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HomeMy WebLinkAbout12-13-2016 Agenda Packet pagenos Tuesday, December 13, 2016 4:00 PM REGULAR MEETING Council Hearing Room 990 Palm Street San Luis Obispo Page 1 CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Aaron Gomez, Andy Pease, Dan Rivoire, and Mayor Heidi Harmon PUBLIC COMMENT ON CLOSED SESSION ITEMS CLOSED SESSION 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 B. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Paragraph (1) of subdivision (d) of Government Code § 54956.9 Name of case: San Luis Obispo Property and Business Owners Association, Stephen and Janine Barasch, The Barasch Revocable Family Trust, Matthew and Jean Kokkonen, and The Kokkonen Family Trust vs. City of San Luis Obispo; San Luis Obispo County Superior Court Case No. 16CV-0493 RECESS TO THE REGULAR CITY COUNCIL MEETING OF DECEMBER 13, 2016 San Luis Obispo City Council Agenda December 13, 2016 Page 2 6:00 PM REGULAR MEETING Council Chamber 990 Palm Street CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Aaron Gomez, Andy Pease, Dan Rivoire, and Mayor Heidi Harmon PLEDGE OF ALLEGIANCE: Council Member Carlyn Christianson CITY ATTORNEY REPORT ON CLOSED SESSION APPOINTMENTS 1. APPOINTMENT TO THE BICYCLE ADVISORY COMMITTEE (BAC) AND TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) (GALLAGHER / GOODWIN – 5 MINUTES) Recommendation In accordance with the recommendations of the Council Subcommittees: 1. Confirm the appointment of Jonathan Roberts to the Bicycle Advisory Committee to complete an unexpired term through March 31, 2020; and 2. Confirm the appointment of Amy Swink to the Tourism Business Improvement District to complete an unexpired term through March 31, 2017. 2. APPOINTMENT TO THE ZONE 9 ADVISORY COMMITTEE (GALLAGHER / GOODWIN – 5 MINUTES) Recommendation Appoint Matt Horn, City Engineer, to serve as the staff representative on the Zone 9 Advisory Committee, effective December 13, 2016, for a term to expire on December 31, 2018. San Luis Obispo City Council Agenda December 13, 2016 Page 3 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. 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. 3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Recommendation Waive reading of all resolutions and ordinances as appropriate. 4. MINUTES OF OCTOBER 4, 2016 REGULAR AND JOINT CITY COUNCIL AND PLANNING COMMISSION MEETING AND OCTOBER 18, 2016 CITY COUNCIL MEETING (GALLAGHER) Recommendation Approve the Minutes of the Regular and Joint City Council and Planning Commission meeting of October 4, 2016 and Regular City Council meeting of October 18, 2016. 5. APPROVAL OF THE FINAL MAP FOR TRACT 3066-1, 3761 ORCUTT ROAD (SBDV-0067-2014) (CODRON / DOSTALEK) Recommendation Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Final Map for Tract 3066-Phase 1 (3761 Orcutt Road, SBDV-0067-2014).” San Luis Obispo City Council Agenda December 13, 2016 Page 4 6. BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT OF INTEREST CODE (GALLAGHER / PRICE) Recommendation 1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s Conflict of Interest Code”; and 2. Approve a Procedure for Assessing and Waiving Late Fines for Statements of Economic Interest. 7. SCHEDULE OF CITY COUNCIL MEETINGS FOR 2017 (GALLAGHER) Recommendation 1. Cancel the Regular City Council meetings of August 1 and December 19, 2017; and 2. Reschedule the Regular City Council meeting of July 4 to July 5, 2017. 8. LEASE AGREEMENT WITH THE COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO FOR THE OPERATION OF THE PRADO DAY CENTER (CODRON / OROZCO) Recommendation 1. Approve a lease agreement between the City of San Luis Obispo and the Community Action Partnership of San Luis Obispo (CAPSLO) through December 31, 2017 for use of the Prado Day Center; and 2. Authorize City Manager to approve any monthly lease extensions after December 31, 2017. 9. AUTHORIZE THE CITY MANAGER TO ENTER INTO A SOLE SOURCE CONTRACT WITH THE CENTRE FOR ORGANIZATION EFFECTIVENESS (COE) FOR EMPLOYEE AND LEADERSHIP DEVELOPMENT PROGRAM (IRONS / ROLTGEN) Recommendation 1. Authorize the issuance of a purchase order to the COE in the amount of $125,000; and 2. Authorize the City Manager to execute a sole source agreement with the COE not to exceed $125,000 for Fiscal Year 2016-17 to continue a comprehensive employee and leadership development and core competency program for the City of San Luis Obispo. San Luis Obispo City Council Agenda December 13, 2016 Page 5 10. AUTHORIZE THE CITY MANAGER TO ENTER INTO A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (CJPIA) TO CONTRACT WITH DISABILITY ACCESS CONSULTANTS (DAC) TO CONDUCT AMERICANS WITH DISABILITIES ACT COMPLIANCE WORK (IRONS) Recommendation 1. Authorize the issuance of a purchase order to the CJPIA in the amount of $250,000; and 2. Authorize the City Manager to enter into a MOU with the CJPIA not to exceed $250,000 for fiscal years 2016-17 and 2017-18 to have DAC conduct Americans with Disabilities Act (ADA) compliance work. 11. ORDINANCE ADOPTION – AMENDMENT TO SECTION 13.07.030 OF THE SAN LUIS OBISPO MUNICIPAL CODE REGARDING RESTRICTIONS ON OUTDOOR IRRIGATION OF PUBLIC FACILITY TURF WITH POTABLE WATER (GRIGSBY / MATTINGLY / STANWYCK / HORN) Recommendation Adopt Ordinance No. 1631 (2016 Series) entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Section 13.07.030 of the San Luis Obispo Municipal Code regarding restrictions on outdoor irrigation of public facility turf with potable water.” 12. RESOLUTION EXTENDING THE DELEGATION OF INVESTMENT AUTHORITY TO THE CITY TREASURER THROUGH THE 2016-17 FISCAL YEAR (BRADFORD / PARDO) Recommendation Adopt a Resolution entitled “A Resolution of the City Council of the city of San Luis Obispo, California extending the delegation of Investment Authority to the City Treasurer through the 2016-17 Fiscal Year.” 13. ADOPTION OF ADMINISTRATIVE REVIEW BOARD BYLAWS (DIETRICK / WHITE) Recommendation As recommended by the Administrative Review Board, adopt the inaugural Administrative Review Board Bylaws. San Luis Obispo City Council Agenda December 13, 2016 Page 6 14. SETTLEMENT AGREEMENT BETWEEN PACIFIC GAS AND ELECTRIC COMPANY RELATED TO DIABLO POWER PLANT CLOSURE JOINT PROPOSAL (LICHTIG / DIETRICK / JOHNSON) Recommendation Receive and file a settlement agreement between Pacific Gas and Electric Company (PG&E), the County of San Luis Obispo, Coalition of Cities (City of Arroyo Grande, City of Atascadero, City of Morro Bay, City of Paso Robles, City of Pismo Beach, and City of San Luis Obispo), San Luis Coastal Unified School District, Friends of The Earth, Natural Resources Defense Council, Environment California, International Brotherhood of Electrical Workers Local 1245, Coalition of California Utility Employees, and Alliance for Nuclear Responsibility. BUSINESS ITEMS 15. CONSIDERATION OF SETTLEMENT OF PUBLIC EMPLOYMENT RELATIONS BOARD (PERB) CASE (IRONS / DIETRICK – 30 MINUTES) Recommendation 1. Approve negotiated settlement of the pending PERB case between San Luis Obispo Police Officers Association (SLOPOA) and the City and adopt a resolution amending Resolution 6620 to remove the SLOPOA from application of the existing dispute resolution process and add a new section governing the process for resolution of disputes/impasse between the City and the SLOPOA; and 2. The finalized report will be issued under a separate cover and linked here when available. 16. WATER RESOURCE RECOVERY FACILITY PROJECT - FUNDING RESOLUTIONS (MATTINGLY / HIX – 30 MINUTES) Recommendation 1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the reimbursement to the State Water Resources Control Board for the financing of the Water Resource Recovery Facility upgrade,” and authorize the Utilities Director to sign and file the financial assistance application for the Water Resource Recovery Facility project; and 2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, pledging sewer fund revenues to the State Water Resources Control Board for the financing of the Water Resource Recovery Facility upgrade”; and San Luis Obispo City Council Agenda December 13, 2016 Page 7 3. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, seeking reimbursement from the State Water Resources Control Board for certain advanced moneys related to the construction of the Water Resource Recovery Facility upgrade.” 17. 2017-19 FINANCIAL PLAN PROCESS, ECONOMIC OUTLOOK AND CONSIDERATION OF PROPOSED CHANGES TO THE CITY’S BUDGET POLICIES (BRADFORD – 60 MINUTES) Recommendation 1. Review and approve the 2017-19 Financial Plan Goal Setting Process; and 2. Review and discuss the results of the Economic Outlook for the 2017-19 Financial Plan development; and 3. Review and approve proposed changes and direction regarding the City’s Budget and Fiscal Policies. 18. 2016 WATER RESOURCES STATUS REPORT (MATTINGLY / FLOYD / METZ / BOERMAN – 30 MINUTES) Recommendation Receive and file the 2016 Water Resources Status Report. 19. ADOPTION OF THE CITY OF SAN LUIS OBISPO’S PUBLIC ART MASTER PLAN (STANWYCK / MUDGETT - 30 MINUTES) Recommendation As recommended by the Parks and Recreation Commission (PRC), adopt the City of San Luis Obispo’s Public Art Master Plan. COUNCIL LIAISON REPORTS (Not to exceed 15 minutes) Council Members report on conferences or other City activities. Time limit—3 minutes each. San Luis Obispo City Council Agenda December 13, 2016 Page 8 COUNCIL COMMUNICATIONS (Not to exceed 15 minutes) At this time, any Council Member or the City M anager may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURNMENT The next Regular City Council Meeting is scheduled for Tuesday, January 3, 2017 at 4:00 p.m. and 6:00 p.m., respectively, in the Council Chamber, 990 Palm Street, San Luis Obispo, California. LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. 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: 12/13/2016 FROM: Carrie Gallagher, City Clerk Prepared By: Heather Goodwin, Deputy City Clerk SUBJECT: APPOINTMENT TO THE BICYCLE ADVISORY COMMITTEE (BAC) AND TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) RECOMMENDATION In accordance with the recommendations of the Council Subcommittees: 1. Confirm the appointment of Jonathan Roberts to the Bicycle Advisory Committee to complete an unexpired term through March 31, 2020; and 2. Confirm the appointment of Amy Swink to the Tourism Business Improvement District to complete an unexpired term through March 31, 2017. DISCUSSION Bicycle Advisory Committee (Subcommittee Members Rivoire and Ashbaugh) Due to the resignation of Randol White, effective October 3, 2016, there was an unscheduled vacancy on the Bicycle Advisory Committee. Mr. White’s term would have expired on March 31, 2020. The Council Liaison Subcommittee recommends the appointment of Jonathan Roberts to the Bicycle Advisory Committee, effective December 13, 2016, to a term expiring on March 31, 2020. Tourism Business Improvement District (Subcommittee Members Carpenter and Rivoire) Due to the resignation of Kimberly Walker, effective September 2, 2016, there was an unscheduled vacancy on the Tourism Business Improvement District. Ms. Walker’s term would have expired on March 31, 2017. The Council Liaison Subcommittee recommends the appointment of Amy Swink to the Tourism Business Improvement District, effective December 13, 2016, to a term expiring on March 31, 2017. AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE A hard copy of the Advisory Body applications has been provided to the City Council and is available for public review in the City Clerk’s office. 1 Packet Pg. 9 Page intentionally left blank. Meeting Date: 12/13/2016 FROM: Carrie Gallagher, City Clerk Prepared By: Heather Goodwin, Deputy City Clerk SUBJECT: APPOINTMENT TO THE ZONE 9 ADVISORY COMMITTEE RECOMMENDATION Appoint Matt Horn, City Engineer, to serve as the staff representative on the Zone 9 Advisory Committee, effective December 13, 2016, for a term to expire on December 31, 2018. DISCUSSION Background Per the Zone 9 Bylaws (Attachment A), the City’s membership on the Zone 9 Advisory Committee shall consist of three members and three alternates as recommended by the City Council and confirmed by the Board of Supervisors. The City shall also recommend an alternate for each member to serve in their absence. The current City membership roster is as follows: Name Membership Appointment Term Expiration John Ashbaugh Council Member 01/05/2016 12/31/2016 Carlyn Christianson Alternate Council Member 01/05/2016 12/31/2016 Christine Mulholland Public Member 12/02/2014 12/31/2018 Dave Romero Alternate Public Member 03/17/2015 12/31/2018 Vacant Staff Member 12/31/2018 Manuel Guzman Alternate Staff Member 12/02/2014 12/31/2018 Due to a recent retirement for the staff member representative, staff is recommending that the City Council take action to appoint Matt Horn, City Engineer as the staff representative, effective December 13, 2016, to a term expiring on December 31, 2018. At the January 3, 2017 City Council meeting, the City Council will be making appointments to the City’s Council Liaison Subcommittees for calendar year 2017, including the Zone 9 Advisory Committee. At that meeting, the City Council will appoint the Zone 9 Council Member representatives. Attachments: a - Zone 9 Bylaws - March 1, 2011 2 Packet Pg. 10 Attachment 1 2.a Packet Pg. 11 Attachment: a - Zone 9 Bylaws - March 1, 2011 (1519 : Zone 9 Appointment) Attachment 1 2.a Packet Pg. 12 Attachment: a - Zone 9 Bylaws - March 1, 2011 (1519 : Zone 9 Appointment) Attachment 1 2.a Packet Pg. 13 Attachment: a - Zone 9 Bylaws - March 1, 2011 (1519 : Zone 9 Appointment) Attachment 1 2.a Packet Pg. 14 Attachment: a - Zone 9 Bylaws - March 1, 2011 (1519 : Zone 9 Appointment) Page intentionally left blank. San Luis Obispo Page 1 Tuesday, October 4, 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, October 4, 2016 at 4:30 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 City Staff Present: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; Derek Johnson, Assistant City Manager; and Carrie Gallagher, City Clerk; were present at Roll Call. PUBLIC COMMENT ON CLOSED SESSION ITEMS Stewart Jenkins spoke regarding the Rental Housing Inspection Ordinance. ---End of Public Comment--- CLOSED SESSION A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (4) of subdivision (d) of Government Code § 54956.9: No. of potential cases: One. B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code § 54956.9: No. of potential cases: One. A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. These facts and circumstances that might result in litigation, the local agency believes are not yet known to a potential plaintiff or plaintiffs. (Government Code § 54956.9 (e)(1)) 4.a Packet Pg. 15 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 4, 2016 Page 2 C. 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, Garret Olson, Rick Bolanos Represented Employee Organization: International Association of Firefighters Local 3523 D. 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 E. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: One case. RECESSED AT 5:30 P.M. TO REGULAR MEETING OF OCTOBER 4, 2016 TO BEGIN AT 6:00 P.M. 4.a Packet Pg. 16 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 4, 2016 Page 3 CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, October 4, 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 Members Absent: None City Staff Present: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; Derek Johnson, Assistant City Manager; and Carrie Gallagher, City Clerk; were present at Roll Call. PLEDGE OF ALLEGIANCE Vice Mayor Dan Carpenter led the Pledge of Allegiance. CITY ATTORNEY REPORT ON CLOSED SESSION City Attorney Dietrick stated that there was no reportable action for Closed Session Items A through E. INTRODUCTIONS 1. SHAWNA SCOTT - ASSOCIATE PLANNER AND STEVEN SHEATS - CODE ENFORCEMENT OFFICER Community Development Director Codron introduced Shawna Scott as a new Associate Planner and Steven Sheats as a new Code Enforcement Officer. PRESENTATIONS 2. PRESENTATION BY PETER WILLIAMSON REPRESENTING SAN LUIS OBISPO COUNCIL OF GOVERNMENTS (SLOCOG), REGARDING PLEDGE TO MAKE A SMART COMMUTE CHOICE DURING RIDESHARE WEEK, OCTOBER 3-7, 2016 Peter Williamson representing San Luis Obispo Council of Governments (SLOCOG) provided a presentation regarding their pledge to make a smart commute choice during Rideshare Week, October 3-7, 2016. 4.a Packet Pg. 17 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 4, 2016 Page 4 3. PROCLAMATION - DENTAL HYGIENE MONTH Mayor Marx presented a Proclamation to Chantel Arnold, Julie Dodson, Kristina Mankins, Brittany Soto, Maureen Titus and Melanie Water, declaring October as "National Dental Hygiene Month." 4. PROCLAMATION - COMMUNITY PLANNING MONTH Mayor Marx presented a Proclamation to Community Development Director Michael Codron, declaring October as "Community Planning Month." PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Dia Hurd, San Luis Obispo spoke regarding a lack of community outreach and noticing of City Council and Planning Commission agenda items. David Brodie, San Luis Obispo stated that Council regularly ignores Community Design Guideline recommendations provided to them by the different Advisory Bodies. Eric Meyer, San Luis Obispo mentioned Rideshare Week, he noted that electric bikes are extremely popular and are currently not allowed on City busses; he asked that Council reconsider this restriction. Camille Small, San Luis Obispo stated her belief that the Architecture Review Commission’s approval of a lighted flashy marquee sign does not fit the downtown area it is intended for. ---End of Public Comment--- CONSENT AGENDA ACTION: MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to approve the Consent Calendar Items 5-6. 5. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate. 6. JENNIFER STREET SEWER LINE REPLACEMENT PROJECT AWARD, SPECIFICATION NO. 91185 CARRIED 5-0, to: 1. Award a contract to Specialty Construction, Inc. in the amount of $1,493,870 for the Jennifer Street Sewer Line Replacement Project, Specification No. 91185; and 2. Approve a transfer of $756,870 from Sewer Fund working capital to the project account. RECESSED AT 6:29 PM TO THE JOINT CITY COUNCIL AND PLANNING COMMISSION MEETING. 4.a Packet Pg. 18 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 4, 2016 Page 5 JOINT CITY COUNCIL AND PLANNING COMMISSION MEETING CALL TO ORDER: Mayor Marx ROLL CALL: Council Members John Ashbaugh, Carlyn Christianson, Dan Rivoire, Vice Mayor Dan Carpenter, and Mayor Jan Marx Planning Commissioners Hemalata Dandekar, Daniel Knight, John Larson, and Chairperson Charles Stevenson ABSENT: Planning Commissioner Ronald Malak and Vice Chairperson John Fowler STUDY SESSION 7. DOWNTOWN CONCEPT PLAN UPDATE Community Development Director Codron and Associate Planner Gershow reviewed the contents of the report. Loreli Cappel of Michael Baker International, provided the PowerPoint presentation and responded to City Council and Planning Commission inquiries. Public Comment: Ken Schwartz, San Luis Obispo stated his belief that the voice of the people is buried and that the presentation provided tonight was not easily understood. David Brodie, San Luis Obispo speaking on behalf of Save our Downtown noted findings of an online survey and at recent workshops. Anne Wyatt, representing Bike SLO County noted her appreciation of the current plan, thanked the Council for their work and stated that Bike SLO County members feel “heard” by the Council. Eric Meyer, San Luis Obispo County Planning Commissioner speaking as a private citizen requested careful consideration for future planning for the last 20% of available building space in the City. Karen Kile, San Luis Obispo, Executive Director of the San Luis Obispo Museum of Art spoke on change coming to the area and asked Council to listen to the voice of the people in regards to comments provided in recent workshops. Keith Gurnee, San Luis Obispo noted providing feedback to Council in writing, he stated liking many aspects of the proposed plan however added that he has many concerns. Kyle Wiens, San Luis Obispo resident and local business owner speaking on behalf of his employees noted the need for a parking structure on the North side of town. Paul Rys, San Luis Obispo spoke regarding the need to provide proper noticing to residents affected by proposed projects; he rejects the idea of channeling traffic. ---End of Public Comment--- 4.a Packet Pg. 19 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 4, 2016 Page 6 By consensus, the City Council and Planning Commission received the report and provided input to staff regarding the working draft of the Downtown Concept Plan and accompanying mobility diagrams. Mayor Marx called for a recess at 9:03 p.m. The City Council and Planning Commission returned to the dais at 9:18 p.m. 8. MISSION PLAZA ASSESSMENT AND MASTER PLAN DEVELOPMENT Senior Civil Engineer Guzman reviewed the contents of the report. City consultant’s Debbie Rudd and Leif McKay with RRM Design provided the PowerPoint presentation and responded to City Council and Planning Commission inquiries. Public Comment: Ken Schwartz, San Luis Obispo stated his confusion of the process used by Council; noted that he asked that the progress be tied together with landscape in order to breed artistic efforts; wants an open space free of anything with wheels. David Brodie, San Luis Obispo spoke on behalf of Save Our Downtown; read a proposal that was included in the Council agenda packet; voiced the importance of the creek and asked for Council to not rush into a decision. Dominic Tartaglia, San Luis Obispo Executive Director of the Downtown District spoke regarding the significance of the amphitheater and its uses, he feels the Council needs to consider the implication these plans have on the future of the City. Keith Gurnee, San Luis Obispo felt the consultants provided a good range of choices for the public, he noted his involvement in the public input process. ---End of Public Comment--- By consensus, the City Council and Planning Commission received the report and provided input to staff to proceed with the development of a preferred plan using elements from Concept Plans A and B and other sources. MAYOR MARX ADJOURNED THE JOINT CITY COUNCIL AND PLANING COMMISSION MEETING AT 10:55 P.M. RECONVENE AT 10:56 P.M. TO THE REGULAR CITY COUNCIL MEETING. ACTION: MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER RIVOIRE, CARRIED 5-0 by consensus, to continue the meeting past 11:00 p.m. 4.a Packet Pg. 20 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 4, 2016 Page 7 STUDY SESSION 9. WASTEWATER COLLECTION SYSTEM CAPACITY CONSTRAINTS Utilities Director Mattingly and Utilities Wastewater Deputy Director Hix provided a PowerPoint presentation and responded to City Council inquiries. Public Comment: Paul Rys, San Luis Obispo believes in preventative maintenance, spoke on clogged sewer lines. Todd Katz, San Luis Obispo noted that much clarity is needed regarding this proposal; he mentioned additional services available to deal with roots intruding into sewer lines and believes that residents will not obtain permits if required. ---End of Public Comments--- By consensus, the City Council received and filed the Wastewater Collection System Capacity Constraints Report. COUNCIL LIAISON REPORTS Written Council Liaison Reports were received from Council Member Christianson and Mayor Marx. COUNCIL COMMUNICATIONS None ADJOURNMENT The meeting was adjourned at 11:17 p.m. The next Regular City Council Meeting is scheduled for Tuesday, October 18, 2016 at 4:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. __________________________ Carrie Gallagher City Clerk APPROVED BY COUNCIL: XX/XX/2016 4.a Packet Pg. 21 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo Page 1 Tuesday, October 18, 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, October 18, 2016 at 4:00 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 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 ITEMS 1. 2015-16 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT Assistant City Manager Johnson and Tourism Manager Cano provided an in-depth staff report with the use of a PowerPoint presentation and responded to Council inquiries. ACTION: MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to: 1. Receive and approve the Tourism Business Improvement District (TBID) Board’s 2015- 16 annual report; and 2. Adopt Resolution No. 10745 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, declaring its intention to continue the San Luis Obispo Tourism Business Improvement District, to continue the basis for and to levy the assessment for the district, and to set a date for the public hearing on the district and the assessment for 2016-17” at the same rate as in the fiscal year 2015-16. 4.a Packet Pg. 22 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 2 2. CLIMATE ACTION PLAN IMPLEMENTATION UPDATE Community Development Director Codron and Community Development Deputy Director Fowler provided an in-depth staff report with the use of a PowerPoint presentation and responded to Council inquiries. Public Comments: Lea Brooks, Bike SLO County, expressed support for the transportation demand program and urged the City Council to acknowledge implementation of the Bicycle Way-Finding Signs. David Brodie, San Luis Obispo resident, reported several statistics related to the ratio of unsustainable growth and the difficulties of implementation for new developments, urged that all developers need to consider the Street Trees Master List during the planning process. Charlene Rosales, Chamber of Commerce, expressed support to approve the Climate Action Plan; urged that staff and the community to work together to produce annual progress reports to track achievements related to the established goals. ---End of Public Comment--- By consensus, the City Council directed staff to: 1. Receive a status update report on the implementation of the 2012 City of San Luis Obispo Climate Action Plan; and 2. Proceed with an analysis of the feasibility of implementing the recommendations identified in the 2016 Climate Action Plan Progress Report and the City of San Luis Obispo Energy Baseline Report, and return to the City Council with recommended implementation strategies to further the City’s efforts to address climate change and to mitigate GHG emissions. 3. 2015 TRAFFIC SAFETY REPORT AND RESOLUTION ENDORSING VISION ZERO Public Works Deputy Director Bochum provided information on the 2015 Annual Traffic Safety Report. Transportation Planner/Engineer I Schwartz spoke about Overall Citywide Traffic Collision Trends. Focus on Citywide Ped & Bike Collision trends. Spoke about the importance for the Primary Collision Factors. Public Comments: Jeff Brubaker, San Luis Obispo Council of Governments, spoke about prior goals related to safety and security and expressed support to adoption of the Resolution. Lea Brooks, Bike SLO County, expressed support for the adoption of the Resolution and urged that a transportation diversion program be implemented to help educate the public in lieu of fines. 4.a Packet Pg. 23 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 3 ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY COUNCIL MEMBER ASHBAUGH, CARRIED 5-0, to 1. Receive the 2015 Traffic Safety Report and approve the recommended traffic safety measures; and 2. Adopt Resolution No. 10746 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, endorsing the goal of Vision Zero for the City to strive to achieve zero traffic deaths and serious injuries on City streets by 2030.” RECESS TO REGULAR MEETING OF OCTOBER 18, 2016 TO BEGIN AT 6:00 P.M. 4.a Packet Pg. 24 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 4 CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, October 18, 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 Members Absent: None City Staff Present: Katie Lichtig, City Manager; Christine Dietrick, City Attorney; Derek Johnson, Assistant City Manager; and Carrie Gallagher, 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 Carlyn Christianson led the pledge of allegiance. INTRODUCTIONS 4. CASSIA COCINA - PERMIT SERVICES COORDINATOR AND MARK SADOWSKI - BUILDING AND SAFETY SUPERVISOR Community Development Director Codron introduced Cassia Cocina as the new Permit Services Coordinator and Mark Sadowski as the new Building and Safety Supervisor. PRESENTATIONS 5. PRESENTATION - LEADERSHIP SLO CLASS XXIV WATERWISE DEMONSTRATION GARDEN Assistant City Manager Johnson representing Leadership SLO Class XXIV, provided a presentation regarding Waterwise Demonstration Garden. APPOINTMENTS 6. APPOINTMENT TO THE ARCHITECTURAL REVIEW COMMISSION (ARC), HUMAN RELATIONS COMMISSION (HRC), MASS TRANSPORTATION COMMITTEE (MTC) Assistant City Clerk Maier presented the contents of the report. 4.a Packet Pg. 25 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 5 ACTION: MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to: 1. Confirm the appointment of Brian Rolph to the Architectural Review Commission to complete an unexpired term through March 31, 2019; and 2. Confirm the appointment of Nancy Welts to the Human Relations Commission to complete an unexpired term through March 31, 2020. 3. Confirm the appointment of Justin Frentzel to the Mass Transportation Committee, as the ASI student representative to complete an unexpired term through March 31, 2019. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Mary Mitchell, San Luis Obispo resident, expressed concerns for large commercial developments in her neighborhood. Vanessa Rizzo, San Luis Obispo resident and Teach Elementary School parent expressed concern for a lack of school zone signage, street markings and drop off zones on Slack Street. Shawn McNabb, San Luis Obispo resident and Teach Elementary School parent, provided a video presentation to show dangerous traffic conditions at the school. Michael Cohen, San Luis Obispo resident, requested Council consider implementing an automobile idle free zone ordinance. David Brodie, San Luis Obispo resident, voiced concern for traffic problems near and around proposed development projects; he made a request for committee members to receive organized training in the fields in which they are making judgements on. Bob Shanbrom, San Luis Obispo resident, voiced concern for drought related issues. ---End of Public Comment--- Staff responded to the publics traffic concerns and Council Member Ashbaugh requested staff provide a follow up memo outlining actions being taken to alleviate traffic concerns. At the request of City Manager Lichtig, staff provided a status update on two residential projects. CONSENT AGENDA ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY COUNCIL MEMBER ASHBAUGH, CARRIED 5-0, to approve the Consent Calendar Items 7-19. Council Member Ashbaugh commented favorably on Item #14, the Waddell Ranch Open Space Acquisition. 7. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate. 4.a Packet Pg. 26 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 6 8. MINUTES OF SEPTEMBER 6 AND SEPTEMBER 8, 2016 CARRIED 5-0, to approve the Minutes of the City Council meetings of September 6 and September 8, 2016. 9. GRANT FUNDED CALLE JOAQUIN PARK & RIDE, SPECIFICATION NO. 91288 REQUEST FOR AUTHORIZATION TO ADVERTISE CARRIED 5-0, to: 1. Approve the plans and specifications for the grant funded Calle Joaquin Park & Ride Lot, Specification No. 91288; and 2. Authorize staff to advertise for bids, and authorize the City Manager to award the contract if the lowest responsible bid is within the Engineer’s Estimate of $310,000. 10. CONSIDERATION OF THE HUMAN RELATION COMMISSION’S (HRC) RECOMMENDED PRIORITIES FOR THE 2017 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND GRANTS-IN-AID (GIA) PROGRAMS CARRIED 5-0, to approve the Community Development Block Grant and Grants-In-Aid funding priorities for 2017. 11. BANKING SERVICES CONTRACT AWARD CARRIED 5-0, to award the banking services contract to JP Morgan and authorize the City Treasurer to execute the agreement. 12. AUTHORIZE FUNDS FROM THE LAW ENFORCEMENT GRANT FUND/TRAFFIC IMPOUND ACCOUNT TO PURCHASE EQUIPMENT RELATED TO TRAFFIC SAFETY CARRIED 5-0, to appropriate $9,470 from available fund balance in the Law Enforcement Grant Fund/Traffic Impound Account to purchase Lidar units and alcohol detection devices for use by the Police Department’s Traffic Safety Division. 13. CONTRACT AWARD FOR BUSINESS LICENSE COMPLIANCE SERVICES CARRIED 5-0, to award contract for Business License Compliance Services to HDL Software, LLC and authorize the City Manager to execute the contract. 14. WADDELL RANCH OPEN SPACE ACQUISITION CARRIED 5-0, to adopt Resolution No. 10747 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing entering into a grant agreement with the California Wildlife Conservation Board, entering into a purchase and sale agreement with the Trust for Public Land, and authorizing the acquisition of the Waddell Ranch Property identified as assessor parcel no. 076-051-011 totaling approximately 154 acres in unincorporated San Luis Obispo County.” 4.a Packet Pg. 27 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 7 15. DONATION ACCEPTANCE - POLICE COMMAND TRAILER CARRIED 5-0, to authorize the Police Department to accept the donation of a Command Trailer from the Arroyo Grande Police Department. This trailer would be used by the Police Department, Fire Department and Regional SWAT Team for emergency operations within the City of San Luis Obispo. 16. HIGHWAY BRIDGE PROGRAM GRANT APPLICATIONS CARRIED 5-0, to adopt Resolution No. 10748 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing three applications to the California Department of Transportation for bridge program funding for the Madonna Road, Chorro, and Nipomo/Peach Bridges.” 17. ALLOCATE UP TO $300,000 FROM THE AFFORDABLE HOUSING FUND FOR THE PURCHASE AND RESALE OF AN AFFORDABLE HOUSING UNIT LOCATED ON 867 HUMBERT AVENUE, WITHIN THE MOYLAN TERRACE DEVELOPMENT PROJECT CARRIED 5-0, to: 1. Approve up to $300,000 from the Affordable Housing Fund to purchase, and resell, an affordable housing unit located at 867 Humbert, and appropriate funds accordingly; and 2. Authorize the City Manager to execute documents as required to implement the purchase, and eventual sale of 867 Humbert Ave. 18. SAN LUIS RANCH DEVELOPMENT - ECONOMIC ANALYSIS CARRIED 5-0, to authorize the City Manager to execute a contract with Economic Planning Systems (EPS) to assist the City with the financial analysis and related tasks for a proposed development agreement for the San Luis Ranch Project. 19. REVIEW OF THE PUBLIC ART DESIGNS AND LOCATIONS PROPOSED FOR THE 2016 UTILITY BOX ART PROJECT TO PAINT CITY-OWNED UTILITY BOXES CARRIED 5-0, to approve the proposed artwork designs and traffic signal box locations for the 2016 Utility Box Art project. 4.a Packet Pg. 28 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 8 PUBLIC HEARING 20. REVIEW OF AN APPEAL OF THE PLANNING COMMISSION’S DECISION TO DENY A NEW FOUR-STORY MIXED-USE PROJECT WITH GROUND FLOOR COMMERCIAL/RETAIL SPACE AND 27 RESIDENTIAL UNITS, INCLUDING A REQUEST FOR A 40% PARKING REDUCTION WITH MECHANICAL PARKING LIFTS. 11% OF THE UNITS IN THE PROJECT WILL BE AFFORDABLE FOR VERY-LOW INCOME HOUSEHOLDS AND AFFORDABLE HOUSING INCENTIVES ARE REQUESTED, INCLUDING A 35% DENSITY BONUS, AND THE CONSTRUCTION OF A 43-FOOT TALL STRUCTURE WHERE 35 FEET IS NORMALLY ALLOWED (22 CHORRO STREET) Council Members Christianson, Rivoire, and Vice Mayor Carpenter, noted their Ex Parte Communications regarding the project. Council Member Ashbaugh and Mayor Marx reported having no Ex Parte Communications. Community Development Director Codron and Associate Planner Cohen provided an in- depth staff report with the use of a PowerPoint presentation and responded to Council inquiries. Applicant Comment: Applicant, Loren Riehl, stated that the project will further the City’s goal of adding housing, with the addition of affordable housing units in an underutilized location; he noted providing the use of bicycles as incentives to residents, the large number of planned bike parking spaces, and the convenient walking proximity to many desirable locations; additionally, he spoke regarding statewide sustainable goals and California AB 744 and the Climate Action Plan at the local level. Mayor Marx opened Public Hearing: The following spoke in favor of the project and urged Council to grant the appeal of the denial by the Planning Commission: Jerry Rioux, Executive Director of the San Luis Obispo County Housing Trust Fund Danny Sullivan, San Luis Obispo resident Blake Hester, San Luis Obispo Resident and Cal Poly student spoke on behalf of himself and Cal Poly students in the audience Myron Amerine, San Luis Obispo resident Kim Bisheff, San Luis Obispo resident Charlene Rosales, San Luis Obispo Chamber of Commerce Thom Jess, San Luis Obispo resident and project Architect Liz Cordoba, San Luis Obispo resident Anne Wyatt, San Luis Obispo resident Steve Delmartini, San Luis Obispo resident Lea Brooks, speaking on behalf of Bike SLO County Farid Shahid, San Luis Obispo resident Martha Miller, San Luis Obispo resident Enrique Ivers, San Luis Obispo resident Alex Hedbany, Arroyo Grande resident 4.a Packet Pg. 29 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 9 Grant Robbins, San Luis Obispo resident The following spoke against the project and urged Council to uphold the denial of the project by the Planning Commission: David Brodie, San Luis Obispo resident Dia Hurd, San Luis Obispo resident Kerry Brown, San Luis Obispo resident Kit Gould, San Luis Obispo resident Odiile Ayral, San Luis Obispo resident Donna Young, San Luis Obispo resident Carolyn Smith, San Luis Obispo resident Kristie Thomas, San Luis Obispo resident Cheryl McLean, San Luis Obispo resident Genevieve Czech, San Luis Obispo resident Dr. Richard J. Krejsa, San Luis Obispo resident Camille Small, San Luis Obispo resident Coraline Robinson, San Luis Obispo resident Sandra Rowley, San Luis Obispo resident representing RQN Elizabeth Nicholson, San Luis Obispo resident Mila Vujovich - LaBarre, San Luis Obispo resident Bob Shanbrom, San Luis Obispo resident Victor Waytek, San Luis Obispo resident ---Mayor Marx closed Public Hearing --- RECESS Mayor Marx called for a recess at 8:05 p.m. The meeting resumed at 8:20 p.m. with all Council Members present. Council Member Ashbaugh motioned to approve the recommendation with proposed amendments to the Resolution; motion died for a lack of a second. ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER RIVOIRE, CARRIED 4-1 (ASHBAUGH NO), to adopt Resolution No. 10749 (2016 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a use permit for a mixed-use project in the Foothill Boulevard special planning area, a 40 percent parking reduction and the use of mechanical parking lifts including a categorical exemption from CEQA and a recommendation of approval of a height exception as an affordable housing incentive as represented in the City Council agenda report and attachments dated October 18, 2016 (22 Chorro, USE-2882-2016).” Mayor Marx directed staff to work with the ARC regarding the proposed rooftop deck design and use in relation to privacy concerns of nearby R1 residents; she added that the use of a sitting area at the corner of Chorro and Foothill is not a good idea and requested it be reviewed, additionally she suggested that incentives be used to encourage residents not exceed the total number of available parking spots with their private vehicles. 4.a Packet Pg. 30 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 10 Council Member Christianson agreed with Mayor Marx’s concerns for privacy related to the rooftop deck and the seating area on Chorro and Foothill. Council Member Rivoire noted he did not agree with making changes to the rooftop deck or seating area at Chorro and Foothill. Council Member Ashbaugh requested the ARC review the proposed project facade to better incorporate into the existing neighborhood and asked for a larger setback between the staircase leading to the second floor and the neighboring R1 home. BUSINESS ITEM 21. MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO FIREFIGHTERS LOCAL 3523 (FIRE) FOR THE PERIOD OF 01/01/2016 – 12/31/2017 Human Resources Director Irons and Human Resources Manager Zocher provided an in- depth staff report with the use of a PowerPoint presentation and responded to Council inquiries. Public Comments: Brett Strickland, San Luis Obispo resident and City Council Candidate noted his support of local Firefighters and believes they should receive a pay raise. ---End of Public Comment --- ACTION: MOTION BY COUNCIL MEMBER ASHBAUGH, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0, to adopt Resolution No. 10750 (2016 Series) 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 Firefighters Local 3523 for the period of January 1, 2016 through December 31, 2017.” LIAISON REPORTS None. COUNCIL COMMUNICATIONS Council Member’s Ashbaugh, Christianson, and Mayor Marx noted their recent attendance at the League of California Cities Conference. ADJOURNMENT The meeting was adjourned at 10:47 p.m. The next Regular City Council Meeting is scheduled for Tuesday, November 1, 2016 at 6:00 p.m., respectively, in the Council Chamber, 990 Palm Street, San Luis Obispo, California. 4.a Packet Pg. 31 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- San Luis Obispo City Council Minutes of October 18, 2016 Page 11 __________________________ Carrie Gallagher City Clerk APPROVED BY COUNCIL: XX/XX/2016 4.a Packet Pg. 32 Attachment: a - Minutes of 10-4-16 Joint CC & PC Meeting and 10-18-16 CC Meeting (1547 : Minutes of 10-4-16 Joint CC & PC Meeting and 10- Meeting Date: 12/13/2016 FROM: Michael Codron, Community Development Director Prepared By: Diane Dostalek, Senior Civil Engineer SUBJECT: APPROVAL OF THE FINAL MAP FOR TRACT 3066-PHASE 1, 3761 ORCUTT ROAD (SBDV-0067-2014) RECOMMENDATION Adopt a resolution approving the Final Map for Tract 3066-Phase 1 located at 3761 Orcutt Road. DISCUSSION Background Tract 3066 (SBDV-0067-2014) is located at 3761 Orcutt Road (Attachment A). This subdivision is commonly known as the Jones subdivision. A vesting tentative map for Tract 3066 was approved by the City Council on May 19, 2015, by Resolution No. 10620 (2015 Series) (Attachment B). The tentative map (Attachment C) approved the creation of three mixed use lots, 14 lots for constructing up to 43 condominium units, two open space lots, nine single family lots for the subdivider (Ambient Communities) to develop, and four or five single family lots for the Jones family to develop dependent on the alignment of Tiburon. The Jones lots are commonly referred to as the “homestead lots.” The tentative map approval included options for a temporary and preferred alignment for Tiburon. The preferred alignment would line up the intersection with existing Tiburon on the east side of Orcutt, but was dependent upon acquisition of off-site right-of-way. The subdivider of Tract 3066 has now acquired the necessary right-of-way for the preferred Tiburon alignment via a lot line adjustment with the adjacent property owner. That acquisition also resulted in the additional property needed to create the fifth single family lot for the Jones family that was discussed in the staff report and included in the conditions of approval for Tract 3066. The subdivider originally stated that Tract 3066 would be developed in a single phase. The reasoning behind this was that the project was not large enough to warrant needing multiple phases and that the required improvements would need to be constructed in a single phase due to economy of scale. However, the detailed design of the interior lots and of the required improvements has taken longer than anticipated and an option the subdivider has with the Jones family to acquire a portion of the property is set to expire. In order to exercise that option, the subdivider has requested that the City approve this first phase of the map solely for financing purposes. This first phase of the map will create two lots – one for Jones and one for Ambient. The Jones lot (Lot A) consists of the portion of land encompassing the homestead lots. The Ambient lot (Lot B) consists of the remaining portion of the property that will eventually be subdivided for the mixed use, condominium, and single family lots. 5 Packet Pg. 33 Approving the Final Map The tentative map has an initial two-year life per Municipal Code Section 16.10.150, so this vesting tentative map has an expiration date of May 19, 2017. The subdivision map act allows for time extensions to be requested by the subdivider and granted by the City. Recording of this first phase of the map will not affect the expiration date of the tentative map because a phased map only extends the time if a certain amount of money (approximately $250,000) is expended by the developer for off-site improvements. No improvements are required with this first phase, since it is for financing purposes only. There are restrictions being placed on the map that no building permits can be issued or further subdivision approved until such time as the requirements, conditions, and mitigation measures of the resolution approving Tentative Tract 3066 are completed or appropriate securities are in place to guarantee their completion. On-site street and public utility easements are being offered with this first phase in case surrounding subdivisions need to utilize those easements to construct their required improvements prior to recordation of the next phase of Tract 3066. The City typically accepts offers of dedication on the map contingent upon completion of the public improvements. However, since there are no public improvements being constructed with this phase, the resolution approving the final map (Attachment D) states that these offers are being rejected without prejudice. Subdivision Map Act Section 66477.2 states that the offers will remain open and can be accepted by the City at a later date without any further action by the subdivider. The City already has a resolution in place (Resolution No. 5370, 1984 Series) that authorizes the Mayor or Vice-Mayor to accept offers of dedication to the City. The resolution approving the Tract 3066-Phase 1 map reaffirms this authorization by stating that the Mayor or Vice-Mayor may accept the offers at a later date. Alternately, any outstanding offers may be terminated when Lots A or B are resubdivided and new offers may be made and accepted at that time. Dedication and reservation of the open space easements required with Tract 3066 will be deferred until the next phase of Tract 3066 because the boundary of those easements may be impacted by the development plans that are currently being prepared by the subdivider. Additional easements for required improvements may be required with the next phase of Tract 3066. The final map for Tract 3066-Phase 1 is ready to be approved and recorded. Pursuant to Section 16.14.080 of the Municipal Code, the Public Works Director has determined that the final map is in substantial compliance with the tentative map and approved modifications thereof. Section 66474.1 of the Subdivision Map Act states that “a Legislative body shall not deny approval of a final or parcel map if it has previously approved a tentative map for the proposed subdivision and if it finds that the final or parcel map is in substantial compliance with the previously approved tentative map.” The approval of a final map is considered a ministerial action. 5 Packet Pg. 34 CONCURRENCES The Public Works Department concurs with the recommended action allowing the phased final map for financing purposes and deferring all the required improvements to the next phase of the subdivision. The Natural Resources Manager concurs with deferring the reservation and dedication of the required open space easements to the next phase of the subdivision. ENVIRONMENTAL REVIEW Approval of the final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no further environmental review is required. FISCAL IMPACT There is no financial impact to the City associated with approving the final map for Tract 3066-Phase 1, since there are no public improvements that will be constructed with this phase. ALTERNATIVES Deny approval of the final map. Denying approval of the final map can apply if findings are made that the requirements or conditions of the tentative map have not been met or performed (Section 66473 of the Subdivision Map Act) or if findings are made that the final map is not in substantial compliance with the previously approved tentative map (Section 66474.1 of the Subdivision Map Act). Because this map is for financing purposes only, the requirements and conditions of the tentative map are being deferred to the next phase and a Notice of Requirements will be recorded concurrently with the Phase 1 final map preventing any development on or subdivision of Lot A or Lot B until the conditions of the tentative map are satisfied. Since the final map is in substantial compliance with the tentative map and all of the conditions of the tentative map are being deferred, Sections 66474.1 and 66473 of the Subdivision Map Act require that City Council approve the map. Therefore, denying approval of the final map is not a recommended alternative unless the required findings are made. Attachments: a - Vicinity Map b - Resolution No. 10620 c - Tentative Map d - Draft Resolution Approving Final Map e - Exhibit 1 to Attachment d 5 Packet Pg. 35 5.a Packet Pg. 36 Attachment: a - Vicinity Map (1525 : Final Map Approval RESOLUTION NO. 10620 (2015 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A VESTING TENTATIVE TRACT MAP NO. 3066 CREATING 33 LOTS FOR PROPERTY LOCATED AT 3765 ORCUTT ROAD TR/ER SBDV- 0067 -2014; TRACT #3066 JONES) WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing on March 25 and April 8th, 2015 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, for the purpose of considering SBDV- 0067 -2014, a vesting tentative tract map subdividing an approximately 11.56 -acre site into 33 lots; and recommended the City Council approve the Vesting Tentative Tract Map; and WHEREAS, the April 8, 2015 Planning Commission hearing was for the purpose of formulating and forwarding recommendations to the City Council of the City of San Luis Obispo regarding the project; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the City Council has reviewed and considered the initial study of environmental impact as prepared by staff; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis Obispo as follows: SECTION 1. CEQA Findings, Mitigation_ Measures and Mitigation Monitoring Program. Based upon all the evidence, the City Council makes the following CEQA findings in support of the Vesting Tentative Map SBDV- 0067 -2014 (Tract No. 3066): The proposed project is consistent with the requirements of the Orcutt Area Specific Plan Final Environmental Impact Report (FEIR) certified and adopted by the City Council on March 2, 2010, and this approval incorporates those FEIR mitigation measures as applicable to VTM #3066, as detailed herein. 2. A supplemental initial study has been prepared for VTM #3066 addressing potential environmental impacts which were not identified or detailed in the FEIR for the Orcutt Area Specific Plan (OASP). The Community Development Director has recommended that the results of that additional analysis be incorporated into a Mitigated Negative Declaration (MND) of environmental impacts, and recommends adoption of additional mitigation measures to those imposed by the FEIR, all of which are incorporated below. R 10620 5.b Packet Pg. 37 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 2 3. All potentially significant effects were analyzed adequately in the referenced FEIR and IS- MND, and reduced to a level of insignificance, provided the following mitigation measures are incorporated into the development project and the mitigation monitoring program: AIR QUALITY MITIGATION Operational Phase Mitigation AQ -1(a) Energy Efficiency. The building energy efficiency rating shall be 10% above what is required by Title 24 requirements for all buildings within the Specific Plan Area. The following energy- conserving techniques shall be incorporated unless the applicant demonstrates their infeasibility to the satisfaction of City Planning and Building Department staff. increase walls and attic insulation beyond Title 24 requirements; orient buildings to maximize natural heating and cooling; plant shade trees along southern exposures of buildings to reduce summer cooling needs; use roof material with a solar reflectance value meeting the Environmental Protection Agency /Department of Energy Star rating; build in energy efficient appliances; use low energy street lighting and traffic signals; use energy efficient interior lighting; use solar water heaters; use double -paned windows; solar panel plumbing; grey water recycling; tank -less water heaters; dedicated hot water line loops. AQ -1(b) Transit. Bus turnouts and shelter improvements with direct pedestrian access shall be installed at all bus stops. AQ -1(c) Shade Trees. All parking lots shall include shade trees within the parking area. There shall be at least one shade tree for every six vehicle parking spaces. AQ -1(d) Telecommuting. All new homes within the Specific Plan area shall be constructed with internal wiring /cabling that allows telecommuting, teleconferencing, and tele- learning to occur simultaneously in at least three locations in each home. AQ -1(e) Pathways. Where feasible, all cul -de -sacs and dead -end streets shall be links by pathways to encourage pedestrian and bicycle travel. AQ -1 Monitoring Program: Compliance with operational phase mitigation measures will be reviewed with the subdivision plans and accompanying architectural review plans and ultimately shown on improvement plans and construction drawings. ConstructionPhaseMiti agtion AQ -3(a) Application of CBACT (Best Available Control Technology for construction related equipment). The following measures shall be implemented to reduce combustion emissions from construction equipment where a project will have an area of disturbance greater than 1 acre. 5.b Packet Pg. 38 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 3 Specific Plan applicants shall submit for review by the Community Development Department and Air Pollution Control District (APCD) staff a grading plan showing the area to be disturbed and a description of construction equipment that will be used and pollution reduction measures that will be implemented. Upon confirmation by the Community Development Department and APCD, appropriate CBACT features shall be applied. The application of these features shall occur prior to Specific Plan construction. Specific Plan applicants shall be required to ensure that all construction equipment and portable engines are properly maintained and tuned according to manufacturer's specifications. Specific Plan applicants shall be required to ensure that off -road and portable diesel powered equipment, including but not limited to bulldozers, graders, cranes, loaders, scrapers, backhoes, generator sets, compressors, auxiliary power units, shall be fueled exclusively with CARB motor vehicle diesel fuel (non -taxed off -road diesel is acceptable). Specific Plan applicants shall be required to install a diesel oxidation catalyst on each of the two pieces of equipment projected to generate the greatest emissions. Installations must be prepared according to manufacturer's specifications. AQ -3(b) Dust Control. The following measures shall be implemented to reduce PM10 emissions during all Specific Plan construction: Reduce the amount of the disturbed area where possible. Use water trucks or sprinkler systems in sufficient quantities to prevent airborne dust from leaving the site. Water shall be applied as soon as possible whenever wind speeds exceed 15 miles per hour. Reclaimed (nonpotable) water should be used whenever possible. All dirt- stock -pile areas shall be sprayed daily as needed. Permanent dust control measures shall be identified in the approved Specific Plan revegetation and landscape plans and implemented as soon as possible following completion of any soil disturbing activities. Exposed ground areas that are planned to be reworked at dates greater than one month after initial grading shall be sown with a fast - germinating native grass seed and watered until vegetation is established. All disturbed soil areas not subject to revegetation shall be stabilized using approved chemical soil binders, jute netting, or other methods approved in advance by the APCD. All roadways, driveways, sidewalks, etc., to be paved shall be completed as soon as possible. In addition, building pads shall be laid as soon as possible after grading unless seeding or soil binders are used. Vehicle speed for all construction vehicles shall not exceed 15 mph on any unpaved surface at the construction site. All trucks hauling dirt, sand, soil or other loose materials shall be covered or shall maintain at least two feet of freeboard (minimum vertical distance between top of load and top of trailer) in accordance with CVC Section 23114. Install wheel washers where vehicles enter and exit unpaved roads onto streets, or wash off trucks and equipment leaving the site. 5.b Packet Pg. 39 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 4 Sweep streets at the end of each day if visible soil material is carried onto adjacent paved roads. Water sweepers with reclaimed water shall be used where feasible. AQ -3(c) Cover Stockpiled Soils. If importation, exportation, or stockpiling of fill material is involved, soil stockpiled for more than two days shall be covered, kept moist, or treated with soil binders to prevent dust generation. Trucks transporting material shall be tarped from the point of origin. AQ -3(d) Dust Control Monitor. On all projects with an area of disturbance greater than 1 acre, the contractor or builder shall designate a person or persons to monitor the dust control program and to order increased watering as necessary to prevent transport of dust off -site. Their duties shall include holiday and weekend periods when work may not be in progress. AQ -3 Monitoring Program: These conditions shall be noted on all project grading and building plans. The applicant will also be required to secure necessary permits from the Air Pollution Control Board (APCD) before the onset of grading or demolition activities including, but not limited to additional dust control measures, evaluation for Naturally Occurring Asbestos. The applicant shall present evidence of a plan for complying with these requirements prior to issuance of a grading or building permit from the City. The applicant shall provide the City with the name and telephone number of the person responsible for ensuring compliance with these requirements. The Building Inspector and Public Works Inspectors shall conduct field monitoring. BIOLOGICAL RESOURCES MITIGATION B -3(a) Construction Requirements. Development under the Specific Plan shall abide by the requirements of the City Arborist for construction. Requirements shall include but not be limited to: the protection of trees with construction setbacks from trees; construction fencing around trees; grading limits around the base of trees as required; and a replacement plan for trees removed including replacement at a minimum 1:1 ratio. B -4(c) Riparian/Wetland Mitigation. If riparian and /or wetland habitat are proposed for removal pursuant to development under the Specific Plan, such development shall apply for all applicable permits and submit a Mitigation Plan for areas of disturbance to wetlands and /or riparian habitat. The plan shall be prepared by a biologist familiar with restoration and mitigation techniques. Compensatory mitigation shall occur on- site using regionally collected native plant material at a minimum ratio of 2:1 (habitat created to habitat impacted) in areas shown on figure 4.4 -2 as directed by a biologist. The resource agencies may require a higher mitigation ratio. If the Orcutt Regional Basin is necessary as a mitigation site for waters of the U.S. and State it shall be designed as directed by a biologist taking into consideration hydrology, soils, and erosion control and using the final mitigation guidelines and monitoring requirements U.S. Army Corps of Engineers, 2004). As noted above, the trail shall be setback out of the buffer area for riparian and wetland habitat. 5.b Packet Pg. 40 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 5 B -5(a) Bird Pre - Construction Survey. To avoid impacts to nesting special- status bird species and raptors including the ground- nesting burrowing owl, all initial ground - disturbing activities and tree removal shall be limited to the time period between September 15 and February 1. If initial site disturbance, grading, and tree removal cannot be conducted during this time period, a pre- construction survey for active nests within the limits of grading shall be conducted by a qualified biologist at the site two weeks prior to any construction activities (for ground- nesting burrowing owl survey see below). If active nests are located, all construction work must be conducted outside a buffer zone of 200 feet to 500 feet from the nests as determined in consultation with the CDFG. No direct disturbance to nests shall occur until the adults and young are no longer reliant on the nest site. A qualified biologist shall confirm that breeding /nesting is completed and young have fledged the nest prior to the start of construction. B -5(b) Burrowing Owl Survey. When an applicant requests entitlements from the City under the Specific Plan a qualified biologist shall conduct surveys for burrowing owls during both the wintering and nesting seasons (unless the species is detected on the first survey) in potentially suitable habitats prior to construction in accordance with the guidelines described in the CDFG Staff Report on Burrowing Owl Mitigation 1995). Winter surveys shall be conducted on the entire project site between December 1 and February 1, and the nesting season survey shall be conducted between April 15 and July 15. If burrowing owls are detected within the proposed disturbance area, CDFG shall be contacted immediately to develop and implement a mitigation plan to protect owls and their nest sites. B -5(c) Monarch Pre - Construction Survey. If initial ground- breaking is to occur between the months of October and March a pre- construction survey for active monarch roost sites within the limits of grading shall be conducted by a qualified biologist at the site two weeks prior to any construction activities. If active roost sites are located no ground- disturbing activities shall occur within 50 feet of the perimeter of the habitat. Construction shall not resume within the setback until a qualified biologist has determined that the monarch butterfly has vacated the site. B -5(d) VPFS Sampling Surveys. Prior to development in areas shown as potential VPFS habitat on Figure 4.4 -2, current USFWS protocol level sampling surveys shall be conducted in all such areas. A report consistent with current Federal, State, and local reporting guidelines shall be prepared to document the methods and results of surveys. If VPFS are found, the report shall include a map that identifies the VPFS locations. Should the presence of additional special- status wildlife species be determined including California linderiella, a map identifying locations in which these species were found shall be prepared and included in the report. B -5(e) FESA Consultation and Mitigation Regarding VPFS. If any VPFS individuals are located onsite pursuant to Mitigation Measure B -5(d), substantial setbacks from their identified habitat shall be implemented to avoid take of a Federally listed species. If complete avoidance is not economically or technically feasible, then Section 10 of the 5.b Packet Pg. 41 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 6 Federal Endangered Species Act (FESA) shall be used to authorize incidental take when no other Federal agency such as the Corps is involved. This process includes development of a Habitat Conservation Plan for protecting and enhancing the Federally listed species at a specific location in perpetuity. Species take can also be authorized under Section 7 of the FESA if a Federal agency is involved in the project e.g., Corps Section 404 permitting for impacts to waters of the U.S. and/or Federal funding) and agrees to be the lead agency requesting Section 7 consultation. This consultation process takes at a minimum 135 days from the official request by the Federal lead agency. The compensatory mitigation ratio shall be determined by the appropriate resource agencies. Suitable replacement habitat shall be constructed either within the site boundaries or offsite. [OASP FEIR] Figure 4.4 -2 identifies areas that could be appropriate for onsite VPFS mitigation. Figure 4.4 -2 is not intended to preclude development but shall be used as a starting point for incorporating VPFS mitigation sites into the development plan. While the Orcutt Regional Basin included in the potential VPFS mitigation sites may need regular maintenance and may be seasonally flooded, depressions could be created on the upper edges of the terrace in such a manner that they are protected from flooding. VPFS mitigation areas shall be approved by a biologist familiar with VPFS habitat "creation" techniques. Enhancement of the onsite seasonal freshwater wetland habitat that is undisturbed by project activities may also be a part of the mitigation program. Alternatively, fairy shrimp cysts could be collected during the dry season from the existing habitat and placed into storage. Topsoil could also be removed and stored in conditions suitable to retain cysts. Wetland habitat could be enhanced /created in the areas shown on Figure 4.4 -2 by grading depressions in the landscape and "top dressing" the depressions with the preserved topsoil. Preserved cysts would be added to the recreated wetlands in December or January, after sufficient ponding has occurred. It is important to note that VPFS habitat mitigation is still considered experimental. VPFS habitat mitigation is ambitious as it is costly, labor intensive, and difficult to ensure success. Habitat may be "created" only in an existing vernal pool landscape that provides suitable soils and a number of other specific ecological factors (USFWS, 2004). An alternative to onsite mitigation is the purchase of mitigation bank credits. Credits can be purchase by the acre as suitable mitigation for VPFS. There is currently no known mitigation bank with VPFS habitat occurring within San Luis Obispo County, however, mitigation banks may be available in the future. 0 B -3a, B -4c, B -5 Monitoring Program: Monitoring will include Natural Resources Department staff consultation and implementation at time of review and prior to approval of grading plan(s) and during tract construction (B -3a, B -4c, B -5). 5.b Packet Pg. 42 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 7 B -6(c) Educational Pet Brochure. Any development pursuant to the Specific Plan shall prepare a brochure that informs prospective homebuyers and Home Owners Association (HOA) members about the impacts associated with non- native animals, especially cats and dogs, to the project site; similarly, the brochure must inform potential homebuyers and all HOA members of the potential for coyotes to prey on domestic animals. B -6(c) Landscaping Plan Review. To ensure that project landscaping does not introduce invasive non - native plant and tree species to the region of the site, the final landscaping plan shall be reviewed and approved by a qualified biologist. The California Invasive Plant Council (Cal -IPC) maintains several lists of the most important invasive plants to avoid. The lists shall be used when creating a plant palette for landscaping to ensure that plants on the lists are not used. The following plants shall not be allowed as part of potential landscaping plans pursuant to development under the Specific Plan: African sumac (Rhus lancea) Australian saltbush (Atriplex semibaccata) Black locust (Robinia pseudoacacia) California pepper (Schinus molle) and Brazilian pepper (S. terebinthifolius) Cape weed (Arctotheca calendula) Cotoneaster (Cotoneaster pannosus), (C. lacteus) Edible fig (Ficus carica) Fountain grass (Pennisetum setaceum) French broom (Genista monspessulana) Ice plant, sea fig (Carpobrotus edulis) Leafy spurge (Euphorbia esula) Myoporum (Myoporum spp.) Olive (Olea europaea) Pampas grass (Cortaderia selloana), and Andean pampas grass (C. jubata) Russian olive (Elaeagnus angusticifolia) Scotch broom (Cytisus scoparius) and striated broom (C. striatus) Spanish broom (Spartium junceum) Tamarix, salt cedar (Tamarix chinensis), (T. gallica), (T. parviflora), (T. ramosissima) Blue gum (Eucalyptus globulus) Athel tamarisk (Tamarix aphylla) B -6c Monitoring Program: Compliance with mitigation measures will be reviewed with landscaping plans as part of the architectural review submittal and ultimately shown on improvement plans and construction drawings. CULTURAL RESOURCES MITIGATION CR -1(d) Archaeological Resource Construction Monitoring. At the commencement of 5.b Packet Pg. 43 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 8 project construction, an orientation meeting shall be conducted by an archaeologist for construction workers associated with earth disturbing procedures. The orientation meeting shall describe the possibility of exposing unexpected archaeological resources and directions as to what steps are to be taken if such a find is encountered. An archaeologist shall monitor construction grading within 50 meters (164 feet) of the two isolated finds. In the event that prehistoric or historic archaeological resources are exposed during project construction, all earth disturbing work within 50 meters (164 feet) of the find must be temporarily suspended or redirected until an archaeologist has evaluated the nature and significance of the find. After the find has been appropriately mitigated (e.g., curation, preservation in place, etc.), work in the area may resume. The City should consider retaining a Chumash representative to monitor any field work associated with Native American cultural material. If human remains are exposed, State Health and Safety Code Section 7050.5 requires that no further disturbance shall occur until the County Coroner has made the necessary findings as to origin and disposition pursuant to Public Resources Code Section 5097.98. CR -Id Monitoring Program: Requirements for cultural resource mitigation shall be clearly noted on all plans for project grading and construction. DRAINAGE AND WATER QUALITY MITIGATION D -2(a) Vegetative and Biotechnical Approaches to Bank Stabilization. Vegetative or biotechnical (also referred to as soil bioengineering) approaches to bank stabilization are preferred over structural approaches. Bank stabilization design must be consistent with the SLO Creek Stream Management and Maintenance Program Section 6. Streambank stabilization usually involves one or a combination of the following activities: Regrading and revegetating the streambanks to eliminate overhanging banks and create a more stable slope; Deflecting erosional water flow away from vulnerable sites; Reducing the steepness of the channel bed through installation of grade stabilization structures; Altering the geometry of the channel to influence flow velocities and sediment deposition; Diverting a portion of the higher flow into a secondary or by -pass channel; Armoring or protecting the bank to control erosion, particularly at the toe of slopes. The bank stabilization design will: Be stable over the long term; 5.b Packet Pg. 44 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 9 Be the least environmentally damaging and the "softest" approach possible; Not create upstream or downstream flooding or induce other local stream instabilities; Minimize impacts to aquatic and riparian habitat. D -2(c) Riparian Zone Planting. The OASP proposes riparian enhancement of creek corridors. Section 11 guidelines of the SLO Creek Drainage Design Manual shall be followed for riparian areas that are modified, created and /or managed for flood damage reduction, stream enhancement, and bank repair. Linear park terrace vegetation, streambank repair and channel maintenance projects may require stream channel modifications that include shaping, widening, deepening, straightening, and armoring. Many channel management projects also require building access roads for maintenance vehicles and other equipment. These construction activities can cause a variety of impacts to existing sensitive riparian and aquatic habitat that, depending on the selected design alternative, range from slight disturbances to complete removal of desirable woody vegetation and faunal communities. In urban areas within the SLO creek watershed, riparian vegetation often provides the only remaining natural habitat available for wildlife populations. D -5(a) Biofilters. The applicant shall submit to the Director of Community Development for review and approval a plan that incorporates grassed swales (biofilters) into the project drainage system where feasible for runoff conveyance and filtering of pollutants. D -5(c) Pervious Paving Material. Consistent with Land Use Element Policy 6.4.7, the applicant shall be encouraged to use pervious paving material to facilitate rainwater percolation. Parking lots and paved outdoor storage areas shall, where feasible, use pervious paving to reduce surface water runoff and aid in groundwater recharge. D -2a, D -2c, D -5a, D -5c Monitoring Program: Monitoring will include Natural Resources Department staff consultation and implementation at time of landscaping construction plan review and Engineering - Public Works staff at the time of tract construction. NOISE MITIGATION N -1(a) Compliance with City Noise Ordinance. Construction hours and noise levels shall be compliant with the City Noise Ordinance [Municipal Code Chapter 9.12, Section 9.12.050(6)]. Methods to reduce construction noise can include, but are not limited to, the following: Equipment Shielding. Stationary construction equipment that generates noise can be shielded with a barrier. Diesel Equipment. All diesel equipment can be operated with closed engine doors and equipped with factory- recommended mufflers. Electrical Power. Whenever feasible, electrical power can be used to run air 5.b Packet Pg. 45 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 10 compressors and similar power tools. Sound Blankets. The use of sound blankets on noise generating equipment. N -1 a Monitoring Program: Requirements for construction noise mitigation shall be clearly noted on all plans for project grading and construction. PUBLIC SERVICES MITIGATION PS -4 Wastewater Main System Extensions. Prior to recordation of a final map for Jones Ranch (TR 3066), the improvement plans for the tract shall include connections to future improvements planned by Tract 3063 (Righetti Ranch) to convey sanitary sewer service to the existing connection points on Tank Farm Road. Prior to recordation of Tract 3066, (a) the needed improvements through Tract 3063 shall be completed and available to tie -in Tract 3066, or (b) Tract 3066 shall provide easements and financial guarantees that guarantee Tract 3066 can proceed with construction of Tract 3063 improvements to serve the Jones Ranch. PS -4 Monitoring Program: Compliance will be reviewed and implemented by the City Engineer's office with the subdivision plans and accompanying final map prior to recordation of the final map. PUBLIC SAFETY MITIGATION S -2(b) Disclosure. Prior to recordation of final map, the applicant shall develop Covenants, Codes, and Restrictions (CC &R's) that disclose to potential buyers or leasers that aircraft over - flights occur, and that such flights may result in safety hazard impacts should an aircraft accident occur. In addition, prior to recordation of final map, avigation easements shall be recorded over the entire project site for the benefit of the SLO County Regional Airport. S -2b Monitoring Program: Monitoring will include Community Development, City Attorney and Engineering staff approvals of the Disclosure(s) prior to recordation of a final tract map. S -4(d) 55- Gallon Drums. Prior to development on the property where 55- Gallon drums were identified on FEIR Figure 4.9 -1, soils samples shall be taken in the vicinity of the drums and analyzed for total extractable petroleum hydrocarbons (TEPH) by EPA method 8015, heavy metals by CCR Title 22 metals, and solvents by EPA method 8260B. If levels of contaminants are found to exist in concentrations that exceed regulatory thresholds, further sampling may be needed to determine the extent of contamination. If contamination is delineated, an appropriate remediation method shall be implemented according to the size of the area contaminated and the contaminant involved. 5.b Packet Pg. 46 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 11 S -4d Monitoring Program: Monitoring will include Engineering staff review of soils sampling and implementation of appropriate remediation measures, if required, prior to tract construction in the vicinity of any such positive sample(s). TRANSPORTATION MITIGATION T -4 Street B & Tiburon Way Alignment. Applicant shall align Street B with the existing alignment of Tiburon Way and design the roadway curvature to maintain appropriate residential speeds. T -4 Monitoring Program: Compliance and implementation shall be reviewed by the City Engineer's office with the subdivision plans and shall be completed prior to issuance of any building permits for Phase 1. T -6 Traffic Calming & Safety. Intersection of Streets A & B shall be controlled by a single lane urban compact intersection. Eliminate Mid -block crosswalk on Street A. Align curb, gutter, and sidewalk with Sponza Drive of the Taylor Wingate Project. T -6 Monitoring Program: Compliance and implementation shall be reviewed by the City Engineer's office with the subdivision plans and accompanying final map prior to recordation of the final map. UTILITIES AND SERVICE SYSTEMS MITIGATION USS -1 Off -site Water Main Line Extensions to the OASP To Meet Fire Flow and Storage Standards. Concurrent with applications for Final Map(s), the applicant shall submit a water supply plan to meet adequate fire flow standards for all lots within each Final Map. Implementation of such a water line extension plan shall be included as a part of public improvement plans for the subdivision, and approved by Utilities, Public Works and the City Engineer. This implementation plan may include a financing plan, including reimbursement provisions, approved by the City Council at the time of considering any Final Map. Required water main line extension(s) to the subdivision shall be completed and operational to the satisfaction of the Utilities Director, prior to construction of any of the residential and /or commercial uses. USS -1 Monitoring Program Compliance will be reviewed and implemented by the City Engineer's office with the subdivision plans and shall be completed prior to issuance of any occupancy permits for Tract 3066. 5.b Packet Pg. 47 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 12 SECTION 2. Vesting Tract Map Approval with Findings & Conditions. The City Council does hereby approve application SBDV- 0067 -2014 TR/ER (VTM #3066, "Jones Ranch "), a tentative tract map to create up to 33 residential, commercial and open space lots, based on the following findings, and subject to the following conditions being incorporated into the project: Findingsl As conditioned, the design of the Vesting Tentative Tract Map is consistent with the General Plan because the proposed subdivision respects existing site constraints, will incrementally add to the City's residential housing inventory, results in parcels that meet minimum density standards, and will be consistent with the density, lot sizes and project amenities established by the Orcutt Area Specific Plan (OASP). 2. The site is physically suited for the type and density of development allowed in the C /OS -SP, P -F -SP, R -1 -SP, R -2 -SP, R -3 -SP, R -4 -SP, and CC -MU zoning districts. The design of the vesting tentative tract map and the proposed improvements are not likely to cause serious health problems, substantial environmental damage or substantially and unavoidably injure fish or wildlife or their habitat, since further development or redevelopment of the proposed parcels will occur consistent with VTM 3066 and the required architectural review process, which will allow for detailed review of development plans to assure compliance with City plans, policies, and standards. 4. As conditioned, the design of the subdivision will not conflict with easements for access through (or use of property within) the proposed subdivision, and the project is consistent with the pattern of development prescribed in the Orcutt Area Specific Plan. 5. The proposed project will provide affordable housing consistent with the intent of California Government Code §65915, and in compliance with City policies and the Housing Element. 6. The tentative map, as conditioned, will comply with all environmental mitigation measures prescribed herein, and therefore is consistent with the California Environmental Quality Act, the OASP Final EIR, and the Initial Study- Mitigated Negative Declaration (IS -MND). 7. The design of the subdivision provides, to the extent feasible, for future passive or natural heating or cooling opportunities. Conditions: Dedications and Easements 1. Any easements including but not limited to provisions for all public and private utilities, access, grading, drainage, slope banks, construction, public and private streets, pedestrian and bicycle facilities, common driveways, and maintenance of the same shall be shown on the final map and /or shall be recorded separately prior to or concurrent with the recordation of the map, unless a deferral is requested by the subdvider and granted by the 5.b Packet Pg. 48 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 13 City. Said easements may be provided for in part or in total as blanket easements 2. The final map and improvement plans shall show the extent of all on -site and off -site offers of dedication. Subdivision improvement plans and or preliminary designs may be required for any deferred improvements so that dedication limits can be established. These improvements may include but are not limited to road construction and widening, grading and drainage improvements, utility easements, bridges, bike bridges, transit stops, bikeways, pedestrian paths, and intersection improvements. 3. The map and improvement plans shall provide for all minimum street improvements and utility placements within the improved or partially improved streets adjoining the subdivision as needed for orderly development to the satisfaction of the City. In some cases, "dry" pipes may be required to be constructed under improved street sections for the benefit of others. 4. Access rights shall be dedicated to the City along Orcutt Road except at approved driveway locations and intersections as shown on the tentative map or as otherwise approved by the city. 5. The subdivider shall dedicate a 10' wide street tree easement and 6' public utility easement (P.U.E.) across the frontage of each lot. Said easements shall be adjacent to and contiguous with all public right -of -way lines bordering each lot. A 10' wide street tree easement and 6' P.U.E. shall be provided along the frontage for all private streets. A 10' street tree easement and 15' P.U.E. shall be provided along the frontages of the Mixed Use Commercial Lots 24 — 26. The easements may be removed or reduced under the footprint of proposed buildings. 6. The subdivider shall dedicate all public Open Space in fee to the City, consistent with the OASP, in conjunction with or prior to the Phase 1 map recordation unless otherwise deferred or a reimbursement agreement is processed. Deferral shall be approved by the City and may require that all appropriate OASP fees are paid as a condition of development. The land shall be granted free and clear of all encumbrances to the satisfaction of the City. 7. All private improvements shall be owned and maintained by the individual property owners or the Homeowner's Association (HOA) as applicable. Private improvements include but are not limited to streets, sidewalks, private pedestrian/bike paths, sewer mains, drainage systems, detention basin(s), street lighting, landscape, landscape irrigation, common areas, pocket parks, and linear park improvements. 8. The private open space C /OS Lots 31 and 32 along with the proposed improvements, including but not limited to trails, bikeways, and landscaping shall be owned and maintained by the HOA. Open Space and bikeway easements along with any public utility easements shall be offered to the City and shown and noted on the final map. An easement agreement may be required for specific open space areas, creek corridors, bikeways, and utility corridors in a format approved by the City. 5.b Packet Pg. 49 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 14 9. A wildland fuel management /reduction zone along with any required easements and /or zone limits shall be provided for Lots 31 and 32 to the satisfaction of the Fire Chief. If required, the limits shall be shown and noted on the final map and improvement plans for reference. The limits of the zone shall be in accordance with the adopted Fire Code and approved to the satisfaction of the City Fire Chief and City Natural Resources Manager. The HOA shall be responsible for wildland fuel management, weed abatement, and creek maintenance within the established fuel reduction zone and private open space areas. 10. A notice of requirements or other agreement acceptable to the City of San Luis Obispo may need to be recorded in conjunction with the Final Map to clarify development restrictions, conditions of development, and references to any pertinent conditions related to the OASP and City codes and ordinances. 11. Off -site easements and /or dedications may be required to facilitate secondary points of access, through street access, and public water and sewer main extensions beyond the tract boundary and in accordance with the GASP. Looped water mains may be required in accordance with the tentative map, development phasing, and the City water model to provide adequate service and compliance with adopted codes and standards. 12. Off -site dedication/acquisition of property for this public right -of -way purpose is necessary to facilitate orderly development and the anticipated OASP improvements. The subdivider shall work with the City and the land owner(s) to acquire the necessary rights -of -way. In the event the subdivider is unable to acquire said rights -of -way, the City Council may consider lending the subdivider its powers of condemnation to acquire the off -site right -of -way dedication, including any necessary slope and drainage easements. If condemnation is required, the subdivider shall agree to pay all costs associated with the off -site right -of -way acquisition (including attorney fees and court costs). 13. With respect to all off -site improvements, prior to filing of the Final Map, the subdivider shall either: a. Clearly demonstrate their right to construct the improvements by showing title or interest in the property in a form acceptable to the City Engineer; or, b. Demonstrate, in writing, that the subdivider has exhausted all reasonable efforts to acquire interest to the subject property and request that the City assist in acquiring the property required for the construction of such improvements and exercise its power of eminent domain in accordance with Government Code Section 66462 .5 to do so, if necessary. subdivider shall also enter into an agreement with the City to pay all costs of such acquisition including, but not limited to, all costs associated with condemnation. Said agreement shall be in a form acceptable to the City Engineer and the City Attorney. If condemnation proceedings are required, the subdivider shall submit, in a form acceptable to the City Engineer, the following documents regarding the property to be acquired: i. Property legal description and sketch stamped and signed by a Licensed Land Surveyor or Civil Engineer authorized to practice land 5.b Packet Pg. 50 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 15 surveying in the State of California; ii. Preliminary title report including chain of title and litigation guarantee; iii. Appraisal of the property by a City approved appraiser. In the course of obtaining such appraisal, the property owner(s) must be given an opportunity to accompany the appraiser during any inspection of the property or acknowledge in writing that they knowingly waived the right to do so; iv. Copies of all written correspondence with off -site property owners including purchase summary of formal offers and counter offers to purchase at the appraised price. V, Prior to submittal of the aforementioned documents for City Engineer approval, the Subdivider shall deposit with the City all or a portion of the anticipated costs, as determined by the City Attorney, of the condemnation proceedings. The City does not and cannot guarantee that the necessary property rights can be acquired or will, in fact, be acquired. All necessary procedures of law would apply and would have to be followed. Transportation 14. Secondary access is required from all portions and /or phases of the subdivision where more than 30 dwelling units are proposed. The location and development of the proposed secondary access shall be presented to the City for review and approval prior to the preparation of the related improvement plans. 15. Unless an alternate access and egress plan is approved to the satisfaction of the Public Works Director and the Fire Chief, the westerly Phase 1 of Jones Ranch shall be provided with a secondary access to Orcutt Road in conjunction with an access to Tank Farm Road. The completion of development may need to be deferred to Phase 2 or the B Street bridge would need to be construction in conjunction with Phase 1. Regardless of access, the required water supply to this phase may require a looped water main with indications that the B Street bridge may need to be constructed in support of the required water main extension prior to commencing with combustible construction. 16. Fire Department access shall be provided for each construction phase to the satisfaction of the Fire Chief. Phased street construction shall consider and provide suitable Fire Department hydrant access, circulation routes, passing lanes, and turn- around areas in accordance with current codes and standards. 17. All public streets shall conform to City Engineering Standards and OASP including curb, gutter, and sidewalk, driveway approaches, and curb ramps as approved by the City Engineer. Where conflicts occur between the City Engineering Standards and concepts identified in the GASP, final determination of shall design shall be provided by the City Engineer. Traffic calming improvements may be required at select locations within in the subdivision. Improvements may include bulb -outs, elevated sidewalks /speed tables, or alternate paving materials to the satisfaction of the Public Works Department and Fire Department. 