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HomeMy WebLinkAbout01-14-2020 Agenda Packet Tuesday, January 14, 2019 4:00 PM CLOSED SESSION Council Hearing Room 990 Palm Street 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 PUBLIC COMMENT ON CLOSED SESSION ITEMS CLOSED SESSION A: CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 Agency Negotiators: Monica Irons, Nickole Sutter, Rick Bolanos, Derek Johnson, Christine Dietrick Represented Employee Organizations: San Luis Obispo City Employee’s Association (SLOCEA) San Luis Obispo Police Officer’s Association (POA) San Luis Obispo Police Staff Officer’s Association (SLOPSOA) International Association of Firefighters Local 3523 Unrepresented Employees: Unrepresented Management Employees Unrepresented Confidential Employees B: CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9. No. of potential cases: Two; Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: No. of potential cases: Two. A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The existing facts and circumstances exposing the City to litigation include the following: San Luis Obispo City Council Agenda January 14, 2020 Page 2 San Luis Obispo Page 2 Dispute between the City and the owner of real property located at 3595 Sueldo regarding a previously unaccepted offer to dedicate right of way pursuant to the Subdivision Map Act, Tract 703 as recorded in Book 10 of Maps at Page 50 on October 31, 1980, and validity of acceptance of right of way for public road purposes; and a related assertion of liability by the owner of an adjacent property (Sullivan, Tentative Tract 3009/Minor Subdivision SLO 17- 0107) against the City for unspecified damages allegedly resulting from the unaccepted offer. Correspondence regarding these issues is available for review in the City Clerk’s Office located at 990 Palm Street. C: CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9. No. of potential cases: One. A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The existing facts and circumstances exposing the City to litigation include the following: A letter has been received from Robert Goodman, Attorney at Law, on behalf of his client Jamie Gomez, asserting that the City of San Luis Obispo’s method of conducting elections may violate the California Voting Rights Act. Pursuant to California law, Mr. Goodman demanded that the City Council adopt a resolution within 45 days of receipt of the letter outlining its intention to transition from at-large to district elections and specifying specific steps it will take to facilitate this transition. The deadline for the City Council to adopt a resolution to this effect would have been the end of December, but on November 26, 2019 a Standstill Agreement was entered into extending the deadline to January 31, 2020. If a resolution has not been adopted by the January 31 deadline, then Mr. Goodman asserts legal action will be commenced in San Luis Obispo County Superior Court to require the City of San Luis Obispo to institute district elections pursuant to the California Voting Rights Act. D: CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9. No. of potential cases: Two. A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The existing facts and circumstances exposing the City to litigation include the following: On September 3, 2019, the City Council adopted the Clean Energy Choice Program with the second reading of the related ordinances planned for the September 17, 2019, Council meeting. San Luis Obispo City Council Agenda January 14, 2020 Page 3 On September 13, 2019, the City received correspondence from legal counsel representing the Utility Workers Union of America Local 132 alleging violations of conflict-of-interest rules related to the ordinances, which was followed by notification of a formal complaint being filed with the California Fair Political Practices Commission (“FPPC”) against Councilmember Pease. The September 13, 2019, letter is on file with the City Clerk. On September 20, 2019, the City requested formal advice from the FPPC on behalf of Councilmember Pease and a majority of the City Council regarding the application of the commission’s statutes, rules and regulations concerning the City’s adoption of the Clean Energy Choice Program. On October 12, 2019, the City was notified that the FPPC would not be providing advice as requested. On October 28, 2019, the City requested formal advice from the FPPC on behalf of just a majority of the City Council regarding the application of the commission’s statutes, rules and regulations concerning the City’s adoption of the Clean Energy Choice Program. On November 14, 2019, the FPPC issued a formal letter declining to provide advice as requested. That November 14, 2019, letter is on file with the City Clerk. Additionally, the City has received correspondence dated October 1, 2019, from Saro G. Rizzo, Attorney at Law, expressing concerns with the City’s Clean Energy Choice Program ordinances. The October 1, 2019 letter is on file with the City Clerk. All letters on file are available for review in the City Clerk’s Office located at 990 Palm Street. Adjourn to the Rescheduled Regular City Council Meeting scheduled for Tuesday, January 14, 2020 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo. Tuesday, January 14, 2020 6:00 PM REGULAR MEETING Council Chamber 990 Palm Street San Luis Obispo Page 4 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 PLEDGE OF ALLEGIANCE: Council Member Andy Peast PRESENTATIONS 1.PRESENTATION FROM THE COUNTY OF SAN LUIS OBISPO REGARDING THE 2020 CENSUS (Kristin Erikson/Morgan Torrell – 20 MINUTES) APPOINTMENTS 2.COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS 2020 (PURRINGTON – 5 MINUTES) Recommendation: Approve Council Liaison Subcommittee assignments for the calendar year of 2020. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (not to exceed 15 minutes total) The Council welcomes your input. You may address the Council by completing a speaker slip and giving it to the City Clerk prior to the meeting. At this time, you may address the Council on items that are not on the agenda. Time limit is three minutes. 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 January 14, 2020 Page 5 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. 3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation Waive reading of all resolutions and ordinances as appropriate. 4. MINUTES REVIEW - DECEMBER 3, 2019 CITY COUNCIL MEETING (PURRINGTON) Recommendation: Approve the minutes of the City Council meeting held on December 3, 2019. 5. 2019 WATER RESOURCES STATUS REPORT (BOERMANN/METZ) Recommendation: Receive and file the City’s 2019 Water Resources Status Report. 6. LAGUNA LAKE 2020 MAINTENANCE DREDGING PROJECT, SPECIFICATION NO. 91392 (STANWYCK/BURDE) Recommendation: 1. Approve the Project Plans and Special Provisions for the Laguna Lake 2020 Maintenance Dredging 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 $380,000. 7. REQUEST FOR PROPOSAL FOR MARKETING SERVICES FOR THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT (HERMANN/CANO) Recommendation: As recommended by the Tourism Business Improvement District (TBID) Board: 1. Authorize the issuance of a Request for Proposals (RFP) for contract services for tourism marketing services; and 2. Authorize the City Manager to award the contract if proposals are within the project budget of $1,000,000. San Luis Obispo City Council Agenda January 14, 2020 Page 6 8. SECOND READING OF ORDINANCE NO. 1673 (2019 SERIES) AMENDING SECTION 9.10.070 (HERMANN/BAILEY) Recommendation: Adopt Ordinance No. 1673 entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending the Municipal Code Public Peace, Morals And Welfare (Chapter 9.10) Regulations for Commercial Cannabis Business Businesses and Personal Cultivation” clarifying unsuccessful applicants’ ability to apply during separate application periods in the same year. 9. AUTHORIZE AIR POLLUTION CONTROL DISTRICT GRANT APPLICATION TO SUPPORT ELECTRIC VEHICLE CHARGERS AT CITY HALL (HERMANN/READ) Recommendation: 1. Authorize the City Manager, or his designee, to execute and file grant applications with the Air Pollution Control District (APCD) for electric vehicle charging and to execute any related grant applications, certifications, assurances, forms, agreements, and associated documents on behalf of the City; and 2. Authorize the City Manager to approve a Budget Amendment Request to increase the budget reflecting these grant funds, if awarded. PUBLIC HEARING AND BUSINESS ITEMS 10. PUBLIC HEARING - EXPANSION OF THE EXISTING MONTEREY HEIGHTS RESIDENTIAL PARKING PERMIT DISTRICT AND THE ESTABLISHMENT OF THE DANA STREET RESIDENTIAL PARKING PERMIT DISTRICT (STANWYCK/BOCHUM/FUCHS – 30 MINUTES) Recommendation: 1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, modifying the Residential Parking Permit District for the Monterey Heights area of the City, establishing days and hours of operation of said district and time of renewal for a parking permit” to include residential properties located on 10-400 blocks of Buena Vista Avenue. 2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, establishing the Residential Parking Permit District for the Dana Street area of the City, establishing days and hours of operation of said district, and time of renewal for a parking permit” for the 400-500 blocks of Dana Street. San Luis Obispo City Council Agenda January 14, 2020 Page 7 11. PUBLIC HEARING - INTRODUCE AN ORDINANCE AMENDING DESIGNATED PORTIONS OF THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE SECTION 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE CHAPTER 3.04 – TRANSIENT OCCUPANCY TAX (ELKE/HARNETT – 30 MINUTES) Recommendation: Introduce an Ordinance entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Sections 3.04.020, Section 3.04.080, Section 3.04.090, Section 3.04.100 and Section 3.04.130 of Municipal Code Title 3.04 – Transient Occupancy Tax” to revise action to collect applicable tax assessments and to clarify the process to appeal. 12. MIOSSI OPEN SPACE CONSERVATION PLAN (HERMANN/HILL – 45 MINUTES) Recommendation: Approve a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Miossi Open Space Conservation Plan and adoption of a Negative Declaration.” 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, January 21, 2020 at 6:00 PM in the Council Chamber, 990 Palm Street, San Luis Obispo, California. San Luis Obispo City Council Agenda January 14, 2020 Page 8 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. RECEIVED JAN O 6 2020 SLO CITY CLE:R.K 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546-8208 • FAX (805) 546-8641 PROOF OF PUBLICATION (20 I 5 .5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, l am a citizen of the United States and a resident of the county aforesaid; l am over the age of eighteen years. and not a party interested in the above entitled matter. 1 am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: Patricia Horton. New Times Legals Atlmin & l'<:rs,)nal l•N f'MO AJmi11.'NTMG OHkl!/AlJ SIN ES SlPublic Nn1icc 5.!Pruor of f>ub Proof of Publication of ORDINANCE NO. 1673 (2019 SERIES) An Ordinance of the City Council of the City of San Luis Obispo, California, amending the Municipal Code Public Peace, Morals and Welfare (Chapter 9.101 Regulations tor Commercial Cannabis Business Businesses and Personal Cultivation NOTICE IS HEREBY GIVEN that ttie City Council of the City of San Luis Obispo, California, at its Regular Meeting al December 3, 2019, introduced the above titled ordinance upon a motion by Council Member Christianson; second by Council Member Pease,.and on the following roll call vote: AYES: Council Member Christianson, Pease, Stewart, Vice Mayor Gomez and Mayor Harmon NOES: None Ordinance No. 1673 (2019 Seriesl -An Ordinance that clarifles that an applicant is not limited to submitting an application only during the annual application period, but if any other application period(sl are opened by the City Manager, the same applicant, previously not recommended for a permit, may submit another application for a contingent operator permit A full and complete copy of the aforementioned Ordinance is available for inspection and copy in the City Clerk's Office, located at 990 Palm Street, San Luis Obispo, California, or you may call (8051781·7100 for more information. NOTICE IS HEREBY FURTHER GIVEN that the City Council of the City of San Luis Obispo will consider adopting the aforementioned Ordinance at its rescheduled Regular Meeting of January 14, 2020 at 6:00 p.m., which will be held in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California . Teresa Purrington City Clerk January 2, 2020 PROOF OF PUBLICATION (2015 .5 C.C.P.) STATE OF CALIFORNIA, Co unty of San Luis Obispo, I a rn a c iti ze n of the Unite d States a nd a res ide nt of th e county aforesa id ; J a m ov er the age of ei g ht e en ye ar s. and not a part y int ere sted in th e ab ove entitl ed m a tter. I a m th e prin c ipal cl e rk. of th e printe 1 of t he Ne \\' Tim es, a newspa per of general circul ati o n, printe d and pub I is hed wee k ly in th e City of Sa n Luis Obi spo . County of San Lui s Obispo , a nd which ha, been adjudged a newspap er of ge neral <.:ir c1ilatio n by the Superior Court of th e County ,>f San Luis Obispo. State of C a lifo rni a, under th e date of February 5, 1993, Case number C V 7'2 789: that notice of whi ch th e a nn exed is a pr inted copy (set in ty pe not sma ll er th an no np a re il ), has been published in eac h reg ular a nd e ntire iss ue of sa id new s paper and not in a ny s uppl e me nt thereof on th e followin g dates , to -wit: _j)ecetvtb~ \--Z, • in th e vt.:a r 2019. l ce rtify (or declare) under the th e penalty of pe rjury that the foregoing is tru e a nd c orre c t. Da ted at Sa n Luis Obi!5:· a lifV{a. this day \"Z. of ~a;M t ,2019. Patricia ortoa . New Tim es Lega ls Adn,1 i\ ,1;:. l'c1""1.1 !'•1'\Tl\Hi .-\Umin,'NT MG 0111 ..:c/lHJ SIN ESS/J'ul1li..: K..:ilk..:)IPr.x,r nl T'u b NOTICE OF INTENT TO ADOPT NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT The The Cily of San Luis Obispo has completed the Draft Initial Study ( Neg al ive Declaration IIS / ND) for the proposed ~ CalllRlllR liPILflnn_as required by the California Environmenlal Qualily Act ICEDA). Tho IS I ND found the project to have a less than significant impact on the environment based on following environmental factors : Aesthetics, Air Quality, Biological Resources, Cultural Resource s, En ergy, Geology and Soils, Greenhouse Gas Emissions, Hazards and Hazardous Materials, Hydrology and Water Quality, Noise, Public Services, Recreation, Transportation, Tribal Cultural Resources, and Wildfire , No potentially significanl or significant impacts were identified . The project is located at the Miossi Open Space property at O Old Stagecoach Road, San Luis Obispo, CA 93401. This notice is provided pursuant to Public Resources Code 21083 and 21087 and CEQA Guidelines 15072 and 15105 . The project site is not included on any of the lists enumerated under Section 65962 5 of lhe Government Code Pe scd atlg n of tho Prooo&Vd Pcoi an t· The project sile is a 266-acre Cily·owned property located north of the City of San Luis Obispo . The property was acquired by the City of San Luis Obispo in 2018 to increase and enhance ava ilable open spa ce, prov iding natural resources and hab itat conservation -opportunities, as well as pass ive recreational trail use. The project site is vacant and consists primarily of rural lands used for grazing, as well as unpaved off-highway roads, and is bisected by lhe UPRR reilroad tracks. The project would implement new single-track trails, connections to Roller Coasters Trail to the north and Poly Canyon Loop Trail to the west, and would make use of a cattle-guard -prolectod undercrossing of the existing UPRR !racks using an existing culvert. Project features, such as a 3' split-rail !railhead entry fence, a lhree-panel informalional kiosk, a bike rack, approximalely 10,000 square feet of informal on-site parking, pet waste "Mutt MittsTM" and waste disposal receptacles, and small-scale safety lighting will be located at lhe front entrance south of Old Sta11ecoach Road. Informational kiosks and trail direction blades wil l be located along the proposed sing le-track trails , and the project sile would be surrounded by a five-strand, wildlife-friendly, cattle perimeter fonce. J\tl recreational amenities would be designed and in stalled in occordonce with the City's slandard specifications identified in the adopt ed Dpen Space Maintenance Plan 12015). The informal parking area wou ld be locat~d in an exist ing disturbed area along Did Stagecoach Road across from t he entry gate, and not require grading or surfacing , The potential off-site connection lo Poly Canyon Loop Trail would traverse approximately 1,500 linear feet of land managed by California Polytechnic University San Luis Obispo. Vehicular access to the project site would be primarily from Old Stagecoach Road, w~h secondary access near the West Cuesta Ridge trailhead, which eccesses Old Siagecoach Road from the north . The requested approvals for the project include adoplion of the Miossi Open Spa ce Conservation Plan, which the City has drafted to implement the conservation objectives associated with the project, The proposed Conservation Plan would designate the project sile as a City Open Space property in accordance with the City 's Open Space Regulations 11996), the Conservat ion Guidelines for Open Space Lands of the Cily of San Lu is Ob ispo (2002), and the Conservation and Open Space Element of lhe City's Gen eral Plan (2006). The Conservation Plan includes goals and policies designed to guide future passive recreational use and management of the property. Conservation Plan policies will guide sensilive resource avoidance during development of recreationa l amenities , includ ing the design and implementation of final trai l alignmenls and amenity locations, as well as long-term maintenan ce of the site , As described in the Conservation Plan, the preservation of environmental re so urces and habitats will be the primary consideration in all management decisions where a choice must be made between preservation of the natural environmental and passive recreational us0. As describ0d in the Conservation Plan, as part of the purcha se arrangements for lhe property the City of San Luis Obispo has agreed to maintain the 'existing grazing rights on the property for a minimum of ten years. Cattle grazing would be protecled b{lhe proposed perimeter fencing and cattle guards protecting the UPRR undercrossing . Reference copies of lhe Miossi Open Space Conservation Plan and the In itial St udy I Negative Declaralion are avai lable al lhe City's Clerk's Office , at 990 Palm S1reet, or by calling Robert Hill at 805-781·7211 . These documents are also be available on the City's website at www slocjty.org . A 30-day public review period for the Negative Declaration will be from Wednesday December 11, 2019 lo Sn1urd1y Jan uary 11 , '2020.Allyono intereste d lo com m~n ting on lhe doc ument a/Jould submit a written sto tom,m110 the City of San Luis Obispo , 990 P Im Srrao t, Son Lula ObiOpo, CA 93401 , Atto ntion : Robert Hill , Sustainability & Natural Resources Official, or by email to rhill@slocity.org by 5:00 p.m .. ~anuary 10, 2020. The San Luis Obispo Cily Council will hold a public hearing on January 14, 2020 to consider the adoption of lhe Miossi Open Space Conservation Plan and the Negative Declaration . Interested persons can access the City Council agenda at httD"llwww slocjtv orgtgavemmaot/mo vor·en d·citv·aouoa itta n~Jt1~-ond·min1.1 1Q1 bogln nlng op Ja~uo ry 1, 2020 10 foco to 1!1 0 Cou ~fl Agen dn Ao po11 end final documents for this project. December 12, 2019 RECEIVED DFC 1 6 r019 SLO c;:TY CLERK HERE) RECEIVED 1010 Marsh Sr,, San Luis Obispo, CA 93401 (805) 546-8208 • FAX (805) 546-8641 JAN O 6 2020 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County nf San Lui :; Obis po, I am a citize n o f the United States and a n:~idtnt uf tlic: county a(ore:,aid; l ~m over tl1e age of eighteen years, and not a party interested in the above entitled matte r. I am the principal clerk of the printer of the Ne11' Times, a newsp ape r o f general circulation, printed and puhl ished weekly in the City of San Luis Obispo. County of San Luis Obispo. and which ha s been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5 , 1993, Case number CV7'2789: that notice of which the annexed is a printe d copy (set in type not s maller than nonpareil), has been published in each regular and entire issue of s aid newspaper a nd not in any s upple m e nt th e reof on the following dates , to-wit: _ _._.:::5'~\)Af:~ L< in th e y e ar 2020 . JJ L c e rtify (or declare) under the the penalty of perjury that the foregoing is true and correct. Date d at San Luis Obispo . C alifornia. this day rz.. of -;s.."'"~(F 2020. ?~J/~ Patricia Horton . New Times L e gals .~ll1 1li11 &. l\:tM)nJ l.'•N r~1G A,l1n111.'N f M(i (lfl ki!1 BUS INESS1r uhli.: Kol ic.:~;l:'muf of l'uh SLO CITY CLERK Proof of Publication of SAN LUIS OBISPO CrTY COUNCIL NOTICE OF PUBLIC HEARING The San Luis Obispo City Council invites all interested persons to attend a public meeting on Tuesday. January 14, 2020, at 8:00 p.m. in the City Hell Council Chamber, 990 Palm Streat. San Lula Obispo. C.lifomi11, to consider the following items: • A Public Hearing to introduce an Ordinance amending Title 3, Chapter 4 (Transient Occupancy Tax) of the Municipal Code to update the appeal process, action to collect. and penalties for unpaid Transient Occupancy Tax. For more information, contact Natalie Harnett of the City's Finance Department at (805) 781-7128 or by email, nhamett@slocity.org • A Public Hearing to consider adopting a Resolution to expand the existing Monterey Heights Residential Parking Permit District to include addresses 70 -495 Buena Vista Avenue, 2102 Loomis Street, 177-198 Pa so Robles Drive, 305 and 308 San Miguel Avenue, 2106 Santa Ynez Avenue, and 295 Santa Maria Avenue. For more information, please contact Parking Services Supervisor, Alexander Fuchs at (8051 781-7553 or by email, afuchs@slocitY:org • A Public Hearing to consider adopting a Resolution ·to establish the Dana Street Residential Parl<ing Permit District to include qualifying addresses 430 -581 Dana Street. For more information, please contact Parking Services Supervisor. Alexander Fuchs at (805) 781-7553 or by email, afuchs@slocity.org. The City Council may also discuss other hearings or business items before or after the items listed above. If you challenge the proposed project in court, you may be limited to raising only ·those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Reports for this meeting will be availablo lo< rG\llew in the City Clerk's Office and online at www.sloclly.o<g no later than 72 hours prior to the meeting, Please call the City Clerk's Office at 18051 781-7100 for more information. The City Council meeting will be televised live on Charter Cable Channel 20 and live streaming on www.slocity.org. Teresa Purrington City Clerk City of San Luis Obispo January 2, 2020 Department Name: Administration Cost Center: 1021 For Agenda of: January 14, 2020 Placement: Appointment Estimated Time: 5 Minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Teresa Purrington, City Clerk SUBJECT: COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS 2020 RECOMMENDATION Approve Council Liaison Subcommittee assignments for the calendar year of 2020. (Attachment A) DISCUSSION Every year Council Members submit their list of requested Subcommittee assignments. Mayor Harmon and Vice Mayor Gomez reviewed the past several years’ appointments and recommend the Council Liaison Subcommittee assignments in Attachment A. As in past years, automatic rotation for all technical and regional committees is not being recommended. The recommended appointments allow for continuity where appropriate as well as permitting Council Members to develop a higher level of expertise for some of the more complex committees. Policy Context Council Policies and Procedures and the Advisory Body Handbook prescribe the method of Council Liaison Subcommittee assignments: The Mayor and Vice Mayor shall submit recommendations to the full Council rotating nominations for Council Member Subcommittees, thereby ensuring an opportunity for each member to serve as liaison at least once on each advisory body when possible. When terms of office do not allow each member to serve once, members with greatest seniority shall have first right of selection (CP&P 6.5.2, ABH III, C, 6). Council Policies and Procedures defines the role, purpose and attendance of the Council Liaison as: Council liaisons do not serve as ex-officio members of the advisory bodies, but rather as a conduit to express the position of the Council and to gain a better understanding of the issues considered by the advisory body. (CP&P 6.1.2) The purpose of the liaison assignment is to facilitate communication Packet Page 1 Item #2 between the Council and advisory body. (CP&P 6.1.3) From time to time, attend advisory body meetings for observation purposes only. Liaison members should be sensitive to the fact that they are not participating members of the advisory body but are there rather to create a linkage between the City Council and advisory body. (CP&P 6.1.6) Public Engagement This is an administrative item to implement existing adopted policies and thus no outside public engagement was completed on these appointments. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at 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: 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 are no new fiscal impacts associated with the Council Liaison Subcommittee assignments. ALTERNATIVES Council may decide to forego the recommendations of the Mayor and Vice Mayor and request changes to the Council Liaison Subcommittee assignments. Attachments: a - 2020 COUNCIL SUBCOMMITTEE ASSIGNMENTS Packet Page 2 Item #2 Revised 12-11-2018 COUNCIL SUBCOMMITTEE ASSIGNMENTS 2019 and 2020 CITY ADVISORY BODIES • Interviews & makes recommendations for appointments to the full Council. • Facilitates communication between Council and committees. 2019 CHAIR MEMBER 2020 CHAIR MEMBER Active Transportation Committee Gomez Harmon Christianson Harmon Administrative Review Board Stewart Harmon Stewart Harmon Architectural Review Commission Pease Gomez Pease Gomez Construction Board of Appeals Gomez Harmon Gomez Harmon Citizens’ Revenue Enhancement Oversight Commission Stewart Gomez Stewart Gomez Cultural Heritage Committee Christianson Pease Christianson Pease Housing Authority (Mayor by state mandate) Harmon N/A Harmon N/A Human Relations Commission Harmon Stewart Harmon Stewart Investment Oversight Committee (This is not an advisory committee) Harmon N/A Harmon N/A Jack House Committee Stewart Gomez Stewart Gomez Mass Transportation Committee Pease Christianson Pease Christianson Parks & Recreation Commission Christianson Pease Christianson Pease Personnel Board Harmon Stewart Harmon Stewart Planning Commission Pease Christianson Pease Christianson Promotional Coordinating Committee Gomez Stewart Gomez Stewart Tourism Business Improvement District Board Gomez Stewart Gomez Stewart Tree Committee Pease Christianson Pease Gomez SPECIAL PURPOSE SUBCOMMITTEES Serves as liaison representative. 2019 CHAIR MEMBER 2020 CHAIR MEMBER Cal Poly Campus Planning Committee (Master Plan) (Quarterly) Gomez N/A Gomez N/A City/University (Mayor/Rotation) (Quarterly) Harmon Rotation Harmon Rotation Downtown Association Board (Monthly) Gomez Stewart Gomez Stewart Economic Vitality Corporation (Monthly) (Liaison only) Stewart N/A Stewart N/A Mayor’s Advisory Body Quarterly Meeting Harmon Rotation Harmon Rotation Student Community Liaison Committee (Mayor/Rotation) (Monthly) Harmon Rotation Harmon Rotation Packet Page 3 Item #2 COUNCIL SUBCOMMITTEE ASSIGNMENTS 2019 and 2020 COUNTY/REGIONAL Serves as voting representative. 2019 CHAIR MEMBER 2020 CHAIR MEMBER Air Pollution Control District (APCD) (Quarterly) Harmon Stewart Harmon Stewart City Selection Committee (1-2 times per year) Harmon Pease Harmon Pease CMC Citizens Advisory Committee (Monthly) (* 2 year term) Christianson Stewart Christianson Stewart Community Action Partnership (Monthly) Stewart Harmon Stewart Harmon County Water Resources Advisory Committee (County Supervisors) (Monthly) Pease Christianson Pease Christianson County Regional Water Management Group (RWMG) Pease Gomez Pease Gomez Homeless Services Oversight Committee Christianson Stewart Christianson Stewart Integrated Waste Management Authority (IWMA) (Monthly) Gomez Pease Gomez Pease Local Agency Formation Commission (LAFCO) (Liaison Only) (Monthly) Stewart Christianson Stewart Christianson Nacimiento Water Project Pease Gomez Pease Gomez Performing Arts Center Commission (Mayor/Vice Mayor as alternate) (Quarterly) Harmon Johnson Pease Hermann Harmon Johnson Pease Hermann San Luis Obispo Council of Governments (SLOCOG) (Monthly) Pease Harmon Pease Harmon San Luis Obispo Regional Transit Authority (SLORTA) (Monthly) Pease Harmon Pease Harmon San Luis Obispo Valley Basin Groundwater Sustainability Agency (GSA) Pease Floyd Pease Floyd Visit SLO County Advisory Committee Harmon Johnson Pease Hermann Harmon Johnson Pease Hermann Whale Rock Commission (Mayor/Vice Mayor serves as alternate) (June & as needed) Harmon Pease Harmon Pease Zone 9 Advisory Committee (Monthly) Christianson Gomez Christianson Gomez AD HOC SUBCOMMITTEE CHAIR MEMBER MEMBER Airport Land Use Christianson N/A Christianson N/A SLO Climate Coalition Liaison Gomez Read N/A Gomez Read N/A Monterey Bay Community Power Authority – Policy Board Director Harmon Pease Harmon Pease Legislative Platform Review Committee (Added 2020 limited term January to February) Pease Christianson Pease Christianson Packet Page 4 Item #2 San Luis Obispo Page 1 Tuesday, December 3, 2019 Regular Meeting of the City Council CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, December 3, 2019 at time 4:30 p.m. in the Administration Collaboration Space, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon. ROLL CALL Council Members Present: Council Members Carlyn Christianson, Aaron Gomez, Erica A. Stewart, Vice Mayor Andy Pease, 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. PUBLIC COMMENT ON CLOSED SESSION ITEMS John Ashbaugh ---End of Public Comment--- CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: No. of potential cases: One. A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The existing facts and circumstances exposing the City to litigation include the following: A letter has been received from Robert Goodman, Attorney at Law on behalf of his client Jamie Gomez, asserting that the City of San Luis Obispo’s method of conducting elections may violate the California Voting Rights Act. Packet Page 5 Item #4 San Luis Obispo City Council Minutes of December 3, 2019 Page 2 Pursuant to California law, Mr. Goodman demands that the City Council adopt a resolution within 45 days of receipt of the letter outlining its intention to transition from at-large to district elections and specifying specific steps it will take to facilitate this transition. If the City Council does not adopt a resolution to this effect within 45 days (December 28, 2019), then Mr. Goodman asserts that legal action will be commenced in San Luis Obispo County Superior Court to require the City of San Luis Obispo to institute district elections pursuant to the California Voting Rights Act. B. CONFERENCE REGARDING PROPERTY NEGOTIATIONS Pursuant to Government Code §54956.8 Property: APN 002-436-005, APN 002-436-008, portions of APN 002-436-013 (the " Adler Parcel"); and, APN 002-436-018 Agency Negotiators: Derek Johnson, Christine Dietrick, Greg Hermann, Charles Bell, Tim Bochum, Charlene Rosales Negotiating Parties: County of San Luis Obispo, the City of San Luis Obispo, and 1144 Higuera Investments LLC, 1166 Higuera Street LLC Under Negotiation: Price and terms of payment C. CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 Agency Negotiators: Monica Irons, Nickole Sutter, Rick Bolanos, Derek Johnson, Christine Dietrick Represented Employee Organizations: San Luis Obispo City Employee’s Association (SLOCEA) San Luis Obispo Police Officer’s Association (POA) San Luis Obispo Police Staff Officer’s Association (SLOPSOA) International Association of Firefighters Local 3523 Unrepresented Employees: Unrepresented Management Employees Unrepresented Confidential Employees ADJOURN AT 6:25 P.M. TO THE REGULAR MEETING OF TUESDAY, DECEMBER 3, 2019 IN THE COUNCIL CHAMBER, 990 PALM STREET, SAN LUIS OBISPO, CALIFORNIA Packet Page 6 Item #4 San Luis Obispo City Council Minutes of December 3, 2019 Page 3 CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, December 3, 2019 at 6:27 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon. ROLL CALL Council Members Present: Council Members Carlyn Christianson, Aaron Gomez, Erica A. Stewart, Vice Mayor Andy Pease, and Mayor Heidi Harmon. Council Members 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. PLEDGE OF ALLEGIANCE Council Member Gomez led the Pledge of Allegiance. CITY ATTORNEY REPORT ON CLOSED SESSION City Attorney Dietrick reported regarding three items during Closed Session. A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Related to a CVRA demand letter, Council provided direction on negotiations with plaintiff counsel. Also, on a motion by Vice Mayor Pease and second by Council Member Stewart on a 5- 0 vote authorized the City Manager to appropriate funding for the litigation defense if necessary and the legal negotiations. B. CONFERENCE REGARDING PROPERTY NEGOTIATIONS Related to the garage project between the City, County and 1144 Higuera, LLC direction provided on price and terms and no other reportable action on this matter. C. CONFERENCE WITH LABOR NEGOTIATORS There was no reportable action on this matter. PRESENTATIONS 1. CERTIFICATE OF RECOGNITION FOR OUTGOING VICE MAYOR PEASE Mayor Harmon presented a Certificate of Recognition to outgoing Vice Mayor Pease. Packet Page 7 Item #4 San Luis Obispo City Council Minutes of December 3, 2019 Page 4 APPOINTMENT 2. VICE MAYOR APPOINTMENT FOR 2020 City Clerk Teresa Purrington presented the report and responded to Council questions. ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON SECOND BY VICE MAYOR PEASE CARRIED 5-0 to appoint Council Member Aaron Gomez as Vice Mayor to serve a one-year term commencing upon appointment. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Jeffery Specht Don Hedrick Nick Regalia Rachel Maiorino James Papp ---End of Public Comment--- CONSENT AGENDA ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER PEASE, CARRIED 5-0 to approve Consent Calendar Items 3 thru 5 and 7 thru 9. 3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate. 4. DRAFT MINUTES REVIEW - NOVEMBER 19, 2019 CITY COUNCIL MEETING CARRIED 5-0, Approve the minutes of the City Council meeting held on November 19, 2019. 5. ADJUSTMENTS TO SUPPLEMENTAL SALARY SCHEDULE AND POLICY AS A RESULT OF MINIMUM WAGE INCREASES CARRIED 5-0, to: 1. Adopt Resolution No. 11064 (2019 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, establishing and adopting a Supplemental Employee Salary Schedule and superseding previous resolutions in conflict” modifying the Supplemental Employee Salary Schedule as necessary to comply with California Fair Wage Act of 2016 requiring a minimum wage of $13.00 per hour effective January 1, 2020; and 2. Adopt the revised Supplemental Employee Policy. Packet Page 8 Item #4 San Luis Obispo City Council Minutes of December 3, 2019 Page 5 6. AN ORDINANCE TO REZONE PROPERTIES AT 609 & 633 PALM, 610, 614 & 630 MONTEREY, 970 & 972 NIPOMO Council Member Pease and Vice Mayor Gomez recused from Item #6 Public Comment: Item 9 – James Papp ---End of Public Comment--- CARRIED 3-0-2 (Council Member Pease and Vice Mayor Gomez recused), to adopt Ordinance No. 1671 (2019 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, rezoning properties at 609 & 633 Palm, 610, 614 & 630 Monterey, 970 & 972 Nipomo Streets from Office with a Historic District Overlay (O-H) and Medium-High Density Residential (R-3) to Downtown Commercial Zone with a Historic Overlay (C-D-H) consistent with the Palm Nipomo Parking Structure Project with an Addendum to the Certified Environmental Impact Report as represented in the Council Agenda Report and attachments dated November 5, 2019 (RZ-0460-2019).” 7. REQUEST TO AUTHORIZE STAFF TO ADVERTISE A REQUEST FOR PROPOSALS FOR CONTRACT WATER METER READING CARRIED 5-0, to authorize staff to advertise a Request for Proposals (RFP) for contract meter reading and authorize the City Manager to execute an agreement if the selected proposal is less than or equal to $182,000 and satisfying any meet and confer obligations with represented employees. 8. EQUIPMENT SURPLUS DESIGNATION AND AUTHORIZATION OF SALE CARRIED 5-0, to authorize the designation and disposal of surplus items in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Sections 405-L, 480-A, and 480-B. 9. HISTORIC SIGNIFICANCE DETERMINATION FOR A CONTRIBUTING LIST PROPERTY AT 644 MOUNTAIN VIEW STREET CARRIED 5-0, to adopt Resolution No. 11065 (2019 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, removing the property at 644 Mountain View Street from the Contributing Properties List of Historic Resources (644 Mountain View St, HIST-0531-2019).” STUDY SESSION ITEMS 10. CLIMATE ACTION PLAN STUDY SESSION Council Member Pease recusing herself pending resolution of FPPC enforcement action regarding Clean Energy Choice Ordinance. Deputy City Manager Greg Hermann, Sustainability and Nature Resources Official Bob Hill and Sustainability Manager Chris Read provided an in-depth staff report and responded to Council questions. Packet Page 9 Item #4 San Luis Obispo City Council Minutes of December 3, 2019 Page 6 Public Comments: Barry Rands Christian Vian Don Hedrick Jenn Yost Janine Rands Mary Ciesinski Quinn Brady Eric Veium ---End of Public Comment--- RECESS Council recessed at 8:17 p.m. and reconvened at 8:30 p.m., with all Council Members present except Council Member Pease. By consensus with Council Member Pease recused, Council directed staff to receive and file the Climate Action Plan Update and all agreed that the staff is moving in the right direction regarding the five focus questions. Council Member Pease rejoined the meeting at 8:46 p.m. PUBLIC HEARING ITEMS AND BUSINESS ITEMS 11. RESIDENT FOCUS GROUP AND SURVEY RESULTS REGARDING FUNDING PRIORITIES AND POTENTIAL REVENUE OPTIONS City Manager Derek Johnson and Assistant to the City Manager Ryan Betz provided an in- depth staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR GOMEZ, CARRIED 5-0 to: 1. Receive a report on the results of two resident focus groups, a statistically relevant survey of registered voters and a plan for continued public engagement and outreach; and 2. Proceed with further public engagement on funding priorities for the City, including renewing and amending the Local Revenue Measure (LRM) with ongoing community oversight (Revenue Enhancement Oversight Commission); and 3. Provide an update to the Revenue Enhancement Oversight Commission and discuss potential roles to support and participate in public engagement and outreach efforts. Packet Page 10 Item #4 San Luis Obispo City Council Minutes of December 3, 2019 Page 7 12. CANNABIS BUSINESS PROGRAM AND REGULATION UPDATES Deputy City Manager Greg Hermann, Economic Development Manager Charlene Rosales and Management Fellow Georgina Bailey provided an in-depth staff report and responded to Council questions. Public Comments: Ben Condron Don Hedrick ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER PEASE, CARRIED 5-0 to: 1. Receive an update on the City’s Cannabis Business Program; and 2. Adopt Resolution No 11066 (2019 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s Master Fee Schedule with updated User and Regulatory Fees for various Commercial Cannabis Business activities;” and 3. Adopt Resolution No. 11067 (2019 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approvi ng Cannabis Operator Permit Ranking Criteria and the Annual Application Submittal Period (Code-1058-2017);” and 4. Introduce Ordinance No. 1673 (2019 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending the Municipal Code Public Peace, Morals and Welfare (Chapter 9.10) Regulations for Commercial Cannabis Business Businesses and Personal Cultivation.” COUNCIL COMMUNICATIONS AND LIAISON REPORTS Council Member Pease participated at a water workshop on water conservation. ADJOURNMENT The meeting was adjourned at 10:14 p.m. The next Regular City Council Meeting is scheduled for Tuesday, January 14, 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 Packet Page 11 Item #4 Page intentionally left blank. Packet Page 12 Item #4 Department Name: Utilities Cost Center: 6001 For Agenda of: January 14, 2020 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Utilities Director Prepared By: Mychal Boerman, Deputy Director – Water Jennifer Metz, Utilities Projects Manager SUBJECT: 2019 WATER RESOURCES STATUS REPORT RECOMMENDATION Receive and file the City’s 2019 Water Resources Status Report. DISCUSSION The 2019 Water Resources Status Report (Attachment A) provides an overview and update on the City's water resources in accordance with the General Plan, Water and Wastewater Management Element, Program A5.3.1. This report covers Water Year 2019 which extends from October 1, 2018 through September 30, 2019. The main takeaways from the annual report are as follows: 1. The City has ample water supplies to serve existing and planned development. 