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08-18-2020 Council Agenda Packet - Amended Tuesday, August 18, 2020 - Amended San Luis Obispo Page 1 Based on the threat of COVID-19 as reflected in the Proclamations of Emergency issued by both the Governor of the State of California, the San Luis Obispo County Emergency Services Director and the City Council of the City of San Luis Obispo as well as the Governor’s Executive Order N-29-20 issued on March 17, 2020, relating to the convening of public meetings in response to the COVID-19 pandemic, the City of San Luis Obispo will be holding all public meetings via teleconference. There will be no physical location for the Public to view the meeting. Below are instructions on how to view the meeting remotely and how to leave public comment. Additionally, members of the City Council are allowed to attend the meeting via teleconference and to participate in the meeting to the same extent as if they were present. Using the most rapid means of communication available at this time, members of the public are encouraged to participate in Council meetings in the following ways: 1. Remote Viewing - Members of the public who wish to watch the meeting can view: • View the Webinar (recommended for the best viewing quality): ➢ Registration URL: https://attendee.gotowebinar.com/register/7619356504621444112 ➢ Webinar ID: 508-462-931 ➢ Telephone Attendee: +1 (415) 930-5321, Audio Access Code: 782-759-800 • Televised live on Charter Cable Channel 20 • View a livestream of the meeting on the City’s YouTube channel: http://youtube.slo.city 2. Public Comment - The City Council will still be accepting public comment. Public comment can be submitted in the following ways: • Mail or Email Public Comment ➢ Received by 5:00 PM on the day of meeting - Can be submitted via email to emailcouncil@slocity.org or U.S. Mail to City Clerk at 990 Palm St. San Luis Obispo, CA 93401. All emails will be archived/distributed to councilmembers, however, submissions after 5:00 p.m. on the day of the meeting may not be archived/distributed until the following day. Emails will not be read aloud during the meeting. • Verbal Public Comment ➢ In Advance of the Meeting - Call (805) 781-7164; state and spell your name, the agenda item number you are calling about and leave your comment. The verbal comments must be limited to 3 minutes. All voicemails will be forwarded to the Council Members and saved as Agenda Correspondence. Voicemails will not be played during the meeting. ➢ During the meeting – Join the webinar (instructions above). Once the meeting has started, please put your name and the item # you would like to speak on in the questions box. During public comment for the item, your name will be called, and your mic will be unmuted. Contact the office of the City Clerk at cityclerk@slocity.org for more information. All comments submitted will be placed into the administrative record of the meeting. San Luis Obispo City Council Agenda August 18, 2020 Page 2 San Luis Obispo Page 2 6:00 PM REGULAR MEETING AMENDED TELECONFERENCE Broadcasted via Webinar *Agenda amended to add Item A as shown in italics below CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez and Mayor Heidi Harmon A.RECEIVE AN UPDATE FROM THE EMERGENCY SERVICE DIRECTOR AND PROVIDE COVID-19 RELATED DIRECTION BASED ON CURRENT STATUS (JOHNSON – 20 MINUTES) Recommendation: 1.Receive an update from the Emergency Services Director related to COVID-19; and 2.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, affirming actions of the Emergency Services Director.” APPOINTMENTS 1.ADVISORY BODY APPOINTMENTS FOR UNSCHEDULED VACANCIES (PURRINGTON – 5 MINUTES) Recommendation: Confirm appointments, as recommended by the Council Liaison Subcommittees, for the Tourism Business Improvement District Board (TBID), the Personnel Board (PB), and the Human Relations Commission (HRC). PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (Not to exceed 15 minutes total) The Council welcomes your input. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items. San Luis Obispo City Council Agenda August 18, 2020 Page 3 CONSENT AGENDA Matters appearing on the Consent Calendar are expected to be non-controversial and will be acted upon at one time. A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the Consent Agenda within the three-minute time limit. 2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation: Waive reading of all resolutions and ordinances as appropriate. 3. MINUTES REVIEW - JULY 21, 2020 CITY COUNCIL MINUTES (PURRINGTON) Recommendation: Approve the minutes of the City Council meeting held on July 21, 2020. 4. AMENDMENT TO THE CITY’S INVESTMENT POLICY AND MANAGEMENT PLAN (ELKE) Recommendation: 1. As recommended by the Investment Oversight Committee, adopt an amendment to the City’s Investment Policy & Management Plan to incorporate an ESG Investing approach; and 2. Direct staff to amend the current investment advisory agreement with PFM Asset Management LLC to include ESG Investing and authorize the City Manager to execute the amended agreement; and 3. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, updating Position, Payment Disbursement, and Receipt Authority.” 5. 2020 STANDARD SPECIFICATIONS AND ENGINEERING STANDARDS UPDATE; STREET CLOSURES FOR SPECIAL EVENTS (HORN / NELSON) Recommendation: 1. Adopt a Resolution entitled “A Resolution of the Council of the City of San Luis Obispo approving revised Standard Specifications and Engineering Standards for Construction;” and 2. Authorize the City Engineer to release projects currently in design or approved by Council under the 2018 City Standard Specifications on a case by case basis; and 3. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing the Public Works Director to Approve Temporary Closures of City Streets for Special Events, Construction Activities or Other Purposes.” San Luis Obispo City Council Agenda August 18, 2020 Page 4 6. APPROVE THE ACQUISITION OF PROPERTY ADJACENT TO LOS OSOS VALLEY ROAD FROM THE CALIFORNIA DEPARTMENT OF TRANSPORTATION TO THE CITY OF SAN LUIS OBISPO (HORN / KLOEPPER) Recommendation: As recommended by the Planning Commission, adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, to approve the acquisition of property adjacent to Los Osos Valley Road from the California Department of Transportation (Caltrans) to the City of San Luis Obispo (City) based on the determination of General Plan conformance with an exemption from environmental review, as represented in the staff report and attachments dated August 18, 2020 (GENP-0251-2020).” 7. 2019-20 PAYMENT REDUCTION AND APPROVAL OF A TRANSIT AGREEMENT EXTENSION BETWEEN THE CITY OF SAN LUIS OBISPO AND CAL POLY (HORN / ANGUIANO) Recommendation: 1. In response to changes in service usage under the terms of the 2019-20 Transit Agreement due to impacts of COVID-19 approve a reduction to Cal Poly’s payment for the 4th Quarter by $99,964; and 2. Approve a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the City Manager to execute an extension of the 2011- 2016 Transit Subsidy Agreement between the City of San Luis Obispo and Cal Poly.” 8. AUTHORIZATION TO PURCHASE MULTI-SPACE PAY STATIONS FOR ON- STREET PARKING MANAGEMENT (HORN / HUSSEY) Recommendation: 1. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the City Manager to execute a Sole Source Contract for purchase and installation of Multi-Space Pay Stations and a Sole Source Contract for operation and maintenance of Multi-Space Pay Stations with IPS Group, Incorporated” in an amount not to exceed the available project budget; and 2. Authorize the City Manager to execute a separate sole source contract with IPS Group for the operation and maintenance of the Multi-Space Pay Stations. 9. AUTHORIZATION TO NEGOTIATE, EXECUTE, AND MODIFY AGREEMENTS FOR PARKING FUND LEASE SPACES (HORN / HUSSEY) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the City Manager to negotiate, execute, and m odify Commercial Lease Agreements for Parking Fund Lease Spaces” with tenants of property located at 860 Pacific Street Suites 101 through 105. San Luis Obispo City Council Agenda August 18, 2020 Page 5 10. AUTHORIZATION TO APPLY FOR FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) ASSISTANCE TO FIREFIGHTERS GRANT (AF G) AND THE CALIFORNIA FIRE FOUNDATION WILDFIRE SAFETY & PREPAREDNESS GRANT (AGGSON / BLATTLER) Recommendation: 1. Authorize the Fire Department to apply for a grant to the Federal Assistance to Firefighters Grant (AFG) Program for the amount of $137,510 to send two EMT firefighters through Certified Paramedic Training; and 2. Authorize the Fire Department to apply for a grant to the California Fire Foundation Wildfire Safety & Preparedness Grant Program for the amount of $14,953.52 to purchase Personal Protective Equipment coats for wildland firefighting; and 3. Authorize the City Manager, or their designee, to execute the grant documents and approve the budget changes necessary to appropriate the grant amount upon notification that the grant has been awarded. 11. UPDATED MITIGATION MEASURES FOR THE SAN LUIS RANCH SPECIFIC PLAN (STANWYCK / CODRON / RICKENBACH) Recommendation: 1. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, modifying Mitigation Measures and Mitigation Monitoring and Reporting Plan and approving an addendum to the Final Supplemental EIR for the San Luis Ranch Project for property located at 1035 Madonna Road ("San Luis Ranch");” and 2. Approve an Addendum to the certified Final Supplemental Environmental Impact Report (FSEIR) to satisfy CEQA compliance for this action. 12. SELECTION OF VOTING DELEGATE AND ALTERNATES – LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE (PURRINGTON) Recommendation: Appoint Council Member Erica A. Stewart as the Voting Delegate and Council Member Andy Pease and Council Member Carlyn Christianson as Alternate Voting Delegates to vote on the City’s behalf at the Annual Business Meeting of the League of California Cities on Friday, October 9, 2020. San Luis Obispo City Council Agenda August 18, 2020 Page 6 13. AUTHORIZATION TO UPDATE THE CITY’S MASTER FEE SCHEDULE TO ADD A CHILDCARE FEE ASSOCIATED WITH PROVIDING CHILDCARE DURING SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT’S (SLCUSD) PERIOD OF DISTANCE LEARNING (AVAKIAN / BURGER) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting new fees and amending the 2020-21 Master Fee Schedule.” 14. AUTHORIZATION TO AMEND THE CURRENT CONTRACT FOR CHANGE MANAGEMENT AND ECONOMIC RECOVERY TO INCLUDE PROJECT MANAGEMENT AND EXPERTISE RELATED TO DIVERSITY, EQUITY, AND INCLUSION (JOHNSON / TONIKIAN) Recommendation: Authorize the City Manager to execute a contract amendment in the amount of $76,025 with Catalyst Consulting to support facilitation and support services as it is related to the Diversity, Equity, and Inclusion Task Force (DEI -TF). PUBLIC HEARING AND BUSINESS ITEMS 15. ADOPTION OF THE 2020 CLIMATE ACTION PLAN FOR COMMUNITY RECOVERY (CODRON / READ – 60 MINUTES) Recommendation: As recommended by the Planning Commission and Active Transportation Committee, adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Climate Action Plan for Community Recovery and associated California Environmental Quality Act Greenhouse Gas Emission Thresholds and guidance including a Negative Declaration of Environmental Review (EID-0275-2020).” San Luis Obispo City Council Agenda August 18, 2020 Page 7 16. INTRODUCE AN ORDINANCE REZONING SUBJECT PROPERTIES FROM C-D- H AND C-D TO C-D-H-PD AND C-D-PD TO PROVIDE A PLANNED DEVELOPMENT OVERLAY, AND DEVELOPMENT REVIEW OF A SIX-STORY MIXED-USE BUILDING CONSISTING OF APPROXIMATELY 30,000 SQUARE FEET OF COMMERCIAL/OFFICE SPACE AND 50 RESIDENTIAL DWELLING UNITS (1144 CHORRO) (CODRON / BELL – 90 MINUTES) Recommendation: 1. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of S an Luis Obispo, California, approving a Planned Development Overlay for seven properties within the Downtown Commercial Zone and amending the Zoning Regulations Map to change the zoning designation of the associated properties from C-D-H to C-D-H-PD and C-D to C-D-PD, respectfully, including a Mitigated Negative Declaration of Environmental Review, as represented in the staff report and attachments dated August 18, 2020 (1144 Chorro, 868 and 870 Monterey, 876 and 890 Marsh, 895, 898, 973 Higuera Streets: PDEV-0509-2019, & EID-0475-2019);” and 2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving development of a six-story mixed-use building consisting of approximately 30,000 square feet of Commercial/Office Space and 50 Residential Dwelling Units, within the Downtown Historic District. The Project includes a rezone to provide a Planned Development Overlay, permanent preservation of an off -site building located at 868 and 870 Monterey Street, a new driveway along Marsh Street, and a request to allow a maximum building height of 75 feet, where 50 feet is the standard in the Downtown Commercial Zone. The Project includes a Mitigated Negative Declaration of Environmental Impact as represented in the staff report and attachments dated July 8, 2020 (1144 Chorro, 868 and 870 Monterey, 876 and 890 Marsh, 895, 898, 973 Higuera Streets ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019);” and 3. Adopt an Initial Study/Mitigated Negative Declaration for the project. 17. AMENDMENT TO GENERAL PLAN, LAND USE ELEMENT, AND WATER AND WASTEWATER MANAGEMENT ELEMENT (FLOYD / METZ – 20 MINUTES) Recommendation: As recommended by the Planning Commission, adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting amendments to the Land Use Element and Water and Wastewater Management Element of the General Plan (GENP-0188-2020) and accepting an addendum to the Land Use and Circulation Element (LUCE) Update EIR and Water and Wastewater Management Element Negative Declaration (Citywide, GENP-0188-2020).” San Luis Obispo City Council Agenda August 18, 2020 Page 8 LIAISON REPORTS AND COMMUNICATIONS (Not to exceed 15 minutes) Council Members report on conferences or other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURNMENT The next Regular City Council Meeting is scheduled for Tuesday, September 1, 2020 at 5:00 p.m. and 6:00 p.m., respectively, via teleconference. LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410. City Council regular meetings are televised live on Charter Channel 20. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website www.slocity.org. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7100. Department Name: Administration Cost Center: 1001 For Agenda of: August 18, 2020 Placement: Business Estimated Time: 20 Minutes FROM: Derek Johnson, City Manager / Emergency Services Director Prepared By: Victoria Tonikian, Interim Executive Assistant to the City Manager/Fiscal Officer SUBJECT: RECEIVE AN UPDATE FROM THE EMERGENCY SERVICES DIRECTOR AND PROVIDE COVID-19 RELATED DIRECTION BASED ON CURRENT STATUS RECOMMENDATION 1.Receive an update from the Emergency Services Director related to COVID-19; and 2.Adopt a Resolution (Attachment A) affirming the Emergency Services Director’s August 7, 2020 Proclamation No. 5, suspending the conditional use permits and other requirements for the establishment or expansion of safe parking programs within the City of San Lui s Obispo. DISCUSSION Background Section 2.24.060 of the Municipal Code empowers the Emergency Services Director, in the event of the proclamation of a "local emergency" to make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency. On August 7, 2020, City Manager acting as the Emergency Services Director, issued an emergency proclamation to take additional action to protect the community in response to the rapidly rising cases of COVID-19 in the city, county and surrounding counties by suspending conditional use permit and other requirements for the establishment or expansion of safe parking programs within the City of San Luis Obispo. Effective Friday, August 7, 2020 and upon affirmation of the Disaster Council, the Community Development Director is authorized to administratively allow for the temporary expansion or establishment and operation of Safe Parking locations throughout the City of San Luis Obispo at locations authorized by the Emergency Services Director. Requirements for both temporary emergency expansion of the 40 Prado Road Safe Parking Program and establishment of new Safe Parking Locations are located in Exhibit A of Attachment A. Policy Context Section 17.86.230 provides details of the requirements and process for expanding and permitting safe parking locations. Amendment Item A Environmental There are no projected environmental impacts associated with the temporary expansion of the safe parking program to existing lots and the permit process will analyze longer term impacts associated with any expansion. Financial The City Council allocated $30,000 in CARES Act funding to expand safe parking programs and the City is negotiating with CAPSLO to administer new sites. Amendment Item A R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AFFIRMING ACTIONS OF THE EMERGENCY SERVICES DIRECTOR WHEREAS, section 2.24.060 of the Municipal Code empowers the Emergency Services Director, in the event of the proclamation of a "local emergency" as provided in this subsection, the proclamation of a " state of emergency" by the Governor or the Director of the California Emergency Management Agency, a " federal declaration of emergency" or the existence of a "state of war emergency," to make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; provided, however, such rules and regulations must be confirmed at the earliest practicable time by the City Council; and WHEREAS, section 2.24.020 of the Municipal Code includes an epidemic as one of the proper grounds for proclaiming a local emergency; and WHEREAS, the President of the United States has declared a State of National Emergency; the Governor of the State of California has proclaimed a State of Emergency for the State of California and issued Executive Orders and direction regarding measures to mitigate the spread of cases of COVID-19 within the State of California; the San Luis Obispo County Emergency Services Director has proclaimed a local emergency; and the San Luis Obispo County Public Health Director has declared a public health emergency related the spread of cases of COVID-19 within the State of California and all recitals set forth therein, are included as though fully set forth herein; and WHEREAS, the pandemic COVID-19 continues to spread rapidly worldwide and in the U.S., continuing to present an immediate and significant risk to public health and safety, and resulting in serious illness or death to vulnerable populations, including the elderly and those with underlying health conditions; and WHEREAS, heightened levels of public health and safety planning and preparedness have been necessitated in preparation for and response to confirmed cases of COVID-19 in the County of San Luis Obispo, and rapid response not lending itself to otherwise applicable n otice and approval timelines has been and will be necessary to respond to the rapidly evolving pandemic and to mitigate against the spread of COVID- 19 and its resulting public health and safety impacts; and WHEREAS, in the absence of such actions, County wide health services may become overwhelmed and unable to keep up with medical demand for care and availability of hospital or care facility capacity. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: Amendment Item A Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 1. All recitals set forth above, and all recitals included in support of Federal, State and County actions referenced herein, are adopted as though fully set forth herein as findings in support of this Resolution. SECTION 2. A local emergency continues to exist throughout the City, and the City has been undertaking, and will continue through cessation of this emergency to undertake, necessary measures and incur necessary costs, which are directly related to the prevention of the spread of the COVID- 19 Virus and are taken in furtherance of: the Secretary of Health and Human Services Secretary’ s determination that a public health emergency has existed since January 27, 2020; City Council’ s Proclamation of Local Emergency on March 17, 2020; the Governor’ s Proclamati on of a State of Emergency on March 4, 2020; the President of the United States’ Declaration of a National Emergency on March 13, 2020; the County Emergency Services Director’ s Proclamation of Local Emergency and the County Public Health Director’s Declar ation of a Public Health Emergency on March 13, 2020, and related orders and directions. SECTION 3. During the existence of said local emergency, the powers, functions, and duties of the Emergency Services Director and the Emergency Organization of this City shall be those prescribed by state law, ordinances, and resolutions of this City and by the City of San Luis Obispo Emergency Operations Plan, notwithstanding otherwise applicable procedures, timelines or methods of action and the Emergency Services Director is expressly authorized to take any and all actions in furtherance of emergency powers to address the local emergency. SECTION 4. The City Council hereby affirms the City of San Luis Obispo Emergency Services Director’s Proclamation No. 5, issued August 7, 2020 (Attached hereto as Ex. A), related to the suspension of conditional use permits and other requirements for the establishment or expansion of safe parking programs within the City of San Luis Obispo. SECTION 5. The proclamation of local emergency shall be deemed to continue to exist until it is terminated by the City Council of the City of San Luis Obispo pursuant to a resolution adopted by the City Council of the City San Luis Obispo. Amendment Item A Resolution No. _____ (2020 Series) Page 3 R ______ SECTION 6. A copy of this Resolution shall be posted on all outside public access doors of City Hall of the City of San Luis Obispo and in one public place within any area of the City within which this Resolution applies and personnel of the City of San Luis Obispo shall endeavor to make copies of this order and regulation available to the news media. Upon motion of Council Member______________, seconded by Council Member _____________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ____________________________________ Teresa Purrington City Clerk Amendment Item A P 05 EMERGENCY SERVICES DIRECTOR PROCLAMATION NO. 5 (2020 SERIES) A PROCLAMATION OF THE EMERGENCY SERVICES DIRECTOR OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, SUSPENDING MUNICIPAL CODE AND CONDITIONAL USE PERMIT AND OTHER REQUIREMENTS FOR THE ESTABLISHMENT OR EXPANSION OF SAFE PARKING PROGRAMS WITHIN THE CITY OF SAN LUIS OBISPO RELATED TO THE PANDEMIC OF VIRUS KNOWN AS COVID-19 WHEREAS, section 2.24.060 of the San Luis Obispo Municipal Code empowers the Emergency Services Director, in the event of the proclamation of a “local emergency” as provided in this subsection, the proclamation of a “state of emergency” by the Governor or the Director of the California Emergency Management Agency, a “federal declaration of e mergency” or the existence of a “state of war emergency,” to make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; provided, however, such rules and regulations must be confirmed at the earliest practicable time by the City Council; and WHEREAS, section 2.24.020 of the Municipal Code includes an epidemic as one of the proper grounds for proclaiming a local emergency; and WHEREAS, the President of the United States has declared a State of National Emergency; the Governor of the State of California has proclaimed a State of Emergency for the State of California and issued Executive Orders directing measures to mitigate the spread of cases of COVID-19 within the State of California, including social distancing and mandatory use of face coverings in public places see https://www.cdph.ca.gov/Programs/CID/DCDC/CDPH%20Document%20Library/COVID - 19/Guidance-for-Face-Coverings_06-18-2020.pdf); the San Luis Obispo County Emergency Services Director has proclaimed a local emergency; and the San Luis Obispo County Public Health Director has declared a public health emergency related the spread of cases of COVID-19 within the State of California; the City Council declared a continuing local emergency; and WHEREAS, conditions of extreme peril to the safety of persons and property have arisen within the City, caused by recent increases in confirmed cases and the continuing risk of spread of the pandemic of the virus known as COVID-19 and the demands on public services to mitigate and respond to those risks, as described in the President’s Declaration of a National Emergency, the Governor’s Proclamation of a State of Emergency, the County Emergency Services Director’s Proclamation of Local Emergency and the County Public Health Director’s Declaration of a Public Health Emergency, and all recitals set forth therein, which are included as though fully set forth herein; and WHEREAS, maintenance of appropriate social distancing between non-household individuals and groups and wearing face masks or coverings in public settings and where distance between non-household members cannot be maintained has proven effective in mitigating the spread of COVID- 19; and WHEREAS, pursuant to the Order of the State Public Health Officer issued on May 7, 2020, the State Public Health Officer has progressively designated businesses that may reopen Amendment Item A ESD Proclamation No. 5 (2020 Series) Page 2 P 05 with certain modifications, based on public health and safety needs, at https://covid19.ca.gov/roadmap and these modifications include the requirements for statewide industry guidance for businesses from California’s Resilience Roadmap , including the fifth requirement of the statewide industry guidance for businesses, that all facilities must establish physical distancing guidelines before reopening; and WHEREAS, Governor Newsom and the State Public Health Officer have ordered and directed that all jurisdictions should limit group gatherings and that all persons must wear face masks or coverings in places open to the public and where at least six feet of space between non- household individuals and groups cannot be maintained; and the Order required all Californians to continue to obey the State public health directives made available at https://covid19.ca.gov/stay- home-except-for-essential-needs and elsewhere as the State Public Health Officer may provide. WHEREAS, the conditions of extreme peril concerning the spread of COVID-19 warrant and necessitate measures to ensure social distancing and deter large congregations of persons , and high-risk activities that increase the risk of community spread of the COVID-19 virus and the wearing of face coverings or masks consistent with State emergency and public health orders; and WHEREAS, the City’s Zoning Regulations (Chapter 17.86.230) says that Safe Parking provides homeless individuals and families with vehicles a safe place to temporarily park overnight to facilitate the transition to permanent housing, and as such the expansion of Safe Parking opportunities in the City is a strategy to expand opportunities for safe shelter to help mitigate the spread of COVID-19; and WHEREAS, the County of San Luis Obispo has permitted Safe Parking to occur at the Veteran’s Hall location within the City, 801 Grand Avenue, but has discontinued the service at that location; and WHEREAS, Community Action Partnership of San Luis Obispo County currently holds a Conditional Use Permit for the purpose of allowing seven (7) Safe Parking spaces at its facility on 40 Prado Road and can accommodate ten (10) additional Safe Parking spaces co-located with supportive services to support the homeless population during the pandemic emergency; and WHEREAS, the City is working to identify additional locations that may be suitable to establish additional Safe Parking locations; and WHEREAS, in the absence of such actions, the risk of rapid spread of COVID 19 among the homeless population is increased and county wide health services may become overwhelmed and unable to keep up with medical demand for care and availability of hospital or care facility capacity and the health and safety of persons within the City will be endangered ; and WHEREAS, the City of San Luis Obispo Emergency Services Director has considered the risks and deems that the expansion of Safe Parking opportunities in the City is necessary to prevent the spread of COVID-19. NOW, THEREFORE, BE IT PROCLAIMED by the Emergency Services Director of the City of San Luis Obispo, based on the findings set forth in the recitals above, that: Amendment Item A ESD Proclamation No. 5 (2020 Series) Page 3 P 05 SECTION 1. Pursuant to the City’s authority under California Constitution Article XI, Section 7 to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations necessary for the protection of the City ; the City of San Luis Obispo Charter; and Chapter 2.24 of the San Luis Obispo Municipal Code, emergency measures are necessary to support and facilitate the expansion of safe parking facilities for unhoused persons in order to minimize exposure to the elements that compromise health, to minimize risks of sustained close contact and congregation and transmission of COVID-19 and to advance social distancing and personal hygiene protocols necessary to prevent or minimize the spread of COVID-19 and protect the public health, safety, welfare and economic security of the citizens of San Luis Obispo. SECTION 2. Any and all provisions of the San Luis Obispo Municipal Code, Chapter 17.86, and any and all provisions of any other currently applicable code provision or use permit, entitlement or contract issued to any current homeless or supportive services provider p ermitted or contracted with the City of San Luis Obispo , are hereby suspended to the extent that such provisions would otherwise limit or prevent the expansion by such party of safe parking facilities within the City, until such time as the declared City, County and State emergency declarations are terminated or such other time as may be determined by order of the Emergency Services Director or City Council, subject to the requirements and restrictions set forth herein . SECTION 3. Requirements for the temporary emergency expansion of the 40 Prado Road Safe Parking Program (City Conditional Use Permit #USE-0413-2014). A. The Community Development Director is hereby authorized, upon written request, to administratively allow for the temporary expansion of the existing permitted operation for Safe Parking located at 40 Prado Road at that location or at any other location authorized by the Emergency Services Director within the City of San Luis Obispo if the Community Development Director determines that the expansion is consistent with the purpose and intent of San Luis Obispo Municipal Code Section 17.86.230. B. If the operators of Safe Parking at 40 Prado Road wish to maintain the establishment or expansion of a Safe Parking location allowed pursuant to this order after the termination of applicable emergency orders, any such operator shall submit the appropriate Planning Application to the Community Development Department for processing in accordance with otherwise applicable city regulations for issuance of a use permit or modification to an existing permit. Any limitations or new conditions of approval that result from the review process shall be implemented following approval of the permit modification. SECTION 4. Requirements for the establishment of new Safe Parking locations. A. The Community Development Director is hereby authorized to immediately allow for the establishment and operation of new Safe Parking locations by the City and/or third party non-profit partner, upon submittal of a complete Planning Application for a Conditional Use Permit demonstrating compliance with the performance standards required by SLOMC Section 17.86.230.E.I as may be required to normally establish Safe Parking at the proposed location. B. The Community Development Department will process the new application through the normal course of review for the permit application submitted. Upon approval of the Safe Parking permit, all conditions of approval shall be applied to the use. If a Amendment Item A ESD Proclamation No. 5 (2020 Series) Page 4 P 05 Conditional Use Permit is not approved within 120 days, then the Safe Parking use shall cease. SECTION 5. In the event that the Safe Parking site is operated in violation of any requirement established for the temporary operation and such violation is not remedied as directed by the City, the Community Development Director may notify the operator in writing that the temporary operation authorization is terminated; upon receipt of said notice , the operator shall terminate operations and return the site to its original condition within 10 days of receipt of said notice. SECTION 6. Incorporation by reference. This Order is issued in accordance with, and incorporates by reference, the March 4, 2020 Proclamation of a State of Emergency issued by Governor Gavin Newsom, the March 13, 2020 Proclamation by the Director of Emergency Services Declaring the Existence of a Local Emergency in the County, the March 13, 2020 Declaration of Local Health Emergency Regarding Novel Coronavirus 2019 (COVID -19) issued by the Health Dire ctor; and the City of San Luis Obispo’s March 17, 2020 Resolution Declaring a Local Emergency and all subsequent and continuing State, County and City orders whether or not specifically referenced herein. SECTION 7. City Council confirmation. This Proclamation shall be presented to the City Council of the City of San Luis Obispo for confirmation at or before its August 18, 2020 meeting, pursuant to San Luis Obispo Municipal Code Section 2.24.060. SECTION 8. Enforcement. This proclamation shall be enforceable, and violations shall be subject to penalties under Municipal Code Sections 2.24.100 and/or Administrative Enforcement under Chapter 1.24 and Resolution No. 11106 (2020 Series), and prior Emergency Resolutions of the City Council. SECTION 9. Posting. A copy of this order and regulation shall be broadly publicized and posted on all outside public access doors of City Hall of the City of San Luis Obispo and in one public place within any area of the City within which this order and regulation applies and personnel of the C ity of San Luis Obispo shall endeavor to make copies of this order and regulation available to the news media. Amendment Item A ESD Proclamation No. 5 (2020 Series) Page 5 P 05 SECTION 10. Warning prior to citation. No criminal citation for violation of this order shall be issued, unless at least one in-person warning or notification of this proclamation has been made at an affected business. The foregoing Proclamation was approved this 7th day of August 2020 at 2:00 PM. Derek Johnson, Emergency Services Director ATTEST: Teresa Purrington City Clerk APPROVED AS TO FORM: J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this 7th day of August 2020. Teresa Purrington City Clerk Amendment Item A Department Name: Administration Cost Center: 1021 For Agenda of: May 5, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Teresa Purrington, City Clerk Kevin Christian, Deputy City Clerk SUBJECT: ADVISORY BODY APPOINTMENTS FOR UNSCHEDULED VACANCIES RECOMMENDATION Confirm appointments, as recommended by the Council Liaison Subcommittees, for the Tourism Business Improvement District Board (TBID), the Personnel Board (PB), and the Human Relations Commission (HRC). DISCUSSION Annual appointments to the various City Advisory Body Committees were made at the March 17, 2020 City Council meeting. The process for those appointments included recruitment by the City Clerk’s office, interviews and recommendations by the various Council subcommittees, and final confirmation of recommendations by the full Council. Applications of candidates not selected for appointment are held for one year per the Advisory Body Handbook, for use in appointments for unscheduled vacancies. The vacancies that this action will fill were either ongoing or were due to recent resignation as detailed below: Tourism Business Improvement District Board: A seat on the Board remained unfilled following the annual appointment process, therefore recruitment for this position was held open. The Board membership was further reduced due to a resignation in March, leaving two seats open. The Council Liaison Subcommittee for the TBID held interviews on July 28, 2020, with current Chair John Conner attending. The Council Liaison Subcommittee recommends the immediate appointment of Natalie Ward, to the vacant 4-year term, expiring March 31, 2024, and the immediate appointment of John Byrns to the remainder of the vacant 4-year term, expiring March 31, 2023. Item 1 Packet Page 1 Personnel Board: Due to scheduling conflicts, applicants for the vacant PB seat were not able to be interviewed for possible appointment at the March 17, 2020 City Council meeting. The COVID-19 emergency further postponed the interview process and only one applicant remains. Based on review of her application and eight years of past service on the Promotional Coordinating Committee, the Council Liaison Subcommittee recommends the appointment of Jill LeMieux, to the remainder of the vacant 4-year term, expiring March 31, 2021. Human Relations Commission: A recent resignation created a vacancy on the HRC in mid-July. Based on application information and interview performance during the annual recruitment period, the Council Liaison Subcommittee recommends the appointment of Angela Kasprzak, effective immediately, to the remainder of the vacated 4-year term, expiring March 31, 2024. Policy Context The Advisory Body Handbook, last adopted by City Council in February 2018, outlines the recruitment procedures, membership requirements, and term limits for the City’s advisory bodies. The bylaws for all advisory bodies are also contained in the Advisory Body Handbook, some of which include additional membership requirements. Additionally, the City Council Policies and Procedures Manual, last adopted in August 2019, describes the “Appointment Procedure” and “Process” for Advisory Body appointments. Recruitment and appointment recommendations were performed in conformance with all recruitment procedures, processes, and bylaws found in these resources. Public Engagement Recruitment for the TBID Board has been open continuously since the annual recruitment cycle began in November 2019. Recruitment for the PB was open from June 2019 through January 2020. Recruitment for the HRC was open during the annual recruitment cycle, November 2019 through January 2020. Recruitment was advertised in print media, posted on the City website and social media, and has been listed and noticed as required by the “Maddy Act” (GC 54972, Local Appointments List). CONCURRENCE The Council Liaison Subcommittees concur with the recommendations. Item 1 Packet Page 2 ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: FY 2020-21 Funding Identified: N/A Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Total There is no fiscal impact for appointment of Advisory Body members. All cost related to the recruitment process are included in the City Clerk’s annual budget appropriation. ALTERNATIVES Council could recommend changes to the recommended appointments or direct staff to re-open recruitment for additional candidates. AVAILABLE FOR REVIEW All applications are available for public review, by request, in the Office of the City Clerk, which can be reached at (805) 781-7100 or cityclerk@slocity.org during normal business hours. Item 1 Packet Page 3 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 1 Packet Page 4 Tuesday, July 21, 2020 Special/Regular Meeting of the City Council CALL TO ORDER A Special/Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, July 21, 2020 at 6:02 PM via teleconference, by Mayor Harmon. ROLL CALL Council Members Present: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez, and Mayor Heidi Harmon. Absent: None City Staff Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. BUSINESS ITEM A. RECEIVE AN UPDATE FROM THE EMERGENCY SERVICES DIRECTOR AND AFFIRM, MODIFY OR REPEAL THE EMERGENCY SERVICES DIRECTOR PROCLAMATION DATED JULY 17, 2020 AUTHORIZING THE FUNDING OF CERTAIN PROJECTS AND THE PURCHASE OF CERTAIN EQUIPMENT, SUPPLIES AND SERVICES OUTSIDE OF REGULAR PURCHASING PROCEDURES Emergency Services Director Derek Johnson provided an in-depth staff report and responded to Council questions. Public Comment: None ---End of Public Comments--- ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to affirm the emergency services director proclamation dated July 17, 2020 authorizing the funding of certain projects and the purchase of certain equipment, supplies and services outside of regular purchasing Item 3 Packet Page 5 San Luis Obispo City Council Minutes of July 21, 2020 Page 2 B. $566,680-CARES ACT FUNDING Emergency Services Director Derek Johnson provided an in-depth staff report and responded to Council questions. Public Comment: None ---End of Public Comments--- ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER STEWART, CARRIED 5-0 to authorize the Finance Director to allocate $566,680 in CARES Act funding as followings: 1. Homeless Parking Programs $30,000 2. Due to the State order from July 14, 2020, augment the 2020-21 budget allocation for OpenSLO Parklets by $100,000 3. Small Business Grants $200,000 4. Reimburse City for Incurred COVID-19 Expenses $236,680 And authorizing the City Manager to move up to 10% between the categories as described in the Council Agenda Report. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Frank Owen ---End of Public Comment--- CONSENT AGENDA ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR GOMEZ, CARRIED 5-0 to approve Consent Calendar Items 1 thru 6. 1. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate. 2. MINUTES REVIEW – JUNE 25, 2020 AND JULY 7, 2020 CITY COUNCIL MEETING CARRIED 5-0, to approve the minutes of the City Council meeting held on June 25, 2020 And July 7, 2020 3. AUTHORIZE BID ADVERTISEMENT FOR BULLOCK LANE CORRUGATED METAL PIPE (CMP) REPLACEMENT, SPECIFICATION NO. 1000166 CARRIED 5-0, to: 1. Approve the Project Plans and Special Provisions for the Bullock Lane Corrugated Metal Pipe (CMP), Replacement Project; and 2. Authorize staff to advertise for bids; and 3. Authorize the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $300,000. Item 3 Packet Page 6 San Luis Obispo City Council Minutes of July 21, 2020 Page 3 4. AUTHORIZATION TO EXTEND CURRENT CONTRACTS FOR JANITORIAL AND LANDSCAPE MAINTENANCE SERVICES THROUGH DECEMBER 31, 2020 AND AUTHORIZE ADVERTISING A REQUEST FOR PROPOSALS FOR THOSE SERVICES IN THE YEAR 2021 CARRIED 5-0, to authorize the extension of existing janitorial and landscape contracts to December 31, 2020 to provide on-going services to the community while new RFPs are advertised, evaluated and new contracts awarded; and 1. Authorize the advertisement of janitorial and landscape Request for Proposals; and 2. Authorize the City Manager to award the janitorial and landscape contracts if within appropriated budgeted amounts. 5. ADOPT ORDINANCE NO. 1683 (2020 SERIES) AMENDING MUNICIPAL CODE SECTION 10.52.010 (PARKING METER ZONE RATES) TO REMOVE PREVIOUSLY ADOPTED RATE INCREASE CARRIED 5-0, to adopt Ordinance No. 1683 (2020 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Section 10.52.010 (Parking Meter Zone Rates) of the San Luis Obispo Municipal Code” to remove the previously adopted rate increase. 6. AUTHORIZATION TO ACCEPT FY 2020-21 GRANT AWARD FROM DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL CARRIED 5-0, to: 1. Authorize the Police Department to accept a grant award from the Department of Alcoholic Beverage Control for FY 2020-21 in the amount of $33,259; and 2. Adopt Resolution No. 11145 (2020 Series) entitled, “A Resolution of the Council of the City of San Luis Obispo, California, authorizing grant applications for funding provided through the Department of Alcoholic Beverage Control to increase education and enforcement programs focusing on regulating Retail Alcohol Outlets and authorizing the City Manager to execute all related grant documents;” and 3. Authorize the Chief of Police to execute all grant related documents and authorize the Finance Director to make the necessary budget adjustments. PUBLIC HEARING ITEMS AND BUSINESS ITEMS 7. RESULTS OF PUBLIC ENGAGEMENT AND OUTREACH EFFORTS AND CONSIDERATION OF SUBMITTING TO THE VOTERS A COMMUNITY SERVICES/INVESTMENT MEASURE; AND AN INTRODUCTION OF AN ORDINANCE AMENDING EXISTING CHAPTER 3.15 ESSENTIAL SERVICES TRANSACTIONS (SALES) AND USE TAX AND REENACT IN FULL AMENDED CHAPTER 3.15 COMMUNITY SERVICES AND INVESTMENT IMPOSING A LOCAL TRANSACTIONS (SALES) AND USE TAX City Manager Derek Johnson, Deputy City Manager Greg Hermann, Assistant to the City Manager Ryan Betz and Dr. Richard Bernard, FM3 Research provided an in-depth staff report and responded to Council questions. Item 3 Packet Page 7 San Luis Obispo City Council Minutes of July 21, 2020 Page 4 Public Comments: Jessica Steely Jim Dantona ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER STEWART, CARRIED 5-0 to: 1. Receive a report on the results of public engagement and outreach efforts regarding SLO Forward, an effort to support community investment and economic recovery by maintaining and improving the type of City services and infrastructure the community values most; and 2. Adopt Resolution No. 11146 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, calling and giving notice of the holding of a General Municipal Election to be held Tuesday, November 3 , 2020, for submitting to the Voters a question whether to extend the existing, voter-approved Local Transaction (Sales) and Use Tax at a 1.5¢ rate, until ended by Voters and continue the vital role of the Citizens Revenue Enhancement Commission to ensure funds are spent consistent with community priorities;” and 3. Introduce Ordinance No. 1686 (2020 Series) entitled, “An Ordinance of the City Council and the People of the City of San Luis Obispo, California, amending existing Chapter 3.15 (Essential Services Transactions (Sales) and Use Tax) of the San Luis Obispo Municipal Code and reenacting in full Amended Chapter 3.15 (Community Services and Investment) imposing a Transactions (Sales) and Use Tax to be administered by the California Department of Tax and Fee Administration;” and 4. Adopt Resolution No. 11147 (2020 Series) entitled, “A Resolution of the Council of the City of San Luis Obispo, California, setting priorities for filing written Arguments regarding a City Measure and directing the City Attorney to prepare an Impartial Analysis;” and 5. Adopt Resolution No. 11148 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, providing for the filing of Rebuttal Arguments for City Measures submitted at Municipal Elections. With the recommended changes in the Staff Agenda Correspondence and direction to staff to bring back at the August 21, 2020 City Council Meeting, further consideration of the make- up of the REOC membership to include someone representing a sales generating business and consideration of strategic planning strategies for use of those funds. RECESS Council recessed at 9:35 p.m. and reconvened at 9:45 p.m., with all Council Members present. Item 3 Packet Page 8 San Luis Obispo City Council Minutes of July 21, 2020 Page 5 8. FIRE DEPARTMENT ANNUAL REPORT AND 2020-2021 STRATEGIC OPERATIONAL PLAN Fire Chief Keith Aggson provided an in-depth staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- ACTION: By consensus, the Council directed to receive and file the 2019-20 Fire Department Annual Report and 2020-21 Strategic Operational Plan. COUNCIL COMMUNICATIONS AND LIAISON REPORTS Council Member Pease updated the Council on a series of meetings she attended regarding a rail stop in the Roundhouse area. Council Member Stewart reminded the public that the City is accepting applications for the Diversity, Equity and Inclusion Task Force. ADJOURNMENT The meeting was adjourned at 9:30 p.m. The next Regular City Council Meeting is scheduled for Tuesday, August 18, 2020 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. __________________________ Teresa Purrington City Clerk APPROVED BY COUNCIL: XX/XX/2020 Item 3 Packet Page 9 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 3 Packet Page 10 Department Name: Finance Cost Center: 2001 For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Brigitte Elke, Finance Director SUBJECT: AMENDMENT TO THE CITY’S INVESTMENT POLICY AND MANAGEMENT PLAN RECOMMENDATION 1. As recommended by the Investment Oversight Committee (IOC), adopt an amendment to the City’s Investment Policy & Management Plan to incorporate an ESG Investing (ESG) approach (Attachment A); and 2. Direct staff to amend the current investment advisory agreement with PFM Asset Management LLC (PFM) to include ESG investing and authorize the City Manager to execute the amended agreement; and 3. Adopt a resolution (Attachment B) updating position, payment disbursement, and receipt authority. DISCUSSION Background The City’s investment portfolio for longer-term investments is managed by the City’s investment advisor PFM and overseen by the IOC. The guiding document for investments is the City’s Investment Policy & Management Plan (IPM) that was last updated in June 2015. The City has adopted a Socially Responsible Investing (SRI) strategy that is now integrated into the IPM under Section VII and disallows any investment of the City’s funds in tobacco products, including electronic cigarettes and tobacco-related products, and direct production or drilling of fossil fuels. In February 2020, the IOC under Committee Discussion considered whether to further narrow the investment scope by disallowing any investments into arms and war -related manufacturing. Staff was tasked with agendizing the item for the next meeting and the City’s investment advisor was asked to present such a consideration and its effects on the City’s investments at the next scheduled public meeting. Item 4 Packet Page 11 ESG Investing Based on the request from the IOC, staff and PFM reviewed the addition of the SRI policy but decided to instead present to the committee an expansion strategy that has gained much interest in the market over past few years. The strategy is referred to as ESG Investing, standing for Environment, Social, Governance, and is a holistic investment philosophy that does not just look at the end product, but the entire business cycle from material sourcing, manufacturing and sales to the company’s treatment of its employees, customers, and shareholders. This includes considerations for diversity and equity all the way to representing members of the governing board. As such, the ESG philosophy invests in companies that not only care for the environment but are socially engaged and govern the enterprise in a sustainable and conscientious way. How does ESG Investment Strengthen the City’s Investment Goals? By current policy, the City of San Luis Obispo engages in SRI by excluding tobacco products and fossil fuel related companies from its investment portfolio. To further align its investments with the overall organizational goals, the City Council could decide to add other exclusions to its SRI strategy. By considering adding ESG Investing, the approach would change from an investment strategy to an investment philosophy. The following chart compares the strategic consideration for a holistic approach through ESG Investing. Item 4 Packet Page 12 Strategy Exclusions / ESG Requirements Strategy Considerations Approach 1: Current Policy Policy Restrictions Industry Exclusions – Energy Services, Oil & Gas Producers, Refiners & Pipelines Sub-Industry Exclusions – Tobacco • Fossil Fuel exclusion achieved by prohibiting investment in issuers that are involved in the exploration, direct production, refinement, and transportation of fossil fuels. • Exclude tobacco manufacturers to eliminate exposure to this sector. Approach 2: Expanded SRI Policy Policy Restrictions + Additional Issuer Exclusions Industry/Sub-Industry Exclusions – Energy Services, Oil & Gas Producers, Refiners & Pipelines, Tobacco Additional Industry Exclusions - Aerospace & Defense, Paper & Forestry • Several companies in the Aerospace & Defense industry are involved in the development of “controversial weapons” and small arms development. • Excluding the Paper & Forestry industry would reduce exposure to the use of forest resources for the production of paper, wood, and related products. Approach 3: ESG Investment Policy Restrictions + Additional Issuer Exclusions + Additional ESG Investment Objectives Industry/Sub-Industry Exclusions – Energy Services, Oil & Gas Producers, Refiners & Pipelines, Aerospace & Defense, Paper & Forestry, Tobacco • See above ESG Integration - ESG risk rating lower than 30 (medium or better risk category) Top ESG Performers – ESG risk rating lower than 40 and ESG risk rating scores in the top quartile (25%) of the issuer’s subindustry • Achieves broader ESG objectives. Provides rules-based, quantitative approach to identify issuers that maintain lower exposure to unmanaged material ESG risks. • Top ESG Performers exclusion rewards top performers in industries with higher ESG risk exposure. What is the impact regarding Eligible Issuers? If the City considers an ESG Investing approach, the portfolio of eligible users would shrink by about 15% from 124 to 105 issuers. Provided the current make-up of the City’s portfolio, there is no change in issuers from the current policy limitations to an expanded one excluding arms, weapons, and defense industries. Item 4 Packet Page 13 Advisory Body Recommendation On May 14, 2020, the IOC received a presentation from the City’s investment advisor PFM on the merits of ESG investing. The presentation (Attachment C) outlined the overarching approach under ESG and compared it to considerations of Socially Responsible Investing (SRI) which is a strategy based on exclusion of companies on the merit of their final product. The committee voted unanimously to recommend to the City Council to change the City’s Investment Policy and Management Plan to include ESG investing and to begin the gradual change to pursue said strategy (Attachment D – IOC Draft Minutes). Next Steps If the Council approves the recommendation, staff will amend the agreement with PFM to reflect the change in investment strategy. PFM will then work with the IOC to: a) Determine ESG investment objective and parameters b) Identify ESG eligible permitted investments based on ESG investing parameters c) Begin the gradual change to ESG investing d) Monitor the ESG risk ratings of the investments in the City’s portfolio e) Review, discuss, and refine the investment approach as needed Update of the Investment Policy and Investment Management Plan Staff took this opportunity to review the current Investment Policy & Management Plan and to update any sections according to best practices. The document presented tonight contains the recommended changes and aligns with the California Municipal Treasurer Association (CMTA) Investment Policy Certification Program. Item 4 Packet Page 14 Additionally, staff updated the titles of the Investment Oversight Committee members referenced in the document to reflect any changes that have occurred since the last update in 2015 i.e. City Administrative Officer to City Manager. Policy Context The City’s Investment Management Plan and Policies guides the City’s investment st rategy. It was last update and approved by Council on June 23, 2015. Public Engagement The Investment Oversight Committee is an advisory board to the City Council and meets once a quarter in sessions open to the public. The ESG presentation was given on May 14, 2020. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: Ongoing Fiscal Analysis: The ESG strategy will not change the underlining goals of the City’s investment portfolio, nor its potential rate of return. The portfolio will be changed over time when securities mature, requiring new investment vehicles that will align with the adopted strategy and ESG investing goals. ALTERNATIVES 1. The City Council could decide to instead expand the criteria of the adopted SRI strategy by further excluding sectors such as weapon manufacturing, the Aerospace and Defense Industry and small arms development. 2. The Council could decide to keep only the current strategy in place. Attachments: a - City of San Luis Obispo Investment Policy & Managment Plan (Redlined) b - Draft Resolution c - ESG Investment Solutions Presentation dated May 2020 d - IOC Draft Minutes dated 05/14/2020 Item 4 Packet Page 15 INVESTMENT POLICY & MANAGEMENT PLAN August 18, 2020 Item 4 Packet Page 16 INVESTMENT MANAGEMENT PLAN Introduction Table of Contents Policy Statement ..................................................................................................................................... 1 Primary Investment Objective ................................................................................................................. 1 Scope of Investment Management Plan .................................................................................................. 3 Use of State Guidelines ........................................................................................................................... 3 Preparation and Administration of the Plan ............................................................................................ 4 Ethics and Conflict of Interest ..................................................................................................... 4 Investment Authority and Responsibilities Authorized Investment Officers .............................................................................................................. 5 Internal Controls...................................................................................................................................... 5 Investment Management Resources ........................................................................................................ 5 Evaluation of Investment Officer Actions .............................................................................................. 6 Responsibilities of an Investment Advisor .............................................................................................. 7 Capital Preservation and Risk Overview ................................................................................................................................................. 9 Portfolio Diversification Practices .......................................................................................................... 9 Eligible Financial Institutions Portfolio Diversification and Credit-Worthiness Standards .................................................................. 10 Certification and Reporting Requirements ............................................................................................ 10 Individual Placement of Investments .................................................................................................... 10 Individual Placement of Deposits ......................................................................................................... 11 Investment Vehicles State of California Limitations .............................................................................................................. 12 Suitable and Authorized Investments .................................................................................................... 12 Review of Investment Portfolio ............................................................................................................ 15 City Policies .......................................................................................................................................... 15 Authorized Investment Summary ......................................................................................................... 17 Investment Maturity ........................................................................................................................................ 18 ESG Investing ................................................................................................................................................... 19 Cash Management Practices............................................................................................................................ 20 Evaluation of Investment Performance .......................................................................................................... 21 Investment Reporting ....................................................................................................................................... 22 Investment Management Plan Review ........................................................................................................... 24 Glossary .............................................................................................................................................................. 25 Item 4 Packet Page 17 I. INTRODUCTION 1 PURPOSE POLICY STATEMENT The City of San Luis Obispo shall invest public funds in such a manner as to comply with state and local laws; ensure prudent money management; provide for daily cash flow requirements; and meet the objectives of the Investment Policy & Management Plan in priority order of Safety, Liquidity, and Return on Investment. The purpose of the investment policy and management plan is to establish policies, practices and procedures to be used in administering the City's investment portfolio in accordance with the City's Statement of Investment Policy. PRIMARY INVESTMENT OBJECTIVE The City's primary investment objective is to achieve a reasonable rate of return on public funds while minimizing the potential for capital losses arising from market changes or issuer default. Although the generation of revenues through interest earnings on investments is an appropriate City goal, the primary consideration in the investment of City funds is capital preservation in the overall portfolio. As such, the City's yield objective is to achieve a reasonable rate of return on City investments rather than the maximum generation of income, which could expose the City to unacceptable levels of risk. In determining individual investment placements, the following factors shall be considered in priority order: 1. Safety 2. Liquidity 3. Yield – (Return on Investment). Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. The objective is to mitigate credit risk and interest rate risk summarized as follows: Credit Risk. Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City shall mitigate credit risk by adopting the following strategies: 1. Limiting investments to the safest types of securities. 2. Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the City will do business. If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City. 3. It is the intent of the City to diversify the investments within the portfolio to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions or maturities. The asset allocation in the portfolio should, however, be flexible depending upon the outlook for the economy, the securities market, and the City’s anticipated cash flow needs. Item 4 Packet Page 18 I. INTRODUCTION 2 4. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and instrumentalities approved local agency investment pools, LAIF, money market funds, and the City’s main financial institution. 5. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or the City’s risk preferences. 6. If securities owned by the City are downgraded by either Moody’s or S&P to a level below the quality required by this Investment Management Plan, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. a. If a security is downgraded below the level required by this policy, the City Treasurer determine whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. b. If a decision is made to retain a downgraded security in the portfolio, it will be monitored and reported monthly to the City Council. Interest Rate Risk. Interest rate risk is the risk that the portfolio will decline in value (or will not optimize its value) due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate interest rate risk by providing adequate liquidity for short-term cash needs, and by making some longer-term investments only with funds that are not needed for current cash flow purposes. The City further recognizes that certain types of securities, including variable rate securities, securities with principal pay downs prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to interest rate risk: 1. The maximum stated final maturity of individual securities in the portfolio shall be five years, except that up to 10% of the portfolio can be invested in Treasury and GSE securities maturing over 5 years. 2. The City shall maintain a minimum of three months of budgeted operating expenditures in short term investments. The level of operating expenses shall be measured once per year and shall be based on the most recently adopted budget. 3. The duration of that part of the portfolio that is not needed for liquidity purposes shall typically be approximately equal to the duration of an index of US Treasury and Federal Agency Securities with maturities which meet the Authority’s needs for cash flow and level of risk tolerance (the Benchmark Index) plus or minus 10%. Item 4 Packet Page 19 I. INTRODUCTION 3 Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short-term funds. Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Yield: Return on Investments. The City’s investment portfolio shall be designed with the objective of attaining a market benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio. Return on investment is of least importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a reasonable return relative to the risk being assumed. SCOPE OF INVESTMENT MANAGEMENT PLAN Included in the scope of the City's Investment Policy & Management Plan are the following major guidelines and practices to be used in achieving the City's primary investment objective: 1. Investment authority and responsibilities 2. Capital preservation and risk 3. Eligible financial institutions 4. Allowable investment vehicles 5. Investment maturity 6. Cash management 7. Evaluation of investment performance 8. Investment reporting 9. Investment management plan review 10. Socially responsible investment guidelines These guidelines apply to all cash-related assets included within the City’s Comprehensive Annual Financial Report (CAFR) and held either directly by the City or held and invested by trustees or fiscal agents. The only exception is funds invested in the City's deferred compensation plan, which are controlled by federal law, specific provisions of the City's adopted plan and individual employee decisions. USE OF STATE GUIDELINES The California Government Code (including sections 16429.1, 16481.2, 53600-53609, 53630- 53634, 53635, 53635.2, 53635.3, 53635.8, 53637-53638 and 53684) regulates public agency investment and investment reporting practices. It is the policy of the City of San Luis Obispo to use the State's provisions for local government investments in developing and implementing the City's investment policies and practices. Item 4 Packet Page 20 I. INTRODUCTION 4 PREPARATION AND ADMINISTRATION OF THE PLAN As set forth in the Statement of Investment Policy, the City Treasurer is responsible for developing and monitoring the Investment Policy & Management Plan. As recommended by Government Code Section and 53646, the Investment Oversight Committee Council will review the Investment Policy & Management Plan annually. The Council will review the Investment Policy & Management Plan at a public meeting when changes in strategies, practices or procedures are proposed by the Investment Oversight Committee. In the interim, the City Treasurer is responsible for keeping the Investment Policy & Management Plan up to date to reflect changes in legislation, organizational structure, and other policies and administrative procedures approved by the Council. ETHICS AND CONFLICT OF INTEREST Investment Officials shall refrain from personal business activity that could conflict with proper execution and management of the policy and the investment management plan, or which could impair their ability to make impartial decisions. Investment Officials must provide a public d isclosure document by April 1st of each year or when material interest in financial institutions or personal investment positions require it. Furthermore, Investment Officials must refrain from undertaking personal investment transactions with the same individuals(s) employed by the financial institution with which business is conducted on behalf of the City. Item 4 Packet Page 21 5 II. INVESTMENT AUTHORITY AND RESPONSIBILITIES AUTHORIZED INVESTMENT OFFICERS Authority to manage the investment portfolio is granted to the Finance Director /City Treasurer) pursuant to Resolution No. 8477. Responsibility for the day- to-day operation of the investment program may be delegated to the Finance Operations Manager, who is responsible for carrying- out established written procedures and internal controls for the operation of the investment program consistent with this plan. These procedures should include references to safekeeping, delivery vs payment, investment accounting, repurchase agreements, wire transfer agreements, collateral/depository agreements and banking services contracts. Transactions Directed by City Staff. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the F i n a n c e Director/City Treasurer. Although the Finance Director/City Treasurer may delegate these duties to another official in the Department of Finance, every investment transaction must be reviewed and approved by the Finance Director/City Treasurer. Additionally, the Finance Director/City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Transaction Directed by an Investment Advisor. The City may engage the services of an external investment adviser to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. The external investment adviser may be granted discretion to purchase and sell investment securities in accordance with the City’s Investment Policy and this Investment Management Plan. The investment adviser must be registered under the Investment Advisers Act of 1940. (The investment advisor shall be required to provide a certification that it has read and understands the applicable sections of the California Government Code relating to municipal investments, this Investment Management Plan and the City’s Investment Policy). INTERNAL CONTROLS The Finance Director/City Treasurer is responsible for ensuring compliance with the City's Investment Policy as well as for establishing systems of internal control designed to prevent losses due to fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by City officers and employees. Additionally, the Finance Director/City Treasurer is responsible for the physical security of City investments and shall use custodial safekeeping for negotiable and bearer instruments whenever possible. INVESTMENT MANAGEMENT RESOURCES The concept of reasonable assurance recognizes that the: 1. Cost of a control procedure should not exceed the benefits likely to be derived. 2. Valuation of costs and benefits requires estimates and judgments by management. Accordingly, the Finance Director/City Treasurer shall establish a process for annual independent review by an external auditor to assure compliance with policies and procedures. Item 4 Packet Page 22 6 II. INVESTMENT AUTHORITY AND RESPONSIBILITIES Internal controls shall address the following points: 1. Separating transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. 2. Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping as evidenced by safekeeping receipts in the City of San Luis Obispo’s name. 3. Avoiding physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. 4. Delivery versus payment. All trades where applicable will be executed by delivery vs payment (DVP). This ensures that securities are deposited in the eligible financial institution before the release of funds. Securities will be held by a third-party custodian as evidenced by safekeeping receipts. 5. Clearly delegating authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities. 6. Confirming telephone transactions for investments and wire transfers in writing. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead or e-mail and the safekeeping institution has a list of authorized signatures. 7. Developing wire transfer agreements with the lead bank or third-party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. EVALUATION OF INVESTMENT OFFICER ACTIONS The standard of prudence to be applied by the Finance Director of Finance/City Treasurer shall be the "prudent investor" standard, as defined under Government Code Section 53600.3 which states: When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. Item 4 Packet Page 23 7 II. INVESTMENT AUTHORITY AND RESPONSIBILITIES Investment officers acting in accordance with written procedures and this Investment Policy & Management Plan, and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this plan. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City. In accordance with Government Code Section 53607, the F i n a n c e D i r e c t o r / C i t y Treasurer shall prepare a report of monthly investment transactions for the City Council’s review. In addition, the City Council shall determine each year whether the delegation of investment authority to the Treasurer shall be renewed. RESPONSIBILITIES OF AN INVESTMENT ADVISOR When the services of an investment advisor are contracted for by the City, the responsibilities and obligations of the investment advisor shall be identified within the terms of the contract and shall, at a minimum, include the following: 1. Investment Advisor will provide investment research and supervision of the managed assets and conduct a continuous program of investment, evaluation and, when appropriate, sale and reinvestment of the managed assets. 2. Investment Advisor shall continuously monitor investment opportunities and evaluate investments of the managed assets. Investment Advisor shall furnish City with statistical information and reports with respect to investments of the managed assets. 3. Investment Advisor shall place all orders for the purchase, sale, or exchange of portfolio securities for City's account with brokers or dealers recommended by Investment Advisor and/or City, and to that end Investment Advisor is authorized as agent of City to give instructions to the custodian designated by City (the “Custodian’) as to deliveries of securities and payments of cash for the account of City. 4. In connection with the selection of such brokers and dealers and the placing of such orders, Investment Advisor is directed to seek for City the most favorable execution and price, the determination of which may take into account, subject to any applicable laws, rules and regulations, whether statistical, research and other information or services have been or will be furnished to Investment Advisor by such brokers and dealers. 5. Investment Advisor shall not take possession of or act as custodian for the cash, securities or other assets of City and shall have no responsibility in connection therewith. Item 4 Packet Page 24 8 II. INVESTMENT AUTHORITY AND RESPONSIBILITIES 6. Authorized investments shall include only those investments which are currently authorized by the state investment statutes, and City’s investment policy, and as supplemented by such other written instructions as may from time to time be provided by City to Investment Advisor. 7. Investment Advisor shall be entitled to rely upon City's written advice with respect to anticipated drawdowns of managed assets. 8. Investment Advisor will observe the instructions of City with respect to broker/dealers who are approved to execute transactions involving the managed assets and in the absence of such instructions will engage broker/dealers who Investment Advisor reasonably believes to be reputable, qualified and financially sound. Item 4 Packet Page 25 9 OVERVIEW Some level of risk is inherent in any investment transaction. Losses may be incurred due to issuer default, market price changes or technical cash flow complications such as investments in non - marketable certificates of deposit. Diversification of the City's portfolio by institution, investment vehicle and maturity term is the primary tool available to the City in minimizing investment risk and capital losses by safeguarding the overall portfolio from any individual loss. PORTFOLIO DIVERSIFICATION PRACTICES The following sections summarize the City's major portfolio diversification practices and guidelines in determining: 1. Eligible financial institutions 2. Investment vehicles 3. Investment maturity Portfolio limitations included in these guidelines are to be based on the portfolio composition and Investment Management Plan policies in effect at the time of placement; the actual composition of the City's investments may vary over time from plan limitations due to overall portfolio changes from when the individual placement was made as well as changes in the City's Investment Management Plan. Credit criteria listed in these guidelines refer to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Finance Director/City Treasurer will consult with the Investment Advisor and perform a timely review to decide whether to sell or hold the investment. III. CAPITAL PRESERVATION AND RISK Item 4 Packet Page 26 10 IV. ELIGIBLE FINANCIAL INSTITUTIONS PORTFOLIO DIVERSIFICATION AND CREDIT-WORTHINESS STANDARDS The following general criteria relating to portfolio diversification and creditworthiness will be used in selecting depositories and broker/dealers (financial institutions) in the placement of City investments: 1. The financial capacity and creditworthiness of the financial institution shall be considered before the placement of City investments. 2. Current financial statements shall be maintained for each institution in which or through which cash is invested. 3. No more than 5% of the City's portfolio (exclusive of the US Government, its agencies and instrumentalities approved local agency investment pools and money market funds government agency issues, or LAIF and money market funds, and the City’s main financial institution) shall be placed with any financial institution. 4. No more than 25% of the City's portfolio shall be invested in collateralized certificates of deposit issued by savings and loan institutions. 5. Certificates of deposit placed by the City shall not constitute more than 15% of the total assets of the institution; and the institution must have total assets in excess of $200 million. CERTIFICATION AND REPORTING REQUIREMENTS Unless the City has engaged an investment advisor, the City shall establish a list of qualified securities dealers based on a certification submitted by all financial institutions with which the City has an investment relationship. The certification shall state that the institution has reviewed the City's Investment Management Plan and that it will: 1. Exercise due diligence in monitoring the activities of its officers and employees engaged in transactions with the City. 2. Ensure that all of its officers and employees offering investments to the City are trained in the precautions appropriate to public sector investments. 3. Submit audited financial statements prepared by an independent certified public accountant to the City on an annual basis within 180 days after the end of the institution's fiscal year. INDIVIDUAL PLACEMENT OF INVESTMENTS A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by creditworthiness (e.g., a minimum capital requirement of $10,000,000 and at least five years of operation). These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate: Item 4 Packet Page 27 11 IV. ELIGIBLE FINANCIAL INSTITUTIONS 1. Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines 2. Proof of National Association of Securities Dealers (NASD) certification (not applicable to Certificate of Deposit counterparties) 3. Proof of state registration 4. Certification of having read and understood and agreeing to comply with the applicable sections of the California Government Code and the City’s Investment Policy and that all securities recommended shall be suitable for the City of San Luis Obispo. The investment advisor (or City staff if applicable) will strive to obtain competitive bids from at least three brokers or financial institutions on all purchases and sales of investment instruments whenever possible. INDIVIDUAL PLACEMENT OF DEPOSITS Individual placement of collateralized certificates of deposit with eligible financial institutions shall be based on the following practices and procedures: 1. Deposits shall only be placed with financial institutions maintaining offices within the City of San Luis Obispo. 2. Unless collateralized by eligible securities as provided in Sections 53651 and 53652 of the Government Code, the maximum number of Certificates of Deposit to be placed with any single institution is the amount up to the Federal Deposit Insurance Corporation (FDIC) limit. 3. Reasonable efforts will be made to place deposits of less than the FDIC limit with each eligible institution. Any deposits in excess of this amount shall be awarded based on competitive bids. Documentation relating to rate quotes shall be maintained by Finance for six months. 4. Within the context of the City's policies regarding competitive bidding and portfolio limitations, deposits shall be distributed as evenly as possible between financial institutions. Item 4 Packet Page 28 12 V. INVESTMENT VEHICLES STATE OF CALIFORNIA LIMITATIONS As provided in the applicable sections of the Government Code (53601 + 53601.6), the State of California limits the investment vehicles available to local agencies. SUITABLE AND AUTHORIZED INVESTMENTS City funds may be invested in the following to diversify the investments by security type and institutions subject to the following restrictions: 1. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and instrumentalities, approved local agency investment pools, LAIF, money market funds, and the City’s main financial institution. 2. The maximum stated final maturity of individual securities in the portfolio shall be five years, except that up to 10% of the portfolio can be invested in Treasury, municipal, and GSE securities maturing over 5 years. 3. The City shall maintain a minimum of three months of budgeted operating expenditures in short term investments. The level of operating expenses shall be measured once per year and shall be based on the most recently adopted budget. 4. The duration of that part of the portfolio that is not needed for liquidity purposes shall typically be approximately equal to the duration of an index of US Treasury and Federal Agency Securities with maturities which meet the Authority’s needs for cash flow and level of risk tolerance (the Benchmark Index) plus or minus 10%. 5. Treasury Obligations: Treasury bills, Treasury notes, Treasury bonds and Treasury STRIPS with maturities not exceeding five years from the date of purchase. 6. Federal Agency or Government Sponsored Enterprise (GSE) Securities: Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises with maturities not exceeding five years from the date of purchase. 7. Municipal Securities: include obligations of the City, the State of California, any of the other 49 states, and any local agency within the State of California, provided that the securities are rated “A” or higher by at least one nationally recognized statistical rating organization. No more than 30% of the portfolio may be invested in these securities and no more than 5% of the portfolio may be invested in any issuer. 8. Commercial Paper: With “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper must meet all of the following conditions in either paragraph a or paragraph b: a) The entity meets the following criteria: (i) is organized and operating in the United States as a general corporation, (ii) has total assets in excess of five hundred million dollars ($500,000,000), and (iii) has debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO. Item 4 Packet Page 29 13 V. INVESTMENT VEHICLES b) The entity meets the following criteria: (i) is organized within the United States as a special purpose corporation, trust, or limited liability company, (ii) has program-wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond, and (iii) has commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO. Eligible commercial paper will have a maximum maturity of 270 days or less. No more than 40% of the City’s portfolio may be invested in commercial paper. The City may purchase no more than 10% of the outstanding commercial paper of any single issuer. 9. Medium Term Notes: Issued by corporations organized and operating in the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S., except financial institutions shall not be considered. At the time of purchase, the notes must mature within five years and must be rated in the “A” category or better by two or more nationally recognized statistical-rating organizations (NRSRO). If the notes are issued by a financial institution they must be rated in the “AA” category or better by one or more NRSRO. At the time of purchase, no more than 30% of the City’s portfolio may be invested in medium term notes and no more than 5% of the City’s portfolio may be invested in any one issuer. 10. Bankers’ Acceptances: Not exceeding 180 days to maturity. At the time of purchase, no more than 40% of the City’s surplus funds may be invested in bankers’ acceptances and no more than 5% of the City’s surplus funds may be invested in bankers’ acceptances from any one bank. 11. Repurchase Agreements: With a term of the agreement not exceeding one year, collateralized by U.S. Treasury and agency securities listed in items 1 and 2 above. The value of the collateral underlying the agreement shall be 102%. The market value of the collateral shall be marked-to-the-market at least weekly based on the bid price and adjustments made when the value falls below 102%. Collateral shall be held in the City’s custodial bank as safekeeping agent. Repurchase Agreements shall be entered into only with dealers who have executed a Master Repurchase Agreement with the City and who are recognized as Primary Dealers with the Market Reports Division of the Federal Reserve Bank of New York. There are no limitations on the amount that can be invested in repurchase agreements. No more than 25% of the portfolio can be invested with any one financial institution. 12. Local Agency Investment Fund (LAIF): A local government investment pool established by the State Treasurer of California for the benefit of California local agencies. City funds can be invested in LAIF up to the maximum permitted by State Law. 13. Negotiable Certificates of Deposit: Issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally or state-licensed branch of a foreign bank. At the time of purchase, the maturity of the certificate may not exceed five years, must be rated at least “AA” or “A-1” by one or more NRSRO, no more than 30% of the City’s surplus funds may be invested in certificates of deposit and no more than 5% of the City’s surplus funds may be invested in certificates from any one bank. Item 4 Packet Page 30 14 V. INVESTMENT VEHICLES 14. Collateralized Bank Deposits: Shall be evaluated in term of Federal Deposit Insurance Corporation (FDIC) coverage. For deposits in excess of the FDIC insured limit, approved collateral at the percentage above market value as specified by California Government Code, Sections 53651 et seq. and Sections 53652 et seq. shall be required. No more than 25% of the portfolio can be placed with any one financial institution. This limit may be exceeded if necessary, to allow the City to meet its short-term operational needs. 15. Money Market Mutual Funds: Shall be registered under the Investment Company Act of 1940. To be eligible for investment pursuant to this subdivision, these companies will either: (i) attain the highest-ranking letter or numerical rating provided by at least two NRSROs or (ii) have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000. At the time of purchase, no more than 20% of the City’s surplus funds may be invested in money market mutual funds and no more than 10% of the City’s surplus funds may be invested in any one fund. 16. Local Government Investment Pools: Shares of beneficial interest issued by a joint powers authority (Local Government Investment Pools) organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (o) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers’ authority. The Pool will be rated in a rating category “AAA” or its equivalent by a NRSRO. To be eligible under this section, the shares will maintain a stable net asset value (NAV) and the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: a) The adviser is registered or exempt from registration with the Securities and Exchange Commission. b) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o) Government Code Section 53601, inclusive. c) The adviser has assets under management in excess of five hundred million dollars ($500,000,000). 17. Investments in Community Banks Provided that the requirements of these guidelines and California Code sections 53630-53653 are adhered to, funds may be invested in community banks within the San Luis Obispo County service area under the following criteria: a) The bank must be based and have its headquarters in San Luis Obispo County, with at least one branch within the City of San Luis Obispo. b) As indicated by Government Code Section 53635.2, the bank must receive an overall rating of not less than “satisfactory” from the appropriate federal supervisory agency for meeting the criteria specified in Section 2906 of Title 12 of the U.S. Code Item 4 Packet Page 31 15 V. INVESTMENT VEHICLES (Community Reinvestment Act of 1977). c) The bank must provide certification and supporting information that indicates at least 25% in loans is invested within the City of San Luis Obispo. d) To ensure the City obtains a competitive rate for investments in the program, any potential investment or proposal must enjoy a rate of return equal to or greater than the Local Agency Investment Fund (LAIF) average quarterly rate existing at the time of the investment; e) Participating banks shall make a presentation to the City of San Luis Obispo Investment Oversight Committee about their community involvement at least once per year. f) Upon the Investment Oversight Committee’s review of community involvement, the existing investment will be evaluated for renewal by City finance staff. REVIEW OF INVESTMENT PORTFOLIO The securities held by the City must be in compliance as outlined under “Suitable and Authorized Investments” at the time of purchase. Because some securities may not comply with said section subsequent to the date of purchase, the Finance Director/City Treasurer shall at least annually review the portfolio to identify those securities that doe no longer comply. The Finance Director/City Treasurer shall establish procedures to report to the Investment Oversight Committee any major and/or critical incidences of noncompliance identified through the review of the portfolio. CITY POLICIES Debt Funds. Reserve funds from the proceeds of debt issues shall be invested by the Finance Director/City Treasurer in accordance with bond covenants. Deferred Compensation. These policies do not apply to deferred compensation plans. Individual investment policies are adopted by each deferred compensation plan and approved independently by Council. Furthermore, individual investments are directed solely by the employee. Prohibited Investment Vehicles and Practices 1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to, mutual funds (other than money market funds as described above in No. 10), unregulated and/or unrated investment pools or trusts, collateralized mortgage obligations and futures and options. 2. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes or mortgage derived interest-only strips is prohibited. 3. Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited. 4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited. 5. Purchasing or selling securities on margin is prohibited. 6. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited without Council approval. Item 4 Packet Page 32 16 V. INVESTMENT VEHICLES 7. The City is allowed to invest in mortgage pass-through and asset-backed securities, provided that such securities have a maximum stated final maturity of five years and are rated AA by Standard & Poor’s or Aa by Moody’s; and that purchase of such securities does not exceed 20% of the portfolio. However, given the “melt-down” in these types of securities in 2007 – even when rated “AAA/aaa” by NRSRO’s – the City will not invest in these securities. Item 4 Packet Page 33 17 V. INVESTMENT VEHICLES AUTHORIZED INVESTMENTS SUMMARY Investment Type Government Code Maximum Maturity Maximum % of Portfolio Quality Requirements San Luis Obispo Maximum Maturity Maximum % of Portfolio Quality Requirements 1. Treasury Obligations 5 Years None None 5 Yearsa None None 2. GSE Securities 5 Years None None 5 Yearsa None None 3. Municipal Securitiesb 5 years None None 5 yearsa 30% per type; 5% per issuer “A” or better 4. Commercial Paper 270 Days 25% per type; none per issuer A-1/P-1/F-1; Long-term “A” 270 Days 25% per type; 10% per issuer A-1/P-1/F-1; Long-term “A” 5. Medium Term Notes 5 Years 30% per type; none per issuer “A” 5 Years 30% per type; 5% per issuer “A” or better “AA” or better for financial issuers 6. Bankers’ Acceptances 180 Days 40% per type; 30% per issuer None 180 Days 40% per type; 5% per issuer None 7. Repurchase Agreement 1 Year None None 1 Year None per type; 5% per counterparty Primary Dealers/ Collateralization requirements 8. LAIF N/A None None N/A Limit per Gov’t Code None 9. Negotiable CDs 5 Years 30% per type; none per issuer None 5 Years 30% per type; 5% per issuer “AA” or “A-1” 10. Collateralized Bank Deposits 5 Years None None 5 Years Non per type; 25% per institution None 11. Money Market Mutual Funds N/A 20% per type; 10% per issuer Highest rating of at least two NRSRO N/A 20% per type; 10% per issuer Highest rating of at least two NRSRO 12. Local Government Investment Pools (LGIPs) N/A N/A Advisor requirements N/A N/A Advisor requirements/“AAA” a. Up to 10% of the portfolio can be invested in Treasury and GSE securities maturing over 5 years. This includes municipal obligations. b. Includes State Obligations, City of San Luis Obispo obligations and California Local Agency obligations Item 4 Packet Page 34 18 In addition to the risks associated with the creditworthiness of the financial institution and the security of the investment vehicle, the maturity period of investments is also a significant consideration in the management of the City's portfolio. In order to minimize the impact of market risk, it is intended that all investments will be held until maturity. In implementing this policy, the following guidelines will be used: 1. Projected cash flow requirements are the primary factor to be used in determining investment maturity terms. 2. After cash flow needs have been met, investments may be structured in longer-term securities within a disciplined investment program and process that is based on long-term expectations and is not speculative. 3. Investments may be sold before maturity for cash flow purposes or to rebalance the risk profile of the portfolio. 4. Council approval to make investments with terms in excess of 5 years is required at least three months prior to the initial investment. VI. INVESTMENT MATURITY Item 4 Packet Page 35 19 City investments will be guided by Socially Responsible and ESG investment considerations and requirements. As such, the City’s investment in non 1. Priority shall be given to investments in entities that support community well-being through safe and environmentally sound practices and fair labor practices. 2. Priority shall be given to investments in entities that promote equality of rights regardless of race, religion, color, ancestry, age, national origin, gender, marital status, sexual orientation, disability or place of birth. 3. Priority shall be given to investments in entities that promote community economic development. In addition, the direct investment of City funds is restricted as follows: 1. No investments are to be made in tobacco, electronic cigarette, or tobacco-related products. 2. No investments are to be made to support the direct production or drilling of fossil fuels. The City Treasurer shall periodically verify compliance with the guidelines either through direct contact with the company or with its Investors Responsibility Center. Environmental, social, and governance (“ESG”) investing is the process of incorporating the analysis of non-financial environmental, social, and governance factors into investment decisions alongside more traditional financial criteria. It is the City’s objective to integrate ESG factors into investment decisions for its investment portfolio to the extent practical and possible. In order to achieve this objective, the City will develop and apply ESG investment criteria to authorized corporate obligations, including bankers’ acceptances, commercial paper, medium-term notes, and negotiable certificates of deposit for purposes of determining investment eligibility. The ESG investment criteria will be based on the ESG risk ratings, industry and sub -industry definitions, and subindustry rankings provided by Sustainalytics. The ESG investment criteria may include industry exclusions, ESG risk rating limitations, and eligibility exceptions for issuers that are top performers within their subindustry. The ESG criteria will be reviewed annually by City’s Investment Oversight Committee. If a previously purchased investment no longer satisfies the City’s ESG investment criteria, the City will continue to hold that investment to maturity unless the City directs its investment advisor to sell the investment. VII. SOCIALLY RESPONSIBLE INVESTING ESG INVESTING Item 4 Packet Page 36 20 19 To achieve a reasonable return on public funds, the following cash management practices will be followed: 1. Maintain maximum investment of all City funds not required to meet immediate cash flow needs while maintaining adequate compensating balances as required under the City’s banking services agreement. 2. Pool resources available for investment from all City-administered funds, with interest earnings allocated to each of the funds in accordance with generally accepted accounting principles. 3. Maximize the City’s cash flow through the immediate deposit of all cash receipts, use of direct deposits and wire transfers when available, and appropriate timing of payments to vendors. 4. Maximize the cash flow information available by using only one operating bank account. VIII. CASH MANAGEMENT PRACTICES Item 4 Packet Page 37 21 As indicated in the Introduction section of this document, it is the City’s primary investment objective to achieve a reasonable rate of return on public funds while minimizing risks and preserving capital. In evaluating the performance of the City’s overall portfolio in achieving this objective, it is expected that yields on City investments will regularly meet or exceed the average return on three-month U. S. Treasury Bills. It is also expected that the portfolio managed by the investment advisor will meet or exceed the Bank of America Merrill Lynch 0-to-5-year U.S. Treasury Bond Index. IX. EVALUATION OF INVESTMENT PERFORMANCE Item 4 Packet Page 38 X. INVESTMENT REPORTING 22 Consistent with the guidance provided by California Government Code Section 53646 and the City’s practice of reviewing the Financial Policies each year, the Finance Director/City Treasurer may submit the Investment Policy to the Council for consideration at a public meeting. This statement will generally be reviewed by the Council in conjunction with the Financial Plan review and approval process. In accordance with this Statement of Investment Policy, the City Treasurer is responsible for developing and maintaining this Investment Management Plan. Though optional, pursuant to California Government Code Section 53646 (b)(1), the Finance Director/City Treasurer will provide the Council and Investment Oversight Committee with a quarterly investment report providing the following information for each investment or security: 1. Issuer (financial institution) 2. Type of investment 3. Amount paid for the investment 4. The par amount of the investment, if applicable 5. Certificate or other reference number if applicable 6. Percentage yield on an annualized basis 7. Purchase date 8. Maturity date for each investment and the weighted average maturity of all the investments within the portfolio 9. Current book value 10. Current market value 11. Total cost and market value, including source of this valuation, of the City's portfolio 12. A description of the compliance with the Statement of Investment Policy 13. Information demonstrating that the City's expenditure requirements can be met in the following six months 14. Other information regarding the City's portfolio as appropriate The Investment Report shall include all investments as of the end of the quarter from all funds held in the City's portfolio, including funds held and invested by trustees exclusive of deferred compensation plan funds; and shall be issued within 30 days after the end of the quarterly reporting period. Item 4 Packet Page 39 X. INVESTMENT REPORTING 23 1. Within 60 days from the start of each fiscal year, the City Treasurer shall provide the Investment Oversight Committee (IOC) with the value that represents the City’s minimum liquidity requirement which is equal to 3 months of operating costs based on the most recently adopted annual budget. Any adjustments to this amount which the Treasurer feels are required to meet cash demands from time to time shall be identified by the Treasurer at each meeting of the IOC as these amounts become known. 2. At the regularly scheduled IOC meeting which next follows the end of a fiscal year, the Treasurer shall file a report which identifies how the invested balances were adjusted to accommodate the City’s liquidity requirement and the extent to which investment maturity limits were adjusted to follow the City’s benchmark duration value. Item 4 Packet Page 40 XII. GLOSSARY 24 23 The Finance Director/City Treasurer shall review the City's Investment Policy & Management Plan on an ongoing basis to ensure its continued effectiveness and value in administering the City's portfolio. Additionally, the City shall maintain an Investment Oversight Committee whose membership shall consist of the Mayor, the City Manager, the Finance Director/City Treasurer, the Accounting Manager/Controller, the Principal Budget Analyst, and a member of the public at large. The Investment Oversight Committee is responsible for: 1. Reviewing the City's portfolio at least quarterly to determine compliance with the Investment Policy & Management Plan; and 2. Reviewing and making recommendations as appropriate regarding the City's investment policies and practices at least annually. It is important to note the distinction between the committee's oversight responsibility in ensuring compliance with the policies and overall framework established in this plan, and the responsibility of the Finance Director/City Treasurer in managing the City's investment portfolio in accordance with this plan. This distinction between management and oversight is especially important as it applies to the role of the City's independent auditors. The committee's oversight function is consistent with the scope of the auditor's engagement duties, which includes reviewing for compliance with City financial policies and procedures, and for making recommendations for improvements in the City's fiscal operations. However, in this oversight context, the auditors retain their independence from responsibility for managing any aspects of the City's operations; this responsibility lies solely with the City's elected leadership and staff. XI. INVESTMENT POLICY & MANAGEMENT PLAN REVIEW Item 4 Packet Page 41 XII. GLOSSARY 25 Bankers’ Acceptances are short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at maturity. An acceptance is a high-grade negotiable instrument. Benchmark is a market index used as a comparative basis for measuring the performance of an investment portfolio. A performance benchmark should represent a close correlation to investment guidelines, risk tolerance and duration of the actual portfolio's investments. Bond is a financial obligation for which the issuer promises to pay the bondholder (the purchaser or owner of the bond) a specified stream of future cash flows, including periodic interest payments and a principal repayment. Broker-Dealer is a person or a firm who can act as a broker or a dealer depending on the transaction. A broker brings buyers and sellers together for a commission. They do not take a position. A dealer acts as a principal in all transactions, buying and selling for his own account. Certificates of Deposit 1. Negotiable Certificates of Deposit are large-denomination CDs. They are issued at face value and typically pay interest at maturity, if maturing in less than 12 months. CDs that mature beyond this range pay interest semi-annually. Negotiable CDs are issued by U.S. banks (domestic CDs), U.S. branches of foreign banks (Yankee CDs), and thrifts. There is an active secondary market for negotiable domestic and Yankee CDs. However, the negotiable thrift CD secondary market is limited. Yields on CDs exceed those on U.S. treasuries and agencies of similar maturities. This higher yield compensates the investor for accepting the risk of reduced liquidity and the risk that the issuing bank might fail. State law does not require the collateralization of negotiable CDs. 2. Non-negotiable Certificates of Deposit are time deposits with financial institutions that earn interest at a specified rate for a specified term. Liquidation of the CD prior to maturity incurs a penalty. There is no secondary market for those instruments, therefore, they are not liquid. They are classified as public deposits and financial institutions are required to collateralize them. Collateral may be waived for the portion of the deposits that are covered by FDIC insurance. Collateral refers to securities, evidence of deposits, or other property that a borrower pledges to secure repayment of a loan. It also refers to securities pledged by a bank to secure deposits. In California, repurchase agreements, reverse repurchase agreements, and public deposits must be collateralized. Commercial Paper is a short-term, unsecured, promissory note issued by a corporation to raise working capital. XII. GLOSSARY Item 4 Packet Page 42 XII. GLOSSARY 26 Corporate Note is a debt instrument issued by a corporation with a maturity of greater than one year and less than ten years. Delivery Versus Payment (“DVP”) is a settlement procedure in which securities are delivered versus payment of cash, but only after cash has been received. Most security transactions, including those through the Fed Securities Wire system and Depository Trust Company (“DTC”), are done DVP as a protection for both the buyer and seller of securities. Depository Trust Company (“DTC”) is a firm through which members can use a computer to arrange for securities to be delivered to other members without physical delivery of certificates. A member of the Federal Reserve System and owned mostly by the New York Stock Exchange, the Depository Trust Company uses computerized debit and credit entries. Most corporate securities, commercial paper, CDs, and BAs clear through DTC. Federal Agency Obligations are issued by U.S. Government Agencies or Government Sponsored Enterprises (“GSE”). Although they were created or sponsored by the U.S. Government, most Agencies and GSEs are not guaranteed by the United States Government. Examples of these securities are notes, bonds, bills and discount notes issued by Fannie Mae (“FNMA”), Freddie Mac (“FHLMC”), the Federal Home Loan Bank system (“FHLB”), and Federal Farm Credit Bank (“FFCB”). The Agency market is a very large and liquid market, with billions traded every day. Investment Advisor is a company that provides professional advice managing portfolios, investment recommendations and/or research in exchange for a management fee. Issuer means any corporation, governmental unit, or financial institution that borrows money through the sale of securities. Liquidity refers to the ease and speed with which an asset can be converted into cash without loss of value. In the money market, a security is said to be liquid if the difference between the bid and asked prices is narrow and reasonably sized trades can be done at those quotes. Local Agency Investment Fund (“LAIF”) is a special fund in the State Treasury that local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum of $50 million for any California public Agency. It offers high liquidity because deposits can be converted to cash in twenty-four hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly via direct deposit to the Agency’s LAIF account. The State keeps an amount for reasonable costs of making the investments, not to exceed one-quarter of one percent of the earnings. Market Value is the price at which a security is trading and could presumably be purchased or sold. Maturity is the date upon which the principal or stated value of an investment becomes due and payable. Item 4 Packet Page 43 XII. GLOSSARY 27 Medium-Term Notes are debt obligations issued by corporations and banks, usually in the form of unsecured promissory notes. These are negotiable instruments that can be bought and sold in a large and active secondary market. For the purposes of California Government Code, the phrase “Medium-Term” refers to a maximum remaining maturity of five years or less. They can be issued with fixed or floating-rate coupons, and with or without early call features, although the vast majority are fixed-rate and non-callable. Corporate notes have greater risk than Treasuries or Agencies because they rely on the ability of the issuer to make payment of principal and interest. Money Market Fund is a type of safe investment comprising a variety of short-term securities with high quality and high liquidity. The fund provides interest to shareholders and must strive to maintain a stable net asset value (“NAV”) of $1 per share. NRSRO is a “Nationally Recognized Statistical Rating Organization.” A designated rating organization that the SEC has deemed a strong national presence in the U.S. NRSROs provide credit ratings on corporate and bank debt issues. Only ratings of a NRSRO may be used for the regulatory purposes of rating. Includes Moody’s, S&P, Fitch, and Duff & Phelps among others. Principal describes the original cost of a security. It represents the amount of capital or money that the investor pays for the investment. Repurchase Agreements are short-term investment transactions. Banks buy temporarily idle funds from a customer by selling him U.S. Government or other securities with a contractual agreement to repurchase the same securities on a future date at an agreed upon interest rate. Repurchase Agreements are typically for one to ten days in maturity. The customer receives interest from the bank. The interest rate reflects both the prevailing demand for Federal Funds and the maturity of the Repo. Repurchase Agreements must be collateralized. Supranational entities are formed by two or more central governments with the purpose of promoting economic development for the member countries. Supranational institutions finance their activities by issuing debt, such as supranational bonds. Examples of supranational institutions include the European Investment Bank and the World Bank. Similarly, to the government bonds, the bonds issued by these institutions are considered direct obligations of the issuing nations and have a high credit rating. U.S. Treasury Issues are direct obligations of the United States Government. They are highly liquid and are considered the safest investment security. U.S. Treasury issues include: 1. Treasury Bills which are non-interest-bearing discount securities issued by the U.S. Treasury to finance the national debt. Bills are currently issued in one, three, six, and twelve-month maturities. 2. Treasury Notes that have original maturities of one to 10 years. 3. Treasury Bonds that have original maturities of greater than 10 years. Yield to Maturity is the rate of income return on an investment, minus any premium above par or plus any discount with the adjustment spread over the period from the date of the purchase to the date of maturity of the bond Item 4 Packet Page 44 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, UPDATING POSITION, PAYMENT DISBURSEMENT, AND RECEIPT AUTHORITY WHEREAS, Resolution No. 8477 (1996 Series) set forth position, payment disbursement and receipt authority; and WHEREAS, the designated positions adopted with said resolution no longer exist or have since changed the position title. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Finance Director of the City of San Luis Obispo is hereby appointed to concurrently hold the position of City Treasurer. SECTION 2. The Finance Director/City Treasurer is hereby authorized to sign all checks, drafts, wire transfers, and other orders for and on behalf of the City for deposits, payments, or investments in accordance with California Government Code Section 53601. SECTION 3. The Finance Director/City Treasurer is hereby authorized to designate the following positions with signature and representation authority to act on her/his behalf on the matters set forth above in Section 2 of this Resolution: City Manager, Assistant City Manager, Accounting Manager/Controller, and other officials formally designated by the Finance Director/City Treasurer to serve in her/his absence on a case-by-case basis. Item 4 Packet Page 45 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 4. Resolution No. 8477 (1996 Series) is hereby rescinded Upon motion of Council Member ___________________, seconded by Council Member __________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ____________________________________ Teresa Purrington City Clerk Item 4 Packet Page 46 © PFM 1 City of San Luis Obispo ESG Investment Solutions PFM Asset Management LLC 50 California Street Suite 2300 San Francisco, CA 94111 415.982.5544 pfm.com May 2020 Item 4 Packet Page 47 © PFM 2 Introduction to ESG Investing ESG Investment Criteria Options PFM’s Fixed Income ESG Investment Approach Measuring & Monitoring ESG Risk Exposure Agenda Item 4 Packet Page 48 © PFM 3 Introduction to ESG Investing Item 4 Packet Page 49 © PFM 4 What is ESG Investing? à ESG investing is a sustainable investment approach •More inclusive than SRI (exclusionary approach) •Broader in scope than thematic and impact investing à Incorporates measurable non-financial ESG factors into an investment analysis ENVIRONMENTAL How a company limits its environmental impact and carbon footprint SOCIAL How a company treats its employees, customers, community, and other companies with which it interacts GOVERNANCE How a company is led, including executive pay and any internal controls Climate Change Air Pollution Deforestation Water Pollution Data Protection Human Rights Gender & Diversity Community Relations Board Composition Bribery and Corruption Lobbying Executive Compensation Item 4 Packet Page 50 © PFM 5 ESG Investment Considerations Alignment of objectives with values Adoption of ESG initiatives allows investors to align investment objectives with values Public Scrutiny ESG investing is of particular concern for entities who control taxpayers’dollars, as they may be under public scrutiny if they invest in a highly controversial company Risk Management Rewarding ESG values may be seen as a way to help mitigate overall risk exposure Competitive Returns Good ESG quality has the potential to help a company to develop a competitive advantage, which can then drive outperformance Item 4 Packet Page 51 © PFM 6 ESG Investment Criteria Options Item 4 Packet Page 52 © PFM 7 Our Understanding of the City’s SRI & ESG Objectives à Investment Policy -Current investment restrictions: •Issuers that produce tobacco, electronic cigarette, or tobacco-related products •Issuers involved in the direct production or drilling of fossil fuels à Additional exclusions under consideration. Issuers directly involved in: •Weapons/guns manufacturing •Deforestation •Private Prisons à Ad ditional ESG Investment Objectives: •Gender equality (Social) •Clean energy (Environmental) •Water (Environmental) •Clean transportation (Environmental) •Organic Products (Environmental) Item 4 Packet Page 53 © PFM 8 ESG Investment Approach Summary Ap proach Exclusions / ESG Requirements Strategy Considerations Ap proach #1 Policy Restrictions Industry Exclusions –Energy Services, Oil & Gas Producers, Refiners & Pipelines Sub-Industry Exclusions –Tobacco •Fossil Fuel exclusion achieved by prohibiting investment in issuers that are involved in the exploration, direct production, refinement, and transportation of fossil fuels. •Exclude tobacco manufacturers to eliminate exposure to this sector. Ap proach #2 Policy Restrictions + Additional Issuer Exclusions Industry/Sub-Industry Exclusions –Energy Services, Oil &Gas Producers, Refiners & Pipelines, Tobacco Additional Industry Exclusions -Aerospace & Defense, Paper & Forestry •Several companies in the Aerospace & Defense industry are involved in the development of “controversial weapons” and small arms development. •Excluding the Paper & Forestry industry would reduce exposure to the use of forest resources for the production of paper, wood, and related products. Ap proach #3 Policy Restrictions + Additional Issuer Exclusions + Additional ESG Investment Objectives Industry/Sub-Industry Exclusions –Energy Services, Oil &Gas Producers, Refiners & Pipelines, Aerospace & Defense, Paper & Forestry, Tobacco •See above ESG Integration -ESG risk rating lower than 30 (medium or better risk category) Top ESG Performers –ESG risk rating lower than 40 and ESG risk rating scores in the top quartile (25%) of the issuer’s subindustry •Achieves broader ESG objectives. Provides rules-based, quantitative approach to identify issuers that maintain lower exposure to unmanaged material ESG risks. •Top ESG Performers exclusion rewards top performers in industries with higher ESG risk exposure. Item 4 Packet Page 54 © PFM 9 Impact Comparison on Different Approaches 124 124 105 95 100 105 110 115 120 125 130 Approach #1 Approach #2 Approach #3 Eligible Issuers (# of Issuers) 53 53 47 25 25 23 13 13 12 29 29 21 1 1 0 3 3 2 0 10 20 30 40 50 60 Approach #1 Approach #2 Approach #3 Credit Quality Comparison (# of Issuers) A rated AA rated ABCP ABS CP CD Item 4 Packet Page 55 © PFM 10 Reduction of Eligible Corporate Issuers (By Industry) Industries as defined by Sustainalytics. The chart only includes issuers in industries that are impacted by the application of the ESG investment criteria. 0 10 20 30 40 50 60 Utilities Transportation Telecommunication Services Technology Hardware Software & Services Semiconductors Retailing Pharmaceuticals Machinery Insurance Industrial Conglomerates Household Products Healthcare Food Retailers Food Products Diversified Financials Chemicals Banks Automobiles Change In The # Of Eligible Issuers Per Approach Approach #3 Approach #2 Approach #1 Item 4 Packet Page 56 © PFM 11 PFM’s Fixed Income ESG Investment Approach Item 4 Packet Page 57 © PFM 12 A C ustomizable & Flexible Ap proach Investment strategies Investment management Measurement & Reporting + Sustainalytics is a leading independent ESG and corporate governance research, ratings and analytics firm that supports investors around the world with the development and implementation of responsible investment strategies. For more information, visit www.sustainalytics.com. à PFM employs our proven investment process and leverages Sustainalytics’ESG data and analytics to implement and manage ESG fixed income investment solutions ESG Risk Ratings & Rankings Alerts (“Controversies”) Screening Tools Item 4 Packet Page 58 © PFM 13 PFM’s Fixed Income ESG Investment Solution Strategize Construct custom portfolios Establish duration targets Define ESG investment parameters Develop strategic asset allocation Implement & Manage Measure & Report Evaluate market conditions Implement strategy Actively manage and monitor Provide comprehensive reporting Measure quarterly performance Evaluate Determine objectives of each fund Analyze cash flow requirements Review IPS and bond resolutions Understand ESG investment objectives Select benchmarks Set ESG risk ratings Screening Identify approved issuers à Our approach provides our clients with the tools and methodology to implement a customized ESG fixed income investment solution for their Separately Managed Accounts 1st: State Law 2nd: Investment Policy / Indenture 3rd: PFM’s Approved Credit List 4th : ESG Investment Parameters Criteria Applied to Identify Permitted Investments Item 4 Packet Page 59 © PFM 14 Maximum ESG Risk Rating Level Our ESG Solution Offers Many Ad vantages Screening Preferences Negligible Severe Low Medium High No Screening Industry Screening Business Ac tivity Screening Company Specific Screening à Flexibility to implement customized ESG strategies (based on Sustainalytics framework) à Tr ansparent, practical, not overly complicated à “Rules-based” approach eliminates ambiguity by setting defined ESG parameters (based on Sustainalytics framework) Item 4 Packet Page 60 © PFM 15 Measuring & Monitoring ESG Risk Exposure Item 4 Packet Page 61 © PFM 16 Who is Sustainalytics & What is the ESG Risk Rating? à A f irm dedicated to independent ESG and corporate governance research, ratings, and analysis •Supports investors around the world with the development and implementation of responsible investment strategies, as it has done for over 25 years •Continuously conducts in-depth research and analysis on over 16,000 public and private companies à Sustainalytics’ ESG Risk Ratings enable investors to evaluate different organizations, using a consistent methodology, by quantitatively defining a company's material ESG exposure on a scale of 0-100 Lower scores = lower ESG risk Negligible Low Medium High Severe 0-9.99 10-19.99 20-29.99 30-39.99 40-100 ESG Risk Rating Scale Item 4 Packet Page 62 © PFM 17 How is ESG Risk Exposure Determined? à The ESG Risk Rating measures economic value at risk based on exposure to unmanaged ESG Risks à An organization’s ESG risk assessment is based on two primary factors: •ESG Risk Exposure –Determined at the subindustry level with adjustments for company-specific risk exposure levels •Management of ESG Risk Exposure –Based on policies, programs, quantitative performance, controversies, and corporate governance Source: Sustainalytics ESG Risk Rating = Unmanageable ESG Risk + Management Gap Unmanageable Industry-specific risks (carbon for oil companies) Manageable ESG Risk that is not being managed Item 4 Packet Page 63 © PFM 18 ESG Risk Rating Decomposition Source: Sustainalytics To tal Exposure Unmanageable Risk Manageable Risk Management Gap Managed Risk Managed Risk Unmanaged Risk ESG Risk Rating à To tal Exposure is the starting point for a company’s exposure to material ESG issues à Some companies have Unmanageable Risks, e.g. an oil company will always face risks related to carbon until it changes its business model à Of the , a portion is managed through a company’s policies, programs, management services, etc.; the remainder is considered unmanaged (Management Gap) à The ESG Risk Rating evaluates unmanaged ESG risk Item 4 Packet Page 64 © PFM 19 ESG Risk Rating Example Calculation –Ap ple Inc. Source: Sustainalytics. Last updated December 20, 2019. Illustration not drawn to scale. Manageable Risk 36.6 Management Gap 20.8 Managed Risk 15.8 Managed Risk 15.8 To tal Exposure 39.6 Unmanageable Risk 3.0 Total Possible Rating = 100ESG Risk Rating 23.8 Unmanaged Risk 23.8 Item 4 Packet Page 65 © PFM 20 ESG Risk Rating Decomposition Example Calculation –Ap ple Inc. Source: Sustainalytics. Last updated December 20, 2019. Illustration not drawn to scale. ESG Risk Rating 23.8 Governance 10.7 Social 11 .8 Environment 1.3 Material ESG Issue Scores ESG Breakdow n Data Privacy and Security 5.2 Human Rights -Supply Chain 1.1 Human Capital 5.3 Product Governance (S)0.2 Corporate Governance 3.6 Business Ethics 7.1 Carbon -Own Operations Product Governance (E) 0.5 0.8 Item 4 Packet Page 66 © PFM 21 Next Steps à Work with the City to determine its ESG investment objectives & parameters à Execute an amended investment advisory agreement à Identify ESG eligible permitted investments based on ESG investment parameters à Monitor the ESG risk ratings of the investments in the City’s portfolio à Review, discuss, and refine the investment approach as needed Item 4 Packet Page 67 © PFM 22 Disclosures This material is based on information obtained from sources generally believed to be reliable and available to the public, however PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation.All statements as to what will or may happen under certain circumstances are based on assumptions, some but not all of which are noted in the presentation. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in this presentation is not an offer to purchase or sell any securities. Sample portfolio is provided for illustrative purposes only and is not a recommendation. As economic and market conditions may change in the future, so may PFM’s recommendations as to the sale and purchase of securities in the portfolio. There is no guarantee the investment objectives will be achieved as the investment portfolio will only include holdings consistent with the applicable Environmental, Social, and Governance (ESG) guidelines. As a result, the universe of investments available will be more limited. ESG criteria risk is the risk that because the investment portfolio ESG criteria excludes securities of certain issuers for nonfinancial reasons, the investment portfolio may forgo some market opportunities that would be available to investment portfolios that do not apply ESG criteria. Item 4 Packet Page 68 Minutes - Draft Investment Oversight Committee Thursday, May 14, 2020 Regular Meeting of the Investment Oversight Committee CALL TO ORDER A Regular meeting of the Investment Oversight Committee was called to order on Thursday, May 14, 2020, at 1:30 p.m. via teleconference, by Chair Brigitte Elke. Due to Covid-19 “Shelter at Home” orders, the meeting was held via Webinar. ROLL CALL Present: Committee Members Heidi Harmon, Derek Johnson, Debbie Malicoat, and Chair Brigitte Elke Absent: Committee Member Daniel Humphrey (Public Member) Others Present: Monique Spyke, Managing Director for PFM Asset Management LLC, David Reeser Managing Director for PFM Asset Management LLC, Natalie Harnett, Staff, and Serenity Whorley, Recording Secretary PUBLIC COMMENT ITEMS NOT ON THE AGENDA None. --End of Public Comment-- APPROVAL OF MINUTES 1. Review of Minutes of the Investment Oversight Committee Meeting of February 13. 2020: ACTION: UPON MOTION BY COMMITTEE MEMBER JOHNSON, SECONDED BY COMMITTEE MEMBER MALICOAT, CARRIED 4-0-1 (Committee Member Humphrey absent), to approve the February 13, 2020 minutes, as presented. PUBLIC COMMENT None --End of Public Comment-- Item 4 Packet Page 69 City of San Luis Obispo, Title, Subtitle Minutes - Investment Oversight Committee Minutes of 14, May 2020 Page 2 BUSINESS ITEMS 2. Presentation of the Quarterly Investment Report on Portfolio Performance Monique Spyke, Managing Director for PFM Asset Management LLC, provided a PowerPoint presentation and responded to Committee inquiries. Public Comment None. --End of Public Comment-- ACTION: UPON MOTION BY COMMITTEE MEMBER MALICOAT, SECONDED BY COMMITTEE MEMBER HARMON, CARRIED 4-0-1 (Committee Member Humphrey absent), recommendation to approve and confirm investment policy compliance. 3. Presentation for ESG (Environmental, Social, and Governance) Investment Solutions Monique Spyke and David Reeser provided a PowerPoint presentation on ESG Investments and responded to Committee inquiries. Public Comment Kelsey Zazanis Jane Swanson --End of Public Comment-- ACTION: UPON MOTION BY COMMITTEE MEMBER JOHNSON, SECONDED BY COMMITTEE MEMBER HARMON, CARRIED 4-0-1 (Committee Member Humphrey absent), recommendation to approve the investment philosophy and make a recommendation to the City Council to adopt a policy for ESG investments. COMMENT AND DISCUSSION Finance Director Elke provided an agenda forecast. ADJOURNMENT The meeting was adjourned at 3:08 pm. The next Regular Meeting of the Investment Oversight Committee is scheduled for Thursday, August 1 3, 2020, at 1:30 p.m., in the Council Hearing Room, 990 Palm Street, San Luis Obispo, California. APPROVED BY INVESTMENT OVERSIGHT COMMITTEE: XX/XX/XXXX Item 4 Packet Page 70 Department Name: Public Works Cost Center: N/A For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Brian Nelson, Supervising Civil Engineer SUBJECT: 2020 STANDARD SPECIFICATIONS AND ENGINEERING STANDARDS UPDATE; STREET CLOSURES FOR SPECIAL EVENTS RECOMMENDATION 1. Adopt a Resolution approving the revised Standard Specifications and Engineering Standards for Construction (Attachment A); and 2. Authorize the City Engineer to release projects currently in design or approved by Council under the 2018 City Standard Specifications on a case by case basis; and 3. Adopt a Resolution authorizing the Public Works Director to approve temporary closures of City streets for special events, construction activities or other purposes (Attachment C). DISCUSSION Background The City Engineer is responsible for maintaining the Public Works Department’s Standard Specifications and Engineering Standards (hereafter collectively referred to as the “Standards”). The Standards set forth general guidelines and requirements for design and construction of City projects. In addition, they are also applicable to private development work within City right of way or on City property. The Standards set a level of quality and consistency for infrastructure construction and communicate an objective standard for public improvements. These Standards, when combined with active inspection, ensure the longevity and function of public improvements, and reduce long-term maintenance costs. In addition, the Standard Specifications provide contractual language to guide the relationship between contractors and the City during construction activities. In unique situations, licensed judgment by the City Engineer may be required on how to best apply intent of the Standards to ensure quality and consistency for public improvements. The City Standard Specifications work in conjunction with the State of California Department of Transportation Standard Specifications (the “State Book”). The City references the State Book, modified where appropriate, to satisfy City needs. The State Book covers many standard contract issues and legal requirements such as labor laws, bidding, payment, and liability. The City Standard Specifications also focus on construction guidelines for work the State does not typically handle such as water, wastewater, and park facilities. The Engineering Standards are pictorial construction drawings and details showing how facilities are put together. These are largely specific to City construction needs. Item 5 Packet Page 71 2020 Revisions The 2018 Standards continue to implement the 2015 State Book which are already familiar to local contractors. This 2020 update (Attachment B) involves minor changes and clarifications to a number of existing details, including clarification of the separation requirements for water and wastewater facilities to ensure water safety, improvements to construction details of banner arms on existing poles in the downtown, and enhancements to traffic control requirements for improved safety within construction zones. Further, new standards have been created for construction of 5G Small Cell Facilities, Green Bike Lanes, and Decorative Paver Crosswalks. The new details document City expectations for construction of improvements that will benefit community cohesiveness, ensure design development consistency, and reduce future City review times when related improvements are proposed. A handful of projects are substantially complete with design using the City’s 2018 Engineering Standards and Specifications. To minimize impacts to project delivery, staff anticipates releasing these contracts for construction under the 2018 standards on a case-by-case basis. Wherever possible, those projects that are substantially complete will be converted to the 2020 Standards. Street Closures for Special Events Occasionally, the City approves the temporary closure of public streets for construction activities and special events, such as the Thursday night Farmer’s Market, and more recently as part of the Open SLO program where downtown streets are closed to vehicle traffic temporarily to provide more pedestrian space for outdoor dining and social distancing. California Vehicle Code Section 21101 allows municipalities to adopt rules and regulations by ordinance or resolution to formally authorize the temporary closure of public streets for special events, celebrations, or other purposes when the closing is necessary for the safety and protection of the public. Per City Council Resolution No. 11118 (2020 Series), the City Manager or their designee has formal authority to approve temporary street closures during the one-year Open SLO pilot program; however, it appears that the City has not previously adopted a formal ordinance or resolution designating the authority to close public streets for temporary events beyond the one-year Open SLO program. To ensure consistency with the California Vehicle Code, a resolution has been prepared for Council consideration a Resolution (Attachment C) which formally delegates authority to the Public Works Director or their designee to approve temporary closure of public streets for special events, construction activities or other purposes where it is the opinion that closure of the street is necessary for the safety and protection of persons who use that street. Policy Context Related to the Standards Updates, the Public Works Capital Improvement Program updates the City Standards on a periodic basis to reflect changes in construction practices, provi de clarifications, and adopt new technologies. The City Engineer keeps suggested improvements on file and the Standards are revised during the next update. Item 5 Packet Page 72 As stated above regarding street closures, the California Vehicle Code Section 21101 allows municipalities to adopt rules and regulations by ordinance or resolution to formally authorize the temporary closure of public streets for special events, celebrations, or other purposes when the closing is necessary for the safety and protection of the public. Public Engagement Public Works staff work with local developers, engineers, and contractors to ensure compliance with the Standards. When deficiencies with the Standards are identified, Staff work with these external partners to make the necessary design or field adjustments. Where appropriate, Staff incorporate revisions and improvements into the next set of Standards. With the recommended action, the Standards update will incorporate these incremental improvements. CONCURRENCE The 2020 modifications to the Standards were submitted by the Public Works, Utilities, and Community Development Department staff. These departments concur that the proposed modifications are reasonable and appropriate. The City Engineer has approved all changes. Adoption of the resolution authorizing the Public Works Director or their designee to approve temporary street closures has the concurrence of the Community Development Department and the Administration Department. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. COVID-19 Considerations Due to the current economic impacts of COVID-19, the City reevaluated all Capital Improvement Plan projects with the goal of adjusting Capital Expenditures in response to projected revenue shortfalls, and aligning the adjusted CIP program with a focus on economic recovery and fiscal responsibility. As it relates to the CIP program, the Standards update is recommended to continue since current Standards are important for addressing critical and time dependent infrastructure projects which support economic recovery through contracts with local or regional companies and further retain employment and long-term viability of construction. FISCAL IMPACT Budgeted: No Budget Year: N/A Funding Identified: No Item 5 Packet Page 73 Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total $0 $0 $0 $0 The recommended Standards changes are either minor or will have an insignificant impact on the cost of City or private development projects. This is because most of the changes involve improvements to current construction standards or City infrastructure needs. The changes are not anticipated to result in significant cost impacts to construction or development. The recommended Standards update does not obligate funding and there are no direct Capital expenditures associated with the update. ALTERNATIVES This item can be referred to staff for further consideration and modification on specific items. Attachments: a - Draft Resolution - Approving revised Standard Specifications & Engineering Standards for Consruction b - COUNCIL READING FILE - 2020 Standard Specifications and Engineering Standards c - Draft Resolution - Authorize temporary street closures for special events, construction activities or other purposes Item 5 Packet Page 74 R _____ RESOLUTION NO. ______ (2020 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING REVISED STANDARD SPECIFICATIONS AND ENGINEERING STANDARDS FOR CONSTRUCTION WHEREAS, the Public Works Department is responsible for maintaining Standard Specifications and Engineering Standards establishing quality requirements and contract conditions for construction; and WHEREAS, the Standard Specifications and Engineering Standards must be periodically updated to allow for changes in construction practices and contract law; and WHEREAS, legally adopted Standard Specifications are necessary to provide "design and plan immunity" thereby protecting the City from possible liability. NOW, THEREFORE BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows: SECTION 1. Resolution No. 10889 (2018 Series) approving previous editions of the Standard Specifications and Engineering Standards is hereby superseded and the 2020 Standard Specifications and Engineering Specifications approved herein shall be applicable to all projects advertised and approved following the approval of these standards, except as expressly provided below. SECTION 2. 2020 Standard Specifications and Engineering Standards dated and effective August 31, 2020, are hereby approved. Item 5 Packet Page 75 Resolution No. ______ (2020 Series) Page 2 R _____ SECTION 3. The City Manager is authorized to release for advertising under the previous Standard Specifications, currently pending projects that are deemed by the City Engineer substantially complete with design at the time of this adoption. The Council expressly affirms its prior approval of the Standard Specifications approved by Resolution No. 10889 (2018) as applicable to those projects. Upon motion of Council Member ___________________, seconded by Council Member __________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of ___________ 2020. ______________________________ Mayor Heidi Harmon ATTEST: Teresa Purrington City Clerk APPROVED AS TO FORM: ___________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ________________________ Teresa Purrington City Clerk Item 5 Packet Page 76 R _____ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE PUBLIC WORKS DIRECTOR TO APPROVE TEMPORARY CLOSURES OF CITY STREETS FOR SPECIAL EVENTS, CONSTRUCTION ACTIVITIES OR OTHER PURPOSES WHEREAS, California Vehicle Code Sections 21101(e) allows municipalities to adopt rules and regulations by ordinance or resolution authorizing the closure any street temporarily for celebrations, special events, or other purposes when in the opinion of the local authorities having jurisdiction or a public officer or employee that the local authority designates by resolution, the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing; and WHEREAS, California Vehicle Code Sections 21101(f) allows municipalities to adopt rules and regulations by ordinance or resolution authorizing the closure of entry to, or exit from, or both, from any street by means of islands, curbs, traffic barriers, or other roadway design features to implement the circulation element of a general plan adopted pursuant to Article 6 (commencing with Section 65350) of Chapter 3 of Division 1 of Title 7 of the Government Code. The rules and regulations authorized by this subdivision shall be consistent with the responsibility of local government to provide for the health and safety of its citizens; and WHEREAS, City Council Resolution No. 11118 (2020 Series) currently authorizes the City Manager to implement strategies proposed as part of the Open SLO program, which includes authorization of temporary street closures to vehicle traffic during the one-year Open SLO pilot program; and WHEREAS, the City may choose to pursue additional temporary street closures beyond the one-year Open SLO pilot program for special events or construction activities were deemed necessary for the safety and protection of the public; and WHEREAS, a proper temporary traffic control and detour plan will be required to the satisfaction of the Public Works Director for any proposed street closures; and WHEREAS, the Department of Public Works, the Police Department, and Fire Department have no objections provided that emergency vehicle access will be available if needed during the temporary closure of the street. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Authorizes the Public Works Director or their designee(s), as defined in City of San Luis Obispo Municipal Code Section 10.08, to approve the temporary closure of public streets for special events, construction activities, or other purposes where it is the opinion of the Public Works Director or their designee(s) that closure of the street is necessary for the safety and protection of persons who use that portion of the street. Item 5 Packet Page 77 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 2. Notwithstanding any other City policy or procedure, the Public Works Director or their designee(s) shall be authorized to review and approve on behalf of the City any and all temporary traffic control, signage and public noticing plans associated with implementation any proposed temporary street closures. SECTION 3. Environmental Review. The potential temporary closure of public streets is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) as follows: The project is categorically exempt under State CEQA Guidelines Section 15301 (Existing Facilities) because the actions identified in the program are limited to the permitting, leasing, and minor alteration of existing public facilities, including existing str eets, sidewalks, bicycle and pedestrian trails, which would not result in the creation of additional automobile lanes. The program would result in a negligible expansion of existing commercial uses and a negligible expansion of the public’s use of City right-of-way, as the uses included in the temporary program would not vary from the current uses of commercial businesses, residential areas, or public access within the City’s right -of-way. Upon motion of Council Member _________________, seconded by Council Member ___________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ____________________________________ Teresa Purrington, City Clerk Item 5 Packet Page 78 Department Name: Public Works Cost Center: N/A For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Shelsie Kloepper, Engineer III SUBJECT: APPROVE THE ACQUISITION OF PROPERTY ADJACENT TO LOS OSOS VALLEY ROAD FROM THE CALIFORNIA DEPARTMENT OF TRANSPORTATION TO THE CITY OF SAN LUIS OBISPO RECOMMENDATION As recommended by the Planning Commission, adopt a Resolution (Attachment A) to approve the acquisition of property adjacent to Los Osos Valley Road from the California Department of Transportation (Caltrans) to the City of San Luis Obispo (City) based on the determination of General Plan conformance with an exemption from environmental review. DISCUSSION Background The LOVR interchange project was a joint project between the City and Caltrans. Caltrans retained ownership of the right-of-way within the on and off ramps to Highway 101. There is one portion of Caltrans right-of-way that no longer is a part of the interchange infrastructure and is better suited for the City to own and maintain due to its location adjacent to City right -of-way and intersection with a local access road (Attachment B). In 2004, the City requested relinquishment of this section of Caltrans right -of-way (Attachment C), but the relinquishment was never completed. The request was due to the relocation of the southbound on-ramp outside of the property in question. Additionally, since the original request, Calle Joaquin Road was realigned and placed across the existing Caltrans right-of-way. Since local roads are not allowed to cross freeway right-of-way, it is crucial for the City to acquire this property in order to keep access to the west end of Calle Joaquin Road. The property in question was surveyed by Caltrans in 2019 (Attachment D) and will provide the City right-of-way for Calle Joaquin and all associated turn lanes. The right-of-way will transition from City to Caltrans at approximately the half-way point in the south bound on-ramp turn lane. This relinquishment will create a new Caltrans right-of-way limit that is consistent with the opposite side of the Los Osos Valley Road. Item 6 Packet Page 79 Project Information The property in question is Caltrans right-of-way that was not needed for the Los Osos Valley Road and Highway 101 Interchange project completed in 2014. The proposed acquisition consists of approximately 24,120 square feet of land. The property currently contains City maintained landscaping, creek corridor, frontage improvements including curb, gutter, and sidewalk, as well as a portion of Calle Joaquin Road and associate turn lanes. The property has no apparent indications of hazardous waste as identified in the hazardous waste summary done by Caltrans dated March 11, 2020, included in Attachment A. The City is proposing to acquire this property from Caltrans in its current conditions for existing infrastructure in City right-of- way. The property in question is located within the City limits and will remain within the City limit line. No additional changes to the infrastructure are proposed with this acquisition. Public Engagement The public was provided an opportunity to comment when this item was reviewed by the Planning Commission. No comments were received. Previous Council or Advisory Body Action On June 24, 2020, the Planning Commission made a General Plan Conformity finding regarding the acquisition of the property to be used as City right-of-way. The Planning Commission Resolution is included as Attachment E. Policy Context Staff finds the acquisition of the right-of-way by the City to be in conformance with the General Plan. The proposed right-of-way will fulfill the City’s Land Use and Circulation Element policies for enhancing neighborhood connections, cohesiveness, and improve traffic circulations by connecting Calle Joaquin Road with the intersection of Los Osos Valley Road. Item 6 Packet Page 80 COVID-19 Considerations Due to the ongoing economic impacts of COVID-19, the City reevaluated all Capital Improvement Plan projects with the goal of adjusting Capital Expenditures in response to projected revenue shortfalls, and aligning the adjusted CIP program with a focus on economic recovery and fiscal responsibility. Because the recommended action does not constitute project and does not obligated City funds, it is recommended to continue. CONCURRENCE Concurrence was provided from the Community Development Department Planning Division as well as the Public Works Transportation Division. ENVIRONMENTAL REVIEW Section 15061(b)(3) states a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The determination of General Plan conformity for the acquisition of land for City right-of-way is not subject to CEQA because the project will not have a significant effect on the environment since it is a policy review of whether land acquisition is consistent with the General Plan. Any future development related to the proposed right-of-way will be subject to environmental review as required under CEQA. FISCAL IMPACT Budgeted: No Budget Year: N/A Funding Identified: No Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A N/A N/A State Federal Fees Other: Total No funding is required for the acquisition of this property from Caltrans. Item 6 Packet Page 81 ALTERNATIVES 1. Continue the item. An action to continue the item should include a detailed list of additional information or analysis required to make a decision concerning the property acquisition. 2. Deny approval of the property acquisition. Council may choose to deny approval of the property acquisition from Caltrans. This alternative is not recommended as this property is essential to maintaining access to the west end of Calle Joaquin Road. Attachments: a - Draft Resolution a - Exhibit A to Resolution - Letter of Acceptance b - COUNCIL READING FILE - Property Location Exhibit c - Request Letter from City of San Luis Obispo dated 06/10/2004 d - Property Acquisition Survey e - Planning Commission Resolution No. PC-1012-20 Item 6 Packet Page 82 R _______ RESOLUTION NO. ________ (2020 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, TO APPROVE THE ACQUISITION OF PROPERTY ADJACENT TO LOS OSOS VALLEY ROAD FROM THE CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) TO THE CITY OF SAN LUIS OBISPO (CITY) BASED ON THE DETERMINATION OF GENERAL PLAN CONFORMANCE WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW, AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED AUGUST 18, 2020 (GENP-0251-2020) WHEREAS, The City has received a request from the California Department of Transportation for the City to acquire the property adjacent to Los Osos Valley Road; and WHEREAS, the City of San Luis Obispo Planning Commission conducted a public hearing on June 24, 2020, to consider whether the property conforms to applicable goals and policies of the City’s General Plan, and found that the proposed acquisition is consistent with the City’s General Plan. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows: SECTION 1. The above recitals are true and correct and incorporated herein by this reference. SECTION 2. Environmental Review. Section 15061(b)(3) states a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environmental. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The determination of general plan conformity for the acquisition of land for right-of-way by the City of San Luis Obispo is not subject to CEQA because the project will not have a significant effect on the environment since it is a policy review of whether acquiring land is consistent with the General Plan. Any future development related to the proposed right-of-way will be subject to environmental review as required under CEQA. Item 6 Packet Page 83 Resolution No. ______ (2020 Series) Page 2 R _______ SECTION 3. The City Council hereby approves the acquisition and authorizes the Mayor to sign the acceptance letter attached hereto as Exhibit “A”. Upon motion of Council Member _________________, seconded by Council Member ________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: Teresa Purrington City Clerk APPROVED: J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ___________________. ____________________________________ Teresa Purrington City Clerk Item 6 Packet Page 84 “Provide a safe, sustainable, integrated and efficient transportation system to enhance California’s economy and livability” STATE OF CALIFORNIA 05-SLO-101-PM 25.9 DEPARTMENT OF TRANSPORTATION Relinquishment No. 11578 50 HIGUERA STREET SAN LUIS OBISPO, CA 93401-5415 PHONE (805) 549-3111 www.dot.ca.gov ATTN: Paul Valadao The City of San Luis Obispo has reviewed your offer to accept that portion of State Right of Way to be relinquished as per letter dated March 11, 2020 and the maps. - Yes, we are willing to accept the Relinquishment in its current environmental condition and setting, including, but not limited to, the presence of hazardous materials as described in the described in the attached “Hazardous Waste Summary” dated May 21, 2019. The City of San Luis Obispo has received and reviewed a copy of the above-referenced “Hazardous Waste Summary” dated March 11, 2020. Upon recordation of the CTC’s Resolution of Relinquishment in the County Recorder’s Office, CALTRANS will not be responsible for any present or future remediation of said hazardous materials. Please proceed with preparing the final submittal. - No, we are not interested in accepting the Relinquishment. - Yes, we agree to waive the ninety (90) days’ notice of “Intention to Relinquish” requirement contained in Section 73 of the Streets and Highways Code. - No, we do not agree to waive the ninety (90) days’ notice of “Intention to Relinquish” requirement contained in Section 73 of the Streets and Highway Code. As the _____________________________ for the City of San Luis Obispo and having the authority to act on behalf of the City Council, I attest to the above checked items. BY: _______________________________ TITLE: _______________________________ DATE: _______________________________ Exhibit A Item 6 Packet Page 85 Item 6Packet Page 86 Item 6Packet Page 87 Item 6 Packet Page 88 STATE OF CALIFORNIA CALIFORNIA STATE TRANSPORTATION AGENCY DISTRICT COUNTY ROUTE SHEET NO.TOTAL SHEETS 05 SLO 101 1 1 NOTES LEGEND DATEREVISIONSBYR/W PROJECT SURVEYOR: - - - - - - - - - - RIGHT OF WAY SHEET PM 25.9 (R) RELINQUISHMENT MAP of digital images of this map. shall not be responsible for the accuracy or completeness NOTE: The State of California or its officers or agents Access Superseded Access Prohibited monument set) point. (Does not imply Indicates calculated as noted Indicates Found Monument Indicates Radial Bearing Access Opening (Private) Existing R/W Superseded Portion to be relinquished Access Relinquished PROJECT ID: DEPARTMENT OF TRANSPORTATION CALIFORNIA STATE TRANSPORTATION AGENCY STATE OF CALIFORNIA DEL NORTE SISKIYOU MODOC HUMBOLDT TRINITY SHASTA LASSEN TEHAMA MENDOCINO GLENN BUTTE PLUMAS SIERRA NEVADA PLACERYUBACOLUSA LAKE YOLO NAPASONOMA EL DORADO MARIN AMADOR ALPINECALAVERASCONTRA COSTA TUOLUMNE MONO SANTA CLARA SANTA CRUZ STANISLAUS MARIPOSA MERCED MADERA FRESNO MONTEREY INYO TULARE KINGS OBISPO KERN SANTA BARBARA VENTURA LOS ANGELES SAN BERNARDINO RIVERSIDE IMPERIALSAN DIEGO ORANGE SOLANO ALAMEDA MENTOSACRA-JOAQU INSAN SAN BENITO SAN LUISSUTTERSAN FRANCISCO SAN MATEO LOCATION MAP FEET 0 25 50 100 150 PROFESSIONAL LAND SURVEYOR LS7674 Joseph L Bloom resolution. California Transportation Commission until recordation of related The State's rights are not extinguished State Highway Map Book 2 page 316 filed in San luis Obispo County according to the map 5-23A and 5-25; N 26^12'30" E, betweeen center line monuments center line bearing of US Route101 The basis of bearings for this map is the CITY OF SAN LUIS OBISPO Dec.31, 2020 L OS OSOSVALLEYROADCALLEJOAQUIN C ALL E JOAQUIN AUTOPARKWAYLOSOSOSROAD VALLEYTO LOS OSOSBridge No. 49-0185L Los Osos Valley Road Overcrossing CITY LIMIT CITY LIMITCreek Obispo Luis San Prefumo Creek REQUEST NO. 11787 RELINQUISHMENT TO DESIGN: EA(s): FA#:0H7300 05 0000 0082 CITY OF SAN LUIS OBISPO OF US ROUTE 101 IN THE RELINQUISHMENT OF A PORTION N26^12'30"E (R) Stamped "5-23A" Brass Disk in Concrete Station 663+79.22 Centerline Monument Stamped "5-25" Brass Disk in Concrete Station 683+99.90 Centerline Monument SEGMENT ONECITY LIMITCI TY LI MI T101 US 670 675 680 685 CITY OF SAN LUIS OBISPO TO SAN LUIS OBISPO TO SANTA MARIA 101US SEGMENT ONE DETAIL SEE DETAIL FEET 0 25 50 100 150 U.S. ROUTE 101 CENTER LINE 672+00 673+00 674+00 675+00 676+00 677+00 2020.68' (R) 671+38 488.26' Lt. SEGMENT ONE 671+38488.26'L OS OS OS VALLEY R OAD State Highway Map Book 2 page 316 R = San Luis Obispo County N0^57'52"E 177.34' '72.861 =L '006 =R "80'40^61 = N15^06'16"W 161.61' 563.90' Lt. 655.92' Lt. 672+98.41 674+38.62 762.60' Lt. 675+60 S23^41'30"E 50.00' 336.81' Lt. 673+32.95 1228 OR 707 Record e d 3 /6 /1963 P a r. 3 Re linqu ish me n t 1050 S 23^41'30"E 421.96' 10 0.59'N66^18'30"E 673+65.16 375.05' Lt. 672+14.88 672+61.44 462.39' Lt. 424.55' Lt. 673+48.36 533' Lt. N66^18'30"E 10 0.59' S 23^41'30"E 421.96' 50' 35'N65^51'22"E 99.84' N12^53'00"W 60' N12^53'00"W 112' 10/19/19 October 19, 2019 Nove mber 1967 14 5 7 OR 27 3 Cou nty to State Parcel 17 5 2 P.O.B.N63^47'30"WItem 6 Packet Page 89 Item 6 Packet Page 90 Item 6 Packet Page 91 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 6 Packet Page 92 Department Name: Public Works Cost Center: 5201 For Agenda of: July 21, 2020 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Gamaliel Anguiano, Transit Manager SUBJECT: 2019-20 PAYMENT REDUCTION AND APPROVAL OF A TRANSIT AGREEMENT EXTENSION BETWEEN THE CITY OF SAN LUIS OBISPO AND CAL POLY RECOMMENDATION 1. In response to changes in service usage under the terms of the 2019-20 Transit Agreement due to impacts of COVID-19 approve a reduction to Cal Poly’s payment for the 4th Quarter by $99,964; and 2. Approve a Resolution (Attachment B) authorizing the City Manager to execute an Extension of the existing Transit Agreement between the City and Cal Poly for 2020-21. DISCUSSION Background Since 1985, California State Polytechnic University (Cal Poly) and the City of San Luis Obispo have maintained a Transit Service Agreement (TSA) to allow Cal Poly to access the City’s transit services (SLO Transit). Through this Agreement, Cal Poly has paid an annual service fee to the City in exchange for a zero-fare program that allows students, staff, and faculty to ride SLO Transit at no charge to the rider. A valid Cal Poly Identification Card must be presented to participate in a zero-fare ride. The Agreement encourages students, faculty, and staff to make use of alternative transportation as a means of travel. Cal Poly trips represent approximately 65% of the annual trips on SLO Transit. Historically, the University has compensated the City for a portion of the costs for these trips from its Parking & Forfeitures Fund and with no direct contribution from students, staff, and faculty. Agreement Extension is Needed and Recommended The current Agreement, first entered into in 2011, has been extended twice. The term of the Agreement expired on June 30, 2020. The City and Cal Poly have been working to complete a new Agreement. Extensions were made to the existing Agreement initially because of complexities regarding costs of a new Transit Operations & Maintenance Contract (in 2016) and the implementation of the Short Range Transit Plan (2017) alongside anticipated changes to ridership levels (2018, 2019). Item 7 Packet Page 93 Today the ongoing impacts of COVID-19 (2020), requires another year extension and flexibility as outlined in Attachment A. Negotiating a new agreement with so much uncertainty about the duration of the pandemic, lingering real and perceived health risk, and future renegotiation of our contract transit service agreement are primary factors for renewing existing terms. Operational Changes Due to COVID-19 COVID-19 has required both Cal Poly and SLO Transit to significantly modify operational models. As of the writing of this staff report, for the 2020-21 Academic Year, Cal Poly anticipates on-campus housing to be limited to 5,000 to 7,000 students and the final amount will be guided by California Public Health guidance and consultation with County Public Health . In previous years, Cal Poly has not allowed first-year students to park on Cal Poly’s campus, but this restriction will be lifted allowing more students to bring their personal vehicles to campus. The efficacy of such restrictions have been questioned and while not validated, reports are that many first year students store their vehicles in the City in locations not covered by residential parking districts. As many as 85% of the classes are expected to be virtual while only 15% of classes will be held in person with reduced class sizes. Cal Poly faculty and staff will work remote when possible. The Campus Library, Recreation Center, and ASI events are expected to remain closed until Stage 3 Reopening plans are implemented. SLO Transit operations have been considerably impacted by the pandemic. SLO Transit ridership has declined approximately 80% compared to prior year s. In response, SLO Transit has implemented “Weekend Service” schedules. Passenger capacity is limited to 15 riders per bus to promote physical distancing and a secondary “Chase Bus” is dispatched when maximum capacity is reached. Systemwide cleaning and sanitization procedures have been expanded and personal protective equipment for drivers and staff has been procured. For the 2020-21 Academic Year, SLO Transit ridership levels are anticipated to remain low, but an increased service level is required. Increasing the service level to “Summer Service” schedules is necessary to allow for physical distancing. Regardless of service level, the City is committed to providing enhanced cleaning and sanitization measures to provide for community safety while using SLO Transit. Reduction in 4th Quarter Payment 2019-20 Given the reduction in ridership which arose as a result of stay at home orders and all of Cal Poly being virtual for Spring Quarter 2020 ridership plummeted. So to o did Cal Poly’s revenue source to fund its usage of SLO Transit. Per the University’s request, Staff is recommending a 75% reduction to the University’s 4th Quarter Payment from $133,285 to $33,321 (a reduction of $99,964). This is possible for the Transit Fund as the infusion of CARES Act funds makes Transit whole for any losses in revenues as a result of the pandemic. Item 7 Packet Page 94 Conceptual Terms for Agreement Extension Given the operational uncertainty (and guesses at student, staff, and facility ridership), the terms of this extension are generally outlined in Attachment A. The basic approach is to provide flexibility and base payment on ridership numbers (usage) from July 2020 through June 2021. Public Engagement No public engagement is necessary as this is considered to be an administrative item. CONCURRENCE Cal Poly Administration has agreed to the terms and amounts included in the FY 2020 -21 extension agreement. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: FY 2020/21 Funding Identified: N/A Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost Transit Fund N/A N/A State N/A Federal N/A Fees N/A Other: Total During the 2019-20 Financial Plan process, the Transit Fund assumed that a new long-term agreement with Cal Poly would have been achieved for future years. Given continued uncertainty in Transit use by Cal Poly this one-year extension reflects a tiered contribution approach whereby Cal Poly funds service based upon usage. Item 7 Packet Page 95 Proposed Fee Schedule: Ride Range (Cumulative Annual Trips) Fare Maximum Fee for Tier of Service Cumulative Fee Up To 100,000 Flat Fee (1st quarter payment) $150,000 $150,000 100,001 To 200,000 $1.25 per ride $125,000 $275,000 200,001 To 400,000 $0.75 per ride $150,000 $425,000 400,001 To 600,000 $0.50 per ride $100,000 $525,000 600,001 To Unlimited $0.25 per ride *Note: FY 19/20 CP annual ridership was 639,685 trips A flat fee of $150,000 is required at the beginning of the 1st Quarter of FY 2020-21. Subsequent payments will be due quarterly based on ridership. Ridership will be monitored via transit vehicle Farebox system. City will provide ridership numbers multiplied by applicable per ride cost based on the table above. The costs include a prorated share for basic service as well as cost of use. This approach provides an equitable solution for both organizations, as again, the infusion of CARES Act funds are anticipated to make the Transit Fund whole for any losses in revenue. There is no impact on the General Fund by approving the recommended action however this subsidy amount represents a significant portion of the locally generated funds for the Transit Enterprise Program. ALTERNATIVES 1. Deny/Defer FY 2020/21 Transit Agreement Extension. City Council may choose to deny or defer the University Transit Subsidy Agreement. Staff does not recommend this alternative as the impact of this alternative would significantly reduce ridership and revenues. As previously mentioned, both the City and Cal Poly agree to the terms of the new subsidy agreement. The continuation of the program helps foster the continued partnership of this mutually beneficial program. 2. Direct Staff to alter the fee schedule to some other level. Staff does not recommend this alternative as both the City and Cal Poly agree to the terms of the new subsidy agreement. The continuation of the program helps foster the continued partnership of this mutually beneficial program. Attachments: a - University Transit Agreement - 3rd Extension b - Draft Resolution c - Cal Poly 2011-16 Transit Agreement & Extentions Compiled d - Cal Poly Contract Tracking History Item 7 Packet Page 96 Item 7 Packet Page 97 Item 7 Packet Page 98 R ______ RESOLUTION NO. ____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN EXTENSION OF THE 2011-2016 TRANSIT SUBSIDY AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND CAL POLY WHEREAS, the City of San Luis Obispo (referred hereinafter as the City) operates SLO Transit, a municipal public transit system; and WHEREAS, California Polytechnic University (referred hereinafter as the Cal Poly) is situated in an unincorporated area of San Luis Obispo County (hereinafter referred to as the County), immediately adjacent to the City, within the jurisdiction and service area of the County; and WHEREAS, since 1985, the City has received a subsidy from Cal Poly in accordance with a written transit subsidy agreement to allow Cal Poly students, staff, and faculty with valid Cal Poly identification to board any bus operated by SLO Transit without paying a fare; and WHEREAS, the parties most recently entered into a long-term transit subsidy agreement with a 2011-2016 term (hereinafter referred to as the 2011-2016 Subsidy Transit Agreement), which has been extended by the parties three (3) times; and WHEREAS, the third extension to the 2011-2016 Transit Subsidy Agreement expired on June 30, 2020; and WHEREAS, the parties have attempted to negotiate and finalize a new long-term transit subsidy agreement, but those efforts have been delayed due to unforeseen circumstances and complexities including changes to ridership levels and the impacts of COVID-19; and WHEREAS, the parties agree that executing an additional one (1) year extension to the 2011-2016 Transit Subsidy Agreement, including all of its terms and conditions, serves the best interest of the parties, namely providing Cal Poly students, staff, and faculty continued subsidized access to SLO Transit while the parties negotiate and finalize a new long-term transit subsidy agreement; and WHEREAS, the City and Cal Poly desire to continue the program and have jointly developed a mutually acceptable solution. Item 7 Packet Page 99 Resolution No. _______ (2020 Series) Page 2 R ______ NOW THEREFORE, BE IT RESOLVED that the City Manager is authorized to execute the one (1) year extension to the parties’ 2011-2016 Transit Subsidy Agreement and approve any amendments during the term of the extended 2011-2016 Transit Subsidy Agreement. Upon motion of Council Member ________________, seconded by Council Member ____________________and on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ______________________________ Teresa Purrington City Clerk Item 7 Packet Page 100 Item 7 Packet Page 101 Item 7 Packet Page 102 Item 7 Packet Page 103 Item 7 Packet Page 104 Item 7 Packet Page 105 Item 7 Packet Page 106 RESOLUTION NO. 10300 (2011 Series) RESOLUTION OF THE CITY OF SAN LUIS OBISP O AUTHORIZING THE EXECUTION OF THE SERVICE AGREEMENT BETWEE N THE CITY OF SAN LUIS OBISPO AND CAL POL Y WHEREAS,the City of San Luis Obispo (referred hereinafter as the City) operates SL O Transit ; WHEREAS,the a public transit service receives a subsidy from the Californi a Polytechnic State University, San Luis Obispo (referred hereinafter as Cal Poly) in accordance t o the service agreement executed on July 1, 2006 ; WHEREAS,the City allows Cal Poly students, staff, and faculty with valid Cal Pol y identification to board any bus operated by SLO Transit without paying a fare ; WHEREAS,the 2006 service agreement expired on June 30, 2011 ; an d WHEREAS,the existing scope extended the 2006 subsidy on a month to month basis t o allow the City and Cal Poly to final the new service agreement ; an d WHEREAS,the City and Cal Poly desire to continue the program and have jointl y developed a mutually acceptable solution . NOW THEREFORE, BE IT RESOLVED that the City Manager is authorized t o execute the Agreement between the City and Cal Poly for the Cal Poly Subsidy Program, an d approve any amendments during the term of the agreement . Upon motion of Council Member Carter, seconded by Council Member Smith and on th e following vote : AYES : Council Members Carpenter, Carter and Smith, Vice Mayor Ashbaugh an d Mayor Marx NOES : None ABSENT : None R 10300 Item 7 Packet Page 107 Resolution No . 10300 (2011 Series ) Page 2 The foregoing resolution was adopted this 20 th day of September, 2011 . ATTEST : Elaina Can o City Clerk APPROVED AS TO FORM : J . Christine Die rick City Attorney Item 7 Packet Page 108 Item 7 Packet Page 109 Item 7 Packet Page 110 Item 7 Packet Page 111 FY Subsidy Change CP Ridership Change Cost Per Ride 1985‐86 69,124$           1986‐87 67,063$           ‐3.07% 1987‐88 69,124$           2.98% 1988‐89 74,086$           6.70% 1989‐90 88,791$           16.56% 286,400       0.31$               1990‐91 98,825$           10.15% 308,800       7% 0.32$               1991‐92 135,132$         26.87% 409,500       25% 0.33$               1992‐93 177,010$         23.66% 250,600       ‐63% 0.71$               1993‐94 246,250$         28.12% 583,300       57% 0.42$               1994‐95 246,000$         ‐0.10% 531,700       ‐10% 0.46$               1995‐96 229,424$         ‐7.23% 614,800       14% 0.37$               1996‐97 169,000$         ‐35.75% 615,000       0% 0.27$               1997‐98 169,000$         0.00% 480,685       ‐28% 0.35$               1998‐99 174,600$         3.21% 544,938       12% 0.32$               1999‐00 182,100$         4.12% 671,949       19% 0.27$               2000‐01 187,900$         3.09% 561,745       ‐20% 0.33$               2001‐02 239,536$         21.56% 356,528       ‐58% 0.67$               2002‐03 246,722$         2.91% 316,325       ‐13% 0.78$               2003‐04 254,124$         2.91% 333,232       5% 0.76$               2004‐05 261,748$         2.91% 470,963       29% 0.56$               2005‐06 269,600$         2.91% 505,596       7% 0.53$               2006‐07 322,000$         16.27% 544,130       7% 0.59$               2007‐08 322,000$         0.00% 475,947       ‐14% 0.68$               2008‐09 331,660$         2.91% 518,870       8% 0.64$               2009‐10 341,610$         2.91% 630,304       18% 0.54$               2010‐11 351,858$         2.91% 664,194       5% 0.53$               2011‐12 380,000$         7.41% 664,197       0% 0.57$               2012‐13 395,200$         3.85% 689,784       4%0.57$               2013‐14 403,104$         1.96% 665,469       ‐4% 0.61$               2014‐15 415,197$         2.91% 632,473       ‐5% 0.66$               2015‐16 427,653$         2.91% 640,768       1% 0.67$               2016‐17 439,810$         2.76% 759,866       16% 0.58$               2017‐18 453,697$         3.06% 734,553       ‐3% 0.62$               2018‐19 517,611$         12.35% 588,217       ‐25% 0.88$               2019‐20* 433,172$         ‐19.49% 639,685       8% 0.68$               University  Transit Agreement Throughout the Years * As a direct result of COIVD related CalPoly suspension of on‐campus classes  and corresponding transit service reductions, the 4th quarter payment for 2019‐ 20 was reduced by $99,963.75 Item 7 Packet Page 112 Department Name: Public Works Cost Center: 5101 For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Gaven Hussey, Parking Services Manager SUBJECT: PURCHASE OF MULTI-SPACE PAY STATIONS FOR ON-STREET PARKING MANAGEMENT RECOMMENDATION 1. Adopt a Resolution (Attachment A) authorizing the City Manager to execute a sole source contract with IPS Group for purchase and installation of Multi-Space Pay Stations in an amount not to exceed the available project budget; and 2. Authorize the City Manager to execute a separate sole source contract with IPS Group for the operation and maintenance of the Multi-Space Pay Stations. DISCUSSION Background In January 2012, the City entered into an agreement with IPS Group, Incorporated (IPS) to purchase and service 400 single-space credit card capable parking meters. In March 2012, the 400-credit card capable meters were installed in various surface parking lots as well as on-street locations throughout the downtown area. Within a year of implementation, credit card transactions accounted for 38% of revenue collected from the 400 meters and generated more than 28% increase in net revenue over staff’s original revenue projection prior to implementation. As of 2019, credit card transactions accounted for 57% of the total revenue collected from the credit card capable meters with almost 32,000 credit card transactions per month. Now, over eight years later since implementation, most of the credit card capable meters purchased in 2012 are still in operation but they continue to require more maintenance and support as they age out. According to IPS, the average lifespan of the credit card capable meters used by the City is five years before major components begin to fail. Staff has experienced failures and is now having to rebuild some of the meters out of spare parts to keep them operational (which is not recommended by the manufacturer). However, the most pressing issue with the current parking meters is that they use AT&T’s 3G cell network to communicate wirelessly for the transfer of data. In 2018, AT&T announced that they will begin phasing out all 3G network equipment and support. Loss of communication via 3G cell network will mean that credit card transactions can no longer take place, resulting in loss of revenue and data collected (maintenance activity, battery health, failed components, etc.) by the meters to the City. Item 8 Packet Page 113 Parkers would still be able to pay with coin at the meters but would impact credit card payment adoption and be confusing for users since the meter would still appear as though it accepted credit cards. IPS indicates that 3G will be supported through the end of 2020, possibly extending into early 2021, but loss in communication amongst the current parking meters is already occurring in various locations downtown. Upgrade / Replacement Plans Pre- and Post-COVID In response to the anticipated loss of support for AT&T’s 3G cell network and the impacts it would have on the City’s credit card capable meters, Parking Services, as part of the 2019-21 Financial Plan, requested and was approved to invest $257,500 in both FY 2019-20 and FY 2020-21 (total of $515,000) to replace and upgrade the City’s existing credit card capable meters with a newer single-space meter model that uses 4G cell network for communication. Parking Services has tested two different single-space models that use 4G cell networks for communication and both models have operated with minimal issues for over a year. But, before the funds could be invested in new single-space meters, the COVID-19 pandemic and resulting shutdown, required Parking Services to reevaluate its operations and services. This reevaluation led to Parking Service’s decision to pursue multi-space pay stations for on-street physical payments instead of the more traditional single-space meters currently used by the City. On June 20, 2020, as part of the 2021 Supplemental budget, Council approved the reallocation of the previously approved parking meter upgrade / replacement funds to be used for multi-space pay stations. Multi-Space Pay Stations Integration into “Complete” Modern Parking Payment System As Council is aware, Parking Services is focused on upgrading its infrastructure to make the user experience as friendly and safe as possible. Multi-space pay stations receive payments for multiple parking spaces via a single piece of equipment rather than an individual meter for each space. This limits the amount of equipment that needs to be maintained and, in the case of COVID-19, the amount needed to be disinfected by City staff. Parking Services is also pursuing pay-by-phone technology that will further limit the need for customers to physically touch and use public parking equipment to pay for their parking sessions. Pay-by-phone technology will integrate seamlessly with IPS’s pay stations as well as the City’s current license plate recognition (LPR) enforcement technology. With this “Complete” modern parking payment system, the pay stations and future pay-by-phone technology both allow the City to publish occupancy data to a website or mobile application that provides customers with real-time information on parking availability. This in turn will reduce vehicle time while searching for parking spaces. Why Sole Source the Purchase? Pursuant to the City’s Municipal Code Section 3.24.060(D), certain acquisitions in which the equipment or services have been uniformly adopted in the City or otherwise standardized may be obtained from a single source without engaging in bidding procedures. While there are multiple vendors that manufacture multi-space pay stations, they will not fully integrate with IPS’s back- end management system (which the City presently uses) because they are different platforms that are only designed to manage equipment from one manufacturer. Item 8 Packet Page 114 A back-end management system is a web-based application that allows staff to monitor usage and maintenance needs for multiple pieces of equipment remotely from an office environment. Maintaining single-space meters as well as new multi-space pay stations through one integrated back-end management system will allow staff to easily monitor the equipment for issues, report on revenue, and adjust pricing as needed. Utilizing one back-end system also reduces the cost of integration fees that vendors charge the City which allows equipment and software from different manufacturers to communicate with one another. The City’s Information and Technology Department has reviewed this project and is supportive of the recom mendation because communication and credit card processing at the pay stations will follow the same processes currently used by the credit card capable meters. Attachment A is a resolution authorizing the City Manager, or his designee, to execute a sole source contract IPS for the purchase of multi-space pay stations as well as a sole source contract with IPS for the operation and maintenance of the multi-space pay stations the City will purchase. IPS also has a proven track record of integrating with the City’s LPR technology vendor (Genetec, Inc.) as well as most of the major pay-by-phone vendors that the City may contract with in the future. Implementation, a Phased Approach Staff plans to replace a majority of the credit card capable meters in the downtown area with multi-space pay stations through this initial purchase agreement with IPS. The new pay stations will replace approximately 325 credit card capable single-space meters and 77 coin only single- space meters. The locations are based on the number of parking meters being displaced per block as well as input received from IPS based on their operational experience in different cities throughout California. The current plan includes the installation of 54 pay stations with 1 spare pay station if, after implementation, it is determined that another station is needed to provide adequate coverage. The displaced single-space credit card capable meters will be, temporarily, relocated to blocks with existing coin only parking meters. The coin only meters operated by the City are over 20 years old and are no longer supported by the manufacturer. The relocated single-space credit card capable meters will be phased out at a later date by multi-space pay stations or an equivalent technology that provides the same parking payment access before the anticipated loss of 3G cell network connectivity takes place. Staff believes this phased approach to implementation is the best way to transition paid parking from single-space meters to multi-space meters by offering both for a period of time before removing single-space meters altogether. Next Steps If the purchase is approved, the next steps for staff are to finalize the purchase agreement with IPS, develop marketing and outreach materials about the pay stations, and schedule a time for the installation of the pay stations. Attachment B is a term sheet outlining the services and responsibilities of both IPS and the City for the purchase and installation of the multi-space pay stations. IPS has indicated that they will need 10 to 12 weeks from the execution of the purchase agreement to fulfill the order. IPS also indicated that the installation will take approximately 12 to 15 working days depending on the existing conditions of each pay station location. Given these timelines, staff anticipates that the installation will be completed by the end of 2020. Item 8 Packet Page 115 Public Engagement Staff discussed the proposed project with Downtown SLO’s Parking and Access Committee on May 28, 2020. The Committee members were contacted again on June 15, 2020 to provide staff with feedback on the project; however, no formal position was taken. CONCURRENCE The Parking Services Program has reviewed this project with Information Technology Staff and they concur this project work will have minimal impact on City IT infrastructure because the multi-space pay stations communicate and process credit cards in the same way as the current single-space parking meters. The Purchasing Division of the Finance Department concur with the justifications to pursue a sole source purchase with IPS Group. ENVIRONMENTAL REVIEW This project is considered a project under California Environmental Quality Act (CEQA) guidelines; however, it is categorically exempt under CEQA Guidelines Sec. 15301 Class 1(c). FISCAL IMPACT Budgeted: Yes Budget Year: FY2021 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Implementation Cost Parking Fund $404,171.98 $36,300* $440,471.98 Total $404,171.98 $36,300* $440,471.98 *On-going costs include wireless gateway / data fee and meter management software license fee. This amount does not include merchant processing fees which vary depending on usage, merchant processor, and banking service provider used by the customer. As part of the 2020-21 Supplemental Budget that was presented to Council on June 2, 2020, the Parking Fund requested and was approved to reallocate $515,000 in funds previously earmarked for the single-space parking meter upgrade / replacement project to be used instead to invest in multi-space pay stations. The cost to purchase and install the pay stations is $392,756.53 (Exhibit A to Attachment B) and the cost for spare parts for the pay stations is $11,415.45 (Exhibit B to Attachment B). This amount does not include the City’s cost for public noticing during the installation of the equipment or the cost of wayfinding signage. These costs will be determined once final locations of pay stations have been identified. Item 8 Packet Page 116 ALTERNATIVES 1. Deny sole source purchase request and direct staff to pursue a purchase agreement through a Request for Proposals (RFP) process. Staff does not recommend this alternative as the existing single-space credit card parking meters are experiencing more issues and will lose cell network support over the next year. The RFP process will add three to six months, minimum, to the acquisition process not including the time for contract negotiation, purchase, and installation. Additionally, the uniform adoption of new equipment and payment technology from a single vendor reduces integration costs and requires no additional setup for City IT or Finance since communication and credit card processing procedures are already established. 2. Deny the investment in new payment technologies altogether. Staff does not recommend this alternative for the reasons identified in the above alternative but also because multi -space pay stations provide a more “future proof” payment option that is easier to integrate with enforcement technology and non-physical forms of payment. Attachments: a - Draft Resolution b - Term Sheet for Multi-Space Pay Station Installation Item 8 Packet Page 117 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A SOLE SOURCE CONTRACT FOR PURCHASE AND INSTALLATION OF MULI-SPACE PAY STATIONS AND A SOLE SOURCE CONTRACT FOR OPERATION AND MAINTENANCE OF MULTI-SPACE PAY STATIONS WITH IPS GROUP, INCORPORATED WHEREAS, the City of San Luis Obispo has contracted with IPS Group, Incorporated (IPS Group) since 2012 for the use and maintenance of single-space credit card capable parking meters; and WHEREAS, the existing single-space credit card capable parking meters communicate via 3G cellular network that, by the end of 2021, will no longer be supported by the cellular network provider; and WHEREAS, the City has budgeted to invest in new technologies to upgrade the existing on-street and off-street parking payment systems including replacement of existing single-space parking meters; and WHEREAS, the City has recognized the need to upgrade public amenities to provide safer and easier to sanitize equipment in response to the COVID-19 pandemic; and WHEREAS, IPS Group offers multi-space pay stations that have been used in other municipal parking operations to replace single-space parking meters; and WHEREAS, multi-space pay stations offered by IPS Group utilize the same back-end management system currently used by the City to manage the operations and maintenance of all existing single-space credit card capable parking meters; and WHEREAS, utilizing one back-end management system for all on-street payment technology operated by the City provides a holistic, uniform source for all operation, maintenance, and payment information; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Manager, or his or her designee, is authorized to execute a sole source contract with IPS Group, Incorporated for the purchase and installation of multi -space pay stations, as well as any amendments thereto. SECTION 2. The City Manager, or his or her designee, is authorized to execute into a separate sole source service contract with IPS Group, Incorporated for the operations and maintenance of multi-space pay stations as well as any amendments thereto. Item 8 Packet Page 118 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 3. Environmental Determination. This action is considered a project under California Environmental Quality Act (CEQA) guidelines; however, it is categorically exempt under CEQA Guidelines Sec. 15301 Class 1(c). Upon motion of Council Member _________________, seconded by Council Member __________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ____________________________________ Teresa Purrington City Clerk Item 8 Packet Page 119 Term Sheet for Multi-Space Pay Station Equipment Purchase and Installation Exhibit A: Cost Quote for Pay Stations Exhibit B: Cost Quote for Spare Parts IPS Group, Incorporated: •Furnish and install multi-space pay stations in compliance with City Standard Specifications and Engineering Standards. •Provide, to the City, insurance in compliance with City Standard Specifications 7-1.06 •Timeframe from date of agreement execution for milestone activities: o Within seven days, submit order for equipment o Within 14 days, provide construction schedule for completion of equipment installation o Within 150 days, complete installation, commissioning, and training for equipment ▪Anticipated manufacturing and production of pay stations is 10-12 weeks. •Equipment integration with City’s license plate recognition (LPR) enforcement vendor. o IPS Group and the City have not identified a cost for integration but both parties recognize that there may be an integration fee associated with the project. City of San Luis Obispo: •Provide plan set, encroachment permit(s), and Traffic Control Plan; as necessary. •Complete site prep at off-street locations one week prior to beginning of installation of equipment. •Coordinate with PG&E for A/C power; as necessary. o IPS Group will support the City as needed and provide installation specifications for Multi-Space Pay Stations but is not directly responsible for coordination with PG&E on A/C power units. •Communication and outreach to neighboring properties and public about the project. o IPS Group will support the City as needed •Installation of wayfinding signs related to the equipment. o IPS Group will support the City as needed ATTACHMENT B Item 8 Packet Page 120 767-058-4 MS1 Multi-Space - Pay by Plate US Cabinet - EU Interface - US Module – Contactless 55 $6,150.00 $338,250.00 767-296 MS1/MS3 Standard Mounting Plinth 55 $00.00 $00.00 767-295 MS1/MS3 Standard Mounting Pedestal 55 $00.00 $00.00 767-089 MS1/MS3 Installation Hardware 55 $00.00 $00.00 Installation On-site Services (2 Technician(s) - 11 Days) 1 $20,900.00 $20,900.00 Notes-Freight + FREIGHT CHARGES 1 $7,392.15 $7,392.15 Page 1/1 7737 Kenamar Court, San Diego, CA 92121 IPS Sales Quote Date Quote # 07/23/2020 IPS-2020-040372219 Name / Address City of San Luis Obispo Parking Services Dept. Public Works 1260 Chorro ST STE B San Luis Obispo, CA 93401 Ship To City of San Luis Obispo Parking Services Dept. Public Works 1260 Chorro ST STE B San Luis Obispo, CA 93401 Rep P.O. No.Terms FOB PS Net 30 San Diego Item Description Qty Price Total TERMS AND CONDITIONS: 1. Quote is stated in USD. Shipping and sales tax charges may apply. 2. Orders will not be submitted until a Purchase Order has been issued or a signed copy of the quote is received by IPS Group, Inc. If your company uses a blanket purchase order, please write the number in the 'P.O. No.' box near the top of the quote. 3. All requested information must be sent to the email address listed below or via mail. Notification will be sent once the order is submitted for processing. 4. This quote expires 90 days after the date it was issued. 5. Additional installation services required will be charged $950/day per technician. 6. Training and Commissioning will be $1000 minimum on a new installation if applicable. Remarks:None Subtotal $366,542.15 Sales Tax (7.75%)$26,214.38 Grand Total $392,756.53 Signature _______________________________________ Phone #Fax #E-mail 858-568-7648 858-408-7839 support@ipsgroupinc.com EXHIBIT A Item 8 Packet Page 121 800-001 Multi-Space Main Operating Board with LCD and Modem (US) 3 $995.00 $2,985.00 767-026 Standard USA MS 1 Card Reader Assembly 3 $129.00 $387.00 795-054 Coin Validator Assembly Compatible with MK5 and MS1 3 $75.00 $225.00 800-006 Hengstler Thermal Printer with IPS Cover and Custom Spout 2 $795.00 $1,590.00 767-471 Hengstler Printer Custom Spout 2 $05.00 $10.00 767-047-ASY MS 1 Cash Box Assembly with Lock 3.7 L 15 $195.00 $2,925.00 767-019 Pay by Plate Alphanumeric Keypad 6x7 Assembly 2 $225.00 $450.00 767-622-2P MS 1 Multi Space Battery - Tandem/Dual Battery Pack 3 $324.00 $972.00 767-075 MS1 Tandem Battery Bracket 1 $40.00 $40.00 795-600-MST Multi-Space Main Battery Eve (BAT-0005)3 $15.00 $45.00 800-030 Multi-Space Armored Glass Replacement Assembly 3 $125.00 $375.00 767-686 MS1 Battery Cable For Battery Bar (New Battery Cable) 2 $25.00 $50.00 Page 1/2 7737 Kenamar Court, San Diego, CA 92121 IPS Sales Quote Date Quote # 07/28/2020 IPS-2020-072882784 Name / Address City of San Luis Obispo Parking Services Dept. Public Works 1260 Chorro ST STE B San Luis Obispo, CA 93401 Ship To City of San Luis Obispo Parking Services Dept. Public Works 1260 Chorro ST STE B San Luis Obispo, CA 93401 Rep P.O. No.Terms FOB PS Net 30 San Diego Item Description Qty Price Total EXHIBIT B Item 8 Packet Page 122 767-901 MS Paper - 7 inch Paper Roll (Standard)15 $25.00 $375.00 Notes-Freight + FREIGHT CHARGES 1 $178.20 $178.20 Page 2/2 7737 Kenamar Court, San Diego, CA 92121 IPS Sales Quote Date Quote # 07/28/2020 IPS-2020-072882784 Name / Address City of San Luis Obispo Parking Services Dept. Public Works 1260 Chorro ST STE B San Luis Obispo, CA 93401 Ship To City of San Luis Obispo Parking Services Dept. Public Works 1260 Chorro ST STE B San Luis Obispo, CA 93401 Rep P.O. No.Terms FOB PS Net 30 San Diego Item Description Qty Price Total TERMS AND CONDITIONS: 1. Quote is stated in USD. Shipping and sales tax charges may apply. 2. Orders will not be submitted until a Purchase Order has been issued or a signed copy of the quote is received by IPS Group, Inc. If your company uses a blanket purchase order, please write the number in the 'P.O. No.' box near the top of the quote. 3. All requested information must be sent to the email address listed below or via mail. Notification will be sent once the order is submitted for processing. 4. This quote expires 90 days after the date it was issued. 5. Additional installation services required will be charged $950/day per technician. 6. Training and Commissioning will be $1000 minimum on a new installation if applicable. Remarks:None Subtotal $10,607.20 Sales Tax (7.75%)$808.25 Grand Total $11,415.45 Signature _______________________________________ Phone #Fax #E-mail 858-568-7648 858-408-7839 support@ipsgroupinc.com EXHIBIT B Item 8 Packet Page 123 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 8 Packet Page 124 Department Name: Public Works Cost Center: 5101 For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Gaven Hussey, Parking Services Manager SUBJECT: AUTHORIZATION TO NEGOTIATE, EXECUTE, AND MODIFY AGREEMENTS FOR PARKING FUND LEASE SPACES RECOMMENDATION Adopt a Resolution (attachment A) authorizing the City Manager to negotiate and execute new commercial lease agreements and/or modify existing lease agreements with tenants of property located at 860 Pacific Street Suites 101 through 105. DISCUSSION Background - Parking Services Program Managed Commercial Lease Spaces The City’s Parking Services Program manages five commercial lease spaces located on the Pacific Street side of the Marsh Street parking structure. The commercial properties, listed below, typically provide consistent cash flow for the Parking Fund. a) 860 Pacific Street, Suites 101 & 102 – Vacant b) 860 Pacific Street, Suite 103 – Arroyo View Financial, Inc. c) 860 Pacific Street, Suites 104 & 105 – San Luis Obispo Bicycle Coalition Supplemental Budget Adoption Addressed Tenants’ COVID-19 Fiscal Impacts With the adoption of the 2020-21 Supplemental Budget, the City recognized that the economic downturn from the COVID-19 pandemic has created a significant and undue burden on businesses in the City of San Luis Obispo. As detailed in the 2020-21 Supplemental Budget, the Parking Services Program incorporated an extensive work program intended to reinvigorate the local economy by incentivizing businesses and employees to return to business operations once the current restrictions due to COVID-19 are relaxed or lifted completely. The 2020-21 Supplemental Budget identifies an incentive in which the City waives monthly lease payments for the commercial spaces managed by Parking Services, located at 860 Pacific Street for a period of six-months. Once this six -month period is complete, monthly lease payments will resume at the rate identified in the respective lease agreements. Staff recommends that the City Council authorize the City Manager to negotiate and execute new lease agreements and/or modify existing lease agreements with the tenants of the Parking Services Program located at 860 Pacific Street Suites 101 through 105. Attachment A is a Resolution setting forth this authority. Staff anticipates that such new and/or modified leases will include a term reflecting the six-month rent waiver discussed above. Item 9 Packet Page 125 This process will allow staff to respond to the Council’s Economic Recovery goal and support local businesses recovery from COVID-19. The following lease agreement changes are also anticipated: 1. The tenant that occupied 860 Pacific Street Suites 101 and 102 gave notice to the City that they would not be pursuing an extension to their lease agreement and would vacate the suites at the end of June 2020. The current tenant of Suite 103, Arroyo View Financial, has contacted the City and expressed interest in entering into a lease agreement for Suites 101 and 102. 2. The lease agreement with Arroyo View Financial, for 860 Pacific Street Suite 103 is eligible for a second and final five-year extension in October 2020 and the tenant has indicated interest in extending the lease. 3. The lease agreement with San Luis Obispo Bicycle Coalition, for 860 Pacific Street Suites 104 and 105 expired in August 2019 after the final three-year extension term ended. The tenant is currently on a month-to-month lease and has been in contact with the City regarding executing a new lease agreement. a. As the market stabilizes, the City will perform a market assessment and at the conclusion of the term of leases to ensure that the City is recovering costs based on the latest lease market data. CONCURRENCE The San Luis Obispo Bicycle Coalition and Arroyo View Financial both concur with the recommendation to enter into new lease agreements and/or modify current lease agreements. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: FY2021 Funding Identified: Yes Fiscal Analysis: Parking Fund Lease Spaces Monthly Rent Annualized Amount Revenues 860 Pacific Street, Suite 101 & 102 $600 $7,200 860 Pacific Street, Suite 103 $315 $3,780 860 Pacific Street, Suite 104 & 105 $340 $4,080 Total $1,255 $15,060 Item 9 Packet Page 126 At full capacity, the Parking Fund collects $1,255 in revenue each month from the commercial properties located on Pacific Street. The impacts to the Parking Fund for providing rent relief and vacancies have been modeled and built into the FY 2020-21 Supplemental Budget approved by Council. ALTERNATIVES Deny request to authorize City Manager to negotiate and execute new lease agreements and/or modify existing lease agreements. Staff does not recommend this alternative because the Parking Fund is obligated to maintain current agreements for all properties owned by the City. Attachments: a - Draft Resolution Item 9 Packet Page 127 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO NEGOTIATE, EXECUTE, AND MODIFY COMMERCIAL LEASE AGREEMENTS FOR PARKING FUND LEASE SPACES WHEREAS, the Parking Fund manages commercial lease spaces located 860 Pacific Street Suites 101, 102, 103, 104, and 105; and WHEREAS, the Parking Fund has an obligation to maintain current agreements for all properties owned by the City; and WHEREAS, the COVID-19 pandemic has resulted in economic uncertainties for businesses including lease spaces managed by the City’s Parking Fund; and WHEREAS, the Parking Fund’s 2020-21 Supplemental Budget incorporated an extensive work program intended to support the local economy by incentivizing businesses to return to normal operations; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Execution of Documents. The Council hereby authorizes the City Manager to negotiate, execute, and modify commercial lease agreements for properties located at 860 Pacific Street Suites 101 through 105 with terms not to exceed three years. Item 9 Packet Page 128 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 2. Environmental Determination. The California Environmental Quality Act does not apply because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. Upon motion of Council Member _______________, seconded by Council Member _______________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ____________________________________ Teresa Purrington City Clerk Item 9 Packet Page 129 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 9 Packet Page 130 Department Name: Fire Cost Center: 8502 For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Keith Aggson, Fire Chief Prepared By: James Blattler, Administrative Analyst SUBJECT: AUTHORIZATION TO APPLY FOR FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) ASSISTANCE TO FIREFIGHTERS GRANT (AFG) AND THE CALIFORNIA FIRE FOUNDATION WILDFIRE SAFETY & PREPAREDNESS GRANT RECOMMENDATION 1. Authorize the Fire Department to apply for a grant to the Federal Assistance to Firefighters Grant (AFG) Program for the amount of $137,510 to send two EMT firefighters through certified paramedic training; and 2. Authorize the Fire Department to apply for a grant to the California Fire Foundation Wildfire Safety & Preparedness Grant Program for the amount of $14,953.52 to purchase Personal Protective Equipment coats for wildland firefighting; and 3. Authorize the City Manager, or designee, to execute the grant documents and approve the budget changes necessary to appropriate the grant amount upon notification that t he grant has been awarded. DISCUSSION State, federal, and non-profit grants are occasionally offered to assist local governments with the financial impacts associated with daily operations and/or mandated programs. The Fire Department actively seeks out these opportunities to enhance the effectiveness of the Department while increasing fiscal sustainability for the City. Two grant opportunities were identified, which are in line with these goals and current needs for the Fire Department : the Federal Fiscal Year (FY) 2019 AFG Program and the California Fire Foundation’s Wildfire Safety & Preparedness Program. Background Assistance to Firefighters Grant The Federal FY 2019 AFG Program is one of three grant programs that constitute the Department of Homeland Security’s (DHS) and the Federal Emergency Management Agency’s (FEMA) focus on enhancing the safety of the public and firefighters with respect to fire and fire - related hazards. The AFG Program accomplishes this goal by providing direct financial assist ance to eligible fire departments for critical training and equipment. The AFG Program represents one part of a comprehensive set of measures authorized by Congress and implemented by DHS. Item 10 Packet Page 131 Among the five basic homeland security missions noted in the DHS Quadrennial Homeland Security Review, the AFG Program supports the goal to Strengthen National Preparedness and Resilience. For federal FY 2019, Congress appropriated $315,000,000 in funding for AFG and is projecting to award grants to 2,500 applicants. The objectives of the AFG program is to provide critically needed resources that equip and train emergency personnel to recognized standards, enhance operational efficiencies, foster interoperability, and support community resilience. In calendar year 2019, the Department responded to more than 6,100 calls, 63% oh which were medical related. Advanced Life Support (ALS) is the highest level of pre-hospital emergency medical services that the Department is authorized to provide and is utilized during the majority of EMS incidents. The Department is currently understaffed with paramedics and does not have the funding for tuition, overtime, and travel costs needed to train EMT Firefighters to the level of Paramedic. If awarded, the AFG will allow the Department to train 2 EMT Firefighters as Paramedics at the City’s local community college. Of the 45 allocated firefighter positions, the Department has 24 allocated Paramedic positions. Currently, the overall Department staffs 42 firefighters, 19 of which are Paramedics. An increase in paramedics will not only help maintain the level of available pre-hospital care, but will also assist with the strain put on current paramedic staff and can improve the level of care available to staff members suffering medical emergencies while on duty. The Department has been unsuccessful in filling paramedic vacancies over the past four years and does not believe further recruitments will result in the successful hiring of paramedics due to the current Memorandum of Agreement with the Firefighters, Local 3523, which limits the Department’s ability to conduct a paramedic only recruitment, or rate paramedic-firefighter candidates higher than EMT-firefighter candidates. Fire Foundation Safety Grant Created in 1987, the California Fire Foundation (CFF), a statewide nonprofit 501(c)(3) charitable organization, provides public safety prevention education initiatives, emotional and financial assistance to families of fallen firefighters, firefighters and the communities they protect. CFF’s mandate includes an array of programs that honor fallen firefighters and provide survivor and victim assistance, as well as public safety education initiatives aimed at preventing injuries and death from preventable safety hazards. Even without the coronavirus outbreak, as weather heats up across California and increases wildfire risk, our state is bracing for a long, hot summer due to the record drought. COVID-19 could make this fire season much worse. Programs or projects that focus on supporting wildfire prevention or relief efforts, which are aimed at protecting and enhancing the public’s safety and/or the safety of California’s firefighters and other first responders, including those that involve Personal Protective Equipment (PPE), are prioritized in this program. Adequate PPE is essential in allowing the Fire Department personnel to directly and aggressively fight wildland fires and protect homes and the community. Additionally, the grant will give the Department a strong message to the community that wildfire preparedness is a top priority. As part of the grant project, staff will promote the CFF’s grant to help encourage community wildfire preparedness. Item 10 Packet Page 132 The grant will request funding for the purchase of new coats for wildland firefighting to help maintain adequate PPE levels for all emergency response personnel. Policy Context The recommended actions are consistent with the City of San Luis Obispo’s Financial Management Manual, Section 740 - Grant Management Policy. The policy states that Council will approve all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager. Public Engagement This item is on the agenda for the August 18, 2020 City Council meeting and will follow all required postings and notifications. The public may have an opportunity to comment on this item at or before the meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2020-21 Funding Identified: Yes Fiscal Analysis: AFG Program (Paramedic Training) Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $12,501 $0 $12,501 State $0 $0 $0 Federal $129,009 $0 $129,009 Fees $0 $0 $0 Other: $0 $0 $0 Total $137,510 $0 $137,510 If the Fire Department were to receive funding from the AFG Program, the City would have to match the Federal grant funds equal to 10% of the total project cost. The total grant request is $137,510, and if fully funded would require a match from the City of $12,501. The Fire Department plans to pursue potential available carryover monies from FY 2019-20 operating budgetary savings to fund the match requirement and any additional project costs. If carryover is unavailable or the request is turned down, the Department will absorb the costs with the approved 2020-21 supplemental budget. The two firefighters who receive the training will be eligible for paramedic incentive pay once certified. The Department has already received authorization to fund a total of 24 paramedic positions. The increase in pay will be considered when budgeting the 2021-23 City Financial Plan, which is the earliest the employees would qualify for the incentive pay. Item 10 Packet Page 133 Fiscal Analysis: Wildfire Safety & Preparedness Program (Personal Protective Equipment) Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $0 $0 $0 State $0 $0 $0 Federal $0 $0 $0 Fees $0 $0 $0 Other: $14,954 $0 $14,954 Total $14,954 $0 $14,954 The California Fire Foundation Wildfire Safety & Preparedness Grant Program does not require any City matching funds. If both grants are awarded, the Fire Department could utilize funding appropriated for wildland PPE to assist with the 10% matching requirement associated with the AFG Program. For FY 21 the Fire Department has $1,000 appropriated for wildland PPE. ALTERNATIVE The Council could decide not to pursue the grant monies or only pursue grants without matching fund requirements. This is not recommended as fire service grant opportunities are limited and the grant funds would only serve to enhance the effectiveness of the Fire Department while increasing fiscal sustainability for the City. Item 10 Packet Page 134 Department Name: Community Development Cost Center: 4005 For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Director Prepared By: John Rickenbach, Contract Planner SUBJECT: UPDATED MITIGATION MEASURES FOR THE SAN LUIS RANCH SPECIFIC PLAN RECOMMENDATION 1. Adopt a Resolution (Attachment A) approving two updated traffic mitigation measures to be included in the Mitigation Monitoring and Reporting Program (MMRP) for the approved San Luis Ranch Specific Plan, and 2. Approve an Addendum (Attachment B) to the certified Final Supplemental Environmental Impact Report (FSEIR) to satisfy CEQA compliance for this action. DISCUSSION Background The project applicant is MI San Luis Ranch LLC (SLR). In reviewing the traffic mitigation requirements set forth in the MMRP in the context of modified project conditions, an updated traffic study concluded that there was no immediate need for required improvements at the intersections of Higuera Street/Tank Farm Road and Prado Road/Tank Farm Road. Based on the results of that study, the applicant proposes to modify two of the mitigation measures to allow for a fair share payment toward these improvements rather than actual construction prior to development, as is currently required. An Addendum to the FSEIR has been prepared to satisfy requirements under the California Environmental Quality Act (CEQA). The San Luis Ranch Specific Plan (SLRSP) was approved on July 18, 2017, along with an MMRP to ensure that mitigation measures associated with development under the project are implemented. On July 17, 2018, the SLRSP was amended to allow for more flexibility in the sequencing of development under the Specific Plan. A Final Supplemental EIR (FSEIR) was certified to address this action. As a result, some mitigation measures were modified, and the MMRP was updated to reflect these changes. New Affordable Housing Proposal Since the time the project was approved, the Development Plan for a portion of the specific pla n contemplates additional housing, but less non-residential square footage. The overall amount of housing could increase, to address a possible affordable housing project of 60-77 units within the Neighborhood Commercial area that was not considered in previous CEQA documentation. Item 11 Packet Page 135 At the same time, the amount of commercial square footage would decrease by 13,700 SF. To analyze the effects of these updated land use changes on traffic circulation, a traffic study was prepared by Central Coast Transportation Consulting (CCTC) and reviewed by City staff (Attachment C). The report found that the updated land use plan resulted in a lower overall trip generation for the SLR project. In turn, the analysis concluded that while required mitigation measures at the intersections of Higuera Street/Tank Farm Road and Prado Road/Tank Farm Road would still be necessary to address long-term cumulative impacts, in the short term, these improvements would not be needed to address project-specific impacts. Instead, it would be sufficient to pay fair share fees toward these improvements, which would then be constructed at a later date by the City or another developer that triggered the need for these improvements. Modified Mitigation Measures As a result, the applicant proposes to modify the two mitigation measures to allow for a fair share payment toward these improvements rather than actual construction prior to development, as is currently required. Except as noted below, all mitigation measures included in the certified FSEIR would still be applicable to the Project as stated in the FSEIR. Under this action, only those mitigation measures listed below would be modified from those in the certified FSEIR and supersede those in the certified FSEIR. The MMRP would be updated to reflect these changes. New language is shown in underline and deleted language is shown in cross-out. T-1(g) Intersection #16: S. Higuera Street & Tank Farm Road. • Pay Fair share costs and dedicate necessary ROW for construction of the Prado Road Overpass & NB Ramps (Timing & Amount of Fair Share Payments as established in San Luis Ranch Development Agreement). • Develop a Travel Demand Management Plan consistent with section 2.4.3 and to the satisfaction of the Public Works Director (Prior to Buil ding Permits or Occupancy) • Pay fair share costs in the amount of $42,500 toward future construction by City or another developer of an extension of the Extend northbound right turn pocket to 230' and channelize movement (Prior to Building Permits or Occupancy) T-2(j) Intersection #18: Prado Road & Higuera Street. • Install 2nd U.S. 101 northbound left turn lane (Prior to Building Permits or Occupancy) • Pay fair share costs in the amount of $75,000 toward future construction by City or another developer of an extension of the Extend westbound right turn pocket to 400' (Prior to Building Permits or Occupancy) The dollar amounts identified in the modified mitigation measures are identified in the San Luis Ranch Development Agreement, which also indicates that the projects will be constructed by others. As a result, the proposed modification to mitigation measures is consistent with the Development Agreement for the project. Item 11 Packet Page 136 Based on the CCTC study, there would be no new impacts associated with this action. Shor t- term impacts would be less than significant, and long-term cumulative impacts and related mitigation would still be the same as described in the FSEIR. For that reason, an Addendum to the FSEIR has been prepared to document this proposed modification to the MMRP. Under CEQA Guidelines Section 15164(b), an Addendum to an EIR is the appropriate environmental document in instances when “only minor technical changes or additions are necessary or none of the conditions described in Section 15162 calling for the preparation of a subsequent EIR have occurred.” An Addendum does not require public circulation and instead can be approved simultaneously with a proposed action that it supports. Previous Council or Advisory Body Action The SLRSP was approved by the City Council on July 18, 2017, along with an MMRP. On July 17, 2018, the City Council approved an amendment to the SLRSP to allow for more flexibility in the sequencing of development under the Specific Plan. At the same hearing, it introduced an Ordinance for a Development Agreement (DA) that would implement future development under the SLRSP. The DA was formally adopted at a subsequent City Council meeting on August 21, 2018. In a related action, on April 7, 2020, the City Council approved a Draft Vesting Tentative Tract Map (VTTM) to support development within the multi-family portion of the SLRSP. That project, and all other development projects under the SLRSP, would be subject to the mitigation requirements included in the MMRP as revised under this proposed action. In support of these previous Council approvals, the SLRSP and subsequent development applications related to the Specific Plan have been reviewed by several advisory bodies, including but not limited to the Architectural Review Commission (ARC) and Planning Commission (PC). Policy Context 1. General Plan, San Luis Ranch Specific Plan, and Zoning Regulations The proposed action would not modify any aspect of development approved under the SLRSP but would modify two of the mitigation measures in a way that would not introduce new impacts, nor increase the severity of previously identified impacts under CEQA. The proposed action is therefore consistent with the SLRSP, which in turn was found to be consistent with the General Plan at the time of its adoption in July 2017, and subsequent amendment in July 2018. An evaluation of the SLRSP’s consistency with General Plan policies is discussed at length in Section 4.9 of the certified Final EIR. The proposed action is consistent with the City’s Zoning Regulations. Item 11 Packet Page 137 Public Engagement Consistent with the City’s Public Engagement and Noticing (PEN) Manual and the City’s Municipal Code, staff noticed this item per the City’s notification requirements. Legal advertisements were posted in the New Times ten days prior to this meeting. Additionally, postcards were sent to both tenants and owners of properties located within 300 feet of the project site ten days before this meeting. The same noticing requirements were followed prior to each advisory body hearing associated with the SLRSP. CONCURRENCES The City’s review of this project involved all City departments associated with the development review process. No conditions of approval were added as a result of this review. Upon City Council approval, the Community Development Department will update the MMRP as indicated in the attached Resolution. ENVIRONMENTAL REVIEW On July 18, 2017, the City Council certified the FEIR for the SLRSP and approved the SLRSP through Council Resolution 10822 (2017 Series). A Final Supplemental EIR to address modifications to the phasing plan within the SLRSP was certified by the City Council on July 17, 2018, through Council Resolution 10927 (2018 Series). Based on an updated 2020 traffic study, there would be no new impacts associated with the proposed action. Short-term impacts would be less than significant, and long-term cumulative impacts and related mitigation would still be the same as described in the FSEIR. For that reason, an Addendum to the FSEIR has been prepared to document this proposed modification to the MMRP. Under CEQA Guidelines Section 15164(b), an Addendum to an EIR is the appropriate environmental document in instances when “only minor technical changes or additions are necessary or none of the conditions described in Section 15162 calling for the preparation of a subsequent EIR have occurred”. An Addendum does not require public circulation and can instead be approved simultaneously with a proposed action that it supports. FISCAL IMPACT Budgeted: Yes/No (reference Financial Plan page# in narrative) Budget Year: Funding Identified: Yes/No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total $N/A Item 11 Packet Page 138 There will be no net fiscal impact related to approving the proposed action. The City will collect fair share payment totaling $117,500 in the Transportation Impact Fee Fund toward Mitigation Measures T-1(g) and T-2(j), which will be used toward the construction of these improvements at the time they are needed to mitigate long-term cumulative impacts. The amount to be collected toward these improvements is consistent with the fair share costs identified in the previously approved Development Agreement with SLR. No previously unanticipated fiscal impacts would occur as a result of the proposed action. ALTERNATIVES 1. Approve the project. An action to adopt the Resolution as proposed, or with modifications to findings or project conditions. 2. Continue project. An action to continue the item should include a detailed list of additional information or analysis required. 3. Deny the project. An action denying the application should include findings that cite the basis for denial and should reference inconsistency with the General Plan, SLRSP, or other policy documents. Attachments: a - Draft Resolution b - Addendum to the Certified Final Supplimental EIR c - Appendix A - Updated Traffic Study Item 11 Packet Page 139 R _______ RESOLUTION NO. __________ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, MODIFYING MITIGATION MEASURES AND MITIGATION MONITORING AND REPORTING PLAN AND APPROVING AN ADDENDUM TO THE FINAL SUPPLEMENTAL EIR FOR THE SAN LUIS RANCH PROJECT FOR PROPERTY LOCATED AT 1035 MADONNA ROAD ("SAN LUIS RANCH") WHEREAS, on July 18, 2017, the City Council of the City of San Luis Obispo certified a Final EIR and approved the San Luis Ranch Specific Plan as well as related entitlements including a General Plan Amendment, pre-zoning of the site in anticipation of annexation, Development Plan/Vesting Tentative Tract Map No. 3096, and Term Sheet; and WHEREAS, on July 17, 2018, the City Council of the City of San Luis Obispo certified a Final Supplemental EIR (FSEIR) and approved an amendment to the San Luis Ranch Specific Plan, and introduced an ordinance for a Development Agreement to implement the revised project; and WHEREAS, on August 21, 2018, the City Council of the City of San Luis Obispo approved the Development Agreement to implement the revised project; and WHEREAS, the San Luis Ranch project has proposed to implement the Project in a manner that is consistent with the San Luis Ranch Specific Plan, but as demonstrated in a traffic study prepared to evaluate the potential impacts of modifications to the original mitigation measures will result in a reduction of vehicle trips associated with the development Project at two intersections evaluated in the FSEIR - Intersection #16: South Higuera Street & Tank Farm Road and Intersection #18: Prado Road and South Higuera Street; and WHEREAS, an Addendum to the FSEIR has been prepared that demonstrates that no criteria under CEQA Guidelines Section 15162 exist that would require the preparation of any subsequent environmental review under CEQA; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented to the City Council. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows: SECTION 1. Addendum to Final Supplemental EIR. The City Council does hereby approve an Addendum to the Final Supplemental Environmental Impact Report for the San Luis Ranch project based on the following findings: Item 11 Packet Page 140 Resolution No. _____ (2020 Series) Page 2 R ________ 1. Subsequent to the approval of an amendment to the previously approved San Luis Ranch project in July 2018, the City conducted additional analysis of traffic operations resulting from the Project. The Addendum incorporates the additional analysis for inclusion in the administrative record. 2. That the Addendum was prepared for the Project in compliance with the requirements of CEQA and the CEQA Guidelines. 3. That based upon the evidence submitted and as demonstrated by the analysis included in the Addendum, none of the conditions described in Sections 15162 or 15163 of the CEQA Guidelines calling for the preparation of a Subsequent or Supplemental EIR or Negative Declaration have occurred. 4. In connection with the Proposed Project and this City Council's review of the Addendum, this City Council has independently reviewed all of the CEQA Documents and has exercised its independent judgment in making the findings and determinations set forth herein. SECTION 2. Modification of Mitigation Measures. Except as noted below, all mitigation measures included in the certified FSEIR would be applicable to the Project as stated in the FSEIR. The mitigation measures listed below are modified from the certified FSEIR and supersede those in the certified FSEIR. New language is shown in underline and deleted language is shown in cross-out. T-1(g) Intersection #16: S. Higuera Street & Tank Fa rm Road. • Pay Fair share costs and dedicate necessary ROW for construction of the Prado Road Overpass & NB Ramps (Timing & Amount of Fair Share Payments as established in San Luis Ranch Development Agreement). • Develop a Travel Demand Management Plan consistent with section 2.4.3 and to the satisfaction of the Public Works Director (Prior to Building Permits or Occupancy) • Pay fair share costs in the amount of $42,500 toward future construction by City or another developer of an extension of the Extend northbound right turn pocket to 230' and channelize movement (Prior to Building Permits or Occupancy) T-2(j) Intersection #18: Prado Road & Higuera Street. • Install 2nd U.S. 101 northbound left turn lane (Prior to Building Permits or Occupancy) • Pay fair share costs in the amount of $75,000 toward future construction by City or another developer of an extension of the Extend westbound right turn pocket to 400' (Prior to Building Permits or Occupancy) Item 11 Packet Page 141 Resolution No. _____ (2020 Series) Page 3 R ________ SECTION 3. Modification of Mitigation and Monitoring Reporting Plan. The references to Mitigation Measures T-1(g) and T-2(j) in the Mitigation Monitoring and Reporting Program (MMRP) are hereby amended as set forth in Section 2 of this Resolution, above. Upon motion of Council Member ____________, seconded by Council Member ____________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _______________________. ____________________________________ Teresa Purrington City Clerk Item 11 Packet Page 142 071928\11827983v2 1 ADDENDUM TO THE CERTIFIED FINAL SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT FOR THE SAN LUIS RANCH PROJECT AUGUST 2020 A. INTRODUCTION This document is an Addendum to the Final Supplemental Environmental Impact Report (FSEIR) prepared for the San Luis Ranch Project (State Clearinghouse Number 2015101083). The FSEIR was certified by the City of San Luis Obispo on July 17, 2018, pursuant to City Council Resolution No. 10927 (2018 Series). The Addendum is intended to bring the existing CEQA documentation up to date as appropriate. Because there are no new significant impacts or mitigation measures as a result of this updated analysis, an Addendum is the appropriate CEQA document. B. ADDENDUM REQUIREMENTS The Addendum has been prepared in accordance with the relevant provisions of the California Environmental Quality Act (CEQA) of 1970 (as amended) and the State CEQA Guidelines as implemented by the City of San Luis Obispo. According to §15164(b) of the State CEQA Guidelines, an Addendum to an Environmental Impact Report (EIR) is the appropriate environmental document in instances when “only minor technical changes or additions are necessary or none of the conditions described in Section 15162 calling for the preparation of a subsequent EIR have occurred”. Section 15162(a) of the State CEQA Guidelines states that no subsequent Negative Declaration shall be prepared for a project unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: (1) Substantial changes are proposed in the project which will require major revisions of the previous EIR or Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR or Negative Declaration was adopted, shows any of the following: (A) The project will have one or more significant effects not discussed in the previous EIR or Negative Declaration; Item 11 Packet Page 143 071928\11827983v2 2 (B) Significant effects previously examined will be substantially more severe than shown in the previous EIR or Negative Declaration; (C) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or (D) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR or Negative Declaration would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. This Addendum does not require circulation because it does not provide significant new information that changes the certified FSEIR in a way that deprives the public of a meaningful opportunity to comment upon a substantial adverse environmental effect of the project or a feasible way to mitigate or avoid such an effect. This Addendum includes this introduction and a description of the proposed actions addressed in the Addendum as they related to the previously-approved project. The technical analysis in support of this Addendum is included as an appendix to this document for reference (Appendix A). The CEQA documentation for this project, including this Addendum and certified FSEIR, is available for review on the City’s website at www.slocity.org. C. PREVIOUS CEQA DOCUMENTATION The City Council unanimously certified a Final EIR and approved the project on July 18, 2017, pursuant to City Council Resolution No. 10822 (2017 Series). A Notice of Determination (NOD) was prepared, and there were no legal challenges to the adequacy of the Final EIR during the 30- day statute of limitations associated with the NOD, pursuant to CEQA (PRC Section 21167 and CEQA Guidelines Section 15094). Subsequently, the City Council unanimously certified a Final Supplemental EIR and approved a modified project on July 17, 2018, pursuant to City Council Resolution No. 10927 (2018 Series). A Notice of Determination (NOD) was prepared, and there were no legal challenges to the adequacy of the Final EIR during the 30-day statute of limitations associated with the NOD, pursuant to CEQA (PRC Section 21167 and CEQA Guidelines Section 15094). D. REASONS WHY AN ADDENDUM IS APPROPRIATE Subsequent to the approval of an amendment to the previously approved San Luis Ranch project in July 2018, the City of San Luis Obispo conducted additional analysis of traffic operations related to the Project, a copy of which is attached hereto as Appendix A. The supplemental traffic analysis evaluates a proposal to implement the Project in a manner that is consistent with the San Luis Ranch Specific Plan, but with modifications to certain land uses, including a Item 11 Packet Page 144 071928\11827983v2 3 reduction in the amount of Office square footage from 100,000 sf to 97,000 sf, a reduction in the amount of retail square footage from 150,000 sf to 139,300 sf, and an increase in residential uses from 580 dwelling units to up to 654 dwelling units, of which up to 281 would be single family residences and 373 would be multi-family residences, some of which are identified as affordable housing. The change in buildout potential will result in fewer vehicle trips associated with development of the Project at two intersections evaluated in the FSEIR - Intersection #16: South Higuera Street & Tank Farm Road and Intersection #18: Prado Road and South Higuera Street. The updated traffic analysis concludes that it would be appropriate to modify the mitigation measures associated with these intersections from requiring construction of improvements in conjunction with development of the Project to requiring payment of the Project’s fair share of the cost of the future improvements by the City or a future developer at a time to be determined by the City. The proposed changes do not materially change the findings and conclusions of the FSEIR, making a second Supplemental EIR unnecessary pursuant to Section 15162 of the CEQA Guidelines. E. UPDATED PROJECT ELEMENTS As discussed above, the project evaluated in this Addendum includes modifications from what was evaluated in the certified Final EIR and FSEIR to reflect an increase in housing potential from 580 units to 654 units, and a reduction in non-residential area from 250,000 SF to 236,300 SF. The overall land use mix and pattern envisioned under the approved Specific Plan otherwise remains unchanged. Please refer to the FEIR and FSEIR for setting information related to analyzing project impacts. F. UPDATED ENVIRONMENTAL IMPACT ANALYSIS This section addresses impacts associated with the project changes that have been proposed since the FSEIR was certified in July 2018. Except as noted below, none of the analysis or discussion included in the certified FSEIR has changed. The analysis addresses all the issue areas discussed in the Final EIR and FSEIR. Transportation The proposed changes would not affect any of the Project’s construction-related impacts or the overall footprint of development, which remains consistent with development that could occur under the approved Specific Plan. As discussed below, based on the June 2020 traffic memo, attached hereto as Appendix A, there would be fewer trips generated by development under the San Luis Ranch Specific Plan, and thus commensurately lesser impacts than what were identified in the FEIR/FSEIR. Previously identified impacts and mitigation measures would still apply. However, based on the June 2020 traffic memo, two mitigation measures may be modified as proposed without changing the severity of identified impacts. With regard to the Project’s operational impacts, the updated traffic analysis concludes that the implementation of mitigation measures required for two intersections analyzed in the FSEIR – Intersection #16: South Higuera Street & Tank Farm Road and Intersection #18: Prado Road and South Higuera Street – could be modified without additional impact from requiring construction of the improvements discussed therein in conjunction with buildout of the Pr oject Item 11 Packet Page 145 071928\11827983v2 4 to payment of the Project’s fair share toward future construction of these improvements by the City or a future developer, as determined by the City, when warranted by then existing conditions. These mitigation measures are modified as follows, new language is shown in underline and deleted language is shown in cross-out: T-1(g) Intersection #16: S. Higuera Street & Tank Farm Road. • Pay Fair share costs and dedicate necessary ROW for construction of the Prado Road Overpass & NB Ramps (Timing & Amount of Fair Share Payments as established in San Luis Ranch Development Agreement). • Develop a Travel Demand Management Plan consistent with section 2.4.3 and to the satisfaction of the Public Works Director (Prior to Building Permits or Occupancy) • Pay fair share costs in the amount of $42,500 toward future construction by City or another developer of an extension of the Extend northbound right turn pocket to 230' and channelize movement (Prior to Building Permits or Occupancy) T-2(j) Intersection #18: Prado Road & Higuera Street. • Install 2nd U.S. 101 northbound left turn lane (Prior to Building Permits or Occupancy) • Pay fair share costs in the amount of $75,000 toward future construction by City or another developer of an extension of the Extend westbound right turn pocket to 400' (Prior to Building Permits or Occupancy) No other changes to any other transportation-related mitigation measures are proposed. Air Quality, Greenhouse Gas Emissions, and Noise The reduction in the Project’s traffic would result in corresponding reductions in the Project’s Air Quality, Greenhouse Gas Emissions and operational Noise impacts, which are largely based on trip generation. However, the level of impacts identified in the FEIR and FSEIR would not change, nor would any mitigation measures associated with these issue areas. Water Resources and Recreation As noted in the FSEIR, the approved Specific Plan Project is projected to result in a total service population of 2,135 persons, of which the Project would generate 1,293 residents and 842 employees. Based on the population generation factors included in the FSEIR, the proposed changes would reduce the total service population to 2,042 persons, comprised of 1,418 residents (a net increase of 125 residents) and 624 employees (a net decrease of 218 employees). The changes in the service population for the project are not expected to generate any new or increased environmental impacts related to demands on water resources or recreational facilities, as described below. Item 11 Packet Page 146 071928\11827983v2 5 Based on the water generation rates in Section 4.13 of the EIR, the proposed changes will result in an increase in water demand from 217.6 AFY to 226.66 AFY; however, this amount is well within the amount of available water disclosed under the EIR and would not result in any new or increased significant impacts. Similarly, the addition of 125 residents, an increase of less than 10%, would place some additional demands on City park and recreation facilities. However, as discussed in Section 4.11 of the FEIR, in addition to park facilities being constructed within the project, the additional residential units will pay required City park fees, which will reduce any impacts to recreational facilities to a level of less than significance, and the proposed changes would not result in any new or increased significant impacts. Other Impacts Described in the FEIR and FSEIR Several impacts described in previous CEQA documentation are based on the amount of land converted to development activities. The issues include Agricultural Resources, Biological Resources, Cultural Resources, Hazards, Hydrology/Water Quality, and Land Use. Because the development footprint would not change under the updated Project, impacts and mitigation measures related to these issues would not change. G. DETERMINATION In accordance with Section 15164 of the CEQA Guidelines, the City of San Luis Obispo (City) has determined that this Addendum to the certified FSEIR is necessary to document changes or additions that have occurred in the project description since the FSEIR was originally certified. The City has reviewed and considered the information contained in this Addendum and finds that the preparation of subsequent CEQA analysis that would require public circulation is not necessary. Item 11 Packet Page 147 071928\11827983v2 6 APPENDIX A UPDATED TRAFFIC ANALYSIS FOR SAN LUIS RANCH PROJECT JUNE 2020 Item 11 Packet Page 148 (805) 316-0101 895 Napa Avenue, Suite A-6, Morro Bay, CA 93442 DRAFT MEMORANDUM Date: June 26, 2020 To: Luke Schwartz, City of San Luis Obispo From: Joe Fernandez and Travis Low, CCTC Subject: San Luis Ranch – Draft Project Description/Mitigation Changes This memorandum estimates the vehicular trip generation resulting from a revised project description for the San Luis Ranch project, and evaluates the need for turn lanes modifications at two intersections with the revised project. The revised project description produces fewer vehicle trips and therefore would have less severe impacts than previously disclosed. In summary, the revised project is expected to have an insignificant effect on delay/LOS and queuing at both intersections and no mitigations are recommended. BACKGROUND The Transportation Impact Analysis Report prepared for the San Luis Ranch Specific Plan (‘TIAR’, Omni - Means, Ltd, November 2016) developed mitigation measures for the project’s EIR. Since this time the project description has changed and would result in fewer vehicle trips under all analysis time periods. The project is conditioned to modify the following intersections where the modifications are infeasible or undesirable: • S Higuera Street/Tank Farm Road (TIAR intersection #16): the condition to extend the northbound right turn is not desired by the City due to secondary tree removal impacts. • S Higuera Street/Prado Road (TIAR intersection #18): the condition to install dual northbound left turn lanes is infeasible until the City widens the bridge west of the intersection to provide dual receiving lanes. The intent of this analysis is to revisit the need for these improvements under Near Term Plus Project conditions considering the revised project description. ANALYSIS This analysis uses the Synchro analysis files and volumes from the TIAR. Intersection level of service (LOS) was determined using Synchro 10 and queue lengths were determined using the companion SimTraffic microsimulation software by taking the average of five runs. Note that the TIAR used the Synchro 9 software package, which is due to reach its end of life later this year. Trip Generation and Assignment The revised project description, new trip generation estimates, and percent change from the previous project description are shown in Table 1. Note that the TIAR used data from the 9th Edition of the Institute of Transportation Engineers (ITE) Trip Generation Manual, which is now out of print. The revised estimates use the 10th Edition. Item 11 Packet Page 149 2 San Luis Ranch – Draft Mitigation Review Central Coast Transportation Consulting June 26, 2020 The revised project description is expected to result in fewer gross vehicular trips than the previous project description during each analysis period. The project trip assignment from the TIAR was reduced proportionally for this analysis based on the revised trip generation estimates. Delay/LOS Table 2 shows the delay/LOS at the intersections under Near Term and Near Term Plus Project conditions, with Synchro output sheets included as Attachment A. The intersections are expected to operate with acceptable delay/LOS both with and without the project. Daily In Out Total In Out Total Single-Family Residential1 281 DU 2,690 51 153 204 173 101 274 Multi-Family Residential2 373 DU 2,779 38 129 167 120 71 191 Commercial3 139,300 s.f.7,532 137 84 221 333 361 694 Hotel4 200 rooms 1,831 56 39 95 63 61 124 Office5 97,000 s.f.1,030 101 17 118 18 93 111 Parks6 5.8 acres 290 19 19 38 13 13 26 16,152 402 441 843 720 700 1,420 16,917 466 448 914 777 807 1,584 -4.5% -13.7% -1.6% -7.8% -7.3% -13.3% -10.4% Previous Project Description Change 1) ITE Land Use Code #210, Single-Family Detached Housing. Fitted curve equations used. 2) ITE Land Use Code #220, Multifamily Housing (Low-Rise). Fitted curve equations used. Source: ITE Trip Generation Manual , 10th Edition, 2017; SANDAG Brief Guide , 2002; Omni-Means, 2016; CCTC, 2020. 3) ITE Land Use Code #820, Shopping Center. Fitted curve equations used. 4) ITE Land Use Code #310, Hotel. Fitted curve equations used. 5) ITE Land Use Code #710, General Office Building. Fitted curve equations used. 7) DU = Dwelling Unit; s.f. = Square Foot 6) SANDAG, City Parks. Land Use Size7 AM Peak Hour PM Peak Hour Gross Vehicular Trips Table 1: Weekday Gross Vehicular Trip Generation ID Intersection Delay1 LOS Delay1 LOS AM 37.5 D 37.8 D PM 24.7 C 25.0 C AM 19.8 B 19.8 B PM 27.1 C 27.2 C 1. HCM 2010 average control delay in seconds per vehicle. 18 Higuera/Prado Note: Unacceptable operations shown in bold text. Table 2: Intersection Auto Level of Service Peak Hour 16 Higuera/Tank Farm Near Term Near Term +Project Item 11 Packet Page 150 3 San Luis Ranch – Draft Mitigation Review Central Coast Transportation Consulting June 26, 2020 Queues Table 3 shows the queues for key movements at the intersections under Near Term and Near Term Plus Project conditions, with SimTraffic output sheets included as Attachment B. With the addition of project traffic, the queue lengths would change by less than one vehicle length. This is an insignificant impact. CONCLUSION The revised project is expected to have an insignificant effect on delay/LOS and queuing at both intersections. Therefore, no mitigations are recommended. The project would contribute their fair share towards planned improvements through the City’s Transportation Impact Fee program. Please let us know if you have any questions. ATTACHMENTS Attachment A: Synchro Output Sheets Attachment B: SimTraffic Output Sheets Near Term Near Term +Project AM 192 190 PM 177 166 AM 206 209 PM 228 237 AM 92 97 PM 133 127 AM 49 51 PM 98 96 AM 162 174 PM 220 218 AM 219 213 PM 179 172 Table 3: Queues 95th Percentile Queues (ft)1 16 Higuera/Tank Farm NBR 100 SBL 165 Movement Storage Length (ft) Peak HourIntersectionID 1. Queue length that would not be exceeded 95 percent of the time. Note: Bold indicates queue length longer than storage length. 18 Higuera/Prado WBL 105 SBL 200 NBL 140 WBR 110 Item 11 Packet Page 151 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 11 Packet Page 152 Department Name: Administration Cost Center: 1021 For Agenda of: August 18, 2020 Placement: Consent Item Estimated Time: N/A FROM: Teresa Purrington, City Clerk SUBJECT: SELECTION OF VOTING DELEGATE AND ALTERNATES – LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE RECOMMENDATION Appoint Council Member Erica A. Stewart as the Voting Delegate and Council Member Andy Pease and Council Member Carlyn Christianson as Alternate Voting Delegates to vote on the City’s behalf at the Annual Business Meeting of the League of California Cities on Friday, October 9, 2020. DISCUSSION The League of California Cities Annual Conference will be held virtually on October 7 - 9, 2020. An important component of the Annual Conference is the Annual Business Meeting scheduled for 12:30 PM on Friday, October 9, 2020. At this meeting, the League membership will consider and take action on resolutions that establish League policy. In order to vote at the Annual Business Meeting, the City Council must designate a voting delegate. Council may also appoint up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Policy Context Per the League of California Cities bylaws, each member city has a right to ca st one vote on matters pertaining to League policy. A city’s voting delegate and up to two alternates must be designated by the City Council either by submitting a Voting Delegate form signed by the City Clerk affirming that the names provided are those selected by the city council. Public Engagement This is an administrative item, so no formal public engagement was done. Members of the public can provide comment at the Council meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. Item 12 Packet Page 153 FISCAL IMPACT Budgeted: Yes Budget Year: FY20-21 Funding Identified: Fiscal Analysis: Financial resources have been budgeted in the 2020 – 2021 budget for Council Member attendance at the League of California Cities Annual Conference. Item 12 Packet Page 154 Department Name: Parks and Recreation Cost Center: 7003 For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Avakian, Director of Parks and Recreation Prepared By: Meghan Burger, Recreation Supervisor Aleah Bergam, Administrative Analyst SUBJECT: AUTHORIZATION TO UPDATE THE CITY’S MASTER FEE SCHEDULE TO ADD A CHILDCARE FEE ASSOCIATED WITH PROVIDING CHILDCARE DURING SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT’S (SLCUSD) PERIOD OF DISTANCE LEARNING RECOMMENDATION Adopt a Resolution (Attachment A) updating the City’s Master Fee Schedule, as follows: 1. Add the hourly rate for City childcare at $4.44 per hour to be charged in association with providing full and/or part time childcare during a State of Health Emergency. The following package options may be offered depending upon guidance from the State and County: i. Full Time: $200/week (Monday – Friday, 8 am – 5 pm) ii. 2-Day Option: (Tuesday, Thursday, 8 am – 5 pm) iii. 3-Day Option: (Monday, Wednesday, Friday 8 am-5 pm) iv. Half Day Program: (Monday – Friday approximately 8 am – 12 pm or 1 pm - 5 pm) REPORT-IN-BRIEF Childcare in 2020 – Part of the City’s META Goal for Economic Recovery This report presents a summary of the planning efforts conducted by the City’s Youth Services Program to provide childcare to San Luis Obispo school children during the Fall 2020 term. The Council adopted META Goal for Economic Recovery includes childcare as part of the strategic objectives. On July 16, 2020, San Luis Coastal Unified School District (SLCUSD) announced that Fall 2020 will be distanced learning, consistent with State of California’s directives, resulting in an increased need for full-day childcare. Historically, in non-COVID-19 times, the City has provided before (less than an hour early drop off) and after school childcare to school aged children who are enrolled in TK-6th grade at five City school sites. This recommended action assumes that distance learning will be in effect through the end of December 2020. This report does not contemplate plans beyond calendar year 2020 as not enough is known at this time and staff will return to Council as more information becomes available and experience is gained from providing this extended service. Item 13 Packet Page 155 Staff recommends a fee of $4.44 per hour for childcare in a State of Health Emergency. Staff also is also proposing to allocate $43,000 in funding received from CAPSLO and SLCUSD facility savings (in existing Parks and Recreation Operating Budget) to be used as a scholarship fund. DISCUSSION Background 1. State and County Guidelines for Providing Childcare. Staff’s planning efforts for the modified program and fees are based on adhering to published allowable group sizes, which requires a staff to child ratio of 1:14 and a recommended 6-foot distancing at all times. The City must follow both State and County guidelines, which includes Community Care State Licensing, during this health emergency. 2. Utilize the City operated Summer Camp model for basis of fall programming. The City successfully ran a seven -week Summer Camp, full days, serving over 60 campers per week at three camp sites, from June 15 – July 31, in compliance with CDC regulations for childcare and summer camps. Based on CDC regulations for childcare, childcare programs will continue to run at a limited capacity and require additional space to accommodate children, as well as increased staff hours to manage the sanitization and safety of the site. 3. SLCUSD Announces Distance Learning on July 16, 2020. In partnership with SLCUSD, the quarterly facility usage fees of $14,200 has been waived during the temporary distanced learning period and SLCUSD has agreed to provide additional room space at several City school sites for the City’s Youth Services Program. 4. Community Outreach. The City administered a survey on July 22, 2020 to past and current childcare users, as well as SLCUSD families (who perhaps were not previous users). 449 families responded. Of those, 298 families indicated a need for childcare in the fall (some with multiple children), and 196 families requested full-time care (defined as Monday-Friday 8 a.m. to 5 p.m.). Additional families indicated a need for specific days or a half -day option. 5. Prioritizing essential workers. As part of the childcare needs survey/initial sign-up, families are asked if they are essential workers. While in pre-COVID-19 times, programs were available on a first-come, first-served basis, during this health crisis, City staff will prioritize spots for self - identified essential workers. Youth Services staff will prepare to make spots available in Phase 2 for families in need, named by SLCUSD principals. 6. Hours of Operation and Location. At the writing of this report staff anticipated only running full-time care, however families seem to be equally in need of part-time care and so it is likely that the City will run both full-time and half-day programs starting in September 2020, with the first session in August being strictly full-time care. Item 13 Packet Page 156 7. Enrollment and Selection. In order to provide the most equitable access to limited childcare spots, the City used a lottery system to assign spaces. On August 1, 2020, staff used a random number generator to pick names from the lottery list. Essential workers were given top priority. As of the completion of this report, there were 400 children in the lottery system with 136 children offered spots (all from essential worker homes). Proposed Program Overview – The “Bubble” Approach Under Best Case Scenario Using a “Bubble” approach, City staff has planned to initially open three sites (Phase 1) and consider expanding to a fourth site or expanding rooms at the original three sites (based on SLCUSD facility availability) to increase capacity (Phase 2), should staff resources be available. Notably, hiring is anticipated to be a challenge based on the summer camp experience, State licensing requirements, and distance learning by Cal Poly and Cuesta Community College. Because of those challenges, staff is pursuing a phased approach. Training and safety requirements are time intensive. Table 1: Program Overview Bubble Approach Following a 1 staff to 14 children ratio approach per room (3-4 rooms per school site). *Staff will overlap, ensuring there are often 2 staff in the room to ensure social distancing and maintain sanitization standards, as well as work with SLCUSD staff to support the rigorous academic demands. Dates and Hours Phase 1 Mon-Fri: 8:00 am – 5:00 pm Phase 2 Will add more rooms or a fourth site and at that time evaluate possibility of a Half-Day and/or a 2 or 3-Day per Week option if the demand is great enough. Registration and Fees Weekly Rate: $200, based on an hourly rate of $4.44 Families may request a payment plan to pay by the week, although registration will span a three to four-week period, depending on the month. Facilities CL Smith Elementary: 42 children; Sinsheimer Elementary: 48 children. Bishop’s Peak Elementary: 46 children; Phase 2 add a classroom at each site - TBD children served TBD Who Would it Serve? School Age children, Grades TK-6 Safety Protocols to be followed (CDC Guidelines) Include, but not limited to: • Check-in station for families with temperature checks and health screening questionnaire conducted by “Safety Monitor” • Social and family groupings procedures • 1:14 ratio per classroom, per State regulation • Sanitization of rooms and playground equipment in between class uses • Segregation of outdoor space by room • On Site “Safety Monitor” doing hourly cleanings of all rooms, equipment, restrooms, etc. • Sanitization station for toys that have been used • Hourly hand washing of participants • Staff wear masks throughout the day (awaiting updated information on Item 13 Packet Page 157 requirements for children) • Assigned seating area for meals • Snack provided as pre-packaged only • Procedures in place for COVID positive staff or participants, in compliance with Public Health and CDC recommendations. Changes to the Approved Master Fee Schedule Staff recommends establishing a reduced hourly rate for City run childcare during distanced learning from the currently adopted $5.25 to $4.44. Both rates would be approved by Council. During distanced learning, if childcare can be provided at school district sites the following childcare package options could be made available, again dependent upon State and County health orders and staffing availability. 1. Full Time: $200/week (Monday – Friday, 8 am – 5 pm) 2. 2-Day A Week Option: (Tuesday, Thursday, 8 am – 5 pm) 3. 3-Day A Week Option: (Monday, Wednesday, Friday 8 am – 5 pm) 4. Half-Day Program: (Monday – Friday 8 am – 12 pm or 1 pm - 5 pm) Based on analysis and comparable rates of other agencies providing similar services, staff believe this rate to be fair to support working families impacted by the SLCUSD distance learning school notification. The YMCA is offering similar programming in San Luis Obispo and is charging $175 per week. The City of Arroyo Grande is offering similar programming and is charging between $175-$195 per week. If the City charged the current $5.25 hourly rate, the City would recover more than 100% of the program costs and so staff recommends reducing the hourly rate from $5.25 to $4.44. The reduced hourly rate proposed assumes that Council supports continued subsidy to the staffing and operating costs of this Youth Services program consistent with the adopt ed Fiscal Policies for the 2019-21 Financial Plan at High Cost Recovery (60% - 100%). Recognizing that the additional cost of childcare (paying for 45 hours of care per week as opposed to 15 per week) will financially impact some users, staff has allocated $43,000 of CAPSLO payments and SLCUSD facility savings to use as a scholarship fund. In addition, SLCUSD will support families in need through the Community Foundation. Finally, the City continues its partnership with CAPSLO-Child Care Resource Connection, which permits qualified families to use City childcare without paying upfront for services (City staff bills CAPSLO-CCRC on their behalf). Policy Context The budget policy for cost recovery for Recreation Programs is located in the 2019-2021 Financial Plan (Page 475), and reads as follows: Item 13 Packet Page 158 Childcare services are deemed a High-Range Cost Recovery service at (60% - 100%). Public Engagement Since the original childcare program closure in March (when normal school year registration occurs), staff has communicated with past and potential users via email, website, and social media updates regarding a shift in programming and delay in registration awaiting decisions from SLCUSD. Staff continues to attend SLCUSD public forums, have direct contact with administrators, and share best methods for staying current on information. On July 22, 2020, a survey and original lottery sign up was to all Parks and Recreation childcare users, past and present, as well as to families at six school sites. The SLCUSD Superintendent’s weekly newsletters have also provided information about need for childcare as local families navigate distance learning. CONCURRENCE The City’s Finance Department concurs with the recommendation. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2020-2021 Funding Identified: Yes Item 13 Packet Page 159 Fiscal Analysis: Funding Sources Total Budget Available* Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $997,873 State Federal Fees Other: Total To run youth services programming during the SLCUSD distance learning announcement (August 2020 - December 2020) will require an additional $126,043 in staffing budget compared to the budget allocated to run normal before and after school programming. The projected increase in revenue for this time period is a maximum of $215,460 and assumes fully attended (as projected) and fully paid for by attendees. Two variables which create uncertainty in cost recovery include: scholarship need and attendance (could be varied due to impacts of COVID on students). Additionally, most other Parks and Recreation Programs and other General Fund revenues are limited potentially creating cash flow impacts to the General Fund hence the business need for increased revenues and the policy direction to not fully subsidize this program. The revenue projections are calculated at 100% capacity. See Table 2 and Table 3 below with the original and adjusted expenditure and revenue budgets. Table 2: Youth Services FY 20-21 Adopted Expenditure Budget Original FY 20-21 Budget Adjusted FY 20-21 Budget (*only increased program costs for Aug-Dec 2020) Change Staffing $855,543 $981,586 $126,043 Operating $142,330 $142,330 $0 Total Budget $997,873 $1,123,916 $126,043 Table 3: Youth Services FY 20-21 Adopted Revenue Budget Original FY 20-21 Budget Adjusted FY 20-21 Budget (*modified programming Aug- Dec 2020) Change Revenue $549,040 $764,500 $215,46 Cost Recovery 55% 68% Item 13 Packet Page 160 Note that the cost recovery for the original FY 20-21 Budget is lower than the High Cost Recovery policy (60%-100%) approved by Council for childcare services; this is due to program uncertainties surrounding COVID-19. Staff adjusted revenue budgets down to account for no summer programming to maintain a conservative revenue budget. Staff was able to run summer programming and will present adjusted revenue assumption with the October budget revision. The adjustment will correct the cost recovery to approved levels. Notably a Summer Program was held though for only 7 weeks and about half the number of students of a normal year. ALTERNATIVES 1. Council could decide not to authorize proposed new fee. This alternative is not recommended because the City would have to charge the current hourly rate which is higher than the proposed fee and could be a barrier to families in need. 2. Council could request a modification to the new fees. This alternative is not recommended because the fees were calculated based off cost recovery goals and other local childcare provider rates. Attachments: a - Draft Resolution Item 13 Packet Page 161 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING NEW FEES AND AMENDING THE 2020-21 MASTER FEE SCHEDULE WHEREAS, Section 2 of the City’s 2019-21 Financial Plan, titled “User Fee Cost Recovery Goals” defines the level of cost of services for the various City services; and WHEREAS, Section 2(G) of the City’s 2019-21 Financial Plan provides that cost recovery for Recreation Programs directed to youth and seniors should be relatively low. In those circumstances where services are similar to those provided in the private sector, cost recovery levels should be higher; and WHEREAS, Section 2(G) of the City’s 2019-21 Financial Plan set cost recovery goals for child care services at High-Range Cost Recovery (60%-100%); and WHEREAS, on June 2, 2020, the City Council approved the City’s Master Fee Schedule listing all applicable service fee levels for fiscal year 2020-21; and WHEREAS, San Luis Coastal Unified School District (SLCUSD) announced on July 16, 2020 that Fall 2020 schooling would commence via distance learning due to COVID-19; and WHEREAS, over 300 working families have requested childcare during the months of August – December 2020; and WHEREAS, the City will provide modified childcare programming to kids from 8:00 a.m. – 5:00 p.m., an expansion of before and after care; and WHEREAS, the City has not previously provided a full day childcare program during the school year and as such a full-time care rate did not exist; and WHEREAS, the standard school year hourly rate is based off of the program premise of before and after school care, and families are used to paying for 14 hours of care opposed to 45 hours of care per week; and WHEREAS, the ability to provide childcare during the SLCUSD distance learning period supports the economic recovery of the City, supporting the benefit to providing care at a lower hourly rate while maintaining the cost recovery policy goals approved by Council in the City’s current Financial Plan; and WHEREAS, the Master Fee Schedule will be updated to reflect all new fees becoming effective July 1, 2020. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Item 13 Packet Page 162 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 1. The Parks and Recreation Department will begin charging fees for Childcare during a State of Health Emergency as set forth in Exhibit A to this Resolution. These fees will be adjusted annually between any Cost of Services study with the Consumer Price Index Los Angeles/Riverside. Upon motion of Council Member _____________, seconded by Council Member ______________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ____________________________________ Teresa Purrington City Clerk Item 13 Packet Page 163 Resolution No. _____ (2020 Series) Page 3 R ______ Exhibit A New Fees Parks and Recreation Fees Fee Description FY 2020-21 Rate Youth Services State of Health Emergency Childcare Fee Hourly $4.44 Weekly $200 2-Day Option (Tuesday, Thursday) $80/week 3-Day Option (Monday, Wednesday, Friday) $120/week Half Day Option (Mon-Friday 8am -12 pm or 1pm – 5pm) $100/week Item 13 Packet Page 164 Department Name: Administration Cost Center: 1001 For Agenda of: August 18, 2020 Placement: Consent Estimated Time: N/A FROM: Derek Johnson, City Manager Prepared By: Victoria Tonikian, Interim Executive Assistant to the City Manager / Fiscal Officer SUBJECT: AUTHORIZATION TO AMEND THE CURRENT CONTRACT FOR CHANGE MANAGEMENT AND ECONOMIC RECOVERY TO INCLUDE PROJECT MANAGEMENT AND EXPERTISE RELATED TO DIVERSITY, EQUITY, AND INCLUSION RECOMMENDATION Authorize the City Manager to execute a contract amendment (Attachment A) in the amount of $76,025 with Catalyst Consulting to support facilitation and support services as it is related to the Diversity, Equity, and Inclusion Task Force (DEI -TF). DISCUSSION In 2019 the City embarked on a multi-phased project to achieve an organizational structure to best position the City to efficiently meet the needs of its community into the future; and allow for both effective and efficient governance and operational innovation. To facilitate an efficient and effective reorganization and “creation” of a highly functional Community Services Group – transitional resources were obtained through a one-year contract with Catalyst Consulting for services focused on organizational change management. In May of 2020, the contract with Catalyst Consulting was authorized for extension to the end of June 30, 2021 and an additional service focused on the Meta Goal of Economic Recovery and Resiliency and Fiscal Health Contingency was added to the scope of services the current contract (Attachment B) includes the services of: 1. Economic Recovery 2. Change Management – Community Services Department 3. Change Management, Adoption & Support 4. Option Generation 5. Implementation 6. On-Going Assessment & Support In addition to the services listed above, it is the recommendation of staff to amend the current contract with Catalyst Consulting to include project management, advising and consultation in relation to the creation and goals of the DEI-TF. Item 14 Packet Page 165 Background At the July 7, 2020 City Council meeting, the City Council approved the creation of a Diversity, Equity, and Inclusion Task Force (DEI-TF) as part of a wider effort to help make the City an inclusive and safe community for everyone. The Task Force will be led by Mayor Harmon and Council Member Erica A. Stewart and will be comprised of a total of 11 to 13 members of the community. Appointments to the DEI-TF are scheduled to occur on September 1, 2020. The objectives (Attachment C) of the DEI-TF are to: 1. Support the work of DE&I Providers that support marginalized communities with directed funding for proven or promising impactful, sustainable projects. 2. A framework / potential scope for a 2021-23 DE&I-focused Major City Goal. 3. Provide a recommendation on the role and function of the Human Relations Commission in relation to DE&I efforts While staff assistance will be provided by the City Manager, a day-to-day project manager with particular knowledge, understanding, and expertise of the City and a DEI expert are both needed to ensure that the efforts of the Task Force are guided thoughtfully and through the lens of DEI while completing the objectives and outcomes of the Task Force. It is staff’s recommendation to amend the current contract with Catalyst Consulting due to the nature and immediate need of this project as a top priority for the City Council as well as the expertise Dale Magee and Beya Montero-Makekau can provide in this area. As highlighted in the proposed scope of services, (Attachment D) Dale McGree is a Prosci1-certified change practitioner and strategic planner, process designer, and professional facilitator; Beya Montero - Makekau is the Interim Director of Student Affairs for Diversity & Inclusion at Cal Poly San Luis Obispo and has extensive experience as an inclusivity consultant. Scope of Services Should the contract with Catalyst Consulting be amended to include the additional scope of services, the City will retain both Dale Magee and Beya Montero-Makekau to consult throughout the end of June 2021. While initially staff estimated needing to only contract with an inclusivity consultant, after reviewing the scope and level of support needed by the Task Force, it became quickly clear that the effort required more time than the City Manager had available and that a project manager is required to manage the effort and ensure that the level and quality of work is meeting the priority level set forth by the City Council. 