5.b Packet Pg. 51 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 16 18. The developer shall record a Notice of Requirements with each map phase regarding the designed and installed traffic calming devices and that the subdivisions are not eligible for future Residential Parking District or Neighborhood Traffic Management program processing. 19. The improvement plans shall include all final line -of -sight analysis at certain intersections to the satisfaction of the Public Works Department. Fence heights and plantings in the areas of control shall be reviewed in conjunction with the analysis. A separate recorded agreement or Notice of Requirements for private property owner or HOA maintenance of sight lines may be required. 20. The final map and improvement plans shall include the required right -of -way, transit stop easements, and all details of the required bus turnouts to accommodate all proposed and future bus stops per City Engineering Standards, the OASP and current Short Range Transit plan. The final location of all North -South and East -West route stops shall be approved to the satisfaction of the City Transit Manager and Public Works Director. 21. The public improvement plans may need to include full frontage improvements on Orcutt Road from north of B Street to Tank Farm Road, including the Imel and Garay properties. The northerly transition may require improvements across the Fiala frontage. The plans shall show all improvements including concrete curb, gutter, and sidewalk per City Engineering Standards on the west side of Orcutt; 6' bike lanes, 12' travel lanes, and a 12' two -way left turn lane in accordance with the tentative map, OASP, City Engineering Standards, and the Cal Trans Highway Design Manual; undergrounding of the overhead utilities on the west side; and complete details for the Orcutt Road points of access. 22. The east side of Orcutt Road where widening is proposed or required may terminate in an AC berm to match the existing adjoining road sections per City Engineering Standards or the appropriate County rural road standards where approved by the City Engineer. The Orcutt Road plans shall include all phases of construction including road widening, stormdrain improvements, culvert extensions, grading /walls, and any water quality BMP's. Some off -site dedication of property for public right -of -way purposes may be required to facilitate the Orcutt Road improvements and transitions between the OASP full build -out road section and adjoining road segments beyond the tract boundaries. 23. The Orcutt Road improvements shall be constructed as a condition of the map, unless a deferral is requested by the subdvider and granted by the City. Prior to approval of any deferrals, the subdivider shall demonstrate that the construction of the required improvements is not feasible. 24. Prior to occupancy of Phase 1 the Tank Farm / Orcutt intersection shall be modified to provide a southbound right -turn lane on Orcutt Road and to eliminate the skew, as required in the GASP. All overhead utilities conflicting with this improvement shall be undergrounded. 25. The applicant shall conduct neighborhood speed surveys one year after occupancy of 5.b Packet Pg. 52 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 17 each phase at locations approved by the Director of Public Works. If 85th percentile speeds exceed current City NTM thresholds additional traffic calming measures shall be installed. The applicant shall bond for these potential additional traffic calming measures. 26. All mitigation measures (MM) specific to Transporation requirements shall be provided as detailed under CEQA section 1, above, to the satisfaction of the City Engineer. 27. The subdivider may present financing and reimbursement programs for transportation improvements to be considered with approval and recordation of the initial final map for VTM #3066. Any such program(s) will be subject to approval by the City Council. 28. The subdivider shall be responsible for securing the off -site right -of -way needs for VTM #3066, and dedicating that right -of -way to the city as a condition of final map approval. On and Off -Site Improvements 29. Improvement plans for the entire subdivision, including any off -site improvements shall be approved to the satisfaction of the Public Works Department, Utilities Department, and Fire Department prior to map recordation. 30. Off -site improvements may include but are not limited to roadways, sewer mains, water mains, stormdrain improvements, off -site access roadways, the water main extensions provided by MM USS -1, and the "B" Street to Tiburon Way alignment improvements. 31. A separate demolition permit will be required from the Building Division for the removal of any existing structures and related infrastructure. Building removals are subject to the Building Demolition Regulations including the additional notification and timing requirements for any structure over 50 -years old. 32. The improvement plans shall clearly show all existing structures, site improvements, utilities, water wells, septic tanks, leach fields, gas and wire services, etc. The plan shall include any pertinent off -site water well and private waste disposal systems that are located within regulated distances to the proposed drainage and utility improvements. The plan shall include the proposed disposition of the improvements and any proposed phasing of the removal and demolition. All structures and utilities affected by the proposed lot lines shall be removed and receive final inspection approvals prior to map recordation. 33. The subdivider shall provide additional documentation on the easement agreement related to the existing well and appurtenances located on the Jones parcel and serving the Fiala property. Some existing non - conformance was generally recognized per Appendix Section A -2 of the OASP. Additional detail and clarifications may be required on the final map and improvement plans to acknowledge any legal non - conforming utility installations between the parcels /lots in question. 34. If construction phasing of the new street pavement is proposed, the phasing shall provide for the ultimate structural street section and pavement life (per the City's Pavement 5.b Packet Pg. 53 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 18 Management Plan) prior to acceptance by the City. The engineer of record shall detail this requirement in the public improvement plans, to the satisfaction of the Public Works. 35. The improvement plan submittal shall include a complete construction phasing plan in accordance with the conditions of approval and map phasing. A truck circulation plan and construction management and staging plan shall be included with the improvement plan submittal. General truck routes shall be submitted for review and acceptance by the City. The engineer of record shall provide a summary of the extent of cut and fill with estimates on the yards of import and export material. The summary shall include rough grading, utility trench construction, road construction, AC paving, concrete delivery, and vertical construction loading estimates on the existing public roadways. The developer shall either; 1) complete roadway deflection testing before and after construction to the satisfaction of the City Engineer and shall complete repairs to the pre- construction condition, or 2) shall pay a roadway maintenance fee in accordance with City Engineering Standards and guidelines, or 3) shall propose a pavement repair /replacement program to the satisfaction of the City Engineer prior to acceptance of the subdivision improvements. 36. Retaining wall and /or retaining wall /fence combinations along property lines shall be approved to the satisfaction of the Planning Division and shall conform with the zoning regulations for allowed combined heights or shall be approved through the ARC or separate Fence Height exception process. 37. The ARC plans and public improvement plans shall show the location of the proposed mail receptacles or mail box units (MBU's) to the satisfaction of the Post Master and the City Engineer. Provide a mailbox unit or multiple units to serve all dwelling units and lease spaces within this development as required by the Post Master. MBU's shall not be located within the public right -of -way or public sidewalk area unless specifically approved by the City Engineer. Contact the Post Master at 543 -2605 to establish any recommendations regarding the number, size, location, and placement for any MBU's. 38. Street trees are required as a condition of development. Tree species and planting requirements shall be in accordance with City Engineering Standards. Street trees shall generally be planted at the rate of one 15- gallon street tree for each 35 lineal feet of property frontage. Street trees shall be planted along private streets as required for public streets. The subdivision improvement plans /landscape plans shall include street tree plantings along the Orcutt Road frontage. Utilities 39. Specialized street pavement in the area of public water and /or sewer mains may create maintenance /replacement concerns and additional costs. The final pavement sections shall be reviewed and approved in conjunction with ARC approvals and public improvement plan review. A separate agreement and /or CC &R provision shall be required to clarify that the Jones Ranch Homeowners Association will have final street maintenance responsibility in areas of specialized pavement where said pavement is damaged or removed in conjunction with public improvements or maintenance of said public water and /or sewer mains. 5.b Packet Pg. 54 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 19 40. The City will not be responsible for replacement of any specialty street pavement within private streets. City trench repairs within private streets will be backfilled and finished per City Engineering Standards. 41. Separate utilities, including water, sewer, gas, electricity, telephone, and cable TV shall be served to each lot to the satisfaction of the Public Works Department and serving utility companies. All public and private sewer mains shall be shown on the public improvement plans and shall be constructed per City Engineering Standards unless a waiver or alternate standard is otherwise approved by the City. The plans shall clearly delineate and distinguish the difference between public and private improvements. 42. Recycled water mains shall be extended along A Street, B Street, and /or Sponza to serve the landscape irrigation of the project's R2 lots and commercial lots. Applicant shall work with the Water Division of the City's Utilities Department to determine the appropriate size of all proposed recycled water mains. 43. City recycled water or another non - potable water source, shall be used for construction water (dust control, soil compaction, etc.). An annual Construction Water Permit is available from the City's Utilities Department. Recycled water is readily available near the intersection of Tank Farm Road and Orcutt Road. 44. Final grades and alignments of all public and /or private water, sewer and storm drains shall be approved to the satisfaction of the Public Works Director and Utilities Department. The final location, configuration, and sizing of service laterals and meters shall be approved in conjunction with the review of the building plans, fire sprinkler plans, and /or public improvement plans. 45. The improvement plans shall show the location of all domestic and landscape water meters. The plan shall include service lateral sizes and meter sizes. Sizing calculations may be required to justify service and meter sizing. Water impact fees related to the irrigation water meter(s) shall be paid prior to approval of the subdivision improvement plans for each pertinent map and /or construction phase. 46. Off -site utility improvements shall include the water main upgrade /replacement and extension from the High Pressure /Bishop pressure zone at the intersection of Tanglewood /Johnson Avenue to serve the subdivision. Pipe sizing is contingent upon the modeling for the proposed development phases and looping of the main. Improvement plans may be required to clarify the design for main extensions outside the Phase 1 improvements. Pressure regulating valves, control valves, or other appurtenances may be required by the Utilities Department as a part of the required water system improvements to be certain that the new area interacts properly with the existing water system. 47. A reimbursement request, if proposed for the off -site water main upgrade, shall include all pertinent details and analysis in accordance with City and State codes and ordinances and shall be presented separately to the City Council. 5.b Packet Pg. 55 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 20 48. The subdivider shall provide a plan for meeting off -site wastewater main line extensions as needed (pursuant to MM PS -4) through adjoining VTM43063. Said plan shall be approved by the Utilities Director before approval and recordation of any final map. 49. A final sewer report and supporting documentation for the OASP public sewer main design shall be approved by the Utilities Department prior to approval of the public improvement plans. 50. The final sewer report shall discuss and present additional information and assumptions on the system elevations and grades that will allow other OASP parcels to utilize the proposed public sewer main in accordance with the OASP Wastewater Plan. The applicant shall submit an analysis of a backbone system that shows the elevations and grades that serve the adjacent parcels described in the study. The City will have the final discretion on the extent and limits of the study if additional properties could reasonably benefit from the proposed alignment. 51. The depth of the off -site and on -site sewer mains shall be approved to the satisfaction of the Utilities Director. The depth analysis shall consider the balance between the possible extent of the gravity sewer basin needed to serve the other OASP properties and the long- term public maintenance requirements related to sewer depth. The analysis of sewer depth shall be considered at the intersection of Street A and Street B, at Street A and Sponza in Tract 3044, and at Street A and the northerly limits of Tract 3044. 52. Omitted ....covered by COA #68 Righetti 53. The public improvement plan submittal shall show all existing and proposed overhead wire utilities. Any existing overhead wiring within the tract boundary and adjoining Orcutt Road shall be undergrounded in conjunction with the subdivision improvements. Areas of road widening along Bullock Lane, if required for a secondary access, shall include undergrounding where applicable unless otherwise deferred or waived by the Public Works and Community Development Directors. Unless otherwise specifically approved, pole relocation in lieu of undergrounding is not supported. 54. Terminal end utility poles shall be located off -site unless otherwise approved by the City. 55. Preliminary undergrounding plans for the entire subdivision shall be processed through PGE and any respective wire utility companies in conjunction with the map recordation. 56. The subdivider shall install public street lighting and all associated facilities including but not limited to conduits, sidewalk vaults, fusing, wiring, and lumenaires along all adjoining public streets as applicable per City Engineering Standards. 57. Private street lighting shall be provided along the private streets per OASP lighting requirements, City Engineering Standard and /or as approved in conjunction with the final ARC approvals. 58. Lighting fixtures, including public streetlights shall not exceed 16' in height in accordance 5.b Packet Pg. 56 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 21 with the OASP unless otherwise required for traffic safety. The developer shall submit a streetlight proposal for approval by the City Engineer for any public streetlights. Street lights associated with the Orcutt Road and Tank Farm Road improvements, signalized intersections, or round -a -bouts shall comply with the Highway Design Manual and City Engineering Standards. Grading, Drainage and Stormwater 59. Any permit approvals required from the Army Corp of Engineers, California Fish and Wildlife, or the Regional Water Control Board shall be secured and presented to the City prior to the approval of any subdivision grading and /or improvements related to the proposed phase of construction. The engineer of record shall review the permit approvals and any specific permit conditions for compliance with the plans, subdivision improvement designs, drainage system design/report, and soils report. The engineer of record shall forward the permits to the City with a notation that the permits have been reviewed and are in general conformance with the design of the improvements. 60. The public improvement plans submittal shall clarify how the several wetlands, creek corridors, and riparian habitat areas will be preserved to the satisfaction of the Natural Resources Manager. Include any specific details for the proposed creek crossings in accordance with any preservation strategies, mitigation measures, and higher governmental authority agency permits. Sensitive areas shall be staked, fenced, or otherwise delineated and protected prior to commencing with construction, grading, or grubbing. 61. Expansion index testing or other soils analysis may be required on a lot -by -lot basis for all graded pads and for in -situ soils on natural lots in accordance with the current Building Codes or where deemed necessary by the City Engineer or Building Official. 62. Final pad certifications shall include the certification of pad construction and elevations. The soils engineer shall certify all grading prior to acceptance of the public improvements and /or prior to building permit issuance. The certification shall indicate that the graded pads are suitable for their intended use. 63. The subdivision improvement plans shall include a complete grading plan to show site accessibility in accordance with State and Federal regulations for all public and /or private roads, transit stops, trails, paths, walks, bikeways, parks, and bridges where applicable. The submittal shall provide additional analysis if site accessibility will not be provided and for any feature or element where accessibility is purportedly not required. The accessibility regulations or guidelines in effect at the time of subdivision improvement construction will be applied. 64. The subdivision improvement plans, grading plans, drainage plans, and drainage reports shall show and note compliance with City Codes, Standards and Ordinances, Floodplain Management Regulations, OASP stormwater provisions, Waterways Management Plan Drainage Design Manual, and the Post Construction Stormwater Regulations as promulgated by the Regional Water Quality Control Board, whichever pertinent sections 5.b Packet Pg. 57 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 22 are more restrictive. 65. The improvement plan submittal shall include a complete grading, drainage, and erosion control plan. The proposed grading shall consider the proposed construction phasing. Historic off -site and upslope watersheds tributary to the area of phased construction shall be considered. Run -on from adjoining developed or undeveloped parcels shall be considered. 66. The calculated 100 -year flood limits shall be shown and noted on the improvement plans and an additional final map sheet for reference. The drainage report and final plans shall clarify the 100 -year flood elevations, clearances, and freeboard at all new vehicle bridge, pedestrian bridge, and pipe bridge crossings of the creek corridors. 67. The engineer of record shall provide a digital copy of the final HEC -RAS modeling to the City in accordance with Section 4.0 of the Waterways Management Plan Drainage Design Manual. 68. The developer shall prepare an Operations and Maintenance Manual for review and approval by the City in conjunction with the development of any stormwater BMP's that will be maintained by the HOA or by the respective private property owner. A Private Stormwater Conveyance Agreement shall be recorded in a format provided by the City prior to final inspection approvals and acceptance of subdivision improvements. 69. The subdivider /developer shall provide notification to private property owners regarding any individual maintenance responsibility of backyard stormwater BMP's in accordance with Section E.2 of the RQWCB Resolution R3- 2013 -0032. The notification may be by Notice of Requirements or other method acceptable to the City. 70. The stormwater improvements other than City Standard public stormdrain infrastructure shall be maintained by the HOA. A separate encroachment /hold harmless agreement may be required in conjunction with certain improvements proposed for location within the public rights -of -way. 71. The final details for the proposed bioretention facilities located within the public right -of- way shall be approved to the satisfaction of the City Engineer. The project soils engineer shall review and provide recommendations on the proposed site constructed and /or proprietary retention systems. Analysis of impacts to the public improvements, protection of utilities, and methods to minimize piping and protection of private properties shall be addressed in the final analysis. 72. The developer shall show legal entitlement to access or annex into the regional detention basin or shall provide an alternate drainage solution and strategy to the satisfaction of the City. 73. The proposed detention basin and any pre -basin shall be designed in accordance with the OASP requirements and the Waterways Management Plan Drainage Design Manual. The proposed surface runoff and drainage from the detention basin(s) shall include a non- 5.b Packet Pg. 58 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 23 erosive outlet to an approved point of disposal. The outlet(s) design and location should replicate the historic drainage where feasible. Any off -site detention basin, temporary basin, or other drainage improvements shall be approved by the City. Any required or proposed off -site grading or drainage improvements shall be completed within recorded easements or under an appropriate license or other private agreement. 74. The naming of the local creeks and drainages shall comply with the appropriate and pertinent creek naming standards and justifications. The inclusion of the naming on the final map and /or improvement plans shall be approved by the City prior to map and /or plan approval as applicable. 75. All bridging, culverting and modifications to the existing creek channels along with any necessary clearing of existing creek and drainage channels, including tree pruning or removals, and any necessary erosion repairs shall be in compliance with the OASP, city standards and policies, the Waterways Management Plan and shall be approved by the Natural Resources Manager, Public Works Department, Army Corp of Engineers, the Regional Water Quality Control Board, and California Fish & Wildlife. 76. Any existing areas of swale, creek and /or channel erosion shall be stabilized to the satisfaction of the City Engineer, Natural Resources Manager, and other permitting agencies. 77. The project soils engineer shall review the final grading and drainage plans and Low Impact Development (LID) improvements. The soils report shall include specific recommendations related to public improvements, site development, utility, and building pad /foundation construction related to the proposed LID improvements. The project soils engineering report shall be referenced on the final map in accordance with the Subdivision Regulations and City Engineering Standards. 78. The final plans and drainage report shall show and note compliance with City Engineering Standard 1010.13 for spring or perched groundwater management and for water quality treatment of run -off from impervious streets, drive aisles, parking areas, and trash enclosures. 79. A SWPPP is required in accordance with State and local regulations. A hard copy of the SWPPP shall be provided to the City in conjunction with the Public Improvement Plan submittal and subsequent building plan submittals. The WDID number shall be included by reference on all construction plans sets. An erosion control plan shall be included with the improvement plans and all building plan submittals for demolitions, grading, and new construction. 80. The project development and grading shall comply with all air quality standards and mitigation measures. The developer shall provide written notification from the County Air Pollution Control District (APCD) regarding compliance with all local, state, and federal regulations including but not limited to the National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations related to Naturally Occuring Asbestos NOA). 5.b Packet Pg. 59 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 24 Fire 81. The project shall provide a minimum of two points of access to the subdivision from an existing public way wherever there are 30 or more housing units. Emergency Vehicle Access points will NOT be accepted in lieu of full access. 82. All streets that are less than 28 feet in width shall be posted "No Parking — Fire Lane" on both sides. Streets less than 36 feet in width shall be posted on one side only. 83. The project shall provide water mains and city - standard fire hydrants to provide a minimum needed fire flow of 1500 GPM for 2 hours to within 300 feet of the exterior walls of all proposed structures. Fire hydrant spacing shall not exceed 500 feet. Homeowners' Association 84. Subdivider shall prepare conditions, covenants, and restrictions (CC &R's) to be approved by the City Attorney and Community Development Director prior to final map approval. VTM #3066 shall have the option of establishing their own HOA, or be incorporated into the "Master Homeowner's Association" (Master HOA) established under VTM #3063 Righetti Ranch). To the extent desired by the subdivider, individual phases of the project may include sub - associations (such as for the affordable housing and /or townhome products) as described in the applicant's "Master Declaration of CC &R's for Righetti Ranch ", dated 6/6/14. CC &R's shall minimally contain the following provisions that pertain to all lots: a. The initial set of CC &R's provided for the VTM #3066 final map shall define either an independent HOA for Jones Ranch, or will be automatically incorporated into the Righetti Ranch Master HOA through annexation provisions of the Master HOA. A graphic or other exhibit describing all properties to be annexed to the Righetti Ranch Master HOA shall be included with any CC &R's for VTM #3066. b. All private improvements shall be owned and maintained by the individual property owners, sub - associations or the Master HOA as applicable. Private improvements include but are not limited to streets, sidewalks, pedestrian and bike paths, sewer mains, drainage systems, detention basin(s), street lighting, landscape, landscape irrigation, and common area improvements. c. Grant to the city the right to maintain common areas if the HOA fails to perform, and to assess the HOA for expenses incurred, and the right of the city to inspect the site at mutually agreed times to assure conditions of CC &R's and final map are being met. d. No parking except in approved, designated spaces. e. No outdoor storage of boats, campers, motorhomes, or trailers nor long -term storage of inoperable vehicles. f. No outdoor storage by individual units except in designated storage areas. g. The responsibility for the placement of the trash and recycling containers at the street on collection days will be the responsibility of the property owner's association. The property owner's association shall coordinate with San Luis 5.b Packet Pg. 60 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 25 Garbage Company regarding the collection time and preferred location for the placement of trash and recycling containers to minimize the obstruction of project streets. h. No changes in city- required provisions of the CC &R's will be considered valid and in effect without prior City Council approval. i. Provision for all of the maintenance responsibilities outlined in various conditions. Planning Requirements 85. At the time of submittal of a request for a final map, the subdivider shall provide a written report detailing the methods and techniques employed for complying with all required environmental mitigation measures as adopted herein. 86. In order to be consistent with the requirements of the Orcutt Area Specific Plan and County Airport Land Use Plan, the property owner shall grant an avigation easement for the benefit and protection of the City of San Luis Obispo, the County of San Luis Obispo and the San Luis Obispo County Airport via an avigation easement document prior to the recordation of the final map. 87. All owners, potential purchasers, occupants (whether as owners or renters), and potential occupants (whether as owners or renters) shall 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. 88. Provisions for trash, recycle, and green waste containment, screening, and collection shall be approved to the satisfaction of the City and San Luis Obispo Garbage Company. Proposed refuse storage area(s) and on -site conveyance shall consider convenience, aesthetics, safety, and functionality. Ownership boundaries and/or easements shall be considered in the final design. Any common storage areas shall be maintained by the HOA and shall be included in the OCR's or other property maintenance agreement accordingly. The solid waste solutions shall be shown and noted on the submittal(s) for Architectural Review Commission (ARC) approvals. 89. Prior to the issuance of building permits for residential units, the Architectural Review Commission shall review the residential building program, including building and landscape improvements, and provide comments and recommendations to the Community development Director. Final architectural design approval authority shall be vested in the Community Development Director. Director decisions may be appealed pursuant to standard city policies. 90. Prior to the recording of any phase of the final map, the applicant shall enter into an Affordable Housing Agreement with the City Council that details the timing of construction of affordable units on -site, proposed "transfers" of affordable units to another site, , and contains guarantees for failure to complete any or all of the affordable housing units (such as collecting affordable housing in -lieu fees, cash guarantees for the completion of the affordable units, providing a letter of credit, bond or other financial guarantee to assure 5.b Packet Pg. 61 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 26 compliance). 91. The tentative tract map as presented includes an option to create a fifth (51') homestead parcel for Jones Ranch in the event that the `B" Street to (existing) Tiburon Way "preferred road alignment" is completed. This alignment (off -site through the Imel property), is described in Exhibit A which identifies how the 5t" parcel would be described and accessed with utilities and vehicles. 92. A construction phasing plan shall be submitted to the Community Development Director prior to the issuance of the first building permit. 93. The subdivider shall develop a Construction Management Plan for review and approval by the Public Works and Community Development Directors. The plan shall be submitted prior to the issuance of a building permit for proposed project buildings and/or a phase of buildings. In addition, the contractor or builder shall designate a person or persons to monitor the Construction Management Plan components and provide their contact names and phone numbers. The Construction Management Plan shall include at least the following items and requirements: a. A set of comprehensive traffic control measures, including scheduling of major truck trips and deliveries to avoid peak traffic and pedestrian hours, detour signs if required, directional signs for construction vehicles, and designated construction access routes. b. Notification procedures for adjacent property owners and public safety personnel regarding when major deliveries and more intensive site work may be occurring, c. Location of construction staging areas which shall be located on the project site, for materials, equipment, and vehicles. d. Identification of haul routes for movement of construction vehicles that would minimize impacts on vehicular and pedestrian traffic, circulation and safety, and noise impacts to surrounding neighbors. e. The applicant shall ensure that the construction contractor employs the following noise reducing measures: i. Standard construction activities shall be limited to between 7:00 a.m. and 7:00 p.m. Monday through Saturday. ii. All equipment shall have sound- control devices no less effective than those provided by the manufacturer. No equipment shall have un- muffled exhaust pipes; and iii. Stationary noise sources shall be located as far from sensitive receptors as possible, and they shall be muffled and enclosed within temporary sheds, or insulation barriers or other measures shall be incorporated to the extent possible. f. Temporary construction fences to contain debris and material and to secure the site. g. Provisions for removal of trash generated by project construction activity. h. A process for responding to, and tracking, complaints pertaining to construction activity. i. Provisions for monitoring surface streets used for truck routes so that any damage and debris attributable to the trucks can be identified and corrected. 5.b Packet Pg. 62 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 27 j. Designated location(s) for construction worker parking. 94. Pursuant to Government Code §66474.9(b), the subdivider shall defend, indemnify and hold harmless the City and /or its agents, officers and employees from any claim, action or proceeding against the City and /or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this subdivision, and all actions relating thereto, including but not limited to environmental review. 95. Conditions relating to phasing and timing of infrastructure are approved as contained herein, or as approved by the Community Development and Public Works Directors during review of public improvement plans and final maps. 96. Financing and "fair share" contribution plans may be submitted for City Council review with any final map application. The City Council will have sole discretion as to any reimbursement and /or fee credit programs implemented with said final maps. Upon motion of Vice Mayor Ashbaugh, seconded by Council Member Christianson, and on the following roll call vote: AYES: Council Members Carpenter, Christianson and Rivoire, Vice Mayor Ashbaugh and Mayor Marx NOES: None ABSENT: None The foregoing resolution was adopted this 19th day of May 2015. an Marx ATTEST: 5.b Packet Pg. 63 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 28 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 ti r} t° , day of _ T" ," , 20 r 5.b Packet Pg. 64 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 29 Exhibit A LAIN OF FIALA I o IN PART) Y . 11 } RI 47 ice-- _ 10,415 SQFT !I r ~ _.,s • . [; ..•' rr., i x y OPEN SPACE / PROPOSIM OM SPACE fuh39"Off II ,. 3r SOFT, i 10,161 SA3'"F NET Oi £1,IENT k 1 x 1 `• 44' y Y..,6 2 SOFT ; I 14 fl Ij q SOFT wT 5B 7,694 SQFT jiij I I n.+8s SQF • ' I K rl![, v[n AAITO L7F 1°luury MAY ` q a osc a ja L I 170 p a E RIE PFWAiC h Ci4, ® x AM l II Il i,I11Y FASFNO i 1 ,4.00 SQFT 14.2&0 54FT SEN SPACE £FS+t1Gf% 1 r t s LANDS Or JMEL -- -_ y EAST HALF LOT 127` 73 DEEDS 173) N TM% I, 4 4 90 1091 1 INCH = 50 FEET SHEET SIZE; 11" x 17" Jones Homestead Lots I Graphic JONES RANCH — TRACT 3066 Cannon JONES HOMESTEAD Revision to VTTM 3066 ,..,.:,. c r tYOUT SAN LUI$ i19 {SpCy, CA 5.b Packet Pg. 65 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. 10620 (2015 Series) Page 30 Exhibit A Jones Homestead Lots Narrative Revision to VTTM 3066: APN 004 - 705 -008 The Jones family is requesting to have five (5) homestead lots remain on their property as opposed to the four lots originally submitted. Therefore Ambient Communities is requesting that the Vesting Tract Map be updated to include the additional lot for a total of 66 lots. This request is enhanced by the proposed solution for the option "A" road alignment for "B" Street and Tiburon which will best align Tiburon as the preferred option. Additionally the Jones family is requesting that, as the original owner, they retain ownership in fee of the entire property. The Jones family will grant an open space easement to the City of San Luis Obispo for the required open space areas on lot 1 and lot 3 of the proposed vesting tentative tract map. The Jones family will continue to maintain the property. If desired, the Jones family will create a Common Maintenance Agreement for the homestead lots to ensure the properties are properly maintained in perpetuity. 5.b Packet Pg. 66 Attachment: b - Resolution No. 10620 (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.38635.c Packet Pg. 67 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863•••5.c Packet Pg. 68 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.38635.c Packet Pg. 69 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.38635.c Packet Pg. 70 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.38635.c Packet Pg. 71 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.38635.c Packet Pg. 72 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) T.T.1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.38635.c Packet Pg. 73 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) T.T.1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.38635.c Packet Pg. 74 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) T.T.1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.38635.c Packet Pg. 75 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 0156030 DECIDUOUS TREES Acer rubrum / Red Maple Calodendrum capense / Cape Chestnut Ginkgo biloba / Maidenhair Tree Jacaranda mimosifolia / Jacaranda Koelreuteria paniculata / Golden Rain Tree Lagerstroemia fauriei / Crape Myrtle Liquidambar styraciflua / American Sweet Gum Pistacia chinensis / Chinese Pistache EVERGREEN TREES Arbutus x `Marina` / Arbutus Standard Geijera parviflora / Australian Willow Lagunaria patersonii / Primrose Tree Magnolia grandiflora / Southern Magnolia Metrosideros excelsus / New Zealand Christmas Tree Quercus suber / Cork Oak Ulmus parvifolia / Chinese Elm ACCENT TREES Cassia leptophylla / Gold Medallion Tree Cercis occidentalis / Western Redbud Crataegus phaenopyrum / Washington Hawthorn Lagerstroemia indica / Crape Myrtle Pyrus communis / Common Pear RIPARIAN TREES Cornus Species / Dogwood Juglans hindsii / California Black Walnut Platanus racemosa / California Sycamore Populus fremontii / Fremont Cottonwood Quercus agrifolia / Coast Live Oak Salix Species / Willow SHRUBS - 6` TO 10` Alyogyne huegelii / Blue Hibiscus Arctostaphylos Species / Manzanita Buddleja davidii / Butterfly Bush Carpenteria californica / Bush Anemone Ceanothus Species / Wild Lilac Cercocarpus betuloides / Mountain Mahogany Dendromecon harfordii / Island Bush Poppy Dodonaea viscosa / Hopseed Bush Fremontodendron californicum / California Flannel BushGarrya elliptica / Coast Silktassel Heteromeles arbutifolia / Toyon Leptospermum Species / Tea Tree Myrtus communis / Common Myrtle Rhamnus crocea / Redberry Rhus ovata / Sugar Bush Ribes aureum / Golden Currant Ribes speciosum / Fuchsia Flowering Gooseberry Romneya coulteri / Matilija Poppy Rosmarinus officinalis `Tuscan Blue` / Tuscan Blue Rosemary SHRUBS - 3` TO 5` Agave attenuata / Agave Anigozanthos flavidus / Kangaroo Paw Arctostaphylos Species / Manzanita Artemisia californica / California Sagebrush Baccharis pilularis / Dwarf Coyote Brush Callistemon viminalis `Little John` / Dwarf Weeping Bottlebrush Ceanothus Species / Wild Lilac Cistus Species / Rock Rose Elymus condensatus `Canyon Prince` / Canyon Prince Wild Rye Eriogonum arborescens / Santa Cruz Island Buckwheat Helictotrichon sempervirens / Blue Oat Grass Lavandula Species / Lavender Leonotis leonurus / Lion`s Tail Muhlenbergia rigens / Deer Grass Perovskia Species / Russian Sage Phlomis fruticosa / Jerusalem Sage Phormium tenax / New Zealand Flax Pittosporum tobira `Variegata` / Variegated Mock Orange Salvia Species / Sage SHRUBS/ GROUNDCOVER - TO 2` Achillea millefolium / Common Yarrow Arctostaphylos Species / Manzanita Baccharis pilularis / Dwarf Coyote Brush Ceanothus Species / Wild Lilac Chamaemelum nobile / Chamomile Correa Species / Australian Fuchsia Cotoneaster Species / Cotoneaster Deschampsia cespitosa / Tufted Hair Grass Dietes bicolor / Fortnight Lily Echeveria Species / Hens and Chicks Eriogonum fasciculatum / Common Buckwheat Festuca glauca / Blue FescueMimulus aurantiacus / Sticky Monkey Flower Myoporum parvifolium / Trailing Myoporum Rosmarinus officinalis `Prostratus` / Dwarf Rosemary Sedum Species / Stonecrop Symphoricarpos mollis / Creeping Snowberry Thymus Species / Thyme SHRUBS - RIPARIAN AREAS Baccharis pilularis / Dwarf Coyote Brush Carex Species / Ice Dance Sedge Distichlis Species / Saltgrass Heteromeles arbutifolia / Toyon Mimulus aurantiacus / Sticky Monkey Flower Mimulus guttatus / Seep Monkeyflower Myrica californica / Pacific Wax Myrtle Rhamnus californica / California Coffee Berry Ribes speciosum / Fuchsia Flowering Gooseberry Rosa californica / California Wild Rose Rubus ursinus / California Blackberry Sambucus mexicana / Mexican Elderberry TURF - CONCEPT PLANT SCHEDULE "B" STREET"A" STREETSPONZA STREETEXISTING TREES TO REMAINTTSchematic Planting PlanL15.c Packet Pg. 76 Attachment: c - Tentative Map (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) R _____ RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE FINAL MAP FOR TRACT 3066-PHASE 1 (3761 ORCUTT ROAD, SBDV-0067-2014) WHEREAS, the City Council made certain findings concerning the vesting tentative map for Tract 3066, as prescribed in Resolution No. 10620 (2015 Series); and WHEREAS, the subdivider has requested that the City approve a two-phase final map for the purposes of recording a first phase solely for financing purposes; and WHEREAS, restrictions have been placed on the recordation of the first phase of the final map so that no construction can occur or an additional phase of the subdivision be recorded until such time as all requirements, conditions and mitigation measures of said Resolution No. 10620 (2015 Series) are completed or appropriate securities are in place to guarantee their completion; and WHEREAS, approval of a final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. All requirements, conditions and mitigation measures of said Resolution No. 10620 (2015 Series) are deferred to the next phase of the final map. SECTION 2. Recordation of a phased final map for the sole purpose of financing is consistent with the intent of the tentative map approval requiring that the construction of all improvements be completed in a single phase. SECTION 3. The final map for Tract 3066-Phase 1 as shown on the attached Exhibit 1 is found to be in substantial compliance with the tentative map. SECTION 4. The offers of dedication shown on the Tract 3066-Phase 1 map are rejected without prejudice. Pursuant to this resolution and City Council Resolution No. 5370 (1984 Series) the Mayor or Vice-Mayor is hereby authorized to rescind this action at a later date and accept the easements on behalf of the public. SECTION 5. Approval of the final map for Tract 3066-Phase 1 is hereby granted. SECTION 6. The Mayor and City staff are authorized to take action necessary to carry out the intent of this resolution. 5.d Packet Pg. 77 Attachment: d - Draft Resolution Approving Final Map [Revision 3] (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Resolution No. (2016 Series) Page 2 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 Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher 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 ______________, _________. ____________________________________ Carrie Gallagher City Clerk 5.d Packet Pg. 78 Attachment: d - Draft Resolution Approving Final Map [Revision 3] (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#1310075.e Packet Pg. 79 Attachment: e - Exhibit 1 to Attachment d [Revision 1] (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#1310075.e Packet Pg. 80 Attachment: e - Exhibit 1 to Attachment d [Revision 1] (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#1310075.e Packet Pg. 81 Attachment: e - Exhibit 1 to Attachment d [Revision 1] (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#1310075.e Packet Pg. 82 Attachment: e - Exhibit 1 to Attachment d [Revision 1] (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) 1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#1310075.e Packet Pg. 83 Attachment: e - Exhibit 1 to Attachment d [Revision 1] (1525 : Final Map Approval for Tract 3066-1, 3761 Orcutt Road) Page intentionally left blank. Meeting Date: 12/13/2016 FROM: Carrie Gallagher, City Clerk and Christine Dietrick, City Attorney Prepared By: Lee Price, MMC, Special Projects Manager SUBJECT: BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT OF INTEREST CODE RECOMMENDATION 1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s Conflict of Interest Code”; and 2. Approve a Procedure for Assessing and Waiving Late Fines for Statements of Economic Interest. DISCUSSION The Political Reform Act (PRA) of 1974, Government Code §§ 81000 et seq., contains a general prohibition that “no public official or employee at any level of state or local government shall make, participate in making or in any way attempt to use his/her official position to influence a governmental decision in which s/he knows or has reason to know s/he has a financial interest.” The PRA requires that local agencies adopt a formal Conflict of Interest Code, review its Code biennially, and make amendments, if needed. A Conflict of Interest Code requires certain employees, who are most likely to be involved in government decision-making and where potential conflicts may be present, to file an annual disclosure form. The purpose of this form is to inform the employee and the public of potential conflicts of interest and situations where disqualification is mandated. Proposed amendments to the Code are reflected in the attached Resolution (Attachment B). Terms of the Code The Fair Political Practices Commission (FPPC) advises that agencies are required to incorporate the provisions of California Code of Regulation §18730 by reference, along with appendices providing disclosure categories and listing of designated positions, to constitute the formation and promulgation of a conflict of interest code. Regulation §18730 outlines the references to statutes and regulations that govern designated positions, disclosure categories, time of filing, contents of, period covered, manner of reporting, how interests are to be reported, definition of terms, disqualification as well as prohibition on receipt of honoraria, gifts, loans, and travel payments. The incorporation of Regulation §18730 constitute the adoption and promulgation of a conflict of interest code within the meaning of § 87300 of the PRA. The FPPC notes that the responsibility for determining if a code meets the specifications of Gov’t Code §89309 rests with the code reviewing body (i.e. the City Council). Proposed Disclosure Categories The FPPC, the agency assigned to administer and interpret the PRA, has provided guidance, instructions and “model” disclosure categories to assist in the review of the conflict of interest 6 Packet Pg. 84 codes. Disclosure categories have been drafted with the intent to narrowly tailor categories toward an employee’s duties and area of authority (Attachment C, Appendix 1). The FPPC has provided advice related to the development of disclosure categories and the need for “striking an appropriate balance between heading off potential conflicts of interest and an individual’s right to privacy.” The Commission notes that the most common problem in local codes is the requirement that employees disclose financial interests that are not related to the employee’s duties and area of authority. Utilizing the FPPC’s “model” disclosure categories and examples from other agencies, proposed disclosure categories 2-4 specify that employees need only disclose financial interests related to their job assignments or areas of authority. Proposed Designated Positions The FPPC advises that local codes should enumerate positions that “make or participate in the making” of government decisions, acting within the authority of his or her position, votes on a matter, obligates, or commits the agency to any course of action which may foreseeably have a material financial effect on any financial interest. Additionally, it further defines that employees “participate in governmental decisions” when - acting within the authority of his or her position and without significant and substantive or intervening review - the official negotiates, advises, or makes recommendations to the decision-maker regarding the governmental decision. The FPPC advises that local codes that require disclosure of economic interests have been found to be appropriate when they are narrowly tailored, noting that manual, clerical, or ministerial positions should not be designated. A staff level review of the current list of designated positions has been completed and a summary of positions to be added, removed, or have substi tute titles are identified in Attachment A. The List of Designated Positions has been revised to and positions have been assigned disclosure categories to match job assignments and areas of authority (Attachment C, Appendix 2). Regardless of whether a position is designated, per the City’s Code of Ethics policies, all City employees are required to disqualify him/herself from participation in a decision, when acting in the authority of the position, if there would be a financial interest. Council Members and appointed officials (including the City Manager, City Attorney and members of the Planning Commission) are not designated employees under this conflicts of interest code because they are statutorily required to file conflicts disclosures by Government Code Section 87200 (known as “87200 filers”). The conflicts of interest code supplements those statutory requirements as to employees and members of City advisory bodies who are not 87200 filers. It is important to note that the list of filers includes members of the San Luis Obispo Parking Authority and the San Luis Obispo Public Financing Authority. Because the City Council also serves as both authorities, members of the Council are reminded to include these positions on their Assuming, Annual and Leaving Statements of Economic Interest. 6 Packet Pg. 85 Consultants The FPPC Regulations (Government Code §87100), define a “consultant” as an individual who, pursuant to a contract with a local agency, “makes a governmental decision.” A “consultant” may be outside special counsel, investment advisors or contract employees providing specialized services. A “governmental decision” could include any of the following: 1. Approve a rate, rule, or regulation; 2. Adopt or enforce a law; 3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; 4. Authorize the agency to enter into, modify, or renew a contract provided it is the type of contract that requires agency approval; 5. Grant agency approval to a contract that requires agency approval and to which the agency is a party, or to the specifications for such a contract; 6. Grant agency approval to a plan, design, report, study, or similar item; 7. Adopt, or grant agency approval of, policies, standards, or guid elines for the agency, or for any subdivision thereof. Department Directors, when authorized to hire a consultant by contract, are required to determine if the consultant comes within the definition of “consultant” under the Political Reform Act. Consultants who meet the definition shall agree contractually to complete and file (and shall require any other person doing work under the contract) to complete and file a "Form 700 - Statement of Economic Interest" (SEI) with the City Clerk. Consultants shall not make or participate in making or in any way attempt to use his/her position to influence a governmental decision in which he/she knows, or has reason to know, that he/she has a financial interest other than the compensation promised by the contract. The City Attorney’s Office is in the process of amending the template for consultant services agreements to clarify these requirements. New Positions With respect to newly created and temporary positions, the department director shall determine if a newly created position will make or participate in making governmental decisions on behalf of the City and, if so assign a disclosure category conforming to the position’s range of duties. Determinations shall be made in writing and provided to the City Clerk and the Human Resources Department. Such written determination shall include a description of the newly created position's duties and, based upon that description, a statement of the extent of disclosure requirements appropriate given the range of duties. All such determinations are public records and shall be retained for public inspection in the same manner and location as this conflict -of- interest code. (Gov. Code§ 81008.) The City Clerk's office shall promptly enter the actual position title of the newly created position into its electronic Form 700 record management system and ensure that the name of any individual(s) holding the newly created position is entered under that position title in the record management system. Additionally, within 90 days of the creation of a newly created position that must file statements of economic interests, the City shall update this conflict -of-interest code to add the actual position title in its list of designated positions. (Gov. Code§ 87306.) 6 Packet Pg. 86 Electronic Filing The process for annual filing of SEI forms was automated this year. In March, the City Clerk’s Office entered into a performance services agreement with NetFile, Inc. to provide an SEI records management system. NetFile developed and maintains a system that permits the City of San Luis Obispo and users authorized by the City to electronically file their SEI forms. The system allows the City to provide designated filers internet access so that they may securely log on, enter data and upload to NetFile’s secure site electronic formats of SEI forms. Filers are able to print a copy for their records and access earlier validated electronically entered forms, which makes it easier to file and saves time for filers. The system also streamlines what was once a very paper-intensive process for the City Clerk’s Office. The introduction of NetFile appears to have also reduced the number of late filers. Procedure for Assessing and Waiving fines for late filing of Statements of Economic Interest (Form 700) The PRA also mandates specific deadlines for the filing of Statements of Economic (Form 700). In accordance with the Act and the Regulations of the FPPC, anyone filing a Form 700 after a prescribed deadline may be fined. The FPPC has established guidelines for th e assessment and/or waiver of fines, in accordance with Government Code §91013 and staff is recommending that a written procedure be adopted to document the process. The City Clerk has a variety of duties under the PRA which are outlined in the attached Draft Procedure for Assessing and Waiving Late Fines for SEI forms (Attachment C). This procedure is modeled after the FPPC guidelines, defines “good cause” and is similar to policies adopted by other cities in California. In the past, City Clerks have been reluctant to fine late filers but factually, the Clerk has no authority to waive the fine for late filing without good cause. Historically, some filers delay filing their SEI form for months, despite numerous reminders from the City Clerk’s Office, which means filers are in violation of State law. This procedure establishes consequences for late filers in addition to late fines, including disciplinary action for designated City employees who file late or not at all, as well as provides that the City Council may remove any advisory body member who files late or not at all. CONCURRENCES The Human Resources Department and all other City Departments provided input on the revised list of designated filers. FISCAL IMPACT There is no fiscal impact to adopting the Code. ALTERNATIVES The City Council may make additional or other changes to the City’s Conflict of Interest Code. 6 Packet Pg. 87 Attachments: a - Summary of Amendments to List b - Resolution 2016 c - Exhibit Appendices - Conflict of Interest Code Review 2016 d - Draft Policy and Form 6 Packet Pg. 88 SUMMARY OF AMENDMENTS TO THE LIST OF DESIGNATED POSITIONS Position Title Substitutions: Former Title: New Title/s: Director of Finance and Information Technology Finance Director Information Technology Director Finance Operations Manager Accounting Manager/Controller Utilities Service Manager Water Resource Program Manager New Positions Added: Members of the Administrative Review Board Members of the Construction Board of Appeals Assistant City Clerk Administrative Citation Hearing Officer Principal Planner Purchasing Analyst Code Enforcement Supervisor Positions to be Deleted: City Traffic Engineer Wastewater Treatment Plant Supervisor 6.a Packet Pg. 89 Attachment: a - Summary of Amendments to List [Revision 2] (1533 : Conflict of Interest Code) R ______ RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE CITY’S CONFLICT OF INTEREST CODE WHEREAS, the Political Reform Act (Government Code Section 81000 et seq.) requires local government agencies to promulgate and adopt conflict of interest codes; and WHEREAS, Resolution No. 10582 (2014 Series) adopted on December 2, 2014 amended the City’s Conflict of Interest Code by updating the List of Designated Positions and Disclosure Categories (Exhibit A); and WHEREAS, the Political Reform Act requires that the City Council review its Conflict of Interest Code biennially to determine whether amendments are required; and WHEREAS, a review of City’s Disclosure Categories and the List of Designated Positions reveals that amendments are necessary to the List of Designated Positions and clarifications needed as it relates to consultants; and WHEREAS, Council Members and appointed officials are not designated employees under this conflicts of interest code because they are statutorily required to file conflicts disclosures by Government Code Section 87200 (known as “87200 filers”) and this conflicts code is intended to supplement those statutory requirements as to employees and members of certain advisory bodies who are not 87200 filers. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo does hereby resolve as follows: SECTION 1. Resolution No. 10582 (2014 Series) is hereby rescinded. SECTION 2. Pursuant to the Political Reform Act of 1974, Government Code Section 87300 et seq., and Section 18730 of Title 2 of the California Code of Regulations, the City Council hereby adopts the model conflict of interest code promulgated by the Fair Political Practices Commission of the State of California as set forth in Section 18730 of Title 2 of the California Code of Regulations, which model conflict of interest code is incorporated herein by reference, and which, together with the City’s Disclosure Categories and List of Designated Positions collectively constitutes the City of San Luis Obispo’s Conflict of Interest Code, as set forth in Exhibit A and Appendices 1 and 2 of this Resolution. As the model conflict of interest code set forth in Section 18730 of Title 2 of the California Code of Regulations is amended from time to time by State law, regulatory action of the Fair Political Practices Commission, or judicial determination, the portion of the City’s Conflict of Interest Code comprising the model conflict of interest code shall be deemed automatically amended without further action to incorporate by reference all such amendments to the model conflict of interest code. 6.b Packet Pg. 90 Attachment: b - Resolution 2016 [Revision 2] (1533 : Conflict of Interest Code) Resolution No. ____ (2016 Series) Page 2 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 Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher 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 ______________, _________. ____________________________________ Carrie Gallagher City Clerk 6.b Packet Pg. 91 Attachment: b - Resolution 2016 [Revision 2] (1533 : Conflict of Interest Code) CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA CONFLICT OF INTEREST CODE ............................................................................................... 2 Section 1. Authority ........................................................................................................................ 2 Section 2. Purpose ........................................................................................................................... 2 Section 3. Code Reviewing Body ................................................................................................... 2 Section 4. Filing Officer ................................................................................................................. 2 Section 5. Code Administrator ........................................................................................................ 2 Section 6. Section 18730 of the California Code of Regulations ................................................... 2 Section 7. Disclosure CateGories ................................................................................................... 3 Section 8. Designated Positions ...................................................................................................... 3 EXHIBIT A Incorporation of California Code of Regulations by Reference ................................ 4 Section 1. Definitions...................................................................................................................... 4 Section 2. Designated Employees. .................................................................................................. 4 Section 3. Disclosure Categories. ................................................................................................... 4 Section 4. Statements of Economic Interests: Place of Filing. ....................................................... 5 Section 5. Statements of Economic Interests: Time of Filing. ....................................................... 5 Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. ................................ 5 Section 6. Contents of and Period Covered by Statements of Economic Interests. ........................ 6 Section 7. Manner of Reporting. ..................................................................................................... 6 Section 8. Prohibition on Receipt of Honoraria. ............................................................................. 8 Section 8.1 Prohibition on Receipt of Gifts in Excess of $470440460. ......................................... 8 Section 8.2. Loans to Public Officials. ........................................................................................... 8 Section 8.3. Loan Terms. .............................................................................................................. 10 Section 8.4. Personal Loans. ......................................................................................................... 11 Section 9. Disqualification. ........................................................................................................... 11 Section 9.3. Legally Required Participation. ................................................................................ 12 Section 9.5. Disqualification of State Officers and Employees. ................................................... 12 Section 10. Disclosure of Disqualifying Interest. ......................................................................... 12 Section 11. Assistance of the Commission and Counsel. ............................................................. 12 Section 12. Violations. .................................................................................................................. 13 APPENDIX 1 Disclosure Categories............................................................................................ 14 APPENDIX 2 List of Designated Positions.................................................................................. 16 6.c Packet Pg. 92 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 2 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA SECTION 1. AUTHORITY Government Code Section 87300 requires the City of San Luis Obispo to adopt a Conflict of Interest Code. SECTION 2. PURPOSE The purpose of the City of San Luis Obispo Conflict of Interest Code is to incorporate by reference the terms of Section 18730 of the California Code of Regulations pertaining to Conflict of Interest Codes. SECTION 3. CODE REVIEWING BODY The City Council of the City of San Luis Obispo shall be the Code Reviewing Body for the City of San Luis Obispo Conflict of Interest Code. SECTION 4. FILING OFFICER The City Clerk of the City of San Luis Obispo shall be the Filing Officer for the City of San Luis Obispo Conflict of Interest Code. All persons occupying designated positions shall file Statements of Economic Interests with the City Clerk. The City Clerk shall make statements available for public inspection and reproduction, shall retain all statements pursuant to State Law, and shall perform all other duties and responsibilities of the Filing Officer pursuant to State Law. SECTION 5. CODE ADMINISTRATOR The City Manager, or his/her designee, shall be the Code Administrator for the City of San Luis Obispo Conflict of Interest Code. The Code Administrator may promulgate further rules and regulations, which are not inconsistent with the Code, the Political Reform Act, or any regulation of the Fair Political Practices Commission; to administer the Conflict of Interest Code, including non-substantive alterations to the Code. Non-substantive alterations shall be limited to the following: (A) The reclassification or renaming of previously designated positions. (B) The deletion of a position for which the classification has been abolished. (C) Definitional or operational provisions in conformity to a statutory amendment, a regulation of the Fair Political Practices Commission, or a decision of a Court of competent jurisdiction. SECTION 6. SECTION 18730 OF THE CALIFORNIA CODE OF REGULATIONS Section 18730 of Title 2, Division 6, of the California Code of Regulations, as set forth in Exhibit A, and any amendment to it duly adopted by the Fair Political Practices Commission, along with any Appendices, are hereby incorporated by reference and constitutes the Conflict of Interest Code of the City of San Luis Obispo. 6.c Packet Pg. 93 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 3 SECTION 7. DISCLOSURE CATEGORIES Such persons holding designated positions shall report economic interests as set forth in Appendix 1. SECTION 8. DESIGNATED POSITIONS The positions listed in Appendix 2 are Designated Positions. Officers and employees holding those positions are Designated Positions and are deemed to make, or participate in the making of, decisions, which may foreseeably have a material effect on a financial interest. Consultants may be Designated Positions, as determined by the Code Administrator. The Members of the City Council, Mayor, City Manager, City Attorney, City Treasurer, Members of the Planning Commission, other public officials who manage public investments, and candidates for any offices at election, are required to file Statements of Economic Interest pursuant to Government Code Section 87200 et seq. 6.c Packet Pg. 94 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 4 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA EXHIBIT A INCORPORATION OF CALIFORNIA CODE OF REGULATIONS BY REFERENCE Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation of a conflict of interest code within the meaning of Government Code Section 87300 or the amendment of a conflict of interest code within the meaning of Government Code Section 87306 if the terms of this regulation are substituted for terms of a conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of article 2 of chapter 7 of the Political Reform Act, Government Code Sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Government Code Section 87100, and to other state or local laws pertaining to conflicts of interest. The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows: SECTION 1. DEFINITIONS. The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code. SECTION 2. DESIGNATED EMPLOYEES. The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on economic interests. SECTION 3. DISCLOSURE CATEGORIES. This code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their economic interests pursuant to article 2 of chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq. In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply: (A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency; 6.c Packet Pg. 95 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 5 (B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Political Reform Act, Government Code Section 87200; and (C) The filing officer is the same for both agencies.1 Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of economic interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those economic interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the economic interests set forth in a designated employee’s disclosure categories are the kinds of economic interests which he or she foreseeably can affect materially through the conduct of his or her office. SECTION 4. STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING. The code reviewing body shall instruct all designated employees within its code to file statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency’s conflict of interest code.2 SECTION 5. STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING. (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. (C) Annual Statements. All designated employees shall file statements no later than April 1. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. SECTION 5.51. STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE. Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or leaving office statement. (A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following: 6.c Packet Pg. 96 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 6 (1) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. SECTION 6. CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC INTERESTS. (A) Contents of Initial Statements. Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements. Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 months prior to the date of assuming office or the date of being appointed or nominated, respectively. (C) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later, or for a board or commission member subject to Government Code Section 87302.6, the day after the closing date of the most recent statement filed by the member pursuant to 2 Cal. Code Regs. Section 18754. (D) Contents of Leaving Office Statements. Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office. SECTION 7. MANNER OF REPORTING. Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investments and Real Property Disclosure. When an investment or an interest in real property3 is required to be reported,4 the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; 3. The address or other precise location of the real property; 6.c Packet Pg. 97 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 7 4. A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000). (B) Personal Income Disclosure. When personal income is required to be reported,5 the statement shall contain: 1. The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000); 3. A description of the consideration, if any, for which the income was received; 4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received; 5. In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan. (C) Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported,6 the statement shall contain: 1. The name, address, and a general description of the business activity of the business entity; 2. The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000). (D) Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee, or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee’s position with the business entity. (E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal. 6.c Packet Pg. 98 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 8 SECTION 8. PROHIBITION ON RECEIPT OF HONORARIA. (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part time member of the governing board of any public institution of higher education, unless the member is also an elected official. Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section. This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Government Code Section 89506. SECTION 8.1 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF $440460470. (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than $440460470 in a calendar year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part time member of the governing board of any public institution of higher education, unless the member is also an elected official. Subdivisions (e), (f), and (g) of Government Code Section 89503 shall apply to the prohibitions in this section. SECTION 8.2. LOANS TO PUBLIC OFFICIALS. (A) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer’s agency has direction and control. (B) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (C) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. 6.c Packet Pg. 99 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 9 pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (E) This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time. 4. Loans made, or offered in writing, before January 1, 1998. SECTION 8.3. LOAN TERMS. (A) Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (B) This section shall not apply to the following types of loans: 1. Loans made to the campaign committee of the elected officer. 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January 1, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code. 6.c Packet Pg. 100 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 10 SECTION 8.4. PERSONAL LOANS. (A) Except as set forth in subdivision (B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances: 1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. (B) This section shall not apply to the following types of loans: 1. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in this title. 3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. (C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code. SECTION 9. DISQUALIFICATION. No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on: (A) Any business entity in which the designated employee has a direct or indirect investment worth two thousand dollars ($2,000) or more; (B) Any real property in which the designated employee has a direct or indirect interest worth two thousand dollars ($2,000) or more; 6.c Packet Pg. 101 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 11 (C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating five hundred dollars ($500) or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $440460470 or more provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made. SECTION 9.31. LEGALLY REQUIRED PARTICIPATION. No designated employee shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section. SECTION 9.52. DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES. In addition to the general disqualification provisions of Section 9, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: (A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value one thousand dollars ($1,000) or more. SECTION 10. DISCLOSURE OF DISQUALIFYING INTEREST. When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest. SECTION 11. ASSISTANCE OF THE COMMISSION AND COUNSEL. Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 and 2 Cal. Code Regs. Sections 18329 and 18329.5 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue an y formal or informal opinion. This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 – 91014. In addition, a decision in relation to which 6.c Packet Pg. 102 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 12 a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003. NOTE: Authority cited: Section 83113, Government Code. Reference Sections 87103(e), 87300, 87302, 89501, 89502 and 89503, Government Code. 1 Designated employees who are required to file statements of economic interests under any other agency’s conflict of interest code, or under article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original statement is signed and verified by the designated employee as if it were an original. See Government Code Section 81004. 2 See Government Code Section 81010 and 2 Ca. Code of Regs. Section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 3 For purposes of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. 4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual’s spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5 A designated employee’s income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency. 6 Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. 6.c Packet Pg. 103 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 13 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA APPENDIX 1 DISCLOSURE CATEGORIES CATEGORY 1 (Broad Disclosure) All investments, business positions, and sources of income, including gifts, loans, and travel payments from sources doing business in the jurisdiction of the City. All interests in real property within the jurisdiction, including property located within a two-mile radius of any property owned or used by the City. CATEGORY 2 (Disclosure Related to Contracting/Purchasing) All investments, business positions, and income, including gifts, loans, and travel payments, from sources that provide leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services, of the type associated with the employee’s job assignment. CATEGORY 3 (Disclosure Related to Licensing/Permitting) All investments, business positions, and income, including gifts, loans, and travel payments, from sources that are subject to the regulatory, permit, or licensing authority of, or have an application for a license or permit pending before the City, and is subject the employee’s area of authority. CATEGORY 4 (Disclosure Related to Grants/Service Providers) All investments, business positions, and income, including gifts, loans, and travel payments, or income from a nonprofit organization, if the source is of the type to receive grants and other monies from or through the City, and subject to the employee’s area of authority. CATEGORY 5 (Consultant Disclosure) Must report investments, business positions, and income from business entities located in, planning to do business in, or doing business with the City of San Luis Obispo subject to the following: No financial interest need be reported unless it is in of from a source which provides services, supplies, material, machinery, or equipment of the type utilized by or which is subject to the regulatory permit or licensing authority of the department by which the consultant is employed. If a department director determines that a particular consultant need not file a disclosure statement a written statement including a description of the consultant’s duties and the reason for exemption shall be filed with and retained in the same manner as the contract. NEWLY CREATED/TEMPORARY POSITIONS With respect to newly created and temporary positions, the department director shall determine if a newly created position will make or participate in making governmental decisions on behalf of the City and, if so assign a disclosure category conforming to the position’s range of duties. Determinations shall be made in writing on an FPPC Form 804 and provided to the City Clerk and the Human Resources Department. 6.c Packet Pg. 104 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 14 CONFLICT OF INTEREST CODE CITY OF SAN LUIS OBISPO, CALIFORNIA APPENDIX 2 LIST OF DESIGNATED POSITIONS DRAFT CHANGES – 2016 CODE REVIEW Committees/Commissions/Authorities: Members of the Architectural Review Commission 3 Members of the Administrative Review Board 1 Members of the Construction Board of Appeals 1 Members of the Cultural Heritage Committee 3 Members of the Housing Authority 1 Members of the Human Relations Committee 4 Members of the Investment Oversight Committee 1 Members of the Parking Authority 1 Members of the Promotional Coordinating Committee 2, 4 Members of the Public Financing Authority 1 Administration Department Assistant City Manager 1 Assistant City Clerk 2 City Clerk 2 Economic Development Manager 2 Natural Resources Manager 2 Special Projects Manager 2, 3 Tourism Manager 2, 4 City Attorney’s Office Administrative Citation Hearing Officer 1 Assistant City Attorney 1 Community Development Department Building and Safety Supervisor 2, 3 Chief Building Official 2, 3 Code Enforcement Supervisor 2, 3 Deputy Director of Community Development 1 Director of Community Development 1 Housing Program Manager 2, 3 Principal Planner 2, 3 Senior Planner 2, 3 Special Projects Manager 2, 3 Formatted: Centered 6.c Packet Pg. 105 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 15 DESIGNATED POSITIONS DISCLOSURE CATEGORY Finance & Information Technology Department Accounting Manager/Controller 2, 3 Budget Manager 2 Director of Finance and Information Technology 1 Finance Operations Manager 2 Fire Department Deputy Fire Chief 2, 3 Fire Chief 1 Fire Marshal 2, 3 Human Resources Department Director of Human Resources 2, 4 Human Resources Manager 2, 4 Information Technology Department Information Technology Director 1 Information Technology Manager 2 Parks & Recreation Department Director of Parks and Recreation 1 Recreation Manager 2 Recreation Supervisor (Aquatics & Facilities) 2 Police Department Chief of Police 1 Communication and Records Manager 2 Neighborhood Outreach Manager 2 Police Captain 2, 3 Public Works Department City Traffic Engineer 2, 3 Deputy Director of Public Works 2, 3 Director of Public Works 1 Fleet Maintenance Supervisor 2 Parking Services Manager 2, 3 Senior Civil Engineer 2, 3 Supervising Civil Engineer 2, 3 Transit Manager 2, 3 Transportation Manager 2, 3 Urban Forest Supervisor/City Arborist 2, 3 6.c Packet Pg. 106 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) San Luis Obispo Conflict of Interest Code Page 16 Utilities Department Deputy Director of Utilities 2, 3 Director of Utilities 1 Environmental Programs Manager 2, 3 Laboratory Manager 2 Utilities Business Manager 2 Utilities Projects Manager 2 Utilities Services Manager 2 Wastewater Treatment Plant Supervisor 2 Water Distribution System Supervisor 2 Water Resources Program Manager 2 Water Resources Recovery Facility Supervisor 2 Water Treatment Plant Supervisor 2 Whale Rock Reservoir Supervisor 2 Other Positions: Housing Authority Executive Director 1 Consultants 5 6.c Packet Pg. 107 Attachment: c - Exhibit Appendices - Conflict of Interest Code Review 2016 [Revision 4] (1533 : Conflict of Interest Code) Office of the City Clerk Procedure for Assessing and Waiving Late Fines for Statements of Economic Interest (Form 700) The Political Reform Act, codified in the California Government Code, mandates specific deadlines for the filing of Statements of Economic (Form 700). In accordance with the Act and the Regulations of the Fair Political Practices Commission (FPPC), a nyone filing a Form 700 after a prescribed deadline may be fined. This procedure provides a guideline for the assessment and/or waiver of fines, in accordance with GC §91013. PROCEDURE:  The City Clerk, as the Filing Officer, shall supply the necessary forms, manuals and deadlines for filing in accordance with the Political Refor m Act.  The City Clerk shall determine whether required documents have been filed and, if so, whether they conform on their face with the requirements of the Political Reform Act.  The City Clerk shall notify promptly all persons who have failed to file statement in the form and at the time required by the Political Reform Act.  Any person who files a Form 700 after the deadline imposed is liable for a late fine pursuant to Government Code Section 91013. Fines issued pursuant to this section shall not exceed $10 per day to a maximum of $100.  The City Clerk shall notify the City Manager and Department Heads of non-filers in their departments. The City Manager and Department Heads may consider disciplinary action on designated City employees who file untimely or not at all.  The City Clerk shall notify the City Manager, City Attorney and appropriate Department Head of non-filing by any consultant.  The City Clerk shall notify the City Council and the appropriate Department Head and Departmental Liaison of non-filing by any advisory body member. The City Council may remove any advisory body member who fails to file untimely or not at all.  The City Clerk has the authority to fully or partially waive a fine if, on an impartial basis, it is determined that the late filing was not willful. Ho wever, no liability may be waived if a statement is not filed within 30 days after specific written notice of the late filing has been sent .  The City Clerk will consider a request to waive the payment of a late fine if the request is based on “good cause.” A written request for waiver of a late fine must be submitted to the City Clerk. The request may be submitted on the “Request for Waiver of Liability” 6.d Packet Pg. 108 Attachment: d - Draft Policy and Form (1533 : Conflict of Interest Code) form or in an alternative format, provided that it includes specificity and detail to support the request. The waiver request must be signed by the person required to file the particular statement upon which the late filing fine was assessed.  “Good Cause”, as defined by the FPPC is as follows: a)Incapacitation for Medical Reasons - Adequate documentation consists of a doctor’s, psychologist’s, therapist’s, chiropractor’s, or other medical provider’s statement giving the nature of the incapacitation, the date(s) thereof, and the individual’s name. This information may also be provided for an immediate family member’s illness. b)Hospitalization- Adequate documentation consists of a copy of the hospital bill or doctor’s statement showing the patient’s name and the date(s) of the hospitalization. c)Accident Involvement - If medical attention is provided and results in the late filing, a copy of the hospital bill, emergency room service, or doctor’s statement, showing the patient’s name and date(s) and time(s) of medical attention, is adequate documentation. If the accident involvement results in delay or vehicle disablement which causes the late filing, adequate documentation consists of a police report showing the individual’s name, the date and time of the accident, and, if applicable, whether or not the vehicle was disabled. d)Loss or unavailability of record - The loss or unavailability of records due to a fire, flood, theft or similar reason. Adequate documentation shall consist of a police, fire or insurance report, containing the date of the occurrence and the extent of the loss or damage. e)Other Unique Reasons - The City Clerk may waive any late fine for other good cause as shown. These include compelling reasons beyond the filer's control and must be defined in writing with specificity and detail.  Late fines will not be waived for reasons such as: Vacation Filer’s busy season or workload Spouse/Assistant failed to file the form on behalf of the filer Filer needed additional time to gather information in order to file Filer is waiting for professional assistance fr om financial advisor/CPA/FPPC before filing Filer asserts that he or she has not been late before, but promises to file on time in the future Form was accidentally misplaced on desk, home or in vehicle Filer did not receive a “reminder” to file his/her annual statement after receiving formal notice 6.d Packet Pg. 109 Attachment: d - Draft Policy and Form (1533 : Conflict of Interest Code)  The City Clerk will consider partial or full waivers for late filers described below, however a stricter standard may be applied to persons who filed late statements within the two years prior to the late filing in question: Filers who received inadequate or erroneous notification of their filing requirement, but who filed within 30 days after receiving adequate notice. Full details concerning the type of notice received or lack thereof must be provided in writing. Filers serving in an acting officeholder capacity who filed within 30 days of the first adequate notice. Filers who left office without receiving adequate notice of their filing requirement, but who filed within 30 days of receiving such notice Filers who wrote prior to the filing deadline, or who had someone write on their behalf, indicating that the filing would be late for good cause and who filed as soon as possible. 