City of Santa Rosa
City Council Priority Setting Workshop
Bennett Valley Golf Course, Santa Rosa
March 9 and 10, 2023
Nancy Hetrick, Managing Director
Ashley Garcia, Consulting Manager
2 Welcome from Mayor
Natalie Rogers
Public Comment
Objectives
4 Agree on ways to
make progress on our priorities
Consensus on a set
of priorities for FY 2023-24
Ground Rules
5 Listen to
understand
each other’s
point of view
Assume
good
intent
Speak up if we
need course
correction
Seek
consensus
Stay
focused
Bike Rack
6 Time Management Tool
Items to discuss later
Agenda
7 Thursday
• Welcome and Opening Comments
• Fiscal and Other Updates
• Financial outlook
• ARPA/PG&E funds update
• CIP and Infrastructure
• Annexation
• Departmental Updates on Strategic Goals
• Celebration of Accomplishments
• Working Together to Achieve Results
• Identification of Priorities
Friday Morning
• Recap Thursday’s Outcomes
• Wrap up and Next Steps
8 Opening Remarks
from City Manager
Maraskeshia Smith
Feedback Tool
9 Instructions
1. Please take out your mobile device
2. Enter www.menti.com in your browser
3. Click Join a Presentation
4. Enter 8-digit access code: 8372 1216
5. Click Submit button
www.menti.com code: 8372 1216
10 Fiscal and Other Updates
Financial Outlook
Budget Overview
13 The City's financial structure is made up of over
100 funds, Including:
General Fund
Enterprise Funds
Special Revenue Funds
Capital Improvement Program
FY 22-23 City Budget is $478.8 Million
Operations and Maintenance:
$410.4 Million
Capital Improvement Program:
$68.4 million
FY 22-23 GF Budget $199.8 Million
Operating Expenditures: $190.3 M
Capital Projects: $5.3 m
Transfers: $ 4.2M
FY 2022-23 Citywide Expenditures by Fund Type
14 FY 2022-23 General Fund Revenue by Category
15 FY 2022-23 General Fund Expenditures by Category
16 FY 2022-23 General Fund Expenditures by Department
17 Positives
• Balanced GF Budget for FY 22-23
• Reserves above mandated Council
Policy
• Established Fiscal Stability Reserve
• Established Pension Stabilization Fund
Known Funding Gaps
• ARPA-funded programs shift to General
Fund
Homeless Services, Safe Parking, inRESPONSE
• Hearn Community Hub
Construction
Annual Maintenance and Operations
• Deferred Facility Maintenance
Labor Contracts expire June 30, 2024
$25M GF Sales Tax sunsets in 2031
18 Challenges Ahead
Guiding Principles
• Proactive fiscal approach – minimize reactionary decision making
• Long-term planning – providing fiscal and service stability • Realistic forecasting – not overly conservative or optimistic • Transparency – not afraid to show our work
• Communication – provide information to Council, Departments, and Labor Groups
19 Long Range Financial Forecast
20 FY 22-23
Budget
Revenues 197.5
Transfers In 2.3
Total Revenues & TI 199.8
Expenditures 190.3
Transfers Out 9.5
Total Expenditures & TO 199.8
Surplus (Deficit) -
$393K General Fund
Subsidy to Golf
Course
$389K General Fund
Subsidy to Golf
Course
15% growth for Gas
and Electricity
FY 23-24
198.9
2.3 FY 24-25
203.4
2.4 (3.2)
205.8
204.3
6.3 210.6
(4.8)
201.2
198.3
6.0 204.3
(7.6)
FY 26-27
213.4
2.5 215.9
215.4
9.2 FY 25-26
208.0
2.4 210.4
209.0
224.6
(8.7)
9.0 218.0
Additional $100K
for Fire Wellness
Program - ongoing
ARPA funds for
Homeless Services
expire, +$2M
annual Transfer Out
ongoing
?
QUESTIONS
ARPA Funding Update
PG&E Funding Update
?
