026-27 are $12,762,600; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council of the City of Arroyo Grande hereby approves the City of Arroyo Grande 10-Year Capital Improvement Plan for FY 2025-26 and FY 2026-27 (Exhibit A).

SECTION 2. At the close of each Fiscal Year, unexpended appropriations in the Operating Budget will be carried forward to the next fiscal year as necessary to underwrite the expense of outstanding purchase commitments. Unexpended appropriations for authorized, but uncompleted projects as approved by the City Council may be carried forward to the next succeeding Budget upon recommendation by the Administrative Services Director and approval of the City Manager.

SECTION 3. Environmental. Find that the approval of the Resolution is statutorily exempt from the California Environmental Quality Act (CEQA) under State CEQA Guidelines, Section §15061(b)(3), as such approval does not have the potential to result in an effect on the environment. The approval does not commit the City to any of the identified projects in the CIP. Each individual project in the plan will be subject to CEQA review as

ATTACHMENT 1
required by law. Secondly, this action constitutes an organizational or administrative activity that will not result in a physical change in the environment and is therefore not subject to CEQA pursuant to Section §15378(b)(5).

On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:
the foregoing Resolution was passed and adopted this 13 th day of May, 2025.

ATTACHMENT 1
____

CAREN RAY RUSSOM, MAYOR
ATTEST:
________

JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_______________

MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
__

ISAAC ROSEN, CITY ATTORNEY

Exhibit A
Capital Improvement Program

OVERVIEW
This Capital Improvement Program (CIP) 10-Year plan outlines anticipated City infrastructure improvements for fiscal years (FY) 2025-26 through FY 2034-35 and serves as a public information document, approved by the City Council, to advise residents and property owners on how the City plans to address significant capital needs. It contains information about the scope, location and funding for these projects.

Each year, the overall goal for capital improvements and the means for accomplishing them are assessed. Every project in the plan has been considered for its financial feasibility, public safety, state and federal compliance, environmental impact, conformance to previously adopted plans, priorities established from the City Council, and ability to meet public needs.

The FY 2025-26 through FY 2034-35 CIP totals $138,128,065. It is a flexible plan that can be altered as conditions, funding, priorities and regulations change.

The Capital Improvement Program (CIP) represents a 10-Year scheduling plan of public infrastructure improvements and expansion, with many of it largely based on previously adopted master plans such as the Wastewater and Water Master Plans. The CIP is divided into nine categories – Bridges, Drainage, Parks & Play Structures, Public Facilities, Sewer, Sidewalks, Streets and Transportation, Technology, and Water.

The benefits of adopting a Capital Improvements Plan are that it:
 Preserves and improves the infrastructure of Arroyo Grande through capital asset construction, rehabilitation, and maintenance,
 Maximizes the useful life of capital investments by scheduling major renovations and modifications at the appropriate time in the life cycle of the facility;
 Improves coordination and scheduling of public improvements that require more than one year to complete,
 Provides an opportunity for long-range financial planning and management, and  Offers an opportunity for residents and the community to participate in decisions that impact their quality of life.

With growing demands for project expenditures and a limited amount of revenues available, it has become increasingly difficult to predict the availability of future funding for capital projects. As the population in Arroyo Grande continues to grow, so do the demands on City services. It is imperative that the City formulate and organize the use of our limited dollars wisely to complete this plan and ultimately benefit all citizens of Arroyo Grande.

CAPITAL PROJECT DEFINITION
Capital projects are typically projects that lead to the acquisition, construction, improvement, or extension of the useful life of capital assets. Capital assets include but are not limited to land, facilities, buildings, parks, playground equipment, streets, sidewalks, bridges, water, wastewater and storm drain infrastructure, technology systems

Exhibit A
Capital Improvement Program
and equipment, traffic control devices, and many other items that deliver a public benefit for a prolonged period of time.

Capital expenditures and operating expenditures are primarily differentiated by two characteristics: the dollar amount of the expenditure and the useful life of the asset acquired, constructed, or maintained. Capital expenditures typically enhance, acquire or extend the useful life of assets through a variety of activities. Activities that are associated with capital projects include: land acquisition, feasibility and design studies, planning, design, construction, rehabilitation, enterprise technology acquisition, and project Implementation. In general, capital projects in the CIP:
 Have a total project cost in the range of $25,000 or more,  Consist of construction, renovation, rehabilitation, conversion or demolition of infrastructure or facilities; and
 Have a minimum useful life of three years, significantly extend the useful life of a capital asset, or significantly alter the nature, character, or use of an asset.

PLANNING PROCESS
Public Works serves as the lead Department for developing the Adopted FY 2025-26 and FY 2026-27 CIP Program and Budget. Public Works, in conjunction with other Departments, reviewed the City’s capital needs and prioritized project submittals based on established criteria outlined below. Departments submit projects for funding consideration with a priority ranking, and the Public Works Department, Administrative Services Department, and City Manager review and evaluate submittals. Project submittals are also evaluated within the context of available funding limits to ensure that the limited resources available fund priority projects, while at the same time, maintain the City’s existing infrastructure and minimize future replacement costs. The following criteria are taken into consideration:
 The ability of the project to meet health, safety, and legal concerns and mandates,  The value of the project to prolong the life of City assets or avoid/minimize future repair costs,  The benefit the project will provide the community is in support of the goals articulated in the Council Goals,
 The potential for the project to generate savings or increase productivity, and  The extent to which the project will secure future funds through program planning or grant eligibility.

PROPOSED PLAN
The FY 2025-26 through FY 2034-35 CIP totals $138,128,065. The City completed 12 projects in the previous fiscal year. Completed projects no longer to be shown in the CIP, and New Projects, are listed below:

Completed projects:
 Public Safety Video Cameras (Phase 1)

Exhibit A
Capital Improvement Program
 Swinging Bridge Rehabilitation
 Lift Station 3 – upgraded piping protection
 Replacement of Emergency Back-up Generator at Fire Station 1  Phased Water Main Replacement – Highway 101 Crossing, El Camino Real to West Branch Street  Trenchless Sewer Rehabilitation -El Camino Real to West Branch St.  Fire Station 1 Apparatus Bay Doors
 191 Tally Ho - removal of bump out – Right of Way Acquisition, retaining wall and street repair  Public Works Office Space Remodel
 Galvanized Service Replacements – upgrade to PVC water service  2024 Streets Repairs – 5.2 miles of street repairs and 9 ADA curb ramp upgrades  Cornwall Waterline Replacement
New Projects in FY 2025-26:
 Traffic Way Bridge replacement habitat mitigation
 Watershed Management Plan and Stormwater Master Plan
 Soto Basin #2 Reservoir Liner Repair
 Replace Beach Volleyball Court at Rancho Grande Park
 Fire Station 1 HVAC Unit Replacement
 Fire Station 1 Front Lobby Security
 City Structures Roof Repairs (City Hall Roof, Balcony & Southern & Western Siding, Old City Hall, Council Chambers, Elm St. Restroom, PD, Women's Club, Fire)
 Old City Hall Building Repairs
 Facilities Safety/ADA Improvements
 Master Plan incl. ADA Access (Community Center, Elm St. Park, Soto Sports Complex, Don Roberts Field, Corp Yard) & Community Survey
 E. Grand (Halcyon to Elm) Economic Development Master Plan  Replacement of Traffic Guardrails
 Huasna Road, Corbett Canyon and E. Brach Street Intersection Roundabout  Public Safety Camera System - Phase 2
 Virtual Server Farm at City Hall and PD, and Nimble Network Storage  Update IT Firewall at City Hall
 Digital Community Bulletin Board Project
 Software for Public Safety Camera System to allow Traffic Count Data  Reservoir No. 5 Redundancy Water Interconnect (Los Ciervos to Andre Dr.)  Water Main and Service Replacement related to PMP Projects – underground water utility work that needs to be completed in advance of paving to reduce potential for the need to cut into brand-new pavement.

Exhibit A
Capital Improvement Program
These capital projects represent the vision for short- and long-range development, maintenance, improvement, and building of new infrastructure and facilities to benefit residents, businesses, property owners, City service operations, and visitors. Because the Plan addresses several years of projects, it will serve as a guidance document and must be adjustable to changes and therefore the capital projects included in the Plan are not guaranteed to be delivered. If priorities change, emergent needs arise, or funding sources evolve, capital projects may be added, modified in scope, or eliminated.

Table 1 depicts the proposed annual appropriations for the 10-Year period in each of the major project category, which are primarily major maintenance activities on City infrastructure. The largest categories of projects are for the Streets and Transportation, which includes the Pavement Management Program, followed by Water projects, including Water Main and Service Replacement and the Advanced Metering Infrastructure projects. This is followed by $10.7 million for bridge replacement projects, $9.1 million for public facilities, $5.8 million for Sewer projects, $5 million for sidewalks, $4.6 million for parks & play structures, $2.6 million for drainage, and $825,000 for technology projects. It should be noted that the types of projects are based on the best fit and may cover multiple project types.