6.d Packet Pg. 110 Attachment: d - Draft Policy and Form (1533 : Conflict of Interest Code) STATE FORM NO. EXECUTED ON , 20 AT State Signature of Filer/Responsible Officer/Treasurer, etc.Type or Print Name Signature of Candidate or Officeholder, if applicable.Type or Print Name AFTER REVIEWING THE "GOOD CAUSE" WAIVER RESTRICTION GUIDELINES, IDENTIFY AND EXPLAIN REASON FOR LATE FILING AND INCLUDE SUPPORTING DOCUMENTATION. PERIOD COVERED ON STATEMENT OR REPORT ID NUMBER I declare and certify under penalty of perjury that the foregoing information on this request for waiver is true and correct. I hereby request that the liability for failing to file a statement on time required by the Political Reform Act to be waived. Month, Day , City CITY ZIP CODE CITY OF SAN LUIS OBISPO REQUEST FOR WAIVER OF LIABILITY - FORM PRD-1 (FOR CITY CLERK USE ONLY) CITY CLERK CITY OF SAN LUIS OBISPO 990 PALM STREET SAN LUIS OBISPO, CA 93401 (805) 781-7100 FILER NAME (Committee / Candidate / Major Donor / Lobbying Entity, etc.) ADDRESS (Number and Street)TELEPHONE NUMBER 6.d Packet Pg. 111 Attachment: d - Draft Policy and Form (1533 : Conflict of Interest Code) ELECTRONIC PAPER Date Filed Document ID Liability $$ TOTAL LIABILITY $ ELECTRONIC PAPER WAIVED ________________ REDUCED $________$________ DENIED ________________ Electronic Filing: ___ On Time ___ Not Yet Filed ___ Not Qualified Non-Filer: ___ 1st ___ 2nd ___ Referred Action Justification/Comment: F1 F2 F3 F4 S1 S2 EXPLAINATION FOR LATE FILING (Continued): Form No. Reviewers comments: WAIVER ACTION Date Due Period Covered CITY CLERK USE ONLY 11/2016 6.d Packet Pg. 112 Attachment: d - Draft Policy and Form (1533 : Conflict of Interest Code) Page intentionally left blank. Meeting Date: 12/13/2016 FROM: Carrie Gallagher, City Clerk SUBJECT: SCHEDULE OF CITY COUNCIL MEETINGS FOR 2017 RECOMMENDATION 1. Cancel the Regular City Council meetings of August 1 and December 19, 2017; and 2. Reschedule the Regular City Council meeting of July 4 to July 5, 2017. DISCUSSION The City Council’s regular meetings are scheduled for the first and third Tuesday of every month and in the event that a regular meeting of the council falls on a legal holiday, then the regular meeting shall be held at the same place and time on the next succeeding working day pursuant to Section 1.1.2.1 of the Council Meeting Guidelines & Procedures. A copy of the proposed 2017 meeting schedule is attached as (Attachment A). Summer and Winter Council Meeting Schedule Since 1994, it has been the practice of the City Council to cancel a regular meeting in the months of August and/or December. This practice allows the Council an opportunity to plan vacations, reduce meeting absences, and maximize public participation. Historically the first meeting in August has been cancelled and when the second meeting in December falls close to holidays, the second meeting in December has been cancelled. Rescheduling of the first meeting in July is necessary due to the July 4th Legal Holiday. The draft schedule proposes to cancel the first meeting in August and the second meeting in December and reschedule the July 4th meeting. Additionally, four Special Meeting dates related to the 2017-2019 Budget have been added including the Community Forum on January 10, 2017, the Goal Setting Workshop on January 28, 2017, the Preliminary Budget Workshop on May 15, 2017. Budget deliberations are scheduled for June 1 and 6, 2017 with final budget adoption occurring on June 20, 2017. A June 27, 2017 meeting has been calendared in the event that Council needs additional time to conclude budget deliberations. ALTERNATIVES Council could choose a different date in August and/or December to cancel or choose not to cancel either of these meetings. Attachments: a - 2017 Schedule of City Council Meetings 7 Packet Pg. 113 SMTWT F S SMTWT F S SMTWT F S 1234567 1234 1234 891011121314 567891011 567891011 15 16 17 18 19 20 21 12 13 14 15 16 17 18 12 13 14 15 16 17 18 22 23 24 25 26 27 28 19 20 21 22 23 24 25 19 20 21 22 23 24 25 29 30 31 26 27 28 26 27 28 29 30 31 SMTWT F S SMTWT F S SMTWT F S 1 123456 123 2345678 78910111213 45678910 9 101112131415 14151617181920 11121314151617 16 17 18 19 20 21 22 21 22 23 24 25 26 27 18 19 20 21 22 23 24 23/ 30 24 25 26 27 28 29 28 29 30 31 25 26 27 28 29 30 SMTWT F S SMTWT F S SMTWT F S 1 *12345 12 2345678 6789101112 3456789 9 101112131415 13141516171819 10111213141516 16 17 18 19 20 21 22 20 21 22 23 24 25 26 17 18 19 20 21 22 23 23/ 30 24/ 31 25 26 27 28 29 27 28 29 30 31 24 25 26 27 28 29 30 SMTWT F S SMTWT F S SMTWT F S 1234567 1234 12 891011121314 567891011 3456789 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 16 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 *19 20 21 22 23 29 30 31 26 27 28 29 30 24 / 31 25 26 27 28 29 30 *Recommended for possible cancellation 2017-2019 Budget Related Special Meetings (June 27, 2017 only if needed) 2017 City Council Schedule OCTOBER NOVEMBER DECEMBER M A R C HF E B R U A R YJ A N U A R Y A P R I L M A Y J U N E J U L Y A U G U S T S E P T E M B E R 7.a Packet Pg. 114 Attachment: a - 2017 Schedule of City Council Meetings (1530 : City Council Meeting Schedule 2017) Meeting Date: 12/13/2016 FROM: Michael Codron, Community Development Director Prepared By: Steven Orozco, Planning Technician SUBJECT: LEASE AGREEMENT WITH THE COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO FOR THE OPERATION OF THE PRADO DAY CENTER. RECOMMENDATION 1. Approve a lease agreement between the City of San Luis Obispo and the Community Action Partnership of San Luis Obispo (CAPSLO) through December 31, 2017 for use of the Prado Day Center; and 2. Authorize City Manager to approve any monthly lease extensions after December 31, 2017. DISCUSSION Background In 1994 the City Council gave conceptual approval to use City property on Prado Road near the Corporation Yard for the purpose of providing daytime services and meals to homeless residents in San Luis Obispo County. The City agreed to lease the Prado Road site for a period of five years, with options to extend by mutual agreement. The Prado Day Center was subsequently constructed, with financial help from the City, the County, and donations of money and labor from the community at large. The Center opened for operation on September 15, 1997. The Interfaith Coalition for the Homeless (ICH) provided administrative oversight of the Prado Day Center for more than two years, while CAPSLO managed day-to-day operations. When it became apparent that the administrative oversight had become an unacceptable burden to the organization’s volunteers, after thoughtful discussions, the CAPSLO board agreed to assume the responsibility for the lease of the Prado Road site, as well as be coming the sub-recipient for City and County Community Development Block Grant (CDBG) funds. Under these conditions, the lease documents were officially transferred with all terms and conditions remaining the same including the termination date of November 30, 2001. In mutual agreement, the lease between the City of San Luis Obispo and CAPSLO was subsequently extended twice with an ultimate expiration date of November 30, 2007. Previous Lease Agreement In 2007, the City Council approved a three-year lease agreement with CAPSLO. The new lease had an initial term through December 1, 2010 (Attachment C). The agreement was then followed by two additional three-year periods by mutual agreement of the parties which expired on November 30, 2010 and then on November 30, 2016. New and Final Lease Agreement Nineteen years later CAPSLO is requesting to enter into the final lease agreement for the Prado 8 Packet Pg. 115 Day Center, before the Center is relocated and expanded at 40 Prado (Attachment B). Construction of the new $5.4 million Homeless Services Center at 40 Prado is expected to start January 2017 and open by fall 2017. The shelter will be able to accommodate 100 beds with a maximum capacity of 150 and include both day services currently provided at the Prado Day Center and overnight services from the Maxine Lewis Memorial Shelter. Given that CAPSLO has provided exceptional services to the homeless at the Prado Day Center since 2000, and at Maxine Lewis Memorial Shelter since 1989, staff is confident that this lease renewal is crucial for continuing day services to homeless residents until 40 Prado opens. This new lease agreement shall not exceed thirteen months, expiring on December 31, 2017 with no option for long term renewal due to start of the City’s Water Resource Recovery Facility (WRRF) Project in early 2018 (Attachment A). However, should 40 Prado and the WRRF Project both be delayed, the City and CAPSLO may discuss a month to month lease agreement until WRRF construction begins, to the approval of the City Manager. The Lessee may terminate the lease at any time with thirty (30) days’ notice, should transfer to the new Homeless Services Center occurs prior to that date. ENVIRONMENTAL REVIEW The project is exempt from environmental review per Section 15061 (b)(3) General Rule of the CEQA Guidelines. The project is an action to extend a previously approved lease agreement for operation of a homeless services day center. It can be seen with certainly that the proposed action to extend this lease agreement will have no significant effect on the environment. No changes to land use or existing use will occur. FISCAL IMPACT Currently, the City leases 43 Prado to CAPSLO at no charge for the purposes of maintaining the Prado Day Center. The City will continue to assume the responsibility for water, sewer, and trash services while the property is leased to CAPSLO. The services funded by the General Fund amounts to approximately $20,000 per year. ALTERNATIVE The Council could choose to deny the new lease agreement, however given CAPSLO’s experience operating the Prado Day Center for 20 years and the timeframe remaining before 40 Prado is operating, this option is not recommended. Attachments: a - New Lease Agreement for the Prado Day Center b - CAPSLO Lease Request Letter c - Previous Prado Day Center Lease 8 Packet Pg. 116 1 LEASE OF A PORTION OF REAL PROPERTY LOCATED AT 43 PRADO ROAD FOR THE PRADO DAY CENTER APN 053-051-045 This lease is made and entered into this 1st day of December , 2016 by and between the CITY OF SAN LUIS OBISPO (hereinafter “CITY”), a municipal corporation, and the COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO (hereinafter “CAPSLO”), a community based non-profit organization. WITNESSETH: WHEREAS, the CITY entered into a lease with CAPSLO on November 17, 2007, for the operation of a homeless services day center (Prado Day Center) located on 43 Prado Road and known as a portion of APN 053-051-045, San Luis Obispo County, California; and WHEREAS, CAPSLO is the County’s Head Start and Community Action program agency and the administrator of the Maxine Lewis Memorial Shelter and has administered the Prado Day Center for the last nineteen (19) years; and WHEREAS, CAPSLO has the expertise, service agreements, and work force required to provide the necessary services to run the Prado Day Center; and WHEREAS, CAPSLO’s previous lease offered two, three year extensions which expired on November 30, 2016; and WHEREAS, CAPSLO is in the process of constructing a new homeless care facility located at 40 Prado Road (“40 Prado”). Likewise, the CITY is in the process of upgrading its Water Resource Recovery Facility (“WRFF”) which will require demolition and use of the Prado Day Center site; and WHEREAS, CAPSLO has requested a new lease, not to exceed thirteen (13) months, expiring on December 31, 2017, with no option for renewal. It is the intention of the parties for 8.a Packet Pg. 117 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 2 this lease term to coincide with the completion of the new facility at 40 Prado and/or the need for the Prado Day Center location for the CITY’s WRRF upgrade project. NOW, THEREFORE, in consideration of the promises and agreements, covenants and conditions stated herein, the parties agree as follows: 1. PREMISES LEASED City leases to CAPSLO that portion of APN #053-051-045, real property as shown on Exhibit A to this lease, subject to any rights and/or easements as may be legally recorded with the County Recorder’s Office for the County of San Luis Obispo. 2. TERM The term of this lease shall commence on December 1, 2016 and extend for a period until December 31, 2017. Prior to that date, CAPSLO may terminate lease with thirty (30) days’ notice. 3. RENEWAL This new lease agreement shall not exceed thirteen months, expiring on December 31, 2017 with no option to extend due to the start of construction of the City’s WRRF Project in early 2018. However, should 40 Prado and the WRRF Project both be delayed, the City and CAPSLO may discuss a month to month lease agreement subject to the approval of the City Manager. CAPSLO acknowledges that any month to month arrangement is expressly subject to the timing and status of the City’s WRFF upgrade project. CAPSLO 4. RENTAL Lease of this property for the purposes described herein shall be at no charge to the CAPSLO. CAPSLO agrees to provide homeless services at no charge to the City and community as a public benefit. 8.a Packet Pg. 118 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 3 5. UTILITIES CAPSLO shall make all arrangements for any payment due for all utilities and services furnished to or used by it on the leased premises. However, the City shall provide water, sewer , and trash services at no cost to CAPSLO. The City assumes no responsibility and makes no warranties regarding any utilities, and CAPSLO hereby releases from liability and holds the City harmless in this regard. 6. PROPERTY OR POSSESSORY INTEREST TAX If this lease should result in the assessment of taxes for this real property, including, but not limited to, possessory interest taxes, CAPSLO agrees that any tax liability will result in an increase in the amount of rent due to the City, equal to the amount of any such tax liability. 7. USE OF PROPERTY CAPSLO shall be entitled to use said property for the purpose of operation of a homeless day services center, and for no other purpose. Operation of the center shall consist of the provision of social services to the homeless, including food services. CAPSLO agrees that the use of said property as described shall be for the sole purpose of supporting CAPSLO’s non-profit homeless services and programs and in no way shall be used for “for profit” activities. CAPSLO further agrees that a full description of the use of said property, and activities and improvements occurring on the property will be provided to the City Administrative Officer annually, and, any change in use will be submitted to the City for approval prior to commencement of that use or improvement. CAPSLO acknowledges that it is currently in possession of the premises and accepts them “as-is.” Pursuant to California Civil Code section 1938, City hereby states that the premises has not undergone an inspection by a Certified Access Specialist (CASp). 8. ALTERATIONS AND REPAIRS CAPSLO shall be responsible for any and all alterations, improvements, or repairs to the property necessary for the orderly conduct of CAPSLO’s operations. CAPSLO shall provide to the City for approval, prior to commencement of any work or activity, a complete description of any physical alteration of the property. CAPSLO further agrees to remove and return to original, any alterations to said property made by CAPSLO as requested by the City upon termination of 8.a Packet Pg. 119 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 4 this Lease at CAPSLO’s sole cost. CAPSLO shall be responsible for any and all repairs of said property and improvements there-on. Any and all improvements and alterations to said property shall be made in conformance to applicable laws and requirements. CAPSLO shall be responsible for obtaining any necessary permits and the cost of such permits as may be necessary to complete the improvements and/or alterations. 9. MAINTENANCE OF PROPERTY CAPSLO shall maintain property in an orderly and first class condition at all times, satisfactory to the City Administrative Officer or his/her designee. CAPSLO shall maintain adjacent properties free of litter resulting from CAPSLO’s activities. CAPSLO shall at all items maintain property in a manner consistent with any applicable Federal, State, or City laws, regulations, or grant requirements and in such a manner as to ensure the protection of the public, CAPSLO’s employees, volunteers, invitees, and the environment. 10. TRAFFIC CONTROL CAPSLO shall be responsible for control of traffic related to CAPSLO’s operations. CAPSLO shall establish adequate controls, traffic flow, parking locations and procedures so as not to interfere with the flow of traffic on Prado Road and the Water Reclamation Facility (WRF) access road. CAPSLO shall provide and maintain the controls, clearances and visibility necessary to ensure the safe and orderly ingress and egress of the public, employees, volunteers and invitees to and from the property. All vehicles shall be properly parked within the boundaries of the leased property. No vehicles shall be parked on the WRF access road. CAPSLO shall at all times ensure a minimum clearance of twenty (20) feet of available roadway for Fire access on the WRF access road. 11. COORDINATION WITH CITY CAPSLO shall coordinate with the City any activities which have potential to impact in any way City operations. Upon notification by the City, CAPSLO shall immediately cease any operation deemed to interfere with the conduct of the orderly business of the City in its operations. 8.a Packet Pg. 120 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 5 12. PERMITS CAPSLO shall maintain any and all permits necessary for the conduct of the CAPSLO’s business at the site as required by Law. 13. INDEPENDENT CONTRACTOR CAPSLO and all of its agents, representatives, and participants in any manner connected with CAPSLO’s operations shall be independent contractors or volunteers for CAPSLO and shall not for any purpose be considered as employees or agents of City. 14. SUBJECT TO ALL LAWS AND BINDING This lease shall be subject to and subordinate to all Federal, State and City laws, rules, regulations and grant requirements, including any and all conditions imposed by the City Council. 15. TERMINATION FOR CAUSE Each of the terms, covenants and conditions of this lease are mutual and dependent, and any breach of any of the said terms, covenants or conditions shall constitute grounds for t he termination, cancellation or forfeiture of this lease. 16. INDEMNIFICATION CAPSLO shall defend, indemnify and save harmless the City and its agents, officers and employees against any and all claims, demands, damages or liabilities (whether or not caused by negligence) including civil or criminal fines, arising out of or relating to any of the following: a) any damage, injury or death suffered by any person or corporation and caused by any act or omission of CAPSLO, its agents, employees, volunteers, tenants, invitees or assigns under this agreement; b) any damage caused by any act or omission of CAPSLO, its agents, employees, volunteers, tenants or assigns under this agreement to any property of the City and its agents, officers and employees; c) any damage, injury or death suffered by CAPSLO, its agents, employees, volunteers, tenants, invitees or assigns under this agreement, except for claims and demands 8.a Packet Pg. 121 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 6 resulting from the proven sole gross negligence or willful misconduct of the City and its agents, officers, and employees; d) CAPSLO’s violation of any law, any regulation or any term or condition of any permit. CAPSLO shall also defend, indemnify and save harmless the City and its agents, officers and employees against any and all expense of investigating and defending against such claims and demands, including, but not limited to, attorney’s fees and costs. 17. INSURANCE CAPSLO shall provide insurance, including but not limited to workers compensation insurance, including additional coverage for Automobiles. CITY shall be named as an additional insured. 18. ASSIGNMENT CAPSLO shall not assign this lease in whole or in part nor sublet the premises in whole or in part without the prior written consent of the City. If the City consents to a sublease, CAPSLO shall remain responsible for the performance of all the terms, covenants and conditions of this lease including and in particular the use of the property as described in Paragraph 7 of this agreement. If CAPSLO assigns or subleases said lease or any portion thereof without the prior written consent of the City, then said sublease or assignment shall be void, and the option of the City, this lease shall immediately cease and terminate. No interest of CAPSLO in this lease shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment: a) If CAPSLO is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors; b) If, in any proceeding or action in which CAPSLO is a party, a receiver is appointed with authority to take possession of the premises. Any involuntary assignment shall constitute a default by CAPSLO and City shall have the right to elect to terminate this lease. 8.a Packet Pg. 122 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 7 19. INSPECTION The City shall have the right at all reasonable times to enter upon the property for the purpose of inspecting the same, determining that all the terms, covenants and conditions of this lease are being kept and performed by CAPSLO. 20. ENFORCEMENT The City Manager or his/her designee shall have all necessary authority to enforce the terms, covenants and conditions of this lease. Upon notice of violation of any of the terms, covenants and conditions of this lease, CAPSLO shall take whatever actions are necessary to correct the violation. All violations shall be corrected within thirty (30) days from the date of Notice and CAPSLO shall provide to the City a report outlining the cause of the violation and corrective measures taken to remedy the violation and prevent its recurrence. Significant violation shall be defined as any violation of the terms, covenants and conditions of this lease occurring and noticed more than two times in any calendar year, or, violation and notice of violation of any three terms, covenants and conditions of this lease occurring within an calendar ear, or, failure to correct a violation of any of the terms, covenants and conditions of this lease within 90 days from the date of Notice. Significant violations as defined herein will result in a hearing before the Council of the City of San Luis Obispo to determine appropriate remedies up to and including termination of this lease as defined under Paragraph 15 of this agreement. 21. LIENS CAPSLO shall keep the premises free from any liens arising out of any work performed for, materials furnished to, or obligations incurred by CAPSLO and shall hold City harmless against the same. 22. APPEALS Actions and determinations by the City Manager or his/her designee, relative to the terms, covenants and conditions of this lease may be appealed to the City Council pursuant to the provisions of Municipal Code Chapter 1.20. 8.a Packet Pg. 123 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 8 23. NOTICE Any notice required or permitted to be given or served under the terms hereof shall be considered delivered when sent registered, return receipt requested, through the United States mail to: City CAPSLO City Manager Community Action Partnership of City of San Luis Obispo San Luis Obispo County, Inc. 990 Palm Street 1030 Southwood Drive San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 24. ENTIRE AGREEMENT This lease and attached Exhibit A contains the entire agreement of the parties on the matters covered and it may not be modified except by written agreement. 8.a Packet Pg. 124 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 9 IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date first above written. CITY OF SAN LUIS OBISPO A Municipal Corporation By: Heidi Harmon, Mayor ATTEST: Carrie Gallagher, City Clerk APPROVED AS TO FORM: Christine Dietrick, City Attorney CAPSLO COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO COUNTY, INC. By: Elizabeth Steinberg, CEO 8.a Packet Pg. 125 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 10 8.a Packet Pg. 126 Attachment: a - New Lease Agreement for the Prado Day Center [Revision 4] (1515 : Prado Day Center Lease Agreement) 8.b Packet Pg. 127 Attachment: b - CAPSLO Lease Request Letter (1515 : Prado Day Center Lease Agreement) LEASE OF A PORTION OF REAL PROPERTY LOCATED AT 45 PRADO ROAD FOR THE PRADO DAY CENTER APN 53- 051 -45 This lease is made and entered into this day of &h , 2008by and between the CITY OF SAN LUIS OBISPO (hereinafter "CITY "), a municipal corporation, and the ECONOMIC OPPORTUNITY COMMISSION OF SAN LUIS OBISPO (hereinafter EOC "), a community based non - profit organization. WITNESSETH: WHEREAS, the CITY entered into a lease with the EOC, dated January 12, 2000, for the operation of a homeless services day center ( Prado Day Center) located on 43 Prado Road and known as a portion of APN 53- 051 -45, San Luis Obispo County, California; and WHEREAS, this lease agreement including two three (3) year extensions will expire on December 1, 2007 and the EOC has requested a new lease for an additional three (3) year period; and WHEREAS, the EOC is the County's Head Start and Community Action program agency and the administrator of the Maxine Lewis Memorial Emergency shelter and has administered the Prado Day shelter for the last seven (7) years; and WHEREAS, the EOC has the expertise, service agreements and work force required to provide the necessary services to run the Homeless Services Day Center; NOW, THEREFORE, in consideration of the promises and agreements, covenants and conditions stated herein, the parties agree as follows: PREMISES LEASED City leases to Lessee that portion of APN #53- 051 -45, real property as shown on Exhibit A to this lease, subject to any rights and/or easements as may be legally recorded with the County Recorders Office for the county of San Luis Obispo. MIN 8.c Packet Pg. 128 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease 2. TERM The term of this lease shall commence on December 1, 2007 and extend for a period of three (3) years. 3. RENEWAL This lease may be renewed for two (2) additional three (3) year periods, each renewal period to be by mutual agreement of the Parties. 4. RENTAL Lease of this property for the purposes described herein shall be at no charge to the Lessee. Lessee agrees to provide homeless services at no charge to the City and community as a public benefit. 5. UTILITIES Lessee shall make all arrangements for any payment due for all utilities and services furnished to or used by it on the leased premises. However, the City shall provide water, sewer, and trash services at no cost to Lessee. The City assumes no responsibility and makes no warranties regarding any utilities, and Lessee hereby holds the City harmless in this regard. 6. PROPERTY OR POSSESSORY INTEREST TAX If this lease should result in the assessment of taxes for this real property, including, but not limited to, possessory interest taxes, Lessee agrees that any tax liability will result in an increase in the amount of rent due to the City, equal to the amount of any such tax liability. USE OF PROPERTY Lessee shall be entitled to use said property for the purpose of operation of a homeless day services center, and for no other purpose. Operation of the center shall consist of the provision of social services to the homeless, including food services. Lessee agrees that the use of said property as described shall be for the sole purpose of supporting Lessee's non - profit homeless services and programs and in no way shall be used for "for profit" activities. Lessee further agrees that a full description of the use of said property, and activities and improvements occurring on the property will be provided to the City Administrative Officer annually, and, any 8.c Packet Pg. 129 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease change in use will be submitted to the City for approval prior to commencement of that use or improvement. 8. ALTERATIONS AND REPAIRS Lessee shall be responsible for any and all alterations, improvements, or repairs to the property necessary for the orderly conduct of Lessee's operations. Lessee shall provide to the City for approval, prior to commencement of any work or activity, a complete description of any physical alteration of the property. Lessee further agrees to remove and return to original, any alterations to said property made by Lessee as requested by the City upon termination of this Lease at Lessee's sole cost. Lessee shall be responsible for any and all repairs of said property and improvements there -on. Any and all improvements and alterations to said property shall be made in conformance to applicable laws and requirements. Lessee shall be responsible for obtaining any necessary permits and the cost of such permits as may be necessary to complete the improvements and/or alterations. 9. MAINTENANCE OF PROPERTY Lessee shall maintain property in an orderly and first class condition at all times, satisfactory to the City Administrative Officer or his /her designee. Lessee shall maintain adjacent properties free of litter resulting from Lessee's activities. Lessee shall at all items maintain property in a manner consistent with any applicable Federal, State, or City laws, regulations, or grant requirements and in such a manner as to ensure the protection of the public, lessee's employees, volunteers, invitees, and the environment. 10. TRAFFIC CONTROL Lessee shall be responsible for control of traffic related to Lessee's operations. Lessee shall establish adequate controls, traffic flow, parking locations and procedures so as not to interfere with the flow of traffic on Prado Road and the Water Reclamation Facility (WRF) access road. Lessee shall provide and maintain the controls, clearances and visibility necessary to ensure the safe and orderly ingress and egress of the public, employees, volunteers and invitees to and from the property. All vehicles shall be properly parked within the boundaries of the leased property. No vehicles shall be parked on the WFR access road. Lessee shall at all times ensure a minimum clearance of twenty (20) feet of available roadway for Fire access on the WRF access road. 8.c Packet Pg. 130 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) 1 Prado Day Center Lease 11. COORDINATION WITH CITY i Lessee shall coordinate with the City any activities which have potential to impact in any way City operations. Upon notification by the City, Lessee shall immediately cease any operation deemed to interfere with the conduct of the orderly business of the City in its operations. 12. PERMITS Lessee shall maintain any and all permits necessary for the conduct of the Lessee's business at the site as required by Law. 13. INDEPENDENT CONTRACTOR Lessee and all of its agents, representatives, and participants in any manner connected with Lessee's operations shall be independent contractors or volunteers for Lessee and shall not for any purpose be considered as employees or agents of City. 14. SUBJECT TO ALL LAWS AND BINDING This lease shall be subject to and subordinate to all Federal, State and City laws, rules, regulations and grant requirements, including any and all conditions imposed by the City Council. 15. TERMINATION FOR CAUSE Each of the terms, covenants and conditions of this lease are mutual and dependant, and any breach of any of the said terms, covenants or conditions shall constitute grounds for the termination, cancellation or forfeiture of this lease. 16. INDEMNIFICATION Lessee shall defend, indemnify and save harmless the City and its agents, officers and employees against any and all claims, demands, damages or liabilities (whether or not caused by negligence) including civil or criminal fines, arising out of or relating to any of the following: a) any damage, injury.or death suffered by any person or corporation and caused by any act or omission of Lessee, its agents, employees, volunteers, tenants, invitees or assigns under this agreement; 0 8.c Packet Pg. 131 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) i Prado Day Center Lease b) any damage caused by any act or omission of Lessee, its agents, employees, volunteers, tenants or assigns under this agreement to any property of the City and its agents, officers and employees; C) any damage, injury or death suffered by Lessee, its agents, employees, volunteers, tenants, invitees or assigns under this agreement , except for claims and demands resulting from the sole negligence or willful misconduct of the City and its agents, officers, and employees; d) Lessee's violation of any law, any regulation or any term or condition of any permit. Lessee shall also defend, indemnify and save harmless the City and its agents, officers and employees against any and all expense of investigating and defending against such claims and demands, including, but not limited to, attorney's fees and costs. 17. INSURANCE Lessee shall provide insurance, including but not limited to workers compensation insurance, if necessary, as described in Exhibit B to this lease, Insurance Requirements for Operation & Maintenance Contracts, including additional coverage for Automobile. 18. ASSIGNMENT Lessee shall not assign this lease in whole or in part nor sublet the premises in whole or in part without the prior written consent of the City. If the City consents to a sublease, Lessee shall remain, responsible for the performance of all the terms, covenants and conditions of this lease including and in particular the use of the property as described in Paragraph 7 of this agreement. If Lessee assigns or subleases said lease or any portion thereof without the prior written consent of the City, then said sublease or assignment shall be void, and the option of the City, this lease shall immediately cease and terminate. . No interest of Lessee in this lease shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment: a) If lessee is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors; b) If a writ of attachment or execution is levied on this lease; C) If, in any proceeding or action in which Lessee is a party, a receiver is appointed with authority to take possession of the premises. 8.c Packet Pg. 132 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease Any involuntary assignment shall constitute a default by lessee and City shall have the right to elect to terminate this lease. 19. INSPECTION The City shall have the right at all reasonable times to enter upon the property for the purpose of inspecting the same, determining that all the terms, covenants and conditions of this lease are being kept and performed by Lessee. 20. ENFORCEMENT The City Administrative Officer or his/her designee shall have all necessary authority to enforce the terms, covenants and conditions of this lease. Upon notice of violation of any of the terms, covenants and conditions of this lease, Lessee shall take whatever actions are necessary to correct the violation. All violations shall be corrected within thirty (30) days from the date of Notice and Lessee shall provide to the City a report outlining the cause of the violation and corrective measures taken to remedy the violation and prevent its recurrence. Significant violation shall be defined as any violation of the terms, covenants and conditions of this lease occurring and noticed more than two times in any calendar year, or, violation and notice of violation of any three terms, covenants and conditions of this lease occurring within an calendar ear, or, failure to correct a violation of any of the terms, covenants and conditions of this lease within 90 days from the date of Notice. Significant violations as defined herein will result in a hearing before the Council of the City of San Luis Obispo to determine appropriate remedies up to and including termination of this lease as defined under Paragraph 15 of this agreement. 21. LIENS Lessee shall keep the premises free from any liens arising out of any work performed for, materials furnished to, or obligations incurred by Lessee and shall hold City harmless against the same. 22. TERMINATION WITHOUT CAUSE 8.c Packet Pg. 133 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease The City Council may by motion terminate this agreement at its sole discretion after a public hearing held upon thirty (30) days written notice to Lessee. Said termination shall be effective ninety (90) days after City council action to terminate the Lease. 23. APPEALS Actions and determinations by the city Administrative Officer or his /her designee, relative to the terms, covenants and conditions of this lease may be appealed to the City Council pursuant to the provisions of Municipal code chapter 1.20. 24. NOTICE Any notice required or permitted to be given or served under the terms hereof shall be considered delivered when sent registered, return receipt requested, through the United States mail to: City City Administrative Officer City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 805) 781 -7114 25. ENTIRE AGREMENT Lessee Economic Opportunity Commission 1030 Southwood Drive San Luis Obispo, CA 93401 This lease and attached Exhibits A and B contains the entire agreement of the parties on the matters covered and it may not be modified except by written agreement. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date first above written. CITY OF SAN LUIS OBISPO 8.c Packet Pg. 134 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) Prado Day Center Lease City Clerk APPROVED AS TO FORM: an P. Lowell City Attorney A Municipal Corporation b. I ' I - Mayor ECONOMIC OPPORTUNITY COMMISSION OF SAN LUIS OBISPO 9 8.c Packet Pg. 135 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) 8.c Packet Pg. 136 Attachment: c - Previous Prado Day Center Lease (1515 : Prado Day Center Lease Agreement) Meeting Date: 12/13/2016 FROM: Monica Irons, Director of Human Resources Prepared By: Brittani Roltgen, Administrative Assistant SUBJECT: AUTHORIZE CITY MANAGER TO ENTER INTO A SOLE SOURCE CONTRACT WITH CENTRE FOR ORGANIZATION EFFECTIVENESS (COE) FOR EMPLOYEE AND LEADERSHIP DEVELOPMENT PROGRAM RECOMMENDATION 1. Authorize the issuance of a purchase order to the COE in the amount of $125,000; and 2. Authorize the City Manager to execute a sole source agreement with the COE not to exceed $125,000 for fiscal year 2016-17 to continue a comprehensive employee and leadership development and core competency program for the City of San Luis Obispo. DISCUSSION At the 2013-14 Budget Supplement Council authorized one-time costs of $170,000, expended during 2014-15 and 2015-16, to fund the creation of an employee development and leadership program for the City. The program has been launched through a partnership with the COE that provides expertise in the area of organizational development, assessments, training delivery, and coaching and consultation on organizational development related issues. The allocated funds were spent by the end of June 2016 and provided over 100 City employees (an employee may be a participant in multiple trainings or academies) with a variety of training and development opportunities. At the 2016-17 Budget Supplement Council authorized ongoing costs of $125,000 annually to maintain the comprehensive, integrated employee development and leadership program to ensure the City is preparing the next generation of employees to seamlessly continue quality service to the community. As described in the Significant Operating Program Change (SOPC) request (Attachment A) approved by Council as part of the Supplement, the City will utilize a proven competency based program developed by the COE. The proposed offerings in 2016-17 are paced to align with other priorities in the City, to compliment work already done, to ensure a strong foundation of the competencies and principles with broad saturation so employees are “speaking the same language”, and to take advantage of regional offerings for cost effectiveness. Sole Source Justification According to the City Financial Management Manual 295-1, Purchasing Guidelines, sole source contracts for consultant services may be pursued “If it is determined that it is in the best interest of the City for services to be provided by a specific consultant – with contract terms, work scope and compensation to be determined based on direct negotiations – contract award will be made by the Council”. The County of San Luis Obispo issued Request for Proposal #1235 for Employee University Training and Development Consultant on September 19, 2013. The COE responded to that request by submitting a comprehensive proposal. The City’s Human 9 Packet Pg. 137 Resources Director participated in evaluating the proposals submitted to the Council and was very impressed with the services offered by the COE. The County and City discussed potential economies of scale if the two agencies used the same vendor to provide profes sional development services and Council authorized the use of COE on August 19, 2014. Furthermore, having regional alignment in terms of professional development assists with creating synergies and opportunities for knowledge sharing and relationship building. Feedback on the services provided by the COE has been very favorable. Further, many of the trainings the City anticipates taking advantage of in 2016-17 are being offered through the COE on a regional basis, thus reducing the per person cost of this training and development. Issuing a new Request for Proposal and potentially contracting with another provider would delay critical training and development and potentially increase per person costs and reduce the effort to not only have a reliable and capable City workforce, but a regionally aligned one as well. The Centre’s “one-stop shop” approach, meaning they design and deliver the training, manage much of the logistics, and provide expert advice on professional development efforts, is very efficient. FISCAL IMPACT Council authorized $125,000 annually to maintain the comprehensive, integrated employee development and leadership program at the 2016-17 Budget Supplement. Therefore, there is no fiscal impact of authorizing the City Manager to execute this sole source contract. ALTERNATIVE Issue an RFP for these services. Council could choose to direct staff to issue an RFP for these services. This alternative may result in other proposals being submitted, but considering the City has experienced excellent results through this consulting group that specializes in local government workforce development, it is not likely that this effort would result in a different outcome in terms of price or the effectiveness of the program. The timeframe required to develop and solicit proposals will further delay much needed employee development and succession planning. Attachments: a - COE SOPC b - COE Contract 16-17 9 Packet Pg. 138 SIGNIFICANT OPERATING PROGRAM CHANGE – GENERAL GOVERNMENT SUSTAIN INVESTMENT IN EMPLOYEE DEVELOPMENT AND LEADERSHIP (LEADERSHIP AND LEARNING ACADEMY) Summary of Change: Provide funding for employee and leadership development on an ongoing basis. Specifically, fund a continuing partnership with the Centre for Organization Effectiveness (COE) and other consultants to ensure the City provides the training and development opportunities necessary to ensure continuous service to the community. Fiscal Impact: Ongoing cost of $125,000 beginning in 2016-17 will ensure continued regular offerings in key public sector competencies to ready the workforce for future opportunities. Service Level Impact: Continued investment in employee and leadership development impacts the Council’s other important objective of Fiscal Responsibility and Sustainability. The Council adopted Fiscal Responsibility Philosophy commits to excellent service, fiscal health, informed decision making, shared responsibility, increased transparency, aligned investments, diversified and aligned revenue sources, addressing long-term unfunded liabilities, and continued efficiency and effectiveness. The City’s Leadership and Learning Academy and partnership with the COE ensures City employees are well- equipped for current and future demands by focusing on the development of proven public sector competencies, preparation for supervisory, program management, and leadership roles in complex environments. KEY OBJECTIVES 1. Maintain the well-received “one-stop shop”, comprehensive, integrated employee development and leadership program to ensure the City is preparing the next generation of employees to seamlessly continue quality service to the community. 2. Continue to offer academies that prepare employees for critical supervisory, program management, and leadership roles to ensure smooth transitions as staff are hired into the organization and/or take on new opportunities in the organization. 3. Continue to provide assessments and training that enhance individual contributors’ communication, customer service, and team skills to ensure high quality service delivery to the community. 4. Enhance performance through collaborative organizational wide projects. 5. Improve resilience, change management, transition, conflict resolution, customer service, and communication skills through “open” trainings available to all employees; positively influencing turnover, retention, promotion, and customer service. 6. Strengthen regional collaboration by working with the County of San Luis Obispo and other local cities (such as the City of Santa Maria) to minimize costs and maximize synergies. 7. Support a sustainable Healthy and Smart organizational culture that recognizes the value of, and appropriately invests in, employee development as the “multiplier” of its investment in strategy, technology, budget, and processes. 9.a Packet Pg. 139 Attachment: a - COE SOPC [Revision 2] (1517 : Centre for Org Effectiveness) SIGNIFICANT OPERATING PROGRAM CHANGE – GENERAL GOVERNMENT SUSTAIN INVESTMENT IN EMPLOYEE DEVELOPMENT AND LEADERSHIP (LEADERSHIP AND LEARNING ACADEMY) 8. Align human resources systems such as recruitment and selection, performance management, employee recognition, classification and compensation, etc. to support the identified public sector competencies used in the training and academies. 9. Enhance the City’s ability to recruit and retain critical talent by regularly providing training and development opportunities that prepare the workforce to meet future demands. 10. Develop performance measures that help measure the effectiveness of these training and development opportunities. Shift from a focus of number of employees participating to outcomes such as number of employees selected for opportunities in the organization (promotional as well as cross functional project teams), measured improvement in themes identified in the employee engagement survey, and reduced turnover. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE 1. At the 2013-15 Financial Plan Supplement Council authorized one-time costs of $170,000 in 2014- 15, expended during 2014-15 and 2015-16, to fund the creation of an employee development and leadership program for the City. The program has been launched through a partnership with the Centre for Organization Effectiveness who provides expertise in the area of organizational development, assessments, training delivery, and coaching and consultation on organizational development related issues. The allocated funds will be spent by the end of June 2016 and have provided over 100 City employees (an employee may be a participant in multiple trainings or academies) with training and development opportunities as identified below: a) Developed, administered, and summarized results of an employee engagement survey in October 2014. Sixty-six percent of City employees participated, providing constructive feedback on ten categories, including overall satisfaction. Feedback received was foundational in designing the training and programs delivered to City employees. b) Employee Engagement Survey results were shared with Department Heads in a workshop facilitated by the Centre to ensure buy-in, initiate action plans to address areas for improvement, and to introduce the leadership team to the key concepts that would be presented in the academies and trainings. c) Employee Engagement Survey results were presented to all employees in January 2015. d) 35 participants graduated from Supervisor Transition and Readiness Training (S.T.A.R.T) in March 2015 e) 29 participants graduated from Supervisor Academy in December 2015, using the knowledge gained to prepare and present reports on team building, best practices for supervisors, tips on developing a personal leadership style, and recognizing an organizational “bright spot” (the City’s Neighborhood Officer program). f) 30 participants graduated from the Leadership Lab in 2015 presenting three distinct projects related to improving the City’s Onboarding program (implementation in process), refining the City’s two year financial planning process (recommendations 9.a Packet Pg. 140 Attachment: a - COE SOPC [Revision 2] (1517 : Centre for Org Effectiveness) SIGNIFICANT OPERATING PROGRAM CHANGE – GENERAL GOVERNMENT SUSTAIN INVESTMENT IN EMPLOYEE DEVELOPMENT AND LEADERSHIP (LEADERSHIP AND LEARNING ACADEMY) available for review by Budget Manager and team members willing to support implementation), and a re-imagination of the City’s Community Academy. g) 57 participants in the Generations training resulting in clearer understanding of generational differences, how it impacts communication, team building, and work motivations. h) 114 participants in training using the DISC Behavior Profile as a foundation for learning more about effective communication among various behavioral styles in February 2016. i) 82 participants in the Leadership and Learning Academy Spring Programs in March 2016. The Spring Programs offered four workshops on the following topics: Delegation, Time Management, Building Resilience and Making a Successful Transition. j) Approximately 60 graduates from the START, Supervisor Academy, and Leadership Lab joined the Department Head team to refresh on academy learnings, discuss how to leverage strengths to achieve objectives, and ensure a Healthy and Smart organization. Department specific action plans were developed with cross-departmental support. k) In June 2016 the Centre will provide additional opportunities for approximately 30 participants to explore their behavioral style using the DISC profile and learn more about leveraging strengths to achieve results. 2. The feedback from participants as well as leaders in the organization is very positive. Employees state they feel more supported in their desire to pursue advancement opportunities with the City and are better equipped to deal with the complex, demanding, and changing environment in which we work. Fifteen participants have been promoted to new, or are in acting roles in the organization since participating in these academies and trainings. 3. As the City goes through a period of slightly higher than typical turnover (approximately 10% City- wide), these programs allow employees from all departments to get to know each other and work together on key issues for the organization. Two participants in the academies were new (less than one year) to the City and provided feedback that participation increased their internal networks and helped to orient them to the broader organization much more quickly and effectively. The City will soft-launch a comprehensive Onboarding program in June 2016 because of the work completed by one of the Leadership Lab teams that offered to implement their proposal following the completion of the Leadership Lab program. Onboarding is recognized as being critical to the success of new hires by helping them adjust to the social and performance aspects of their jobs, and to learn the attitudes, knowledge, skills, and behaviors necessary to function effectively at the City. 4. Application of knowledge and skills obtained in the Leadership and Learning Academy programs is likely one of the most beneficial points of this type of program. The Centre provides various ways to encourage that including the use of projects, development of work plans, and “vertical integration”. Vertical integration is a facilitated discussion of what was learned, how it can be used to enhance the work of the City, and what roadblocks are prohibiting this from occurring. While it is early to quantify the actual “benefit” received during the first cohorts, if funding is approved, Employee Engagement Surveys will be regularly conducted and the City will measure progress. Other measures 9.a Packet Pg. 141 Attachment: a - COE SOPC [Revision 2] (1517 : Centre for Org Effectiveness) SIGNIFICANT OPERATING PROGRAM CHANGE – GENERAL GOVERNMENT SUSTAIN INVESTMENT IN EMPLOYEE DEVELOPMENT AND LEADERSHIP (LEADERSHIP AND LEARNING ACADEMY) of success will include the number of vacancies filled internally; especially in key leadership roles. Further, now that the City has exposed City employees to the quality of the programs, word of mouth is spreading internally and more interest is being realized. It is important to build on that momentum. 5. When the Supervisor Transition and Readiness Training (START) was first offered in March 2015, the City received over 60 applications, indicating in part excitement about the opportunity as well as a backlog of training needs. Given the anticipated turnover (in particular due to retirement) that hits heavily on supervisory and management programs, staff recommends continued training in this area as well as supervisory skills. 6. The COE is considering offering Regional academies (Supervisor, Manager and Leader) on the Central Coast that would allow the City to participate on a per person basis instead of hosting a complete cohort of 30 employees. Not only will this approach allow the City to reduce costs, it will also allow the City to meet immediate demands (e.g. training and development for a new hire or newly promoted employee), and expose City employees to the issues and perspectives of employees in other public agencies on the Central Coast. The funding requested will allow the City to offer full cohorts if the internal demand warrants, or provide for participation in the Regional Academies in the event they are offered. Having committed funding will help ensure that the Centre is able to offer these regional programs. 7. When funding was originally requested, staff anticipated the need to continue these efforts on an ongoing basis but felt it was premature to “program” an amount into the base budget until there was more clarity on the longer term needs. To a certain extent this is still the case, as the programs will change over time depending on the needs of the employees and the organization. For the foreseeable future, the focus will be on reaching a saturation point, where the majority of supervisors have participated in Supervisor Academy and managers have participated in the Leadership Lab. 8. Following “saturation” when the vast majority of employees have participated in these training and development opportunities, funds will shift to providing more organizational consulting to ensure that the City’s Human Resources systems, specifically the Recruitment and Selection and Performance Management systems are aligned and reinforcing the learned competencies. In addition, to ensure the training and development is being applied within the organization effectively, funding may be used to provide coaching support to employees. GOAL AND POLICY LINKS 1. Other Important Council Objective – Fiscal Responsibility and Sustainability. PROGRAM WORK COMPLETED The Leadership and Learning Academy was launched in February 2015 following an Employee Engagement Survey facilitated by COE that identified organizational strengths and areas for development. As a result of input received from the Engage ment Survey, 35 employees participated in the Supervisor Transition and Readiness Training (START) in March 2015. The training is aimed at helping employees think critically through the commitment required to transition from individual 9.a Packet Pg. 142 Attachment: a - COE SOPC [Revision 2] (1517 : Centre for Org Effectiveness) SIGNIFICANT OPERATING PROGRAM CHANGE – GENERAL GOVERNMENT SUSTAIN INVESTMENT IN EMPLOYEE DEVELOPMENT AND LEADERSHIP (LEADERSHIP AND LEARNING ACADEMY) contributor to supervisor, potentially of former peers. In the Fall of 2015, the City launched the first Supervisor Academy with 30 participants aimed at providing new supervisors the fundamental skills to effectively coach, counsel, and develop employees and an additional 30 employees graduated from the Leadership Lab. This program is aimed at formal and informal leaders in the organization and develops an “esprit de corps” among graduates, providing a critical mass of leaders able to look more deeply at their responsibilities and realities of public service from an organizational and community -wide perspective. As a result of these offerings, employees have “stepped up” into acting roles in numerous parts of the organization and indicated interest in taking on new roles. Cross-functional “bonds” were developed that help streamline work in a variety of ways and sets a solid foundation for much needed work on business process improvement and reengineering. Further, project work performed in the class helped move important issues forward such as the need to address and improve Onboarding, reinvigorate the Community Academy, and orient the Financial Planning process to employees new to the City. Vertical Integration Day took place on April 13, 2016 with approximately 60 employees in attendance. Attendees participated in the Strengths Finder Assessment, learned more about their strengths and how to use them, and the City Manager affirmed her commitment to a culture that is healthy and smart. Smart describes the City’s commitment to technology, best practices, fiscal responsibility, legal compliance, etc. Healthy describes the City’s commitment to open and constructive communication, an organization with low or no “drama”, and employees who do what they love and do it well. Each functional department left with an “action plan” of how they will work on achieving their goals, with personal commitments from others in the organization to assist, by utilizing their strengths. Input and a preliminary proposal have been discussed with consultants at the Centre for Organization Effectiveness and is the basis for the cost estimates provided. The proposed offerings in 2016-17 are paced to align with other priorities in the City, to compliment work already done, to ensure a strong foundation of the competencies and principles with broad saturation so employees are “speaking the same language”, and to take advantage of regional offerings for cost effectiveness. ENVIRONMENTAL REVIEW No environmental review is needed. PROGRAM CONSTRAINTS AND LIMITATIONS Primary constraints include time (for participation), coordination, and follow-through to ensure the cultural change desired occurs. All of these constraints depend upon an ongoing commitment to the overall program and employee development which means funding must be available to support these programs. Employees will not carve out the time and make the commitment to fully participate in training and development if there is concern that it is a one or two year only commitment or that application of what they are learning is not supported. Coordination and strategically planning future programs can be time-consuming. A small portion of this request may be needed for additional help in this area; this is dependent upon Human Resources staffing requests. 9.a Packet Pg. 143 Attachment: a - COE SOPC [Revision 2] (1517 : Centre for Org Effectiveness) SIGNIFICANT OPERATING PROGRAM CHANGE – GENERAL GOVERNMENT SUSTAIN INVESTMENT IN EMPLOYEE DEVELOPMENT AND LEADERSHIP (LEADERSHIP AND LEARNING ACADEMY) STAKEHOLDERS All employees and potentially the community members they serve as employees will have improved skills and be more empowered to address community needs. IMPLEMENTATION The tasks below are anticipated based on feedback and needs today. However, some flexibility may occur depending upon timing and availability of the regional academies. In other words, this implementation schedule may change slightly without affecting the overall cost of the program. Task Date 1. Regional START Academy - 2 days, 10 participants ($4,000) 2. Regional Supervisor Academy - 5 day program, 5 participants (5,000) August – Oct 2016 3. DISC behavioral assessment and debrief and/or StrengthsFinder and applying strengths debrief – 60 participants ($8,700) Oct – Dec 2016 4. Second Employee Engagement Survey and Half Day Debrief and Integration with Department Heads ($30,000) Jan – March 2017 5. One day program “Managing Those Transitioning to Retirement” – 40 participants ($8,700) 6. One Full Day (up to two half-day topics) Targeted Training Sessions (topics TBD) – 40 participants per session ($8,700) 7. Regional Manager (6 day program), and/or Regional Leadership Academy (new 7 day program with emphasis on strengths based leadership, performance measurement, process mapping for efficiency, community- based solutions, and solutions-oriented service) - 10 participants ($25,000). 8. Vertical Integration Day – one day, up to 100 participants ($17,000) 9. One on one coaching, consultation on talent management, program management support provided by Centre ($13,200) Apr – June 2017 Timing TBD Dependent on coordinating with other agencies Timing TBD Ongoing KEY PROGRAM ASSUMPTIONS The Centre for Organization Effectiveness will continue to provide well respected, value added employee development programs on the Central Coast and will work with the City and other Central Coast clients to coordinate activities and reduce travel costs. 9.a Packet Pg. 144 Attachment: a - COE SOPC [Revision 2] (1517 : Centre for Org Effectiveness) SIGNIFICANT OPERATING PROGRAM CHANGE – GENERAL GOVERNMENT SUSTAIN INVESTMENT IN EMPLOYEE DEVELOPMENT AND LEADERSHIP (LEADERSHIP AND LEARNING ACADEMY) The City, County of San Luis Obispo, City of Santa Maria, and potentially other cities on the Central Coast will continue to collaborate and maximize regional efficiencies by supplementing cohorts with employees from other agencies if needed. Momentum will continue to build within the City organization as academies are offered for a second ti me and former participants can speak from personal first-hand experience about what they learned and how they have applied it. Additional project work, beyond Onboarding, will be achieved through participation in the Leadership Lab, that otherwise could not be accomplished given limited resources. PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Monica Irons, Human Resources Director Project Team: HR Staff, Department Head Team, City Succession Planning Committee, and staff at the Centre for Organization Development. Alternatives: 1. Continue the Status Quo. This is not recommended as it implies that employee development is not supported or recognized as a critical element in the City’s commitment to Financial Responsibility. Loss of institutional knowledge as employees retire, increased organizational change, and increased complexity of demands on the City means the City must prepare employees for upcoming opportunities. 2. Defer or Re-Phase the Request. The ongoing portion of this request is being deferred to the 2017-19 financial plan process. This request represents an important “bridge” from the first two year contract to that request. 3. Change the Scope of Request. Staff has worked closely with the Centre for Organization Effectiveness to estimate the appropriate offerings for 2016-17. These could be scaled back, if needed, but staff would need to work closely with the Centre to recomme nd appropriate reductions so as not to inadvertently reduce the intended impacts. OPERATING PROGRAM Human Resources Administration COST SUMMARY The cost below reflects the anticipated cost to fund 2016-17 training programs. 9.a Packet Pg. 145 Attachment: a - COE SOPC [Revision 2] (1517 : Centre for Org Effectiveness) SIGNIFICANT OPERATING PROGRAM CHANGE – GENERAL GOVERNMENT SUSTAIN INVESTMENT IN EMPLOYEE DEVELOPMENT AND LEADERSHIP (LEADERSHIP AND LEARNING ACADEMY) ONGOING EXPENDITURES Line item description PROGRAM ACCOUNT #AMOUNT STAFFING CONTRACT SERVICES 2016-17 pricing estimate provided by the Centre 30100 7227 120,300$ OTHER OPERATING EXPENDITURES Refreshments and Various Costs for Trainings 30100 7459 4,700$ MINOR CAPITAL TOTAL ONGOING OPERATING CHANGE 125,000$ 9.a Packet Pg. 146 Attachment: a - COE SOPC [Revision 2] (1517 : Centre for Org Effectiveness) AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on July 1, 2016, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and THE CENTRE FOR ORGANIZATION EFFECTIVENESS, hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, on June 14th, 2016, City Council approved the $125,000 for the Centre for Organization Effectiveness for 2016-17. WHEREAS, Contractor is qualified to perform this type of service and has submitted a proposal to do so which has been accepted by the City. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until acceptance or completion of said services. 2. INCORPORATION BY REFERENCE. Contractor agrees to perform the services set forth in the Proposal, hereinafter referred to as Exhibit C, which is incorporated herein by this reference. Contractor further agrees to comply with the City’s standard terms and conditions and insurance requirements which are attached hereto as Exhibits A and B, respectively, and incorporated herein by this reference. Should there be any conflict between Contractor’s proposal and the City’s standard terms or conditions, the City’s standard terms and conditions shall control. 3. CITY'S OBLIGATIONS. For providing programs offered by the Centre for Organization Effectiveness as specified in this Agreement, City will pay and Contractor shall receive therefor compensation in a total sum not to exceed $120,300. 9.b Packet Pg. 147 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as set forth in Exhibit C. Contractor further agrees to the contract performance terms and requirements set forth in Exhibit A and B, respectively. 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 or City Manager of the City. 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 of San Luis Obispo Human Resources Department 990 Palm Street San Luis Obispo, CA 93401 Contractor The Centre for Organization Effectiveness 7310 Miramar Road, Suite 380 Miramar, CA 92126 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. 9.b Packet Pg. 148 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. CITY OF SAN LUIS OBISPO CONTRACTOR By:____________________________________ By: ___________________________________ City Manager APPROVED AS TO FORM: _____________________________________ City Attorney 9.b Packet Pg. 149 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) Exhibit A GENERAL TERMS AND CONDITIONS REQUIREMENTS 1. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Exhibit B within 10 (ten) calendar days as a precondition to contract execution. 2. 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 3. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 4. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 5. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 6. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 7. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 8. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 9. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor's operations, it shall be replaced or restored at the Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 10. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to 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. 9.b Packet Pg. 150 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) 11. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 12. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 13. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment or services provided by the Contractor (Net 30). 14. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 15. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 16. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 17. Hold Harmless and Indemnification. 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 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. 18. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 9.b Packet Pg. 151 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) 19. 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 Contrac tor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the 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. 9.b Packet Pg. 152 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) Exhibit B INSURANCE REQUIREMENTS Consultant Services The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Errors and Omissions Liability insurance as appropriate to the consultant's profession. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. General Liability: $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, occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection aff orded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 9.b Packet Pg. 153 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) 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 endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. 9.b Packet Pg. 154 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) ÏHE CENTRE Ql()FoRORGANtZATtoN EFFECTIVENESS Received Human Resources DePadrnenll OcT I T ?01ü CitY of San Luis OtrisPct PROPOSAL City of San Luis Obispo Employee Development and LeornÍng (Leadershíp and Lesrning Acodemy) FY 20t6-20I7 Proiect Description The City Manager and Human Resources Director for the City of San Luis Obispo has requested consultant services to facilitate several employee development opportunities over the 20L6-20I7 Fiscal Year which will ensure City employees are well-equipped for current and future demands by focusing on the development of proven public sector competencies, preparation for supervisory, program management, and leadership roles in complex environments. This work will connect to the development programs offered in Fiscal Year 20L5-2016 and support the sustainability of the groundwork that has been laid to ensure continued conversation, collaboration, and engagement of all staff. Proiect Scope The following opportunities will be executed throughout the 20L6-2017 Fiscal Year and will be facilitated by various consultants determined to be the best fit for each engagement. Additional Academv Programs City of SLO employees will have the ability to participate in regionally-offered academy programs including S.T.A.R.T (Supervisors Transition and Readiness Training) and Supervisor Academy as well as the option of the Manager or Leadership Academy, depending on availability of offerings. These academies will be offered at different times throughout the year. ¡ S.T.A.R.T will occur October 4 & 5 and December 6 & 7. . Supervisor Academy will occur January 25,26 & February 22,23 Leveraging Stvles in the Workplace ln depth session to follow-up on the personal style assessments offered in the 2OL5-20L6 Fiscal Year (DISC and StrengthsFinder). This session will be offered to those who have already taken the DISC and Strengths-Finder assessments allowing them to dive deeper into the ongoing use and application of the assessment tools. Session will include a toolkit developed for managers and supervisors to use back in the workplace. This session will occur in the fall of 2076. Emnlovee Ensasem ent Survev Follow-Uo As a best practice and to evaluate positive impact of the programs delivered and follow-up work initiated in response to the Employee Engagement Su rvey that was conducted in 2}L4,the City of SLO will conduct a follow-up Employee Engagement Survey in the winter of 2OL7 (completed by end of March 20L7). The Leadership Team will receive an in depth debrief of the survey results including a working session to establish action plans and determine integration efforts. cc THE CENTRE FOR ORGANIZATION EFFECTIVENESS 7310 Miramar Road, Suite 380. Miramar, CA92126. Tel: (619) 354-5701. Fax: (619) 354-5708. tcfoe.com 9.b Packet Pg. 155 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) Managing Those Transitioning to Retirement As retirement looms for a significant portion of the employee population, a session will be delivered to address the challenges and opportunities corresponding to workforce transitions. This session will be offered Septem ber 1.4, 2016. Discover Your St rensths Sessions Two half-day workshops will be offered (on the same day) to all staff to receive their StrengthsFinder results and understand how to leverage Strengths in the workplace. These sessions will be offered in the Spring 20L7. Tarseted Trai nine Sessions There will be an opportunity to select two different topics to be offered on the same day, each in a half- day format, and open to all staff. Topic options are: Solutions-Based Customer Service & Constructive Conflict or Facilitation Skills & Decision Making. These sessions will be held in Late April or Early May 2017. Alumni Dav To support the ongoing application of tools gained from the programs offered in the 2015-16 FiscalYear and connect to the programs offered in the 2OL6-2O17 Fiscal Year, an Alumni Day will be developed with specific topics and activities that will provide an opportunity for all previous cohorts to interact, learn, and commit to organization-wide plans in a collaborative environment. This day will be held at the end ofJune 2OL7. Coachins and Consultation Access to appropriately-matched consulting and coaching resources will be made available as needed to support the City of SLO Leadership Team in integrating and moving forward with organizational challenges and changes. Prooosed Costs &cins Parameters The following table represents the costs for each program or project as well as the invoicing parameters of each activ cc THE CENTRE FOR ORGANIZATION EFFECTIVENESS 7310 Miramar Road, Suite 380 . Miramar, CA92126. Tel: (619) 354-5701. Fax: (6'19) 354-5708 . tcfoe.com Description Total Cost lnvoice Plan Add itiona I Academv Programs/Per attendee cha rge START - 20 employees Supervisor Academy - L0 employees Manager/Leadership Academy - 10 employees S8,ooo Slo,ooo Szz,soo Lst date of program attendance for each attendee Leveraging Styles in the Workplace S8,Boo Upon completion of session Employee Engagement Survey Follow-Up and Leadership Session SLz,q$o Sl,ozo 9.b Packet Pg. 156 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) Two phoses of work: o Survey lmplementation, Analysis and Reporto Debrief and Leadership Session Upon completion of each project phase Managing Those Transitioning to Retirement S7,ooo Upon completion of sessron Discover Your Strengths Sessions Sz,8oo Upon completion of session Targeted Training Sessions S8,5oo Upon completion of session Alumni Day Si.s,ooo Upon completion of session Coaching and Consultation lndividuol projects con be scoped out qnd ogreed to as appropriate 5L3,200 As work occurs, invoices will be sent monthly according to agreements Total Costs S120,3oo Proposed by Sommer Kehrli Executive Director, TCFOE Date: [,olf l(u Accepted by: Katie Lichtig City Manager, San Luis Obispo Date:Ir cc THE CENTRE FOR ORGANIZATION EFFECTIVENESS 7310 Miramar Road, Suite 380 . Miramar, CA92126. Tel: (619) 354-5701 . Fax: (619) 354-5708 . tcfoe.com 9.b Packet Pg. 157 Attachment: b - COE Contract 16-17 (1517 : Centre for Org Effectiveness) Page intentionally left blank. Meeting Date: 12/13/2016 FROM: Monica Irons, Human Resources Director SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (CJPIA) TO CONTRACT WITH DISABILITY ACCESS CONSULTANTS (DAC) TO CONDUCT AMERICANS WITH DISABILITIES ACT COMPLIANCE WORK RECOMMENDATION 1. Authorize the issuance of a purchase order to the CJPIA in the amount of $250,000; and 2. Authorize the City Manager to enter into a MOU with the CJPIA not to exceed $250,000 for fiscal years 2016-17 and 2017-18 to have DAC conduct Americans with Disabilities Act (ADA) compliance work. DISCUSSION At the 2016-17 Budget Supplement Council authorized $250,000 to ensure continued compliance with the ADA by completing an updated Self-Assessment and Transition Plan. The ADA was passed in 1990, the City’s first Self-Evaluation of publicly accessible programs and analysis of barriers was completed in 1994, and a Transition Plan was adopted by Council in 1995. The City is routinely completing maintenance and replacement of its facilities. In doing so, the facilities are either brought into compliance with the ADA, or some upgrade in the facilities is made to improve accessibility. While this continual improvement is good, it is also important to formally review and update the City’s Plan to ensure resources are allocated toward addressing ADA issues and ensuring public facilities have improved accessibility. In addition, ADA standards have changed since its inception in 1990 and facilities that met standards in 1995 may not meet current, updated standards. By having an updated Assessment and Transition Plan, the City can focus and prioritize its funding dollars while still accomplishing important infrastructure maintenance. Sole Source Justification Financial Management Manual Section 295-1, Purchasing Guidelines provides that sole source contracts for consultant services may be pursued “If it is determined that it is in the best interest of the City for services to be provided by a specific consultant – with contract terms, work scope and compensation to be determined based on direct negotiations – contract award will be made by the Council”. While the ADA does not specify time periods to update Assessments and Transition Plans, CJPIA, the City’s liability insurance advisor, is strongly encouraging its members to do so to reduce risk in this area and to improve accessibility of public programs and facilities in our community. Part of the encouragement by CJPIA included their selection of a consultant, DAC, to be readily available to conduct such work for CJPIA Member agencies. Further, CJPIA is 10 Packet Pg. 158 offsetting $16,500 of the costs associated with the work if the City uses DAC and is paying for the one-time cost of $5,000 associated with DacTRak a system that inventories publicly accessible facilities and programs and allows the City to track progress, recognize changing legal requirements, etc. An updated Assessment and Transition Plan will put the City in a more favorable position in the event there is an ADA audit or an ADA claim filed against the City. DAC has a proven track record of working with CJPIA and member agencies. FISCAL IMPACT Council authorized $250,000 to ensure continued ADA compliance by updating the City’s Assessment and Transition Plan as part of the 2016-17 Budget Supplement. Therefore, there is no fiscal impact of authorizing the City Manager to execute this MOU. ALTERNATIVE Issue an RFP for these services. Council could choose to direct staff to issue an RFP for these services. This alternative may result in other proposals being submitted, but other member agencies in CJPIA have experienced positive results with DAC and the City would forego the $23,500 in funding towards this project from CJPIA. Attachments: a - CJPIA Agreement with DAC & Addendum b - DAC Proposal to City of San Luis Obispo - October 18 2016 c - MOU with CJPIA 10 Packet Pg. 159 PROFBSSIONAL SERVICES AGREEMENT TI-IIS AGREEMENT for Professional Services ("Agreement") is made this day of July 1,2015 ("Effective Date") by and between the Caiit'omia Joint Powers lnsurance Authority ("Authority") and Disability Access Consultants ("Consultant") (together sometimes refbrred to the "Parties"). Section 1. $BRVICES. Subject to the tenns and eonditions set forth in this Agreernent, Consultant shall provide to Authority the services described in the Scope of Work attached as Exlibit A. and incorporatecl here. Such work shall be provided at the tirne and place ancl in the manner specifìecl in Exhibit A. In the event of a conflict in or inconsistency betrveen the terms of this Agreement and Exhibit A, this Agreement shall prevail. 1.1 Term of Serviçes. The temr of this Agreement shall begin on the Effestive Date and slrall end on June 3A,201,6. Consultant shall complete the work described in Exhibit A priol to that date, unless the term of the Agreenrent is otherwise terminated or extended as provided for ín Section 8. The time provided to Consultant to complete the services required by this Agreement shall not afTect the Authority's right to terminâte the Agreement, as provided for in Section 8. 1,2 Standard of Performance. Consuitant shall perfonn all services required pnrsuant to this Agreernent in the nanner and according to the standards observed by a cornpetent practitioner including the necessary expertise or knorvledge of the profession in which Consultant is engaged in the geographical area ilr whiclr Consultant practices its profession and to the sole satisfaction of the project representative. 1.3 Assignlgent of Personncl, Consuitant shall assign only competent personnel to perform sen,ices pursuant to Agreernent. In the event that Authority, in its sole discretion, at any tirne during the temr of this Agreement, desires the reassignment of any such persons, Consultant shall. imrnediately upon receiving notice from Authority of such clesire of Authority. reassign such person or persons. 1.4 Time. Consultant shall devote such time to the perfbrmance of seruices pursuant to this Agreement as may be reasonably necessary to satisfy Consultant's obligations hereunder 1.5 Authorization to Perform Services. The Consultant is not authorizecl to perform any se¡'vices or incur any costs w'hatsoever under the terms oî lhis Agreement until receipt oi autholization lrom the Author:ity's ploject representative. Section 2. C9M-PENSATION. Ar"rthority hereby agrees to p¿ìy Consultant in accordance with the p¿ìyment schedr-¡le as set forlh in Exhibit B, attached hereto and incorporated herein by refèrence as though set tbrth in full. based upon work cornpleted, as deiined in Exhibit A, In the evenL ola conflict between this Agreenrent and Ëxhibit A, regarding the amount of cornpensation, this Agleement shall prevail. Authority shall pay Consultant for services reudered pursuant to this Agreernent at the time and in the mamer set f'otth herein. 'fhe payments specitìecl below shali be the only payments trorn Authority 11/12115 FrNAL DAC / JPtA Page 1 10.a Packet Pg. 160 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) to Consultant f'ol services rendered pursuant to this Agreement. Consultant shall submit all invoices to Authority in the manner specitìed herein. Except as specitically authorized in advance by Authority, Consultant shall not bill Authority tbr cluplicate services performed by more than one person. Z.l Invoices. Consultant shall submit invoices during the term of this Agreement, baseclon the work conrpleted. and within 30 clays. All wolk billed shall lre on a per member basis, with an itemized detailof services perfbrmed. 2.2 Pavment. Autliority shall rnake rnonthly payments, based on invoices received, for services satistàctorìly pertbrmed, and for authorized reimbursable costs incuned. Authority shall have 30 days frorn tlie receipt of an invoice that complies with all of the reqnirements above to pay Consultant. .,?Total P¿yment. Authority shall not pay any additional sum fbr any expellse or cost whatsoever incurled by Consultant in renclering services pursllant to this Agreement. Authority shall nrake no payment lbl any extra, further. or additional service pursuant to this Agreernent. 2.4 Payment of Tnxes. Consultant is solely responsible tbr the payment of employrnent taxes incurred under this Agreenrent and any fecleral or state taxes. 2.5 Pavment uDon Termination. In the event that the Autliori ty or Consultant tenninates this Agreement purslrant to Section 8, the Authority shall compensate the Consultant for all outstanding costs and reimbursable expenses incun'ed for work satisfactorily completed as ol=the clate of written notise o1'tel'mination. Consultant shall rnaintain adequate logs and tirnesheets in orcler to verity costs incuu'ed to that date, Section 3. EOUIPMENT. Except as otherwise provided, Consultant shall, at its sole cost and expeû.se, provide all supplies and equipment necessary to peri'orm the services required by this Agreement. Section 4. INSURANCE REOUIREMENTS. Without limiting Consultant's indemnitìcation of Authority. and prior to commencement of Vy'ork, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satistàctory to Authority. 4.1 General Liabilitv Insurance. Consultant shall nlaintain conrmercial general liability insurance with coverage at least as broad as lnsurance Services Oftrce f'oln CG 00 01, in an amount not less than $ 1.000.000 pel' occurrence, $2,000,000 general aggregate. for bodiiy injur:y, pelsonal injury, and property danräge. The policy rnust include contractual liability that lTas not been amended. Any endorselnent restricting standard ISO "insr.u'ed contract" language will not be accepted. 4.2 Automobile Liability Insurance. Consultant shall rnaintain automobile insurance at least as broad as Insurnnce Services Oñìce f'onn CA 00 0i covering bodily injury and property clamage for all activities of the Consultant arising out of or in connection with 11l12l15 F|NAL DAC/JPrA Page 2 10.a Packet Pg. 161 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) Work to be pertbrmed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $ I,000,000 cornbined single lilnit for each accident. 4.3 Professional Liabilifv (Errors & Omissions) Insurance. Consultant shall rnaintain professional liability insurance that covers the Services to be perf-ormed in connection with this Agreement, in the minimum anrount of $1,000,000 per clairn and in the aggregate. Any policy inception date, continLrity date, or reroaclive date ¡nust be belbre the eflèctive clate of this agreement and Consultant agrees to maintain corrtinuous coverage through a period no less than three years after completion of the services required by this agreement. 4.4 Workers' Comoens¡tion Insurance. Consultantshall maintain'Workers'Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $ 1,000.000). Proof of Insurance. Consultant shall provide celtificates of i¡rsurance to Authority as eviclence of the insurance coverage required lrelein, along witl'r a waiver of,subrogation endorsement for worhers' compensation. Insurance cefiificates and endorsements nrust be approvecl by Authority's risk manager prior to cornlnencenent of perlbnnance. Curent certihcation of insurance shall be kept on lile lvith Authority at all tinles cluring the tenn of this contr¿lct. Authority reserves the right to require complete, ceftified copies of all required insurance policies, at any time, 4.6 Duration of Coverasc. Consultant shall procilre and maintain fbr the duration of the contract insurance against clair¡s fbr injuries to persons or danrages to property, which may alise tì'om or in connection with the pertbrmance of the work hereundel by Consult¿ult. its agents, representatives. enrployees or sub-consultants. 4.7 Primary/1.{on.cqntributine. Coverage provided by Consultant shall be primary and any insurance or selËinsurance procured or rnaintained by Authority shall not be required to contribute with it, The limits of insurance required herein may be satistìecl by a combination of primaly and umblella or excess insurzurce. Any umblella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also ¿:pply on a primary ancl non-contributory basis f'or the benelìt oIAutholity betbre the Authority's orrm insurauce or self'-insurance shall be called upon to protect it as a namecl insured. 4.8 Authoritv's Rights of Enforcement. In the event any policy of insurance reqLrirecì under this Agteernent does not comply with these specifìcations or is canceled and not replacecl. Authority has the right but not the duty to obtain the insurance it deerns necessary and any premium paid by Authority will be promptly reimbursed by Consultzurt or Autlrority 'uvill witirhold amounts snlTcient to pay prerniurn liom Consultant payrnents. ln the alternative. Authority nray cancel this Agreernent. 4.5 11/12115 FINAL DAC /JPIA Page 3 10.a Packet Pg. 162 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) 4.9 Accentable Insurers. All insurance policies sirall be issued by an insurance compally cunently authorized by the lnsulance Cornrnissioner to tlansact lrusiness of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the Authority's risk manager. 4.10 Waiver of Subrosation. Allinsurance coverage r¡aintained or procured pursua!Ìt to this agreement shall be endolsed to waive subrogation against Authority. its elected or appointed officers, agents, officials, ernployees and volunteers or shall specifically allow Consultant or others providing insurance evidence in corapliance with these specifications to waive their right of recovery prior to a loss. Consultant heleby waives its own right of recovery against Authority, ancl shallrequire similar written express waivels and insurance clauses from each ofits sub-consultants. 4.tt Enforcement of Contract Provisions (Non Estopncl). Consultant acknowledges and agrees that any actual or allegecl làilure on the part of the Authority to intbrm Consultant of non-cornpliance with any requirement imposes no additionalobligations ou the Authority nor does it waive any rights hereunder. 4.12 Requirements Not Limitine, Requirements of specilìc coverage fèatures or lirnits containecl in this Section are not intendeci as a lirnitation on cover?ge, linrits or other requirements, or a r¡,aiver of any coverage normaily providecl by any insurauce. Specifrc lef'erence to a given coverage fèature is tbr purposes of clarification only as it pertains to a given issue and is not intended by any party or i¡rsured to be all inclusive, or to the exclusion of other coverage, or a waivel of any type. If the Consultant maintains higher limits than the minimums shown above, the Authority requires and shall be entitled to coverage for the higher linits rnaintained by the Consultant. Any available insurance proceeds in excess o1Ìthe specit-red minirnum lirnits of insurance and coverage shall be available to the Authorily. 4.13 Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to Authority with a thirty (30) day notice of cancellation (except lbr rìonpayment fol which a ten (10) day notice is requireci) or nonrenewalof covelage f'or each required coverage. 4.14 Aclditional Insurcd Status. General liability policies shall provide or be errclorseci to provicle that Authority and its ol hcers, ol fìcials, employees, and agents, ancl volunteers shall be additional insureds under such policies. This provision shall aiso apply 1o any excessiumbrella liability policies. 4.15 Prohibition of Undisclosed Coverasc Liqritations. None of the coverages required herein will be in conrpliance with these requirernents if they include any lirniting enclorsenent of any kind that has not been first subrnined to Authority zurd approved of in writing. 11/12l1s FrNAL DAc / rPrA Page 4 10.a Packet Pg. 163 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) 4.16 Separation of Insureds. A severability of interests provision mLrst apply for all additional insureds ensuring that Consultant's insuLance shall apply separately to each insured against whom claim is made or suit is brought, eKcept with respect to the insurer's limits of liability. The policy/policies shall not contain any cross-liability exclusions. 4.17 P4ss Throueh Clause. Consultant agrees to ensure that its sub-consultants. subcontractors, and any other party involved with the project who is brought onto or involved in the ploject by Consultant, provide the same minimum insurance coverage and endorcements required of Consultant, Consultant agrees to monitor and revierv all sueh coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the lequirements of this section, Consultant agrees that upon reqr.rest. all agt'eements with consultants, subcontractors, and others engaged ín the project will be subrnitted to Authority fbr review. 4.18 Authorify's Rieht to Revise Srrecificatlo-!ìs, The Authority reserves the right at any tirne during the temr of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial aclditional cost to the Consultant, the Authority and Consultant may renegotiate Consultant's compensation. 4.19 Sell'-Insured Retentions. Any self-insurecl retentions must be declared to and approved by Authority. Authority reserves the right to requile that sell'-insured retentions be eliminated, lowered, or replaced by a deductible. Self'-insurance will not be cottsidered to conrply with these speci{ications unless approved by Authorit¡'. 1.20 Timely Notice of Claims. Consultant shall give Authority prompt and tirnely notice of claims made or suits instituted that arise out of or result f'rom Consultant's perfbrmance under this Agreement, and that involve or may involve coverâge under any of the required liability policies. 