HomeMy WebLinkAbout05-01-2018 Agenda PacketTuesday, May 1, 2018
4:00 PM REGULAR MEETING Council Chamber
990 Palm Street
San Luis Obispo Page 1
CALL TO ORDER: Mayor Heidi Harmon
ROLL CALL: Council Members, Aaron Gomez, Andy Pease, Dan Rivoire,
Vice Mayor Carlyn Christianson and Mayor Heidi Harmon
PUBLIC COMMENT ON AGENDA ITEMS ONLY
PUBLIC HEARING ITEMS AND BUSINESS ITEMS
1.PUBLIC HEARING - REVIEW OF A COMMON INTEREST VESTING
TENTATIVE TRACT MAP NO. 3111 TO CREATE 30 RESIDENTIAL LOTS AND
AN HOA LOT ON THE PRATT PROPERTY, PARCEL 2 OF VESTING
TENTATIVE PARCEL MAP SLO-17-0127, WITHIN THE ORCUTT AREA
SPECIFIC PLAN WITH A STATUTORY EXEMPTION FROM
ENVIRONMENTAL REVIEW IN ACCORDANCE WITH GOVERNMENT CODE
SECTION 65457 (CODRON / COHEN – 45 MINUTES)
Recommendation:
Adopt a resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, adopting a Common Interest Vesting Tentative Tract Map No. 3111 to
Create 30 Residential Lots and an HOA Lot on the Pratt Property, Parcel 2 of Vesting
Tentative Parcel Map SLO-17-0127, within the Orcutt Area Specific Plan with a Statutory
Exemption from Environmental Review in accordance with Government Code Section
65457 (Sbdv-1225-2017),” as recommended by the Planning Commission.
San Luis Obispo City Council Agenda May 1, 2018 Page 2
2. PUBLIC HEARING - ROADWAY SEALING AND LAUREL LANE COMPLETE
STREETS 2018 PROJECT, SPECIFICATION NO. 91630 (GRIGSBY / NGUYEN – 45
MINUTES)
Recommendation:
1. Approve plans and specifications for the Roadway Sealing and Laurel Lane Complete
Streets 2018 Project, Specification Number. 91630; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the construction contract including the Base Bid
and Additive Alternatives if the lowest responsible bid is within the publicly disclosed
Funding Amount of $1,629,002.
ADJOURNED TO THE REGULAR MEETING OF MAY 1, 2018 TO BEGIN AT 6:00 PM
IN THE COUNCIL CHAMBER
San Luis Obispo City Council Agenda May 1, 2018 Page 3
6:00 PM
REGULAR MEETING
Council Chamber
990 Palm Street
CALL TO ORDER: Mayor Heidi Harmon
ROLL CALL: Council Members, Aaron Gomez, Andy Pease, Dan Rivoire,
Vice Mayor Carlyn Christianson and Mayor Heidi Harmon
PLEDGE OF ALLEGIANCE: Council Member Dan Rivoire
PRESENTATIONS
3. PRESENTATION - MAYOR'S AWARD TO LAGUNA MIDDLE SCHOOL
STUDENTS (HARMON – 10 MINUTES)
4. PRESENTATION - CHIEF CANTRELL - 2018 CONGRESSIONAL WOMEN OF
THE YEAR (CONGRESSMAN CARBAJAL – 5 MINUTES)
5. PRESENTATION - SLOCOG/RIDESHARE REGARDING BIKE TO WORK DAY
(MAY 18TH) AND BIKE TO SCHOOL DAY (MAY 9TH) (SLOCOG
REPRESENTATIVE WILLIAMSON – 5 MINUTES)
APPOINTMENTS
6. APPOINTMENT TO THE ACTIVE TRANSPORTATION COMMITTEE (ATC)
(HERMANN / PURRINGTON / GOODWIN – 5 MINUTES)
Recommendation:
In accordance with the recommendation of the Council Subcommittee, confirm the
appointment of Garrett Otto to the Active Transportation Committee to complete an
unexpired term through March 31, 2019.
San Luis Obispo City Council Agenda May 1, 2018 Page 4
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
Matters appearing on the Consent Calendar are expected to be non-controversial and will be
acted upon at one time. A member of the public may request the Council to pull an item for
discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of
the Council chooses another time. The public may comment on any and all items on the
Consent Agenda within the three minute time limit.
7. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
(PURRINGTON)
Recommendation:
Waive reading of all resolutions and ordinances as appropriate.
8. MINUTE OF APRIL 3, APRIL 10, AND APRIL 17, 2018 (PURRINGTON)
Recommendation:
Approve the Minutes of the City Council meetings of April 3, April 10, and April 17, 2018.
9. WATERLINE REPLACEMENT 2016 PROJECT, SPECIFICATION NO. 91436
(GRIGSBY / NGUYEN)
Recommendation:
1. Approve plans and specifications for the Waterline Replacement 2016 project,
Specification number. 91436; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the construction contract if the lowest
responsible bid is within the engineer’s estimate of $1,877,000.
San Luis Obispo City Council Agenda May 1, 2018 Page 5
10. CITY HALL CHILLER REPLACEMENT, SPECIFICATION NO. 91568 (GRIGSBY /
McGUIRE)
Recommendation:
1. Approve plans and specifications for “City Hall Chiller Replacement, Specification No.
91568”; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the contract if the lowest responsible bid is within
the Engineer’s Estimate of $150,000.
11. SOUTHWOOD AND ELLEN WAY DRAINAGE IMPROVEMENT,
SPECIFICATION NO. 91623 (GRIGSBY / NEMETH)
Recommendation:
1. Approve plans and specifications for the Southwood and Ellen Way Drainage Improvement
Project, Specification No. 91623; and,
2. Authorize staff to advertise for bids; and,
3. Authorize the City Manager to award the contract if the lowest responsible bid is within the
Engineer’s Estimate of $207,000.
12. RESOLUTION ACCEPTING A TAX EXCHANGE AGREEMENT WITH THE
COUNTY OF SAN LUIS OBISPO TO ADDRESS TAX TRANSFERS FROM THE
SAN LUIS RANCH ANNEXATION AREA; ANNEXATION NO. 80 (CODRON /
COREY)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, accepting a Negotiated Exchange of Tax Revenue and Annual Tax
Increment between the County of San Luis Obispo and the City of San Luis Obispo for the
San Luis Ranch Annexation Area, as Represented in the Staff Report and attachments dated
May 1, 2018.”
San Luis Obispo City Council Agenda May 1, 2018 Page 6
PUBLIC HEARING ITEMS AND BUSINESS ITEMS
13. COUNCIL COMPENSATION COMMITTEE RECOMMENDATIONS (HERMANN /
PURRINGTON – 20 MINUTES)
Recommendation:
As recommended by the Council Compensation Committee:
1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, setting new salaries for the Mayor and Council Members,”
increasing compensation by 10% for the Mayor and Council Members, effective the
first full payroll period in January 2019.
2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, increasing compensation for Architectural Review Commission
and Planning Commission Members” from $60 to $70 per meeting, not to exceed $280
per month, effective July 1, 2018.
14. CHANGES TO PURCHASING POLICIES FOR ENTERPRISE RESOURCE
PLANNING (ERP) IMPLEMENTATION (HERMANN / ERIKSSON / JATHANNA –
20 MINUTES)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, Updating the City’s Purchasing Policy Guidelines,” to amend purchasing
guidelines related to the implementation of the City’s new Enterprise Resource Planning
(ERP) financial system and to revise purchasing authority thresholds.
San Luis Obispo City Council Agenda May 1, 2018 Page 7
15. PUBLIC HEARING - CANNABIS OPERATORS’ PERMIT AND LAND USE
REGULATION ORDINANCE (CODRON / COHEN / RUSSELL – 120 MINUTES)
Recommendation:
1. Introduce an Ordinance entitled “An Ordinance of the City Council of the City of San
Luis Obispo, California, amending the Municipal Code to establish Zoning (Chapter
17) and Public Peace, Morals and Welfare (Chapter 9) regulations for commercial
cannabis businesses and personal cultivation, and determining that the amendments are
statutorily exempt from environmental review pursuant to business and professions
code section 26055 (H) (CODE-1058-2017).”
a. Creating “Chapter 9.10 - Cannabis Regulations” of the City’s Municipal Code,
repealing the current ban on commercial cannabis business activity and establishing
standards to protect public health and safety regulating personal cannabis
cultivation, cannabis business operators, and permitted cannabis business activities
in the City; and
b. As recommended by the Planning Commission, with modifications to personal
cultivation limits, creating “Chapter 17.99 – Cannabis” of the City’s Municipal
Code creating land use regulations for cannabis business activities, personal
cultivation, and providing for the creation of overlay zones where the proposed land
use regulations would apply.
2. Direct staff to return to the City Council with additional implementing measures,
including zoning map amendments for the proposed cannabis overlay zones, criteria
for the ranking of cannabis business operator applications, a fee schedule for
applications and annual licenses, and more information about a cannabis revenue
measure.
COUNCIL LIAISON REPORTS AND COMMUNICATIONS
Not to exceed 15 minutes) Council Members report on conferences or other City activities. At
this time, any Council Member or the City Manager may ask a question for clarification, make
an announcement, or report briefly on his or her activities. In addition, subject to Council
Policies and Procedures, they may provide a reference to staff or other resources for factual
information, request staff to report back to the Council at a subsequent meeting concerning any
matter, or take action to direct staff to place a matter of business on a future agenda. (Gov.
Code Sec. 54954.2).
San Luis Obispo City Council Agenda May 1, 2018 Page 8
ADJOURNMENT
The next Regularly scheduled City Council Meeting is scheduled for Tuesday, May 15, 2018 at
6:00 p.m. 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: 5/1/2018
FROM: Michael Codron, Community Development Director
Prepared By: Rachel Cohen, Associate Planner
SUBJECT: REVIEW OF A COMMON INTEREST VESTING TENTATIVE TRACT MAP
NO. 3111 TO CREATE 30 RESIDENTIAL LOTS AND AN HOA LOT ON
THE PRATT PROPERTY, PARCEL 2 OF VESTING TENTATIVE PARCEL
MAP SLO-17-0127, WITHIN THE ORCUTT AREA SPECIFIC PLAN WITH A
STATUTORY EXEMPTION FROM ENVIRONMENTAL REVIEW IN
ACCORDANCE WITH GOVERNMENT CODE SECTION 65457.
RECOMMENDATION
Adopt a resolution approving Vesting Tentative Tract Map (VTM) No. 3111 (Attachment A,
Draft Resolution), as recommended by the Planning Commission
REPORT-IN-BRIEF
The applicant, is requesting approval of Vesting Tentative Tract Map (VTM) No. 3111 on
property identified as the southern Pratt Property within the Orcutt Area Specific Plan (OASP),
to create 30 residential lots and one Homeowner Association (HOA) lot on Parcel 2 of Vesting
Tentative Parcel Map SLO-17-0127 located at 3750 Bullock Lane. The Planning Commission
recommended the City Council approve the subdivision as conditioned.
BACKGROUND
On March 28, 2018 the Planning Commission (PC) reviewed the proposed VTM No. 3111 and
voted 5:0:1 (Commissioner Fowler was recused from the item) recommending the City Council
approve the subdivision as conditioned in the resolution (see attachment B, PC Resolution). No
one from the public commented on the proposed subdivision. The Planning Commission
recommended the architectural review include the potential of having a toddler play area within
the subdivision.
PROJECT INFORMATION
The OASP and an associated Final Environmental Impact Report (FEIR) were approved and
certified in March 2010. The OASP designated the project site for medium-high density
residential development (R-3-SP). The project site (as part of the overall Specific Plan area) was
annexed into the City in 2012.
Site Data
Applicant Righetti Ranch LP
Representative Pam Ricci, RRM Design Group
Zoning R-3-SP
General Plan Orcutt Area Specific Plan (OASP), Medium-High Density Residential
Site Area 1.89 acres
Environmental
Status
Exempt from environmental review in accordance with Government Code
section 65457.
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Item 1
Site Information/Setting
The Orcutt Area Specific Plan (OASP) includes
230.85 acres located in the southeastern portion of
the City, bounded by Orcutt and Tank Farm
Roads, and the Union Pacific Railroad (UPRR)
tracks near Bullock Lane.
The Pratt Property is located along the western
edge of the OASP, immediately east of the Union
Pacific Railroad at 3750 Bullock Lane. Recent
subdivision approvals within the OASP include:
• Jones Ranch VTM No. 3066 (approved May
19, 2015)
• Righetti Ranch VTM No. 3063 (approved
May 19, 2015)
• Imel Ranch includes VTM No. 3095 (approved February 21, 2017)
• Pratt Property Vesting Tentative Parcel Map SLO-17-0127 (approved March 12, 2018) (see
Figure 2 below).
The site consists of non-developed land that has been used for storage with access via a dirt road
connected to Bullock Lane.
PROJECT DESCRIPTION
The proposed project is to create a common interest subdivision that includes 30 residential lots
and one Homeowner Association (HOA) lot on Parcel 2 of Vesting Tentative Parcel Map SLO -
17-0127 (Attachment C, Project Plans). The applicant is proposing to build townhomes that
would have shared driveways and guest parking spaces. The project will submit plans for
Figure 1: Approximate location of the Pratt property, Parcel 2 of Vesting Tentative Parcel Map SLO-17-
0127 indicated in black and the approximate locations of the Jones, Righetti, and Imel subdivisions.
Jones
Righetti
Pratt, Parcel 2
Imel
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Item 1
architectural review at a later date as allowed per the Subdivision Regulations.1
DISCUSSION
The project analysis summarized below focuses on the project’s consistency with the OASP and
the City’s Subdivision Regulations.
OASP Chapter 2: Conservation, Open Space, and Recreation
OASP Chapter 2 policies focus on protection of Righetti Hill, creeks, wetland habitats, and
visual resources, while introducing a variety of parks and recreational uses for the residents of
the Orcutt area. Figures 2.1 and 2.4 of the OASP show that the subject parcel does not contain
any wetland or creek areas and does not contain any areas that have been designated for open
space or parks.
Regarding recreation, the OASP does not identify any public park areas on the project site;
therefore, this project will contribute to the Public Facilities Financing Plan (PFFP) required by
the OASP, in the form of fee payments to contribute their fair share to park improvements
constructed on other properties in the Orcutt Planning Area.
OASP Chapter 3: Land Use and Development Standards
Proposed VTM No. 3111 includes medium-high density residential uses. Density assigned to the
Pratt Property under the OASP calls for between 49-55 residential units for the entire parcel.
Parcel 2 proposes 30 residential units, Parcel 1 will be dedicated for 54 affordable housing units,
and Parcel 3 will be required to have residential projects as part of a mixed -use development. At
30 units, the proposed subdivision of Parcel 2 will provide a substantial number of residential
units that will contribute to the projected residential densities for the site.2 The project would
comply with the cumulative density anticipated in the OASP.3
1 Subdivision Regulations Section 16.12.020(B)1: A statement that Architectural Review approval has been granted,
or a complete application for Architectural Review approval and plans have been filed which will be con currently
processed with the vesting tentative map for all buildings to be constructed on lots within the boundary of the
vesting tentative map. Tentative Maps that are part of a Planned Development Zoning application or are part of a
Specific Plan are exempt from this requirement.
2 Policy 3.1d notes that new subdivisions shall be designed to achieve at least the low range of units
3 OASP Table A-2 Development Potential by Landowner
Figure 2: Pratt Property Vesting Tentative Parcel Map SLO-17-0127; Parcel 2 is highlighted.
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Item 1
The Pratt property is connected to the Jones, Righetti, and Imel tracts in the OASP that have
proposed to meet their affordable housing requirements together.4 Attachment D is a signed
agreement outlining the number of affordable units and the dedication of Parcel 1 of the Pratt
Property for 54 affordable units and 9 affordable units on the Jones Tract to meet the affordable
housing requirements for all these subdivisions, including the subject VTM No. 3111.
OASP Chapter 4: Community Design
OASP Community Design Policies express a desire for a compatible mix of architectural designs
and include design standards for R-3 development. Architectural plans have not been provided
nor are required at this time. Condition No. 4 states that the project will require architectural
review prior to the submittal of building plans.
OASP Chapter 5: Circulation
The proposed subdivision includes roadway, sidewalks, pathways, and lot configurations
consistent with the OASP that are designed to encourage pedestrian connections and accessibility
within the site to other Orcutt neighborhoods. As conditioned, the project will establish a vehicle
and pedestrian access easement between Parcels 1, 2, and 3 to maintain vehicular and pedestrian
connections between all three parcels.
OASP Chapters 6 and 7: Public Utilities and Services
The preliminary on-site infrastructure plans proposed for VTM No. 3111 have been reviewed by
engineering, public works, and utilities staff and are adequate for serving the proposed project.
Policies directed at meeting fire codes, law enforcement, health, maintenance, transportation and
recycling will be applied during the building permit review, consistent with City codes and
regulations as outlined in the OASP.5
Subdivision Regulations
The applicant is requesting a common interest subdivision that includes easements for shared
driveways and parking spaces. Sheet L2 of the VTM provides project statistics regarding open
space requirements, common recreation facilities and storage requirements (Attachment C,
Project Plans). As proposed, the map is consistent with the subdivision regulations6 and includes
100 square feet of private open space and 200 cubic feet of storage space for each lot.
The subdivision regulations state that a common interest subdivision provide a minimum of
twenty square feet per unit of common indoor recreation facilities, or forty square feet per unit of
improved outdoor recreation facilities.7 The project site will be located directly across the street
from the OASP’s largest neighborhood park and just down the street from the a pocket park with
a community garden (see Figure 3). As noted in Section 3.1 above, the OASP requires fees to be
paid by the developer for the development of the parks identified within specific plan.8 The parks
in the OASP will provide a substantial amount of outdoor recreational space that will be within a
very short walking distance from the proposed subdivision. The payment of fees and the
4 Policy 3.3.2 requires minimum 10% moderate income and 5% low income affo rdable dwelling units
5 See OASP Chapter 7 Public Services
6 Subdivision Regulations Section 16.17.030 A-H.
7 Subdivision Regulations Section 16.17.030.E. Common Recreation Facilities.
8 OASP Table 8.3-Benefit Unit Classifications and Cost per Unit.
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Item 1
adjacency of the neighborhood park meets the intent of the Subdivision Regulation requirement
for common outdoor recreation facilities.
CONCURRENCES
The proposed project has been reviewed by the City Community Development (Planning,
Building, and Engineering), Public Works Department (Transportation), Utilities Department,
Fire Department, City Arborist, and Natural Resources Manager. Staff comments provided
during review of the proposed project are incorporated into the presented evaluation and
conditions of approval.
ENVIRONMENTAL REVIEW
The proposed project has been analyzed pursuant to Government Code 65457 that states:
a) Any residential development project, including any subdivision, or any zoning
change that is undertaken to implement and is consistent with a specific plan for
which an environmental impact report has been certified after January 1, 1980, is
exempt from the requirements of Division 13 (commencing with Section 21000) of
the Public Resources Code. However, if after adoption of the specific plan, an
event as specified in Section 21166 of the Public Resources Code occurs, the
exemption provided by this subdivision does not apply unless and until a
Figure 3: Excerpt of the Orcutt Area Specific Plan Map showing the location of the subdivision
site and the location of the neighborhood park.
Pratt Property
Parcel 2
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Item 1
supplemental environmental impact report for the specific plan is prepared and
certified in accordance with the provisions of Division 13 (commencing with
Section 21000) of the Public Resources Code. After a supplemental environmental
impact report is certified, the exemption specified in this subdivision applies to
projects undertaken pursuant to the specific plan.
b) An action or proceeding alleging that a public agency has approved a project
pursuant to a specific plan without having previously certified a supplemental
environmental impact report for the specific plan, where required by subdivision
(a), shall be commenced within 30 days of the public agency’s decision to carry out
or approve the project.
The proposed subdivision complies with Government Code 65457 because it is:
1. A subdivision for a residential project;
2. Consistent with the OASP;
3. No substantial changes have occurred as specified in Section 21166 of the Public
Resources Code; and
4. Located within a specific plan with a Final EIR that was certified on March 2, 2010 by
the City Council.
FISCAL IMPACT
The OASP anticipates subdivision and development of this property in a fashion similar to this
development proposal. The OASP and recently approved update to the OASP Public Facilities
Financing Plan (November 15, 2016) establish a detailed financing plan that is designed to
accommodate public infrastructure and parks for the Orcutt Area. As proposed and conditioned,
the Pratt subdivision map will implement OASP goals and policies by constructing necessary
infrastructure and parks consistent with the General Financing Policies and the OASP Public
Facilities Financing Plan.
ALTERNATIVES
1. Deny Common Interest Vesting Tentative Tract Map No. 3111. Staff does not recommend
this alternative, because the project complies with the Orcutt Area Specific Plan and
would help meet the City’s housing objectives. Findings of the City Council concerning
such a recommendation would require development of findings to support the
recommendation.
2. Continue the item. An action to continue the item should include a detailed list of
additional information or analysis required.
Attachments:
a - Draft Council Resolution
b - Planning Commission Resolution
c - Project Plans VTM 3111
d - Affordable Housing Agreement
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Item 1
R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADOPTING A COMMON INTEREST VESTING
TENTATIVE TRACT MAP NO. 3111 TO CREATE 30 RESIDENTIAL
LOTS AND AN HOA LOT ON THE PRATT PROPERTY, PARCEL 2 OF
VESTING TENTATIVE PARCEL MAP SLO-17-0127, WITHIN THE
ORCUTT AREA SPECIFIC PLAN WITH A STATUTORY EXEMPTION
FROM ENVIRONMENTAL REVIEW IN ACCORDANCE WITH
GOVERNMENT CODE SECTION 65457 (SBDV-1225-2017)
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
hearing on March 28, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, for the purpose of considering SBDV-1225-2017, a vesting tentative tract map
subdividing an approximately 1.89-acre site into 31 lots;
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
on May 1, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California,
for the purpose of considering SBDV-1225-2017, a vesting tentative tract map subdividing an
approximately 1.89-acre site into 31 lots;
WHEREAS, notices of said public hearing were made at the time and in the manner
required by law; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council adopts the
following findings in support of the project:
a) 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 and will be consistent
with the density and project amenities established by the Orcutt Area Specific Plan
(OASP).
b) The site is physically suited for the type and density of development allowed in the
medium-high density (R-3-SP) zone.
c) The design of the vesting tentative tract map and the proposed improvements are not
likely to cause serious health problems or substantial environmental damage since
further development or redevelopment of the proposed parcels will occur consistent
with Final EIR for the Orcutt Area Specific Plan and the required architectural review
process, which will allow for detailed review of development plans to assure
compliance with City plans, policies, and standards.
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Item 1
Resolution No. _____ (2018 Series) Page 2
R ______
d) The design of the subdivision is consistent with the pattern of development prescribed
in the Orcutt Area Specific Plan.
e) 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.
SECTION 2. Environmental Review. The project is statutory exemption from
environmental review in accordance with Government Code section 65457 because the
subdivision is:
a) For a residential project;
b) Consistent with the Orcutt Area Specific Plan;
c) No substantial changes have occurred as specified in Section 21166 of the Public
Resources Code; and
d) Located within a specific plan with a Final EIR that was certified on March 2, 2010 by
the City Council.
SECTION 3. Action. The City Council approves application SBDV-1225-2017 (VTM
No. 3111), a vesting tentative tract map to create up to 30 residential lots and one HOA lot, subject
to the following conditions:
Planning Division – Community Development Department
1. 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.
2. 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.
3. 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.
4. The project shall require architectural review to the satisfaction of the Community
Development Director.
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Item 1
Resolution No. _____ (2018 Series) Page 3
R ______
5. The project shall comply with the mitigation measures outlined in the Orcutt Area Specific
Plan EIR as approved by City Council in Resolution No. 10154 (2010 Series) prior to the
approval of building plan permits.
6. The proposed project was deemed complete on January 17, 2018 and as such, the impact fees
shall be paid at time of building permits through the Community Development Department per
the fee schedule in effect at the time the Vesting Tentative Map was deemed complete (adjusted
for CPI increases), unless the vesting rights have expired as set forth in Government Code Section
66498.5(b) through (d). If the vesting rights have expired, the fees shall be paid at the rate in effect
at time of building permits.
7. 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.
Engineering Division – Public Works/Community Development Department
Dedications and Easements
8. Any easements including but not limited to provisions for all public and private streets,
utilities, access, grading, drainage, slope banks, construction, 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 map, unless a deferral is requested by
the subdivider and granted by the City. Said easements may be provided for in part or in total
as blanket easements.
9. 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 street/intersection improvements.
10. Access rights shall be dedicated to the City along Tiburon except at approved driveway
locations and intersections as shown on the tentative map or as otherwise approved by the City.
11. The subdivider shall dedicate a 10’ wide street tree easement and 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.
12. 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 private pedestrian/bike paths, private open space, drainage systems, detention
basin(s), landscape, landscape irrigation, common areas, pocket parks, and linear park
improvements.
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13. A notice of requirements or other agreement acceptable to the Cit y 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 of approval related to
infrastructure phasing by others.
14. Off-site easements and/or dedications may be required to facilitate through street access and
public water and sewer main extensions beyond the tract boundary and in accordance with the
OASP. 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.
15. Off-site dedication/acquisition of property for this public right-of-way purpose may be
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).
16. 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. The 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 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
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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
17. 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. Building permits for combustible construction may be withheld
until adequate services and access are provided.
18. The improvement plans and on-site development plans shall include all final line-of-sight
analysis at driveways and 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.
Improvement Plans
19. 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. Off-site improvements may include but are not limited
to roadways, sewer mains, water mains, and storm drain improvements.
20. The developer shall clarify whether this subdivision will be providing a new set of subdivision
improvement plans to augment the approved Righetti Ranch subdivision improvement plans
or whether the Righetti Ranch plans will be revised to accommodate this specific development.
21. The improvement plan submittal shall include a complete construction phasing plan in
accordance with the conditions of approval. 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. Unless otherwise waived by the City Engineer, 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
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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.
22. The architectural plans and subdivision 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 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 Cit y Engineer.
Contact the Post Master at 543-2605 to establish any recommendations regarding the number,
size, location, and placement for any MBU’s.
23. Project addressing shall be established in conjunction with the subdivision improvement plans
and/or development plans. Private street naming, if proposed, shall comply with City standards
and addressing guidelines.
24. 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. The
subdivision improvement plans/landscape plans shall show all required street tree plantings
unless otherwise provided by others.
Utilities
25. 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 subdivision 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.
26. 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.
27. 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 subdivision
improvement plans.
28. 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 public streets
including Orcutt Road per City Engineering Standards.
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29. Private street lighting shall be provided along the private streets per OASP lighting
requirements, City Engineering Standard and/or as approved in conjunction with final
architectural approvals.
30. Lighting fixtures, including public streetlights shall not exceed 16’ in height in accordance
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. Private street
lights shall comply with OASP requirements and shall be approved to the satisfaction of the
Planning Division.
Grading, Drainage & Stormwater
31. 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.
32. 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.
33. 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. On
site accessibility shall be reviewed and approved to the satisfaction of the Building Official.
34. 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 are more
restrictive.
35. 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.
36. The subdivision improvement plans and/or the on-site development plans shall include a
drainage report to show compliance with the Drainage Design Manual, Post Construction
Stormwater Regulations, and OASP requirements. The report shall include pertinent
references to the Righetti Ranch master drainage report and improvements where applicable.
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37. 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.
38. The subdivider/developer shall provide notification to private property owners regarding any
individual maintenance responsibility of any non-HOA stormwater BMP’s in accordance with
Section E.2 of the RWQCB Resolution R3-2013-0032. The notification may be by Notice of
Requirements or other method acceptable to the City.
39. 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 any improvements proposed for location within the public rights-
of-way.
40. The final details for the proposed bioretention and private stormwater management facilities
along with any improvements located within the public right-of-way shall be approved to the
satisfaction of the City. 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.
41. The subdivider shall submit CC&R's with the Final Map that establishes a Homeowner's
Association (HOA). The HOA shall provide for the optional automatic annexation of the
subdivision proposed for Parcel 3 as it relates to any shared stormwater BMP’s, access, or
utilities. The CC&R's shall be approved by the City and shall be recorded prior to or concurrent
with recordation of the Final Map.
42. 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.
43. The final plans and drainage report shall show and note compliance with City Engineering
Standard 1010.B for spring or perched groundwater management and for water quality
treatment of run-off from impervious streets, drive aisles, parking areas, and trash enclosures.
44. 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.
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45. 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 Occurring Asbestos (NOA).
Transportation Division - Public Works Department
46. Parking bay and stall dimensions shall meet City Engineering Standards.
47. In future submittal for parkway landscaping design along Tiburon Road, street trees or other
landscaping exceeding 36” in height shall be located outside of sight distance triangle at site
driveways.
48. Project shall establish vehicle & pedestrian access easement between Parcel 1, 2 and 3. Final
maps shall include continuous sidewalk along the private drive aisle (shown in Street Section
C) extending to western parcel line to facilitate pedestrian connectivity between Parcel 1 and
Parcel 2.
Utilities Department
49. The final map shall include utility infrastructure in accordance with the engineering design
standards in effect during the time a building permit is obtained and shall have reasonable
alignments and clearances needed for maintenance.
50. The final maps shall include a sewer service study and additional off-site analysis of the
proposed sewer services. The study scope shall be established and approved to the satisfaction
of the Utilities Department. The study shall establish the minimum depth and pipe size of the
required sewer system.
51. Sewer flow rates and flow velocities shall comply with the requirements of the 2016
Wastewater Collection System Infrastructure Renewal Strategy.
52. Prior to issuance of a building permit, the development’s recycled water system shall comply
with the requirements of the 2017 Recycle Water Master Plans and service area requirements.
53. Water flow rates and flow velocities shall comply with the requirements of the 2016 Potable
Water Distribution System Operations Master Plan. The frontage improvements shall include
construction of a 12-inch water main along Bullock, and new service connections from the
existing water main along the Tiburon and Ranch House Road.
54. Final grades and alignments of all public and/or private water, recycled water, and sewer shall
be approved to the satisfaction of the Utilities Department. The final location, configuration,
and sizing of on-site service laterals and meters shall be approved by the Utilities Director in
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conjunction with the review of the building plans, fire sprinkler plans, and/or public
improvement plans.
55. Revisions to the existing sewer and water infrastructure, that may result from the proposed
project, shall be completed to the satisfaction of the Utilities Director to minimize impacts to
operations and maintenance of the services.
56. Management of refuse generations for waste, recyclables, and organics shall comply with state
law per AB 1826, and the local waste management ordinance to reduce greenhouse gas
emissions.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington, City Clerk
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N:\0301\0345-02-RS17-Pratt-Parcel-Entitlement-Civil\Planning\Landscape\AutoCAD\LP-0345-02-RS17.dwg, SHEET TITLE, Dec 21, 2017 3:42pm, akschmitzDECEMBER 22, 2017 PRATT PROPERTYVesting Tentative Tract Map, City of San Luis Obispo0feet401"=20' 2060PRELIMINARY LANDSCAPE HYDROZONE PLANL1LOW WATER USE (14,501SF)HYDROZONE LEGENDMODERATE WATER USE (3,933 SF)LID TREATMENT AREAS (7,351 SF)MAIL KIOSKWATER USE CALCULATIONSBIKE RACKS (5), TYP.BIKE RACKS (5), TYP.TRASH ENCLOSURE, TYP.TRASH ENCLOSURE, TYP.HARDSCAPE (IMPERVIOUS)TOTAL ON-SITE LANDSCAPE AREA: 25,785 SFTOTAL LANDSCAPE AREA WITH PLANT MATERIALS REQUIRING LOW WATER USE USE: 21,852 SFTOTAL LANDSCAPE AREA WITH PLANT MATERIALS REQUIRING MODERATE WATER USE USE: 3,933 SFTOTAL LANDSCAPE AREA WITH PLANT MATERIALS REQUIRING HIGH WATER USE USE: 0 SFMAXIMUM ANNUAL APPLIED WATER ALLOWANCE:MAWA: 364,901 GALLONS / 487 UNITSESTIMATED TOTAL WATER USE: 206,124 GALLONS / 275 UNITSTHIS PROJECT USES 56% OF THE MAXIMUM ANNUAL APPLIED WATER ALLOWANCE.THE IRRIGATION DESIGN WILL COMPLY WITH THE LOCAL AND STATE WATER CONSERVATIONREQUIREMENTS SET FORTH IN THE MODEL WATER EFFICIENT LANDSCAPE ORDINANCE (MWELO).THE WATER CONSERVATION METHODS INCLUDE UTILIZING A MAJORITY OF LOW WATER PLANTMATERIALS AND IMPLEMENTING EFFICIENT IRRIGATION METHODS, BELOW.A WEATHER SENSING, 'SMART CONTROLLER' WILL BE USED TO MONITOR IRRIGATION ANDMANAGE DAILY WATER CONSUMPTION FOR THE MINIMUM REQUIREMENTS OF EACHHYDROZONE. SCHEDULE WILL BE BASED ON PLANT NEEDS, SOIL TYPE, SLOPE AND SEASON.ALL TREES, SHRUBS, POTS, AND GROUNDCOVER AREAS WILL BE IRRIGATED ON SEPARATEHYDROZONES, SO THAT ONCE ESTABLISHED, WATER CAN BE REGULATED IN A MORE EFFICIENTMANNER.TREES AND POTTERY WILL BE IRRIGATED BY BUBBLERS. ALL OTHER PLANTING WILL RECEIVE DRIPIRRIGATION WHERE WATER CAN BE APPLIED ACCURATELY TO THE ROOTS AT A RATE THAT IT CANINFILTRATE TO IMPROVE IRRIGATION EFFICIENCY.IRRIGATION DESIGN CRITERIA & COMPLIANCEAPN 053-061-053APN 004-705-015APN 004-706-007LANDSCAPE IN PARKWAYS PROVIDED IN SEPARATE SUBMITTALSCREENING TREES, TYP.SHADE TREE TYP.FLOWERING TREE, TYP.SCREENING TREES, TYP.NOT A PARTNOT A PARTPacket Page 42Item 1
N:\0301\0345-02-RS17-Pratt-Parcel-Entitlement-Civil\Planning\Landscape\AutoCAD\OS-0345-02-RS17.dwg, SHEET TITLE, Dec 22, 2017 10:41am, akschmitzDECEMBER 22, 2017 PRATT PROPERTYVesting Tentative Tract Map, City of San Luis ObispoIHHW
SITE OPEN SPACEL2COMMON OPEN SPACE LEGENDPRIVATE OPEN SPACE 100 SF MIN200 CF MINNOT A PARTNOT A PARTSTORAGETYPICALDWELLINGUNITCOMMON RECREATION FACILITIES TO BE PROVIDED IN RIGHETTI NEIGHBORHOOD PARK ON ADJACENT PROPERTY.*cubic feet6,000 cubic feetPacket Page 43Item 1
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(a)"Affordable Housing Rental Restriction Agreement"means the
Affordable Housing Rental Restriction Agreement and Declaration of Restrictive Covenants
executed by Owner encumbering the Dedication Property.
Section 1.1. Definitions. In addition to terms defined elsewhere in this Agreement, the
following terms have the following meanings in this Agreement:
ARTICLE 1.
DEFINITIONS AND EXHIBITS
NOW, THEREFORE,the Parties agree and acknowledge that the above recitals are true
and accurate, and are incorporated into this Agreement by this reference, and the Parties mutually
acknowledge and agree as follows:
AGREEMENT
F. Pursuant to the Inclusionary Housing Ordinance and the Affordable Housing
Standards, the Owner is required to sell the designated Affordable Units in Jones (Tract 3066) to
buyers frommoderate incomehouseholds (the "Initial Buyers")andto executecertain documents
with each Initial Buyer that will restrict the sales price to maintain the affordability of the
Affordable Units or impose an equity-sharing program for a period of forty-five (45) years from
the date of sale to the Initial Buyer (the "Affordability Period").
E. Owner desires to satisfy the City's Inclusionary Housing Ordinance by: (1)
constructing and selling nine (9) units within Jones (Tract 3066) (the "Affordable Units")and in
conformancewith the salesprices andincomelimits establishedbythe City's"Affordable Housing
Standards" published by the City's Community Development Department to implement the
Inclusionary Housing Ordinance pursuant to Municipal Code Section 17.91.040 Band (2)
dedicating a portion ofland located at 3750 Bullock Lane, San Luis Obispo, APN: 053-061-024,
commonly referred to as the "Pratt Property," to People's Self Help Housing,Inc. ("PSHH"), for
the construction of at least fifty-four (54) affordable units. The Pratt Property is legally described
in ExhibitAincorporatedhereinby this reference. Theportion ofthe Pratt Propertyto be dedicated
to PSHH is generally depicted in Exhibit B incorporated herein by this reference. This property is
referred to herein as (the "Dedication Property.")
required affordable housing units. Land that is dedicated for the purpose of
developing affordable housing must be of sufficient size to construct at least the
number oflow and/or moderate income units required by the Inclusionary Housing
Ordinance for the project, plus 25% to accommodate the allowed density bonus.
When land is provided to meet the affordable housing requirement, all frontage
improvements and required off-site improvements shall be installed by the market-
rate housing developer. In general, land dedicated for affordable housing shall be
dispersed throughout subdivisions,instead of clustered. The requirement to
disperse affordable housing shall not be construed to prevent dedication of land
suitable for an affordable apartment project.
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Section 2.1. Construction of Affordable Units.The Parties have agreed that the Owner
shall construct and sell the Affordable Units, consisting of nine, two bedroom units within Jones
Tract 3066 in the approximate location shown and described on Exhibit C in conformance with
ARTICLE 2.
CONSTRUCTION OF TRACT 3066 (JONES) PROJECT AND AFFORDABLE UNITS
Phasing map of the Project including the Location of Affordable Units and
Schedule of Affordable Units in Jones (Tract 3066)
Exhibit C
Depiction of the Dedication Property.Exhibit B
Legal Description of the ProjectpropertiesExhibit A
Section 1.2."Moderate Income Household" is defined in the City of San Luis Obispo's
Affordable Housing Standards and means a household with a Household Income that does not
exceed 120%of the area median income as established by the California Department of Housing
and Community Development. Exhibits. The following exhibits are attached to this Agreement:
(i) "Phase I", "Phase 2", and "Phase 3" means the development phases of
the Project as shown on the phasing map hereto attached as Exhibit C.
Obispo.
(h) "Housing Authority" means the Housing Authority of the City of San Luis
(g) "Household Income" means the combined gross,pre-tax income of all
adult occupants of the applicant household.
(f)"Homebuyer/City Note" means the Occupancy,Resale,and Refinancing
Restriction Agreement, with Option to Purchase and Promissory Note Secured by Deed of Trust,
and executed by each Initial Buyer of an Affordable Unit.
(e) "Homebuyer/City Deed of Trust" means the Purchase Money Deed of
Trust, Deed of Trust Covenants, Assignment of Rents, Security Agreement and Fixture Filing,
executed by each Initial Buyer of an Affordable Unit that secures the Initial Buyer's performance
under the Homebuyer/City Note.
(d) "Eligible Household" means a household which has been determined by
the Housing Authority or other agency designated by the Director to be eligible to purchase an
Affordable Unit as a Moderate Income Household, in compliance with the Inclusionary Housing
Ordinance and this Agreement.
(c) "Director" means the Community Development Director of the City or
successor position.
(b) "Affordable Sales Price" means the maximum allowable sales price for an
Affordable Unit in effect at the time of its sale by the Owner to an Eligible Household, which is to
be calculated in accordance with the formula provided in the Affordable Housing Standards.
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(d) Once certified, Eligible Households shall submit purchase offers directly to
Owner, and Owner shall accept offers to purchase in the order received, provided that such offers
include a letter from the Housing Authority, or other agency designated by the Director, that the
buyer is an Eligible Household,a valid check for the required good faith deposit, and a preliminary
(c) The Owner agrees to retain the Housing Authority, or other agency
designated by the Director, for screening of potential purchasers to determine if they qualify as
Eligible Households.
(b) Owner shall actively market the Affordable Units, openly and in the same
general manner as the Project as a whole, allow prospective buyers to view the Affordable Units,
model units or floor plans,disclosure documents, and any other relevant sales materials, as may
be available.Owner's sales agents shall provide the same general quality of customer service to
the Affordable Unit buyers as provided to market-rate buyers, shall display information about the
availability of the Affordable Units in a readily noticeable manner in the sales office and/or Project
sales website, shall disclose the Affordable Unit restrictions to any prospective buyers in a timely
manner and direct potential purchasers to submit eligibility applications to determine if they
qualify as Eligible Households.
(a) Owner shall sell all the Affordable Units to Eligible Households at an
Affordable Sales Price as established by the City's Affordable Housing Standards and in
accordance with the City'S Affordable Housing Purchase Guidelines. The Affordable Sales Price
shall be the absolute maximum price that the Owner or any other seller may receive as
compensation for the sale of an Affordable Unit.
Section 3.1. Sale of Affordable Units by Owner to Eligible Households.
ARTICLE 3.
SALE OF AFFORDABLE UNITS
Section 2.4. Use of Affordable Units. The Affordable Units shall be sold only to Eligible
Households who will owner-occupy the Affordable Units as their primary place of residence.
Section 2.3. Design and Appearance of Affordable Units. The design, appearance, and
general quality of the Affordable Units shall be of the same character as the Project as a whole.
Section 2.2. Construction Timing. The Affordable Units shall be constructed in
proportion to construction of the other units in the Project pursuant to the schedule in Exhibit C.
No certificates of occupancy or final inspections shall be issued after the seventeenth (17th)unit in
the Project Phase 3 until certificates of occupancy or final inspections have been issued for the
nine Affordable Units unless an alternate phasing plan has been approved as part of the Project's
discretionary approvals.
the sales prices and income limits established for moderate income families as defined by the
City's Affordable Housing Standards. If, after recordation of this Agreement, Owner proposes to
change the location of any Affordable Unit within the Project, Owner shall submit a written request
for such change to the Director, who shall have sole discretion to approve or deny such request.
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(1) If an Affordable Unit is sold at fair market value with the City's written
consent as specified in subsection (k) of this Section, such Affordable Unit shall not be subject to
any requirements of this Agreement following City's receipt of applicable payment. Upon receipt
(k) If Owner has not received any purchase offer from an Eligible Household
for an Affordable Unit within one hundred eighty (180) days after the Affordable Unit has been
offered for sale, the Owner shall provide a one hundred eighty (180) days' notice to the City and
shall satisfy any further conditions that may be reasonably required by the City, including but not
limited to, further efforts to find an Eligible Household and/or additional marketing by the Owner
to attract an offer to purchase from an Eligible Household. If escrow has not closed on the
Affordable Unit salewithin an additional sixty (60) days from date of Owner's one hundred eighty
(180) days' notice, ifthe City consents in writing, such consent to not be unreasonably withheld, ,
Owner may sell the Affordable Unit at its fair market value and pay to the City an amount equal
to the difference between the actual contract sale price and the Affordable Sales Price. As an
alternative, if the parties mutually agree, Owner may sell the Affordable Unit to the City or the
City's designee for the Affordable Sales Price to satisfy Owner's obligations under this Agreement
with respect to such Affordable Unit.
G)Owner shall be independently responsible to make good faith efforts to
market and sell the Affordable Units in compliance with this Agreement, and shall cooperate with
City in good faith in the effort to sell the Affordable Units to Eligible Households in a timely
manner.
(i) Within five (5) days following the sale of any Affordable Unit by the Owner
to an Initial Buyer, Owner shall forward, or shall cause escrow officer to forward to the City,
copies of the buyer's and seller's settlement statement and all closing documents, including the
Homebuyer/City Note and Homebuyer/City Deed of Trust executed in connection with the sale.
(h) A Request for Notice of Default and Sale for the benefit of the City shall be
recorded for each deed of trust recorded at close of escrow.
(g) The escrow instructions for the sale of an Affordable Unit shall stipulate
that the Homebuyer/City Note and Homebuyer/City Deed of Trust shall be recorded against the
Affordable Unit at close of escrow on the sale to the Eligible Household; and that the
Homebuyer/City Note and Homebuyer/City Deed of Trust shall be recorded junior only to the lien
of the deed of trust securing the Eligible Household's first purchase money mortgage loan, or to a
second mortgage loan only if such loan is provided by a public agency which requires such
subordination, or as otherwise approved in writing by the City.
(f) Purchase contracts between Owner and Eligible Households shall include
requirements that buyers execute documents for the benefit of the City as described in Section 3.2
below.
(e) Selected applicants shall be responsible for obtaining their own financing
for the Affordable Units.
first mortgage loan approval. Owner shall conduct any additional screening of applicants deemed
necessary and not in violation of fair housing laws.
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Section 4.2. Land Dedication Timing. Prior to certificates of occupancy or final
inspections for the Project, Owner shall subdivide the Pratt Property in order to create the
Dedication Property as a legal lot pursuant to the Subdivision Map Act and City rules and
regulations. The Dedication Property shall be in substantial compliance with the depiction in
Exhibit B and of sufficient size to allow for at least fifty-four (54) affordable dwelling units. City
and Owner acknowledge that the OASP and recently updated Land Use Element ("LUE") of the
City's General Plan identify the Pratt Property as an R-3 zoned parcel. City and Owner
.acknowledge that City is in the process of updating its Zoning Code which includes the updated
zoning as set forth in the LUE. City and Owner further acknowledge that the timing of transfer of
theDedication Propertyas set forthherein willoccur aroundthe sametime whenthe Pratt Property
will be rezoned consistent with the LUE. Prior to the issuance of any certificates of occupancy in
Phase 2 of the Project, the Dedication Property shall be conveyed in fee simple absolute to PSHH
Section 4.1. Compliance with Inclusionarv Housing Ordinance. The Parties
acknowledge that, pursuant to Policy 3.3.4 of the OASP, Owner is dedicating the Low Income
Property to PSHH in order to partially satisfy Owner's affordable housing requirement related to
the Project. The Parties agree that should PSHH refuse or fail to accept the Dedication Property,
Owner shall be able to dedicate such land to another low-income housing developer approved by
the City.
