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06-05-2018 Agenda Packet - Copy
Tuesday, June 5, 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 Harmo n PUBLIC COMMENT FOR AGENDA ITEMS ONLY PUBLIC HEARING AND BUSINESS ITEMS 1.NOVEMBER 6, 2018 GENERAL MUNICIPAL ELECTION (JOHNSON / DIETRICK / PURRINGTON – 60 MINUTES) Recommendation: 1.Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, calling for the holding of a General Municipal Election to be held on Tuesday, November 6, 2018, for the election of certain Officers as required by the provisions of the Charter, adopting regulations for Candidate Statements, for the submission to the voters of a question whether to establish a Cannabis Business Tax and requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election with the Statewide General Election to be held on November 6, 2018, pursuant to § 10403 of the Elections Code;” and 2.Adopt two resolut ions entitled “A Resolution of the City Council of the City of San Luis Obispo, California, setting priorities for filing a written argument regarding a City measure and directing the City Attorney to prepare an impartial analysis,” and “A Resolution of the City Council of the City of San Luis Obispo, California, providing for the filing of rebuttal arguments for City measures submitted at municipal elections” 3.Confirm the setting of a Special City Council Meeting on Monday, December 3, 2018 at three o’clock to adopt a Resolution certifying the results of the election and to administer oaths of office to the newly elected Mayor and Council Members; and San Luis Obispo City Council Agenda June 5, 2018 Page 2 4.Direct staff to prepare information about the proposed Cannabis Business Tax as outlined in this report as needed. 2.BOND DOCUMENTS APPROVING THE SALE OF THE WATER REVENUE REFUNDING BONDS, SERIES 2018 (JOHNSON / ELKE – 10 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council o f the City of San Luis Obispo, California authorizing the issuance, sale and delivery of City of San Luis Obispo, California water revenue refunding bonds; the execution and delivery of an indenture, a bond purchase agreement, a continuing disclosure certificate; the preparation and distribution of a preliminary and a final official statement relating to the aforesaid bonds; and certain other actions in connection with such transactions.” ADJOURNED TO THE REGULAR MEETING OF JUNE 5, 2018 TO BEING AT 6:00 P.M. IN THE COUNCIL CHAMBER San Luis Obispo City Council Agenda June 5, 2018 Page 3 Tuesday, June 5, 2018 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 Andy Pease PRESENTATIONS 3.PROCLAMATION - NET ZERO ENERGY DAY (HARMON – 10 MINUTES) Proclamation - Net Zero Energy Day 4.MAYOR'S AWARDS FOR COMMUNITY SERVICE (HARMON – 10 MINUTES) Mayor's awards for community service. 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 C lerk 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 pose d 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 t ime. 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 Co nsent Agenda within the three minute time limit. San Luis Obispo City Council Agenda June 5, 2018 Page 4 5.WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation: Waive reading of all resolutions and ordinances as appropriate. 6.MINUTES OF MAY 15, 2018 (PURRINGTON) Approve the Minutes of the City Council meeting of May 15, 2018. 7.RESOLUTION AUTHORIZING THE COLLECTION OF DELINQUENT CODE ENFORCEMENT FINES (CODRON / COCINA) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the San Luis Obispo County Auditor to assess amounts due on delinquent administrative fines as special assessments against the properties pursuant to California Government Code sections 38773.1(a), 38773.5, and 53069.4(a).” 8.COLLECTION OF DELINQUENT SOLID WASTE COLLECTION AND DISPOSAL ACCOUNTS (MATTINGLY / FLOYD / BOERMAN) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the San Luis O bispo County Assessor to assess amounts due on delinquent solid waste collection and disposal accounts as liens against the properties pursuant to California Government code section 25828, et seq.” 9.MODIFICATION OF CORPORATION YARD WELL CLOSURE TIMELIN E (MATTINGLY / FLOYD / BOERMAN) Recommendation: 1.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s Permit Fee and User Regulations for the use of the Corporation Yard non-potable well.” 2.Authorize the City Manager to extend public access to the corporation yard well until July 1, 2019, if continued progress towards an alternative water source by San Luis Obispo County can be demonstrated, at an additional fee of $679.50. San Luis Obispo City Council Agenda June 5, 2018 Page 5 10.REVIEW OF THE PUBLIC ART DESIGNS AND LOCATIONS PROPOSED FOR THE 2018 UTILITY BOX ART PROJECT TO PAINT CITY-OWNED UTILITY BOXES (STANWYCK) Recommendation: As reviewed and recommended by the Parks and Recreation Commission and Architectural Review Commission, approve the proposed artwork designs and traffic signal box locations for the 2018 Utility Box Art project. 11.RESOLUTION AUTHORIZING THE COUNTY’S COLLECTION OF FIRE AND LIFE SAFETY INSPECTION FEES (MAGGIO) Recommendation: Adopt a resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the San Luis Obispo County Auditor to collect fees for 2018-19 Fire and Life Safety Inspections of multi-dwelling properties containing three or more dwelling u nits on the secured property tax roll pursuant to California Government Code section 54988, et seq.” 12.LOS OSOS VALLEY ROAD / U.S. 101 INTERCHANGE LANDSCAPING, SPECIFICATION NO. 91435 (GRIGSBY / KLOEPPER) Recommendation: 1.Approve the project plans and specifications for the Los Osos Valley Road / U.S. 101 Interchange Landscaping Project, Specification Number 91435; 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 $400,000. 13.ADOPTION OF AN ORDINANCE AMENDING CHAPTER 1.24 (ADMINISTRATIVE CODE ENFORCEMENT PROCEDURES) OF TITLE 1 TO THE SAN LUIS OBISPO MUNICIPAL CODE (CODRON / COCINA) Recommendation: Adopt Ordinance No. 1648 (2018 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 1.24 (Administrative Code Enforcement Procedures) of Title 1 to the San Luis Obispo Municipal Code,” amending late payment fee assessments, adding clarification concerning repeat violations over multiple properties, and recording notice of violations on property titles. San Luis Obispo City Council Agenda June 5, 2018 Page 6 14.SEWER-LINING 2016, SPECIFICATION NO. 91421 (GRIGSBY / ESPARZA) Recommendation: 1.Approve the Plans and Specifications for Sewer Lining 2016, Specification No. 91421; and 2.Authorize staff to advertise for bids and authorize the City Manager to award the construction contract if the lowest responsible bid is within the Public Disclosed Funding Amount of $606,500. 15.FIRE MUTUAL AID REIMBURSEMENT RESOLUTION AMENDMENT (OLSON / BLATTLER) Recommendation: Adopt a resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, identifying the terms and conditions for Fire Department response away from their official duty station and assigned to an emergency incident.” 16.POLICE PATROL VEHICLE REPLACEMENTS (GRIGSBY / SHUCK) Recommendation: 1.Approve the replacement of one Police Patrol Utility vehicle that was damaged beyond repair under project specification no. 91671. 2.Appropriate $50,000 from the Fleet Contingency Fund for replacement of the vehicle in recommendation No. 1. 3.Authorize the Finance Director to transfer $4,000 from project specification no. 90478 to specification no. 91590 and $4,000 from project specification no. 91472 to specification no. 91591; and 4.Authorize the Finance Director to execute a purchase order to Perry Ford of San Luis Obispo in the amount of $154,449.93 for the purchase of three 2018 For d Utility Police Interceptors, including third party Police equipment installation by Emergency Vehicle Specialists of San Luis Obispo; and 5.Authorize the surplus designation of Fleet Asset No. 1307, 1308, and 1511 by sale, auction, trade-in or other method in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Section 405 -L and 480. San Luis Obispo City Council Agenda June 5, 2018 Page 7 17.UTILITY BILLING DEPOSITS (MATTINGLY / ELKE) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Co uncil of the City of San Luis Obispo, California rescinding and replacing Resolution No. 7080 (1992 series) to establish a reconnection fee and refundable deposit requirements.” 18.ADOPT A RESOLUTION AMENDING THE EXISTING PLEDGE TO FOLLOW BEST PRACTICES OF CIVILITY AND CIVIL DISCOURSE (HERMANN / PURRINGTON / GOODWIN) Recommendation: Adopt a Resolution entitled, A Resolution of the City Council of the City of San Luis Obispo, California, amending the existing pledge to follow best practices of civility a nd civil discourse in all of its meetings.” PUBLIC HEARING AND BUSINESS ITEMS 19.2018-19 SUPPLEMENTAL BUDGET (JOHNSON / STANWYCK / FERREIRA – 180 MINUTES) Recommendation: Receive and discuss the 2018-19 Budget Supplement. San Luis Obispo City Council Agenda June 5, 2018 Page 8 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 dir ect staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURNMENT The next regular City Council Meeting will be held on June 19, 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 meet ings 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: 6/5/2018 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Teresa Purrington, City Clerk SUBJECT: NOVEMBER 6, 2018 GENERAL MUNICIPAL ELECTION RECOMMENDATION 1.Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, calling for the holding of a General Municipal Election to be held on Tuesday, November 6, 2018, for the election of certain Officers as required by the provisions of the Charter, adopting regulations for Candidate Statements, for the submission to the voters of a question whether to establish a Cannabis Business Tax and requesting the Board Of Supervisors of the County Of San Luis Obispo to consolidate a General Municipal Election with the Statewide General Election to be held on November 6, 2018, pursuant to §10403 of the Elections Code.” (Attachment A); and 2.Adopt resolutions (Attachments B & C) directing the City Attorney to prepare the impartial analysis for the ballot measure, setting priorities for filing written arguments, providing fo r the filing of rebuttal arguments; and 3.Confirm the setting of a Special City Council Meeting on Monday, December 3, 2018 at three o’clock to adopt a Resolution certifying the results of the election and to administer oaths of office to the newly elected Mayor and Council Members; and 4.Direct staff to prepare information about the proposed Cannabis Business Tax as outlined in this report as needed. DISCUSSION The City Council is being requested to adopt a Resolution (Attachment A) which will: 1.Call a General Municipal Election to be held on November 6, 2018 for the election of two (2) members of Council and the Mayor; 2.Set regulations for candidate statements; 3.Submit to the voters a question whether to establish a Cannabis Business Tax; and 4.Request consolidation of the election with the County and authorize the County Clerk/Elections Department to canvass the returns and provide other services relating to the conduct of the election. Pursuant to Section 404 of the City Charter, the Council is also being asked to confirm the scheduling of a special meeting on Monday, December 3, 2018 at three o’clock for the purpose of seating the newly elected Mayor and City Council Members. Packet Pg. 9 Item 1 Calling the Election. Pursuant to Section 302 of the City Charter, the Cit y’s General Municipal Election to fill elective offices shall be held on the first Tuesday, after the first Monday, in November of even-numbered years. November 6, 2018 is when the General Municipal Election is to be held. California Election Code establishes procedures and requirements for conducting a General Municipal Election. In addition, State Elections Code §13307 contains provisions related to the printing, distribution and estimated costs of candidates' statements in the voter information guide. Candidate Statements. The resolution calling the election authorizes the City Clerk and the County Clerk/Elections Department to conduct a consolidated election and includes provisions related to candidates' statements. The resolution allows for the filing of a candidate's statement of no more than 200 words and specifies that candidates pay the costs for including the statements in the voter information guide. The estimate for printing a candidate's statement in the voter information guide is approximately $500 per statement. Requesting Consolidation. The resolution requesting consolidation allows the City to combine its election with the statewide election and avoid duplication of printing and mailing of sample ballots, computer tabulation, precinct workers and canvassing results. Other requirements, including issuing and accepting nomination papers and other legal advertising as is required by the City's Election Campaign Regulations will be performed by the City Clerk. All filings, including Candidates' Statements of Qualifications, Statements of Economic Interests, and Campaign Disclosure Statements, will be administered through the City Clerk's Office. Ballot Measure for Cannabis Business Tax Ordinance. On May 15, 2018, the