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HomeMy WebLinkAbout3.1 - MemoMarch 22, 2022 TO: Mayor and Town Council Chair and Planning Commission Design Review Board FROM: Joseph Calabrigo, Town Manager SUBJECT: Joint March 22 Town Council and Planning Commission/DRB Study Session Attached are the agenda and information for the joint Town Council & Planning Commission/DRB Study Session planned for Tuesday, March 22 at 4:00 p.m. This meeting will occur via Zoom. The Study Session is envisioned as an opportunity to inform and update the Council, Commission, and Board on highlights from the past year and other relevant topics. The Commission has been fully engaged in the process preparatory to the development of the new 2023-2031 Housing Element Update and all of the Town’s Commissioners and Board members participated in the March 7 Workshop aimed at informing the development of the new Downtown Master Plan. This Study Session is intended to allow time to discuss these or other issues of interest to the Commission and Board or to ask questions of the Town Council or staff. Background materials provided include a mid-year financial overview for the Town, along with information that was presented at the annual Town Council Planning and Goal Setting Workshop which took place on February 11, 2022; including 1) a summary of 2021 Highlights and Outcomes, 2) the summary notes from that same workshop, and 3) the 2022 Planning Commission and DRB Report and Summary. In addition to the Council and Commission, the meeting will be attended by Town staff that supports the Council, Commission, and Board. If you have questions in advance of the Study Session feel free to contact me at jcalabrigo@danville.ca.gov, or Chief of Planning David Crompton at dcrompton@danville.ca.gov. We look forward to seeing you on Tuesday! Attachments: A – Mid-Year 2021/22 Operating Budget and Capital Improvement Program Status B – 2021 Highlights and Outcomes C – 2022 Annual Town Council Planning and Goal Setting Workshop Meeting Notes and Outcomes 1 March 22, 2022 TO: Mayor and Town Council Chair and Planning Commission Design Review Board FROM: Joseph Calabrigo, Town Manager SUBJECT: Mid-Year 2021/22 Operating Budget and Capital Improvement Program Status The Town’s Operating Budget is the annual plan for service delivery that focuses on services, programs, and activities that are prioritized by the Town Council to meet the Town’s mission, which is “To provide superior municipal services that make people’s lives better.” The Capital Improvement Program (CIP) is the Town’s capital budget. The CIP identifies high-priority current and future capital needs and identifies potential sources of funding. On June 15, 2021, the Town Council adopted Resolution 29-2021, approving the 2021/22 Operating Budget and setting the 2021/22 Appropriation Limit; and Resolution 30- 2021, approving the 2021/22 through 2025/26 Capital Improvement Program. The following memorandum provides a high-level summary of the Town’s fiscal condition at the mid-point of the 2021/22 fiscal year. The Town’s overall financial condition remains excellent with overall revenues exceeding the budget forecast and expenditures tracking closely with the approved 2021/22 Operating Budget. BACKGROUND The onset of the global Coronavirus pandemic in March 2020 created significant economic uncertainty for local governments. Over the subsequent two years, the Town took decisive action to ensure that the Town’s fiscal condition would remain strong. This included taking steps to reduce operating and capital spending by $7.5 million over two years, in anticipation of the fiscal impacts that were expected to result from the pandemic. These actions included staffing reductions. As part of this process, revised revenue forecasts anticipated that economic recovery would require two to four years. ATTACHMENT A 2 From a service delivery standpoint, the Town prioritized ongoing support of local businesses, uninterrupted service delivery, and public safety. The prompt and decisive course-correcting steps that were taken by the Town proved critical to navigating the economic impacts of the pandemic upon Town operations. Several additional factors contributed to facilitating the Town’s economic recovery. Most significantly: •Continued appreciation in property values which have yielded increased property tax revenue. •Significant growth in online commerce, generating new sales tax that has partially offset sales tax losses from local brick and mortar businesses. •Robust building permit activity as owners continued to reinvest in their homes and properties. •Federal assistance received by the Town in the form of the 2020 Cares Act and the American Rescue Plan Act of 2021 (ARPA). Initial expenditure reductions enacted by the Town combined with these additional factors have subsequently resulted in a two-year fiscal recovery for the Town. OPERATING BUDGET As of December 31, 2021, overall revenues are tracking ahead of the approved budget, while expenditures are on track to finish the fiscal year within budget. Overall fiscal condition remains strong, and the Town expects to finish the year on a positive note. Revenues Total revenues of $35.8 million were forecast for 2021/22. General Fund - A total of $26.2 million in revenues were forecast for the year and current receipts are tracking positively compared to budget. The Town’s largest revenues are Property Tax and Sales Tax, forecast at $15.2 million and $5.25 million respectively. Both sources are exceeding budget forecasts and are expected to close the year on a positive note. Among other significant General Fund revenues, Property Transfer Taxes are expected to exceed budget forecasts, while Business License Tax, Franchise Fees, and Recreation Fees and Charges are expected to meet the forecast. Special Revenue- A total of $9.6 million in Special (Restricted) Purpose Revenues were forecast for the year and current receipts are tracking positively compared to budget. Gas Tax, Building and Planning, and Measure J Return to Source revenues are exceeding the budget forecast, while Solid Waste Vehicle Impact Fees, and Lighting and Landscape fees are meeting budget forecasts. Successor Agency Successor Agency revenues are meeting the budget forecast. 