Agenda — Pacifica City Council, April 11, 2022 (part 2 of 2)

Sec. 4-7.1901. Removal or towing of vehicles.
(a) Any police officer may remove or cause to be removed a vehicle from any public street or public alley within the City limits to the nearest public garage or other place of safety, or to a garage designated or maintained by the City, under any of the following circumstances:
(1) When a vehicle is parked or left standing where the City, by resolution or ordinance, has prohibited parking and has authorized the removal of vehicles and has posted signs giving notice of such removal; (2) When a vehicle is illegally parked on a public street or public alley in violation of a City ordinance forbidding standing or parking and the use of the public street or public alley or portion thereof is necessary for the cleaning, repair, or construction of the public street or public alley, or for the installation of underground utilities, and signs giving notice that the vehicle may be removed are erected or placed at least twenty-four (24) hours prior to the removal by the authorities of the City pursuant to this section;
(3) When a vehicle is parked where the use of the public street or public alley or any portion thereof is authorized by the City for purposes other than the normal flow of traffic; or for the movement of equipment, articles or structures of unusual size, and the parking of such vehicle would interfere with such use or movement and signs giving notice that such vehicle may be removed are erected or placed at least twenty-four (24) hours prior to the removal by the authorities of the City pursuant to this section.
(4) In the event a vehicle is parked or left standing on a public street or parking space that has been designated to be a part of a preferential parking program, including but not limited to the Safe Parking Program as set forth in Section 4-7.1207, without clear display of a valid permit and where signs have been posted giving notice that unauthorized vehicles may be removed, any member of the Police Department may immediately remove, or cause the immediate removal of, the vehicle in the manner provided in and subject to the requirements of, the Vehicle Code of the State and this Municipal Code. (Ord. No. 768-C.S., § 1, eff. December 23, 2009)

13.a
Packet Pg. 198 Attachment: Attachment A - Proposed Ordinance Redline (4946 : Introduction of an Ordinance Amending Section 4-7.1901, “Removal or towing

CITY OF PACIFICA

COUNCIL AGENDA SUMMARY REPORT
4/11/2022
1 SUBJECT:

Adoption of an Ordinance to approve Rezoning RZ-201-18 and Development Plan DP-79-18 to rezone from the R-1/B-4/HPD zoning district to the P-D/HPD zoning district and to authorize a single-family residential use, filed by Matthew and Margaret Murphy, at the eastern terminus of Talbot Avenue (APN 016-270-110) in Pacifica (File No. 2018-057). Recommended California Environmental Quality Act (CEQA) status: Class 3 Categorical Exemption, CEQA Guidelines Section 15303.

RECOMMENDED ACTION:

Move to adopt an Ordinance entitled “An Ordinance of the City Council of the City of Pacifica approving Rezoning RZ-201-18 and Development Plan DP-79-18 to establish a Planned Development (P-D) zoning district with development plan at TBD Talbot Avenue (APN 016-270- 110).”
STAFF CONTACT:

Christian Murdock, AICP, Acting Director of Planning
(650) 738-7341
[email protected]
BACKGROUND/DISCUSSION:

The proposed ordinance was introduced at the regular meeting of the City Council held on March 28, 2022 and is now in order for adoption. Attached to this report, for reference, is the staff report from March 28, 2022 (Attachment A) which was presented to Council at a public hearing for consideration of a resolution that would approve a General Plan amendment to change the land use designation applicable to the subject site, and introduction of an ordinance that would approve a rezoning and development plan, to enable development of a single-family residence on an undeveloped site at the eastern terminus of Talbot Avenue.

At the City Council meeting held on March 28, 2022, in addition to introduction of the ordinance as proposed, the Council also adopted Resolution No. 16-2022, “A Resolution of the City Council of the City of Pacifica approving General Plan Amendment GPA-100-21 to change the land use designation in the Land Use Element of the General Plan from Low Density Residential to Very Low Density Residential at TBD Talbot Avenue (APN 016-270-110).” Adoption of the subject ordinance is necessary in order for the General Plan amendment approved by the City Council to take effect.

California Environmental Quality Act (CEQA) Status
Prior to adopting any legislative item, the City Council must comply with the California Environmental Quality Act (CEQA). Adoption of the ordinance would be exempt from CEQA pursuant to a Class 3 categorical exemption as provided in Section 15303 of the CEQA Guidelines. Specifically, the project (1) includes one single-family residence; and (2) is located in an area where the PMC and General Plan authorize single-family residential uses. 14 Packet Pg. 199
Pacifica City Council 2
April 11, 2022
Additionally, none of the exceptions to application of an exemption contained in Section 15300.2 of the CEQA Guidelines apply to the project, as described below:
• Sec. 15300.2(a): There is no evidence in the record that the project will impact an environmental resource of hazardous or critical concern in an area designated, precisely mapped, and officially adopted pursuant to law by federal, State, or local agencies. • Sec. 15300.2(b): There is no evidence in the record that successive projects of the same type in the area would have a significant environmental impact. • Sec. 15300.2(c): There is no evidence in the record of any possibility that the project would have a significant effect on the environment due to unusual circumstances. • Sec. 15300.2(d) through (f): The project is not proposed near a scenic highway, does not involve a current or former hazardous waste site, and, does not affect any historical resources.

Because the project is consistent with the requirements for a Class 3 exemption and none of the exceptions to applying an exemption in Section 15300.2 apply; therefore, there is substantial evidence in the record to support a finding that the project is categorically exempt from CEQA.

RELATION TO CITY COUNCIL GOALS AND WORK PLAN:

Adoption of the ordinance is not directly associated with a City Council goal or an item on the City Council’s Work Plan. Serving in a legislative capacity is a routine function of the City Council as part of its normal governance process as established in the Pacifica Municipal Code and in State Law.

FISCAL IMPACT:

No direct fiscal impact. Processing costs for this item are paid by the applicant.

ORIGINATED BY:

Planning Department
ATTACHMENT LIST:

Attachment A: Staff Report March 28, 2022 (PDF)
14 Packet Pg. 200
Pacifica City Council 3
April 11, 2022
ORDINANCE NO. (ID # 4951)
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING REZONING RZ-201-18 AND DEVELOPMENT PLAN DP-79-18 TO ESTABLISH A

PLANNED DEVELOPMENT (P-D) ZONING DISTRICT WITH DEVELOPMENT PLAN AT TBD TALBOT AVENUE (APN 016-270-110)
WHEREAS, an application has been submitted for construction of a 2,406-square foot (sf) single-family residence with attached 425-sf two-car garage on an undeveloped 24,149-sf parcel at the eastern terminus of Talbot Avenue (APN 016-270-110) (File No. 2018-057); and WHEREAS, the Planning Commission held a duly noticed public hearing on the proposed project and adopted Resolution No. 2022-001 recommending City Council approval of General Plan Amendment GPA-100-21, Rezoning RZ-201-18, and Development Plan DP-079-18 on January 18, 2022; and
WHEREAS, on March 14, 2022, the City Council of the City of Pacifica continued the public hearing to March 28, 2022; and
WHEREAS, the City Council of the City of Pacifica held a duly noticed public hearing on March 28, 2022, and introduced Ordinance No _______.

NOW, THEREFORE, the City Council of the City of Pacifica does ordain as follows:

Section 1. Recitals. The City Council of the City of Pacifica does hereby find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.

Section 2. Findings. Specific findings of fact for approval of the Rezoning and Development Plan are contained in the Planning Commission Resolution No. 2022-001 adopted on January 18, 2022, including without limitation findings related to the consistency of the residential development with the General Plan, and the City Council concurs with said findings and incorporates the findings herein by reference.

Section 3. Development Plan. The approved Development Plan DP-79-18 for the project site, which shall be implemented through the development more particularly set forth in a specific plan approved in accordance with Article 22 of Chapter 4 of Title 9 of the Pacifica Municipal Code, shall be as set forth in the following Table 1:
14 Packet Pg. 201
Pacifica City Council 4
April 11, 2022
TABLE 1
Standards Approved
Use • One Single-Family Residence
• Accessory Dwelling Unit(s) and Junior
Accessory Dwelling Unit(s) as allowed
by the Pacifica Municipal Code,
provided they do not increase the
amount of coverage under the Hillside
Preservation District (HPD).

Lot Size 20,000 to 43,559.99 square feet
Lot Width (min.) 100 feet
Lot Coverage (max.) Impervious Surface: 40%
Structure: 30%
Hillside Preservation
District (HPD) Coverage
(max.)

27.22% (6,573.13 square feet)
Landscaping (Planting
area+Undisturbed Natural
Vegetation) (min.)
20%
Setbacks
Front 45’-0”
Side 50’-0” (south) / 80’-0” (north)
Rear 26’-0”
Height 35’-0”
Off-street Parking 2 covered (garage) and 2 uncovered spaces (Variance and Parking Exception granted to
deviate from the HPD guest parking
requirement)
Usable Recreational Open
Space
536 square feet
Section 4. Reclassification. Section Map 8 of the Zoning Map of the City of Pacifica, as described in Section 9-4.302 of the Pacifica Municipal Code, is hereby amended as depicted in Exhibit 1 to this Ordinance. The specific area affected by this reclassification is more particularly described in the legal description included as Exhibit 2 to this Ordinance. The reclassification does not alter the existing Hillside Preservation District (HPD) zoning applicable to the site, which shall remain in full force and effect.

Section 5. Compliance with CEQA. The City Council hereby finds in the exercise of its independent judgment that the Project qualifies for a Class 3 exemption under CEQA Guidelines Section 15303, 14 Packet Pg. 202
Pacifica City Council 5
April 11, 2022
and that none of the exceptions to application of an exemption contained in Section 15300.2 of the CEQA Guidelines apply to this action.

Section 6. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for anyreason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section,subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.

Section 7. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance by the City Council of the City of Pacifica, California, and cause the same to be publishedonce in The Pacifica Tribune, a newspaper of general circulation, published and circulated in the City of Pacifica, California.
* * * * *
PASSED AND ADOPTED this day of , 2022, by the following vote:

AYES:

NOES:

ABSTAI
N:

ABSEN
T:

Mary Bier, Mayor
ATTEST: APPROVED AS TO FORM:

Sarah Coffey, City Clerk Michelle Marchetta Kenyon, City Attorney EXHIBIT 1
14 Packet Pg. 203
Pacifica City Council 6
April 11, 2022
P-D (DP-079-18)
14 Packet Pg. 204
Pacifica City Council 7
April 11, 2022
EXHIBIT 2

LEGAL DESCRIPTION
Real property in the City of Pacifica, County of San Mateo, State of California, described as follows:

PORTION OF THAT CERTAIN 19.62 ACRE TRACT OF LAND DESCRIBED IN THE DEED FROM SALADA IMPROVEMENT COMPANY TO OCEAN SHORE LAND COMPANY, DATED APRIL 26, 1911 AND RECORDED AUGUST 18, 1911 IN BOOK 200 OF DEEDS AT PAGE 151 (FILE NO. 4862), SAID PORTION BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE MOST NORTHERLY CORNER OF THE LANDS DESCRIBED IN THE DEED FROM RAY T. HIGGINS, INC., A CALIFORNIA CORPORATION TO WILLIAM J. SCHADE AND FRIEDA K. SCHADE, HIS WIFE, AS JOINT TENANTS, DATED MARCH 29, 1960 AND RECORDED MARCH 30, 1960 IN BOOK 3771 OF OFFICIAL RECORDS AT PAGE 605 (FILE NO. 42019-S), RECORDS OF SAN MATEO COUNTY, CALIFORNIA, THENCE FROM SAID POINT OF

BEGINNING WESTERLY ALONG THE NORTHERLY LINE OF SAID LAST MENTIONED LANDS, A DISTANCE OF 181.63 FEET TO THE WESTERLY LINE OF THE 19.62 ACRE TRACT OF LAND FIRST ABOVE REFERRED TO: THENCE NORTHERLY ALONG THE LAST

MENTIONED LINE TO THE NORTHWESTERLY CORNER OF SAID LAST MENTIONED LANDS, SAID NORTHWESTERLY CORNER BEING MARKED BY A STAKE MARKED NO. 8; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID 19.62 ACRE TRACT TO THE SOUTHWESTERLY LINE OF THE LANDS DESCRIBED AS PARCEL 2 IN THE DEED FROM

OCEAN SHORE LAND COMPANY, A CORPORATION TO UNITED STATES OF AMERICA, DATED JANUARY 18, 1943 AND RECORDED JANUARY 22, 1943 IN BOOK 1049, OF OFFICIAL RECORDS AT PAGE 206 (FILE NO. 73385-E), RECORDS OF SAN MATEO COUNTY, CALIFORNIA; THENCE SOUTHEASTERLY ALONG THE LAST MENTIONED LINE TO THE POINT OF BEGINNING.