Table 1 lists the types of projects and their total amounts by fiscal year for FY 2025-26 through FY 2034-35. Table 1 is followed by Chart 1 illustrating the types of projects over the entire 10-Year CIP.

Exhibit A
Capital Improvement Program
Table 1: FY 2025-26 through FY 2034-35 Capital Improvement Projects by Project Type Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total Bridge $ 6,522,159 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ - $ - $ - $ 3,900,000 $ 60,000 $ 10,682,159 Drainage 500,000 374,000 470,000 70,000 400,000 - 400,000 - 400,000 - 2,614,000 Parks & Play
Structures 225,000 580,000 40,000 - 100,000 910,000 500,000 800,000 800,000 600,000 4,555,000 Public Facilities 1,017,000 1,050,000 3,075,000 3,400,000 290,000 260,000 - - - - 9,092,000 Sewer - 332,000 864,400 250,000 950,000 129,000 600,000 1,554,000 - 1,100,000 5,779,400 Sidewalks 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 5,000,000 Streets and
Transportation 10,853,506 8,641,600 6,683,300 12,404,600 6,045,800 10,754,500 7,911,500 5,708,800 5,406,500 9,781,400 84,191,506 Technology 275,000 350,000 - - - - - 200,000 - - 825,000 Water 800,000 885,000 500,000 1,030,000 719,000 1,500,000 993,000 62,000 6,265,000 2,635,000 15,389,000 $ 20,692,665 $ 12,762,600 $ 12,182,700 $ 17,704,600 $ 9,054,800 $ 14,053,500 $ 10,904,500 $ 8,824,800 $ 17,271,500 $ 14,676,400 $ 138,128,065

Exhibit A
Capital Improvement Program
Chart 1: FY 2025-26 through FY 2034-35 Capital Improvement Projects by Project Type

Exhibit A
Capital Improvement Program
Capital projects will be scheduled throughout the 10-Year plan; only projects with activity scheduled during the first two year’s (FY 2025-26 and FY 2026-27) are adopted as part of the City’s Biennial Budget process. Projects slated for subsequent years may be adjusted to reflect changes in priority or funding. Preparation of the CIP is a result of considerable effort from staff in all departments in the City. Each year staff reassesses overall goals for capital improvements, and the means for accomplishing them.

FUNDING
All funding sources that may be used for various capital improvements are reviewed each year. Much of the work to develop the CIP focuses on the balancing of available resources with the identified capital needs. Consideration must be given to factors such as annual revenue projections from various sources, restrictions on the uses of certain funds, legal limitations on debt capacity, and City policies relative to project funding.

There are limited sources of funding available for capital improvements, some sources, such as Development Impact Fees (DIF), have restrictions on their use within broad categories, which are described below. For this reason, outside grants are a significant source of funding for capital projects and are typically needed to advance major capital investments.

Internal Sources
Measure O-2006 Sales Tax Fund (Fund 120): This fund accounts for the revenues derived from Measure O 2006 Sales Tax, a local 1/2% sales tax approved by the City's voters in November 2006.

Measure E-2024 Sales Tax Fund (Fund 140): This fund accounts for the revenues derived from Measure E 2024 Sales Tax, a local 1% sales tax approved by the City's voters in November 2024.

Senate Bill 1 (SB1) Fund (Fund 220): On April 28, 2017, the Governor signed SB1, known as the Road Repair and Accountability Act of 2017. SB1 increases gasoline taxes and vehicle registration fees to address deferred maintenance on the State highway system and the local street and road system. These additional taxes are deposited by the State Controller into the Road Maintenance and Rehabilitation Account (RMRA).

State COPS Block Grant Fund (Fund 271): This fund accounts for the receipt and use of monies from the State of California restricted to the purchase of police equipment and technology for crime prevention.

Sewer Fund (Fund 612): This fund is used to account for maintenance of sewer lines connecting City residents to the South San Luis Obispo County Sanitation District sewer treatment plant. Money is collected from utility bills paid by customers.

Water Fund (Fund 640): This fund is used to account for the activities associated with the transmission and distribution of potable water by the City to its users. Money is collected from utility bills paid by customers.

In-Lieu Parking Fee Fund (Fund 751): This fund accounts for revenue derived from in-lieu fees charged to businesses when using parking spaces within the Village parking lots.

Exhibit A
Capital Improvement Program
Development Impact Fee (DIF) Sources
Fire Facilities DIF (Fund 210): This fund accounts for impact fees collected from developers for the expansion of the existing fire station in order to serve future development.

Police Facilities DIF (Fund 212): This fund accounts for impact fees collected from developers for the expansion of the existing police facility in order to serve future development Park Facilities DIF (Fund 213): This fund accounts for the receipts of park-in-lieu fees (Quimby) and grant revenues that are used for construction, park acquisition, and development of park facilities.

Park Improvement DIF (Fund 214): Impact fees collected from developers for park improvements are to be used to maintain the adopted level of service for neighborhood and community parks of 4.0 acres per thousand population. This fund accounts for the receipt and use of these monies.

Recreation Facilities DIF (Fund 215): This fund accounts for impact fees collected from developers and used for recreation facilities in order to maintain the adopted level of service of recreation/community center facilities of 542 square feet per thousand population.

Traffic Signalization DIF (Fund 222): This fund accounts for traffic signalization assessment levied against developments for the future cost of traffic signals.

Transportation Facilities DIF (Fund 224): This fund accounts for transportation facilities fees paid to protect the public health, safety, and welfare by maintaining the existing level of public services for existing and future residents within the City.

Storm Drain Facilities DIF (Fund 231): This fund accounts for impact fees paid by development and are restricted to improving storm drains within the City.

Sewer Facility DIF (Fund 634): This fund is used to account for the accumulation of sewer facility revenues to be used in capital improvement projects in the City. Money is collected from development to offset the impacts new development has on the sewer collection system.

Water Facility DIF (Fund 642): This fund is used to account for the accumulation of water facility revenues to be used in capital improvement projects in the City. Money is collected from development to offset the impacts new development has on the water distribution system.

Other CIP Funding Sources
The City continues to aggressively seek grants for a wide variety of needs. While by their nature, these grants are only available for specific projects and purposes, and are often cyclical and competitive, they represent a significant addition to local funds. Grants are the most viable source to fund new improvements and allow internal funds to be kept available for existing assets. Internal funds are also necessary for leverage and matching fund requirements of grants.

Exhibit A
Capital Improvement Program
Arroyo Grande receives a significant amount of funding from outside sources. These include grants received from the Active Transportation Program (ATP), Community Development Block Grant (CDBG), Highway Bridge Program (HBP), Safe Routes to School (SR2S), and Safe Streets and Roads for All (SS4A). Outside grants fund a wide array of projects, including parks, recreational facilities, bicycle and pedestrian facility improvements, bridge reconstruction and retrofits, and transportation and safety projects. Staff continue to seek grants whenever projects are competitive and meet the City’s need to address unfunded priorities.

The FY 2025-26 through FY 2034-35 Capital Improvement Plan has 23 funding sources. The total estimated cost of all projects included in the 10-Year plan, is $138,128,065. A summary of the costs by funding source is summarized below. This table is followed by a pie chart illustrating the percentage of each funding source supporting the entire 10-Year CIP plan.