3 Revenue Summary Barring any significant unforeseen expenses, total revenues for 2021/22 are expected to comfortably exceed the budget forecast by year-end. Expenditures Total operating expenditures of $32.4 million were approved for 2021/22. Service delivery is provided through six operating departments. Expenditures in General Government, Police Services, and Administrative Services are tracking within budget. Mid-year budget adjustments were approved for the following departments: • Development Services - to hire consultant help to offset reduced staffing in Building, Planning, and Engineering. • Maintenance Services – to offset increased electricity and gasoline charges; and • Recreation, Arts & Community Services to partially restore cuts made at the beginning of the year by funding temporary salaries, additional contracted services, and contract instructor fees to allow for resumption of in-person programming. Mid-year expenditure adjustments totaled $425,000, representing a cumulative increase of 1.27%. CAPITAL IMPROVEMENT PROGRAM The Town’s Capital Improvement Program (CIP) identifies, prioritizes, and funds capital projects that address current and long-term community needs. Since 2000, Danville has invested $163.3 million on capital projects that have benefitted the community in numerous ways, an average of $7.8 million annually. Projects have been accomplished without the use of special taxes, assessments or debt. Project highlights from the past year include: • Completing construction of the Brookside Drive ADA Improvements Project, including installing 34 ADA access curb ramps. • Completing installation of Phase I of the Town-wide Traffic Signal Controller Upgrade. • Completing the Town-wide Bridge Preventative Maintenance Plan allowing maintenance for Town bridges to be eligible for federal reimbursement. • Completing the design work and awarding a construction contract for the 2021/22 Rubberized Cape Seal Project. 4 • Completing construction of the San Ramon Creek pedestrian bridge project connecting Diablo Road and the Riverwalk residential development to the Town Green. • Completing the Town-wide Bicycle Master Plan. • Starting construction on the Town Office Relocation project which will relocate the Town Offices and Police Department into new facilities located at 500 La Gonda Way. Looking forward to 2022, major new or ongoing projects include: • Completing construction and relocating the Town Offices and Police Department to 500 La Gonda Way. • Continuing environmental and design work for the Diablo Road Trail project. • Constructing drainage improvements and modifications for Westridge Drive, Loch Lomond Way and Starview Drive. • Continuing work on the new Town-wide Storm Drain Master Plan. • Continuing design work for the La Gonda Way bridge replacement project. • Continuing with the Town’s proactive Pavement Management Program to maintain a positive pavement condition index (PCI) of 80+. • Constructing the Camino Ramon Improvements project. • Constructing the San Ramon Valley Boulevard Improvements project (North and South). To date in 2021/22, the Town Council has transferred $12,840,642 from the General Fund and the American Rescue Plan Act into the CIP. Total funding appropriations of $13,234,573 have been approved to fund or partially fund 38 separate projects. Project Status A total of 66 CIP projects are currently active and in various stages of design or construction, of which 28 are considered ongoing capital maintenance projects. Following is a status update on some of the higher priority capital projects: • A–362 Downtown Improvement Project: This project includes funding to undertake a new Downtown Master Plan which is currently in progress. The Master Plan will identify improvements necessary to further activate the public spaces downtown. • C-610 Pavement Management Program: The upcoming rubberized cape seal project will treat 54 public streets (a total of 7.3 miles) at a cost of $1,771,572. A Town-wide PCI of 83 is projected upon completion of the project. • A-608, 613 & 614 – Starview Drive, Loch Lomond & Westridge Trash Rack Modifications: Construction of these projects will be completed prior to winter 2022, at a total estimated cost of $564,000. A FEMA Hazard Mitigation Grant has been secured and will fund 75% of the project. 5 • B-616 – Multi Sports Skatepark: This project is planned adjacent to the children’s play area at Diablo Vista Park. Design and construction are respectively planned to occur in 2022/23 and 2023/24. • B-626 - Town Office Relocation: Construction of tenant and site improvements is currently underway. Occupancy of the building will occur in two phases; Police Department by May 1 followed by the Town Offices by September 1, 2022. A total of $25.7 million has been appropriated to complete the project. • B-628 - Town Green and Arts District: This project includes improvements to activate the Town Green and Arts District on Front Street, including a larger stage, seating options, musical garden, climbable art, creek walk enhancements, maker space, and gateway monuments. • B-629 – Arts District Maker Space: A companion project to project B-628, this project includes acquisition of the property at 282 Front Street from Town’s Successor Housing Agency. • C-055 – Diablo Road Trail: Currently in the environmental review stages, this project will construct a paved 0.9 mile Class I pedestrian/bicycle path adjacent to the south side of Diablo Road from Fairway Drive east to the new Class I path to be constructed as part of the Magee Preserve development. A total of $5.7 million has been appropriated for this project. • C-578 & C-600 – San Ramon Valley Boulevard Improvements: Currently in the design stage, these projects consist of slurry seal and restriping the segment of San Ramon Valley Boulevard from Sycamore Valley Boulevard south to Jewel Terrace and resurfacing the segment from San Ramon Valley Boulevard north to Hartz Avenue. Project construction will be completed prior to winter 2022. • C-599 – La Gonda Way Bridge Improvements: Currently in the environmental and design stage. Total project cost is estimated at $6.03 million, with 88% of the cost eligible for federal funding through the Caltrans Highway Bridge Program. • C-601 – Camino Ramon Improvements: Currently in the design stage, this project consists of resurfacing Camino Ramon from Kelley Lane south to Fostoria Way. Project construction will be completed prior to winter 2022. Ongoing Capital Maintenance Capital maintenance describes ongoing replacement or renovation of existing capital assets such as park features, buildings, storm drains, and roads. Although much of the CIP review is focused on new projects, a significant portion of annual capital expenditures are allocated for capital maintenance. Anticipated capital maintenance obligations and costs for the next five years are estimated to total $20.09 million, an average of $4.0 million+ annually. This includes funding to continue the ongoing Pavement Management Program. Unfunded and Underfunded Projects The CIP includes several projects that are currently unfunded. Estimated cost of unfunded projects totals approximately $10 million. 