APN: 016-270-110
14 Packet Pg. 205
Pacifica City Council 8
April 11, 2022
* * * * *
(ID # 4951) at 4/11/2022 7:00 PM City Council Regular Meeting 14 Packet Pg. 206

CITY OF PACIFICA

COUNCIL AGENDA SUMMARY REPORT
3/28/2022
1 SUBJECT:

Adoption of a Resolution to approve General Plan Amendment GPA-100-21 to change the General Plan land use designation from Low Density Residential to Very Low Density Residential, and introduction of an Ordinance to approve Rezoning RZ-201-18 and Development Plan DP-79-18 to rezone from the R-1/B-4/HPD zoning district to the P-D/HPD zoning district and to authorize a single-family residential use, filed by Matthew and Margaret Murphy, at the eastern terminus of Talbot Avenue (APN 016-270-110) in Pacifica (File No. 2018-057). Recommended California Environmental Quality Act (CEQA) status: Class 3 Categorical Exemption, CEQA Guidelines Section 15303. The Planning Commission recommended approval of the Resolution and Ordinance, and approved Specific Plan SP-169- 18, Variance PV-526-18, and Parking Exception PE-191-21 for construction of a 2,406-square foot (sf) single-family residence with a two-car garage on the 24,149-sf undeveloped parcel, by a vote of 7-0 on January 18, 2022.

RECOMMENDED ACTION:

Move to adopt a Resolution to approve General Plan Amendment GPA-100-21 and to introduce, waive the first reading, and read by title only, an Ordinance entitled “An Ordinance of the City Council of the City of Pacifica approving Rezoning RZ-201-18 and Development Plan DP-79-18 to establish a Planned Development (P-D) zoning district with development plan at TBD Talbot Avenue (APN 016-270-110).”
STAFF CONTACT:

Christian Murdock, AICP, Deputy Director of Planning
(650) 738-7341
[email protected]

SUMMARY
Planning Department staff initially provided public notice of a public hearing on this item for March 14, 2022. However, the City Council did not conduct the public hearing on that date and continued the public hearing to the present meeting.

Staff is requesting City Council consideration of a resolution that would approve a General Plan amendment to change the land use designation applicable to the subject site, and introduction of an ordinance that would approve a rezoning and development plan, to enable development of a single-family residence on an undeveloped site at the eastern terminus of Talbot Avenue. The following discussion summarizes the City’s proceedings on this application at the Planning Commission prior to consideration by the City Council.

BACKGROUND/DISCUSSION:

1. Overview
The Planning Commission conducted public hearings on the proposed project on August 2, 2021, and January 18, 2022. At the January 18, 2022, public hearing, the Planning Commission voted 7-0 to approve Specific Plan SP-169-18, Variance PV-526-18, and Parking Exception PE-191-21 (“Development Permits”), and to recommend City Council approval of

14.a
Packet Pg. 207 Attachment: Attachment A: Staff Report March 28, 2022 (4951 : TBD Talbot Single-Family Residential Project – Adoption of Ordinance) Pacifica City Council 2
March 28, 2022
General Plan Amendment GPA-100-21, Rezoning RZ-201-18, and Development Plan DP-79-18 (“Legislative Approvals”) by adopting Resolution No. 2022-001 (Attachment C). The Planning Commission agenda packet from January 18, 2022, is included as Attachment D (also includes agenda materials from August 2, 2021)1. The minutes from the Planning Commission hearings on August 2, 2021, and January 18, 2022, are included as Attachment E and Attachment F, respectively.

2. Project Description
As more fully detailed in the Planning Commission reference materials, the proposed project consists of construction of one single-family residence with 2,406 square feet (sf) of floor area on a 24,149-sf undeveloped parcel. The proposed project required Planning Commission approval of a specific plan and now requires City Council approval of a rezoning and development plan pursuant to the City’s Hillside Preservation District (HPD) zoning standards in Pacifica Municipal Code (PMC) Title 9, Chapter 4, Article 22.5. The project additionally required Planning Commission approval of a variance from HPD coverage standards because the site’s slope yielded no allowable coverage under the formula provided in PMC section 9-4.2257, and also required approval of a parking exception and variance because it would not provide the guest parking space required by the HPD off-street parking regulations in PMC Title 9, Chapter 4, Articles 22.5 and 28.

The project requires City Council approval of a General Plan amendment because the existing Low Density Residential (LDR) land use designation, which allows three to nine dwelling units per acre, would require construction of at least two dwelling units based on the project site’s size (approximately 0.554 acres).2 Because the project applicant only has interest in constructing one dwelling unit on the project site, the General Plan amendment is required to enable development of the proposed housing unit.

3. Existing General Plan, Zoning, and Surrounding Uses
A. Surrounding Uses
The project site is located at the eastern terminus of Talbot Avenue as shown in Figure 1. The approximately 470-foot length of Talbot Avenue immediately west of the project site is a private street with access rights provided by easement to the project site. The City of Pacifica previously vacated this segment of Talbot Avenue.
1 The project plans are included as Attachment E of Attachment D to this staff report. Except, however, that the Planning Commission approval excluded the guest parking space shown in the front yard of the project plans.
2 0.554 acres X 3 DU per acre = 1.662 DU = 2 DU minimum. Pursuant to PMC section 9-4.2312, fraction numbers derived from density calculations shall be rounded up to the next whole number for fractions from 0.5 through 0.9.

14.a
Packet Pg. 208 Attachment: Attachment A: Staff Report March 28, 2022 (4951 : TBD Talbot Single-Family Residential Project – Adoption of Ordinance) Pacifica City Council 3
March 28, 2022
Figure 1 – Project Vicinity, Looking East
Lands immediately to the north and east of the site are undeveloped. A single-family residence is located to the south of the site. Additional single-family residential development exists to the west of the project site along the south side of Talbot Avenue.

The general vicinity of the project site is characterized by one- to two-story single-family residential development toward the west along Talbot Avenue and on lower ground toward the northwest along Canyon Drive. Milagra Ridge Trail is located to the northeast of the project site on Golden Gate National Recreation Area property.

B. General Plan
The General Plan designation for the site is Low Density Residential (LDR) as shown in Figure

2. The LDR land use designation permits residential development at an average density of three to nine units per acre (an average lot area of 4,840-14,520 square feet per unit). The proposed single-family residence on a 24,149 square foot (sq. ft.) parcel is consistent with the use type but not the density of allowable development within the LDR land use designation.

Therefore, a General Plan Amendment is needed to change the land use designation to the Very Low Density Residential (VLDR) land use designation. The VLDR land use designation permits residential development at an average density of 0.2 to 2.0 units per acre (an average lot area of one-half to five acres per dwelling unit).

14.a
Packet Pg. 209 Attachment: Attachment A: Staff Report March 28, 2022 (4951 : TBD Talbot Single-Family Residential Project – Adoption of Ordinance) Pacifica City Council 4
March 28, 2022
Figure 2 – Existing General Plan Land Use Designations in Project Vicinity C. Zoning
The project site is currently located within the R-1/B-4/HPD (Single-Family Residential/B-Lot Size Overlay/Hillside Preservation District) zoning districts (Figure 3). In accordance with PMC section 9-4.2256, which addresses development procedures and standards in the HPD overlay district, the development proposal would require a zoning reclassification to a P-D (Planned Development) district and simultaneous approval of a Development Plan, which sets forth permitted uses within the P-D zoned area. The rezoning would not change the HPD zoning of the site and the resulting zoning classification would be P-D/HPD.

14.a
Packet Pg. 210 Attachment: Attachment A: Staff Report March 28, 2022 (4951 : TBD Talbot Single-Family Residential Project – Adoption of Ordinance) Pacifica City Council 5
March 28, 2022
In accordance with PMC section 9-4.2204(b), the regulations for area, coverage, density, yards, parking, height, and open ground area within the P-D zoning district shall be guided by the regulations of the residential, commercial, or industrial zoning district most similar in nature and function to the proposed project type. In this case, the existing R-1/B-4 lot size overlay zoning reflects the residential zoning district most similar in nature and function to the proposed singlefamily residence, primarily based on the project’s proposal for a single-family residential use consistent with the R-1 zoning, and the project site’s 24,149-sf lot size which is consistent with the 20,000 sf minimum lot size within the B-4 lot size overlay development standards in PMC Title 9, Chapter 4, Article 20.

4. City Council’s Role
The Planning Commission has reviewed and approved the Development Permits required for construction of the proposed project. Because no appeal was filed to challenge the Planning Commission’s action, approval of the Development Permits is final. The Development Permits will take effect and allow construction of the proposed project only if the City Council approves the Legislative Approvals, which include a proposed General Plan amendment, rezoning, and development plan pursuant to the P-D zoning provisions in PMC Title 9, Chapter 4, Article 22.

The Planning Commission has recommended approval of the Legislative Approvals.

The City Council in its capacity as the legislative body of the City and in the exercise of its police power under the California Constitution is required to approve legislative actions on behalf of the City. The City Council is not bound by specific findings when approving legislative items, and may consider all information relevant to the public health, safety, and welfare of persons within the City.

Prior to adopting any legislative item, the City Council must comply with the California Environmental Quality Act (CEQA). Compliance with CEQA requires the identification of potential significant impacts on the environment and identification of measures to mitigate any such effects. Discussion of CEQA compliance for the proposed Legislative Approvals is contained in the following section of this report.

5. California Environmental Quality Act (CEQA) Status
Figure 3 – Existing Zoning Classifications in Project Vicinity

14.a
Packet Pg. 211 Attachment: Attachment A: Staff Report March 28, 2022 (4951 : TBD Talbot Single-Family Residential Project – Adoption of Ordinance) Pacifica City Council 6
March 28, 2022
If the City Council approves the requested Legislative Approvals, they would enable the development of one single-family residence on the project site. A project to construct one single-family residence is exempt from CEQA pursuant to a Class 3 categorical exemption as provided in CEQA Guidelines Section 15303(a). Section 15303 states in pertinent part:

Class 3 consists of construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. The numbers of structures described in this section are the maximum allowable on any legal parcel. Examples of this exemption include but are not limited to:
(a) One single-family residence, or a second dwelling unit in a residential zone. In urbanized areas, up to three single-family residences may be constructed or converted under this exemption.

The subject proposal to construct one single-family residence fits within the scope of a Class 3 categorical exemption. Specifically, the project (1) includes one single-family residence; and (2) is located in an area where the PMC and General Plan authorize single-family residential uses.

Additionally, none of the exceptions to application of an exemption contained in Section 15300.2 of the CEQA Guidelines apply to the project, as described below:
• Sec. 15300.2(a): There is no evidence in the record that the project will impact an environmental resource of hazardous or critical concern in an area designated, precisely mapped, and officially adopted pursuant to law by federal, State, or local agencies. • Sec. 15300.2(b): There is no evidence in the record that successive projects of the same type in the area would have a significant environmental impact. • Sec. 15300.2(c): There is no evidence in the record of any possibility that the project would have a significant effect on the environment due to unusual circumstances. • Sec. 15300.2(d) through (f): The project is not proposed near a scenic highway, does not involve a current or former hazardous waste site, and, does not affect any historical resources.

6. Public Comments
Written public comments received during the Planning Commission’s review process are included as Attachment G. Verbal public comments from the public hearings conducted by the Planning Commission are summarized in Attachments E and F. The City also received one written public comment during consideration of continuance of the public hearing on March 14, 2022, included as Attachment H.