2. Water supplies remain healthy and the City has a diverse water portfolio. 3. 2019 Water Year consumption was well below established water supplies and was 22 percent less than projected water demand for the City’s current population. Population growth was a total of four percent over the last ten years increasing from 44,948 persons in 2010 to 46,802 persons in 2019. 4. Prudent planning, management, monitoring, and investment in infrastructu re and professional staff will be key to the City’s continue ability to have resilient water sources. Highlights include: 1. Risk and Resiliency Assessment. On October 23, 2018, America’s Water Infrastructure Act of 2018 was signed. To comply, the City must conduct a Risk and Resilience Assessment and revise its Emergency Response Plan by June 30, 2021 and December 30, 2021 to assess infrastructure risks from natural and man-made hazards and plan for improved resilience and Packet Page 13 Item# 5 emergency response against those risks. The work is planned to be performed in-house by Utilities Department staff. 2. Transmission Line Review and Maintenance Need Identification. During October and November 2018, condition assessments were performed on over 16 miles of 30-inch transmission pipeline from Whale Rock Reservoir and 1.25 miles of the transmission pipeline that delivers water from Salinas Reservoir to the City’s Water Treatment Plant. The condition assessments used free-swimming electromagnetic inspection technology to locate and identify segments of the pipeline in need of repair. Needed repairs will be completed during the 2020-21 fiscal year. 3. Above Average Rainfall. On February 3, 2019, Salinas Reservoir was full and spilling. During Water Year 2019, three rainfall recording stations (Rocky Butte, SLO Reservoir, and Salinas Dam) received more than the annual rainfall average. Whale Rock Reservoir reached 92 percent of capacity in May 2019. 4. Groundwater Sustainability Plan. On February 5, 2019, the City Council approved a Notification of Intent to initiate development of a Groundwater Sustainability Plan. The City is working in collaboration with the County of San Luis Obispo to create a single Groundwater Sustainability Plan (GSP) that provides full coverage of the SLO Basin. To comply with the Sustainable Groundwater Management Act, the GSP must be submitted to California Department of Water Resources by January 31, 2022. 5. Short-Term Agreements. At a March 5, 2019 Study Session, Council supported the concept of short-term water supply agreements for outside City deliveries for both non-potable and recycled water supplies. 6. Whale Rock Spillway Assessment. Also, in March 2019, the Whale Rock Spillway Assessment Report was completed with recommendations including maintenance and repair activities for the drainage system and further engineering investigations. 7. Preparing for Power Shutoff Events. On August 20, 2019, in response to notification by PG&E of the potential for Public Safety Power Shutoff events, the City Council approved funding for emergency power needs for the Water Treatment Plant and other water facilities. The City procured rental equipment to sustain its facilities through the short-term as well as permanent portable equipment. The design of a permanent generator for the Water Treatment Plant is underway and planned to be in place during the 2020 Water Year. 8. Per Capita Water Usage Decreased. Although the City’s population increased by over 250 persons in the last year, per capita water use decreased from 100 gallons per ca pita per day in Water Year 2018 to 91 gallons per capita per day in Water Year 2019. The City’s Annual Water Resource Availability increased slightly during the Water Year from 10,130 - acre feet to 10,136-acre feet. Policy Context The 2019 Report was prepared in accordance with the General Plan, Water and Wastewater Management Element, Program A5.3.1. Public Engagement Annual Water Resources Status Reports have been provided to the City Council and community since 1985 and serve to both inform future policy decisions as well as provide historical documentation of water conditions. The current year’s Water Resources Status Report is made available on the City website annually. Packet Page 14 Item# 5 Table 1: Water Year 2019 Summary Water Year 2019 Summary (October 1, 2018 to September 30, 2019) Total Water Use: 4,762 acre feet Potable Water Use 4,561 acre feet Recycled Water Use 201 acre feet 2019 Population 46,802 Per Capita Demand Per Day (Potable Demand Only) 91 gallons Water Projection Model (as of September 30, 2019) >5 years of supply Annual Water Resource Availability: Salinas & Whale Rock Reservoirs 4,910 acre feet Nacimiento Reservoir 5,482 acre feet Recycled Water (from 2018) 244 acre feet Siltation (from 2010 to 2060) (500 acre feet) Total: 10,136 acre feet Water Supply Accounting: Primary Water Supply 1 7,496 acre feet Reliability Reserve 2 1,227 acre feet Secondary Water Supply 3 1,413 acre feet Total: 10,136 acre feet NOTES: 1. Per General Plan Policy A 5.2.2, primary water supply is t he amount of water needed for General Plan build-out using the water use rate established by policy A 5.2.1 (117 gpcd). 2. Per General Plan Policy A 5.2.3, reliability reserve that is 20-percent of the water use rate established in Policy A 5.2.1 multiplied by the City’s current population (46,548 in 2018). 3. Per General Plan Policy A 5.2.4, secondary water supply is the remaining City water supply available after accounting for primary water supply and a reliability reserve. 4. Values are rounded. CONCURRENCE Community Development concurs with the environmental review findings. ENVIRONMENTAL REVIEW The 2019 Report is not a "project" under the California Environmental Quality Act (CEQA), because the action does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378. FISCAL IMPACT Budgeted: N/A Budget Year: N/A Packet Page 15 Item# 5 Funding Identified: N/A Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Water Fund N/A N/A N/A Total N/A N/A N/A There are no fiscal impacts associated with the recommended action. ALTERNATIVES The City Council could elect not to receive and file the 2019 Report and provide direction to staff on desired modifications. Staff does not recommend this alternative, as the Report was prepared in compliance with General Plan, Water and Wastewater Management Element, Policy A5.3.1. Attachments: a - 2019 Water Resources Status Report Packet Page 16 Item# 5 2019 Water Resources Status Report For the Time Period October 1, 2018 through September 30, 2019 Whale Rock Reservoir, August 2019. Prepared by the Water Division of the City of San Luis Obispo, Utilities Department Packet Page 17 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 2 The City’s 2019 Water Resources Status Report was prepared in accordance with the General Plan, Water and Wastewater Management Element, Policy A5.3.1. The reporting period corresponds to the Water Year (October 1, 2018 through September 30, 2019), the twelve-month period for which precipitation totals are measured designated by the calendar year in which it ends. This report for Water Year 2019 is organized as follows: I. Regulatory and Water Projects Update II. Water Supply III. Water Demand IV. Water Resource Availability V. Water Supply Accounting I. REGULATORY AND WATER PROJECTS UPDATE America’s Water Infrastructure Act America’s Water Infrastructure Act of 2018 (AWIA) was signed on October 23, 2018. AWIA is an update to the Bioterrorism Act of 2002 of the Safe Drinking Water Act. AWIA outlines that community water systems serving 3,300 persons must: • Conduct a Risk and Resilience Assessment (RRA), • Revise Emergency Response Plans (ERP), • Submit a certification letter to EPA, • Review and update at least every five years. The Act requires the City to certify the RRA by June 30, 2021 and the ERP December 30, 2021. Preparation for PSPS Events To protect communities from wildfire, Pacific Gas & Electric (PG&E) notified its customers of its plans to implement precautionary measures during fire season. If extreme fire danger conditions threaten a portion of the PG&E electrical system, high-risk transmission lines may be turned off, resulting in potentially widespread power outages to San Luis Obispo County. PG&E refers to this as a Public Safety Power Shutoff, or PSPS event. According to PG&E, a PSPS event may be necessitated by strong winds, low humidity levels, and critically dry vegetation. PG&E advises these outages will not be localized; regional solutions will be limited because resources are likely going to be scarce on a local, regional and possibly a statewide scale. Nearby communities have already experienced similar PSPS events from their power supplier. Since being informed by PG&E of the potential for PSPS events, the City has worked to prepare for power outages lasting up to seven days or more. In the past, the City has been able to continue to provide uninterrupted water and wastewater service during short-duration power outages and when limited areas were affected by utilizing existing water storage tanks with limited emergency power generation - some of the City’s water and wastewater facilities have permanent emergency generators in place, while others utilized a limited number of mobile generators. With the PSPS notification from PG&E and the changing climate, staff identified additional emergency power resources for the City’s water and wastewater systems to meet this increased duration. Electrical power is the greatest dependency of water systems, with heavy reliance on electricity to run pumps and other system components. Packet Page 18 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 3 With the support of the City Council in August, the Utilities Department worked to quickly acquire additional temporary emergency generators and make necessary electrical improvements for the Water Treatment Plant, Whale Rock Reservoir, and other water pump stations and sewer lift stations. The City has also been working closely with the County of San Luis Obispo to acquire a generator for the Salinas Booster station that provides water from Salinas reservoir to the City. Installation of permanent generators are planned for 2020. These efforts will bolster the resiliency of the City’s water and wastewater services from any event that could result in loss of electricity. Whale Rock Dam Spillway Assessment The Whale Rock Reservoir and dam are located in San Luis Obispo County at the east boundary of the town of Cayucos. The dam is 266 feet tall with a crest length of 850 feet and crest width of 30 feet impounding Whale Rock Reservoir. The top of dam elevation is 232.2 feet. The Reservoir covers an area of 600 acres and has a maximum storage capacity of 38,967 acre-feet. Dam construction was completed in 1961. Whale Rock was constructed to provide municipal and agricultural water supplies, and fish and wildlife preservation. Over the 58-year life of the Whale Rock Reservoir and dam, the lake has filled to capacity and the spillway has been used 12 times, last spilling in 2005. In 2018, the City contracted with HDR Engineering, Inc. for inspection and assessment of the Whale Rock Dam 850- foot long spillway. The investgation included: 1. Review of design, construction, inspection, analysis, operation and maintenance, and geologic information, as provided by City. 2. Detailed visual inspection of the spillway slabs and walls from upstream of the spillway crest to downstream of the stilling basin. 3. Video/camera inspection of accessible outfall drains and heel drains. 4. Geologic inspection of foundation material adjacent to the spillway. 5. Evaluation of original spillway design versus a modern spillway design. 6. Evaluation of operations, inspection, and surveillance practices. 7. Evaluation of performance of previous repairs. A report was completed in March 2019 with recommendations including maintenance and repair activities for the drainage system and further engineering investigations. The City and its Whale Rock partners, Cal Poly and the California Men’s Colony, will implement corrections as recommended by the California Department of Water Resources, Division of Safety of Dams. Temporary Generator and the City’s Stenner Canyon Water Treatment Plant. Whale Rock Dam Spillway. Packet Page 19 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 4 Pipeline Condition Assessments During the 2019 Water Year, pipeline condition assessments were completed for the Whale Rock Reservoir and Salinas Reservoir (Santa Margarita Lake) water transmission pipelines. The condition assessments used free-swimming electromagnetic inspection technology, shown in the image below, to locate and identify segments of the pipeline in need of repair. Over 16 miles of 30-inch transmission pipeline from Whale Rock Reservoir was analyzed. The assessment found that 2,610 segments had no abnormalities, and 25 segments had varying deficiencies (broken bar wraps or cylinder wall loss). The Salinas pipeline condition assessment analyzed 1.25 miles of pipeline originally installed in 1940s. Results of the assessment were described in a May 2019 report revealing 222 of the total 236 segments had no abnormalities, and 14 segments had varying deficiencies. Funding is programmed to address these pipeline deficiencies in the 2020-21 fiscal year. Conceptual image of Electromagnetic Inspection Technology used to assess the Whale Rock and Salinas Reservoir transmission pipelines. Sustainable Groundwater Management Act The use of groundwater contributes to resiliency in the City’s water supply portfolio by offering a potable water source to complement the City’s three surface water supplies. The Sustainable Groundwater Management Act (SGMA) is a statewide law that requires Groundwater Sustainability Agencies (GSA) to adopt groundwater management plans that outline actions needed to return groundwater basins to sustainable levels of pumping and recharge. In May 2017, the City Council approved Resolution 10796 authorizing the City to become a Groundwater Sustainability Agency (GSA) for the San Luis Valley Groundwater Basin for the area that lies beneath and within the City’s jurisdictional boundaries. In February 2019, the City Council, acting as the San Luis Valley Basin – City of San Luis Obispo Groundwater Sustainability Agency, approved the Notification of Intent to initiate development of a Groundwater Sustainability Plan (GSP) for the San Luis Obispo Valley Groundwater Basin. The City is working in collaboration with the County of San Luis Obispo GSA to create a single Groundwater Sustainability Plan (GSP) that provides full coverage of the San Luis Valley Groundwater Basin. To get additional information, to sign up for the interested stakeholder email list, or to see materials for past or upcoming meetings related to the GSP development, interested parties are encouraged to visit www.slowaterbasin.com. The San Luis Valley GSP must be submitted to California Department of Water Resources (DWR) by January 31, 2022. Packet Page 20 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 5 Leak Detection In September 2019, staff from the City’s Water Distribution section field tested acoustic correlation equipment by Echologics on an existing cast iron water main on Bebee Street. Acoustic sensors were attached to water valves to measure the speed at which sounds waves travel along the pipe. These sensors effectively listen to water flowing through the pipe and can hear when water is escaping through a leak. The location can then be identified. Using this tool regularly the City will be able to: • More accurately locate small leaks, resulting in less damage to surrounding infrastructure • Further optimize its capital spending • Minimize water main breaks, water loss, and damage from leaks • Better manage aging water infrastructure The City’s correlator can identify leaks that have not come to the surface yet, and pinpoint leak location within about two feet. The City’s Water Distribution team is looking forward to utilizing this device to reduce water loss, find leaks before they create damage, reduce road repair work, and enhance proactive maintenance of the water distribution system. Waterline Replacement Projects Replacement of water distribution pipes and related facilities is an ongoing program aimed to address aging, substandard, and deteriorating infrastructure, with the added benefit of reducing customer impacts associated with emergency repairs. Waterline breaks occur with more frequency with aging waterlines, and the resulting repairs are disruptive to the public and expensive to repair. The main objectives of this program are to ensure reliable water service, reduce the need for emergency repairs, and to enhance available fire flows. During the 2019 Water Year, the City completed replacement of approximately 5,000 lineal feet of waterline on Pacific (from Nipomo to Walker), Boysen (from Chorro to Hwy. 1), Chorro (from Pismo to Pacific) and Sierra (from Ella to Bishop) streets at a cost of approximately $2.3 million. The Casa/Stenner/Murray Waterline Replacement Project proposes replacement of over 3,100 lineal feet of aged waterline on Casa, Stenner, Murray (from Hathway to Santa Rosa) and the intersections of Chorro/Meinecke and Chorro/Murray. The construction cost of the project is approximately $2 million. The waterlines replaced with this project are undersized and deteriorated. Their replacement will eliminate capacity limitations for Sierra Vista Hospital, reduce the likelihood of service interruptions due to leaks, and improve water flow for fire protection. Short-Term Water Sales At a March 2019 study session, City Council provided direction to staff related to short-term water sales. A potential recipient of this program may be Cal Poly while the university secures a permanent water supply specifically related to housing production. Council supported broadening existing policy language for the City to supply non-potable water (raw water or recycled water) through a short-term agreement for agricultural purposes. Short-term agreements would be crafted to include provisions for service interruption or reduction, due to operational issues or climatic events, low reservoir levels, increased Packet Page 21 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 6 water demand forecasting, or water quality deterioration. Meaning, during a water shortage emergency, City water deliveries would be prioritized above those included in a short-term sales agreement. The City is uniquely positioned to assist Cal Poly in meeting its 2035 Master Plan goals as both a regional water partner and in support of City goals, particularly as it relates to additional on-campus housing. Cal Poly currently only has one source of potable water, which is raw water from Whale Rock Reservoir that is treated at the City’s water treatment plant and delivered to the campus as part of a contract between the City and Cal Poly. Any contracts for short-term water sales would be brought to the City Council for consideration. II. WATER SUPPLY Per the General Plan Water and Wastewater Management Element, Policy A2.2.1, the City uses multiple water sources to meet its water supply needs. The City has four primary water supply sources including Whale Rock Reservoir, Salinas Reservoir, Nacimiento Reservoir, and recycled water. Groundwater serves as a fifth supplemental source. The supply per source for Water Year 2019 (from October 1, 2018 to September 30, 2019) is summarized below. 2019 City Water Supply by Source (in acre feet) Nacimiento Reservoir Whale Rock Reservoir 2 Recycled Water Salinas Reservoir Groundwater 3 Total City Water Demand 3,406 350 201 805 0 4,762 71.5% 7.4% 4.2% 16.9% 0% 100% Notes: 1. Values are rounded. 2. Water delivered to Cal Poly State University is excluded from the City’s water demand. 3. Groundwater was not used for potable purposes during Water Year 2019. During Water Year 2019, 71.5 percent of the City’s total water demand was met by Nacimiento Reservoir. San Luis Obispo County operates and maintains the water delivery system from Nacimiento Reservoir to participating agencies (currently the cities of Paso Robles and San Luis Obispo, Atascadero Mutual Water Company, Templeton Community Services District, County Service Area 10A [Cayucos], Santa Margarita Ranch, and Bella Vista Mobile Home Park). The Nacimiento Project Commission provides oversight to project operations, maintenance, and the project budget. The Commission is made up of representatives from each of the four agencies’ governing boards and a County Representative who is a member of the County Board of Supervisors who also sits on the Board of Directors for the Flood Control District. During Water Year 2019, the City utilized a total of 1,155-acre feet from Salinas and Whale Rock reservoirs, meeting 24.3 percent of total City water demand. The City pays the County of San Luis Obispo Flood Control and Water Conservation District (County) to provide oversight, operations, and maintenance of Salinas Reservoir and related water delivery facilities. The City provides oversight, operations, and maintenance of the Whale Rock Reservoir for the benefit of the Whale Rock Commission, a joint powers agency made up of Cal Poly State University, California Men’s Colony, and the City. For Water Year 2019, the City delivered 201-acre feet of recycled water for landscape irrigation and construction water. This equates to 4.21 percent of total City water demand. New recycled water customers include Coast BMW, HASLO for the Iron Works housing project, and Prado Day Center. Recycled Water for Construction (in acre feet) 2017 2018 2019 19 36 20 Note: Values are rounded. Packet Page 22 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 7 Construction water use decreased from 36-acre feet in Water Year 2018 to 20-acre feet in Water Year 2019. Construction of the Water Resource Recovery Facility (WRRF) Project began in 2019 and will take approximately three years to complete. When complete, the new technology used at the WRRF will reduce overall wastewater treatment time by approximately 20 hours, from approximately 28 hours to eight hours, providing a shortened timeframe for when wastewater comes into the plant and when it can be sent out into the recycled water system for irrigation use. Although the City suspended using groundwater for potable purposes in April 2015, groundwater wells remain in an operable, stand-by position should the use of groundwater be needed. During Water Year 2019, the City continued its work with a hydrogeologist to site a future well field for a potential groundwater program expansion. The City received notice from the State Water Resources Control Board inviting the City to submit a full proposal for the Proposition 1 Groundwater Grant Program for consideration in 2019. The City was notified in October 2019 that pending negotiation with the State Board, it will be receiving the $2 million planning-phase grant for installation of monitoring wells and for monitoring groundwater quality. These are necessary steps in reestablishing the City’s groundwater program. The planning phase will continue through 2020 with implementation planned for 2021. III. WATER DEMAND During Water Year 2019, 60.48 percent of total water use in the City was to support single and multi- family residential uses, 28.36 percent was to support commercial and other non-residential development, and 11.16 percent was to support landscape irrigation that is separately metered. Historical water use is summarized below, as well as corresponding population, per capita use rate, and rainfall. The 2019 per capita water use was 91 gallons per capita per day (gpcd). Per capita water use is calculated by dividing total water use in the City by the City’s population. Total water use includes residential and daytime population needs for all uses such as restaurants, hotels, industrial/manufacturing, government/schools, Salinas Dam spillway, February 2019. Packet Page 23 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 8 and irrigation. Based on the City’s General Plan Water and Wastewater Management Element policies, the City uses a factor of 117 gpcd to project water required to serve the General Plan’s estimated population in 2035. Population, Water Use, and Rainfall Year Population3 Total Water Use (acre feet) Per Capita Water Use (gpcd) Rainfall1,2 (inches) 2010 44,948 5,489 109 36.0 2011 45,418 5,285 104 18.9 2012 45,308 5,541 109 21.5 2013 45,541 5,892 116 3.8 2014 45,473 5,524 109 14.2 2015 45,802 4,990 97 11.8 2016 46,117 4,731 92 17.8 2017 46,424 4,975 95 35.1 2018 46,548 5,225 100 12.9 2019 46,802 4,762 91 27.1 NOTES: 1. Rainfall for 20 10 through 2012 calendar year sourc e was from Cal Poly CIMIS Weather Station. Rainfall for calendar year 2013 through 2019 was from SLO Reser voir. 2. Rainfall data for 2000-2014 is for the calendar year; 2015-2019 data covers the Water Year (October 1 to September 30). 3. Population data is available at: http://www.dof.ca.gov/Forecasting/Demographics/Estimates/e-1/ The City’s water supply reservoirs are in different watersheds, therefore rainfall at various locations within San Luis Obispo County benefits the City. During Water Year 2019, three reservoir locations (Rocky Butte, SLO Reservoir, and Salinas Dam) received more than the annual average. The remaining location, Hwy 46 and W 7 Mile Road, Cambria, CA, received 92 percent of average rainfall. Water Year 2019 Rainfall Totals Rainfall Measurement Location Watershed Annual Average Rainfall (in inches) Water Year 2019 Total Rainfall (in inches) Water Year 2019 Percent of Average Rocky Butte Nacimiento Reservoir 40 52.40 131% Hwy 46 and W 7 Mile Road, Cambria, CA Whale Rock Reservoir 30 27.65 92% SLO Reservoir City 24 27.10 113% Salinas Dam Salinas Reservoir 22 33.25 151% Source: https://wr.slocountywater.org/list.php?sensor_class=11&mode=sensor&cache=1&refresh=off Packet Page 24 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 9 IV. WATER RESOURCE AVAILABILITY The following table summarizes the Water Resource Availability based on Water and Wastewater Management Element, Section 3. Water availability for 2019 is 10,136-acre feet. 2019 Water Resource Availability Water Resource Acre Feet Description Salinas & Whale Rock Reservoirs 4,910 Safe Annual Yield 1 Nacimiento Reservoir 5,482 Dependable Yield 2 Recycled Water 244 2018 Annual Usage 3 Siltation from 2010 to 2060 (500) WWME Policy A 4.2.2 4 10,136 2019 Annual Availability NOTES: 1. The City’s Safe Annual Yield model was updated in 2018. 2. Dependable Yield is the contractual amount of water the City has rights to from Nacimiento Reservoir. 3. The quantity of recycled water included is the actual prior year’s usage (calendar year 2018) per General Plan Water and Wastewater Management Element Policy A 7.2.2. 4. Reservoir siltation is a natural occurrence that reduces storage capacity over long periods, resulting in the reduction of safe annual yield. Packet Page 25 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 10 V. WATER SUPPLY ACCOUNTING Per General Plan Water and Wastewater Management Element, Section 5, the City accounts for water supplies necessary to meet three specific community needs: • Primary water supply • Reliability reserve • Secondary water supply The City’s primary water supply is defined as the amount of water needed to serve the build-out population identified in the General Plan, Land Use Element (2014). Table 3 in the Land Use Element identifies an urban reserve capacity of 57,200 people. The quantity of water needed for the primary water supply is calculated per WWME Policy A 5.2.2, using 117 gallons per capita per day (gpcd). The City’s reliability reserve provides a buffer for future unforeseen or unpredictable long-term water supply impacts. The quantity of water for the reliability reserve is defined in WWME Policy A 5.2.3, using 20 percent of the existing City population (46,802, 2019 population) at 117 gpcd. The reliability reserve will change over time as the City’s population changes. The reliability reserve concept is included in the City’s Charter (Section 909) which identifies that the water may not be used to serve future development. The City’s secondary water supply is the amount of water remaining from available water resources above those needed to meet the primary water supply and reliability reserve. The secondary supply is identified to meet peak water demand periods or short-term loss of City water supply sources, per General Plan Water and Wastewater Management Element, Policy A 5.2.4. Water supply accounting is summarized in the table below and shown in Appendix A . 2019 Water Supply Accounting (acre feet) Total Primary Water Supply Reliability Reserve Secondary Water Supply 10,136 7,496 1,227 1,413 In summary, the City maintains a robust water supply portfolio with greater than five years of water available. Per capita water use (obtained from adding up all water used by visitors, residents, commercial uses, etc.) decreased during the 2019 Water Year to 91 gallons per capita per day (gpcd) from 100 gpcd during the 2018 Water Year. Primary Water Supply = 117 gpcd x City Build-out Population = 117 gpcd x 57,200 x 365 day/year x Acre-Ft/325,851 gal 7,496 Acre-Ft/year Reliability Reserve = 117 gpcd x 2019 City Population x 20 percent = 117 gpcd x 46,802 x 365 day/year x Acre-Ft/325,851 gal x 20 percent 1,227 Acre-Ft/year Secondary Water Supply = Current Annual Availability – Primary Water Supply – Reliability Reserve = 10,130 Acre-Ft/yearA – 7,496 Acre- Ft/year – 1,220 Acre-Ft/year 1,413 Acre-Ft/year A 2018 Annual Availability Packet Page 26 Item# 5 City of San Luis Obispo 2019 Water Resources Status Report Page 11 Appendix A. Packet Page 27 Item# 5 Page intentionally left blank. Packet Page 28 Item# 5 Department Name: Public Works Cost Center: 5002 For Agenda of: January 14, 2020 Placement: Consent Estimated Time: N/A FROM: Shelly Stanwyck, Assistant City Manager, Community Services & Interim Public Works Director Prepared By: Richard Burde, Engineer III SUBJECT: LAGUNA LAKE 2020 MAINTENANCE DREDGING PROJECT, SPECIFICATION NO. 91392 RECOMMENDATION 1. Approve the Project Plans and Special Provisions (to be transmitted as agenda correspondence prior to meeting) for the Laguna Lake 2020 Maintenance Dredging 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 $380,000. DISCUSSION Background The City of San Luis Obispo owns the 344-acre Laguna Lake Natural Reserve that includes most of Laguna Lake, portions of Prefumo Creek and its outlet into the Lake, and adjacent upland areas. In July of 2014, Council adopted the “Laguna Lake Natural Reserve Conservation Plan” which outlined future management and conservation goals for Laguna Lake. On January 19, 2016, Council authorized MNS Engineers to produce construction documents for dredging of the Lake. Also approved at this time were the Plans and Specifications and regulatory permit applications to the Army Corp of Engineers, the California Department of Fish and Wildlife, and the Regional Water Quality Control Board. The scope of work for the Laguna Lake 2020 Maintenance Dredging Project will be to remove 2,000 cubic yards (CY) of accumulated sediment at the mouth of the Prefumo Creek which discharges into the Lake from the south. In addition to this dredging operation, the project includes approximately 90 linear feet (LF) of bank stabilization at the Lake’s main parking lot. This will prevent further deterioration of the bank and prevent asphalt from eroding into the Lake. Although the permits received allow for up to 4,000 CY of annual sediment removal, City staff is recommending limiting the total volume in the first year to 2,000 CY to determine the benefits of this methodology with the intent of increasing volumes in subsequent years. The nature of this project is highly logistical, and staff intend to use the first year’s dredging efforts to refine the Packet Page 29 Item# 6 work and increase efficiencies moving forward. Essentially, the project is a pilot and staff expects to learn from it and leverage this knowledge for future phases of dredging. All necessary permits from governing environmental agencies to commence the dredging operation have been obtained. Permitting agencies include Army Corp of Engineers, California Department of Fish and Wildlife, and the California Water Control Board. These permits are valid for a five-year period, starting in August of 2019, and have an option for a one-time extension of five additional years. Fresh water lake dredging work is a highly specialized in nature, and contractors that perform this work are not commonly available in this area. For this reason, the bidding period for this project is longer than typical with the hope of attracting multiple competitive bids from qualified contractors. Previous Council or Advisory Body Action This project was originally identified in the 2015-17 Financial Plan that was approved by Council. Subsequently, funding was appropriated in the 17-19 and 19-21 Financial Plans. In addition to the above budget adoptions, Council took the following actions: ➢ August 18, 2015 – Authorize the issuance of a Request for Proposals (RFP) for phase I of the Laguna Lake Dredging and Sediment Management Project in furtherance of the City’s Laguna Lake Natural Reserve Conservation Plan ➢ January 19, 2015 – Award and approve a consultant services agreement with the firm MNS Engineers, Inc. (“MNS”) in an amount not-to-exceed $445,000 for Laguna Lake Dredging and Sediment Management ➢ September 20, 2016 - Receive and file the Preliminary Dredging Report (the “PDR”) prepared by MNS Engineers, Inc. and, as further described in the PDR, direct staff to proceed with further analysis and further recommendations. ➢ October 24, 2017 – Approve a Resolution to adopt a Mitigated Negative Declaration of Environmental Impacts for the Laguna Lake Dredging and Sediment Management Project. ➢ May 8, 2019 – The City of San Luis Obispo received the California State Fish and Wildlife 1600 Lake Alteration Agreement, permitting the alteration of the Lake’s bed. ➢ August 7, 2019 – The City of San Luis Obispo received the Army Corp of Engineers 404 permit allowing for the discharge of dredged material into the waters of the United States. ➢ September 11, 2019 – The City of San Luis Obispo received the 401 permit from the California Water Control Board, which expands on the 404 permit received from the Army Corp by outlining water quality guidelines that must be maintained during construction. Policy Context Per the October 2018 Purchasing Policy Update to the July 2015 Financial Management Manual, Council approval is required for Public Projects that cost over $175,000. Packet Page 30 Item# 6 Public Engagement Public engagement was done during the initial identification of this project to be included in the 2017-19 Financial Plan and again during preparation of the construction documents. In addition, a neighborhood organization referred to as “The Friends of Laguna Lake” has continued to communicate with, and receive progress updates from, City staff. During this time “The Friends of Laguna Lake” have acted as liaison between the City and community stakeholders by providing progress updates regarding permitting, design, and construction timelines. City staff anticipates that this level of communication will continue throughout the life of the project. CONCURRENCE The Administration and Parks and Recreation departments concur with the proposed recommendation outlined in this document. ENVIRONMENTAL REVIEW Council approved a Mitigated Negative Declaration for the project on October 24, 2017. All environmental mitigations have been outlined in the permits that have been issued by the Army Corp., California Water Board, and Department of Fish and Wildlife. No additional environmental review is required. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20 and 2020-21 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $496,500 $496,500 State Federal Fees Other: Total $496,500 $496,500 Funding for Laguna Lake Dredging 2019-20 2020-21 $150,000 $350,000 Packet Page 31 Item# 6 Engineer's Estimate $380,000 Conginencies (20%)$76,000 Monitoring Services $20,000 Water Quality Sampling $20,000 Printing $500 TOTAL PROJECT $496,500 Budget Available (91392)$500,000 Budget Remaining $3,500 Laguna Lake Maintenance Dredging Project Engineer’s estimate for the work is $380,000. Contingencies, environmental monitoring, and water quality sampling are estimated to be $76,000, $20,000, and $20,000 respectively. The 2019 fiscal year allocated $150,000 to dredging effort, and an additional $350,000 will be made available at the start of the 2020 fiscal year. This brings the total budget for project completion to $500,000) to complete the summer 2020 dredging efforts. Any remaining funds could be added to the dredging efforts scheduled for the summer of 2021. ALTERNATIVES Council could choose to not authorize City staff to advertise the dredging of Laguna Lake. This is not recommended since sediment will continue to accumulate, requiring more frequent or larger more costly dredging operations in the future. Additionally, dredging the Lake has been identified as an “Other Important Council Objective”. Packet Page 32 Item# 6 Department Name: Administration and IT Cost Center: 1006 For Agenda of: January 14, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Molly Cano, Tourism Manager SUBJECT: REQUEST FOR PROPOSAL FOR MARKETING SERVICES FOR THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION As recommended by the Tourism Business Improvement District (TBID) Board: 1. Authorize the issuance of a Request for Proposals (RFP) (Attachment A) for contract services for tourism marketing services; and 2. Authorize the City Manager to award the contract if proposals are within the project budget of $1,000,000. DISCUSSION Background In June 2008 Council adopted Ordinance 1517 establishing a tourism business improvement district (TBID) as requested by the local lodging industry. The assessment became effective on October 1, 2008 and the use of funds was defined in Section 12.42.030 as follow: “This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination.” In order to effectively and efficiently execute the marketing efforts for the district, the City via the TBID Board actively retains a full-service agency-of-record to perform all marketing functions. Over the tenure of the district, the TBID has issued two separate RFPs for the selections of the agency to perform this work. The current contract is for a two-year term with the ability to extend twice for additional one- year term per extension. Those extensions will be exhausted on June 30, 2024. Packet Page 33 Item #7 Establishment of the RFP The TBID Board is a working Board and began discussing the RFP process in fall of 2019. In order to effectively draft the RFP document in partnership with staff, the TBID appointed an RFP Taskforce and provided input and direction as to the contract terms and budget amount. The taskforce is comprised of three TBID Board members and is staffed by the City’s Tourism Manager and Tourism Coordinator. The taskforce met four times between October - December to develop the RFP. Scope of Work The expected scope of work is provided in the RFP (Attachment A) and outlined below, although the final scope of work may be “fine-tuned” with the selected agency as a part of the contract negotiations. The following are the minimum expected elements of the marketing services efforts included in the work program for the selected agency. 