SUBDIVISION OF PRATT PROPERTY AND DEDICATION OF THE LOW INCOME
PROPERTY
ARTICLE 4.
Section 3.3. Records. The Owner shall retain all records related to compliance with
obligations under this Agreement for a period not less than five (5) years from the date of
origination of such records, and make them available to City employees or others designated by
the City for inspection and copying on five (5) business days' written notice. The City shall be
entitled to monitor compliance with this Agreement, and the Owner shall cooperate with City
monitoring, including obtaining Eligible Household verification upon request of the City.
(c) Following sale of an Affordable Unit to the Initial Buyer, the Initial Buyer
shall be responsible for complying with the terms of this Agreement through the Homebuyer/City
Note and the Homebuyer/City Deed of Trust.
(b) The Initial Buyer SIgns a Homebuyer/City Deed of Trust in the form
prepared by the City.
(a) The Initial Buyer and the City execute a Homebuyer/City Note in the form
prepared by the City.
Section 3.2. Homebuyer Documents and Security Instruments. Prior to the sale of each
Affordable Unit, Owner shall ensure that:
of such payment, City shall provide Owner with a recordable document releasing the Affordable
Unit from this Agreement.
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Section 5.3. Default. Failure of the Owner to satisfy any of Owner's obligations under
the terms of this Agreement within thirty (30) days after the delivery of a notice of default from
the City will constitute a default under this Agreement and a violation of the Inclusionary Housing
Ordinance. In addition to remedies for breach of this Agreement, the City may exercise any and
all remedies available to it under the Inclusionary Housing Ordinance or other any other provision
of law or equity, including, but not limited to:
Section 5.2. Release of Property from Agreement. Upon the earlier to occur of (i) the
dedication of the Low Income Property to PSHH or another low income housing developer in
compliance with this Agreement;and (ii) the sale of 100% of the Affordable Units to Initial Buyers
from Eligible Households in compliance with the terms of this Agreement or (iii) the conclusion
of the Affordability Period, the entire Property shall be released from the burdens of this
Agreement and this Agreement shall be terminated.
Section 5.1. Covenants Running with the Land. The requirements of this Agreement
shall be covenants running with the land as defined in California Civil Code Section 1460,and
shall apply to the properties as shown and described on Exhibit A.Pursuant to Civil Code Section
1468, which governs such covenants, the provisions of this Agreement shall be binding upon all
Parties having any right, title, or interest in any of the properties described herein, or any portion
thereof and on their heirs, successors in interest and assigns for a period of forty-five (45) years.
The Parties agree that all future deeds or transfers of interest regarding the properties shall show
the restrictions of this Agreement for as long as the Agreement is in effect.
ARTICLE 5.
ENFORCEMENT
Section 4.3. Affordable Housing Agreement, Note. Prior to dedication of the Low
Income Property to PSHH, Owner shall record an Affordable Housing Rental Restriction
Agreement in a form subject to the written approval ofthe City requiring and securing performance
of: (i) the construction of at least fifty-four (54) affordable housing units on the Low Income
Property; and (ii) restricting the rental of at least fifty-four (54) housing units on the Low Income
Property to very low,low, and moderate income in accordance with the affordable housing
requirements for the Project.
free and clear of any liens and deeds of trust except as provided in Section 4.3. Owner shall, at
Owner's sole cost and expense, be responsible for constructing the Low Income Property to a
"super pad" condition which shall mean that the property will (i) be graded to construction
readiness without foundation or paving; (ii) all frontage improvements and offsite improvements
required to provide access and utilities to the Dedication Property including, but not limited to
streets, curbs, gutters, drainage and stormwater compliance associated perimeter streets runoff,
sidewalks, street lights,water mains, sewer mains,dry utilities; (iii) all water, sanitary sewer, and
treated storm water drainage, shall be stubbed and sized for the number of units proposed, to the
property line of the Dedication Property. All of the aforementioned improvements shall be
constructed to City standards at a size and location consistent with an approved tentative map for
the Pratt Property or, in absence of an approved tentative map, at a size and location consistent
with the OASP, unless otherwise approved by the City'S Public Work's Director.
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Section 6.1. Appointment of Other Agencies. At its sole discretion, the City may
designate, appoint or contract with any other public agency, for-profit or non-profit organization
to perform some or all of the City's obligations under this Agreement.
ARTICLE 6.
GENERAL PROVISIONS
Section 5.4.Attorney's Fees and Costs. If either Party takes or commences any actions
or proceedings, including litigation or arbitration, against the other by reason of any breach or
claimed breach of any provision of, or in any way connected with, this Agreement, or seeks a
judicial declaration of rights under this Agreement, the Party prevailing in such action or
proceeding shall be entitled to recover from the other Party the prevailing Party's reasonable
attorney's fees and costs, including, but not limited to, all expert witness fees, other witness fees
and associated expenses, whether or not the proceeding or action proceeds tojudgment.
For purposes ofthis Agreement, each affordable housing unit shallbe deemed complete at
such time as the unit has been certified for occupancy by the City of San Luis Obispo.
5.3 Failure to Construct Affordable Units or Dedication of Land.In the event that
Owner fails or refuses to construct the Affordable Units or dedicate the Low Income Property to
PSHH or another low-income housing developer approved by City, then City shall be entitled to
receive monetary damages for non-performance in an amount equal to (a)$6,900,000 being the
in-lieu fee that City would have been entitled to receive if no affordable housing units had been
constructed under this Agreement times (b) a fraction, the numerator of which is the number of
affordable housing units not completed under this Agreement and the denominator of which is
sixty-three (63) times (c) 3% interest per annum on monetary amount due. For purposes of this
Section 5.3(a), the term "affordable units not completed" shall include the fifty-four (54) units
proposed for the Dedication Property in the event Owner fails or refuses to dedicate suchproperty
to PSHH or another low-income housing developer approved by City.
(d) requiring the Owner or his/her successors in interest to the Property to pay
the City payment received by the Owner for the unauthorized sale of the Affordable Unit.
(c) where one or more persons have received financial benefit as a result of
violation of this Agreement, the City may assess, and institute legal action to recover as necessary,
a penalty in any amount up to and including the amount of financial benefit received, in addition
to recovery of the benefit received; and
(b) instituting against the Owner, or other parties, a civil action for declaratory
relief, injunction or any other equitable relief, or relief at law, including without limitation an
action to rescind a transaction and/or to require repayment of any funds received in connection
with such a violation;
(a) withholding, conditioning, suspending or revoking any approvals for the
Project, including without limitation final inspections for occupancy and/or the issuance of any
certificates of occupancy;
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1808\03\1834969.5 9
Ambient Communities Central LLC
179Calle Magdalena #201
Encinitas, CA 92024
WITH A COPY TO:
Attn: Dante Anselmo
Righetti Ranch LP
c/o Ambient Communities Central Coast LLC
979 Osos Street, Suite E
San Luis Obispo, CA 9340I
TO THE OWNER:
WITH COPY TO:
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attn: City Attorney
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401-3249
Attn: Community Development Director
TO THE CITY:
Section 6.3. Notices. All notices required pursuant to this Agreement shall be in writing
and may be given by personal delivery or by registered or certified mail, return receipt requested,
to the Party to receive such notice at the addressed set forthbelow:
Section 6.2. Hold Harmless. Owner will indemnify and hold harmless (without limit as
to amount) City and its elected officials, officers, employees and agents in their official capacity
(hereinafter collectively referred to as "Indemnitees"),and any of them,from and against all loss,
allrisk ofloss andalldamage (includingexpense and attorney'sfees)sustained or incurredbecause
of or by reason of any and all claims, demands, suits, actions, judgments and executions for
damages of any and every kind and by whomever and whenever made or obtained, allegedly
causedby, arising out of or relating in anymanner to the Project, the Affordable Units, or Owner's
performance or non-performance under this Agreement,including claims pursuant to California
Labor Code Section 1720et seq., and shall protect and defend Indemnitees, and any of them with
respect thereto, exceptto the extent arising fromtheproven grossnegligence or willfulmisconduct
of the City. The provisions of this Section shall survive expiration or other termination of this
Agreement or any release of part or all of the Property from the burdens of this Agreement, and
the provisions of this Section shall remain in full force and effect.
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1808\03\1834969.5 10
Section 6.11. Recording of Agreement. This Agreement shall be recorded against the
Property in the Official Records of the County of San Luis Obispo prior to the recordation of any
Section 6.10. Multiple Originals; Counterpart. This Agreement may be executed in
multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
Section 6.9. Title of Parts and Sections. Any titles of the sections, subsections, or
subparagraphs of this Agreement are inserted for convenience of reference only and shall be
disregarded in interpreting anypart of the Agreement's provisions.
Section 6.8. Waivers. Any waiver by the City of any obligation or condition in this
Agreement must be in writing. No waiver will be implied from any delay or failure by the City to
take action on any breach or default of Owner or to pursue any remedy allowed under this
Agreement or applicable law. Any extension of time granted to Owner to perform any obligation
under this Agreement shallnot operate as a waiver or release fromany of its obligations under this
Agreement. Consent by the City to any act or omission by Owner shall not be construed to be a
consentto anyotheror subsequentactor omissionorto waivetherequirement forthe City'swritten
consent to future waivers.
Section 6.7. Applicable Law.This Agreement shall be governed by California law.
Venue shall be the County of San Luis Obispo.
Section6.6.Amendment of Agreement. No changes, amendments, or alterations to this
Agreement shallbe effective unless inwriting and signedby all Partieshereto. Major amendments
to this Agreement, shallbe subjectto the review and approval of the decision-making body which
approved the Project. Minor amendments to this Agreement may be approved by the Director.
Upon approval, a new Agreement containing the amendments shallbe executed and recorded.
Section 6.5.Each Party's Role in Drafting the Agreement. Each Partyto this Agreement
has had an opportunity to review the Agreement, confer with legal counsel regarding the meaning
of the Agreement, and negotiate revisions to the Agreement. Accordingly, neither Party shall rely
upon Civil Code Section 1654 in order to interpret any uncertainty in the meaning of the
Agreement.
Section 6.4. Integrated Agreement. This Agreement sets forth the full and entire
understanding of the Parties regarding the matter set forth herein. Any other prior or existing
understandings or agreements by the Parties, whether formal or informal, regarding any matters
addressed within this Agreement are hereby superseded or terminated in their entirety.
Any notice shall be deemed delivered on the first business day that delivery is attempted or upon
receipt, whichever is sooner. As used herein, "business day" means any day other than a Saturday,
Sunday, or any state or federal holiday on which financial institutions in San Luis Obispo County
are authorized or required to close for observance thereof. Any Party may change the address to
which notices are to be sent by notifying the other Parties of the new address, in the manner set
forth above.
Attn: Robert Anselmo
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1808\03\1834969.5 11
Section 6.12. Severability. In the event any limitation, condition, restriction, covenant, or
provision contained in this Agreement is to be held invalid, void or unenforceable by any court of
competent jurisdiction, the remaining portions of this Agreement shall nevertheless be and remain
in full force and effect.
parcel map or final subdivision map or issuance of any building permit for the Project, whichever
occurs first.
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1808\03\1834969.5 12
Its:~'-D~-
Its:~emb/ _/ /
By:~~
Its:7 / ~
By:<:~L~)-
APPROVED AS TO FORM AND
LEGAL EFFECT:
By: Ambient Righetti Manager LLC,
a California limited liability company
Its: Generalpartner
City of San Luis Obispo, a California
charter city and municipal corporation
BYC...)JA~
Michael Codron, Community
Development Director
By:NRELLC,
a Delaware limited liability company
Righetti Ranch LP,
a Delaware limited partnership
CITY:OWNER:
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
as of the day and year first above written.
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1808\03\ 1834969.5
13
zz
}>
JESSICA LYN GIBSON
WITNESS my hand and official seaL
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that
the foregoingparagraph is true and correct.
On lv\;kl1 101 20 r1 .,before me,J.e/JS1~ti L.'4Il ~'\\):x:>n ,Notary
Public,personally appeared jV1 \t-h~e\Ud.Y't>Vl ,who proved to me
on the basis of satisfactory evidence to be the person~ whose namets) is/a~ subscribed to the
within instrument and acknowledged to me that he/sJfe/tlt6y executed the same in his¥r/t~ir
authorized capacityties), and that by his!¥r/t¥ir signature~ on the instrument the personys'),or
the entity upon behalf of which the person0 acted, executed the instrument.
COUNTY OF SA" Lilli?Obi?pO
)
)
)
STATE OF CALIFORNIA
A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness,accuracy,or validity of that document.
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1808\03\1834969.5
14
Notary Public
WITNESS my hand and official seal.
N~dr \\~B'ERTRA~;..Of
•Commission #2038021
~ ~Notary Public· California ~
Z San Luis Obispo County ~t...;.",Mr ~oT"lix~r:s2eg 16}%lLl
I certify UNDER PENALTY OF PERJURY under the laws of the State of Califomia that
the foregoing paragraph is true and correct.
On :Jut'-e.[I 2.0 (/ ,before me,L.A .f5en:7 ~D ,Notary
Public, personally appeared 'DAI\},E ANseLM 0 4 (~A-V(f FueAJte -z_,who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
)
)
STATE OF CALIFORNIA )
COUNTY OF ~,J Lvis D~is~o
A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document.
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APN 053-061-024
Southeasterly one half of Lot 133 of the San Luis Obispo Suburban Tract in the City of San Luis
Obispo, County of San Luis Obispo, State of California according to map filed in Book 1, Page 92
of Records of Survey in the Office of the County Recorder of said County
Real property in the City of San Luis Obispo, County of San Luis Obispo, State of
Califomia,described as follows:
LEGAL DESCRIPTION OF THE PROPERTY - PRATT
EXHIBIT A
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PORTIONS OF LOTS 129, 131 AND 132 OF THE SAN LUIS OBISPO SUBURBAN TRACT ACCORDING TO
THE MAP RECORDED FEBRUARY 7TH, 1906 AS FILED IN BOOK 1, AT PAGE 92 OF RECORD OF
SURVEYS IN THE OFFICE OF THE RECORDER FOR COUNTY OF SAN LUIS OBISPO, IN THE CITY OF
SAN LUIS OBISPO, STATE OF CALIFORNIA, AND ALL OF PARCEL 3 OF COAL 88-083 ACCORDING TO
THAT CERTIFICATE OF COMPLIANCE FILED IN BOOK 3181, AT PAGE 644 OF OFFICIAL RECORDS IN
THE OFFICE OF THE RECORDER FOR SAID COUNTY, MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
PARCEL C: (LOT 2 OF SLAL 15-0060- 2015-064258)(A.P.N.:004-706-007)
THENCE, CONTINUING ALONG THE NORTHEASTERLY LINE OF SAID PARCEL LAND CONVEYED BY
INDENTURE BETWEEN JOHN CHRISTENSEN AND JOSEPH D. GRANT, SOUTH 38° 50' 37" EAST, 455.88
FEET TO THE POINT OF BEGINNING.
THENCE, ALONG THE NORTHEASTERLY LINE OF SAID PARCEL LAND CONVEYED BY INDENTURE
BETWEEN JOHN CHRISTENSEN AND JOSEPH D. GRANT, SOUTH 38° 30' 37" EAST, 788.52 FEET TO
CORNER "C-4" AS DESIGNATED THEREIN;
THENCE, ALONG THE SOUTHEASTERLY LINE OF SAID LOT 128,NORTH 58° 00' 14"EAST, 870.62 FEET
TO THE NORTHERN MOST CORNER OF SAID LOT 129 ON THE NORTHEASTERLY LINE OF SAID
PARCEL LAND CONVEYED BY INDENTURE BETWEEN JOHN CHRISTENSEN AND JOSEPH D. GRANT
RECORDED FEBRUARY 6TH, 1906,FILED IN BOOK 69, AT PAGE 37 OF DEEDS IN THE OFFICE OF THE
RECORDER FOR SAID COUNTY;
THENCE, NORTH 31° 59' 46" WEST, 344.98 FEET TO THE SOUTHEASTERLY LINE OF LOT 128 OF SAID
SAN LUIS OBISPO SUBURBAN TRACT AS CONVEYED BY INDENTURE BETWEEN J. D. GRANT AND E.
F. G. SAKER FILED IN BOOK 74, AT PAGE 437 OF DEEDS INTHE OFFICE OF THE RECORDER FOR SAID
COUNTY;
THENCE, NORTH 88° 35' 31" WEST, 587.42 FEET;
THENCE, LEAVING THE SOUTH LINE OF SAID LOT 129,NORTH 66° 04' 22" WEST, 488.16 FEET;
THENCE, ALONG THE SOUTH LINE OF THE LAND CONVEYED BY SAID INDENTURE, BEING THE
SOUTH LINE OF LOT 129 OF SAID SAN LUIS OBISPO SUBURBAN TRACT, AND ALONG THE NORTH
LINE OF GOVERNMENT LOT 7 OF SAID SECTION 6 AS CONVEYED TO ALLEN E. RIGHETTI BY JOINT
TENANCY DEED RECORDED AUGUST 28TH, 1944, FILED IN BOOK 365, AT PAGE 457 OF OFFICIAL
RECORDS IN THE OFFICE OF THE RECORDER FOR SAID COUNTY, NORTH 88° 53' 32" WEST, 299.07
FEET;
A PORTION OF LOT 129 OF THE SAN LUIS OBISPO SUBURBAN TRACT ACCORDING TO THE MAP
RECORDED FEBRUARY 7TH, 1906AS FILED IN BOOK 1,AT PAGE 92 OF RECORD OF SURVEYS IN THE
OFFICE OF THE RECORDER FOR COUNTY OF SAN LUIS OBISPO, IN THE CITY OF SAN LUIS OBISPO,
STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A POINT
ON THE SOUTHERLY LINE OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER
(GOVERNMENT LOT 6) OF SAID SECTION 6, TOWNSHIP 31 SOUTH, RANGE 13EAST, MOUNT DIABLO
BASELINE AND MERIDIAN, MARKED BY A 2"X3" REDWOOD STAKE DESIGNATED AS CORNER "C-l"
AT THE MOST EASTERLY CORNER OF SAID SAN LUIS OBISPO SUBURBAN TRACT, BEING THE
SOUTHEAST CORNER OF THAT PARCEL OF LAND CONVEYED BY INDENTURE BETWEEN JOHN
CHRISTENSEN ANDJOSEPH D. GRANT RECORDED FEBRUARY6TH, 1906,FILED INBOOK69, AT PAGE
37 OF DEEDS IN THE OFFICE OF THE RECORDER FOR SAID COUNTY;
PARCEL B: (LOT 1OF SLAL 15-0060- 2015-064258) (A.P.N.: 004-706-006)
Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described as follows:
LEGAL DESCRIPTION OF THE PROPERTY - RIGHETTI TRACT 3063
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THENCE, SOUTH 370 57' 58" WEST, 57.90 FEET;
THENCE, SOUTH 32°38'22" WEST, 57.90 FEET;
THENCE, SOUTH 27018'45" WEST,57.90 FEET;
THENCE, SOUTH 21051'31" WEST, 59.43 FEET;
THENCE, SOUTH 10038' 54" WEST, 72.61 FEET;
THENCE, SOUTH 15034'28" EAST, 72.08 FEET;
THENCE, SOUTH 80 58' 46" EAST, 74.19 FEET;
THENCE, ALONG THE SOUTHEASTERLY LINE OF LOT 133 OF SAID SAN LUIS OBISPO SUBURBAN
TRACT AS CONVEYED BY INDENTURE BETWEEN J. D. GRANT, AND A. C.SHUSTER FILED IN BOOK
79, AT PAGE 389 OF DEEDS IN THE OFFICE OF THE RECORDER FOR SAID COUNTY,SOUTH 570 59' 25"
WEST,312.04 FEET; THENCE, LEAVING THE SOUTHEASTERLY LINE OF SAID LOT 133, SOUTH 320 00'
54"EAST, 874.62 FEET;
THENCE, ALONG THE SOUTHWESTERLY LINE OF THE WEST HALF OF LOT 127 OF SAID SAN LUIS
OBISPO SUBURBAN TRACT AS CONVEYED BY INDENTURE BETWEEN J.D.GRANT AND LOUIS T.
STEEN FILED IN BOOK 76, AT PAGE 472 OF DEEDS IN THE OFFICE OF THE RECORDER FOR SAID
COUNTY,NORTH 31°56' 57" WEST,462.34 FEETTO THE WESTERN MOST CORNERTHEREOF MARKED
BY A %INCH IRON PIPE WITH TAG STAMPED RCE 32981 AS SHOWN ON SAID MAP FILED IN BOOK 77,
AT PAGE43 OF RECORD OF SURVEYS;
THENCE, ALONGTHE SOUTHWESTERLYLINEOF SAID LOT 128,NORTH 320 02' 46" WEST,463.44 FEET
TO THE WESTERN MOST CORNER THEREOF MARKED BY A ONE INCH IRON PIPE WITH TAG
STAMPED LS2391 AS SHOWNONTHAT MAPFILED IN BOOK77, AT PAGE43 OF RECORDOF SURVEYS
IN THE OFFICE OF THE RECORDERFOR SAID COUNTY;
THENCE, ALONG THE SOUTHEASTERLY LINE OF SAID LOT 128,SOUTH 580 00'14"WEST, 444.97 FEET
TO THE SOUTHERN MOST CORNER THEREOF;
THENCE, LEAVING THE NORTH LINE OF SAID LOT 129, NORTH 660 04'22" WEST, 488.16 FEET;
THENCE, NORTH 880 35'31" WEST, 587.42 FEET; THENCE, NORTH 310 59'46" WEST,344.98 FEET TO
THE SOUTHEASTERLY LINE OF LOT 128 OF SAID SAN LUIS OBISPO SUBURBAN TRACT AS
CONVEYED BY INDENTURE BETWEEN J.D. GRANT AND E. F. G. SAKER FILED IN BOOK 74, AT PAGE
437 OF DEEDS INTHE OFFICE OF THE RECORDER FOR SAID COUNTY;
THENCE, ALONG THE SOUTH LINE OF THE LAND CONVEYED BY SAID INDENTURE, ALONG THE
SOUTH LINE OF LOT 129 OF SAID SAN LUIS OBISPO SUBURBAN TRACT,AND ALONG THE NORTH
LINE OF GOVERNMENT LOT 7 OF SAID SECTION 6 AS CONVEYED TO ALLEN E.RIGHETTI BY JOINT
TENANCY DEED RECORDED AUGUST 28TH, 1944, FILED IN BOOK 365, AT PAGE 457 OF OFFICIAL
RECORDS IN THE OFFICE OF THE RECORDER FOR SAID COUNTY, NORTH 880 53' 32" WEST, 299.07
FEET TO THE TRUE POINT OF BEGINNING;
COMMENCING AT A POINT ON THE SOUTHERLY LINE OF THE NORTHWEST QUARTER OF THE
SOUTHWEST QUARTER (GOVERNMENT LOT 6) OF SECTION 6, TOWNSHIP 31 SOUTH, RANGE 13 EAST,
MOUNT DIABLO BASELINE AND MERIDIAN, MARKED BY A 2"X3" REDWOOD STAKE DESIGNATED
AS CORNER "C-l" AT THE MOST EASTERLY CORNER OF SAID SAN LUIS OBISPO SUBURBAN TRACT,
AND MARKING THE SOUTHEAST CORNER OF THAT PARCEL OF LAND CONVEYED BY INDENTURE
BETWEEN JOHN CHRISTENSEN AND JOSEPH D. GRANT RECORDED FEBRUARY 6TH, 1906, FILED IN
BOOK 69, AT PAGE 37 OF DEEDS IN THE OFFICE OF THE RECORDER FOR SAID COUNTY;
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3. SOUTH 87° 36' 47" EAST, 92.75 FEET TO Al Y,INCH IRON PIPE WITH TAG STAMPED LS
5201 AS SHOWN ON SAID MAP FILED IN BOOK 14,AT PAGE 77 OF MAPS;
2. SOUTH 89° 04' 24" EAST, 107.76FEET TO Al Y,INCH IRON PIPE WITH TAG STAMPED LS
5201 AS SHOWN ON SAID MAP FILED IN BOOK 14,AT PAGE 77 OF MAPS;
1.SOUTH 88°IT 04" EAST, 198.73FEET TO Al Y,INCH IRON PIPE WITH TAG STAMPED LS
5201 AS SHOWN ON SAID MAP FILED IN BOOK 14,AT PAGE 77 OF MAPS;
THENCE, ALONGTHE NORTH LINEOF PARCEL 1OF COAL 88-083ACCORDING TO SAIDCERTIFICATE
OF COMPLIANCE FILED AS DOCUMENT NUMBER 1988-044493OF OFFICIAL RECORDS, SOUTH 88° 34'
52" EAST, 559.57 FEET TO A 1 Y,INCH IRON PIPE WITH TAG STAMPED LS 5201AS SHOWN ON SAID
MAP OF TRACT 1376;THENCE, CONTINUING ALONG THE NORTH LINE OF PARCEL 1OF COAL 88-083
ACCORDINGTO SAIDCERTIFICATE OF COMPLIANCE FILEDAS DOCUMENTNUMBER 1988-044493OF
OFFICIAL RECORDS THE FOLLOWING FIVE COURSES:
THENCE, ALONG THE NORTHEASTERN LINE OF THE SOUTHERN PACIFIC RAILROAD COMPANY
RIGHT-OF-WAY AS SHOWN ON SAID MAP OF THE SAN LUIS OBISPO SUBURBAN TRACT, SOUTH 32°
01' 59" EAST, 2072.21 FEET TO THE NORTH LINE OF PARCEL 1OF COAL 88-083 ACCORDING TO THAT
CERTIFICATE OF COMPLIANCE FILED AS DOCUMENT NUMBER 1988-044493 OF OFFICIAL RECORDS
INTHE OFFICE OF THE RECORDER FOR SAID COUNTY, AT THE NORTHWEST CORNER OF LOT 132OF
TRACT 1376ACCORDING TO THAT MAP, FILED IN BOOK 14,AT PAGE 77 OF MAPS IN THE OFFICE OF
THE RECORDER FOR SAID COUNTY, AS MARKED BY A RAILROAD SPIKE SHOWN ON SAID MAP
FILED IN BOOK 77, AT PAGE 43 OF RECORD OF SURVEYS;
THENCE, ALONGA LINETHAT LIES30.00 FEETOFFSET SOUTHEASTERLYAS MEASUREDAT A RIGHT
ANGLE FROM THE SOUTHEASTERLY LINE OF SAID LOT 133,SOUTH 57° 59' 25" WEST, 201.38 FEETTO
THE SOUTHWESTERLY LINE OF LOT 132 OF SAID SAN LUIS OBISPO SUBURBAN TRACT AS
CONVEYED BY INDENTURE BETWEEN J. D. GRANT AND L.J. BECKETT ET AL, FILED IN BOOK 75, AT
PAGE 328 OF DEEDS IN THE OFFICE OF THE RECORDER FOR SAID COUNTY, BEING A POINT ON THE
NORTHEASTERN LINE OF THE SOUTHERN PACIFIC RAILROAD COMPANY RIGHT-OF-WAY AS
SHOWN ON SAID MAP OF THE SAN LUIS OBISPO SUBURBANTRACT;
THENCE, NORTH 32° 00' 35" WEST, 5.92 FEET TO A POINT THAT LIES 30.00 FEET OFFSET
SOUTHEASTERLY AS MEASURED AT A RIGHT ANGLE FROM THE SOUTHEASTERLY LINE OF SAID
LOT 133;
THENCE, NORTH, ALONG A TANGENT CURVETO THE RIGHT WITH A 52.50 FOOT RADIUS, THROUGH
A CENTRAL ANGLE OF 58° 09' 47", AN ARC LENGTH OF 53.30 FEET;
THENCE, NORTH 29° 32' 22" WEST, 110.41FEET;
THENCE, NORTH 32° 00' 54" WEST, 856.87 FEET;
THENCE, SOUTH 87° 18' 08" WEST, 21.31 FEET;
THENCE, NORTH 32° 00' 54" WEST, 46.00 FEET;
THENCE, SOUTH 57° 59' 04" WEST, 69.30 FEET;
THENCE, NORTH 32° 06' 43" WEST, 90.22 FEET;
THENCE, SOUTH 60° 31' 34" WEST, 57.48 FEET;
THENCE, SOUTH 52°49' 18"WEST, 71.66 FEET;
THENCE, SOUTH 43°IT 35" WEST, 57.90 FEET;
Packet Page 61
Item 1
THENCE, SOUTH 57° 59' 04" WEST, 69.30 FEET;
THENCE, NORTH 32° 06' 43" WEST, 90.22 FEET;
THENCE, SOUTH 60° 31' 34" WEST, 57.48 FEET;
THENCE, SOUTH 52° 49' 18"WEST, 71.66 FEET;
THENCE, SOUTH43°IT 35" WEST, 57.90 FEET;
THENCE, SOUTH 37°51'58" WEST, 57.90 FEET;
THENCE, SOUTH 32° 38' 22" WEST, 57.90 FEET;
THENCE, SOUTH 27° 18' 45" WEST, 57.90 FEET;
THENCE, SOUTH 21° 51' 31" WEST, 59.43 FEET;
THENCE, SOUTH 10°38' 54" WEST, 72.61 FEET;
THENCE, SOUTH 15°34' 28" EAST, 72.08 FEET;
THENCE, SOUTH 8° 58' 46" EAST, 74.19 FEET;
THENCE, LEAVING THE NORTHWESTERLY LINE OF SAID LOT 132, SOUTH 32° 00' 54" EAST, 874.62
FEET;
THENCE, ALONGTHENORTHWESTERLY LINEOF SAID LOT 132,NORTH 57°59' 25" EAST, 745.92FEET;
PORTIONS OF LOTS 131AND 132OF THE SAN LUIS OBISPO SUBURBAN TRACT ACCORDING TO THE
MAP RECORDED FEBRUARY 7TH, 1906AS FILED IN BOOK 1,AT PAGE 92 OF RECORD OF SURVEYS IN
THE OFFICE OF THE RECORDER FOR COUNTY OF SAN LUIS OBISPO, IN THE CITY OF SAN LUIS
OBISPO, STATE OF CALIFORNIA, AND A PORTION OF PARCEL 3 OF COAL 88-083 ACCORDING TO
THAT CERTIFICATE OF COMPLIANCE FILED IN BOOK 3181, AT PAGE 644 OF OFFICIAL RECORDS IN
THE OFFICE OF THE RECORDER FOR SAID COUNTY, MORE PARTICULARLY DESCRIBED AS
FOLLOWS: BEGINNING AT THE MOST WESTERLY CORNER OF SAID LOT 132 OF THE SAN LUIS
OBISPO SUBURBANTRACT ASCONVEYED BYINDENTUREBETWEENJ. D. GRANTAND L.J. BECKETT
ET AL, FILED IN BOOK 75, AT PAGE 328 OF DEEDS IN THE OFFICE OF THE RECORDER FOR SAID
COUNTY, BEING A POINT ON THE NORTHEASTERN LINE OF THE SOUTHERN PACIFIC RAILROAD
COMPANY RIGHT-OF-WAY AS SHOWNON SAID MAP OF THE SAN LUIS OBISPO SUBURBAN TRACT;
PARCEL D: (LOT 3 OF SLAL 15-0060- 2015-064258) (A.P.N.: 004-706-008)
THENCE, ALONG THE NORTH LINE OF SAID GOVERNMENT LOT 7, SOUTH 88° 53' 32" EAST, 599.99
FEET TO THE TRUE POINT OF BEGINNING.
THENCE, LEAVING THE NORTHERN BOUNDARY OF SAID PARCEL 1 OF LOT LINE ADJUSTMENT
COAL 88-083, ALONG THE WEST LINE OF SAID SECTION 6, NORTH 01°IT 21" EAST, 1333.32
FEET TO THE NORTHWEST CORNER OF SAID GOVERNMENT LOT 7;
5. SOUTH 87° 53' 46" EAST, 10.35 FEET TO Al 1hINCH IRON PIPE WITH TAG STAMPED RCE
12545 MARKING THE SOUTHWEST CORNER OF SAID SECTION 6 AS SHOWN ON SAID MAP
FILED IN BOOK 14, AT PAGE 77 OF MAPS;
4. SOUTH 88° 29' 54" EAST, 267.67 FEET TO A 1 1hINCH IRON PIPE WITH TAG STAMPED LS
5201 AS SHOWN ON SAID MAP FILED IN BOOK 14, AT PAGE 77 OF MAPS;
Packet Page 62
Item 1
APN: 004-706-006, 004-706-007, 004-706-008
THENCE, ALONG THE NORTHEASTERN LINE OF THE SOUTHERN PACIFIC RAILROAD COMPANY
RIGHT-OF-WAY AS SHOWN ON SAID MAP OF THE SAN LUIS OBISPO SUBURBAN TRACT, NORTH 32°
01' 59" WEST, 30.00 FEET TO THE POINT OF BEGINNING.
THENCE, NORTH 32° 00' 35" WEST, 5.92 FEET TO A POINT THAT LIES 30.00 FEET OFFSET
SOUTHEASTERLY AS MEASURED AT A RIGHT ANGLE FROM THE SOUTHEASTERLY LINE OF SAID
LOT 133;
THENCE, ALONG A LINE THAT LIES 30.00 FEET OFFSET SOUTHEASTERLY AS MEASURED AT A RIGHT
ANGLE FROM THE SOUTHEASTERLY LINE OF SAID LOT 133, SOUTH 57° 59' 25" WEST, 201.38 FEET TO
THE SOUTHWESTERLY LINE OF LOT 132 OF SAID SAN LUIS OBISPO SUBURBAN TRACT AS
CONVEYED BY INDENTURE BETWEEN 1. D. GRANT AND L.1.BECKETT ET AL, FILED IN BOOK 75, AT
PAGE 328 OF DEEDS IN THE OFFICE OF THE RECORDER FOR SAID COUNTY, BEING A POINT ON THE
NORTHEASTERN LINE OF THE SOUTHERN PACIFIC RAILROAD COMPANY RIGHT-OF-WAY AS
SHOWN ON SAID MAP OF THE SAN LUIS OBISPO SUBURBANTRACT;
THENCE, NORTHERLY, ALONG A TANGENT CURVE TO THE RIGHT WITH A 52.50 FOOT RADIUS,
THROUGH A CENTRAL ANGLE OF 58° 09' 47", AN ARC LENGTH OF 53.30 FEET;
THENCE, NORTH 29° 32' 22" WEST, 110.41 FEET;
THENCE, NORTH 32° 00' 54" WEST, 856.87 FEET;
THENCE, SOUTH 87° 18' 08" WEST, 21.31 FEET;
THENCE, NORTH 32° 00' 54" WEST, 46.00 FEET;
Packet Page 63
Item 1
APN: Ptn of 004-705-013
LOT B OF TRACT 3066-PHASE 1,INTHE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO,
STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED DECEMBER 21,2016 IN BOOK 36, PAGES
41 THROUGH 45 OF MAPS.
PARCEL A: (A.P.N.: PORTION OF 004-705-013)
Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California,
described as follows:
LEGAL DESCRIPTION OF THE PROPERTY - JONES TRACT 3066
Packet Page 64
Item 1
APN: 004-706-010
Thence, South 58° 00' 14" West, 172.32 feet to the True Point of Beginning.
Thence, Westerly, along a tangent curve to the left with a 220.00 foot radius through a central
angle of 26° 20' 47", an arc length of 101.16 feet;
Thence, South 84° 21' 01" West, 124.60 feet;
Thence, Westerly, along a tangent curve to the right with a 280.00 foot radius, through a central
angle of 32° 52' 34", an arc length of 160.66 feet;
Thence, leaving said Northeasterly line, South 51° 28' 27" West, 79.85 feet;
Thence, along the Northeasterly line of that parcel of land conveyed by indenture between John
Christensen and Joseph D. Grant, filed in Book 69, at Page 37 of Deeds in the office of the
Recorder for said County, North 38° 30' 34" West, 338.13 feet;
Thence, along the Southeasterly line of said Lot 127, North 58° 00' 05" East, 636.22 feet to the
most Easterly corner of said Lot 127 of the San Luis Obispo Suburban Tract, said corner lying
North 58° 00' 05" East, 1.80 feet from a one inch iron pipe (illegible tag) shown on that Map filed
in Book 77, at Page 43 of Record of Surveys in the office of the'Recorder for said County;
Thence, South 31° 56' 58" East, 221.38 feet to the Southeasterly line of said Lot 127;
Thence, North 58° 03' 02" East, 19.53 feet;
Thence South 31° 56' 58" East, 210.92 feet;
Thence, leaving said common line, South 31° 56' 58" East, 30.00 feet to the True Point of
Beginning;
Thence, Northeasterly along the line common to said Lots 126 and 127, North 58° 00' 14" East,
607 .36 feet;
Commencing at the most Westerly corner of said Lot 127 of the San Luis Obispo Suburban Tract
as conveyed by indenture between Joseph D. Grant and F.P. Hottle, filed in Book 73, at Page 173
of Deeds in the Office of the Recorder for said County, marked by a 314 inch iron pipe with tag
stamped RCE 32981 as shown on that Map filed in Book 94, at Page 91 of Record of Surveys in
the office of the Recorder for said County, said corner being the most southerly corner of Lot 126
as said Lot is shown on the above described Map of the San Luis Obispo Suburban Tract;
Portion of Lot 127 of the San Luis Obispo Suburban Tract according to the Map recorded
February 7th, 1906 as filed in Book 1, at Page 92 of Record of Surveys in the Office of the
Recorder for County of San Luis Obispo, in the City of San Luis Obispo, County of San Luis
Obispo, State of California, more particularly described as follows:
(Lot 2 of SLAL 15-0104 - 2016-043143)
Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California,
described as follows:
Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California,
described as follows:
LEGAL DESCRIPTION OF THE PROPERTY - IMEL TRACT 3095
Packet Page 65
Item 1
A copyof this map is_ai/able at the City ofSa" LuisObispoCommunity DevelopmentDept,
13~o:cz~oI-
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;:--- 'I~."~.'-.'. ''.\--"','~~,~,,.EXHIBITB Packet Page 66Item 1
,\ Copy of thi: map islU'lJilabieat the City of Sail Luis Obispo Community Development Dept.
o
EXHIBIT CPHASING MAP OF RIGHETTI RANCH, JONES, AND IMEL [ SHOWING LOCATIONOF AFFORDABLE UNITS]Packet Page 67Item 1
A copy of this map is availablefor review at the City of San Luis Obispo CommunityDevelopment Department
Location of
nine moderate
income, two
bedroom units
MAP SHOWING LOCATION OF AFFORDABLE UNITS TO BE BUILT ON JONES
Packet Page 68
Item 1
Meeting Date: 5/1/2018
FROM: Daryl R. Grigsby, Director of Public Works
Prepared By: Hai Nguyen, Engineer II
SUBJECT: ROADWAY SEALING AND LAUREL LANE COMPLETE STREETS 2018
PROJECT, SPECIFICATION NO. 91630
RECOMMENDATION
1. Approve plans and specifications for the Roadway Sealing and Laurel Lane Complete
Streets 2018 Project, Specification Number. 91630; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the construction contract including the Base Bid and
Additive Alternatives if the lowest responsible bid is within the publicly disclosed Funding
Amount of $1,629,002.
DISCUSSION
Background
The City’s Pavement Maintenance Plan (Pavement Plan) was adopted by the City Council on
April 14, 1998. The Pavement Plan was updated to provide additional emphasis on arterial street
maintenance in 2009. A key element of the Pavement Plan is the establishment of a rotating and
methodical approach to ensuring all areas of the City receive regular preventative or corrective
maintenance. Most recent practice is to perform maintenance in two neighborhood Pavement
Areas one year, then focus on critical arterial street work the following year, alternating between
neighborhood areas and arterials each year. Last summer, available streets maintenance funding
was used for arterial street reconstruction and maintenance to Madonna Road and Los Osos
Valley Road. In summer 2016, neighborhood Pavement Areas 1 and 8 were completed.
This year, program funding is planned to be used to seal neighborhood streets with additional
arterial complete streets work to Laurel Lane predicated upon resulting project bid prices. This
additional work is identified as Additive Alternates A, B, and C to the contract. The base bid and
additive alternates are described in more detail below.
Roadway Sealing (Base Bid)
The Base Bid portion includes slurry seal maintenance for Area 2 & 3 Local and Collector
streets, and several streets in Area 8 that were not completed in 2016. Orcutt Road from Johnson
to Tank Farm is also included in the base bid. Orcutt Road was identified by staff for slurry seal
maintenance this year to prevent deterioration while still being in good condition.
In anticipation of this year’s roadway sealing project, the City’s Street Maintenance Program has
performed pavement repairs and crack sealing in pavement maintenance Areas 2 and 3. This
preparatory work increases the slurry seal application’s long-term effectiveness and reduces overall
construction costs. Slurry seal is a mixture of asphalt emulsion, aggregates and water. Slurry seal
is a cost-effective treatment that extends pavement life up to 8 years. The intent of this project is
Packet Page 69
Item 2
to prevent more expensive maintenance work in the future. Preventative and ongoing maintenance
is less costly and more environmentally beneficial than street re-paving.
Completion of roadway sealing will enable the City to make progress towards the Council’s
established goal to maintain at least 70% of streets in good condition and have no less than 7% of
the City’s streets in bad condition. This project also helps implement multimodal improvements,
a Major City Goal, due to bicycle improvements, which include buffered bike lanes and green
bike lanes.
Laurel Lane Complete Streets (Additive Alternates A, B, & C)
Complete Streets is a national movement that began years ago to create street networks that
provide safe travel options for pedestrians, cyclists, transit users and vehicles. The 2015 Traffic
Safety Report identified the intersection of Laurel Lane and Southwood Drive as the highest-
ranking intersection for pedestrian collisions on City of San Luis Obispo maintained streets. The
report recommendation included investigation of a lane reduction, or “road diet” for Laurel Lane
(one lane in each direction and center turn lane) and bulb out modifications to the sidewalk at
Laurel/Southwood and Laurel/Augusta intersections. These intersection improvements would
reduce the number of conflict points and reduced crossing distances for pedestrians at
intersections. The City Council adopted the 2015 Traffic Safety Report in September 2016 and
City staff began efforts to analyze Laurel Lane for feasibility of a “road diet.” The ‘road diet’
options anticipated for Laurel Lane constitute a ‘Complete Street’ project.
In general, the Complete Streets project on Laurel Lane would include the following elements:
1. Reduce travel lanes to one in each direction
2. Install two-way center turn lane
3. Install buffers between the travel lane and bicycle lane
4. Add on-street parking where width allows
5. Stripe the existing crosswalks as high-visibility crosswalks
6. Sidewalk bulb outs at the intersections of Laurel/Southwood and Laurel/Augusta
Existing Section
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Item 2
Proposed Section
Laurel Lane meets safety and operational criteria established in the Federal Highway
Administration Road Diet Information Guide as a very feasible candidate to go from four lanes
to three (the middle lane being a two-way-center turn lane). Both existing conditions and General
Plan full buildout conditions were analyzed, concluding that this type of lane configuration on
Laurel Lane would be unlikely to affect congestion along the corridor, whereas providing
additional safety features such as shortening crossing distances at intersections and buffered
bicycle lanes would improve the walking and biking environment along the corridor.
Two community meetings were held in the neighborhood to discuss the Complete Streets project
as well as traffic safety throughout the neighborhood. Additionally, City staff has worked
directly with neighbors to create a comprehensive design addressing traffic safety on Laurel
Lane. The top priorities from the community is pedestrian safety and street lighting. The top
remaining concern from residents is that the proposed project is not enough to adequately
address the safety issues.
The additive alternatives include additional pavement repairs and Complete Street improvements
on Laurel Lane. While improvements in excess of roadway striping revisions are not typically
included with annual roadway maintenance work, in order to address safety needs and
community priorities Laurel Lane complete streets work improvement work is included with this
maintenance project.
Additive Alternative A includes pavement repairs, slurry sealing, and striping modifications to
Laurel Lane reducing the number of travel lanes from two in each direction to one with a
common two-way center turn lane. Additive Alternative A is the first priority alternative to
construct since it will have the greatest safety benefit for all users of the corridor.
Additive Alternative B includes construction of four bulb outs and landscape improvements at
the intersection of Laurel Lane and Southwood Drive. Additive Alternate B is the second priority
alternative as the intersection of Laurel and Southwood was identified in the 2015 Traffic Safety
Report as having the highest pedestrian collision rate of intersections under City jurisdiction.
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Item 2
Additive Alternative C includes construction of four bulb outs and landscape improvements at
the intersection of Laurel Lane and Augusta Drive. Additive Alternate C is the third priority
alternate. While this intersection was not identified in the Traffic Safety Report, it is nearly
identical in physical features as well as vehicle, pedestrian and bicycle volumes as Laurel at
Southwood. The existing challenges pedestrians face crossing Laurel at Augusta and Laurel at
Southwood are the same.
ENVIRONMENTAL REVIEW
This project is categorically exempt from environmental review pursuant to section 15301 of the
CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement project. A
Notice of Exemption has been filed through the Community Development Department.
FISCAL IMPACT
The project is structured with a Base Bid and three Additive Alternatives to maximize the scope
of project within the available funding. The strategy is to award the contract with the Base Bid
and as many of the Additive Alternatives as funding will allow, up to the Publicly Disclosed
Funding amount of $1,648,345 in compliance with Public Contract Code Section 20103.8C.
There is currently a balance of $849,000 in the Street Reconstruction and Resurfacing Master
Account (Specification Number 90346). Additional funding of $1,600,000 will be available on
July 1, 2018 bringing the funding available balance in the Street Reconstruction and Resurfacing
Master Account to $2,499,000. It is anticipated that $670,169 will be used for the Concrete
Streets & Accessibility Improvement Project and $1,778,861 will be available to support this
project. While the construction estimate for this project is estimated at $1,562,000, staff is
requesting authorization to award a contract up to $1,629,002 to complete this work.
