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HomeMy WebLinkAbout04-19-2016 Agenda Packet FINAL Tuesday, April 19, 2016 4:00 PM REGULAR MEETING Council Chamber 990 Palm Street San Luis Obispo Page 1 CALL TO ORDER: Mayor Jan Marx ROLL CALL: Council Members John Ashbaugh, Carlyn Christianson, Dan Rivoire, Vice Mayor Dan Carpenter, and Mayor Jan Marx BUSINESS 1. CONSIDERATION OF A KEG REGISTRATION PROGRAM (CANTRELL / WALLACE – 20 MINUTES) Recommendation Staff recommends to not move forward with a municipal keg registration program and to focus continuing efforts on outreach and enforcement. 2. GOVERNMENT FINANCE OFFICERS FINANCE ASSOCIATION RECOMMENDATIONS FOR THE FINANCE AND INFORMATION TECHNOLOGY DEPARTMENT (JOHNSON / HERMANN – 30 MINUTES) Recommendation Receive and file a report outlining recommendations from the Government Finance Officers Association for the Finance and Information Technology Department. San Luis Obispo City Council Agenda April 19, 2016 Page 2 3. RECONSIDERATION OF COUNCIL DIRECTION TO STAFF REGARDING DEMOCRACY VOUCHER FUNDING FOR MUNICIPAL ELECTIONS (DIETRICK / ANSOLABEHERE – 30 MINUTES) Recommendation Reconsider the Council’s action on March 15, 2016 regarding the citizen proposed “Ordinance to create a system of Democracy Voucher funding for municipal elections” and give direction whether the Council desires staff to review and analyze the proposed ordinance for additional Council consideration. ADJOURN TO THE REGULAR MEETING OF APRIL 19, 2016 San Luis Obispo City Council Agenda April 19, 2016 Page 3 6:00 PM REGULAR MEETING Council Chamber 990 Palm Street CALL TO ORDER: Mayor Jan Marx ROLL CALL: Council Members John Ashbaugh, Carlyn Christianson, Dan Rivoire, Vice Mayor Dan Carpenter, and Mayor Jan Marx PLEDGE OF ALLEGIANCE: Council Member John Ashbaugh PRESENTATIONS 4. ANNOUNCEMENT BY LEE PRICE, INTERIM CITY CLERK, REGARDING ASSISTANT CITY CLERK JOHN PAUL MAIER'S CERTIFIED MUNICIPAL CLERK (CMC) DESIGNATION (PRICE – 5 MINUTES) 5. PRESENTATION BY STEPHANIE STEPHENS REPRESENTING CALIFORNIA PARK AND RECREATION SOCIETY (CPRS), PRESENTING AN AWARD OF EXCELLENCE TO THE CITY OF SAN LUIS OBISPO, REGARDING THE #PIXONPEAKS CAMPAIGN (STANWYCK / MUDGETT – 5 MINUTES) 6. PROCLAMATION - LOVE SLO (MARX – 5 MINUTES) Presentation of a Proclamation to Love SLO commending Chris Blake, Stephanie Buresh and the Love SLO Team of more than 600 volunteers for the hugely successful first annual Love SLO event. 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 April 19, 2016 Page 4 CONSENT AGENDA 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. 7. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Recommendation Waive reading of all resolutions and ordinances as appropriate. 8. MINUTES OF FEBRUARY 16, MARCH 1 AND MARCH 3, 2016 (PRICE / MAIER) Approve the Minutes of the City Council meetings of February 16, March 1 and March 3, 2016. 9. PARKS MAINTENANCE DUMP TRUCK REPLACEMENT, SPECIFICATION NO. 91408 (GRIGSBY / BOCHUM / SHUCK) Recommendation 1. Authorize the Finance Director to purchase a dump trailer and aerator tractor attachment with funding originally approved to purchase a dump truck for use by the Parks Maintenance program. 2. Authorize the solicitation of bids for an aerator tractor attachment and execute an agreement if the lowest responsible bid is within the Fleet Manager’s maximum cost estimate of $35,000.00. 3. Authorize the surplus designation of Fleet Asset No. 9104 Dump Truck and 0131-A4 aerator tractor attachment, by sale, auction, trade-in or other method in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Section 405-L and 480. San Luis Obispo City Council Agenda April 19, 2016 Page 5 10. FLEET REPLACEMENT ACCELERATION (OLSON / GRIGSBY / BOCHUM / SCHMIDT / COX / BETZ / SHUCK) Recommendation 1. Approve acceleration of three vehicle replacements from FY 2016-17 to FY 2015-16 due to the extended period of time between order and receipt; and 2. Approve the lease purchase of one 2016 Pierce Arrow XT PUC 75’ Quint Aerial Fire Apparatus in the amount of $894,650; and 3. Approve the lease purchase of one 2016 International/Tymco Street Sweeper Truck in the amount of $246,817.60; and 4. Authorize the City Manager, Finance Director and City Attorney to execute all related documents on behalf of the city to execute a five year agreement with PNC Equipment Finance to accomplish these two lease purchases; and 5. Authorize the Finance Director to execute the purchase orders in the amounts noted and associated with the fleet replacements; and 6. Approve revenue appropriation of $36,096 from the Fleet Sale of Surplus Property fund and expenditures of $36,096 for Command Vehicle CIP ($16,247) and Ambulance/Squad CIP ($19,849) for new equipment requirements for Ambulance/Squad and Command Vehicle; and 7. Authorize the surplus designation of Fleet Asset No. 9403, a 1991 Pierce 75’ Quint, Fleet asset 0021, a 2000 Chevrolet Tahoe, and Fleet Asset No. 0317, a 1998 Ford E350 Ambulance, Fleet Asset No. 0206 2001 Freightliner/Tymco Sweeper Truck by sale, auction, trade-in or other method in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Section 405-L and 480; and 8. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving the lease purchase of a fire engine and street sweeper from PNC Equipment Finance, LLC and approving the final form of financing documents and official actions.” 11. REQUEST FOR PROPOSALS FOR BUSINESS LICENSE COMPLIANCE SERVICES (JOHNSON / HERNANDEZ) Recommendation Authorize the issuance of a Request for Proposal for Business License Compliance Services and authorize the City Manager to enter into an agreement not to exceed $32,000 for 2015 - 2016 and $30,000 for 2016-2017. San Luis Obispo City Council Agenda April 19, 2016 Page 6 PUBLIC HEARINGS 12. REQUEST FROM THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO REGARDING ISSUANCE OF A TAX-EXEMPT LOAN TO ACQUIRE AND REHABILITATE 55 AFFORDABLE HOUSING UNITS AT 1092 ORCUTT ROAD, 1102 IRONBARK, AND 1363 PISMO STREET (CODRON / WISEMAN – 15 MINUTES) Recommendation 1. Conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA) of 1982 and pursuant to the requirements of the Internal Revenue Code of 1986; and 2. Adopt a Resolution, entitled “A Resolution of the City Council of San Luis Obispo, California, approving the incurring of a tax exempt obligation by the Housing Authority of the City of San Luis Obispo for the purpose of providing financing for the acquisition and rehabilitation of Laurel Creek, Ironbark, and Pismo Buchon Apartments.” 13. REQUEST FROM THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO REGARDING ISSUANCE OF A TAX-EXEMPT LOAN TO DEVELOP 46 AFFORDABLE HOUSING UNITS AT 3680 BROAD STREET (CODRON / WISEMAN – 15 MINUTES) Recommendation 1. Conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA) of 1982 and pursuant to the requirements of the Internal Revenue Code of 1986. 2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving the incurring of a tax exempt obligation by the Housing Authority of the City of San Luis Obispo for the purpose of providing financing for the construction of Iron Works Apartments.” San Luis Obispo City Council Agenda April 19, 2016 Page 7 14. CONSIDERATION OF AN ORDINANCE TO AMEND TABLE 9 OF SECTION 17.22.010 OF THE CITY’S ZONING REGULATIONS TO CONDITIONALLY PERMIT A NIGHT CLUB USE WITHIN THE BUSINESS PARK ZONE IN THE AIRPORT AREA; CONSIDERATION OF A RESOLUTION AMENDING THE AIRPORT AREA SPECIFIC PLAN TO ALLOW A NIGHT CLUB LAND USE (LIVE INDOOR/OUTDOOR ENTERTAINMENT) WITHIN THE BUSINESS PARK ZONE AND APPROVING A USE PERMIT TO ALLOW A NIGHT CLUB (LIVE INDOOR/OUTDOOR ENTERTAINMENT) AND OFF-SITE PARKING AT 855 AEROVISTA PLACE (SLO BREW) (CODRON / COHEN – 90 MINUTES) Recommendation A public hearing to consider the following: 1. Introduce an Ordinance entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Table 9 of Section 17.22.010 of the City’s Municipal Code (Zoning Regulations) conditionally permitting a night club land use within the Business Park (B-P) Zone in the Airport Area Specific Plan Area (CODE-1316-2015).” 2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, amending Table 4.3 of the Airport Area Specific Plan allowing a night club use within the Business Park Zone, approving a night club use permit with off-site parking in the Business Zone at 855 Aerovista Place and adopting a Mitigated Negative Declaration of Environmental Impact as represented in the staff report and attachments dated April 19, 2016 (CODE-1316-2015).” BUSINESS ITEMS 15. MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION (POA) FOR THE PERIOD OF 01/01/2016 - 06/30/2018 (IRONS / ZOCHER – 20 MINUTES) Recommendation Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, adopting and ratifying the Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo Police Officers’ Association for the period of January 1, 2016 through June 30, 2018.” San Luis Obispo City Council Agenda April 19, 2016 Page 8 COUNCIL LIAISON REPORTS (Not to exceed 15 minutes) Council Members report on conferences or other City activities. Time limit—3 minutes each. COUNCIL COMMUNICATIONS (Not to exceed 15 minutes) At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURNMENT Regular City Council Meetings are scheduled for Tuesday, May 3, 2016 at 4:00 p.m. and 6:00 p.m., in the Council Chamber, respectively, 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) 781-7107. 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. Meeting Date: 4/19/2016 FROM: Deanne Cantrell, Chief of Police Prepared By: Christine Wallace, Neighborhood Outreach Manager SUBJECT: CONSIDERATION OF A KEG REGISTRATION PROGRAM RECOMMENDATION Staff recommends to not move forward with a municipal keg registration program and to focus continuing efforts on outreach and enforcement. REPORT-IN-BRIEF The Neighborhood Wellness/Community Civility Report contained a recommendation to research the possibility of implementing a keg registration program. This Civility recommendation under Objective Four: Review enforcement best practices, was assigned to the City of San Luis Obispo. The State of California Alcohol Beverage Control (ABC) has an existing keg registration program that manages all sales of kegged beer. Various local agencies provide education to underage residents and law enforcement provides enforcement of the ABC regulations and nuisance order crimes in the City. Any program developed by the City of San Luis Obispo would include some redundancy of effort already captured by ABC. DISCUSSION Background On May 19, 2015 Council received the Neighborhood Wellness Community Civility Report which detailed six (6) objectives:  Define short-term actions to enhance the quality of life  Define stakeholders’ needs and success  Identify university/city best practices  Review enforcement best practices  Engage stakeholders: review current educational and information efforts ˜ Prepare for sustained engagement to achieve desired vision and goal The Neighborhood Wellness Community Working Group worked to present recommendations associated with the objective that would support the vision and goal of enhancing the quality of 1 Packet Pg. 8 life for all residents (Attachment A.) On December 1, 2015 Council received an update on the City led tasks as identified by the Working Group. Many of the recommended actions or tasks outlined in the Civility Report had been completed or are in the process of implementation (Attachment B.) Staff indicated two recommendations that would be researched and brought back to Council the following calendar year. The Neighborhood Wellness Community Civility Report, Objective Four: Review Enforcement Best Practices acknowledges that both Cal Poly and the City of San Luis Obispo have engaged in many programs to address quality of life and neighborhood wellness. Both organizations have expanded staff dedicated to neighborhood wellness, implemented new programs to address nuisance order and Council has amended ordinances, such as Unruly Gathering, to give the Police Department enhanced tools for enforcement. Listed under Objective Four was the following recommendation: Action: Implement a keg registration program Desired outcome: A reduction in underage alcohol use and an accountability mechanism for persons who serve minors Keg Registration Keg registration is a tool that many states use to identify the individual purchasing a keg of beer. 29 states and the District of Columbia currently have laws that mandate purchaser registration of some kind. In California, ABC provides oversight and enforcement of keg registration. By definition, a keg is a barrel having the capacity of 30 gallons. This size however, is not sold in California. The half barrel which is most commonly purchased in the state, contains 15.5 gallons and dispenses approximately 165 twelve ounce servings. The quarter barrel, known as a pony keg, contains 7.75 gallons. Division 9 and Chapter 16 of the Business and Professions Code (B&P) of the State of California details the regulatory provisions for the distribution, sale and purchase of alcohol. Section 25659.5 details the retail regulations for the sale of kegged beer: Section 25659.5. (a) Retail licensees selling keg beer for consumption off licensed premises shall place an identification tag on all kegs of beer at the time of sale and shall require the signing of a receipt for the keg of beer by the purchaser in order to allow kegs to be traced if the contents are used in violation of this article. The keg identification shall be in the form of a numbered label prescribed and supplied by the department that identifies the seller. The receipt shall be on a form prescribed and supplied by the department and shall include the name and address of the purchaser and the purchaser's driver's license number or equivalent form of identification number. A retailer shall not return any deposit upon the return of any keg that does not have the identification label required 1 Packet Pg. 9 pursuant to subdivision (a). (b) Any licensee selling keg beer for off premise consumption who fails to require the signing of a receipt at the time of sale and fails to place a numbered identification label on the keg shall be subject to disciplinary action pursuant to this division. The licensee shall retain a copy of the receipt, which shall be retained on the licensed premise for a period of six months. The receipt records shall be available for inspection and copying by the department or other authorized law enforcement agency. (c) Possession of a keg containing beer with knowledge that the keg is not identified as required by subdivision (a) is a misdemeanor. (d) Any purchaser of keg beer who knowingly provides false information as required by subdivision (a) is guilty of a misdemeanor. (e) The identification label required pursuant to subdivision (a) shall be constructed of material and made attachable in such a manner as to make the label easily removable for the purpose of cleaning and reusing the keg by a beer manufacturer. (f) The department is authorized to charge a fee not to exceed the actual cost of supplying receipt forms and identification labels required pursuant to subdivision (a). Fees collected pursuant to this subdivision shall be deposited in the Alcohol Beverage Control Fund. (g) As used in this section, "keg" means any brewery-sealed, individual container of beer having a liquid capacity of six gallons or more. ABC provides the keg tags and log books to each retailer who sells kegged beer. Most retailers are only selling the contents of the keg, not the vessel, and require the purchaser to pay a deposit for the keg itself which is then returned to the purchaser when the keg is brought back. Each keg tag has a number which is logged with the purchasers’ name, address, driver’s license number, and date of issue (Attachment C). This information can be obtained by any sworn law enforcement officer from a retailer. 1 Packet Pg. 10 There is no state or national data to show keg registration laws have made an impact on underage consumption. There is some research that has been conducted showing states that have more strict alcohol policies have lower underage consumption rates (example: keg registration, social host laws and suspended driving privileges), but the policies are not well studied and have little or no evidence to support effectiveness (Child Trends, September 2014.) In conversations with the manager of the San Luis Obispo BevMo located on Los Osos Valley Road, he stated that “since the laws changed” [noise and unruly gathering] he doesn’t sell as many kegs to college age individuals. In further discussion he stated the majority of the BevMo sales were going to wedding receptions, keg refrigerators (“kegerators”) and milestone birthday parties for older adults. The manager also indicated BevMo sells an average of 10 kegs per week with the purchaser, on average, being 40 years of age. Outreach to Campus Bottle, 290 California and Cork n’ Bottle, 774 Foothill provided similar 1 Packet Pg. 11 information. Campus Bottle is averaging a sale of 15 kegs per week and Cork n’ Bottle sells an average of 10 per week. The manager of Cork n’ Bottle stated that ¾ of their “cheap beer” keg sales are to college age individuals and ¼ is “good beer” sales to individuals with kegerators or for weddings and celebrations. Both owners stated that the price of kegs has increased over the years and during the summer months, keg purchases are almost non-existent to the student age population. Since San Luis Obispo is a destination location for weddings and special events, there continues to be a market for keg purchases; however, this is typically not the target demographic as it relates to quality of life issues in the neighborhoods or addressed as part of the Civility report. Current Trends Staff obtained data via a survey sent out to students of Cal Poly and Cuesta College with the following questions asked: 1. Have you ever attended an off-campus social gathering where keg beer was served? 2. Have you ever hosted a social gathering where keg beer was provided? 3. Have you ever purchased a keg of beer for a social gathering? “Social gathering” for purposes of the survey was defined as follows: birthday parties, theme parties (i.e. Halloween), club gatherings, Greek events, athletic team gatherings, religious study groups and group video gaming. 1,451 responses were received and the table below indicates answers to the survey question. Yes No I don’t know No response Question 1 915 347 27 162 Question 2 414 872 0 165 Question 3 287 1001 0 163 Of the responses to Question 1, 70.99% of respondents indicated they had attended one or more social gathering where keg beer was present. While the survey indicates kegs are being purchased and are being used at social gatherings, the patrol staff of SLOPD indicates keg beer is the least common form of alcohol found at noisy party complaints. Additionally, if keg beer is present, other ordinances are in place to deal with individual open container or underage drinking violations. Enforcement ABC enforces the state keg registration and other alcohol related laws. ABC also has a division called TRACE (Target Responsibility for Alcohol Connected Emergencies) that is focused enforcement by ABC investigators to determine where alcohol was acquired, purchased or served. Should a significant alcohol related crime take place, whether involving a keg or other 1 Packet Pg. 12 form of dispensed alcohol, TRACE would be a resource to the police department to investigate the matter further. Additionally, ABC along with local law enforcement conducts periodic Minor Decoy and Shoulder Tap operations to deter the furnishing of alcohol to minors. The 4th Amendment of the Constitution is very clear providing the legal standards necessary for law enforcement to enter private property for the purposes of conducting a search and seizure of property. Police must have consent of the owner or be presented with exigent circumstances to enter or possess a warrant issued by a judge allowing entry. In the instance of a party on private property that may have a keg, unless any of the standards above were met, police officers would not have access to the keg. The significance of the offense would merit the determination of either exigency or the issuance of a warrant; however, low level alcohol related crimes or offenses associate with quality of life issues typically do not rise to this need or standard. Nonetheless, there are several existing laws which have been useful tools for law enforcement.  Social Host Ordinance MC 9.05.010 passed by council in 2009, disallows any person to host a gathering where underage people are possessing and/or consuming alcoholic beverages. A violation of this ordinance is a misdemeanor.  Unruly Gathering Ordinance MC 9.13.030, passed by Council in 2010 and amended in 2015, disallows the hosting or participation in a gathering deemed unruly.  Minor in Possession (MIP) Business & Professions Code 25662 prohibits individuals under the age of 21 from possessing alcoholic beverages, is a misdemeanor and goes on the individual’s permanent record. In addition, Vehicle Code 13202.5 provides that an MIP conviction results also in a one-year suspension of the minor’s driver’s license or a one-year delay in the opportunity to obtain a license if not yet a licensee.  Possession of Open Containers or Consumption of Alcoholic Beverages MC 9.04 prohibits the possession or consumption of alcoholic beverages by individuals of legal age in public spaces. In addition to these enforcement tools, SLO County Drug and Alcohol Services, Cal Poly Health Services and Cal Poly Dean of Students Office provide excellent education for the student age population of San Luis Obispo. The Student Community Success Program which launched in 2014, is mandatory for Cal Poly students who have off-campus alcohol violations (open container, MIP, DUI, etc.) The program educates students on how their choices are not only detrimental to their health and safety but also how it can negatively affect their neighborhood and community. Cal Poly Health Services does a great deal of campus outreach to educate and encourage students to make healthy decisions. New Student Orientation programs also focus on healthy decision making and the Aware Awake Alive program helps educate students on how to help friends and roommates should individuals over-consume. A keg registration process is already in place under the oversight of ABC. The San Luis Obispo Police Department has access to keg purchaser information should it become material as part of an investigation. The net value of what a keg registration program will achieve in the form of reducing underage drinking, excessive alcohol consumption or other associate crimes and quality 1 Packet Pg. 13 of life issues does not present a valued use of existing resources, time or expense. Staff recommends Council not move forward with a municipal keg registration program and maintain focus on continuous outreach and education while also enforcing existing regulations. CONCURRENCES The Finance and IT Department and City Attorney concur with the recommendations in this report. FISCAL IMPACT Creating a keg registration program would have a significant impact on existing staff resources to implement, monitor and continuously operate. There would be associated expenses with clerical and administration costs to fully support a program. ALTERNATIVES 1. Direct staff to return to Council with options for a local keg registration program and financing options. 1 Packet Pg. 14 May 12, 2015 The Honorable Jan Marx Mayor City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Dr. Gil Stork Superintendent/President Cuesta College Highway 1 San Luis Obispo, CA 93403 Dr. Jeffrey D. Armstrong President Cal Poly State University 1 Grand Avenue San Luis Obispo, CA 93407 Dear Mayor Marx, Drs. Stork and Armstrong: On behalf of the Neighborhood Wellness/Community Civility Effort working group, we are pleased to present our final report for acceptance. The report contained with this letter is the result of 18 months of collaboration and discussions among residents, students, university and college staff, and City leadership. The action plans and timelines for implementation contained within this report are the result of a consensus agreement by all members of the working group, and these actions will result in improved neighborhood wellness in San Luis Obispo. All groups are ready to begin implementation, upon acceptance of this report. We welcome your suggestions to the report’s action items. The Student Community Liaison Committee is the body identified in this process to consider modifications during their oversight of this plan’s implementation. Thank you for the opportunity to serve the San Luis Obispo community! Sincerely, Keith B. Humphrey, Ph.D. Sandee L. McLaughlin Vice President for Student Affairs Vice President for Student Services & College Centers Cal Poly Cuesta College Enc. 1.a Packet Pg. 15 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) San Lui s Obi spo Neighborhood Wellness/Community Civility Effort FINAL REPORT Spring 2015 - Enhancing the quality of life for all residents - 1.a Packet Pg. 16 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 2 TABLE OF CONTENTS OVERVIEW ................................................................................................................................................. 3 PROCESS ..................................................................................................................................................... 4 OBJECTIVE ONE: Define short-term actions to enhance the quality of life .............................................. 5 OBJECTIVE TWO: Define stakeholders’ needs and success ....................................................................... 7 OBJECTIVE THREE: Identify university/city best practices ................................................................... 10 OBJECTIVE FOUR: Review enforcement best practices .......................................................................... 17 OBJECTIVE FIVE: Engage stakeholders: review current educational & information efforts .................. 23 OBJECTIVE SIX: Prepare for sustained engagement to achieve desired vision & goal ............................ 25 APPENDIX A: Working Group Membership ........................................................................................... 28 APPENDIX B: Council Agenda Report .................................................................................................... 29 APPENDIX C: Full Survey Report ........................................................................................................... 54 APPENDIX D: Matrix of All Action Items .............................................................................................. 70 APPENDIX E: Post March 7 Recommendations ...................................................................................... 76 APPENDIX F: Maintaining Balanced Neighborhoods Report .................................................................. 79 1.a Packet Pg. 17 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 3 OVERVIEW ith the focus of making San Luis Obispo an even more vibrant community for residents and students to reside in, community representatives, Cal Poly and Cuesta College administrators, students and San Luis Obispo city staff have worked side by side to coordinate their efforts through the Neighborhood Wellness/ Community Civility Effort. The effort was launched in May of 2013 with the support of the San Luis Obispo City Council, Cal Poly President Jeffrey Armstrong, and Cuesta College President/Superintendent Gil Stork. This initiative aimed to discuss the changing culture of neighborhoods in San Luis Obispo resulting from the shifts of owner-occupied households to the increase in rental units, specifically by student-aged individuals. Collectively, the working group has a vision of building “a community in which year-round residents and students actively collaborate to build community and communicate in an environment that fosters mutual respect and understanding.” The unified goal of the working group has been to develop ideas for stakeholder consideration that are intended to “ enhance the quality of life for all residents.” The group responded to the six objectives created by the San Luis Obispo City Council with subsequent recommendations, desired outcomes, implementation leads and partners, and timelines for implementation. The objectives are outlined below, and each is addressed thoroughly in this report. Define short-term actions to enhance the quality of life Define stakeholders’ needs and success Identify university/city best practices Review enforcement best practices Engage stakeholders: review current educational and information efforts Prepare for sustained engagement to achieve desired vision and goal W From the recommendations above and active collaboration within the working group, three overall themes emerged: Increase communications from Cal Poly and Cuesta College Develop responses through solution-oriented initiatives Set in motion proactive measures to avoid repeating past mistakes and preventing new problems from occurring 1.a Packet Pg. 18 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 4 PROCESS Beginning work in October of 2013, the Neighborhood Wellness/Community Civility Effort working group conducted a thoughtful study of the objectives outlined by the San Luis Obispo City Council and created a process to efficiently move the community into action. Champions were assigned to each objective, and the subsequent 13 meetings, hosted by Cuesta College, were devoted to discussions of the objectives, led by the champions. Champions for the objectives are presented below: Note: Names in parentheses denote past working group members. During the robust discussions for each objective the entire working group offered feedback on the work of the champions and direction on how to proceed. Each group returned to conduct further studies based on the feedback and direction of this group. The champions provided recommendations to the working group in late 2014. Each of the recommendations were discussed and affirmed during the monthly meetings, which focused specifically on one particular objective. It is those recommendations that are presented in this report. OBJECTIVE ONE: Karen Adler, Julie Towery OBJECTIVE TWO: Katie Lichtig, Joi Sullivan (Jason Colombini), Dr. Anthony Gutierrez, Ju v ent i no Or t i z OBJECTIVE THREE: Derek Johnson, Stephanie Teaford (Justin Wellner, Betsy Kinsley) OBJECTIVE FOUR: Joe Arteaga, Steve Gesell, George Hughes, Chris Staley, Brenda Trobaugh OBJECTIVE FIVE: Scott Chedester (Charles Scovell), Dr. Anthony Gutierrez, Kimberly Hampton, Joi Sullivan (Jason Colombini), Christine Wallace OBJECTIVE SIX: Dr. Keith Humphrey, Sandee McLaughlin 1.a Packet Pg. 19 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 5 Goal To define short-term actions that could be implemented to enhance the quality of life for all residents, particularly associated in the timeframe around the start of Cal Poly’s fall term. OBJECTIVE ONE: Define short-term actions to enhance the quality of life Champions Karen Adler, Community Julie Towery, Community Background Historically, there has been an increase in calls for service around the neighborhood areas adjacent to Cal Poly coinciding with start of the school year. This objective is set to define what short-term actions could lead to positive long-term effects during that timeframe. Short-term actions are also distributed among all objectives, thus are not exclusive to objective one. Recommendations Schedule regular neighborhood tours with city council, mayor, neighbors, Cal Poly and Cuesta College leaders, etc. Investigate establishing Student Nighttime Auxiliary Patrol (S.N.A.P.) Ride-Along program and promote current Police Ride Along program Explore the option of creating a noise ordinance in public spaces on streets and sidewalks for gatherings of more than 50 people by issuing citations or other alternative options Consider expanding tools to enforce ordinances for nuisance properties including, but not limited to, “tagging” properties that meet a definition of a public nuisance or unruly gatherings in terms of both property-maintenance concerns and behavior issues Evaluate policies so that new development or redevelopment does not unduly impact neighborhoods 1.a Packet Pg. 20 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 6 Actions Desired Outcomes I mpl ement at i on Leads & Partners Timeline for Implementation Schedule regular neighborhood tours with city council, mayor, neighbors, Cal Poly and Cuesta leaders, etc. Allow neighbors to point out neighborhood issues Cal Poly Ongoing, began Summer of 2014 Investigate establishing S.N.A.P. Ride-Along program and promote current Police Ride Along program Increase the amount of support to assist with complaints and allow officers to do other police work City of San Luis Obispo Fall 2015 Explore the option of creating a noise ordinance in public spaces on streets and sidewalks for gatherings of more than 50 people by issuing citations or other alternative options Decrease number of noise complaints City of San Luis Obispo Spring 2016 Consider expanding tools to enforce ordinances for nuisance properties including, but not limited to, “tagging” properties that meet a definition of a public nuisance or unruly gatherings in terms of both property- maintenance concerns and behavior issues Hold repeat noise violators accountable City of San Luis Obispo Spring 2016 Evaluate policies so that new development or redevelopment does not unduly impact neighborhoods. Decrease properties that allow for high occupancy City of San Luis Obispo Fall 2016 1.a Packet Pg. 21 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 7 OBJECTIVE TWO: Define stakeholders’ needs and success Champions Dr. Anthony Gutierrez, Cuesta College Katie Lichtig, City of San Luis Obispo Juventino Ortiz, Community Joi Sullivan (Jason Colombini), Cal Poly Goal For Cal Poly, Cuesta College and the City of San Luis Obispo to use the results of the community-wide survey to suggest efforts for implementation to address community-defined issues. Background The purpose of this objective is to identify the stakeholders’ needs and suggest solutions so that the outcomes reflect a desired environment for the community. To obtain a comprehensive assessment of the community’s needs and what success looked like, a communitywide survey was mailed in May of 2014. A total of 3, 774 surveys were completed and returned, physically and electronically. Of the completed surveys, 1,706 were from non- student residents, 1,783 were from individuals identifying themselves as either Cal Poly or Cuesta students, and 318 individuals did not associate themselves with any group. The full survey results and discussion is offered in Appendix C. Recommendations The assessment results provided a clearer picture of the stakeholder perceptions, which helped develop potential recommendations, such as: Evaluate best practices and implement strategies to reduce the number of disruptions from parties and noise in neighborhoods (as referenced in Objective Three) Develop and implement a rental housing inspection program Implement a range of strategies to change the relationship and culture between students and non-students in neighborhoods Explore and implement strategies to address the concentration of bars in the downtown area and related safety issues. Consider using strategies identified in the Land Use and Circulation Element (LUCE) update to achieve this objective Implement educational programs to increase the number of student-aged residents who bring in their trashcans on the same day the trash is picked up Implement strategies to reduce traffic issues in neighborhoods. Consider using strategies identified in the Land Use and Circulation Element update to achieve this objective 1.a Packet Pg. 22 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 8 Continue to implement strategies to address homelessness in San Luis Obispo (particularly in the downtown area) Actions Desired Outcomes Implementation Leads & Partners Timeline for I mpl ement at i on Evaluate best practices and implement strategies to reduce the number of disruptions from parties and noise in neighborhoods (as referenced in Objective Three) Reduce noise disruptions Cal Poly and Cuesta College (programmatic) City of San Luis Obispo (enforcement) Fall 2015 Develop and implement a rental housing inspection program Insure that rental units comply with required minimum health and safety standards City of San Luis Obispo Fall 2016 Implement a range of strategies to change the relationship and culture between students and non-students in neighborhoods (no specific recommendations discerned from the survey results) Improve student and community relationships Cal Poly Associated Student, Inc. (ASI) and Associate Students for Cuesta College (ASCC) Spr i ng 2016 Explore and implement strategies to address the concentration of bars in the downtown area and related safety issues. Consider using strategies identified in the Land Use and Circulation Element update to achieve this objective Address and decrease safety-related issues City of San Luis Obispo Ongoing per LUCE strategies Implement educational programs to increase the number of student-aged residents who bring in their trashcans on the same day the trash is picked up Increase the number of student-age residents to comply with the 24-hour ordinance City of San Luis Obispo Ongoing Continue to implement strategies to address homelessness in San Luis Obispo (particularly in the downtown area) A reduction in the impacts of homelessness on the community City of San Luis Obispo Ongoing 1.a Packet Pg. 23 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 9 Implement strategies to reduce traffic issues in neighborhoods. Consider using strategies identified in the Land Use and Circulation Element update to achieve this objective Reduce traffic-related issues in neighborhoods City of San Luis Obispo Ongoing 1.a Packet Pg. 24 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 10 OBJECTIVE THREE: Identify university/city best practices Champions Derek Johnson, City of San Luis Obispo Stephanie Teaford (Betsy Kinsley, Justin Wellner), Cal Poly Goal To identify best practices that can be undertaken by Cal Poly, in collaboration with the City of San Luis Obispo, to enhance positive interactions between students and permanent residents. Background Universities and colleges across the nation impact the communities in which they exist in both positive and negative ways. The impact of students in residential neighborhoods has prompted higher education institutions to share best practices that can lead to improvements in community relationships and mitigate negative impacts. The objective explored various programs and efforts undertaken by universities and colleges nationwide. The following recommendations could provide a framework for improving relations between student residents and permanent residents of San Luis Obispo. 1.a Packet Pg. 25 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 11 Recommendations To address student rental properties Create and implement a transition to Off-Campus Living Education Program, to be shared with Cuesta College’s Student Life Office Include expectations and responsibilities of living in neighborhoods in the City of San Luis Obispo (e.g. local ordinances) The successful completion of a culminating test will result in a Preferred Renter Certification with potential benefits offered by landlords Work with the city to generate a neighborhood map of housing rental properties and provide outreach to student renters by funding welcome bags for neighbors to distribute to establish positive interactions (University of Colorado, Boulder) Create a Renter/Rental Housing Inspection Program. Students and landlords can work together for preferred renter/rental designation o Beautification Program: “Door Decal” or “Golden Arrow” for upkeep of property and meeting standards for appearance and safety o Student Affairs Awards: Awarded yearly to no-complaint housing (LaSalle University) o Preferred rental properties listed with the city o Request the release of judicial information to off campus entities (Plymouth State University) 1.a Packet Pg. 26 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 12 To alleviate nighttime noise and to build compassion and understanding Develop outreach and marketing efforts toward students (University of Massachusetts, Amherst) Implement a Party Registration Program. Develop a program to incentivize party registration that provides the opportunity for the San Luis Obispo Police Department to contact the party registrant and offer a 20-minute warning before dispatching S.N.A.P. or a police officer. This provides the students a way to minimize impacts on enforcement resources (University of Colorado, Boulder) Initiate Dialog Dinners or Block Parties for students and residents to talk about what they like most about their neighborhoods (University of Colorado, Boulder) Promote the principles of the The Mustang Way in neighborhoods: o Student Neighborhood Liaisons: Block parties/events for networking. (University of Minnesota, Twin Cities & Towson University) o Neighborhood Helping Hands: Volunteerism for neighbor assistance (e.g. fruit picking, ladder needs, barn raising, etc.). Coordinate with campus departments to provide Learn by Doing experiences within neighborhoods for senior projects and other work-related majors such as horticulture, landscape architecture, construction management and others. o Peer-to-peer engagement for neighborhood policing; “Walk this Way Program” (University of Massachusetts, Amherst) 1.a Packet Pg. 27 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 13 To improve collaboration and understanding among students, non-students and city groups, and to increase engagement in problem solving Continue to engage and communicate collaboratively among students, non-students and city groups. See Student Community Liaison Committee (SCLC), below. Utilize various on-campus departments and offices that support living off-campus (Off- Campus Student Life; Cuesta College Student Life and Leadership; Student & Community Relations; Office of Neighborhood Life; Student Neighborhood Relations; Neighborhood University Relations and Neighbors; and Student Life and Leadership at Cuesta College) to: o Support all students, non-students, and permanent residents in the communities surrounding Cal Poly o Educate students about university policies and local ordinances o Continue to build and strengthen neighborhood relations by facilitating dialogue o Promote civic citizenship to create a positive quality of life for everyone living in the neighborhoods (Georgetown University) o Specific communications and strategies could include: A 100 percent response policy for any time, any issue, by enforcing a prompt and meaningful response The police provide a blueprint that lets students and neighbors know exactly what to expect when a community concern is registered with the university The policy will establish a standard for reporting an incident (through a university helpline); clear steps that would be taken for follow-up with the student (through an updated sanction chart) and community members; and what data would be collected to create a metric to evaluate student success and outcomes (Georgetown University) Sustained conflict resolution services such as “ SLO Solutions,” a jointly sponsored citywide conflict-resolution program specifically designed to address student-neighbor issues and provide a means for constructive resolution. Since 2004, this program has used the services of Creative Mediation to resolve a variety of community disputes at no cost to those seeking mediation Sustained SCLC effort. For more than 20 years, Cal Poly’s Associated Students, Inc. (ASI), Associated Students of Cuesta College (ASCC), and the city have served as leaders on the committee. It was established to further student and community communication and develop positive relationships 1.a Packet Pg. 28 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 14 Neighborhood Concerns Phone Line: Neighbors can call in with concerns. Cal Poly and Cuesta College staff can recommend actions and contact students (Colorado University, Boulder) Quarterly walkabouts and coffee sessions with city residents and representatives from Cal Poly, Cuesta College and the city One-hour walkabouts will be scheduled, every third month and will take place at various times throughout the neighborhoods surrounding the campus. During these walks they will explore student housing rentals, party atmosphere, traffic impacts and Greek housing One-hour coffee sessions or “listening sessions” will be scheduled every third month, in the afternoon, at a local venue to discuss such topics as the Cal Poly Master Plan and vision for the future, diversity and inclusivity, students in the community, and year- end accomplishments and challenges Develop proactive engagement of law and code enforcement with visits to properties of concern; “Knock and Talk” (University of Maryland). Implement a Joint Letter Program. Police contact with students in off-campus housing who generates letters signed by the university, police and city that outlines expectations. It is sent to the resident and landlord (University of Oregon) o Tagging for repeat offending or problem properties 1.a Packet Pg. 29 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 15 Actions Desired Outcomes I mpl ement at i on Leads & Partners Timeline for I mpl ement at i on Create and implement a transition to Off-Campus Living Education Program, to be shared with Cuesta College’s Student Life Office Set expectations and responsibilities for students living in neighborhoods in the City of San Luis Obispo Cal Poly Summer 2015 Work with the city to generate a neighborhood map of housing rental properties and provide outreach to student renters by funding welcome bags for neighbors to distribute to establish positive interactions Establish positive interaction with City Cal Poly ASI , ASCC, City of San Luis Obispo Spr i ng 2016 Create a Renter/Rental Housing Inspection Program Rental properties that meet minimum health and safety standards Cal Poly, City of San Luis Obispo Spr i ng 2016 Develop outreach and marketing efforts toward students Raise awareness of the impacts of noise on neighborhood Cal Poly Spring 2016 Implement a Party Registration Program. Develop a program to incentivize party registration that provides the opportunity for the San Luis Obispo Police Department to contact the party registrant and offer a 20- minute warning before dispatching S.N.A.P. or a police officer Fewer noise citations City of San Luis Obispo Spr i ng 2016 Initiate Dialog Dinners or Block Parties for students and residents to talk about what they like most about their neighborhoods Create positive interactions between students and year- round residents Cal Poly ASI, ASCC Ongoing Promote the principles of the The Mustang Way in neighborhoods Enhance a positive culture of peer-to-peer accountability in neighborhoods Cal Poly ASI Ongoing 1.a Packet Pg. 30 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 16 Continue to engage and communicate collaboratively among students, non-students and city groups Improve collaboration and understanding among students, non- students and city groups SCLC Ongoi ng Utilize various on-campus departments and offices that support living off-campus to support students, non- students and permanent residents living in neighborhoods. Educate students about university policies and ordinances, strengthen neighborhood relations by facilitating dialogs Cal Poly & Cuesta College Fall 2015 Develop proactive engagement of law and code enforcement with visits to properties of concern; “Knock and Talk”. Positive engagement with law enforcement and decrease repeat offending properties City of San Luis Obispo Ongoing Implement a Joint Letter Program. Police contact with students in off-campus housing generates letter signed by university, police and city that outlines expectations sent to resident and landlord Cal Poly Fall 2015 1.a Packet Pg. 31 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 17 Goal That Cal Poly, Cuesta College and the City of San Luis Obispo police departments consider implementing strategies to address community civility and quality-of-life matters. OBJECTIVE FOUR: Revi ew enforcement best pract i ces Champions Joe Arteaga, Cuesta College Steve Gesell, City of San Luis Obispo George Hughes, Cal Poly Chr i s Staley , Ci ty of San L ui s Obi spo Brenda Trobaugh, Cal Poly 1.a Packet Pg. 32 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 18 Background In the past several years, both Cal Poly and the City of San Luis Obispo have engaged in numerous programs to address quality of life and community wellness. Both organizations have expanded professional staff dedicated to neighborhood wellness, created and modified ordinances, and implemented new programs to address pubic disorder and nuisance crimes including but not limited to: Amendments to the noise ordinance In 2010 the San Luis Obispo Police Department made recommendations to the city council regarding changes to the existing noise ordinance to improve noise reduction efforts. The modifications included reducing the number of allowable warnings to one every six months and to hold residential property owners responsible for repeat noise violations. Many landlords have since added language to their lease and rental agreements with penalties levied to their tenants who receive noise violations. These modifications were accepted by city council and noise complaints were significantly reduced by 30 percent for the following year and have been maintained since (see Table 1 below). Table 1: Total noise party violations reported from 2009 to 2014. 2009 2010 2011 2012 2013 2014 Noise Violations 2584 2238 2013 1644 1672 1729 0 500 1000 1500 2000 2500 3000 Noise Party Violations 1.a Packet Pg. 33 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 19 Unruly Gathering Ordinance In 2010 the San Luis Obispo Police Department conducted research on Unruly Gathering Ordinances. After extensive research and outreach to the community and Cal Poly, an Unruly Gathering Ordinance was proposed and accepted by the city council. The ordinance was intended to prevent substantial disturbances on private property in a neighborhood. This included unlawful and disruptive behavior by large groups of people. On April 6, 2010, the city council adopted section SLMC 9.13.030 Prohibition of Unruly Gatherings. A violation of the Unruly Gathering Ordinance consists of hosting a gathering on private property that: Involves 20 people or more; and Involves unlawful conduct that creates a substantial disturbance in a significant segment of a neighborhood. “Unlawful conduct that results in a substantial disturbance can include such things as excessive noise, public drunkenness, serving alcohol to minors, fighting, urinating in public, crowds overflowing into yards, sidewalks, or streets, or similar unlawful behaviors.” Neighborhood Officer Program The San Luis Obispo Police Department initiated its Neighborhood Officer Program on December 1, 2013. The goal of the Neighborhood Officer Program is to quickly identify community issues, concerns, problems and crime trends that have long-term quality-of-life impacts on a particular neighborhood. The Neighborhood Officer Program allows for officers to coordinate resources to help solve these problems. This model of policing is both a philosophy and an organizational strategy that allows police and community residents to work closely together in new ways to solve problems associated with crime, fear of crime, social disorder and neighborhood decay. Attainable goals of this program include: Maintain or increase public confidence in the Police Department Decrease fear of crime Listen to and address citizen concerns Bring community resources together to solve problems Impact specific crime problems Reduce repetitive calls for service Educate the public about its Police Department 1.a Packet Pg. 34 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 20 Student Community Success Program In 2013 Cal Poly hired a full-time off-campus student life coordinator to be both proactive and reactive in supporting students and neighborhood residents with neighborhood wellness initiatives. Responsibilities of the position include: Coordinate the resolution of off-campus conduct with university administration, city government and community members to find solutions for student’s problems or concerns Assist in mediating and resolving student/community conflicts Effect change in the social climate and relationships with specific responsibility of working with students and their neighbors within the local community Implement training sessions, presentations, and educational programs regarding substance abuse, civic and social responsibility One goal of the program is to create a Student Community Success Program with the mission to help students be successful off campus and address community concerns. The program is intended to change and encourage inappropriate behavior through community and student meetings, workshops, leadership panels, and peer-mentoring opportunities. Cal Poly University Police Off-Campus Patrols By authority of the California Penal Code, the University Police Department has legal authority to exercise peace officer powers within a one-mile radius of the exterior boundaries of campus (see Appendix A). In 2014 Cal Poly hired two additional police officers to expand proactive patrols within the neighborhoods directly adjacent to campus. The focus of these patrols has been to proactively discourage and enforce public disorder crimes. Recommendations City and Cal Poly officials should craft a Memorandum of Understanding (MOU) agreement between the city and university regarding police operational protocol Partner Cal Poly and Cuesta police officers with San Luis Obispo Neighborhood Officers to coordinate resources and achieve program goals 1.a Packet Pg. 35 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 21 City should explore additional proactive educational opportunities with Cal Poly and Cuesta College to change the student culture related to neighborhood wellness Implement a keg registration program Conduct an internal assessment of the San Luis Obispo Police Department staffing to prepare for growth within the city and on the Cal Poly campus to ensure staffing needs match the population Conduct an internal assessment of the University Police Department staffing to meet the growth on the Cal Poly campus Explore the possibility of Cal Poly Police being able to issue City Municipal Administrative Citations Location of a university police substation within the new residence hall project to coordinate law enforcement problem-solving efforts 1.a Packet Pg. 36 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 22 Actions Desired Outcomes I mpl ement at i on Leads & Partners Timeline for I mpl ement at i on City and Cal Poly officials to craft a Memorandum of Understanding agreement between the city and university regarding police operational protocol within a one- mile radius Allows for coordination of resources to quickly respond to community concerns Cal Poly, City of San Luis Obispo Fall 2015 Partner Cal Poly and Cuesta police officers with San Luis Obispo Neighborhood Officers to coordinate resources and achieve program goals To coordinate resources and obtain program goals City of San Luis Obispo Fall 2015 City should explore additional proactive educational opportunities with Cal Poly and Cuesta College to change the student culture related to neighborhood wellness Change student culture related to neighborhood wellness SCLC Fall 2016, and with each annual report Implement a keg registration program A reduction in underage alcohol use and an accountability mechanism for persons who serve minors City of San Luis Obispo Fall 2016 Conduct an internal assessment of the San Luis Obispo Police Department staffing to prepare for growth within the city and on the Cal Poly campus to ensure staffing needs match the population Meet the needs of the community as population grows City of San Luis Obispo Spring 2016 Conduct an internal assessment of the University Police Department staffing to meet the growth on the Cal Poly campus Meet the needs of Cal Poly as student population grows Cal Poly Spring 2016 Explore the possibility of Cal Poly Police being able to issue City Municipal Administrative Citations To be able to patrol in neighborhoods adjacent to Cal Poly campus Addressed via MOU identified above Location of a university police substation within the new residence hall project to coordinate law enforcement problem-solving efforts Coordinate law enforcement outreach and problem solving efforts Cal Poly Fall 2018 1.a Packet Pg. 37 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 23 Goal To engage stakeholders: review current educational and informational efforts. OBJECTIVE FIVE: Engage stakeholders: review current educational & information efforts Champions Scott Chedester (Charles Scovell), Cuesta College Dr. Anthony Gutierrez, Cuesta College Kimberly Hampton, Cal Poly Joi Sullivan (Jason Colombini), Cal Poly Christine Wallace, City of San Luis Obispo Background This objective examines the methods, content and effectiveness of educational efforts put forward by Cal Poly, Cuesta College, the City of San Luis Obispo, and student resident groups. The inventory of channels of communication was compiled by representatives of Cal Poly, Cuesta College, and the City of San Luis Obispo. Neighborhood wellness meeting attendees, Cal Poly and Cuesta College student focus groups were presented with the inventory. An additional student subcommittee met to discuss the effectiveness of current methods and content. Suggestions for outreach changes made during the presentations based on the content effectiveness are reflected in the recommendations of this report. Recommendations The recommendation is to collaboratively create an annual communications plan containing neighborhood wellness messages and a process for communicating the information effectively to maximize resources. The communication plan should be reassessed annually to evaluate effectiveness and to ensure resources are not duplicated or wasted. Communications plan participants could consist of representatives from Cal Poly, Cuesta College and the city. Suggest i ons for t he Subcommi t t ee Produce a variety of impactful electronic and print media to educate residents on property maintenance standards, with a specific focus on repeat offenders in neighborhoods 1.a Packet Pg. 38 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 24 Revive the Off-Campus Housing Guide (University of Colorado, Boulder) Produce video for new Cuesta College students to view as part of the required online orientation on “how to be a good neighbor” Produce “good neighbor” and Safety Enhancement Zone videos for www.respectslo.com (Linked to Cal Poly websites and campus television stations) Cal Poly University Housing bulletin boards made available for “ good neighbor” and Safety Enhancement Zone messaging Cuesta College bulletin boards are made available for “good neighbor” and Safety Enhancement Zone messaging. Create and play radio public service announcements on KCPR Conduct annual presentations to Block P – Cal Poly Athletics Develop an information distribution plan with off-campus housing providers and property management; request Safety Enhancement and good neighbor materials be posted Housing resident assistant training to include off-campus impacts Create better avenues of communication with Greek Life house owners Produce Safety Enhancement Zone door hangers Produce banners and sandwich boards to be displayed in the Cal Poly and Cuesta College university unions about community and neighborhood wellness issues Produce table tents in Cal Poly University Union and Cuesta College cafeteria Involve off-campus housing providers (property management companies, housing complex managers) in outreach efforts Actions Desired Outcomes I mpl ement at i on Leads & Partners Timeline for Implementation Create an annual communications plan containing neighborhood wellness messages and a process for communicating the information effectively to maximize resources Effectively inform the community on matters of neighborhood wellness City of San Luis Obispo Winter 2015 1.a Packet Pg. 39 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 25 Goal The purpose of objective six of the report is to ensure that the plans developed in objectives one through five are implemented, assessed, and folded into the regular operations of the appropriate agency (for ongoing efforts). Additionally, the goal is to sustain regular communications between Cal Poly, Cuesta College, the City of San Luis Obispo, residents and students. OBJECTIVE SIX: Prepare for sustained engagement to achieve desired vision & goal Champions Dr. Keith Humphrey, Cal Poly Sandee McLaughlin, Cuesta College Background Neighborhood wellness issues in San Luis Obispo have historically been fragmented within each agency by implementing its own projects, causing confusion among year-round residents, and limiting the effectiveness of each individual effort. There is a unified desire among all constituencies in San Luis Obispo to see the quality of life improve in neighborhoods, and a structure to coordinate these efforts was missing. For almost three decades, the Student- Community Liaison Committee (SCLC) has brought the students of Cal Poly and Cuesta College together with city officials and residents for communication and discussion. This forum has been valuable to all parties, as any culture change related to neighborhood wellness rests with the students. Recommendations Re-invest in the Student-Community Liaison Committee The Student-Community Liaison Committee should assess the effectiveness of each recommendation once they have been implemented Shi f t SCLC member shi ps Host an annual town hall meeting 1.a Packet Pg. 40 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 26 Actions Desired Outcomes I mpl ement at i on Leads & Partners Timeline for Implementation Re-invest in the Student- Community Liaison Committee Become the coordinating body responsible for monitoring the recommendations, once adopted by the city council, Cal Poly and Cuesta College SCLC Fal l 2015, ongoi ng The Student-Community Liaison Committee should assess the effectiveness of each recommendation once they have been implemented Recommend the appropriate changes, and produce an annual report on the state of neighborhood wellness in the City of San Luis Obispo SCLC Ongoing Shift SCLC memberships SCLC memberships should be reevaluated to directly involve those individuals (by their position) most directly involved in neighborhood wellness SCLC Spr i ng 2016 Host an annual town hall meeting Present their report to the community, receive feedback and suggestions from the broader San Luis Obispo community SCLC Spr i ng 2016, ongoing 1.a Packet Pg. 41 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 27 1.a Packet Pg. 42 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Appendix A: Working Group Membership Page 28 APPENDIX A: Working Group Membership Dr. Keith Humphrey, Co-Chair Cal Poly Sandee McLaughlin, Co-Chair Cuesta College Karen Adler Community Joe Arteaga Cuesta College Scott Chedester (Charles Scovell) Cuesta College Steve Gesell City of San Luis Obispo Dr. Anthony Gutierrez Cuesta College George Hughes Cal Poly Kimberly Hampton Cal Poly Derek Johnson City of San Luis Obispo Katie Lichtig City of San Luis Obispo Juventino Ortiz Community Chris Staley City of San Luis Obispo Joi Sullivan (Jason Colombini) Cal Poly Stephanie Teaford (Betsy Kinsley, Justin Wellner) Cal Poly Julie Towery Community Brenda Trobaugh Cal Poly Christine Wallace City of San Luis Obispo Sharon Spatafora, Administrative Support Cuesta College Daisy Chavez, Copy Writing Cal Poly Yukie Murphy, Graphic Design & Editing Cal Poly Jo Ann Lloyd, Copy Editing Cal Poly 1.a Packet Pg. 43 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) APPENDIX B: Council Agenda Report 1.a Packet Pg. 44 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 45 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 46 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 47 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 48 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 49 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 50 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 51 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 52 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 53 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 54 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 55 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 56 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 57 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 58 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 59 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 60 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 61 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 62 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 63 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 64 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 65 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 66 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 67 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 1.a Packet Pg. 68 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellne ss and Community Civility Initiative: Summary Report from the City of San Luis Obispo Opinion Survey Peter B. Chi, Ph.D. Department of Statistics California Polytechnic State University San Luis Obispo, CA 93407 1 Intro duction On May 21, 2013, the Neighborhood Wellne ss / Community Civility Effort was launched in order to foster and improve the relationship between year round residents of San Luis Obispo, and students of California Polytechnic State University (Cal Poly), and Cuesta College. Specifically, there has been a growing concern regarding student partying and disruptive behavior across the city of San Luis Obispo. This has been highlighted by particular incidents of recent years, such as Cal Poly’s Week of Welco me (WOW) in 2012, when an estimated 2000+ students congregated in the residential area just directly south of campus, causing disruption and safety concerns as roads became impassable (City of San Luis Obispo, 2013) In addition to implementing particular strategies aimed at addressing WOW scheduling to at- tempt to keep students occupied on campus instead of disrupting neighborhoods surrounding cam- pus, the Neighborhood Wellness / Community Civility Effort implemented an opinion survey across the city of San Luis Obispo. This survey was meant to capture feedback from permanent residents and students, with the aim of identifying strategies to produce outcomes towards the overall goal of neighborhood wellness. In this report, data from the survey a re analyzed and reported in order to identify any notable trends. With no specific a priori hypotheses, this exploratory data analysis aims to capture anything that may be revealed from the data. A particular focus of the analyses, however, will be on identifying potential sources of conflict between Cal Poly students and non-student residents of San Luis Obispo. APPENDIX C: Full Survey Results Page 54 1.a Packet Pg. 69 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 2 Metho dology The City of San Luis Obispo Opinion Survey was distributed with utility bills and across campus at Cal Poly. A total of 3,807 responses were received, and entered into SurveyMonkey (SurveyMonkey Inc., 2014). For analyses, the entire dataset was exported from SurveyMonkey as a comma-separated text file and imported into the statistical analys is p latform called R (R Development Core Team, 2011). Questions were written to either gain identifying information on an individual (such as “With what ethnicity do you most identify?”), or to gain content regarding how the individual feels about a particular topic or situation (such as a Likert-scale response to “I feel as though my neighbors are respectful of my property.”). For this report, these will be referred to as “identifying questions” and “content questions,” respectively. Figures 1 and 2 below are the actual survey, where the identifying questions can be seen in Figure 1: Questions 1 through 12, and the content questions are Questions 13 through the end, across both Figures 1 and 2. 1. Do you live in San Luis Obispo city limits? O Yes. I am eligible to continue with the survey. O No. If you do not currently live in San Luis Obispo we would appreciate your willingness to fill out the survey. However, our primary initial focus is to target relations within San Luis Obispo city limits and we are limiting survey participants to this area. 2. What is your age? O 18-24 years old O 59-65 years old O 25-31 years old O 66-71 years old O 32-38 years old O 72-78 years old O 39-45 years old O 79-85 years old O 46-51 years old O 86+ years old O 52-58 years old 3. With what gender do you identify? O Male O Transgender O Female O No response. 4. Are you currently attending Cal Poly San Luis Obispo, Cuesta College, or Allan Hancock College? O Yes. I am attending Cal Poly San Luis Obispo. O Yes. I am attending Cuesta College. O Yes. I am attending Allan Hancock College. O No. I am not currently attending any of these schools. If you are attending one of these schools, what year are you and what is your major? 5. With what ethnicity do you most identify? O African American/Black O American Indian/Alaska Native O Asian O Latino O Native Hawaiian/Other Pacific Islander O White/Caucasian O Other (please specify): 6. Where is your current residence located? Please use your best judgement when picking a neighborhood O On Cal Poly’s campus. O Laguna area. O Cal Poly area. O Tank Farm/Broad area. O Johnson/Sinsheimer area. O Downtown area. O Foothill/N. Chorro area. 7. How many years have you lived in San Luis Obispo? 8. Were you born in San Luis Obispo? O Yes O No 9. How many people live in your household (include yourself in the number)? O 1 O 3 O 5 O 7 O 2 O 4 O 6 O 8+ 10. In what age group are the people who live in your household (mark all that apply)? O 0-17 years old O 52-58 years old O 18-24 years old O 59-65 years old O 25-31 years old O 66-71 years old O 32-38 years old O 72-78 years old O 39-45 years old O 79-85 years old O 46-51 years old O 86+ years old 11. How many more years do you see yourself staying in San Luis Obispo? O I have no plans of leaving. O 1 year O 5 years O 2 years O 6 years O 3 years O 7 years O 4 years O 8+ years 12. If you are renting your residence, please mark all that apply: O I am renting a room in a shared residence. O My residence is managed by a property management company. O My landlord lives outside San Luis Obispo. O My landlord lives in San Luis Obispo. O My landlord lives in my residence. O I am not renting my residence. O Other (please specify): 13. When I return to my house after school or work: O I can assume that there will be parking relatively close to my house. O I frequently have trouble finding parking relatively close to my house. O I rarely find parking relatively close to my house. Comments: 14. After the garbage companies empty the trashcans, I usually bring in my household’s trashcans off of the street: O The same evening. O Sometime the next day. O Within the next 2 – 3 days. O Within the next week. Comments: 15. After the garbage companies empty the trashcans, my neighbors usually bring in their household’s trashcans off of the street: O The same evening. O Sometime the next day. O Within the next 2 – 3 days. O Within the next week. Comments: 16. I frequently observe the following conditions in my neighborhood (check all that apply)? O Parking on the front yard. O Parking in the driveway with the vehicle extending over the sidewalk. O Fences with missing boards or that is not structurally sound. O Indoor furniture used outside or placed on rooftops. O Storage of inoperable vehicles or equipment. O Storage of building materials or other debris not associated with a valid building permit. O Illegally parked cars (i.e. opposite direction, red curb, etc.) Other (Please specify): 17. I feel my neighborhood should be quiet on a weeknight (Sunday – Thursday) by approximately: O 7 p.m. – 8 p.m. O 8 p.m. – 9 p.m. O 9 p.m. – 10 p.m. O 10 p.m. – 11 p.m. O 11 p.m. or later Comments: 18. I typically notice my neighborhood is quiet on a weeknight (Sunday – Thursday) by approximately: O 7 p.m. – 8 p.m. O 8 p.m. – 9 p.m. O 9 p.m. – 10 p.m. O 10 p.m. – 11 p.m. O 11 p.m. or later Comments: 19. I feel my neighborhood should be quiet on a weekend night (Friday – Saturday) by approximately: O 7 p.m. – 8 p.m. O 8 p.m. – 9 p.m. O 9 p.m. – 10 p.m. O 10 p.m. – 11 p.m. O 11 p.m. or later Comments: 20. I typically notice my neighborhood is quiet on a weekend night (Friday - Saturday) by approximately: O 7 p.m. – 8 p.m. O 8 p.m. – 9 p.m. O 9 p.m. – 10 p.m. O 10 p.m. – 11 p.m. O 11 p.m. or later Comments: 21. I feel comfortable addressing my neighbor if a concern arises. Strongly Disagree Disagree N eutral Agree Strongly Agr ee O O O O O Comments: 22. I feel as though my neighbors are respectful of my property. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 23. I think there is enough unsolicited police presence (not responding to a call) in my neighborhood. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 24. I would like to see more unsolicited police presence (not responding to a call) in my neighborhood. St r o n gl y Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 25. Please mark all that apply in regards to the following statement: If one of my neighbors hosts a social gathering, I often notice… O Parking becomes unavailable quickly. O Garbage is left on my or other neighbors’ property. O Vomit on my or other neighbors’ property. O Other unwanted objects on my property. O Loud and disruptive activity on the street. O Little or no problems. Comments: 26. When I first moved to San Luis Obispo, the quality of life within the San Luis Obispo residential community was: Strongly Unfavorable Neutral Favorable Strongly Unfavorable Favorable O O O O O Comments: 27. Currently, I feel the quality of life within the San Luis Obispo residential community is: Strongly Unfavorable Neutral Favorable Strongly Unfavorable Favorable O O O O O Comments: 28. If there is a discrepancy between your answers to Questions 26 and 27, please comment on the shift of your view on community climate. Comments: Figure 1: Opinion Survey, page 1 APPENDIX C: Full Survey Results Page 55 1.a Packet Pg. 70 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) 29. I believe the relationship between college-age students and permanent residents is important. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 30. I believe college-age students provide value to the San Luis Obispo community. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 31. I believe permanent residents provide value to the San Luis Obispo community. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 32. I believe a meaningful relationship between the college- age students and permanent residents should be a priority of the local government. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 33. I feel as if I am welcome to participate in discussions about improving community relationships. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 34. I feel as if I should be included in discussions about improving community relationships. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 35. I believe college-age students provide an important role in facilitating economic growth within the San Luis Obispo community. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 36. I would recommend living in my neighborhood to a friend. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 37. I support a rental inspection program for commercial and residential housing. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 38. I believe property owners of rental properties are responsible for ensuring tenants are not disruptive to neighbors. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 39. I believe property owners can be proactive with their tenants about not being disruptive in residential neighborhoods. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 40. I believe city leaders have enacted ordinances and programs to improve neighborhood civility. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 41. I believe Cal Poly and Cuesta have enacted policies and regulations for standards of conduct for their students to improve neighborhood civility. Strongly Disagree Disagree Neutral Agree Strongly Agree O O O O O Comments: 42. Have you ever been invited to be a participant in a discussion that involved Cal Poly and/or Cuesta and permanent residents? O Yes O No Other (Please specify): 43. Have you ever participated in a discussion that involved Cal Poly/Cuesta and permanent residents? O Yes O No Other (Please specify): 44. If invited to participate in a discussion that involved Cal Poly/Cuesta and permanent residents, would you participate? O Yes O No Other (Please specify): 45. At what times of the year, if any, do you notice the most disturbances in community neighborhoods? O Winter O Spring O Summer O Fall Comments: 46. If you could fix one issue in San Luis Obispo, what would it be? 47. What suggestions do you have to improve the relations between the college-age students and permanent residents? 48. Are you interested in being contacted to share your opinions on these community related issues in the future? O Yes, my e-mail is: O No Neighborhood Wellness and Community Civility Initiative CITY OF SAN LUIS OBISPO OPINION SURVEY In May of 2013, community representatives, Cuesta and Cal Poly administrators, students, and San Luis Obispo officials convened and ultimately launched a Neighborhood W ellness and Community Civility Initiative. Collectively, the group has a vision of a community in which year round residents and students actively collaborate to build community and communicate in an environment that fosters mutual respect and understanding. With this vision comes a goal of enhancing the quality of life for all residents, with particular emphasis on building positive relations between residential and student–aged neighbors through a cultural shift in social behaviors. To learn more about this initiative, please visit www.slocity.org/police/communitycivility.asp The following survey is an integral s t e p i n this initiative. In order to assess the current conditions of neighborhood wellness, surveying residents of all ages and backgrounds will provide guidance for future actions taken by officials of San Luis Obispo, Cal Poly San Luis Obispo, and Cuesta College. Please answer honestly and explain when you feel necessary. Should you have concerns arise about the survey, please contact Christine Wallace at cwallace@slocity.org. You have two options. You may complete the enclosed survey and return it in the postage-paid envelope OR you may complete the survey on-line at: https://www.surveymonkey.com/ s/PPNJHF6. Only one survey per person and only one survey per official postage-paid envelope please. Figure 2: Opinion Survey, page 2 Where appropriate, distributions of variables were compared using a standard statistical proce- dure known as a χ2 goodness-of-fit test (Pearson, 1900). As this pro ject was exploratory in nature, however, few formal statistical tests were actually performed. The ma jority of trends were simply shown in a qualitative manner, in graphical or tabular form. Additionally, a regular expression search was performed for certain free response questions, to isolate any common words that appeared most frequently. 3 Results 3.1 Descriptive Statistics An overview of our dataset, resulting from 3807 survey responses, is shown in Table 1. As expected, the vast ma jority of those between 18-24 years old are Cal Poly students (1591 out of 1672). Also, approximately 23% of non-students live in two areas that have a substantial student population: the APPENDIX C: Full Survey Results Page 56 1.a Packet Pg. 71 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) All residents Non-students Cal Poly Students Cuesta Students Characteristic Count Percent Count Percent Count Percent Count Percent Age 18-24 years o ld 1672 47.913 0.81591 95.86051.7 25-31 years o ld 144 4.168 4 54 3.32118.1 32-38 years o ld 117 3.4101 6 10 0.6 5 4.3 39-45 years o ld 119 3.4107 6.33 0.2 8 6.9 46-51 years o ld 114 3.3109 6.50 0 5 4.3 52-58 years o ld 264 7.6 256 15.21 0.1 6 5.2 59-65 years o ld 346 9.9 336 19.90 0 7 6 66-71 years o ld 275 7.9 273 16.20 0 1 0.9 72-78 years o ld 205 5.9 196 11.60 0 2 1.7 79-85 years o ld 148 4.2144 8.50 0 1 0.9 86+ years o ld 87 2.583 4.92 0.1 0 0 Ethnicity African American/Black 17 0.5 4 0.2 12 0.7 1 0.9 American Indian/Alaska Native 12 0.370.4 2 0.1 3 2.6 Asian 167 4.835 2.1128 7.7 3 2.6 Latino 162 4.732 1.9113 6.8 15 13 Native Hawaiian/Other Pacific Islander 14 0.480.5 5 0.3 1 0.9 White/Caucasian 2951 85.21518 91.11329 80.2 85 73.9 Other (please specify) 140 4 62 3.7 69 4.2 7 6.1 Neighborhood Cal Poly area. 746 21.6 134 8 592 35.7 18 18 Downtown area. 427 12.3 281 16.7 127 7.7 19 19 Foothill/N. Chorro area. 629 18.2 252 15 354 21.4 16 16 Johnson/Sinsheimer area. 372 10.8 305 18.2 52 3.1 11 11 Laguna area. 469 13.6 333 19.8 115 6.9 16 16 On Cal Poly’s campus. 376 10.9 0 0 374 22.6 1 1 Tank Far m/Broad area. 441 12.7 373 22.2 43 2.6 19 19 Table 1: Descriptive Statistics for the entire dataset “Cal Poly area” and the “Foothill/N. Chorro area.” Among these non-student residents of these two areas, roughly 90% of them are above the age of 38, pointing towards the possibility of conflict between these residents and Cal Poly students. To determine the extent to which our study sample may have been biased with respect to the target population of all San Luis Obispo citizens, a comparison of the distributions of age and eth- nicity from our survey was made to that of 2010 Census data (U.S. Census Bureau, 2010). The χ2 goodness-of-fit test revealed that our age and ethnicity distributions were indeed statistically significantly different from those of the Census data. Specifically, 18-24 year olds were overrep- resented in our sample (47.9% compared to 39.6% in Census data), and African Americans were APPENDIX C: Full Survey Results Page 57 1.a Packet Pg. 72 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) underrepresented in our sample (0.5% compared to 1.2% in Census data). Additionally, Hispanic o r Latino ethnicities were not explicitly recorded in the 2010 Census data, so our accuracy with this population is unknown. 3.2 Strong Majority Opinion Exploration Our first analysis was to examine whether any content questions had a strong ma jority responding in any particular way. We scanned through the entire survey responses, with a threshold of 80% indicating a strong ma jority. Also, we looked at this within subgroups of the dataset, with subgroups defined by combinations of the identifying questions. Among all of the content questions, only two questions surfaced as having strong ma jority opin- ions through this exploration. They were (with majority response bolded): • W hen I return to my house after school or work: – I can assume that there will be parking relatively close to my house – I frequently have trouble finding parking relatively close to my house – I rarely find parking relatively close to my house • After the garbage companies empty the trashcans, I usually bring in my household’s trashcans off of the street: – The same evening – Sometime the next day – Within the next 2-3 days – Within the next week In the entire dataset, 81.1% responded that they can find parking relatively close to their house, and 80.9% responded that they bring in their trashcans on the same evening. Among subgroups defined by age, gender, ethnicity and all other identifying questions, plus combinations thereof, many subgroups identified these same two questions/responses at a greater than 80% rate. No other content question surfaced as having at least 80% of responses matching. APPENDIX C: Full Survey Results Page 58 1.a Packet Pg. 73 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Proportion 0.0 0.2 0.4 0.6 0.8 3.3 Contrasting Questions Exploration 3.3.1 Trashcans As observed in the previous section, 80.9% of the study sample reported that they bring their trashcans in on the same day. While this does not directly point to any possible conflict, we can compare this to the responses of the next question: “After the garbage companies empty the trashcans, my neighbors usually bring in their household’s trashcans off of the street. . . ” Specifically, we can examine the distribution of responses among those who stated that they bring in their trashcans on the same day. Any of these individuals who report that their neighbors do anything other than bring their trashcans in on the same day will form a group who are potentially upset by this situation. This is summarized in Figure 3. Neighbors bring in their trashcans... (among those who responded that they bring in their trashcans the same evening) The same Sometime the Within the Within the evening next day next 2−3 days next week Response Figure 3: Distribution of responses about their neighbors, by people who reported bringing in their own trashcans on the same evening as the garbage companies empty them Since this is only among those who responded that they themselves bring in their trashcans on APPENDIX C: Full Survey Results Page 59 1.a Packet Pg. 74 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Proportion 0.0 0.2 0.4 0.6 0.8 1.0 the same evening that the garbage companies empty them, it is plausible that they might expect the same from their neighbors. Thus, we observe that just over 30% of these individuals might potentially be upset by this situation. Additionally, we explored whether this dichotomy was driven by a differing attitude between students and non-students. That is, when do students b ring in their trashcans, and when do non- students b ring in their trashcans? This is summarized in Figure 4. After the garbage companies empty the trashcans, I usually bring in my trashcans off the street: Non−students CP students The same Sometime the Within the Within the evening next day next 2−3 days next week Response Figure 4: Student vs. non-student responses regarding when they bring in their own trashcans As we observe above, Cal Poly students tend to bring their trashcans in at a later time than the non-student population. In particular, only about 60% of Cal Poly students report that they bring their trashcans in on the same evening. Finally, we examined the free responses attached to this question. Among a total of 156 non- students who left a free response, approximately 35 of them left a comment that voiced frustration at the situation, such as: • “But some NEVER bring them in!” • “The adults do. Students not so much.” • “Po ly students don’t understand trash rules.” APPENDIX C: Full Survey Results Page 60 1.a Packet Pg. 75 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Proportion 0.0 0.1 0.2 0.3 0.4 0.5 7−8pm 8−9pm 9−10pm 10−11pm 11pm or later In contrast, approximately 10 of the comments appeared to indicate that this should not be a concern of the city, e.g.: “I actually have no idea, I don’t care what my neighbors do with their trash cans as long as they don’t block my driveway.” The remaining comments appeared to be either neutral or of undeterminable tone. Also, an exam- ination of the student comments to this question revealed virtually zero who voiced frustration at the situation. It is important to note, however, that all of these counts are quite imprecise, as it was left entirely up to human judgement of a written phrase. 3.3.2 Time that it should b e quiet Questions 17 and 18 asked contrasting questions about what time it should be, and actually is, quiet on a weeknight. The overall distributions are summarized in Figure 5. I feel my neighborhood should be/is quiet on a weeknight (Sunday −Thursday) by approximately: should be is Figure 5: Side-by-side distributions of when it should be and is quiet on a weeknight. To determine the proportion who might potentially be upset at the situation surrounding this ques- tion, we categorized people as “potentially upset” if they responded that it usually is quiet at a later time than what they stated for when it should be quiet. In the entire dataset, 16.8% responded that it is quiet at a later time than they feel that it should be, on a weeknight. When separated APPENDIX C: Full Survey Results Page 61 1.a Packet Pg. 76 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Proportion 0.0 0.1 0.2 0.3 0.4 0.5 7−8pm 8−9pm 9−10pm 10−11pm 11pm or later into Cal Po ly students and non-students, the percentage potentially upset was 17.0% and 16.4%, respectively. Questions 19 and 20 were similar to Questions 17 and 18, but posed for the weekend nights. The overall distributions are summarized in Figure 6. I feel my neighborhood should be/is quiet on a weekend (Friday−Satu rday) by approximately: should be is Figure 6: Side-by-side distributions of when it should be and is quiet on a weekend. To determine the proportion who might potentially be upset at the situation surrounding this ques- tion, we categorized people as “potentially upset” if they responded that it usually is quiet at a later time than what they stated for when it should be quiet. In the entire dataset, 14.8% responded that it is quiet at a later time than they feel that it should be, on a weekend night. When separated into Cal Poly students and non-students, the percentages potentially upset were 9.9% and 18.0%, respectively. 3.3.3 Quality of life at first vs. currently Questions 26 and 27 asked about the quality of life in San Luis Obispo, when first moved to the town, and currently. The overall distributions are summarized in Figure 7. Overall, it appears that people are reporting a declining quality of life after living in San Luis Obispo for some amount of tim e. Specifically, 28.8% of all respondants reported that their current quality of life is worse than when they first moved to San Luis Obispo. W hen separated into Cal Poly students and non-students, the percentages reporting a worse quality of life currently were 13.0% and 40.4%, respectively. APPENDIX C: Full Survey Results Page 62 1.a Packet Pg. 77 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Proportion 0.0 0.1 0.2 0.3 0.4 0.5 Quality of live when first moved to / currently in San Luis Obispo: When first moved Currently Strongly Favorable Neutral Unfavorable Strongly Favorable Unfavorable Figure 7: Side-by-side distributions of quality of life when first m oved to San Luis Obispo vs. currently. An examination of the written comments, however, revealed no obvious trend or cause of the decline. Among non-students, comments ranged from “crime, drugs, late nite partys, housing authority trash/noise” to “Too much nit-picking while real problems go unresolved.” Although far fewer Cal Poly students reported a decline in quality of life over the time that they have lived here, there was a modest trend towards comments that expressed disdain for increasing rules/restrictions and police presence among those who did (16 out of 37 total written comments from Cal Po ly students). 3.4 Cal Poly and Footh ill / N. Chorro area residents As mentioned in Section 3.1, the Cal Poly and Foothill / N. Chorro area are two locations in San Luis Obispo with a high mixing of students and non-students. A summary of responses to the Likert scale questions, separated by students and non-students in these areas, is shown in Table 2. APPENDIX C: Full Survey Results Page 63 1.a Packet Pg. 78 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Table 2: Likert scale questions for residents of the Cal Poly and Foothill / N. Chorro area residents, separated by Cal Poly students and non-students. Strongly Strongly Agree Agree Neutral Disagree Disagree I feel as though my neighbors are respectful of my property. Cal Poly Students 0.21 0.46 0.18 0.11 0.05 Non-students 0.29 0.41 0.14 0.11 0.05 I would like to see more unsolicited police presence (not responding to a call) in my neighborhood. Cal Poly Students 0.03 0.11 0.27 0.25 0.33 Non-students 0.20 0.29 0.36 0.11 0.05 I believe the relationship between college age students and permanent residents is important. Cal Poly Students 0.34 0.53 0.10 0.02 0.01 Non-students 0.540.39 0.05 0.01 0.01 I believe college age students provide value to the San Luis Obispo community. Cal Poly Students 0.51 0.39 0.07 0.02 0.01 Non-students 0.26 0.510.18 0.04 0.02 I believe permanent residents provide value to the San Luis Obispo community. Cal Poly Students 0.39 0.49 0.10 0.02 0.01 Non-students 0.71 0.26 0.01 0.01 0.01 I believe a meaningful relationship between the college age students and permanent residents should be a priority of the local government. Cal Poly Students 0.19 0.40 0.26 0.11 0.05 Non-students 0.42 0.40 0.13 0.02 0.02 I feel as if I am welcome to participate in discussions about improving community relationships. Cal Poly Students 0.07 0.28 0.33 0.22 0.10 Non-students 0.14 0.510.26 0.07 0.02 I feel as if I should be included in discussions about improving community relationships. Cal Poly Students 0.20 0.46 0.29 0.05 0.00 Non-students 0.17 0.510.29 0.02 0.01 I believe college age students provide an important role in facilitating economic growth within the San Luis Obispo community. Cal Poly Students 0.60 0.33 0.05 0.01 0.00 I would recommend living in my neighborhood to a friend. Non-students 0.29 0.44 0.19 0.06 0.02 Cal Poly Students 0.39 0.45 0.11 0.03 0.02 Non-students 0.32 0.33 0.14 0.10 0.11 I support a rental inspection program for commercial and residential rental housing. Cal Poly Students 0.20 0.32 0.27 0.14 0.08 Non-students 0.37 0.31 0.16 0.08 0.07 I believe property owners of rental properties are responsible for ensuring tenants are not disruptive to neighbors. Cal Poly Students 0.09 0.27 0.24 0.26 0.14 Non-students 0.53 0.31 0.05 0.06 0.05 I believe property owners can be proactive with their tenants about not being disruptive in residential neighborhoods. Cal Poly Students 0.11 0.500.25 0.09 0.06 Non-students 0.55 0.37 0.06 0.02 0.01 I believe city leaders have enacted ordinances and programs to improve neighborhood civility. Cal Poly Students 0.05 0.30 0.38 0.13 0.14 Non-students 0.10 0.45 0.32 0.10 0.03 I believe Cal Poly and Cuesta have enacted policies and regulations for standards of conduct for their students to improve neighborhood civility. Cal Poly Students 0.06 0.35 0.38 0.13 0.08 Non-students 0.04 0.28 0.41 0.20 0.09 11 1.a Packet Pg. 79 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Notably, the distribution of responses for Cal Po ly students vs. Non-students differed at a statistically significant level for all of the questions in the table above, except for the question: “I feel as if I should be included in discussions about improving community relation- ships.” That is, every other Likert scale question in the above table points to a dichotomy of attitudes when comparing students vs. non-students who live in the Cal Poly and Foothill / N. Chorro areas. One specific contrast of interest is the differing of attitudes about who should be responsible for whether tenants are disruptive to their neighbors o r not. Among non-students, roughly 80- 90% believe (either “Strongly Agree” or “Agree”) that property owners should be responsible for their tenants regarding their disruptiveness to neighbors, whereas only about 30% of students feel similarly. On the other hand, when asked if property owners can be proactive about the same issue, approximately 60% of students responded with either “Strongly Agree” or “Agree,” pointing to at least some degree of openness to communication with their landlords regarding noise issues. Additionally, the trashcan and quiet time issues from Sections 3.3.1 and 3.3.2 are at an increased level in the Cal Poly and Foothill / N. Chorro areas. Using the same “potentially upset” definition as in the previous sections, approximately 37.0% of non-students living in these areas fall into this categorization. By comparison, in Section 3.3.1 we saw that approximately 30% of all citizens (that is, all students and non-students) fell into this categorization; in fact, this percentage is the same for non-students across all neighborhoods, indicating an increase in the proportion in this category for the Cal Poly and Foothill / N. Chorro areas. Regarding the tim e that it should be quiet on a weekday night, approximately 28.0% of non-students are categorized as potentially upset, and 31.2% are potentially upset for the weekend nights (compared to 17.0% and 18.0% as stated in Section 3.3.2). 3.5 Issues and Suggestions: written comments Question 46 asked: “If you could fix one issue in San Luis Obispo, what would it be?” APPENDIX C: Full Survey Results Page 65 1.a Packet Pg. 80 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Using a regular expression search, Table 3 shows the most common words found in the responses, separated by students and non-students. non-students Cal Poly students word count word count downtown 110 students 142 homeless 90 college91 traffic 87 residents 53 rental 72 noise52 Poly 58 campus 47 street 42 parking 46 noise 41 housing 46 bars 40 police42 residents 39 permanent 41 cars 35 Poly 39 Table 3: Most common words found in written responses to the question, “If you could fix one issue in San Luis Obispo, what would it be?” All short words such as prepositions, conjunctions, and other low-content words (such as “more”) were removed from the list. Some words that do appear on the list may not be that revealing, such as the usage of “students” or “college” by Cal Poly students in their comments. On the other hand, an examination of the non-student comments containing the word “downtown” showed comments that mainly focused on homelessness (overlapping with #2) and disruptive behavior associated with the bars (overlapping with #8). Question 47 asked: “W hat suggestions do you have to improve the relations between the college-age students and permanent residents?” Again using a regular expression search, Table 4 shows the most common words found in the responses to this question, separated by students and non-students. APPENDIX C: Full Survey Results Page 66 1.a Packet Pg. 81 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) non-students Cal Poly students word count word count students 335 students 192 neighbors 103 residents 153 residents 93 college 137 Poly 80 permanent 111 college 80 community 71 campus 75 campus 55 respect 70 neighbors 45 community 60 noise36 landlords 45 people 35 behavior 44 think 35 Table 4: Most common words found in written responses to the question, “W hat suggestions do you have to improve the relationship between the college-age students and permanent residents?” Again, not all words are extremely revealing. Of note, however, is the fact that the words “rule(s),”, “regulation(s),” and “fine(s)” do not appear on either list, suggesting that neither students nor non-students tend to believe that an increase in city ordinances is the answer. In contrast, we see words such as “respect,” “community” and “neighbors,” suggesting that ultimately, students and non-students would like to co-exist in a harmonious manner. A specific response to this question that exemplifies this sentiment is one from a non-student living in the Foothill / N. Chorro area that states: “Have a beer with them - as long as they are of legal drinking age. Otherwise, you might have to buy them a fountain drink.” 