City Council adopted an ordinance 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 applying to personal cannabis cu ltivation, cannabis business operators and permitted cannabis business activities in the City. The ordinance also includes zoning amendments, to be codified as Chapter 17.99 of the Municipal Code, providing for land use regulation and permitting of cannab is uses. The Council also directed staff to return with additional implementing measures, including the criteria for the ranking of cannabis business operator applications, an overlay zone, a fee schedule for applications and annual licenses, and more info rmation about a cannabis revenue measure. The ordinance includes a provision that no land use, operator permit, or commercial cannabis business operations shall be allowed in the City unless and until the voters approve a cannabis revenue measure. Also, on May 15, 2018 meeting, the City Council gave staff direction to move forward and prepare ballot language and the ordinance (Attachment D) to create SLOMC Chapter 5.10 which would establish a Cannabis Business Tax. The revised ballot question is as follow s and includes changes discussed at the meeting and as recommended by staff and consultants: Packet Pg. 10 Item 1 “Shall the measure to maintain and improve essential City services, including without limitation: police and fire services public safety; senior, youth and park services; programs to retain and attract local jobs businesses and address homelessness, by establishing imposing a cannabis business tax up to 10% of gross receipts for retail and businesses and up to $10.00 per canopy square foot for cultivation (adjustable annually for inflation), raising approximately $1,500,000 annually, until ended by voters, with all funds used locally, be adopted.” Priorities for Written Arguments Elections Code Section 9282 sets priorities for filing written arguments and states: (b) For measures placed on the ballot by the legislative body, the legislative body, or any member or members of the legislative body authorized by that body, or any individual voter who is eligible to vote on the measure, or bona fide association of cit izens, or any combination of voters and associations, may file a written argument for or against any city measure. Based on dates established by State election law, primary ballot arguments would have to be submitted to the City Clerk no later than 5:00 p.m. on Tuesday, June 19, 2018. The Elections Code establishes a 300-word limit for primary arguments and also establishes priorities for selecting arguments. It is recommended that the Council appoint an ad hoc subcommittee consisting of two of its members to prepare and submit ballot arguments and rebuttal arguments, if warranted. (Note: public funds may not be used for these purposes. These committee members will meet on their own time and not utilize City resources.) The Elections Code allows the City Council to adopt provisions to permit rebuttal arguments to be filed. These provisions must be adopted at the same meeting at which the election is called. The deadline for submitting rebuttal arguments is dictated by State election law and would be 5:00 p.m. on June 29, 2018. Public Review Period and Deadlines Election Code Section 9295 provides that the Election Official shall allow a 10 -calendar day public examination period immediately following the filing deadline for submission of specified official election materials (i.e., arguments, rebuttals, analys is). During that 10-calendar day period, any voter of the City or the Election Official may seek court action to require any or all such materials be amended or deleted. Packet Pg. 11 Item 1 Deadlines for Filing the Impartial Analysis and Arguments The following deadlines have been established by the City Clerk for the submission of the impartial analysis, primary arguments in favor and against, and rebuttal arguments: June 19, 2018 at 5:00 p.m. - Last day to file Impartial Analysis and Primary Arguments for or Against the Measure June 29, 2014 at 5:00 p.m. - Last day to file Rebuttal Arguments for or Against a Measure June 29, 2018 – July 9, 2018 - 10-day public examination period for the Impartial Analysis and Primary Arguments for or Against a Measure Education and Outreach If the Council places this measure on the ballot, staff is available to conduct education and outreach as needed consistent with what is allowed by law. This may include publishing materials such as answers to frequently asked questions, plac ing informational content on the City’s website, and respond ing to requests for presentations and additional information. Should the Council wish staff to approach education and outreach in a different manner, further direction should be provided. 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. 15 278. FISCAL IMPACT The cost of the election will be influenced by the number of candidates filing for elected office. It is estimated that the election will cost approximately $50,000. There are budgeted funds in the City Clerk’s Office budget to pay those costs. Attachments: a - Draft Resolution Calling for Election, Placing Ballot Measure and Consolidation b - Draft Resolution Arguments and Impartial Analysis c - Draft Resolution Authorizing Rebuttal Arguments d - Exhibit A to Attachment A - Cannabis Business Tax Ordinance Packet Pg. 12 Item 1 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018, FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE CHARTER, ADOPTING REGULATIONS FOR CANDIDATE STATEMENTS, FOR THE SUBMISSION TO THE VOTERS OF A QUESTION WHETHER TO ESTABLISH A CANNABIS BUSINESS TAX AND REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN LUIS OBISPO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON NOVEMBER 6, 2018, PURSUANT TO § 10403 OF THE ELECTIONS CODE. WHEREAS, under the provisions of the Charter, a General Municipal Election shall be held on November 6,2018, for the election of Municipal Officers; and WHEREAS, it is desirable that the general municipal election be consolidated with the Statewide General election to be held on the same date and that , within the city, the precincts, polling places and election officers of the two elections be the same, and that the county election department of the County of San Luis Obispo canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election; WHEREAS, Sections 37101 and 37100.5 of the California Government Code authorize the City to levy a license tax, for revenue purposes, upon business transacted in the City; and WHEREAS, as a result of recent voter-approved changes to state law, there has been strong interest by cannabis businesses to open in the City; and WHEREAS, cannabis businesses are likely to create demands upon City services, and the City does not currently impose any taxes upon cannabis businesses, aside from generally applicable municipal taxes; WHEREAS, the City Council desires to seek to impose a tax upon cannabis businesses, in-lieu of the City’s business tax set forth in Chapter 3.01 of the Municipal Code, to be known as the “Cannabis Business Tax”; and WHEREAS, the Cannabis Business Tax cannot be imposed without voter approval; and WHEREAS, the City Council desires to submit a Cannabis Business Tax measure to the voters of the City at the General Municipal Election to be held on Tuesday, November 6, 2018, and to be consolidated with any other election to be held on that date; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo, as follows: Packet Pg. 13 Item 1 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 1. Recitals. The City Council hereby finds and determines that the foregoing recitals are true and correct. SECTION 2. Elections. That pursuant to the requirements of the Charter, there is called and ordered to be held in the City of San Luis Obispo, California, on Tuesday, November 6, 2018, a General Municipal Election for the purpose of electing a Mayor for the full term of two years; and two Members of the City Council for the full term of four years. a) That pursuant to Section 9222 of the Elections Code, the Council orders that the Cannabis Business Tax Ordinance be submitted to the voters at that election. b) That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 3. Candidate Statement . That pursuant to Elections Code Sections 13307 and 13308, each candidate for elective office may prepare a Candidate Statement of Qualification on an appropriate form provided by the City Clerk. a) The statement may include the name, age and occupation of the candidate and a brief description of no more than 250 words of the candidate’s education and qualifications expressed by the candidate himself or herself. b) The statement shall not include party affiliation of the candidate, membership or activity in partisan politica l organizations, and shall not in any way make reference to other candidates for the same office or to another candidate’s qualifications, character, or activities. c) The statement shall be filed in typewritten form in the Office of the City Clerk at the time the candidate’s nomination papers are filed. d) The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period. e) Pursuant to Elections Code Section 13313, the statement shall remain confidential until after the close of the nomination period and will be available for public examination for no less than 10 days after the close of nominations. Any challenges to a statement must be made during this 10-day period. f) Pursuant to the Federal Voting Right s Act, candidate statements will be translated into all languages required by the County of San Luis Obispo. The County will print and mail sample ballots and candidates’ statements to all voters in English and in Spanish. g) Each candidate who files a Candidate Statement of Qualifications will be required to pay an estimated deposit at the time the statement is filed to cover the cost of the printing and handling. The estimated deposit amount is an approximation of the actual cost and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the City Clerk is not bound by the estimate and will bill the candidate for additional actual expense or refund any excess amount paid depending on the final actual cost. Packet Pg. 14 Item 1 Resolution No. _____ (2018 Series) Page 3 R ______ h) That the City Clerk shall provide each candidate or the candidate’s representative a copy of this resolution at the time nomination papers are issued. SECTION 4. Proposal. The City Council hereby proposes the Cannabis Business Tax. SECTION 5. Ballot Question. The question submitted by Section 2 of this Resolution shall appear on the ballot as follows: “Shall the measure to maintain and improve essential City services, including without limitation: police and fire services; senior, youth and park services; programs to retain and attract local jobs and address homelessness, by establishing a cannabis business tax up to 10% of gross receipts for retail and businesses and up to $10.00 per canopy square foot for cultivation, raising approximately $1,500,000 annually, until ended by voters, with all funds used locally, be adopted.” YES NO a) That the proposed complete text of the Ordinance submitted to the voters is attached as Exhibit A. SECTION 6. Approval. Pursuant to Section 2(b) of Article XIII B of the Constitution, this measure requires approval by a majority of those casting ballots on the measure. SECTION 7. Consolidation. That the Board of Supervisors is requested to issue instructions to the county election department to take any and all steps necessary for the holding of the consolidated election. a) That the county election department is authorized to canvass the returns o f the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the statewide or special election. b) That the City of San Luis Obispo recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs. i) The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill. c) That the ballots to be used at the election shall be in form and content as required by law. d) That the City Clerk is authorized, instructed and directed to coordinate with the County of San Luis Obispo Registrar-Recorder/County Clerk to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. e) That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of Packet Pg. 15 Item 1 Resolution No. _____ (2018 Series) Page 4 R ______ the same day when the polls shall be closed, pursuant to Election Code § 10242, except as provided in § 14401 of the Elections Code of the State of California. SECTION 8. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. a) The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the county election department of the County of San Luis Obispo. 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 Packet Pg. 16 Item 1 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, SETTING PRIORITIES FOR FILING A WRITTEN ARGUMENT REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, a General Municipal Election is to be held in the City of San Luis Obispo, California, on November 6, 2018, at which there will be submitted to the voters the following measure: NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo, as follows: SECTION 1. That the City Council authorizes ALL members of the City Council to file a written argument In Favor of or Against City measure not exceeding 300 wo rds, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California . The arguments may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk . The arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument . SECTION 2. That the City Council directs the City Clerk to transmit a copy of the measure to the City Attorney, unless the organization or salaries of the office of the City Attorney are affected. a. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure. If the measure affects the organization or salaries of the office of the city attorney, the city clerk shall prepare the impartial analysis. b. The analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the city. c. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point type, the following: “The abo ve statement is an impartial analysis of the Ordinance. If you desire a copy of the Packet Pg. 17 Item 1 Resolution No. _____ (2018 Series) Page 2 R ______ ordinance, please call the election official’s office at (805) 781-7100 and a copy will be mailed at no cost to you.” d. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. SECTION 3. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. 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 Packet Pg. 18 Item 1 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS. WHEREAS, § 9282 of the Elections Code of the State of California provides for written arguments to be filed in favor of or against city measures not to exceed 300 words in length; and WHEREAS, § 9285 of the Elections Code of the State of California authorizes the City Council, by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for city measures submitted at municipal elections. NOW, THEREFORE, BE IT RESOLVED by the Council of the City o f San Luis Obispo as follows: SECTION 1. That pursuant to Section 9285 of the Elections Code of the State of California, when the elections official has selected the arguments for and against the measure (not exceeding 300 words each) which will be printed and distributed to the voters, the elections official shall send a copy of an argument in favor of the proposition to the authors of any argument against the measure and a copy of an argument against the measure to the authors of any argument in favor of the measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a city measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five authors. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument sha ll immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for city measures are repealed. SECTION 3. That the provisions of Section 1 shall apply at the next ensuing municipal election and at each municipal election after that time. Packet Pg. 19 Item 1 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. 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 Packet Pg. 20 Item 1 O ______ 1 EXHIBIT A ORDINANCE NO. _____ (2018 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA ADDING CHAPTER 5.10 (CANNABIS BUSINESS TAX) TO TITLE 5 OF THE SAN LUIS OBISPO MUNICIPAL CODE BE IT ORDAINED BY THE PEOPLE OF THE CITY OF SAN LUIS OBISPO AS FOLLOWS: SECTION 1. CODE AMENDMENT. Chapter 5.10 of Title 5 of the San Luis Obispo Municipal Code is hereby added to read as follows: CHAPTER 5.10 CANNABIS BUSINESS TAX Sections: 5.10.010 Title. 5.10.020 Authority and Purpose. 5.10.030 Intent. 5.10.040 Definitions. 5.10.045 Registration of Cannabis Business 5.10.050 Tax imposed. 5.10.060 Reporting and remittance of tax. 5.10.070 Payments and communications –timely remittance. 5.10.080 Payment – when taxes deemed delinquent. 5.10.090 Notice not required by City. 5.10.100 Penalties and interest. 5.10.110 Refunds and credits. 5.10.120 Refunds and procedures. 5.10.130 Personal cultivation not taxed. 5.10.140 Administration of the tax. 5.10.150 Appeal procedure. 5.10.160 Enforcement –action to collect. 5.10.170 Apportionment. 5.10.180 Constitutionality and legality. 5.10.190 Audit and examination of premises and records. 5.10.200 Other licenses, permits, taxes or charges. 5.10.210 Payment of tax does not authorize unlawful business. 5.10.220 Deficiency determinations. 5.10.230 Failure to report – nonpayment, fraud. 5.10.240 Tax assessment –notice requirements. 5.10.250 Tax assessment – hearing, application, and determination. 5.10.260 Relief from taxes-disaster relief. 5.10.270 Conviction for violation – taxes not waived. 5.10.280 Violation deemed misdemeanor. Packet Pg. 21 Item 1 O ______ 2 5.10.290 Severability. 5.10.300 Remedies cumulative. 5.10.310 Amendment or repeal. 5.10.010 Title. This ordinance shall be known as the Cannabis Business Tax Ordinance. 5.10.020 Authority and Purpose. The purpose of this Ordinance is to impose a tax, for revenue purposes, pursuant to section 203 of the City charter and sections 37101 and 37100.5 of the California Govern ment Code, upon persons who engage in cannabis business in the City. The Cannabis Business Tax is a general tax enacted solely to raise revenue for general governmental purposes of the City and not for regulation. All of the proceeds from the tax impo sed by this Chapter shall be placed in the City's general fund and be available for any lawful municipal purpose in the discretion of the City. 5.10.030 Intent. The intent of this Ordinance is to levy a tax on all Cannabis Businesses that operate in the City, regardless of whether such business would have been legal at the time this Ordinance was adopted. Nothing in this Ordinance shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken. 5.10.040 Definitions. The following words and phrases shall have the meanings set forth below when used in this Chapter: A. “Business” shall include all activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade , profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer. B. “Cannabis” 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 cannabis as defined by Section 11018.5 of the California Health and Safety Code, by Section 26001, subdivision (f) of the Business and Professions Code, and by other State law. C. “Cannabis product” means raw canna bis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical Packet Pg. 22 Item 1 O ______ 3 product. “Cannabis product” also means marijuana products as defined by Section 11018.1 of the California Health and Safety Code and by other State law. D. “Canopy” means all areas occupied by any portion of a cannabis plant whether contiguous or noncontiguous on any one site. When plants occupy multiple horizontal planes (as when plants are placed on shelving above other plants) each plane shall be counted as a separate canopy area. E. “Cannabis business” means any business activity involving cannabis, including but not limited to cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing and wholesaling of cannabis, of cannabis products or of ancillary products and accessories, whether or not carried on for gain or profit , whether for medical or recreationa l use, and whether or not such business is licensed by the State. F. “Cannabis business tax” or “business tax,” means the tax due pursuant to this Chapter for engaging in cannabis business in the City. G. “City Manager” means the City Manager of the City under section 703 of the charter or his or her designee under section 1.08.070 of this Code. H. “Commercial cannabis cultivation” means cultivation in the course of conducting a cannabis business. Commercial cannabis cultivation does not include personal medical cannabis cultivation, or cultivation for personal recreational use as authorized by the Medicinal and Adult - Use Cannabis Regulation and Safety Act (MAUCRSA) for which the individual receives no compensation whatsoever. I. “City permit” means a permit issued by the City to a person to authorize that person to operate or engage in a cannabis business. J. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of ca nnabis and includes, but is not limited to, the operation of a nursery. K. “Delivery” means the transfer for any form of compensation of cannabis or cannabis products to a customer or caregiver at a location that is not a dispensary. L. “Dispensary” means a place at which cannabis, cannabis products, or accessories for the use of cannabis or cannabis products are offered, either individually or in combination, for retail sale, including an establishment that engages in delivery, whether or not from a fixed place of business. M. “Distributor” means a person engaged in procuring cannabis and/or cannabis products for sale to a dispensary or other point of retail sale. “Distribution” means engaging in that conduct. N. “Employee” means each and every perso n engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or Packet Pg. 23 Item 1 O ______ 4 solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation. O. “Engaged in business as a cannabis business” means the commencing, conducting, operating, managing or carrying on of a cannabis business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if: 1. Such person or person’s employee maintains a fixed place of business within the City for the benefit or partial benefit of such person; 2. Such person or person’s employee owns or leases real property within the City for business purposes; 3. Such person or person’s employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business; 4. Such person or person’s employee regularly conducts solicitation of business within the City; or 5. Such person or person’s employee performs work or renders services in the City. The foregoing specified activities shall not be a limitation on the meaning of “engaged in business.” P. “Evidence of doing business” means evidence such as, without limitation, use of signs, circulars, cards or any other advert ising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the City. Q. “Calendar year” means January 1 through December 31 of the following calendar year. R. “Gross Receipts,” except as otherwise specifically provided, means, whether designated a sales price, royalty, rent, commission, dividend, or other designation, the total amount (including all receipts, cash, credits and property of any kind or nature) received or payable for sales of goods, wares or merchandise or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or i n connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. However, the following shall be excluded from the definition of Gross Receipts: 1. Cash discounts where allowed and taken on sales; 2. Any tax required by law to be included in or added to the purchase price and Packet Pg. 24 Item 1 O ______ 5 collected from the consumer or purchaser; 3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; 4. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business; 5. Cash value of sales, trades or transactions between departments or units of the same business; 6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; 7. Receipts of refundable depo sits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; 8. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the finance department with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees. 9. Retail sales of t -shirts, sweaters, hats, stickers, key chains, bags, books, posters, rolling papers, cannabis accessories such pipes, pipe screen, vape pen batteries (without cannabis) or other personal tangible property which the Tax Administrator has excluded in writing by issuing an administrative ruling per Section 5.10.140 shall not be subject to the cannabis business tax under this chapter. However, any retail sales not subject to this Chapter as a result of the administrative ruling shall be subject to the appropriate business tax under Chapter 5.01 or any other Chapter or Title as determined by the Tax Administrator. S. “Manufacturer” means a person who engages in 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. T. “Nursery” means a facility or part of a facility that is used only for producing clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. Packet Pg. 25 Item 1 O ______ 6 U. “Person” means an individual, firm, partnership, joint venture, association, collective, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for -profit entity, and includes the plural as well as the singular number. V. “Sale” means and includes any sale, exchange, or barter. W. “State” means the State of California. X. “Tax Administrator” means the Finance Director of the City of San Luis Obispo or his or her designee. Y. “Testing Laboratory” means a cannabis business that (i) offers or performs tests of cannabis or cannabis products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state and (v) is licensed by the Bureau of Cannabis Control. 5.10.045 Registration of Cannabis Business. A. All persons engaging in a cannabis business, whether an existing, newly-established or acquired business, shall register with the Tax Administrator’s office by the later of: 1. 