Other sources of funding include Bicycle Transportation Implementation Account ($174,141),
Bicycle Facility Improvements Account ($158,498), Water Distribution System Improvements
Master Account ($3,739,272), and the Collections System Improvement Master Account
($2,753,269). These funding sources support striping improvements for bicycle safety,
adjustment of water and sewer facilities to the new pavement elevations, and installation of bulb
outs along Laurel Lane.
This project is 99% funded through the City’s Local Revenue Measure approved by the City’s
residents.
Packet Page 72
Item 2
Estimated Project Cost by Funding Sources
Street R& R
Master
Account
(90346)
Distribution
System Imp.
(90227)
Sewer
Collection
System
Imp.
(90239)
Bicycle
Facility
Impr.
(90572)
Bicycle
Trans.
Implement.
(91373)
Total
Base Bid Estimate:$1,549,159 $12,841 $1,562,000
Add Alt A Estimate:$203,098 $10,000 $12,000 $77,159 $81,556 $383,813
Add Alt B Estimate:$146,825 $146,825
Add Alt C Estimate:$120,092 $120,092
Total Project Estimate:$2,019,174 $10,000 $12,000 $90,000 $81,556 $2,212,730
Contingencies (12%):$265,528 $265,528
Material Testing:$6,000 $6,000
Printing:$500 $500
Total for Project (including
additive alternatives):$2,291,202 $10,000 $12,000 $90,000 $81,556 $2,484,758
Current Fund Balance:$849,000
Concrete Streets & Access.
Improvements Project ($670,139)
2017-19 Financial Plan Funding
(Available after July 1, 2018):$1,600,000
Total funding available after
July 1, 2017 $1,778,861 $10,000 $12,000 $90,000 $81,556 $1,972,417
Total Contingencies, Materials
Testing, Printing Costs:$162,700
Publically Disclosed Funding
Amount $1,629,002
ROADWAY SEALING AND LAUREL LANE COMPLETE STREETS 2018
Packet Page 73
Item 2
ALTERNATIVES
1. Deny authorization to advertise. The City Council may choose not to authorize project
advertisement. This is not recommended since summer is the best time to pave and seal
streets.
2. Authorize Advertisement of only the Base Bid. The City Council may choose to construct
only the base bid and remove the pavement rehabilitation and road diet work proposed for
Laurel Lane.
3. Authorize Advertisement of only the Base Bid and Additive Alternate A. The City Council
may choose to construct the base bid and the pavement rehabilitation and road diet to Laurel
Lane, but with the option of not including either of the intersections with proposed bulb outs.
4. Authorize Advertisement of the Base Bid and Additive Alternate A, and either Additive
Alternative B or Additive Alternative C. The City Council may choose to construct the base
bid and the pavement rehabilitation and road diet to Laurel Lane, but with the option of
including one of the intersections with proposed bulb outs. This option would allow for
removal of bulb outs construction work from the total project, located at either Laurel and
Southwood (Add Alt B) or Laurel and Augusta (Add Alt C).
Attachments:
a - Pavement Area Map
b - Vicinity Map
c - Council Reading File - 91630 Plans
d - Council Reading File - 91630 Specifications
Packet Page 74
Item 2
Packet Page 75
Item 2
Page intentionally left
blank.
Packet Page 76
Item 2
Meeting Date: 5/1/2018
FROM: Greg Hermann, Interim Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
Heather Goodwin, Deputy City Clerk
SUBJECT: APPOINTMENT TO THE ACTIVE TRANSPORTATION COMMITTEE
(ATC)
RECOMMENDATION
In accordance with the recommendation of the Council Subcommittee, confirm the appointment
of Garrett Otto to the Active Transportation Committee to complete an unexpired term through
March 31, 2019.
DISCUSSION
Active Transportation Committee (Council Liaison Subcommittee Members (Pease and
Rivoire)
Due to the resignation of Howard Weisenthal, effective March 15, 2018, an unscheduled vacancy
occurred on the Active Transportation Committee. Mr. Weisenthal’s term would have expired
on March 31, 2019.
The Council Liaison Subcommittee recommends the appointment of Garrett Otto, effective May
1, 2018, to a term expiring March 31, 2019.
RECRUITMENT
Currently, the following Advisory Body has a vacancy and interviews are in the process of being
scheduled with the Council Liaison Subcommittee.
1. Construction Board of Appeals (2) – representative with disability
The following Advisory Bodies have vacancies and interested individuals are encouraged to
apply:
1. Citizens’ Revenue Enhancement Oversight Commission (REOC) (1)
2. Jack House Committee (1) – SLO County Historical Society Representative
3. Mass Transportation Committee (1) – Alternate Representative
4. Personnel Board (1)
CONCURRENCES
The Council Liaison subcommittee concurs with the recommendations.
Packet Page 77
Item 6
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended actions in this
report.
FISCAL IMPACT
There is no additional fiscal impact for the ATC.
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE
A hard copy of Mr. Otto’s Advisory Body application has been provided to the C ity Council and
is available for public review in the City Clerk’s office.
Packet Page 78
Item 6
San Luis Obispo Page 1
Tuesday, April 3, 2018
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, April 3,
2018 at 4:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo,
California, by Mayor Harmon.
ROLL CALL
Council Members
Present: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn
Christianson, and Mayor Heidi Harmon.
Council Members
Absent: None
City Staff
Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; Greg Hermann,
Interim Deputy City Manager and Teresa Purrington, Acting City Clerk; were
present at Roll Call. Other staff members presented reports or responded to
questions as indicated in the minutes.
PUBLIC HEARING ITEMSAND BUSINESS ITEMS
1. PUBLIC HEARING - WATER ENERGY EFFICIENCY PROJECT
Utilities Director Mattingly, Utilities Deputy Director – Wastewater Floyd and Water
Treatment Plant Operator Meeks, provided an in-depth staff report and responded to
Council questions.
Public Comments:
None
---End of Public Comments---
Packet Page 79
Item 8
San Luis Obispo City Council Minutes of April 3, 2018 Page 2
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL
MEMBER PEASE, CARRIED 5-0 to:
Recommendation:
1. Adopt a Resolution No. 10878 (2018 Series) entitled “A Resolution of the City Council
of the City of San Luis Obispo, California, authorizing a services agreement with Pacific
Gas and Electric Company pursuant to California Government Code 4217.10 et seq., for
the City’s Water Energy Efficiency Project” which would consider the following:
i. Authorize the City to enter into an agreement to participate in Pacific Gas and
Electric Company’s (PG&E) Sustainable Solutions Turnkey Program for the
Water Energy Efficiency Project; and
ii. Authorize the City Manager to enter into a service agreement, in a form subject to
the approval of the City Attorney, for the Water Energy Efficiency Project
pursuant to Government Code section 4217.10 et seq; and
iii. Authorize the City Manager to execute a Work Order to implement the
Investment Grade Audit for the Water Energy Efficiency Project with the Work
Order amount not to exceed $860,000; and
2. Approve the transfer of $280,000 of unreserved working capital to fully fund the
Investment Grade Audit.
2. POLICE DEPARTMENT 2016/2017 CRIME REPORT COMPARISON AND
UPDATE (CANTRELL / SMITH – 60 MINUTES)
Chief Deanna Cantrell and Captain Jeff Smith provided an in-depth staff report and
responded to Council questions.
Receive and file the 2016-2017 Police Department crime report.
RECESSED AT 5:13 P.M. TO THE REGULAR MEETING OF APRIL 3, 2018 TO
BEGIN AT 6:00 P.M.
Packet Page 80
Item 8
San Luis Obispo City Council Minutes of April 3, 2018 Page 3
CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, April 3,
2018 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo,
California, by Mayor Harmon.
ROLL CALL
Council Members
Present: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn
Christianson, and Mayor Heidi Harmon.
Council Members
Absent: None
City Staff
Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; Greg Hermann,
Interim Deputy City Manager and Teresa Purrington, Acting City Clerk; were
present at Roll Call. Other staff members presented reports or responded to
questions as indicated in the minutes.
PLEDGE OF ALLEGIANCE
Vice Mayor Carlyn Christianson led the Pledge of Allegiance.
PRESENTATIONS
3. PROCLAMATION - MONTH OF THE CHILD AND CHILD ABUSE PREVENTION
MONTH
Mayor Harmon presented a Proclamation to Melinda Sokolowski representing Community
Action Partnership of San Luis Obispo County (CAPSLO) proclaiming April 2018 as both
the “Month of the Child” and “Child Abuse Prevention Month.)
4. PROCLAMATION - SEXUAL ASSAULT AWARENESS MONTH
Mayor Harmon presented a Proclamation to Susan Lamont and Kris Roudebush representing
RISE, proclaiming April 2018 as “Sexual Assault Awareness Month.”
5. PROCLAMATION - COURT APPOINTED SPECIAL ADVOCATES (CASA) 25TH
ANNIVERSARY
Mayor Harmon presented a Proclamation to Teresa Tardiff and Susan Graves representing
CASA of San Luis Obispo County, proclaiming April 2018 as the 25th Anniversary of
CASA of San Luis Obispo County.
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PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
David Brodie
Jeffrey Specht
Alexis Sheffield
---End of Public Comment---
CONSENT AGENDA
ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY VICE MAYOR
CHRISTIANSON, CARRIED 5-0 to approve Consent Calendar Items 6 thru 10.
6. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate.
7. MINUTES OF MARCH 12, 2018, MARCH 20, 2018 AND MARCH 21, 2018
CARRIED 5-0, to approve the Minutes of the City Council meetings of March 12, 2018,
March 20, 2018 and March 21, 2018.
8. REVIEW AND ACCEPTANCE OF THE 2017 GENERAL PLAN ANNUAL REPORT
CARRIED 5-0, to accept the 2017 General Plan Annual Report.
9. WATER RESOURCE RECOVERY FACILITY (WRRF) DESIGN SERVICES
CONTRACT AMENDMENT
CARRIED 5-0, to
1. Approve a contract amendment with CH2M, Inc. for $790,767 for completion of Design
Services for the Water Resource Recovery Facility Project, Spec. No. 91363; and
2. Approve transfer of $790,767 from the Sewer Fund working capital for the WRRF
project to the project account.
10. RESCHEDULE THE 2018 CITY COUNCIL MEETING CALENDAR
CARRIED 5-0, to amend the 2018 City Council Meeting Calendar to reschedule the regular
City Council meeting of Tuesday, November 20, 2018 to Tuesday, November 27, 2018.
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PUBLIC HEARING ITEMS AND BUSINESS ITEMS
11. PUBLIC HEARING – CAPITAL FACILITIES FEE PROGRAM UPDATE/NEXUS
STUDY (AB 1600) ORDINANCE INTRODUCTION AND WATER AND
WASTEWATER DEVELOPMENT IMPACT FEE PROGRAM
Community Development Director Codron, Utilities Director Mattingly and Community
Development Deputy Director Fowler provided an in-depth staff report and responded to
Council questions.
Public Comments:
David Blakely
Stephen Peck
Andrew Hackleman
David Schlossberg
Victor Montgomery
Charlene Rosales
Marshall Ocmylski
---End of Public Comment---
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY
COUNCIL MEMBER PEASE, CARRIED 5-0 to:
1. Receive a presentation on the Capital Facilities Fee Program Nexus Study, which
identifies various infrastructure projects associated with transportation, parkland and park
improvements, police, fire, and general government facilities, and calculates new
development’s fair share of the cost of these facilities; and
2. Consider recommended policy adjustments to reduce the fair share for new development
to ensure the feasibility of various development types, including multi-family and smaller
single-family units; and
3. Introduce Ordinance No. 1646 (2018 Series) entitled “An Ordinance of the City Council
of the City of San Luis Obispo, California, amending the municipal code to establish
Capital Facilities Fee program and make related and conforming amendments to Chapter
4.56 (Ordinance No. 1256 (1994 Series)) to include the Capital Facilities Fee Program,
and adopting CEQA exemption findings”; and
4. Adopt Resolution No. 10879 (2018 Series) entitled “A Resolution of the City Council of
the City of San Luis Obispo, California, amending and establishing Capital Facilities Fee,
also referred to as Development Impact Fees”; and
5. Adopt Resolution No. 10880 (2018 Series) entitled “A Resolution of the City Council of
the City of San Luis Obispo, California, amending Water and Wastewater Development
Impact Fees.”
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COUNCIL COMMUNICATIONS AND LIAISON REPORTS
Council Member Pease reported on the Chamber Business visit at Promega Bioscience.
ADJOURNMENT
The meeting was adjourned at 8:33 p.m. A Special City Council Meeting is scheduled for
Tuesday, April 10, 2018. The next Regular City Council Meeting is scheduled for Tuesday,
April 17, 2018 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo,
California.
__________________________
Teresa Purrington
Acting City Clerk
APPROVED BY COUNCIL: XX/XX/2018
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Tuesday April 10, 2018
Special Meeting of the City Council
CALL TO ORDER
A Special Meeting of the San Luis Obispo City Council was called to order on Tuesday, April
10, 2018 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo,
California, by Mayor Harmon.
ROLL CALL
Council Members
Present: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn
Christianson, and Mayor Heidi Harmon.
Council Members
Absent: None
City Staff
Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa
Purrington, City Clerk; were present at Roll Call. Other staff members presented
reports or responded to questions as indicated in the minutes.
PLEDGE OF ALLEGIANCE
Council Member Andy Pease led the Pledge of Allegiance.
BUSINESS ITEMS
1. CONSIDERATION OF AMENDED ANHOLM BICYCLE PLAN AND
RESOLUTION FINALLY ADOPTING THE AMENDED PLAN
Public Works Director Grigsby and Transportation Manager Hudson provided an in-depth
staff report and responded to Council questions.
Public Comments:
Steve Klisch
Keith Gurnee
Meri Kay Gurnee
Paul Allen
Lea Brooks
Myron Amerine
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Jonathan Roberts
Crissa Hewitt
Corliss Campbell
Richard Schmidt
David Hofemeister
John Clements
Allan Cooper
Garrett Otto
Lydia Mourenza
Debbie Anthony
Allison Donatella
Camille Small
Robert Fishburn
Cheryl McLean
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY VICE MAYOR
CHRISTIANSON, CARRIED 4-1 (COUNCIL MEMBER PEASE VOTED NO) to:
1. Rescind Resolution No. 10866 (2018 Series) as adopted on February 20th, 2018; and
2. Adopt a revised Resolution entitled “A Resolution of the City Council of the City of San
Luis Obispo, California, Adopting the Anholm Bikeway Plan,” reflecting any
modifications or amendments previously directed by the City Council and that may be
directed by the City Council through and including the conclusion of its deliberations and
action at its April 10, 2018 meeting.
RECESS
Council recessed at 7:27 p.m. and reconvened at 7:30 p.m., with all Council Members present.
STUDY SESSION ITEMS
8. STUDY SESSION – STATUS REPORT AND POLICY DIRECTION ON ZONING
REGULATIONS UPDATE
Community Development Director Codron, Deputy Director Davison and Associate Planner
Bell provided an in-depth staff report and responded to Council questions.
Public Comments:
Robert Holzhauer
David Blakley
Allan Cooper
Cheryl Mc Lean
Menzie Cliff
Kyle Wiens
Emily Ewer
Susie Theule
Tim Ronda
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James Lopes
Dustin Pires
Carolyn Smith
Charlene Rosales
Eric Meyer
---End of Public Comment---
By consensus, Council directed staff to receive and file the status report and provided the
following direction:
1. Revise the density calculations as discussed for simplification and to continue
encouraging smaller housing units.
2. Allow flexible density downtown by removing density limits from smaller units. This
would also include applying the downtown development standards to the Upper
Monterey corridor (to the trestle) and bring back the corresponding Ordinance Overlay
Zone map as part of this Zoning Regulations Update.
3. Regulate rooftop uses by establishing setbacks, hours, size limits, and other standards to
balance the use and enjoyment of rooftop uses with the privacy of residential settings.
4. Whether current alcohol outlet practices and the incorporation of conditions of approval
as standards are adequate to address safety concerns downtown.
5. Whether to incorporate an opportunity for tiny homes on wheels as part of the Zoning
Regulations Update.
6. Remove specific barriers to ADU construction? Frontage improvements and/or
water/sewer impact fees.
7. Consolidate and streamline the review process for more simplicity, as outlined in the
report.
8. Whether parking requirements should be adjusted to reflect the City of San Luis Obispo s
multi-modal objectives in conjunction with revised and modified parking reduction
standards. These would include reducing the parking requirements to be more consistent
with ITE standards, lowering the level of review for parking reductions, and relying on
project-specific parking studies to determine the proper type and percentage of the
reduction.
Also, to add:
9. Explore changes to zoning to allow schools in more areas, possibly with a CUP.
10. Explore the possibility of including micro-businesses in residential areas to enhance a
sense of community.
ADJOURNMENT
The meeting was adjourned at 10:10 p.m. The next Regular City Council Meeting is scheduled
for Tuesday, May 1, 2018 at 4:00 p.m. and 6:00 p.m., in the Council Chamber, 990 Palm Street,
San Luis Obispo, California.
__________________________
Teresa Purrington
City Clerk
APPROVED BY COUNCIL: XX/XX/2018
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Tuesday, April 17, 2018
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, April
17, 2018 at 4:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis
Obispo, California, by Mayor Harmon.
ROLL CALL
Council Members
Present: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn
Christianson, and Mayor Heidi Harmon.
Council Members
Absent: None
City Staff
Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa
Purrington, City Clerk; were present at Roll Call. Other staff members presented
reports or responded to questions as indicated in the minutes.
PUBLIC COMMENT ON CLOSED SESSION ITEMS
Luke Marden
Ron Faria
Dale Strobridge
---End of Public Comment---
CLOSED SESSION
1. CLOSED SESSION – PUBLIC EMPLOYEE DISCIPLINE / DISMISSAL / RELEASE
[California Government Code Section 54957 (b)]
Council to deliberate on the Findings and Recommendations by the Personnel Board of the
City of San Luis Obispo
RECESSED AT 5:15 P.M. TO THE REGULAR MEETING OF TUESDAY, APRIL 17,
2018 TO BEGIN AT 6:00 P.M.
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CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, April
17, 2018 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo,
California, by Mayor Harmon.
ROLL CALL
Council Members
Present: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn
Christianson, and Mayor Heidi Harmon.
Council Members
Absent: None
City Staff
Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa
Purrington, City Clerk; were present at Roll Call. Other staff members presented
reports or responded to questions as indicated in the minutes.
PLEDGE OF ALLEGIANCE
Council Member Aaron Gomez led the Pledge of Allegiance.
REPORT ON CLOSED SESSION
City Clerk Teresa Purrington reported out:
Special counsel to the City Council provided the following information for the report out of
closed session:
By unanimous vote, the City Council decided that:
1. The disciplinary action (termination) imposed by the appointing authority is proper;
2. The findings of the Personnel Board are adopted by the City Council in their entirety;
3. The City’s counsel in this matter is directed to prepare the findings and order to be filed
with the city clerk; and
4. The Mayor is authorized to sign the findings and order consistent with the Council’s
decision.
INTRODUCTION
2. TERESA PURRINGTON - CITY CLERK
City Manager Derek Johnson introduced Teresa Purrington, City Clerk and administered the
Oath of Office.
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PRESENTATIONS
3. PROCLAMATION - POETRY MONTH
Mayor Harmon presented a Proclamation to Loena Guidace, Jeanie Greensfelder, Peggy
Sonoda, and Linda Halisky for Poetry Month
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Tim Ross
Luke Dunn
Jeffery Specht
Janine Rands
---End of Public Comment---
CONSENT AGENDA
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL
MEMBER RIVOIRE, CARRIED 5-0 to approve Consent Calendar Items 4, 5, 7 thru 10.
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL
MEMBER PEASE, CARRIED 5-0 to approve Consent Calendar Item 6.
4. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate.
5. ADOPTION OF AN ORDINANCE AMENDING THE MUNICIPAL CODE TO
ESTABLISH CAPITAL FACILITIES FEE PROGRAM AND MAKE RELATED AND
CONFORMING AMENDMENTS TO CHAPTER 4.56 (ORDINANCE NO. 1256 (1994
SERIES)) TO INCLUDE THE CAPITAL FACILITIES FEE PROGRAM, AND
ADOPTING CEQA EXEMPTION FINDINGS
CARRIED 5-0, to Adopt Ordinance 1646 (2018 Series) entitled “An Ordinance of the City
Council of the City of San Luis Obispo, California, amending the municipal code to
establish Capital Facilities Fee program and make related and conforming amendments to
Chapter 4.56 (Ordinance No. 1256 (1994 Series)) to include the Capital Facilities Fee
Program, and adopting CEQA exemption findings” amending Chapter 4.56 of the San Luis
Obispo Municipal Code to establish and implement the Capital Facilities Fee Program.
Item 6 pulled by Vice Mayor Christianson for separate discussion and consideration.
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6. REQUEST FOR STATEMENTS OF QUALIFICATION FOR GENERAL
CONTRACTING AND SUBCONTRACTORS FOR WRRF PROJECT
CARRIED 5 -0 to:
1. Adopt a Resolution No. 10882 (2018 Series) entitled “A Resolution of The City Council
of the City of San Luis Obispo, California Adopting Bidder Prequalification Documents
and Procedures and Establishing the Bidder Prequalification Appeals Panel for the Water
Resource Recovery Facility Project;” and
2. Authorize the City Manager, following City evaluation of the Statements of
Prequalification, to identify final lists of prequalified contractors and subcontractors to
provide:
a) General Contracting Services
b) Subcontractors to provide Electrical Subcontracting Services, and
c) Subcontractors to provide Control System Integration Subcontracting Services.
With direction from City Council to explore an Agreement which includes a local labor
contracting preference or incentive component during the contracting process.
Public Comment
David Baldwin
---End of Public Comment---
7. CONTRACT AMENDMENT – TRANSIT OPERATIONS & MAINTENANCE
CONTRACT
CARRIED 5 – 0 to:
1. Authorize a budget amendment to the Transit Enterprise Fund to reflect new State of
Good Repair operating assistance, and;
2. Authorize the City Manager to execute a contract amendment with First Transit Inc. with
a new not-to-exceed amount as set forth in the Amendment to Agreement No. 1.
8. RESOLUTION CONFIRMING THE 2018-19 LIST OF PROJECTS FUNDED BY SB-
1: THE ROAD REPAIR AND ACCOUNTABILITY ACT
CARRIED 5 – 0 to adopt a Resolution No. 10883 (2018 Series) entitled “A Resolution of
the City Council of the City of San Luis Obispo, California, confirming the 2018-19 list of
projects funded by SB 1: the Road Repair and Accountability Act” which defines a list of
projects funded by SB-1.
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9. 2016-17 CENTRAL SERVICE COST ALLOCATION PLANS AND COST OF
SERVICES FEE CALCULATION
CARRIED 5 – 0 to
1. Approve the 2016-17 Central Service Cost Allocation Plans dated March 2017; and
2. Approve the Cost of Services Fee Calculation.
10. SINSHEIMER STADIUM BACKSTOP, SPECIFICATION No. 91543
CARRIED 5 – 0 to
1. Award a contract to Judge Netting in the amount of $129,900 for the “Sinsheimer Stadium
Backstop Replacement, Specification No. 91543”; and
2. Approve the transfer of $55,000 from the Parks Major Maintenance Master account to the
project construction phase.
PUBLIC HEARING ITEMS AND BUSINESS ITEMS
11. ADOPTION OF A FISCAL HEALTH RESPONSE PLAN AND STRATEGIC
DIRECTION TO THE SUPPLEMENTAL BUDGET
City Manager Johnson, Parks and Recreation Director Stanwyck and Budget Manager
Ferreira provided an in-depth presentation of the staff report and responded to Council
questions.
Public Comments:
Leslie Halls
Stephen Barasch
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY VICE MAYOR
CHRISTIANSON, CARRIED 5-0 to:
1. Adopt a Fiscal Health Response Plan; and
2. Provide feedback and direction to staff regarding the application of the Fiscal Health Response
Plan to the 2018-19 Supplemental Budget to be reviewed and considered for adoption in June
2018; and
3. Provide direction regarding the possible initiation of a cannabis sales tax measure and
direct staff to return with more information for consideration on May 15, 2018.
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RECESS
Council recessed at 8:13 p.m. and reconvened at 8:30 p.m., with all Council Members present.
12. COUNCIL DIRECTION REGARDING FUNDING THE FUTURE OF SAN LUIS
OBISPO
City Manager Derek Johnson, Public Works Director Daryl Grigsby, Sarah Hollenbeck,
PFM and Richard Bernard, FM3 Research provided an in-depth presentation of the staff
report and responded to Council questions.
Public Comments:
Charlene Rosales
Bob Kasper
Larry Todd
---End of Public Comment---
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY
COUNCIL MEMBER GOMEZ, CARRIED 5-0 to:
1. Receive a Report on the projects, community feedback, and funding sources for Funding
the Future of SLO; and
2. Direct Staff to return to Council as part of the 2019-2021 Financial Plan with an outreach
and engagement plan, a prioritized project list, and recommendations to fund Capital
Projects within the Funding the Future of SLO initiative.
COUNCIL COMMUNICATIONS AND LIAISON REPORTS
Mayor Harmon reported attending the following Dr. Prater Common Ground Task Force,
Elements of Mediation Training, and meet your Mayor community walk. She also spoke at San
Luis High.
ADJOURNMENT
The meeting was adjourned at10:40 PM. To a Special Meeting to be held on Tuesday, April 24,
2018 at 5:00 p.m. for the purposes of conducting a closed session.
The next Regular City Council Meeting is scheduled for Tuesday, May 1, 2018 at 4:00 p.m. and
6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, San Luis Obispo,
California.
__________________________
Teresa Purrington
City Clerk
APPROVED BY COUNCIL: XX/XX/2018 Packet Page 93
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Item 8
Meeting Date: 5/1/2018
FROM: Daryl R. Grigsby, Director of Public Works
Prepared By: Hai Nguyen, Engineer II
SUBJECT: WATERLINE REPLACEMENT 2016 PROJECT, SPECIFICATION NO. 91436
RECOMMENDATION
1. Approve plans and specifications for the Waterline Replacement 2016 Project,
Specification Number. 91436; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the construction contract if the lowest responsible bid
is within the Engineer’s Estimate of $1,877,000.
DISCUSSION
Background
The City’s water distribution system is comprised of 184 miles of pipe with diameters ranging in
size from four inches to 30 inches. Some of the pipes that make up the City’s water distribution
system have been identified as undersized and beyond their useful design l ife. The useful design
life expectancy of waterlines is typically 50 years. Waterline breaks occur with more frequency
with aging waterlines, and the resulting repairs are disruptive to the public and expensive to
repair. Waterline breaks undermine the roadway requiring full depth reconstruction to properly
rehabilitation the pavement.
Replacement of water distribution pipes and related facilities is an ongoing program to replace
aging, substandard and deteriorating infrastructure, with the added benefit of lowering costs and
reducing customer impacts associated with emergency repairs. The main objectives of this
program are to ensure reliable water services, reduce the need for emergency repairs, and to
enhance available fire flows.
Project
This project will replace approximately 5,000 linear feet of waterline on Pacific, Boysen, Chorro
and Sierra streets. The waterlines that will be replaced with this project are substandard and
deteriorated. Their replacement will eliminate capacity limitations improving water flow for fire
protection. Replacing these waterlines will result in lower costs to the City and reduced customer
impacts associated with emergency repairs. Reducing or eliminating the number of required
emergency repairs provides more time for maintenance staff to complete preventive
maintenance, which prolongs the expected service life of Water Distribution facilities and
equipment.
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Item 9
ENVIRONMENTAL REVIEW
This project is categorically exempt from environmental review pursuant to section 15301 of th e
CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement project. A
Notice of Exemption has been filed through the Community Development Department.
FISCAL IMPACT
Waterline improvements identified in this project are included in the 2015-2017 Financial Plan
page 3-45, and the 2017-19 Financial Plan page E2-153 for the Water Distribution System
Improvements master account. The 2015-2017 Financial Plan allocated $1,560,000 to support
this request, and the 2017-2019 Financial Plan allocated an additional $1,700,000 for this
project. Additional waterline replacements are planned for a future project on Casa, Stenner,
Murray and intersections of Chorro/Meinecke and Chorro/Murray.
Funding for this project is available in the Water Distribution System Improvements Master
Account (90227) which has a current available balance of $3,739,272, which is sufficient to
support this request.
All utility improvement projects are classified as high -risk due to many unknown subsurface
conditions. Previous waterline replacement projects indicate that higher contingencies (20%-
25%) are required to cover the additional cost of modifying unknown utility conflicts and
hazardous excavation encountered during construction. Staff identified 25% contingencies for
this project.
Water Distribution
System
Construction Estimate:$1,877,000
Contingencies (25%):$469,250
Material Testing:$10,000
Printing:$500
Total for Project:$2,356,750
Total funding available $3,739,272
Remaining Balance $1,382,522
Waterline Replacements 2016 (91436)
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Item 9
ALTERNATIVES
Deny or defer approval to advertise. The City Council may choose to deny or defer the approval
to advertise this project. Staff does not recommend this option, as the water mains included in
this project continue to deteriorate and pose a high risk of catastrophic failure, requiring
expensive repairs.
Attachments:
a - Vicinity Map
b - Council Reading File - 91436 Plans
c - Council Reading File - 91436 Specifications
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Item 9
VICINITY MAP
WATERLINE REPLACEMENT 2016
N
1" = 1000'
Packet Page 98
Item 9
Meeting Date: 5/1/2018
FROM: Daryl Grigsby, Director of Public Works
Prepared By: Michael J. McGuire, Senior Civil Engineer
SUBJECT: CITY HALL CHILLER REPLACEMENT, SPECIFICATION NO. 91568
RECOMMENDATION
1. Approve plans and specifications for “City Hall Chiller Replacement, Specification No.
91568”; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the contract if the lowest responsible bid is within
the Engineer’s Estimate of $150,000.
DISCUSSION
The City Hall chiller is a roof-mounted cooling system that was installed in 1996. After
operating for over twenty years, the existing unit is beginning to fail and complete failure is
imminent. In recent years, staff has made numerous and costly maintenance repairs to keep the
unit working. To further complicate matters, the manufacturer has discontinued making this
chiller model and replacement parts are no longer available. When the unit fails completely,
City Hall will have no cooling, creating an uncomfortable and unhealthy environment for City
staff and the public.
This project will replace the existing chiller cooling system as soon as possible. The replacement
unit will be more energy-efficient, lighter in weight, and take up a smaller footprint on the roof
of City Hall. Additionally, the new unit will use an EPA compliant refrigerant instead of the
Freon refrigerant used by the existing chiller unit. Use of Freon gas is no longer permitted and
the existing unit is currently leaking it into the atmosphere, thus making this an important project
to achieve relative to the City’s Climate Action Major City Goal.
CONCURRENCES
A building permit application was submitted to the Community Development Department’s
Building Division in April 2018. A building permit will be approved this month and will be
issued to the contractor following the award of a construction contract. All comments and
conditions associated with the building and safety review of the project will be incorporated into
the design of the project. The City’s Sustainability Manager has reviewed the project and also
provided his concurrence.
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Item 10
ENVIRONMENTAL REVIEW
The project is exempt from environmental review under Section 15301 Class 1(d) (restoration or
rehabilitation of deteriorated or damaged mechanical equipment to meet currents standards of
public health and safety) of the California Environmental Quality Act (CEQA) Guidelines
because the project proposes to replace the existing deteriorated chiller cooling system.
FISCAL IMPACT
The 2017-19 Financial Plan, page E2-59, identifies $205,000 in the construction phase for the
2017-18 fiscal year, which is enough to fully fund the total costs of this project. This project is
100% funded by the City’s Local Revenue Measure.
ALTERNATIVE
Deny advertising the project. The City Council could choose to postpone the project. Staff does
not recommend this alternative. The existing chiller unit is failing and as the summer months
approach, complete unit failure is imminent. Further delay of replacing the chiller cooling
system will only create emergency conditions for its replacement and increase the costs
associated with the construction phase of work.
Attachments:
a - Plans
b - Special Provisions
Costs Budget
Construction:150,000$
Construction Contingencies:15,000$
Total for Construction:165,000$
Printing/Advertising:500$
Testing/Inspection:2,500$
Total for Miscellaneous:3,000$
Total Cost of Project:168,000$
Availble Budget 205,000$
Remaining Balance 37,000$
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1801971 OSOS STREETSAN LUIS OBISPOCALIFORNIA 93401805-544-6161www.fraserseiplearchitects.comCITY HALL CHILLERREPLACEMENT990 PALM STREETSAN LUIS OBISPO, CABAM2/20/2018 PROGRESS PRINTPacket Page 104Item 10
PALM STREETMILL STREETOSOS STREET
1801971 OSOS STREETSAN LUIS OBISPOCALIFORNIA 93401805-544-6161www.fraserseiplearchitects.comCITY HALL CHILLERREPLACEMENT990 PALM STREETSAN LUIS OBISPO, CABAM2/20/2018 PROGRESS PRINTCITY HALL SITE PLAN / ROOF PLANSCALE : 1" = 20'- 0"24CITY HALL ROOF WELL MECHANICAL DEMOLTION PLANSCALE : 1/4" = 1'- 0"54CITY HALL ROOF WELL MECHANICAL PLANSCALE : 1/4" = 1'- 0"54Packet Page 105Item 10
1
SPECIAL PROVISIONS
FOR
CITY OF SAN LUIS OBISPO
CITY HALL CHILLER REPLACEMENT
Specification No. 91568
APRIL 2018
PUBLIC WORKS DEPARTMENT
ENGINEERING DIVISION
919 Palm Street
San Luis Obispo, CA 93401
(805) 781-7200
Change Log – 6-30-17 MG
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Item 10
2
City Hall Chiller Replacement
Specification No. 91568
Approval Date: May 1, 2018
05.01.18
05.01.18
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Item 10
3
TABLE OF CONTENTS
Bid Submission ………………........................………………………………………………………….… 1
Bid Documents ………………………………………………………………………………………………. 1
Project Information …………….………………………………………………………………………….... 2
Qualifications ………………………………………………………………………………………………… 2
Award …………………………......………………………………………………………………………….. 3
Accommodation………………….………………………………………………………………………….. 4
Bid Item List …………………….……………………………………………………………………………. 5
List of Subcontractors …………...………………………………………………………………………… 6
Code Section Statements ……..…………………………………………………………………………… 7
Non-Collusion Declaration …..…………………………………………………………………………….. 8
Bidder Acknowledgements ….…………………………………………………………………………….. 9
Qualifications Form …………...…………………………………………………………………………….. 10
Bidder’s Bond ………………….…………………………………………………………………………….. 11
Special Provisions …………….…………………………………………………………………………….. 12
Agreement …………………………………………………………………………………………………….. 18
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NOTICE TO BIDDERS
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BID SUBMISSION
Sealed bids will be received by the City of San Luis Obispo at the Public Works Administration Office
located at 919 Palm Street, California 93401, until
2:00 p.m. on May 24, 2018
at which time they will be publicly opened and read aloud. Submit bid in a sealed envelope plainly
marked:
City Hall Chiller Replacement, Specification No. 91568
Any bid received after the time and date specified will not be considered and will be returned to the bidder
unopened. Bids received by Fax or Email will not be considered.
By submission of bid you agree to comply with all instruction and requirements in this notice and the
contract documents.
All bids must be submitted on the Bid Item List form(s) provided and submitted with all other Bid Forms
included in these Special Provisions.
Each bid must be accompanied by either a:
1. certified check
2. cashier's check
3. bidder's bond
made payable to the City of San Luis Obispo for an amount equal to ten percent of the bid amount as a
guaranty. Guaranty will be forfeited to the City San Luis Obispo if the bidder, to whom the contract is
awarded, fails to enter into the contract.
The City of San Luis Obispo reserves the right to accept or reject any or all bids or waive any informality
in a bid.
All bids are to be compared on the basis of the City Engineer's estimate of the quantities of work to be
done, as shown on the Bid Item List.
Bids will only be accepted from bidders that are licensed in compliance with the provisions of Chapter 9,
Division III of Business and Professions Code.
The award of the contract, if awarded, will be to the lowest responsive bid submitted by a responsible
contractor whose bid complies with the requirements prescribed. If the contract is awarded, the contract
will be awarded within 60 calendar days after the opening of the bids.
Failure to raise defects in the notice to bidders or bid forms prior to bid opening constitute a waiver of
those defects.
BID DOCUMENTS
A copy of the plans and special provisions may be downloaded, free of charge, from the City’s website at:
www.slocity.org/government/department-directory/public-works/public-works-bids-proposals
A printed copy may be obtained at the office of the City Engineer by paying a non-refundable fee of:
1. $20.00 if picked up in person, or
2. $30.00 if by mailing to the office of the City Engineer
Request must include Specification Number. The office of the City Engineer is located at:
919 Palm Street
San Luis Obispo, CA 93401
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NOTICE TO BIDDERS
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Standard Specifications and Engineering Standards referenced in the Special Provisions may be
downloaded, free of charge, from the City’s website at:
www.slocity.org/government/department-directory/public-works/documents-online/construction-
documents
A printed copy may be obtained by paying a non-refundable fee of:
1. $16.00 if picked up in person, or
2. $21.00 if by mailing to the office of the City Engineer
You are responsible to obtain all issued addenda prior to bid opening. Addenda will be available to
download at the City’s website listed above or at the office of the City Engineer.
Contact the project manager, Mike McGuire at (805) 783-7716 or the Public Works Department at (805)
781-7200 prior to bid opening to verify the number of addenda issued.
You are responsible to verify your contact information is correct on the plan holders list located on the
City’s website at:
www.slocity.org/government/department-directory/public-works/public-works-bids-proposals.
PROJECT INFORMATION
In general, the project consists of the replacement of the roof-mounted Chiller unit. All work will be
performed on the roof level.
The project estimated construction cost is $150,000.
Contract time is established as 20 working days.
The fixed liquidated damages amount is established at $500 per day for failure to complete the work
within the contract time.
In compliance with section 1773 of the Labor Code, the State of California Department of Industrial
Relations has established prevailing hourly wage rates for each type of workman. Current wage rates
may be obtained from the Division of Labor at: https://www.dir.ca.gov/oprl/DPreWageDetermination.htm
This project is subject to compliance monitoring and enforcement by the Department of Industrial
Relations.
There will be a mandatory walkthrough on May 15, 2018. Bidders should meet at the front of City Hall,
990 Palm Street at 10:00 AM or 2:00 PM. Prime Contractors wishing to submit a bid proposal are
required to attend and sign in at one of the two meetings.
QUALIFICATIONS
You must possess a valid Class C-20 or C-38 Contractor's License at the time of the bid opening.
You and any subcontractors required to pay prevailing wage must be registered with the
Department of Industrial Relations pursuant to Section 1725.5 of the Labor Code.
You must have experience constructing projects similar to the work specified for this project. Provide
three similar reference projects completed as either the prime or subcontractor. All referenced projects
must have been completed within the last five years from this project’s bid opening date.
One of the three reference projects must have been completed under contract with a city, county,
state or federal government agency as the prime contractor.
All of the referenced projects must be for HVAC equipment installation for commercial
applications.
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NOTICE TO BIDDERS
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Failure to provide reference projects as specified in this section and as required on the qualification form
is cause to reject a bid as being non-responsive.
The City reserves the right to reject any bid based on non-responsiveness if a bidder fails to provide a bid
that complies with all bidding instructions.
The City reserves the right to reject a responsive bid based on the non-responsibility of the bidder if the
Director of Public Works or Designee finds, after providing notice and a hearing to the bidder, that the
bidder lacks the
1. knowledge
2. experience,
3. or is otherwise not responsible
as defined in Section 3.24 of the San Luis Obispo Municipal Code to complete the project in the best
interest of the City.
Rejected bidders may appeal this determination. Appeal must comply with the requirements in this Notice
to Bidders.
It is the City of San Luis Obispo’s intent to award the contract to the lowest responsive bid submitted by a
responsible bidder. If in the bidder’s opinion the contract has been or may be improperly awarded, the
bidder may protest the contract award.
Protests must be filed no later than five working days after either:
1. bid opening date
2. notification of rejected bid.
Protest must be in writing and received by the project manager located at:
919 Palm Street
San Luis Obispo, CA 93401.
Valid protests must contain the following information:
1. the reasons for the protest
2. any supporting documentation
3. the ruling expected by the City to remedy the protest.
Any protest not containing all required information will be deemed invalid and rejected.
The City will consider additional documentation or other supporting information regarding the protest if
submitted in compliance to the specified time limits. Anything submitted after the specified time limit will
be rejected and not be considered.
The Director of Public Works or Designee may request additional information to be submitted within three
days of the request, unless otherwise specified, and will notify the protester of ruling within ten days of
determination.
In the event that protester is not satisfied with ruling, the protester may appeal the ruling to the City
Council in compliance with Chapter 1.20 of the City of San Luis Obispo Municipal Code.
Pursuant to the Public Records Act (Government Code, § 6250, et seq.), the City will make public records
available upon request.
AWARD
The lowest bidder will be determined using the BASE BID.
As a condition to executing a contract with the City, two bonds each equal to one hundred percent of the
total contract price are required in compliance with Section 3-1.05 of the Standard Specifications.
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NOTICE TO BIDDERS
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You may substitute securities for moneys withheld under the contract in compliance with the provisions of
the Public Contract Code, Section 10263.
ACCOMMODATION
If any accommodations are needed to participate in the bid process, please contact Kathryn Stanley at
(805) 781-7200 or by Telecommunications Device for the Deaf at (805) 781-7107. Requests should be
made as early as possible in the bidding process to allow time for accommodation.
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All bid forms must be completed and submitted with your bid. Failure to submit these forms and required
bid bond will be cause to reject the bid as nonresponsive. Staple all bid forms together.
THE UNDERSIGNED, agrees that they have carefully examined:
1. the location of the proposed work
2. the plans and specifications
3. read the accompanying instructions to bidders
and propose to furnish all:
4. materials
5. labor
to complete all the required work satisfactorily in compliance with
6. plans
7. specifications
8. special provisions
for the prices set forth in the bid item list:
BID ITEM LIST FOR City Hall Chiller Replacement, Specification No. 91568
Item Item Unit of Estimated Item Price Total
No. SS(1) Description Measure Quantity (in figures) (in figures)
1 90 Chiller Replacement LS 1
Base Bid $
Company Name:
(1) refers to section in the Standard Specifications, with modifications in the Special Provisions, that describe
required work.
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LIST OF SUBCONTRACTORS
Pursuant to Section 4100 of the Public Contracts Code and section 2-1.33C of the standard
specifications, the Bidder is required to furnish the following information for each Subcontractor
performing more than 1/2 percent (0.5%) of the total base bid. Do not list alternative subcontractors for
the same work. Subcontracting must not total more than fifty percent (50%) of the submitted bid except as
allowed in section 5-1.13 of the standard specifications.
For Streets & Highways projects, subcontractors performing less than ten thousand dollars ($10,000) worth
of work need not be mentioned. Subcontractors required to pay prevailing wage, must be registered
with the Department of Industrial Relations pursuant to Labor Code section 1725.5 to be listed.
NOTE: If there are no subcontractors, write “NONE” and submit with bid.
Name Under Which
Subcontractor is Licensed License Number
DIR Public
Works
Registration
Number
Address and Phone
Number of Office, Mill or
Shop
Specific
Description of
Subcontract
% of
Total
Base
Bid
Attach additional sheets as needed.
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(Rev 9-07)
PUBLIC CONTRACT CODE SECTION 10285.1 STATEMENT
In compliance with Public Contract Code Section 10285.1 (Chapter 376, Stats. 1985), the bidder hereby
declares under penalty of perjury under the laws of the State of California that the bidder, or any
subcontractor to be engaged by the bidder, has ____, has not ____ been convicted within the preceding
three years of any offenses referred to in that section, including any charge of fraud, bribery, collusion,
conspiracy, or any other act in violation of any state or federal antitrust law in connection with the bidding
upon, award of, or performance of, any public works contract, as defined in Public Contract Code Section
1101, with any public entity, as defined in Public Contract Code Section 1100, including the Regents of
the University of California or the Trustees of the California State University. The term "bidder" is
understood to include any partner, member, officer, director, responsible managing officer, or responsible
managing employee thereof, as referred to in Section 10285.1.
NOTE: The bidder must place a check mark after "has" or "has not" in one of the blank spaces provided.
The above Statement is part of the Bid. Signing this Bid on the signature portion constitute signature of
this Statement. Bidders are cautioned that making a false certification may subject the certifier to criminal
prosecution.
PUBLIC CONTRACT CODE SECTION 10162 QUESTIONNAIRE
In compliance with Public Contract Code Section 10162, the Bidder must complete, under penalty of
perjury, the following questionnaire:
Has the bidder, any officer of the bidder, or any employee of the bidder who has a proprietary interest in
the bidder, ever been disqualified, removed, or otherwise prevented from bidding on, or completing a
federal, state, or local government project because of a violation of law or a safety regulation?
Yes No
If the answer is yes, attach a letter explaining the circumstances
PUBLIC CONTRACT CODE SECTION 10232 STATEMENT
In compliance with Public Contract Code Section 10232, you hereby state under penalty of perjury, that no
more than one final unappealable finding of contempt of court by a federal court has been issued against
you within the immediately preceding two-year period because of your failure to comply with an order of a
federal court which orders you to comply with an order of the National Labor Relations Board.
LABOR CODE SECTION 1725.5 STATEMENTS
The bidder has delinquent liability to an employee or the state for any assessment of back wages or
related damages, interest, fines, or penalties pursuant to any final judgment, order, or determination by a
court or any federal, state, or local administrative agency, including a confirmed arbitration award. Any
judgment, order, or determination that is under appeal is excluded, provided that the contractor has
secured the payment of any amount eventually found due through a bond or other appropriate means.