1 Certification in the knowledge, skills and tools to drive successful change initiatives—no matter how complex or urgent. Item 14 Packet Page 166 Project Management As highlighted in Attachment D, Dale Magee of Catalyst Consulting is the proposed consultant for Project Management. Under the direction of the City Manager, Dale will serve as the lead coordinator for the DEI-TF. Dale’s role in the projects will vary as needed for specific activities. Examples of specific roles include advisor, lead, facilitator , planner, or supporting position. Dale has extensive expertise and knowledge of City departments and organizational structure which will aid in the implementation of the DEI-TF’s goals in a timely and thorough manner. DEI Expertise As highlighted in Attachment D, Beya Montero-Makekau will be retained as a sub-contractor for Catalyst Consulting to provide subject matter expertise, advising, and consultation. Beya is the Interim Director of Student Affairs for Diversity & Inclusion at Cal Poly San Luis Obi spo. Beya will serve as a member of the selection committee for the DEI -TF members, aid in facilitation and content development of a share understanding/focus of equity and inclusion as it relates to Task Force Responsibility. Additionally, Beya will lead the development of the Notice of Funding Availability (NOFA), serve as a subject matter expert and provide recommendations to the City as they pertain to advancing diversity, equity and inclusion throughout the community. Previous Council or Advisory Body Action At the July 7, 2020 City Council meeting, the Council approved the creation of a Diversity, Equity, and Inclusion Task Force as part of a wider effort to help make the City an inclusive and safe community for everyone. The creation of the DEI -TF highlighted the priority of the City Council to commit resources to advancing diversity, equity and inclusion throughout the City of San Luis Obispo. Policy Context The City’s purchasing policy designates professional work provided to the City by specially trained and experienced individuals or firms regarding economic, financial, engineering, planning, architectural, environmental, legal or administrative matters as Consulting Services. For contracts with a total cost greater than $100,000, approval is required by the City Council in the form of a Council Agenda Report. Because existing services are being augmented and the total work by Catalyst Consulting will exceed $100.000, this contract is being brought to the Council for review. Public Engagement No public engagement was conducted as this is considered to be an administrative item, however, extensive public engagement will be done through the work of the DEI -TF. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. Item 14 Packet Page 167 FISCAL IMPACT Budgeted: Yes Budget Year: 2020-21 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund - DEI $160,000 $40,000 $120,000 N/A General Fund – V&C $175,842 $36,025 $139,817 N/A State Federal Fees Other: Total $335,842 $76,025 $259,817 N/A During the adoption of the 2019-21 Financial Plan Supplement and 2020-21 Budget, the City Council allocated a total of $160,000 towards the advancement of Diversity, Equity, and Inclusion in the City of San Luis Obispo. This proposal recommends utilizing $40,000 of that budget to fund the diversity expertise required to assist the task force. The remining $36,025 for project management is recommended to be funded through available Ventures and Contingency funds. ALTERNATIVES 1. Do not move forward with amending the contract with Catalyst Consulting and instead have staff complete the proposed Scope of Services. This is not advised as there are numerous competing priorities of the City Manager which will provide difficult to ensure that the quality of work that is expected will be completed within the approved timeline. 2. Do not move forward with amending the contract with Catalyst Consulting and instead select a different consultant to complete this work. This is not advised as Catalyst Consulting provides two expert consultants with ties and experience within the City of San Luis Obispo and the greater community. 3. Do not utilize the recommended funding sources to fund this contract amendment . This is not advised as this specific task was not budgeted during the budget supplement. Staff has concluded an analysis of various funding sources and believes the recommended funding sources to be the most appropriate. Item 14 Packet Page 168 Attachments: a - Catalyst Consulting Contract Amendment b - Catalyst Consulting Contract Agreement dated 05/28/2020 c - Diversity, Equity, and Inclusion Task Force Overview d - Catalyst Consulting Proposed Scope of Work Item 14 Packet Page 169 AMENDMENT TO AGREEMENT NO. 2 THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on _______________by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and Catalyst Consulting, hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on 5/14/2019 the City entered into an Agreement with Contractor for change management consulting services; and WHEREAS, on 5/28/2020 the City amended Agreement No. 1 to extend the contract term for a period of one year concluding on 6/30/2021; and WHEREAS, the City and Contractor desires to amend the agreement to include an additional scope of services as it pertains to project management and diversity expertise and Contractor has submitted a proposal for this purpose that is acceptable to the City. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. The agreement is hereby amended as set forth in Exhibit A attached hereto. 2. All other terms and conditions of the Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. ATTEST: CITY OF SAN LUIS OBISPO ____________________________________ By: ____________________________________ City Clerk Mayor APPROVED AS TO FORM: CONTRACTOR _____________________________________ By: ____________________________________ City Attorney Item 14 Packet Page 170 AMENDMENT TO AGREEMENT NO. 1 THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on ______________, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and Catalyst Consulting, hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on 5/14/2019 the City entered into an Agreement with Contractor for change management consulting services; and WHEREAS, the City and Contractor do hereby mutually agree to extend the contract term for a period of one year concluding on 6/30/2021 and Contractor has submitted a proposal for this purpose that is acceptable to the City. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1.The agreement is hereby amended to include the updated contract term to June 30, 2021, amended scope of work attached hereto as exhibit A, and updated standard terms and conditions (Attachment A to the original agreement), attached hereto as exhibit B. 2.All other terms and conditions of the Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. CITY OF SAN LUIS OBISPO By: ____________________________________ City Manager APPROVED AS TO FORM: CONTRACTOR _____________________________________ By: ____________________________________ City Attorney Item 14 Packet Page 171 P.O. Box 324  Santa Margarita, CA 93453  805.440.8588  Info@CatalystConsulting.biz PROPOSAL for SERVICE AGREEMENT EXTENSION from CATALYST CONSULTING SCOPE of WORK Change Management Facilitation Economic Recovery Support Submitted May 29, 2020 Client l Project City of San Luis Obispo l Organization of the Future Project Timeline: July 1, 2020 – June 30, 2021 Services Provided: Under direction of Assistant City Manager (“Sponsor”), Dale Magee (“Consultant”) will serve as change management facilitator for the Organization of the Future (“Project”), with focus on supporting economic recovery efforts in response to the COVID-19 pandemic. Consultant is a Prosci-certified change practitioner and proven strategic planner; role in the project will vary as needed for specific activities - advisor, lead, co-facilitator, planner, or supporting position. Activities to include: 1)Economic Recovery. Assist in the implementation of the Road Map to Recovery plan and the execution of the strategies and objectives. Strategic support to the City Manager, the Assistant City Manager, and the Economic Recovery Branch. Create and administer business and community-input processes (surveys, interviews, virtual focus groups). 2)Change Management – Community Services Department. Facilitate planning within and between Community Services departments as they refocus priorities and processes, and implement economic recovery practices. Assist in designing organization changes. Provide coaching and recommendations to leadership and teams. 3)Change Management, Adoption & Support – Employees. Facilitate employee outreach and input activities to increase awareness and understanding of the City’s economic recovery priorities, and gather information to create an optimal organization functions and models. Provide proven activities to strengthen adoption of new organization structures and operations. 4)Option Generation. Support Sponsor in developing reorganization and operating models that are centered on achieving the City’s meta-goal and designing an optimized Community Services Department. 5)Implementation. Assist in implementation and integration of the changes. 6)On-Going Assessment & Support. Maintain contact with Stakeholders throughout Project’s lifespan to ensure understanding, input, early troubleshooting, and desired outcomes. EXHIBIT A Item 14 Packet Page 172 P.O. Box 324  Santa Margarita, CA 93453  805.440.8588  Info@CatalystConsulting.biz Fee: • $85/hour, plus materials beyond common office supplies (e.g. meeting supplies, photocopying large volume of documents, print and presentation materials, etc.). • Not to exceed 1,040 total hours between July 1, 2019 – June 30, 2021. Additional hours require Sponsor’s consent and revised service contract. • Mileage to San Luis Obispo City offices included. Mileage to other locations will be charged at $0.58/mile. Final services and terms will be determined after client’s review and any requested adjustments. Thank you for the opportunity to continue this work with the City of San Luis Obispo. Item 14 Packet Page 173 EXHIBIT B GENERAL TERMS AND CONDITIONS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section E of the City’s Request for Proposal referenced in paragraph 2 of the Agreement, unless changes are otherwise approved and agreed to in writing between the parties. If the Agreement is entered into outside of a Request for Proposal, Contractor shall provide proof of insurance in the form in the form coverages and amounts specified in Exhibit B 2. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license & tax certificate before execution of the contract. Additional information regarding the City’s business tax program may be obtained by calling (805) 781-7134. 3. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with all federal, state, county, city, and special district laws, ordinances, and regulations. 4. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 5. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 6. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 7. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 8. Public and Employee Safety. Whenever the Contractor’s operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 9. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor’s operations, it shall be replaced or restored at the Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 10. Immigration Act of 1986. The Contractor warrants on behalf of itself and all Item 14 Packet Page 174 subcontractors engaged for the performance of this work that only persons authorized to work in the United State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 11. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 12. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City’s sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 13. Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Contractor (Net 30). 14. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done, and all materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 15. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 16. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 17. Hold Harmless and Indemnification. (a) Non-design, non-construction Professional Services: To the fullest extent permitted by Item 14 Packet Page 175 law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant Item 14 Packet Page 176 under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance. 18. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 19. Termination for Convenience. The City may terminate all or part of this Agreement for any or no reason at any time by giving 30 days written notice to Contractor. Should the City terminate this Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price; (b) for custom products, the less of a reasonable price for the raw materials, components work in progress and any finished units on hand or the price per unit reflected on this Agreement. For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected on this Agreement. Upon termination notice from the City, Contractor must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. 20. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor’s surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the terminations thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in Item 14 Packet Page 177 the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City’s assessment of the value of the work-in-progress in completing the overall work scope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. Item 14 Packet Page 178 1 CITY of SAN LUIS OBISPO DE&I TASK FORCE OVERVIEW Approved by Council July 7, 2020 Timeline dates revised 07.10.20 Background This Council action stems from the work that began in June 2019, and is propelled by increased xenophobia, the Black Lives Matter protests, and the problems of systemic racism suffered by many, in many forms. We acknowledge that biases also adversely affect other marginalized groups in SLO. This Task Force is a commitment by the City to take local action on these longstanding problems by making recommendations to the City Council as outlined in this charter. Vision We envision a San Luis Obispo that is welcoming, inclusive, and safe. Our city values diversity, promotes equity and belonging, actively denounces systemic racism and discrimination, and actively works toward racial justice. Charter Advance diversity, equity, and inclusion (DE&I) in San Luis Obispo by engaging community leaders and change agents to: 1) Focus on activities that support marginalized racial, ethnic, and cultural groups. 2) Collect information and insight about advancing DE&I in San Luis Obispo. 3) Develop a notice of funding availability (NOFA) to support the DE&I work of proven organizations and best practices for change. 4) Provide guidance and a foundation for creating a 21-23 DE&I-focused Major City Goal. 5) Strengthen the focus and role of the City’s Human Relations Commission (HRC) to support the City’s vision. Outcomes 1) Support the work of DE&I Providers that support marginalized communities with directed funding for proven or promising impactful, sustainable projects. 2) A framework / potential scope for a 21-23 DE&I-focused Major City Goal. 3) Provide a recommendation on the role and function of the HRC in relation to DE&I efforts. Guiding SUPPORT DE&I efforts and organizations that support marginalized communities; Principles the City is not a subject matter expert. Research should incorporate work and input already done in this region and not burden people from unnecessarily retelling their stories and lived experiences. Community members and organizations can provide critical expertise and play a vital role in terms of leadership and give perspectives to fund systemic change in diversity, equity, and inclusion. COMMIT our resources to support efforts that have the potential for the highest impact. We acknowledge that MEANINGFUL and SUSTAINABLE change will happen over time; the City will support radical incrementalism for the long-term. FLEXIBILITY is needed; the initial charter may be modified in response to what is learned and to maximize impact. Item 14 Packet Page 179 2 Approach A Task Force of approximately 9-13 members with diverse community and organization representation, and varied perspectives, will work with City leadership to: 1) Further understand DE&I issues and what people are experiencing in SLO. Learn what is happening, what people are experiencing, how to be more inclusive, and how to make improvements towards a sense of welcoming and belonging. Understand issues, concerns, what’s missing, and what’s desired. 2) Determine target areas and priorities - the needs and gaps that the City should and could begin to address and improve, in partnership or otherwise support through funding. 3) Oversee a grant process focused on targeted areas and priorities. Create a NOFA, and administer the application and award-selection process. 4) Assist City staff in developing a scope of work for DE&I Major City Goal for 21- 23 Financial Plan. Proposed July 7, 2020 City Council Review and Authorization Timeline July 8 – Aug 3, 2020 Task Force recruitment Discovery - Learn needs, gaps, strengths Begin drafting NOFA Aug 11 – Aug 26, 2020 Interviews for Task Force members Aug 27, 2020 Applicants notified Sept 1, 2020 Member recommendations to City Council for approval Sept 3 – Nov 5, 2020 Task Force convenings Discovery continued; Learning sessions Determine target areas, priorities, areas City can most impact Finalize NOFA (grant application) Sept 14 – Oct 22, 2020 Release NOFA Oct 23 – Nov 5, 2020 Review grant applications; make selections Nov 17, 2020 Grantee recommendations to City Council Funds awarded Dec 3 – Jan 7, 2020 Major City Goal and HRC recommendations Task Force term is complete, unless extended by City Council For more information, please email Administration at DEI@SLOCity.org Item 14 Packet Page 180 3 1.Confirm Task Force Purpose •Task Force Development Committee [Mayor Heidi Harmon, Councilwoman Erica Stewart, Derek Johnson, project facilitator Dale Magee] clarifies purpose, end goals, process, expections, etc. •Focus: Racial, ethnic, cultural inequity and injustice •To Council for approval July 7, 2020 2. NOFA Creation •Grants could be used for small -medium -large efforts, short term -medium term -long term projects; and a variety of approaches. •Adopt "best fit" criteria: intersection of need x resources x impact •Administration to release NOFA 3. Discovery •Explore lived experiences, needs, gaps, and best way the City can help advance DE&I in the City of SLO •Glean expertise and recommendations from Task Force members & survey •Convene "listen and learn" sessions -various groups/indiviudals present to the Task Force (ex: 30 min presentations, focus on need and best way to help) 4. Findings, Determine Focus Areas •Task Force reviews input, information learned •Determine priority populations and impact areas -e.g. welcome, inclusion, belonging, equity, awareness, allyship -to fund 5. Proposal Review, Selection •Task Force and support review NOFA. Seek providers to address the identified needs and priorities •Potential option: partner w Community Foundation to adminster the process. Task Force members as the grant committee •Select grantees/awards; Grantees recommended to City Council 2. Recruit Task Force Members •City Clerk to oversee the recruitment process •Seeking members with expertise and/or lived experience, can help City understand the gaps/needs •Obtain recommendations for members from those in the field •Applicants recommended to City Council by Mayor, Councilmember Erica A. Stewart and a third party 5. Track Progress •Task Force reviews progress from grantees •Evaluate overall impact of the funding 6. HRC & MCG •Task Force & Staff develop Major City Goal for 21-23 (concurrent to work above) •Recommendations for the HRC Item 14 Packet Page 181 P.O. Box 324  Santa Margarita, CA 93453  805.440.8588  Info@CatalystConsulting.biz CATALYST CONSULTING PROPOSAL for ADDITIONAL SERVICES to CURRENT SCOPE of WORK July 30, 2020 Current Services: Change Management Facilitation Economic Recovery Support Added Services: DE&I Task Force - Coordination DE&I Task Force – Advising & Consultation Client l Project City of San Luis Obispo Project Timeline: July 1, 2020 – June 30, 2021 Services Provided: 01.Under direction of Assistant City Manager (“Sponsor”), Dale Magee (“Consultant”) will serve as change management facilitator for the Organization of the Future (“Project”), with focus on supporting economic recovery efforts in response to the COVID-19 pandemic. 02.Under direction of City Manager (“Executive Sponsor”), Dale Magee (“Consultant”) will serve as coordinator for the DE&I Task Force. Consultant will retain services of sub-contractor Beya Montero-Makekau (“SME”) to provide subject matter expertise, advising and consultation to the Task Force and City Leadership. Consultant is a Prosci-certified change practitioner and proven strategic planner, process designer, and professional facilitator. Role in the projects will vary as needed for specific activities - advisor, lead, facilitator, planner, or supporting position. SME is the interim director of Student Affairs for Diversity & Inclusion at Cal Poly San Luis Obispo. Activities to include: 1)Economic Recovery. Assist in the implementation of the Road Map to Recovery plan and the execution of the strategies and objectives. Strategic support to the City Manager, the Assistant City Manager, and the Economic Recovery Branch. Create and administer business and community-input processes (surveys, interviews, virtual focus groups). 2)Change Management – Community Services Department. Facilitate planning within and between Community Services departments as they refocus priorities and processes, and implement economic recovery practices. Assist in designing organization changes. Provide coaching and recommendations to leadership and teams. Item 14 Packet Page 182 P.O. Box 324  Santa Margarita, CA 93453  805.440.8588  Info@CatalystConsulting.biz 3)Change Management, Adoption & Support – Employees. Facilitate employee outreach and input activities to increase awareness and understanding of the City’s economic recovery priorities, and gather information to create an optimal organization functions and models. Provide proven activities to strengthen adoption of new organization structures and operations. 4)Option Generation. Support Sponsor in developing reorganization and operating models that are centered on achieving the City’s meta-goal and designing an optimized Community Services Department. 5)Implementation. Assist in implementation and integration of the changes. 6)On-Going Assessment & Support. Maintain contact with Stakeholders throughout Project’s lifespan to ensure understanding, input, early troubleshooting, and desired outcomes. 7)DE&I Task Force. a.Dale Magee: Develop the design and operational structure of the Task Force. Plan and coordinate activities of the Task Force. b.Beya Montero-Makekau: Serve as expert advisor and consultant to the Task Force. Full scope of work is enclosed, Attachment A. Fee: Dale Magee •$85/hour, plus materials beyond common office supplies (e.g. meeting supplies, photocopying large volume of documents, print and presentation materials, etc.) •Not to exceed 1,405 hours between July 1, 2019 – June 30, 2021 (net increase of 365 hours from current Service Agreement) •Additional hours require Sponsors’ consent and revised service contract •Mileage to San Luis Obispo City offices included. Mileage to other locations will be charged at $0.58/mile Beya Montero-Makekau •$125/hour •Not to exceed 360 hours ($45,000 total) •Additional hours require Sponsor’s consent and revised service contract Total Fee Increase to Service Agreement: $76,025 •$31,025 – Fee, Dale Magee •$45,000 – Fee, Beya Montero-Makekau •25% of fee increase to be paid at acceptance of this revision; net 30 •10% of fee to be retained until end of projects and submission of deliverables Final services and terms will be determined after client’s review and any requested adjustments. Thank you for the opportunity to continue this work with the City of San Luis Obispo. Item 14 Packet Page 183 2020 / 2 1 DEI TASK FORCE PROPOSAL THE CITY OF SAN LUIS OBISPO Mayor Heidi Harmon, Erica Stewart, Derek Johnson, Dale Magee Prepa red For P : 916-239-8952 E : mcmonter@calpoly.edu Beya Montero-Makekau Prepared By Attachment AItem 14 Packet Page 184 PROPOSAL 2020 / 21 2 PROJECT OBJECTIVE Advance diversity, equity, and inclusion (DE&I) in San Luis Obispo by engaging community leaders and change agents to: 1) Focus on activities that support marginalized racial, ethnic, and cultural groups. 2) Collect information and insight about advancing DE&I in San Luis Obispo. 3) Develop a notice of funding availability (NOFA) to support the DE&I work 4) Strengthen the focus and role of the City’s Human Relations Commission (HRC) PROPOSED SERVICES In serving as the project “advisor”, Beya Makekau will serve as a member of the selection committee for the DEI task force members. The advisor will aid in the facilitation and content development of a shared understanding/focus of equity and inclusion as it relates to this project and task force responsibilities. Additionally, the advisor will lead the development of the NOFA, serve as subject matter expert and lead discussions with the task force, assist in grant recipient selection, and provide recommendations to City DELIVERABLES Below is a list of deliverables to be completed by the “advisor”: • Task Force (TF) Member selection – participate in the review of applications, interview, final selection. • NOFA development. • Serve as subject matter expert and advisor to the TF- co-create meeting agendas, lead meeting topics, develop curriculum, recruit guest speakers, support mission, level set knowledge related to equity and best practices.". • Assist in grant recipient selections. • Provide advice and consultation during and in between meetings to TF and City leadership in addition to the Major City Goal. Below is a breakdown of the project objective, proposed services, project dates, and deliverables. Each section maps out the shared understanding of the scope of this project and the role of the consultant/advisor. PROPOSAL DETAILS PROJECT DATES August 03 2020 through June 16th 2021 This project has the potential for follow up action in the form of additional consultation and survey development. In the event that is requested a revision of this proposal would be required. Attachment AItem 14 Packet Page 185 PROPOSAL 2020 / 21 3 PROPOSAL COST BREAKDOWN 01. TASK FORCE & NOFA DEVELOPMENT 02. TASK FORCE FACILITATION & MEETING DEVELOPMENT 03. CONSULTING 20-25 hours reviewing applicants for DEI Task Force 08/03 - 08/07 $125/hr 10-15 hours per week for TF meetings and NOFA developments 08/31- 01/08 **19 WEEKS TOTAL Additional 10-15 hours for grant applicant review during the week of 8/26 10-15 hours for HRC review, and additional project consulting/development $125/hr TOTAL: TOTAL $38,000.00 - $60,625 TOTAL: $25,000 – $37,500 $125/hr $125/hr TOTAL: $6,250 - $7,500 10-15 hours Task Force interviews and NOFA research 08/10 - 8/14 W 20 hours NOFA development & Task Force prep 08/17 - 8/28 W $125/hr $125/hr Beya Makekau will manage time and costs as to not exceed the total project range. If unanticipated activities or changes arise, Beya Makekau will work with client to determine best approach moving forward. Final services and terms will be determined after client’s review and adjustment. Thank you for this opportunity to work with City leadership on advancing diversity, equity, and inclusion initiatives in San Luis Obispo. 2-5 hours a week for consultation and review as it relates to the Major City Goal 01/15 – 06/16 **22 WEEKS TOTAL ** If the project exceeds maximum hours listed per the client’s request, the ongoing rate per hour would be $125/hr and the City would work with consultant to provide additional resources. $6,750 - $15,625 $125/hr Attachment AItem 14 Packet Page 186 Department Name: Administration Cost Center: 1005 For Agenda of: August 18, 2020 Placement: Public Hearing Estimated Time: 60 Minutes FROM: Greg Hermann, Deputy City Manager Michael Codron, Community Development Director Prepared By: Chris Read, Sustainability Manager Robert Hill, Sustainability & Natural Resources Official Teresa McClish, Special Projects Manager SUBJECT: ADOPTION OF THE 2020 CLIMATE ACTION PLAN FOR COMMUNITY RECOVERY RECOMMENDATION As recommended by the Planning Commission and Active Transportation Committee, adopt a Resolution (Attachment A) to: 1. Adopt an Initial Study/Negative Declaration (Attachment B); and 2. Approve the Climate Action Plan for Community Recovery (Attachments C-G) including the California Environmental Quality Act (CEQA) Greenhouse Gas (GHG) Emissions Thresholds and Guidance (Attachment G). REPORT-IN-BRIEF The Climate Action Plan for Community Recovery (2020 Climate Action Plan) is the 2020 update to San Luis Obispo’s 2012 Climate Action Plan. The update is about addressing greenhouse gas emissions; it is also about supporting a more equitable and resilient community. Addressing climate change presents the City and community with an opportunity to use resources more effectively, improve community equity and well-being, and support an economy that is set to recover from the impacts of COVID-19 and thrive in a rapidly changing 21st century. Many of the actions in the 2020 Climate Action Plan are geared towards supporting local jobs, enhancing access to downtown and other areas of commerce and recreation, improving indoor and outdoor air quality, and reducing utility bills for residents and building owners. As a result, the plan will play an integral role in the City’s recovery from the impacts of COVID-19 and will help provide for a cleaner, healthier, and safer San Luis Obispo. The 2020 Climate Action Plan builds on the successes of the 2012 Climate Action Plan and includes the City Council’s ambitious target to pursue a community-wide goal of carbon neutrality by 2035. The plan establishes a trajectory towards carbon neutrality through six decarbonization pillars each with a long-term goal and foundational actions to be initiated or completed by 2023. Item 15 Packet Page 187 The sector specific goals are as follows: 1. Carbon neutral government operations by 2030 2. 100 percent carbon free electricity by 2020 3. No net new building emissions from onsite energy use by 2020; 50 percent reduction in existing onsite building emissions (after accounting for MBCP) by 2030 4. Achieve General Plan mode split objective by 2030 and 40 percent of vehicle miles travelled by electric vehicles by 2030 5. 75 percent diversion of landfilled organic waste by 2025; 90 percent diversion by 2035 6. Increase carbon sequestration on the San Luis Obispo Greenbelt and Urban Forest through compost application-based carbon farming activities and tree planting; ongoing through 2035 At full implementation, the foundational actions in the 2020 Climate Action Plan will contribute substantial progress towards the carbon neutrality goal and achieve GHG reductions of 45 percent below 1990 levels by 2030 and 66 percent below 1990 levels by 2035. These reductions are consistent with California’s goal of reducing GHG emissions to 40 percent below 1990 levels (Senate Bill 32) by 2030 and are on a course to achieve California’s carbon neutrality by 2045 goal (Executive Order B-55-18). The 2020 Climate Action Plan will be considered “qualified” as a plan for the reduction of greenhouse gases consistent with CEQA Guidelines and will be used for tiering and streamlining the analysis of GHG emissions in subsequent CEQA project evaluation. The GHG Thresholds and Guidance document provides methodological guidance, including qualitative analysis for streamlining purposes, and quantitative thresholds of significance for use by City planners, applicants, consultants, agencies, and members of the public in the preparation of GHG emissions analyses under CEQA for plans and projects located within the City of San Luis Obispo. The 2020 Climate Action Plan and the GHG Thresholds and Guidance document have been reviewed in accordance with CEQA, and an Initial Study/Negative Declaration has been prepared and is proposed for adoption (Attachment B). The Initial Study/Negative Declaration concludes that implementation of the 2020 Climate Action Plan and GHG thresholds of significance will result in no potentially significant impacts on the environment. It should be noted that even with achievement of the ambitious, but achievable, targets outlined in the 2020 Climate Action Plan, the City still expects an emissions gap that will need to be addressed to achieve carbon neutrality. As a result, the 2020 Climate Action Plan includes a mechanism to regularly be updated in alignment with every other Financial Plan. This allows for certainty in the update schedule, ensures that carbon neutrality work is directly tied to the City’s financial decision making and prioritization process, and allows for constant integration of learning and best practices into the City’s climate action program. To truly achieve deep decarbonization, the City will need to embrace uncertainty, engage in systemic change using the tools and actions that local governments are uniquely suited to carry out, and position itself to take full advantage of future innovations, technologies, funding, policies, and legislation that may be undertaken at the state and federal level. Item 15 Packet Page 188 DISCUSSION Background San Luis Obispo residents and businesses routinely rank climate change as an important issue. In 2019, thousands of people in San Luis Obispo contributed to the City’s budget process that resulted in City Council adopting Climate Action as a Major City Goal for the second straight Financial Plan cycle. As community and Council prioritization of ambitious climate action continues, the update of the City’s Climate Action Plan provides a platform for strategic prioritization of actions, as well as an opportunity to incorporate a wide range of community member’s feedback and suggestions for a low carbon and thriving San Luis Obispo. In July 2012, the City Council adopted by resolution the City of San Luis Obispo’s first Climate Action Plan with objectives and strategies to achieve the adopted GHG emissions reduction target of 15 percent below 2005 baseline levels by 2020.1 Although final data required for verification will not be available until after 2020, based on reasonable assumptions, staff expects that as of January 1, 2020, the City has successfully achieved this target. In 2018, City Council identified Climate Action as a Major City Goal and included updating the Climate Action Plan as a key work task for the second consecutive Financial Plan. In September of 2018, staff presented an update on the Climate Action Plan process to Council with a request for goal setting direction.2 At that meeting, Council directed staff to update the Climate Action Plan to articulate a pathway to carbon neutrality by 2035. In December of 2019, staff presented an update to Council with another request for goal setting direction. City staff worked closely with technical consultants, peer cities, stakeholders, and community members to create an approach to carbon neutrality. At full implementation, the proposed approach will leave an emissions gap that will need to be addressed to reach total carbon neutrality. With this in mind, Council directed staff to continue articulating a pathway to carbon neutrality by 2035 and to update the Climate Action Plan every four years to allow opportunity for new best practices and technologies to address this remaining emissions gap.3 In March 2020, the City declared a local emergency due to the COVID-19 pandemic and approved a supplemental budget focused on economic recovery. In addition to presenting serious public health concerns, the COVID-19 pandemic has significantly impacted San Luis Obispo’s local economy. 1 Resolution 10388 (2012 Series) is available at : http://opengov.slocity.org/WebLink/DocView.aspx?id=5991&dbid=0&repo=CityClerk 2 The September 18, 2018 Council Agenda Report is available at: http://opengov.slocity.org/WebLink/DocView.aspx?id=83887&dbid=0&repo=CityClerk. The meeting minutes are available at: http://opengov.slocity.org/WebLink/DocView.aspx?id=85817&dbid=0&repo=CityClerk. 3 The December 3, 2019 Council Agenda Report is available at: http://opengov.slocity.org/WebLink/DocView.aspx?id=100362&dbid=0&repo=CityClerk. The meeting minutes are available at: http://opengov.slocity.org/WebLink/DocView.aspx?id=103905&dbid=0&repo=CityClerk. Item 15 Packet Page 189 Leading economists4 and governments ranging from individual cities5 to groups as large as the European Union6 believe that COVID-19 recovery focused on creating a low carbon economy can provide enduring economic benefit, address issues of health and equity, and enable communities to thrive in a rapidly changing world.7 In accordance, while the 2020 Climate Action Plan is about addressing greenhouse gas emissions, it is also about supporting a more equitable and resilient community. Addressing climate change presents the City and community with an opportunity to use resources more effectively, improve community equity and well- being, and support an economy that is set to recover from the impacts of COVID-19 and thrive in a rapidly changing 21st century. For example, many of the actions in the 2020 Climate Action Plan are geared towards supporting local jobs, enhancing access to downtown and other areas of commerce and recreation, improving air quality8, and reducing utility bills for residents and building owners. As a result, the plan will play an integral role in the City’s recovery from the impacts of COVID-19 and will help provide for a cleaner, healthier, and safer San Luis Obispo. Climate Action Plan for Community Recovery The 2020 Climate Action Plan has two parts – Volume 1: Stories from 2035; and Volume 2: Technical Foundation and Work Program. Volume 1 is an innovative and engaging collection of short stories connecting readers to tangible outcomes and quality of life improvements as a result of the work included in Volume 2: Technical Foundation and Work Program. Volume 2 provides overarching policy direction and foundational actions to achieve a communitywide GHG emissions output of 196,180 MTCO2e per year by 2030 (consistent with California Senate Bill 32 target for 2030) and make progress towards the City’s aspirational goal of achieving carbon neutrality by 2035 (exceeding the California Executive Order B-55-18 target of carbon neutrality of 2045). While the plan is centered around reducing community greenhouse gas emissions, it also focuses on using resources more effectively, improving community equity and well-being, and developing an economy that is set to recover from the impacts of COVID-19 and thrive in a rapidly changing 21st century. 4 For example, see: Hepburn, C., O’Callaghan, B., Stern, N., Stiglitz, J., and Zenghelis, D. (2020), ‘Will COVID-19 fiscal recovery packages accelerate or retard progress on climate change?’, Smith School Working Paper 20-02. Retrieved from: https://www.smithschool.ox.ac.uk/publications/wpapers/workingpaper20-02.pdf 5 For example, over 30 mayors recently pledged to focusing COVID Recovery on health, equity, and sustainability. See: https://www.c40.org/press_releases/taskforce-principles 6 For example, see: https://www.reuters.com/article/us-health-coronavirus-eu-climate/eu-green- recoveryto-target-buildings-clean-power-hydrogen-draft-idUSKBN22W2TO and https://www.forbes.com/sites/davidrvetter/2020/04/13/use-lessons-of-covid-19-to-build-a-green- recoverysay-eu-ministers/#68dd906a4335 7 Pinner, D., Rogers, M., and Samandari, H. 2020. Addressing climate change in a post -pandemic world. Retrieved from https://www.mckinsey.com/business-functions/sustainability/our- insights/addressingclimate-change-in-a-post-pandemic-world 8 For example, a Rocky Mountain Institute literature review report provides substantial evidence linking onsite natural gas combustion with poor indoor air quality and public health impacts. See: https://rmi.org/insight/gas-stoves-pollution-health Item 15 Packet Page 190 The plan was developed with input from the San Luis Obispo community through outreach events and activities designed to empower residents, stakeholders, city staff, and decision- makers. Through the update process, the following lessons learned from local implementation and global best practices have guided the development of the 2020 Climate Action Plan: 1. Systems are responsible for the climate crisis. Transformative change to a low carbon, equitable, and sustainable community requires changes to the systems in which a community functions. 2. The climate crisis and social equity must be addressed together. Low greenhouse gas emissions, equity, and resilience are the organizing principles required for communities to thrive in the 21st century. 3. Organizations are uniquely capable of certain actions. For structural change to occur, local governments should focus on their unique capabilities and responsibilities while partnering with and empowering other agencies and organizations to focus on their unique capabilities. 4. Leadership is needed and the world is watching. Our community’s leadership is influencing how cities throughout the world are addressing their greenhouse gas emissions. Staff are active participants in a regional, statewide, national and international networks of cities; many of which are watching us closely to see what is possible. 5. Climate action is a path forward for enduring community recovery. Approaching climate action with a focus on public health and economic development allows local governments to strategically tackle two concurrent crises: climate change and the COVID-19 pandemic. Volume 1: Stories from 2035 Volume 1 of the 2020 Climate Action Plan includes six short stories told from various perspectives capturing moments of daily life in San Luis Obispo in 2035 (Attachment C). These stories, compiled from the nearly 90 short stories submitted by community members, show what is possible if the City implements the bold actions included in the plan. It is designed and written with the intent of being a highly digestible, accessible, and inspirational summary document to be released widely to the public that creatively highlights positive potential community outcomes associated with each of the plan’s foundational actions. For example, Morning with the Kids (Figure 1) shares a brief glimpse into the life of a mother spending a weekend morning with her children. The story notes, “Even though the electric buses (2) have been around for a few years, I am still not used to how quiet they are.” – highlighting “electric buses” and linking it to Connected Community action 4.1. In Volume 1 of the 2020 Climate Action Plan, readers are able to see themselves in a vision of a carbon neutral San Luis Obispo 15 years from now, and understand how the foundational actions included in the plan will make the city a more enjoyable, safer, more equitable place to live, work, and play. Volume 1 creatively highlights each of the 27 actions outlined in Volume 2 and directs readers to where they can find more information. Item 15 Packet Page 191 Figure 1. Volume 1 Story Example Volume 2: Technical Foundation and Work Program Volume 2 outlines a strategic roadmap to carbon neutrality including the technical foundation supporting the roadmap and the work program to implement it (Attachment D). This document provides details on 27 foundational actions to be initiated or implemented in the next three years and the modeled emissions reductions that are expected to result if those actions are successfully implemented. The actions are organized into six pillars, each of which includes long-term emissions reductions goals for 2030 and 2035. The pillars and goals are: • Pillar 1: Lead by Example – Carbon neutral government operations by 2030; Municipal Action Plan by July 2021 • Pillar 2: Clean Energy Systems –100 percent carbon free electricity by 2020 • Pillar 3: Green Buildings – No net new building emissions from onsite energy use by 2020; 50 percent reduction in existing onsite building emissions (after accounting for MBCP) by 2030 • Pillar 4: Connected Community – Achieve General Plan mode split objective by 2030; 40 percent of vehicle miles travelled by electric vehicles by 2030 • Pillar 5: Circular Economy – 75 percent diversion of landfilled organic waste by 2025; 90 percent diversion by 2035 • Pillar 6: Natural Solutions – Increase carbon sequestration on the San Luis Obispo Greenbelt and Urban Forest through compost application-based carbon farming activities and tree planting; ongoing through 2035 Item 15 Packet Page 192 Volume 2 also provides details on GHG reduction estimates, funding and financing options, equity considerations, economic development considerations, case studies, and tracking mechanisms for each action. Taken together, the six pillars and their actions are expected to reduce community greenhouse gas emissions by approximately 45 percent below 1990 levels by 2030 and 66 percent below 1990 levels by 2035, with a remaining emissions gap of 111,030 MTCO2e (Figure 2). Figure 2. Greenhouse Gas Emissions Reductions by Pillar (Annual MTCO2e in 2035) The total emissions reductions that can be achieved across the six pillars show the massive potential for the City to reduce local greenhouse gas emissions, while recovering from the economic impacts of COVID 19 and creating a healthier, cleaner, and more connected community. The 2020 Climate Action Plan acknowledges that additional actions beyond those identified in the plan will be necessary to achieve carbon neutrality and, therefore, provides a mechanism for regular updates to the Climate Action Plan connected to the biennial financial plan cycle to ensure budget resources are applied as necessary to close the gap and accomplish the target. Three appendices are included in the 2020 Climate Action Plan. Appendix A, Greenhouse Gas Inventory and Forecast, provides the methods and data used to calculate the greenhouse gas emissions inventories and forecasts used in the plan (included in this Council Agenda Report as Attachment E). Appendix B, Reduction Measure Quantification, provides the methods and data used to estimate the greenhouse gas emissions reductions expected to occur as the result of plan implementation (included in this Council Agenda Report as Attachment F). Item 15 Packet Page 193 Appendix C provides CEQA GHG Thresholds and Guidance, as described below and included in this Council Agenda Report as Attachment G. CEQA GHG Thresholds and Guidance To support progress toward the City’s long-term carbon neutrality goal, plans and projects within the City that undergo CEQA review will need to demonstrate consistency with targets in the 2020 Climate Action Plan. In 2007, SB 97 acknowledged that climate change is an environmental issue that requires analysis in CEQA documents, and in 2010, the California Natural Resources Agency adopted amendments to the State CEQA Guidelines for the feasible mitigation of GHG emissions or the effects of GHG emissions. The adopted guidelines give lead agencies the discretion to set quantitative or qualitative thresholds for the assessment and mitigation of GHGs and climate change impacts. Specifically, Section 15183.5(b)(1)A-F of Title 14 of the California Code of Regulations was amended to state that a qualified GHG Reduction Plan, or a Climate Action Plan, may be used for tiering and streamlining the analysis of GHG emissions in subsequent CEQA project evaluation, provided that the GHG Reduction Plan or Climate Action Plan does the following: • Quantifies GHG emissions both existing and projected over a specific period of time, resulting from activities within a defined geographical area • Establishes a level, based on substantial evidence, below which the contribution to greenhouse gas emissions from activities covered by the plan would not be cumulatively considerable • Identifies and analyzes the GHG emissions resulting from specific actions or categories of actions anticipated within the geographic area • Specifies measures or a group of measures, including performance standards, that substantial evidence demonstrates, if implemented on a project-by-project basis, would collectively achieve the specified emissions level • Establishes a mechanism to monitor the plan's progress toward achieving the level and to require amendment if the plan is not achieving specified levels • Be adopted in a public process following environmental review. The City’s CEQA GHG Thresholds and Guidance document has been prepared to provide methodological guidance and quantitative thresholds of significance for use in CEQA review of development projects (Attachment G). Within the document, a Consistency Checklist (Checklist) has been prepared as permitted by CEQA Guidelines Section 15183.5 to facilitate a streamlined review process for proposed discretionary development projects that trigger environmental review. Projects that demonstrate consistency with the Checklist allow the City to remain on track to achieve GHG reductions goals, and therefore qualify for a reduced level of GHG emissions analysis than would otherwise be required by CEQA. The Checklist is an administrative document that may be separately updated by the City to include new GHG reduction measures or to comply with later amendments to the 2020 Climate Action Plan. Item 15 Packet Page 194 Projects that cannot show consistency with the Checklist will be required to prepare a separate more detailed project-level GHG emissions analysis as part of their CEQA document. For this purpose, quantitative efficiency thresholds have been developed for use in evaluating whether a plan’s or project’s GHG emissions would result in a potentially significant environmental impact under CEQA for plans or projects with pre-2030 buildout or initial operation years. These CEQA GHG emissions thresholds would be applied to plans or projects that cannot tier from the environmental analysis for the City’s 2020 Climate Action Plan due to one of the following circumstances, which are illustrated in Figure 3: • The plan or project would not be consistent with the 2014 General Plan land use and zoning designations for the project site and would result in greater GHG emissions than existing on-site development; or • The plan or project would not be consistent with the CEQA GHG Emissions Analysis Compliance Checklist. Figure 3. Determining CEQA GHG Emissions Analysis Methodology Item 15 Packet Page 195 Administrative Actions In addition to foundational actions aimed at reducing community greenhouse gas emissions, the 2020 Climate Action Plan also includes a series of administrative actions: 1. Implement Climate Action Plan with an Equity Lens. The City commits to implementing the Climate Action Plan with an equity lens. Staff will continue to learn best practices and evolve and grow over time. As an initial commitment, every action implemented in the CAP that requires an internal project plan will also include an assessment of equity that includes a detailed description of how the project will incorporate: a. Representational equity – a focus on having diverse voices guide the project’s definition and implementation. b. Distributional equity – a focus on the costs and benefits of a project and how they are distributed to different demographics in the community. c. Generational equity - a focus on the costs and benefits of a project and how they are distributed to different demographics over time. d. Structural equity – a focus on how the project creates systems that reinforce representational, distributional, and generational equity after the project has been implemented. 2. Monitor and Report Plan Implementation. Using the “Tracking Progress” metrics and the work program provided in Volume 2, the City will develop a greenhouse gas emissions inventory update in every odd year and will develop a monitoring and reporting protocol and provide an update to City Council on progress every other year starting in the Summer of 2022. Consistent with Administrative Action 1, the City will also identify an approach to evaluate and report equity metrics related to Climate Action Plan implementation. 3. Regularly Update the Climate Action Plan. The City will update the Climate Action Plan for adoption in the Fall prior to every other Financial Plan. This allows for certainty in the update schedule, ensures that carbon neutrality work is directly tied to the City’s financial decision making and prioritization process, and allows for constant integration of learning and best practices into the City’s climate action program. The update schedule is included as Figure 4. 4. Ensure Transparency by Reporting Greenhouse Gas and Climate Action Information to Public Disclosure Programs. Several state, national, and international disclosure platforms exist with the purpose of providing transparency and access to sustainability related information. The City will review available programs, such as the Carbon Disclosure Program and SEEC Clear Path, and report on the platforms that have no or minimal costs to participate in. 5. Develop Mitigation Program for New Development to Illustrate Consistency with the Climate Action Plan The City will coordinate with the San Luis Obispo Air Pollution Control District, 3C-REN, and regional resource conservation districts to identify and evaluate possible local and regional offset mitigation projects for new development to use to illustrate consistency with this Climate Action Plan. Item 15 Packet Page 196 Figure 4. Climate Action Plan Update Schedule Public Engagement Public input, community engagement, and local capacity building are essential components of the 2020 Climate Action Plan. City staff identified, created, and expanded numerous opportunities for meaningful community input in developing a path towards carbon neutrality in San Luis Obispo. The events and activities were designed to empower a variety of residents, stakeholders, City staff, and decision-makers through the creation and adoption of the 2020 Climate Action Plan, including those who are typically not engaged and traditionally under- represented in planning processes. The public engagement strategy for the 2020 Climate Action Plan consists of a combination of online, formal focus group, informal pop-up, and internal and external presentation activities to maximize opportunities for feedback and ensure that input reflects the diverse interests of the wider San Luis Obispo community. 1. Outreach Events • City Council Meetings, including the 2018 and 2019 Study Sessions where Council directed staff to pursue carbon neutrality by 2035 • Climate Solution Speaker Series, hosted in partnership with the SLO Climate Coalition • Community Workshops and Open Houses, including the 2019 Open House which showcased the proposed approach to carbon neutrality and invited attendees to provide feedback on foundational actions • Community Meetings, including the Business Roundtable Meeting and the Community Collaboration for Climate Action Meeting • Tabling Events, including pop-ups at Farmers Markets and at various storefront locations to collect short stories for Volume 1 of the 2020 Climate Action Plan • Online Outreach, ranging from Open City Hall forums to social media posts The outreach process engaged over 1,000 community members and dozens of community organizations and businesses. Chapter 2 of Volume 2 provides additional detail about community outreach process, including outreach objectives and individual event descriptions. Staff will continue to conduct community engagement throughout the implementation phase of the plan with a focus on expanding participation to non-traditional stakeholders. Item 15 Packet Page 197 Public Review Draft The Public Review Draft of The City of San Luis Obispo Climate Action Plan for Community Recovery was released on June 22, 2020 and available for public review through July 22, 2020. An Open City Hall survey was released in tandem with the public review draft to collect community feedback on the document. The survey prompted participants to review the documents and attachments of the Climate Action Plan for Community Recovery. A notice of the survey was sent to all those who are on the City’s email list at the time it published. The introduction of the survey encouraged participants to provide feedback whether they had time or interest in reviewing all of the attached documents or just a select Volume. The activity had 30 participants. In total, including Open City Hall responses, letters, and emails, staff received 43 comments covering 87 topics. Comments were archived by topic area, and longer comments were broken down into multiple comment rows based on individual topic. Public comments and responses to them are included in Attachment I. CONCURRENCE On July 8, 2020, the Planning Commission unanimously recommended adoption of the Negative Declaration and approval of the Action Plan, titled Climate Action Plan for Community Recovery, including the CEQA GHG Thresholds and Guidance as consistent with the General Plan (Attachment H). Included in the Commissions review was consistency of the proposed 2020 Climate Action Plan with the City’s General Plan. The Commission had three specific suggestions for the 2020 Climate Action plan – all of which have been incorporated in the plan as described in Attachment I. On July 16, 2020, the Active Transportation Committee (ATC) reviewed the Climate Action Plan for Community Recovery and support the adoption of the plan. The ATC had several suggestions for the plan as outlined an Attachment I. The City also received comment letters from the San Luis Obispo Council of Governments and San Luis Obispo Air Pollution Control Districts supporting the City’s 2020 Climate Action Plan. Public Works, Utilities, and Community Development have contributed to and concur with this report. ENVIRONMENTAL REVIEW An Initial Study was prepared Pursuant to CEQA, (EID 0275-2020) by Rincon Consultants to evaluate the potential significant effects of implementing the Climate Action Plan and CEQA GHG Thresholds Guidance (Attachment B). The Initial Study identifies several areas where “Less Than Significant” impacts have the potential to occur and concludes that implementation of the Climate Action Plan and GHG thresholds of significance would not result in potentially significant impacts on the environment. A Negative Declaration is therefore recommended for adoption in accordance with CEQA Guidelines Section 15063 (b)(2) “The lead agency shall prepare a Negative Declaration is there is no substantial evidence that a project or any or its aspects may cause a significant effect on the environment”. A thirty (30) day public comment period opened on June 22, 2020 and closed on July 22, 2020. A Notice of Completion and Notice of Intent to Adopt were filed with the County-Clerk Recorder and with the State Clearinghouse. Item 15 Packet Page 198 FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Total $0 $0 $0 No funds are requested at this time. The work program for the 2020 Climate Action Plan update is included in Table 4.1 in Volume 2 and includes each foundational action with associated schedule estimates and identified actions that are included in the FY 2019-2021 Financial Plan. Some foundational actions within the 2020 Climate action plan, that are consistent with the economic recovery meta goal will begin implementation in Fiscal Year 2021 and will be completed with existing and budgeted staff resources from Administration, Community Development, Public Works and Utilities, as well as the CivicSpark program through the Local Government Commission, grant resources through SB2 funding, and partnership resources including Monterey Bay Community Power (MBCP), PG&E, SoCal Gas and 3C-REN. Some foundational actions that are budgeted as part of the 2109-21 Climate Action Major City Goal work plan, but not prioritized as part of the Economic Recovery Meta Goal, have been deferred and will be delayed at least one year from what was originally proposed in the December 2019 City Council Study Session. This includes work program tasks such as the adoption of the municipal carbon neutrality plan, carbon farm plan and pilot program, and urban forest master plan. These deferral dates and related quantification assumptions are incorporated into the 2020 Climate Action Plan for Community Recovery. Additional impacts on staff’s time related to their role as Disaster Service Workers as a result of the COVID-19 pandemic will also constrain implementation. Costs for implementing foundational actions in FY 2021-2023 will be developed for the 2021-23 Financial Plan and will include capacity and funding from staff resources, grants, and community partnerships. ALTERNATIVES 1. Council could request more information, suggest substantial changes, or otherwise request that the 2020 Climate Action Plan be presented for adoption at a later date. 2. Council could take no action and direct staff to pursue other initiatives. Item 15 Packet Page 199 Attachments: a - Draft Resolution b - COUNCIL READING FILE - CEQA Initial Study / Negative Declaration c - COUNCIL READING FILE - Climate Action Plan - Volume 1 d - COUNCIL READING FILE - Climate Action Plan - Volume 2 e - COUNCIL READING FILE - CAP Appendix A - GHG Inventory and Forecast f - COUNCIL READING FILE - CAP Appendix B - Reduction Measure Quantification g - COUNCIL READING FILE - CAP Appendix C - CEQA GHG Thresholds, Guidance, and Checklist h - Planning Commission Resolution i - Response to Public Review Comments Item 15 Packet Page 200 R _____ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE CLIMATE ACTION PLAN FOR COMMUNITY RECOVERY AND ASSOCIATED CALIFORNIA ENVIRONMENTAL QUALITY ACT GREENHOUSE GAS EMISSION THRESHOLDS AND GUIDANCE INCLUDING A NEGATIVE DECLARATION OF ENVIRONMENTAL REVIEW (EID 0275-2020) WHEREAS, greenhouse gas accumulation in the atmosphere as the result of human activity is the primary cause of the global climate crisis; and WHEREAS, in California alone, the initial impacts of climate change have resulted in unprecedented disasters with tremendous human, economic, and environmental costs; and WHEREAS, the Intergovernmental Panel on Climate Change estimates that global emissions need to be reduced by 45 percent from 2010 levels by 2030, and 100 percent by 2050 to prevent global catastrophe; and WHEREAS, the State of California enacted Senate Bill (SB) 32 to require greenhouse gas emissions to be reduced to 40 percent below 1990 levels by 2030 and Governor Brown issued Executive Order B-55-18 establishing a statewide target of carbon neutrality by 2045; and WHEREAS, City of San Luis Obispo residents and businesses have repeatedly identified climate action as a top community priority; and WHEREAS, the City of San Luis Obispo City Council has directed staff to evaluate strategies and options to achieve community-wide carbon neutrality by 2035; and WHEREAS, the COVID-19 Pandemic has created a public health and economic disasters; and WHEREAS, a low carbon, sustainability-oriented approach to economic development is widely believed to be a path forward for resiliency and community recovery; and WHEREAS, low greenhouse gas emissions, resilience and equity are required for communities to thrive in the 21st century; and WHEREAS, the City of San Luis Obispo City Council first adopted a Climate Action Plan (CAP) in 2012; and Item 15 Packet Page 201 Resolution No. ________ (2020 Series) Page 2 R _____ WHEREAS, the City has adopted a Major City Goal in response to the climate crises to continue to update and implement the Climate Action Plan for carbon neutrality, including preservation and enhancement of our open space and urban forest and planning for resilience; and WHEREAS, a 2020 update to the Climate Action Plan has been prepared and titled, Climate Action Plan for Community Recovery, that establishes a community-wide goal of carbon neutrality by 2035, adopts sector specific goals, and provides foundational actions to establish a trajectory towards achieving those goals; and WHEREAS, lead agencies may analyze and mitigate the significant effects of GHG emissions at a programmatic level, such as in a general plan, a long range development plan, or a separate plan to reduce GHG emissions as authorized in State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), section 15183.5(a); and WHEREAS, public agencies may choose to analyze and mitigate significant GHG emissions in a plan for the reduction of GHG emissions and such a plan may be used in a cumulative impacts analysis (State CEQA Guidelines, §15183(b)); and WHEREAS, section 15183(b)(1) of the State CEQA Guidelines states that a plan for the reduction of GHG should: a) Quantify GHG emissions, both existing and projected over a specified time period, resulting from activities within a specified area; b) Establish a level, based on substantial evidence, below which the contribution to greenhouse gas emissions from activities covered by the plan would not be cumulatively considerable; c) Identify and analyze the greenhouse gas emissions resulting from specific actions or categories of actions anticipated within the geographic area; d) Specify measures or a group of measures, including performance standards, that substantial evidence demonstrates, if implemented on a project-by-project basis, would collectively achieve the specified emissions level; e) Establish a mechanism to monitor the plan’s progress toward achieving the level and to require amendment if the plan is not achieving specified levels; f) Be adopted in a public process following environmental review; and WHEREAS, the Climate Action Plan for Community Recovery is a Qualified GHG Emissions Reduction Plan to reduce GHG emissions withing its jurisdictional boundary to meet and exceed state targets consistent with CEQA Guidelines Section 15183.5 for year 2030, and includes a California Environmental Quality Act (CEQA) Greenhouse Gas (GHG) Emissions Thresholds and Guidance; and WHEREAS, the CEQA GHG Emissions Threshold and Guidance includes a GHG Checklist that provides that plans and projects that are consistent with the demographic forecasts and land use assumptions used in the Climate Action Plan can utilize the checklist to demonstrate consistency with the Climate Action Plan’s GHG emissions reduction strategy, and if consistent, can tier from the existing programmatic environmental review contained in the adopted IS-ND for the Climate Action Plan; and Item 15 Packet Page 202 Resolution No. ________ (2020 Series) Page 3 R _____ WHEREAS, the GHG Checklist is an administrative document that may be separately updated by the City to include new GHG reduction measures or to comply with later amendments to the 2020 Climate Action Plan; and WHEREAS, the potential environmental impact of the Climate Action Plan for Community Recovery and CEQA GHG Emissions Thresholds and Guidance has been evaluated in accordance with the California Environmental Quality Act pursuant to an initial environmental study (EID 0275- 2020) and an Initial Study/Negative Declaration of environmental impact has been prepared and circulated for public review and comment period from June 22, 2020 to July 22, 2020; and WHEREAS, the Planning Commission, at the hearing on July 8, 2020, considered the Climate Action Plan for Community Recovery, including the GHG Emissions Thresholds and Guidance and proposed Initial Study/Negative Declaration and it’s consistency with the General Plan, and recommend approval; and WHEREAS, the Active Transportation Committee, at the meeting on July 16, 2020, reviewed the Climate Action Plan for Community Recovery and unanimously recommended approval of the plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The recitals set forth above are hereby adopted as the findings of the City in adopting the policies herein. SECTION 2. Environmental Review. The City Council has determined that the adoption of the proposed 2020 update to the City’s Climate Action Plan titled, Climate Action Plan for Community Recovery, including the CEQA GHG Thresholds and Guidance document will not create a substantial environmental effect as defined by the California Environmental Quality Act (“CEQA”) and hereby adopts the Negative Declaration and directs staff to prepare and file a Notice of Determination with the County Clerk within five working days of the execution of this Resolution and approval of the Project and with the Office of Planning and Research. SECTION 3. Greenhouse Gas Emissions Reduction Targets. The City Council adopts carbon neutrality by 2035 or sooner as its community greenhouse gas emissions reduction target. The City Council also adopts the following sector specific goals: 1. Carbon neutral government operations by 2030 2. 