4,21 Additional Insurance. Consultant shall also procuTe ancJ rnaintain, at its orvn cost ancl expense, any additionalkinds oIinsurance, which in i1s orvn judgrnent may be necessary for its proper protection and prosecution of the work. Section 5. INDEMNIFICâ.TION Consultant shall indem¡ify, defend with counsel acceptable to Authority and hold harmless the Authority and its offrcials, officers, employees, agents, members, and authorized volunteers from and against any and all losses, liabilities, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, damages and expenses of any kind, whether actual or threatened, (including but not limited to attorneys' fees and costs, court costso interest defense costs, and expert witness fees) where the same arise out of, are â consequence of or are in any way attributable to, in whole or in part, the performance of this Agreement (or the failure to perforrn) by Consultant or by any individual or entity t'or which Consultant is legally liable, including but not limited to officers, agents, 11/12115 F|NAL DAC / JPIA Pâge 5 10.a Packet Pg. 164 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) employees or subcontractors of Consultant. Such indemni{ication, defense and hold harmless extend to Consultant's provision, use, transport and storâge of hazardous materials, as those commonly are defined under state and federal laws and regulations. The foregoing obligation of Consultant shall not apply when (1) the injury, ioss of life, damage to property or violation of law arises wholly from the negligence or willful misconduct of the Authority or its offrcers, employees, agents, members, or authorized volunteers and (2) the actions of Consultant or its employees, subcontractors or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law. It is understood that the duty of Consultant to indemniff and hold harmless includes the duty to defend as set forth in Section 2778 of the Califomia Civil Code. Acceptance by Authority of insurance certificates and endorsements required under this Agreement does not relieve Consultant from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Consultant acknowledges and agrees to the provisions of this Section and that it is a material element of consideration. Section 6. STATUS OF CONTRACTOR. 6.1 Independent Contractor, At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of Authority. Authority shall have the right to control Contractor only insofar as the results of Contractor's services rendered pusuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise Authority shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement, Notwithstanding any other Authority, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by Authority, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of Authority and entitlement to any contribution to be paid by Authority for employer contributions and/or employee contributions for PERS benefits. It is understood by the parties that Contractor is independent and does not constitute a common law (employer-employee) relationship and said agreement is exempt for the post-retirement employment requirements. Section 7. 7.1 1'lt.L LEçA! RBOUTRtryENTS. Governine Lary. The laws of tlie State of California shall govern this agreement. Comnlinnce rvith Annlicable Laws. Cousultant and any subcontractor shail comply with all applicable local, state ancl tbderal laws and regulations applicable to the pertbrmance of the work herennder'. 1.3 Licenses and Permits. Consultant represents and wai'rants to Autholity that Consultant 11/1211s FrNAL DAc / JPtA Pâge 6 10.a Packet Pg. 165 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) and its employees, agellts, ancl any subcontractors have all licenses, pemrits, qualifications, and approvals of whatsoever nature that is legally required to practice their respective prot'essions. Consultant represents and warants to Authority that Consultant and its enrployees, agents, any subcontractors shall, at their sole cost and expense, keep in eff'ect at all times during the terrn or this Agreement any licenses, pennits. and approvals that are legally required to practice their respective professions. In addition to the fbregoing, Consultant and any subcontractors shall obtain and mainfain during the term of this Agreement valid Business Licenses froln Authority. SecJion 8. 8.1 TERMINATION AND MODIFICATION. Termination. Authority ancl Consultant hereby agree thf¡t this Agreement rnay be cancelled upon 30 days'written notice. In the event of termination. Consultant shall be entitled fo compensatio¡r for services perfbnned to the ei lective date of termination; Authority, however, nray condition paynrent of snch conrpensation upon Consultant delivering to Autholity any or all docu¡nents, photographs, computer soflware, video and audio tapes, and other materials provided to Consultant or prepared by or f'or Consultant or the Authority in connection with this Agreement. 8.2 Extension. Both parties agree that extending lhe Agleement beyond that provided f'or in Subsection i.1 may be in the best interest ol'all concerned. Any such extension shall require a wlitten amendment to this Agreement, as provided lor herein. Authority and Consultant understa¡rd ancl agree that, il-both parties agree to such an extension, all terrns and conditions of the original Agreernent shall renrain the same, ancl exte¡rded to the date provided f'or in said amendnent. 8.3 Amcndments. The par-ties rnay arnend this Agreement only by a wliting signecl by all the parties. Survival. All obligations arising prior to the terminatìon of this Agreement and ali provisions of this Agreement allocating liabilíty betrveen Authority and Consultant shall slrlive the termination of this Agreernent. 8.5 Options upon Breach bv Consultant. I1'Consultanl rnateri¿rll y breaches any offhe ternrs of this Agreemenl, Anthority's remedies shall include, but not be lirnited to, any or all of the fbllowing: 8.5.1 Inmediately temrinate the Agreernent; 8.5.2 Relain the docunrents, and any other rvork product prepared by Consultant pursuarlt to this Agreernentl 8.5.3 Retain a diflerent Consultant to conrplete the rvork described in Exhibit A 8.4 1rl12l15 FINAL DAC / JPrA Page 7 10.a Packet Pg. 166 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) not finished by Consultant; or 8.5.4 Charge Consultant the difTerenee betrveen the costs to complete the rvork desmibed in Exhibit A that is unfinished at the time of breach a¡rd the amouurt that Authority woirld have paid Cor¡sultant pursuant to Section 2 if Consultant had completed the work. Section 9. KEEPING AND STATUS OF RECORDS. 9.1 Records Crcated ns Pnrt of Consultant's Performancc. All reports, clata. maps, models, charts, studies, surveys, photographs, nlerrorancia, plarrs, studies, specilìcations, recorcls, files, or any other dosu¡nents or materials, in electronic or any other fbrm that Consultant prepares or obtains pursuant to this Agreenrent and that relate to the matters covered hereunder. shall be the property of the Authority. Consultant hereby agrees to deliver those docunlents to the Autholity upon termination o1'the Agreement. Consultant's Books and Records. Consultant shall maintain any and all iedgers. books ofìaccount, invoices, vouchers, canceled checks. and oLher ¡'ecords or documents evidencirrg or relating to charges f'or services or expenditures and disbursements charged to the Authority under this Agreernent for a mininlum o1- three (3) years. or flor any longer periocl required by law, tiom the date of final payrnent to the Consultant to this Agreernent. 9.3 Insnection and Audit of Recorcls. Any records or documents that Section 9.2 of this Agreement requires Consultant to rnaintain shall be made available for inspection, audit, and/or copying at any time dr.rring regular business hours. upon oral or wlitten request of, the Authority, Urrder Califbrnia Government Cocle Section 8546.7, i{'the amount ol' public funcls expended under this Agreenrent exceeds Ten Thousand Dollars ($ 1 0,000.00), the Agreement shall be sulrject to the exanri¡ration and audit of the State Auditor, at the reqr"rest of Authority oL as part of any audit of the Authority, lor a period of three (3) years after fìnal payment uncler the Agreement. Section 10. l0.t 9.2 MISCELLANEOUS PROVISIONS. Attornevsr Fees. I1'either party to this Agreement brings any aclion. including an ¿rctiort t'or declaratory reliel. to enfbrce or interpret the provision of this Agreernent, the prevaíling party shall be entitled to reasonable attorneys'fees in addition to any other reliel'to r.vhich thal parly may be entitled. The court rnay set such lèes in the sanre aclion or in a separate action brought tbl that purpose. It.2 Yenue. In the ervent that eithel party brings any action against the other under this Agreenent. the parties aglee that trialof such action slull be vested exclusively in Orange CoLrnty, 10,3 Scve rabilitv. lf a court of cornpetent jLrriscliction tinds or ruies that any provision of this 11l12l1s FrNAL DAc/JP|A Page 8 10.a Packet Pg. 167 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) Agreement is invalicl, void. or unenforceable, the provisions of this Agteement not so adjudged shall remain in full fbrce and effect. The invalidity in whole or in part of any provision of this Agreenrent shall not void or affèct the validity of any other provision ot' this Agreenrent. 10.4 No Implied Wqiver of Breach. The rvaiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 10.5 Sgf:gessofs and Assigns. The provisions of this Agreement shall inure to the benefit of ancl shall apply to ancl bind the successors and assigns of the parties. 10.6 Co4$ultn4t Renresentative. All matters under this Agreement shall be handled for Consultant by Barbara Thorpe. 10.7 Authority Contract Administration. This Agreement shall be administered by Norman Lefrnann ("Contract Adnrinistrator"). All corresponclence shall be directed to or through the Contract Administrator or his designee. 10.8 Noticcs. Any written notice to Consultant shall be sent to: Barbara Thorpe, President/CEO Disability Access Consultants 2243 Featlter River Boulevard Oroville, CA 95965 Any written notice to Authority shall be sent to the project representative. Courtney Morrison. 10.9 Intesratiolr-This Agreement, including the scope of rvork attached hereto and incorpomted herein as Exhibit A. re¡rresents the entire aud integrated agreement between Authority and Consultant and supersedes all prior negotiations, representatious, or agreements, either written or oral. 10.10 Coqnfe.lparts. This Agreernent may be exect¡ted in rmrltiple counteryafts. each of which shall be arr original and all of rvhich together shall constitute one agleement. The Parties have executecl this Agreement as of tlie Etïective Date. AU'fHOzuTY CONSULTANI' 11/12115 F|NAL DAC / JP|A Barbara Tho¡pe. President/CEO Page 9 10.a Packet Pg. 168 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) Exhibit A SCOPE OF SERVICES Consultant rvill provide the necessary professional services: l. Assistance Level 1: MenþS.t_Assessment and Overall Diaenostic Profile Consultant will perform an assessment to determine the current level of ADA compliance, in accordance with Title II of the Americans with Disabilities Aet, Section 504 of the Rehabilitation Act and Title 24 of the California Building Code, and plan a course of action to enhance compliance. Consultant will review the initiatives of the Member to assess whether the Member has met any or all of the mandatory compliance requirements of the ADA, Section 504 of the Rehabilitation Act and Title 24 andrelated accessibility standards and requirements. If, after review, i.t is determined that the member needs to complete or revise any of the required compliance components, Consultant will provide a recommended compliance plan that may include other assistance-level options. 2. Assistance Level 2: Inspectio.n ofS_iIgs. Development of TransitiorlBaniel&gmoval Plans Consultant will inspect sites that may be new or not inspected previously, or have had extensive modernization or major remodeling. Work will include inspection of member facilities and public rights-of-way, and identification of barriers to accessibility, solutions to remove these baniers, and incorporation of the information into Consultant's accessibility management software. 3. Assistance Level 3: Self-Evaluation of Policies, Procedures. Practices Consultant will conduct a review of policies, procedures, and practices to determine if any are discriminatory or potentially discriminatory. Programs, services, and activities would be reviewed to determine accessibility by persons with disabilities. 11112115 FrNAL DAC / JP|A Page 10 10.a Packet Pg. 169 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) EXHIBIT B RATES AND SCI.IEDULE OF PAYMENTS Billing and Reimbursement: l. Assistance Level 1: Member Assessment and Overall Diaenostic Profile The rate for this assistance level is a total one-time charge per member of $2,800, which includes all expenses. 2. Assistance Level2: Inspection of Sites. Develop.ment of Transition/Barrier Removal Plans The hourly rate is $98 per consultant, plus actual expenses. Any amounts for services provided beyond the $16,500 per-member funding allowance will be billed to Authority for payment. 3. Assistance Level3: Self-Evaluation of Policies. Procedures. Practices The hourly rate is $98 per consultant, plus actual expenses. For amounts for services provided beyond the $5,000 per-member funding allowance will be billed to Authority for payment. 4. Expenses Reasonable, actual expenses will be charged as authorized by Authority and may include mileage at the IRS rate, hotel, meals, rental car, airfare (no first-class flights) and travel time. 1U12l15 FINAL DAC / JPIA Page 11 10.a Packet Pg. 170 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) 10.a Packet Pg. 171 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) ADDENDUM No.2 TO AGREEMENT BETWEEN THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY AND DISABILITY ACC ESS CONSULTANTS This Addendum No. 2 ("ADDENDUM') is made and entered into this day of August 24,2Q16, by and between the California Joint Powers lnsurance Authority ("The AUTHORfff) and Disability Access Consultants ("CONSULTANT") (together sometimes refened to as "Parties"). WITNËSSETH WHEREAS, the AUTHORITY and CONSULTANT entered into an Agreement (hereinafter referred to aS "AGREEMENT") for the Americans with Disabilities Act (ADA) compliance consulting services related to the AUTHORITY's ADA Assistance Program, which was approved by the AUTHORIffS Ghief Executive Officer on AGREEMENT dated November 11,2015; and WHEREAS, the AUTHORITY and CONSULTANT executed an Addendum on March g, 2016 to address sections of AGREEMENT that required revision; and WHEREAS, for and in consideration of the mutual advantages to be derived therefrom and in consideration of the execution of this ADDENDUM, both the AUTHORITY and CONSULTANT desire to revise AGREEMENT in the manner described herein; and WHEREAS, AGREEMENT shall be amended as follows: 1. Section 1.1 ("Term of Services") of AGREEMENT shall reflect the term being extended for one more year until June 3A,2017.|f all Parties agree that further extending AGREEMENT beyond June 30, 2017 is in the best interest of all Parties, then another addendum shall be executed at the appropriate time. lN WITNESS WHEREOF, the Parties hereto have caused this ADDENDUM to be executed this day of August 24, 2016. "The "Consultant" Disability Access Gonsultants Shull, Chief Barbara Thorpe, PresidenUCEO 10.a Packet Pg. 172 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) 10.a Packet Pg. 173 Attachment: a - CJPIA Agreement with DAC & Addendum (1526 : MOU with CJPIA for ADA Services) City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401-3249 Proposal for Accessibility Services AMERICANS WITH DISABILITIES ACT (ADA) SELF-EVALUATION AND TRANSITION PLAN October 2016 Disability Access Consultants 2243 Feather River Blvd Oroville, CA 95965 10.b Packet Pg. 174 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 1 COVER LETTER To: Monica Irons Director of Human Resources City of San Luis Obispo 990 Palm Street San Luis Obispo, California 93401-3249 Re: Americans with Disabilities (ADA) Self-Evaluation and Transition Plan Firm Information: Disability Access Consultants (DAC) Southern California: 17777 Center Court Drive, Suite 600, Cerritos, CA 90703 Headquarters: 2243 Feather River Blvd, Oroville, California 95965 Project Manager: Barbara Thorpe, President bthorpe@dac-corp.com Phone: 1-800-743-7067 We appreciate the opportunity to submit our statement of qualifications and proposal for providing consultant services for an Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan for the City of San Luis Obispo public facilities and public rights-of-way. As you may be aware, under Title II of the ADA, the City of San Luis Obispo is required to have a continually updated and current Self Evaluation and Transition Plan. Title II entities, such as Port Hueneme may be at significant risk for claims and litigations by not having a current plan. Also, recent inquiries and enforcement activities by the DOJ, CalTrans and HUD have shown that Cities can be at risk of losing or not being able to receive their state and federal pass through funding should you not have a current plan in place. DAC has extensive experience in the evaluation of program and facility accessibility and provides a full continuum of Americans with Disabilities Act (ADA) and accessibility services for public entities, such as the City of San Luis Obispo. Founded as a California corporation and woman owned business in 1998, DAC has provided services for the past 18 years to assist public entities to comply and implement accessibility requirements in accordance with the ADA, Title 24 of the California Building Code, Section 504 and related federal, state and local disability-related nondiscrimination laws and regulation. DAC has conducted over 15,000 building inspections, surveyed thousands of parks and playgrounds, thousands of miles of sidewalks and performed hundreds of programmatic reviews and self-evaluations to study the accessibility of programs, services, activities, events and related areas. DAC has a comprehensive understanding of applicable standards, regulations and requirements under Title II of the ADA, California Building Code and related state accessibility standards. DAC has completed over a hundred similar studies. DAC was has also been working on a project for the Department of Transportation in Washington, D.C. to develop a pilot study for potential duplication of methodologies in other geographic areas, using tools and standards for public rights-of-way accessibility reviews by means of a software program to update and manage the ADA public rights-of-way transition plan. DAC is providing recommendations for best practices and technologies for the DOT. To provide for easy management of the transition plan and documentation of compliance efforts, DAC has developed web-based software called DACTrak. DACTrak is a powerful tool to manage and update the transition plan, project costs and document progress. Custom reports can be printed in a variety of formats. Respectfully submitted by Barbara Thorpe, President 10.b Packet Pg. 175 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 2 FIRM ORGANIZATION AND DESCRIPTION OF QUALIFICATIONS Since Disability Access Consultants was founded as a woman owned California Corporation in 1998, DAC has provided services for the past 18 years to assist public entities to comply and implement accessibility requirements in accordance with the ADA, Title 24 of the California Building Code, Section 504 and related federal, state and local disability-related nondiscrimination laws and regulation. DAC has extensive experience in the evaluation of program and facility accessibility and provides a full continuum of Americans with Disabilities Act (ADA) and accessibility services for public entities, such as the City of San Luis Obispo. As our founder, Barbara Thorpe, worked with a public entity for 19 years as the ADA Coordinator, 504 Coordinator, and Director of Planning and Compliance, she has extensive experience working with individuals with disabilities and organizations representing individuals with disabilities. In addition, she has collaborated with individuals with disabilities and organizations that represent individuals with disabilities in a facilitative manner that has benefited city governments during her work with other municipalities. Barbara and the DAC team members have demonstrated the ability to engage and interact with individuals and organizations to assist with the prioritization, long range planning and implementation of the ADA plan. DAC has a team of 20 staff, with our Facility Team Leader Michael Boga holding CASp Certificate #152, dedicated to assisting public entities, such as the City of San Luis Obispo, with ADA compliance. DAC has a comprehensive understanding of applicable standards, regulations and requirement under Title II of the ADA, California Building Code and related state accessibility standards. DAC has a reputation to being responsive to the client’s needs, providing on-time project completion within budgets. DAC has a proven track record for comprehensive experience in conducting ADA Self Evaluations and Transition Plans, implementation and related services. Other public entities for which DAC has provided similar services include Fair Oaks Recreation and Park District, Padre Dam Water District, Hayward Parks and Recreation, 15 California Fairs, 160 California public school districts, and several large Joint Power Authorities and insurance carriers for groups of public entities. DAC is currently assisting the California Joint Powers Insurance Authority (CJPIA) members, of which the City of San Luis Obispo belongs, to assist members with ADA compliance at a discounted rate. DAC has been assisting several Joint Power Authorities since 2000 and currently provides updates, consultation, plan reviews and expert witness services. DAC has worked with public entities of all sizes, from one site to 506 sites. Members of the DAC team have also served as expert witnesses to assist public entities to defend their current practices and ADA plan. DAC has only served on the side to assist public entities to defend their practices and plan and has never assisted with litigation against a public entity. Our mission statement and philosophy embrace the enhancement and assistance to our clients to build an ADA accessibility plan while documenting previous and current compliance methods. Over the 18 years of serving our clients, DAC has demonstrated financial stability, staff stability and has a no claims insurance record. DAC provides a full continuum of professional services that include, but are not limited to:  Facility inspections  Self-evaluations for ADA and Section 504 of the Rehabilitation Act  Policy review and development  Transition plans  Public rights-of-way surveys  Consultation  Accessibility compliance intake and management software – DACTrak 10.b Packet Pg. 176 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 3  DACTrak training to conduct your own inspections  Expert witness services  Plan reviews  ADA Plan implementation assistance and consultation  Outdoor developed and recreational areas (pools, parks, trails, camping areas)  NPSI playground safety inspections  ADA Playground inspections DAC utilizes the appropriate standard(s) for the inspection that may include, but is not limited to:  ADA 2010 Standards  California Building Code  ADA-ABA  UFAS  ANSI  Section 504 of the Rehabilitation Act  Outdoor developed and recreational standards  National Playground Safety Institute (NPSI) standards  PROWAG – Federal Public Rights-of-way Guidelines  Federal Highway Administration’s Manual on Uniform Traffic Control Devices (MUTCD) Our firm stands out in the public entity arena due to proven performance in a w ide range of services, from programmatic and policy reviews, facility inspections, transition plans, consultation, plan reviews and expert witness services. We excel at providing a comprehensive assessment of our clients’ current status by preparing a study of all areas related to accessibility in different departments to document ongoing compliance. Innovative Tools, Strategies and Best Practices Based on experience and knowledge of the accessibility field and best practices, DAC continues to develop innovative methodologies, easy to use ADA management tools, and proven, successful strategies for evaluating programs, services, activities, events, facilities, parks and public rights-of-way. DACTrak was developed by DAC for the purpose of easy and useful importing and management of the accessibility data collected in the field. DACTrak is interactive web-based software and is not an enhanced Excel spread sheet. The ability to collect, compile, analyze and use report data in a practical format was one of the driving forces to develop the DACTrak intake and management software. Our DAC accessibility management software, DACTrak, provides our clients with a powerful management tool to document compliance, project costs, print custom reports and record progress. DACTrak is not an Excel spreadsheet, but actual software that has been developed by our company to assist with the implementation and documentation of the City’s ADA plan and provides photographs of as-is site conditions, which has proved to be valuable documentation. Findings and recommendations, in addition to other data are preloaded into the DACTrak software. As DAC owns and licenses the DACTrak software, we can make custom modifications for our clients. The DAC team members proposed for the City of San Luis Obispo project have worked together on similar projects. A few projects are listed below. References and a description for the scope of work are provided for several of the following recent California projects:  City of Bakersfield  City of Banning  City of Bishop  City of Carlsbad  City of Carpinteria  City of Cathedral City  City of Claremont 10.b Packet Pg. 177 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 4  City of Clovis  City of Cudahy  City of Cypress  City of Del Mar  City of Elk Grove  City of Fountain Valley  City of Glendale  City of Grass Valley  City of Hemet  City of Huntington Beach  City of La Mesa  City of La Quinta  City of Laguna Woods  City of Lakewood  City of Lincoln City  City of Los Alamitos  City of Manteca  City of Modesto  City of Moreno Valley  City of Newport Beach  City of Oroville  City of Palm Springs  City of Palos Verdes Estates  City of Paramount  City of Pismo Beach  City of Poway  City of Red Bluff  City of San Clemente  City of San Dimas  City of San Gabriel  City of San Jose  City of San Juan Capistrano  City of Santa Fe Springs  City of Shafter  City of Tustin  City of Waterford  City of Willows  County of Butte  County of Calaveras  County of Glenn  County of Kern  County of Marin  County of Okaloosa  County of Santa Clara  County of Shasta  County of Solano  County of Tehama  Desert Recreation District  Fair Oaks Recreation and Park District 10.b Packet Pg. 178 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 5 DACTrak Accessibility Management Software The accessibility management software is included at no cost to the City for the first year as the cost is paid by the CJPIA. If the City decides to continue with the use of the web-based management software after the initial year, the cost is $2,000 and includes unlimited seat licenses. The use of the DACTrak software includes the storage and maintenance of the City data. If the City decides not to continue to use the web-based DACTrak Accessibility Management System to maintain, update and document compliance of the ADA plan, the data can be transferred to an Excel spreadsheet or an alternate format. DAC has found that usable and easy to manage software (instead of Excel spreadsheets) is imperative to maintaining and updating the ADA plan. Categories can be customized and findings organized as demonstrated in the screen shots of the DACTrak software included in the supplemental materials Appendix. PROJECT TEAM STAFFING AND RESUMES Disability Access Consultants (DAC) has a dedicated team of fourteen professionals with backgrounds in administrative leadership roles with public entities, construction and code enforcement. DAC is an equal opportunity employer and our team composition includes minority and veteran representation. The team has worked together on numerous ADA compliance projects with City governments and public entities. DAC works with several large JPA’s and insurance pools to assist public entities with ADA compliance. City Contacts City of San Luis Obispo Barbara Thorpe Project Manager Srikant Talasila Director of IT Michael Boga CASp-152, ICC Facility Team Leader / Quality Control Candice Pursch Field Inspection Supervisor Field Inspectors (4-6) Jennie Grover Director of Operations 10.b Packet Pg. 179 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 6 The DAC team has a proven record to provide on-site services in a collaborative and efficient manner. DAC has experienced team members who have worked with public entities for successful and on time completion of numerous projects. Necessary staff members have ICC, NPSI, and CASp certification. A CASp certified Team Leader will be involved with the project and field evaluations. The project team is organized to provide a representation of skills needed to accomplish the project objectives. In addition, teams that have worked together previously will be assigned to the City of San Luis Obispo project. Following are descriptions of key team members’ qualifications and their assigned roles. Barbara Thorpe, M.Ed., LOT DAC Project Manager As DAC Project Manager, Barbara will coordinate activities and schedules and report to the Director of Human Resources or designee. Barbara will serve in the leadership role regarding the ADA Self-Evaluation of programs, services, activities and events along with the review of policies and procedures. Barbara brings twenty years of experience in public administration and providing services to individuals with disabilities to Disability Access Consultants. As an administrator in a public entity, Barbara provides unparalleled understanding of the application of the Americans with Disabilities Act and related legislation. In addition to assisting public entities with compliance with the ADA, Barbara has conducted compliance reviews for the Department of the Interior to audit for compliance with the ADA, Section 504 of the Rehabilitation Act and related civil rights laws and regulations. Barbara has served as an expert witness for the Department of Justice, Office of the Attorney General. Additionally, Barbara is a licensed occupational therapist. Barbara served on the Division of State Architect Advisory Board and served as the vice-chair for the DSA Access Compliance Committee. Barbara has worked on over 200 public entity projects that are similar to the City. Michael Boga, B.A. Education, California Certified Access Specialist, ICC Accessibility, Usability and Plans Examiner Facility Team Leader As manager of the production and the inspection team, Michael brings a unique blend of experience in the building industry along with his understanding of individuals with disabilities to the accessibility team. Michael is a certified accessibility specialist through the International Conference of Building Officials (ICC), certified in Accessibility, Usability and Plans examination and is California certified CASp inspector #152. Michael has completed the updated DSA courses regarding the 2010 California Building Code. Michael has provided numerous staff development sessions to public entities regarding accessibility requirements. If requested, Michael would provide training, assist with plan reviews and review new work completed for compliance, as requested. Mike has worked on over 260 projects that are similar to the City of San Luis Obispo. Jason Katz, B.S. Urban Planning, B.A. Sustainability and Urban Dynamics DAC Accessibility Specialist Jason brings to DAC a background in civil design with degrees in Urban Planning and Sustainability/Urban Dynamics. Jason is also certified in Geographic Information Science and Auto CAD. Prior to becoming an Accessibility Specialist with DAC, Jason has worked on projects to compare and estimate future urban area population density differences using ESRI ArcMap 10, and also worked with the City of Mesa, Arizona to help establish green building codes for City owned buildings. Srikant Talasila Director, Information Technology Srikant brings many years of experience with information technology and management information services from a large corporation. He has the ability to categorize and organize large volumes of information regarding public and school facilities into a manageable database. He provides training and consultation to our clients in the use of DACTrak. Srikant would work directly with City of San Luis Obispo staff to train and assist with the data entry and management of data. Jennie Grover Director of Operations Jennie draws on her experience in technical writing to provide leadership and management of the production 10.b Packet Pg. 180 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 7 and technical writing team, organizing the completion of technical reports, as well as managing production schedules, staff and timelines. CLIENT REFERENCE LIST The following are a few of the most recently completed references for scopes of work similar to the City of San Luis Obispo that include City and County Governments and Park Districts. Numerous additional references are available. City of Bakersfield Caleb Blaschke City Manager’s Office, City Hall North 1600 Truxtun Avenue Bakersfield, CA 93301 Phone: (661) 326-3745 cblaschke@bakersfieldcity.us Project Name: ADA Self-Evaluation and Transition Plan  DAC provided an ADA Self-evaluation and transition plans of City buildings, facilities and parks.  The City is using DACTrak Accessibility Management Software to manage the implementation of the plan and document progress.  DAC also conducted the ADA Self-evaluation of programs, services and activities and provided the City with an Executive Summary detailing the results and recommendations. City of Waterford Matt Erickson Public Works Director 101 E Street Waterford, CA 95386 Phone: (209) 874-4095 ext. 130 merickson@cityofwaterford.org Project name: ADA Self-Evaluation and Transition Plan  DAC conducted an ADA self-evaluation and Transition Plan for City Buildings, facilities, parks and public rights-of-way  DAC has also assisted the City to perform a self-evaluation of services, policies, programs and practices.  City staff is using DACTrak to update and implement their Transition Plan. City of Grass Valley Bjorn Jones Associate Civil Engineer 125 East Main Street Grass Valley, CA 95945 Phone: (530) 274-4322 bjornj@cityofgrassvalley.com Project name: ADA Self-Evaluation and Transition Plan  DAC created ADA self-evaluation and transition plans for City buildings, facilities, parks and parking lots.  DAC also assisted the City to complete the evaluation of policies, procedures, practices and programs, and provide opportunities for public input.  The City staff is using DACTrak to update and implement their Transition Plan for facilities.  DAC reviewed the City’s existing field assessment reports for curb ramps and sidewalks, and made necessary recommendations to complete a public rights-of-way Transition Plan County of Inyo Diane Fortney Project Coordinator, Public Works P.O. Drawer Q Independence, CA 93526 Phone: (760) 878-0263 dfortney@inyocounty.us Project name: ADA Self-Evaluation and Transition Plan  DAC recently completed an ADA self-evaluation and transition plan for county buildings, facilities, parks and public rights-of-way  DAC provided the County with several options and methods to advertise for public input and collect and compile the responses themselves to help in the prioritization of the Transition Plan  County staff are currently using DACTrak to update and manage the Transition Plan 10.b Packet Pg. 181 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 8 City of Victorville Christian Guntert Director of Community Services 14343 Civic Drive Victorville, CA 92392 Phone: (760) 955-5262 cguntert@ci.victorville.ca.us Project name: ADA Self-Evaluation and Transition Plan  DAC is currently conducting an ADA self-evaluation and transition plan for city buildings, facilities, airport, parks, public rights-of-way and signalized intersections  DAC is also assisting the City to prepare the responses to their annual Caltrans audit and on-going HUD audits  DAC is also assisting the City to advertise their current request for public input, and compiling the results of the responses.  The City is currently using DACTrak to implement their transition plan City of Carlsbad Ed Garbo Risk Manager 1635 Faraday Avenue Carlsbad, CA 92008 Phone: (760) 602-2471 Ed.garbo@carlsbadca.gov Project Name: ADA Self-Evaluation and Transition Plan  DAC conducted an ADA self-evaluation and transition plan for City buildings, facilities, and parks.  DAC has also assisted the City to successfully prepare and respond to a current Caltrans audit.  DAC also assisted the City to perform a self-evaluation of services, policies, programs and practices.  DAC is providing ongoing, as needed additional consultation such as plans review.  The City is currently using DACTrak to implement their transition plan. City of Palm Springs James Thompson City Clerk 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 Phone: (760) 323-8204 jay.thompson@palmsprings-ca.gov Project Name: ADA Self-Evaluation and Transition Plan  DAC conducted an ADA self-evaluation and transition plan for City buildings, golf courses, pools, airport, parks and public rights-of- way  DAC has also assisted the City to successfully prepare and respond to a recent Caltrans audit  The City is currently using DACTrak to implement their transition plan. City of La Quinta Terry Deeringer Was Human Resources/General Services Manager of City of La Quinta at time of services 78495 Calle Tampico La Quinta, CA 92253 Current contact information as Director of Human Resources & Risk Management for City of Indio Phone: (760) 391-4008 Tdeeringer@indio.org Project Name: ADA Self-Evaluation and Transition Plan  DAC has provided the City with an ADA self-evaluation and transition plan for City buildings, parks, intersections and public rights-of-way  The City is currently using DACTrak to implement their transition plan.  Additionally, DAC provided the City with an assessment of City policies and programs to determine if any were discriminatory to individuals with disabilities. 10.b Packet Pg. 182 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 9 City of Claremont Jeff Baughman Building Official 207 N Harvard Avenue Claremont, CA 91711 Phone: (909) 399-5477 jbaughman@ci.claremont.ca.us Project Name: ADA Self-Evaluation and Transition Plan  DAC provided ADA self-evaluation and transition plans of buildings, parks, intersections, roadways, sidewalks and public rights-of-way.  The City was provided DACTrak Accessibility Management Software to manage the implementation of the plan, document resources needed and document progress.  DAC also conducted the ADA self-evaluation of programs, services and activities to determine if any were discriminatory for individuals with disabilities and provided the City with an Executive Summary detailing the results and recommendations. County of Butte Grant Hunsicker Director of General Services 2081 2nd Street Oroville, CA 95965-3413 Phone: (530) 538-2511 Ghunsicker@buttecounty.net Benjamin Matray County Architect General Services Department 2081 2nd Street Oroville, CA 95965-3413 Phone: (530) 538-6056 bmatray@buttecounty.net Project Name: ADA Self-Evaluation and Transition Plan  DAC is currently working with the County to inspect County facilities for compliance with the Americans with Disabilities Act and California Building Code.  DAC is also performing a review of County policies, grievance procedures and public notices to evaluate their compliance with the ADA and suggest alternatives if necessary.  DAC is assisting the County in developing their updated transition plan.  DAC has provided training to County staff on ADA compliance, methods for reasonable accommodations, and effective communications with individuals with disabilities. City of San Clemente Johanne Thordahl Risk Mgmt. Analyst 100 Avenida Presidio San Clemente, CA 82672 Phone: (949) 361-8203 ThordahlJ@san-clemente.org Project Name: ADA Self-Evaluation and Transition Plan  ADA self-evaluation and transition plans of buildings, parks, piers, beach areas, golf course, pools, beach concessions, lifeguard areas, trails and public rights-of-way.  The City was provided DACTrak Accessibility Management Software to manage the implementation of the plan, document resources needed and document progress.  The ADA self-evaluation of programs, services and activities to determine if any were discriminatory for individuals with disabilities was completed by DAC.  DAC also assisted with the resolution of two complaints. Disability Access Consultants has never been removed from a project or disqualified from proposing on a project. SUBCONSULTANTS DAC does not use subcontractors or subconsultants, as DAC prefers team members that have direct accountability and training by DAC to provide a seamless project delivery and interaction with City staff. SCOPE OF WORK Disability Access Consultants (DAC) understands that the City of San Luis Obispo (City) is seeking a qualified firm to inspect, evaluate and prepare reports identifying potential barriers in the City-owned buildings, parks, parking lots and public rights-of-way. The inspections will identify barriers or potential barriers in accordance with applicable Federal and State accessibility standards and regulations. In addition, it is understood that DAC will assist the City in developing 10.b Packet Pg. 183 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 10 a schedule for barrier removal over time in a cost effective and realistic manner, using programmatic solutions where available. In order to successfully complete the project activities in a timely manner, DAC will work closely and collaboratively with the City of San Luis Obispo without imposing unnecessary interruptions or burdens to City staff. During the past 18 years, Barbara Thorpe and her team have developed ongoing working relationships with City and County governments and have worked diligently to have clear lines of communication. DAC has the extensive knowledge and experience with all Federal and State regulations during the past 18 years in business, that includes, but is not limited to the ADA up to and including the current 2010 American’s Disability Act Standards (ADAS), 28 Code of Federal Regulation (CFR) 35, Title 24 California Building Standards Code, Title II of the ADA, PROWAG, MUTCD, Section 504 and related Federal and State Standards and Regulations. Value Added Items to Enhance the Project at No Additional Cost or that Provide a Cost Savings In addition to the above understandings and confirmations, DAC has found through its experience of working with City and County Governments and Joint Power Authorities, such as the California Joint Powers Insurance Authority, of which the City of San Luis Obispo is a member, that certain other items enhance the level of success and implementation of ADA Transition Plans and Self-Evaluations by public entities. The California JPIA (CJPIA) offers a discounted price to its members that has been negotiated with DAC. The CJPIA is also assisting members, such as the City, with costs for selected services for ADA compliance. The use of DACTrak by City staff to conduct surveys at facilities, process reports and manage the information to implement and document the plan may assist the City to more efficiently and effectively achieve the City’s project objectives and will provide longevity to the plan. As an additional value at no cost, DAC provides at least one photograph of each noncompliant accessible item or element, a record number for reference, estimated costs and other features to assist with the implementation of the Transition Plan. To provide for easy management of the transition plan and documentation of compliance efforts, DAC has developed web-based software called DACTrak. DACTrak is a powerful tool to manage and update the accessibility plan, project costs and document progress. Custom reports can be easily prepared, printed and saved in a variety of formats. Disability Access Consultants (DAC) includes the following additions at no additional cost:  Noncompliant findings and recommendations are included in the DACTrak software  One or more photographs of each noncompliant finding are included  Additional photographs can be viewed of the noncompliant item by one click  DACTrak provides a method to schedule and track the barrier removal  Documentation of progress and compliance using the progress reporting feature of DACTrak  Priorities can be established and further refined using DACTrak 10.b Packet Pg. 184 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 11 DACTrak provides for an organized input method that captures all of the information gathered from the site inspections with photographs for each noncompliant finding. In essence, all of the field information is captured in a web-based software package and provides for “green” data collection and avoids paper and pencil checklists and unorganized photographs. DACTrak can also be used on a tablet pc to add new facilities and update compliance assessments and transition plans. DAC has also found that having usable “software” and not just a database is very important to be able to easily manage and update the transition plan. Our extensive experience with clients needing to have an easy to manage and update plan was the catalyst for DAC to develop our DACTrak software for use by our clients. Thus, other critical issues include:  Software to update and manage your Transition Plan  The ability to document progress and barrier removal  The ability to print custom reports  The ability to update the plan “automatically” when codes change without re-inspecting sites  The ability to project costs  The ability to add or delete facilities DAC’s collection of actual measurements of as-is conditions and GIS information for public rights-of-way is another value added item. The collection of an as-is condition is a valuable asset to allow the user to make an informed decision based on an actual measurement. For example, if a “yes” or “no” approach is utilized to indicate if an item is compliant, the user may not know what the actual level of noncompliance is and would not be able to set a priority or severity rating. If codes change, the information collected can be reprocess without the need to re-inspect, thus providing longevity of the plan and internal capacity of the City in a cost effective manner. SCOPE OF WORK OVERALL PHASES DAC proposes to execute the project in two phases. Detailed activities and deliverables are provided in the following scope of work description. Phase I: Study and Evaluation - Self-Evaluation/Facility Survey/Barrier Assessment a) DAC will conduct an initial project kick-off meeting, if requested, with selected City of San Luis Obispo staff to establish roles and lines of communication, refine project goals, review the overall project schedule, schedule surveys of City of San Luis Obispo facilities and identify key City of San Luis Obispo personnel related to the project scope. Initial self-evaluation activities will be completed during this step. b) The initial orientation meeting should include an assessment of previous compliance activities and areas of current or potential litigation. The review of compliance activities and high priority areas will assist with the development of an overall project plan. The review and documentation of prior initiatives will also build a more defensible plan if the City is challenged by litigation. c) DAC will conduct field surveys of the buildings and facilities listed in the property schedule, as well as the City maintained public rights-of-way to sidewalks, curb ramps and signalized intersections. d) Surveys will identify all physical barriers (interior and exterior) including the path of travel in and around the facility and from the public right-of-way at each site in accordance with Title 24 of the California Building Code and the ADA Standards (previously referred to as ADAAG). e) DAC currently provides geographical information (latitude and longitude) for each identified exterior barrier in the public right-of-way that can be incorporated into the City’s Geographical Information System (GIS). DAC incorporated the map-linked GIS feature based on the needs of many of our City and County clients. DAC uses a comprehensive approach to inspecting public rights-of-way (PROW). In order to conduct an assessment of all the requirements in the PROW, DAC conducts manual measurements of the field conditions and enters the information into our DACTrak pc tablet in the field. DAC has found that the use of automated equipment for running slopes on sidewalks, such as ultra-light profilers, do not provide 10.b Packet Pg. 185 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 12 an actual measurement, but only provide a chart showing ranges. In some cases, if a change in level is greater than ½ inch, no actual quantifiable information is reported of how much greater or of the severity. In order to get the actual measurements for the sidewalks and intersections, the use of a “profiler” does not provide the measurements needed for items such as automated pedestrian signals and street furniture. f) As required by the ADA, the 2010 ADA Standards will be compared with state codes (Title 24 of the California Building Code) and the standard that provides the greater level of accessibility utilized. As DAC collects as-is field conditions and records all information, data can be reprocessed if codes change without conducting a re-inspection, thus resulting in a significant savings when codes change and the plan needs to be updated. g) Provisions and standards for historic buildings will be applied as appropriate. h) Assessments and reports will include a high degree of detail with photographs, code references, and cost estimates. The DACTrak software and reports will include additional specifics, such as as-built dimensions, progress reports, additional prioritizations, preset reporting features and other custom reports. Reports will be delivered in the format requested, and reports will also be available using DACTrak. The inclusion of photographs showing the as-is condition has proven to be valuable assistance to clients in the formulation of the decisions regarding barrier removal priorities. The DACTrak software provides an easy to use accessibility management platform that exceeds the ability to manage the plan by hard copies and binders. The assessment report of each facility will include cost estimates to correct deficiencies in accordance with the ADA, Title 24 of the California Building Code. i) Barriers are identified by building, floor, or location and given a unique identifier record number (UIN) to assist with navigation in the accessibility software and location of the finding and recommendation by area and site. Estimated applicable costs will be given by item and element in accordance with industry standards. Costs can be easily adjusted to adhere to any cost estimates the City may utilize. j) Physical access problems that require structural solutions will be documented in the Compliance Assessment/Transition Plan. The proposed method for removal will be provided. The transition plan will identify physical barriers that may limit accessibility of City programs, services or activities for individuals with disabilities. The schedule for removal of barriers and appropriate timelines will be developed in consultation with the City. k) The field survey information will be presented to the ADA Compliance Team as requested using the DACTrak web-based accessibility management system. Many different types of reports will be available for the City. Feedback will be incorporated as appropriate. l) The survey data will be compiled into a Transition Plan which will identify actual as-is conditions and prioritize current barriers, provide a schedule for barrier removal, as well as establish procedures for addressing future accessibility issues. The Transition Plan data is able to be exported to Excel or PDF formats. The Transition Plan data will include photographs, findings, recommendations, code references, estimated costs, priority settings (in addition to prioritized report) in accessibility software for accessibility management. Photographs and GIS coordinates are valuable for the development of the transition plan. m) DAC will assist the City to solicit input from members of the community and persons with disabilities. Methods will be utilized to solicit public input may include notices, information on the website and surveys. n) The Transition Plan data will be provided using DACTrak which has management, monitoring, and web- based tracking tools that allow staff to manage current and future accessibility issues, update the deficiency status, and generate reports to show progress in meeting the Transition Plan requirements. Phase II: Implementation Phase - Transition Plan Development a) DAC will develop, in collaboration with the City a comprehensive ADA Self-Evaluation and Transition plan for facilities, buildings, parks and public rights-of-way. b) DAC will develop a first draft of the ADA Transition Plan with recommended priority levels. c) DAC will meet with the City to review the draft document and incorporate any comments, changes or feedback. d) DAC will assist the City to conduct public outreach activities that may include website announcements, 10.b Packet Pg. 186 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 13 postings, surveys, announcements, individual meetings and other activities as requested. e) DAC will prepare and produce a second draft if necessary with a detailed description of the barrier and the proposed method for barrier removal. f) DAC will train the City in the use of the DACTrak web-based accessibility management system to prepare reports as well as update and manage the ADA Plan. g) DAC will provide an executive summary of the project. h) If requested, DAC can present the draft ADA Transition Plan at a regularly scheduled council meeting for discussion and for informational purposes. DAC does not recommend that the plan be adopted by the City, as adoption is not required and may cause additional discussion regarding projected dates in the plan that are meant to be “projected and estimated dates” and not final dates of barrier removal. i) DAC will provide the City with DACTrak, a web-based monitoring, tracking, and management system at project completion. DACTrak allows users to review and update progress in barrier removal, and to generate many different styles of reports to document progress. DACTrak contains one or more integrated photographs that are attached to the finding, eliminating the need to reference another area or report supplement. DACTrak is an actual accessibility management software, not just electronic database of items contained in the Facility Survey Report. DAC has found that an electronic database or Excel format does not provide the City with a tool containing integrated photographs needed to implement the plan, set priorities, make notes and print custom reports. If the City does not want to use the software, the data can be placed in an Excel spreadsheet.  DAC will license DACTrak to the City to manage all of the field data collected, print custom reports, document progress, estimate costs and perform other management functions;  Data collected will be the property of the City should the City decide for any reason not to continue to use the DACTrak accessibility intake and management software system;  The California JPIA, of which the City is a member, has an agreement with DAC to pay for the use of DACTrak;  DACTrak will include and provide correlation with field data collected, reports, transition plans, drawings, code references, estimated costs and photographs for each noncompliant accessibility item or element;  Reference maps for GIS information will be provided in addition to a linked mapping system for each item;  DACTrak provides a description, location and record number for each barrier that allows the user to access the information and location j) DAC will provide City staff with training regarding ADA Compliance from both a programmatic and administrative point of view and also for facility management and maintenance. 10.b Packet Pg. 187 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 14 COST PROPOSAL 1. Total Cost for the City of San Luis Obispo facility/park inspections is: $128,800 (Yellow highlights denote items for further discussion or sites that have been removed and/or adjusted from original list during kick-off meeting). Type Facility 1 B CITY HALL 2 B FIRE STATION NO 1 3 B FIRE STATION NO 2 4 B FIRE STATION NO 3 5 B FIRE STATION NO 4 6 B POLICE STATION 7 W WATER TREATMENT PLANT 8 W STENNER HYDRO PLANT 9 B CORPORATION YARD, OPERATIONS AND MAINTENANCE 10 WW WASTEWATER TREATMENT PLANT 11 B CITY/COUNTY LIBRARY 12 B RIFLE RANGE BUILDING 13 B COUNTY MUSEUM 14 B & P JACK HOUSE 15 B CHILDRENS MUSEUM 16 B & P MEADOW PARK AND RECREATION CENTER (includes Exposition Park) 17 B SLO SWIM CENTER 18 P SINSHEIMER PARK 19 P MITCHELL PARK 20 B MITCHELL PARK SENIOR CITIZENS CENTER 21 B WHALE ROCK RESERVOIR 22 B BUS MAINTENANCE FACILITY 23 P LAGUNA LAKE PARK 26 B MARSH STREET PKG GARAGE 27 B ART CENTER FACILITY 28 B PALM STREET PARKING GARAGE 29 B LUDWICK COMMUNITY CENTER 30 P SANTA ROSA PARK 31 B OLD CITY LIBRARY 32 P & R LAGUNA LAKE GOLF COURSE 33 P FRENCH PARK 34 B PARKS & RECREATION ADMIN 35 P ISLAY HILL PARK 36 B UTILTITIES ADMINISTRATION 37 PRADO DAY CENTER 38 B POLICE ANNEX 39 B OFFICE / PARKING STRUCTURE 10.b Packet Pg. 188 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 15 40 P ELLSFORD PARK 41 P STONERIDGE PARK 42 P OSOS/TRIANGLE PARK 43 P LAS PRADERAS PARK 44 P PRIOLO-MARTIN PARK 45 P VISTA LAGO PARK 46 P ANHOLM PARK 47 P EMERSON PARK 48 P JOHNSON PARK 49 P LAGUNA HILLS PARK 50 P THROOP PARK 51 P MISSION PLAZA 52 P MISSION PLAZA EXTENSION 53 P MISSION PLAZA RESTROOM 54 P DAMON-GARCIA SPORTS FIELDS 55 P & R LAUREL LANE COMMUNITY GARDENS 56 P & R BROAD STREET COMMUNITY GARDENS 57 P BUENA VISTA PARK 60 K PARKING LOT #4 61 K PARKING LOT #10 63 K PARKING LOT #14 64 K PARKING LOT #15 B RAILROAD MUSEUM 65 K RAILROAD SQUARE PARKING LOT 66 B RAILROAD TRANSFER CENTER 67 P CHENG PARK 68 O GEARHART/MCBRIDE OPEN SPACE 69 B Emergency Dispatch Center 70 B Fire Storage Building 71 P DEVAUL RANCH PARK 72 B 610 MONTEREY 73 B 633 PALM 74 B 3320 BULLOCK 75 O RESERVOIR CANYON PKING & KIOSK 76 O CERRO SAN LUIS PARKING & KIOSK 77 O IRISH HILLS PARKING & KIOSK 78 O JOHNSON RANCH PARKING & KIOSK 79 P ETO PARK p POINSETTIA MINI PARK 80 P POINSETTIA CREEK WALK 81 T BOB JONES TRAIL 82 P RAILROAD TRAIL 1&2 83 P RAILROAD TRAIL 4 10.b Packet Pg. 189 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 16 84 85 86 O OPENSPACES WITH NO PARKING (JUST STREET PARKING) BISHOP PEAK BOWDEN RANCH SOUTH HILLS TERRACE HILL ISLAY HILL STENNER SPRINGS 2. Total estimated pricing for the inspection of Public Rights-of-Way: $108,070 202 Miles of Sidewalks, Curb Ramps, Intersections, APS Signals Survey of an estimated 202 miles of City roadway miles, including sidewalks, curb ramps and APS Intersections at a not to exceed cost of $108,070 using the rate of $535 per linear mile of sidewalk. DAC will calculate the number of miles of sidewalk surveyed to calculate a total fee based upon the miles surveyed only. For example, if the amount of sidewalk miles is less than the amount allocated, the City will only be invoiced for the linear miles of sidewalk surveyed. The information from the survey will be placed into DACTrak 3. Review of policies, procedures and programs cost: $5,000 Review of policies, procedures and programs and assistance with public input at a cost of $5,000 which is paid by the CJPIA for a net cost of zero. 4. DACTrak Licensing cost: $2,000 As a CJPIA member the cost of DACTrak Software licensing is $2,000/year. The cost includes unlimited seat licenses. Cost Summary 1. Total Cost for the City of San Luis Obispo inspection/surveys of facilities: $128,800 2. Total Estimated Cost for Public Rights-of-Way inspections: $108,070 3. Cost of review of policies, procedures and programs and assistance with public input: $ 5,000 4. DACTrak licensing cost per year: $ 2,000 TOTAL $244,670 10.b Packet Pg. 190 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 17 SCHEDULE: SCOPE OF SERVICES SUMMARY BY ESTIMATED TIMELINES Based upon experience, a project milestone chart is provided in weeks. It is estimated that the project will be completed in five months, or sooner. The chart below is a summary of major milestones and is not necessarily representative of all of the individual project activities. Scope of Service –Activity or Task 1 2 3 4 5 6 7 8 9 10 11 12 DAC Team Meeting with City of San Luis Obispo; kick-off meeting; survey methodologies, deliverables and schedule confirmation Project planning, scheduling, procedures review Review of policies, procedures and practices; analysis of existing plan Collaboration and confirmation of public input process Public input and community outreach Draft Self-Evaluation of services, policies, programs and practices Field inspection data compiled (compiled on a daily basis and available for review throughout the inspection process) Presentation to selected City staff (recommended that the review occur at several milestones, not only at the conclusion) Solicit and record feedback from the City (several opportunities for feedback) Appropriate public input integrated into the surveys for further prioritization Incorporate and integrate the City’s current public right-of-way plan as appropriate Final Draft Deliverables completed and presentation to the City Council Consultant Responsibilities DAC will arrange all project management activities for an efficient process to develop the ADA Transition plan and provide the City with an anticipated project schedule prior to commencement of work. DAC will perform all work in conformance with current City policies and procedures and carry out the instructions received from the City, in cooperation with other City approved and involved agencies. 10.b Packet Pg. 191 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 18 Additional Information Conflict of Interest Statement DAC does not have any financial, business or other relationship with the City that may have an impact upon the outcome of this contract and does not have any current clients that may have a financial interest in the outcome of this contract. Disability Access Consultants has no conflict of interest with the City of San Luis Obispo, any associates, representative, consultants, sub consultants, or others. DAC does not have any conditions that would affect our ability to perform the services described in this proposal. DAC does not have any previous, pending or current litigation. Our firm has not been debarred, suspended or declared ineligible to contract with any federal state or local public agency. The firm, owners or president is not in the Federal Excluded parties List System (EPLS) for Ineligible Professionals and Debarred Contractors. Insurance Coverage and Stability Disability Access Consultants carries all the necessary insurance coverage, such as general liability, automobile liability, worker’s compensation and employer’s liability, and professional errors and omissions malpractice liability insurance. DAC has a no claims record on all policies for our entire 18 years in business and does not have any pending, previous or current litigation. DAC has the financial, operational and staff stability to complete a quality and comprehensive project on time. DAC has no adverse conditions. Minority Utilization and Affirmative Action DAC is an equal opportunity employer and has recruited minorities and veterans. DAC’s quality control team leader is a Vietnam veteran with a disability. Background Checks and Fingerprinting All employees of Disability Access Consultants have been fingerprinted and have background checks. DAC has FBI and DOJ fingerprint clearances on file for DAC staff. We have conducted studies for school districts, state and local governments, the Federal Government, Judicial Chambers and Correctional Institutions that require background checks. DAC has found that background checks are important especially in situations where inspection staff may be working near children, and are required in certain situations. 10.b Packet Pg. 192 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 19 Supplemental Materials Sample DACTrak Screen Shots and Information These samples are generated from the DACTrak Accessibility Management web-based software program. The following screen shots are recent examples of the DACTrak Management software prepared for several public entity clients. Upon logging in to the secure DACTrak website, you are able to choose the facility you would like to view and manage. These two screen shots are examples of facility lists for two recent public entity transition plan projects. 10.b Packet Pg. 193 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 20 After choosing a facility, you are able to use Reports drop down menu to choose which report style to view. You may also choose to view multiple facilities in one report. This screenshot is an example of the home page for a Basic Photo Report. The sort and filter panel allows users to quickly run reports that generate findings for specified locations or categories, or by progress, priority or resolution status. 10.b Packet Pg. 194 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 21 These two screenshots are examples of a finding page in a Basic Photo Report. This type of report shows the user the finding, with accompanying recommendation to correct the non- compliant item, the associated photo, code reference(s), estimated cost to remove the barrier, and any progress that has been added to update the transition plan. 10.b Packet Pg. 195 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 22 This screenshot is an example of a finding page in a Dual Photo Report. This type of report shows the user two findings per page, with accompanying recommendations to correct the non- compliant item, the associated photo, code reference(s), and estimated cost to remove the barrier. 10.b Packet Pg. 196 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 23 The Dual Photo and Basic Photo Reports may be exported to an Excel workbook for easy management of the transition plan data. The Excel workbook exports into a pre-formatted table with the filter function atop each data column. The report is a fully functioning Excel spreadsheet that may be sorted, filtered and manipulated by the user. The column for Picture identification numbers includes cells that are live links to the second tab of the workbook which contains report photos. Clicking the cell for a particular report finding will bring up the associated picture on the Photos tab. 10.b Packet Pg. 197 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 24 Users can update progress using the Tools drop down menu. Record Manager allows each record to be updated individually. Global Progress Editor allows many records to be updated at once with identical information. Priority Manager allows many records to be updated at once with unique information. Record Manager allows the user to choose which record to update individually. 10.b Packet Pg. 198 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 25 Once a record is chosen in Record Manager, the user can set the priority, select the status of progress, add projected and actual dates of completion and also document any notes regarding the record. This screen shot represents an example of a record with progress, updates and comments added. 10.b Packet Pg. 199 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 26 This is an example of Global Progress Editor, where the user may select many records to update at one time. In this example, the category has been filtered to Passenger Loading Zones using the Categories drop down menu. This is an example of Priority Manager, where the user may select many records to update with unique information from one screen. The user may select progress information from the drop down menus and enter dates for each line item. All information is updated with one click of the Submit button. In this example, the category has been filtered to Sinks using the Categories drop down menu. 10.b Packet Pg. 200 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) Disability Access Consultants Proposal to the City of San Luis Obispo for ADA Consulting Services 27 When GPS information is recorded for the location of an outdoor finding, such as the sidewalk report below, a Map Overlay report is available to view on DACTrak. This report shows a map of the area where the survey was performed, and pinpoints the location of the finding. Clicking on the pinpoint brings up a screen showing the finding, recommendation to bring the item into compliance, a photo of the finding and the associated code references. 10.b Packet Pg. 201 Attachment: b - DAC Proposal to City of San Luis Obispo - October 18 2016 [Revision 3] (1526 : MOU with CJPIA for ADA Services) MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding (MOU) is between the California Joint Powers Insurance Authority (CJPIA) and The City of San Luis Obispo (MEMBER) for purposes of authorizing work related to CJPIA’s ADA Assistance Program, which includes conducting self-evaluations and inspections, developing transition plans, and evaluating programs and services. Disability Access Consultants (DAC) will perform all work for MEMBER on behalf of CJPIA in accordance with all terms, covenants, standards and conditions set forth in that certain agreement between the CJPIA and DAC, entered into on November 12, 2015 of which MEMBER shall be considered a third party beneficiary to that agreement, and including any addenda thereof. Copies of the agreement and any addenda thereof are attached hereto as Exhibits “A” (DAC Proposal) and “B” (DAC Agreement and Addendum) respectively and incorporated herein by reference as if fully set forth herein. The City may terminate services provided by DAC pursuant to Section 8, Termination and Modification of the Professional Services Agreement between CJPIA and DAC. This MOU also discloses costs related to the aforementioned work, which will be billed directly to CJPIA. CJPIA will then invoice MEMBER, less the amount of CJPIA ADA Assistance Program funding. MEMBER agrees to pay the invoiced amount within 30 days of billing by CJPIA. 1. Total cost for all work to be performed by DAC, $ 244,670 as per attached DAC written proposal 2. Total program funding provided by CJPIA to be $ 23,500 paid directly to DAC on behalf of MEMBER for the aforementioned work 3. Total amount owed by MEMBER, representing $ 221,170 difference between Line 1 and Line 2, which will be billed by CJPIA ____________________________________ _______________ Katie Lichtig, City Manager Date ____________________________________ _______________ Roy Angel, Sr. Risk Manager, CJPIA Date Attachments: DAC Proposal, DAC Professional Services Agreement (including any addenda) 10.c Packet Pg. 202 Attachment: c - MOU with CJPIA [Revision 2] (1526 : MOU with CJPIA for ADA Services) Page intentionally left blank. Meeting Date: 12/13/2016 FROM: Daryl Grigsby, Director of Public Works Carrie Mattingly, Director of Utilities Shelly Stanwyck, Director of Parks and Recreation Prepared By: Matt Horn, Deputy Director of Public Works and City Engineer SUBJECT: ORDINANCE NO. 1631 (SECOND READING) – AMENDMENT TO SECTION 13.07.030 OF THE SAN LUIS OBISPO MUNICIPAL CODE REGARDING RESTRICTIONS ON OUTDOOR IRRIGATION OF PUBLIC FACILITY TURF WITH POTABLE WATER RECOMMENDATION Adopt an Ordinance to Amend Chapter 13.07.030 of the Municipal Code to allow for the daily watering of designated City turf facilities during their annual renovations and three times per week thereafter to sustain and provide safe public access to the same facilities. DISCUSSION On November 15, 2016, the City Council voted unanimously (4-0) to introduce Ordinance No. 1631 to amend Chapter 13.07.030 of the San Luis Obispo Municipal Code to modify restrictions on outdoor irrigation of public facility turf with potable water. Ordinance No. 1631 (2016 Series) is now ready for adoption and will become effective thirty days after the date of its final passage (Attachment A). ALTERNATIVES 1. The Council may decide not to adopt this ordinance; and 2. The Council could continue final adoption of the proposed amendment and provide direction to staff for research and revisions, which would require re-introduction of the ordinance. Attachments: a - Ordinance 11 Packet Pg. 203 O _____ ORDINANCE NO. 1631 (2016 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTION 13.07.030 OF THE SAN LUIS OBISPO MUNICIPAL CODE REGARDING RESTRICTIONS ON OUTDOOR IRRIGATION OF PUBLIC FACILITY TURF WITH POTABLE WATER WHEREAS, drought conditions have continued through 2016 making it critically necessary to continue to manage water consumption during the ongoing drought to ensure that adequate water supplies are available in the long term in order to protect the public health, safety and welfare; and WHEREAS, in order to preserve eight public facilities utilized for public recreation the City is proposing to allow an exemption for each of them such that they may be annually renovated and watered three times a week to sustain these facilities. The facilities are limited to: Emerson Field, Meadow Park Field, Mission Plaza Turf, Santa Rosa Center Field, Santa Rosa Softball Field, Sinsheimer Stadium, Stockton Field, and Throop Field. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Environmental Determination. The City Council hereby finds that the Ordinance is categorically exempt from environmental review pursuant to CEQA Guidelines Section 15301(h) (Existing Facilities – maintenance of existing landscape). SECTION 2. Action. Section 13.07.030 (Council water conservation powers) of Chapter 13.07 the City of San Luis Obispo’s Municipal Code is hereby amended to add the following language: D. The following public facilities may be allowed to be renovated on an annual as needed basis: Emerson Field, Meadow Park Field, Mission Plaza Turf, Santa Rosa Center Field, Santa Rosa Softball Field, Sinsheimer Stadium, Stockton Field, and Throop Field. Annual renovation shall include an initial germination period during which daily watering at these eight facilities is allowed for a period of up to six weeks. Following renovation, these eight facilities will be allowed to be watered up to three days a week in order to sustain them. SECTION 3. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of t he remaining portions of this ordinance, or any other provisions of the city’s rules and regulations. It is the city’s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. 11.a Packet Pg. 204 Attachment: a - Ordinance [Revision 1] (1531 : ORDINANCE ADOPTION - OUTDOOR IRRIGATION OF PUBLIC FACILITY TURF WITH POTABLE Ordinance No. 1631 (2016 Series) Page 2 O _____ SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the 15th day of November 2016, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of _______, 2016, on the following vote: AYES: NOES: ABSENT: Mayor Heidi Harmon ATTEST: Carrie Gallagher 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 ______________, _________. ______________________________ Carrie Gallagher City Clerk 11.a Packet Pg. 205 Attachment: a - Ordinance [Revision 1] (1531 : ORDINANCE ADOPTION - OUTDOOR IRRIGATION OF PUBLIC FACILITY TURF WITH POTABLE Page intentionally left blank. Meeting Date: 12/13/2016 FROM: Xenia Bradford, Interim Director of Finance Prepared By: Rico Pardo, Accounting Manager/Controller SUBJECT: RESOLUTION EXTENDING THE DELEGATION OF INVESTMENT AUTHORITY TO THE CITY TREASURER THROUGH THE 2016-17 FISCAL YEAR RECOMMENDATION Approve a resolution extending the delegation of investment authority to the City Treasurer through the 2016-17 Fiscal Year. Background The City Council has previously appointed the Director of Finance to serve concurrently as the City Treasurer and has delegated responsibility for making investment decisions on behalf of the City to the City Treasurer. Each quarter the City Treasurer meets with the Investment Oversight Committee (IOC) to review the performance of the investment portfolio to ensure that the investments are managed in accordance with the City’s investment policy. To date, there have been no instances of non - compliance reported to the IOC. A copy of each quarterly investment report is also provided to the City Council for review at the time that it is prepared. The City currently uses an outside professional fund manager, Public Financial Management (PFM) to manage the City’s investments. PFM was selected through a competitive process and manages investments for public agencies throughout the United States. Staff reviewed the current Investment Management Plan to identify potential changes to the existing guidelines and none are being recommended., California Government Code Section 53607 states that the Council’s delegation of investment responsibility to the City Treasurer must be renewed on an annual basis. This report and the accompanying resolution are intended to provide the City Council with the opportunity to extend this delegation of responsibi lity through the end of the 2016-17 Fiscal Year. CONCURRENCES This recommendation is consistent with the City’s Investment Management Plan and California Government Code Section 53607. FISCAL IMPACT Delegating responsibility for making investment decisions to the City Treasurer does not create a fiscal impact, however the delegation of responsibility to the City Treasurer ensures that timely decisions will be made with regard to the City’s investment portfolio and taking into 12 Packet Pg. 206 consideration the City’s operational needs to maintain adequate liquidity to support its ongoing operations. ALTERNATIVES 1. The delegation of responsibility could be made to another member of staff having adequate knowledge of the City’s investment needs and the requirements imposed by the California Government Code (CGC). 2. If the Council declined to delegate this responsibility, then it would become the responsibility of the full Council to make the investment decisions on behalf of the City as directed by Section 53607 of the CGC. This is not recommended as investment decisions must be timely made and must be consistent will all applicable policies and laws and investment decisions should be based on the advice and counsel of professional fund managers who are informed by complex analytical research and a current and through understanding of relevant financial markets. Attachments: a - Delegation of Duties Resolution 12 Packet Pg. 207 R _____ RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, EXTENDING THE DELEGATION OF INVESTMENT AUTHORITY TO THE CITY TREASURER THROUGH THE 2016-17 FISCAL YEAR WHEREAS, it is the policy of the City of San Luis Obispo for the Director of Finance to concurrently hold the position of City Treasurer; and WHEREAS, the City Council has previously delegated the responsibility for making investment decisions to the City Treasurer in accordance with California Government Code Section 53607; and wishes to extend the period of time for an additional year; and WHEREAS, the City Council has reviewed the outcome of the City Treasurer’s investment decisions and now desires to extend the delegation of investment authority to the 2016-17 Fiscal Year; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby extends the delegation of duties related making investments on behalf of the City to the City Treasurer for the 2016-17 Fiscal Year. SECTION 3. The City Clerk shall cause a certified copy of this Resolution confirming the delegation of investment authority to be forwarded to the City Treasurer. Upon motion of ___________________________, seconded by ___________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 13th day of December 2016. ____________________________________ Mayor Heidi Harmon ATTEST: 12.a Packet Pg. 208 Attachment: a - Delegation of Duties Resolution [Revision 1] (1532 : Treasurer Investment Duties Delegation) Resolution No. (2016 Series) Page 2 R _____ ____________________________________ Carrie Gallagher 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 13th day of December 2016. ____________________________________ Carrie Gallagher City Clerk 12.a Packet Pg. 209 Attachment: a - Delegation of Duties Resolution [Revision 1] (1532 : Treasurer Investment Duties Delegation) Meeting Date: 12/13/2016 FROM: Christine Dietrick, City Attorney Prepared By: Kelly White, Legal Assistant SUBJECT: ADOPTION OF ADMINISTRATIVE REVIEW BOARD BYLAWS RECOMMENDATION As recommended by the Administrative Review Board, adopt the inaugural Administrative Review Board Bylaws. DISCUSSION On June 7, 2016, the Administrative Review Board held its inaugural meeting and unanimously voted to recommend the attached bylaws (Attachment A). At that same meeting, the Board voted to establish a regular meeting time of the second Tuesday of each month at 3:00 p.m. This recommended change to the bylaws can be seen in redline on page one, Article 2. Attachments: a - Admin Review Board Bylaws 13 Packet Pg. 210 Administrative Review Board Bylaws MEMBERSHIP The Board consists of three members appointed for two year terms. However, after appointment of the initial board for a two year term, one member is eligible to be appointed for a one year term, and two members are eligible to be appointed for a two year term. Thereafter, appointments will be made in a staggered, every other year pattern, so that the term of one member will expire in one given year, and the term of the other members will expire one year later. Members must be residents and registered voters of the City pursuant to the City of San Luis Obispo City Council Policies & Procedures Manual, and qualified by experience, training or education in the conduct of administrative hearings. ARTICLE 1. FUNCTIONS The Administrative Review Board is established to provide the following functions: A. To conduct and decide, as final decision maker for the City, administrative appeal hearings relating to administrative citations issued for certain contested San Luis Obispo Municipal Code enforcement matters that require a more detailed administrative record. This Board will not hear appeals of citations issued for violations of Title 15 (Building and Construction), which appeals are heard by the Construction Board of Appeals, or appeals of most zoning or subdivision appeals, which are heard by the Planning Commission. B. To issue written decisions based on findings of fact supported by evidence introduced at the hearing in a format sufficient to enable an appellant to challenge the decision by petition for writ to the Superior Court. ARTICLE 2. MEETINGS A. The Board shall meet at least once annually to elect its officers, consider adoption of any policies or procedures, and make any recommendations to the Council. A.B. Regular meetings of the Board shall be held on the second Tuesday of each month at 3:00 p.m. B.C. Other meetings shall be held as needed, in accordance with Municipal Code section 1.24.110 B , unless otherwise agreed in writing by the Appellant and the Department Head of the department that issued the citation that is the subject of the appeal. The agenda for any such meeting shall be publicly posted at least three days in advance of the meeting in a form and manner acceptable to the City Clerk. C.D. Meetings shall be held in the Council Hearing Room, City Hall, 990 Palm Street, San Luis Obispo, California, or at a location otherwise noticed. D.E. In the event the Board desires to hold all or any portion of a meeting at a place other than the City Hall, then the place of such meeting shall be posted on the bulletin board located at 13.a Packet Pg. 211 Attachment: a - Admin Review Board Bylaws (1538 : Adoption of Administrative Review Board Bylaws) the entrance to City Hall prior to the time herein designated for such meetings in accordance with law. ARTICLE 3. OFFICERS A. Officers of the Board shall be a Chairperson and a Vice Chairperson. B. Offices shall be filled from appointed members by voice vote of the voting membership. C. Election of officers shall be held annually at the first meeting held after April 1. D. The City Clerk shall designate a staff person to serve as Secretary to the Board. ARTICLE 4. DUTIES OF THE CHAIRPERSON The Chairperson shall preside at all meetings of the Board. The Chairperson shall preserve order and decorum at all meetings, shall vote on all questions and announce the Board’s decisions on all subjects. ARTICLE 5. DUTIES OF VICE CHAIRPERSON The Vice Chairperson shall act as Chairperson during the temporary absence or incapacitation of the Chairperson. ARTICLE 6. DUTIES OF THE SECRETARY A. It shall be the duty of the Secretary to keep full, true and correct records of the action of the Board and provide each member of the Board with minutes of each meeting. The Secretary shall also audio record the meeting. B. After final action by the Board on an appeal, the Secretary shall transmit copies of the decision to the appellant, Board and City department initiating the administrative citation. C. Minutes will be submitted to the Board for approval at the next meeting. D. The Secretary shall prepare an agenda for each meeting. ARTICLE 7. CONDUCT OF MEETINGS A. Board members should address questions through the Chairperson. B. Members of the audience should address Board members or other persons present through the Chairperson. C. After roll call, the Chairperson shall publicly announce the procedures to be followed to consider the hearing item(s)and then proceed as follows: 13.a Packet Pg. 212 Attachment: a - Admin Review Board Bylaws (1538 : Adoption of Administrative Review Board Bylaws) i. Members of the public wishing to speak in favor of, or in opposition to, the appeal shall be invited to comment. ii. The Chairperson shall introduce the appeal and ask for oral staff reports. iii. The staff report and any administrative citation issued and submitted to the Board shall be placed into the record with all communications received regarding the appeal. Staff reports shall be submitted for all appeal hearings in a form acceptable to the Board. iv. The administrative citation and any documents, photos or other written information provided to the appellant at time of, or prior to, issuance of the administrative citation shall be admitted as prima fascia evidence under Government Code Section 53069.4. v. The appellant or the attorney for the appellant shall be invited to make a presentation on the appeal and to address the staff presentation, public comments or Board questions. D. The City shall have an opportunity to respond to the appellant’s presentation, answer any questions from the Board and may briefly summarize its position. E. The appellant shall have the opportunity to address any final comments, answer any questions from the Board and may briefly summarize its position. F. Thereafter, discussion shall be confined to members of the Board; provided that the Board may at any time prior to a decision on an item, ask questions of City staff, the appellant or any person present as it deems necessary and appropriate to its resolution of the appeal. G. The Board, upon formal motion, shall take action on the appeal. A board member shall not vote unless he or she was present during the entire hearing, unless he or she listens to the tape of the hearing or reads the written hearing record (if any)prior to voting. H. The Board shall issue a written decision, which shall contain, at a minimum, the information required by Municipal Code Section 1.24.130. If the action is other than the staff recommendation, the Board shall direct staff to prepare a proposed decision for Board consideration at the next meeting reflecting the deliberation and conclusion of the Board, which shall be distributed to the Board and appellant at least 72 hours prior to the next meeting. The decision shall include information concerning the appellant’s right of petition for writ and/or right of appeal for a trial de novo to the Superior Court ARTICLE 8. QUORUM A majority of the number of established Board members shall constitute a quorum for the transaction of business. ARTICLE 9. VOTING 13.a Packet Pg. 213 Attachment: a - Admin Review Board Bylaws (1538 : Adoption of Administrative Review Board Bylaws) A. The vote on all motions deciding the appeal may be, but is not required to be, by resolution and a roll call vote shall be taken for the ayes and noes prior to the consideration of the next order of business. All other motions may be by voice vote. B. Failure of any motion resolution or other action to receive two affirmative votes shall result in failure or denial of the motion, resolution or other action. ARTICLE 10. AGENDA In order for items and materials to be included on an agenda or to be acted upon by the Board, they must be submitted to the Secretary of the Board at least 3 days prior to the date on which said request will be considered by the Board, unless a longer period is specified in Chapter 1.24 of the Municipal Code. Such request must be made in writing. (COUNCIL ADOPTED ON______________) 13.a Packet Pg. 214 Attachment: a - Admin Review Board Bylaws (1538 : Adoption of Administrative Review Board Bylaws) Page intentionally left blank. Meeting Date: 12/13/2016 FROM: Katie Lichtig, City Manager Christine Dietrick, City Attorney Prepared By: Derek Johnson, Assistant City Manager SUBJECT: SETTLEMENT AGREEMENT BETWEEN PACIFIC GAS AND ELECTRIC COMPANY RELATED TO DIABLO POWER PLANT CLOSURE JOINT PROPOSAL RECOMMENDATION Receive and file a settlement agreement (Attachment A) between Pacific Gas and Electric Company (PG&E), the County of San Luis Obispo, Coalition of Cities1, San Luis Coastal Unified School District, Friends of The Earth, Natural Resources Defense Council, Environment California, International Brotherhood of Electrical Workers Local 1245, Coalition of California Utility Employees, and Alliance for Nuclear Responsibility. DISCUSSION The purpose of this item is to provide the Council and community with the settlement agreement between the aforementioned parties, which reflects the final terms negotiated with PG&E by the Coalition of Cities in accordance with settlement authority granted by the City Council. No other action is required or requested. Background On June 21, 2016 Pacific Gas & Electric (PG&E) announced that it will close the Diablo Canyon Power Plant (DCPP) when the current operating licenses from the Nuclear Regulatory Commission (NRC) expire in 2024 and 2025. The announcement also stated that a Joint Proposal (Attachment B - Council Reading File) (JP) for the closure had been reached with labor and environmental groups, but required final approval by the California Public Utilities Commission (CPUC) and was contingent on the extension of current leases with the State Lands Commission (SLC), for the ocean intake and outfall structures. On June 23, 2016, the City Council held a special meeting and approved a letter to the SLC in support of the extension of the leases. At the SLC meeting on June 28, the Commission unanimously approved the extension of the lease. On July 12, 2016, the City Council approved a set of guiding principles (Attachment C) to guide staff in the process of providing input at the public meetings regarding the closure, in general stakeholder discussions and in any potential CPUC filings as it relates to PG&E’s commitment to the community. Following the approval these guiding principles and the filing of the JP by PG&E, a Coalition of 1 The City of Arroyo Grande, The City of Atascadero, The City of Morro Bay, The City of Paso Robles, The City of Pismo Beach, The City of San Luis Obispo. 