QUESTIONS
CIP and Infrastructure
Sample of Citywide Assets
26 627 Miles of Water Mains
29,269 Water Valves
23 Reservoirs
339 Miles of Storm Drain
17,680 City-maintained Structures
94 Miles of Creeks and Culverts
6,507 Hydrants 597 Miles of Sewer Mains
12,392 Sewer Manholes
17 Sewer Lift Stations
109 Parks (1,036 Acres)
Playground Equipment,
Picnic Tables, Grills
214 Traffic Signals
81 Pedestrian Flashers
Miles of Road:
512 Centerline Miles
1,134 Lane Miles
116 City-Owned Facilities
City Hall, Fire Stations, Public Safety
Building, Finley Community Center Laguna Treatment Plant
CIP FY 2022-23 Funding Sources
27 Total
$68,408,642
Regional- Bond Funded
$30,000,000
Water
$13,790,000
Wastewater
$12,730,000
Regional
$8,000,000
TPW- Special Funds
$16,693,771
TPW- Parks
$4,875,957
Infrastructure
Drinking
Water Waste-
water
Regional
Water
Reuse
Storm-
water
Transit
RoadsBridges
Parks
Dams
Broad-
band
Facilities
Property
Citywide
Assets
Total Value
$10 Billion
A = Exceptional, Fit for the Future
B = Good, Adequate for Now
C = Mediocre, Requires Attention
D = Poor, At Risk
F = Failing/Critical, Unfit for Purpose
Category 2021 ASCE Report
Card (National)
2019 ASCE Report
Card (California)
2022 City
Report Card
(Santa Rosa)
Drinking Water C- C B
Wastewater D+ C+ C+
Regional Water Reuse - - D+
Stormwater D D+ Unknown
Transit D- C- C+
Roadways D D C
Bridges C C- C+
Parks & Recreation D+ D+ C-
Dams D C- B
Building Facilities (schools) D+ C C
A = Exceptional, Fit for the Future
B = Good, Adequate for Now
C = Mediocre, Requires Attention
D = Poor, At Risk
F = Failing/Critical, Unfit for Purpose
Category
2022 City
Report Card
(Santa Rosa)
Annual Deficiency
Drinking Water B $20,000,000
Wastewater C+ $29,000,000
Regional Water Reuse D+ $17,000,000
Stormwater Unknown Unknown
Transit C+ $1,250,000
Roadways C $6,000,000
Bridges C+ $2,000,000
Parks & Recreation C- $5,000,000
Dams B Unknown
Building Facilities C $9,300,000
31 C02382 Public Safety Building Generator Replacement Sep-21 $900,000 C C02284 West College Storage Facility Pumping Improvements Nov-21 $1,111,453 C C02400 Santa Rosa Water Reuse System On-Call Phase 7 Jan-22 $333,000 C C02248 Six Fire Damaged Parks - Recovery Jan-22 $1,400,000 C C02401 Santa Rosa Water Reuse System On-Call Phase 8 Jan-22 $333,000 C C02402 Santa Rosa Water On-Call Phase 19 Jan-22 $333,000 C C02300 Fire Damaged Roadway Landscaping Feb-22 $6,009,000 C C02117 Fulton Rd. Sewer Main Improvements West 3rd St to Santa Rosa Creek Feb-22 $1,011,192 P C01178 Fulton Rd from Guerneville Rd to Piner Rd-Widen to Four Lanes Mar-22 $14,300,000 C C00327 Terra Linda & Buena Vista Sewer & Water Replacement-Phase 1 Mar-22 $1,777,141 C C00284 Laguna Treatment Plant Disinfection Improvements Project Mar-22 $68,109,000 C C02041 Cleveland Ave & St Rose District Sewer & Water Improvements Apr-22 $1,772,965 C C02052 Controller & Radio Upgrades at Water Pump Stations & Sewer Lift Stations Apr-22 $1,650,282 C C02311 Crosstown Trunk Lining - 3 Segments Apr-22 $1,802,749 C C02405 Santa Rosa Public Works On-Call Phase 1 May-22 $388,000 C C02111 Geysers-Delta Connection Improvements Jun-22 $1,456,610 C C02200 Delta Pond Diffuser Maintenance Jun-22 $580,000 C C02388 Public Safety Building Hydronic Pipeline Replacement Jun-22 $425,000 C C01978 LTP Waste Gas Burner Replacement Jun-22 $2,161,800 C C02089 Santa Rosa Pavement Rehab of Various Streets Jul-22 $2,441,000 A C02411 2022 Pavement Markings Sep-22 $75,000 C