Exhibit A
Capital Improvement Program
Table 2: FY 2025-26 through FY 2034-35 Capital Improvement Projects by Funding Source Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total Active Transportation
Program (ATP) $ 3,200,500 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,200,500 Community Development
Block Grant (CDBG) 80,866 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 530,866 Fire Facilities DIF - - - 150,000 - - - - - - 150,000
Highway Bridge Program
(HBP) 5,673,679 44,265 44,265 44,265 44,265 - - - - - 5,850,739 In-Lieu Parking Fee - 144,000 - - - - - - - - 144,000
Measure E-24 Sales Tax 5,952,640 5,846,200 5,699,000 6,929,000 5,954,400 8,571,900 7,562,200 5,567,300 8,247,300 9,603,900 69,933,840 Measure O-06 Sales Tax 3,045,480 2,021,235 1,493,235 1,058,235 793,235 1,145,000 1,115,000 400,000 2,090,000 660,000 13,821,420 Other Gov Agencies - 150,000 2,250,000 2,250,000 - - - - - - 4,650,000 Park Improvement 20,000 50,000 - - - - - - - - 70,000
Park Facilities DIF - 310,000 - - - 100,000 - 600,000 - - 1,010,000 Police Facilities DIF - 25,000 25,000 - - - - - - - 50,000 Recreation Facilities DIF - - 15,000 15,000 - - - - - - 30,000 Safe Routes to School
(SR2S) - - - - - 2,000,000 - - - - 2,000,000
Safe Streets and Roads
for All (SS4A) - 200,000 640,000 5,400,000 - - - - - - 6,240,000 Senate Bill 1 (SB1) 481,000 495,400 510,300 525,600 541,400 557,600 574,300 591,500 609,200 627,500 5,513,800 Sewer Facility DIF - 138,744 432,200 - 475,000 - 300,000 - - 850,000 2,195,944 Sewer Fund - 193,256 432,200 250,000 475,000 129,000 300,000 1,554,000 - 250,000 3,583,456 State COPS Block Grant
Fund 200,000 125,000 - - - - - - - - 325,000
Storm Drain Facilities DIF - 12,500 7,500 2,500 2,500 - 10,000 - 10,000 - 45,000 Traffic Signalization DIF - - 84,000 - - - - - - - 84,000 Transportation Facilities
DIF 1,238,500 2,072,000 - - - - - - - - 3,310,500
Water Facility DIF 401,100 191,955 - 150,000 - - 744,800 - 292,500 - 1,780,355 Water Fund 398,900 693,045 500,000 880,000 719,000 1,500,000 248,200 62,000 5,972,500 2,635,000 13,608,645 Total $ 20,692,665 $ 12,762,600 $ 12,182,700 $ 17,704,600 $ 9,054,800 $ 14,053,500 $ 10,904,500 $ 8,824,800 $ 17,271,500 $ 14,676,400 $138,128,065

Exhibit A
Capital Improvement Program
Chart 2: FY 2025-26 through FY 2034-35 Capital Improvement Projects by Funding Source The following pages provide summary information for each project with proposed funding during the ten-year period, as well as an overall summary of all projects. The final section breaks down each fiscal years projects.

10-Year Summary by Project Type
Request Title Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total

BRIDGE PROJECTS
Bridge Street Bridge Habitat Mitigation4487 - HBP
48,628 - - - - - - - - - 48,628
Traffic Way Bridge Replacement 4487 - HBP 5,580,786 - - - - - - - - - 4950 - Measure O-2006 Sales Tax 792,745 - - - - - - - - - 4950 - Sales Tax - Outreach 50,000 - - - - - - - - - 6,423,531 Traffic Way Bridge replacement
habitat mitigation
4487 - HBP
44,265 44,265 44,265 44,265 44,265 - - - - -
4950 - Measure O-2006 Sales Tax
5,735 5,735 5,735 5,735 5,735 - - - - - 250,000 Mason Street Bridge 4960 - Measure E-2024 Sales Tax - - - - - - - - 3,000,000 - - 4950 - Measure O-2006 Sales Tax - - - - - - - - 900,000 - 3,900,000 Fair Oaks Bridge Coating 4950 - Measure O-2006 Sales Tax - - - - - - - - - 60,000 60,000 TOTAL BRIDGE PROJECTS 6,522,159 50,000 50,000 50,000 50,000 - - - 3,900,000 60,000 10,682,159 Request Title Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total DRAINAGE PROJECTS Watershed Management Plan and
Stormwater Master Plan
4950 - Measure O-2006 Sales Tax
500,000 - - - - - - - - - 500,000
Corrugated Metal Pipe (CMP)
Investigation and Repair
4950 - Measure O-2006 Sales Tax
- 290,000 397,500 - 397,500 - 390,000 - 390,000 -
4924 - Storm Drain Facilities DIF - 10,000 2,500 - 2,500 - 10,000 - 10,000 - 1,900,000 Trash Amendments Compliance 4950 - Measure O-2006 Sales Tax - 71,500 65,000 67,500 - - - - - -
4924 - Storm Drain Facilities DIF - 2,500 5,000 2,500 - - - - - - 214,000 TOTAL DRAINAGE PROJECTS 500,000 374,000 470,000 70,000 400,000 - 400,000 - 400,000 - 2,614,000 Request Title Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total

PARKS & PLAY STRUCTURES PROJECTS
Soto Basin #2 Reservoir Liner
Repair
4950 - Measure O-2006 Sales Tax
200,000 - - - - - - - - - 200,000
Replace Beach Volleyball Court at
Rancho Grande Park
4950 - Measure O-2006 Sales Tax
25,000 - - - - - - - - - 25,000
ADA Bathrooms Elm Street Park 4950 - Measure O-2006 Sales Tax - 175,000 - - - - - - - - - 4921 - Park Facilities DIF - 175,000 - - - - - - - - 350,000 Foot Bridge & Kiosk at Entrance of
James Way
Open Space
4914 - Park Improvement
- 50,000 - - - - - - - - 50,000
Short Street Plaza Design 4921 - Park Facilities DIF - 135,000 - - - - - 600,000 - - 4950 - Measure O-2006 Sales Tax - 45,000 - - - - - 200,000 - - 980,000 Rotary Bandstand (Termite
Treatment, Repairs, Camera)
4950 - Measure O-2006 Sales Tax
- - 40,000 - - - - - - - 40,000
Soto Sports Complex LED Lighting 4950 - Measure O-2006 Sales Tax - - - - 100,000 - - - - - 100,000 Don Roberts Scoring Shed at
Volunteer Field
4950 - Measure O-2006 Sales Tax - - - - - 10,000 - - - - 10,000 Rancho Grande Playground
Replacement
4950 - Measure O-2006 Sales Tax
- - - - - 800,000 - - - - 800,000
Pump Track/Skate Park 4921 - Park Facilities DIF - - - - - 100,000 - - - - 100,000 Strother Park Playground
Equipment Replacement (Small)
4950 - Measure O-2006 Sales Tax
- - - - - - 250,000 - - - 250,000
Oro Park Playground Equipment
Replacement
4950 - Measure O-2006 Sales Tax - - - - - - 250,000 - - - 250,000 Soto Sports Complex ADA Access
Trails, Circulation, Irrigation
4950 - Measure O-2006 Sales Tax
- - - - - - - - 800,000 - 800,000
Kiwanis Park ADA Access 4950 - Measure O-2006 Sales Tax - - - - - - - - - 350,000 350,000 Heritage Square Park Playground
Replacement
4950 - Measure O-2006 Sales Tax
- - - - - - - - - 250,000 250,000
TOTAL PARKS & PLAY STRUCTURES PROJECTS 225,000 580,000 40,000 - 100,000 910,000 500,000 800,000 800,000 600,000 4,555,000

10-Year Summary by Project Type
Request Title Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total

PUBLIC FACILITIES PROJECTS
Fire Station 1 HVAC Unit
Replacement
4950 - Measure O-2006 Sales Tax
100,000 - - - - - - - - - 100,000
Fire Station 1 Front Lobby Security 4950 - Measure O-2006 Sales Tax 22,000 - - - - - - - - - 22,000 City Structures Roof Repairs (City
Hall Roof, Balcony & Southern & Western Siding, Old City Hall, Council Chambers, Elm St.

Restroom, PD, Women's Club,
Fire)
4950 - Measure O-2006 Sales Tax
350,000 - - - - - - - - -
4914 - Park Improvement 20,000 - - - - - - - - - 370,000 Old City Hall Building Repairs 4950 - Measure O-2006 Sales Tax 100,000 - - - - - - - - - 100,000
ADA Improvements 4950 - Measure O-2006 Sales Tax
75,000 - - - - - - - - - 75,000
Safety Security 4950 - Measure O-2006 Sales Tax
25,000 - - - - - - - - - 25,000 Master Plan incl. ADA Access (Community Center, Elm St. Park,
Soto Sports Complex, Don Roberts
4950 - Measure O-2006 Sales Tax
275,000 - - - - - - - - - 275,000
EV Infrastructure Master Plan 4499 - Other Gov Agencies - 150,000 - - - - - - - - 150,000 City Facility Access Control
Upgrades (PW, Parks, Chambers,
Fire, PD)
4950 - Measure O-2006 Sales Tax
- 100,000 - - - - - - - - 100,000
City Council Chambers Remodel 4950 - Measure O-2006 Sales Tax 50,000 200,000 - - - - - - - - 250,000
Recreation Services / Community
Center Building
4950 - Measure O-2006 Sales Tax
- 600,000 735,000 735,000 - - - - - -
4906 - Recreation Facilities DIF - - 15,000 15,000 - - - - - - 4499 - Other Gov Agencies - - 2,250,000 2,250,000 - - - - - - 6,600,000 Property and Evidence Storage
System Upgrade
4955 - Police Facilities DIF - - 25,000 - - - - - - - 25,000 City Hall Remodel of Work Spaces
and Security Glass
4950 - Measure O-2006 Sales Tax
- - 50,000 100,000 100,000 - - - - - 250,000
Fire Station 1 Expansion &
Reconfiguration of the Sleeping
Quarters
4950 - Measure O-2006 Sales Tax
- - - 150,000 - - - - - -
4912 - Fire Facilities DIF - - - 150,000 - - - - - - 300,000 Police Station Security Fencing 4950 - Measure O-2006 Sales Tax - - - - 40,000 - - - - - 40,000
City Facility Flooring (Fire Station 1,
City Hall, Corp Yard, PD)
4950 - Measure O-2006 Sales Tax
- - - - 150,000 - - - - - 150,000
Corporation Yard Renovations 4950 - Measure O-2006 Sales Tax - - - - - 260,000 - - - - 260,000 TOTAL PUBLIC FACILITIES PROJECTS 1,017,000 1,050,000 3,075,000 3,400,000 290,000 260,000 - - - - 9,092,000 Request Title Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total

