HomeMy WebLinkAbout03-03-2020 Agenda Packet
Tuesday, March 3, 2020
6:00 PM
REGULAR MEETING
Council Chamber
990 Palm Street
San Luis Obispo Page 1
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 Pease
PROCLAMATIONS
1. PROCLAMATION CONDEMNING ALL FORMS OF HATRED AND BIGOTRY
(HARMON – 5 MINUTES)
Mayor Harmon will proclaim that the City Council condemns all forms of hatred and
bigotry.
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 March 3, 2020 Page 2
CONSENT AGENDA
Matters appearing on the Consent Calendar are expected to be non-controversial and will be
acted upon at one time. A member of the public may request the Council to pull an item for
discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of
the Council chooses another time. The public may comment on any and all items on the
Consent Agenda within the three-minute time limit.
2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
(PURRINGTON)
Recommendation:
Waive reading of all resolutions and ordinances as appropriate.
3. MINUTES REVIEW - FEBRUARY 18, 2020 CITY COUNCIL MEETING
(PURRINGTON)
Recommendation:
Approve the minutes of the City Council meeting held on February 18, 2020.
4. FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 2428 PHASE
1 – A RESIDENTIAL SUBDIVISION AT 3000 CALLE MALVA (TOSCANO)
(CODRON / VAN BEVEREN)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, accepting the Public Improvements, certifying completion of the Private
Improvements, and authorizing release of the Securities for Tract 2428 – Phase 1 (3000
Calle Malva).”
5. EXERCISE THE FIRST EXTENSION OF THE 2015 TRANSIT OPERATIONS &
MAINTENANCE AGREEMENT WITH FIRST TRANSIT INC.
(STANWYCK / ANGUIANO)
Recommendation:
Authorize the City Manager to exercise the first of three possible extensions of the 2016
Transit Operations & Maintenance Agreement with First Transit Inc.
San Luis Obispo City Council Agenda March 3, 2020 Page 3
6. CALLE JOAQUIN LIFT STATION REPLACEMENT PROJECT, SPEC. NO. 91118
- EASEMENT PURCHASE (FLOYD / HIX / METZ)
Recommendation:
1. Approve an Easement Deed for the purchase of real property from G6 Hospitality
Property, LLC for construction of the Calle Joaquin Lift Station Replacement Project and
authorize the Mayor to execute the Deed; and
2. Approve a Right of Way Agreement with G6 Hospitality Property, LLC in the amount of
$95,000 and authorize the Mayor to execute the Agreement; and
3. Authorize the City Manager to execute any necessary supplemental escrow paperwork to
complete the transaction.
7. AUTHORIZE APPLICATION FOR THE CALIFORNIA RESILIENCY
CHALLENGE GRANT (FLOYD / HIX / LEHMAN)
Recommendation:
1. Approve of Utility Staff’s preparation and submission of a grant application for the
California Resiliency Challenge Grant Project; and
2. Authorize the City Manager, or their designee, to execute the required grant application
documentation and, should grant funds be awarded, make the necessary budget
adjustments.
8. AWARD CONTRACT TO ALEXANDER'S CONTRACT SERVICES FOR METER
READING SERVICES (FLOYD / THOMPSON)
Recommendation:
Award a three-year contract to Alexander’s Contract Services for contract utilities meter
reading in an amount not to exceed $195,000 per year.
9. SECOND READING OF ORDINANCE NO. 1679 (2020 SERIES) TO AMEND TITLE
17 OF THE MUNICIPAL CODE ASSOCIATED WITH ACCESSORY DWELLING
UNITS AND JUNIOR ACCESSORY DWELLING UNITS
(CODRON / VAN LEEUWEN)
Recommendation:
Adopt Ordinance No. 1679 (2020 Series) entitled, “An Ordinance of the City Council of the
City of San Luis Obispo, California, amending Title 17 (Zoning Regulations) of the
Municipal Code associated with Accessory Dwelling Units and Introducing Junior
Accessory Dwelling Units.”
San Luis Obispo City Council Agenda March 3, 2020 Page 4
10. SANTA ROSA AT MONTEREY REIMBURSEMENT AGREEMENT WITH 1144
HIGUERA STREET, LLC STANWYCK / HORN)
Recommendation:
1. Adopt a Resolution entitled, “A Resolution of The City Council of the City of
San Luis Obispo, California, approving a Reimbursement Agreement with 1144 Higuera
Street, LLC for Oversized Public Improvements and Related Budgetary Appropriations”
for the construction of specific public improvements by 1144 Higuera Street, LLC that
both maintain and improve the downtown, and authorize the City Manager to execute
this Agreement; and
2. Advance Infrastructure Investment Funds in the amount of $500,000 from Fiscal Year
2020-21 to 2019-20; and
3. Defer Fiscal Year 2020-21 Downtown Renewal Project to support the cost associated
with the Reimbursement Agreement.
PUBLIC HEARING AND BUSINESS ITEMS
11. POLICE DEPARTMENT 2019 CRIME REPORT COMPARISON AND UPDATE
(CANTRELL / AMOROSO – 30 MINUTES)
Recommendation:
Receive and file the 2019 Police Department Crime Report.
12. CONSIDERATION OF THE 2020 COMMUNITY DEVELOPMENT BLOCK
GRANT FUNDING RECOMMENDATIONS
(CODRON / VERESCHAGIN – 15 MINUTES)
Recommendation:
As recommended by the Human Relations Commission, adopt a Resolution entitled, “A
Resolution of the City Council of the City of San Luis Obispo, California, approving the
2020 Community Development Block Grant (CDBG) Program,” to approve funding
allocations for an estimated $496,355 of CDBG funds for the 2020 Program Year.
San Luis Obispo City Council Agenda March 3, 2020 Page 5
13. INTRODUCE AN ORDINANCE AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’
RETIREMENT SYSTEM (IRONS / ROLTGEN – 10 MINUTES)
Recommendation:
1. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San
Luis Obispo, California, authorizing an amendment to the Contract between the City
Council of the City of San Luis Obispo and the Board of Administration of the
California Public Employees’ Retirement System;” and
2. Adopt a Resolution entitled, “A Resolution of Intention to approve an amendment to the
contract between the Board of Administration of the California Public Employees’
Retirement System and the City Council of the City of San Luis Obispo.”
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 annou ncement, 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, March 17, 2020 at 4:30 p.m.
and 6:00 p.m., respectively, in the Council Chamber, 990 Palm Street, San Luis Obispo,
California.
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.
CITY OF SAN LUIS OBISPO
AFFIDAVIT OF POSTING AGENDA
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO ) SS.
CITY OF SAN LUIS OBISPO )
AFFIDAVIT OF POSTING – CITY COUNCIL
REGULAR AGENDA OF: MARCH 3, 2020
I, Megan Wilbanks, declare as follows:
That I am the Deputy City Clerk for the City of San Luis Obispo; that a copy of the above referenced
meeting agenda was posted on the bulletin board outside City Hall, 990 Palm Street, San Luis Obispo,
California, and on the City’s website www.slocity.org at 2/26/2020 9:45 AM.
I declare under the penalty of perjury that the foregoing is true and correct.
________________________
Megan Wilbanks
Deputy City Clerk
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 • FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a
resident of the county aforesaid; I am over the
age of eighteen years. and not a party interested
in the above entitled matter. I 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'.:
nonparei l), ha s been publi s hed in each regular ·
and entire iss ue of said newspaper and not in ·
any supp lement thereof on the following dates,
to-wit:
Patricia Horton. New Times Ugals
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SLO CITY CLERK
Tuesday, February 18, 2020
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, February
18, 2020 at 6:02 PM in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo,
California, by Mayor Harmon.
ROLL CALL
Council Members
Present: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor
Aaron Gomez, and Mayor Heidi Harmon.
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 Christianson led the Pledge of Allegiance.
PRESENTATIONS
1. INTRODUCTION OF PARKING SERVICES MANAGER - GAVEN HUSSEY
Assistant City Manager Shelly Stanwyck introduced Gaven Hussey, Parking Services
Manager.
2. TEEN DATING VIOLENCE AWARENESS & PREVENTION MONTH
Mayor Harmon presented a Proclamation to Stella McSween and Aisling Meyer declaring
February to the “Teen Dating Violence Awareness & Prevention Month.”
3. PRESENTATION ON SLO FORWARD
City Manager Derek Johnson provided a presentation on SLO Forward.
Item 3
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San Luis Obispo City Council Minutes of February 18, 2020 Page 2
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Don Hedrick
Jamie Sanbonmatsu
Bonnie DeSantos
Jeffrey Specht
---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 4 thru 13.
PUBLIC COMMENT
Item #6 – Jeffrey Specht
Item #14 – Cristina Pires
Item #14 – Dale Ginder
Item #9 – Don Hedrick
---End of Public Comment---
4. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate.
5. MINUTES REVIEW - JANUARY 21, 2020 AND FEBRUARY 4, 2020 CITY COUNCIL
MEETING
CARRIED 5-0, to approve the minutes of the City Council meeting held on January 21, 2020
and February 4, 2020.
6. CITY COUNCIL PROFESSIONAL DEVELOPMENT FUND TRANSFER
CARRIED 5-0, to authorize staff to transfer funds from Council Member Carlyn
Christianson’s professional allowance account to Vice Mayor Aaron Gomez’s professional
allowance account to allow him to attend the Global Waste Management Symposium 2020.
7. ANNUAL REPORT OF THE AVILA RANCH DEVELOPMENT AGREEMENT AND
COMMUNITY FACILITIES DISTRICT
CARRIED 5-0, to receive and file the annual report for the Avila Ranch Development
Agreement and Community Facilities District.
8. ANNUAL REPORT FOR THE SAN LUIS RANCH MITIGATION MONITORING
AND REPORTING PROGRAM AND DEVELOPMENT AGREEMENT
CARRIED 5-0. to receive and file the annual report for the San Luis Ranch Mitigation
Monitoring and Reporting Program and Development Agreement.
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San Luis Obispo City Council Minutes of February 18, 2020 Page 3
9. AUTHORIZE APPLICATION FOR 2020-21 SENATE BILL 1 STATE OF GOOD
REPAIR TRANSIT GRANT FOR THE PURCHASE OF ELECTRIC BUSES
CARRIED 5-0, to:
1. Adopt Resolution No. 11086 (2020 Series) entitled, “A Resolution of the City Council of
the City of San Luis Obispo, California, authorizing the City Manager or their designee
to apply, execute and fulfill any related California State of Good Repair Transit Grant
Program Applications, Certifications, Assurances, Forms, Agreements, and associated
documents on behalf of the City;” and
2. Approve a budget amendment to increase the budget reflecting these grant funds, if
awarded.
10. SECOND READING OF ORDINANCE NO. 1677 (2020 SERIES) AMENDING
SECTIONS 13.04.060 AND 13.04.110 OF MUNICIPAL CODE CHAPTER 13.04
(WATER SERVICE) RELATING TO DISCONTINUATION OF RESIDENTIAL
WATER SERVICES FOR NON-PAYMENT
CARRIED 5-0, to adopt Ordinance 1677 (2020 Series) entitled, “An Ordinance of the City
Council of the City of San Luis Obispo, California, amending Sections 13.04.060 and
13.04.110 of the San Luis Obispo Municipal Code Chapter 13.04 – Water Service.”
11. AUTHORIZATION TO INCREASE FUNDS FOR THE PALM-NIPOMO GARAGE
PROJECT, SPECIFICATION NO. 90435
CARRIED 3-0-2 (COUNCIL MEMBER PEASE AND VICE MAYOR GOMEZ
RECUSED), to:
1. Approve a contract amendment with Watry Design, Inc. for the continued design of the
Palm-Nipomo Garage Project; and
2. Adopt Resolution No. 11087 (2020 Series) entitled, “A Resolution of the Council of the
City of San Luis Obispo, California, approving an amendment to the Palm–Nipomo
Garage Project and related Budgetary Appropriations;”
3. Authorize the City Manager, or their designee, to approve future contract amendments for
the Project if within available and approved funding.
12. AWARD OF SOUTH HILLS RADIO SITE UPGRADES PROJECT,
SPECIFICATION NO. 91584
CARRIED 5-0, to:
1. Award a construction contract to Specialty Construction, Inc. in the amount of
$760,270.25 for the South Hills Radio Site Upgrades Project; and
2. Approve a transfer of $138,012 from the Information Technology Replacement Fund
Undesignated Capital Account to the Community Safety Emergency Response
Communication Equipment Account to fund the project.
Item 3
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San Luis Obispo City Council Minutes of February 18, 2020 Page 4
13. FISCAL YEAR 2020-21 GRANT APPLICATION FOR OFFICE OF TRAFFIC
SAFETY GRANT PROGRAM
CARRIED 5-0, to:
1. Authorize the Police Department to submit a grant application to the Office of Traffic Safety
for a Fiscal Year 2020-21 Selective Traffic Enforcement Program not to exceed $120,000;
and
2. If the grant is awarded, authorize the City Manager to execute all grant related documents
and authorize the Finance Director to make the necessary budget adjustments upon the award
of the grant.
14. SECOND READING OF ORDINANCE NO. 1679 (2020 SERIES) TO AMEND TITLE
17 OF THE MUNICIPAL CODE ASSOCIATED WITH ACCESSORY DWELLING
UNITS AND JUNIOR ACCESSORY DWELLING UNITS
CARRIED 5-0, to reintroduce Ordinance No. 1679 (2020 Series) entitled, “An Ordinance of
the City Council of the City of San Luis Obispo, California, amending Title 17 (Zoning
Regulations) of the Municipal Code associated with Accessory Dwelling Units and
Introducing Junior Accessory Dwelling Units.”
With the following corrections:
Remove - 5.a.i. Accessory dwelling units shall conform to all applicable building and
construction codes.
Remove -3.a.i. Junior accessory dwelling units shall conform to all applicable building and
construction codes.
Add – C.2.g Junior accessory dwelling units shall conform to all applicable building and
construction codes.
Amend C.6 Covenant agreement as follows.
Prior to the issuance of building permits for a junior accessory dwelling unit, a covenant
agreement shall be recorded which discloses the structure’s approved floor plan and status as
an “junior accessory dwelling unit” and agreeing that the owner of the property will occupy
either the primary residence or the junior accessory dwelling unit. be owner occupied. This
agreement shall be recorded in the office of the County Recorder to provide constructive
notice to all future owners of the property.
STUDY SESSION ITEMS
15. STUDY SESSION ON MISSION PLAZA RESTROOM REPLACEMENT AND CAFÉ,
SPECIFICATION NO. 91439
Vice Mayor Gomez recused himself from this item due to the proximity of this business to
the proposed project. Mayor Gomez left the dais.
Assistant City Manager Shelly Stanwyck and Engineer Richard Burde provided an in-depth
staff report and responded to Council questions.
Public Comments:
Amira Albonni
---End of Public Comment---
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San Luis Obispo City Council Minutes of February 18, 2020 Page 5
By consensus, Council provided the following direction:
• Supportive of the design
• Prefer stand-alone café/kiosk
• Design big improvement like metal pieces. Roof needs more articulation
• Add pots or something to separate the seating from the restroom area
• Move café further away from the restroom so you can see if from Chorro Street
• Supportive of next steps of review process
RECESS
Council recessed at 8:30 p.m. and reconvened at 8:45 p.m., with all Council Members present.
PUBLIC HEARING ITEMS AND BUSINESS ITEMS
16. 2019-20 MID-YEAR BUDGET REVIEW
Finance Director Brigitte Elke and Budget Analyst Natalie Harnett provided an in-depth staff
report and responded to Council questions.
Public Comments:
Bettina Swigger
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
COUNCIL MEMBER STEWART, CARRIED 5-0 to:
1. Receive and discuss an update to the City’s work programs, workload and performance
measures, and changes in financial positions based on revised projections for all funds for
the 2019-20 fiscal year; and
2. Receive an update on the status of the current Major City Goals; and
3. Receive an update on the status of the Capital Improvement Plan; and
4. Adopt Resolution No. 11088 (2020 Series) entitled, “A Resolution of the City Council of
the City of San Luis Obispo, California, approving an amendment to the 2019-20 Budget
Allocation,” to approve the transfer of $380,000 from the City’s Capital Reserve to begin
security related projects and to appropriate $179,910 of over-realized development
services revenue into the Development Services Designation; and
5. Approve one full-time equivalent (FTE) position in support of the reorganization of
Community Services departments.
COUNCIL COMMUNICATIONS AND LIAISON REPORTS
Council Member Stewart indicated she went on a tour of 40 Prado and the daycare at Ludwick
Center.
Vice Mayor Gomez gave an update on the last IWMA meeting.
Mayor Harmon went to the CL Smith reading of “You Can Be A Cat”. She also gave an update
on the Investment Oversight Committee meeting.
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San Luis Obispo City Council Minutes of February 18, 2020 Page 6
ADJOURNMENT
The meeting was adjourned at 9:42 p.m. The next Regular City Council Meeting is scheduled for
Tuesday, March 3, 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
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Department Name: Community Development
Cost Center: 4003
For Agenda of: March 3, 2020
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Director of Community Development
Prepared By: Dan Van Beveren, Senior Civil Engineer – Development Review
SUBJECT: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 2428
PHASE 1 – A RESIDENTIAL SUBDIVISION AT 3000 CALLE MALVA
RECOMMENDATION
Adopt a Resolution (Attachment A) accepting the public improvements, certifying completion of
the required subdivision private improvements, and releasing the securities for Phase 1 of Tract
2428.
DISCUSSION
Background
Tract 2428, located at 3000 Calle Malva, as shown on the attached Vicinity Map (Attachment B),
and marketed as the “Toscano” Development, includes a total of 172 lots. Tract 2428 consists of
161 single-family lots, five lots for up to 26 units of affordable housing, five lots for riparian
open space, and one 71-acre hillside lot for permanent open space.
Tract 2428 is divided into three phases. A map depicting the tract improvements with phasing
information is included as Attachment C. The final map for Phase 1 (Attachment D) was
approved by City Council on August 16, 2016, by Resolution No. 10737 (2016 Series). Phase 1
included 49 lots consisting of:
1. 45 single-family lots
2. Two lots for riparian open space
3. One 71-acrea hillside lot dedicated to the City for permanent open space
4. One lot for subsequent Phase 2 and Phase 3 subdivisions
Acceptance of Phase 1 Public Improvements
Work has been completed on the required public improvements for Phase 1. In general, the
improvements consist of street construction, street widening, medians, curb, gutter, sidewalks,
streetlights, water main and sewer main extensions, fire hydrants, reclaimed water main, storm
drain improvements, and landscaping.
A draft resolution titled Accepting and Certifying Completion of the Phase 1 Subdivision
Improvements is attached. This resolution authorizes the Public Works Director to release the
faithful performance securities, and to release the warranty securities upon satisfactory
completion of the one-year warranty period and submittal of the record drawings.
Item 4
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Certification of Phase 1 Private Improvements
Private improvements include items such as pathways, driveways, drainage improvements,
landscaping, and lighting. Drainage and landscaping improvements include bio-swales and other
water quality improvements. The bio-swales were proposed by the developer in order to satisfy
requirements of the Regional Water Quality Control Board (Water Board) to treat storm water
prior to allowing it to be discharged into the downstream storm drain system. The design of the
bioswales is consistent with the California Stormwater Quality Associations standards for water
quality treatment and is widely considered a leader in the field of water quality and low impact
design standards since 1989.
The bioswales are located within the public right-of-way between the roadway and the public
sidewalk. The approved plans include a standard residential street section with parking on both
sides of the street. The bioswales are privately owned and maintained, either by the
Homeowner’s Association or in most cases, the owners of the adjacent private properties. They
exist within the public right-of-way under an encroachment agreement.
Homeowner’s in the subdivision have been in contact with City staff and the City Council
expressing concerns with the design and maintenance of the private bioswales. A presentation
was made to the Council during public comment on February 3, 2020, asking that the City
Council not accept Phase I public improvements, unless the private property owners identified
problems with the bioswales are corrected. These problems can be summarized as safety
concerns and long-term maintenance concerns (where maintenance is required by the adjacent
property owner, which is typical of landscaped parkway areas throughout the city).
At this time, staff does not recommend withholding acceptance of public improvements based on
concerns with the bioswales. All public improvements have been constructed per the approved
plans, so it is appropriate for the Council to move forward and accept the improvements. There is
no legal basis for the City to hold on to the financial guarantees provided by the developer for the
purpose of making changes to the bioswales so long as they were installed and completed in
conformity with approved plans. Once accepted, the HOA or individual property owners could
propose changes to their respective bioswales under separate encroachment permits and
agreements with the City and the Regional Water Quality Control Board.
Staff’s recommendation has been communicated to the property owners who have been in touch
with the City regarding this issue. Staff has also been in touch with the developer, Dennis
Moresco, regarding the stated concerns with the approved and installed private bioswale design.
This is a design that is proposed to be replicated in Phase 2 and Phase 3 of Toscano, as well as
other new neighborhoods in the City, such as in the Orcutt Area. In the case of Toscano, Mr.
Moresco has provided a written commitment to work with the City on this issue and, if any
limited changes are supported by the City for Toscano Phase 2 and Phase 3, he has agreed to
voluntarily implement those changes in Phase 1 at no cost to the City or homeowners.
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Previous Council Action
The tentative subdivision map for Tract 2428 was approved by City Council on July 3, 2007, by
Resolution No. 9917 (2007 Series).
Revised conditions that superseded the previous tentative map conditions were approved by
Council on April 15, 2014, by Resolution No. 10514 (2014 Series).
The final map for Phase 1 was approved by City Council on August 16, 2016, by Resolution No.
10737 (2016 Series).
Policy Context
The City Council accepts public improvements and certifies completion of private improvements
in accordance with the Subdivision Map Act and the City’s Subdivision Regulations.
Public Engagement
Public engagement was completed with the approval of the Tentative Map.
CONCURRENCE
The Public Works Director and Utilities Director concur with the recommended action.
ENVIRONMENTAL REVIEW
The Margarita Area Specific Plan and its Final Environmental Impact Report were approved and
certified in October 12, 2004. Tract 2428 was analyzed in a project-specific Initial
Study/Mitigated Negative Declaration and was adopted on May 19, 2015.
The necessary findings and environmental review requirements related to the development of
Tract 2428 were made with the tentative map approval, therefore, no further environmental
review is required as part of this Council action.
FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: No
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund N/A
State
Federal
Fees
Other:
Total
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Typical maintenance and operation of newly accepted public facilities will be required for the
street and utility improvements. Increasing the maintenance budget for the small, incremental
increase in infrastructure to be maintained does not occur with each acceptance of public
facilities. The maintenance budget for these improvements is evaluated and adjusted as needed
with the City’s adoption of its two-year budget. However, the Council action of accepting these
improvements, in itself does not have an associated budget increase.
ALTERNATIVES
Limited alternatives exist in regard to the timing of the acceptance of these improvements.
Ultimately, acceptance of these public improvements is required per the Subdivision Map Act
and Subdivision Agreement. The improvements are in general conformance with the Margarita
Area Specific Plan and the Tentative Map.2. Defer the acceptance until the private property
owner concerns have been resolved. Staff does not recommend this alternative. The City is
delivering water and sewer services to the Phase 1 properties and the streets are being used for
public purposes. Acceptance of these significant public improvements is timely. The private
improvement concerns voiced by some property owners are not consistent. Furthermore, all
property owners are not in agreement regarding the concerns or potential solutions. Once the
improvements are accepted, the public rights-of-way are likewise accepted. Any corrective work
could then be accommodated through encroachment permits on a case-by-case basis.
Attachments:
a - Draft Resolution
b - Vicinity Map
c - Phasing Plan
d - Final Map
Item 4
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R _____
RESOLUTION NO. _______ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ACCEPTING THE PUBLIC IMPROVEMENTS,
CERTIFYING COMPLETION OF THE PRIVATE IMPROVEMENTS,
AND AUTHORIZING RELEASE OF THE SECURITIES FOR TRACT
2428-PHASE 1 (3000 CALLE MALVA)
WHEREAS, the City Council approved the tentative subdivision map for Tract 2428, as
prescribed in Resolution No. 9917 (2007 Series); and
WHEREAS, the City Council made certain findings that superseded the previous tentative
map conditions for Tract 2428, as prescribed in Resolution No. 10514 (2014 Series); and
WHEREAS, the City Council approved the final map for Tract 2428-1 per Resolution No.
10737 (2016 Series); and
WHEREAS, the subdivider has satisfactorily completed a portion of the required Phase 1
improvements in accordance with City standards, specifications, and the subdivision agreement;
and has requested that the City accept of these public improvements for maintenance and operation
by the City; and
WHEREAS, the subdivider has satisfactorily completed the Phase 1 private improvements
in accordance with City standards, specifications and the approved plans, and has requested that
the City certify completion of these private improvements and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The City Council hereby accepts the public improvements for Phase 1.
SECTION 2. The City Council certifies completion of the Phase 1 private improvements.
SECTION 3. The Public Works Director is authorized to release the securities once the
requirements for release are met and to release the warranty/faithful performance security upon
completion of any remaining minor improvements, satisfactory completion of the one-year
warranty period, submittal of record drawings to the satisfaction of the City Engineer.
SECTION 4. The corresponding Labor & Materials security may be released after 90 days
from the date of acceptance of the improvements in accordance with Section 66499.7(h) of the
California Government Code.
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Resolution No. ______ (2020 Series) Page 2
R ______
SECTION 5. The security guaranteeing the workmanship and materials may be released
by the Director of Public Works upon the successful completion of the 12-month warranty time
period from the date of acceptance of the improvements.
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
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Department Name: Public Works
Cost Center: 5201
For Agenda of: March 3, 2020
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager, Community Services
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: EXERCISE THE FIRST EXTENSION OF THE 2015 TRANSIT OPERATIONS
& MAINTENANCE AGREEMENT WITH FIRST TRANSIT INC.
RECOMMENDATION
Authorize the City Manager to exercise the first of three possible extensions of the 201 6 Transit
Operations & Maintenance Agreement with First Transit Inc., at the agreed upon rate.
(Attachment A)
DISCUSSION
Background
The City of San Luis Obispo (City) operates a fixed-route public transit system within City limits
and the California Polytechnic State University (Cal Poly) campus. Vehicle operations and
maintenance have been outsourced and provided under a third-party vendor since the 1990s.
Throughout this time the City has continued to use various vendors/contractors to perform these
duties and often enters into multi-year contracts with potential one year extensions as allowed by
the Federal Transit Administration (FTA).
On June 16, 2015, the City Council approved the award of the Transit Operations and
Maintenance contract to First Transit Inc. who was deemed to be the “best in value” contractor
of the seven firms considered. The recommendation for the award came at the end of a
successful Request for Proposal (RFP) process where multiple contractors submitted proposals
for this work and the competitive process identified the firm that was deemed most appropriate
to conduct the services. This contract called for a base four-year contract term with the potential
for an additional three-year extension each in one-year increments.
Since entering into the contract with First Transit there have been two amendments. In the First
Amendment (Attachment B), Council approved an adjustment to the “Not-To-Exceed” amount
of the price for services due to the expansion of transit services stemming from the Short-Range
Transit Plan changes. In the second amendment (Attachment C), Council approved the pass-thru
procurement of an Automatic Vehicle Location (AVL) system, as the old AVL system was no
longer supported but necessary for managing the operations.
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On July 1, 2019, the City entered into its fourth and last year of the base contract with First
Transit Inc. The contract’s provisions for up to three possible one-year extensions has been
utilized to negotiate with First Transit Inc. for an extension for FY 20-21. Recommendations for
exercising an extension are based on a number of factors including contractor performance,
market indicators, and strategic operational benefits.
Reasons for Extension of Operations and Maintenance Agreement
The Agreement contains a number of key performance indicators (KPI) with associated
liquidated damages and incentives. These KPI are designed to gauge the contractor’s
performance. The City has a high standard for the level of service expected and First Transit Inc.
has satisfactorily met these standards with improvements in safety, reliability and on-time
performance. First Transit Inc. has also demonstrated to be responsive and willing to help the
City deliver changing transit services to the community and be adaptive to change.
Another consideration for making the recommendation to extend the contract, are market
indicators like competitive pricing that may be available if a new RFP process were undertaken.