4 Discussion and Conclusions In this report, we summarize the results f rom the City of San Luis Obispo Opinion Survey. Certain trends were explored, with a focus on potential sources of conflict between Cal Poly students and non- student residents of San Luis Obispo. It is important to note that, since this analysis was exploratory in nature, all of the findings must be treated as suggestive, rather than as strong evidence in favor or in opposition of any notion. Additionally, there is a slight concern for bias in the dataset, as noted in Section 3.1. The distributions of age and ethnicity in our survey dataset were statistically significantly different from APPENDIX C: Full Survey Results Page 67 1.a Packet Pg. 82 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) that of the Census data. However, the differences were not drastic; although this may indeed be a concern, it is relatively minor. Among all potential sources of conflict in San Luis Obispo, the one with the largest indication is the time that neighbors bring their trashcans in, with approxim ately 30% of all residents being potentially upset. Noise at night does not appear to be as much of an issue, except specifically in the Cal Poly and Foothill / N. Chorro areas, where non-students are potentially upset at a rate of approximately 30% on both weeknights and weekends. The survey also revealed a vast dichotomy of attitudes between non-students and Cal Poly students. This is exposed in the responses to the Likert Scale questions in Table 2, and also with regard to when each group tends to bring their trashcans in. It does not appear likely that this systematic difference in attitude could be corrected by specific fines and ordinances. Rather, any strategy to remedy this must be aimed at addressing this broadly, both am ong students who plan to live off-campus, and for non-students who live in heavily student-populated areas. Future work could examine the question of whether any implemented strategies are working. In particular, certain increases in fines have indeed been in place since May 2010, aimed specifically at Halloween and St. Patrick’s Day (City of San Luis Obispo, 2013). Fr om a statistical standpoint, the data up to this point do not suggest that the increase in fines have been an effective deterrent of citable offenses. It is of course possible that, with more data, the evidence could arise, and this question could possibly be addressed properly at that time. However, as mentioned above, this report does not support the notion that specific increases in fines will achieve outcomes consistent with neighborhood wellness. As student and non-student attitudes and expectations about residential life in San Luis Obispo are so dichotomous at this time, this must be addressed systematically, rather than by attempting to deter specific behaviors. APPENDIX C: Full Survey Results Page 68 1.a Packet Pg. 83 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) References City of San Luis Obispo. Council agenda report, 2013. K. Pearson. On the criterion that a given system of deviations from the probable in the case of a correlated system of variables is such that it can be reasonably supposed to have arisen from random sampling. Philosophical Magazine Series, 50:157–175, 1900. R Development Core Team. R: A Language and Environment for Statistical Computing. R Foun- dation for Statistical Computing, Vienna, Austria, 2011. ISBN 3-900051-07-0. SurveyMonkey Inc. Surveymonkey. http://www.surveymonkey.com, 2014. U.S. Census Bureau. Census 2010, 2010. APPENDIX C: Full Survey Results Page 69 1.a Packet Pg. 84 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) APPENDIX D: Matrix of all action items Objective One: Actions Desired Outcomes Implementation Leads & Partners Timeline for Implementation Schedule regular neighborhood tours with city council, mayor, neighbors, Cal Poly and Cuesta leaders, etc. Allow neighbors to point out neighborhood issues Cal Poly Ongoing, began Summer of 2014 Investigate establishing S.N.A.P. Ride-Along program and promote current Police Ride Along program Increase the amount of support to assist with complaints and allow officers to do other police work City of San Luis Obispo Fall 2015 Explore the option of creating a noise ordinance in public spaces on streets and sidewalks for gatherings of more than 50 people by issuing citations or other alternative options Decrease number of noise complaints City of San Luis Obispo Spring 2016 Consider expanding tools to enforce ordinances for nuisance properties including, but not limited to, “tagging” properties that meet a definition of a public nuisance or unruly gatherings in terms of both property- maintenance concerns and behavior issues Hold repeat noise violators accountable City of San Luis Obispo Spring 2016 Evaluate policies so that new development or redevelopment does not unduly impact neighborhoods. Decrease properties that allow for high occupancy City of San Luis Obispo Fall 2016 Appendix D: Matrix of all action items Page 70 1.a Packet Pg. 85 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Objective Two: Actions Desired Outcomes Implementation Leads & Partners Timeline for Implementation Evaluate best practices and implement strategies to reduce the number of disruptions from parties and noise in neighborhoods (as referenced in Objective Three) Reduce noise disruptions Cal Poly and Cuesta College (programmatic) City of San Luis Obispo (enforcement) Fall 2015 Develop and implement a rental housing inspection program Insure that rental units comply with required minimum health and safety standards City of San Luis Obispo Fall 2016 Implement a range of strategies to change the relationship and culture between students and non-students in neighborhoods (no specific recommendations discerned from the survey results) Improve student and community relationships Cal Poly Associated Student, Inc. (ASI) and Associate Students for Cuesta College (ASCC) Spring 2016 Explore and implement strategies to address the concentration of bars in the downtown area and related safety issues. Consider using strategies identified in the Land Use and Circulation Element update to achieve this objective Address and decrease safety-related issues City of San Luis Obispo Ongoing per LUCE strategies Implement educational programs to increase the number of student-aged residents who bring in their trashcans on the same day the trash is picked up Increase the number of student-age residents to comply with the 24-hour ordinance City of San Luis Obispo Ongoing Continue to implement strategies to address homelessness in San Luis Obispo (particularly in the downtown area) A reduction in the impacts of homelessness on the community City of San Luis Obispo Ongoing Implement strategies to reduce traffic issues in neighborhoods. Consider using strategies identified in the Land Use and Circulation Element update to achieve this objective Reduce traffic-related issues in neighborhoods City of San Luis Obispo Ongoing Appendix D: Matrix of all action items Page 71 1.a Packet Pg. 86 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Objective Three: Actions Desired Outcomes Implementation Leads & Partners Timeline for Implementation Create and implement a transition to Off-Campus Living Education Program, to be shared with Cuesta College’s Student Life Office Set expectations and responsibilities for students living in neighborhoods in the City of San Luis Obispo Cal Poly Summer 2015 Work with the city to generate a neighborhood map of housing rental properties and provide outreach to student renters by funding welcome bags for neighbors to distribute to establish positive interactions Establish positive interaction with City Cal Poly ASI , ASCC, City of San Luis Obispo Spring 2016 Create a Renter/Rental Housing Inspection Program Rental properties that meet minimum health and safety standards Cal Poly, City of San Luis Obispo Spring 2016 Develop outreach and marketing efforts toward students Raise awareness of the impacts of noise on neighborhood Cal Poly Spring 2016 Implement a Party Registration Program. Develop a program to incentivize party registration that provides the opportunity for the San Luis Obispo Police Department to contact the party registrant and offer a 20- minute warning before dispatching S.N.A.P. or a police officer Fewer noise citations City of San Luis Obispo Spring 2016 Initiate Dialog Dinners or Block Parties for students and residents to talk about what they like most about their neighborhoods Create positive interactions between students and year- round residents Cal Poly ASI, ASCC Ongoing Promote the principles of the The Mustang Way in neighborhoods Enhance a positive culture of peer-to-peer accountability in neighborhoods Cal Poly ASI Ongoing Appendix D: Matrix of all action items Page 72 1.a Packet Pg. 87 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Continue to engage and communicate collaboratively among students, non-students and city groups Improve collaboration and understanding among students, non- students and city groups SCLC Ongoing Utilize various on-campus departments and offices that support living off-campus to support students, non- students and permanent residents living in neighborhoods. Educate students about university policies and ordinances, strengthen neighborhood relations by facilitating dialogs Cal Poly & Cuesta College Fall 2015 Develop proactive engagement of law and code enforcement with visits to properties of concern; “Knock and Talk”. Positive engagement with law enforcement and decrease repeat offending properties City of San Luis Obispo Ongoing Implement a Joint Letter Program. Police contact with students in off-campus housing generates letter signed by university, police and city that outlines expectations sent to resident and landlord Cal Poly Fall 2015 Objective Four: Actions Desired Outcomes Implementation Leads & Partners Timeline for Implementation City and Cal Poly officials to craft a Memorandum of Understanding agreement between the city and university regarding police operational protocol within a one- mile radius Allows for coordination of resources to quickly respond to community concerns Cal Poly, City of San Luis Obispo Fall 2015 Partner Cal Poly and Cuesta police officers with San Luis Obispo Neighborhood Officers to coordinate resources and achieve program goals To coordinate resources and obtain program goals City of San Luis Obispo Fall 2015 City should explore additional proactive educational opportunities with Cal Poly and Change student culture related to neighborhood SCLC Fall 2016, and with each annual report Appendix D: Matrix of all action items Page 73 1.a Packet Pg. 88 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Cuesta College to change the student culture related to neighborhood wellness wellness Implement a keg registration program A reduction in underage alcohol use and an accountability mechanism for persons who serve minors City of San Luis Obispo Fall 2016 Conduct an internal assessment of the San Luis Obispo Police Department staffing to prepare for growth within the city and on the Cal Poly campus to ensure staffing needs match the population Meet the needs of the community as population grows City of San Luis Obispo Spring 2016 Conduct an internal assessment of the University Police Department staffing to meet the growth on the Cal Poly campus Meet the needs of Cal Poly as student population grows Cal Poly Spring 2016 Explore the possibility of Cal Poly Police being able to issue City Municipal Administrative Citations To be able to patrol in neighborhoods adjacent to Cal Poly campus Addressed via MOU identified above Location of a university police substation within the new residence hall project to coordinate law enforcement problem-solving efforts Coordinate law enforcement outreach and problem solving efforts Cal Poly Fall 2018 Objective Five: Actions Desired Outcomes Implementation Leads & Partners Timeline for Implementation Create an annual communications plan containing neighborhood wellness messages and a process for communicating the information effectively to maximize resources Effectively inform the community on matters of neighborhood wellness City of San Luis Obispo Winter 2015 Appendix D: Matrix of all action items Page 74 1.a Packet Pg. 89 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Objective Six: Actions Desired Outcomes Implementation Leads & Partners Timeline for Implementation Re-invest in the Student- Community Liaison Committee Become the coordinating body responsible for monitoring the recommendations, once adopted by the city council, Cal Poly and Cuesta College SCLC Fall 2015, ongoing The Student-Community Liaison Committee should assess the effectiveness of each recommendation once they have been implemented Recommend the appropriate changes, and produce an annual report on the state of neighborhood wellness in the City of San Luis Obispo SCLC Ongoing Shift SCLC memberships SCLC memberships should be reevaluated to directly involve those individuals (by their position) most directly involved in neighborhood wellness SCLC Spring 2016 Host an annual town hall meeting Present their report to the community, receive feedback and suggestions from the broader San Luis Obispo community SCLC Spring 2016, ongoing Appendix D: Matrix of all action items Page 75 1.a Packet Pg. 90 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) APPENDIX E: Post March 7 Recommendations Neighborhood Wellness/Community Civility Working Group Ideas to Investigate arranged by Objective *NOTE: These ideas were generated by the City of San Luis Obispo (e.g. public comment at March 17, 2015 City Council Meeting) and Cal Poly staff through a number of forums after the March 7, 2015 roof collapse on Hathway Street. These ideas were not discussed by the Neighborhood Wellness/Community Civility Effort working group and their inclusion in this report should not be considered an endorsement by the working group. Objective 1: Define short-term actions that could be implemented to enhance quality of life for all residents particularly associated in the timeframe around the opening of the Cal Poly and Cuesta College campuses at the beginning of the school year. 1 Develop smoother lines of communication between the city, Cal Poly and Cuesta both proactively and reactively. 2 Students need to be informed of the consequences of their actions off campus and perhaps have responses strengthened to moderate behavior. 3 Quicker administrative response is needed to violations of behavior off campus by the city, Cal Poly and Cuesta. Objective 2: Define Stakeholders’ Needs and Success 4 Create a tip line where anyone (students, neighbors, etc.) can report potential problems before they have negative impact on the community. Objective 3: Identify University/City Best Practices 5 Advance the effort to house Greek organizations on the Cal Poly campus. 6 Create a student ambassador program that has two components. The first component should be to promote positive relations in the community. The second component should be an anonymous social event attendee to report unsafe behavior to the appropriate authority. 7 Improve response time by SLOPD and UPD to reports of noise off campus. 8 Bring alternative social/entertainment opportunities on campus to reduce the reliance on off campus events for socialization. 9 Reach out to universities who consistently host regulated tailgate parties, with monitored alcohol distribution. Learn what works well for them and bring their best practices to Cal Poly tailgates. 10 Increase the methods to hold landlords accountable for the negative behavior of their tenants including court appearances by the landlord or denial of business license. 11 Suggest that landlords add clause in rental agreements that prevents any activity on roof. Appendix E: Post March 7 Recommendations Page 76 1.a Packet Pg. 91 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Working Group Ideas to Investigate arranged by Objective *NOTE: These ideas were generated by the City of San Luis Obispo (e.g. public comment at March 17, 2015 City Council Meeting) and Cal Poly staff through a number of forums after the March 7, 2015 roof collapse on Hathway Street. These ideas were not discussed by the Neighborhood Wellness/Community Civility Effort working group and their inclusion in this report should not be considered an endorsement by the working group. 12 Aggressively advance the Rental Inspection ordinance to identify unsafe and unhealthy properties. 13 Evaluate “Neighborhood Specialists” like in Davis (Maybe adjust hours/days of existing Neighborhood Specialists. 14 Continue to develop strategies that promote more diverse neighborhoods, including more owner-occupied and long-term rentals (ie workers and family rentals, not short term academic year rentals) 15 SLOPD and UPD should collaborate on methods to deter large crowds from migrating from area to area. 16 Implement programs that create peer to peer pressure, that help students own their actions and accept responsibility for behavior that does not promote neighborhood wellness. Objective 4: Review Enforcement Best Practices 17 Consider the size and scope of a party to help determine what safety and hazard city ordinances can be created/enforced? Perhaps double or triple fines during peak hours or holidays where large parties/events are expected. 18 Limit the number of student rental properties to one per street. 19 Create and enforce a 10:00 pm noise curfew with escalating noise fines by the hour. 20 More visible UPD presence on campus and in the residential neighborhoods immediately surrounding campus (an MOU is currently being finalized to allow UPD to issue municipal citations off campus). 21 Issue a citation to the leadership figure of the organization responsible for hosting an out- of-control party. Consider exploring ways to hold the national organization responsible as well. 22 Consider installing more security cameras to effectively monitor activity. 23 Create a staff position to investigate potential dangerous student activity before events take place. 24 Enforce limits on the size of parties at residential addresses. 25 Create a culture change regarding informants. Students offer information to a point, but stop divulging information for fear of implicating themselves. Re-work current policy to ensure informants will not be reprimanded to encourage future sharing. 26 Citations should be issued to those students who participated in negative events. 27 City approval should be required for individuals or organizations hosting a party over a Appendix E: Post March 7 Recommendations Page 77 1.a Packet Pg. 92 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Working Group Ideas to Investigate arranged by Objective *NOTE: These ideas were generated by the City of San Luis Obispo (e.g. public comment at March 17, 2015 City Council Meeting) and Cal Poly staff through a number of forums after the March 7, 2015 roof collapse on Hathway Street. These ideas were not discussed by the Neighborhood Wellness/Community Civility Effort working group and their inclusion in this report should not be considered an endorsement by the working group. certain number of people. 28 Red tag ordinance for houses that have unruly gatherings/noise citations should be implemented and last longer than the academic year. 29 Find a way to hold property managers or management companies accountable for the negative behavior at properties they manage. 30 Serious academic consequences up to suspension and expulsion should be on the table for Students who engage in activities that do not promote neighborhood wellness. 31 Immediately suspend or permanently ban fraternities who allow in any way illegal activities to happen via their instigation: rapes, underage drinking, hazing deaths, racist displays, unruly gatherings. Second chances seem to mean “go ahead” to this crowd. 32 Parental notification should be explored for off campus behavior. 33 Higher fines, double fines, longer fines, fines able to be raised at certain time of day. Objective 5: Engage Stakeholders: Review Current Educational And Information Efforts 34 Require students to complete an alcohol/safety education program before being allowed rush for a Greek organization (we should also consider limiting Greek organization recruitment to the first quarter of attendance). 35 Monitor Yik Yak and other social mediums used by our student population as a resource to inform us of potential dangerous situations. 36 SLOPD should consider utilizing social media scanning software to be more aware of activities planned off campus. 37 The city should inform the landlord every time the police are called to a rental property, even if no violation is found. 38 Enhance education on the dangers of large crowds: students need to learn this is as bad as drinking too much, nonconsensual sex and other immature or inappropriate or illegal behaviors. 39 Evaluate systems & structures in dorms to prevent mass exodus to mega social gathering and complement protocols to inform authorities (student affairs UPD SLOPD) of eminent threat of unruly gathering (mega social gathering). 40 Targeted patrolling by city and university police. Wider area for UPD patrols. Objective 6: Prepare for Sustained Engagement to Achieve Desired Vision and Goal 41 None. Appendix E: Post March 7 Recommendations Page 78 1.a Packet Pg. 93 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) MAINTAINING BALANCED NEIGHBORHOODS A Research Paper presented to the San Luis Obispo Civility W orking Group on Different Approaches to Students Living in Established Residential Areas July 18, 2014 APPENDIX F: Maintaining Balanced Neighborhoods Page 79 1.a Packet Pg. 94 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) I . . APPENDIX F: Maintaining Balanced Neighborhoods Page 80 1.a Packet Pg. 95 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) ""' CITY OF S.flll LUIS OBISPO Civilit y W orking Group The City of San Luis Obispo Neighborhood Wellness/Community Civility Effort is a working group comprised of City residents and representatives of Cal Poly State University (Cal Poly), Cuesta College and the City of San Luis Obispo (City). The goal of the working group is to enhance the quality of life for all residents, with particular emphasis on building positive relations between residential and student-aged neighbors through a cultural shift in social behavior. This goal is to be reached by identifying the needs of those involved and the short- term actions, long-term best practices and engagement efforts required by the City and schools to successfully meet those needs. 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Poly, Council, and Cvl!staJtrategies to l.'nh.m[ethequality of life for all residents with an emphasis on builtUngposltive relations between resldentiilland student-aced neighbors through COmmliltlllt'( De opment Deparl nt foWe DrD tl li'NI"I PubUcWor De:::: nl t1t Cal Poly l'rflld«llf'• v M.m.: grr omcr Cal Poly-City- Cuesta Working Group 7 ( LICOifii• ( NTI (I)iMIJ• Vir.ePfl.'SIJ:lNII Studuttufe l Smd""\' S•I'II M & qd .......,Hp A.!.todf{fd Slli OO"" PrM.Idt"nt acullurill!.hiltiu '------------------;r"' social behaviors Public / . _/\_\ Neighborhood Services Team Mission: EKChange .jei wJ -,; jl1 c.WHI c Y Neighborhood CM'M <i!.I YdMU C<Jifloty!>twh•JJl'> Cl f'oJyA I C.lll'olyHnu< "i Group\ Rfowdi' •Tf Information and Ideas to Implement nel&hborhood 1fllj21.Jl APPENDIX F: Maintaining Balanced Neighborhoods Page 81 1.a Packet Pg. 96 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) CITY OF S.fill LUIS OBISPO FROM: Katie Lichtig, City Manager, City of San Luis Obispo Prepared By: James David, Principal Analyst Lisa Letteriello, Administration Intern SUBJECT: MAINTAINING BALANCED NEIGHBORHOODS PURPOSE Review current local town-gown neighborhood issues and provide alternative practices in other communities that face similar student housing challenges in residential areas. DISCUSSION Situation The City of San Luis Obispo (City) is in close proximity to two colleges; Cuesta College and Cal Poly. Cuesta College is a commuter school without campus housing, and Cal Poly does not have sufficient on-campus housing for all enrolled students (there are plans to create more housing opportunities on-campus in the next five years). Furthermore, college students often prefer to live off-campus in their junior and senior years. These factors mean students seek housing in the City limits, and the most predominant housing type in the City is low-density single-family housing in established neighborhoods. A number of issues have been reported over the years related to students living in low-density residential neighborhoods: 1. Students tend to live in certain areas close to campus, which affects neighborhood diversity. High concentrations of student renters living in neighborhoods compounds and intensifies issues like partying, noise and parking. Renter-occupancy estimates for census tracts immediately adjacent to Cal Poly range from 59 to 95 percent renters: Selected Housing Characteristics from U.S. Census 1 CHARACTERISTIC CENSUS TRACT 109.01 CENSUS TRACT 109.02 CENSUS TRACT 112 TOTAL {ALL 3 TRACTS) CITYWIDE Total Housing Units 1,032 1,561 3,033 5,626 20,553 Single-Family Residences 10% 40% 62% 46% 54% Units Built 1950 to 1979 53% 64% 62% 61% 48% Owner-occupied Units 5% 13% 41% 26% 38% Renter-occupied Units 95% 87% 59% 74% 62% 1 Estimates do not include on-campus housing units, which are classified as "group quarters" by the U.S. Census. Source: 2008-12 American Community Survey, 2010 U.S. Census APPENDIX F: Maintaining Balanced Neighborhoods Page 82 1.a Packet Pg. 97 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) CITY OF SHU LUIS OBISPO Reference Map of Census Tracts near Cal Poly 2. Rental costs are high, which drives more students (smaller incomes) to live together in one single family home. Most single-family homes are not designed for four to five adults, especially in terms of bathroom facilities and parking. 3. The City's code enforcement data shows a correlation between high rental areas and reported violations of municipal codes. Some repeated reported violations include: a. Noise, public drunkenness, vandalism and crime b. Property maintenance issues c. Parking 4. Local housing costs are inflated because four to five students can and will pay more for rental housing than the majority of the local workforce, especially those workers in industries with lower wages. This causes many workers to commute, which affects infrastructure (roads), environment (emissions) and society (less owner- occupancy/pride of ownership). These issues are common in many town-gown communities when large student populations move . in to residential neighborhoods; sometimes referred to as "studentification". Studentification is a term coined by Dr. Darren Smith (2002) and is defined as the social and environmental changes caused by a very large number of students living in particular areas of a APPENDIX F: Maintaining Balanced Neighborhoods Page 83 1.a Packet Pg. 98 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) CITY OF S.Hn LUIS OBISPO town or city. It is not necessarily students living in the community, but instead the substitution of a local community by a student community. 1 The City desires to avoid "studentification" in its low-density residential neighborhoods. The following sections identify ideas for potential solutions -including best management practices from nationwide research- to be considered by the Civility Working Group. Potential Solutions Two main focus areas should be (1) increasing neighborhood diversity and (2) enhancing affordable housing options. 1. Increasing Neighborhood Diversity Diversifying neighborhoods means creating a healthy balance of renters and owner-occupants, as well as a mix of resident types (families, students, couples, singles, etc.). Within the context of student housing, limiting concentration of student rentals increases neighborhood diversity. A. Consider a Neighborhood Stabilization Program (NSP). The U.S. Department of Housing and Urban Development, and many other communities facing foreclosure and abandonment issues, instituted an NSP to help troubled neighborhoods rebound. 2 Using a revolving NSP fund, abandoned and foreclosed homes were purchased and then resold at a discounted price to homebuyers in need of assistance. The same philosophy could be implemented in residential neighborhoods to create more opportunities for owner-occupied housing units. Potential NSP elements may include: a. Establish a revolving fund to be used exclusively to purchase single-family homes within targeted neighborhoods (such as Alta Vista and Monterey Heights) as they become available on the open market. b. Resell all homes purchased with the revolving fund within a reasonable time to likely owner-occupants; university staff, faculty or other workforce buyers. c. Evaluate legally permissible mechanisms to perpetuate owner-occupancy, such as a homeowners association (HOA), that are consistent with fair housing provisions of State and Federal laws. Developing a HOA for NSP homes is preferable because the HOA can impose conditions, covenants and agreements that require owner-occupancy of the primary residence for a minimum length of time. d. Proceeds from all home sales would go to replenish the revolving fund. e. Maintain "right of first refusal" granting the NSP the right to re-purchase the home when it is offered for sale. f. The NSP could be established on a limited-term basis, or terminated when owner-occupancy rates for single-family units within targeted neighborhoods reach a certain level that could be seen as self-sustaining. 1 Town and Gown Glossary. http://www.towngownworld.com/towngownglossary.html 2 http: //portal.hud.gov/hudportai/HUD?sr c=/program offices/comm plannlng/communitydevelopment/programs/neighborhoodspg. APPENDIX F: Maintaining Balanced Neighborhoods Page 84 1.a Packet Pg. 99 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) CITY OF S.flnLUIS OBISPO This alternative has complicated legal issues surrounding real property rights, equal protection, and privacy that will require more research if the Civility W orking Group supports further development of a NSP. B. Look for opportunities to create faculty and staff housing in student areas. The College of San Mateo, California, has an award winning 44-unit rental housing development for faculty and staff (College Vista), which offers a first-class living environment with rents at half the market average.3 A local example is the 69-unit Bella Montana workforce housing project located in a neighborhood that is impacted with student rentals immediately adjacent to Cal Poly campus. The ground sublease has a ranking priority hierarchy that encourages purchase by Cal Poly faculty and staff, with a back-up market priority for public education, public agency, other CSU employees, and the general public. In all, there are 24 priority rankings in the sublease with newly recruited Cal Poly faculty receiving the highest priority and the general public receiving the lowest. Bella Montana is different from most condominiums in that the structures are owned by the buyers, while Cal Poly remains the owner of the ground upon which the structure sits and has greater control over the conditions of sale of the condos. C. Evaluate strengthening occupancy restrictions to avoid single-family residential overcrowding. The City of Fort Collins, home to Colorado State University, restricts occupancy in all residential dwelling units (single-family, duplex, and multifamily) to one family and not more than one additional person; or two adults and their dependents, and not more than one additional person, or up to four unrelated persons in a dwelling unit located in an apartment complex containing units which were approved to house four unrelated persons.4 The City of San Luis Obispo's Zoning Regulations prohibit six or more adult occupants in the low-density residential zone without a High Occupancy Use Permit. D. Develop a rental inspection program that checks occupancy. The City of Bloomington, home to Indiana University Bloomington, implemented a Rental Occupancy Program that requires rental property inspection every three to five years to validate current occupancy permits. Occupancy permits allow up to three unrelated adults in single- family zoning districts, and up to five in multi-family zoning districts. 5 The City of Santa Cruz, California adopted a 2010 ordinance that requires all owners of one or more residential rental dwelling units to register with the city and participate in an annual inspection. The Santa Cruz program aims to address unpermitted dwelling units and the renting of spaces not intended for habitation, as well as substandard, overcrowded, unsanitary and unsafe housing conditions that render a housing _unit unfit or unsafe for occupancy.6 The City of San Luis Obispo is currently developing a multifamily rental inspection program to be presented to the public and City Council in late 2014. '.h ttp://www.smccd .edy/accounis/smccd/department s/faclllt les/BestAmerlca nllvlngAwa rd.shtml. 'http://www.fcgov.com/neighborhoodservices/occupancy. php 'http://www.ltgau.org/userAies/flles/CityBrochure-Bioomi ngton.pdf 6 Santa Cruz Residential Rental Inspection Program. http:l!www.cityofsantacruz.com/index.aspx?page=1536. APPENDIX F: Maintaining Balanced Neighborhoods Page 85 1.a Packet Pg. 100 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) CITY OF S.fin LUIS OBISPO E. Work with common interest developments on restrictive leases. In California, courts have allowed homeowners associations to limit or ban rentals in private condominium projects or planned developments. Restrictions against leasing in a common interest development must be shown to be reasonable in order to be enforceable per California Civil Code Sections 711 and 1354. In the case City of Oceanside v. McKenna (1989), the Oceanside court found that restrictions on a publicly subsidized condominium project to require owner-occupancy and forbid the leasing of units was valid. The justification offered by the City and its Community Development Commission was found reasonable since prohibiting leasing would foster the redevelopment goals of providing a stabilized community of owner-occupied units for low and moderate income persons.7 F. Create more on-campus housing. Giving students more opportunities to live on-campus may reduce concentration of students living in nearby low-density residential neighborhoods. Cal Poly and the City have adopted policies that support student housing on-campus, and Cal Poly is planning to build a new 1475-bed campus housing facility soon. Other universities require all freshmen to live on-campus, and some also require that freshmen leave their cars at home the first year. In addition to providing new campus housing, Cal Poly could formally adopt a goal to house a certain percentage of students on campus b y a specified date. 2. Enhancing Affordable Housing Options Creating affordable housing is a local, regional and national objective. Within the context of student housing, creating affordable options means offering more housing types with different cost profiles so that students may avoid overcrowding in single-family residences. A. Create partnerships to achieve common affordable housing goals. Northeastern University, Massachusetts, provides a good example of this approach in its Davenport Commons. The project consists of 125 units of housing for students and staff, 60 affordable owner-occupied townhouses, and 2,100 square feet of retail space. 8 It was a complex project, involving many stakeholders and negotiations including a community benefits package of affordable housing, helping homeowners start a condominium association and providing both technical assistance and education for first-time homebuyers. B. Continue to distribute Good Neighbor guides and update off-campus housing outreach materials. The University of Virginia 9 and the City of Fort Collins10 have developed guides that include tips for finding affordable off-campus housing, advice about the financial responsibilities of living on their own, and behavior expected of a good neighbor and community member. Cal Poly, Cuesta College and the City should update their off-campus housing guides to include affordable housing options in the region. The 7 The Case for Rental Restrictions. http://www.hoa-iaw.com/publicalions/case--rental-restridions.shtml 'http://www.dhkinc.com/Housing/affordable/9703.asp • http://www.itgau.org/userfiles/files/off grounds guide.pdf 10 http://www.fcgov.com/nelghborhoodservlces/pdf/lthandbook.pdf?20081224 APPENDIX F: Maintaining Balanced Neighborhoods Page 86 1.a Packet Pg. 101 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) CITY OF SHU LUIS OBISPO guides should also list reasons why overcrowding in low-density residential housing can adversely affect health and safety of tenants, impact available parking, arid contribute to noise and privacy conflicts. Additional Resources The following four resources come from other town-gown communities that have formed public-private task forces with a similar mission to the Civility W orking Group. Each document contains recommended actions to address issues that often arise from off-campus student living in residential neighborhoods. 1. Central Austin Community Development Corporation. 2005. What Other College Communities Have Done: Examples of Regulatory Actions to Preserve the Single-Family, Residential Character of a Campus Neighborhood. http://centralaustincdc.org/fair affordable housing/west urbana na ccupancy.pdf 2. Rutgers University. 2013. Task Force for Off Campus Issues and Concerns: Final Report and Recommendations. http://studentconduct.rutgers.edu/files/documents/OffCampusTas kForceReport.pdf 3. St. Paul P lanning Commission. May 2012. Student Housing Zoning Study: Report and Recommendations. http://www.stpaul.gov/DocumentCenter/Home/View/20436 4. Temple University. 2012. Final Report of the Community and Student Off Campus Issues and Concerns Task Force. http://w ww.temple.edu/studentaffairs/deanofstudents/documents/StudentComm unityOff CampuslssuesTaskForceFina1ReportforW ebsiteNov2012.pdf The remaining four resources listed below are academic studies and white papers on the issues of studentification and town-gown collaborations. 5. Smith, Darren P. 2005. Studentification: the gentrification factory? http://southwarknotes.files.wordpress.com/2012/03/studentification-darren-smith.pdf 6. Smith, Darren P. 2008. The Politics of Studentification and (Un)balanced Urban Populations: Lessons for Gentrification and Sustainable Communities? http://usj.sagepub.com/content/45/12/2541.full.pdf+html 7. U.K. National HMO Lobby. 2008. Balanced Communities & Studentification: Problems and Solutions. http://www.itgau.org/userfiles/files/Nationai%20HM0%20Lobby.pdf 8. Lincoln Institute of Land Policy. 2009. Town-Gown Collaboration in Land Use and Development. http://community-wealth.org/ pdfs/news/recent-articles/11-09/report- sungu-eryilmaz.pdf APPENDIX F: Maintaining Balanced Neighborhoods Page 87 1.a Packet Pg. 102 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Neighborhood Wellness/Community Civility Effort, Final Report | San Luis Obispo, CA Page 28 - Enhancing the quality of life for all residents - 1.a Packet Pg. 103 Attachment: a - Neighborhood Wellness Community Civility Report Final (1299 : Keg Registration) Meeting Date: 12/1/2015 FROM: Chris Staley, Police Captain Prepared By: Christine Wallace, Neighborhood Outreach Manager SUBJECT: ACTION FOR CITY CIVILITY REPORT RECOMMENDATIONS RECOMMENDATION 1. Approve implementation strategies for the City led Neighborhood Wellness/Community Civility recommendations; and 2. Make no changes to the City membership of the Student Community Liaison Committee. DISCUSSION Background On May 19, 2015 Council received the Neighborhood Wellness/Community Civility Report and provided direction to staff to return with implementation strategies for the recommendations detailed in the report. In addition, staff was asked to provide a recommendation to the City Council on the make-up of City representatives on the Student Community Liaison Committee. Neighborhood Wellness/Community Civility Recommendations The Neighborhood Wellness/Community Civility Report was presented to Council on May 19, 2015 (Attachment A.) The report is a comprehensive and highly detailed document which was prepared after a two year research process. A wide variety of recommendations were established in the report, with each recommendation matched to the agency/institution that would be responsible for further exploration and action identification. The following are the recommendations for which the City of San Luis Obispo was identified as the lead agency followed by the staff recommended action. Notably, several of the following recommendations have already been addressed in recent Council actions. Objective 1 – Define short-term actions to enhance the quality of life 1. Investigate establishing a Student Neighborhood Assistance Program (SNAP) Ride- Along program and promote current Police Ride-Along program. Action: The San Luis Obispo Police Department Ride-Along program is available to residents of the city and may be scheduled once per year. It is not currently advertised on the City website but consideration is being made for including information in the FAQs section of the Police Department web content. The SNAP program, staffed by part-time temporary employees of the Police Department, is not staffed or structured to support resident ride-alongs. While SNAP employees receive a great deal of training, it would not be appropriate for them to take responsibility for 14 Packet Pg. 200 1.b Packet Pg. 104 Attachment: b - CAR Civility (1299 : Keg Registration) residents in a ride-along capacity. 2. Explore the option of creating a noise ordinance in public spaces on streets and sidewalks for gatherings of more than 50 people by issuing citations or other alternative options. Action: Not recommended. Chapter 5.80 of the City’s Municipal Code regulates parades and assemblies within the public right-of-way. The City’s Unruly Gathering Ordinance addresses certain gatherings on private property which “spill-out” and obstruct the public right-of-way. Further regulating the ability to gather within traditional public forums could infringe on the public’s right to assemble and/or free speech rights. The amendments made to the Unruly Gathering Ordinance allow the Police Department the ability to more effectively address gatherings that are causing a significant disturbance to a neighborhood. In addition, Penal Code section 415, commonly referred to a “disturbing the peace” addresses some of the unlawful impacts associated with large gatherings. 3. Consider expanding tools to enforce ordinances for nuisance properties including, but not limited to, “tagging” properties that meet a definition of a public nuisance or unruly gatherings in terms of both property-maintenance concerns and behavior issues. Action: Ongoing proactive enforcement by Code Enforcement and the Neighborhood Services Specialists are addressing chronic and nuisance properties. Behavioral issues are addressed by SLOPD in the enforcement of noise and the newly amended Unruly Gathering ordinances and Cal Poly University Police are enforcing municipal code violations (noise, unruly gathering, open container, public urination) in the neighborhoods up to one mile off campus. The Rental Housing Inspection Program will also help better address properties that are lacking basic safety and habitable conditions. All of these efforts should be fully implemented prior to considering another regulation that requires tagging properties that violate certain provisions of the Municipal Code. If the council wishes to pursue this added regulation staff recommends that it be considered after the first full cycle of the Residential Housing Inspection Program. 4. Evaluate policies so that new development or redevelopment does not unduly impact neighborhoods. Action: Action: In progress. Project plan for implementation of General Plan Program 2.13 (Neighborhood Compatibility) to be presented to Council by end of Fiscal Year 2015-2016. Objective Two – Define stakeholders’ needs and success 5. Evaluate best practices and implement strategies to reduce the number of disruptions from parties and noise in neighborhoods (as referenced in Objective Three) Action: Council amended the Unruly Gathering ordinance in August 2015 to strengthen the ordinance as an enforcement tool. Also in August 2015, Council approved the Memorandum of Understanding between the Police Department and 14 Packet Pg. 201 1.b Packet Pg. 105 Attachment: b - CAR Civility (1299 : Keg Registration) Cal Poly University Police (“UPD”) Department allowing UPD the ability to enforce municipal code ordinances up to one mile from campus. SLOPD will continue to evaluate other methods that may help reduce disruptions. 6. Develop and implement a rental housing inspection program. Action: A Rental Housing Inspection Program was adopted by City Council May 19, 2015 and the program is currently in development for phased implementation. Phase 1 – Amnesty to assist in legalizing unpermitted work or existing unpermitted dwelling units starting December 1, 2015. Postcards and flyers will sent out to property owners at the end of November 2015. Phase 2 – Registration of rental units begins January 1, 2016. Information mailed out starting last week of December 2015. Registration deadline will be March 15, 2016. Phase 3 – First Inspection is scheduled for April 2016. 7. Implement educational programs to increase the number of student-aged residents who bring in their trashcans on the same day the trash is picked up. Action: In progress. Neighborhood Services Specialists (NSS) participate in “Walk and Talks” educate residents of the Neighborhood Enhancement Ordinance regulations. NSS conducts proactive enforcement, speaking with residents face to face and using informational stickers that are applied directly to waste wheelers that have not been moved from the street. More challenging locations, such as Hathway Alley, have required a more focused approach from Code Enforcement and Utilities with great success. NSS has also begun outreach to residents at Farmers’ Market on Thursday evenings. 8. Continue to implement strategies to address homelessness in San Luis Obispo particularly in the downtown area). Action: In progress and on-going. SLOPD will continue to work within strongly established community partnerships to provide focused service on identified needs using the Community Action Team (CAT), Downtown Bicycle Officers and patrol services. Engage and collaborated with stakeholders to provide education and awareness opportunities through programs such as the Directed Giving campaign. 9. Implement strategies to reduce traffic issues in neighborhoods. Consider using strategies identified in the Land Use and Circulation Element update to achieve this objective. Action: The City’s Neighborhood Traffic Management (NTM) Program encourages neighborhood residents to work with staff in developing strategies to address identified issues. The objective of the NTM program is to encourage citizens to be directly involved in addressing neighborhood traffic concerns and to provide a process that results in equitable and affordable solutions to the traffic problems in a neighborhood. Neighborhood traffic safety and operational issues on all other streets and intersections fall under the scope of the City’s Annual Traffic Safety and Biennial Traffic Operations Programs. Neighborhood parking issues fall under the scope of the City’s Residential Parking District Program. 14 Packet Pg. 202 1.b Packet Pg. 106 Attachment: b - CAR Civility (1299 : Keg Registration) Objective Three – Identify university/city best practices 10. Work with the City to generate a neighborhood map of housing rental properties and provide outreach to student renters by funding welcome bags for neighbors to distribute to establish positive interactions. Action: Currently, SLOPD Neighborhood Outreach provides rack cards and door hangers to residents wishing to conduct focused outreach to various properties/residents. In addition, the Police Department and Code Enforcement Walk and Talks” are the personal contacts and provision of educational materials to thousands of residents at the beginning of the academic year. Neighborhoods, such as Alta Vista, visit properties annually with a welcome letter sharing information and expectations with new residents. Given limited resources and funding, the City is not in a position to complete this objective. Further discussion to determine program viability is recommended. 11. Create a Renter/Rental Housing Inspection Program Action: See #6 under Objective 2. 12. Implement a Party Registration Program. Develop a program to incentivize party registration that provides the opportunity for the San Luis Obispo Police Department to contact the party registrant and offer a 20-minute warning before dispatching S.N.A.P. or a police officer. Action: Research concept for viability. Analysis of a program that could be created with current resource as well as best practices will be conducted – Fall 2016. 13. Develop proactive engagement of law and code enforcement with visits to properties of concern; “Knock and Talk”. Action: Complete. Neighborhood Officer and Neighborhood Services Specialists Knock and Talks” established in Fall of 2014 and are continuing. Objective Four – Review enforcement best practices 14. City and Cal Poly officials to craft a MOU between the City and University regarding police operational protocol within a one-mile radius of campus. Action: Complete. Council approved the MOU in August 2015. UPD officers were provided training prior to the start of the 2015 academic year and are actively enforcing municipal code violations in the neighborhoods within one mile of campus 15. Partner Cal Poly and Cuesta police officers with San Luis Obispo Neighborhood Officers to coordinate resources and achieve program goals. Action: University Police officers currently partner with SLOPD officers during traditionally busy time periods (start of school, Halloween) as staffing allows. This is 14 Packet Pg. 203 1.b Packet Pg. 107 Attachment: b - CAR Civility (1299 : Keg Registration) possible wth UPD because the campus is contiguous to the City. The use of Cuesta PD officers is not realistic given Cuesta’s lack of proximity to the City and their resources. 16. Implement a keg registration program. Action: Research practicality of keg registration program – present findings to Council in May 2016. 17. Conduct an internal assessment of the San Luis Obispo Police Department staffing to prepare for growth within the city and on the Cal Poly campus to ensure staffing needs match the population. Action: Staffing assessment, primarily patrol and dispatch, is addressed in the Strategic Plan being developed by the Police Department and will be presented to Council in March 2016. 18. Explore the possibility of Cal Poly Police being able to issue City Municipal Administrative Citations. Action: Established per the MOU (#14 above). Objective Five – Engage stakeholders: review current educational & information efforts 19. Create an annual communications plan containing neighborhood wellness messages and a process for communicating the information effectively to maximize resources Action – Communication plan created for Fall/Winter 2015 by a subcommittee consisting of residents, Cuesta Student Government, Cal Poly staff from Orientation, Housing, Greek Life, Administration and ASI, City Code Enforcement and Neighborhood Outreach. The subcommittee will meet every six months to continue with the planning and delivery of neighborhood wellness messaging to ensure effectiveness. Student Community Liaison Committee Established in 1987, the Student Community Liaison Committee (SCLC) serves as a mechanism of communication between Cal Poly, Cuesta College, San Luis Obispo County and the City of San Luis Obispo. The mission of SCLC is to “proactively engage in discussion to promote positive relations, mutual respect and improved quality of life for all citizens of San Luis Obispo.” Per the current SCLC Memorandum of Understanding, the City provides meeting space, two City Council representatives to include the mayor, who is a voting member, and a rotating council member and three voting members: the City Manager, the Police Chief and the Neighborhood Outreach Manager. (Attachment B) SCLC has been an excellent venue for the agencies to share information and work to improve community relationships. In assessment of the City of San Luis Obispo membership, staff recommends that the voting membership of the Mayor, City Manager, Police Chief and Neighborhood Outreach remain unchanged. As there are times when meeting conflicts arise, the 14 Packet Pg. 204 1.b Packet Pg. 108 Attachment: b - CAR Civility (1299 : Keg Registration) Assistant City Manager, Police Captains and Community Development Director would be asked to attend for coverage and participation. Staff also recommends maintaining the rotating Council Member structure as SCLC provides the opportunity to information sharing and community relationship building. CONCURRENCES The Community Development Department, Public Works, and Finance Department concur with the recommendations for action in this report. FISCAL IMPACT There are no fiscal impacts from the recommendations contained in this report. The Rental Housing Inspection Program was approved in May 2015. Funding for the program was adopted as part of the 2015-2017 Financial Plan. The additional actions recommended in this report will be completed with existing resources. ALTERNATIVE 1. Do not approve recommended actions. Request that staff return with further alternative actions at a later date. Attachments: a - Neighborhood Wellness Report - Final b - SCLC MOU Final 5-16-13 14 Packet Pg. 205 1.b Packet Pg. 109 Attachment: b - CAR Civility (1299 : Keg Registration) ABC-544 (9/96) IMPACT Informed Merchants Preventing Alcohol-Related Crime Tendencies State of California Department of Alcoholic Beverage Control Beer Keg Registration 25659.5. Beer keg registration. (a) Retail licensees selling keg beer for consumption off licensed premises shall place an identification tag on all kegs of beer at the time of sale and shall require the signing of a receipt for the keg of beer by the purchaser in order to allow kegs to be traced if the contents are used in violation of this article. The keg identification shall be in the form of a numbered label prescribed and supplied by the department that identifies the seller. The receipt shall be on a form prescribed and supplied by the department and shall include the name and address of the purchaser and the purchaser’s driver’s license number or equivalent form of identification number. A retailer shall not return any deposit upon the return of any keg that does not have the identification label required pursuant to subdivision (a). (b) Any licensee selling keg beer for off premise consumption who fails to require the signing of a receipt at the time of sale and fails to place a numbered identification label on the keg shall be subject to disciplinary action pursuant to this division. The licensee shall retain a copy of the receipt, which shall be retained on the licensed premise for a period of six months. The receipt records shall be available for inspection and copying by the Department or other authorized law enforcement agency. (c) Possession of a keg containing beer with knowledge that the keg is not identified as required by subdivision (a) is a misdemeanor. (d) Any purchaser of keg beer who knowingly provides false information as required by subdivision (a) is guilty of a misdemeanor. (e) The identification label required pursuant to subdivision (a) shall be constructed of material and made attachable in such a manner as to make the label easily removable for the purpose of cleaning and reusing the keg by a beer manufacturer. (f) The Department is authorized to charge a fee not to exceed the actual cost of supplying receipt forms and identification labels required pursuant to subdivision (a). Fees collected pursuant to this subdivision shall be deposited in the Alcohol Beverage Control Fund. (g) As used in this section, “keg” means any brewery-sealed, individual container of beer having a liquid capacity of six gallons or more. Source: California Business and Professions Code 1.c Packet Pg. 110 Attachment: c - ABC544 Forms (1299 : Keg Registration) ABC-544 (9/96) Proper Placement of Identification Tag 1.c Packet Pg. 111 Attachment: c - ABC544 Forms (1299 : Keg Registration) Meeting Date: 4/19/2016 FROM: Derek Johnson, Assistant City Manager/Interim Finance and IT Director Prepared by: Greg Hermann, Principal Analyst SUBJECT: GOVERNMENT FINANCE OFFICERS FINANCE ASSOCIATION RECOMMENDATIONS FOR THE FINANCE AND INFORMATION TECHNOLOGY DEPARTMENT RECOMMENDATION Receive and file a report outlining recommendations from the Government Finance Officers Association for the Finance and Information Technology Department. DISCUSSION Background The 2015-2017 Financial Plan includes budgeted resources to support ongoing efforts to increase the efficiency and effectiveness of City operations. In recent years, Public Works, Community Development, and the Fire Department have all gone through an organizational assessment and planning process to identify best practices for service delivery and cost containment. In fall 2015, the City retained Government Finance Officers Association (GFOA) to engage in a similar assessment for the Finance and Information Technology (FIT) Department. GFOA's mission is to enhance and promote the professional management of governmental financial resources by identifying, developing, and advancing fiscal strategies, policies, and practices for the public benefit. The organization provides best practice guidance, consulting, networking opportunities, publications including books, e-books, and periodicals, recognition programs, research, and training opportunities for those in the public finance profession. Given this breadth of knowledge and experience GFOA is able to offer independent, objective, and best practice-focused consulting services for financial operations in local government. In addition, their focus is to provide “real” and pragmatic solutions based on industry-leading research with organizations located throughout North America. Assessment Report The purpose of this organizational assessment of the FIT department, specifically the finance division, was to assess challenges with recruitment and retention of staff, assess workload demands, and evaluate existing programs and processes and to determine areas for improvement. The report is designed to assist the City with developing a strategic roadmap to improve 2 Packet Pg. 112 organizational efficiency and effectiveness in these areas by implementing recogniz ed best practices. While the report focused on the FIT department, because finance is the starting and ending point of many business practices, the assessment makes recommendations that directly or indirectly impact the entire City organization. To conduct the assessment, GFOA facilitated focused group meetings with City staff, interviewed individual members of FIT and other departments and reviewed process documentation to identify key issues and opportunities. The issues identified in their report represent opportunities that, in GFOA’s professional assessment, offer the City its best opportunity for sustained improvement. GFOA identified four core issues: Issue #1) Need for an integrated financial system Issue #2) Need for a new chart of accounts Issue #3) Business processes improvements Issue #4) Role clarity and alignment GFOA concluded that these four core issues, represented the most significant challenges faced by the City’s finance function and cause ripple effects throughout all City departments . While there have been attempts to address challenges in the FIT department in the past by allocating temporary resources or re-locating functions to other departments, addressing anything outside of these four core issues will only provide temporary relief. Ultimately, what is required for long term sustainability of this key function are foundational changes and improvements. In short, the City has deferred maintenance and investments in support departments, most especially the finance function, and continued deferral is no longer sustainable, efficient, or effective. The GFOA report recognizes that addressing these core issues will take time, a considerable investment and concerted organizational focus. The biggest challenge will be to fundamentally rethink how the City carries out its day to day administrative functions in light of significantly changed financial, technological and operational realities and provide the adequate resources to effectively manage the process changes. In an attempt to provide some short-term relief to the current staffing workload challenges, GFOA identified potential improvement strategies that the City can implement now to provide temporary “quick wins” until longer term systemic changes can be achieved. The next step is to develop an initial project plan with detailed action steps that capitalize on quick wins and streamline business processes with existing staffing resources and technology. The longer term steps include a comprehensive overhaul of business practices and systems. Based on feedback from the City Council, staff will prepare a Significant Operating Program Change (SOPC) for the Council’s consideration for the 2016-2017 Budget Supplement to implement a comprehensive approach to strengthening support departments and business process improvements. 2 Packet Pg. 113 Overview of Core Issues Identified by the GFOA Issue #1 - Need for an integrated financial system The first issue identified is that the City needs to replace its existing financial system. This system, known as Finance Plus, was purchased in 2005. GFOA recommends that the system be replaced with a modern Enterprise Resource Planning (ERP) system. An ERP financial system provides a technological platform to integrate operational areas such as accounting, budget, human resources, purchasing, grants management, business licensing, and vendor contract management into a centralized application. The Cities of Paso Robles and Santa Barbara are both cities in the region that are currently in the process of implementing ERP systems. Updates to the City’s existing financial system are no longer being developed by the company and represent a “silo” technology that has very limited capability to integrate with other business systems. As an example the City currently develops our budget using spreadsheets and because the City financial system’s budget module is inactive this data has to be re-entered which is highly inefficient (data entry and quality control). This hampers the City’s ability to operate as efficiently and effectively as possible and utilize best practices for financial operations. This is a significant recommendation as the implementation of a system requires a substantial investment of both capital and staff and consultant resources. Implementation efforts usually occur over a three to four year period. The direct costs to purchase and implement a system are projected to be approximately $2.25 million. Issue #2 - Need for a new chart of accounts The second recommendation is to generate a new Chart of Accounts (COA) to simplify City’s accounting and budgetary systems. A COA is a list of the accounts used to define each class of items for which money or the equivalent is spent or received. The COA serves as the financial “DNA” of an organization and if improvements to the City’s financial system and business processes are to be realized; the City needs to “redo” its COA through an organization wide effort. GFOA has extensive best practices and resources to guide the City through an overhaul of the COA. The City’s existing COA is unnecessarily complex and is a barrier to improving the City’s business processes and financial management. The existing COA has resulted in proliferation of side systems to create financial reports, poor reporting capabilities, and is inefficient and time consuming to complete monthly bank reconciliations and to prepare for year-end processes, such as the audit and Comprehensive Annual Financial Report (CAFR). While all of this work is being accomplished and the City is receiving clean audits and awards for our CAFR the process is complex and demanding on staff time. Issue #3 - Business processes improvements Many of the City’s business practices have served the City incredibly well over the years and have been a benchmark for many other local governments. Customer expectations and choices have advanced remarkably since the City purchased its current financial system in 2005 and 2 Packet Pg. 114 today we offer many services that were not available (i.e. credit cards, online payments, etc.) then. In an effort to keep up with the public’s needs, the City has developed business practices within currently owned technology capabilities or have purchased side systems to provide expanded services. Over time, the complexity and limitations of the mixture of financial and side systems have become a barrier to continued innovation and improvement of business practices. . Many of these side systems and processes exist in the operating departments and standardizing business processes will allow for the centralization of support functions. GFOA’s report identifies four different business processes that could substantially benefit from new policies and practices. These include: 1) Purchasing 2) Salary and personnel budget process 3) Standardized cash management 4) Accounts payable. The report includes recommendations for each of the four areas. It is worth noting that it is possible for these process improvements to be simplified through a new ERP financial system. Yet, in the absence of a new system, some process reengineer is recommended to ensure that the city implements best practices and maximizes efficiencies to the extent possible given the limitations created by the continued reliance of an outdated system and chart of accounts. Issue #4 - Role clarity and alignment The fourth issue is to improve role clarity and alignment within the department. GFOA has identified numerous instances where finance staff has been assigned inconsistent (and incompatible) tasks that decrease the efficiency and effectiveness of the department. Turnover in the FIT department has resulted in a distribution of responsibilities and roles that GFOA identified as a prime opportunity for efficiency improvements. The recommendations are to: 1) Reorganize the FIT department into two separate departments (Finance and IT), each led by their own Director 2) Cleary define and align roles in the new Finance and IT Departments 3) Create service level agreements with all City departments to clarify the division of responsibilities for tasks 4) Move the utility billing function to the Utilities Department. FISCAL IMPACT Staff has been working with GFOA to evaluate the one-time and ongoing fiscal impacts associated with their recommendations. If implemented, the recommendations will require both one-time and ongoing resources to purchase and implement a new ERP system. These costs include staff to lead the required overhaul of business processes and to implement the ERP system. Staffing would also be identified to support the reorganization into two departments and continue service responsibilities. 2 Packet Pg. 115 The estimated costs to purchase and replace the existing financial system with an ERP system is $2.25 million. The estimated cost for San Luis Obispo is based on their direct costs for purchasing the system with specific recommended adjustments identified by GFOA. The report highlights the ripple effect of issues identified in the GFOA report to other departments. These discussions day lighted the need for temporary resources in both the City Attorney’s Office and Human Resources Departments. A comprehensive SOPC for the 2016-2017 Supplement Budget is being developed to strengthen the support departments (Finance, IT, HR, and City Attorney’s Office). The preliminary estimates for the 2016-2017 Budget Supplement SOPC are ongoing costs of $266,500 and onetime costs of $1.7 million. The 2016-2017 SOPC is being developed within the context of an updated five year forecast that will be presented as part of the 2016-2017 Budget Supplement. Additional resources will be requested as part of the 2017-2019 Financial Plan that will require other one time and ongoing funding. This SOPC will propose a comprehensive approach to strengthening and aligning staff and other resources in support departments so that they can participate in the overhaul of business processes need to meet the service needs of the public and other City departments. When additional analysis about workload is completed, ongoing resources will also likely be needed in the City Attorney’s Office and Human Resources’ Department which will be integrated into a SOPC request for the 2017-2019. These costs will clearly have a significant impact to the General Fund and all the enterprise funds, but are necessary and urgent to implement the key GFOA recommendations. One time and ongoing costs will be directly allocated and fairly distributed to the Enterprise Funds pursuant to the Cost Allocation Plan and other applicable best practices. It is estimated that it will take four to five years to implement all of GFOA’s recommendations. 2 Packet Pg. 116 GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) RESEARCH AND CONSULTING CENTER San Luis Obispo, California March 24, 2016 Organizational Assessment - Finance Final Page 1 of 15 2.a Packet Pg. 117 Attachment: a - GFOA Summary Report (1306 : GFOA Report) Table of Contents Section 1 - Introduction ................................................................................................ 3 Approach & Methodology ....................................................................................................... 3 Section 2 - Analysis and Recommendations .............................................................. 5 Issue 1) Need for an integrated financial system ............................................................... 5 Ripple Effects ......................................................................................................................... 6 Recommendations:................................................................................................................. 7 Quick Hit Recommendations: ................................................................................................. 8 Issue 2) Need for a new chart of accounts ......................................................................... 8 Ripple Effects ......................................................................................................................... 8 Recommendations:................................................................................................................. 8 Quick Hit Recommendations: ................................................................................................. 9 Issue 3) Business process improvements.......................................................................... 9 Ripple Effects ........................................................................................................................10 Recommendations:................................................................................................................10 Quick Hit Recommendations: ................................................................................................11 Issue 4) Role clarity and alignment ....................................................................................13 Ripple Effects ........................................................................................................................13 Recommendations:................................................................................................................13 Quick Hit Recommendations: ................................................................................................14 Section 3 – Recommendation Summary ................................................................... 15 Page 2 of 15 2.a Packet Pg. 118 Attachment: a - GFOA Summary Report (1306 : GFOA Report) Section 1 - Introduction In public sector organizations, the finance function plays an important and often complex role. Not only is finance tasked with performing the accounting functions, it also must serve in a support role for many of the other departments. By coordinating budget, accounts payable, purchasing, billing, distribution and collection of utility bills and business licenses, and other functions, finance is a central player in the overall efficiency of the organization. The purpose of this organizational assessment of the Finance and Information Technology (FIT) department of the City of San Luis Obispo, California (the city), specifically the divisions of the department focused on finance, is to determine areas for improvement. The assessment included the FIT department, as well as other departments and staff that have a role in the City’s financial activities. GFOA’s report is intended to assist the City’s executive management with developing a strategic roadmap that will enable the organization to achieve desired outcomes, adopt recognized best practices, and more effectively serve other city departments and the public. To conduct the assessment, GFOA facilitated focus group meetings with City staff, interviewed individual members of the FIT department and other departments in the City, and reviewed process documentation that is currently available to identify key issues and opportunities. The issues identified in this report represent major areas that in GFOA’s opinion offer the City its best opportunity for improvement. This report is not a comprehensive list of all opportunities for improvement. Our approach to projects is to focus on providing practical guidance and implementing improvements. As part of the conversations with City staff, comments may have been mentioned that did not make it into this report. The exclusion of comments does not necessarily indicate that GFOA did not feel that the issue was significant, but its improvement strategy was not as clear or did not provide the same opportunity as those listed. This report contains a prioritized list of opportunities and recommendations. At the City’s request, we included both long-term recommendations that will provide the foundation for the City’s finance function to be sustainable and successful over many years and short term recommendations that can be implemented in a manner of weeks or months to relieve pressure and provide near term improvements to make time to focus on the more strategic and long term improvements. GFOA has provided additional detail and explanation of its primary recommendations in separate reports for each issue area. documents that Approach & Methodology • Information Gathering and Analysis - GFOA’s standard approach for assessments such as the one conducted for the city is to use a combination of interviews with key stakeholders and a document review process to understand the current situation within the finance office along with other finance related functions – for example, purchasing, contract management, and information technology systems. GFOA then compares the information collected against similar organizations, recognized best practices, and our Page 3 of 15 2.a Packet Pg. 119 Attachment: a - GFOA Summary Report (1306 : GFOA Report) collective experience with other municipal clients to identify potential improvement opportunities. GFOA’s information gathering efforts with the city focused on the following areas using the overall approach and methodology defined by the graphic below.  Supporting Tools and Inputs  Structure and Governance  Outcomes and Results • Report Preparation & Recommendations - Following onsite work at the City, GFOA reviewed materials and information gathered during and after interviews to identify concerns and prioritize opportunities for improvement. Using our expertise, GFOA conducted research and performed gap analyses between the City’s current state and recognized industry best practices along with common practices adopted in local government. Issues explained in this report identify those gaps where GFOA feels there is room for improvement for the City. In making recommendations, GFOA attempted to make suggestions for improvement to the underlying cause of the issue. As a result, many recommendations appear to address core structural, organizational, or process issues that will provide solutions for the long-term. Where possible, GFOA has also attempted to identify smart and appropriate “quick wins” that will provide temporary relief for the City and help free resources to focus on more long-term strategic improvement efforts. • Review & Action Planning - After the City has had an opportunity to review the issues identified in this report and GFOA’s recommendations for improvement, GFOA will be onsite to facilitate a discussion of the recommendations and assist with the preparation of an Action Plan that the city can use to plan implementation activities and track progress toward improvements. GFOA will use Microsoft project to create a project plan that will track key milestones, tasks, and responsible individuals for the project(s). GFOA would then be available to provide further details to the action plan or participate in implementation efforts. Page 4 of 15 2.a Packet Pg. 120 Attachment: a - GFOA Summary Report (1306 : GFOA Report) Section 2 - Analysis and Recommendations The focus of GFOA’s assessment was on the financial processes performed by the Finance and Information Technology department (the “finance function”). Using the conceptual approach communicated by the image displayed in Section 1, GFOA has identified a number of issues that require attention by the City. GFOA has identified the City’s primary “core” issues as the following: Issue #1) Need for an integrated financial system Issue #2) Need for a new chart of accounts Issue #3) Business process improvements Issue #4) Role clarity and alignment These core issues, in GFOA’s opinion represent the most significant problems faced by the City’s finance function. The ripple effects from these core issues contribute to the vast majority of challenges within the finance function. Addressing other issues outside of this core may provide temporary relief, but will ultimately fail to provide lasting improvement. However, GFOA recognizes that addressing these core issues will take time. In an attempt to provide some short-term relief to the current staffing workload challenges, GFOA has attempted to identify potential improvement strategies that can be implemented now and provide temporary “quick wins” until the long-term strategies can go into effect. Issue 1) Need for an integrated financial system The City does not have an integrated financial system that meets the needs of the organization. The SunGard Pentamation system could be described as outdated, inefficient, and incomplete. As a result, City staff must perform extensive manual work arounds and utilize a variety of shadow or additional systems to complete basic tasks that have become routine and/or automated in most other municipal governments. Below are a few examples of missing functionality: 1) Purchasing – The City does not have a central system to manage its purchasing function. Purchase requisitions, purchase orders, and contracts are managed and tracked manually by staff in both the FIT department and in other City departments. In addition, without a purchasing system staff is left to manage encumbrances and budget control manually. 2) Financial and Management Reporting – The system lacks modern reporting features to inform staff, provide decision support, and provide accountability. Almost all departments indicated that they rely on spreadsheets and other side systems to perform basic functions such as budget-to-actual reporting, cost accounting, and payment tracking. This creates manual work that is redundant and inefficient. 3) Project and Grant Accounting – When the City’s chart of accounts was configured in the system, it did not provide the opportunity to track projects and grants in an appropriate way. (See Issue #2) for more information. As a result department staff has largely relied on side systems to track grant and project information. 4) Payroll / Human Resources - The City’s human resources and payroll processes are manually intensive and inefficient, mostly due to the lack of an integrated HR/payroll Page 5 of 15 2.a Packet Pg. 121 Attachment: a - GFOA Summary Report (1306 : GFOA Report) system. Human resource processes require paper based approvals. There is a heavy reliance on manual checklists and spreadsheets to calculate payroll – including some payroll calculations that are done in Microsoft Excel. In addition to the four areas listed above, many features common in most financial systems and in use at many governments across the United States are not available to the City. As a result, processes are not automated and what are simple tasks for other organizations require many hours of work for City staff, and important controls or business rules are not enforced by the system. Examples include: o No systematic workflow o No automated encumbrance accounting o No system-generated notifications or alerts o Lack of integrated modules o Lack of robust security features o Limited integration of third party systems o No automated bank reconciliation o No self-service features o Minimal enterprise-wide use of system functions The fact that the City’s staff completes as much as they do without these essential tools is in itself an achievement. However, for a finance office to be considered high- performing and meet the current needs and challenges that municipalities face, a quality financial system is an essential tool. Ripple Effects As a result of not having a modern financial system, there are many ripple effects that have reduced the effectiveness and/or efficiency of the finance function. GFOA found the following areas for improvement. • Reliance on manual processes – The City relies on many manual processes. Manual processes are inefficient, limit the level of transparency into the process, are prone to errors or inconsistency, and often result in redundant work. • Informal Processes – City staff reported many processes that involve or originate with communication of phone calls or emails. This type of process is difficult to track and is susceptible to variation. • Bank Reconciliation – The City’s bank reconciliation is overly complicated and requires significant time. City staff reported that it takes an entire day to gather information for bank reconciliation. The whole bank reconciliation process takes too much time. • Proliferation of side systems – In almost every meeting GFOA conducted, staff highlighted how side systems are used to perform critical finance functions. This is a common occurrence in many organizations with weak financial systems. However, existence of side systems only seems to exacerbate the situation and create the need for more side systems as information is further fragmented and the primary system’s use is further limited. • Difficulty in obtaining financial information – The existence of side systems and the difficulty in reporting from the main financial system has led to difficulty in easily obtaining current financial information. For example, because commitments (encumbrances and pre-encumbrances) are not tracked in the system from the Page 6 of 15 2.a Packet Pg. 122 Attachment: a - GFOA Summary Report (1306 : GFOA Report) beginning of the purchasing process budget-to-actual numbers cannot be reported unless a side system is used. The existence of these systems (and the need to manually duplicate information) presents the opportunity for errors. Different departments track this information in different ways and without a reliable standard process. • Roles and Responsibilities – One of the core guiding principles of efficient processes and modern financial systems is that information is captured at its origination point. Once information or data are captured in the system, it can be used throughout the organization, tracked, and reported on. Because the City relies on many paper based processes, it creates the need for staff in finance to spend time keying in information. This effort is redundant and not an optimal use of finance staff time. Recommendations: A. Implement new ERP system - GFOA recommends that the City pursue a strategy to implement a new enterprise resource planning (ERP) system that would include financials, procurement, human resources, payroll and other related functions. Modern ERP systems offer integrated functions combined with modern features such as self- service, workflow, improved analytics, and automation of business process. Implementation of a new ERP system is as much about process change as it is about technology. For projects to be successful, an organization must simplify, streamline and standardize processes, work diligently to train users and manage the overall organizational change. In addition, organizations require focus on a shared vision and the leadership to see the vision through. When implemented successfully, the ERP system will put the needs of the organization above the needs of an individual department and any diversion from this creates the risk to derail the effort. For this reason, GFOA recommends that the City put a moratorium on new system implementations until the core ERP system is established. Other projects will divert resources and divert attention from the ERP system. Also, more importantly and more detrimentally to the system, it will signal weakness in the City’s ERP vision. B. Identify formal governance structure and document with project charter - The scope of a financial system implementation project goes beyond the finance office and IT office. The finance system is viewed by all organizations to conduct their business and the approach to the project needs to consider all of these various stakeholders. In addition, because of the many stakeholders, it is essential to clearly communicate project expectations, roles, and decision authority. A formal governance structure and project charter provides this clarity. GFOA recommends establishing a steering committee made up of City executive leadership and management staff from key stakeholder departments. The City would then establish a project team that identifies an individual to serve as the “lead” for each process/functional area. Lastly, the governance structure should identify subject matter experts or staff throughout the City that contribute to processes/functions. Once a structure is identified, the City will need to clearly define the role of each with respect to the project. A project charter is a document that contains these descriptions along with overall goals for the project, guiding principles, and a clear vision of project success. After implementation, the project governance structure could be maintained in some format to help guide overall use of the system. Many organizations use a steering committee to evaluate and prioritize improvement opportunities with the system or the Page 7 of 15 2.a Packet Pg. 123 Attachment: a - GFOA Summary Report (1306 : GFOA Report) business case from any new systems that may be contemplated. It is important to make sure that new systems are planned with the same ERP vision. Quick Hit Recommendations: C. Develop system inventory - Because of the City’s extensive use of side systems, it will be important that the City inventory these systems. Moving forward, having an accurate system inventory (including all spreadsheets and custom developed systems) will be important to business process improvement efforts and the process to transition away from the current environment to one that relies on a modern financial system. Issue 2) Need for a new chart of accounts The City’s chart of accounts is unnecessarily complex, redundant, ineffective, and makes everything that the City does from a financial management perspective more difficult. A simpler chart of accounts that is, organized, logical, well understood, and detailed enough to facilitate organization wide planning (budgeting), tracking, reporting, and facilitation of business processes is needed. The chart of accounts forms the foundation of not only the finance system but of all financial transactions. GFOA has experience with organizations that have ended up with a chart of accounts similar to the City’s current situation. It is often the result of growth, inconsistent use over time, and an inflexibility of the system (or the set up) to accommodate change. For example, based on conversations with staff, as the need for tracking new projects, grants, or programs arose, the City would need to “force” the chart of accounts to handle this. Often this resulted in using a segment for a purpose other than what was originally intended. This then fragmented information, made reporting more difficult, and led to challenges that often required shadow systems. As more and more was added, the City began running out of available values. The result then was to start “fitting in” new accounts where there was room which further weakened the chart of accounts. As a result, most departments use Microsoft Excel to track key information. Ripple Effects • Proliferation of side systems – In almost every department, side systems have been created to track financial information at a more detailed level than the chart of accounts easily allows for. This includes projects, grants, programs, or initiatives. Every side system then represents an instance of redundant data entry, potential error, and an ongoing need for reconciliation and maintenance. • Poor Reporting – The state of the City’s chart of accounts makes it extremely difficult to extract or report quality information. As a result, the City does not get timely budget-to- actual reports. • Time Consuming End of Year Processes – As referenced above, the complex and unorganized chart of accounts makes every process and transaction that the City completes more difficult. This is especially true at year end where staff must reconcile many different systems, perform adjusting entries, catch up with batch processes, etc. Recommendations: D. Identify team for CoA development – Chart of account development is an activity that must include representatives from beyond finance. GFOA recommends that the City establish a team made up of representatives from many departments to identify a structure and help define values for the chart of accounts. Page 8 of 15 2.a Packet Pg. 124 Attachment: a - GFOA Summary Report (1306 : GFOA Report) E. Develop new chart of accounts – See separate report. Quick Hit Recommendations: F. Identify existing accounts that are not used – A large part of the complexity with the City’s chart is due to the many accounts that are no longer used. Where possible the City should combine accounts, eliminate old accounts, and attempt to simplify the structure in the transition period before the new chart and new system are implemented. In addition to making it easier in the short-term, it will also ease the transition to the new chart and new system. Issue 3) Business policy and process improvements Many of the outdated and redundant business processes in use throughout the City can be attributed to the lack of a financial system, as explained under issue #1. However, GFOA has also identified a number of improvement opportunities independent from the financial system. In general, the existence of a financial system will automate existing processes and will provide some improvement. However, the system is only a tool and improvements based solely on the tool will only go so far. Those business processes are explained below. 1) Purchasing - The City lacks an established and centralized purchasing position. The existing system does not have dedicated, purchasing staff, that can to manage the procurement of city goods and services and the management of city contracts. An improved process would clarify roles and responsibilities regarding who will work on the purchasing activities and reduce the effort to make City purchases and still be consistent with City policies and State Law. Any purchasing processes are run primarily through the departments with some coordination by the finance staff. While finance is an approver at the end of the process, the manual nature of the process can lead to inconsistency. GFOA also feels that the assignment of purchasing roles within finance was not made in an effective way. For example, one person is responsible for entering vendors, sending PO’s, and processing payments creating potential issue with non-separation of duties. In addition, the current function relies on unnecessary manual process. Every PO has a manual file folder created where the total amount remaining on the PO is tracked. In addition, finance staff focusing on accounting tasks are asked to be involved with the bid and RFP process and then the subsequent management of contracts. This diversity of role creates unnecessary confusion, timeliness issues and potentially work quality issues. Purchasing is not typically a process where work can be set aside and then batched at weekly intervals. Throughout GFOA’s meetings, staff often commented on the inconsistent turnaround for purchasing tasks. Staff also commented that when contacted, finance staff is often very good about turning around tasks that are time/date sensitive. However managing purchasing workload based on philosophy of the “squeaky wheel” is not sustainable in the long-term. 2) Salary and Personnel Budget Process - Every department head GFOA met with expressed frustration with salary forecasting and personnel budgeting. Department heads are not comfortable with the process to obtain system-generated data; the process is cumbersome and unnecessarily complex. Department heads are using Excel, not system data to budget for personnel and salaries. This is because the City’s Page 9 of 15 2.a Packet Pg. 125 Attachment: a - GFOA Summary Report (1306 : GFOA Report) Pentemation system does not have a budgeting or Human Resource Information System (HRIS) tool that is commonly used to model and forecast salaries. 3) Standardized Cash Management - The City has many points of cash collection. Revenue collection systems are not interfaced to the general ledger and the City does not have a standardized process or technology across the organization. In most cities, the various business functions require that revenue be collected at multiple locations. However, each location should be following a consistent set of rules to make coordination of the overall revenue collection effort more efficient. 4) Accounts Payable – The City lacks an efficient process for reviewing, approving, and processing invoices because of the current lack of a complete financial system. The use of the manual PO folder is inefficient and confusing. The process of running reports and reconciling those reports to Excel spreadsheets and paper logs is redundant and inefficient. Ripple Effects • Best” practices will help improve productivity and morale: GFOA reviewed business processes across the finance function. In general, GFOA did identified opportunities to , implement, and maintain financial management using best practices. While it is clear that City staff are capable of this effort and in many cases have led efforts independently to gain improvements, there has not been an organization-wide effort or coordinated effort to adopt modern industry best practices. Technology and the existing COA have been a significant barrier to this occurring. The City should be commended for the initiatives completed so far, however GFOA feels that without addressing the underlying “core” benefits were lessened and will continue to be limited. • Clearer Processes. GFOA defines clear processes or transparency as an overall understanding of the subject. Process transparency or the ability for key process stakeholders to understand both the approach and purpose to business process requires that stakeholders understand both what decisions were made and how they were made. Recommendations: G. Establish a purchasing function - A city that is experiencing growth such as San Luis Obispo, should have a dedicated purchasing department/division and resources to manage vendors, the procurement of goods and services, and ongoing contracts. GFOA recommends the City review and/or revise/create: a. A revised set of purchasing policies b. Revised purchasing processes c. Revised purchasing thresholds / approval authority d. Purchasing division with dedicated purchasing staff H. Consider Pooled Cash Approach – It is generally considered a best practice to adopt a pooled cash concept within the City where the City would manage all cash in one “cash fund.” The relationship between the “cash fund” and other funds would be maintained through due-to/due-from entries to identify the commitments of each fund for Page 10 of 15 2.a Packet Pg. 126 Attachment: a - GFOA Summary Report (1306 : GFOA Report) cash. This would allow all cash transactions to occur in one fund and from one bank account. I. Streamline Budget Process/Document – As stated above, the City puts considerable effort into its budget process. GFOA is not recommending that the City eliminate any of the budget process features that are effective and a core part of the City’s budgeting culture (such as the citizen participation process). However, we are recommending that the City carefully consider the purpose of each activity in the budget process and its direct relationship on budget decisions. At its core, an organizations budget process should be about identifying goals, determining the cost to achieve those goals, and then making any necessary prioritization decisions. Staff commented that the City’s budget document is difficult to prepare and can be difficult to understand. Because the City spends such a large amount of time on the budget process and budget document, GFOA feels that it could significantly reduce effort while still maintaining the important elements the City is proud of and are effective. GFOA recommends that the City take a fresh look at the budget document from a stakeholder perspective or consider surveying various types of stakeholders to determine what is necessary in the budget document. Quick Hit Recommendations: J. Streamline purchasing process - The city department heads are required to provide a purchasing report for purchases over $25,000 to the city manager for approval, even if the funds for goods and services have been budgeted and approved in the budget process (e.g. truck). This can be inefficient for department heads to provide a detailed purchasing report to the city manager. These purchasing memos create a lot of extra, work (emails and phone calls) for department staff, in addition to the city manager. While GFOA acknowledges the level financial controls that the City wants to implement, GFOA believes these purchasing memos to be unnecessary. GFOA considers that the City identify a simple purchase requisition form that can be used for all purchases. GFOA also recommends that the City modify its purchasing workflow and identify alternate approvers (or potentially department only approvers) for small dollar amount POs. K. Hold departments accountable for quality – Staff made repeated comments during interviews and focus group meetings (across many functional areas) that there was a considerable amount of time spent correcting errors made at prior points in a process. In some cases, the errors could be process requirements that are more difficult than necessary for example, personnel forms require departments to add information that is not germane to current transition. Regardless of the source or reason for the error, GFOA recommends that the City focus on eliminating those errors and hold staff accountable for “doing it right the first time.” GFOA advocates for a policy of “sending it back” rather than fixing the error. In addition, City leadership will need to hold staff accountable for quality. L. Transfer responsibility for tracking POs to departments – The City’s purchasing process is mostly run by departments (or the analysts) in departments due to the lack of a procurement function. However, the FIT department manages all paperwork. To reduce work temporarily, the City could require that the departments assume responsibility for monitoring the POs, ensuring invoices match the PO, and that payments don’t exceed the total PO amount, etc. FIT would be responsible for setting policy and providing random checks/audits to ensure compliance with those policies. Page 11 of 15 2.a Packet Pg. 127 Attachment: a - GFOA Summary Report (1306 : GFOA Report) M. Develop revised cash handling policy – The City should define and document a formal policy with respect to handling cash (including cash, checks, and credit card transactions). The policy should: a. Require standardization among all departments b. Include internal control procedures c. Require that departments accepting cash perform certain quality assurance steps (potentially including: completing deposit slips, reconciling deposits, completing City forms, etc.) N. Consider automation or outsourced services – During the period of time when the City is implementing long term solutions, the City may want to consider implementing temporary changes to relieve staff from certain functions. These services could include any of the following: a. Lockbox services 1 – Lock box services will decrease the amount of processing for City finance staff b. Online payments – The City could implement an online electronic payment portal for City invoices that would decrease the amount of time required for processing payments. c. Accounting services – Temporary staffing firms can provide accounting resources to help reduce workloads from staff during the project transition. d. Outsource to departments – For departments with regular cash handling functions, the City could consider allowing those departments to make cash deposits directly with the bank. The finance office would continue to play an audit and reconciliation role, but reducing daily cash handling could free up staff time. O. Identify appropriate service levels – In many cases, the City might have to accept that current services levels are not sustainable during the project period (where staff have additional responsibilities). It might be necessary to decrease service levels or suspend performing certain tasks. For example the following options could be considered: a. Shift away from batch processes – Reducing then number of batch processes will reduce the time spent on these large manually intensive tasks. GFOA recommends the City explore using on-time processing for functions such as fixed asset acquisition, bank reconciliation, cash deposit handling and others. b. Shift responsibility to departments and use finance staff to audit process/transaction. – The City is in a position to leverage the analysts that exist in the departments to play a larger role in finance activities. Many of these analysts are performing finance tasks now in a redundant fashion. By pulling in these analysts into a larger “team” effort to distribute work could free up resources to focus on more strategic long-term initiatives. c. Reduce counter hours – The City could reduce the hours that the finance counter is open or reduce the service levels presented to either external or internal customers. 