SEWER PROJECTS
Trenchless Sewer Rehabilitation -
Pilgrim Way, Orchard Avenue, West Cherry Avenue and California Street
4930 - Sewer Fund
- 143,256 - - - - - - - -
4931 - Sewer Facility - 138,744 - - - - - - - - 282,000 Lift Station #3 - Creek Bank
Analysis and Generator
w/Automatic Switchover
4930 - Sewer Fund
- 50,000 - - - 129,000 - - - - 179,000
Trenchless Sewer Rehabilitation -
Alder and Cameron Court to
4930 - Sewer Fund
- - 432,200 - - - - - - -
4931 - Sewer Facility - - 432,200 - - - - - - - 864,400 Maintenance Hole Rehabilitation 4930 - Sewer Fund - - - 250,000 - - - - - 250,000 500,000 Trenchless Sewer Rehabilitation -
Beech & Alder backyard
easements
4930 - Sewer Fund
- - - - 475,000 - - - - -
4931 - Sewer Facility - - - - 475,000 - - - - - 950,000 Trenchless Sewer Rehabilitation -
Hillcrest/Sierra backyard
easements
4930 - Sewer Fund
- - - - - - 300,000 - - -
4931 - Sewer Facility - - - - - - 300,000 - - - 600,000 Clay Pipe CCTV Inspection 4930 - Sewer Fund - - - - - - - 1,554,000 - - 1,554,000 Huasna Road Sewer Upgrade 4931 - Sewer Facility - - - - - - - - - 850,000 850,000 TOTAL SEWER PROJECTS - 332,000 864,400 250,000 950,000 129,000 600,000 1,554,000 - 1,100,000 5,779,400

10-Year Summary by Project Type
Request Title Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total

SIDEWALK PROJECTS
Sidewalk Repairs and
Improvements
4960 - Measure E-2024 Sales Tax
500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 5,000,000 TOTAL SIDEWALK PROJECTS 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 5,000,000 Request Title Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total

STREETS & TRANSPORTATION PROJECTS
Pavement Management Program 4920 - SB1 481,000 495,400 510,300 525,600 541,400 557,600 574,300 591,500 609,200 627,500 4960 - Measure E-2024 Sales Tax 3,577,640 5,296,200 5,039,000 4,629,000 4,854,400 4,871,900 5,062,200 5,067,300 4,747,300 9,103,900 4463 - CDBG 80,866 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 58,293,506 Halcyon Road Complete Streets 4960 - Measure E-2024 Sales Tax 1,875,000 - - - - - - - - - 4926 - Transportation Facilities DIF
788,500 - - - - - - - - -
4423 - Active Transportation
Program (ATP) 3,200,500 - - - - - - - - - 5,864,000
E. Grand (Halcyon to Elm)
Economic Development Master
Plan
4950 - Measure O-2006 Sales Tax
250,000 - - - - - - - - - 250,000
Replacement of Traffic Guardrails 4950 - Measure O-2006 Sales Tax 200,000 - 200,000 - - - - - - - 400,000 Le Point Street Parking Lot
Expansion
4950 - Measure O-2006 Sales Tax - 6,000 - - - - - - - - 49XX - In-Lieu Parking Fee - 144,000 - - - - - - - - 150,000 Traffic Way Corridor Plan 4926 - Transportation Facilities DIF - 472,000 - - - - - - - - 4950 - Measure O-2006 Sales Tax - 328,000 - - - - - - - - 800,000 Huasna Road, Corbett Canyon, and
E. Branch Street Intersection
Roundabout
4926 - Transportation Facilities DIF
400,000 1,600,000 - - - - - - - - 2,000,000
East Grand Streetscape Planning
and Construction
44XX - Safe Streets for All
- 200,000 640,000 5,400,000 - - - - - -
4960 - Measure E-2024 Sales Tax - 50,000 160,000 1,800,000 - - - - - - 4950 - Measure O-2006 Sales Tax - - - - - - - - - - 8,250,000 Opt-com preemptive devices on
traffic signals within City Limits
4922 - Traffic Signalization
- - 84,000 - - - - - - - 84,000
Branch Mill Road Slope
Stabilization
4960 - Measure E-2024 Sales Tax
- - - - 600,000 3,000,000 - - - - 3,600,000
Fair Oaks Ave Active
Transportation Improvements,
Valley Road to Traffic Way
4950 - Measure O-2006 Sales Tax
- - - - - 75,000 225,000 - - - 300,000
Harden Street Slope Stabilization 4960 - Measure E-2024 Sales Tax - - - - - 200,000 - - - - 200,000 Safe Routes to School - Newport
Slope Stabilization
44XX - SR2S
- - - - - 2,000,000 - - - - 2,000,000
Connectivity from Branch (Coach) 4960 - Measure E-2024 Sales Tax - - - - - - 2,000,000 - - - 2,000,000 TOTAL STREETS & TRANSPORTATION PROJECTS 10,853,506 8,641,600 6,683,300 12,404,600 6,045,800 10,754,500 7,911,500 5,708,800 5,406,500 9,781,400 84,191,506 Request Title Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total

TECHNOLOGY PROJECTS
Public Safety Camera System -
Phase 2
4929 - COPS
200,000 - - - - - - - - - 200,000
Digital Community Bulletin Board
Project
4950 - Measure O-2006 Sales Tax
25,000 - - - - - - - - - 25,000
Software for Public Safety Camera
System to allow Traffic Counts
4926 - Transportation Facilities DIF
50,000 - - - - - - - - - 50,000
Virtual Server Farm at City Hall and
PD, and Nimble Network Storage
4950 - Measure O-2006 Sales Tax
- 160,000 - - - - - - - - 160,000
Firewall at City Hall 4950 - Measure O-2006 Sales Tax 40,000 - - - - - - - 40,000 Report Management System
(RMS) Upgrade at PD
4929 - COPS
- 125,000 - - - - - - - -
4955 - Police Facilities DIF - 25,000 - - - - - - - - 150,000 Generator at City Hall 4950 - Measure O-2006 Sales Tax - - - - - - - 200,000 - - 200,000 TOTAL TECHNOLOGY PROJECTS 275,000 350,000 - - - - - 200,000 - - 825,000

10-Year Summary by Project Type
Request Title Funding Source FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10 Year Total Water Well #11 Facilities 4943 - Water Availability - - - - - - - - - - Reservoir No. 5 Redundancy
Interconnect (Los Ciervos to Andre
Dr.)
4940 - Water Fund
100,000 - - - - - - - - - 100,000 Water Main and Service Replacement related to PMP
4940 - Water Fund 298,900 - - - - - - - - -
4942 - Water Facility
401,100 - - - - - - - - - 700,000
Phased Main Replacement -
Highway 101 Crossing Upgrade, El
Camino Real to West Branch
Street
4940 - Water Fund
- 143,045 - - - - - - - -
4942 - Water Facility - 191,955 335,000
Reservoir No. 4 Exterior Coating 4940 - Water Fund
- 550,000 - - - - - - - - 550,000
Reservoir No. 5 Booster Modification &4940 - Water Fund - - 500,000 - - - - - - - 500,000 Miller Way Booster Zone Upgrade 4940 - Water Fund - - - 150,000 - - - - - - 4942 - Water Facility - - - 150,000 - - - - - - 300,000 Reservoir No. 5 Cleaning and
Interior Coating
4940 - Water Fund
- - - 730,000 - - - - - - 730,000
Alpine Crossing, Bennett and Bell Mains and Services4940 - Water Fund - - - - 719,000 - - - - - 719,000 AMI - Advanced Metering
Infrastructure
4940 - Water Fund - - - - - 1,500,000 - - - - 1,500,000 Lierly Lane to Coach Road Upgrade 4940 - Water Fund - - - - - - 105,000 - - - 4942 - Water Facility - - - - - - 315,000 - - - 420,000 Phased Main Replacement -
Highway 101 Crossing Upgrade, West Cherry Avenue
4940 - Water Fund
- - - - - - 143,200 - - -
4942 - Water Facility - - - - - - 429,800 - - - 573,000 Security Cameras 4940 - Water Fund - - - - - - - 62,000 - - 62,000 Coach Road and Greenwood Drive
Upgrades
4940 - Water Fund
- - - - - - - - 97,500 -
4942 - Water Facility - - - - - - - - 292,500 - 390,000 4" Mains Upgrades 4940 - Water Fund - - - - - - - - 5,875,000 - 5,875,000 Well #1 Replacement 4940 - Water Fund - - - - - - - - - 2,635,000 2,635,000 TOTAL WATER PROJECTS 800,000 885,000 500,000 1,030,000 719,000 1,500,000 993,000 62,000 6,265,000 2,635,000 15,389,000 Grand Total, All Capital Projects 20,692,665 12,762,600 12,182,700 17,704,600 9,054,800 14,053,500 10,904,500 8,824,800 17,271,500 14,676,400 138,128,065