7. Staff Analysis and Recommendation
Approval of the Legislative Approvals would enable the construction of one single-family residence on an existing undeveloped lot. The Planning Commission, over the course of two public hearings, thoroughly considered issues relevant to the project including but not limited to

14.a
Packet Pg. 212 Attachment: Attachment A: Staff Report March 28, 2022 (4951 : TBD Talbot Single-Family Residential Project – Adoption of Ordinance) Pacifica City Council 7
March 28, 2022
aesthetics, views from adjacent public lands, HPD coverage, and the requested variances and parking exception. The Planning Commission voted unanimously to approve the Development Permits and to recommend City Council approval of the Legislative Approvals. Therefore, staff recommends that the City Council act in the manner recommended by the Planning Commission and approve General Plan Amendment GPA-100-21, Rezoning RZ-201-18, and Development Plan DP-79-18.

ALTERNATIVE ACTION:

The Council may deny the requested Legislative Approvals, which would have the effect of denying the overall project including the Development Permits approved by the Planning Commission.

RELATION TO CITY COUNCIL GOALS AND WORK PLAN:

Review of the proposed resolution and ordinance is not directly associated with a City Council goal or an item on the City Council’s Work Plan. Serving in a legislative capacity is a routine function of the City Council as part of its normal governance process as established in the Pacifica Municipal Code and in State Law.

FISCAL IMPACT:

No direct fiscal impact. Processing costs for this item are paid by the applicant.

ORIGINATED BY:

Planning Department
ATTACHMENT LIST:

Attachment A - Draft Resolution Approving General Plan Amendment (DOCX) Attachment B - Draft Ordinance Approving Rezoning and Development Plan (DOCX) Attachment C - Planning Commission Resolution No. 2022-001 (PDF) Attachment D - Planning Commission Agenda Packet - January 18, 2022 (omitting Attachments A and C) (PDF)
Attachment E - Planning Commission Minutes - August 2, 2021 (PDF) Attachment F - Planning Commission Minutes - January 18, 2022 (PDF) Attachment G - Public comments through Planning Commission phase (PDF) Attachment H - Public Comment Received at City Council Meeting - March 14, 2022 (PDF)

14.a
Packet Pg. 213 Attachment: Attachment A: Staff Report March 28, 2022 (4951 : TBD Talbot Single-Family Residential Project – Adoption of Ordinance)

CITY OF PACIFICA

COUNCIL AGENDA SUMMARY REPORT
4/11/2022
1 SUBJECT:

Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of Military Equipment” of Title 4 “Public Safety” of the Pacifica Municipal Code
RECOMMENDED ACTION:

Move to Waive the First Reading of and Introduce by Title an Ordinance of the City Council of the City Of Pacifica Adding Chapter 19, “Acquisition and Use of Military Equipment” of Title 4 “Public Safety” of the Pacifica Municipal Code, Approving the Pacifica Police Department Military Equipment Policy; and finding the introduction of the Ordinance exempt under the California Environmental Quality Act (CEQA).

STAFF CONTACT:

Daniel Steidle, Chief of Police
650-738-7314
[email protected]
BACKGROUND/DISCUSSION:

On September 30, 2021, California Assembly Bill 481 (AB 481) was signed into law.

Subsequently, California Government Code Sections 7070, 7071, and 7072 were adopted to codify the requirements set forth in AB 481.

AB 481 requires a law enforcement agency to obtain the approval of its governing body, through the adoption of a Military Equipment Use Policy, by ordinance at a regular meeting held pursuant to specified open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of military equipment, as defined. The bill allows the governing body to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it determines that the military equipment meets specified standards. AB 481 requires the governing body to annually review the ordinance and to either disapprove a renewal of the authorization for a type of military equipment or amend the military equipment use policy if it determines, based on an Annual Military Equipment Report prepared by the law enforcement agency, that the military equipment does not comply with the above-described standards for approval.

California Government Code Section 7070 provides a list of types of equipment that are to be considered “Military Equipment” for purposes of compliance with AB 481 and the Government Code. It is important to understand that what is defined as “Military Equipment” by the California State Legislature is not related to whether the equipment was acquired through military sources.

The Pacifica Police Department does not possess any equipment specifically designed for military use nor has the department acquired any equipment through a military surplus program, commonly known as the “1033 Program” (10 USC 2576a). While the Pacifica Police Department does not possess any equipment that it has obtained from the military, nor does it possess any equipment that was designed specifically for military use, it does possess equipment that is listed in Section 7070 and defined as “Military Equipment.” 15 Packet Pg. 214
Pacifica City Council 2
April 11, 2022
Military Equipment Policy Requirements
California Government Code Section 7070(d) defines a Military Equipment Use Policy as:
“Military equipment use policy means a publicly released, written document governing the use of military equipment by a law enforcement agency or a state agency that addresses, at a minimum, all the following:”

1. A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment.

2. The purposes and authorized uses for which the law enforcement agency or the state agency proposes to use each type of military equipment.

3. The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment.

4. The legal and procedural rules that govern each authorized use.

5. The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any officer, agent, or employee of the law enforcement agency or the state agency is allowed to use each specific type of military equipment to ensure the full protection of the public's welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy.

6. The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy.

7. For a law enforcement agency, the procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the law enforcement agency will ensure that each complaint, concern, or question receives a response in a timely manner.

California Government Code Section 7071(b) requires that the Police Department post to its website the Military Equipment Use Policy that it plans to propose to the City Council at least 30 days prior to any public hearing concerning the policy. The Police Department complied with this requirement by posting the draft policy being proposed, to its public website, on March 4, 2022.

California Government Code Section 7071(d) states that the City Council shall only approve the Military Equipment Use Policy if it determines all the following:

1. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.

2. The proposed military equipment use policy will safeguard the public's welfare, safety, civil rights, and civil liberties.

3. If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

4. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, 15 Packet Pg. 215
Pacifica City Council 3
April 11, 2022
corrective action has been taken to remedy nonconforming uses and ensure future compliance.

California Government Code Section 7070(e) establishes that the Police Department is responsible for delivering to the City Council an Annual Military Equipment Report, which the City Council can utilize to confirm compliance with the Military Equipment Use Policy and the accompanying Military Equipment Use Ordinance.

California Government Code Section 7070 provides a list of (16) types of equipment that are to be considered “Military Equipment” for the purpose of compliance with AB 481 and the associated California Government Codes, and the Police Department does possess and use some of these listed types of equipment. Of the (16) types of equipment specified, the Police Department possesses only (4) types. These types of equipment will be discussed further in the below proposed Military Equipment Policy section.

Proposed Military Equipment Policy
Staff, in collaboration with the City Attorney’s Office, has authored Pacifica Police Department Policy #705, Military Equipment (Attachment A). The policy contains the following to comply with AB481:
• Designation of a military equipment coordinator, primarily responsible for tracking inventory, collaborating with any agency that may use military equipment within our jurisdiction, coordination of community engagement meeting prior to release of annual Military Equipment Report, ensuring completion of the annual Military Equipment Report and receiving community questions or complaints regarding the use of military equipment.
• Requires the Chief of Police or the authorized designee to obtain approval from the governing body by way of an ordinance adopting the Military Equipment Policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue.
• Requires the Chief of Police or the authorized designee to submit a Military Equipment Report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072). The Chief of Police or the authorized designee shall also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. • Requires that within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department will discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment. • Specifies the mechanisms to be used by the Department to ensure compliance with the policy. Sustained complaints regarding violations of the policy are subject to investigation and discipline in accordance with Policy 1010, and other policies of the Department related to officer discipline.
15 Packet Pg. 216
Pacifica City Council 4
April 11, 2022
• Establishes procedures by which members of the public may register complaints, submit questions about the use of each specific type of military equipment subject to the policy, and procedures by which the Department will respond to such matters.

This policy contains the (4) types of “Military Equipment” that the Pacifica Police Department currently possesses, along with the required information describing each item, costs, training, and use. The (4) types of equipment detailed in the policy are:
1) Less Lethal Shotgun: (11) Shotguns, placed in each marked police vehicle, specifically marked for use only with a less-lethal “Super-Sock Beanbag Round.” This item is used to limit the escalation of conflict where employment of lethal force is undesirable. 2) Pepperball Launcher: (2) Launchers, placed in marked supervisor police vehicles, that launch “pepper balls,” which contained a powdered pepper irritant. 3) Rifles: (16) Rifles, placed in marked police vehicles, used as a lethal force option that provides greater accuracy than handgun type firearms, especially at longer distances.

Government Code § 7070 states that assault weapons are military equipment, with the exception of “standard-issued firearms.” As the rifles used by the Pacifica Police department are “standard issue,” staff recognizes that these rifles are not required to be included in the Military Equipment Policy. Staff believes it is likely the public would perceive rifles to be military equipment, and as such, staff has included them in the policy in the essence of transparency.
4) Command Post Trailer: (1) marked trailer, to be used as a command post for sustained law enforcement incidents, including DUI checkpoints, major collisions scenes, major crime scenes, etc.

The policy provides the ability for allied law enforcement agencies to use military equipment in our jurisdiction if they adhere to their own approved Military Equipment Policy. Law enforcement mutual aid may be requested at a local, countywide, or regional level in the event of an incident or sustained incident that requires personnel resources beyond those available within the police department of jurisdiction. Law enforcement mutual aid more frequently occurs on a much lower scale, such as an incident where a low number of additional personnel are needed to assist, and for a relatively short period of time.

Next Steps
Approval of the Pacifica Police Department’s Military Equipment Policy by the City Council through an ordinance is required for the continued use of the listed equipment. Once approved, the Chief of Police is required to seek approval of an amended Military Equipment Use Policy before the purchase or acquisition of additional military equipment as defined by Government Code § 7070. Approval of this policy is required each year.

Each year, the Chief of Police will be required to present a Military Equipment Report to City Council. Within 30 days of submitting and publicly releasing the annual report, the Pacifica Police Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment. The report will also be available for viewing on the Department’s website.

The Annual Military Equipment Report will include the following information for the immediately 15 Packet Pg. 217
Pacifica City Council 5
April 11, 2022
preceding calendar year for each type of military equipment:

1. A summary of how the military equipment was used and the purpose of its use.

2. A summary of any complaints or concerns received concerning the military equipment.

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

4. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

5. The quantity possessed for each type of military equipment.

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment ALTERNATIVE ACTION:

Decline to approve the Pacifica Police Department Military Equipment Policy and provide staff further direction.

RELATION TO CITY COUNCIL GOALS AND WORK PLAN:

Adoption of an Ordinance approving the Pacifica Police Department Military Equipment Policy resonates with the City Council Goal of An Engaged Community and Maintaining a Safe Community.

FISCAL IMPACT:

There is no fiscal impact to introduction of this Ordinance or approving the Pacifica Police Department Military Equipment Policy.

CEQA:

The Ordinance and Policy are exempt from the provisions of the California Environmental Quality Act (“CEQA”) because they will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project,” as defined in Section 15378 of the CEQA Guidelines.

ORIGINATED BY:

Police
ATTACHMENT LIST:

Attachment A - Military Equipment Policy #705 (PDF)
15 Packet Pg. 218
Pacifica City Council 6
April 11, 2022
ORDINANCE NO. (ID # 4929)
ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFICA ADDING CHAPTER 19, “AQCUISITION AND USE OF MILITARY EQUIPMENT” OF TITLE 4 “PUBLIC SAFETY” OF THE PACIFICA MUNICIPAL CODE
WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, relating to the use of military equipment by law enforcement agencies; and
WHEREAS, Assembly Bill 481, codified at California Government Code sections 7070 through 7075, requires law enforcement agencies to obtain approval of the applicable governing body prior to taking certain actions relating to the funding, acquisition, solicitation, or use of military equipment; and
WHEREAS, Assembly Bill 481, requires that the approval by the governing body be by an ordinance adopting a military equipment use policy, at a regular meeting held pursuant to open meeting laws; and
WHEREAS, Assembly Bill 481 allows the governing body of a city to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it makes specified determinations with respect to a military equipment use policy; and WHEREAS, a draft of the Pacifica Police Department Policy 705 “Military Equipment” was published on the Department’s internet website, and provided to the City Council at least 30 days prior to public hearing in accordance with requirements of Government Code section 7071; and
WHEREAS, the Pacifica Police Department’s Lexipol Policy 705 “Military Equipment” meets the requirements of California Government Code section 7070, subdivision (d); and
WHEREAS, the military equipment identified in Policy 705 “Military Equipment” is necessary, because there are no reasonable alternatives that can achieve the same objectives of officer and civilian safety; and
WHEREAS, Policy 705 “Military Equipment” will safeguard the public’s welfare, safety, civil rights, and civil liberties; and
WHEREAS, the military equipment identified in Policy 705 “Military Equipment” is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety; and
WHEREAS, no prior military use policy has existed in the City of Pacifica that was applicable to the use of military equipment, and the adoption of such policy shall serve to secure future compliance;

15 Packet Pg. 219
Pacifica City Council 7
April 11, 2022

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PACIFICA DOES ORDAIN AS FOLLOWS:

Section 1. Recitals. The City Council of the City of Pacifica does hereby find the above referenced recitals are true and correct and material to the adoption of this Ordinance.