C = In Construction
B = Ready to Bid
A = Awarded
D = In Design
P = Pending Scoping or Staff
32 C02188 Parking Garage 12 Elevator Modernization Dec-22 $600,000 A C02184 Fire Station 5 Resiliency & Relocation Jan-23 $16,000,000 A C01620 Santa Rosa Avenue Corridor Improvements Feb-23 $2,000,000 B C01903 Los Alamos Trunk Replacement: Streamside Dr to Elaine Dr Mar-23 $5,500,000 B C02061 Water Pump Station 1 Retaining Wall Mar-23 $157,115 D C02256 Backup Generators-Water and Wastewater Facilities Mar-23 $7,789,000 B C02259 Dotti Farm Recycled Water Pipeline Improvements Mar-23 $1,210,000 B C02262 Sonoma Ave Pavement Rehabilitation-E St to Bobelaine Dr Mar-23 $2,750,000 B C02290 Rock Creek & Matanzas Water & Sewer Main Replacement Mar-23 $4,305,175 D C02383 Roseland Pavement Maintenance-2022 Mar-23 $600,000 B C02393 Kawana Springs Community Park Gardens Mar-23 $1,061,726 B C02403 Llano Trunk Lining-Subregional Portion Mar-23 $3,687,167 D C02424 Pavement Preventative Maintenance - 2023 Apr-23 $1,000,000 B C02336 Finley Aquatic Center May-23 $3,062,120 B
C02383 Roseland Pavement Maintenance - 2022 May-23 $1,000,000 B C00203 Albany, Clement and Malano Sewer & Water Replacements Jun-23 $2,581,992 D C01521 Mendocino Ave - Dawson Rd Sewer Replacement Aug-23 $1,100,000 D C01684 E. Haven Dr Sewer & Water Improvements-Eleanor Ave to E Foothill Dr Jun-23 $2,978,714 D C = In Construction
B = Ready to Bid
A = Awarded
D = In Design
P = Pending Scoping or Staff
33 C01999 Cobblestone Dr Zone R2-R4 Water Main Connection Jun-23 $1,504,340 B C02114 Robles Trunk Lining Phase 1 Jun-23 $7,017,411 D
C02261 Sonoma Ave Pavement Rehabilitation-Farmers to Haman Jun-23 $1,505,000 D C02338 Fire-Damaged Tree Removal-Parks, Open Space, ROW Phase 3 Jun-23 $200,000 D C02395 Transit Mall Roadbed Rehab Jun-23 $1,000,000 D
C00720 Hearn Ave at Highway 101-Phase 3 Rebuild Interchange Jul-23 $27,000,000 B C01102 Santa Rosa Creek Trail Access @ Dutton Aug-23 $550,000 D C02212 Seismic Upgrades & Improvements Phase 5-R9A, R16 & R17 and VFD and Fire Pump Additions at S16 & S17 Oct-23 $9,943,816 D
C02258 Coffey Park & Fountaingrove Neighborhood Road Disaster Recovery Oct-23 $17,000,000 D C02264 Downtown High-strength Slurry Oct-23 $260,000 D
C02408 Bst & 3rd Right Turn Lane Oct-23 $1,200,000 D
C02417 Emergency Operations Center Nov-23 $1,000,000 P
C00544 LTP Flood Protection Mar-24 $5,686,000 D
C01805 Oakmont Treatment Plant Sewer Trunk Location Mar-24 $1,172,600 D C02365 Sam Jones Hall - Phase 2 Mar-24 $3,000,000 D
C00769 Highway 101 Bike/Pedestrian Overcrossing Jun-24 $25,000,000 D C02263 Calistoga Road Reconstruction Feb-25 $4,000,000 P C02406 Hopper Avenue Corridor Feb-25 $6,000,000 P
C = In Construction
B = Ready to Bid
A = Awarded
D = In Design
P = Pending Scoping or Staff
?