This is usually somewhat offset by the additional costs for completing the RFP process and the
lost time due to this additional work. Current pricing for the SLO Transit services are in line
with industry indicators and the negotiated amounts are consistent with similar contracts. Given
that no “down swings” in the economy or the transit industry are occurring, staff does not believe
that the City could achieve significantly better pricing by going back out to bid at this time.
Further, negotiated prices with the contractor, herein presented, are in line with the Transit funds
projections and approved 2019-21 budget cycle.
Approving the extension is also considered to have operational strategic benefits. The City has at
least two transformative issues with potential unknowns that could have a drastic impact on any
long-term contract if enacted during this time. First, the City is currently in negotiations with
Cal Poly for a new long-term transit subsidy agreement. The final agreement is anticipated to be
accompanied with additional opportunities for expanded transit service hours or other services.
Service changes in excess of 15% in revenue hours are generally considered reopeners to transit
operations contracts as the level of work can significantly change profit and loss amounts for a
contractor. Doing a major rebid of services could cause complications in contract amounts when
a single year extension can avoid that issue at this time.
Lastly, the City is pursuing expansion of the Transit fleet, with electric transit vehicles, per State
mandates and City Major City Goals. A change to this new technology will have impacts to how
costs are experienced (both good and bad). Therefore, exercising an extension allows the City to
preserve status quo services under existing terms, as staff, quantifies the impacts of these
changes before releasing a new RFP for long-term contract.
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Policy Context
The City Council is the legislative authority and sets the policies under which the City’s
programs operate. The City Council has the power to adopt ordinances and resolutions, make
appointments to the City's advisory bodies, establish policies and approve programs, appropriate
funds, adopt budgets, and approve contracts.
Continuation of this contract is in line with Major City Goals. Particularly with regard to
Sustainable Transportation and Climate Action as mass public transit is widely regarded as more
environmentally superior form of transportation over single-occupant vehicles.
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.
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
Funding Identified: Yes/
Fiscal Analysis:
Funding Sources Adopted FY Cost
Annualized
On-going Cost
Total Project
Cost
Transit Fund $2,738,228 $2,820,950
State
Federal
Fees
Other:
Total $2,738,228 $2,820,950
During the FY 2019-21 budget setting process, the transit operation and maintenance costs for
FY 2019-20 were already known and memorialized as part of the base contract with First
Transit. A 3.5% increase in costs for FY 20-21 was assumed for the second year of the Financial
Plan (the contract cost for a potential extension year of the First Transit Contract). The currently
adopted budget includes $2,738,228 for FY 20-21 purchased transportation for the contract.
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First Transit has requested additional funds attributable to the increases in cost for maintaining
an older fleet (50% of the vehicles past their federally approved “useful-life”), the State
mandated increase to minimum wages, and increased costs for improved driver’s wages aimed
at achieving better employee retention. The difference is roughly $82,000 more than was
originally projected and adopted in the financial plan and equating to a total of $2,820,950.
There is no request for additional funding at this time. The difference can be absorbed in the
Transit Fund’s program, with no impacts to the State’s (20%) operational cost recovery mandate.
Accommodating this increase is largely possible due to the typical cost savings the Transit Fund
experiences annually in staffing, marketing, fuel and other program line items. Possible
adjustments to this amount will be addressed and brought forward for approval as part of the FY
20-21 Supplemental Budget in June 2020.
ALTERNATIVES
Deny the extension request and direct staff to go out to bid. This not recommended as any new
long-term contract will take a significant work effort at this time, may not result in any cost
savings and likely cannot be completed in a time for fiscal year end.
Attachments:
a - First Transit Agreement - Amendment #3 to Extend Contract
b - First Transit Agreement - Amendment #1 dated April 5, 2018
c - First Transit Agreement - Amendment #2 dated January 8, 2019
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AMENDMENT TO AGREEMENT NO. 3
THIS AMENDMENT TO AGREEMENT is made this _______ day of ________, 2020, by and
between the CITY OF SAN LUIS OBISPO a municipal corporation and charter city, hereinafter referred to
as “CITY” and FIRST TRANSIT INC., hereinafter referred to as “CONTRACTOR.”
WITNESSETH:
WHEREAS, on June 16, 2015, the City entered into an Agreement with Contractor for Transit
Operations & Maintenance (Agreement); and,
WHEREAS, on April 5, 2018, the City and Contractor entered into an Amendment to Agreement No.
1, amending the scope of services to reflect changes in Revenue Service Hours as a result of the
implementation of Short-Range Transit Plan; and
WHEREAS, on January 8, 2019, the City and Contractor entered into an Amendment to Agreement
No. 2, amending the scope of services to reflect the pass-thru purchase of an Automatic Vehicle Location
System; and
WHEREAS, the Agreement’s term is set to expire on June 20, 2020 and the City desires to exercise
a one-year contract extension option as indicated in the Agreement’s Section 2.c.; and
WHEREAS, the Agreement requires the City and Contractor to negotiate the price formulas for the
one-year contract extension;
WHEREAS, the Contractor has submitted a proposal for this purpose and said proposal is
acceptable to the City. Attached hereto as attachment A is a copy of the Contractor’s Proposal.
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants
hereinafter contained, the parties hereto agree as follows:
1. TERM OF AGREEMENT
Subject to the terms and conditions of this Amendment to Agreement, the term of this Amendment to
Agreement shall be from July 1, 2020 through and including June 30, 2021.
2. MAXIMUM OBLIGATION
City agrees to pay Contractor in consideration for its services as described herein. The maximum cost to be
paid by City to Contractor shall not exceed $2,820,950 based on services in Agreement’s Exhibit A.
3. PRICE FORMULA
City agrees to pay Contractor for performance of the services set forth in this agreement as follows:
a. Payment of a fixed hourly rate per vehicle service hour of $35.69 in Year One; A vehicle service hour
is defined as on vehicle providing passenger service for one hour during the service hours specified
herein. A vehicle service hour shall be deemed to have commenced when a vehicle leaves CITY’s
Transit Center (located at 990 Palm Street) to provide the services required herein and shall not
include any out-of-service vehicle time used for vehicle operator breaks or lunches. A vehicle service
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.,,
hour shall terminate when a vehicle returns .to CITY Transit Center prior to any cleaning, servicing
or fueling of the vehicle. The hourly rate shall include vehicle operator wages, fringe benefits, indirect
labor and all consumable material costs that can be tracked by vehicle service hour such as vehicle
maintenance parts and supplies including oil.
b. Payment of a fixed monthly rate of $107,562 in Year One; to compensate CONTRACTOR for all
work to be performed under this agreement as defined in Exhibit A, except that which is included
qnder Paragraph 5(a) and Paragraph 7 of this agreement including, but not limited to: vehicle operator
non~service wages; management, controller and maintenance employee wages and said employees
fringe benefits and indirect labor costs; bus washing and cleaning supplies; uniforms; report
reproduction; office supplies; project telephones; all other related operational costs; and the contract
management fee.
c. Payment of a fixed monthly rate of $5,195 in Year One; for the cost incurred in providing all vehicle
and general liability insurance required under this agreement as such insurance is defined in this
agreement. This amount shall be in excess of the fixed monthly rate as defined herein. CITY reserves
the right, however, to alternatively secure all or part of the specified insurance coverage
4. EXTRA SERVICES
Special promotional and community services shall be considered extra services and will be provided only
with the authorization of City and the mutual consent of the Contractor. Such services shall be defined as
those non-permanent service hours operated outside of the services identified in Exhibit A. Extra services
shall be considered a change to this agreement as defined herein and shall be in excess of the maximum price
defined in Paragraph 4. The costs for extra services will be determined at a rate per vehicle service hours of
$35.69 in Year Four and billed separately from the services specified in the Agreement's Exhibit A.
5. All other terms and conditions of the Agreement, Amendment No. 1 and Amendment No. 2 remain in full
force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by and
through their respective officers thereunto duly authorized on the date written below their signatures.
ATTEST:
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
CITY OF SAN LUIS OBISPO
By: _________ _
Derrek Johnson, City Manager
CONTRACTOR:
First Transit Inc.
~,?/ . /.
By: ,9 .Z,..c,t.P~
Fadi Chakbazof
Its: Senior Vice Presi
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Attachment A Item 5
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AMENDMENT TO AGREEMENT NO. 2
THIS AMENDMENT TO AGREEMENT No. 2 is made and entered in on January 8, 2019, by and
between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and FIRST
TRANSIT INC., a Delaware corporation, hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, on June 16, 2015, the City entered into an Agreement with Contractor for Transit Operations
& Maintenance services; and
WHEREAS, on April 5, 2018, the parties made and entered into Amendment to Agreement No.1; and
WHEREAS, the City desires to amend the scope of services to reflect the pass-thru purchase of an
Automatic Vehicle Location System; and
WHEREAS, the Contractor has submitted a proposal for this purpose that is acceptable to the City.
NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter
contained, the parties hereto agree as follows:
1. Contractor shall be responsible for providing an Automatic Vehicle Locator System (“AVL
System”). Contractor’s scope of services and related compensation is hereby amended to include the equipment,
software and services as set forth in Exhibit A attached hereto. Contractor agrees to maintain the AVL System in
good working order at all times. Upon termination of the 2015 Agreement for Transit Operations and Maintenance
services, the AVL System, and any service agreements or licenses or software, shall automatically become the sole
property of the City. Contractor shall execute and agreements and otherwise cooperate to transfer title to the AVLS
System and any supporting software, service agreement or licenses to City.
2. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first written above.
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CITY OF SAN LUIS OBISPO: CONTRACTOR:
By: __________________________________ By: ____________________________________
City Manager, Derek Johnson Senior Vice President, Fadi Chakbazof
City of San Luis Obispo First Transit Inc.
APPROVED AS TO FORM:
By: _____________________________________
City Attorney, Christine Dietrick
City of San Luis Obispo
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Department Name: Utilities
Cost Center: 6002
For Agenda of: March 3, 2020
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared by: Dave Hix, Utilities Deputy Director - Wastewater
Jennifer Metz, Utilities Projects Manager
SUBJECT: CALLE JOAQUIN LIFT STATION REPLACEMENT PROJECT, SPEC. NO.
91118 - EASEMENT PURCHASE
RECOMMENDATION
1. Approve an Easement Deed for the purchase of real property from G6 Hospitality Property,
LLC for construction of the Calle Joaquin Lift Station Replacement Project and authorize the
Mayor to execute the Deed.
2. Approve a Right of Way Agreement with G6 Hospitality Property, LLC in the amount of
$95,000 and authorize the Mayor to execute the Agreement.
3. Authorize the City Manager to execute any necessary supplemental escrow paperwork to
complete the transaction.
DISCUSSION
Background
Construction of the Calle Joaquin Lift Station Replacement Project (Project) will extend from east
of US 101, under San Luis Obispo Creek, crossing US 101, to a site adjacent to the existing lift
station west of US 101 along Calle Joaquin. The Project involves the purchase of an easement from
G6 Hospitality Property, LLC (G6) for the siting of the new lift station adjacent to the existing lift
station (1,208 square feet), as well as obtaining a temporary construction easement (1,840 square
feet). The legal description of the easements is included in Attachment A. G6 has agreed to $95,000
compensation, as described in Attachment B. This
compensation includes the cost to restore the property
(landscaping and irrigation system) impacted by
construction.
History of Calle Joaquin Lift Station
The Calle Joaquin Lift Station is located south of Los
Osos Valley Road. It was put into service in 1967
and serves properties in the southern portion of the
City on both the east and west sides of US 101. After
more than 50 years in service, the Lift Station is well
beyond its useful life. Additionally, in 2011, it was
identified that the siphon was partially exposed
Calle Joaquin Lift Station
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resulting from a shift in the alignment of San Luis Obispo Creek and corrosion of the concrete
encasement. There is a high-level of risk associated with the failure of the siphon as it would
result in the discharge of wastewater to the Creek. The Project’s design, easement acquisition,
and environmental permitting process has been challenging due to the limited site area available
and the constraints associated with crossing San Luis Obispo Creek and the freeway. The City
hired the design team from AECOM and Hamner, Jewell & Associates to assist with property
acquisition for the Project in 2011.
Previous Council or Advisory Body Actions
The City Council approved a Mitigated Negative Declaration of Environmental Impact for the
Project in 2016 (Resolution 10718). Project design was all but complete and the City had applied
for necessary environmental permits. In 2018, staff from the National Marine Fisheries Service
(NMFS) requested the existing siphon be removed from the Creek which had not been proposed
by the City as it seemed to provide desirable habitat conditions. In March of 2019, the City
Council approved contract amendments for engineering design services and environmental
permitting services to address this change, and for property acquisition services due to the
prolonged easement negotiation with G6. Since that time, staff has been working to update the
Project’s CEQA document and other environmental permitting for the Project. In addition to
NMFS, environmental permitting is required from a number of environmental agencies including
U.S. Fish and Wildlife Service, California Department of Fish and Wildlife, Regional Water
Quality Control Board, and the Army Corps of Engineers.
Policy Context
On May 5, 2009, the City Council adopted the City’s first Sewer System Management Plan
(SSMP). The SSMP documents a comprehensive program for sewer system operation,
maintenance and repair as required by the State Water Resources Control Board’s Statewide
General Waste Discharge Requirements. On May 7, 2019, the City Council approved Resolution
11006 to update the SSMP.
Public Outreach
The Project is identified as a priority project in the Financial Plan Capital Improvement Plan
which includes significant opportunity for public comment. Also, a 30-day public review period
was conducted for the Project’s Mitigated Negative Declaration and no comments were received.
When the Project proceeds to construction, updates will be provided on the City’s Public Works
Department website at: www.slocity.org/government/department-directory/public-
works/construction-and-traffic-updates
CONCURRENCES
Community Development Department concurs with the environmental review findings.
ENVIRONMENTAL REVIEW
The City Council approved a Mitigated Negative Declaration of Environmental Impact for the
Project in 2016 (Resolution 10718).
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FISCAL IMPACT
Budgeted: Yes Budget Year: FY 19-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY
Available Budget
Annualized
On-going Cost Total Project Cost1
General Fund
State
Federal
Fees
Other: Sewer Fund $2,355,973.70 02 $95,000
Total $2,355,973.70 0 $95,000
The Project is funded by the City’s Sewer Fund. Approval of the recommended agreements with
G6 for the Project will cost a total of $95,000. Remaining easement purchases necessary for the
Project are the subject of separate reports. Sufficient budget is available to complete acquisition of
the required easements for the Project.
The Project budget has an available balance of $2,355,953.70 to accommodate the eas ement
purchase.
ALTERNATIVE
Do not approve the documents necessary to complete the transaction . The Council may decide
not to approve the documents necessary to complete the transaction with G6. Staff does not
recommend this option, as the property is needed for the replacement of the Calle Joaquin Lift
Station.
Attachments:
a - Easement Deed
b - Right of Way Agreement
1 Project cost identified here is for the proposed easement purchase from G6 Hospitality Property, LLC. The
engineer’s cost opinion for construction will be available prior to advertisement of the Project for construction bids.
2 Existing staffing, maintenance, equipment, and energy cost for the Calle Joaquin Lift Station is approximately
$15,000 from the Sewer Fund. This annual maintenance cost is not expected to increase with the replacement of the
lift station.
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Department Name: Utilities
Cost Center: 6002
For Agenda of: March 3, 2020
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: David Hix, Deputy Director - Wastewater
Chris Lehman, WRRF Supervisor
SUBJECT: AUTHORIZE APPLICATION FOR THE CALIFORNIA RESILIENCY
CHALLENGE GRANT
RECOMMENDATIONS
1. Approve of Utility Staff’s preparation and submission of a grant application (Attachment A)
for the California Resiliency Challenge Grant Project; and
2. Authorize the City Manager, or their designee, to execute the required grant application
documentation and, should the grant funds be awarded, make the necessary budget
adjustments.
DISCUSSION
Background
As a result of proximity to fire zones and Public Safety Power Shutoff (PSPS) events, the City of
San Luis Obispo’s (City) critical infrastructure may be subject to extended power outages.
Threats to continued operation may also come from extreme weather events such as flooding.
The City seeks to incorporate further resiliency into its critical infrastructure to withstand current
and future climate-related disruptions. The City has also adopted an aggressive Climate Action
Plan with a community goal of carbon neutrality by 2035 which will require thoughtful and
innovative planning to determine the best ways to achieve this objective.
Feasibility Study of a Zero-Net-Carbon Microgrid
To assist in meeting these challenges and further the resiliency of its Water Resource Recovery
Facility (which provides critical wastewater treatment and water recycling services to the
community), staff is seeking a California Resiliency Challenge (CRC) grant to fund the study of
the technical and economic feasibility of a zero-net-carbon microgrid at the City’s Water
Resource Recovery Facility (WRRF). Microgrids differentiate themselves from a traditional grid
configuration in that they allow the customer to disconnect or “island” the facility from PG&E in
the event of an emergency to seamlessly sustain internal operations.
Currently undergoing a major, three and a half year-long facility renovation (SLO Water Plus), a
microgrid could enable the WRRF to generate a significant portion of the around-the-clock
power needed to operate the facility, increase resiliency during power outages, and dramatically
reduce its carbon footprint. This study will analyze a biogas-fueled fuel cell, paired with solar
and energy storage. Emissions generated by the fuel cell are limited to carbon dioxide and water.
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The carbon in the carbon dioxide is from terrestrial biomass and does not result in any net carbon
addition to the environment. This allows for a substantial reduction in greenhouse gas (GHG)
emissions over the biogas-fueled internal combustion engine currently installed at the WRRF. It
may also allow the WRRF to minimize use of a carbon-intensive diesel-powered backup
generator. Increased operational resiliency, reduced carbon footprint, and the potential to offset
facility operational costs make the fuel cell microgrid system an attractive solution for the City to
explore through this feasibility study.
This funded study would be a collaboration with the Office of Sustainability, the Utilities
Department, and a contracted engineering firm. While the Utilities Department’s WRRF staff
will take the lead in data collection and coordination with the contractor, they will be seeking
collaborative input and guidance from the Office of Sustainability to ensure the direction of the
study is in alignment with the City’s Climate Action Plan. If a grant is awarded to the City, staff
would return to Council for approval and to execute the grant agreement. The feasibility study
would take approximately 12 months to complete. The feasibility study would provide the
technical and economic analysis necessary to fast track a project for design and construction, and
secure significantly enhanced Pacific Gas & Electric (PG&E) Self Generation Incentive Program
(SGIP) biogas resiliency incentives, as well as new resiliency financing available through
Monterey Bay Community Power’s “Uninterruptable Power Supply” fund. The proposed project
could potentially be incorporated into a larger City project or be constructed at a later date
dependent on any scheduling conflicts and requirements of selected funding mechanisms.
Staff discovered this opportunity late in the process. A grant application was due on February 7,
2020 and has been submitted by staff as the funding for this work effort is consistent with Major
City Goals and current work programs The application can be withdrawn should Council determine
that it does not want to compete for this opportunity..
Policy Context
The project is consistent with the City’s Major Goals of fiscal sustainability and responsibility,
and climate action.
Public Outreach
The City has obtained letters of support for this grant application from various community
climate action groups including the SLO Climate Coalition and Monterey Bay Community
Power. Staff have also involved various California Polytechnic State University faculty in early
project brainstorming discussions.
CONCURRENCES
Community Development concurs with the environmental review findings.
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ENVIRONMENTAL REVIEW
Preparation of the grant application and adoption of the proposed Resolution 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. Furthermore, as the grant application is a feasibility or planning study, it qualifies for
statutory exemption 15262.
FISCAL IMPACT
Budgeted: N/A Budget Year: FY 19-20
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
Total 0 0
The proposed grant amount for the Feasibility Study is $200,000. There is no additional fiscal
impact associated with the recommended action to prepare and submit a grant application. There
is no local match portion required for this grant. Grant funding would allow the City to award
contracted services to perform the feasibility study. If awarded, $200,000 is sufficient to perform
the study, and will not require augmentation from the Sewer fund.
ALTERNATIVE
Deny the authorization to prepare and submit the grant application. The Council could
decide to require staff to withdraw the grant application. Staff does not recommend this option,
as there is a favorable likelihood that the City will secure this grant.
Attachments:
a - California Resiliency Challenge Grant Application - San Luis Obispo
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California Resiliency Challenge
Powering Zero Net Carbon Resiliency at San Luis Obispo’s
Water Resource Recovery Facility (WRRF)
Proposed Feasibility Study for a Clean Microgrid to Enable Continuous Facility
Operation, Emergency Vehicle EV Charging, and Ensure Community Health and
Safety in an Extended Power Outage
SUBMITTED BY
City of San Luis Obispo
With: Alternative Energy Systems Consulting, Inc. (AESC)
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Alternative Energy Systems Consulting, Inc. (AESC), our technical partner on this grant
application, will conduct the feasibility study and serve as project manager for this initiative.
AESC brings 25 years of energy expertise and deep subject matter expertise in wastewater
treatment systems, distributed energy resources, the Self Generation Incentive Program, and
resiliency with the following programmatic expertise:
•Wastewater Treatment: AESC currently supports the City's WRRF on facility energy
optimization and emerging technologies evaluations, funded through PG&E' s energy
efficiency programs, and Southern California Edison (SCE) emerging technologies program.
They are working with more than 25 wastewater treatment facilities throughout California on
energy management.
•SGIP Administration and DER Expertise: Since 2003, AESC has administered the Self
Generation Incentive Program (SGIP) on behalf of PG&E, SCE and SoCalGas. They have
been the lead statewide technical and policy advisor and have conducted technical and
economic studies on microgrids, energy storage technologies, and fuel cells. AESC performs
thousands of SGIP and CA Solar Initiative application reviews and inspections each year.
•Resiliency Studies: AESC is currently conducting power resiliency studies for customers
including the State of California and community college districts, supported by their affiliate
company EVA Green Power (EGP), a licensed electrical contractor focused on turnkey
Distributed Energy Resources (DER) implementation. EGP will provide an important role in
the high-level design, sizing and specification of equipment.
For over a decade, the City's WRRF has fostered research, development, and internship
programs in collaboration with California Polytechnic University and Cuesta College to train
operators and engineers of the future and redefine industry standards of wastewater treatment.
We plan to leverage this regional partnership in our resiliency action plan. In 2015, San Luis
Obispo became the first city in the State to implement a design-build energy efficiency program
sponsored by PG&E known as Sustainable Solutions Turnkey (SST). This model has since been
replicated in numerous agencies across the State, an example of the City's dedication to leading
by example.
As recognized municipal leaders in urgently addressing climate action and resiliency, the City is
excited to be first in California to demonstrate the feasibility of a zero-net-carbon microgrid,
base loaded with biogas from our Water Resource Recovery Facility.
Aaron Floyd
Utilities Director
City of San Luis Obispo
afloyd@slocity.org
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TABLE OF CONTENTS
2 – PROJECT SUMMARY DESCRIPTION .................................................................................. 2
3 – GRANT AMOUNT REQUESTED ........................................................................................... 3
4 – RESILIENCE CHALLENGES THE PROJECT ADDRESSES ................................................ 3
5 – OTHER PROJECT ELIGIBILITY CRITERIA ........................................................................... 4
6 – STATE LAW REQUIREMENTS ............................................................................................ 10
7 – SCOPE OF WORK ............................................................................................................... 11
Task 1: Project Kickoff and On-Site Evaluation .......................................................................... 11
Task 2: Biogas Augmentation Analysis ....................................................................................... 12
Task 3: Low Power Operating Mode Analysis and Standard Operating Procedures (SOP) ....... 13
Task 4: Initial Resiliency Scenarios Analysis .............................................................................. 13
Task 5: Detailed Resiliency Feasibility Study ............................................................................. 14
Task 6: CRC Case Study ............................................................................................................ 15
8 – PROJECT TIMELINE ............................................................................................................ 16
9 – LOCAL SUPPORT AND APPROVALS ................................................................................ 17
10 – OTHER SOURCES OF FUNDS ......................................................................................... 17
11 – USE OF FUNDS ................................................................................................................. 18
12 – DELIVERABLES ................................................................................................................. 18
Deliverable 1 (Task 1): Kickoff Notes .......................................................................................... 18
Deliverable 2 (Task 2): Biogas Augmentation Analysis Report .................................................. 18
Deliverable 3 (Task 3): Low Power Operating Mode Analysis Report ........................................ 19
Deliverable 4 (Task 3): Standard Operating Procedures (SOP) ................................................. 19
Deliverable 5 (Task 4): Resiliency Scenario Analysis Presentation ............................................ 19
Deliverable 6 (Task 5). Detailed Resiliency Feasibility Study Report ......................................... 19
Deliverable 7 (Task 6): CRC Case Study ................................................................................... 20
13 – ACCESS TO SITE .............................................................................................................. 21
APPENDIX A – LETTERS OF SUPPORT .................................................................................. 21
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2 – PROJECT SUMMARY DESCRIPTION
The City of San Luis Obispo (the City) is seeking California Resiliency Challenge (CRC)
funding to study the technical and economic feasibility of an unprecedented, zero-net-carbon
microgrid at the City’s Water Resource Recovery Facility (WRRF), which provides critical
wastewater treatment and water recycling for the community.
Currently undergoing a major, three-
year facility renovation (SLO Water
Plus), the proposed microgrid will
enable the new facility to provide
around-the-clock services with a
dramatically reduced carbon
footprint. Powered by a clean, 100%
biogas-fueled Bloom Energy fuel
cell and paired with solar and
storage, the grid would be sized to
provide uninterrupted operations and
electric vehicle charging for the City
and other government emergency
vehicles during a planned or
unplanned extended power outage. It
would also enable the City to avoid the use of a carbon-intensive, 1MW diesel-powered backup
generator.
The City and its municipal infrastructure are vulnerable to extended power outages as a result of
proximity to Tier 2 and 3 fire zones and Public Safety Power Shutoff (PSPS) events. Threats to
continued operation also come from fire, flood and drought. The City is committed to carbon
neutrality by 2035 and to urgent action that will reinforce its infrastructure to withstand current
and future climate-related disruption.
The City is the lead agency and would coordinate internal efforts between the City’s Transit
Division, Office of Sustainability, Utilities Department, SLO Climate Coalition, Monterey Bay
Community Power, Bloom Energy, and other partners. The Feasibility Study would commence
in the spring of 2020, or upon notice to proceed, and would last approximately 30 weeks.
The proposed project would be incorporated into a larger city project; The City is in the process
of a $140 million project upgrade to their entire treatment process between 2019 and 2023
(“SLO Water Plus”), to rehabilitate critical infrastructure, expand treatment plant capacity, and
reinforce the Facility as a community asset through odor control and expanded educational
programming. The drivers of SLO Water Plus include complying with updated National
Pollutant Discharge Elimination System (NPDES) permit requirements, modernizing equipment
The City’s WRRF Team
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and processes, and addressing climate change impacts. The City is building additional capacity
to handle new peak wet weather flows from extreme weather events, maximizing flexibility in
operations to handle climate variability, and maximizing recycled water production in line with
statewide goals for expanded recycled water use. Equipment for SLO Water Plus was carefully
selected to maximize compatibility with future potable reuse.
Without a parallel project to SLO Water Plus in the form of the proposed microgrid, the City will
not be able to meet its aggressive carbon neutrality goals. With the electrification of the City’s
entire vehicle fleet, a lack of a robust power source in the event of a power outage could leave
the community vulnerable. The proposed Feasibility Study would enable the City to overcome
these challenges and realize its important goals.
3 – GRANT AMOUNT REQUESTED
A grant of $181,023 is requested to cover AESC’s costs related to completion of the Feasibility
Study deliverables, and the City’s labor and direct costs required to complete the study.
4 – RESILIENCE CHALLENGES THE PROJECT ADDRESSES
The City’s SLO Water Plus efforts mitigates and addresses a myriad of regional climate
resiliency and adaptation needs including safely handling peak wet weather flows and producing
recycled water for use in landscape irrigation, dust mitigation, agriculture and future potable
reuse. Water from the facility also protects and enhances San Luis Obispo Creek, a habitat for
multiple endangered species.