1. Brand Amplification & Management: The agency will deliver recommendations to position the existing brand in an impactful way. The agency will define and amplify the unique qualities for San Luis Obispo as a visitor destination to achieve increased awareness and drive interest and demand resulting in overnight stays. 2. Marketing Strategy, Plan & Execution: The agency will develop and successfully execute a two-year Marketing and Advertising Plan based on research and insights that supports the strategies approved by TBID. Includes Strategic Direction, Target Market/Persona Development, Creative Strategy, Brand Amplification & Management, Digital Strategy, Content Strategy, Promotional Campaigns and Media Plan. Once developed, the agency must have the ability to work the approved plan, and when needed provide insight and reasoning for tactful pivots in order to achieve the goals. The selected marketing agency is responsible for the concept creative materials/campaign elements (online, print, broadcast, etc.) as described in the Marketing and Advertising Plan. Once approved, the agency will produce and bring to final form the approved advertising materials to run on behalf of TBID. 3. Media Buy: The agency is responsible for developing and executing the media plan presented in the Marketing and Advertising Plan approved by the TBID Board. Execution includes placement, optimization, cancellations, auditing, payment to vendors and billing of services. 4. Creative Services & Content Development/Management: The agency is responsible for all additional creative and content creation and/or curation for entirety of marketing efforts. This includes creating and managing content on the website (including general descriptions, ShareSLO blog, SLO Happenings event calendar), all social channels, digital newsletters & emails, advertorial copy and partner content contribution. On a regular basis, the selected agency shall provide concept and creative services including but not limited to print, web, digital media and event activation. Collateral and asset development will be provided on an as-needed basis, the selected agency is responsible for maintaining relationships with any subcontractors or vendors. Packet Page 34 Item #7 5. Digital Management: The agency will be the principal advisor and provider to the TBID for all online and website marketing strategy, including website services, blog management, social media and subscriber database management. The website is the central marketing element for the TBID. The board is not seeking recommendations for a website redesign of VisitSLO.com. The agency will be responsible for on-going design and development enhancements, content development, site development, maintenance and hosting. This includes all written and visual content (photos, video, etc.) and applicable alt tags, metadata and key word optimization, SEO and link building & management, site ranking & Google score. The marketing agency will be responsible for creating and managing content on the ShareSLO blog including writing and posting blog copy on the website, ensuring that posts are search engine optimized, creating feature graphics and adding photos from our library and/or stock assets into the post and publishing. The agency is responsible for developing, executing and managing an annual social strategy and program including community management, engagement campaigns and a digital influencer strategy. ShareSLO is the TBID’s social identity. Current social channels include Facebook, Instagram, Twitter, Pinterest and YouTube. The agency is responsible for maintaining an e-mail automation system, managing subscriber lists and utilizing lists accordingly. The selected agency will also be responsible for the design/template customization, copy and distribution of the TBID e-newsletter. The agency will be responsible for procuring and utilizing digital service tools or resources. 6. Public Relations Integration: Our public relations contractor (San Luis Obispo Chamber of Commerce) leads efforts to engage media with press visits/FAM tours, press releases, pitching, industry submissions and more. Our selected agency will be expected to work in conjunction with our public relations contractor to ensure that messaging is coordinated across all channels. Both our marketing contractor and public relations contractor will be expected to work from the Marketing and Advertising Plan. 7. Reporting: The agency will be responsible for reporting on all work program outcomes to the board, staff and stakeholders. This include the production of monthly activity reports, delivery of written and verbal quarter production reports, and annual contract review reports. In collaboration with staff, the agency will produce annually the comprehensive TBID Board Annual Report in written, presentation and video forms. Previous Council or Advisory Body Action At the December 11, 2019 regular TBID Board meeting, the TBID Board approved the RFP and established the recommendation to City Council. (Attachment B– TBID Board Minutes) Policy Context As referenced in the City’s Municipal Code, 12.42.030 and Sections 36501 of the California Streets and Highways Code, the use of funds are for the general promotion of tourism within the district is to include costs as specified in the business plan to be adopted annually by the city council, and the marketing of the district to the travel industry in order to benefit local tourism and the local hotel industry in the district. Packet Page 35 Item #7 Public Engagement This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. The TBID reviewed the RFP at a public meeting on December 11, 2019 and recommended approval as shown in the minutes (Attachment B). Upon issuing of the RFP, all appropriate notification including RFP advertising, posting on the City’s website and outreach will be performed. 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: 2020-21 & 2021-22 Funding Identified: Yes Fiscal Analysis: Funding Sources 20-21 FY Cost 21-22 FY Cost Total Project Cost General Fund State Federal Fees Other: TBID $1,000,000 $1,000,000 $2,000,000 Total $2,000,000 In 2020-21, the TBID projected revenue is $1,626,600, which is intended to be used for tourism marketing and promotion. A similar amount of revenue from the TBID assessment is projected for 2021-22. All costs associated with TBID program expenditures are paid with TBID revenues which are separate from the City’s General Fund. The actual appropriation of the funding happens with the City’s adoption of the two-year financial plan. ALTERNATIVES 1. The City Council may choose to deny or defer the approval to issue this RFP for marketing services. Staff does not recommend this option as the existing marketing contract will expire on June 30, 2020 without the ability to extend the term. Attachments: a - SLO TBID 2020-22 Marketing Services RFP_Draft b - 12-11-2019 TBID Minutes DRAFT Packet Page 36 Item #7 The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities. Telecommunications Device for the Deaf (805) 781-7410. Notice Requesting Proposals for Destination Marketing Services For the City of San Luis Obispo Tourism Business Improvement District The City of San Luis Obispo is requesting sealed proposals for consultant services associated with the comprehensive marketing services for tourism promotion. All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will be required to complete a free registration using BidSync (https://www.bidsync.com/bidsync-app- web/vendor/register/Login.xhtml). All proposals must be received via BidSync by the Department of Finance at or before February 28, 2020 at 3:00 pm PST when they will be opened publicly in the City Hall Council Hearing Room, 990 Palm Street, San Luis Obispo, CA 93401. Proposals received after said time may not be considered. The preferred method of submission is electronically via BidSync. If you wish to send a hard copy to guard against premature opening, each proposal shall be submitted to the Department of Finance in a sealed envelope plainly marked with the proposal title, project number, proposer name, and time and date of the proposal opening. Proposals shall be submitted using the forms provided in the project package. An optional pre-proposal conference will be held to answer any questions that the prospective proposers may have regarding the City's request for proposals. Council Hearing Room 990 Palm Street, San Luis Obispo February 6, 2020 at 9:00 am (605) 475-4000, Code: 695684 A letter of Intent to Bid is requested, but not required for this RFP. The optional Intent to Bid is to be submitted to the City’s Tourism Manager Molly Cano at mcano@slocity.org by 5:00 pm on February 18, 2020. Project packages and additional information may be obtained at the City’s BidSync website at www.BidSync.com. Please contact the City’s Tourism Manager Molly Cano at mcano@slocity.org with any questions. Packet Page 37 Item #7 TABLE OF CONTENTS A. INTRODUCTION ......................................................................................................................................... 1 B. SCOPE OF WORK ....................................................................................................................................... 3 C. PROJECT SCHEDULE .................................................................................................................................. 5 D. PROJECT BUDGET ..................................................................................................................................... 5 E. GENERAL TERMS AND CONDITIONS ......................................................................................................... 5 F. SPECIAL TERMS AND CONDITIONS .................................................... ERROR! BOOKMARK NOT DEFINED. G. FORM OF AGREEMENT ........................................................................................................................... 20 H. INSURANCE REQUIREMENTS .................................................................................................................. 22 I. PROPOSAL SUBMITTAL FORMS .......................................................... ERROR! BOOKMARK NOT DEFINED. Packet Page 38 Item #7 -1- A. INTRODUCTION The City of San Luis Obispo’s (“City”) Tourism Business Improvement District (“TBID”) is seeking proposals from full-service, qualified, highly creative and innovative marketing agencies for execution of the integrated destination marketing program for the City. I. Background San Luis Obispo is a leading tourism destination on the Central Coast of California. Located halfway between San Francisco and Los Angeles, the city is at the heart of the vibrant San Luis Obispo County region (also known as “SLO CAL”). Approximately, 1.5 million visitors annually visit San Luis Obispo to enjoy the destination offerings like the charming downtown, iconic attractions like the Mission, Bubble Gum Alley and Farmers Market, Cal Poly State University, or use SLO as home base when visiting the nearby beaches, wine regions or other attractions. In October 2008, after decades of city directed efforts and at the request of the local lodging industry, the San Luis Obispo City Council established the San Luis Obispo Tourism Business Improvement District. The TBID is a special assessment district within the city that provides specific benefits to payors, by funding marketing, advertising, promotions, and sales efforts for assessed businesses. To manage the district’s activities, the City Council appointed an Advisory Board of hoteliers to make recommendations to Council regarding the use of the assessment funds. The Board’s primary focus is to promote San Luis Obispo as a visitor destination to enhance the economic wellbeing of the lodging industry. In the eleven-year history of the TBID, the lodging businesses have seen great benefits from the tourism marketing efforts of the district in the form of increased annual occupancy and average daily rate , and subsequently the City has benefited from the increase in transient occupancy tax revenues. However, within the past few years hotel room inventory within the city and the region has expanded dramatically and will continue to grow. In order to combat that shift, the TBID desires to evolve their destination marketing efforts to remain competitive and expand their market share. II. Organization Structure The TBID program is overseen by a City Council appointed Advisory Board. The Board is comprised of seven SLO lodging members. Board members serve four-year staggered terms. The leadership consists of a Chair and Vice Chair. TBID Board members, excluding the Board Chair, serve on the board appointed Management and Marketing subcommittees. The TBID is currently staffed by a team of two full-time City of San Luis Obispo employees. The program functions of the staff TBID staff are project and contract management, local partnership development and management, organizational planning and operations, stakeholder management and industry relations. The team holds memberships with several industry professional organizations, including CAL Travel and California Hotel & Lodging Association, and committee/board seats with a number of organizations, including Visit SLO CAL, SLO Coast Wine Collection, Central Coast Tourism Council, Visit California and others. III. Objective The TBID is requesting proposals from full-service marketing agencies to conduct the organization’s Packet Page 39 Item #7 -2- overall marketing and branding efforts. The TBID is looking for passionate, committed, creative people with big ideas and possess the ability to execute those ideas effectively on behalf of the destination. Responding agencies should have experience in marketing travel destinations and/or lifestyle brands. The contracted agency will be responsible for creating and executing a comprehensive marketing plan to support the TBID’s branding, marketing, advertising and digital initiatives. IV. Current Agency Structure The TBID currently operates with a marketing agency of record. The term of the current agency of record will expire in June 2020. If the current agency of record does not successfully bid to extend their contract, a transition period for the outgoing agency of record and the successful proposer will be established. The intent is to have the marketing resources in place to develop the 2020-2022 marketing program. The marketing agency will work collaboratively with all necessary partners to ensure a seamless brand experience for potential visitors and stakeholders. V. Contract Term & Financing The successful proposer will enter into a contract for services with the City of San Luis Obispo. The duration of the initial contract between the City and the selected agency is expected to begin July 1, 2020 and terminate on June 30, 2022. The City, based on the recommendation of the TBID Board, reserves the right to renew the agreement for total of four (4) fiscal years, providing funding to do so is appropriated for this purpose in subsequent budgets. There will be reviews annually in each year. Proposed renewals are also assessed according to program direction, funding, and consistency of price and scope of work continuity. This contract will initially be funded up to $1 million for services rendered each fiscal year for the 2020- 2021 and 2021-2022 fiscal years. Funding at this level is dependent on the actualization of the overall TBID revenues. This budget figure is inclusive but not limited to marketing strategy development and execution, creative and content production, media planning and placement (both offline and online), account management fees, and out-of-pocket expenses. However, the City reserves the right to adjust both the budget and related services. The City is open to multiple avenues of service remuneration, depending upon the preferences of the agency, in relation to TBID’s annual budget allocation. VI. Response Structure Prospective respondents are to submit proposals which demonstrate adeptness at providing an integrated (and innovative) marketing approach to digital and traditional methods of media outreach. In order to allow for varied agency models to participate in this RFP process, the TBID will accept responses including: • An individual agency may provide a response for the entire scope of services. • One agency may provide a response for the scope of the services achieved through subcontracting portions of work from alternate agencies. These proposals will need to identify the lead contracting agency and subcontracting agencies and delineate the assigned work. • Multiple agencies may collaborate to present a single proposal that includes the full scope of work. These proposals will need to demonstrate previous projects that have required similar collaboration and a clear definition of how communication will maximize the partnership of these companies. Packet Page 40 Item #7 -3- B. SCOPE OF WORK The selected agency is responsible for the comprehensive destination marketing functions across all channels of paid, owned and managed. The work effort and production encompass development of all creative, content, optimization and reporting for the TBID’s brand marketing program. I. Marketing Service Elements The following are the minimum expected elements of the marketing services efforts included in the work program for the selected agency. Brand Amplification & Management: The agency will deliver recommendations to position the existing brand in an impactful way. The agency will define and amplify the unique selling proposition for San Luis Obispo as a visitor destination to achieve increased awareness and drive demand resulting in overnight stays. Marketing Strategy, Plan & Execution: The agency will develop and successfully execute a two-year Marketing and Advertising Plan based on research and insights that supports the strategies approved by TBID. Includes Strategic Direction, Target Market/Persona Development, Creative Strategy, Brand Amplification & Management, Digital Strategy, Content Strategy, Promotional Campaigns and Media Plan. Once developed, the agency must have the ability to work the approved plan, and when needed provide insight and reasoning for tactful pivots in order to achieve the goals. The selected marketing agency is responsible for the concept creative materials/campaign elements (online, print, broadcast, etc.) as described in the Marketing and Advertising Plan. Once approved, the agency will produce and bring to final form the approved advertising materials to run on behalf of TBID. Media Buy: The agency is responsible for developing and executing the media plan presented in the Marketing and Advertising Plan approved by TBID Board. Execution includes placement, optimization, cancellations, auditing, payment to vendors and billing. Creative Services & Content Development/Management: The agency is responsible for all additional creative and content creation and/or curation for entirety of marketing efforts. This includes creating and managing content on the website (including general descriptions, ShareSLO blog, SLO Happenings event calendar), all social channels, digital newsletters & emails, advertorial copy and partner content contribution. On a regular basis, the selected agency shall provide concept and creative services including but not limited to print, web, digital media and event activation. Collateral and asset development will be provided on an as-needed basis, the selected agency is responsible for maintaining relationships with any subcontractors or vendors. Digital Management: The agency will be the principal advisor and provider to the TBID for all online and website marketing strategy, including website services, blog management, social media and subscriber database management. The website is the central marketing element for the TBID. The board is not seeking recommendations for a website redesign of VisitSLO.com. The agency will be responsible for on- going design and development enhancements, content development, site development, maintenance and hosting. This includes all written and visual content (photos, video, etc.) and applicable alt tags, metadata and key word optimization, SEO and link building & management, site ranking & Google score. The marketing agency will be responsible for creating and managing content on the ShareSLO blog including writing and posting blog copy on the website, ensuring that posts are search engine optimized, Packet Page 41 Item #7 -4- creating feature graphics and adding photos from our library and/or stock assets into the post and publishing. The agency is responsible for developing, executing and managing an annual social strategy and program including community management, engagement campaigns and a digital influencer strategy. ShareSLO is the TBID’s social identity. Current social channels include Facebook, Instagram, Twitter, Pinterest and YouTube. The agency is responsible for maintaining an e-mail automation system, managing subscriber lists and utilizing lists accordingly. The selected agency will also be responsible for the design/template customization, copy and distribution of the TBID e-newsletter. The agency will be responsible for procuring and utilizing digital service tools or resources. Public Relations Integration: Our public relations contractor (San Luis Obispo Chamber of Commerce) leads efforts to engage media with press visits/FAM tours, press releases, pitching, industry submissions and more. Our selected agency will be expected to work in conjunction with our public relations contractor to ensure that messaging is coordinated across all channels. Both our marketing contractor and public relations contractor will be expected to work from the Marketing and Advertising Plan. Reporting: The agency will be responsible for reporting on all work program outcomes to the board, staff and stakeholders. This include the production of monthly activity reports, delivery of written and verbal quarter production reports, and annual contract review reports. In collaboration with staff, the agency will produce annually the comprehensive TBID Board Annual Report in written, presentation and video forms. II. OPTIONAL SERVICES In addition to those items listed in Part B Section I, Marketing Service Elements, there are services the TBID may desire to use depending on the availability, quality and price of the service offered. Proposals are not required to address optional services in order to be considered an acceptable proposal. Final selection, however, of the successful proposal may be based on the ability of the consultant to provide these services at an acceptable price as determined by the City. • Proactive Public Relations support • Event Attraction, Production & ROI Tracking • Group Sales capabilities III. ADDITIONAL SERVICES If there are related services not otherwise identified in the RFP, the proposer may offer those to the TBID. Proposals are not required to address any additional services in order to be considered an acceptable proposal. However, final selection of the successful proposer may be based on the desirability of the additional services offered. IV. REFERENCE MATERIALS Provided below are several TBID documents and plans related to the past, current and future marketing efforts. The following should be carefully considered and integrated into the proposal: • 2018-20 Marketing Plan • 2018-19 Annual Report & Sizzle Reel • AMF Research • 2019-24 TBID Strategic Plan Packet Page 42 Item #7 -5- C. PROJECT SCHEDULE The table below shows the preliminary timeline. Proposals shall include detailed schedules (with tasks, milestones, deliverables, and meetings identified by month or quarter) that are generally consistent with the preliminary timeline. It is understood that the schedule may be adjusted based on selected agency feedback when the contract is finalized. Preliminary Schedule Tasks July – August • Marketing and Advertising Plan Development September – May • Advertising Campaign January – March • Seasonal Promotion May • Review and Budgeting D. PROJECT BUDGET As referenced in Part A Section V Contract Term & Financing, this contract will initially be funded up to $1 million for services rendered each fiscal year for the 2020- 2021 and 2021-2022 fiscal years. Funding at this level is dependent on the actualization of the overall TBID revenues. This budget figure is inclusive but not limited to marketing strategy development and execution, creative and content production, media planning and placement (both offline and online), account management fees, operational services and resource, travel, contingency funding and out-of-pocket expenses. However, the City reserves the right to adjust both the budget and related services. The City is open to multiple avenues of service remuneration, depending upon the preferences of the agency, in relation to TBID’s annual budget allocation. E. GENERAL TERMS AND CONDITIONS PROPOSAL REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue of its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be enclosed in an envelope that shall be sealed and addressed to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature opening, the proposal should be clearly labeled with the proposal title, project number, name of bidder, and date and time of proposal opening. No FAX or emailed submittals will be accepted. 3. Insurance Certificate. Each proposal must include a certificate of insurance showing: a. The insurance carrier and its A.M. Best rating. b. Scope of coverage and limits. c. Deductibles and self-insured retention. Packet Page 43 Item #7 -6- The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required until contract award. The City’s insurance requirements are detailed in Section E. 4. Proposal Quotes and Unit Price Extension. The extension of unit prices for the quantities indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount stated by any bidder for any item are not in agreement, the unit price alone will be considered as representing the bidder’s intention and the proposal total will be corrected to conform to the specified unit price. 5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened. No proposal received after the time specified or at any place other than that stated in the “Notice Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared publicly. Bidders or their representatives are invited to be present at the opening of the proposals. 7. Cooperative Purchasing. During the term of the contract, the successful bidder will extend all terms and conditions to any other local governmental agencies upon their request. These agencies will issue their own purchase orders, will directly receive goods or services at their place of business and will be directly billed by the successful bidder. 6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested as the primary submitter in more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other bidders submitting proposals. 8. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged but will be permitted. However, any such oral communication shall not be binding on the City. CONTRACT AWARD AND EXECUTION 9. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the “special terms and conditions” in Section C of these specifications for proposal evaluation and contract award criteria. 10. Competency and Responsibility of Bidder. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of bidders. Bidders will provide, in a timely manner, all information that the City deems necessary to make such a decision. Packet Page 44 Item #7 -7- 11. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. CONTRACT PERFORMANCE 12. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section E of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution. 13. 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. 14. 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. 15. 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. 16. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 17. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 18. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 19. 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. 20. 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. 21. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United Packet Page 45 Item #7 -8- 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. 22. 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. 23. 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 o n 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. 24. 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). 25. 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. 26. 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. 27. 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. 28. Hold Harmless and Indemnification. (a) Non-design, non-construction Professional Services: 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 Packet Page 46 Item #7 -9- 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 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. Packet Page 47 Item #7 -10- The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance. 29. 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. 30. 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. 31. 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 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. Packet Page 48 Item #7 -11- SPECIAL TERMS AND CONDITIONS 1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms and Conditions) of these specifications, the contract will be awarded to the lowest responsible, responsive proposer. 2. Sales Tax Reimbursement. For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues. Therefore, for bids from retail firms located in the City at the time of proposal closing for which sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the proposal by the City in calculating and determining the lowest responsible, responsive proposer. 3. Labor Actions. In the event that the successful proposer is experiencing a labor action at the time of contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right to declare said proposer is no longer the lowest responsible, responsive proposer and to accept the next acceptable low proposal from a proposer that is not experiencing a labo r action, and to declare it to be the lowest responsible, responsive proposer. 4. Failure to Accept Contract. The following will occur if the proposer to whom the award is made (Contractor) fails to enter into the contract: the award will be annulled; any bid security will be forfeited in accordance with the special terms and conditions if a proposer's bond or security is required; and an award may be made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if it were the party to whom the first award was made. 5. Contract Term. The supplies or services identified in this specification will be used by the City for up to one year. The prices quoted for these items must be valid for the entire period indicated above unless otherwise conditioned by the proposer in its proposal. 6. Contract Extension. The term of the contract may be extended by mutual consent for one additional two-year term, for a total of four years. 7. Supplemental Purchases Supplemental purchases may be made from the successful proposer during the contract term in addition to the items listed in the Detail Proposal Submittal Form. For these supplemental purchases, the proposer shall not offer prices to the City in excess of the amounts offered to other similar customers for the same item. If the proposer is willing to offer the City a standard discount on all supplemental purchases from its generally prevailing or published price structure during the contract term, this offer and the amount of discount on a percentage basis should be provided with the proposal submittal. 8. Contractor Invoices. The Contractor may deliver either a monthly invoice to the City with attached copies of detail invoices as supporting detail, or in one lump-sum upon completion. Packet Page 49 Item #7 -12- 9 Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail Proposal Submittal Form, as well as any supplemental items, from other vendors during the contract term. 10. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog numbers used in the specifications are for the purpose of describing and establishing general quality levels. Such references are not intended to be restrictive. Proposals will be considered for any brand that meets or exceeds the quality of the specifications given for any item. In the event an alternate brand name is proposed, supplemental documentation shall be provided demonstrating that the alternate brand name meets or exceeds the requirements specified herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer, and the City shall be the sole judge in making this determination. 11. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis Obispo by the successful proposer and received by the City within 90 days after authorization to proceed by the City. 12. Start and Completion of Work. Work on this project shall begin immediately after contract execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated with City by mutual agreement. 13. Change in Work. The City reserves the right to change quantities of any item after contract award. If the total quantity of any changed item varies by 25% or less, there shall be no change in the agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of 25% shall be subject to negotiation with the Contractor. 14. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package. 15. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the RFP package. Packet Page 50 Item #7 -13- PROPOSAL CONTENT 1. Proposal Content. Your proposal must include the following information: Submittal Forms o Proposal submittal summary. o Certificate of insurance. o References from at least three contacts for whom you have provided similar services. o Professional work product samples. Qualifications & Description of Prosper o Services & Activities. Provide a description of the nature of the agency’s services and activities. Provide the year in which the agency was formed and any acquisitions in the past 5-years. Note the company’s history and expertise in travel and tourism advertising. List the address from which the primary work on the contract would be performed and size of agency by headcount. List the number of full and part-time employees. Do not list any subcontractors in this section. o Conflicts of Interest. List all tourism-related clients for whom you have acted in the United States during the past 18 months. You must certify that there are no conflicts of interest between any existing contracts. Client relationships that could potentially be a conflict of interest must be listed together with a discussion of how the agency will resolve the potential conflict of interest. The selected agency cannot be working with a DMO located in San Luis Obispo County during the contract period. o Personnel/Management. Identify those individuals on the agency’s account team who will manage the contract work by position title. Include a description of the duties for each position title. Identify specific individuals who will be conducting day-to-day activities. Include the number of years employed by the agency. Note who will be the contract manager and primary contact. Please indicate availability and accessibility of agency resources and staff devoted to this campaign. o Subcontractors. Identify all proposed subcontractors. Document which portions of service they will be perform and address their ability to perform the work. Additionally, Proposer should submit signed letters of commitment for all proposed subcontractors. The use of subcontractors is subject to approval by the Tourism Manager. In the case subcontractors are approved their costs will be the responsibility of the agency and should be included in the proposal and Scope of Work (SOW). o Statement and explanation of any instances where your agency or subcontractors has been removed from a project or disqualified from proposing on a project. Packet Page 51 Item #7 -14- Scope of Work Acknowledgment For each of the following project areas, the Proposer should prove capability; describing strategies to be used and quality controls. Sufficient detail must be given and must include examples of past projects, ability to meet deadlines, and managerial experience. The Proposer should demonstrate knowledge of the tourism space, knowledge and understanding of brand in marketplace, and the shifting dynamics of how consumers receive and use information today. o Website Design: Provide an overview of how your agency approaches website design. Discuss your experience inheriting a project with an existing website. Discuss a strategy to develop a design enhancements that not only meets the technical and communication requirements for TBID and its lodging members, but ensures an engaging, memorable experience to consumers, encourages repeat visits over time and incorporates current technology, customer experience and trends. Discuss your familiarity and experience using a WordPress based site. o Marketing Planning: Discuss your strategic account planning process. What goes into the development of a plan? What type of research do you do? How do you create a unique selling proposition for a destination? Etc. o Advertising Campaign Development: Demonstrate how your agency develops a holistic approach to client brand advertising, integrating interactive, including social, into the overall strategy. Include how your media planning has changed due to barriers effecting traditional advertising. How does your agency approach extend beyond the standard traditional ad placements? Exemplify how your agency has evolved based on the way consumers receive and use information today. o Production/Creative: Do you do production in-house? If so, what aspects? If not, how do you manage production? Is your creative team located in the office that this account will be managed? Show current and/or past client examples of how your brand development moves across all mediums. o Media Planning & Buying: Provide us with your process in deciding where, when, and how to purchase media. What tools or analytics do you use? What elements determine your purchasing decisions? Optimization strategy? Give us an overview of your philosophy as it relates to planning and buying media domestically for a budget of our size and tracking/optimizing to metrics. o Promotional and Strategic Partnerships: Where do strategic partnerships or alliances fit into your overall approach? How have you used strategic partnerships to extend a client’s budget and exposure? Please provide examples or case studies of big picture strategic partnerships you have facilitated in the past. o Social Media: Show us how you integrate social media into a brand strategy and how you would approach a domestic social strategy. Discuss your experience and success utilizing influencers in your strategy. o Public Relations: Discuss your agency’s experience in destination communication. How would you approach integrating PR efforts performed by a partner into the larger Packet Page 52 Item #7 -15- program? What is your experience pitching top tier media? o Research & Analytics: Provide an overview of how you determine success. What are the analytic tools or services that you use, and what type of information will you be reporting back to TBID monthly as it relates to meeting our objectives? Please define how your analytics can be converted into insights, and how the insights will help guide us in making decisions on how we market in the future. o Travel and Administration: Estimate travel (attend TBID Board meetings), monthly marketing committee meetings (can be done virtually), internal weekly team meetings (can be done virtually), communication and postage/shipping expenses expected to incur during contract period, and any additional reserve funds to be held for marketing contingencies. Innovation Case Study The TBID is constantly seeking new opportunities to connect with our target audiences and build and leverage the power of the San Luis Obispo brand. Provide a case study that demonstrates how your agency has pushed a client beyond the norm for their industry and achieved success. The example does not have to be tourism specific. Work Program o Work Plan: Submit a preliminary work plan or schedule for the completion of the following project tasks based on a contract period of July 1, 2020 – June 30, 2022. The objective of the work plan is to give TBID an opportunity to study how Proposers would schedule various elements and distribute the workload among staff. Include the estimated hours for your staff in performing each phase of the work, including subcontractors, so we can clearly see who will be doing what work, and how much time it will take. The Work Plan should include a schedule for completion of the following project tasks: o Brand evaluation for depth and execution o Strategic Marketing Planning o Advertising Campaign Development o Production/Creative Services/Content Development o Website Enhancements o Media Planning & Buying o Research & Analytics o Reporting o Any other information that would assist us in making this contract award decision. o Description of assumptions critical to development of the response which may impact cost or scope. Budget Proposer shall provide an overview of how they would allocate the TBID budget using percentages. These allocations will be used to demonstrate your agency’s philosophy on resource Packet Page 53 Item #7 -16- allocation and compensation. If commission or other fees are part of the media or production breakdown, proposers must list the percentage rates of those commissions and fees. Please also provide your point of view on compensation – commission, retainer, hourly fees or any hybrid approach. Please provide a cost proposal/rate sheet for all work elements described in this RFP. Cost proposal must contain any and all costs that would be invoiced to the SLO TBID for the performance of these services. The proposal should contain: • Hourly billing rates • Projected hours by task • Any additional costs/charges (e.g., travel, print, etc.) • Annual rate increases, if any • Terms of payment References o The names, email addresses and phone numbers of a least three clients we may contact. Projects done for these clients should be similar in scope and style to the RFP. o Three examples of quality deliverables produced in the past two years. Proposal Length o Proposers will provide a maximum 30-page proposal. This page limit for proposal content is exclusive of a cover sheet and required City forms and appendices. 