14 Packet Pg. 215 Cities was formed in September on behalf of their residents to proactively address the issues related to the planned closure of the DCPP. The guiding principles served as a common foundation amongst the cities for reaching any agreement with PG&E on safety, land use, desalination, and financial assistance to help support regional economic stability. Following the formation of the Coalition of Cities, a comprehensive protest filing (Attachment D - Council Reading File) was made with the CPUC to argue points in support of the guiding prin ciples. The Coalition of Cities, the County of San Luis Obispo, San Luis Coastal Unified School District and nearly 40 other parties filed protests or petitions to intervene in the CPUC process. Almost immediately following the protest filing, PG&E and the Coalition of Cities began settlement discussions. After nearly two months of negotiations, the Coalition of Cities reached an agreement in collaboration with the County of San Luis Obispo. The City Council was briefed in closed session as the settlement discussions progressed and provided final settlement authority. Settlement Agreement The settlement agreement addressed all of the issues that were identified by the guiding principles and has four key components summarized below: 1. A $10 million Economic Development Fund to ease the local economic impacts of the plant’s closure. The Coalition of Cities will receive $5.76 million, the County will receive $3.84 million (Grover Beach will receive $192,000 from the County’s portion of the Fund), and the remaining $400,000 will be allocated for regional economic development activities. The cities receiving allocations from the $5.76, million portion of the Economic Development Fund are San Luis Obispo ($1.82), Arroyo Grande ($747,442), Atascadero ($783,106), Morro Bay ($497,472), Paso Robles ($1.15) and Pismo Beach ($767,028). Each agency will issue an annual report, which describes how the funds are used and assesses the resulting economic development measures or programs. The reports will be available to PG&E, the CPUC and the public. 2. A $75 million Essential Services Mitigation Fund to offset the potential negative impacts to essential public services provided to the community. This will be distributed to the County in nine equal annual installments through 2025 and the County will redistribute the funds to 71 local agencies whose budgets are impacted by the inevitable decrease in unitary tax funding from the power plant. The City of San Luis Obispo will receive a portion of this Fund. The SLCUSD will receive the bulk of this funding. 3. Continued funding of offsite community and local emergency planning efforts until all spent fuel is in dry cask storage and the two nuclear reactors are fully decommissioned. Total funding in this area could range between $37.5 million and $62.5 million over the course of 15 to 25 years. 4. An agreement from PG&E that it will not take actions or make decisions on the re -use or sale of land surrounding the power plant, including Wild Cherry Canyon, until PG&E has completed a site-specific decommissioning plan with input from the community. CONCURRENCES The settlement agreement is consistent with the approved guiding principles and settlement authority granted by the City Council. 14 Packet Pg. 216 ENVIRONMENTAL REVIEW The settlement agreement is not a project as defined under the California Environmental Quality Act (CEQA) because the settlement agreement does not by itself grant any public works construction activities, clearing or grading of land, improvements to existing structures, enactment and amendment of zoning ordinances, and adoption and amendment of local general plans. Furthermore, the settlement agreement is subject to the California Public Utilities Commission discretion that has the sole authority with respect to permitting and licensing, or other entitlements related to the DCPP. FISCAL IMPACT According to a 2013 report prepared in coordination with the Nuclear Energy Institute, Cal Poly’s Orfalea College of Business and Productive Impact, the DCPP impact on the county is nearly $1 billion annually, encompassing jobs, schools, infrastructure and other businesses. If Diablo were to shutter, according to the study, the county would lose over 3,200 jobs in virtually every sector and the San Luis Coastal School District would lose 11.6 percent of its annual budget. The Coalition of Cities will receive $5.76 million, the County will receive $3.84 million, and the remaining $400,000 will be allocated for regional economic development activities. Of the $5.76 million, the City of San Luis Obispo will receive $1.8 million for economic development purposes. This funding will be available 30 days following final approval by the CPUC which could occur in 2018 but the process timeline is not fixed. Moreover, the City along with the region will benefit from the update of a regional economic strategy that takes into account the DCPP closure. Staff will return to the City Council at a future meeting with recommended guidelines on how to put these funds to use consistent with the settlement agreement. In addition to the economic development funding, the City will receive approximately $140,000 per year in additional property tax for the next nine years and other funding to address emergency preparedness for a total of approximately $200,000. These funds will come from the $75 million in property tax monies which were negotiated by the County of San Luis Obispo and the on-going support for emergency preparedness and response, respectively. The settlement agreement enumerates the amount that each local agency will receive in the County. All of the funds from the settlement agreement meet the definition of one-time funds. In other words, these one-time payments will be proposed to be budgeted accordingly in the Financial Plan. ALTERNATIVES The City Council could choose not to file the settlement agreement. This is not recommended as the records of City Council meetings are routinely reviewed by the public and general transparency principles dictate that including the settlement agreement is a best practice. 14 Packet Pg. 217 Attachments: a - Settlement Agreement on Community Impact Mitigation_Execution Copy b - Joint Proposal - Council Reading File c - Guiding Principles d - Coalition of Cities CPUC Filing - Council Reading FIle 14 Packet Pg. 218 BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Application of Pacific Gas and Electric Company for Approval of the Retirement of Diablo Canyon Power Plant, Implementation of the Joint Proposal, And Recovery of Associated Costs Through Proposed Ratemaking Mechanisms (U 39 E) Application 16-08-006 (Filed August 11, 2016) SETTLEMENT AGREEMENT BETWEEN PACIFIC GAS AND ELECTRIC COMPANY (U 39 E), THE COUNTY OF SAN LUIS OBISPO, THE CITY OF ARROYO GRANDE, THE CITY OF ATASCADERO, THE CITY OF MORRO BAY, THE CITY OF PASO ROBLES, THE CITY OF PISMO BEACH, THE CITY OF SAN LUIS OBISPO, THE SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT, FRIENDS OF THE EARTH, NATURAL RESOURCES DEFENSE COUNCIL, ENVIRONMENT CALIFORNIA, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 1245, COALITION OF CALIFORNIA UTILITY EMPLOYEES, AND ALLIANCE FOR NUCLEAR RESPONSIBILITY 14.a Packet Pg. 219 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 1 SETTLEMENT AGREEMENT BETWEEN PACIFIC GAS AND ELECTRIC COMPANY (U 39 E), THE COUNTY OF SAN LUIS OBISPO, THE CITY OF ARROYO GRANDE, THE CITY OF ATASCADERO, THE CITY OF MORRO BAY, THE CITY OF PASO ROBLES, THE CITY OF PISMO BEACH, THE CITY OF SAN LUIS OBISPO, THE SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT, FRIENDS OF THE EARTH, NATURAL RESOURCES DEFENSE COUNCIL, ENVIRONMENT CALIFORNIA, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 1245, COALITION OF CALIFORNIA UTILITY EMPLOYEES, AND ALLIANCE FOR NUCLEAR RESPONSIBILITY The County of San Luis Obispo (“County”), the Cities of Arroyo Grande, Atascadero, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo (collectively, the “Cities”), the San Luis Coastal Unified School District (“District”), Pacific Gas and Electric Company (“PG&E”), and Friends of The Earth, Natural Resources Defense Council, Environment California, International Brotherhood of Electrical Workers Local 1245, Coalition of California Utility Employees, and Alliance For Nuclear Responsibility (together with PG&E, the “Joint Parties” to the Joint Proposal filed as Attachment A to the Application in the above-referenced proceeding) (collectively, the “Parties”), enter into this Settlement Agreement (“Settlement”) as a compromise of their respective litigation positions to resolve the disputed issues between the Parties raised in the above-captioned proceeding. This Settlement addresses the Community Impact Mitigation Program (“CIMP”) proposed by PG&E in this proceeding, including the ratemaking treatment for the CIMP. The Parties request the California Public Utilities Commission’s (“Commission”) approve the Settlement as just and reasonable. BACKGROUND A. On August 11, 2016, PG&E filed this Application seeking the Commission’s approval to implement portions of a Joint Proposal for the Retirement of Diablo Canyon Power Plant (“Joint Proposal”). Concurrent with filing the Application, PG&E also served its Prepared Testimony and workpapers. On September 15, 2016, the Cities filed a protest and motion for 14.a Packet Pg. 220 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 2 party status in this proceeding and the District filed a response to the Application. The County served its response on September 15, 2016, but a filing error prevented the response from being docketed. The County filed a motion for leave to late-file a response to the Application on September 23, 2016; the motion was granted and the County formally filed its response October 6, 2016. On September 26, 2016, PG&E filed a reply to the responses and protests filed by parties, including those of the Cities, the County, and the District. B. In its Application, PG&E proposed a $49.5 million fund as part of the CIMP to provide transitional assistance to the local community in connection with the retirement of DCPP. PG&E proposed a stream of mitigation payments between 2017 and 2025 as a way to assist the local community to prepare and plan for the long-term loss of economic stimulus that DCPP provides. PG&E calculated the size of the community impact mitigation payments based upon the forecasted reductions in DCPP property tax base over that same period. The rapid loss of unitary tax funding levels will have significant impacts on the County, the District and 71 other local taxing jurisdictions. C. PG&E entered into settlement discussions with the Cities, the County, and the District to address concerns about PG&E’s proposal. The County, District, and PG&E each met with the the State Board of Equalization (“SBE”) to better understand the unitary tax allocation methodology and the implications for the local community assuming a 2024 (Unit 1) and 2025 (Unit 2) shutdown of DCPP. As a result of these discussions, the Parties have learned that the proposed $49.5 million mitigation fund was based on simplified assumptions and understates the reduction in unitary taxes that is likely to occur over the next 9 years. The County, District, PG&E, and the remaining Joint Parties have reached a compromise on the appropriate funding levels for an Essential Services Mitigation Fund, as set forth in this Settlement. 14.a Packet Pg. 221 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 3 D. Public Utilities Code Section 712.5 (added by Senate Bill (“SB”) 968 (2016, Monning)) requires the Commission to cause an assessment of adverse and beneficial economic impacts for the County and surrounding regions that could occur due to the shutdown of DCPP (“Monning Report”). The Monning Report will review potential actions for the state and local jurisdictions to consider in order to mitigate the economic impacts of a shutdown. The Cities have requested that the Commission review such issues in this proceeding and have expressed concern that the Monning Report will not be completed in time for consideration in the proceeding. The County has suggested the Monning Report be considered in a second phase of this proceeding or a separate proceeding initiated after this proceeding concludes. PG&E has taken the position that such economic impacts are out of scope in this proceeding given the separate procedural path specified by the California Legislature for review. On November 18, 2016, the Assigned Commissioner and Administrative Law Judge filed the scoping memo in this matter, finding community economic impacts to be within the scope of the current proceeding. Notwithstanding that ruling, the Cities, County, PG&E, and the remaining Joint Parties have reached a compromise on the procedural path for the future evaluation of economic impacts and the creation of an Economic Development Fund, as set forth in this Settlement. E. In the Application, PG&E also proposed to continue support for local emergency planning and preparedness after the cessation of plant operations in 2025. The County has requested assurances that PG&E’s commitment to supporting local emergency planning and preparedness will also continue for the duration of DCPP’s operation through 2025 as well as after the cessation of plant operations. The County, PG&E, and the other Joint Parties have reached a compromise that provides these assurances, as set forth in this Settlement. 14.a Packet Pg. 222 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 4 SETTLEMENT TERMS AND CONDITIONS In order to avoid the risks and costs of litigation, the Parties agree to the following terms and conditions as a complete and final resolution of the CIMP-related issues between the Parties in this proceeding, subject to reservations of rights set forth herein by the County, the District, the Cities, and PG&E to address economic impact issues in a future proceeding informed by the Monning report and other subsequently developed economic impact data. Not all Parties have agreed to all terms set forth in the Appendices to this Agreement. Each of the Parties has agreed to support those Appendices described in Sections 1-3, below, in which the specific Party is named. Each of the Parties agree not to oppose any terms set forth in the Appendices to this Settlement to which the Party has not specifically agreed. 1. Essential Services Mitigation Fund 1.1. The County, District, PG&E, and the Joint Parties agree to the terms governing an Essential Services Mitigation Fund, as set forth in Appendix 1 to this Settlement. 2. Evaluation and Mitigation of Regional Economic Impacts 2.1. The Cities, County, PG&E, and the Joint Parties agree to the terms governing the evaluation and mitigation of regional economic impacts, including the process for further consideration of the Monning Report and the creation of an Economic Development Fund, as set set forth in Appendix 2 to this Settlement. 3. Emergency Planning and Preparedness and Future Land Use 3.1. The County, PG&E, and the Joint Parties agree to the terms governing emergency planning and preparedness and the future use and disposition of DCPP lands, as set forth in Appendix 3 to this Settlement. 14.a Packet Pg. 223 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 5 4. Support for Other Provisions of the DCPP Application 4.1. The Parties agree it is critical to retain the highly-skilled workforce at Diablo Canyon during the remaining years of operations in order to continue safe and relaible operations. The Parties support the approval of the Employee Program as described in Chapter 7 of the DCPP Application. 4.2. The County, Cities, and the District have reviewed all other portions of PG&E’s Application, testimony, and workpapers and do not oppose or take no position on the relief requested in PG&E’s Application, as modifed by this Settlement. 5. Modification to the Joint Proposal 5.1. This Settlement results in a modifcation to Section 4 of the Joint Proposal, by and among PG&E, Friends of The Earth, Natural Resources Defense Council, Environment California, International Brotherhood of Electrical Workers Local 1245, Coalition of California Utility Employees, and Alliance For Nuclear Responsibility. The Joint Parties hereby agree upon and support such modification. GENERAL PROVISIONS 6. Scope and Approval 6.1. In accordance with Rule 12.5, the Parties intend that Commission adoption of this Settlement will be binding on the Parties, including their legal successors, assigns, partners, members, agents, parent or subsidiary companies, affiliates, officers, directors, and/or employees. Unless the Commission expressly provides otherwise, and except as otherwise expressly provided herein, such adoption does not constitute approval or precedent for any principle or issue in this or any future proceeding. 14.a Packet Pg. 224 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 6 6.2. The Parties agree that this Settlement is subject to approval by the Commission. After the Parties have signed this Settlement, the Parties shall jointly file a motion for Commission approval and adoption of this Settlement, which may be submitted along with additional partial settlements in this proceeding. The Parties will furnish such additional information, documents, and/or testimony as the ALJ or the Commission may require in granting the motion adopting this Settlement. 6.3. The Parties agree to support the terms of this Settlement to which they have expressly agreed and to use their best efforts to secure Commission approval of those terms in their entirety without modification. 6.4. The Parties agree to recommend that the Commission approve and adopt this Settlement in its entirety without change. 6.5. The Parties agree that, if the Commission fails to adopt this Settlement in its entirety and without modification, the Parties shall convene a settlement conference within fifteen (15) days thereof to discuss whether they can resolve the issues raised by the Commission’s actions. If the Parties cannot mutually agree to resolve the issues raised by the Commission’s actions, the Settlement shall be rescinded and the Parties shall be released from their obligation to support the Settlement. Thereafter, the Parties may pursue any action they deem appropropriate, but agree to cooperate in establishing a procedural schedule. 6.6. The Parties agree to actively and mutually defend all terms of this Settlement to which each Party has agreed if the adoption of those terms is opposed by any other party. 6.7. This Settlement constitutes a full and final settlement of all issues reviewed by the County, Cities, and District in the above-captioned proceeding. This Settlement constitutes the Parties’ entire settlement concerning the CIMP, which cannot be amended or modified without the express written and signed consent of all the Parties hereto. 14.a Packet Pg. 225 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 7 7. Miscellaneous Provisions 7.1. The Parties agree that no signatory to the Settlement or any employee thereof assumes any personal liability as a result of the Settlement. 7.2. If any Party fails to perform its respective obligations under the Settlement, the other Party may come before the Commission to pursue a remedy including enforcement. 7.3. The provisions of this Settlement are not severable. If the Commission, or any competent court of jurisdiction, overrules or modifies as legally invalid any material provision of the Settlement, the Settlement may be considered rescinded as of the date such ruling or modification becomes final, at the discretion of the Parties. 7.4. The Parties acknowledge and stipulate that they are agreeing to this Settlement freely, voluntarily, and without any fraud, duress, or undue influence by any other party. Each party states that it has read and fully understands its rights, privileges, and duties under the Settlement, including each Party’s right to discuss the Settlement with its legal counsel and has exercised those rights, privileges, and duties to the extent deemed necessary. 7.5. In executing this Settlement, each Party declares and mutually agrees that the terms and conditions to which it has expressly agreed are reasonable, consistent with law, and in the public interest. 7.6. No Party has relied, or presently relies, upon any statement, promise, or representation by any other Party, whether oral or written, except as specifically set forth in this Settlement. Each Party expressly assumes the risk of any mistake of law or fact made by such Party or its authorized representative. 7.7. This Settlement may be executed in separate counterparts by the different Parties hereto with the same effect as if all Parties had signed one and the same document. All such 14.a Packet Pg. 226 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 8 counterparts shall be deemed to be an original and shall together constitute one and the same Settlement. 7.8. Except as otherwise specifically provided in Appendix 2 specifying time of payment of the Economic Development Fund within 30 days after Commission’s approval of the Application, Joint Proposal, and this Settlement, this Settlement shall become effective and binding on the Parties as of the date it is approved by the Commission in a final and non- appealable decision. 7.9. This Settlement shall be governed by the laws of the State of California as to all matters, including but not limited to, matters of validity, construction, effect, performance, and remedies. The Parties mutually believe that, based on the terms and conditions stated above, this Settlement is reasonable in light of the whole record, consistent with the law, and in the public interest. The Parties’ authorized representatives have duly executed this Settlement on behalf of the Parties they represent. PACIFIC GAS AND ELECTRIC COMPANY Name: Title: Date: COUNTY OF SAN LUIS OBISPO Name: Title: Date: 14.a Packet Pg. 227 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 9 SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT Name: Title: Date: CITY OF ARROYO GRANDE Name: Title: Date: CITY OF ATASCADERO Name: Title: Date: CITY OF MORRO BAY Name: Title: Date: CITY OF PASO ROBLES Name: Title: Date: CITY OF PISMO BEACH Name: Title: Date: CITY OF SAN LUIS OBISPO Name: Title: Date: FRIENDS OF THE EARTH Name: Title: Date: 14.a Packet Pg. 228 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 10 NATURAL RESOURCES DEFENSE COUNCIL Name: Title: Date: ENVIRONMENT CALIFORNIA Name: Title: Date: INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 1245 Name: Title: Date: COALITION OF CALIFORNIA UTILITY EMPLOYEES Name: Title: Date: ALLIANCE FOR NUCLEAR RESPONSIBILITY Name: Title: Date: 14.a Packet Pg. 229 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 1 Appendix 1 - Essential Services Mitigation Fund Terms (District/County/PG&E) 1. The Essential Services Mitigation Fund (“ESMF”) will be increased from $49.5 million to $75 million, of which $10 million will be dedicated to an educational foundation to be designated by the San Luis Coastal Unified School District (“District”). These funds, including the $10 million portion to be dedicated to a District educational foundation, will be distributed to San Luis Obispo County (“County”) in nine equal annual installments through 2025. The funds will be distributed on September 1st of each year, following a final and non-appealable CPUC decision approving the settlement and the DCPP Application, as revised. If final and non-appealable CPUC approval of this settlement is not obtained by September 1, 2017, the first distribution will occur 30 days after such approval is issued, unless otherwise agreed. The parties will meet and confer within 30 days of the filing of any application for rehearing or appeal of the CPUC decision approving this Settlement. The payments will continue as scheduled for the full 9 year period even in the event one or both DCPP Units closes early. The Parties accept the risk that DCPP may close before the scheduled dates in 2024 and 2025 and will not request any additional financial compensation in such an event. 2. The County will redistribute the funds based on a revision of the 2015/2016 unitary factors to the taxing jurisdictions whose unitary tax funding is negatively impacted by the closure of Diablo Canyon within two weeks of receiving the PG&E payment and will cause $2 million of the District’s share of each of the first five installment payments to be deposited into the account of the District’s designated educational foundation. The recalculation of the unitary tax factors will exclude local agencies whose funding is not impacted by unitary tax. The allocation that the County shall use in allocating the ESMF is set forth in Attachment A to this Appendix 1. 3. The parties agree that the compromise they have reached is a settlement and is not intended to be a substitute or in-lieu tax payment. Estimating potential tax revenue declines is simply one of many factors the parties considered in developing an appropriate and reasonable ESMF. 4. The ESMF will be included as part of the overall Community Impact Mitigation Program and collected in rates through the nuclear decommissioning charge over the remaining life of the plant, as described in Chapter 10 of the DCPP Application. 5. The County and District agree to support the Employee Program set forth in the Application and to not oppose the remaining provisions of the Application, as may be modified through settlements with other parties. 6. This term sheet is subject to (i) final approval by all parties; (ii) negotiation and execution of a final settlement agreement; (iii) agreement by the Joint Parties to the PG&E Joint Proposal for Diablo Canyon (to the extent the terms and conditions result in modifications to the Joint Proposal) and (iv) approval by the CPUC. 14.a Packet Pg. 230 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 1 | P a g e Attachment A to Appendix 1: Distribution of the Essential Services Mitigation Fund The Essential Services Mitigation Fund (ESMF) of $75,000,000 is created to assist local jurisdictions whose annual budgets will be impacted by the decline in unitary tax over the next nine years. Local jurisdictions (71) currently receiving unitary tax include the County of San Luis Obispo, Incorporated Cities, Special Districts and Basic-Aid School Districts. The San Luis Obispo County Auditor-Controller-Treasurer-Tax Collector has developed Schedule 1 by starting with 2015/2016 unitary factors and redistributing the percentages allocated to agencies whose budgets are not impacted by the decline in unitary tax. Those agencies’ (non-basic aid schools and redevelopment agencies) percentages were redistributed based on the actual 2015/2016 unitary factors so that the allocations of the ESMF include only those agencies whose annual budgets are adversely impacted by the closure of DCPP. The County Auditor-Controller-Treasurer- Tax Collector will distribute the amounts identified in Schedule 1 to the 71 agencies within two weeks of receiving the annual payment by PG&E. The ESMF is not Unitary Tax and will not change any prescribed Unitary Tax distributions. The ESMF will be distributed annually in 9 equal and consecutive payments of $8,333,333.33 from PG&E to the County of San Luis Obispo on the 1st of September beginning in 2017. If final and non-appealable CPUC approval of this settlement is not obtained by September 1, 2017, the first distribution will occur 30 days after such approval, unless otherwise agreed. The payments will continue as scheduled for the full 9-year period even in the event one or both DCPP Units closes early. The total distribution to San Luis Coastal Unified School District includes $10 million that will be dedicated to an educational foundation to be designated by the District. The County will cause $2 million of the District’s share from each of the first 5 installment payments to be deposited to the account of the District’s Educational Foundation. The other receiving agencies will not be impacted by this distribution. Schedule 1 Agency Essential Services Mitigation Fund of 75 Million 9 Annual Payments of $8,333,333.33 County of San Luis Obispo – General Fund $3,106,644.19 Roads $130,559.76 Air Pollution Control District $13,202.49 San Luis Obispo County Library $223,570.15 14.a Packet Pg. 231 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 2 | P a g e Schedule 1 – continued Agency Essential Services Mitigation Fund of 75 Million 9 Annual Payments of $8,333,333.33 Garden Farms Water $273.50 Santa Maria Valley Water Conservation District $356.23 Cambria Community Hospital $2,823.44 Cayucos Sanitary District $4,030.04 City of Arroyo Grande $30,202.90 City of Atascadero (including sanitation) $40,440.60 City of Grover Beach $12,615.28 City of Morro Bay $104,716.70 City of Paso Robles $40,387.74 City of Pismo Beach $20,581.13 City of San Luis Obispo $76,962.63 Cachuma Resource Conservation District $210.29 Post San Luis Harbor District $170,300.53 California Valley Community Services District $1,330.71 Nipomo Community Services District $3,608.31 Cambria Community Services District $13,658.70 San Simeon Acres Community Services District $667.65 Templeton Community Services District $5,235.49 Nipomo Sewer Maintenance $103.42 Nipomo Drain Maintenance $103.42 Linne Community Services District $119.51 Grover City Street Light District #1 $2,962.49 San Luis Obispo County Flood Control District $32,067.95 Nacimiento Water Services District $39,975.20 Flood Control Zone 1 $998.60 Flood Control Zone 1A $104.57 Flood Control Zone 3 $1,807.60 Flood Control Zone 9 $3,776.08 County Waterworks No. 8 $344.74 Nipomo Lighting District $241.32 San Miguel Community Services District - Lighting $613.64 County Service Area # 23(former Santa Margarita Lighting) $227.53 County Service Area #1 $65.50 County Service Area #1 Zone A $280.39 County Service Area #1 Zone B $143.64 County Service Area #1 Zone C $52.86 County Service Area #1 Zone D $212.59 County Service Area #7 $288.43 County Service Area #7 Zone A $1,184.77 County Service Area #7 Zone B $265.45 Los Osos Community Services District Zone A $2,022.49 Los Osos Community Services District Zone B $11,629.32 14.a Packet Pg. 232 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 3 | P a g e Schedule 1 – continued Agency Essential Services Mitigation Fund of 75 Million 9 Annual Payments of $8,333,333.33 Los Osos Community Services District Zone C $116.06 Los Osos Community Services District Zone F $66.65 County Service Area #10 $998.60 County Service Area #12 $3,524.42 County Service Area #16 $217.19 Heritage Community Services District $1,740.95 San Miguel Sanitary District $429.78 Oceano Community Services District $5,668.72 Cayucos Fire District $1,290.49 San Miguel Community Services District - Fire $2,090.29 Santa Margarita Fire District $887.14 Arroyo Grande Cemetery District $897.48 Atascadero Cemetery District $2,489.04 Cambria Cemetery District $640.07 Cayucos-Morro Bay Cemetery District $10,058.44 Paso Robles Cemetery District $2,978.58 San Miguel Cemetery District $611.34 Santa Margarita Cemetery District $707.87 Shandon Cemetery District $480.34 Templeton Cemetery District $674.55 Avila Beach County Water District $31,330.20 Avila County Water Improvement District #1 $1,341.05 Coast Unified School District (Cayucos Elem) $16,515.47 Coast Unified School District $54,799.13 San Luis Coastal Unified School District – Note: For the first 5 distributions $2,000,000 will be deposited in the District’s Educational Foundation $4,090,809.51 Annual Total $8,333,333.33 14.a Packet Pg. 233 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 1 Appendix 2 - Economic Development Fund Terms (Coalition Cities/County/PG&E) 1. The Parties agree that the economic impacts of DCPP closure should be considered as a part of a separate CPUC proceeding following issuance of the economic analysis specified in California Public Utilities Code Section 712.5 (“Monning Report”). The Parties support Commission approval of this settlement and proceeding with consideration of the remaining scope of the DCPP Application immediately, without delay for consideration of the economic impacts of DCPP closure. 2. The Parties agree that the DCPP Application should be revised to include a $10 million payment by PG&E to the County and to the Cities of Arroyo Grande, Atascadero, Morro Bay, Paso Robles, Pismo Beach and San Luis Obispo (collectively, the “Coalition of Cities”) to establish a fund for implementation of regional economic development and job creation programs (collectively, the “Economic Development Fund”). The County and the Coalition of Cities agree to further distribute those payments pursuant to the allocation methodology set forth in Attachment A. The purpose of the Economic Development Fund is to provide immediate funding for actions to create new economic development opportunities and mitigate impacts associated with the pending closure of DCPP. 3. Within 18 months of the payment by PG&E of the Economic Development Fund, the County and each of the Coalition of Cities will prepare a report that (i) enumerates and describes the expenditures from the Economic Development Fund and (ii) assesses the results and effectiveness of the economic development measures or programs resulting from such expenditures (the “Initial Report”). The County and each of the Coalition of Cities will prepare subsequent annual updates to the Initial Report until all Economic Development Fund revenues have been expended, at which time the reporting may cease. The Initial Reports and any subsequent updates will be provided to PG&E, and PG&E will submit the reports to the CPUC and make them available to the public. Reports shall report on expenditures on a fiscal year basis. In the event payment of the Economic Development Fund is delayed by any rehearing application or appeal of the CPUC’s decision approving the DCPP Application, the County and each of the Coalition Cities shall be entitled for purposes of the specified reporting to credit against the Economic Development Fund amounts expended by the Cities for purposes of economic development and impact mitigation between the date the CPUC first issues its decision and the date of payment of the Economic Development Fund pursuant to this agreement. 4. The County and Coalition of Cities commit to spending the Economic Development Fund solely for the purposes of economic development and impact mitigation purposes. 5. PG&E shall pay $400,000 of the total Economic Development Fund to the County within 30 days of issuance of a decision by the CPUC approving the DCPP Application and thereafter shall not request any reimbursement of payment from the County or the Coalition of Cities. PG&E shall pay the remaining balance of the Economic Development Fund within 30 days of the final and non-appealable approval of the DCPP Application, as revised consistent with this Settlement, unless otherwise agreed. The parties will meet and confer within 30 days of the filing of any application for rehearing or appeal of the CPUC decision approving this Settlement. 14.a Packet Pg. 234 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 2 6. Following issuance of the Monning Report (per SB 968), the Commission will institute a new proceeding to evaluate the results of the Monning Report, take comment, and consider further action. The Parties reserve all rights in such proceeding to advocate for or to oppose further funding of economic impact mitigation by PG&E and/or its customers. PG&E specifically reserves the right to assert that no additional funding, beyond the mitigation payments provided by the DCPP Application, as modified by this settlement, is required, and the County and the Coalition of Cities or any of the cities specifically reserve the right to seek additional funding beyond the Economic Development Fund. In no event shall the Coalition of Cities or the County be required to refund any amount paid under this Settlement. 7. PG&E, the County, and the Coalition of Cities agree to work together to advocate jointly for additional funding or other assistance from the State of California and Federal government agencies, and their respective legislative bodies, to support the economic transition of the local community to an era without DCPP in operation. This provision is not intended to bind any Party to any financial commitment or specific position with respect to such advocacy. 8. The Economic Development Fund will be included as part of the overall Community Impact Mitigation Program, as described in Chapter 10 of the DCPP Application. 9. The County and the Coalition of Cities agree to support the Employee Program set forth in the Application and to not oppose the remaining provisions of the Application, as may be modified through settlements with other parties. 10. This term sheet is subject to (i) final approval by all parties; (ii) negotiation and execution of a final settlement agreement; (iii) agreement by the Joint Parties to the PG&E Joint Proposal for Diablo Canyon (to the extent the terms and conditions result in modifications to the Joint Proposal); and (iv) approval by the CPUC. 14.a Packet Pg. 235 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E Attachment A to Appendix 2 Distribution of Economic Development Fund County of San Luis Obispo/Coalition of Cities Total Amount County (40%) Coalition Share (60%) Regional Economic Development Arroyo Grande Atascadero Morro Bay Paso Robles Pismo Beach San Luis Obispo $10,000,000 $3,840,000* $5,760,000 $400,000** $747,422 $783,106 $497,472 $1,145,631 $767,028 $1,819,341 *The County will allocate $192,000 of this amount to the City of Grover Beach. ** To be distributed to the County for Regional Economic Development. 14.a Packet Pg. 236 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] 1 Appendix 3 – Emergency Planning and Future Land Use Terms (County/PG&E) Emergency Planning and Preparedness 1. The specific costs and detailed plans for emergency planning and preparedness (emergency management) through the decommissioning period will be definitively proposed in the site- specific decommissioning estimate to be submitted to the CPUC as specified in Chapter 8 of PG&E's prepared testimony supporting Application 16-08-006. The purpose of this agreement is to outline the intent of what will be submitted as part of the site-specific decommissioning estimate and is subject to CPUC approval and funding in nuclear decommissioning rates. 2. The parties recognize that PG&E will continue to fund, at current funding levels, the maintenance of all emergency response-related equipment, including the public warning sirens, as well as the approximately $4 million in funding for offsite state and local emergency planning functions, as required to be adjusted pursuant to state law, through cessation of plant operations in 2025. Infrastructure that is directly maintained by PG&E as of June 21, 2016, will continue to be fully maintained by PG&E. 3. In addition to continued funding per current state law, beyond the expiration of said law, the general intent is that the maintenance of the public warning sirens and funding for offsite community and local emergency planning functions (approximately $2 million forecast in 2017) will continue until all spent fuel is in dry cask storage and the two nuclear reactors are fully decommissioned (following the surrender of the Part 50 licenses). Using the formula established in Section 8610.5 of the California Emergency Services Act, funding for offsite community and local emergency planning functions will be paid directly to the County of San Luis Obispo. 4. The funding for other emergency preparedness equipment, training, emergency planning functions, and PG&E’s emergency response personnel will be informed by the reduced risks that remain and will be more definitively proposed in the site-specific decommissioning estimate. 5. The process for development of the site-specific decommissioning estimate will include formation of a decommissioning advisory panel, which will include representation from the County of San Luis Obispo, industry experts, state and local government representatives, and affected stakeholders. 6. Parties reserve their ability to make arguments in future decommissioning proceedings regarding necessary and appropriate emergency response and preparedness actions and costs associated with DCPP following the surrender of the Part 50 licenses. Future Land Use 1. Issues surrounding the disposition of lands related to DCPP, including future land uses, will be addressed in the DCPP site-specific decommissioning plan to be submitted in PG&E’s next Triennial Nuclear Decommissioning Proceeding, and the Parties agree they are not within scope of this proceeding. 2. As stated in the October 4, 2016, letter that PG&E sent to the County, which is Attachment A to this Appendix 3, PG&E agrees to complete a site-specific decommissioning plan for the facility 14.a Packet Pg. 237 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E 2 before making any decisions on the disposition of the DCPP lands. As part of this process, PG&E will convene a community advisory group that will give stakeholders an opportunity to help shape the future use of PG&E’s land plans prior to finalizing the site-specific plan. In the meantime, PG&E and its affiliate companies that hold a property interest in the DCPP lands will not make any commitments on land disposition or post-retirement land use, including the Wild Cherry Canyon parcels, until the stakeholder process is completed and PG&E’s recommendations have been considered by the Commission as part of the DCPP site-specific decommissioning plan. 14.a Packet Pg. 238 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E Thomas Patrick Jones Director, Strategic Initiatives 735 Tank Farm Road Suite 200 San Luis Obispo, CA 93401 805-595-6340 TPJ2@pge.com October 4, 2016 Dan Buckshi County Administrator Officer County of San Luis Obispo 1055 Monterey Street San Luis Obispo, CA 93408 Dear Mr. Buckshi: Pacific Gas and Electric Company (PG&E) has carefully reviewed the County of San Luis Obispo’s (County) September 15 response to PG&E’s Diablo Canyon Power Plant (DCPP) Application 16-08-006. One of the concerns raised by the County (and other locally-based parties) pertains to the future use of the 12,000 acres of lands surrounding DCPP after the facility is retired. In our September 26 reply to protests and responses, PG&E clarified that we do not yet have a plan for the future use of DCPP lands, that we will commence a public stakeholder process as we evaluate the options, and that we will submit a land use plan to the California Public Utilities Commission (CPUC) in the site-specific decommissioning plan for the facility, which PG&E will file as part of its next Nuclear Decommissioning Triennial Proceeding application in 2019. I am writing to assure you that PG&E intends to complete the site-specific decommissioning plan for the facility over the coming years with community input before making any decisions on the disposition of the DCPP lands. As part of this process, PG&E will convene a community advisory group that will give stakeholders an opportunity to help shape the future use of PG&E’s land plans prior to finalizing the site-specific plan. In the meantime, PG&E will not make any commitments on land disposition or post-retirement land use, including the Wild Cherry Canyon parcels, until the stakeholder process is completed and PG&E’s recommendations have been considered by the CPUC as part of the DCPP site-specific decommissioning plan. PG&E values and appreciates the active partnership of the County and other local stakeholders, and we look forward to continuing to work with you and the rest of the community in both the pending CPUC proceeding and the important decommissioning work to follow. Please feel free to contact me if I can provide any further assurance regarding these land disposition issues. Sincerely, Thomas P. Jones cc: City of Arroyo Grande City of Atascadero City Grover Beach City of Morro Bay City of El Paso de Robles City of Pismo Beach City of San Luis Obispo Friends of Wild Cherry Canyon Service List for CPUC Docket No. A.16-08-006 (via email only) Attachment A to Appendix 3 PG&E October 4, 2016 Letter to the County 14.a Packet Pg. 239 Attachment: a - Settlement Agreement on Community Impact Mitigation_Execution Copy [Revision 2] (1542 : Diablo Canyon Power Plant-PG&E Guiding Principles The City is requesting a formal role with other affected parties in the community, including but not limited to The San Luis Coastal School District, the County of San Luis Obispo, other cities and other governmental agencies in the region in order to: 1) Ensure the continued safe operation of the DCCP, so as to protect the health and safety of the community. The City’s primary focus is to extend funding for emergency preparedness activities, but may also include other public health and safety related activities. 2) Foster creative solutions that will lessen the short and long term economic, fiscal and environmental impacts to the community. This could include a longer runway on tax offsets to ease the transition, direct funding for programs impacted by the loss of tax revenue and other direct financial contributions. Address the issue of fair and equitable cost sharing between ratepayers and PG&E corporate assets and shareholders as warranted. 3) Investigate opportunities for job creation and economic diversification. Examples of this could include creation of a research and development facility located in the region, alternative energy generation technologies, infrastructure development, job training programs and seed funding for relevant economic programs and opportunities. These opportunities could involve direct funding and/or commitments for a certain amount of jobs remaining in the community for a specified amount of time. 4) Develop a plan to address the potential long term impacts of closing a nuclear facility. This includes spent fuel management, decommissioning, hazardous waste disposal and local vendor preference for request for offers (RFO) for new energy sources. 5) Explore options for the future use and protection of land and marine resources, cultural resources, historic sites and related facilities. These options could include desalination, renewable energy generation and general land designation (open space, development, etc.) 14.c Packet Pg. 240 Attachment: c - Guiding Principles (1542 : Diablo Canyon Power Plant-PG&E Settlement Agreement) Meeting Date: 12/13/2016 FROM: J. Christine Dietrick, City Attorney Monica Irons, Human Resources Director SUBJECT: CONSIDERATION OF SETTLEMENT OF PUBLIC EMPLOYMENT RELATIONS BOARD (PERB) CASE RECOMMENDATION Approve negotiated settlement of the pending PERB case between San Luis Obispo Police Officers Association (SLOPOA) and the City and adopt a resolution amending Resolution 6620 to remove the SLOPOA from application of the existing dispute resolution process and add a new section governing the process for resolution of disputes/impasse between the City and the SLOPOA. DISCUSSION Since October 2011 an unfair practices complaint concerning the City’s decision to place the repeal of Binding Arbitration on a 2011 ballot has been pending. In April 2012 a hearing officer ruled against the City and the parties have been awaiting decision by the full Public Employees’ Relations Board (PERB). The hearing officer’s proposed decision was issued in February 2014 and the appeal of the decision was fully briefed and has been pending before the PERB Board ever since. After extensive negotiations the City and the San Luis Obispo Police Officers Association have reached a tentative settlement of this matter and the parties must now take final action to effectuate the tentative settlement. This involves approving the negotiated settlement and amending Resolution 6620 which contains personnel procedures for the administration of employer/employee relations including but not limited to dispute resolution/impasse between the City and the SLOPOA. Details of the negotiated settlement and the associated documents (still being finalized) will be issued under separate cover. 15 Packet Pg. 241 Page intentionally left blank. Meeting Date: 12/13/2016 FROM: Carrie Mattingly, Utilities Director PREPARED BY: David Hix, Deputy Director – Wastewater SUBJECT: WATER RESOURCE RECOVERY FACILITY PROJECT – FUNDING RESOLUTIONS RECOMMENDATION 1. Adopt a resolution (Attachment A) authorizing reimbursement to the State Water Resources Control Board for the financing of the Water Resource Recovery Facility project and authorize the Utilities Director to sign and file the financial assistance application for the Water Resource Recovery Facility project; and 2. Adopt a resolution (Attachment B) pledging sewer fund revenues to State Water Resources Control Board for the financing of the Water Resource Recovery Facility project; and 3. Adopt a resolution (Attachment C) requesting reimbursement of advanced monies related to the construction of the Water Resource Recovery Facility project. DISCUSSION Background The City operates a Water Resource Recovery Facility (WRRF) under a NPDES (National Pollutant Discharge Elimination System) permit issued by the Central Coast Water Board (CCWB). The most recent NPDES permit was adopted by the CCWB in 2014. In order to comply with the 2014 NPDES permit, maximize water production, and address other pressing issues including replacing equipment long past its useful life at the facility, much work is required at the WRRF including process upgrades with strict regulatory deadlines. Work on the WRRF Project commenced in 2014 when the City hired WSC as the WRRF Project program manager. The project’s Facilities Plan was adopted by City Council in July 2015. CH2M was hired as the project design firm in November 2015 and is currently working toward 60% design documents. The project Environmental Impact Report (EIR) was certified by the City Council in August 2016. Funding for the WRRF Project will come from the Clean Water State Revolving Fund loan program. Clean Water State Revolving Fund The State of California established the Clean Water State Revolving Fund in 1989 under the authority of the Federal Clean Water Act to help achieve the goal of clean water. The State Revolving Fund (SRF) is capitalized with state and federal funds. The SRF loan program offers low interest rates and favorable repayment terms, especially when compared with traditional bond financing. 16 Packet Pg. 242 The SRF financing application includes four main components (general, environmental, financial, and technical) called packages. The general and environmental packages have already been submitted to the State Water Resources Control Board who administers the SRF program. The adoption of the three resolutions listed in the Recommendations will allow the City to complete its financing application. The funding amount being requested is $140 million with a funding term of 30 years. This is the maximum projected cost estimate; the final cost is ultimately expected to be less. There are several factors that have led to the this estimated cost to have increased from past reports including the following primary issues; 1) a more sophisticated secondary process that will get the City closer to potable reuse and better meet regulatory requirements, 2) additional flood protection and 3) odor control. Due to complexities surrounding projects of this type, underestimating the amount needed would require an entirely new financing application submission and delay the project. Ultimately, the City is only required to pay back funding actually used. More history and detail will be presented about the project, the latest cost estimate and design progress at the January 3. 2017 Council meeting. Submission of the financing application does not obligate the City to accept a State Revolving Fund loan. It is expected the final agreement for Council’s consideration will be received late summer or early fall 2017. This final agreement is the document that would bind the City to repay the loan. Next Steps Many decisions on the WRRF Project will be coming before City Council in 2017. 1. A comprehensive WRRF Project update and design contract amendment request is scheduled for January 3. 2. The release of a request for proposals for equipment pre-selection will be presented in February. 3. In addition to the SRF funding agreement, other key items to come include a request for proposals for construction management services and final design approval. FISCAL IMPACT There is no fiscal impact associated with the recommended actions. Submission of the financial assistance application does not obligate or commit the City to accept a State Revolving Fund loan, but allows this phase of the time consuming process to begin. Further analysis and discussion of project costs will be provided during the January 3, 2017 WRRF Project update. 16 Packet Pg. 243 ALTERNATIVE Do Not Adopt the Resolutions. The Resolutions are required to submit a complete financing application to the State Revolving Fund program. Should Council choose to not adopt the Resolutions the City would not be able to apply for the SRF program. Alternative funding will be on less favorable terms than the SRF program. Attachments: a - Resolution-SRF Financing Authorization b - Resolution-Fund and Revenue Pledge c - Resolution - Reimbursement From SWRCB 16 Packet Pg. 244 R _____ RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE REIMBURSEMENT TO THE STATE WATER RESOURCES CONTROL BOARD FOR THE FINANCING OF THE WATER RESOURCE RECOVERY FACILITY UPGRADE WHEREAS, the City of San Luis Obispo desires to finance the cost of the construction of the Water Resource Recovery Facility Upgrade (the “Project”); and WHEREAS, the City of San Luis Obispo intends to finance the construction of the Project with moneys (“Project Funds”) provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and. WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the “Obligations”); and WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the City of San Luis Obispo desires to incur certain capital expenditures (the “Expenditures”) with respect to the Project from available moneys of the City of San Luis Obispo; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Director of Utilities or her designee is hereby authorized and directed to sign and file, for and on behalf of the City of San Luis Obispo, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the construction of the Water Resources Recovery Facility (the “Project”). SECTION 2. This Authorized Representative, or her designee, is designated to provide the assurance, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto. SECTION 3. The Authorized Representative or her designee, is designated to represent the City of San Luis Obispo in carrying out the City’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the City of San Luis Obispo and compliance with applicable state and federal laws. 16.a Packet Pg. 245 Attachment: a - Resolution-SRF Financing Authorization [Revision 2] (1528 : WRRF Funding Resolutions) Resolution No. ______ (2016) Page 2 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 Heidi Harmon ATTEST: _________________________________ Carrie Gallagher 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 ______________, _________. _________________________________ Carrie Gallagher City Clerk 16.a Packet Pg. 246 Attachment: a - Resolution-SRF Financing Authorization [Revision 2] (1528 : WRRF Funding Resolutions) R _____ RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, PLEDGING SEWER FUND REVENUES TO THE STATE WATER RESOURCES CONTROL BOARD FOR THE FINANCING OF THE WATER RESOURCE RECOVERY FACILITY UPGRADE WHEREAS, the City of San Luis Obispo’s Water Resource Recovery Facility is in need of upgrades to fulfill its regulatory mandates and capacity requirements for full build-out of the City. WHEREAS, the City Council desires to finance the construction phase of the Water Resource Recovery Facility upgrade through the State Water Resources Control Board. WHEREAS, the City Council directed staff to submit an application to the State Water Resources Control Board for the applicable financing. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City of San Luis Obispo will dedicate and pledge sewer rate revenue from its Sewer Fund to payment of any and all Clean Water State Revolving Fund financing for the Water Resource Recovery Facility Upgrade project (the “Project”). SECTION 2. The City of San Luis Obispo commits to collecting such revenues and maintaining the Sewer Fund throughout the term of such financing and until the City of San Luis Obispo has satisfied its repayment obligation thereunder unless modifications or change is approved in writing by the State Water Resources Control Board. SECTION 3. So long as the financing agreement is outstanding, the City of San Luis Obispo’s pledge hereunder shall constitute a lien in favor of the state Water Resources Control Board on the foregoing fund and revenue without any further action necessary. So long as the financing agreement is outstanding, the City of San Luis Obispo commits to maintain the Sewer Fund and its revenue at levels sufficient to meet its obligations under the financing agreement. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2016. 16.b Packet Pg. 247 Attachment: b - Resolution-Fund and Revenue Pledge [Revision 1] (1528 : WRRF Funding Resolutions) Resolution No. _______ (2016) Page 2 R _______ ____________________________________ Mayor Heidi Harmon ATTEST: _________________________________ Carrie Gallagher 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 ______________, _________. _________________________________ Carrie Gallagher City Clerk 16.b Packet Pg. 248 Attachment: b - Resolution-Fund and Revenue Pledge [Revision 1] (1528 : WRRF Funding Resolutions) R ________ RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, SEEKING REIMBURSEMENT FROM THE STATE WATER RESOURCES CONTROL BOARD FOR CERTAIN ADVANCED MONEYS RELATED TO THE CONSTRUCTION OF THE WATER RESOURCE RECOVERY FACILITY UPGRADE WHEREAS, the City of San Luis Obispo desires to finance the cost of Water Resource Recovery Facility Upgrade (the “Project”), and; WHEREAS, the City of San Luis Obispo intends to finance the construction with moneys ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (“State Water Board”); and WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), and WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the City of San Luis Obispo desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available moneys of the City of San Luis Obispo Sewer Fund; and WHEREAS, the City of San Luis Obispo has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the City of San Luis Obispo Sewer Fund for the expenditures from the proceeds of the Obligations. NOW, THEREFORE, the City Council of the City of San Luis Obispo, California, does resolve, declare, and order as follows: SECTION 1. The City of San Luis Obispo hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds. SECTION 2. The reasonably expected maximum principal amount of the Project Funds is One Hundred Forty Million Dollars ($140,000,000.00). SECTION 3. This resolution is being adopted no later than 60 days after the date on which the City of San Luis Obispo will expend moneys for the construction portion of the Project cost to be reimbursed with Project Fun 16.c Packet Pg. 249 Attachment: c - Resolution - Reimbursement From SWRCB [Revision 2] (1528 : WRRF Funding Resolutions) Resolution No. _____ (2016) Page 2 R _____ SECTION 4. Each project expenditure will be a type properly chargeable to a capital account under general federal income tax principles. SECTION 5. To the best of its knowledge, the City of San Luis Obispo is not aware of the previous adoption of official intents by the City of San Luis Obispo that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued. SECTION 6. This resolution is adopted as official intent of the City of San Luis Obispo in order to comply with Treasury Regulation §1.150-2 and nay other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project Cost. SECTION 7. All the recitals in this Resolution are true and correct and the City of San Luis Obispo so finds, determines, and represents. 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 Heidi Harmon ATTEST: _________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _________________________________ J. Christine Dietrick 16.c Packet Pg. 250 Attachment: c - Resolution - Reimbursement From SWRCB [Revision 2] (1528 : WRRF Funding Resolutions) Resolution No. _____ (2016) Page 3 R _____ 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 ______________, _________. _________________________________ Carrie Gallagher City Clerk 16.c Packet Pg. 251 Attachment: c - Resolution - Reimbursement From SWRCB [Revision 2] (1528 : WRRF Funding Resolutions) Meeting Date: 12/13/2016 FROM: Katie Lichtig, City Manager Prepared By: Xenia Bradford, Interim Finance Director SUBJECT: 2017-19 FINANCIAL PLAN PROCESS, ECONOMIC OUTLOOK AND CONSIDERATION OF PROPOSED CHANGES TO THE CITY’S BUDGET POLICIES RECOMMENDATION 1. Review and approve the 2017-19 Financial Plan Goal Setting Process; and 2. Review and discuss the results of the Economic Outlook for the 2017-19 Financial Plan development; and 3. Review and approve proposed changes and direction regarding the City’s Budget and Fiscal Policies. REPORT-IN-BRIEF The City of San Luis Obispo utilizes a two-year financial planning process to create its budgets. This process includes extensive public outreach to assist the City Council in establishing Major City Goals and Other Important Objectives. The benefits of this process are two-fold, it ensures that resources are provided in the budget to accomplish the community’s highest priorities, most important objectives, and it is a method to help create a mutual understanding among residents, decision makers, and City staff about what can be achieved by working together. The process includes the Community Priorities Survey, the Community Forum, the Council Goal-Setting Workshop, and several other steps to prepare the City Council for selecting goals, and provide City staff with direction on work programs to support those goals. All of these steps lead up to the City Council’s Strategic Budget Direction meeting scheduled for April 18, 2017 and review and adoption of the budget at three meetings in June. For the 2017-19 Financial Plan, a new feature for community input after the Community Forum will be an online option allowing community members to vote on priorities established at the Community Forum. The Economic Outlook presents an overview of the General Fund over the next five years. The outlook focuses on major revenue sources and significant drivers for the operating expenditures to access the fund’s ability to accomplish the five criteria listed above focusing on long-term financial health. The theme of this forecast is Steady Growth Equally Challenged by Expenditure Growth and Uncertainties. While this economic forecast applies only to the General Fund (enterprise funds of Water, Sewer, Parking and Transit conduct their own fund analyses), the assumptions that apply to these other funds will be used throughout the financial planning process to all funds. This report also outlines changes in the City’s Budget and Fiscal Policies that are used to develop 17 Packet Pg. 252 budget proposals (both in the operating budget for each department and the Capital Improvement Plan projects). There are two policy changes and one area for direction proposed in this report. Specifically, staff is requesting to change the following policies: 1. Add a policy to address long-term costs that is consistent with a guiding principle adopted by the council in February 2015. 2. Modify Capital Financing and Debt Management section to add Public Infrastructure Financing Policies that are consistent with needs and priorities created by among other things new housing developments that are working their way through the approval process. In this section of the report staff is seeking council authorization to further study of City reserve requirements and need for a “Economic Fluctuation Reserve.” If authorized, staff will study if it is prudent and fiscally responsible to address known changes to the City’s fiscal situation and increased uncertainties by establishing a reserve specifically dedicated to weather these changes which we know will happen but the elements, timing and severity are more uncertain. DISCUSSION Two-Year Financial Plan Process The following six features describe the City’s Financial Plan process: goal-oriented, policy- driven, multi-year and technically rigorous. For over thirty years, the City has used a two-year financial planning process to create its budgets. The benefits of budgeting based on a two -year plan include: 1. Reinforcing the importance of long-range planning in managing the City's fiscal affairs. 2. Concentrating on developing and budgeting for the accomplishment of significant objectives. 3. Establishing realistic timeframes for achieving objectives. 4. Creating a pro-active budget that provides for stable operations and assures the City's long- term fiscal health. 5. Promoting more orderly spending patterns. 6. Reducing the amount of time and resources allocated to preparing annual budgets. The purpose of the City’s budget is to link, through the public engagement and decision making process, the interests of the community to optimize the allocation of financial resources to achieve the desired results. The fundamental purpose of the City’s 2017 -19 Financial Plan is to link what the City wants to accomplish over a two-year period with the resources required to do so. Central to the effort is providing support for the City’s core functions, including the day-to- day responsibilities carried out by City employees to support residents’ safety, quality of life and ensure regulatory compliance. In addition, the process allows the City Council to engage the community to identify Major City Goals and Other Important Objectives to be accomplished. 2017-19 Goal-Setting Process There are a variety of inputs to the City Council that enable the establishment of Major City 17 Packet Pg. 253 Goals and Other Important Objectives. These inputs are highlighted on the following chart: Many of these efforts have already started. For example, City Advisory Bodies have developed recommended goals, the Community Priorities Survey (Attachment A) has been mailed out and posted on-line, and the City Council has participated in the November 15 “Setting the Stage” study session. Notice has also been sent to over 200 community groups and individuals inviting their input (Attachment B). The two principal elements of the City’s goal setting process still to come are the Community Forum and Council Goal-Setting Workshop. The Community Forum will be held at 6:30 PM on Tuesday, January 10, 2017, at the Ludwick Community Center. Input from the January 10th Community Forum is tabulated and distributed in advance to the City Council for an all-day Council Goal-Setting Workshop held on Saturday, January 28, 2017 at the City/County Library Community Room. For the 2017-19 Financial Plan, the City extends the Community Forum with an online option allowing the community to vote on priorities established at the Community forum. Staff and facilitator Don Maruska plan to build on past successes in integrating Council goal - setting into the budget process following an approach similar to the one used for many years, including integration of proposed uses for the City’s local half-percent sales tax. The specifics are outlined below. 17 Packet Pg. 254 1. Community Forum The January 10 Community Forum is intended to solicit ideas from Council, residents, community groups, other groups of stakeholders and interested individuals on proposed City goals. It also meets the requirements of the City’s half-percent local sales tax, by providing an opportunity for the Revenue Enhancement Oversight Committee (REOC) to “revi ew and discuss the use of the revenue generated by the Local Revenue Measure.” To ensure that adequate space is available for the forum, it will be held at the Ludwick Community Center. The proposed agenda and procedures for the Community Forum are attached (Attachment C). As in past budget cycles, participants in attendance at the end of the evening will be asked to participate in ranking priorities gathered that evening through “dotocracy”, in which each person is given five dots that are intended to be placed on the five highest priority goals. Each participant will be given five dots in another color so they can also provide input on their opinion on how the Local Revenue Measure funding should be allocated. An enhancement for this year is that staff has developed a method for a virtual “dotocracy” such that people can add their perspective via an on-line voting for priorities raised during the Community Forum. It is worth noting that none of these methods are statistically valid methods for gathering community input but they do facilitate community engagement and information flow which the Council can use in your consideration of hope, dreams, wants and needs of our residents and broader community. 2. Council Homework Assignment (Due to Finance by January 17, 2017) The Council’s “homework assignment” for the January 28 workshop is attached (Attachment D). Based on all input received, it is requested that Council members prepare and submit up to seven candidate goals as Major City Goals by 9:00 a.m. on Tuesday, January 17, 2017. Council members are asked to indicate which of these goals should also be Local Revenue Measure priorities, and to prepare and submit suggestions for changes in other programs and services that might help fund their desired goals. Staff will then compile verbatim, composite lists organized by common topics, without identifying who submitted the particular statements for review and consideration before the workshop. This list will be distributed to all Council members and the community at the close of business on Wednesday, January 25, 2017. While staff will retain individual submissions in the working files, it is recommended that Council members refrain from releasing their personal lists so that each Council member can review all of the submissions and discuss them at the Goal-Setting Workshop before taking a position. 3. Council Goal-Setting Workshop At the all-day January 28 workshop, the Council will review the consolidated goals presented by Council members to ensure clarity, completeness and understanding; and then narrow the list to finalist goals that are supported by at least three Council members. The discussion will note which goals address local sales tax priorities. While the Council proceeds with the discussion outlined above, the staff will prepare a final Major City Goals represent the most important, highest priority goals for the City to accomplish over the next two years, and as such, resources should be included in the 2017-19 Financial Plan. 17 Packet Pg. 255 listing that the Council can use in prioritizing goals. In years past, the Council has used a ranking system of 5 through 0 for each candidate goal. Staff recommends continuing to use this ranking system for 2017-19, summarized as follows: 5 Most important, highest priorities for City to achieve over the next two years. 4 Very important goal to achieve. 3 Important goal to achieve. 2 Address if resources are available. 1 Defer to 2019-21 for consideration. 0 Not a priority goal. Depending on the number of candidate goals, total points available to individual Council members have ranged in the past from 50 to 75 based on 3 points per candidate goal. The exact number of points used for ranking is typically figured out on the day of the workshop. Following the ranking exercise, staff will summarize the results. Based on past experience, it is likely that two, priority “tiers” will emerge from this process: 1. Major City Goals. These represent the most important, highest priority goals for the City to accomplish over the next two years, and as such, resources to accomplish them should be included in the 2017-19 Financial Plan. The initial list of Major City Goals following the ranking will include only those goals where a majority of Council Members rank the goal as a 4 or 5. Subsequent discussion will allow the Council to refine the goal list, however, the list should remain consistent with the “Criteria for Major City Goals” (Attachment G). 2. Other Important Objectives. Goals in this category are important for the City to accomplish, and resources should be made available in the 2017-19 Financial Plan if at all possible. The outline for the goal setting workshop is provided in Attachment E; and suggested guidelines for Council members during the goal-setting process are provided in Attachment F. Included as Attachment G are the suggested “Criteria for Major City Goals”- these have proven helpful and useful historically. These criteria capture the relevant considerations to determine a Major City Goal, but the Council could refine the criteria at this time if desired. No follow-up meeting has been needed in the last several goal -setting sessions as the Council concluded all necessary actions at the Saturday Goal-Setting Workshop. Continued consideration of goals for 2017-19 will be scheduled for the next regular Council meeting following the workshop only if needed. For the 2017-19 Financial Plan, staff recommends utilization of new naming convention to focus priority areas into the following six functions: 1) Community Safety, 2) Culture & Recreation, 3) Infrastructure & Transportation, 4) Community & Neighborhood Livability, 5) Environmental Health & Open Space, 6) Fiscal Health & Governance. Attachment H provides a detail summary of function, organization and program categories proposed for the 2017-19 Financial Plan development and budget documents. The City budgets and measures service level performance at a program level and aligns allocation of funds based on the Goal-Setting Process and 17 Packet Pg. 256 Local Revenue Measure Expenditure Categories  Open Space Preservation  Bicycle and Pedestrian Improvements  Traffic Congestion Relief/Safety Improvements  Public Safety  Neighborhood Street Paving  Code Enforcement  Flood Protection  Parks and Recreation/Senior Programs and Facilities establishment of highest priorities to be accomplished within the two-year Financial Plan. Local Revenue Measure Annual Citizen Meeting It is important to know that Local Revenue Measure is a general purpose measure, and the proceeds are not restricted to specific purposes. The language on the ballot measure approved by voters in 2016 provides the types of uses that would be funded. The language on the ballot was: “To protect and maintain essential services and facilities – such as open space preservation; bike lanes and sidewalks; public safety; neighborhood street paving and code enforcement; flood protection; senior programs; and other vital services and capital improvement projects – shall the City’s Municipal Code be amended to extend the current one-half percent local sales tax for eight years, with independent annual audits, public goal-setting and budgeting, and a Citizens’ Oversight Commission?” In short, while the ballot language provided examples of the types of uses that could be funded - based on community input received before placing the measure on the ballot – the Local Revenue Measure is a general purpose tax providing Council with flexibility to respond to new circumstances and challenges. The Revenue Enhancement Oversight Commission (REOC) has established categories to track expenditures and report via the required annual report. These categories are listed below. The language in the Measure and the implementing ordinance indicates that there should be “public goal-setting and budgeting.” This is planned to be integrated and aligned with the Financial Planning process. Two specific aspects are outlined below: 1. Integration into the City's budget and goal-setting process. The estimated revenue and proposed use of funds generated by the Local Revenue Measure shall be an integral part of the City's budget and goal-setting process, and significant opportunities will be provided for meaningful participation by citizens in determining priority uses of these funds. During the Community Forum participants will be given dots that they can use to indicate how this resource should be spent. The same will be done on the on-line voting. 2. Annual citizen meeting. The Revenue Oversight Committee will hold an annual citizen 17 Packet Pg. 257 meeting concurrent with the Community Forum on January 10, 2017. City staff will also be available to meet with any group that requests a specific briefing with their members to discuss and answer questions about the revenues generated by the measure and their uses. For 2015-16, total expenditures were $4,881,086 and an additional $3,618,008 in funding was carried over for several projects (many of which are now under construction). The Revenue Oversight Committee held a meeting on November 16, 2016 and reviewed the preliminary 2015- 16 year-end report in detail. These are still the unaudited results. The final information will be included in the Certified Annual Financial Report, which will be published before the end of the calendar year. ECONOMIC OUTLOOK The purpose of Economic Outlook is to forecast the General Fund’s ability over the next five years to accomplish five things: 1. Deliver current service levels; 2. Maintain existing infrastructure and facilities; 3. Preserve the City’s long-term fiscal health by aligning operating revenues and expenditures; 4. Maintain fund balance at policy levels; and 5. Reinvest in the General Fund supported Capital Improvement Program, particularly in areas that are underfunded such as infrastructure maintenance, fleet replacement, IT replacement, and facilities maintenance. The Economic Outlook presents an overview of the General Fund over the next five years. The outlook focuses on major revenue sources and significant drivers for the operating expenditures to access the fund’s ability to accomplish the five criteria listed above focusing on long-term financial health. The theme of this forecast is Steady Growth Equally Challenged by Expenditure Growth and Uncertainties. On February 21, 2017 a General Fund Five-Year Forecast will be presented to Council based on audited 2015-16 year-end results and six months of revenue and expenditure data since the adoption of the 2016-17 Supplemental Budget, when the Council was last presented with a Five- Year Forecast. The City of San Luis Obispo contracts with Beacon Economics to provide with Economic Forecast for the City of San Luis Obispo. Beacon Economics forecast is based on time-series econometric techniques based on historical correlations and forecasts of future economic trends. Beacon Economics utilizes a layered approach based on the National, State of California and regional forecast. In summary, the United States economy continues to expand at an unexceptional rate and the Gross National Product growth rate is currently forecasted at 1.5% to 2%. The California economy for the fourth year in a row, outpaced the nation in job growth as well as output. 17 Packet Pg. 258 Revenues The Economic Outlook focuses on a review of major sources of revenue for the City: Sales Tax represents approximately 36% of the General Fund Revenue, followed by Property Tax at 14%, Transient Occupancy Tax at 10%, Utility Users Tax at 8%, and Development Review Fees at 7%. Highlights of these major revenues are as follows: Sales Tax. The City contracts with HdL Companies to monitor sales tax receipts and trends. The results of the 2nd quarter showed a significant decrease in sales tax receipts on gasoline due to gasoline low prices. Statewide sales tax rates expectations for 2016-17 have been lowered to 2.3% by HdL forecast and this expectation is conservatively carried through the five year forecast. The City of San Luis Obispo continue to benefit from its diverse and dynamic demographic and employment related structures. The sales tax growth is projected at just above 2.7% by HdL throughout the 2017-19 Financial Plan and at 2.5% to 2.6% thereafter. The City sales tax forecast for 2017-18 is projected at 3% based on current economic development in downtown San Luis Obispo. This projection will be closely monitored and updated with the Five-Year General Fund Forecast. Property Tax. Property Tax estimated revenue continues to show positive growth. 2015-16 actual property tax revenue growth was 5% over the previous year. Beacon Economics forecast based on assessed valuation trend over time and building permits, shows an expected growth rate above 6% through fiscal year 2017-18 and above 5% in the outer years. In addition, three1 significant projects are underway in San Luis Obispo incorporated area that are expected to significantly contribute to the property tax revenue growth for the City. The Economic outlook is based on a 6% growth projection through the 2017-19 Financial Plan, 5.5% percent growth in 2019-20 and 5% growth thereafter due to higher degree of uncertainty in the outer years. Transient Occupancy Tax. Transient Occupancy Tax is another revenue sources that is highly correlated with economic fluctuations that affect tourism. After seeing a slowing growth trend through the later part of fiscal year 2015-16, the City is continuing to experience that softening in the tourism marketing into the first quarter of 2016-17. Traditionally the first quarter of the fiscal year tends to be the strongest indicator for the strength of the tourism market as it represe nts the peak travel season. Based on this softening trend, the City is forecasting the adjustment in the TOT growth from 5% over the previous fiscal year to 4% and will continue to monitor the trend. Overall the softening in the marketing can be attributed to a number of factors including: addition of new lodging properties in competing destinations countywide as well as the business development of recently opened properties. In addition, various properties throughout the city have undergone renovations within the last year reducing the number of rooms available to be sold to visitors. Staff will continue to monitor the trends and analyze the impacts of the three significant hotel developments mentioned in the property tax discussion. Utility Users Tax. The City’s Utility User’ tax forecast is maintained at the level presented to the Council with the 2016-17 Supplemental Budget. There is no significant variance to this forecast at this time. The City contracts and works closely with MuniServices LLC, who provide expert advice and monitor the City’s collections of Utility User’s tax. MuniServices also monitors and actively engages in management of the revenue stream given the impacts of new technologies on 1 The projects are Monterey Hotel, Garden Street Terraces and China Town. 17 Packet Pg. 259 Utility User’s Tax. With internet and wireless communications becoming more prevalent, there is a transition from traditional means of utilities. Development Services Fees. Development Services Fees are a highly fluctuating revenue stream, and the City aims for 100% cost recovery in providing services to meet the demand for planning entitlements and building permits. To help meet the demand, the Council adopted with the 2014- 15 Supplemental Budget a policy granting authority to the City Manager to allocate 75% of over- realized Development Services revenue for temporary staffing and consultant services needed to process development services applications and related permit processing activities within expected timeframes. Expenditures On the expenditure side, the forecast is based on a modest economic growth, o perating expenditure growth of 2.5% overall, excluding retirement contributions to California Public Employees Retirement System (CalPERS). The Capital Improvement Program expenditure forecast is based on the 2015-17 Financial Plan adopted capital improvement budget and city fiscal policies. CalPERS’ required contribution rates and strategy to pay down unfunded liability continues to be a priority. As expected, the new funding formula approved by the governing board of the CalPERS has increased the annual contributions required to fund the program. This funding formula took full effect in 2015-16 and is designed to fully amortize the remaining unfunded retirement liabilities over 30 years. The City has made significant progress in its efforts to contain retirement costs, such as adding 2nd and 3rd Tier reduced benefit programs that now reflect membership by 20% of the total employees and increasing employee contributions toward the cost of retirement. However, the fiscal forecast still reflects a significant increase in the annual cost of retirement benefits as a result of these funding formula changes aimed at reducing the unfunded liabilities. In February of 2015, the Council adopted a guiding principle to prioritize allocation of one -time funds available to pay down 1) Unfunded Pension Liability, 2) Other Post-Employment Benefits, 3) Roads Infrastructure, and 4) Equipment Replacement Fund in that order. Since 2014, the Council appropriated $2.7 million in prepayments toward unfunded liability. The prepayments are applied to decrease the unfunded liability associated with a fixed portion of the unfunded liability associated with retirement benefits for the City’s sworn Fire Department personnel. This has made the most sense given this is a separately calculated unfunded liability. Outlook Summary The overall plan performance depends on actuarial assumptions and an expected long -term rate of return of 7.5%. For context the actual rate of return in 2014-15 was 2.4%. The CalPERS 2014- 15 Annual Valuation Report presents an analysis of alternative amortization schedules for municipalities that may elect to pay down unfunded liabilities in shorter period of time. For example, Annual Valuation Report for Safety Tier 1 plan shows that the 20-year amortization schedule assumes slight increases in payments over the next three years and significant ramp -up at the end of the 20-year amortization period. The 15-year amortization schedule assumes steady 17 Packet Pg. 260 increase in payments over the 15-year period in the amount of approximately $1 million per year. According to this analysis amortizing over 20 years, is expected to result in $4.5 million in savings and amortizing over 15 years is expected to result in $24 million in savings for the plan. Staff will be assessing if any of these options will be prudent to pursue (this issue applies to all funds because all full-time employees are covered by CalPERS retirement system) and will make a recommendation during the Financial Plan development process. The graph above depicts General Fund revenues over expenditures over time. Assuming 2.5% growth in expenditures to maintain current levels of service and the rates of increase in major revenue categories, the chart above shows a balanced budget over the next five years but with little to no additional capacity for growth in ongoing expenditures. While this may seem constraining, staff will be looking forward to understanding the Council’s Major City Goals and Other Important Objective before looking at creative ways to propose trade-offs, reprioritized programs or other methods to achieve the Council’s desired outcomes. The Financial Planning process has proven time and again that “We can do anything; we just can’t do everything!” These will continue to be watch words in the future. Note that the 2016-17 budget shows, expenditures exceeding revenue. This is due to allocation of one-time available fund balance toward one-time expenditures. The decline in revenue from 2015-16 is due to the end of Triple-Flip, which resulted in one-time increase in cash disbursement from the State. In addition, the 2015-16 actuals reflect mutual aid revenue, which is reimbursement revenue the City receives for providing fire protection mutual aid. 17 Packet Pg. 261 One significant economic uncertainty that arose in the last six months is the announced closure of the Diablo Canyon Power Plant. The recent announcement of settlement agreement with PG&E, the Coalition of Cities (six of the seven cities in the County including San Luis Obispo), County and San Luis Coastal Unified School District provides the possibility to soften the financial impacts of the proposed Diablo closure. The settlement agreement provides that $400,000 will be made available to develop a regional economic strategy once the California Public Utilities Commission concludes this phase of its proceedings (currently projected to be late summer or early fall 2017). This strategy will be led by the County and will help quantify the ongoing financial impacts to the City. The economic stimulus of implementing this plan will take time to realize. Additionally, the City may be developing San Luis Obispo -specific strategies and action plans that will be developed and implemented consistent with a timetable established by the City Council. As a result, there is currently significant uncertainty if negative economic and financial impacts to the region and the City can be avoided. But that is certainly going to be analyzed in greater detail both in the regional efforts and possibly through the updating of the City’s Economic Development Strategic Plan. In addition to the planning funds, the city will benefit from two other aspects of the proposed settlement. First, the city will maintain the share of Unitary Tax (a form of property tax) that is received based on the taxes currently paid by PG&E related to the property value of Diablo Canyon Power Plant. This will be the case for the next nine years and then this funding will cease. The negative fiscal impact equals a loss of revenue of approximately $140,000. The revenue allocated to the City varies from year to year. The third aspect of the settlement that will come to the City is a share of the Economic Development Fund. If the settlement and PG&E’s application to retire Diablo Canyon receives final approvals from the CPUC, the City’s share of the Economic Development Fund will be $1.82 million. It is anticipated that the process could concluded in 2018. It is prudent and consistent with Budget and Fiscal policies to consider any financial resources realized by the settlement agreement (including the taxes) as one-time resources because they are not continuing. This indicates that the Financial Plan may program these resources for one-time purposes in the timeframe they will be received. While not a lot of specific details are known now, more will likely be presented about this topic when the Five-Year Fiscal Forecast is presented in February, 2017. Staff is working on analysis of potential impacts of PG&E’s Diablo Canyon Power Plant closure and will return to Council with further analysis when more information. Lastly it might create some uneasiness that so little facts are known as of now. While it would be best if staff had more information to share it seemed appropriate to provide this information as soon as it was available to enhance awareness of these potential fiscal and economic impacts. 