Projects Budgeted FY 2025-26
Project
Number Category Request Title Description of Improvement Funding Source FY 2025-26 350-5614 Bridge Bridge Street Bridge Habitat
Mitigation
Five year post-construction
environmental mitigation and
monitoring for the Bridge Street
Bridge Rehabilitation project.
4487 - HBP
48,628
4487 - HBP 5,580,786
4950 - Measure O-2006 Sales Tax 792,745
4950 - Sales Tax - Outreach 50,000
4487 - HBP
44,265
4950 - Measure O-2006 Sales Tax
5,735
350-57XX Drainage Watershed Management Plan and
Stormwater Master Plan
SW Master Plan evaluates
infrastructure & practices of SW
system for current & future needs;
Watershed Mgmt. Plan assesses a
watershed including water quality,
flood risk, protecting water bodies,
etc. Documents to be concurrent.
4950 - Measure O-2006 Sales Tax
500,000
350-57XX Parks & Play
Structures
Soto Basin #2 Reservoir Liner
Repair
There is a hole in the liner of
Drainage Basin #2 at Soto Park
requiring repair.
4950 - Measure O-2006 Sales Tax
200,000
350-55XX Parks & Play
Structures
Replace Beach Volleyball Court at
Rancho Grande Park
Existing sand needs to be removed
and replaced with appropriate sand
for regulation sand volleyball. Net to
be replaced.
4950 - Measure O-2006 Sales Tax
25,000
350-54XX Public Facilities Fire Station 1 HVAC Unit
Replacement
Replace HVAC at Fire Station 1. 4950 - Measure O-2006 Sales Tax 100,000
350-54XX Public Facilities Fire Station 1 Front Lobby Security Add Security inside the Front Lobby of Fire Station 1.
4950 - Measure O-2006 Sales Tax
22,000
4950 - Measure O-2006 Sales Tax
350,000
4914 - Park Improvement
20,000
350-54XX Public Facilities Old City Hall Building Repairs Complete repairs to Old City Hall based on building report
assessment.
4950 - Measure O-2006 Sales Tax
100,000
350-5679
350-57XX
Design and construction to replace
the three lane bridge constructed in
1932 over Arroyo Grande Creek.

Five year post-construction
environmental mitigation and
monitoring for the Traffic Way
Bridge Rehabilitation project.

Traffic Way Bridge replacement
habitat mitigation
Bridge
Bridge Traffic Way Bridge Replacement
Evaluate and repair City building
roofs, and repair of balcony and
southern/western siding at City
Hall.

City Structures Roof Repairs (City
Hall, Balcony & Southern &
Western Siding, Old City Hall,
Council Chambers, PD, Women's
Club, Fire Station 1)
350-54XX Public Facilities

Projects Budgeted FY 2025-26
Project
Number Category Request Title Description of Improvement Funding Source FY 2025-26 350-54XX Public Facilities ADA Improvements Items identified as part of the ADA Tranisition Plan, such as signs and
accessability adjustments
4950 - Measure O-2006 Sales Tax
75,000
350-54XX Public Facilities Safety Improvements Improvements identified through the Risk Management Evaluation and
the Workplace Violence Prevention
Plan site inventories.
4950 - Measure O-2006 Sales Tax
25,000
350-54XX Public Facilities City Council Chambers Remodel City Hall update including chairs, caucus room, Council dais, update
the front to ramps only, update the
clock on the building front.
4950 - Measure O-2006 Sales Tax
50,000
350-55XX Public Facilities Master Plan incl. ADA Access (Community Center, Elm St. Park,
Soto Sports Complex, Don Roberts
Field, Corp Yard) & Community
Survey
Master Plan for Elm St., Soto
Sports Complex, Don Roberts
Field, and the City Corporation Yard
to address connectivity, best use,
restroom locations, year-round field
use, and community survey for
community center project.
4950 - Measure O-2006 Sales Tax
275,000
350-5658 Sidewalks Sidewalk Repairs and
Improvements
Annual funding allocated towards
sidewalk improvements and repairs
throughout the City.
4960 - Measure E-2024 Sales Tax
500,000
4920 - SB1
481,000
4960 - Measure E-2024 Sales Tax
3,577,640
4463 - CDBG
80,866
Streets &
Transportation
350-5638 The City’s Pavement Management
Program provides maintenance
history and pavement condition
index (PCI) for all public streets in
Arroyo Grande. The City annually
performs pavement maintenance
on public streets to the extent that
funds are available. Streets are
selected based on pavement
condition, location, and the type of
maintenance application.

Maintenance applications are
digouts, slurry seals, chip seals,
and pavement overlays.

Pavement Management Program Page 480 of 504
Projects Budgeted FY 2025-26
Project
Number Category Request Title Description of Improvement Funding Source FY 2025-26 4960 - Measure E-2024 Sales Tax
1,875,000
4926 - Transportation Facilities DIF
788,500
4423 - Active Transportation
Program (ATP)
3,200,500
350-54XX Streets and
Transportation
E. Grand (Halcyon to Elm)
Economic Development Master
Plan
Develop a comprehensive corridor
plan that considers the needs and
goals of multimodal users,
residents, businesses, and City
leaders for East Grand Avenue with
a focus on the section from
Halcyon Road to Elm Street.

Objectives include economic
enhancement and vitality, safety,
providing distinct
nodes/gateways/districts,
functionality, and beautification.
4950 - Measure O-2006 Sales Tax
250,000
350-56XX Streets &
Transportation
Replacement of Traffic Guardrails Replacement of damaged guardrails.
4950 - Measure O-2006 Sales Tax
200,000
350-56XX Streets &
Transportation
Huasna Road, Corbett Canyon, and
E. Branch Street Intersection
Roundabout
One of the major circulation
improvements identified in the
Circulation Element was on East
Branch Street at Huasna
Road/Corbett Canyon Road adding
a new roundabout to help improve
the flow of traffic.
4926 - Transportation Facilities DIF
400,000
The project consists of Complete
Streets improvements along 1.7
Miles of Halcyon Road from US 101
to The Pike. The project narrow
vehicle driving lanes, add buffered
bike lanes with green conflict
striping, fill in sidewalk gaps, add
two-staged crossings with stop
control at key intersections, and
install a new signal or roundabout
at Fair Oaks Avenue. A safety
education program will be part of
the project to inform residents of
the benefits and proper use of
roundabouts.

Streets & Halcyon Road Complete Streets
Transportation
350-5606

Projects Budgeted FY 2025-26
Project
Number Category Request Title Description of Improvement Funding Source FY 2025-26 350-5468 Technology Public Safety Camera System -
Phase 2
Replace failed public safety video
system with a local vender in order
to monitor City buildings and
identified intersections.
4929 - COPS
200,000
350-54XX Technology Digital Community Bulletin Board
Project
This project is to replace the
current outdated and deteriorating
physical community bulletin board
located outside City Hall with a
modern, digital bulletin board that
allows for more dynamic,
accessible, and user-friendly
communication for community
members.
4950 - Measure O-2006 Sales Tax
25,000
350-56XX Technology Software for Public Safety Camera
System to allow Traffic Counts
Software to obtain traffic counts
from the Public Safety Video
Cameras.
4926 - Transportation Facilities DIF
50,000
640-59XX Water Reservoir No. 5 Redundancy
Interconnect (Los Ciervos to Andre
Dr.)
The water distribution system for
Reservoir No. 5 pressure zone has
only one watermain that can
provide water to the pressure zone.