2. Proposal Evaluation and Selection. Proposals will be evaluated by the TBID Board using a two- phase selection process as follows: Phase 1 – Written Proposal Review/Finalist Candidate Selection. The written proposals will be evaluated on the following criteria: o Understanding of the work required by the TBID. o Quality, clarity and responsiveness of the proposal. o Demonstrated competence and professional qualifications necessary for successfully performing the work required by the TBID. o Recent team experience in successfully performing similar services. o Creativity of the proposed approach in completing the work. o Value. o Writing skills. o References. o Background and experience of the specific individuals managing and assigned to this project. Phase 2 – Oral Presentations and Consultant Selection. Finalist candidates will make 1-2 oral presentations to the TBID Board and staff. The purpose of this second phase is to clarify and resolve any outstanding questions or issues about the proposal and to evaluate the proposer’s ability to clearly and concisely present information orally. The contract award will not be based solely on price, but on a combination of factors as determined Packet Page 54 Item #7 -17- to be in the best interest of the TBID. After evaluating the proposals and discussing them further with the finalists or the tentatively selected contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. 3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award. The schedule is subject to change. o Issue RFP January 21, 2020 o Pre-Proposal Conference (optional) February 6, 2020 o Intent to Bid (optional) February 18, 2020 o Receive proposals February 28 @ 3:00 pm o Complete proposal evaluations Week of March 16, 2020 o Conduct finalist interviews #1 Week of April 6, 2020 o Conduct finalist interviews #2 Week of April 27, 2020 o Finalize recommendation May 13, 2020 o Execute contract May 25, 2020 o Start work July 1, 2020 4. Pre-Proposal Conference. An optional pre-proposal conference will be held at the following location, date, and time to answer any questions that prospective bidders may have regarding this RFP: February 6, 2020 at 09:00 am PST (605) 475-4000, Code: 695684 5. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City and shall be delivered to the City upon demand. 6. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Contractor as part of the work or services under these specifications shall be the property of the City and shall not be made available to any individual or organization by the Contractor without the prior written approval of the City. 7. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Contractor is required to furnish in limited quantities as part of the work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 8. Required Deliverable Products. The Contractor will be required to provide: o One electronic submission - digital-ready original .pdf of all final documents. If you wish to file a paper copy, please submit in sealed envelope to the address provided in the RFP. o Corresponding computer files compatible with the following programs whenever possible unless otherwise directed by the project manager: Word Processing: MS Word Spreadsheets: MS Excel Packet Page 55 Item #7 -18- Desktop Publishing: InDesign Virtual Models: Sketch Up Digital Maps: Geodatabase shape files in State Plan Coordinate System as specified by City GIS staff o City staff will review any documents or materials provided by the Contractor and, where necessary, the Contractor will be required to respond to staff comments and make such changes as deemed appropriate. ALTERNATIVE PROPOSALS 9. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternative and discuss under what circumstances the City would prefer one alternative to the other(s). 10. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Contractor at up to [number] public meetings to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing work-scope tasks. 11. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the plans and specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence o f the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal. To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful bidder to achieve the project’s objective or standard beyond the amounts provided there for in the proposal. In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described Packet Page 56 Item #7 -19- written notice within one (1) working day of contractor's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute. Packet Page 57 Item #7 -20- SECTION G: FORM OF AGREEMENT AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [day, date, year] by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [CONTRACTOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, on [date], City requested proposals for [______________], per Project No. [xxxx] WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said project; NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until acceptance or completion of said project. 2. INCORPORATION BY REFERENCE. City Project No. [xxxxx] and Contractor’ proposal dated [date], are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing the services as specified in this Agreement, City will pay, and Contractor shall receive therefore compensation [xxxxxxx]. Contractor shall be eligible for compensation installments after completion of milestone Tasks -E as shown in the attached project schedule. 4. CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by this Agreement and the said specifications. 5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager. 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto. Packet Page 58 Item #7 -21- 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City Name Dept. Address Consultant Name Title Address Address 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that everyone executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. CITY OF SAN LUIS OBISPO: By:_____________________________________ City Manager APPROVED AS TO FORM: CONSULTANT: ________________________________ By: _____________________________________ City Attorney Name of CAO / President Its: CAO / President Packet Page 59 Item #7 -22- SECTION H: INSURANCE REQUIREMENTS Consultant Services The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Errors and Omissions Liability insurance as appropriate to the consultant's profession. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. General Liability: Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 2. Automobile Liability: Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Vendor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. 3. Employer's Liability: Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to the City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees and volunteers. 4. Errors and Omissions Liability: Contractor shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Packet Page 60 Item #7 -23- Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. 5. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Agency, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Vendor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Vendor hereby waives its own right of recovery against Agency, and shall require similar written express waivers and insurance clauses from each of its subconsultants. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Packet Page 61 Item #7 -24- SECTION I: PROPOSAL SUBMITTAL FORM The undersigned declares that she or he has carefully examined Specification No. 97-8, which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following not to exceed cost quoted in full: Description 2020-21 2021-22 Tourism Marketing Services TOTAL $ $ ❑ Certificate of insurance attached; insurance company’s A.M. Best rating: __________________. Firm Name and Address Contact Phone Signature of Authorized Representative Date Packet Page 62 Item #7 City of San Luis Obispo Specification No. 9xxxx -25- REFERENCES Number of years engaged in providing the services included within the scope of the specifications under the present business name: . Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1: Agency Name Contact Name Telephone & Email Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 2: Agency Name Contact Name Telephone & Email Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Packet Page 63 Item #7 City of San Luis Obispo Specification No. 9xxxx -26- Reference No. 3 Agency Name Contact Name Telephone & Email Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Packet Page 64 Item #7 City of San Luis Obispo Specification No. 9xxxx -27- STATEMENT OF PAST CONTRACT DISQUALIFICATIONS The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances. ◼ Do you have any disqualification as described in the above paragraph to declare? Yes ❑ No ❑ ◼ If yes, explain the circumstances. Executed on at _______________________________________ under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. ______________________________________ Signature of Authorized Proposer Representative Packet Page 65 Item #7 DRAFT Minutes – Tourism Business Improvement District Board Meeting of 12/11/19 Pg. 1 Minutes - DRAFT TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD Wednesday, December 11, 2019 Regular Meeting of the Tourism Business Improvement District Board CALL TO ORDER The regular meeting of the San Luis Obispo Tourism Business Improvement District Board was called to order on Wednesday, December 11, 2019 at 10:01 a.m. in City Hall’s Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Chair Bruce Skidmore. ROLL CALL Present: Chair Bruce Skidmore and Board Members Nipool Patel, LeBren Young-Harris (10:16 a.m. arrival) Kristin Battaglia, and Pragna Patel-Mueller Absent: Dean Hutton and John Conner Staff: Tourism Manager Molly Cano and Tourism Coordinator Chantal Burns PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Caroline Whitaker and Kelsey Prins from Hotel Cerro introduced themselves. --End of Public Comment-- CONSENT ITEMS C.1 Minutes of Meeting on Wednesday, November 13, 2019 C.2 Smith Travel Report C.3 SLO Chamber Public Relations Activities Report C.4 AMF + Matchfire Marketing Services Report C.5 SLO Chamber Guest Services Report C.6 Transient Occupancy Tax (TOT) Report C.7 Q2 SLO Happenings Event Promotion Sponsorships Public Comment None. --End of Public Comment-- ACTION: MOTION BY COMMITTEE MEMBER PATEL-MUELLER, SECONDED BY COMMITTEE MEMBER PATEL, CARRIED 4-0-3, TO APPROVE THE CONSENT AGENDA ITEMS 1 THRU 7. Packet Page 66 Item #7 DRAFT Minutes – Tourism Business Improvement District Board Meeting of 12/11/19 Pg. 2 BUSINESS ITEMS 1. 2020-2022 TBID MARKETING SERVICES RFP Tourism Manager Cano and RFP Taskforce members presented the draft RFP document and its highlights. Board members discussed the different components of the draft document and provided feedback. After taking action on the Marketing Services RFP, board members reviewed the draft Evaluation Sheet and discussed the evaluation points. Board members provided direction to staff to adj ust the total available evaluation points to a total scale of 100 points (50 points available for Administration and 50 points available for Scope of Work). Public Comments: None. ---End of Public Comments--- ACTION: MOTION BY BOARD MEMBER PATEL-MUELLER, SECOND BY BOARD MEMBER PATEL CARRIED 6-0-3, to move and approve the draft 2020-2022 TBID Marketing Services RFP document as presented. TBID LIAISON REPORTS AND COMMUNICATION 1. Hotelier Update – • Hotel Cerro is planned to open next month • Liaison property outreach • New legislative issues 2. Management Committee Update - December 5, 2019 minutes are in the packet for review. 3. Marketing Committee Update – December 4, 2019 minutes are in the packet for review. 4. PCC Update – November 13, 2019 minutes in packet for review. 5. Visit SLO CAL Update – Tourism Manager Cano and Vice Chair Patel; • The December Marketing Committee was cancelled • Upcoming staffing changes • Spartan Race event sponsorship • Visitor Center update 6. Tourism Program Update – Tourism Manager Cano; • CCTC East Coast Campaign and shift in president • Upcoming meeting with Cal Poly NSTP to start discussing SLO Discovery Weekends • Event sponsorship updates • Open recruitment for advisory bodies ADJOURNMENT The meeting was adjourned at 11:00 a.m. The next Tourism Business Improvement District Board meeting is scheduled for Wednesday, January 8, 2019 at 10:00 a.m., at City Hall, 990 Palm Street, San Luis Obispo, CA. APPROVED BY THE TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD: XX/XX/XXXX Packet Page 67 Item #7 Page intentionally left blank. Packet Page 68 Item #7 Department Name: Administration Cost Center: N/A For Agenda of: January 14, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Georgina Bailey, Cannabis Program Coordinator/Management Fellow SUBJECT: SECOND READING OF ORDINANCE NO. 1673 (2019 SERIES) AMENDING SECTION 9.10.070 RECOMMENDATION Adopt an Ordinance No. 1673 (Attachment A) amending Municipal Code Section 9.10.070 (Cannabis Regulations) clarifying unsuccessful applicants’ ability to apply during separate application periods in the same year. DISCUSSION On December 3, 2019 the City Council voted 5:0 to introduce Ordinance No. 1673 (2019 Series) amending Section 9.10.070 of the City’s Municipal Code which clarifies that an applicant is not limited to submitting an application only during the annual application period, but if any other application period(s) are opened by the City Manager, the same applicant, previously not recommended for a permit, may submit another application for a contingent cannabis operator permit. Background Previous Council or Advisory Body Action • December 3, 2019 Council introduces Ordinance 1673 (2019 Series) amending Section 9.10.070 of the City’s Municipal Code. • November 27, 2018 the City Council approves the fee structure, application criteria and zoning regulations to allow for cannabis businesses to operate in the City. Policy Context The updates to the City’s Municipal Code Section 9.10.070 are consistent with overall goals of cannabis regulations in the Fiscal Health Response Plan, the City’s 2019-2021 Major City Goals and all other applicable sections of the Municipal Code. Cannabis regulations and fees are an important piece of the Fiscal Health Response Plan and Fiscal Sustainability and Responsibility Major City Goal, which seeks to bring in new revenue while sustaining economic development in the City, and the update to the City’s Municipal Code supports these goals. Furthermore, it is the general best practice for the City to provide the most clear and concise regulations to benefit the community, businesses, staff, and the City Council. Staff believes Ordinance 1673 (2019 Packet Page 69 Item #8 Series) will not only provide more clarity to those applying for cannabis operator permits, but also potentially bring in more applicants. Public Engagement The initial cannabis regulations were considered and adopted by the City Council on May 15, 2018; October 16, 2018; and November 27, 2018. Since that time, staff have been in regular communication with applicants, business operators and industry representatives, receiving feedback on a wide range of issues related to the implementation of the Cannabis Business Program. Staff has also met with applicants and operators to obtain input on the applicati on and permitting process in order to continuously improve the program. Lastly, in the staff report and during the December 3, 2019 City Council meeting, staff stated that this item would be brought before City Council and community stakeholders were encouraged to attend and share their recommendations with the City Council. CONCURRENCE A Steering Committee of City staff members including Administration staff, City Attorney, the Community Development Director, Finance Director, Fire Marshal, and Police Chief, was convened to guide the process of developing the amendment of Municipal Code Section 9.10.070 for consideration by the City Council. ENVIRONMENTAL REVIEW No updates staff are proposing for Cannabis Updates require a CEQA component and is exem pt from environmental review as a Statutory Exemption under Section 15262 of the CEQA Guidelines, feasibility and planning studies. Additionally, 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: No Budget Year: 2019-2020 Funding Identified: No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund n/a n/a n/a n/a State Federal Fees Other: Total n/a n/a n/a n/a Packet Page 70 Item #8 There is no fiscal impact in amending the Municipal Code clarifying unsuccessful applicants’ ability to apply during separate application periods in the same year. ALTERNATIVES 1. Do not adopt staff recommendation. This is not recommended as it does not align with the City Council’s overall intention to enhance clarity and cost effectiveness in the application process and Cannabis Regulations. Likewise, this is not recommended as it does not align with the City Council’s overall intention to obtain qualified cannabis business operators in the City. 2. Modify and Direct Staff Recommendation. The City Council has the latitude to make modifications to Ordinance 1673 (2019 Series) and Staff will be prepared to offer any ideas for any modifications. Attachments: a - Ordinance 1673 Packet Page 71 Item #8 O 1673 ORDINANCE NO. 1673 (2019 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE PUBLIC PEACE, MORALS AND WELFARE (CHAPTER 9.10) REGULATIONS FOR COMMERCIAL CANNABIS BUSINESS BUSINESSES AND PERSONAL CULTIVATION WHEREAS, the City of San Luis Obispo adopted on December 3, 2019, in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, an amendment to the Municipal Code, Chapter 9.10, Regulations for Commercial Cannabis and Personal Cultivation (Exhibit A); and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 9.10.070, subsection A of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: A. Application. A person shall apply for a commercial cannabis operator permit by submitting an application to the city during the annual application period or any other period established by City Manager. The City Council will, by resolution, adopt criteria by which all applications will be reviewed, applicants qualified and, in the case of retail and cultivation businesses, also ranked. Those applicants that are selected will have the opportunity to apply for a use permit as outlined in Section 17.86.080. Each application shall designate at least one responsible party. If a person is not selected to receive a commercial cannabis operator permit, the person may reapply during the next annual application period or any subsequent application period established by the City Manager. SECTION 2. Section 9.10.070, subsection B of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: B. Application Submittal Timeframe. A person may only submit one application per permit type, per application period, for a commercial cannabis operator permit, during the annual application period designated by resolution of the city council or any subsequent application period established by the City Manager. An Applicant who is unsuccessful in any application period may submit another application in any subsequent application period. The commercial cannabis operator permit will be valid for twelve months. Once a permit is obtained, the applicant can apply annually for renewal. There is no guarantee that an applicant will receive a commercial cannabis operator permit in the first instance. Due to limitations on the number of certain permits, even a highly ranked applicant for a retail or cultivation permit may not receive a commercial cannabis operator permit and even an applicant who receives a commercial cannabis operator permit is not guaranteed that any subsequent, required land use permit, as outlined in Section 17.86.080, will be approved. Packet Page 72 Item #8 Ordinance No. 1673 (2019 Series) Page 2 O 1673 SECTION 3. Ordinance Number 1647 (2018 Series) is hereby amended and superseded to the extent inconsistent herewith. 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. 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 3rd day of December 2019, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 14th day of January 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, this ______ day of ______________, 2020. ______________________________ Teresa Purrington, City Clerk Packet Page 73 Item #8 Ordinance No. 1673 (2019 Series) Page 3 O 1673 Exhibit A – Section 9.10 – Cannabis Regulations Chapter 9.10 Cannabis Regulations 9.10.010 Purpose and Intent. 9.10.020 Definitions 9.10.030 Personal Cultivation Limited 9.10.040 Commercial Cannabis/City Permit and State License Required 9.10.050 Regulations and Fees 9.10.060 Display and Production of Permits 9.10.070 Commercial Cannabis Operator Permit Application Procedures and Requirements. 9.10.080 Renewal of Permit 9.10.090 Suspension or Revocation of Permit 9.10.100 Appeal 9.10.110 Right to Occupy and Use Property for Commercial Cannabis Activity 9.10.120 Prohibition on Transfer of Commercial Cannabis Operator Permits. 9.10.130 Records and Reporting. 9.10.140 Inspection and Enforcement. 9.10.150 Outdoor Commercial Cannabis Cultivation and Activities Prohibited 9.10.160 Indemnification, Insurance, Reimbursement, Consent 9.10.170 Compliance with Laws 9.10.180 Permit Violation 9.10.190 Permit Compliance Monitoring 9.10.200 Permit Holder Responsible for Violations by Employees or Agents 9.10.210 Consumption or Use Prohibited On-site and In Public 9.10.220 Concurrent Alcohol Sales or Service Prohibited 9.10.230 Minors 9.10.240 Sale of Cannabis, Cannabis Products or Cannabis Accessories by Vending Machine prohibited 9.10.250 Security Measures 9.10.260 Limitations on City’s Liability. 9.10.270 Fees Deemed Debt to City 9.10.280 Violation and Penalties 9.10.290 Severability 9.10.010 Purpose and Intent. A. It is the primary purpose and intent of this Chapter to protect the health, safety, and welfare of the residents of the City of San Luis Obispo from the negative impacts of illegal commercial and non-commercial cannabis activity, and of state authorized cannabis activity, by enforcing City ordinances, rules and regulations consistent with applicable State law, including, but not limited to, the Compassionate Use Act, the Medical Marijuana Program Act, the Adult Use of Marijuana Act, and the Medicinal and Adult Use of Cannabis Regulatory and Safety Act. Packet Page 74 Item #8 Ordinance No. 1673 (2019 Series) Page 4 O 1673 B. This Chapter is not intended to, and shall not be construed to, prohibit or interfere with any right, defense or immunity under Health and Safety Code Section 11362.5 (the Compassionate Use Act), or under Health and Safety Code Section 11362.7 et. seq. (the Medical Marijuana Program Act). C. This Chapter is not intended to, and shall not be construed to, prohibit or interfere with any right, defense or immunity of any person 21 years of age or older relating to the adult personal possession or cultivation of cannabis or marijuana consistent with the provisions of the Control, Regulate and Tax Adult Use of Marijuana Act, and the Medicinal and Adult Use of Cannabis Regulatory and Safety Act. D. Nothing in this Chapter shall be construed to authorize the cultivation, possession or use of marijuana for any purpose inconsistent with state or local law. E. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulation. 9.10.020 Definitions A. State defined terms. Words or terms used in this chapter that are defined words or terms in Business and Professions Code Section 26001, or Health and Safety Code Section 11362.7 (the Statutes”) shall have the meanings ascribed to them in the Statutes as they now read, or as they may be amended to read. These state defined words and terms include, but are not limited to, “cannabis,” “cannabis accessories,” “cannabis concentrate,” “cannabis products,” “commercial cannabis activity,” “cultivation,” “delivery,” “distribution,” “license,” “live plants,” “manufacture,” “operation,” “person,” “premises,” “sell,” “sale,” “to sell.” Some of these terms are also set forth in Chapter 17.100 of this code. In the event of conflict in the definitions, the definitions in Chapter 17.100 shall control; provided the terms defined in subsection B below shall control over any other definition. B. City defined terms. The following words or terms used in this chapter have the following meanings: 1. “Commercial Cannabis Business” means any person or entity engaging in any business, operation or activity which is Commercial Cannabis Activity under state law in the City. 2. “Commercial Cannabis Operator Permit” means a permit required by the City of San Luis Obispo pursuant to this chapter to conduct Commercial Cannabis Activity or a Commercial Cannabis Business in the City. 3. “Responsible Party(ies)” shall be one or more individuals who have an ownership interest in a Commercial Cannabis Activity and are designated to be personally responsible for compliance with all terms and conditions of the Commercial Cannabis Operator Permit, all other permits required by the City, and all ordinances and regulations of the City. Any person having an ownership interest of more than fifty percent in a Commercial Cannabis Activity shall be designated a Responsible Party on the application. If no individual owns more than fifty percent of a Commercial Cannabis Activity, the individual owning the largest share shall be a Responsible Party, Packet Page 75 Item #8 Ordinance No. 1673 (2019 Series) Page 5 O 1673 and if multiple individuals have the same percentage interest, each one shall be a Responsible Party. More than one individual can be designated a Responsible Party. 4. “Cannabis Event” means a public or private event where compensation is provided or exchanged, either directly or indirectly or as part of an admission or other fee for service, for the provision, hosting, promotion or conduct of the event where consumption of cannabis is part of the activities. 9.10.030 Personal Cultivation Limited A. Maximum Six Plants Outdoors Per Parcel. It shall be unlawful for any person to plant, cultivate, harvest, dry, process, maintain, possess or store outdoors, more than six (6) live cannabis plants on any parcel containing one or more private residences. This limitation on outdoor personal cannabis activities applies per parcel, regardless of the number of residents in each private residence, and regardless of the number of residences on the parcel. This limitation applies to cannabis live plants for either adult recreational use or medicinal purposes. Outdoor personal cultivation shall comply with applicable provisions of chapter 17.99 of this Code. B. Maximum Six Plants Per Private Residence, Indoors and Outdoors. It shall be unlawful for the cumulative total of cannabis plants per private residence, indoors and outdoors, to exceed six (6) cannabis live plants, regardless of number of persons residing in the private residence. This limitation applies to cannabis live plants for either adult recreational use or medicinal purposes. Any live cannabis plants grown indoors shall comply with applicable provisions of Chapter 17.99 of this Code. C. No Outdoor Cultivation on Parcel without Private Residence. It shall be unlawful for any person to plant, cultivate, harvest, dry, process, maintain, possess or store any cannabis live plants outdoors on a parcel that does not have a private residence used for residential dwelling purposes by the person cultivating the cannabis live plants. D. Neighborhood Impacts of Personal Cultivation. There shall be no exterior evidence of cannabis cultivation occurring at the property visible by normal unaided vision from a public place or the public right-of-way and any outdoor cultivation shall comply with provisions of Chapter 17.99.040 of this code. Personal cultivation of cannabis, for recreational adult use or for medicinal purposes, shall not create odors, dust, heat, noise, light, glare smoke or other impacts to people of normal sensitivity living, working or lawfully present in the vicinity of the personal cultivation site. Impacts that cross the nearest property line of any other parcel, beyond that parcel on which the personal cultivation is conducted, or that are visible or noticeable with normal unaided vision, from a public place or the public right of way, or from any separately owned, leased or controlled private residence or business on the same parcel as the private residence responsible for the personal cultivation, are unlawful. E. No Hazardous Personal Cultivation. Personal cultivation, harvesting, drying, or processing of cannabis, for recreational adult use or medicinal purposes, that uses or stores hazardous or toxic chemicals or materials, creates hazardous or toxic products or wastes, or uses volatile Packet Page 76 Item #8 Ordinance No. 1673 (2019 Series) Page 6 O 1673 processes or other methods or substances that pose a significant risk to public health or safety, is prohibited and unlawful. 9.10.040 Commercial Cannabis/City Permit and State License Required A. City Commercial Cannabis Operator Permit Required. No person shall engage in Commercial Cannabis Activity or have an ownership interest in, operate, or manage, a Commercial Cannabis Business without obtaining and continuously maintaining a Commercial Cannabis Operator Permit pursuant to this chapter. B. Commercial Cannabis Operator Permit and State License(s) Required. It shall be unlawful for any person to own, conduct, manage, operate, engage or participate in, work or volunteer at a Commercial Cannabis Activity or Commercial Cannabis Business that does not have a valid Commercial Cannabis Operator’s Permit issued pursuant to this chapter and other City permits or licenses required by this Code, in addition to the appropriate license(s) required by state law to conduct the Commercial Cannabis Activity. Any Commercial Cannabis Business or Commercial Cannabis Activity conducted without all required City and state permits and licenses is prohibited and unlawful and is hereby declared to be a public nuisance. 9.10.050 Regulations and Fees. The City Council shall by resolution or ordinance adopt such forms, fees, regulations and procedures as are necessary to implement this Chapter with respect to the application and qualification for, and the selection, future selection, investigation, process, issuance, renewal, revocation, and suspension of, Commercial Cannabis Operator Permits. 9.10.060 Display and Production of Permits A. Dual Permits Posted and Visible. A copy of the Commercial Cannabis Operator Permit issued by the City of San Luis Obispo pursuant to this Chapter, together with a copy of the appropriate state license(s) for the Commercial Cannabis Activity being conducted, shall be posted and readily visible to the public at all times, at each location where Commercial Cannabis Activity occurs. B. Production of Originals for Inspection. Any owner, operator , employee or person in charge of a Commercial Cannabis Activity shall produce for inspection and copying, upon request of a City inspector, code enforcement officer, or City police officer during normal operating hours, the original of the current and valid City of San Luis Obispo Commercial Cannabis Operator Permit and the appropriate, current and valid license(s) of the State of California for the Commercial Cannabis Activity(ies) or Commercial Cannabis Business(es) being conducted. 9.10.070 Commercial Cannabis Operator Permit Application Procedures and Requirements A. Application. A person shall apply for a commercial cannabis operator permit by submitting an application to the city during the annual application period or any other period established by Packet Page 77 Item #8 Ordinance No. 1673 (2019 Series) Page 7 O 1673 City Manager. The City Council will, by resolution, adopt criteria by which all applications will be reviewed, applicants qualified and, in the case of retail and cultivation businesses, also ranked. Those applicants that are selected will have the opportunity to apply for a use permit as outlined in Section 17.86.080. Each application shall designate at least one responsible party. If a person is not selected to receive a commercial cannabis operator permit, the person may reapply during the next annual application period or any subsequent application period established by the City Manager. B. Application Submittal Timeframe. A person may only submit one application per permit type, per application period, for a commercial cannabis operator permit, during the annual application period designated by resolution of the city council or any subsequent application period established by the City Manager. An Applicant who is unsuccessful in any application period may submit another application in any subsequent application period. The commercial cannabis operator permit will be valid for twelve months. Once a permit is obtained, the applicant can apply annually for renewal. There is no guarantee that an applicant will receive a commercial cannabis operator permit in the first instance. Due to limitations on the number of certain permits, even a highly ranked applicant for a retail or cultivation permit may not receive a commercial cannabis operator permit and even an applicant who receives a commercial cannabis operator permit is not guaranteed that any subsequent, required land use permit, as outlined in Section 17.86.080, will be approved. C. Grounds for Automatic Disqualification. In addition to any other reason that may be established by the City Council as a basis for disqualification, an applicant shall be disqualified from applying for, or obtaining, a Commercial Cannabis Operator Permit if: 1. The applicant fails to timely file an application during the annual application period. 2. The Responsible Party refuses to sign the application and agree to be personally responsible for compliance, and personally liable for failure to comply, with the provisions of this chapter. 3. The applicant, or any of its officers, directors or owners, or any person listed in the application, has been convicted of a felony or offense referenced in Business Professions Code Section 26057; or has been subject to fines, penalties, or sanctions for cultivation or production of a controlled substance on public or private lands or for unauthorized commercial cannabis activities as specified in Business and Professions Code Section 26057; or has had a commercial cannabis license suspended or revoked by the State of California or any city or county in any stat, within the three years preceding the date the application is filed, or is ineligible to apply for a state cannabis license. No person who has been convicted of such a felony or offense, or subject to such fines, penalties, sanctions, suspension or revocation may be engaged (actively or passively) in the operation, management or ownership of any Commercial Cannabis Business. A conviction within the meaning of this Chapter means a plea or verdict of guilty or a conviction or diversion following a plea of nolo contendere. 4. The applicant made one or more false or misleading statements or omissions in the application process. 5. Any person listed on the application is a licensed physician making patient recommendations for medical or medicinal cannabis pursuant to State law. Packet Page 78 Item #8 Ordinance No. 1673 (2019 Series) Page 8 O 1673 6. Any person listed in the application is less than twenty-one (21) years of age. D. Duration and Activation of Permit. Each Commercial Cannabis Operator Permit issued pursuant to this Chapter shall expire twelve (12) months after the date of its activation. The permittee may apply for renewal prior to expiration in accordance with this chapter. Each Commercial Cannabis Operator Permit must be activated within 12 months of issuance. The permit is activated by the issuance of a use permit for the Commercial Cannabis Activity pursuant to Chapter 17.99, together with all other applicable City permits and state licenses, and the Commercial Cannabis Operator thereafter opening and continuously operating the Commercial Cannabis Activity. Failure to timely activate the permit shall be deemed abandonment of the permit and the permit shall automatically lapse. 9.10.080 Renewal of Permit A. Renewal Application Filing Deadline. An application for renewal of a Commercial Cannabis Operator Permit shall be filed at least sixty (60) calendar days, but not more than one hundred twenty (120) calendar days, prior to the expiration date of the permit with the City Manager or his/her designee. If the complete application and fees are timely submitted but the City does not act to approve or reject the renewal prior to expiration, the permittee may continue to operate under the expired permit until the City approves or rejects the application for renewal. B. Rejection of Renewal Application. An application for renewal of a Commercial Cannabis Operator Permit shall be rejected if any of the following exists. 1. The Commercial Cannabis Operator Permit is revoked at the time of the application or renewal. 2. The applicant conducted unpermitted commercial cannabis activities in the City or continued to conduct formerly permitted commercial cannabis activities after expiration of the permit, other than as expressly permitted by this section. 3. Any of the grounds for disqualification for prequalification set forth in Section 9.10.070(C) above, or as established by the City Council, exist at the time of application for renewal, or date of renewal. 4. The permittee fails to renew any required State of California license(s), or the State revokes or suspends the license. Revocation, termination, non-issuance or suspension of a license issued by the State of California, or any of its departments or divisions, shall immediately, concurrently revoke, terminate, or suspend, respectively, the Commercial Cannabis Operator Permit. Such automatic suspension makes it illegal for a Commercial Cannabis Business or Activity to operate within the City of San Luis Obispo until the State of California, or its respective department or division, reinstates or issues the State license. An application for renewal of a Commercial Cannabis Operator Permit may be denied if any of the following exists: 1. The application is filed less than sixty (60) days before its expiration. 