Yes No
The bidder is currently debarred under Section 1777.1 or under any other federal or state law providing
for the debarment of contractors from public works.
Yes No
NOTE: The above Statements and Questionnaire are part of the Bid. Signing this Bid on the signature
portion constitute signature of this Statement and Questionnaire. Bidders are cautioned that making a false
certification may subject the certifier to criminal prosecution.
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BID FORMS
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NON-COLLUSION DECLARATION
I, , declare that
I am of ,
the party making the foregoing bid that the bid is not made in the interest of, or on behalf of, any undisclosed
person, partnership, company, association, organization, or corporation; that the bid is genuine and not
collusive or sham; that the bidder has not directly or indirectly induced or solicited any other bidder to put in
a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any
bidder or anyone else to put in a sham bid, or that anyone refrained from bidding; that the bidder has not in
any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix
the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price,
or of that of any other bidder, or to secure any advantage against the public body awarding the contract of
anyone interested in the proposed contract; that all statements contained in the bid are true; and, further,
that the bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the
contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any
corporation, partnership, company association, organization, bid depository, or to any member or agent
thereof to effectuate a collusive or sham bid.
Executed on , 20 , in __
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and
correct.
(Signature and Title of Declarant)
(SEAL)
Subscribed and sworn to before me
this _______day of _________, 20_____
Notary Public
Company Name:____________________
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Bidder Acknowledgements
By signing below, the bidder acknowledges and confirms that this bid is based on the information contained
in all contract documents, including the notice to bidders, plans, specifications, special provisions, and
addendum number(s) . (Note: You are responsible to verify the number of
addenda prior to the bid opening.)
The undersigned further agrees that in case of default in executing the required contract, with necessary
bonds, within eight days, (not including Saturdays, Sundays, and legal holidays), after having received a
mailed notice that the contract is ready for signature, the proceeds of the check or bond accompanying his
bid will become the property of the City of San Luis Obispo.
Licensed in accordance with an act providing for the registration of contractors, License No. ,
Expiration Date .
The above statement is made under penalty of perjury, and any bid not containing this information "will be
considered non-responsive and will be rejected” by the City.
Signature of Bidder
(Print Name and Title of Bidder)
DIR– Public Works
Registration No:
Business Name (DBA):
Owner/Legal Name:
Indicate One: Sole-proprietor Partnership Corporation
List Partners/Corporate Officers:
Name Title
Name Title
Name Title
Business Address
Street Address
Mailing Address
City, State, Zip Code
Phone Number
Fax Number
Email Address
Date
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Qualifications
Failure to furnish complete reference information ON THIS FORM, as specified in this project’s Notice to
Bidders and indicated below, is cause to reject the bid. Additional information may be attached, but is not a
substitute for this form.
Reference Number 1
Customer Name & Contact Individual
Telephone & Email
Project Name (Site Address):
Is this similar to the project being bid or
did this project include HVAC work?
Yes □ No □
Describe the services provided and how this project is similar to
that which is being bid:
Date project completed:
Was this contract for a public agency?
Yes □ No □
Reference Number 2
Customer Name & Contact Individual
Telephone & Email
Project Name (Site Address):
Is this similar to the project being bid or
did this project include HVAC work?
Yes □ No □
Describe the services provided and how this project is similar to
that which is being bid:
Date project completed:
Was this contract for a public agency?
Yes □ No □
Reference Number 3
Customer Name & Contact Individual
Telephone & Email
Project Name (Site Address):
Is this similar to the project being bid or
did this project include HVAC work?
Yes □ No □
Describe the services provided and how this project is similar to
that which is being bid:
Date project completed:
Was this contract for a public agency?
Yes □ No □
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ATTACH BIDDER'S BOND TO ACCOMPANY BID
Know all men by these presents:
That we ____________________________________________, AS PRINCIPAL, and
_______________________________________________________, AS SURETY, are held and firmly
bound unto the City of San Luis Obispo in the sum of:
____________________________________________________ Dollars (_____________) to be paid to
said City or its certain attorney, its successors and assigns; for which payment, well and truly to be made,
we bind ourselves, our heirs, executors and administrators, successors or assigns, jointly and severally,
firmly by these presents:
THE CONDITION OF THIS OBLIGATION IS SUCH, that if the certain bid of the above
bounden ______________________________________________________________________
to construct ___________________________________________________________________
(insert name of street and limits to be improved or project)
dated _____________________ is accepted by the City of San Luis Obispo, and if the above
bounden _______________________________________________________, his heirs, executors,
administrators, successors, and assigns shall duly enter into and execute a contract for such construction
and shall execute and deliver the two bonds described within ten (10) days (not including Saturdays,
Sundays, or legal holidays) after the above bounden,
______________________________________________________, has received notice by and from the
said City of San Luis Obispo that said contract is ready for execution, then this obligation shall become null
and void; otherwise, it shall be and remain in full force and virtue.
IN WITNESS WHEREOF, we hereunto set our hands and seals this ___ day of ______, 20____.
Bidder Principal:
Signature Date
Title:
Surety:
Bidder's signature is not required to be notarized. Surety's signature must be notarized.
Equivalent form may be substituted
(Rev. 6-30-14)
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SPECIAL PROVISIONS
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ORGANIZATION
Special provisions are under headings that correspond with the main section heading of the Standard
Specifications. Each special provision begins with a revision clause that describes or introduces a
revision to the Standard Specifications. Any paragraph added or deleted by a revision clause does not
change the paragraph number of the Standard Specifications for any other reference to a paragraph of
the Standard Specifications.
DIVISION I GENERAL PROVISIONS
1 GENERAL
Add to Section 1-1.01 General
The work must be done in compliance with the City of San Luis Obispo, Department of Public Works:
1. City Hall Chiller Replacement Special Provisions
2. City of San Luis Obispo Standard Specifications and Engineering Standards – 2016 edition
3. State of California, Department of Transportation Standard Specifications and Standard Plans –
2010 edition
In case of conflict between documents, governing ranking must comply with section 5-1.02 of the City of
San Luis Obispo’s Standard Specifications.
Failure to comply with the provisions of these sections is a material breach of contract:
1. Sections 6 through 8 of the Standard Specifications
2. Section 12 through 15 of the Standard Specifications
3. Section 77-1 of the Standard Specifications
4. Section 81 of the Standard Specifications
5. authorized working hours
6. OSHA compliance
2 BIDDING
Replace Section 2-1.33A with:
Furnish bid using blank forms provided in the Special Provisions. Bid must include all forms and must be
signed by the bidder.
3 CONTRACT AWARD AND EXECUTION
Replace 1st and 2nd paragraph in Section 3-1.18 with
Upon notification of project award, return:
1. executed contract
2. insurance
3. contract bonds
within five working days after the bidder receives the contract.
4 SCOPE OF WORK
Add to Section 4-1.03 Work Description
Comply with the provisions of Section 90 for general, material, construction, and payment specifics.
Add Section 4-1.03A Project Specific Signage
Maintain Revenue Enhancement Funding signage in work area. Return Revenue Enhancement Funding
signs at the end of the project or upon the Engineer’s request.
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5 CONTROL OF WORK
Add to Section 5-1.01 Control of Work General
Adjustments to working hours may be imposed, in compliance with section 7-1.03B, because of public
traffic impacts.
Add to Section 5-1.13A Sub-Contracting General
A representative of the prime contractor must be on site when any subcontractor is performing contract
work. Contract work will not be allowed to continue until prime contractor’s representative is on site.
Add to Section 5-1.36A General
Repair to damage must comply with the associated sections of the specifications, standards, and plans.
Add to Section 5-1.36D Non-highway Facilities
Existing third party (non City-owned) utilities are shown on project plans for information purposes only. It
is your responsibility to contact “Underground Service Alert USA” and have site marked prior to start of
excavation or sawcutting. The City of San Luis Obispo is not responsible for any:
1. damages
2. costs
3. delay
4. expenses
resulting from a third party underground facility operator’s failure to comply with stipulations as set forth in
4216.7.(c) of California Government Code.
Add to Section 5-1.43A Potential Claims and Dispute Resolution General
Potential claim forms are located on the City’s website:
www.slocity.org/government/department-directory/public-works/documents-online/construction-
documents
6 CONTROL OF MATERIALS
Add to Section 6-2.03 Department Furnished Materials
The Engineer will furnish Sales Tax signs mounted to moveable barricades. Maintain Sales Tax signage
in work area. Return Sales Tax signs at the end of the project or upon the Engineer’s request.
7 LEGAL RELATIONS AND RESPONSIBILITY TO THE PUBLIC
Add to Section 7-1.02K(1) General
The project is subject to compliance monitoring and enforcement by the Department of Industrial
Relations.
Add to Section 7-1.03B Traffic Control Plan
Work hours are restricted to 7:00 a.m. to 4:00 p.m. on Mill Street.
Provide traffic control plan and traffic control application at or before the preconstruction meeting. Traffic
control plan must be drawn to scale. Traffic control application may be obtained on the City’s website:
www.slocity.org/government/department-directory/public-works/documents-online/construction-
documents
Upon approval of the traffic control plan, the City will issue a no-fee Encroachment Permit. Permittee is
responsible to comply with all conditions of the traffic control plan. Complete work using due diligence in
order to restore free flowing of traffic.
Replace Section 7-1.06 with:
7-1.06A General
Procure and maintain for the duration of the contract, insurance against claims for:
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1. injuries to persons
2. damages to property
which may arise from or in connection with the performance of the work by your:
1. agents
2. representatives
3. employees
4. subcontractor
Provide:
1. Commercial General Liability Insurance
2. Commercial General Liability Insurance Endorsement
3. Automotive Liability Insurance
4. Automotive Liability Insurance Endorsement
5. Workers’ Compensation Insurance
The Contractor agrees to defend, indemnify and hold harmless the City from and against any and all fines
or mitigation measures imposed on the City arising out of the Contractor's actual or alleged violation of
any local, state or federal regulation, as well as all attorney fees, costs and expenses of any kind which
directly or indirectly arise out of or are in any way associated with enforcing this indemnity provision
against the Contractor.
7-1.06B Minimum Scope of Insurance
Coverage must be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage:
a. CG 20 10 Prior to 1993
b. CG 20 10 07 04 with CG 20 37 10 01
2. Insurance Services Office form number CA 0001 (January 1987 Edition) covering Automobile
Liability, code 1 (any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
7-1.06C Minimum Limits of Insurance
Maintain insurance limits no less than:
1. General Liability:
a. $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 must apply separately to this project/location or the general aggregate
limit must be twice the required occurrence limit.
2. Automobile Liability:
a. $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability:
a. $1,000,000 per accident for bodily injury or disease.
7-1.06D 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:
1. the insurer must reduce or eliminate the deductibles
2. procure a bond guaranteeing payment of:
a. losses and related investigations
b. claim administration and defense expenses.
7-1.06E 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:
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SPECIAL PROVISIONS
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a. liability arising out of activities performed by or on behalf of you
b. your products and completed operations
c. premises owned, occupied or used by you
d. automobiles owned, leased, hired or borrowed by you
2. The coverage must not contain special limitations on the scope of protection afforded to the City
and its:
a. officers
b. officials
c. employees
d. agents
e. volunteers
3. For any claims related to this project, your insurance coverage will be the primary insurance for
the City and its:
a. officers
b. officials
c. employees
d. agents
e. volunteers.
4. Any insurance or self-insurance maintained by the City is in excess to your insurance and will not
contribute to it.
5. Any failure to comply with reporting or other provisions of the policies including breaches of
warranties must not affect coverage provided to the City and its
a. officers
b. officials
c. employees
d. agents
e. volunteers
6. Your insurance must 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.
7. Each insurance policy required must be endorsed to state that coverage will not be:
a. Suspended
b. Voided
c. canceled by either party
d. reduced in coverage or in limits
except after thirty days prior written notice provided by certified mail with return receipt requested has
been given to the City.
8. Coverage may not extend to any indemnity coverage for the active negligence of the additional
insured in any case where an agreement to indemnify the additional insured would be invalid
under Subdivision (b) of section 2782 of the Civil Code.
7-1.06F Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.
7-1.06G Verification of Coverage
Furnish the City with a certificate of insurance showing required insurance coverage. Original
endorsements effecting general liability and automobile liability coverage must 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.
7-1.06H Subcontractors
Include all subcontractors as insured under its policies or provide separate certificates and endorsements
for each subcontractor. All insurance coverage for subcontractors are subject to same requirements as
the prime contractor.
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8 PROSECUTION AND PROGRESS
Section 8-1.02A Schedule
Provide a Level 1 schedule for this work.
Add to Section 8-1.03 Pre-Construction Conference
All listed subcontractors performing contract work must attend the preconstruction meeting.
At a minimum, provide the following submittals at the preconstruction meeting:
1. emergency contact list
2. representative at the site of work authorized to sign extra work tickets
3. representative authorized to sign change orders
4. Caltrans equipment rental rates for equipment used to complete work
5. work schedule
6. traffic control application
7. traffic control plan
8. water pollution control plan
9. door hanger for notification of adjacent properties
10. chiller equipment
Add to 8-1.04B
Contract time will start on the first Monday after the preconstruction meeting.
9 PAYMENT
Add to section 9-1.03 Payment Scope.
The City pays 7% annually (0.58% monthly) on unpaid claim amounts that are ultimately approved beginning
60 days after claim approval.
Add to section 9-1.16A General
Undisputed portions of a claim will be paid within 60 days after the City issues its written statement. Claim
resolution payment after 60 days are subject to additional interest payment in compliance with Section 9-
1.03.
Replace section 9-1.22 with:
Claim Resolution Procedure is as follows:
1. You must submit all claims by registered mail or certified mail with return receipt requested.
You shall furnish reasonable documents to support the claim.
2. The Engineer will submit a written response to you for each claim within 45 days after the
Engineer’s receipt of a claim. The 45-day deadline is extended if mutually agreed by you and
the Engineer. If the Engineer needs approval from the City Council to provide you with a
written statement identifying the disputed portion and the undisputed portion of the claim, and
the City Council does not meet within the 45 days or within the mutually agreed extension of
time, the Engineer shall have up to 3 days following the next duly noticed meeting of the City
Council after the 45 day period, or extension, expires to provide you with a written statement
identifying the disputed portion and the undisputed portion of the claim.
3. If you dispute the Engineer’s written response to any claim, or the Engineer fails to respond
within the time specified, you must notify the Engineer in writing, either within 15 days of the
Engineer’s response or the Engineer’s failure to respond within the specified time period, and
demand an informal meeting to discuss and attempt to settle the issues remaining in dispute.
Upon receipt of such a demand, the Engineer will schedule such a meeting within 30 days.
4. Within 10 business days after the informal meeting, the Engineer will submit a written
response to you for the claim submitted identifying the portion of the claim that remains in
dispute and the portion that is undisputed.
5. Following the informal meeting, if any claim or portion thereof remains in dispute, as identified
by you in writing, the claim will be submitted to non-binding mediation, with parties sharing
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Item 10
SPECIAL PROVISIONS
17
the associated costs equally. Both parties must agree to a mediator within 10 working days.
If parties are unable to mutually agree on mediator, each party must select a mediator and
those mediators must select a qualified neutral third party to mediate regarding the disputed
portion of the claim. Each party is responsible for the fees and costs charged by its
respective mediator in connection with selecting the neutral mediator. If mediation is
unsuccessful, the portion of the claim remaining in dispute will be subject to any applicable
procedure outside of this claim resolution procedure.
Failure by the Engineer to respond to a claim from a contractor within the time periods described
result in the claim being rejected in its entirety.
Add to Section 9-1.23 City Billing
After given the opportunity, you fail to complete any of the following:
1. maintain the project site,
2. complete project work,
3. any other cause which requires City staff to complete work at the project site
you must reimburse the City in compliance with section 9-1.23.
DIVISION II GENERAL CONSTRUCTION
13 WATER POLLUTION CONTROL
Add to 2nd paragraph in Section 13-1.01A
A minor WPCP plan form may be obtained on the City’s website:
www.slocity.org/government/department-directory/public-works/documents-online/construction-
documents
DIVISION X MATERIALS
DIVISION XI BUILDING CONSTRUCTION
See Mechanical Plans for technical specifications.
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Item 10
APPENDICES
18
APPENDIX A - FORM OF AGREEMENT
THIS AGREEMENT, made on this ______ day of ___________, 20__, by and between the City of San Luis
Obispo, a municipal corporation and charter city, San Luis Obispo County, California (hereinafter called the
Owner) and COMPANY NAME (hereinafter called the Contractor).
WITNESSETH:
That the Owner and the Contractor for the consideration stated herein agree as follows:
ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall
provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and
transportation services required to complete all the work of construction of
NAME OF PROJECT, SPEC NO.
in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by
the Owner, in strict compliance with the Contract Documents hereinafter enumerated.
It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said work
performed and completed under the direction and supervision and subject to the approval of the Owner or its
authorized representatives.
ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration for the faithful
performance of this Contract, subject to any additions or deductions as provided in the Contract Documents,
the contract prices as follows:
Item
No.
Item Unit of
Measure
Estimated
Quantity
Item Price
(in figures)
Total
(in figures)
1.
2.
3.
BID TOTAL: $ .00
Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in
the documents made a part of this Contract.
Should any dispute arise respecting the true value of any work omitted, or of any extra work which the
Contractor may be required to do, or respecting the size of any payment to the Contractor, during the
performance of this Contract, said dispute shall be decided by the Owner and its decision shall be final, and
conclusive.
ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the following
documents, all of which are as fully a part thereof as if herein set out in full, and if not attached, as if hereto
attached:
1. Notice to Bidders and information for bidders.
2. Standard Specifications, Engineering Standards, Special Provisions, and any Addenda.
3. Plans.
4. Caltrans Standard Specifications and Standard Plans 2010
5. Accepted Bid.
6. List of Subcontractors.
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APPENDICES
19
7. Public Contract Code Sections 10285.1 Statement.
8. Public Contract Code Section 10162 Questionnaire.
9. Public Contract Code Section 10232 Statement.
10. Labor Code Section 1725.5 Statements.
11. Bidder Acknowledgements.
12. Qualifications.
13. Attach Bidders Bond to Accompany Bid.
14. Non-collusion Declaration.
15. Agreement and Bonds.
16. Insurance Requirements and Forms.
ARTICLE IV INDEMNIFICATION: 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. In the event of conflict with any other indemnification or hold harmless provisions of this
Agreement, the provision that provides the most protection to the City shall apply.
ARTICLE V. It is further expressly agreed by and between the parties hereto that should there be any
conflict between the terms of this instrument and the bid of said Contractor, then this instrument shall control
and nothing herein shall be considered as an acceptance of the said terms of said bid conflicting herewith.
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date
first above written.
CITY OF SAN LUIS OBISPO
A Municipal Corporation
__________________________________
Derek Johnson, City Manager
APPROVED AS TO FORM CONTRACTOR:
Name of Company
________________________________
By:________________________________
J. Christine Dietrick
City Attorney
Name of CAO/President
Its: CAO/PRESIDENT
Rev. 12-28-09
Rev. 2 5/12/16 DMA
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Item 10
Meeting Date: 5/1/2018
FROM: Daryl Grigsby, Director of Public Works
Prepared By: Lyle Nemeth, Engineer II
SUBJECT: SOUTHWOOD AND ELLEN WAY DRAINAGE IMPROVEMENT,
SPECIFICATION NO. 91623
RECOMMENDATION
1. Approve plans and specifications for the Southwood and Ellen Way Drainage Improvement
Project, Specification No. 91623; and,
2. Authorize staff to advertise for bids; and,
3. Authorize the City Manager to award the contract if the lowest responsible bid is within the
Engineer’s Estimate of $207,000.
DISCUSSION
Background
A large portion of the City’s storm sewer pipeline infrastructure is comprised of corrugated metal
pipe (CMP). In the 1960’s and 1970’s, CMP was the industry standard due to its inexpensive
material cost, ease of installation and projected 50-year design life. In the City’s experience, CMP
has proven to have a life of 20 to 30 years. CMP typically fails by friction from the action of
flowing water with rocks and sediment, corrosion, or both. Once the integrity of the pipe has been
compromised, the pipe’s surrounding soil becomes susceptible to piping (soil picked up by flowing
water and carried away) and the pipe will eventually collapse.
The proposed project will address failing CMP drain systems at two locations: Southwood Drive
and Ellen Way. The drain system on Southwood Drive is adjacent to the following properties:
1404 – 1220 Southwood Drive and 1370 Woodside Drive. The drain system on Ellen Way is
adjacent to 546 and 547 Ellen Way. The proposed project will rehabilitate and extend the
existing storm drain systems by removing 150 linear feet of CMP and installing 350 linear feet of
polyvinyl chloride (PVC) pipe or High Density Polyethylene (HDPE) pipe liner. The existing
CMP systems being replaced have been identified by City staff as being at the end of their useful
life. The project will upgrade four catch basins to the current City-standard. In addition, one new
catch basin and three new manholes will be installed.
ENVIRONMENTAL REVIEW
This project is categorically exempt from environmental review pursuant to section 15301 of the
CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement project. A
Notice of Exemption has been filed through the Community Development Department.
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Item 11
FISCAL IMPACT
Project funding was adopted in the 2017-2019 Financial Plan as part of the Master CMP
Replacement account. There is currently $944,972 in the Master CMP Replacement account to
support this request for $252,000. At the time of contract award, a Budget Amendment Request
will be generated to transfer funding from the Master CMP Replacement account to the
Southwood and Ellen Way Drainage Improvement project’s account for construction.
This project will be 100% funded through Measure G, the half-cent sales tax measure approved
by the City’s residents.
ALTERNATIVE
Deny authorization to advertise the project. Staff does not recommend this alternative as the
condition of the pipe puts adjacent infrastructure at risk of failure.
Attachments:
a - Vicinity Map
b - Council Reading File - 91623 Plans - 100%
c - Council Reading File - 91623 Special Provisions - 100%
STREET & FLOOD CAPITAL BUDGET
Master CMP Replacement (90742)$944,972
Southwood and Ellen Way Drainage Improvement (91623)
Construction:$207,000
Construction Contingencies:$40,000
Material Testing:$4,000
Printing:$1,000
Total Cost of Project $252,000
Remaining Balance in Master Account $692,972
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Item 11
Meeting Date: 5/1/2018
FROM: Michael Codron, Community Development Director
Prepared By: Tyler Corey, Principal Planner
SUBJECT: RESOLUTION ACCEPTING A TAX EXCHANGE AGREEMENT WITH THE
COUNTY OF SAN LUIS OBISPO TO ADDRESS TAX TRANSFERS FROM
THE SAN LUIS RANCH ANNEXATION AREA; ANNEXATION NO. 80.
RECOMMENDATION
Adopt a resolution accepting a tax exchange agreement with the County of San Luis Obispo
addressing tax transfers from the San Luis Ranch annexation area (Attachment A).
DISCUSSION
Background
On July 18, 2017, the Cit y Council approved the Specific Plan and related project entitlements
for the San Luis Ranch development, including initiation of annexation of the project site by
authorizing staff to submit an application for annexation to the Local Agency Formation
Commission (LAFCo). State law requires that jurisdictions affected by an annexation (in this
case, the County and the City of San Luis Obispo) negotiate an exchange of the taxes paid in the
annexation area prior to LAFCo approval of the jurisdictional change.
On October 3, 2017, the County Board of Supervisors (“the Board”) approved the
commencement of tax exchange negotiations with the City for the San Luis Ranch Annexation
area. The Revenue and Taxation Code requires that negotiations be concluded within 60 days,
unless extended by mutual agreement between the involved agencies for an additional 30 days.
County and City staff began a series of meetings on this negotiation in early October, and several
weeks later, determined that the negotiation would not be complete within the 60-90 day
timeframe. On March 6, 2018, the Board approved the re-initiation of the negotiation period for
this annexation. The Board is also scheduled to consider the agreement on May 1, 2018, within
the second 60-day timeframe.
Summary
In 1996, the City and County adopted a joint resolution, along with several other cities in the
County, to establish a county-wide policy regarding tax exchanges (Attachment b). The “master”
tax exchange agreement is based on two principles, (1) that the County should not “profit” from
annexations, nor should annexations result in a net fiscal loss to the County, and (2), that tax
exchange practices should not undermine good land use planning by discouraging cities from
pursuing logical and appropriate annexations.
With these principles as the base for discussions, City and County staff have negotiated an
agreement that is consistent with the “master” tax exchange agreement with the County.
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Item 12
Specifically, the resolution recommended for adoption provides for the County to receive all
base (existing) taxes and two-thirds of all future tax increment. Separate from the tax exchange,
but related to the San Luis Ranch development and proposed annexation, the County has agreed
to contribute a one-time payment in the amount of $1,435,260 towards the City project to
construct the Prado Road/US Highway 101 Interchange.
Tax Exchange History
Prior to 1996, tax exchange negotiations between the County and cities were more contentious,
with the County “holding most of the cards.” This is because the negotiation process would not
commence until after the annexation applications had gone through a lengthy and complex city
development review process. According to the State Revenue and Taxation Code (Section 99),
exchange negotiations must be concluded within 60 days or the annexation application would
terminate.
Given this process, our city (like others) was under pressure to agree to high County expectations
for sharing tax revenue. Such expectations were increasing across the state, with counties
demanding not only existing revenue, but major shares of future revenue, including transient
occupancy tax and sales tax.
Counties have a need for revenue to support services to residents - even city residents - because
as cities grow, so does the demand for county services (e.g. court, health care, social services,
etc.). As a result, many cities and counties throughout California have become engaged in very
contentious tax negotiations, to the detriment of all involved.
To address this situation in San Luis Obispo County, the Mayors of the cities in the County
commissioned extensive study of the added burdens created for our County by development
within the boundaries of cities. As a result, several cities in San Luis Obispo County entered into
a “master” tax exchange agreement with the County in 1996 (Attachment b). This agreement
greatly reduces the uncertainty and conflict inherent in the previous annexation process,
especially relative to raw undeveloped land.
San Luis Ranch Tax Agreement
The negotiated agreement for the San Luis Ranch annexation area provides for the County to
receive all base tax and two-thirds of the future tax increment, consistent with the countywide
“master” tax exchange agreement.
County Contribution toward Prado Road/US Highway 101 Interchange
Separate from the property tax exchange, but related to the San Luis Ranch development, the
County has agreed to contribute a one-time payment in the amount of $1,435,260 towards the
construction of the Prado Road/US Highway 101 Interchange, which will have significant
regional benefits. The County’s contribution to the Prado Road Interchange was negotiated
outside of the property tax agreement, due to the one-time nature of the contribution, and
because the Prado Road Interchange is not expected to generate a need for additional County
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Item 12
services. This one-time payment from the County is expected by the end of 2018.
FISCAL IMPACT
The “master” tax exchange agreement with the County has been in effect since 1996. The
negotiated agreement for the San Luis Ranch annexation area is consistent with the “master” tax
exchange agreement. When the “master” tax exchange agreement was proposed in 1996 it was
accompanied by a fiscal analysis that made two conclusions (Attachment c). First, that that loss
of property tax to the County through the agreement is recompensed many times over by sales
tax. Second, for residential properties, the shift of some property tax to the County from the City
is relatively small and that other variables would be much more important to the community’s
decision to move forward with a particular annexation (such as the creation of housing stock to
help the City achieve its Housing Element goals).
The other relevant analysis was prepared along with the City’s General Plan Land Use Element
(LUE). When the LUE was adopted, it was determined to have a neutral fiscal impact. In other
words, future expenditures associated with build-out of the land use plan are supported by future
revenues. Because development of the San Luis Ranch area is consistent with the General Plan,
annexation of the San Luis Ranch area is expected to have a neutral fiscal impact in the
aggregate.
ALTERNATIVES
1. If the City Council has specific concerns with the rationale for the 1996 Agreement, direct
staff to re-open negotiations with the County with specific negotiating parameters. This
alternative is not recommended because the negotiating period for this annexation will expire
on May 5, 2018. In addition, County staff is not receptive to negotiating an individual
agreement with the City that is substantially different than the “master” tax exchange
agreement.
2. Direct staff to work with the County, and other cities in the county, to update the “master”
tax exchange agreement before approving an agreement for the San Luis Ranch annexation
area. This alternative is not recommended because such an effort would involve a substantial
amount of time to accomplish and should be initiated outside of the negotiations of any
particular annexation. In addition, each annexation provides an opportunity for City staff to
discuss the fundamental principles of the 1996 Agreement and policy with County staff. The
underlying assumptions behind the tax exchange agreement are still valid and changes to the
policy are not warranted at this time.
Attachments:
a - Draft Resolution
b - Master Tax Sharing Agreement
c - Analysis of 1996 Tax Sharing Agreement
d - Vicinity Map
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Item 12
R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ACCEPTING A NEGOTIATED EXCHANGE OF
TAX REVENUE AND ANNUAL TAX INCREMENT BETWEEN THE
COUNTY OF SAN LUIS OBISPO AND THE CITY OF SAN LUIS OBISPO
FOR THE SAN LUIS RANCH ANNEXATION AREA, AS REPRESENTED
IN THE STAFF REPORT AND ATTACHMENTS DATED MAY 1, 2018
WHEREAS, the City of San Luis Obispo, a charter city and municipal corporation, wishes
to move forward with the annexation of the San Luis Ranch area; and
WHEREAS, the Revenue and Taxation Code Section 99(a)(1) requires that the amount of
tax revenue to be exchanged, if any, and the amount of annual tax increment to be exchanged
among the affected local agencies shall be determined by negotiation; and
WHEREAS, the Revenue and Taxation Code Section 99(b)(6) requires that each local
agency, upon completion of negotiations, adopt resolutions whereby said local agencies agree to
accept the negotiated exchange of property tax revenues, if any, and annual tax increment and
requires that each local agency transmit a copy of each such resolution to the Executive Officer of
the Local Agency Formation Commission; and
WHEREAS, no later than the date on which the certificate of completion of the
jurisdictional change is recorded with the County Recorder, the Executive Officer shall notify the
County Auditor of the exchange of tax revenues by transmitting a copy of said resolutions to him
and the County Auditor shall thereafter make the appropriate adjustments as required by law; and
WHEREAS, the negotiations have taken place concerning the transfer of tax revenues and
annual tax increments between the County of San Luis Obispo and the City of San Luis Obispo
pursuant to Section 99(a)(1) for the jurisdictional change designated as Annexation No. 80 to the
City of San Luis Obispo (San Luis Ranch); and
WHEREAS, the negotiating party, to wit: Emily Jackson, Division Manager, County of
San Luis Obispo, on behalf of the County and Michael Codron, Community Development
Director, City of San Luis Obispo, on behalf of the City have negotiated the exchange of tax
revenue and annual tax increments between such entities as hereinafter set forth; and
WHEREAS, it is in the public interest that such negotiated exchange of tax revenues and
annual tax increments be consummated.
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Item 12
Resolution No. _____ (2018 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Agreement. The City Council agrees to accept the following negotiated
exchange of base tax revenues and annual tax increment:
1. No base tax revenue shall be transferred from the County of San Luis Obispo to the City
of San Luis Obispo.
2. Annual tax increments shall be transferred from the County of San Luis Obispo to the City
of San Luis Obispo in fiscal year 2019-20 and each fiscal year thereafter in the amount of
one-third of the increment remaining after transfers to the Educational Revenue
Augmentation Fund (ERAF).
SECTION 2. Transmittal. The City Clerk is authorized and directed to transmit a certified
copy of the resolution to the Executive Officer of the San Luis Obispo Local Agency Formation
Commission, who shall then distribute copies in the manner prescribed by law.
Upon motion of _______________________, seconded by _______________________, and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
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Item 12
Resolution No. _____ (2018 Series) Page 3
R ______
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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Item 12
...
J<., ... T RESOLUTION NO. 01-96
A RESOLUTION OF THE CITIES
OF SAN LUIS OBISPO COUNTY ESTABLISHING A COUNTYWIDE POLICY FOR PROPERTY
·TAX EXCHANGE UPON ANNEXATION
WHEREAS, changing governmental fiscal relationships have required a modification to
the earlier approach to determining property tax exchange between cities and the County
upon annexation; and ·
WHEREAS, ttie extent and nature of this modification has been agreed upon through a
process of negotiation between the cities and the County based upon a shared goal of
producing a countywide tax exchange agreement that is fair to all parties; and
WHEREAS, a fair agreement is one that respects the following two principles: (1) that
the County should not "profit" from annexations, nor should annexations result In a net
fiscal loss to the County; (2) that tax exchange practices should not undermine good
land use planning by discouraging cities from pursuing logical and appropriate
annexations; and
WHEREAS, in order to provide objective data upon which to develop an equitable
agreement, the cities commissioned an independent fiscal study of the impact of
annexation and development of vacant lands around cities on County government; and
WHEREAS, the results of this study assisted in the development of a new countywide
tax exchange. agreement; and
WHEREAS, upon adoption· of the agreement, the County and the cities will continue to
collaborate on related matters of shared importance, including: (a) following adoption by
the Board of Supervisors, reconsidering a countywide development impact fee program, which may include appropriate city impact fees for county development occurring. in the unincorporated fringe of cities for which a clear City impact can be determined; and (b) support existing policies which encourage urban-like development within the boundariesof cities. · · ··
NOW, THEREFORE, BE IT RESOLVED by the City Councils ofthe Cities of San Luis Obispo County:
1.For "raw land" annexations prezoned commercial or industrial, the County. retains the existing proper ty tax base and all of the future property taxincrement. .
2.For annexations prezoned residential, the County retains theexisting property tax base and two-thirds (66%) of the future property taxincrement. ·
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Item 12
Aftachffentl
3. For commercial and industrial annexation areas already substantially
developed, tax exchange will be negotiated on a case-by-case basis
between the annexing city and the County to determine an appropriate
property tax-sharing arrangement, based upon the principle of fiscal
neutrality for the County.
4. For annexations prezoned agricultural, the County retains the' existing
property tax base and all of the future property tax increment.
5. The County and the cities agree to re-examine the above policies at five-
year intervals to assure that they remain appropriate and current for all
parties.
PASSED AND ADOPTED by the City Councils of the Cities of San Luis Obispo County
at a special joint meeting thereof held on the 25th day of April, 1996.
MAYOR OF ARROYO G ND
ATTEST:
a
CI CLEAK
MAYOR OF ATASCADERO
ATTEST: Not adopted)
CITY CLERK
MAYOR OF GR VER BEACH
ATTEST:
r ,
CITY CLERK
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Item 12
i
nt Z.
Resolution No. J01-96 Macage 3
MAYOR OF MORRO BA
ATTEST:
CITY CLER
MAYOR OF PASO ROBLES
ATTEST:
Not participating)
CITY CLERK
MAYOR OF PISMO BEACH
ATTEST: Not participating)
CITY CLERK
MAYO OF SAN LUIS OBISPO
ATTEST:
CLE
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Item 12
Crawford Multari & Starr
planning • economics public policy ·
June IO, 1996
Mayors of the Cities of San Luis Obispo County
c/o Allen Settle, Mayor
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403-8100
Dear Mayors,
Earlier this year! prepared an analysis of the fiscal effects on the county related to annexations.
This analysis was eventually used in the negotiation of a tax�sharing agreement between at least
some of the cities and the county. It seems that there is some confusion about the purpose ofmy
analysis and about the results. Perhaps this letter will help clarify the situation.
Our role in the tax sharing discussions. When representatives of the cities first engaged the
county's representatives regarding a standard tax sharing agreement for annexations, the coun · 's
ii:uti suggestion was that they s . ou retam · 1 property tax and should also receive a portion of
the sales tax, and perhaps even some of the TOT, as well. They argued tha:t With the reductions
in property tax revenues going to counties and mcreases in obligations, the county \vould
probably need that additional revenue just tQ "break even." I was contacted by Ken Hampian,
Bob Hunt and Rich Ramirez to analyze the actual effects of annexation on the county, to test
whether or not this assertion was valid. The county representatives agreed that some kind of
analysis of probable fiscal impacts would be valuable.
Our firm had recently developed a fiscal impact model for the county so that they could evaluate
different development proposals. \Ve modified that model so that we could look at the fiscal
effects on the county if the development occurred in an annexation area (rather than in the
unincorporated tenitory). The advantage of basing the analysis on the county's model was that
we could use many of the assumptions the county had already found reasonable. In this kind 9f
analysis, consensus on assumptions is an important starting point.
Please keep in mind that I was not part of the negotiation team, but I did have the interesting
experience of sitting in on several of the discussions that took place among representatives ofthe
cities and the county.
Our assignment was to determine how much property tax the county would need in order to
"break even", that is, so that the revenues coming to the county equaled the costs of providing
county services. We refered to that as "fiscal neutrality", that service costs would be just offset
by revenues. \Ve were asked to determine fiscal neutrality for the county, not for the cities.
641 Higuera St .. Suite 202 •· San Luis Obispo. CA 93401 . (805) 541-38.48 Fax .(805).fa;)Bi.1�9�· Packet Page 142
Item 12
ATTACHMENT?
Mayors
Annexation and tax sharing r
page 2
Statewide perspective. The League of California Cities retained our firm earlier this year to
survey cities throughout the state regarding issues related to annexations. We received responses
from 154 cities; 78 (51%)reported that they had encountered problems with tax sharing
agreements. In many cases, the county position is situp y that 100%of all property tax must go
to a counries after annexation. Examples where this is the case include San Joaquin,
Sacramento and Shasta counties.
Forty-four(29%) of our respondents stated that their county's position was not only that 100% of
the property tax should be passe .to the county but that a share of sales tax, as well. We
interviewed representatives of many of these cities to learn more about what kinds of tax sharing
agreements had been worked out. An example of how extreme these negotiations can go is the
City of Sonora. In a recent annexation there, the tax s wring agreement called for 10 percent of
the property tax increment, 8 percent of the sales tax; 72 percent o_the TOT, and development
impact fees averaging about S 1,000 per unit to go to the County of Tuolumne!
The results of our analysis of San Luis Obispo County. We found that in order for the county
to" break even,"they would need to continue to get all the property tax for non-residential
annexations (commercial and industrial) and about 2/3 of the tax for residential annexations.
Here's another way of looking at this. On average, in the unincorporated area, the county
receives only about 22%of the property tax. Our analysis found that for the county to break
even, they would need to get 22% after-annexation for commercial and industrial annexations
and about 14%for residential annexations.. (More precisely, the actual percentage was 13.5% --
a bit less than 2/3 of 22%.)
This also means that after annexation, the city would receive no property tax for commercial and
industrial annexations and about 7.4%of the property tax for residential annexations.
The commercial situation. At first blush, it may seem imbalanced that the county receives all
the property tax in the case of commercial annexations. However,the city has kept all the sales
tax. The sales tax income simply overwhelms the property tax. Consider a hypothetical case of
a 100,000 square foot shopping center.. In the analysis we assumed an assessed value of$80 per .
square foot. This is probably high for most modern tilt-up construction,but let's use it for our
example. If the county received its fu1122% of the property tax,that equals about$17,600 in
property tax. The projected sales tax from a retail center of that size is about$175,000 per year,
almost exactly 10 times as much.
Let's consider how much property tax the city actually"gives away"in this hypothetical case.
First of all, it is important to keep in mm at since ERAF and other property tax"grabs"by the
Crawford Multari&Starr planning economics._ public policy_
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state, the county's position in terms of property tax has significantly eroded. Within the cities,
the county receives on average about 18%of the property tax and cities, on average,receive
about 16%. Thus, a city and the county share about 34% of the property tax. In unincorporated
areas, as noted above, the county gets only about 22%of the property tax. Thus, the amount that
the city and county can share after annexation, the amount they can actually negotiate over, is
only 22%. Thus, it is entirely unrealistic for cities to expect to continue to receive as much as
16% of the property tax after annexation.
But let's assume that the current ratio of county to city shares is maintained in splitting up that
22%. That would work out to about 10.3% for the city and about 11.7% for the county(16:18
10.3:11.7, approximately). If we assumed this was the baseline,how much did.the city lose by
giving the county all the property tax? It works out to about$8,000. Again,the sales tax.is
estimated at $175,000-- almost 22 times as much. Thus, from the perspective of an overall fiscal
strategy, the trade-off of a small amount of property tax for much greater sales tax not to
mention business license taxes and other revenues like TOT) seems reasonable.
Another interesting point about property tax is that Proposition 13 limits re-assessments to only
2%per year. If inflation is above 2%, then the property tax income, in constant dollars, actually
declines each year. Sales tax,however, generally keeps pace with inflation as prices for goods
rise. For example, if inflation runs at 4%,that$8,000 that the city gave up will be worth less
than$6;500 ten years later even with.the annual maximum increases allowed by Proposition 13.
Thus, given the two income sources,the sales tax is by far the larger and more likely to keep up
with inflation.
The industrial picture. Here again, the city position was to give up the entire property tax to
the county. While the sales tax benefit from the commercial case was easy to illustrate, what
income accrues to the city in the case of industrial? While not as generous as in the case of a
retail center, industrial areas still produce significant sales tax. The examination of virtually any
industrial area reveals that there is considerable retailing going on.
For example,we were recently retained to assist with the annexation of an already developed
area in the city of Patterson. The subject properties were considered to be"industrial." The total
property tax that the city and county could negotiate over amounted to about$2,400. However,
e sales tax generated among the various uses was over$30,000. Clearly,the city was not so
concerned with property tax as with getting the sales tax.
Other examples may help illustrate the point that"industrial" areas actually contain activities that
generate substantial sales tax-- not nearly so significant as a retail center,but generally much
more than property tax.
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Consider the"Airport Area"south of San Luis Obispo. This has been zoned"industrial"for
decades. A study performed by Angus McDonald found that the area generated approximately
370,000 per year in sales tax. Keep in mind that this is an"industrial"district. Furthermore,
McDonald's report estimated that this area would generate a net revenue to the city(today,
without further development) of$570,000 per year without any property tax going to the city.
Another area presently in the City of San Luis Obispo is probably representative of the mix of
uses one might find in"industrial"districts. The area east of lower Higuera Street between Tank
Farm and Prado Roads includes Hind Performance, San Luis Sourdough,The Spice Hunter,JBL
Scientific and several other light industrial and"heavy"commercial land uses. In 1994-95 this
area generated over$160,000 in sales tax to San Luis Obispo. Interestingly,the amount of sales
tax produced by this area has been climbing throughout this decade, averaging an increase of
almost 15%per year, despite the recession.
The case of residential annexations. While one can easily demonstrate that commercial
annexations will be net revenue generators.for cities, and that this is also likely true for industrial
annexations --at least the way industrial areas actually are built out--one can not be so sanguine
about residential projects. The fiscal impacts of new residential growth is quite idiosyncratic
from place to place,varying with the amount and type of services provided by the city,
household size, the valuation of the units, local sales tax capture and other factors. .
However,with regard to the property tax, it should be kept in mind that the amount of money in
absolute dollars is quite small. Consider a hypothetical case of a single family house.
Fust of all, there is the question of the"base"before annexation. Tax sharing agreements
generally require that the existing base,that is, the amount the county presently receives in
property tax,continues to go to the county. It is just the increase, or increment, that is shared
after annexation. We assumed that to be true in our analysis. However, we also assumed that for
raw land, outside the city limits,with neither annexation nor entitlements,the value for property
tax purposes is generally quitelow. Discussions with some local developers suggested that the
assessed value of this land for tax purposes (again,prior to annexation or any entitlement)would
probably by less than$20,000 per acre. Let's double that for argument's sake to $40,000 per
acre. Thus, at a post-annexation density of four units per acre,the"base" for property tax
purposes for each unit would be$10,000. The county receives about$22 in property tax on that.
Now,after annexation the land is subdivided and approved. A house is built and sold for
150,000. The increment is$140,000. The total property tax from the increment is I%of that or
1400. The city and county get to split 22% of that, or about$308. If we assume the current
average ratio of county-city shares (see above),the city would get$144 and the county$164.
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ATTACHMENT 3- -
Mayors
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The newly proposed tax sharing agreement would change these amounts to$103 for the city and
205 for the county. Thus,the city has given up $41 per house to the county.
In these difficult fiscal times, giving up any revenue is a problem. But one should keep in mind
e magnitu e of the issue at hand.
Conclusion. It is not my role to say whether the proposed agreement meets the needs of
individual cities. However, it appears to me that for any commercial annexation, and for most
industrial annexations that can be imagined,the loss of property tax is recompensed many times
over by sales tax(and perhaps other revenues as well). In the case of residential,there is a shift
of some property tax to the county from, at least, a theoretical baseline. However,the amount of
money involved is quite small; it seems other variables besides these small sums would be much
more important in a community's decision as to whether or not a particular annexation makes
sense.
I hope this is helpful. I would be pleased to attend one of your"Mayors' Group" meetings to
help answer questions and to discuss this interesting and difficult topic -- one that I can assure
you is being debated in many cities and counties throughout the state.
Thank you.
Sincerely,
6uzCCG 7
Michael Multari
cc: Councilmembers and City Managers
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Item 12
Meeting Date: 5/1/2018
FROM: Greg Hermann, Interim Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: COUNCIL COMPENSATION COMMITTEE RECOMMENDATIONS
RECOMMENDATION
As recommended by the Council Compensation Committee:
1. Adopt a Resolution (Attachment A) entitled “A Resolution of the City Council of the City
of San Luis Obispo, California, setting new salaries for the Mayor and Council Members,”
increasing compensation by 10% for the Mayor and Council Members, effective the first
full payroll period in January 2019.
2. Adopt a Resolution (Attachment B) entitled “A Resolution of the City Council of the City
of San Luis Obispo, California, increasing compensation for Architectural Review
Commission and Planning Commission Members” from $60 to $70 per meeting, not to
exceed $280 per month, effective July 1, 2018.