This project will provide a
redundant interconnect to assure
the zone has water delivery from
Reservoir No. 5 with the watermain
off. The project will interconnect the
watermain from Los Ciervos
to Andre Drive.
4940 - Water Fund
100,000
4940 - Water Fund
298,900
4942 - Water Facility
401,100
Total FY 2025-26 Projects 20,692,665
Underground water utility work that
will be completed in advance of
paving to reduce the potential need
to cut into brand-new pavement.

Water Main and Service
Replacement related to PMP
Projects
640-59XX Water

Projects Budgeted FY 2026-27
Project
Number Category Request Title Description of Improvement Funding Source FY 2026-27 4487 - HBP
44,265
4950 - Measure O-2006 Sales Tax
5,735
4950 - Measure O-2006 Sales Tax
290,000
4924 - Storm Drain Facilities DIF 10,000
4950 - Measure O-2006 Sales Tax 71,500
4924 - Storm Drain Facilities DIF
2,500
4950 - Measure O-2006 Sales Tax
175,000
4921 - Park Facilities DIF
175,000
350-55XX Parks & Play
Structures
Foot Bridge & Kiosk at Entrance of
James Way
Open Space
The entrance to James Way Trail
(near windmill) east of Stevenson
Dr. becomes unpassable during
rain. Users have placed stones and
debris to make their own crossing.

Proposal to build footbridge over
the area which floods and install
new kiosk.
4914 - Park Improvement
50,000
4921 - Park Facilities DIF
135,000
4950 - Measure O-2006 Sales Tax
45,000
350-54XX Public Facilities EV Infrastructure Master Plan The Advanced Clean Fleets Regulation requires 50% of new
City Vehicles purchased after
January 1, 2024, to be lowemission, and 100% after January 1, 2027. Before purchasing EVs, a
Plan is needed to evaluate the City
needs, charging infrastructure, and
utility transformer upgrades.
4499 - Other Gov Agencies
150,000
Compliance as mandated by the
MS4 Stormwater Permit required
by the State.
350-5798 Drainage Trash Amendments Compliance
Develop Short Street into a vibrant
pedestrian-friendly plaza including,
dining areas, vendor spaces and an
amphitheater park area. The
development will permanently close
Short Street to traffic.
350-5430 Parks & Play
Structures
Short Street Plaza Design
350-5568 Parks & Play
Structures
ADA Bathrooms Elm Street Park Restroom facility to replace porta potties in use after demolition of
Mark M. Millis Community Center.
350-57XX Bridge
Annual project to repair
deteriorating corrugated metal
pipes (CMP) throughout the City.
350-5794 Drainage Corrugated Metal Pipe (CMP)
Investigation and Repair
Five year post-construction
environmental mitigation and
monitoring for the Traffic Way
Bridge Rehabilitation project.

Traffic Way Bridge replacement
habitat mitigation

Projects Budgeted FY 2026-27
Project
Number Category Request Title Description of Improvement Funding Source FY 2026-27 350-54XX Public Facilities City Facility Access Control Upgrades (PW, Parks, Chambers,
Fire, PD)
Card readers and authentication
program at City facilities to be
retrofitted or replaced to install card
readers.
4950 - Measure O-2006 Sales Tax
100,000
350-54XX Public Facilities City Council Chambers Remodel City Hall update including chairs, caucus room, Council dais, update
the front to ramps only, update the
clock on the building front.
4950 - Measure O-2006 Sales Tax
200,000
350-5556 Public Facilities Recreation Services / Community Center Building
Conceptual study that presents
design alternatives and cost
analysis, and then preparation of
construction documents for a new
Recreation Services/Community
Center building. Includes ADA
bathroom design and construction.
4950 - Measure O-2006 Sales Tax
600,000
4930 - Sewer Fund
143,256
4931 - Sewer Facility
138,744
612-58XX Sewer Lift Station #3 - Creek Bank
Analysis and Generator
w/Automatic Switchover
Emergency backup power to
prevent sanitary sewer overflow if
the portable generator is not
available during an outage.

Evaluation and repair of creek bank
erosion .
4930 - Sewer Fund
50,000
350-5658 Sidewalks Sidewalk Repairs and
Improvements
Annual funding allocated towards
sidewalk improvements and repairs
throughout the City
4960 - Measure E-2024 Sales Tax
500,000
Cured-in-place pipe rehabilitation
along the entire length of the
sections mentioned below to
reduce infiltration, root intrusion,
and maintenance requirements, as
well as probability of failure.

Sewer Trenchless Sewer Rehabilitation -
Pilgrim Way, Orchard Avenue,
West Cherry Avenue and California
Street
612-58XX Page 484 of 504
Projects Budgeted FY 2026-27
Project
Number Category Request Title Description of Improvement Funding Source FY 2026-27 4920 - SB1
495,400
4960 - Measure E-2024 Sales Tax
5,296,200
4463 - CDBG
50,000
4950 - Measure O-2006 Sales Tax
6,000
49XX - In-Lieu Parking Fee
144,000
4926 - Transportation Facilities DIF
472,000
4950 - Measure O-2006 Sales Tax
328,000
350-56XX Streets &
Transportation
Huasna Road, Corbett Canyon, and
E. Branch Street Intersection
Roundabout
One of the major circulation
improvements identified in the
Circulation Element was on East
Branch Street at Huasna
Road/Corbett Canyon Road adding
a new roundabout to help improve
the flow of traffic.
4926 - Transportation Facilities DIF
1,600,000
Streets &
Transportation
350-56XX Traffic Way Corridor Plan Planning document to evaluate traffic circulation improvement
opportunities for Traffic Way and
adjacent streets.

Pavement Management Program The City’s Pavement Management Program provides maintenance
history and pavement condition
index (PCI) for all public streets in
Arroyo Grande. The City annually
performs pavement maintenance
on public streets to the extent that
funds are available. Streets are
selected based on pavement
condition, location, and the type of
maintenance application.

Maintenance applications are
digouts, slurry seals, chip seals,
and pavement overlays.
350-5638 Streets &
Transportation
The life of the existing structure as
a safe residence is at its end. A
historical and archeological
analysis will be completed in
anticipation of demolition and
regrading/repaving of the site to
allow for the design and
construction of approximately 15
additional parking spaces.

Le Point Street Parking Lot
Expansion
Streets and
Transportation
350-5422

Projects Budgeted FY 2026-27
Project
Number Category Request Title Description of Improvement Funding Source FY 2026-27 44XX - Safe Streets for All 200,000
4960 - Measure E-2024 Sales Tax 50,000
350-54XX Technology Virtual Server Farm at City Hall and PD, and Nimble Network Storage
Update the existing Virtual Server's
that the City uses for storage at
City Hall and the Police Station.
4950 - Measure O-2006 Sales Tax
160,000
350-54XX Technology Firewall at City Hall Update the Firewall located at City Hall.
4950 - Measure O-2006 Sales Tax
40,000
4929 - COPS
125,000
4955 - Police Facilities DIF
25,000
4940 - Water Fund
143,045
4942 - Water Facility
191,955
640-5948 Water Reservoir No. 4 Exterior Coating Sand blast, prime and re-coat Reservoir No. 4 exterior. The tank
was built in 1983 and has never
been painted since it was originally
built.
4940 - Water Fund
550,000
Total FY 2026-27 Projects 12,762,600
Streets &
Transportation
350-56XX East Grand Streetscape Planning
and Construction
Planning phase of the East Grand
Streetscape project.
350-5470
640-5973 Water
Technology Report Management System
(RMS) Upgrade at PD
Phased Main Replacement -
Highway 101 Crossing Upgrade, El
Camino Real to West Branch
Street
Upgrade the existing 8-inch cast
iron pipe to an 8-inch high density
polyethylene (HDPE) pipe under
Highway 101 from El Camino Real
to West Branch Street.

Upgrade the Police Department
report writing system to Pro
Phoenix to coincide with the San
Luis Obispo Sherriff’s Department
upgrade.