1 In banking, a lock box is a service offered by commercial banks to organizations that simplifies collection and processing of account receivables by having those organizations' customers' payments mailed directly to a location accessible by the bank. Page 12 of 15 2.a Packet Pg. 128 Attachment: a - GFOA Summary Report (1306 : GFOA Report) Issue 4) Role clarity and alignment GFOA reviewed the organization chart for the finance function. While it provides an assignment of key processes to role, it does not provide sufficient guidance to staff carrying out those duties. In addition, GFOA has identified numerous instances where finance staff has been assigned inconsistent (and incompatible) tasks that decrease the efficiency of the role. In an ideal structure, roles will be distributed to take advantage of skillsets and available staffing. The distribution of work is important to producing high performance and the absence or ineffective performance of roles is often a source of poor results. Key organizational roles are listed below. • Executives - create vision, set priorities, and define business strategy • Managers - align work with strategies and simplify-eliminate-automate work • Supervisors - address exceptions so workers can conduct routine work • Workers - perform routine tasks In smaller organizations it is common and acceptable for some individuals to serve more than one role. However, even if the same person is performing multiple roles, each role must be performed well or the organization suffers. In addition, to perform well, the individuals in these roles must understand the requirements of the role. In our review we identified some areas where roles were not clear or simply not filled. As discussed above, this often becomes the source of inefficiency or sub-optimal results. Using the above referenced organizational roles, GFOA found the following: 1) The City has suffered from turnover at the department leadership level. As a result, the department has lacked consistent leadership that could effectively set policy or vision for the department or support staff. Staff at other levels then either had to fill this void or continue to operate without clear direction. The department has benefited from the current interim leadership, but filling the role on a permanent basis is necessary to support lasting change. 2) With leadership turnover in the department, it also suffered from a lack of prioritization. 3) Each finance staff position often fulfilled a combination of “Manager,” “Supervisor,” and “Worker,” roles. As a result, efficiency suffered and staff seemed to be interrupted regularly leading to inefficiencies and an inability to meet stakeholder expectations for turnaround times. Ripple Effects • Inability to Meet Stakeholder Expectations - Based on interviews with department representatives, there is significant room for improvement in both setting expectations and working to meet expectations. In many cases, City staff recognized the hard work of finance staff, but also general lack of understanding of department functions. Almost all discussions with focus groups and one-on-one interviews with city staff indicated frustrations that roles and responsibilities among finance staff are not clear. This lack of clarity of roles and responsibilities creates instances where work may be late, then rushed to complete, and can result in instances were quality can be poor. Recommendations: P. Reorganize the FIT department into a finance department and an IT department – GFOA believes that the City’s finance needs can be best served under a department Page 13 of 15 2.a Packet Pg. 129 Attachment: a - GFOA Summary Report (1306 : GFOA Report) that is allowed to focus on finance (the same would be true for IT and the City’s IT needs). While GFOA believes that the current challenges are not caused by the combined structure, implementing the necessary improvements will be much easier with split departments. In addition, recruiting a replacement finance director with the necessary finance and leadership skills will be easier if that individual also does not have to oversee IT. (See separate report for more information). Q. Clearly define roles for each position in FIT – GFOA reviewed the org chart that identified the responsibilities and roles of each position. However, some responsibility assignments are not clear and in areas where multiple positions contribute to a function, it is not clear who has overall accountability for this function. (See separate report for more information). R. Create service level agreements for all central FIT functions – Setting clear expectations and defining and documenting specific roles for business processes is essential. For processes that cross departments, GFOA strongly recommends that the City create and implement service level agreements to clearly set expectations. Service level agreements are like contracts between departments to provide services and the contract sets key terms (level of quality, turnaround time, escalation triggers, etc.). (See separate report for more information). S. Move utility billing function to the Utilities Department- Two finance staff that work on utility billing collections have been physically moved out of the finance department into utility billing to focus on collection efforts and customer service. This arrangement, while not intended to be long term, has resulted in positive changes in utility billing operations. Customer services complaints have improved as the number of complaints have been reduced, collections have increased as staff have been able to focus on the collection of late bills and changes payment plans, and utility billing has been able to document processes and procedures that didn’t exist or were outdated. GFOA recommends that these staff positions be permanently transferred out of the FIT department. With the overall changes expected to the finance office, GFOA feels that it is best to separate these positions from the FIT department prior to that split. Quick Hit Recommendations: T. Re-assign job responsibilities so FIT staff can specialize - Having staff specialize in a limited set of the FIT department’s functions will allow staff to take ownership over the issue, limit distractions, and manage workload. U. Use analysts to provide back up to FIT – The challenges facing the FIT department are challenges that face the entire organization. Helping the FIT department become more efficient should not be the responsibility of FIT alone. As stated above, many analysts already perform similar functions for their department and do so in a redundant fashion without a system. GFOA recommends that the City work on leveraging these resources more at the finance level during the City’s project period to implement the long-term improvements. Page 14 of 15 2.a Packet Pg. 130 Attachment: a - GFOA Summary Report (1306 : GFOA Report) Section 3 – Recommendation Summary GFOA has developed recommendations that have been inserted into this report and aggregated below. GFOA will be reviewing these draft recommendations with City staff. GFOA will work with the City to assist in the development and facilitation of the action plans. In addition, GFOA will assist in providing best practice recommendations and conduct research where appropriate. Recommendation Accountable Quick Win? A Implement new financial system Executive Leadership B Identify formal governance Executive Leadership C Develop system inventory IT Yes E Develop new chart of accounts Accounting Manager / FIT Staff / Department Staff F Identify unused accounts Accounting Manager / IT / Department Staff Yes G Establish a purchasing function Purchasing manager H Pooled cash FIT Leadership / Accounting Manager I Streamline budget process/document Executive Leadership / Budget Manager J Streamline purchasing process Purchasing Manager/ FIT Leadership Yes K Hold departments accountable for quality Executive Leadership Yes L Transfer responsibility for tracking POs to departments Executive Leadership Yes M Develop cash handling policy Revenue Manager Yes N Consider automation or outsourced services FIT Leadership/ FIT Staff Yes O Identify appropriate service levels FIT Leadership Yes P Reorganize the FIT department Executive Leadership Q Clearly define roles for each position in FIT Finance Staff R Create service level agreements for all central FIT functions Finance Staff / Departments S Move utility billing staff to utility billing Executive Leadership T Re-assign job responsibilities so FIT staff can specialize Finance Staff Yes U Utilize analysts within FIT Executive Leadership Yes Page 15 of 15 2.a Packet Pg. 131 Attachment: a - GFOA Summary Report (1306 : GFOA Report) Meeting Date: 4/19/2016 FROM: Christine Dietrick, City Attorney Prepared By: Jon Ansolabehere, Assistant City Attorney SUBJECT: RECONSIDERATION OF COUNCIL DIRECTION TO STAFF REGARDING DEMOCRACY VOUCHER FUNDING FOR MUNICIPAL ELECTIONS RECOMMENDATION Reconsider the Council’s action on March 15, 2016 regarding the citizen proposed “Ordinance to create a system of Democracy Voucher funding for municipal elections” and give direction whether the Council desires staff to review and analyze the proposed ordinance for additional Council consideration. DISCUSSION At its March 15, 2016 meeting, the Council, on a 3:2 vote (Mayor Marx and Council Member Christianson opposed) gave direction to City staff to move forward with evaluating and bringing forward for introduction an Ordinance establishing a “Democracy Voucher” funding mechanism for municipal elections. At the City Council’s April 5, 2016 meeting, Vice Mayor Carpenter, who voted with the majority on March 15th, requested that the Council reconsider and agendize this item for a future meeting. The request was made in accordance with Council Policies and Procedures (Section 1.2.6) and was approved unanimously at the City Council meeting on April 5, 2016. A copy of the March 15, 2016 staff report is attached (Attachment A). 3 Packet Pg. 132 3.a Packet Pg. 133 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 134 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 135 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 136 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 137 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 138 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 139 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 140 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 141 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 142 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 143 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 144 Attachment: a - 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3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 181 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 182 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 183 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 184 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 185 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 186 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) 3.a Packet Pg. 187 Attachment: a - 3.15.16 Staff Report (1317 : Democracy Vouchers) San Luis Obispo Page 1 Tuesday, February 16, 2016 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 16, 2016 at 4:00 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. ROLL CALL Council Members Present: Council Members John Ashbaugh (Arrived at 4:08 P.M.), Carlyn Christianson, Dan Rivoire, Vice Mayor Dan Carpenter, and Mayor Jan Marx. Council Members Absent: None City Staff Present: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; Derek Johnson, Assistant City Manager; and John Paul Maier, Assistant City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. BUSINESS ITEM 1. ADOPTION OF RESOLUTIONS AND AGREEMENTS CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE INCORPORATED AREAS OF THE CITY OF SAN LUIS OBISPO TO PARTICIPATE IN PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAMS (CODRON/FOWLER – 30 MINUTES) Community Development Director Codron and Community Development Deputy Director Fowler provided a PowerPoint presentation entitled “Property Assessed Clean Energy” summarizing the staff report and responded to Council inquiries. ACTION: MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER RIVOIRE, CARRIED 4-1 (COUNCIL MEMBER CARPENTER VOTING NO) to: 1. Adopt Resolution No. 10690 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, consenting to the inclusion of properties within the City’s jurisdiction in the California Hero Program to finance distributed generation renewable energy sources, energy and water efficiency improvements and electric 8.a Packet Pg. 188 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of February 16, 2016 Page 2 vehicle charging infrastructure and approving amendment of the Joint Powers Agreement related thereto.” 2. Adopt Resolution No. 10691 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, consenting to the inclusion of properties within the City’s jurisdiction in the California Home Finance Authority Community Facilities District No. 2014-1 (Clean Energy) to finance renewable energy improvements, energy efficiency and water conservation improvements and electric vehicle charging infrastructure and approving associate membership in the joint exercise of powers authority related thereto.” 3. Adopt Resolution No. 10692 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, consenting to the inclusion of properties within the City’s jurisdiction in the California Home Finance Authority, program to finance renewable energy generation, energy and water efficiency improvements and electric vehicle charging infrastructure and approving associate membership in the joint exercise of powers authority related thereto.” 4. Authorize the Mayor to enter into and sign the individual agreements with the PACE program providers. Steve Delmartini, San Luis Obispo, submitted a correspondence to the City Council and suggested postponing approval of Item 1 (Hero Program). Dustin Reilich, Home Energy Renovation Opportunity, stated that the HERO program does not have prepayment penalties and spoke about the process of acquiring licensed contractors. Bryan Garey, Ygrene, stated that the Ygrene follows all PACE requirements. PUBLIC COMMENT ON CLOSED SESSION ITEMS A representative of the International Fire Fighters Association Local 3523 spoke about Item B. The City Council adjourned to Closed Session (held in the Council Hearing Room). CLOSED SESSION Note: Councilmember Carpenter abstained from participation in portions of discussions relating to the San Luis Obispo Police Officers’ Association due to personal objectivity concerns related to a family interaction with Association members. A. CONFERENCE WITH LEGAL COUNSEL –EXISTING LITIGATION Paragraph (1) of subdivision (d) of Government Code § 54956.9; Name of case: San Luis Obispo Police Officers Association v. City of San Luis Obispo; State of California Public Employment Relations Board Case No. LA-CE-729-M 8.a Packet Pg. 189 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of February 16, 2016 Page 3 B. CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 Agency Negotiators: Monica Irons, Katie Lichtig, Derek Johnson, Greg Zocher, J. Christine Dietrick, Jon Ansolabehere, Rick Bolanos, Deanna Cantrell Represented Employee Organizations: San Luis Obispo City Employee’s Association (SLOCEA) San Luis Obispo Police Officer’s Association (POA) San Luis Obispo Police Staff Officer’s Association (SLOPSOA) International Association of Firefighters Local 3523 Unrepresented Employees: Unrepresented Management Employees Unrepresented Confidential Employees At 6:00 p.m., the Council reconvened the Regular Meeting. All Council Members were present. PLEDGE OF ALLEGIANCE Council Member Ashbaugh led the Pledge of Allegiance. CITY ATTORNEY REPORT ON CLOSED SESSION City Attorney Dietrick stated that there was no reportable action. PRESENTATIONS 2. PROCLAMATION - HISTORY CENTER OF SAN LUIS OBISPO COUNTY MUSEUM'S 60TH ANNIVERSARY (MARX – 5 MINUTES) Mayor Marx presented a Proclamation to Julie Moore, History Center Board President and Eva Ulz, Curator & Director of the History Center of San Luis Obispo, recognizing the History Center Museum’s 60th Anniversary. 3. PROCLAMATION - SPAY DAY USA (MARX – 5 MINUTES) Mayor Marx presented a Proclamation to Ira Alpert of the Feline Network of the Central Coast, proclaiming February 23, 2016, as “Spay Day USA” in the City of San Luis Obispo. PUBLIC COMMENT PERIOD David Brodie, San Luis Obispo, expressed concerns about requests for height exceptions. Richard Schmidt, San Luis Obispo, cautioned the City Council to prepare for flooding, maintain creek areas and consider the adoption of a creek inspection program. Steve Barasch, San Luis Obispo, urged the City to properly maintain City owned properties along the creek to ensure safety in the event of a flood. 8.a Packet Pg. 190 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of February 16, 2016 Page 4 San Luis Obispo residents Bob Shanbrom, Stephen Hanson, Bob Lucas, Elisabeth Abrahams, and Mila Vujovich-La Barre expressed concern regarding current water resources and some urged the adoption of a building moratorium. Donald Hedrick suggested that the current drought is a product of geoengineering. Allen Root, San Luis Obispo, emphasized the need for a five-year plan for the maintenance and preservation of public. Harry Busselen, San Luis Obispo, expressed support for the rental housing inspection program. Allan Cooper and Joseph Abrahams of San Luis Obispo voiced concerns about the number of alcohol outlets in the downtown area and increased crime rates. San Luis Obispo residents Steven Ferrario and Jacquoline Williams urged the Council to reconsider the rental housing inspection program. Graham Updegrove, also of San Luis Obispo, urged the City Council to temporarily suspend the program and place it on the ballot for the upcoming 2016 election. Dominic Tartaglia, Downtown Association, provided comments regarding the Box Art Program and restoration process. By consensus, the City Council directed staff to agendize consideration of a policy change to the Box Art Program, with a specific focus on the temporary nature of the art. CONSENT AGENDA Public Comments: Donald Hedrick, San Luis Obispo, urged the City Council to consider additional affordable housing, while maintaining tourist attractions such as view sheds. Roy Ogden, Applicant Representative, speaking regarding Item #11 stated that his client owns the property, well, and water, and further, that the use of water complies with City standards. ACTION: MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to approve Consent Calendar Items 4-11. 4. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES ACTION: Waived. 5. MINUTES OF THE CITY COUNCIL MEETING OF JANUARY 5, 2016 (MAIER) ACTION: Approved. 8.a Packet Pg. 191 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of February 16, 2016 Page 5 6. HOUSING AUTHORITY REQUEST TO REASSIGN AND EXTEND LEASE FOR CITY OWNED PROPERTY LOCATED AT 1090 AND 1092 ORCUTT ROAD, AND 1105 LAUREL LANE (CODRON/WISEMAN) ACTIONS: 1. Approved and authorized the City Manager to execute an Assignment and Assumption of Lease Agreement for City owned property located on Orcutt Road from Laurel Creek Apartments, LP to the Housing Authority of the City of San Luis Obispo. 2. Approved and authorized the City Manager to execute an Amended and Restated Ground Lease with the Housing Authority extending the lease agreement for an additional seventy-five years. 7. REVIEW OF AN EXCHANGE OF PROPERTY BORDERING A PARCEL AT 2881 BROAD STREET (CODRON/OTZELL) ACTION: Adopted Resolution No. 10693 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Real Property Exchange Agreement with the property owner(s) of 2881 Broad Street, to exchange City surplus property, being a portion of Lot A of Tract 1150, for property along the northerly edge of Perkins Lane (SDBV-1990-2015).” 8. 2015 ASSISTANCE TO FIREFIGHTERS GRANT APPLICATION (OLSON/COX) ACTIONS: 1. Authorized Fire Department staff to continue the process for a grant application to Federal Assistance to Firefighters Grant Program in the amount of $23,840 to purchase one Respirator/Self-Contained Breathing Apparatus (“SCBA”) Quantitative Fit Tester and one Extractor Washer. 2. Authorized the City Manager to execute documents necessary to appropriate the grant funds upon notification that the grant has been awarded. 3. Delegated the Purchase Authority to the Finance and Information Technology Director to review quotes and award contracts or purchase orders. 9. ORDINANCE NO. 1628 (SECOND READING) - MUNICIPAL CODE TITLE 10: VEHICLES AND TRAFFIC AMENDMENTS (GRIGSBY/HUDSON) ACTION: Adopted Ordinance No. 1628 (2016 Series) entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Municipal Code Title 10 regarding Vehicles and Traffic,” to reflect current City organizational structure. 8.a Packet Pg. 192 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of February 16, 2016 Page 6 10. AUTHORIZE THE CITY MANAGER TO APPROVE CONTINUED CONSULTANT SERVICES WITH LIEBERT CASSIDY WHITMORE (IRONS/FLETCHER) ACTION: Authorized the City Manager to approve up to $100,000 in continued consultant services with Liebert Cassidy Whitmore (LCW) in fiscal year 2015-16 as necessary to provide labor relations and specialized employment services. 11. WELL SITE RELINQUISHMENT AT 1460 CALLE JOAQUIN (QUIKY CAR WASH) (MATTINGLY/FLOYD) ACTION: MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to approve and authorize the Mayor to execute the Quit Claim Deed and Indemnification Agreement Affecting Real Property and Bill of Sale for the well at 1460 Calle Joaquin. STUDY SESSION 12. CONCEPTUAL REVIEW AND PRELIMINARY FEEDBACK FOR A PLANNED DEVELOPMENT TO ALLOW BUILDING HEIGHTS UP TO 75 FEET FOR A MIXED-USE PROJECT THAT INCLUDES AN 80-ROOM HOTEL, 26,000 SQUARE FEET OF RESIDENTIAL UNITS, 20,000 SQUARE FEET OF RETAIL/RESTAURANT SPACE, 33,000 SQUARE FEET OF OFFICE SPACE AND A 45-FOOT TALL PARKING GARAGE AND TRANSIT CENTER (CODRON / COHEN – 120 MINUTES) Council Member Ashbaugh recused himself from deliberations on this item because his spouse leases property within 600’ of the subject site. Community Development Director Codron and Associate Planner Cohen provided a PowerPoint presentation entitled “1101 Monterey OTHR-2484-2015” summarizing the staff report and responded to Council inquiries. Applicant representatives Andrew Firestone and Pam Ricci summarized the plans submitted for conceptual review and responded to Council inquiries. Public Comments: Ken Trigueiro, People’s Self-Help Housing, Pete Rodgers, San Luis Obispo Council of Government, Graham Updegrove, California Association of Realtors, Charlene Rosales, Chamber of Commerce and San Luis Obispo residents Martha Miller, Michelle Tasseff, Donald Hedrick, Kyle Wiens, Dave Garth and Steve Delmartini spoke in favor of the proposed project. The following San Luis Obispo residents expressed concerns about the proposed project: Edward Benson, Cheryl McLean, Dixie Cliff, Allan Cooper, Elizabeth Thyne, David Brodie, Sandra Lakeman, Dave Hannings, Mila Vujovich-La Barre, John Grady, Janet Kourakis, and Bob Lucas. 8.a Packet Pg. 193 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of February 16, 2016 Page 7 By consensus, the City Council received and filed a presentation regarding the proposed project located at 1101 Monterey and 1144 and 1166 Higuera Streets and provided input and guidance to questions posed by the applicant. BUSINESS ITEM 13. 2015-16 MID-YEAR BUDGET REVIEW (LICHTIG / JOHNSON / STANWYCK / BRADFORD – 45 MINUTES) Assistant City Manager/ Interim Finance & IT Director Johnson, Parks & Recreation Director Stanwyck, and Budget Manager Bradford presented a PowerPoint presentation entitled “2015-16 Mid-Year Budget Review” summarizing the staff report, and responded to Council inquiries. Public Comment: Donald Hedrick, San Luis Obispo, urged the City Council to make investments in local infrastructures. MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER ASHBAUGH, CARRIED 5-0 to: 1. Receive and discuss an update of changes in the financial position based on revised projections for all funds for the 2015-16 Fiscal Year, and the General Fund Five-Year Forecast for 2015-2016. 2. Receive an update on Status of Major City Goals and Other Important Objectives. 3. Adopt Resolution No. 10694 (2016 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving changes to the 2015-16 Budget,” as presented in the accompanying Mid-Year Budget Review document LIAISON REPORTS Council Member Ashbaugh reported on a conference and other City activities. COUNCIL COMMUNICATIONS Mayor Marx reported that the City received a letter from Lynn Compton, Chair of the Board of Supervisors, concerning “Homeless Shelter Crisis.” There was no consensus to place this matter on the agenda due to the City’s ongoing support and long standing financial contribution to Homeless Services. ADJOURNMENT The next Regular City Council Meeting is scheduled for Tuesday, March 1, 2016 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. 8.a Packet Pg. 194 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of February 16, 2016 Page 8 __________________________ Lee Price, MMC Interim City Clerk APPROVED BY COUNCIL: XX/XX/2016 8.a Packet Pg. 195 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo Page 1 Tuesday, March 1, 2016 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, March 1, 2016 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. ROLL CALL Council Members Present: Council Members John Ashbaugh*, Carlyn Christianson, Dan Rivoire, Vice Mayor Dan Carpenter*, and Mayor Jan Marx. *Council Member Ashbaugh arrived to the dais at 6:40 P.M. and Vice Mayor Carpenter arrived at the dais at 6:42 P.M. Council Members Absent: None City Staff Present: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; Derek Johnson, Assistant City Manager; and John Paul Maier, Assistant 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 Rivoire led the Pledge of Allegiance. PRESENTATION 1. PRESENTATION BY JOHN SHOALS, REPRESENTING PACIFIC GAS AND ELECTRIC COMPANY, REGARDING THE CENTRAL CALIFORNIA POWER CONNECT PROJECT Pacific Gas and Electric Company Representatives John Shoals and Jenny Everett provided a presentation regarding the Central California Power Connect Project and responded to City Council inquiries. 8.a Packet Pg. 196 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of March 1, 2016 Page 2 2. PRESENTATION BY FIRE CHIEF OLSON AND PUBLIC WORKS DIRECTOR GRIGSBY, REGARDING WINTER STORM PREPAREDNESS Fire Chief Olson and Public Works Director Grigsby provided a presentation on Winter Storm Preparedness. PUBLIC COMMENT PERIOD Sandy Simon, Citizens’ Climate Lobby, urged the City Council to agendize the passing of a resolution urging Congress to Levy a Revenue-Neutral Fee on Carbon in Fossil Fuels. Christopher Lopez, Cal Poly Associated Students Incorporated (ASI), conveyed appreciation to the City Council for their continuing efforts to meet and communicate on a monthly basis with ASI student representatives. Allan Cooper, Save our Downtown, voiced concerns about the increasing building heights in the Downtown and urged the City Council place an advisory measure on a future ballot asking voters whether or not they favor buildings in the Downtown to exceed 45-50 feet in height. Dia Hurd, San Luis Obispo, commented about her attendance at a recent Downtown Concept Plan meeting and voiced concerns about hiring consultants to facilitate such public meetings. Carolyn Smith, San Luis Obispo, spoke about the quality of life living in San Luis Obispo; voiced concerns regarding the City’s rapid growth and development throughout the City. San Luis Obispo residents Jerry Lulejian, Janice Wang and Brett Strickland, urged the Council to reconsider the Rental Housing Inspection Program. San Luis Obispo residents Bob Shanbrom and Mila Vujovich La-Barre urged the City Council to agendize a building moratorium and suggested that City staff make reasonable weather projections so residents can plan accordingly. Jeff Brubaker, San Luis Obispo, expressed gratitude to the City Council and City staff for continued efforts to enhance safe bike routes on Chorro Street. James Shultzie, San Luis Obispo, mentioned a recent tragic accident on the railroad near Cal Poly, which resulted in the death of a student, and urged City staff to work with Union Pacific Railroad to reevaluate the safety of railroad crossings. Bob Lucas, San Luis Obispo, urged the City Council to agendize an item at a future City Council meeting relating to the climate change. Richard Schmidt, San Luis Obispo, urged the City Council to agendize an item at a future City Council meeting relating to a revolving door ordinance. Camille Small, San Luis Obispo, commented favorably about improved bicycle paths in the City and encouraged the City Council to recommend to Cal Poly that it increase student housing. In response to public comments: Public Works Director Grigsby noted that the City plans to add 8.a Packet Pg. 197 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of March 1, 2016 Page 3 a cantilever warning sign as well as a pedestrian barrier near the railroad crossing area in the area near Cal Poly. Utilities Director Mattingly addressed concerns about water resources by providing an overview of the City’s wet water model and how staff calculates remaining water in the reservoirs. City Attorney Dietrick provided legal clarification about the City’s Rental Housing Inspection Program Ordinance. RECESS Council recessed at 7:55 p.m. and reconvened at 8:05 p.m., with all Council Members present. CONSENT AGENDA Public Comments: BK Richard, Chairmen of the Octagon Barn Committee, expressed graduated to the City Council for their continued support of the Octagon Barn project and indicated that he looks forward to working with the City on this project. Scott Smith, Executive Director of the Housing Authority of San Luis Obispo (HASLO); stated that this project has been a work in progress for six years and emphasized that the units are designated for low income families. ACTION: MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to approve Consent Calendar Items 3 thru 10. 3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES ACTION: Waived. 4. MINUTES OF THE CITY COUNCIL MEETINGS OF DECEMBER 15, 2015 AND JANUARY 14, 2016 ACTION: Approved. 5. HISTORIC SIGNIFICANCE DETERMINATION FOR A CONTRIBUTING LIST PROPERTY AT 1009 MONTEREY STREET ACTION: Adopted Resolution No. 10695 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving removal of 1009 Monterey Street from the City’s list of contributing historic resources HIST-2592-2016.” 6. GRANT FUNDING FOR THE OCTAGON BARN CENTER ACTION: Approved grant funding of $206,000 for construction of facilities at the Octagon Barn Center and adopted a Resolution No. 10696 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a grant agreement with the Land Conservancy of San Luis Obispo County;” authorizing the Mayor to execute the Grant Agreement with The Land Conservancy of San Luis Obispo County. 8.a Packet Pg. 198 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of March 1, 2016 Page 4 7. WASTE WATER COLLECTIONS TV VAN REPLACEMENT EQUIPMENT & VEHICLE BUILD-OUT, SPECIFICATION NO. 91416 ACTIONS: 1. Authorized the Finance Director to execute a purchase order to HAAKER Equipment Company in the amount of $135,284 for the purchase of one Envirosight RovverX system, and Transit CCTV for use in a Waste Water Collections vehicle “build-out”; and 2. Authorized the surplus designation of Fleet Asset No. 0509, by sale, auction, trade-in or other method in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Section 405-L and 480. 8. AMENDMENT TO CONSTRUCTION MANAGEMENT SERVICES AGREEMENT WITH MNS ENGINEERS FOR LOS OSOS VALLEY ROAD AT US 101 INTERCHANGE IMPROVEMENT PROJECT, SPECIFICATION NO. 99821 ACTION: Authorized the City Manager to execute Amendment No. 2 to the Construction Management Services Agreement with MNS Engineers, dated July 1, 2014, increasing their contract by $297,354, bringing the total contract allowable monthly cumulative payments from $2,352,870 to $2,650,224 for the remainder of the contract. 9. APPROVAL OF THE FINAL MAP FOR TRACT 2977 UNIT 4, 851 HUMBERT AVENUE (TR 27-06) ACTIONS: Adopted a Resolution No. 10697 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Final Map for Tract 2977 Unit 4 (851 Humbert Avenue, TR 27-06),” and authorized the Mayor to execute a Subdivision Agreement. 10. COUNCIL HEARING ROOM AUDIO VISUAL UPGRADE ACTIONS: 1. Appropriated $48,700 from the Public, Education, and Government Access fund to upgrade the audio visual system in the Council Hearing room; and 2. Authorized the Finance & IT Director to approve a Purchase Order with Jensen Audio Visual in the amount of $48,700 from account for the purchase and installation of the upgraded AV system. 8.a Packet Pg. 199 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of March 1, 2016 Page 5 PUBLIC HEARINGS 11. CONSIDERATION OF 2016 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING RECOMMENDATIONS Community Development Director Codron and Planning Technician Wiseman provided a PowerPoint presentation, entitled “2016 Community Development Block Grant (CDBG) Funding Recommendations,” reviewed the contents of the report and responded to City Council inquiries. Mayor Marx opened the public hearing. Grace Macintosh, Deputy Director, Community Action Partnerships San Luis Obispo (CAPSLO), Chris Johnson and Biz Steinberg on behalf of the Board of Directors of CAPSLO, and Scott Smith, HASLO Director, spoke in favor of the funding recommendations. Mayor Marx closed the public hearing. ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR CARPENTER, CARRIED 5-0 to adopt a Resolution No. 10698 (2016 Series) entitled “A Resolution of the City Council of the City of the City of San Luis Obispo, California, approving the 2016 Community Development Block Grant (CDBG) Program;” to approve funding allocations for $454,910 of CDBG funds for the 2016 Program Year. STUDY SESSION 12. FIRE MASTER PLAN STATUS UPDATE AND DISCUSSION REGARDING COST ALLOCATION METHODOLOGY Fire Chief Olson and Community Development Director Codron reviewed the contents of the report and responded to City Council inquiries. Public Comment: Alex Carlyn, San Luis Obispo, urged the City Council to incorporate the number of expected service calls to the formula for the cost allocation methodology. By consensus, the City Council provided input to staff regarding cost allocation methodology for sustaining service levels to developing areas of the City, including conceptual approval for the proposed hybrid cost allocation methodology. LIAISON REPORTS Mayor Marx, Council Member’s Ashbaugh and Christianson provided oral reports on their attendance at conferences and other City activities. 8.a Packet Pg. 200 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of March 1, 2016 Page 6 COUNCIL COMMUNICATIONS By consensus, the City Council directed staff to agendize: 1) consideration of a resolution urging Congress to Levy a Revenue-Neutral Fee on Carbon in Fossil Fuels and 2) consideration to join the 2016 America in Bloom National Awards Program. ADJOURNMENT The next Special City Council Meeting is scheduled for Thursday, March 3, 2016 at 3:30 p.m. and the next Regular City Council Meeting is scheduled for Tuesday, March 15, 2016 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. __________________________ Lee Price, MMC Interim City Clerk APPROVED BY COUNCIL: XX/XX/2016 8.a Packet Pg. 201 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) Thursday, March 3, 2016 Special Meeting of the City Council CALL TO ORDER A Special Meeting of the San Luis Obispo City Council was called to order on March 3, 2016 at 3:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Mayor Marx. ROLL CALL Council Members Present: Council Members John Ashbaugh, Carlyn Christianson, Dan Rivoire, Vice Mayor Dan Carpenter, and Mayor Jan Marx Council Members Absent: None Staff Present: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; John Paul Maier Assistant City Clerk; Derek Johnson, Assistant City Manager; Monica Irons, Director of Human Resources; Greg Zocher, Human Resources Manager; and Rick Bolanos of Liebert Cassidy Whitmore, were present at Roll Call. PUBLIC COMMENT ON CLOSED SESSION City Attorney Dietrick called for public comment. There was no one present to speak on Closed Session Items. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 Agency Negotiators: Monica Irons, Katie Lichtig, Derek Johnson, Greg Zocher, J. Christine Dietrick, Jon Ansolabehere, Rick Bolanos Represented Employee Organizations: San Luis Obispo City Employee’s Association (SLOCEA) San Luis Obispo Police Officer’s Association (POA) San Luis Obispo Police Staff Officer’s Association (SLOPSOA) International Association of Firefighters Local 3523 8.a Packet Pg. 202 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) San Luis Obispo City Council Minutes of March 3, 2016 Page 2 Unrepresented Employees: Unrepresented Management Employees Unrepresented Confidential Employees B. CONFERENCE WITH LEGAL COUNSEL –EXISTING LITIGATION Paragraph (1) of subdivision (d) of Government Code § 54956.9; Name of case: San Luis Obispo Police Officers Association v. City of San Luis Obispo; State of California Public Employment Relations Board Case No. LA-CE-729-M REPORT ON CLOSED SESSION City Attorney Dietrick reported that no reportable action was taken during the Closed Session. ADJOURNMENT Mayor Marx adjourned the City Council Meeting at 4:15 p.m. The next regular City Council Meeting is scheduled for Tuesday, March 15, 2016 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. __________________________ John Paul Maier, CMC Assistant City Clerk APPROVED BY COUNCIL: XX/XX/2016 8.a Packet Pg. 203 Attachment: a - Feb 16 and March 1 and March 3, 2016 Minutes (1324 : Minutes of February 16, March 1 & 3, 2016) Meeting Date: 4/19/2016 FROM: Daryl R. Grigsby, Director of Public Works Prepared By: Timothy S. Bochum, Deputy Director of Public Works Isaac Shuck, Fleet Maintenance Supervisor SUBJECT: PARKS MAINTENANCE DUMP TRUCK REPLACEMENT, SPECIFICATION NO. 91408 RECOMMENDATION 1. Authorize the Finance Director to purchase a dump trailer and aerator tractor attachment with funding originally approved to purchase a dump truck for use by the Parks Maintenance program. 2. Authorize the solicitation of bids for an aerator tractor attachment and execute an agreement if the lowest responsible bid is within the Fleet Manager’s maximum cost estimate of $35,000.00. 3. Authorize the surplus designation of Fleet Asset No. 9104 Dump Truck and 0131-A4 aerator tractor attachment, by sale, auction, trade-in or other method in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Section 405-L and 480. DISCUSSION Background The replacement of a 1991 GMC dump truck, asset number 9104, used by Parks Maintenance, was approved as part of the 2015-17 Financial Capital Improvement Plan (CIP). In September of 2014, the Fleet Maintenance Supervisor determined that the truck no longer met California Air Resource Board (CARB) regulations for operation. The truck was taken out of service, proposed for replacement, and funding was approved for replacement in FY 2015-16. Recommendation Instead of purchasing the intended replacement dump truck designated in the CIP, staff is proposing to purchase a much less expensive dump trailer and use some of the savings to replace an aerator tractor attachment. Although a replacement full size dump truck would fulfill Parks Maintenance needs, further evaluation by the Fleet and Parks maintenance supervisors determined that a full size dump truck was “oversized” for daily needs and additional options were looked into. A dump trailer was concluded as the better solution for the following reasons: 9 Packet Pg. 204 1. A full size dump truck is very heavy and easily damages manicured grass and landscaping within the City parks maintained. A dump trailer is significantly lighter, and would have less impact on landscaping. 2. The material that the program needs to remove is not heavy and does not require the capacity of a full size dump truck. The capacity of a dump trailer still exceeds what the program needs to remove, yet has the capacity to carry larger items if needed. 3. A dump trailer is versatile in that it can be towed by most all light and medium duty City trucks, and so could be used more readily by other activities as a shared vehicle. 4. A dump trailer can be towed by trucks that use less fuel versus a full size dump truck. 5. A dump trailer requires significantly less maintenance versus a full size dump truck. 6. The purchase of a dump trailer will be approximately $97,000 less than what was budgeted for a replacement dump truck. In determining that a dump trailer would better suit Parks Maintenance operations and results in significant financial savings, the Parks Maintenance Supervisor identified that a tractor aerator attachment needs to be upgraded and replaced. The aerator tractor attachment is used for turf aerification in the City parks. Aerification is the most important element related to turf health. It breaks up compacted soils to allow air and water into the depths of the soil and improves root depth. Improving root depth is important to create a more durable turf which allows sustainability through all seasons. The current aerator attachment has been serving the twelve City parks under the Parks Maintenance Program. Each park takes a minimum of a week to recondition each year. One of the City parks, Damon Garcia, requires reconditioning every 6-8 weeks due to compaction from increased play. Although, the current aerator has fulfilled the need, it is being used beyond its intended capability. That has resulted in extreme wear and breakage. After further evaluation by the Fleet Supervisor, it was determined that the current unit needs full refurbishment to remain in service. This would not be cost effective because the current unit does not provide the desired end result, and repairs beyond normal maintenance would still occur often. Replacing the current aerator with a larger unit with improved technology, will allow the Parks Maintenance program to breakup compaction at greater depths, and increase the soil fracturing capability to improve turf health and sustainability. This will also reduce breakdowns and repair costs. Even with replacement of the aerator at this time, the conversion of used equipment from a dump truck to trailer allows for both apparatus to be replaced and still have a modest savings in the Fleet Replacement Fund that can be used to help replace other equipment. 9 Packet Pg. 205 Open Market Purchase & Formal Bid The dump trailer purchase will not exceed $10,000 to purchase. Per City purchasing guidelines staff has solicited for at least three bids for an Open Market purchase. The aerator tractor attachment will exceed $25,000. Staff could not find a formal bid under the State of California or other cooperative purchasing contracts to “piggy back” off of. A formal bid package has been prepared for the purchase of an aerator that meets City specifications. CONCURRENCES Parks Maintenance management concurs with the replacement vehicle and equipment recommendation made in this report. FISCAL IMPACT Approved funding for the CIP project is within budget. Project Costs (91408) Dump Trailer Base Cost $6,977.06 Doc Fee $55.00 Sales Tax (8.00%)$562.56 Tire Fee $7.00 Registration Fee $40.00 Freight and Assembly $200.00 Total Dump Trailer Cost $7,841.62 Total Estimated Aerifier Tractor Attachment Cost $35,000.00 Available Project Budget $105,000.00 Estimated Project Balance $62,158.38 ALTERNATIVES Purchase a dump truck as originally approved. The Council could determine that the regular dump truck is the preferred purchase. A dump truck would be well used; however, the less costly equipment recommended and the ability to replace an important Park Maintenance aerator appears to outweigh staying with the traditional vehicle. Deny or defer purchase. The City Council could choose to deny or defer the recommended purchases proposed. Staff does not recommend this option as replacement of the dump truck was approved as part of the 2015-2017 Financial Plan. Denying or deferring purchase will continue to hinder Parks Maintenance staff productivity and efficiency due to the lack of appropriate equipment and will result in increased maintenance and repair costs. 9 Packet Pg. 206 Attachment 1 The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities. Telecommunications Device for the Deaf (805) 781-7410. 990 Palm Street  San Luis Obispo, CA 93401 Notice Inviting Bids for Aerator Tractor Attachment Specification Number 91408 The City of San Luis Obispo is inviting sealed bids for one aerator tractor attachment. All bids must be received by the Finance Division by 3:00 pm, XXXX, XXXX, 2016 when they will be opened publicly in the Public Works Department Conference Room, 919 Palm Street, San Luis Obispo, CA 93401. Bids received after said time will not be considered. To guard against premature opening, each bid shall be submitted to the Finance Division in a sealed envelope plainly marked with the bid title, specification 91408, bidder name, and time and date of the bid opening. Bids shall be submitted using the forms provided in the specification package. Specification packages and additional information may be obtained by contacting Isaac Shuck at (805) 781-7046. 9.a Packet Pg. 207 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 Specification No. 91347 TABLE OF CONTENTS A. Description of Work 1 B. General Terms and Conditions 3 Bid Requirements Contract Award and Execution Contract Performance C. Special Terms and Conditions 6 Contract Term Bid Content Accuracy of Specifications F. Bid Submittal Forms 8 Bid Submittal Summary Statement of Disqualification 9.a Packet Pg. 208 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 Section A DESCRIPTION OF WORK The City is requesting bids for the purchase of a one (1) 63” Deep Tine Aerator, which shall include the following features: New Deep Tine Aerator 63” Width PTO Driven 3 Speed Gear Box 2,150-2,200 lbs. The Aerator must be delivered within [90] days after bid award. Delivery Address: 25 Prado Road San Luis Obispo, Ca. 93401 Full Specifications listed on the Bid Submittal Form 9.a Packet Pg. 209 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 Section B GENERAL TERMS AND CONDITIONS BID REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a bid (bidder) shall meet all of the terms, and conditions of the Invitation for Bids (IFB) specifications package. By virtue of its bid submittal, the bidder acknowledges agreement with and acceptance of all provisions of the IFB/RFP specifications. 2. Bid Submittal. Each bid must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Bid documents shall be enclosed in an envelope that shall be sealed and addressed to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. In order to guard against premature opening, the bid should be clearly labeled with the bid title, specification number, name of bidder, and date and time of bid opening. No FAX or E-mail submittals will be accepted. 3. Bid Quotes and Unit Price Extensions. The extensions of unit prices for the quantities indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces provided on the Bid Submittal Form(s). Any lump sum bid shall be stated in figures. The Bid Submittal Form(s) must be totally completed. If the unit price and the total amount stated by any bidder for any item are not in agreement, the unit price alone will be considered as representing the bidder's intention and the bid total will be corrected to conform to the specified unit price. 4. Bid Withdrawal and Opening. A bidder may withdraw its bid, without prejudice prior to the time specified for the bid opening, by submitting a written request to the Director of Finance for its withdrawal, in which event the bid will be returned to the bidder unopened. No bid received after the time specified or at any place other than that stated in the "Notice Inviting Bids/Requesting Bids" will be considered. All bids will be opened and declared publicly. Bidders or their representatives are invited to be present at the opening of the bids. 5. Submittal of One Bid Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one bid, except an alternative bid when specifically requested; however, an individual or business entity that has submitted a sub -bid to a bidder submitting a bid, or who has quoted prices on materials to such bidder, is not thereby disqualified from submitting a sub-bid or from quoting prices to other bidders submitting bids. 6. Cooperative Purchasing. During the term of the contract, the successful bidder will extend al l terms and conditions to any other local governmental agencies upon their request. These agencies will issue their own purchase orders, will directly receive goods or services at their place of business and will be directly billed by the successful bidder. 7. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged, but will be permitted. However, any such oral communication shall not be binding on the City. 9.a Packet Pg. 210 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 CONTRACT AWARD AND EXECUTION 8. Bid Retention and Award. The City reserves the right to retain all bids for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any bid, to reject any or all bids, to reject or delete one part of a bid and accept the other, except to the extent that bids are qualified by specific limitations. See the "special terms and conditions" in Section C of these specifications for bid evaluation and contract award criteria. 9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of bidders. Bidders will provide, in a timely manner, all information that the City deems necessary to make such a decision. CONTRACT PERFORMANCE 10. Ability to Perform. The Bidder warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and li censes necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 11. Laws to be Observed. The Bidder shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 12. Payment of Taxes. The contract prices shall include full compensation fo r all taxes that the Bidder is required to pay. 13. Permits and Licenses. The Bidder shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 14. Safety Provisions. The Bidder shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 15. Public and Employee Safety. Whenever the Bidder's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cos t to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 16. Preservation of City Property. The Bidder shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Bidder's operations, it shall be replaced or restored at the Bidder's expense. The facilities shall be replaced or restored to a condition as good as when the Bidder began work. 17. Bidder Non-Discrimination. In the performance of this work, the Bidder agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in 9.a Packet Pg. 211 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 18. Work Delays. Should the Bidder be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Bidder. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 19. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment or services provided by the Bidder (Net 30). 20. Inspection. The Bidder shall furnish City with every reasonable opportunity for City to ascertain that the services of the Bidder are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Bidder of any of its obligations to fulfill its contract requirements. 21. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Bidder in preparing its invoices to City as a condition precedent to any payment to Bidder. 22. Interests of Bidder. The Bidder covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Bidder further covenants that, in the performance of this work, no subcontractor or person having such an interest sha ll be employed. The Bidder certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Bidder shall at all times be deemed an independent bidder and not an agent or employee of the City. 23. Hold Harmless and Indemnification. The Bidder agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Bidder's employees, agents or officers that arise from or are connected with or are caused or claimed to be caused by the acts or om issions of the Bidder, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Bidder's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 24. Contract Assignment. The Bidder shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 9.a Packet Pg. 212 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 25. Termination. If, during the term of the contract, the City determines that the Bidder is n ot faithfully abiding by any term or condition contained herein, the City may notify the Bidder in writing of such defect or failure to perform. This notice must give the Bidder a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Bidder has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Bidder to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Bidder's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Bidder shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it rec eived the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Bidder as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Bidder shall be based solely on the City's assessment of the value of the work-in- progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Bidder be entitled to receive in excess of the compensation quoted in its bid. 9.a Packet Pg. 213 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 Section C SPECIAL TERMS AND CONDITIONS 1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms and Conditions) of these specifications, the contract will be awarded to the lowest responsible, responsive bidder via Purchase Order. 2. Labor Actions. In the event that the successful bidder is experiencing a labor action at the time of contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right to declare said bidder is no longer the lowest responsible, responsive bidder and to accept the next acceptable low bid from a bidder that is not experiencing a labor action, and to declare it to be the lowest responsible, responsive bidder. 3. Failure to Accept Contract. The following will occur if the bidder to whom the award is made (Bidder) fails to enter into the contract: the award will be annulled; any bi d security will be forfeited in accordance with the special terms and conditions if a bidder's bond or security is required; and an award may be made to the next lowest responsible, responsive bidder who shall fulfill every stipulation as if it were the party to whom the first award was made. 4. Statement of Contract Disqualifications. Each bidder shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the IFB package. 5. State Cooperative Purchasing Program. The City of San Luis Obispo participates in the State Cooperative Purchasing Program. As such, the City can purchase the items described in Section A through this program. Accordingly, the City will purchase from the State or the lowes t responsible, responsive bidder, after allowing adjustments for the cost of pickup and/or delivery from the State, adjustments for after-market modifications, and adjustments for sales tax from local dealers, as it determines to be in its best interest. 6. Alternative Bids. The proposer may submit an alternative bid (or bids) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternatives, and discuss under what circumstances the City would prefer one alternative to the other(s). If an alternative bid is submitted, the maximum length of the bid may be expanded proportionately by the number of alternatives submitted. 7. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its bid, the bidder and all subcontractors named in its bid shall bear sole responsibility for bid preparation errors resulting from any misstatements or omissions in the plans and specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguitie s or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to bid submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming reasonable skill, ability and 9.a Packet Pg. 214 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to bid submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the bid. To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful bidder to achieve the project’s objective or standard beyond the amounts provided there for in the bid. In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Bidder shall immediately notify the City in writing, and the Bidder and all subcontra ctors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of bidder's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute. 8. Equipment. The vehicles shall be supplied with all new equipment and accessories indicated as standard equipment in the manufacturer's published literature. All equipment/options are to be factory installed. If some equipment/options are not available from the factory, dealer installation may be acceptable if specified as dealer installed in the bid response and accepted by the City. 9. Deviations. The specifications describe minimum or average requirements. Minor deviations from specifications may be acceptable provided that the operating capacities or characteristics of the vehicles are not adversely affected. Such deviations are to be submitted in writing with the bid submission and the City reserves the right to make the final determination as to whether or not any deviations are acceptable. 10. Regulations. All equipment and accessories shall meet OSHA, Department of Industrial Safety and California Highway Patrol regulations. 11. Shipping Terms. All prices quoted are to be FOB Destination, no additional Freight charges. Bids quoting otherwise may be rejected. 12. Weight Certificates. If required by DMV to register the vehicle, weight certificates must be submitted by the bidder upon final delivery of the vehicle. 13. Licensing and Registration. The City may elect to register vehicles supplies under this bid. In this case, the seller shall provide ownership documents, free and clear. In the event that the City elects to have the seller provide vehicle registration ser vice, the seller will provide this service with no additional fees. In this case, the City will provide an exact registration address on the Purchase Order. 14. Warranty. Standard manufacturer's warranties are to be provided and listed for each vehicle. The City's established preventive maintenance procedures and practices shall be accepted in lieu of the manufacturer/dealer's prescribed procedures. This provision shall also apply to any extended warranties. 9.a Packet Pg. 215 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 Special body and equipment warranties shall be a minimum of one year from date of acceptance and include all parts and labor. All of the above mentioned warranty literature shall be included with the vehicle at the time of delivery. Warranty offers are important and may be considered in the evaluation of the bids. 15. Manufacturer’s Literature. One copy of the vehicle owners/operators manual, any other instructions for operation and any other supporting literature is required for each vehicle. One copy of equipment operating instructions, a complete and current parts list and all other supporting literature is required for all equipment added to a vehicle. All of the above mentioned manufacturers’ literature shall be included with the vehicle at the time of delivery. 16. Delivery. All units are to be delivered F.O.B. Destination to the City Corporation Yard, c/o Fleet Services, 25 Prado Road, San Luis Obispo, CA 93401. Final acceptance of vehicles for conformance with the specifications will be made only by the Fleet Manager. Final acceptance will be made within 20 days of receipt of the vehicles. 17. Keys. Three sets of keys shall be furnished with each vehicle. A warranty and Owner’s instruction manual shall be furnished with each model group. BID SUBMITTAL FORM Specifications Check Mark or note Deviation Working Width 63” Working Depth Variable to 16” Weight 2,150-2,250 lbs. Hole Spacing (side to side) 21/2”-5”, depending on tine size Hole Spacing (forward) @ 540 rpm 5” spacing @ .95 mph 21/2” spacing @ .47 mph PTO Variable to 540 rpm Tractor Required 35 hp. To 80 hp. PTO Speed Up to 540 rpm Productivity Forward Hole Spacing 21/2” – 12,917 sq.ft/hr Forward Hole Spacing 5” – 25,833 sq.ft/hr Tines Comprehensive range of coring/solid tines 3/8” to 1” coring; 3/16” to ¾” solid Drive PTO 3 Speed Gear Box Power Pack Central Power Pack protects the linkage. Vibra Stop Absorbs vibrations from extreme 9.a Packet Pg. 216 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 compaction or stones. Central Depth Adjustment One central lever to adjust depth. Tine Angle Adjustment One central lever to adjust angle of entry. Rollers Front and rear rollers with scrapers. Safety Guards Integrated in machine Spare Tines (Include 4 sets) ¾” x 8” Core, Carbide Tip Warranty 24 Months The undersigned declares that she or he has carefully examined the specifications, which is hereby made a part of this bid; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: Description Quantity Unit Price Total Aerator Tractor Attachment 1 TOTAL BASE PRICE Spare Tines x 4 sets (See specifications) Sales tax @ 8.0% All Other Fees (provide detail below) TOTAL $ Delivery of equipment to the City to be within 90 calendar days after bid award and written authorization to proceed. Firm Name and Address Contact Phone Signature of Authorized Representative Date 9.a Packet Pg. 217 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) Attachment 1 STATEMENT OF PAST CONTRACT DISQUALIFICATIONS The bidder shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or f or any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances.  Do you have any disqualification as described in the above paragraph to declare? Yes  No   If yes, explain the circumstances. Executed on at _______________________________________ under penalty of perjury of the laws of the State of California, that the f oregoing is true and correct. ______________________________________ Signature of Authorized Bidder Representative 9.a Packet Pg. 218 Attachment: a - IFB Parks Maintenance Aerator Tractor 91408 (1296 : Parks Maintenance Dump Truck Replacement) 9.b Packet Pg. 219 Attachment: b - Big Tex 10LX-12 Dump Trailer Specs & Pic (1296 : Parks Maintenance Dump Truck Replacement) 9.b Packet Pg. 220 Attachment: b - Big Tex 10LX-12 Dump Trailer Specs & Pic (1296 : Parks Maintenance Dump Truck Replacement) Page intentionally left blank. Meeting Date: 4/19/2016 FROM: Garret Olson, Fire Chief Daryl Grigsby, Public Works Director Prepared By: Jeremy Schmidt, Fire Mechanic Julie Cox, Administrative Analyst Ryan Betz, Administrative Analyst Isaac Shuck, Fleet Supervisor Tim Bochum, Public Works Deputy Director SUBJECT: FLEET REPLACEMENT ACCELERATION RECOMMENDATION 1. Approve acceleration of three vehicle replacements from FY 2016-17 to FY 2015-16 due to the extended period of time between order and receipt; and 2. Approve the lease purchase of one 2016 Pierce Arrow XT PUC 75’ Quint Aerial Fire Apparatus in the amount of $894,650; and 3. Approve the lease purchase of one 2016 International/Tymco Street Sweeper Truck in the amount of $246,817.60; and 4. Authorize the City Manager, Finance Director and City Attorney to execute all related documents on behalf of the city to execute a five year agreement with PNC Equipment Finance to accomplish these two lease purchases (Attachment G); and 5. Authorize the Finance Director to execute the purchase orders in the amounts noted and associated with the fleet replacements described in Attachment A; and 6. Approve revenue appropriation of $36,096 from the Fleet Sale of Surplus Property fund and expenditures of $36,096 for Command Vehicle CIP ($16,247) and Ambulance/Squad CIP ($19,849) for new equipment requirements for Ambulance/Squad and Command Vehicle; and 7. Authorize the surplus designation of Fleet Asset No. 9403, a 1991 Pierce 75’ Quint, Fleet asset 0021, a 2000 Chevrolet Tahoe, and Fleet Asset No. 0317, a 1998 Ford E350 Ambulance, Fleet Asset No. 0206 2001 Freightliner/Tymco Sweeper Truck by sale, auction, trade-in or other method in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Section 405-L and 480. 10 Packet Pg. 221 REPORT-IN-BRIEF Three specialized vehicles are rapidly approaching end of useful life. As a result of the extended time required to procure such specialized vehicles, staff recommend the accelerated replacement of the following: Fire Aerial Quintuple (“Quint”) Apparatus, Fire Command Vehicle and Public Works Street Sweeper. A Quint combination pumper-aerial serves a dual purpose, both as a fire pumper and an aerial apparatus. By definition, this includes an aerial ladder greater than 50 feet, minimum water tank of 300 gallons, fire pump capable of 750 gallons per minute, and ability to incorporate specific inventories of ancillary equipment including hose and ground ladders. These three vehicles were each approved for replacement FY 2016-17. Additionally, the Fire Squad/Ambulance was approved for replacement in FY 2015-16. New ambulance crash standards, however, require a more expensive gurney system and an increased cost of $19,849. The Fire Command vehicle requires a more expensive radio system because the old system is no longer available. The new system increases by cost by $16,247. Staff is proposing the use of Fleet Sale of Surplus Property revenue from FY 2015 -16 to pay for the additional costs associated with these vehicle acquisitions. This item was removed from the March 15, 2016 agenda so that staff could analyze financing documents provided by the lender that were delivered that day. This review has occurred and staff is now recommending approval of the item. DISCUSSION Background The build time for these vehicles ranges from approximately six to twelve months due to their complexity. Given this long build time and the condition of the current fleet, staff is requesting this replacement acceleration to ensure continuity of service and decreased maintenance expenses to keep aged apparatus in service. Emergency vehicles are a vital part of the service delivery for the San Luis Obispo City Fire Department. The Fire Department responds to over 5,000 emergency service calls annually. A Fire Apparatus Quint, Squad Ambulance and Command Vehicle, were all approved to be replaced as part of the 2015-17 Financial Plan in Fiscal Year 2016-17. Fire and Fleet operations developed a Fire Quint Apparatus, Squad and Command Vehicle specification committee that took into account the unique features of our community and identified the overall best fit for City’s fire vehicles. The new Fire Quint Apparatus will replace a 23 year-old unit and the Squad will replace City an 18 year-old unit. The Command vehicle will replace a 16 year-old unit. The new vehicles will provide a higher level of service while reducing costs and staff time for maintenance. The new Quint will also meet highest emission standards. The replacement of the 2001 Freightliner/Tymco Street Sweeper Truck, used daily by the Streets Maintenance staff, was approved as part of the 2015-17 Financial Plan in Fiscal Year 2016-17, this vehicle is now fourteen years old and is well beyond its useful life replacement target of eight years for sweeper vehicles. This truck is used primarily for critical City streets sweeping maintenance and paving operations cleanup. Additionally, it is used to assist the Police Department with vehicle accident cleanup, cleaning the City Corporation Yard’s wash bay area, 10 Packet Pg. 222 and assisting the Utilities Department in cleanup after water main breaks and/or storm drain cleaning. Similar to the fire apparatus discussed above, the sweeper lead time for vehicle production is six to twelve months. Ordering the vehicle now allows for delivery in the fiscal year that is planned for in the Financial Plan. Fire Apparatus Quint – Sole Source Purchase Recommended Following extensive analysis, Staff is seeking the authorization to purchase a 2016 Pierce 75’ Quint Aerial PUC Pumper. Pierce Fire apparatus has been a dependable platform for emergency response in the City for more than a quarter century. Why a Sole Source Purchase of the Quint is Recommended Staff recommends a sole source purchase award to South Coast Fire Equipment in the amount of $894,650.29 for the purchase of a 2016 Pierce Arrow XT Quint 75 Foot Aerial PUC Fire Pumper. (Attachment B) City purchasing guidelines allow for sole source when supplies or equipment have been uniformly adopted in use by the City or otherwise standardized. The Pierce Fire Quint Aerial Pumper has been the standard aerial apparatus for the City of San Luis Obispo for the last quarter century. While there are other vendors that could provide aerial apparatus, staff is recommending Pierce due to a variety of issues, including; equipment standardization and familiarity by both the fire engineer and the fire mechanic, production time reduction resulting from working experience the City has established with Pierce’s manufacturing staff, and the benefits of utilizing local vehicle vendors like California-based South Coast Fire Equipment. South Coast Fire Equipment is providing the purchasing quote for aerial apparatus at the base price reflective of a nationally utilized cooperative purchasing agreement. Used as a pricing standard throughout the fire service, this master contract is commonly known as the HGAC, or Houston Galveston Area Council cooperative purchasing agreement. While the City is not purchasing through the HGAC, the City’s price for this apparatus is the same of this cooperative purchasing agreement. The Fire Department has a significant equipment and training investment with maintaining Pierce manufactured apparatus. Fire Fleet already has an inventory of spare parts, filters and maintenance items specific to the Pierce fire aerial apparatus platform. This inventory would be costly to retrofit to accommodate another make of engine. Additionally, the Fire Department Fire Vehicle Mechanic is specially trained and equipped to provide maintenance to Pierce manufactured fire apparatus. All current front-line heavy duty fire apparatus is manufactured by Pierce. Continuing with Pierce heavy duty apparatus maximizes the training and specialty tools already provided to staff, thus controlling costs. Finally, the cost for the Pierce Aerial Apparatus is comparable to that of other vendors. Squad Rescue Ambulance - Cooperative Purchasing The City’s Financial Management Manual, Section 405-I page 14, recommends fleet purchases using either a State cooperative purchasing contract or “piggyback” agreements with local agencies. All Fleet purchases such as Police patrol vehicles, general purpose fire trucks, sedans station wagons, passenger vans, light to heavy trucks, utility vehicles, and construction 10 Packet Pg. 223 equipment should generally be acquired new through State of California Multiple Award Schedule (CMAS) contracts. Specialized units not generally available through CMA should generally be acquired new through “piggyback” purchases, where other local agencies have conducted competitive procurements and made those contracts available to the City. CMAS contracts that leverage prices by other agencies provide substantial cash discounts for the City when making these procurements as well as expedite the purchasing process. Having the capability to make a purchase through an established purchasing agreement, as opposed to an independent purchase, will provide the City additional savings to be utilized to purchase additional replacement equipment. Staff conducted bids from the National Joint Purchasing Alliance (NJPA), the HGACBuy Cooperative Purchasing Program (HGACBuy Contract No. SW04-14 and local vendors Perry Ford and Alfano Motors per City’s Financial Management Manual Section 405-I, page 14 line 3. This policy states: 3. Contact any local dealers that might have been potential bidders to ensure that the cooperative contract price is a good value and prudent alternative to advertising for bids. a. Use local dealer within the city limits if they can provide the same brand, model and configuration of item(s) identified in cooperative purchase agreement(s) at or below the cooperative purchasing net cost within the same terms and conditions. Per the City’s purchasing policy, staff is seeking Council approval to purchase one Squad Rescue Ambulance for $199,849. Staff has concluded that the 2016 Ford F550 4WD with Leader Industries ambulance package would make the best fit for the Fire Department’s Squad Rescue Ambulance needs (Attachment C). The vehicle will be outfitted through Leader Ambulance, a well-known and well reputed fire equipment builder and repair facility located in Southern California. The price quote benefits from the cost competitive bid process obtained by the City of Downieville Fire Department. The chassis for the vehicle will be purchased through Perry Ford, a local vendor, and transported to Leader for production. Squad Chassis Perry Ford was the lowest bid for the Squad Chassis. Staff recommends approval of using Perry Ford for this purchase. (Attachment E) Command Vehicle Per the City’s purchasing policy, staff is seeking Council approval to purchase one new Fire Battalion Chief (BC) Command vehicle currently budgeted and approved for replacement as part of the 2015-17 Financial Plan in Fiscal Year 2016-17. Staff has concluded after an extensive analysis that the 2016 Chevrolet Suburban 4WD 4-door, 1500 series would make the best fit for the Fire Departments’ command vehicle requirements. Pursuant to City purchasing guidelines, staff explored the use of a multi-year cooperative purchasing agreement with the National Joint Powers Alliance (NJPA), contract #102811 (expires 1/17/17), to purchase one Chevrolet Suburban 4WD 4-door. This resulted in a quote totaling $49,456.04 through its approved Chevrolet dealer, National Auto Fleet Group. Per City purchasing guidelines, staff contacted the 10 Packet Pg. 224 local dealer, Alfano Motors of San Luis Obispo, for comparative pricing and received a quote totaling $46,961.75. Alfano Motors was the lowest bid for the Command Vehicle Chassis. Staff recommends approval of using Alfano Motors for this purchase. (Attachment D) An additional $16,247 is also requested as the radio in the replacement Command Vehicle is no longer available and a new model radio kit ($16,247) for the vehicle is required. Sweeper Truck Pursuant to City purchasing guidelines, staff explored use of a multi -year cooperative purchasing agreement with HGACBuy Contract No. SW04-14, effective through April 30, 2016, to purchase a sweeper truck that met City specifications. This resulted in a quote totaling $246,817.80 through its approved dealer, Tymco Inc. Per City purchasing guidelines, staff searched for a local dealer for comparison pricing and found no local sweeper truck dealers. (Attachment F) FISCAL IMPACT Lease Purchase The City has strategically used lease options as ways to reduce significant variations in the costs of replacing vehicles or other specialty equipment. Due to the high cost of the fire engine and sweeper, staff proposed and Council approved debt financing of these two vehicles in the 2015- 17 Financial Plan to stabilize the annual costs needed to be paid from the Fleet Fund. Staff is seeking the authorization to execute a lease purchase agreement with PNC Equipment Finance (Attachment G), - for the acquisition of the new Fire Apparatus Quint and the Tymco Street Sweeper. These purchases are budgeted and approved for replacement as part of the 2016-17 Financial Plan. In the 2015-17 Financial Plan, pages G7 and G10 provide estimates of the estimated debt financing to acquire these vehicles. The proposed annual lease payments are within the budgeted amounts in the financial plan and the proposed financing was reviewed by PFM, the City’s independent financial advisor. Funding for the replacement apparatus listed in the table below was approved in the 2015-17 Financial Plan. Since the approval of the 2015-17 Financial Plan, new standard equipment requirements have occurred such as gurney and radio kit for the Ambulance Van Package and the Command Vehicle. The ambulance budget expected that the current patient gurney could be reused with the new vehicle. The existing gurney for the Ambulance does not meet the triple K Ambulance Crash Standards and requires purchase of a new gurney $16,169 plus $3,680 for increased cost for required equipment, totaling $19,849. The radio in the replacement Command Vehicle is no longer available and a new model radio kit ($16,247) for the vehicle is required. (Attachment H) The current budgets for these vehicles are not sufficient to cover these additional costs. Staff recommends approval of $36,096 from Fleet Sale of Surplus Property revenue fund to cover the additional costs. 10 Packet Pg. 225 Department Adopted Budget Fiscal Year New Equipment Requirements Total Cost Fire Ambulance Package Van 180,000 15-16 19,849 199,849 Aerial Fleet Apparatus 900,000 16-17 n/a 900,000 Command Vehicle (Emergency Response SUV) 99,400 16-17 16,247 115,647 Public Works HD Truck Sweeper Unit 266,600 16-17 n/a 266,600 Lease Purchase Terms Staff has worked with private lenders and the City’s Financial Advisor to review financing offers from various entities. Staff is recommending that we enter into a lease agreement with PNC Equipment Finance, LLC to provide financing of the vehicles. PNC’s terms were the same or better than other lenders and final annual interest rate for the lease is set at 1.70%. The following table reflects the annual payments for the lease agreement. The Financial Plan Debt Services estimates anticipated up to 4% for the APR for this lease and because the City negotiated a substantially less interest rate, the financial plan covers the proposed debt services costs with savings available to cover other vehicles purchases. PNC Equipment Financial Amount Borrowed: $1,141,468.09 Annual Payments: (1) $240,067.42 (2) $240,067.42 (3) $240,067.42 (4) $240,067.42 (5) $240,067.42 Total Amount Paid: $1,200,337.10 Annual Interest Rate: 1.70% The adopted Financial Plan anticipated that a partial payment for this lease would be necessary in FY 2016-17. The first payment for the lease will be $240,067.42 and due on April 28, 2017 or later if the leased equipment is not delivered to the City. The change to the payment plan in the Debt Service Fund will be updated as part of the 2016-17 Budget Supplement. ALTERNATIVES 10 Packet Pg. 226 Deny Funding Transfer and Purchase. The City Council could choose to deny or defer the Quint 75’ Aerial Fire Apparatus, Command and Squad Rescue and Street Sweeper vehicles. Staff does not recommend this option as the replacements were approved as part of the 2015-17 Financial Plan. The vehicles above have met its useful target life in both years and mileage. Denying or deferring the purchase could result in costly maintenance and repairs due to aging vehicles. 10 Packet Pg. 227 Attachment A Purchase Orders Authorize the Finance and Information Technology Director to execute the purchase orders listed below: 1. a purchase order to South Coast Fire Equipment in the amount of $894,650.29 for the purchase of one new 2016 Pierce Arrow XT PUC 75’ Quint Aerial Fire Apparatus and 2. a purchase order to International/Tymco in the amount of $246,817.80 for the purchase of one new 2016 Sweeper Truck and 3. a purchase order to Alfano Motors in the amount of $46,961.75 for the purchase of one new 2016 Chevrolet Suburban 1500 Command Vehicle Chassis and 4. a purchase order to Perry Ford in the amount of $55,118.88 for the purchase of one new 2016 Ford F550 Ambulance Chassis and 5. a purchase order to Leader Emergency Vehicles in the amount of $144,730.09 for the purchase build of one new Ambulance/Squad and 6. a purchase order to Motorola Solutions in the amount of $16,247.52 for the purchase of a radio kit for the Command Vehicle Chassis 10.a Packet Pg. 228 Attachment: a - List of Purchase Orders (1300 : Fleet Replacement Acceleration) 10.b Packet Pg. 229 Attachment: b - Purchase quote from South Coast Fire Equipment, Quint Fire Apparatus (1300 : Fleet 10.b Packet Pg. 230 Attachment: b - Purchase quote from South Coast Fire Equipment, Quint Fire Apparatus (1300 : Fleet 10941 Weaver Avenue South El Monte, CA 91733 Kevin Oberthier, Factory Direct Sales Mobile: (559) 761-9382 Fax: (559) 276-3235 2-Feb-2016 TERMS SHIP VIA COD Ground QUANTITY EACH EXTENDED AMOUNT 1 $133,998.00 133,998.00$ Sub-Total 133,998.00$ 133,998.00$ 1 Sales Tax 8.00%10,719.84$ 10,719.84$ 7 CA Tire Fee $1.75 (Per Tire)12.25$ 12.25$ 1 DMV Fee's TOTAL QUOTED AMOUNT 144,730.09$ 144,730.09$ Customer Approval:Payment: (Please check one) Leasing Company Check Wire Transfer Quotation is valid for 60 days Stryker power cot, Electric Modular door locks, Features. "E" Start, Unlock Switch, Tinted Windows, Cot Stop. Safety Net, Console, LED Lighting, Zico Bottle Holder.Pre-set Reg, Chassis Will be Provided by SLOFD. FOB South El Monte, CA QUOTATION Signature San Luis Obispo F.D. 2160 Santa Barbara Ave San Luis Obispo , CA. 93401 THANK YOU FOR YOUR BUSINESS Pricing Date Delivery 120-140 Days after receipt of chassis DESCRIPTION Purchaser agrees to defend, indemnify and hold Halcore Group Inc., dba Leader Industries, harmless from any claims, costs (including actual attorney's fees), damages and liabilities caused in whole or impart by any alteration or modification of, or change TERMS: All Vehicle Sales Are C.O.D. Titles to be Processed Upon Receipt of Payment in Full. 2016 Ford F-550 Type-1 4x4 Leader Conversion Inverter / Charger, "H" Tank set-up, Hidden Door Switch, Liquid Spring system, Paint Ford Red, Rear Chevrons, lettering 10.c Packet Pg. 231 Attachment: c - Purchase quote from Leader Industries, Squad Build (1300 : Fleet Replacement Acceleration) 10.d Packet Pg. 232 Attachment: d - Purchase quote from Alfano Motors, Command Vehicle Chassis (1300 : Fleet Replacement Acceleration) 10.d Packet Pg. 233 Attachment: d - Purchase quote from Alfano Motors, Command Vehicle Chassis (1300 : Fleet Replacement Acceleration) 10.d Packet Pg. 234 Attachment: d - Purchase quote from Alfano Motors, Command Vehicle Chassis (1300 : Fleet Replacement Acceleration) 10.d Packet Pg. 235 Attachment: d - Purchase quote from Alfano Motors, Command Vehicle Chassis (1300 : Fleet Replacement Acceleration) 10.d Packet Pg. 236 Attachment: d - Purchase quote from Alfano Motors, Command Vehicle Chassis (1300 : Fleet Replacement Acceleration) 10.d Packet Pg. 237 Attachment: d - Purchase quote from Alfano Motors, Command Vehicle Chassis (1300 : Fleet Replacement Acceleration) 10.d Packet Pg. 238 Attachment: d - Purchase quote from Alfano Motors, Command Vehicle Chassis (1300 : Fleet Replacement Acceleration) 10.d Packet Pg. 239 Attachment: d - Purchase quote from Alfano Motors, Command Vehicle Chassis (1300 : Fleet Replacement Acceleration) 10.e Packet Pg. 240 Attachment: e - Purchase quote Perry Ford, Squad Chassis (1300 : Fleet Replacement Acceleration) 10.f Packet Pg. 241 Attachment: f - Purchase quote TYMCO Street Sweeper (1300 : Fleet Replacement Acceleration) Tax Exempt Lease Purchase **updated** SALES ORGANIZATION: South Coast Fire - Jon Contact information: LESSEE: City San Luis Obispo Monday, March 28, 2016 TYPE OF EQUIPMENT: Pierce 75' Arrow XT Kim Simon EQUIPMENT COST: $894,650.29 including discounts and sales tax plus street sweeper $246,817.60 Locator: B3-B230-05-07 CUSTOMER DOWNPAYMENT: $0.00 155 East Broad St TRADE-IN: $0.00 Columbus, OH 43215 DELIVERY TIME: Std delivery P: (800) 820-9041, ext. 1 PAYMENT MODE: Annual In Arrears M: (614)-670-3994 FIRST PAYMENT DUE DATE: 1 Year After Lease Commencement Fax:(800)-678-0602 LEASE COMMENCEMENT DATE: Upon contract signing with Pierce Kim.simon@pnc.com Term 5 years Number of Payments 5 annual Payment Amount $240,067.42 Interest rate 1.70% NOTE: All lease documents must be fully executed within 14 days of the date of this proposal. Failure to receive completed documents may alter the final payment schedule due to changes in rates and/or discounts. There will be a $250 fee if an escrow option is necessary. PERFORMANCE BOND: To utilize the prepay program, a performance bond is required. Said performance bond shall be paid for directly to Pierce manufacturing or financed by PNC Equipment Finance as part of the transaction TYPE OF FINANCING: Tax-exempt Lease Purchase Agreement with a $1.00 buy out option at end of lease term. Said agreement shall be a net lease arrangement whereby lessee is responsible for all costs of operation, maintenance, insurance, and taxes. BANK QUALIFICATION: This proposal assumes that the lessee will not be issuing more than $10 million in tax-exempt debt this calendar year. Furthermore, it is assumed that the lessee will designate this issue as a qualified tax-exempt obligation per the tax act of 1986. LEGAL TITLE: Legal title to the equipment during the lease term shall vest in the lessee, with PNC Equipment Finance perfecting a first security interest AUTHORIZED SIGNORS: The lessee's governing board shall provide PNC Equipment Finance with its resolution or ordinance authorizing this agreement and shall designate the individual(s) to execute all necessary documents used therein. LEGAL OPINION: The lessee's counsel shall furnish PNC Equipment Finance with an opinion covering this transaction and the documents used herein. This opinion shall be in a form and substance satisfactory to PNC Equipment Finance. VOLUNTEER FIRE DEPARTMENTS: If Lessee is a Volunteer Fire Department, a public hearing under the requirements of Section 147(f) of the Internal Revenue Code of 1986 shall be conducted to authorize this transaction. It is recommended that a notice of the public hearing be published 10 to 14 days in advance of the public hearing. This proposal will be valid for April 28, 2016 from the above date and is subject to final credit approval by PNC Equipment Finance and approval of the lease documents in PNC Equipment Finance's sole discretion. To render a credit decision, lessee shall provide PNC Equipment Finance with their most recent two years' audited financial statements, copy of their most recent interim financial statement, and current budget. Accepted by:____________________________________ Proposal submitted by_____________________ 10.g Packet Pg. 242 Attachment: g - Tax Exempt Lease Purchase(Update) PNC Equipment Finance for fire truck and street Quote Number:QU0000349962 Effective:02 FEB 2016 Effective To:27 MAY 2016 Bill-To:Ultimate Destination: SAN LUIS OBISPO FIRE DEPARTMENT SAN LUIS OBISPO FIRE DEPARTMENT 2160 2160 SANTA BARBARA STREET SANTA BARBARA STREET SAN LUIS OBISPO, CA 93401 SAN LUIS OBISPO, CA 93401 United States United States Attention:Sales Contact: Name:Jeremy Schmidt Name:Tammie Massirer Email:jschmidt@slocity.org Email:Tammie.Massirer@motorolasolutions.com Phone:805-781-7375 Phone:19166260493 Contract Number:LA COUNTY (CA) Freight terms:FOB Destination Payment terms:Net 30 Due Item Quantity Nomenclature Description List price Your price Extended Price 1 3 M25KSS9PW1AN APX6500 VHF MID POWER $2,194.00 $1,645.50 $4,936.50 1a 3 G806BE ADD: ASTRO DIGITAL CAI OPERATION $515.00 $386.25 $1,158.75 1b 3 G442AJ ADD: O5 CONTROL HEAD $432.00 $324.00 $972.00 1c 3 G67BC ADD: REMOTE MOUNT MID POWER $297.00 $222.75 $668.25 1d 3 G398AU ENH: 3 YEAR REPAIR SERVICE ADVANTAGE $182.00 $182.00 $546.00 1e 3 GA00179AB ADD: NO REMOTE CABLE NEEDED --- 1f 6 W22BA ADD: PALM MICROPHONE $72.00 $54.00 $324.00 1g 3 G444AE ADD: APX CONTROL HEAD SOFTWARE --- 1h 3 G89AC ADD: NO RF ANTENNA NEEDED --- 1i 6 G831AD ADD: SPKR 15W WATER RESISTANT $60.00 $45.00 $270.00 1j 3 G48BD ENH: CONVENTIONAL OPERATION APX6500 $500.00 $375.00 $1,125.00 1k 3 GA00092AC ADD: DUAL-CONTRL HD HARDWARE $570.00 $427.50 $1,282.50 2 1 M25SSS9PW1AN APX6500 UHF R2 MID POWER $2,194.00 $1,645.50 $1,645.50 2a 1 G806BE ADD: ASTRO DIGITAL CAI OPERATION $515.00 $386.25 $386.25 2b 1 G442AJ ADD: O5 CONTROL HEAD $432.00 $324.00 $324.00 2c 1 G67BC ADD: REMOTE MOUNT MID POWER $297.00 $222.75 $222.75 2d 1 G398AU ENH: 3 YEAR REPAIR SERVICE ADVANTAGE $182.00 $182.00 $182.00 2e 1 GA00179AB ADD: NO REMOTE CABLE NEEDED --- 2f 2 W22BA ADD: PALM MICROPHONE $72.00 $54.00 $108.00 2g 1 G444AE ADD: APX CONTROL HEAD SOFTWARE --- 2h 1 G89AC ADD: NO RF ANTENNA NEEDED --- 2i 2 G831AD ADD: SPKR 15W WATER RESISTANT $60.00 $45.00 $90.00 2j 1 G48BD ENH: CONVENTIONAL OPERATION APX6500 $500.00 $375.00 $375.00 2k 1 GA00092AC ADD: DUAL-CONTRL HD HARDWARE $570.00 $427.50 $427.50 Estimated Tax Amount $1,203.52 Total Quote in USD $16,247.52 10.h Packet Pg. 243 Attachment: h - Purchase quote Motorola Radio, Command Vehicle (1300 : Fleet Replacement Acceleration) This pricing utilizes LA Contract Master Purchase Agreement MA-IS-1240419-2 PO Issued to Motorola Solutions Inc. must: >Be a valid Purchase Order (PO)/Contract/Notice to Proceed on Company Letterhead. Note: Purchase Requisitions cannot be accepted >Have a PO Number/Contract Number & Date >Identify "Motorola Solutions Inc." as the Vendor >Have Payment Terms or Contract Number >Be issued in the Legal Entity's Name >Include a Bill-To Address with a Contact Name and Phone Number >Include a Ship-To Address with a Contact Name and Phone Number >Include an Ultimate Address (only if different than the Ship-To) >Be Greater than or Equal to the Value of the Order >Be in a Non-Editable Format >Identify Tax Exemption Status (where applicable) >Include a Signature (as Required) 10.h Packet Pg. 244 Attachment: h - Purchase quote Motorola Radio, Command Vehicle (1300 : Fleet Replacement Acceleration) E05 - 1 - Master Lease-Purchase Agreement Between CITY OF SAN LUIS OBISPO AND PNC EQUIPMENT FINANCE, LLC DOCUMENT INDEX  Master Lease-Purchase Agreement – Sign and provide title on the last page  Lease Schedule with Schedule A-1 – Sign and title  Vehicle Schedule Addendum –Sign and title  Escrow Agreement o Exhibit 1 – General Investment Direction Letter o Exhibit 2 – Escrow Agent Fees and Expenses o Exhibit 3 – Requisition Request and Certificate of Acceptance o Money Market Escrow Investment Letter- Please sign or contact Scott Miller at 614-849- 3402 with U.S Bank to select a different investment that meets your requirements.  Incumbency Certificate and Resolution– List your authorized signor(s) and title(s); have secretary or appropriate trustee attest to the information and signature(s) provided by signing and printing his/her name, title and date. The person who validates the signatures should not sign the lease documents. The resolution must reflect the title(s) of the individual(s) who have authorization to sign the documents.  Opinion of Counsel Letter – Enclosed is a template. Please ask your attorney to prepare on his/her letterhead, and include all of the items in the template.  Title - The terms of your contract specify that the Lender be listed as the lienholder and hold the original title during the term of the lease. In addition, we will need a copy of the front and back of the MSO listing Oshkosh Capital, 995 Dalton Ave, Cincinnati, OH 45203 as first lien holder.  Insurance Request Form – Fill in your insurer’s information and sign. Please contact your insurer, prior to delivery, to obtain a certificate of insurance. Please enclose the certificate with the signed documentation or have the insurer fax the certificate directly to me.  Three Party Agreement – Sign and title.  Delivery & Acceptance Certificate – At point of delivery, fill out this form and fax it to me. Please return the original via US Postal Service.  IRS FORM 8038-G – Sign, date, and title  Invoice for escrow payment – please send your check in the amount of $250.00, made payable to PNC Equipment Finance, LLC.  Minutes of Governing Body (approving the purchase & finance of equipment) – Please return a copy with the documents.  Sales Contract or Purchase Order - please provide a copy of the Sales Contract enter into with Pierce Manufacturing or a copy of the Purchase Order issued to Pierce Manufacturing Inc. 10.i Packet Pg. 245 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 2 - MASTER LEASE – PURCHASE AGREEMENT Dated as of April 28, 2016 This Master Lease-Purchase Agreement together with all addenda, riders and attachments hereto, as the same may from time to time be amended, modified or supplemented (“Master Lease”) is made and entered by and between PNC Equipment Finance, LLC (“Lessor”) and the Lessee identified below (“Lessee”). LESSEE: City of San Luis Obispo 1. LEASE OF EQUIPMENT. Subject to the terms and conditions of this Master Lease, Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, all Equipment described in each Schedule signed from time to time by Lessee and Lessor. 2. CERTAIN DEFINITIONS. All terms defined in the Lease are equally applicable to both the singular and plural form of such terms. (a) “Schedule” means each Lease Schedule signed and delivered by Lessee and Lessor, together with all addenda, riders, attachments, certificates and exhibits thereto, as the same may from time to time be amended, modified or supplemented. Lessee and Lessor agree that each Schedule (except as expressly provided in said Schedule) incorporates by reference all of the terms and conditions of the Master Lease. (b) “Lease” means each Schedule and this Master Lease as incorporated into said Schedule. (c) “Equipment” means the property described in each Schedule, together with all attachments, additions, accessions, parts, repairs, improvements, replacements and substitutions thereto. (d) “Lien” means any security interest, lien, mortgage, pledge, encumbrance, judgment, execution, attachment, warrant, writ, levy, other judicial process or claim of any nature whatsoever by or of any person. 3. LEASE TERM. The term of the lease of the Equipment described in each Lease (“Lease Term”) commences on the first date any of such Equipment is accepted by Lessee pursuant to Section 5 hereof and, unless earlier terminated as expressly provided in the Lease, continues until Lessee’s payment and performance in full of all of Lessee’s obligations under the Lease. 4. RENT PAYMENTS. 4.1 For each Lease, Lessee agrees to pay to Lessor the rent payments in the amounts and at the times as set forth in the Schedule A-1 attached to the Schedule (“Rent Payments”). A portion of each Rent Payment is paid as and represents the payment of interest as set forth in the Schedule A-1. Rent Payments will be payable for the Lease Term in U.S. dollars, without notice or demand at the office of Lessor (or such other place as Lessor may designate from time to time in writing). 4.2 If Lessor receives any payment from Lessee after the due date, Lessee shall pay Lessor on demand as a late charge five per cent (5%) of such overdue amount, limited, however, to the maximum amount allowed by law. 4.3 EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 6 HEREOF OR IN ANY WRITTEN MODIFICATION TO THE LEASE SIGNED BY LESSOR, THE OBLIGATION TO PAY RENT PAYMENTS UNDER EACH LEASE SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS AND SHALL NOT BE SUBJECT TO ANY SETOFF, DEFENSE, COUNTERCLAIM, ABATEMENT OR RECOUPMENT FOR ANY REASON WHATSOEVER. 5. DELIVERY; ACCEPTANCE; FUNDING CONDITIONS. 5.1 Lessee shall arrange for the transportation, delivery and installation of all Equipment to the location specified in the Schedule (“Location”) by Equipment suppliers (“Suppliers”) selected by Lessee. 10.i Packet Pg. 246 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 3 - Lessee shall pay all costs related thereto unless Lessor otherwise agrees to pay such costs as stated in the Schedule. 5.2 Lessee shall accept Equipment as soon as it has been delivered and is operational. Lessee shall evidence its acceptance of any Equipment by signing and delivering to Lessor the applicable Schedule. If Lessee signs and delivers a Schedule and if all Funding Conditions have been satisfied in full, then Lessor will pay or cause to be paid the costs of such Equipment as stated in the Schedule (“Purchase Price”) to the applicable Supplier. 5.3 Lessor shall have no obligation to pay any Purchase Price unless all reasonable conditions established by Lessor (“Funding Conditions”) have been satisfied, including, without limitation, the following: (a) Lessee has signed and delivered the Schedule and its Schedule A-1; (b) no Event of Default shall have occurred and be continuing; (c) no material adverse change shall have occurred in the Internal Revenue Code of 1986, as amended, and the related regulations and rulings thereunder (collectively, the “Code”); (d) no material adverse change shall have occurred in the financial condition of Lessee or any Supplier; (e) the Equipment is reasonably satisfactory to Lessor and is free and clear of any Liens (except Lessor’s Liens); (f) all representations of Lessee in the Lease remain true, accurate and complete; and (g) Lessor has received all of the following documents, which shall be reasonably satisfactory, in form and substance, to Lessor: (1) evidence of insurance coverage required by the Lease, (2) an opinion of Lessee’s counsel; (3) reasonably detailed invoices for the Equipment; (4) Uniform Commercial Code (UCC) financing statements; (5) copies of resolutions by Lessee’s governing body, duly authorizing the Lease and incumbency certificates for the person(s) who will sign the Lease; (6) such documents and certificates relating to the tax-exempt interest payable under the Lease (including, without limitation, IRS Form 8038G or 8038GC) as Lessor may request; and (7) such other documents and information previously identified by Lessor or otherwise reasonably requested by Lessor. 6. TERMINATION FOR GOVERNMENTAL NON-APPROPRIATIONS. 6.1 For each Lease, Lessee represents and warrants: that it has appropriated and budgeted the necessary funds to make all Rent Payments required pursuant to such Lease for the remainder of the fiscal year in which the Lease Term commences; and that it intends to make Rent Payments for the full Lease Term as scheduled on the applicable Schedule A-1 so long as funds are appropriated in each fiscal year by its governing body. Lessee reasonably believes that moneys in an amount sufficient to make all Rent Payments can and will lawfully be appropriated and made available therefor. All Rent Payments shall be payable out of the general funds of Lessee or out of other funds legally available therefor. Lessor agrees that the Leases will not be general obligations of Lessee and that the Leases shall not constitute pledges of either the full faith and credit of Lessee or the taxing power of Lessee. 