DISCUSSION
Background
The City of San Luis Obispo's Charter (Section 410) requires that a Council Compensation
Committee be formed during even numbered years to review the Mayor's and Council Members'
compensation. Recommended adjustments would then become effective the following January
for the next two-year period. Additionally, in 2001 Council adopted Resolution No. 9189,
directing a review of compensation for Architectural Review Commissioners and Planning
Commissioners in conjunction with its periodic review of Council compensation, as set forth in
the Council Policies and Procedures.
The 2008 Council Compensation Committee concurred that it is important that small incremental
increases should be made during each two-year review. Members, therefore, recommend a 3%
increase per year based on the approximate 3% Consumer Price Index (CPI) over recent years,
for a total increase of 6%. This equaled a $60 monthly increase for each Council Member and
$72 monthly increase for the Mayor, effective January 1, 2009. On September 30, 2008, Council
considered short-term actions to rebalance the Fiscal Year 2008-09 Budget and determined to
rescind the Council’s prior action to increase its salary.
In 2010 and 2012 Council determined to defer the entire process for appointing a Council
Compensation Committee.
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The 2014 Council Compensation Committee recommended the monthly compensation increase
for the Mayor of $300 per month ($1,200 to $1,500) and an increase of $100 for Council
Members ($1,000 to $1,200). Council was also provided the option to “opt out” of medical,
dental and vision coverage so that the individual member would receive the “opt out” amount
equal to City Department Heads.
In 2016 Council deferred the entire process for appointing a Council Compensation Committee.
On October 3, 2017, Council appointed the following five members to the Council
Compensation Committee: previously elected official John Ewan, Personnel Board
representative Frank Guyton, and, citizens-at-large Dale Stoker, Louise Matheny, and Brett
Strickland.
Committee Meetings and Review
This committee met on November 29, 2017, January 17, 2018, February 21, 2018 and concluded
its business on March 28, 2018. The minutes of the meetings are included in Attachment A.
Members reviewed the full Council compensation package including salary, benefits, expense
reimbursement, professional development allowances and other compensation provided. In
addition, the Committee compare the Council’s compensation package with that of other Mayors
and Council Members in 9 other cities (Charter and General Law). As part of the review, the
Committee also examined survey results of what the same cities pay their Planning Commission
and Architectural (or Design) Review Committees, if applicable. The Committee updated the
previous used questionnaire for past members of City Council, Planning Commission,
Architectural Review Commission. The Committee’s recommendation was based on the time
commitment and the value to the community the Council provides. (Attachment B)
Planning Commissioners and Architectural Review Commissioners
The compensation for Architectural Review Commissioners and Planning Commissioners was
increased in 2001 from $25 to $50 per meeting, with a maximum not to exceed $200 per month.
The surveys conducted in 2004, 2006, and 2008 indicated that the stipends paid by the City had
remained competitive and the Council Compensation Committee did not recommend an increase
at that time. In 2014, Architectural Review Commission and Planning Commission
compensation be increased from $50 to $60, not to exceed $240 per month.
The Committee began its work evaluating compensation prior to the time that process and
purview changes started to materialize for both the Planning Commission and Architectural
Review Commission. If substantial changes are of purview are adopted as part of the Zoning
Ordinance update, City Council may want to re-evaluate the compensation for these
commissions.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines sec. 15278.
FISCAL IMPACT
The monthly salaries of the Mayor and Council Members would be increased by 10% ($1,500 to
$1,650 and $1,200 to $1,320 per month, respectively). The compensation package for expenses,
benefits and professional development would remain unchanged. This increase to salaries will
increase the Council’s annual budget for Fiscal Year 2018-19 by $3,780 and $7,560 annually
thereafter.
The increase to compensation for the Architectural Review Commission and Planning
Commission from $60 to $70 per meeting not to exceed $280 per month would result in an
increase not to exceed $3,920 annually.
ALTERNATIVES
1. The City Council could decide not to adopt the Compensation Committee’s recommendation
and leave the Mayor and Council Members compensation the same.
2. The Council could decide not to adopt the Compensation Committee’s recommendation and
not increase the stipend for Planning Commissioners and Architectural Review
Commissioners.
Attachments:
a - Resolution - Council Compensation
b - Resolution - PC & ARC Compensation
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R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, SETTING NEW SALARIES FOR THE MAYOR
AND COUNCIL MEMBERS
WHEREAS, Charter Section 410 provides for compensation and reimbursement of
expenses for the Mayor and Council Members and establishes a procedure for a biennial review
by a five-member Council Compensation Committee; and
WHEREAS, a five-member Council Compensation Committee was appointed and has
met and reviewed Mayor and Council Member compensation in accordance with the procedure
provided by the Charter; and
WHEREAS, the Council Compensation Committee has determined that the present
criteria for compensation remain valid. However, an adjustment is now appropriate particularly
in light of the significant demands associated with the official duties of the Mayor and Council
Members.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Chapter 2.1 of the Council Policies and Procedures shall be amended to read
as follows:
Effective the first full payroll period in January 2019, compensation for services rendered
in an official capacity shall be provided as follows: The Mayor shall receive a monthly salary of
$1,650 per month and each City Council Member shall receive a monthly salary of $1,320.
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Resolution No. _____ (2018 Series) Page 2
R ______
SECTION 3. Resolution Number 10515 (2014 Series) is hereby repealed and superseded
to the extent inconsistent herewith.
Upon motion of _______________________, seconded by _______________________, and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, INCREASING COMPENSATION FOR
ARCHITECTURAL REVIEW COMMISSION AND PLANNING
COMMISSION MEMBERS
WHEREAS, Council Policies and Procedures Section 2.6 establishes a procedure for the
biennial review of Mayor and City Council, Architectural Review Commission, and Planning
Commission members compensation by a five-member Council Compensation Committee; and
WHEREAS, a five-member Council Compensation Committee was appointed and has
met and reviewed Architectural Review Commission, and Planning Commission members
compensation in accordance with the procedure provided by the Council Policies and Procedures;
and
WHEREAS, the Council Compensation Committee has determined that the present
criteria for compensation remain valid. However, an adjustment is appropriate for the
Architectural Review Commission and Planning Commission members.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Effective July 1, 2018, compensation for Architectural Review Commission
and Planning Commission members is hereby increased from $60.00 to $70.00 per meeting, not
to exceed $280.00 monthly.
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Resolution No. _____ (2018 Series) Page 2
R ______
SECTION 2. Resolution Number 10516 (2014 Series) is hereby repealed and superseded
to the extent inconsistent herewith.
Upon motion of _______________________, seconded by _______________________, and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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Item 13
Meeting Date: 5/1/2018
FROM: Derek Johnson, City Manager/ Acting Finance Director
Prepared By: Kristin Eriksson, Purchasing Analyst
SUBJECT: CHANGES TO PURCHASING POLICIES FOR ERP IMPLEMENTATION
RECOMMENDATION
Adopt a resolution to amend purchasing guidelines related to the implementation of the City’s
new Enterprise Resource Planning (ERP) financial system and to revise purchasing authority
thresholds.
REPORT-IN-BRIEF
Several purchasing policy updates are recommended as part of the Motion project and the design
of the Enterprise Resource Planning (ERP) system being implemented by the City. The changes,
discussed below, must be approved by the Council by resolution (Attachment A).
DISCUSSION
Background
In 2015, the City contracted with the Government Financial Officers Association (GFOA) to
conduct an assessment of the Finance Department. In their key recommendations, GFOA
identified “ripple effects” often with negative impacts on other parts of the organization due to
outdated systems and business process. The “ripple” effect created redundant process and
additional work required in other departments. It identified the use of inadequate systems driving
an over-reliance on manual or “side” systems, complicated business processes, and confusion
around assignment of duties, as responsibilities and expectations expanded, without additional
staff (e.g. new or additional work is given to a person because of availability not skill set or work
flow) and a lack of processes and tools to effectively communicate with the public.
The following recommendations were made by GFOA:
1) Immediately address the lack of a complete financial system
2) Align a chart of accounts with business requirements and system capabilities
3) Streamline ineffective business policy and process
4) Clarify roles and responsibilities and implement service level agreements for all central
functions.
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GFOA concluded that these core issues represent the most significant problems faced by the
City’s Finance function and cause ripple effects throughout all City departments. In other words,
over time, the Finance Department has blurred lines of responsibility as staffing levels have
decreased and responsibilities have increased. This combined with an outdated financial system
inhibits the department’s ability to improve efficiency and effectiveness even with temporary
resources.
The GFOA report was presented to Council on April 19, 2016 with the above four
recommendations and the Council approved the implementation of an Enterprise Resource
Planning (ERP) software system in th e 2016-17 Supplemental Budget as part of the
Organizational Effectiveness and Efficiency Initiative. The Motion project team selected Oracle
Cloud as the new ERP software which will, in addition to facilitating integration of processes in
the Finance and Human Resources, will provide a workflow mechanism that will enable the
creation of functional role and responsibility tiers with approval limits.
As part of the Motion project discussed above, the Purchasing Division (Purchasing) developed a
high-level purchasing policy and procedure plan. The plan was designed with input from GFOA,
the City’s Motion Project Core Team, the City Fiscal Officers and other City department staff to
provide for a purchasing system that is in line with best practices for municipalities, legal
requirements and Generally Accepted Accounting Principles (“GAAP”) compliance. The plan
was also designed to work in the context of the City’s new financial system, which is planned to
“go-live” in October of 2018. The following proposed policy changes are in line with that plan
and recommendations from the City’s consultants from Sierra-Cedar who are implementing the
new ERP system.
Purchasing Requisition Process (New Section 202 of the Financial Manual)
Prior to the creation of the City’s new Purchasing Division, departments managed all purchasing
activity and created their own Purchase Orders (POs). Since the development of the Purchasing
Division, departments submit POs in an interim approval workflow, in which budget and
purchasing approvals are applied. While this development has created greater oversight for City
purchasing and more consistent enforcement of City purchasing rules, including solicitation
requirements and approval requirements, current policy does not include a requisition process
and allows for all purchases of $7,500 or less to be made without any Purchasing involvement.
This means that smaller purchases, under the $7,500 threshold, are made by departments without
prior approval from Finance and that there is no allocation of funds in the City’s existing
financial system until invoices are received for payment. Therefore, commitments to vendors are
made without ensuring that funds exist to support those commitments
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Under the proposed updates to the City’s purchasing guidelines (Attachment B, Recommended
Purchasing Guidelines Update, Sections 202 and 204), City staff will only be authorized to make
purchases by submitting a Purchase Requisition (PR) into the City’s financial system; by using a
City Purchasing Card for low value, permitted purchase types; or by making an emergency
purchase, as defined by Section 3.24.060(B) of the Municipal Code. This process is a best
practice for public purchasing and is recommended by GFOA and other national public
purchasing organizations. This process is also utilized by federal and state entities, most of the
City’s benchmark cities and is in compliance with the CA Public Contracting Code.
PRs will be approved within the system, according to defined tiers (Attachment B,
Recommended Purchasing Guidelines Update, Exhibit 202-A). This will ensure that funding is
allocated or pre-encumbered in the system for accurate and transparent accounting.
Additionally, by making sure that most purchases are recorded in the financial system, City staff
will be able to timely and accurately report on purchasing volume by purchase type, in order to
achieve cost savings through blanket agreements for commonly purchased items.
An approved PR will then be converted into a PO by the Purchasing Di vision after all required
competitive bidding and contracting processes are completed. The issuance of the PO will create
a final encumbrance of the funds underlying the purchase. POs will also serve as the contract
with vendors if no formal agreement is required, insuring that most City transactions are
governed by the City’s general terms and conditions.
Purchasing Approval Structure and Thresholds
1. New Purchasing Types (Amended Section 201 of the Financial Manual)
The City currently has three categories of purchases which determine the approval limits and
purchasing processes that must be followed: General Purchases, Public Projects and Consultant
Services. Staff is recommending that the City expand these categories to allow for greater
flexibility in setting certain approval thresholds. The proposed categories are General Goods,
General Services, Public Projects, Consultant Services and IT Systems purchases. (Attachment
B, Recommended Purchasing Guidelines Update, Section 201).
Staff is recommending the addition of a general goods category with more lenient approval
thresholds. General goods purchases are lower risk than other purchases and, therefore, require
less oversight. The selection and evaluation of tangible goods is generally rather simple. Unlike
services, which involve possible risk factors related to risk management and intangible activities,
goods purchases are a basic delivery of a tangible product.
Staff is also recommending the addition of an IT systems category with more stringent approval
thresholds than general services. An IT system is a combination of hardware, software,
infrastructure and, in some cases, implementation services. Purchases of such systems require
greater oversight than general services because selection of an IT system may have city-wide
effects (such as the selection of the City’s new ERP system) and often have long term
implications.
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2. New Purchasing Approval Process (New Section 202 of the Financial Manual)
Currently, the City has several mechanisms for approvals of purchases, including Council
Agenda Reports, City Manager Reports, and the interim SharePoint PO workflow. Because
approvals are made through various processes in multiple locations (i.e.: Accela, network drives,
SharePoint), the audit trail of the process can be difficult to track. Additionally, staff time is
often ineffectively used in authoring lengthy memoranda in order to obtain authorization for
relatively routine purchases.
The City’s new ERP system is designed to process all purchasing approval workflows through
the system. This will provide greater efficiency in seeking approvals and will ensure all
necessary documentation and approval actions will be maintained in one place and will be easily
accessible. City staff is proposing that all approvals, other than Council approvals, be
administered in the ERP system, following a workflow that is determined by purchase type and
the level of required approvals or tiers. (Attachment B, Recommended Purchasing Guidelines
Update, Exhibit 202-A). The tier structure will govern PR approvals, which will include
approval of RFPs, specifications, budget and appropriateness of the purchase and PO approvals,
which will include approval of the purchasing process and contract awards.
3. New Purchasing Approval Thresholds (New Exhibit 201-A of the Financial Manual)
The Council established the existing purchasing approval structure in 2015. (Attachment C).
Several factors have changed since that time including basic inflation of the cost of goods and
services; the development of a City Purchasing Division, which provides additional oversight of
and assistance with purchasing processes; the development of new purchasing policies which
increase transparency and accountability in city purchases; and the implementation of the City’s
new ERP financial system, which will provide systemic controls of purchasing activity (e.g.
budget controls will not allow unfunded purchase requests to process). These factors support
adjusting existing approval thresholds to allow for greater flexibility and efficiency in purchasing
while still maintaining appropriate controls.
The City uses a set of benchmark cities when comparing municipal operations: Monterey, Santa
Cruz, Palm Springs, Napa, Santa Maria, Davis, Paso Robles and Santa Barbara. Research was
conducted to compare purchasing policies and procedures. (Attachment D). City staff
determined that three of these cities; Santa Barbara, Santa Maria and Santa Cruz, are the most
similar to the City’s proposed purchasing structure. The thresholds for these cities are very close
to those City staff is recommending to the Council. (Attachment B).
The new thresholds will have some effect on competitive bidding requirements, allowing for an
informal quotation process for higher value purchases for general goods and public projects.
(Attachment E). However, these procedures are in line with those of the benchmark cities
discussed above (Attachment D).
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Solicitation Guidelines (New Section 203 of the Financial Manual)
The City’s competitive bidding requirements are set forth in Section 3.240.060 and Articles II
and III of Chapter 3.24 of the Municipal Code. City staff recommends adding Section 203 to the
City’s purchasing guidelines to provide staff with guidance in conducting solicitations for goods
or services purchases. (Attachment B).
No Bid Purchasing (New Section 204 of the Financial Manual)
Emergency and sole source purchases, as well as utilization of cooperative purchase agreements
are permitted under Section 3.24.060 of the Municipal Code. City staff recommends adding
Section 204 to the City’s purchasing guidelines to set forth the procedure staff should follow in
making these types of purchases. (Attachment B).
Updates to the City’s Business License Requirement for Transacting with the City (New
Section 215 of the Financial Manual)
1. Setting Forth the Requirement
The City requires most entities who transact with the City to obtain a Business License, pursuant
to Chapter 5.01 of the Municipal Code. However, many staff members were not aware of this
requirement and/or did not inform vendors of the requirement before entering into a contract or
transacting with the vendor. City staff recommends adding Section 215 to the Financial Manual
to to provide clear guidelines for the business license requirement and consistency for vendors
transacting with the City.
2. Waiver for Specified Purchases
Under Chapter 5.01, there are three exceptions to the business license requirement for businesses
that are owned and operated solely by minors under the age of 18; charitable, religious and
nonprofit organizations; and any businesses for which requiring a business license would violate
Federal or State laws or contractual agreements. Under Section 5.01.501, the Finance Director is
granted adjustment powers to reduce or waive the business license requirement.
Organization-wide feedback has indicated that the business license requirement can lead to
problems in making purchases in some cases and cause a great deal of delay and staff t ime when
vendors refuse to comply with the requirement. That feedback has also indicated that three
purchase types are the most problematic in complying with the business license requirement:
purchases with out-of-state vendors; online purchases; and low value purchases. Several out-of-
state companies were concerned about the state and local tax implications of obtaining a business
license when they otherwise do not do business within City limits. Some of those companies,
including sole source providers, refused to do business with the City if the requirement was not
waived. Further, the cost of obtaining a business license often exceeded any possible financial
benefit for vendors entering into low cost, one-time transactions with the City, resulting in
vendors increasing their fees to cover the cost, thus negating the benefit of obtaining the fee.
Finally, when making online purchasing with businesses outside of the City, it is nearly
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impossible for City staff to enforce the business license requirement. Attempting to do so would
require significant staff time and could greatly reduce online purchasing opportunities.
Based on this feedback, City staff recommended that the Interim Finance Director waive the
business license requirement for out-of-state and online purchases and to allow for the
Purchasing Division to allow case-by-case waivers for low value (less than $5,000) purchases
with entities that have a limited nexus with the City. The vast majority of City purchases and all
purchases with vendors within the City will continue to be subject to the City’s business license
requirement. City staff recommends adding New Section 215 to memorialize these waivers.
(Attachment B).
Updated Purchasing Guidelines Summary (Amended Section 295 or the Financial Manual)
City staff recommends amending Section 295 of the Financial Manual, which summarizes
purchasing approvals and solicitation requirements to be consistent with other policy changes
made by the proposed resolution. (Attachment B).
CONCURRENCES
Staff conducted several brainstorming and process mapping sessions throughout the past year
with GFOA, Fiscal Officers, Motion Project leads, and subject matter experts in various City
departments which focused on examining existing processes and designing the City’s future
purchasing policies and procedures after the implementation of the ERP system and with a focus
on process improvement. Staff has also worked with consultants from Sierra-Cedar, the
implementer of the ERP system, to design the recommended policies in line with the best
practices for that system.
FISCAL IMPACT
There is no direct fiscal impact to this policy change, however, t he policy changes being
recommended streamline purchasing procedures, saving staff time. The policies also allow for
greater transparency and control in purchasing activities, allowing for cost savings associated
with setting up blanket purchasing contracts when appropriate.
ALTERNATIVES
1. Do not change City Purchasing Guidelines. This is not recommended because t he updated
policies are necessary for effective use of the City’s new ERP system. Further, the City’s
goal to enhance productivity and efficiency through purchasing process improvement will
not be met.
2. Recommend different policy updates and approval thresholds. This is not recommended
because City staff has spent the past year designing these policy changes and recommended
thresholds are justified by benchmark analysis and the implementation of the new ERP
system.
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Attachments:
a - Draft Resolution
b - Recommended Purchasing Guidelines Update
c- Resolution 10621 (2015 Series)
d - Benchmark Cities Comparison
e - SLO Threshold Comparison
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R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, UPDATING THE CITY’S PURCHASING
POLICY GUIDELINES
WHEREAS, in the course of conducting City operations it is necessary to purchase a broad
range of goods and services; and
WHEREAS, in addition to the requirements of the City’s Charter, the Council has adopted
policies and procedures as set forth in Chapter 3.24 of the Municipal Code that require the Council
to specify by resolution the dollar amount of purchases and contracts requiring the use of either
open market or formal bidding procedures, and the level of authority required to authorize
solicitations, award contracts or approve Job Order Contract Task Orders; and
WHEREAS, the Council adopted Resolution No. 16021 (2015 Series) which set forth
existing purchasing guidelines and authority levels; and
WHEREAS, on December 16, 2014, the City Council amended the Productivity section
of the City budget policies to include, “Maintaining City purchasing policies and procedures that
are as efficient and effective as possible;” and
WHEREAS, the City has contracted to implement a new Oracle Cloud Enterprise
Resource Planning (ERP) financial system by October of 2018, which will greatly increase
transparency and accountability in City purchasing activities; and
WHEREAS, the subject changes to the Purchasing Guidelines will streamline purchasing
processes, while maintaining appropriate checks and balances; and
WHEREAS, Council desires to update existing guidelines to reflect current conditions and
implement improved procedures, including implementing a purchase requisition process, adjusting
approvals procedures and thresholds and adding guidance on procedures for solicitations, sole
source purchasing, emergency purchasing and business license compliance related to purchases.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
that:
SECTION 1. The City’s Financial Manual purchasing guidelines are hereby amended as
set forth in Exhibit A which shall be implemented upon the official go-live date for the Oracle
ERP System in October of 2018.
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Resolution No. _____ (2018 Series) Page 2
R ______
SECTION 2. Resolution Number 10621 (2015 Series) is hereby amended and superseded
to the extent inconsistent herewith.
Upon motion of _______________________, seconded by _______________________, and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
Interim City Clerk
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Financial Management Manual
Purchasing Policy Update – October 2018
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Section 201
OVERVIEW
The purpose of this chapter is to guide staff members in purchasing goods and services on behalf
of the City by establishing responsibilities and authorization levels, outlining statutory
requirements, and setting forth the policies and procedures that govern purchasing activities.
These guidelines are not intended to address every issue, exception or contingency that may arise
in the course of purchasing activities. Accordingly, the basic standard that should always prevail
is to exercise good judgment in the use and stewardship of City resources. Any questions about
purchasing activities or proper purchasing process should be referred to the City’s Purchasing
Division.
PURCHASING SYSTEM OBJECTIVES
Along with three other key policy documents— the City Charter, purchasing ordinance (Chapter
3.24 of the Municipal Code) and purchasing resolution—the policies and procedures set forth in
this chapter form the City's purchasing system. This system has been developed in order to
achieve the following objectives:
■ Secure goods and services at the lowest cost possible commensurate with quality
requirements and the City’s needs.
■ Establish authority, responsibility and accountability for purchasing activities conducted on
behalf of the City.
■ Ensure appropriate levels of competition and provide an equal opportunity for all qualified
vendors to do business with the City.
■ Ensure compliance with purchasing policies and procedures.
■ Standardize procedures where appropriate to ensure that organization-wide policies and goals
are achieved.
■ Implement simple yet effective internal control procedures that appropriately support
planning, maximize productive use of public funds and protect City assets from unauthorized
use.
■ Coordinate organization-wide purchasing activities for commonly used items.
INTRODUCTION
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Introduction
PURCHASING AUTHORITY
The City's purchasing ordinance delegates purchasing authority to the City Manager as well as
any other representatives designated by her or him:
■ Developing and prescribing such administrative policies, forms and files as may be
reasonably necessary for the internal management and operation of City purchasing policies
and procedures.
■ Purchasing or contracting for supplies, equipment, services and construction projects as
required by the operating departments in accordance with City purchasing policies and
procedures.
■ Negotiating and recommending execution of contracts.
■ Ensuring appropriate levels of competitive bidding for all purchases.
■ Ensuring compliance with purchasing policies and procedures.
PURCHASING FUNCTION
The City’s purchasing functions is centralized within the Finance Department, Purchasing
Division, that coordinates purchasing processes and monitors compliance with the policies
contained in this manual. The Purchasing Division is managed by the City’s Purchasing Analyst
under direction of Finance Director.
The Purchasing Division shall be independent from other departments and the independent
exercise of procurement authority is an important piece of the City’s overall system of internal
controls.
To provide effective purchasing services throughout the City, the Purchasing Analyst shall be
tasked with:
• Be aware of the needs of City departments and acquainted with sources and availability of
supplies, equipment, and certain services which will best fulfill these needs. This requires
an ongoing dialog with City departments in which their needs are discussed and during
which Purchasing indicates information required and lead-times necessary to complete
procurement transactions.
• Arrange interviews between suppliers and representatives of the various City divisions to
discuss specific needs.
• Coordinate bidding processes in compliance with these Policies.
• Purchase all items at pricing and terms most advantageous to satisfy the normal needs of the
City for a reasonable length of time.
• Process purchasing requests as expeditiously as possible, in a manner consistent with these
Policies.
General responsibilities for setting and implementing purchasing system policies and procedures
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are summarized in Exhibit 201-A.
PURCHASING SYSTEM OVERVIEW
Regardless of the type of item or service being acquired, virtually every purchase transaction
goes through seven distinct stages in varying degrees:
■ Assessing and determining resource needs.
■ Developing specifications.
■ Soliciting and evaluating quotations, bids or proposals.
■ Selecting the best proposal.
■ Awarding the contract or purchase order and authorizing work to proceed.
■ Receiving and inspecting goods or services to ensure they conform with specifications.
■ Paying the vendor when contract terms have been met.
The type of purchase as well as its estimated cost determine the formality with which each stage
is completed and documented. For this purpose, the City has identified five basic types of
purchases:
■ General Goods Purchases. Contracts and purchases for supplies and equipment, including
basic IT equipment.
■ General Services Purchases. Contracts and purchases for operating and maintenance
services, including basic IT maintenance services.
■ IT Systems Purchases. Contracts and purchases of large-scale IT systems.
■ Public Projects. Construction, reconstruction, erection, alteration, renovation, improvement,
demolition, painting, repainting, and repair work involving any publicly owned, leased, or
operated facility (Public Contract Code 22002c).
■ Consultant Services. Professional work provided to the City by specially trained and
experienced individuals or firms regarding economic, financial, engineering, planning,
architectural, environmental, legal or administrative matters.
Procedural categories, purchasing authority levels and features for each of these purchase types
are summarized in Exhibit 202-A.
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Purchasing System Responsibilities Exhibit 201-A
■ Approve City Charter
■ Adopt purchasing ordinance.
■ Adopt resolution setting purchasing guidelines.
■ Approve Requests for Bids (IFBs) and Requests for
Proposals (RFPs) documents for purchases specified in
Section 202.
■ Delegate authority to award contracts if they are within
budget to the City Manager.
■ Award contracts if they exceed the approved budget from
the RFB/RFP.
■ Implement purchasing policies.
■ Delegate purchasing authority.
■ Approve RFB’s/RFP’s for purchases specified in Section
202.
■ Award contracts as specified in Section 202.
■ Develop and implement purchasing guidelines.
■ Monitor and evaluate system performance.
■ Set payment schedule.
■ Approve Purchase Requests as specified in Section 202.
■ Develop and implement city-wide purchasing
procedures
■ Review and approve purchase orders and contracts for
proper authority and terms.
■ Route contracts for signature and maintain complete
database for all goods and services contracts.
■ Assist departments in development of solicitations (RFB,
RFP, RFQ, Quick Quote, etc.).
■ Create and manage master agreements and Blanket
Purchase Orders for centralized and aggregate
purchasing (e.g. office supplies; off-site copying,
scanning and document destruction).
■ Approve RFB Specifications for public projects.
■ Approve Job Order Contract (JOC) task orders for public
projects as specified in Section 202.
Voters
City Council
Purchasing Authority
(City Manager/Designee)
Finance Director/Budget
Manager
Purchasing Analyst
City Engineer
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■ Develop and implement departmental purchasing
procedures.
■ Delegate departmental purchasing authority.
■ Approve departmental Purchase Requests and award
departmental contracts as specified in Section 202.
■ Purchase, receive and pay for goods and services in
accordance with City and departmental guidelines. ■ Approve invoices or payment requests for departmental
purchases. ■ Notify potential vendors/contractors of City Business
License requirement
■ Maintain required purchasing records.
■ Manage departmental inventories.
Department Heads
Authorized Employees
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Section 202
PERMITTED PURCHASING METHODS
There are three methods for departments to use to acquire goods and services:
1) Purchase Requisition/Purchase Order
2) City Credit Card (Purchasing or P-Card)
3) Emergency Purchases
For small or recurring purchases, the City encourages authorized employees the use of the City P-
Card (See Section 275). Exceptions to this rule may be set forth by Accounting Procedures Section
of the Financial Manual allowing the City Finance Department and/or Fiscal Officers payment with
credit card for specific purchases. For all other purchases, departments must use the requisition
process defined below:
Purchase Type Dollar Threshold Requirements
Purchase Requisition $0 – Unlimited Must obtain all approvals
required in this Section
below
P-Card $0 – $5,000* Not Permitted for large
purchases, purchases for
services, Capital Items
Emergency Purchase NA ONLY if there is an
immediate and serious
need for equipment,
supplies, or services that
cannot be met through
normal purchasing
procedures and where the
lack of such equipment,
supplies or services would
seriously threaten the
functioning of City
government, the
preservation of property,
or the health or safety of
any person;
* Limit can be raised with Department Head approval.
PURCHASE REQUISITIONS AND PURCHASE ORDERS
Purchase Requisitions
All Purchase Requisitions, with the exception of purchases with a P-Card or Emergency Purchases,
must be done through a Purchase Requisition. A Purchase Requisition is an internal document
PURCHASING PROCESSPURCHASING PROCESS
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(electronic form) created in the City’s financial system that:
• Initiates an order by one or more departments;
• Identifies the equipment, materials, supplies, goods or services required
• Identifies the specific funds (account codes) that will be used to pay for the order
• If known, identifies recommended or potential vendors, or leaves vendor selection up
to Purchasing
• Is approved by appropriate City representatives to grant budget authority to make the
purchase
• Upon approval, allocates or pre-encumbers funds to support the purchase.
All purchase requisitions will be entered into the financial system by the purchase requestor. The
requestor will be responsible for entering and validating the accuracy of the following:
1) Item/services description
2) Quantity
3) Price, or if price is not known, budgeted or estimated amount*
4) Commodity Code
5) Account code
6) Vendor (if known)
7) List all other required information
8) Attached Supporting Documents (attach all applicable):
a. Quotes/Proposals
b. Quote Summaries/Comparisons
c. Agreement (Standard Agreement, On-Call Agreement, Cooperative
Agreement)
d. JOC Task Order
e. RFP/RFB package
f. Sole Source Approvals
g. Council Action Report for Council approval
Purchase Requisition Process
Departments must submit requisitions in the ERP system. Purchase Request approval levels are
determined by which tier a specific purchase falls into, which is determined by the purchase type
and value. See Exhibit 202-A for purchase tier thresholds.
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Purchase Requisition Approvals & Solicitation Requirements
Tier Solicitation
Required
Level 1
Approver
Level 2
Approver
Level 3
Approver
Level 4
Approver
Purchasing
Involvement
1 None Fiscal Officer
None None None None
2 Informal Quotes* Fiscal Officer
Department
Head
None None Assist with Quotes
when requested
3 Formal Bidding* Fiscal Officer Department
Head
None None Assist with
RFP/RFB package
when requested
4 Formal Bidding* Fiscal Officer Department
Head
Budget
Manager
City Manager Assist with
RFP/RFB package
when requested
5 Formal Bidding* Fiscal
Officer**
None None None Assist with
RFP/RFB package
when requested
* Note: Quotes and bidding processes are not required for purchases made pursuant to Sections X of this Manual.
** All other approvals will be applied in the external Council Agenda Report process.
Purchase Orders
A purchase order is a document used to encumber funds and formalize a purchase transaction with a
vendor. It sets forth the vendor’s obligations as well as the City’s responsibilities and requirements.
Purchase Orders allow the City to clearly and explicitly communicate their intentions to vendors.
Purchase orders may include:
1) Price
2) Description of the requested item(s) or services
3) Delivery terms and transportation mode
4) Terms and conditions, and all other agreements pertinent to the purchase and its
execution by the vendor
5) Attached Supporting Documents
a. Incorporated Agreements (City Agreements, Cooperative Agreements)
b. Incorporated Quotes/Proposals
c. Council Action Report (if Council approval is required for award of a
contract/purchase order)
A vendor’s acceptance of a Purchase Order constitutes a contract. Purchase Orders shall be issued by
the Purchasing Division after all required procedures for selection are met.
There are three types of Purchase Orders:
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1) Regular Purchase Order - a nonrecurring order, written to a specific vendor for a definite
quantity of identified item(s). It is the most appropriate method used for purchase of supplies
and services.
2) Blanket Purchase Order – a Purchase order which authorizes repetitive purchases of goods and
services from a specific vendor up to a maximum, not-to-exceed dollar amount. It is valid from
date of issuance until the end of a fiscal year or specific date (unless funds are depleted sooner).
3) Contract Purchase Order – a Purchase order with an underlying Agreement that is set up for
encumbrance purposes only. This is used when all work descriptions, costs and terms are
incorporated in a City Agreement and the Contract PO is not distributed to the contractor.
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Purchase Order Process
Upon approval of a PR and after any competitive bidding is completed, the Purchasing Division will
create a Purchase Order. Purchase Order approval levels are determined by which tier a specific
purchase falls into, which is determined by the purchase type and value. See Exhibit 2 02-A for
purchase tier thresholds.
Purchase Order Approvals
Tier Level 1 Approver Level 2 Approver Level 3 Approver Purchasing Involvement
1 Purchasing Assistant
None None Create PO and issue
2 Purchasing Assistant
Purchasing Analyst None Assist with obtaining quotes
when requested; Review quote
summary; Create PO and issue
3 Purchasing Assistant
City Attorney (for
contract review only)
Purchasing Analyst None Coordinate RFP/RFB process;
Coordinate contract routing
and execution; Create PO and
issue
4 Purchasing Assistant
City Attorney (for
contract review only)
City Manager Purchasing Analyst Coordinate RFP/RFB process;
Coordinate contract routing
and execution; Create PO and
issue
5 Purchasing Assistant
City Attorney (for
contract review only)
City Manager* Purchasing Analyst Coordinate RFP/RFB process;
Coordinate contract routing
and execution; Create PO and
issue
* City Manager approval is only required if the contract/PO award was delegated by Council. If a Council Action Report
approving the contract/PO is attached, City Manager approval is not required
PURCHASE CARD/CITY CREDIT CARD PURCHASES
Credit Card purchases are discussed in Section 275 of this manual.
EMERGENCY PURCHASES
Emergency Purchases are discussed in Section 220 of this manual.
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Purchasing Thresholds Exhibit 202-A
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Purchasing Thresholds Exhibit 202-A
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Section 203
For purchases exceeding the City’s thresholds listed in Exhibit 202-A which do not fall within the
exceptions listed in Section 220 of this Manual, City staff must engage in competitive bidding in
some form, as required by the Municipal Code. Departments should work with the Purchasing
Division for competitive bidding processes.
TYPES OF SOLICITATIONS
Requests for Bids (RFB)
An RFB is a request to vendors to submit an offer or quote for specific, defined goods or products.
An RFB should be used when seeking a fixed price for goods with known specifications (e.g. Dell
XPS 13 laptops). RFBs are used for Construction of Public Project and when setting up a Job Order
Contract (discussed in Section 250 of this Manual). RFBs must be posted on the City’s designated
solicitation site.
Requests for Proposals (RFP)
An RFP is a request to vendors to submit a proposal for goods or services for which the exact
specifications or methodology of providing the desired goods or services is not defined. An RFP is
generally used for more complex goods or services purchases. RFPs allow for consideration of factors
other than price, including the qualifications of the vendor and the vendor’s ability to perform. RFPs
must be posted on the City’s designated solicitation site.
Requests for Qualifications (RFQ)
An RFQ is a request for a statement of qualifications for a certain class of vendors or consultants.
RFQs are used to develop On-call or Master Agreements. RFQs must be posted on the City’s
designated solicitation site.
Informal Quotes/Quick Quotes
When formal bidding is not required by the City’s purchasing policy (see Section 202 of this Manual),
staff may seek informal quotes either by posting a Quick Quote request on the City’s online solicitation
program or by seeking quotes by verbal or written request. An informal or quick quote is a simple
request for pricing on simple, low-cost goods or services. If quotes are sought by verbal or written
request, staff must create a quote summary to record the quotations received.
BIDDING PROCESS
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BIDDING CRITERIA
RFB RFPs RFQ Quick Quotes
Formal Solicitation Yes Yes Yes No
Goal Lowest Price Lowest Responsible
Bidder
Most Qualified Bidder Lowest Price
Public Opening
Requirements
Opened publicly and
read aloud
Opened publicly and
pricing read aloud
Not opened publicly -
List of vendors who
submit Qualifications
made publicly
available
Not opened publicly
Response Evaluated By Department with
Purchasing assistance
Department project
team
Formal Evaluation
Committee with
numerous
participants
Department with
Purchasing
assistance
Specific Evaluation
Process
Determine whether
Bid is responsive,
then select lowest
responsive Bid. No
scoring of
specification
response is involved.
Responses reviewed
to determine
responsibility of
proposals.
Responsible
proposals are
reviewed for factors
listed in Section
3.24.210 of the
Municipal Code
Statement of
qualifications
evaluated and a score
assigned. Some
specification
responses can be
pass/fail only with no
associated score.
Determine whether
Quote is responsive,
then select lowest
responsive Quote.
No scoring of
specification
response is involved.
Cost Evaluation Process Costs for responsive
bids are compared to
each other to identify
lowest cost
Cost for responsible
bids are compared to
each other to identify
lowest cost
If applicable, costs of
labor or services are
scored
Costs for responsive
quotes are
compared to each
other to identify
lowest cost
Negotiation Allowed
after Selection
No, unless all bidders
are asked for a Best
and Final Offer
(BAFO)
Yes Yes No, unless all
bidders are asked
for a Best and Final
Offer (BAFO)
Award Basis Lowest responsible
bidder wins
Lowest responsible
proposal wins
Evaluation Committee
Recommendation
Lowest responsive
quote wins
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BIDDING PROCESSES
RFB Process
The following process shall be employed when releasing an RFB:
RFB Package
The City’s template “RFB Package” must be used to create the RFB document provided to prospective
vendors (See Section 250 of this Manual). When posting the RFB, the following should also be
included:
1) A precise description of the desired goods;
2) The time and place of public opening of sealed Bids;
3) The location and deadline for submission of Bids;
4) The deadline for submission of questions (if applicable).
RFB Submission and Opening
All RFB submissions (bids) must be sealed (whether in a sealed, unopened envelope for paper bids or
with electronic encryption for electronic bids) and must be opened publicly at a designated location,
date and time.
Bids or proposals which are received after the date and time specified or in a different format than that
requested in the solicitation may not be considered.
RFB Evaluation/Bid Tabulation
Departments, in cooperation with Purchasing, must determine if the submitted bids are responsive
(i.e.: did the bid provide quotes for the specified goods, as requested). Then, the lowest responsive
bid must be selected for award.
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RFB Award
Bidders should be notified when a bid has been selected for award and that award has been approved
(see procedure for approval of contracts/Purchase Orders in Section 202 of this Manual). If the City
is unable to agree to contract terms with the selected vendor after a good faith effort, the award may
be given to the next lowest, responsive bid.
Non-Construction RFP Process
The following process shall be employed when releasing an RFP:
Non-Construction RFP Package
The City’s template “Regular RFP Package” must be used to create the RFP document provided to
prospective vendors (See Section X of this Manual). When posting the RFP, the following should
also be included:
1) A general description of the desired goods or services to be purchased;
2) The desired qualifications of proposers;
3) The information or documentation required for submission of proposals;
4) The date, time and location of public opening of sealed Proposals;
5) The location and deadline for submission of Proposals;
6) The deadline for submission of questions (if applicable);
7) The date, time and location of the pre-bid conference (if applicable).
Non-Construction RFP Submission and Opening
All RFP submissions (proposals) must be sealed (whether in a sealed, unopened envelope for paper
bids or with electronic encryption for electronic bids) and must be opened publicly at a designated
location, date and time.
Proposals which are received after the date and time specified or in a different format than that
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requested in the solicitation may not be considered.
Non-Construction RFP Evaluation/Bid Tabulation
The department in cooperation with Purchasing will first determine whether proposals are responsive
to the RFP. Then, a designated evaluation team (subject matter experts, department stakeholders) will
review responsive proposals using the criteria listed in Section 3.24.210 of the Municipal Code. The
lowest responsible proposal will then be recommended for award.
For professional services related to project management, construction management, design,
engineering, surveying, mapping, landscape architecture, or architectural related services are to be
evaluated based on demonstrated competence and qualifications for the type of professional services
desired. As such, price shall not be used as a criterion in the evaluation and ranking/selection of the
most highly qualified firm.
Non-Construction RFP Award
Proposers should be notified when a proposal has been selected for award and that award has been
approved (see procedure for approval of contracts/Purchase Orders in Section 202 of this Manual). If
the City is unable to agree to contract terms with the selected vendor after a good faith effort, the award
may be given to the next highest scored, responsive bid.
Construction/Public Project RFB
The following process should be employed when releasing an RFP related to construction or public
projects:
Public Project RFB Package
The City’s template “Public Project RFB Package” must be used to create the RFB document provided
to prospective bidders (See Section X of this Manual). When posting the RFB, the following should
also be included:
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1) A general description of the desired work, goods, or services to be purchased;
2) The desired qualifications of proposers, including licensing requirements;
3) The information or documentation required for submission of proposals, including bid bonds
requirements;
4) Information regarding applicable prevailing wage laws;
5) The date, time and location of public opening of sealed Proposals;
6) The location and deadline for submission of Proposals;
7) The deadline for submission of questions (if applicable);
8) The date, time and location of the pre-bid conference (if applicable).
Public Project RFB Submission and Opening
All RFB submissions (bids) must be sealed (whether in a sealed, unopened envelope for paper bids or
with electronic encryption for electronic bids) and must be opened publicly at a designated location,
date and time.
Bidders which are received after the date and time specified or in a different format than that requested
in the solicitation may not be considered.
Public Project RFB Evaluation/Bid Tabulation
The department will first determine whether proposals are responsive to the RFB. All responsive bids
will be tabulate and bid pricing compared. The lowest cost responsive bid will then be recommended
for award.
Public Project RFB Award
Bidders should be notified when a bid is recommended for award and that award has been approved
(see procedure for approval of contracts/Purchase Orders in Section 202 of this Manual).
RFQ Process
The following process shall be employed when releasing an RFQ for On-Call or Master Agreements:
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RFQ Package
The City’s template “RFQ Package” must be used to create the RFQ document provided to prospective
vendors (See Section 250 of this Manual). When posting the RFQ, the following should also be
included:
1) A general description of the type of services to be included in the On-Call Contract or Master
Agreement;
2) The desired qualifications of proposers;
3) The information or documentation required for submission of qualifications;
4) The date, time and location of public opening of sealed Qualifications;
5) The location and deadline for submission of Qualifications;
6) The deadline for submission of questions (if applicable).
RFQ Submission and Opening
RFQ submissions (qualifications) do not need to be before opening. City Staff shall make the list of
vendors who submit Qualifications in response to an RFQ available to the public upon request.
Qualifications which are received after the date and time specified or in a different format than that
requested in the solicitation may not be considered.
RFQ Evaluation
The department will score the Qualifications submitted in response to the RFQ. The vendor(s) deemed
most qualified will then be recommended for award.
RFP Award
Vendors who submit Qualifications should be notified when an award has been approved (see
procedure for approval of contracts/Purchase Orders in Section 202 of this Manual). Resulting On -
Call Contracts and Master Agreements must be re-bid every 5 years.
Quick Quote (Informal Quote) Process
Tier 2 purchases may be made utilizing an informal quotation process. Staff should seek at least three
quotes either in writing, by phone or utilizing the City’s electronic solicitation system. Staff must then
select the lowest responsive quote.
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204-1
Section 204
LOW COST PURCHASING
Tier 1 purchases do not require a competitive bidding process (see Section X for amount thresholds
for Tier 1 purchases). However, City staff should seek cost comparisons whenever practical.
SOLE SOURCE PURCHASING
General Rules
Generally, it is the policy of the City to solicit quotations or bids for purchases of commodities or
services for specified dollar amounts and to select vendors on a competitive basis. However, pursuant
to San Luis Obispo Municipal Code Chapter 3.24.060 (C), certain acquisitions in which the products
or services may only be obtained from a single source may be purchased without engaging in bidding
procedures.
A “sole source” purchase may be entered into without a competitive process because only one known
source for the desired goods or services exists, only a single provider can fulfill the requiremen ts to
meet the City’s needs, or the purchase constitutes an upgrade to an existing system adopted by the
City. In such circumstances, competition is not feasible and, therefore, the competitive process is
waived.
Some examples of legitimate sole source purchases include the following:
Purchases in which only one known source exists for the goods or services as determined by
documented research
Purchases in which there is no reasonable alternative source that meets the City’s needs
Purchases in which only one source meets the City’s business needs (e.g., compatibility with
existing systems, unique features that serve the desired goals of the City, etc.).
Purchases of proprietary items which only the manufacturer, owner, or designated re-seller is
permitted sell (this includes purchases in which purchasing from a non-designated seller
would result in nullification of manufacturer warranties)
Upgrades to existing systems where purchasing a different solution or product would result in
significant additional costs (e.g., data conversion, re-training of staff, new system
implementation costs)
Purchases of services from a contractor with specific and unique knowledge of existing City
systems, procedures or historical data that is critical to the project or city goals where use of
another contractor would result in significant costs or project delays due to lack of such
knowledge.
Some examples of non-legitimate sole source purchases include the following:
Purchases of proprietary goods or services that may be sold by more than one source (i.e.,
multiple resellers may sell one proprietary piece of software)
Brand name preferences
o Exception: If a specific line of products was previously chosen through a proper
process and has been adopted citywide (e.g.: Dell computer products)
Preferred vendors (i.e., vendors with whom the purchaser has a prior relationship)
NO-BID PURCHASING
Packet Page 187
Item 14
204-2
Procedure
Sole Source purchases must be justified in sufficient detail to explain the basis for suspending the
usual competitive procurement process and approved by the approving authority before such a
purchase is made. The City’s Sole Source Justification form (located in the Purchasing SharePoint
page) must be submitted to and approved by the Purchasing Analyst prior to any sole source purchase.