6 American Rescue Plan Act of 2021 On March 11, 2021, the President signed the American Rescue Plan Act of 2021 (ARPA). The ARPA provides relief funding intended to speed up the United States' recovery from the economic and health effects of the Coronavirus pandemic. As part of the $360 billion in relief provided for state and local governments under the ARPA, Danville has been awarded $10,647,738. ARPA funds will be received in the form of two equal tranches. The first tranche totaling $5,323,869 was received in July 2021. These funds were appropriated and/or reserved through Resolution No. 64-2021. The second tranche of $5,323,869 will be received in July 2022. These funds will be appropriated as part of the 2022/23 CIP process. All ARPA funds must be committed by no later than December 31, 2024 and expended by no later than December 31, 2026. Table 1 illustrates Town staff’s recommendation for how ARPA funds can be combined with additional funds that were transferred into the CIP through Resolution No. 75- 2021 which approved the Annual Comprehensive Financial Report for the 2020/21 fiscal year, to fund nine currently unfunded or underfunded high priority projects. These funds were not available when the 2021/22 CIP was adopted. The “Approved ARPA Tranche 1” funds were previously appropriated through Resolution No. 64-2021. The funding shown in the next two columns has yet to be appropriated by the Town Council. Table 1 Potential Use of ARPA and 2020/21 Year-end funds This table assumes that all Tranche 2 ARPA funds are allocated for capital projects. Should the Town Council allocate some of these funds for other qualifying purposes, the total amount available for capital projects would be reduced. Approved Recommended Reso 75-2021 ARPA ARPA 2020/21 Total Project Project Name Tranche 1 Tranche 2 Year-End Funding A-330 Townwide Storm Drain Management $ 500,000 $ 500,000 $ 1,000,000 A-492 Central Irrigation Capital Maintenance (UGMO) $ 350,000 $ 350,000 A-362 Downtown Improvement Project (Master Plan) $ 1,500,000 $ 1,000,000 $ 2,500,000 A-620 Fiberoptic Cable Interconnect $ 500,000 $ 500,000 $ 1,000,000 B-616 Multi-Sport Skate Park $ 1,000,000 $ 1,500,000 $ 2,500,000 B-626 Town Office Relocation $ 1,474,726 $ 500,000 $ 1,974,726 B-628 Town Green and Arts District $ 1,059,143 $ 973,869 $ 2,000,000 $ 4,033,012 B-629 282 Front St. - Arts District Maker Space $ 600,000 $ 600,000 C-609 Town-wide Bicycle Master Plan $ - $ 1,000,000 $ - $ 1,000,000 $ 3,533,869 $ 5,323,869 $ 6,100,000 $ 14,957,738 7 SUMMARY The Town’s overall financial condition remains excellent with overall revenues exceeding the budget forecast and expenditures tracking closely with the approved 2021/22 Operating Budget. A positive fund balance from the 2020/21 fiscal year combined with the receipt of federal ARPA funds have considerably improved the Town’s CIP outlook, positioning the Town to fund and complete a number of high-priority projects within the next four years. The Town will continue to assess ongoing capital demands and needs, and balance these with available capital funding. Capital reserves are sufficient to fund projects included in the current five-year CIP. However, ongoing capital maintenance costs will eventually limit the Town’s ability to take on new capital projects. 2021 HIGHLIGHTS & OUTCOMES The Annual Planning and Goal Setting Workshop provides an opportunity for the Town Council to reflect on prior-year highlights and outcomes that support the Town’s mission to deliver superior municipal services that make people’s lives better. OVERVIEW The 2021 Annual Planning and Goal Setting Workshop was held on February 5. Being eleven months into the pandemic at that point, the Council spent a good portion of the day focused on the impacts of the pandemic on both the operations of the Town and on the local economy. Little did we know at the time that those issues would still be the focus of much of the Town’s efforts as the second anniversary of pandemic approaches. The State of California, Contra Costa County and the Town are all still operating under states of emergency originally declared in February and March of 2020. Town operations continued under an ever-changing set of public health mandates and guidance. As the virus itself has evolved over the past two years into different variants, public health officials have adopted, revised, rescinded, and readopted requirements for social distancing, masking, and proof of vaccination. The Town has incorporated these rules into our own operations (impacting how we conduct public meetings, facility rentals and special events) and has worked with our local business community to assist them in understanding and complying with these health measures. Town operations continued to evolve during the year as we learned from changes made during the first year of the pandemic and refined or improved on means of delivering service to our residents. The Building Division offered even more permits online and the Recreation, Arts and Community Services staff worked on mixing virtual and in person classes and programs for residents. While public meetings continued to occur virtually via Zoom, the Town Council was able to return to a live evening of Community Service Awards in December. The Council, working with the Museum of the San Ramon Valley, also entered into a Friendship City arrangement with the city of Danville, Kentucky. Finally, while the cherished 4th of July