6.2 If Lessee’s governing body fails to appropriate sufficient funds in any fiscal year for Rent Payments or other payments due under a Lease and if other funds are not available for such payments, then a “Non-Appropriation Event” shall be deemed to have occurred. If a Non-Appropriation Event occurs, then: (a) Lessee shall give Lessor immediate notice of such Non-Appropriation Event and provide written evidence of such failure by Lessee’s governing body; (b) on the Return Date, Lessee shall return to Lessor all, but not less than all, of the Equipment covered by the affected Lease, at Lessee’s sole expense, in accordance with Section 21 hereof; and (c) the affected Lease shall terminate on the Return Date without penalty or expense to Lessee, provided, that Lessee shall pay all Rent Payments and other amounts payable under the affected Lease for which funds shall have been appropriated or are otherwise available, provided further, that Lessee shall pay month-to-month rent at the rate set forth in the affected Lease for each month or part thereof that Lessee fails to return the Equipment under this Section 6.2. “Return Date” means the last day of the fiscal year for which appropriations were made for the Rent Payments due under a Lease. 7. NO WARRANTY BY LESSOR. The Equipment is sold “AS IS”. LESSEE ACKNOWLEDGES THAT LESSOR DID NOT MANUFACTURE THE EQUIPMENT. LESSOR DOES NOT REPRESENT THE MANUFACTURER, OWNER, OR DEALER, AND LESSEE SELECTED THE EQUIPMENT BASED UPON LESSEE’S OWN JUDGMENT. LESSOR MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE OR AS TO THE EQUIPMENT’S VALUE, DESIGN, CONDITION, USE, CAPACITY OR DURABILITY. LESSEE AGREES THAT REGARDLESS OF CAUSE, LESSOR IS NOT RESPONSIBLE FOR, AND LESSEE WILL NOT MAKE ANY CLAIM AGAINST LESSOR FOR, ANY DAMAGES, 10.i Packet Pg. 247 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 4 - WHETHER CONSEQUENTIAL, DIRECT, SPECIAL OR INDIRECT INCURRED BY LESSEE IN CONNECTION WITH THE EQUIPMENT OR THIS MASTER LEASE – LEASE PURCHASE AGREEMENT. NEITHER THE M ANUFACTURER, THE DEALER, NOR ANY SALESPERSON, EMPLOYEE OR AGENT OF THE DEALER OR MANUFACTURER, IS LESSOR’S AGENT OR HAS ANY AUTHORITY TO SPEAK FOR LESSOR OR TO BIND LESSOR IN ANY WAY. For and during the Lease Term, Lessor hereby assigns to Lessee any manufacturer’s or Supplier’s product warranties, express or implied, applicable to any Equipment and Lessor authorizes Lessee to obtain the customary services furnished in connection with such warranties at Lessee’s sole expense. Lessee agrees that (a) all Equipment will have been purchased by Lessor in accordance with Lessee’s specifications from Suppliers selected by Lessee, (b) Lessor is not a manufacturer or dealer of any Equipment and has no liability for the delivery or installation of any Equipment, (c) Lessor assumes no obligation with respect to any manufacturer’s or Supplier’s product warranties or guaranties, (d) no manufacturer or Supplier or any representative of said parties is an agent of Lessor, and (e) any warranty, representation, guaranty or agreement made by any manufacturer or Supplier or any representative of said parties shall not be binding upon Lessor. 8. TITLE; SECURITY INTEREST. 8.1 Upon Lessee’s acceptance of any Equipment under its Lease, title to the Equipment shall vest in Lessee, subject to Lessor’s security interest therein and all of Lessor’s other rights under such Lease including, without limitation, Sections 6, 20 and 21 hereof. 8.2 As collateral security for the Secured Obligations, Lessee hereby grants to Lessor a first priority security interest in any and all of the Equipment (now existing or hereafter acquired) and any and all proceeds thereof. Lessee agrees to execute and deliver to Lessor all necessary documents to evidence and perfect such security interest, including, without limitation, Uniform Commercial Code (UCC) financing statements and any amendments thereto. 8.3 “Secured Obligations” means Lessee’s obligations to pay all Rent Payments and all other amounts due and payable under all present and future Leases and to perform and observe all covenants, agreements and conditions (direct or indirect, absolute or contingent, due or to become due, or existing or hereafter arising) of Lessee under all present and future Leases. 9. PERSONAL PROPERTY. All Equipment is and will remain personal property and will not be deemed to be affixed or attached to real estate or any building thereon. 10. MAINTENANCE AND OPERATION. Lessee agrees it shall, at its sole expense: (a) repair and maintain all Equipment in good condition and working order, in accordance with manufacturer’s instructions, and supply and install all replacement parts or other devices when required to so maintain the Equipment or when required by applicable law or regulation, which parts or devices shall automatically become part of the Equipment; and (b) use and operate all Equipment in a careful manner in the normal course of its operations and only for the purposes for which it was designed in accordance with the manufacturer’s warranty requirements, and comply with all laws and regulations relating to the Equipment. If any Equipment is customarily covered by a maintenance agreement, Lessee will furnish Lessor with a maintenance agreement by a party reasonably satisfactory to Lessor. No maintenance or other service for any Equipment will be provided by Lessor. Lessee will not make any alterations, additions or improvements (“Improvements”) to any Equipment without Lessor’s prior written consent unless the Improvements may be readily removed without damage to the operation, value or utility of such Equipment, but any such Improvements not removed prior to the termination of the applicable Lease shall automatically become part of the Equipment. 11. LOCATION; INSPECTION. Equipment will not be removed from, or if Equipment is rolling stock its permanent base will not be changed from, the Location without Lessor’s prior written consent which will not be unreasonably withheld. Upon reasonable notice to Lessee, Lessor may enter the Location or elsewhere during normal business hours to inspect the Equipment. 12. LIENS, SUBLEASES AND TAXES. 10.i Packet Pg. 248 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 5 - 12.1 Lessee shall keep all Equipment free and clear of all Liens except those Liens created under its Lease. Lessee shall not sublet or lend any Equipment or permit it to be used by anyone other than Lessee or Lessee’s employees. 12.2 Lessee shall pay when due all Taxes which may now or hereafter be imposed upon any Equipment or its ownership, leasing, rental, sale, purchase, possession or use, upon any Lease or upon any Rent Payments or any other payments due under any Lease. If Lessee fails to pay such Taxes when due, Lessor shall have the right, but not the obligation, to pay such Taxes. If Lessor pays any such Taxes, then Lessee shall, upon demand, immediately reimburse Lessor therefor. “Taxes” means present and future taxes, levies, duties, assessments or other governmental charges that are not based on the net income of Lessor, whether they are assessed to or payable by Lessee or Lessor, including, without limitation (a) sales, use, excise, licensing, registration, titling, gross receipts, stamp and personal property taxes, and (b) interest, penalties or fines on any of the foregoing. 13. RISK OF LOSS. 13.1 Lessee bears the entire risk of loss, theft, damage or destruction of any Equipment in whole or in part from any reason whatsoever (“Casualty Loss”). No Casualty Loss to any Equipment shall relieve Lessee from the obligation to make any Rent Payments or to perform any other obligation under any Lease. Proceeds of any insurance recovery will be applied to Lessee’s obligations under this Section 13. 13.2 If a Casualty Loss occurs to any Equipment, Lessee shall immediately notify Lessor of the same and Lessee shall, unless otherwise directed by Lessor, immediately repair the same. 13.3 If Lessor determines that any item of Equipment has suffered a Casualty Loss beyond repair (“Lost Equipment”), then Lessee shall either: (a) immediately replace the Lost Equipment with similar equipment in good repair, condition and working order free and clear of any Liens (except Lessor’s Liens) and deliver to Lessor a bill of sale covering the replacement equipment, in which event such replacement equipment shall automatically be Equipment under the applicable Lease; or (b) on the next scheduled Rent Payment date, pay Lessor (i) all amounts owed by Lessee under the applicable Lease, including the Rent Payment due on such date plus (ii) an amount equal to the applicable Termination Value set forth in the Payment Schedule to the applicable Lease. If Lessee is making such payment with respect to less than all of the Equipment under a Lease, then Lessor will provide Lessee with the pro rata amount of the Rent Payment and Termination Value to be paid by Lessee with respect to the Lost Equipment. 13.4 Lessee shall bear the risk of loss for, shall pay directly, and shall defend against any and all claims, liabilities, proceedings, actions, expenses (including reasonable attorney’s fees), damages or losses arising under or related to any Equipment, including, but not limited to, the possession, ownership, lease, use or operation thereof. These obligations of Lessee shall survive any expiration or termination of any Lease. Lessee shall not bear the risk of loss of, nor pay for, any claims, liabilities, proceedings, actions, expenses (including attorney’s fees), damages or losses which arise directly from events occurring after any Equipment has been returned by Lessee to Lessor in accordance with the terms of the applicable Lease or which arise directly from the gross negligence or willful misconduct of Lessor. 14. INSURANCE. 14.1 (a) Lessee at its sole expense shall at all times keep all Equipment insured against all risks of loss or damage from every cause whatsoever for an amount not less than the Termination Value of the Equipment. Proceeds of any such insurance covering damage or loss of any Equipment shall be payable to Lessor as loss payee. (b) The Total Amount Financed as set forth on the Schedule A-1 does not include the payment of any premium for any liabilit y insurance coverage for bodily injury and/or property damage caused to others and no such insurance will be purchased by Lessor. (c) Lessee at its sole expense shall at all times carry public liability and property damage insurance in amounts reasonably satisfactory to Lessor protecting Lessee and Lessor from liabilities for injuries to persons and damage to property of others relating in any way to any Equipment. Proceeds of any such public liability or property insurance shall be payable first to Lessor as additional insured to the extent of its liability, and then to Lessee. 14.2 All insurers shall be reasonably satisfactory to Lessor. Lessee shall promptly deliver to Lessor satisfactory evidence of required insurance coverage and all renewals and replacements thereof. 10.i Packet Pg. 249 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 6 - Each insurance policy will require that the insurer give Lessor at least 30 days prior written notice of any cancellation of such policy and will require that Lessor’s interests remain insured regardless of any act, error, misrepresentation, omission or neglect of Lessee. The insurance maintained by Lessee shall be primary without any right of contribution from insurance which may be maintained by Lessor. 15. PURCHASE OPTION. Upon thirty (30) days prior written notice by Lessee to Lessor, and so long as there is no Event of Default then existing, Lessee shall have the option to purchase all, but not less than all, of the Equipment covered by a Lease on any Rent Payment due date by paying to Lessor all Rent Payments then due (including accrued interest, if any) plus the Termination Value amount set forth on the Payment Schedule to the applicable Lease for such date. Upon satisfaction by Lessee of such purchase conditions, Lessor shall release its Lien on such Equipment and Lessee shall retain its title to such Equipment “AS-IS, WHERE-IS,” without representation or warranty by Lessor, express or implied, except for a representation that such Equipment is free and clear of any Liens created by Lessor. 16. LESSEE’S REPRESENTATIONS AND WARRANTIES. With respect to each Lease and its Equipment, Lessee hereby represents and warrants to Lessor that: (a) Lessee has full power, authority and legal right to execute and deliver the Lease and to perform its obligations under the Lease, and all such actions have been duly authorized by appropriate findings and actions of Lessee’s governing body; (b) the Lease has been duly executed and delivered by Lessee and constitutes a legal, valid and binding obligation of Lessee, enforceable in accordance with its terms; (c) the Lease is authorized under, and the authorization, execution and delivery of the Lease complies with, all applicable federal, state and local laws and regulations (including, but not limited to, all open meeting, public bidding and property acquisition laws) and all applicable judgments and court orders; (d) the execution, delivery and performance by Lessee of its obligations under the Lease will not result in a breach or violation of, nor constitute a default under, any agreement, lease or other instrument to which Lessee is a party or by which Lessee’s properties may be bound or affected; (e) there is no pending, or to the best of Lessee’s knowledge threatened, litigation of any nature which may have a material adverse effect on Lessee’s ability to perform its obligations under the Lease; and (f) Lessee is a state, or a political subdivision thereof, as referred to in Section 103 of the Code, and Lessee’s obligation under the Lease constitutes an enforceable obligation issued on behalf of a state or a political subdivision thereof. 17. TAX COVENANTS. Lessee hereby covenants and agrees that: (a) Lessee shall comply with all of the requirements of Section 149(a) and Section 149(e) of the Code, as the same may be amended from time to time, and such compliance shall include, but not be limited to, keeping a complete and accurate record of any assignments of any Lease and executing and filing Internal Revenue Form 8038G or 8038GC, as the case may be, and any other information statements reasonably requested by Lessor; (b) Lessee shall not do (or cause to be done) any act which will cause, or by omission of any act allow, any Lease to be an “arbitrage bond” within the meaning of Section 148(a) of the Code or any Lease to be a “private activity bond” within the meaning of Section 141(a) of the Code; and (c) Lessee shall not do (or cause to be done) any act which will cause, or by omission of any act allow, the interest portion of any Rent Payments to be or become includable in gross income for Federal income taxation purposes under the Code. (d) If Lessor either (i) receives notice, in any form, from the IRS; or (ii) reasonably determines, based on an opinion of independent tax counsel selected by Lessor and approved by Lessee, which approval Lessee shall not unreasonably withhold, that Lessor may not exclude the interest component of 10.i Packet Pg. 250 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 7 - any Rent Payment under a Tax-Exempt Lease from federal gross income because Lessee breached a covenant contained herein, then Lessee shall pay to Lessor, within thirty (30) days after Lessor notifies Lessee of such determination, the amount which, with respect to Rent Payments previously paid and taking into account all penalties, fines, interest and additions to tax (including all federal, state and local taxes imposed on the interest component of all Rent Payments under such Tax-Exempt Lease due through the date of such event) that are imposed on Lessor as a result of the loss of the exclusion, will restore to Lessor the same after-tax yield on the transaction evidenced by such Tax-Exempt Lease (assuming tax at the highest marginal corporate tax rate) that it would have realized had the exclusion not been lost. Additionally, Lessee agrees that upon the occurrence of such an event with respect to a Tax-Exempt Lease, it shall pay additional rent to Lessor on each succeeding Rent Payment due date in such amount as will maintain such after-tax yield to Lessor. Lessor’s determination of the amount necessary to maintain its after-tax yield as provided in this subsection (b) shall be conclusive (absent manifest error). Notwithstanding anything in a Tax-Exempt Lease to the contrary, any payment that Lessee is required to make pursuant to this subsection (b) shall be made only from Legally Available Funds. 18. ASSIGNMENT. 18.1 Lessee shall not assign, transfer, pledge, hypothecate, nor grant any Lien on, nor otherwise dispose of, any Lease or any Equipment or any interest in any Lease or Equipment. 18.2 Lessor may assign its rights, title and interest in and to any Lease or any Equipment, and/or may grant or assign a security interest in any Lease and its Equipment, in whole or in part, to any party at any time. Any such assignee or lien holder (an “Assignee”) shall have all of the rights of Lessor under the applicable Lease. LESSEE AGREES NOT TO ASSERT AGAINST ANY ASSIGNEE ANY CLAIMS, ABATEMENTS, SETOFFS, COUNTERCLAIMS, RECOUPMENT OR ANY OTHER SIMILAR DEFENSES WHICH LESSEE MAY HAVE AGAINST LESSOR. Unless otherwise agreed by Lessee in writing, any such assignment transaction shall not release Lessor from any of Lessor’s obligations under the applicable Lease. An assignment or reassignment of any of Lessor’s right, title or interest in a Lease or its Equipment shall be enforceable against Lessee only after Lessee receives a written notice of assignment which discloses the name and address of each such Assignee. Lessee shall keep a complete and accurate record of all such assignments in the form necessary to comply with Section 149(a) of the Code. Lessee agrees to acknowledge in writing any such assignments if so requested. 18.3 Each Assignee of a Lease hereby agrees that: (a) the term Secured Obligations as used in Section 8.3 hereof is hereby amended to include and apply to all obligations of Lessee under the Assigned Leases and to exclude the obligations of Lessee under any Non-Assigned Leases; (b) said Assignee shall have no Lien on, nor any claim to, nor any interest of any kind in, any Non-Assigned Leases; and (c) Assignee shall exercise its rights, benefits and remedies as the assignee of Lessor (including, without limitation, the remedies under Section 20 of the Master Lease) solely with respect to the Assigned Leases. “Assigned Leases” means only those Leases which have been assigned to an Assignee pursuant to a written agreement; and “Non-Assigned Leases” means all Leases excluding the Assigned Leases. 18.4 Subject to the foregoing, each Lease inures to the benefit of and is binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 19. EVENTS OF DEFAULT. For each Lease, “Event of Default” means the occurrence of any one or more of the following events as they may relate to such Lease: (a) Lessee fails to make any Rent Payment (or any other payment) as it becomes due in accordance with the terms of the Lease, and any such failure continues for ten (10) days after the due date thereof; (b) Lessee fails to perform or observe any of its obligations under Sections 12.1, 14 or 18.1 hereof; (c) Lessee fails to perform or observe any other covenant, condition or agreement to be performed or observed by it under the Lease and such failure is not cured within thirty (30) days after receipt of written notice thereof by Lessor; (d) any statement, representation or warranty made by Lessee in the Lease or in any writing delivered by Lessee pursuant thereto or in connection therewith proves at any time to have been false, misleading or erroneous in any material respect as of the time when made; (e) Lessee applies for or consents to the appointment of a receiver, trustee, conservator or liquidator of Lessee or of all or a substantial part of its 10.i Packet Pg. 251 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 8 - assets, or a petition for relief is filed by Lessee under any federal or state bankruptcy, insolvency or similar law, or a petition in a proceeding under any federal or state bankruptcy, insolvency or similar law is filed against Lessee and is not dismissed within sixty (60) days thereafter; or (f) Lessee shall be in default under any other Lease or under any other financing agreement executed at any time with Lessor. 20. REMEDIES. If any Event of Default occurs, then Lessor may, at its option, exercise any one or more of the following remedies: (a) Lessor may require Lessee to pay (and Lessee agrees that it shall pay) all amounts then currently due under all Leases and all remaining Rent Payments due under all Leases during the fiscal year in effect when the default occurs together with interest on such amounts at the highest lawful rate from the date of Lessor’s demand for such payment. (b) Lessor may require Lessee to promptly return all Equipment to Lessor in the manner set forth in Section 21 (and Lessee agrees that it shall so return the Equipment), or Lessor may, at its option, enter upon the premises where any Equipment is located and repossess such Equipment without demand or notice, without any court order or other process of law and without liability for any damage occasioned by such repossession; (c) Lessor may sell, lease or otherwise dispose of any Equipment, in whole or in part, in one or more public or private transactions, and if Lessor so disposes of any Equipment, then Lessor shall retain the entire proceeds of such disposition free of any claims of Lessee, provided, that the net proceeds of any such disposition shall be applied to amounts payable by Lessee under clause (a) above of this Section only to the extent that such net proceeds exceed the applicable Termination Value set forth in the applicable Schedule A-1; (d) Lessor may terminate, cancel or rescind any Lease as to any and all Equipment; (e) Lessor may exercise any other right, remedy or privilege which may be available to Lessor under applicable law or, by appropriate court action at law or in equity, Lessor may enforce any of Lessee’s obligations under any Lease; and/or (f) Lessor may require Lessee to pay (and Lessee agrees that it shall pay) all out-of-pocket costs and expenses incurred by Lessor as a result (directly or indirectly) of the Event of Default and/or of Lessor’s actions under this section, including, without limitation, any attorney fees and expenses and any costs related to the repossession, safekeeping, storage, repair, reconditioning or disposition of any Equipment. None of the above remedies is exclusive, but each is cumulative and in addition to any other remedy available to Lessor. Lessor’s exercise of one or more remedies shall not preclude its exercise of any other remedy. No delay or failure on the part of Lessor to exercise any remedy under any Lease shall operate as a waiver thereof, nor as an acquiescence in any default, nor shall any single or partial exercise of any remedy preclude any other exercise thereof or the exercise of any other remedy. 21. RETURN OF EQUIPMENT. If Lessor is entitled under the provisions of any Lease, including any termination thereof pursuant to Sections 6 or 20 of this Master Lease, to obtain possession of any Equipment or if Lessee is obligated at any time to return any Equipment, then (a) title to the Equipment shall vest in Lessor immediately upon Lessors notice thereof to Lessee, and (b) Lessee shall, at its sole expense and risk, immediately de-install, disassemble, pack, crate, insure and return the Equipment to Lessor (all in accordance with applicable industry standards) at any location in the continental United States selected by Lessor. Such Equipment shall be in the same condition as when received by Lessee (reasonable wear, tear and depreciation resulting from normal and proper use excepted), shall be in good operating order and maintenance as required by the applicable Lease, shall be free and clear of any Liens (except Lessor’s Lien) and shall comply with all applicable laws and regulations. Until Equipment is returned as required above, all terms of the applicable Lease shall remain in full force and effect including, without limitation, obligations to pay Rent Payments and to insure the Equipment. Lessee agrees to execute and deliver to Lessor all documents reasonably requested by Lessor to evidence the transfer of legal and beneficial title to such Equipment to Lessor and to evidence the termination of Lessee’s interest in such Equipment. 10.i Packet Pg. 252 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 9 - 22. LAW GOVERNING. Each Lease shall be governed by the laws of the state of the lessee (The “State”). 23. NOTICES. All notices to be given under any Lease shall be made in writing and either personally delivered or mailed by certified mail to the other party at its address set forth herein or at such address as the party may provide in writing from time to time. Any such notices shall be deemed to have been received five (5) days subsequent to mailing if sent by regular or certified mail, or on the next business day if sent by overnight courier, or on the day of delivery if delivered personally. 24. FINANCIAL INFORMATION; INDEMNITY; POWER OF ATTORNEY. Within thirty (30) days of their completion in each fiscal year of Lessee during any Lease Term, Lessee will deliver to Lessor upon Lessor’s request the publicly available annual financial information of Lessee. To the extent permitted by law, Lessee shall indemnify, hold harmless and, if Lessor requests, defend Lessor and its shareholders, affiliates, employees, dealers and agents against all Claims directly or indirectly arising out of or connected with (a) the manufacture, installation, use, lease, possession or delivery of the Equipment, (b) any defects in the Equipment, any wrongful act or omission of Lessee, or its employees and agents, or (c) any claims of alleged breach by Lessee of this Master Lease or any related document. “Claims” means all losses, liabilities, damages, penalties, expenses (including attorney’s fees and costs), claims, actions and suits, whether in contract, tort or otherwise. Lessee hereby appoints Lessor its true and lawful attorney-in-fact (with full power of substitution) to prepare any instrument, certificate of title or financing statement covering the Equipment or otherwise protecting Lessor’s interest in the Equipment, to sign Lessee’s name with the same force and effect as if signed by Lessee, and to file same at the proper location(s); and make claims for, receive payment of, and execute and endorse all documents, checks or drafts for loss, theft, damage or destruction to the Equipment under any insurance. 25. ANTI-MONEY LAUNDERING/INTERNATIONAL TRADE LAW COMPLIANCE. Lessee represents and warrants to Lessor, as of the date of this Master Lease, the date of each advance of proceeds pursuant to this Master Lease, the date of any renewal, extension or modification of this Master Lease or any Lease, and at all times until this Master Lease and each Lease has been terminated and all amounts thereunder have been indefeasibly paid in full, that: (a) no Covered Entity (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person; or (iii) does business in or with, or derives any of its operating income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (b) the proceeds of any Lease will not be used to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (c) the funds used to repay any Lease are not derived from any unlawful activity; and (d) each Covered Entity is in compliance with, and no Covered Entity engages in any dealings or transactions prohibited by, any laws of the United States, including but not limited to any Anti-Terrorism Laws. Lessee covenants and agrees that it shall immediately notify Lessor in writing upon the occurrence of a Reportable Compliance Event. As used herein: “Anti-Terrorism Laws” means any laws relating to terrorism, trade sanctions programs and embargoes, import/export licensing, money laundering, or bribery, all as amended, supplemented or replaced from time to time; “Compliance Authority” means each and all of the (a) U.S. Treasury Department/Office of Foreign Assets Control, (b) U.S. Treasury Department/Financial Crimes Enforcement Network, (c) U.S. State Department/Directorate of Defense Trade Controls, (d) U.S. Commerce Department/Bureau of Industry and Security, (e) U.S. Internal Revenue Service, (f) U.S. Justice Department, and (g) U.S. Securities and Exchange Commission; “Covered Entity” means Lessee, its affiliates and subsidiaries, all guarantors, pledgors of collateral, all owners of the foregoing, and all brokers or other agents of Lessee acting in any capacity in connection with this Master Lease or any Lease; “Reportable Compliance Event” means that any Covered Entity becomes a Sanctioned Person, or is indicted, arraigned, investigated or custodially detained, or receives an inquiry from regulatory or law enforcement officials, in connection with any Anti-Terrorism Law or any predicate crime to any Anti- Terrorism Law, or self-discovers facts or circumstances implicating any aspect of its operations with the actual or possible violation of any Anti-Terrorism Law; “Sanctioned Country” means a country subject to a sanctions program maintained by any Compliance Authority; and “Sanctioned Person” means any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person or entity, or subject to any limitations or prohibitions (including 10.i Packet Pg. 253 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 10 - but not limited to the blocking of property or rejection of transactions), under any order or directive of any Compliance Authority or otherwise subject to, or specially designated under, any sanctions program maintained by any Compliance Authority. 26. USA PATRIOT ACT NOTICE. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each lessee that opens an account. What this means: when Lessee opens an account, Lessor will ask for the business name, business address, taxpayer identifying number and other information that will allow Lessor to identify Lessee, such as organizational documents. For some businesses and organizations, Lessor may also need to ask for identifying information and documentation relating to certain individuals associated with the business or organization. 27. SECTION HEADINGS. All section headings contained herein or in any Schedule are for convenience of reference only and do not define or limit the scope of any provision of any Lease. 28. EXECUTION IN COUNTERPARTS. Each Schedule to this Master Lease may be executed in several counterparts, each of which shall be deemed an original, but all of which shall be deemed one instrument. Only one counterpart of each Schedule shall be marked “Lessor’s Original” and all other counterparts shall be deemed duplicates. An assignment of or security interest in any Schedule may be created through transfer and possession only of the counterpart marked “Lessor’s Original.” 29. ENTIRE AGREEMENT; WRITTEN AMENDMENTS. Each Lease, together with the exhibits attached thereto and made a part hereof and other attachments thereto, and other documents or instruments executed by Lessee and Lessor in connection therewith, constitute the entire agreement between the parties with respect to the lease of the Equipment covered thereby, and such Lease shall not be modified, amended, altered, or changed except with the written consent of Lessee and Lessor. Any provision of any Lease found to be prohibited by law shall be ineffective to the extent of such prohibition without invalidating the remainder of the Lease. 30. HEAVY-DUTY VEHICLE GREENHOUSE GAS EMISSION REDUCTION REGULATION. (a) If the equipment leased pursuant to the Lease is a tractor, the Lessee of this heavy-duty tractor understands that when using a heavy-duty tractor to pull a 53-foot or longer box-type trailer on a highway within California, the heavy-duty tractor must be compliant with sections 95300-95312, title 17, California Code of Regulations, and that it is the responsibility of the Lessee to ensure this heavy-duty tractor is compliant. The regulations may require this heavy-duty tractor to have low-rolling-resistance tires that are U.S. Environmental Protection Agency (U.S. EPA) SmartWay Verified Technologies prior to current or future use in California, or may entirely prohibit use of this tractor in California if it is a model year 2011 or later tractor and is not a U.S. EPA SmartWay Certified Tractor. (b) If the equipment leased pursuant to the Lease is a trailer, the Lessee of this box-type trailer understands that when using a heavy-duty tractor to pull a 53-foot or longer box-type trailer on a highway within California, the box-type trailer must be compliant with sections 95300-95312, title 17, California Code of Regulations, and that it is the responsibility of the Lessee to ensure this box-type trailer is compliant. The regulations may require this trailer to have low-rolling-resistance tires and aerodynamic technologies that are U.S. Environmental Protection Agency SmartWay Verified Technologies prior to current or future use in California. (c) Notwithstanding anything in the Lease to the contrary, the Lease does not prohibit the Lessee from modifying the trailer, at Lessee’s cost, to be compliant with the requirements of the California Heavy- Duty Vehicle Greenhouse Gas Emission Reduction Regulation. 31. IMPORTANT INFORMATION ABOUT PHONE CALLS. By providing telephone number(s) to Lessor, now or at any later time, Lessee authorizes Lessor and its affiliates and designees to contact Lessee regarding Lessee account(s) with Lessor or its affiliates, whether such accounts are Lessee individual accounts or business accounts for which Lessee is a contact, at such numbers using any means, including but not limited to placing calls using an automated dialing system to cell, VoIP or other wireless phone number, or leaving prerecorded messages or sending text messages, even if charges 10.i Packet Pg. 254 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E05 - 11 - may be incurred for the calls or text messages. Lessee consents that any phone call with Lessor may be monitored or recorded by Lessor. City of San Luis Obispo (“Lessee”) By: Title: Attention: Finance Director 990 Palm Street San Luis Obispo, CA 93401 PNC Equipment Finance, LLC (“Lessor”) By: Title 155 East Broad Street, B4-B230-05-7 Columbus, OH 43215 10.i Packet Pg. 255 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E28 LEASE SCHEDULE NO. 196140000 Dated As Of April 28, 2016 This Lease Schedule (this “Schedule”) is attached and made a part of the Master Lease-Purchase Agreement referenced below, together with all exhibits, schedules, addenda, and other attachments thereto, executed by Lessee and Lessor (the “Lease”). Unless otherwise defined herein, capitalized terms will have the same meaning ascribed to them in the Master Lease. All terms and conditions of the Master Lease are incorporated herein by reference. To the extent that there is any conflict between the terms of the Lease and this Schedule, the terms of this Schedule shall control. Master Lease-Purchase Agreement dated April 28, 2016 1. EQUIPMENT DESCRIPTION. As used in the Lease, “Equipment” means all of the property described in Schedule A-1 attached to this Schedule and all attachments, additions, accessions, parts, repairs, improvements, replacements and substitutions thereto. 2. RENTAL PAYMENTS; LEASE TERM. The Rental Payments to be paid by the Lessee to Lessor, the commencement date thereof and the lease term of this Lease Schedule are set forth on the Schedule A-1 attached to this Lease Schedule. 3. ESSENTIAL USE; CURRENT INTENT OF LESSEE. Lessee represents that the use of the Equipment is essential to Lessee’s proper, efficient and economic functioning or to the services that Lessee provides to its citizens and the Equipment will be used by Lessee only for the purpose of performing its governmental or proprietary functions consistent with the permissible scope of its authority. Lessee currently intends for the full Lease Term: to use the Equipment; to continue this Lease; and (if applicable) to make Rent Payments if funds are appropriated in each fiscal year by its governing body. 4. ACCEPTANCE OF EQUIPMENT. AS BETWEEN LESSEE AND LESSOR, LESSEE AGREES THAT (A) LESSEE HAS RECEIVED AND INSPECTED ALL EQUIPMENT; (B) ALL EQUIPMENT IS IN GOOD WORKING ORDER AND COMPLIES WITH ALL PURCHASE ORDERS, CONTRACTS AND SPECIFICATIONS; (C) LESSEE ACCEPTS ALL EQUIPMENT FOR PURPOSES OF THE LEASE “AS-IS, WHERE IS”; AND (D) LESSEE WAIVES ANY RIGHT TO REVOKE SUCH ACCEPTANCE. 5. BANK QUALIFIED. LESSEE CERTIFIES THAT IT HAS DESIGNATED THIS LEASE AS A QUALIFIED TAX-EXEMPT OBLIGATION IN ACCORDANCE WITH SECTION 265(b)(3) OF THE CODE, THAT IT HAS NOT DESIGNATED MORE THAN $10,000,000 OF ITS OBLIGATIONS AS QUALIFIED TAX-EXEMPT OBLIGATIONS IN ACCORDANCE WITH SUCH SECTION FOR THE CURRENT CALENDAR YEAR AND THAT IT REASONABLY ANTICIPATES THAT THE TOTAL AMOUNT OF TAX-EXEMPT OBLIGATIONS TO BE ISSUED BY LESSEE DURING THE CURRENT CALENDAR YEAR WILL NOT EXCEED $10,000,000. 6. RE-AFFIRMATION OF THE MASTER LEASE-PURCHASE AGREEMENT. Lessee hereby re-affirms all of its representations, warranties and obligations under the Master Lease Purchase Agreement (including, without limitation, its obligation to pay all Rental Payments, its disclaimers in Section 7 thereof and its representations in Section 6.1 and 16 thereof). City of San Luis Obispo (“Lessee”) PNC Equipment Finance, LLC (“Lessor”) By: By: Title: Title: 10.i Packet Pg. 256 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E28 Schedule A-1 1. EQUIPMENT LOCATION & DESCRIPTION: City of San Luis Obispo 136 N Chorro San Luis Obispo, CA 93401 San Luis Obispo County 2016 Pierce Arrow XT 75' PUC VIN# TYMCO Model 600 Regenerative Air Street Sweeper VIN# 2. LEASE PAYMENT SCHEDULE. (a) Accrual Date: April 28, 2016 (b) Amount Financed: i. Purchase Price for Pierce Arrow XT 75” PUC $869,806.17 Purchase Price for Street Sweeper $219,535.00 Sales Tax $84,361.92 Freight $9,000.00 ii. Purchase Price Deduction $0.00 Prepay Discounts $41,235.00 Trade In $0.00 iii. Total Amount Financed (Cash Sale Price minus Purchase Price Deductions) $1,141,468.09 10.i Packet Pg. 257 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E28 (c) Payment Schedule: Accrual Date: April 28, 2016 Rent Payment Number Rent Payment Date Rent Payment Amount Interest Portion Principal Portion Termination Value 1 4/28/2017 240,067.42 19,404.96 220,662.46 948,429.80 2 4/28/2018 240,067.42 15,653.70 224,413.72 717,283.67 3 4/28/2019 240,067.42 11,838.66 228,228.76 482,208.04 4 4/28/2020 240,067.42 7,958.77 232,108.65 243,136.14 5 4/28/2021 240,067.42 4,012.92 236,054.50 1.00 City of San Luis Obispo PNC Equipment Finance, LLC (“Lessee”) (“Lessor”) By: By: Title: Title: 10.i Packet Pg. 258 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E28 VEHICLE SCHEDULE ADDENDUM Dated As Of April 28, 2016 Lease Schedule No. 196140000 Dated April 28, 2016 Lessee: City of San Luis Obispo Reference is made to the above Lease Schedule (“Schedule”) to the Master Lease-Purchase Agreement identified in the Lease Schedule (“Master Lease”) by and between PNC Equipment Finance, LLC (“Lessor”) and the above Lessee (“Lessee”). This Addendum amends and modifies the terms and conditions of the Schedule and is hereby made a part of the Schedule. Unless otherwise defined herein, capitalized terms defined in the Master Lease shall have the same meaning when used herein. NOW THEREFORE, as part of the valuable consideration to induce the execution of the Schedule, Lessor and Lessee hereby agree to amend the Schedule as follows: 1. In the event that any unit of Equipment covered by the Schedule is a vehicle or trailer under applicable State law, then the following provisions shall also apply to the Schedule to the extent permitted by law, (a) each manufacturer’s statement of origin and certificate of title shall state that Lessor has the first and sole lien on or security interest in such unit of Equipment; (b) the public liability and property damage insurance required by the terms of the paragraph titled “Insurance in the Master Lease shall be in an amount not less than $1,000,000.00 per person insured and $2,000,000.00 combined single limit per unit per occurrence (provided, that if the unit of Equipment is a bus or other passenger vehicle, then such insurance amount shall be such larger amount as may be reasonably required by Lessor) and $1,000,000.00 for damage to property of others; (c) Lessee shall furnish and permit only duly licensed, trained, safe and qualified drivers to operate any such unit of Equipment, and such drivers shall be agents of Lessee and shall not be agents of Lessor; and (d) Lessee shall cause each such unit of Equipment to be duly registered and licensed as required by applicable State law with Lessor noted as lien holder and Lessee as owner. 2. Except as expressly amended by this Addendum and other modifications signed by Lessor, the Schedule remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first referenced above. City of San Luis Obispo PNC Equipment Finance, LLC (“Lessee”) (“Lessor”) By: By: Title: Title: 10.i Packet Pg. 259 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E24 RESOLUTION Municipality/Lessee: City of San Luis Obispo Principal Amount Expected To Be Financed: $1,141,468.09 WHEREAS, the Municipality is a political subdivision of the State in which Municipality is located (the “State”) and is duly organized and existing pursuant to the Constitution and laws of the State. WHEREAS, pursuant to applicable law, the governing body of the Municipality (“Governing Body”) is authorized to acquire, dispose of and encumber real and personal property, including, without limitation, rights and interest in property, leases and easements necessary to the functions or operations of the Municipality. WHEREAS, the Governing Body hereby finds and determines that the execution of one or more Master Lease-Purchase Agreements (“Leases”) in the principal amount not exceeding the amount stated above for the purpose of acquiring the property (“Equipment”) to be described in the Leases is appropriate and necessary to the functions and operations of the Municipality. WHEREAS, PNC Equipment Finance, LLC (“Lessor”) shall act as Lessor under said Leases. NOW, THEREFORE, Be It Ordained by the Governing Body of the Municipality: Section 1. Either one of the _______________________ OR _______________________ (each an “Authorized Representative”) acting on behalf of the Municipality, is hereby authorized to negotiate, enter into, execute, and deliver one or more Leases in substantially the form set forth in the document presently before the Governing Body, which document is available for public inspection at the office of the Municipality. Each Authorized Representative acting on behalf of the Municipality is hereby authorized to negotiate, enter into, execute, and deliver such other documents relating to the Lease as the Authorized Representative deems necessary and appropriate. All other related contracts and agreements necessary and incidental to the Leases are hereby authorized. Section 2. By a written instrument signed by any Authorized Representative, said Authorized Representative may designate specifically identified officers or employees of the Municipality to execute and deliver agreements and documents relating to the Leases on behalf of the Municipality. Section 3. The aggregate original principal amount of the Leases shall not exceed the amount stated above and shall bear interest as set forth in the Leases and the Leases shall contain such options to purchase by the Municipality as set forth therein. Section 4. The Municipality’s obligations under the Leases shall be subject to annual appropriation or renewal by the Governing Body as set forth in each Lease and the Municipality’s obligations under the Leases shall not constitute general obligations of the Municipality or indebtedness under the Constitution or laws of the State. Section 5. As to each Lease, the Municipality reasonably anticipates to issue not more than $10,000,000 of tax-exempt obligations (other than “private activity bonds” which are not “qualified 501(c)(3) bonds”) during the current calendar year in which each such Lease is issued and hereby designates each Lease as a qualified tax-exempt obligation for purposes of Section 265(b) of the Internal Revenue Code of 1986, as amended. 10.i Packet Pg. 260 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E24 6 001.1145120.3 Section 6. This resolution shall take effect immediately upon its adoption and approval. ADOPTED AND APPROVED on this ________________, 2016. The undersigned Secretary/Clerk of the above-named Municipality hereby certifies and attests that the undersigned has access to the official records of the Governing Body of the Municipality, that the foregoing resolutions were duly adopted by said Governing Body of the Municipality at a meeting of said Governing Body and that such resolutions have not been amended or altered and are in full force and effect on the date stated below. LESSEE: City of San Luis Obispo ____________________________________________ [SEAL] Signature of Secretary/Clerk of Municipality Print Name: ___________________________________ Official Title:___________________________________ Date: _______________________________________ 10.i Packet Pg. 261 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E24 CERTIFICATE OF INCUMBENCY Lessee: City of San Luis Obispo Lease Schedule No.: 196140000 Dated: April 28, 2016 I, the undersigned Secretary/Clerk identified below, do hereby certify that I am the duly elected or appointed and acting Secretary/Clerk of the above Lessee (the “Lessee”), a political subdivision duly organized and existing under the laws of the State where Lessee is located, that I have the title stated below, and that, as of the date hereof, the individuals named below are the duly elected or appointed officers of the Lessee holding the offices set forth opposite their respective names. [NOTE: Use same titles as Authorized Representatives stated in Resolutions.] _________________________ Name __________________________ Title _________________________ Signature _________________________ Name __________________________ Title _________________________ Signature IN WITNESS WHEREOF, I have duly executed this certificate and affixed the seal of such Lessee as of the date set forth below. ____________________________________________ [SEAL] Signature of Secretary/Clerk of Lessee Print Name: __________________________________ Official Title:___________________________________ Date: ________________________________________ 10.i Packet Pg. 262 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E34 FORM OF OPINION OF COUNSEL (To Be Typed on Attorney’s Letterhead Stationary) Date: Lessee: City of San Luis Obispo Lessor: PNC Equipment Finance, LLC Re: Lease Schedule No. 196140000 dated April 28, 2016, together with its Master Lease-Purchase Agreement dated April 28, 2016, by and between the above-named Lessee and the above-named Lessor Gentlemen: I have acted as counsel to Lessee with respect to the Lease Schedule, the Master Lease-Purchase Agreement and all other agreements described above or related thereto (collectively, the “Agreements”) and various related matters, and in this capacity have reviewed a duplicate original or certified copy of the Agreements and such other documents as I have deemed necessary for the purposes of this opinion. Based upon the examination of such documents, it is my opinion that: 1. Lessee is a political subdivision of the State of California (the “State”) duly organized, existing and operating under the Constitution and laws of the State. 2. Lessee is authorized and has power under State law to enter into all of the Agreements, and to carry out its obligations thereunder and the transactions contemplated thereby. 3. The Agreements and all other documents related thereto have been duly authorized, approved, and executed by and on behalf of Lessee, and each of the Agreements is a valid and binding contract of Lessee enforceable in accordance with its terms, except to the extent limited by State and Federal law affecting creditor’s remedies and by bankruptcy, reorganization or other laws of general application relating to or affecting the enforcement of creditors’ rights. 4. The authorization, approval and execution of the Agreements and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all applicable Local, State and Federal laws (including open meeting laws and public bidding and property acquisition laws). 5. To the best of my knowledge, there is no litigation or proceeding pending before any court, administrative agency or governmental body, that challenges: the organization or existence of Lessee; the authority of its officers; the proper authorization; approval and execution of any of the Agreements or any documents relating thereto; the appropriation of monies to make payments under the Agreements for the current fiscal year; or the ability of Lessee otherwise to perform its obligations under the Agreements and the transactions contemplated thereby. 6. Lessee is a political subdivision of the State as referred to in Section 103 of the Internal Revenue Code of 1986, as amended, and the related regulations and rulings thereunder. Lessor, its Assignee and any of their assigns may rely upon this opinion. Very truly yours, Attorney 10.i Packet Pg. 263 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) I01 INSURANCE COVERAGE DISCLOSURE PNC Equipment Finance, LLC, LESSOR City of San Luis Obispo, LESSEE RE: INSURANCE COVERAGE REQUIREMENTS 1. In accordance with the Lease Schedule (“Schedule”) to the Master Lease-Purchase Agreement identified in the Lease Schedule (“Master Lease”), Lessee certifies that it has instructed the insurance agent named below (please fill in name, address, and telephone number): to issue: (check to indicate coverage) a. All Risk Physical Damage Insurance on the leased Equipment evidenced by a Certificate of Insurance and Long Form Loss Payable Clause naming PNC Equipment Finance, LLC and/or its assigns as Loss Payee. Coverage Required: Termination Value Specified b. Public Liability Insurance evidenced by a Certificate of Insurance naming PNC Equipment Finance, LLC and/or its assigns as an Additional Insured. Minimum Coverage Required: $1,000,000.00 per person $2,000,000.00 aggregate bodily injury liability $1,000,000.00 property damage liability Proof of insurance coverage will be provided to PNC Equipment Finance, LLC, 155 East Broad Street, B4-B230-05-7, Columbus, OH 43215, prior to the time that the property is delivered to Lessee. OR 2. Pursuant to the Master Lease, Lessee represents and warrants, in addition to other matters under the Agreement, that it is lawfully self-insured for: (check to indicate coverage) a. All risk, physical damage in the amount specified in 1(a) above. b. Public liability for not less than the amounts specified in 1(b) above. Lessee has attached a signed letter describing self-insurance. LESSEE: City of San Luis Obispo By: _________________________________ Title: ___________________________________ 10.i Packet Pg. 264 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) I01 INSURANCE INFORMATION Please provide the following information to your insurance company to help expedite receipt of the necessary coverage: ITEMS WHICH NEED TO BE REFLECTED ON INSURANCE CERTIFICATE: • PNC Equipment Finance, LLC must be named Loss Payee and Additional Insured • 30 Days Notice of Cancellation • Not Less than $2,000,000.00 limits on liability • Certificate must reflect a short equipment description • Certificate must reflect an expiration date Certificate Holder Information: PNC Equipment Finance, LLC, its successors and/or all assigns 155 East Broad Street, B4-B230-05-7 Columbus, OH 43215 Please send a FAX copy of certificate to Cheryl Kennedy at 1-800-678-0602. The original should be mailed to the same at: PNC Equipment Finance, LLC 155 East Broad Street, B4-B230-05-7 Columbus, OH 43215 Please call Cheryl Kennedy at 1-800-820-9041, ext. 4, if you have any questions. 10.i Packet Pg. 265 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E28 THREE PARTY AGREEMENT Dated as of April 28, 2016 “Lessee” means City of San Luis Obispo “Schedule” means Lease Schedule No. 196140000 Dated April 28, 2016, together with its Schedule A-1. Reference is made to the Lease Schedule (“Schedule”) and to the Master Lease-Purchase Agreement (“Master Lease”) identified in said Lease Schedule, described above between PNC Equipment Finance, LLC (“Lessor”) and the Lessee identified above which relates to Equipment described in Schedule A-1 to the Lease Schedule attached therein (“Equipment”) to be supplied by Pierce Manufacturing Inc. (“Supplier”). For good and valuable consideration, receipt of which is hereby acknowledged, Lessee, Lessor and Supplier hereby agree as follows: 1. Notwithstanding anything to the contrary in the Lease Schedule, Lessee hereby notifies Lessor that the Equipment has not yet been delivered to Lessee and the Equipment has not yet been accepted by Lessee for purposes of the Lease Schedule. Lessee agrees to execute and deliver to Lessor a Delivery and Acceptance Certificate in the form attached hereto as Exhibit A upon the circumstances set forth in said Certificate. 2. All parties hereto agree that the Purchase Price of the Equipment shall be as set forth below if said Purchase Price is paid on or before the Advance Payment Date set forth below: Purchase Price: Sales Tax: $869,806.17 $66,079.12 Vendor Discounts: $41,235.00 Advance Payment Date: April 28, 2016 3. Upon execution of the Lease Schedule and delivery of all documents relating thereto required by Lessor, Lessee agrees that it shall pay the Lessee Down Payment stated below and Lessor agrees that it shall pay the balance of the Purchase Price (the “Amount Financed”) stated below. Lessee agrees that the Lease Term and Lessee’s obligation to pay Rent Payments shall commence on the date set forth in the Lease Schedule notwithstanding the delivery of the Equipment at a later date. Lessee Down Payment: $0.00 Trade In: Amount Financed: $0.00 $1,141,468.09 4. (a) Supplier anticipates that it shall deliver the Equipment to Lessee by the Anticipated Delivery Date set forth below. Anticipated Delivery Date: May 28, 2017 (b) Supplier hereby agrees that it shall deliver the Equipment to Lessee no later than the Outside Delivery Date set forth below and that such Equipment shall comply with all specifications and requirements of Lessee and with the terms and conditions of any purchase order/purchase agreement relating thereto. Outside Delivery Date: July 28, 2017 5. If for any reason whatsoever Supplier fails to comply with its agreements set forth in subparagraph 4(b) of this Agreement by the Outside Delivery Date for any piece of Equipment (the “Delayed Equipment”), and the Lessee has not agreed to revise the Outside Delivery Date with respect to such 10.i Packet Pg. 266 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E28 Delayed Equipment, then Supplier hereby agrees as follows only for the Delayed Equipment: (a) On the first business day after the Outside Delivery Date, Supplier shall pay to Lessee the Lessee Down Payment for the Delayed Equipment plus interest at the Prime Rate plus one percent (1%) per annum from the Advance Payment Date to the date of such payment; (b) On the first business day after the Outside Delivery Date, Supplier shall pay to Lessor for the Delayed Equipment the Amount Financed plus interest at the Prime Rate plus one percent (1%) per annum from the Advance Payment Date to the date of such payment; and (c) “Prime Rate” means the prime rate of interest as published from time to time in the Wall Street Journal. If there is more than one piece of Equipment subject to the Lease, and some of the Equipment is delivered in accordance with subparagraph 4(b) of this Agreement, the payments owed pursuant to the Lease shall be modified to reflect only the obligations due on the Equipment that was delivered pursuant to subparagraph 4(b) of this Agreement. The new payment obligation will be determined based on the amount financed for the Equipment delivered to the Lessee, and based on the interest rate in effect as of the date of Lease commencement. 6. If Supplier makes the payments described in paragraph 5 above for the Delayed Equipment under the circumstances set forth above and if Lessee has otherwise paid and performed its obligations under the Lease Schedule as of such payment date for the Delayed Equipment, then Lessee and Lessor agree that the Lease Schedule shall terminate as of the date of such payments by Supplier as to the Delayed Equipment only. Lessee’s obligations shall continue unabated for the Equipment that was delivered pursuant to subparagraph 4(b) of this Agreement. 7. Supplier agrees that a Performance Bond will be issued which names the Supplier as Principal, the Lessee as Obligee and the Lessor as Additional Obligee. This Performance Bond will apply solely to the terms and conditions of the purchase order/purchase agreement, including related equipment specifications and warranties, as issued by the lessee and accepted by the Supplier. The “Contract Date” referred to in the Performance Bond shall be the date of the Three Party Agreement. Except as expressly set forth herein, the Lease Schedule and the terms and conditions of the purchase order/purchase agreement for the equipment remain unchanged and in full force and effect. 8. Except as expressly set forth herein, the Lease Schedule and terms and conditions of the purchase order/purchase agreement for the Equipment remain unchanged and in full force and effect. IN WITNESS WHEREOF, the duly authorized officers of the parties set forth below hereby execute and deliver this Agreement as of the date first written above. City of San Luis Obispo PNC Equipment Finance, LLC (“Lessee”) (“Lessor”) By: By: Title: Title: Pierce Manufacturing Inc. (“Supplier”) By: Title: 10.i Packet Pg. 267 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) E28 Exhibit A DELIVERY & ACCEPTANCE CERTIFICATE Lease Schedule No. 196140000 Reference is made to the above Lease Schedule (“Schedule”), which has been executed and delivered by the undersigned Lessee (“Lessee”) and PNC Equipment Finance, LLC (“Lessor”). This Certificate amends and supplements the terms and conditions of the Lease Schedule and is hereby made a part of the Lease Schedule. Unless otherwise defined herein, capitalized terms defined in the Master Lease-Purchase Agreement and the Lease Schedule shall have the same meaning when used herein; provided, that “Equipment” shall mean the Equipment described in the Schedule A-1 and in any attachment or exhibit to this Certificate. Notwithstanding anything to the contrary, expressed or implied, in the Lease Schedule or its Schedule A-1, Lessee agrees as follows: 1. ACCEPTANCE OF EQUIPMENT. As of the Acceptance Date stated below and as between Lessee and Lessor, Lessee hereby agrees that: (a) Lessee has received and inspected all Equipment; (b) all Equipment is in good working order and complies with all purchase orders, contracts and specifications; (c) Lessee accepts all Equipment for purposes of the Lease “as-is, where-is”; and (d) Lessee waives any right to revoke such acceptance. ACCEPTANCE DATE: 2. RENT PAYMENTS. Lessee hereby agrees that Lessee will pay the Rent Payments for the Equipment in the amounts and on the dates specified in Schedule A-1 to the Lease Schedule. City of San Luis Obispo (“Lessee”) By: __________________________________ Title: __________________________________ 10.i Packet Pg. 268 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) ESCROW RIDER Dated As of April 28, 2016 Lease Schedule No. 196140000 Dated April 28, 2016 MASTER LEASE-PURCHASE AGREEMENT DATED APRIL 28, 2016 LESSEE: CITY OF SAN LUIS OBISPO Reference is made to the above Lease Schedule (“Schedule”) to the Master Lease-Purchase Agreement identified in the Schedule (“Master Lease”) by and between PNC Equipment Finance, LLC (“Lessor”) and the above lessee (“Lessee”). As used herein, “Lease” shall mean the Schedule and the Master Lease, but only to the extent that the Master Lease related to the Schedule. This Addendum amends and modifies the terms and conditions of the Lease and is hereby made a part of the Lease. Unless otherwise defined herein, capitalized terms defined in the Master Lease shall have the same meaning when used herein. NOW, THEREFORE, as part of the valuable consideration to induce the execution of the Lease, Lessor and Lessee hereby agree to amend the Lease as follows: 1. “Escrow Agreement” means the Escrow Agreement relating to a Schedule, dated the Commencement Date under such Schedule and substantially in the form attached to this Master Lease, among Lessor, Lessee and the escrow agent therein identified, with respect to the Escrow Fund established and to be administered thereunder. “Escrow Fund” means the fund of that name established pursuant to an Escrow Agreement. 2. Lessee and Lessor together with a mutually acceptable escrow agent agree to enter into an escrow agreement (Escrow Agreement”) establishing a fund (“Equipment Acquisition Fund”) from which the Purchase Price of the Equipment will be paid. The terms and conditions of the Escrow Agreement shall be satisfactory in form and substance, to Lessor and Lessee. 3. In order to provide financing to pay the costs to acquire and install the Equipment (“Total Amount Financed”) as described in a Schedule, Lessor and Lessee hereby agree to execute and deliver an Escrow Agreement relating to such Schedule on the date on which the Funding Conditions for such Schedule are satisfied as provided in Section 5.3. If Lessee signs and delivers a Schedule and an Escrow Agreement and if all Funding Conditions have been satisfied in full, then Lessor will deposit or cause to be deposited into an Escrow Fund under the related Escrow Agreement an amount (which may include estimated investment earnings thereon) equal to the Purchase Price for the Equipment to be financed under the related Schedule. 4. Lessee shall, at its sole expense, arrange for the transportation, delivery and installation of all Equipment to the location specified in the Schedule (“Location”) by Equipment suppliers (“Suppliers”) selected by Lessee. Lessee shall accept Equipment for purposes of the related Lease as soon as it has been delivered and is operational. Lessee shall evidence its acceptance of any Equipment by signing and delivering to Lessor a Certificate of Acceptance in the form and manner required by the applicable Escrow Agreement. 10.i Packet Pg. 269 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) - 2 - 5. If a Non-Appropriation Event or an Event of Default occurs prior to Lessee’s acceptance of all the Equipment under the related Schedule, the amount then on deposit in the Escrow Fund shall be applied to prepay the unpaid principal component of the Rent Payments in whole on the first business day of the month next succeeding the occurrence of either such Event plus accrued interest to the prepayment date; provided, however, that the amount to be prepaid by Lessee pursuant to this Section 5 shall first be paid from moneys in the related Escrow Fund and then from Legally Available Funds and other moneys available for such purpose as a result of the exercise by Lessor of its rights and remedies under the related Schedule. Any funds on deposit in the Escrow Fund on the prepayment date described in this Section 5 in excess of the unpaid principal component of the Rent Payments to be prepaid plus accrued interest thereon to the prepayment date shall be paid promptly to Lessee. 6. To the extent that Lessee has not accepted items of Equipment before the eighteen-month anniversary of the Commencement Date identified on the related Schedule, the amount then on deposit in the related Escrow Fund shall be applied to prepay the unpaid principal component of the Rent Payments in part, in inverse order of Rent Payments, on the first business day of the next month plus accrued interest to the prepayment date; provided, however, that the amount to be prepaid by Lessee pursuant to this Section 6 shall first be paid from moneys in the related Escrow Fund and then from Legally Available Funds. Notwithstanding any such partial prepayment, the related Schedule shall remain in full force and effect with respect to the portion of the Equipment accepted by Lessee during such eighteen-month period, and the portion of the principal component of Rent Payments remaining unpaid after such prepayment plus accrued interest thereon shall remain payable in accordance with the terms of the related Schedule. Upon Lessor’s request, Lessee shall execute an amendment to the related Payment Schedule that reflects the change to the Rent Payments as a result of such partial prepayment. 7. As collateral security for Lessee’s obligations to pay all Rent Payments and all other amounts due and payable under each Lease and to perform and observe all covenants, agreements and conditions (direct or indirect, absolute or contingent, due or to become due or existing or hereafter arising) of Lessee under such Lease, Lessee hereby grants to Lessor a first priority, exclusive security interest in any and all of the Equipment (now existing or hereafter acquired) under each Lease, moneys and investments held from time to time the Escrow Fund under each Escrow Agreement and any and all proceeds of any of the foregoing. Lessee agrees to execute and deliver to Lessor all necessary documents to evidence and perfect such security interest, including, without limitation, Uniform Commercial Code (UCC) financing statements and any amendments thereto and certificates of title or certificates of origin (or applications thereof) noting Lessor’s interest thereon. 8. The Lease Term of the Lease shall commence on the earlier of the date specified in the Payment Schedule to the Lease or the date of Lessor’s deposit of funds into the Equipment Acquisition Fund. Notwithstanding the statements regarding delivery and acceptance of the Equipment in the Schedule, the parties acknowledge that the Equipment will be delivered or installed as provided in the Escrow Agreement. 9. The delivery of documents and the satisfaction of any other conditions required by the Escrow Agreement or this Addendum shall be additional Funding Conditions for the Lease. 10. Upon Lessee’s execution of the Escrow Agreement, Lessee hereby represents and warrants to Lessor that: 10.i Packet Pg. 270 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) - 3 - (a) Lessee has full power, authority and legal right to execute and deliver the Escrow Agreement and to perform its obligations under the Escrow Agreement, and all such actions have been duly authorized by appropriate findings and actions of Lessee’s governing body; (b) the Escrow Agreement has been duly executed and delivered by Lessee and constitutes a legal, valid and binding obligations of Lessee, enforceable in accordance with its terms; and (c) the Escrow Agreement is authorized under, and the authorization, execution and delivery of the Escrow Agreement complies with, all applicable federal, state and local laws and regulations (including, but not limited to, all open meeting, public bidding and public investment (laws) and all applicable judgments and court orders. 11. The opinion of Lessee’s legal counsel will include statements to the same effect as the representations of Lessee in paragraph 10 above. 12. It shall be an additional event of default under the Lease if lessee fails to pay or perform any of its obligations under the Escrow Agreement or this Addendum or if any of the representations of Lessee in the Escrow Agreement or this Addendum prove to be false, misleading or erroneous in any material respect. Except as expressly amended by this Rider and other modifications signed by Lessor, the Lease remains unchanged and in full force and effect. IN WITNESS WHEREOR, the parties hereto have executed this Rider as of the date first referenced above. City of San Luis Obispo PNC Equipment Finance, LLC (Lessee) (Lessor) By: By TITLE: TITLE: 10.i Packet Pg. 271 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) - 4 - ESCROW AGREEMENT THIS ESCROW AGREEMENT (“Escrow Agreement”) is made as of April 28, 2016 by and among PNC EQUIPMENT FINANCE, LLC (“Lessor”), City of San Luis Obispo (“Lessee”) and U.S. BANK NATIONAL ASSOCIATION, as escrow agent (“Escrow Agent”). Lessor and Lessee have heretofore entered into that certain Master Lease-Purchase Agreement dated as of April 28, 2016 (the “Master Lease”) and a Lease Schedule 196140000 thereto dated April 28, 2016 (the “Schedule” and, together with the terms and conditions of the Master Lease incorporated therein, the “Lease”). The Lease contemplates that certain equipment described therein (the “Equipment”) is to be acquired from the vendor(s) or manufacturer(s) thereof. After acceptance of the Equipment by Lessee, the Equipment is to be leased by Lessor to Lessee pursuant to the terms of the Lease. The Lease further contemplates that Lessor will deposit an amount equal to the anticipated aggregate acquisition cost of the Equipment (the “Total Amount Financed”), being $246,817.80, with Escrow Agent to be held in escrow and applied on the express terms set forth herein. Such deposit, together with all interest and other additions received with respect thereto (hereinafter the “Escrow Fund”) is to be applied to pay the vendor(s) or manufacturer(s) of the Equipment (the “Vendor”) its invoice cost (a portion of which may, if required, be paid prior to final acceptance of the Equipment by Lessee); and, if applicable, to reimburse Lessee for progress payments already made by it to the Vendor of the Equipment. The parties desire to set forth the terms on which the Escrow Fund is to be created and to establish the rights and responsibilities of the parties hereto. NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) in hand paid, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. (a) Escrow Agent hereby agrees to serve as escrow agent upon the terms and conditions set forth herein. (b) The moneys and investments held in the Escrow Fund are irrevocably held in trust for the benefit of Lessee and Lessor, and such moneys, together with any income or interest earned thereon, shall be expended only as provided in this Escrow Agreement, and shall not be subject to levy or attachment or lien by or for the benefit of any creditor of either Lessee or Lessor. Lessor, Lessee and Escrow Agent intend that the Escrow Fund constitute an escrow account in which Lessee has no legal or equitable right, title or interest until satisfaction in full of all conditions contained herein for the disbursement of funds by the Escrow Agent therefrom. However, if the parties’ intention that Lessee shall have no legal or equitable right, title or interest until all conditions for disbursement are satisfied in full is not respected in any legal proceeding, the parties hereto intend that Lessor have a security interest in the Escrow Fund, and such security interest is hereby granted by Lessee to secure payment of all sums due to Lessor under the Lease. For such purpose, Escrow Agent hereby agrees to act as agent for Lessor in connection with the perfection of such security interest and agrees to note, or cause to be noted, on all books and records relating to the Escrow Fund, the Lessor’s interest therein. 2. On such day as is determined to the mutual satisfaction of the parties (the “Closing Date”), Lessor shall deposit with Escrow Agent cash in the amount of the Purchase Price, to be held in escrow by Escrow Agent on the express terms and conditions set forth herein. 10.i Packet Pg. 272 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) - 5 - On the Closing Date, Escrow Agent agrees to accept the deposit of the Purchase Price by Lessor, and further agrees to hold the amount so deposited together with all interest and other additions received with respect thereto, as the Escrow Fund hereunder, in escrow on the express terms and conditions set forth herein. 3. Escrow Agent shall at all times segregate the Escrow Fund into an account maintained for that express purpose, which shall be clearly identified on the books and records of Escrow Agent as being held in its capacity as Escrow Agent. Securities and other negotiable instruments comprising the Escrow Fund from time to time shall be held or registered in the name of Escrow Agent (or its nominee). The Escrow Fund shall not, to the extent permitted by applicable law, be subject to levy or attachment or lien by or for the benefit of any creditor of any of the parties hereto (except with respect to the security interest therein held by Lessor). 4. The cash comprising the Escrow Fund from time to time shall be invested and reinvested by Escrow Agent in one or more investments as directed by Lessee in Exhibit 1. Escrow Agent will use due diligence to collect amounts payable under a check or other instrument for the payment of money comprising the Escrow Fund and shall promptly notify Lessee and Lessor in the event of dishonor of payment under any such check or other instruments.. Interest or other amounts earned and received by Escrow Agent with respect to the Escrow Fund shall be deposited in and comprise a part of the Escrow Fund. 5. Upon request by Lessee and Lessor, Escrow Agent shall send monthly statements of account to Lessee and Lessor, which statements shall set forth all withdrawals from and interest earnings on the Escrow Fund as well as the investments in which the Escrow Fund is invested. 6. Escrow Agent shall take the following actions with respect to the Escrow Fund: (a) Upon Escrow Agent’s acceptance of the deposit of the Purchase Price, an amount equal to Escrow Agent’s set-up fee, as set forth on Exhibit 2 hereto, shall be disbursed from the Escrow Fund to Escrow Agent in payment of such fee. (b) From time to time, Escrow Agent shall pay to the Vendor of the Equipment payments then due and payable with respect thereto upon receipt of duly executed Requisition Request and Certificate of Acceptance form attached as Exhibit 3 hereto, subject to Lessor’s prior written approval of each such Requisition Request and Certificate of Acceptance. (c) If an Event of Default or Non-Appropriation Event occurs under the Lease prior to the Lessee’s acceptance of all the Equipment or to the extent that funds have not been disbursed from the Escrow Fund within the eighteen-month period identified in the Lease, funds then on deposit in the Escrow Fund shall be applied to the prepayment of Rent Payments under the Lease as instructed by Lessor. (d) Upon receipt by Escrow Agent of written notice from Lessor that the purchase price of the Equipment has been paid in full, Escrow Agent shall apply the then remaining Escrow Fund, first, to all outstanding fees and expenses incurred by Escrow Agent in connection herewith as evidenced by its statement forwarded to Lessor and Lessee, and, second, to Lessor for application against the interest component of Rent Payments under the Lease as provided therein, unless otherwise agreed by Lessor. 7. The fees and expenses, including any legal fees, of Escrow Agent incurred in connection herewith shall be the responsibility of Lessee. The basic fees and expenses of Escrow Agent shall be as set forth on Exhibit 2 hereto and Escrow Agent is hereby authorized to deduct such fees and expenses from the Escrow Fund as and when the same are incurred without any further authorization from Lessee or Lessor. Escrow Agent may employ legal counsel 10.i Packet Pg. 273 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) - 6 - and other experts as it deems necessary for advice in connection with its obligations hereunder. Escrow Agent waives any claim against Lessor with respect to compensation hereunder. 8. Escrow Agent shall have no liability for acting upon any written instruction presented by Lessor in connection with this Escrow Agreement, which Escrow Agent in good faith believes to be genuine. Furthermore, Escrow Agent shall not be liable for any act or omission in connection with this Escrow Agreement except for its own negligence, willful misconduct or bad faith. Escrow Agent shall not be liable for any loss or diminution in value of the Escrow Fund as a result of the investments made by Escrow Agent. 9. Escrow Agent may resign at any time by giving thirty (30) days’ prior written notice to Lessor and Lessee. Lessor may at any time remove Escrow Agent as Escrow Agent under this Escrow Agreement upon written notice. Such removal or resignation shall be effective on the date set forth in the applicable notice. Upon the effective date of resignation or removal, Escrow Agent will transfer the Escrow Fund to the successor Escrow Agent selected by Lessor. 10. This Escrow Agreement and the escrow established hereunder shall terminate upon receipt by Escrow Agent of the written notice from Lessor specified in Section 6(c) or Section 6(d) hereof. 11. In the event of any disagreement between the undersigned or any of them, and/or any other person, resulting in adverse claims and demands being made in connection with or for any moneys involved herein or affected hereby, Escrow Agent shall be entitled at its option to refuse to comply with any such claim or demand, so long as such disagreement shall continue, and in so refusing Escrow Agent may refrain from making any delivery or other disposition of any moneys involved herein or affected hereby and in so doing Escrow Agent shall not be or become liable to the undersigned or any of them or to any person or party for its failure or refusal to comply with such conflicting or adverse demands, and Escrow Agent shall be entitled to continue so to refrain and refuse so to act until: (a) the rights of the adverse claimants have been finally adjudicated in a court assuming and having jurisdiction of the parties and the moneys involved herein or affected hereby; or (b) all differences shall have been adjusted by agreement and Escrow Agent shall have been notified thereof in writing signed by all of the persons interested. 12. All notices (excluding billings and communications in the ordinary course of business) hereunder shall be in writing, and shall be sufficiently given and served upon the other party if delivered (a) personally, (b) by United States registered or certified mail, return receipt requested, postage prepaid, (c) by an overnight delivery by a service such as Federal Express or Express Mail from which written confirmation of overnight delivery is available, or (d) by facsimile with a confirmation copy by regular United States mail, postage prepaid, addressed to the other party at its respective address stated below the signature of such party or at such other address as such party shall from time to time designate in writing to the other party, and shall be effective from the date of mailing. 13. This Escrow Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective successors and assigns. No rights or obligations of Escrow Agent under this Escrow Agreement may be assigned without the prior written consent of Lessor. 14. This Escrow Agreement shall be governed by and construed in accordance with the California laws of the state of California This Escrow Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof, and no waiver, consent, modification or change of terms hereof shall bind any party unless in writing signed by all parties. 10.i Packet Pg. 274 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) - 7 - IN WITNESS W HEREOF, the parties hereto have caused this Escrow Agreement to be duly executed as of the day and year first above set forth. PNC EQUIPMENT FINANCE, LLC, as Lessor By Name: _________________________________ Title: __________________________________ Address: 155 E. Broad St., 5th Floor Columbus, OH 43215 City of San Luis Obispo , as Lessee By ______________________________________ Name: _________________________________ Title: __________________________________ Attention: Finance Director Address: 990 Palm Street San Luis Obispo, CA 93401 U.S BANK NATIONAL ASSOCIATION, as Escrow Agent By Name: _________________________________ Title: __________________________________ Address: 10 West Broad Street, 12th Floor Columbus, OH 43215 10.i Packet Pg. 275 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) EXHIBIT 1 INVESTMENT DIRECTION LETTER U.S. Bank National Association 10 W. Broad St. CN OH TT4 Columbus, OH 43215 Re: Escrow Agreement dated as of April 28, 2016, among PNC Equipment Finance, LLC as Lessor, City of San Luis Obispo as Lessee, and U.S. Bank National Association, as Escrow Agent Ladies and Gentlemen: Pursuant to the above-referenced Escrow Agreement, $246,817.80 will be deposited in escrow with you on or about April 28, 216. Such funds shall be invested in one or more of the following qualified investments in the amounts indicated: AMOUNT OF PLEASE CHECK DESIRED QUALIFIED INVESTMENTS: INVESTMENT 1. Direct general obligations of the United States of America; $ __________ 2. Obligations – the timely payment of the principal of and interest on which is fully and unconditionally guaranteed by the United States of America; $ 3. General obligations of the agencies and instrumentalities of the United States of America acceptable to Lessor; $ 4. Money market funds whose investment parameters target investments in securities as described above; $ IF NONE OF THE ABOVE BOXES ARE CHECKED, INVESTMENT SHALL BE MADE IN MONEY MARKET FUNDS AS DESCRIBED IN THE FOURTH CATEGORY ABOVE, UNTIL LESSEE DIRECTS OTHERWISE. Very truly yours, CITY OF SAN LUIS OBISPO, AS LESSEE By: _______________________________________ Name: _________________________________ Title: __________________________________ 10.i Packet Pg. 276 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) EXHIBIT 2 ESCROW AGENT FEES AND EXPENSES SET-UP FEES $250.00 payable from the Escrow Fund upon acceptance of escrow deposit. EXPENSES Any and all out-of-pocket expenses incurred by Escrow Agent will be the responsibility of Lessee and paid from the Escrow Fund. 10.i Packet Pg. 277 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) 155 E. Broad St., B4-B230-05-7, Columbus, Ohio 43215 • Telephone (800) 811-4796 Please Retain for Future Reference Page No. 1 INVOICE # 04282016 Bill To: City of San Luis Obispo 2160 Santa Barbara Ave San Luis Obispo, CA 93401 Remit To: PNC Equipment Finance, LLC 155 E. Broad St., B4-B230-05-7 Columbus, OH 43215 INVOICE Lease No. 196140000 Initial Charges: Escrow Payment $250.00 PAY THIS AMOUNT $250.00 INVOICE DATE 3/28/2016 DUE DATE 4/28/2016 10.i Packet Pg. 278 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) F-2004.1-1 MMDA Eff: 4/30/04 U.S. BANK NATIONAL ASSOCIATION MONEY MARKET ACCOUNT DESCRIPTION AND TERMS The U.S. Bank Money Market account is an U.S. Bank National Association (“U.S. Bank”) interest-bearing time deposit account designed to meet the needs of U.S. Bank’s Corporate Trust Services Escrow Group and other Corporate Trust customers of U.S. Bank. Selection of this investment includes authorization to place funds on deposit with U.S. Bank. U.S. Bank uses the daily balance method to calculate interest on this account (actual/365 or 366) by applying a daily periodic rate to the principal balance in the account each day. Interest is accrued daily and credited monthly to the account. Interest rates are determined at U.S. Bank’s discretion, and may be tiered based on customer deposit amount. The owner of the account is U.S. Bank as Agent for its trust customers. U.S. Bank’s trust department performs all account deposits and withdrawals. The deposit account is insured by the Federal Deposit Insurance Corporation up to $250,000. AUTOMATIC AUTHORIZATION In the absence of specific written direction to the contrary, U.S. Bank is hereby directed to invest and reinvest proceeds and other available moneys in the U.S. Bank Money Market Account. City of San Luis Obispo ___________________________________ Company Name Signature of Authorized Directing Party ____________________________________ Trust Account Number – includes existing Title / Date and future sub-accounts unless otherwise directed 10.i Packet Pg. 279 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) EXHIBIT 3 REQUISITION REQUEST AND CERTIFICATE OF ACCEPTANCE NO._______ (to be submitted with each requisition request for payment to the vendor) -or- ____ (√) FINAL REQUISITION REQUEST AND CERTIFICATE OF ACCEPTANCE (to be submitted with the final requisition request upon acceptance of the Equipment) The Escrow Agent is hereby requested to pay from the Escrow Fund established and maintained under that certain Escrow Agreement dated as of April 28, 2016 (the “Escrow Agreement”) by and among PNC Equipment Finance, LLC (the “Lessor”), City of San Luis Obispo (the “Lessee”), and U.S. Bank National Association (the “Escrow Agent”), the amount set forth below to the named payee(s). The amount shown is due and payable under a purchase order or contract (or has been paid by and not previously reimbursed to Lessee) with respect to equipment being leased under that certain Master Lease-Purchase Agreement dated as of April 28, 2016 (the “Master Lease”) and Lease Schedule 196140000 thereto dated April 28, 2016 (the “Schedule” and, together with the terms and conditions of the Master Lease incorporated therein, the “Lease”), by and between the Lessor and the Lessee, and has not formed the basis of any prior requisition request. PAYEE AMOUNT Total requisition amount $______________ The undersigned, as Lessee under the Lease hereby certifies: 1. The items of the Equipment, as such term is defined in the Lease, fully and accurately described on the Equipment List attached hereto have been delivered and installed at the location(s) set forth therein. 2. A present need exists for the Equipment which need is not temporary or expected to diminish in the near future. The Equipment is essential to and will be used by the Lessee only for the purpose of performing one or more governmental functions of Lessee consistent with the permissible scope of Lessee’s authority. 3. The estimated useful life of the Equipment based upon the manufacturer’s representations and the Lessee’s projected needs is not less than the Lease Term of lease with respect to the Equipment. 4. The Lessee has conducted such inspection and/or testing of the Equipment as it deems necessary and appropriate and hereby acknowledges that it accepts the Equipment for all purposes as of the date of this Certificate. 5. The Equipment is covered by insurance in the types and amounts required by the Lease. 6. No Event of Default or Non-Appropriation Event, as each such term is defined in the Lease, and no event which with the giving of notice or lapse of time, or both, would become such an Event of Default or Non-Appropriation Event has occurred and is continuing on the date hereof. 10.i Packet Pg. 280 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) 7. Sufficient funds have been appropriated by the Lessee for the payment of all Rent Payments due under the Lease during Lessee’s current fiscal year. 8. Based on the foregoing, Lessor is hereby authorized and directed to fund the acquisition of the Equipment set forth on the Equipment List by paying, or causing to be paid, the manufacturer(s)/vendor(s) the amounts set forth on the attached invoices. 9. The following documents are attached hereto and made a part hereof: (a) Original Invoice(s); (b) Copies of Certificate(s) of Origin designating Lessor as lienholder if any part of the Equipment consists of motor vehicles, and evidence of filing; and (c) Requisition for Payment 10. If this is the final acceptance of Equipment, then as of the Acceptance Date stated below and as between the Lessee and the Lessor, the Lessee hereby agrees that: (a) the Lessee has received and inspected all of the Equipment described in the Lease; (b) all Equipment is in good working order and complies with all purchase orders, contracts and specification; (c) the Lessee accepts all Equipment for purposes of the Lease “as-is, where-is”; and (d) the Lessee waives any right to revoke such acceptance. If Lessee paid an invoice prior to the commencement date of the Lease and is requesting reimbursement for such payment, also attach a copy of evidence of such payment together with a copy of Lessee’s Declaration of Official Intent and other evidence that Lessee has satisfied the requirements for reimbursement set forth in Treas. Reg. §1.150-2. Acceptance Date: __________________ City of San Luis Obispo , as Lessee By Name: _________________________________ Title: ___________________________________ Date: ______________________________________ PNC Equipment Finance, LLC, as Lessor By: Title: Date: 10.i Packet Pg. 281 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) PNC Equipment Finance, LLC INFORMATION REQUEST LESSEE NAME: City of San Luis Obispo FEDERAL TAX I.D. # ___________________________________________ BILLING ADDRESS: ________________________________________________________________________ Billing Contact ________________________________________________________________________ Street Address or Post Office Box ________________________________________________________________________ City, State and Zip _____________________________________________________________________________________ Phone Number Fax Number ____________________________________________ Email Address PHYSICAL ADDRESS (IF DIFFERENT): ________________________________________________________________________ Street Address or Post Office Box ________________________________________________________________________ City, State and Zip Require Board Approval for Payments? _______ Yes _______ No Board Meeting Date? ___________________ Require signed vouchers for payments? _______ Yes _______ No We typically mail our invoices 30 days in advance. Taking into account a 7-day mail period, do you foresee any problem that would prevent the payment from being received on or before the due date? ______ Yes _______ No Please list any special instructions below: ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ 10.i Packet Pg. 282 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) Form 8038-G (Rev. September 2011) Department of the Treasury Internal Revenue Service Information Return for Tax-Exempt Governmental Obligations ▶ Under Internal Revenue Code section 149(e) ▶ See separate instructions. Caution: If the issue price is under $100,000, use Form 8038-GC. OMB No. 1545-0720 Part I Reporting Authority If Amended Return, check here ▶ 1 Issuer’s name 2 Issuer’s employer identification number (EIN) 3a Name of person (other than issuer) with whom the IRS may communicate about this return (see instructions)3b Telephone number of other person shown on 3a 4 Number and street (or P.O. box if mail is not delivered to street address)Room/suite 5 Report number (For IRS Use Only) 3 6 City, town, or post office, state, and ZIP code 7 Date of issue 8 Name of issue 9 CUSIP number 10a Name and title of officer or other employee of the issuer whom the IRS may call for more information (see instructions) 10b Telephone number of officer or other employee shown on 10a Part II Type of Issue (enter the issue price). See the instructions and attach schedule. 11 Education ..............................11 12 Health and hospital ..........................12 13 Transportation ............................13 14 Public safety .............................14 15 Environment (including sewage bonds) ....................15 16 Housing ..............................16 17 Utilities ..............................17 18 Other. Describe ▶18 19 If obligations are TANs or RANs, check only box 19a ............. ▶ If obligations are BANs, check only box 19b ................ ▶ 20 If obligations are in the form of a lease or installment sale, check box ........ ▶ Part III Description of Obligations. Complete for the entire issue for which this form is being filed. 21 (a) Final maturity date (b) Issue price (c) Stated redemption price at maturity (d) Weighted average maturity (e) Yield $ $ years % Part IV Uses of Proceeds of Bond Issue (including underwriters’ discount) 22 Proceeds used for accrued interest .....................22 23 Issue price of entire issue (enter amount from line 21, column (b)) ...........23 24 Proceeds used for bond issuance costs (including underwriters’ discount) ..24 25 Proceeds used for credit enhancement ............25 26 Proceeds allocated to reasonably required reserve or replacement fund .26 27 Proceeds used to currently refund prior issues .........27 28 Proceeds used to advance refund prior issues .........28 29 Total (add lines 24 through 28) .......................29 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) ...30 Part V Description of Refunded Bonds. Complete this part only for refunding bonds. 31 Enter the remaining weighted average maturity of the bonds to be currently refunded .... ▶years 32 Enter the remaining weighted average maturity of the bonds to be advance refunded .... ▶years 33 Enter the last date on which the refunded bonds will be called (MM/DD/YYYY) ...... ▶ 34 Enter the date(s) the refunded bonds were issued ▶ (MM/DD/YYYY) For Paperwork Reduction Act Notice, see separate instructions.Cat. No. 63773S Form 8038-G (Rev. 9-2011) 10.i Packet Pg. 283 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) Form 8038-G (Rev. 9-2011)Page 2 Part VI Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) ....35 36 a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIC) (see instructions) .........................36a b Enter the final maturity date of the GIC ▶ c Enter the name of the GIC provider ▶ 37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units ........................37 38 a If this issue is a loan made from the proceeds of another tax-exempt issue, check box ▶and enter the following information: b Enter the date of the master pool obligation ▶ c Enter the EIN of the issuer of the master pool obligation ▶ d Enter the name of the issuer of the master pool obligation ▶ 39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box .... ▶ 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box ............. ▶ 41 a If the issuer has identified a hedge, check here ▶and enter the following information: b Name of hedge provider ▶ c Type of hedge ▶ d Term of hedge ▶ 42 If the issuer has superintegrated the hedge, check box ..................... ▶ 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations (see instructions), check box ........ ▶ 44 If the issuer has established written procedures to monitor the requirements of section 148, check box ..... ▶ 45a If some portion of the proceeds was used to reimburse expenditures, check here ▶and enter the amount of reimbursement ......... ▶ b Enter the date the official intent was adopted ▶ Signature and Consent Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that I consent to the IRS’s disclosure of the issuer’s return information, as necessary to process this return, to the person that I have authorized above.▲Signature of issuer’s authorized representative Date ▲Type or print name and title Paid Preparer Use Only Print/Type preparer’s name Preparer's signature Date Check if self-employed PTIN Firm’s name ▶ Firm's address ▶ Firm's EIN ▶ Phone no. Form 8038-G (Rev. 9-2011) 10.i Packet Pg. 284 Attachment: i - Master lease agreement with PNC Equipment Finance (1300 : Fleet Replacement Acceleration) R ______ RESOLUTION NO. _____ (2016 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE LEASE PURCHASE OF A FIRE ENGINE AND A STREET SWEEPER FROM PNC EQUIPMENT FINANCE, LLC AND APPROVING THE FINAL FORM OF FINANCING DOCUMENTS AND OFFICIAL ACTIONS WHEREAS, the City of San Luis Obispo (the “City”) is a political subdivision of the State of California and is duly organized and exist ing pursuant to the Constitution and laws of the State; and WHEREAS, the City of San Luis Obispo (the “City”) maintains fire protection and street maintenance services and which includes rolling stock equipment which must be replaced from time to time. WHEREAS, pursuant to applicable law, the City of San Luis Obispo may acquire, dispose of and encumber real and personal property, including, without limitation, rights and interest in property, leases and easements necessary to the functions or operations of the city. WHEREAS, the City Council has considered a Lease Purchase Financing proposal offered by PNC Equipment Finance, LLC and desires to authorize the execution of the lease in the amount of $1,141,468.09. WHEREAS, the final form of the legal documentation relating to the financing has been prepared and the City Council wishes at this time to approve the final financing plan and the final form of such legal documentation NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows/or that (whatever action is needed): SECTION 1. Approval of Lease Purchase Financing Proposal. The City Council hereby approves the Lease Purchase of a new 2016 Pierce Arrow XT PUC Quint Aerial Fire Apparatus in the not to exceed amount of $894,650.29 and a new 2016 TYMCO Model 600 Regenerative Air Street Sweeper Truck in the not to exceed amount of $246,817.80 from PNC Equipment Finance, LLC in accordance with the Lender Financing Proposal in the form on file with the City Clerk. SECTION 2. The City’s obligations under the Lease shall be subject to annual appropriation or renewal by the City Council as set forth in the Lease and the Municipality’s obligations under the Lease shall not constitute general obligations of the Municipality or indebtedness under the Constitution or laws of the State. SECTION 3. Master Lease Purchase Agreement. The City Council hereby approves the Master Lease Purchase Agreement relating to the financing of the fire engine, between the City and PNC Equipment Finance, LLC in the form thereof on file with the City Clerk together with 10.j Packet Pg. 285 Attachment: j - Resolution (1300 : Fleet Replacement Acceleration) Resolution No. _____ (2016 Series) Page 2 R ______ any changes therein or additions thereto deemed advisable by an Authorized Officer; provided that the execution thereof by an Authorized Officer shall be conclusive evidence of the approval of any such changes or additions. An Authorized Officer is hereby authorized and directed for and in the name and on behalf of the City to execute, and the City Clerk is hereby authorized and directed to attest, the final form of the Installment Sale Agreement. SECTION 4. Official Actions. The Mayor, the City Manager, the Director of Finance and Information Technology, the City Clerk and all other officers of the City are each authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they or any of them deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. Whenever in this Resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. SECTION 5. As to the Lease Agreement, the City reasonably anticipates to issue not more than $10,000,000 of tax-exempt obligations (other than “private activity bonds” which are not “qualified 501(c)(3) bonds”) during the current calendar year in which the Lease is issued and hereby designates this Lease as a qualified tax -exempt obligation for purposes of Section 265(b) of the Internal Revenue Code of 1986, as amended. SECTION 6. Effective Date. This Resolution shall take effect immediately upon its passage and adoption. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2016. ____________________________________ Mayor Jan Marx 10.j Packet Pg. 286 Attachment: j - Resolution (1300 : Fleet Replacement Acceleration) Resolution No. _____ (2016 Series) Page 3 R ______ ATTEST: ____________________________________ Lee Price, MMC Interim 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 ______________, _________. ______________________________ Lee Price, MMC Interim City Clerk 10.j Packet Pg. 287 Attachment: j - Resolution (1300 : Fleet Replacement Acceleration) Page intentionally left blank. Meeting Date: 4/19/2016 FROM: Derek Johnson, Assistant City Manager/Interim Finance and IT Director Prepared By: Marjorie Hernandez, Supervising Accounting Assistant SUBJECT: REQUEST FOR PROPOSALS FOR BUSINESS LICENSE COMPLIANCE SERVICES RECOMMENDATION Authorize the issuance of a Request for Proposal for Business License Compliance Services and authorize the City Manager to enter into an agreement not to exceed $32,0 00 for 2015-2016 and $30,000 for 2016-2017. DISCUSSION The 2015-2017 Financial Plan included funding to obtain professional services from an experienced company that is capable of identifying unlicensed businesses within the community and bringing them into compliance with the City’s business license ordinance. Prior notification to businesses regarding this effort will be provided. . $32,000 was appropriated in the budget for the 2015-2016 Fiscal Year and $30,000 for the 2016-2017 Fiscal Year. Request for Proposals (RFP) for consultant services in excess of $50,000 must be authorized by the City Council. The City’s business community expects for everyone to operate on a level playing field. This includes the assumption that a properly licensed and permitted business will be competing against a similarly permitted and licensed business. When a new business does not obtain the proper licensing or does not pay the taxes required of their existing license, both a perceived and actual imbalance between businesses occurs. The intent of this request is to ensure that all businesses are educated on the need to obtain and maintain a business license and that all businesses pay the appropriate amount of taxes to the city. FISCAL IMPACT The 2015-17 Financial Plan provides funding for business license compliance services to increase business license compliance of businesses operating and located within the City limits of San Luis Obispo. There will also be a net increase in business license tax revenues after offsetting the cost of providing this service. ALTERNATIVES The City Council could not authorize the request for proposal. This is not recommended as this was a budgeted expenditure with the goal of increasing business license compliance. Greater 11 Packet Pg. 288 business license compliance will be fairer to those that comply with the requirements and will generate more revenue for City services. 