QUESTIONS
>
STRETCH
BREAK
Annexation
Annexation
Opportunity
South Santa Rosa
37 Annexation of unincorporated areas in south Santa Rosa - South of Hearn and Yolanda Avenues, along both the
west and east sides of Hwy 101 and within the UGB
Moorland
Industry West
Todd Creek/2010 Area
South Santa Rosa Avenue
• Area - 1,404 acres
• Population - 6,494 persons
• 2,038 residential units
• 410 commercial units
• 61 vacant parcels
Annexation
Opportunity
All Santa Rosa
38 Annex all unincorporated areas within the
City’s UGB, including the South Santa Rosa
area, plus all County islands and fringe areas
within UGB
• Area – 3,647 acres
• Population – 10,845 persons
• 3,845 residential units
• 426 commercial units
• 174 vacant parcels
Annexation Estimated Revenue
TOTAL POTENTIAL REVENUE: $6.5M per year
• Sales Tax: additional $5M in sales tax revenue estimated per year for both Annexation areas
• Property Tax: Potential additional $1.5M in Property Tax revenue; 2010 Study area, assuming new 1,500 SFR and low-density MFR
• No property tax estimate available for all Santa Rosa annexation area 39 South Santa Rosa Annexation Costs
40 All Santa Rosa Annexation Costs
41 Annexation Process – Staff Costs/Capacity
42 CITY-INITIATED ANNEXATION
• 100% hard & staff costs paid by City; All consultant costs plus 0.5 FTE Senior Planner for 3 years – will require general fund
• PED – lead effort and preparation of Annexation Boundaries, Plan for Services, Community Engagement, Pre-Zoning, Public Hearings and LAFCO application; and manage consultants in preparation of an Environmental Impact Report • CMO – lead city/county MOU negotiations
• TPW – Prepare survey maps and legal description of boundaries • All - Prepare a Plan for Services
• Manage consultants and/or prepare sections of plan for services internally South Santa Rosa
Specific Plan
43 City-initiated Santa Rosa Ave Priority Development Area (PDA) Specific Plan & Environmental Impact Report (EIR) • City-led Planning/Pre-Zoning effort can be decoupled
from a city- or applicant-initiated annexation effort
• Prepares for future integration and intensification of area through annexation and utility certificates
• Once adopted, serves as a major streamlining and
funding tool for addressing annexations, public
infrastructure and transit-oriented development
• Area - 1,900 acres (500 acres are in City Limits)
• Applied for a $1.2 Million grant through MTC
• RFP - 2023; Specific Plan & EIR – 2024-2026 (2 yrs)
Specific Plan Process – Staff Costs/Capacity
44 CITY-INITIATED SPECIFIC PLAN & EIR
• Potential $1.2M state grant; grant can support the 0.5 FTE Senior Planner needed for 2 years; however, funds may restrict scope or boundaries • Assuming completion of the GP Update by Dec 2023;
• RFP/Contract – Jun-Dec 2023
• Specific Plan & EIR – Jan 2024 to Jan 2026
• PED – 0.5 FTE Senior Planner for 2 years to lead project and manage consultants of a Specific Plan and Environmental Impact Report
• All – participate in up to five Technical Advisory Committee meetings • All – review of Admin Drafts for Plan and EIR
• All – participate in community engagement events
Discussion
Departmental Updates on Strategic Goals
>
LUNCH
TIME
Celebrate Accomplishments
Key Accomplishments
• Secured more than $53M in federal and state funding
• Reauthorization of City’s Public Safety Special Tax
• Passed a balanced budget for FY 2023
• Created Pension Stabilization Fund
• Successfully ran 2022 City Council election
• Facilitated Hearn Community Hub community engagement
• Completed first prescribed burn
• Completed response time analysis
• Opened Safe-Parking Site – serving 130 individuals
• Adopted Five-Year Homelessness Solutions Strategic Plan • Adopted Gas Station Ban Ordinance
• Supported housing production
49 Key Accomplishments
• Hired 375 Employees
• Implemented online, self-service benefits enrollment system (BCC) • Launched MySantaRosa app
• Cyber Security Analysis
• Implemented Pro-active Plan to Eliminate Sideshows
• Prioritized Principles of Community Policing
• Selected Operator for Bennett Valley Golf Course
• Completed agreement with Pecos League
• Rolled out battery-electric buses
• Lower Colgan Creek Restoration Project
• Ultraviolet Disinfection Project
• Cleared 4,187 cubic yards of debris from the public Right of Way, removed 9,376 graffiti tags, filled 4,826 potholes, applied 257 pavement markings, and installed 1,735 street signs • Launch of Clean Santa Rosa
50 ?