parade could not be staged in July, the Kiwanis Club adapted the event to Labor Day weekend and staged a parade on September 4. For 2022, all stakeholders look forward to the parade being back on July 4th. The Town continued to take actions to assist and support local businesses. The Town Council took action twice to allow for the continued use of expanded outdoor seating and parklets by restaurants while those restaurants contend with ongoing, limited demand for indoor seating by customers. Town staff completed the Forward Focus grant program ATTACHMENT B 2 working with local businesses to allocate the $525,000 in grant funds authorized by the Town Council and continued to work with the Danville Area Chamber of Commerce to reach out and support the local business community in a number of different ways. The Town’s fiscal condition began to recover from the initial pandemic-induced economic impacts. After taking steps to reduce operating expenditures and transfers by $7.5 million spread over fiscal years 2019/20 and 2020/21, revenues rebounded sufficiently to allow the Town Council to restore 2021/22 operating expenditures to 2019/20 levels. The fiscal outlook was further aided by the receipt of federal funding from the American Rescue Plan Act of 2021. (ARPA). Under the ARPA, the town was awarded $10.6 million to be received in two equal installments of $5.3 million in July 2021 and July 2022. With funds from the first installment, the Town was able to provide $950,000 to a total of nine non-profits servicing Danville; reserve $850,000 to fund senior services, mental health and homeless service providers; and appropriated $3.7 million for six different capital improvement projects. The Town closed the books on the 2020/21 fiscal year with a positive General Fund balance, allowing funds to be transferred into the Capital Improvement Program and to increasing the Operating Reserve. The Police Department continued their efforts to combat Part I crimes and reduce traffic accidents, efforts which once again lead Safewise to name Danville the “Safest City in California.” They did this while addressing the fallout from a fatal officer involved shooting that occurred on March 11. That incident and the subsequent criminal trial and conviction of the officer involved on charges stemming from an earlier shooting, sparked concern among some Town residents about the Department, against a backdrop of concerns played out across the country in the last several years. The Chief of Police and all members of the Department focused on continuing to do their jobs in a professional manner and to interact with those community members expressing concerns. The Development Services Department worked on a number of important initiatives, many of them in response to ongoing state intrusion into local planning. The year started with adoption of an ordinance regulating Accessory Dwelling Units (ADUs) and ended with adoption of a set of standards for new projects that will be authorized by SB 9, the legislation which effectively ends single family zoning. In between, the Town appealed (unsuccessfully) the Regional Housing Needs Allocation (RHNA) allocated to the Town by ABAG and ramped up work on the next Housing Element, which must be adopted by the end of 2022. In addition to these housing related efforts, the Town was able to address forward planning efforts aimed at enhancing the quality of life for our residents. After a long public input process, the Town Council approved the Town-wide Bicycle Master Plan which will provide a guide to improvements that will improve bicycle access and safety throughout the community. At the end of 2021, the Town kicked off the update to the Downtown Master Plan which will look at options to enhance the Downtown, helping both businesses and those visiting to shop, dine and recreate. 3 The upcoming Housing Element featured prominently in the Town’s public outreach efforts for the year. Town staff held a number of public workshops, posted extensive materials on the Town’s website, and retained consultants to assist with community surveys and public participation efforts for the coming year. 2021 also saw the launch of the monthly Town Talks video sessions with the Mayor, hosting a discussion of topics of interest to residents. The Town’s Public Information Officer continued to use social media to communicate with our residents. Legislatively, the Town Council continued with advocacy efforts aimed at the regional, state, and federal levels, in the face of government efforts to require cities to plan for and produce additional housing, especially for very low- and low-income households. Work continued on the plans to relocate the Town offices to 500 La Gonda Way. By the end of the year, substantial progress had been made on the Police Department facility, furniture had been ordered and contracts were being finalized for the work on the Town office part of the project as well as the new driveway and parking lot work. It is still anticipated that all Town personnel will be moved into the new facility by summer of 2022. In other capital improvement work, contracts have been awarded for pavement management work, environmental work is being done for the multi-use path along Diablo Road, new ballfield lights are being installed at Diablo Vista Park (work being paid for by the Sports Alliance) and various park projects, including the Town Green and the skatepark at Diablo Vista Park, will soon be in design. HIGHLIGHTS FROM 2021 Legislative •The Town continued to operate under a local state of emergency in response to the COVID-19 pandemic; and, adhered to various COVID-19 related Health Orders issued by the Contra Costa County Health Services Department and the State of California. •Continued to ensure the ongoing fiscal health of the Town by adopting a balanced 2021/22 operating budget, restoring some expenditures and staffing following on the $7.5 million in reductions enacted over the prior two fiscal years. Maintained strong reserves and sustainable ten-year forecasts. •Continued to conduct all public meetings via remote (ZOOM) format while adhering to the revised Brown Act requirements. •Town Council held separate joint meetings with each appointed Town commission and board. •Continued to adjust and extend temporary outdoor restaurant seating within public rights to mitigate economic impacts of the pandemic. 