11 Packet Pg. 289 The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities. Telecommunications Device for the Deaf (805) 781-7410. Notice Requesting Proposals for Business License Compliance Services The City of San Luis Obispo is requesting proposals for business license compliance services pursuant to Specification No. 91449. All proposals must be received by the Department of Finance and Information Technology Division by [time, date] when they will be opened publicly in the City Hall Council Chambers, 990 Palm Street, San Luis Obispo, CA 93401. Proposals received after said time will not be considered. To guard against premature opening, each proposal shall be submitted to the Department of Finance and Information Technology in a sealed envelope plainly marked with the proposal title, specification number, proposer name, and time and date of the proposal opening. Proposals shall be submitted using the forms provided in the specification package. Specification packages and additional information may be obtained on the City of San Luis Obispo's website http://www.slocity.org/finance/bids.asp or by contacting Marjorie Hernandez at (805) 781-7436. 11.a Packet Pg. 290 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) Specification No. 91449 TABLE OF CONTENTS A. Description of Work 1 B. General Terms and Conditions 3 Proposal Requirements Contract Award and Execution Contract Performance C. Special Terms and Conditions 6 Contract Term Proposal Content Proposal Evaluation and Selection Proposal Review and Award Schedule Start and Completion of Work Accuracy of Specifications D. Agreement 11 E. Insurance Requirements 13 F. Proposal Submittal Forms 15 Proposal Submittal Summary References 11.a Packet Pg. 291 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -1- Section A DESCRIPTION OF WORK OVERVIEW The City is requesting proposals for business license compliance services on a one-time, limited term basis. The City operates as a Charter City and has a council-manager form of government. The City is located on the Central Coast of California, has a population of approximately 45,000 and serves as the County seat. Currently the City has approximately 8,000 business license holders, including 1,500 which are located outside the City. The City is home to a mix of businesses operating from fixed commercial locations, from home-based operations, from mobile platforms and via the internet. Approximately 2/3 of the single family homes are rented or leased to tenants. Finally, a number of homes are rented for the purpose of providing short-term vacation stays to visitors from outside the area. More information about the City is available on our web site at www.slocity.org. SCOPE OF SERVICES 1. Business License Compliance - Develop and execute a work plan that incorporates the following elements: a. Provides advance notice to the business community of an upcoming business license enforcement effort that is designed to identify businesses that are operating within the City of San Luis Obispo without a business license. b. Demonstrates how a full understanding of the City’s business license ordinance shall be established and maintained by all employees who will participate in this engagement. c. Demonstrates the methods that will be used to identify each type of business that operates within the City of San Luis Obispo to maximize compliance with the business license ordinance. d. Demonstrates the methods and types of notifications that will be issued as part of a program designed to collect unpaid and delinquent business license fees and taxes. e. Demonstrates the manner in which the employees of the consultant will establish communications with employees of the City in order to ensure that consistent information is shared between consultant, the City, and the business community. f. Demonstrate how an amnesty program might be utilized in order to incentivize unlicensed businesses to comply with the business license ordinance. 2. Business License Tax Consultation a. Provide as needed consultation services aimed at maintaining and enhancing the City’s Business License tax revenue base, covering such topics as: revenue forecasting assistance, statewide trends, specific opportunities and potential challenges to the City; b. Provide timely information regarding existing and proposed legislation that could affect Business License tax revenues, specifically indicating how the City might be impacted; c. Review the City’s Business License ordinance and provide feedback and suggestions for its improvement; d. Review City’s Business License tax remittance materials and make suggestions for improvement; 11.a Packet Pg. 292 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -2- e. Train City staff on optimum license renewal processing techniques to maximize accurate and timely compliance; f. Aid the City in developing a plan for changing the business license renewal date from July 31st to a time frame that creates less conflicting workload on existing staff. 3. Other Services There are services not otherwise identified in the City’s RFP that the proposer may offer to the City. Proposals are not required to address any additional services in order to be considered an acceptable proposal. However, final selection of the successful proposer may be based on the desirability and cost of the additional services offered. These may include the following: a. Identify whether material levels of gross receipt underreporting has occurred for one or more business sectors and provide a work plan that will provide for the confirmation of the gross receipt reporting that has been provided to the City by these businesses. 11.a Packet Pg. 293 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -3- Section B GENERAL TERMS AND CONDITIONS PROPOSAL REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal shall meet all of the terms, and conditions of this Request for Proposals (RFP) specifications package. By virtue of its proposal submittal, the proposer acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2. Proposal Content. The substance of the proposal will carry more weight than the form or manner of presentation. The proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to the engagement. The proposal document must demonstr ate not only how your firm will successfully carryout the scope of work but must also describe how it has done so for other California cities. The proposal should be prepared in a straightforward and economical manner, providing a concise description of t he proposer’s capabilities to satisfy the requirements of the RFP. The proposal must provide responses to the evaluation points shown below. a. Company Qualifications and Experience. To qualify, the firm must have comprehensive experience with the administration of business license processes of local governments. The proposal should state the staff size of the firm, the location of the office from which the work on this engagement is to be performed, and the number and titles of the professional staff to be employed in this engagement. The proposal must include current resumes for all staff that will be assigned to this engagement. b. Similar Engagements with Other Government Entities. List the most significant engagements performed within the last three (3) years with other governmental entities that are similar to the engagement listed in this RFP. Provide client contact information for each of these engagements, including the client’s name, contact individual’s name, address, phone number and email address. (The City reserves the right to contact any or all of the listed references regarding services performed by the proposer). c. References. Provide three local government references from agencies for which your firm is currently providing services that most closely match those called for in this RFP. Reference information shall be for the most senior staff member with whom your staff interacts during the engagement. Please include the client’s name, contact individual’s name and job title, address, phone number and email address. 3. Sample Documentation. Provide with the proposal document, copies of previously used notices and other communications that have been used successfully when your firm interacted with the business community and others in previous similar engagements. 4. Proposal Submittal. Each proposal must be submitted in the format described in the RFP specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be enclosed in an envelope that shall be sealed and addressed to the Department of Finance and Information Technology, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. The submittal package shall include 1 (one) hardcopy version of the proposal and a thumb drive containing electronic versions of the documents provided in hardcopy form. Each electronic document provided on the thumb drive shall be properly labeled with regard to the order in which it appears in print. It is the responsibility of the firm submitting a proposal to ensure that the electronic document(s) submitted are protected to ensure that no 11.a Packet Pg. 294 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -4- changes can be made to the submittal once it is in the possession of the city. In order to guard against premature opening, the proposal should be clearly labeled with the proposal title, specification number, name of bidder, and date and time of proposal opening. No FAX submittals will be accepted. 5. Insurance Certificate. Each proposal must include a certificate of insurance showing: a. The insurance carrier and its A.M. Best rating. b. Scope of coverage and limits. c. Deductibles and self-insured retention. The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required until contract award. The City’s insurance requirements are detailed in Section E. 6. Proposal Quotes and Unit Price Extensions. The extensions of unit prices for the quantities indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount stated by any bidder for any item are not in agreement, the unit price alone will be considered as representing the bidder's intention and the proposal total will be corrected to conform to the specified unit price. 7. Proposal Withdrawal and Opening. A proposer may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance and Information Technology for its withdrawal, in which event the proposal will be returned to the proposer unopened. No proposal received after the time specified or at any place other than that stated in the "Notice Requesting Proposals" will be considered. All proposals will be opened and declared publicly. Proposers or their representatives are invited to be present at the opening of the proposals. 8. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub - proposal to a proposer submitting a proposal, or who has quoted prices on materials to such proposer, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other proposers submitting proposals. 9. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged, but will be permitted. However, any such oral communication shall not be binding on the City. CONTRACT AWARD AND EXECUTION 10. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the "special terms and conditions" in Section C of these specifications for proposal evaluation and contract award criteria. 11.a Packet Pg. 295 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -5- 11. Competency and Responsibility of Proposer. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of proposers. Proposers will provide, in a timely manner, all information that the City deems necessary to make such a decision. 12. Contract Requirement. The proposer to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. 13. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section E of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution. 14. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate before execution of the contract. Additional information regarding the City's business tax program may be obtained by calling (805) 781-7134. CONTRACT PERFORMANCE 15. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 16. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 17. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 18. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 19. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 20. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 21. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor's operations, it shall be replaced or restored at the Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 11.a Packet Pg. 296 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -6- 22. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized t o work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 23. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 24. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 25. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment or services provided by the Contractor (Net 30). 26. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contr act requirements. 27. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 28. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants th at, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 29. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers that arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the 11.a Packet Pg. 297 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -7- Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 30. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 31. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibi lities, or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. Notwithstanding anything herein to the contrary, City reserves the right and Contractor hereby agrees that City may terminate this Agreement without cause and for any reason whatsoever upon thirty (30) days prior written notice. 11.a Packet Pg. 298 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -8- Section C SPECIAL TERMS AND CONDITIONS 1 Contract Term. The term of the contract shall be for a limited term as mutually agreed to by both parties. 2. Proposal Content. Formatting of all information and documentation is left to the discretion of the proposer. However, proposals should contain the following forms providing the information called for here and elsewhere in this document. Please avoid the use of advertising material in your submittal. Proposals should meet the following guidelines. a. Proposals should not be excessively long, including attachments and supplemental materials. The proposal should be prepared simply and economically, providing a straightforward, concise presentation of the information requested. Please keep marketing material to a minimum and emphasize factual material. b. The required font size is 12 point, with minimum left and right margins of one -inch, and top and bottom margins of 0.7 inches. c. One (1) hardcopy version of the proposal must be submitted along with an electronic version submitted on a thumb drive that has been scanned for viruses immediately before submittal to the City. The electronic version (PDF) of the proposal shall include all of the documents reflected in the hard copy version, with all material organized e xactly as it is within the hard copy version. (Note: For ease of proposal preparation, proposers are asked to prepare their own proposal submittal forms as long as they contain the information requested below, in the same order that each item is listed here) d. Proposal submittal cover letter and signature page. (item 1 in submittal, cover letter to be no more than 2 pages in length) e. To qualify, the firm must have comprehensive experience in business license processes of local governments. The proposal should state the staff size of the firm, the location of the office from which the work on this engagement is to be performed, and the number and jot titles for the staff who will be employed on this engagement. Provide resumes for all staff assigned to this engagement and an organization chart showing the relationship of staff assigned to this engagement in relation to the rest of the firm’ f. The proposer must identify the municipal clients for which it has performed its most significant work on tasks similar to those called for in this document within the past 3 years. The nature of each engagement should be described here. Provide client contact information for each of these clients including contact’s name, title, phone and email address. g. Provide three (3) local government references from agencies for which you are currently providing services that most closely match those called for in this document. Provide client contact information for each of these clients including contact’s name, title, ph one and email address. 11.a Packet Pg. 299 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -9- h. Provide a timeline for completing the engagement which identifies major work tasks and milestone dates, assuming that the enforcement phase of the scope of work begins in January 2016. i. Provide samples of letters and other documents that you believe represent successful efforts to contact the business community regarding the need to comply with the Business License Ordinance. 4. References. From each of the California municipalities for whom you have provided similar services within the past 3 (three) years see form provided in References Section of this document. 5. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee based on the following criteria: a. Understanding of the work required by the City b. Quality, clarity and responsiveness of the proposal, including attention to form submittal requirement details c. Demonstrated competence and professional qualifications necessary for satisfactory performance of the work required by the City d. Recent experience in successfully performing similar services for comparable cities f. Proposed approach in completing the work g. References h. Background and related experience of the specific individuals to be assigned to this work i. Proposed compensation As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City. After evaluating the proposals and discussing them further with the finalists or the tentatively selected consultant, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation 6. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award: a. Issue RFP 4/15 b. Receive proposals 5/15 c. Complete proposal evaluation 6/15 d. Finalize staff recommendation 7/25 e. Award contract 8/15 f. Execute contract 9/01 g. Start work 9/15 11.a Packet Pg. 300 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -10- 2. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Contractor as part of the work or services under these specifications shall be the property of City and shall not be made available to any individual or organization by the Contractor without the prior written approval of the City. 3. Copies of Reports and Information. If the City requests additional copies of reports, or any other material in addition to what the Contractor is required to furnish in limited quantities as part of the work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 4. Non-Exclusive Contract. The City reserves the right to contract with other firms for business license processing services during the term of the contract. 5. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Contractor at as many public meetings as needed to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing workscope tasks. 11.a Packet Pg. 301 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -11- Section D FORM OF AGREEMENT AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [day, date, year] by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [CONTRACTOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, on [date], City invited requested proposals for business license compliance services per Specification No. 91449. WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said services. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until_______________________. 2. INCORPORATION BY REFERENCE. City Specification No. 91449 and Contractor's proposal dated [date], are hereby incorporated in and made a part of this Agreement. To the extent that there are any conflicts between the City’s specification and this Agreement and the Contractor’s proposal, the terms of the City’s specification and this Agreement shall prevail, unless specifically agreed otherwise in writing signed by both parties. 3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Consultant shall receive therefore compensation as set forth in Exhibit A of this agreement. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Consultant agrees with City to do everything required by this Agreement. 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 Council of the City. 11.a Packet Pg. 302 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -12- 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. 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 City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Consultant Name Address 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execut e Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO ________________________________ By:_____________________________________ City Clerk Mayor APPROVED AS TO FORM: CONTRACTOR ________________________________ By: _____________________________________ City Attorney 11.a Packet Pg. 303 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -13- Section E INSURANCE REQUIREMENTS Consultant Services The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automo bile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Errors and Omissions Liability insurance as appropriate to the consultant's profession. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 4. Errors and Omissions Liability: $1,000,000 per occurrence. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupie d or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 11.a Packet Pg. 304 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -14- 3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endor sements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. 11.a Packet Pg. 305 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -15- PROPOSAL SUBMITTAL FORM Business License Compliance Services The authorized representative identified below declares that he or she:  Has carefully examined Specification No. 91449, which is hereby made a part of this proposal.  Is thoroughly familiar with its contents.  Is authorized to represent the proposing firm.  Agrees to perform the work as set forth in this proposal.  Certificate of insurance attached; insurance company’s A.M. Best rating: __________________. Firm Name and Address Contact Phone Signature of Authorized Representative Date 11.a Packet Pg. 306 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) -16- REFERENCES Number of years engaged in providing the services included within the scope of the specifications under the present business name: . Please provide in the space below, the references requested earlier in the document. If you need more room, please make a copy of this form and attach it. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 2 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 3 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome 11.a Packet Pg. 307 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) BIDDERS LIST BUSINESS LICENSE COMPLIANCE SERVICES—SPECIFICATION NO. 91449 MuniServices LLC Mary Flynn 7625 N Parm Ave, Suite 108 Fresno, CA 93711 (626) 536-2173 Phone No Fax No. Business Name Contact Name Address City, State and Zip Code Phone No. Fax No. Lance Soll & Lunghard, LLP 13305 Penn St, Suite 200 Whittier, CA 90602 (562 945-1611 Phone No (562) 693-4636 Fax No Business Name Contact Name Address City, State and Zip Code Phone No. Fax No. HDL Companies George Bonin 1340 Valley Vista Dr., Suite 200 Diamond Bar, CA 91765 Phone No. Fax No. Business Name Contact Name Address City, State and Zip Code Phone No. Fax No. Municipal Auditing Services LLC Contact Name P O Box 11866 Fresno, CA 93775-186 (559) 277-5990 Phone No (559) 277-5929 Fax No. Business Name Contact Name Address City, State and Zip Code Phone No. Fax No. Business Name Contact Name Address City, State and Zip Code Phone No. Fax No. Business Name Contact Name Address City, State and Zip Code Phone No. Fax No.  NOTE: Not to be included with Bidder's Package when mailed or handed out. This should be included and referenced as an attachment to the Council Agenda Report or City Manager Report. 11.a Packet Pg. 308 Attachment: a - Business License RFP (1294 : Business License Compliance Services RFP) Page intentionally left blank. Meeting Date: 4/19/2016 FROM: Michael Codron, Community Development Director Prepared By: Jenny Wiseman, Planning Technician SUBJECT: REQUEST FROM THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO REGARDING ISSUANCE OF A TAX-EXEMPT LOAN TO ACQUIRE AND REHABILITATE 55 AFFORDABLE HOUSING UNITS AT 1092 ORCUTT ROAD, 1102 IRONBARK, AND 1363 PISMO STREET. RECOMMENDATION 1. Conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA) of 1982 and pursuant to the requirements of the Internal Revenue Code of 1986; and 2. Adopt a resolution (Attachment A) allowing the issuance of a tax-exempt loan by the Housing Authority of the City of San Luis Obispo to acquire and rehabilitate Laurel Creek Apartments, Ironbark Apartments, and Pismo Buchon Apartments. DISCUSSION Background The Housing Authority of the City of San Luis Obispo (the “Authority”) is requesting that the Council hold a public hearing regarding the issuance of a tax-exempt loan to acquire and rehabilitate 55 units of affordable housing. The units are located in the Laurel Creek Apartments (1092 Orcutt Road), Ironbark Apartments (1102 Ironbark), and Pismo Buchon Apartments (1363 Pismo). Although there is no financial participation (or liability, direct or indirect) by the City in approving the issuance of this “conduit” financing, Council conduct of a public hearing and approval of the issuance is required under federal regulations for tax-exempt financing. The Housing Authority was the original developer for Laurel Creek Apartments, Ironbark Apartments, and Pismo Buchon Apartments, to provide additional affordable housing in the City of San Luis Obispo. The primary funding source for each of these projects was the low-income housing tax credits awarded by the California Tax Credit Allocation Committee (TCAC). These tax credits were then purchased by an investor who became a limited partner. California statute does not allow Housing Authorities to be a party in these partnerships, so the Housing Authority transferred its interest to San Luis Obispo Non-profit Housing Corporation (SLONP). SLONP serves as the sole Managing General Partner. The partnerships have a 15 year compliance period over which the tax credits are earned. After the 15 years, the limited partner has the option to seek a buyer for its interest. 12 Packet Pg. 309 Laurel Creek Apartments, Ironbark Apartments, and Pismo Buchon Apartments have all passed the 15 year compliance period, and the limited partner, WNC & Associates, wishes to dissolve the partnership and sell its interest in the properties. All of the properties have capital improvement needs that must be addressed in the near future. The combined dollar value of capital improvements needed is approximately $1,820,000. The Housing Authority wishes to purchase the partnership interests in Laurel Creek Apartments, Ironbark Apartments, and Pismo Buchon Apartments. The Housing Authority will then work with SLONP to form a new partnership to apply for new tax credits and tax-exempt bonds to provide funding for the acquisition and capital improvement that are necessary. Project Summary 1. Laurel Creek Apartments is a 24 unit affordable rental apartment complex located at 1092 Orcutt Road. Laurel Creek Apartments was placed into service in June 1994 and is in need of approximately $1,200,000 in capital improvements. 2. Ironbark Apartments, located at 1102 Ironbark, has 20 affordable rental units and was placed into service in November 1995. Approximately $20,000 per unit in capital improvements is needed for the site, for a total of $400,000. 3. Pismo Buchon Apartments are located at 1363 Pismo Street. The affordable housing complex has 11 rental units and was placed into service in 2000. Approximately $220,000 is needed in capital improvements for this complex. 4. The issuance of the Bond requires that the Council conduct a publ ic hearing regarding the financing of the Project under the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”), and pursuant to the requirements of the Internal Revenue Code of 1986. The TEFRA public hearing allows Council to adopt a resolution approving the issuance by the Authority of the Bonds, in order to maintain purchase and rehabilitate the three housing facilities. No City Liability for the Financing There is no City liability in approving the issuance of conduit financing. The bonds are payable solely from the payments by the Borrower on a loan made to it (the “Borrower Loan”) by the Authority from the proceeds of the Bonds. The rental payments by tenants in the Project are the source of revenue used by the Borrower to repay the Borrower Loan. The City has no financial, legal, or moral obligation, liability or responsibility for the Project or for the repayment of the Bonds or the repayment of the Borrower Loan. The documents for the Bonds clearly provide that the Bonds are payable solely from payments on the Borrower Loan made by the Borrower. Outside of holding this hearing and adopting the required resolution, no other participation or activity of the City with respect to the bonds will be required. 12 Packet Pg. 310 City’s Conduit Financing Policy While the Council is not obligated to approve this request, it would be consistent with past City actions regarding the Project. Requests for conduit financing are considered based on the liability to the City in issuing the bonds on behalf of the applicant, determining that there is a clear public purpose in providing this financing, and that the applicant is capable of achieving the public purpose. Under the City’s debt financing and management policies, outlined in the 2015-17 Financial Plan, consideration of a request for conduit financing is generally a two-step process: 1. First ask the Council if they are interested in considering the request , and if so, establish the ground rules for evaluating it. 2. Return to the Council with the results of this evaluation and recommend approval of appropriate financing documents if warranted. Given the Council’s prior approval of conduit financing to the Housing Authority in the past, and due to the close and ongoing working relationship between the City and Housing Authority; staff recommends that the Council find that the Housing Authority is capable of achieving the public purpose of maintaining and providing affordable housing funded partially through tax-exempt loans. City’s Past Experience with Conduit Housing Bonds The City has approved nine “conduit” housing bond issues in the past as reflected in the following summary. There have been no financial difficulties with any of these bond issues. 1. 1985. 168-unit apartment development on Southwood Drive (refinanced in 1993). 2. 1998. 30-unit development (all affordable for seniors and persons with disabilities) on Brizzolara Street. 3. 1999. 122-unit apartment development by the De Vaul Ranch Company, of which 26 units will be affordable: 24 for “very-low” and 2 for “moderate” income households. 4. 2002. 19-unit senior apartment development at 433 Pacific Street (Pacific and Carmel). 5. 2005. 40 affordable one-bedroom units for seniors as well as one manager’s unit in an existing historic single-family residence at 2005 Johnson Avenue (“Del Rio Terrace”). 6. 2009 and 2011. 8-unit housing project at 1468 East Foothill Boulevard for the University Board of the Santa Barbara Presbytery. 7. 2012. 120-unit apartment project affordable to low and very-low income households located at 1550 Madonna Road. 8. 2013. 19-unit apartment project affordable rental apartment facility for seniors located at 433 Pacific (“Carmel Street Apartments”). 12 Packet Pg. 311 9. 2013. 40-unit affordable rental apartment facility for seniors located at 2005 Johnson Avenue (“Del Rio Terrace”). Next Steps After the TEFRA public hearing and adoption of the Resolution of the Council approving the issuance of the Bonds, the Authority will apply for low income housing tax credits and tax- exempt bonds in July of 2016. There will be no further actions required by the City Council. ENVIRONMENTAL REVIEW This project is exempt from environmental review per Section 15061(b)(3) of the California Environmental Quality Act Guidelines because action is in regards to financing an existing affordable housing project that was reviewed for environmental compliance at time of development. The activity in question will not have a significant impact on the environment. FISCAL IMPACT There are no fiscal impacts to the City associated with this matter. As noted above, the City has no liability, directly or indirectly, for the financing. ALTERNATIVES 1. Do not approve the issuance of bonds by the Authority. Given the approvals that the Project has already received from the City and the lack of any liability for repayment of the Bonds by the City, this option is not recommended. 2. Defer consideration of the request. Due to the need for rehabilitation resulting from the issuance of the Bonds, and the deadline for tax credit applications, this option is not recommended. 12 Packet Pg. 312 R ______ RESOLUTION NO. ______ (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE INCURRING OF A TAX EXEMPT OBLIGATION BY THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE PURPOSE OF PROVIDING FINANCING FOR THE ACQUISITION AND REHABILITATION OF LAUREL CREEK, IRONBARK, AND PISMO BUCHON APARTMENTS WHEREAS, the Housing Authority of the City of San Luis Obispo (the "Authority") is authorized by Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of California, as amended (the "Act"), to incur indebtedness and to make loans for housing purposes specified in the Act; and WHEREAS, the Authority has expressed an interest in establishing a California limited partnership (the “Borrower”) and in assisting the Borrower in acquiring and rehabilitating the following three apartment facilities (collectively referred to in this Resolution as the “Housing Facilities”): Laurel Creek Apartments, located at 1092 Orcutt Road, Ironbark Apartments located at 1102 Ironbark Street, and Pismo Buchon Apartments, located at 1363 Pismo Street; and WHEREAS, such assistance will involve the issuance by the Authority of debt obligations (which may be in the form of a loa n evidenced by a note or tax-exempt revenue bonds, and referred to in this Resolution as the “Bonds”) in the approximate amount of $6,000,000, and a loan of the proceeds of the Bonds to the Borrower; and WHEREAS, a portion of the housing units in the Housing Facilities will be rented to persons and families of low or very low income as required by the Act and the Internal Revenue Code of 1986, as amended (the "Code"); and WHEREAS, the Bonds will be considered to be a "qualified exempt facility bonds" under Section 142(a) of the Code; and Section 147(f) of the Code requires that the "applicable elected representative" with respect to the Authority approve the issuance by the Authority of the Bonds following the holding of a public hearing with respect thereto; and WHEREAS, the Authority has determined that the City Council is the "applicable elected representative" to approve the issuance by the Authority of the Bonds because the Housing Facilities are all located within the City; and WHEREAS, notice of a public hearing by the Council regarding the financing of the Projects has been duly given as required by the Code, and the Council has held the public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the location, operation and financing of the Housing Facilities, including the Authority's issuance of the Bonds and subsequent lending of the proceeds thereof to the Borrower to pay costs of the acquisition and rehabilitation by the Borrower of the Housing Facilities; and 12.a Packet Pg. 313 Attachment: a - Draft Resolution (1274 : TEFRA Hearing for HASLO - 1092 Orcutt, 1102 Ironbark, 1363 Pismo) Resolution No. ______ (2016 Series) Page 2 R ______ WHEREAS, the City will not be a party to any of the agreements or other documents related to the Bonds and the financing of the Housing Facilities, the City will have no liability or responsibility related to the repayment or administration of the Bonds, and the issuance of the Bonds and the financing of the Housing Facilities will not impose any legal, financial or moral obligation on the City; and WHEREAS, it is in the public interest, for the public benefit and in furtherance of the public purpose of the City that the Council approve the issuance by the Authority of the Bonds for the aforesaid purposes. BE IT RESOLVED that the Council of the City of San Luis Obispo does declare, determine and order as follows: SECTION 1. Environmental Determination. The City Council has determined that the above actions will not have a significant impact on the environment, as defined by §15061(b)(3) of the California Environmental Quality Act and are exempt from environmental review. SECTION 2. Action. The Council of the City of San Luis Obispo hereby approves the issuance of the Bonds by the Authority for purposes of the Code. This resolution shall take effect immediately upon its adoption. Upon motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was adopted this ______ day of ____________ 2016. Mayor Jan Marx ATTEST: Lee Price, MMC Interim City Clerk 12.a Packet Pg. 314 Attachment: a - Draft Resolution (1274 : TEFRA Hearing for HASLO - 1092 Orcutt, 1102 Ironbark, 1363 Pismo) Resolution No. ______ (2016 Series) Page 3 R ______ 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 ______________, _________. ______________________________ Lee Price Interim City Clerk 12.a Packet Pg. 315 Attachment: a - Draft Resolution (1274 : TEFRA Hearing for HASLO - 1092 Orcutt, 1102 Ironbark, 1363 Pismo) Page intentionally left blank. Meeting Date: 4/19/2016 FROM: Michael Codron, Community Development Director Prepared By: Jenny Wiseman, Planning Technician SUBJECT: REQUEST FROM THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO REGARDING ISSUANCE OF A TAX-EXEMPT LOAN TO DEVELOP 46 AFFORDABLE HOUSING UNITS AT 3680 BROAD STREET. RECOMMENDATION 1. Conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA) of 1982 and pursuant to the requirements of the Internal Revenue Code of 1986. 2. Adopt a resolution (Attachment A) allowing the issuance of a tax-exempt loan by the Housing Authority of the City of San Luis Obispo to develop 46 affordable housing units at 3680 Broad Street. DISCUSSION Background The Housing Authority of the City of San Luis Obispo (the “Authority”) is requesting that the City Council hold a public hearing regarding the issuance of a tax-exempt loan to develop Iron Works Apartments, 46 affordable housing units located at 3680 Broad Street. Although there is no financial participation (or liability, direct or indirect) by the City in approving the issuance of this “conduit” financing, Council conduct of a public hearing and approval of the reissuance is required under federal regulations for tax-exempt financing. The Housing Authority is committed to providing much needed additional affordable housing in the City of San Luis Obispo. The primary funding source for this project will be low income housing tax credits awarded by the California Tax Credit Allocation Committee (TCAC). These tax credits will then be purchased by an investor who becomes a limited partner. California statute does not allow Housing Authorities to be a party in these partnerships, so the Housing Authority will hold its interest through its related entity San Luis Obispo Non-profit Housing Corporation (SLONP). SLONP will serve as the sole Managing General Partner for Iron Works Apartments. The partnerships have a 15 year compliance period over which the tax credits are earned. After the 15 years, the limited partner has the option to seek a buyer for its interest. The project will feature an affordability requirement for a minimum of 55 years. 13 Packet Pg. 316 Project Summary 1. Iron Works Apartments will consist of 100% of the units to be rented to households at 60% Area Median Income and below for a minimum of 55 years. The project consists of 46 units: 12 one bedroom units, 19 two bedroom units, and 15 three bedroom units. 2. Estimated total development costs are projected to be $14.9 million. Of this, it is anticipated that roughly $10 million in tax-exempt bond financing will be utilized to finance the project development. 3. The issuance of the Bond requires that the Council conduct a public hearing regarding the financing of the Project under the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”), and pursuant to the requirements of the Internal Revenue Code of 1986. The TEFRA public hearing allows Council to adopt a resolution approving the issuance by the Authority of the Bonds, in order to maintain, purchase and rehabilitate the three housing facilities. No City Liability for the Financing There is no City liability in approving the issuance of conduit financing. The bonds are payable solely from the payments by the Borrower on a loan made to it (the “Borrower Loan”) by the Authority from the proceeds of the Bonds. The rental payments by tenants in the Project are the source of revenue used by the Borrower to repay the Borrower Loan. The City has no financial, legal, or moral obligation, liability or responsibility for the Project or for the repayment of the Bonds or the repayment of the Borrower Loan. The documents for the Bonds clearly provide that the Bonds are payable solely from payments on the Borrower Loan made by the Borrower. Outside of holding this hearing and adopting the required resolution, no other participation or activity of the City with respect to the bonds will be required. City’s Conduit Financing Policy While the Council is not obligated to approve this request, it would be consistent with past City actions regarding conduit financing. Requests for conduit financing are considered based on the liability to the City in issuing the bonds on behalf of the applicant, determining that there is a clear public purpose in providing this financing, and that the applicant is capable of achieving the public purpose. Under the City’s debt financing and management policies, outlined in the 2015-17 Financial Plan, consideration of a request for conduit financing is generally a two-step process: 1. First asking the Council if they are interested in considering the request and establishing the ground rules for evaluating it. 2. And then returning with the results of this evaluation and recommending approval of appropriate financing documents if warranted. Given the Council’s prior approval of conduit financing to the Housing Authority in the past, and due to the close and ongoing working relationship between the City and Housing Authority; Staff 13 Packet Pg. 317 finds that the Housing Authority is capable of achieving the public purpose of providing much needed affordable housing funded partially through tax-exempt loans. City’s Past Experience with Conduit Housing Bonds The City has approved nine “conduit” or tax-exempt housing bond issues in the past as reflected in the following summary. There have been no financial difficulties with any of these bon d issues. 1. 1985. 168-unit apartment development on Southwood Drive (refinanced in 1993). 2. 1998. 30-unit development (all affordable for seniors and persons with disabilities) on Brizzolara Street. 3. 1999. 122-unit apartment development by the De Vaul Ranch Company, of which 26 units will be affordable: 24 for “very-low” and 2 for “moderate” income households. 4. 2002. 19-unit senior apartment development at 433 Pacific Street (Pacific and Carmel). 5. 2005. 40 affordable one-bedroom units for seniors as well as one manager’s unit in an existing historic single-family residence at 2005 Johnson Avenue (“Del Rio Terrace”). 6. 2009 and 2011. 8-unit housing project at 1468 East Foothill Boulevard for the University Board of the Santa Barbara Presbytery. 7. 2012. 120-unit apartment project affordable to low and very-low income households located at 1550 Madonna Road. 8. 2013. 19-unit apartment project affordable rental apartment facility for seniors located at 433 Pacific (“Carmel Street Apartments”). 9. 2013. 40-unit affordable rental apartment facility for seniors located at 2005 Johnson Avenue (“Del Rio Terrace”). Next Steps After the TEFRA public hearing and adoption of the Resolution of the Council (Attachment A) approving the issuance of the Bonds, the Authority will apply for low income housing tax credits and tax-exempt bonds in March of 2016. There will be no further actions required by the City Council. ENVIRONMENTAL REVIEW The project is exempt from environmental review per Section 15061(b)(3) of the California Environmental Quality Act Guidelines because action is in regards to financing a future affordable housing project which will be subject to environmental review. The activity in question will not have a significant impact on the environment. 13 Packet Pg. 318 FISCAL IMPACT There are no fiscal impacts to the City associated with this matter. As noted above, the City has no liability, directly or indirectly, for the financing. ALTERNATIVES 1. Do not approve the issuance of bonds by the Authority. The project has already received all necessary land use entitlements, as well as multiple City loan commitments. Due to lack of liability for repayment of the Bonds by the City, this option is not recommended. 2. Defer consideration of the request. Due to the critical need for tax-exempt bond financing in order to construct the apartments, this option is not recommended. 13 Packet Pg. 319 R ______ RESOLUTION NO. ______ (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE INCURRING OF A TAX EXEMPT OBLIGATION BY THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE PURPOSE OF PROVIDING FINANCING FOR THE CONSTRUCTION OF IRON WORKS APARTMENTS WHEREAS, the Housing Authority of the City of San Luis Obispo (the "Authority") is authorized by Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of California, as amended (the "Act"), to incur indebtedness and to make loans for housing purposes specified in the Act; and WHEREAS, the Authority has expressed an interest in establishing a California limited partnership (the “Borrower”) and in assisting the Borrower to develop Iron Works Apartments, a 46 unit affordable housing project located at 3680 Broad Street (referred to in this Resolution as the “Housing Facility”); and WHEREAS, such assistance will involve the issuance by the Authority of debt obligations (which may be in the form of a loan evidenced by a note or tax -exempt revenue bonds, and referred to in this Resolution as the “Bonds”) in the approximate amount of $10,000,000, and a loan of the proceeds of the Bonds to the Borrower; and WHEREAS, a portion of the housing units in the Housing Facility will be rented to persons and families of low or very low income as required by the Act and the Internal Revenue Code of 1986, as amended (the "Code"); and WHEREAS, the Bonds will be considered to be a "qualified exempt facility bonds" under Section 142(a) of the Code; and WHEREAS, Section 147(f) of the Code requires that the "applicable elected representative" with respect to the Authority approve the issuance by the Authority of the Bonds following the holding of a public hearing with respect thereto; and WHEREAS, the Authority has determined that the City Council is the "applicable elected representative" to approve the issuance by the Authority of the Bonds because the Housing Facility is located within the City; and WHEREAS, notice of a public hearing by the Council regarding the financing of the Project has been duly given as required by the Code; and WHEREAS, the Council has held the public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the location, operation and financing 13.a Packet Pg. 320 Attachment: a - Draft Resolution (1275 : TEFRA Hearing for Iron Works) Resolution No. ______ (2016 Series) Page 2 -2- of the Housing Facility, including the Authority's issuance of the Bonds and subsequent lending of the proceeds thereof to the Borrower to pay costs of the construction by the Borrower of the Housing Facility; and WHEREAS, the City will not be a party to any of the agreements or other documents related to the Bonds and the financing of the Housing Facility, the City will have no liability or responsibility related to the repayment or administration of the Bonds, and the issuance of the Bonds and the financing of the Housing Facilit y will not impose any legal, financial or moral obligation on the City; and WHEREAS, it is in the public interest, for the public benefit and in furtherance of the public purpose of the City that the Council approve the issuance by the Authority of the Bonds for the aforesaid purposes. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis Obispo does declare, determine and order as follows: SECTION 1. The Council of the City of San Luis Obispo hereby approves the issuance by the Authority of the Bonds for purposes of the Code. SECTION 2. Environmental Determination. The City Council has determined that the above actions will not have a significant impact on the environment, as defined by §15061(b)(3) of the California Environmental Quality Act and are exempt from environmental review. SECTION 3. This Resolution shall take effect immediately upon its adoption. Upon motion of _______________ seconded by _______________ and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was adopted this ______ day of ____________ 2016. Mayor Jan Marx ATTEST: Lee Price, MMC Interim City Clerk 13.a Packet Pg. 321 Attachment: a - Draft Resolution (1275 : TEFRA Hearing for Iron Works) Resolution No. ______ (2016 Series) Page 3 -3- 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 ______________, _________. ______________________________ Lee Price, MMC Interim City Clerk 13.a Packet Pg. 322 Attachment: a - Draft Resolution (1275 : TEFRA Hearing for Iron Works) Page intentionally left blank. Meeting Date: 4/19/2016 FROM: Michael Codron, Community Development Director Prepared By: Rachel Cohen, Associate Planner SUBJECT: CONSIDERATION OF AN ORDINANCE TO AMEND TABLE 9 OF SECTION 17.22.010 OF THE CITY’S ZONING REGULATIONS TO CONDITIONALLY PERMIT A NIGHT CLUB USE WITHIN THE BUSINESS PARK ZONE IN THE AIRPORT AREA; CONSIDERATION OF A RESOLUTION AMENDING THE AIRPORT AREA SPECIFIC PLAN TO ALLOW A NIGHT CLUB LAND USE (LIVE INDOOR/OUTDOOR ENTERTAINMENT) WITHIN THE BUSINESS PARK ZONE AND APPROVING A USE PERMIT TO ALLOW A NIGHT CLUB (LIVE INDOOR/OUTDOOR ENTERTAINMENT) AND OFF-SITE PARKING AT 855 AEROVISTA PLACE. RECOMMENDATION As recommended by the Planning Commission: 1. Introduce an Ordinance to amend Table 9 of Section 17.22.010 of the City’s Zoning Regulations to allow a Night Club land use within the Business Park zone in the Airport Area with a use permit (Attachment A); and 2. Adopt a Resolution amending the Airport Area Specific Plan to allow a Night Club land use within the Business Park zone and approving a use permit for a night club (live indoor/outdoor entertainment) and off-site parking for SLO Brew at 855 Aerovista and adopting a mitigated negative declaration of environmental impact (Attachment B). REPORT-IN-BRIEF The applicant, Auzco Development, LLC (SLO Brew), has applied for a text amendment to the Zoning Regulations and the Airport Area Specific Plan (AASP) to allow a night club (live indoor/outdoor entertainment) as an allowed use, with Director’s approval, in the Business Park (BP) zone. As part of this request the applicant is requesting a use permit for the SLO Brew Production Facility located at 855 Aerovista Place in the BP zone of the AASP in order to have the opportunity to provide live entertainment as an accessory use to their facility. The request was reviewed by the Airport Land Use Commission (ALUC) and found to be consistent with the Airport Land Use Plan (ALUP). The Planning Commission reviewed the text amendments and use permit for SLO Brew and recommended the City Council approve the request. 14 Packet Pg. 323 DISCUSSION Background 1. Previous Entitlements The project at 855 Aerovista Place has received two previous entitlements: a. February 2, 2015: The ARC reviewed and approved a new commercial building for SLO Brew Production Facility and other light manufacturing and warehousing uses, and a restaurant use. b. February 6, 2015: The Community Development Director reviewed and granted approval of a use permit for a Tasting Room (Bar/Tavern) within the Business Park zone as part of the SLO Brew Production Facility. The approved Tasting Room hours are 11:00 a.m. to 10:00 p.m. daily. 2. Airport Land Use Commission Review On December 16, 2015 the proposed text amendment and use permit for the SLO Brew production facility was referred to the Airport Land Use Commission (ALUC) for a determination of consistency or inconsistency with the Airport Land Use Plan (ALUP). The ALUC determined that the proposed text amendment and the request for a night club use permit for the SLO Brew facility were consistent with the ALUP. The Commission recommended a series of conditions be applied to any night club use permit approvals, as well as a number of conditions for the SLO Brew night club use permit. The findings and conditions associated with the determination of consistency can be found in Attachment D (Notice of Airport Land Use Commission Action) and have been incorporated into the proposed ordinance and resolution (Attachments A & B). 3. Planning Commission Review On February 10, 2016 the Planning Commission (PC) reviewed the request for the proposed text amendments and use permit for the SLO Brew production facility at 855 Aerovista Place. The PC recommended that the use permit requirement of the text amendment be elevated to require PC approval, as opposed to an administrative level. In a 6:1 vote, the Planning Commission recommended the City Council approve the text amendment establishing a night club as an allowed use with PC approval and a night club use permit for the SLO Brew facility at 855 Aerovista (Attachment C, Planning Commission Resolutions, Attachment K, Planning Commission Draft Minutes). Project Information 1. Airport Area Specific Plan Business Park (BP) zoning is found only within the Airport Area and Margarita Area Specific Plan boundaries. Figure 1 highlights the location of the BP zone within the AASP. The BP zone contains sites that are built out, vacant or have active entitlements. The portion of the BP zone located to the southwest part of the AASP (indicated with cross hatch lines on Figure 1) is 14 Packet Pg. 324 currently under review as part of Avila Ranch. Figure 1: Land use designations for the AASP; Business Park zone; Business Park zone under review as a part of Avila Ranch. 2. Project Description – Zoning Regulations Text Amendment and the Airport Area Specific Plan Text Amendment The applicant is requesting a text amendment to the Zoning Regulations and the AASP to allow a Night Club as an allowed use, with Director’s approval, in the BP zone. 3. Project Description – Night club at SLO Brew Production Facility The SLO Brew Production Facility is being constructed in the Aerovista Business Park in the BP zone of the Airport Area Specific Plan. SLO Brew Production Facility would like the opportunity to provide live entertainment on Friday evenings and Saturdays and Sundays as an accessory use to their production facility and restaurant (Attachment E, Project Description). The SLO Brew Production Facility includes:  3,047 square foot entertainment venue,  6,496 square foot brewery production facility,  1,250 square foot kitchen,  1,579 square foot beer tasting/restaurant area,  600 square foot outdoor dining area,  15,444 square foot lease space, and  1,746 square feet of office and mezzanine area. The Aerovista Business Park is composed of four parcels with a combined total acreage of 9.94 acres. The SLO Brew parcel alone is 3.47 acres in size (Attachment F, Vicinity Map). Attachment G shows the business park site plan and the location of SLO Brew and the adjacent structures. In addition to the SLO Brew facility, the Aerovista Business Park also includes four, two-story office buildings which house a variety of professional offices (i.e. doctor’s office, tax 14 Packet Pg. 325 services, government offices, etc.), and a fitness facility with a combined total of 444 parking spaces. Staff estimates a total of 666 people occupy the site when all of the lease spaces are occupied (calculation based on a rate of 1.5 persons per parking space). The majority of these businesses operate from 8:00 a.m. to 5:00 p.m., Monday through Friday. The applicant is proposing on a limited basis (Friday through Sunday) to host events with live music around the existing rock outcropping in the outdoor patio area and inside the facility (Attachment G, Site plan). The applicant is requesting the ability to host weddings (ceremonies would be indoors only), concerts or other large party events. Events would be scheduled only on Friday evenings, 6:00 p.m. to 11:00 p.m., and Saturdays and Sundays, 10:00 a.m. to 11:00 p.m. with no more than a maximum attendance of 600 people. Project Analysis 1. Amending the Zoning Regulations and the Airport Area Specific Plan Zoning Regulations and the AASP Section 17.100.N of the City of San Luis Obispo’s Municipal Code defines a night club as – “a facility providing entertainment, examples of which include live or recorded music and/or dancing, comedy, disc jockeys, etc., which may also serve alcoholic beverages for on-site consumption.” In this particular request, the proposed use is not for a typical night club business that operates every night with late hours and dancing. Instead, the reason for delineating the requested use as a night club is to allow for the ability to provide live music and entertainment as an accessory use to the brewery and restaurant on Friday evenings, Saturdays and Sundays. Currently night clubs are allowed with a use permit within several zones that are located throughout the City including the Community Commercial (C-C), Downtown Commercial (C- D), Retail Commercial (C-R), Tourist Commercial (C-T), Service Commercial (C-S) and the Manufacturing (M) zones.1 According to Chapter 17.49 of the Municipal Code, the BP zone “is intended to provide for research and development, light manufacturing, and business services that are compatible with each other and with airport operations.” The AASP further states that “activities that are supportive of, or accessory to, the primary activities may be allowed as well. The City recognizes that businesses locating in areas designated Business Park often combine product development, promotion, manufacturing, and distribution at a single facility.”2 The request of a night club to allow live entertainment as part of or accessory to an allowed use within the Business Park is consistent with the intention of the language of the AASP. Staff is recommending additional language be added to the AASP Allowed Uses (Table 4.3) to include parameters of review for future night club uses. The text amendment includes recommended requirements from the ALUC that all night club uses be referred to the ALUC and that any proposed night club use shall address parking, neighborhood compatibility and security issues (Attachment B, Exhibit A – AASP Specific Plan Text Amendment). The proposed Title 17 (Zoning Regulations) text amendment includes a footnote that clarifies that the night club use is 1 Zoning Regulations, Table 9. 2 AASP Section 4.2.1. 14 Packet Pg. 326 only allowed in the BP zone of the AASP with Planning Commission approval (Attachment A, Exhibit A – Zoning Regulations Text Amendment). General Plan Policies One of the General Plan’s Community Goals states that the City is to: “Serve as the county's hub for: county and state government; education; transportation; visitor information; entertainment; cultural, professional, medical, and social services; community organizations; retail trade3.” The Land Use Element (LUE) specifically states that Downtown is the community’s urban center serving as the cultural, social, entertainment, and political center of the City for its residents. Entertainment facilities, such as night clubs, are to be in the Downtown.4 Although the LUE encourages night clubs in the Downtown, the Zoning Regulations include opportunities for night clubs to be located outside of Downtown as noted previously. The applicant is not proposing a night club as a primary use, but rather as an accessory to allowed uses (e.g. brewery and restaurant) within the BP zone. This is an important distinction because the proposed use is not a bar, will not function on a nightly basis, but is limited to certain days and hours of operation, and is focused on providing a venue for live entertainment/music for the community and for special events such as wedding receptions. The location of the SLO Brew production facility and restaurant with an accessory night club use for limited live entertainment within the business park zone, near the airport, is appropriat e because the use is not impacted by airport noise and is located more than 800 feet from the nearest residential uses. This is consistent with C-S or M zoned land within the City that is located near residential uses such as Broad Street and Aero Drive (across the street from the proposed site), the South Broad Street Area, Orcutt Road and the railroad tracks and Sacramento Drive. 2. Night club use permit for SLO Brew Production Facility at 855 Aerovista The proposed live indoor/outdoor entertainment component of the brewery/restaurant at the SLO Brew Production Facility is considered an accessory use to the production facility. Staff has evaluated the proposed night club use and provided recommended conditions of approval to address any potential impacts (density, security, noise, traffic, etc.) to ensure the project is 3 Land Use Element. Community Goals: Society and Economy, p. 1-20. 4 Land Use Element Policies 4.1, 4.3, and 4.8: 4.1. Downtown’s Role: Downtown is the community’s urban center serving as the cultural, social, entertainment, and political center of the City for its residents, as well as home for those who live in its historic neighborhoods . The City wants its urban core to be economically healthy, and realizes that private and public investments in the Downtown support each other. Downtown should also provide a wide variety of professional and government services, serving the region as well as the city. The commercial core is a preferred location for retail uses that are suitable for pedestrian access, off-site parking, and compact building spaces. Civic, cultural and commercial portions of Downtown should be a major tourist destination. Downtown's visitor appeal should be based on natural, historical, and cultural features, retail services, entertainment and numerous and varied visitor accommodations. 4.3. Entertainment and Cultural Facilities: Cultural facilities, such as museums and galleries should be Downtown. Entertainment facilities, such as nightclubs and theaters shall be in the Downtown. 4.8. Downtown as Focal Point: The Downtown should remain the focus for nighttime entertainment, cultural events and related activities. It should be a pleasant and safe place at all times. 14 Packet Pg. 327 compatible with neighboring uses. Public Comment On February 25, 2016, the Tribune published an article regarding the proposed live music venue. Following the article, the City received a large amount of written correspondence related to the request. Most of the correspondence expressed concerns regarding noise from the venue, or that the use might exasperate traffic conditions on Broad Street. The following areas have been analyzed for the project in consideration of the concerns expressed, and conditions of approval are recommended to ensure that use is conducted in a manner that is compatible with the immediate surroundings and the residential uses located across Broad Street. Density The applicant proposes to have approximately 600 square feet of outdoor dining space and 3,047 square foot of indoor event space to be available for live entertainment. Events at the site will have no more than 600 people at any given time. The ALUC reviewed the proposal and found it to be consistent with the density standards of the ALUP and the Airport Area Specific Plan which allows 120 persons per acre.5 Traffic Analysis The applicant is proposing hours of operation three days a week; Friday 6:00 p.m. to 11:00 p.m. and Saturday and Sunday 10:00 a.m. to 11:00 p.m. These proposed hours are outside the hours of operation for the majority of the uses on site, as noted previously, which operate from 8:00 a.m. to 5:00 p.m. Monday through Friday. The Initial Study identified that traffic could result in significant but mitigatable impacts related to the performance of circulation along Highway 227/Broad Street during the peak traffic hours of 4:00 p.m.to 6:00 p.m. As such, staff has included Condition No. 23 which requires that events shall not be permitted on Fridays between the hours of 4:00 p.m. and 6:00 p.m. to mitigate impacts of additional traffic during peak hours along Broad Street (Attachment B, Council Resolution). Additionally, per Condition No. 24, vehicle trips associated with the subject property shall be less than 35 per hour (the base trip generation for the brewer y manufacturing and restaurant use excluding the event use) on Fridays between the hours of 4:00 p.m. to 6:00 p.m. If the number of trips exceeds the 35 trips per hour threshold during this period, then the events permitted under this use permit related to the night club use shall be further prohibited on Friday night up until 8:00 pm or prohibited on Friday nights altogether, at the discretion of the Public Works Director. The idea behind this condition is to determine if patrons are coming to the facility during Friday peak traffic hours because of the live entertainment (i.e. the number of actual trips exceeds the trip estimate/ threshold for the underlying brewery/restaurant use). If that threshold is exceeded, it would be assumed that individuals who otherwise would not be patronizing the brewery/restaurant are arriving early for the music event during peak hour traffic. Condition No. 24 mitigates that impact by giving the Public Works Director the ability to further prohibit night club use on Fridays nights until 8:00 p.m. or on Friday nights altogether. 5 AASP Table 4.6 14 Packet Pg. 328 Security & Circulation The applicant has provided a detailed security plan that is included as Attachment H (Security Plan). The security plan includes a queuing plan and details of the duties and responsibilities of all staff. During events, attendants will establish queuing lines and temporary signage to not impede existing foot traffic and direct patrons to the appropriate event area. The areas where queues will be formed are shown on the security plan (Attachment H, pg 5). All staff shall be required to be trained to verify legal age of patrons, monitoring patrons’ on-site alcohol consumption, denying service of alcohol to patrons who demonstrate signs of intoxication, and attend ABC LEAD Training. Parking As part of this use-permit, the applicant is requesting an off-site parking agreement to allow parking for the night club to expand off-site onto the neighboring properties of the Aerovista Business Park. The night club use requires 61 parking spaces. The Zoning Regulations stipulate that a use permit for off-site parking may be approved when off-site parking is located within 300 feet of the use, and the site on which the parking is located is owned, leased or otherwise controlled by the party controlling the use (MC 17.16.060 E). The neighboring properties are owned by the same owner and consist mainly of offices that require parking Monday through Friday, 8:00 a.m. to 5:00 p.m. The night club use will operate at alternate hours to the office uses. Noise The applicant has provided a Noise Study (Attachment I) performed by Mr. David Lord of 45dB.com. Existing sound levels were measured continuously on the proposed site at 10-second intervals over a 24-hour period for three days (Thursday June 19, 2015 to Saturday 21, 2015). An acoustic model with sound level contours was generated for the site based on topography, noise sources and measured sound level values. From this model, the study provided future sound level contours with a maximum of 600 persons, and amplified music and voice with no more than 90 dBA6 at 20 feet from the speakers. The result of this analysis is shown in Figure 2. The sound level deceases from 90 dBA to 58 dBA before intersecting with sound produced from Broad Street/ Highway 227 (with a sound level of 76 dBA). For an idea of common sound levels, 50 dBA is equivalent to a refrigerator running; 60 dBA is a sound level similar to normal conversation at a 3-foot distance; and 70 dBA is equivalent to the sound of a shower or vacuum cleaner. Jet flyover at 1,000 feet is 100 dBA. As mentioned previously, the site is largely surrounded by office uses, which will be closed during the hours of the live entertainment, the San Luis Obispo Airport and associated facilities. The Noise Study concludes that the proposed outdoor entertainment is compatible with the Airport Land Use Plan and complies with the City’s noise regulations (Attachment I, Noise 6 A-weighted sound level. The ear does not respond equally to all frequencies, but is less sensitive at low and high frequencies than it is at medium or speech range frequencies. Thus, to obtain a single number representing the sound level of a noise containing a wide range of frequencies in a manner representative of the ear’s resp onse, it is necessary to reduce the effects of the low and high frequencies with respect to the medium frequencies. The resultant sound level is said to be A-weighted, and the units are dBA. The A-weighted sound level is also called the noise level. 14 Packet Pg. 329 Study, pg. 15), which was also confirmed by the Airport Land Use Commission. The nearest residential development is more than 800 feet from the subject site. Based on the information provided in the Noise Study, the project does comply with the City’s Noise Element, in that it will not expose residents to unacceptable noise levels. However, it is possible that under certain atmospheric conditions, and depending on other noise levels, sound generated by events at SLO Brew may be heard across Broad Street in residential outdoor areas, or even indoors if a window or door is open. While the noise levels would not exceed City thresholds from an environmental impact perspective, the noise may still be considered unwanted by residents. As a result, conditions of approval are proposed that limit amplification and specify that outdoor speakers must be oriented inward to the site to reduce the likelihood of sound travelling into the adjacent neighborhood (Condition No. 6). A condition of approval is also established requiring review of the use permit if complaints are received based on the noise generated from events on the project site (Condition No. 16). Figure 2: Future sound level contours with a maximum of 600 persons, with amplified music and voice, which do not measure greater than 90 dBA at 20 feet from speakers. CONCURRENCES The project has been reviewed by the Police, Building, Fire, Public Works, and Utilities Departments. Their conditions have been incorporated in the ordinance and the resolution. 14 Packet Pg. 330 ENVIRONMENTAL REVIEW After further review by staff and the City Attorney’s office it was determined that an Initial Study should be completed for full compliance with CEQA. An initial study has been prepared by staff in accordance with the California Environmental Quality Act and a Mitigated Negative Declaration (MND) is recommended for adoption (Attachment J). The MND finds that with incorporation of mitigation measures, potential impacts to transportation/traffic will be less than significant. FISCAL IMPACT There is no fiscal impact associated with the approval of this project because no construction or improvements are required as a part of the requested Text Amendment or Use Permit. ALTERNATIVES 1. Continue the project with direction to the applicant and staff on pertinent issues. 2. Deny the Ordinance to amend Title 17 (Zoning Regulations) to allow a Night Club land use within the Business Park zone in the Airport Area with a use permit and a mitigated negative declaration of environmental impact and the Resolution amending the Airport Area Specific Plan to allow a Night Club land use within the Business Park zone and approving a use permit for a night club (live indoor/outdoor entertainment) and off-site parking for SLO Brew at 855 Aerovista and adopting a mitigated negative declaration of environmental impact based on findings of inconsistency with the General Plan, Zoning Regulations and applicable City policy. 14 Packet Pg. 331 O ______ ORDINANCE NO. (2016 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TABLE 9 OF SECTION 17.22.010 OF THE CITY’S MUNICIPAL CODE (ZONING REGULATIONS) CONDITIONALLY PERMITTING A NIGHT CLUB LAND USE WITHIN THE BUSINESS PARK (B-P) ZONE IN THE AIRPORT AREA SPECIFIC PLAN AREA (CODE-1316-2015) WHEREAS, on May 5, 2015, the applicant, SLO Brew Investors, LLC, submitted an application to request an amendment to Table 9 of the San Luis Obispo Municipal Code section 17.22.010 to allow a night club land use (live indoor/outdoor entertainment) within the Business Park zone of the Airport Area Specific Plan; and WHEREAS, the Airport Land Use Commission of the County of San Luis Obispo conducted a public hearing in Board of Supervisors Chambers, County Government Center, 1055 Monterey Street, Room D170, San Luis Obispo, California, on December 16, 2015, and recommended approval of the amendments to the Municipal Code; and WHEREAS, the Planning Commission 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 10, 2016, and recommended approval of the amendments Table 9 of San Luis Obispo Municipal Code section 17.22.010 to allow a night club land use within the Business Park zone of the Airport Area Specific Plan; and WHEREAS, the City Council on April 19, 2016, considered the request of the an amendment to Title 17(Zoning Regulations) and the Airport Area Specific Plan to allow a night club land use (live indoor/outdoor entertainment) within the Business Park zone with a use permit (CODE-1316-2015); and, WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicants, interested parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The City Council hereby finds that the proposed amendments will not significantly alter the character of the City or cause significant health, safety or welfare concerns, since the amendments are consistent with the General Plan and directly implement City goals and policies. SECTION 2. Action. Table 9 of the San Luis Obispo Municipal Code section 17.22.010 is hereby amended as set forth in Exhibit “A” attached hereto and incorporated herein by this reference. 14.a Packet Pg. 332 Attachment: a - Ordinance Introduction (1303 : SLO Brew Night Club Text Amendment) Ordinance No. _______________ (2016 Series) Page 2 O ______ SECTION 3. Environmental Determination. The City Council has considered the proposed Mitigated Negative Declaration of Environmental Impact (“MND”) for this project which was adopted by Resolution No. ______ (2016 Series) together with all comments received during the public review period, and, on the basis of the whole record before it, hereby finds that (1) potentially significant environmental effects were identified but mitigation measures to be included and incorporated into the text amendments to avoid or reduce the effects to a point where clearly no significant effect on the environment would occur; (2) there is no substantial evidence that the text amendment will have a significant effect on the environmental; and (3) the MND reflects the City of San Luis Obispo’s independent judgment and analysis. SECTION 4. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end the provisions hereof are severable. SECTION 5. A summary of this ordinance, approved by the City Attorney, together with the names of the Council members voting for and against it, shall be published at least five days prior to its final passage, in the Tribune, a newspaper published and circulated in this City. This ordinance will go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the ____ day of ____________ 2016, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of 201 6, on the following roll call vote: AYES: NOES: ABSENT: ________ Mayor Jan Marx ATTEST: ____________________________ Lee Price, MMC Interim City Clerk APPROVED AS TO FORM: ____________________________ 14.a Packet Pg. 333 Attachment: a - Ordinance Introduction (1303 : SLO Brew Night Club Text Amendment) Ordinance No. _______________ (2016 Series) Page 3 O ______ 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 ______________, _________. ______________________________ Lee Price, MMC Interim City Clerk 14.a Packet Pg. 334 Attachment: a - Ordinance Introduction (1303 : SLO Brew Night Club Text Amendment) Ordinance No. _______________ (2016 Series) Page 4 O ______ TABLE 9 - USES ALLOWED BY ZONE - Continued P ermit Requirement by Zoning District Specific use Land Use AG C/OS R1 R2 R3 R4 PF O (1)C-N C-C C-D C-R C-T C-S M BP Regulations RECREATION, EDUCATION, & PUBLIC ASSEMBLY USES Club, lodge, private meeting hall D D A D A/D D D D Commercial recreation facility - Indoor PC D D D D D(12)PC D 17.08.060 Commercial recreation facility - Outdoor PC PC Educational conferences D D D D 17.08.010.C.6 Fitness/health facility D A D D PC A A D Golf Course PC Library, museum PC D D D D Library, branch facility D D D D Night club D D D D D D PC (14)Chapter 17.95 Park, playground D D A A A A D D A A A Public assembly facility PC D D D D PC Religious facility PC D D D D A D D D A D(7)D(7)D(7) PC PC School - College, university campus PC School - Elementary, middle, secondary PC PC D D PC D School - Specialized education/training PC A/D A/D A A A Special event D D D D D D D D D 17.08.010 Sports and active recreation facility PC PC PC PC Sports and entertainment assembly facility PC PC Studio - Art, dance, martial arts, music, etc.D D A/D A/D A PC A Theater PC(8)D D D D Chapter 17.95 Theater - Drive-in PC PC RESIDENTIAL USES Boarding/rooming house, dormitory PC D D D Chapter 17.20 Caretaker quarters A A A A A A A A A A A A A A A D Convents and monasteries PC A A D Fraternity, sorority PC PC High occupancy residential use D D Home occupation H H H H H H H H H H H H H H 17.08.090 Live/work units A A A A A 17.08.120 Mixed-use project A A A A A A PC PC 17.08.072 A A A A A A A A Mobile home park A A A A Multi-family dwellings A A A A D D A A A A A A A/D A/D A/D D A A A A A D A/D A/D D Residential hospice facility PC PC D PC PC D Rest home A A A A A D A/D A/D D Single-family dwellings A A A(2)A A A A D D Secondary dwelling units A A A A A Chapter 17.21 Work/live units D D 17.08.120 Key:A = Allowed D = Director's Use Permit approval required PC = Planning Commission Use Permit approval required A/D = Director's approval on ground floor, allowed on second floor or above H = Home Occupation Permit required Note:Footnotes affecting specific land uses follow the table. Mobile home as temporary residence at building site Residential care facilities - 6 or fewer residents Residential care facilities - 7 or more residents School - Boarding school, elementary, middle, secondary School - College, university - Satellite classroom facility EXHIBIT A 14.a Packet Pg. 335 Attachment: a - Ordinance Introduction (1303 : SLO Brew Night Club Text Amendment) Ordinance No. _______________ (2016 Series) Page 5 O ______ Notes to Table 9: 1. Ozone - All uses. A Use Permit is required for the conversion of residential structures to non-residential uses. In order to approve a Use Permit, the Director shall first find that: a. The location, orientation, height, and mass of new structures will not significantly affect privacy in nearby residential areas; and b. The project location or access arrangements will not significantly direct traffic to local st reets in nearby residential areas; and c. The project includes landscaping and yards that adequately separate parking and pedestrian circulation areas from sites in nearby residential areas. 2. R-1 zone - Multiple dwellings. Except for condominiums, the construction of more than one dwelling on a parcel in the R-1 zone requires Administrative Use Permit approval. R-1 density standards apply. 3. C-N zone - Limitations on floor area. A general retail use in the C-N zone shall not exceed a gross floor area of 2,000 square feet for each establishment, or a combined floor area of all general retail establishments within a shopping center of 25 percent of the total floor area in a shopping center with a gross floor area of 15,000 square feet or more; and shall not exceed 50 percent of the total floor area in a shopping center with a gross floor area of less than 15,000 square feet. The Administrative Use Permit may provide for exceptions to the floor area limitations above. For general retail uses with a floor area greater than 2,000 square feet on a parcel not located within a shopping center, an Administrative Use Permit shall be required to insure consistency with policies of the General Plan Land Use Element and compatibility with surrounding uses. 4. C-S and M zones - Required findings for offices. The approval of an office facility in the C-S or M zone shall require that the review authority first find that: a. The project will be compatible with existing and allowed land uses in the area; b. The project location or access arrangements will not significantly direct traffic to use local or collector streets in residential zones; c. The project will provide adequate mitigation to address potential impacts related to nois e, light and glare, and loss of privacy, among others, imposed by commercial activities on nearby residential areas, by using methods such as setbacks, landscaping, berming and fencing; d. The project will not preclude industrial or service commercial uses in areas especially suited for these uses when compared with offices; and e. The project will not create a shortage of C-S- or M-zoned land available for service commercial or industrial development. 5. C-R zone - Auto sound system installation. Auto sound installation services may be approved only as an accessory use to the retail sales of auto sound systems on the same site. Use Permit review shall consider parking space displacement, noise from the operation, and the appearance and visibility of the installation area. 6. Parking as a principal use. Use Permit approval may include deviations to otherwise applicable setback requirements and building height limits. A multi-level parking facility shall require the approval of a Use Permit by the Planning Commission. 7. Religious facilities. a. C-S zone requirements. Use Permit review shall consider that the C-S zone is primarily intended to accommodate uses not generally suited to other commercial zones because of noise, truck traffic, visual impacts and similar factors. A Use Permit may be approved only when the religious facility will not likely cause unreasonable compatibility problems with existing or likely EXHIBIT A 14.a Packet Pg. 336 Attachment: a - Ordinance Introduction (1303 : SLO Brew Night Club Text Amendment) Ordinance No. _______________ (2016 Series) Page 6 O ______ future service commercial uses in the vicinity. Use Permit conditions may include measures to mitigate incompatibility. b. C-T and M zone requirements. A religious facility use may be allowed only inside an existing building. 8. PF zone - Theaters. Only non-profit theaters are permitted. 9. Day care centers. Allowed by right where accessory to a church or school, or where an employer provides on-site child care to 14 or fewer children for the exclusive benefit of employees, providing the primary use meets City parking standards. 10. Groceries, Liquor, Specialty Foods in the CN Zone. In the C-N zone, grocery, liquor and specialty food stores less than 3,000 square feet are allowed. Such uses with a gross floor area between 3,000 and 5,000 square feet are allowed with the approval of an Administrative Use Pe rmit. Stores between 5,000 and 10,000 square feet may be approved by Planning Commission Use Permit. In order for a use permit to be approved by the Hearing Officer or by the Planning Commission, the deciding body must find that the proposed use is compatible with surrounding uses and the surrounding neighborhood, and that the use is consistent with the purpose and intent of the Neighborhood Commercial designation as discussed in the General Plan. 11. In order to approve a Medical Service use in the C-S or BP zones, the Hearing Officer must make the following findings: a) The proposed medical service is compatible with surrounding land uses. b) The proposed medical service is located along a street designated as an arterial or commercial collector in the Circulation Element and has convenient access to public transportation. c) The proposed medical service will not significantly increase traffic or create parking impacts in residential neighborhoods. d) The proposed medical service is consistent with the Airport Land Use Plan. e) The project will not preclude service commercial uses in areas especially suited for these uses when compared with medical services. f) The project site can accommodate the parking requirements of the proposed medical ser vice and will not result in other lease spaces being under -utilized because of a lack of available parking. 12. C-S zone - Required findings for Indoor Commercial Recreational Facilities. Commercial indoor recreational uses in the C-S zone shall not include less than 10,000 square feet gross floor area per establishment. The approval of an indoor commercial recreational facility in the C -S zone shall require that the review authority first find that: a) The proposed use will serve the community, in whole or in significant part, and the nature of the use requires a larger size in order to function; b) The project will be compatible with existing and allowed land uses in the area; c) The project location or access arrangements will not significant ly direct traffic to use local or collector streets in residential zones; d) The project will not preclude industrial or service commercial uses in areas especially suited for these uses when compared with recreational facilities; and EXHIBIT A 14.a Packet Pg. 337 Attachment: a - Ordinance Introduction (1303 : SLO Brew Night Club Text Amendment) Ordinance No. _______________ (2016 Series) Page 7 O ______ e) The project will not create a shortage of C-S -zoned land available for service commercial development. 13. Safe Parking. Safe parking is only allowed in the R-1, R-2, R-3 and R-4 zones when accessory to a public assembly use, such as a club, lodge, private meetin g hall or religious facility. Safe parking is prohibited as a primary use in the R-1, R-2, R-3 or R-4 zones and in all applicable zoning districts on properties that contain residential uses as the primary use. 14. Night club use in the BP zone. Night clubs shall be allowed only in the BP zone of the Airport Area Specific Plan. Refer to the Allowed uses, Table 4.3, of the Airport Area Specific Plan for more information. 14.a Packet Pg. 338 Attachment: a - Ordinance Introduction (1303 : SLO Brew Night Club Text Amendment) RESOLUTION NO. (2016 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TABLE 4.3 OF THE AIRPORT AREA SPECIFIC PLAN ALLOWING A NIGHT CLUB USE WITHIN THE BUSINESS PARK ZONE, APPROVING A NIGHT CLUB USE PERMIT WITH OFF-SITE PARKING IN THE BUSINESS PARK ZONE AT 855 AEROVISTA PLACE AND ADOPTING A MITIGATED NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED APRIL 19, 2016 (CODE-1316-2015) WHEREAS, the applicant, on May 5, 2015, submitted an application to amend the Airport Area Specific Plan and for a use permit to allow a night club (live indoor/outdoor entertainment) with off-site parking at 855 Aerovista Place; and WHEREAS, the Airport Land Use Commission of the County of San Luis Obispo conducted a public hearing in Board of Supervisors Chambers, County Government Center, 1055 Monterey Street, Room D170, San Luis Obispo, California, on December 16, 2015, and recommended approval of amendments to the Airport Area Specific Plan; and WHEREAS, the Planning Commission 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 10, 2016, and recommended approval of the amendments to the Airport Area Specific Plan and night club use permit with off-site parking within the Business Park zone at 855 Aerovista Place; and WHEREAS, the City Council on April 19, 2016, considered the request to amend the Airport Area Specific Plan to allow a night club use within the Business Park zone and for a night club use permit with off-site parking within the Business Park zone at 855 Aerovista Place (CODE-1316-2015); and, WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicants, interested parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings: Airport Area Specific Plan 1. The Amendments to the Airport Area Specific Plan conditionally permitting a night club use within the Business Park Zone is consistent with the General Plan policies and will not be detrimental to the health, safety and welfare of the City. Night club 14.b Packet Pg. 339 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) Resolution No. _______________ (2016 Series) Page 2 R ______ 2. As conditioned, the use will not harm the general health, safety, and welfare of people living or working in the vicinity because conditions on the Use Permit approval will minimize noise impacts, impacts to police resources, and there are no nearby residential uses. 3. Locating a live indoor/outdoor entertainment use outside of the downtown is appropriate because currently no sites exist downtown that would allow for live indoor/outdoor entertainment for a large number of people without impacting other uses. The location of a night club within the business park zone, near the airport, is appropriate because the use is not impacted by airport noise and is not located near residential uses. 4. As conditioned, the proposed project is consistent with Section 4.2.1 of the Airport Area Specific Plan because the proposed use is supportive of the primary activity and part of the promotion of the SLO Brew Production Facility. 5. As conditioned, the project is consistent with the Airport Land Use Plan. 6. The property owner has agreed to conditions of approval that place restrictions on their use of the property to insure that nuisances and significant burdens on police resources do not occur. 7. As conditioned, the proposed use is compatible with the project site and with existing and potential uses in the vicinity which include offices, a gym, and a beer brewing facility. Conditions of approval have been adopted to minimize potential disturbances to neighboring properties. Off-site Parking 8. Off-site parking is acceptable at this location because proposed off-site parking is within a zone where the use is allowed, within 300 feet of the use, and is not separated from the use by any feature that would make pedestrian access inconvenient or hazardous. 9. Off-site parking is acceptable at this location because the site on which the parking is located is owned by the party controlling the use. SECTION 2. Amendment of Airport Area Specific Plan. Table 4.3 of the Airport Area Specific Plan is hereby amended as set forth in Exhibit “A” attached hereto and incorporated herein by this reference. SECTION 3. Action on Use Permit. The City Council hereby approves the use permit for a night club use at 855 Aerovista Place (CODE-1316-2015), based on the above and subject to the following conditions: Planning Division 1. The applicant shall defend, indemnify and hold harmless the City and/or its agents, 14.b Packet Pg. 340 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) Resolution No. _______________ (2016 Series) Page 3 R ______ officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this project, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”). The City shall promptly notify the applicant of any Indemnified Claim upon being presented with the Indemnified Claim and City shall fully cooperate in the defense against an Indemnified Claim. 2. Hours of operation for the proposed use shall not be outside the hours from 6:00 p.m. to 11:00 p.m., Fridays and 10:00 a.m. to 11:00 p.m. Saturday and Sundays. Changes in the hours of operation shall require an amendment to this use permit or require an additional use permit as determined by the Community Development Director. 3. An off-site parking agreement that satisfies parking requirements shall be signed and recorded to the satisfaction of the City Attorney and Community Development Director prior to occupancy. A minimum of 61 parking spaces shall be provided in an off-site parking location located within 300 feet of the subject location. 4. If parking availability becomes impacted, the City retains the right to require additional parking mitigation measures, including but not limited to revocation of this use permit, limiting occupancy loads or additional off-site parking agreements with adjacent property owners. 5. No wedding ceremonies or other similar noise-sensitive events and/or activities are allowed on the outdoor portions of the property, and any indoor uses must comply with applicable density restrictions within the Airport Land Use Plan. 6. The combination of amplified music, voice and crowd noise on the subject site shall not exceed 90 dBA at 20 feet from the speakers as specified in the Noise Analysis prepared by David Lord, which exceeds the City’s Noise Ordinance requirement for the use. All outdoor speakers shall be oriented inward to the site away from residences to the east of Broad Street at all times. 7. The patio will be maintained in an orderly manner, and will be properly supervised and controlled at all times to prevent alcoholic beverages from leaving the area. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the applicant. 8. The applicant is responsible at all times for verifying the legal age of patrons, for monitoring patrons’ on site alcohol consumption, and for declining to serve alcohol to patrons who demonstrate signs of intoxication or impairment associated with alcohol consumption, based on training that is to be provided to all staff. 9. The night club shall not exceed a maximum number of 600 persons in attendance to any event. 10. To address complaints and minimize the need for police response to minor issues, an owner or manager shall be on premises at all times, and shall be available to be contacted 14.b Packet Pg. 341 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) Resolution No. _______________ (2016 Series) Page 4 R ______ by a City representative and/or adjacent property owner or tenant. The applicant shall provide and regularly update contact information to the City’s Police, Fire, and Community Development Departments and adjacent property owners and tenants. 11. All employees shall attend ABC LEAD Training or equivalent training. 12. The applicant shall be responsible for an on-going security/safety plan that incorporates regular training to accommodate changes in personnel. The applicant shall be responsible for managing outdoor crowds and queuing as a result of this use and the site shall be maintained in a neat and orderly manner at all times. 13. The applicant shall manage/patrol outdoor crowds and queuing as a result of this use. An orderly line of patrons awaiting entry that does not block public access on, or use of, the sidewalk shall be maintained. This queue shall not block egress from any exits or the patio seating area exit. 14. Business shall be conducted in a manner that will not violate any provisions of the California Alcoholic Beverage Control Act, prohibiting the sale of alcohol to minors (§25658), maintaining the public health, morals, convenience, and safety (§25601); and taking reasonable steps to correct any objectionable conditions on the premises and immediately adjacent to the premises (§24200). 15. The maximum posted occupant load for each space shall not be exceeded at any time. This permit is strictly limited to allow only the occupant load for the premises as approved by the City of San Luis Obispo Fire Department. Occupant loads approved by the City of San Luis Obispo Fire Department shall be posted at all times. 16. This Use Permit shall be reviewed at a Planning Commission hearing if the City receives substantiated written complaints from any citizen, Code Enforcement Officer, or Police Department employee, which includes information and/or evidence supporting a conclusion that a violation of this Use Permit, or of City ordinances or regulations applicable to the property or the operation of the business, has occurred. At the time of the Use Permit review, to insure on-going compatibility of the uses on the project site, conditions of approval may be added, deleted, modified, or the Use Permit may be revoked. 17. Upon a significant change to the business as identified in the applicant’s project description, final security plan, and Staff Report dated February 10, 2016 the Use Permit shall be reviewed by the Community Development Director for compliance with conditions of approval, or to determine whether a modification of the Use Permit is necessary. 18. No structure, landscaping, apparatus, or other feature, whether temporary or permanent in nature shall constitute an obstruction to air navigation or a hazard to air navigation, as defined by the ALUP. 19. Any use is prohibited that may entail characteristics which would potentially interfere 14.b Packet Pg. 342 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) Resolution No. _______________ (2016 Series) Page 5 R ______ with the takeoff, landing, or maneuvering of aircraft at the Airport, including:  creation of electrical interference with navigation signals or radio communication  between the aircraft and airport;  lighting which is difficult to distinguish from airport lighting;  glare in the eyes of pilots using the airport;  uses which attract birds and create bird strike hazards;  uses which produce visually significant quantities of smoke; and  uses which entail a risk of physical injury to operators or passengers of aircraft (e.g., exterior laser light demonstrations or shows). 20. Avigation easements will be recorded for each property developed within the area included in the proposed local action prior to the issuance of any building permit or conditional use permit. 