Projects Budgeted FY 2027-28
Project
Number Category Request Title Description of Improvement Funding Source FY 2027-28 4487 - HBP
44,265
4950 - Measure O-2006 Sales Tax
5,735
4950 - Measure O-2006 Sales Tax
397,500
4924 - Storm Drain Facilities DIF
2,500
4950 - Measure O-2006 Sales Tax
65,000
4924 - Storm Drain Facilities DIF 5,000
350-55XX Parks & Play
Structures
Rotary Bandstand (Termite
Treatment, Repairs, Camera)
Termite treatment, repairs to
damaged columns, addition of a
new camera.
4950 - Measure O-2006 Sales Tax
40,000
4950 - Measure O-2006 Sales Tax
735,000
4906 - Recreation Facilities DIF
15,000
4499 - Other Gov Agencies
2,250,000
350-54XX Public Facilities Property and Evidence Storage System Upgrade
Upgrade current property and
evidence storage system with
custom storage compartments and
electronic organization system.
4955 - Police Facilities DIF
25,000
350-54XX Public Facilities City Hall Remodel of Work Spaces and Security Glass
Design to update the City Hall
workspaces for better use of
space, update the counters,
security glass, and safety.
4950 - Measure O-2006 Sales Tax
50,000
4930 - Sewer Fund
432,200
4931 - Sewer Facility
432,200
350-5658 Sidewalks Sidewalk Repairs and
Improvements
Annual funding allocated towards
sidewalk improvements and repairs
throughout the City.
4960 - Measure E-2024 Sales Tax
500,000
Recreation Services / Community
Center Building
Conceptual study that presents
design alternatives and cost
analysis, and then preparation of
construction documents for a new
Recreation Services/Community
Center building. Includes ADA
bathroom design and construction.
350-5556 Public Facilities
Bridge
Compliance as mandated by the
MS4 Stormwater Permit required
by the State.

Five year post-construction
environmental mitigation and
monitoring for the Traffic Way
Bridge Rehabilitation project.

Annual project to repair
deteriorating corrugated metal
pipes (CMP) throughout the City.
350-5798 Drainage Trash Amendments Compliance
Corrugated Metal Pipe (CMP)
Investigation and Repair
350-5794 Drainage
Traffic Way Bridge replacement
habitat mitigation
350-57XX
Cured-in-place pipe rehabilitation
along the entire length of the
sections mentioned below to
reduce infiltration, root intrusion,
and maintenance requirements, as
well as probability of failure.

Trenchless Sewer Rehabilitation -
Alder and Cameron Court to
Victorian Way, and Woodland
612-5826 Sewer

Projects Budgeted FY 2027-28
Project
Number Category Request Title Description of Improvement Funding Source FY 2027-28 4920 - SB1
510,300
4960 - Measure E-2024 Sales Tax
5,039,000
4463 - CDBG
50,000
350-56XX Streets &
Transportation
Replacement of Traffic Guardrails Replacement of damaged guardrails.
4950 - Measure O-2006 Sales Tax
200,000
44XX - Safe Streets for All 640,000
4960 - Measure E-2024 Sales Tax 160,000
350-54XX Streets and
Transportation
Opt-com preemptive devices on
traffic signals within City Limits
Adding opt-com pre-emptive
devices on traffic signals within City
limits.
4922 - Traffic Signalization
84,000
640-59XX Water Reservoir No. 5 Booster
Modification &
Temporary Storage (Rancho
Grande)
Improvements to Rancho Grande
Pump station to increase long term
reliability and reduce temporary
storage required to provide water
supply with Reservoir 5 offline
which will occur for Reservoir 5
Cleaning and Interior Coating.
4940 - Water Fund
500,000
Total FY 2027-28 Projects 12,182,700
350-56XX Streets &
Transportation
East Grand Streetscape Planning
and Construction
Design phase of the East Grand
Streetscape project.

Streets & Pavement Management Program
Transportation
350-5638 The City’s Pavement Management
Program provides maintenance
history and pavement condition
index (PCI) for all public streets in
Arroyo Grande. The City annually
performs pavement maintenance
on public streets to the extent that
funds are available. Streets are
selected based on pavement
condition, location, and the type of
maintenance application.

Maintenance applications are
digouts, slurry seals, chip seals,
and pavement overlays.

Projects Budgeted FY 2028-29
Project
Number Category Request Title Description of Improvement Funding Source FY 2028-29 4487 - HBP
44,265
4950 - Measure O-2006 Sales Tax
5,735
4950 - Measure O-2006 Sales Tax 67,500
4924 - Storm Drain Facilities DIF 2,500
4950 - Measure O-2006 Sales Tax
735,000
4906 - Recreation Facilities DIF
15,000
4499 - Other Gov Agencies
2,250,000
350-54XX Public Facilities City Hall Remodel of Work Spaces, Security Glass, Safety
Update the City Hall workspaces for
better use of space, update the
counters, security glass, and
safety.
4950 - Measure O-2006 Sales Tax
100,000
4950 - Measure O-2006 Sales Tax 150,000
4912 - Fire Facilities DIF
150,000
612-5849 Sewer Maintenance Hole Rehabilitation Rehabilitate existing sanitary sewer manholes with an epoxy liner.
4930 - Sewer Fund
250,000
350-5658 Sidewalks Sidewalk Repairs and
Improvements
Annual funding allocated towards
sidewalk improvements and repairs
throughout the City.
4960 - Measure E-2024 Sales Tax
500,000
Five year post-construction
environmental mitigation and
monitoring for the Traffic Way
Bridge Rehabilitation project.

Traffic Way Bridge replacement
habitat mitigation
350-57XX Bridge
350-5798 Drainage Trash Amendments Compliance
350-5556 Public Facilities Recreation Services / Community Center Building
Conceptual study that presents
design alternatives and cost
analysis, and then preparation of
construction documents for a new
Recreation Services/Community
Center building. Includes ADA
bathroom design and construction.

Divide existing large bedrooms to
create dorm rooms and office
space.

Compliance as mandated by the
MS4 Stormwater Permit required
by the State.
350-54XX Public Facilities Fire Station 1 Expansion &
Reconfiguration of the Sleeping
Quarters

Projects Budgeted FY 2028-29
Project
Number Category Request Title Description of Improvement Funding Source FY 2028-29 4920 - SB1
525,600
4960 - Measure E-2024 Sales Tax
4,629,000
4463 - CDBG
50,000
44XX - Safe Streets for All 5,400,000
4960 - Measure E-2024 Sales Tax 1,800,000
4940 - Water Fund
150,000
4942 - Water Facility
150,000
640-59XX Water Reservoir No. 5 Cleaning and
Interior Coating
Interior coating is showing signs of
failing and must be recoated to
preserve the steel tank and protect
water quality. The inspection in
2003 indicated it had a useful life of
5 years which has elapsed.
4940 - Water Fund
730,000
Total FY 2028-29 Projects 17,704,600
640-59XX Water Miller Way Booster Zone Upgrade
East Grand Streetscape Planning
and Construction
Construction phase of the East
Grand Streetscape project.

Streets &
Transportation
350-56XX
The City’s Pavement Management
Program provides maintenance
history and pavement condition
index (PCI) for all public streets in
Arroyo Grande. The City annually
performs pavement maintenance
on public streets to the extent that
funds are available. Streets are
selected based on pavement
condition, location, and the type of
maintenance application.

Maintenance applications are
digouts, slurry seals, chip seals,
and pavement overlays.

Streets & Pavement Management Program
Transportation
350-5638
Complete upgrade on the Miller
Way Booster Station, including a
new pump building (or enclosed
package pump station), new
pumps and motors (2 x 5-HP), and
new bladder tanks. The upgraded
booster station will have a design
capacity of 75-gpm. This will
increase the reliability of the water
supply to the Miller Way zone and
will improve water service
pressure. In addition, this is
expected to decrease maintenance
costs and increase efficiency.

Projects Budgeted FY 2029-30
Project
Number Category Request Title Description of Improvement Funding Source FY 2029-30 4487 - HBP
44,265
4950 - Measure O-2006 Sales Tax
5,735
4950 - Measure O-2006 Sales Tax
397,500
4924 - Storm Drain Facilities DIF 2,500
350-55XX Parks & Play
Structures
Soto Sports Complex LED Lighting Replace lighting with energy efficient LED lighting.
4950 - Measure O-2006 Sales Tax
100,000
350-54XX Public Facilities City Hall Remodel of Work Spaces, Security Glass, Safety
Update the City Hall workspaces for
better use of space, update the
counters, security glass, and
safety.
4950 - Measure O-2006 Sales Tax
100,000
350-54XX Public Facilities Police Station Security Fencing Add height to the existing fence. 4950 - Measure O-2006 Sales Tax 40,000 350-54XX Public Facilities City Facility Flooring (Fire Station 1, City Hall, Corp Yard, PD)
Replace flooring in City Facilities. 4950 - Measure O-2006 Sales Tax 150,000
4930 - Sewer Fund
475,000
4931 - Sewer Facility
475,000
350-5658 Sidewalks Sidewalk Repairs and
Improvements
Annual funding allocated towards
sidewalk improvements and repairs
throughout the City.
4960 - Measure E-2024 Sales Tax
500,000
Corrugated Metal Pipe (CMP)
Investigation and Repair
Annual project to repair
deteriorating corrugated metal
pipes (CMP) throughout the City.
350-5794
Cured-in-place pipe rehabilitation
along the entire length of the
sections mentioned below to
reduce infiltration, root intrusion,
and maintenance requirements, as
well as probability of failure.