30 days after commencing operation or 2. January 1, 2019 and shall annually renew such registration on or before the anniversary of the initial registration for that business. B. Registrants shall furnish to the Tax Administrator a statement sworn under penalty of perjury, upon a form provided by the Tax Administrator, setting forth: 1. Every name under which the business engages in commercial cannabis activity in the City; 2. The names and addresses of every person who is an owner, principal or manager of the business; 3. The nature or kind of all business activity to be conducted; 4. The place or places, whether or not in the City, where such business is to be conducted; and 5. Any further information which the Tax Administrato r may require to administer the tax under this Chapter. C. Registrants shall pay an annual registration fee in an amount established from time to time by resolution of the City to recover the City’s costs to implement the registration requirement of this section, and the other provisions of this chapter , other than the duty to pay tax when due. As a regulatory fee, such fee shall be limited to the City’s reasonable costs for those activities. Packet Pg. 26 Item 1 O ______ 7 5.10.50 Tax imposed. A. Beginning January 1, 2019, there is imposed upon each person who is engaged in business as a cannabis business a cannabis business tax, whether the business has been issued a permit to operate lawfully in the City or is operating unlawfully. B. The initial rate of the cannabis business tax shall be as follows, unless adjusted: 1. For every person who is engaged in commercial cannabis cultivation in the City: a. Seven dollars ($7.00) annually per square foot of canopy space in a facility. For purposes of this chapter, the square feet of canopy space for a business shall be rebuttably presumed to be the maximum square footage of canopy a llowed by the business’s City permit for commercial cannabis cultivation, or, in the absence of a City permit, the square footage shall be the maximum square footage of canopy for commercial cannabis cultivation allowed by the business’ state license. Sho uld a City permit be issued to a business which cultivates only for certain months of the year, the City shall prorate the tax as to sufficiently reflect the period in which cultivation is occurring at the business. In no case shall canopy square footage w hich is authorized by the City commercial cannabis permit , but not utilized for cultivation, be deducted for the purpose of determining the tax for cultivation, unless the Tax Administrator is informed in writing that such space will not be used and authorizes such reduction for the purpose of relief from the tax prior to the period for which the space will not be used .. 2. For every person who engages in the operation of a testing laboratory: one percent (1%) of gross receipts. 3. For every person who engages in the retail sales of cannabis as a retailer (dispensary) or non-store front retailer (delivery) or microbusiness (retail sales): Six percent (6%) of gross receipts. 4. For every person who engages in a cannabis distribution bus iness: two percent (2%) of gross receipts. 5. For every person who engages in a cannabis manufacturing, processing, or microbusiness (non-retail), or any other type of cannabis business not described in Section (B) (1), (2), (3) or (4): Two and half percent (2.5%) of gross receipts. C. The City Council may, by resolution or ordinance, adjust the rate of the cannabis business tax. However, in no event may the City Council set any adjusted rate that exceeds the maximum rate calculated pursuant to Subdivision (D) of this Section for the date on which the adjusted rate will commence. D. The maximum rate shall be calculated as follows: Packet Pg. 27 Item 1 O ______ 8 1. For every person who is engaged in commercial cannabis cultivation in the City: a. Through January 1, 2021, the maximum rate shall be: i. Ten dollars ($10.00) annually per square foot of canopy space in a facility. b. On January 1, 2022 and on each January 1 thereafter, the maximum annual tax rate per square foot of each type of canopy space shall increase by the percentage change between January of the calendar year prior to such increase and January of the calendar year of the increase in the Consumer Price Index (“CPI”) for all urban consumers in the Los Angeles-Long Beach-Anaheim area as published by the United States Government Bureau of Labor Statistics. However, no CPI adjustment resulting in a decrease of any tax imposed by this subsection shall be made. 2. For every person who engages in the operation of a testing laboratory, the maximum tax rate shall not exceed two and a half percent (2.5%) of gross receipts. 3. For every person who engages in the retail sales of cannabis as a retailer (dispensary) or non-store front retailer (delivery business), or microbusiness (retail sales activity) the maximum tax rate shall not exceed ten percent (10%) of gross receipts. 4. For every person who engages in a cannabis distribution business, the maximum tax rate shall not exceed three percent (3%) of gross receipts. 5. For every person who engages in a cannabis manufacturing, processing, or microbusiness (non-retail activity) or any other type of cannabis business not described in Section (D) (1), (2), (3) or (4), the maximum tax rate shall not exceed four percent (4%) of gross receipts. 5.10.060 Reporting and remittance of tax. A. The cannabis business tax imposed by this Chapter shall be paid, in arrears, on a monthly basis. For commercial cannabis cultivation, the tax due for each month shall be based on the square footage of the business’s canopy space during the month and the rate shall be 12% of the applicable annual rate. For all other cannabis businesses activities, the tax due for each month shall be based on the gross receipts for the month. B. Each person owing cannabis business tax for a month shall, no later than the last day of the following month, file with the tax administrator a statement of the tax owed for that month and the basis for calculating that tax. The Tax Administrator may require that the statement be submitted on a form prescribed by the Tax Administrator . The tax for each month shall be due and payable on that same date as the statement for the month is due. C. Upon cessation of a cannabis business, tax statements and payments shall be immediately due for all months up to the month during which cessation o ccurred. Packet Pg. 28 Item 1 O ______ 9 D. The Tax Administrator may, at his or her discretion, establish shorter report and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure collection of the tax. The Tax Administrator may also require that a deposit, to be applied against the taxes for a month, be made by a taxpayer at the beginning of that month. In no event shall the deposit required by the Tax Administrator exceed the tax amount he or she projects will be owed by the taxpayer for the month. The Tax Administrator may require that a taxpayer make payments via a cashier’s check, money order, wire transfer, or similar instrument. 5.10.070 Payments and communications – timely remittance. Whenever any payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not be accepted as timely remittance. If the due date would fall on a Saturday, S unday or a holiday, the due date shall be the next regular business day on which the City is open to the public. 5.10.080 Payment - when taxes deemed delinquent. Unless otherwise specifically provided under other provisions of this Chapter, the taxes required to be paid pursuant to this Chapter shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 5.10.060 and 5.10.070. 5.10.090 Notice not required by the City. Failure of the Tax Administrator to send a notice or bill shall not affect the validity of any tax or penalty due under the provisions of this Chapter. 5.10.100 Penalties and interest. A. Any person who fails or refuses to pay any cannabis business tax required to be paid pursuant to this Chapter on or before the due date shall pay penalties and interest as follows: 1. A penalty equal to ten percent (10%) of the amount of the tax, in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent (1.0%) per month. 2. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one percent (1.0%) per month on the unpaid tax and on the unpaid penalties. 3. Interest shall be applied at the rate of one percent (1.0%) per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full. B. Whenever a check or electronic payment is submitted in payment of a cannabis business tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will Packet Pg. 29 Item 1 O ______ 10 be liable for the tax amount due plus any fees, penalties and interest as provided for in this Section, and any other amount allowed under state law. 5.10.110 Refunds and credits. A. No refund shall be made of any tax collected pursuant to this Chapter, except a s provided in Section 5.10.120. B. No refund of any tax collected pursuant to this Chapter shall be made because of the discontinuation, dissolution, or other termination of a business. 5.10.120 Refunds and procedures. A. Whenever the amount of any cannabis business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this Chapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund is filed with the Tax Administrator within one (1) year of the date the tax was originally due and payable. B. The Tax Administrator, his or her designee or any other City officer charged with the administration of this Chapter shall have the right to examin e and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. C. In the event that the cannabis business tax was erroneously paid, and the error is attributable to the City, upon a timely claim the City shall refund the amount of tax erroneously paid in the year preceding the date the claim was received. 5.10.130 Personal Cultivation Not Taxed. The provisions of this Chapter shall not apply to personal cannabis cultivation as defined in the “Medicinal and Adult Use Cannabis Regulation and Safety Act”. This Chapter shall not apply to personal use of cannabis that is specifically exempted from the City state licensing requirements, that meets the definition of personal use or equivalent terminology under state law, and for which the individual receives no compensation whatsoever related to that personal use. 5.10.140 Administration of the tax. A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this Chapter. B. For purposes of administration and enforcement of this Chapter generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules, and procedures consistent with the purpose, intent, and express terms of this Chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement. He or she shall give notice of those regulations in the manner required by law for publication of ordinances of the City Council Packet Pg. 30 Item 1 O ______ 11 and the regulations shall take effect 30 days after such notice unless otherwise provided in a particular regulation. C. The Tax Administrator may take such administrative actions as needed to administer the tax, including but not limited to: 1. Provide to all cannabis business taxpayers forms for the reporting of the tax; 2. Provide information to any taxpayer concerning the provisions of this Chapter; 3. Receive and record all taxes remitted to the City as provided in this Chapter; 4. Maintain records of taxpayer reports and taxes collected pursuant to this Chapter; 5. Assess penalties and interest to taxpayers pursuant to this Chapter; 6. Determine amounts owed and enforce collection pursuant to this Chapter. 5.10.150 Appeal procedure. Any taxpayer aggrieved by any decision of the Tax Administrator with respect to the amount of tax, interest, penalties and fees, if any, due under this Chapter may appeal to the City Manager by filing a notice of appeal with the City Clerk within thirty (30) d ays of the serving or mailing of the determination of tax due. The City Clerk, or his or her designee, shall fix a time and place for hearing such appeal, and the City Clerk, or his or her designee, shall give notice in writing to such operator at the last known place of address. The finding of the City Manager shall be final and conclusive as to the City, but subject to judicial review under Code of Civil Procedure section 1094.5 and shall be served upon the appellant in the manner prescribed by this Chapter for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of the notice. 5.10.160 Enforcement - action to collect. Any taxes, penalties and/or fees required to be paid under the provisions of this Chapter shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this Chapter shall be liable in an action brought in the name of the City for the recovery of such debt. 5.10.170 Apportionment. If a business subject to the tax is operating both within and outside the City, it is the intent of the City to apply the cannabis business tax so that the measure of the tax fairly reflect s the proportion of the taxed activity actually carried on in the City. To the extent federal or state law requires that any tax due from any taxpayer be apportioned, the taxpayer may propose an apportionment on his or her tax return. The Tax Administrat or may accept or reject that apportionment and, if the latter, shall establish an appropriate apportionment on such evidence as is provided by the taxpayer or otherwise available to the Tax Administrator. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary. Packet Pg. 31 Item 1 O ______ 12 5.10.180 Constitutionality and legality. A. This tax is intended to be applied consistently with the United States and California Constitutions, state law and the City Charter. The tax shall not be applied so as to cause an undue burden upon interstate commerce, a violation of the equal protection and due process clauses of the Constitutions of the United States or the State of California, to constitute a special tax, or to cause a violation o f any other provision of applicable law. B. The taxes imposed under this chapter are excises on the privilege of engaging in commercial cannabis activity in the City. They are not sales or use taxes and shall not be calculated or assessed as such. Nevertheless, at the option of a cannabis business, the tax may be separately identified on invoices, receipts and other evidences of transactions. 5.10.190 Audit and examination of premises and records. A. For the purpose of ascertaining the amount of cannabis business tax owed or verifying any representations made by any taxpayer to the City in support of his or her tax calculation, the Tax Administrator shall have the power to inspect any location wher e commercial cannabis cultivation or commercial business activity occurs, whether or not located in the City, and to audit and examine all books and records (including, but not limited to bookkeeping records, state and federal income tax returns, and other records relating to the gross receipts of the business) of persons engaged in cannabis businesses. In condu cting such investigation, the tax administrator shall have the power to inspect any equipment, such as computers or point of sale machines, that may contain such records. B. It shall be the duty of every person liable for the collection and payment to the City of any tax imposed by this Chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable to or pay to the City, which records the Tax Administrator or his/her designee shall have the right to inspect at all reasonable times. 5.10.200 Other licenses, permits, taxes, fees or charges. A. Nothing contained in this Chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any permit or license required by, under or by virtue of any provision of any other Chapter of this code or any other ordinance or resolution of the City, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required by, under or by virtue of any other Chapter of this code or any other ordinance or resolution of the City. Any references made or contained in any other Chapter of this code to any licenses, license taxes, fees, or charges, or to any schedule of license fees, shall be deemed to refer to the licenses, license taxes, fees or charges, or schedule of license fees, provided for in other Chapter of this Code unless the context is plain that another meanin g is attended. B. Notwithstanding subdivision (A) of this Section, a cannabis business shall not be required to pay the license fee required by Chapter 5.01 of Title 5 of this Code so long as all of business’ Packet Pg. 32 Item 1 O ______ 13 activities within the City that would require payment of a license fee are subject to the cannabis business tax. C. The Tax Administrator may revoke or refuse to renew the license required by Chapter 5.01 of this Code for any business that is delinquent in the payment of any tax due pursuant to this Chapter or that fails to make a deposit required by the tax administrator pursuant to Section 5.10.060. 5.10.210 Payment of tax does not authorize unlawful business. A. The payment of a cannabis business tax required by this Chapter, and its acceptance by t he City, shall not entitle any person to carry on any cannabis business unless the person has complied with all of the requirements of this Code and all other applicable state and local laws. B. No tax paid under the provisions of this Chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law although businesses illegal under other law are nevertheless subject to tax under this Chapter according to its terms. 5.10.220 Deficiency determinations. If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this Chapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a business, a deficiency determination may be made at any time within three (3) years thereafter as to any liability ari sing from engaging in such business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as no tices of assessment are given under Section 5.10.240. 5.10.230 Failure to report—nonpayment, fraud. A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of tax owed by a person under t his Chapter at any time: 1. If the person has not filed a complete statement required under the provisions of this Chapter; 2. If the person has not paid the tax due under the provisions of this Chapter; 3. If the person has not, after demand by the Tax Ad ministrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this Chapter; or Packet Pg. 33 Item 1 O ______ 14 4. If the Tax Administrator determines that the nonpayment of any business tax due under this Chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise stated in this Chapter and any other penalties allowed by law. B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable section of this Chapter and shall include the amount of any penalties or interest accrued on each amount to the date of the notic e of assessment. 5.10.240 Tax assessment - notice requirements. The notice of assessment shall be served upon the person either by personal delivery, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the perso n at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this Chapter; or, should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address. For the purposes of this Section, a service by mail is complete at the time of deposit in the United States mail. 5.10.250 Tax assessment - hearing, application and determination. Within thirty (30) days after the date of service the person may apply in writing to the Tax Administrator for a hearing on the assessment. If application for a hearing before the City is not made within the time herein prescribed, the tax assessed by the Tax Administrator shall become final and conclusive. Within thirty (30) days of the receipt of any such application for hearing, the Tax Administrator shall cause the matter to be set for hearing before him or her no later than thirty (30) days after the receipt of the application, unless a later date is agreed to by the Tax Administrator and the person requesting the hearing. Notice of such hearing shall be given by the Tax Administrator to the person requesting such hearing not later than five (5) d ays prior to such hearing. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess the proper tax to be charged and shall give written notice to the person in the manner prescribed in Section 5.10.240 for giving notice of assessment. 5.10.260 Relief from taxes -disaster relief. A. If a business is unable to comply with any tax requirement due to a disaster, the business may notify the Tax Administrator of this inability to comply and request relief from the tax requirement; B. The Tax Administrator, in its sole discretion, may provide relief from the cannabis business tax requirement for businesses whose operations have been impacted by a disaster of such tax Packet Pg. 34 Item 1 O ______ 15 liability does not exceed five thousand ($5,000) dollars. If such tax liability is five thousand one ($5,001) dollars or more than such relief shall only be approved by the C ity Manager; C. Temporary relief from the cannabis tax may be relieved for a reasonable amount of time as determined by the Tax Administrator in order to allow the cannabis business time to recover from the disaster; D. The Tax Administrator may require that certain conditions be followed in order for a cannabis business to receive temporary relief from the cannabis business tax requirement; E. A cannabis business shall not be subject to an enforcement action for a violation of a cannabis business requirement in which the licensee has received temporary relief from the tax administrator; F. For purposes of this section, “disaster” means fire, flood, storm, tidal wave, earthquake, or similar public calamity, whether or not resulting from natural causes. 1. The cannabis business must notify the Tax Administrator in writing a request for temporary relief from imposition of the tax requirement pursuant to subsection (a) of this section of such disaster clearly indicates why relief is requested from, the time period for wh ich the relief is requested, and the reasons relief is needed for the specified amount of time; 2. The cannabis business agrees to grant the tax collector or his/her designee access to the location where the cannabis business has been impacted due to a disaster. 5.10.270 Conviction for violation - taxes not waived. The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this Chapter or of any state law requiring the payment of all taxes. 5.10.280 Violation deemed misdemeanor. Any person violating any of the provisions of this Chapter shall be guilty of a misdemeanor punishable under Chapter 1.12 of this Code unless the Tax Administrator provides by regulation that violation of a particular provision of this Chapter ought to be enforced as an infraction or if the City Attorney determines in his or her discretion that a particular violation ought to be enforced as an infraction in the interests of justice. 5.10.290 Severability. If any provision of this Chapter, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Chapter or the application of Packet Pg. 35 Item 1 O ______ 16 this Chapter to any other person or circumstance and, to that end, the provisions hereof are severable. 5.10.300 Remedies cumulative. All remedies and penalties prescribed by this Chapter or which are available under any other provision of the San Luis Obispo Municipal Code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this Chapter provided only that the City not recover any sum due under this Chapter, including penalties and interest, more than once . 5.10.310 Amendment or repeal. This Chapter may be repealed or amended by the City Council without a vote of the people to the extent allowed by law. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would increase the maximum rates of any tax established pursuant to this Chapter. The people of the City of San Luis Obispo affirm that the following actions shall not constitute an increase of the rate of a tax: A. The restoration of a tax to a rate or amount that is no higher than that set by this Chapter; B. An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarificat ion) is not inconsistent with the language of this Chapter; or C. The collection of the tax imposed by this Chapter even if the City had, for some period of time, failed to collect the tax. 5.10.320 Enforcement consistently with business license tax Except as otherwise provided in this Chapter, the taxes due under this Chapter may be enforced in the manner provided by Chapter 5.01 of this case and any policy or regulation adopted or implement pursuant to that Chapter. Packet Pg. 36 Item 1 O ______ 17 SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The People of the City of San Luis Obispo hereby declare that t hey would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid. SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT REQUIREMENTS. This Ordinance is exempt from the California Environmental Quality Act (CEQA), Public Resources Code Section 21000 et seq., because it can be seen with certainty that there is no possibility that the enactment of this Ordinance would have a significant effect on the environment (Pub. Resources Code § 21065; CEQA Guidelines §§ 15378(b)(4), 15061(b)(3)) and because the Ordinance involves the approval of government revenues to fund existing services (Pub. Resources Code § 21080, subd. (b)(8); CEQA Guidelines § 15273(a)(4)). It does not make any commercial activity lawful and does not commit the City to fund any particular activity. SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect 10 days after the certification of its approval by the voters at the Election pursuant to article III of the City Charter and Elections Code section 9217. SECTION 5. CERTIFICATION; PUBLICATION. Upon appro val by the voters, the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law. It is hereby certified that this Ordinance was duly adopted by the voters at the November 6, 2018 Election and took effect 10 days following adoption of a resolution declaring the results of the election at a regular meeting of the City Council held on _______by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: ____________________________ Teresa Purrington City Clerk . ____________________________________ Heidi Harmon, Mayor Packet Pg. 37 Item 1 Page intentionally left blank. Packet Pg. 38 Item 1 Meeting Date: 6/5/2018 FROM: Derek Johnson, City Manager Prepared by: PFM Consulting Brigitte Elke, Interim Finance Director SUBJECT: BOND DOCUMENTS APPROVING THE SALE OF THE WATER REVENUE REFUNDING BONDS, SERIES 2018 RECOMMENDATION Approve a Resolution (Attachment A) aut horizing staff to proceed with a transaction to issue the City of San Luis Obispo Water Revenue Refunding Bonds, Series 2018 and to execute all necessary documents in connection with the transaction. DISCUSSION The proposed transaction (the “2018 Bonds”) will fully refund the City of San Luis Obispo 2006 Water Revenue Bonds (the “Prior Bonds”) for the purpose of achieving debt service savings. The Series 2006 Bonds are outstanding in the amount of $12,520,000. The 2018 Bonds will be water revenue bonds issued by the City. The debt service will be repaid from Net Revenues that are deposited in the Water Fund. The Resolution will authorize staff to proceed with the transaction provided certain parameters are met. The par amount of the refunding bonds will not exceed $13,000,000, net present value (NPV) savings will be at least 3% of the refunded principal (consistent with the standard industry benchmark), and underwriter’s discount will not exceed 0.5% of the par amount of the bonds. The Resolution also approves the following transaction documents in substantially final form: • Indenture (Attachment B): Between the City and the bond trustee, which sets forth the obligations of the City with respect to payment of the debt service on the bonds, the terms of the bonds, the rights of the bondholders, and the duties of the bond trustee ; • Continuing Disclosure Certificate (Attachment C): Designates the City’s ongoing obligations to disclose financial information to bond investors; • Preliminary Official Statement (Attachment D): Primary disclosure document used to market the 2018 Bonds to investors; • Bond Purchase Agreement (Attachment E): Details terms of the transaction between the City and the underwriter; and • Escrow Agreement (Attachment F): Between the City and the bond trustee, as escrow agent, under which the escrow agent holds the funds to redeem the Prior Bonds and redeems them on the date set for redemption. The financing team will be composed of PFM Financial Advisors LLC (“PFM”) serving as municipal advisor to the City, Raymond James & Associates, Inc. (“Raymond James”) as underwriter, and Orrick, Herrington & Sutcliffe LLP as bond and disclosure counsel to the City. Packet Pg. 39 Item 2 U.S. Bank is the trustee on the Prior Bonds and will continue to serve as trustee and as escro w agent for the 2018 Bonds. Standard & Poor’s (“S&P”) will provide a bond rating. The City may also engage a financial printer, escrow verification agent, escrow bidding agent, and other providers as needed. Upon Council’s approval, staff and the financing team will proceed to execute a bond transaction that meets the parameters defined in the Resolution. The 3% minimum savings parameter is set in order to allow for flexibility to accommodate interest changes prior to the bond pricing (currently anticipated in late June). All savings figures take into account underwriting fees and other transaction costs. The table below shows good faith estimates of key statistics related to the 2018 Bonds based on current market conditions, provided by Raymond James and r eviewed by PFM. It is important to note that conditions may change prior to bond pricing. Value Estimate Notes Par Amount $11,390,000 - True Interest Cost 3.49% Measure of overall interest rate NPV Savings $723,437 (5.78%) - Finance Charges (transaction costs) $290,000 Underwriter’s discount plus costs of issuance Total Proceeds $11,779,000 Price paid for bonds less underwriter’s discount Total Payments $15,747,000 Total debt service The financing is expected to close in early July. FISCAL IMPACT The 2018 Bonds will result in annual debt service savings for the Water Fund. Cash flow savings are estimated to be approximately $975,000 over the term of the 2018 Bonds based on current market conditions. The table below shows annual cash flow saving s. NPV savings are estimated at $723,437, which is 5.78% of the refunded principal. Because the refunding will be structured without a debt service reserve fund, the final maturity of the refunding bonds will be reduced by one year. Packet Pg. 40 Item 2 Fiscal Year 2006 Bonds Debt Service Reserve Release and Interest Earnings* Prior Net Debt Service Refunding Debt Service Savings 6/30/2019 $1,035,348 $40,594 $994,754 $936,856 $57,898 6/30/2020 1,030,873 46,100 984,772 924,213 60,560 6/30/2021 1,035,293 46,100 989,192 929,213 59,980 6/30/2022 1,033,405 46,100 987,305 928,413 58,892 6/30/2023 1,030,400 46,100 984,300 921,813 62,487 6/30/2024 1,031,119 46,100 985,019 924,613 60,406 6/30/2025 1,030,744 46,100 984,644 926,413 58,231 6/30/2026 1,034,275 46,100 988,175 927,213 60,962 6/30/2027 1,031,494 46,100 985,394 922,013 63,381 6/30/2028 1,031,794 46,100 985,694 926,013 59,681 6/30/2029 1,030,744 46,100 984,644 923,813 60,831 6/30/2030 1,033,344 46,100 987,244 925,613 61,631 6/30/2031 1,034,369 46,100 988,269 926,213 62,056 6/30/2032 1,033,819 46,100 987,719 925,613 62,106 6/30/2033 1,030,663 46,100 984,562 923,813 60,750 6/30/2034 1,030,888 46,100 984,787 925,813 58,975 6/30/2035 1,034,263 46,100 988,162 928,563 59,600 6/30/2036 1,030,556 1,081,448 -50,891 0 -50,891 Total $18,583,386 $1,859,643 $16,723,744 $15,746,206 $977,538 * Existing debt service reserve is expected to earn interest annually through 2036 and would then be released in 2036 if no refunding takes place. ALTERNATIVES Staff recommends the Council adopt the Resolution approving the issuance of the 2018 Bonds and all necessary documents in connection with the transaction. It is not possible to predict whether market conditions will be more or less favorable in the future. However, it is impor tant to note that available savings will diminish over time unless interest rates decline because all of the Prior Bonds are currently callable. Packet Pg. 41 Item 2 Attachments: a - Draft Resolution - San Luis Obispo 2018 Water Revenue Refunding Bonds 4154-3230- 4145 4 b - Council Reading File - Indenture San Luis Obispo Water Revenue Refunding 2018 4165-3907-6113 2 c - Council Reading File - Continuing Disclosure Certificate_San Luis Obispo 2018 Water Revenue Bonds 4153-0337-9730 2 d - Council Reading File - Preliminary Official Statement_San Luis Obispo Water Revenue Bonds 2018 4166-0740-7890 7 e - Council Reading File - BPA-2 CLEAN f - Council Reading File - Escrow Agreement (2006 Water Bonds) - City of San Luis Obispo 2018 4128-0083-2019 1 Packet Pg. 42 Item 2 RESOLUTION NO. ___ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF CITY OF SAN LUIS OBISPO, CALIFORNIA WATER REVENUE REFUNDING BONDS; THE EXECUTION AND DELIVERY OF AN INDENTURE, A BOND PURCHASE AGREEMENT, A CONTINUING DISCLOSURE CERTIFICATE; THE PREPARATION AND DISTRIBUTION OF A PRELIMINARY AND A FINAL OFFICIAL STATEMENT RELATING TO THE AFORESAID BONDS; AND CERTAIN OTHER ACTIONS IN CONNECTION WITH SUCH TRANSACTIONS WHEREAS, City of San Luis Obispo, California (the “City”) has previously issued its City of San Luis Obispo 2006 Water Revenue Bonds in the original aggregate principal amount of $16,905,000 (the “Prior Bonds”) for the purpose of paying for the design, engineering, permitting and construction of certain additions, betterments, extensions and improvements to the City’s water system; WHEREAS, the City is authorized by law to issue refund ing revenue bonds to refinance any obligations theretofore incurred by it; WHEREAS, the City has determined that it is in the best interest of the City and it is necessary and proper for the City to issue its Water Revenue Refunding Bonds, Series 2018 (the “Bonds”) to refund the Prior Bonds, pay costs of issuance of the bonds, and to fund a reserve fund, if deemed necessary; WHEREAS, the City proposes to enter into an Indenture (the “Indenture”) with a U.S. Bank National Association, as trustee (the “Trustee”), pursuant to which the City will issue the Bonds; WHEREAS, the City and Raymond James & Associates, Inc. (the “Underwriter”), as purchaser of the Bonds, will enter into a Bond Purchase Agreement (the “Bond Purchase Agreement”) whereby the Bonds will be sold to the Underwriter; WHEREAS, the City has prepared an official statement relating to the Bonds (the “Official Statement”) in preliminary form for use in connection with the marketing of the Bonds to potential purchasers and for use in final form for distribution to the actual purchasers thereof; WHEREAS, the Council now wishes to further authorize the execution and delivery of an escrow agreement (the “Escrow Agreement”), by and between the City and U.S Bank National Association, as escrow agent, pursuant to which the City will deposit a portion of the proceeds of the Bonds in trust for the payment of the Prior Bonds; Packet Pg. 43 Item 2 WHEREAS, the City Council now wishes to further authorize the execution and delivery of a continuing disclosure certificat e (the “Continuing Disclosure Certificate”) by the City to assist the Underwriter in satisfying their obligations under Rule 15c2 -12 of the Securities Exchange Act of 1934; WHEREAS, there have been made available to the City Council the following document s and agreements: (1) A proposed form of the Indenture; (2) A proposed form of the Bond Purchase Agreement; (3) A proposed form of preliminary Official Statement; (4) A proposed form of the Escrow Agreement; and (5) A proposed form of Co ntinuing Disclosure Certificate; WHEREAS, in compliance with Government Code Section 5852.1, the City Council has obtained from PFM Financial Advisors LLC, as municipal advisor, the certain required good faith estimates and such estimates have been disclosed at this meeting; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. The foregoing recitals are true and correct and the City Council hereby so finds and determines. SECTION 2. The City Council hereby approves the issuance of the Bonds by the Authority in an aggregate principal amount not to exceed $13,000,000 to refund the Prior Bonds, including funding a debt service reserve account if deemed necessary and paying costs of issuance and related fees and expenses. The Bonds shall be issued and secured in accordance with the terms of, and shall be in the form set forth in, the Indenture. The Finance Director of the City is hereby directed to perform the duties imposed upon her by the provisions of the financing documents, including the Indenture. SECTION 3. The Indenture, in substantially the form submitted to this meeting, is hereby approved. The City Manager or Finance Director of the City, or the designee of such officer (each, an “Authorized Officer”), each acting alone, is hereby authorized and directed, for and on behalf of the City to execute and deliver the Continuing Disclosure Certificate in substantially the form presented at this meeting, with such changes therein as the officer executing the same may, with the advice of the City Attorney and the City’s bond counsel, require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. The Trustee, dated date, maturity date or dates, interest rate or rates, interest payment dates, denominations, forms, registration privileges, manner of execution, place or places of payment, terms of redemption and other terms of the Bonds shall be as provided in the Indenture, as finally executed ; provided, however that such Bonds shall mature no later than June 1, 2036. Packet Pg. 44 Item 2 SECTION 4. The Continuing Disclosure Certificate, in substantially the form submitted to this meeting, is hereby approved. Any Authorized Officer, each acting alone, is hereby authorized and directed, for and on behalf of the City to execute and deliver the Continuing Disclosure Certificate in substantially the form presented at this meeting, with such changes therein as the officer executing the same may, with the advice of the City Attorney and the City’s bond counsel, require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 5. The Bond Purchase Agreement, in substantially the form submitted to this meeting, is hereby approved. Any Authorized Officer, each acting alone, is hereby authorized and directed, for and on behalf of the City, to execute and deliver the Bond Purchase Agreement in substantially said form, with such changes therein as any Authorized Officer, with the advice of the City Attorney a nd the City’s bond counsel, may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, that the net present value of the debt service savings with respect to the Bonds shall be at least 3.00% of the aggregate principal amount of the Prior Bonds being redeemed and the Underwriter’s discount shall not exceed 0.5% of the aggregate principal amount of the Bonds (exclusive of original issue discount). SECTION 6. The preliminary form of the Official Statement to be used in connection with the offer and sale of the Bonds is hereby adopted and approved, and any Authorized Officer, each acting alone, is hereby authorized to execute and deliver a certificate deeming the preliminary form of the Official Stateme nt (including, if applicable, as modified by any amendment or supplement thereto) “final” within the meaning of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 and to execute and deliver the same in final form, for and on behalf of the Authority, with such changes therein as the officer executing the same, with the advice of the City Attorney, may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 7. The Escrow Agreement, in substantially the form submitted to this meeting, is hereby approved. Any Authorized Officer, each acting alone, is hereby authorized and directed, for and on behalf of the City to execute and deliver the Escrow Agreement in substantially the form presented at this meeting, with such changes therein as the officer executing the same may, with the advice of the City Attorney and the City’s bond counsel, require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 8. The City hereby designates the firm of Orrick, Herrington & Sutcliffe LLP to serve as bond counsel and disclosure counsel, and the firm of PFM Financial Advisors LLC to serve as municipal advisor, each in connection with the issuance, sale and deliv ery of the Bonds. Packet Pg. 45 Item 2 SECTION 9. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents, written requests, certificates, and representations, including, without limitation, redemption or defeasance notices, escrow agreements, credit documents, signature certificates, no -litigation certificates, tax certificates, letters of representation relating to book-entry registration and certificates concerning the contents of the Official Statement distributed in connection with the sale of the Bonds , which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds or related documents and otherwise to effectuate the pur poses of this resolution. SECTION 10. This resolution shall take effect immediately. 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 Packet Pg. 46 Item 2 San Luis Obispo Page 1 Tuesday, May 15, 2018 Regular Meeting of the City Council CALL TO ORDER: Mayor Heidi 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: Vice Mayor Carlyn Christianson PRESENTATIONS 1. PROCLAMATION - PUBLIC WORKS WEEK Mayor Harmon presented a Proclamation to Daryl Grigsby, Public Works Director and Carrie Mattingly, Utilities Director, declaring May 20-26, 2018 as "National Public Works and Utilities Week.” 2. PROCLAMATION - HUNGER AWARENESS DAY Mayor Harmon presented a Proclamation to Steve Davis, Food Bank Coalition Board President, declaring June 1, 2018 as "Hunger Awareness Day.” 3. PROCLAMATION - BUILDING SAFETY MONTH Mayor Harmon present ed a Proclamation to Mark Sadowski, Building and Safety Supervisor, Martin Van Gundy, Interim Chief Building Official, and Roger Maggio, Fire Marshal, declaring May, 2018 as "Building Safety Month” Packet Pg. 47 Item 6 San Luis Obispo City Council Minutes of May 15, 2018 Page 2 PUBLIC COMMENT ON ITEM S NOT ON THE AGENDA Jeffrey Specht ---End of Public Comment --- CONSENT AGENDA ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL MEMBER PEASE, CARRIED 5-0 to approve Consent Calendar Items 4 thru 14. 4. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate. 5. MINUTES OF MAY 1, 2018 CARRIED 5-0, to approve the Minutes of the City Council meeting of May 1, 2018. 6. ADOPTION OF AN ORDINANCE 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, REFLECTING REVISIONS DIRECTED BY COUNCIL Public Comment: Sean Donaho e ---End of Public Comment--- CARRIED 5-0, to adopt Ordinance No. 1647 (2018 Series) 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),” establishing standards to protect public health and safety regulating personal cannabis cultivation, cannabis business operators, and permitted cannabis business activities in the City and establishing 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. 7. RESOLUTION APPROVING THE 2018 STANDARD SPECIFICATIONS AND ENGINEERING STANDARDS UPDATE CARRIED 5-0, to: 1. Adopt Resolution No. 10889 (2018 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving revised Standard Specifications and Engineering Standards for Construction: approving revised Standard Specifications and Engineering Standards for Construction; and Packet Pg. 48 Item 6 San Luis Obispo City Council Minutes of May 15, 2018 Page 3 2. Adopt Resolution No. 10890 (2018 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving revised Standard Specifications and Engineering Standards for Construction” approving an appeal process for Standard Specifications and Engineering Standards variance; and 3. Authorize the City Engineer to release projects currently in design or approved by Council under the 2016 City Standard Specifications on a case by case basis. 8. OSOS/LEFF/SANTA BARBARA SEWERLINE REPLACEMENT PROJECT SPECIFICATION NO. 91438 CARRIED 5-0, to: 1. Approve plans and specifications for the Osos/Leff/Santa Barbara Sewerline Project, Specification Number 91438, 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 $950,000. 9. AUTHORIZATION TO RELEASE A REQUEST FOR PROPOSALS FOR COMMUNITY CHOICE ENERGY TECHNICAL AND ENERGY SERVICES Public Comment: Eric Veiu m ---End of Public Comment --- CARRIED 5-0, to: 1. Authorize the release of the RFP to solicit proposals for energy and technical services to support the development and ongoing administration of a local Community Choice Energy (CCE) program pursuant to Specification No. 91669; and 2. Authorize the City Manager to award a consultant services agreement to the selected consulting firm(s). 10. RESOLUTION AMENDING THE WATER RESOURCE RECOVERY FACILITY PROJECT LOAN RESOLUTION NO. 10762 (2016 SERIES) CARRIED 5-0, to adopt Resolution No. 10891 (2018 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Pledging Sewer Fund Revenues to the State Water Resources Control Board for the Financing of The Water Resour ce Recovery Facility Upgrade.” 11. POLICE PORTABLE RADIO UPGRADE Packet Pg. 49 Item 6 San Luis Obispo City Council Minutes of May 15, 2018 Page 4 CARRIED 5-0, to; 1. Award a contract and authorize a purchase order for Emergency Vehicle Specialists, Inc. in the amount of $162,555 for the purchase and configuration of Kenwood portable radios and associated accessories for the Police Department. 2. Waive formal bids and authorize use of WSCA Contract 06913 to sole source this project to Emergency Vehicle Specialists, Inc. as allowed under 3.24.060 E. of the City of San Luis Obispo Municipal Code. 12. REQUEST FOR PROPOSALS – CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES, WATER RESOURCE RECOVERY FACILITY PROJECT CARRIED 5-0, to approve the Request for Proposals Construction Management and Inspection Services, Water Resource Recovery Facil ity Project, Specification No. 91363CM and authorize staff to advertise the Request for Proposals. 13. ADOPT A RESOLUTION TO LICENSE PARKING STALLS TO RECARGO, INC., FOR THE PURPOSE OF INSTALLING, OPERATING, AND MAINTAINING ELECTRIC VEHICLE CHARGERS CARRIED 5-0, to adopt Resolution No. 10892 (2018 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, to license parking stalls to Recargo, Inc. for the purpose of installing, operating, and maintaining electric vehicle chargers” at the Calle Joaquin Park and Ride Lot subject to the approval of the City Attorney. 14. AUTHORIZE GRANT APPLICATIONS FOR WILDLAND–URBAN INTERFACE FUEL REDUCTION AND OPEN SPACE LAND MANAGEMENT PURPOSES CARRIED 5-0, to: 1. Authorize the Office of Sustainability to prepare and submit grant applications for wildland-urban interface fuel reduction and open space land management purposes. 2. Authorize the City Manager or designee to execute any other required grant application- related documentation. PUBLIC HEARINGS AND BUSINESS ITEMS 15. PUBLIC HEARING - UPDATE TO GENERAL PLAN, WATER AND WASTEWATER MANAGEMENT ELEMENT Utilities Director Carrie Mattingly and Deputy Director Aaron Floyd provided an in-depth staff report and responded to Council que stions. Public Comments: None Packet Pg. 50 Item 6 San Luis Obispo City Council Minutes of May 15, 2018 Page 5 ---End of Public Comment --- ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL MEMBER RIVOIRE, CARRIED 5-0 to adopt Resolution No. 10893 (2018 Series) entitled “A Resolution of the City Council of the City o f San Luis Obispo, California approving a Negative Declaration (EID 1455-2018) and Amendments to the Water and Wastewater Management Element of the General Plan (GENP-1454-2018)” with the following changes to Chapter 8 Water and Wastewater page 8-9: The Sustainable Groundwater Management Act (SGMA) is a statewide law that empowers requires local agencies to adopt groundwater management plans that relate to the needs and resources of their communities. In 2017, the City became a Groundwater Sustainability Agency (GSA) over the area of the San Luis Obispo Valley Groundwater Basin, designated by the California Department of Water Resources as a Medium Priority Basin, that lies beneath and within its jurisdictional boundaries. And Recycled water is highly treated wastewater approved for reuse by the California Department of Public Health for a variety of applications, including landscape irrigation and construction dust control. Completed in 2006, the Water Reuse Project created the first new source of water for the City since 1961 following construction of Whale Rock Dam. The Project resulted in improvements at the City’s Water Resource Recovery Facility and an initial eight miles of distribution pipeline. The City’s first delivery of recycled water took place in 2006. The City estimates demand exists for approximately 1,000 acre feet of recycled water for landscape irrigation and other approved uses. In addition to use landscape irrigation, the City is examining several alternatives for maximizing the long -term beneficial use of recycled water. Alternatives include providing groundwater recharge within the San Luis Obispo Valley Basin for indirect potable reuse (IPR), or direct potable reuse (DPR). Additional information is provided on recycled water in subsec tions A 3.0, A 7.0, and B 3.0 of this Element and in the 2017 Recycled Water Master Plan. 16. PUBLIC HEARING - REVIEW OF AN APPEAL (FILED BY NEW HERITAGE FAMILY LIMITED PARTNERSHIP) OF THE ARCHITECTURAL REVIEW COMMISSION’S CONDITION APPROVAL NO. 31.D OF RESOLUTION NO. ARC 1002-18 This item was pulled from the agenda as the applicant withdrew the appeal. 17. PUBLIC HEARING - AN ORDINANCE INTRODUCTION TO CODE ENFORCEMENT PRIORITIES IMPLEMENTATION AND BUILDING CODE FINE AMENDMENT Community Development Director Michael Codron and Interim Chief Building Official Martin Van Gundy Public Comments: None Packet Pg. 51 Item 6 San Luis Obispo City Council Minutes of May 15, 2018 Page 6 ---End of Public Comment --- ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0 to: 1. Introduce Ordinance No. 1648 (2018 Series) entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 1.24 (Administrative Code Enforcement Procedures) of Title 1 to the San Luis Obispo Municipal Code”; and 2. Adopt Resolution No. 10894 (2018 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, amending the amount of administrative fines payable under certain citations” to adopt and implement the recommended amended administrative fine schedule for violations of Titles 8, 15, and 17 (except Chapter 17.17). STUDY SESSION 18. REVIEW OF A BALLOT MEASURE AND DRAFT ORDINANCE REGARDING A CANNABIS BUSINESS TAX Public Comments: Sean Donahoe ---End of Public Comment --- By consensus City Council provided the following direction: • To revise the ballot question to group homelessness with senior, youth and park services and reword the retain and attract businesses portion. COUNCIL LIAISON REPORTS AND COMMUNICATIONS Council Member Rivoire indicated that for personal reasons he would be stepping down as Council’s representative for San Luis Obispo Council of Governments (SLOCOG). Council Member Gomez provided an over of the IWMA meeting and indicated that they are pursuing a countywide polystyrene ban. Council Member Pease attended the Anholm bikeway workshop and the Building Community Summit . ADJOURNMENT The meeting was adjourned at 8:22 p.m. Adjourn to the next regularly scheduled City Council Meeting on Tuesday, June 5, 2018 at 4:00 p.m. and 6:00 p.m. in the Council Chamber, 990 Palm Street, San Luis Obispo, California. Packet Pg. 52 Item 6 San Luis Obispo City Council Minutes of May 15, 2018 Page 7 __________________________ Teresa Purrington City Clerk APPROVED BY COUNCIL: XX/XX/2018 Packet Pg. 53 Item 6 Page intentionally left blank. Packet Pg. 54 Item 6 Meeting Date: 6/5/2018 FROM: Michael Codron, Community Development Director Prepared By: Cassia Cocina, Acting Code Enforcement Supervisor SUBJECT: RESOLUTION AUTHORIZING THE COLLECTION OF DELINQUENT CODE ENFORCEMENT FINES RECOMMENDATION Adopt a Resolution authorizing the co llection of delinquent code enforcement fines by the San Luis Obispo County Auditor by means of special assessments on the secured property tax roll. DISCUSSION Background The Building & Safety Division enforces building, housing, zoning, stormwater and property maintenance provisions contained in the San Luis Obispo Municipal Code through its Code Enforcement programs. When violations are confirmed, a Notice of Violation is issued to the property owner describing the violation(s) and providing a time per iod for correction. This is preceded by an effort to contact the property owner to discuss the violation(s) and obtain voluntary compliance. When the initial Notice of Violation is not effective in gaining compliance, an Administrative Citation may be issued pursuant to SLOMC Chapter 1.24. Fines associated with Administrative Citations range from $50, $100, and $200 per violation for the first, second and third citations, respectively, issued for property maintenance related violations. For other violations of the Municipal Code the fines are $100, $200, and $500 for the first, second and third