21. All owners, potential purchasers, occupants (whether as owners or renters), and potential occupants (whether as owners or renters) will receive full and accurate disclosure concerning the noise, safety, or overflight impacts associated with airport operations prior to entering any contractual obligation to purchase, lease, rent, or otherwise occupy any property or properties within the airport area. 22. This use permit for a Night Club use at 855 Aerovista Place shall not be effective until the effective date of Ordinance No. ___________ amending Title 17 of the City’s Zoning Code conditionally permitting Night Club land uses within the Business Park zone of the Airport Area Specific Plan Area. Transportation Department 23. Due to peak hour congestion levels along the Broad Street Corridor events shall not be permitted Friday between the hours of 4:00 pm and 6:00 pm. 24. Vehicle trips associated with the subject property shall be less than 35 per hour (the base trip generation for the brewery manufacturing and restaurant use excluding the event use) on Fridays between the hours of 4:00 p.m. to 6:00 p.m. If the number of trips exceeds the 35 trips per hour threshold during this period, then the events permitted under this use permit related to the night club use shall be further prohibited on Friday night up until 8:00 pm or prohibited on Friday nights altogether, at the discretion of the Public Works Director. Building Department 25. The project requires a building permit for change of use and/or occupancy. Additional requirements will be included when an application for that building permit is submitted for review. Fire Department 26. The building permit submitted for the change of use and/or occupancy shall show 14.b Packet Pg. 343 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) Resolution No. _______________ (2016 Series) Page 6 R ______ occupancy load calculations for nightclub/music use and for other proposed uses of the building room(s) use based on 5, 7, and 15 square feet per occupant. Occupancy load calculations shall be submitted by a state-licensed architect. 27. The applicant shall submit a written safety policy/plan for maintaining the maximum occupant load in the assembly areas of the building (to avoid overcrowding) for any nightclub/music use. 28. The building permit submitted for the change of use and/or occupancy shall clarify if this mezzanine is proposed for a B occupancy or an Assembly occupancy (mezzanine on east side of building specifies an Assembly occupancy with only one stairway). 29. Any/all changes to the current/proposed building plans shall be in compliance with the 2013 California Building Code, including any required occupancy separations. SECTION 4. Environmental Determination. The City Council has considered the proposed Mitigated Negative Declaration of Environmental Impact (“MND”) together with all comments received during the public review period, and, on the basis of the whole record before it, hereby finds that (1) potentially significant environmental effects were identified but mitigation measures to be included avoid or reduce the effects to a point where clearly no significant effect on the environmental would occur; (2) there is no substantial evidence that the project will have a significant effect on the environment; and (3) the MND reflects the City of San Luis Obispo’s independent judgment and analysis. Based on the foregoing, the Council hereby adopts the proposed MND with incorporation of the following mitigation measures and monitoring programs: Transportation/Traffic Mitigation Measure T-1: Night club use permit events shall not be permitted on Fridays between the hours of 4:00 pm and 6:00 pm.  Monitoring Plan, T-1: The hours of operation shall be included as part of the business license application and will be incorporated as part of the conditions of approval for the use permit. City staff will periodically inspect the site for continued compliance with the above mitigation measures. Mitigation Measure T-2: Vehicle trips associated with the subject property shall be less than 35 per hour (the base trip generation for the brewery manufacturing and restaurant use excluding the event use) on Fridays between the hours of 4:00 p.m. to 6:00 p.m. If the number of trips exceeds the 35 trips per hour threshold during this period, then the events permitted under this use permit related to the night club use shall be further prohibited on Friday night up until 8:00 pm or prohibited on Friday nights altogether, at the discretion of the Public Works Director.  Monitoring Plan, T-2: Within one year of the effective date of this use permit and annually thereafter, City staff will periodically conduct traffic counts during Friday events to determine the number of trips associated with the Subject property on Friday night between the hours of 4:00 p.m. to 6:00 p.m. 14.b Packet Pg. 344 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) Resolution No. _______________ (2016 Series) Page 7 R ______  . Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was adopted this ____ day of ___________________, 2016. ____________________________________ Mayor Jan Marx ATTEST: ____________________________________ Lee Price, MMC Interim 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 ______________, _________. ______________________________ Lee Price, MMC Interim City Clerk 14.b Packet Pg. 345 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) Table 4.3 – Allowed Uses Key: A = Allowed D = Allowed by Administrative Use Permit PC = Allowed by Planning Commission Use Permit Footnotes (see end of table) Land Use Zoning District PF C-S M BP RECREATION, EDUCATION, & PUBLIC ASSEMBLY USES Bar/tavern D D D1 Club, lodge, private meeting hall D Commercial recreation facility - Indoor PC PC D Commercial recreation facility – Outdoor PC PC Fitness/health facility A A A1 Night club D PC3,9 Park, playground D Public assembly facility PC PC Religious facility8 D D2 School – Specialized education/training8 A A D Sports and active recreation facility PC PC PC Sports and entertainment assembly facility PC PC Land Use Zoning District PF C-S M BP RESIDENTIAL USES Caretaker quarters7 A A A D EXHIBIT A 14.b Packet Pg. 346 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) Resolution No. _______________ (2016 Series) Page 2 R ______ Numbered Notes to Table 4.3: 1. These activities are considered secondary uses for business parks. Within a development project site, their combined floor area shall not exceed 25 percent of the total floor area. Some are also subject to limits on individual floor area, as shown in the body of the table. Floor area limitations shall not apply to bank headquarters. 2. Use permit review shall consider that the C-S zone is primarily intended to accommodate uses not generally suited to other commercial zones because of noise, truck traffic, visual impacts and similar factors. A use permit may be approved only when the church will not likely cause unreasonable compatibility problems with existing or likely future service commercial uses in the vicinity. Use permit conditions may include measures to mitigate incompatibility. 3. In the C-S zone, nightclubs must contain a minimum of four thousand five hundred square feet of floor area. In the BP zone, no minimum floor area is required for nightclubs. The required use permit process for both the C-S and BP zones shall address parking, neighborhood compatibility and security issues. 4. In order to approve a Medical Service use in the C-S or BP zones, the Hearing Officer must make the following findings: a) The proposed medical service is compatible with surrounding land uses. b) The proposed medical service is located along a street designated as an arterial or commercial collector in the Circulation Element and has convenient access to public transportation. c) The proposed medical service will not significantly increase traffic or create parking impacts in residential neighborhoods. d) The proposed medical service is consistent with the Airport Land Use Plan. e) The project will not preclude service commercial uses in areas especially suited for these uses when compared with medical services. f) The project site can accommodate the parking requirements of the proposed medical service and will not result in other lease spaces being under-utilized because of a lack of available parking. 5. Allowed by right only in the S-1c and S-2 aviation safety areas (as defined in the ALUP), where an employer provides on-site child care to 14 or fewer children for the exclusive benefit of employees. Larger facilities for employees may be approved by the Planning Commission, if allowed by the Airport Land Use Commission. 6. Broadcast studios are allowed by right except that an administrative use permit is required to permit any on-site antennas, dishes, or transmission towers; or any radio, microwave other type of airbound transmission from the project site or any other site within the Airport Area. 7. Caretakers quarters shall have a maximum floor area of 1,000 square feet and shall not be allowed in aviation safety area S -1a or the runway protection zone, as defined in the ALUP. 8. These uses are identified in the San Luis Obispo County Regional Airport Land Use Plan as noise-sensitive, specific sound-attenuation requirements may apply. Refer to the ALUP for more information. EXHIBIT A 14.b Packet Pg. 347 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) Resolution No. _______________ (2016 Series) Page 2 R ______ 9. Nightclub uses proposed in the BP zone shall meet the standards and requirements of the Airport Land Use Plan, and shall be referred to the Airport Land Use Commission for a determination of consistency with the Airport Land Use Plan. All tall structures shall be reviewed by the Air Traffic Division of the FAA regional office having jurisdiction over San Luis Obispo County to determine compliance with the provisions of FAR Part 77. In addition, applicable construction activities must be reported via FAA Form 7460-1 at least 30 days before proposed construction or application for building permit. EXHIBIT A 14.b Packet Pg. 348 Attachment: b - Resolution (1303 : SLO Brew Night Club Text Amendment) 14.c Packet Pg. 349 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) 14.c Packet Pg. 350 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) City of San Luis Obispo Zoning Regulations March 2015 TABLE 9 - USES ALLOWED BY ZONE - Continued Permit Requirement by Zoning District Specific use Land Use AG C/OS R1 R2 R3 R4 PF O (1) C-N C-C C-D C-R C-T C-S M BP Regulations RECREATION, EDUCATION, & PUBLIC ASSEMBLY USES Club, lodge, private meeting hall D D A D A/D D D D Commercial recreation facility - Indoor PC D D D D D(12) PC D 17.08.060 Commercial recreation facility - Outdoor PC PC Educational conferences D D D D 17.08.010.C.6 Fitness/health facility DADDPCAAD Golf Course PC Library, museum PC D D D D Library, branch facility DDDD Night club D D D D D D Chapter 17.95 Park, playground D D A A A A D D A A A Public assembly facility PC D D D D PC Religious facility PC D D D D A D D D A D(7) D(7) D(7) PC PC School - College, university campus PC School - Elementary, middle, secondary PC PC D D PC D School - Specialized education/training PC A/D A/D A A A Special event DDDDDDDDD 17.08.010 Sports and active recreation facility PC PC PC PC Sports and entertainment assembly facility PC PC Studio - Art, dance, martial arts, music, etc.D D A/D A/D A PC A Theater PC(8)D D D D Chapter 17.95 Theater - Drive-in PC PC RESIDENTIAL USES Boarding/rooming house, dormitory PC D D D Chapter 17.20 Caretaker quarters A A A A A A A A A A A A A A A D Convents and monasteries PC A A D Fraternity, sorority PC PC High occupancy residential use D D Home occupation H H H H H H H H H H H H H H 17.08.090 Live/work units A A A A A 17.08.120 Mixed-use project A A A A A A PC PC 17.08.072 AAAAAA AA Mobile home park A A A A Multi-family dwellings A A A A D D A A A A A A A/D A/D A/D D A A A A A D A/D A/D D Residential hospice facility PC PC D PC PC D Rest home A A A A A D A/D A/D D Single-family dwellings A A A(2) A A A A D D Secondary dwelling units A A A A A Chapter 17.21 Work/live units D D 17.08.120 Key:A = Allowed D = Director's Use Permit approval required PC = Planning Commission Use Permit approval required A/D = Director's approval on ground floor, allowed on second floor or above H = Home Occupation Permit required Note:Footnotes affecting specific land uses follow the table. Page 102 Residential care facilities - 6 or fewer residents Residential care facilities - 7 or more residents School - Boarding school, elementary, middle, secondary School - College, university - Satellite classroom facility Mobile home as temporary residence at building site '  EXHIBIT A 14.c Packet Pg. 351 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) City of San Luis Obispo Zoning Regulations March 2015 Page 106 Notes to Table 9: 1. Ozone - All uses.A Use Permit is required for the conversion of residential structures to non-residential uses. In order to approve a Use Permit, the Director shall first find that: a. The location, orientation, height, and mass of new structures will not significantly affect privacy in nearby residential areas; and b. The project location or access arrangements will not significantly direct traffic to local streets in nearby residential areas; and c. The project includes landscaping and yards that adequately separate parking and pedestrian circulation areas from sites in nearby residential areas. 2. R-1 zone - Multiple dwellings.Except for condominiums, the construction of more than one dwelling on a parcel in the R-1 zone requires Administrative Use Permit approval. R-1 density standards apply. 3. C-N zone - Limitations on floor area.A general retail use in the C-N zone shall not exceed a gross floor area of 2,000 square feet for each establishment, or a combined floor area of all general retail establishments within a shopping center of 25 percent of the total floor area in a shopping center with a gross floor area of 15,000 square feet or more; and shall not exceed 50 percent of the total floor area in a shopping center with a gross floor area of less than 15,000 square feet. The Administrative Use Permit may provide for exceptions to the floor area limitations above. For general retail uses with a floor area greater than 2,000 square feet on a parcel not located within a shopping center, an Administrative Use Permit shall be required to insure consistency with policies of the General Plan Land Use Element and compatibility with surrounding uses. 4. C-S and M zones - Required findings for offices.The approval of an office facility in the C-S or M zone shall require that the review authority first find that: a. The project will be compatible with existing and allowed land uses in the area; b. The project location or access arrangements will not significantly direct traffic to use local or collector streets in residential zones; c. The project will provide adequate mitigation to address potential impacts related to noise, light and glare, and loss of privacy, among others, imposed by commercial activities on nearby residential areas, by using methods such as setbacks, landscaping, berming and fencing; d. The project will not preclude industrial or service commercial uses in areas especially suited for these uses when compared with offices; and e. The project will not create a shortage of C-S- or M-zoned land available for service commercial or industrial development. 5. C-R zone - Auto sound system installation.Auto sound installation services may be approved only as an accessory use to the retail sales of auto sound systems on the same site. Use Permit review shall consider parking space displacement, noise from the operation, and the appearance and visibility of the installation area. 6. Parking as a principal use.Use Permit approval may include deviations to otherwise applicable setback requirements and building height limits. A multi-level parking facility shall require the approval of a Use Permit by the Planning Commission. 7. Religious facilities. EXHIBIT A 14.c Packet Pg. 352 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) City of San Luis Obispo March 2015 Zoning Regulations Page 107 a. C-S zone requirements.Use Permit review shall consider that the C-S zone is primarily intended to accommodate uses not generally suited to other commercial zones because of noise, truck traffic, visual impacts and similar factors. A Use Permit may be approved only when the religious facility will not likely cause unreasonable compatibility problems with existing or likely future service commercial uses in the vicinity. Use Permit conditions may include measures to mitigate incompatibility. b. C-T and M zone requirements.A religious facility use may be allowed only inside an existing building. 8. PF zone - Theaters.Only non-profit theaters are permitted. 9. Day care centers.Allowed by right where accessory to a church or school, or where an employer provides on-site child care to 14 or fewer children for the exclusive benefit of employees, providing the primary use meets City parking standards. 10. Groceries, Liquor, Specialty Foods in the CN Zone.In the C-N zone, grocery, liquor and specialty food stores less than 3,000 square feet are allowed. Such uses with a gross floor area between 3,000 and 5,000 square feet are allowed with the approval of an Administrative Use Permit. Stores between 5,000 and 10,000 square feet may be approved by Planning Commission Use Perm it. In order for a use permit to be approved by the Hearing Officer or by the Planning Commission, the deciding body must find that the proposed use is compatible with surrounding uses and the surrounding neighborhood, and that the use is consistent with the purpose and intent of the Neighborhood Commercial designation as discussed in the General Plan. 11.In order to approve a Medical Service use in the C-S or BP zones, the Hearing Officer must make the following findings: a) The proposed medical service is compatible with surrounding land uses. b) The proposed medical service is located along a street designated as an arterial or commercial collector in the Circulation Element and has convenient access to public transportation. c) The proposed medical service will not significantly increase traffic or create parking impacts in residential neighborhoods. d) The proposed medical service is consistent with the Airport Land Use Plan. e) The project will not preclude service commercial uses in areas especially suited for these uses when compared with medical services. f) The project site can accommodate the parking requirements of the proposed medical service and will not result in other lease spaces being under-utilized because of a lack of available parking. 12. C-S zone - Required findings for Indoor Commercial Recreational Facilities. Commercial indoor recreational uses in the C-S zone shall not include less than 10,000 square feet gross floor area per establishment. The approval of an indoor commercial recreational facility in the C-S zone shall require that the review authority first find that: a) The proposed use will serve the community, in whole or in significant part, and the nature of the use requires a larger size in order to function; EXHIBIT A 14.c Packet Pg. 353 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) City of San Luis Obispo Zoning Regulations March 2015 Page 108 b) The project will be compatible with existing and allowed land uses in the area; c) The project location or access arrangements will not significantly direct traffic to use local or collector streets in residential zones; d) The project will not preclude industrial or service commercial uses in areas especially suited for these uses when compared with recreational facilities; and e) The project will not create a shortage of C-S -zoned land available for service commercial development. 13. Safe Parking. Safe parking is only allowed in the R-1, R-2, R-3 and R-4 zones when accessory to a public assembly use, such as a club, lodge, private meeting hall or religious facility. Safe parking is prohibited as a primary use in the R-1, R-2, R-3 or R-4 zones and in all applicable zoning districts on properties that contain residential uses as the primary use. 1LJKWFOXEXVHLQWKH%3]RQH1LJKWFOXEVVKDOOEHDOORZHGRQO\LQWKH%3]RQHRIWKH $LUSRUW$UHD6SHFLILF3ODQ5HIHUWRWKH$OORZHGXVHV7DEOHRIWKH$LUSRUW$UHD 6SHFLILF3ODQIRUPRUHLQIRUPDWLRQ EXHIBIT A 14.c Packet Pg. 354 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) LAND USE | 4-15 Table 4.3 – Allowed Uses Key: A = Allowed D = Allowed by Administrative Use Permit PC = Allowed by Planning Commission Use Permit Footnotes (see end of table) Land Use Zoning District PF C-S M BP RECREATION, EDUCATION, & PUBLIC ASSEMBLY USES Bar/tavern D D D1 Club, lodge, private meeting hall D Commercial recreation facility - Indoor PC PC D Commercial recreation facility – Outdoor PC PC Fitness/health facility A A A1 Night club D Park, playground D Public assembly facility PC PC Religious facility8 D D2 School – Specialized education/training8 A A D Sports and active recreation facility PC PC PC Sports and entertainment assembly facility PC PC RESIDENTIAL USES Caretaker quarters A A A D D3,9 EXHIBIT B14.c Packet Pg. 355 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text LAND USE | 4-19 Numbered Notes to Table 4.3: 1.These activities are considered secondary uses for business parks. Within a development project site, their combined floor area shall not exceed 25 percent of the total floor area. Some are also subject to limits on individual floor area, as shown in the body of the table. Floor area limitations shall not apply to bank headquarters. 2.Use permit review shall consider that the C-S zone is primarily intended to accommodate uses not generally suited to other commercial zones because of noise, truck traffic, visual impacts and similar factors. A use permit may be approved only when the church will not likely cause unreasonable compatibility problems with existing or likely future service commercial uses in the vicinity. Use permit conditions may include measures to mitigate incompatibility. 3.In the C-S zone, nightclubs must contain a minimum of four thousand five hundred square feet of floor area. In the BP zone, no minimum floor area is required for nightclubs. The required use permit process for both the C-S and BP zones shall address parking, neighborhood compatibility and security issues. 4.In order to approve a Medical Service use in the C-S or BP zones, the Hearing Officer must make the following findings: a)The proposed medical service is compatible with surrounding land uses. b)The proposed medical service is located along a street designated as an arterial or commercial collector in the Circulation Element and has convenient access to public transportation. c) The proposed medical service will not significantly increase traffic or create parking impacts in residential neighborhoods. d)The proposed medical service is consistent with the Airport Land Use Plan. e)The project will not preclude service commercial uses in areas especially suited for these uses when compared with medical services. f)The project site can accommodate the parking requirements of the proposed medical service and will not result in other lease spaces being under-utilized because of a lack of available parking. 5.Allowed by right only in the S-1c and S-2 aviation safety areas (as defined in the ALUP), where an employer provides on-site child care to 14 or fewer children for the exclusive benefit of employees. Larger facilities for employees may be approved by the Planning Commission, if allowed by the Airport Land Use Commission. 6.Broadcast studios are allowed by right except that an administrative use permit is required to permit any on-site antennas, dishes, or transmission towers; or any radio, microwave or other type of airbound transmission from the project site or any other site within the Airport Area. 7.Caretakers quarters shall have a maximum floor area of 1,000 square feet and shall not be allowed in aviation safety area S-1a or the runway protection zone, as defined in the ALUP. 8.These uses are identified in the San Luis Obispo County Regional Airport Land Use Plan as noise-sensitive, specific sound-attenuation requirements may apply. Refer to the ALUP for more information. 9.Nightclub uses proposed within the BP zone shall meet the standards and requirements of the Airport Land Use Plan, and shall be referred to the Airport Land Use Commission for a determination of consistency with the Airport Land Use Plan.EXHIBIT B14.c Packet Pg. 356 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text 14.c Packet Pg. 357 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) 14.c Packet Pg. 358 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) 14.c Packet Pg. 359 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) 14.c Packet Pg. 360 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) 14.c Packet Pg. 361 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) 14.c Packet Pg. 362 Attachment: c - Planning Commission Resolutions 2-10-16 (1303 : SLO Brew Night Club Text Amendment) SAN LUIS OBISPO COUNTY AIRPORT LAND USE COMMISSION Chairman: Roger Oxborrow Commissioners: William (Bill) Borgsmiller Michael Cripe Craig Piper John Eichler Allen Settle Erich Schaefer NOTICE OF AIRPORT LAND USE COMMISSION ACTION ALUC 2015-004 HEARING DATE: December 16, 2015 RECOMMENDATION TO: City of San Luis Obispo SUBJECT: A mandatory referral by the City of San Luis Obispo (City) for a determination of consistency or inconsistency for the SLO Brew Production Facility Zoning Text Amendment and Specific Plan Amendment to add "Night Club" as an allowed use in the Business Park Zone. On December 16, 2015, the Airport Land Use Commission determined the above referenced project Consistent with the San Luis Obispo County Regional Airport Land Use Plan (ALUP) and referred it back to the City of San Luis Obispo, Rachel Cohen, Project Manager, on the basis the Findings and Revised Conditions in the staff report. If you have any questions regarding this matter, please contact me at (805) 781-5718. Sincerely, Nicole Retana, Secretary Airport Land Use Commission (Planning Department Use Only) Enclosed: _2L Airport Land Use Commission Staff Report 976 OSOS STREET, ROOM 300 •SAN LUIS OBISPO• CALIFORNIA 93408 • (805) 781-5600 • TIY /TDD RELAY -711 planning@co.slo.ca.us • FAX: (805) 781-1242 • HTTP://www.slocounty.ca.gov/planning.htm 14.d Packet Pg. 363 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) STAFF REPORT SAN LUIS OBISPO COUNTY AIRPORT LAND USE COMMISSION DATE: DECEMBER 16, 2015 TO: AIRPORT LAND USE COMMISSION (ALUC) FROM: BRIAN PEDROTTI, AIRPORTS PLANNER, COUNTY PLANNING AND BUILDING REFERRING AGENCY: CITY OF SAN LUIS OBISPO APPLICANT: SLO BREW PRODUCTION FACILITY CITY FILE NUMBER: CODE-1316-2015 PROJECT MANAGER: RACHEL COHEN, CITY OF SLO SUBJECT: HEARING TO CONSIDER A MANDATORY REFERRAL BY THE CITY OF SAN LUIS OBISPO (CITY) FOR A DETERMINATION OF CONSISTENCY OR INCONSISTENCY FOR THE SLO BREW PRODUCTION FACILITY ZONING TEXT AMENDMENT AND SPECIFIC PLAN AMENDMENT TO ADD "NIGHT CLUB" AS AN ALLOWED USE IN THE BUSINESS PARK ZONE. THE PURPOSE OF THE AMENDMENT IS TO ALLOW LIVE OUTDOOR ENTERTAINMENT AT THE SLO BREWING PRODUCTION FACILITY IN THE AEROVISTA BUSINESS PARK. LOCATION: THE PROPOSAL APPLIES TO THE BUSINESS PARK ZONE WITHIN THE AIRPORT AREA SPECIFIC PLAN OF THE CITY OF SAN LUIS OBISPO, INCLUDING AREAS WEST OF HIGHWAY 227 AND AROUND TANK FARM ROAD, AS WELL AS THE SAN LUIS RANCH PROPERTY. THE SPECIFIC PROPOSAL SITE IS A 3.49-ACRE PROPERTY (APN: 053-412-022) LOCATED AT 855 AEROVISTA PLACE WITHIN THE CITY OF SAN LUIS OBISPO, WITHIN THE AEROVISTA BUSINESS PARK, AND APPROXIMATELY 300 FEET FROM THE INTERSECTION OF AEROVISTA PLACE AND HIGHWAY 227. THE PROPERTY IS WITHIN THE BUSINESS PARK ZONE. THE PROPOSED PROJECT IS LOCATED IN THE SAN LUIS OBISPO COUNTY REGIONAL AIRPORT LAND USE PLAN (ALUP)-AVIATION SAFETY AREAS S-1c. RECOMMENDATION: Recommend a determination of consistency to the City of San Luis Obispo for the proposed Zoning Text Amendment and Specific Plan Amendment to add "night club" as an allowed use in the Business Park Zone applicable only to the SLO Brewing Facility Project Site in accordance with Section 2. 7 of the ALUP and subject to the eight conditions of approval set forth on pages and 7 and 8 of this report, and that future "night club" uses in all other areas of the AASP Business Park Zone shall be required to meet the standards and requirements of the Airport Land Use Plan and shall be referred to the Airport Land Use Commission for a determination of consistency with the Airport Land Use Plan. Page 1of9 j._· 14.d Packet Pg. 364 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) Finding(s): 1. The proposed amendment to add "night club" to the BP zone is consistent with General Land Use Policy G-3, because the project is consistent with the applicable Specific Land Use Policies for Noise and Safety with conditions of approval that require specific siting of the use and referral to the Airport Land Use Commission for future proposals. An amendment to add "night club" to the specific SLO Brewing Facility property (APN: 053:. 412-022) is consistent with the General Land Use policies because all information required for review has been provided by the referring agency; and the specific project does not present specific incompatibilities to the continued economic vitality and efficient operation of the Airport with respect to safety, noise, overflight or obstacle clearance. 2. The proposed amendment to add "night club" to the BP zone is consistent with the Specific Land Use Policies for Noise because conditions of approval are included that require that future development proposals are referred to the ALUC in all portions of the Business Park Zone. An amendment to add "night club" to the specific SLO Brewing Facility property (APN: 053-412-022) is consistent with the Specific Land Use Policies for Noise because although the use is inconsistent with the strict application of the policies, the proposed individual project presents a unique circumstance whereby live outdoor music associated with a brewery involves sound amplification and the expectation of higher decibel levels among the outdoor seated patrons. Additionally, noise-sensitive uses such as wedding ceremonies are restricted in the conditions of approval. 3. The proposed amendment to add "night club" to the BP zone is consistent with the Specific Land Use Policies for Safety because the density of future nonresidential development with a proposed "night club" use will be required to conform to the ALUP. An amendment to add "night club" to the specific SLO Brewing Facility property (APN: 053-412-022) is consistent with the Specific Land Use Policies for Safety because 1) the project is consistent with the 120 person/acre maximum density of non-residential use in Table 7, and 2) although the use is inconsistent with the strict application of Table 8, the proposed individual project presents a unique circumstance whereby the maximum attendance of 600 people is anticipated to be congregated both inside and outside within the larger 3.49 acre site during live outdoor music events, with a non-residential land use density significantly less than applied in Table 8. 4. As required by the applicable Specific Land Use Policies for Airspace Protection, the proposed amendment to add "night club" to the BP zone does not approve any specific development. An amendment to add "night club" to the specific SLO Brewing Facility property (APN: 053-412-022) does not allow development to exceed 200 feet above ground level; obstruct the surface of a takeoff and landing area or any imaginary surface established under Section77.25 or 77.29 of the Federal Aviation Regulations; or allow any Page 2of9 14.d Packet Pg. 365 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) structure, landscaping, glare, apparatus, or other feature, whether temporary or permanent in nature to constitute an obstruction to air navigation or a hazard to air navigation. 5. As required by the applicable Specific Land Use Policies for Overflight, the proposed amendment to add "night club" to the BP zone is consistent with the overflight policies of the ALUP to ensure that potential and prospective airport area land users are provided with sufficient information on the presence and activity of the Airport and associated noise and safety impacts in order for them to make an informed decision as to whether or not they wish to live and/or work in the Airport area. The majority of property in the BP zone, including the site of the specific proposed brewery, is adjacent to the airport and is not located within any flight paths. Individual projects will be required to provide avigation easements and full and accurate disclosure of airport operations. 6. The proposed amendment to add "night club" to the BP zone will not exceed the maximum building coverage nor increase densities greater than what is allowed per Table 7 of the ALUP, because the addition of "night club" does not propose any specific development. An amendment to add "night club" to the specific SLO Brewing Facility property (APN: 053- 412-022) does not exceed the maximum building coverage nor increase densities greater than what is allowed per Table 7 of the ALUP because the incorporated conditions of approval limit the allowed number of people on the site. PROJECT DESCRIPTION: Proposal: Add "night club" to existing Business Park Zone (City of San Luis Obispo) to the Airport Area Specific Plan, and allow "night club" use for the specific SLO Brewing Facility property (APN: 053-412-022) Setting: Various Existing Uses: Various Site Area: Various properties within the Airport Review Area DISCUSSION: Project Description Proposed Addition of "Night Club" to Business Park Zone (BP) The applicant has submitted a request to the City of San Luis Obispo to allow "night club" as an allowed use in the BP zone of the Airport Area Specific Plan (AASP). The addition of this use necessitates an amendment to the City's General Plan to add the use to the BP zone of the AASP. Proposed Outdoor Live Music with SLO Brewing Facility The specific project that has precipitated the addition of "night club" to the BP zone is a request for outdoor live music at the proposed location of a new brewery and tasting room at 855 Aerovista Place. The project includes a 10,204 square foot brewery production facility, a 1, 170 square foot beer tasting area, a 256 square foot kitchen to serve pizza with indoor seating, and 600 square feet of outdoor seating. The proposal includes a request to host live music for the patrons of the tasting room around the existing rock outcropping in the outdoor patio area and/or inside the facility. In addition, the request includes hosting weddings, concerts, or other large party events on Page 3of9 14.d Packet Pg. 366 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) Friday evenings, Saturdays, and Sundays ending no later than 10:30 pm with a maximum attendance of 600 people. Setting/Existing Uses/Site Area Proposed Addition of "Night Club" to Business Park Zone The GPA proposal includes the addition of a new "night club" use to the BP zone of the AASP in the City of San Luis Obispo. These areas include pockets of BP zone west of Highway 227 and around Tank Farm Road, as well as the San Luis Ranch property. Much of the BP zone is already developed with a mix of commercial and warehouse uses. Undeveloped BP zone areas include some parcels around Aerovista Place and at the northwest corner of Tank Farm Road and Highway 227. A specific plan for the San Luis Ranch property bordered by Buckley Road and Vachell Lane is currently under review and therefore "night club" uses may or may not apply depending on the final approval of the specific plan. Night club uses are not anticipated in the San Luis Ranch property under the current proposal. Proposed Outdoor Live Music with SLO Brewing Facility The specific brewery with tasting room is proposed at 855 Aerovista Place on APN 053-412-022 (3.49 acres), with outdoor live music at the base of a large existing rock outcropping. The property is an undeveloped parcel within the Aerovista Business Park, which includes four, two-story office buildings that house a variety of professional offices, a fitness facility, and the proposed SLO Brewery. The Aerovista Business Park campus is on a total of 9.94 acres. The airport is located directly across Aerovista Place to the west, and property to the north and south is undeveloped. Airport Land Use Plan Applicability The project is a request to add "night club" to the City's Business Park Zone to allow live outdoor entertainment, which is intended to facilitate the addition of live outdoor music to the SLO Brewing facility. The various locations of BP zoning are located primarily within San Luis Obispo County Regional Airport Land Use Plan Aviation Safety Area S-1 c with a few areas within Safety Area S- 1 b and a small section within the Runway Protection Zone of the San Luis Obispo County Regional Airport (SBP) active Runway 29. Portions of the BP Zone are located within the projected 50 dB, 55 dB, and 60 dB airport noise contours, as shown on Exhibit 2 (Airport Noise Contours). Whether the proposed night club use is an allowable use in accordance with the ALUP 5.3 Land Use Compatibility Table is dependent on the location and surrounding uses of each specific future project, because the proposed use is considered a restaurant with exterior seating areas, and this use within some Airport Noise Exposures and Aviation Safety Areas is allowable (see further discussion below under Noise and Safety). ALUP Table 7-Planning Requirements Proposed Addition of "Night Club" to Business Park Zone The proposed project to add "night club" to the BP zone in the AASP does not change the requirements for future individual projects in the BP zone to meet the maximum building coverage, density of residential use, and density of non-residential use provisions of Table 7. However, the addition of the proposed "night club" use could facilitate the introduction of venues for live outdoor music where a higher density of people congregate. Future projects that include the "night club" use would be required to meet these requirements. Proposed Outdoor Live Music with SLO Brewing Facility The AASP allows 120 people per acre as a Cluster Development Zone with approved Airport Compatible Open Space Plan and Detailed Area Plan. The proposal for live outdoor music for the SLO Brewing project is consistent with the 120 person/acre maximum density of non-residential use, because the overall site of the Aerovista Business Park is 9.94 acres, which allows a Page 4of9 14.d Packet Pg. 367 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) maximum of 1, 192 people on the site. The project applicant proposes a maximum of 600 people for the outdoor live venue. Events are proposed to be scheduled on Friday evenings, Saturdays, and Sundays, when minimal employees are within the offices and other businesses that comprise the Aerovista Business Park. ALUP Table 8-Non-Residential Land Use Densities The applicable use category from Table 8 for the proposed "night club" use is Food and Beverage Service. Future proposals in the BP zone will be required to comply with the non-residential density requirement of one person per 60 square feet of gross floor area. The proposed SLO Brewing facility includes a 10,204 square foot brewery production facility, a 1, 170 square foot beer tasting area, 256 square-foot kitchen, and 600 square feet of outdoor seating for a total area of 12,230 square feet. With a maximum anticipated attendance of 600 people, the proposed facility exceeds the one person per 60 square feet gross floor area requirement if based on the strict developed square footage, as the proposal would result in one person per approximately 20 square feet of gross floor area. However, as the maximum attendance of 600 people is anticipated to be congregated both inside and outside within the larger 3.49 acre site during live outdoor music events, the non-residential land use density would be significantly less at approximately one person per 250 square feet. ALUP 4.2 General Land Use Policies The proposed project is consistent with the general land use policies because although it is unknown whether individual projects will conform with all applicable Specific Land Use Policies, including noise and safety, future night club uses on specific sites will be required to obtain a determination of consistency by the ALUC. See Specific Land Use Policy section below for more information. ALUP 4.3 Specific Land Use Policies: Noise Proposed Addition of "Night Club" to Business Park Zone The proposed project is not consistent with the objective of the ALUP noise policies to minimize the number of people exposed to frequent and/or high levels of airport noise or to frequent and/or high cumulative noise levels of which airport noise is one component. Outdoor eating and drinking areas associated with a bar or tavern use is considered an Extremely Noise Sensitive Land Use. According to Table 5, which summarizes the compatibility of noise sensitive land uses with projected CNEL contours, these types of land uses are prohibited within the 60 dB contour and must qualify as Infill development (Section 4.3.2.3) if they are located between the 55 and 60 dB contours. Since the Business Park Zone includes areas within the 60 dB contour, as well as areas between the 55 and 60 dB contours, it is unknown whether future individual projects would be compatible, prohibited, or would need to qualify as infill if located within these noise contours. Therefore, the request to add the proposed use to the BP zone is not consistent with the ALUP noise policies. Staff has included conditions of approval that future "night club" proposals in the BP zone of the AASP to be referred to the ALUC for a determination of consistency if they fall between the 55 and 60 dB contour, and are prohibited in the 60 dB contour unless the ALUC finds them consistent with the ALUP by a 2/3 majority vote as described in Section 2.7 of the ALUP. Proposed Outdoor Live Music with SLO Brewing Facility The specific request to add outdoor live music to the SLO Brewing Facility is inconsistent with the noise contour policies of the ALUP. The property is split between being inside the 60 dB CNEL contour and between the 55 and 60 dB contours, with the outdoor music area primarily inside the Page 5of9 14.d Packet Pg. 368 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) 60 dB contour. As stated above, outdoor eating and drinking areas associated with a bar or tavern use is considered an Extremely Noise Sensitive Land Use. According to Table 5, which summarizes the compatibility of noise sensitive land uses with projected CNEL contours, these types of land uses are prohibited within the 60 dB contour and must qualify as Infill development (Section 4.3.2.3) if they are located between the 55 and 60 dB contours. In the case of the SLO Brewing Facility, the proposed use involves 600 square feet of outdoor seating and live music around the existing rock outcropping in the outdoor patio area. The applicant has also proposed to host weddings, concerns, or other large party events on Friday evenings, Saturdays, and Sundays no later than 10:30 pm with a maximum attendance of 600 people. Live outdoor music is potentially consistent with the noise policies due to the sound amplification and the expectation of higher decibel levels among the outdoor seated patrons. However, attendees at events such as weddings or other large outdoor parties are more likely to expect a quieter surrounding than the 55-60 and above decibel levels. Staff has recommended conditions of approval restricting wedding ceremonies or other similar noise-sensitive events, as well as restricted days and hours for live outdoor music to occur. ALUP 4.4 Specific Land Use Policies: Safety Proposed Addition of "Night Club" to Business Park Zone The various locations of Business Park zoning are located primarily within San Luis Obispo County Regional Airport Land Use Plan Aviation Safety Area S-1 c with a few areas within Safety Area S- 1 b and a small section within the Runway Protection Zone of the San Luis Obispo County. As stated earlier, the AASP allows 120 people per acre as a Cluster Development Zone with approved Airport Compatible Open Space Plan and Detailed Area Plan. In the case of the addition of "night club" use to the BP zone, future nonresidential development would be required to be consistent with the densities specified in Table 7. Therefore the project is consistent with the ALUP safety policies. Proposed Outdoor Live Music with SLO Brewing Facility The project is potentially consistent with the ALUP Safety Policy S-2, which states that a project would be inconsistent with the ALUP if the project would permit or fail to adequately prohibit any future nonresidential development at a density greater than specified in Table 7. These policies are intended to minimize the risk to the safety and property of persons on the ground associated with potential aircraft accidents and to enhance the chances for survival of the occupants involved in an accident which takes place beyond the immediate runway environment. Although the proposal for live outdoor music for the SLO Brewing project is consistent with the 120 person/acre maximum density of non-residential use, the proposed facility is not strictly consistent with the one person per 60 square feet gross floor area for non-residential land use densities provided in Table 8, as the proposal would result in one person per approximately 40 people per acre based on the square footage of the building. However, as the maximum attendance of 600 people is anticipated to be congregated both inside and outside within the larger 3.49 acre site during live outdoor music events, the non-residential land use density would be significantly less at approximately one person per 250 square feet. ALUP 4.5 Specific Land Use Policies: Airspace Protection The proposed project is consistent with the airspace protection policies of the ALUP to minimize the risk of potential aircraft accidents in the vicinity of the Airport by avoiding the development of Page 6of9 14.d Packet Pg. 369 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) land uses and land use conditions which pose hazards to aircraft in flight. The proposed project does not pose an obstruction to the air navigation because the height of proposed future development, including the specific brewery project, in the BP zone is limited to the heights in the City Zoning Ordinance. The area zoned BP is located. within the Transitional and Horizontal Airport Imaginary surfaces, and the specific brewery project is located in the Transitional Airport Imaginary surface. ALUP 4.6 Specific Land Use Policies: Overflight The proposed project is consistent with the overflight policies of the ALUP to ensure that potential and prospective airport area land users are provided with sufficient information on the presence and activity of the Airport and associated noise and safety impacts in order for them to make an informed decision as to whether or not they wish to live and/or work in the Airport area. The majority of property in the BP zone, including the site of the proposed brewery, is adjacent to the airport and is not located within any flight paths. Individual projects will be required to provide avigation easements and full and accurate disclosure of airport operations. A portion of the BP zone (San Luis Ranch) is located between numerous flight paths. This project is currently under review for a specific plan, and those employees will receive sufficient information regarding the presence of airport activity within the vicinity as part of the specific plan review. ALUC ACTION CHOICES The ALUP recognizes that because the ALUP covers a wide and diverse geographical area, the strict application of ALUP polices may be inappropriate under circumstances in the review of small- scale individual projects. In the case of a situation where a project fails to meet one or more of the ALUP policies, the ALUC is authorized to find a proposed individual project consistent with the ALUP with an action requiring a 2/3 majority vote by the ALUC (Section 2.7). However, in the case of a general plan amendment, specific plan amendment, or zoning regulation, the ALUC is only authorized to find the request consistent with the ALUP with a 2/3 majority vote if: a) the action only applies to property occupied by the referred individual project, and b) the action shall contain provisions sufficient to ensure that no development other than the exact project referred to and considered by the ALUC may be established within the referral area. The current request is a general plan amendment and specific plan amendment to add "night club" to the Business Park Zone. Future developments with a "night club" use could be compatible, prohibited, or would need to qualify as infill depending upon the specific characteristics and location of the development. Conditions of approval are included that future "night club" proposals in the BP zone of the AASP be referred to the ALUC for a determination of consistency. If the ALUC finds the specific SLO Brewing Facility project to be inconsistent with specific policies of the ALUP, they are authorized to find the project consistent with the ALUP under the provisions of Section 2. 7 because it is a specific, individual project. Section 2. 7 is clear that the ALUC is authorized to find projects consistent with the ALUP with a 2/3 majority vote only for a specific and individual project. The proposed addition of "night club" to the SLO Brewery Facility is a specific and individual project because it affects one specific property, and therefore can be found consistent under the provisions of Section 2.7. Staff has included findings and conditions of approval for this ALUC action. Page 7of9 14.d Packet Pg. 370 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) Revised Conditions: Conditions of Approval to be incorporated into the proposed amendment to add "night club" use to the Business Park Zone within the Airport Area Specific Plan: 1. Future development that includes "Nightclub" uses proposed within the Business Park Zone of the Airport Area Specific Plan shall meet the standards and requirements of the Airport Land Use Plan, and shall be referred to the Airport Land Use Commission for a determination of consistency with the Airport Land Use Plan. 2. All tall structures shall be reviewed by the Air Traffic Division of the FAA regional office having jurisdiction over San Luis Obispo County to determine compliance with the provisions of FAR Part 77. In addition, applicable construction activities must be reported via FAA Form 7460-1 at least 30 days before proposed construction or application for building permit. Conditions of Approval to be incorporated into any use permit(s) for development for the specific SLO Brewing Facility project site (APN: 053-412-022): 1. Non-residential density for the property is limited to no more than 600 persons. 2. No wedding ceremonies or other similar noise-sensitive events and/or activities are allowed on the outdoor portions of the property, and any indoor uses must comply with applicable density restrictions within the Airport Land Use Plan. 3. The proposed hours allowed for live outdoor music events shall be 6:00 p.m. to 11 :00 p.m. on Fridays, and 8:00 a.m. to 11 :00 p.m. on Saturdays and Sundays. 4. No structure, landscaping, apparatus, or other feature, whether temporary or permanent in nature shall constitute an obstruction to air navigation or a hazard to air navigation, as defined by the ALUP. 5. Any use is prohibited that may entail characteristics which would potentially interfere with the takeoff, landing, or maneuvering of aircraft at the Airport, including: • creation of electrical interference with navigation signals or radio communication between the aircraft and airport; • lighting which is difficult to distinguish from airport lighting; • glare in the eyes of pilots using the airport; • uses which attract birds and create bird strike hazards; • uses which produce visually significant quantities of smoke; and • uses which entail a risk of physical injury to operators or passengers of aircraft (e.g., exterior laser light demonstrations or shows). 6. Avigation easements will be recorded for each property developed within the area included in the proposed local action prior to the issuance of any building permit or conditional use permit. Page 8of9 14.d Packet Pg. 371 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) 7. All owners, potential purchasers, occupants (whether as owners or renters), and potential occupants (whether as owners or renters) will receive full and accurate disclosure concerning the noise, safety, or overflight impacts associated with airport operations prior to entering any contractual obligation to purchase, lease, rent, or otherwise occupy any property or properties within the airport area. Page 9of9 14.d Packet Pg. 372 Attachment: d - ALUC Action (December 16, 2015) (1303 : SLO Brew Night Club Text Amendment) AEROVISTA BUSINESS,PARK S,A,N,,,L,U,I,S,,,O,B,I,S,P,O Proposal for Zone Text Amendment Specific Plan Amendment BUSINESS PARK ZONE City of San Luis Obispo Revised July 20, 2015 Steven D. Pults, AIA & Associates, LLP 3592 Sacramento Drive, Suite 140 San Luis Obispo, CA 93401 14.e Packet Pg. 373 Attachment: e - Project Description (1303 : SLO Brew Night Club Text Amendment) Zoning Text Amendment This summarizes our request for a text amendment to add special events “Night Club Use” as an allowed use, with directors approval, in the Business Park Zone. Currently there are no provisions for any kind of entertainment or special event in the BP Zone. Our current project, the SLO Brewing Production Facility, is located in the Business Park Zone in the airport area. A small part of the project includes a beer tasting room, along with a small kitchen to serve pizza. There are indoor and outdoor seating areas to accommodate customers. The purpose of the text amendment is to provide the opportunity to have live entertainment, at appropriate times, for this function. The production facility is set in the midst of the Aerovista Business Park. The park includes four other office buildings, which house a variety of professional offices. The entire campus is 9.94 acres. The timing of events would be controlled and be outside of normal office hours. Live entertainment events would be limited to evenings, weekends when the office buildings will be virtually empty. Hours would be in accordance with the Airport Land Use Commission approval: Fridays from 5:00 to 11:00 pm, Saturday and Sundays from 8:00 am to 11:00 pm. The entire campus is 9.94 acres. The initial concept includes a couple of events per week, which would consist of a local band to provide live music for the patrons of the tasting room. There may also be concerts or possibly weddings on weekends only for larger crowds of up to 600. These would be held around the existing rock outcropping in the outdoor patio area and/or inside the facility. Parking for these events would be on site which has a total of 447 parking spaces. The actual number, type, and timing for events would be considered on an individual basis as part of the administrative use permit process. No events would be allowed without directors approval. We feel these events are consistent with the currently allowed uses in this zone. While each project has a different set of conditions in terms of location, tenants, parking, etc., the administrative use permit process would provide the specific controls on a location by location basis. Specific Plan Amendment We feel this proposal falls within the intent of existing Airport Area Specific Plan policies. The Airport Area Specific Plan states the following regarding Business Park Zoning: “Areas designated Business Park are primarily for research and development, light manufacturing, and business services that are compatible with each other and with airport operations. Activities that are supportive of, or accessory to, the primary activities may be allowed as well.” The underlined portion of this section is clearly supportive of accessory uses. The specific plan currently allows, with Directors Approval, a Bar/Tavern or in our case a tasting room. To have a band or even a single musician would seem to be a normal accessory use for a bar/tavern, but currently there is no provision to allow any type of live entertainment. The Business Park Zone is intended to include projects that are designed as a “Campus Type Development” with a fairly wide mix of business services, manufacturing, and distribution in a single location. These developments would typically be virtually unoccupied on nights and weekends, making them an excellent location for the type of special events we have requested. The developments are generally located away from residential areas or uses that would conflict with these events. 14.e Packet Pg. 374 Attachment: e - Project Description (1303 : SLO Brew Night Club Text Amendment) General Plan We feel this proposal falls within the intent of existing General Plan policies. One of the goals of the General Plan is to: “Emphasize more productive use of existing commercial buildings and land areas already committed to urban development”. Our request to allow special events in the Business Park Zone is directly aligned with that goal. Weekend and after hour events will allow the use of existing commercial developments when they would otherwise be vacant and unused. The General Plan uses designated for Business Parks, includes: Research and development, Light manufacturing, Financial and Professional Services and Offices, Small Retail, Restaurants, Caretaker quarters, and Public and quasi-public uses. It also encourages “compatible mixed uses in commercial districts”. Again our proposal falls directly in line with these. General Plan Policy 4.3, states: “Entertainment facilities, such as nightclubs and theaters shall be in the Downtown”. This policy appears to conflict with our request, however, it needs to be noted that we are not requesting that a traditional “nightclub” be allowed, and we have no desire or intention of running a nightclub. The terminology is somewhat misleading. The special event and live music uses we are requesting are very different from a traditional nightclub. The general plan and the zoning ordinance have no specific category that accurately defines our request. City staff has indicated that what we are asking for would fall under the “nightclub” classification, so we have applied under this classification. We are asking to be able to provide live music in conjunction with a beer tasting room, and to be able to have special events, such as concerts and possibly weddings. We do not feel that this would conflict with a traditional nightclub or this policy. Airport Land Use Commission Requirements: 1 Proposed amendment requires approval by the Airport Land Use Commission. 2. Proposed amendment - refer to attached zoning regulations mark up. 3. Adjacent property owners - to be provided by the City. 4. Map of geographic area, including land uses, airport area, - refer to Specific Plan Map attached. Airport Area Safety Zone: S-1c - refer to attache Safety Zone Map Maximum Population: 120 people per acre - Table 4.6 Airport area Specific Plan Site Size: 9.94 acres Noise Study attached. 5, 6, 7, 8. Proposed site is already developed, so uses are existing. Office complex. 9. Environmental Assessment: Noise Study attached. 10. Avigation Easement is already in existence for this property, per 1999-079221 and per 2001-011944 
 14.e Packet Pg. 375 Attachment: e - Project Description (1303 : SLO Brew Night Club Text Amendment) BP-SP C-S PF-SP C/OS R-1-SP R-1-SP AIRPO R T B R O A DAEROVISTA AEROFIERO VICINITY MAP File No. 1316-2015855 AEROVISTA ST ¯ 14.f Packet Pg. 376 Attachment: f - Vicinity Map (1303 : SLO Brew Night Club Text Amendment) These drawings are instruments of service and areproperty of Steven D. Pults, AIA & Associates, LLP.All design and other information on the drawingsare for use on the specified projectand shall not be used otherwise without theexpressed written permission ofSteven D.Pults, AIA & Associates, LLP.Architecture, Planning & Graphics3592 Sacramento Dr, Suite 140San Luis Obispo, California 93401805/541-5604 voice1346Date:Revised:Job No:Sheet:Project:Client:Sheet Contents:AUZCO DEVELOPMENTS835 AEROVISTA PLACESUITE 230SAN LUIS OBISPOCA 93401(805) 706-2915PRODUCTION BUILDING855 AEROVISTA PLACESAN LUIS OBISPOLICENSED ARCHITE C T FRANCES FAN GIB B S S T A TE OF CALIFORNIANo. C-26942REN. 10-31-15AEROVISTA BUSINESS PARKMASTER SITE PLAN855 AEROVISTA PLACE865 AEROVISTA PLACE835 AEROVISTA PLACESLO BREWPATIOBIKESTRASHTRASHN52°00'08"E 255.51'N52°00'08"E 254.66'S57°42' 38"W 219.52'N52°00'08"E 410.15'L=110.28'R=770.00'L = 106.65'R = 60.00'AIRP O R T DRIV EAEROVISTA PLACEN65° 4 8' 1 5" WL=179.12' R=770.00'354.0 7' N36°09'00"W BROAD STREET • HWY 227 S64° 3 1' 32"E 476 .17'N32°17' 38"W254.51'N57°42' 29"E 527.94'805 AEROVISTA895 AEROVISTALOADINGSCALE: 1" = 40'-0"14.g Packet Pg. 377 Attachment: g - Site Plan (1303 : SLO Brew Night Club Text Amendment) The Rock @ SLO Brew Safety and Security Plan Introduction: The SLO Brew Rock security plan will be broken down into three (3) parts; definitions, systems and implementation. This structure will help with ease of finding required information within this document. Definitions: The definitions in this section will clarify the distinctions we make as to what constitutes the levels of safety and security that will be implemented for any given event. This will help us implement this plan to the best of our abilities. • “Event(s)” will be defined as any gathering of greater than (100) patrons. • “Major Event(s)” will be defined as any gathering of more than (300) up to our land use and building capacity. • “Venue” will be defined as any area within or on the property including parking lots and “The Rock”. • “Attendant” will be defined as any staff member with adequate training to implement this safety and security plan. Training will include topics such as crowd control, procedures for dealing with unruly patrons, basic first aid, and procedures for dealing with medical emergencies. • “Staff” will be defined as any person employed by the venue for purposes other than patron interaction. • “Supervisor” will be defined as any staff member that will be properly trained in the total implementation of all venue safety and security practices. This will include topics such as crowd control, emergency safety procedures and all systems within the venue. • “Patron” will be defined as any person seeking to procure any service within the venue. Systems: The systems of this safety and security plan will be broken down into two (2) sections: the venue and procedures. This will differentiate how the physical structure will add to this safety and security plan and how the attendants and procedures will contribute as well. -Venue: The venue will contribute in several ways to the success of this safety and security plan. The general layout of the venue will help with the flow of foot traffic resulting in a smooth operation of pre and post event. Starting with the parking lot, the flow of foot traffic leads to the front of the venue (see CPTED Plan). The available parking abuts the walkways leading to the interior of the venue, where an attendant in the patio area will greet them. During all events we will place lines to form an orderly queue of patrons to be received by an attendant, which will preserve the original flow of foot traffic. We will also have temporary signage that will denote direction of event. The permanent exit signs will be augmented by temporary directional signage to direct exiting patrons. Exterior of venue buildings will also be lit as per code. Within the venue, patrons are restricted from entering production areas without an escort. This is accomplished with several security doors that will only be accessible with a key by 14.h Packet Pg. 378 Attachment: h - Security Plans (1303 : SLO Brew Night Club Text Amendment) authorized attendant(s) or staff member(s). This will minimize the occurrence of accidents and medical emergencies within that part of the venue. -Procedures This section will outline the procedures used to ensure safety and security of venue property and patrons. Our attendants will be trained in all procedures included within this section. • Entering- attendants direct all patrons to their desired areas. During events we will have attendants directing all patrons to reception. During major events, attendants will place lines and temporary signage so as to not impede existing foot traffic and direct patrons to appropriate area. The areas where queues will be formed are denoted on Figure 1. • Exiting- all patrons will be directed to exits by attendants so as not to impede traffic flow. Attendants will also help direct traffic during major events. Attendants will also equip flashlights in the event of an evening exit. • Health and safety- all attendants will be trained to properly check and read IDs to ascertain age of patrons imbibing alcohol. All attendants will also be trained in basic first aid. • Emergency procedure- in the event that a patron or staff member is in need of emergency medical aid, attendants will notify the proper authorities as well as supervisor on duty. In the case of unruly patron, attendants will notify proper authorities and escort the patron to the parking lot. In the event of a fire or other disaster, attendants will escort all occupants to parking lots on both ends of the property in a safe and orderly manner in conjunction with emergency action plan. • Staffing- as this is a working production facility, staff is available during regular opening hours. In the case of a scheduled event we will have no less than (4) attendants as well as event staff (catering crew, kitchen staff, Brew staff). In the case of a major event we would staff according to projected attendance at a rate of (1) attendant for every (30) patrons. • Standard practices- these procedures and practices will be standard throughout the venue. o We have a professional manager on site during all hours of operation. o We have attendants at entrances and exits to facilitate flow of foot traffic. o Attendants increased for events and major events o All attendants equipped with walkie-talkies direct to manager. o Manager periodically checks outside of building. o Manager carries cell phone to allow instant access to SLO PD o Bathrooms as required by occupancy. o Security cameras installed throughout • Crowd Control practices- We consider this issue of major importance to the community and the continued success of our operation, and there have instituted the following measures to maintain behavioral patterns consistent with community standards. o Consult with SLO PD for guidance periodically; o Consult with ABC officials for adequate standards; o Consult and support drug and alcohol prevention efforts; and 14.h Packet Pg. 379 Attachment: h - Security Plans (1303 : SLO Brew Night Club Text Amendment) o Internal security practices  Insure legal occupancy is maintained  Maintain orderly queues and outside behavior  Refusal to serve over intoxicated patrons  Offer taxi or other means of transportation to minimize number of drivers  Liaison with police Implementation: Implementation of this safety and security plan will be carried out by all staff and supervisors. Supervisors are responsible for training all staff and attendants in all systems and procedures. Additionally, supervisors will conduct regular audits of systems and procedures with staff and attendants. 14.h Packet Pg. 380 Attachment: h - Security Plans (1303 : SLO Brew Night Club Text Amendment) Crime Prevention Through Environmental Design (CPTED) elements for The Rock: SLO Brew (full CPTED list follows) Natural surveillance: • landscape designs provide surveillance, especially in proximity to designated points of entry and opportunistic points of entry. • lighting design avoids poorly placed lights that create blind spots for potential observers and miss critical areas. We ensure potential problem areas are well lit: pathways, entrances/exits, storage areas, dumpster and recycling areas, etc. • We avoid too-bright security lighting that creates blinding glare and/or deep shadows, hindering the view for potential observers. (Eyes adapt to night lighting and have trouble adjusting to severe lighting disparities.) • We use shielded or cut-off luminaires to control glare. • We placed lighting along pathways and other pedestrian-use areas at proper heights for lighting the faces of the people in the space (and to identify the faces of potential attackers). Natural surveillance measures are complemented by mechanical and organizational measures. For example, closed-circuit television (CCTV) cameras Natural territorial reinforcement: • Security system signage is visible at access points. • Premises and landscaping is maintained such that it communicates an alert and active presence occupying the space. • Owners have a vested interest and are more likely to challenge intruders or report them to the police. • Amenities such as seating or refreshments are placed in common areas in a commercial or institutional setting helps to attract larger numbers of desired users. • Activities are scheduled in common areas to increases proper use, attract more people and increase the perception that these areas are controlled. • Territorial reinforcement measures make the normal user feel safe and make the potential offender aware of a substantial risk of apprehension or scrutiny. 14.h Packet Pg. 381 Attachment: h - Security Plans (1303 : SLO Brew Night Club Text Amendment) Figure 1: Location of where queues will form during major events 14.h Packet Pg. 382 Attachment: h - Security Plans (1303 : SLO Brew Night Club Text Amendment) Sound Level Assessment for SLO Brew Production Building 855 Aerovista Place San Luis Obispo, CA requested by Auzco Developments San Luis Obispo, CA. 93401 July 3, 2015 45dB.com David Lord, PH.D. Acoustics Consulting P.O. Box 1406 San Luis Obispo California 93406 tel. 805.704.8046 email: dl@45db.com 14.i Packet Pg. 383 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 2 7/3/15 Table of Contents 1.0 Description and Criteria .................................................................................4 2.0 Regulatory Setting ..........................................................................................4 2.1 State Regulation ..................................................................................5 2.2 Local Regulation ..................................................................................5 2.3 Airport Land Use Plan ......................................................................5 3.0 Existing Sound Levels ..................................................................................5 4.0 Future Sound Levels .....................................................................................15 5.0 Discussion and Conclusions ..........................................................................15 6.0 REFERENCES ...............................................................................................19 7.0 APPENDIX A: Glossary of Acoustical Terms .............................................20 8.0 Measurements, Calculations and Modeling .................................................23 8.1 Wind Measurement ..........................................................................23 8.2 Precision of Sound Level Meters. ................................................23 8.3 Sound Level Measurement Method ................................................23 14.i Packet Pg. 384 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 3 7/3/15 List of Figures Figure 1. Site Plan, vicinity ....................................................................................6 Figure 2. Site Plan, nearest receptor .......................................................................7 Figure 3. Site Plan, specifi c ....................................................................................8 Figure 4. Measured Existing Sound Level ............................................................9 Figure 5. Measured One hour Leq .....................................................................10 Figure 6. Ldn / CNEL .......................................................................................11 Figure 7. Acceptable Noise Exposure ..............................................................12 Figure 8. City Noise Ordinance ......................................................................13 Figure 9. Airport Land Use Plan ...................................................................14 Figure 10. Future Sound Level .........................................................................16 Figure 11. Future Sound Level, detail ..............................................................17 Figure 12. Average Wind Conditions .................................................................18 14.i Packet Pg. 385 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 4 7/3/15 Sound Level Assessment for SLO Brew Production Building 855 Aerovista Place San Luis Obispo, CA 1.0 Description and Criteria This sound level assessment is for the proposed development of the SLO Brew Production Building with regard to surrounding noise levels from airport operations and potential on-site sound generation from all sources. The possible noise sources examined in this study are vehicular traffi c in the parking lot and surrounding streets, including nearby State Highway 227, air traffi c from San Luis Obispo County Regional Airport, and potential future night club entertainment activity. The proposed SLO Brew Production Building site is bordered by Aerovista Place to the north and cleared land to the south. Professional and commercial offi ces are located adjacent to the proposed building with offi ce hours from 8 am to 5 pm each business day, Monday through Friday. The northeast of the site is closest to the San Luis Obispo County Regional Airport operations. The general layout and confi guration of the site, along with sound level measurement locations are shown in “Figure 3. Site Plan, specifi c” on page 8. This report provides a description of the environmental noise survey, a discussion of applicable noise standards, results of the noise survey, future noise level projections, and noise mitigation recommendations for the proposed residential development. Existing sound levels were measured continuously on the proposed site at 10-second intervals over a 24-hour period on Thursday, Friday and Saturday, June 19, 20, 21, 2015. An acoustic model with sound level contours was generated for the site based on topography, noise sources and measured sound level values. Future sound levels associated with night club use are assumed to occur on designated Thursdays, Fridays and Saturdays in the evenings from 6 pm to 2 am, not during the daytime hours when there are nearby offi ce building operations. 2.0 Regulatory Setting Noise is regulated at the federal, state and local levels through regulations, policies and/or local ordinances. Local policies are generally adaptations of federal and state guidelines, adjusted to prevailing local condition. Refer to “7.0 APPENDIX A: Glossary of Acoustical Terms” on page 20 for further defi nition of metrics and terminology. 14.i Packet Pg. 386 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 5 7/3/15 2.1 State Regulation The State of California’s Guidelines for the Preparation and Content of Noise Element of the General Plan (1987). These guidelines reference land use compatibility standards for community noise environments as developed by the California Department of Health Services, Offi ce of Noise Control. Sound levels up to 65 Ldn or CNEL are determined to be normally acceptable for multi-family residential land uses. Sound levels up to 70 CNEL are normally acceptable for buildings containing professional offi ces or defi ned as business commercial. However, a detailed analysis of noise reduction requirements is recommended when new offi ce or commercial development is proposed in areas where existing sound levels approach 70 CNEL. 2.2 Local Regulation Transportation Noise: Guidelines for transportation noise exposure are contained in City of San Luis Obispo, General Plan Noise Element and Noise Guidebook (1996). The maximum noise exposure standards for noise-sensitive land uses are shown in “Figure 7. Acceptable Noise Exposure” on page 12. 2.3 Airport Land Use Plan The location of the proposed site in relation to the airport is shown in “Figure 9. Airport Land Use Plan” on page 14. The Airport Land Use Plan (ALUP), adopted December 1973 and amended May, 2005, establishes Maximum Allowable Interior Noise Exposure from Aviation Related Noise Sources for residential use. The metric used by the ALUP map is the “single- event noise contour.” The reference event for determination of required single event noise mitigation is assumed to be the straight-in departure of a regional airline jet from Runway 29. 3.0 Existing Sound Levels Existing sound levels on the site were measured at 10-second intervals over a typical weekend 24-hour period, Thursday, Friday and Saturday, June 19 - 21. These three days of the week would be typical for scheduled events at the proposed venue. Recorded sound level data consist of: Average instantaneous sound level, dBA, Leq 1 hour sound levels, dBA Ldn or CNEL 24 hour average sound level, dBA Audio recording of each event over 60 dBA. From the measured data, existing hourly LEQ values were calculated and an overall Community Noise Equivalent Level (CNEL) and Day Night Level (LDN) was calculated For an explanation of technical defi nitions, see “7.0 APPENDIX A: Glossary of Acoustical Terms” on page 20. 14.i Packet Pg. 387 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 6 7/3/15 Figure 1. Site Plan, vicinity The vicinity site plan shows the proposed location of SLO Brew Production facility, with adjacent building structures and the airport runway. 14.i Packet Pg. 388 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 7 7/3/15 Figure 2. Site Plan, nearest receptor The proposed performance area is 891 feet from the nearest residential receptor. The propa- gation of sound is mitigated by a large building, which acts as a noise barrier, and also by the signifi cant traffi c noise on Highway 227, which will serve to mask noise and suppress audibility of sound coming from the performance area. 14.i Packet Pg. 389 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 8 7/3/15 Figure 3. Site Plan, specifi c The site plan shows the proposed location of SLO Brew Production facility, with adjacent building structures. Existing sound level measurements were made in the area indicated, which will be the future proposed general event area. 14.i Packet Pg. 390 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 9 7/3/15 Figure 4. Measured Existing Sound Level Existing Sound Level, measured every 10 seconds over a 24-hour period. The sound level meter is located in the middle of the proposed event area. Peak sound levels are generally identifi ed as aircraft arrivals and departures. Sound levels are dBA, slow meter setting 14.i Packet Pg. 391 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 10 7/3/15 Figure 5. Measured One hour Leq Measured Sound Levels, expressed as hourly Leq over a 24-hour period. The calculated LDN/ CNEL for the 24-hour period is 52 dBA, including calculated penalties for evening and nighttime noise. 14.i Packet Pg. 392 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 11 7/3/15 Figure 6. Ldn / CNEL This table shows the calculated results of hourly Leq sound levels on the overall LDN and CNEL for existing sound level at the proposed performance area. All calculations are based on continuous measured values shown in “Figure 4. Measured Existing Sound Level” on page 9. 14.i Packet Pg. 393 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 12 7/3/15 Figure 7. Acceptable Noise Exposure City of San Luis Obispo: Acceptability of new noise-sensitive uses exposed to transportation noise sources. Noise Element of the General Plan. 14.i Packet Pg. 394 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 13 7/3/15 Figure 8. City Noise Ordinance City of San Luis Obispo Municipal Ordinance 9.12.060 Exterior Noise Limits. Referring to Table No. 1 shown below, there is also a Correction for Character of Sound: In the event the alleged offensive noise, as determined by the noise control offi cer, contains a steady, audible tone such as whine, screech or hum, or is a repetitive noise such as hammering or riveting, or contains music or speech, the standard limits set forth in Table 1 of this section shall be reduced by 5 dB. The noise standard represented in Table 1 may be not be allowed to exceed: (a) The noise standard for a cumulative period of more than thirty minutes in any hour; or (b) The noise standard plus 5 dB for a cumulative period of more than fi fteen minutes in any hour; or (c) The noise standard plus 10 dB for a cumulative period of more than fi ve minutes in any hour; or (d) The noise standard plus 15 dB for a cumulative period of more than one minute in any hour; or (e) e. The noise standard plus 20 dB for any period of time. 14.i Packet Pg. 395 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 14 7/3/15 Figure 9. Airport Land Use Plan Location of proposed SLO Brew Production site in relation to the Airport Land Use Plan Airport Noise Contours. The site is within and near to the projected 65 dBA airport Single Event Noise Contour. Single Event noise is distinguished from “maximum sound level,” “Leq 1 hour sound level” and “Ldn 24-hour sound level” used elsewhere in this report. 14.i Packet Pg. 396 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 15 7/3/15 4.0 Future Sound Levels Existing measured sound levels provide a baseline from which future sound levels can be predicted. Future sound levels are related to increased activity at the proposed performance area and SLO Brew production facility operations. In addition there are expected to be increases in number of fl ights at the San Luis Obispo County Regional Airport, and an increase in Average Daily Traffi c (ADT) on State Route 227 to the northeast of the site. The general relationship of traffi c growth and sound level is that with a doubling of traffi c ADT, there will be a concomitant increase of 3 dB sound level. The use of the proposed production facility and proposed performance area will result in a maximum attendance of 600 audience members and the use of sound amplifi cation for music and for voice. In order that future sound levels shall not exceed the values represented in “Figure 8. City Noise Ordinance” on page 13 at the residential boundary located 891 feet to the northeast, the sound level at 20 feet distance from the speakers shall not exceed Leq 1 hr = 90 dBA. 5.0 Discussion and Conclusions The 24-hour existing sound levels on the undeveloped site and future sound levels for the developed project are clearly shown in relation to the ambient airport operations, distant traffi c on Highway 227, and distant potential residential sensitive receptors. Future sound levels from the proposed night club use of the production building are compatible with surrounding business uses because of the alternating hours of use. Mitigation of noise propagation toward distant potential residential receptors occurs due to the distance involved, the presence of a large building which acts as a noise barrier, and the signifi cant continuous traffi c on State Highway 227 between the noise source and the residential receptors. Therefore, in our opinion this project is compatible with the Airport Land Use Plan and the proposed project is in compliance with municipal regulations governing noise. 14.i Packet Pg. 397 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 16 7/3/15 Figure 10. Future Sound Level Future Sound Level Contours, Leq 1 hr. = dBA, based on the projected use of the production facility and performance area. A maximum of 600 persons, with amplifi ed music and voice, which shall not measure greater than 90 dBA at 20 feet from speakers. Sound level from amplifi ed music shall not exceed Leq 1 hr = 50 dBA at residential receptor boundary to the northwest. As shown in this acoustical model, the signifi cant traffi c noise contribution from Highway 227. 14.i Packet Pg. 398 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 17 7/3/15 Figure 11. Future Sound Level, detail Future Sound Level Contours, Leq 1 hr. = dBA, based on the projected use of the production facility and acoustic only performance area. A maximum of 200 persons, with no amplifi ed music and no amplifi ed voice. 14.i Packet Pg. 399 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 18 7/3/15 Figure 12. Average Wind Conditions Sound measurement and sound propagation can be infl uenced by the wind speed and wind direction. The data graphed below represent average conditions for the days June 19 through June 21, 2015. On this site, typical wind direction is from the north during the potential hours of amplifi ed music and voice events (6 pm to 2 am), which may increase sound levels toward the south of the proposed music venue. South of the venue is an area that has no nearby sensitive residential receptors. The nearest residential receptors are located to the northeast of the music source and should not experience an increase in predicted noise levels due to wind. 14.i Packet Pg. 400 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 19 7/3/15 6.0 REFERENCES 1. American National Standards Institute, Inc. 2004. ANSI 1994 American National Standard Acoustical Terminology. ANSI S.1.-1994, (R2004) , New York, NY. 2. American Society for Testing and Materials. 2004. ASTM E 1014 - 84 (Reapproved 2000) Standard Guide for Measurement of Outdoor A-Weighted Sound Levels. 3. Berglund, Birgitta, World Health Organization. 1999. Guidelines for Community Noise chapter 4, Guideline Values. 4. Bolt, Beranek and Newman. 1973. Fundamentals and Abatement of Highway Traffi c Noise, Report No. PB-222-703. Prepared for Federal Highway Administration. 5. California Department of Transportation (Caltrans). 1982. Caltrans Transportation Laboratory Manual. 6. ______. 1998. Caltrans Traffi c Noise Analysis Protocol For New Highway Construction and Highway Reconstruction Projects. 7. ______. 2006. California Transportation Plan 2025, chapter 6. 8. California Resources Agency. 2007. Title 14. California Code of Regulations Chapter 3. Guidelines for Implementation of the California Environmental Quality Act Article 5. Preliminary Review of Projects and Conduct of Initial Study Sections, 15060 to 15065. 9. City of San Luis Obispo. City of San Luis Obispo General Plan, Noise Element. 10. Federal Highway Administration. 2006. FHWA Roadway Construction Noise Model User’s Guide Final Report. FHWA-HEP-05-054 DOT-VNTSC-FHWA-05-01. 11. Harris, Cyril.M., editor. 1979 Handbook of Noise Control. 14.i Packet Pg. 401 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 20 7/3/15 7.0 APPENDIX A: Glossary of Acoustical Terms A-Weighted Sound Level (dBA) The sound pressure level in decibels as measured on a sound level meter using the inter- nationally standardized A-weighting fi lter or as computed from sound spectral data to which A-weighting adjustments have been made. A-weighting de-emphasizes the low and very high frequency components of the sound in a manner similar to the response of the average human ear. A-weighted sound levels correlate well with subjective reactions of people to noise and are universally used for community noise evaluations. Airborne Sound Sound that travels through the air, differentiated from structure-borne sound. Ambient Sound Level The prevailing general sound level existing at a location or in a space, which usually consists of a composite of sounds from many sources near and far. The ambient level is typically defi ned by the Leq level. Background Sound Level The underlying, ever-present lower level noise that remains in the absence of intrusive or intermittent sounds. Distant sources, such as traffi c, typically make up the background. The background level is generally defi ned by the L90 percentile noise level. Community Noise Equivalent Level (CNEL): The Leq of the A-weighted noise level over a 24-hour period with a 5 dB penalty applied to noise levels between 7 p.m. and 10 p.m. and a 10 dB penalty applied to noise levels between 10 p.m. and 7 a.m. Day-Night Sound Level (Ldn): The Leq of the A-weighted noise level over a 24-hour period with a 10 dB penalty applied to noise levels between 10 p.m. and 7 a.m. Decibel (dB): The decibel is a measure on a logarithmic scale of the magnitude of a particular quantity (such as sound pressure, sound power, sound intensity) with respect to a reference quantity. DBA or dB(A) A-weighted sound level. The ear does not respond equally to all frequencies, but is less sensitive at low and high frequencies than it is at medium or speech range frequencies. Thus, to obtain a single number representing the sound level of a noise containing a wide range of frequencies in a manner representative of the ear’s response, it is necessary to reduce the effects of the low and high frequencies with respect to the medium frequencies. The resultant sound level is said to be A-weighted, and the units are dBA. The A-weighted sound level is also called the noise level. 14.i Packet Pg. 402 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 21 7/3/15 Energy Equivalent Level (LEQ): Because sound levels can vary markedly in intensity over a short period of time, some method for describing either the average character of the sound or the statistical behavior of the variations must be utilized. Most commonly, one describes ambient sounds in terms of an average level that has the same acoustical energy as the summation of all the time-varying events. This energy-equivalent sound/noise descriptor is called LEQ. In this report, an hourly period is used. Field Sound Transmission Class (FSTC): A single number rating similar to STC, except that the transmission loss values used to derive the FSTC are measured in the fi eld. All sound transmitted from the source room to the receiving room is assumed to be through the separating wall or fl oor-ceiling assembly. Outdoor-Indoor Transmission Class (OITC): A single number classifi cation, specifi ed by the American Society for Testing and Materials (ASTM E 1332 issued 1994), that establishes the A-weighted sound level reduction provided by building facade components (walls, doors, windows, and combina- tions thereof), based upon a reference sound spectra that is an average of typical air, road, and rail transportation sources. The OITC is the preferred rating when exterior facade components are exposed to a noise environment dominated by transportation sources. Percentile Sound Level, Ln: The noise level exceeded during n percent of the measurement period, where n is a number between 0 and 100 (e.g., L10 or L90) Sound Transmission Class (STC): STC is a single number rating, specifi ed by the American Society for Testing and Materials, which can be used to measure the sound insulation properties for comparing the sound transmission capability, in decibels, of interior building partitions for noise sources such as speech, radio, and television. It is used extensively for rating sound insulation characteristics of building materials and products. Structure-Borne Sound: Sound propagating through building structure. Rapidly fl uctuating elastic waves in gypsum board, joists, studs, etc. Sound Exposure Level (SEL) SEL is the sound exposure level, defi ned as a single number rating indicating the total energy of a discrete noise-generating event (e.g., an aircraft fl yover) compressed into a 1- second time duration. This level is handy as a consistent rating method that may be combined with other SEL and Leq readings to provide a complete noise scenario for measurements and predictions. However, care must be taken in the use of these values since they may be misleading because their numeric value is higher than any sound level which existed during the measurement period. 14.i Packet Pg. 403 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 22 7/3/15 Subjective Loudness Level In addition to precision measurement of sound level changes, there is a subjective charac- teristic which describes how most people respond to sound: •A change in sound level of 3 dBA is barely perceptible by most listeners. •A change in level of 6 dBA is clearly perceptible. •A change of 10 dBA is perceived by most people as being twice (or half) as loud. 14.i Packet Pg. 404 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 23 7/3/15 8.0 Measurements, Calculations and Modeling 8.1 Wind Measurement Sound level measurements become less reliable when average wind speed is greater than 11 m.p.h. at the measurement site. Therefore, wind speed and direction are measured periodically at the measurement site and the results are correlated with wind data from a nearby established weather station. A Larson Davis WS 001 windscreen is used as wind protection for all micro- phones and is left in place at all times. Wind speed and direction were noted throughout the measurement period and compared with data from the nearby National Weather Service weather station at San Luis Obispo County Regional Airport. A Davis Turbo Wind meter was used to measure wind speed at the measurement site to cross-check wind speeds at the airport. The Turbo Wind meter is a high performance wind speed indicator with exceptional accuracy. 8.2 Precision of Sound Level Meters. The American National Standards Institute (ANSI) specifi es several types of sound levelmeters according to their precision. Types 1,2, and 3 are referred to as “precision,” “generalpurpose,” and “survey” meters, respectively. Most measurements carefully taken with a type 1 sound level meter will have an error not exceeding 1 dB. The corresponding error for a type 2 sound level meter is about 2 dB. The sound level meters used for measurements shown in this report are Larson-Davis Laboratories Model 820. These sound level meters meet all requirements of ANSI s1.4, IEC 651 for Type 1 accuracy and include the following features: 110 dB dynamic range for error free measurements. Measures FAST, SLOW, Unweighted PEAK, Weighted PEAK, Impulse, Leq, LDOD, LOSHA, Dose, Time Weighted Average, SEL, Lmax, Lmin, LDN. Time history sampling periods from 32 samples per second up to one sample every 255 seconds. Field calibration of each sound level meter with an external calibrator is accomplished before and after all fi eld measurements. Laboratory calibration of the all instruments is performed at least biannually and accuracy can be traced to the U.S. National Institute of Science and Technology standard. 8.3 Sound Level Measurement Method The protocol for conducting sound level measurements is prescribed in detail by the American Society for Testing and Materials (ASTM) in their E 1014 publication and the CalTrans Traffi c Noise Analysis Protocol. The procedures and standards in those documents are met or exceeded for sound level measurements shown in this report. The standards of ASTM E 1014 are exceeded by using Type 1 sound level meters for all measurements in this report instead of the less accurate Type 2 meters. Therefore, the precision of the measurements in this report is likely to be better than +/- 2 dB as stated in ASTM E1014. Particular and specifi c sound sources are identifi ed by listening to synchronous audio recordings of peak sound level events. 14.i Packet Pg. 405 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) SLO Brew Production page 24 7/3/15 Caltrans Noise Measurement Guidelines: Caltrans makes available general guide- lines for taking into account environmental elements in noise measurements. The following is an excerpt from their guidelines. The Traffi c Noise Analysis Protocol contains Caltrans noise policies, which fulfi ll the highway noise analysis and abatement/mitigation requirements stemming from the following State and Federal environmental statutes: • California Environmental Quality Act (CEQA) • National Environmental Policy Act (NEPA) • Title 23 United States Code of Federal Regulations, Part 772 “Procedures for Abatement of Highway Traffi c Noise and Construction Noise” (23 CFR 772) • Section 216 et seq. of the California Streets and Highways Code Noise Contour Modeling Noise contours incorporating the measured sound level values were generated using CADNA/A, an acoustical modeling program that incorporates the TNM 2.5 algorithms, and which was developed to predict hourly Leq values for free-fl owing traffi c conditions. This computer modeling tool, made by Datakustik GmbH, is an internationally accepted acoustical modeling software program, used by many acoustics and noise control professional offi ces in the U.S. and abroad. The software has been validated by comparison with actual values in many different settings. The program has a high level of reliability and follows methods specifi ed by the International Standards Organization in their ISO 9613-2 standard, “Acoustics – Attenuation of sound during propagation outdoors, Part 2: General Method of Calculation.” The standard states that, “this part of ISO 9613 specifi es an engineering method for calculating the attenuation of sound during propagation outdoors in order to predict the levels of environmental noise at a distance from a variety of sources. The method predicts the equivalent continuous A-weighted sound pressure level under meteorological conditions favorable to propagation from sources of known sound emissions. These conditions are for downwind propagation under a well- developed moderate ground-based temperature inversion, such as commonly occurs at night.” The computer modeling software takes into account source sound power levels, surface refl ection and absorption, atmospheric absorption, geometric divergence, meteorological conditions, walls, barriers, berms, and terrain variations. The CADNA/A software uses a grid of receivers covering the project site. 14.i Packet Pg. 406 Attachment: i - Noise Study (1303 : SLO Brew Night Club Text Amendment) 1 INITIAL STUDY ENVIRONMENTAL CHECKLIST FORM For CODE-1316-2015 1. Project Title: SLO Brew “The Rock” 2. Lead Agency Name and Address: City of San Luis Obispo 919 Palm Street San Luis Obispo, CA 93401 3. Contact Person and Phone Number: Rachel Cohen, Associate Planner 805-781-7574 4. Project Location: 855 Aerovista (APN 053-412-022) 5. Project Sponsor’s Name and Address: Auzco Development, LLC 835 Aerovista Place San Luis Obispo, CA 93401 Project Representative Name and Address: Steve Pults Steven Pults AIA & Associates 3592 Sacramento Street, Ste 140 San Luis Obispo, CA 93401 6. General Plan Designation: Business Park 7. Zoning: Business Park (BP) 14.j Packet Pg. 407 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) 2 8. Description of the Project: The applicant is requesting a text amendment to the Zoning Regulations and the Airport Area Specific Plan (AASP) to allow a Night Club as an allowed use, with a conditional use permit, in the Business Park (BP) zone. Attachment 1 shows the proposed changes to the Zoning Regulations and the AASP. The applicant is also requesting a use permit for a night club, to host live music around the existing rock outcropping in the outdoor patio area and inside a facility located at 855 Aerovista Place within the BP zone of the AASP. Events at the site would also include weddings (ceremonies indoors only), concerts and other large party events. The night club would operate only on Friday evenings, 5:00 pm to 11:00 pm, and Saturdays and Sundays, 10:00 am to 11:00 pm with no more than a maximum attendance of 600 people. The night club would operate at the SLO Brew Production Facility that is currently being constructed on the site. The SLO Production Facility was reviewed and approved by the Architectural Review Commission (ARC) for compliance with City’s Municipal Code, the AASP and design guidelines. The structure includes:  3,047 square foot entertainment venue,  6,496 square foot brewery production facility,  1,579 square foot beer tasting/restaurant area,  1,250 square foot kitchen,  600 square foot outdoor seating area,  15,444 square foot lease space, and  1,746 square feet of office and mezzanine area. 9. Setting and Surrounding Land Uses: The AASP has approximately 177.49 acres that are designated as BP zone (see Attachment 2, Zoning Designation Map). The SLO Brew Production Facility is located on a parcel that is 3.47 acres in size and is a part of the Aerovista Business Park which is composed of four parcels with a combined total acreage of 9.94 acres. The Aerovista Business Park includes the SLO Brew Production Facility, four, two-story office buildings which house a variety of professional offices (i.e. doctor’s office, tax services, government offices, etc.), and a fitness facility with a combined total of 444 parking spaces. The majority of these businesses operate from 8 am to 5 pm, Monday through Friday. 