2017-19 FINANCIAL PLAN POLICIES As noted in the discussion above, Council goal-setting is an important “first step” in the City’s Financial Plan process. The second major feature in the City’s Financial Plan Process is reliance upon clear polices. In looking at cities across the nation that have reputations for being financially well-managed, and have maintained their fiscal health through good times and bad, one finds that they have in common clearly articulated fiscal policies used in financial decision- 17 Packet Pg. 262 making. This best practice, as implemented by the City of San Luis Obispo, has been acknowledged repeatedly by the bond rating agencies as an important factor in sustaining the City’s excellent credit rating. Formal statements of key budget and fiscal policies provide the foundation for assuring long- term fiscal health by establishing a clear framework for effective and prudent financial decision - making. The City’s Budget and Fiscal Policies are traditionally adopted by the Council when the Financial Plan is approved and are set forth in the Reference section of the Financial Plan. The policies cover a broad range of fiscal issues, including:  Financial Plan organization  General Revenue Management  User Fee Cost Recovery Goals  Enterprise Fund Fees and Rates  Revenue Distribution  Investments  Appropriations Limitation  Fund Balances and Reserves  Capital Improvement Management  Capital Financing and Debt Management  Human Resource Management  Productivity  Contracting for Services At the outset of each financial planning cycle, the City reviews the policies in place to see if any updating is necessary. At this point, a few policy changes are proposed. Changes are generally intended to create consistency amongst City fiscal policies and create a system that is efficient and effective to administer. As staff begins preparing the 2017-19 Financial Plan, other additions or revisions to the City’s budget and fiscal policies may arise; if so, these will be presented for Council consideration at that time. Proposed Policy Changes Attachment I shows updated budget and fiscal policies. All changes to the policies are underlined for identification. The following major policy changes are proposed: 1. Add a policy to address long term costs. In February of 2015, the Council adopted a guiding principle to prioritize allocation of one -time funds available to pay down 1) Unfunded Pension Liability, 2) Other Post-Employment Benefits, 3) Roads Infrastructure, and 4) Equipment Replacement Fund in that order. The proposed policy is to establish that the City will give priority to applying one-time funds available for allocation to pay down long-term unfunded liabilities and to invest in infrastructure and equipment. In addition to being a prudent approach to maintaining the City’s fiscal health this policy is consistent with the Council-adopted Fiscal Responsibility Philosophy. 17 Packet Pg. 263 2. Modify Capital Financing and Debt Management section to add Publ ic Infrastructure Financing Policies. These policies offer a strategic framework for funding investments in the City’s public facilities and infrastructure. In addition to such general guidelines it is common for jurisdictions to also adopt financing policies for specific debt and land-secured financing mechanisms (e.g., Mello Roos Community Facilities Bonds). Financing guidelines and policies provide a systematic way of selecting, implementing, and assembling the funding (and/or financing the money) needed to construct needed public facilities and infrastructure in a manner that is effective, efficient and equitable. Such guidelines could be adopted by resolution, and updated regularly, as may be appropriate. The categories and types of public facilities and infrastructure improvements contemplated in these policies include water and sewer utilities, transportation infrastructure, streetscape improvements, parks and recreation facilities, and other public safety and civic facilities. Collectively, these public facilities and improvements induce private investment, facilitate real estate development including but not limited to new housing, increase economic activity, and expand the City’s tax base when coupled with sufficient market demand and wise land use policies. 3. Further study of City reserve requirements and need for a “Economic Fluctuation Reserve” Staff recommends further study of the City’s reserve requirements and review of fiscal policies to assess the need and feasibility of establishing an economic fluctuation reserve requirement. This type of requirement could smooth or mitigate impacts on ongoing operations and the level of services to the community should significant economic fluctuations occur. The recommendation is to direct staff to return with an analysis and a recommendation regarding a General Fund reserve requirement above current 20% of operating expenditures contingency as well as to consider a policy to set aside one-time funds to smooth funding operations to maintain expected service levels by the community due to major economic fluctuations. As described above there are some economic fluctuations that are on the horizon and uncertainties are anticipated. The analysis will consider best practices, trade-offs and other factors that could help the council decide if this is a prudent policy to adopt. CONCURRENCES The City’s internal Budget Review Team and the Department Head Team concur with the recommendations included in this report. FISCAL IMPACT There is no fiscal impact associated with the conduct of the City’s two-year financial planning process. The City budgets for all of these planned activities. Preparing budgets are one of the 17 Packet Pg. 264 core government functions that the City is responsible for carrying out. ALTERNATIVES 1. Modify the proposed Goal Setting activities. The Council could direct staff to pursue a different process for goal-setting this year. Staff does not recommend this alternative because there is value in conducting a similar process that residents are familiar with. If the Council is interested in making changes, staff recommends that they be incremental adjustments to the activities planned. If major changes are desired, they should be discussed and planned during the first year of the next financial plan. 2. Do not approve proposed budget policy changes. The City Council could decide not to approve one or more of the proposed budget policy changes. In this case, direction should be given to staff regarding the related issues and any other changes desired t o the budget policies. Attachments: a - Community Survey b - Community Group Notice 2017-19 Flyer c - Outline for Community Forum d - Sample Form for Council Goals e - Outline for Council Goal-Setting Workshop f - Guidelines for Council Members During Goal-Setting Process g - Criteria for Major City Goals h - SLO City Budget Organization i - Budget and Fiscal Policies_2017-19 j - Economic Outlook 2017-22 17 Packet Pg. 265 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. 2015-17 Major City Goals  Open Space Preservation  Multimodal Transportation  Housing Other Important Objectives  Neighborhood Wellness  Laguna Lake Restoration  Fiscal Sustainability  Downtown The City Council wants to hear from you about what is truly important for the community. COMMUNITY PRIORITIES SURVEY What are the most important issues facing the City of San Luis Obispo? The City wants your input! Every two years, the City establishes the top priorities to make San Luis Obispo an even better place to live, work and play. The City Council then matches the resources necessary to achieve these priorities through adopting the budget in June. The adopted budget sets the City’s course of action for the next two years and helps the City to continue to provide the exceptional services and programs the community cherishes. As the upcoming 2017-19 financial plan process unfolds, economic growth remains steady. Revenues are expected to grow at a modest rate. Development review activity remains at a high level. The City has also made progress in our work to contain operating costs which in turn helps improve our overall fiscal health. Despite these positive signs, there are significant uncertainties and challenges. This is particularly true in relation to the on-going cost of retirement and insurance programs, and the need to fund the deferred maintenance of infrastructure. All of these factors are likely to lead to complex and competing budget decisions. Regardless of the specific fiscal circumstances, it is critical that we have an effective process for setting the most important, highest priority things for the City to do in the next two years. That’s where you can help! Share Your Thoughts on the City’s Priorities! The City Council needs to know your thoughts on what the community’s priorities should be so that available resources can be best allocated to achieve them. Now it’s time for you to share your ideas for 2017-19 priorities. The City needs the help of the community in two important ways:  Complete the survey by visiting www.slocity.org/opencityhall or fill out the survey included in this mailing and mail it back or drop it by any City office.  Attend the Community Forum on Tuesday, January 10, 2017 from 6:30 p.m. to 9:30 p.m. at the Ludwick Community Center, 864 Santa Rosa Street. This forum is an opportunity to present your ideas to the Council and discuss them with other community members. If you have any questions about the City’s goal-setting and budget process, please contact Xenia Bradford, Finance Director, at 781-7521 or Citygoals@slocity.org. City staff will compile the community feedback for the Council to review in advance of its goal-setting workshop on Saturday, January 28, 2017 at 8:30 a.m. During this public workshop, the Council will deliberate to set the Major City Goals and Other Important Objectives for the next two years. This survey is your opportunity to tell the City:  What issues are important to the community?  What priorities should the City focus on during the next two years?  How might the City adjust other service needs to accomplish these priorities? 17.a Packet Pg. 266 Attachment: a - Community Survey [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation)                For mailing – FOLD THIS END FIRST             BUSINESS REPLY MAIL FIRST-CLASS MAIL PERMIT NO. 369 SAN LUIS OBISPO, CA   POSTAGE WILL BE PAID BY ADDRESSEE NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES     CITY ADMINISTRATIVE OFFICER CITY OF SAN LUIS OBISPO 990 PALM ST SAN LUIS OBISPO CA 93401-9938             --------------------------------------------------------------------------------------------------------------------------------------   Tape Here 17.a Packet Pg. 267 Attachment: a - Community Survey [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation)     Community Priorities for 2017-19   What should be the City’s most important, highest priority goals during 2017-19?                    For mailing – FOLD THIS END FIRST How might the City adjust other programs & services to accomplish these priorities?                        Email address (optional): Providing your email will enable you to view your statement online and see statements from others. Your email address will not be included with your statement and the City will not share it. 17.a Packet Pg. 268 Attachment: a - Community Survey [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Attachment 2 Feedback from both the survey and Community Forum will be compiled for the City Council to review in advance of its goal-setting workshop on Saturday, January 28, 2017 at 8:30 a.m. During this public workshop, the Council will deliberate to set the Major City Goals and Other Important Objectives for the next two years. Comments can be submitted online at the City’s Open Government portal: www.slocity.org/opencityhall. If you are submitting comments on behalf of a community group, business or organization, please include Your organization ’s name within your response. To submit comments by mail, please them to Courtney Steck, Budget Manager, at 990 Palm Street, San Luis Obispo, CA, 93401; by fax at 781-7401; or by email at Citygoals@slocity.org. For more information on the goal-setting and budget process, contact Finance Department at 781-7521. For additional information on the City’s Financial Plan and Goal-Setting process, visit www.slocity.org. What are the most important priorities facing the City of San Luis Obispo? The City Council wants to hear from you about what is truly important for the community. 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. 2017-19 Financial Plan Contact Information Key Dates Written Suggestions Comments can be submitted online at: www.slocity.org/opencityhall Or via mail to: Courtney Steck, Budget Manager 990 Palm Street San Luis Obispo, CA 93401 Fax: 781-7401 Email: Citygoals@slocity.org 2017-19 Financial Plan Meetings Budget Foundation Meeting Tuesday, December 13, 2016, 6:00 p.m. Community Forum Tuesday, January 10, 2017 6:30 p.m. to 9:30 p.m. Ludwick Community Center Goal-Setting Workshop Saturday, January 28, 2017 8:30 a.m. to 4:30 p.m. City-County Library Mid-Year Budget Review Tuesday, February 21, 2017, 6:00 p.m. Strategic Budget Direction & Major City Goal Programs Workshop Tuesday, April 18, 2017, 6:00 p.m. Budget Workshops June 1 & 6, 2017, 5:00 p.m. June 20, 2017, 6:00 p.m. 2017-19 Budget Adoption Tuesday, June 20, 2017, 6:00 p.m. Of all the things that can be done to make the City an even better place to live, work and play, which are the most important? 17.b Packet Pg. 269 Attachment: b - Community Group Notice 2017-19 Flyer [Revision 3] (1537 : 2017-19 Financial Plan Attachment 2 The City Wants Your Input Every two years, the City establishes the top priorities to make San Luis Obispo an even better place to live, work and play. Then the City Council matches the resources to achieve these priorities through adopting the budget in June. This sets the City’s course of action for the next two years and helps the City to continue to provide the exceptional services and programs the community cherishes. As the upcoming 2017-19 financial plan process unfolds, economic growth remains steady. Revenues are expected to grow at a modest rate. Development review activity remains at a high level. The City has also made progress in our work to contain operating co sts which in turn helps improve our overall fiscal health. Despite these positive signs, there are significant uncertainties and challenges. This is particularly true in relation to the on-going cost of retirement and insurance programs, and the need to fund the deferred maintenance of infrastructure. All of these factors are likely to lead to complex and competing budget decisions. Regardless of the specific fiscal circumstances, it is critical that we have an effective process for setting the most important, highest priority things for the City to do in the next two years. That’s where you can help! Share Your Thoughts on the City’s Priorities! You have the opportunity to tell the City:  What issues are important to the community?  What priorities should the City focus on during the next two years?  How might the City adjust other service needs to accomplish these priorities? Major City Goals The City Council needs to know your thoughts on what the community’s priorities should be so that available resources can be best allocated to achieve them. Now it’s time for you to share your ideas for 2017-19 priorities. Major City Goals are identified as the most important, highest priority goals for the City to accomplish over the next two years.  Open Space Preservation  Housing  Multi-Modal Transportation Other Important Objectives: • Neighborhood Wellness • Laguna Lake Restoration • Downtown • Fiscal Sustainability and Responsibility Your Important Role in this Process The City needs the help of the community in two important ways: Complete the Community Priorities Survey. Community members can help by completing a survey online at www.slocity.org/opencityhall, or by filling out the printed survey sent to utility customers in mid-November. Printed surveys should be dropped off or mailed to City Hall, 990 Palm Street, 93401. All surveys received before December 15, 2016 will be summarized and presented to the City Council at the Community Forum. Attend the Community Forum on January 10, 2017 from 6:30 p.m. to 9:30 p.m. at the Ludwick Community Center, 864 Santa Rosa Street. This forum is an opportunity to present your ideas to the Council and discuss them with other community members. City staff will compile the community feedback for the Council to review in advance of its goal- setting workshop on Saturday, January 28, 2017. During this public workshop, the Council will deliberate to set the Major City Goals and Other Important Council Objectives for the next two years. Current Major City Goals What Are the Most Important Needs of the City Over the Next Two Years? 17.b Packet Pg. 270 Attachment: b - Community Group Notice 2017-19 Flyer [Revision 3] (1537 : 2017-19 Financial Plan ATTACHMENT 3 Community Forum 6:30 PM to 9:30 PM, Tuesday, January 10, 2017 Ludwick Community Center 6:30 Welcome Mayor 6:35 Process, Current Goals, Local Sales Tax Priorities and Fiscal Outlook City Manager/ Finance Director 6:40 Public Comment 1. Members of public who desire to speak complete public comment cards and indicate topic. Where a group has several members present, we encourage them to select a spokesperson and have others in their group indicate support for the same position with a show of hands. 2. We invite each speaker to address: a. What do you recommend as a Major City Goal? b. Why is it important to you and the City? c. How do you suggest that it might be accomplished? 3. Facilitator calls upon a speaker and identifies general topic. 4. Department Head in the budget category for the topic steps up to write the idea on a flip chart sheet and clarifies any linkages with existing programs or plans. 5. Staff posts the public comment in the relevant budget category. 6. All participants provided with half-page “post-its” to note any suggestions or concerns about the ideas. 9:00 Closing remarks Mayor 9:15 Participants Vote on Top Priorities with Dots (no more than 1 green and yellow dot per item) 9:30 Adjourn Preparation  Prepare handouts on budget process; current goals & objectives and local revenue measure priorities; and Community Priorities Survey results.  Set up the room with posting area for each of the budget categories.  Provide participants with half-page post-its.  After receiving public comments, provide the following adhesive dots per attendee: 5 yellow for top Local Sales Tax priorities and 5 green for overall goal priorities. 17.c Packet Pg. 271 Attachment: c - Outline for Community Forum [Revision 4] (1537 : 2017-19 Financial Plan Budget Foundation) Community Forum Procedures Facilitator’s Role As noted in the agenda details, the facilitator will help organize comments by general topic and encourage groups to select a spokesperson and have others in the group indicate support for the same position with a show of hands. Documenting Testimony Each speaker will be invited to address the “what, why, and how” of his/her suggested goal. The Department Head responsible for the related budget function (i.e., Community Safety, Culture & Recreation, Infrastructure & Transportation, Community & Neighborhood Livability, Environmental Health & Open Space, Fiscal Health & Governance) will write the idea on a flip chart sheet and clarify any linkages with existing programs or plans. Staff will post the flip chart sheets with the public comments in the relevant budget functional areas on the walls. Additional Comments Participants will also receive half-page “post-it” notes for audience members to offer written comments such as resource suggestions or concerns to be posted next to goals. Voting with Dots To involve participants further and garner direct citizen feedback on all suggestions offered, “voting with dots” will be used again. At the end of the comment period, each attendee will receive adhesive dots to apply to the posted items: six green for overall goal priorities and six orange dots for top local sales tax priorities will be provided to each participant. When using the dots, the same goal could receive both a green and orange dot. That decision is within the control of community member participating in the process. Participants will be advised to avoid assigning more than one green and one orange dot to any one goal. However, because this is an informal way to gather input for the Council to be considered for the coming two year-cycle there will be no monitors or ways to prohibit participants from applying as many dots to any item as they wish. City staff will summarize the results of the forum and distribute them to the Council on January 13, 2017, to assist the Council in completing its “homework” and in preparation for the Goal-Setting Workshop. Videotaping It is also planned for the Community Forum to be videotaped so there will be a historical record other than the flip charts and individual recollections. This will be done in a way that will be low key (one camera, no lights) so the quality may not replicate a regular council meeting. Should the Council object to this effort, concern should be expressed at the December 13th Council meeting. 17.c Packet Pg. 272 Attachment: c - Outline for Community Forum [Revision 4] (1537 : 2017-19 Financial Plan Budget Foundation) ATTACHMENT 4 Council Member Candidate Major City Goals Please prepare up to 7 candidates for Major City Goals below and submit them to Finance by 9:00 a.m., Tuesday, January 17, 2017. Since the Council will identify connections between the use of Local Revenue Measure revenues and Major City Goals, please note which suggestions address Local Revenue Measure priorities. Finance will then compile a verbatim, composite list by topic without identifying who submitted the particular statements. Please refrain from releasing your personal list so that each Council member has flexibility to review all of the submissions and discuss them at the Council Goal-Setting Workshop before staking a position.  Local Revenue Measure? Yes/No  Local Revenue Measure? Yes/No  Local Revenue Measure? Yes/No  Local Revenue Measure? Yes/No  Local Revenue Measure? Yes/No  Local Revenue Measure? Yes/No  Local Revenue Measure? Yes/No 17.d Packet Pg. 273 Attachment: d - Sample Form for Council Goals [Revision 4] (1537 : 2017-19 Financial Plan Budget Foundation) ATTACHMENT 4 Suggestions for Changes in Other Programs and Services Please provide ideas about possible changes in other programs and services to fund desired goals. Please submit them to Finance by 9:00 a.m., Tuesday, January 17, 2017. Finance will then compile a verbatim, composite list by topic without identifying who submitted the particular statements. Please refrain from releasing your personal list so that each Council member has flexibility to review all of the submissions and discuss them at the Council Goal - Setting Workshop before taking a position.      17.d Packet Pg. 274 Attachment: d - Sample Form for Council Goals [Revision 4] (1537 : 2017-19 Financial Plan Budget Foundation) ATTACHMENT 5 Council Goal-Setting Workshop 8:30 AM to 4:30 PM Saturday, January 28, 2017 City-County Library Community Room 8:30 - 9:00 a.m. Refreshments 9:00 - 9:05 a.m. Welcome and Introductions Mayor 9:05 - 9:10 a.m. Purpose, Process & Guidelines Facilitator 9:10 – Noon Review Goals by Category Council Discuss Relationship of Goals to Current Activities Formulate and Select Candidate Goals Noon – 12:15 p.m. [Council may accept further comments from the public that have not been previously presented] 12:15 – 1:15 Lunch Break [staff compiles candidate goals] 1:15 - 2:15 p.m. Discuss and Clarify the Goals Council Each Member Prepares a Written Ballot Ranking the Goals 2:15 - 3:15 p.m. Break while staff tabulates the results Staff 3:15 - 4:00 p.m. Review and Identify Major City Goals Council 4:00 - 4:30 p.m. Discuss Next Steps Council/Staff Preparation  Staff compiles and distributes composite list of candidate goals to Council members.  Staff prepares a template for Council ballot sheet.  Assign staff to enter goal statements into spreadsheet as Council formulates them. 17.e Packet Pg. 275 Attachment: e - Outline for Council Goal-Setting Workshop (1537 : 2017-19 Financial Plan Budget Foundation) ATTACHMENT 6 Suggested Guidelines for Council Members During the Goal-Setting Process 1. Encourage advisory boards, community groups and citizens to submit written comments about desired goals. 2. Invite citizens to participate in Community Forum and to listen and learn from their neighbors. 3. Receive comments from community and acknowledge their input without prematurely expressing your point of view. 4. Assure the community that you are willing to listen openly to all perspectives. 5. Focus your submission of suggested goals on a short list of key priorities to target City resources (not to exceed seven candidate goals for consideration). 6. Avoid publicizing your submission of suggested goals. Let staff compile your submissions verbatim into a composite list of goals by category without identification of who made each suggestion. This enables you to see the whole picture. 7. Give yourself flexibility by not publicly taking positions in advance of the January 28, 2017 Council Goal-Setting Workshop. 8. Use this process as a way to learn from citizens and Council colleagues about what’s important. 9. Explore areas where the Council can come together for positive action. 10. Recognize that this is an important step, but only the first step, in the planning and budgeting for the next two years. 17.f Packet Pg. 276 Attachment: f - Guidelines for Council Members During Goal-Setting Process (1537 : 2017-19 Financial Plan Budget Foundation) ATTACHMENT 7 Criteria for Major City Goals 1. Be legitimate to our genuine beliefs (real, supported). 2. Agreed upon by a Council majority. 3. Limited in number for comprehension, communication and focus. 4. Set forth in one document—the Financial Plan. 5. Be clear and understandable. 6. Established as a high priority and a real commitment. 7. Reflect major goals that cannot be achieved without Council support. 8. Can be translated into the performance goals and objectives of employees at all levels of the organization. 9. Created within a supportive atmosphere where participants are not afraid to state their suggestions for improving goals or objectives. 10. Reflect genuine consensus: while unanimous agreement is not required, they should be accepted to the point where resistance to them is reduced or eliminated. 17.g Packet Pg. 277 Attachment: g - Criteria for Major City Goals (1537 : 2017-19 Financial Plan Budget Foundation) Fiscal Health & Governance Community Safety Culture & Recreation Infrastructure & Transportation Community & Neighborhood Livability Environmental Health & Open Space 17.h Packet Pg. 278 Attachment: h - SLO City Budget Organization (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES FINANCIAL PLAN PURPOSE AND ORGANIZATION A. Financial Plan Objectives. Through its Financial Plan, the City will link resources with results by: 1. Identifying community needs for essential services. 2. Organizing the programs required to provide these essential services. 3. Establishing program policies and goals, which define the nature and level of program services required. 4. Identifying activities performed in delivering program services. 5. Proposing objectives for improving the delivery of program services. 6. Identifying and appropriating the resources required to perform program activities and accomplish program objectives. 7. Setting standards to measure and evaluate the: a. Output of program activities. b. Accomplishment of program objectives. c. Expenditure of program appropriations. B. Two-Year Budget. Following the City's favorable experience, the City will continue using a two-year financial plan, emphasizing long-range planning and effective program management. The benefits identified when the City's first two-year plan was prepared for 1983-85 continue to be realized: 1. Reinforcing the importance of long-range planning in managing the City's fiscal affairs. 2. Concentrating on developing and budgeting for the accomplishment of significant objectives. 3. Establishing realistic timeframes for achieving objectives. 4. Creating a pro-active budget that provides for stable operations and assures the City's long-term fiscal health. 5. Promoting more orderly spending patterns. 6. Reducing the amount of time and resources allocated to preparing annual budgets. C. Measurable Objectives. The two-year financial plan will establish measurable program objectives and allow reasonable time to accomplish those objectives. D. Second Year Budget. Before the beginning of the second year of the two-year cycle, the Council will review progress during the first year and approve appropriations for the second fiscal year. E. Operating Carryover. Operating program appropriations not spent during the first fiscal year may be carried over for specific purposes into the second fiscal year with the approval of the City Manager. F. Goal Status Reports. The status of major program objectives will be formally reported to the Council on an ongoing, periodic basis. 17.i Packet Pg. 279 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES G. Mid-Year Budget Reviews. The Council will formally review the City’s fiscal condition, and amend appropriations if necessary, six months after the beginning of each fiscal year. LONG - TERM FINANCIAL PLANNING A. Balanced Budget. The City will maintain a balanced budget over the two-year period of the Financial Plan. This means that: 1. Operating revenues must fully cover operating expenditures, including debt service. 2. Ending fund balance (or working capital in the enterprise funds) must meet minimum policy levels. For the general and enterprise funds, this level has been established at 20% of operating expenditures. Under this policy, it is allowable for total expenditures to exceed revenues in a given year; however, in this situation, beginning fund balance can only be used to fund capital improvement plan proje cts, or other “one-time,” non-recurring expenditures. B. Long-Term Liabilities and Maintenance of Infrastructure. The City will give priority to applying unassigned fund-balance due to one-time expenditure savings or one-time increase in revenue to pay down long- term unfunded liabilities and invest in infrastructure and equipment. FINANCIAL REPORTING AND BUDGET ADMINISTRATION A. Annual Reporting. The City will prepare annual financial statements as follows: 1. In accordance with Charter requirements, the City will contract for an annual audit by a qualified independent certified public accountant. The City will strive for an unqualified auditors’ opinion. 2. The City will use generally accepted accounting principles in preparing its annual financial stat ements, and will strive to meet the requirements of the GFOA’s Award for Excellence in Financial Reporting program. 3. The City will issue audited financial statements within 180 days after year-end. B. Interim Reporting. The City will prepare and issue timely interim reports on the City’s fiscal status to the Council and staff. This includes: on-line access to the City’s financial management system by City staff; monthly reports to program managers; more formal quarterly reports to the Council and Department Heads; mid-year budget reviews; and interim annual reports. C. Budget Administration. As set forth in the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The City Mana ger has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances. 17.i Packet Pg. 280 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES D. Development Services Revenue. The City Manager may allocate or designate 75% of over-realized Development Services revenues exceeding adopted budget for the current fiscal year for temporary Development Services expenditures for the purpose of timely processing of development permit applications in the current fiscal year or throughout life of applicable projects. Any and all City Manager authorized allocations and funds set aside in a designation for future use, shall be reported to the Council on a semi- annual basis. GENERAL REVENUE MANAGEMENT A. Diversified and Stable Base. The City will seek to maintain a diversified and stable revenue base to protect it from short-term fluctuations in any one revenue source. B. Long-Range Focus. To emphasize and facilitate long-range financial planning, the City will maintain current projections of revenues for the succeeding five years. C. Current Revenues for Current Uses. The City will make all current expenditures with current revenues, avoiding procedures that balance current budgets by postponing needed expenditures, accruing future revenues, or rolling over short-term debt. D. Interfund Transfers and Loans. In order to achieve important public policy goals, the City has established various special revenue, capital project, debt service and enterprise funds to account for revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds, with its own revenue sources, expenditures and fund equity. Any transfers between funds for operating purposes are clearly set f orth in the Financial Plan, and can only be made by the Finance Director in accordance with the adopted budget. These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from interfund borrowings, which are usually made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources by the end of the fiscal year. In summary, interfund transfers result in a change in fund equity; interfund borrowings do not, as the intent is to repay the loan in the near term. From time-to-time, interfund borrowings may be appropriate; however, these are subject to the following criteria in ensuring that the fiduciary purpose of the fund is met: 1. The Finance Director is authorized to approve temporary interfund borrowings for cash flow purposes whenever the cash shortfall is expected to be resolved within 45 days. The most common use of interfund borrowing under this circumstance is for grant programs like the Community Development Block Grant, where costs are incurred before drawdowns are initiated and received. However, receipt of funds is typically received shortly after the request for funds has been made. 2. Any other interfund borrowings for cash flow or other purpo ses require case-by-case approval by the Council. 3. Any transfers between funds where reimbursement is not expected within one fiscal year shall not be recorded as interfund borrowings; they shall be recorded as interfund operating transfers that affect equity by moving financial resources from one fund to another. 17.i Packet Pg. 281 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES USER FEE COST RECOVERY GOALS A. Ongoing Review Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with changes in the cost-of-living as well as changes in methods or levels of service delivery. In implementing this goal, a comprehensive analysis of City costs and fees should be made at least every five years. In the interim, fees will be adjusted by annual changes in the Consumer Price Index. Fees may be adjusted during this interim period based on supplemental analysis whenever there have been significant changes in the method, level or cost of service delivery. B. User Fee Cost Recovery Levels In setting user fees and cost recovery levels, the following factor s will be considered: 1. Community-Wide Versus Special Benefit. The level of user fee cost recovery should consider the community-wide versus special service nature of the program or activity. The use of general-purpose revenues is appropriate for community-wide services, while user fees are appropriate for services that are of special benefit to easily identified individuals or groups. 2. Service Recipient Versus Service Driver. After considering community-wide versus special benefit of the service, the concept of service recipient versus service driver should also be considered. For example, it could be argued that the applicant is not the beneficiary of the City's development review efforts: the community is the primary beneficiary. However, the applicant is the driver of development review costs, and as such, cost recovery from the applicant is appropriate. 3. Effect of Pricing on the Demand for Services. The level of cost recovery and related pricing of services can significantly affect the demand and subsequent level of services provided. At full cost recovery, this has the specific advantage of ensuring that the City is providing services for which there is genuinely a market that is not overly-stimulated by artificially low prices. Conversely, high levels of cost recovery will negatively impact the delivery of services to lower income groups. This negative feature is especially pronounced, and works against public policy, if the services are specifically targeted to low income groups. 4. Feasibility of Collection and Recovery. Although it may be determined that a high level of cost recovery may be appropriate for specific services, it may be impractical or too costly to establish a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting charges should also be considered in developing user fees, especially if significant program costs are intended to be financed from that source. C. Factors Favoring Low Cost Recovery Levels Very low cost recovery levels are appropriate under the following circumstances: 17.i Packet Pg. 282 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES 1. There is no intended relationship between the amount paid and the benefit received. Almost all "social service" programs fall into this category as it is expected that one group will subsidize another. 2. Collecting fees is not cost-effective or will significantly impact the efficient delivery of the service. 3. There is no intent to limit the use of (or entitlement to) the service. Again, most "social service" programs fit into this category as well as many public safety (police and fire) emergency response services. Historically, access to neighborhood and community parks would also fit into this category. 4. The service is non-recurring, generally delivered on a "peak demand" or emergency basis, cannot reasonably be planned for on an individual basis, and is not readily available from a private sector source. Many public safety services also fall into this category. 5. Collecting fees would discourage compliance with regulatory requirements and adherence is primarily self-identified, and as such, failure to comply would not be readily detected by the City. Many small - scale licenses and permits might fall into this category. D. Factors Favoring High Cost Recovery Levels The use of service charges as a major source of funding service levels is especially appropriate under the following circumstances: 1. The service is similar to services provided through the private sector. 2. Other private or public sector alternatives could or do exist for the delivery of the service. 3. For equity or demand management purposes, it is intended that there be a direct relationship between the amount paid and the level and cost of the service received. 4. The use of the service is specifically discouraged. Police responses to disturbances or fals e alarms might fall into this category. 5. The service is regulatory in nature and voluntary compliance is not expected to be the primary method of detecting failure to meet regulatory requirements. Building permit, plan checks, and subdivision review fees for large projects would fall into this category. E. General Concepts Regarding the Use of Service Charges The following general concepts will be used in developing and implementing service charges: 1. Revenues should not exceed the reasonable cost of providing the service. 2. Cost recovery goals should be based on the total cost of delivering the service, including direct costs, departmental administration costs and organization-wide support costs such as accounting, personnel, information technology, legal services, fleet maintenance and insurance. 3. The method of assessing and collecting fees should be as simple as possible in order to reduce the administrative cost of collection. 17.i Packet Pg. 283 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES 4. Rate structures should be sensitive to the "market" for similar services as well as to smaller, infrequent users of the service. 5. A unified approach should be used in determining cost recovery levels for various programs based on the factors discussed above. F. Low Cost-Recovery Services Based on the criteria discussed above, the following types of services should have very low cost recovery goals. In selected circumstances, there may be specific activities within the broad scope of services provided that should have user charges associated with them. However, the primary source of fu nding for the operation as a whole should be general-purpose revenues, not user fees. 1. Delivering public safety emergency response services such as police patrol services and fire suppression. 2. Maintaining and developing public facilities that are provided on a uniform, community-wide basis such as streets, parks and general-purpose buildings. 3. Providing social service programs and economic development activities. G. Recreation Programs The following cost recovery policies apply to the City's recreation programs: 1. Cost recovery for activities directed to adults should be relatively high. 2. Cost recovery for activities directed to youth and seniors should be relatively low. In those circumstances where services are similar to those provided in the private secto r, cost recovery levels should be higher. Although ability to pay may not be a concern for all youth and senior participants, these are desired program activities, and the cost of determining need may be greater than the cost of providing a uniform service fee structure to all participants. Further, there is a community-wide benefit in encouraging high- levels of participation in youth and senior recreation activities regardless of financial status. 3. Cost recovery goals for recreation activities are set as follows: High-Range Cost Recovery Activities - (60% to 100%) a. Adult athletics b. Banner permit applications c. Child care services (except Youth STAR) d. Facility rentals (indoor and outdoor; excludes use of facilities for internal City uses) e. Triathlon f. Golf Mid-Range Cost Recovery Activities - (30% to 60%) g. Classes h. Holiday in the Plaza i. Major commercial film permit applications 17.i Packet Pg. 284 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES Low-Range Cost Recovery Activities- (0 to 30%) j. Aquatics k. Batting cages l. Community gardens m. Junior Ranger camp n. Minor commercial film permit applications o. Skate park p. Special events (except for Triathlon and Holiday in the Plaza) q. Youth sports r. Youth STAR s. Teen services t. Senior/boomer services 4. For cost recovery activities of less than 100%, there should be a differential in rates between re sidents and non-residents. However, the Director of Parks and Recreation is authorized to reduce or eliminate non-resident fee differentials when it can be demonstrated that: a. The fee is reducing attendance. b. And there are no appreciable expenditure savings from the reduced attendance. 5. Charges will be assessed for use of rooms, pools, gymnasiums, ball fields, special -use areas, and recreation equipment for activities not sponsored or co-sponsored by the City. Such charges will generally conform to the fee guidelines described above. However, the Director of Parks and Recreation is authorized to charge fees that are closer to full cost recovery for facilities that are heavily used at peak times and include a majority of non-resident users. 6. A vendor charge of at least 10 percent of gross income will be assessed from individuals or organizations using City facilities for moneymaking activities. 7. Director of Parks and Recreation is authorized to offer reduced fees such as introductory rates, family discounts and coupon discounts on a pilot basis (not to exceed 18 months) to promote new recreation programs or resurrect existing ones. 8. The Parks and Recreation Department will consider waiving fees only when the City Manager determines in writing that an undue hardship exists. H. Development Review Programs The following cost recovery policies apply to the development review programs: 1. Services provided under this category include: a. Planning (planned development permits, tentative tract and parcel maps, rezonings, general plan amendments, variances, use permits). b. Building and safety (building permits, structural plan checks, inspections). 17.i Packet Pg. 285 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES c. Engineering (public improvement plan checks, inspections, subdivision requirements, encroachments). d. Fire plan check. 2. Cost recovery for these services should generally be very high. In most instances, the City's cost recovery goal should be 100%. 3. However, in charging high cost recovery levels, the City needs to clearly establish and articulate standards for its performance in reviewing developer applications to ensure that there is “value for cost.” I. Comparability with Other Communities In setting user fees, the City will consider fees charged by other agencies in accordance with the following criteria: 1. Surveying the comparability of the City's fees to other communities provides useful background information in setting fees for several reasons: a. They reflect the "market" for these fees and can assist in assessing the reasonableness of San Luis Obispo’s fees. b. If prudently analyzed, they can serve as a benchmark for how cost-effectively San Luis Obispo provides its services. 2. However, fee surveys should never be the sole or primary criteria in setting City fees as there are many factors that affect how and why other communities have set their fees at their levels. For example: a. What level of cost recovery is their fee intended to achieve compared with our cost recovery objectives? b. What costs have been considered in computing the fees? c. When was the last time that their fees were comprehensively evaluated? d. What level of service do they provide compared with our service or performance standards? e. Is their rate structure significantly different than ours and what is it intended to achieve? 3. These can be very difficult questions to address in fairly evaluating fees among different communities. As such, the comparability of our fees to other communities should be one factor among many that is considered in setting City fees. ENTERPRISE FUND FEES AND RATES A. Water, Sewer and Parking. The City will set fees and rates at levels which fully cover the total direct and indirect costs—including operations, capital outlay, and debt service—of the following enterprise programs: water, sewer and parking. 17.i Packet Pg. 286 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES B. Transit. Based on targets set under the Transportation Development Act, the City will strive to cover at least twenty percent of transit operating costs with fare revenues. C. Ongoing Rate Review. The City will review and adjust enterprise fees and rate structures as required to ensure that they remain appropriate and equitable. D. Franchise Fees. In accordance with long-standing practices, the City will treat the water and sewer funds in the same manner as if they were privately owned and operated. This means assessing reasonable franchise fees in fully recovering service costs. At 3.5%, water and sewer franchise fees are based on the mid -point of the statewide standard for public utilities like electricity and gas (2% of gross revenues from operations) and cable television (5% of gross revenues). As with other utilities, the purpose of the franchise fee is reasonable cost recovery for the use of the City’s street right-of-way. The appropriateness of charging the water and sewer funds a reasonable franchise fee for the use of City streets is further supported by the results of studies in Arizona, California, Ohio and Vermont which concluded that the leading cause for street resurfacing and reconstruction is street cuts and trenching for utilities. REVENUE DISTRIBUTION The Council recognizes that generally accepted accounting principles for state and local governments discourage the “earmarking” of General Fund revenues, and accordingly, the practice of designating General Fund revenues for specific programs should be minimized in the City's management of its fiscal affairs. Approval of the following revenue distribution policies does not prevent the Council from directing General Fund resources to other functions and programs as necessary. A. Property Taxes. With the passage of Proposition 13 on June 6, 1978, California cities no longer can set their own property tax rates. In addition to limiting annual increases in market value, placing a ceiling on voter-approved indebtedness, and redefining assessed valuations, Proposition 13 establishe d a maximum county-wide levy for general revenue purposes of 1% of market value. Under subsequent state legislation, which adopted formulas for the distribution of this countywide levy, the City now receives a percentage of total property tax revenues collected countywide as determined by the State and administered by the County Auditor-Controller. The City receives 14.9% of each dollar collected in property tax after allocations to school districts. Accordingly, while property revenues are often thought of local revenue sources, in essence they are State revenue sources, since the State controls their use and allocation. With the adoption of a Charter revision in November 1996, which removed provisions that were in conflict with Proposition 13 relating to the setting of property tax revenues between various funds, all property tax revenues are now accounted for in the General Fund. B. Gasoline Tax Subventions. All gasoline tax revenues (which are restricted by the State for street -related purposes) will be used for maintenance activities. Since the City's total expenditures for gas tax eligible programs and projects are much greater than this revenue source, operating transfers will be made from the 17.i Packet Pg. 287 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES gas tax fund to the General Fund for this purpose. Thi s approach significantly reduces the accounting efforts required to meet State reporting requirements. C. Transportation Development Act (TDA) Revenues. All TDA revenues will be allocated to alternative transportation programs, including regional and munici pal transit systems, bikeway improvements, and other programs or projects designed to reduce automobile usage. Because TDA revenues will not be allocated for street purposes, it is expected that alternative transportation programs (in conjunction with oth er state or federal grants for this purpose) will be self-supporting from TDA revenues. D. Parking Fines. All parking fine revenues will be allocated to the parking fund, except for those collected by Police staff (who are funded by the General Fund) in implementing neighborhood wellness programs. INVESTMENTS A. Responsibility. Investments and cash management are the responsibility of the City Treasurer or designee. It is the City’s policy to appoint the Finance Director as the City’s Treasurer. B. Investment Objective. The City's primary investment objective is to achieve a reasonable rate of return while minimizing the potential for capital losses arising from market changes or issuer default. Accordingly, the following factors will be considered in priority order in determining individual investment placements: 1. Safety 2. Liquidity 3. Yield C. Tax and Revenue Anticipation Notes: Not for Investment Purposes. There is an appropriate role for tax and revenue anticipation notes (TRANS) in meeting legi timate short-term cash needs within the fiscal year. However, many agencies issue TRANS as a routine business practice, not solely for cash flow purposes, but to capitalize on the favorable difference between the interest cost of issuing TRANS as a tax -preferred security and the interest yields on them if re-invested at full market rates. As part of its cash flow management and investment strategy, the City will only issue TRANS or other forms of short-term debt if necessary to meet demonstrated cash flow needs; TRANS or any other form of short- term debt financing will not be issued for investment purposes. As long as the City maintains its current policy of maintaining fund/working capital balances that are 20% of operating expenditures, it is unlikely that the City would need to issue TRANS for cash flow purposes except in very unusual circumstances. D. Selecting Maturity Dates. The City will strive to keep all idle cash balances fully invested through daily projections of cash flow requirements. To avoi d forced liquidations and losses of investment earnings, cash flow and future requirements will be the primary consideration when selecting maturities. E. Diversification. As the market and the City's investment portfolio change, care will be taken to maint ain a healthy balance of investment types and maturities. F. Authorized Investments. The City will invest only in those instruments authorized by the California Government Code Section 53601. 17.i Packet Pg. 288 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES The City will not invest in stock, will not speculate and will not deal in futures or options. The investment market is highly volatile and continually offers new and creative opportunities for enhancing interest earnings. Accordingly, the City will thoroughly investigate any new investment vehicles before committi ng City funds to them. G. Authorized Institutions. Current financial statements will be maintained for each institution in which cash is invested. Investments will be limited to 20 percent of the total net worth of any institution and may be reduced further or refused altogether if an institution's financial situation becomes unhealthy. H. Consolidated Portfolio. In order to maximize yields from its overall portfolio, the City will consolidate cash balances from all funds for investment purposes, and will allocate investment earnings to each fund in accordance with generally accepted accounting principles. I. Safekeeping. Ownership of the City's investment securities will be protected through third-party custodial safekeeping. J. Investment Management Plan. The City Treasurer will develop and maintain an Investment Management Plan that addresses the City's administration of its portfolio, including investment strategies, practices and procedures. K. Investment Oversight Committee. As set forth in the Investment Management Plan, this committee is responsible for reviewing the City’s portfolio on an ongoing basis to determine compliance with the City’s investment policies and for making recommendations to the City Treasurer (Finance Director regarding investment management practices. Members include the City Manager, Assistant City Manager, Finance Director/City Treasurer, Accounting Manager, the City’s independent auditor, one City Council member, and one member of the public. The member of the public shall be appointed by the City Council in accordance with the City’s process for appointing advisory body members. L. Reporting. The City Treasurer will develop and maintain a comprehensive, well -documented investment reporting system, which will comply with Government Code Section 53607. This reporting system will provide the Council and the Investment Oversight Committee with appropriate investment performance information. APPROPRIATIONS LIMITATION A. The Council will annually adopt a resolution establishing the City's appropriations limit calculated in accordance with Article XIII-B of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriations limit. B. The supporting documentation used in calculating the City's appropriations limit and projected appropriations subject to the limit will be available for public and Council review at least 10 days before Council consideration of a resolution to adopt an appropriations limit. The Council will generally consider this resolution in connection with final approval of the budget. 17.i Packet Pg. 289 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES C. The City will strive to develop revenue sources, both new and existing, which are considered non -tax proceeds in calculating its appropriations subject to limitation. D. The City will annually review user fees and charges and report to the Council the amount of program subsidy, if any, that is being provided by the General or Enterprise Funds. E. The City will actively support legislation or initiatives sponsored or approved by League of California Cities which would modify Article XIII-B of the Constitution in a manner which would allow the City to retain projected tax revenues resulting from growth in the local economy for use as determined by the Council. F. The City will seek voter approval to amend its appropriation limit at such time that tax proceeds are in excess of allowable limits. FUND BALANCE AND RESERVES A. Minimum Fund and Working Capital Balances. The City will maintain a minimum fund balance of at least 20% of operating expenditures in the General Fund and a minimum working capital balance of 20% of operating expenditures in the water, sewer and parking enterprise funds. This is considered the minimu m level necessary to maintain the City's credit worthiness and to adequately provide for: 1. Economic uncertainties, local disasters, and other financial hardships or downturns in the local or national economy. 2. Contingencies for unseen operating or capital needs. 3. Cash flow requirements. B. Fleet Replacement. For the General Fund fleet, the City will establish and maintain a Fleet Replacement Fund to provide for the timely replacement of vehicles and related equipment with an individual replacement cost of $15,000 or more. During the 2015-17 Financial Plan period, the City will establish and maintain a minimum fund balance in the Fleet Replacement Fund equal to $500,000 for the emergency replacement of vehicles that are damaged beyond repair, and are either not covered under the City’s property insurance program or the vehicle has a high replacement cost and insurance proceeds will be inadequate to provide for the vehicle’s replacement (fire engine). Above this contingency level, the amount retained in this fund, coupled with the annual contributions received by it from any source, shall be adequate to fully fund the equipment replacements approved in the Financial Plan. Interest earnings and the proceeds from the sales of surplus equipment as well as any related damage and insurance recoveries will be credited to the Fleet Replacement Fund. C. Information Technology (IT) Replacement Fund. The City will establish an IT Replacement Fund for the General Fund to provide for the timely replacement of information technology, both hardware and software, with an individual replacement cost of $25,000 or more. During the 2015-17 Financial Plan period, the City will establish and maintain a minimum fund balance in this fund equal to $400,000 for the emergency replacement of equipment that is damaged beyond repair and not covered under the City’s property insurance program. Interest earnings and the proceeds from the sale of surplus equipment as well as any related damage and insurance recoveries will be credited to the fund. 17.i Packet Pg. 290 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES D. Major Facility Replacement Fund. The City will maintain a reserve within this fund for the purpose of funding the cost of improvements having a cost of $25,000 or more to city-owned, general government building and structures. The amount retained in this fund, coupled with annual contributions received by it from any source, to adequately fund maintenance and replacement of City facilities. E. Infrastructure Investment Fund. The City will maintain a reserve within this fund for the purpose of funding infrastructure projects that contribute to improved economic development and enhanced quality of life in the City of San Luis Obispo. The following evaluation criteria shall be applied to project eligibility: 1. The use of City funds shall not offset any cost that would be expected to be paid to meet the fair share obligation of any developer. 2. The use of City funds shall not offset a project specific cost identified through the environmental review process or under existing regulations or policies. 3. The use of funds shall support a project that would not otherwise be feasible due to economic, timing or other issues outside control of the project proponents or the City. 4. The project shall provide public benefit by contributing to economic development and quality of life within the City. E. Water and Sewer Rate Stabilization Reserves. The City will maintain a reserve for the purposes of offsetting unanticipated fluctuations in Water Fund or Sewer Fund revenues to provide financial stability, including the stability of revenues and the rates and charges related to each Enterprise. The funding target for the Rate Stabilization Reserve will be 10% of sales revenue in the Water Fund and 5% of sales revenue in the Sewer Fund. Conditions for utilization and plan for replenishment of the reserve will be brought to Council for its consideration during the preparation and approval of the Financial Plan or as may become necessary during any fiscal year. F. Future Capital Project Designations. The Council may designate specific fund balance levels for future development of capital projects that it has determined to be in the best long-term interests of the City. For example, replacement of critical information technology infrastructure or other projects. G. Other Designations and Reserves. In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances; and other reserves or designations required by contractual obligations, state law, or generally accepted accounting principles. CAPITAL IMPROVEMENT MANAGEMENT A. CIP Projects: $25,000 or More. Construction projects and equipment purchases which cost $25,000 or more will be included in the Capital Improvement Plan (CIP); minor capital outlays of less than $25,000 will be included with the operating program budgets. Such projects are accounted for in the Capital Outlay Fund. B. CIP Purpose. The purpose of the CIP is to systematically plan, schedule, and finance capital projects to ensure cost-effectiveness as well as conformance with establis hed policies. The CIP is a five-year plan 17.i Packet Pg. 291 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES organized into the same functional groupings used for the operating programs. The CIP will reflect a balance between capital replacement projects that repair, replace or enhance existing facilities, equipment or infrastructure; and capital facility projects that significantly expand or add to the City's existing fixed assets. C. Project Manager. Every CIP project will have a project manager who will prepare the project proposal, ensure that required phases are completed on schedule, authorize all project expenditures, ensure that all regulations and laws are observed, and periodically report project status. D. CIP Review Committee. Headed by the City Manager or designee, this Committee will review project proposals, determine project phasing, recommend project managers, review and evaluate the draft CIP budget document, and report CIP project progress on an ongoing basis. E. CIP Phases. The CIP will emphasize project planning, with projects progressing through at least two and up to ten of the following phases: 1. Designate. Appropriates funds based on projects designated for funding by the Council through adoption of the Financial Plan. 2. Study. Concept design, site selection, feasibility analysis, schematic design, environmental determination, property appraisals, scheduling, grant application, grant approval, specification preparation for equipment purchases. 3. Environmental Review. EIR preparation, other environmental studies. 4. Real Property Acquisitions. Property acquisition for projects, if necessary. 5. Site Preparation. Demolition, hazardous materials abatements, other pre-construction work. 6. Design. Final design, plan and specification preparation and construction cost estimation. 7. Construction. Construction contracts. 8. Construction Management. Contract project management and inspection, soils and material tests, other support services during construction. 9. Equipment Acquisitions. Vehicles, heavy machinery, computers, office furnishings, other equipment items acquired and installed independently from construction contracts. 10. Debt Service. Installment payments of principal and interest for completed projects funded through debt financings. Expenditures for this project phase are included in the Debt Service section of the Financial Plan. Generally, it will become more difficult for a project to move from one phase to the next. As such, more projects will be studied than will be designed, and more projects will be designed than will be constructed or purchased during the term of the CIP. F. CIP Appropriation. The City’s annual CIP appropriation for study, design, acquisition and/or construction is based on the projects designated by the Council through adoption of the Financial Plan. Adoption of the Financial Plan CIP appropriation does not automatically authorize funding for specific project phases. This 17.i Packet Pg. 292 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES authorization generally occurs only after the preceding project phase has been completed and approved by the Council and costs for the succeeding phases have been fully developed. Accordingly, project appropriations are generally made when contracts are awarded. If project costs at the time of bid award are less than the budgeted amount, the balance will be unappropriated and returned to fund balance or allocated to another project. If project costs at the time of bid award are greater than budget amounts, five basic options are available: 1. Eliminate the project. 2. Defer the project for consideration to the next Financial Plan period. 3. Rescope or change the phasing of the project to meet the existing budget. 4. Transfer funding from another specified, lower priority project. 5. Appropriate additional resources as necessary from fund balance. G. CIP Budget Carryover. Appropriations for CIP projects lapse three years after budget adoption. Projects which lapse from lack of project account appropriations may be resubmitted for inclusion in a subsequent CIP. Project accounts, which have been appropriated, will not lapse until completion of the project phase. H. Program Objectives. Project phases will be listed as objectives in the program narratives of th e programs, which manage the projects. I. Public Art. CIP projects will be evaluated during the budget process and prior to each phase for conformance with the City's public art policy, which generally requires that 1% of eligible project construction costs be set aside for public art. Excluded from this requirement are underground projects, utility infrastructure projects, funding from outside agencies, and costs other than construction such as study, environmental review, design, site preparation, land acquisition and equipment purchases. It is generally preferred that public art be incorporated directly into the project, but this is not practical or desirable for all projects; in this case, an in-lieu contribution to public art will be made. To ensure t hat funds are adequately budgeted for this purpose regardless of whether public art will be directly incorporated into the project, funds for public art will be identified separately in the CIP. J. General Plan Consistency Review. The Planning Commission will review the Preliminary CIP for consistency with the General Plan and provide is findings to the Council prior to adoption. CAPITAL FINANCING AND DEBT MANAGEMENT A. Capital Financing 1. The City will consider the use of debt financing only for one -time capital improvement projects and only under the following circumstances: a. When the project’s useful life will exceed the term of the financing. 17.i Packet Pg. 293 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES b. When project revenues or specific resources will be sufficient to service the long-term debt. 2. Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance expenditures. The issuance of short -term instruments such as revenue, tax or bond anticipation notes is excluded from this limitation. (See Investment Policy) 3. Capital improvements will be financed primarily through user fees, service charges, assessments, special taxes or developer agreements when benefits can be specifically attributed to users of the facility. Accordingly, development impact fees should be created and implemented at levels sufficient to ensure that new development pays its fair share of the cost of constructing necessary community facilities. 4. Transportation impact fees are a major funding source in financing transportation system imp rovements. However, revenues from these fees are subject to significant fluctuation based on the rate of new development. Accordingly, the following guidelines will be followed in designing and building projects funded with transportation impact fees: a. The availability of transportation impact fees in funding a specific project will be analyzed on a case - by-case basis as plans and specification or contract awards are submitted for City Manager or Council approval. b. If adequate funds are not available at that time, the Council will make one of two determinations:  Defer the project until funds are available.  Based on the high-priority of the project, advance funds from the General Fund, which will be reimbursed as soon as funds become available. Repayment of General Fund advances will be the first use of transportation impact fee funds when they become available. 5. The City will use the following criteria to evaluate pay-as-you-go versus long-term financing in funding capital improvements: a. Factors Favoring Pay-As-You-Go Financing 1. Current revenues and adequate fund balances are available or project phasing can be accomplished. 2. Existing debt levels adversely affect the City's credit rating. 3. Market conditions are unstable or present difficulties in marketing. b. Factors Favoring Long Term Financing 1. Revenues available for debt service are deemed sufficient and reliable so that long -term financings can be marketed with investment grade credit ratings. 2. The project securing the financing is of the type, which will support an investment grade credit rating. 3. Market conditions present favorable interest rates and demand for City financings. 17.i Packet Pg. 294 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES 4. A project is mandated by state or federal requirements, and resources are insufficient or unavailable. 5. The project is immediately required to meet or relieve capacity needs and current resources are insufficient or unavailable. 6. The life of the project or asset to be financed is 10 years or longer. 7. Vehicle leasing when market conditions and operational circumstances present fa vorable opportunities. B. Debt Management 1. The City will not obligate the General Fund to secure long-term financings except when marketability can be significantly enhanced. 2. An internal feasibility analysis will be prepared for each long-term financing which analyzes the impact on current and future budgets for debt service and operations. This analysis will also address the reliability of revenues to support debt service. 3. The City will generally conduct financings on a competitive basis. However, negoti ated financings may be used due to market volatility or the use of an unusual or complex financing or security structure. 4. The City will seek an investment grade rating (Baa/BBB or greater) on any direct debt and will seek credit enhancements such as letters of credit or insurance when necessary for marketing purposes, availability and cost-effectiveness. 5. The City will monitor all forms of debt annually coincident with the City's Financial Plan preparation and review process and report concerns and remedies, if needed, to the Council. 6. The City will diligently monitor its compliance with bond covenants and ensure its adherence to federal arbitrage regulations. 7. The City will maintain good, ongoing communications with bond rating agencies about its financia l condition. The City will follow a policy of full disclosure on every financial report and bond prospectus (Official Statement). C. Debt Capacity 1. General Purpose Debt Capacity. The City will carefully monitor its levels of general -purpose debt. Because our general purpose debt capacity is limited, it is important that we only use general purpose debt financing for high-priority projects where we cannot reasonably use other financing methods for two key reasons: a. Funds borrowed for a project today are not available to fund other projects tomorrow. b. Funds committed for debt repayment today are not available to fund operations in the future. 17.i Packet Pg. 295 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES In evaluating debt capacity, general-purpose annual debt service payments should generally not exceed 10% of General Fund revenues; and in no case should they exceed 15%. Further, direct debt will not exceed 2% of assessed valuation; and no more than 60% of capital improvement outlays will be funded from long-term financings. 2. Enterprise Fund Debt Capacity. The City will set enterprise fund rates at levels needed to fully cover debt service requirements as well as operations, maintenance, administration and capital improvement costs. The ability to afford new debt for enterprise operations will be evaluated as an integral part of the City’s rate review and setting process. D. Independent Disclosure Counsel The following criteria will be used on a case-by-case basis in determining whether the City should retain the services of an independent disclosure counsel in conjunction with specific project financings: 1. The City will generally not retain the services of an independent disclosure counsel when all of the following circumstances are present: a. The revenue source for repayment is under the management or control of the Cit y, such as general obligation bonds, revenue bonds, lease-revenue bonds or certificates of participation. b. The bonds will be rated or insured. 2. The City will consider retaining the services of an independent disclosure counsel when one or more of following circumstances are present: a. The financing will be negotiated, and the underwriter has not separately engaged an underwriter’s counsel for disclosure purposes. b. The revenue source for repayment is not under the management or control of the City, such as land - based assessment districts, tax allocation bonds or conduit financings. c. The bonds will not be rated or insured. d. The City’s financial advisor, bond counsel or underwriter recommends that the City retain an independent disclosure counsel based on the circumstances of the financing. E. Land-Based Financings 1. Public Purpose. There will be a clearly articulated public purpose in forming an assessment or special tax district in financing public infrastructure improvements. This should include a finding by the Council as to why this form of financing is preferred over other funding options such as impact fees, reimbursement agreements or direct developer responsibility for the improvements. New development should generally be expected to “pay its own way,” (i.e., provide funding through one mechanism or another that funds its “proportional share” of public improvement and infrastructure costs and ongoing operations and maintenance costs). (1) The City will consider the use of city-based funding sources to fund public facility and infrastructure improvements that provide for the health, safety and welfare of existing and 17.i Packet Pg. 296 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES future residents and/or provide measurable economic development and fiscal benefits. In evaluating whether the City will use city-based funding sources, the following evaluation criteria should be considered: (a) Significant public benefit, demonstrated by compliance with and furtherance of General Plan goals, policies, and programs (b) Alignment with the Major City Goals and other important objectives in place at the time of the application (c) Head of Household Job Creation (d) Housing Creation (e) Circulation/Connectivity Improvements (f) Net General Fund fiscal impact (2) The City generally will not fund or offer public financing for infrastructure improvements that confer only private benefit to individual property owners or development projects. (3) The City shall seek continuity (or improvements to) existing levels of municipal service by assuring adequate funding for the City’s operation, maintenance and infrastructure replacement costs.” 2. Eligible Improvements. Except as otherwise determined by the Council when proceedings for district formation are commenced, preference in financing public improvements through a special tax district shall be given for those public improvements that help achieve clearly identified community facility and infrastructure goals in accordance with adopted facility and infrastructure plans as set forth in key policy documents such as the General Plan, Specific Plan, Facility or Infrastructure Master Plans, or Capital Improvement Plan. Such improvements include study, design, construction and/or acquisition of: a. Public safety facilities. b. Water supply, distribution and treatment systems. c. Waste collection and treatment systems. d. Major transportation system improvements, such as freeway interchanges; bridges; intersection improvements; construction of new or widened arterial or collector streets (including related landscaping and lighting); sidewalks and other pedestrian paths; transit facilities; and bike paths. e. Storm drainage, creek protection and flood protection improvements. f. Parks, trails, community centers and other recreational facilities. g. Open space. 17.i Packet Pg. 297 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES h. Cultural and social service facilities. i. Other governmental facilities and improvements such as offices, information technology systems and telecommunication systems. School facilities will not be financed except under appropriate joint community facilities agreements or joint exercise of powers agreements between the City and school districts. 3. Active Role. Even though land-based financings may be a limited obligation of the City, we will play an active role in managing the district. This means that the City will select and retain the financing team, including the financial advisor, bond counsel, trustee, appraiser, disclosure counsel, assessment engineer and underwriter. Any costs incurred by the City in retaining these services will generally be the responsibility of the property owners or developer, and will be advanced via a deposit when an application is filed; or will be paid on a contingency fee basis from the proceeds from the bonds. 4. Credit Quality. When a developer requests a district, the City will carefully evaluate the applicant’s financial plan and ability to carry the project, including the payment of assessments and special taxes during build-out. This may include detailed background, credit and lender checks, and the preparation of independent appraisal reports and market absorption studies. For districts where one property owner accounts for more than 25% of the annual debt service obligation, a letter of credit further securing the financing may be required. 5. Reserve Fund. A reserve fund should be established in the lesser amount of: the maximum annual debt service; 125% of the annual average debt service; or 10% of the bond proceeds. 6. Value-to-Debt Ratios. The minimum value-to-debt ratio should generally be 4:1. This means the value of the property in the district, with the public improvements, should be at least four ti mes the amount of the assessment or special tax debt. In special circumstances, after conferring and receiving the concurrence of the City’s financial advisor and bond counsel that a lower value -to-debt ratio is financially prudent under the circumstances, the City may consider allowing a value-to-debt ratio of 3:1. The Council should make special findings in this case. 7. Appraisal Methodology. Determination of value of property in the district shall be based upon the full cash value as shown on the ad valorem assessment roll or upon an appraisal by an independent Member Appraisal Institute (MAI). The definitions, standards and assumptions to be used for appraisals shall be determined by the City on a case-by-case basis, with input from City consultants and district applicants, and by reference to relevant materials and information promulgated by the State of California, including the Appraisal Standards for Land-Secured Financings prepared by the California Debt and Investment Advisory Commission. 8. Capitalized Interest During Construction. Decisions to capitalize interest will be made on case -by-case basis, with the intent that if allowed, it should improve the credit quality of the bonds and reduce borrowing costs, benefiting both current and future property owners. 9. Maximum Burden. Annual assessments (or special taxes in the case of Mello-Roos or similar districts) should generally not exceed 1% of the sales price of the property; and total property taxes, special assessments and special taxes payments collected on the tax roll should generally not exceed 2%. 10. Benefit Apportionment. Assessments and special taxes will be apportioned according to a formula that is clear, understandable, equitable and reasonably related to the benefit received by—or burden attributed 17.i Packet Pg. 298 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES to—each parcel with respect to its financed improvement. Any annual escalation factor should generally not exceed 2%. F. Development Impact Fees Guidelines and Policies Development impact fees are one-time fees levied on new development, typically levied at the time building permits are issued, to fund a range of the City’s public facilities and infrastructure. Such fees are levied both on a citywide basis as well as for specific areas (e.g., the Specific Plan Areas). The levy of development impact fees is regulated by the State’s Mitigation Fee Act (Government Code Section 66000 et seq.). 1. Development impact fees should be set, consistent with the statutory “nexus” analysis and findings, to fund new development’s proportional share of public facility and infrastructure costs. 2. Improvements funded by development impact fees should be referenced generally in the appropriate planning documents (e.g., General Plan, Specific Plans, etc.) and reflected in the City’s Capital Improvement Program. 3. An exception to this policy may be created by a development agreement between the City and a private developer. In this case public investments are offset by measurable public benefits. 4. The City’s development impact fees can be “leveraged” through the use of fee credit and reimbursement agreements with developers and landowners. 5. The City’s aggregate fee levels should not render new development that is otherwise consistent with City plans and regulations economically infeasible. Aggregate fee levels should be evaluated in terms of a reasonable standard, but not a strict limit (e.g., aggregate fee levels should not exceed an average of approximately 10 to 12 percent of the market value of the new development, either on a per-unit or per-square foot basis). 6. The City may consider reductions or waivers of its development impact fees in cases where a development project meets specific City planning or economic development policies such as affordable housing projects. In such cases the amount of funding foregone must be replaced with other funding sources available to the City. 1. Special Tax District Administration. In the case of Mello-Roos or similar special tax districts, the total maximum annual tax should not exceed 110% of annual debt service. The rate and meth od of 17.i Packet Pg. 299 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES apportionment should include a back-up tax in the event of significant changes from the initial development plan, and should include procedures for prepayments. 1. Community Facilities Districts or Assessment Districts offer a way to fund infrastructure, maintenance, or municipal services through special taxes or assessments levied on property owners benefiting from the thus-funded improvements or services. It can be used for both capital improvements and ongoing facility maintenance or services. 2. The City will consider the formation of financing districts using the State’s assessment law or the Mello-Roos Community Facilities Act for its newly developing areas on a case- by-case basis, consistent with technical analysis and City priorities (i.e., capital or ongoing funding). 3. The City will consider the effect of the special tax on the City’s ability to issue General Obligation bonds or other property-based tax measures. 4. Such districts should fund infrastructure or services serving or otherwise providing benefit to the area subject to the assessment or special tax. 5. Such districts can fund public facilities or infrastructure otherwise funded with the City’s development impact fees or project-specific exactions. In such cases the area’s development impact fee obligations will be adjusted proportionately. 6. Within any such districts, property value-to-lien ratio should, consistent with typical underwriting standards, be at least 4.0:1 after calculating the value of the financed public improvements to be installed and considering any prior or pending special taxes or improvement liens. 7. Consistent with underwriting standards and market considerations, and as a matter of policy, the City will limit the maximum amount of special taxes to be levied on any parcel of property within a Community Facilities District, in any given fiscal year, together with the general property taxes, general obligation bonds, and other special taxes and assessments levied on such parcel, shall not exceed an amount equal to one and eight- tenths percent (1.8 percent) of the projected assessed value of the parcel (and improvements if applicable). How the special tax capacity is allocated between capital and ongoing expenditures will depend upon the City’s priorities. 17.i Packet Pg. 300 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES 8. The City shall have discretion to allow a special tax in excess of the established limits for any lands within the CFD which are designated for commercial or industrial uses. 9. As a part of such district formations, the City will retain a special tax consultant to prepare a report which recommends a special tax rate and method for the proposed CFD and evaluates the special tax proposed to determine its ability to adequately fund identified public facilities, City administrative costs, services (if applicable) and other related expenditures. 2. Foreclosure Covenants. In managing administrative costs, the City will establish minimum delinquency amounts per owner, and for the district as a whole, on a case-by-case basis before initiating foreclosure proceedings. 3. Disclosure to Bondholders. In general, each property owner who accounts for more than 10% of the annual debt service or bonded indebtedness must provide ongoing disclosure information annually as described under SEC Rule 15(c)-12. 4. Disclosure to Prospective Purchasers. Full disclosure about outstanding balances and annual payments should be made by the seller to prospective buyers at the time that the buyer bids on the property. It should not be deferred to after the buyer has made the decision to purchase. When appropria te, applicants or property owners may be required to provide the City with a disclosure plan. G. Conduit Financings 1. The City will consider requests for conduit financing on a case-by-case basis using the following criteria: a. The City’s bond counsel will review the terms of the financing, and render an opinion that there will be no liability to the City in issuing the bonds on behalf of the applicant. b. There is a clearly articulated public purpose in providing the conduit financing. c. The applicant is capable of achieving this public purpose. 2. This means that the review of requests for conduit financing will generally be a two -step process: a. First asking the Council if they are interested in considering the request, and establishing the ground rules for evaluating it. b. And then returning with the results of this evaluation, and recommending approval of appropriate financing documents if warranted. This two-step approach ensures that the issues are clear for both the City and applicant, and that key policy questions are answered. 3. The workscope necessary to address these issues will vary from request to request, and will have to be determined on a case-by-case basis. Additionally, the City should generally be fully reimbursed for our costs in evaluating the request; however, this should also be determined on a case-by-case basis. 17.i Packet Pg. 301 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES B. Refinancings 1. General Guidelines. Periodic reviews of all outstanding debt will be undertaken to determine refinancing opportunities. Refinancings will be considered (within federal tax law constraints) under the following conditions: a. There is a net economic benefit. b. It is needed to modernize covenants that are adversely affecting the City’s financial position or operations. c. The City wants to reduce the principal outstanding in order to achieve future debt service savings, and it has available working capital to do so from other sources. 