The City’s proposal is focused not only on
the ability to keep this critical
infrastructure operational, compliant, safe
and sustainable in the event of a power
grid failure, but also on ensuring that daily
operations don’t exacerbate the climate
emergency further. Maintaining operations
during fire, flood and drought is critical;
reducing the infrastructure’s carbon
footprint is equally so. The City faces
multiple resiliency challenges:
Vulnerability to Fire – The City and the
WRRF are vulnerable to fire and
unplanned and planned power outages.
The City’s Tier 2 and 3 Fire Threat Zones
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The City territory includes areas identified as both Tier 2 and Tier 3 fire zones according to the
CPUC’s Fire Threat Map.
Vulnerability to Drought – SLO Water Plus was designed to enhance the City’s water portfolio
and ensure drought resiliency. By 2022, the infrastrucure will be in place for the City to consider
potable reuse while simultaneously delivering high quality water to landscape and agricultural
irrigation, air quality control measures, aid in regional efforts to secure a sustainabile
groundwater basin and provide habitat for the endangered steelhead trout and red-legged frog. A
clean-energy micro-grid will allow the City to supply that water with little-to-no embodied
energy.
Vulnerability to Flooding – The WRRF is
situated at the lowest elevation in the City,
by design. This presents unique challenges
to the continued operation of the facility
during extreme weather events like floods.
Without an island-able grid providing
sustained power, flood waters can overtake
the low-lying plant and sweep raw sewage
into protected habitats. There is a homeless
shelter directly across the street that is
equally susceptible to flooding. In an
emergency and power outage, the WRRF’s
grid can provide essential vehicle charging
stations if evacuations become necessary.
Providing Community Power and Vehicle Charging – As part of the City’s climate action
roadmap, there is strong momentum underway to electrify the City’s municipal fleet by 2040,
which would include public transportation, police, fire, and essential public works and utilities
workers. This plan must come with parallel solutions to ensure safe and reliable vehicle charging
when the grid goes down in an emergency. The WRRF is a uniquely situated to provide this
service due to the constant source of baseload in the form of biogas energy generation potential.
5 – OTHER PROJECT ELIGIBILITY CRITERIA
5.a – Is the resilience planning effort integrated with or can fast track project
implementation/ delivery?
The proposed power resiliency feasibility study and resulting project will be integrated as a part
of the SLO Water Plus project, which is scheduled for completion by 2023. CRC funding for this
Flood Zones Surrounding WWRF
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feasibility study will accelerate the City’s ability to scope, size, finance and procure the project
as quickly as possible, including the ability to secure incentives, determine terms and conditions
for Power Purchase Agreement (PPA) financing, and procure engineering feasibility services to
complete the microgrid project in coordination with the Water Plus project. Fast-tracking this
microgrid project through this grant opportunity will ensure that committed construction includes
this forward-looking climate resiliency project.
5.b – Does the project enjoy community support from elected officials, neighborhood
associations, business and civil leadership organizations, environmental advocacy and
environmental justice groups, etc.?
The potential measures proposed in the grant application, including exploration of a fuel cell,
PV, and storage, are in alignment with Council’s carbon neutrality target for City operations (by
2030), as well as the City’s 2019-21 Major Goals of fiscal sustainability and climate action
(which includes greenhouse gas emissions reductions and community resilience). The Climate
Action Plan has a stated goal of pursuing renewable energy projects and considering adaptation
strategies to reduce energy transmission requirements to improve energy security for the City.
In addition, the Transportation section of
the Climate Action Plan calls for vehicle
electrification strategies, including an
implementation strategy to investigate local
and federal funding for transit upgrade
projects. As the City strives to model
municipal sustainability regionally, the
City has worked to incorporate these goals
and objectives into the operating charters
of its departments, as well as its major
capital projects and initiatives. The result is
that city planning goes beyond simple first
cost financial metrics to consider
economic, environmental and social
impacts of design decisions.
The proposed feasibility study supports carbon neutrality goals, clean energy goals, vehicle
electrification goals, and potentially organic diversion goals. It also achieves many of the
WWRF goals below which include:
• Economic goals: Optimizing capital investment; maximizing value for ratepayer investment;
incorporating flexibility and scalability to adapt to future conditions; optimizing application
of appropriate technology.
WWRF Fostering Community
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• Environmental goals: Maximizing sustainable resource recovery; incorporating
sustainability practices in planning, design, construction and operation.
• Social goals: Creating and sustaining diverse partnerships that add value to the community;
providing an interpretive center and dedicated features to engage and educate the community;
being a good neighbor; engendering the trust of project stakeholders.
Attached are letters of support from the City’s Utilities Director, Sustainability Manager, a local
501(c)(3), the SLO Climate Coalition, and the Monterrey Bay Community Power CCA.
5.c – Will the project help protect critical infrastructure?
The core goal of this project is to protect critical infrastructure and enabling continuous
operations of the WRRF. Maintaining WRRF operations is critical to ensure public health and
safety. The community’s public health and safety can be seriously compromised by untreated
waste discharges, odors and toxic fumes that can result from interrupted plant operations.
Furthermore, the plant’s current backup solution, a 1MW diesel generator, causes air pollutants
which when operated negatively impact local air quality and exacerbate health and safety
impacts on vulnerable populations. The diesel generator also does not align with the city’s
aggressive climate goals for municipal climate neutrality by 2030. In addition, the project
enables the planned municipal electric vehicle charging infrastructure.
5.d – Will the project benefit disadvantaged or vulnerable communities, and will it help
build or support leadership in those communities?
The proposed project will benefit the entire community of San Luis Obispo, including low
income and disadvantaged populations. By developing a source of clean, reliable, and free
power, the City is insulating key services and ratepayers from fluctuating energy costs.
The proposed microgrid would support municipal operations in an emergency by providing
community power and vehicle charging, enabling transport of low income, elderly, unhoused and
other disadvantaged community members who may lack access to personal transportation in an
emergency. For example, directly
across the street from the WRRF
is the Community Action
Partnership of San Luis Obispo
Homeless Services Center,
providing overnight shelter to
families and individuals in need,
transition support services, and
other emergency services, such
as warming centers and mail or
phone services.
SLO Transit Buses
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Finally, the plan also supports the SLO Regional Transportation Plan. Because many residents of
the region are students and rely on public transportation daily, the City is planning for a regional
transportation hub and connection with local communities. The proposed project would provide
a source of resilient power for transportation in a regionwide outage.
5.e – Does the project achieve multiple benefits across sectors (e.g., public health and safety
is enhanced while also improving environmental conditions)?
The proposed project will ensure operational continuity to support the following public health
and safety and environmental considerations:
• Wet Weather Flows: Ability to treat peak wet weather flows in a severe wet weather event
and avoid overflows which have negative health and safety impacts on the population.
• Recycled Water: Ability to continue to produce recycled water for the following
environmental benefits: 1) municipal irrigation, 2) mitigation of construction dust in the City
which itself has negative health and safety impacts on vulnerable populations; 3) protection
of the ecology of the watershed and the San Luis Obispo Creek, which helps support the
environmental health of a threatened steelhead trout population.
• Air Quality: Improved air quality and reduced GHG due to reduced emissions resulting from
replacing the CHP with a fuel cell and minimizing operations of the emergency standby
diesel generator.
• EV Fleet Charging and Transportation Access to Disadvantaged Communities (DACs):
A power resilient electrified bus fleet will enable evacuating people in an emergency who do
not have access to cars, including the student population, and adjacent homeless shelter.
5.f – Can the project leverage other sources of private, local, state or federal funding?
The City’s climate action and resiliency plan sets aggressive goals to stimulate incremental
sources of funding from grants, programs, incentives and special purpose financing vehicles. To
date, the City has been aggressive and creative in leveraging many funding sources to support the
redevelopment of the WRRF, including energy efficiency and emerging technology funds from
PG&E and SCE, and pioneering programs like PG&E’s Sustainable Solutions Turnkey program.
For the proposed microgrid project, the feasibility study will help evaluate viable sources of
private, local, state and federal funding including:
• Bloom Energy Power Purchase Agreement (PPA): The City is evaluating a proposal from
Bloom Energy for a 20-year PPA to finance a 450kW grid parallel fuel cell to replace our
existing biogas internal combustion (IC) engine. As part of the feasibility study, AESC will
review the inputs and assumptions of the PPA, which estimates over $6M in cumulative
savings for the City when considering avoided IC engine operational and maintenance
expenses, SGIP incentives, and other tax credits.
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• SGIP incentive adders: As of 1/16/20, the CPUC adopted a renewable generation resiliency
adder resulting in an incentive of $4.50/W for renewable generation projects intended for
resiliency purposes, with a max of $5 million per project. At this rate, the biogas fuel cell will
be eligible to receive an estimated $2,025,000 in SGIP incentives. Additionally, AESC will
incorporate available SGIP incentives for the proposed battery storage aspect of the
microgrid.
• Federal Tax Credits: The City intends to leverage the Federal Investment Tax Credit for
Renewable projects. The credit will ramp down from 26% in 2020 to 22% in 2021, and then
will be eliminated.
• Monterrey Bay Community Power (MBCP) resiliency fund: As of December 2019, the
Policy Board of MBCP established a $25M Uninterruptible Power Supply Fund to provide a
revolving financing pool for critical infrastructure facility resiliency investments in order to
alleviate difficulties posed on sectors such as medical, police, fire and emergency operations
centers during grid interruptions. A letter of support from MBCP for the City’s proposed
project is attached.
• Low Interest Bridging Loans: iBank low interest loans may also be available to allow the
City to bridge financing requirements.
• Grid Benefits Revenue and Other Cost Savings: AESC will incorporate energy efficiency
recommendations and available utility incentives identified through parallel activities funded
through PG&E and SCE. AESC will also evaluate opportunities for the WRRF to generate
additional revenue or savings through load shifting and participating in demand response or
California ISO wholesale ancillary services markets.
5.g – Can the project be scaled to provide increased resilience in the future?
The City is planning for 1% growth per year through 2045 and a population increase of 10,000
residents over the next 15 years. As plant capacity expands and biogas production increases in
the future, the city expects to be able to add modular fuel cells to the microgrid, scaling the
system up to be able to support more community assets and critical resources.
5.h – Can the project can be replicated in other geographies?
A successful demonstration of a biogas fuel cell and microgrid at a municipal wastewater
treatment facility, supported by the proposed feasibility study and resulting case study, will
enable the proposed project to be highly replicable for other municipalities in California
balancing resiliency and sustainability goals. Many cities and special districts in the region and
throughout California are dealing with PSPS threats and are in the process of developing
resiliency strategies, specifically for their water and wastewater systems. This project will
provide a blueprint to leverage and scale solutions, and the City is committed and excited to
sharing the findings from this study with other plants across the state.
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Further, biogas-powered fuel cells have not been broadly implemented in the wastewater
industry, due to challenges and costs associated with removing moisture and contaminants from
municipal wastewater biogas. The resulting low-efficiency of these legacy fuel cell installations,
coupled with poor reliability and short life expectancy have produced disappointing results in the
industry. With the Bloom Energy fuel cell and biogas clean-up module the City WRRF will
pioneer to demonstrate viability in a microgrid installation. This feasibility study will provide the
roadmap for other cities and wastewater plants with biogas production to improve resiliency and
reduce emissions from biogas to energy applications.
The City is an ideal place for the demonstration to occur because of the City’s decades of
leadership on climate action and resiliency, and its commitment to education and sharing best
practices. The City’s WRRF Program Charter guiding principles commit to knowledge transfer,
embracing innovation and creativity, understanding the “why”, and expanding the possible.
For decades, the City has actively engaged with its
community and regional stakeholder groups to work on
both regional plans, and to support peer to peer
learning through networks. The City is actively
involved in several sustainability related networking
organizations including the Urban Sustainability
Directors’ Network, Green Cities California, the
Central Coast Climate Coalition, and the State Energy
Efficiency Collaborative. These networks put city staff
in close communication with senior staff throughout
the state and nation and allow for information sharing
and knowledge transfer.
Furthermore, WRRF routinely hosts regional training
workshops and site tours, and creates educational
materials to support scaling of successful projects. As
part of an internship program, the City’s WRRF trains
operators throughout the Central Coast/State of CA.
With a motto of “What’s learned here, leaves here”, the City has built a broad network of current
and future industry professionals, including operators and engineers, and has significant regional
influence on other organizations. The City has trained over 150 operators and water quality lab
analysts and has had over 1600 university students participate in industry research onsite.
5.i – Does the project involve collaboration with neighboring jurisdictions?
Although the feasibility/planning portion of the project does not involve direct collaboration with
any neighboring jurisdictions, the City routinely hosts regional workshops to discuss ideas and
WRRF Internship Participants
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share progress on similar initiatives. There is also an opportunity to directly partner and
collaborate with California Polytechnic University.
5.J – Does the project involve collaboration with the private sector?
Private sector collaborators proposed on this project include Bloom Energy, who would provide
the fuel cell and potential PPA financing, AESC, and PG&E and SCE; Through AESC contracts
with the utilities, PG&E and SCE provide technical energy efficiency funding to the City that
support the overall objectives of the feasibility study.
5.k – Does the project incorporate greenhouse gas emission reduction measures?
The project will reduce emissions from replacing the existing CHP biogas generator with the
proposed microgrid system - both while in standard operating mode and under emergency
operating mode. Biogas emissions with the current system are estimated to be 1.345 lb
CO2/kWh. Emissions generated by the fuel cell are limited to carbon dioxide and water and are
expected to be 0.756 lb CO2/kWh.
• Standard operating mode: By replacing the existing CHP biogas generator with the proposed
microgrid system, it is estimated that the project will reduce GHG emissions by 950 metric
tonnes per year in day to day operations.
• Emergency operations mode: WRRF is currently required to operate a 1MW backup diesel
generator. Each day that it operates it generates 15 metric tonnes in carbon dioxide
emissions. Assuming 7 days per year of grid failure, we estimate that the annual GHG
savings from emergency operations to be 52 metric tonnes.
It is important to note that the carbon in the carbon dioxide emitted (whether from the IC Engine
or the fuel cell) is from terrestrial biomass and does not result in any net carbon addition to the
environment and is considered to be carbon neutral.
Finally, the proposed project would support the City’s Transportation Electrification initiative,
which is estimated to reduce municipal GHG by over 1,000 metric tons of carbon dioxide
equivalent (MTCO2e) per year at full implementation. By providing a source of backup EV
charging, the proposed project would help solve important infrastructure barriers.
6 – STATE LAW REQUIREMENTS
The proposed project is not required under state law but supports the City’s climate and
resiliency goals and represents best practice. This project has the potential to eliminate existing
and reduces further APCD equipment and monitoring requirements that center around the current
combined heat and power system.
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7 – SCOPE OF WORK
The proposed Feasibility Study and scope of work for CRC grant funding will consist of six
interdependent tasks with seven discreet client deliverables. Together, the tasks will aim to
answer the following questions:
1) Is it technically and economically feasible to pair onsite solar and battery energy storage
with the proposed biogas fuel cell to provide an island-able microgrid to power normal
plant operations in a power outage?
2) How much additional biogas could be generated on site through bioaugmentation and
improved mixing and heating of waste, which would improve power output?
3) In an emergency, how can plant operations be modified to free up energy to support
critical emergency operations, such EV Charging for the City’s police, fire, ambulance,
and public transportation fleet, which is on the road map to be electrified by 2040? For
day to day operations, how can the plant shift energy loads for operational demand cost
savings or to enable the plant to participate in demand response or California ISO
wholesale ancillary services markets – which would in turn improve proposed project
financials?
4) How can the City maximize utility incentives, leverage available grants and financing,
and best fast track and integrate the microgrid project into the larger WRRF Project
which is to be completed by 2023?
The six specific tasks are described below. Deliverables are detailed in Section 12.
Task Description
1 Project Kick Off and On-Site Evaluation
2 Biogas Augmentation Analysis
3 Low Power Ops Mode Analysis; SOP Development
4 Initial Resiliency Scenarios Analysis
5 Detailed Resiliency Feasibility Study
6 Develop CRC Case Study
TASK 1: PROJECT KICKOFF AND ON-SITE EVALUATION
AESC, the City WRRF team, and selected vendors will meet at the WRRF site to discuss the
project goals, deliverables, schedule, technologies, and feasibility study roles and
responsibilities. The City’s facility personnel will provide AESC with any available electrical
drawings, the existing energy efficiency audit report, utility interval data for the past 12 months,
and key facility operation information and construction plans. The team will discuss planned
load reductions through energy efficiency measures as well as added new construction loads to
support accurate forecasting of future loads.
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The AESC team will perform an onsite evaluation to understand of the plant’s layout,
infrastructure, and operational needs. They will assess the electrical system for feasibility of fuel
cell coupled with battery installation, PV, and back-up generation, and will evaluate potential
locations for siting new generation and storage, as well as electric vehicle charging.
To support the biogas augmentation component of the project, while onsite the team will
investigate WRRF’s current digester gas production systems, including digester control and
heating strategies, sludge feed rates, and any seasonal variations of digester gas quality.
Along with the physical aspects of the plant, during the visit the team will discuss current
operational practices and non-critical loads and begin brainstorming temporary operating
procedures that will allow the plant to function in a low power mode.
TASK 2: BIOGAS AUGMENTATION ANALYSIS
For improved gas production to ensure stable electricity generation from the fuel cell, AESC will
provide operational recommendations. To help maximize the biogas production from the
anaerobic digesters on site, AESC will assess the current gas production system and make
recommendations for bioaugmentation strategies that will result in enhanced gas production. The
City has recently completed a pilot study to evaluate the application of facultative anaerobic
biology that demonstrated increased biogas production. However, for proper sizing of the fuel
cell and other energy producing systems, it is critical that the team understands the reliability and
consistency of biogas production under current and future operating conditions.
AESC will evaluate current digester gas production and capacity of digesters to fully understand
the anticipated consistency of gas production once augmentation begins. AESC will evaluate the
quality and flow of sludge to the digester from all sources through the plant, including primary
sludge and waste activated sludge (WAS). The analysis will include an evaluation of the relative
proportions of primary versus WAS being fed to the digesters under current and future design
scenarios, as these proportions will impact biogas volumetric production as well as quality.
Similarly, AESC will gather historical data to identify any seasonal variations of sludge feed
ratios. Finally, the team will evaluate the consistency and reliability of digester control, mainly
related to digester heating. Once the existing co-generation engines are removed, the waste heat
that was used to heat the digesters will need to be supplemented with waste heat from the boilers,
and consistent operation will be critical to extending the life of the support systems.
AESC will also evaluate vendor recommendations for which consortia of bacteria will be added
to the digesters, including locations, frequency, and amount. The team will review data collected
during the recent pilot study and determine an appropriate sampling and monitoring protocols to
be used once a vendor is selected to optimize and stabilize gas production as primary objectives.
This effort will culminate in a technical memorandum describing the operational requirements of
the digester, and specifications for facultative anaerobic digester optimization including
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infrastructure upgrades related to biogas handling and cleanup, which can be used as part of an
RFP to procure the solution.
TASK 3: LOW POWER OPERATING MODE ANALYSIS AND STANDARD
OPERATING PROCEDURES (SOP)
Based on the findings from recent PG&E energy audits and SCE Emerging Technology pilot
studies that have been completed by AESC, as well as additional automation evaluation and
following conversations, AESC will make recommendations to enable the shift into low power
mode and for an extended period of time. Examples of potential measures include:
• Shunting influent flow to the upgraded equalization basins, which could be retrofitted with
mixing capabilities and oxygen infusion to allow for deferred treatment for up to two days;
• Powering down the welding area, and reducing pressure on plant water system;
• Over-aeration of oxidation basins to reduce power demand on aeration blowers while
maintaining proper dissolved oxygen levels;
• Removing from service one of the grit tanks and RAS pumps based upon the amount of
inflow into the treatment plant;
• Utilize abandoned in place trickling filter tank to flow pace primary effluent.
Additionally, AESC may recommend hardware and software changes, such as installing a
microgrid controller that ties into the plant’s SCADA system and can shed load, ramp up
generation, or strategically deploy energy storage to instigate low power mode. AESC will draft
set of operating requirements for the low power mode and review this with the City.
Over several site visits the operating requirements will be reviewed, refined and finalized.
Working collaboratively with the City’s team, AESC will capture all important changes from
typical operations and create a Low Power Mode Standard Operating Procedures. This document
will outline the changes agreed to through the course of the conversations, including the
necessary technologies, tools and knowledge the staff will need to prepare for and execute a low
or no power event without compromising the performance for the water treatment.
TASK 4: INITIAL RESILIENCY SCENARIOS ANALYSIS
AESC will evaluate the optimum technology sizing and mix for a variety of power outage
scenarios, including for 2, 3, 5 and 7-day outages. The analysis will utilize historical, current and
projected energy use based on WRRF Project upgrades and forecasted loads. AESC will estimate
how many days the plant can stay fully powered and the associated cost effectiveness of each
scenario. For each scenario, AESC will look at capacity, sizing, other grid benefits, and will
perform a detailed economic analysis, described in more detail below:
• Capacity: AESC will perform a power flow analysis to determine the level of electricity that
can flow bi-directionally through the existing infrastructure, and any upgrades that are
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needed to accommodate each resiliency solution. If necessary, spot metering and monitoring
will be used to determine the sizing of the critical loads and any future modifications to
critical equipment will be considered. Other factors of capacity will also be considered
including the power rating of the equipment to handle power surges. Because the system may
be used for non-resiliency program (i.e. demand response) the system will be designed with a
capacity buffer to ensure that the system will always be available for its resiliency response.
• Sizing: AESC will identify the appropriate size and type of solar, storage, vehicle chargers,
and back-up generation required to augment the fuel cell for various power-outage durations.
• Other grid benefits: While resiliency of critical loads will be the main intent when
designing the system, the team will investigate the use of energy storage systems coupled
with onsite generation to provide grid benefits in the form of ancillary services such as
frequency and voltage regulation and spinning and non-spinning reserve.
• Economic Analysis: AESC will prepare an economic analysis for the resiliency solution.
Costs will include potential transformer upgrades and interconnection costs, and benefits will
include revenue generating opportunities (if any) and societal benefits (such as charging
emergency vehicles). The team will account for all available financing and incentives, and
requirements that need to be met to qualify for them. For example, ensuring that the
scenarios are sized and scoped in such a way as to meeting SGIP Biogas adder and
Resiliency adder, which will enable the City to take advantage of a $4.50/W incentive for the
fuel cell system and enhanced storage incentives
AESC will deliver a presentation to the City, outlining the various resiliency options and will
work with the City to identify the outage duration model provides the best benefits, both from a
cost and societal standpoint, for the City.
TASK 5: DETAILED RESILIENCY FEASIBILITY STUDY
Based on the selected solution in Task 3, AESC will develop detailed project deliverables that
can be inserted into an RFP to procure the solution. As described in full in Section 12, this will
include development of: Project schematics and single line drawings; microgrid system sizing
and siting; EV charging requirements for the City’s municipal fleet; required infrastructure
upgrades; warranty and maintenance recommendations; analysis of other benefits; and a detailed
cost analysis.
Based on the selected solution in Task 3, AESC will create a detailed description of the project
for the City, including information that can be inserted into an RFP to procure the solution.
Elements of the scenario analysis will be expanded upon for the final Resiliency Report.
• Charging requirements: EV Fleet Charging Requirements and WRRF Charging Capacity
including: Based on the City’s municipal electrification plans, sizing of the City’s future
municipal EV fleet and charging requirements including for ambulance, fire, police, and
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public bus vehicles; Sizing of typical other state/local/private emergency operations vehicles
that may need to use charging at WRRF in an emergency; evaluation of excess power
generation potential available based on biogas augmentation for charging the City’s
municipal fleet in non-emergency and emergency operations and charging state/local/private
emergency vehicles (e.g, Cal Fire vehicles) during a climate emergency or power outage
• Cost analysis: Assessing cost impacts due to PG&E’s pending time-of-use rates and ways
the solution will offset those costs, along with in-depth review and integration of financing
and incentives, including: Optimal sizing and scoping of fuel cell, solar PV and battery
storage to optimize available utility, state, local and federal incentives and meet the City’s
goals; Verification of eligibility for the PG&E SGIP Biogas adder and Resiliency adder
which would enable the City to take advantage of $4.50/W for the fuel cell system and
enhanced storage incentives; Evaluation of project financing solutions, combined with
available incentives, that best fit the City’s capital plans and capital availability; Evaluation
of system lifecycle costs; and evaluation of potential to capture revenue from demand
response or participation in California ISO wholesale ancillary services markets
TASK 6: CRC CASE STUDY
AESC will collaborate with the City and CRC to develop a case study to document the project,
the feasibility study approach and outcomes, and key lessons learned throughout the process. The
case study will be available on the City’s and AESC’s websites, and the team will identify
opportunities to publish the case study in industry publications and/or present the study at
conferences and meetings of regional networking organizations discussed in proposal section 5h,
or at PG&E sponsored workshops.
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8 – PROJECT TIMELINE
The project timeline below reflects a six-and-a-half-month project, from kick off to CRC Case
Study completion. By the third week in November the City will have a completed Detailed
Resiliency Feasibility Study which they will use to bid out the project. This schedule provides
ample time for the City to complete the project by Q4 2022.
The project will be billed upon completion of task milestones:
Task
Milestone Payment
Timing
Milestone
Payment
Amount
Task 1: Kick Off Meeting and On-Site Evaluation Mid-June, 2020 $16,772
Task 2: Biogas Augmentation Analysis Mid-July, 2020 $35,420
Task 3: Low Power Ops Mode Analysis Mid-August, 2020 $10,038
Task 3: Low Power Mode Standard Operating
Procedures Early December, 2020 $23,422
Task 4: Initial Resiliency Scenarios Analysis Mid-September, 2020 $28,672
Task 5: Detailed Resiliency Feasibility Study Mid-November, 2020 $42,484
Task 6: CRC Case Study Mid-January, 2021 $24,215
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9 – LOCAL SUPPORT AND APPROVALS
The following organizations have provided letters of support, included in the Appendix.
• SLO Climate Coalition
• Public Utilities, City of San Luis Obispo
• Monterey Bay Community Power
10 – OTHER SOURCES OF FUNDS
The CRC grant is not required to release other funding, and no additional funding is required to
fund the proposed Feasibility Study. However, it should be noted that AESC will be able to
incorporate approximately $130,000 investment in parallel energy efficiency and emerging
technologies studies at the facility, funded by Pacific Gas and Electric Company (PG&E) and
Southern California Edison (SCE):
• Large Integrated Audit (LIA) Study: PG&E’s energy efficiency (EE) program is funding
AESC to perform a $30,000 LIA study at the site to identify both EE and demand response
(DR) measures. This study will directly inform potential load reduction and load flexibility
opportunities that can be incorporated into load forecasting and resiliency sizing and
integrated into the Low Power Mode analysis task and Standard Operating Procedures
deliverable.
• Emerging Technologies Study: SCE’s Emerging Technologies program is providing
approximately $100,000 for AESC to study an innovative energy efficiency technology using
micronized oxygen infusion called NanO2. AESC is evaluating the ability of Nan02 to
reduce odor, corrosion, and aeration energy demand while increasing biogas production by
infusing pure oxygen into the City’s high strength sewage. The findings of study will directly
impact the direction of the biogas augmentation work as well as the amount of renewable
energy needed to power the plant.
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11 – USE OF FUNDS
The table below breaks down the costs to produce all described deliverables.
*staff hours reflect approximately 20 hours per week for an WRRF intern.
12 – DELIVERABLES
Deliverable Description
1 (Task 1) Kickoff Notes
2 (Task 2) Biogas Augmentation Analysis Report
3 (Task 3) Low Power Mode Analysis Report;
4 (Task 3) Low Power Mode Standard Operating Procedures (SOP)
5 (Task 4) Resiliency Scenario Analysis Presentation
6 (Task 5) Resiliency Feasibility Study Report
7 (Task 6) Case Study
DELIVERABLE 1 (TASK 1): KICKOFF NOTES
Following the project kickoff at the WRRF facility, AESC will distribute Kickoff Notes
including meeting minutes, documents received and outstanding, and updates to the scope,
schedule, and responsibilities.