2. The applicant has received an administrative citation for violating any provision of this Code relating to its Commercial Cannabis Activity(ies) in the City during the last twelve months, and the administrative citation has not been resolved in the applicant’s Packet Page 79 Item #8 Ordinance No. 1673 (2019 Series) Page 9 O 1673 favor by date of application for renewal. A pending, unresolved appeal of an administrative citation shall not result in rejection of an otherwise timely and complete application, but resolution of an appeal in a manner that upholds the violation against the applicant during the application review period shall result in the immediate rejection of the application. 3. The Commercial Cannabis Business has not been in regular and continuous operation in the three (3) months immediately prior to the renewal application. 4. The Commercial Cannabis Business fails to conform to the requirements of this Chapter, any regulations adopted pursuant to this Chapter or the conditions imposed as part of any Use Permit or zoning requirements under Chapter 17.99 of this Code. 5. The Commercial Cannabis Operator Permit is suspended at the time of application or renewal. C. Effect of Rejection of Application for Renewal. Operations to Cease Pending Appeals . If a renewal application is rejected, the Commercial Cannabis Operator Permit expires on th e expiration date set forth in the permit, even if an appeal has been filed. All commercial cannabis activities in the City under the expired permit must stop until all appeals have been exhausted. A person or entity whose renewal application is rejected, and loses his/her/its appeal, must go through the annual Commercial Cannabis Business Operator Permit application process. 9.10.090 Suspension or Revocation of Permit. In addition to any other penalty authorized by law, a Commercial Cannabis Operator Permit may be suspended or revoked if the City finds, after notice to the permittee and opportunity to be heard, that the permittee or his or her agents or employees has violated any condition of the permit imposed pursuant to, or any provision of, this chapter. 1. Upon a finding by the City of a first permit violation within any five-year period, the permit shall be suspended for thirty days. 2. Upon a finding by the City of a second permit violation within any five-year period, the permit shall be suspended for ninety days. 3. Upon a finding by the City of a third permit violation within any five-year period, the permit shall be revoked. 9.10.100 Appeal. A. Qualification. Ranking of Retailers and Cultivators. A decision of the City to not qualify an applicant for a Commercial Cannabis Operator Permit, or to rank applicants for retail or cultivation licenses, or to allow qualified applicants with the highest rankings the first opportunity to apply for a Commercial Cannabis Operator Permit, shall be the final action of the City and not appealable. B. Non-renewal, Revocation or Suspension. A decision of the City to reject an application for renewal, or to revoke or suspend a Commercial Cannabis Operator Permit, is appealable to the City Manager. An appeal must be filed with the City Manager within ten working days after Packet Page 80 Item #8 Ordinance No. 1673 (2019 Series) Page 10 O 1673 the renewal has been denied, suspended or revoked. A decision of the City Manager or his or her designee is appealable to the City Council in accordance with Chapter 1.20 of this Code. C. Effect of Suspension. During a period of license suspension, the Commercial Cannabis Business shall remove from public view, all cannabis and cannabis products, and shall not conduct any Commercial Cannabis Activity. D. Revocation. Notice to State. Pursuant to Business and Profession Code Section 26200 (c), the City Manager or his or her designee shall promptly notify the Bureau of Cannabis Control within the Department of Consumer Affairs, upon City’s revocation of any local license, permit, or authorization for a state licensee to engage in commercial cannabis activity within the City. 9.10.110 Right to Occupy and to Use Property for Commercial Cannabis Activity. As a condition precedent to the City’s issuance of a Commercial Cannabis Operator Permit pursuant to this Chapter, any person intending to open and operate a Commercial Cannabis Business shall provide evidence satisfactory to the City of the applicant’s legal right to occupy and to use the proposed location for the proposed use, together with the approval of a use permit from the City for cannabis activity at the location. In the event the proposed location is owned by or to be leased from another person, the applicant for a permit under this Chapter shall provide a signed and notarized statement from the property owner agreeing to the operation of a Commercial Cannabis Business on the property. 9.10.120 Prohibition on Transfer of Commercial Cannabis Operator Permits. A. Business Restriction to Location on Permit. It shall be unlawful for any person to transfer a Commercial Cannabis Operator Permit to a location not specified on the permit, or to operate a Commercial Cannabis Business at any place or location other than that identified on the Commercial Cannabis Operator Permit issued pursuant to this Chapter. B. Transfer or Assignment Prohibited. No person or entity shall encumber, mortgage, lien, hypothecate, give, bequeath, sell, assign or transfer, by operation of law or otherwise, any portion of the ownership or control of a Commercial Cannabis Business or a Commercial Cannabis Operator Permit to any person who does not have a Commercial Cannabis Operator Permit from the City prior to the effective date of any action described in this sentence. The Commercial Cannabis Operator Permit permittee proposing such an action shall: 1. Notify the City in writing of the proposed action, comply with applicable regulations and provide such information as the City reasonably requests regarding the identity and qualifications of persons involved, and pay all applicable fees and charges; and 2. Provide proof that the proposed lender, lienholder, recipient, heir, buyer, assignee, transferee, or other potential recipient of any portion of the ownership or control, at the time of the notice and effective date of the proposed action, is qualified by the City to apply for a Commercial Cannabis Operator Permit and the proposed action is Packet Page 81 Item #8 Ordinance No. 1673 (2019 Series) Page 11 O 1673 conditioned on the City issuing to the person a new or amended Commercial Cannabis Operator Permit. 3. Notify the city in writing within ten (10) calendar days of the action becoming final with the names and contact information of the new persons involved, together with a request that the City issue either a new or amended Commercial Cannabis Operator Permit, as applicable. C. Assignment Null and Void. Any attempt to transfer, sell, assign, give, or lien, or any transfer, sale, assignment, gift or lien, of a Commercial Cannabis Operator Permit issued pursuant to this Chapter, by operation of law or otherwise, in violation of this chapter, is prohibited. Any such action immediately voids, nullifies and terminates the Commercial Cannabis Operator Permit, which shall be of no further force or effect. 9.10.130 Records and Reports. A. City Access to Records. Subject to the Health Insurance Portability and Accountability Act (HIPAA) regulations, each Commercial Cannabis Business shall allow City of San Luis Obispo officials to have access to the Commercial Cannabis Business’s books, records, accounts, and any and all data relevant to its permitted activities for the purpose of conducting an audit, examination or inspection. Books, records, accounts, and any and all relevant data will be produced no later than twenty-four (24) hours after receipt of the City’s request or within a reasonable time as authorized in writing by the City. B. Annual Audit. Each Commercial Cannabis Business shall file with the City Manager or his/her designee an audit of its financial operations for the previous fiscal year, complete and certified by an independent certified public accountant in accordance with generally accepted auditing and accounting principles. The audit shall include but not be limited to a discussion, analysis, and verification of each of the records required to be maintained pursuant to this Chapter. The information contained in the audit shall be made available in standard electronic format which shall be compatible with programs and software used by the City, and which can easily be imported into either Excel, Access or any other contemporary software designated by the City Manager. C. Inventory Control system. All Commercial Cannabis Businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing and distribution processes until sold or distributed. All Commercial Cannabis Businesses shall maintain records of all sales or transfers of cannabis and cannabis products. D. Employee Registry. Each owner and/or operator of a Commercial Cannabis Business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of all employees currently employed by the Commercial Cannabis Business and shall disclose such register to any City of San Luis Obispo official upon request. Packet Page 82 Item #8 Ordinance No. 1673 (2019 Series) Page 12 O 1673 E. Reporting and Tracking of Product and of Gross Sales. Each Commercial Cannabis Business shall have in place a point-of-sale tracking system to track and to report on all aspects of the Commercial Cannabis Business including, but not limited to, such matters as cannabis tracking, inventory data, and gross sales (by weight and by sale) and shall ensure that such information is compatible with the City’s record-keeping systems. The system must have the capability to produce historical transactional data for review by the City of San Luis Obispo. All information provided to the City pursuant to this sub-Chapter shall be confidential and shall not be disclosed, except as may otherwise be required under law. F. Maintenance of Records. All records required by this Chapter shall be maintained by the Commercial Cannabis Business for a period of not less than seven (7) years and shall otherwise keep accurate records of all Commercial Cannabis Business activity and provide such records for inspection consistent with this Code or any rules the City Council by resolution or ordinance. 9.10.140 Inspection and Enforcement. A. Unscheduled Inspection during Business Hours. The City Manager or his/her designee and any other City of San Luis Obispo official or inspector charged with enforcing any provisions of this Code, may enter a Commercial Cannabis Business at any time during the hours of operation without notice for the purpose of inspecting the Commercial Cannabis Business for compliance with the provisions of this Code, the terms and conditions of the Commercial Cannabis Operator Permit or any other City permit or state license, including inspection of the recordings and records maintained pursuant to this Chapter or the applicable provisions of State law. The right to inspect under this inspection includes the right to copy recordings and records. B. Interference with Inspection. It is unlawful for any person who owns, operates, manages or is employed by, or has any responsibility over the operation of, a Commercial Cannabis Business, to refuse to allow, or to impede, obstruct, or interfere with, an inspection by the City, or the City’s review or copying of recordings (including audio and video recordings) and records, or to conceal, destroy, alter or falsify any recordings or records. C. Obtaining Samples. The City Manager or his/her designee or any other person charged with enforcing the provisions of this Chapter may enter the location of a Commercial Cannabis Business at any time during the hours of operation and without notice to obtain samples of cannabis and cannabis products to test for law enforcement and/or public safety purposes. Any samples obtained by the City of San Luis Obispo shall be logged, recorded, and maintained in accordance with City of San Luis Obispo Police Department standards for evidence. At all other times, the City Manager or his/her designee may enter the location of a Commercial Cannabis Business to obtain samples of cannabis upon reasonable notice, as otherwise authorized by law or pursuant to a warrant. 9.10.150 Outdoor Commercial Cannabis Cultivation and Activities Prohibited. Packet Page 83 Item #8 Ordinance No. 1673 (2019 Series) Page 13 O 1673 A. Outdoor Commercial Cultivation prohibited. Outdoor commercial cannabis cultivation, including, but not limited to, cultivation in greenhouses, hoop structures, and by mixed light (part daylight/part artificial light), is prohibited and unlawful. This section prohibits all outdoor commercial cannabis cultivation, including cultivation for profit or not for profit cultivatio n, and including commercial cultivation for adult recreational use or medicinal purposes. For purposes of this section, outdoor cultivation of cannabis by cooperatives is prohibited. All commercial cannabis cultivation shall be conducted only inside a fully enclosed structure by a person or entity with a Commercial Cannabis Operator Permit, a City use permit, and appropriate State license(s). See also Section 17.99.050 G 3 of this Code. B. Outdoor Commercial Cannabis Activities Prohibited. Outdoor storage, harvesting, drying, processing, or manufacturing of commercial cannabis or cannabis products is prohibited and unlawful. 9.10.160 Indemnification, Insurance, Reimbursement, Consent. As a condition of approval of any Commercial Cannabis Operator Permit issued pursuant to this Chapter, the permittee shall, at a minimum: A. Execute an agreement to protect, indemnify, defend (at its sole cost and expense with counsel approved by City), and hold the City of San Luis Obispo and its officers, employees, attorneys, representatives, and agents harmless from and against any and all claims, demands, losses, damages, injuries, costs, expenses (including attorneys’ fees) fines, penalties, or liabilities arising from, related to or associated with: the issuance of a Commercial Cannabis Operator Permit or use permit; the permitting or approving the operation of a Commercial Cannabis Activity; the collection of any fees, taxes, or charges from a Commercial Cannabis Business; the Commercial Cannabis Business’s or any of its owners’, operators’, managers’, employees, or agents’ violation of any federal, state or local laws; the City’s suspension, revocation or refusal to renew the Commercial Cannabis Operator Permit. B. Maintain insurance with standard City coverages and limits, but with additional conditions thereon deemed necessary by the City Attorney. C. Reimburse the City of San Luis Obispo for any and all costs, expenses, attorney fees, fines, penalties and court costs that the City of San Luis Obispo may be required to pay as a result of any legal challenge related to the City’s approval of a Commercial Cannabis Operator Permit pursuant to this Chapter or any other City permit or the City of San Luis Obispo’s approval of the operation of a Commercial Cannabis Activity. The City of San Luis Obispo may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the obligations imposed under this Chapter. D. Consent to unscheduled inspections, production of records and recordings, and obtaining of samples of cannabis and cannabis products by authorized City officials during normal operating hours as provided in this chapter. 9.10.170 Compliance with Laws. Packet Page 84 Item #8 Ordinance No. 1673 (2019 Series) Page 14 O 1673 The Commercial Cannabis Business shall operate all times in compliance with all applicable state and local laws, regulations, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of the Commercial Cannabis Operator Permit or use permit or state license(s). Nothing in this Chapter shall be construed as authorizing any action which violates state law or local law with respect to the operation of a Commercial Cannabis Activity 9.10.180 Permit Violation. Compliance with all local and state cannabis-related laws shall be a condition of a City Commercial Cannabis Operator Permit and it shall be a violation of a Commercial Cannabis Operator Permit for a permittee or his or her agents or employees to violate any local or state - cannabis-related law. 9.10.190 Permit Compliance Monitoring. Compliance with this chapter shall be monitored by the San Luis Obispo police department, Code Enforcement staff and/or any other duly authorized agent of the City. Any compliance checks pursuant to this chapter shall be in addition to any under any other ordinances, regulations or permits. At least four compliance checks of each cannabis retailer shall be conducted during each twelve-month period. At least two compliance checks of each commercial cannabis business other than a retailer shall be conducted during each twelve-month period. The cost of compliance monitoring shall be incorporated into the annual renewal fee. 9.10.200 Permit Holder Responsible for Violations By Employees or Agents. The responsible person and any entity to whom a Commercial Cannabis Operator Permit is issued pursuant to this Chapter shall be responsible for all violations of the regulations and ordinances of the City of San Luis Obispo, committed by the permittee, any employee or agent of the permittee, which violations occur in or about the premises of the Commercial Cannabis Business, even if the responsible person is not present. Violations by an employee or agent may result in the termination or non-renewal of the permit by City. 9.10.210 Consumption or Use Prohibited On-site and in Public/Cannabis Event Prohibited A. It is unlawful for any person or entity: 1. To sell, give, exchange, dispense or distribute cannabis or cannabis products for on-site consumption, use or sampling on any business premises; or 2. To consume or use cannabis or cannabis products, whether by smoking, vaping, inhaling, eating, drinking or any other means: a. in, on or about the premises of any Commercial Cannabis Business; Packet Page 85 Item #8 Ordinance No. 1673 (2019 Series) Page 15 O 1673 b. in, on or about any publicly owned or operated property; any place open to, or accessible by the public; any place smoking is prohibited; or any place visible from any public place with normal unaided vision. c. in on or about any other business, club, cooperative or commercial event, regardless if open to the public or only to members, ticket holders or event invitees; d. any location where an entry or other fee is charged to attendees or to the host or where a thing of value or consideration is received or exchanged, directly or indirectly, for or related to the provision of cannabis. B. It is unlawful for any person to conduct a Cannabis Event in the City. 9.10.220 Concurrent Alcohol or Tobacco Sales or Service Prohibited. A. No person shall dispense, serve, store, give away or consume, or cause or permit the sale, dispensing, serving, giving away or consumption of alcoholic beverages or tobacco in or on the premises of a Commercial Cannabis Business. B. No person shall conduct any Commercial Cannabis Activity at any location where alcohol is sold or served. 9.10.230 Minors A. Minors shall not be allowed on the premises of a commercial Cannabis Business having either an “A” or “M” license, or both, even if accompanied by a parent or guardian. B. No person under 21 years of age shall be allowed on the premises of a Commercial Cannabis Business having either an “A” or “M” license or both. C. Every entrance to an “A” or “M” licensed Commercial Cannabis Business shall be clearly and legibly posted with the following notice: “ENTRY ONTO THESE PREMISES BY PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. VALID PHOTO ID REQUIRED.” Each letter of the notice must be at least two inches high and clearly visible. D. No person, business, or other entity conducting a Commercial Cannabis Activity with either an “A” or “M’ state license shall employ any person who is not at least twenty-one (21) years of age. 9.10.240 Sale of Cannabis Products or Cannabis Accessories by Vending Machine prohibited A. No person shall locate, install, keep, maintain or use, or permit the location, installation, keeping, maintenance or use on his, her or its premises of any cannabis vending machine used or intended to be used for the purpose of selling any cannabis products or cannabis accessories therefrom. Packet Page 86 Item #8 Ordinance No. 1673 (2019 Series) Page 16 O 1673 B. No person, business, or other entity shall sell, offer for sale, or display for sale any cannabis product by means of a self-service display or vending machine. All cannabis products shall be offered for sale exclusively by means of vendor/employee assistance. C. “Vending machine” means any electronic or mechanical device or appliance the operation of which depends upon the insertion of money, whether in coin or paper bill, or debit or credit card, or other thing representative of value, which device or appliance dispenses or releases cannabis, cannabis product(s) and/or cannabis accessories. 9.10.250 Security and Public Safety Measures. A. The City Manager or his/her designee(s) is authorized to promulgate all regulations necessary to implement the requirements and fulfill the purposes and policies of this Chapter, including but not limited to enforcement, background checks for applicants, approval and enforcement of a Commercial Cannabis Activity security plan, including audio and video recordings of operations, and verification of compliance. B. Every Commercial Cannabis Activity and every Commercial Cannabis Activity shall have a security plan approved by the Chief of Police or designee prior to issuance of a City Commercial Cannabis Operator Permit. C. Hours of Operation. a. Retail - Storefront. Retail-Storefront Commercial Cannabis Business shall not operate between the hours of 8 PM and 9 AM. b. Retail-Non-Storefront (Delivery Services). Retail-Non-Storefront (Delivery Services) Commercial Cannabis Business shall not operate between the hours of 10 PM and 6 AM. c. Commercial Other than Retail. All Commercial Cannabis Activity other than Retail is prohibited between the hours of 10 PM and 7 AM. 9.10.260 Limitations on City’s Liability. The City shall not be liable for issuing, or failing or refusing to issue, suspending, revoking or failing to renew a Commercial Cannabis Operator Permit pursuant to this Chapter or otherwise approving or disapproving the operation of any Commercial Cannabis Business pursuant to this Chapter. 9.10.270 Fees Deemed Debt to City. The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to the City of San Luis Obispo that is recoverable in any court of competent jurisdiction. 9.10.280 Violation and Penalties. A. Misdemeanor. Each violation of the provisions of this chapter shall be a misdemeanor and is punishable as provided in Section 1.12.030 of this code; provided, that where the City attorney Packet Page 87 Item #8 Ordinance No. 1673 (2019 Series) Page 17 O 1673 determines that such action would be in the interest of justice, he/she may specify in the accusatory pleading that the offense shall be an infraction. Any violation of the provisions of this chapter by any person is also subject to administrative fines as provided in Chapter 1.24 of this code. B. Infraction Violation. Where the City attorney determines that, in the interest of justice, a violation of this chapter is an infraction, such infraction is punishable by a fine not exceeding one hundred dollars for a first violation, a fine not exceeding two hundred dollars for a second violation of the same provision within one year, and a fine not exceeding five hundred dollars for each additional infraction violation of the same provision within one year. C. The fine amounts set forth above may be modified, from time to time, by City Council resolution. In no event shall such fine amounts exceed the amounts authorized by state law. D. If the City of San Luis Obispo finds, based on substantial record evidence, that any person has engaged in Commercial Cannabis Activity in violation of Chapter 9.10, the City shall fine that person as follows. Each day that person without a Commercial Cannabis Operator Permit offers cannabis or cannabis products for sale or exchange shall constitute a separate violation and assessed a fine in accordance with Sections 1.12.080 and 1.24.070(A) of this code. E. Each person committing, causing, or maintaining a violation of this chapter or failing to comply with the requirements set forth herein shall be deemed guilty of a separate offense for each and every day during any portion of which any violation of any provision of this chapter is committed, continued, maintained, or permitted by such person and shall be punishable accordingly. F. The violation of any provision of this chapter shall be and is hereby declared to be a public nuisance and contrary to the public interest. Any public nuisance under this chapter may, at the City’s discretion, be abated by the City by civil process by means of a restraining order, preliminary or permanent injunction or in any manner provided by law for the abatement of such nuisance. The City shall also be entitled to recover its full reasonable costs of abatement. The prevailing party in any proceeding associated with the abatement of a public nuisance shall be entitled to recovery of attorneys’ fees incurred in any such proceeding if the City has elected at the initiation of that individual action or proceeding to seek recovery of its own attorneys’ fees. G. In lieu of issuing a criminal citation, the City may issue an administrative citation to any person responsible for committing, causing or maintaining a violation of this chapter. Nothing in this section shall preclude the City from also issuing a citation upon the occurrence of the same offense on a separate day. H. The remedies set forth in this chapter are cumulative and in addition to any and all other l remedies available at law or equity, whether set forth elsewhere in the San Luis Obispo Municipal Code, or in state or federal laws, regulations, or case law. In addition to other remedies provided by this chapter or by other law, any violation of this chapter may be remedied by a civil action brought by the City attorney, including but not limited to Packet Page 88 Item #8 Ordinance No. 1673 (2019 Series) Page 18 O 1673 administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. 9.10.290 Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this chapter or the rules adopted hereby. The City Council of the City of San Luis Obispo hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. Packet Page 89 Item #8 Page intentionally left blank. Packet Page 90 Item #8 Department Name: Administration Cost Center: 1005 For Agenda of: January 14, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Chris Read, Sustainability Manger SUBJECT: AUTHORIZE AIR POLLUTION CONTROL DISTRICT GRANT APPLICATION TO SUPPORT ELECTRIC VEHICLE CHARGERS AT CITY HALL RECOMMENDATION 1. Authorize the City Manager, or his designee, to execute and file grant applications with the Air Pollution Control District (APCD) for electric vehicle charging and to execute any related grant applications, certifications, assurances, forms, agreements, and associated documents on behalf of the City; and 2. Authorize the City Manager to approve a Budget Amendment Request to increase the budget reflecting these grant funds, if awarded. DISCUSSION Background In June of 2019, the City Council adopted the 2019-2021 Financial Plan, which included Climate Action as a Major City Goal. Work Task #27 of the Climate Action Major City Goal is to install electric vehicle chargers at City Hall. Staff has been aware of an APCD grant that would be available in late 2020 to supplement City funding to cover 65 percent of project costs. Staff recently learned of availability of carryover funding from a previous grant cycle and the City has been invited to submit an application to the APCD now. The 2019-21 Financial Plan includes $50,000 for the project. Due to unforeseen onsite electrical limitations at City Hall identified by Public Works Engineering staff, the standard approach to an electric vehicle charger that is connected to the electrical grid is likely not feasible without substantial additional electrical upgrades and costs. Staff is considering a stand-alone (grid independent) solar and battery powered electric vehicle charger as an alternative. An initial quote for the stand-alone electric vehicle charger is $82,000. The recommended action in this Council Agenda Report is to submit the grant application for $53,300, which would offset 65 percent of the project costs and leave additional budget funds available for contingencies. Should the grant application not be successful, staff would work to identify lower-cost alternatives. Previous Council Direction City Council approved the electric vehicle charger project when it approved the 2019-21 Financial Plan in June of 2019. Packet Page 91 Item #9 Policy Context The electric vehicle charger grant application implements the 2019-21 Climate Action Major City Goal. Public Engagement The City’s adopted 2019-21 Major City Goal for Climate Action reflects the substantial public engagement process that was undertaken as part of the 2019-21 Financial Plan including online surveys, public meetings, and the Goal Setting workshop. CONCURRENCE Public Works staff concurs with submitting the electric vehicle charger grant application in support of the City’s Climate Action Major City Goal. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action of submitting grant applications and proposals does not constitute a “Project” under CEQA Guidelines Sec. 15378. If successful, any City projects using grant funding would undergo all applicable reviews under CEQA and would be conducted in a manner consistent with adopted City plans. FISCAL IMPACT Budgeted: Yes* Budget Year: 2019-20 and 2020-21 Funding Identified: Yes *Budget was identified in the FY 2019-21 Financial Plan; however, it now appears that this funding may be insufficient to complete the project as currently scoped. Fiscal Analysis: Funding Sources 2019-21 FY Cost Annualized On-going Cost Total Project Cost General Fund (19-20) $5,000 $5,000 General Fund (20-21) $23,700 $21,300 $45,000 Federal $0 $0 $0 Fees $0 $0 $0 Other: APCD Grant $53,300 $0 $53,300 Total $82,000 $21,300 $103,300 The 2019-21 Financial Plan includes $5,000 in FY 19-20 and $45,000 in FY 20-21 for the installation of electric vehicle chargers at City Hall. An initial cost estimate for capital costs of the project is $82,000 (subject to change pending the procurement process). Assuming the City would be awarded the full 65 percent cost offset from APCD, this would lead to a $53,300 grant Packet Page 92 Item #9 award, $28,700 in General Fund funding for the charger, and $21,300 of City appropriated funding for contingencies. If the APCD grant is not successful, staff will need to identify another grant or alternative funding mechanism as the existing budget does not appear sufficient to implement the project as currently scoped ALTERNATIVES 1. The City Council could request additional information or analysis from staff. 2. The City Council could deny the request to submit a grant application. Packet Page 93 Item #9 Page intentionally left blank. Packet Page 94 Item #9 Department Name: Public Works Cost Center: 5101 For Agenda of: January 14, 2020 Placement: Public Hearing Estimated Time: 30 Minutes FROM: Shelly Stanwyck, Assistant City Manager, Community Services Prepared By: Alexander Fuchs, Parking Services Supervisor SUBJECT: EXPANSION OF THE EXISTING MONTEREY HEIGHTS RESIDENTIAL PARKING PERMIT DISTRICT AND THE ESTABLISHMENT OF THE DANA STREET RESIDENTIAL PARKING PERMIT DISTRICT RECOMMENDATION 1. Adopt a Resolution (Attachment B) expanding the existing Monterey Heights Residential Parking Permit District to include residential properties located on 10-400 blocks of Buena Vista Avenue. 2. Adopt a Resolution (Attachment D) establishing the Dana Street Residential Parking Permit District for the 400-500 blocks of Dana Street. Report in Brief This report recommends approval of two recently processed residential permit district requests (Monterey Heights expansion area, Dana Street) that have satisfied the criteria for the establishment of a residential permit district pursuant to the City’s Municipal Code. DISCUSSION Background Requests to establish or expand residential parking permit districts are processed in accordance with the provisions of Municipal Code Section 10.36.170 (Designation of residential parking permit areas). Staff completed the process for considering two residential permit zones; an expansion of an existing area (Monterey Heights) and establishing a new district (Dana Street). Recommendations are now being made to implement these two districts in accordance with provisions of Municipal Code Section 10.36.170. Monterey Heights Residential Parking Permit District – Expansion Request & Evaluation In 2017, the City processed a request to expand the existing Monterey Heights Residential Parking Permit District (RPPD). The primary complaints leading to the request were the parking impacts generated by persons not residing in the area; primarily Cal Poly students. At the time, and after a full process of implementing the revised district boundaries, the request did not receive enough support from neighborhood residents through the formal survey process to move Packet Page 95 Item #10 forward and be presented to Council for consideration. There is generally a one year “cooling off” period after processing a RPPD request before a neighborhood can again try to form or expand a district. In Spring of 2019, staff received another request from residents living in the same area to pursue an expansion of the existing Monterey Heights RPPD. Residents of the area cited the same parking impacts as the reason for their request to expand. Attachment A contains a detailed description of steps taken by staff to process the Monterey Heights RPPD expansion request. Below is a summary of some of the major steps taken to process the request: 1. Staff again identified the potentially affected households based on feedback from residents living in the area. 2. In September 2019, staff developed informal survey materials and provided them to the requestor, along with an address list of households in the proposed expansion area, for distribution. Informal survey results demonstrated enough support to move forward with a public meeting and a formal survey of the affected households. 3. In October 2019, staff held a public meeting to discuss the proposed expansio n of the Monterey Heights RPPD. Staff then mailed formal surveys to all households within the proposed expansion area. Formal survey results demonstrated enough support (i.e. =>60%) for the request to be presented to Council for consideration. 4. In early December 2019, staff conducted car counts to determine average on -street parking occupancy in the proposed expansion area. Of the 43 households surveyed, 29 completed and returned formal survey ballots to the Parking Services office by the deadline; 22 (76%) of which were in favor of expanding the district. All streets except for the upper area of Buena Vista exceeded the 60% support requirement of the proposed district. The recommended boundary of the district has been revised to exclude this area from the RPPD. This section of Buena Vista already has existing curb parking restrictions due to the narrowness of the street and fire access requirements. Packet Page 96 Item #10 Figure 1 – Expanded Monterey Heights RPPD Monterey Heights Expansion – Recommendation Pursuant to the requirements of Section 10.36.170, the neighbors of the proposed area have indicated successful support for the formation of the expanded district. Staff recommends that Council adopt a resolution (Attachment B) approving the expansion of the existing Monterey Heights RPPD to include residential properties located on 10-400 blocks of Buena Vista Avenue. Dana Street Residential Parking Permit District – Establishment Request & Evaluation In Fall of 2017, residents of the Dana Street area contacted the City ’s Parking Services Division requesting to pursue a residential parking permit district for the 400-500 blocks of Dana Street. The request was primarily centered on daily parking impacts generated by persons not residing in the area, and most particularly employees in the downtown area. Dana Street has long been a location known for free parking with no parking restrictions during the daytime hours and people have gravitated to the street as an alternative to parking in private or public parking lots. Similar to the Mission Orchard Parking District Area (which formed in May 2014) Dana Street residents are requesting the formation of a RPPD to reduce these daily impacts. Attachment C contains a detailed description of steps taken by staff to process the RPPD request for Dana Street. Below is a summary of the major steps taken to process the request: 1. In May 2018, staff met with residents of the Dana Street to discuss their request. Staff met again with residents in July 2019 to reconfirm their interest in pursuing a district, discuss proposed boundaries, and enforcement hours. Packet Page 97 Item #10 2. In September 2019, staff developed informal survey materials and provided them to the requestor, along with an address list of households in the proposed expansion area, for distribution. Informal survey results demonstrated enough support to move forward with a public meeting and a formal survey of the affected households. 3. In October 2019, staff held a public meeting to discuss the establishment of the proposed district. Staff then mailed formal surveys to all households within the proposed expansion area. Formal survey results (November) demonstrated enough support for the request to be presented to Council for consideration. 4. In December 2019, staff conducted car counts to determine average on-street parking occupancy in the proposed district area. Of the 41 households surveyed, 20 completed and returned formal survey ballots to the Parking Services office by the above stated deadline. 18 (90%) of the completed and returned ballots voted in favor of establishing a RPPD. The permit restrictions would be in place from 8:00 AM to 2:00 AM, daily. The City’s municipal code, that governs RPPDs, require that at least 60% of the completed and returned formal surveys must be in favor of the establishment of a district for the request to be presented to Council for consideration. Figure 2 – Proposed Dana Street RPPD Dana Street is not a typical residential only district. Due to its proximity to downtown there exists a mixture of commercial/office, multi-family and single-family residential lots along the street. The City’s RPPD program limits the district participants to single family residential and multi-family properties of less than five units (each must have an independent address). Boundaries of the district were proposed that made the area contiguous but preserved parking areas at the ends were multi-family and commercial lots exist. Because of the unique nature of Dana Street and the historic use by others, staff is recommending that there be a two-hour parking limit overlay established for the street during the permit restriction hours. This would allow some parking during the daytime hours for visitors of Packet Page 98 Item #10 the downtown area to use the street for parking but promote “turnover” of the curb space which is not currently happening. Area residents supported this concept as a way to better utilize the parking areas and keep the street narrowed during the day when occasional cars drive down the street. The two-hour restriction will be enforced primarily by Parking Services throughout the day. Additionally, the two-hour restriction does not need to be established by resolution of the Council as the municipal code establishes the placement of such restrictions at the discretion of the Public Works Director (10.14.010). Dana Street District – Recommendation Staff recommends that Council adopt a resolution (Attachment D) approving the establishment of the Dana Street RPPD to include qualifying residential properties located on the 400-500 blocks of Dana Street. Policy Context Requests to establish or expand residential parking permit districts are processed in accordance with the provisions of Municipal Code Section 10.36.170 which states that the Council, should, by resolution, designate an area of the City as a residential parking permit area if the Council finds that: 1. The area is predominantly residential; 2. The streets in the area are congested with vehicles parked by persons not residing in the area and the designation is supported by a majority of the affected households as indicated by a city survey of the affected households in which a sixty percent majority of participating households is required; or 3. Limiting the parking of vehicles along the streets in the area to vehicles registered or controlled and exclusively used by persons residing in the area is necessary in order to preserve the character of the existing neighborhood as defined in resident petition and approved by a sixty percent majority of households in the area. In making the determination, Council shall consider the negative effect of vehicles parked by persons not residing in the area on: 1. Environmental characteristics such as ambient noise levels and air pollution levels; 2. Pedestrian and vehicular traffic safety in the area; and 3. The burden on persons residing in the area gaining access to their residences. Public Engagement Public outreach for both district requests was conducted in accordance with the district request process including informal surveying of potentially affected households, public meeting, and formal surveying of potentially affected households. See attachments A and C for more detailed information about the steps taken during district request process. CONCURRENCE The proposed enforcement hours of both district requests fall partially within the responsibility of the Police Department’s Student Neighborhood Assistance Program (SNAP). SNAP, at this time, can take on the nighttime enforcement of the proposed districts with existing resources; Packet Page 99 Item #10 however, any future nighttime parking enforcement may require additional staff in order to enforce. 