2. Standards for Economic Savings. In general, refinancings for economic savings will be undertaken whenever net present value savings of at least five percent (5%) of the refunded debt can be achieved. a. Refinancings that produce net present value savings of less than five percent will be considered on a case-by-case basis, provided that the present value savings are at least three percent (3%) of the refunded debt. b. Refinancings with savings of less than three percent (3%), or with negative savings, will not be considered unless there is a compelling public policy objective. C. Enhanced Infrastructure Financing District Guidelines and Policies a. EIFD financing should be considered for public facilities or infrastructure improvements that confer Citywide and/or regional benefits. This may include the “City share” of infrastructure included in the City’s development impact fees. b. Unless there is a Development Agreement in place that provides otherwise, EIFDs should not be used to fund real estate projects’ proportional share of infrastructure costs otherwise included in the City’s development impact fees or charged as project-specific exactions (e.g., subdivision improvements). c. City should consider EIFDs when more than one local government jurisdiction is participating to produce maximum benefit. d. At the time of formation of the EIFD (or if changes to the EIFD are contemplated), the City should require a fiscal impact analysis to determine if an EIFD is fiscally prudent and analyze opportunity cost to the City’s General Fund. HUMAN RESOURCE MANAGEMENT A. Regular Staffing 1. The budget will fully appropriate the resources needed for authorized regular staffing and will limit programs to the regular staffing authorized. 17.i Packet Pg. 302 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES 2. Regular employees will be the core work force and the preferred means of staffing ongoing, year -round program activities that should be performed by full-time City employees rather than independent contractors. The City will strive to provide competitive compensation and benefit schedules for its authorized regular work force. Each regular employee will: a. Fill an authorized regular position. b. Be assigned to an appropriate bargaining unit, unless designated as an unrepresented management or confidential classification. c. Receive salary and benefits consistent with labor agreements or other compensation plans. 3. To manage the growth of the regular work force and overall staffing costs, the City will fol low these procedures: a. The Council will authorize all regular positions. b. The Human Resources Department will coordinate and approve the hiring of all regular and supplemental staff. c. All requests for additional regular positions will include evaluations of:  The necessity, term and expected results of the proposed activity.  Staffing and materials costs including salary, benefits, equipment, uniforms, clerical support and facilities.  The ability of private industry to provide the proposed service.  Additional revenues or cost savings, which may be realized. 4. Periodically, and before any request for additional regular positions, programs will be evaluated to determine if they can be accomplished with fewer regular employees. (See Productivity Review Policy) 5. Staffing and contract service cost ceilings will limit total expenditures for regular employees, supplemental staff, and independent contractors hired to provide operating and maintenance services. B. Supplemental Staff 1. The hiring of supplemental staff will not be used as an incremental method for expanding the City's regular work force. 2. Supplemental staff include all employees other than regular employees, elected officials and volunteers. Supplemental staff include temporary employees, interns, and contract employees. Supplemental staff may work on a full-time or part-time basis and will generally augment regular City staffing. Supplemental staff may be used as extra-help during peak workloads, as coverage during extended absences of regular employees, seasonal workforce, as a means to assess ongoing staffing needs, or as the staffing method for program delivery that is most effectively staffed using part -time hours to ensure adequate coverage. 3. The City Manager and Department Heads will encourage the use of supplemental staff rather than regular employees to meet peak workload requirements, fill interim vacancies, and accomplish tasks where less than full-time, year-round staffing is required. 17.i Packet Pg. 303 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES Under this guideline, supplemental staff hours will generally not exceed 50% of a regular, full-time position (1,000 hours annually). There may be limited circumstances where the use of supplemental staff on an ongoing basis in excess of this target may be appropriate due to unique programming or staffing requirements. However, any such exceptions must be approved by the City Manager based on the review and recommendation of the Human Resources Director. 4. Contract employees are defined as supplemental staff with written contracts approved by the City Manager who may receive approved benefits Contract employees will generally be used for medium-term (generally between six months and two years) projects, programs or activities requiring specialized or augmented levels of staffing for a specific period. The services of contract employees will be discontinued upon completion of the assigned project, program or activity. Accordingly, contract employees will not be used for services that are anticipated to be delivered on an ongoing basis and as such, a determination as to the expected need will be made at the end of each contract term and prior to extending or renewing a contract. C. Overtime Management 1. Overtime should be used only when necessary and when other alternatives are not feasible or cost effective. 2. All overtime must be pre-authorized by a department head or delegate unless it is assumed pre-approved by its nature. For example, overtime that results when an employee is assigned to standby and/or must respond to an emergency or complete an emergency response. 3. Departmental operating budgets should reflect anticipated annual overtime costs and departments will regularly monitor overtime use and expenditures. 4. When considering the addition of regular or temporary staffing, the use of overtime as an alternative will be considered. The department will take into account: a. The duration that additional staff resources may be needed. b. The cost of overtime versus the cost of additional staff. c. The skills and abilities of current staff. d. Training costs associated with hiring additional staff. e. The impact of overtime on existing staff. D. Independent Contractors Independent contractors are not City employees. They may be used in two situations: 1. Short-term, peak workload assignments to be accomplished using personnel contracted through an outside temporary employment agency (OEA). In this situation, it is anticipated that City staff will closely monitor the work of OEA employees and minimal training will be required. However, they will always be considered the employees of the OEA and not the City. All placements through an OEA will 17.i Packet Pg. 304 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES be coordinated through the Human Resources Department and subject to the approval of the Human Resources Director. 2. Construction of public works projects and delivery of operating, maintenance or specializ ed professional services not routinely performed by City employees. Such services will be provided without close supervision by City staff, and the required methods, skills and equipment will generally be determined and provided by the contractor. Contract awards will be guided by the City's purchasing policies and procedures. (See Contracting for Services Policy) PRODUCTIVITY Ensuring the “delivery of service with value for cost” is one of the key concepts embodied in the City's Mission Statement (San Luis Obispo Style— Quality With Vision). To this end, the City will constantly monitor and review our methods of operation to ensure that services continue to be delivered in the most cost -effective manner possible. This review process encompasses a wide range of productivity issues, including: A. Analyzing systems and procedures to identify and remove unnecessary review requirements. B. Evaluating the ability of new technologies and related capital investments to improve productivity. C. Developing the skills and abilities of all City employees. D. Developing and implementing appropriate methods of recognizing and rewarding exceptional employee performance. E. Evaluating the ability of the private sector to perform the same level of service at a lower cost. F. Periodic formal reviews of operations on a systematic, ongoing basis. G. Maintaining a decentralized approach in managing the City's support service functions. Although some level of centralization is necessary for review and control purposes, decentralization supports productivity by: 1. Encouraging accountability by delegating responsibility to the lowest possible level. 2. Stimulating creativity, innovation and individual initiative. 3. Reducing the administrative costs of operation by eliminating unnecessary review procedures. 4. Improving the organization's ability to respond to changing needs, and identify and implement cost - saving programs. 5. Assigning responsibility for effective operations and citizen responsiveness to the department. H. Maintaining City purchasing policies and procedures that are as efficient and effective as possible. 17.i Packet Pg. 305 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) BUDGET REFERENCE MATERIALS Attachment 9 BUDGET AND FISCAL POLICIES CONTRACTING FOR SERVICES A. General Policy Guidelines 1. Contracting with the private sector for the delivery of services provides the City with a significant opportunity for cost containment and productivity enhancements. As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost-effective programs. 2. Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies and ongoing operating and maintenance services. 3. In evaluating the costs of private sector contracts compared with in -house performance of the service, indirect, direct, and contract administration costs of the City will be identified and considered. 4. Whenever private sector providers are available and can meet established service levels, they will be seriously considered as viable service delivery alternatives using the evaluation criteria outlined below. 5. For programs and activities currently provided by City employees, conversions to contract services will generally be made through attrition, reassignment or absorption by the contractor. B. Evaluation Criteria Within the general policy guidelines stated above, the cost -effectiveness of contract services in meeting established service levels will be determined on a case-by-case basis using the following criteria: 1. Is a sufficient private sector market available t o competitively deliver this service and assure a reasonable range of alternative service providers? 2. Can the contract be effectively and efficiently administered? 3. What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages? 4. Can a private sector contractor better respond to expansions, contractions or special requirements of the service? 5. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated, as well as the contractor's performance after bid award? 6. Does the use of contract services provide us with an opportunity to redefine service levels? 7. Will the contract limit our ability to deliver emergency or other high prior ity services? 8. Overall, can the City successfully delegate the performance of the service but still retain accountability and responsibility for its delivery? 17.i Packet Pg. 306 Attachment: i - Budget and Fiscal Policies_2017-19 [Revision 1] (1537 : 2017-19 Financial Plan Budget Foundation) General Fund Economic Outlook: 2017-22 Steady Growth Equally Challenged by Expenditure Growth and Uncertainties December 2016 17.j Packet Pg. 307 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation)   Purpose of Economic Outlook The purpose of Economic Outlook is to assess the General Fund’s ability over the next five years to accomplish five things: 1. Deliver current service levels; 2. Maintain existing infrastructure and facilities. 3. Preserve the City’s long-term fiscal health by aligning operating revenues and expenditures; 4. Maintain fund balance at policy levels; and 5. Reinvest in the General Fund supported Capital Improvement Program, particularly in areas that are underfunded such as infrastructure maintenance, fleet replacement, IT replacement, and facilities maintenance. The Economic Outlook presents with an overview of the General Fund over the next five years. The outlook focuses on major revenue sources and significant drivers for the expenditures to access the fund’s ability to accomplish the five criteria listed above focusing on long-term financial health. The theme of this forecast is “Steady Growth Equally Challenged by Expenditure Growth and Uncertainties.” On February 21, 2016, a more detailed General Fund Five-Year Forecast will be presented to Council based on audited 2015-16 year-end results and six months of revenue and expenditure data since the adoption of the 2016- 17 Supplemental Budget, when the Council was last presented with a Five-Year Forecast. It is important to stress that this Economic Outlook forecast is not a budget. The forecast sets the stage for the upcoming budget process but it does not represent formally adopted revenues or expenditures. Its purpose is to provide context for considering the City’s ability to continue current services, maintain existing assets and/or fund new initiatives. The Government Finance Officers Association (GFOA) recommends that governments of all levels forecast major revenues and expenditures extending over several years into the future. The forecast should be clearly stated and made available to stakeholders in the budget process. It should also be regularly monitored and periodically updated. The City of San Luis Obispo, through its financial planning process, embraces each of these recommendations in making the forecast an integral part of the budget process. 17.j Packet Pg. 308 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation)   Summary of Findings Although all major revenues continue to point in the positive direction, the trends in major revenues highly reactive to economic fluctuations show slower growth in the recent months. Coupled with expenditure growth due to projected consumer price index growth and labor market trends as well as infrastructure needs and proactive allocation of resources to pay down unfunded liabilities, this Economic Outlooks shows revenue and expenditure trends closely aligned.     The City of San Luis Obispo contracts with Beacon Economics to provide with Economic Forecast for the City of San Luis Obispo. Beacon Economics forecast is based on time- series econometric techniques based on historical correlations and forecasts of future economic trends. Beacon Economics utilizes a layered approach based on the National, State of California and regional forecast. In summary, the United States economy continues to expand at a mediocre rate and the Gross National Product growth rate is currently forecasted at 1.5% to 2%. California economy for the fourth year in a row, outpaced the nation in job growth as well as output. The Economic Outlook focuses on review of major sources of revenue for the City. Sales Tax represents approximately 36% of the General Fund Revenue, followed by Property Tax at 14%, Transient Occupancy Tax at 10%, Utility Users Tax at 8%, and Development Review Fees at 7%. Sales Tax and Transient Occupancy Tax revenue sources are highly correlated with economic fluctuations. The City contracts with HdL Companies to monitor sales tax receipts and trends. The results of the 2nd quarter showed a significant decrease in sales tax receipts on gasoline due to gasoline low prices. Statewide sales tax rates expectations for 2016-17 have been lowered to 2.3% by HdL forecast and this expectation is conservatively carried through the five year forecast. The City of San Luis Obispo continue to benefit from its diverse and dynamic demographic and employment related structures. The sales tax growth is projected at just above 2.7% by HdL throughout the 2017-19 Financial Plan and at 2.5% to 2.6% thereafter. The City sales tax forecast for 2017-18 is projected at 3% based on current economic development in downtown San Luis Obispo. This projection will be closely monitored and updated with the Five-Year General Fund Forecast. Fiscal Year Beacon HdL Fiscal Forecast 2017-18 3.70% 2.70% 3.00% 2018-19 3.60% 2.60% 2.60% 2019-20 3.70% 2.50% 2.50% 2020-21* 3.70% 2.50% 2.50% 2021-22* 2.60% 2.60% Property Tax estimated revenue continues to show positive strong growth. 2015-16 actual property tax revenue growth was 5% over the previous year. Beacon Economics forecast based on assessed valuation trend over time and building permits, shows an expected growth rate above 6% through fiscal year 2017-18 and above 5% in the outer years. In addition, three significant projects are underway in San Luis Obispo incorporated area that are expected to significantly contribute to the property tax revenue growth for the City. The projects are Monterey Hotel, Garden Street Terraces and China Town. The Economic outlook is based on a 6% growth projection through the 2017-19 Financial Plan, 5.5% percent growth in 2019-20 and 5% growth thereafter due to higher degree of uncertainty in the outer years. Steady Growth Equally Challenged by Expenditure Growth and Uncertainties. 17.j Packet Pg. 309 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Transient Occupancy Tax is another revenue sources that is highly correlated with economic fluctuations that affect tourism. After seeing a slowing growth trend through the later part of fiscal year 2015-16, the City is continuing to experience that softening in the tourism marketing into the first quarter of 2016-17. Traditionally the first quarter of the fiscal year  tends to be the strongest indicator for the strength of the tourism market as it represents the peak travel season. Based on this softening  trend, the City forecasting the adjustment in the TOT growth from 5% over the previous fiscal year to 4% and will continue to monitor the trend. Overall the softening in the marketing can be attributed to a number of factors including: addition of new lodging properties in competing destinations countywide as well as the business development of recently opened properties. In addition, various properties throughout the city have undergone renovations within the last year reducing the number of rooms available to be sold to visitors. Staff will continue to monitor the trends and analyze the impacts of the three significant hotel developments mentioned in the property tax discussion. Utility User’ tax forecast is maintained at the level presented to the Council with the 2016-17 Supplemental Budget. The City works closely with MuniServices to monitor the revenue stream and the impacts of new technologies. Development Services review is a highly fluctuating revenue stream and the Council adopted with the 2014-15 Supplemental Budget a policy granting authority to the City Manager to allocate 75% of over-realized Development Services revenue for temporary staffing in order to timely process development services applications and related permanent processing activities. On the expenditure side, the forecast is based on a modest economic growth, inflation and compensation growth of 2.5% overall, excluding retirement contribution expenditures to California Public Employees Retirement System (CalPERS). The Capital Improvement Program expenditure forecast is based on the 2015-17 Financial Plan adopted capital improvement budget and city fiscal policies. CalPERS required contribution rates and strategy to pay down unfunded liability continues to be a priority. As expected, the new funding formula approved by the governing board of the California Public Employees Retirement System (CalPERS) has increased the annual contributions required to fund the program. This funding formula took effect in 2015-16 and is designed to fully amortize the remaining unfunded retirement liabilities over 30 years. While the City has made significant progress in its efforts to contain retirement costs, such as adding 2nd and 3rd Tier benefit programs that now reflect membership by 20% of the total employees and increasing employee contributions toward the cost of retirement, the fiscal forecast still reflects a significant increase in the annual cost of retirement benefits as a result of these funding formula changes. In February of 2015, the Council adopted a guiding principle to prioritize allocation of one- time funds available to pay down 1) Unfunded Pension Liability, 2) Other Post-Employment Benefits, 3) Roads Infrastructure, and 4) Equipment Replacement Fund in that order. Since 2014, the Council appropriated $2.7 million in prepayments toward unfunded liability of the safety side fund. The prepayments are applied to decrease the unfunded liability. The overall plan performance depends actuarial assumptions and an expected long-term rate of return of 7.5%. The actual rate of return in 2014-15 was 2.4%. 17.j Packet Pg. 310 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) The graph above depicts revenues over expenditures over time. As shown above, assuming normal 2.5% growth in expenditures to maintain current levels of service and the rates of increase in major revenue categories, shows a balanced budget over the next five years but with little to no capacity for growth in ongoing expenditures. As a result of the City’s continuously improving economic condition, combined with prudent and fiscally responsible actions taken to control costs in recent years, the City continues to be well positioned to cover these escalating employee benefit costs while also identifying opportunities to make new and important investments in our community. This Economic Outlook projects full payment of cost increases identified in CalPERS’ actuarial retirement valuation reports. The forecast also anticipates funding will continue to be dedicated towards vital community services and infrastructure. The Economic Outlook projects a fund balance which exceeds the City’s 20% fund balance policy reserve requirement. These reserves are an essential first line of defense against unexpected economic emergencies or natural disaster. 17.j Packet Pg. 311 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) City of San Luis Obispo Revenue Forecast November 2016 17.j Packet Pg. 312 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) City of San Luis Obispo Revenue Forecast This publication was prepared for: City of San Luis Obispo This publication was prepared by: Beacon Economics Christopher Thornberg Robert Kleinhenz Founding Partner Economist and Executive Director of Research 5777 West Century Boulevard, Suite 895 5777 West Century Boulevard, Suite 895 Los Angeles, California 90045 Los Angeles, California 90045 310.571.3399 424.646.4652 Chris@BeaconEcon.com Robert@BeaconEcon.com Eric Meux Justin Niakamal Manager, Economic Research Research Associate Eric@BeaconEcon.com Justin@BeaconEcon.com For further information about this publication please contact: Victoria Pike Bond Rick Smith Director of Communications Director of Business Development Beacon Economics, LLC Beacon Economics, LLC 415.457.6030 858.997.1834 Victoria@BeaconEcon.com Rick@BeaconEcon.com Or visit our website at www.BeaconEcon.com. Reproduction of this document or any portion therein is prohibited without the expressed written permission of Beacon Economics. Copy- right ©2016 by Beacon Economics LLC. 17.j Packet Pg. 313 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Beacon Economics Report Overview Beacon Economics, LLC has undertaken a forecast of several key revenue streams in the City of San Luis Obispo ex- tendingouttothe2020–21fiscalyear.Theforecastpresentedhereusesstandardtime-serieseconometrictechniques based on historical correlations and forecasts of future economic trends.Beacon Economics’ method of forecasting follows a layered approach: National policy changes and external shocks are built into a U. S. model with a variety of economic indicators including GDP, production, demographics, interest rates, government spending, taxes, savings, income growth and real estate.Beacon Economics then crafts a California model that incorporates macro trends at the national level with trends in the statewide economy including employment/labor markets, demographics, real estate, and business activity indicators. Takingintoaccountthesestateandnationalfactors,Beacon Economics setsuparegionalmodelforSanLuisObispo County and the City of San Luis Obispo using macro trends to create a local forecast that delivers a broad outlook for the region including: Employment by industry Unemployment rate Consumer spending and income trends Population and components of change Residential and nonresidential real estate and construction. Theregionalassessmenthighlightsthemajordriversatthenationallevel,continueswithdevelopmentsintheState of California, and zooms in on the economy of San Luis Obispo County and the City of San Luis Obispo to provide a forecast of the City’s key revenue streams extending out to fiscal year 2020–21. National and State Economies The future direction of the City of San Luis Obispo economy is heavily contingent on what transpires within the national and state economies. In the most recent edition of Beaconomics (free of charge at www.BeaconEcon.com), Beacon Economics provides an in-depth analysis of current national and state economic trends. Below is a brief summary of what Beacon Economics sees happening in the U.S. and California economies. United States Economy TheU.S.economicexpansioncontinuestomovealongatasteady,ifmediocre,pace.Thereislittlereasontobe- lievethatthenationwillstrayfromitscurrentpathofgrowthin2016.BeaconEconomicscontinuestoforecast growth in the 1.5% to 2.0% range for the year overall, with perhaps better numbers next year. Retail sales were growing at their weakest pace in years at the end of 2015. But interpreting these data can be tricky because they are based on nominal numbers and because inflation is the slowest it has been in decades. Real spending data from the Bureau of Economic Analysis indicates that 2015 was a strong year for consumer spending on goods, particularly in the auto sector, with U.S. automakers enjoying a record year. During the first half of 2016, there were increases in nominal growth because more time had elapsed since the decline in energy prices, which had been a drag on inflation. City of San Luis Obispo Revenue Forecast 1 17.j Packet Pg. 314 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Beacon Economics The building industry has been one of the slowest to recover in the United States, but the pace of construction isrising,and2016isshapinguptobeagoodyear.Fundamentalssuchastheaverageequityshareofownersand the overall housing vacancy rate have finally returned to historic norms. Credit is slowly easing for borrowers, and household formation is picking up. Home prices are still relatively good, given low mortgage rates. U.S. exports have been a concern lately, but despite a slowdown in China and a strong U.S. dollar, exporters increased their overseas sales slightly in 2015 over the previous year. The widening trade deficit last year was driven by imports, as U.S. consumers ramped up spending. During the first half of 2016, exports did not im- prove in real terms, but this is more a reflection of a weak global market than a warning sign for the domestic economy. There are plenty of reasons why the U.S. economy will not grow as rapidly as everyone would like over the next couple of years, but there is little reason to believe that growth will stop. Sometimes it pays to be a tor- toise—particularly when that tortoise offers the relatively high quality of life that so many Americans enjoy. California Economy California did it again. The high-priced, over-regulated, wacky state that everyone loves to hate turned in an- other strong performance in 2015. For the fourth year in a row, California outpaced the nation in job growth as well as output. The State’s labor market has continued to post strong job gains as employment growth for the first half of 2016 came in at 2.8%, just below the 3.0% rate for all of 2015. The unemployment rate has maintained a steady downward trajectory and stood at 5.4% as of June 2016, down from 6.2% a year prior. Nearly every industry in California experienced job gains over the last year, generally adding to the gains of recentyears.Professional,Scientific,andTechnicalServices,EducationandHealth,andLeisureandHospitality Services led the state’s industries, combining to produce more than 50% of the state’s total job gains last year. California’shousingmarketcontinueditsupwardtrajectoryoverthelastyearintermsofprices,sales,andnew construction. The statewide median price for a home was $416,700 in the second quarter of 2016, an increase of 5.9% from one year earlier. Sales were slightly higher in the first half of 2016 compared to the same time period one year prior but were constrained by lean inventories. Looking ahead, higher home prices and sales ought to trigger an increase in construction over this year and next, driven mainly by income growth, low but rising mortgage rates, and demographics. Despite concerns over the business climate, the state’s economy is one of the most dynamic in the country, as evidenced by the large amount of venture capital it has attracted on a consistent basis over the last several years. City of San Luis Obispo Revenue Forecast Real Estate Driven Revenues The local real estate market has been on sure footing over this last year as price growth remains robust, and market fundamentals point towards continued growth in the years to come. This bodes well for the City’s revenues tied to real estate market activity, such as property tax and property transfer tax. Construction activity is steady, and City of San Luis Obispo Revenue Forecast 2 17.j Packet Pg. 315 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Beacon Economics consumer price growth in California has been trending back towards historical norms. All factors contribute to an optimistic outlook. 0 200 400 600 800 $ 000sQ1-80 Q1-90 Q1-00 Q1-10 Q1-20 Actual Forecast Source: Forecast by Beacon Economics Median Home Price 4 6 8 10 %Q1-90 Q1-00 Q1-10 Q1-20 Actual Forecast Source: Forecast by Beacon Economics 30-Year Mortgage Rate 20 30 40 50 60 $ 000sQ1-90 Q1-00 Q1-10 Q1-20 Actual Forecast Source: Forecast by Beacon Economics Inflation Adjusted Annual Cost 40 60 80 100 120 140 % of Per-Capita IncomeQ1-90 Q1-00 Q1-10 Q1-20 Actual Forecast Source: Forecast by Beacon Economics Housing Affordability Prices matter, but so do rates, inflation, and income San Luis Obispo County Home Price Outlook 0 11 1 1 1 Units (000s)Q1-90 Q1-00 Q1-10 Q1-20 Value Forecast Source: Forecast by Beacon Economics Existing Home Sales 0 0 0 0 0 0 Units (000s)Q1-06 Q3-08 Q1-11 Q3-13 Q1-16 Defaults Foreclosures Source: DataQuick Defaults and Foreclosures 0 0 1 1 1 1 Units (000s)Q1-00 Q1-05 Q1-10 Q1-15 Total Sales Less Foreclosures Source: DataQuick Sales Less Foreclosures 0 5 10 15 20 Q1-95 Q1-00 Q1-05 Q1-10 Q1-15 Source: California Assocation of Realators Months Supply Sales volumes subdued as market supply remains tight San Luis Obispo County Home Sales Outlook The median price for an exist- ing single-family home in the City stood at $707,000 as of the sec- ond quarter of 2016, a 14.5% in- crease over the same time a year prior. This was on top of a 16.8 % year-over-year increase in the first quarter of 2016. These strong gains yielded an overall 15.7% rate of growth for the first half of 2016, a marked improvement over the flat growth during 2015. In the coming fiscal year Beacon Economics ex- pectshomepricegrowthtoremain strong, growing at or near dou- ble digits. Historically low mort- gage rates and strong demand will continue to put upward pressure on home prices. Low market inventories will also contributetohomepricegrowthin the 2016–17 fiscal year, as the tight supply of homes for sale continues to be a stumbling block for would- be homeowners. According to the California Association of Realtors, in August 2016 the existing supply of homes on the market in San Luis Obispo County would be exhausted in4.4monthsatthecurrentpaceof sales. This was hardly an improve- ment over the 4.3 average reading over the preceding twelve months, and far below the long run average of six months’ supply. The tight supply is evident in the most recent data on existing home sales as well, but sales volumes are expected to pick up in the near term as more home owners are enticed by higher prices to sell and move up. Sales have thus fare trended sideway for the most part, with positive and negative growth the last few years. Sales of existing single family homes were in the second quarter of 2016 were 10.4% higher than the prior year, but in the first half of 2016 sales were down by 9.0%. City of San Luis Obispo Revenue Forecast 3 17.j Packet Pg. 316 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Beacon Economics 0 50 100 150 Q1-00 Q1-05 Q1-10 Q1-15 Multi-Family Single-Family Source: Construction Industry Research Board Residential Permits 4 6 8 10 12 Values ($ Millions)Q1-00 Q1-05 Q1-10 Q1-15 Source: Construction Industry Research Board Non-Residential Permits 5 6 7 8 Jan-00 Jan-05 Jan-10 Jan-15 Source: California Employment Development Department San Luis Obispo County Construction Employment 70 80 90 100 110 120 Taxable Sales ($ Millions)Q1-09 Q3-10 Q1-12 Q3-13 Q1-15 Q3-16 Source: HdL Companies San Luis Obispo County Construction Spending Building activity holding steady San Luis Obispo Construction TrendsNew construction is anticipated to make a steady contribution to AV growth in the near term as per- mitting activity for both residen- tial and nonresidential construc- tion show new structures are in the pipeline. According to the Con- structionIndustryResearchBoard, there were 132 new residential units permitted in the 2015-16 fis- cal year. This was down from the 302 units permitted in 2014-15, but nevertheless points toward new structurestoaddtotheexistingas- sessed value base. Nonresidential permitting activity has picked up inthelastyearaspermitvaluesfor the 2015–16 fiscal year increased 11.6% over 2014–15 levels. Other commercial indicators continue to trend favorably. Rents are still rising across all property types in the broader San Luis Obispo County, and vacancy rates are falling or holding steady at healthy levels. These trends point to a steady demand, which will help maintain upward pressure on commercial property values for structures that do not change ownership. Finally, the California Consumer Price Index (CPI) has been trending favorably from the standpoint of growth in region’s AV base. From October 2014 to October 2015, the California CPI grew by 1.5%, capping growth in properties notsubjecttoreassessmentatthatlevel.Sincethen,however,year-over-yeargrowthhastrendedhigherthan2%as thedeclineinenergypricesrecedesintothepastandcoreinflationintheStateremainsfirm.Ifthistrendcontinues throughtheendof2016,itwillallowpropertiesnotsubjecttoreassessmenttogrowattheupperlimitofProposition 13 restrictions. Consumer and Business Spending Driven Revenues The local economy is expected to exhibit positive growth over the next five fiscal years, which will yield steady increases in tax revenues associated with consumer and business spending. One clear sign of strength in the local economy is that job growth in the region has remained on a steady upward trajectory and has been setting record highemploymentlevelsvirtuallyeverymonthsince.AsofSeptember2016,nonfarmemploymentinSanLuisObispo County stood at 117.7 thousand, a 2.3% increase over the same month a year prior. Notably, this pace of job creation was on par with nonfarm employment in the state overall, which grew by 2.3% over the same time period. The Leisure and Hospitality industry has been the largest contributor to overall job growth in the County over the last year. As of September 2016, this industry added over 700 new jobs to company payrolls compared to the same time a year prior, a 4.1% increase, and represented 27.2% of the net increase across all nonfarm industries. The Edu- cation and Health Care industry also posted strong job growth, adding over 550 new jobs year-over-year for an 3.9% City of San Luis Obispo Revenue Forecast 4 17.j Packet Pg. 317 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Beacon Economics increase to company payrolls. This is a strong indication of a vibrant regional economy as San Luis Obispo continues to one of the top tourist destinations for residents of both Southern and Northern California. 60 80 100 120 140 Employees (000s)Q1-90 Q1-00 Q1-10 Q1-20 Actual Forecast Source: Forecast by Beacon Economics Nonfarm Employment 2 4 6 8 10 %Q1-90 Q1-00 Q1-10 Q1-20 Actual Forecast Source: Forecast by Beacon Economics Unemployment Rate -420 95 96 186 249 263 427 499 569 735 -500 0 500 1,000 Professional/Business Information Financial Activities Manufacturing Trade/Logistics Government Other Services NR/Construction Education/Health Leisure/Hospitality Industry Job Creation -3.3 6.3 2.3 2.6 1.2 1.1 7.4 7.5 3.9 4.1 -5 0 5 10 Industry Employment Growth Source: California Employment Development Department Employment levels reaching new record highs San Luis Obispo County Labor Market 500 1,000 1,500 2,000 $ MillionQ1-90 Q1-00 Q1-10 Q1-20 Actual Forecast Source: Forecast by Beacon Economics Taxable Sales -0.4 3.6 0.2 -14.1 0.3 -7.3 1.1 5.7 -15 -10 -5 0 5 Total Restaurants and Hotels General Consumer Goods Fuel and Service Stations Food and Drugs Business and Industry Building and Construction Autos and Transportation Source: HdL Companies Taxable Receipts Growth 5,000 10,000 15,000 20,000 $ BillionQ1-90 Q1-00 Q1-10 Q1-20 Actual Forecast Source: Forecast by Beacon Economics Personal Income 220,000 240,000 260,000 280,000 300,000 Q1-90 Q1-00 Q1-10 Q1-20 Actual Forecast Source: Forecast by Beacon Economics Population Local spending remains strong San Luis Obispo County Spending and Income Hotel revenues over the last year have been robust, as evidenced by the 36.5% increase in transient oc- cupancy tax revenues from fiscal year2014-15to2015-16.Steadyim- provement in the national, state, and regional economies have been a boon to the local economy has visitors enjoy all that the city has to offer. Summary Beacon Economics’ revenue fore- cast for the City of San Luis Obispo maintains an optimistic tone, and for good reason. The underlying fundamentals of the local real es- tate market are strong and are ex- pected to maintain an upward tra- jectory for the life of the forecast. Price growth is robust, sales vol- umesareholdingsteadyintheface of tight supply, and new construc- tionactivityisrunningatahealthy clip. Overall economic activity is also heading in the right direc- tion as businesses continue to hire and tourism activity in the area re- mains strong. Over the next five fiscalyears,withnothinginthelat- est data that points to trouble on theimmediatehorizon,expectpos- itive revenue growth in the City of San Luis Obispo. Although it’s not a part of the cur- rent five-year forecast, a sensitive long-run issue is the closure of the Diablo Canyon Power Plant. It has long been a part of the local economy, but it is scheduled to close in several years, with the decommissioning extending several years beyond that date. The utility has indicated that its employees City of San Luis Obispo Revenue Forecast 5 17.j Packet Pg. 318 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Beacon Economics should expect to receive severance compensation, which will cushion the blow to the local economy. But local gov- ernment agencies, communities, and businesses throughout the County also stand to lose a large source of property taxes, spending power, the utility’s charitable support, and other benefits from the plant and its workers. One of the biggest concerns for stakeholders throughout the County is that there is no definitive timeline for the closure, making it hard to plan. As the situation develops, Beacon Economics will be keeping a close eye on the closure and will continue to assess how it will affect the local economy. City of San Luis Obispo - Revenue Forecast Revenue Stream Actual Forecast FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Assessed Valuation ($000s)6,847,248,543 7,316,969,794 7,810,556,000 8,314,834,000 8,791,996,000 9,287,135,000 9,815,083,000 Growth(%)5.9 6.9 6.7 6.5 5.7 5.6 5.7 Property Tax 9,631,890 10,186,858 10,874,040 11,576,108 12,240,424 12,929,768 13,664,790 Growth(%)7.5 5.8 6.7 6.5 5.7 5.6 5.7 Utility Users Tax 5,211,207 5,413,720 5,557,909 5,766,324 6,007,247 6,287,656 6,573,414 Growth(%)-2.5 3.9 2.7 3.7 4.2 4.7 4.5 Business Tax 2,203,208 2,496,724 2,571,572 2,665,271 2,742,577 2,821,225 2,900,802 Growth(%)2.8 13.3 3.0 3.6 2.9 2.9 2.8 Transient Occupancy Tax 6,805,742 7,113,466 7,467,657 7,807,394 8,131,150 8,464,159 8,833,744 Growth(%)12.2 4.5 5.0 4.5 4.1 4.1 4.4 Taxable Sales 1,404,110,912 1,453,693,952 1,516,173,000 1,572,019,000 1,628,719,000 1,689,009,000 1,750,598,000 Growth(%)3.0 3.5 4.3 3.7 3.6 3.7 3.6 Sales Tax 15,272,683 17,498,218 18,250,283 18,922,505 19,605,007 20,330,722 21,072,073 Growth(%)-0.9 14.6 4.3 3.7 3.6 3.7 3.6 Measure Y 7,038,956 7,047,174 7,350,058 7,620,787 7,895,656 8,187,928 8,486,497 Growth(%)3.9 0.1 4.3 3.7 3.6 3.7 3.6 Proposition 172 409,590 405,066 421,390 442,255 466,726 493,747 522,632 Growth(%)4.6 -1.1 4.0 5.0 5.5 5.8 5.9 Building Permit Valuation 117,738,400 89,598,922 74,781,620 69,916,780 66,413,100 65,909,460 69,783,160 Growth(%)108.0 -23.9 -16.5 -6.5 -5.0 -0.8 5.9 Source: Forecast by Beacon Economics City of San Luis Obispo Revenue Forecast 6 17.j Packet Pg. 319 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Beacon Economics About Beacon Economics Beacon Economics, LLC is a leading provider of economic research, forecasting, industry analysis, and data services. Bydeliveringindependent,rigorousanalysiswegiveourclientstheknowledgetheyneedtomaketherightstrategic decisions about investment, growth, revenue, and policy. Learn more at www.BeaconEcon.com. Services Contacts Economic and revenue forecasting Economic impact analysis Regional economic analysis Economic policy analysis Real estate market analysis Industry and market analysis EB-5 Economic analysis Public Speaking Expert Testimony Sherif Hanna Managing Partner (424) 646-4656 Sherif@BeaconEcon.com Victoria Pike Bond Director of Communications (415) 457-6030 Victoria@BeaconEcon.com Rick Smith Director of Business Development (858) 997-1834 Rick@BeaconEcon.com City of San Luis Obispo Revenue Forecast 7 17.j Packet Pg. 320 Attachment: j - Economic Outlook 2017-22 [Revision 2] (1537 : 2017-19 Financial Plan Budget Foundation) Page intentionally left blank. Meeting Date: 12/13/2016 FROM: Carrie Mattingly, Utilities Director Prepared By: Aaron Floyd, Water Division Manager Jennifer Metz, Utilities Projects Manger Mychal Boerman, Water Resources Program Manager SUBJECT: 2016 WATER RESOURCES STATUS REPORT RECOMMENDATION Receive and file the 2016 Water Resources Status Report. DISCUSSION The 2016 Water Resources Status Report (Attachment A) provides an overview and update on the City’s water resources. These reports have been provided to the City Council and community since 1985 and serve to both inform future policy decisions as well as provide historical documentation of water conditions. Similar to the 2015 Water Resources Status Report, the water year reporting period extends from October 1 through September 30. The water year is designated by the calendar year in which it ends. This report covers water year 2016. 2016 Water Year Summary Total Water Use 4,730.53 acre feet Potable Water Use 4,528.61 acre feet Recycled Water Use 201.92 acre feet 2016 Population 46,117 residents Per Capita Demand Per Day (Potable Only) 87.67 gallons Water Projection Model (as of September 30, 2016) >5 years of supply Water Resource Availability: Salinas & Whale Rock Reservoirs (Safe Annual Yield) 6,940 acre feet Nacimiento Reservoir (Dependable Yield) 5,482 acre feet Recycled Water (from 2015) 187 acre feet Siltation (from 2010 to 2060) (500) acre feet Total Water Resource Availability: 12,109 acre feet Water Supply Accounting: Primary Water Supply 7,496 acre feet Reliability Reserve 1,499 acre feet Secondary Water Supply 3,114 acre feet Total Water Supply: 12,109 acre feet 18 Packet Pg. 321 2015 Water Year Reduction 2016 Water Year Reduction Total Water Year Reduction from 2013 Usage 16% 21% Notes: The reduction represents the total water reduction achieved in the Water Year from water usage in 2013. The City’s mandatory 12 percent reduction went into effect in June 2015, so were not in place during the full 2015 Water Year. Data does not include recycled water. Source: City of San Luis Obispo, 2016. Water availability for 2016 is 12,109 acre feet, an increase of 2,124 acre feet over 2015 due to the full allocation of Nacimiento Reservoir and increased recycled water usage. Water supply accounting reflects the General Plan, Water and Wastewater Management Element policies A 5.2.2 through A 5.2.4, adopted by the City Council in June 2016. Drought Update The statewide drought emergency continued during the 2016 Water Year, with the drought now into its fifth year (2011 to 2016). State drought regulations that began in 2014, were expanded in 2015, and continued through the 2016 Water Year. On May 9, 2016, the Governor issued an Executive Order that directed the State Water Resources Control Board to adjust and extend its emergency water conservation regulations through the end of January 2017 in recognition of the differing water supply conditions for many communities, and to develop proposed emergency water restrictions for 2017 if the drought persists. Following the Governor’s Executive Order in April 2015, the State Water Board adopted mandatory statewide reductions with the City’s required reduction at 12 percent. The community continues to do an outstanding job in reducing water consumption in response to the new regulations. The City is on target to meet State requirements, as shown in the table below, achieving an average 21 percent reduction in the 2016 Water Year over 2013 water usage. Efforts made by the City in 2016 to encourage water conservation through active outreach have included hosting a community water forum, offering rebates and free water saving fixtures, and numerous site visits to assist concerned residents. The Governor’s latest drought-related Executive Order (B-37-16) established a new water use efficiency framework for California by aiming to “Make Conservation a California Way of Life.” The 2016 Executive Order bolsters the state’s drought resilience and preparedness by establishing longer-term water conservation measures that include:  Permanent monthly water use reporting,  New urban water use targets,  Reducing system water loss,  Eliminating clearly wasteful practices, and  Strengthening urban drought contingency plans. 18 Packet Pg. 322 These updated measures aim to not only reduce immediate water use but to establish a long-term change in the way Californians think about water. Recycled Water Use of recycled water for irrigation and construction water totaled 201.92 acre feet for the 2016 Water Year, up from 168 acre feet in 2015. Approximately 17 acre feet of this usage was for construction water. A total of 44 construction water permits were sold during the 2015-16 fiscal year, with 28 permits sold so far during the 2016-17 fiscal year. Corporation Yard Well As part of the overall water management strategy adopted by City Council in June 2015, the City’s Corporation Yard well, located on Prado Road, was brought under a permit system. This change generated 40 permit users in 2015, with another 40 permits issued so far in 2016. Water Modeling The City uses two models to assist in water management. The first is the Water Projection Model which is used to assess the City’s current water availability. This model was updat ed to include climate data from the 2012-14-time period to more accurately reflect the impacts of the drought. Based on this analysis, the model indicated the City has a greater than five year supply of water. The second model used is the Safe Annual Yield Model. This model defines the annual amount of water available from Salinas and Whale Rock Reservoirs when operated in a coordinated manner. The current combined Safe Annual Yield for Salinas and Whale Rock Reservoirs is 6,940 acre feet per year. Since it is unknown how long the drought will last, model updates used hypothetical precipitation scenarios for the upcoming rain season. The results of these model runs showed that a relatively normal rainfall year would not impact the Safe Annual Yield; however, a continued drought will negatively impact the safe annual yield. This figure may need to be lowered after the upcoming winter rainfall if the Central Coast receives a less than normal amount of precipitation. Water Resource Project Outlook for 2017 The City is updating the 2004 Water Reuse Master Plan which is scheduled to be complete in 2017. This plan will serve to inform the City as to the amount of recycled water that can be produced as well as the best utilization of this resource. The City is also reviewing the rate it charges for recycled water, which has been set at 90 percent of the City’s potable rate since the program’s inception. Staff will return to Council in March 2017 with the Sustainable Groundwater Management Act (SGMA). This new State law will initially require the formation of Groundwater Sustainability Agencies (GSAs) by June 2017. These GSAs will then work to create a plan to manage the groundwater resources of the San Luis Obispo basin. ENVIRONMENTAL REVIEW The Water Resource Status Report is not a “project” under the California Environmental Quality Act (CEQA), because the action does not involve any commitment to a specific project which 18 Packet Pg. 323 may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378. FISCAL IMPACT There are no fiscal impacts associated with the recommended action. Attachments: a - 2016 Water Resources Status Report 18 Packet Pg. 324 CITY OF SAN LUIS OBISPO 2016 Water Resources Status Report This Report Covers October 1, 2015 through September 30, 2016 Whale Rock Reservoir. 2016 Photo credit: City of San Luis Obispo PREPARED BY: Jennifer Metz, Utilities Projects Manager Aaron Floyd, Utilities Deputy Director-Water Mychal Boerman, Water Resources Program Manager 18.a Packet Pg. 325 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 2 The City of San Luis Obispo 2016 Water Resources Status Report includes water production and water consumption data for October 1, 2015 through September 30, 2016 and was prepared in accordance with the General Plan, Water and Wastewater Management Element, Policy A5.3.1. The reporting period corresponds to the Water Year (October 1 through September 30), the 12-month period for which precipitation totals are measured. The water year is designated by the calendar year in which it ends. This report covers Water Year 2016. The Report is organized as follows: I. Drought Update II. Water Policy Update III. Water Supply IV. Water Demand V. Water Resource Availability VI. Water Supply Accounting VII. Water Demand Management I. DROUGHT UPDATE The statewide drought emergency continued during the 2016 Water Year, with the drought now into its fifth year during 2016. State drought regulations that began in 2014, were expanded in 2015, and continued through the 2016 Water Year. On May 9, 2016, the Governor issued an Executive Order that directed the State Water Resources Control Board to adjust and extend its emergency water conservation regulations through the end of January 2017 in recognition of the differing water supply conditions for many communities, and to develop proposed emergency water restrictions for 2017 if the drought persists. The Governor’s latest drought-related Executive Order (B-37-16) established a new water use efficiency framework for California by aiming to “Make Conservation a California Way of Life.” 18.a Packet Pg. 326 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 3 The 2016 Executive Order bolsters the state’s drought resilience and preparedness by establishing longer- term water conservation measures that include:  Permanent monthly water use reporting,  New urban water use targets,  Reducing system water loss,  Eliminating clearly wasteful practices, and  Strengthening urban drought contingency plans. These updated measures aim to not only reduce immediate water use but to establish a long-term change in the way Californians think about water. LOCAL RESPONSE The drought brought about unprecedented regulatory action from the State of California which required a mandatory 12 percent reduction in City water use when compared with 2013 water use. To comply with this mandate, the City Council adopted a drought response strategy in June 2015. This strategy is still in place and includes the following:  Adoption of a resolution declaring a drought emergency;  Adoption of a resolution to defer new landscape installation or the use of modified landscape plans during the drought emergency;  Adoption of an ordinance amending Chapter 13.07 of the City’s Municipal Code to include two- day-a-week and time-of-day restrictions for outdoor watering;  Approval of an incentive program for high efficiency toilets and washing machines; and  Adoption of a resolution establishing a permit fee for the use of the Corporation Yard groundwater well. The community continues to do an outstanding job in reducing water consumption in response to the regulations. The City is on target to meet State requirements, as shown in the table below, achieving an average 21 percent reduction in the 2016 Water Year over 2013 water usage. 2015 Water Year Reduction 2016 Water Year Reduction Total Water Year Reduction from 2013 Usage 16% 21% Note: The reduction represents the total water reduction achieved in the Water Year from water usage in 2013. The City’s mandatory 12 percent reduction went into effect in June 2015, so were not in place during the full 2015 Water Year. Data does not include recycled water. Source: City of San Luis Obispo, 2016. 18.a Packet Pg. 327 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 4 The City’s enforcement strategy has relied on active enforcement of water waste prohibitions, with a focus on providing information and resources to the public in order to encourage the correction of existing violations and to encourage voluntary compliance. During Water Year 2016, City staff issued 528 formal and informal violation notifications. Of the 528 violations recorded, only 55 were repeat violations with only 12 total properties being contacted more than two times throughout the course of the year. Violations throughout the year were predominantly related to issues with irrigation systems. 281 of the violations recorded were related to water runoff from irrigation systems while another 228 violations were due to irrigating on a prohibited day or during prohibited hours. The remaining 20 violations were related to issues such as watering within 48-hours of measurable rainfall, washing a vehicle without a shutoff nozzle, and using a hose to wash down a driveway or sidewalk. Given the strong relationship between irrigation and water waste violations, most violations occur during peak irrigation season (from May through October) and become nearly non-existent during winter months. As shown in the Violations Heat Map, there are several areas of town where violations occur most frequently. Given advanced reporting and tracking efforts, efforts are focused on areas of town with high likelihood of violations. When violations occur they are geocoded and permanently recorded with information such as type of violation, customer contact method, and outcome of contact. This recording of data helps track frequency of violation and if response to violations needs to be escalated due to repeated violations. Prohibited Day/Time 228 Water Runoff 281 Other Violations 20 Violation Types 280 Phone Calls 192 Door Tags 54 In- Person 2 Notice of Violations Issued Violation Response Methods 18.a Packet Pg. 328 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 5 Water Waste Violations Heat Map Source: City of San Luis Obispo, 2016. The Water Waste Violations Heat Map shows locations in the City that experienced the highest number of water waste violations during the 2016 Water Year. These violations include watering within 48-hours of measurable rainfall, washing a vehicle without a shutoff nozzle, and using a hose to wash down a driveway or sidewalk. 18.a Packet Pg. 329 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 6 II. WATER POLICY UPDATE The City’s guiding water policy document for water resource planning is the General Plan Water and Wastewater Management Element (WWME). The WWME was updated on June 16, 2016 along with the 2015 Urban Water Management Plan. As part of the 2016 update, the City changed the factor used in water supply accounting and demand projections to use the per capita potable water use rate allowed under Senate Bill X7-7 (Water Conservation Act of 2009) of 117 gallons per capita per day (gpcd). The updated policy language reads as follows: The City will utilize the per capita water use rate allowed by SB X7-7 for projecting future potable water demand established as 117 gallons per capita per day. Prior to this update, the City used a water use rate based on a 10-year running average of gpcd. Using 117 gpcd is a more conservative approach as a 10-year average can be influenced by drought years where the City can experience a significant reduction in potable water demand. In June of 2016, the City updated its Urban Water Management Plan. This update is required by the State of California Urban Water Management Planning Act to occur every five years. The preparation of the 2015 Urban Water Management Plan (2015 Plan) was unique in that it took place during unprecedented drought conditions statewide. As part of the 2015 Plan, changes were made to the City’s Water Shortage Contingency Plan. Water shortage contingency planning allows for the City to be prepared for and respond to water shortages such as a drought or a catastrophic supply interruption such as a break in a transmission pipeline. To provide more time to respond to water shortages, a six-staged demand management response was included in the plan with a “Monitoring” stage in place at all times. The update to the Water Shortage Contingency Plan in the 2015 Urban Water Management Plan includes implementation of mandatory water conservation measures when the City’s water supplies are projected to last five years or less. This change from the prior plan’s three year or less plan allows for more time to incrementally implement water shortage response strategies. The policy language is as follows: Mandatory water conservation measures as described in the City’s Water Shortage Contingency Plan will be implemented when the City's water supplies are projected to last five years or less. III. WATER SUPPLY Per WWME Policy A2.2.1, the City uses multiple water sources to meet its water supply needs. The city has four primary water supply sources including Whale Rock Reservoir, Salinas Reservoir, Nacimiento Reservoir, and recycled water (for landscape irrigation and construction water), with groundwater serving as a fifth supplemental source. The supply per source for Water Year 2016 (October 1, 2015 to September 30, 2016) is summarized below. City of San Luis Obispo Water Supply Sources  Nacimiento Reservoir  Whale Rock Reservoir  Recycled Water  Salinas Reservoir  Groundwater 18.a Packet Pg. 330 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 7 2016 City Water Supply by Source (Acre Feet) Nacimiento Reservoir Whale Rock Reservoir 2 Recycled Water Salinas Reservoir Groundwater 3 Total City Water Demand 3,834.5 685.92 201.92 8.19 0 4,730.53 81.06% 14.50% 4.27% 0.17% 0 % 100% Notes: 1. All Values are rounded. 2. Water delivered to Cal Poly State University is excluded from the City’s water demand. 3. Groundwater was not used for potable purposes during the 2016 Water Year. NACIMIENTO RESERVOIR Water deliveries to the City of San Luis Obispo from Nacimiento Reservoir began in January 2011. San Luis Obispo County operates and maintains the delivery of water from Nacimiento Reservoir to participating agencies (currently the cities of Paso Robles and San Luis Obispo, Atascadero Mutual Water Company, Templeton Community Services District, County Service Area 10A [Cayucos], Santa Margarita Ranch, and Bella Vista Mobile Home Park). The Nacimiento Project Commission provides oversight to project operations, maintenance, and the project budget. The Commission is made up of representatives from each of the four agencies’ governing boards and a County Representative who is a member of the County Board of Supervisors which also sits as the Board of Directors for the Flood Control District. In March 2016, the City Council approved the addition of 2,102 afy from Nacimiento Reservoir to the City’s secondary water supply, referred to as the “full allocation” of Nacimiento. This addition brought the City’s contractual right to Nacimiento Reservoir from 3380 afy to 5,482 afy. The City uses secondary water supplies to meet short-term water supply losses due to events such as drought, pipeline maintenance, and repair of infrastructure. With uncertainty of future climatic conditions, regulation and aging infrastructure, the additional supply of water from Nacimiento Reservoir to the City’s portfolio reduces pressure on use of water supplies in Whale Rock and Salinas reservoirs serving to extend these stored supplies during future critical water shortage periods. Nacimiento Reservoir, 2016. Photo credit: City of San Luis Obispo. 18.a Packet Pg. 331 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 8 Since the full allocation was approved in March 2016 and the budget amen dment to cover the expense associated with the additional pumping costs was approved in June , the City has significantly increased the volume of water it utilized from Nacimiento to serve the community’s water demand. During the 2016 Water Year, over 81 percent of the City’s total water demand was met by Nacimiento Reservoir. The City utilized twice as much water from Nacimiento Reservoir during the 2016 Water Year than the prior year. SALINAS & WHALE ROCK RESERVOIRS Salinas and Whale Rock Reservoirs served as the City’s primary water supplies for over 50 years. The City pays the County of San Luis Obispo Flood Control and Water Conservation District (County) to provide oversight, operations, and maintenance of the Salinas Dam and related water delivery facilities. The City provides the oversight, operations, and maintenance of the Whale Rock Reservoir for the benefit of the Whale Rock Commission, a joint powers agency made up of Cal Poly State University, California Men’s Colony, and the City. During the 2016 Water Year, the City utilized a total of 694.11 acre feet from Salinas and Whale Rock reservoirs. RECYCLED WATER For the 2016 Water Year, the City delivered 202 acre feet of recycled water, up from 168 acre feet for the 2015 Water Year. The biggest increase in recycled water use during the 2016 Water Year was construction water. Total construction water use in the 2016 Water Year was 20 acre feet, up from 10 acre feet during the 2015 water year. The City has had a Construction Water Permit Program since 2010. 5,285 5,541 5,892 4,988 4,731 2,181 1,502 1,247 1,891 3,835 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2012 2013 2014 2015 2016 Utilization of Water Supply from Nacimiento Reservoir Total City Water Demand (in acre feet)Acre Feet utilized from Nacimiento Reservoir 18.a Packet Pg. 332 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 9 The design phase for the City’s Water Resource Recovery Facility (WRRF) Project is underway in 2016 which is planned to maximize recycled water production. The upgrade will enable the City to consider potable reuse, part of a One Water concept, in the future. The City is currently updating to the 2004 Water Reuse Master Plan which is scheduled to be complete in 2017. The City is also reviewing the rate it charges for recycled water, which has been set at 90 percent of the City’s potable rate since the program’s inception. GROUNDWATER The City transitioned from utilizing groundwater for potable purposes with the last withdrawal occurring in April 2015. The City’s groundwater wells remain in an operable, stand- by position should the use of groundwater be required . Other existing well casings are being revitalized to provide greater drought resiliency. The City is also working with a hydrogeologist to site a future well field for a potential groundwater program expansion and for siting of the withdrawal of highly treated wastewater for an indirect potable reuse system. With the emergency drought declaration in 2015, the City established a permit fee and procedures for use of the Corporation Yard groundwater well. The program was started in recognition of the drought and the importance of the groundwater resources and the management of this resource to community and others within the San Luis Groundwater Basin. During the 2016 water year, that permit program entered its second year and has 40 participants. Non-potable well water is also used at the Laguna Lake Golf Course for landscape irrigation. WATER MODELING The City performs water planning through the use of different models. The Water Projection Model, or Wet Water Model, is used to inform the amount of water the City has available during the water year. This model inputs include an annual one percent population increases, current total water demand (in gallons per capita per day), current levels of Salinas and Whale Rock Reservoir, contractual water received from Nacimiento Reservoir, and climate data associated with each reservoir in terms of lack of precipitation and increase in evaporation for the worst years of the drought (2012-14). These drought-year climate impacts are assumed for every year moving forward, even in more “normal” years such as 2015 and 2016. With this model, the City is able to analyze the effects of more severe climatic conditions, such as increased evaporation and decreased precipitation, in our stored water reservoirs. The upgrade of the Water Resource Recovery Facility will enable the City to consider potable reuse in the future, part of a One Water concept. 18.a Packet Pg. 333 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 10 In March 2016, the model was updated to include the additional water supply from the full allocation of Nacimiento Reservoir. While the last model run shows the City having more than five years of available water, the uncertainty of when the drought will end and what impact future climate change may have still remain. IV. WATER DEMAND During Water Year 2016, over 63 percent of total water use in the City was to support single and multi-family residential uses. Historical water use is summarized below, as well as corresponding population, per capita use rate, and precipitation. The 2016 per capita water use was 91.6 gallons per capita per day (gpcd). Based on WWME policies, the City uses 117 gpcd to project water required to serve build- out population. Population, Water Use & Rainfall Year Population Total Water Use (acre feet) Per Capita (gpcd) Rainfall1,2,3 (inches) 2007 44,433 6,493 130.5 12.7 2008 44,579 6,359 127.3 18.1 2009 44,829 6,134 122.2 18.9 2010 44,948 5,489 109.0 36.0 2011 45,418 5,285 103.9 18.9 2012 45,308 5,541 109.2 21.5 2013 45,541 5,892 115.5 3.8 2014 45,473 5,524 108.5 14.2 2015 45,802 4,990 97.3 11.8 2016 46,117 4 4,731 91.6 17.8 Notes: 1. Rai nfa ll amou nts for 2005 –2012 cal endar year source: Cal Poly CIMIS W eather Statio n. 2. Rai nfa ll amou nt fo r calendar year 2013-2015: SLO Reservoir. 3. Data for 2007 through 2014 presents calendar year rainfall data. 2015 and 2016 rainfall data covers the Water Year (October through September). 4. http://www.dof.ca.gov/Forecasting/Demographics/Estimates/e -1/ 41.17% 22.41% 24.98% 6.73%4.31%0.40% Water Consumption by Land Use Type Single Family Multi Family Non-Residential Irrigation (Potable) Irrigation (Recycled)Construction Water (Recycled) 18.a Packet Pg. 334 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 11 With the City’s multi-source water supply, its reservoirs are in different watersheds, therefore rainfall throughout San Luis Obispo County can benefit the City. Average rainfall at various sites within San Luis Obispo is described below. Location Annual Average Rainfall (in inches) 2016 Water Year Total Rainfall (in inches) Rock Butte 39 26.89 Hwy 46 and W 7 Mile Road in Cambria, CA 30 19.93 SLO Reservoir 25 17.80 Salinas Dam 23 13.46 Source: http://www.slocountywater.org/site/Water%20Resources/Data/maps/precipitation-real-time.htm V. WATER RESOURCE AVAILABILITY The following table summarizes the Water Resource Availability based on WWME Section 3. Water availability for 2016 is 12,109 acre feet, an increase of 2,124 acre feet over 2015 due to the full allocation of Nacimiento Reservoir and increased recycled water usage. 2016 Water Resource Availability Water Resource Acre Feet Description 2016 Increase Salinas & Whale Rock Reservoirs 6,940 Safe Annual Yield 1 - Nacimiento Reservoir 5,482 Dependable Yield 2 2,102 acre feet Recycled Water 187 2015 Annual Usage 3 22 acre feet Siltation from 2010 to 2060 (500) WWME Policy A 4.2.2 4 - 12,109 2016 Annual Availability 2,124 acre feet NOTES: 1. Safe Annual Yield determined from computer model, which accounts for siltation loss through 2010 (per WWME Policy A 4.2.1). 2. Dependable Yield is the contractual amount of water the City has rights to from Nacimiento Reservoir. 3. The quantity of recycled water included is the actual prior year’s recycled water usage (calendar year 2015) per WWME Policy A 7.2.2. 4. Reservoir siltation is a natural occurrence that reduces storage capacity over long periods, resulting in the reduction of safe annual yield. Source: City of San Luis Obispo, 2015. View of San Luis Obispo from Tassajara Peak. 18.a Packet Pg. 335 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 12 VI. WATER SUPPLY ACCOUNTING Per WWME Section 5, the City accounts for water supplies necessary to meet three specific community needs:  Primary water supply  Reliability reserve  Secondary water supply The City’s primary water supply is defined as the amount of water needed to serve the build-out population identified in the General Plan, Land Use Element (2014). Table 3 in the Land Use Element identifies an urban reserve capacity of 57,200 people. The quantity of water needed for the primary water supply is calculated per WWME Policy A 5.2.2, using 117 gallons per capita per day (gpcd). The reliability reserve provides a buffer for future unforeseen or unpredictable long-term impacts to the City’s water supply. The quantity of water for the reliability reserve is established using 20 percent of the existing City population (46,117, 2016 population) at 117 gpcd, thus the reliability reserve will increase over time as population increases. The reliability reserve concept is included in the City’s Charter (Section 909) which identifies that the water may not be used to serve future development, and is defined per WWME Policy A 5.2.3. The secondary water supply is the amount of water remaining from the City’s available water resources above those needed to meet the primary water supply a nd reliability reserve. The secondary supply is identified to meet peak water demand periods or short -term loss of City water supply sources, per WWME Policy A 5.2.4. Water supply accounting is summarized in the table below . 2016 Water Supply Accounting (acre feet) Total Primary Water Supply Reliability Reserve Secondary Water Supply 12,109 7,496 1,499 3,114 Primary Water Supply = 117 gpcd x City Build-out Population = 117 gpcd x 57,200 x 365 day/year x Acre-Ft/325,853 gal 7,496 Acre-Ft/year Reliability Reserve = 117 gpcd x 2015 City Population x 20% = 117 gpcd x 46,117 x 365 day/year x Acre-Ft/325,853 gal x 20% 1,499 Acre-Ft/year Secondary Water Supply = Current Annual Availability – Primary Water Supply – Reliability Reserve = 12,109 Acre-Ft/year A – 7,496 Acre- Ft/year – 1,499 Acre-Ft/year 3,114 Acre-Ft/year A 2016 Annual Availability 18.a Packet Pg. 336 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 13 VII. WATER DEMAND MANAGEMENT The City’s water conservation program is an integral part of its overall water management strategy. In the late 1980’s, the City implemented effective water efficiency programs and policies that allowed for continued community growth and economic development during water- constrained periods. Through strong conservation efforts, the community has reduced its annual average per capita water use from over 180 gallons in 1987 to 91.6 for the 2016 Water Year. With the lack of local drought relief from El Nino, the City continued its message related to water conservation while much of the media was declaring the drought “over” due to high quantities of rainfall in the northern half of the state. Along with its continued face-to-face contact with customers, the City continued to implement water conservation rebate programs, school education programs, and increased public outreach related to the ongoing drought. The outreach program currently consists of messaging on the City’s social media platforms and website along with traditional printed media such as the quarterly Resource Newsletter. In order to reach all local demographics, City staff diversified outreach efforts by attending local events such as Farmers Market, the SLO Home Expo, the Disaster Preparedness Expo, and the Community Water Forum. Adding to traditional media outlets, staff was interviewed on local radio, advertised on broadcast media, and created a video explaining the history of the City’s water resource and conservation programs. 18.a Packet Pg. 337 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) City of San Luis Obispo 2016 Water Resources Status Report 14 REGIONAL WATER RESOURCE PLANNING Beyond the involvement in the Nacimiento Water Project, the City continues to participate as a member of the Water Resources Advisory Council and Regional Water Management Group, which promotes collaborative, integrated management of water resources within San Luis Obispo County and provides policy recommendations to the County Board of Supervisors. In addition, the City participates in the regional water conservation group Partners in Water Conservation. The Sustainable Groundwater Management Act (SGMA) is a statewide policy that empowers local agencies to adopt groundwater management plans that relate to the needs and resources of their communities. In the future, the City sees groundwater continuing to play an important and usefu l role in the balancing of its overall water supply portfolio. Associated with SGMA is the requirement to form a Groundwater Sustainability Agency by mid-2017 and create a Groundwater Sustainability Plan by 2022. 18.a Packet Pg. 338 Attachment: a - 2016 Water Resources Status Report [Revision 3] (1527 : 2016 Water Resources Status Report) Meeting Date: 12/13/2016 FROM: Shelly Stanwyck, Parks and Recreation Director Prepared By: Melissa C. Mudgett, Parks and Recreation Manager SUBJECT: ADOPTION OF THE CITY OF SAN LUIS OBISPO’S PUBLIC ART MASTER PLAN RECOMMENDATION As recommended by the Parks and Recreation Commission (PRC), adopt the City of San Luis Obispo’s Public Art Master Plan. REPORT-IN-BRIEF The proposed City of San Luis Obispo Public Art Master Plan (“Master Plan”) was developed over a year-long series of public engagement opportunities and feedback about the desires and expectations of the community for the City’s Public Art program. The Master Plan is reflective of the community’s input and identifies five major goals which serve as a roadmap for the sustainability of the City’s Public Art collection and future expansion. The Master Plan recommends short, medium, and long-term implementation phases over ten years. The short- term series of activities focus on addressing maintenance of the City’s Public Art collection and elevating awareness of the program through the expansion of current temporary Public Art projects and with the integration of cost-effective functional art. DISCUSSION Background In 1990, the City Council established and funded a Public Art program for the City of San Luis Obispo. Twenty-six years later, the City enjoys a robust Public Art program with 76 Public Art pieces in its collection of both temporary and permanent Public Art. Over a year ago, the City embarked on creating its first ever Public Art Master Plan as it is both the City’s best practice and an industry standard to develop master planning documents that articulate how programs can grow and continue to be responsive to the community’s needs, wants and desires. In the summer of 2015, following extensive consultant interviews, Designing Local of Columbus, Ohio was selected to lead the City through this planning effort. The Public Art Master Plan’s focus is on enhancing the existing Public Art program while looking forward to its future. In a City that prides itself on being visionary and innovative, the Master Plan results in a clear vision for the future placement and nature of Public Art and serves as a guide for the development of new projects and dynamic programs. How the Public Art Master Plan Was Developed To help guide this planning process, a review team consisting of City staff in the Parks and Recreation and Public Works departments as well as the local non-profits art organization (Arts Obispo) was established. The review team began with the selection of the consultant for the 19 Packet Pg. 339 development of the Master Plan. Designing Local’s expertise lay in the public engagement opportunities which were critical in the community engagement required for the development of this plan. To set the stage, the team provided extensive data for the consultant, shared current policy documents, discussed program structures and existing partnerships, reviewed the process for stakeholder engagement, and assessed the current funding model. The team has assisted the consultant in coordinating multiple public engagement opportunities with residents and in reviewing plan drafts. The community’s feedback has been collected throughout this process and incorporated into the proposed Plan. Public Engagement During Public Art Master Development In conducting the public outreach and engagement for the proposed Public Art Master Plan, staff followed the City’s adopted Public Engagement and Notification “PEN” Manual. The outreach strategy for public input on this Plan was collaborative in nature and encouraged the public’s input through a variety of ways. Input was gathered from July 2015 to May 2016 from internal and external stakeholders. More than 400+ individuals participated in the multiple public meetings, interviews, online surveys and community workshops on this topic. Stakeholders included residents, artists, developers, educators, students, families, local business owners, University staff (Cal Poly and Cuesta College, City Council, Advisory Bodies, community members and arts advocates. The City’s website based survey (where comments could be input) to several Community Engagement opportunities at Farmer’s Market and local schools were very well utilized. All of this concluded with a public Community Workshop meeting of the Parks and Recreation Commission on May 4, 2016. A summary of the public engagement opportunities initiated over the past year as part of the Public Art Master Planning process is provided below. 19 Packet Pg. 340 The Parks and Recreation community workshop (a meeting of the PRC with extensive public outreach notifying the arts community, residents, and the public of the meeting) was an opportunity to review the draft Plan recommendations and provide focused discussions and feedback. Over forty people attended the workshop including residents, artists, professional advocate groups for the arts, developers, local business owners and interested community members. An “Open City Hall” survey was also provided via the City’s website for those who were unable to attend the workshop. Throughout the year-long public engagement process several themes emerged which were reiterated by participants at the Commission’s workshop. These themes are listed below and provided in greater detail in the Public Art Master Plan as Community Workshop Results, Appendix D.  Pride. There is extensive pride in San Luis Obispo’s Public Art collection.  Sustainability. There is a desire to maintain the City’s maturing Public Art collection.  Process Improvements. The process of incorporating Public Art into private development and for issuing building permits for Public Art could be steam-lined.  New Art Forms. There is support for new art types added to the City’s Public Art collection.  Enhanced Community Partnerships. The existing community partnerships in support of Public Art should be nurtured and enhanced in the future.  Make Art a Priority. There is a support for growing the Public Art program. The proposed Public Art Master Plan is reflective of the community’s feedback from these diverse public engagement opportunities. The Master Plan is realistic, relevant, and flexible with a focus on operational and programmatic priorities with goals and objectives that will serve as an effective road map for the future of Public Art in San Luis Obispo. Public Art Master Plan Integrates Existing Policy Documents The proposed Public Art Master Plan is premised on the conservation and preservation, as well as future growth, of the City’s Public Art collection. The Master Plan was written in a manner that affirms existing Public Art maintenance practices undertaken by staff, contractors, and volunteers and is consistent with existing City policies and plans. The Master Plan has 19 Packet Pg. 341 referenced and integrated existing municipal planning documents in guiding the plan’s development in a way that is reflective of the community’s needs and in accordance with established policies. Applicable policy documents reviewed include the City’s General Plan, Economic Development Strategic Plan (revised in 2015), Downtown Concept Master Plan (1993 with an update in progress) and the draft Mission Plaza Master Plan. Public Art Master Plan Highlights Central to the proposed Master Plan are its goals and objectives which lay the foundation for future actions. Five goals, as outlined below, have been identified as the best way to meet the needs and expectations of San Luis Obispo’s Public Art program. The Master Plan goals and objectives help to memorialize the City’s Public Art program and provide strategic direction for the growth and the sustainability of the program. Goals one and two are internally focused and seek to elevate the community’s awareness of the Public Art program while ensuring the current collection is properly maintained and cared for. Throughout this master planning effort, a significant amount of feedback was centered around the cumbersome review and permitting process for developers, designers, to integrate art into projects. Goal three identifies the need to the streamline current practices to encourage greater integration of art into private development. Goals four and five will identify ways to enhance and grow the Public Art program. The Public Art program can capitalize on available funding by encouraging affordable temporary semi-permanent art installations such as with the expansion of Box Art, construction site murals, or functional art (for example manhole covers, benches or bike racks serving both a functional and artistic purpose). These goals also encourage the exploration of public-private partnership opportunities such as citizen-driven funding, Federal and State grants, maximizing the use of volunteers, and the nurturing of existing partnerships with arts, education and tourism groups to leverage funding opportunities for new art pieces. 19 Packet Pg. 342 19 Packet Pg. 343 Adoption of the Public Art Master Plan will result in Phased Implementation The success of this Master Plan will be determined by the efforts of those in the arts community, city staff, and residents, to implement its goals and objectives. Short-term, medium term, and long-term implementation phases have been identified for the next ten years. It is recommended that the shorter term goals focus primarily on the most immediate and pressing needs of the City’s Public Art program. A focus on routine maintenance and minor repairs is critical in the near term. Key objectives recommended in the medium term of years three through five will focus on process improvements. New and creative funding models intended to support the growth and enhancement of the City’s Public Art program will be explored as a longer-term objective. A summary of the implementation strategies and their associated phasing is below: Next Steps Upon adoption by Council, staff will begin implementation of the immediate short-term action items with budget requests as part of the 2017-19 Financial Planning process. The short-term series of activities would include addressing maintenance of the Public Art collection and elevating awareness of the Public Art program through the expansion of current temporary Public Art projects and with the integration of cost-effective functional art. Annual updates will be provided to Council which will report on the progress and successes of the Public Art program. CONCURRENCES On November 2, 2015, the Parks and Recreation Commission reviewed the final version of the 19 Packet Pg. 344 proposed Public Art Master Plan, received public input, and has recommended that the City Council adopt the Public Art Master Plan (Attachment A – Meeting Minutes). Other Master Plan Review Team members in the Public Works and Community Development Departments, as well as members from Arts Obispo and Downtown Association have also reviewed the draft Plan and concur with its content. Consistent with past practice, all Public Art projects shall be subject to CEQA review and shall be found consistent with general plan policies and City regulations. FISCAL IMPACT There is no General Fund fiscal impact associated with the adoption of the City’s Public Art Master Plan. Budget requests addressing short-term action items will be submitted for consideration as part of the 2017-19 Financial Planning process and will be reliant upon available monies in the Public Art Fund. There is currently $422,077 available in the Public Art Fund balance to support the implementation of the Public Art Master Plan. ALTERNATIVES The City Council could: 1. Amend and Approve. During its review and discussion of this item the Council could make amendments thereto and recommend approval. 2. Deny the City of San Luis Obispo Public Art Master Plan and not adopt the Plan. This alternative is not recommended given numerous opportunities for public input and the Parks and Recreation Commission’s recommendation. 3. Continue the item with specific direction if more information or discussion time is required before taking action. Attachments: a - Draft PRC Minutes 11.02.16 b - Public Art Master Plan 19 Packet Pg. 345 Minutes - DRAFT PARKS AND RECREATION COMMISSION 2 November, 2016 Regular Meeting of the Advisory Body Committee Commission CALL TO ORDER A Regular Meeting of the Parks and Recreation Commission was called to order on the 2nd day of November, 2016 at 5:29 p.m. in the City Council Chambers located at 990 Palm Street, San Luis Obispo, California, by Chair Whitener. ROLL CALL Present: Commissioners Greg Avakian, Susan Olson, Keri Schwab, Douglas Single, Rodney Thurman, Vice Chair Susan Updegrove and Chair Jeff Whitener Absent: Commissioner Greg Avakian, Commissioner Douglas Single Staff: Parks and Recreation Director Shelly Stanwyck, Recreation Manager Melissa Mudgett PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA None PRESENTATIONS, INTRODUCTIONS, APPOINTMENTS None CONSENT AGENDA AND CONSIDERATION OF MINUTES ACTION: APPROVE THE MEETING MINUTES OF OCTOBER 5, 2016 MOTION BY VICE CHAIR UPDEGROVE, SECOND BY COMMISSIONER OLSON. 1. Consideration of Minutes CARRIED 5:0:0:2 to approve the minutes of the Parks and Recreation Advisory Body for the meeting of 10/05/2016. AYES: OLSON, SCHWAB, THURMAN, UPDEGROVE, WHITENER NOES: NONE ABSTAIN: NONE ABSENT: AVAKIAN, SINGLE PUBLIC HEARINGS AND BUSINESS ITEMS 2. Proposed Goals to Council for 2017-19 Financial Plan 19.a Packet Pg. 346 Attachment: a - Draft PRC Minutes 11.02.16 (1514 : Adoption of Public Art Master Plan) DRAFT Minutes – Parks and Recreation Commission Meeting of November 2, 2016 Page 2 Director Stanwyck lead the Commission in a discussion about proposed Advisory Body goals for the 2017-19 Financial Plan. The Commission reviewed previous year’s goals and deliberated new goals that in support of the overall mission and vision of Parks and Recreation. Draft Advisory Body Goals were developed as proposed in priority order below and will be adopted by the Commission at its December meeting. 1.Provide funding for the development of a Master Plan for sustainable landscape in parks and the golf course. 