Trenchless Sewer Rehabilitation -
Beech & Alder backyard
easements
612-58XX Sewer
350-57XX Bridge Traffic Way Bridge replacement
habitat mitigation
Five year post-construction
environmental mitigation and
monitoring for the Traffic Way
Bridge Rehabilitation project.

Drainage

Projects Budgeted FY 2029-30
Project
Number Category Request Title Description of Improvement Funding Source FY 2029-30 4920 - SB1
541,400
4960 - Measure E-2024 Sales Tax
4,854,400
4463 - CDBG
50,000
350-56XX Streets &
Transportation
Branch Mill Road Slope
Stabilization
This is one of the 3 main streets
not addressed in the 13-year PMP.

The design phase of this project will
help find solutions to correct the
slope that continues to fall into the
nearby creek area. Once the City
Council has approved the design of
the slope stabilization the
construction contractor will be
selected and construction can
begin.
4960 - Measure E-2024 Sales Tax
600,000
640-59XX Water Alpine Crossing, Bennett and Bell
Mains and Services
The 4‐inch main segment along
Bennett Ave and N. Alpine St. lacks
sufficient capacity to meet fire flow
requirements. This project was
identified as a project A-6 to
upgrade this main to 6" or greater
PVC pipe.
4940 - Water Fund
719,000
Total FY 2029-30 Projects 9,054,800
350-5638 Streets &
Transportation
Pavement Management Program The City’s Pavement Management Program provides maintenance
history and pavement condition
index (PCI) for all public streets in
Arroyo Grande. The City annually
performs pavement maintenance
on public streets to the extent that
funds are available. Streets are
selected based on pavement
condition, location, and the type of
maintenance application.

Maintenance applications are
digouts, slurry seals, chip seals,
and pavement overlays.

Projects Budgeted FY 2030-31
Project
Number Category Request Title Description of Improvement Funding Source FY 2030-31 350-55XX Parks & Play
Structures
Don Roberts Scoring Shed at
Volunteer Field
New scoring shed. 4950 - Measure O-2006 Sales Tax
10,000
350-55XX Parks & Play
Structures
Rancho Grande Playground
Replacement
Replace playground at Rancho
Grande Park.
4950 - Measure O-2006 Sales Tax
800,000
350-55XX Parks & Play
Structures
Pump Track/Skate Park Design and build a pump track
which is usable for scooters,
skateboards and bicycles.
4921 - Park Facilities DIF
100,000
350-54XX Public Facilities Corporation Yard Renovations Renovation of Corporation Yard buildings and facilities.
4950 - Measure O-2006 Sales Tax
260,000
612-58XX Sewer Lift Station #3 - Creek Bank
Analysis and Generator
w/Automatic Switchover
Emergency backup power to
prevent sanitary sewer overflow if
the portable generator is not
available during an outage.

Evaluation and repair of creek bank
erosion.
4930 - Sewer Fund
129,000
350-5658 Sidewalks Sidewalk Repairs and
Improvements
Annual funding allocated towards
sidewalk improvements and repairs
throughout the City.
4960 - Measure E-2024 Sales Tax
500,000
4920 - SB1
557,600
4960 - Measure E-2024 Sales Tax
4,871,900
4463 - CDBG
50,000
Streets &
Transportation
350-5638 The City’s Pavement Management
Program provides maintenance
history and pavement condition
index (PCI) for all public streets in
Arroyo Grande. The City annually
performs pavement maintenance
on public streets to the extent that
funds are available. Streets are
selected based on pavement
condition, location, and the type of
maintenance application.

Maintenance applications are
digouts, slurry seals, chip seals,
and pavement overlays.

Pavement Management Program Page 493 of 504
Projects Budgeted FY 2030-31
Project
Number Category Request Title Description of Improvement Funding Source FY 2030-31 350-56XX Streets &
Transportation
Branch Mill Road Slope
Stabilization
This is one of the 3 main streets
not addressed in the 13-year PMP.

The design phase of this project will
help find solutions to correct the
slope that continues to fall into the
nearby creek area. Once the City
Council has approved the design of
the slope stabilization the
construction contractor will be
selected and construction can
begin.
4960 - Measure E-2024 Sales Tax
3,000,000
350-5601 Streets &
Transportation
Fair Oaks Ave Active
Transportation Improvements,
Valley Road to Traffic
Way
Construct improvements on this
corridor with better pedestrian and
bicycle facilities, traffic calming and
improved access and circulation at
the intersection of US 101 south
bound ramps and Orchard Ave.

Work toward applying for Active
Transportation Project funding to
complete the design and
construction.
4950 - Measure O-2006 Sales Tax
75,000
350-56XX Streets &
Transportation
Harden Street Slope Stabilization This is one of the 3 main streets not addressed in the 13-year PMP.

The design phase of this project will
help find solutions to correct the
slope that continues to fall into the
nearby creek area. Once the City
Council has approved the design of
the slope stabilization the
construction contractor will be
selected and construction can
begin.
4960 - Measure E-2024 Sales Tax
200,000

Projects Budgeted FY 2030-31
Project
Number Category Request Title Description of Improvement Funding Source FY 2030-31 350-57XX Streets &
Transportation
Safe Routes to School - Newport
Slope Stabilization
Solution for access and slope
stabilization on Newport
44XX - SR2S
2,000,000
640-59XX Water AMI - Advanced Metering
Infrastructure
Upgrading to automated meter
reading system will allow the City to
conduct on-demand meter
readings, remotely manage data in
near real time, and identify non
revenue water.
4940 - Water Fund
1,500,000
Total FY 2030-31 Projects 14,053,500

Projects Budgeted FY 2031-32
Project
Number Category Request Title Description of Improvement Funding Source FY 2031-32 4950 - Measure O-2006 Sales Tax
390,000
4924 - Storm Drain Facilities DIF 10,000
350-55XX Parks & Play
Structures
Strother Park Playground
Equipment Replacement (Small)
Replace small playground at
Strother Park
4950 - Measure O-2006 Sales Tax
250,000
350-55XX Parks & Play
Structures
Oro Park Playground Equipment
Replacement
Replace playground at Oro Park. 4950 - Measure O-2006 Sales Tax 250,000
4930 - Sewer Fund
300,000
4931 - Sewer Facility
300,000
350-5658 Sidewalks Sidewalk Repairs and
Improvements
Annual funding allocated towards
sidewalk improvements and repairs
throughout the City.
4960 - Measure E-2024 Sales Tax
500,000
4920 - SB1
574,300
4960 - Measure E-2024 Sales Tax
5,062,200
4463 - CDBG
50,000
Corrugated Metal Pipe (CMP)
Investigation and Repair
Drainage
Streets & Pavement Management Program
Transportation
350-5638 The City’s Pavement Management
Program provides maintenance
history and pavement condition
index (PCI) for all public streets in
Arroyo Grande. The City annually
performs pavement maintenance
on public streets to the extent that
funds are available. Streets are
selected based on pavement
condition, location, and the type of
maintenance application.

Maintenance applications are
digouts, slurry seals, chip seals,
and pavement overlays.
350-5794
Cured-in-place pipe rehabilitation
along the entire length of the
sections mentioned below to
reduce infiltration, root intrusion,
and maintenance requirements, as
well as probability of failure.

Trenchless Sewer Rehabilitation -
Hillcrest/Sierra backyard
easements
612-58XX Sewer
Annual project to repair
deteriorating corrugated metal
pipes (CMP) throughout the City.

Projects Budgeted FY 2031-32
Project
Number Category Request Title Description of Improvement Funding Source FY 2031-32 350-5601 Streets &
Transportation
Fair Oaks Ave Active
Transportation Improvements,
Valley Road to Traffic
Way
Construct improvements on this
corridor with better pedestrian and
bicycle facilities, traffic calming and
improved access and circulation at
the intersection of US 101 south
bound ramps and Orchard Ave.

Work toward applying for Active
Transportation Project funding to
complete the design and
construction.
4950 - Measure O-2006 Sales Tax
225,000
350-56XX Streets &
Transportation
Connectivity from Branch (Coach) Coach Road is a major collector with existing Right-of-Way which
could be connected to Huasna.
4960 - Measure E-2024 Sales Tax
2,000,000
4940 - Water Fund
105,000
4942 - Water Facility
315,000
4940 - Water Fund
143,200
4942 - Water Facility 429,800
Total FY 2031-32 Projects 10,904,500
4" water main has insufficient
capacity to meet fire flow
requirements and must be upsized.
640-59XX Water Lierly Lane to Coach Road Upgrade
640-59XX Water Phased Main Replacement -
Highway 101 Crossing Upgrade,
West Cherry Avenue
This project will replace the existing
8-inch cast iron water main with
new 8-inch PVC pipe.