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: 2019-20 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost Parking Fund $12,500 $400 $12,900 Total $12,500 $400 $12,900 The fiscal impact for the proposed districts includes the purchasing of hangtag permits for all residents within the proposed boundaries as well as materials and labor to install signs required to enforce the districts. The combined total amount for both districts is estimated to cost approximately $12,900 including a $400 on-going cost for annual hangtag permits. As part of the approval of the FY 2019-21 Financial Plan Council approved CIP # 1000054 – Managed Parking Expansion Project to fund parking changes such as the expansion of the Alta Vista District and formation of Dana Street. The $12,900 to fund implementation of these recommendations will come from the project account which is currently budgeted at $25,000 for FY2019-20. A portion of the annual costs (as well as future operating costs) would be offset by the $15 per permit annual fee associated with residential parking permits for a total potential revenue of $2,400 annually. The Parking Fund will also receive citation revenue from enforcement of the parking districts; however, it is difficult to calculate the anticipated potential citation revenue. ALTERNATIVES 1. Do not enact one or both proposed residential parking permit districts at this time. Staff does not recommend this alternative because the formal surveys for both requests resulted in sufficient support of 60% or more of the affected households per the governing section of the City’s Municipal Code. 2. Council may modify proposed district hours or boundaries if needed. Staff recommends caution in making significant modifications to the proposed RPPD recommendations without additional outreach of potentially affected residents. If Council determines changes to the proposed RPPD’s are warranted, staff would recommend referring final approval until Packet Page 100 Item #10 additional outreach of these areas is completed. Attachments: a - Monterey Heights Survey Results and On-street Occupancy b - Resolution to Expand the Existing Monterey Heights District c - Dana Street Survey Results and On-street Occupancy d - Resolution to Establish the Dana Street District Packet Page 101 Item #10 Monterey Heights Expansion Informal Survey Informal survey materials including a survey ballot, map of the survey area, and a copy of the Residential Parking Permit District Information Guide brochure was provided to each of the 42 households within the proposed expansion boundaries. Informal survey ballots needed to be completed and returned to the Parking Services office no later than September 26, 2019 to be included in the count. Of the 42 households surveyed, 27 completed and returned informal survey ballots to the Parking Services office by the above stated deadline. Table 1 below shows the breakdown of the completed and returned informal survey ballots by block. Table 1 – Informal Survey Results by Block Block In Favor Not in Favor Total % In Favor 10 Buena Vista Ave. 4 1 5 80% 100 Buena Vista Ave. 3 1 4 75% 200 Buena Vista Ave. (incl. Paso Robles Dr. & San Miguel Ave. Addresses) 8 0 8 100% 300-400 Buena Vista Ave. 10 0 10 100% Total 25 2 27 N/A Based on the above informal survey results, all blocks demonstrated at least 50% of responding households were in favor of expanding the existing district. Two addresses located off of Paso Robles Drive were included with the 200 block of Buena Vista Avenue since there is no on-street parking on Paso Robles Drive itself. Public Meeting On Monday, October 21, 2019, staff held a public meeting in the Terrace Room at the San Luis Obispo United Methodist Church located on the 1500 block of Fredericks Street in San Luis Obispo. Letter invites were mailed to all occupants and property owners within a 300-foot radius of the proposed expansion boundaries. The purpose of the meeting was to provide information to residents and answer questions regarding the Residential Parking Permit District process, the request to expand the existing Monterey Heights Residential Parking Permit District, and any general parking -related questions. 20 residents and/or property owners attended and signed-in at the public meeting. Formal Survey Results On Monday, October 28, 2019, staff mailed each of the 43 households (one household was added to the formal mailing after discussion with a resident at the public meeting) within the proposed expansion boundaries an introduction letter, a formal survey ballot, and a return envelope. Formal survey ballots needed to be completed and returned to the Parking Services office no later than November 22, 2019 to be included in the count. Packet Page 102 Item #10 Of the 43 households surveyed, 29 completed and returned formal survey ballots to the Parking Services office by the above stated deadline. Table 2 below shows the breakdown of the completed and returned informal survey ballots by block. Table 2 – Formal Survey Results by Block Block In Favor Not in Favor Total % In Favor 10 Buena Vista Ave. 3 3 6 50% 100 Buena Vista Ave. (incl. address added after public meeting) 5 0 5 100% 200 Buena Vista Ave. (incl. Paso Robles Dr. & San Miguel Ave. Addresses) 3 1 4 75% 300-400 Buena Vista Ave. 11 3 14 79% Total 22 7 29 N/A The City’s municipal code that governs Residential Parking Permit Districts require that at least 60% of the completed and returned formal surveys must be in favor of the expansion for the request to be presented to Council for consideration. There was only one block, the 10 block of Buena Vista Avenue consisting of addresses 1-88, that did not receive sufficient in-favor support. The remaining blocks of Buena Vista Avenue did receive sufficient support and are part of the recommended district expansion. Proposed District Hours The proposed enforcement hours of 2 AM to 10 PM Monday through Friday are the same enforcement hours as the existing Monterey Heights Residential Parking Permit District. Several residents, at the public meeting and through the formal survey process, indicated support for no district enforcement during the summertime period (June 15th through September 15th). This is similar to two blocks of the adjacent Alta Vista Residential Parking Permit District. Enforcement of the district will be a joint effort between Public Works (Parking Enforcement Officers) and Police Department (SNAP) employees. SNAP, at this time, can take on the nighttime enforcement of the expansion area with existing resources; however, any future nighttime parking enforcement may require additional staff in order to enforce. On-Street Parking Occupancy Staff conducted car counts between December 3, 2019 and December 14, 2019 to determine the percentage of occupied on-street spaces at different times of the day and different days of the week. The data was collected on Tuesday, Thursday, and Saturdays between 9-10 AM, 12-2 PM, and 4- 5 PM. The first week of car counts was conducted when Cal Poly was in session, the second week of car counts was conducted Cal Poly’s Final Examination Period for the Fall term. Table 3 below shows the on-street parking occupancy per block in the potential affected area. The on-street occupancy was calculated using an average of 20 linear curb feet for each parking space. Packet Page 103 Item #10 Table 3 – On-Street Parking Occupancy by Block Monterey Heights Expansion Occupancy Summary Date Time 300-400 Buena Vista 200 Buena Vista 100 Buena Vista 10 Buena Vista Average 12/3 9:40 AM 91% 67% 100% 58% 79% Cal Poly in Session 12/3 1:30 PM 69% 47% 70% 8% 48% 12/3 4:15 PM 66% 33% 70% 0% 42% 12/5 9:10 AM 89% 40% 80% 8% 54% 12/5 12:49 PM 77% 60% 30% 8% 44% 12/5 4:20 PM 63% 53% 50% 8% 44% 12/7 9:37 AM 74% 27% 60% 33% 49% Cal Poly Final Examination Period 12/7 1:28 PM 51% 0% 20% 25% 24% 12/7 4:20 PM 49% 0% 10% 17% 19% 12/10 1:15 PM 31% 0% 20% 25% 19% 12/10 4:26 PM 69% 33% 50% 50% 50% 12/12 9:40 AM 49% 53% 30% 17% 37% 12/12 1:45 PM 37% 27% 90% 17% 43% 12/12 4:25 PM 66% 27% 90% 17% 50% 12/14 9:25 AM 40% 33% 50% 17% 35% End of Fall Term 12/14 1:30 PM 40% 20% 40% 17% 29% 12/14 4:10 PM 40% 20% 40% 25% 31% Legend 50% or Less Occupied 51% to 64% 65% to 74% 75% to 84% 85% or More Occupied 0% On-street parking blocked due to construction Packet Page 104 Item #10 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, MODIFYING THE RESIDENTIAL PARKING PERMIT DISTRICT FOR THE MONTEREY HEIGHTS AREA OF THE CITY, ESTABLISHING DAYS AND HOURS OF OPERATION OF SAID DISTRICT AND TIME OF RENEWAL FOR A PARKING PERMIT WHEREAS, the City of San Luis Obispo received a request for the expansion of the Monterey Heights Residential Parking Permit District; and WHEREAS, the request was processed pursuant to Municipal Code Section 10.36.170 et seq. which requires a formal survey in which at least 60% of the households participating in the survey supported the district expansion before the request can be presented to Council of the City of San Luis Obispo for consideration; and WHEREAS, the Council of the City of San Luis Obispo has determined that the proposed residential parking permit district, area shown in Exhibit A, to include addresses 70 to 495 on Buena Vista Avenue and 2102 Loomis Street and 177 to 198 Paso Robles Drive and 295 Santa Maria Avenue and 305 to 308 San Miguel Avenue and 2106 Santa Ynez Avenue, have petitioned to be included in the Monterey Heights Residential Parking Permit District; and WHEREAS, the Council of the City of San Luis Obispo has held a public hearing to consider changes to the Monterey Heights Residential Parking Permit District and has determined that the expansion represents the desire of a majority of the households in the area and that a residential parking permit district, which limits parking in the area to bona fide residents, is necessary to preserve the character and quality of life of the neighborhood for the residents of the district. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Pursuant to Section 10.36.170 et seq. of the San Luis Obispo Municipal Code, the residential parking permit district boundaries and hours are hereby established as shown in Exhibit A. SECTION 2. No vehicles other than emergency vehicles, vehicles with commercial plates that is under the control of a person who does not reside in the area that is providing service for hire to property located in the designated residential parking permit district area, or vehicles having a residential parking permit clearly displayed between the windshield and the rearview mirror shall park on any street within the area from 2:00 a.m. to 10:00 p.m. Monday through Friday. SECTION 3. The Public Works Director shall be directed to post the district with signs that clearly state these restrictions. Packet Page 105 Item #10 Resolution No. _____ (2020Series) Page 2 R ______ SECTION 4. The Director of Public Works shall issue residential parking permits on demand as permitted in Section 10.36.220 of the Municipal Code. Permits shall be issued for a year effective September 15th of each year. SECTION 5. The expansion of the existing district does not constitute a “Project” under CEQA Guidelines Sec. 15378. Upon motion of _______________________, seconded by _______________________, 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, this ______ day of ______________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 106 Item #10 Resolution No. _____ (2020Series) Page 3 R ______ Exhibit A Packet Page 107 Item #10 Dana Street District Informal Survey Informal survey materials including a survey ballot, map of the survey area, and a copy of the Residential Parking Permit District Information Guide brochure was provided to each of the 41 qualified households within the proposed district boundaries. Informal survey ballots needed to be completed and returned to the Parking Services office no later than September 26, 2019 to be included in the count. Of the 41 households surveyed, 16 completed and returned informal survey ballots to the Parking Services office by the above stated deadline. 15 (94%) of the completed and returned ballots voted In-Favor of establishing a Residential Parking Permit District. The City requires that at least 50% of the completed and returned informal ballots be In-Favor of establishing a Residential Parking Permit District for the request to move to the public meeting and formal survey portion of the process. Public Meeting On Wednesday, October 23, 2019, staff held a public meeting in the Nybak Wing of the San Luis Obispo Museum of Art located on the 1000 block of Broad Street in San Luis Obispo. Letter invites were mailed to all occupants and property owners within a 300-foot radius of the proposed district boundaries. The purpose of the meeting was to provide information to residents and answer questions regarding the Residential Parking Permit District process, the request to establish a Residential Parking Permit District on Dana Street, and any general parking-related questions. 18 residents and/or property owners attended and signed-in at the public meeting. Formal Survey Results On Monday, October 28, 2019, staff mailed each of the 42 qualified households within the proposed district boundaries an introduction letter, a formal survey ballot, and a return envelope. On Tuesday, November 5, 2019, correction notices were mailed to the same households due to incorrect information listed on the first letter sent. Due to the correction notice being mailed out a week later, the date for completion and return of the Formal survey ballots was extended from Friday, November 22, 2019 to Wednesday, November 27, 2019. Any forms turned in after that date, whether they were complete or not, were not counted in the final tally. Of the 41 households surveyed, 20 completed and returned formal survey ballots to the Parking Services office by the above stated deadline. 18 (90%) of the completed and returned ballots voted In-Favor of establishing a Residential Parking Permit District. The City’s Municipal Code that governs Residential Parking Permit Districts require that at least 60% of the completed and returned formal surveys must be in favor of the establishment of a district for the request to be presented to Council for consideration. Proposed District Hours The proposed enforcement hours of 8 AM to 2 AM daily, are what the residents that met with City staff feel would best address the parking impacts in their neighborhood. Residents were provided Packet Page 108 Item #10 an opportunity to propose alternate enforcement hours on the Formal Survey ballot, but no alternatives were submitted. Enforcement of the district will be a joint effort between Public Works (Parking Enforcement Officers) and Police Department (SNAP) employees. SNAP, at this time, can take on the nighttime enforcement of the proposed district with existing resources; however, any future nighttime parking enforcement may require additional staff in order to enforce. Timed Parking Overlay This district proposal also carries with it a request by the residents to establish a two-hour timed parking overlay that will allow guests and visitors of the downtown area an opportunity to park with in the proposed district boundaries without being immediately subject to citation for not displaying a valid residential parking permit. Staff is supportive of the timed parking overlay and has included a discussion of it in the report. Table 3 – On-Street Parking Occupancy by Block Dana Street Occupancy Summary Date Time 400-500 Buena Vista 12/3 9:20 AM 105% 12/3 1:15 PM 98% 12/3 4:05 PM 78% 12/5 9:00 AM 88% 12/5 12:35 PM 103% 12/5 4:10 PM 81% 12/7 9:30 AM 55% 12/7 1:40 PM 72% 12/7 4:35 PM 57% 12/10 1:00 PM 84% 12/10 4:15 PM 67% 12/12 9:30 AM 69% 12/12 1:30 PM 109% 12/12 4:15 PM 103% 12/14 9:10 AM 71% 12/14 1:45 PM 102% 12/14 4:00 PM 90% Legend 50% or Less Occupied 51% to 64% 65% to 74% 75% to 84% 85% or More Occupied Packet Page 109 Item #10 On-Street Parking Occupancy Staff conducted car counts between December 3, 2019 and December 14, 2019 to determine the percentage of occupied on-street spaces at different times of the day and different days of the week. The data was collected on Tuesday, Thursday, and Saturdays between 9-10 AM, 12-2 PM, and 4- 5 PM. Table 3 below shows the on-street parking occupancy per block in the potential affected area. Five of the count times show an occupancy percentage above 100%; this is due to the use of 20 linear curb feet for each parking space. Smaller vehicles do often take up less than 20 feet of curb space, so it is possible for the counts to show on-street spaces at or above 100% occupancy depending on the type and orientation of vehicles parked on-street. Packet Page 110 Item #10 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ESTABISHING THE RESIDENTIAL PARKING PERMIT DISTRICT FOR THE DANA STREET AREA OF THE CITY, ESTABLISHING DAYS AND HOURS OF OPERATION OF SAID DISTRICT, AND TIME OF RENEWAL FOR A PARKING PERMIT WHEREAS, the City of San Luis Obispo received a request an establishment of the Dana Street Residential Parking Permit District; and WHEREAS, the request was processed pursuant to Municipal Code Section 10.36.170 et seq. which requires a formal survey in which at least 60% of the households participating in the survey supported the district establishment before the request can be presented to Council of the City of San Luis Obispo for consideration; and WHEREAS, the Council of the City of San Luis Obispo has determined that the proposed residential parking permit district, area shown in Exhibit A, to include addresses 430 to 581 Dana Street, have petitioned to establish the Dana Street Residential Parking Permit District; and WHEREAS, the Council of the City of San Luis Obispo has held a public hearing to consider the Dana Street Residential Parking Permit District and has determined that the establishment represents the desire of a majority of the households in the area and that a residential parking permit district, which limits parking in the area to bona fide residents, is necessary to preserve the character and quality of life of the neighborhood for the residents of the district. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Pursuant to Section 10.36.170 et seq. of the San Luis Obispo Municipal Code, the residential parking permit district boundaries and hours are hereby established as shown in Exhibit A. SECTION 2. No vehicles other than emergency vehicles, vehicles with commercial plates that is under the control of a person who does not reside in the area that is providing service for hire to property located in the designated residential parking permit district area, or vehicles having a residential parking permit clearly displayed between the windshield and the rearview mirror shall park on any street within the area from 8:00 a.m. to 2:00 a.m., Daily. SECTION 3. The Public Works Director shall be directed to post the district with signs that clearly state these restrictions. SECTION 4. The Public Works Director shall issue residential parking permits on demand as permitted in Section 10.36.220 of the Municipal Code. Permits shall be issued for a year effective September 15th of each year. Packet Page 111 Item #10 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 5. The establishment of the district does not constitute a “Project” under CEQA Guidelines Sec. 15378. Upon motion of _______________________, seconded by _______________________, 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, this ______ day of ______________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 112 Item #10 Resolution No. _____ (2020 Series) Page 3 R ______ Exhibit A Packet Page 113 Item #10 Page intentionally left blank. Packet Page 114 Item #10 Department Name: Finance Cost Center: 2003 For Agenda of: January 14, 2020 Placement: Public Hearing Estimated Time: 30 Minutes FROM: Brigitte Elke, Finance Director Prepared By: Natalie Harnett, Interim Budget Analyst SUBJECT: INTRODUCE AN ORDINANCE AMENDING DESIGNATED PORTIONS OF THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE SECTION 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE CHAPTER 3.04 – TRANSIENT OCCUPANCY TAX. RECOMMENDATION Introduce an ordinance amending Municipal Code Chapter 3.04 Transient Occupancy Tax (TOT) to revise action to collect applicable tax assessments and to clarify the process to appeal. DISCUSSION Background Over the past years, the lodging industry has changed dramatically with homestays entering the market and changing the landscape of short-term rentals and the applicable tax due to the City. A fair number of these rentals are booked through third-party services and are in compliance with the City’s tax law. The City utilizes a third-party compliance company, Host Compliance, that estimates at least 64 homestays currently operating in the City without the required permits and have not been remitting TOT. Host Compliance estimates that over $441,862 in TOT debt are owed to the City considering back-taxes due since the homestays began renting. In June 2018, the City and Airbnb (the largest third-party homestay online portal) reached an agreement that provides that Airbnb will automatically collect the 10% TOT, 1% Tourism Marketing District assessment and the 2% Business Improvement District assessment. These required taxes and assessments will be automatically added to the amounts collected from renters when a reservation is made on Airbnb for a stay in the City. However, Airbnb remits the TOT as a “total amount” and does not disclose specific lodging or property information about what properties it is collected from. The lack of information on specific properties makes it difficult to ascertain which specific properties are remitting TOT and which are not. The City therefore served its first batch of Violation Notice letters to homestay operators in June 2018. The enforcement letters were sent in batches because many operators contact the City after receiving the correspondence, requesting clarification and additional information. This approach Packet Page 115 Item #11 allows for better management of the triggered workload. To date, the City has sent 66 letters. The total TOT revenue for back-taxes owed generated from these enforcements is approximately $75,507. Though there has been some compliance, staff recommends the City consider stronger actions to collect from those operators who do not respond to permitting and tax collection efforts and thus ensure compliance with adopted city policies and that there is a fair playing field so to speak relative to brick and mortar lodging opportunities. Actions to Collect As a charter city, the City has the plenary power to legislate on matters of municipal affairs. This power includes the ability to impose, administer and collect taxes. Further, Government Code section 43000 and 43001 provide that a city may make an ordinance allowing for the assessment, levy and collection of city taxes. Therefore, staff is recommending that, if the amount of tax due is not paid, the tax administrator may submit a request to the City Council to approve a resolution certifying the amounts of any liens being sought against an operator. After receiving the requisite City Council approval, the tax administrator may take the necessary steps to enforce the lien, which includes but is not limited to, requesting the O ffice of the San Luis Obispo County Recorder to record a Notice of Lien. This process coincides and mirrors the adopted current policy and practice by which the City collects unpaid fines and other debts related to code enforcement, fire safety, and solid waste violations. Appeal The ordinance currently allows customers to appeal to the Council by filing a notice of appeal with the City Clerk’s office within fifteen days of the Tax Administrator’s decision. Clarification on the contents to appeal and the hearing procedures were added as ordinance revisions. Given the importance of the tax and its revenue stream to the City’s General Fund, staff does not recommend changing this practice. As it is also a matter of creating fair competition amongst the lodging industry by enforcing the same dues on all short-term rental operators, an appeal before Council will allow the public to better understand the City’s efforts that are affecting neighborhoods. If Council would like to place appeals in before the City’s administrative body, staff can return with any recommended actions and changes to city practices and policies. Policy Context The ordinance to collect TOT was implemented in 1955. The tax was assessed at 10% of room rent and is applicable for all stays under 30 days. Chapter 3.04 of the City’s Municipal Code is the governing document for TOT. Public Engagement Consistent with the City’s Municipal code, a legal ad was published in the New Times 10 days prior to the Council meeting. Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. Tourism Business Improvement District Board (TBID) The City’s advisory body for tourism is staffed by members of the local lodging industry. The enforcement of TOT from homestays has been a frequent topic as places equality amongst all lodging establishments. The proposed changes were presented to the TBID board on November 13, 2019 and the board is in support of the changes to the TOT chapter as recommended. Packet Page 116 Item #11 CONCURRENCE The Finance Department communicates directly with Code Enforcement to identify non- compliant operators and customers with delinquent taxes. The Finance Department, Community Development Department, and the City Attorney’s office have been working closely to accomplish a process to enforce homestay compliance. 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: 2019-20 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $16,333 State Federal Fees Other: Total $16,333 The City has a current contract with the company assisting with the enforcement of homestay operators. The contractual amount is $16,333 and has been budgeted for in 2019-20 in the Community Development operating budget. The proposed revisions are anticipated to have a positive fiscal impact because they sh ould clarify and streamline the collection process and result in increased revenue from collection of operators who have not remitted TOT thus far. It will also help enforce homestay compliance with the City’s permitting requirement. However, there is a cost associated with the cases heard by the City Council which would be absorbed by current appropriated budget. The City intends to work with operators and rectify appeals at the Tax Administrator level before they proceed to Council. If undue burden is p ut on the City Council from TOT appeals, further changes to the ordinance will be made to change the appeal process. Because homestay enforcement is such a new process for the City, staff believes it would be most effective to leave the appeals process as currently written until it can gauge the response from operators. Packet Page 117 Item #11 ALTERNATIVES 1. Do not adopt and implement the recommended Code revisions. This is not recommended because it will limit finance tax collection effectiveness. 2. Provide changes to the proposed ordinance and introduce the ordinance for a first reading. Attachments: a - Revised TOT Ordinance Packet Page 118 Item #11 O ______ ORDINANCE NO. _____ (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTIONS 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE TITLE 3.04 – TRANSIENT OCCUPANCY TAX WHEREAS, the City of San Luis Obispo adopted its transient occupancy tax in 1955; and WHEREAS, since then the lodging industry has changed significantly through the availability of homestay rentals; and WHEREAS, the City’s ordinance governing the lodging tax requires amendment to address some of the unique circumstances surrounding homestays; and WHEREAS, the City of San Luis Obispo amends designated portions of its Municipal Code Title 3.04 – Transient Occupancy Tax. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein as the findings of the Council by this reference. SECTION 2. Section 3.04.020 of the San Luis Obispo Municipal Code, entitled Definitions, is hereby amended to read as follows: 3.04.020 Definitions Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter: A. “Effective Date of Tax Administrator’s Decision” The date specified in the tax administrator’s decision as the effective date. Generally, the effective date will be the date the tax administrator’s decision is issued. B. “Hotel” means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging ouse, rooming house, apartment house, a homestay, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. C. “Occupancy” means the use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. Packet Page 119 Item #11 Ordinance No. _____ (2020 Series) Page 2 O ______ D. “Operator” means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both. E. “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. F. “Rent” means the consideration charged, whether or not received, for the occupancy of a space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. G. “Tax administrator” means the city tax collector or city finance director, or his or her designee, for the City of San Luis Obispo. H. “Transient” means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered. (Prior code § 2551) SECTION 3. Section 3.04.080 of the San Luis Obispo Municipal Code, entitled Delinquencies and penalties, is hereby amended to read as follows: 3.04.080 Delinquencies and penalties A. Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty the amount of which will be set by the tax administrator or by resolution of the city council. SECTION 4. Section 3.04.090 of the San Luis Obispo Municipal Code, entitled Failure to collect and report tax—Determination of tax by tax administrator, is hereby amended to read as follows: 3.04.090 Failure to collect and report tax—Determination of tax by tax administrator If any operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, Packet Page 120 Item #11 Ordinance No. _____ (2020 Series) Page 3 O ______ the tax administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the tax administrator shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the tax administrator shall give a notice of the amount so assessed by serving it personally or by certified U.S. mail, postage prepaid, addressed to the operator so assessed at his or her last known place of address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the tax administrator for a hearing on the amount assessed. The operator’s application for a hearing must be delivered to the City of San Luis Obispo’s Finance Department or postmarked within ten days after the serving or mailing of such notice. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax administrator shall become final and conclusive and immediately due and payable. If such application is made, the tax administrator shall give not less than five days’ written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the tax administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in Section 3.04.100. (Prior code § 2558) SECTION 5. Section 3.04.100 of the San Luis Obispo Municipal Code, entitled Appeal, is hereby amended to read as follows: 3.04.100 Appeal 1. Appeal. Any operator aggrieved by any decision of the tax administrator with respect to the amount of such tax, interest and penalties, if any, may appeal. To appeal the tax administrator’s determination, the appellant shall comply with the appeals process as set forth in Chapter 1.20. to the council by filing a notice of appeal with the city clerk within fifteen days of the serving or mailing of the determination of tax due. The council shall fix a time and place for hearing such appeal, and the city clerk shall give notice in writing to such operator at his or her last known place of address. 2. Contents of Appeal. The written appeal shall state the following information: a. A caption setting forth the names, addresses, phone numbers and other contact information of the appellant(s) and the operator, if the appellant and operator are not the same, participating in the appeal. b. A brief statement setting forth the interest of the appellant(s), either as the recipient of the notice of tax administrator’s determination, or the legal interest of the appellant(s) in the hotel or property that is the subject of the notice of tax administrator’s determination. Packet Page 121 Item #11 Ordinance No. _____ (2020 Series) Page 4 O ______ c. A brief statement describing: i. The specific notice of tax administrator’s determination being appealed, by the day of the notice of tax administrator’s determination, address of the hotel or property; and ii. Whether all or only specified tax, interest, penalties are being appealed; and iii. Why the tax administrator’s determination should be revoked, modified or otherwise set aside. d. A statement that all of the matters alleged in the appeal are true, followed by the signature(s) of each appellant(s), and one official mailing address for the appellant(s) to receive further notices from City relating to the appeal. 3. Hearing Procedures for Appeal. a. Records for Appeal. The tax administrator, or his or her designee, shall ensure that the tax administrator’s determination and any supporting documentation are delivered to the applicable city clerk in sufficient time prior to the appeal hearing. b. Failure to Appear. The failure of the appellant(s) to appear at the hearing, unless the hearing was continued per subsection g of this section, or unless the appellant(s) has submitted written evidence per subsection f of this section, shall constitute an abandonment of the appeal. 4. Findings of the Council. The findings of the council shall by final and conclusive and shall be served upon the appellant in the manner prescribed in Section 3.04.090 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. SECTION 6. Section 3.04.130 of the San Luis Obispo Municipal Code, entitled Actions to Collect, is hereby amended to read as follows: 3.04.130 Actions to Collect 1. Actions. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operato r to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount. (Prior code § 2562) 2. Liens. To recover any delinquent tax as a lien on real property, the following conditions must be met: Packet Page 122 Item #11 Ordinance No. _____ (2020 Series) Page 5 O ______ a. The tax administrator must submit to and receive approval from the city council for a resolution certifying the amounts of the liens sought to be collected from the operator; and b. The total amount of the delinquent tax against the operator must be delinquent for sixty days or more. 3. Lien Collections. The tax administrator is authorized to take any steps necessary to enforce collection of the lien, including but not limited to request the county recorder to record a notice of any lien certified by resolution of the city council. 4. Notice of Lien Collection Procedures. All notice of the amount so assessed by the tax administrator or city council shall contain a notice that unpaid taxes, interest and penalties are subject to the lien collection procedures of this chapter. In addition, the tax administrator shall by first class mail send notice to each operator and property owner at least ten days before the city council considers the resolution to certify the amounts of the liens and special assessments stating the date, time, and location of the meeting. The lien shall be imposed on the date the tax administrator’s determination or city council’s decision is issued to the responsible person and shall become effective upon the recording of a notice of lien by the county recorder. 5. Contesting Certification of a Lien. A person may contest the amount or the validity of any lien for unpaid taxes, interest and penalties at the public hearing when the city council considers the resolution to certify the liens. Such contests shall be limited to the issue of the amount or validity of the lien and may not consider whether the delinquency occurred. Pursuit of such a contest by a person is necessary to exhaust the administrative remedies concerning a legal challenge to the validity of any such lien. SECTION 7. 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. SECTION 8. Environmental Review. The proposed ordinance amendment is exempt from environmental review requirements of the California Environmental Quality Act (CEQA) because the adoption of this Ordinance is not a project as defined in CEQA Guidelines Section 15378 because it can be seen with certainty that it will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.. SECTION 9. Ordinance Number 1234 (1993 Series) is hereby amended and superseded to the extent inconsistent herewith. SECTION 10. 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 Packet Page 123 Item #11 Ordinance No. _____ (2020 Series) Page 6 O ______ New Times, 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, this ______ day of ______________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 124 Item #11 Department Name: Administration Cost Center: 1005 For Agenda of: January 14, 2020 Placement: Public Hearing Estimated Time: 45 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Robert Hill, Sustainability & Natural Resources Official Dylan Stafforini, Sustainability & Natural Resources Intern SUBJECT: MIOSSI OPEN SPACE CONSERVATION PLAN RECOMMENDATION Adopt a resolution (Attachment A) to: 1. Approve the Miossi Open Space Conservation Plan (Attachment B); and 2. Adopt a Negative Declaration of environmental impact for the Project. DISCUSSION Background The City of San Luis Obispo purchased the 266-acre Miossi Open Space in November 2018. It is the latest addition to the City’s inventory of properties protected through the City’s long- standing Greenbelt Protection Program that has resulted in the permanent conservation of over 7,500 acres of land. The Miossi Open Space Conservation Plan (“the Conservation Plan”) is intended to guide the conservation and stewardship of this property long into the future as part of a larger mosaic of open lands owned by the City, Cal Poly and the United States Forest Service. Overview of Miossi Open Space Miossi Open Space is teeming with biodiverse environments nestled between US Highway 101 freeway and Poly Canyon within the lands of California Polytechnic State University, San Luis Obispo. This open space is located in a secluded setting at the base of Cuesta Ridge at the northeastern boundary of the City of San Luis Obispo. The upper extents of the property feature panoramic views of the City to the south and the Pacific Ocean to the west, as well as the surrounding region. Miossi Open Space also hosts exceptional plant and wildlife diversity, an interesting cultural resource legacy, and is well-suited to offer pleasant hiking, biking, and passive recreational opportunities. Miossi Open Space is proximate to the City’s existing Reservoir Canyon Natural Reserve and Stenner Springs Natural Reserve, as well as Poly Canyon, Los Padres National Forest, and the neighboring Santa Lucia Wilderness. Miossi Open Space represents a key piece of a long-standing conservation vision to establish permanent land protection within the Cuesta Canyon and Cuesta Grade areas of the San Luis Obispo Greenbelt due to outstanding natural resource values including the upper watershed of San Luis Obispo Creek, artesian springs, and important wildlife habitat. The Los Padres Packet Page 125 Item #12 National Forest is a key wildlife corridor with evidence of critical migratory patterns that take place in the Cuesta Grade area. The acquisition of the property will also allow for the potential of creating a trail linking the new Miossi Open Space between Poly Canyon and Los Padres National Forest with outstanding views of the City of San Luis Obispo. Plan Overview The Conservation Plan provides a framework for management approaches to natural resources protection, scenic resources, cultural resources, erosion and drainage, fire protection, trails and passive recreation: 1. Natural Resources Protection. The Conservation Plan places priority on maintaining the natural ecosystem, while allowing passive public recreation as appropriate and compatible. The Miossi Open Space provides habitat for seven special status wildlife species and seven special status plant species, identified by the firm Terra Verde Environmental (2019; see Council Reading File) and City staff, that shall be protected and monitored over the long- term. Protective status is also given to all native plant communities and habitats that persist or are establishing within the open space area for the functions and values that they provide. 