2.Fund an update of the Parks and Recreation Element 3.In 2017-19, provide funding for construction of lit tennis courts and new pickleball courts in the City 4.Identify locations in the City for new construction of dog parks and provide funding for construction of one dog park during 2017-19 5.Increase the number of City parks facilities and maximize the potential uses of existing parks Public Comment None ACTION: RECOMMEND ADVISORY BODY GOALS FOR COUNCIL’S CONSIDERATION NIN THE 2017-19 FINANCIAL PLAN MOTION BY COMMISSIONER OLSON, SECOND BY COMMISSIONER SCHWAB. CARRIED 5:0:0:2 to propose Goals to Council for the 2017-19 Financial Plan. AYES: OLSON, SCHWAB, THURMAN, UPDEGROVE, WHITENER NOES: NONE ABSTAIN: NONE ABSENT: AVAKIAN, SINGLE 3. Review and Recommend to Council Adoption of Proposed Public Art Master Plan Recreation Manager Melissa Mudgett presented to the Commission the revised draft Public Art Master Plan. Staff Mudgett provided an overview of the year-long process and how the Master Plan was developed through multiple public engagement opportunities and community feedback. Staff Mudgett said the revised draft Master Plan is reflective of community’s feedback from these diverse public engagement opportunities and focuses on operational and programmatic priorities with goals and objectives that will serve as an effective road map for the future of public art in San Luis Obispo. Staff Mudgett reviewed the five Goals of the Master Plan and how these goals and their objectives have been identified as the best way to meet the needs and expectations of the community through public art. Staff Mudgett added that should the Commission recommend adoption of the Public Art Master plan, it would be scheduled for the City Council’s consideration at the meeting of December 13, 2016. Upon approval by Council, staff would begin implementation of the immediate short- term action items with budget request as part of the 2017-19 Financial Planning process. It is anticipated that Parks and Recreation staff would return to the Commission and the City Council with annual Public Art Master Plan progress reports. Public Comments 19.a Packet Pg. 347 Attachment: a - Draft PRC Minutes 11.02.16 (1514 : Adoption of Public Art Master Plan) DRAFT Minutes – Parks and Recreation Commission Meeting of November 2, 2016 Page 3 Landy Fike, SLO Resident, asked if there was a way to incentivize function public art into developments early on. For example, if a developer needs to put in railings on a project and they work with an artist to make then “artistic railings”, could the developer be incentivized to pay a little more for public art railings and get a price break on the in -lieu fees. Staff Mudgett responded that this option could be explored further when reviewing the current development process and identifying enhancements. Kay Radar, representing County Library, was in support of the Public Art Master Plan. She added that the Library was identified as a potential location for public art and was curious about the timing for new art at this location. Staff Mudgett said that all proposed locations for public art will undergo a prioritization effort. Staff Mudgett said that this exercise could occur in 2017 following the Council’s adoption of the Public Art Master Plan. The 2017-19 Financial Plan focusses on maintenance and temporary public art installation. Staff Mudgett anticipated new public art installations could be included in the 2019-21 Financial Plan. Commission Comments followed. The Commission expressed its support of the proposed Public Art Master Plan. Commissioner Thurman asked for clarification of the developer’s catalog of pre-approved art pieces. Staff Mudgett responded that it was more like a resource directly for art types and artists. Commissioner Schwab was in support of using technology to elevate awareness of the program. She added that she would love to see a future walking-tour of public art. Chair Whitener asked if crowd-sourcing was possible. He added that he liked the collection inventory in the plan and was in support of new murals throughout town. ACTION: RECOMMEND TO THE CITY COUNCIL THAT IT ADOPT THE CITY OF SAN LUIS OBISPO PUBLIC ART MASTER PLAN MOTION BY VICE CHAIR UPDEGROVE, SECOND BY COMMISSIONER THURMAN. CARRIED 5:0:0:2 to recommend Council adoption of the City of San Luis Obispo Public Art Master Plan. AYES: OLSON, SCHWAB, THURMAN, UPDEGROVE, WHITENER NOES: NONE ABSTAIN: NONE ABSENT: AVAKIAN, SINGLE 4. Recommend Letter to Council in Support of Modifying City’s Water Ordinance Director Stanwyck reminded that the Commission of the challenges of field renovation due to the prolonged drought. In compliance with State Law, the City enacted an ordinance in June 2015 to reduce the use of water in our community. As the drought continues and well over a year into the ordinance adoption public and private properties continue to be impacted with the loss of turf, vegetation, and trees. However, as a result of compliance with this ordinance the reductions in water usage in San Luis Obispo meet and exceed the State mandated reductions. Director Stanwyck reiterated that as a result of the current ordinance the effectiveness of the water application is critical. City staff will be recommending an amendment to the existing drought ordinance so that the public may still have safe access to a limited 19.a Packet Pg. 348 Attachment: a - Draft PRC Minutes 11.02.16 (1514 : Adoption of Public Art Master Plan) 1 SAN LUIS OBISPO PUBLIC ART MASTER PLAN WHAT’S NEXT FOR PUBLIC ART IN SLO? 19.b Packet Pg. 349 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 2 19.b Packet Pg. 350 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 3 19.b Packet Pg. 351 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 4 19.b Packet Pg. 352 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 5 SAN LUIS OBISPO PUBLIC ART MASTER PLAN WHAT’S NEXT FOR PUBLIC ART IN SLO? 19.b Packet Pg. 353 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 6 TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1. WHAT IS PUBLIC ART2. PURPOSE OF THIS PLAN 3. EXECUTIVE SUMMARY CHAPTER 2: EXISTING CONDITIONS 1. EXISTING FUNDING POLICIES2. EXISTING PUBLIC ART REVIEW PROCESS3. EXISTING MAINTENANCE PRACTICES4. CURRENT PUBLIC ART INVENTORY CHAPTER 3: PUBLIC INPUT 1. NEEDS ANALYSIS AND OUTREACH CHAPTER 4: RECOMMENDATIONS 1. SUMMARY OF RECOMMENDATIONS2. PUBLIC ART GOALS AND OBJECTIVES CHAPTER 5: IMPLEMENTATION STRATEGIES 1. WHO2. WHAT3. WHERE4. WHEN 8 91011 12 22 26 34 12 17 1918 22 3026 3834 4442 19.b Packet Pg. 354 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 7 50APPENDIX APPENDIX A: PUBLIC ART LOCATIONS MAP APPENDIX B: ESSENCE OF SAN LUIS OBISPO APPENDIX C: COMMUNITY-GENERATED PROJECT IDEAS APPENDIX D: COMMUNITY WORKSHOP RESULTS 54 74 80 52 19.b Packet Pg. 355 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) PAULA ZIMA “Tequski Wa Suwa” (Child & Bear) 1988“Qiqsmu” (Bear Cubs) 2004“Yach Ka” (Trout) 2005 8 19.b Packet Pg. 356 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 9 CHAPTER 1 INTRODUCTION 1. WHAT IS PUBLIC ART? Public art is more than just statues in public locations. Public art can and should be ingrained in the civic imagination of a community. It can be on every street in every neighborhood; next to bike paths and along hiking trails. Art can be participatory and interactive or contemplative and passive. Public art should reflect a City’s culture and residents while being accessible to all. If schools teach, bridges traverse, and streetlights brighten, then public art tells a community’s story to the world. Art is a tool to speak to visitors, residents, and students seeking out a sense of community from across the state or across the ocean. The San Luis Obispo Public Art Master Plan lays the foundation for the future of its public art program and by extension prepares for the next chapter of its story. 2. THE PURPOSE OF THIS PLAN The purpose of this Public Art Master Plan is to continue the legacy of the 20 year’s old City program. It identifies where the Program has been, where it is today, and where it can go in the future. By having a Public Art Master Plan, the City of San Luis Obispo will have a framework within which to continue to focus on art as a character defining community value that supports the community’s sense of place and livability. This Master Plan is the vision for the City of San Luis Obispo’s public art program for the next decade. This ten-year plan is intended to serve as both a guiding document that evidences the City’s commitment to public art, as well as an evolving document that is reviewed annually for progress and relevancy. 19.b Packet Pg. 357 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 10 3. EXECUTIVE SUMMARY The recommendations within this Public Art Master Plan include goals and objectives to strengthen the City of San Luis Obispo’s commitment to sustaining a vibrant community, rich in public art. For the next ten years it guides San Luis Obispo in the strategic application of bigger-picture thinking through the identification of resources and the nurturing of existing community partnerships. The Plan sets out tactical strategies that will make the City’s public art program more successful. The Plan identifies building a stronger network of partnerships with arts and cultural organizations, community groups, and business organizations. The plan also establishes priorities for public art that should be commissioned in San Luis Obispo and how the community’s shared resources (funding and professional expertise) should be directed. 19.b Packet Pg. 358 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 11 San Luis Obispo2012 Implementation of the Plan is accomplished through achieving five goals and 25 objectives over a ten year period. The goals of the plan are generally as follows: creative public engagement and outreach strategies; preservation of the existing public art collection; streamlining of the building review and permitting processes; diversification of the Public art collection with new art types; and exploration of new funding and community partnership models. 19.b Packet Pg. 359 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 12 For over twenty-five years the City of San Luis Obispo has made investment in the arts at a citywide level. In 1990, the city of San Luis Obispo established and funded its first public art program. The program’s first “investor” was the City. It derived funding from the self-assessment by the City of one percent (1%) of the estimated construction costs of eligible capital improvement projects be set aside for public art. Ten years later the City passed an ordinance (addressing funding for public art in private development). This “public art” ordinance required private sector investment in the arts when developers and property owners significantly improved private property or constructed new developments. Developers and property owners could elect to either incorporate art into a project or pay to the City a public art in-lieu fee In addition to City funded public art and public art in private development, San Luis Obispo also allows the donation of public art to the City as well as has a program for matching grants for public art. Staffing for the public art program as always been an additional duty for a manager at the City. The Program was initially managed in Community Development, then Administration, and today is managed by the Parks and Recreation where the Recreation Manager adds this to her duties. Over time, as the City’s Public Art Program grew, a “collection” arose to include today over seventy-eight pieces of public art- including mosaics, oil and watercolor paintings, utility box art, stained glass, sculptures, benches, bridge railings and much more. 1. EXISTING FUNDING POLICIES A. CITY-FUNDED PUBLIC ART In May 1990, the City Council established and funded a public art program (Resolution No. 6811 (1990 Series)). The Council adopted a “Visual Arts in Public Places” program which is often referred to as the City’s public art program. It was determined by Resolution that one percent (1%) of the estimated construction cost of eligible City projects in its Capital Improvement Plan should be set aside in a public art fund for the CHAPTER 2 EXISTING CONDITIONS 19.b Packet Pg. 360 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) STRONG PLAY ETHICCarol Paulsen, Stephen Plowman & Stephen Van Stone2006 13 19.b Packet Pg. 361 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) design and installation of public art. Funding at less than 1% policy level has been done in the past in response to budgetary constraints during time of economic recession. Capital projects are evaluated during the City’s budget process and includes conformance with the City’s Public Art Policy; which requires that 1% of an eligible project’s construction costs be set aside for public art. Excluded from this requirement are underground projects and utility infrastructure products. The City’s contribution to its Public Art Fund varies as it is dependent upon the construction costs associated with eligible projects approved in the capital improvement program. Currently Public Art Funding by the City averages from $18,000 to $35,000 annually. The City’s contribution is made directly to the Public Art Fund where it aggregates over time and is combined with other art funding (private in lieu fee, grants, and donations) to support the installation of public art pieces within the City. An example of aggregating funding for the sole purpose of supporting a significant public art installation is SLO Skate Park Concrete Jungle public art project (below) which had a total public art budget of $250,000. B. PUBLIC ART IN PRIVATE DEVELOPMENTThe City of San Luis Obispo seeks to enhance the cultural and aesthetic environment of the City and to encourage creativity and an appreciation of the arts and cultural heritage. The Public Art in Private Development Ordinance (Ordinance No. 1372 (2000 Series) requires private property owners and developers to incorporate a piece(s) of art in new developments or substantially improved developments in the City, or voluntarily elect to purchase a piece of art and donate it to the City or pay a public art in-lieu fee. While It is generally preferred that public art be incorporated directly into the project, this may not always be practical or desirable. In that case, a public art in-lieu fee contribution to the public art fund is made by the project applicant. The Public Art in Private Development program is designed to allow applicants some flexibility in meeting its requirements. If the applicant chooses to incorporate a piece of public art into the project, 14 19.b Packet Pg. 362 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) s/he is required to submit a public art application to the City for consideration during the development review process. City staff in Parks and Recreation assist by informing the applicant of the process as well as options and opportunities (such as connecting the applicant to a private, non-profit local arts advocacy group (Arts Obispo)) to connect them with local arts resources. Once an applicant submits a completed public art application and all requirements have been met, Parks and Recreation staff assemble an art jury to review applicants’ proposal. Public Art proposals require all appropriate Advisory Body and City Council approvals as well as engineered drawings and building permits. If the payment of an art in-lieu fee is elected by the applicant, the minimum cost of the public art, including installation, is determined by the amount equal to one-half of one percent (.5%) of that portion of the total construction costs in excess of $100,000. The maximum amount an applicant can be charged for an art in-lieu fee is $50,000 for each building permit. The art-in-lieu fee is calculated and collected by the Community Development Department during the permitting process. The art in-lieu fees are then deposited into the City’s public art fund which is aggregated for use by future public art projects city-wide. A few examples of public art in private development can be seen at Kennedy Club Fitness (Tank Farm Road at Long Street) and the DeVaul Ranch Development (Los Osos Valley Road). C. PRIVATELY FUNDED ART IN PUBLIC PLACES Another important source of public art is that which is privately funded, but located in a public place. Usually, such works are commissioned by an individual, a group of individuals, a non-profit organization or a business or corporation. Whatever may be the reason for the offer of public art to be placed on City property, the offer triggers a donation acceptance and public art review process. An example of privately funding art in public places would be “Oh Great Spirit”, a privately purchased art piece (Artist CONCRETE JUNGLEJed Joyce and John T. Jones2016 15 19.b Packet Pg. 363 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 16 Nell Banister Scruggs) is a 12-foot cast bronze sculpture of a Native American with his hands reaching up to the sky (pictured on page 18). This art piece honors the sensitive connection between the people, plants, medicine and health that Native Americans first discovered. This private art piece was donated to the City in 2009 for placement in a public trail entrance at the intersection of South Higuera Street and Prado Road. D. MATCHING GRANTS FOR PUBLIC ARTWhen the Visual Arts in Public Places program was adopted in 1990, it included a section which established a matching grant fund to encourage the inclusion of public art in private construction projects. The program was seldom used and in 2000, with the passage of Ordinance No.1372 requiring public art in privately-funded, nonresidential projects, the matching grant program was rescinded. In 2005, the Matching Grant Program was reinstated with receipt of the two requests for matching funds, and recognizing the benefits of leveraging public and private dollars. The ordinance was amended to allow for the expansion of public art opportunities within the City, especially during a time of limited fiscal resources. Projects eligible for matching grant funds provide a clear public benefit, remain accessible to the public, meet the guidelines are artistic excellence and advance the City’s public art goals of incorporating new art types into the City’s current collection. Parks and Recreation staff present requests for matching grants to the City Council for consideration. The resolution (Resolution 9656 (2005 Series) requires that the City Council determine the appropriate level of matching funds up to a dollar-for-dollar level for each request. Examples of this type of public art include the recent Library Mural (Movimiento Mundial by Artist Robert Maja) which was made possible through a matching grant with the Friends of the Library. This mural is located inside the City/County public library on Palm Street. Another example is the Roots of the Community marble sculpture located at the Meadow Park Community Garden. This public art piece was supported in part by generation donations from the Cydney Holcomb Trust and three local Rotary Clubs to honor a fellow Rotarian for her commitment to quality neighborhoods. 2. EXISTING PUBLIC ART REVIEW PROCESS The current public art review process is lengthy with the steps needed to go from concept to installation being extensive. It often takes several years for a public art project to go from start to finish. The current process requires solicitation of public art project ideas and locations, Council allocation of funding, solicitation of proposals through a “Call for Artists” as defined by the City’s Request for Proposal (RFP) process, assembling an art jury review with diverse community representation, multiple City advisory body reviews, Council approvals, contract award with the selected artist(s), design, extensive permitting and engineering requirements, construction, public art installment and inspections. 19.b Packet Pg. 364 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 17 In addition to the current and extensive process, the public art program is absent a dedicated staffing resource. As a result, this process must be overlaid with the day-to-day responsibilities of the Parks and Recreation Department, competing with other City priorities for available staffing resources and time. Below is a flow chart of the existing public art review process and estimated timeline. PUBLIC ART REVIEW PROCESS CHARTCity Funded Public Art CIP Review Committee Recommendations (the recommendations include project/site and funding for the two year financial plan) Artwork Installed Arts Obispo Arts in Public Places CommitteeRecommendation RFQ/ Call for Artists Released (reviewed by PW/CDD public art team members)*All projects typically have the same process for completion Council ApprovesRecommendations Council Approves Artwork Jury Review (PW or CDD public art team member on jury) CDD Staff Routes to other Departments (as needed) Public Art Manager decides order of projects to be completed (typically two per fiscal year) Public Art Manager & Public Works Develop Request for Proposals (Call for Artists) Finalist Selected(Public Art Manager submits Planning Application with supporting documents [See Planning App Section c]) ARC Review(Public Art Manager submits ARC staff report to CCD) PRC Review(If appropriate; depending on the location) CHC Review(If appropriate; depending on the location) Public Art Manager Secures Contract with Artist(s) Public Art Manager works with Artist(s) on plan check and permits MONTHS 0-3 MONTHS 3-8 MONTHS 9-15 MONTHS 16-21 MONTHS 22-24 19.b Packet Pg. 365 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 3. EXISTING MAINTENANCE PRACTICES Like all City facilities, public art requires maintenance and occasional repairs. Although the City’s guidelines encourage artworks requiring “little or no maintenance”, art pieces vary in the amount of maintenance required, resistance to vandalism, and ease of repair. The Parks and Recreation and the Public Works Departments share in the maintenance responsibilities of the City’s public art collection. The Public Works Department is responsible for maintaining City facilities, which includes all City-owned or City sponsored public art. Consistent with the adopted public art policy, the Parks and Recreation Department staff ensures that the artist has completed the required Maintenance Record Form prior to acceptance of the artwork into the City’s collection. Once a public art piece is added to the City’s inventory, these two departments utilize these maintenance guidelines to determine routine and cyclical maintenance needs, Public Works staff are responsible for replacing light bulbs, electrical repairs, city tree trimming, trash and graffiti removals. Parks and Recreation staff are responsible for coordinating preventative maintenance activities such as cleaning, waxing and minor landscaping and larger mechanical activities like tightening, adjusting, oiling, repainting/powder coating and repairs. Staff reviews the public art collection annually and seeks funding approval from the City Council to allocate funding towards the routine and cyclical maintenance activities through the capital improvement project process. Preventative maintenance is critical in preserving the appearance and longevity of the artwork within the City’s collection. Improper maintenance and repair methods can damage valuable artworks. Temporary artworks owned by others but exhibited in City buildings or on City-owned land remain the responsibility of the owner, unless other arrangements are made by prior agreement with the City. OH GREAT SPIRIT Nell Banister ScruggsSouth Higuera and Prado Rd2011 18 19.b Packet Pg. 366 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 4. CURRENT PUBLIC ART INVENTORY Over the past twenty years, the City of San Luis Obispo has been successful in adding both permanent and temporary public art pieces into its collection. As of December 2016, there are a total of seventy-six public art pieces in the City’s collection. Thirty-seven public art pieces are considered permanent and thirty-nine are categorized as temporary box art murals. The majority of the permanent public art pieces are sculptures located throughout the city. The temporary public art pieces consist of smaller individual murals painted on the exterior of city-owned traffic signal cabinets as part of the City’s adopted and ongoing public art program for Box Art. The majority of the temporary public Box Art is located in the City’s downtown core as the project originally began in 2010 as a temporary public art pilot program for various downtown beautification efforts. Over the past six years, this exterior art display has increased in popularity. In 2016, and in recognition of the benefits of this street art, the Box Art Policy was adopted by City Council as a regular public art program consisting of temporary art murals with a defined lifespan. The intent of the policy is to eventually expand the exterior box art murals to all of the 64 City traffic signal cabinet locations over the next five to seven years. In November 2016, the Box Art Program was expanded to include eight new box art designs and three significant repairs. The majority of the permanent public art pieces are located in city parks and public right-of-way throughout the city. A current public art inventory listing; including title, type, artist and date accessioned into the collection is provided below as Table 1. Provided as Appendix A is a mapping of public art piece and locations throughout the City of San Luis Obispo. 19 19.b Packet Pg. 367 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 20 *Map #Public Art Piece Permanent or Temporary Artist Year Art Type 1 Tequski Wa Suwa (Child & Bear) Qiqsmu (Bear Cubs) & Yach Ka (Steelhead Trout)Permanent Paula Zima 1988, 2004, 2005 Sculpture 2 Concrete Jungle Permanent Jed Joyce and John T. Jones 2015 Sculpture 3 Ironroad Pioneers Permanent Elizabeth McQueen 2002 Sculpture 4 Perpetual Hope Permanent Allen Root 2007 Sculpture 5 Chumash Pictographs Permanent Jim Jacobson 1999 Sculpture 6 Metal Amphitheater Backdrop Permanent Jim Fickes 1980 Sculpture 7 Movimiento Mundial Permanent Robert Maja 2013 Mural 8 Love and Double Joy Permanent Peter Ladochy 1997 Tile 9 Bee Bee Works His Magic Permanent Carol Paulson, Stephen Plowman 2008 Sculpture 10 Magic Sister Permanent Carol Paulson, Stephen Plowman 2002 Sculpture 11 Bonding Dance Permanent Alan Riggle 2002 Sculpture 12 Downtown Points of Interest Permanent Tres Feltman 2002 Sculpture 13 Hey Diddle, Diddle Permanent Sandra Kay Johnson 2003 Sculpture 14 Puck Permanent Elizabeth McQueen 2003 Sculpture 15 Sycamore Theme Permanent Mark Jepson, Randy Augsburger 2001 Sculpture 16 Sycamore & Budding Thistle Permanent Jim Jacobson 1999 Sculpture 17 Fish Life Permanent Jim Jacobson 1999 Sculpture 18 Tankhead Fish (Replacement)Permanent Randy Augsburger 1996 Sculpture 19 Garnet Permanent Kate Britton 2002 Sculpture 20 Web of Life Permanent Sandra Kay Johnson 2000 Sculpture 21 Flames of Knowledge Permanent Jim Jacobson 1998 Sculpture 22 Tankhead Fish Permanent John Augsburger 1977 Sculpture 23 Minoan Tribute Permanent Sandra Kay Johnson 2000 Stained Glass 24 Seven Sisters Railing Permanent Jim Jacobson 2000 Functional Art 25 Cheng Park Permanent Alice LohHang Zhou 2007 Pocket park 26 Vehicle of SLO County Permanent Michelle Griffoul 1990 Sculpture 27 The American Spirit Permanent Jim Jacobson, Will Carlton & Erick Wand 2003 Sculpture 28 Court of Historic Flags Permanent Bob Nichols 1997, 2007 Tile 29 Community’s Bridge Permanent Allen Root (Ferromobius)2000, 2007 Functional Art 30 Strong Play Ethic Permanent Carol Paulsen, Stephen Plowman & Stephen Van Stone 2005 Sculpture 31 Roots and Wings Permanent Michael Laboon 2007 Sculpture 32 Bequest Permanent Brian Chessmar 2010 Sculpture 33 Icons of an Era Permanent Jim Trask 2006 Sculpture 34 Reflections of Another Time Permanent Mark Jepson 2004 Sculpture 35 Oh Great Spirit Permanent Nell Banister Scruggs 2011 Sculpture 36 Roots of the Community Permanent Joshua Wiener 2013 Sculpture 37 Standing Tall (WTC Memorial)Permanent Kathleen Caricof 2015 Sculpture 38 Subaqueous Temporary Joe Bachelor 2010 Box Art Mural 39 Musical Eclecticism Temporary Joe Bachelor 2010 Box Art Mural 40 The Hummingbird Effect Temporary Joe Bachelor 2010 Box Art Mural TABLE 1: SAN LUIS OBISPO PUBLIC ART COLLECTION * Please find map in Appendix A, Pages 52-53 19.b Packet Pg. 368 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 21 *Map #Public Art Piece Permanent or Temporary Artist Year Art Type 41 Birds of Whimsy Temporary Jeff Claassen 2012 Box Art Mural 42 Spooners Temporary Charlie Clingman 2012 Box Art Mural 43 There’s No Place Like HomeJacaranda Deco Temporary Alister DippnerElizabeth Hudson 2012(deaccessioned in 2016)2016 Box Art Mural 44 Secret Kelp Forest Temporary Colleen Gnos 2010 Box Art Mural 45 Seven Treasures Strata Temporary Marcie Harvey 2010 Box Art Mural 46 Hedge Temporary Marcie Harvey 2010 Box Art Mural 47 Trout Temporary Marcie Hawthorne 2010 Box Art Mural 48 Koi Joy Temporary Marcie Hawthorne 2010 Box Art Mural 49 Signature Birds of SLO Temporary Marcie Hawthorne 2012 Box Art Mural 50 Dogs About Town Temporary Frankel and Hawthorne 2012 Box Art Mural 51 Mariachi SLO Temporary Frankel and Hawthorne 2012 Box Art Mural 52 The Flight of the Monarchs Temporary Lynn Hessler 2010 Box Art Mural 53 unnamed Temporary Justin Johnson 2010 Box Art Mural 54 Levitating Cube (of Swiss)Temporary Jed Joyce 2010 Box Art Mural 55 Sunset Temporary Rachel LaBonte 2012 Box Art Mural 56 Central Coast … Color & Culture Temporary Robert MAJA 2010 Box Art Mural 57 Everyone Trying to Fit In Temporary STENZSKULL 2012 Box Art Mural 58 Unnamed Temporary Abbey Onikoyi 2012 Box Art Mural 59 Oso Libre (Free Bears)Temporary Carol Paulsen 2010 Box Art Mural 60 Pismo Temporary Chris Pedersen 2012 Box Art Mural 61 Roots, Rocks, Right & Left Temporary Chris Pedersen 2012 Box Art Mural 62 Stuck Temporary Samantha Pereira 2010 Box Art Mural 63 unnamed Temporary Jane Pomeroy 2012 Box Art Mural 64 Barn Owls Temporary Lena Rushing 2012 Box Art Mural 65 unnamed Temporary Blair Rusin 2010 Box Art Mural 66 UnnamedLove of Color Temporary Joey SalazarSara Burke 2010 (deaccessioned in 2016)2016 Box Art Mural 67 Bishop’s Peak Temporary Ryan Williams 2010 Box Art Mural 68 A Joy II Temporary Ryan Williams 2012 Box Art Mural 69 Fence, Fields & Sky Temporary Amy McKay 2010 Box Art Mural 70 Farmer’s Market Box Temporary Amy McKay 2012 Box Art Mural **71 Once Upon a Dream Temporary Alister Dippner 2016 Box Art Mural **72 Robot Temporary Heidi Kruger 2016 Box Art Mural **73 SLO Many Cows Temporary Elena Aker 2016 Box Art Mural **74 Sweet and Low Temporary Bret Brown 2016 Box Art Mural **75 Celebrate SLO Temporary Nate Erlin 2016 Box Art Mural **76 Naturally Beautiful Temporary Laura Lozingo 2016 Box Art Mural ** Not Displayed on Map * Please find map in Appendix A, Pages 52-53 19.b Packet Pg. 369 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 22 CHAPTER 3 PUBLIC INPUT In an effort to build upon the City’s strong legacy of public art and to look forward to the next decade of expansion, City staff and a consultant intentionally sought extensive input from the community and local arts advocates to find out what is next for the Public Art Program in San Luis Obispo. 1. NEEDS ANALYSIS AND OUTREACH A. WHAT WAS ASKED To kick off the community engagement process, stakeholders were met with one on one and in small groups and asked a series of questions about how public art relates to: their sense of place; the overall identity of San Luis Obispo; business development; education; downtown the environment; and the community. Each stakeholder was asked about their perception of the City’s Program and how the work of the program impacted the City and their neighborhoods. They were asked how they envisioned the growth of the program and what specifically the program needed in order to reach the next level. The stakeholders were diverse. They were artists, teachers, Council members, architects, students, residents, current and past City staff, Cal Poly administration, Architecture Review Commissioners, and local business owners. As a result, the input received was well-rounded and informative and has helped to lay the foundation of public art program for the next ten years. The City invited residents to participate in a week-long series of community engagement events which included;• Fountain-side Chat at Mission Plaza• SLO Skate Park Community Workshop• Farmer’s Market Informational Booth• San Luis High School Art Class• Laguna Middle School Teen Program• Elementary after-school program (Hawthorne) Participants were asked to consider where new pieces of public art should go and what types of art they would like to see in their community. Attributes that make San Luis Obispo stand out among other Central Coast communities, California communities, and the rest of the United States were discussed. Participants were also invited to sketch their ideas for public art pieces, and to share their ideas on themes for new art. 19.b Packet Pg. 370 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) FLAMES OF KNOWLEDGE Jim Jacobson1998 23 19.b Packet Pg. 371 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 24 Last, two online surveys were also conducted (both privately and via the City’s website with “Open City Hall”) to capture the ideas of those who were unable to attend any of the scheduled community engagement opportunities and public workshops. A public workshop of the Parks and Recreation Commission was also hosted following the conclusion of the community engagement opportunities to review and provide feedback on the draft plan elements. B. WHAT WAS HEARD Throughout the public engagement process, several themes emerged. Those themes are as follows: 1. PRIDE. The public art collection of San Luis Obispo is a source of pride. When asked what drew them to live in San Luis Obispo, overwhelmingly, residents responded with three reasons: nature, the people, and the artsy and creative spirit of the locals. 2. SUSTAINABILITY. Civic leaders and residents share the same vision for the arts- one rooted in strategic planning and policy. As a result of a maturing collection, few new pieces have been added and focus has shifted more toward conservation and maintenance. This Public Art Master Plan is positioned as a key first step to achieving broader aspirations. 3. EASE OF PROCESS. Developers would prefer to incorporate public art into projects rather than “just” pay the in-lieu fee. However, many cite the existing development review process as being too cumbersome in addition to the building and permitting process to create site-specific art. 4. CAREFUL SELECTION. Residents would like to see more modern art added to the collection as well as murals. However, there was a resounding preference for making sure the art never upstages the natural beauty of San Luis Obispo. 5. INTEGRATION. The community would like for public art to be part of the broader discussion about the future of the community, not just a discussion within the arts community. 6. SOLIDIFY PARTNERSHIPS. San Luis Obispo’s creative community boasts a range of organizations with whom partnerships between the City and the organizations themselves would be advantageous for the long term future of public art in the City. 7. MAKE PUBLIC ART A PRIORITY. Although the Parks and Recreation Department’s Recreation Manager position helps to coordinate the public art program, there is no staff person assigned solely to public art. Different models to develop this focus should be explored. *Please see Appendix D for a complete copy of the public art master plan survey results. 19.b Packet Pg. 372 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) Farmer’s Market 2015 25 19.b Packet Pg. 373 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 26 CHAPTER 4 RECOMMENDATIONS As a direct result of the San Luis Obispo Public Art Master planning process, several themes emerged from making public art a priority, to sustainability and preservation of the public art collection, to streamlining the process for ease and enhancing community partnerships. From those themes, five overarching recommendations for the future of the City’s Public Art Program’s sustainability and evolution were developed and are summarized as follows; 1. SUMMARY OF RECOMMENDATIONS A. CELEBRATE PUBLIC ARTCreative public engagement and outreach strategies intended to engage a diverse community, increase the visibility of the public art program and embellish the community’s sense of pride of the public art shall be used. Case Study: Portland, OregonPortland’s Regional Arts and Culture Council recently sponsored an event which utilize large numbers of volunteers to help produce Portland’s first Disability Film Festival, and the 7th Disability Pride Art and Culture Festival. B. ENSURE SUSTAINABILITY AND THE PRESERVATION OF THE CURRENT AND FUTURE COLLECTIONThe City’s public art collection will be maintained and preserved in accordance with Best Management practices for public art. Funding and focus should annually include conservation and maintenance as reflective of a mature public art collection Case Study: City of St. Paul, MinnesotaThe City of St. Paul’s highly regarded Public Art Maintenance Program annually appropriate through the public art Ordinance one-half of one percent of total Capital Improvement budget to specifically fund maintenance activities. Appropriations generally range between $6,800 - 7,800 annually. 19.b Packet Pg. 374 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) Top: JIM FICKES Metal Amphitheater 1980 Middle: KATE BRITTON Garnet 2002 Bottom: ELIZABETH MACQUEEN Puck 2003 27 19.b Packet Pg. 375 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) C. MAKE IT EASIER FOR PUBLIC ART TO BE INTEGRATED IN PRIVATE DEVELOPMENTIntegration of public art into private development projects shall be encouraged by the streamlining of the review and building permit process and practices. Case Study: Beverly Hills, CaliforniaIn 2015, rather than commissioning a piece of public art for a prominent location the Beverly Hills Fine Arts chose to purchase an already fabricated piece from renowned South African artist William Kentridge. The piece titled World On Its Hind Legs (pictured below) touches on subjects that likely would have not be delved into by a commissioned art pieces such as colonialism and industrialization. The streamlined purchase brought a piece of globally renowned work to Southern California. D. ENCOURAGE NEW ART FORMS AND FUNDING OPPORTUNITIESThe program should encourage more semi-permanent pieces (i.e. Box Art) as well as the addition of modern art pieces and murals to the collection. New and different funding models and opportunities should on an ongoing basis. 28 19.b Packet Pg. 376 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) Case Study: City of Santa Monica, CaliforniaThe City of Santa Monica’s cultural requirement for development is both innovative and flexible, calling for developers to allot 2% of their building permit valuation to on-site arts and/or cultural uses or to make a contribution of 1% of the project costs to a Cultural Arts Trust Fund. The Council’s goal is not only to preserve but also to improve the quality of life within the City (Santa Monica Municipal Code: 9.04.10.20.010). E. EXPLORE DIFFERENT STAFFING AND COMMUNITY PARTNERSHIP MODELSDifferent models to manage this program should be explored from staffing opportunities to expanded community partnerships. Case Study: Palo Alto, CaliforniaThe City of Palo Alto Public Art Program is committed to contributing to the intellectual, emotional, and creative life of the Palo Alto community by creating engaging art experiences and dynamic public spaces for Palo Alto residents and visitors. The City collection of public art is comprised of approximately 100 permanently sited works and approximately 200 portable works of art in a diverse range of media. All works are commissioned and acquired through a public process. Palo Alto’s Public Art Program is managed in the City’s Community Services Department and has one full-time Public Art Program Manager and one part-time Public Art Program Assistant dedicated to the program. This staffing resource is supplemented by the numerous volunteer hours needed to help put on events annually and 6+ collaborative art-centric community partnerships that help support the program, leverage funding opportunities, and jointly seek grant monies for special projects such as the “Gimme Graffiti”, a unique mural program. Left:WILLIAM KENTRIDGEWorld On Its Hind LegsBeverly HillsPurchase of preconstructed piecefor public art display 29 19.b Packet Pg. 377 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 30 2. PUBLIC ART GOALS AND OBJECTIVES The guiding core of this Public Art Master Plan is its goals and objectives. There are five overarching goals and twenty-five key objectives listed for the public art program. The goals and objectives have been identified as the best way to meet the future needs and expectations of the community using the plan as a roadmap for the next ten years. Because public art can be dynamic, the plan is designed to be flexible in order to meet emerging community needs and/or respond to fiscal or other changes. GOAL 1: CELEBRATE PUBLIC ARTCreative public engagement and outreach strategies intended to engage a diverse community, increase the visibility of the public art program and embellish the community’s sense of pride of the public art shall be used. OBJECTIVES: 1.1 Increase visibility of the City’s public art by maintaining a current and comprehensive collection inventory and publicizing it through the City’s website. 1.2 Maximize and expand upon existing arts-related partnerships including those with Arts Obispo, SLO Museum of Art, Cuesta College Fine Arts and Cal Poly Arts Program. 1.3 Maximize the use of public art volunteers in the celebration of the collection by developing and sharing with the community, news outlets and publications, unique stories about each art piece. 1.4 Engage the community in an annual celebration of public art event with a creative and interactive public art experience such as a scavenger hunt or pop-up art event. 1.5 Elevate awareness of the program for residents and visitors through consistent and strategic messaging about the public art program in conjunction with existing promotional outlets of the TBID, Downtown Association and SLO Chamber of Commerce. 1.6 Explore regional arts-collaboration opportunities with other cities to learn about best practices, expand the role of education in the City’s public art program and employ creative concepts for celebrating public art. GOAL 2: ENSURE THE SUSTAINABILITY AND THE PRESERVATION OF THE CURRENT AND FUTURE PUBLIC ART COLLECTIONThe City’s public art collection is maintained and preserved in accordance with Best Management practices for public art. Funding and focus should annually include conservation and maintenance as reflective of a mature public art collection. 19.b Packet Pg. 378 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 31 GOAL 3: MAKE IT EASIER FOR PUBLIC ART TO BE INTEGRATED IN PRIVATE DEVELOPMENT Integration of public art into private development projects shall be encouraged by the streamlining of the review and building permit process and practices. OBJECTIVES: 3.1 Evaluate the development review and building permit process for public art. Implement identified process improvements. 3.2 Explore the need for a staff liaison in the Community Development Department to assist developers in the public art process in the pre-planning pre-submittal phase. 3.3 Create, and make available, an online catalog of pre-approved suitable art pieces and artists from which developers may select for typical development projects. 3.4 Integrate the City’s purchase of previously constructed and completed art pieces and manage the installation in public art projects similar to that of private development. OBJECTIVES: 2.1 Inspect art pieces within the current collection annually to identify immediate maintenance and minor repair needs. 2.2 Prioritize public art funding for the maintenance and immediate repairs of the current collection. 2.3 Develop and implement a longer-term maintenance plan to account for cyclical maintenance needs and larger repairs in accordance with Best Management Practices for the care of public art, including consultation with the artist for significant repairs. 2.4 Explore public-private sponsorships for maintenance through the establishment of a sponsorship program of individual art pieces. 2.5 Maximize the use of volunteers for routine maintenance needs as projects considered for annual work days, such as LOVE SLO or Make a Difference Day. 2.6 Simplify the online reporting of damaged art pieces by the public to aid City staff in identifying immediate repair needs. 19.b Packet Pg. 379 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 32 GOAL 4: ENCOURAGE NEW ART FORMS AND FUNDING OPPORTUNITIESThe program should encourage more semi-permanent pieces (i.e. Box Art) as well as the addition of modern art pieces and murals to the collection. New and different funding models and opportunities should be evaluated on an ongoing basis. OBJECTIVES: 4.1 Maximize each public art funding dollar by encouraging affordable temporary semi- permanent art installations such as Box Art, construction site murals or weekly Farmer’s Market pop-up art. 4.2 Seek diversity in the public art inventory by adding new art types, styles and mediums not currently represented in the collection. 4.3 Prioritize future locations for new public art types using a public engagement process. 4.4 Study public-private partnership opportunities such as citizen-driven funding, Federal and State grants, and partnerships with existing arts and tourism groups such as Arts Obispo, SLO Museum of Art and TBID to leverage funding opportunities for new art pieces. 4.5 Evaluate increasing the percentage of the City’s general fund contribution from the current 1% of eligible capital project costs. 4.6 Evaluate increasing the maximum amount of the calculated development in-lieu fees currently capped at a maximum payment of $50,000 per development project. GOAL 5: EXPLORE DIFFERENT STAFFING AND COMMUNITY PARTNERSHIP MODELSDifferent models to manage this program should be explored from staffing opportunities to expanded community partnerships. OBJECTIVES: 5.1 Study the need for a dedicated staffing resource for the public art program. 5.2 Explore community partnerships for shared resources and programming. 5.3 Expand partnerships to Cal Poly and Cuesta College to create public art opportunities for their students. 19.b Packet Pg. 380 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) BEE BEE WORKS HIS MAGIC, IN HONOR OF BILL BEESON Carol Paulsen, Stephen Plowman2008 33 19.b Packet Pg. 381 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 34 CHAPTER 5 IMPLEMEN TATIO N STRATEGIES The success of this Plan will be determined by the ongoing efforts of those in the arts community, city staff, and residents, to implement its goals and objectives. THE WHO, WHAT, WHERE & WHEN NEEDED TO IMPLEMENT THE PLAN GOALS AND OBJECTIVES The future of the City’s Public Art Program will be supported by the “Who”, “What”, “Where” and “When” identified as critical components needed for the successful implementation of the Master Plan goals and objectives. 1. WHO The future roadmap of the City’s Public Art Program will be reinforced by the community including Council, Advisory Bodies, Staff, Residents, Students, Volunteers and Community Partners and maybe even other agencies. The community members identified in this section, regardless of their affiliation, will fulfill a unique role in the creation of ideas, selection of new and creative art, and the implementation of key Plan objectives. A. CITY COUNCILThe City Council’s foresight and leadership will continue to encourage the development of public art in the City. B. ADVISORY BODIES The Architectural Review Commission, Cultural Heritage Committee and the Parks and Recreation Commissions will provide the technical review and recommendations to the City Council for acceptance of public art in the City. The purview of these three Advisory Bodies may vary slightly but for the purpose of reviewing the proposed art designs and locations for consistency with the City’s Guidelines for Public Art and conformance to the Historic Preservation Program Guidelines the will individually and/or jointly make recommendations for acceptance to the City Council. 19.b Packet Pg. 382 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) BEQUESTBrian Chessmar 2010 35 19.b Packet Pg. 383 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) C. CITY STAFFThe implementation of this Plan will be led by the Parks and Recreation Department Recreation Manager who will continue to be committed to the curation and expansion of public art in San Luis Obispo. The need for a dedicated staffing resource will be studied by staff. Different operational models for managing a public art program will be explored. Particular focus will be made as to community partnership based models where resources are shared and educational partners are included. Until future staffing models are identified and funded the Recreation Manager in Parks and Recreation will continue to serve as the program manager for public art. This role of course will be balanced against other competing management priorities associated with the Parks and Recreation Department and is a secondary duty of this position. D. RESIDENTS/STUDENTS/VOLUNTEERSThe City of San Luis Obispo has an abundance of engaged residents, students and volunteers who can help in the implementation of Master Plan goals and objectives. With the community’s help, there are endless opportunities to inject youthful energy into San Luis Obispo’s public art program in partnership with San Luis Coastal Unified School District as well as with Cuesta and Cal Poly through developed art curriculum. When art is created by San Luis Obispo’s young people it can embody the community. Young artists must be encouraged to participate in public art projects. As San Luis Obispo continues to be one of the most desired communities to live in on the Central Coast, Residents will be encouraged to interact with “SLO-centric” elements into their typical daily activities. This could be supported with the residents’ push for functional art within the community, such as decorative bike racks or benches or even murals painted up stair risers. Yarn Bombed Tree 2015 36 19.b Packet Pg. 384 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) The public has a multitude of volunteer opportunities to give back through the City’s Volunteer Program, Love SLO or Make-A-Difference Days. The Public Art program will seek to maximize Volunteer resources and provide opportunities to celebrate public art, help in providing routine cleaning of public art pieces or even volunteering as an Art Juror participating in the selection of new public art. E. COMMUNITY PARTNERSThe City has a long standing history with local arts-related community partners. In partnering with Arts Obispo and the SLO Museum of Art, they often have the ability to do what government affiliated groups may be unable to accomplish. Grant opportunities may be available that necessitate private arts organizations as the driver of funding awarded to non-profits. Programming and partnership options should also be considered with the SLO Children’s Museum, San Luis Obispo History Center, Cuesta College of Fine Arts and Cal Poly Art Program as this may be a key aspect of future Arts activities in San Luis Obispo. F. CORPORATE AND LOCAL BUSINESS COMMUNITYCorporations have helped advance San Luis Obispo through the state’s sometimes turbulent economy while small businesses are a part of the daily lives and help to fuel the local economy. By partnering with San Luis Obispo’s corporations and small businesses, the City can leverage funding for important programming or public art pieces that engage those citizens who frequently interact with them. Many of these opportunities can be small-scale projects that encourage interaction with the businesses and reorienting participants’ thought processes around the arts and arts education. The San Luis Obispo Chamber of Commerce, San Luis Obispo Tourism Program and the Downtown Association have been identified as key partners in supporting this connection between the City public art program and local businesses. Participants in the public art master planning process201537 19.b Packet Pg. 385 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 38 2. WHAT Four types of art are proposed to be focused on by the Public Art Program in the Future. The first is a very specific art form, the mural, that was the most requested by the public. The others present wider means of interpretation and creation of art ranging from continued focus on temporary art, to the exploration of new media to address youth and technology, to functional art that the City could pursue with increased frequency in its infrastructure projects. A. MURALSWhen asked about preferences for new types of public art, the public overwhelmingly supported the installation of murals. Murals can take inactive space and transform it. Spaces can be found throughout the City begging for attention and imagination. Mural opportunities are found in these blank walls are between buildings, on the ends of our blocks and on the backs of our neighborhood stores. Murals can provide an opportunity for semi-frequent rotation, providing the exposure of a diversity of artists over a short period of time rather than a few artists over the long term. Semi-permanence also allows for integration of other mediums not typically included in mural installation, such as photography. B. TEMPORARY ARTTemporary, or semi-permanent art lives up to its name – it can last a little (such as a day, week, month) or it can last a lot (such as the Box Art Murals that have a lifespan of 5-10 years). Though temporary art isn’t often long lived, it can have a lasting impact. A construction site may provoke grumbles, but wrap it in art and the feelings change. 19.b Packet Pg. 386 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 39 ESKIMO PIERobert Maja Private mural at High Street Deli Refurbished in 2007 Temporary art can be a cheap and easy way to inject art into the community. Temporary pubic art can be modest or enthralling. Either way, its short lifespan gives it energy and drives excitement. C. CONTEMPORARY SUBJECTSIn order to reach people, especially the younger generations, public art should seek to use the technology of today. Beyond just a contemporary or modern form, art must engage meaningfully. By using technology, it can channel the creativity of a new generation to add to the future of art in our city and beyond. D. FUNCTIONAL ARTBecause the city of San Luis Obispo is always maintaining and improving the public realm with infrastructure that citizens use daily, the city has a unique opportunity – to implement “SLO specific” designs in place of otherwise ordinary pieces of infrastructure. Functional art may be as simple as the creation and implementation of a “SLO crosswalk” or as complex as the re-design and replacement of all existing street lights to “SLO-centric street lights.” A vast array of other options for functional art installations exists, from bike racks, trashcans and street furniture, to transit stops, storm drains, manholes, and way-finding signs. By leading the effort to integrate San Luis Obispo designs into public projects, the City incites developers and private property owners to also integrate “SLO Functional Art” into their properties and developments. 19.b Packet Pg. 387 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 40 3. WHERE Public art in San Luis Obispo should continue to be accessible to community members in their daily lives. Taking public art to the people means integrating public art into daily routines. From placing a mural near the grocery store to a creative bike rack by a restaurant to an interactive art piece in the park- public art should come to the community. FUTURE LOCATIONS Through this Plan’s public engagement process, potential locations were identified for new public art. The locations were categorized into five different types explained in greater detail below. It is recommended that a prioritized location list under the categories of: well-traveled public right-of-way, Downtown, Parks, unexpected places, and gateways be created during the span of this Plan using the City’s adopted Public Engagement and Notification (PEN) manual process. The locations will focus on the following areas: A. WELL TRAVELED PUBLIC RIGHT-OF-WAYSThese are the places in the community that are highly visible where the day-to-day tasks of life often take place. These are busy intersections, well-traveled corridors, bike paths, bridges and overpasses. Public art at these locations will enhance the streetscape, adding vibrancy to a well-traveled route. Public art in these urban spaces should offer a connection between residents and their neighborhoods. It can be seating elements, art fences, decorative railings, murals or unique objects of art. Public Art in these places should continue to tell the story of San Luis Obispo in the tradition of building a vibrant, happy, active communities. 19.b Packet Pg. 388 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 41 B. DOWNTOWNIf neighborhoods are the front porch for public art, Downtown is the gallery. The artwork in Downtown should strengthen the pedestrian experience, should add interest on every corner and should strive to be world-class. When visitors come to SLO, Downtown is their home base. For residents it’s a meeting place, and the hub of activity. It is here that a majority of the City’s public art collection exists. In Downtown, public art can tell people that they are home or intrigue visitors to linger just a bit longer. It can be intimate, a small mural at eye level, a little paint on the sidewalk. C. PARKSParks are the corner stone of every community as these locations often provide residents with a safe, pedestrian friendly space where the community can come together, raise families, play, and recreate. Public Art in these locations can help create that attachment to one’s community. Public Art in parks can add to the aesthetics of place and often serve as the focal point for community gatherings. Art in parks can inspire health and activity. Sustainability, ecology, flora, fauna, and geology are all inspiring natural adornments. The cultures of those who came before us can come alive through art here. Art in our parks can pose a challenge to the artist, but the reward of such a momentous effort brings with it the opportunity to pause, meditate, and encourage us to reflect on the splendor of the landscape. 19.b Packet Pg. 389 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) LOVE NOTE TO SLO Eric Meyer 2015 D. IN UNEXPECTED PLACESResidents of San Luis Obispo have come to expect the unexpected. As traffic signal boxes have been a site for art murals for years, new art can continue to grow from that very same spirit. In a crosswalk, at the base of a tree, in a back alley; public art belongs there. This type of public art may last a day or even a few minutes. It is often added by community members expressing their connection to the community. It is playful, fun, and brings a smile. Art in these unexpected places should be encouraged. An example of such a surprising art piece can be the “unexpected shadow” of a parking meter. Don’t walk by too fast; you just might miss it! E. GATEWAYSThe landscape and geography of San Luis Obispo are unparalleled. The natural environment drives residents, businesses, and tourists to the rolling hills of our community. Though this is a powerful image, it does not alone communicate the story of San Luis Obispo. To make San Luis Obispo’s culture and values known to all those who enter our community, entry points to the City should have pieces of art that reflect the civic identity. The following is a list of future public art sites in public places. These potential locations will undergo a prioritization exercise. 42 19.b Packet Pg. 390 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 1. Broad Street and Pismo Street2. Bike Boulevard Islands at Osos street and Pacific Street3. Osos Triangle Park4. Mission Plaza at Broad Street (Dog Leg)5. San Luis Obispo City/County Public Library (Palm Street and Osos Street)6. Pismo Street and Chorro Street7. Higuera Street and Osos Street DOWNTOWN OPPORTUNITY LOCATIONS PARK LOCATIONS1. Laguna Lake Park2. French Park3. Islay Hill Park4. Sinsheimer Park5. Johnson Park6. Throop Park7. Anholm Park8. Laguna Hills Park9. Vista Lago Park10. Laguna Lake Golf Course 1. Dog Park Areas2. Community Gardens3. New Housing Developments UNEXPECTED LOCATIONS 1. Marsh Street and Highway 1012. California Boulevard and Highway 1013. Higuera Street and Marsh Street4. Highway 1 and Highland5. Highway 101 South and Grand/ Monterey GATEWAY LOCATIONS* TABLE 2: FUTURE PUBLIC ART LOCATIONS 43 1. South Higuera Street and Tank Farm Road2. South Higuera Street between Margarita Avenue and Chumash Drive3. Higuera Street between Walker Street and Pacific Street4. High Street and Broad Street5. South Street medians6. Tank Farm Road and Broad Street7. Foothill boulevard and California Boulevard8. Overpass at Santa Rosa Street and Highway 1019. Underpass at Chorro Street and Highway 10110. Bridge on Johnson Avenue at Pismo Street WELL TRAVELED PUBLIC RIGHT-OF-WAYS * These gateways are local on County property and would require a partnership with San Luis Obispo County for public art installations. 19.b Packet Pg. 391 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 44 4. WHEN The City’s Public Art Program will continue to evolve and develop through the implementation of this Public Art Master Plan. Short-term, medium term, and long-term implementation dates of the Master Plan goals and objectives are identified below covering the next ten years. It is recommended that the shorter term goals focus primarily on the most immediate and pressing needs of the public art program. As the public art collection is maturing, a focus on routine maintenance and minor repairs is critical in the near term. Key objectives recommended in the medium term of 3-5 years should focus on process improvements. New and creative funding models intended to support the growth and enhancement of the City’s public art program should be explored as a longer-term objective. A summary is the short, medium and longer term objectives over the next ten years is provided below. A. SHORT TERM OBJECTIVES (YEARS 1-3) The most immediate need of the public art program is the maintenance of the current collection. Through annual inspections, several public art pieces are showing signs of extensive wear and tear as well as the need for minor repairs. It is recommended that the short-term focus for public art be shifted to that of maintenance of the existing 76 artworks within the collection. Public Art minor capital projects addressing urgent repairs will be recommended in the 5-year capital improvement program to resolve these immediate needs. In addition to the deferred maintenance and repairs, annual funding in support of routine preventative maintenance activities (such as cleanings) will be requested through the City’s financial planning process towards routine and preventative needs of the artwork, in addition to larger significant repairs. It is hoped that the attention to maintenance will reduce significant and costlier future repair needs. The Public Art Program may wish to develop a sponsorship program or the use of volunteer with its maintenance needs. In addition to maintenance, the public art program can get a cheap and easy injection of energy through the expansion of temporary public art projects such as expansion of the Box Art Program. The Box Art Program is a popular public art program in San Luis Obispo as has recently expanded to thirty-nine of the sixty-four city-owned traffic signal cabinets. It is recommended that a shorter-term focus be on expanding the Box Art program over the next three years. Public Art funding should be allocated toward expansion of this existing temporary public art program. The Parks and Recreation Department should continue its public engagement efforts regarding public art through the use of social media outlets. It is recommended that the Public Art program focus in the short term on outreach strategies to increase awareness of the program. This can be done through the use of marketing materials, enhancing partnerships and maximizing the use of existing technology with minimal funding commitments. 19.b Packet Pg. 392 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 45 B. MEDIUM TERM (YEARS 4-6)In addition to continuing the immediate needs, actions for the medium-term priorities in years four to six should include a complete evaluation of a dedicated public art staffing resource, a streamlining and on-line reporting tools for maintenance needs, an evaluation of current public art policies and development review processes and an exploration of arts collaboration opportunities with other cities. Currently the Public art program does not have a dedicated staffing resource for public art. To accomplish these recommendations, sustain and elevate the public art program, a dedicated resource is needed. It is recommended that a full study is completed to determine the appropriate staffing resources to be dedicated towards this program. The Public Art Program should continue to develop longer-term maintenance plans for incorporation in the five-year Capital Improvement Program, it is recommended to maximize the use of volunteers and explore a sponsorship program to help with routine maintenance needs as a way to stretch maintenance funding. A streamlining of current public art process to encourage participation from developers, artists, designers and eliminate duplicative steps in the review process is recommended in the medium term. It is recommended that a public art liaison in the community development department be assigned to assist developers about their public art options early on in the process, to incorporate public art in the design. The creation of catalogs and artist directories could also assist in this process. C. LONG TERM (YEARS 6-10)In addition to the priorities listed above, longer-term priorities for public art should explore creative partnerships and unique way to increase of funding to the program and ensure the financial stability of the public art program for the future. To grow the public art program and ensure its financial sustainability, an evaluation of the current funding ordinances and exploration of new and creative funding models is recommended. Table 3 outlines the implementation schedule for the Public Art Master Plan objectives over the next ten years is provided on the following pages. 19.b Packet Pg. 393 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 46 Short Term 2017 2018 2019 Objectives Year 1 Year 2 Year 3 Shorter Term1.1 Increase visibility of the City’s public art by maintaining a current and comprehensive collection inventory and publicizing it through the City’s website x 2.1 Inspect art pieces within the current collection annually to identify immediate maintenance and minor repair needs x 2.2 Prioritize public art funding for the maintenance and immediate repairs of the current collection x 4.1 Maximize each public art funding dollar by encouraging affordable temporary semi-permanent art installations such as Box Art, construction site murals or weekly Farmer’s Market pop-up art x 1.2 Maximize and expand upon existing arts-related partnerships including those with Arts Obispo, SLO Museum of Art, Cuesta College Fine Arts and Cal Poly Arts Program x 1.3 Maximize the use of public art volunteers in the celebration of the collection by developing and sharing with the community, news outlets and publications, unique stories about each art piece x 2.3 Develop and implement a longer-term maintenance plan to account for cyclical maintenance needs and larger repairs in accordance with Best Management Practices for the care of public art, including consultation with the artist for significant repairs x 2.5 Maximize the use of volunteers for routine maintenance needs as projects considered for annual work days, such as LOVE SLO or Make a Difference Day x 1.4 Engage the community in an annual celebration of public art event with a creative and interactive public art experience such as a scavenger hunt or pop-up art event x 1.5 Elevate awareness of the program for residents and visitors through consistent and strategic messaging about the public art program in conjunction with existing promotional outlets of the TBID, Downtown Association and SLO Chamber of Commerce x TABLE 3: SHORT TERM OBJECTIVES 19.b Packet Pg. 394 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 47 Medium Term 2020 2021 2022 Objectives Year 4 Year 5 Year 6 Medium Term2.6 Simplify the online reporting of damaged art pieces by the public to aid City staff in identifying immediate repair needs x 3.1 Evaluate the development review and building permit process for public art. Implement identified process improvements. x 4.2 Seek diversity in the public art inventory by adding new art types, styles and mediums not currently represented in the collection x 4.3 Prioritize future locations for new public art types using a public engagement process x 5.1 Study the need for a dedicated staffing resource for the public art program x 2.4 Explore public-private sponsorships for maintenance through the establishment of a sponsorship program of individual art pieces x 3.2 Explore the need for a staff liaison in the Community Development Department to assist developers in the public art process in the pre-planning pre-submittal phase x 3.3 Create, and make available, an online catalog of pre- approved suitable art pieces and artists from which developers may select for typical development projects x 1.6 Explore regional arts-collaboration opportunities with other cities to learn about best practices and employ creative concepts for celebrating the public art program x 3.4 Integrate the City's purchase of previously constructed and completed art pieces and manage the installation of the same in both private development and public art projects x TABLE 3: MEDIUM TERM OBJECTIVES 19.b Packet Pg. 395 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 48 Long Term 2023 2024 2025 2026 Objectives Year 7 Year 8 Year 9 Year 10 Long Term4.4 Study public-private partnership opportunities such as citizen-driven funding, Federal and State grants, and partnerships with existing arts and tourism groups such as Arts Obispo, SLO Museum of Art and TBID to leverage funding opportunities for new art pieces x 5.2 Explore community partnerships for shared resources and programming x 4.5 Evaluate increasing the percentage of the City's general fund contribution from the current 1% of eligible capital project costs x 4.6 Evaluate increasing the maximum amount of the calculated development in-lieu fees currently capped at a maximum payment of $50,000 per development project x 5.3 Expand partnerships to Cal Poly and Cuesta College to create public art opportunities for their students x TABLE 3:LONG TERM OBJECTIVES 19.b Packet Pg. 396 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 49 ACKNOWLEDGMENTS With great appreciation we thank the City Council and the hundreds of community members and City Staff that gave their time and input in helping to create the Public Art Program’s roadmap for the future. We give special thanks to the following for their contributions in crafting an exciting future of public art. • San Luis Obispo City Council for their continued support of the City’s public art program• City Manager Katie Lichtig, City Manager• The 2015-16 Parks and Recreation Commission• City Departments and especially our Public Works Department Partners for their input• Arts Obispo• Local Artists• And most importantly, the people of San Luis Obispo who allow public art to enrich their lives and in turn make San Luis Obispo the place to be Prepared by: Designing LocalAmanda Golden Managing PrincipalDesigning Local Joshua LappPrincipal Designing Local www.designinglocal.com 19.b Packet Pg. 397 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 50 19.b Packet Pg. 398 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) APPENDIX 51 19.b Packet Pg. 399 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 52 S a n t a R o s a HigueraC a lif o r n i a Foothill SouthHigueraB r o a d M ontereyNorthChorro J o h n s o n M arshC a p itolioPrado In d u stria lSouth Orcutt LaurelPism oC h o r r o HighPalm Os o s ")") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") ") 2 4 3 7068 64 63 61 60 55 51 50 49 46 43 42 37 36 35 33 32 31 30 21 See Downtown Map 0 0.5 1Miles °N City of San Luis Obispo Public Art Map 2016 Perm anent Public Art ")Temporary Public Art APPENDIX APUBLIC ART LOCATIONS MAP * 19.b Packet Pg. 400 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 53 ")")")")")")")")")")")")")")")")")")")")")")")")")")")")LEFFCHORRO TORO ISLAYOSOS PISMOPALMMORROMILL MARSHBROADPEACH BUCHONPACIFICHIGUERANIPOMO SANTA ROSA HILL GARDEN BEACHWALNUT CHURCHMONTEREYDANABRI Z Z OL ARASANTA BARBARA MOUNTAIN VIEW101 N OFFRAI LROAD101 S ON JENNIFER 1 0 1 N ONACCESS ROAD S W AZEY ACCESS ROAD MONTEREY101 S ONBROAD OSO SCHURCH 101 N OFF101 S OFFBROAD HWY 1 0 1 1 0 1 N ON7 1 9 8 6 5 4 3 69 6766 65 63 62 61 59 58 57 56 54 53 52 50 48 47 46 45 44 43 41 40 39 38 34 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 0 250 500 750 1,000Feet°N City of San Luis Obispo Public Art Map 2016 Permanen t Public Art ")Temporary Public Art Downtown * Please find key (Table 1) in Chapter 2, Pages 20-21 19.b Packet Pg. 401 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 54 APPENDIX BESSENCE OF SAN LUIS OBISPO As a result of our extensive public engagement process, clear elements of what makes San Luis Obispo unique emerged. A major goal of the Public Art Master plan is to focus the program and inspire a new era using the spirit of San Luis Obispo. We’ve come to understand that spirit by asking the people of San Luis who we are and what is important to our community. This will facilitate a future of public art that is meaningful, locally-based and will resonate with residents. Whether a city-funded project, a new public art installation commissioned by the city, a private donation of art, a developer who wants to invest in San Luis Obispo, or a resident who wants to do something creative with their sidewalk, the following framework becomes a family of components that speak to the core of who San Luis Obispo is and who we want to be. If you are considering making art for our community, you can use this document to become inspired by the Community Character Framework of San Luis Obispo, and add “us” into all of your ideas. Any ideas for art- from traditional pieces placed in our historic neighborhoods to the avant-garde- can be created using our defining characteristics. We want the public art in our city to express the affection and pride we have for our community and to stand out among other cities as a community full of art that is exclusively San Luis Obispo. Art that speaks to us and art that tells our story to all those we draw near. These nine themes become a family of components that speak to the identity of San Luis Obispo as defined by the locals. Mix and match these elements into your designs. Choose to emphasize one element over another to accentuate what is most important to you and how you see your community. However creatively you interpret the components of the Community Character Framework, allow it to serve as a reflection of San Luis and as an inspiration to your creative process. Creating locally- inspired art using the Community Character Framework is supported by the Downtown Concept Plan: Draft Concept Design Principles. 1. Strong Identity : Preserve and enhance downtown’s distinct sense of place and memorable Character. 6. Arts, Culture and History: Encourage artistic and cultural opportunities and celebrate downtown’s unique history. 7. Innovative and Human Scale: Embrace original and compatible design that supports connections to the surrounding built environment, public realm and hillside views. 19.b Packet Pg. 402 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 55 A LITTLE COASTAL, A LITTLE COUNTRY OUR SEVEN SISTERS OUR BOUNTY WILD AND FREE WELCOMING OUR MISSION WARM INTENTIONAL AWE-INSPIRING 58 60 62 64 66 68 COMMUNITY CHARACTER FRAMEWORK 70 72 56 19.b Packet Pg. 403 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 56 WE ARE A LITTLE COASTAL, A LITTLE COUNTRY PROGRESSIVE HIDDEN GEM LAID BACK VITAL FAMILY GOOD VIBES 19.b Packet Pg. 404 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 57 WE ARE A LITTLE COASTAL, A LITTLE COUNTRY SAN LUIS OBISPO DEFINED: WE ARE A COMMUNITY WITH THE HEART OF A SMALL TOWN AND BRAIN OF A BIG CITY. A cosmopolitan mindset gracefully collides with the tight-knit feel of the central coast. Our vibrant but relaxed nature attracts newcomers from around the world. The wide variety of SLOcals adds to a diverse setting that’s good for everyone – from students to growing families and everywhere in between. We live the good life. WHAT ARE YOUR IDEAS?WHAT DOES A LITTLE COASTAL, A LITTLE COUNTRY LOOK LIKE TO YOU? WE CAN’T WAIT TO SEE WHAT YOU COME UP WITH! 19.b Packet Pg. 405 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 58 WE ARE OUR SEVEN SISTERS GENTLE JARRING REBIRTH LUSH VAS T PANORAMIC 19.b Packet Pg. 406 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 59 SAN LUIS OBISPO DEFINED: WE ARE A PLACE WHERE THE GEOGRAPHY STIRS THE IMAGINATION. Rolling hills, verdant pastures, and stunning views enliven the soul. In a place encircled by majestic features, everyday lives are shaped by their connection to nature. Each blade of grass or jagged stone is a reminder of the beauty that surrounds our community. WHAT ARE YOUR IDEAS?HOW DO OUR SEVEN SISTERS INSPIRE YOU? LET YOUR CONNECTION TO NATURE INFLUENCE YOUR NEXT PROJECT. 19.b Packet Pg. 407 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 60 WE ARE OUR BOUNTY VINEYARDS TRI-TIP SUNNY GENEROUS ABUNDANCE RIPE 19.b Packet Pg. 408 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 61 SAN LUIS OBISPO DEFINED: WE ARE A REGION THAT CULTIVATES OUR HARVEST TO SHARE AROUND THE GLOBE. An idyllic climate allows a rich variety of agriculture to provide a taste of the central coast to the nation and world. Whether taking a sip of our exquisite wine across town or across the country, the yield of our soil rings through. The fruitfulness of our agriculture means farm to table is less novel and more normal. WHAT ARE YOUR IDEAS?WHAT DOES OUR BOUNTY LOOK AND FEEL LIKE TO YOU? WE LOOK FORWARD TO YOUR INTERPRETATION! 19.b Packet Pg. 409 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 62 WE ARE WILD AND FREE HEALTH- CONSCIOUS TWO-WHEELED INTREPID INFLUENTIAL BOLD GUTSY 19.b Packet Pg. 410 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 63 SAN LUIS OBISPO DEFINED: WE ARE A CITY THAT LIVES AND BREATHES IN THE FRESH AIR. Another day, another audacious hike up a peaceful peak in our hometown. Here, we know life is best lived outside. When we lace up our shoes or put a foot to the pedal, we’re improving our world. We have what it takes. WHAT ARE YOUR IDEAS?THE PEOPLE OF SAN LUIS OBISPO ARE ONE-OF-A-KIND. YOUR ART SHOULD MAKE US SAY, “THAT IS SO SLO!” 19.b Packet Pg. 411 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 64 WE ARE WELCOMING HARMONIOUS YOUTHFUL FAMILIAR LIKE A BLANKET MAGNETIC RESTORATIVE 19.b Packet Pg. 412 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 65 SAN LUIS OBISPO DEFINED: WE ARE COMFORTABLE, YET OPEN TO NEW IDEAS. In our city, the energy of youth meets the passion of family and friends. You come as you are and you can be who you want to be. Here, you relax knowing all is well and tomorrow will all the magic of a new day. WHAT ARE YOUR IDEAS?HOW DOES OUR HOSPITALITY MAKE YOU FEEL? HOW CAN YOUR ART CONTINUE TO MAKE VISITORS FEEL WELCOME? 19.b Packet Pg. 413 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 66 WE ARE OUR MISSION CENTERED DEEP, DEEP ROOTS CHUMASH NOSTALGIC COMMUNAL BALANCED 19.b Packet Pg. 414 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 67 SAN LUIS OBISPO DEFINED: WE ARE GUIDED BY OUR DIVERSE PAST INTO OUR COLLECTIVE FUTURE. Our history is as solid as the Spanish mission and as tightly woven as a Chumash basket. Through many cultures and backgrounds we’ve come together as one city. We know our place in the world. We celebrate who we are and where we come from. WHAT ARE YOUR IDEAS?HOW DO YOUR IDEAS ENCAPSULATE THE PAST BUT ALSO LOOK TOWARD THE FUTURE? 19.b Packet Pg. 415 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 68 WE ARE WAR M LEAFY ADOBE MAT TE EARTHY COMFORTING SUBSTANTIAL 19.b Packet Pg. 416 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 69 SAN LUIS OBISPO DEFINED: WE ARE A PLACE THAT REEKS OF SOIL AND SKY. Our colors are rich, deep, and full of life. They speak of crisp nights and breezy afternoons, and fade from green to gold. They are of the solid earth, the ocean wave, and the vastness that surrounds. They enliven our existence. WHAT ARE YOUR IDEAS?WE ARE EXCITED TO SEE WHAT INSPIRES YOU OUT OF OUR COLOR PALETTE. THE POINT IS NOT TO BLEND IN, BUT TO ENHANCE. 19.b Packet Pg. 417 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 70 WE ARE INTENTIONAL PROTECTIVE PASSIONATE ENGAGED SOPHISTICATED RESPONSIBLE ALIVE 19.b Packet Pg. 418 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 71 SAN LUIS OBISPO DEFINED: WE ARE A CITY WHERE ACTION HAS MEANING AND MEANING HAS ACTION. Here, intention is more than the goal of the day. We live focused lives that result in balance. Health, well-being, and natural living go well past slogans. Our culture and environment make a difference. WHAT ARE YOUR IDEAS?HOW DOES BEING CENTERED IMPACT YOUR WORK? WE CAN’T WAIT TO SEE WHAT YOU COME UP WITH! 19.b Packet Pg. 419 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 72 WE ARE AWE-INSPIRING MAGNIFICENT VIVID DYNAMIC LOVE BREATHTAKING CENTRAL COAST 19.b Packet Pg. 420 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 73 SAN LUIS OBISPO DEFINED: WE ARE A PLACE WHERE THE INTERSECTION OF LANDSCAPE AND CULTURE IS JAW-DROPPING. In this place, you re-evaluate your own existence. You think of what could be, who you could be, the kind of life you want to live. The hills shake you back to life and fill you with energy and a desire to do good in the world. WHAT ARE YOUR IDEAS?WE HOPE YOU’RE HEART RACES WHEN YOU ARE IN SAN LUIS OBISPO. USE THAT EMOTION TO CREATE SOMETHING FOR US. 19.b Packet Pg. 421 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 74 • Interactive water, light sculptures that also teach about solar power, and recycling water • Kinetic art with recycled items, sculptures to reflect uniqueness of SLO • Animals and kids in sculptures, on murals, and in crosswalks • Giant chess game in Mission Plaza • Let’s make all of our new art skateable • Ocean murals to represent our coastal roots • Local sights incorporated into all of our art. • Art that embraces nature • Abstract vehicles • Light posts that shine words like love, move, live • Crosswalks that are encouraging or have funny sayings or even make everything mosaic • Miniature statue of important / honorable people like 3D prints about 9 inches in height distributed randomly around the town • Interesting walkways and benches in downtown incorporating the mountains in art • Art that people have to play on to make music • More sculptures should be placed everywhere! • Modern pieces with modern subjects • Murals of flowers found in other coastal communities in other countries • Pop-out sculptures or statues • Walls painted by the whole community so we can all feel like family • Art that needs many participants at the same time to work fully • Grown-up play grounds APPENDIX CCOMMUNITY-GENERATED PROJECT IDEAS WE ASKED THE COMMUNITY WHAT NEW IDEAS FOR PUBLIC ART THEY HAD. HERE’S WHAT THEY CAME UP WITH. 19.b Packet Pg. 422 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 75 • Obstacle courses that are made with art • I think we should put life size statues of people all over town. There can be a couple swinging their child or a man walking with a brief case • I would want to see more sculptures representing SLO • Abstract piece about the 7 sisters hills • Interactive art museums that teens could enjoy • Art for the homeless, made by them and made for them • Murals on the sides of buildings downtown • Mosaics in our wheelchair ramps in the sidewalks • Climbing wall on the side of our garage • Art kids can learn to climb on • Art that incorporates pull-up rigs in our parks • Sculpture that integrates music • An iconic piece of art that we can say is exclusively San Luis. • Statues of people that impacted San Luis. • Light art on any columns on buildings • Decorative walkways that are inviting for people to walk through • Crosswalks that change color when it rains and are only visible when it rains • Giant vibrant and colorful shapes to line our wider roads with large medians • Waterfall structures that invite people to play in them • Decorative doorways that open to our open spaces. • Pop-up art galleries in unexpected locations • Stairs that a message is incorporated into • Interactive water art that uses recycled water • Graffiti art as community murals • Participatory art that invites the community to answer a big question over a certain period of time. • Wayfinding signage that incorporate our healthy values and our love for art. 19.b Packet Pg. 423 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 76 • Paint our bike lanes different colors or allow artists to design a certain portion of the lane. • Bike stations that are artfully designed and say to visitors that we care about bikers and art. • 3D murals that have whimsical stories and content • Use the color green in our art so when we are in droughts, we remember our surroundings • Incorporate our industrial heritage into of our art • More temporary art that is out of character for San Luis Obispo. • Art on overpasses and any of our underpasses • More art on our bridges. Even art that is incorporated into the concrete pour. • Giant checkerboards in our parks • American Indian Icons, sculptures and murals • More interactive art in our skate park • Art that is made for our pets. One that teaches them how to get treats or to get water by interacting with the art • Kinetic sculptures that remind us we are all part of the natural setting that envelopes us • Signs designed by artists that show us a walking route to and from destinations. These will encourage walking and biking • A piece made with a bunch of skateboards • A large sculpture made from a bunch of half pipes • Gateways that let visitors know you have arrived in San Luis Obispo • Bike Racks that are placed all over the city and are designed by artists that live in that part of town • Art in our parks that we have to be active to see • A sculpture designed by students from the art department at S.L.O.H.S. and built by students in the welding/wood department. • Develop an artist billboard program that is similar to the utility box program • It would be really creative to incorporate almost an ever-lasting mural painting that ‘jumps from one building to the next all the way down the main street of downtown. Even if the paintings were swirling lines or quotes on the buildings lining the street it would incorporate a very unique side of SLO 19.b Packet Pg. 424 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 77 • Pictures of Sports • Art in our sidewalks • Art on our basketball rims and on our nets • Murals or sculptures in parking lots or out side of our stores • Tile murals around down town or just in the city • Mosaics or murals that send a message • Create something completely made out of vintage tin cans • Create murals on trees • Sculptures of garden gnomes and fairies • Living flowers that are all blue and are shaped like a whale • Art inspired by vintage dresses • Create a piece at Bishop’s Peak that depicts a person having a hard time climbing. • Sculptures in all of the grocery parking lots of things you find in groceries • Let each neighborhood choose a theme and develop art programming around the community selected theme • A walk-through photography exhibit that is placed throughout the town • Art displayed on our buses in a gallery format • Temporary art installation that allows visitors to have an understanding of the culture and history of San Luis • Paint the asphalt at Sunset Drive-in to have a movie theme that attendees would enjoy. • A glass shard sculpture that you could see a reflection of yourself would make a statement. • Put a slide down the mountains that we have to hike up to slide down. 19.b Packet Pg. 425 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 78 • A larger than life troll with crazy hair at an intersection that waves its hand. • Designate an empty wall or stretch of sidewalk for people to draw on with paint or chalk. • Place a cool antique lamp post that doesn’t work and serves no practical purpose but looks really sick in a random neighborhood. Move it every 3 months to a different neighborhood. • Develop an art trail for pedestrians and cyclists • Unstructured art playground for kids • Create an art walk program with the collection • Designate a district of container studios for artists, and host a studio tour quarterly. • Create a San Luis Obispo Maker Space that is run by the city • Invite national artists to display their work here for a specific amount of time. This will bring people from all over the world. 19.b Packet Pg. 426 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 79 19.b Packet Pg. 427 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 80 APPENDIX DCOMMUNITY WORKSHOP RESULTS WE ASKED THE COMMUNITY WHAT THEY THOUGHT ABOUT THE PUBLIC ART PROGRAM. HERE’S WHAT THEY HAD TO SAY. WHERE DO YOU TAKE VISITORS WHEN THEY COME TO TOWN? MY FAVORITE ACTIVITY INVOLVING ARTS AND CULTURE IN SLO IS… DOWNTOWN (INCLUDES MISSION PLAZA, BUBBLEGUM ALLEY, FARMER’S MARKET, CONCERTS AT THE PLAZA, THE ART MUSEUM AND THE CREEK WALK) ACTIVE OUTDOOR EXPERIENCES (INCLUDES HIKING, LOCAL BEACHES, PARKS, SLO SKATEPARK) SHOPPING WINERIES, MADONNA INN CAL POLY VARIOUS ACTIVITIES INCLUDING SPORTS GAMES, AT-HOME ACTIVITIES, AND CULTURAL EVENTS 55%: 39%: 2%: 2%: 1%: 1%: PUBLIC ART (INCLUDES UTILITY BOXES) PROGRAMMED ARTS ACTIVITIES CULINARY ARTS MUSEUMS AND GALLERIES PERFORMANCE ARTS ACTIVITIES ARTS OBISPO ACTIVITIES VARIOUS ACTIVITIES INCLUDING PAINTING AND VISITING STUDIOS 24%: 19%: 19%: 16%: 12%: 8%: 2%: 19.b Packet Pg. 428 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 81 A GREAT IDEA FOR EXPANDING THE SLO PUBLIC ART PROGRAM IS… EXPAND THE TYPES OF PUBLIC ART IN THE COLLECTION ENGAGE THE COMMUNITY AT A HIGHER CAPACITY INCREASE THE AMOUNT OF PIECES IN THE COLLECTION INCREASE PROGRAMMING PLACE MORE PUBLIC ART OUTSIDE OF DOWNTOWN PLACE PUBLIC ART IN UNEXPECTED PLACES 31%: 27%: 16%: 10%: 8%: 6%: THE SLO PUBLIC ART PROGRAM SHOULD FOCUS ITS GROWTH THROUGH… STRENGTHENING PUBLIC ART DOWNTOWN INCORPORATING PUBLIC ART INTO OUR WALKING / BIKING TRAILS PLACING PUBLIC ART OUTSIDE OF DOWNTOWN INCORPORATING PUBLIC ART INTO OUR PUBLIC FACILITIES PLACING PUBLIC ART IN PARKS PLACING PUBLIC ART IN OUR SHOPPING CENTERS PLACING PUBLIC ART AT MAJOR INTERSECTIONS 26%: 19%: 19%: 12%: 10%: 7%: 7%: 19.b Packet Pg. 429 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 82 THE SLO PUBLIC ART PROGRAM SHOULD FOCUS ON: WHAT KIND OF PUBLIC ART DO YOU WANT TO SEE MORE OF IN SLO? RANK TYPES IN ORDER OF PREFERENCE. INCORPORATING NEW PUBLIC ART TYPES INTO THE COLLECTION STRATEGIC PLACEMENT OF ART INCORPORATION OF SLO’S IDENTITY INTO OUR NEW ART ENGAGING THE COMMUNITY IN THE PUBLIC ART PROCESS EXPANDING THE PUBLIC ART COLLECTION SHOWCASING LOCAL ARTISTS 39%: 16%: 15%: 14%: 10%: 6%: MURALS, INCLUDING MOSAICS AND STREET ART MODERN ART INTERACTIVE ART 3D ART FUNCTIONAL ART, INCLUDING BENCHES, BIKE RACKS, TRASHCANS, LIGHT POLES LOCAL ART SHOWCASING LOCAL ARTISTS 38%: 22%: 17%: 14%: 11%: 6%: POP-UP AND TEMPORARY ART MURALS AND MOSAICS SITE SPECIFIC ART MODERN ART SCULPTURE ART GALLERIES AND MUSEUMS 23%: 19%: 16%: 15%: 14%: 13%: 19.b Packet Pg. 430 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 83 PARTNERSHIP OPPORTUNITIES 1. ARTS OBISPO 2. SAN LUIS OBISPO COUNTY UNIFIED SCHOOL DISTRICT 3. SAN LUIS OBISPO PUBLIC LIBRARY 4. SAN LUIS OBISPO CHAMBER OF COMMERCE 5. CAL POLY UNIVERSITY 6. CUESTA COLLEGE 7. CAL POLY CENTER FOR ENTREPRENEURSHIP AND INNOVATION 8. SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT 9. SAN LUIS OBISPO MUSEUM OF ART 10. SAN LUIS OBISPO HISTORY CENTER 11. LOCAL GALLERIES 12. SAN LUIS OBISPO COUNTY 13. REGIONAL CITIES 14. CALIFORNIA ARTS COUNCIL 15. REGIONAL FESTIVALS 16. SAN LUIS OBISPO LAND CONSERVANCY 17. OPERA SLO 18. SAN LUIS OBISPO LITTLE THEATER 19. SAN LUIS OBISPO FILM FESTIVAL 20. SAN LUIS OBISPO SYMPHONY 21. LOCAL ARCHITECTS 19.b Packet Pg. 431 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 84 19.b Packet Pg. 432 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 85 19.b Packet Pg. 433 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan) 86 19.b Packet Pg. 434 Attachment: b - Public Art Master Plan [Revision 1] (1514 : Adoption of Public Art Master Plan)