DELIVERABLE 2 (TASK 2): BIOGAS AUGMENTATION ANALYSIS REPORT
The biogas augmentation analysis will culminate in a Biogas Augmentation Analysis Report
describing the operational requirements of the digester, and specifications for facultative
anaerobic digester optimization. Specifications will include potential infrastructure upgrades
related to biogas handling and cleanup, which can be used as part of an RFP to procure the
solution.
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DELIVERABLE 3 (TASK 3): LOW POWER OPERATING MODE ANALYSIS
REPORT
AESC will develop a Low Power Mode Operating Analysis Report which will identify
opportunities to reduce power consumption, estimated load reduction potential, and potential
duration of load modification.
DELIVERABLE 4 (TASK 3): STANDARD OPERATING PROCEDURES (SOP)
Following completion of Tasks 4 and 5, AESC will develop a Standard Operating Procedures
(SOP) document based on the level of resiliency selected by the City and based on the final
microgrid design. The SOP will detail agreed upon technologies, tools and knowledge the staff
will need to prepare for and execute a low or no power event without compromising the
performance for the water treatment.
DELIVERABLE 5 (TASK 4): RESILIENCY SCENARIO ANALYSIS
PRESENTATION
AESC will deliver a Resiliency Scenario Analysis Presentation to the City, outlining the various
resiliency options to ensure operational continuity for 2, 3, 5 and 7-day outages. For each
scenario, the presentation will describe required capacity, system sizing, potential grid benefits,
and economic analysis that includes costs, savings, and incentives, AESC will work with the
City to identify the outage duration model that provides the best benefits, both from a cost and
societal standpoint, for the City. The option selected by the City will inform which scenario
AESC will utilize to perform Task 5.
DELIVERABLE 6 (TASK 5). DETAILED RESILIENCY FEASIBILITY STUDY
REPORT
The Resiliency Feasibility Study Report will include detailed outputs that will support the City to
plan, finance, and procure the selected power resiliency option that meets the level of resiliency
as identified in Task 4. The final Detailed Resiliency Feasibility Study Report will include:
• Schematics: single line drawings of the fuel cell integrated into the supplemental systems,
schematics for solar and storage, including high-level drawings. If determined necessary,
professional engineer stamped drawings, ready for construction permit submittal following
the feasibility study; Single Line Diagram, Grounding Diagram, Communication Diagram,
Power Plan, Enlarged Plan, Electrical Calculations, Equipment Details, Electrical Details,
Placard Details. AESC/EGP designs systems in compliance with pertinent safety standards,
UL Standards, NEC, NFPA National Fire Prevention Agency, building codes and shall
conform to IEEE 1547 (including the harmonic specifications)
• Sizing: Energy storage technologies that are most appropriate for the system sizing and
required discharge duration, including the most effective battery charge/discharge profile to
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minimize peak demands during charges and maximizing any ancillary services that may be
introduced in the future; PV sizing to generate the necessary power during sunlight hours;
additional generation, if needed, to supplement power PV, fuel cell and storage during
prolonged outage
• EV Charging requirements: EV Fleet Charging Requirements and WRRF Charging
Capacity including: Based on the City’s municipal electrification plans, sizing of the City’s
future municipal EV fleet and charging requirements including for ambulance, fire, police,
and public bus vehicles; Sizing of typical other state/local/private emergency operations
vehicles that may need to use charging at WRRF in an emergency; evaluation of excess
power generation potential available based on biogas augmentation for charging the City’s
municipal fleet in non-emergency and emergency operations and charging state/local/private
emergency vehicles (e.g, Cal Fire vehicles) during a climate emergency or power outage
• Siting Locations: Identification of the suggested locations for each technology, including if
adequate space exists for each technology; appropriate locations for necessary electrical
connections, and a review of building and electrical plans to provide a high-level schematic
of the solar and energy storage systems and their interconnections with the existing
infrastructure.
• Required Upgrades: Infrastructure upgrades required to make the microgrid a reality.
• Warranty and Maintenance: Suggested warranty conditions and maintenance for any new
technology, including: recommending specific performance, warranty and ongoing
maintenance guarantees; detail which aspects of maintenance will be assumed by the owner
of the system; Failure Mode and Effects Analysis (FMEA) to review reliability of fuel cell
production, sludge pumping systems and digester temperature control.
• Other Benefits: Ways the community will benefit from this solution, including charging the
City’s fleet, especially emergency vehicles; health and safety and greenhouse gas reductions
• Cost analysis: Assessing cost impacts due to PG&E’s pending time-of-use rates and ways
the solution will offset those costs, along with in-depth review and integration of financing
and incentives, including: Optimal sizing and scoping of fuel cell, solar PV and battery
storage to optimize available utility, state, local and federal incentives and meet the City’s
goals; Verification of eligibility for the PG&E SGIP Biogas adder and Resiliency adder
which would enable the City to take advantage of $4.50/W for the fuel cell system and
enhanced storage incentives; Evaluation of project financing solutions, combined with
available incentives, that best fit the City’s capital plans and capital availability; Evaluation
of system lifecycle costs; and evaluation of potential to capture revenue from demand
response or participation in California ISO wholesale ancillary services markets
DELIVERABLE 7 (TASK 6): CRC CASE STUDY
Using the Case Study template provided by CRC, AESC and the City will describe the project
process, completed project outcomes, and lessons learned. The Case Study will include any
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appropriate maps, photos, drawings, and other specifications, along with links to all other
deliverables, and will emphasize the decision points along the way that may help guide other
wastewater facilities as they pursue similar projects. As this project is very replicable at other
plants, the Case Study will be the first resource to aid in duplication of this work.
13 – ACCESS TO SITE
The City owns all access required to implement the study and the proposed project and will not
have any issues concerning access or permissions.
APPENDIX A – LETTERS OF SUPPORT
Please see subsequent pages for letters of support from:
• SLO Climate Coalition
• Public Utilities, City of San Luis Obispo
• Monterey Bay Community Power
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January 29, 2020
To the California Resilience Challenge Grant Board:
San Luis Obispo is going carbon neutral by 2035 and the SLO Climate Coalition has five major initiatives that are
designed to help the City meet that goal. At the top of the list is decarbonizing electricity: in 2019, 13.5% of the
City’s carbon emissions came from electricity use. In 2020, because of the City’s adoption of community choice
aggregation through partnership with Monterey Bay Community Power, that number is now 0%. 100% of the
City’s power comes from clean sources like solar, wind and hydro.
We have been in communication with the City of San Luis Obispo’s Water Resource Recovery Facility (WRRF)
regarding their desire to maximize onsite energy generation. Currently the WRRF produces 25% of its
electricity by burning biogas in a combined heat and power unit. As with all internal combustion engines, the
result of converting gas to power is carbon emissions. Initial exploration of adopting fuel cells, photovoltaics
and batteries have revealed the WRRF could triple its energy generation and significantly reduce its carbon
emissions. The 2020 California Resiliency Challenge Grant will help create a source of renewable energy for a
critical and vulnerable piece of community infrastructure.
We are encouraged by the dedication of the City to reach its ambitious goal and hope you review this
application favorably.
Please let me know if you would like to discuss our endorsement further.
Highest regards,
Eric Veium
Chair
SLO Climate Coalition
eric@carbonfreeslo.org
805.835.3669
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Monterey Bay Community Power 70 Garden Court, Suite 300, Monterey, CA 93940 info@mbcommunitypower.org
City of Arroyo Grande
City of Capitola
City of Carmel by the Sea
City of Carpinteria
City of Del Rey Oaks
City of El Paso De Robles
City of Goleta
City of Gonzales
City of Guadalupe
City of Greenfield
City of Grover Beach
City of Hollister
City of Marina
City of Monterey
County of Monterey
City of Morro Bay
City of Pacific Grove
City of Pismo Beach
City of Salinas
City of Sand City
County of San Benito
City of San Juan Bautista
City of San Luis Obispo
County of Santa Barbara
City of Santa Cruz
County of Santa Cruz
City of Santa Maria
City of Scotts Valley
City of Seaside
City of Soledad
City of Solvang
City of Watsonville
February 5, 2020
Bay Area Council
Attn: Adrian Covert, VP of Public Policy
353 Sacramento St., 10th Floor
San Francisco, CA 94111
RE: California Resilience Challenge – Support for the City of San Luis Obispo Water Resource
Recovery Facility (WRRF) Proposal
Dear CRC Advisory Committee and Staff,
The City of San Luis Obispo was unanimously approved by Monterey Bay Community Power’s
(MBCP) Policy Board as a member agency back on December 5, 2018 and their leadership
jump started a campaign to help unify the Central Coast through MBCP as the regional
Community Choice Energy agency. Communities across the five counties of Santa Cruz, San
Benito, Monterey, San Luis Obispo and Santa Barbara are and will soon benefit from MBCP’s
carbon-free power mix, cost savings, and energy programs.
MBCP recognizes the need to support greater energy resiliency across its growing service
area, considering impacts from climate change and potential Public Safety Power Shut-off
events. In December the Policy Board established a $25M Uninterruptible Power Supply Fund
to provide financing for critical infrastructure facility resiliency investments. This program
should alleviate difficulties posed on sectors such as medical, police, fire and emergency
operations centers during grid interruptions.
The City of San Luis Obispo’s decision to submit an application to enhance and build out
greater onsite energy through multiple renewable energy sources for their WRRF is an
innovative and resilient model to ensure this facility can operate in light of the Public Safety
Power Shutoff (PSPS) or other events that impact grid reliability. It is in this cooperative spirit
MBCP supports the City of San Luis Obispo’s proposal for funding energy resiliency at their
WRRF.
Sincerely,
Tom Habashi
CEO
Monterey Bay Community Power Authority
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Department Name: Utilities
Cost Center: 6105
For Agenda of: March 3, 2020
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Jennifer Thompson, Utilities Business Manager
SUBJECT: AWARD CONTRACT TO ALEXANDER’S CONTRACT SERVICES FOR
METER READING SERVICES
RECOMMENDATION
Award a three-year contract to Alexander’s Contract Services for contract utilities meter reading
in an amount not to exceed $195,000 per year.
DISCUSSION
Background
On December 3, 2019 the City Council authorized staff to advertise a Request for Proposals
(RFP) for contract meter reading (Attachment A) and to authorize the City Manager to execute
an agreement if the selected proposal is less than or equal to $182,000.
Three proposals were received and evaluated. Only one proposal, from Alexander’s Contract
Services (Alexander’s), was determined to be responsive to all required elements of the RFP. As
the total cost of Alexander’s contract exceeds the previously authorized $182,000, staff is
returning to the City Council to award the contract.
Previous Council or Advisory Body Action
On December 3, 2019 the City Council authorized staff to advertise an RFP for contract meter
reading.
Policy Context
The Fiscal Sustainability and Responsibility Major City Goal work plan includes developing
efforts to increase operational efficiencies. Contract meter reading has proven to increase
operational efficiencies.
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.
CONCURRENCE
The Finance Department concurs with this recommendation.
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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
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
Sewer Fund $136,066 $195,000
State
Federal
Fees
Other:
Total $195,000
Alexander’s charges $1.01 per meter read plus $0.25 for each certified -read photograph. Meter
reads are photographed when the water consumption falls outside of a normal range based upon
pre-specified parameters. There are currently approximately 15,800 water meters in the City
resulting in monthly water meter reads costing $15,958 per month, or $191,496 per year.
Alexander’s certifies approximately 400 meter reads per month which will cost $100 per month,
or $1,200 per year. The “not-to-exceed” contract price is $195,000 to allow for new meters that
will be installed during the three-year term of the contract. The additional cost in the current
fiscal year can be covered by the Sewer Fund budget.
Contract meter reading benefits both the Water and Sewer funds. Currently, t hough, the entire
Utility Billing Program budget, including contract meter reading, is located within the Sewer
Fund. This is offset by budget in the Water Distribution Program, a Water Fund Program. Water
Distribution pays for two Water Distribution Operators whose responsibilities include
maintaining water meters; all of the water meter purchases; and other operating expenditures. At
the end of each year these expenditures are reconciled to ensure that the Water and Sewer Funds
are each contributing equally to water meter reading and maintenance. Staff will be modifying
these budgets with the Financial Plan Supplement to more accurately reflect each Funds
responsibility for these expenditures.
ALTERNATIVES
Do not Award the Contract. Council may decide not to award the contract to Alexander’s
Contract Meter Reading however, the current contract will expire March 31, 2020. Staff does not
recommend this option, as the City has come to rely upon and recognize the benefits of contract
meter reading.
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Attachments:
a - COUNCIL READING FILE - Council Agenda Report from December 3, 2019
b - Agreement with Alexander's Contract Services
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AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on ______________ by
and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and
ALEXANDER’S CONTRACT METER READING, hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, on ______________, City requested proposals for Contract Meter Reading Services,
per Project No. 1912-001; and
WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City
for said project; and
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, for three years with the option to extend for two additional years upon
agreement of both parties.
2. INCORPORATION BY REFERENCE. City Project No. 1912-001 and Contractor’ proposal
dated January 7, 2020 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 in a sum not to exceed $1.01 per water meter
plus/minus any agreed upon incentives and/or penalties.
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.
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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 Jennifer Thompson
Utilities Department
879 Morro St. San Luis Obispo, Ca 93401
Consultant Mark Hibsham
CEO
8655 Morro Rd. Atascadero, Ca 93422
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: _____________________________________
Heidi Harmon, Mayor
APPROVED AS TO FORM: CONSULTANT:
________________________________ By: _____________________________________
J. Christine Dietrick, City Attorney Mark Hibshman, CEO
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Department Name: Community Development
Cost Center: 4003
For Agenda of: Marsh 3, 2020
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Kyle Van Leeuwen, Assistant Planner
SUBJECT: SECOND READING OF ORDINANCE NO. 1679 (2020 SERIES),
INTRODUCED BY THE CITY COUNCIL ON FEBRUARY 18, 2020, TO
AMEND TITLE 17 OF THE MUNICIPAL CODE ASSOCIATED WITH
ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING
UNITS
RECOMMENDATION
Adopt Ordinance No. 1679 (2020 Series) amending Title 17 of the San Luis Obispo Municipal
Code regarding Accessory Dwelling Units and Junior Accessory Dwelling Units.
DISCUSSION
On February 18, 2020, the City Council voted 5 - 0 to reintroduce Ordinance No. 1679 (2020
Series), which amends Title 17 of the City’s Municipal Code regarding Accessory Dwelling
Units and Junior Accessory Dwelling Units. The Ordinance was originally introduced on
February 4, 2020, and the Council made substantive changes to the proposed rules during their
review on February 18, 2020.
The proposed Ordinance amends the City's existing Accessory Dwelling Unit Ordinance and
other applicable sections to align with the amended State law, which will allow the City to
continue to regulate the development of accessory dwelling units and junior accessory dwelling
units consistent with State standards.
The Ordinance reflects the amendments made at the meeting and is now ready for adoption. A
summary of the Ordinance was prepared and published in the local newspaper five days prior to
the second reading. The amendment will become effective thirty (30) days after final passage of
the Ordinance.
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BACKGROUND
Previous Council or Advisory Body Action
• January 8, 2020, Planning Commission recommendation to the City Council (7-0)
• February 4, 2020, City Council introduced the ordinance (5-0)
• February 18, 2020, City Council reintroduced the ordinance with minor changes (5-0)
Policy Context
Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) are mandated
by the State of California to address housing issues related to supply and affordability. Similarly,
the creation of these units, which are smaller in size and primarily created on existing developed
lots, advances the Major City Goal to facilitate the production of housing and is consistent with
goals and policies of the Land Use and Housing Elements of the General Plan
Public Engagement
The 12-week time frame between the State’s adoption of the bills regulating ADUs and JADUs
and their effective date (January 1, 2020) did not enable staff to conduct workshops or public
forums regarding the recommended amendments to the City’s Zoning Regulations in response to
these changes to the California Government Code. Public engagement regarding the City’s ADU
and JADU ordinance occurred through response to questions and receipt of feedback from the
public by Community Development Department staff during the last three years of ADU
permitting, which was considered while drafting the proposed amendments. In addition, public
correspondence and testimony provided in advance of and during the February 4, 2020 City
Council Meeting and the January 8, 2020 Planning Commission hearing were taken into
consideration when formulating these amendments to City’s Zoning Regulations.
Next Steps
The amendments to the Zoning Regulations will become effective on April 2, 2020 (30 days
after adoption).
ENVIRONMENTAL REVIEW
The ordinance is exempt under California Public Resources Code Section 21080.17 (Application
of Division to Ordinances Implementing Law Relating to Construction of Dwelling Units and
Second Units), which states that: “This division [the California Environmental Quality Act
(CEQA)] does not apply to the adoption of an ordinance by a city or county to implement the
provisions of Section 65852.1 or Section 65852.2 of the Government Code.” Pursuant to this
statute, CEQA does not apply to the adoption of an ordinance by a city or county implementing
the provisions of Section 65852.2 of the Government Code, which regulates ADUs and JADUs
(as defined by Government Code Section 65852.22).
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FISCAL IMPACT
Budgeted: N/A Budget Year: 19-20
Funding Identified: N/A
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund N/A
State
Federal
Fees
Other:
Total
When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which
found that overall the General Plan was fiscally balanced. Accordingly, since the proposed
amendments are consistent with the General Plan, it has a neutral fiscal impact.
During its review, the Planning Commission expressed concerns about fiscal impacts associated
with the provision of new infrastructure to support ADUs and JADUs in existing neighborhoods.
At this time, the number of ADUs and JADUs expected to be permitted over the next several
years is between 30 and 50 units per year spread throughout the City. At the same time, the City
has continued to experience reductions in the average occupancy of all residential units in the
City. Specifically, the City’s population is not increasing at the steady rate expected based on the
number of housing units constructed.
Going forward, the City will continue to monitor its infrastructure including water distribution,
wastewater collection, traffic congestion, parking availability and other factors in neighborhoods.
However, the fiscal impacts associated with the development of ADUs and JADUs is not
expected to be significant because of the relatively small number of additional units anticipated
to be spread out across the City, and because reduced household size in the City means that
population is not increasing at the rate previously anticipated.
ALTERNATIVES
Modify the Proposed Ordinance – The Council may make minor, non-substantive changes to the
proposed Ordinance for staff to incorporate into the final documents. Any material changes to
the Final Ordinances would require further review by staff and the Planning Commission
followed by re-introduction of the Ordinance by the Council.
Attachments:
a - Ordinance No. 1679 (2020 Series)
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ORDINANCE NO. 1679 (2020 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 17 (ZONING
REGULATIONS) OF THE MUNICIPAL CODE ASSOCIATED WITH
ACCESSORY DWELLING UNITS AND INTRODUCING JUNIOR
ACCESSORY DWELLING UNITS
WHEREAS, on October 9, 2019, the California legislature passed, and Governor Newsom
signed SB 13, AB 68, AB 670, and AB 881 to encourage development of accessory dwelling units
and junior accessory dwelling units; and
WHEREAS, the City of San Luis Obispo desires to update its Accessory Dwelling Unit
section and introduce a Junior Accessory Dwelling Unit section of Title 17, consistent with current
state law; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California,
on January 8, 2020, for the purpose of considering amendments to Title 17 (Zoning Regulations)
of the Municipal Code regarding accessory dwelling units and junior accessory dwelling units and
recommended approval of amendments to the Municipal Code with revisions; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on February
4, 2020, for the purpose of considering amendments to the Municipal Code related to the regulation
of accessory dwelling units and junior accessory dwelling units (CODE-0821-2019); and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on February
18, 2020, and provided substantive modifications to the amendments to the Municipal Code related
to the regulation of accessory dwelling units and junior accesso ry dwelling units (CODE-0821-
2019); and
WHEREAS, the City Council finds that the proposed text amendments are consistent with
the General Plan, the purposes of the Zoning Regulations, and other applicable City ordinances;
and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law; and
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.
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SECTION 2. Section 17.70.120 of the San Luis Obispo Municipal Code, entitled Lot
Coverage, is hereby amended to read as follows:
17.70.120 – Lot Coverage
A. Purpose and Application. As defined in Chapter 17.158 (General Definitions), lot coverage is
the ratio of the total area of a lot covered by the footprint of all structures to the net lot area,
typically expressed as a percentage of the total lot area, including all buildings, decks,
balconies, porches, accessory structures and accessory dwellings, and similar architectural
features. Maximum coverage shall be as provided in the specific property development
standards for the various zones in Chapters 17.12 through 17.64, inclusive.
Figure 3-10: Lot Coverage
B. Excluded from Lot Coverage. The following structures shall be excluded from the lot coverage
calculation:
1. Uncovered decks, porches, landings, balconies, and stairways that are 30 inches or less in
height, as measured from the adjacent existing grade.
Figure 3-11: Decks Excluded from Coverage
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2. Roof eaves which project 30 inches or less from the structure are not included in the
determination of coverage.
3. Swimming pools and hot tubs that are not enclosed in roofed structures or decks.
4. One small, non-habitable accessory structure under 120 square feet and under seven feet
high. Any additional structures above quantity of one shall be included in lot coverage.
5. Up to 800 square feet of an accessory dwelling unit. Any additional square footage of an
accessory dwelling unit shall be included in lot coverage.
SECTION 3. Section 17.86.020 of the San Luis Obispo Municipal Code, entitled
Accessory dwelling units and guest quarters, is hereby amended to read as follows:
17.86.020 – Accessory dwelling units, and junior accessory dwelling units, and guest quarters.
A. Purpose and Applicability. The purpose of this chapter is to prescribe development and site
regulations that apply, except where specifically stated, to accessory dwelling units, and junior
accessory dwelling units, and guest quarters, as defined in Chapter 17.156 (Land Use Definitions).
B. Accessory Dwelling Units. The provisions in this subsection shall apply to accessory dwelling
units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with
Chapter 17.10 (Use Regulations).
1. Purpose. The purpose of this chapter is to provide for the creation of accessory dwelling
units in a manner that is consistent with requirements identified in Government Code
Section 65852.2, as amended from time to time. Implementation of this section is meant to
expand housing opportunities by increasing the number of smaller units available within
existing neighborhoods.
2. General Requirements.
a. Application. Where this section does not contain a particular type of standard or
procedure, conventional zoning standards and procedures shall apply.
b. Areas Where Accessory Dwelling Units Are Allowed. Upon meeting the
requirements of this section, accessory dwelling units may be established in any
zone that allows single-unit residential dwellings, multi-unit residential dwellings,
or mixed-use development (per table 2.1), where a single-family structure, duplex
or multifamily structure is existing or proposed. The existing or proposed
residential dwelling is referred to as “primary unit” in this section. Accessory
dwelling units that conforms to this section shall not be considered a dwelling unit
for the purpose of calculating density.
c. No Subdivision of Property. No subdivision of property shall be allowed where
an accessory dwelling unit has been established and the resulting subdivision does
not maintain the primary residence on the same lot as the accessory dwelling
unit(s).
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d. Sale of Property. This section shall apply to new owners of property where an
accessory dwelling unit has been established. All conditions of director’s action (if
applicable), restrictive covenants and other contractual agreements with the city
shall apply to the property and the new owners, except as allowed or prohibited by
state law.
e. Applicability of Building Codes. Accessory dwelling units shall conform to all
applicable building and construction codes.
3. Requirements on Lots with a Proposed or Existing Single-Family Structure or Duplex.
a. Unit Types Allowed. An accessory dwelling unit on a lot with a single-family
structure or duplex may be either attached or detached from the primary unit.
i. Attached: An attached accessory dwelling unit shall be either connected to
(by a minimum of one shared wall) or contained completely or partially within
the existing footprint of a single-family structure or duplex.
ii. Detached: A detached accessory dwelling unit shall be either new or
converted residential square footage that is not connected to the primary single-
family structure or duplex.
b. Size of Accessory Dwelling Unit. The gross floor area of an attached or detached
accessory dwelling unit shall be as follows:
i. Attached: The gross floor area of an attached accessory dwelling unit shall
be no less than 150 square feet and shall not exceed the lesser of the following:
50 percent of an existing primary unit’s living area, or; 850 square feet for a
studio or one-bedroom unit, or; 1,000 square feet for a unit containing at least
two bedrooms.
ii. Detached: The gross floor area of a detached accessory dwelling unit shall
be no less than 150 square feet and shall not exceed 850 square feet for a studio
or one-bedroom unit, or 1,000 square feet for a unit containing at least two
bedrooms.
iii. An accessory dwelling unit that is entirely within the proposed space of a
single-family dwelling or existing space of a single-family dwelling or
accessory structure shall be no less than 150 square feet. An expansion of not
more than 150 square feet beyond the same physical dimensions as the existing
structure may be included if the expansion beyond the physical dimensions of
the existing structure is limited to accommodating ingress and egress. This does
not apply to duplexes.
c. Limitation on Number. Only one accessory dwelling unit is permitted per lot.
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4. Requirements on Lots with a Proposed or Existing Multifamily Structure Containing
Three or More Units.
a. Unit Types Allowed. An accessory dwelling unit on a lot with a multifamily
structure may be converted from existing square footage, or as new units detached
from the primary structure.
i. Converted Square Footage Units: Accessory dwelling units may be created
within the portions of existing multifamily structures that are not used as livable
space, including, but not limited to, storage rooms, boiler rooms, passageways,
attics, basements, or garages, if compliant with state building standards for
dwellings.
ii. New Detached Units: Accessory dwelling units may be created on a lot that
has an existing or proposed multifamily structure and must be detached from
the primary structure.
b. Size of Accessory Dwelling Unit. The gross floor area of an accessory dwelling
unit on a lot with a multifamily structure shall be no less than 150 square feet.
c. Limitation on Number. The number of accessory dwelling units shall be limited
to no more than 25 percent of the existing or proposed multifamily units but shall
not be less than the following per lot: 1) one unit that is converted from existing
square footage, or 2) two new detached units. No more than two detached units
shall be allowed per lot.
d. Lots with both a Multifamily Structure and Single-Family Structure or Duplex.
Provisions for accessory dwelling units on lots with multifamily structures cannot
be combined with provisions for lots with single-family structures or duplexes, or
vice versa.
5. Performance Standards and Compatibility.
a. Design Standards. Accessory dwelling units shall conform to all applicable
development standards of the underlying zone, including but not limited to height,
setback area, parking, and building coverage, unless otherwise stated in this section
or prohibited by state law.
i. No passageway, defined as a pathway that is unobstructed clear to the sky
and extends from a street to one entrance of the accessory dwelling unit,
shall be required in conjunction with the construction of an accessory
dwelling unit.
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iii. No setback shall be required for an existing permitted structure that is
converted to an accessory dwelling unit, or for an accessory dwelling unit
that is constructed in replacement of an existing permitted structure,
provided it is in the same location and has the same dimensions.
iv. A setback of no more than four feet from the side and rear lot lines shall be
required for an accessory dwelling unit.
v. Accessory dwelling units that include the creation of new square footage
shall be limited to 16 feet in height, with an exception for accessory
dwellings units that are constructed above an existing garage, which shall
be limited to 25 feet in height. Up to 150 square feet of new square footage
may be exempted from this requirement in connection to a conversion of
existing upper floor square footage, but only as needed to accommodate
ingress and egress.
vi. Architectural style and form shall match the style and form of the primary
residential structure(s) on the property.
vii. The materials of the accessory dwelling unit shall match the materials of the
primary residential structure(s) on the property.
viii. Accessory dwelling units shall not be required to provide fire sprinklers if
fire sprinklers are not required for the primary residence.
ix. No additional parking spaces shall be required for an accessory dwelling
unit. If a garage or car port is converted or removed to accommodate an
accessory dwelling unit, replacement parking is not required.
x. Exceptions to these design standards can be approved by the Director,
through Directors Action, subject to required findings (section 17.108.040).
b. Historic Resources. Accessory dwelling units on listed historic properties and
in historic districts shall be found consistent with the historic preservation
ordinance, including historic preservation guidelines and Secretary of the Interior
standards for the treatment of historic properties.
c. Utility Connection Fees. Where an accessory dwelling unit is created within an
existing structure (primary or accessory), no new utility connection or payment of
impact fees shall be required. For all other accessory dwelling units, a new utility
connection for the accessory dwelling unit and payment of impact fees may be
required if the accessory dwelling unit is 750 square feet or more.