4 •Worked with Tri-Valley Cities Coalition and state legislators to advocate for changes to the Senate Pro-Tem “Building Opportunities For All” housing package including SB 9 and SB 10, to lessen their impacts to Danville. •Presented monthly legislative reports during Town Council meetings. •Hosted Tri-Valley Cities Council Meeting featuring an Outreach Presentation by the Citizen’s Redistricting Commission. •Adopted a resolution approving a Friendship City partnership with Danville, Kentucky. •Adopted recommendations for use of American Rescue Plan Act (ARPA) Funding to offset revenue loss, support program funding and administration, non-profit partnership funding and project funding. •Updated the Tri-Valley Cities 2021 Legislative Framework •The Town was officially designated as a Purple Heart Community. •Concluded the year with the 40th Annual Mayoral Installation and Community Service Awards. •Successfully recruited for, interviewed, and filled several Commission, Board, and position vacancies. Administration & Finance •Administered ARPA funding awarded to the Town, providing $950,000 to nine non-profit organizations, reserving $850,000 to fund senior services, mental health, and homeless services; and appropriating $3.5 million to help fund several capital improvement projects. •Continued to operate with reduced staffing levels in several departments pending more complete economic recovery. •Continued to interpret and apply COVID-19 requirements set forth by Contra Costa Health Services, the California Department of Public Health and the CDC, and adapt Town operations services to all protocols and guidelines. •Completed the 2020/21 Annual Comprehensive Financial Report (ACFR), realizing a positive $8.1 million General Fund balance. •Received Government Finance Officers Association recognition for excellence in financial reporting for a nineteenth consecutive year. •Maintained numerous highly successful interagency partnerships to better serve and support the community. Economic Development •Selected consultant SWA Group to update the Downtown Master Plan and launched the process in September 2021. •Administered Phases 1 and 2 of the $525,000 Forward Focus Grant Program to support local businesses through the pandemic. Closed the grant program on December 31, 2021, after awarding 137 grants totaling $489,814. 5 •Provided Business Assistance Programs to support the first and second phases of Cares Act funding and other federally sponsored pandemic relief programs for businesses. •Continued with management of temporary outdoor restaurant seating/ extensions within public rights of way for the duration of the pandemic. •Implemented the Holiday Marketing Campaign “Keep Danville Merry and Bright”, which included comprehensive outreach efforts through multiple modes of media and the development of a 28-page print/digital “Danville Picks” holiday gift guide. The guide provided discounted ad rates where 67 businesses participated to promote their local gifts ideas and encourage the community to support local businesses. •Continued growth and promotion of local businesses through the online Danville Business Directory, powered by Bludot Technologies. •Increased engagement and followers on the Live Locally Danville Instagram Account (almost 4K followers). Police and Emergency Services •Closed 2021 with a near record low in Part 1 reported crimes. Reported crime for 2021 rose by 7% from 2020. This stands as the second lowest year for Part 1 reported crime, 26% lower than the 10-year average. •Received the distinction of “Safest City in California” with a population of 50,000 or less in 2021 for the fifth year in a row by Safewise, an independent review website. •Closed 2021 with a 14% increase in total reported collisions, the second lowest reported collision total ever logged, 21% below the 10-year average for reported traffic collisions. There were no fatal collisions in 2021. •Continued the 10-8 program, a weekly livestreamed event that allows for engagement and interaction with residents via Facebook and YouTube to replace in person engagement due to the COVID-19 pandemic. •Monitored Contra Costa Health Department Health Orders to assist with community education and undertake enforcement activities when warranted. •Continued the Disaster Preparedness Program to increase readiness efforts aimed at preparing for and responding to any natural or man-made disasters or emergencies that could befall the Town. Community Outreach •Launched www.danvilletowntalks.org as a convenient and easy way for the community to stay informed and participate in the issues that matter to them. The new platform provides several outreach tools and enables educational elements for current projects, including the Housing Element Update and the Downtown Master Plan Update. •Continuously updated and refreshed the Town website to provide information and services to residents, including COVID-19, health orders issued by County 6 Health Services, the status of Town services and facilities, information and resources for businesses, and other community updates. •Continued social media efforts to highlight Town programs and essential local information. The Town continues to see a steady increase in followers on its Nextdoor, Twitter, Instagram, and Facebook accounts. •Launched the “Town Talks with the Mayor” program to provide a safe way for residents to connect with their community leaders and get up to the minute information on the issues and topics important to Danville. •Continued to utilize the Live Locally Quarterly Newsletter to promote Town projects, Town events, and public safety. The newsletter is delivered to approximately 20,000 Danville households. Sustainability •Adopted SB 1383 Compliant Procurement Policy and State of California’s Model Water Efficiency Landscape Ordinance (MWELO). •Continued membership with MCE Clean Energy, a Community Choice Energy program, providing ratepayers with greater choices for renewable energy options. •Continued a reduction in electricity usage through operation of photovoltaic arrays at four separate Town facilities. Capital Improvement Program •Started construction on the new Police Services Building at 500 La Gonda Way. •Completed