Approved Sole Source Justifications should be attached to Purchase Orders when submitted for a sole
source purchase.
Once approved, a sole source is effective for one-year (so, multiple purchases may be made under
one sole source approval if a department makes multiple purchases of the same products or services
throughout the year). The Purchasing Analyst shall maintain copies of approved sole sources.
EMERGENCY PURCHASING
General Rules
Generally, it is the policy of the City to solicit quotations or bids for purchases of commodities or
services for specified dollar amounts and to select vendors on a competitive basis. However, pursuant
to San Luis Obispo Municipal Code Chapter 3.24.060 (B), purchases that address an immediate and
serious need for equipment, supplies or services may be purchased without engaging in bidding
procedures, if:
1) The City’s need for the equipment, goods or services cannot be met through the time
constraints of the normal purchasing procedures; and
2) The lack of the equipment, goods or services would seriously threaten the functioning of City
government, the preservation of property, or the health or safety of any person.
City staff must not use the emergency purchase process to circumvent general purchasing policy or
vendor licensing requirements. City staff should seek quotes and determine reasonableness of pricing
when making an emergency purchase whenever possible. Contracts for frequent as -needed
emergency services should be established with competitive bidding procedures.
Procedure
Emergency purchases must be justified in sufficient detail to explain the basis for suspending the
usual competitive procurement process. Whenever possible, City staff in need of an emergency
purchase should receive prior approval from the Purchasin g Division by submitting the City’s
Emergency Purchase Justification Form (located in the Purchasing SharePoint page).
If prior approval is not feasible, City staff should submit the Emergency Purchase Justification Form
to the Purchasing Analyst as soon as possible and at least within 24 hours after the purchase has been
made.
Unless a City credit card is used for the purchase, City staff must enter a Purchasing Requisition for
the emergency purchase as soon as possible and should attach the Emergency Purchase Justification
Form to the requisition.
Packet Page 188
Item 14
204-3
COOPERATIVE AGREEMENT PURCHASING
City staff may use established cooperative agreements for purchases without a competitive bidding
process, if those cooperative agreements were competitively bid. City staff is responsible for
researching cooperative agreements to insure the bidding process complies with City competitive
bidding rules.
City staff should research the pricing for the goods or services being sought and compare the pricing
set forth in the cooperative agreement is reasonable. If the pricing set forth in a cooperative agreement
is not reasonable, City staff should initiate a competitive bidding process rather than leveraging the
cooperative agreement.
Local Dealers
If a local dealer within City limits can provide the same brand, model and configuration of any item
in a cooperative purchase agreement at or below the cooperative agreement vendor’s cost with the
same terms and conditions, City staff may use the local dealer without initiating a separate
competitive bidding process.
Packet Page 189
Item 14
215-1
561
Section 215
BUSINESS LICENSES
The City requires most entities doing business within or transacting with the City to obtain a business
license, pursuant to Chapter 5.01 of the Municipal Code. Therefore, for most purchases, City staff
must notify the vendor of the requirement and/or ensure that the vendor has a business license before
making the purchase. No purchases may be made from any vendor that does not have a valid business
license, unless specifically exempted from that requirement, as specified below.
Businesses that have a place of business within City limits must have a business license. City staff
may not transact with such businesses who have failed to maintain a business license.
Whenever possible, City staff should direct purchases to vendors who already have a valid business
license. A current listing of businesses who have valid business licenses is located in the Purchasing
SharePoint page.
EXCEPTIONS
The following types of vendors are exempt from the business license requirement:
• Business that are owned and operated solely by minors under the age of 18;
• Charitable, religious and nonprofit organizations;
• Any business for which requiring a business license would violated Federal or State laws or
contractual agreements;
• Out-of-state businesses (exempted by the Finance Director, pursuant to the adjustment powers
set forth in Section 5.01.501);
• Businesses which are not located in the City and for which the only transaction or business with
the City is an online purchase initiated by the City (exempted by the Finance Director, pursuant
to the adjustment powers set forth in Section 5.01.501).
POSSIBLE EXEMPTIONS (CASE-BY-CASE DETERMINATION)
Businesses who do not have a place of business within the City and do limited, low -cost (less than
$5,000) and/or one-time transactions with the City may not be subject to the business license
requirement. This is determined on a case-by-case basis by the Purchasing Analyst, as the Finance
Director’s designee, after a determination of whether the business has a sufficient nexus with the City.
City staff should contact Purchasing prior to making a purchase if there is any uncertainty as to
whether a business license is required.
BUSINESS LICENSE REQUIREMENT
Packet Page 190
Item 14
Section 295
In accordance with the policy framework set forth in Chapter 3.24 of the municipal code, City
purchases and contracts (including those for rentals and leases, but excluding those for real
property) will be made pursuant to these guidelines. Applicable competitive bidding categories,
authorization limits or contract award procedures will be based on unit cost, total purchase cost
for consolidated bid items or fiscal year aggregates in the case of blanket purchase orders or
similar ongoing purchasing arrangements. Staging of purchases in order to avoid these
competitive bidding procedures or authorization limits is prohibited.
Purchases and contracts for supplies, equipment, operating or maintenance services will be made
pursuant to the following guidelines (see Tier Structure in Section 202 of this Manual and Approval
Dollar Thresholds in Exhibit 202-A of this Manual):
A. Over-the-Counter. Purchase Requisition with cumulative costs which fall into the Tier 1
approval structure may be authorized by the Fiscal Officer. Purchase Orders for these
purchases may be authorized by the Purchasing Assistant. Although no specific solicitation
requirements are established for this level of purchase, competitive bidding should be used
whenever practical and City staff should ensure that pricing is reasonable.
B. Open Market. Purchase Requisitions with cumulative costs which fall into the Tier 2
approval structure must be approved by the Fiscal Officer and Department Head. Purchase
Orders for these purchases must be approved by the Purchasing Assistant and Purchasing
Analyst.
C. Formal Bids or Proposals. Purchases which fall into the Tier 3, Tier 4 or Tier 5 approval
structure will be made pursuant to the formal bidding requirements established in Chapter 3.24
(Article III) of the municipal code. Authority to approve specifications, invite bids or request
proposals and award contracts will be as follows:
1. Purchase Requisitions with cumulative costs which fall within the Tier 3 approval structure
must be approved by the Fiscal Officer and Department Head. Purchase Orders for these
purchases must be approved by the Purchasing Assistant and Purchasing Analyst.
2. Purchase Requisitions with cumulative costs which fall within the Tier 4 approval structure
must be approved by the Fiscal Officer, the Department Head, the Budget Manager and the
City Manager. Purchase Orders for these purchases must be approved by the Purchasing
Assistant, the Purchasing Analyst and the City Manager. Th e City Attorney will also
review specified Purchase Orders by request of the Purchasing Analyst when contract
review is required.
3. Purchases with cumulative costs which fall within the Tier 5 approval structure must have
prior approval of the City Council attached (the Council Agenda Report process will be
used to obtain Council approval). Purchase Requisitions for these purchases must be
approved by the Fiscal Officer. Purchase Orders for these purchases must be approved by
the Purchasing Assistant and the Purchasing Analyst. Purchase Orders for which the
award was delegated to the City Manager by Council will additionally be approved by the
City Manager. The City Attorney will also review specified Purchase Orders by request
of the Purchasing Analyst when contract review is required.
PURCHASING GUIDELINES
295-1 Packet Page 191
Item 14
PUBLIC PROJECTS
Contracts for public projects are governed by the Public Contract Code including the Uniform
Public Construction Cost Accounting Act (Section 22000), which allows alternative bidding
procedures and job order contracting (Council Ord. 1435, 2003).
Job Order Contracts. Under the Job Order Contact provisions of Chapter 3.24.145 of the
municipal code for maintenance-related construction projects, individual Task Orders may be
approved as follows:
1. Purchase Requisitions for Job Order Contract Task Orders under $45,000 must be approved
by the City Engineer. Purchase Orders for these Task Orders must be approved by the
Purchasing Assistant and Purchasing Analyst.
2. Purchase Requisitions for Job Order Contract Task Orders between $45,000 and $174,999
must be approved by the City Engineer and the Budget Manager. Purchase Orders for these
Task Orders must be approved by the Purchasing Assistant.
3. Purchase Requisitions for Job Order Contract Task Orders with a cost of $175,000 or more
must be approved by the City Engineer, the Budget Manager and the City Manager if the
purchase is within the annual limit. Purchase Orders for these Task Orders must be
approved by the Purchasing Assistant and Purchasing Analyst.
4. If the Task Order cost is $175,00 or more and in excess of the annual limit must have prior
approval of the City Council attached (the Council Agenda Report process will be used to
obtain Council approval). Purchase Requisitions for these purchases must be approved by the
City Engineer. Purchase Orders for these purchases must be approved by the Purchasing
Assistant and the Purchasing Analyst.
Adopted by the Council on September 4, 2007, Resolution No. 9926, and amended by Council on May 1, 2018, Resolution No. X.
295-2 Packet Page 192
Item 14
RESOLUTION NO. 10621 (2015 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, UPDATING PURCHASING GUIDELINES
WHEREAS, in the course of conducting City operations it is necessary to purchase a
broad range of goods and services; and
WHEREAS, the Council has adopted purchasing policies and procedures set forth in
Chapter 3.24 of the Municipal Code that require the Council to specify by resolution the dollar
amount of purchases and contracts requiring the use of either open market or formal bidding
procedures, and the level of authority required to authorize invitations for bids (requests for
proposals), award contracts or approve Job Order Contract Task Orders; and
WHEREAS, the Council adopted Resolution No. 9444 (2003 Series) and Ordinance No.
1435 (2003 Series) electing to become subject to the Public Contract Code and Uniform Public
Construction Cost Accounting Act, which allows alternative bidding procedures and job order
contracting; and
WHEREAS, adopted budget policies in the Productivity section call for analyzing
system and procedures to identify and remove unnecessary review requirements; and
WHEREAS, on December 16, 2014 Council amended the Productivity section of the
City budget policies to include "Maintaining City purchasing policies and procedures that are as
efficient and effective as possible "; and
WHEREAS, the subject changes to the Purchasing Guidelines will streamline the
purchasing process for public projects and consultant services — while maintaining appropriate
checks and balances — thereby making delivery of services to the community more expedient and
efficient; and
WHEREAS, the City analyzed several benchmark cities' purchasing procedures, and the
subject changes are consistent and keep pace with the current market.
NOW, THEREFORE, BE IT RESOLVED by the San Luis Obispo City Council that:
1. Resolution No. 9444 (2003) is hereby rescinded and the updated purchasing guidelines
set forth in Exhibit A are hereby adopted.
2. The updated Construction Change Order policy set forth in Exhibit B is hereby adopted.
R 10621
Packet Page 193
Item 14
Resolution No. 10621 (2015 Series)
Page 2
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 2" d day of June 2015.
a o Jan Marx
ATTEST:
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 16-1 " - day of
thony J.
City Clerk
Packet Page 194
Item 14
Resolution No. 10621 (2015 Series)
Page 3
Section 295
Exhibit A
In accordance with the policy framework set forth in Chapter 3.24 of the municipal code, City
purchases and contracts (including those for rentals and leases, but excluding those for real
property) will be made pursuant to these guidelines. Applicable competitive bidding categories,
authorization limits or contract award procedures will be based on unit cost, total purchase cost
for consolidated bid items or fiscal year aggregates in the case of blanket purchase orders or
similar ongoing purchasing arrangements. Staging of purchases in order to avoid these
competitive bidding procedures or authorization limits is prohibited.
GENERAL PURCHASES
Purchases and contracts for supplies, equipment, operating or maintenance services will be made
pursuant to the following guidelines:
A. Over - the - Counter. Purchases with cumulative costs of less than $7,500 may be authorized
by the Department Head. Although no specific purchasing requirements are established for
this level of purchase, competitive bidding should be used whenever practical.
B. Open Market. Purchases with cumulative costs between $7,500 and $25,000 may be
authorized by the Director of Finance & Information Technology (or designee) pursuant to
the open market bidding procedures established in Chapter 3.24 (Article II) of the municipal
code. A bid summary shall be submitted to the Finance Department.
C. Formal Bids or Proposals. Purchases with cumulative costs in excess of $25,000 will be
made pursuant to the formal bidding requirements established in Chapter 3.24 (Article III) of
the municipal code. Authority to approve specifications, invite bids or request proposals and
award contracts will be as follows:
1. For purchases with an approved budget and a cumulative cost estimate of $100,000 or
less, the Purchasing Authority (City Manager /Designee) is authorized to invite bids or
request proposals, approve specifications and award the contract.
2. For purchases with cumulative costs in excess of $100,000, Council approval of the
specifications and authorization to invite bids or request proposals is required. The
Council may authorize the Purchasing Authority to award the contract if the selected bid
or proposal is less than or equal to the Council- approved cost estimate and there are no
substantive changes to the specifications. Otherwise, Council award of the contract is
required.
PUBLIC PROJECTS
Contracts for public projects are governed by the Public Contract Code including the
Uniform Public Construction Cost Accounting Act (Section 22000), which allows alternative
bidding procedures and job order contracting (Council Ord. 1435, 2003).
A. Over - the - Counter. Public projects with cumulative costs of less than $7,500 may be
authorized by the Department Head. Although no specific purchasing requirements are
established for this level of purchase, competitive bidding should be used whenever practical.
295 -1 Packet Page 195
Item 14
Resolution No. 10621 (2015 Series)
Page 4 Exhibit A
Purchasing Guidelines
B. Open Market. Public projects with cumulative costs of $45,000 or less may be authorized
by the Director of Finance & Information Technology ( or designee) pursuant to the open
market bidding procedures established in Chapter 3.24 (Article 11) of the municipal code. A
bid summary shall be submitted to the Finance Department.
C. Informal Bidding. .Public projects with cumulative costs of $100,000 or less may be let to
contract by the Purchasing Authority pursuant to informal bidding procedures as set forth in
the Public Contract Code and Chapter 3.24.150.132 of the municipal code.
D. Formal Bids or Proposals. Public projects with cumulative costs of more than $100,000
shall be let to contract by the Council pursuant to formal bidding procedure as set forth in the
Public Contract Code and Chapter 3.24.150.B3 of the municipal code.
Job Order Contracts. Under the Job Order Contact provisions of Chapter 3.24.145 of the
municipal code for maintenance- related construction projects, individual Task Orders with
cumulative costs up to $45,000 may be approved by the City Engineer. Individual Task Orders
with cumulative costs in excess of $45,000 require approval by the Purchasing Authority.
CONSULTANT SERVICES
Contracts for consultant services will be awarded pursuant to the following guidelines.
A. Contracts for consultant services estimated to cost less than $7,500 cumulatively may be
awarded by the Department Head. Although no specific purchasing requirements are
established for this level of contract, proposals should be solicited whenever practical.
B. Contracts for consulting services estimated to cost between $7,500 and $50,000 cumulatively
may be awarded by the Purchasing Authority. Proposals from at least three consultants shall
be solicited and a summary submitted.
C. Contracts for consultant services estimated to cost more than $50,000 cumulatively will
generally be awarded pursuant to the following guidelines; however, it is recognized that the
City's need for consultant services will vary from situation to situation, and accordingly,
flexibility will be provided in determining the appropriate evaluation and selection process to
be used in each specific circumstance.
The Council should generally approve request for proposal (RFP) documents before they
are issued. The Council may authorize the Purchasing Authority to award the contract if
it is less than or equal to the Council- approved cost estimate and there are no substantive
changes to the approved workscope. Otherwise, Council award of the contract is
required.
2. In the event that the timely evaluation and selection of a consultant precludes Council
approval of the RFP before it is issued, the RFP may be approved and distributed by the
Purchasing Authority; however, award of the contract will be made by the Council.
3. Cost will not be the sole criterion in selecting the successful bidder. Consultant proposals
will be evaluated based on a combination of factors that result in the best value to the
City, including but not limited to:
295 -2 Packet Page 196
Item 14
Resolution No. 10621 (2015 Series)
Page 5
Purchasing Guidelines
Exhibit A
a. Understanding of the work required by the City
b. Quality and responsiveness of the proposal
c. Demonstrated competence and professional qualifications necessary for satisfactory
performance of the work required by the City
d. Recent experience in successfully performing similar services
e. Proposed methodology for completing the work
f. References
g. Background and related experience of the specific individuals to be assigned to the
project
h. Proposed compensation
4. 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, workscope and compensation to be detennined
based on direct negotiations— contract award will be made by the Council.
Adopted by the Council on September 4, 2007, Resolution No. 9926, and untended by Council on June 2, 2015, Resolution
No. 10621.
295 -3 Packet Page 197
Item 14
Resolution No. 10621 (2015 Series)
Page 6 Exhibit B
Section 225
CONSTRUCTION CONTRACT ORDERS
OVERVIEW
When the City awards a construction contract, the need for contract change orders (CCO's) is not
unusual. CCO's are required whenever the scope of work changes from that in the original
contract or an unknown condition of the site requires a change in the scope of work. Usually a
contingency amount is established when the project budget is finalized upon contract award to
accommodate limited CCO's. The purpose of this policy is to establish limits of authority for
approving construction project CCO's.
GOALS
1. Ensure appropriate authority and accountability in the approval of change orders.
2. Minimize the time needed to approve a CCO in order to avoid project delays.
3. Establish a system under which the organizational level at which approval is given is
commensurate with the size of CCO and size of project.
4. Eliminate the potential for approval of a CCO when contingency funds are insufficient.
POLICIES
Conditions for Approval of CCO's by Staff
1. Sufficient contingency funds are budgeted and available in order for the Public Works
Director or City Manager (approved designees) to approve a CCO.
2. The nature of work in the CCO is not significantly different from that in the contract.
3. Authorization limits are based on an individual CCO amount, not the aggregate amount of all
CCO's.
4. Authorization limits apply to CCO's for increases in contract amounts only.
5. When the aggregate amount of CCO's reaches 75% of the contingency, the awarding
authority shall be informed of the status of the project and the sufficiency of funding to
complete the project.
6. Work will not be broken up into multiple CCO's in order to circumvent this policy.
7. All CCO's must be in writing and approved by the appropriate contract parties consistent
with the authorized limits established in this policy.
225 -1 Packet Page 198
Item 14
Resolution No. 10621 (2015 Series)
Page 7 Exhibit B
Construction Change Orders
8. A copy of each approved CCO will be transmitted promptly to the Finance Division.
9. The Purchasing Authority may grant approval of CCO's in excess of $100,000 under the
following circumstances (all three factors must be present):
a. Immediate approval of the CCO is necessary to avoid delay.
b. The CCO is an integral and mandatory component of the project.
c. The costs associated with delay of the project would be excessive.
The Project Manager is responsible for carrying out this policy.
10. The Purchasing Authority is also authorized to approve CCO's in excess of $100,000 related
to Job Order Contract Task Orders.
Authorization Limits
1. Public Works Director/ Designee Not to exceed $45,000
2. Purchasing Authority (City Manager /Designee) Not to exceed $100,000
3. City Council* Greater than contract or $100,000
See circumstances above where the City Manager may approve CCO's in excess gf'$100,000,
Originally Approved by the Council on August 3, 1993; Revised by the Council on April 15, 2003 and June 2,
2015
225 -2 Packet Page 199
Item 14
Purchase TypeLimitApproverSolicitation RequirementSanta BarbaraMaterials and General ServicesUp to $7,500 Department StaffInformal QuotesMaterials and General Services$7,500‐75,000 Department StaffInformal QuotesMaterials and General Services$75,000+ Department StaffFormal RFPProfessional ServicesUp to $10,000 Department HeadNot Required Professional Services$10,000‐35,000 City ManagerNot Required Professional Services$35,000+ CouncilNot Required Public Works All Council (by Charter)Sole Source/Emergency Contracts$35,000+ CouncilPacket Page 200Item 14
Purchase TypeLimitApproverSolicitation RequirementSanta MariaAll Up to $1,000 None NoneGeneral (Supplies, Equipment, non‐Public Works Construction) $1,000‐10,000 Department DesignatesNoneGeneral (Supplies, Equipment, non‐Public Works Construction) $10,001‐74,999 Department HeadInformal QuotesGeneral (Supplies, Equipment, non‐Public Works Construction) $75,000+RFP ‐ City Manager ‐ delegated to Department HeadsAward ‐ Department Formal RFPMaintenance Repair & Services$1,000‐10,000 Department DesignatesNoneMaintenance Repair & Services$10,001‐74,999 Department HeadInformal QuotesMaintenance Repair & Services$75,000+RFP ‐ City Manager ‐ delegated to Department HeadsAward ‐ CouncilFormal RFPProfessional Services$1,000‐$10,000 Department DesignatesNoneProfessional Services$10,001‐74,999 Department DesignatesInformal QuotesProfessional Services$75,000+If not in specified account in the budget:RFP ‐ City Manager ‐ delegated to Department HeadsAward ‐ CouncilFormal RFPPublic Projects Up to $30,000Department staff within appropriations approved by CouncilNonePublic Projects $30,001‐175,000City Engineer, Director of Public Works or City ManagerInformal QuotesPublic Projects $175,000+ Council Formal RFPPacket Page 201Item 14
Purchase TypeLimitApproverSolicitation RequirementSanta CruzGeneral Goods/ServicesUp to $6,500 DepartmentInformal QuotesGeneral Goods/Services$6,501‐35,000 PurchasingInformal QuotesGeneral Goods/Services$35,000+ BoardFormal RFPPublic Projects Up to $4,000 PurchasingInformal QuotesPublic Projects $4,001‐9,999Unclear ‐ Purchasing?Informal QuotesPublic Projects $10,000+ Board approves SpecsIFBProfessional ServicesUp to $35,000 DepartmentInformal QuotesProfessional Services$35,000+BoardBoard also approves RFP if over $70,000+Informal Proposals if under $70,000Formal RFP if over $70,000Sole Source ContractsMore than $35,000 BoardFixed Asset Equipment$5,000 or moreBoard at budget process; Chief Administrative OfficeMontereyAllUnder $4,000 (increase by $500 every 5 years starting 2020) DepartmentNoneGeneral Goods/Services $4,000‐39,999City Manager or designeeInformal QuotesGeneral Goods/Services$40,000+ (increase low limit by $500 and upper limit by $5,000 every five years) CouncilFormal RFPVehicles$5,500‐60,000 (increase low limit by $500 and upper limit by $5,000 every five years) ‐ all other limits follow General Goods City Manager or designeeInformal QuotesPublic Projects $4,000‐100,000 (upper limit increased by $5,000 every 5 years) City Manager or designeeInformal QuotesPublic Projects $100,000+ (upper limit increased by $5,000 every 5 years)er limit increased by $5,000 every 5 years)City Manager or designee up to 10% over budgeted amount; Council if moreFormal BiddingDesign‐Build ProjectsUp to $1 million Council approves RFP/SpecsRFPJob Order ContractsUp to $1 millionCouncil may approve up to 4 Design‐build contractsRFPProfessional Services$4,000‐40,000 (increase by $500 every 5 years) City Manager or designeeInformal QuotesProfessional Services$40,000+ (increase upper limit by $5,000 every 5 years) CouncilFormal RFPPacket Page 202Item 14
Purchase TypeLimitApproverSolicitation RequirementPaso RoblesGeneral Goods/ServicesUp to $5,000 Department ManagerNone (also no PO)General Goods/Services$5,001‐20,000 City Manager or designeeInformal QuotesGeneral Goods/Services$20,000+ CouncilUp to $10,000 ‐ Informal Quotes$10,000+ ‐ Formal BidsPublic Projects Up to $5,000 Department ManagerNonePublic Projects $5,001‐20,000 City Manager of designeeNonePublic Projects $20,000+ Council$25,000‐75,000 0 Informal Bids$75,000+ ‐ Formal BidsProfessional ServicesUp to $20,000 City Manager or designeeInformal ProposalsProfessional Services$20,000+ CouncilFormal RFPPalm SpringsAll Goods/Services Up to $5,000Department Head ‐ some delegate up to $2,500 to Program ManagersInformal QuotesAll Goods/Services $5,000‐35,000 City Manager Informal QuotesAll Goods/Services $35,000+ Council Formal RFQ or RFPPacket Page 203Item 14
Purchase
Type Prior Threshold Prior Approver
Prior
Solicitation
Required
Proposed
Threshold Proposed Approver
Proposed
Solicitation
Required Comparisons
General
Goods Less than $7,500 Department None Less than $10,000
TIER 1
PR - Fiscal Officer
PO - Purchasing Assistant None
* Santa Barbara - Departments and Purchasing unlimited
approval
* Santa Maria - Department designee up to $10k;
Department Head up to $75k; No Council approval
* Santa Cruz - Department and Purchasing up to $35k,
then Board
$7,500-25,000
Quotes - Department
Award - Finance Director Informal Quotes $10,000-39,999
TIER 2
PR - Fiscal Officer; Department Head
PO - Purchasing Assistant; Purchasing Analyst Informal Quotes
$25,000-$100,000
RFP - City Manager
Award - City Manager RFP/RFB $40,000-69,999
TIER 3
PR - Fiscal Officer; Department Head
PO - Purchasing Assistant; Purchasing Analyst RFP/RFB
$100,000+
RFP - Council
Award - City Manager or Council
(depends on delegation)RFP/RFB $70,000-$199,999
TIER 4
PR - Fiscal Officer; DH; Budget Manager; City
Manager
PO - City Attorney (if applicable); City Manager;
Purchasing Analyst RFP/RFB
$200,000+
TIER 5
PR - Council; Fiscal Officer
PO - Council or City Manager; Purchasing
Analyst RFP/RFB
Approvals by Department Heads, City Attorney,
Finance/Budget Manager applied in external CAR process
Packet Page 204
Item 14
Purchase
Type Prior Threshold Prior Approver
Prior
Solicitation
Required
Proposed
Threshold Proposed Approver
Proposed
Solicitation
Required Comparisons
General
Services Less than $7,500 Department None Less than $7,500
TIER 1
PR - Fiscal Officer
PO - Purchasing Assistant None
* Santa Barbara - Departments and Purchasing unlimited
approval
* Santa Maria - Department designee up to $10k;
Department Head up to $75k; RFP - City Manager & Award
Council if Maintenance & Repair $75k+
* Santa Cruz - Department and Purchasing up to $35k,
then Board
$7,500-25,000
Quotes - Department
Award - Finance Director Informal Quotes $7,500-$24,999
TIER 2
PR - Fiscal Officer; Department Head
PO - Purchasing Assistant; Purchasing Analyst Informal Quotes
$25,000-$100,000
RFP - City Manager
Award - City Manager RFP/RFB $25,000-$49,999
TIER 3
PR - Fiscal Officer; Department Head
PO - Purchasing Assistant; Purchasing Analyst RFP/RFB
$100,000+
RFP - Council
Award - City Manager or Council
(depends on delegation)RFP/RFB $50,000-$149,000
TIER 4
PR - Fiscal Officer; DH; Budget Manager; City
Manager
PO - City Attorney (if applicable); City Manager;
Purchasing Analyst RFP/RFB
$150,000+
TIER 5
PR - Council; Fiscal Officer
PO - Council or City Manager; Purchasing
Analyst RFP/RFB
Approvals by Department Heads, City Attorney,
Finance/Budget Manager applied in external CAR process
Packet Page 205
Item 14
Purchase
Type Prior Threshold Prior Approver
Prior
Solicitation
Required
Proposed
Threshold Proposed Approver
Proposed
Solicitation
Required Comparisons
Public
Projects Less than $7,500 Department None Less than $7,500
TIER 1
PR - Fiscal Officer
PO - Purchasing Assistant None
* Santa Barbara - all by Council
* Santa Maria - Departments up to $30k; City Engineer,
Public Works Director or City Manager $30-175k; Council
$100k+
* Santa Cruz - Departments up to $10k; Board approves
Specs for $10k+
NOTE: Public Projects designation was part of the last
update - in line with Public Contracting Code.
$7,500-45,000
Quotes - Department
Award - Finance Director Informal Quotes $7,500-$74,999
TIER 3
PR - Fiscal Officer; Department Head
PO - Purchasing Assistant; Purchasing Analyst RFP/RFB
$45,000-$100,000
RFP - Department
Award - City Manager RFP/RFB $75,000-$149,999
TIER 4
PR - Fiscal Officer; DH; Budget Manager; City
Manager
PO - City Attorney (if applicable); City Manager;
Purchasing Analyst RFP/RFB
$100,000+
RFP - Council
Award - City Manager or Council
(depends on delegation)RFP/RFB $150,000+
TIER 5
PR - Council; Fiscal Officer
PO - Council or City Manager; Purchasing
Analyst RFP/RFB
Approvals by Department Heads, City Attorney,
Finance/Budget Manager applied in external CAR process
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Item 14
Purchase
Type Prior Threshold Prior Approver
Prior
Solicitation
Required
Proposed
Threshold Proposed Approver
Proposed
Solicitation
Required Comparisons
Consulting
Services Less than $7,500 Department None Less than $7,500
TIER 1
PR - Fiscal Officer
PO - Purchasing Assistant None
Professional Services
* Santa Barbara - DH up to $10k; CM up to $35k; Council
$35k+
* Santa Maria - Departments up to $75k; RFP - CM; Award -
Council $75k+
* Santa Cruz - Departments up to $35k; Board award
$35k+; Board approve RFP $70k+
NOTE: Last SLO purchasing update raised consulting
services threshold for CM 100% ($25k-$50k) in line with
general increases in consulting services
$7,500-$50,000
Written Proposals - Department
Award - City Manager Informal Quotes $7,500-14,999
TIER 2
PR - Fiscal Officer; Department Head
PO - Purchasing Assistant; Purchasing Analyst Informal Quotes
$50,000+
RFP - Council
Award - City Manager or Council
(depends on delegation)RFP/RFB $15,000-39,999
TIER 3
PR - Fiscal Officer; Department Head
PO - Purchasing Assistant; Purchasing Analyst RFP/RFB
$40,000-99,999
TIER 4
PR - Fiscal Officer; DH; Budget Manager; City
Manager
PO - City Attorney (if applicable); City Manager;
Purchasing Analyst RFP/RFB
$100,000+
TIER 5
PR - Council; Fiscal Officer
PO - Council or City Manager; Purchasing
Analyst RFP/RFB
Approvals by Department Heads, City Attorney,
Finance/Budget Manager applied in external CAR process
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Item 14
Purchase
Type Prior Threshold Prior Approver
Prior
Solicitation
Required
Proposed
Threshold Proposed Approver
Proposed
Solicitation
Required Comparisons
IT Systems Less than $7,500 Department None Less than $7,500
TIER 1
PR - Fiscal Officer
PO - Purchasing Assistant None
Other cities don't separate, however it is common for
State entities - makes it easier to increase thresholds for
General Goods without fear of large systems purchases
not having oversight
$7,500-25,000
Quotes - Department
Award - Finance Director Informal Quotes $7,500-24,999
TIER 2
PR - Fiscal Officer; Department Head
PO - Purchasing Assistant; Purchasing Analyst Informal Quotes
$25,000-$100,000
RFP - City Manager
Award - City Manager RFP/RFB $25,000-44,999
TIER 3
PR - Fiscal Officer; Department Head
PO - Purchasing Assistant; Purchasing Analyst RFP/RFB
$100,000+
RFP - Council
Award - City Manager or Council
(depends on delegation)RFP/RFB $50,000-99,999
TIER 4
PR - Fiscal Officer; DH; Budget Manager; City
Manager
PO - City Attorney (if applicable); City Manager;
Purchasing Analyst RFP/RFB
$100,000+
TIER 5
PR - Council; Fiscal Officer
PO - Council or City Manager; Purchasing
Analyst RFP/RFB
Approvals by Department Heads, City Attorney,
Finance/Budget Manager applied in external CAR process
Job Order
Contract
Task
Orders Less than $45,000 City Engineer NA Less than $50,000
PR - Fiscal Officer; City Engineer
PO - Purchasing Assistant NA
Not often separated from Public Projects. Threshold
nearly the same as existing. These approval levels are
similar to existing, except that approvals for TOs between
$45,000 and $100,000 rests with the Budget Manager.
* Monterey - always Council approval - up to 4 contracts
up to $1 million each
$45,000-100,000 City Manager NA $50,000-$100,000
PR - Fiscal Officer; City Engineer; Budget
Manager
PO - Purchasing Analyst NA
$100,000+ within
JOC annual limits City Manger NA
$100,000+ within
JOC annual limits
PR - Fiscal Officer; City Engineer; City Manager
PO - Purchasing Analyst NA
$100,000+ over JOC
annual limits Council NA
$100,000+ over
JOC annual limits
PR - Fiscal Officer
PO - Purchasing Analyst NA
Approvals by Department Heads, City Attorney,
Finance/Budget Manager applied in external CAR process
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Item 14
Meeting Date: 5/1/2018
FROM: Michael Codron, Community Development Director
Prepared By: Michael Codron, Community Development Director
Anne Russell, Assistant City Attorney
Rachel Cohen, Associate Planner
SUBJECT: CANNABIS OPERATORS’ PERMIT AND LAND USE REGULATION
ORDINANCE
RECOMMENDATION
The following actions are recommended to establish new Municipal Code provisions that would
become effective if a cannabis revenue measure is placed on the November 2018 General
Election ballot and approved by the voters:
1. Introduce an Ordinance entitled “An Ordinance of the City Council of the City of San Luis
Obispo, California, amending the Municipal Code to establish Zoning (Chapter 17) and
Public Peace, Morals and Welfare (Chapter 9) regulations for commercial cannabis
businesses and personal cultivation, and determining that the amendments are statutorily
exempt from environmental review pursuant to business and professions code section
26055 (H) (CODE-1058-2017).”
a. Creating “Chapter 9.10 - Cannabis Regulations” of the City’s Municipal Code, repealing
the current ban on commercial cannabis business activity and establishing standards to
protect public health and safety regulating personal cannabis cultivation, cannabis
business operators, and permitted cannabis business activities in the City (Attachment A,
Exhibit A); and
b. As recommended by the Planning Commission, with modifications to personal
cultivation limits, creating “Chapter 17.99 – Cannabis” of the City’s Municipal Code
creating land use regulations for cannabis business activities, personal cultivation, and
providing for the creation of overlay zones where the proposed land use regulations
would apply (Attachment A, Exhibit B).
2. Direct staff to return to the City Council with additional implementing measures, including
zoning map amendments for the proposed cannabis overlay zones, criteria for the ranking
of cannabis business operator applications, a fee schedule for applications and annual
licenses, and more information about a cannabis revenue measure.
REPORT-IN-BRIEF
On March 14, 2017, the City Council adopted Ordinance No. 1633 (Attachment B), reaffirming
that all commercial cannabis activity is currently illegal in the City of San Luis Obispo.
Proposition 64 (approved in November 2016) was strongly supported by City voters (15,447
total yes votes or 67.52% of the ballots cast), however, the Council chose to maintain a
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prohibition on all commercial cannabis business activity until a comprehensive program to
regulate commercial cannabis uses and activities could be developed. Council directed staff to
engage with the community and return with recommendations regarding the regulation of
cannabis business activity within the City.
On February 20, 2018, the City Council held a study session and provided direction to staff on
key policy matters relating to proposed ordinances. Subsequently, the Planning Commission
reviewed and recommended approval of proposed land use standards for cannabis uses and
activities to be adopted into the City’s Zoning Code. Staff is forwarding the recommendations of
the Planning Commission with some recommended modifications related to personal cultivation.
The most important recommendations made by the Commission include restricting cannabis
business activity to specific overlay zones, allowing retail storefronts in the Service-Commercial
(CS) zones within those overlay zone areas, restricting retail storefronts to arterial streets within
overlay zones, and only requiring buffers from cannabis businesses that have public access (e.g.
buffers for retail stores, but not for testing labs, manufacturers, cultivators, etc.).
In addition to the recommended land use standards contained in Chapter 17 of the Municipal
Code, the City Council is being asked to consider health and safety standards that would be
located in Chapter 9. Chapter 9.10 of the Municipal Code would be repealed and replaced with
the new regulations. Generally, the rules included in Chapter 17.99 will govern the issuance of
permits for cannabis businesses with conditions of approval that would be enforced through the
Community Development Department’s Code Enforcement Division. Chapter 9.10 includes
public health and safety standards to be enforced primarily by the Police Department and apply
to business operators and to business activities that have been permitted under the processes
established by Chapter 17.99.
Prior to commercial cannabis activities commencing in the City, the Council will also need to
adopt comprehensive regulations by resolution, including a fee schedule to ensure that 100% of
City costs associated with regulating cannabis business activity is recovered through one-time
application fees and annual licensing and renewal fees. On March 20, 2018, the City Council
authorized the issuance of an RFP for a consultant to assist the City with the development of
these regulations, including the application requirements (e.g. the components of a security plan,
cash management plan, etc.), and the criteria by which potential business operators would be
ranked. Finally, it is also recommended that these proposed regulations go into effect only if
voters approve a cannabis revenue measure planned for the November 2018 General Election
ballot. The approval of a revenue measure for placement on the ballot is not part of this report or
recommendation and will be presented to the City Council on a future agenda.
DISCUSSION
Overview of Draft Ordinances
City staff has drafted cannabis ordinances to be codified in two Municipal Code Chapters. The
first would be adopted in San Luis Obispo Municipal Code (SLOMC) Chapter 9 and is focused
on public health and safety standards related to the personal cultivation and use of cannabis and
the conduct of cannabis business operations in the City, which are contemplated to be enforced
primarily by the Police Department. The second would be adopted in SLOMC Chapter 17
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(Zoning Regulations), which would define land use regulations for sites within the City where
cannabis business activity would be allowed. Thus, components of business activities would be
regulated both through Cannabis Business Activity Permits, and land use regulations, which
would be enforced with more detailed regulations to be adopted by Council Resolution, and/or
through a conditional use permit linked to a Cannabis Business Activity Permit. Legal operation
of a cannabis business would require alignment of a permitted business operator and a physical
location zoned for such uses.
Overall, the draft ordinances are intended to protect public health, safety, and welfare – and
support the local cannabis economy – by permitting and regulating a wide range of cannabis
uses, summarized as follows:
1. Allows for access to medical and recreational marijuana in the City, with
storefront and delivery options (at least one storefront to be reserved for a holder
of a medicinal retailer license)
2. Prohibits events and onsite consumption
3. Establishes a two-step process requiring prospective business operators to be
certified and ranked prior to applying for a land use permit
4. Includes requirements for energy and water efficiency, and limits total amount of
cultivation, to ensure consistency with City climate action goals
5. Limits manufacturing uses to non-volatile processes only
6. Limits cultivation to indoors only, and total City-wide amount of cultivation
allowed to 70,000 square feet of total canopy coverage within indoor areas,
cumulatively (includes total canopy of either horizontal or vertical growing
situations)
7. Provides for the creation of overlay zones where cannabis business activity may
be permitted, and buffers within those overlay zones for cannabis retail stores of
300 feet from residential zones, and 1,000 feet from schools, and parks.
8. Requires retail storefronts to be located at least 1,000 ft. apart
Planning Commission Review and Recommendations
On March 25 and 26, 2018, the Planning Commission reviewed the land use related components
of the draft cannabis ordinances. The Commission voted 4-2 (Stevenson and Fowler voting no)
to forward a recommendation to the City Council for approval. The Planning Commission’s
recommendation includes seven key differences from the initial staff recommendation, as
follows.
1. Overlay zones are recommended to be established to define the locations in the City
where cannabis business activities may be allowed. Allowed uses should be controlled by
the zoning and required buffers within those overlay zones.
2. Within overlay zones, sensitive uses like schools and parks should provide 1,000-foot
buffers, and residential zones should provide 300-foot buffers, to retail stores. No other
cannabis business activity should be subject to buffers.
3. Within the overlay zones, retail stores should be allowed in the Service Commercial (CS)
zone, but not in the Community Commercial (CC) or Tourist Commercial (CT) zones.
4. Retail stores should only be approved if they are located on arterial streets.
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5. At least one of the three retail storefronts should be operated by a medicinal license
holder (retailers are allowed to hold both medicinal and adult use licenses).
6. Access to retail stores by any adult under 21 years of age should be prohibited.
7. Personal cultivation should be prohibited outdoors.
Staff has incorporated all of the Planning Commission’s recommendations into the staff
recommendation with the exception of the prohibition on personal outdoor cultivation. However,
staff is proposing some additional limits on personal outdoor cultivation for Council’s
consideration. The Council could accept the Planning Commission’s recommendation on this
component of the regulations, however, Council has previously expressed support for allowing
personal outdoor cultivation and individuals can currently grow up to six plants per residence in
the City, even under the current prohibition regulations in effect since February 2017.
1. Overlay Zones
Overlay zones were drafted and presented to the Planning Commission to reflect areas that are
suitable for cannabis business activities. The overlay zones were chosen based on the zoning of
land within the overlay, distance from sensitive land uses such as schools, residential
neighborhoods, and parks, and the presence of barriers from these sensitive land uses including
major roadways, the railroad tracks, and topographical features. The Planning Commission is
recommending approval of six overlay zone areas (Exhibit C). Cannabis business activities
would only be allowed within the boundaries of an overlay zone area, and the underlying zoning
would determine what types of cannabis activity permits could be approved for a given property.
Approval of the recommended ordinances would establish the requirement for cannabis business
activities to be located within one of the six overlay zone areas, however, a separate action is
needed to rezone the properties shown in Exhibit C. Staff will return in Summer 2018 with
zoning map amendments to implement to proposed overlay zones.
2. Buffers
The Planning Commission recommendation is to only establish buffers from cannabis businesses
with customer access, which is limited to retail storefronts. The Planning Commission is
recommending buffers of 1,000 feet from schools, parks, and playgrounds and 300 feet from
residentially zoned land to retail stores with customer access.
The relationship between buffers and overlay zones is important to understand. The purpose of
overlay zones, which were carefully selected for compatibility with surrounding uses, is to
provide clarity for residents, property owners, and business owners regarding where a cannabis
business can be established. In selecting the overlay zones, staff closely evaluated the buffer
maps and identified areas that were mostly outside of any buffers. Where buffers extend into an
overlay zone area, there is typically another barrier such as a major roadway, the railroad tracks,
topographical changes, or other features that provide the same effect as a buffer.
As a result, buffers are only intended to be evaluated as part of a land use application when there
is an activity within an overlay zone that requires a buffer. For example, the Moylan Terrace
property in the Broad Street Corridor area is zoned R-3 and any retail store with public access
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would need to be located 300 feet away from the closest residence within that zone. However, a
retail store could be located along Broad Street even though it is within 300 feet of re sidential
land on the west side of Broad Street because buffers would not be calculated from residential
land located outside of overlay zones (in this case across Broad Street). The reason for this is that
Broad Street itself acts as a significant physical barrier and provides the functional equivalent of
a buffer based on distance.
The overlay zones have been selected to avoid the need to measure buffers as a regular part of
implementing the new ordinances, however, there are two relatively small areas where
residential land exists within an overlay zone boundary (in the Moylan Terrace area of the Broad
Street Corridor and in the Airport Area at the Hidden Hills Mobile Lodge property). There are no
schools located within the proposed overlay zones.
3. Retail Store Locations
Originally staff recommended that retail stores be located within three zones: Community
Commercial (C-C), Tourist Commercial (C-T), and Retail Commercial (C-R) zones. The
Planning Commission recommended that retail storefronts only be allowed within the C-R and
Service Commercial (C-S) zones. This recommendation is consistent with the zoning that is
included within each of the Overlay Zones described above. Additionally, the Planning
Commission recommends that retail storefronts only be located on arterial roads such as Higuera,
S. Higuera and Broad Street. Overall, this recommendation is supported by the Police
Department because locating retail stores on arterial streets will facilitate patrol and enforcement
of the City’s ordinances and regulations.
4. Medicinal (M) Retail Licenses and Adult Access
During the February 20, 2018 City Council study session, Council discussed whether one of the
retail storefronts should be a medicinal only storefront. The Planning Commission had a similar
discussion and recommended that at least one of the three retail storefronts have a medicinal
license. The business would not necessarily have to be medicinal only and could also hold an
adult use license.
Health and Safety Regulations
Part of the action recommended is to repeal the current prohibition on commercial cannabis
activity contained in SLOMC Chapter 9.10 Marijuana Regulation and replace this section in its
entirety with proposed health and safety regulations to govern commercial cannabis business
activity. Some of the features of the proposed health and safety regulations, which would be
enforced primarily by the Police Department, include personal cultivation regulations, operator
permit application procedures and requirements, permit renewal requirements, suspension or
revocation of permits, inspections and enforcement, transfer of operator permits, and on-site
consumption.
1. Personal Cultivation
Chapter 9.10 contains limitations on personal cultivation. The Planning Commission is
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recommending no outdoor cultivation be allowed in Chapter 17.99. If the Council agrees with
that recommendation, then section 9.10.030 which allows up to 6 plants should be deleted and
replaced with a prohibition of all outdoor cultivation. As drafted, 9.10.030 clarifies that for
outdoor cultivation, there is a six-plant limit per parcel with a private residence, regardless of the
number of residences per parcel, and regardless of the number of residents per private residence.
Chapter 17.99 is not as explicit as to limits on outdoor cultivation where there are multiple
residences on a parcel, such as apartment buildings, accessory dwelling units, duplexes, etc. By
limiting outdoor cultivation to six plants per parcel, it will be easier for the police to enforce the
limit and it will reduce the likelihood that odors associated with outdoor cultivation will
adversely impact adjacent properties or residents. Outdoor cultivation would require continued
compliance with odor nuisance regulations.
The draft proposes a limit of six plants total per parcel with a private residence, (indoors and
outdoors together) except for medicinal patients. For medicinal patients, any plants more than six
must be grown indoors. Commercial outdoor cultivation is prohibited, as is any outdoor
cultivation on a parcel that does not contain a private residence.