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6. Procedure Requirements. An accessory dwelling unit that meets the standards contained
in this section shall be subject to ministerial review (building permit) and approval without
discretionary review (i.e., use permit, architectural review, etc.) or public hearing. Within
sixty days of receiving a complete application, the city shall approve any such application
which complies with all applicable requirements and development standards identified in
this chapter. When an accessory dwelling unit is proposed with a new single-family,
duplex, or multifamily structure, this sixty-day requirement shall not apply.
7. No Short-Term Rental. An accessory dwelling unit cannot be rented for a period of less
than 30 days. Homestay use of an accessory dwelling unit is prohibited.
8. Violations. Violation of any of the provisions shall be subject to basic code enforcement
action as provided in Title 1 of the Municipal Code.
9. Exceptions. The director may authorize an exception to the square footage standards to
allow an accessory dwelling unit up to 1,200 square feet through the director’s action
process. No other exceptions to the provisions of this Section shall be approved, except as
provided in subsection B.5.a.x.
C. Junior Accessory Dwelling Units. The provisions in this Subsection shall apply to junior
accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where
allowed in compliance with Chapter 17.10 (Use Regulations).
1. Purpose. The purpose of this Chapter is to provide for the creation of junior accessory
dwelling units in a manner that is consistent with requirements identified in Government
Code Section 65852.22, as amended from time to time. Implementation of this Section is
meant to expand housing opportunities by increasing the number of smaller units available
within existing neighborhoods.
2. General Requirements.
a. Application. Where this Section does not contain a particular type of standard
or procedure, conventional zoning standards and procedures shall apply.
b. Areas Where Junior Accessory Dwelling Units Are Allowed. Upon meeting the
requirements of this Section, junior accessory dwelling units may be established in
any zone where the use of the property is a single-unit dwelling, either existing or
proposed. A junior accessory dwelling unit may only be allowed on a lot with an
accessory dwelling unit if the accessory dwelling unit is detached from the single-
family structure.
c. Sale of Property. A junior accessory dwelling unit shall not be sold
independently of the primary dwelling on the parcel.
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d. Location. A junior accessory dwelling unit must be created within the walls of
a proposed or existing primary dwelling. Conversion of an existing garage into a
junior accessory dwelling unit is not permitted by this section.
i. An expansion of not more than 150 square feet beyond the same
physical dimensions as the existing structure may be included if the
expansion beyond the physical dimensions of the existing structure is
limited to accommodating ingress and egress.
e. Size of Junior Accessory Dwelling Unit. The gross floor area of a junior
accessory dwelling unit shall not exceed 500 square feet.
f. Limitation on Number. Only one junior accessory dwelling unit, may be
located on any residentially zoned lot. A junior accessory dwelling unit may only
be located on a lot which contains one permitted single-family structure or in
connection to the construction of a single-family structure. One detached accessory
dwelling unit may also be located on the lot.
g. Applicability of Building Codes. Junior accessory dwelling units shall conform
to all applicable building and construction codes
3. Performance Standards and Compatibility.
a. Design Standards. Junior accessory dwelling units shall conform to all
applicable development standards of the underlying zone, including but not limited
to height, setback area, parking, and building coverage. A junior accessory dwelling
unit that conforms to this Section shall not be considered a dwelling unit for the
purpose of calculating density.
i. A separate exterior entry shall be provided to serve a junior accessory
dwelling unit.
iii. The interior connection to the main living area may be maintained or
removed.
iv. At a minimum, junior accessory dwelling units shall include an
efficiency kitchen, which shall contain a cooking facility, food preparation
counter, and storage cabinets.
v. Junior accessory dwelling units shall not be required to provide fire
sprinklers if fire sprinklers are not required for the primary residence.
vi. No additional parking spaces shall be required for a junior accessory
dwelling unit.
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b. Utility Connection Fees. Where a junior accessory dwelling unit is created
no new utility connection or payment of impact fees shall be required.
c. Fire and Life Protection. For purposes of any fire or life protection
ordinance or regulation, a junior accessory dwelling unit shall not be considered a
separate or new dwelling unit.
4. Procedure Requirements. A junior accessory dwelling unit that meets the standards
contained in this Section shall be subject to ministerial review (building permit) and
approval without discretionary review (i.e., Use Permit, Architectural Review, etc.) or
public hearing. Within sixty days of receiving a complete application, the City shall
approve any such application which complies with all applicable requirements of this
Section.
5. Owner-Occupancy. The owner of the property shall occupy either the primary
residence or the junior accessory dwelling unit.
6. Covenant Agreement. Prior to the issuance of building permits for a junior accessory
dwelling unit, a covenant agreement shall be recorded which discloses the structure’s
approved floor plan and status as an “junior accessory dwelling unit” and agreeing that the
owner of the property will occupy either the primary residence or the junior accessory
dwelling unit. This agreement shall be recorded in the office of the County Recorder to
provide constructive notice to all future owners of the property.
7. No Short-Term Rental. A junior accessory dwelling unit cannot be rented for a period
of less than 30 days. Homestay use of a junior accessory dwelling unit is prohibited.
8. Violations. Violation of any of the provisions shall be subject to basic code enforcement
action as provided in Title 1 of the Municipal Code.
D. Guest Quarters.
1. Purpose and Intent. The purpose of this section is to establish regulations for the
development of guest quarters as an approved accessory use to a primary residential unit.
2. Applicability. This section does not apply to legally established dwellings or accessory
dwelling units, or accessory structures which are separately defined in Chapter 17.158
(General Definitions).
3. General Requirements. Guest quarters shall conform to all applicable zoning
regulations such as height, yards, parking, building coverage, etc., and shall be subject to
the following provisions:
a. Accessory to Primary Residence. Guest quarters may only be used in conjunction
with a primary residence that contains a kitchen and may consist of detached structures
or additions to primary structures.
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b. Size. Guest quarters shall be no larger than four hundred fifty square feet.
c. Density and Development Standards. Guest quarters shall be consistent with
density provisions and development standards of the underlying zone. For the
purposes of calculating density in multi-unit residential zones, guest quarters will be
considered an additional bedroom, accessory to the primary unit. The structure may
not exceed four hundred fifty square feet and shall remain in an open floor plan (studio
configuration).
d. Zones in Which Guest Quarters May Be Allowed. Upon meeting the requirements
in this section, guest quarters may be established in the following zones: R-1, R-2, R-
3, R-4, and O, when the primary use on the site is a single-unit residential dwelling.
e. Areas Prohibited. Guest quarters shall not be allowed on nonconforming lots.
Guest quarters shall not be established in any condominium or planned development
project unless specifically addressed in the planned development ordinance as adopted
or amended, or any mobile home subdivision or trailer park. Guest quarters shall not
be allowed on lots with an existing accessory dwelling unit.
f. Owner Occupancy. The property must be occupied by the property owner as the
owner’s primary place of residence. If a property can no longer be occupied as the
owner’s primary place of residence, the guest quarters may continue to be used as
habitable space (e.g., office, pool house, art studio) but can no longer be used as
overnight sleeping quarters.
g. No Separate Rental. Guest quarters may not be rented separately from the primary
dwelling unit.
h. No Kitchen Facilities. No facilities meeting the definition of a “kitchen” as defined
in Chapter 17.158 (General Definitions) may be installed and plumbing shall be
provided for bathroom use only. No plumbing may be provided to “wet bars,”
dishwashers, or any features that could be used for a kitchen. Plans approved for
construction of guest quarters shall not include countertops or plumbing designed for
subsequent installation of sinks, dishwashers, garbage disposals, or any other features
consistent with the definition of a “kitchen.”
4. Procedure Requirements. Prior to filing building plans with the city building division,
the following shall be met:
a. Architectural Review Required. All requests shall be reviewed for consistency with
the city’s community design guidelines and this section. The director shall determine,
upon receiving a complete application, whether the project shall be forwarded to the
architectural review commission for review. All new development projects within
historic districts or within properties that contain designated historic structures shall be
referred to the cultural heritage committee to be reviewed for consistency with
Secretary of the Interior standards for treatment of a historic property.
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b. Application Contents. A guest quarters permit shall be approved by the director prior
to the submittal of documents requesting construction approval. No additional
application fees for architectural review shall be required.
c. Owner’s Agreement with the City. Prior to the issuance of construction permits, a
covenant agreement shall be recorded that discloses the structure’s approved floor plan
and status as “guest quarters,” which cannot be used as an independent dwelling unit,
and may only be used in conjunction with the primary residence that contains a kitchen.
This agreement shall be recorded in the office of the county recorder to provide
constructive notice to all future owners of the property. The covenant agreement also
may contain authorization for annual inspections, and to allow the city upon reasonable
time and notice to inspect the premises for compliance with the agreement and to verify
continued compliance with requirements of this section and Health and Safety Codes.
If a property can no longer be occupied as the owner’s primary place of residence, the
guest quarters may continue to be used as habitable space (e.g., office, pool house, art
studio) but shall no longer be used as overnight sleeping quarters.
5. Conversion of Guest Quarters to an Accessory Dwelling Unit. A legally established
guest quarters may either be retained in its configuration or be converted to an accessory
dwelling unit in compliance with the provisions of this chapter; however, only one
accessory dwelling unit or guest quarters is allowed per property. (Ord. 1657 § 17, 2019;
Ord. 1650 § 3 (Exh. B), 2018)
SECTION 4. Section 17.156.004 of the San Luis Obispo Municipal Code, entitled A
Definitions, is hereby amended to read as follows:
17.156.004 – A Definitions
Accessory Dwelling Unit (ADU). An attached or detached dwelling unit that is no more than 1,200
square feet in size, provides complete independent living facilities for one or more persons, and is
located on a lot with a proposed or existing primary residence. An ADU includes permanent
provisions for living, sleeping, eating, cooking and sanitation on the same lot as a single-family or
multifamily structure is or will be situated. An ADU may be structured as one efficiency unit, as
defined in of the Health and Safety Code Section 17958.1, and/or (2) a manufactured home, as
defined in of the Health and Safety Code Section 18007, among other formats.
SECTION 5. Section 17.156.022 of the San Luis Obispo Municipal Code, entitled J
Definitions, is hereby amended to read as follows:
17.156.022 – J Definitions
Junior Accessory Dwelling Unit (JADU). A unit that is no more than 500 square feet in size and
contained entirely within a single-family residence. A junior accessory dwelling unit may include
separate sanitation facilities or may share sanitation facilities with the existing structure.
SECTION 6. 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
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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 7. Environmental Determination. The ordinance is exempt under Public
Resources Code Section 21080.17 that applies to local ordinances implementing State regulations
related to accessory dwelling units.
SECTION 8. Ordinance Number 1657 (2019 Series) is hereby amended and superseded
to the extent inconsistent herewith.
SECTION 9. 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
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 18th day of February 2020, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 3rd day of March, 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
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Department Name: Public Works
Cost Center: 5001
For Agenda of: March 3, 2020
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager / Interim Director of Public Works
Prepared By: Matt Horn, Deputy Director of Public Works and City Engineer
SUBJECT: SANTA ROSA AT MONTEREY REIMBURSEMENT AGREEMENT WITH
1144 HIGUERA STREET, LLC
RECOMMENDATION
1. Adopt a Resolution (Attachment A) approving a Reimbursement Agreement (Attachment B)
for the construction of specific public improvements by 1144 Higuera Street, LLC that both
maintain and improve the downtown, and authorize the City Manager to execute this
Agreement; and
2. Advance Infrastructure Investment Funds in the amount of $500,000 from Fiscal Year 2020-
21 to 2019-20; and
3. Defer Fiscal Year 2020-21 Downtown Renewal Project to support the cost associated with
the Reimbursement Agreement.
DISCUSSION
Background
The property located at 1144 Higuera Street is currently under development. As part of that
development a new restaurant space will be created at the southeast corner adjacent to the
intersection of Santa Rosa and Monterey Streets (“Intersection”). As with standard construction
in the Downtown Core, 1144 Higuera Street, LLC (“Developer”) was proposing to install City
Standard Mission Style Sidewalk approximately eight-foot-wide, or the minimum width allowed
to adequately address pedestrian needs. Based upon conversations between the Developer and
staff, the Developer is now proposing to install eight-foot-wide sidewalks along Santa Rosa
Street and an eighteen-foot-wide sidewalk along Monterey Street (see Attachment C). At this
time, the Developer is also reviewing the reimbursement agreement and the terms will be
finalized prior to execution.
Reasons for Prominent Monterey Street Sidewalk
This enhanced sidewalk was proposed to create a signature corner that clearly conveys to the
community that they are entering into the Downtown Core. It will provide a focal point at the
entrance to the Downtown (from Scenic Highway 1 and Historic Monterey Street) that is
prominent, activated (through sidewalk dining) and welcoming. It will increase the likelihood of
community members and visitors that may be staying in adjacent hotels to further investigate and
enjoy the Downtown. This widened sidewalk allows for the future restaurant anchor tenant to
have greater amounts of outdoor dining while still providing the necessary facilities for
pedestrians comfortably to use. This level of investment may also increase the likelihood of
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other adjacent properties to redevelop, helping the continued transitions of this area to a mixed
use of commercial and housing inventory. Lastly, this enhanced sidewalk will provide increased
safety for the thousands of employees of the County of San Luis Obispo, Su perior Court,
banking institutions, medical offices, and other adjacent businesses.
Construction Partnership Opportunity
To accomplish this increased sidewalk width, more than half of Monterey Street must be
reconstructed in order to match vertical elevations, provide acceptable slopes and grades for
community members with limited mobility, address stormwater drainage issues, and transition
the existing roadway to the new sidewalk elevation. This amount of public improvement (of the
street) for this type of development creates a fiscally infeasible situation for the development to
bear without a financial contribution from the City. Fortuitously, projects that both improve the
existing intersection and the pavement of Monterey Street were currently under development by
staff for future consideration by Council. If the City and Developer partner on these
improvements. they will be accomplished more rapidly than originally anticipated. This will
also directly benefit the vitality of the Downtown Core, increase accessibility, and incent future
redevelopment along Monterey Street.
Public Improvements Planned and Approved
The Developer has prepared plans to implement public improvements associated with this
project and those plans have been reviewed and approved by the City. The Developer is
proposing to install:
1. High Visibility Crosswalks. Four marked high-visibility crosswalks at the Intersection that
will significantly increase pedestrian safety.
2. Bicycle Enhancements. Provide enhanced bicycle markings and bicycle boxes at the
Intersection that alert vehicles to the possible presence of bicycles in the roadway and
provide a delineated path for riders to follow.
3. New and Flexible Traffic Signal Equipment. Install new traffic signal equipment at the
Intersection that increases safety and provides flexibility for the future implementation of a
pedestrian scramble phase if in the future studies indicate a scramble 1 is an appropriate
measure. This work will also bring the signal equipment into compliance with current City
Standards and accessibility requirements. Last, the new signal equipment will allow for
signal phasing changes that will decrease exposure for pedestrian/vehicle conflicts.
4. Substantial Repaving. The project includes repaving an area of Monterey Street that is
approximately 30 feet wide and 160 feet long.
5. Prominent and Widened Sidewalk. As previously discussed, new sidewalk in the Mission
Style with appropriate accessible ramps will also be installed. The Monterey Street frontage
will be eighteen-feet wide and allow for multiple uses including outdoor dining and
pedestrians.
The total value of these improvements is estimated at approximately $560,000 of which the
Developer will fund $200,000.
1 A pedestrian scramble, also known as scramble intersection and scramble corner is a type of traffic signal movement that temporarily stops
all vehicular traffic, thereby allowing pedestrians to cross an intersection in every direction, including diagonally, at the same time.
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Future Flexibility
While this proposed work discussed above will increase safety and maintain the area
immediately, the Developer is proposing to install improvements in the public right of way that
will be used exclusively for this private business needs. These improvements are not the subject
of this reimbursement agreement and will be privately funded. If in the future, the City
determines that the use of the public right of way needs to be modified to meet some future
unknown need, the Developer is subject to an encroachment agreement. This encroachment
agreement protects the City interest of the right of way and upon notification by the City to the
Developer, the Developer is required to remove all private infrastructure in the public right of
way and restore the right of way for public use.
Policy Context
Municipal Code Section 16.20.110 establishes the eligibility for reimbursement agreement for
private development. Whenever improvements are required to be installed adjacent to property
other than that being developed or in greater size or capacity than that required for the
development of the property under consideration, the developer of the improvements may be
eligible for reimbursement.
Public Engagement
This project has a notify level of engagement as identified in the City’s Public Engagem ent and
Notification level. Public hearings were held before the Architectural Review Commission and
Bicycle Advisory Committee during the entitlement process for the building.
CONCURRENCE
The City’s Attorney, Community Development & Finance Departments have reviewed this staff
report and concur with its recommendation.
ENVIRONMENTAL REVIEW
The project was determined to be Categorically Exempt from environmental review under Class
32, In-Fill Development Projects; Section 15332 of the State of California Environmental
Quality Act (CEQA) Guidelines, because the project is consistent with General Plan Policies for
the land use designation and is consistent with the applicable zoning designation and applicable
regulations. The project site occurs on a property of no more than five acres, which is
substantially surrounded by urban uses and has no value as habitat for endangered, rare or
threatened species. The project would be served by adequate required utilities and public
services. The project has been reviewed by the City’s Public Works Department, Transportation
Division, and no significant traffic impacts were identified, based on the size and location of the
project. Based on the current use of the site, the proposed project as designed, the location fo r the
project, and compliance with existing Zoning and Municipal Code Regulations including the
City’s Noise and Stormwater Regulations, the project would not result in any significant effects
related to noise, air quality, or water quality. The proposed public improvements and
reimbursement agreement are consistent with this determination and will not result in any
reasonably foreseeable impacts to the environment.
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FISCAL IMPACT
Budgeted: No Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund
State
Federal
Fees
Infrastructure
Investment Fund $559,100 $500,000 $59,100 NA
Total $559,100 $500,000 $59,100 NA
Project Funding Breakdown
Construction $560,000
Contingencies $140,000
Project Total $700,000
Funding Sources
Developer $200,000
City Infrastructure Investment Fund $500,000
Funding Source Total $700,000
With the 2019-21 Financial Plan, the City implemented the Infrastructure Investment Fund. This
fund’s primary objective is to fund partnership projects between the City and the development
community and fund projects that would produce economic dividends to the City or help
accomplish Major City Goals related to housing.
The City’s Infrastructure Investment Fund is primarily comprised of funding received from SB
1090 (the Diablo Canyon nuclear powerplant economic impact mitigation act). This funding is
well suited to be used for public / private partnership projects that could have positive benefits to
the local economy.
As part of the 2018-19 Comprehensive Annual Financial Report that Council will be reviewing
in detail on March 17, 2020; the specific Downtown Renewal Project budgeted for Fiscal Year
2020-21 (focused on sidewalk replacement on Broad Street) a significant portion is
recommended for deferral to a later date and the remainder for reprogrammed capital projects
(banners and sidewalk cleaning equipment). The remainder of the funds will be used to replenish
the Infrastructure Investment Fund or other improvements as part of the 2020-21 fiscal year. The
rationale for this recommendation is that the necessary community outreach has yet of occur,
plans and specifications have yet to be completed, and the general sense is that block of
Downtown could use a break from construction projects as business gets back to normal with the
opening of Hotel Cerro.
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ALTERNATIVES
Deny the request. The City Council could deny the request for a Reimbursement Agreement
with Developer. This action is not recommended because it will delay these important safety
improvements to the intersection of Santa Rosa and Monterey Street and delay the economic
benefits of new commercial properties becoming available and used by local businesses and will
not provide the opportunity to enhance this location into a prominent corner.
Attachments:
a - Draft Resolution
b - Reimbursement Agreement with 1144 Higuera Street, LLC
c - Map of Improvements
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R _____
RESOLUTION NO. _________ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN LUIS OBISPO, CALIFORNIA, APPROVING A REIMBURSEMENT
AGREEMENT WITH 1144 HIGUERA STREET, LLC FOR OVERSIZED
PUBLIC IMPROVEMENTS AND RELATED BUDGETARY
APPROPRIATIONS
WHEREAS, 1144 Higuera Street LLC, has developed plans for necessary public
improvements to Monterey Street and the intersection of Monterey Street and Santa Rosa Street; and
WHEREAS, 1144 Higuera Street LLC has secured City approval of the Public Improvement
Plans and a City Encroachment Permit has been issued for construction; and
WHEREAS, 1144 Higuera Street LLC has entered into an Encroachment Agreement for
private improvements to be installed within the public right-of-way and shall remove said private
improvements within the public right-of-way upon notification at no cost to the City; and
WHEREAS, there are certain public improvements associated with the 1144 Higuera LLC
project that include public improvements that must be installed on adjacent properties and/or are
greater in size and capacity than required to serve only the1144 Higuera LLC project thereby qualify
said public improvements for reimbursement as set forth in San Luis Obispo Municipal Code Section
16.20.110; and
WHEREAS, the City has an established Infrastructure Investment Fund that funds Public/
Private Partnership Projects and projects that provide economic value to the City; and
WHEREAS, the deferment of a previously approved Capital Improvement Plan Project on
Broad Street between Higuera Street and Marsh Street to a future Financial Plan will reduce the
impacts related to construction to the downtown.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The 2020-21 Downtown Renewal Project on Broad Street between Higuera
Street and Marsh Street is deferred to a future Financial Plan.
SECTION 2. The 2020-21 Infrastructure Investment Funding in the amount of $500,000 is
advanced and appropriate to support this “Infrastructure Reimbursement Agreement.”
SECTION 3. The “Infrastructure Reimbursement Agreement” is hereby approved, and the
City Manager is authorized to approve minor revisions and to execute the “Infrastructure
Reimbursement Agreement” on behalf of the City.
SECTION 4. The Public Works Director is authorized to administer and implement the
“Infrastructure Reimbursement Agreement” as provided therein.
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Resolution No. _________ (2020 Series) Page 2
R _____
SECTION 5. The Mayor and City staff are authorized to take action necessary to carry out
the intent of this resolution.
SECTION 6. Environmental Review. The project was determined to be Categorically
Exempt from environmental review under Class 32, In-Fill Development Projects; Section 15332
of the State of California Environmental Quality Act (CEQA) Guidelines, because the project is
consistent with General Plan Policies for the land use designation and is consistent with the
applicable zoning designation and applicable regulations. The project site occurs on a property of
no more than five acres, which is substantially surrounded by urban uses and has no value as
habitat for endangered, rare or threatened species. The project would be served by adequate
required utilities and public services. The project has been reviewed by the City’s Public Works
Department, Transportation Division, and no significant traffic impacts were identified, based on
the size and location of the project. Based on the current use of the site, the proposed project as
designed, the location for the project, and compliance with existing Zoning and Municipal Code
Regulations including the City’s Noise and Stormwater Regulations, the project would not result
in any significant effects related to noise, air quality, or water quality. The propos ed public
improvements and reimbursement agreement are consistent with this determination and will not
result in any reasonably foreseeable impacts to the environment.
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
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INFRASTRUCTURE REIMBURSEMENT AGREEMENT
(Construction of Street Improvements)
This Reimbursement Agreement (“Agreement”) is entered into on ______________,
by and between the City of San Luis Obispo, a California charter city and municipal corporation
(the “City”), and 1144 Higuera Street, LLC, a California limited liability company (the
“Developer”), with regard to the subject property commonly known as 1101 Monterey Street in the
City of San Luis Obispo, Assessor’s Parcel No. 002-436-018 and legally described in Exhibit A,
attached hereto (the “Property”).
A. The purpose of this Agreement is to set forth the terms and conditions upon which
the Developer will construct and be reimbursed for certain public improvements to Monterey
Street associated with Developer’s private improvement project, which otherwise would not be
completed by the City at this time. The public improvements include, without limitation, the
following: traffic control associated with street improvements such as street leveling, grading,
paving, marking, striping, and directional markings; and work or replacement of the traffic signal
arms, including associated utilities, at Monterey and Santa Rosa Street, such improvement made
within the City’s right of way, all of which improvements are contained in the scope of work
outlined in Exhibit B, attached hereto (“Street Improvement Work”).
B. In conjunction therewith, Developer also agrees to complete improvements to a
temporary parking lot on Developer’s Property, which work was value engineered due to its
temporary nature and to allow for construction of a future parking garage.
C. In return for completing the Street Improvement Work associated with Developer’s
private project per the approved Public Improvement Plans (“PIP Plans”), the City agrees to
reimburse Developer for certain agreed costs incurred by Developer, which the parties agree
exceed amounts and scope of work that otherwise could be conditioned upon or exacted from the
Developer’s private improvement project ;
D. City agrees to reimburse Developer for the actual, documented costs of work
exceeding otherwise applicable fees and conditions of project approval, less the amount paid by
Developer attributable to value engineered savings, which amount the parties agree will be a credit
to the City in the amount of Two Hundred Thousand and 00/100 Dollars ($200,000.00) (the “City
Credit”).
In consideration of the above recitals, each of which is incorporated into and are a fully
operative and effective part of this Agreement, and for other good and valuable consideration, the
parties hereby agree:
1. Public Purpose. The City has determined that the Street Improvements Work
exceeding otherwise applicable Developer’s private improvement project fees and permissible
conditions, the associated reimbursement of Developer described herein, and the benefits to be
received in return by the City and the public are in the best interests of the City and the health,
safety, morals and welfare of its taxpayers and residents and is in accordance with public purposes
set forth in federal, state and local law and regulation. The City has further determined that
implementation of this Agreement and completion of the Street Improvement Work will further
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the goals and objectives of orderly development, and timely completion of improvements
complementing and in conformance with existing private approvals and public improvement plans
for Monterey Street, thereby benefiting the public.
2. Developer’s Obligation to Complete Improvements. Developer has substantially
completed the engineering of and improvements to its parking area located off Higuera Street and
has designed and will complete the Street Improvement Work on behalf of the City per the PIP
Plans.
3. Issuance of Improvement Contract. Developer, in its discretion, shall select the
contractor to complete the Street Improvement Work substantially based on the scope of work and
costs based on estimates provided in Exhibit B. Street Improvement Work.
4. Governmental Permits and Compliance with Laws. Before commencement the
Street Improvement Work, the Developer shall, at its own expense, secure or cause to be secured
any and all permits, bonds, entitlements, or other approvals that may be required by or from the
City or any other governmental agency with jurisdiction over the Street Improvement Work in
accordance with otherwise applicable City regulatory requirements.
5. Completion of Work. Contractor has completed the engineering for the parking
lot and Street Improvement Work and has completed the engineering of and improvements to its
parking area located off Higuera Street . Barring a Force Majeure Event, Developer will furnish
the necessary materials for and complete the Street Improvement Work no later than three (3)
months after the City’s approval of the applicable PIP Plans.
6. City’s Reimbursement Obligation. On Developer’s completion of the Street
Improvement Work per the PIP Plans, the City shall reimburse the Developer for its total costs
incurred for the Street Improvement Work less the City Credit, subject to City verification as to
reasonableness of costs claimed in excess of Developer’s otherwise required improvements and
within the scope of work, as set forth in this agreement, as follows:
(a) Developer will submit a certified pay application for the Street
Improvement Work reimbursement to the City upon completion of such work. The
reimbursement request shall be paid by the City as follows:
(i) The City's obligation to reimburse Developer for the Street Improvement
Work is contingent upon the City's receipt and approval, which shall not be unreasonably withheld
or delayed, of the following:
(a) The reimbursement request, which shall include a description of
the work performed, material supplied, and cost incurred or due;
(b) Bills, invoices, vouchers, statements and all other documents,
which shall be attached to the reimbursement request, evidencing the amount paid to third parties;
and
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(c) Conditional waivers and releases of mechanics’ liens stop notice
claims or other lien claim rights; and
(d) City will review any reimbursement request consistent with this
Agreement and if the reimbursement request is deemed complete and in compliance with the
provisions of this Agreement, the City will remit payment to Developer for the total amount of the
invoices (less only the City Credit amount associated therewith) no later than sixty (60) days after
such submittal.
7. Safeguarding and Indemnification.
(a) Safeguarding. Until formal final acceptance of the Street Improvement
Work, Developer shall give good and adequate warning regarding said Street Work Improvements
and will take all reasonable actions to protect the public.