2. Scenic Resources. The upper ridgeline and easterly side of Miossi Open Space represents a scenic and prominent backdrop along the US Highway 101 corridor, as well as being more distantly visible on the north side of the San Luis Obispo Greenbelt from various vantage points within the City. 3. Cultural Resources. A Phase I Cultural Resources study was undertaken by the firm Applied EarthWorks (2019; see Council Reading File) that included records research, field surveys and documentation, and outreach to historically and culturally affiliated Native American tribal representatives. Applied EarthWorks identified several historic-era resources and recorded the historic dam and associated infrastructure that was part of the initial water system supplying water to the City of San Luis Obispo. Tribal representatives requested a site visit and cultural sensitivity training for staff prior to the start of any construction activities to facilitate balanced public access that respects natural and cultural resources . Improved trailhead signs and a new kiosk will provide the opportunity to present an educational panel to the public that broadly describes the cultural and historic nature of the property. 4. Erosion and Drainage. A Custom Soil Resource Report was prepared for Miossi Open Space using the United States Department of Agriculture’s Natural Resources Conservation Service (NRCS) website application. The report rev eals that Miossi Open Space is comprised mostly of heavy clay soils known as the Gazos-Lodo clay loams (unit 144) and Los Osos-Lodo complex (unit 167). This soil is excessively well drained and characterized as having severe erosion potential, especially given the presence of steep slopes. Accordingly, ongoing erosion control and water management strategies are necessarily a part of the Conservation Plan. 5. Fire Protection. Miossi Open Space is entirely surrounded by open land uses comprised of the public lands and other larger ranch holdings. The Cuesta Ridge landscape, in general, Packet Page 126 Item #12 represents a significant wildland fire hazard and there has been significant recorded fire history in this system, as well as recent smaller events. A key component of the Conservation Plan is to address fire hazard that could result in unacceptable safety risk, property loss, and impacts to the environment. This is due to prevailing and seasonal winds; presence of annual grassland, chaparral, oak woodland, and other vegetation; and adjacency to US 101 and the Los Padres National Forest landscape. Because the property is outside of the City, Cal Fire will be the primary fire response agency and the City has historically contributed the equivalent portion of property tax to cover fire protection services. 6. Trails and Passive Recreation. An existing system of old “jeep trails” provide passive recreational access through the Miossi Open Space. In the lower extents of the property located “below the tracks” the existing roads are also of utility for maintenance and site stewardship activities, Ranger Service patrol, and emergency purposes. A culvert undercrossing provides trail access between the lower and upper portions of the property suitable for hiking and biking, although it is not large enough to accommodate a vehicle. New multi-use trails (hiking and biking) are proposed as part of the Conservation Plan in three locations – at the easterly portion of the site proximate to the Old Stagecoach Road trailhead access; on the westerly portion of the site leading towards and providing a possible trail connection to Poly Canyon, as well as a brief “hiking only” spur to a summit feature within the property; and, a loop system within the upper portion of the property. Proposed new trails are based on field reconnaissance, as well as slope, elevation, and aerial photography analysis using Geographic Information Systems (GIS) software, in order to approximately map out trail alignments that can be sustainably constructed with moderate slopes and avoidance of sensitive site features. The new trails are also planned to feature attractive, scenic, or interesting site features, as well as both on- and off-site views. Policy Context The conservation plan process formally designates Miossi Open Space as a City Open Space property. The acquisition, management, and long-term stewardship of the property will be carried out in accordance with the City’s Open Space Regulations (1996); the Conservation Guidelines for Open Space Lands of the City of San Luis Obispo (2002); the City of San Luis Obispo 2015 Open Space Maintenance Plan; and, the Conservation and Open Space Element of the City’s General Plan (2006). Public Engagement A public meeting was held at the Ludwick Community Center on the evening December 11, 2019 that consisted of a presentation and overview of the Conservation Plan followed by questions and answers and open dialogue. The meeting was attended by approximately twenty (20) members of the general public, neighboring property owners, as well as representatives of several community partners, and numerous comments were received and recorded. Written comments received prior to the publication of this Council Agenda Report are provided as Attachment c. The Miossi Open Space Conservation Plan and companion Initial Study/Negative Declaration were noticed as a news item on the City’s website and posted to the City’s webpage where environmental documents are found. All members of the public that have requested email Packet Page 127 Item #12 notifications of pending topics related to the environment were also contacted. A legal notification ran in the New Times on December 12, 2019. Postings were placed at the property itself at the Old Stagecoach Road entrance, as well as in the information kiosk in front of City Hall. In addition, outreach was undertaken to historically and culturally affiliated Native American tribal representatives. Next Steps If Council approves the Conservation Plan and Initial Study/Negative Declaration, the following steps are recommended to prepare the property for opening to the public: 1. Provide tribal representative site visits; arrange and attend cultural resources sensitivity training with Ranger Service and Natural Resources staff, as well as volunteer trail crew members. 2. Install “wildlife friendly” perimeter fence along the southerly property boundary. 3. Install new signage at trailheads and along trails. 4. Install entry gate, kiosk, parking and fencing, and trailhead amenities (trash can and mutt mitts). 5. Maintain and repair erosion and drainage areas along existing access routes. 6. Install new trail bypass around erosive landslip area in the upper area of the property. 7. Begin ongoing invasive weed species treatment. It is anticipated that these steps can be completed by spring of 2020 at which time a grand opening and dedication will be scheduled. CONCURRENCES The City’s Ranger Service has reviewed the plan and has provided concurrence. The Initial Study/Negative Declaration was reviewed by the City’s Environmental Coordinator in the Community Development Department, whom concurs with the findings of the environmental document. ENVIRONMENTAL REVIEW The Initial Study that was prepared for the Project by Rincon Consultants (see Council Reading File) identifies several areas where “Less Than Significant” impacts have the potential to occur. These are: Aesthetics; Air Quality; Biological Resources; Cultural Resources; Energy; Geology and Soils; Greenhouse Gas Emissions; Hazards and Hazardous Materials; Hydrology and Water Quality; Noise; Public Services; Recreation; Transportation; Tribal Cultural Resources; and Wildfire. No potentially significant or significant impacts were identified. 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 if there is no substantial evidence that the project or any of its aspects may cause a significant effect on the environment .” A 30-day public comment period was opened on December 11, 2019. A Notice of Completion and Notice of Intent to Adopt were filed with the County-Clerk Recorder and the State Clearing House. Packet Page 128 Item #12 FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20; Ongoing Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $48,520 $4,852 $53,372 State Federal Fees Other: Total $48,520 $4,852 $53,572 The City purchased Miossi Open Space for $1.3 million using existing open space and local revenue measure funds, together with a grant and private foundation gift. In consideration of this substantial investment and responsibility, ongoing maintenance and stewardship activities are essential. Current fiscal year costs are based on purchase and installation of standard specification open space amenities, as identified in the City of San Luis Obispo 2015 Open Space Maintenance Plan (p. 12), including fencing, gates, kiosks, etc. Annualized costs are estimated based on a ten-year replacement cycle of open space amenities. Day-to-day management and occasional costs that may arise from time-to-time that are necessary to safely manage and steward Miossi Open Space will continue to be supported through the operating budgets within the Natural Resources Program and Ranger Service. The budget needed for the work outlined in this report was appropriated with the 2019 -21 Financial Plan and 2019-20 budget allocation and will also be supported by existing Open Space Maintenance Capital Improvement Plan (CIP) funds. City staff has developed an ongoing CIP program for major maintenance activities and improvements that is considered as part of the City’s Financial Plan. City staff will also pursue grants and support volunteers to augment funding for this plan’s identified projects. Overall, the fiscal impact of the Conservation Plan and its implementation is considered manageable given existing funding and opportunities to phase projects and leverage modest investments of City funds. ALTERNATIVES 1. Deny the Miossi Open Space Conservation Plan and not adopt the Negative Declaration, although this is not recommended given that these documents appear consistent with existing City policies. 2. Modify the Miossi Open Space Conservation Plan and/or the Negative Declaration based on Council direction. Staff will provide recommendations on any changes to the resolution and/or plan based on specific policy direction. Packet Page 129 Item #12 3. Continue the item with specific direction for more information or if more discussion time is required before taking action. Attachments: a - Resolution b - Miossi Open Space Conservation Plan - Public Review Draft c - Public Comments 12-11-19 to 1-7-20 d - Council Reading File - Intial Study-Negative Declaration + Technical Studies Packet Page 130 Item #12 RESOLUTION NO. ________ (2020 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA APPROVING THE MIOSSI OPEN SPACE CONSERVATION PLAN AND ADOPTION OF A NEGATIVE DECLARATION WHEREAS, the City of San Luis Obispo has adopted policies for protection, management, and public use of open space lands and cultural resources acquired by the City; and WHEREAS, the City of San Luis Obispo manages fourteen open space areas totaling over 4,000 acres, including the approximately 266-acre Miossi Open Space, and over 3,500 acres protected by open space easements or conservation easements; and WHEREAS, Miossi Open Space provides habitat to seven (7) sensitive wildlife species and seven (7) rare plant species, serves as a critical wildlife migration corridor, and provides important upper watershed functions and values along San Luis Obispo Creek, all of which, collectively, are of great important to the citizens of the City of San Luis Obispo as expressed in the Conservation and Open Space Element of the City’s General Plan; and WHEREAS, the general public, stakeholders, neighbors, and historically and culturally affiliated Native American tribes have commented upon the Miossi Open Space Conservation Plan either in person at the December 11, 2019 public hearing, pursuant to electronic and legal notifications, posting at the property and at City Hall, or through specific outreach efforts; staff has carefully considered and incorporated those comments where appropriate. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Miossi Open Space Conservation Plan. The City Council hereby adopts the Miossi Open Space Conservation Plan, an official copy of which shall be kept on record with the City Clerk, based on the following findings: a. The Miossi Open Space Conservation Plan is consistent with General Plan goals and policies relating to the oversight and management of City open space areas, specifically Conservation and Open Space Element Policy 8.5.6 that calls for the development of conservation or master plans for open space properties to protect and enhance them in a way that best benefits the community as a whole; and b. Implementation of the Miossi Open Space Conservation Plan will provide protection of identified natural resources and appropriate public access to the site while maintaining a majority of the site for habitat protection and enhancement. SECTION 2. Environmental Review. The City Council hereby adopts the Negative Declaration for the project, an official copy of which shall be kept on record with the City Clerk, finding that it adequately identifies all of the potential impacts of the project and that those potential impacts identified in the areas of Aesthetics; Air Quality; Biological Resources; Cultural Resources; Energy; Geology and Soils; Greenhouse Gas Emissions; Hazards and Hazardous Materials; Hydrology and Water Quality; Noise; Public Services; Recreation; Transportation; Tribal Cultural Resources; and Wildfire, are de minimis and less than significant. Packet Page 131 Item #12 Resolution No. _____ (2020 Series) Page 2 R ______ These findings, together with incorporation by reference into the Project Description that the property will be managed in accordance with policies found in the City’s Conservation and Open Space Element of its General Plan (2006); the Conservation Guidelines for Management of Open Space Lands of the City of San Luis Obispo (2002); the City of San Luis Obispo 2015 Open Space Maintenance Plan; and, the City’s Open Space Regulations (Municipal Code 12.22), the issuance of a Negative Declaration is appropriate, per CEQA Guidelines 15063. Upon motion of _______________________, seconded by _______________________, 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, this ______ day of ______________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 132 Item #12 MIOSSI OPEN SPACE CONSERVATION PLAN Public Hearing Review Draft City of San Luis Obispo City Administration Office of Sustainability Natural Resources Protection Program January 2019 Packet Page 133 Item #12 Miossi Open Space Open Space Conservation Plan 1 Miossi Open Space Conservation Plan Public Hearing Review Draft City Council: Heidi Harmon, Mayor Aaron Gomez, Vice Mayor Carlyn Christianson Andy Pease Erica Stewart City Manager: Derek Johnson Prepared by: Robert Hill Sustainability & Natural Resources Official (805) 781-7211 Dylan Stafforini Sustainability & Natural Resources Intern III (805) 781-7119 City of San Luis Obispo City Administration Office of Sustainability Natural Resources Protection Program 990 Palm Street San Luis Obispo, CA 93401 Technical Assistance: Terra Verde Environmental Consulting Applied Earthworks Rincon Consultants Packet Page 134 Item #12 Miossi Open Space Open Space Conservation Plan 2 Table of Contents PAGE List of Figures & Tables 3 Executive Summary 4 1. Property History 9 2. Inventory 9 2.1 Physical Inventory 9 2.2 Legal Agreements 11 2.3 Soils 11 2.4 Species Inventory 11 2.5 Vegetative Communities 15 2.6 Rare Plants Inventory 19 2.7 Invasive Weed Species 23 2.8 Carbon Farming Pilot Program Site Potential 23 3. Goals and Policies 24 4. Conservation Plan 26 4.1 Naming 26 4.2 Land Use Designations 27 4.3 Photo-Monitoring Points 29 4.4 Needs Analysis 29 5. Wildfire Preparedness Plan 29 6. Implementation 30 7. Fiscal Statement 31 8. Updates and Amendment 31 Appendix A. Photo Monitoring Points B. Soils Map for Miossi Open Space C. Results of a Botanical Inventory and Wildlife Surveys Completed at the Miossi Open Space Property, City of San Luis Obispo, California (Terra Verde Environmental, August 2019) D. Cultural Resource Study for the Miossi Open Space, San Luis Obispo, California (Applied EarthWorks, Inc., September 2019) History Center Packet Page 135 Item #12 Miossi Open Space Open Space Conservation Plan 3 List of Figures & Tables PAGE FIGURES Figure 1: Panoramic View of Miossi Open Space and Poly Canyon 4 Figure 2: Miossi Open Space Property Boundary Map 6 Figure 3: Miossi Open Space Topographic Map 7 Figure 4: Miossi Open Space and the San Luis Obispo Greenbelt 8 Figure 5: Culvert Undercrossing 9 Figure 6: Site Map of AE-4087-01H and Associated Infrastructure 10 Figure 7: Representative transition zone between grassland & chaparral vegetation communities 17 Figure 8: Vegetation Communities within Miossi Open Space 18 Figure 9: Miossi Open Space – Invasive Weed Species Map 23 Figure 10: Miossi Open Space Management Areas and Trail Map 28 Figure 11: Panoramic Photo from “Above the Tracks” on Miossi Open Space 30 TABLES Table 1: Notable Wildlife Species Observations at Miossi Open Space 11 Table 2: Notable Botanical Species Observations at Miossi Open Space 19 Table 3: Photo Monitoring Points 32 Maps and Photos by City of San Luis Obispo staff, Terra Verde Environmental, Applied EarthWorks, or open source. Packet Page 136 Item #12 Miossi Open Space Open Space Conservation Plan 4 Executive Summary The Miossi Open Space Conservation Plan (“the Conservation Plan”) is intended to guide the conservation and stewardship of this property long into the future as part of a larger mosaic of open lands owned by the City, Cal Poly and the United States Forest Service. This process also formally designates Miossi Open Space as a City Open Space property in accordance with the City’s Open Space Regulations (1996), the Conservation Guidelines for Open Space Lands of the City of San Luis Obispo (2002), and the Conservation and Open Space Element of the City’s General Plan (2006). Miossi Open Space is teeming with biodiverse environments nestled between US Highway 101 freeway and Poly Canyon within the lands of California Polytechnic State University, San Luis Obispo. This open space is located in a secluded setting at the base of Cuesta Ridge at the northeastern boundary of the City of San Luis Obispo. The upper extents of the property feature panoramic views of the City to the south and the Pacific Ocean to the west, as well as the surrounding region. Miossi Open Space also hosts exceptional plant and wildlife diversity, an interesting cultural resource legacy, and is well-suited to offer pleasant hiking, biking, and passive recreational opportunities. Miossi Open Space is proximate to the City’s existing Reservoir Canyon Natural Reserve and Stenner Springs Natural Reserve, as well as Poly Canyon, Los Padres National Forest, and the neighboring Santa Lucia Wilderness. This property represents a key piece of a long-standing conservation vision to establish permanent land protection within the Cuesta Canyon and Cuesta Grade areas of the San Luis Obispo Greenbelt due to outstanding natural resource values including the upper watershed of San Luis Obispo Creek, artesian springs, and important wildlife habitat. The acquisition of the property will also allow for the creation of a trail linking the new Miossi Open Space between Poly Canyon and Los Padres National Forest where outstanding views of the City of San Luis Obispo and the valley it rests in can be gained and enjoyed. Site Description Miossi Open Space offers high value for natural resource conservation, as well for passive recreational uses on this 266-acre site. The site has an existing trail network that is also connected to a wider dirt road. Perpendicular to one of the trails is a railroad crossing with an underlying culvert previously used for the movement of grazing animals and serves as a crucial corridor for species cited in the Terra Verde wildlife survey report (2019). At the base of the site near US Highway 101 is an approximately ½ mile portion of the Old Stagecoach Road, which runs between the Highway and San Luis Obispo Creek. Miossi Open Space ranges from a base elevation of 640 feet to its highest point along the upper ridge at 1,486 feet. Miossi Open Space offers a full host of both natural landscape features and vegetative assemblages across a site of 266 acres. The site is comprised of a diverse assemblage of soil and rock. In the early part of the 20th century the Southern Pacific Railroad was constructed, ostensibly bifurcating the site but for a culvert undercrossing. The site has historically been grazed by livestock. Miossi Open Space features oak woodlands, riparian areas, springs, and steep chaparral hillsides in compliment to the grassland pastures and rock outcrop features of the site. Figure 1: Panoramic Photo of Miossi Open Space and Poly Canyon Packet Page 137 Item #12 Miossi Open Space Open Space Conservation Plan 5 Management Considerations The Miossi Open Space Conservation Plan provides a framework for a mix of management approaches to natural resources protection, scenic resources, cultural resources, erosion and drainage, fire protection, trails and passive recreation: • Natural Resources Protection. The Conservation Plan places priority on maintaining the natural ecosystem, while allowing passive public recreation as appropriate and compatible. The Miossi Open Space provides habitat for seven special status wildlife species and seven special status plant species, identified by the firm Terra Verde Environmental (2019) and City staff, that shall be protected and monitored over the long-term. Protective status is also given to all native plant communities and habitats that persist or are establishing within the open space area for the functions and values that they provide. • Scenic Resources. The upper ridgeline and easterly side of Miossi Open Space represents a scenic and prominent backdrop along US Highway 101 corridor, as well as being more distantly visible on the northeast side of the San Luis Obispo Greenbelt from various vantage points with the City. • Cultural Resources. A Phase I Cultural Resources studied was undertaken by the firm Applied EarthWorks (2019) that included records research, field surveys and documentation, and outreach to historically and culturally affiliated Native American tribal representatives. Applied EarthWorks identified several historic-era resources and recorded the historic dam and associated infrastructure that was part of the initial water system supplying water to the City of San Luis Obispo. Tribal representatives requested a site visit and cultural sensitivity training for staff prior to the start of any construction. Improved trailhead signs and a new kiosk will provide the opportunity to present an educational panel to the public that broadly details the cultural and historic nature of the property. • Erosion and Drainage. A Custom Soil Resource Report was prepared for Miossi Open Space using the United States Department of Agriculture’s Natural Resources Conservation Service (NRCS) website application. The report reveals that Miossi Open Space is comprised mostlyof heavy clay soils known as the Gazos-Lodo clay loams (unit 144) and Los Osos-Lodo complex (unit 167). This soil is excessively well drained and characterized as having severe erosion potential, especially given the presence of steep slopes. Accordingly, ongoing erosion control and water management strategies are necessarily a part of the Conservation Plan. • Fire Protection. Miossi Open Space is entirely surrounded by open land uses comprised of the public lands and other larger ranch holdings. The Cuesta Ridge landscape, in general, represents a significant wildland fire hazard and there has been significant recorded fire history in this system, as well as recent smaller events. A key component of the Conservation Plan is to address fire hazard that could result in unacceptable safety risk, property loss, and impacts to the environment. This is due to prevailing and seasonal winds; presence of annual grassland, chaparral, oak woodland, and other vegetation; and adjacency to US 101and the Los Padres National Forest landscape. • Trails and Passive Recreation. An existing system of old jeep trails provide passive recreational access through the Miossi Open Space. In the lower extents of the property located “below the tracks” the existing roads are also of utility for maintenance and site stewardship activities, Ranger Service patrol, and emergency purposes. A culvert undercrossing provides trail access between the lower and upper portions of the site, although it is not large enough to accommodate a vehicle. New multi-use trails (hiking and biking) are proposed as part of the Conservation Plan in three locations – at the easterly portion of the site proximate to the Old Stagecoach Road trailhead access; on the westerly portion of the site leading towards and providing a possible trail connection to Poly Canyon , as well as a brief “hiking only” spur to a summit feature within the property; and, a stacked loop system within the upper portion of the property. Proposed new trails are based on field reconnaissance, as well as slope, elevation, and aerial photography analysis using Geographic Information Systems (GIS) software, in order to approximately map out trail alignments that can be sustainably constructed with moderate slopes and avoidance of sensitive site features. The new trails are also planned so as to feature attractive, scenic, or interesting site features, as well as both on- and off-site views. Packet Page 138 Item #12 Miossi Open Space Open Space Conservation Plan 6 Figure 2: Miossi Open Space Property Boundary Site Map Packet Page 139 Item #12 Miossi Open Space Open Space Conservation Plan 7 Figure 3: Miossi Open Space Topographic Map Packet Page 140 Item #12 Miossi Open Space Open Space Conservation Plan 8 Figure 4: Miossi Open Space and the San Luis Obispo Greenbelt Packet Page 141 Item #12 Miossi Open Space Open Space Conservation Plan 9 1. Property History Archaeological evidence suggests that Native American use of this region of the Central Coast began as early as 8000 B.C., or 10,000 year before present, across six distinct periods of pre-history. Miossi Open Space lies within the ethnographic territory of the Chumash, in an area historically occupied by the Northern (Obispeño) Chumash (Applied EarthWorks, 2019). Although proximate to several of the Mexican land grants distributed in the early to mid-1840s, the immediate area later became part of the township and range system of United States Government land patents following California’s statehood. Miossi Open Space includes and is proximate to key transportation routes necessary to link San Luis Obispo to areas located to the north over Cuesta Grade, including the overland route known as Padre Road that originally served the Spanish explorers and connected the California missions, and was active in the 1860s and 1870s. Old Stagecoach Road began construction in 1876 and remained in service until 1915 when State Route 2 was constructed. State Route 2 remained active until US 101 was built in 1937. With the advent of the automobile and construction of US 101, several traveler-serving businesses sprang up at the foot of Cuesta Grande near Miossi Open Space. US 101 has since been widened and improved and now features a significant retaining wall at the eastern boundary of Miossi Open Space. The Southern Pacific Railroad came to San Luis Obispo in 1894 and played a pivotal role not only in the the development of San Luis Obispo, but also in transforming the landscape of the La Cuesta Ranch which serves as a key portion of the winding alignment that climbs over Cuesta Grade. A tunnel was first constructed within the alignment through La Cuesta Ranch, but was later abandoned to accommodate the construction of a wider turn radius coming around the prominent ridgeline within the property between 1956 and 1963. By the 1870’s, the San Luis Obispo County economy was dominated by dairies, primarily owned by Swiss and Swiss-Italian farmers including the Miossi family, whom at one time had three separate ranches in San Luis Obispo County, including other properties in Price Canyon and near present-day Montaña de Oro. The Miossi family acquired the subject La Cuesta Ranch property in 1917 from Frank Tate and they report past use of the property for ranching and livestock grazing purposes by the family and also under lease of the property to a tenant who grazed the property up until the time of sale to the City of San Luis Obispo in 2018. Aerial photographs from 1949, 1956 and 1963 clearly depict grazing and pasturing uses of the property, as well as a series of jeep trails within both the lower and upper extents of the property. 2. Inventory 2.1 Physical Inventory and Existing Improvements Miossi Open Space is comprised of San Luis Obispo County assessor parcels 070-271-033, 070-271-034, 073-341-040, and 073-341-041. It is 266 acres in size with an elevation ranging between 640 and 1480 feet above mean sea level (msl). The primary entry and public access to the site is via an existing dirt road behind a locked gate located off of Old Stagecoach Road leading up and into the property. There is also physical access from Cal Poly via US Forest Service lands, although this route is not accessible by vehicle. A culvert undercrossing beneath the railroad tracks that was reserved by the Miossi family in the 1960s connects the lower and upper areas of the property, although the alignment of the tracks and some side area is owned separately by the Union Pacific Railroad. Other than the existing dirt road network, there are only a few improvements including perimeter fencing, the gate at Old Stagecoach Road, a developed spring and spring box, and cattle watering troughs. Portions of Old Stagecoach Road and Route 2 traverse the property adjacent to San Luis Obispo Creek. Within San Luis Obispo Creek, remnants of the old dam site and associated conveyance infrastructure remain that originally were in service as part of the City of San Luis Obipso’s municipal water supply between 1911 and 1954. This location has been recorded as site AE-4087-01H and is recommended for further evaluation as an historic resource (Applied EarthWorks, 2019). Figure 5: Culvert undercrossing Packet Page 142 Item #12 Miossi Open Space Open Space Conservation Plan 10 Figure 6: Site Map of AE-4087-01H and associated infrastructure (Applied EarthWorks, 2019) Packet Page 143 Item #12 Miossi Open Space Open Space Conservation Plan 11 2.2 Legal Agreements There are numerous prior legal agreements for utility easements, right-of-way, reservations and long- term leases that affect the management and use of Miossi Open Space. Utility easements are for gas, electricity, and cellular communications. Right-of-way easements are for roads and railroad. Reservation and long-term leases include provision made with the Miossi family upon their sale of the property to the City of San Luis Obispo, including an easement for emergency and maintenance purposes consistent with historic levels of use, and easement reserving an existing cellular communications facility, and a reservation for a 10-year cattle grazing lease with option to renew. The City has secured an ALTA Owner’s Policy of Title Insurane from First American Title Insurance Company, policy no. 5601869. 2.3 Soils A Custom Soil Resource Report was prepared for Miossi Open Space using the United States Department of Agriculture’s Natural Resources Conservation Service (NRCS) website application. The report reveals that Miossi Open Space is comprised mostly of clay, but a variety of soils are present. This includes Gazos-Lodo clay loams (unit 144) and Los Osos-Lodo complex (unit 167), which are both clays. This soil is excessively well drained and characterized as having severe erosion potential, especially given the 30-50% (Gazos-Lodo Clay) and 30-75% (Los Osos-Lodo Complex) slopes. A soils map and complete listing of soils found within Miossi Open Space is included as Appendix B. 2.4 Wildlife Species Inventory A total of 79 animals were observed during surveys, photographed on remote cameras, and/or recorded by a bat detector at the Miossi Open Space property. (see Attachment B: Botanical and Wildlife Species Lists for Miossi Open Space) The 79 species detected comprise six taxonomic Classes: Amphibia (3), Arachnida (3), Aves (39), Insecta (17), Mammalia (14), and Reptilia (3). Seven special status wildlife species were detected on the property: golden eagle (Aquila chrysaetos), peregrine falcon (Falco peregrinus), white-tailed kite (Elanus leucurus), oak titmouse (Baeolophus inornatus), American badger (Taxidea taxus), California red-legged frog (Rana draytonii), and South-central California coast steelhead (Onchorynchus mykiss) (Table 1). California Native Species Field Survey Forms were completed and submitted to California Natural Diversity Database (CNDDB) for all new special- status species observations. Table 1: Special Status Wildlife Species Observed at Miossi Open Space American Badger (Taxidea taxus) Packet Page 144 Item #12 Miossi Open Space Open Space Conservation Plan 12 Golden eagle (Aquila chrysaetos) Oak titmouse (Baeolophus inornatus) Packet Page 145 Item #12 Miossi Open Space Open Space Conservation Plan 13 Peregrine falcon (Falco peregrinus) White-tailed kite (Elanus leucurus) Packet Page 146 Item #12 Miossi Open Space Open Space Conservation Plan 14 California red-legged frog (Rana draytonii) South-central California coast steelhead (Onchorynchus mykiss) Packet Page 147 Item #12 Miossi Open Space Open Space Conservation Plan 15 2.5 Vegetation Communities The condition of habitats on the Miossi Open Space property is relatively pristine, particularly along the southern and eastern edges of the property where minimal anthropogenic intrusion has occurred. Ruderal, invasive, and noxious species are most abundant along the corridors of the railroad and the main unpaved access road that bisects the property, as well as within the historically and currently grazed grasslands on the western side of the property. Eleven distinct, natural vegetation communities were mapped and described by Terra Verde Environmental (2019). In general, slope, aspect, elevation, and substrate dictate the distribution of communities, but there are broad ecotones where one community transitions widely into adjacent communities. Therefore, the communities mapped in Figure 8 should not be considered sharp transition lines between communities. Additionally, the community descriptions provided below represent typical conditions, but these habitat types are highly variable throughout the site. Vegetation community classifications are mapped and described to follow the second edition of A Manual of California Vegetation (MCV) classification system(Sawyer et al. 2009), as well as updates included in the MCV Online (CNPS 2019b). Annual Grasslands The grassland habitat documented on site is highly variable, but is generally dominated by non-native annual grass species, with variable cover of forbs and perennial grasses. Bromes (Bromus spp.) and oats (Avena spp.) are the dominant grasses in most areas, with false brome (Brachypodium distachyon) occurring as a co-dominant in many areas. Non-native and invasive forbs are generally concentrated along the main unpaved access road, remnant trails, and the railroad corridor. However, a significant population of woolly distaff thistle (Carthamus lanatus; Cal-IPC ‘High’) is present throughout the grasslands, with the highest density observed on the western side of the property. Several patches of purple needlegrass 11(Stipa pulchra) were observed and mapped in relatively discrete areas within annual grassland habitat (see Figure 9). The community composition documented for all grassland habitats on the property most closely corresponds to the Bromus (diandrus, hordeaceus)– Brachypodium distachyon Semi-Natural Herbaceous Alliance (annual brome grassland) and the Avena (barbata, fatua) Semi-natural Herbaceous Alliance (wild oats grasslands) in the MCV classification system. Buck Brush-Chamise Chaparral Large patches of chaparral dominated by buck brush (Ceanothus cuneatus) and chamise (Adenostoma fasciculatum) occur in several areas on the property, primarily on steep slopes. This community generally forms a closed-canopy of dense shrub cover ranging from four to seven feet high. Common associated species include leather oak (Quercus durata), Bishop manzanita, black sage (Salvia mellifera), and chaparral currant (Ribes malvaceum). Birch-leaf mountain-mahogany (Cercocarpus betuloides) is a significant component of this community in one patch near the southwestern corner of the property, occasionally forming the dominant shrub cover in discrete, highly localized patches. This community composition most closely corresponds to the Ceanothus cuneatus Shrubland Alliance (buck brush chaparral), and specifically the Ceanothus cuneatus-Adenostoma fasciculatum mixed association of this alliance in the MCV classification system. Chamise-Black Sage Chaparral Dense chaparral dominated by a distinct assemblage of chamise and black sage occurs in several areas of the property. This community forms diverse ecotones with the various scrub communities on site, and often includes California sagebrush (Artemisia californica), chaparral currant, bush monkeyflower (Diplacus aurantiacus), and western poison oak (Toxicodendron diversilobum) at variable cover. This community composition most closely corresponds to the Adenostoma fasciculatum- Salvia mellifera Shrubland Alliance (Chamise-black sage chaparral) in the MCV classification system. Packet Page 148 Item #12 Miossi Open Space Open Space Conservation Plan 16 Sagebrush, Black Sage, and Coyote Brush Scrub Various associations of scrub habitat occur on site, including areas that are dominated by California sagebrush, black sage, and coyote brush. Some stands support nearly monotypic cover of either black sage or coyote brush, and others form a more typical coastal scrub community with a mix of these dominant species, along with California coffeeberry (Frangula californica), western poison oak, bush monkeyflower, deerweed (Acmispon glaber), blue elderberry (Sambucus caerulea subsp. nigra), chaparral yucca (Hesperoyucca whipplei), and silver bush lupine (Lupinus albifrons var. albifrons). These communities form diverse 12 assemblages that often intergrade, as well as adjacent chaparral, oak woodland, and grassland habitats. The composition and cover of scrub habitats observed on site correspond with several alliances in the MCV classification system, including: Artemisia californica Shrubland Alliance (California sagebrush scrub), Artemisia californica-Salvia mellifera Shrubland Alliance (California sagebrush-black sage scrub), Salvia mellifera Shrubland Alliance (Black sage scrub), and Baccharis pilularis Shrubland Alliance (coyote brush scrub). Coast Live Oak Woodland Coast live oak (Quercus agrifolia) forms the dominant tree cover on east-facing slopes and in low-lying areas of the property, including along intermittent and ephemeral drainages that bisect the grasslands in the southern and western portions of the property. In upland areas, this community intergrades with adjacent chaparral and scrub communities, and supports a variable understory typically dominated by western poison oak, creeping snowberry (Symphoricarpos mollis), and western bracken fern (Pteridium aquilinum var. pubescens). In association with ephemeral drainages, California bay (Umbellularia californica) and western sycamore (Platanus racemosa) are common components of the tree canopy, with a variable understory that is similar in composition to that of upland woodland habitats on site. This community assemblage most closely corresponds to the Quercus agrifolia Woodland Alliance (coast live oak woodland) in the MCV classification system. Mixed Riparian Woodland The upper reaches of San Luis Obispo Creek border a portion of the eastern edge of the property. The riparian corridor associated with this creek is a diverse, mixed woodland dominated by coast live oak, California bay, and western sycamore, with arroyo willow (Salix lasiolepis) occurring commonly and a small population of big-leaf maple (Acer macrophyllum). The understory is a dense thicket of western poison oak, with California blackberry (Rubus ursinus), giant horsetail (Equisetum telmateia subsp. braunii), wood fern (Dryopteris arguta), and giant chain fern (Woodwardia fimbriata) occurring in localized patches. In addition, a robust population of French broom (Genista monspessulana) was documented along San Luis Obispo Creek and Old Stage Coach Road. This community assemblage most closely corresponds to the Quercus agrifolia-Platanus racemosa/Toxicodendron diversilobum Association of the coast live oak woodland alliance in the MCV classification system. Arroyo Willow Scrub Limited patches of willow scrub were observed in association with the upper reaches of ephemeral drainages and seeps on the property. Arroyo willow is the dominant species, with red willow (Salix laevigata), western sycamore, and cottonwood (Populus trichocarpa, P. fremontii) occurring infrequently. This community assemblage most closely cor responds to the Salix lasiolepis Shrubland Alliance (arroyo willow scrub) in the MCV classification system. Serpentine Outcrop A few expressions of serpentine outcrop were documented on site, which are characterized by exposed, ultramafic bedrock and low overall vegetative cover. Though limited in extent, serpentine outcrops form a highly specialized micro-habitat. On site, two of the special-status botanical species documented occur only in this micro-habitat: Brewer’s spineflower and mouse-gray dudleya. Shrub cover is mostly absent, with deerweed, golden yarrow (Eriophyllum confertiflorum), and narrowly leaved bedstraw (Galium angustifolium subsp. Packet Page 149 Item #12 Miossi Open Space Open Space Conservation Plan 17 angustifolium) occurring most commonly. A few unidentifiable individuals of mariposa lily (Calochortus sp.) were observed on the serpentine outcrops near the eastern edge of the site (see Figure 9). At the time of the surveys, these individuals appeared to have been recently browsed by deer or other herbivores and, therefore, the species at this location could not be confirmed; however, based on identifiable features, habitat, and range, it was most likely either club-haired mariposa lily (Calochortus clavatus var. clavatus, found elsewhere on site) or San Luis mariposa lily (C. obispoensis) – a CRPR 1B.2 species that was not observed anywhere else on the property. This habitat composition does not correspond to any of the community assemblages identified in MCV. Freshwater Seeps Several perennial or nearly perennial seeps were identified. These areas are generally surrounded by chaparral and scrub habitat but support a unique assemblage of plants due to the presence of perennial water. Dominant cover is mostly herbaceous, consisting of several species of rushes (Juncus spp.) and sedges (Carex spp.), along with sneezeweed (Helenium puberulum) and magnificent seep monkeyflower (Erythranthe grandis). This unique habitat is infrequent and corresponds to the Juncus (oxymeris, xiphioides) Provisional Herbaceous Alliance (iris-leaf rush seeps) and the Juncus patens Provisional Herbaceous Alliance (western rush marshes) in the MCV classification system. In addition to these natural community assemblages, limited anthropogenic and ruderal areas were identified and mapped, primarily along the railroad corridor, which supports some of the highest density of non-native, invasive, and/or noxious weeds on site. In particular, the railroad corridor, as well as historically disturbed habitats in close proximity to the rai lroad, support a high density of crimson fountain grass (Pennisetum setaceum). Figure 7: Representative transition zone between grassland and chaparral vegetation communities Packet Page 150 Item #12 Miossi Open Space Open Space Conservation Plan 18 Figure 8: Vegetation Communities within Miossi Open Space (Terra Verde Environmental, 2019) Packet Page 151 Item #12 Miossi Open Space Open Space Conservation Plan 19 2.6 Rare Plants Inventory Seven special-status botanical species were documented on site, of which six associated with serpentine and serpentine-derived soils. The one non-serpentine associated species, Santa Lucia manzanita (Arctostaphylos luciana), is also an edaphic specialist that typically occurs on shale soils. Santa Lucia manzanita and Bishop manzanita (Arctostaphylos obispoensis)were typically found in close proximity, reflecting the highly diverse, and mixed nature of substrates on the property. Table 2: Special Status Botanical Species Observed at Miossi Open Space Santa Lucia manzanita (Arctostaphylos luciana) Packet Page 152 Item #12 Miossi Open Space Open Space Conservation Plan 20 Bishop manzanita (Arctostaphylos obispoensis) Club-haired mariposa lily (Calochortus clavatus var. clavatus) Packet Page 153 Item #12 Miossi Open Space Open Space Conservation Plan 21 Brewer’s spineflower (Chorizanthe brewerii) Palmer’s spineflower (Chorizanthe palmeri) Packet Page 154 Item #12 Miossi Open Space Open Space Conservation Plan 22 Mouse-grey dudleya (Dudleya abramsii sbsp. murina) Small-leaved lomatium (Lomatium parvifolium) Packet Page 155 Item #12 Miossi Open Space Open Space Conservation Plan 23 2.7 Miossi Open Space Invasive Weed Species There are a number of invasive weeds on-site that pose an on-going threat to the diversity of this sites ecology. Terra Verde Environmental identified and mapped four species of invasive weeds: Distaff thistle, Purple star-thistle, Skeleton weed, and Yellow star-thistle. Highlighted in the map, below, there are three levels of density to distinguish the concentrations of Distaff thistle; low, medium, and high density. The invasive weeds on site are localized to the existing on-site roads and trails with the highest densities along the road. Nearly all of the high density observed areas are to the south of the railroad with isolated pockets to the north of the railroad tracks. These classifications serve as a guide for management of these weeds and require actions to be taken as part of the City’s efforts for conservation and habitat protection. Recommended management actions include selective herbicide application, livestock grazing, and tilling [in accordance with Integrated Pest Management (IPM)practice, as called for in the City’s Conservation and Open Space Element (2006)]. Figure 9: Miossi Open Space – Invasive Weed Species Map (Terra Verde Environmental, 2019) 2.8 Carbon Farming Pilot Program Site Potential The Miossi Open Space may be suitable in a limited capacity for future “carbon farming” efforts in furtherance of the City’s climate action goals and the objectice of achieving local carbon sequestration. When conducted, this entails application of a quarter-inch (1/4”) layer of compost to grassland/rangeland, which has the proven capability of sequestering carbon in the soil, as well as enhancing soil moisture content. An important decision-making and evaluative criteria for including this site will be understanding and monitoring any potential impacts to species diversity and native grasslands. In this regard, areas that are currently experiencing high densities of invasive Distaff thistle may be the most suitable in consideration of the dual goals of restoration and carbon sequestration. Packet Page 156 Item #12 Miossi Open Space Open Space Conservation Plan 24 3. Goals and Policies The Conservation and Open Space Element of the City’s General Plan and the document Conservation Guidelines for Open Space Lands of the City of San Luis Obispo (2002) describes management guidelines and policies for all City open space properties, and is incorporated by reference into the Conservation and Open Space Element of the City’s General Plan. The Miossi Open Space Conservation Plan has as its overarching goal to achieve sustainable conservation of habitat, while also allowing for passive recreational elements. The plan will accomplish this goal, and address the management issues described, above, through the following goals and policies. Goals The City will manage Miossi Open Space with the following goals: 3.1 Conserve, enhance, and restore natural plant and wildlife communities by protecting their habitats in order to maintain viable wildlife populations within balanced ecosystems. 3.2 Provide the public with an opportunity for greater understanding and appreciation for the cultural and historic resources values associated with Miossi Open Space. 3.3 Provide the public with a safe, accessible, and pleasing natural environment in which to pursue passive recreational activities, including hiking and biking, while maintaining the integrity of natural resources and minimizingthe impacts on the wildlife and habitats present in Miossi Open Space. 3.4 Actively address sedimentation sources and erosion both within and originating from Miossi Open Space. 3.5 Minimize the impacts of harmful activities, such as off-trail hiking and biking use or catastrophic wildfire, while maintaining natural drainage systems as a means of conveying stormwater into downstream urban areas. 3.6 Provide signage and interpretive features to enhance user safety, prevent unauthorized entrance at neighboring private property, and for educational purposes. 3.7 Maintain, protect, and improve aesthetic views as seen from various locations throughout the City of San Luis Obispo and along US 101. 3.8 Protect and consider officially designating, as appropriate, the important historic and cultural resources associated with Miossi Open Space. 3.9 Regularly monitor and patrol Miossi Open Space, establish Levels of Acceptable Change (LAC), and take action to correct areas or problems that exceed LAC. 3.11 Identify potetntial opportunities for conducting a carbon farming pilot program in a low-sensitivity and low-impact area of the site. 3.12 Identify and protect migratory corridors for wildlife species found on-site and that are moving through the site. 3.13 Explore natural solutions to invasive weed species and habitat restoration through the use of livestock grazing and browsing; minimize use of synthetic methods that often have detrimental impacts to the comprehensive ecological footprint in accordance with IPM practices. Packet Page 157 Item #12 Miossi Open Space Open Space Conservation Plan 25 Policies The City will manage Miossi Open Space in accordance with the City’s adopted Conservation Guidelines for Open Space Lands of the City of San Luis Obispo (2002), as well as the following policies that elaborate upon, or are in addition to, those found in the Conservation Guidelines: 3.14 Public Comment and Input This Conservation Plan seeks to accommodate community preferences while addressing the City’s goals in the Conservation and Open Space Element. A public meeting was held on December 11, 2019 in order to gather community input following staff’s presentation of the draft Conservation Plan. Both written comments and public testimony received during the review process will be considered in the final version of the document. 3.15 Natural Resources Protection The 266-acre Miossi Open Space property supports a diverse assemblage of species and habitats. Purchase of this parcel by the City for permanent conservation was a critical acquisition for the establishment of a continuous corridor of publicly accessible open space that connects the City of San Luis Obispo to the Los Padres National Forest on West Cuesta Ridge. To aid the City in preparing to open the property for public recreational use, the following protective management considerations were offered by Terra Verde Environmental and are incorporated herein: 1. Wherever possible, the City should avoid constructing new trails near or within mapped populations of special-status species, serpentine outcrops, needlegrass populations, or through oak woodland habitats. 2. Several remnant firebreaks, wildlife trails, and/or pedestrian trails were observed through areas of dense chaparral and scrub habitat. Where appropriate, incorporating these existing trails with new trails will minimize disturbance and impact. 3. Trails and roads at stream crossings should be constructed in a manner that avoids downstream sedimentation or discharges of soil or other materials. 4. Maintaining existing roads and fire breaks, including culvert repair or replacement, will reduce erosion and prevent sediment from entering nearby streams. 5. Vehicles, hand tools, and other equipment brought on site should be cleaned of all soil/mud and other debris to avoid the spread of non-native or invasive plants to the site. Further, all tools and equipment should be cleaned after use at the site to avoid the spread of invasive species from Miossi Open Space to other City-owned open space areas. 6. Install interpretive trail signs to inform the public of the sensitivity of resources on the property and important ways in which those resources can be protected (e.g., stay on trail, pack-in/pack-out trash, don’t pick wildflowers). 7. Invasive species management efforts should be implemented under the guidance of a licensed herbicide applicator, particularly for the control of woolly distaff thistle and French broom on site. 8. Ensure that all fencing on the property allows for safe passage of wildlife. 9. To avoid disturbances to nocturnal wildlife, limit site access to the hours between dawn and dusk [or in accordance with San Luis Obispo Municipal Code 12.22]. Packet Page 158 Item #12 Miossi Open Space Open Space Conservation Plan 26 10. If trash receptacles are installed, ensure they are wildlife-proof and are emptied frequently enough to prevent overflow. 11. Require that dog owners bag and remove their dog’s feces from the site to prevent the spread of disease to wildlife populations [in accordance with San Luis Obispo Municipal Code 12.22]. Implementing these recommendations on the Miossi Open Space will support passive recreation while ensuring the persistence of pristine native habitats and diverse species assemblages, including robust special-status plant and wildlife populations. 3.16 Vegetation Management 1. The City will monitor and manage vegetation to meet prescribed goals for the land . Management strategies such as the following will be implemented where necessary: physical pruning/removal of unwanted or problematic vegetation – especially dead, dying, diseased, or non- native species; controlled, seasonal grazing; erosion and sediment control or removal strategies; and, application of Integrated Pest Management (IPM) practices. 2. Restoration and/or re-vegetation techniques will be utilized when necessary to restore a degraded vegetative community to a fully functioning ecosystem. All restoration activities will utilize site or region-specific native grasses, herbs, shrubs, and trees. Planting of invasive, non-native species will be prohibited. Adjacent landowners are encouraged to undertake efforts to control target non-native vegetation on their land. 3. All existing native trees will be protected wherever possible, and new native trees planted to enhance wildlife habitat. Where possible, vegetation will be left to follow its natural course of succession; however hazardous trees and fire protection will necessitate active management in some areas and instances. The ultimate goal will be to re-establish, or preserve, a self-sustaining ecosystem. 3.17 Cultural Resources Management Miossi Open Space contains and represents an interesting and diverse cultural resource legacy. “All natural and cultural resources are protected…” under the City’s Open Space Regulations (Municipal Code 12.22.050). Accordingly, a Phase I Cultural Resources studied was undertaken by the firm Applied EarthWorks (2019) that included records research, field surveys and documentation, and outreach to historically and culturally affiliated Native American tribal representatives. Applied EarthWorks identified several historic-era resources and recorded the historic dam and associated infrastructure that was part of the initial water system supplying water to the City of San Luis Obispo. Tribal representatives requested a site visit and cultural sensitivity training for staff prior to the start of any construction. Improved trailhead signs and a new kiosk will provide the opportunity to present an educational panel to the public that broadly details the cultural and historic nature of the property. Applied Earthworks’ recommendations, incorporated here as policy, are as follows: 1. Conduct an evaluation of the dam and associated infrastructure (AE-4087-01H) to determine if this resource is eligible for the CRHR. Currently this resource will not be affected by the Project; however, due to the potential for this resource to be significant under CEQA, the City may need to assess the level any impacts on this resource in the future. 2. Several potentially historic isolated resources were noted (i.e. power poles, old road segment s, a cattle trough) in the Project area. These miscellaneous features and AE-4087-01H have the potential of being vandalized by the public when the trails open. The power poles contain glass insulators both within the Project area and directly adjacent to the Project area. Glass insulators are considered collector items and there is high potential that individuals will take them. Additionally, AE-4087-01H (dam on San Luis Creek) is directly west of Stage Coach Road and can be viewed from the road. The City will consider and implement ways to protect these resources from vandalism and theft. Packet Page 159 Item #12 Miossi Open Space Open Space Conservation Plan 27 3. There is potential for encountering prehistoric or historic-period materials not identified during the current study. Prehistoric materials may include chert flaked stone tools (e.g., projectile points, knives, scrapers) or toolmaking debris; culturally darkened soil (midden) containing fire-altered rocks, artifacts, or shellfish remains; and stone milling equipment (e.g., mortars, pestles, handstones). Historic-period materials might include stone, concrete, wood or adobe building foundations, corrals, and walls; filled wells or privies; mining features; and deposits of metal, glass, and/or ceramic refuse. If any of these materials are found during the course of construction, ground-disturbing activities should be halted, and a qualified archaeologist should be contacted to determine if materials are isolated finds or part of a larger archaeological deposit. If an archaeological site is identified, then the resource should be evaluated for significance under CEQA and further treatment measures may be required. 4. If human remains are discovered during Project construction, work must stop at the discovery location and any nearby area suspected to contain human remains (PRC 7050.5). The San Luis Obispo Coroner must be contacted to determine whether the cause of death should be investigated. If the coroner determines that the remains are of Native American origin, it is necessary to comply with state laws relating to the disposition of Native American burials, which fall within the jurisdiction of the NAHC (PRC 5097). The coroner will contact the NAHC. The NAHC will contact the most likely descendant(s) who will be afforded the opportunity to recommend means for treatment of the human remains following protocols in PRC 5097.98. 3.18 Passive Recreation Common passive recreational activities that are anticipated to take place within Miossi Open Space include wildlife viewing, hiking, and biking. All recreational uses will be monitored and patrolled in accordance with the City of San Luis Obispo’s Open Space Regulations, Municipal Code, Chapter 12.22, in general. Active recreational uses are considered more intrusive to the local natural environment and include activities such as high intensity events, horseback riding, discharge of weapons, paintball, and hunting that will be prohibited. All passive recreation uses will be monitored for potential impacts to plant species and wildlife habitat that occur within Miossi Open Space. 3.19 Scientific Research Non-destructive scientific study and research will be permitted with prior, written approval from the City’s Natural Resources Manager. A condition of approval will be that the applicant provides the City with a written report of the findings of the study. This will assist the City in compiling a detailed inventory of natural and biological resources located within Miossi Open Space. Numerous research projects could arise from this Conservation Plan. Issues such as successional vegetation planning for climate change or post-fire circumstances, non-native species control, species population monitoring, and drainage and sedimentation analysis projects could easily be developed with students to further the collective knowledge base of Miossi Open Space, as well as assist in adaptive management strategies. 4. Conservation Plan 4.1 Naming Miossi Open Space shall be the name of the plan area. The property is comprised of a single holding acquired at one time from one party. It is therefore an “Open Space,” according to the City’s Open Space Regulations (Municipal Code, 12.22.030). 4.2 Land Use Designations The property is within the land use jurisdiction of the County of San Luis Obispo and is zoned for agriculture and rural lands. Internal land uses of Miossi Open Space are explained below, and depicted in the following map, Figure 11. Packet Page 160 Item #12 Miossi Open Space Open Space Conservation Plan 28 4.2.1 Management Areas a. Habitat Area – Land areas where the primary objective will be to protect natural resources by maintaining intact native plant communities and habitat for both resident and migratory wildlife. This is by far the largest share of the land uses within Miossi Open Space. b. Maintained Trails – Active management of land in these areas will be required to facilitate approved activities while protecting valuable natural resources. These trails are generally kept clear and receive maintenance as needed to prevent erosion, pooling of water, and instability. Slopes range generally from 10% or less to as much as 30%. Both hiking and biking is allowable on maintained trails. c. Dirt Road – A vehicular access road provides access through the lower portion of the property, and also through the upper portion of the property if accessed through Los Padres National Forest and Cal Poly lands. These areas will be managed primarily as a trail corridor, and will require periodic maintenance of rolling dips and tranverse trenches in order to direct water drainage to the inlet facility at the bottom. Both hiking and biking is allowed on dirt roads. Vehicular use shall be restricted to authorized City personnel for management and maintenance purposes only, for emergency services, and in accordance with the Miossi family’s reserved access rights. d. Drainage and culverts – Drainage facilities consisting of a small concrete channel and culvert outlets are located along the access road and will require short-term repair, as well as periodic maintenance and soil removal in order to remain functional. e. Viewing Benches – One viewing benches be installed in the upper portion of the property to honor a significant gift made by the Forbes Family to help the City acquire Miossi Open Space. f. Grazing – The grassland portions of Miossi Open Space were historically grazed by cattle. Secure perimeter fencing and a steady supply of stock water will require periodic maintenance; controlled seasonal grazing is a valuable management strategy for reducing hazardous fuel loads, while the recruitment of native bunchgrasses and annual forbs that are adapted to a disturbance regime is also a desired management goal. Successful implementation may require the use of electric “hot wire” fence, portable watering facilities, and close supervision. g. Gates, Kiosks, Signs, and Fencing – The entry gate at Old Stagecoach Road shall be replaced and maintained in functional condition to ensure readily available access for emergency and maintenance purposes. A new trailhead entry will be installed at this location to inlcuide split rail fencing, informational kiosk, and signs within Miossi Open Space, all of which will require ongoing maintenance to remain in functional condition. As fencing is repaired or replaced, five-strand fencing should be installed that is barbless on the top and bottom strand, with the bottom strand being located 18” off the ground in order to allow for safe wildlife passage both over and under the fence. h. Restoration Areas – Several areas of Miossi Open Space warrant restoration activities. These include the mapped invasive weed species population mapped, as well as two areas of erosion proximate to the access road in both the lower and upper portions of the property. Packet Page 161 Item #12 Miossi Open Space Open Space Conservation Plan 29 Figure 10: Miossi Open Space Management Areas and Trail Map Packet Page 162 Item #12 Miossi Open Space Open Space Conservation Plan 30 4.3 Photo Monitoring Points Photo-monitoring points throughout Miossi Open Space have been established in order to document baseline conditions and periodically observe changes. Photo points include property corners, areas of heavy public traffic, areas likely to suffer erosion damage, and habitats with sensitive plant and wildlife species. The photo points will be used to establish baseline conditions. Additional poin ts may be added as necessary if conditions change or new issues arise. Photos points are included as Appendix A. 4.4 Needs Analysis The Miossi Open Space Conservation Plan contemplates the need for a variety of projects and initiatives in order provide long-term stewardship, restoration, and proper management of the land. 4.4.1 Resource Management and Protection Biological surveys are the basis for natural resource management in Miossi Open Space. After the initial surveys conducted for the creation of this Conservation Plan, the City will need to monitor and protect the habitat areas and sensitive species identified, as well as update species inventories from time to time. 4.4.2 Resource Enhancement Enhancement of natural resources will focus on restoration of two areas, as described in 4.2.1(h), above. 4.4.3 Signage Signage for Miossi Open Space will a three-panel kiosk at the main trailhead at Old Stagecoach Road and will highlight natural and historic resources with interpretive features, as well as provide a trail map graphic. Signs located at the trailhead and throughout the property ill be used to provide directions and location for safety purposes, apprise users of open space regulations, and identify adjacent private property ownership to discourage trepass. 4.4.4 Trailhead Amenities and New Trails All new trailhead amenities and trails will be constructed in accordance with City’s Open Space Maintenance Plan (2015). A new entry gate at the main trailhead at Old Stagecoach Road, split rail fencing, and a wildlife-friendly garbage receptacle and “mutt mitt” dispenser will be installed. These trails will be constructed by City staff to contemporary standards for slope and drainage, and shall be designed to minimize any potential impacts to sensitive resources or nearby neighbors. 4.4.5 Site Stewardship and “Pride of Ownership” Additional needs at Miossi Open Space include the following items: • Regular ranger and sheriff patrols due to the remote location of the trailhead • Promptly attend to and abate graffiti • Remove trash, refuse, broken bottles • Maintain drainage facilities • Protect against off-trail use and pilferage or defacement of cultural resource values identified by Applied EarthWorks (2019). 6. Wildfire Preparedness Plan Miossi Open Space is designated as a Very High Fire Hazard Severity Zone by Cal Fire. Miossi Open Space is entirely surrounded by other open land uses comprised of private ranches and other conservation lands. Significant wildland fire hazard risk exists due to prevaili ng westerly and seasonal winds; presence of annual grassland, chaparral, oak woodland, other mixed trees and vegetation, and adjacency to US 101and the Los Padres National Forest landscape. The Cuesta Ridge landscape, in general, has a significant recorded fire history in this system, as well as recent smaller events. A key Packet Page 163 Item #12 Miossi Open Space Open Space Conservation Plan 31 component of the Conservation Plan is to address fire hazard that could result in unacceptable safety risk, property loss, and impacts to the environment. Accordingly, City Open Space Regulations prohibit fires, smoking, discharge of weapons, and fireworks or any kind, and also allow for closure if hazardous conditions warrant such action (12.22.050). Important pre-fire activity includes the use of controlled and seasonal grazing (as described in 4.2.1(f), above). The access roads throughout the property have historically been regularly graded by Cal Fire to provide firefighting access, as well as to serve as a fuel break along the top of the ridge in the upper portion of the property Miossi Open Space is accessible to wildland fire fighting apparatus (Type III or similar), and primary responsibility is with Cal Fire due to the property being located in County of San Luis Obispo juris diction. Driving access into Miossi Open Space is through the access road located off of Old Stagecoach Road, which can be opened with a Parks Master key (marked PM on the lock itself). There are several other access points that provide emergency ingress and egress to open space users from the westerly and northerly portions of the property. Aerial wildland fire fighting apparatus would also likely be called for in the event of any fire on or near the property. The City does not maintain any critical, at-risk infrastructure within the property itself. 7. Implementation General maintenance activities in accordance with the adopted policies described in Conservation Guidelines for Open Space Lands of the City of San Luis Obispo and the Conservation and Open Space Element shall be implemented on a regular or as-needed basis. Specific Tasks are anticipated as follows, subject to available funding: Prior to Opening the Property to the Public • Provide tribal representative site visits; arrange and attend cultural resources sensitivity training with Ranger Service and Natural Resources staff, as well as volunteer trail crew members • Install “wildlife friendly” perimeter fence along the southerly property boundary • Install new signage at trailheads and along trails • Install entry gate, kiosk, parking and fencing, and trailhead amenities (trash can and mutt mitts) • Maintain and repair erosion and drainage areas along existing access routes • Install new trail bypass around erosive landslip area in the upper area of the property • Begin ongoing invasive weed species treatment Years 1-3 • Install new trail sections • Implement and monitor grazing strategy • Evaluate potential for carbon farming activities • Futher evaluate the historic dam and associated infrastructure to determine eligibility for the California Register of Historic Resources Ongoing Specific Tasks • Maintain drainage systems, road, and trails • Monitor ecosystem health • Monitor non-native, dead, or dying vegetation and remove as appropriate • Regularly patrol the property and interact with users • Weed whacking, mowing, and grazing for hazardous fuel reduction • Site stewardship and “pride of ownership” tasks • Work with local universities to contiunue resource inventories and research opportunities Packet Page 164 Item #12 Miossi Open Space Open Space Conservation Plan 32 8. Fiscal Statement Day-to-day management of Miossi Open Space will continue to be supported through the operating budgets within the Natural Resources Program and Ranger Service. City staff has developed a n ongoing Capital Improvement Plan (CIP) program for major maintenance activities and improvements that is considered as part of the City’s bi-annual Financial Plan. The program will include signage, trail work, and trailhead amenities. City staff will also pursue grants and volunteers to augment funding for this plan’s identified projects. Overall, the fiscal impact of the conservation plan and its implementation is considered relatively minor given opportunities to phase projects and leverage modest investments of City funds. 9. Updates and Amendment This Conservation Plan is intended to guide management actions over the course of the next ten years, after which time staff should consider the need for an update. Any portion of the plan may be considered for amendment upon request. Any citizen or other interested party may initiate such a request, and shall be directed to the City Manager or designee. Such a request will include the nature of the requested amendment and rationale for the request. If appropriate, the amendment will be processed in the same manner as the original Conservation Plan. Figure 11: Panoramic Photo from “Above the Tracks” on Miossi Open Space Packet Page 165 Item #12 Miossi Open Space Open Space Conservation Plan 33 Appendix A: Photo Monitoring Points Photo monitoring points for Miossi Open Space, as discussed in Section 4.3. These locations may be modified, or new locations may be added, as conditions warrant. Table 3: Photo Monitoring Points: (All photos established by Terra Verde Environmental between April and June 2019) 1. 2. Packet Page 166 Item #12 Miossi Open Space Open Space Conservation Plan 34 3. 4. 5. Packet Page 167 Item #12 Miossi Open Space Open Space Conservation Plan 35 6. 7. 8. Packet Page 168 Item #12 Miossi Open Space Open Space Conservation Plan 36 9. 10. 11. Packet Page 169 Item #12 Miossi Open Space Open Space Conservation Plan 37 Appendix B: Soils Map for Miossi Open Space Packet Page 170 Item #12 1 Hill, Robert From:D Dollar Sent:Wednesday, December 11, 2019 2:44 PM To:Hill, Robert Subject:Miossi Open Space Comments Hi Bob, I have some comments for the Miossi Open Space Plan. Comments We are very fortunate in San Luis Obispo to have such wonderful Open Spaces around the city. Those that were before us deserve lots of credit for the foresight of the program. I think we are at the point in the Natural Resources Program where we need to apply experiences learned at our various Open Spaces and apply them as we move forward. My comments are meant in the spirit of improving the Natural Resources and that future generations of residents will be grateful. As things go, it’s all too easy to think of the Open Space Program as a Recreation Program. When in doubt about issues, come down on the side of protection natural resources over recreational desires, the resources will thank you, and so will future generations. 1. Hire another full time Ranger for the Open Spaces. Ranger presence makes a difference. Our Open Spaces are spread out, from Johnson Ranch to Miossi and Stenner Springs, with points in between. Have Ranger training in Natural Resources so that Rangers fully understand Open Space Plans and can quickly identify unauthorized trails and activity - and take action to correct early and possibly prevent problems from developing into major projects that need rehab. 2. Designate the maximum amount of the 266 acres as Habitat, aim for over 90%. If some land is in restoration, aim to restore to Habitat status is the near term. 3. Wildlife Corridor - maximize tie in with surrounding areas, other side of the Freeway and railroad tracks and consider Wildlife Overpass (freeway and railroad). Work closely with neighboring agencies and landowners. Make the wildlife corridor effective. 4. No bikes, horses or dogs in wildlife corridor. Reduce stress on wildlife and improve effectiveness. 5. Have a major trail with no bikes, horses or dogs. 6. No night time use to improve effectiveness of wildlife corridor. Also, consider seasonal closures for significant wildlife activities. Also seasonal closure to dogs for wildlife. 7. Strong protections for aquatic and riparian resources. Are chain ferns present? If so, consider them as a keystone plant. 8. Grazing - Use only for Natural Resource objectives that are quantified and monitored for compliance with objectives. Keep out of riparian areas. 9. Fire - Coordinate fire dispatch plans with City FD, County and Cal Fire. Establish Resource Adviser (Nat Resources Manager, City Biologist) contacts for the fire dispatch planning. This way, rare species, important aquatic habitat, cultural resources, etc. are known before a fire and during a fire, fire fighting operations can get first hand knowledge of valuable resources. 10. Levels of Acceptable Change - as I look around our other Open Spaces, I have to question the amount of erosion, trail widening, shortcuts, unauthorized trails, etc. If rehab projects are not staying ahead of resource degradation, closure might be appropriate (six months to two years). Make early intervention the norm at Miossi OS. Establish Levels of Acceptable Change. Please keep me posted on any documents available, meetings, etc. Thank You, Don Dollar Packet Page 171 Item #12 1 Hill, Robert From:Christopher Hamma Sent:Wednesday, December 18, 2019 4:26 PM To:Hill, Robert Subject:Miossi Ranch Open Space Conservation Plan Comments Hi Bob, I'm writing to provide my comments after the Miossi Ranch open space presentation last week. 1) Please continue to pursue the trail connection with Cal Poly on the northwest side of the property. 2) Please consider having a kiosk panel created in conjunction with local Native American representatives, assuming they're interested, and placing perhaps two or three copies of the panel on various open space kiosks around the City. 3) Has the City considered providing any open space signage or outreach in Spanish, and perhaps other languages (e.g., Chinese, Vietnamese)? Based on my volunteer ESL tutoring with Literacy for Life over the past few years, I can report that there are a surprising number of residents in the area who speak a language other than English as their primary (or only) language. Thanks for the presentation, and for soliciting public comments. Happy holidays to you and your family, Chris Hamma Packet Page 172 Item #12 1 Hill, Robert From: Sent:Monday, December 23, 2019 12:12 PM To:Hill, Robert Subject:Miossi Open Space Plan Dear Bob: I had a chance to look over the Miossi Open Space Plan. Overall I think the plan covers most everything and looks reasonable to move forward. There may be a few other things that might want to be addressed in the plan. 1. With the new access at Stagecoach Road and the closure on parts of West Cuesta Ridge. I believe you will be creating an increased opportunity for downhill riders to stage at the lower parking area. Then drive up Old Stage Coach Road to the Summit. Then ride down rollercoaster to the Miossi Open Space Area. 2. Not sure how the new parking area will impact the owners of the Ahearn Ranch along Old Stagecoach Road. 3. Lastly. Not sure if the lower parking is posted for no parking to prevent overnight camping. This siye may get more popular once people know it is there. That is all I have for now. Sincerely, Gary Felsman San Luis Obispo, CA 93401 Support the Land Conservancy of SLO (Local People for Local Land) and The Ventana Wilderness Alliance helping to restore trails in the Big Sur Wilderness. Packet Page 173 Item #12