14.j Packet Pg. 408 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) 3 Figure 1: Vicinity Map; the red star indicates the location of 855 Aerovista Existing uses surrounding the site area are as follows: West: San Luis County Airport and associated buildings (outside the City’s limits). North: Undeveloped, zoned BP. East: (across Broad Street/Hwy 227) Currently being developed with industrial buildings, zoned C-S; just beyond the C-S zone and a creek are single-family residences, zoned R-1. South: Undeveloped, zoned BP. 10. Project Entitlements Requested: Use Permit: Use Permit approval is required to allow the Night club use within the Business Park zone. 11. Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement.): On December 16, 2015 the proposed use permit for the SLO Brew production facility at 855 Aerovista was referred to the Airport Land Use Commission (ALUC) for a determination of consistency or inconsistency with the Airport Land Use Plan (ALUP). The ALUC determined that the proposed Text Amendments and the request for a night club use permit for the SLO Brew facility were consistent with the ALUP. 14.j Packet Pg. 409 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) 4 ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a “Potentially Significant Impact” as indicated by the checklist on the following pages. Aesthetics Greenhouse Gas Emissions Population / Housing Agriculture Resources Hazards & Hazardous Materials Public Services Air Quality Hydrology / Water Quality Recreation Biological Resources Land Use / Planning X Transportation / Traffic Cultural Resources Mineral Resources Utilities / Service Systems Geology / Soils Noise Mandatory Findings of Significance FISH AND GAME FEES X The Department of Fish and Wildlife has reviewed the CEQA document and written no effect determination request and has determined that the project will not have a potential effect on fish, wildlife, or habitat (see attached determination). The project has potential to impact fish and wildlife resources and shall be subject to the payment of Fish and Wildlife fees pursuant to Section 711.4 of the California Fish and Wildlife Code. This initial study has been circulated to the California Department of Fish and Wildlife for review and comment. STATE CLEARINGHOUSE This environmental document must be submitted to the State Clearinghouse for review by one or more State agencies (e.g. Cal Trans, California Department of Fish and Wildlife, Department of Housing and Community Development). The public review period shall not be less than 30 days (CEQA Guidelines 15073(a)). 14.j Packet Pg. 410 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) 5 DETERMINATION (To be completed by the Lead Agency): On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made, by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. X I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a “potentially significant” impact(s) or “potentially significant unless mitigated” impact(s) on the environment, but at least one effect (1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and (2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (1) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (2) have been avoided or mitigated pursuant to that earlier EIR of NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. March 24, 2016 Signature Date Doug Davidson, Community Development Deputy Director For: Michael Codron Print Name Community Development Director 14.j Packet Pg. 411 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) 6 EVALUATION OF ENVIRONMENTAL IMPACTS: 1. A brief explanation is required for all answers except “No Impact” answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A “No Impact” answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g. the project falls outside a fault rupture zone). A “No Impact” answer should be explained where it is based on project-specific factors as well as general standards (e.g. the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis). 2. All answers must take account of the whole action involved, including off -site as well as on-site, cumulative as well as project-level, indirect as well as direct, and construction as well as operational impacts. 3. Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. "Potentially Significant Impact' is appropriate if there is substantial evidence that an effect may be significant. If there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required. 4. “Negative Declaration: Less Than Significant With Mitigation Incorporated” applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section 19, "Earlier Analysis," as described in (5) below, may be cross- referenced). 5. Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration (Section 15063 (c) (3) (D)). In this case, a brief discussion should identify the following: a) Earlier Analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state w hether such effects were addressed by mitigation measures based on the earlier analysis. c) Mitigation Measures. For effects that are “Less than Significant with Mitigation Measures Incorporated,” describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they addressed site-specific conditions for the project. 6. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7. Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 8. The explanation of each issue should identify: a) The significance criteria or threshold, if any, used to evaluate each question; and b) The mitigation measure identified, if any, to reduce the impact to less than significance 14.j Packet Pg. 412 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 7 1. AESTHETICS. Would the project: a) Have a substantial adverse effect on a scenic vista? 5, 10 --X-- b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, open space, and historic buildings within a local or state scenic highway? 2, 5, 10 --X-- c) Substantially degrade the existing visual character or quality of the site and its surroundings? 1, 10, 11 --X-- d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? 10,11, 12 --X-- Evaluation a-c) No Impact. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the Business Park (BP) zone of the Airport Area Specific Plan (AASP). The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. Adoption of the night club use permit would have no impact on scenic resources and no impact on visual quality within the BP zone; therefore, the proposed amendment and use permit will have no impact. d) Less than significant. The proposed text amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The BP zone is located in an already urbanized area with light sources from neighboring commercial and residential uses as well as light from vehicular circulation along neighboring streets. All existing and future projects are required to conform to the City’s Night Sky Preservation Ordinance (Zoning Regulations Chapter 17.23) which sets operational standards and requirements for li ghting installations, including requiring all light sources to be shielded and downward facing. The SLO Brew site proposes to have live entertainment outside of an existing facility near the airport. The use of outdoor lights will be required to comply with the to the City’s Night Sky Preservation Ordinance (Zoning Regulations Chapter 17.23). Consistent with SLO County Airport Land Use Commission recommendations, the project will be conditioned to prohibit all aerial laser lights and any lighting that will potentially interfere with the takeoff, landing, or maneuvering of aircraft at the Airport. Standard and special conditions will be included with the use permit to control light and glare. Therefore, impacts resulting from creating new sources of light will be less than significant. Conclusion: The project will have a less than significant impact on aesthetics. 2. AGRICULTURE RESOURCES. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? 1, 19, 27 --X-- b) Conflict with existing zoning for agricultural use or a Williamson Act contract? 1, 12, 27 --X-- c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? 1, 12, 27 --X-- d) Result in the loss of forest land or conversion of forest land to non-forest use? 1, 12, 27 --X-- e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non -forest use? 1, 12, 27 --X-- 14.j Packet Pg. 413 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 8 Evaluation a) No Impact. The proposed text amendment would establish a new allowable use – night clubs –, with a conditional use permit, within BP zone of the AASP. The City’s 2006 Open Space Element identifies a small portion of the BP zone as being farmland of local importance. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. As stipulated by the text amendment, any proposed night club uses will require environmental review, including the identification of farmland of local importance. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. The site was not identified as being Prime Farmland, Unique Farmland, Farmland of Statewide Importance, or farmland of local importance. Adoption of the night club use permit will have no impact on these Farmland resources. b) No Impact. The BP zone of the AASP is not intended for agricultural production. The proposed text amendment would expand allowable uses within the Business Park zone of the AASP to allow night clubs. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. Therefore, implementation of the text amendment and the use permit do not conflict with any Williamson Act contracts; as such, no impact would result. c-e) No Impact. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. No conversion of any land use that affects farmlands or forest land is proposed. No impact would occur. Conclusion: No Impact. 3. AIR QUALITY. Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? 9, 13, 20 --X-- b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? 9, 20 --X-- c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? 9, 20 --X-- d) Expose sensitive receptors to substantial pollutant concentrations? 9, 20 --X-- e) Create objectionable odors affecting a substantial number of people? 18, 26 --X-- Evaluation a-e) No Impact. The proposed text amendment would have no direct effect on air quality because it does not propose construction or development. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. This type of use is not anticipated to create additional air pollution and objectionable odors, or conflict with existing air quality plans. Therefore, the project has no 14.j Packet Pg. 414 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 9 impact to existing or proposed air quality plans, air quality standards, criteria pollutants and will not create objectionable odors affecting a substantial number of people. Conclusion: No Impact. 4. BIOLOGICAL RESOURCES. Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service? 5, 9, 17 --X-- b) Have a substantial adverse effect, on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, or regulations, or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service? 5, 9, 17 --X-- c) Have a substantial adverse effect on federally protected wetlands as defined in Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? 5, 9, 17 --X-- d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? 5, 9, 17 --X-- e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? 5, 9, 17 --X-- f) Conflict with the provisions of an adopted habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? 5, 9 --X-- Evaluation a-f) No Impact. The proposed text amendment would have no direct effect on biological resources . The proposed text amendment would have no direct effect on air quality because it does not propose construction or development. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. The SLO Brew site is not within a riparian corridor and there are no creeks or trees on the property. No endangered, threatened or other protected species have been reported on the project site. There are no local ordinances or habitat conservation plans that affect the proper ty or that identify the site as potential habitat for any protected species of plant or animal. Therefore, the amendment and the use permit would have no impact on endangered, threatened, or rare species or their habitats, or on locally designated species. Conclusion: No Impact. 5. CULTURAL RESOURCES. Would the project: a) Cause a substantial adverse change in the significance of a historic resource as defined in §15064.5. 5, 22, 23 --X-- b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to §15064.5) 22, 23 --X-- c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? 5, 22 --X-- d) Disturb any human remains, including those interred outside of formal cemeteries? 5, 22 --X-- 14.j Packet Pg. 415 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 10 Evaluation a-e) No Impact. The proposed text amendment will not cause substantial adverse change in the significance of cultural resources as defined in §15064.5 because the proposed text amendment does not authorize any particular development project, nor does it involve any changes to development standards that would change allowable development intensities, densities, or building footprints. The text amendment does not propose any changes to historic designations of any recognized historical sites or structures, and would not change or have any effect upon the City’s existing preservation objectives or policies. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. The site has not been identified as having historical significance. Based on review of the City’s Historic Site Map and Land Use Information System, the project is not located on or near a known sensitive archaeological site or historic resource. Therefore, the amendment and use permit would not authorize any adverse impacts to cultural resources; therefore, the project would have no impact. Conclusion: No Impact. 6. GEOLOGY AND SOILS. Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury or death involving: 4, 9, 27 I. Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. --X-- II. Strong seismic ground shaking? --X-- III. Seismic-related ground failure, including liquefaction? --X-- IV. Landslides? --X-- b) Result in substantial soil erosion or the loss of topsoil? 4, 5, 9 --X-- c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on or off site landslide, lateral spreading, subsidence, liquefaction or collapse? 4, 9 --X-- d) Be located on expansive soil, as defined in Table 1802.3.2 [Table 1806.2) of the California Building Code (2007) [2010], creating substantial risks to life or property? 4, 9 --X-- e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? 4,7, 9 --X-- Evaluation a, d) Less than Significant Impact. Although there are no fault lines on the within the AASP, the project site or within close proximity, the City of San Luis Obispo is located in an area of “High Seismic Hazards,” specifically Seismic Zone D, which means that future buildings constructed within the AASP or at 855 Aerovista will most likely be subjected to excessive ground shaking in the event of an earthquake. The City has regulations that structures must be designed in compliance with seismic design criteria established in the California Building Code for Seismic Zone D. To minimize this potential impact, the California Building Code and City Codes require new structures be built to resist such shaking or to remain standing in an earthquake. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed night cl ub at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. The project does not involve any changes to these code requirements. No impact from seismic ground failure as a result of the proposed text amendment and use permit. 14.j Packet Pg. 416 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 11 b) No Impact. No new construction is anticipated as a result of the amendment or the use permit as the new use would be located within existing structures that comply with City code and design guidelines. T herefore the project will not result in loss of topsoil. c) No Impact. The Safety Element of the General Plan indicates that the project site has a high potential for liquefactio n, which is true for most of the City. City Code requires development comply with all City Codes, including Building Codes, which require proper documentation of soil characteristics for designing structurally sound buildings to ensure new structure s are built to resist such shaking or to remain standing in an earthquake. The project does not involve any changes to these code requirements. No impact from on or off site landslide, lateral spreading, subsidence, liquefaction or collapse are as a resul t of the proposed text amendment and use permit. e) No Impact. Any new construction will be required to connect to the City’s sewer system. Septic tanks or alternative wastewater systems are not proposed and will not be used on the site. No new construction is an ticipated as a result of the amendment or the use permit as the new use would be located within existing structures that comply with the City’s Municipal Code, the AASP and design guidelines. Conclusion: Less than a significant impact. 7. GREENHOUSE GAS EMISSIONS. Would the project: a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? 9, 13, 14, 21 --X-- b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases. 1, 5, 9, 13, 14, 21 --X-- Evaluation As outlined in the recent City LUCE Update EIR, prominent GHG emissions contributing to the greenhouse effect are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). Anthropogenic (human‐caused) GHG emissions in excess of natural ambient concentrations are responsible for intensifying the greenhouse effect and have led to a trend of unnatural warming of the earth’s climate, known as global climate change or global warming. Global sources of GHG emissions include fossil fuel combu stion in both stationary and mobile sources, fugitive emissions from landfills, wastewater treatment, agricultural sources, deforestation, high global warming potential (GWP) gases from industrial and chemical sources, and other activities. The major sources GHG emissions in the City are transportation‐related emissions from cars and trucks, followed by energy consumption in buildings. These local sources constitute the majority of GHG emissions from community‐wide activities in the city, and combine with regional, statewide, national, and global GHG emissions that result in the cumulative effect of global warming, which is causing global climate change. A minimum level of climate change is expected to occur despite local, statewide, or other global efforts to mitigate GHG emissions. The increase in average global temperatures will result in a number of locally‐important adverse effects, including sea‐level rise, changes to precipitation patterns, and increased frequency of extreme weather events such as heat waves, drought, and severe storms. Statewide legislation, rules and regulations that apply to GHG emissions associated with the Project Setting include the Global Warming Solutions Act of 2006 (Assembly Bill [AB] 32), the Sustainable Communities and C limate Protection Act of 2008 (Senate Bill [SB] 375), Advanced Clean Cars Rule, Low Carbon Fuel Standard, Renewable Portfolio Standard, California Building Codes, and recent amendments to the California Environmental Quality Act (CEQA) pursuant to SB 97 with respect to analysis of GHG emissions and climate change impacts. Plans, policies and guidelines have also been adopted at the regional and local level that address GHG emissions and climate change effects in the City. The San Luis Obispo County Air Pollution Control District (APCD) adopted a CEQA Review Handbook, as well as guidance on GHG emission thresholds and supporting evidence, that may be applied by lead agencies within San Luis Obispo County (APCD 2012a, 2012b). The City also adopted a Climate A ction Plan (CAP) that includes a 14.j Packet Pg. 417 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 12 GHG emissions inventory, identifies GHG emission reduction targets, and includes specific measures and implementing actions to both reduce community‐wide GHG emissions. The CAP also includes measures and actions to help the city build resiliency and adapt to the effects of climate change. a, b) Less than Significant Impact. The proposed text amendment and use permit do not propose to amend any building regulations that would raise or otherwise change development levels that could contribute to an increase in greenhouse gas emissions. Adoption and implementation of the proposed text amendment and night club use permit would not affect building energy demands nor generate any additional vehicle trips (nor more miles traveled) beyond those associated with the General Plan and analyzed in the LUCE Update EIR. Review of future projects would continue to be carried out to ensure that the projects are consistent with all General Plan goals, objectives, and policies related to air quality and regional greenhouse gas reduction efforts. Adherence t o such policies and guidelines would reduce potential impacts to a less-than-significant level. Conclusion: Less than significant impact. 8. HAZARDS AND HAZARDOUS MATERIALS. Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? 4, 9 --X-- b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? 4, 9 --X-- c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? 4, 9 --X-- d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? 30 --X-- e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? 12, 27, 30 --X-- f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? 12 --X-- g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? 4, 9 --X-- h) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? 4, 9 --X-- Evaluation a -c) No Impact. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. This type of business provides entertainment, examples of which include live or recorded music and/or dancing, comedy, disc jockeys, etc., and may also serve alcoholic beverages for on-site consumption. The proposed text amendment would not directly result in any new construction or physical change to the environment. The proposed night club at 855 Aerovista Place will be located within an ex isting facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. The project does not involve any construction or changes to existing development standards and standard City practices and policies regarding hazardous waste and hazardous materials; no impact from the use, transport, or disposal of 14.j Packet Pg. 418 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 13 hazardous wastes or materials is anticipated. d) No Impact. The property located within the BP zone of the AASP is no t included on a list of hazardous materials sites compiled pursuant to Government Code § 65962.5. e) No Impact. The proposed text amendment would establish a new allowable use – night clubs –, with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards that would change allowable development intensities, densities, or building footprints and is generally intended to regulate uses within existing structures. The proposed text amendment would not directly result in any new construction or physical change to the environment. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. The San Luis Obispo County Airport Land Use Commission reviewed the proposed text amendment and use permit and determined they were consistent with the Airport Land Use Plan (ALUP) and wou ld not result in a safety hazard for people residing or working in the project area. f) No Impact. There are no private airstrips within the vicinity of the City of San Luis Obispo. No impact would result. g) No Impact. The project has been reviewed by the Fire Marshal and will not conflict with any emergency response plan or emergency evacuation plan. h) No Impact. The City of San Luis Obispo is considered a “community at risk” due to the threat of wildfire impacting the urban community. These potential risks are mitigated by use of ignition resistant construction methods and materials as required by the City Fire Marshal during the building plan check review process. The proposed text amendment does not propose construction or development. The proposed night club (SLO Brew) will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with the municipal code and the AASP. Conclusion: No Impact. 9. HYDROLOGY AND WATER QUALITY. Would the project: a) Violate any water quality standards or waste discharge requirements? 1, 16, 27 --X-- b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g. the production rate of pre -existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? 1, 16, 27 --X-- c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on or off site? 1, 15, 27 --X-- d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on or off site? 1, 15, 27 --X-- e) Create or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff? 1, 15, 27 --X-- f) Otherwise substantially degrade water quality? 1, 15, 27 --X-- g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? 1, 15, 27 --X-- h) Place within a 100-year flood hazard area structures which 1, 15, --X-- 14.j Packet Pg. 419 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 14 would impede or redirect flood flows? 27 i) Expose people or structures to significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? 1, 15, 27 --X-- j) Inundation by seiche, tsunami, or mudflow? 11, 12, --X-- Evaluation a, c-f) No Impact. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed text amendment would not directly result in any new construction or physical change to the environment. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. Since no construction is proposed, the proposed text amendment and use permit will not cause violation of any water quality standards, s ubstantially alter the existing drainage pattern of the site or area, create or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff waste discharge requirements. b) No Impact. The project will be served by the City’s sewer and water systems and will not deplete groundwater resources. g-j) No Impact. The proposed text amendment and use permit are not part of a development project and do not include any new construction and therefore will not place housing or other structures within flood haza rd areas or expose people or structures to significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam or inundation by seiche, tsunami, or mudflow. Conclusion: No Impact. 10. LAND USE AND PLANNING. Would the project: a) Physically divide an established community? 1, 10, 27 --X-- b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? 1, 9, 27, 31 --X-- c) Conflict with any applicable habitat conservation plan or natural community conservation plan? 5, 12 --X-- Evaluation a) No Impact. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. Surrounding properties are zoned Conservation/Open Space, Service Commercial or Manufacturing uses. Night club use is allowed in the Service Commercial zone and is consistent with the Airport Land Use Plan (ALUP). The proposed night club at 855 Aerovista Place is surrounded by other properties that are zoned BP within a n existing building within the Aerovista Business park. Therefore, the text amendment and the use permit do not divide an established community. b) No Impact. The proposed text amendment and use permit are requesting a night club – “a facility providing entertainment, examples of which include live or recorded music and/or dancing, comedy, disc jockeys, etc., which may also serve alcoholic beverages for on-site consumption” within the BP Zone of the AASP. In this particular request, the proposed use is no t for a typical night club with late hours and dancing. Instead, the reason for delineating the requested use as a night club is to a llow for the ability to provide live music and entertainment. The proposed use is consistent with the Title 17 of the City’s Municipal Code, the General Plan and the AASP which states “activities that are supportive of, or accessory to, the primary activities may be allowed as well” (AASP Section 4.2.1.). On December 16, 2015 the ALUC reviewed the proposed the project and determined that the proposed Text Amendments and the request for a night club use permit for the SLO Brew 14.j Packet Pg. 420 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 15 facility were consistent with the ALUP. There are no other applicable plans to this site. c) No Impact. There are no applicable habitat conservation plans that would affect the text amendment or the use permit. Conclusion: No impact. 11. MINERAL RESOURCES. Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? 5 --X-- b) Result in the loss of availability of a locally-important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? 5 --X-- Evaluation a, b) No Impact. The proposed text amendment would establish a new allowable use – night clubs –, with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed text amendment would not directly result in any new construction or physical change to the environment. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. Therefore, the project is not expected to impact mineral resources. Conclusion: No impact 12. NOISE. Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? 3, 9, 29 --X-- b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? 3, 9, 29 --X-- c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? 3, 9, 29 --X-- d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? 3, 9, 29 --X-- e) For a project located within an airport land use plan, or where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? 3, 27, 31 --X-- 3 --X-- Evaluation As analyzed in the City’s LUCE Update EIR, a number of noise‐sensitive land uses are present within the City, including various types of residential, schools, hospitals and care facilities, parks and recreation areas, hotels and transient lodging, and place of worship and libraries. Based on ambient noise level measurements throughout the City, major sources of noise include traffic noise on major roadways, passing trains, and aircraft overflights. a) Less than significant impact. The proposed text amendment will allow night club use within the BP zone of the AASP. The proposed text amendment would not directly result in any new construction or physical change to the environment. As part of the text amendment, the night club use would be conditionally permitted in the BP zone. The SLO Brew night club is anticipated to generate noise from live performances. A Noise Study was prepared for this project by David Lord (July 1015) to analyze noise levels that may be generated from the project. The noise study concludes 14.j Packet Pg. 421 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 16 that the maximum noise level established in the 1996 General Plan Noise Element of 70 dBA will not exceeded at the property line. This analysis includes sound from a “capacity” event of 600 attendees, with speakers and audience (cheering) noise. Additionally, live events will be scheduled when the adjacent office buildings are vacant for the weekend. Residential areas are designated as noise sensitive by the Noise Element. The Noise Element indicates that noise levels of 60 dB are acceptable for outdoor activity areas. The nearest residential receptor is approximately 890 feet from the proposed performance area and the Noise Study shows that exterior noise levels will be 60 dB or less due to the distance from venue, presence of a large building which acts a noise barrier, and the continuous traffic on State Route 227. Therefore, exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies are anticipated to be less than significant. b) Less than significant. The proposed text amendment will allow night club use within the BP zone of the AASP. The proposed text amendment would not directly result in any new construction or physical change to the environment. As part of the text amendment, the night club use would be conditionally permitted in the BP zo ne. The proposed night club (SLO Brew) is not anticipated to generate groundborne vibration or noise levels. Therefore, exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels is anticipated to be less than significant. c, d) Less than significant. The proposed text amendment would establish a new allowable use – night clubs –, with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed text amendment would not directly result in any new construction or physical change to the environment. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. The proposed night club (SLO Brew) may result in short term event-related noise; however, the use would not result in substantial on-going ambient noise. d) Less than significant. The proposed night club (SLO Brew) may result in short term periodic event related noise, however, the use would not result in substantial on-going ambient noise above existing levels since it would comply with noise limitations established in the Noise Element of the General Plan and the Noise Guidebook and restricted to the hours and noise levels allowed by City ordinance. e) Less than significant. The San Luis Obispo County Airport Land Use Commission reviewed the proposed text amendment and use permit and determined a night club was not noise sensitive use. As noted in section XII a above, the SLO Brew night club is anticipated to generate noise from live performances. A Noise Study was prepared for this project by David Lord (July 1015) to analyze noise levels that may be generated from the project as well as noise generated by the airport. The noise study identifies that the site is within the project 65 dBA airport single event noise contour which is an acceptable outdoor noise exposure per the noise element of the General Plan. f) No Impact. There are no private airstrips within the vicinity of the BP zone and 855 Aerovista Place. No impact would result. Conclusion: Less than significant impact 13. POPULATION AND HOUSING. Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? 1, 2, 6, 27, 31 --X-- b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? 1, 6, 27, 31 --X-- 1, 6, 27, 31 --X-- Evaluation: a) Less than significant. The proposed text amendment would establish a new allowable use – night clubs –, with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development 14.j Packet Pg. 422 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 17 standards, and is generally intended to regulate uses within existing structures. The proposed text amendment would not directly result in any new construction or physical change to the environment. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. New employment generated by the proposed use would not be considered substantial. Considering the project area is currently developed, and the proposed project would utilize existing infrastructure at the subject location, the project would not induce additional growth that would be considered significant. No upgrades to the existing infrastructure would be required to serve the project. The proposed project would not involve any other components that would induce further growth not already anticipated under the General Plan envisioned under the current site zoning designation. Impacts are considered less than significant. b,c) No Impact. The proposed text amendment and use permit do not propose construction or development of housing and would not displace substantial numbers of existing housing or people, necessitating the construction of replacement housing. Therefore the project would have no impact. Conclusion: Less than significant impact. 14. PUBLIC SERVICES. Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: a) Fire protection? 4, 9 --X-- b) Police protection? 4, 9 --X-- c) Schools? 9 --X-- d) Parks? 5 --X-- e) Other public facilities? 9 --X-- Evaluation a) Less than significant. The proposed text amendment would establish a new allowable use – night clubs –, with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed text amendment would not directly result in any new construction or physical change to the environment. The proposed night club at 855 Aerovista Place will be located within an existing facili ty that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. As such, The City has adequate fire protection services to serve the proposed text amendment and use permit without the need for new facilities or services. b) Less than significant. T he project site is served by the City of San Luis Obispo Police Department for police protection services. The proposed text amendment would not directly result in any new construction or physical change to the environment. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with the municipal code and the A ASP. The applicant has also submitted a supplemental security management plan that identifies staff security operations, training and management program to control alcohol-related issues, safety and security and other potential issues that may occur or be associated with this use. The Police Department has reviewed the proposed use permit and determined it would not result in the need for increased patrols or additional units such that new police facilities would need to be constructed. There would be no physical impacts related to the construction of new police facilities, and i mpacts related to police protection would be less than significant. c, d) No Impact. The proposed text amendment and use permit will not impact schools, parks and/or park service s since the project will not create new or demand for new housing. e) No Impact. There are no other applicable public facilities that could be impacted by the text amendment or use permit. Conclusion: Impacts are considered less than significant. 14.j Packet Pg. 423 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 18 15. RECREATION. a) Would the project increase the use of existing neighborhood or regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? 1, 9, 27 --X-- b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? 1, 9, 27 --X-- Evaluation: a, b) No Impact. The proposed text amendment and use permit will not impact parks or other recreation facilities because no new construction is anticipated as part of the text amendment and use permit. Conclusion: Less than significant impact 16. TRANSPORTATION/TRAFFIC. Would the project: a) Conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation including mass transit and non-motorized travel and relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? 2, 9, 27 --X-- b) Conflict with an applicable congestion management program, including, but not limited to level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? 2, 9 --X-- c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? 31 --X-- d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g. farm equipment)? 2, 9 --X-- e) Result in inadequate emergency access? 2, 4, 9 --X-- f) Conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or otherwise decrease the performance or safety of such facilities? 2, 27 --X-- Evaluation Evaluation a) Less than significant with mitigation incorporated. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed text amendment would not directly result in any new construction or physical change to the environment and would not impact the performance of the circulation system. The proposed night club use at 855 Aerovista will operate on Friday evenings from 5:00 pm to 11:00 pm, and Saturdays and Sundays, 10:00 am to 11:00 pm with no more than a maximum attendance of 600 people. The night club use is anticipated to generate more than 100 trips during peak hour (5:00 pm to 6:00 pm), increasing congestion on State Route 227/Broad Street. To mitigate this impact the project will be conditioned such that events related to the night club use permit are prohibited during peak traffic hours (4:00 pm to 6:00 pm. In addition the project will be condition such that if congestions levels exceed local or state thresholds at any time during night club use permit hours additional permit restrictions may be applied to the 14.j Packet Pg. 424 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 19 satisfaction of the Public Works Department to ensure compliance with City General Plan policies.As such, the project could result in significant but mitigatable impacts related to the performance of the circulation system. b) Less than significant. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures with existing infrastructure. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. Regional access to the project site is provided by Highway 101, located west of the project site. Local access to the project site is provided by SR 227/Broad Street and Aerovista Place. All roadways in the immediate project vicinity have curbs, gutters, sidewalks, and on-street parking. The project does not conflict with any applicable circulation system plans and does not significantly add to demand on the circulation system or conflict with any congestion management programs or any other agency’s plans for congestion management. c) No Impact. The proposed text amendment and use permit would not result in a change in air traffic patter ns and/or increase in air traffic levels that would result in substantial safety risks. d) No Impact. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed night club at 855 Aerovista Place will be locate d within an existing facility that was reviewed and approved by t he Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. The project does not involve the construction of any roadway and would have no effect on the City’s street and site design standards. e) No Impact. The proposed text amendment and use permit do not involve any road construction or any development activity and thus will not obstruct or restrict emergency access to or through the City. As p roposed, the project would not alter the existing travel flow of vehicles, bicyclists, or pedestrians or substantially increase traffic on local streets. Therefore, the proposed project would not have a negative effect on emergency access. f) No Impact. The proposed text amendment and use permit would not conflict with adopted polices, plans or programs regarding public transit, bicycle, or pedestrian facilities, or otherwise decrease the performance or safety of such faciliti es. The Regional Transportation Authority (RTA) bus line Route 10 Express (10X) is locate d within walking distance of the proposed night club at 855 Aerovista Place allows public transportation services to and from the Downtown Transit Center. City standards require provision of on-site bicycle storage. The proposed project includes a 12 shor t term bicycle parking spaces and 3 long term bicycle lockers that meets code requirements. Mitigation Measure T-1: Night club use permit events shall not be permitted on Fridays between the hours of 4:00 pm and 6:00 pm. Mitigation Measure T-2: Vehicle trips associated with the subject property shall be less than 35 per hour (the base trip generation for the brewery manufacturing and restaurant use excluding the event use) on Fridays between the hours of 4:00 p.m. to 6:00 p.m. If the number of trips e xceeds the 35 trips per hour threshold during this period, then the events permitted under this use permit related to the night club use shall be further prohibited on Friday night up until 8:00 pm or prohibite d on Friday nights altogether, at the discretion of the Public Works Director. Conclusion: Less than significant impact 17. UTILITIES AND SERVICE SYSTEMS. Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? 7,16 --X-- b) Require or result in the construction or expansion of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? 7,16 --X-- 14.j Packet Pg. 425 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 20 c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? 7, 9, 16 --X-- d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new and expanded entitlements needed? 7,16 --X-- e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project’s projected demand in addition to the provider’s existing commitments? 7,16 --X-- f) Be served by a landfill with sufficient permitted capacity to accommodate the project’s solid waste disposal needs? 8 --X-- g) Comply with federal, state, and local statutes and regulations related to solid waste? --X-- Evaluation a-e) Less than significant. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed text amendment would not directly result in any new construction or result in an incremental increase in demand on City infrastructure, including wat er, wastewater and storm water facilities. The proposed night club at 855 Aerovista Place will be located within an existing facility that would result in an incrementa l increase in demand on City infrastructure, including water, wastewater and storm wate r facilities. Development of the site is required to be served by City sewer and water service, which both have adequate capacity to serve the use. Existing storm water facilities are present in the vicinity of the project site, and it is not anticipated t he proposed project will result in the need for new facilities or expansion of existing facilities which could have significant environmental effects . f, g) Less than significant. The proposed text amendment would establish a new allowable use – night clubs – with a conditional use permit, within the BP zone of the AASP. The amendment does not propose any changes to development standards, and is generally intended to regulate uses within existing structures. The proposed night club at 855 Aerovista Place will be located within an existing facility that was reviewed and approved by the Architectural Review Commission for compliance with City’s Municipal Code, the AASP and design guidelines. San Luis Garbage has reviewed the location and size of enclosures at the SLO Brew Production Facility and determined that they are sufficient in size to handle the all the garbage and recycling for the facility. Conclusion: Less than significant impact. 18. MANDATORY FINDINGS OF SIGNIFICANCE. a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? --X-- As identified in the biological evaluation and the cultural resource evaluation, the text amendment and use permit would not degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildl ife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or and there are no examples of the major periods of California history or prehistory on the project site. b) Does the project have impacts that are individually limited, but --X-- 14.j Packet Pg. 426 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 21 cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of the past projects, the effects of other current projects, and the effects of probable future projects)? Potential cumulative impacts of the project on air quality, biological resources and water quality have been adequately reduced, avoided and mitigated to not result in cumulatively considerable impacts. c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? --X-- This project could not result in substantial adverse effects on human beings, either directly or indirectly. 19. EARLIER ANALYSES. Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, one or more effects have been adequately analyzed in an earlier EIR or Negative Declaration. Section 15063 (c) (3) (D). In this case a discussion should identify the following items: a) Earlier analysis used. Identify earlier analyses and state where they are available for review. N/A b) Impacts adequately addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. N/A c) Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site -specific conditions of the project. N/A 20. SOURCE REFERENCES. 1. City of SLO General Plan Land Use Element, December 2014 2. City of SLO General Plan Circulation Element, December 2014 3. City of SLO General Plan Noise Element, May 1996 4. City of SLO General Plan Safety Element, March 2012 5. City of SLO General Plan Conservation & Open Space Element, April 2006 6. City of SLO General Plan Housing Element, January 2015 7. City of SLO Water and Wastewater Element, July 2010 8. City of SLO Source Reduction and Recycling Element, on file in the Utilities Department 9. City of San Luis Obispo Municipal Code 10. City of San Luis Obispo Community Design Guidelines, June 2010 11. City of San Luis Obispo, Land Use Inventory Database 12. City of San Luis Obispo Zoning Regulations March 2015 13. City of SLO Climate Action Plan, August 2012 14. 2013 California Building Code 15. City of SLO Waterways Management Plan 16. Water Resources Status Report, July 2012, on file with in the Utilities Department 17. Site Visit 18. City of San Luis Obispo Staff Knowledge 19. Website of the Farmland Mapping and Monitoring Program of the California Resources Agency: http://www.consrv.ca.gov/dlrp/FMMP/ 20. CEQA Air Quality Handbook, Air Pollution Control District, April 2012 21. Institute of Transportation Engineers, Trip Generation Manual, 9 th Edition, on file in the Community Development Department 22. City of San Luis Obispo, Archaeological Resource Preservation Guidelines, on file in the Community Development Department 14.j Packet Pg. 427 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Issues, Discussion and Supporting Information Sources CODE-1316-2015 Sources Potentially Significant Issues Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact 22 23. City of San Luis Obispo, Historic Site Map 24. Not used 25. Site Plan 26. Applicant project statement/description 27. Airport Area Specific Plan 28. Website of California Department of Transportation http://dot.ca.gov/dist05/planning/maps/scenic_highway_system.pdf 29. Sound Level Assessment for SLO Brew Production Building by David Lorde, July 3, 2015 30. Website of the California Environmental Protection Agency, Cortese List: http://calepa.ca.gov/sitecleanup/corteselist/default.htm 31. Airport Land Use Plan (ALUP) Attachments: 1. Amendments to Title 17 (Zoning Regulations) and the Airport Area Specific Plan 2. Zoning Designation Map 3. Site Plan 4. Sound Level Assessment for SLO Brew Production Building by David Lorde, July 3, 2015 REQUIRED MITIGATION AND MONITORING PROGRAMS Transportation/Traffic Mitigation Measure T-1: Night club use permit events shall not be permitted on Fridays between the hours of 4:00 pm and 6:00 pm.  Monitoring Plan, T-1: The hours of operation shall be included as part of the business license application and will be incorporated as part of the conditions of approval for the use permit . City staff will periodically inspect the site for continued compliance with the above mitigation measures. Mitigation Measure T-2: Vehicle trips associated with the subject property shall be less than 35 per hour (the base trip generation for the brewery manufacturing and restaurant use excluding the event use) on Fridays between the hours of 4:00 p.m. to 6:00 p.m. If the number of trips exceeds the 35 trips per hour threshold during this period, then the events permitted under this use permit related to the night club use shall be further prohibited on Friday night up until 8:00 pm or prohibited on Friday nights altogether, at the discretion of the Public Works Director.  Monitoring Plan, T-2: Within one year of the effective date of this use permit and annually thereafter, City staff will periodically conduct traffic counts during Friday events to determine the number of trips associated with the Subject property on Friday night between the hours of 4:00 p.m. to 6:00 p.m. 14.j Packet Pg. 428 Attachment: j - SLO Brew initial study (1303 : SLO Brew Night Club Text Amendment) Planning Commission Minutes DRAFT SAN LUIS OBISPO PLANNING COMMISSION MEETING MINUTES Wednesday, February 10, 2016 CALL TO ORDER A Regular Meeting of the San Luis Obispo Planning Commission was called to order on Wednesday, February 10, 2016 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Chairperson Larson. PLEDGE OF ALLEGIANCE Chair Larson led pledge of Allegiance. ROLL CALL Commissioners Present: Hemalata Dandekar, Michael Draze, Ronald Malak, William Riggs, John Fowler, Vice-Chairperson Michael Multari, and Chairperson John Larson. City Staff Present: Deputy Community Development Director Doug Davidson, Associate Planner Rachel Cohen, Contract Planner John Rickenbach, Community Development Director Michael Codron, Assistant City Attorney Jon Ansolabehere, Assistant City Clerk John Paul Maier, and Recording Secretary Brad T. Opstad. ACCEPTANCE OF THE AGENDA The agenda was accepted as presented. CONSIDERATION OF MINUTES Motion to approve Minutes of the Planning Commission meeting of December 9, 2015, as presented, made by Commissioner Draze, seconded by Commissioner Malak, passed 7-0. PUBLIC COMMENTS ON NON-AGENDA ITEMS None. DRAFT14.k Packet Pg. 429 Attachment: k - PC Draft Minutes 02-10-2016 (1303 : SLO Brew Night Club Text Amendment) Planning Commission Minutes of February 10, 2016 Page 2 PUBLIC HEARING 1. Airport Area Specific Plan & 855 Aerovista Place. CODE-1316-2015: Review a request to amend the Airport Area Specific Plan and Zoning Regulations to allow a Night Club land use (live indoor/outdoor entertainment) within the Business Park zone with a use permit and review a request for a use permit for a Night Club, shared and mixed-used parking reduction and off-site parking at 855 Aerovista Place; exempt per the General Rule Section 15061(b)(3) and categorically exempt from environmental review; BP-SP zone; Auzco Development, LLC, applicant. Associate Planner Rachel Cohen presented the staff report and stated that Staff is recommending additional language to amend the Zoning Regulations, Table 9, to allow night club use in the Business Park (BP) zone with a use permit, as well as amend the Airport Area Specific Plan (AASP) to allow night club use in the Business Park (BP) zone, Table 4.3, with a use permit. Hamish Marshall, representing the applicant SLO Brewing Company, described the project and displayed a PowerPoint slide depicting the Master Site Plan of Aerovista Business Park to illustrate reciprocal parking rights and the conceptual plan for parking after 5:30 p.m. PUBLIC COMMENT Mila Vujovich-La Barre, San Luis Obispo, expressed objections to the project because of the location and asked if neighbors were adequately noticed. Mike Manchak, Lisa McCann and Steve Delmartini, all of San Luis Obispo, provided comments in support of the project. COMMISSION DISCUSSION In response to Commission inquiry regarding noise levels, Deputy Director Davidson indicated that Staff supports the analysis in the Sound Level Assessment report provided by the applicant, which concludes that the project is compatible with the Airport and, further that is in conformance with City regulations. Planner Cohen confirmed that the City had provided adequate notice to tenants and owners of neighboring properties within 300-feet of the proposed project. In response to inquiry by Chair Larson, Hamish Marshall indicated that SLO Brew has 3,200 square feet of indoor space and is proposing that about 80% of the concerts will be held outdoors. In response to Commissioner Fowler’s inquiry, Planner Cohen responded that in the BP zone, light manufacturing use is allowed. Deputy Director Davidson added that a tasting room, technically a bar, was approved at the administrative use permit level. In response to Commissioner Dandekar’s inquiry, Deputy Director Davidson reported that there are two ways uses can be approved in this site-specific context: namely by changing the text on DRAFT14.k Packet Pg. 430 Attachment: k - PC Draft Minutes 02-10-2016 (1303 : SLO Brew Night Club Text Amendment) Planning Commission Minutes of February 10, 2016 Page 3 the chart or by changing the underlying zoning to something that would allow for it. He mentioned that Staff opted for altering the chart text because it was the most direct and appropriate method and noted that a case-by-case study would follow for all other locations that might not contain this site’s unique tenets. Chair Larson pointed that San Luis Obispo has only three BP zones and that Staff has added a footnote to Table 9 to reflect that this particular change would only affect the BP zone in the Airport Area. He added that this geographically-narrows the possibility for this type of application in the future to those areas in the BP zone strictly within the AASP. Commissioner Riggs suggested that Staff address underlying zoning issues insofar as uses are becoming increasingly general and the Commission is still operating with code requirements that do not reflect the generality of many of these evolving uses. Commissioner Dandekar requested more information about the proper definition for what the applicant is proposing. Associate Planner Cohen explained that live entertainment is part of the description for a “night club”. Deputy Director Davidson added that designating it an “amphitheatre” presents problems. In response to Chair Larson’s inquiry about 61 spaces offsite proposed for parking, Associate Planner Cohen explained that the plan provides parking for existing uses as well as for the new use through an agreement with other parcel owners. Commissioner Draze made a motion to approve a Resolution recommending to the City Council the approval of amendments to Title 17 (Zoning Regulations) and the Airport Area Specific Plan to allow night club land use within the Business Park zone; as amended (changes to Exhibits A and B to specify that a night club use in the Business Park zone (Airport Area only by footnote) requires a Planning Commission Use Permit instead of a Director’s (Administrative) Use Permit; Commissioner Malak seconded the motion. Chair Larson requested clarification of Section 3 of the Resolution regarding “all tall structures”. Associate Planner Cohen reported that the Airport Land Use Commission requested the condition because the AASP has a building height restriction, which would apply. On the motion by Commissioner Draze, seconded by Commissioner Malak, the Resolution was adopted by the following roll call vote: AYES: Draze, Malak, Fowler, Larson, Dandekar NOES: Multari REFRAIN: Riggs ABSENT: None Motion passed 6-1. Commissioner Riggs made a motion to approve a Resolution recommending to the City Council approval of a request to allow a night club and off-site parking in the Business Park Zone, with a categorical exemption from environment review; as amended (Condition Number 2 - hours of operation to 6 p.m. and consolidate Condition #6 within #13 to be clear that the conditions will be combined into one in compliance with the security plan); Commissioner Draze seconded the DRAFT14.k Packet Pg. 431 Attachment: k - PC Draft Minutes 02-10-2016 (1303 : SLO Brew Night Club Text Amendment) Planning Commission Minutes of February 10, 2016 Page 4 motion. In response to Chair Larson’s inquiry about Condition 4, Associate Planner Cohen confirmed that Staff has the ability to require alternative offsite parking measures if parking availability becomes an issue. Commissioner Malak offered an amendment to the motion to add a recommendation that Council consider the installation of solar panels and solar canopies on the property. The motion amendment failed for lack of a second. On the motion by Commissioner Riggs, seconded by Commissioner Draze, the Resolution was adopted by the following roll call vote: AYES: Riggs, Draze, Fowler, Larson, Dandekar NOES: Malak, Multari ABSENT: None Motion passed 5-2. Chair Larson called for recess at 7:58 p.m. Vice-Chair Multari reconvened the meeting back to order at 8:06 p.m. and introduced the next item. PUBLIC HEARING 1. 1035 Madonna Road. ANNX-1502-2015: Conceptual review of land use-related issues for the San Luis Ranch Specific Plan (Chapters 1-4), requesting feedback related to the plan development; Coastal Community Builders. (John Rickenbach) Commissioner Riggs departed the dais; Chair Larson recused himself due to a potential conflict of interest. Contract Planner John Rickenbach provided the staff report and outlined key questions for Commission input, including how well the Specific Plan responds to the General Plan requirements, the envisioned land use mixture and pattern, the Open Space Requirement and Policy 8.1.4, product types and densities relative to what is contained in the LUCE, community character and neighborhood form, and the interfaces between residential and commercial/agricultural. In response to Commissioner Malak’s inquiry regarding product types and densities having reached perceived saturation points, Planner Rickenbach responded that this project is a long- range, market-driven planning effort providing for future-envisioned needs. In response to Commissioner Malak’s inquiry concerning three billboards on 101 and the potential conditioning of contractual language toward their removal as part of the project, Assistant City Attorney Jon Ansolabehere stated that the highly litigated billboard industry has a fairly comprehensive statutory scheme regarding removal. RRM Design Architect, Scott Martin, representing the applicant, provided an overview of the proposed project and highlights of the planned amenities. In response to Commission inquiry, DRAFT14.k Packet Pg. 432 Attachment: k - PC Draft Minutes 02-10-2016 (1303 : SLO Brew Night Club Text Amendment) Meeting Date: 4/19/2016 FROM: Monica Irons, Director of Human Resources Prepared By: Greg Zocher, Human Resources Manager SUBJECT: MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION (POA) FOR THE PERIOD OF 01/01/2016 - 06/30/2018 RECOMMENDATION Adopt a resolution ratifying the Memorandum of Agreement (MOA) with a two and a half year term between the City of San Luis Obispo and the POA (Attachment A). DISCUSSION Background POA represents 65 police employees; 46 sworn Police Officers and 19 non-sworn personnel including Communications Technicians (dispatchers), Police Records Clerks, a Property and Evidence Clerk, Field Service Technician, and Evidence Technician. The current MOA with this group expired December 31, 2015. Starting in early December, the parties held six negotiation meetings concluding with a tentative agreement for a successor MOA on February 4, 2016. The tentative agreement was unanimously ratified by the POA membership on February 24, 2016. Since that time staff has worked with POA representatives to finalize MOA language and prepare this report. In preparation for negotiations with employee groups, Council adopted the following Labor Relations Objectives (LRO) in September 2014: 1. Maintain fiscal responsibility by ensuring that fair and responsible employee compensation expenditures are supported by on-going revenues. 2. Continue to make progress in the area of long-term systemic pension cost containment and reduction, including reversing the unfunded pension liability trend and other actions consistent with State law. 3. Continue to effectively manage escalating health benefit costs through balanced cost sharing and other means while maintaining comprehensive health care coverage for all eligible employees. 4. As necessary to attract and retain well qualified employees at all levels of the organization, provide competitive compensation as articulated in the City’s Compensation Philosophy (Attachment C). 15 Packet Pg. 433 These objectives guided negotiations with POA resulting in the agreement and resolution before Council. Consistent with the LRO adopted by Council the agreement includes modest cost of living salary increases, items aimed at addressing recruitment and retention issues, and continued sharing of health insurance and pension costs. The City has experienced challenges recruiting and retaining Police Officers and Communications Technicians as evidenced by turnover data. Turnover data from 2006 through 2015 indicates a marked increase in the last three years. Police Department turnover for 2006 through 2012 averaged 4%; in comparison, the average turnover for 2013 through 2015 is 14%. While turnover from retirement is normal and can be planned for accordingly, the increase in turnover corresponds with an increase in Police Officers leaving for other reasons (e.g. other employment, moving out of the area, and/or performance issues). Several months ago the Police Department started continually recruiting for Police Officers in an effort to establish healthy eligibility lists of qualified candidates from which to fill the continual vacancies. However, a lower than typical second tier retirement benefit (2% at 50 formula, while many other agencies have 3% @ 55 or no second tier retirement formula) and the high number of other agencies actively and continuously recruiting for police officers, hinders the City’s ability to effectively recruit in this critical area. The 2014 Benchmark Compensation Study indicated Police Officer salary and total compensation was at market median, while Communications Technician salary and total compensation was slightly above the median. Updated information indicates Communications Technicians are 1.6% below and Police Officers are almost 4% below market median. Given the critical nature of the work performed, the number of agencies competing for talent, the City’s ongoing difficulty recruiting qualified Police Officers, an inability to use temporary staff to fill Police Officer or Communications Technicians vacancies due to the nature of the job and required State certifications, the significant investment in training for these positions, and the turnover experienced, the proposed tentative agreement includes modest adjustments to bring salaries closer to the market median. In determining an appropriate cost of living adjustment, changes in the labor market and Consumer Price Index (CPI), historical changes in compensation, and fiscal responsibility were considered. During the six year period of 2010-15 the CPI for San Francisco-Oakland-San Jose increased 15.1%. It has been six years (January 2009) since POA received a cost of living increase of 5%. During that same timeframe, POA agreed to a 6.8% total compensation reduction through 4% salary reduction, a 3% increased contribution toward CalPERS retirement, waiving uniform allowance and continued sharing of health insurance cost increases. POA Agreement 15 Packet Pg. 434 Rick Bolanos, Partner with the law firm Liebert Cassidy Whitmore, represented the City as Chief Negotiator along with Monica Irons, Human Resources Director; Jeff Smith, Police Lieutenant; and Greg Zocher, Human Resources Manager. Stuart Adams, Partner with the law firm Adams Ferrone & Ferrone, represented the POA along with Aaron Schafer, Pol ice Officer; Adam Stahnke, Police Officer; Eric Vitale, Police Officer; Christy McCornack, Communications Technician; Amy Chastain, Police Officer; and Robert Cudworth, Police Officer. POA’s proposals were focused and thoughtful with the intent of addressing mutual interests around recruitment, retention, and operational issues. POA members are committed to providing high quality service to the community and recognize the City’s commitment to fiscal responsibility. Following is a summary of the key changes included in the successor POA MOA: 1. Two and one half year Term of Agreement: January 1, 2016 – June 30, 2018; 2. A 2% cost of living increase each year of the agreement (effective in January 2016, January 2017 and January 2018); 3. A Recruitment and Retention Market Adjustment: a. 1% Effective July 2016. b. 1% Effective July 2017. 4. Health Insurance Contribution - Maintain the current cost-sharing arrangement that increases the City contribution by 50% of the average percent increase in CalPERS medical premiums (for example, if the average increase in CalPERS medical premiums increases ten percent, the City contribution would increase five percent, while employees absorb the remainder of the increased cost); 5. Uniform Allowance $1,000 per year for sworn and $500 per year for non-sworn. 6. Other minor low cost changes to address recruitment and retention and ensure competitiveness: a. Increase bilingual pay, b. Field training incentive when assigned a trainee, c. Increase standby pay for Investigators/Bomb Technicians; 7. Other minor changes including updating dates, revising MOA language to reflect current Federal and State law, and clarifying operational language with no cost. The two and a half year term expires June 30, 2018, providing stability in the 2015-17 financial plan and through the 2017-19 supplement. In addition, the POA agreement is reasonable for a number of reasons: 1. The cost of living adjustments, recruitment and retention market adjustments, and health insurance contributions are consistent with Council’s LRO, are modest, and can be accommodated in the City’s Five Year Forecast. 2. Uniform allowance, field training incentive, and bilingual pay are typical in the market. These incentives are flat rates, and as such, do not escalate with increases to salary. The majority of comparable agencies in the 2014 Compensation Study offer similar allowances, which will make our agency more competitive when recruiting. FISCAL IMPACT The cumulative annual ongoing total compensation cost after all items in the two and a half year term are implemented is approximately $795,000. Funding is available in the current 2015-17 15 Packet Pg. 435 Financial Plan for cost increases resulting during that timeframe and subsequent costs were modeled the Five-Year Fiscal Forecast and are sustainable under the most recent assumptions in that forecast to ensure consistency with Council’s adopted LRO and Fiscal Responsibility Philosophy (Attachment D). ALTERNATIVES Do not approve the resolution and direct staff to negotiate a different successor agreement and resolution. This alternative is not recommended as the agreement is consistent with the Council’s previous direction and the City’s employer-employee relations policies. 15 Packet Pg. 436 RESOLUTION NO. (2016 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING AND RATIFYING THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION FOR THE PERIOD OF JANUARY 1, 2016 THROUGH JUNE 30, 2018 WHEREAS, the San Luis Obispo Police Officers’ Association (POA) is committed to providing high quality service to the community and recognize the City’s commitment to fiscal responsibility; and WHEREAS, POA employees have demonstrated sensitivity to the fiscal challenges facing the City for several years by agreeing to no across the board salary increases (e.g. “cost of living” increases) since January 2009; and WHEREAS, the City of San Luis Obispo has experienced challenges recruiting and retaining Communications Technicians and Police Officers; and WHEREAS, the City Council is committed to providing competitive compensation to recruit and retain well qualified employees, as provided in the City’s adopted Compensation Philosophy; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows: SECTION 1. The Memorandum of Agreement between the City of San Luis Obispo and the POA, attached hereto as Exhibit “A” and incorporated herein by this reference, is hereby adopted and ratified. SECTION 2. The Director of Finance and Information Technology shall adjust the appropriate accounts to reflect the compensation changes in the 2015-2016, 2016-2017 Fiscal Year Budgets and Five-year Forecast and other budgetary documents as needed. SECTION 3. The City Clerk shall furnish a copy of this resolution and a copy of the executed Memorandum of Agreement approved by it to: Aaron Schafer, San Luis Obispo Police Officers’ Association, and Monica Irons, Director of Human Resources. Upon motion of ______________________, seconded by ________________________, and on the following roll call vote: AYES: NOES: ABSENT: 15.a Packet Pg. 437 Attachment: a - POA Resolution 2016 (1304 : POA MOA) The foregoing resolution was adopted this 19th day of April, 2016. ___________________________________ Mayor Jan Marx ATTEST: __________________________________ Lee Price, MMC Interim 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 ______________, _________. ______________________________ Lee Price, MMC Interim City Clerk 15.a Packet Pg. 438 Attachment: a - POA Resolution 2016 (1304 : POA MOA) MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE POLICE OFFICERS’ ASSOCIATION January 1, 20162012 – June 30, 2018December 31, 2015 Formatted: Font: Univers (W1), 10 pt, Condensed by 0.15 pt 15.b Packet Pg. 439 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) i TABLE OF CONTENTS Article No. Title Page No. 1 Preamble .......................................................................... 1 2 Recognition ....................................................................... 2 3 Check Off/Dues Deduction ............................................... 3 4 Employee Rights ............................................................... 4 5 Management Rights .......................................................... 5 6 Representative Role ......................................................... 6 7 Salary ................................................................................ 8 8 Master Police Officer Program ........................................ 13 9 Field Training Officer Incentive ....................................... 16 109 Bilingual Pay ................................................................... 15 110 Overtime - Sworn ............................................................ 16 121 Overtime – Non-Sworn ................................................... 19 132 Work Out-Of-Grade ........................................................ 22 143 Standby – Sworn and Non-Sworn .................................. 23 154 Education Incentive......................................................... 24 165 Uniform Allowance .......................................................... 26 176 Health Care Insurance .................................................... 27 187 Retirement ...................................................................... 31 198 Seniority .......................................................................... 32 2019 Holidays .......................................................................... 33 210 Vacation .......................................................................... 35 221 Sick Leave ...................................................................... 36 232 Family Leave .................................................................. 37 243 Bereavement Leave ........................................................ 39 254 Catastrophic Leave ......................................................... 40 265 Workers’ Compensation Leave ....................................... 42 276 Jury Duty and Military Leaves ......................................... 43 287 General Provisions.......................................................... 44 15.b Packet Pg. 440 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) ii Article No. Title Page No. 298 Residency Requirements ................................................ 45 3029 Promotional Policy .......................................................... 46 310 Performance Evaluations ................................................ 51 321 Grievance Procedure ...................................................... 53 332 Layoffs ............................................................................ 56 343 Work Actions ................................................................... 58 354 Communication Process ................................................. 59 365 Notice to the Association ................................................ 60 376 Equipment ....................................................................... 61 387 Temporary Modified Duty ............................................... 63 398 Work Schedules .............................................................. 64 4039 SWAT ............................................................................. 71 410 Traumatic Incidents......................................................... 72 421 No Discrimination ............................................................ 73 432 Staffing ............................................................................ 74 443 Full Agreement ............................................................... 75 454 Savings Clause ............................................................... 76 465 Renegotiations ................................................................ 77 476 Term of Agreement ......................................................... 78 Appendix “A” - Classification ........................................... 79 Appendix “B” – Grievance Forms ................................... 80 Appendix “C” – Salary Range Listing…………………... 15.b Packet Pg. 441 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 1 ARTICLE 1 PREAMBLE 1.1 This Agreement is effective the 1st day of January, 20162012, by and between the City of San Luis Obispo, hereinafter referred to as City, and the San Luis Obispo Police Officers' Association. The provisions of this Agreement shall apply to all unit members employed on January 1, 20162012, or thereafter. 1.2 The purpose of this Agreement is to promote the improvement of personnel management and employer/employee relations, provide an equitable and peaceful procedure for the resolution of differences and establish rates of pay and other terms and conditions of employment. 1.3 The City and the Police Officers' Association agree that all employees of the City share in the important responsibility of providing superior service to the public and that every job and position is considered to be important. 1.4 Nothing in this Agreement between the parties shall invalidate or be substituted for any provision in Resolution No. 6620 (1989 Series) unless so stipulated to by provision(s) contained herein and agreed to. 15.b Packet Pg. 442 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 2 ARTICLE 2 RECOGNITION The City hereby recognizes the San Luis Obispo Police Officers' Association as the bargaining representative for purposes of representing regular and probationary employees, occupying the position classifications set forth in Appendix A, in the Police Unit with respect to their compensation, hours and other terms and conditions of employment for the duration of the Agreement. 15.b Packet Pg. 443 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 3 ARTICLE 3 CHECK OFF/DUES DEDUCTION 3.1 The City shall deduct dues from City employees and remit said dues to the Association treasurer, which dues shall not include assessments. 3.2 Dues deduction, additions, and/or deletions shall be recorded by the City's Finance & Information Technology Director or designee and a notification of all dues transactions shall be sent monthly to the Association President. 3.3 The Association shall hold the City harmless from any and all claims, and will indemnify it against any unusual costs in implementing these provisions. 3.4 The Association shall refund to the City any amount paid to the Association in error, upon presentation of supporting evidence. 15.b Packet Pg. 444 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 4 ARTICLE 4 EMPLOYEE RIGHTS Employees of the City shall have the right to form, join and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations including, but not limited to, wages, hours and other terms and conditions of employment. Employees of the City also shall have the right to refuse to join or participate in the activities of employee organizations and shall have t he right to represent themselves individually in their employment relations with the City. No employee shall be interfered with, intimidated, restrained, coerced or discriminated against because of the exercise of these rights. 15.b Packet Pg. 445 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 5 ARTICLE 5 MANAGEMENT RIGHTS The rights of the City include, but are not limited to, the exclusive right to determine the mission of its constituent departments, commissions and boards; set standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficiency of government operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content of the job classifications; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology for performing its work. The City’s exercise of its rights under this section is subject to applicable State law. 15.b Packet Pg. 446 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 6 ARTICLE 6 REPRESENTATIVE ROLE As established by Article 43 44 of this Agreement, in the event any new practice or subject matter within the scope of representation arises during the term of this Agreement and an action concerning that practice or subject matter is proposed by the City, the Association will be afforded notice and shall have the right to meet and confer upon request. In this event, as well as for renegotiations under Article 45 46 of this Agreement, members of the Association may, by a reasonable method, select not more than five (5) employee members to meet and confer with the Municipal Employee Relations Officer and other management officials (after written certification of such selection is provided by the Association). Such meet and confer sessions under both Article 43 44 and Article 45 46 of this Agreement shall be considered hours of work for the designated Association representatives . The Association shall, whenever practicable, submit the name(s) of each employee representative to the Municipal Employee Relations Officer at least two working days in advance of such meetings. Provided further: (A) That no employee representative shall leave his or her duty or work station or assignment without specific approval of the Police Chief or other authorized City management official. That any such meeting is subject to scheduling by City management consistent with operating needs and work schedules. Nothing provided herein, however, shall limit or restrict City management from scheduling such meetings before or after regular duty or work hours. (B) Association members will donate a total of 250 hours per year (inclusive of any carryover time) of vacation time, holiday time, and compensatory time off to an Association "time bank" under the following guidelines: During the first full pay period of July each calendar year, the POA President shall determine the number of hours remaining in the Association time bank. That number shall be subtracted from the maximum number of time bank hours of 250 hours. The difference between the actual number of hours and the 250 hour 15.b Packet Pg. 447 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 7 maximum will be divided by the number of POA represented employees. Each represented employee shall then contribute an equal number of leave hours to be debited by the City to maintain the 250 hours time bank. Employees shall have the option to designate vacation, holiday or CTO leave time. 1. Only Association officers or bargaining team members may draw from the bank. 2. Requests to use time from the bank must be made reasonably in advance of the use. Approval is subject to the operational necessity of the department and normal time off approval processes. The City agrees to meet and confer over an increase in donations to the association leave bank if requested by the POA during the term of this MOA. 15.b Packet Pg. 448 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 8 ARTICLE 7 SALARY 7.1 Rules Governing Step Increases The following rules shall govern step increases for employees: A. The first step is the minimum rate and shall normally be the hiring rate for the class. In cases where it is difficult to secure qualified personnel, or if a per son of unusual qualifications is hired, the City Manager may authorize hiring at any step. B. The second step is an incentive adjustment to encourage an employee to improve his/her work. An employee may be advanced to the second step following twelve months satisfactory service upon recommendation by the Police Chief and the approval of the Human Resources Director. C. The third, fourth & fifth step represents the middle value of the salary range and is the rate at which a fully-qualified, experienced and ordinarily conscientious employee may expect to be paid after a reasonable period of satisfactory service. An employee may be advanced to the third and subsequent steps after completion of twelve months service at the prior step, provided the advancement is recommended by the Police Chief and approved by the Human Resources Director. D. The sixth step is to be awarded only in case of work which is well above average for the class. An employee may be advanced to the sixth step after completion of one year of service at the fifth step, provided the advancement is recommended by the Police Chief and approved by the Human Resources Director. E The seventh and eighth steps are intended as a reward for performance sustained above satisfactory. An employee may be advanced to the seventh or eighth step after completion of one year at the prior step, provided the advancement is recommended by the Police Chief and approved by the Human Resources Director. 15.b Packet Pg. 449 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 9 F. Progression to Master Police Officer, step 9, will occur when the employee has satisfied the requirements in Article 8.4. G. The Police Chief shall be authorized to reevaluate employees who reach top step in their pay range. An employee who is not performing up to standard for the top step shall be notified in writing that the Police Chief intends to reduce him/her one step unless job performance improves significantly within a 60-day period. Unless the employee's job performance improves to an acceptable level by the end of 60 days, the pay reduction shall then become effective. The top step may be reinstated at any time upon recommendation of the Police Chief. If the Police Chief deems it necessary to again remove the top step during the same fiscal year, he/she may make the change at any time with three business days' advanced written notice. H. Effective January 2013 In order to implement immediate prospective cost savings to the City for the hiring of new employees, two additional full salary steps will be added at the bottom of the salary tables for all classifications. The addition of two new salary steps will yield a 10.52% reduction in salary with a corresponding reduction in salary related employee costs for all employees hired after this agreement is ratified and adopted by City Council. The salary range for Police Officer consists of nine steps (1 through 9). Steps 1 through 9 equal 95% of the next highest step, computed to the nearest $1.00. The salary range for Communications Technician, Evidence Technician, Field Services Technician, Property and Evidence Clerk, Police Records Clerk and Police Cadet consists of seven steps (1 through 7). Steps 1 through 7 equal 95% of the next highest step, computed to the nearest $1.00 Employees hired before January 1, 2013 will be assigned to the corresponding step in the new pay scale that is two steps higher than in the pre-January 2013 salary schedule. No increase or decrease in compensation will result from this 15.b Packet Pg. 450 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 10 transition to the new salary schedule. For example, a step 7 police officer will now reflect step 9 and a step 5 Communications Technician will reflect step 7. Each across-the-board % salary increase shall raise each step of the range by the %. Step 7The top step of each successive salary range will be 2.63% above step 7the top step of the next lower range. After all steps of each salary range have been established, each shall be rounded off to the nearest $1.00. Employees who are eligible for advancement to top step must receive a "Meets Performance Standards" or better on the overall rating on their most recent Performance Appraisal prior to or coincident with their being eligible for advancement by time in grade. Employees who are eligible for advancement to step 6 or 7the top two steps must receive a "Meets Performance Standards" or better on the overall rating on their most recent Performance Appraisal prior to or coincident with their being eligible for advancement by time in grade. 7.2 Salary Increases for Term of Agreement In response to the City’s request to contain labor costs, the Association agrees to effectively freeze any COLA increase during the term of this agreement; there shall be no cost of living (COLA) increases for the term of this agreement. This agreement memorializes two (2) previous years of a 0% COLA for calendar years 2010 and 2011 and four (4.0) additional years of a 0% COLA during the term of this agreement. Salary increases will be effective on the first day of the first full pay period following the dates listed below:  January 1, 20162012 20% Sworn and Non-Sworn Classifications (Police Officer)  January 1, 2012 0% Non-Sworn Classifications  January 1, 20172013 20% Sworn and Non-Sworn Classifications (Police Officer)  January 1, 2013 0% Non-Sworn Classifications 15.b Packet Pg. 451 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 11  January 1, 20182014 20% Sworn and Non-Sworn Classifications (Police Officer)  January 1, 2014 0% Non-Sworn Classifications  January 1, 2015 0% Sworn Classifications (Police Officer)  January 1, 2015 0% Non-Sworn Classifications Recruitment and Retention Market AdjustmentSalary Concession for Term of Agreement: Due to the critical nature of the work performed and difficulty in attracting and retaining qualified employees in these classifications, recruitment and retention market increases will be effective on the first day of the first full pay period following the dates listed below:  July 2016January 2013 1.02.0% Salary Reduction Sworn and Non-Sworn Classifications  July 20172014 1.02.0% Salary Reduction Sworn and Non-Sworn Classifications The salary ranges for the term of this agreement are listed in Appendix C. January 2012 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Salary Position Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/ Range Title Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly 700 Records Clerk I 3,907 4,113 4,329 4,557 4,797 1,803 1,898 1,998 2,103 2,214 704 Records Clerk II 4,331 4,559 4,799 5,051 5,317 1,999 2,104 2,215 2,331 2,454 705 Police Cadet 4,816 5,070 5,336 5,617 5,913 2,223 2,340 2,463 2,593 2,729 707 Field Service 5,084 5,352 5,634 5,930 6,242 Technician 2,347 2,470 2,600 2,737 2,881 707 Property &5,084 5,352 5,634 5,930 6,242 Evidence Clk 2,347 2,470 2,600 2,737 2,881 708 Communications 5,211 5,486 5,774 6,078 6,398 Technician I 2,405 2,532 2,665 2,805 2,953 720 Evidence 6,957 7,323 7,708 8,114 8,541 Technician 3,211 3,380 3,558 3,745 3,942 750 Police Officer 6,285 6,616 6,964 7,330 7,716 8,122 8,550 2,901 3,053 3,214 3,383 3,561 3,749 3,946 15.b Packet Pg. 452 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 12 January 2013 2% Decrease all classifications Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Salary Position Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/ Range Title Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly 700 Records Clerk I 3,456 3,638 3,830 4,031 4,243 4,467 4,702 1,595 1,679 1,767 1,861 1,958 2,062 2,170 704 Records Clerk II 3,830 4,032 4,244 4,468 4,703 4,950 5,211 1,768 1,861 1,959 2,062 2,171 2,285 2,405 705 Police Cadet 4,259 4,483 4,719 4,967 5,229 5,504 5,794 1,966 2,069 2,178 2,293 2,413 2,540 2,674 707 Field Service 4,496 4,733 4,982 5,244 5,520 5,811 6,117 Technician 2,075 2,184 2,299 2,420 2,548 2,682 2,823 707 Property &4,496 4,733 4,982 5,244 5,520 5,811 6,117 Evidence Clk 2,075 2,184 2,299 2,420 2,548 2,682 2,823 708 Communications 4,609 4,852 5,107 5,376 5,659 5,957 6,270 Technician I 2,127 2,239 2,357 2,481 2,612 2,749 2,894 720 Evidence 6,153 6,476 6,817 7,176 7,554 7,951 8,370 Technician 2,840 2,989 3,146 3,312 3,486 3,670 3,863 750 Police Officer 5,558 5,851 6,159 6,483 6,824 7,184 7,562 7,960 8,379 2,565 2,700 2,843 2,992 3,150 3,315 3,490 3,674 3,867 July 2014 2% Decrease all classifications Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Salary Position Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/Monthly/ Range Title Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly Bi-Weekly 700 Records Clerk I 3,388 3,566 3,754 3,951 4,159 4,378 4,609 1,564 1,646 1,732 1,824 1,920 2,021 2,127 704 Records Clerk II 3,754 3,952 4,160 4,378 4,609 4,851 5,107 1,733 1,824 1,920 2,021 2,127 2,239 2,357 705 Police Cadet 4,174 4,394 4,625 4,869 5,125 5,395 5,679 1,927 2,028 2,135 2,247 2,365 2,490 2,621 707 Field Service 4,407 4,639 4,883 5,140 5,411 5,695 5,995 Technician 2,034 2,141 2,254 2,372 2,497 2,629 2,767 707 Property &4,407 4,639 4,883 5,140 5,411 5,695 5,995 Evidence Clk 2,034 2,141 2,254 2,372 2,497 2,629 2,767 708 Communications 4,517 4,755 5,005 5,268 5,546 5,837 6,145 Technician I 2,085 2,194 2,310 2,432 2,559 2,694 2,836 720 Evidence 6,030 6,347 6,681 7,033 7,403 7,793 8,203 Technician 2,783 2,930 3,084 3,246 3,417 3,597 3,786 750 Police Officer 5,448 5,735 6,036 6,354 6,688 7,040 7,411 7,801 8,212 2,514 2,647 2,786 2,933 3,087 3,249 3,420 3,601 3,790 15.b Packet Pg. 453 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 13 ARTICLE 8 MASTER POLICE OFFICER PROGRAM 8.1 The Master Police Officer Program shall be as follows: The specialty assignments included in this program are: Field Training Officer 3 years S.E.T.5 43 years4 Traffic Officer5 3 years3 Investigator5 4 years Narcotics Task Force Investigator 4 years (effective January 1, 2006) SRO 43 years4 Crime Scene Investigator 3 years Defensive Tactics Instructor1* 3 years (effective January 1, 2007) Hostage Negotiator1* 3 years (effective January 1, 2007) Range Master 4 years2** Downtown Officer 3 years2** Swat Team Operator1* 3 years Bomb Technician1* 3 years CAT (Community Action Team) 4 years Traffic Call Out1 3 years 1* Non-mandatory Rotational position. 2** Early opt out allowed after two years with full credit towards MPO status. 3 If grant funding is received for DUI enforcement then the assignment is two years and is counted toward MPO credit. 4 Early opt out allowed after three years with full credit towards MPO status. 5 At the discretion of the Police Chief, Administrative Captain, Investigations Lieutenant, SET Sergeant, and following input from a member of the POA board of directors, one position in SET, Investigator and Traffic may be extended two years. This extension can be reoccurring 15.b Packet Pg. 454 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 14 based on job performance and management recommendation. An officer can chose to decline the extension at the end of the completed rotation. 8.2 To be eligible for compensation under this program, an employee must receive and maintain at least a "Meets Performance Standards" rating on their evaluation. 8.3 Compensation under this program shall in no case exceed one step on the salary range. 8.4 Master Police Officer Eligibility requirements for the position of Master Police Officer are as follows effective January 1, 2006: 1. One full year at Step 8 of the salary range. 2. Must have obtained an advanced POST Certificate 3. Must have successfully completed two specialty assignments and two years in a third specialty assignment. Assignments may be completed in any order. Lateral Officers having completed two comparable specialty assignments at their prior agency shall receive credit for a third sp ecialty assignment. The comparability of specialty assignments shall be determined by the Police Chief in his/her discretion. The Chief may require an employee seeking credit for prior agency specialty assignment credit to submit satisfactory proof of su ccessful performance in such assignments. 4. Reassignment, with a break in service, to the same assignment will be credited as a third assignment. To be credited for the purposes of compensation, an officer shall be required to complete the terms of any specialty assignment unless early departure for good cause is/was authorized by the Chief of Police. Departure for any other reason will forfeit MPO compensation at the time of departure. 5. The Department may, at any time, temporarily remove an employee from a specialty assignment to meet operational needs. If the cumulative total time of removal from the assignment prior to the employee’s scheduled rotation date exceeds 90 days, the employee shall have the option of extending the rotation date 15.b Packet Pg. 455 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 15 by the total time of removal or accepting that amount of time as credit towards completion of the specialty assignment. 6. Qualified Master Police Officers will be permitted to wear a two-stripe insignia (otherwise recognized as Corporal stripes) recognizing their status as determined by Department uniform policy. 7. Compensation: Police Officer Step 9. 8. The employee is responsible for requesting advancement to Master Police Officer. The Department will, once annually, remind employees to make such requests. Retroactive payments will not be made if the employee fails to make a timely request. 9. Once an officer achieves status of MPO s/he will be assigned to attend the Field Training Officer Class. 15.b Packet Pg. 456 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 16 ARTICLE 910 FIELD TRAINING OFFICER INCENTIVE 9.110.1 When assigned a trainee by the Police Chief or designee, field training officers will receive $50 per day. 15.b Packet Pg. 457 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 17 ARTICLE 109 BILINGUAL PAY 9.110.1 Employees certified as bilingual in Spanish through a testing process administered by the City Human Resources Department shall receive a bilingual payment of $50 per pay period. Additional languages may be approved by the City based upon demonstrated need. Regardless of certification, all employees shall use any language skills they possess to the best of their ability. Effective the first payroll in the mon th following adoption of this agreement by City Council, bilingual payment shall be $100 per pay period. . 15.b Packet Pg. 458 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 18 ARTICLE 110 OVERTIME - SWORN 110.1.A DEFINITION Overtime is defined as all hours worked in excess of 160 hours worked in the employee's 28 day work period. Vacation, holidays, sick leave, IOD, and compensatory time off shall be considered hours worked when computing overtime. 110.1.B In accordance with section 207(k) of the Fair Labor Standards Act, the City has declared a twenty-eight day work period for the purpose of calculating FLSA overtime. The FLSA work period is deemed to commence at 12:01 AM on the first day of the 28 day period and end at 11:59 PM on the 28th day of the the 28 day work period and the FLSA overtime threshold for the work period is 171 hours. This declaration is separate and apart from the City’s contractual overtime obligations set forth in section 10.1.A above. 110.2 ELIGIBILITY All sworn employees covered by this Agreement shall be eligible for overtime pay. 110.3 COMPENSATION A. Overtime hours shall, at the employee's option, be compensated in cash at time and one half the employee's regular rate of pay or in time off compensated at time and one half. However, no employee shall accumulate and have current credit for more than 100 hours of compensatory time off. B. The Association and the City agree that CTO usage is subject to normal time off approval processes and may be denied if it would result in the need for overtime coverage (except when scheduled in conjunction with approved vacation during the annual vacation sign-ups). 110.4 GUARANTEED MINIMUMS FOR RETURNING TO WORK 15.b Packet Pg. 459 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 19 Whenever an employee is required by the department to return to work outside of the employee's normal work hours, if a minimum applies as found in this article, then the employee has the choice of taking the minimum or taking the pay for the work actually performed. 110.5 CALL BACK Employees called back to work at hours not contiguous to their normally scheduled shift shall be guaranteed a three-hour minimum payment at time and one half. Unanticipated emergency call-backs (criminal investigations, emergency evacuations, natural disasters, civil unrest, SWAT, etc.) will include a total 30 minutes for travel time. 110.6 COURT TIME A. Effective the first full pay period upon ratification, employees reporting for court duty shall be guaranteed three hours minimum payment at time and one-half. B. Employees required to work through the lunch break while on court duty shall be credited with time worked. Duty free lunch periods shall not be compensable, to a maximum of thirty (30) minutes. C. Two or more court cases occurring within the minimum time period shall be subject to a single minimum payment. D. If a scheduled court appearance is canceled on the day the employee is to appear, s/he shall be eligible for the minimum payment in this Section. 110.7 ROLL CALL BRIEFING Employees who are required to attend roll call briefing and do shall be paid for such attendance. Payment shall be considered overtime and paid as such if the hours fall within the definition of overtime. 