(b) Indemnity. Developer agrees to indemnify, defend, and hold City and its
officers, employees, agents, representatives, and assigns (“City Indemnitees”) harmless from and
against any losses, claims, demands, actions, or causes of action (“Claims”), of any nature
whatsoever, arising out of or in any way connected with the performance of Developer, its
Contractor, any subcontractors, officers, employees, agents, or representatives under this
Agreement, including costs of suit and reasonable attorneys' fees. If the City Indemnitees are made,
a party to any action, lawsuit, or other adversarial proceeding in any way involving such Claims,
Developer shall provide a defense to the City Indemnitees, or at the City’s option, reimburse the
City Indemnitees their costs of defense, including reasonable attorneys’ fees, incurred in defense
of such claim. In addition, Developer shall be obligated to promptly pay any final judgment or
portion thereof, rendered against the City Indemnitees.
6. Conformity with State Labor and Work Safety Laws. Developer shall carry on the
design and construction of the improvements in a timely manner and in conformity with all
applicable laws, including but not limited to all applicable state labor and work safety laws and
regulations, including the provisions of Labor Code Sections 1770, et seq. relating to prevailing
wages, to the extent applicable to the improvements, as to which the City makes no representations.
The Developer agrees to hold the City harmless and to indemnify and defend the City from all
claims arising under the provisions of Labor Code §§ 1720, et. seq., including, but not limited to
the provisions of Labor Code Section 1726 and 1781.
7. Insurance. Prior to the commencement of any construction of the Street
Improvement Work, Developer, or Developer’s contractors, shall furnish or cause to be furnished
to the City duplicate originals and appropriate endorsements to the Developer’s as (or Developer's
general contractor's) commercial general liability and automobile insurance policies in the
amounts set forth below, naming the City as additional or co-insured:
(a) $1,000,000 for any one person; and
(b) $3,000,000 for any one occurrence; and
(c) $1,000,000 for any property damage.
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4
The above insurance amounts may be satisfied by a combination of primary and umbrella
insurance policies. The policies shall remain in effect during construction of the Street
Improvement Work shall be "occurrence," not "claims made," policies and shall be primary and
non-contributing to any insurance that the City may elect to obtain. Such policies shall contain a
full waiver of subrogation clause. The policies shall be issued by a carrier licensed to do business
in California, with a then-current Best's rating of A:VIII or better. Said policies shall provide that
they shall not be canceled or reduced in types of coverage or amount of coverage without at least
thirty (30) days' prior written notice to the City and that such reduction or cancellation shall
become effective until at least twenty (20) days after receipt by the City of the written notice
thereof. The policy amounts set forth above shall not limit or define the extent of the Developer’s
indemnity liability pursuant to Section 5(b) or any other provision of this Agreement or arising as
a matter of law or at equity.
The Developer shall also furnish or cause to be furnished to the City, upon written request
of the City, evidence satisfactory to the City that any contractor with whom it has contracted for
the performance of the Street Improvement Work carries workers' compensation insurance as
required by law.
8. Notice. Any notice, demand, request, consent, approval, or communication either
party gives to the other party shall be in writing and served personally or sent by prepaid, first-
class mail to the addresses set forth below the signatures hereto. Notice shall be deemed
communicated forty-eight (48) hours from the time of mailing if mailed as provided in this Section
8.
9. Assignment of Agreement. Neither party may assign its obligations hereunder to
any assignee without the knowledge and with written consent of the other party hereto, in which
the other party shall not unreasonably withhold consent. Assignment may be made only to an
assignee willing, financially capable, and competent to carry out the assignor’s obligations.
10. General Provisions.
(a.) If either party commences an action against the other arising out of or in
connection with this Agreement, including the filing of a lien or other legal action to compel
payment of the reimbursement, the prevailing party shall be entitled to recover reasonable
attorneys’ fees and legal costs from the losing party related to enforcement of the provisions of
this Agreement.
(b.) No officer or employee of City shall be personally liable to Developer or any
successor-in-interest in the event of any default or breach by City or for any amount which may
become due to Developer or to its successor or for breach of any obligation of the terms of this
Agreement.
(c.) The performance of the City's and Developer’s respective obligations under this
Agreement are not intended to benefit any party other than the City or the Developer, except as
may be expressly provided otherwise herein. No person or entity not a signatory to this Agreement
shall have any rights or causes of action against any Party to this Agreement as a result of that
Party's performance or non-performance under this Agreement, except as expressly provided
otherwise herein
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(d.) Developer warrants that it has not paid or given, and will not pay or give, any third
party any money or other consideration for obtaining this Agreement. Third parties, for the
purposes of this Section 10.d, shall not include persons to whom fees are paid for professional
services if rendered by attorneys, financial consultants, accountants, engineers, architects and the
like when such fees are considered necessary by the Developer.
(e.) All time for performance hereunder shall be extended where delays or defaults are
due to war; insurrection; any form of labor dispute; lockouts; riots; floods; earthquakes; fires; acts
of God or of third parties; third party litigation; acts of a public enemy; referenda; acts of
governmental authorities (except that the failure of the City to act as required hereunder shall not
excuse its performance); moratoria; epidemics; quarantine restrictions; shortag es of materials;
freight embargoes; and any other matter beyond the reasonable control of the party claiming the
extension (collectively, "Force Majeure Event”) provided, however, that the party claiming the
extension notify the other party of the nature o f the matter causing the default within thirty (30)
days from the occurrence thereof; and, provided further, that the extension of time shall be only
for the period of the Enforced Delays. However, deadlines for performance may not be extended
as provided above due to any inability of the Developer to obtain or maintain financing for the
construction and/or operation of the Street Improvement Work.
(f.) Except as otherwise provided herein, the terms, conditions, covenants, and
agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns,
and successors of the parties hereto.
(g.) Neither party to this Agreement relies upon any warranty or representation not
contained in this Agreement.
(h.) This Agreement shall be governed by and interpreted with respect to the laws of
the State of California.
(i.) Any failure or delay by either party in asserting any of its rights and remedies as to
any default, shall not operate as a waiver of any default or of any rights or remedies provided forth
herein.
(j.) Neither Developer nor any of Developer’s agents, contractors or subcontractors
shall be considered agents of the City in connection with the performance of Developer’s
obligations under this Agreement.
(k.) This Agreement may be amended at any time by the mutual consent of the parties
and by an instrument in writing signed by both parties.
(l.) If any provision or provisions of this Agreement are held unenforceable, all
provisions not so held shall remain in full force and effect.
(m.) The persons executing this Agreement on behalf of the parties hereto
warrant that they are duly authorized to execute this Agreement on behalf of said parties and that
by executing this Agreement, the parties are formally bound to the provisions of this Agreement.
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(n.) This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the undersigned execute this Agreement on behalf of the
Parties.
THE CITY OF SAN LUIS OBISPO, a California
charter city and municipal corporation
By: _____________________________________
Name: __________________________________
Its: _____________________________________
Address: 990 Palm Street
San Luis Obispo, CA 93401
ATTEST:
____________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________________
J. Christine Dietrick, City Attorney
DEVELOPER:
1144 Higuera, LLC
a California limited liability company
By: ________________________________
Nicholas Tompkins, Manager
684 Higuera, Suite B
San Luis Obispo, CA 93401
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Exhibit A-1
Exhibit A
Legal Description of Property
The land referred to in this Commitment is situated in the City of San Luis Obispo, County of San Luis
Obispo, State of California, and is described as follows:
PARCEL 1 AS SHOWN ON LOT LINE ADJUSTMENT NO. SLO AL 16-0244, AS EVIDENCED BY
DOCUMENT RECORDED OCTOBER 31, 2017 AS INSTRUMENT NO. 2017050014 OF OFFICIAL
RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
THAT REAL PROPERTY IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO,
STATE OF CALIFORNIA BEING A PORTION OF BLOCK 30 ACCORDING TO THE OFFICIAL
MAP OF SAID cm FILED FOR RECORD IN BOOK A OF MAPS AT PAGE 46 IN THE OFFICE OF
THE COUNTY RECORDER OF SAID COUNTY ALSO BEING A PORTION OF THE PROPERTY
SURVEYED AND SHOWN ON THE MAP FILED IN BOOK 107 OF LICENSED SURVEYS AT PAGE
15 (107-LS-15) IN SAID RECORDER'S OFFICE TOGETHER WITH A PORTION OF THAT REAL
PROPERTY DESCRIBED IN THE DEED FROM MICHAEL L. BLUM AND KAREN BLUM,
TRUSTEES OF THE BLUM LIVING TRUST DATED AUGUST 28, 1992, TO 1144 HIGUERA
INVESTMENTS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY RECORDED DECEMBER
18, 2015, AS DOCUMENT NUMBER 2015- 063452 IN SAID RECORDER'S OFFICE AND ALSO
SHOWN ON THE MAP FILED IN BOOK 3 OF LICENSED SURVEYS AT PA E 63 IN SAID
RECORDER'S OFFICE MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE MOST WESTERLY CORNER OF THE PROPERTY DESCRIBED IN THE
DEED TO THE CITY OF SAN LUIS OBISPO RECORDED JANUARY 29, 1970, IN BOOK 1551 OF
OFFICIAL RECORDS AT PAGE 542, RECORDS OF SAID COUNTY; THENCE ALONG THE
NORTHWESTERLY LINE OF THE PROPERTY SO DESCRIBED NORTH 54°04'22" EAST, 10.00
FEET TO A NAIL AND TAG "L.S. 5702" PER SAID LICENSED SURVEY 107-LS-15 AND THE TRUE
POINT OF BEGINNING; THENCE ALONG THE NORTHEASTERLY LINE OF THE PROPERTY SO
DESCRIBED
1. SOUTH 36°21'02" EAST, 90.00 FEET; THENCE LEAVING SAID NORTHEASTERLY LINE
2. NORTH 54°04'22" EAST, 126.03 FEET TO A LINE PARALLEL WITH AND 10.00 FEET
SOUTHWESTERLY OF AND MEASURED PERPENDICULAR TO THE NORTHEASTERLY LINE
OF THE PROPERTY DESCRIBED IN THE DEED FROM ROBERT C. HOYT AND ELLA M. HOYT
TO W. T. REID RECORDED SEPTEMBER 1, 1923, IN BOOK 162 OF DEEDS AT PAGE 407 (162-
DDS-407); THENCE ALONG SAID PARALLEL LINE
3. SOUTH 36°20'00" EAST, 21.48 FEET TO THE SOUTHWESTERLY PROJECTION OF A LINE
PARALLEL WITH AND 10.00 FEET SOUTHEASTERLY OF AND MEASURED PERPENDICULAR
TO THE NORTHWESTERLY LINE OF THE PROPERTY DESCRIBED IN THE DEED FROM
MICHAEL L. BLUM AND KAREN BLUM, TRUSTEES OF THE BLUM LIVING TRUST DATED
AUGUST 28, 1992, TO 1144 HIGUERA INVESTMENTS, LLC, A CALIFORNIA LIMITED
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Exhibit A-2
LIABILITY COMPANY RECORDED DECEMBER 18, 2015, AS DOCUMENT NUMBER 2015-063452
IN SAID RECORDER'S OFFICE; THENCE ALONG THE PROJECTION OF LAST SAID PARALLEL
LINE.
4. NORTH 54°03'31" EAST, 10.00 FEET TO THE SAID NORTHEASTERLY LINE OF THE
PROPERTY DESCRIBED IN SAID DEED 162-DDS-407; THENCE CONTINUING ALONG LAST
SAID PARALLEL LINE
5. NORTH 54°03'31" EAST, 59.59 FEET; THENCE LEAVING SAID PARALLEL LINE
6. SOUTH 36°21'02" EAST, 111.13 FEET TO THE NORTHWESTERLY RIGHT-OF-WAY OF
HIGUERA STREET BEING 65.00 FEET WIDE; THENCE ALONG SAID RIGHT-OF-WAY
7. NORTH 53°37'58" EAST, 76.00 FEET TO THE NORTHEASTERLY LINE OF SAID DOCUMENT
NUMBER 2015-063452; THENCE ALONG SAID NORTHEASTERLY LINE
8. NORTH 36°21'02" WEST, 120.57 FEET TO THE MOST NORTHERLY CORNER OF SAID
DOCUMENT NUMBER 2015-063452; THENCE ALONG THE NORTHWESTERLY LINE OF SAID
DOCUMENT NUMBER 2015-063452
9. SOUTH 54°03'31" WEST, 135.59 FEET TO THE NORTHEASTERLY LINE OF SAID DEED 162-
DDS-407; THENCE ALONG SAID NORTHEASTERLY LINE.
10. NORTH 36°20'00" WEST, 101.48 FEET TO THE SOUTHEASTERLY RIGHT-OF-WAY OF
MONTEREY STREET BEING 68.00 FEET WIDE; THENCE ALONG SAID RIGHT-OF-WAY
11. SOUTH 54°04'22" WEST, 136.06 FEET TO THE TRUE POINT OF BEGINNING.
EXCEPTING THEREFROM ANY OIL GAS AND OTHER MINERALS AS RESERVED IN DEED
RECORDED JULY 15, 1998 AS DOCUMENT NO. 1998-043638 OF OFFICIAL RECORDS.
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Exhibit B
Exhibit B
Proposed Scope of Public Street Improvements
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S S S S
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Project:Revisions:Proj. Engr.:Proj. Mngr.:Date:A&V Job No.:Scale:PER PLANABCDEFGHIABCDEFGHI1234567C:\Users\Juan\AppData\Local\Temp\AcPublish_9264\GRADING SHEET.dwg, C-1.2, Feb 06, 2020 11:21am, Juan
Engineer of Record:Plan Prepared By:The use of these plans and specifications shall be restricted tothe original site for which they were prepared and publicationthereof is expressly limited to such use. Reproduction orpublication by any method, in whole or in part, is prohibited.Title to these plans and specifications remain with Ashley &Vance Engineering, Inc. without prejudice. Visual contactwith these plans and specifications shall constitute prima facieevidence of the acceptance of these restrictions.Ashley&Vance
ENGINEERIN G, IN C.
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San Luis Obispo, CA 93401
(805) 545-0010 (323) 744-0010www.ashleyvance.com
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SAN LUIS OBISPO, CA, 93401JMAKBB02.05.2020161376STRIPINGSHEETC-1.21.2.3.4.5.156119GENERAL NOTES:ALL GRADING SHALL BE IN COMPLIANCE WITH THE RECOMMENDATIONSCONTAINED IN THE SOILS REPORT PREPARED BY EARTH SYSTEMS PACIFIC , FILENO. SL-17685-SB, DATED JULY 13, 2017 AND ALL ADDENDA TO THE REPORT SHALLBE CONSIDERED PART OF THESE PLANS. CONTRACTOR SHALL CONTACT SOILSENGINEER PRIOR TO START OF DEMOLITION WORK.CONTACT: DENNIS SHALLENBERGER, GE PHONE: (805) 544-3276ALL CONFLICTING STRIPING SHALL BE GROUND & SEALED.NOTE: A SEPARATE ENCROACHMENT PERMIT IS REQUIRED FORANY WORK IN THE PUBLIC RIGHT-OF-WAY OR WITHIN CITYEASEMENTS FOR CONNECTIONS TO PUBLIC UTILITIES. WORKREQUIRING AN ENCROACHMENT PERMIT INCLUDES BUT IS NOTLIMITED TO DEMOLITIONS, UTILITIES, WATER, SEWER, AND FIRESERVICE LATERALS, CURB, GUTTER, AND SIDEWALK, DRIVEWAYAPPROACHES, SIDEWALK UNDERDRAINS, STORM DRAINIMPROVEMENTS, STREET TREE PLANTING OR PRUNING, CURBRAMPS, STREET PAVING, SIGN REMOVALS AND RELOCATIONS,AND PEDESTRIAN PROTECTION OR CONSTRUCTION STAGING INTHE RIGHT-OF-WAY.DIAL TOLL FREE811 OR (1-800-227-2600) AT LEAST TWO DAYSBEFORE YOU DIGUNDERGROUND SERVICE ALERT OF CALIFORNIANOTE: PEDESTRIAN CROSSINGIMPROVEMENTS OR OTHERSIGNAL MODIFICATIONS ASDETERMINED BY THE CITY.20222321202020EX. STRIPINGEX. STRIPING22SANTA ROSA STMONTEREY ST
0101020HORIZONTAL SCALE: 1" = 10'N 23222228292712.0'10.0'10.0'5.0'11.0'RIGHT OF WAY CONSTRUCTION NOTES:REMOVE AND REPLACE EXISTING CONCRETE CURB AND GUTTER WITHCONCRETE CURB GUTTER PER CITY OF SAN LUIS OBISPO STANDARD DETAIL4030 AND 4110. FLOWLINE TO MAINTAIN MINIMUM OF 0.5% SLOPE. CURBHEIGHT VARIES THROUGH LENGTH OF BULBOUT. CURB TRANSITION 6" TO 10"CURB BEGIN AT STA 0+66.24 MONTEREY ST. CURB TRANSITION 10" TO 6" CURBBEGIN AT STA 1+56.03 MONTEREY ST.RELOCATE EXISTING FIREHYDRANT TO BACK OF CURB PER CITY OF SAN LUISOBISPO STANDARD 6310 AND 6020.RECONSTRUCT ROADWAY PER STANDARD 7110 WITH T.I. OF 8.5. FINALSTRUCTURAL SECTION SHALL BE REVIEWED AND APPROVED BY THE CITY ASA DEFERRED SUBMITTAL.REMOVE AND REPLACE MISSION STYLE SIDEWALK PER CITY OF SAN LUISOBISPO STANDARD DETAIL 4220 AND 4910.CONSTRUCT 24' WIDE MISSION STYLE DRIVEWAY PER CITY OF SAN LUISOBISPO STANDARD DETAIL 2110.GRAVEL LAYER AREA LIMIT. CONSTRUCT 6" CLEAN, CRUSHED, ANGULAR NO. 4(AASHTO M430 STONE) LAYER WITHIN AREA. TOP OF GRAVEL ELEVATION223.75 FG. MAINTAIN TOP OF GRAVEL ELEVATION THROUGHOUT FULL AREA.OVERLAYED AND UNDERLAID WITH ADS GEOSYNTHETICS 315WTMGEOTEXTILE OR APPROVED EQUAL.CURB RAMP PER CITY OF SAN LUIS OBISPO STANDARD DETAIL 4440 ANDCALTRANS A88A CASE A AND DETAIL B.PROPOSED RELOCATION OF GAS LINE PER GAS COMPANY REQUIREMENTS.INSTALL 5' x 5' STREET TREE PER CITY STANDARD 8130 AND 8210. PROVIDECURB CUT INLET PER DETAIL 1 ON SHEET C-2.1. PROVIDE 4" ADS 78 ATRIUMGRATE AT BACK OF TREE WELL TO OUTLET TO GRAVEL LAYER BELOWSIDEWALK WITH 4" PVC. PVC PIPE OUTLET EMBEDDED 6" INTO GRAVEL LAYER.REFER TO DETAIL 3 ON SHEET C-2.1.REMOVE PARKING METER AND STRIPINGREMOVE AND REPLACE EXISTING DRAIN INLET GRATE WITH "HONEYCOMB"GRATE PER CALTRANS TYPE 24-10S GRATE SPECIFICATIONS.INSTALL 4" PVC PIPE TO CONNECT TO BUILDING DOWNSPOUT. OUTLET OF PIPETO 6" GRAVEL LAYER UNDER SIDEWALK.REMOVE EXISTING DRIVEWAY.PROPOSED NEW STREET LIGHT POLE PER SIGNALIZATION PLANSPAINT CURB RED TO THE SATISFACTION OF THE CITY ENGINEER.RESET VAULT LID TO BE FLUSH WITH SURROUNDING CONCRETE. LID TO BESTAINED TO MATCH MISSION STYLE CONCRETE.PROPOSED NEW PEDESTRIAN PUSH BUTTON POLE PER SIGNALIZATION PLANS.PROPOSED NEW PULLBOX PER SIGNALIZATION PLANS. LID TO BE FLUSH WITHAND STAINED TO MATCH SURROUNDING CONCRETEFIRE HYDRANT TO MEET SIDEWALK CLEARANCE PER CITY OF SAN LUISOBISPO STANDARD 6310.REMOVE EXISTING CROSSWALK STRIPING AND INSTALL 10' WIDE HI-VISSTRIPING CROSSWALK PER CITY OF SAN LUIS OBISPO STANDARD 7350.14' BIKE BOX IN WESTBOUND AND LEFT TURN MONTEREY APPROACH WITHHELMETED BIKE PERSON PER CALTRANS STANDARD A24C.DASHED GREEN BIKE LANE THROUGH INTERSECTION PER BIKE LANE MARKINGDETAIL ON SHEET C-2.1 CASE 1.GREEN SHARROW BIKE STRIPING. SHARED ROADWAY BICYCLE MARKING PERCALTRANS STANDARD WITH HELMETED BIKE PERSON PER CALTRANSSTANDARD A24C.CONSTRUCT 2" LATERAL WITH 2" METER SERVICE PER CITY OF SAN LUISOBISPO STANDARD DETAIL 6210, 6110, 6020.PROVIDE DRAINAGE CHANNEL THROUGH PLANTERS. REFER TO LANDSCAPEPLAN DETAILS FOR CONSTRUCTION OF CHANNEL PERMIT #BLDG-2056-2017.INSTALL 25MPH SIGN PER CITY OF SAN LUIS OBISPO CITY STANDARD 7210.GREEN PAINT BIKE LANE WITH 6" WHITE STRIPES PER CALTRANS STANDARDAND DETAIL ON SHEET C-2.1 CASE 1 WITH HELMETED BIKE PERSON PERCALTRANS STANDARD A24C.INSTALL "WAIT HERE" STRIPING PER CALTRANS STANDARD.INSTALL 24" WHITE STRIPE PER CALTRANS STANDARD.INSTALL HYDRANT REFLECTOR PER CITY OF SAN LUIS OBISPO STANDARD7920.1234567891011121314151617181920212223242526272829302.5'4.5'2.5'4.5'2.5'4.5'2.5'4.5'4.0'4.0'4.0'
4.0'TYPTYPTYPTYPTYPTYPTYPTYPTYPTYPTYPTYP 30EX. SIGN TOBE RELOCATEDBEHIND NEW CURBPER CITY STD 721026Item 10Packet Page 137
Item 10Packet Page 138
Department Name: Police
Cost Center: 8000
For Agenda of: March 3, 2020
Placement: Business
Estimated Time: 30 minutes
FROM: Deanna Cantrell, Police Chief
Prepared By: Brian Amoroso, Police Captain
SUBJECT: POLICE DEPARTMENT 2019 CRIME REPORT COMPARISON AND
UPDATE
RECOMMENDATION
Receive and file the 2019 Police Department Crime Report.
REPORT-IN-BRIEF
On March 3, 2020, staff will provide the City Council with an update regarding Police
Department activities for 2019. This update will provide Council and the public with information
regarding community outreach, crime, police operations, homelessness, traffic, noise and
downtown.
At the conclusion of 2019 the Police Department saw a .5% decrease in violent crime and a 4%
decrease in property crime, with a 4% decrease in crime overall. The presentation that will be
presented on March 3, 2020, will highlight the Police Department’s success with intelligence led
policing efforts, review some of the new programs and positions added in 2019, detail some of
the reasons the City of San Luis Obispo experienced a decrease in Part I crime, discuss the Police
Department’s continued community outreach, review noise related calls for service,
homelessness, and briefly discuss some of the continued challenges faced in 2020.
At the beginning of FY 2019-20, police staffing was at 87.5 Full Time Employees (FTE).
Staffing increased by four FTE, bringing the Department’s total to 91.5 FTE. These FTE include
a Field Service Technician, Training and Hiring Coordinator, an Evidence and Property Lead
Technician and a sworn Cannabis Detective.
DISCUSSION
Community Outreach:
The Police Department is incredibly fortunate to have a community in San Luis Obispo that
understands many of the challenges and whole-heartedly partners with the City to work on
challenging issues, change public perception, help prevent crime and establish a safer
community. One of the Police Department’s primary goals is to reduce harm. We reduce harm
by reducing crime and victimization, reducing traffic collisions and increasing multi-modal
safety, strengthening our regional partnerships, strengthening the health and well-being of our
employees, and strengthening our relationship with the community we serve.
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To meet our goal of reducing harm by strengthening our community/police relationship, we
started the Police and Community Together (PACT) in January 2017. PACT represents a
committed and diverse group of community members/advocates that partner with law
enforcement to affect positive social change through dialogue, education and understanding.
Currently, PACT has representation from major groups representing the Jewish, Black, Latino,
Muslim, LGBTQ, Interfaith, Student and Homeless/Mentally Illness communities. The Police
Department has officers that serve as liaisons to each of these groups, then report back monthly
to each other about what each group is working on. The liaisons connect with and learn about
their respective communities, then serve as a conduit between the Police Department and the
community. Additionally, the community works with law enforcement to develop training that is
important for law enforcement to experience, and we in turn, educate them about policing. In
2019, all of our sworn staff attended Principled Policing, received training in helping with people
in crisis, and the Police Department received the Helene and Joseph Sherwood Award for
Combatting Hate from the Anti-Defamation League.
In 2019, the Police Department continued our partnership with the Homeless Services Oversight
Council (HSOC), Transitions Mental Health (TMHA), County Behavioral Health, and the
Sheriff’s Office to address concerns surrounding homelessness and impacts within our
community. The HSOC has proven to be a successful endeavor as we all look for reasonable, fair
and common-sensed solutions to homelessness county-wide. Our partnership with County
Behavioral Health and TMHA has been incredibly successful with the addition of John Klevins
to our Community Action Team (CAT).
Lastly, police officers assigned to neighborhoods continued to attend neighborhood outreach
meetings to discuss current issues and neighborhood safety. Outreach was already in place, such
as the neighborhood officer program, neighborhood outreach and civility effort and Cal Poly
partnerships, and those have and will continue to grow.
Crime:
Overall, the Police Department has had significant success with intelligence led policing efforts.
The City experienced an unprecedented increase in crime in 2015 (21% from 2014 to 2015), and
that trend continued in 2016 (11% from 2015 to 2016). After starting a part time Crime Analyst,
the City realized a 13% reduction in Part I (one) crime1 from 2016 to 2017. Based on the success
of our part time Crime Analyst, the City Council authorized and funded a fulltime benefited
position, which began in early 2019. The Crime Analyst has continued to focus attention on
high-crime locations and high-rate offenders to effectively reduce crime within the community.
In addition, the Crime Analyst works to help Police Department staff and officers understand
when, where, and how to focus limited resources, as well as how to evaluate the effectiveness of
our strategies. Sound public safety analysis has been paramount to our success. In 2019, the
Crime Analyst worked closely with City GIS to develop and implement a crime dashboard that
allows for near real-time analysis of violent and property crimes, interactive mapping and case
summaries. This dashboard has been very successful and has already been used as a model for
other agencies.
1 See PART 1 CRIMES table for crime type and 2018-2019 data
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By the end of 2019, the City realized a .5% decrease in violent crime and a 4% decrease in
property crime, with a 4% decrease in overall Part 1 crime. Throughout 2019, the Police
Department saw a decrease in the number of reported sexual assaults, with a 25% decrease over
2018. Generally associated with more awareness and willingness for victims to report issues, the
#MeToo movement is largely thought to have resulted in more sexual assaults being reported and
thus a large increase in crimes. The positive impact was that victims of sexual assault and rape
were far more likely to report their attacks to police than in previous years. Research has shown
that up to 90% of sexual assault victims on college campuses do not report the crime, making
sexual assault crimes one of the most underreported crimes. We continue to train and be ready to
assist victims of sexual assault.
In 2019 the Police Department saw a significant decrease in the number of residential burglaries,
from 164 in 2018 to 104 in 2019, a 37% decrease. Targeted enforcement, education, social media
reporting and increased officer presence were utilized to address the 2018 increase (59%) in
crime during the past year, and the 37% reduction shows those efforts were fruitful. In the area
of commercial burglaries, the City experienced an increase of 116%, from 80 reported burglaries
in 2018 to 173 in 2019. 79 of the reported commercial burglaries were related to four incidents
at storage units or multi-building locations. Per Department of Justice reporting requirements,
each storage unit, shed or structure is reported separately, even though they may have occurred at
the same time. Adjusting 2019 statistics for this fact and counting each incident as one
commercial burglary would result in an adjusted increase in commercial burglaries of 18%.