2. Two-Step Process – Operator Permit Application Procedures
Staff is proposing a two-step process where qualification and ranking of business operators is
required to occur prior to approval of an application for a land use permit for that business.
The Council recently approved a RFP for consultant services to assist the city in evaluating and
ranking potential cannabis businesses and to assist in drafting regulations. Staff expects that the
criteria for ranking of business operators, and the specific regulations and performance standards
that will apply to cannabis business activities will be ready for review by the Council during Fall
2018.
3. Permit Renewal Requirements
An application for renewal of a Commercial Cannabis Operator Permit will need to be filed at
least sixty (60) calendar days prior to the expiration date of the permit. If the complete
application and fees are timely submitted, but the City does not act to approve or reject the
renewal prior to expiration, the permittee will be able continue to operate under the expired
permit until the City approves or rejects the application for renewal. An application for renewal
of a Commercial Cannabis Operator Permit can be rejected for a number of reasons, such as:
• The application is filed less than sixty (60) days before its expiration.
• The Commercial Cannabis Operator Permit, is revoked at the time of the application or
renewal.
• The applicant conducted unpermitted commercial cannabis activities in the city or
continued to conduct formerly permitted commercial cannabis activities after expiration
of the permit.
• The applicant has received an administrative citation for violating any provision of this
Code relating to its Commercial Cannabis Activity(ies) in the city during the last twelve
months, and the administrative citation has not been resolved in the applicant’s favor by
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date of application for renewal. A pending, unresolved appeal of an administrative
citation shall not result in rejection of an otherwise proper application, but resolution of
an appeal in a manner that upholds the violation against the applicant during the
application review period shall result in the immediate rejection of the application.
• The Commercial Cannabis Business fails to conform to the requirements / conditions of
the Use Permit, Chapter 9.10 or Chapter 17.99 of the Municipal Code.
If a renewal application is rejected, the Commercial Cannabis Operator Permit expires on the
expiration date set forth in the permit, even if an appeal has been filed.
4. Suspension or Revocation of Permits
Staff is recommending that, in addition to any other penalty authorized by law, a Commercial
Cannabis Operator Permit may be suspended or revoked if the City finds, after notice to the
permitee and opportunity to be heard, that the permitee or his or her agents or employees has
violated any condition of the permit imposed pursuant to, or any provision of, this chapter. This
provision is found in Section 9.10.090 and would be enforced by the Police Department.
1. Upon a finding by the city of a first permit violation within any five-year period,
the permit shall be suspended for thirty days.
2. Upon a finding by the city of a second permit violation within any five-year
period, the permit shall be suspended for ninety days.
3. Upon a finding by the city of a third permit violation within any five-year period,
the permit shall be revoked.
These penalties mirror the penalties included in the City’s Tobacco Retailer License ordinance
(SLOMC 8.14.100). These penalties have been proven effective and enforcement is handled by
the Police Department through a variety of methods, including focused operations that
specifically target retailers selling tobacco products to minors. More minor violations of the
standards in Chapter 17 would be handled through the normal administrative citation process by
City code enforcement officers.
5. Inspections and Enforcement
Chapter 9.10 outlines various inspections that a cannabis business would expect to receive from
code enforcement, the police or any other City official or inspector charged with enforcing any
provisions of this Code. These inspections include: unscheduled inspections during business
hours and the ability to obtain samples for any testing necessary to audit compliance with any
standard pursuant to Chapter 9.10.
6. Transfer of Operator Permits
Another issue is whether to prohibit any sale, assignment or transfer of the commercial cannabis
operator permit. The recommendation provided to the City Council and reflected in Municipal
Code Chapter 9.10.120 requires Council approval of the transfer of operator permits to eligible
cannabis business operators, as follows:
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9.10.120. B. The Commercial Cannabis Operator Permit shall terminate
immediately and automatically upon such assignment or transfer unless and until the
City prequalifies the transferee or assignee during the annual prequalification period;
the transferee or assignee submits all required information, pays all applicable fees
and charges, and obtains the prior consent of the City Council.
The biggest issue is ensuring that only qualified commercial cannabis operators can conduct
business in the city. Since staff is recommending, and the Council may adopt, a limit on the
number of cannabis retail storefront permits, these retail permits, in particular, may become very
valuable. The proposed ordinance provision cited above prohibits the assignment or transfer of
cannabis operator permits outright and allows transfer only to a person or entity qualified by the
City to apply for a commercial cannabis operator permit, with prior approval by the City
Council.
City Council approval in this case is recommended because the transfer of a permit is a business
transaction and while the entity acquiring the operator permit will have to be pre-qualified, it
would be problematic for the City to allow these transfers administratively. In these cases, the
City Council would review assignment as part of a public hearing and determine if it is
acceptable because it is possible that there would be pre-qualified operators that are ranked
higher than the entity acquiring the permit. Even though there may be operators that are ranked
higher, and that are waiting for a license to become available, it may not be feasible for the
highly ranked operator to obtain the transfer of the permit for a variety of reasons includ ing
different business models, the cost of the permit, etc. As a result, City Council discretion should
be applied to determine if the transfer is acceptable, or if prohibiting the transfer is in the best
interest of the community because it would potentially allow a more highly ranked operator to
obtain an operator permit and start a new business.
7. On Site Consumption
Chapter 9.10.210 prohibits any person from selling (or giving away) cannabis for on -site
consumption, at any business premises (not just licensed cannabis businesses) and prohibits any
person from consuming or using cannabis on the premises of any commercial cannabis business,
or in any place accessible to the public, visible from a public place, or any place smoking is
prohibited.
State law prohibits a cannabis licensee from selling alcoholic beverages or tobacco products on a
licensed cannabis business premises. Proposed Chapter 9.10 goes a step further and additionally
prohibits the giving away or permitting the consumption of alcohol or tobacco in or on the
premises of a commercial cannabis activity and would prohibit any commercial cannabis activity
at any location where alcohol is sold or served.
Next Steps
The ordinances recommended for approval will establish firm ground with respect to the City’s
rules for commercial cannabis activities. However, before any new business can be established,
additional work will have to be accomplished. The areas of additional work include the
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establishment of criteria for ranking potential cannabis business operators, zoning map
amendments to create the overlay zones, the creation of a fee schedule to ensure cost recovery,
and the placement of a tax measure on the 2018 General Election ballot.
1. Consultant Support RFP (Status Report)
The City issued an RFP for Cannabis Business Regulation and Education Support Services on
March 26, 2018. The proposals are due on April 26th and a contract is expected to be executed in
early June with the successful consultant. One of the critical work efforts that the consultant will
be tasked with accomplishing is the development of criteria against which future cannabis
business operators will be evaluated and ranked. In order to apply for a land use permit, cannabis
business operators must first be evaluated according to criteria adopted by the City Council. The
criteria will be developed by staff and the consultant team and presented to the City Council for
approval. In addition to criteria around the experience and qualifications of a potential cannabis
business operator, the ranking system will be designed to provide extra points for local
businesses, cultivators that use organic growing practices, energy efficiency in business
operations and other criteria to the approval of the City Council.
2. Rezoning Overlay Zone Areas
As previously noted, in order to affect the proposed overlay zones, staff will need to notify
property owners within these areas and perform the appropriate notification prior to additional
public hearing. Postcard notification of properties within 300 feet of any area to be rezoned is
required, unless over 1,000 postcards would be generated, then a display ad in the Tribune can be
used in lieu of postcard notification. It is possible that some fine tuning of the overlay zones
could occur as part of this process. Staff will begin work on the formal rezoning process
immediately and will be able to return to the Council with a recommendation from the Planning
Commission in late summer.
3. Cost Recovery Evaluations and Fee Schedule
A feature of the proposed program to regulate cannabis business activity in the City is 100% cost
recovery. Once the City Council adopts the ordinances necessary to enact a regulatory program,
staff will complete its efforts to determine the scope of resources needed to support the program.
For example, it is expected that one or more police officers, a code enforcement officer, and
additional resources in the Finance Department and City Attorney’s Office would be utilized to
administer and enforce the new rules. The costs associated with these efforts, which include
public information and education efforts, would be recovered from future business operators via
one-time application fees, and annual permit and inspection fees. Staff will return to the City
Council with an assessment of these costs, and a proposed fee schedule to ensure 100% cost
recovery.
4. Enactment Pending Voter Approval of Tax Measure
In addition to the important steps above that are necessary to accomplish prior to the first
cannabis business opening within the City, staff is recommending that the proposed Municipal
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Code changes not go into effect unless and until there is a tax measure approved by the resid ents
of the City. On April 17, 2018, the City Council approved the concept of moving forward with a
cannabis revenue measure on the November 2018 general election ballot. Staff plans to bring an
item to the Council on May 15 for consideration of various tax rates and other questions relating
to the ballot measure.
CONCURRENCES
A steering committee of City staff members including the Community Development Director,
City Attorney, Police Chief, Fire Chief, and Finance Director was convened to guide the process
of developing regulations for consideration by the City Council.
ENVIRONMENTAL REVIEW
SB 94 amends the Business and Professions Code to exempt from CEQA review the adoption of
an ordinance, rule, or regulation by a local jurisdiction requiring discretionary review and
approval of permits and licenses for commercial cannabis activity (until July 1, 2019).
Depending on the nature of the activity for which an application is received, individual project
level environmental review may be required.
FISCAL IMPACT
Ultimately, if the City moves forward with regulations, it should establish fees and licenses that
allow it to recover 100% of the allowable costs associated with regulation. These are the costs
that can be quantified based on the amount of staff time in various departments to administer and
license the cannabis industry. Community Development, Attorney’s Office, Administration,
Police, Fire, Utilities, and Finance will experience costs associated with regulation and staff will
be developing a fee structure based on approved regulations to recover the allowable costs.
The Council may give staff policy direction to pursue additional revenues associated with a tax
on cannabis business activity, but that question will be considered separately from the
regulations. In addition, cities that choose to regulate cannabis business activity rather than
prohibit such activities are eligible for grant funding from the state. There may be additional
indirect costs due to cannabis activities such as public safet y activities or secondary effects not
covered by the fees. These indirect costs may be present regardless of the Council action on
regulations due to passage of Proposition 64 and the actions of neighboring jurisdictions to
approve cannabis business activities.
The issues around taxation and the ability of cannabis business activity to drive the collection of
new General Fund revenues are important considerations for the City’s fiscal health and are part
of its Fiscal Health Response Strategy. Once the City Council has decided how it wants to
proceed with respect to regulations, the City’s Finance Department will take the lead in
evaluating fiscal impacts and recommending a cost recovery and taxation approach.
ALTERNATIVES
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1. Modify the Proposed Ordinances. The City Council is free to make modifications to the
recommendations presented. The Council can make minor modifications “on the fly” during
the meeting. More significant changes should return to the Council following additional staff
analysis.
2. Continue Consideration of Ordinances to a Future Date. The City Council could direct
staff to conduct additional research or outreach on more or more components of the
recommended ordinances. If this alternative is taken, the Council should provide direction to
staff regarding additional information needed to move forward.
3. Direct Staff Not to Move Forward with Changes to Ordinance No. 1633. The City Council
could decide to direct staff to focus on other priorities and not pursue changes to the current
ordinance that prohibits all commercial cannabis business activity at this time. This
alternative is not recommended based on the direction provided by the City Council on
February 20, 2018, that it did want to move forward and regulate the commercial cannabis
industry in San Luis Obispo.
Attachments:
a - Draft Ordinance with Exhibits
b - Ordinance 1633 (2017 Series)
c - Proposed Cannabis Activities Overlay Area Maps
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ORDINANCE NO. _____ (2018 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE TO
ESTABLISH ZONING (CHAPTER 17) AND PUBLIC PEACE, MORALS
AND WELFARE (CHAPTER 9) REGULATIONS FOR COMMERCIAL
CANNABIS BUSINESSES AND PERSONAL CULTIVATION, AND
DETERMINING THAT THE AMENDMENTS ARE STATUTORILY
EXEMPT FROM ENVIRONMENTAL REVIEW PURSUANT TO
BUSINESS AND PROFESSIONS CODE SECTION 26055 (h) (CODE-1058-
2017)
WHEREAS, the voters of the State of California approved the Compassionate Use Act in
1996 to provide a defense to criminal prosecution for the cultivation, possession and use of
marijuana for medical purposes. Subsequently, the Medical Marijuana Program Act (MMPA)
established a voluntary participation, State-authorized medical marijuana identification card and
registry database for verification of qualified patients and their primary caregivers; and
WHEREAS, in 2015, the State enacted the Medical Cannabis Regulation and Safety Act;
and
WHEREAS, on November 8, 2016, California voters approved Proposition 64, the Adult
Use of Marijuana Act, a voter initiative, which legalized, under state law, adult personal
recreational use, possession and cultivation of cannabis in California, and created a comprehensive
regulatory and dual licensing system for commercial cannabis activity in the State effective
January 2018; and
WHEREAS, Proposition 64 was approved by sixty-seven percent (67%) of the voters in
the City of San Luis Obispo; and
WHEREAS, prior to the passage of Proposition 64, the City took the position that
commercial cannabis activity was prohibited in the city under principles of permissive zoning,
which holds that uses that are not expressly allowed or conditionally allowed under zoning
regulations are prohibited within the City; and
WHEREAS, after the passage of Proposition 64, in 2017 the City Council adopted
Ordinance 1633, amending Chapter 9.10 of the Municipal Code to maintain and make explicit the
existing commercial prohibitions on commercial and industrial recreational and medical
marijuana/cannabis-related uses, activities, businesses, or operations within the city and to limit
outdoor cultivation, while the city conducted public outreach; and
WHEREAS, City staff has conducted extensive public outreach; and
WHEREAS, after review of the information gathered by staff during public outreach, the
City Council directed staff to recommend and draft amendments to the Municipal Code to permit
commercial cannabis activities within the City; and
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WHEREAS, in 2017, the California legislature passed, and Governor Brown signed
Senate Bill 94, which enacted the Medicinal and Adult-Use Cannabis Regulation and Safety Act
(“MAUCRSA”), and repealed the Medical Cannabis Regulation and Safety Act (“MCRSA”), but
incorporated certain provisions of MCRSA into the licensing provisions established by Proposition
64; and
WHEREAS, before any commercial cannabis activities in the City can begin, revision of
Title 17, Zoning, and repeal and replacement of Title 9, Public Peace, Morals and Welfare (Chapter
9.10,) is required; and
WHEREAS, as part of the process to permit commercial cannabis activity in the City, the
City desires to update Title 9 and Title 17 to establish regulations for the operation of cannabis
businesses, consistent with current state law and City permitting and land use requirements; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on
March 28, 2018 and March 29, 2018, for the purpose of considering amendments to Title 17
(Zoning Regulations) of the Municipal Code to establish land use regulations for the operation of
commercial cannabis businesses, and making recommendations to the City Council regarding such
amendments.
WHEREAS, the proposed amendments were considered at regular, duly noticed meeting
of the City Council on May 1, 2018;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows/or that (whatever action is needed):
SECTION 1. Findings. Based upon all the evidence, the Council makes the following
additional findings.
a) The proposed amendments to Title 17 are consistent the City’s General Plan.
b) The proposed amendments to Title 17 are consistent with existing zoning practices
in the City, so that commercial cannabis activities will be permitted only in zones
which already allow for similar uses, such as retail, manufacturing and laboratories,
consistent with existing performance standards and levels of planning review
applicable to similar uses.
c) The amendments to Title 9 and Title 17 enacted by this ordinance promote the
public health, safety, convenience, and welfare of the city by creating clear and
complementary land use, business operations, and personal conduct standards and
requirements to ensure the safe and orderly implementation of Proposition 64 and
Senate Bill 94 in the City, taking into consideration the unique local circumstances
and needs of City residents, as well as law enforcement and regulatory enforcement
staff.
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d) The proposed amendments establish reasonable regulations regarding the
establishment of commercial cannabis businesses in the City, are consistent with
State law, maintain local control over land use and balance the City's competing
interests in allowing certain commercial and research-related cannabis activities
desired by the majority of voters, with the public health, welfare, and safety
concerns of the City.
e) The City requires discretionary review and approval of permits, licenses and other
authorizations necessary to engage in commercial cannabis activity. Such review
and approval include applicable environmental review.
SECTION 2. Environmental Review. Until July 1, 2019, Business and Professions Code
section 26055, subdivision (h), as amended by SB 94, provides that the California Environmental
Quality Act (“CEQA”) does not apply to the adoption of an ordinance, rule, or regulation by a
local jurisdiction that requires discretionary review and approval of permits, licenses, or other
authorizations to engage in commercial cannabis activity, so long as the discretionary review
includes any applicable environmental review pursuant to CEQA. The proposed ordinance is
subject to a statutory exemption from CEQA because the City requires discretionary review and
approval, including applicable environmental review pursuant to CEQA, of permits, licenses or
other authorizations to engage in commercial cannabis activity.
SECTION 3. This Ordinance shall be known as the “Cannabis Land Use and Business
Regulation Implementation Ordinance.”
SECTION 4. Chapter 9.10 of the City of San Luis Obispo’s Municipal Code is hereby
repealed and replaced in its entirety as set forth in Exhibit A.
SECTION 5. Chapter 17.99 of the City of San Luis Obispo’s Municipal Code is hereby
added as set forth in Exhibit B.
SECTION 6. Chapter 17.22, Table 9 of the City of San Luis Obispo’s Municipal Code is
hereby amended as set forth in Exhibit C.
SECTION 7. Chapter 17.100 of the City of San Luis Obispo’s Municipal Code is hereby
amended as set forth in Exhibit D.
SECTION 8. No land use or operator permits under the terms of the provisions adopted
and/or amended herein shall be issued and no commercial cannabis business operations shall be
allowed in the City after the effective date of this ordinance unless and until the voters of the City
approve a cannabis revenue measure.
SECTION 9. Severability. If any subdivision, paragraph, sentence, clause, or phrase of
this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of
the remaining portions of this Ordinance, or any other provisions of the City’s rules and
regulations. It is the City’s express intent that each remaining portion would have been adopted
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irrespective of the fact that any one or more subdivisions , paragraphs, sentences, clauses, or
phrases be declared invalid or unenforceable
SECTION 10. A summary of this ordinance, together with the names of Council members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at
the expiration of thirty (30) days after its final passage.
INTRODUCED on the ___ day of ___, 2018, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ___ day of ___, 2018, on the following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Teresa Purrington
City Clerk
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Chapter 9.10 Cannabis Regulations
9.10.010 Purpose and Intent.
9.10.020 Definitions
9.10.030 Personal Cultivation Limited
9.10.040 Commercial Cannabis/City Permit and State License Required
9.10.050 Regulations and Fees
9.10.060 Display and Production of Permits
9.10.070 Commercial Cannabis Operator Permit Application Procedures and Requirements.
9.10.080 Renewal of Permit
9.10.090 Suspension or Revocation of Permit
9.10.100 Appeal
9.10.110 Right to Occupy and Use Property for Commercial Cannabis Activity
9.10.120 Prohibition on Transfer of Commercial Cannabis Operator Permits.
9.10.130 Records and Reporting.
9.10.140 Inspection and Enforcement.
9.10.150 Outdoor Commercial Cannabis Cultivation and Activities Prohibited
9.10.160 Indemnification, Insurance, Reimbursement, Consent
9.10.170 Compliance with Laws
9.10.180 Permit Violation
9.10.190 Permit Compliance Monitoring
9.10.200 Permit Holder Responsible for Violations by Employees or Agents
9.10.210 Consumption or Use Prohibited On-site and In Public
9.10.220 Concurrent Alcohol Sales or Service Prohibited
9.10.230 Minors
9.10.240 Sale of Cannabis, Cannabis Products or Cannabis Accessories by Vending Machine
prohibited
9.10.250 Security Measures
9.10.260 Limitations on City’s Liability.
9.10.270 Fees Deemed Debt to City
9.10.280 Violation and Penalties
9.10.290 Severability
9.10.010 Purpose and Intent.
A. It is the primary purpose and intent of this Chapter to protect the health, safety, and welfare of
the residents of the City of San Luis Obispo from the negative impacts of illegal commercial
and non-commercial cannabis activity, and of state authorized cannabis activity, by enforcing
city ordinances, rules and regulations consistent with applicable State law, including, but not
limited to, the Compassionate Use Act, the Medical Marijuana Program Act, the Adult Use of
Marijuana Act, and the Medicinal and Adult Use of Cannabis Regulatory and Safety Act.
B. This Chapter is not intended to, and shall not be construed to, prohibit or interfere with any
right, defense or immunity afforded to a patient or a patient’s primary caregiver, under Health
and Safety Code Section 11362.5 (the Compassionate Use Act), or a qualified patient or a
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qualified patient’s primary caregiver, under Health and Safety Code Section 11362.7 et. seq.
(the Medical Marijuana Program Act).
C. This Chapter is not intended to, and shall not be construed to, prohibit or interfere with any
right, defense or immunity of any person 21 years of age or older relating to the adult personal
possession or cultivation of cannabis or marijuana consistent with the provisions of the
Control, Regulate and Tax Adult Use of Marijuana Act, and the Medicinal and Adult Use of
Cannabis Regulatory and Safety Act.
D. Nothing in this Chapter shall be construed to authorize the cultivation, possession or use of
marijuana for any purpose inconsistent with state or local law.
E. Any reference to California statutes includes any regulations promulgated thereunder and is
deemed to include any successor or amended version of the referenced statute or regulation.
9.10.020 Definitions
A. State defined terms. Words or terms used in this chapter that are defined words or terms in
Business and Professions Code Section 26001, or Health and Safety Code Section 11362.7 (the
Statutes”) shall have the meanings ascribed to them in the Statutes as they now read, or as they
may be amended to read. These state defined words and terms include, but are not limited to,
“cannabis”, “cannabis accessories”, “cannabis concentrate”, ”cannabis products”,
“commercial cannabis activity”, ”cultivation”, “delivery”, “distribution”, ”identification card”,
“license”, “live plants” “manufacture”, ”operation”, “person”, “person with an identification
card”,” physician’s recommendation”, ‘premises”, “primary caregiver”, “qualified patient”
“sell”, “sale”, “to sell”. Some of these terms are also set forth in Chapter 17.100 of this code.
In the event of conflict in the definitions, the Statutes’ definitions shall control. Terms used in
this chapter that are not defined by the Statutes or chapter 17.100, shall have the meanings set
forth in subsection B below.
B. City defined terms. The following words or terms used in this chapter have the following
meanings:
1. “Commercial Cannabis Business” means any person or entity engaging in any business,
operation or activity which is Commercial Cannabis Activity under state law in the
city.
2. “Commercial Cannabis Operator Permit” means a permit required by the City of San
Luis Obispo pursuant to this chapter to conduct Commercial Cannabis Activity or a
Commercial Cannabis Business in the city.
3. “Responsible Party(ies)” shall be one or more individuals who have an ownership
interest in a Commercial Cannabis Activity and are designated to be personally
responsible for compliance with all terms and conditions of the Commercial Cannabis
Operator Permit, all other permits required by the city, and all ordinances and
regulations of the city. Any person having an ownership interest of more than fifty
percent in a Commercial Cannabis Activity shall be designated a Responsible Party on
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the application. If no individual owns more than fifty percent of a Commercial
Cannabis Activity, the individual owning the largest share shall be a Responsible Party,
and if multiple individuals have the same percentage interest, each one shall be a
Responsible Party. More than one individual can be designated a Responsible Party.
9.10.030 Personal Cultivation Limited
A. Maximum Six Plants Outdoors Per Parcel. It shall be unlawful for any person to plant,
cultivate, harvest, dry, process, maintain, possess or store outdoors, more than six (6) live
cannabis plants on any parcel containing one or more private residences. This limitation on
outdoor personal cannabis activities applies per parcel, regardless of the number of residents
in each private residence, and regardless of the number of residences on the parcel. This
limitation applies to cannabis live plants for either adult recreational use or medicinal purposes.
Outdoor personal cultivation shall comply with standards and requirements in chapter 17.99
of this Code.
B. Maximum Six Plants Per Private Residence, Indoors and Outdoors/Medicinal Exception.
Except for qualified patients with a Medical Marijuana Identification Card and the primary
caregivers of such persons, as provided in Subsection C below, it shall be unlawful for the
cumulative total of cannabis plants per private residence, indoors and outdoors, to exceed six
(6) cannabis live plants, regardless of number of persons residing in the private residence. Any
live cannabis plants grown indoors shall comply with applicable provisions of Chapter 17.99
of this Code.
C. Medicinal Cannabis Indoors if Exceed Six Plants. For qualified patients with a Medical
Marijuana Identification Card, or the primary caregivers of such persons, any cannabis live
plants in excess of six per private residence, shall be cultivated indoors and shall comply with
applicable provisions of Chapter 17. 99 of this Code.
D. No Outdoor Cultivation on Parcel without Private Residence. It shall be unlawful for any
person to plant, cultivate, harvest, dry, process, maintain, possess or store any cannabis live
plants outdoors on a parcel that does not have a private residence used for residential dwelling
purposes by the person cultivating the cannabis live plants.
E. Neighborhood Impacts of Personal Cultivation. There shall be no exterior evidence of cannabis
cultivation occurring at the property visible by normal unaided vision from a public place or
the public right-of-way and any outdoor cultivation shall comply with provisions of Chapter
17.99.040 of this code. Personal cultivation of cannabis, for recreational adult use or for
medicinal purposes, shall not create odors, dust, heat, noise, light, glare smoke or other impacts
to people of normal sensitivity living, working or lawfully present in the vicinity of the personal
cultivation site. Impacts that cross the nearest property line of any other parcel, beyond that
parcel on which the personal cultivation is conducted, or that are visible or noticeable with
normal unaided vision, from a public place or the public right of way, or from any separately
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owned, leased or controlled private residence or business on the same parcel as the private
residence responsible for the personal cultivation, are unlawful.
F. No Hazardous Personal Cultivation. Personal cultivation, harvesting, drying, or processing of
cannabis, for recreational adult use or medicinal purposes, that uses or stores hazardous or
toxic chemicals or materials, creates hazardous or toxic products or wastes, or uses volatile
processes or other methods or substances that pose a significant risk to public health or safety,
is prohibited and unlawful.
9.10.040 Commercial Cannabis/City Permit and State License Required
A. City Commercial Cannabis Operator Permit Required. No person shall engage in Commercial
Cannabis Activity or have an ownership interest in, operate, or manage, a Commercial
Cannabis Business without obtaining and continuously maintaining a Commercial Cannabis
Operator permit pursuant to this chapter.
B. Commercial Cannabis Operator Permit and State License(s) Required. It shall be unlawful for
any person to own, conduct, manage, operate, engage or participate in, work or volunteer at a
Commercial Cannabis Activity or Commercial Cannabis Business that does not have a valid
Commercial Cannabis Operator’s Permit issued pursuant to this chapter and other city permits
or licenses required by this Code, in addition to the appropriate license(s) required by state law
to conduct the Commercial Cannabis Activity. Any Commercial Cannabis Business or
Commercial Cannabis Activity conducted without all required city and state permits and
licenses is prohibited and unlawful and is hereby declared to be a public nuisance.
9.10.050 Regulations and Fees.
The City Council shall by resolution or ordinance adopt such forms, fees, regulations and
procedures as are necessary to implement this Chapter with respect to the application and
qualification for, and the selection, future selection, investigation, process, issuance, renewal,
revocation, and suspension of, Commercial Cannabis Operator Permits.
9.10.060 Display and Production of Permits
A. Dual Permits Posted and Visible. A copy of the Commercial Cannabis Operator permit issued
by the City of San Luis Obispo pursuant to this Chapter, together with a copy of the appropriate
state license(s) for the Commercial Cannabis Activity being conducted, shall be posted and
readily visible to the public at all times, at each location where Commercial Cannabis Activity
occurs.
B. Production of Originals for Inspection. Any owner, operator , employee or person in charge of
a Commercial Cannabis Activity shall produce for inspection and copying, upon request of a
City inspector, code enforcement officer, or City police officer during normal operating hours,
the original of the current and valid City of San Luis Obispo Commercial Cannabis Operator
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Permit and the appropriate, current and valid license(s) of the State of California for the
Commercial Cannabis Activity(ies) or Commercial Cannabis Business(es) being conducted.
9.10.070 Commercial Cannabis Operator Permit Application Procedures and
Requirements
A. Application. A person shall apply for a Commercial Cannabis Operator permit by submitting
an application to the City during the annual application period. The City Council will, by
resolution, adopt criteria by which all applications will be reviewed, applicants qualified and
ranked. Those applicants that are selected will have the opportunity to apply for a use permit
as outlined in Chapter 17.99. Each application shall designate at least one Responsible Party.
If a person is not selected to receive a Commercial Cannabis Operator Permit, the person may
reapply during the next annual application period.
B. Application Submittal Timeframe. A person may only submit one application for a commercial
cannabis operator permit during the annual application period designated by resolution of the
City Council. In no event will the Commercial Cannabis Operator permit be valid for for more
than a twelve (12) month period. There is no guarantee that an applicant will receive a
commercial cannabis operator permit. Due to limitations on the number of certain permits,
even a highly ranked applicant may not receive a commercial cannabis operator permit and
even an applicant who receives a commercial cannabis operator’s permit is not guaranteed that
any subsequent, required land use permit, as outlined in Chapter 17.99, will be approved.
C. Grounds for Automatic Disqualification.
In addition to any other reason that may be established by the City Council as a basis for
disqualification, an applicant shall be disqualified from applying for, or obtaining, a
Commercial Cannabis Operator Permit if:
1. The applicant fails to timely file an application during the annual application period.
2. The Responsible Party refuses to sign the application and agree to be personally
responsible for compliance, and personally liable for failure to comply, with the
provisions of this chapter.
3. Any person listed in the application has been convicted of a felony. No person who has
been convicted of a felony may be engaged (actively or passively) in the operation ,
management or ownership of any Commercial Cannabis Business. A conviction within
the meaning of this Chapter means a plea or verdict of guilty or a conviction or
diversion following a plea of nolo contendere. However, a person with a felony
conviction solely related to personal marijuana use or marijuana activity that would
otherwise be permitted under current state law shall not be prohibited from applying or
being approved for a Commercial Cannabis Operator Permit solely on the basis of such
a conviction or plea of nolo contendere.
4. The applicant made one or more false or misleading statements or omissions in the
application process.
5. Any person listed on the application is a licensed physician making patient
recommendations for medical or medicinal cannabis pursuant to State law.
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6. Any person listed in the application is less than twenty-one (21) years of age.
D. Duration and Activation of Permit. Each Commercial Cannabis Operator permit issued
pursuant to this Chapter shall expire twelve (12) months after the date of its activation. The
permittee may apply for renewal prior to expiration in accordance with this chapter. Each
Commercial Cannabis Operator Permit must be activated within 12 months of issuance. The
permit is activated by the issuance of a use permit for the Commercial Cannabi s Activity
pursuant to Chapter 17.99, together with all other applicable city permits and state licenses,
and the Commercial Cannabis Operator thereafter opening and continuously operating the
Commercial Cannabis Activity. Failure to timely activate the pe rmit shall be deemed
abandonment of the permit and the permit shall automatically lapse.
9.10.080 Renewal of Permit
A. Renewal Application Filing Deadline. An application for renewal of a Commercial Cannabis
Operator Permit shall be filed at least sixty (60) calendar days, but not more than one hundred
twenty (120) calendar days, prior to the expiration date of the permit with the City Manager or
his/her designee. If the complete application and fees are timely submitted but the City does
not act to approve or reject the renewal prior to expiration, the permittee may continue to
operate under the expired permit until the City approves or rejects the application for renewal.
B. Rejection of Renewal Application. An application for renewal of a Commercial Cannabis
Operator Permit shall be rejected if any of the following exists.
1. The application is filed less than sixty (60) days before its expiration.
2. The Commercial Cannabis Operator Permit, is revoked at the time of the application or
renewal.
3. The applicant conducted unpermitted commercial cannabis activities in the city or
continued to conduct formerly permitted commercial cannabis activities after
expiration of the permit, other than as expressly permitted by this section.
4. The applicant has received an administrative citation for violating any provision of this
Code relating to its Commercial Cannabis Activity(ies) in the city during the last twelve
months, and the administrative citation has not been resolved in the applicant’s favor
by date of application for renewal. A pending, unresolved appeal of an administrative
citation shall not result in rejection of an otherwise timely and complete application,
but resolution of an appeal in a manner that upholds the violation against the applicant
during the application review period shall result in the immediate rejection of the
application.
5. The Commercial Cannabis Business has not been in regular and continuous operation
in the three (3) months immediately prior to the renewal application.
6. The Commercial Cannabis Business fails to conform to the requirements of this
Chapter, any regulations adopted pursuant to this Chapter or the conditions imposed as
part of any Use Permit or zoning requirements under Chapter 17.99 of this Code.
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7. Any of the grounds for disqualification for prequalification set forth in Section
9.10.070(C) above, or as established by the City Council, exist at the time of application
for renewal, or date of renewal.
8. The permittee fails to renew any required State of California license(s), or the State
revokes or suspends the license. Revocation, termination, non-issuance or suspension
of a license issued by the State of California, or any of its departments or divisions,
shall immediately, concurrently revoke, terminate, or suspend, respectively, the
Commercial Cannabis Operator Permit. Such automatic suspension makes it illegal for
a Commercial Cannabis Business or Activity to operate within the City of San Luis
Obispo until the State of California, or its respective department or division, reinstates
or issues the State license.
C. Effect of Rejection of Application for Renewal. Operations to Cease Pending Appeals . If a
renewal application is rejected, the Commercial Cannabis Operator Permit expires on the
expiration date set forth in the permit, even if an appeal has been filed. All commercial cannabis
activities in the City under the expired permit must stop until all appeals have been exhausted.
A person or entity whose renewal application is rejected, and loses his/her/its appeal, must go
through the annual Commercial Cannabis Business Operator Permit application process.
9.10.090 Suspension or Revocation of Permit.
In addition to any other penalty authorized by law, a Commercial Cannabis Operator Permit may
be suspended or revoked if the city finds, after notice to the permitee and opportunity to be heard,
that the permitee or his or her agents or employees has violated any condition of the permit
imposed pursuant to, or any provision of, this chapter.
1. Upon a finding by the city of a first permit violation within any five-year period, the permit
shall be suspended for thirty days.
2. Upon a finding by the city of a second permit violation within any five-year period, the
permit shall be suspended for ninety days.
3. Upon a finding by the city of a third permit violation within any five-year period, the permit
shall be revoked.
9.10.100 Appeal.
A. Qualification. Ranking. A decision of the city to not qualify an applicant for a Commercial
Cannabis Operator Permit, or to rank applicants, or to allow qualified applicants with the
highest rankings the first opportunity to apply for a Commercial Cannabis Operator Permit,
shall be the final action of the City and not appealable.
B. Non-renewal, Revocation or Suspension. A decision of the City to reject an application for
renewal, or to revoke or suspend a Commercial Cannabis Operator Permit, is appealable to the
City Manager. An appeal must be filed with the City Manager within ten working days after
the renewal has been denied, suspended or revoked. A decision of the City Manager or his or
her designee is appealable to the City Council in accordance with Chapter 1.20 of this Code.
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C. Effect of Suspension. During a period of license suspension, the Commercial Cannabis
Business shall remove from public view, all cannabis and cannabis products, and shall not
conduct any Commercial Cannabis Activity.
D. Revocation. Notice to State. Pursuant to Business and Profession Code Section 26200 (c), the
City Manager or his or her designee shall promptly notify the Bureau of Cannabis Control
within the Department of Consumer Affairs, upon city’s revocation of any local license,
permit, or authorization for a state licensee to engage in commercial cannabis activity within
the city.
9.10.110 Right to Occupy and to Use Property for Commercial Cannabis Activity.
As a condition precedent to the City’s issuance of a Commercial Cannabis Operator Permit
pursuant to this Chapter, any person intending to open and operate a Commercial Cannabis
Business shall provide evidence satisfactory to the City of the applicant’s legal right to occupy and
to use the proposed location for the proposed use, together with the approval of a use permit from
the city for cannabis activity at the location. In the event the proposed location is owned by or to
be leased from another person, the applicant for a permit under this Chapter shall provide a signed
and notarized statement from the property owner agreeing to the operation of a Commercial
Cannabis Business on the property.
9.10.120 Prohibition on Transfer of Commercial Cannabis Operator Permits.
A. Business Restriction to Location on Permit. It shall be unlawful for any person to transfer a
Commercial Cannabis Operator Permit to a location not specified on the permit, or to operate
a Commercial Cannabis Business at any place or location other than that identified on the
Commercial Cannabis Operator Permit issued pursuant to this Chapter.
B. Transfer or Assignment Prohibited. No person or entity shall encumber, mortgage, lien,
hypothecate, give, bequeath, sell, assign or transfer, by operation of law or otherwise, any
portion of the ownership or control of a Commercial Cannabis Business or a Commercial
Cannabis Operator Permit. The Commercial Cannabis Operator Permit shall terminate
immediately and automatically upon such assignment or transfer unless and until the City
prequalifies the transferee or assignee during the annual prequalification period; the transferee
or assignee submits all required information, pays all applicable fees and charges, , and obtains
the prior consent of the City Council.
C. Assignment Null and Void. Any attempt to transfer, sell, assign, give, or lien, or any transfer,
sale, assignment, gift or lien, of a Commercial Cannabis Operator Permit issued pursuant to
this Chapter, by operation of law or otherwise, in violation of this chapter, is prohibited. Any
such action immediately voids, nullifies and terminates the Commercial Cannabis Operator
Permit, which shall be of no further force or effect.
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9.10.130 Records and Reports.
A. City Access to Records. Subject to the Health Insurance Portability and Accountability Act
(HIPAA) regulations, each Commercial Cannabis Business shall allow City of San Luis
Obispo officials to have access to the Commercial Cannabis Business’s books, records,
accounts, and any and all data relevant to its permitted activities for the purpose of conducting
an audit, examination or inspection. Books, records, accounts, and any and all relevant data
will be produced no later than twenty-four (24) hours after receipt of the City’s request or
within a reasonable time as authorized in writing by the City.
B. Annual Audit. Each Commercial Cannabis Business shall file with the City Manager or his/her
designee an audit of its financial operations for the previous fiscal year, complete and certified
by an independent certified public accountant in accordance with generally accepted auditing
and accounting principles. The audit shall include but not be limited to a discussion, analysis,
and verification of each of the records required to be maintained pursuant to this Chapter. The
information contained in the audit shall be made available in standard electronic format which
shall be compatible with programs and software used by the City, and which can easily be
imported into either Excel, Access or any other contemporary software designated by the City
Manager.
C. Inventory Control system. All Commercial Cannabis Businesses shall maintain an inventory
control and reporting system that accurately documents the present location, amounts, and
descriptions of all cannabis and cannabis products for all stages of the growing and production
or manufacturing, laboratory testing and distribution processes until sold or distributed.
D. Employee Registry. Each owner and/or operator of a Commercial Cannabis Business shall
maintain a current register of the names and the contact information (including the name,
address, and telephone number) of all employees currently employed by the Commercial
Cannabis Business and shall disclose such register to any City of San Luis Obispo official upon
request.
E. Reporting and Tracking of Product and of Gross Sales. Each Commercial Cannabis Business
shall have in place a point-of-sale tracking system to track and to report on all aspects of the
Commercial Cannabis Business including, but not limited to, such matters as cannabis
tracking, inventory data, and gross sales (by weight and by sale) and shall ensure that such
information is compatible with the City’s record-keeping systems. The system must have the
capability to produce historical transactional data for review by the City of San Luis Obispo.
All information provided to the City pursuant to this sub-Chapter shall be confidential and
shall not be disclosed, except as may otherwise be required under law.
F. Maintenance of Records. All records required by this Chapter shall be maintained by the
Commercial Cannabis Business for a period of not less than seven (7) years and shall otherwise
keep accurate records of all Commercial Cannabis Business activity and provide such records
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for inspection consistent with this Code or any rules the City Council by resolution or
ordinance.
9.10.140 Inspection and Enforcement.
A. Unscheduled Inspection during Business Hours. The City Manager or his/her designee and any
other City of San Luis Obispo official or inspector charged with enforcing any provisions of
this Code, may enter a Commercial Cannabis Business at any time during the hours of
operation without notice for the purpose of inspecting the Commercial Cannabis Business for
compliance with the provisions of this Code, the terms and conditions of the Commercial
Cannabis Operator Permit or any other city permit or state license, including inspection of the
recordings and records maintained pursuant to this Chapter or the applicable provisions of
State law. The right to inspect under this inspection includes the right to copy recordings and
records.
B. Interference with Inspection. It is unlawful for any person who owns, operates, manages or is
employed by, or has any responsibility over the operation of, a Commercial Cannabis Business,
to refuse to allow, or to impede, obstruct, or interfere with, an inspection by the city, or the
city’s review or copying of recordings (including audio and video recordings) and records , or
to conceal, destroy, alter or falsify any recordings or records.
C. Obtaining Samples. The City Manager or his/her designee or any other person charged with
enforcing the provisions of this Chapter may enter the location of a Commercial Cannabis
Business at any time during the hours of operation and without notice to obtain samples of
cannabis and cannabis products to test for law enforcement and/or public safety purposes. Any
samples obtained by the City of San Luis Obispo shall be logged, recorded, and maintained in
accordance with City of San Luis Obispo Police Department standards for evidence. At all
other times, the City Manager or his/her designee may enter the location of a Commercial
Cannabis Business to obtain samples of cannabis upon reasonable notice, as otherwise
authorized by law or pursuant to a warrant.
9.10.150 Outdoor Commercial Cannabis Cultivation and Activities Prohibited.
A. Outdoor Commercial Cultivation prohibited. Outdoor commercial cannabis cultivation,
including, but not limited to, cultivation in greenhouses, hoop structures, and by mixed light
(part daylight/part artificial light), is prohibited and unlawful. This section prohibits all outdoor
commercial cannabis cultivation, including cultivation for profit or not for profit cultivation,
and including commercial cultivation for adult recreational use or medicinal purposes. For
purposes of this section, outdoor cultivation of cannabis by cooperatives is prohibited. All
commercial cannabis cultivation shall be conducted only inside a fully enclosed structure by a
person or entity with a Commercial Cannabis Operator Permit, a city use permit, and
appropriate State license(s). See also Section 17.99.050 G 3 of this Code.
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B. Outdoor Commercial Cannabis Activities Prohibited. Outdoor storage, harvesting, drying,
processing, or manufacturing of commercial cannabis or cannabis products is prohibited and
unlawful.
9.10.160 Indemnification, Insurance, Reimbursement, Consent.
As a condition of approval of any Commercial Cannabis Operator Permit issued pursuant to this
Chapter, the permitee shall, at a minimum:
A. Execute an agreement to protect, indemnify, defend (at its sole cost and expense with counsel
approved by City), and hold the City of San Luis Obispo and its officers, employees, attorneys,
representatives, and agents harmless from and against any and all claims, demands, losses,
damages, injuries, costs, expenses (including attorneys’ fees) fines, penalties, or liabilities
arising from, related to or associated with: the issuance of a Commercial Cannabis Operator
Permit or use permit; the permitting or approving the operation of a Commercial Cannabis
Activity; the collection of any fees, taxes, or charges from a Commercial Cannabis Business;
the Commercial Cannabis Business’s or any of its owners’, operators’, managers’, employees,
or agents’ violation of any federal, state or local laws; the City’s suspension, revocation or
refusal to renew the Commercial Cannabis Operator Permit.
B. Maintain insurance with standard city coverages and limits, but with additional conditions
thereon deemed necessary by the City Attorney.
C. Reimburse the City of San Luis Obispo for any and all costs, expenses, attorney fees , fines,
penalties and court costs that the City of San Luis Obispo may be required to pay as a result of
any legal challenge related to the City’s approval of a Commercial Cannabis Operator Permit
pursuant to this Chapter or any other city permit or the City of San Luis Obispo’s approval of
the operation of a Commercial Cannabis Activity. The City of San Luis Obispo may, at its
sole discretion, participate at its own expense in the defense of any such action, but such
participation shall not relieve the obligations imposed under this Chapter.
D. Consent to unscheduled inspections, production of records and recordings, and obtaining of
samples of cannabis and cannabis products by authorized City officials during normal
operating hours as provided in this chapter.
9.10.170 Compliance with Laws.
The Commercial Cannabis Business shall operate all times in compliance with all applicable state
and local laws, regulations, and any specific, additional operating procedures or requirements
which may be imposed as conditions of approval of the Commercial Cannabis Operator Permit or
use permit or state license(s). Nothing in this Chapter shall be construed as authorizing any action
which violates state law or local law with respect to the operation of a Commercial Cannabis
Activity
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9.10.180 Permit Violation.
Compliance with all local and state cannabis-related laws shall be a condition of a city Commercial
Cannabis Operator Permit and it shall be a violation of a license for a licensee or his or her agents
or employees to violate any local, state or federal tobacco-related law.
9.10.190 Permit Compliance Monitoring.
Compliance with this chapter shall be monitored by the San Luis Obispo police department, Code
Enforcement staff and/or any other duly authorized agent of the City. Any compliance checks
pursuant to this chapter shall be in addition to any under any other ordinances, regulations or
permits. At least four compliance checks of each cannabis retailer shall be conducted during each
twelve-month period. At least two compliance checks of each commercial cannabis business other
than a retailer shall be conducted during each twelve-month period. The cost of compliance
monitoring shall be incorporated into the annual renewal fee.
9.10.200 Permit Holder Responsible for Violations By Employees or Agents.
The responsible person and any entity to whom a Commercial Cannabis Operator permit is issued
pursuant to this Chapter shall be responsible for all violations of the regulations and ordinances of
the City of San Luis Obispo, committed by the permittee, any employee or agent of the permittee,
which violations occur in or about the premises of the Commercial Cannabis Business, even if the
responsible person is not present. Violations by an employee or agent may result in the termination
or non-renewal of the permit by City.