Section 2. Policy Approved and Adopted. Pacifica Police Department’s Lexipol Policy 705 “Military Equipment” is hereby approved and adopted as set forth in Exhibit A attached hereto.

Section 4. The City Council finds that this ordinance and the City of Pacifica Police Department’s Lexipol Policy 705 are exempt from the provisions of the California Environmental Quality Act (“CEQA”) because they will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project,” as defined in Section 15378 of the CEQA Guidelines.

Section 5. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentence, clauses or phrases be declared unconstitutional.

Section 6. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance by the City Council od the City of Pacifica, California, and cause the same to be published in accordance with State Law.

Section 7. Effective Date. This Ordinance shall be in full force and effect thirty (30) days after its adoption and shall be published and posted as required by law.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the ______ day of _______ 20_____, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:
__________________________
Mary Bier, Mayor
ATTEST: APPROVED AS TO FORM:
________________________________ ___________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney 15 Packet Pg. 220
Pacifica City Council 8
April 11, 2022
* * * * *
(ID # 4929) at 4/11/2022 7:00 PM City Council Regular Meeting 15 Packet Pg. 221
Pacifica Police Department
Pacifica PD Policy Manual
Military Equipment
705.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).

The Pacifica Police Department does not possess any tactical equipment that it has obtained from the military, nor does it possess any equipment that was specifically designed for military use.

The Pacifica Police Department also has not acquired any equipment through military surplus programs such as the 1033 Program (10 USC 2576a).
705.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-tontrucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.

Policy
705

15.a
Packet Pg. 222 Attachment: Attachment A - Military Equipment Policy #705 (4929 : Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of • TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.
705.2 POLICY
It is the policy of the Pacifica Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. All members of the Pacifica Police Department will comply with this policy. 705.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Pacifica Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department’s funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
705.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:

1. Less Lethal Shotgun: Less Lethal Shotgun is used to deploy the less lethal 12-gauge Super-Sock Beanbag Round.
a. Description, quantity, capabilities, and purchase cost i. MOSSBERG 590 TACTICAL LESS LETHAL SHOTGUN, cost: approximately $530 each, quantity:11. The Mossberg 590 Tactical Less Lethal Shotgun is used to deploy the less lethal 12-gauge Super-Sock Beanbag Round up to a

15.a
Packet Pg. 223 Attachment: Attachment A - Military Equipment Policy #705 (4929 : Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of distance of 75 feet. The dedicated 12-gauge shotgun is distinguishable by an orange butt stock and fore grip. The range of the weapon system helps to maintain space between officers and a threat reducing the immediacy of the threat which is a principle of de-escalation.
ii. 12-GAUGE SUPER-SOCK BEANBAG ROUND, cost: approximately $6.45, quantity: 80. A less lethal 2.4-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of shot at a velocity of 270 feet per second (FPS). CTS Super-Sock rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by an orange butt stock and fore grip. This round provides accurate and effective performance when fired from the approximate optimal rages between 5 and 20 yards. The maximum effective range of this munition is up to approximately 75 feet from the target. The Super-Sock is in its deployed state immediately upon exiting the barrel. It does not require a minimum range to “unfold” or “stabilize.” The Super-Sock is an aerodynamic/projectile. However, accuracy is relative to the shotgun, barrel length, environmental conditions, and the operator. The Super-Sock is accurate, however, effectiveness depends on many variables, such as distance, clothing, stature, and the point where the projectile impacts. b. Purpose
To limit the escalation of conflict where employment of lethal force is undesirable. c. Authorized Use
Situations for use of the less lethal weapon systems may include, but are not limited to:
i. The suspect is armed with a weapon and the tactical circumstances allow for the safe application of approved munitions.
ii. The suspect has made credible threats to harm him/herself or others. iii. The suspect is engaged in riotous behavior or is throwing rocks, bottles or other dangerous projectiles at people and/or officers.
iv. There is probable cause to believe that the suspect has already committed a crime of violence and is refusing to comply with lawful orders. v. Training exercises or approved demonstrations.
d. Lifespan
Mossberg 590 Tactical Less Lethal Shotgun- approximately 15-20 years.

Super Sock Round- No listed expiration date.
e. Fiscal Impact of Maintenance
Costs of procurement are listed above. Annual cost of ongoing maintenance is estimated to be approximately $500.
f. Training
Prior to use of the 12 gauge less lethal shotgun, personnel shall attend a 2 hour course instructed by POST certified instructors, followed by proficiency qualification. Personnel will complete annual qualification demonstrating proficient use of the weapon and policy knowledge.

15.a
Packet Pg. 224 Attachment: Attachment A - Military Equipment Policy #705 (4929 : Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of g. Legal and Procedural Rules
Use is governed under Lexipol Policy 303.9. It is the policy of the Pacifica Police Department to utilize the less lethal shotgun only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

2. Pepperball Launcher: A device that discharges irritant projectiles. a. Description, quantity, capabilities, and purchase cost i. Pepperball FTC LAUNCHER, cost: approximately $591 each, quantity: 2.

The FTC Launcher is a compressed-air powered launcher designed to fire non-lethal Pepperball projectiles. The FTC Launcher features a hopper that can hold up to 180 rounds, a flexible air source configuration and a compact moduler design.
ii. Pepperball LIVE PROJECTILE, cost: approximately $2.78 per projectile, quantity: 90. The basic Pepperball projectile contains PAVA pepper powder, and is designed for direct impact and area saturation, especially in confined, interior spaces. Discharged from a Pepperball Launcher, the projectile has a velocity of 280-350 FPS. The projectile has a direct impact of 30ft and an area of saturation of 150+ft. The projectile contains 0.5% PAVA Powder.
iii. Pepperball LIVE-X PROJECTILE, cost: approximately $3.58 per projectile, quantity: 90. The Live Projectile contains a concentrated amount of PAVA pepper powder. One round of LIVE-X contains the equivalent PAVA irritant chemical agent in 10 Pepperball LIVE rounds. Discharged from a Pepperball launcher, the projectile has a velocity of 280-350 FPS. The projectile has a direct impact of 60ft and an area of saturation of 150+ft. The projectile contains 5% PAVA Powder.
b. Purpose
To limit the escalation of conflict where employment of lethal force is undesirable.

Situations for use of the less lethal weapon systems may include but, are not limited to:
i. The suspect is armed with a weapon and the tactical circumstances allow for the safe application of approved munitions.
ii. The suspect has made credible threats to harm him/herself or others. iii. The suspect is engaged in riotous behavior or is throwing rocks, bottles or other dangerous projectiles at people and/or officers.
iv. There is probable cause to believe that the suspect has already committed a crime of violence and is refusing to comply with lawful orders. v. Training exercises or approved demonstrations.
c. Authorized Use
Only those officers who have been trained in the use of Pepperball launchers are authorized to use the Pepperball launchers.

15.a
Packet Pg. 225 Attachment: Attachment A - Military Equipment Policy #705 (4929 : Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of d. Training
Prior to use of the Pepperball launcher and projectiles, personnel will complete a 2 hour course instructed by vendor trained instructors, followed by proficiency qualification.

Personnel will complete annual qualification demonstrating proficient use of the Pepperball launcher and policy knowledge.
e. Lifespan
i. Pepperball FTC Launcher- approximately 10 years
ii. Pepperball Live Projectile- approximately 3 years
iii. Pepperball Live-X Projectile- approximately 3 years f. Fiscal impact of Maintenance Costs
Annual and ongoing maintenance cost estimated to be $500. g. Legal and Procedural Rules
Use is established under Lexipol 303.7.2. It is the policy of the PPD to utilize Pepperball only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

3. Rifles: Guns that are fired from shoulder level, having a long spirally grooved barrel intended to make bullets spin and thereby have greater accuracy over a long distance. a. Description, quantity, capabilities, and purchase cost i. SMITH & WESSON M&P15 SPTII PATROL RIFLE 16”, cost: approximately $607.18, quantity: 16. A rifle that fires an intermediate-power cartridge (.223) which is more powerful than a standard pistol. It is a short-barreled rifle which allows a trained officer better control inside of structures with greater accuracy than a handgun, and long range accuracy. Built to perform multiple uses under various conditions, M&P15 rifles are as versatile as they are reliable. M&P15 rifles are lightweight and rugged embodying the best combination of function and form.
.
ii. Colt M4 Commando Semi-Auto Rifle 11.5”, cost: approximately $1,199.00, quantity: 3. A rifle that fires an intermediate-power cartridge (.223) which is more powerful than a standard pistol. It is a short-barreled rifle which allows a trained officer better control inside of structures with greater accuracy, rapid response, maneuverability and enhanced firepower in critical situations. iii. WINCHESTER RANGER.223 55GR BALLISTIC SILVERTIP RIFLE ROUND, cost: approximately $987.00 per case of 1000 rounds, quantity: 3 cases.

The.223 rounds feature 55 Grain Ballistic Silvertip Centerfire Rifle Ammunition with brass cases and boxer primers. This ammunition is non-corrosive. The .223 round offers muzzle velocity of 3240 feet per second and muzzle energy of 1282 ft lbs.
iv. WINCHESTER REMINGTON .223 55GR FULL METAL JACKET RIFLE ROUND, cost: approximately $459 per case of 1000, quantity: 5 cases. The Full Metal Jacket rifle round features 55 Grain full metal jacket bullets, recommended for target and range training.The.223 round offers muzzle velocity of 3240 feet per second and muzzle energy of 1282 ft lbs.

15.a
Packet Pg. 226 Attachment: Attachment A - Military Equipment Policy #705 (4929 : Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of b. Purpose
To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible. c. Authorized Use
Members who have received in-house / POST training from certified POST range instructors.
d. Lifespan
i Smith & Wesson M&P15 Patrol Rifle- approximately 15-20 years. ii Colt M4 Comando Semi-Auto Rifle- approximately 15-20 years. iii Winchester Ranger .223 Ballistic Silvertip Rifle Rounds- no expiration. iv Winchester Remington .223 Full Metal Jacket Rifle Rounds- no expiration. e. Fiscal Impact
Annual and ongoing maintenance cost will is estimated to be approximately $1,000- $1,500.
f. Training
Prior to use of the rifle, personnel will complete a 4 hour course presented by a POST approved instructor, followed by proficiency qualification. Personnel will complete annual qualification demonstrating proficient use of the rifle and policy knowledge. As courses are available, the Training Sergeant will send personnel to a supplemental POST approved 16 hour Patrol Rifle Operator course. g. Legal and Procedural Rules
Use is established under Lexipol 306.3.6. It is the policy of the PPD to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

4. Command Post Trailer: Marked police trailer used to command sustained law enforcement incidents.
a. Description, quantity, capabilities, and purchase cost i. TPD 24’ x 8.5’ tandem 5k Axle Special Ops trailer VIN# 1T9C29028B1090003, purchase price $50,000.
.
b. Purpose
To be used as a command post for sustained law enforcement incidents, including but not limited to DUI checkpoints, major collision scenes, major crime scenes, or other sustained incident where access to law enforcement computers, communication equipment and shelter is required.
c. Authorized Use
All department members upon authorization of the watch commander. d. Lifespan
Estimated 20-25 years.