DISCUSSION
What stands out to you about the accomplishments?
What are you most proud of?
Working Together to Achieve Results
?
DISCUSSION
What qualities describe an exceptional City Council?
What Makes
a Council
Work Well?
54 Institute for Local Government
Effective Councils
Unity of
Purpose
Clear Roles and
Responsibilities
Positive
Governance
Culture
Norms,
Protocols, and
Policies
Effective Decision Making
• Subcommittees
• Ad hoc committees
• Study sessions
• Community listening sessions
• City Manager one-on-one updates
• Regular updates with the Mayor
• Council packets
• Ongoing training and professional development
55 Effective Use of Ad-hoc and Sub-committees
56 How do you ensure
committees add value?
What is the appropriate scope
and time frame for ad-hoc
committees and
subcommittees?
BREAK
Priorities Discussion
“Big Rocks”
59 Don’t fill up the bucket
with so many small
rocks that there isn’t
room for the big ones
Put the big
rocks in first
Then add the small
ones where there is
room
How
Management’s
Time is
Allocated
60 85%
5%
5%
5%
Management’s Time
Day-to-day management of municipal services
Unforseen challenges
New initiatives
Strategic improvements and training
Today’s Process:
Council
Discussion and
Consensus about
Top Priorities
61 Reviewed accomplishments and
context for setting priorities
Identified what is already planned
and underway
Discuss current strategic goals and
other items of interest to
Council
Council dot voting to determine top
priorities
Staff will incorporate into budget
and work plans
Interview Themes
• Stay the course; continue work that is underway; focus on what we can achieve
• Focus on the basics/core services
• Care and feeding of good governance
• Organizational health - Fiscal stability; securing funding; long-term planning; recruitment and retention
• Community engagement and operating across districts
• Priority themes:
• Housing and Homelessness
• Infrastructure
• Economic development – downtown, railroad square, Roseland • Organizational effectiveness
62 Interview
Themes
Strategic Goals
63 • Pursue housing options for residents of all income levels.Deliver housing for all • Partner with key stakeholders to offer housing and support services to the unsheltered and address the issues and causes of homelessness.
Reduce Homelessness and its
impacts
• Ensure the public’s safety by engaging residents and using a broad range of proactive approaches.
Ensure a healthy and safe
community for all
• Sustain and develop a diverse and thriving economy that benefits Santa Rosa residents and businesses and contributes to the community’s economic health.
Promote economic and
community vibrancy
• Invest in and maintain infrastructure that supports environmental sustainability and supports a vibrant City.
Build and maintain sustainable
infrastructure
• Create a high performing organization that is proactive; fiscally sound; promotes diversity, equity and inclusion; and reliably delivers outstanding services to the community.