100 percent carbon free electricity by 2020 3. No net new building emissions from onsite energy use by 2020; 50 percent reduction in existing onsite building emissions (after accounting for MBCP) by 2030 4. Achieve General Plan mode split objective by 2030; 40 percent of vehicle miles travelled by electric vehicles by 2030 5. 75 percent diversion of landfilled organic waste by 2025; 90 percent diversion by 2035 6. Increase carbon sequestration on the San Luis Obispo Greenbelt and Urban Forest through compost application-based carbon farming activities and tree planting; ongoing through 2035 Item 15 Packet Page 203 Resolution No. ________ (2020 Series) Page 4 R _____ SECTION 4. Qualified GHG Reduction Plan. The City Council finds after due deliberation that the Climate Action Plan for Community Recovery will effectively serve as the City’s “qualified” greenhouse gas emissions reduction plan and be used for CEQA streamlining purposes consistent with CEQA Guidelines Section 15183.5(b)(1). SECTION 5. 2020 Climate Action Plan for Community Recovery. The City Council hereby approves the Climate Action Plan for Community Recovery including Volume 1, Volume 2, Technical Appendices, and the California Environmental Quality Act Greenhouse Gas Emissions Thresholds and Guidance document. Upon motion of Council Member _________________, seconded by Council Member ______________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. _____________________________________ Teresa Purrington City Clerk Item 15 Packet Page 204 Item 15 Packet Page 205 Item 15 Packet Page 206 Item 15 Packet Page 207 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 1 # Topic Comment Response 1 CEQA SLOCOG staff saw constant alignment between the Climate Action Plan and the 2019 RTP/SCS. Comment received. 2 CEQA Staff supports Connected Community 1.2 and suggests the City coordinate closely with other information-based services such as 511/Rideshare and 21 United Way to ensure traveler information is not siloed into a single app environment, but can be integrated with other systems to increase discoverability through existing trip planning tools. The City looks forward to coordinating with information-based services as suggested. 3 CEQA Along with incorporating the CAP foundational actions to the maximum extent feasible, how else should a project mitigate their impact if they are inconsistent with the CAP? Meaning is there any where else in the proposed document where mitigation measures are stated that projects can do? No menu of mitigation measures is included in the City’s CEQA GHG Thresholds Guidance Document. For plans and projects that are not able to demonstrate consistency with the City’s 2020 Climate Action Plan, a quantitative analysis will be required and evaluated using the numeric thresholds established in the City’s CEQA GHG Thresholds Guidance Document. Project specific mitigation may be applied to the project as necessary to reduce GHG emissions to achieve consistency with the threshold guidance. 4 CEQA On pg. A-14, text should be added to show how 80 percent of community VMT translates to GHG emissions This level of detail will be evaluated when the City conducts this 2018 inventory update, which will be completed in a collaborative partnership with MBCP and SLOACPD. 5 CEQA Will emissions be rerun using latest EMFAC model? The 2018 inventory will be initiated this Fall through support from MBCP and SLOAPCD. The inventories will be updated at this time with EMFAC2017. 6 CEQA Caltrans supports local development that is consistent with State planning priorities to promote equity, strengthen the economy, protect the environment, and promote public health and safety. Projects that support smart growth principles which include improvements to pedestrian bicycle, and transit infrastructure are supported by Caltrans and are consistent with our mission, vision, and goals. Comment received. 7 CEQA Effective July 2020, Caltrans will replace vehicle level of service (LOS) with vehicle miles traveled (VMT) as the primary metric for identifying transportation impacts from local development. Employing VMT as the metric of transportation impact Statewide will help to promote GHG emission reductions consistent with SB 375 and can be achieved through influencing on-the-ground development. On June 16, 2020 the City adopted a resolutions to replace Level of Service (LOS) with Vehicle Miles Traveled ( VMT) as the City’s performance measure for CEQA analysis of transportation impacts and approve revisions to the City’s Multimodal Transportation Impact Study Guidelines. Item 15 Packet Page 208 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 2 # Topic Comment Response 8 Circular Economy Isn’t the key equity consideration here that rate increases for solid waste service will adversely affect lower income people? Revised language for Circular Economy 1.1 to include equity considerations due to potential rate increases. 9 Circular Economy Add specifics on enforcement of green waste bin requirement. The plan for the green waste bin requirement is still in development. When released, it will include specifics on enforcement. 10 Circular Economy To promote a circular economy, could subsidy for restaurants buying local produce be implemented? This CAP is focused on green waste diversion. The City plans to explore other policies and programs to support and incentivize supply chain localization in future CAP updates. 11 Circular Economy The City should put a sticker or signage on each trash can to help promote the goals of reducing misplaced waste. The Utilities Department is currently developing a waste stream education program. This comment will be passed on to the Utilities Department. 12 Circular Economy I would like to propose more action that will make SLO a true leader and inspiration for the rest of the Central Coast on stopping the use of single-use disposable plastics that are sourced from fossil fuels. SLO City website does not show that we have a Zero Waste Plan, and neither does the CAP. SLO is already implementing major plastic waste savings measures that should be noted, including: 1) City Polystyrene Ordinance, 2) Beverage Straws Upon Request, and the 3) Single-Use Bottles/Cups Regulation. This CAP focuses on diversion of green waste. The City plans to explore policies and programs to divert single-use plastics and highlight previously adopted waste diversion measures in future CAP updates. 13 Circular Economy The City should develop a Zero Waste Mandate like the City of Mountain View. This CAP focuses on foundational actions that support green waste diversion. The City could explore a Zero Waste Mandate along with other ordinances and programs that further support the diversion of green waste in future CAP updates. 14 Circular Economy I recommend SLO create its own Single-Use food ware and Litter Reduction Ordinance, like the City of Berkeley, Malibu, and Manhattan Beach. This CAP focuses on foundational actions that support green waste diversion. The City could explore a Single-Use food ware and Litter Reduction Ordinance along with other ordinances and programs that further support the diversion of green waste in future CAP updates. Item 15 Packet Page 209 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 3 # Topic Comment Response 15 Circular Economy Solid Waste Plan should include installation of recycling containers within all urban parks. This CAP focuses on foundational actions that support green waste diversion. The City could explore programs and policies to enhance citywide recycling in future CAP updates. This comment will be passed onto the Utilities Department. 16 Circular Economy The effort to reduce organic landfill waste is great and composting is sorely needed in our community. Comment received. 17 Circular Economy The idea of citywide composting is good. Comment received. 18 Circular Economy If solid waste emissions are a concern, update the poultry ordinance. This CAP is focused on green waste diversion. The City plans to explore other policies and programs that reduce greenhouse gas emissions from the solid waste sector in future CAP updates. 19 Circular Economy City should address limited processing power at our current recycling facility. This CAP focuses on green waste diversion. The Utilities Department is responsible for facilitating the residential and commercial recycling program in San Luis Obispo in partnership with the Integrated Waste Management Authority (IWMA). IWMA is a joint government entity that oversees and manages recycling in San Luis Obispo county. This comment will be passed along to the Utilities Department and IWMA. Item 15 Packet Page 210 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 4 # Topic Comment Response 20 Circular Economy Concerns that these actions won't impact global climate change and will come at a cost to residents. Natural Solutions actions and edible food recovery are some of the only things with true local benefits. The foundational actions in the Climate Action Plan are intended to be an investment in a local and regional economy that create high quality jobs and directly address issues of equity and environmental justice. Foundational actions in the Natural Solutions and Circular Economy pillar, along with all other pillars, were developed to achieve deep emissions reduction with maximum local benefit. 21 Circular Economy Should step up on waste stream education, consider partnering with this local Instagram account: https://www.instagram.com/canirecyclethis_slo/. As mentioned in the Circular Economy pillar, the City's Utilities department is currently developing a waste stream education program. The City will explore opportunities to connect and collaborate with community partners on climate education. 22 Circular Economy It is disappointing to see that the plan does not have goals to decrease single use plastic and increase recycling of plastics other than the two Circular Economy actions. Hopefully measures will be stricter in the future. This plan is focused on reducing green waste in the landfill that generates methane emissions, however the recycling of plastics is also important. This could be an area of focus in the next climate action plan. 23 Clean Energy Systems City shouldn't just fall back on MBCP for clean energy, but explore local renewable generation and storage options. The City is currently working with MBCP staff to develop a pathway for the organization to have not just carbon free, but one hundred percent renewable electricity (with a focus on regional projects) by 2030. 24 Clean Energy Systems Existing SoCalGas programs focused on reducing residential and building emissions provide opportunities to partner with the City to pursue and enhance emissions reductions from the gas systems, including enhancing energy efficiency offerings, exploring opportunities for hydrogen technologies, and partnering with Cal Poly and other schools to educate and support renewable energy programs and projects. The City looks forward to collaborating with SoCalGas on the aforementioned projects to support emissions reductions on the existing natural gas grid. 25 Clean Energy Systems Joining Monterey Bay Community power is a win-win for the City and residents. Comment received. Item 15 Packet Page 211 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 5 # Topic Comment Response 26 Community Engagement When electric and low-carbon transit is rolled out, City should invest resources and time in education campaigns to show community members that it's safe, reliable, and normal to use. The City plans to work with organizations such as the Climate Coalition to develop and complete educational campaigns for Climate Action Plan implementation. 27 Community Engagement Emphasized the need for continued public education on climate action even after the update is adopted Continued climate education is built into several implementation actions including the building retrofit program, waste stream education program, update to City standards for solid waste and the carbon farming study and pilot project. Additionally, the recently initiated climate vulnerability assessment will provide substantial opportunities for community climate education. 28 Community Engagement City government could care less what citizens think. The creation of the 2020 Climate Action Plan was driven by strong community support for climate action, and community engagement was an integral part of the development process. The plan was informed by over 1,000 community members and dozens of organizations and businesses. The City strongly values community input, and community members are invited to contact Sustainability Manager Chris Read at cread@slocity.org to share any questions, comments or concerns. 29 Community Engagement This ambitious plan will require a lot of community meetings to "sell" it; hope that the community sees the opportunities. Thinking outside of the box for solutions is critical. Community engagement has been a critical throughout the development of the plan, and the City intends to continue hosting events and conducting online and in-person outreach through the implementation process and beyond. Item 15 Packet Page 212 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 6 # Topic Comment Response 30 Connected Community Is a tripling of the percentage of transit trips over the next 10 years realistic in a post-Covid-19 environment? Transportation emissions projections are uncertain given the rapid expected changes in the transportation sector over the next decade. This uncertainty is even more pronounced in the COVID present and post-COVID world. The quantification provided is one path that shows substantial evidence that the GHG reduction targets can be achieved. As you point out, there are other paths to achieving the targets. To get to the specifics of your question, ridership has rapidly grown as SLO Transit has developed agreements with local and regional institutions (e.g., Cal Poly). The suite of actions in the CAP (Connected 1.1, 1.2, 4.2, 4.3, and 4.4) focused on simplifying access to Transit, simplifying ways that new development can support transit headways and system expansion, and continuing improvements to the transit system are expected to continue these ridership and related mode share increases. The way we deal with the uncertainty mentioned above is, Administrative Action 1 and Administrative Action 2, which provide for monitoring and reporting protocols and regular CAP updates. We will continue to learn and update assumptions accordingly. Item 15 Packet Page 213 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 7 # Topic Comment Response 31 Connected Community Tracking and Reporting Mode Split Metrics. It seems like translating the number of trips into VMT is critical, as there is a big difference between a bicycle trip length of a few blocks and a few miles. Do we have a good way to estimate VMT, not just number of trips? VMT is the ideal metric and is the one we use in our quantitative analysis (Attachment B). We are constrained currently to mode split by trips since that is the standing General Plan policy metric and is what has traditionally been collected by Public Works. That said, the City maintains a transportation demand model that generates VMT and we were able to work with our consultants for the CAP to generate a reasonable estimate for VMT based on trip types. Of note, we excluded all trips that began or ended outside of the community from any calculations that involved our mode split objectives to ensure we aren’t applying local trip reductions to regional trips. Connected 1.1 addresses these issues and will hopefully lead to greater clarity and certainty moving forward. 32 Connected Community Implementing this goal results in one of the largest GHG reductions in the Climate Action Plan at nearly 35,000 MTCO2e. Isn’t some or most of this reduction already accounted for in the BAU forecast? I just want to be assured that we are not double counting GHG reductions. Besides, is it realistic to assume that City policies can actually influence whether people choose to own electric vehicles and how much they drive? Several steps were taken to preclude double counting. First, VMT related to achieving mode split objectives were removed from the EV calculations. Second, reductions for each analysis year (2025, 2030, and 2035) focusing on fuel efficiency and the carbon content were applied to the remaining on-road VMT. It is this final subset of VMT/GHG that was then used to calculate emissions from the additional EV adoption. Based on the literature cited in the CAP, we believe that a rapid transition to EV is likely to occur and that the City can support this transition through existing policy related to requirements for EV chargers in certain types of development, continuing to make EV charging visible in public lots, and working with Monterey Bay Community Power on incentives and supportive rate structures. Item 15 Packet Page 214 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 8 # Topic Comment Response 33 Connected Community In Volume 1, pg. 16, "Each us route stops at the main terminal downtown every fifteen minutes". Case studies from other U.S. and international cities shows that 5-10 minute service and low fares are required to increase transit use to significant levels. When riders don't have to consult a schedule, yet still have confidence in service, ridership increases. The City continues to work on improving service and transit headways to make ridership accessible, reliable, and attractive to community members. The language has been updated to be more representative of intended transit headways in 2035. 34 Connected Community Expressed the challenge posed by EV charging at non-peak times and the need to address this problem. As the grid shifts to renewables, the question of additional load from electric vehicles is about grid/circuit capacity as much as a greenhouse gas emissions. Utility rate structures are continuing to shift to produce market incentives to charge off- peak. Additionally, as technologies emerge that allow vehicle batteries to discharge into the house or onto the grids, electric vehicles will likely actually service as a grid resource rather than a grid constraint. 35 Connected Community Expressed the need to consider prioritizing disadvantaged populations for Micromobility services. The prioritization of disadvantaged communities will occur in the implementation of all CAP actions. See new Administrative Action 1. 36 Connected Community Requested to consider the full impacts of Vehicle Miles Traveled (VMT) vs mode share. For example, if someone bikes to work a short distance 5 days a week, and then drives their car 30 miles on a single trip on the weekend, they undo all of the bike trip GHG savings. Supporting equitable and convenient low carbon alternative mobility and more venues for low or no-cost travel is also significant to community recovery. For information about what the City is doing to protect transit riders see https://www.slocity.org/government/department- directory/public-works/slo-transit. 37 Connected Community Will the number of charging stations be enough to meet the GHG reduction goal? Initial research informs the adoption curves and estimates provided in the plan. This high level assessment will be improved upon through implementation of Connected 6.1, which will provide a deeper look at number and types of chargers needed, among other things. Item 15 Packet Page 215 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 9 # Topic Comment Response 38 Connected Community Expressed concern about striking the right balance between technology apps (i.e. Mobility as a service) vs the need for more active transportation infrastructure improvements that provide more comfortable routes for people to bike and walk. Physical infrastructure is critically important for safely achieving the mode split objectives. The digital infrastructure could be an important tool for providing more equitable access to alternative mobility options including micromobility and transit. 39 Connected Community Expressed a concern for the high emphasis on electric vehicles. For trips that begin and end in the City, the focus is heavily on transit and active transportation. Interesting work is currently being completed to assess using the exiting rail corridor for travel and to enhance regional transit. However, regional trips, which make up the majority of the city's transportation emissions, will be very hard to transition to alternative modes in meaningful ways in the next 10 - 15 years. For these reasons, the plan focuses on electric vehicle adoption for these kinds of trips. 40 Connected Community City should create network of bike routes to allow high school students to ride to school. One example would be to install a protected bike route on Orcutt Rd and Johnson Ave to the school. A 2-way bike lane could be located on the westbound side of Johnson Ave by eliminating the car parking spaces on that side. A good bike route network could reduce parents driving their kids to and from the high school, thereby reducing traffic and air pollution. This level of detail is best suited for the City's in-process Active Transportation Plan. Please provide additional suggestions for specific bicycle routes to the Active Transportation Committee or to the Active Transportation Manager Adam Fukushima at afukushima@slocity.org. 41 Connected Community City should discuss what it is doing about inter-community transit to cut down on commutes for workers who live out of town. This CAP is focused on promoting active and low or no-carbon transportation for trips taken within the City of San Luis Obispo and procuring necessary electric vehicle infrastructure. The City plans to explore policies, programs, and partnerships to promote affordable low and no-carbon regional transit opportunities in future CAP updates. 42 Connected Community Making the community safe for bikes will help with transportation goals. The 2020 Climate Action Plan includes the completion and implementation of the Active Transportation Plan, which will improve active transportation safety and accessibility in the City. Item 15 Packet Page 216 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 10 # Topic Comment Response 43 Connected Community Increasing bikeability of SLO should be top priority. The Connected Community pillar in the 2020 Climate Action Plan includes actions to increase the bikeability of San Luis Obispo. 44 Connected Community City should put safer bike routes around Cal Poly along Foothill and Chorro. It is unsafe to ride, especially along Foothill as you approach Casa and California. These comments will be passed on to the project manager of the in-process Active Transportation Plan. 45 Connected Community "Mobility as a Service" touches on facilitating access to transit and bike sharing services, but doesn't mention the potential for EV car sharing. Programs such as BlueLA are making it possible for people of all income levels to travel in a ZEV. Considering a large portion of the population don't ride bikes and transit can rarely ever cover that "last mile", a public EV sharing program would fill an important niche in SLO. This comment will be passed on to the Active Transportation Division in Public Works. 46 Connected Community Ride sharing services are here to stay and are popular, but there are no mandates for them to operate carbon-free. LA is considering mandating this as well as the state; SLO should consider it and not wait for the state to act. This comment will be passed on to the Transportation Division in Public Works. 47 Connected Community The Active Transportation Plan should be implemented immediately as suggested, but it is not as aggressive as it could be. The City needs to prioritize the creation of an entire network of streets closed to through motor vehicle traffic so bikes and pedestrians can move freely. Quick build strategies are great in the short term, but limited protected lanes will likely be congested with pedestrians, dog walkers, children on training wheels, etc. which is problematic for commuter cyclists and e-bikes. The ATP will get more people on bikes and walking, but the CAP needs to get working people out of cars and onto bikes for their commutes and errands. The difference is the target population and types of infrastructure needed. This comment will be passed on to the Active Transportation Division in Public Works. Item 15 Packet Page 217 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 11 # Topic Comment Response 48 Connected Community The micro-mobility program should include a fleet of bicycle taxis to accommodate those who are not likely to ride themselves. The City should consider supporting/partnering with the SLO pedicab service. This comment will be passed on to the Active Transportation Division in Public Works. 49 General All of these actions will come at a great expense to the public. The foundational actions are intended to be an investment in a local and regional economy that create high quality jobs and directly address issues of equity and environmental justice. 50 General It's time to expect more from business and demand that they catch up to everything that has been demanded from individuals. This Climate Action Plan is one step of many that the City is taking to create a more sustainable, resilient, and thriving community. In January, 2020, the City hosted a Community Collaboration for Climate Action meeting where business owners and community organization leaders were invited to meet and collaborate on taking climate action within their organizations. The City plans to continue facilitating similar spaces to support local businesses in taking responsibility for climate action as well. 51 General I am glad you're thinking about all these aspects and including equity. Thank you. We aim for equity considerations to be included in every step of decision making in San Luis Obispo. 52 Green Buildings More significantly address upfront costs associated with green building improvements what the City is doing to help residents. The building retrofit program will be focused on providing incentives and low cost financing, among other strategies, to support retrofits. 53 Green Buildings City should explain more clearly how all electric buildings impact utility bills and how CECP will impact homebuyer choice/affordability. Using standard contemporary electric appliances and state required solar panels, all-electric building utility bills are expected to be cost comparable relative to mixed fuel buildings. Item 15 Packet Page 218 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 12 # Topic Comment Response 54 Green Buildings Allowing for residents to have the choice between gas and electric is important, and ensuring new buildings are made with green features is good. The Clean Energy Choice Program for New Buildings allows for developers to choose between fuels when building new residential and commercial projects, and provides support and incentives for those who choose to go all-electric 55 Green Buildings City should not allow post tension slab construction as it cannot be modified down the line to turn single family structures into multiple units. This comment will be passed on to the Community Development Department. 56 Green Buildings Greening buildings will not do anything to make already- expensive neighborhoods more affordable. As a part of the Building Retrofit Program that is intended to be developed and implemented in 2021, the City will explore ways to leverage existing financing and incentive programs to connect home and building owners with the right tools to install retrofits at the lowest possible cost. 57 Green Buildings City needs to focus on converting existing housing into non- traditional dwelling units and eliminating occupancy caps in certain areas. This comment will be passed on to the Community Development Department. 58 Lead By Example Has the PD considered electric vehicles? They are often left idling, and switching to electric vehicles could be a huge emissions reduction measure. The same idea applies to electric fire trucks. The City will be developing a clean fleet policy for City vehicles in Fall 2020. Item 15 Packet Page 219 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 13 # Topic Comment Response 59 Lead By Example Provide further explanation on city fleet electrification (when it will happen, etc.) and perhaps provide examples of actions in the municipal CAP. Municipal action will be detailed further in the municipal climate plan. Currently, the City is pursuing fleet charging at numerous locations and is expected to develop a clean fleet purchasing policy in the Fall of 2020. 60 Natural Solutions Would compost application on the Johnson Ranch, “City Farm,” and 100 additional acres "use up" all the compost produced from the city's residential and commercial organic waste? If not, would there be a market for the excess? The action focused on carbon sequestration is a study/pilot project and would be focused on answering these types of questions. 61 Natural Solutions Will there be enough water to maintain 10,000 trees? Will recycled water be used? Although the project needs to be developed, it is envisioned that climate tolerate, native species would be planted in natural areas. These trees would require watering on transplant, but would not require irrigation once mature. 62 Natural Solutions Before any tree removal project is approved by the City, the project proponent must submit a written plan to replace the removed trees (either at the same location or elsewhere) and restore the affected area with new plantings or development as appropriate. This comment will be passed on to the project manager when the Urban Forest Master a Plan is initiated. 63 Natural Solutions Tree planting is good but our ordinances for cutting down existing trees for development should be stricter. This CAP focuses on the planting and maintenance of new trees. The City plans to explore policies and ordinances for existing trees and tree removal in future CAP updates. 64 Natural Solutions City should create an "adopt a tree" program to support tree planting, promote shade with a green canopy, and enhance stormwater management services. This comment will be passed on to the project manager responsible for implementing Natural Solutions Action 2.1. 65 Natural Solutions City should explore more open space acquisition, specifically around San Luis Mountain. The City is actively engaged in expanding the City's open spaces and greenbelt corridor, specifically with the most recent acquisition of the Miossi property, and looks forward to further acquisition as funding and property availability allows. Item 15 Packet Page 220 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 14 # Topic Comment Response 66 Other Topics Jargon should be clearly defined and avoided, if possible, specifically in Volume I for things like "mode split". Through the Climate Action Plan and related social media and web content, the City aims to make complicated technical information accessible. Volume 1: Stories from 2035 is intentionally designed to provide a short and engaging overview of the plan's pillars and foundational actions for community members. 67 Other Topics City should explain how it is staying up to date with latest climate science and emerging trends/technologies/best practices throughout the implementation process. City staff has an ongoing commitment to learning best practices for planning and implementation. Of note, the City will be conducting a climate education series as part of its recently initiated climate vulnerability assessment. 68 Other Topics Plan should highlight not that it is a stand-alone, one-off plan, but that it informs and changes existing City policies, documents, and thought processes moving forward. As identified in Administrative Action 2, the plan will be regularly updated. We'll be sure to highlight this in our presentations to the community and City Council. 69 Other Topics Equity focus is vital, but the foundational actions within the plan intended to create equity won't effectively work if the low- income or other communities don't hear about them or read the plan. Communications will be an important component. Equity will continue to be a major focus through implementation. The City will look to organizations such as the Climate Coalition to assist with communication and outreach to residents and organiations throughout the community 70 Other Topics Volume 1, pg. 10, "a stack of papers are handed to me for a signature" should be updated to reflect changing times and the likelihood of paperless offices. The language has been updated to be more representative of business operations in 2035. 71 Other Topics Address how certain actions pertaining to transit and flexible zoning both reduce GHG emissions, promote public health, and make sense for a community that is experiencing changes due to COVID-19. The proposed 2020 Climate Action Plan supports public health improvements that increases community resilience and reduces community risk to this pandemic and to future public health threats, including supporting job creation with clean buildings, increasing active transportation safety and accessibility, and reducing combustion of fossil fuels to improve outdoor and indoor air quality. Supporting equitable and convenient low carbon alternative mobility and more venues for low or no-cost travel is also significant to community recovery. For information about what the City is doing to protect transit riders see https://www.slocity.org/government/department- directory/public-works/slo-transit. 72 Other Topics Include regulatory State engagement as a component of the CAP to promote successful implementation. The CAP includes direction to advocate to MBCP and the state in multiple actions and the City's current Legislative Action Platform provides support for state and regional advocacy. Item 15 Packet Page 221 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 15 # Topic Comment Response 73 Other Topics Maker clearer the connection between the CAP and housing, economic recovery; elaborate on funding and financing sources. The CAP has been updated to better illustrate the connections. 74 Other Topics What about this plan is "community recovery"? Is now the best time for this? This plan seems out of touch with what's happening in the community. The plan will support community recovery from the impacts of the COVID-19 pandemic through outcomes including job creation, reducing public health risks, and lowing utility bills. The literature cited in Volume 2 makes it clear that a low-carbon recovery can provide enduring economic benefit as well as a variety of public health and equity benefits. Please visit Chapter 1 of Volume 2 to learn more. 75 Other Topics City government should take care of city issues, and climate change is not a city issue. Spending tax dollars on this problem is a misuse of money. Climate change threatens the health and safety of all City residents. Adequately preparing San Luis Obispo to be resilient to climate change impacts is essential for the wellbeing of the community. 76 Other Topics CAP should better address the lack of housing and resources for the homeless in order to create a truly safe and equitable community. Otherwise, it shows community members that social equity does not include the poorest, most vulnerable residents. This comment will be passed on to the Community Development Department. 77 Other Topics Tone of CAP given pandemic is disjointed and connection between goals/actions and COVID-19 recovery is unclear/unconvincing. The plan will support community recovery from the impacts of the COVID-19 pandemic through outcomes including job creation, reducing public health risks, and lowing utility bills. The literature cited in Volume 2 makes it clear that a low-carbon recovery can provide enduring economic benefit as well as a variety of public health and equity benefits. Please visit Chapter 1 of Volume 2 to learn more. 78 Other Topics This plan is out of touch, how about focusing on getting jobs back? The plan will support community recovery from the impacts of the COVID-19 pandemic through outcomes including job creation, reducing public health risks, and lowing utility bills. The literature cited in Volume 2 makes it clear that a low-carbon recovery can provide enduring economic benefit as well as a variety of public health and equity benefits. Please visit Chapter 1 of Volume 2 to learn more. Item 15 Packet Page 222 ATTACHMENT F – TABLE OF PUBLIC REVIEW COMMENTS August 18, 2020 Page 16 # Topic Comment Response 79 Other Topics The word "Recovery" in the title is misleading and political in its intent. The plan will support community recovery from the impacts of the COVID-19 pandemic through outcomes including job creation, reducing public health risks, and lowing utility bills. The literature cited in Volume 2 makes it clear that a low-carbon recovery can provide enduring economic benefit as well as a variety of public health and equity benefits. Please visit Chapter 1 of Volume 2 to learn more. 80 Other Topics Many goals lack costly and necessary infrastructure and enforcement mechanisms. The 27 actions presented in the Climate Action Plan are identified as foundational first steps. Further actions will be considered in future climate action plan updates. 81 Other Topics City should push Cal Poly and Cuesta to create more housing for students to free up off-campus housing. The City does not have authority over public institutions of higher education, and both Cal Poly and Cuesta College do not fall within the jurisdiction of the City. However, the City continually supports the enhanced availability of affordable housing and will explore ongoing opportunities to collaborate with these institutions. 82 Other Topics It's disappointing to see that the City won't be able to achieve the carbon neutrality goal by 2035 on its current trajectory. More aggressive actions are needed. The Climate Action Plan includes a mechanism to be updated in concurrence with every other Financial Plan to address the remaining emissions gap. 83 Other Topics Many case studies mentioned in the CAP reference cities that do not have as ambitious climate goals as SLO. The plan should reference some of the European cities that have very aggressive Climate Action Plans. Many of the actions in the plan were inspired by leading European cities. However, the USA and California regulatory environment is substantially different. Therefore, the City attempted to present the most relevant case studies. 84 Other Topics The Plan demonstrates how SLO can be a model for emissions reduction while creating jobs and improving quality of life. No response. 85 Other Topics This is a total waste of time. The energy wasted on this could be used to do something that actually makes a difference and helps the community instead of promoting a political agenda. The foundational actions are intended to be an investment in a local and regional economy that create high quality jobs and directly address issues of equity and environmental justice. 86 Other Topics A lot of great ideas presented; city vehicles and city buildings should be top priority. The Lead by Example pillar is focused on City vehicles and buildings. 87 Other Topics The scale of the plan won't make an impact when other countries are far worse emitters, and one day there will be a means for removing greenhouse gasses from our atmosphere that is invented. The foundational actions are intended to be an investment in a local and regional economy that create high quality jobs and directly address issues of equity and environmental justice. Item 15 Packet Page 223 Item 15 Packet Page 224 Department Name: Community Development Cost Center: 4003 For Agenda of: August 18, 2020 Placement: Public Hearing Estimated Time: 45 minutes FROM: Michael Codron, Community Development Director Prepared By: Kyle Bell, Associate Planner SUBJECT: PUBLIC HEARING TO CONSIDER: 1) AN ORDINANCE REZONING THE SUBJECT PROPERTIES FROM C-D-H AND C-D TO C-D-H-PD AND C-D- PD TO PROVIDE A PLANNED DEVELOPMENT OVERLAY AND 2) DEVELOPMENT REVIEW OF A SIX-STORY MIXED-USE BUILDING CONSISTING OF APPROXIMATELY 30,000 SQUARE FEET OF COMMERCIAL/OFFICE SPACE AND 50 RESIDENTIAL DWELLING UNITS, WITHIN THE DOWNTOWN HISTORIC DISTRICT. THE PROJECT INCLUDES DEMOLITION OF AN EXISTING STRUCTURE, A REQUEST TO ALLOW A MAXIMUM BUILDING HEIGHT OF 75 FEET, WHERE 50 FEET IS THE STANDARD IN THE DOWNTOWN COMMERCIAL ZONE WITH THE PROVISION OF REQUIRED COMMUNITY BENEFITS, AND A REQUEST TO ALLOW A FLOOR AREA RATIO OF 4.0 WITH THE PERMANENT PRESERVATION OF AN OFF-SITE HISTORIC BUILDING. RECOMMENDATION 1. Introduce an Ordinance (Attachment A) changing the zoning of the subject properties from Downtown Commercial (C-D-H and C-D) to (C-D-H-PD and C-D-PD) to include a Planned Development Overlay, based on findings and subject to conditions as outlined in the draft ordinance; and 2. Adopt a Resolution (Attachment B) approving a six-story mixed-use building and request to allow a maximum building height of 75 feet, where 50 feet is the standard in the Downtown Commercial zone, and a request to allow a floor area ratio of 4.0 with the permanent preservation of an off-site historic building. 3. Adopt an Initial Study/Mitigated Negative Declaration for the project (Attachment C). REPORT-IN-BRIEF The proposed project consists of the demolition of an existing one-story commercial building (the existing basement would remain in-tact), and construction of a new 65,752-square-foot six- story mixed-use building that includes approximately 30,000 square feet of commercial/office space and 50 residential dwelling units on a 16,710-square foot lot. The first floor of the project is comprised of three retail suites with accommodations for restaurant use, a residential lobby, commercial office lobby, and a small parking facility with accessible parking, car share spaces, and delivery/drop off spaces. The second and third floor have been designated for commercial office uses. The fourth, fifth, and sixth floors are reserved for the residential apartments (Attachment D, Project Plans). Item 16 Packet Page 225 Twenty-five percent of the proposed residential units (13 units) would be reserved for tenants with moderate incomes. The project also includes an application for a Planned Development Overlay zone including seven parcels with a total area of 2.16 acres located in the Downtown Historic District. In addition to the PD-Overlay the project includes the following requests: • Maximum building height of 75 feet, where 50 feet is the standard in the C-D zone. • Floor area ratio (FAR) of 4.0, where 3.75 is the standard for structures greater than 50 feet in height. • New driveway along Marsh Street. The subject property is directly adjacent to the Master List Historic Resource Hotel Wineman and is in the vicinity of the Master List Masonic Temple and the Master List Commercial Bank Building (Attachment E, Historic Preservation Report). The subject property is not a listed or eligible historic resource (Attachment F, Architectural Evaluation). DISCUSSION In accordance with Table 2-1 of the Zoning Regulations, mixed-use projects are allowed within the C-D zone. The Zoning Regulations identify specific development standards and requirements for mixed-use projects (§17.70.130) as well as specific requirements for projects within the Downtown (§17.32). The project design complies with the objective design criteria and performance standards for mixed-use development and is consistent with the provisions and requirements for lot coverage, floor area ratio, building heights, setbacks, and parking requirements for the C-D zone. PD-Overlay: The PD-Overlay zone is intended to provide for flexibility in the application of zoning standards for proposed developments. The purpose is to allow consideration of innovation in site planning and other aspects of project design. This should include more effective design responses to site features, land uses on adjoining properties, and environmental impacts than what the development standards of the underlying zone would produce without adjustment1. PD zoning shall be approved only in conjunction with derived long-term community benefits and where the project can help achieve the vision, goals, and policies of the General Plan. 1 Zoning Regulations § 17.48.030.D Deviation from Development Standards. The application of the PD-overlay zone to property may include the adjustment or modification, where necessary and justifiable, of any applicable development standard of this Title 17 (e.g., building height, floor area ratio, parcel size, parking, setbacks, etc.) or of the City’s subdivision regulations. The maximum density as allowed by cross-slope percent may be adjusted but shall not exceed the maximum density allowed in the average cross-slope category zero through 15 percent for the applicable zone. Figure 1: PD-Overlay Boundaries Item 16 Packet Page 226 The applicant proposes a PD-Overlay to join the properties located at 1144 Chorro, the existing Downtown Centre (876 Marsh, 895 Higuera, and 890 Marsh), two parcels located on the east side of Morro Street (973 Higuera), and one parcel on the north side of Higuera Street (898 Higuera), as delineated in Figure 1. The PD-Overlay serves as an opportunity for the transfer of density allowances between properties within the boundaries of the PD-Overlay2, however, the maximum density allowance of the combined properties shall not exceed the maximum density allowance for the applicable zone, unless otherwise permitted under the provisions of the Density Bonus Law (Government Code § 65915). Through the PD-Overlay, the project proposes to meet the minimum three Mandatory Project Features (§17.48.060) by providing: a. Affordable Housing: A minimum of 25% moderate-income units (13 units) and b. Energy Efficiency: The project will achieve a LEED Silver rating; and c. Public Amenity: Guarantee long-term maintenance of a significant public plaza on the Downtown Centre site. The Downtown Centre and associated pedestrian paseo was approved by the Architectural Review Commission (ARC) on July 20, 1992 (ARC 107-92) and construction was completed in 1995. The pedestrian paseo was not a requirement of the project design or a condition of approval for the project (the public art installation known as “Puck” is protected by a public art maintenance agreement). No plans have been discussed or considered to reduce or eliminate public access through the property; however, there are no protections in place that would guarantee public access in perpetuity for the Downtown Centre. Condition No. 9 of the Draft Resolution requires that the applicant enter into an agreement for the guarantee long-term maintenance of the Downtown Centre pedestrian paseo as a significant public plaza to satisfy the requirement for the PD-Overlay Mandatory Project Feature3. Maximum Building Height: The project is located in the C-D zone, which allows for a maximum building height of 50 feet and a minimum height of two stories. The City’s Zoning Regulations allow consideration of an increase in maximum height up to 75 feet within this zoning designation if the project includes provision of community benefits, including, but not limited to, the following criteria: Silver rating on the LEED-CS (or equivalent measure), no more than 33% of the storefront level to be used for private parking facilities, and the public benefit s associated with the project must significantly outweigh any detrimental impacts from the additional height (§17.32.030(E)). This section encourages creative building design, mixed-use developments, and accommodation of additional residential units in the Downtown Core, provided that such taller buildings (analyzed through discretionary review processes) contribute defined community benefits and further the goals of the Downtown Core as stated in the Land Use Element (LUE) of the General Plan. The Zoning Regulations stipulate that the Planning Commission (PC) may approve a building height up to 75 feet if it determines that the project includes three community benefits, with at least one from the affordable and workforce housing objective. 2 Zoning Regulations § 17.70.040.B Density Transfer. (1) PD-Overlay Zone. Development potential may be transferred within the area covered by a planned development (PD) overlay zone, in conformance with the requirements of Chapter 17.48: Planned Development (PD) Overlay Zone. 3 Zoning Regulations § 17.48.060.B. The project will provide a substantial public amenity, for example, a significant public plaza, a public park, or a similar improved open space feature, including provisions for guaranteed long-term maintenance not at the expense of the City. Item 16 Packet Page 227 The applicant seeks approval for the 75 feet building by providing the following seven Community Benefits Policy Objectives above and beyond the three that are required: a. Affordable and Workforce Housing (1): The project provides affordable housing at a rate greater than 10 percent dedicated for moderate-income households, as a percentage of the total number of housing units within the project (project provides 25 percent or 13 units for moderate-income households, as required for the PD-Overlay). b. Affordable and Workforce Housing (3): Provides for a residential density greater than 36 units per acre (70 units per acre) where the average floor area of the units is less than 1,000 square feet (423 square feet); and c. Pedestrian Amenities (1): The project provides for the continued use of a major pedestrian connection between Higuera Street and Marsh Street as associated with the PD-Overlay. d. Pedestrian Amenities (2a-g): The project provides for the permanent preservation of the Downtown Centre paseo as a public amenity; and e. Historic Preservation (Off Site): Where there are no historic resources on the project site, the project provides for the permanent preservation of a building offsite within the downtown historic district that is listed in the City’s inventory of historical resources through the recordation of a historic preservation agreement (868 and 870 Monterey Street known as the Muzio Building), as required to increase the building’s FAR. f. Modal Split: Project will provide a permanent mode shift towards alternative transportation for building occupants through a Transportation Demand Management Program (TDMP). The TDMP will include clearly defined, measurable, and verifiable performance measures, and identify how they will be monitored/measured by the City Transportation Division. g. Other Policy Objectives: The project directly implements specific objectives as set forth in the General Plan Land Use Element Policy 4.20 (Design Principals) by incorporating street level activities, upper floor dwellings, continuous storefront, and upper level step backs above the third level. The project also implements aspects of all eight Project Planning Principles of the Downtown Concept Plan, most notably Principal Three: Variety in Form and Function4. Floor Area Ratio (FAR) Exception: The proposed project would result in a FAR of 3.94. The City Zoning Regulations limit FAR for buildings in the C-D zone greater than 50 feet in height to 3.75. Allowable FAR may be increased up to 4.0 in the C-D zone (§ 17.32.020, Table 2-18)5. The project includes the permanent preservation of an off-site building located at 868 and 870 4 2017 Downtown Concept Plan. Planning Principals and Goals. (3) Variety in Form and Function: Encourage a variety of compatible buildings, uses, activities, and housing types for an inclusive and vital downtown. (3.1) Provide physical framework that retains and strengthens downtown’s economic health and vitality. (3.2) Encourage flexible mixed-use development throughout the downtown. (3.3.) Create opportunities for smaller, independent businesses and services for residents. (3.4) Ensure that downtown functions both as a commercial district and a residential neighborhood, with a variety of housing options to meet different needs. (3.5) Encourage the City and County to meet their future office needs in the vicinity of their existing government centers. (3.6) Reduce auto travel by encouraging the provisions of services, jobs , and housing in proximity to each other. 5 Zoning Regulation § 17.32 Table 2-18: Maximum Floor Area Ratio: 3.0 – maximum allowed for buildings up to 50 feet in height. 3.75 – maximum allowed for buildings approved greater than 50 feet in height. 4.0 – maximum allowed for approved buildings over 50 feet in height with transfer of development credits for open space protection or historic preservation… Item 16 Packet Page 228 Monterey Street (Muzio Building) that is listed on the National Register of Historic Places, which is intended to address this requirement. Condition No. 10 has been incorporat ed into the draft resolution which requires the recordation of a Historic Preservation Agreement for the permanent preservation of the Muzio Building. Limitations on New Driveways: Zoning Regulations §17.32.030.B states that onsite parking may be considered inappropriate at certain downtown locations where the pedestrian experience would be harmed by vehicle ingress and egress across the sidewalk. In order to maintain pedestrian orientation and the continuity of sidewalks within the C-D zone, the installation of new driveway approaches are subject to the limitations identified under §17.32.030.B. The applicant was unable to negotiate shared vehicle access off the adjacent alley that is owned and managed by the Wineman Hotel property; therefore, the number of on-site parking spaces was reduced to seven spaces to comply with the required findings for new driveways within the C-D zone6. The applicant has identified that the seven vehicle parking spaces will comprise of 3-4 spaces reserved for the purposes of carsharing, one space for van accessible parking, and the remaining 2-3 spaces reserved for short term use only, such as drop off or pick up. The applicant proposes to meet the remaining parking requirement through the City’s Parking In-lieu Fee Ordinance7. The applicant has provided a Parking Demand Reduction Program intended to implement measures to reduce parking demand associated with the project by providing car sharing vehicles, showers and lockers for employees, secure bicycle parking, and informational packets for alternative modes of transportation (Attachment G, Parking Demand Reduction and Management Plan). Previous Council or Advisory Body Action On November 26, 2018, the Cultural Heritage Committee (CHC) reviewed the proposed project for consistency with the Historic Preservation Program Guidelines (HPPG) and Secretary of the Interior’s Standards. The CHC, with a vote of 7:0, provided eight directional items to the applicant to address specific concerns related to building and site design (Attachment H, CHC Staff Report and Meeting Minutes). On December 3, 2018, the Architectural Review Commission (ARC) reviewed the proposed project for consistency with the Community Design Guidelines (CDG). The ARC, with a vote of 6:1, provided six directional items to the applicant to address specific concerns related to building and site design (Attachment I, ARC Staff Report and Meeting Minutes). 6 Zoning Regulations §17.32.030.B. Limitations on New Driveways: …In order to approve the new driveway approach, the review authority shall make at least one of the following findings: (1) The proposed driveway approach will not harm the general health, safety, and welfare of people living or working in the vicinity of the project site because the number of vehicles expected to use the driveway is limited (fewer than 10 spaces) and there are no other alternatives, such as service alleys, to provide vehicle access to the site… 7 Municipal Code §4.30.015. Properties located within the area enclosed by a bold solid line on the parking in-lieu fee area map may pay parking in-lieu fees as established by council, in lieu of providing required on-site parking space. Item 16 Packet Page 229 On September 17, 2019, the City Council reviewed the project for initiation of the PD-Overlay and associated mandatory project features as well as the community benefit policies for consideration of a building height of 75 feet. The City Council, with a vote of 3:0:2 (Council Members Pease and Gomez were recused), supported the initiation and provided two directional items for the applicant to address regarding the community benefit for the Mode Shift, and clarification about the number of dedicated affordable units (Attachment J, Council Report and Action Update). On June 1, 2020, the ARC reviewed the revised project design and with a vote of 5:1 recommended that the PC find the project consistent with the CDG, and recommended the PC consider several comments, recommendations, and references to particular CDG as part of their review, including the project’s effect on viewsheds from as seen from intersections, and compatibility with listed historic properties in the immediate vicinity (Attachment K, ARC Report, Draft Minutes 6.1.20). On June 22, 2020, the CHC reviewed the revised project design and with a vote of 3:1 recommended that the PC find the project consistent with the HPPG and recommended consideration of a modification to change the stucco finish in the upper three stories to a brick facing matching the lower three stories. The motion included recognition that the existing Riley’s Department Store uniquely embodies mid-century architecture in the Downtown Historic District. (Attachment L, CHC Report, Draft Minutes 6.22.20). On July 8, 2020, the PC reviewed the project and unanimously recommended that the Counci l find the project consistent with the Zoning Regulations and General Plan policies, with minor changes to the draft resolution conditions regarding bicycle parking racks and clarification on the private maintenance agreement for the Downtown Centre (Attachment M, PC Report, Draft Minutes 7.8.20). A more detailed evaluation of the comments, and recommendations from the previous City Council hearing, ARC, CHC and PC have been consolidated and provided as Attachment N (Initiation and Advisory Body Comments Summary). Policy Context The LUE provides specific design guidelines for new buildings within the Downtown Core. LUE Policy 4.20 and its subsequent sub-policies detail specific guidelines for construction and uses of the new development. The proposed project is designed to be consistent with these policies and includes elements such as continuous street level stores and restaurants, upper level residential dwellings, similar storefront widths to existing buildings in the Downtown, and includes design details such as transom windows, bulkheads, large display windows, awnings, landscaping and patios that can be appreciated by people on the sidewalks. LUE Policy 4.20.4 states, in part, that tall buildings (50-75 feet) shall be designed to achieve multiple policy objectives, including design amenities, housing, and retail land uses. Item 16 Packet Page 230 LUE Policy 4.2 states that the Downtown is not only a commercial district, but also a neighborhood. As such, the LUE encourages development within the Downtown to include a variety of uses, including residential8, and that is designed for the enjoyment of those that live within Downtown. Housing Element (HE) Policy 5.3 encourages the development of housing above ground-level retail stores and offices to provide housing opportunities close to activity centers and to use land efficiently. HE Policy 6.10 indicates that in order to help meet the Quantified Objectives, the City will support residential infill development and promote higher residential density where appropriate. Furthermore, HE Policy 6.2 specifically requires that new commercial developments in the Downtown Core shall include housing. The HE and LUE encourage mixed-use projects where they can be found to be compatible with existing and potential future development. The LUE encourages compatible mixed uses in commercial districts (LUE Policy 3.8.5) and specifically discusses residential and commercial mixed use (LUE Policy 2.3.6)9. The HE provides policies and programs that speak specifically to supporting affordable housing projects where appropriate (HE Goals 2, 4, & 6). The proposed project is consistent with the policies of the HE and LUE as the project incorporated 50 residential units and 30,000 square feet of commercial/office space providing for a variety of uses that are compatible and complementary to uses throughout the Downtown Core and commercial district. Housing is a Major City Goal for 2019-21. Housing was determined to be one of Council’s priority goals for the City to accomplish over the 2019-21 financial plan. The goal stipulates that the City should facilitate increased production of all housing types designed to be economically accessible to the area workforce and low and very low-income residents, through increased density and proximity to transportation corridors in alignment with the Climate Action Plan. The project implements the City’s Housing goal as the project is located within the Downtown Core and includes 50 residential units, 13 of which are dedicated for affordable housing for moderate income households, that may provide housing opportunities for individuals who work within the Downtown. Public Engagement Consistent with the City’s Public Engagement and Noticing (PEN) Manual and the City’s Municipal Code, the project was noticed per the City’s notification requirements for Development Projects for each public hearing associated with the project. Newspaper legal advertisements were posted in the New Times ten days prior to the hearing. Additionally, postcards were sent to both tenants and owners of properties located within 300 feet of the project site ten days before the hearing. 8 LUE Policy 4.2.1. Existing and New Dwellings: The City shall use the following when evaluating development in the Downtown area: A) Existing residential uses within and around the commercial core should be protected, and new ones should be developed; B) Dwellings should be provided for a variety of households; C) Dwellings should be interspersed with commercial uses; D) All new, large commercial projects should include residential uses; E) Commercial core properties may serve as receiver sites for transfer of development credits, thereby having higher residential densities than otherwise allowed... 