15.a
Packet Pg. 227 Attachment: Attachment A - Military Equipment Policy #705 (4929 : Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of e. Fiscal Impact
Annual and ongoing maintenance cost estimated to be $1,500. f. Training
1 hour of in-house training regarding safe deployment and stationing of trailer. g. Legal and Procedural Rules
Deployment of trailer is only allowed upon authorization of the watch commander. 705.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 705.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the military equipment is approved for use in accordance with this policy. Law enforcement agencies responding to a call for mutual aid within this jurisdiction shall adhere to their own policies on the use of military equipment.
705.7 ANNUAL REVIEW AND REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee shall submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

15.a
Packet Pg. 228 Attachment: Attachment A - Military Equipment Policy #705 (4929 : Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of The Chief of Police or the authorized designee shall also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory.

The Annual Military Equipment Report will include the following information for the immediately preceding calendar year for each type of military equipment:

1. A summary of how the military equipment was used and the purpose of its use.

2. A summary of any complaints or concerns received concerning the military equipment.

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.

5. The quantity possessed for each type of military equipment.

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. 705.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding thefunding, acquisition, or use of military equipment.
705.9 POLICY COMPLIANCE
Government Code section 7070 requires that this policy specify the mechanisms to be used by the Department to ensure compliance with this policy. Complaints regarding violations of this policy are subject to investigation and discipline in accordance with Policy 1010, and other policies of the Department related to officer discipline.
706.9 PUBLIC COMPLAINTS, QUESTIONS, AND INVESTIGATION
Government Code section 7070 requires that this policy specify the procedures by which members of the public may register complaints, submit questions about the use of each specific type of military equipment subject to this policy, and procedures by which the Department will respond to such matters.

Pursuant to California Government Code §7070(d)(7), members of the public may register complaints or concerns or submit questions about the use of each specific type of Military Equipment in this policy by any of the following means:

15.a
Packet Pg. 229 Attachment: Attachment A - Military Equipment Policy #705 (4929 : Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of

1. Via email to: [email protected]

2. Via phone call to: (650) 738-7314

3. Via mail sent to: Pacifica Police Department
Attn: Military Equipment Use Coordinator
2075 Coast Highway
Pacifica, CA 94066
The Pacifica Police Department is committed to responding to complaints, concerns and/or questions received through any of the above methods in a timely manner. Complaints regarding violations of this policy are subject to investigation and discipline in accordance with Policy 1010, and other policies of the Department related to officer discipline.

15.a
Packet Pg. 230 Attachment: Attachment A - Military Equipment Policy #705 (4929 : Introduction of an Ordinance Adding Chapter 19, “Acquisition and Use of

CITY OF PACIFICA

COUNCIL AGENDA SUMMARY REPORT
4/11/2022
1 SUBJECT:

City Council Goals and Priorities for FY2022-23
RECOMMENDED ACTION:

Adopt City Council Goals and Priorities for FY2022-23.

STAFF CONTACT:

Kevin Woodhouse, City Manager
(650) 738-7409
[email protected]
BACKGROUND/DISCUSSION:

Each year the City Council convenes in advance of the new fiscal year to review their list of value-driven goals and develop a set of priority projects/initiatives to be implemented in the upcoming fiscal year. The goal-setting session is intended to identify Council priorities in advance of developing the annual budget, in order to align the City’s financial resources with the projects and initiatives that will make up the workplan for the fiscal year. This year’s goal-setting session was held on Friday, March 25
th and Saturday, March 26th. The Friday session focused on City Council team building. The Saturday session focused on discussing goals and priorities for the upcoming fiscal year. Both sessions were facilitated by Stacey McLaughlin, president of Mountaintop Insight Consulting.

As described below, the on-going list of seven goals continues to represent a comprehensive range of values supported by the City Council. Additionally, the list of Council priorities constitutes a robust workplan for FY2022-23, with many multi-year priorities that are continuing from previous years.

City Council Goals
Attachment A shows edits to the seven City Council Goals recommended for adoption, encompassing a comprehensive range of values supported by the City Council. Important wording edits to reflect current priorities were agreed to by the Council in the definitions of six of the seven goals, as shown in the attachment. Attachment B shows the final version with edits accepted.

Priority Projects
This section of the report provides the list of priorities agreed to by the Council during the March 26th session. A major theme during this year’s goal-setting workshop was the significant workload the City has been pursuing despite its limited budget and staffing resources, with more than 50 major priorities between those directed by City Council plus other non-discretionary City priorities driven by regulatory or legal requirements, previous Council priorities, continuing Capital Improvement Program projects, and essential organizational improvements. With this robust workload in mind, the City Council agreed to add only one new priority to the workplan - Review of City Commission and Committee Charters. With 12 City Council Priorities continuing from the current fiscal year plus the one new priority, there will be 13 City Council Priorities for 16 Packet Pg. 231
Pacifica City Council 2
April 11, 2022
FY2022-23.

The following table lists the 13 City Council Priorities and provides an initial brief description of the scope of work anticipated for FY2022-23. Following Council adoption of priorities, and budget adoption in June, staff will develop more detailed workplans for each priority at the beginning of Fiscal Year 2022-23 to guide the City’s work program and report out progress.

Attachment C provides a condensed one-page listing of the recommended FY2022-23 Priorities, along with a preamble statement describing how this list of projects fulfills the Council’s value-driven broader goals. Also, a list (for reference only) of the many nondiscretionary priorities that are on-going, anticipated to be completed this year, and anticipated to continue into FY2022-23 is provided as Attachment D. The purpose of showing this list in Attachment D, as was discussed during the goal-setting workshop, is to convey the full actual workplan the organization is undertaking beyond the Council’s annual priorities and the day-today programs and services delivered by the City.

FY2022-23 Priorities (Priorities are numbered for ease of reference and not for relative priority)

1. Continue the Beach Boulevard Infrastructure Resiliency Project This major, multi-year infrastructure project is well underway. In June 2021, Phase 1 was completed with the City Council selecting the hybrid seawall with rock apron and beach nourishment alternative to move into Phase 2, the Design and Environmental Phase. Funding strategy development is on-going and will need to include a variety of funding sources including local, state, and federal funding.

Design, environmental review, and permitting is anticipated to begin in FY2022-23 once funding is secured.

2. Continue efforts related to a New Sharp Park Library & Renovated Sanchez Library Recently, the City applied for, in collaboration with San Mateo County Libraries, a new grant funding opportunity for library infrastructure improvements. The scope of work for FY2022-23 will depend on whether the City receives grant funding. However, regardless of grant funding, the scope of work will entail continuing to inform the community about the advantages of a New Sharp Park Library & Renovated Sanchez Library to gain support for a future bond measure to fund construction of the project.

3. Complete an update to the Climate Action Plan The City’s first Climate Action Plan (CAP) was adopted in 2014. This project would update the CAP using updated greenhouse gas emissions estimates and updated methodologies based on recent best practices. Staff is working with consultants DNV GL through a partnership with Regional Climate Action Planning Suite (RICAPS) on this update. The scope of work entails reviewing the latest Menu of Measures (a pre-set list of greenhouse gas (GHG) reduction measures most applicable to the San Mateo County region and is the recommended approach to estimating potential GHG emissions avoided from each measure) provided by RICAPS for consideration and to be incorporated as part of strategies and actions of the climate action plan update. The scope of work will also entail re-engaging with active community groups during this process, including the communitybased Climate Committee and Pacifica Rotary Club.

4. Complete the Vision 2025 & Beyond strategic financial planning process to articulate a long-term and financially sustainable vision for Pacifica The City Council approved purpose statement for this study is “to tell Pacifica’s story of the many priority infrastructure projects and enhanced programs and services envisioned for Pacifica’s mid to long-term future that are equitable and inclusive and will help all Pacificans thrive, and to articulate the City’s financial opportunities, challenges, and strategies to achieve this vision and resiliency.” The study includes several major components - Financial Forecasting, Public Engagement and Surveys, Analysis of Revenue Enhancement Strategies, and Analysis of Economic Development Strategies. All of these components are underway and continuing into FY2022-23. 16 Packet Pg. 232
Pacifica City Council 3
April 11, 2022

5. Continue Esplanade Avenue Bluff Erosion Infrastructure Protection Projects The multiyear Esplanade Avenue Bluff Erosion Infrastructure Protection Projects consist of two separate projects: 310-330 Esplanade Avenue and 400 Esplanade Avenue. Both projects aim to protect the street and infrastructure within it from severe bluff erosion. In FY2022-23, planning, design, and environmental work will continue, including acquiring property rights, geotechnical investigations, environmental phase studies, permitting and design of the structures.

6. Begin Part 2 of the City Tree Program Evaluation Tree maintenance and removals are a complex topic. Part 1 of this work, anticipated for completion late FY2021-22, entails updating the Heritage Tree Ordinance (HTO). The scope of work for FY2022-23, Part 2, will build upon Part 1 to start a tree inventory, establish a sustainable Urban Forest/Open Space Management Plan (species selection, planting, maintenance, staffing needs), provide urban forest cost/benefit analysis, and implement a software program to assist with tree management. Significant public engagement is critical to both Parts.

7. Complete the Civic Center facility health and safety rehabilitation and renovation project In response to air quality issues and building deficiencies of the City Hall and the Planning/PB&R Building, in 2020 the the City Council approved a project to rehabilitate and renovate the Civic Center facilities. Conceptual Design was completed in 2021 and a funding strategy approved. Design, bidding, award of a construction contract and beginning of construction is anticipated by June 2022. The scope of work for FY2022-23 entails near completion of construction.

8. Prepare a Quarry Site Specific Plan The Quarry owner desires to develop the property in a manner that is mutually acceptable to him, the City, and the Pacifica community. Preparing a Quarry Site Specific Plan entails a City-led, owner-funded specific plan process to create a plan for the Quarry site to replace limited planning policies in the existing Rockaway Beach Specific Plan. The new specific plan would include a detailed land use and implementation plan for the Quarry site. The scope of work for the specific plan would include robust community engagement and the City Council would retain land use authority, subject to certification by the Coastal Commission. The Quarry Site Specific Plan is a separate project from the ongoing Quarry Reclamation Plan.

9. Complete an update to the Wireless Communication Facilities Ordinance The Wireless Communication Facilities Ordinance would modernize the City's current regulations to reflect the evolution of the wireless industry and the types of facilities most commonly constructed with today's technology. It would also update current regulations to reflect recent changes in state and federal law that affect local control. Specific objectives for the ordinance amendments would be determined when the project is initiated. Preliminary Council discussions included a desire that the ordinance reflect and incentivize the community’s design values for such facilities while complying with state and federal regulations.

10. Prepare an update to the Housing Element of the General Plan This project would update the Housing Element of the General Plan in accordance with state law. Key objectives of the Housing Element update include the identification of areas suitable for construction of housing for all income levels to satisfy the City’s Regional Housing Needs Allocation (RHNA), as well as to identify constraints to the production of affordable housing and strategies to eliminate those barriers. The Housing Element update process will include a community outreach process conducted in part with countywide partners in the 21 Elements housing consortium. The ABAG region’s RHNA Cycle 6 Housing Element updates will cover the period from January 2023 through January 2031. The adoption deadline for the Housing Element updates under Cycle 6 is January 15, 2023. Adoption of the Housing Element will conclude with public hearings at the Planning Commission and the City Council, and certification by the California Department of Housing and Community Development.

11. Design and implement a Council conversation with the Community about homelessness Homelessness continues to be a difficult problem to address, made even more difficult by the pandemic and the rising cost of housing. The City continues to support, and work with, the Pacifica Resource Center on efforts to bring services to unhoused persons in Pacifica. 16 Packet Pg. 233
Pacifica City Council 4
April 11, 2022
Understanding that homelessness is a problem that is not going to be solved soon, the City Council is interested in designing and implementing a community conversation forum about homelessness.

12. Continue to evaluate and implement Economic Development Initiatives focused on Business Assistance Actions and policies that could benefit local businesses and stimulate the local economy are essential to overcoming the economic impacts of the pandemic. The first phase of this priority during FY2021-22 focused on developing new ordinances to support the continuation of outdoor business activities, such as outdoor dining. The scope of work for FY2022-23 will entail review of ways to streamline special event permitting procedures, as well as identify other potential business assistance initiatives for further study. This effort also entails the continuing business assistance work of the Economic Development Committee.