The Police Department continued to receive complaints in 2019 regarding adverse homeless
behavior in the downtown. Many of these behaviors can be attributed to substance abuse, mental
illness or a combination of both. In 2018 the Police Department added a full -time mental health
specialist to the CAT. TMHA was awarded the contract from County Behavioral Health and
worked with the Police Department to hire John Klevins. At the conclusion of 2019, after a full
year of collaboration, downtown had a 16% decrease over 2018 in total calls for service and a
12% reduction in homeless calls for service. Downtown Metro Bicycle Officers were returned to
bicycle patrol in April of 2019 as a result of new Officers successfully completing their field
training program. The Downtown Metro Bicycle Team has been instrumental in being a visual
deterrent and enforcement option in the downtown core and also played a large part in the
reduction of calls in the downtown.
The Police Department added two additional resources to further reduce harm in the downtown
area: Sergeant and a civilian Field Services Technician (FST). The Downtown Sergeant has
focused efforts in first-line supervision of the bicycle officers, built collaborative relationships
with numerous organizations including Downtown SLO, the Chamber of Commerce, the
Restaurant and Bar Association and numerous business owners. The civilian FST completed a
field training program at the end of 2019 and has begun handling non-priority calls for service
and proactive policing, in order to create more proactive patrol time for our officers. In the first
five months, since September 20, 2019, the FST responded to 367 calls for service, took primary
responsibility for 171 of those calls and wrote 80 reports. 2020 will be an exciting year as the
culmination of these efforts will be seen in the continued proactive policing and patrols in the
downtown core.
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For the first time in several years, the Police Department became fully staffed (although several
officers remained in training) in June of 2019. Being fully staffed will eventually allow the
Police Department to fill all specialty positions that had been unfilled in the past. These specialty
positions, including Motorcycle, CAT and Bicycle Officers, perform a critical function in the
policing of the City. Having these specialty positions filled will drastically increase the amount
of proactive policing that occurs in the community.
Hiring, for all agencies has continued to be very challenging. Like many law enforcement
agencies, the Police Department is having difficulty recruiting lateral employees. Lateral officers
are through training in about a third of the time (4 months) that it takes fo r a new cadet (12
months) and allow us to reach full staffing sooner. The Police Department has completed a
recruiting video, strengthened our outreach on Social Media and within communities outside of
San Luis Obispo County, implemented a hiring bonus for out of county laterals, and increased
employee morale. These efforts have been successful and have allowed the Police Department to
attract high-caliber candidates when vacancies have occurred.
PART 1 CRIMES
Violent Crime Property Crime
2018 2019 % Change 2018 2019 % Change
Homicide 1 0 -100 Commercial Burglary 80 173 +116
Rape 51 39 -24 Residential Burglary 164 104 -37
Robbery 33 34 +3 Theft from Vehicle 432 434 0
Agg. Assault 103 114 +11 Stolen Vehicle 74 74 0
General Theft 1061 953 -10
Total Year Violent 188 187 -.5 Total Year Property 1811 1738 -4
Total Part I Crime 1999 1925 -4
Police Operations:
Records:
In the Records Division, the number of reports processed went from 7,465 in 2018 to 6,828 in
2019 (9% decrease). The number of citations processed by the Records Division decreased from
6,018 in 2018 to 4,683 in 2019 (22% decrease). The number of Public Records Act requests also
decreased, from 87 in 2018 to 61 in 2019. Although the number of requests was lower, the
requests are becoming far more complex and time consuming to draft a timely response. In
addition, changes to California Law in Senate Bill 1421 and Assembly Bill 748 required all Law
Enforcement Agencies to disclose qualifying reports, audio and video beginning on July 1, 2019.
This new procedure requires the review and redaction of related files, which can be extremely
time consuming and highly technical.
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Property:
In the Property Division, the number of Evidence Items booked in went from 7,035 in 2018 to
7294 in 2019. (4% increase) Discovery Orders processed decreased from 906 in 2018 to 666 in
2019. (26% decrease). Video evidence continues to be an area of significant increase requiring
staff time. This evidence takes a great deal of time to review and produce. WatchGuard video
recorded went from 79,375 in 2018 to 74,294 in 2019. (6% decrease) WatchGuard Video/Cases
booked in as evidence went from 745 in 2018 to 1083 in 2019. (45% increase) The numbers are
by case number, not by the number of videos in each case, which can be upwards of 10-15
videos per case.
Dispatch:
In the Communications Center staff saw an increase regarding the number of calls into the
center. The number of calls increased by 4%, from 106,780 in 2018 to 111,193 in 2019. Calls
for service decreased by 2% from 38,662 in 2018 to 37,943 in 2019. Dispatch reached full
staffing in 2019 for the first time in several years after training several new Dispatchers.
Investigations:
In the Investigations Bureau, the number of cases assigned for follow up by an Investigator went
from 293 in 2018 to 276 in 2019. (6% decrease). With the continued reassignment of the Special
Enforcement Team (SET – four Officers) for the duration of 2019, fewer cases were generated
with this vacancy. In 2019, the Investigations Bureau also had four of the five investigator
positions turnover and start new in the unit, requiring additional training time to become a
proficient investigator. The SET Team has been brought back to the bureau and will be
operating at full capacity in 2020, employing proactive and creative solutions to address chronic
and difficult to solve problems throughout the City.
Staffing:
During 2019, the Police Department lost approximately 13,420 hours due to illness, vacation, on-
duty injuries and other assorted leave types. This total equates to a loss of almost seven officers
for the year. The average uniformed officer handles roughly 900 calls for service per year
assuming full staffing levels, or approximately 1100 calls per year when adjusted for lost time.
Homelessness:
This past year the police department responded to numerous complaints regarding the increase in
transient camp occupancies and locations. The CAT, City Rangers and patrol officers increased
their presence in known transient camp locations to enforce violations committed in their
presence. The challenge law enforcement often faces is when there is no law or city code
violation being committed, but there is considerable nuisance behavior. Being homeless or being
in a group of transients in a space open to the public is not a crime. We have continued to
educate and encourage the public and business owners to contact the Police Department when
they observe violations being committed. In 2019, the Police Department leveraged a Service
Level Agreement created in 2018, to direct which City Department is responsible for posting and
removal of trash from identified camp locations. This agreement provides City departments
guidance in addressing these issues collaboratively and in a timely manner.
In evaluating calls for service pertaining to the homeless population during 2019 (to include
contacts as suspects, victims or witnesses) these contacts decreased by 559 for a total decrease of
7% compared to 2018. Homeless calls for service have risen each year (except a small decline in
2014) from 4307 calls in 2012 to a high of 7591 calls in 2018. Homeless related calls for service
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in 2012 accounted for 14% of all calls for service, and that number has steadily risen each y ear,
to a high in 2018 of 23%. In 2019, the percentage of overall calls for service that are homeless
related dropped for the first time since 2012, to 22%. In 2019 the Police Department’s overall
calls for service decreased by a total of 3% to 31,376 calls. Much of this decrease was seen early
in the year and corresponded to an exceptionally wet winter resulting in lower calls for service
and Officer on-view activity, and to the overall decrease in homeless calls for service for the
year.
One of the challenges the Police Department faced this past year was shortages in patrol, which
had an impact on our downtown bike team and CAT. For the entire year, CAT has only had one
CAT officer and a social worker. The combination of social worker and CAT officer has been a
tremendous success and has provided far more services and outreach than could be possible
working alone. When the Police Department reaches full staffing, a second CAT officer position
will be filled. This will create a future need to identify a funding source for a second social
worker to effectively double the amount of outreach and referral services provided to the
community. Three of the four officers assigned to the downtown metro bicycle team were
reassigned to patrol for the first three and a half months of 2019. This limited some of the
effectiveness the team can have on many of the crimes and negative transient impacts within
downtown.
Traffic:
Vehicle collisions have increased by 12%, with an 11% increase in pedestrian involved
collisions, and a decrease of 18% in collisions involving bicycles. The Police Department has
continued to focus on public outreach related to bicycle safety and primary collision factors
related to these accidents. At the beginning of the 2018 school year, the Police Department
implemented a new warning and education program related to bicycle violations. The goal was
to use warnings when contacting individuals committing bicycle related violations. Officers were
given the option to provide a warning and ask the violator to share the details regarding the
violation they committed to help educate others. The violator was provided a card with the legal
definition of the violation committed and asked that they share this information on Social Media.
The goal of this program was to educate a greater number of individuals, while promoting a
positive police image by helping to educate the public. The reduction in bicycle collisions in
2019 correlates to the increased messaging started in the 2018/2019 school year. The traffic
team also conducted special enforcement related to primary collision factors in bicycle
collisions.
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In 2019, the Police Department received a grant through the Office of Traffic Safety (OTS)
which funded eight special enforcements to address bicycle violations and three two-hour
presentations on bicycle safety. Traffic and patrol continue to collaborate with Public Works as
we examine collision prone locations in our City to address through education, enforcement and
engineering efforts. In 2019, there was an 18% decrease in traffic citations issued and a 9%
decrease in warnings. In 2019 there were 8,853 traffic stops completed, compared to 2018 when
there were 10,224, a 15% decrease. One traffic officer has been vacant due to staffing for the
entirety of 2019, which accounts for approximately 800 traffic stops in a year. In addition, we
had several new officers in training during the first six months of 2019. These factors drastically
reduce the amount of time our officers have to conduct proactive traffic enforcement. DUI
arrests decreased by 31% in 2019, from 329 to 226. The new officers in training, along with the
surge in popularity of various ridesharing services and the implementation of downtown loading
zones has reduced the number of DUI driver’s in the community. We look forward to this trend
continuing in 2020.
Noise:
Party related noise complaints decreased by 15% in 2019. This decrease marks the third year in a
row that the Police Department has seen an all-time low in party related noise complaints since
tracking began in 1998. This decrease is attributed to a variety of efforts made by the Police
Department and building upon past initiatives and campus partnerships. Police Department staff
continued to participate in summer orientation assemblies for over 4,500 incoming Cal Poly
Freshmen and parents. These presentations provide staff with the opportunity to “front load”
incoming students and their supporters with information on living in the City, City laws that are
important to know and how to stay safe.
Neighborhood officers continue to be engaged in community outreach, providing education at
neighborhood meetings and conducting problem-oriented policing at locations before calls for
service are generated. Neighborhood officers also visit properties that have had multiple noise
violations to help educate residents and encourage wise social event planning. We have seen
continued success with the newly instated party registration program which launched in May
2017. In 2019, 339 party registration applications were received and 242 were approved. Of the
approved, only 38 phone warnings were made, and 3 citations were issued to events that failed to
eliminate noise after the warning phone call. A wide variety of messaging methods are used by
the Police Department to reach residents: social media ads, doorhangers, posters/flyers, e-blasts,
in-person presentations, media releases and participation in the Student Community Liaison
Committee.
Lastly, the partnerships with Cal Poly and Cuesta College continue to provide many more
opportunities for the noise and neighborhood wellness messaging. Information shared is
dispersed through many different avenues including, student government, housing, Greek life,
athletics, clubs and Off-Campus Programs.
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Downtown:
Downtown calls for service for daytime activity decreased by 14% and nighttime activity
decreased by 17%. As previously mentioned, the Police Department operated with several
shortages in specialty bicycle and CAT units for portions of the year. When fully staffed, the
daytime bicycle team stays very proactive within the downtown, often handling problems prior
to them being called in by the public. Downtown will continue to be a priority for bicycle
officers, the downtown FST, CAT and all of patrol. In 2019, the Police Department saw a 26%
decrease in officer initiated calls in the downtown, which is attributed to the reassignment of
both the day and nighttime bicycle teams and the impacts of training several new officers
simultaneously.
Downtown officers have been utilizing crime prevention through environmental design
techniques while partnering with Public Works and local businesses to improve conditions such
as lighting, landscape, building maintenance, fencing, programming and traffic flow. By
addressing some of these issues the City and local businesses can deter criminal activity.
Currently there are 14 public cameras placed throughout the City, with the majority used in the
downtown core and City parks.
Conclusion:
Our efforts are shown positively in many areas as demonstrated by the information above. Crime
will continue to be a major priority for the Police Department. After significant increases in
crime in 2015, and 2016, and the implementation of numerous crime reduction initiatives and
community programs, the City has seen a 4% decrease in Part 1 crime for 2019. The Police
Department also saw a 4% decrease in property related crimes for 2019. Property crimes
continue to be a significant issue within the City, and throughout the State. Theft from unsecured
vehicles and residences continue to be a problem within the City. Continued education has
helped with decreasing the trend, which we will continue throughout 2020. These measures will
include directed patrols targeted at problem locations, utilization of stings and undercover
operations to catch criminals engaged in or looking for crimes of opportunity and using print
media, social media and community meetings to educate our citizens to reduce victimization and
increase awareness.
The San Luis Obispo Police Facility was built in 1969 and was originally 9,000 square feet.
Additions since then have increased the usable space to 12,800 square feet. The building is not
ADA compliant, lacks any additional space for evidence storage, staff, equipment, training
space, is not compliant to withstand major natural disasters, has significant plumbing, electrical,
roofing, parking and HVAC issues. These infrastructure needs will be addressed through SLO
Forward, as to not impact police service to the community.
Public Engagement
The public may submit comments in writing at the meeting regarding this item. No other public
engagement was completed.
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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
The Police Department is funded through the General Fund’s annual budget appropriation
adopted by the City Council. All efforts within the report are covered through the annual
program allocations as outlined in the City’s Financial Plan.
ALTERNATIVES
The City Council could choose not to receive and file the report. This is not recommended as
the report provides a record of key crime related statistics and trends that are important for policy
makers and the public to be aware of in our community.
Attachments:
a - 2019 Crime Report Update
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blank.
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Police Department
2018/2019 Crime Report
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Accomplishments
PACT/PEACE/Community Engagement
Online Reporting
Social Media Outreach and Engagement
Homeless Calls for Service down 7% for 2019 (-559 calls)
Peer Support Team Training and Newsletter
Principled Policing/Police Legitimacy Training for all Officers
Cannabis businesses review and background checks
Lowest noise on record for the second consecutive year
Compstat –New dashboard and mapping with GIS for near
real-time crime statistics and trends
FTE Crime Analyst, Property and Evidence Lead, Downtown
Field Service Tech, Cannabis Detective
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Crime Comparison
2018 / 2019
2017 2018 %Dif 2019 %Dif
Murder 0 1 100%0 -100%
Rape 39 51 31%39 -24%
Robbery 23 33 43%34 3%
Agg. Assault 111 103 -7%114 11%
Burglary 172 244 42%277 14%
Larceny 1516 1493 -2%1387 -7%
MV Theft 94 74 -21%74 0%
Part 1 Violent 173 188 9%187 -.5%
Part 1 Property 1782 1811 2%1738 -4%
Total Part 1 1955 1999 2%1925 -4%
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Violent Crime –CA 2018
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Violent crime in CA 2018
After reaching a low in 2014, the violent crime rate
increased by 8.4 percent from 2014 to 2015, 4.1
percent from 2015 to 2016, and 1.5 percent from 2016
to 2017. In 2018, the violent crime rate decreased 1.5
percent.
Between 2013 and 2018, arson increased by 9.7
percent and burglary decreased by 31.9 percent. Over
the same period of time, aggravated assault
increased by 13.7 percent.
Violent crime CA –4.44/1000 SLO 4/1000
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Property Crime in CA 2018
The property crime rate decreased by 5.1 percent
from 2017 to 2018 after decreasing 2.1 percent from
2016 to 2017.
SLO Property crime percentages in 2019 are 80%
larceny, 16% burglary, 4% auto thefts.
Property crime CA –23.6/1000 SLO 38.5/1000
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Traffic
2018 / 2019
2017 2018 %Dif 2019 %Dif
Collisions 534 527 -1%588 12%
Pedestrian 37 28 -24%31 11%
Bike 39 47 21%44 -6%
Traffic Cites 5937 5003 -16%4090 -18%
Warnings 4945 5221 6%4763 -9%
DUI Arrests 364 329 -10%226 -31%
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Noise
2018/ 2019
2017 2018 %Dif 2019 %Dif
Noise Complaints 1483 1439 -3%1228 -15%
Cites 209 204 -2%149 -27%
DACS 456 363 -20%376 4%
UTL 117 140 20%113 -19%
Neg. Violation 661 681 3%559 -18%
Landlord Cites 122 97 -20%84 -9%
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Noise Complaints Past 10 Years
45% Decrease over the past 10 years.
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Total Calls for Service
2009 -2019
Calls for service have increased 11% in the past 10 years.
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2019 Call for Service by Type Item 11
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Homeless SLO
City & County
SLO City 2015 2017 %Dif 2019 %Dif
Sheltered 158 189 20%156 -17%
Unsheltered 324 222 -31%326 47%
Total 482 411 -15%482 17%
SLO County 2015 2017 %Dif 2019 %Dif
Sheltered 392 345 -12%311 -10%
Unsheltered 1123 780 -31%1172 50%
Total 1515 1125 -26%1483 32%
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Homeless Calls for Service
2019 –22% of Citywide CFS
In 2019 there was a 7% decrease from 2018
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Downtown Calls for Service
2019 –13% of Citywide CFS
In 2019 there was a 16% decrease from 2018
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Homeless vs. Downtown Homeless CFS
In 2019 19% of all Homeless Calls for Service occurred in Downtown
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Mental Health Related
Calls for Service
2018/2019 -22% increase
Calls Transported %Transported
2016 288 88 31%
2017 303 111 37%
2018 207 103 50%
2019 252 119 47%
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Top 10 Offenders
Average age is 44 Years Old
Total arrests –229
90% are homeless and refuse services (CAT team)
Violations Include
Alcohol Offenses
Drugs
Trespassing
Smoking in Public Place
Leash Law
Warrants
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Community Action Team (CAT)
Social Worker
John Klevins completed his first year with CAT
Over 582 different individual engaged in the past 16 months
Over 290 new contacts during this period (7/1/19 to present)
99 of these new contacts have engaged in Behavioral Health
Programming (mental health or substance abuse)
82 individuals have received assistance in getting off the streets.
This included:
Relocation to Prado
50 Now Program
Family Reunification
Drug & Alcohol Programs
Over 300 governmental employees (City, County, Parks, Fire, Police,
Library) have received CIT related training from SLOPD CAT
There will be a future need for a second social worker as the second
CAT Officer comes online
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Records
Evidence
2017 2018 %Dif 2019 %Dif
Reports 8073 7465 -7%6828 -8%
Cites 7084 6018 -15%4683 -22%
2017 2018 %Dif 2019 %Dif
Evidence
Booked
7801 7035 -10%7294 4%
PRR 816 906 +10%666 -26%
Video
Evidence
62,815 79,375 +21%74294 -6%
Video
Booked
757 745 -2%1083 45%
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Strategies for Crime Reduction
Intelligence led policing efforts
–New Crime Dashboard
Community outreach and
education
Innovative enforcement
strategies
Online Reporting
CFS reduction initiatives
Focus on downtown
Partnership with residents,
businesses
Continued partnership with
homeless outreach agencies
Cal Poly and Cuesta outreach
and collaboration
Increased enforcement efforts
Added Downtown Sergeant
and Downtown Civilian FST
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Current Challenges
Meeting community needs while addressing increases
in workload
Length of new Officer training program
Homeless and transient impacts
Crime and nuisance
Increased special events/protests
Continued impacts related to changes in California
Law
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Current Projects
Supporting FHRP (Dispatch Consolidation/Contract Feasibility
Study)
Working with the cannabis industry for successful integration in
SLO (expected opening of first storefront in 2020)
Update and extension of the Police Department strategic plan
(Original Plan was 2016-2020)
Development of goals to incorporate regionalism, climate action
multi-modal safety and diversity/inclusion
Crime reduction strategies
Planning for SLO Forward and a new police facility
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QUESTIONS?
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Department Name: Community Development
Cost Center: 4008
For Agenda of: March 3, 2020
Placement: Public Hearing
Estimated Time: 15 Minutes
FROM: Michael Codron, Community Development Director
Prepared By: Cara Vereschagin, Housing Coordinator
SUBJECT: CONSIDERATION OF THE 2020 COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) FUNDING RECOMMENDATIONS
RECOMMENDATION
As recommended by the Human Relations Commission (HRC), adopt a Resolution (Attachment
A) to approve funding allocations for an estimated $496,355 of CDBG funds for the 2020
Program Year.
DISCUSSION
Background
The City’s annual CDBG review process provides Council and the public with an opportunity to
provide early input in the grant award process and assist the City Council with direct input to
prioritize community needs. One of the main purposes of the process is to maintain an open,
inclusive, and fair grant application process. The HRC advises the Council on community needs
and funding recommendations. The four major steps in the 2020 CDBG review process are as
follows:
1. HRC Hosts a “Community Needs Workshop”: The HRC hosted a public hearing on
October 2, 2019, to inform the public about upcoming funding amounts, how to apply for
grants, and to receive community input on grant funding needs. The HRC discussed the
community needs identified during public comment and adopted grant funding priorities for
Council consideration.
2. Council Priority-Setting: On November 19, 2019, the City Council endorsed the HRC’s
recommended CDBG funding priorities for 2020. The priorities established by the HRC and
City Council are listed below:
a. Provide emergency and transitional shelter, homelessness prevention and services.
b. Develop and enhance affordable housing for low and very-low income persons.
c. Promote accessibility and/or removal of architectural barriers for the disabled and elderly.
d. Enhance economic development (to include seismic retrofit, economic stability, low- and
moderate-income jobs).
These priorities were used by staff and the HRC in reviewing the applications to develop their
recommendations for the 2020 CDBG funds:
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3. CDBG Applications Hearing: On December 4, 2019, the HRC held a public hearing to
review the 2020 CDBG applications with respect to the Council’s adopted funding priorities
and forwarded its funding recommendations to the County for inclusion in the 2020 Draft
Action Plan.
4. CDBG Program Hearing: On March 3, 2020, the City Council will hold a public hearing to
consider the HRC’s recommendation as shown in the 2020 Draft Action Plan and adopt
recommendations for projects to be funded during the 2020 CDBG Program Year. This
action will be submitted to the County Board of Supervisors for inclusion in the final 2020
Action Plan and Community Participation Plan for the Urban County.
HRC and Staff Recommended 2020 CDBG Funding Allocations
On December 4, 2019, the HRC recommended funding allocations of $496,355 in 2020 CDBG
funds. The preliminary funding estimate was provided by the County based on available
information from the U.S. Department of Housing and Urban Development (HUD). The table
below lists the applications received and the projects recommended for funding by the HRC,
which are consistent with the previously adopted CDBG Funding Priorities. All of the
applications received by the City for 2020 CDBG funding are included in Attachment B1. The
meeting minutes from the December HRC meeting, which reflect the approval of the staff
CDBG funding recommendations, are provided in Attachment C.
No. Applicant Project 2020 Funding
Recommendation
Public Services (Maximum allocation allowed: 15% of $496,355)
1 CAPSLO 40 Prado Homeless Shelter $74,453
Housing/Public Facilities/Economic Development
2 Peoples’ Self-Help Housing Broad Street Place Apartments $322,631
3
San Luis Non-Profit Housing
Corporation (in collaboration
with HASLO)
Housing for Homeless and Special
Needs/Mental Health Clients $0
4
Stand Strong, formerly the
Women’s Shelter Program of
San Luis Obispo County
Safe Housing (SH) Project $0
Program Administration (Maximum allocation allowed: 20% of $496,355)
5a City of San Luis Obispo
CDBG Program Administration
To administer the CDBG program
and all the approved activities
associated with funding
$17,372
5b City of San Luis Obispo
Housing Capacity Building
To implement programs identified in
the Housing Element related to
providing affordable housing
$17,373
6 County of San Luis Obispo CDBG Program Administration $64,526
Total $496,355
1 The County of San Luis Obispo’s application for CDBG Program Administration is not included in attachment.
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Project Overview and Funding Recommendations
1. Community Action Partnership of San Luis Obispo (CAPSLO) - 40 Prado Homeless
Services Center: CAPSLO has requested $73,269 in CDBG funds to increase the capacity,
range, and efficiency of services offered at the 40 Prado Homeless Services Center; as well
as to increase on-site partnerships with community organizations. The City typically chooses
to fund 100% of the public services allocation of CDBG funds (15% of total) to homeless
shelters and services. This project aligns with the first adopted Funding Priority. The
estimated public services allocation is $74,453 and therefore the HRC is recommending
funding $74,453 to CAPSLO.
2. Peoples’ Self-Help Housing (PSHH) – Real Property Acquisition, for Broad Street Place
Apartments: Peoples’ Self-Help Housing has requested $496,355 of the City’s CDBG money
allocated for Housing projects. This funding will allow for PSHH to acquire real property, in
order to build Broad Street Place Apartments, which consists of 40 units affordable to
extremely low, very low, and low-income veterans. The project includes 1-bedroom, 2-
bedroom, and 3-bedroom units, located at 3750 Broad Street in the City. PSHH has applied
for a variety of additional funding sources, including HOME, County affordable housing in-
lieu fees (i.e. Title 29 Funds), and the County’s CDBG allocation, all of which will help
leverage additional financing from private banks, and a 9% competitive tax credit award by
the California Tax Credit Allocation Committee. This project aligns with the second Funding
Priority and is therefore recommended to receive the City’s CDBG Housing fund allocation
of $322,631.
3. Housing Authority of San Luis Obispo (HASLO) and San Luis Obispo Nonprofit
Housing Corporation (SLONP) – Housing Rehabilitation, for Special Needs Housing
Acquisition: The Housing Authority of San Luis Obispo and their affiliate, the San Luis
Obispo Nonprofit Housing Corporation, are seeking $378,695 of CDBG Housing funds to
assist with the rehabilitation of two existing homes in the City. Both homes have been
operated as affordable, shared housing/group homes for homeless mental health clients for
approximately 20 years. The homes were originally acquired with a private bank loan and
general funds from SLONP and HASLO. All services related to the clients are provided by
Transitions-Mental Health Association. The homes provide a stable affordable, supported
living environment, but cannot continue without rehabilitation. It is not possible to finance
the work with bank funds, as this would cause a substantial increase in rents which clients are
unable to pay. The homes are currently under no regulatory agreement/use restriction. Use of
CDBG would put them in good physical condition & enable a regulatory agreement assuring
long-term use as affordable housing. Although this is an excellent project for CDBG funds,
staff feels that this project could perhaps be a great utilization of City Affordable Housing
Funds for completion.
4. Stand Strong, formerly the Women’s Shelter Program of San Luis Obispo County –
Housing Rehabilitation, for Safe Housing Shelter: Stand Strong is seeking $80,784 of City
CDBG Housing funds for the rehabilitation of their organization’s emergency safe house,
which provides survivors of domestic violence, abused children, and homeless / at-risk of
homelessness persons with supportive services. This project focuses on four key components
of rehabilitation which will overall improve the quality of care provided at the safe house.
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Specifically, this rehabilitation will increase safety, security, and dignity for these clients at
the Stand Strong safe house by providing much-needed, enduring updates to the property
itself. Stand Strong is also requesting $80,785 of the County’s CBDG Housing allocation,
which would allow them to complete the project. Although this is an excellent project, it does
not meet the core CDBG priorities and staff recommends that this project could perhaps be a
great utilization of City Affordable Housing Funds for completion.
5. City of San Luis Obispo – CDBG Administration and Capacity Building: City Community
Development staff are requesting $17,372 for administrative costs of the CDBG program,
and $17,373 for housing capacity building. The capacity building allocation can be used for
affordable housing-related City programs. Staff anticipates using a portion of this funding for
the final touches of the update of the City’s Housing Element. Per the CDBG guidelines, a
maximum of 20% of the total grant allocation can be utilized for program administration.
The City is thus eligible to utilize 35% of the program administration allocat ion for
associated City costs, per the 2018-20 Cooperation Agreement with the County. The two
requests are consistent with the 35% allocation of $34,745.