construction of the $900,000 San Ramon Creek pedestrian bridge connecting Diablo Road and the Riverwalk development to the Town Green. •Continued the design and secured a FEMA grant for the Loch Lomond, Starview, and Westridge Trash Rack projects. •Continued the design for the San Ramon Valley Boulevard Improvements project. •Completed the design work and awarded a contract for construction of the 2021/22 Rubberized Cape Seal project. •Completed Phase I of the Traffic Signal Controller Upgrade Project. •Successfully procured $2,035,000 in Engineering and Transportation grants. •Began design of Diablo Road Trail Improvements •Began design of Iron Horse Trail and MVHS/Stone Valley Road Crossing Improvements (RRFBs). •Replaced/upgraded lighted crosswalk systems at two locations (La Gonda Way and Blemer Rd). •Replaced Battery Back-up System Components at 15 intersections. •Continued the inventory and condition assessment of the Town’s storm drainage system for the Town-wide Storm Drain Master Plan. Development Services •Completed a new Town-wide Bicycle Master Plan 7 •Adapted service delivery to provide increased ability for customers to apply for and receive various permits and entitlements online and remotely. •Completed Liverpool Neighborhood NTMP •Continued work on the Townwide Fiber Optic Master Plan, A-620 •Completed Biennial Traffic Monitoring Program •Initiated work on Caltrans’ funded Local Roadway Safety Improvement Plan •Initiated work on Tri-Valley Transportation Plan/Action Plan for Routes of Regional Significance update (TVTC & SWAT) •Completed Tri-Valley Transportation Development Fee Nexus Study, continued work on TVTDF Strategic Expenditure Plan •Re-initiated TRAFFIX student transportation services to 11 schools/1,200 students and launched RFID card/FirstView Parent Application •Continued participation/contributions to CCTA Innovate680 TAC/PAC, Growth Management Program Task Force (included adoption of Measure J Growth Management Program Update), Bi-County Traffic Modeling Group •Deployed and monitored approximately 22 Downtown Parklets with over 200 barricades/traffic control devices procured and deployed with a materials cost of $115,000. Maintenance Services •Completed annual renovation of the turf in the large dog park at Hap Magee Ranch Park (rated the best dog park in the area by Diablo Magazine). •Completed the annual creek cleaning project prior to October 15 and the winter rains. •Responded to historic storms in October and protected life and property with minimal damage to Town facilities. •Continued managing the automated underground irrigation system (UgMO), refining it to maximize water efficiency and prepare for potential future expansion to other sites. •Awarded new landscape maintenance contracts for Parks - Lighting and Landscape Assessment District Zone D. •Continued to manage all buildings for enhanced safety during the pandemic, including replacing the higher efficacy HVAC filters quarterly. •Rebuilt the gazebo and demolished the dilapidated barn at Hap Magee Ranch Park. •Repainted the Town Service Center exterior and replaced the building signage. •Repainted all red curbs throughout Town (approximately 75,000 linear feet). Recreation, Arts, and Community Services •Began the Age-Friendly Road Map development process with the Senior Advisory Commission. 8 •Continued to adapt recreation and enrichment programming and activities to both in person and virtual formats •Continued to work with the Arts Advisory Board and Parks, Recreation and Arts Commission to prioritize and continue implementation of recommendations in the Parks, Recreation and Arts Strategic Plan. •Successfully reopened the Community Center, Senior Center, Village Theatre & Art Gallery to the public with procedures in place to safely resume indoor, in- person programming for all ages. •Introduced the community to everyone’s favorite Acorn – Auggie! •Resumed adult sports leagues for the fall 2021 season. Bocce and Adult softball were played at Sycamore Valley Park •Began taking indoor rentals again following all state and county guidelines •Added 2 new pickleball courts out at Osage Station Park •Re-opened the Teen center sites at all three Danville middle schools. •Collaborated with other departments and the DACC to help promote Economic Development to include local businesses in events like: May the 4th Be With You, 2nd annual Scarecrow Stroll and the Amazing Race. •Added new outdoor summer camps at Sycamore Park, Osage Park, and Diablo Vista Park. •Continued to feature and promote public art, highlighted by the Shrumen Lumen sculpture summer exhibit at the Danville Library the Village Theatre & Art Gallery. •Moved Preschool Performance Series and Comedy with Liz Grant & Friends outside to the Town Green to allow for increased attendance. •Offered a virtual Shakespeare Playshop for kids in partnership with Cal Shakes. •Offered two Art After Dark events with live music and some sweet treats. •Hosted 5 community events including: a scaled-back version of the annual Kiwanis-Danville parade on Labor Day weekend, Danville Fallfest (1-day due to weather-related cancellation of Day 2), and a well-attended Lighting of the Old Oak Tree. •Incorporated additional guidelines and support for event organizers to comply with health protocols established by Contra Costa Health Services. Attachment – Notes from 2021 Planning and Goal Setting Workshop 2022 ANNUAL TOWN COUNCIL PLANNING & GOAL SETTING WORKSHOP MEETING NOTES AND OUTCOMES Friday, February 11, 2022, 8:30 a.m. Danville Community Center Vice Mayor Robert Storer conveyed that Mayor Newell Arnerich could not attend the workshop due to a personal matter. 