13. Review City Commission and Committee Charters City Commissions and Committees serve as advisory bodies to the City Council, with members appointed by the City Council. From time to time, the charters which establish the purpose of these advisory bodies should be reviewed and updated to ensure the bodies are fulfilling the purpose that aligns with the Council’s goals and priorities. The most recent charter update was for the Economic Development Committee in 2019. The Open Space and Parkland Advisory Committee has requested Council review of their charter. And other Committees/Commissions may be interested in such reviews as well. The scope of work for this priority will entail reviewing each body’s charter and updating as appropriate. The specific process and timing of such reviews will be determined at the beginning of FY2022-23 and will depend on when staff resources in the supporting departments are available to conduct the review and update work in relation to other Council and non-discretionary priorities.

FISCAL IMPACT:

Adoption of the FY2022-23 Goals and Priorities, while not having a fiscal impact in and of itself, implies that the Council is interested in evaluating how to fund these projects during consideration of the FY2022-23 budget. The City Manager will present more detail and recommendations about costs associated with these Priority Projects during upcoming budget hearings.

ORIGINATED BY:

City Manager's Office
ATTACHMENT LIST:

Attachment A – City Council Goals 2022-23, edits shown (PDF) Attachment B – City Council Goals 2022-23, clean version (PDF) Attachment C – City Council Priorities 2022-23 (PDF)
Attachment D – Other Non-discretionary City Priorities (PDF) 16 Packet Pg. 234
City Council Goals
Proposed April 11, 2022
The Pacifica City Council Goals wheel diagram above represents the equal importance of each goal. The goals are further described, in no order of importance, as:
• “Fiscal Sustainability”includesinvesting in economic development to increase revenues, funding a reserve/emergency fund, and being well prepared for grant opportunities. • “An Engaged Community” includes creating opportunities to expand public participation, increase communicationtaking actionsto restore trust in city government, expanding communication, and building community post-COVID.
• “Stewardship of City Infrastructure” includesrepairing/replacing outdated city facilitiessuch as city hall, the libraries, fire stations, etc., improving streets, stormwater and wastewater infrastructure and responding to impacts of sea level rise and other effects of climate change. • “A Healthy and Compassionate Community” includes addressing affordable housing and mental health services, investigating exploring and implementing strategies related that relate to homelessness, and supporting youth community services for all ages.
• “Environmental Sustainability” includes mapping outstewardship of parks, urban forests and open space, preserving hillsides and beaches, paying attention to flora and fauna needs, environmental health,and adaptation to climate adaptation and reducing our carbon footprintchange. • “A Strong City Workforce Infrastructure” includesstrategiesto address employee retention and attraction challenges, work-life balance, engaging staff in decision-making, and celebrating and recognizing staff. • “Maintaining a Safe Community” includes supporting our first responders (police, fire, public works), responding to emergencies, protecting people, property, and businesses, and our infrastructure (streets, sidewalks, storm and waste water), and engaging in emergency preparedness community outreach, public education and prevention activities.

16.a
Packet Pg. 235 Attachment: Attachment A – City Council Goals 2022-23, edits shown [Revision 1] (4953 : City Council Goals and Priorities for FY2022-23) City Council Goals
Proposed April 11, 2022
The Pacifica City Council Goals wheel diagram above represents the equal importance of each goal. The goals are further described, in no order of importance, as:
• “Fiscal Sustainability”includesinvesting in economic development to increase revenues, funding a reserve/emergency fund, and being well prepared for grant opportunities. • “An Engaged Community” includes creating opportunities to expand public participation, increase communication, and build community post-COVID.
• “Stewardship of City Infrastructure” includesrepairing/replacing outdated city facilities, improving streets, stormwater and wastewater infrastructure and responding to impacts of sea level rise and other effects of climate change.
• “A Healthy and Compassionate Community” includes addressing affordable housing and mental health services, exploring and implementing strategies that relate to homelessness, and supporting community services for all ages.
• “Environmental Sustainability” includes stewardship of parks, urban forests and open space, preserving hillsides and beaches, and adaptation to climate change. • “A Strong City Workforce” includesstrategiesto address employee retention and attraction, work-life balance, engaging staff in decision-making, and celebrating and recognizing staff. • “Maintaining a Safe Community” includes supporting our first responders (police, fire, public works), responding to emergencies, protecting people, property, and businesses, and engaging in emergency preparedness community outreach, public education and prevention activities.

16.b
Packet Pg. 236 Attachment: Attachment B – City Council Goals 2022-23, clean version (4953 : City Council Goals and Priorities for FY2022-23) FY2022-23 City Council Priorities
Proposed April 11, 2022
The following 13 priorities for FY2022-23 are proposed for adoption by the Pacifica City Council on April 11, 2022. This diverse and robust work plan is intended to help fulfill the City Council’s broader goals of Fiscal Sustainability, An Engaged Community, Stewardship of City Infrastructure, A Healthy and Compassionate Community, Environmental Sustainability, A Strong City Workforce, and Maintaining a Safe Community. In addition to these major priorities, the City continues to deliver hundreds of on-going programs and services, the totality of which represents the City’s commitment to deliver exceptional programs, projects, and services to the Pacifica Community.
(Priorities are numbered for ease of reference and not for relative priority)

1. Continue the Beach Boulevard Infrastructure Resiliency Project

2. Continue efforts related to a New Sharp Park Library & Renovated Sanchez Library

3. Complete an update to the Climate Action Plan

4. Complete the Vision 2025 & Beyond strategic financial planning process to articulate a long-term and financially sustainable vision for Pacifica

5. Continue Esplanade Avenue Bluff Erosion Infrastructure Protection Projects

6. Begin Part 2 of the City Tree Program Evaluation

7. Complete the Civic Center facility health and safety rehabilitation and renovation project

8. Prepare a Quarry Site Specific Plan

9. Complete an update to the Wireless Communication Facilities Ordinance

10. Prepare an update to the Housing Element of the General Plan

11. Design and implement a Council conversation with the Community about homelessness

12. Continue to evaluate and implement Economic Development Initiatives focused on Business Assistance

13. Review City Commission and Committee Charters

16.c
Packet Pg. 237 Attachment: Attachment C – City Council Priorities 2022-23 (4953 : City Council Goals and Priorities for FY2022-23) Non-discretionary City Priorities
The following non-discretionary priorities fall into a variety of categories for why they are essential undertakings, such as:
 Regulatory or legal requirement
 Previous or on-going City Council priority
 Continuing Capital Improvement Program (CIP) project
 Organizational improvements
Continuing into Fiscal Year 2022-23
• ARPA Funding Implementation/Strategies
• Pier Repair Project
• SB 1383 Organic Food Waste/Recycling Compliance
• Waste Hauler Franchise Renewal Negotiations
• Labor Negotiations – new MOUs for July 2023
• Anza Pump Station Repair Project
• Playground Replacements
• Processing of PSD Workforce Housing Application
• Local Costal Program Update Processing
• Manor Drive Overcrossing Project
• Adobe Bridge Culvert Project Study
• 2212 Beach Blvd Hotel Site Market Analysis and RFP
• Vegetation Management Grant Implementation
• Preparation for Safe & Sane Fireworks Ballot Measure
• Revenue Measure Analysis and Prep for Potential Ballot Measure • Liberty Garden Assessment and Permitting
• IST Technology Improvements – GIS, ERP, Doc Digitization • PPP w/PSD and Affordable Housing Feasibility Assessment • Short-term Rental Ordinance Re-assessment
On-going/multi-year
• Processing Voluminous PRA Requests
• Processing of Private Development Applications
• Implementation of Paving Projects
• Caltrans/Hwy 1 Projects Coordination
• GGNRA/Mori Point Coordination
• Surf Camp/School Program Implementation
• Economic Development Efforts
• Other CIPs
Completion Anticipated during Fiscal Year 2021-22
• Pandemic Response
• Prep for Return to In-Person Council Meetings
• SB 1383 Organic Food Waste/Recycling – Ordinance adoption • Labor Negotiations – 2021-23 MOUs
• Milagra Outfall Repair project
• Impact Fee Studies
• Processing of 570 Crespi Mixed Use Housing Project
• Bike Park Site Identification
• OSV Ordinance, Safe Parking Permit Program, Lawsuit Settlement • Redistricting Process
• Wastewater Rates Study and Adoption
• Surf Camp/School Policy Adoption
• Building Division Process Improvements
• IST Technology Improvements – CRM, PRA System, Asset Management System, Office 365, FlashVote, ProcureNow

16.d
Packet Pg. 238 Attachment: Attachment D – Other Non-discretionary City Priorities (4953 : City Council Goals and Priorities for FY2022-23)

CITY OF PACIFICA

COUNCIL AGENDA SUMMARY REPORT
4/11/2022
1 SUBJECT:

Fiscal Year 2022-23 Budget Planning Process, Timeline, Long-Term Financial Forecast, and Narrative Budget Report
RECOMMENDED ACTION:

Accept the report, consider and discuss budget strategies recommended by the City Manager and provide feedback and additional policy direction for the preparation of the FY 2022-23 Budget.

STAFF CONTACT:

Kevin Woodhouse, City Manager
[email protected]
650-738-7409
Yulia Carter, Chief Financial Sustainability Officer
[email protected]
650-501-6004
BACKGROUND:

Each year, the City of Pacifica adopts an annual operating budget that reflects the planned activities for the next fiscal year based on the best information available to the City Council and staff at the time of adoption. This narrative report is not intended to provide detailed budgetary numbers for FY2022-23. The next step in the budget process will be a more detailed General Fund budget presentation and subsequent budget public hearings and budget adoption. This report provides Council with the general outline of the budget development process, including timeline, methodology, long-term financial forecast, and strategic priorities for the upcoming year.

Budget Calendar
The annual budget cycle begins each year with the development of budget instructions, including policy directives and a budget calendar in January, and is completed with the budget adoption by the City Council in June of each year. A summary of the tentative budget schedule is as follows:
17 Packet Pg. 239
Pacifica City Council 2
April 11, 2022
This year's budget cycle launched in March with the Council's mid-year review of the FY2021-22 Budget. At that time, the Council reviewed revenues and expenditures and made adjustments that will be factored in developing the FY 2022-23 Base Budget to be presented on May 9.

This report provides the City Council an opportunity to review and discuss the budget strategies recommendations from the City Manager to help guide the development of the proposed Budget for the Fiscal Year 2022-23. This report is referred to as a "Narrative" Budget Report because it conveys in a narrative format guiding strategies for budget development that, if supported by the City Council, will inform the City Manager's recommendations to the Council for the FY 2022-23 budget. Although the Council is not being asked to vote on the recommendations included in this report, staff will track the Council's discussion and questions, which will be helpful to the budget preparation of the proposed FY2022-23 Budget for the Council's future consideration to bring it to adoption in June 2022.

Budget Methodology
The Adopted Budget is achieved after an inclusive and interactive budget development process.

Any budget process aims to reach a balanced and sustainable budget. Last year, staff modified the City's standard budget process to apply a modified zero-based budget methodology to prepare the baseline budget. The modified zero-based Budget is a systematic financial management strategy commonly used by local governments which helps achieve more costeffective delivery of public services.

The Base Budget reflects the current level of services and operations. The Base Budget is not an exact duplication of the prior year's adopted Budget because of actions that the Council may have taken or provided direction that modified the Budget over the course of the year and, most importantly, because of the FY2022-23 Budget assumptions used to develop the base budget.

Although the preliminary Base Budget estimates are being used in the Long-term Financial Forecast, staff will present the complete Base Budget at the next Budget Study session, including the detailed revenue and expenditures assumptions that reflect the current economic conditions and existing service level.

Once the Base Budget is developed, each department will be given an opportunity to request prioritized program changes for service enhancements or reductions to identify any necessary or desirable service increase or reduction options, which combined will reach a balanced and sustainable budget. The City Manager will review department requests and formulate a packaged budget recommendation of service-level changes for the Council's consideration. 17 Packet Pg. 240
Pacifica City Council 3
April 11, 2022
These recommendations for service changes will be based on many factors, including the Council's strategic vision, staffing capacity, and potential impact on the overall City operation and services provided to the Community.