Policy Context
The recommendation to adopt a Resolution to approve funding allocations for the 20 20 CDBG
Program Year, is supported by several goals, policies, and programs in the City’s Housing
Element and the 2019-21 Housing Major City Goal. For example, Policy 6.21 of the City’s
Housing Element states “actively seek new revenue sources, including State, Federal and
private/non-profit sources, and financing mechanisms to assist affordable housing development
for extremely low, very low and low- or moderate-income households and first- time
homebuyers.” This recommendation is consistent with this policy because CDBG is a Federal
grant program and two of the projects recommended for funding are assisting with providing
shelter and housing development for homeless and/or lower income households.
Public Engagement
Public engagement has been incorporated in every step of the City’s CDBG process, which is
described in the Background section above. All public hearings have been noticed properly and
all outreach has been consistent with the public engagement manual. Additionally, the County of
San Luis Obispo will continue to include the public throughout the remaining steps of the CDBG
timeline.
ENVIRONMENTAL REVIEW
The project is exempt from environmental review per Section 15061 (b)(3) General Rule of the
CEQA Guidelines. The project is an action to award funding.
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FISCAL IMPACT
Budgeted: Yes Budget Year: 2020-2021
Funding Identified: Yes
Funding Sources Total Budget
Available2
Current Funding
Request3
Remaining
Balance
Annual
Ongoing Cost
General Fund
State
Federal: CDBG $453,691 $453,691
Fees
Other:
Total $453,691 $453,691
Decisions made regarding CDBG funding determine how the limited pool of funds the City
receives through the Urban County allocation process is spent. To the extent that projects and
staff efforts are funded through CDBG, the burden on the City’s General Fund and Affordable
Housing Fund to pay for those projects is reduced. As a result, staff time and projects that
receive CDBG funding have a positive fiscal impact on the City. Without CDBG, efforts to
implement policies, programs, and projects to provide affordable housing, as outlined in the
Housing Element and Housing Major City Goal, would have to be funded through City
resources.
ALTERNATIVES
1. The Council may modify the proposed funding amounts.
2. The Council may continue consideration of funding for the 2020 CDBG Program Year. Staff
does not recommend this action because the City’s recommended funding priorities must be
received by the County by the end of March in order to be included in the final 2020 Action
Plan.
Attachments:
a - Draft Resolution
b - COUNCIL READING FILE - 2020-21 CDBG Applications
c - HRC Draft Minutes of December 4, 2019
2 This is an estimation of available funding. Final allocations will be released in the Summer of 2020.
3 Request will be forwarded to the County Board of Supervisors for final approval.
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Resolution No. _____ (2020 Series) Page 1
R ______
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE 2020 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
WHEREAS, the City of San Luis Obispo is a participating jurisdiction in the San Luis
Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Morro Bay, Paso
Robles, Pismo Beach, and the County of San Luis Obispo; and
WHEREAS, said cities and County cooperatively administer several federal grant
programs under the provisions of the Cooperative Agreement executed between the City and
County on September 23, 2014, and under applicable U.S. Department of Housing and Urban
Development Department (HUD) rules; and
WHEREAS, pursuant to said agreement, the Urban County Public Participation Plan, and
HUD rules, the City Council held a public hearing on March 3, 2020, to consider funding
recommendations by the Human Relations Commission (HRC), to review applications for federal
grant funding, and to consider public comments on community needs and the use of such funds;
and
WHEREAS, the Council has considered applications for Community Development Block
Grant (CDBG) funds, public testimony, the Urban County’s proposed One-Year Action Plan, and
the HRC and staff recommendations included in the agenda report; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. 2020 Community Development Block Grant Program Amendments. The
City’s 2020 Community Development Block Grant Program is hereby approved, as shown in
Exhibit A. The Community Development Director is authorized to approve final dollar amounts
once HUD releases allocations with the direction to make up differences in the two amounts. Any
additional increase in funding shall be allocated to Peoples’ Self-Help Housing Corporation’s
affordable housing project once increases for public services (15% of allocation) and program
administration (20% of allocation) have been adjusted.
SECTION 2. Board of Supervisors Consideration. The Council hereby forwards the
above actions to the San Luis Obispo County Board of Supervisors for consideration prior to the
Board’s final action on the Urban County’s 2020 Consolidated Plan.
SECTION 3. Community Development Director Authority. The Community
Development Director is authorized to act on behalf of the City in executing grant agreements and
other actions necessary to implement the approved Consolidated Plan and CDBG Program,
including revisions to funding amounts for the 2020 CDBG Program if the City’s actual CDBG
allocation is different than expected.
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Resolution No. _____ (2020 Series) Page 2
R ______
SECTION 4. Environmental Determination. The project is exempt from environmental
review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). It can be seen with
certainty that CDBG funding allocations could not have a significant effect on the environment.
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 Purington
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 Purington
City Clerk
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Resolution No. _____ (2020 Series) Page 3
R ______
EXHIBIT A
2020 CDBG Funding Recommendations
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Draft Minutes
Human Relations Commission
Wednesday, December 4, 2019
Regular Meeting of the Human Relations Commission
CALL TO ORDER
A Regular Meeting of the San Luis Obispo Human Relations Commission was called to order on
Wednesday,December 4 at 5:00 p.m. in the Council Hearing Room,located at 990 Palm Street,
San Luis Obispo, California, by Chair Welts.
ROLL CALL
Present:Commissioners Renoda Campbell, Bill Crewe,Abe Lincoln, Jeannette
Richardson (arrived at 5:07p.m.), Emily Rosten (arrived at 5:07p.m.),
Vice Chair Michael Hopkins, and Chair Nancy Welts
Absent: None
Staff:Cara Vereschagin, Housing Coordinator
PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
None
--End of Public Comment--
APPROVAL OF MINUTES
1.Consideration of Minutes of the Regular Human Relations Commission Meeting of
October 2, 2019.
ACTION:MOTION BY CHAIR WELTS,SECOND BY VICE CHAIR HOPKINS,
CARRIED 5-0-2 to approve the minutes of the Regular Meeting of the Human Relations
Commission of October 2, 2019.
PUBLIC HEARING ITEMS
2. 2020-21 Community Development Block Grant (CDBG) Program
Chair Welts opened up the item. Vice Chair Hopkins recused himself from the item due to a
conflict of interest and left the Hearing Room. Housing Coordinator Vereschagin presented
the staff report with the use of a PowerPoint presentation and responded to Commissioner
inquiries on the 2020-21 CDBG Program.
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City of San Luis Obispo, Title, Subtitle
Draft Minutes
Human Relations Commission Meeting of December 4, 2019
Page 2
Chair Welts opened the public hearing.
Public Comments
Grace McIntosh –Community Action Partnership of San Luis Obispo County
Steven Orozco –Peoples’ Self-Help Housing Corporation
--End of Public Comment--
Chair Welts closed the public hearing
After the speakers, the HRC deliberated, discussing staff’s recommendation for the allocation
of CDBG funds.
MOTION BY COMMISSIONER LINCLON to reallocate $40,000 from Peoples’ Self-Help
Housing for Broad Street Place to Stand Strong for the Safe Housing Project. The Motion was
not seconded and failed.
ACTION:MOTION BY COMMISSIONER CREWE, SECOND BY COMMISSIONER
CAMPBELL, CARRIED 6-0-1 to move staff’s recommendation for the 2020-21 CDBG
Funding Cycle.
Vice Chair Hopkins returned to the meeting at 5:47p.m.
BUSINESS ITEMS
3.Review the Bylaws of the Human Relations Commission
Housing Coordinator presented the current bylaws of the HRC and the Commission reviewed the
current language for proposed amendments. There was discussion around Article 2,Membership
and Terms of Office, specifically about allocating a seat to a specialized group and including more
inclusive language around the description of members.The Commission also gave direction for the
Diversity Subcommittee and staff to clarify language with the City Attorney and Clerk’s Office.
ACTION:MOTION BY VICE CHAIR HOPKINS, SECOND BY COMMISSIONER
ROSTEN, CARRIED 7-0-0 to approve the bylaws of the HRC, and authorized the Diversity
Subcommittee to add any additional inclusive language around the description of membership.
4.Review of 2018-19 Grants-in-Aid (GIA) Year End Reports
The Commission discussed the year-end reports per their liaison assignments and briefly reported
out on key accomplishments their assigned organizations made use GIA funding.
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City of San Luis Obispo, Title, Subtitle
Draft Minutes
Human Relations Commission Meeting of December 4, 2019
Page 3
5.2020-21 Grants-in-Aid (GIA) Draft Application
Housing Coordinator Vereschagin opened up discussion to review the draft Grants-in-Aid program
application. Commissioners agreed that language should be added stating that applicants should
submit a complete application package and that incomplete applications will not be considered for
funding. Vereschagin made these various corrections to the draft application during the review.
STAFF & COMMISSION COMMUNICATIONS
6.Staff Updates
Vereschagin discussed details of the upcoming Housing Workshop the City was hosting on
December 10, 2019.
7.Commissioner Updates
Chair Welts announced that advisory body recruitment is open for applications through the
Clerk’s Office and encouraged commissioners with expiring terms to reapply if interested.
Commissioner Lincoln announced his resignation from the SLO Noor Foundation.
ADJOURNMENT
Chair Welts adjourned the meeting at 6:30 p.m. The next Regular meeting of the Human Relations
Commission is scheduled for Wednesday, February 5 at 5:00 p.m., in the Council Hearing Room,
990 Palm Street, San Luis Obispo, California
APPROVED BY THE HUMAN RELATIONS COMMISSION: XX/XX/2020
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Department Name: Human Resources
Cost Center: 3001
For Agenda of: March 3rd, 2020
Placement: Business Item
Estimated Time: 10 Minutes
FROM: Monica Irons, Human Resources Director
Prepared By: Brittani Roltgen, Human Resources Analyst
SUBJECT: RESOLUTION OF INTENTION AND ORDINANCE AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SAN LUIS
OBISPO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM TO PROVIDE SECTION
20516 (COST SHARING).
RECOMMENDATION
Adopt a Resolution of Intention (Attachment A) and introduce an Ordinance (Attachment B)
approving an amendment to the contract between the Board of Administration of the California
Public Employees’ Retirement System (CalPERS) and the City of San Luis Obispo.
DISCUSSION
Background
On April 17, 2018, the City Council adopted a Fiscal Health Response Plan (FHRP) that outlines
actions through fiscal year 2020-21 aimed at closing an approximate $8.9 million budget gap due
to CalPERS discount rate reductions resulting in increasing retirement costs to agencies. The
FHRP anticipated employee concessions (anticipated growth of employee wages and benefits at
a rate less than inflation) equaling $1.9M by fiscal year 2020-21. The City’s focus and primary
interests included achieving three-year successor agreements with employee groups that provide
certainty around compensation costs during the FHRP term, increased employee contributions to
retirement costs, and maintaining competitive wages and benefits to support recruitment and
retention objectives.
Status of Negotiations
The City has made significant progress in achieving the employee concession goal as outlined in
the FHRP. Memoranda of Agreement, which include modest cost of living increases (4% over
two years) offset by employees paying 3% more towards retirement costs in 2019 and 2020,
were negotiated and approved by Council with the Police Officers Association (POA), San Luis
Obispo Police Staff Officers Association (SLOPSOA), and the International Association of
Firefighters, Local 3523 (Fire). Resolutions governing unrepresented management, department
heads, appointed officials and confidential employees also included modest cost of living
increases offset by employees paying more towards retirement costs in 2 019 and 2020. These
memoranda include a phased approach of retirement cost-sharing, with 1.5% taking effect the
first full pay period in July 2019, and an additional 1.5% scheduled to take effect the first full
pay period in July 2020.
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Previous Council Action
On May 7, 2019, Council adopted Ordinance No. 1660 (2019 Series) authorizing an amendment
to the contract between the Board of Administration of the California Public Employees’
Retirement System (CalPERS) and the City of San Luis Obispo. This contract amendment
authorized CalPERS to reduce the required employer contribution by 1.5% and increase the
employee contribution by 1.5%.
All employees currently pay the full employee contribution and the additional contributions
agreed to are listed in the chart below:
Police (Sworn) Employee Contribution Levels to PERS Retirement
(Percent of Salary)
Safety PERS Tier Current Jul-20
Tier 1 (3% @ 50) 13.50% 15%
Tier 2 (2% @ 50) 13.50% 15%
Tier 3 (2.7% @ 57) 14.25% 15.75%
Police (Non-Sworn) Employee Contribution Levels to PERS Retirement
(Percent of Salary)
Miscellaneous PERS Tier Current Jul-20
Tier 1 (2.7% @ 55) 12.50% 14%
Tier 2 (2% @ 60) 12.50% 14%
Tier 3 (2% @ 62) 8.50% 10%
Fire (Sworn) Employee Contribution Levels to PERS Retirement
Safety PERS Tier Current Jul-20
Tier 1 (3% @ 50) 10.50% 12%
Tier 2 (2% @ 50) 10.50% 12%
Tier 3 (2.7% @ 57) 14.25% 15.75%
Employee Contribution Levels (includes appointed officials, department heads,
unrepresented management, unrepresented confidential and non-sworn fire employees)
to PERS Retirement
Miscellaneous PERS Tier Current Jul-20
Tier 1 (2.7% @ 55) 9.50% 11%
Tier 2 (2% @ 60) 8.50% 10%
Tier 3 (2% @ 62) 8.50% 10%
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The City is currently in negotiations with San Luis Obispo City Employees Association
(SLOCEA), whose Memorandum of Agreement expired on June 30, 2019 and who are not
currently making any additional contributions to CalPERS.
Cost Sharing of Employer Pension Costs
Additional employee contributions toward the employer’s normal costs are allowed by CalPERS
under section 20516 (Cost Sharing) of the Public Employees Retirement Law (PERL), which is
codified in the California Government Code. If employees agree to cost sharing, Section 20516
allows for additional contributions to be made based on the Memorandum of Agreement or
through a contract amendment with CalPERS. Additional contributions made through
Memorandum of Agreements without a contract amendment with CalPERS will not be credited
to the employees account and CalPERS will not make an adjustment to the employee
contribution rate in future actuarial reports. If there is agreement for additional contributions
through contract amendment, CalPERS will lower the City contribution percentage and increase
the employee contribution percentage by the agreed amount, and this will be reflected in future
billings and actuarial reports. The additional employee contributions made under the contract
amendment would be applied to the employee’s retirement account.
The Police Officers Association (POA) and San Luis Obispo Police Staff Officers Association
(SLOPSOA) negotiated cost sharing to be based on the Memorandum of Agreement and not
through a contract amendment. Fire, Unrepresented Management, and Unrepresented
Confidential Employees agreed to pay the additional contributions through a contract
amendment with CalPERS.
Amending Contract with CalPERS
There are two main steps the City must undertake to complete the contract amendment with
CalPERS:
1. Approve a Resolution of Intention to amend the contract
A Resolution of Intention will be sent to CalPERS immediately upon adoption to initiate
preparation of the Final Contract Amendment for signatures and execution. Accompanying
the Resolution of Intention are also requisite certifications that confirm the City’s compliance
with Government Codes as they relate to the CalPERS contract amendments. These
certifications will also be sent to CalPERS upon completion.
2. Adopt an Ordinance
In addition, an Ordinance must be adopted which amends the contract between CalPERS and
the City addressing the reduction of benefit to employees. The final reading of the Ordinance
is scheduled for May 5, 2020. Typically, CalPERS requires an actuarial valuation to be
completed prior to amending the retirement contract; however, no valuation is required for
the Cost Sharing amendment since the City’s costs will be reduced.
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Public Engagement
The City met with employee groups and agreed to the CalPERS contract amendment. The
Council approved the Memorandum of Agreement with the International Association of
Firefighters, Local 3523 (Fire) and resolutions governing unrepresented management,
department heads, appointed officials and confidential employees.
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: 2020-2021 and ongoing
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding Request
Remaining
Balance
Annual Ongoing
Cost
General Fund ($685,156)
State
Federal
Fees
Other:
Total ($685,156)
CalPERS will reduce the required employer contribution by 1.5% which will result in an
ongoing savings of approximately $685,156 for Fire, POA, SLOPSOA, and the Unrepresented
Management and Confidential groups by the end of fiscal year 2020-2021. These savings are
part of the FHRP’s strategy to close the $8.9M budget gap.
ALTERNATIVES
Do not approve the Resolution and Ordinance. This alternative is not recommended since this
change was approved by Resolutions and negotiated Memorandums of Agreement with employee
groups and failure to amend the contract with CalPERS would place the City in violation of those
agreements.
Attachments:
a - Draft Resolution of Intention
b - Draft Ordinance
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RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF SAN LUIS OBISPO
WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and
their employees in the Public Employees' Retirement System by the execution of a
contract, and sets forth the procedure by which said public agencies may elect to
subject themselves and their employees to amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the
governing body of the public agency of a resolution giving notice of its intention to
approve an amendment to said contract, which resolution shall contain a summary of
the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 20516 (Employees Sharing Additional Cost) of an
additional 1.5% for local miscellaneous members in the International
Association of Firefighters Local 3523, Unrepresented Management
group and Unrepresented Confidential group; an additional 1.5% for
local fire members in the International Association of Firefighters Local
3523; and an additional 1.5 % for local safety members in the
Unrepresented Management group.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give
notice of intention to approve an amendment to the contract between said public
agency and the Board of Administration of the Public Employees' Retirement System, a
copy of said amendment being attached hereto, as an "Exhibit" and by this reference
made a part hereof.
By:_________________________________
Presiding Officer
_________________________________
Title
________________________________
Date adopted and approved
(Amendment) CON-302 (Rev. 3/9/2016 rc)
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c
Exhibit
California
Public Employees’ Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees’ Retirement System
and the
City Council
City of San Luis Obispo
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective July 1,
1952, and witnessed June 9, 1952, and as amended effective October 1, 1962, October
3, 1963, October 1, 1974, June 1, 1976, December 1, 1976, December 20, 1978, January
16, 1980, May 1, 1980, July 1, 1980, July 1, 1983, July 1, 1986, July 23, 1987, November
16, 1989, August 8, 1993, November 5, 1999, January 7, 2000, July 6, 2000, September
21, 2001, March 28, 2002, July 18, 2002, January 30, 2003, February 27, 2003, July 14,
2005, December 29, 2005, August 30, 2012, December 6, 2012 and July 11, 2019 which
provides for participation of Public Agency in said System, Board and Public Agency
hereby agree as follows:
A. Paragraphs 1 through 19 are hereby stricken from said contract as executed
effective July 11, 2019, and hereby replaced by the following paragraphs
numbered 1 through 19 inclusive:
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1. All words and terms used herein which are defined in the Public Employees'
Retirement Law shall have the meaning as defined therein unless otherwise
specifically provided. "Normal retirement age” shall mean age 55 for classic
local miscellaneous members entering membership in the miscellaneous
classification on or prior to December 6, 2012, age 60 for classic local
miscellaneous members entering membership for the first time in the
miscellaneous classification after December 6, 2012 and age 62 for new
local miscellaneous members; age 50 for classic local police members and
for those classic local fire members entering membership in the fire
classification on or prior to August 30, 2012, age 55 for classic local fire
members entering membership for the first time in the fire classification after
August 30, 2012 and age 57 for new local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System
from and after July 1, 1952 making its employees as hereinafter provided,
members of said System subject to all provisions of the Public Employees'
Retirement Law except such as apply only on election of a contracting
agency and are not provided for herein and to all amendments to said Law
hereafter enacted except those, which by express provisions thereof, apply
only on the election of a contracting agency.
3. Public Agency agrees to indemnify, defend and hold harmless the California
Public Employees’ Retirement System (CalPERS) and its trustees, agents
and employees, the CalPERS Board of Administration, and the California
Public Employees’ Retirement Fund from any claims, demands, actions,
losses, liabilities, damages, judgments, expenses and costs, including but
not limited to interest, penalties and attorney fees that may arise as a result
of any of the following:
(a) Public Agency’s election to provide retirement benefits,
provisions or formulas under this Contract that are different than
the retirement benefits, provisions or formulas provided under the
Public Agency’s prior non-CalPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or litigation)
between Public Agency and its employees (or their
representatives) which relates to Public Agency’s election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees’ existing
retirement benefits, provisions or formulas.
(c) Public Agency’s agreement with a third party other than CalPERS
to provide retirement benefits, provisions, or formulas that are
different than the retirement benefits, provisions or formulas
provided under this Contract and provided for under the California
Public Employees’ Retirement Law.
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4. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as are
excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
local miscellaneous members).
5. In addition to the classes of employees excluded from membership by said
Retirement Law, the following classes of employees shall not become
members of said Retirement System:
a. CROSSING GUARDS.
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
in employment before and not on or after January 30, 2003 shall be
determined in accordance with Section 21354 of said Retirement Law (2%
at age 55 Full).
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local miscellaneous member
in employment on or after January 30, 2003 and not entering membership
for the first time in the miscellaneous classification after December 6, 2012
shall be determined in accordance with Section 21354.5 of said Retirement
Law (2.7% at age 55 Full).
8. The percentage of final compensation to be provided for each year of
credited current service as a classic local miscellaneous member entering
membership for the first time in the miscellaneous classification after
December 6, 2012 shall be determined in accordance with Section 21354
of said Retirement Law (2% at age 60 Full).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said Retirement
Law (2% at age 62 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local fire member entering
membership in the fire classification on or prior to August 30, 2012 and for
those classic local police members entering membership in the police
classification on or prior December 6, 2012 shall be determined in
accordance with Section 21362.2 of said Retirement Law (3% at age 50
Full).
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11. The percentage of final compensation to be provided for each year of
credited current service as a classic local fire member entering membership
for the first time in the fire classification after August 30, 2012 shall be
determined in accordance with Section 21363.1 of said Retirement Law (3%
at age 55 Full).
12. The percentage of final compensation to be provided for each year of
credited current service as a classic local police member entering
membership for the first time in the police classification after December 6,
2102 shall be determined in accordance with Section 21362 of said
Retirement Law (2% at age 50 Full).
13. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57 Full).
14. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21573 (Third Level of 1959 Survivor Benefits) for local fire
members only.
b. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members and local police members only
c. Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance) for local safety members only.
d. Section 20965 (Credit for Unused Sick Leave).
e. Section 20042 (One-Year Final Compensation) for classic local fire
members entering membership on or prior to August 30, 2012 and
for those classic local police members and classic local
miscellaneous members entering membership on or prior to
December 6, 2012.
f. Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
g. Section 21024 (Military Service Credit as Public Service).
h. Section 21548 (Pre-Retirement Option 2W Death Benefit).
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i. Section 20475 (Different Level of Benefits). Section 21363.1 (3% @
55 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to local classic fire members entering
membership for the first time with this agency in the fire classification
after August 30, 2012.
Section 21353 (2% @ 60 Full formula) and Section 20037 (Three -
Year Final Compensation) are applicable to classic local
miscellaneous members entering membership for the first time wi th
this agency in the miscellaneous classification after December 6,
2012.
Section 21362 (2% @ 50 Full formula) and Section 20037 (Three -
Year Final Compensation) are applicable to classic local police
members entering membership for the first time with this agency in
the police classification after December 6, 2012
j. Section 20516 (Employees Sharing Additional Cost):
From and after July 11, 2019 and until the effective date of this
amendment to contract, 1.5% for local miscellaneous members in
the International Association of Firefighters Local 3523,
Unrepresented Management group and Unrepresented Confidential
group.
From and after July 11, 2019 and until the effective date of this
amendment to contract, 1.5% for local fire members in the
International Association of Firefighters Local 3523.
From and after July 11, 2019 and un til the effective date of this
amendment to contract, 1.5% for local safety members in the
Unrepresented Management group.
From and after the effective date of this amendment to contract, 3%
for local miscellaneous members in the International Association of
Firefighters Local 3523, Unrepresented Management group and
Unrepresented Confidential group.
From and after the effective date of this amendment to contract, 3%
for local fire members in the International Association of Firefighters
Local 3523.
From and after the effective date of this amendment to contract, 3%
for local safety members in the Unrepresented Management group.
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The portion of the employer’s contribution that the member agrees
to contribute from his or her compensation, over and above the
member’s normal contribution (“Cost Sharing Percentage”), shall not
exceed the Employer Normal Cost Rate, as that rate is defined in the
CalPERS Actuarial Valuation for the relevant fiscal year. If the Cost
Sharing Percentage will exceed the relevant Employer Normal Cost
Rate, the Cost Sharing Percentage shall automatically be reduced to
an amount equal to, and not to exceed, the Employer Normal Cost
Rate for the relevant fiscal year.
15. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on June
1, 1976. Accumulated contributions of Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and
accumulated contributions thereafter shall be held by the Board as provided
in Government Code Section 20834.
16. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
17. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and liabilities
of Public Agency and its employees shall be pooled in a single
account, based on term insurance rates, for survivors of all local fire
members.
b. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and liabilities
of Public Agency and its employees shall be pooled in a single
account, based on term insurance rates, for survivors of all local
miscellaneous members and local police members.
c. A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or of the
periodic investigation and valuations required by law.
d. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
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18. Contributions required of Public Agency and its employees shall be subject
to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the expe rience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
19. Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen days after the end of
the period to which said contributions refer or as may be prescribed by
Board regulation. If more or less than the correct amount of contributions
is paid for any period, proper adjustment shall be made in connection with
subsequent remittances. Adjustments on account of errors in contributions
required of any employee may be made by direct payments between the
employee and the Board.
B. This amendment shall be effective on the _____ day of _______________, ______.
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CITY OF SAN LUIS OBISPO
BY____________________________________ BY______________________________
ARNITA PAIGE, CHIEF PRESIDING OFFICER
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
________________________________
Witness Date
Attest:
________________________________
Clerk
AMENDMENT CalPERS ID #7574628515
PERS-CON-702A
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O ______
ORDINANCE NO. _____ (2020 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF SAN
LUIS OBISPO, CALIFORNIA AND THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
WHEREAS, the City of San Luis Obispo has contracted with the California Public
Employees’ Retirement System (CalPERS) for retirement benefits for its sworn Police Safety,
sworn Fire Safety and Miscellaneous employees since July 1, 1952; and
WHEREAS, over the years, the City has amended its retirement benefit structure to reflect
changes as negotiated during the meet-and-confer process with each bargaining group; and
WHEREAS, the City acted to ensure the retirement pension system is sustainable and
amended the retirement contract to provide reduced benefit second tier retirement formulas for all
employee groups; and
WHEREAS, City employees committed to ensure their retirement pension system is
sustainable by paying their full member contributions as established in the Public Employee
Retirement Law; and
WHEREAS, City Council approved Resolution 10919 ratifying the memorandum of
agreement between the City and the San Luis Obispo Firefighters Local 3523 and authorized an
increase to the employee contribution to CalPERS as allowed in Government Code section 20516
to contribute an additional one and one-half percent (1.5%) toward their retirement costs; and
WHEREAS, City Council approved Resolution 10920 regarding compensation and
benefits for appointed officials, department heads, and management employees and authorized an
increase to the employee contribution to CalPERS, as allowed in Government Code section 20516,
to contribute an additional one and one-half percent (1.5%) toward their retirement costs; and
WHEREAS, City Council approved Resolution 10953 regarding compensation and
benefits for unrepresented confidential employees and authorized an increase to the employee
contribution to CalPERS as allowed in Government Code section 20516 to contribute an additional
one and one-half percent (1.5%) toward their retirement costs; and
WHEREAS, the increased employee contribution for these employee groups would be
effective the first full pay period of July 2020; and
WHEREAS, the City is amending its contract with CalPERS to provide that, pursuant to
Government Code Section 20471, there must be at least a 20-day period between the adoption of
the Resolution of Intention and the adoption of the final Ordinance.
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Ordinance No. _____ (2020 Series) Page 2
O ______
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. That an amendment to the contract between the City Council of the City of
San Luis Obispo and the Board of Administration, California Public Employees’
Retirement System is hereby authorized, a copy of said amendment being attached hereto,
marked Exhibit, and by such reference made a part hereof as though herein set out in full.
SECTION 2. The Mayor of the City of San Luis Obispo is hereby authorized, empowered,
and directed to execute said amendment for and on behalf of said Agency.
SECTION 3. This ordinance shall take effect 30 days after the date of adoption, 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 New Times, a newspaper
published and circulated in the City.
INTRODUCED on the 3rd day of March 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
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