2021 Highlights and Challenges The Town Manager provided an overview of the past 12 months. Key points: •The Town has worked through the adversity created by the pandemic. The Town Council/staff working relationship continues to be very positive, facilitating effectiveness. This is deeply appreciated and valued by staff. •While the first year of the pandemic focused on reacting and responding, in year two the pandemic was no longer the daily driver, and focus is shifted to recovering and retooling. •The pandemic has been a catalyst, helping to create a renaissance for local government. •The Town continues to employ an outstanding staff. Succession planning is a strong consideration. Adapting to changes has resulted in some outstanding work. There’s more focus on roles, less on specific job duties. •The Town is effectively using social media to drive certain messaging and seeing success rather than just reacting. Community members are responding positively, driving engagement levels to a new level. •Successes will become permanent changes - 10-8 and Town Talks with the Mayor have provided new ways to reach out to the community. The Town Council provided feedback on perceived highlights and challenges from the past year, including: •The Town dealt with economic impacts straight, took the financial hit up front, and made sacrifices. As a result, the Town is now in a good position. •The Police Department dealt with a difficult time, but the successful 10-8 Livestream showed integrity on behalf of the Police Chief and the Police Department. •The Town Council pushed back at local, regional, and national levels legislatively. Local control is important, especially in Danville. •Recreation continued to be creative. It kept kids engaged, introduced Auggie the Acorn, created more happiness and more excitement in the community, and didn’t slow down. •People have loved the Public Art Projects. ATTACHMENT C 2 • The Town partnered will other agencies to keep residents informed – e.g., where to get vaccinated etc.; also found different ways to communicate and respond. • The Council established a Friendship City with Danville, Kentucky. • Credit for Mayor Morgan’s strong leadership in 2021, another tough year as Mayor. Also appreciative of the challenges faced by Mayor Stepper in 2020. • New Senior Advisory Commission and HRC - plaques continue to mark the historic character of the Town and strengthen our history. • The new pedestrian bridge at the Town Green adds to the character of Danville. • The new Clocktower project looks great. • The Town Council is proud of what was accomplished and thanked staff for all the work that was done over the past year. Challenges: • State control, RHNA allocation – we need to continue to put information out ahead rather than be reactive. • ARPA funding allocations • Expanded outreach efforts - residents continue to look for new ways to engage, and we need to expand outreach efforts to increase choices. • Housing Element Update – Town Council is depending on staff will identify solutions that will keep the character of Danville. Mid-Year 2020/2021 Operating Budget Update The Town Council accepted the update and discussed the following: • The Town continues to be in a strong financial position. • Revenues have out-performed the forecast – the Town is in a positive place looking forward. • The Town is back on a fiscal trajectory of where it would have been pre-pandemic. • Factors contributing to the economic recovery – increased property values driving property tax, sales tax, development activity. • Pandemic posed a lot of unknowns. The Town took steps to mitigate the economic impact based upon some educated guesses. Revenue impact was less than forecast, expenditure reductions, thanks to Additional federal help has been received by virtue of Cares Act and ARPA, and expenditure reductions exceeded targets. Decision to not draw down reserves turned out to be prescient since subsequent ARPA funding cannot be used to replenish reserves. • Recreation has been the most significantly impacted. Revenues are expected to hit the budget forecast, but ae still only 60% of the pre-pandemic revenues. Staff is preparing to resume a full schedule this spring and summer. Mid-year budget adjustments are needed to hire temporary employees and instructors for camps and classes. 3 • For street closures and community events there are increasing concerns about event security, and this will be a factor in future event planning. For 2022, the Town will utilize available resources, but added security measures (barricades and contractors) carry significant costs. The Town will need to take a more direct role in security planning. • Property values continue to increase significantly. Property tax budget estimates were conservative. Mid-year revenues are well ahead of the forecast and should comfortably exceed the budget at end of year. • Sales tax is expected to exceed the budget forecast by year-end. Comparison of 2021 Q3 over 2020 Q3 shows a 16.4% increase. • The food sector/restaurants are doing better than ever before and are a very strong segment of the local economy. • With significantly positive revenue variances, mid-year revenue adjustments will not be recommended and can be deferred to year-end. • Mid-year expenditure adjustments totaling $465,000 will be recommended Development Services, Police, Maintenance Services and Recreation. • The formal mid-year budget report will be presented to the Town Council at the March 1, 2022, Council meeting. • A sizeable budget increase will be forthcoming in 2022/2023. Increases in operating costs, contract costs, and staffing costs resulting from re-filling vacant positions will all impact budgets. Increased revenues will offset expenditure increases. Mid-Year 2021/22 Capital Improvement Program Update The Town Council accepted the update and discussed the following: • Since the start of the fiscal year and influx of new revenue has changed the CIP funding landscape • Staff is shifting focus to see what needs to be done to get projects completed within deadlines. • Some projects are not funded but might be once decisions are made on how to use ARPA funds. • Capital maintenance projects will continue to require approximately $4 million annually to fund absent any new projects. • ARPA and Year-End 2020/21 funds can be used to fully or partially fund nine different high priority projects. • The Multi-Sport Skate Park project is currently not funded. With the Diablo Vista Play Area scheduled for this year, it might be possible to combine the two projects into one large project. • Town office relocation funding appropriation was required to keep that project moving forward. • The Diablo Road Trail project is considered fully funded. Measure J funds can be transferred from other projects setting aside a total of $ 5.7 million for the project. 