The final budget document will incorporate the City Manager's recommendations and the priorities of the City Council. Throughout the upcoming budget session meetings, Council will have an opportunity to review and consider budget options and provide direction to staff regarding any changes.

The City's budget goals are to achieve a balanced budget with operating revenue equal to or greater than operating expenditures, including reimbursements from other funds for services, including debt service. Under this policy, it is allowable for total expenditures to exceed revenue in a given year to fund capital improvement plan projects or other "one-time" non-recurring expenditures.

Ultimately, the City's financial position and the resources in each fund will determine the level of services and the projects that the City will be able to deliver to the Community in the upcoming fiscal year. Therefore, these services and projects are included in the adopted annual Budget.

Long-Term Financial Forecast
This report also presents the Long-Term Financial Forecast for 2022-23 that was originally presented to the Council in context of the fiscal sustainability analysis as part of the Vision 2025 & Beyond project on February 14, 2022. After completing the mid-year budget review, the Finance staff refined the preliminary 10-year Financial Forecast. Staff will further fine-tune and refine the FY 2022-23 Base Budget before the next Budget session, but this financial forecast provides a general overview of the City's long-term fiscal challenges at the current Base Budget level.

The forecast considers current revenue and expenditure trends at the mid-year mark projected forward. It also adjusts for PERS Retirement and Year 2 labor union MOU expenses, removes limited-term positions in the Budget, assumes annual debt service for the Civic Center Renovation project, does not assume any ongoing General Fund contribution towards the capital improvement program, and reflects a 14% increase in PERS unfunded liability from the prior year. This forecast only projects forward the current level of services and does not take into account any potential revenue measures, service enhancements, or reductions that may be reflected in the final FY2022-23 Budget once it is developed and adopted.

With these preliminary updates, the City's Operating Budget covering ongoing services to the Community will remain in balance during the current fiscal year and the upcoming 2022-23 fiscal year. This is in part due to the availability of American Recovery Plan Act (ARPA) funds that offset losses of City revenues during the Covid pandemic plus the payment of In Lieu Vehicle License Fees from the State. However, these funds will be spent by the end of 2024 and will result in an ongoing structural financial deficit in future years.

Projected Financial Deficit Starting in 2023-24 Fiscal Year The structural deficit exists when the ongoing operating expenditures consistently exceed the ongoing operating revenues. Starting in the third year of the financial forecast, the City will experience a shortfall in funds to maintain the current level of City Services. This shortfall is projected to be $2.1 Million in 2023-24, growing to $2.2 million the following year (2024-25) and reaching $3 Million in FY 2029-30, as summarized in the charts and table below. 17 Packet Pg. 241
Pacifica City Council 4
April 11, 2022
Fiscal Year Projected Deficit
2023-24 (2,089,659)
2024-25 (2,183,836)
2025-26 (2,325,502)
2026-27 (2,634,432)
2027-28 (2,814,438)
2028-29 (2,989,050)
2029-30 (3,013,334)
2030-31 (2,209,028)
2031-32 (2,452,243)
Budget Deficit Impact on General Fund Reserves in Future Years 17 Packet Pg. 242
Pacifica City Council 5
April 11, 2022
If the structural budget deficit beginning in the 2023-24 fiscal year remains unaddressed, the City's unassigned General Fund Reserves will continue to shrink and by FY2026-27 will fall below the Government Finance Officers Association (GFOA) recommendation for government entities of no less than two months of regular general fund operating expenditures. At the same pace, by the FY2028-29, the entire unassigned fund balance would be wiped out.

Maintaining sufficient reserves is necessary for fiscal and operational sustainability, which becomes especially critical in the current uncertain economic situation. Therefore, staff always strives to go above the minimum recommendation for the General Fund's undesignated fund balance. The prospect of it falling below the minimum threshold guidelines presents a significant challenge to maintaining the City's operations and is not sustainable.

The scenario in the chart below is being presented for illustrative purposes only, as the City will be adopting a balanced Budget each year. Therefore, services would have to be dramatically reduced and/or reimagined to balance the Budget if the City's revenue base remains the same.

City Council Annual Goal-setting
On March 25-26, City Council held an annual goal-setting workshop, which allowed the Council to hear directly from community members to gain additional insight into the Community's priorities for budget allocation of resources over the next year and beyond.

At the meeting, the Council reaffirmed previously adopted goals and identified 13 priorities for the upcoming year, as discussed in the Goals and Priorities agenda item tonight.

As part of the separate Goals and Priorities agenda item tonight, the City Council is being asked to adopt their goals and priorities for FY2022-23, which will provide staff with direction on incorporating the City Council-adopted goals and priorities into the budget-development process. Although the goals are long-term and many of the priorities are multi-year projects, the City Manager's recommended budget strategies will help make progress towards achieving results in the upcoming year.

Recommended Budget Strategies and Next Steps
17 Packet Pg. 243
Pacifica City Council 6
April 11, 2022
The Council's input on the following recommended budget strategies will help guide the development of budget recommendations for FY2022-23 that achieve the Council's goals and priorities and continue providing exceptional City services to the Pacifica community. This year's recommended strategies are organized and presented within the framework of the City Council's Goals, as well as referencing specific Council priorities where relevant. ➢ Council Goal: Fiscal Sustainability
Includes investing in economic development to increase revenues, funding a reserve/emergency fund, and being well prepared for grant opportunities.

Recommended Budget Strategies:
• Strategy #1: Fully fund Vision 2025 & Beyond Strategic Financial Sustainability Study.

This study is critical to understanding the City's long-term financial sustainability challenges and to identify strategies to address them. It also includes a robust public engagement component. Staff is working to identify any additional funding necessary to complete the multiple components of this study beyond the $100,000 currently budgeted and will recommend additional funding in the FY2022-23 Budget. • Strategy #2: Utilization of American Rescue Plan Act Funding.

The current FY 2021-22 Budget includes utilization of the first tranche of ARPA funds, which includes a portion of these funds allocated to offset unprecedented revenue losses resulting from COVID-19 and addressing increased operational needs in compliance with Treasury Guidelines for qualified uses. The FY 2022-23 Budget will also require a detailed analysis of the remaining unused portion of ARPA funds from the prior year and policy discussion for appropriate use considerations of the new tranche of ARPA funds potentially to be spread over the qualifying period through December 31, 2024. Staff will include a more detailed memo regarding current ARPA funding utilization, and future recommended uses at the May 9 budget session.
• Strategy #3: Returned ERAF and VLF In-lieu Funding Uncertainties.

The City Council has previously been briefed about the VLF In-lieu revenue shortfall and uncertainties about if/how the state will keep the City whole. A resolution to this significant funding uncertainty is being worked on currently between the cities/county and the state. Returned ERAF funding is critical to the City's one-time funding allocations, such as the Disaster Accounting Fund. And VLF In-lieu revenue is relied on as an ongoing guaranteed revenue source that funds General Fund essential services. Staff will be working on and monitoring potential resolutions to this uncertainty throughout the spring and will include information and recommendations in the Budget as more details become known.
• Strategy #4: Continue to replenish the City's Reserve Funds.

Prior to FY2018-19, the Council approved revisions to the City's Reserves Policy and began funding Reserves. The Reserves Policy states:
"…the City has established certain financial reserves to protect the City against unexpected interruptions in revenues, the vulnerability of State actions, adverse economic conditions, unpredictable one-time costs, and exposure to natural disasters and emergencies."
Due to the decline of the City's revenues because of the pandemic, the City had to utilize reserves to continue funding essential city services and programs. Given the anticipated structural deficit in future years, the City 17 Packet Pg. 244
Pacifica City Council 7
April 11, 2022
Manager recommends continuing to replenish reserves.
• Strategy #5: Develop and implement a funding policy for Unfunded Pension and OPEB obligations.

The City's long-term unfunded obligations have been growing considerably year after year. In 2019 the City established the irrevocable Section 115 Trust with Public Agency Retirement Services (PARS) to start prefunding these obligations, and the Council approved the initial contribution of $200,000. However, the COVID-19 pandemic caused some delays in making this transfer. In 2021 the City made an initial contribution to account for FY 2020-21 and FY 2021-22. However, the City is still behind in addressing this issue systematically, compared to many other Bay Area cities that started prefunding these obligations more than a decade ago. The strategy would include developing the funding policy to identify funding goals and annual contributions to accumulate sufficient assets to finance the retiree healthcare benefits and pension obligations and account for a higher discount rate of return to reduce the book value of the unfunded liabilities. The funding policy should be transparent, reasonable, and flexible considering the City's challenging financial situation, but also consistent and should demonstrate fiscal discipline, commitment, and prudent financial management practices.
➢ Council Goal: An Engaged Community
Includes creating opportunities to expand public participation, increase communication, and build community post-COVID.

Recommended Budget Strategies:
• Strategy #6: Identify specific components of Council Priority Projects that will require increased funding for enhanced public engagement and communication strategies.

Major Council Priority Projects that are not emergency infrastructure repair or maintenance projects are good candidates to design and implement enhanced public engagement strategies. Recent examples include the Home For All sessions, Plan Pacifica, City Tree Program Evaluation Part 1, and the Beach Boulevard Infrastructure Resiliency Project. Enhanced public engagement costs more and takes more time. Numerous Council Priorities for FY2022-23 will benefit from enhanced public engagement, such as the Housing Element Update, City Tree Program Evaluation Part 2, Quarry Site Specific Plan, and Vision 2025 & Beyond, and potentially others. Staff will identify public engagement funding related to each of these efforts and include recommendations in the Budget. ➢ Council Goal: Stewardship of City Infrastructure
Includes repairing/replacing outdated city facilities, improving streets, stormwater, and wastewater infrastructure, and responding to impacts of sea-level rise and other effects of climate change.

Recommended Budget Strategies:
• Strategy #7: Funding for the Capital Improvement Program Staff will identify a variety of potential one-time funding sources, such as State and Federal grant opportunities, unassigned General Fund Balance, and Impact Fee revenue sources to help fund critical infrastructure projects and other one-time priorities. Construction bids for the Civic Center project are currently being evaluated, and the project likely will require additional funding to achieve the Council's vision for this critical facility.
17 Packet Pg. 245
Pacifica City Council 8
April 11, 2022
➢ Council Goal: A Healthy and Compassionate Community
Includes addressing affordable housing and mental health services, exploring and implementing strategies related to homelessness, and supporting community services for all ages.

Recommended Budget Strategies:

There are no specific budget strategies recommended related to this goal other than the operating and project budgets necessary to carry out the completion of the Housing Element Update, the Council conversation with the Community about homelessness, and other core City services and programs that support this goal.
➢ Council Goal: Environmental Sustainability
Includes stewardship of parks, urban forests, and open space, preserving hillsides and beaches, and adaptation to climate change.

Recommended Budget Strategies:

There are no specific budget strategies recommended related to this goal other than the operating and project budgets and grant opportunities necessary to carry out the completion of the Climate Action Plan Update, the City Tree Program Evaluation Part 2, and other Capital Improvement Projects related to solar and electric vehicle charging stations. ➢ Council Goal: A Strong City Workforce
Includes strategies to address employee retention and attraction, work-life balance, engaging staff in decision-making, and celebrating and recognizing staff.

Recommended Budget Strategies:
• Strategy #8: Fund limited-term positions, position reclassifications, and technology improvements to successfully deliver the City's workplan.

As discussed during the City Council goal-setting sessions, the organization is severely understaffed and is carrying a heavy workload. Successful recruitments are an increasing public sector challenge. To confront these challenges and deliver effective and sustainable services, this recommendation entails identifying several limited-term positions, reclassifications, and other technology improvements to assist the conduct of business, along with funding source recommendations. Staff will include a detailed memo regarding these recommendations at the May 9 budget session.
➢ Council Goal: Maintaining a Safe Community
Includes supporting our first responders (police, fire, public works), responding to emergencies, protecting people, property, and businesses, and engaging in emergency preparedness community outreach, public education, and prevention activities.