9 LUE Policy 2.3.6. The City shall encourage mixed use projects, where appropriate and compatible with existing and planned development on the site and with adjacent and nearby properties. The City shall support the location of mixed use projects and community and neighborhood commercial centers near major activity nodes and transportation corridors / transit opportunities where appropriate. Item 16 Packet Page 231 CONCURRENCE The project has been reviewed by various City departments and divisions including: Planning, Engineering, Arborist, Transportation, Building, Utilities, and Fire. Staff has identified several unique conditions given the specific circumstances of the project that would require special conditions. Specific attention should be provided on the following conditions: Engineering Division has identified Condition No. 26 to require the installation of Mission Style sidewalk, and Conditions No. 36 through 40 to address the flood zone and floodproofing for the building. The Transportation Division has identified Condition No. 66 through 69 to address frontage improvements and upgrades consistent with the American Disabilities Act (ADA), and Condition No. 70 to address vehicle and pedestrian safety for vehicles entering and exiting the property. Other comments have been incorporated into the draft resolutions as condit ions of approval. CONSISTENCY COVID-19 ORDERS AND CURRENT FISCAL CONTINGENCY PLAN This activity is presently allowed under the State and Local emergency orders associated with COVID-19. This Project and associated staff work will be reimbursed by the Developer directly or indirectly through fees and therefore consistent with the guidance of the City’s Fiscal Health Contingency Plan. ENVIRONMENTAL REVIEW An Initial Study (IS) has been prepared in accordance with the California Environmental Quality Act (CEQA) to evaluate the potential environmental effects of the proposed project. A Mitigated Negative Declaration (MND) is recommended for adoption (Attachment 13, Initial Study/Mitigated Negative Declaration). The IS-MND identifies that the project would potentially affect the following environmental factors unless mitigated: air quality, biological resources, cultural resources, hazards and hazardous materials, noise, transportation, tribal cultural resources, and utilities and service systems. Mitigation measures have been identified to reduce these potential impacts to less than significant, including, but not limited to, standard idling restrictions, dust control measures, preparation of a geologic investigation for asbestos containing materials and compliance with existing regulations if detected, and implementation of best management controls for construction traffic and noise. The project is also within a Burial Sensitivity Area associated with San Luis Obispo Creek identified in “Figure 1: Cultural Resources” of the City’s Conservation Open Space Element (COSE). Based on the project’s location and proposed ground disturbance, the project may have the potential to impact previously unidentified cultural materials during subsurface grading and excavation activities. Mitigation measures have been identified to require cultural resource awareness training of all construction personnel and preparation of an archaeological monitoring plan that would ensure an immediate halt work order shall be issued in the event that historical or archaeological remains are discovered. With incorporation of mitigation measures, potential environmental effects of the project would not directly or indirectly result in any substantial adverse effects on the environment. Item 16 Packet Page 232 A 30-day public review period extended from April 30, 2020 through May 30, 2020, comments were received from the Department of Toxic Substances Control (DTSC) and the Air Pollution Control District (APCD). APCD communicated their support of the project as infill development consistent with San Luis Obispo Council of Government’s Reginal Transportation Plan and Sustainable Communities Strategy and agrees with all mitigation measures as proposed. DTSC provided comments on general best practices for the demolition of the existing structure and removal of materials from the site and guidance on handling of any hazardous materials, which have been addressed under mitigation measures for air quality (AQ-1 through AQ-5). FISCAL IMPACT Budgeted: No Budget Year: N/A Funding Identified: No Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Total N/A When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which found that overall, the General Plan was fiscally balanced. Accordingly, since the proposed project is consistent with the General Plan, it has a neutral fiscal impact. ALTERNATIVES 1. Continue consideration of the application to a future date. The Council may continue its review of the project to a date certain hearing if additional time or information is needed to make a decision. If additional information is needed, direction should be provided to staff so that it can be presented at that subsequent hearing. The Council may direct staff and the applicant to make specific changes to the project. Direction on changes should be specific and preferably within the scope of the environmental document prepared for the project. Changes beyond the scope of the IS/MND prepared for the project would require additional environmental review and delay the project entitlement process. 2. Deny the project. The Council may deny the project, based on findings of inconsistency with California State Law, the City’s General Plan, Zoning Regulations, and other applicable City regulations. Item 16 Packet Page 233 Attachments: a - Draft Ordinance a - Exhibit A to Draft Ordinance b - Draft Resolution c - COUNCIL READING FILE - Initial Study-MND d - COUNCIL READING FILE - Project Plans e - Historic Report f - COUNCIL READING FILE - Architectural Evaluation g - Parking Demand Reduction Plan h - COUNCIL READING FILE - CHC Report and Meeting Minutes dated 11/26/2018 i - COUNCIL READING FILE - ARC Report and Meeting Minutes dated 12/03/2018 j - COUNCIL READING FILE - Council Initiation and Action Update dated 09/17/2019 k - COUNCIL READING FILE - ARC Report and Minutes dated 06/01/2020 l - COUNCIL READING FILE - CHC Report and Draft Minutes dated 06/22/2020 m - COUNCIL READING FILE - PC Report and Minutes dated 07/08/2020 n - Initiation and Advisory Body Comments Summary Item 16 Packet Page 234 ORDINANCE NO. ________ (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A PLANNED DEVELOPMENT OVERLAY FOR SEVEN PROPERTIES WITHIN THE DOWNTOWN COMMERCIAL ZONE AND AMENDING THE ZONING REGULATIONS MAP TO CHANGE THE ZONING DESIGNATION OF THE ASSOCIATED PROPERTIES FROM C-D-H TO C-D-H-PD AND C- D TO C-D-PD, RESPECTFULLY, INCLUDING A MITIGATED NEGATIVE DECLARATION OF ENVIRO NMENTAL REVIEW, AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED AUGUST 18, 2020 (1144 CHORRO, 868 AND 870 MONTEREY, 876 AND 890 MARSH, 895, 898, 973 HIGUERA STREETS: PDEV-0509- 2019, & EID-0475-2019) WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on September 17, 2019, initiating the project in consideration of the proposed Community Benefits and Mandatory Project Features for the Planned Development Overlay (PD-Overlay), pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019, Mark Rawson, applicant; and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted a web based public hearing on June 1, 2020, recommending approval of the project with direction to the Planning Commission for consistency with the Community Design Guidelines, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-2019, & EID-0475- 2019, Mark Rawson, applicant; and WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a web based public hearing on June 22, 2020, recommending approval of the project with direction to the Planning Commission for consistency with the Historic Preservation Program Ordinance, and the Historic Preservation Guidelines, pursuant to a proceeding instituted under ARCH-1687- 2018, PDEV-0509-2019, & EID-0475-2019, Mark Rawson, applicant; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted web based public hearing on July 8, 2020, recommending approval of the Planned Development Overlay to the City Council pursuant to a proceeding instituted under ARCH-1687-2018, PDEV- 0509-2019, & EID-0475-2019, Mark Rawson, applicant; and WHEREAS, the City Council of the City of San Luis Obispo has duly considered all evidence, including the testimony of the applicant, interested parties, and evaluation and recommendations by staff, presented at said hearing. WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and Item 16 Packet Page 235 Ordinance No. ______ (2020 Series) Page 2 O ______ NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the Council makes the following findings: 1. The proposed PD-Overlay furthers the goals of the General Plan for compatible development because the Land Use Element (LUE) encourages residential dwellings within all new commercial developments and indicates that commercial core properties may serve as receiver sites for transfer of development credits, thereby having higher residential densities than otherwise allowed (LUE 4.2.1). The PD-Overlay serves as an opportunity for the transfer of density allowances from the Downtown Centre to be redistributed throughout the PD-Overlay providing opportunities to develop higher density projects within the Downtown Core. 2. The proposed PD-Overlay will not be detrimental to the health, safety and welfare of those living and working in the vicinity since the proposed changes to the City's maps accommodate the existing and future development of the site with uses and improvements that will be compatible with other properties in the surrounding vicinity. 3. The project is consistent with the General Plan policies and implements Housing Element policies by allowing expansion of residential land uses in order to help meet the Quantified Objectives by supporting residential infill development and promote higher residential density where appropriate. 4. The PD-Overlay does not provide for any modifications to development standards applicable to projects within the Downtown Commercial (C-D) zone that would result in any development that would be inconsistent with the development potential of any other property within the C-D zone, and all associated development within the PD- Overlay shall be subject to applicable provisions of the Zoning Regulations. SECTION 2. California Environmental Quality Act (CEQA) Findings, Mitigation Measures, and Mitigation Monitoring Program. The City Council hereby adopts the proposed Mitigated Negative Declaration of Environmental Impact finding that it adequately identifies the projects potential significant impacts with incorporation of the following mitigation measures and monitoring programs: Air Quality AQ-1 During all construction activities and use of diesel vehicles, the applicant shall implement the following idling control techniques: 1. Idling Restrictions Near Sensitive Receptors for Both On- and Off-Road Equipment. a. Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors if feasible; b. Diesel idling within 1,000 feet of sensitive receptors shall not be permitted; c. Use of alternative fueled equipment shall be used whenever possible; and, d. Signs that specify the no idling requirements shall be posted and enforced at the construction site. Item 16 Packet Page 236 Ordinance No. ______ (2020 Series) Page 3 O ______ 2. California Diesel Idling Regulations. On-road diesel vehicles shall comply with Section 2485 of Title 13 of the California Code of Regulations. This regulation limits idling from diesel-fueled commercial motor vehicles with gross vehicular weight ratings of more than 10,000 pounds and licensed for operation on highways. It applies to California and non-California based vehicles. In general, the regulation specifies that drivers of said vehicles: a. Shall not idle the vehicle’s primary diesel engine for greater than 5 minutes at any location, except as noted in Subsection (d) of the regulation; and, b. Shall not operate a diesel-fueled auxiliary power system (APS) to power a heater, air conditioner, or any ancillary equipment on that vehicle during sleeping or resting in a sleeper berth for greater than 5.0 minutes at any location when within 1,000 feet of a restricted area, except as noted in Subsection (d) of the regulation. Signs must be posted in the designated queuing areas and job sites to remind drivers of the 5-minute idling limit. The specific requirements and exceptions in the regulation can be reviewed at the following website: www.arb.ca.gov/msprog/truck- idling/2485.pdf. AQ-2 During all construction and ground-disturbing activities, the applicant shall implement the following particulate matter control measures and detail each measure on the project grading and building plans: a. Reduce the amount of disturbed area where possible. b. Use water trucks or sprinkler systems in sufficient quantities to prevent air borne dust from leaving the site and from exceeding APCD’s limit of 20% opacity for no greater than 3 minutes in any 60-minute period. Increased watering frequency shall be required whenever wind speeds exceed 15 miles per hour (mph) and cessation of grading activities during periods of winds over 25 mph. Reclaimed (non-potable) water is to be used in all construction and dust-control work. c. All dirt stockpile areas (if any) shall be sprayed daily and covered with tarps or other dust barriers as needed. d. Permanent dust control measures identified in the approved project revegetation and landscape plans shall be implemented as soon as possible, following completion of any soil disturbing activities. e. Exposed grounds that are planned to be reworked at dates greater than one month after initial grading shall be sown with a fast germinating, non-invasive, grass seed and watered until vegetation is established. f. All disturbed soil areas not subject to revegetation shall be stabilized using approved chemical binders, jute netting, or other methods approved in advance by the APCD. g. All roadways, driveways, sidewalks, etc. to be paved shall be completed as soon as possible. In addition, building pads shall be laid as soon as possible after grading unless seeding or soil binders or soil binders are used. h. Vehicle speed for all construction vehicles shall not exceed 15 m.p.h. on any unpaved surface at the construction site. i. All trucks hauling dirt, sand, soil, or other loose materials, are to be covered or shall maintain at least two feet of freeboard (minimum vertical distance between top of load and top of trailer) in accordance with California Vehicle Code Section 23114. Item 16 Packet Page 237 Ordinance No. ______ (2020 Series) Page 4 O ______ j. Install wheel washers where vehicles enter and exit unpaved roads onto streets or wash off trucks and equipment leaving the site. Sweep streets at the end of each day if visible soil material is carried onto adjacent paved roads. k. Water sweepers shall be used with reclaimed water where feasible. Roads shall be pre- wetted prior to sweeping when feasible. l. All PM10 mitigation measures required shall be shown on grading and building plans. m. The contractor or builder shall designate a person or persons to monitor the fugitive dust emissions and enhance the implementation of the measures as necessary to minimize dust complaints, reduce visible emissions below the APCD’s limit of 20% opacity for no greater than 3 minutes in any 60 minute period. Their duties shall include holidays and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the APCD Compliance Division prior to the start of any grading, earthwork or demolition. AQ-3 Prior to initiation of demolition/construction activities, the applicant shall retain a registered geologist to conduct a geologic evaluation of the property including sampling and testing for naturally occurring asbestos in full compliance with California Air Resources Board Air Toxics Control Measure (ATCM) for Construction, Grading, Quarrying, and Surface Mining Operations (93105) and SLOAPCD requirements. This geologic evaluation shall be submitted to the City Community Development Department upon completion. If the geologic evaluation determines that the project would not have the potential to disturb asbestos containing materials (ACM), the applicant must file an Asbestos ATCM exemption request with the SLOAPCD. AQ-4 If asbestos containing materials (ACM) are determined to be present onsite, proposed earthwork, demolition, and construction activities shall be conducted in full compliance with the various regulatory jurisdictions regarding ACM, including the ARB Asbestos Air Toxics Control Measure (ATCM) for Construction, Grading, Quarrying, and Surface Mining Operations (93105) and requirements stipulated in the National Emission Standards for Hazardous Air Pollutants (40 CFR 61, Subpart M – Asbestos; NESHAP). These requirements include, but are not limited to, the following: 1. Written notification, within at least 10 business days of activities commencing, to the SLOAPCD; 2. Preparation of an asbestos survey conducted by a Certified Asbestos Consultant; and, 3. Implementation of applicable removal and disposal protocol and requirements for identified ACM. AQ-5 Prior to initiation of demolition/construction activities, the applicant shall implement the following measures to reduce the risk associated with disturbance of ACM and lead-coated materials that may be present within the existing structure onsite: a. Demolition of the on-site structure shall comply with the procedures required by the National Emission Standards for Hazardous Air Pollutants (40 CFR 61, Subpart M – Asbestos) for the control of asbestos emissions during demolition activities. SLOAPCD is the delegated authority by the U.S. EPA to implement the Federal Asbestos NESHAP. Prior to demolition of on-site structures, SLOAPCD shall be notified, per NESHAP requirements. The project applicant shall submit proof that SLOAPCD has been notified prior to demolition activities to the City Community Development Department. Item 16 Packet Page 238 Ordinance No. ______ (2020 Series) Page 5 O ______ b. If during the demolition of the existing structure, paint is separated from the construction materials (e.g., chemically or physically), the paint waste shall be evaluated independently from the building material by a qualified hazardous materials inspector to determine its proper management. All hazardous materials shall be handled and disposed of in accordance with local, state, and federal regulations. According to the Department of Toxic Substances Control (DTSC), if the paint is not removed from the building material during demolition (and is not chipping or peeling), the material can be disposed of as non-hazardous construction debris. The landfill operator shall be contacted prior to disposal of lead-based paint materials. If required, all lead work plans shall be submitted to SLOAPCD at least 10 days prior to the start of demolition. The applicant shall submit proof that paint waste has been evaluated by a qualified hazardous waste materials inspector and handled according to their recommendation to the City Community Development Department. Monitoring Program: Measures AQ-1 and AQ-2 shall be incorporated into project grading and building plans for review and approval by the City Community Development Department. Compliance shall be verified by the City during regular inspections, in coordination with the County of San Luis Obispo Air Pollution Control District, as necessary. The applicant shall submit the geologic evaluation detailed in measure AQ-3 to the City Community Development Department upon completion. The applicant shall submit proof of written notification to SLOAPCD as described in measures AQ-4 and AQ-5 to the City Community Development Department. Biological Resources BIO-1 Site preparation, ground-disturbing, and construction activities should be conducted outside of the migratory bird breeding season when feasible. If such activities are required during this period, a qualified biologist shall conduct a nesting bird survey and verify that migratory birds are not nesting in the impact zone. If nesting activity is detected, the following measures shall be implemented: a. The project shall be modified via the use of protective buffers, delaying construction activities, or other methods designated by the qualified biologist to avoid direct take of identified nests, eggs, and/or young protected under the MBTA and/or California Fish and Game Code; b. The Environmental Monitor shall document all active nests and submit a letter report to City Planning staff and the City’s Sustainability Officer documenting project compliance with the MBTA, California Fish and Game Code, and applicable project mitigation measures. Monitoring Program: Compliance with mitigation measures will be reviewed with plans as part of the improvement plans and construction drawings. Compliance will be verified by the Natural Resources Manager in consultation with the Community Development Director, who shall confirm the conclusion and recommendations of the preconstruction nesting bird surveys and provide site inspections as necessary to ensure implementation. Item 16 Packet Page 239 Ordinance No. ______ (2020 Series) Page 6 O ______ Cultural Resources CR-1 Prior to construction activities, a qualified archaeologist shall conduct cultural resource awareness training for all construction personnel including the following: a. Review the types of archaeological artifacts that may be uncovered; b. Provide examples of common archaeological artifacts to examine; c. Review what makes an archaeological resource significant to archaeologists and local Native Americans; d. Describe procedures for notifying involved or interested parties in case of a new discovery; e. Describe reporting requirements and responsibilities of construction personnel; f. Review procedures that shall be used to record, evaluate, and mitigate new discoveries; and g. Describe procedures that would be followed in the case of discovery of disturbed as well as intact human burials and burial-associated artifacts. CR-2 A qualified archaeologist monitor shall be present during all project related construction activities that result in disturbance of native soil that may contain archaeological resources. CR-3 In the event that historical or archaeological remains are discovered during earth disturbing activities associated with the project, an immediate halt work order shall be issued, and the Community Development Director shall be notified. A qualified archaeologist shall conduct an assessment of the resources and formulate proper mitigation measures, if necessary. After the find has been appropriately mitigated, work in the area may resume. A Chumash representative shall monitor any mitigation excavation associated with Native American materials. The conditions for treatment of discoveries shall be printed on all building and grading plans. The City shall review and approve the selected archaeologist, if needed, to ensure they meet appropriate professional qualification standards, consistent with the Archaeological Resource Preservation Program Guidelines. CR-4 In the event that human remains are exposed during earth disturbing activities associated with the project, an immediate halt work order shall be issued, and the Community Development Director shall be notified. State Health and Safety Code Section 7050.5 requires that no further disturbance of the site or any nearby area reasonably suspected to overlie adjacent human remains shall occur until the County Coroner has made the necessary findings as to origin and disposition pursuant to Public Resources Code Section 5097.98. If the remains are determined to be of Native American descent, the coroner shall notify the Native American Heritage Commission within 24 hours. Monitoring Program: These conditions shall be noted on all grading and construction plans. The City shall review and approve the selected archaeologist monitor, to ensure they meet appropriate professional qualification standards, consistent with the Archaeological Resource Preservation Program Guidelines. Item 16 Packet Page 240 Ordinance No. ______ (2020 Series) Page 7 O ______ Noise N-1 For the entire duration of the construction phase of the project, the following Best Management Practices (BMPs) shall be adhered to: 1. Stationary construction equipment that generates noise that exceeds 60 dBA at the project boundaries shall be shielded with the most modern noise control devises (i.e. mufflers, lagging, and/or motor enclosures). 2. Impact tools (e.g., jack hammers, pavement breakers, rock drills, etc.) used for project construction shall be hydraulically or electrically powered wherever possible to avoid noise associated with compressed-air exhaust from pneumatically powered tools. 3. Where use of pneumatic tools is unavoidable, an exhaust muffler on the compressed- air exhaust shall be used. 4. All construction equipment shall have the manufacturers’ recommended noise abatement methods installed, such as mufflers, engine enclosures, and engine vibration insulators, intact and operational. 5. All construction equipment shall undergo inspection at periodic intervals to ensure proper maintenance and presence of noise control devices (e.g., mufflers, shrouding, etc.). N-2 Construction plans shall note construction hours, truck routes, and all construction noise Best Management Practices (BMPs) and shall be reviewed and approved by the Community Development Department prior to issuance of grading/building permits. The City shall provide and post signs stating these restrictions at construction entry sites prior to commencement of construction and maintained throughout the construction phase of the project. All construction workers shall be briefed at a pre-construction meeting on construction hour limitations and how, why, and where BMP measures are to be implemented. N-3 Construction activities shall be conducted so that the maximum noise levels at affected properties will not exceed 80 dBA for multi-family residential and 85 dBA for mixed residential/commercial uses, restaurants, and meeting places. N-4 For all construction activity at the project site, additional noise attenuation techniques shall be employed as needed to ensure that noise levels are maintained within levels allowed by the City of San Luis Obispo Municipal Code, Title 9, Chapter 9.12 (Noise Control). Such techniques shall include, but are not limited to: • Sound blankets shall be used on noise-generating equipment. • Stationary construction equipment that generates noise levels above 65 dBA at the project boundaries shall be shielded with a barrier that meets a sound transmission class (a rating of how well noise barriers attenuate sound) of 25. • All diesel equipment shall be operated with closed engine doors and shall be equipped with factory-recommended mufflers. • The movement of construction-related vehicles, with the exception of passenger vehicles, along roadways adjacent to sensitive receptors shall be limited to the hours between 7:00 A.M. and 7:00 P.M., Monday through Saturday. No movement of heavy equipment shall occur on Sundays or official holidays (e.g., Thanksgiving, Labor Day). • Temporary sound barriers shall be constructed between construction sites and affected uses. Item 16 Packet Page 241 Ordinance No. ______ (2020 Series) Page 8 O ______ N-5 The project contractor shall inform residents and business operators at properties within 300 feet of the project of proposed construction timelines and noise compliant procedures to minimize potential annoyance related to construction noise. Signs shall be in place prior to and throughout grading and construction activities informing the public that noise- related complaints shall be directed to the construction manager prior to the City’s Community Development Department. N-6 All noise-generating rooftop building equipment, such as air conditioners and kitchen ventilation systems, shall be installed away from existing noise-sensitive receptors (i.e., residences) or be placed behind adequate noise barriers. Monitoring Program: These measures shall be incorporated into project grading and building plans for review and approval by the City Community Development Department. Compliance shall be verified by the City during regular inspections. Transportation TR-1 Construction Management Plan. Prior to the issuance of each building permit, the construction contractor shall meet with the Public Works department to determine tr affic management strategies to reduce, to the maximum extent feasible, traffic congestion and the effects of parking demand by construction workers during construction of this project. The construction contractor will develop a construction management plan for review and approval by the Public Works department. The plan shall include at least the following items and requirements: • A set of comprehensive traffic control measures, including scheduling of major truck trips and deliveries to avoid peak traffic and pedestrian hours, detour signs if required, lane closure procedures, sidewalk closure procedures, signs, cones for drivers, and designated construction access routes. • Notification procedures for adjacent property owners and public safety personnel regarding when major deliveries, detours, and lane closures will occur. • Location of construction staging areas for materials, equipment, and vehicles. • Identification of haul routes for movement of construction vehicles that would minimize impacts on vehicular and pedestrian traffic, circulation and safety; and provision for monitoring surface streets used for haul routes so that any damage and debris attributable to the haul trucks can be identified and corrected by the project applicant. • Temporary construction fences to contain debris and material and to secure the site. • Provisions for removal of trash generated by project construction activity. • A process for responding to and tracking complaints pertaining to construction activity. • Provisions for monitoring surface streets used for truck routes so that any damage and debris attributable to the trucks can be identified and corrected. • It is anticipated that this Construction Traffic Management Plan would be developed in the context of the City Municipal Code Construction and Fire Prevention Regulations and the City of San Luis Obispo 2013 Construction & Fire Codes, which address other issues such as hours of construction onsite, limitations on noise and dust emissions, and other applicable items. Item 16 Packet Page 242 Ordinance No. ______ (2020 Series) Page 9 O ______ Monitoring Program: Prior to building permit issuance the Construction Management Plan shall be submitted to the City Community Development Department and Public Works Department for review. SECTION 3. Action. The City Council hereby approves the application PDEV-0509-2019 & EID-0475-2019 and adopts an Ordinance to establish a PD-Overlay for seven properties within the C-D zone for the purposes of transferring density credits from the Downtown Centre to adjacent properties, as set forth in Exhibit A, subject to the following conditions. 1. The PD-Overlay is intended solely for the purposes of transferring of density allowances from the Downtown Centre to adjacent properties within the PD-Overlay (§17.70.040.B.1), all future development shall conform to all other development standards as established by the Zoning Regulations, and other applicable City standards. 2. The subject properties within the PD-Overlay boundaries provide residential density at a ratio of 36 density units per acre (77.76 density units), pr ojects proposed within the PD-Overlay shall not exceed the overall density allowance for the collective area of the properties within the boundaries of the PD-Overlay and shall remain in conformance with density allowances as established in the C-D zone Development Standards (§17.32), unless otherwise permitted under the provisions of the Density Bonus Law (Government Code § 65915). 3. Any new development within the PD-Overlay that results in the construction of new residential units shall provide a minimum of 25 percent of the residential units within the project as affordable to households of very low, low, or moderate-income households, consistent with all provisions established under Municipal Code Chapter 17.140. 4. Any new development within the PD-Overlay that results in the construction of new residential units shall achieve greater energy efficiency than standard developments through the incorporation of green building techniques, scoring at least a silver rating on the LEED or other equivalent rating system, or achieve a zero-net energy use, subject to the satisfaction of the Community Development Director. 5. Prior to issuance of a building permit for any new development that results in the transfer of density credits within the PD-Overlay, the applicant shall record an Offer to Dedicate Pedestrian Easement covenant for the irrevocable and perpetual access for the general public to use and access the Downtown Centre as a public plaza for the duration of the PD-Overlay. The covenant shall identify the responsibilities for maintenance and public access of the Downtown Centre, subject to the satisfaction of the Community Development Director. SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable Item 16 Packet Page 243 Ordinance No. ______ (2020 Series) Page 10 O ______ SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the ____ day of ___________, 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the _____ day of ____________, 2020, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ____________________________________ Teresa Purrington City Clerk Item 16 Packet Page 244 Item 16 Packet Page 245 RESOLUTION NO. ________ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING DEVELOPMENT OF A SIX- STORY MIXED-USE BUILDING CONSISTING OF APPROXIMATELY 30,000 SQUARE FEET OF COMMERCIAL/OFFICE SPACE AND 50 RESIDENTIAL DWELLING UNITS, WITHIN THE DOWNTOWN HISTORIC DISTRICT. THE PROJECT INCLUDES A REZONE TO PROVIDE A PLANNED DEVELOPMENT OVERLAY, PERMANENT PRESERVATION OF AN OFF-SITE BUILDING LOCATED AT 868 AND 870 MONTEREY STREET, A NEW DRIVEWAY ALONG MARSH STREET, AND A REQUEST TO ALLOW A MAXIMUM BUILDING HEIGHT OF 75 FEET, WHERE 50 FEET IS THE STANDARD IN THE DOWNTOWN COMMERCIAL ZONE. THE PROJECT INCLUDES A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED JULY 8, 2020 (1144 CHORRO, 868 AND 870 MONTEREY, 876 AND 890 MARSH, 895, 898, 973 HIGUERA STREETS ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019) WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on September 17, 2019, initiating the project in consideration of the proposed Community Benefits and Mandatory Project Features for the Planned Development Overlay, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019, Mark Rawson, applicant; and WHEREAS, the Architectural Review Commission of the City of San Luis Obispo conducted a web based public hearing on June 1, 2020, recommending approval of the project with direction to the Planning Commission for consistency with the Community Design Guidelines, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-2019, & EID-0475- 2019, Mark Rawson, applicant; and WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a web based public hearing on June 22, 2020, recommending approval of the project with direction to the Planning Commission for consistency with the Historic Preservation Program Ordinance, and the Historic Preservation Guidelines, pursuant to a proceeding instituted under ARCH-1687- 2018, PDEV-0509-2019, & EID-0475-2019, Mark Rawson, applicant; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a web based public hearing on July 8, 2020, recommending approval of the project with direction to the City Council for consistency with the Zoning Regulations and General Plan, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019, Mark Rawson, applicant; and Item 16 Packet Page 246 Resolution No. _____ (2020 Series) Page 2 R ______ WHEREAS, the City Council of the City of San Luis Obispo conducted a web based public hearing on August 18, 2020, pursuant to a proceeding instituted under ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019, Mark Rawson, applicant; and WHEREAS, the City Council of the City of San Luis Obispo has duly considered all evidence, including the testimony of the applicant, interested parties, and evaluation and recommendations by staff, presented at said hearing; and WHEREAS, notices of said public hearings were made at the time and in the manner required by law. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings, hereby approving the project (ARCH-1687-2018, PDEV-0509-2019, & EID- 0475-2019): 1. As conditioned, the project will not be detrimental to the health, safety, and welfare of persons living or working at the site or in the vicinity because the project respects site constraints and will be compatible with the scale and character of the neighborhood. 2. The project is consistent with the Zoning Regulations, since the proposed building design complies with all property development standards including height, setbacks, coverage, floor area ratio, and parking for the Downtown-Commercial zone. 3. The project is consistent with the General Plan Land Use Element, because: the proposed retail, office, and residential uses are consistent with uses intended for the Downtown area (Land Use Element Policies 3.8.5, 4.1, and 4.2.1). As designed and conditioned, the project is compatible with historically significant and other existing buildings in the immediate neighborhood (Land Use Element Policies 4.16 and 4.20.4). 4. The project is consistent with General Plan Land Use Element Policy 2.3.1, because the project is located within a half-mile of an existing transit stop, and is proximate to bicycle routes, parks, open space, and commercial uses. 5. The project is consistent with the General Plan Housing Element because the project provides a variety of residential types, sizes, and style of dwellings (Housing Element Goal 5), and encourages the development of housing above ground-level commercial uses (Housing Element 5.3). 6. The project is consistent with the General Plan Conservation and Open Space Element Policy 4.4.3 because the project promotes higher-density, compact housing to achieve more efficient use of public facilities and services and to improve the City’s jobs/housing balance. 7. The project is consistent with Land Use Element Policy 2.3.6 (Housing and Businesses) and 3.8.5 (Mixed Uses) because the project provides residential dwellings within a commercial district near neighborhood commercial centers, major activity nodes, and transit opportunities. Housing at this location is and can be compatible with the proposed and existing commercial uses on-site and on adjacent properties. Item 16 Packet Page 247 Resolution No. _____ (2020 Series) Page 3 R ______ 8. The project is consistent with the Zoning Regulations for Mixed-use Projects (Section 17.70.130) because the proposed building design complies with objective design criteria and performance standards for mixed-use development by orienting the building and residential and nonresidential entries toward the street with sufficient articulation along the street frontage. Architectural Review Findings 9. As conditioned, the project design is consistent with the City’s Community Design Guidelines because the architectural design of the project is compatible with the design and scale of existing structures in the surrounding neighborhood, the project incorporates articulation to minimize massing, visual linkages are provided through building orientation, the proposed design demonstrates use of articulated facades by incorporating textured materials, balconies and decks, and a variety of siding materials (brick and stucco) is proposed to provide texture, relief, and visual interest consistent with the Downtown Design Guidelines and visual character of the neighborhood. 10. The proposed height, mass and scale of the project will not negatively alter the overall character of the neighborhood or the streets’ appearance because the development is designed in a manner that does not deprive reasonable solar access to public sidewalks by stepping back upper levels away from the street frontage. The project incorporates vertical and horizontal wall plan offsets providing a high-quality and aesthetically pleasing architectural design. New Driveway Findings 11. The proposed driveway approach will not harm the general health, safety, and welfare of people living or working in the vicinity of the project site because the number of vehicles expected to use the driveway is limited to seven parking spaces and there are no other alternatives, such as service alleys, to provide vehicle access to the site. Community Benefits Policy Objective Findings 12. As conditioned, the proposed maximum height of 75 feet is appropriate because the project provides more than 10 percent of the residential units as affordable housing for moderate-income households (25 percent; 13 units), and the project utilizes a residential density greater than 36 units per acre (70 units per acre) where the average floor area of the units is less than 1,000 square feet (423 square feet). 13. As conditioned, the project provides open space in the form of a significant public plaza by entering into a public access easement and private maintenance agreement for the existing Downtown Centre, to continue to be open to the public without charge. 14. As conditioned, the project provides for the permanent mode shift towards alternative transportation for building occupants through a Transportation Demand Management Program that achieves modal split objectives of General Plan Circulation Element Policy 1.7.1 (Encourage Better Transportation Habits). Item 16 Packet Page 248 Resolution No. _____ (2020 Series) Page 4 R ______ Floor Area Ratio Exception Findings 15. As conditioned, the project provides for the permanent preservation of the Muzio Building at 868 and 870 Monterey Street as a listed historic resource within the Downtown Historic District, through the recordation of a historic preservation agreement. SECTION 2. Effective Date. This resolution shall take effect (30) days after the final adoption of the Ordinance associated with the rezoning of the subject property from C-D-H to C- D-H-PD (PDEV-0509-2019). SECTION 3. Environmental Review. An Initial Study/Mitigated Negative Declaration (IS/MND) has been prepared in accordance with the California Environmental Quality Act (CEQA) to evaluate the potential environmental effects of the proposed project. The City Council hereby adopts the IS/MND, based on incorporation of the following mitigation measures, which will reduce potential environmental impacts to less than significant. Air Quality AQ-1 During all construction activities and use of diesel vehicles, the applicant shall implement the following idling control techniques: 1. Idling Restrictions Near Sensitive Receptors for Both On- and Off-Road Equipment. a. Staging and queuing areas shall not be located within 1,000 feet of sensitive receptors if feasible; b. Diesel idling within 1,000 feet of sensitive receptors shall not be permitted; c. Use of alternative fueled equipment shall be used whenever possible; and, d. Signs that specify the no idling requirements shall be posted and enforced at the construction site. 2. California Diesel Idling Regulations. On-road diesel vehicles shall comply with Section 2485 of Title 13 of the California Code of Regulations. This regulation limits idling from diesel-fueled commercial motor vehicles with gross vehicular weight ratings of more than 10,000 pounds and licensed for operation on highways. It applies to California and non-California based vehicles. In general, the regulation specifies that drivers of said vehicles: a. Shall not idle the vehicle’s primary diesel engine for greater than 5 minutes at any location, except as noted in Subsection (d) of the regulation; and, b. Shall not operate a diesel-fueled auxiliary power system (APS) to power a heater, air conditioner, or any ancillary equipment on that vehicle during sleeping or resting in a sleeper berth for greater than 5.0 minutes at any location when within 1,000 feet of a restricted area, except as noted in Subsection (d) of the regulation. Signs must be posted in the designated queuing areas and job sites to remind drivers of the 5-minute idling limit. The specific requirements and exceptions in the regulation can be reviewed at the following website: www.arb.ca.gov/msprog/truck- idling/2485.pdf. Item 16 Packet Page 249 Resolution No. _____ (2020 Series) Page 5 R ______ AQ-2 During all construction and ground-disturbing activities, the applicant shall implement the following particulate matter control measures and detail each measure on the project grading and building plans: a. Reduce the amount of disturbed area where possible. b. Use water trucks or sprinkler systems in sufficient quantities to prevent airborne dust from leaving the site and from exceeding APCD’s limit of 20% opacity for no greater than 3 minutes in any 60-minute period. Increased watering frequency shall be required whenever wind speeds exceed 15 miles per hour (mph) and cessation of grading activities during periods of winds over 25 mph. Reclaimed (non-potable) water is to be used in all construction and dust-control work. c. All dirt stockpile areas (if any) shall be sprayed daily and covered with tarps or other dust barriers as needed. d. Permanent dust control measures identified in the approved project revegetation and landscape plans shall be implemented as soon as possible, following completion of any soil disturbing activities. e. Exposed grounds that are planned to be reworked at dates greater than one month after initial grading shall be sown with a fast germinating, non-invasive, grass seed and watered until vegetation is established. f. All disturbed soil areas not subject to revegetation shall be stabilized using approved chemical binders, jute netting, or other methods approved in advance by the APCD. g. All roadways, driveways, sidewalks, etc. to be paved shall be completed as soon as possible. In addition, building pads shall be laid as soon as possible after grading unless seeding or soil binders or soil binders are used. h. Vehicle speed for all construction vehicles shall not exceed 15 m.p.h. on any unpaved surface at the construction site. i. All trucks hauling dirt, sand, soil, or other loose materials, are to be covered or shall maintain at least two feet of freeboard (minimum vertical distance between top of load and top of trailer) in accordance with California Vehicle Code Section 23114. j. Install wheel washers where vehicles enter and exit unpaved roads onto streets, or wash off trucks and equipment leaving the site. Sweep streets at the end of each day if visible soil material is carried onto adjacent paved roads. k. Water sweepers shall be used with reclaimed water where feasible. Roads shall be pre- wetted prior to sweeping when feasible. l. All PM10 mitigation measures required shall be shown on grading and building plans. m. The contractor or builder shall designate a person or persons to monitor the fugitive dust emissions and enhance the implementation of the measures as necessary to minimize dust complaints, reduce visible emissions below the APCD’s limit of 20% opacity for no greater than 3 minutes in any 60 minute period. Their duties shall include holidays and weekend periods when work may not be in progress. The name and telephone number of such persons shall be provided to the APCD Compliance Division prior to the start of any grading, earthwork or demolition. AQ-3 Prior to initiation of demolition/construction activities, the applicant shall retain a registered geologist to conduct a geologic evaluation of the property including sampling and testing for naturally occurring asbestos in full compliance with California Air Resources Board Air Toxics Control Measure (ATCM) for Construction, Grading, Item 16 Packet Page 250 Resolution No. _____ (2020 Series) Page 6 R ______ Quarrying, and Surface Mining Operations (93105) and SLOAPCD requir ements. This geologic evaluation shall be submitted to the City Community Development Department upon completion. If the geologic evaluation determines that the project would not have the potential to disturb asbestos containing materials (ACM), the applicant must file an Asbestos ATCM exemption request with the SLOAPCD. AQ-4 If asbestos containing materials (ACM) are determined to be present onsite, proposed earthwork, demolition, and construction activities shall be conducted in full compliance with the various regulatory jurisdictions regarding ACM, including the ARB Asbestos Air Toxics Control Measure (ATCM) for Construction, Grading, Quarrying, and Surface Mining Operations (93105) and requirements stipulated in the National Emission Standards for Hazardous Air Pollutants (40 CFR 61, Subpart M – Asbestos; NESHAP). These requirements include, but are not limited to, the following: 1. Written notification, within at least 10 business days of activities commencing, to the SLOAPCD; 2. Preparation of an asbestos survey conducted by a Certified Asbestos Consultant; and, 3. Implementation of applicable removal and disposal protocol and requirements for identified ACM. AQ-5 Prior to initiation of demolition/construction activities, the applicant shall implement the following measures to reduce the risk associated with disturbance of ACM and lead-coated materials that may be present within the existing structure onsite: a. Demolition of the on-site structure shall comply with the procedures required by the National Emission Standards for Hazardous Air Pollutants (40 CFR 61, Subpart M – Asbestos) for the control of asbestos emissions during demolition activities. SLOAPCD is the delegated authority by the U.S. EPA to implement the Federal Asbestos NESHAP. Prior to demolition of on-site structures, SLOAPCD shall be notified, per NESHAP requirements. The project applicant shall submit proof that SLOAPCD has been notified prior to demolition activities to the City Community Development Department. b. If during the demolition of the existing structure, paint is separated from the construction materials (e.g., chemically or physically), the paint waste shall be evaluated independently from the building material by a qualified hazardous materials inspector to determine its proper management. All hazardous materials shall be handled and disposed of in accordance with local, state, and federal regulations. According to the Department of Toxic Substances Control (DTSC), if the paint is not removed from the building material during demolition (and is not chipping or peeling), the material can be disposed of as non-hazardous construction debris. The landfill operator shall be contacted prior to disposal of lead-based paint materials. If required, all lead work plans shall be submitted to SLOAPCD at least 10 days prior to the start of demolition. The applicant shall submit proof that paint waste has been evaluated by a qualified hazardous waste materials inspector and handled according to their recommendation to the City Community Development Department. Monitoring Program: Measures AQ-1 and AQ-2 shall be incorporated into project grading and building plans for review and approval by the City Community Development Department. Item 16 Packet Page 251 Resolution No. _____ (2020 Series) Page 7 R ______ Compliance shall be verified by the City during regular inspections, in coordination with the County of San Luis Obispo Air Pollution Control District, as necessary. The applicant shall submit the geologic evaluation detailed in measure AQ-3 to the City Community Development Department upon completion. The applicant shall submit proof of written notification to SLOAPCD as described in measures AQ-4 and AQ-5 to the City Community Development Department. Biological Resources BIO-1 Site preparation, ground-disturbing, and construction activities should be conducted outside of the migratory bird breeding season when feasible. If such activities are required during this period, a qualified biologist shall conduct a nesting bird survey and verify that migratory birds are not nesting in the impact zone. If nesting activity is detected, the following measures shall be implemented: a. The project shall be modified via the use of protective buffers, delaying construction activities, or other methods designated by the qualified biologist to avoid direct take of identified nests, eggs, and/or young protected under the MBTA and/or California Fish and Game Code; b. The Environmental Monitor shall document all active nests and submit a letter report to City Planning staff and the City’s Sustainability Officer documenting project compliance with the MBTA, California Fish and Game Code, and applicable project mitigation measures. Monitoring Program: Compliance with mitigation measures will be reviewed with plans as part of the improvement plans and construction drawings. Compliance will be verified by the Natural Resources Manager in consultation with the Community Development Director, who shall confirm the conclusion and recommendations of the preconstruction nesting bird surveys and provide site inspections as necessary to ensure implementation. Cultural Resources CR-1 Prior to construction activities, a qualified archaeologist shall conduct cultural resource awareness training for all construction personnel including the following: a. Review the types of archaeological artifacts that may be uncovered; b. Provide examples of common archaeological artifacts to examine; c. Review what makes an archaeological resource significant to archaeologists and local native Americans; d. Describe procedures for notifying involved or interested parties in case of a new discovery; e. Describe reporting requirements and responsibilities of construction personnel; f. Review procedures that shall be used to record, evaluate, and mitigate new discoveries; and g. Describe procedures that would be followed in the case of discovery of disturbed as well as intact human burials and burial-associated artifacts. CR-2 A qualified archaeologist monitor shall be present during all project related construction activities that result in disturbance of native soil that may contain archaeological resources. Item 16 Packet Page 252 Resolution No. _____ (2020 Series) Page 8 R ______ CR-3 In the event that historical or archaeological remains are discovered during earth disturbing activities associated with the project, an immediate halt work order shall be issued and the Community Development Director shall be notified. A qualified archaeologist shall conduct an assessment of the resources and formulate proper mitigation measures, if necessary. After the find has been appropriately mitigated, work in the area may resume. A Chumash representative shall monitor any mitigation excavation associated with Native American materials. The conditions for treatment of discoveries shall be printed on all building and grading plans. The City shall review and approve the selected archaeologist, if needed, to ensure they meet appropriate professional qualification standards, consistent with the Archaeological Resource Preservation Program Guidelines. CR-4 In the event that human remains are exposed during earth disturbing activities associated with the project, an immediate halt work order shall be issued, and the Community Development Director shall be notified. State Health and Safety Code Section 7050.5 requires that no further disturbance of the site or any nearby area reasonably suspected to overlie adjacent human remains shall occur until the County Coroner has made the necessary findings as to origin and disposition pursuant to Public Resources Code Section 5097.98. If the remains are determined to be of Native American descent, the coroner shall notify the Native American Heritage Commission within 24 hours. Monitoring Program: These conditions shall be noted on all grading and construction plans. The City shall review and approve the selected archaeologist monitor, to ensure they meet appropriate professional qualification standards, consistent with the Archaeological Resource Preservation Program Guidelines. Noise N-1 For the entire duration of the construction phase of the project, the following Best Management Practices (BMPs) shall be adhered to: 1. Stationary construction equipment that generates noise that exceeds 60 dBA at the project boundaries shall be shielded with the most modern noise control devises (i.e. mufflers, lagging, and/or motor enclosures). 2. Impact tools (e.g., jack hammers, pavement breakers, rock drills, etc.) used for project construction shall be hydraulically or electrically powered wherever possible to avoid noise associated with compressed-air exhaust from pneumatically powered tools. 3. Where use of pneumatic tools is unavoidable, an exhaust muffler on the compressed- air exhaust shall be used. 4. All construction equipment shall have the manufacturers’ recommended noise abatement methods installed, such as mufflers, engine enclosures, and engine vibration insulators, intact and operational. 5. All construction equipment shall undergo inspection at periodic intervals to ensure proper maintenance and presence of noise control devices (e.g., mufflers, shrouding, etc.). N-2 Construction plans shall note construction hours, truck routes, and all construction noise Best Management Practices (BMPs) and shall be reviewed and approved by the City Community Development Department prior to issuance of grading/building permits. Item 16 Packet Page 253 Resolution No. _____ (2020 Series) Page 9 R ______ The City shall provide and post signs stating these restrictions at construction entry sites prior to commencement of construction and maintained throughout the construction phase of the project. All construction workers shall be briefed at a pre-construction meeting on construction hour limitations and how, why, and where BMP measures are to be implemented. N-3 Construction activities shall be conducted so that the maximum noise levels at affected properties will not exceed 80 dBA for multi-family residential and 85 dBA for mixed residential/commercial uses, restaurants, and meeting places. N-4 For all construction activity at the project site, additional noise attenuation techniques shall be employed as needed to ensure that noise levels are maintained within levels allowed by the City of San Luis Obispo Municipal Code, Title 9, Chapter 9.12 (Noise Control). Such techniques shall include, but are not limited to: • Sound blankets shall be used on noise-generating equipment. • Stationary construction equipment that generates noise levels above 65 dBA at the project boundaries shall be shielded with a barrier that meets a sound transmission class (a rating of how well noise barriers attenuate sound) of 25. • All diesel equipment shall be operated with closed engine doors and shall be equipped with factory-recommended mufflers. • The movement of construction-related vehicles, with the exception of passenger vehicles, along roadways adjacent to sensitive receptors shall be limited to the hours between 7:00 A.M. and 7:00 P.M., Monday through Saturday. No movement of heavy equipment shall occur on Sundays or official holidays (e.g., Thanksgiving, Labor Day). • Temporary sound barriers shall be constructed between construction sites and affected uses. N-5 The project contractor shall inform residents and business operators at properties within 300 feet of the project of proposed construction timelines and noise compliant procedures to minimize potential annoyance related to construction noise. Signs shall be in place prior to and throughout grading and construction activities informing the public that noise- related complaints shall be directed to the construction manager prior to the City’s Community Development Department. N-6 All noise-generating rooftop building equipment, such as air conditioners and kitchen ventilation systems, shall be installed away from existing noise-sensitive receptors (i.e., residences) or be placed behind adequate noise barriers. Monitoring Program: These measures shall be incorporated into project grading and building plans for review and approval by the City Community Development Department. Compliance shall be verified by the City during regular inspections. Item 16 Packet Page 254 Resolution No. _____ (2020 Series) Page 10 R ______ Transportation TR-1 Construction Management Plan. Prior to the issuance of each building permit, the construction contractor shall meet with the Public Works department to determine traffic management strategies to reduce, to the maximum extent feasible, traffic congestion and the effects of parking demand by construction workers during construction of this project. The construction contractor will develop a construction management plan for review and approval by the Public Works department. The plan shall include at least the following items and requirements: • A set of comprehensive traffic control measures, including scheduling of major truck trips and deliveries to avoid peak traffic and pedestrian hours, detour signs if required, lane closure procedures, sidewalk closure procedures, signs, cones for drivers, and designated construction access routes. • Notification procedures for adjacent property owners and public safety personnel regarding when major deliveries, detours, and lane closures will occur. • Location of construction staging areas for materials, equipment, and vehicles. • Identification of haul routes for movement of construction vehicles that would minimize impacts on vehicular and pedestrian traffic, circulation and safety; and provision for monitoring surface streets used for haul routes so that any damage and debris attributable to the haul trucks can be identified and corrected by the project applicant. • Temporary construction fences to contain debris and material and to secure the site. • Provisions for removal of trash generated by project construction activity. • A process for responding to and tracking complaints pertaining to construction activity. • Provisions for monitoring surface streets used for truck routes so that any damage and debris attributable to the trucks can be identified and corrected. • It is anticipated that this Construction Traffic Management Plan would be developed in the context of the City Municipal Code Construction and Fire Prevention Regulations and the City of San Luis Obispo 2013 Construction & Fire Codes, which address other issues such as hours of construction onsite, limitations on noise and dust emissions, and other applicable items. Monitoring Program: Prior to building permit issuance the Construction Management Plan shall be submitted to the City Community Development Department and Public Works Department for review. SECTION 4. Action. The project conditions of approval do not include mandatory code requirements. Code compliance will be verified during the plan check process, which may include additional requirements applicable to the project. The City Council hereby approves the project with incorporation of the following conditions: Planning Division 1. Final project design and construction drawings submitted for a building permit shall be in substantial compliance with the project plans approved by the City Council (ARCH-1687- 2018, PDEV-0509-2019, & EID-0475-2019). A separate, full-size sheet shall be included in working drawings submitted for a building permit that lists all mitigation measures, Item 16 Packet Page 255 Resolution No. _____ (2020 Series) Page 11 R ______ conditions and code requirements of project approval listed as sheet number 2. Reference shall be made in the margin of listed items as to where in plans requirements are addressed. Any change to approved design, colors, materials, landscaping, or other conditions of approval must be approved by the Director or Architectural Review Commission, as deemed appropriate. 2. The project shall demonstrate compliance with all mitigation measures and conditions, applicable to the project site, established under the Planned Development Overlay Ordinance and associated Mitigated Negative Declaration (PDEV-0509-2019, EID-0475-2019). 3. Plans submitted for a building permit shall call out the colors and materials of all proposed building surfaces and other improvements, which shall be in substantial conformance with the exterior elevations approved by the City Council. The applicant shall note the use of smooth finish stucco on the building plans and all other details of the exterior materials, including final colors and textures, shall be reviewed and approved by the Community Development Director. 4. Plans submitted for a building permit shall incorporate the design considerations as described at the ARC hearing on June 1, 2020, the final designs of the proposed project shall be modified to incorporate the following items, subject to the satisfaction of the Community Development Director: • The columns and cornice along the 45-degree corner element shall be modified to provide more refined detailing that draws in attention. • The residential gate feature shall be redesigned to be congruous with the surroundings, consider pattern that is of a finer grain. • The landscaping planters along the upper level terrace shall be scaled down in keeping with the character of downtown. • The cornice along the third floor shall be modified to provide greater detailing that presents greater prominence. • The design shall include greater detailing and refinement of brick detailed elements. • The design of the bulkheads and spandrels shall consider a more contrasting color or tone. • The storefront and street level details shall be of a high-quality design consistent with the intent of the Community Design Guidelines for Downtown Design. 5. Plans submitted for a building permit shall include recessed window details and all other details including but not limited to awnings, and railings. Plans shall indicate the type of materials for the window frames and mullions, their dimensions, and colors. Plans shall include the materials and dimensions of all lintels, sills, surrounds recesses and other related window features. Plans shall demonstrate the use of high-quality materials for all design features that reflect the architectural style of the project and are compatible with the neighborhood character, to the approval of the Community Development Director. 6. Prior to building permit issuance, the applicant shall submit an application and receive approval for the installation of public art as part of the project rather than paying the in-lieu fee (Municipal Code §17.32.030.E.5.b.(2).(g)), or prior to occupancy of the building subject to the approval of the Community Development Director. Public art shall be installed prior to occupancy of the building. Item 16 Packet Page 256 Resolution No. _____ (2020 Series) Page 12 R ______ 7. Prior to building permit issuance, the applicant shall pay Parking In-lieu fees and record a Parking In-lieu Fee Agreement, or prior to occupancy of the building subject to the approval of the Community Development Director. Preliminary estimates indicate that the project will be subject to in-lieu fees for 39 parking spaces for new construction. 8. Prior to the issuance of a building permit, the applicant shall provide a Transportation Demand Management Plan to reduce vehicle trips to and from the property, the plan shall clearly identify the responsibility for monitoring and reporting the progress of the Transportation Demand Management Plan to the satisfaction of the Community Development Director and the Transportation Division. The Transportation Demand Management Plan shall include clearly defined, measurable, and verifiable performance measures, and identify how they will be monitored/measured by the City Transportation Division. 9. Prior to issuance of a building permit, the applicant shall record an Offer to Dedicate Pedestrian Easement covenant for the irrevocable and perpetual access for the general public to use and access the Downtown Centre as a public plaza. The covenant shall identify the responsibilities for private maintenance and public access of the Downtown Centre, subject to the satisfaction of the Community Development Director. 