110.8 TRAINING A. Employees called back for training sessions, authorized by the Police Chief or designee shall be guaranteed three-hour minimum payment at time and one half. 15.b Packet Pg. 460 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 20 B. The City shall provide each employee with paid independent living hotel/motel accommodation when assigned to a POST reimbursable training course or City required training course requiring overnight stay. Daily meal reimbursement provided shall either be a flat $36 per day or the actual amount spent as evidenced by receipts subject to the following maximum amounts (unless increased by City Policy).  Breakfast - $10.00 (regardless of whether or not a continental breakfast is provided)  Lunch - $15.00  Commuter Lunch - $8.00  Dinner - $25.00  Mileage at the prescribed IRS mileage reimbursement rate. 110.9 RANGE QUALIFICATION A. Employees required to qualify with department approved firearms shall be guaranteed three hours at time and one-half when participating in range qualification training when off duty. B. Each employee who shoots for qualification shall be provided 100 rounds of practice handgun ammunition each month upon request. Employees may only receive the current month’s handgun allocation. Employees must be present to receive and sign for allotted ammunition. Employees that have been placed on administrative leave, and/or 4850 that extends beyond 90 days shall not receive an allotment of ammunition until return from such leave. Allotments shall not accrue during the pendency of such leave and shall not be owed to an employee for the pendency of such leave.. An employee on modified duty or 4850 less than 90 days may receive allotment with a note from a physician. 110.10 OVERTIME ASSIGNMENT A. Prior to each shift rotation the Department creates an electronic calendar for officers to indicate their interest in overtime., will post an overtime interest list. 15.b Packet Pg. 461 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 21 Planned overtime will be called from this list in order of seniority. Employees may add and/or delete their names from this list at any time, and are not required to take overtime if they are unavailable. B. An officer may decline a non-emergency overtime shift if s/he has worked an overtime shift of at least eight hours in the last fourteen days. If no volunteers are available from the list, the Watch Commander may then move up to the next least senior officer on that shift for mandatory overtime. C. If no officer is signed up on the overtime list, management may send a notification to all qualified personnel regarding needed overtime which will be assigned to the first officer responding to the notification. 15.b Packet Pg. 462 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 22 ARTICLE 121 OVERTIME - NON-SWORN 121.1 DEFINITION Overtime is defined as all hours worked in excess of 80 hours worked in a pay period. Vacation, holidays, sick leave, IOD and compensatory time off shall be considered hours worked when computing overtime. 121.2 ELIGIBILITY All non-sworn employees covered by this Agreement shall be eligible for overtime pay. 121.3 COMPENSATION Overtime shall, at the employee’s option, be compensated in cash at time and one half the employee's regular rate of pay or in time off compensated at time and one half. Maximum accrual of compensatory time shall be 240 hours for all non-sworn classifications. 121.4 GUARANTEED MINIMUMS FOR RETURNING TO WORK Whenever an employee is required by the department to return to work outside of the employee's normal work hours, if a minimum applies as found in this article, then the employee has the choice of taking the minimum or taking the pay for the work actually performed. 121.5 CALL BACK Employees called back to work at hours not contiguous to their normally scheduled shift shall be guaranteed a three-hour minimum payment at time and one half. Unanticipated emergency call-backs (criminal investigations, emergency evacuations, natural disasters, civil unrest, SWAT, etc.) will include a total 30 minutes for travel time. 15.b Packet Pg. 463 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 23 121.6 COURT TIME A. Employees reporting for court duty shall be guaranteed three hours minimum payment at time and one-half. B. Employees required to work through the lunch break while on court duty shall be credited with time worked. Duty free lunch periods shall not be compensable, to a maximum of thirty (30) minutes. C. Two or more court cases occurring within the minimum time period shall be subject to a single minimum payment. D. If a scheduled court appearance is canceled on the day the employee is to appear, s/he shall be eligible for the minimum payment in this Section. 121.7 ROLL CALL BRIEFING Employees who are required to attend roll call briefing and do, shall be paid for such attendance. Payment shall be considered overtime and paid as such if the hours fall within the definition of overtime. 121.8 TRAINING A. Employees called back for training sessions, authorized by the Police Chief or designee shall be guaranteed three-hour minimum payment at time and one-half. B. The City shall provide each employee with paid independent living hotel/motel accommodation when assigned to a POST reimbursable training course or City required training course requiring overnight stay. Daily meal reimbursement provided shall either be a flat $36 per day or the actual amount spent as evidenced by receipts subject to the following maximum amounts (unless increased by City Policy).  Breakfast - $10.00 (regardless of whether or not a continental breakfast is provided)  Lunch - $15.00  Commuter Lunch - $8.00  Dinner - $25.00 15.b Packet Pg. 464 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 24  Mileage at the prescribed IRS mileage reimbursement rate. 121.9 OVERTIME ASSIGNMENT A. The Department, prior to each shift rotation, will post an overtime interest list. Planned overtime will be called from this last in order of seniority. Employees may add and/or delete their names from this list at any time. 11.10 RANGE QUALIFICATION A. Employees required to qualify with department approved firearms, shall be guaranteed three hours at time and one-half when participating in range qualification training when off duty. B. Each employee who shoots for qualification shall be provided 100 rounds of practice handgun ammunition each month upon request. Employees may only receive the current month’s handgun allocation. 15.b Packet Pg. 465 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 25 ARTICLE 132 WORK OUT-OF-GRADE Employees temporarily assigned to work in a higher classification shall receive one step (5.26%) additional pay but in no case more than the top step for the higher classification under the following conditions: A. The assignment exceeds ten consecutive workdays, or eighty consecutive work hours, in which case the step increase becomes effective on the first workday. B. The person being temporarily replaced is on extended sick or disability leave or the position is vacant and an examination is pending. 15.b Packet Pg. 466 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 26 ARTICLE 143 STANDBY - SWORN AND NON-SWORN 143.1 DEFINITION Standby is that circumstance which requires an employee assigned by the department to: 1) be ready to respond immediately to a call for service; 2) be readily available at all hours by telephone or other agreed upon communication equipment; and 3) refrain from activities which might impair his/her assigned duties upon call. The parties agree that employees on standby, as defined above, are "waiting to be engaged." The parties further agree there is no intent to waive any individual rights under FLSA. When an employee is engaged on the phone in excess of ten minutes to discuss department business such time will be considered time worked. 143.2 COMPENSATION Hourly Standby A. Personnel placed on standby shall be compensated one-hour's pay for each five hours standby. B. Such employees shall be paid a minimum of three hours straight time when on standby. Each calendar day starts a new standby period. Investigator/Bomb Technician Weekly Standby A. Investigators/Bomb Technicians placed on standby shall be compensated $30 per day Monday through Friday, and $35 per day for other days of standby and holidays. B. Standby shall be rotated among the assigned investigators. Normally, the standby assignment shall be for a period of one week. C. Effective the first payroll in the month following adoption of this agreement by City Council, Investigators/Bomb Technicians placed on standby shall be 15.b Packet Pg. 467 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 27 compensated $45 per day Monday through Friday, and $65 per day for weekends and holidays. 15.b Packet Pg. 468 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 28 ARTICLE 154 EDUCATION INCENTIVE The educational incentive pay plan shall continue as described below for sworn and non-sworn personnel for the term of this agreement. A. BASIC BENEFITS. Education incentive pay shall not begin until one year after employment with the City of San Luis Obispo, but credit will be given for approved education obtained prior to that time. The basic benefit will consist of an adjustment equal to one-half step above the base salary for possession of an Intermediate POST certificate, A.A. or equivalent degree from an accredited community or junior college, or 60 or more semester units, or a City-approved equivalent; an adjustment equal to one full step for an Advanced POST certificate, B.A. or equivalent degree from an accredited college or university. B. JOB RELATED FIELDS. Degrees must be either in directly job related fields or include at least 30 semester, or City-approved equivalent, units of job related coursework in the case of an A.A. degree and at least 60 semester, or City-approved equivalent, units in the case of a B.A. Should an employee qualify for the one-half step basic benefit by having completed 60 or more semester units or City-approved equivalent, at least 30 of those units must be in job related coursework. All qualifying coursework must be graded at "C" or Pass or better. It is understood that general education courses required for a degree are compensable under this section. C. APPLICATION AND APPROVAL. Application for the incentive pay shall be made by the employee to the Chief of Police at least 30 days before the date the payment of the incentive pay is to be effective. Approval of the Chief of Po lice and the Director of Human Resources shall be required. D. UNSATISFACTORY PERFORMANCE. To be eligible for compensation under this program, an employee must receive and maintain at least a “Meets Performance 15.b Packet Pg. 469 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 29 Standards” rating on their annual evaluation. The Chief of Police, with the concurrence of the City Manager, may suspend payment of the incentive pay or the top stepStep 97 of the salary range, but not both, until such time as the employee's performance comes up to the standard level, in the opinion of the Chief of Police and in concurrence of the City Manager. E. NON-APPLICABILITY. Educational incentives shall generally not be paid for education on City time. However, if the City sends an employee for training on City time and college-level credits are earned during that training, those credits shall count toward education incentive. The education incentive will be removed if the employee is promoted to a position that does not entitle employees to such incentives. F. ADDITIONAL PROVISIONS. 1. The basic benefit for non-sworn employees hired prior to January 1, 2008, shall be a five percent step increase for a period of one fiscal year if during the previous fiscal year the employee has successfully completed —i.e., grades of "C" or better in all courses — a minimum of nine semester units of college level classroom work, or City-approved equivalent, approved by the Chief of Police, provided that this benefit shall be payable only for classroom work done after completion of the probationary period. 2. The maximum benefit under this article is the equivalent to the one-step increase for possession of one B.A. or equivalent degree (5.26%). 3. Sworn and non-sworn employees are eligible to participate in the Tuition Reimbursement program as set forth in City Policy. 15.b Packet Pg. 470 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 30 ARTICLE 165 UNIFORM ALLOWANCE 165.1 Each employee required to wear a uniform is expected to purchase and maintain in good repair all required uniform pieces. 165.2 Effective June 2016, sworn employees shall receive $1,000 per year uniform allowance, with $500 issued to the employee with the first payroll period in June and $500 issued to the employee with the first payroll period in December. Effective June 2016, Nnon-sworn employees shall receive $500 per year uniform allowance, with $250 issued to the employee with the first payroll period in June and $250 issued to the employee with the first payroll period in December. The uniform allowance shall be $1,000 per year, with $500 issued to the employee with the first payroll period in June and $500 issued to the employee with the first payroll period in December. Effective January 2013 following the uniform allowance payment that will occur the first payroll period in December 2012, the $1,000 per unit member uniform allowance provision in its entirety shall be eliminated. New employees hired prior to December 1, 2012 will receive a prorated amount. 165.3 Effective January 1, 2013, all represented employees shall no longer be eligible for uniform allowance without regard to duty status interruption if in paid status, including 4850 Pay. For “Classic Members” as defined by CalPERS, uniform allowance shall be reported to CalPERS as special compensation. Uniform allowance will not be pro-rated upon separation from employment. 15.b Packet Pg. 471 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 31 ARTICLE 176 HEALTH CARE INSURANCE 176.1 CONTRIBUTION The City shall contribute the monthly amounts as set forth below for Cafeteria Plan benefits for each regular, full time employee covered by this agreement. Less than full- time employees shall receive a prorated share of the City's contribution. Employee Only $559.00533.00 Employees Plus One $1,015.00968.00 Family $1,339.001,277.00 The Cafeteria Plan amount is inclusive of mandatory dental, vision, and life coverage. Effective the first payroll in the month following adoption of this agreement by City Council, the City will contribute the monthly amounts as set forth below for Cafeteria Plan benefits: Opt Out $ 559.00 Employee Only $ 587.00 Employee Plus One $1,066.00 Family $1,406.00 Effective December 2016 2014 (for the January 20172015 premium) and December 2017 (for the January 2018 premium) for employees participating in the PERS Health Benefit Program, the City’s total Cafeteria Plan contribution shall be increasedmodified by an amount equal to one-half of the average percentage change for family coverage in the PERS health plans available in San Luis Obispo County. For example: if three plans were available and the year-to-year changes were +10%, +15%, and +20% respectively, the City’s contribution would be increased by 7.5% (10% + 15% + 20% ÷ 3 = 15% x 1/2). 15.b Packet Pg. 472 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 32 Employees shall be eligible for the City contributions set forth above based on the number of dependents they enroll in the PERS Health Benefit Program. Employees opting out of health coverage as provided for below, shall receive a contribution as described in Section 16.2.B below. 176.2 INSURANCE COVERAGE A. PERS Health Benefit Program The City has elected to participate in the PERS Health Benefit Program (Public Employees’ Medical and Hospital Care Act [PEMHCA]) with the "unequal contribution option" at the PERS minimum contribution rates, currently $125.00112.00 per month for active employees and $106.40 for retirees as of January 1, 2012. The City's contribution toward retirees shall be increased by 5% per year of the City's contribution for the active employees multiplied by the number of years the City has been in the PEMHCA program until such time as the contributions for employees and retirees are equal. The City's contribution will come out of that amount the City currently contributes to employees as part of the Cafeteria Plan. The cost of the City's participation in PERS will not require the City to expend additional funds toward health insurance beyond what is already provided. In summary, this cost and any increases will be borne by the employees. B. Health Insurance Coverage Optional Participation Effective December 2012 (for the January 2013 premium) eEmployees with proof of medical insurance elsewhere are not required to participate in the PERS Health Benefit Program and may receive the unused portion of the City's Cafeteria Plan employee only opt out contribution per month (after dental, vision, and life insurance is deducted) in cash in accordance with the City's Cafeteria Plan. C. Dental and Vision Insurance/Dependent Coverage Employees will be required to participate in the City's dental and vision plans at the employee only rate. Should they elect to cover dependents in th e City's dental 15.b Packet Pg. 473 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 33 and vision plans, they may do so, even if they do not have dependent coverage under PERS. D. Long Term Disability Insurance (LTD) Sworn employees are covered for Long Term Disability Insurance through the Association and are responsible for premium payments. Non-sworn employees continue to be covered under the City’s Long Term Disability Insurance Program. E. Life Insurance Employees shall pay for life insurance coverage of Thirty-five Thousand Dollars ($35,000) through the cafeteria plan. 176.3 REPRESENTATION ON A MEDICAL PLAN REVIEW COMMITTEE The Association shall appoint one voting representative to serve on a Medical Plan Review Committee. In addition, the Association may appoint one non-voting representative to provide a wider range of viewpoint for discussion. A. Duties and Obligations of the Medical Plan Review Committee The duties and obligations of the Medical Plan Review Committee shall be to: 1. Review and suggest changes for the City's flexible benefits plan and the insurance plan offered under the MOA. 2. Submit to the City and its employee associations recommendations on proposed changes for the City's flexible benefits plan and the insurance plans offered under the MOA. 3. Disseminate information and educate employees about the City's flexible benefits plan and the insurance plans offered under the MOA. 4. Participate in other related assignments requested by the City and its employee associations. 15.b Packet Pg. 474 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 34 B. Miscellaneous 1. The actions of the Medical Plan Review Committee shall not preclude the Association and the City from meeting and conferring. 2. No recommendation of the Medical Plan Review Committee on matters within the scope of bargaining shall take effect before completion of meet and confer requirements between the City and the Association, including Resolution 6620. 3. If changes to the City's flexible benefits plan are subject to meet and confer requirements, the City and the Association agree to meet and confer in good faith. 4. In performing its duties, the Medical Plan Review Committee may consult independent outside experts. The City shall pay any fees incurred for this consultation, provided that the City has approved the consultation and fees in advance. 176.4 HEALTH INSURANCE FOR UNIT MEMBER SURVIVORS The City shall maintain and pay for the existing level of health, dental and vision benefits for one (1) year for the surviving family of an active employee who dies as a result of a job-related illness or injury. 176.5 FITNESS PROGRAM To the extent the Association wishes to discuss implementation of a Fitness Program with the City during the term of this agreement, the Association will provide the City with a written proposal setting forth the specifics of the Fitness Program. Upon receipt of the Association’s request the City will meet with the Association representatives to discuss the terms and conditions of the proposed Fitness Program. 15.b Packet Pg. 475 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 35 ARTICLE 187 RETIREMENT 187.1 A. “Classic Members First Tier” employees hired before December 6, 2012 The City agrees to provide the Public Employees' Retirement System's (PERS) 3% at age 50 plan to all sworn personnel and 2.7% at age 55 for all non-sworn personnel hired before December 6, 2012. The 3% at age 50 plan includes the following amendments, namely, Post Retirement Survivor Allowance, the 4th level 1959 Survivor's Benefit, military service credit, one-year final compensation, conversion of unused sick leave credit to additional retirement credit, and Pre-Retirement Optional Settlement 2 Death Benefit. The 2.7% at age 55 plan has the following amendments, the 4th level 1959 Survivor's Benefit, one year final compensation, military service credit, conversion of unused sick leave credit to additional retirement credit, and Pre-Retirement Optional Settlement 2 Death Benefit. B. “Classic Members Second Tier” employees hired on or after December 6, 2012 Effective December 6, 2012, or as soon as administratively possible subject to CalPERS regulations and State Law, the City agrees to provide the Public Employee’s Retirement System’s, 2% at age @ 50 Full Formula for Local Safety Members using the average of the three highest years as final compensation and 2% at age 60 for all non-sworn personnel using the average of the three highest years as final compensation for all new hired sworn personnel. The 2% at age@ 50 plan includes the following amendments, namely, Post Retirement Survivor Allowance, the 4th level 1959 Survivors’ Benefit, military service credit, conversion of unused sick leave credit to additional retirement credit, and Pre-Retirement Optional Settlement 2 Death Benefit. C. “New Members Third Tier” 15.b Packet Pg. 476 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 36 For all employees who PERS determines are “new members” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA), the City will provide the PERS 2.7% at age 57 (PERS Safety Option Plan Two) retirement plan for sworn personnel and 2% at age 62 retirement plan for non-sworn personnel, using the highest three year average as final compensation. Effective on their date of hire, new members will pay 50% of the total normal cost of the member contribution, as determined by PERS. The employee pays to PERS their contribution as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre-tax basis. Effective December 6, 2012, or as soon as administratively possible subject to CalPERS regulations and State Law, the City agrees to provide the Public Employees’ Retirement System’s, 2.0% @ 60 Full Formula for Local Miscellaneous Members with the average of three (3) years compensation for all new hired non-sworn employees’ including the amendments permitting conversion of unused sick leave to additional retirement credit, the 1959 survivor’s benefit (4th level), the Military Service Credit option, and the Pre- Retirement Option 2 Death Benefit. 187.2 A. Effective January 1, 2000, the City discontinued paying the “classic member” sworn employees’ share of the PERS Contribution (9%) and the “classic member” non- sworn employees’ share of the PERS Contribution (8%). The 9% and the 8% were added to the employees’ base salaries and reported as compensation to PERS. The “classic member” employee pays to PERS their contribution; as allowed under Internal Revenue Code Section 414 (h) (2) the contribution is made on a pre-tax basis. B. Effective the first full pay period January 2014, and in accordance to the provisions of AB 340 § 7522.30 and §20516, all “classic member” sworn employees shall contribute 3.0% of salary directed to the employers’ normal pension cost in addition to the employee paying the “classic member” employees’ 9% of salary as described in paragraph A above; as allowed under the Internal Revenue Code § 414 (h) (2) the 15.b Packet Pg. 477 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 37 contribution is made on a pre-tax basis. All “classic member” sworn employees total pension contributions shall be capped at 12.0% of salary. C. Effective the first full pay period January 2014, and in accordance to the provisions of AB 340 § 7522.30 and § 20516, all “classic member” non-sworn employees shall contribute 3.0% of salary directed to the employers’ normal pension cost in addition to the employee paying the employees’ 8% of salary as described in paragraph A above; as allowed under the Internal Revenue Code § 414 (h) (2) the contribution is made on a pre- tax basis. All “classic member” non-sworn employees total pension contributions shall be capped at 11.0% of salary. 15.b Packet Pg. 478 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 38 ARTICLE 198 SENIORITY 198.1 Overall seniority in a specific job classification (i.e., Police Officer, Communications Technician, Field Service Technician, Evidence Technician, Police Records Clerk, etc.) will prevail as the standard. All days off, vacation, holidays, and shift selections will be determined by overall seniority in a specific job classification, in compliance with department policy. The department will continue to designate the shifts to be available; including the days off and shifts starting and stopping times. Employees will choose from those shifts designated by the department as available. 198.2 Seniority as it applies to special assignments for the officers will also fall under this standard regardless of seniority in the special assignment. This shall include all current incumbents in specialty assignments as outlined in Article 8. 15.b Packet Pg. 479 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 39 ARTICLE 2019 HOLIDAYS 2019.1 For all employees, holiday leave shall be accrued as earned each payroll period at a rate of eight hours per month. The following thirteen days of each year are designated holidays for non-shift employees as defined in Appendix A: January 1 – New Year's Day Third Monday in January – Martin Luther King's Birthday Third Monday in February – Presidents’ Day Last Monday in May – Memorial Day July 4 – Independence Day First Monday in September – Labor Day September 9 – California Admission Day Second Monday in October – Columbus Day November 11– Veteran's Day Fourth Thursday in November – Thanksgiving Day Friday after Thanksgiving Day December 25 – Christmas One-half day before Christmas One-half day before New Year's 2019.2 When a holiday falls on a Saturday, the preceding Friday shall be observed. W hen a holiday falls on a Sunday, the following Monday shall be observed. The Police Chief or designee may make the final determination as to whether the Holiday must be worked. 2019.3Effective May 2016 the City will transition Nnon-shift employees (As defined in Appendix A) shall be givento receive the equivalent of 104 hours of holiday leave effectivein the first pay period in January of each year. Non-shift employees’ remaining holiday leave, not to exceed 52 hours, as of the last pay period in December will be paid to the employee at the straight time rate. Holiday leave hours shall be pro -rated when an 15.b Packet Pg. 480 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 40 employee is appointed or leaves employment during the calendar year. The employee’s final check will be adjusted to reflect the pro-rated hours. Except with the prior approval of the Chief, non-shift personnel shall take the holidays as scheduled above. 2019.4 Each Shift employee shall earn 4.33 hours of holiday leave semi-monthly, in lieu of fixed holidays. Such employees shall receive payment at straight time hourly rate for a portion of their earned holiday leave (2.0 hours) each bi-weekly payroll period. 2019.5 The remainder of the Shift employee’s annual holiday leave (52 hours) shall be advanced to the employee effective the first payroll period in January of each year. Such holiday leave may be taken off by the employee with the approval of the Police Chief or his designee. 2019.6 Each calendar quarter, an Shift employee has the option of receiving payment for one- fourth (1/4) of his/her advanced holiday leave. The combination of holiday leave taken off and payment of advanced holiday time may not exceed 52 hours. Any holiday leave remaining as of the last payroll period in December of each year will be paid to the employee at the straight time rate. If an employee terminates for any reason, having taken off hours in excess of his/her prorated share, the value of the overage will be deducted from the employee’s final paycheck. 15.b Packet Pg. 481 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 41 ARTICLE 210 VACATION 210.1 Full time employees shall accrue vacation leave with pay at the rate of 96 hours per year of continuous service since the benefit date for the first five years, 120 hours per year upon completion of five years, 144 hours per year upon completion of 10 years, and 160 hours upon completion of 20 years. 210.2 All employees may accrue a maximum of vacation time not to exceed twice their annual rate. 210.3 Vacation Sellback All employees in this unit are eligible, once annually in December, to request payment for up to 80 hours of unused vacation leave provided that an employee's overall performance and attendance practices are satisfactory. Payment for unused vacation leave is subject to the availability of budgeted funds. 210.4 Patrol Vacation Assignment Prior to November 1st, theThe master vacation schedule shall provide that two officers per watch shall be allowed to sign up for priority vacation for the following year.. Officers shall only be required to sign up for regular workdays. Two additional officers (a total of four) shall be allowed to sign up on the master vacation schedule. The Department, under normal circumstances, dependent upon staffing level needs, may accommodate up to a maximum total of two officers per day per shift of vacation leaveaccrued leave. Accrued leave includes compensatory time, vacation leave and/or holiday leave. Subject to the limitations above, after the posting of shifts/days off for each shift rotation, employees shall be allowed to request, by seniority, for additional available vacation days one month (28 days or 2 pay periods) prior to the start of the rotation. 15.b Packet Pg. 482 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 42 Subject to unforeseen events, employees may be allowed to sign up for additional available vacation days. The department shall make every effort to grant such requests subject to operational needs and such requests shall not be unreasonably denied. 15.b Packet Pg. 483 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 43 ARTICLE 221 SICK LEAVE 221.1 Sick leave is governed by Section 2.36.420 of the Municipal Code. 221.2 Upon termination of employment by death or retirement, a percentage of the dollar value of the employee's accumulated sick leave will be paid to the employee, or the designated beneficiary or beneficiaries, according to the following schedule: A. Death – 50% B. Retirement and actual commencement of PERS benefits: 1. After twenty years of continuous employment – 20% 2. After twenty-five years of continuous employment – 25% 3. After thirty years of continuous employment – 30% C. Job related disability retirement and actual commencement of PERS benefits – 75% with maximum of 1,000 hours payoff. D. Sick leave cannot be used to postpone the effective date of an industrial disability retirement. This provision is intended to reiterate past practice and to exercise the employer’s rights under Government Code, Section 21163. E. Employee use of sick leave shall be deemed confidential and not subject to reporting in monthly or annual personnel evaluations without proof of abuse. 15.b Packet Pg. 484 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 44 ARTICLE 232 FAMILY LEAVE 232.1 An employee may take up to 48 hours of sick leave per year if required to be away from the job to personally care for a member of his/her immediate family. 232.2 An employee may take up to 48 hours of sick leave per year if the family member is a part of the employee's household. “Family member” means any of the followingis defined as: (1) A child, which for purposes of this article means a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in loco parentis. This definition of a child is applicable regardless of age or dependency status. (2) A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee’s spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child. (3) A spouse. (4) A registered domestic partner. (5) A grandparent. (6) A grandchild. (7) A sibling, step-brother, or step-sister. (8) Any other relative living in the same household. (89) Or any other relative as defined by Labor Code 233 and/or Assembly Bill 1522. . 22.3 If the family member is a child, a parent spouse or domestic partner, an An employee may use up to forty-eight (48) hours annually to tend to the illness of a family memberchild, parent, spouse or domestic partner, instead of the annual maximums set forth in paragraphs 22.1 and 22.2 in accordance with Labor Code Section 233 and/or Assembly Bill 1522. 232.34 An employee may take up to 56 hours of sick leave per year if the family member is part of the employee's household and is hospitalized. The employee shall submit written verification of such hospitalization. 15.b Packet Pg. 485 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 45 232.45 The amounts shown above are annual maximums, not maximums per qualifying family member. A member of the employee's immediate family shall mean spouse, domestic partner, child, brother, sister, parent, parent-in-law, step-parent, step-brother, step-sister, grandparent, grandchild or any other relative living in the same household. 232.56 In conjunction with existing leave benefits, unit employees with one year of City service who have worked at least 1,2580 hours in the last year may be eligible for up to 12 weeks of Family/Medical Leave within any 12 month period. Family/Medical leave can be used for: A. A new child through birth, adoption or foster care (maternal or paternal leave). B. To care for the employee’s spouse, son, daughter, parent, or registered domestic partner who has a serious health condition. A seriously ill child, spouse or parent who requires hospitalization or continuing treatment by a physician. C. Placement of an employee's child for adoption or foster care. D. A serious health condition, which makes the employee unable to perform the functions of his or her position. E. To assist a spouse, son, daughter, or parent who is a member of the Armed Forces, including the National Guard or Reserves with a “qualifying exigency” related to covered active duty or a call to active duty status. F. To care for a son or daughter, spouse, parent or “next of kin” covered service member with a serious injury or illness. This leave shall be in addition to leave available to employees under the existing four- month Pregnancy Disability Leave provided by California law. Paid leave, if used for family leave purposes or personal illness, will be subtracted from the 12 weeks allowed by the Family/Medical Leave Program. Employees must use all available vacation, compensatory time off and holiday leave and, if appropriate, sick leave prior to receiving unpaid Family/Medical Leave. 15.b Packet Pg. 486 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 46 232.67 Employees on Family/Medical Leave will continue to receive the City's contribution towards the cost of health insurance premiums. However, employees who receive cash back under the City's flexible benefit Plan will not receive that cash during the Family/Medical Leave. The City will pay only City group health insurance premiums. 232.78 If an employee does not return to work following Family/Medical Leave, the City may collect the amount paid for health insurance by the City during the leave. There are two exceptions to this rule. A. The continuation of a serious health condition of the employee or a covered family member prevents the return. B. Circumstances beyond the employee's control. Further details on Family/Medical Leave are available through the City's "Guide to Family/Medical Leave Program". 15.b Packet Pg. 487 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 47 ARTICLE 243 BEREAVEMENT LEAVE At each employee's option, sick leave may be used for absence from duty due to the death of a member of the employee's immediate family, meaning spouse, child, brother, sister, parent, parent-in-law, step-parent, step-brother, step-sister, grandparent, grandchild, or any other relative living in the same household, provided such leave as defined in this Article shall not exceed 40 hours for each incident. The employee may be required to submit proof of relative's death before being granted sick leave pay. False information given concerning the death of or relationship shall be cause for discharge. 15.b Packet Pg. 488 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 48 ARTICLE 254 CATASTROPHIC LEAVE 254.1 Upon request of an employee and upon approval of the Chief of Police, leave credits (vacation, compensatory time off, or holiday time) may be transferred from one or more employees (donors) to another employee (recipient). The recipient may participate in the program under the six following conditions: A. The recipient is a regular employee. B. The recipient has sustained a life threatening or debilitating illness, injury or condition (The Chief may require that the condition be confirmed by a doctor's report.); or, C. A member of the recipient's immediate family, as defined in Article 2324, has sustained a life threatening or debilitating illness, injury or condition (The Chief may require that the condition be confirmed by a doctor's report.). D. The recipient has exhausted all paid leave; or, in the case of illness of or injury to a recipient's immediate family member, all allowed leave. E. The recipient must be prevented from returning to work for at least 30 days and have applied for a leave of absence without pay for medical reasons. This condition does not apply when the illness or injury involves a member of the recipient's immediate family, rather than the recipient. F. The request for participation in the program shall be made on an Application for Catastrophic Leave Program form. 254.2 Transferring Time The following rules apply when donations of time occur: A. Vacation, compensatory time off, and holiday leave may be transferred by regular employees. B. The time will be converted from the type of leave given (i.e. vacation, holiday, etc.) to sick leave or family care leave, whichever is appropriate, and credited to 15.b Packet Pg. 489 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 49 the recipient's leave time balance on an hour-for-hour basis and shall be paid at the rate of pay of the receiving employee. C. The donations must be a minimum of four hours and, thereafter, in whole hour increments. D. The total leave credits received by the employee shall normally not exceed three months; however, if approved by the Chief, the total leave credits received may be up to a maximum of six months. E. Recipients of family care leave will be allowed to use all hours received, up to the limits of this policy (see D. above), even though such use exceeds the limits for family care leave found in Article 232. F. Donations approved shall be made on a Donation of Time Credits form signed by the donating employee. These donations are irrevocable under any conditions. 254.3 Appeal Rights If an employee is denied participation in the program by the Chief, he/she may appeal this initial decision jointly to the Director of Human Resources and the City Manager. Article 321–Grievance Procedure shall be used for final resolution. 15.b Packet Pg. 490 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 50 ARTICLE 265 WORKERS' COMPENSATION LEAVE Any employee who is absent from duty because of on-the-job injury in accordance with State Workers' Compensation law and is not eligible for disability payments under Labor Code Section 4850 shall be paid the difference between his/her base salary and the amount provided by Workers' Compensation law during the first 90 business days of such disability absence. 15.b Packet Pg. 491 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 51 ARTICLE 276 JURY DUTY AND MILITARY LEAVES 276.1 JURY DUTY Any regular or probationary City employee, when duly called to serve on any jury, and when not excluded there from, or when subpoenaed to appear as a witness at any trial, shall be compensated for the time required to be spent under the jurisdiction of the court by an amount equal to the difference between the pay he/she received as a juror and his/her regular daily rate received from the City. The difference between the time required to be spent on jury duty and the normal workday of the employee sh all be spent performing the employee’s regular job assignments unless the department head, upon approval of the Director of Human Resources, determines this not to be practical. Non-sworn employees assigned to night shift and assigned tocalled to serve on a jury or subpoenaed to appear as a witness at any trial, duty may request the supervisor to flex her/his schedule within the work period to accommodate the required jury duty. In the event the supervisor is unable to flex the work schedule and the employee is required to report to jury duty on the same day s/he is scheduled to work, s/he will report the number of hours spent on jury duty to the supervisor and will be allowed to begin her/his shift an equal number of hours later. In thethis case, the employee will be compensated for the time required to be spent under the jurisdiction of the court by an amount equal to the difference between the pay s/he received as juror/witness and her/his regular daily rate received from the City. 276.2 MILITARY LEAVE Any line-item employee shall receive normal salary and fringe benefits during the first thirty days of any period of temporary military leave. Such compensation shall not exceed thirty calendar days in any one fiscal year. Any temporary military leave in excess of thirty days in one fiscal year shall be taken as vacation leave or leave of absence without pay. 15.b Packet Pg. 492 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 52 ARTICLE 287 GENERAL PROVISIONS 287.1 Payday Paychecks will be disbursed on a bi-weekly schedule. Payday will be every other Thursday. This disbursement schedule is predicated upon normal working conditions and is subject to adjustment for cause beyond the City's control. 287.2 Salary Survey Agencies For the purposes of external comparisons the agencies to be used for review of compensation shall be:  Gilroy  Monterey  Napa  Petaluma  Pleasanton  Salinas  Santa Barbara  Santa Cruz  Santa Maria Parties agree that this survey shall be based on total compensation and shall only be one of the considerations used to determine compensation. 15.b Packet Pg. 493 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 53 ARTICLE 298 RESIDENCY REQUIREMENTS An officer's place of residence shall be within a one and one-half (1 ½) hour driving radius from the San Luis Obispo Police Department. 15.b Packet Pg. 494 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 54 ARTICLE 3029 PROMOTIONAL POLICY Promotions from Police Officer to Police Sergeant shall be subject to the following: 1. Job Announcement. When the Police Department notifies the Department of Human Resources of a Sergeant position vacancy, the Department of Human Resources will publish a job announcement. The job announcement will identify the selection procedure, which includes the application process, test components with their weights expressed as a percentage of the total score, and tentative dates of the testing schedule. Whenever available, the City will identify study materials at least 60 days in advance of a test. 2. Application Process. A completed City application must be received in the Department of Human Resources by the filing deadline. The filing deadline will be at least 30 days from the date the job announcement is released by the Department of Human Resources. 3. Testing Components. A. Written Test: The written test will count as 3020% of the final score. 1. A standardized written test with performance category questions to include department policies and procedure, state law, applicable case law and basic supervisory techniques. A standardized Police Sergeants multiple-choice test as provided by a testing service, such as Cooperative Personnel Services (CPS) or International Personnel Management Association (IPMA). If available, the City will provide a list of suggested study materials. The written test will be prepared by an outside third party that specializes in preparing such type exams. 2. A score of 70% or better on the written test will enable a candidate to proceed in the testing process. A score below 70% will disqualify a candidate from further consideration. 15.b Packet Pg. 495 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 55 3. All candidates will have the right to review with a representative from the Department of Human Resources their own written test results so that the candidate may have the opportunity to improve in the future. 4. The Chief or his/her designee will review the test before it is given to ensure that the exam contains material relevant to a supervisory position in San Luis Obispo. B. Assessment Center will count as 7060% of the final score. 1. The Assessment Center may consist of 2 or more exercises. One of these exercises will be a traditional oral board interview. Other exercises may include a situational role-playing, oral resume, simulation exercises; and a supplemental questionnaire to assess written communication, critical thinking, problem solving and leadership skills, or other testing instruments as determined by the Human Resource Director in consultation with the Police Chief. The Human Resources Director shall determine the weight of each Assessment Center activity. In no case shall the oral interview count less than 7060% of the total Assessment Center score. 2. The evaluators will be members of the law enforcement community. Selection of the evaluators will be made by the Human Resources Director in consultation with the Chief of Police. The Human Resources Director or his/her designee from the HR Department will be responsible for instructing the raters on how to conduct interviews and the scope of the interviews. The panel of evaluators will consist of the following: at least three external members consisting of two (2) law enforcement members and one (1) non-law enforcement and as many cCity employed evaluatorsemployees as deemed appropriate by the Director of Human Resources in consultation with the Chief of Police. 3. A Police Department observer as appointed by the Chief of Police and an Association observer as appointed by the Association may monitor the 15.b Packet Pg. 496 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 56 Assessment Center. The Association observer must be a neutral, non-unit member not a part of, nor directly impacted by the testing process. Both observers shall be subject to approval by the Human Resources Director. The Chief of Police or his/her designee will provide the evaluators and observers with information about the qualifications desired for the position being tested. 4. At the conclusion of the testing process, each candidate will be asked to complete an anonymous evaluation of the testing procedure. This will be used to make improvements on the process. The evaluation will not be used in determining the final outcome of the testing process. CHIEF OF POLICE REVIEW: 1.Staff Evaluation will count as 20% of the total score. In addition to this review, Sworn SLOPD Staff members will be required to complete a Staff evaluation form for each candidate. Staff evaluation form will consist of five categories for each candidate. The categories will be created by the Police Chief (or designated representative) in consultation with the Director of Human Resources. There will be four possible scores for each category on the evaluation form. The last section of the evaluation form will allow for comments on the following two topics: “Candidates Strengths” “Candidates Weakness(es)”. Staff evaluation forms are not weighted and are advisory to the Chief of Police. Subject to the approval of the Police Chief, if supervisor feels s/he is unable to conduct an impartial evaluation due to unfamiliarity with a given applicant, s/he may opt not to evaluate the candidate but will be required to document the lack of familiarity on the evaluation form. 2. Sworn personnel of the same or lessor rank will have the opportunity to participate in the evaluation process on a voluntary basis. Peer evaluation forms will be the same format as the Staff evaluation forms. The preparer of the peer evaluation form will be anonymous. Peer evaluation forms are not weighted and are advisory to the Police Chief. 15.b Packet Pg. 497 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 57 3. The Police Chief will meet with all department supervisors who are capable of attending the monthly staff meeting to discuss candidates. All supervisors in attendance will be allowed to provide input about each candidate. 4. Thethe Chief shall review the candidate’s personnel files, the completed Staff evaluation forms, Peer evaluations forms and take into consideration comments provided at the Staff meeting prior to making an appointment. The staff evaluation will not be provided to the oral panel. Past and present day performance is a significant factor, which should be considered when determining a candidate’s promotability. Each candidate who passes the written test will be evaluated by all sworn members of the Department with the rank of sergeant or lieutenant, excluding the Captain s and the Chief of Police. Subject to the approval of the Police Chief, if a supervisor feels he or she is unable to conduct an impartial evaluation due to unfamiliarity with a given applicant, he or she may opt not to evaluate the candidate but will be required to document the lack of familiarity on the evaluation form. Staff evaluators will be able to review the three (3) most current performance evaluations and documentation from the last 24 months of counseling sessions. Staff evaluations are to be in writing on a form developed by the Director of Human Resources and signed by the evaluator. Each applicant’s evaluation forms shall be available for review by the applicant. The applicant shall not have access to the other applicants’ evaluation forms. Final scores will be tabulated by the Department of Human Resources. Prior to the score tabulation, applicants will have the opportunity to request in writing that the Department of Human Resources correct any factual errors contained in the applicant’s staff evaluation. 1. Peer evaluation is not compulsory, is only advisory to the Chief of Police and does not count toward the final score. 15.b Packet Pg. 498 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 58 2. Peer evaluation is limited to those candidates who pass the Assessment Center. 3. All regular Department employees below the rank of Sergeant may complete a peer evaluation on a form developed by the Director of Human Resources. 4. Participants must verify their eligibility to participate in the peer review process. 5. The results of the peer evaluation will be tabulated by the Department of Human Resources. All forms will be anonymously forwarded to the Chief of Police. 6. The tabulated results of the peer evaluation for each individual candidate shall be released to the individual candidate upon request of the Human Resources Director after the eligibility list has been certified. 4. Final Selection. A. Upon completion of the testing process, the Department of Human Resources shall tabulate the scores. B. Candidates will be ranked by total score. Candidates scoring below 70% will be ranked unqualified and not placed on the eligibility list. Each candidate will be individually given his/her score in writing. Candidates who are ranked 1 through 3 (plus one for each additional vacancy if there is more than one vacant position) will be considered equally qualified for promotion and eligible for appointment by the Police Chief. C. Final selection by the Police Chief will be in accordance with the City’s Personnel Rules and Regulations. following a discussion of the staff evaluations at the Chief’s regularly scheduled staff meeting with sworn and non-sworn managers and a The Police Chief will conduct a final selection interview with the top three candidates (plus one for each additional vacancy over one). D. The eligibility list shall be valid for one year unless extended, in accordance with the City’s Personnel Rules and Regulations. The timing of establishing a new 15.b Packet Pg. 499 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 59 eligibility list will be subject to the department’s goal of maintaining a current eligibility list at all times in order to fill projected vacancies. E. Announcements for promotional opportunities for members of the Association will list testing and scoring processes that will be followed. Once defined, testing and scoring processes will not be modified. If any of the top three candidates is not selected during the selection process, that person will be given a written reason by the Police Chief as to why he/she was not selected. The City agrees to an opener to discuss the promotional process if the Police Chief goes below the top three (3) candidates in making his/her selection on promotional exams two (2) or more times during the term of this contract. 15.b Packet Pg. 500 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 60 ARTICLE 310 PERFORMANCE EVALUATIONS 31.1All regular full-time employees shall receive an annual written performance evaluation from their supervisor within thirty (30) days of the employee’s anniversary date absent exceptional circumstances. All regular full-time employees shall also receive rotational bi-monthly written performance feedback from their supervisor. 31.2For purposes of uniformity in the performance evaluation process, the following definitions are provided: 1. UNACCEPTABLE Consistently fails to meet performance standards and objectives for the position. Performance indicates serious lack of knowledge of basic skills or lack of application of skills. Requires immediate attention and improvement. 2. IMPROVEMENT NEEDED Performance is frequently less than expected of a competent employee for the position. Performance indicates some deficiency in basic skill, knowledge or application. Specific efforts to improve desired. 3. MEETS PERFORMANCE STANDARDS Performance indicates competent and effective adherence to expected standards. Performance indicates fully acceptable demonstration of knowledge and skills. 4. EXCEEDS PERFORMANCE STANDARDS Performance consistently above standards for position. Performance indicates superior knowledge and application of skills. Formatted: Indent: Left: 0" 15.b Packet Pg. 501 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 61 5. OUTSTANDING Exceptional performance. Application of knowledge, skills and results are consistently well beyond the expected standard for position. 31.3All regular full-time employees shall receive their annual step increase on the employee’s anniversary date regardless of whether the evaluation process has been completed, absent exceptional circumstances. 31.4Employees shall have the right to review their personnel file or authorize, in writing, review by their representative. No adverse material will be placed in an employee’s personnel file without prior notice and a copy given to the employee. An employee shall have 30 days within which to file a written response to any evaluation and/or adverse comment entered in his/her personnel file. Such written response shall be attached to, and shall accompany, the adverse comment. Formatted: Indent: Left: 0" Formatted: Indent: Left: 0" 15.b Packet Pg. 502 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 62 ARTICLE 321 GRIEVANCE PROCEDURE 321.1 A grievance is defined as an alleged violation, misinterpretation or misapplication of the Employer-Employee Resolution, the Personnel Rules and Regulations, this MOA or any existing written policy or procedure relating to wages, hours or other terms and conditions of employment excluding disciplinary matters. A grievance filed by an individual employee should be clearly identified as a formal grievance. This will be accomplished through the use of a formal grievance form (See Appendix B). 321.2 Any employee may file and process a grievance by providing the time, place and circumstances of the action prompting the grievance. A formal grievance should be filed only after the employee has attempted to resolve the disagreement with his/her immediate supervisor. As a courtesy, the employee should advise his/her supervisor of any intention to file a formal grievance. This action must take place within 15 business days of the occurrence of the grievance. Employees may be accompanied by a representative at each step of the process. If a specific action to be grieved affects several employees, those employees may consolidate their grievances and be represented. 321.3 Each grievance shall be handled in the following manner: A. The employee who is dissatisfied with the response of the immediate supervisor should discuss the grievance with the supervisor’s immediate superior. If the matter can be resolved at that level to the satisfaction of the employee, the grievance shall be considered terminated. B. If still dissatisfied, the employee may immediately submit the grievance in writing to the Chief for consideration, stating the facts on which it was based, including the provision of the rules, regulations, agreement, or written policy said to be violated, and the proposed remedy. This action must take place within fifteen business days of the occurrence of the grievance. 15.b Packet Pg. 503 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 63 321.4 After consideration of a formal grievance, which could include consultation and/or further discussion, the Chief, within 15 business days of the filing of the formal grievance, will provide a written response to the employee representatives advising of his/her decision. If the employee accepts the Chief’s decision, the grievance shall be considered terminated. 321.5 If the employee is dissatisfied with the Chief’s decision, the employee may immediately submit the grievance in writing to the Human Resources Director within five business days of receiving the Chief’s decision. The Human Resources Director shall confer with the employee and the Chief and any other interested parties, and shall conduct such other investigations as may be advisable. 321.6 The results or findings of such conferences and investigations shall be submitted to the City Manager in writing within fifteen business days of receiving the employee’s written request. The City Manager will meet with the employee if the employee so desires before rendering a decision with respect to the complaint. The City Manager’s decision shall be in writing and given to the employee within fifteen business days of receiving the Human Resources Director’s results and findings. Such decision shall be final unless the employee requests an appeal of the decision. 321.7 Hearing Officer – A grievance is appealable, following several preliminary steps, to a Hearing Officer whose decision shall be final and binding: A. The employee will have five business days following receipt of the City Manager’s decision to submit a written request to the Human Resources Director for review of the decision. The Human Resources Director will obtain a list of five potential hearing officers from the State Mediation and Conciliation Service. Then following a random determination of which party (City or appellant) begins, parties shall alternately strike one name from the list until only one remains. 15.b Packet Pg. 504 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 64 B. Within thirty business days the hearing officer shall review the record and conduct a hearing on the matter. Within ten business days the hearing officer shall render a decision, which shall be final and binding. C. Any dispute regarding the eligibility of an issue for the grievance process may be appealed through the process ultimately to the Hearing Officer who shall decide on the eligibility prior to ruling on the merits. D. Any fees or expenses of the Hearing Officer shall be payable one-half by the City and one-half by the appellant. 321.8 Provided that implementation processes are correctly followed, amending the Employer- Employee Resolution or the Personnel Rules and Regulations or creating new or amended written policies or procedures may not be grieved but shall first be subject to notice and consultation or meeting and conferring with the Association as provided in the Employer–Employee Relations Resolution, MOA Article 365 “Notice to the Association”, and/or by State Law. 321.9 Disciplinary matters are excluded in Section 321.1. The rules governing disciplinary matters for employees covered by this MOA are contained in Sections 2.36.320 through 2.36.350 of the Personnel Rules and Regulations of the City of San Luis Obispo. 15.b Packet Pg. 505 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 65 ARTICLE 332 LAYOFFS 332.1 Layoffs shall be governed by job performance and seniority in service within the department and job classification. For the purpose of implementing this provision, job performance categories shall be defined as follows: Category 1: Performance that is Unacceptable or Improvement Needed. Performance defined by this category is evidenced by the employee's two most recent performance evaluations with an overall rating that falls within the lowest two categories of the performance appraisal report. Category II: Performance that Meets Performance Standards, Exceeds Performance Standards, or is Outstanding. Performance defined by this category is evidenced by an employee's two most recent performance evaluations with an overall rating that falls within the top three per formance categories of the performance appraisal. 332.2 A regular employee being laid off shall be that employee with the least seniority in the particular job classification concerned who is in the lowest job performance category. Employees in Category I with the lowest seniority will be laid off first, followed by employees in Category II. Should the two performance evaluations contain overall ratings that are in the two different Categories as defined above, the third most recent evaluation overall rating shall be used to determine which performance category the City shall use in determining order of layoffs. 15.b Packet Pg. 506 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 66 332.3 The parties agree that employees who are laid off pursuant to this Article shall have reemployment rights prior to the employment of individuals on an open or promotion list. The employee to be rehired must, at the time of rehire, meet the minimum qualifications as stated in the appropriate class specifications. Employees will be rehired on the basis of last out, first in. 15.b Packet Pg. 507 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 67 ARTICLE 343 WORK ACTIONS 343.1 Participation by an employee in a strike or a concerted work stoppage is unlawful and shall terminate the employment relation. Provided, however, that nothing herein shall be so construed as to affect the right of any employee to abandon or to resign his employment. 343.2 The Association shall not hinder, delay, interfere, or coerce employees of the City in their peaceful performance of City services by strike, concerted work stoppage, cessation of work, slow-down, sit-down, stay-away, or unlawful picketing. 343.3 In the event that there occurs any strike, concerted work stoppage, or any other form of interference with or limitation of the peaceful performance of City services prohibited by this Article, the City, in addition to any other lawful remedies or disciplinary actions, may by the action of the Municipal Employee Relations Officer cancel any or all payroll deductions, prohibit the use of bulletin boards, prohibit the use of City facilities, and withdraw recognition of the Association. 343.4 Employee members of the Association shall not be locked out or prevented by management officials from performing their assigned duties when such employees are willing and able to perform such duties in the customary manner and at a reasonable level of efficiency. 343.5 Any decision made under the provisions of this Article may be appealed to the City Council by filing a written Notice of Appeal with the City Clerk, accompanied by a complete statement setting forth all of the facts upon which the appeal is based. Such Notice of Appeal must be filed within 10 working days after the Association first received notice of the decision upon which the complaint is based, or it will be considered closed and not subject to any other appeal. 15.b Packet Pg. 508 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 68 ARTICLE 354 COMMUNICATION PROCESS 354.1 Conferences There will be meetings as needed between the Chief of Police and management member(s) and at least two Association representatives to discuss problems or other subjects of mutual interest. Minutes of the meeting will be maintained to reflect topics discussed, actions to be taken, the party responsible for any action and the expected completion date. 354.2 Quarterly Meetings Two to four representatives of the Association, the City Manager (or designee), Chief of Police (or designee), and management representative(s) designated by the City will meet quarterly if there are issues of concern to the parties. No issues will be brought to this quarterly meeting without first having been discussed with the Chief of Police at a previous conference. 15.b Packet Pg. 509 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 69 ARTICLE 365 NOTICE TO THE ASSOCIATION Prior to making changes directly and primarily relating to matters within the scope of representation, the City shall give the Association advance notice and the opportunity to meet and confer with City representatives prior to making the change(s). 15.b Packet Pg. 510 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 70 ARTICLE 376 EQUIPMENT A. The City agrees to provide each sworn employee of the Association a nylon basket weave duty gun belt as their primary duty gun belt. Upon request, the City also agrees to provide each sworn employee of the Association a smooth nylon utility belt and related accessories. The smooth nylon utility belt will only be worn as directed by the Chief of Police. The nylon basket weave duty gun belt and nylon smooth utility belt will become the property of the employee and the employee agrees to maintain these pieces of equipment. The smooth nylon utility belt will consist of: belt, handcuff case, chemical spray ho lder, baton holder (to fit the baton carried by the employee), magazine case (to fit the magazines carried by the employee), holster (to fit the weapon carried by the employee), radio holder (to fit the radio carried by the employee), and four belt keepers. Any other accessories will be the responsibility of the employee. B. All appropriate classifications shall be issued A-Level IIIA Ballistic Helmet with riot face shield fixed. C. All appropriate classification shall be issued a chemical protective breathing mask fitted with belt mounted carrying bag. All protective masks shall be in compliance with CalOSHA minimum standards including employee training. D. Non-sworn employees not subject to assignments necessitating helmets/chemical masks will not have them issued. E. All appropriate classifications shall be issued a Stream Light model SL–20 or technologically similar rechargeable flashlight with 12V/120V charging systems. F. Each marked police unit assigned to unit members shall be equipped with: 1. A Patrol rifle fitted with a hands free assault sling and stock mounted weapon light. 15.b Packet Pg. 511 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 71 2. A 12-guage pump shotgun fitted with an extended magazine, hands -free assault sling and stock-mounted weapon light; and 3. A 12-guage pump shotgun designated “less lethal” fitted with a hands -free assault sling and stock-mounted weapon light. Notwithstanding the above, the City retains the right to select the specific equipment necessary to fulfill its obligation to provide necessary and appropriate safety equipment. G. All department owned firearms are to be subject to annual inspection by a certified department armorer or independent Gun Smith. The certified department armorer or independent Gun Smith shall provide an inspection report for each firearm inspected. Firearms with noted defects, wear and tear, or questionable serviceability shall be replaced and not returned to service. 15.b Packet Pg. 512 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 72 ARTICLE 387 TEMPORARY MODIFIED DUTY The City and the Association have met and conferred on a modified duty/return to work policy, which is established by mutual agreement as Police Department Lexipol Policy #1052Operations Directive L-02, dated May 12, 1999. 15.b Packet Pg. 513 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 73 ARTICLE 398 WORK SCHEDULES 38.1 39.1 Patrol 3/12 Work Plan A. In an effort to improve scheduling, the Chief of Police implemented a 3/12 Work Hour Plan. B. The basic work pattern for sworn officers on patrol shall be three 12-hour days each week, plus assigned pay back. Employees will normally be assigned to work 160 hours in a 28-day work cycle. In addition employees who attend shall be compensated for briefing time. C. If an employee does not work the full 160 hours in a 28-day work cycle, the City shall deduct the unworked hours from an employee’s accrued holiday or vacation balances, unless the unworked hours result for reasons of excused paid absence or because the City did not assign a pay-back shift. 398.2 Shift Adjustment Management and the POA reaffirm that scheduling is a management responsibility. However in the matter of shift adjustment policies, it is agreed that the following guidelines will be followed: A. In any situation necessitating a shift adjustment, volunteers will first be sought. B. Shift adjustments will not be for more than two hours. C. Shift adjustments for special units or assignments are not covered by this guideline and remain the discretion of the Unit Supervisor or Bureau Commander. D. Whenever volunteers cannot be located, Officers assigned will be chosen sequentially by seniority. Formatted: Left, No bullets or numbering 15.b Packet Pg. 514 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 74 E. Generally, no more than two Officers per shift should be ordered to adjust unless a specific event necessitates it. F. At least 14 days notice will normally be given, but in no event will less than seven days notice be given, for an ordered shift adjustment. G. An Officer authorized to shift adjust will not suffer loss of briefing pay or other normal benefit. H. Officers will be given at least ten hours between shifts for ordered non- emergency shift adjustments. I. Shift adjustments will not be ordered to deal with court or shift continuation unless it is necessary to insure the Officer has adequate rest. If court or another assignment prevents an Officer from getting proper rest between shifts, the Officer and the Watch Commander may arrange a shift adjustment to meet this need. With approval, the Officer could opt to use adjusted court time towards normal work hours instead of overtime, or to adjust shift start time up to four hours. In cases where the Watch Commander determines an adjustment is warranted but does not have sufficient manpower, s/he is authorized to bring in a replacement (on O/T) for up to four hours. J. Shift adjustments will not be limited by day or time except as articulated above. K. It is noted that either party may reopen these issues at the time of contract renewal. 398.3 Communications Technician 3/12 Work Schedule I. SHIFT ASSIGNMENTS: A. Work shift assignments will consist of Day Watch and Day Watch relief, 0700 hours-1900 hours, Night Watch and Night Watch relief, 1900 hours-0700 hours (with the exception of shift adjustments as defined in Section VI). B. The work schedule is defined as eighty (80) hours during a fourteen (14) day schedule. The eighty hour work period shall consist of a total of six (6) twelve (12) hour shifts with one eight (8) hour payback shift. A work week is defined as three (3) twelve (12) hour shifts with one eight (8) hour payback shift attached during the fourteen (14) day work schedule. Days off shall be in 15.b Packet Pg. 515 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 75 conjunction with the employee work week and not split unless there is consent by the employee. Example: Week one, M, T, W, week two, M, T, W, TH (8 Hour Payback.) C. Paybacks shall be scheduled for eight (8) hours during the employee’s normal work hours in conjunction with workdays by seniority. D. Every employee shall sign up for a relief shift before another employee is assigned to work a second relief shift. 1. The day watch relief will be assigned to cover absences for Communications Technicians on day watch and the night watch relief will be assigned to cover absences for Communications Technicians on night watch. Relief will only be assigned to cover the opposite shift by seniority (e.g. day covers for night) when staffing vacancies exist or when necessitated by special events or circumstances (e.g. Mardi Gras). Permanent and temporary shift vacancies may be staffed by reassignment of the relief shift with seven (7) days prior notice or by voluntary agreement. 2. Relief will not be scheduled to work a shift in the middle of days off. Example: Week one, M, T, W, off, F, off, off. 3. Relief will have at least two (2) days off in between work weeks. Example: M, T, W, T, off, off, S, M, T. 4. Communications Technicians assigned to relief dispatch work schedules shall be compensated for hardship duties by receiving five (5%) percent additional salary while assigned. II. SHIFT SIGN UP: A. The Communications Manager will post the annual shift and leave sign up schedule by September 15th each year for the following year. Communication Technicians sign up for shift selection, selected days off, vacation, compensatory time off (CTO) and holiday time. B. Employees will sign up by seniority for their choice of shifts, payback hours, and leave hours for each of the three annual rotations. Shift selection will be by seniority, including relief shift. C. Employees shall have three days (72 hrs) from the date of receipt of the schedule to make their selection for work shifts, days off and annual vacation accrual. Employees are entitled to sign up for the total of their annual accrual of vacation time utilizing coding “V". 15.b Packet Pg. 516 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 76 1. Communications Technicians will sign-up for “V” days with the expectation that the center is fully staffed and the relief from that watch is available to cover. Communication Technicians may not sign up for vacation time during the initial sign -up if it will incur overtime. First draft vacation requests shall be approved with mandatory overtime in the event of unit vacancies after the master schedule is completed. D. Once all unit employees have had the opportunity to sign up for their maximum accrual of vacation time, they shall be entitled to again sign up by seniority for all accrued compensatory time off (CTO), holiday hours and previously unselected leave time they will have accumulated by the date requested. Compensatory time off shall be coded “CTO", holiday leave and all other previously unselected leave time shall be coded “H". 1. Second draft CTO, holiday and previously unselected leave time may be granted and overtime considered for unit vacancies. Overtime will be posted to accommodate such leave requests. Should the overtime remain unfilled, the requested leave time shall be cancelled. 2. In the event that scheduled CTO time is cancelled, the affected employee shall be paid for the CTO hours scheduled, work the shift and be compensated with overtime as defined in Section 11.3. E. The Communications and Records Manager shall approve leave time by seniority and post same on the electronic schedule by the start of each rotation. F. Employees generally will not be allowed to work more than two consecutive shift assignments without rotation to an alternate shift. The Communications and Records Manager may consider requests to work more than two consecutive rotations for hardship and educational purposes. In no case will a senior employee be adjusted from shift preference without their consent to mitigate requested hardship or educational requests. 1. Any request for a change or deviation between employees (i.e. shift rotation trade) must be submitted in memo form signed by both affected employees within one week of posting the tentative schedule. Requests will be forwarded through the chain-of-command for a final decision by the Bureau Commander or designee. If approved, affected employees will also trade seniority for selection of days off. For scheduling purposes, the shift change will affect only the two employees involved. Affected employees will receive credit for the shift they signed up for. III. SHIFT REASSIGNMENT CREATED BY UNDER STAFFING: 15.b Packet Pg. 517 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 77 A. If an employee is reassigned to a long term vacancy and the absent employee returns to duty, both employees shall return to their originally selected shift. B. In the event of a staffing vacancy the reassigned employee who was reassigned shall have the option of returning to their originally selected shift or remaining for the duration of the designated shift once the vacancy is filled. C. In the event an employee is reassigned from a selected shift to a designated shift, the employee may elect to receive work credit for either shift to meet rotation requirements. IV. SHIFT TRADE: A. All requests for shift trades between employees shall be submitted utilizing the Substitute Work Agreement form. Requests will be approved by a Bureau Commander or designee. V. LEAVE TIME CANCELLATION: A. In the event an employee opts to cancel scheduled time off, they will by email notify the Communication and Records Manager. The Communication and Records Manager will by email, notify all unit members of the available cancelled leave time. By seniority, employees junior to the employee canceling leave time may request time off utilizing the cancelled dates. If the cancelled time was priority signup, the department shall grant such time off with the same consideration as originally scheduled as outlined in II. C., as long as the employee has the vacation time and does not exceed their annual allotment. If the cancelled leave time was secondary signup, the overtime consideration articulated in II. D. shall be applied. VI. SHIFT ADJUSTMENTS: A. Shift adjustments on a regular scheduled day required to staff Communication Technician vacancies or sick leave will not exceed four (4) hours without the consent of the affected employee. When shift adjustments are required, there shall be a minimum of ten (10) hours between shifts without loss of compensation. B In any situation necessitating a shift adjustment, volunteers will first be sought. Whenever volunteers cannot be located, employees will be chosen sequentially by seniority. 1. At least fourteen (14) days notice will be given on planned leave. 15.b Packet Pg. 518 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 78 2. An employee authorized to shift adjust will not suffer loss of briefing pay or other normal benefit. C. The Communication and Records Manager and/or Supervisors shall notify employees via email of all changes made to their work schedule at the time said change is made. VII. MEAL AND REST PERIODS: A. Meal periods shall consist of not less than thirty (30) minutes paid subject to interruption, as staffing permits. Two fifteen (15) minute rest periods (breaks) shall be provided, as staffing permits. Breaks may be taken using any combination of the total time allowed. Meal and rest periods (breaks) are subject to interruption and must be taken within the building. 39.4 Field Service Technicians assigned primarily to field duties will receive a 30-minute paid lunch break as part of their regular shift as staffing and calls permit. They will remain subject to call and interruption during their lunch period. 39.5Investigations – Division Work Schedule A. Investigators may participate in a 4/10 work schedule in accordance with the City’s alternate work schedule policy. The schedule will include a 30 minute unpaid lunch as part of their regular shift as staffing and calls permit. Investigators will remain subject to call and interruption during their lunch period.. If investigators are called back to work during the lunch period, the time will be considered time worked. B. The Investigative Lieutenant will determine the work days and hours for those employees who work the 4/10 schedule based on the coverage needs of the entire unit. The schedule may include shifts beginning at 6:45 a.m. with attendance at patrol briefings. Investigators who attend patrol or other daily briefings shall do so as part of their regular shift hours. 38.6 39.6 Other division/assignments may be provided alternate work schedules under the following language: Formatted: Indent: Left: 0" 15.b Packet Pg. 519 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 79 Employees may request that the Department Head or his/her designee consider alternate work schedules. Examples of alternate work schedules include 4/10 schedules, 9/80 schedules, 12-hour schedules, flexible schedules, etc. Alternate schedules may provide for paid or unpaid lunch periods of 30, 45 or 60 minutes. Except in cases of emergency, employees will be provided advance notice of at least thirty calendar days prior to having an alternate work schedule discontinued. Such notice does not apply to moving between alternate schedules, temporary schedule changes, flexible schedules, etc. If an alternate schedule is discontinued, the Department will notify the Association of the reason(s) for ending the schedule. Employees on flexible/alternate schedules shall continue to accrue time on the standard eight (8) hour day. Accrued leave shall be charged based on the number of hours missed due to a flexible schedule. Flexible/alternate schedules implemented for non-sworn employee(s) may have a different FLSA seven (7) day work cycle established. Once established, the FLSA work schedule shall not be changed on a frequent or routine basis. 15.b Packet Pg. 520 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 80 ARTICLE 4039 SWAT SWAT team members are required to maintain a higher standard of physical fitness than the normal employee. The City will reimburse each SWAT team member who purchases personal exercise equipment or who voluntarily joins a physical fitness gym for the cost of the membership and monthly charges up to a maximum yearly rate of $375.00 per member. At the City’s request each member requesting reimbursement may be required to provide proof of purchase or of membership and active participation. 15.b Packet Pg. 521 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 81 ARTICLE 410 TRAUMATIC INCIDENTS Employees involved in a traumatic critical incident as defined by Operations Directive T- 12Department Policy, where the employee may be subject to investigation, shall be advised of his/her right to representation. 15.b Packet Pg. 522 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 82 ARTICLE 421 NO DISCRIMINATION 42.1 There shall be no discrimination by the City of San Luis Obispo in employment conditions or treatment of employees on the basis of race, color, religion, national origin, sex, sexual orientation, age, marital status, physical or mental disability, association membership or non-membership, or participation in the activities of the Association. 42.2 There shall be no discrimination by the San Luis Obispo Police Officers Association in treatment of employees on the basis of race, color, religion, national origin, sex, sexual orientation, age, marital status, physical or mental disability, Association membership or non-membership, or participation in the activities of the Association. 15.b Packet Pg. 523 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 83 ARTICLE 432 STAFFING The current number of positions in the Police Department represented by the Association is Forty-FiveThree (4543) Police Officers, ElevenTen (1110) Communication Technicians, One (1) Police Field Service Technicians, Five (5) Police Records Clerks, One (1) Property and Evidence Clerk, and One (1) Evidence Technician. If it becomes necessary for the City to exercise its management right to change those staffing levels, the City acknowledges its responsibility to meet and confer with the Association on the impacts of any such changes. 15.b Packet Pg. 524 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 84 ARTICLE 443 FULL AGREEMENT It is understood this Agreement represents a complete and final understanding on all negotiable issues between the City and the Association. This Agreement supersedes all previous Memoranda of Understanding or Memoranda of Agreement between the City and the Association except as specifically referred to in this Agreement. The parties, for the term of this Agreement, voluntarily and unqualifiedly agree to waive the obligation to negotiate with respect to any practice, subject or matter not specifically referred to or covered in this Agreement even though such practice, subject or matter may not have been within the knowledge of the parties at the time this Agreement was negotiated and signed. In the event any new practice or subject matter arises during the term of this Agreement and an action is proposed by the City, the Association will be afforded notice and shall have the right to meet and confer upon request. 15.b Packet Pg. 525 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 85 ARTICLE 454 SAVINGS CLAUSE If any provision of this Agreement should be held invalid by operation of law or by any court of competent jurisdiction, or if compliance with or enforcement of any provision should be restrained by any tribunal, the remainder of this Agreement shall not b e affected thereby, and the parties shall enter into a meet and confer session for the sole purpose of arriving at a mutually satisfactory replacement for such provision within a 30 day work period. If no agreement has been reached, the parties agree to invoke the provision of impasse under Resolution 6620. 15.b Packet Pg. 526 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 86 ARTICLE 465 RENEGOTIATIONS If either party wishes to make changes to this Agreement, that party shall serve upon the other its written request to negotiate. Such notice and proposals must be submitted to the other party not less than 105 days prior to the end of the Agreement. If notice is properly and timely given, negotiations shall commence no later than 90 days prior to the end of the Agreement. 15.b Packet Pg. 527 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 87 ARTICLE 476 TERM OF AGREEMENT This Agreement shall become effective January 1, 20162012, and shall continue in full force and effect until expiration at midnight, June 30, 2018December 31, 2015. SIGNATURES 1. Classifications covered by this Agreement and included within this unit are shown in Appendix “A”. 2. This Agreement does not apply to temporary employees. This Agreement was executed by the following parties: CITY OF SAN LUIS OBISPO SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION ____________________________________ _______________________________ Richard Bolanos, Chief Negotiator Stuart D. AdamsDale E. Strobridge, Chief Negotiator Chief Negotiator ____________________________________ ______________________________ Monica Irons, Human Resources Director Aaron SchaferMatt Blackstone, SLOPOA President Negotiator ____________________________________ ______________________________ Greg Zocher, Human Resources Manager Amy ChastainChristy Beckwith, Negotiator ______________________________ Russ Griffith, Negotiator ______________________________ Chad Pfarr, Negotiator 15.b Packet Pg. 528 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 88 ______________________________ Barbara Sims, Negotiator 15.b Packet Pg. 529 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 89 APPENDIX A CLASSIFICATION Non-Sworn Communications Technician Evidence Technician* Police Field Service Technician* Police Cadet Police Records Clerk I* Police Records Clerk II* Property and Evidence Clerk*  Denotes Non-Shift classifications Sworn Police Officer 15.b Packet Pg. 530 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 90 APPENDIX B GRIEVANCE FORMS 15.b Packet Pg. 531 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 91 CITY OF SAN LUIS OBISPO PAGE _____ OR _____ FORMAL GRIEVANCE INSTRUCTIONS: Grievance must be filed within 15 business days of the occurrence. First discuss with your Immediate Supervisor, then with your Supervisor’s Superior. If not resolved, complete this form and distribute in accordance with departmental procedures. Grievant’s Name (PLEASE PRINT OR TYPE) Class Title Has this grievance been discussed with your Immediate Supervisor? Date of Discussion Name of Immediate Supervisor Title Has this grievance been discussed with your Supervisor’s Superior? Date of Discussion Name of your Supervisor’s Superior Title 1. What is the action or situation about which you have a grievance? (Be specific, give: date, time, location, and witnesses.) 2. What do you think should be done about it? 3. What was your Supervisor’s response? What provision of the Rules, Regulations, or Agreement was violated? Article of MOA Department Rule Date of Grievable Incident What other person do you want notified of any hearings held or actions taken on this grievance? Name: Mailing Address: His/her role in grievance: Grievant’s Signature: ____________________________________ Date: ____________________ Received by: ___________________________________________ Date: ____________________ 15.b Packet Pg. 532 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) 92 CITY OF SAN LUIS OBISPO GRIEVANCE APPEAL INSTRUCTIONS: Appeal to the City Manager must be filed within five (5) business days of receipt of the Chief of Police’s decision. Appeal to the Hearing Officer must be filed within five (5) business days of receipt of the decision of the City Manager. Complete form and distribute in accordance with departmental procedures. Grievant’s Name (PLEASE PRINT OR TYPE) Class Title Date of Grievance Initiation I wish to appeal the Grievance Response signed by: Name: Title: Date: Level to which grievance is being appealed: (CHECK ONE) City Manager via Personnel Director Hearing Officer Reason for Appeal: Grievant’s Signature: ____________________________________ Date: ___________________ Received by: ___________________________________________ Date: ___________________ 15.b Packet Pg. 533 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) APPENDIX C Salary Range Listing - January 2016 - June 2018 JANUARY 2016     Title  Biweekly  Step 1   Biweekly  Step 2  Biweekly  Step 3  Biweekly  Step 4  Biweekly  Step 5  Biweekly  Step 6   Biweekly  Step 7   Biweekly  Step 8  Biweekly  Step 9  POLICE RECORDS CLERK I 1,596$    1,680$    1,768$   1,861$   1,959$   2,062$   2,170$    xx POLICE RECORDS CLERK II 1,768$    1,861$    1,959$   2,062$   2,170$   2,284$   2,404$    xx POLICE CADET 1,964$    2,067$    2,176$   2,291$   2,412$   2,539$   2,673$    xx POLICE FIELD SERV TECH 2,075$    2,184$    2,299$   2,420$   2,547$   2,681$   2,822$    xx PROPERTY & EVIDENCE CLERK 2,075$    2,184$    2,299$   2,420$   2,547$   2,681$   2,822$    xx COMMUNICATIONS TECH 2,126$    2,238$    2,356$   2,480$   2,611$   2,748$   2,893$    xx EVIDENCE TECHNICIAN 2,840$    2,989$    3,146$   3,312$   3,486$   3,669$   3,862$    xx POLICE OFFICER 2,565$    2,700$    2,842$    2,992$    3,149$    3,315$    3,489$    3,673$    3,866$     JULY 2016 Summary of Changes: 1% Recruitment and Retention Market Increases     Title  Biweekly  Step 1   Biweekly  Step 2  Biweekly  Step 3  Biweekly  Step 4  Biweekly  Step 5  Biweekly  Step 6   Biweekly  Step 7   Biweekly  Step 8  Biweekly  Step 9  POLICE RECORDS CLERK I 1,611$    1,696$    1,785$   1,879$   1,978$   2,082$   2,192$    xx POLICE RECORDS CLERK II 1,785$    1,879$    1,978$   2,082$   2,192$   2,307$   2,428$    xx POLICE CADET 1,985$    2,089$    2,199$   2,315$   2,437$   2,565$   2,700$    xx POLICE FIELD SERV TECH 2,096$    2,206$    2,322$   2,444$   2,573$   2,708$   2,850$    xx PROPERTY & EVIDENCE CLERK 2,096$    2,206$    2,322$   2,444$   2,573$   2,708$   2,850$    xx COMMUNICATIONS TECH 2,148$    2,261$    2,380$   2,505$   2,637$   2,776$   2,922$    xx EVIDENCE TECHNICIAN 2,868$    3,019$    3,178$   3,345$   3,521$   3,706$   3,901$    xx POLICE OFFICER 2,592$    2,728$    2,872$    3,023$    3,182$    3,349$    3,525$    3,710$    3,905$     JANUARY 2017     Title  Biweekly  Step 1   Biweekly  Step 2  Biweekly  Step 3  Biweekly  Step 4  Biweekly  Step 5  Biweekly  Step 6   Biweekly  Step 7   Biweekly  Step 8  Biweekly  Step 9  POLICE RECORDS CLERK I 1,644$    1,730$    1,821$   1,917$   2,018$   2,124$   2,236$    xx POLICE RECORDS CLERK II 1,820$    1,916$    2,017$   2,123$   2,235$   2,353$   2,477$    xx POLICE CADET 2,024$    2,131$    2,243$   2,361$   2,485$   2,616$   2,754$    xx POLICE FIELD SERV TECH 2,138$    2,250$    2,368$   2,493$   2,624$   2,762$   2,907$    xx PROPERTY & EVIDENCE CLERK 2,138$    2,250$    2,368$   2,493$   2,624$   2,762$   2,907$    xx COMMUNICATIONS TECH 2,191$    2,306$    2,427$   2,555$   2,689$   2,831$   2,980$    xx EVIDENCE TECHNICIAN 2,924$    3,078$    3,240$   3,411$   3,591$   3,780$   3,979$    xx POLICE OFFICER 2,643$    2,782$    2,928$    3,082$    3,244$    3,415$    3,595$    3,784$    3,983$     Summary of Changes: 2% COLA all classifications Summary of Changes: 2% COLA all classifications 15.b Packet Pg. 534 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) JULY 2017 Summary of Changes: 1% Recruitment and Retention Market Increases     Title  Biweekly  Step 1   Biweekly  Step 2  Biweekly  Step 3  Biweekly  Step 4  Biweekly  Step 5  Biweekly  Step 6   Biweekly  Step 7   Biweekly  Step 8  Biweekly  Step 9  POLICE RECORDS CLERK I 1,660$    1,747$    1,839$   1,936$   2,038$   2,145$   2,258$    xx POLICE RECORDS CLERK II 1,839$    1,936$    2,038$   2,145$   2,258$   2,377$   2,502$    xx POLICE CADET 2,045$    2,153$    2,266$   2,385$   2,511$   2,643$   2,782$    xx POLICE FIELD SERV TECH 2,158$    2,272$    2,392$   2,518$   2,650$   2,789$   2,936$    xx PROPERTY & EVIDENCE CLERK 2,158$    2,272$    2,392$   2,518$   2,650$   2,789$   2,936$    xx COMMUNICATIONS TECH 2,213$    2,329$    2,452$   2,581$   2,717$   2,860$   3,010$    xx EVIDENCE TECHNICIAN 2,955$    3,110$    3,274$   3,446$   3,627$   3,818$   4,019$    xx POLICE OFFICER 2,669$    2,809$    2,957$    3,113$    3,277$    3,449$    3,631$    3,822$    4,023$     JANUARY 2018     Title  Biweekly  Step 1   Biweekly  Step 2  Biweekly  Step 3  Biweekly  Step 4  Biweekly  Step 5  Biweekly  Step 6   Biweekly  Step 7   Biweekly  Step 8  Biweekly  Step 9  POLICE RECORDS CLERK I 1,693$    1,782$    1,876$   1,975$   2,079$   2,188$   2,303$    xx POLICE RECORDS CLERK II 1,876$    1,975$    2,079$   2,188$   2,303$   2,424$   2,552$    xx POLICE CADET 2,085$    2,195$    2,311$   2,433$   2,561$   2,696$   2,838$    xx POLICE FIELD SERV TECH 2,202$    2,318$    2,440$   2,568$   2,703$   2,845$   2,995$    xx PROPERTY & EVIDENCE CLERK 2,202$    2,318$    2,440$   2,568$   2,703$   2,845$   2,995$    xx COMMUNICATIONS TECH 2,256$    2,375$    2,500$   2,632$   2,771$   2,917$   3,070$    xx EVIDENCE TECHNICIAN 3,012$    3,171$    3,338$   3,514$   3,699$   3,894$   4,099$    xx POLICE OFFICER 2,722$    2,865$    3,016$    3,175$    3,342$    3,518$    3,703$    3,898$    4,103$     Summary of Changes: 2% COLA all classifications 15.b Packet Pg. 535 Attachment: b - EXHIBIT A - SLOPOA MOA 2016-18 (1304 : POA MOA) RESOLUTION NO . 10248 (2011 Series ) A RESOLUTION OF THE CITY OF SAN LUIS OBISPO MODIFYING IT S COMPENSATION PHILOSOPHY SUPERSEDING PREVIOU S RESOLUTIONS IN CONFLIC T WHEREAS,the City of San Luis Obispo strives to provide excellent service to th e community at all times, and supports this standard by promoting organizational values includin g customer service, productivity, accountability, innovation, initiative, stewardship, and ethics ; an d WHEREAS,to achieve our service standards, the City must attract and retain wel l qualified employees who exemplify our organizational values ; an d WHEREAS,fostering an environment attractive to such employees depends upon man y factors, including a competitive compensation program . NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s Obispo that the City's compensation philosophy is adopted as follows : SECTION 1 .The City is committed to providing competitive compensation as part o f an overall strategy of attracting and retaining well qualified employees who exemplify ou r organizational values . SECTION 2 . The City will consider total compensation, including but not limited to , salary, health, retirement, and time off benefits . SECTION 3 .In evaluating competitive compensation, the City considers : A.Financial sustainability including the City's financial condition as reflecte d throughout the financial forecast, competing service priorities, maintenance needs, capita l improvement and other asset requirements, fund reserve levels, and revenue projections prior t o implementing changes in compensation . B.Community acceptability since taxpayers and ratepayers ultimately fund al l employee compensation . C.The "relevant labor market"that may vary depending upon classification and i s primarily defined by the geographic region (local, state-wide, or national) and key market s (municipal, other government agencies, private sector) where labor talent is found, recruite d from, and/or lost. When the relevant labor market is defined as "local"; local private sector compensation data wil l be considered along with local public sector compensation (municipal and other governmen t agencies . When the relevant labor market is statewide or national, the City will conside r compensation date for public sector agencies (municipal and other government) with severa l R 10248 15.c Packet Pg. 536 Attachment: c - Compensation Philosophy (1304 : POA MOA) Resolution No . 10248 (2011 Series ) Page 2 comparable demographic data points including but not limited to population, median home price , median household income, median age, median education level, services provided, an d unemployment rate . Quality of life should also be considered when selecting comparable municipal and other government agencies . D."Internal relationships"referring to the relative value of classifications to on e another as determined by the City . Classifications performing comparable duties, wit h comparable responsibilities, requiring a similar level of skill, knowledge, ability, and judgment , will be valued similarly in the City's compensation structures . E.Other relevant factors may include unforeseen economic changes, natura l disasters, states of emergency, changes in City services, and changes in regulatory or lega l requirements . SECTION 4 .At least every five years, the City will evaluate its compensation structure , programs, and policies to assess market competitiveness, effectiveness, and compliance with Stat e Law . Adjustments to the compensation structure may be made as a result of this periodi c evaluation and will be done through the collective bargaining process, if applicable, or othe r appropriate Council-management processes . Upon motion of Council Member Carter, seconded by Council Member Carpenter, and o n the following vote : AYES : Council Members Carpenter, Carter and Smith, and Mayor Mar x NOES : Vice Mayor Ashbaug h ABSENT : Non e The foregoing resolution was adopted on March 15, 2011 . ATTEST : Elaina Can o City Clerk APPROVED AS TO FORM : 15.c Packet Pg. 537 Attachment: c - Compensation Philosophy (1304 : POA MOA) 15.d Packet Pg. 538 Attachment: d - Fiscal Responsibility Philosophy (1304 : POA MOA) 15.d Packet Pg. 539 Attachment: d - Fiscal Responsibility Philosophy (1304 : POA MOA) Page intentionally left blank.