4 • Absent Council direction, adjustments to commit funding received through Tranche 2 ARPA ($5,323,869) and 2020/2021 year-end ($6,100,000) will be deferred to the 2022/23 CIP. • ARPA funded projects must be completed by the end of 2026. Project construction for the next 4 years must carefully match funding with available bandwidth needed to deliver the projects. • Absent ARPA funds, many projects would have taken longer to fund and complete. • Council reviewed the current budget status for Project B-626 – Town Office Relocation. Service Delivery post-COVID-19 • Town employees have returned to the workplace, and classes and programs have resumed. • Both Staff and the people we serve have benefited from the changes that were introduced during the past two years. • With Town staff is located in six locations, online meetings have saved time. More business is being conducted remotely, and more employees are working from home. There are more options for meetings. Some things can’t be done remotely: Public works, Maintenance, Safety, and Recreation, but other services have just accelerated the societal change that was already happening. • The Town continued to review the operational adjustments it made at the start of the pandemic. Covid-19 variants have caused a continuation of those changes. • The Town has not required employees to be fully vaccinated. Staff continue to use precautions and have safety measures in place to keep people safe. A large percentage of Staff that works indoors are vaccinated. The Town continues to urge employees to get vaccinated. • The Recreation Department is still the most impacted because recreation is about bringing people together, which relies on direct interaction. • The Town continues to look for value for our residents. Time is valuable, so the Town is embracing flexibility and multiple ways of doing things and delivering value by saving resident’s time. Residents appreciate access to Permits online and business licenses online. • Public meetings will continue in person and on Zoom. • The Town Council’s second meeting in March will move to a hybrid format. Community Outreach and Engagement • Residents expect to have easy access to the Town and Town Council by online means, not just email. They expect to actively engage and help make decisions. • The www.danvilletowntalks.org website has helped residents to engage. More community outreach, more accessible as residents expectation is to view the information by subject rather than by department. Housing Element and Downtown Master Plan projects are two projects on the outreach platform. • The Town Website saw a 76% increase in traffic during the pandemic. 5 • The agendas webpage saw a 16.5% increase which reflects a growing increase in community involvement in Town meetings. • Outreach webinars like Town talks with the Mayor see more views after the fact than during the meeting due to the convenience of easy access online. Reach is broad, and resources are available. • The Town is using social media more proactively. • We see direct results of outreach in online community conversations. Discussions on the Faz project on Nextdoor, 20% of comments reference State mandates and RHNA numbers. Links to Housing 101 workshops on YouTube. • The Town is investing in Community Outreach with the aim to get ahead of the story. Coordinating across departments and projects, so messages don’t overlap. Proactive and not reactive outreach results in more positive responses and saves staff and Council time correcting misinformation. • Building a strong online resource of factual information means that residents can refer people to that information. It is more powerful when residents promote our resources. • Press releases are useful for being searchable by residents and are used with social media to promote projects, updates, and information. • The Town Council recommended adding www.danvilletowntalks.org to Danville Connect. Legislative Update Townsend Public Affairs provided a recap of the 2021 Legislative Session. • February 18 - Senate and Assembly Last day for bills to be introduced. • Deadline of March 14 for the Assembly, March 17 for the Senate - amendments must be submitted. • Local Control/Land Use Ballot Measure in November 2022 - “California Cities for Local Control” o 997K signatures needed. o Local efforts, petition gathering signatures at Danville Farmers’ market. o The Secretary of State has requested that it be submitted by April 29. o Could give cover to create an ordinance to protect local land use control. o Municipalities could pass a resolution demonstrating support. Some are hesitant because it has not yet qualified for the ballot. • SB9 was discussed. State legislation doesn’t address the affordability element - just makes developers rich - the biggest part of the puzzle left out. Townsend said it has also heard that feedback. • There was a discussion about the Turner Center Report on SB9, which anticipates less impact because of the costs involved. Still cautious as we don’t know the impact in our area yet. • Townsend is pushing for another Advocacy Day in Sacramento. The last time an in-person Advocacy Day was 2019 - virtual meetings since. 6 • AB 1445 Levine - Factor climate change impacts when allocating RHNA numbers. It will be backed by climate supporters. It might be good for the Tri-Valley cities coalition to support. • SB 45 - Portantino. Require Cal recycle to provide assistance to local jurisdictions to help them comply with SB1383. More likely to end up as a budget bill. • SB 852 Senator Dodd - authorize a city, county, or special district to form a Climate Resilience District for protecting or mitigating climate impacts. Like a JPA raise money to build out climate resiliency projects. • SB 917 Senator Becker – Seamless Transit Transformation Act. Seamless Bay Area – Would require MTC development and adoption of streamlined transit fare rates, wayfinding, and regionalized mapping for all 9 Bay Area Counties. Deals with concerns from transit agencies that ridership is lower. • AB 1400 Assembly Members Kalra, Lee, and Santiago - Guaranteed Health Care for all Single-payer healthcare bill. There are concerns about fiscal impacts, costs to state and taxpayers are very high. This bill is not moving forward this year. • Steve Glazer may be running for Lieutenant Governor for California. • Council all appreciate working with Townsend.