10. Prior to issuance of a building permit, the applicant shall record a historic preservation agreement that provides for the permanent preservation of the Muzio Building at 868 and 870 Monterey Street as a listed historic resource within the Downtown Historic District, subject to the satisfaction of the Community Development Director. 11. The locations of all lighting, including bollard style landscaping or path lighting, shall be included in plans submitted for a building permit. All wall-mounted lighting fixtures shall be clearly called out on building elevations included as part of working drawings. All wall - mounted lighting shall complement building architecture. The lighting schedule for the building shall include a graphic representation of the proposed lighting fixtures and cut-sheets on the submitted building plans. The selected fixture(s) shall be shielded to ensure that light is directed downward consistent with the requirements of the City’s Night Sky Preservation standards contained in §17.70.100 of the Zoning Regulations. 12. Mechanical and electrical equipment shall be located internally to the building or shall be fully screened. With submittal of working drawings, the applicant shall include sectional views of the building, which clearly show the sizes of any proposed condensers and other mechanical equipment. If any condensers or other mechanical equipment is to be placed on the roof, plans submitted for a building permit shall confirm that parapets and other roof features will adequately screen them. A line-of-sight diagram may be required to confirm that proposed screening will be adequate. This condition applies to initial construction and later improvements 13. The storage area for trash and recycling cans shall be screened from the public right -of-way. The subject property shall be maintained in a clean and orderly manner at all times; free of excessive leaves, branches, and other landscape material. The applicant shall be responsible for the clean-up of any landscape material in the public right-of-way. Item 16 Packet Page 257 Resolution No. _____ (2020 Series) Page 13 R ______ 14. A final landscaping plan, including irrigation details and plans, shall be submitted to the Community Development Department along with working drawings. The legend for the landscaping plan shall include the sizes and species of all groundcovers, shrubs, and trees with corresponding symbols for each plant material showing their specific locations on plans. 15. The location of any required backflow preventer and double-check assembly shall be shown on all site plans submitted for a building permit, including the landscaping plan. Construction plans shall also include a scaled diagram of the equipment proposed. Where possible, as determined by the Utilities Director, equipment shall be located inside the building within 20 feet of the front property line. Where this is not possible, as determined by the Utilities Director, the back-flow preventer and double-check assembly shall be located in the street yard and screened using a combination of paint color, landscaping and, if deemed appropriate by the Community Development Director, a low wall. The size and configuration of such equipment shall be subject to review and approval by the Utilities and Community Development Directors. 16. The design of the proposed structure shall incorporate site planning measures and noise attenuating construction techniques that reduce noise exposure to acceptable levels. Exposure in outdoor activity areas must not exceed 65 dB and indoor exposure must not exceed 45 dB consistent with the City’s Noise Ordinance. Plans submitted for construction permits must clearly indicate and describe noise attenuation measures, techniques, and materials, and demonstrates their compliance with noise levels limits. 17. Prior to building occupancy, the owner of the property shall provide a Residential Noise Notice in writing for residential occupants stating that the property is located within a commercial zone in an urban-type environment and that noise levels may be higher than a strictly residential area. 18. Prior to demolition of the existing structure, the plaques commemorating the Riley’s Department Store employees shall be retained and incorporated into the f inal project design, subject to the satisfaction of the Community Development Director. 19. Demolition of the existing building shall not commence until a permit has been issued by the building official. The applicant shall comply with §15.04 Construction and Fire Prevention Regulations, Appendix Chapter A2 Demolition and Moving of Buildings, including but not limited to, the following: the applicant shall provide evidence that for a period of not less than 90 days from date of permit application, the building was advertised in a local newspaper on at least 3 separate occasions not less than 15 days apart, as available to any interested person to be moved, and submit historic documentation for the structure. 20. Any new proposed signage shall be reviewed by the Community Development Department to ensure appropriateness for the site and compliance with the Sign Regulations. Signage shall coordinate with building architecture and the type of land use. The Community Development Director may refer signage to the Architectural Review Commission if it seems excessive or out of character with the project. Item 16 Packet Page 258 Resolution No. _____ (2020 Series) Page 14 R ______ Affordable Housing – Community Development 21. Prior to issuance of building permits, the city and the project owners shall enter into an Affordable Housing Agreement, to be recorded in the office of the county recorder. The agreement shall specify mechanisms or procedures to assure the continued affordability and availability of the moderate income households resulting in 25 percent of all proposed units as affordable (13 units) consistent with the provisions and requirements under the Zoning Regulations (§17.138), to the satisfaction of the Community Development Director. Engineering Division – Public Works/Community Development 22. The building plan submittal shall include a complete plan of the existing and proposed surface and utility improvements within the public right-of-way. The plan shall include an inventory of all existing improvements including signs, utility meters, curb painting, striping, and parking meters. The plan shall include an inventory and proposed disposition for all furniture and public improvements to be replaced, retained, reinstalled, or disposed. 23. Plans submitted for a building permit shall identify the final parking space delineations, signage, striping, limits of red curb, and metered spaces on the plans and shall be approved by the Public Works Department. 24. The building plans shall show all existing survey monumentation and shall clarify to protect in place or to be replaced. The existing United States Geological Survey (USGS) monument per City Benchmark System point 8 shall be retained unless otherwise approved for replacement. 25. Projects involving the substantial remodel of existing structures requires that complete frontage improvements be installed or that existing improvements be upgraded per City Standard (§12.16.050), subject to the satisfaction of the Public Works Director. 26. This property is located in the Mission Style Sidewalk District. All sections of new, altered, or replaced curb, gutter, sidewalk, curb ramps, or driveway approaches shall be constructed in the Mission Style per City Engineering Standards. Because of the extent of requir ed demolitions, new utilities, and existing damaged or displaced curb, gutter, and sidewalk, the entire Chorro and Marsh street frontages shall be upgraded to replace the standard concrete with new curb, gutter, and sidewalk. 27. Existing and new meter vaults and tree wells shall be upgraded per City Engineering Standards and reflected on the building plan submittal. The existing trees shall include new tree well frames and grates if the root structure will accommodate a grate. Any alternate tree well design for the existing trees to remain shall be approved to the satisfaction of the Public Works Department. 28. The project public improvements shall include the installation of new Pedestrian Level Streetlights along the Chorro and Marsh street frontages per City Engineering Standards and the approved streetlight layout plan. The final streetlight locations and spacing shall consider the existing streetlight locations, the location of existing infrastructure, the trees to remain, and proposed trees. The number and location of streetlights shall be approved by the Public Works Department. Item 16 Packet Page 259 Resolution No. _____ (2020 Series) Page 15 R ______ 29. The building plan submittal shall show all existing and proposed work within the public right - of-way. The building plan submittal shall show and note the required floor level at all new doorways/landings per American with Disabilities Act (ADA) and California Building Code requirements. The plans shall include a detailed topographic survey to show the finish floor elevations and adjoining sidewalk elevations. The City may support the potential use of the public sidewalk to help provide the required level landings by varying the curb heights along the respective street frontages, subject to the satisfaction of the Public Works Director. The plan shall include details of the existing sidewalk transition from the 8” curb along Chorro starting near 1122 Chorro. 30. The building plan submittal shall clearly show and note any replacement waterproofing or construction required along the new secondary access/egress walkway to Chorro along the interface with the Wineman Building/1122 Chorro. Modifications to the adjoining building may require a separate permit. 31. The building plan submittal shall include a complete site utility plan. All existing and proposed utilities along with utility company meters shall be shown. Existing underground services shall be shown along with any proposed alterations or upgrades. All work in the public right-of-way shall be shown or noted. The final details of the private stormdrain connection to the p ublic system shall be approved by the Public Works Department. A separate inspection port or cleanout may be required to differentiate between the public and private systems. 32. A separate encroachment agreement may be required for any private improvements that are approved for location within the public right-of-way. 33. The applicant shall verify that the existing roof drainage systems, basement drains, or sumps are not connected to the sanitary sewer system to the satisfaction of the Utilities Department. Any existing inflow or infiltration shall be corrected with proper permits upon discovery. 34. The building plan submittal shall show all required short-term and long-term bicycle parking (§17.72.070, Table 3-6), and in accordance with standards contained in the 2013 Bicycle Transportation Plan, 2010 Community Design Guidelines, and any project-specific conditions to the satisfaction of the Community Development Department. Include details and detail references on the plans for the proposed bicycle parking facilities and/or racks. The building plans shall provide a detailed site plan of any racks. Show all dimensions and clearances to obstructions per City Standard. The project summary shall include the required and proposed bicycle parking accordingly: • Short-term bicycle racks such as “Peak Racks” shall be installed in close proximity to, and visible from, the main entry into the building (inverted “U” rack designs shall not be permitted). Dimension the minimum clearances between racks shall be per City standards/adopted guidelines. • Long-term bicycle parking may consist of lockers installed either within or outside the building. As an alternative, a lockable room within the building(s) labeled and reserved for bicycle storage may substitute for bicycle lockers. Provide details and specs for bicycle lockers to the satisfaction of the Planning Division. Short-term and long-term bicycle parking areas shall accommodate bicycle parking storage space for cargo style bicycles, the bicycle storage room or other long-term bicycle storage shall provide electric vehicle charging equipment. Item 16 Packet Page 260 Resolution No. _____ (2020 Series) Page 16 R ______ 35. Provisions for trash, recycle, and food waste containment, screening, and collection shall be approved to the satisfaction of the City and San Luis Obispo Garbage Company. The respective refuse storage area and on-site conveyance shall consider convenience, aesthetics, safety, and functionality. Ownership boundaries and/or easements shall be considered in the final design. Any common storage areas shall be maintained by a Property Owner’s Association or other property maintenance agreement. The applicant shall provide a copy of any existing, amended, or new agreement regarding solid waste management within the off-site alley/containment area. 36. This property is located within a designated flood zone as shown on the Flood Insurance Rate Map (FIRM) for the City of San Luis Obispo. As such, any new or substantially- remodeled structures and all new building service equipment shall comply with all Federal Emergency Management Agency (FEMA) requirements and the City’s Floodplain Management Regulations (§17.78). 37. This property is located in an AO (two-foot depth) Flood Zone; the water surface or base flood elevation (BFE) of a 100-year storm is two feet above adjacent grade. The structure must be flood proofed to an elevation that is at least one foot above the BFE or three feet above the highest adjacent grade. Additional freeboard to two feet above the BFE may result in additional structure protection and savings on flood insurance and is strongly encouraged. 38. The building plan submittal shall show all proposed floodproofing, floodgate storage areas, utility protections, etc. The building plan submittal shall include a reduced floor plan showing and noting the location and type of floodgates and the labeled floodgate storage area/room. The plan will be forwarded to the Fire Department for inclusion in their records for recurring fire inspections. 39. All conduits and penetrations into the building shall be sealed against the intrusion of floodwater. A backwater valve shall be provided on the sanitary sewer to protect from backflow of a surcharged public sewer. Floors or fixtures not requiring protection shall bypass the valve in accordance with the California Plumbing Code. The backwater valve shall be located outside of the public right-of-way. 40. FEMA Elevation and Floodproofing certificates shall be provided at the completion of construction. 41. Improvements located within the public right-of-way or easement areas shall be shown on the building plan submittal for reference. A separate encroachment permit will be required from the Public Works Department for any work or construction staging located within the public right-of-way or public easement areas. 42. A construction staging and management plan shall be provided to the City and approved prior to demolition, new construction, and encroachment permit issuance. The plan shall be in accordance with ADA, City Engineering Standards, established guidelines, policies, and specifications. The plan shall be approved to the satisfaction of the Public Works and Community Development departments. The plan may be provided for each phase of construction and shall include any proposed sidewalk, parking lane, or traffic lane closures. Unless otherwise approved by the City, sidewalks shall remain open to through pedestrian traffic with diversions or pedestrian protection structures. Item 16 Packet Page 261 Resolution No. _____ (2020 Series) Page 17 R ______ 43. The applicant, developer, or contractor of record shall provide a list of businesses that could be affected by traffic or construction impacts to the City for acceptance. The list shall include the City and the Downtown Association. Notices shall be provided to the listed contacts about construction impacts, phasing, and project timing prior to commencing with any demolitions or construction. 44. The building plan submittal and supporting documentation shall show and note compliance with the Post Construction Stormwater Regulations as promulgated by the Regional Water Control Board per Resolution 2013-0032 and any updates to the stormwater codes and standards in effect at the time of development. Stormwater Control Measures (SCM’s) shall not be located within the public rights-of-way unless specifically approved by the City Engineer. The drainage report and Stormwater Control Plan shall clarify whether this project meets the minimum Urban Sustainability Area requirements for the Downtown Commercial area. 45. The stormwater control plan and analysis shall include the limits of altered or replaced public sidewalk. The report and plans shall show and note compliance with all applicable Performance Requirements. The stormwater control measure for Performance Requirement 2 shall include Measure 1: Harvesting, infiltration, and/or evapotranspiration before defaulting to Measure 2 or 3. 46. The City supports the proposed tree removals with the compensatory tree planting as shown on the proposed development plans. Unless otherwise waived by the Public Works Department, the new trees shall be irrigated by the on-site water service piping and irrigation controllers. 47. The applicant may consider festoon tree lighting improvements for the existing or proposed new trees. If proposed, the lighting systems and attachments shall be in accordance with City Standards, policies, and guidelines consistent with the existing Downtown tree lighting program. 48. Tree protection measures shall be implemented to the satisfaction of the City Arborist. The City Arborist shall review and approve the proposed tree protection measures prior to commencing with any demolition, grading, or construction. The City Arborist shall approve any safety pruning, the cutting of substantial roots, or grading within the dripline of trees. A City-approved arborist shall complete safety pruning. Any required tree protection measures shall be shown or noted on the building plans. Building Division – Community Development 49. Construction plans submitted for Building permits shall be designed in accordance with the applicable codes in effect at time of submittal. Review of the general information provided for entitlement is cursory and does not guarantee code compliance for a future construction submittal. Item 16 Packet Page 262 Resolution No. _____ (2020 Series) Page 18 R ______ Utilities Department 50. The proposed utility infrastructure shall comply with the latest engineering design standards effective at the time the building permit is obtained and shall have reasonable alignments needed for maintenance of public infrastructure along public roads. 51. Per Section 7 of the City’s Engineering Design Standards, the applicant shall provide a comparison of the existing and proposed sewer generations prior to building permit issuance. 52. The project plumbing calculations shall be used to size the sewer lateral and included in the design narrative and utility plan, prior to building permit issuance. 53. Plans submitted for a building permit shall demonstrate how the project will connect their sewer lateral to the existing six-inch VCP sewer main along Chorro Street, to the west of the project site, with 4” or 6” diameter laterals. 54. Plans submitted for a building permit shall indicate whether commercial uses in the project include food preparation, provisions for grease interceptors and FOG (fats, oils, and grease) storage within solid waste enclosure(s) shall be provided with the design. These types of facilities shall also provide an area inside to wash floor mats, equipment, and trash cans. The wash area shall be drained to the sanitary sewer. 55. Per Section 6 of the City’s Engineering Design Standards, provide a comparison of the existing and proposed water generations, prior to building permit issuance. 56. Building permit submittal shall clarify size of existing and proposed water services using a topographic survey and the new site layout map with proposed water meter sizes per the City’s Engineering Standards. 57. The project’s commercial and residential uses shall be meter ed separately. A City owned master meter shall serve the residential units that are each sub-metered with private meters. Plans submitted for a building permit shall include the CCR’s for the property management/homeowner association and shall require that the sub-meters be read by the association (or P/HOA contracted service). 58. All plans submitted for a building permit shall be consistent with the most recent fire protection design narrative, including the layout and design of the fire riser room stamped and signed by a licensed Fire Engineer. A private fire pump and surge tank shall be installed in order to provide the residual pressures and flows required by the fire protection design narrative. The surge tank shall be designed to have a pressure sustaining mechanism such that surge forces don’t impinge back into the public water main. The fire system point of connection shall be made along the existing 8” fire main on Marsh Street. The 8” main can be upsized by the development between Chorro and Morro if additional capacity is required by the fire protection design narrative, and must be to the satisfaction of the Utilities Director. 59. The approved fire protection design narrative shall include the fire flow rate(s) (gpm) and pressures that will be going through the fire pump based on the proposed fire floor area per NFPA requirements and the City of San Luis Obispo design standards, prior to building permit issuance. Item 16 Packet Page 263 Resolution No. _____ (2020 Series) Page 19 R ______ 60. Plans submitted for a building permit shall include a landscape documentation package per CCR Title 23 MWELO 492.3. 61. The project’s estimated total water use (ETWU) to support new ornamental landscaping shall not exceed the project’s maximum applied water allowance (MAWA). Information shall be submitted during the Building Permit Review Process for review and approval by the Utilities Department prior to issuance of a Building Permit to support required water demand of the project’s proposed landscaping, following the City’s calculator. 62. Plans submitted for a building permit shall describe how recycled water will be used for major construction activities, such as grading and dust control as required under §17.70.220 (Prohibited Water Uses). Recycled water is available through the City’s Construction Water Permit program. 63. Projects generating more than two cubic yards of total waste shall comply with AB 1826, and local waste management ordinance to reduce greenhouse gas emissions. Plans submitted for a building permit shall include a trash enclosure capable of storing the required bins for waste, recycling, and organics, subject to the satisfaction of the Utilities Director. 64. The building permit submittal shall include trash enclosure details as required by the City’s Development Standards for Solid Waste Services. The alley to the north of the project site is used for trash services. The project shall not disrupt the current trash services that utilize this alleyway. 65. There are existing city fiber lines within the street right of way adjacent to the west and south side of the project. Plans submitted for the project’s frontage improvements shall include provisions to adjust and/or replace existing city owned utilities per the Engineering Design Standards and to the satisfaction of the Utilities Director including, but not limited to: fiber cables, splice boxes, pull boxes, water valves, water mains, and service laterals that interfere as a result of the relocation. Transportation Division – Public Works 66. Plans submitted for the project’s frontage improvements shall replace signal poles and mast arm pole assemblies at the intersection of Chorro and Marsh Street in conjunction with sidewalk replacement, subject to the satisfaction of the Public Works Director. New signal poles shall conform with current City and Caltrans Standards and locate to current ADA standards. 67. Plans submitted for the project’s frontage improvements shall demonstrate how the traffic signal at Marsh and Chorro will conform with ADA requirements for audible pedestrian push- button assemblies and count-down pedestrian signals. Installation shall conform to MUTCD and City Standards. 68. Applicant shall submit a separate public improvement plan (PIP) set showing above signal upgrades from conditions the conditions mentioned above. Traffic signal upgrade design shall comply with the latest MUTCD and Caltrans design standards at the time the building permit is obtained. Item 16 Packet Page 264 Resolution No. _____ (2020 Series) Page 20 R ______ 69. Plans submitted for PIP shall provide details that replace stamped concrete crosswalk at intersection of Chorro and Marsh Streets with brick paver crosswalk, to conform to ADA and City Engineering Standards, to the satisfaction of the Public Works Director. 70. Plans submitted for a building permit shall provide details of the vehicle exit from the parking area onto Marsh Street that demonstrates adequate sightlines of pedestrians on adjacent sidewalk per City Engineering Standards, subject to the satisfaction of the Public Works Director. 71. Plans submitted for a building permit, shall include a construction phasing plan and proposed traffic handling plan during construction as a part of the building plan submittal, subject to the satisfaction of the Public Works and Community Development Directors. Item 16 Packet Page 265 Resolution No. _____ (2020 Series) Page 21 R ______ Indemnification 72. The applicant shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this project, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”). The City shall promptly notify the applicant of any Indemnified Claim upon being presented with the Indemnified Claim and the City shall fully cooperate in the defense against an Indemnified Claim. Upon motion of ______________________, seconded by ________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this _____ day of __________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: _____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________________________ J. Christine Dietrick IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, _______________________. ____________________________________ Teresa Purrington City Clerk Item 16 Packet Page 266 1144 CHORRO STREET MIXED USE Parking Demand Reduction and Management Plan July 15, 2019 This document describes the management of parking demand and supply at the Chorro Street mixed-use project, located at 1144 Chorro Street. It includes details on the management of the building’s parking area as well as potential measures that may be implemented to reduce parking demand associated with the project, helping to curtail impacts to parking supply in neighboring streets and garages. 1. Management of the Parking Structure The 1144 Chorro parking garage is designed to hold a minimum of approximately 7 cars, including 1 accessible van space. The primary parking use is intended for car sharing spaces. Depending on demand it is anticipated that 3 or 4 parking spaces will be used for car share spaces. In addition to the car share spaces, 2 or 3 spaces will be designated for short term use only, which will allow for pick up and drop off use. A clear messaging program via email, brochures for tenants, and signage (located in the garage and in office area employee break-rooms), will inform office employees and residents of the parking program, ensuring that they have access to available information on parking and transportation options. The property management team will also have information on alternative transportation options for tenants, including information on bus and train service. 2. Measures to Minimize the Project’s Off-Site Parking Impacts Property management will also strive to minimize the project’s off-site parking impacts through a number of potential parking demand reduction strategies. Currently those strategies include the following: SHOWERS AND LOCKERS Shower and locker changing room facilities for employees who ride their bikes to work, helping make bicycling a more attractive mode of travel. Item 16 Packet Page 267 BIKE PARKING Secure on-site bicycle parking for all employees and residents, ensuring those who bike do not have to worry about bicycle theft. MAPS AND INFORMATION Transportation information posted in the office area employee break rooms with up-to-date information on transit services in the area, including schedules and service area maps, ridesharing, bicycle maps, and information on other alternative transportation options. · AREA INFORMATION PACKETS The dissemination of a welcome packet for new employees and residents, containing transportation information relevant to the area. The project will also implement other parking demand reduction strategies as necessary. Potential tools under consideration include the following: The provision of loaner and rental bikes for office employees allowing employees to run errands on breaks without the need for a car. Encouraging the use of ride-matching service through local ridesharing programs. Offering transit pass and/or ridesharing subsidies. 3. Identification of a Project Parking Manager A Project Parking Manager will be identified once the property opens for business and occupancy. The Manager will have authority over all parking spaces in the structure, will implement and oversee parking demand reduction programs, and will serve as a contact point for City staff. The Project Parking Manager shall be identified by the property manager to the Community Development Director. Item 16 Packet Page 268 MEMORANDUM DATE: August 18, 2020 TO: City Council BY: Kyle Bell, Associate Planner FROM: Michael Codron, Community Development Director SUBJECT: Item #PH2 ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019 (1144 Chorro) – A summary and evaluation of the comments from the Council Initiation and Advisory Body hearings. DISCUSSION On September 17, 2019 the City Council provided the following direction to assist staff with the processing of the applications for the project: • The application of a PD Overlay zone is an appropriate method for implementation of the City Council’s goal for higher density housing in the Downtown; • The Mandatory Project Features required for consideration of establishment of the PD Overlay zone and the Community Benefits Policy Objectives required for consideration of the proposed building height of 75 feet are appropriate and in alignment with the scope of the project given the priority that the City Council has placed on new housing in the Downtown. • Direct staff to move forward with priority processing of the project through the entitlement process, including environmental review pursuant to the California Environmental Quality Act (CEQA). The Council also provided direction to the applicant to consider incorporating the Community Benefit ‘Mode Shift’ for further consideration of the maximum building height, and requested that the applicant return for final action with a proforma that ensure that no less than 25% of the units can be dedicated as affordable housing. The applicant has incorporated the Mode Shift Community Benefit into the project and will be presenting the proforma to the City Council for consideration of the final action on the project that will describe how the project will provide for the 13 affordable units (25%). Condition No. 8 has been incorporated into the draft resolution to require a Transportation Demand Management Plan (TDMP) to reduce vehicle trips to and from the property, the plan shall clearly identify the responsibility for monitoring and reporting the progress of the TDMP. Item 16 Packet Page 269 ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019 (1144 Chorro) Memorandum: Council Initiation and Advisory Body Comments Summary Page 2 ARC Directional Items On June 1, 2020, the ARC identified nine comments and recommendations, and references to specific Community Design Guidelines (CDG) that required further consideration by the Planning Commission (PC) prior to the Commission making a recommendation to the City Council and final action on the project. ARC Directional Item #1: The PC should consider effects on viewsheds, including views of Cerro San Luis, as seen from intersections. Response: The ARC expressed concerns regarding the view of Cerro San Luis from the crosswalk along Marsh Street that leads to the Downtown Centre (see Visual Study on Sheet T3.5, of the Project Plans). The project plans identify that the proposed structure does obstruct a portion of the view of Cerro San Luis from the crosswalk. However, the City’s General Plan Land Use Element Policy 4.17. (New Buildings and Views) states that: Downtown development nearby publicly- owned gathering places shall respect views of the hills. In other locations Downtown, views will be provided parallel to the street right-of-way, at intersections where building separation naturally makes more views available, and at upper-level viewing decks. The viewshed along the crosswalk at Marsh Street is not a location identified by the General Plan that would require further protections for viewsheds because this view is perpendicular to the street right-of-way. ARC Directional Item #2: The PC should consider CDG 2.2.F (coordinate the new with the old) for compatibility with listed historic properties in the immediate vicinity. Response: The CDG Section 2.2.F states that when new construction is proposed on a site with existing structures that are to be retained, the new work should be designed to coordinate with old structures that have architectural and/or historic value. This particular section of the CDG is specific to structures that are on the same site, and not relevant to this specific project. Regardless, the CHC agenda report provided further consideration of the project as it relates to surrounding historic properties. The CHC report from the June 22, 2020 hearing, identified that the applicant had revised the project design to incorporate architectural details and features that are consistent with the character of the district, inclusive of: transom windows along the store frontage, window mullions with brick and stucco headers, metal awnings, concrete bulkheads, detailed cornices, and outdoor sitting areas. Furthermore, the SWCA Historic Preservation Report concluded that the project complies with the City’s Historic Preservation Program Guidelines (HPPG) and with the Secretary of the Interior’s Standards for the Treatment of Historic Properties by incorporating numerous design elements that are considered to be compatible with adjacent and nearby architectural styles and materials within the Historic District. On June 22, 2020 the CHC found the project to be consistent with the City’s Historic Preservation Ordinance (HPO) and HPPG, as discussed further in the section below (CHC Directional Items). ARC Directional Item #3: The project could be improved for consistency with CDG 4.2.C (façade design and wall surfaces), by providing more well-defined and detailed column elements, tone or color of pre-cast elements (bulkhead and spandrels), and the corner angled façade elements such as columns and cornices should be re-evaluated for more refined detailing that draws in attention and makes it feel special. Item 16 Packet Page 270 ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019 (1144 Chorro) Memorandum: Council Initiation and Advisory Body Comments Summary Page 3 ARC Directional Item #4: The project should reconsider the residential gate feature as shown on Sheet T1.1 and T1.2 to be congruous with surroundings, consider revisiting patterning that is finer grained. ARC Directional Item #5: The landscaping plantings along the terrace, Sheet L1.1, could be scaled down to be more in keeping with character of downtown, consider the County Government Center as an example. ARC Directional Item #6: The cornice along the third floor should be redesigned to provide further prominence. ARC Directional Item #7: Further consideration should be provided for refinement of brick detailed elements. ARC Directional Item #8: Provide more contrasting color of bulkhead and spandrel above the windows. ARC Directional Item #9: Provide quality design at the street level. Response: During the hearing the applicant agreed with the ARC that the project could be improved with consideration of the items discussed, the ARC intended to provide these comments for further consideration by the PC before requiring any modifications to the project plans. Staff has incorporated ARC directional items 3 through 9 into the draft resolution for consideration by the PC to be further refined and incorporated into the project during the building permit review process. Condition No. 4 states that: Plans submitted for a building permit, shall incorporate the design considerations as described at the ARC hearing on June 1, 2020, the final designs of the proposed project shall be modified to incorporate the following items, subject to the satisfaction of the Community Development Director: • The columns and cornice along the 45-degree corner element shall be modified to provide more refined detailing that draws in attention. • The residential gate feature shall be redesigned to be congruous with the surroundings, consider pattern that is of a finer grain. • The landscaping planters along the upper level terrace shall be scaled down in keeping with the character of downtown. • The cornice along the third floor shall be modified to provide greater detailing that presents greater prominence. • The design shall include greater detailing and refinement of brick detailed elements. • The design of the bulkheads and spandrels shall consider a more contrasting color or tone. • The storefront and street level details shall be of a high-quality design consistent with the intent of the Community Design Guidelines for Downtown Design. The applicant has made modifications to the project plans in response to the ARC and PC direction, see Figure 1. The project plans include the following changes: Item 16 Packet Page 271 ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019 (1144 Chorro) Memorandum: Council Initiation and Advisory Body Comments Summary Page 4 • Improved transition between cornice and raised corner element, inclusive of an elliptical decorative feature outlined with decorative brick, see Figure 1. • Refined residential gate feature modified with a lower panel, the design has been revised to be congruous with surroundings and a finer grain pattern (Project Plans Sheet T1.2). • Upper level landscaping and planters have been scaled down, see Figure 1. • The cornice has been modified to provide greater prominence, the cornice material has been replaced with a precast design that provides greater contrast between the brick and the upper level stucco design, see Figure 1. • Herringbone panels have been added as decorative elements to the façade, as well as a soldier course of brick in line with the third-floor window heads (Project Plans Sheet T2.1). • The bulkheads and spandrels have been darkened to provide greater contrast between elements (Project Plans Sheet T2.1). • The street level details have been refined to provide greater detail including the addition of decorative tile at the window bulkheads and along the storefront openings (Project Plans Sheet T2.1). CHC Directional Items On June 22, 2020, the CHC found the project consistent with the HPPG and provided a recommendation that requires further consideration by the PC, prior to the Commission making a recommendation to the City Council and final action on the project. Figure 1: Original corner element (right), revised corner element based on ARC direction (left) Item 16 Packet Page 272 ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019 (1144 Chorro) Memorandum: Council Initiation and Advisory Body Comments Summary Page 5 CHC Directional Item #1: The top three stories should be changed to brick facing material to match the lower three stores to de-emphasize the height of the building. Response: The CHC communicated concerns with the transition of materials from the area above the third level from brick to stucco. The CHC referenced examples of modern architecture used in projects with historic structures, similar to the example shown in Figure 2. The CHC suggested that the project mimics the treatment of historic properties and that the project could be improved and in keeping with the character of the Downtown Historic District if the stucco material was changed to brick facing material to match the lower three stories. However, there are limited examples of brick structures that step back along the upper levels. Traditional brick style architecture historically provides a prominent presence along the street frontage for the entire face of the building, (see example shown in Figure 3). While downtown buildings have a variety of materials and architectural details, several consistent themes in these aspects of design in the downtown have helped to define its distinctive character. The CDG state that tall buildings should provide appropriate techniques to assure that tall buildings respect the context of their setting and provide appropriate visual transition to adjacent structures by maintaining a distinction between the lower and upper floors that will reinforce the typical rhythm of traditional commercial buildings, and use color to visually reduce the size, bulk and scale of a building. The proposed change of the stucco material to brick may conflict with the intent of the CDG, and due to the building form and required upper story step backs, the use of brick between all floors is not consistent with the architectural style for brick buildings or consistent with trends in contemporary architecture. No evidence is available that supports the notion that the use of brick along the upper levels would be successful in de-emphasizing the height of building, rather the use of heavy materials such as brick would likely bring attention to the upper levels and potentially result in an emphasis of the building height and prominence. Furthermore, the transition between stucco and brick materials is consistent with several other existing structures throughout the Downtown Historic District, such as the adjacent Downtown Centre, Court Street Development, Morro Street Parking Garage, Hotel Cerro, and Marsh Street Commons. Figure 2: CHC example of upper level modern additions Figure 3: Example of traditional brick style architecture Item 16 Packet Page 273 ARCH-1687-2018, PDEV-0509-2019, & EID-0475-2019 (1144 Chorro) Memorandum: Council Initiation and Advisory Body Comments Summary Page 6 PC Directional Items On July 8, 2020, the PC reviewed the project and unanimously recommended that the Council find the project consistent with the Zoning Regulations and General Plan policies, with minor changes to the draft resolution conditions regarding bicycle parking racks and clarification on the private maintenance agreement for the Downtown Centre, for further consideration by the City Council prior to final action on the project. Condition 9 (dedication of pedestrian easement in Downtown Centre): modify second sentence as follows: The covenant shall identify the responsibilities for private maintenance and public access of Downtown Centre, subject to the satisfaction of the Community Development Director. Condition 34 (bicycle facilities): modified to eliminate the option for inverted U style bicycle racks, and to provide for the installation of electric bicycle parking stations, and bicycle parking spaces that accommodate the size of cargo style bicycles. Item 16 Packet Page 274 Department Name: Utilities Cost Center: 601 For Agenda of: August 18, 2020 Placement: Public Hearing Estimated Time: 20 Minutes FROM: Aaron Floyd, Director of Utilities Prepared By: Mychal Boerman, Deputy Director - Water Jennifer Metz, Utilities Project Manager SUBJECT: AMENDMENT TO GENERAL PLAN, LAND USE ELEMENT AND WATER AND WASTEWATER MANAGEMENT ELEMENT RECOMMENDATION As recommended by the Planning Commission, adopt a Resolution (Attachment A) approving an Addendum to the Land Use and Circulation Element (LUCE) Update EIR (SCH #2013121019) and Water and Wastewater Management Element Negative Declaration (EID 1455-2018) and amendments to the City’s Land Use Element and Water and Wastewater Management Element (WWME) of the General Plan (GENP-0188-2020). DISCUSSION Background In 2014, the City added Policy 1.13.2 to the Land Use Element as part of the update to the General Plan. The existing policy states: Provision of recycled water outside of City limits may only be considered in compliance with Water and Wastewater Element Policy A 7.3.4 and the following findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development potential of property being served. C. Non-potable/recycled water will not be further treated to make it potable. D. Prior to provision of non-potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while recycled water is being provided. The findings included in the policy are consistent with Government Code § 56000, the Cortese- Knox-Hertzberg Local Government Reorganization Act1, which exempts the provision of non- potable water, including recycled water. 1 The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 is the section of the State Government Code (Government Code §§ 56000 et seq) that provides the Local Agency Formation Commission (LAFCO) with its authority, procedures, and functions. It establishes procedures for local government changes of organization, including city incorporations, annexations to a city or special district, and city and special district consolidations. Item 17 Packet Page 275 Land Use Element Policy 1.13.2 references Water and Wastewater Management Element, Program A 7.3.4, which states: Consider the potential to deliver available recycled water supplies to customers outside the city limits, including analysis of policy issues, technical concerns, and cost recovery, provided it is found to be consistent with the General Plan. In Policy 1.13.2 both non-potable water and recycled water are mentioned, however Program 7.3.4 references only recycled water. Non-potable water, also referred to as raw water, is water supplied from one of the City’s surface water reservoirs (Whale Rock, Salinas, or Nacimiento) or groundwater, that has not been treated to drinking water standards. Recycled water is highly treated wastewater supplied from the City’s Water Resource Recovery Facility delivered through a non-potable water distribution system for landscape irrigation and other restricted uses. At a Study Session on March 5, 2019 (Attachment B), the City Council supported broadening the existing language in Policy 1.13.2 in the Land Use Element and Program A7.3.4 in the Water and Wastewater Management Element to consider delivery of both non-potable and recycled water supplies outside the City limits through short-term water supply contracts. Proposed General Plan Amendments In line with City Council direction from March 5, 2019, staff prepared amendments to the Land Use Element and Water and Wastewater Management Element and an Addendum to LUCE Update EIR (SCH # 2013121019) and Water and Wastewater Management Element Negative Declaration (EID 1455-2018). The General Plan Amendments were presented to the City’s Planning Commission on May 13, 2020 (Attachment B). The Commission proposed the addition of finding “E” to Land Use Element, Policy 1.13.2, as shown above. Proposed amendments are shown below as bold and underlined text. Proposed General Plan, Land Use Element, Policy 1.13.2: Provision of non-potable or recycled water outside of City limits may only be considered in compliance with Water and Wastewater Element Policy A 7.3.4 and the following findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development potential of property being served. C. Non-potable/recycled water will not be further treated to make it potable. D. Prior to provision of non-potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while non- potable/recycled water is being provided. E. Provision of non-potable and recycled water will not impair the City’s ability to maintain an adequate water supply that meets projected water demand at buildout under the General Plan including the required reliability reserve. Item 17 Packet Page 276 Proposed General Plan, Water and Wastewater Management Element, Program A 7.3.4: Consider the potential to deliver available non-potable or recycled water supplies to customers outside the city limits, including analysis of policy issues, technical concerns, and cost recovery, provided it is found to be consistent with the General Plan. The Planning Commission approved Resolution PC-1009-20 (Attachment C) including an Addendum to LUCE Update EIR (SCH # 2013121019) and Water and Wastewater Management Element Negative Declaration (EID 1455-2018) and an amendment to the City’s General Plan Land Use Element and Water and Wastewater Management Element (GENP-0188-2020). Previous Council or Advisory Body Action The City conducted the following meetings with associated actions as it relates to the proposed General Plan amendments: 1. March 5, 2019 – City Council reviewed its policy for water deliveries outside of the City and directed staff to return with a General Plan amendment to clarify that outside users may receive non-potable water and recycled water. 2. May 13, 2020 – The Planning Commission approved Resolution PC-1009-20 recommending the City Council adopt amendments to the Land Use Element and Water and Wastewater Management Element of the General Plan and Addendum to the LUCE Update EIR (SCH # 2013121019) and Water and Wastewater Management Element Negative Declaration (EID 1455-2018) . Policy Context WWME Program A2.3.1 addresses the collaborative nature of staff’s water resource planning work stating that the City will “Work cooperatively on regional water issues and water resource planning (Water Resource Advisory Committee, Whale Rock Commission, Groundwater Sustainability Commission, etc.).” Public Engagement At a Study Session on March 5, 2019, the City Council supported broadening the existing language in Policy 1.13.2 in the Land Use Element and Program A7.3.4 in the Water and Wastewater Management Element to consider delivery of both non-potable and recycled water supplies outside the City limits through short-term water supply contracts. On May 13, 2020, the Planning Commission approved a resolution recommending the City Council adopt amendments to the Land Use Element and Water and Wastewater Management Element of the General Plan related to broadening an existing policy and program related to delivering both recycled water and non-potable water outside the city limits. Item 17 Packet Page 277 Native American groups that have a cultural and traditional affiliation with the City have been formally noticed that amendments are proposed to the City’s Land Use Element and Water and Wastewater Management Element to broaden existing Land Use Element, Policy 1.13.2 and Water and Wastewater Management Element, Program A 7.3.4 to include both the City's non - potable water and recycled water supplies2. No modification to the proposed General Plan amendments were requested as a result of the tribal consultation. The proposed General Plan Amendments have also been made available on the City’s website. CONCURRENCE The City’s Community Development Department concurs with the recommendation in th is report. ENVIRONMENTAL REVIEW In compliance with the California Environmental Quality Act (CEQA), staff prepared an Addendum to the LUCE Update EIR and 2018 Negative Declaration for the Water and Wastewater Management Element update (EID 1455-2018) to analyze the potential environmental impacts of the proposed amendment. That analysis is provided with Resolution in Attachment A. FISCAL IMPACT Budgeted: No Budget Year: 2020-21 Funding Identified: No Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Water Fund N/A Total N/A The recommended action to amend the General Plan will not have a fiscal impact on the City’s Water Fund. Future contracts for sale of non-potable water or recycled water outside the City would be considered by the City Council and incorporated into the Fund’s annual revenue assumptions accordingly. 2 Government Code §65352.3 requires local governments to consult with tribes prior to the adoption or amendmen t of a general plan or specific plan proposed on or after March 1, 2005 Item 17 Packet Page 278 ALTERNATIVES 1. Continue Consideration of the General Plan Amendments – The City Council could continue consideration of the proposed amendments to the Land Use Element and Water and Wastewater Management Element. Council should provide staff with direction on changes or additional information needed to decide on this item. 2. Do Not Adopt the Resolution to Amend the General Plan – The City Council could elect to not adopt the Resolution at this time. Direction should be provided to staff if there are changes to the proposed General Plan Amendments that would be sufficient to gain the support of a majority of Council Members. Attachments: a - Draft Resolution b - COUNCIL READING FILE - Planning Commission Report dated 05/13/2020 c - Planning Commission Resolution No. PC-1009-20 Item 17 Packet Page 279 R ______ RESOLUTION NO. _________ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING AMENDMENTS TO THE LAND USE ELEMENT AND WATER AND WASTEWATER MANAGEMENT ELEMENT OF THE GENERAL PLAN (GENP-0188-2020) AND ACCEPTING AN ADDENDUM TO THE LAND USE AND CIRCULATION ELEMENT (LUCE) UPDATE EIR AND WATER AND WASTEWATER MANAGEMENT ELEMENT NEGATIVE DECLARATION (CITYWIDE, GENP-0188-2020) WHEREAS, State law requires cities and counties to adopt a General Plan; and WHEREAS, the Land Use Element of the San Luis Obispo City General Plan was last updated in 2014 in compliance with State law; and WHEREAS, Water and Wastewater Management Element of the San Luis Obispo City General Plan was last updated in 2018 in compliance with State law; and WHEREAS, the City of San Luis Obispo has prepared amendments to the General Plan Land Use Element and Water and Wastewater Management Element to broaden existing policy and program language to include both non-potable and recycled water supplies, and WHEREAS, the potential environmental impacts of the amendments to Land Use Element and Water and Wastewater Management Element have been evaluated in accordance with the California Environmental Quality Act pursuant to an Addendum to the Land Use and Circulation Element (LUCE) Update EIR and Water and Wastewater Management Element Negative Declaration; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing on May 13, 2020, pursuant to a proceeding instituted under GENP-0188-2020, City of San Luis Obispo, applicant; and WHEREAS, the Planning Commission of the City of San Luis Obispo adopted Resolution PC-1009-20 recommending the City Council adopt Amendments to the Land Use Element and Water and Wastewater Management Element of the General Plan (GENP-0188-2020) and accepted an Addendum to the Land Use and Circulation Element (LUCE) Update EIR and Water and Wastewater Management Element Negative Declaration (Citywide, GENP-0188- 2020); and WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: Item 17 Packet Page 280 Resolution No. _____ (2020 Series) Page 2 R _____ SECTION 1. Finding. The City Council, after considering the project (GENP-1088- 2020), environmental determination, staff recommendations, public testimony and correspondence, and reports thereon, finds that proposed amendments to the Land Use Element and Water and Wastewater Management Element are consistent with the General Plan. SECTION 2. Environmental Review. In compliance with the California Environmental Quality Act (CEQA), staff prepared an Addendum to the Land Use and Circulation Element (LUCE) Update EIR and Water and Wastewater Management Element Negative Declaration to analyze the potential environmental impacts of the proposed amendments. The City Council hereby approves the Addendum (Exhibit A). SECTION 3. Approval of the 2020 Land Use Element and the 2020 Water and Wastewater Management Element. The City Council hereby adopts the amendments to the 2020 Land Use Element and the 2020 Water and Wastewater Management Element, as set forth in Exhibit A attached hereto and incorporated herein by this reference. Upon motion of Council Member __________________, seconded by Council Member _______________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________, 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ______________________________________ Teresa Purrington, City Clerk Item 17 Packet Page 281 Resolution No. _____ (2020 Series) Page 3 R _____ Exhibit A: Amendments to the Land Use Element and Water and Wastewater Management Element of the General Plan (GENP-0188-2020) and Addendum to the Land Use and Circulation Element (LUCE) Update EIR and Water and Wastewater Management Element Negative Declaration (Citywide, GENP-0188-2020) Amendments to the Land Use Element and Water and Wastewater Management Element of the General Plan (GENP-0188-2020) The proposed General Plan amendments to Land Use Element Policy 1.13.2 and Water and Wastewater Management Element (WWME) Program A 7.3.4. are as follows (Bold and underlined text is used to highlight proposed language): Land Use Element Policy 1.13.2: Provision of non-potable or recycled water outside of City limits may only be considered in compliance with Water and Wastewater Element Policy A 7.3.4 and the following findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development potential of property being served. C. Non-potable/recycled water will not be further treated to make it potable. D. Prior to provision of non-potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while non-potable/recycled water is being provided. E. Provision of non-potable and recycled water will not impair the City’s ability to maintain an adequate water supply that meets projected water demand at buildout under the General Plan including the required reliability reserve. Water and Wastewater Management Element, Program A 7.3.4: Consider the potential to deliver available non-potable or recycled water supplies to customers outside the city limits, including analysis of policy issues, technical concerns, and cost recovery, provided it is found to be consistent with the General Plan. Item 17 Packet Page 282 Resolution No. _____ (2020 Series) Page 4 R _____ Addendum to the Land Use and Circulation Element Final Environmental Impact Report (SCH# 2013121019) and to the Water and Wastewater Management Element Negative Declaration (EID 1455-2018) City File No: GENP-0188-2020 1. Project Title: Non-Potable Water Deliveries Outside the City 2. Lead Agency Name and Address: City of San Luis Obispo, Utilities Department 879 Morro Street San Luis Obispo, CA 93401 3. Contact Person and Phone Number: Jennifer Metz, Utilities Project Manager Office: 805-781-7239, Cell: 805-748-1335 4. Project Location: Citywide 5. Project Representative Name Jennifer Metz, Utilities Project Manager and Address: City of San Luis Obispo, Utilities Dept. 879 Morro Street San Luis Obispo, CA 93401 6. General Plan Designation: N/A 7. Zoning: N/A 8. Description of the Project: The proposed General Plan amendments consist of broadening language of Land Use Element Policy 1.13.2 and Water and Wastewater Management Element (WWME) Program A 7.3.4. to include the potential for non-potable water deliveries outside the City limits. Bold and underlined text is used to highlight proposed language. Land Use Element Policy 1.13.2: Provision of non-potable or recycled water outside of City limits may only be considered in compliance with Water and Wastewater Element Policy A 7.3.4 and the following findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development potential of property being served. C. Non-potable/recycled water will not be further treated to make it potable. Item 17 Packet Page 283 Resolution No. _____ (2020 Series) Page 5 R _____ D. Prior to provision of non-potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while non-potable/recycled water is being provided. E. Provision of non-potable and recycled water will not impair the City’s ability to maintain an adequate water supply that meets projected water demand at buildout under the General Plan including the required reliability reserve. Water and Wastewater Management Element, Program A 7.3.4: Consider the potential to deliver available non-potable or recycled water supplies to customers outside the city limits, including analysis of policy issues, technical concerns, and cost recovery, provided it is found to be consistent with the General Plan. 9. Project Entitlements Requested: N/A 10. Setting and Surrounding Land Uses: N/A 11. Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement.): None 12. Previous Environmental Review On December 9, 2014, the City Council certified the Land Use and Circulation Element (LUCE) Update EIR. Council Resolution No. 10586 includes the findings and mitigation measures that apply to the LUCE Update. Land Use Element Policy 1.12.1 regarding the City’s practice of not providing water service outside of the city, was modified as part of the 2014 LUCE Update. The policy language changed specifies that potable water shall not be provided beyond the city limits but would allow recycled water and/or non‐potable water to be provided outside the city limits where specific findings can be made. Land Use Element Policy 1.12.1 states: 1.12.1 Water and Sewer Service. The City shall not provide nor permit delivery of City potable water or sewer services to the following areas. However, the City will serve those parties having valid previous connections or contracts with the City. A. Outside the City limits; B. Outside the urban reserve line; C. Above elevations reliably served by gravity‐flow in the City water system; D. Below elevations reliably served by gravity‐flow or pumps in the City sewer system. Moreover, the 2014 LUCE Update EIR evaluated the potential environmental impacts of providing recycled water outside of the City limits, which is the same potential impact caused by the proposed amendment to Land Use Element Policy 1.13.12. The f indings and mitigation measures from the 2014 LUCE EIR are still in effect and will apply to this project. Therefore, preparation of a subsequent EIR is not necessary for the proposed amendment to Land Use Element Policy 1.13.12 because it does not result in any new significant environmental effects or a substantial increase in the severity of any previously identified significant effects evaluated in the 2014 LUCE Update EIR with the amendment of Land Use Element Policy 1.12.1. Item 17 Packet Page 284 Resolution No. _____ (2020 Series) Page 6 R _____ On May 18, 2018, the City Council approved a Negative Declaration (EID 1455-2018) for the 2018 Amendment to General Plan, Chapter 8, Water and Wastewater Management Element (Council Resolution No. 10893). The 2018 update to the WWME, with the substantial reduction in safe annual yield from Whale Rock and Salinas Reservoirs, considered whether the City could meet future water demand. The 2018 Initial Study/Negative Declaration associated with the 2018 WWME update found that consideration of delivery of recycled water outside the City limits was still a viable program. As stated in the 2018 Negative Declaration, the City continues to have an adequate water supply to meet projected water demand of 57,200 residents at 117 gpcd, a 20 percent reliability reserve, and over 1,000-acre feet as a secondary water supply. The proposed modification to Program A 7.3.4 to include the potential for non-potable water deliveries for agriculture would utilize existing infrastructure and would not result in any impacts to the environment. Thus, the proposed Amendment does not involve new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Further, the addition of the word “non-potable” to WWME Program A 7.3.4 is simply a minor technical addition to a program that already contemplates the potential delivery of recycled water outside City limits. Section 15164 of the State CEQA Guidelines allows a lead agency to prepare an addendum to a EIR or Negative Declaration when "minor technical changes or additions" have occurred in the project description since the EIR was certified. In addition, the lead agency is required to explain its decision not to prepare a subsequent EIR pursuant to State CEQA Guidelines Section 15162, which requires subsequent EIRs when proposed changes would require major revisions to the previous EIR "due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects." No new environmental effects are created by the proposed project and there is no increase in the severity of previously identified significant effects. DETERMINATION In accordance with Section 15164 of the State CEQA Guidelines, the City of San Luis Obispo has determined that this addendum to the LUCE Update EIR and WWME Negative Declaration is necessary to document changes or additions that have occurred in the project description since the EIR was certified in 2014 and the Negative Declaration was approved in 2018. No issue areas are affected by the proposed project. The preparation of a subsequent EIR is not necessary because: None of the following circumstances included in Section 15162 of the CEQA Guidelines have occurred which require a subsequent EIR: a. The project changes do not result in new or more severe environmental impacts. b. The circumstances under which the project is undertaken will not require major changes to the EIR or Negative Declaration. c. The modified project does not require any substantive changes to previously approved mitigation measures. Item 17 Packet Page 285 Resolution No. _____ (2020 Series) Page 7 R _____ Referenced Documents Available Electronically: 1. Council Resolution No. 10586, 2014 Series, certifying the LUCE Update EIR: https://opengov.slocity.org/WebLink/DocView.aspx?id=26685&dbid=0&repo=CityClerk 2. Land Use and Circulation Element Update Environmental Impact Report (Final Program EIR, September 2014): https://www.slocity.org/home/showdocument?id=6719 3. Council Resolution No. 10893, 2018 Series, approving a Negative Declaration for the 2018 Amendments to the Water and Wastewater Management Element: https://opengov.slocity.org/WebLink/DocView.aspx?id=77736&dbid=0&repo=CityClerk Item 17 Packet Page 286 Item 17 Packet Page 287 Item 17 Packet Page 288