Achieve organizational
excellence
Deliver Housing for All
Strategies
• Update the City’s Housing Action Plan to address ongoing unmet housing needs - facilitate housing options/supply for all
• Reduce barriers to ownership and access to housing opportunities through education, awareness and financial assistance
• Encourage higher density housing development in the downtown, expand options of housing stock
• Encourage innovation in achieving increased inclusionary housing • Streamline the approval process; be nimble and quick
64 Reduce Homelessness and its Impacts
Strategies
• Maintain the City’s commitment to the Housing First Strategy in partnership with the Sonoma County Continuum of Care (Home Sonoma County)
• Fund programs that enable emergency shelter and deliver individualized assistance to people experiencing homelessness
• Support temporary housing options like the Safe Parking Pilot Program • Invest in prevention and intervention programs to prevent vulnerable individuals from becoming homeless
• Improve and expand coordinated outreach and engagement (i.e., Homeless Outreach Services Team, Downtown Enforcement Team)
• Use a compassionate approach to address the health, safety and shelter needs of those living in encampments and ease the impacts on surrounding communities • Rely on evidence-based or best practices
65 Ensure a Healthy and Safe Community for All
Strategies
• Increase community partnerships, engagement and the accountability for law enforcement through an equity lens
• Utilize data driven strategies and tactics to deploy resources and reduce crime • Engage neighborhoods
• Develop and implement strategies for mental health response • Invest in prevention and intervention programs
• Implement the Fire Resiliency and Response Strategic Plan 66 Promote Economic and Community Vibrancy
Strategies
• Develop business incentives and tools for underserved neighborhoods • Promote open dialogue with education partners to improve quality of life, increase literacy, and work together to connect students to potential career paths in public service • Engage private employers and the business community in workforce development and job placement
• Support and engage local businesses and workers - convene a business summit to engage/ask to understand business community needs and promote prosperity • Establish Santa Rosa as a desired destination for business • Create spaces for residents to gather, learn and connect • Support access to childcare, including preschool and early childhood support and recreational and summer camp programming
• Encourage public-private partnerships
67 Build and Maintain Sustainable Infrastructure
Strategies
• Be responsive and competent stewards of public infrastructure and the environment • Establish policies that support environmental sustainability in building and infrastructure investment to facilitate carbon neutrality (electric fleet, bikeways, SWOT analysis of PG&E independence)
• Safeguard the City’s assets by anticipating, planning and allocating resources for infrastructure upgrades and replacement as needed (roads - set a policy threshold for desired PCI)
• Educate the public about water usage impacts and long-term water-saving strategies to meet conservation goals
• Enable movement within and around the city to reduce reliance on vehicles • Complete solid waste system improvements (engage businesses) • Adopt Climate Action Plan update
• Finalize the Roseland Creek Community Park Master Plan 68 Achieve Organizational Excellence
Strategies
• Sustain fiscal health by maintaining reserves, forecasting impacts of budget choices, monitoring revenue trends, maintaining competitive salaries for employees, and creatively leverage other funding sources
• Plan for asset and technology maintenance needs (i.e., streets, facilities, technology, capital assets, adjust facilities for gender accommodation, include supporting cost for public safety, such as recreation, sheltering, water, building safety, etc.) • Utilize data driven strategies and tactics
• Implement process improvements and best practices that prioritize customer experience (i.e., multilingual approach to website as the portal to the city) • Invest in staff training and professional development • Create a culture of that cultivates diversity, equity, inclusion, safety and belonging • Optimize organization structure to strengthen teamwork through interdepartmental collaboration to deliver results
69 Dot Voting
on Top
Priorities
70 Wrap Up and Review Tomorrow’s Agenda
www.menti.com code: 8372 1216
72 In one word,
please describe
today’s session…
Day 2 – Council Workshop
Friday Agenda
• Reflections to the prior day
• Recap of Council Priorities
Questions and Discussion
• Staying on Track to Achieve Results
74 Commitments
from Staff
75 Develop work plan to align with Council
priorities
Build budget proposal consistent with
Council priorities
Build Council direction into budget
Staying on
Track with
Priorities
76 Regular
progress
reporting
Hold off on new Council
initiatives until next goal
setting cycle or mid-
cycle in the budget
Best Practice
Criteria for
Adding
Initiatives and
Projects
Mid-Cycle
77 Emergency
(natural disaster,
pandemic, civil
unrest)
New outside
funding
opportunity that is
time sensitive
New multi-agency
opportunity that
cannot be delayed
Community safety
issue that must be
addressed in near
term
Changes in
laws or
mandatesOtherwise wait until
next priority-setting
process
What comes
off the plate if
something
goes on?
What are the
consequences
of shifting
direction mid
way?
Next Steps
78 Baker Tilly
prepares
workshop
report
City
Manager
reports on
progress
Staff
incorporates
priorities into
FY 2023-24
budget
Closing Comments
Evaluation Form
Thank You!
81 Nancy Hetrick, Managing Director
[email protected]
Ashley Garcia, Consulting Manager
[email protected]