Recommended Budget Strategies:

There are no specific budget strategies recommended for this goal other than the operating and project budgets and grant opportunities necessary to carry out the programs and services that deliver the essential safety services envisioned in this goal. Financial strategies to ensure adequate resources, coverage and response times for public health and safety and other emergencies are interrelated with the above goals of Fiscal Sustainability, Stewardship of City Infrastructure, and a Strong City Workforce.

To develop a balanced and sustainable budget, staff will further define the strategies above to bring back at future budget sessions. Staff is seeking Council feedback on the budget strategies recommendations. Council's feedback will be integrated into a specific work plan for the upcoming year.
17 Packet Pg. 246
Pacifica City Council 9
April 11, 2022
FISCAL IMPACT:

There is no action or fiscal impact associated with this item. This is an informational presentation seeking Council input to help guide further development of budget recommendations. As reflected in the budget calendar above, staff will be bringing forward the FY 2022-23 Base Budget and more specific budget strategies, policy options, and service change recommendations (if necessary) at future meetings.

ORIGINATED BY:

City Manager's Office
ATTACHMENT LIST:

Attachment 1 - LONG TERM FINANCIAL FORECAST (PDF)
17 Packet Pg. 247

REVENUE
2021-2022
Revised
Budget
2022-2023
Prelim. Base
Budget
2023-2024
Projected
2024-2025
Projected
2025-2026
Projected
2026-2027
Projected
2027-2028
Projected
2028-2029
Projected
2029-2030
Projected
2030-2031
Projected
2031-2032
Projected
Property Tax $ 14,273,769 $ 15,065,100 $ 15,667,700 $ 16,294,400 $ 16,946,200 $ 17,624,000 $ 18,329,000 $ 19,062,200 $ 19,824,700 $ 20,617,700 $ 21,442,400 Vehicle License Fees 3,688,130 5,097,400 5,301,300 5,513,400 5,733,900 5,963,300 6,201,800 6,449,900 6,707,900 6,976,200 7,255,200 Sales Tax 3,017,753 3,108,300 3,201,500 3,297,500 3,396,400 3,498,300 3,603,200 3,711,300 3,822,600 3,937,300 4,055,400 Transient Occupancy Tax 1,695,073 1,712,000 1,754,800 1,798,700 1,843,700 1,889,800 1,937,000 1,985,400 2,035,000 2,085,900 2,138,000 Utility Users Tax 1,868,218 1,905,600 1,953,200 2,002,000 2,052,100 2,103,400 2,156,000 2,209,900 2,265,100 2,321,700 2,379,700 Other Taxes 2,976,138 3,029,400 3,105,100 3,182,700 3,262,300 3,343,900 3,427,500 3,513,200 3,601,000 3,691,000 3,783,300 Department/Program Revenues 8,546,745 7,176,200 7,319,700 7,466,100 7,615,400 7,767,700 7,923,100 8,081,600 8,243,200 8,408,100 8,576,300 Transfer In-Other 2,150,898 2,150,900 2,150,900 2,150,900 2,150,900 2,150,900 2,150,900 2,150,900 2,150,900 2,150,900 2,150,900 Excess ERAF 88,000 88,000 88,000 88,000 88,000 88,000 88,000 88,000 88,000 88,000 88,000 Grants 178,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 ARPA 4,610,518 4,610,505 - - - - - - - - -
Total Annual Revenue $ 43,093,242 $ 44,043,405 $ 40,642,200 $ 41,893,700 $ 43,188,900 $ 44,529,300 $ 45,916,500 $ 47,352,400 $ 48,838,400 $ 50,376,800 $ 51,969,200

EXPENDITURES
2021-2022
Mid-Year
Revised
Budget
2022-2023
Preliminary
Base Budget
2023-2024
Projected
2024-2025
Projected
2025-2026
Projected
2026-2027
Projected
2027-2028
Projected
2028-2029
Projected
2029-2030
Projected
2030-2031
Projected
2031-2032
Projected
Salaries And Benefits $ 26,825,795 $ 28,242,000 $ 29,177,189 $ 30,248,132 $ 31,376,328 $ 32,565,718 $ 33,820,542 $ 35,145,368 $ 36,545,111 $ 38,025,066 $ 39,590,936 Material/Supplies/Maintenance 3,248,698 3,418,100 3,459,326 3,502,568 3,546,350 3,590,679 3,635,563 3,681,007 3,727,020 3,773,608 3,820,778 Contract Services 7,828,046 7,617,500 7,796,438 7,991,348 8,191,132 8,395,910 8,605,808 8,820,953 9,041,477 9,267,514 9,499,202 Debt Service 1,959,943 2,072,081 2,158,906 2,195,487 2,260,592 2,471,425 2,529,025 2,554,121 2,398,126 1,379,640 1,370,527 Op. Transfers Out 139,727 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 Total Annual Operating Expenditures $ 40,002,209 $ 41,489,681 $ 42,731,859 $ 44,077,536 $ 45,514,402 $ 47,163,732 $ 48,730,938 $ 50,341,450 $ 51,851,734 $ 52,585,828 $ 54,421,443 Capital Transfers $ 3,000,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total General Fund Expenditures $ 43,002,209 $ 41,489,681 $ 42,731,859 $ 44,077,536 $ 45,514,402 $ 47,163,732 $ 48,730,938 $ 50,341,450 $ 51,851,734 $ 52,585,828 $ 54,421,443 GF Structural Surplus/Deficit 91,033 2,553,724 (2,089,659) (2,183,836) (2,325,502) (2,634,432) (2,814,438) (2,989,050) (3,013,334) (2,209,028) (2,452,243) Pct. of GF Revenues 0.21% 5.80% -5.14% -5.21% -5.38% -5.92% -6.13% -6.31% -6.17% -4.39% -4.72% Projected Ending Fund Balance $ 16,592,406 $ 19,146,130 $ 17,056,471 $ 14,872,636 $ 12,547,133 $ 9,912,701 $ 7,098,263 $ 4,109,213 $ 1,095,879 $ (1,113,149) $ (3,565,392) Non-Spendable and Assigned $ 9,158,516 $ 9,142,568 $ 9,266,786 $ 9,401,354 $ 9,545,040 $ 9,709,973 $ 9,866,694 $ 10,027,745 $ 10,178,773 $ 10,252,183 $ 10,435,744 Unassigned Fund Balance $ 7,433,890 $ 10,003,562 $ 7,789,685 $ 5,471,282 $ 3,002,093 $ 202,728 $ (2,768,431) $ (5,918,532) $ (9,082,894) $(11,365,332) $(14,001,136) Unassigned balance as % of Op. Exp. 18.6% 24.1% 18.2% 12.4% 6.6% 0.4% -5.7% -11.8% -17.5% -21.6% -25.7% Total Available Reserves (Unassigned +
10% Policy Designation) 11,734,111 14,152,530 12,062,871 9,879,036 7,553,533 4,919,101 2,104,663 (884,387) (3,897,721) (6,106,749) (8,558,992) Available balance as % of Op. Exp 29.3% 34.1% 28.2% 22.4% 16.6% 10.4% 4.3% -1.8% -7.5% -11.6% -15.7% City of Pacifica
Long Term Financial Forecast Table and Assumptions
General Fund
Attachment 1

17.a
Packet Pg. 248 Attachment: Attachment 1 - LONG TERM FINANCIAL FORECAST (4955 : Budget Session 1)

LONG TERM FINANCIAL FORECAST ASSUMPTIONS
The long-term financial model features a set of assumptions for both revenues and expenditures based on conservative projections. The scenario presented represents conservative levels of revenue based on information available now. These projections are preliminary, staff will further refine the figures included in this report as part of the FY 2022-23 Base Budget presentation on May 9, 2022.

Revenue Assumptions

1. Property Tax assumes a 6% annual increase, per assumptions used by HdL, the City's 3rd party tax consultant. This is in line with the past years’ collections and consistent with the anticipated increases in the assessed market value of recently sold properties.

2. Vehicle License Fees (VLF) is tied to property tax growth and so also assumes a conservative 4% annual increase. The FY2022-23 Base Budget includes a backfill of $1.2 million currently owed by the State. However, there are still legislative uncertainties around allocation of VLF and potential threat to Excess ERAF revenues.

3. Sales Tax assumes a 3% increase for FY2022-23 based on recent projections by HdL projections (City’s Sales Tax advisor) and a 3% in the following years considering local economic recovery from the pandemic and continuing growth in online sales.

4. Transient Occupancy Tax assumes a modest 1% increase for the next fiscal year and a 2% increase after that, assuming a gradual return to pre-pandemic travel.

5. Utility Users Taxes (UUT) also assumes a modest 2% increase for the next fiscal year and thereafter, based in increase in utility rates and demand.

6. Other Taxes include Business License, cannabis operations tax. Cannabis Tax showed slight decline at mid-year due to slower than expected business activity. The preliminary forecast includes a moderate 3.5% or $30,000 increase over the midyear estimates.

7. Departmental or Program revenues include building, planning and other permits, recreation revenues, and rentals. This category is projected to increase by 2% based on the current service activity level that is anticipated to continue.

8. No changes were assumed for the General Fund portion of ERAF, which will continue funding the Disaster Fund as per previously approved Council policy, leaving only $88K in General Fund to provide local non-profit grants. Also, nor new ongoing Grants were anticipated as part of the Base..

9. The Operating Transfer In/Out category also remains the same. However, this figure is likely to change once the new Cost Allocation Plan is complete.

Expenditures Assumptions

1. Salaries and Benefits (S&B) projections include the same base level full-time equivalent count citywide and assume an ongoing 2% annual increase in the employee compensation in the future years, consistent with the current Memoranda Of Understanding (MOU) terms and provisions. Other S&B assumptions include the following:
a. FY 2022-23 includes an additional increase due to implementing the second year of the new MOU agreements.

17.a
Packet Pg. 249 Attachment: Attachment 1 - LONG TERM FINANCIAL FORECAST (4955 : Budget Session 1) b. FY 2022-23 assumptions restore the amended FY 2021-22 Budget cuts (including $279K cost-savings resulting from the budgeted delay in filling vacancies) that were done to make the FY2021-22 impacts of new MOU provisions cost-neutral after the original adoption of the budget. c. The Projections also include an anticipated increase in the City’s contribution towards the unfunded liabilities of $0.6M for FY2022-23 and $0.4M in FY2023-24 as per CALPERS Actuarial Reports.
d. The FY2023-24 projections remove all Limited-Term positions, including those funded by ARPA.
e. The FY2023-24 Projections eliminate the one-time 1% Bonus pay funded by ARPA that part of the new labor agreements that went into effect in FY2021-22.

2. Materials, Supplies, and Maintenance Category assumes a very modest 1.25% increase that partially accounts for inflation.
a. FY 2022-23 assumptions restore the amended FY 2021-22 Budget reductions, including $136K operational cost-savings measures implemented by departments this year to make the FY2021-22 impacts of new MOU provisions cost-neutral.
b. FY 2022-23 Projections include reductions related to one-time COVID prevention and sanitation uses of $120K funded by ARPA

3. Contractual Services Category assumes a 2.5% annual increase applied to most City contracts to account for regular CPI increases and inflation. a. FY 2022-23 assumptions restore the amended FY 2021-22 Budget reductions, including $173K in departments’ operational cost-savings measures to make the FY2021-22 impacts of new MOU provisions cost-neutral.
b. FY 2022-23 Projections are reduced by $460K related to Economic recovery, homelessness, and other one-time uses funded by ARPA

4. Debt Service Expense Category is projected in accordance with the City’s updated debt service schedule and includes the new Civic Center debt financing.

5. Operating Transfers Category remains the same for the future years. However, staff will be changing the accounting allocation as part of the Base Budget development for the internal funds to accurately account for the insurance premiums in the General Liability and Worker Compensation funds. This will likely increase the General Fund transfers out to these funds.

6. Capital Transfers Category. The Financial Outlook does not assume any ongoing General Fund contribution towards the Capital Improvement Program (CIP). However, some General Fund contribution for CIP is likely to be required every year based on the Council’s strategic priorities and discretion.

17.a
Packet Pg. 250 Attachment: Attachment 1 - LONG TERM FINANCIAL FORECAST (4955 : Budget Session 1)

Pacifica City CouncilApril 11, 2022

Pacifica City Council
April 11, 2022