9.10.210 Consumption or Use Prohibited On-site and in Public
It is unlawful for any person or entity:
a. To sell, give, exchange, dispense or distribute cannabis or cannabis products for on-site
consumption, use or sampling on any business premises; or
b. To consume or use cannabis or cannabis products, whether by smoking, vaping, inhaling,
eating, drinking or any other means:
1. in, on or about the premises of any Commercial Cannabis Business;
2. in, on or about any publicly owned or operated property; any place open to, or
accessible by the public; any place smoking is prohibited; or any place visible
from any public place with normal unaided vision.
9.10.220 Concurrent Alcohol or Tobacco Sales or Service Prohibited.
A. No person shall dispense, serve, store, give away or consume, or cause or permit the sale,
dispensing, serving, giving away or consumption of alcoholic beverages or tobacco in or on
the premises of a Commercial Cannabis Business.
B. No person shall conduct any Commercial Cannabis Activity at any location where alcohol is
sold or served.
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9.10.230 Minors
A. Minors shall not be allowed on the premises of a commercial Cannabis Business having either
an “A” or “M” license, or both, even if accompanied by a parent or guardian.
B. Every entrance to an “A” or “M” licensed Commercial Cannabis Business shall be clearly and
legibly posted with the following notice: “ENTRY ONTO THESE PREMISES BY PERSONS
UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. VALID PHOTO ID REQUIRED.”
Each letter of the notice must be at least two inches high and clearly visible.
C. No person, business, or other entity conducting a Commercial Cannabis Activity with either
an “A” or “M’ state license shall employ any person who is not at least twenty-one (21) years
of age.
9.10.240 Sale of Cannabis Products or Cannabis Accessories by Vending Machine
prohibited
A. No person shall locate, install, keep, maintain or use, or permit the location, installation,
keeping, maintenance or use on his, her or its premises of any cannabis vending machine used
or intended to be used for the purpose of selling any cannabis products or cannabis accessories
therefrom.
B. No person, business, or other entity shall sell, offer for sale, or display for sale any cannabis
product by means of a self-service display or vending machine. All cannabis products shall be
offered for sale exclusively by means of vendor/employee assistance.
C. “Vending machine” means any electronic or mechanical device or appliance the operation of
which depends upon the insertion of money, whether in coin or paper bill, or debit or credit
card, or other thing representative of value, which device or appliance dispenses or releases
cannabis, cannabis product(s) and/or cannabis accessories.
9.10.250 Security and Public Safety Measures.
A. The City Manager or his/her designee(s) is authorized to promulgate all regulations necessary
to implement the requirements and fulfill the purposes and policies of this Chapter, including
but not limited to enforcement, background checks for applicants, approval and enforcement
of a Commercial Cannabis Activity security plan, including audio and video recordings of
operations, and verification of compliance.
B. Every Commercial Cannabis Activity and every Commercial Cannabis Activity shall have a
security plan approved by the Chief of Police or designee prior to issuance of a City
Commercial Cannabis Operator Permit.
C. Hours of Operation.
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a. Retail -Storefront. Retail-Storefront Commercial Cannabis Business shall not
operate between the hours of 8 PM and 9 AM.
9.10.260 Limitations on City’s Liability.
The City shall not be liable for issuing, or failing or refusing to issue, suspending, revoking or
failing to renew a Commercial Cannabis Operator Permit pursuant to this Chapter or otherwise
approving or disapproving the operation of any Commercial Cannabis Business pursuant to this
Chapter.
9.10.270 Fees Deemed Debt to City.
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to
the City of San Luis Obispo that is recoverable in any court of competent jurisdiction.
9.10.280 Violation and Penalties.
A. Misdemeanor. Each violation of the provisions of this chapter shall be a misdemeanor and is
punishable as provided in Section 1.12.030 of this code.; provided, that where the city attorney
determines that such action would be in the interest of justice, he/she may specify in the
accusatory pleading that the offense shall be an infraction. Any violation of the provisions of
this chapter by any person is also subject to administrative fines as provided in Chapter 1.24
of this code.
B. Infraction Violation. Where the city attorney determines that, in the interest of justic e, a
violation of this chapter is an infraction, such infraction is punishable by a fine not exceeding
one hundred dollars for a first violation, a fine not exceeding two hundred dollars for a second
violation of the same provision within one year, and a fine not exceeding five hundred dollars
for each additional infraction violation of the same provision within one year.
C. The fine amounts set forth above may be modified, from time to time, by city council
resolution. In no event shall such fine amounts exceed the amounts authorized by state law.
D. If the city of San Luis Obispo finds, based on substantial record evidence, that any person has
engaged in Commercial Cannabis Activity in violation of Chapter 9.10, the city shall fine that
person as follows. Each day that person without a Commercial Cannabis Operator Permit
offers cannabis or cannabis products for sale or exchange shall constitute a separate violation
and assessed a fine in accordance with Sections 1.12.080 and 1.24.070(A) of this code.
E. Each person committing, causing, or maintaining a violation of this chapter or failing to
comply with the requirements set forth herein shall be deemed guilty of a separate offense for
each and every day during any portion of which any violation of any provision of this chapter
is committed, continued, maintained, or permitted by such person and shall be punishable
accordingly.
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F. The violation of any provision of this chapter shall be and is hereby declared to be a public
nuisance and contrary to the public interest. Any public nuisance under this chapter may, at
the city’s discretion, be abated by the city by civil process by means of a restraining order,
preliminary or permanent injunction or in any manner provided by law for the abatement of
such nuisance. The city shall also be entitled to recover its full reasonable costs of abatement.
The prevailing party in any proceeding associated with the abatement of a public nuisance shall
be entitled to recovery of attorneys’ fees incurred in any such proceeding if the city has elected
at the initiation of that individual action or proceeding to seek recovery of its own attorneys’
fees.
G. In lieu of issuing a criminal citation, the city may issue an administrative citation to any person
responsible for committing, causing or maintaining a violation of this chapter. Nothing in this
section shall preclude the city from also issuing a citation upon the occurrence of the same
offense on a separate day.
H. The remedies set forth in this chapter are cumulative and in addition to any and all other l
remedies available at law or equity, whether set forth elsewhere in the San Luis Obispo
Municipal Code, or in state or federal laws, regulations, or case law. In addition to other
remedies provided by this chapter or by other law, any violation of this chapter may be
remedied by a civil action brought by the city attorney, including but not limited to
administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement
proceedings, and suits for injunctive relief. The remedies provided by this chapter are
cumulative and in addition to any other remedies available at law or in equity.
9.10.290 Severability.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter is for
any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect
the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs,
sentences, clauses or phrases of this chapter or the rules adopted hereby. The city council of the
city of San Luis Obispo hereby declares that it would have adopted each section, subsection,
subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or
more other sections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared
invalid or unenforceable.
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Chapter 17.99: Cannabis
17.99.010 - Purpose
17.99.020 - Applicability
17.99.030 - Definitions
17.99.040 - Personal Cultivation
17.99.050 - Commercial Cannabis Businesses
17.99.010 Purpose.
The purpose of this Chapter is to protect the public health, safety, and welfare, enact strong and
effective regulatory and enforcement controls in compliance with State of California law, protect
neighborhood character, and minimize potential for negative impacts on people, communities, and
the environment within the City if San Luis Obispo by establishing land use requirements and
development standards for cannabis activities. Cannabis Activity, as defined in Chapter
17.100.030 (“Definitions” “C”), includes the cultivation, possession, manufacturing, processing,
storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of cannabis or a
cannabis product for either personal or commercial use. Therefore, this Chapter recognizes that
cannabis activities require land use controls due to State legal constraints on cannabis activity, and
the potential environmental and social impacts associated with cannabis activity. Nothing in this
Article is intended to affect or alter federal law, which identifies marijuana (cannabis) as a
Schedule I Controlled Substance.
17.99.020 Applicability.
Nothing in this Article shall be construed to allow any conduct or activity relating to the
cultivation, distribution, dispensing, sale, or consumption of cannabis that is otherwise illegal
under local or state law, statute, rule or regulation. It is neither the intent nor the effect of this
chapter to condone or legitimize the illegal use, consumption or cultivation of cannabis under state
or local law and nothing herein is intended to interpret, alter, interfere with or in any way affect
otherwise applicable federal law.
17.99.030 Definitions.
See Section 17.100 Definitions of this code. Terms used in this ordinance that are defined terms
under state cannabis statutes or regulations shall have the same meaning as the respective state
definition, as now defined or as the definition may be amended by the state in the future, except
as otherwise specifically provided in Section 17.100 Definitions of this code or Chapter 9.10,
Cannabis Regulations, of this code.
17.99.040 Personal Cultivation.
A. Indoor Personal Cultivation.
Indoor personal cultivation of cannabis does not require a permit and is allowed in all private
residences subject to all the following minimum performance standards:
1. All indoor personal cultivation, including by a qualified patient or primary caregiver, shall
occur only inside a private residence or fully-enclosed and secure accessory building or
structure to a private residence. Accessory building or structure for indoor personal
cultivation of cannabis does not include a greenhouse or hoop structure.
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2. Medical or medicinal cannabis shall be cultivated inside a private residence only by:
a. A qualified patient or person with an identification card, as each is defined by
Health and Safety code section 11362.7 exclusively for his or her own personal
medical use but who does not provide, donate, sell, or distribute medical cannabis
to any other person; or
b. A primary caregiver, as defined by Health and Safety Code section 11362.7, who
cultivates, possesses, stores, manufactures, transports, donates, or provides medical
cannabis exclusively for the personal medical purposes of no more than five
specified qualified patients for whom he or she is the primary caregiver, but who
does not receive remuneration for these activities except for compensation in full
compliance with Health and Safety Code Section 11362.765(c).
3. Structures and equipment used for indoor cultivation, such as indoor grow lights, shall
comply with all applicable building, electrical and fire code regulations as adopted by the
city.
4. All accessory buildings and structures used for indoor cultivation shall comply with the
City’s Zoning Regulations and Building Codes.
5. Indoor personal cultivation of cannabis may occur inside a dwelling and/or an accessory
building or structure, subject to the following restrictions:
a. The cumulative cultivation for medical or medicinal cannabis shall not exceed six
(6) cannabis plants per qualified patient per private residence. Either a qualified
patient or a primary caregiver shall reside full-time on the premises where the
medical cannabis cultivation occurs.
b. For persons other than qualified patients or primary caregivers, all personal
cultivation shall be conducted by persons 21 years of age or older, and the
cumulative total of cannabis plants on the property, indoor and outdoor, shall not
exceed six (6) cannabis plants, regardless of the number of persons residing on the
property.
6. Personal cultivation of cannabis shall not interfere with the primary occupancy of the
building or structure, including regular use of kitchen(s) or bathroom(s).
7. Cannabis cultivation must be concealed from public view at all stages of growth and there
shall be no exterior evidence of cannabis cultivation occurring at the property visible with
normal unaided vision from any public place, or the public right-of-way. Personal
cultivation of cannabis shall be shielded to confine light and glare to the interior of the
structure.
8. Nothing in this section is intended, nor shall it be construed, to preclude any landlord from
limiting or prohibiting personal cultivation of cannabis by tenants.
9. Nothing in this section is intended, nor shall it be construed, to authorize commercial
cultivation of cannabis by qualified patients, persons with an identification card or primary
caregivers.
10. Personal cultivation of cannabis shall not create: offensive odors or excessive dust, heat,
noise, light, glare, smoke, traffic, or hazards due to the use or storage of materials,
processes, products or wastes, or other unreasonable impacts to persons of normal
sensitivity who are living, working or lawfully present in the vicinity of the personal
cultivation.
11. Cannabis cultivation areas in a private residence shall be locked at all times when the
cultivator is not present.
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17.99.050 Commercial Cannabis Businesses
A. Commercial Cannabis Operator Permit.
1. No person or entity shall operate or conduct a commercial cannabis activity or commercial
cannabis business without first obtaining both a Commercial Cannabis Operator Permit
from the city pursuant to Chapter 9.10, Cannabis Regulations, of the code and a use permit
from the City pursuant to this chapter to conduct the commercial cannabis activity at a
specific location. Any permit authorizing commercial cannabis activity pursuant to this
chapter shall be conditioned upon the holder obtaining and maintaining a City Commercial
Cannabis Operator Permit and the appropriate state license for the activity.
2. No permit issued for commercial cannabis activity pursuant to this chapter may be
transferred, assigned, or bequeathed, by operation of law or otherwise.
3. The Commercial Cannabis Operator Permit must be renewed each year.
4. Expiration of the use permit shall be consistent with Chapter 17.58, Section 17.58.030(C).
B. No Vested Right to Operate. No person shall have any entitlement or vested right to operate
a cannabis business solely by virtue of licensing under these regulations. Operation of cannabis
activity(ies) requires both the approval of a Conditional Use Permit and a Cannabis Business
Operator’s Permit, which is a revocable privilege and not a right in the City. The applicant bears
the burden of proving that all qualifications for licensure have been satisfied and continuously
maintained prior to conducting a cannabis business at an otherwise allowed location within the
City.
C. State Application Required. Filing a local application for cannabis activity(ies) with the City
does not constitute an application with the State of California. A separate state application and
license process must be followed through with the State.
D. Application Requirements. All commercial cannabis activities require qualification through
the commercial cannabis operator selection approval process in Chapter 9.10, Cannabis
Regulations, of this code, a state license and a use permit for a specific location pursuant to this
chapter. The application for a use permit shall include the following information:
1. Site plan, floor plans, and a general description of the nature, square-footage, parking and
type of cannabis activity(ies) being requested.
2. An operations plan including:
a. A security plan to the approval of the Chief of Police, pursuant to criteria approved
by resolution of the City Council, including but not limited to o n-site security
measures both physical and operational and, if applicable, security measures for the
delivery of cannabis associated with the commercial cannabis business and
payment of taxes and fees;
b. Plan for restriction of access by minors;
c. Employee safety and training plan;
d. Odor, noise and light management plan;
e. Estimated energy usage and energy efficiency plan;
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f. Estimated water usage and water efficiency plans; and
g. Waste management plan.
3. Proposed signage:
a. Must comply with City’s Sign Regulations for size, area and type of sign, no
exceptions allowed.
b. Internal illumination of signs is prohibited.
c. No portion of the cannabis plant may be used in any sign visible from the public
right-of-way.
d. Provide sign size, height, colors, and design of any proposed signage at the site.
e. Must include a sign inside the premises that states: “Smoking, ingesting, vaping,
eating or consuming cannabis or cannabis products on this site or in a public place
is prohibited.”
f. Must include a sign at each entrance of a retail storefront that prohibits persons
under 21 years of age from entering.
4. An analysis that demonstrates neighborhood compatibility and a plan for addressing
potential compatibility issues.
5. Applications for retail storefronts shall include a vicinity map showing at least one
thousand (1000) feet of surrounding area and the distances to the following uses: any pre-
school, elementary school, junior high school, high school, public park or playground and
three hundred (300) feet from a residentially zoned area. Distance shall be measured from
the nearest point of the property line of the site that contains the commercial cannabis
activity to the nearest point of the property line of the enumerated use using a direct
straight-line measurement.
6. Proof of ownership, option to purchase, (or lease agreement or option to lease with
landowner’s express written consent to the proposed commercial cannabis activity(ies) to
be conducted on the premises) or other proof of right to apply for the permit at the location;
7. A list of all other uses on the property.
E. Commercial Cannabis Development Standards
Each Cannabis business is required to meet the following standards:
1. Qualification through the Chapter 9.10, Cannabis Regulations, commercial cannabis
operator selection process to apply for a commercial cannabis operator permit. Submittal
of a use permit application to conduct the commercial cannabis business within the zones
specified for each type of commercial activity listed below.
2. Commercial cannabis facilities shall be allowed in areas demarcated with CAN overlay
zoning and as allowed in the underlying zone for each type of commercial cannabis
activity.
3. All commercial cannabis facilities shall be sited and/or operated in a manner that prevents
cannabis odors from being detected offsite. Commercial cannabis activities shall not create
offensive or excessive odors, dust, heat, noise, light, glare, smoke, traffic, or hazards due
to the use or storage of materials, processes, products or wastes, or other unreasonable
impacts to people of normal sensitivity living, working or lawfully present in the vicinity
of the commercial facility.
4. All commercial cannabis operations must be concealed from public view at all times and
there shall be no exterior evidence of cannabis or cannabis products occurring at the
property, visible with normal unaided vision from any public place, or the public right-of-
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way. Commercial manufacturing of cannabis or cannabis products shall be shielded to
confine light and glare to the interior of the structure.
5. All commercial cannabis facilities shall include adequate measures that address
enforcement priorities for commercial cannabis activities including restricting access to the
public and to minors and ensuring that cannabis and cannabis products are only obtained
from and supplied to other permitted licensed sources within the State and not distributed
out of State.
6. The use permit to be issued under this chapter shall include, but is not limited to, the
following conditions:
a. The obtaining and maintaining of the Commercial Cannabis Operator Permit and
appropriate state license.
b. Payment of all applicable current and future state and local taxes and all applicable
commercial cannabis fees and related penalties established by the City Council,
including but not limited to application, administrative review, inspection, etc.
c. The Commercial Cannabis Operator permit or a controlling interest in the permit
may not be assigned, transferred or bequeathed, by operation of law or otherwise,
unless permitted as described in Chapter 9.10, and the permit shall terminate
automatically on such event.
d. Any Commercial Cannabis Operator permit issued pursuant to this chapter and
Chapter 9.10 expires after one year, unless renewed.
e. Prohibition of on-site consumption of cannabis at: 1) at a commercial cannabis
business or commercial cannabis activity location; 2) any other business, club or
cooperative or event, regardless if open to the public or only to members; and 3 )
anywhere an entry or other fee is charged to attendees or the host or thing of value
or consideration is received or exchanged.
f. Prohibition of the possession, storage, sale, distribution or consumption of
alcoholic beverages on the premises, or the holding of license from the State
Division of Alcoholic Beverage Control for the sale of alcoholic beverages, or
operating a business that sells alcoholic beverages, on or adjacent to the commercial
cannabis activity site.
g. No cannabis products or cannabis accessories may be displayed in windows or
visible from the public right-of-way or from places accessible to the general public
h. Prohibition of minors on the premises, even if accompanied by a parent or guardian.
i. Outdoor storage of cannabis or cannabis products is prohibited.
F. Commercial Cultivation
1. Commercial cannabis cultivation. Commercial cannabis cultivation may be conditionally
permitted indoors only, subject to the requirements of this section and the obtaining and
maintaining of a Commercial Cannabis Operator’s Permit pursuant to Chapter 9.10,
Cannabis Regulations, of this code and appropriate state license, in the following zones:
a. Service Commercial (C-S)
b. Manufacturing (M)
c. Business Park (BP)
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2. A maximum of 70,000 square feet of cumulative canopy area (includes total canopy of
either horizontal or vertical growing situations) for cultivation and nurseries shall be
allowed for indoor commercial cannabis cultivation in the City within the zones identified
above, including Microbusinesses under Subsection L below.
3. Outdoor commercial cannabis cultivation, including but not limited to cultivation in
greenhouses, hoop structures, and by mixed light (part daylight/part artificial light), is
prohibited. All commercial cannabis cultivation shall be conducted only inside a fully
enclosed legally permitted structure that meets all applicable building and other codes.
4. Commercial cannabis cultivation conditional permits include the following:
a. Specialty Cultivator – A maximum of no more than 5,000 square feet of canopy
of indoor cultivation (either in horizontal or vertical growing situations) and
includes processing.
b. Small Cultivator – A maximum of no more than 10,000 square feet of canopy of
indoor cultivation (either in horizontal or vertical growing situations) and includes
processing.
c. Nursery-Cannabis – A maximum of no more than 10,000 square feet of indoor
propagation area (either in horizontal or vertical growing situations).
5. Development Standards:
1. Compliance with Subsection E. Commercial Cannabis Development Standards.
2. Canopy areas shall be easily identifiable for inspection and measurement. Each
unique area included in the total canopy calculation shall be separated by an
identifiable boundary such as an interior wall or by at least 10 feet of open space
(see “Canopy” definition in Chapter 17.100).
3. All indoor cannabis cultivation shall be designed to accomplish zero net energy use
from the start of the operation.
4. Pesticides and fertilizers shall be properly labeled, stored, and applied to avoid and
prevent contamination through erosion, leakage, or inadvertent damage from
rodents, pests, or wildlife.
G. Manufacturing
1. Manufacturing (non-volatile) Permissible. Non-volatile cannabis or cannabis products
manufacturing may be conditionally permitted indoors only, subject to the requirements of
this section and the obtaining and maintaining of a Commercial Cannabis Operator Permit
pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license, in the
following zones:
a. Service Commercial (C-S)
b. Manufacturing (M)
c. Business Park (BP)
2. Manufacturing (volatile) Prohibited. Cannabis or cannabis products manufacturing
involving volatile solvents, processes, compounds or substances is prohibited
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3. Development Standards:
1. Compliance with Subsection E. Commercial Cannabis Development Standards.
2. Outdoor manufacturing of cannabis or cannabis products is prohibited.
3. A complete description of all products used in the manufacturing process including
the cannabis supply chain, liquids, solvents, agents, and processes.
4. Storage protocol and hazard response plan.
5. Employee safety and training equipment plan, plus Materials Safety Data Sheet
requirements, if any.
H. Distribution
1. Commercial cannabis distribution may be conditionally permitted, subject to the
requirements of this section and the obtaining and maintaining of a Commercial Cannabis
Operator Permit pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state
license, in the following zones:
a. Service Commercial (C-S)
b. Manufacturing (M)
c. Business Park (BP)
2. Development Standards:
1. Compliance with Subsection E. Commercial Cannabis Development Standards.
I. Testing Laboratory
1. Commercial cannabis testing may be conditionally permitted, subject to the requirements
of this section and the obtaining and maintaining of a Commercial Cannabis Operator
Permit pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license, in
the following zones:
a. Service Commercial (C-S)
b. Manufacturing (M)
c. Business Park (BP)
d. Office (O)
2. Development Standards:
1. Compliance with Subsection E. Commercial Cannabis Development Standards.
2. The cannabis testing laboratory, as proposed, will comply with all the requirements
of the State for the testing of cannabis, including dual licensure and participation in
an authorized track and trace program.
3. The owners, investors, permittees, operators, and employees of the cannabis testing
laboratory will not be associated with, nor have any financial interest in, any other
form of commercial cannabis activity.
4. The cannabis testing laboratory is accredited by an appropriate accrediting agency
as approved by the State and further described in Health and Safety Code Section
5238 and as it may be amended.
5. The cannabis testing laboratory operating plan demonstrates proper protocols and
procedures for statistically valid sampling methods and accurate certification of
cannabis and cannabis products for potency, purity, pesticide residual levels, mold,
and other contaminants according to adopted industry standards.
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J. Retail - Storefront
1. Commercial cannabis storefront retail may be conditionally permitted, subject to the
requirements of this section and the obtaining and maintaining of a Commercial Cannabis
Operator Permit, and the appropriate state license, in the following zones:
a. Retail Commercial (C-R)
b. Service Commercial (C-S)
2. Development Standards:
1. Compliance with Subsection E. Commercial Cannabis Development Standards.
2. Only 3 retail storefronts, which must front arterial streets, will be allowed within
the City; Selection of the retail commercial cannabis operator will be selected from
qualified commercial cannabis operators as set forth in Chapter 9.10, Cannabis
Regulations. One of the retail storefronts shall have a Medicinal License and may
also have an Adult Use license.
3. Retail storefronts shall be located at least one thousand (1000) feet from any pre-
school, elementary school, junior high school, high school, public park or
playground and three hundred (300) feet from any residentially zoned area.
Distance shall be measured from the nearest point of the property line to the nearest
point of the property line of the enumerated use using a direct straight-line
measurement.
4. Retail storefronts must be separated from each other by at least 1,000 feet.
5. Hours of operation shall be limited between 9:00 am to 8:00 pm.
6. Must include a sign at each entrance of a retail storefront that prohibits persons
under 21 years of age from entering.
K. Retail - Non-Storefront (Delivery Services)
1. Commercial cannabis non-storefront retail may be conditionally permitted, subject to the
requirements of this section and the obtaining and maintaining of a Commercial Cannabis
Operator Permit pursuant to Chapter 9.10, Cannabis Regulations, and the appropriate state
license, in the following zones:
a. Service Commercial (C-S)
b. Manufacturing (M)
c. Business Park (BP)
2. Development Standards:
1. Compliance with Subsection E. Commercial Cannabis Development Standards.
2. Hours of delivery shall be limited between 6:00 am to 10:00 pm.
L. Microbusiness
1. Microbusinesses fall into two groups as described below and may be conditionally
permitted, subject to the requirements of this section and the obtaining and maintaining of
a Commercial Cannabis Operator Permit pursuant to Chapter 9.10, Cannabis Regulations,
and the appropriate state license, in the following zones.
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a. Microbusinesses with no more than 50% of the gross receipts being from
cultivation, distribution and manufacturing are allowed in the following zones:
1. Retail Commercial (C-R)
b. Microbusinesses with no more than 50% of the gross receipts being from storefront
retail sales are allowed in the following zones:
1. Manufacturing (M)
2. Business Park (BP)
c. Microbusinesses located in the Service Commercial (C-S) zone are not limited by
gross sales receipts from cultivation, distribution, manufacturing or retail sales.
2. Microbusinesses are subject to the 70,000 square feet of canopy cultivation city-wide
limitation (either in horizontal or vertical growing situations) and the limit of 3 retail
storefronts fronting arterial streets city-wide set forth in Subsection J above.
3. Development Standards:
1. Compliance with Subsection E. Commercial Cannabis Development Standards.
2. A maximum of 70,000 square feet of cumulative canopy for cultivation and
nurseries shall be allowed for indoor cultivation in the City within the allowed land
use zones.
3. All indoor cannabis cultivation shall be designed to accomplish zero net energy use
from the start of the operation.
4. Pesticides and fertilizers shall be properly labeled, stored, and applied to avoid and
prevent contamination through erosion, leakage, or inadvertent damage from
rodents, pests, or wildlife.
5. Only 3 retail storefronts, which must front arterial streets, will be allowed within
the City; Selection of the retail commercial cannabis operator will be selected from
qualified commercial cannabis operators as set forth in Chapter 9.10, Cannabis
Regulations. One of the retail storefronts shall have a Medicinal License and may
also have an Adult Use license.
6. Any Microbusiness with a retail storefront shall require a Planning Commission
Use Permit.
7. Retail storefronts shall be located at least one thousand (1000) feet from any pre-
school, elementary school, junior high school, high school, public park or
playground and three hundred (300) feet from any residentially zoned area.
Distance shall be measured from the nearest point of the property line to the nearest
point of the property line of the enumerated use using a direct straight-line
measurement.
8. Retail storefronts must be separated from each other by at least 1,000 feet.
9. Hours of retail shall be limited to between 9:00 am to 8:00 pm and delivery shall
be limited to between 6:00 am to 10:00 pm.
10. Must include a sign at each entrance of a retail storefront that prohibits persons
under 21 years of age from entering.
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EXHIBIT C
Table 9: Uses Allowed by Zone
Land Use
Permit Required by Zoning District
AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-D C-R C-T C-S M BP
Cannabis Activity
Specialty Cultivator D D D
Small Cultivator D D D
Nursery D D D
Manufacturing I D D D
Distributor D D D
Microbusiness PC* D/PC* D/PC* D/PC*
Testing PC AA AA AA
Retailer (delivery) D D D
Retailer (storefront) PC PC
Key: A = Allowed AA = Administrative Approval D = Director's Use Permit
PC = Planning Commission Use Permit Approval Required
* See section 17.99.050 (L) of the Zoning Regulations for specific requirements per zone. A Planning Commission
use permit is only required if the Microbusiness includes a retail storefront as part of the business.
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Chapter 17.100: Definitions
Cannabis. “Cannabis” or “cannabis product” means all parts of the plant Cannabis sativa
Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof, the
resin, whether crude or purified, extracted from any part of the plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis”
also means the separated resin, whether crude or purified, obtained from cannabis plants.
“Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or
cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture,
or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the
sterilized seed of the plant which is incapable of germination. For the purpose of this division,
“cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and
Safety Code.
Cannabis accessories. Any equipment, products or materials of any kind which are used, intended
for use, or designed for use in planting, propagating, cultivating, growing, harvesting,
manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing,
packaging, repackaging, storing, smoking, vaporizing, or containing marijuana, or for ingesting,
inhaling, or otherwise introducing cannabis or cannabis products into the human body.
Cannabis Activity. Any activity involving cannabis or cannabis products, except for possession
or use, which are regulated under state law. Includes commercial cannabis activity as well as
personal non-commercial cultivation, processing, storing, labeling, or delivery for personal adult
recreational or medicinal use.
Canopy. “Canopy” means all of the following:
1. The totality of an individual plant's aboveground parts, including branches, stems, leaves,
and flowering structures;
2. The designated area(s) at a licensed premise that will contain mature plants at any point in
time;
3. Canopy shall be calculated in square feet and measured using clearly identifiable
boundaries of all area(s) that will contain mature plants at any point in time, including all
the space(s) within the boundaries;
4. Canopy may be noncontiguous, but each unique area included in the total canopy
calculation shall be separated by an identifiable boundary such as an interior wall or by at
least 10 feet of open space; and
5. If mature plants are being cultivated using a shelving or stacking system, the surface area
of each level shall be included in the total canopy calculation.
Commercial Cannabis Activity. The cultivation, possession, manufacture, distribution,
processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of
cannabis and cannabis products as provided for in this division.
Concentrated Cannabis. The separated resin, whether crude or purified, obtained from cannabis.
Cultivation. Any activity involving the planting, growing, harvesting, drying, curing, grading, or
trimming of cannabis.
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Cultivation, Indoor. Any activity involving the planting, growing, harvesting, drying, curing,
grading, or trimming of cannabis enclos ed within a structure using artificial lighting. These
structures do not have any part open to the outside.
Cultivation, Outdoor. Any activity involving the planting, growing, harvesting, drying, curing,
grading, or trimming of cannabis not within an enclosed structure such as open fields, greenhouses,
hoop structures, etc.
Cultivation, Personal. Cultivation of cannabis conducted by an individual strictly for that
individual’s personal use, possession, processing, transporting, or giving away without any
compensation whatsoever in accordance with this Code and State law, including but not limited to
Health and Safety Code sections 11362.1 and 11362.2, as may be amended. Personal cultivation
also means and includes cultivation of medical cannabis conducted by a qualified patient
exclusively for his or her personal medical use, and cultivation conducted by a primary caregiver
for the personal medical purposes of no more than five specified qualified patients for whom he or
she is the primary caregiver, in accordance with State law, including Health and Safety Code
sections 11362.7 and 11362.765, as may be amended. Except as herein defined, personal
cultivation does not include, and shall not authorize, any cultivation conducted as part of a business
or commercial activity, including cultivation for compensation or retail or wholesale sales of
cannabis.
Delivery. The commercial transfer of cannabis or cannabis products to a customer. “Delivery”
also includes the use by a retailer of any technology platform owned and controlled by the retailer.
Distribution. The procurement, sale, and transport of cannabis and cannabis products between
licensees.
Edible Product. Cannabis product that is intended to be used, in whole or in part, for human
consumption, including, but not limited to, chewing gum, but excluding products set forth in
Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible
cannabis product is not considered food, as defined by Section 109935 of the Health and Safety
Code, or a drug, as defined by Section 109925 of the Health and Safety Code
Greenhouse. A fully enclosed permanent or temporary structure that is clad in transparent material
that may contain climate control, such as heating and/or ventilation capabilities, and/or
supplemental artificial lighting, and/or use of both natural and artificial lighting (mixed light) for
cultivation. Cannabis cultivation within a greenhouse is considered outdoor cultivation.
Hoop Structure. A readily removable plastic or fabric covered hoop structure without in-ground
footings or foundations. Cannabis cultivation within hoop structures is considered outdoor
cultivation.
Live Plants. Living cannabis flowers and plants, including seeds, immature plants, and vegetative
stage plants
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EXHIBIT D
Manufacturing (Volatile). The production, preparation, propagation, or compounding of
cannabis or cannabis products either directly or indirectly or by extraction methods, or
independently by means of chemical synthesis or by a combination of extraction and chemical
synthesis, using volatile organic compounds, at a fixed location, that packages or repackages
cannabis or cannabis products, or labels or relabels its containers.
Manufacturing (Non-volatile). The production, preparation, propagation, or compounding of
cannabis or cannabis products either directly or indirectly or by extraction methods, or
independently by means of chemical synthesis or by a combination of extraction and chemical
synthesis, using non-volatile organic or inorganic compounds (see Cannabis Manufacturing
(Volatile)), at a fixed location, that packages or repackages cannabis or cannabis products, or labels
or relabels its containers.
Medicinal Cannabis or Medicinal Cannabis Product. Cannabis or a cannabis product,
respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996
(Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal
cannabis patient in California who possesses a physician’s recommendation.
Microbusiness. Allows a single business to integrate cultivation, manufacturing, distribution and
retail sales.
Mixed-light Cultivation. Cultivation of cannabis using a combination of natural and supplemental
artificial lighting (e.g. a greenhouse using natural light during the day and artificial light during
the night). Mixed-light cultivation is not allowed.
Nursery (Cannabis). A site that produces only clones, immature plants, seeds, or other
agricultural products used specifically for the planting, propagation, and cultivation of cannabis.
Cultivation as a cannabis nursery shall be indoor only (see Cultivation, Indoor).
Product. See “Cannabis” and “Edible Product” and “Topical Product”.
Private residence. A house, an apartment unit, a mobile home, or other similar dwelling.
Sale/Sell/To Sell Any transaction whereby, for any consideration, title to cannabis is transferred
from one person to another, and includes the delivery of cannabis or cannabis products pursuant
to an order placed for the purchase of the same and soliciting or receiving an order for the same,
but does not include the return of cannabis or cannabis products by a licensee to the licensee from
whom such cannabis or cannabis product was purchased.
Retail (Cannabis). Includes storefront and non-storefront (delivery) sale of cannabis and cannabis
products.
Testing Laboratory. A facility, entity, or site in the State of California that offers or performs
tests of cannabis or cannabis products and that is both of the following: 1) Accredited by an
accrediting body that is independent from all other persons involved in the cannabis industry in
the State, and 2) Licensed by the bureau.
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EXHIBIT D
Topical Product. Cannabis product that is intended to be used for external use. A topical cannabis
product is not considered a drug as defined by Chapter 109925 of the California Health and Safety
Code.
Marijuana. See “Cannabis.”
Medical Marijuana. See “Medicinal Cannabis.”
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ORDINANCE NO. 1633 (2017 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, CODIFYING AND REAFFIRMING CURRENT
CITY LAW, POLICY AND PRACTICE BY EXPRESSLY PROHIBITING
ALL COMMERCIAL AND INDUSTRIAL RECREATIONAL AND
MEDICAL MARIJUANA USES, ACTIVITIES AND OPERATIONS AND
LIMITING OUTDOOR CULTIVATION OF MEDICAL AND
RECREATIONAL MARIJUANA WITHIN THE CITY
WHEREAS, in 1996, California voters approved Proposition 215, entitled "The
Compassionate Use Act of 1996", providing a defense to state criminal prosecution for specified
medical marijuana use, and the Medical Marijuana Program Act established a voluntary
participation, State -authorized medical marijuana identification card and registry database for
verification of qualified patients and their primary caregivers; and
WHEREAS, in 2015, the State Legislature approved the Medical Marijuana Regulation
and Safety Act ("MMRSA"), which created an extensive statewide regulatory and licensing system
for the cultivation, manufacture, testing, dispensing, distribution and transport of medical
marijuana. MMRSA exempted from its regulatory and licensing system, certain medical marijuana
cultivation by individual qualified patients and primary caregivers with no more than five qualified
patients. In 2016, the State Legislature updated MMRSA by approving AB 21 and SB 837 to
address issues not previously addressed in prior legislation and changed the name of MMRSA to
the Medical Cannabis Regulation and Safety Act (MCRSA); and
WHEREAS, under MCRSA, the State will not issue licenses to operators in jurisdictions
that prohibit medical marijuana uses and activities, either expressly or under principles of
permissive zoning; and
WHEREAS, the City historically has relied on permissive zoning principles to decline
permitting of marijuana businesses and uses within the City, and reaffirmed that position by
adoption of Resolution 10683 on January 14, 2016; and
WHEREAS, on November 8, 2016, California voters passed Proposition 64, entitled "The
Control, Regulate, and Tax Adult Use of Marijuana Act" ("AUMA"). AUMA legalized under
California law non-medicinal/recreational marijuana use for those 21 years of age and over, and
created a comprehensive regulatory, licensing and tax system for the non-medical marijuana
industry, including 19 different types of licenses for cultivation, manufacturing, testing, retailer,
distributor and microbusiness; and
WHEREAS, AUMA allows local governments to ban recreational marijuana businesses
entirely, or regulate such businesses, and to reasonably regulate cultivation through zoning and
other public health and safety laws, including prohibiting outdoor cultivation outright, but AUMA
does require local governments to allow limited indoor cultivation in private residences; and
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Ordinance No. 1633 (2017 Series) Page 2
WHEREAS, despite the changes in California law, the Federal Controlled Substances Act
still makes it illegal under federal law for any person to cultivate, manufacture, distribute or
dispense, or possess with intent to manufacture, distribute or dispense, marijuana, and the future
of federal government enforcement actions under a new Presidential administration is uncertain
in states that have legalized the recreational use of marijuana; and
WHEREAS, it will take a substantial amount of time: to conduct public outreach regarding
the direction the City should take regarding both medical and recreational marijuana businesses;
to draft comprehensive zoning and other regulations relating to commercial recreational and/or
medical marijuana activities within the City; to determine whether to pursue certain taxes related
to commercial recreational marijuana; and to analyze the potential impacts and health and safety
issues relating to such businesses, including, but not limited to, environmental, water, indoor
electrical fire hazards, mold, odors and criminal activity; and
WHEREAS, AUMA does not contain the protective language relating to permissive
zoning that MCRSA does, and, in the absence of an express ordinance either prohibiting or
regulating non-medical marijuana business or activities, the City could become subject to State
licensing of marijuana businesses and activities within its jurisdiction and/or may not be able
preclude the State from issuing licenses to marijuana businesses anywhere in the City; and
WHEREAS, it is unclear to the full extent to which AUMA and MCRSA may conflict,
how state regulatory provisions ultimately may reconcile the two licensing structures, and whether
the provisions of AUMA will control over MCRSA; and
WHEREAS, the City has had odor complaints relating to outdoor cultivation of marijuana,
resulting in the addition of Chapter 8.22 to the Municipal Code, prohibiting persistent offensive
odors from emanating across property or parcel lines; and
WHEREAS, the City currently prohibits smoking and controls secondhand smoke,
including marijuana smoke and vapors, in public and other places under Chapter 8.16, of its
Municipal Code; and
WHEREAS, the City Council wishes to preserve its ability to continue its current
licensing, permitting, regulation and enforcement practices regarding marijuana uses within its
boundaries in order to receive and consider council direction and public outreach to define the
appropriate nature and scope of regulations.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The foregoing recitals are adopted by the City Council as findings in support
of the Ordinance.
SECTION 2. This Ordinance constitutes an exercise of the City's police powers under the
California Constitution and codifies existing law, policy and practice in the City of San Luis
Obispo prohibiting marijuana uses and activities.
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SECTION 3.
Chapter 9.10 is added to the San Luis Obispo Municipal Code, to read as follows:
Chapter 9.10 MARIJUANA REGULATION
9.07.010 Purpose and Intent
A. The purpose and intent of this chapter is to maintain the status quo while the city
conducts public outreach by limiting the outdoor cultivation, and prohibiting
manufacturing, processing, laboratory testing, labeling, storing and wholesale and
retail distribution and sale of recreational and medical marijuana to protect the health,
safety and welfare of the city consistent with state law.
B. This chapter is not intended to, nor shall it be construed as, prohibiting or interfering
with any right, defense or immunity afforded to qualified patients or their caregivers
relating to medical marijuana under the Compassionate Use Act of 1996, the Medical
Marijuana Program Act, the Medical Cannabis Regulatory and Safety Act and other
applicable California law.
C. This chapter is not intended to, and shall not be construed as, prohibiting or interfering
with any right, defense or immunity of any individual relating to the recreational use
or possession or indoor cultivation of marijuana as permitted by the Control,
Regulation and Tax Adult Use of Marijuana Act; provided, nothing in this subsection
is to be construed to permit actions violating or not permitted by other provisions of
the Municipal Code, including, but not limited to, Chapter 5.01 Business License
Program, Chapter 8.16 Smoking Prohibited and Secondhand Smoke Control, Chapter
8.22 Offensive Odors and Chapter 17.22 Use Regulations.
9.10.020 Limitation of Outdoor Cultivation of Marijuana
No person shall cultivate, plant, grow, maintain or store more than six marijuana plants
outdoors in any location within the City, whether or not located in a greenhouse or other
structure designed or used for such activities.
9.10.030 Prohibition of Marijuana -Related Businesses
A. Except as otherwise specifically required by California law, any and all commercial or
industrial recreational and medical marijuana/cannabis-related uses, activities,
businesses, or operations, are prohibited and unlawful within the City of San Luis
Obispo.
B. This prohibition applies to both for profit and nonprofit commercial and industrial uses,
activities, businesses, operations, even if a State license under the Control, Regulate
and Tax Adult Use of Marijuana Act or the Medical Cannabis Regulation and Safety
Act is not required.
C. This prohibition includes, but is not limited to, commercial and/or industrial:
cultivation (both indoor and outdoor); manufacturing; processing; laboratory testing;
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wholesale or retail distribution, delivery and sale; labeling; storage; or permitting of
smoking/vaporizing/ingesting on any business premises, of marijuana/cannabis,
marijuana/cannabis products and all marijuana/cannabis derivatives for any purpose.
9.10.40 Violation and Penalties
A. Misdemeanor. Any violation of the provisions of this chapter shall be a misdemeanor;
provided, that where the city attorney determines that such action would be in the interest
of justice, he/she may specify in the accusatory pleading that the offense shall be an
infraction.
B. Infraction Violation. Where the city attorney determines that, in the interest of justice,
a violation of this chapter is an infraction, such infraction is punishable by a fine not
exceeding one hundred dollars for a first violation, a fine not exceeding two hundred dollars
for a second violation of the same provision within one year, and a fine not exceeding five
hundred dollars for each additional infraction violation of the same provision within one
year.
C. The fine amounts set forth above may be modified, from time to time, by city council
resolution. In no event shall such fine amounts exceed the amounts authorized by state law.
D. Each person committing, causing, or maintaining a violation of this chapter or failing to
comply with the requirements set forth herein shall be deemed guilty of a separate offense
for each and every day during any portion of which any violation of any provision of this
chapter is committed, continued, maintained, or permitted by such person and shall be
punishable accordingly.
E. The violation of any provision of this chapter shall be and is hereby declared to be a
public nuisance and contrary to the public interest. Any public nuisance under this chapter
may, at the city's discretion, be abated by the city by civil process by means of a restraining
order, preliminary or permanent injunction or in any manner provided by law for the
abatement of such nuisance. The city shall also be entitled to recover its full reasonable
costs of abatement. The prevailing party in any proceeding associated with the abatement
of a public nuisance shall be entitled to recovery of attorneys' fees incurred in any such
proceeding if the city has elected at the initiation of that individual action or proceeding to
seek recovery of its own attorneys' fees.
F. In lieu of issuing a criminal citation, the city may issue an administrative citation to any
person responsible for committing, causing or maintaining a violation of this chapter.
Nothing in this section shall preclude the city from also issuing a citation upon the
occurrence of the same offense on a separate day.
G. The remedies set forth in this chapter are cumulative and additional to any and all other
legal remedies available whether set forth elsewhere in the San Luis Obispo Municipal
Code, or in state or federal laws, regulations, or case law
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SECTION 4 The adoption of this Ordinance maintains the status quo and does not make
any change in the current or historic law, policy or practice of the City, and the whole of such
action is not an activity which may cause direct or reasonably foreseeable indirect physical change
in the environment under Public Resources Code Section 21065 or California Environmental
Quality Act ("CEQA") Guidelines Section 15378 (a) and, therefore, is exempt from, and not a
project subject to, environmental review. Even if the adoption of this Ordinance codifying existing
law is determined to constitute approval of a project under CEQA, and even if the project is not
subject to any statutory or categorical exceptions, as a matter of common sense, it can be seen with
certainty that there is no possibility that the activity in question, the adoption of the Ordinance
codifying existing law, may have a significant effect on the environment under CEQA guidelines
section 15061 (b) (3).
SECTION 5. This Ordinance shall not be interpreted in any manner to conflict with
controlling provisions of state or federal law, including, without limitation, the Constitution of the
State of California. If any section, subsection or clause of this ordinance shall be deemed to be
unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and
clauses shall not be affected thereby.
SECTION 6. 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 14th day of March 2017, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 4th day of April 2017, on the following roll call vote:
AYES: Council Members Christianson, Gomez and Pease,
Vice Mayor Rivoire and Mayor Harmon
NOES: None
ABSENT: None
ATTEST:
Zez4a Z Y
Carrie Gallagher
City Clerk
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APPROVED AS TO FORM:
f,
j
J. Christine Dietrick
4 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 ofA.tL , 2017.
Carrie Gallagher
City Clerk
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0 250 500 750 1,000Feet
Buffers
300' Residential Zone
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Higuera Commerce
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Packet Page 260
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300' Residential Zone
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Packet Page 261
Item 15
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300' Residential Zone
Overlay Boundary
South Broad
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Packet Page 262
Item 15
MCMILLAN AVEMORRISON ST
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0 125 250 375 500Feet
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300' Residential Zone
Overlay Boundary
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Packet Page 263
Item 15
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Packet Page 264
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