violation. In addition, fines may be assessed on a daily basis for continuing violations beyond the third citation or in very delinquent or serious cases (SLOMC 1.24 .050 D). Although the City Council took the initial step necessary to increase these citation amounts on May 15, the updated fine amounts will not apply to the current list of properties subject to collection through property tax rolls. Collection of Delinquent Fines Code Enforcement Administrative Citation fines are issued to property owners who fail to correct violations within a reasonable time period after issuance of a Notice of Violation. The property owner is afforded the right to appeal the Administrative Citation. Unpaid fines become delinquent after sixty (60) days once all appeal rights have expired. Pursuant to SLOMC Section 1.24.150, Government Code section s 53069.4, and 38773.1(a) and 38773.5, unpaid fines may be collected by a special asses sment (Attachment A). Special assessment requires certification of the amount of the fines by the City Council. The recommended Resolution (Attachment B) authorizes the San Luis Obispo County Auditor to assess the amounts due on delinquent fines as special tax assessments against the properties Packet Pg. 55 Item 7 listed. A list of the outstanding fines for each property is attached hereto as Attachment C. Each property owner has been sent a Notice of Proposed Special Assessment prior to the hearing, which notifies them of t he time and date of the Council Meeting when the assessment is to be considered and providing them an opportunity to pay the delinquent fines prior to the hearing. The Community Development Department utilized extensive cross-checking with its tracking spreadsheet and Energov payment and billing records to identify the fines that are outstanding. Each case was then reviewed for accuracy, proper notice and service, and the completion of any appeal submitted prior to inclusion in the resolution. CONCURRENCES This process is consistent with the procedure prescribed by Municipal Code Section 1.24.150. FISCAL IMPACT Projected revenue from the collection of delinquent fines by the County Auditor for Fiscal Year 2017-2018 is expected to be $44,200. ALTERNATIVES Do not adopt the resolution and continue to forward unpaid fines to a collection agency. This is not recommended because the delinquent fines listed only includes those that are no longer subject to appeal and collection by the County Auditor is both lower cost and more effective. This is a routine, annual process that regularly results in both the fine being paid and the correction of persistent violations. If a violation still exists, o wners typically will address the violation in addition to paying t he fine along with their regular property taxes. Attachments: a - SLOMC 1.24.150 b - Resolution c - Exhibit A to Resolution - List of Properties Packet Pg. 56 Item 7 1.24.150 Collection of unpaid fines. A. City Remedies. The city, at its discretion, may pursue any and all legal, equitable, and administrative remedies for the collection of unpaid civil administrative fines. A civil administrative fine shall be deemed unpaid the day after the due date set by the administrative citation, or if appealed, the day after the due date set by the hearing officer or applicable board in its decision. If the decision of the hearing officer or applicable board is appealed to, or petition for writ filed with, the superior court, the civil administrative fine shall be deemed unpaid the day after the due date set by the superior court. If the superior court upholds the administrative citation, but fails to set a due date, the fine shall be deemed unpaid on the eleventh day after the superior court decision is mailed. 1. Remedies Cumulative. Pursuit of one remedy does not preclude the pursuit of any other remedies. 2. Refusal to Issue Permits. A city department may refuse to accept an application for a city permit or license or refuse to issue, extend, or renew to any person who has unpaid delinquent fines, liens, or assessments any city permit, license, or other city approval pertaining to the property that is the subject of unpaid delinquent fines, liens or assessments. 3. Suspension of Issued Permits. Notwithstanding any other provision of the code, any permit, license, or any type of land use approval issued by the city to a person who has unpaid administrative citations totaling five hundred dollars or more which remain delinquent for thirty days or longer may be suspended by the department which issued the permit or other entitlement. The suspension becomes effective ten days after the date the notice of the suspension is placed by the issuing department in the United States mail postage prepaid, addressed to the person, and continues until the administrative delinquency is paid in full. The person may request an appeal or review hearing pursuant to the specific permit, license, or other city approval procedures or ordinance if such a request is filed before the ten-day period ends. 4. Criminal Remedies. The city attorney, at his or her discretion, may also issue a criminal citation or complaint (infraction or misdemeanor) to any person for a code violation. B. Violations Constitute a Public Nuisance. The director may pursue the remedies described in this section whether or not the city is pursuing any other action to terminate an ongoing code violation that was the basis for an administrative citation or to otherwise abate the violation or sanction the property owner. To compel code compliance, the city may also seek to collect assessed fines by means of a nuisance abatement lien or special assessment against the property where a property related violation occurred in accordance with the procedures in Government Code Sections 38773.1 and 38773.5. The San Luis Obispo Municipal Code is current through Ordinance 1645, and legislation passed through March 20, 2018. San Luis Obispo Municipal Code 1.24.150 Collection of unpaid fines.Page 1 of 2 Packet Pg. 57 Item 7 C. Lien Conditions. To recover any delinquent administrative fines as a lien or special assessment on real property, the following conditions must be met: 1. The director must submit to and receive approval from the city council for a resolution certifying the amounts of the liens and special assessments sought to be collected from each property owner; and 2. The total amount of the delinquent fine against the property owner must be delinquent for sixty days or more. D. Lien Collections. The director is authorized to take any steps necessary to enforce collection of the lien or special assessment, including but not limited to the following: 1. Request the county recorder to record a notice of any lien or special assessment certified by resolution of the city council. 2. Request the county tax collector on behalf of the city to collect any special assessments certified by resolution of the city council. E. Notice of Lien Collection Procedures. All administrative citations shall contain a notice that unpaid fines are subject to the assessment and lien collection procedures of this chapter. This notice shall satisfy the notice requirements of Government Code Sections 38773.1 and 38773.5 when an administrative citation is served on the person. In addition, the director shall by first class mail send notice to each property owner at least ten days before the city council considers the resolution to certify the amounts of the liens and special assessments stating the date, time, and location of the meeting. The lien or special assessment shall be imposed on the date the administrative citation for the code violation is issued to the responsible person and shall become effective upon the recording of a notice of lien or special assessment by the county recorder. F. Contesting Certification of a Lien. A person may contest the amount or the validity of any lien or special assessment for a civil fine at the public hearing when the city council considers the resolution to certify the liens or assessments. Such contests shall be limited to the issue of the amount or validity of the lien or assessment and may not consider whether the underlying code violation occurred. Pursuit of such a contest by a person is necessary to exhaust the administrative remedies concerning a legal challenge to the validity of any such lien or special assessment. (Ord. 1625 § 1 (part), 2015) The San Luis Obispo Municipal Code is current through Ordinance 1645, and legislation passed through March 20, 2018. San Luis Obispo Municipal Code 1.24.150 Collection of unpaid fines.Page 2 of 2 Packet Pg. 58 Item 7 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE SAN LUIS OBISPO COUNTY AUDITOR TO ASSESS AMOUNTS DUE ON DELINQUENT ADMINISTRATIVE FINES AS SPECIAL ASSESSMENTS AGAINST THE PROPERTIES PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS 38773.1(a), 38773.5, and 53069.4(a) WHEREAS, Government Code Section 53069.4(a) authorizes the City to adopt an ordinance that go verns the imposition, enforcement, collection and administrative review of administrative fines arising out of violations of the Municipal Code; and WHEREAS, pursuant to Government Code Section 53069.4(a), the City adopted Chapter 1.24 of the Municipal Co de, which has been subsequently amend; and WHEREAS, Section 1.24.150 of the Municipal Code provides that the City may request that the County Assessor collect, on behalf of the City, any administrative fines which are more than 60 days delinquent, and which are certified by the City Council as special assessments; and WHEREAS, the City Council of San Luis Obispo finds that all of the fine amounts for the referenced properties listed below are at least 60 days delinquent; and WHEREAS, the property owners responsible for the violations were notified of the violations and received citations and were subsequently notified in writing by a notice mailed May 21, 2018 pursuant to Section 1.24.150 of the Municipal Code of this hearing and their right to contest the assessment. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The above recitals are true and correct and incorporated herein by this reference as the findings of the City Council. Packet Pg. 59 Item 7 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 2. Action. The City of San Luis Obispo hereby authorizes the San Luis Obispo County Auditor to assess the amounts due on delinquent accounts as special assessment against the properties listed on the Exhibit A, pursuant to California Gove rnment Code Sections 38773.1(a), 38773.5, and 54988, et seq. 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 Packet Pg. 60 Item 7 Name of Property Owner Assessor's Parcel #Property Address Amount Due Citation # JAMESTOWN PREMIER SLO RETAIL LP A DE LP 002-425-001 1028 Chorro 50.00$ 00011955 LINDA DAVENPORT 053-242-019 1035 Cortez 200.00$ 00010226 LINDA DAVENPORT 053-242-019 1035 Cortez 400.00$ 00010443 LINDA DAVENPORT 053-242-019 1035 Cortez 900.00$ 00010630 LINDA DAVENPORT 053-242-019 1035 Cortez 900.00$ 00010870 LINDA DAVENPORT 053-242-019 1035 Cortez 900.00$ 00011589 LINDA DAVENPORT 053-242-019 1035 Cortez 900.00$ 00011902 LINDA DAVENPORT 053-242-019 1035 Cortez 900.00$ 00012253 BURTNESS FAMILY TRUST 004-962-029 1110 Orcutt 50.00$ 00009373 BURDETT JOHN W LIVING TRUST 004-731-013 1171 San Carlos 500.00$ 00010504 BURDETT JOHN W LIVING TRUST 004-731-013 1171 San Carlos 500.00$ 00010804 BURDETT JOHN W LIVING TRUST 004-731-013 1171 San Carlos 500.00$ 00011316 BURDETT JOHN W LIVING TRUST 004-731-013 1171 San Carlos 500.00$ 00011645 REGAN CANDELARIO 004-781-009 1284 Sydney 200.00$ 00009055 REGAN CANDELARIO 004-781-009 1284 Sydney 200.00$ 00009200 REGAN CANDELARIO 004-781-009 1284 Sydney 200.00$ 00009295 DANIEL BRINKMAN 052-351-030 150 Del Norte 50.00$ 00010406 DANIEL BRINKMAN 052-351-030 150 Del Norte 100.00$ 00010565 DANIEL BRINKMAN 052-351-030 150 Del Norte 200.00$ 00010668 DANIEL BRINKMAN 052-351-030 150 Del Norte 200.00$ 00010801 DANIEL BRINKMAN 052-351-030 150 Del Norte 200.00$ 00010932 DANIEL BRINKMAN 052-351-030 150 Del Norte 200.00$ 00011315 DANIEL BRINKMAN 052-351-030 150 Del Norte 200.00$ 00011537 MATTHEW HERRERA 001-132-018 1565 Phillips 50.00$ 00009172 MATTHEW HERRERA 001-132-018 1565 Phillips 200.00$ 00009581 MATTHEW HERRERA 001-132-018 1565 Phillips 100.00$ 00009319 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00009525 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00012272 MATTHEW HERRERA 001-132-018 1575 Phillips 50.00$ 00009186 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00011960 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00009866 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00011303 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00010803 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00010228 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00009184 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00010503 MATTHEW HERRERA 001-132-018 1575 Phillips 500.00$ 00011644 MATTHEW HERRERA 001-132-018 1575 Phillips 100.00$ 00010229 RYUKO FUNAKOSHI 053-514-051 1795 Tonini 50.00$ 00010505 STEVEN WHITE 003-646-009 1821 Morro 6,000.00$ 00011377 STEVEN WHITE 003-646-009 1821 Morro 200.00$ 00010866 STEVEN WHITE 003-646-009 1821 Morro 50.00$ 00010648 STEVEN WHITE 003-646-009 1821 Morro 100.00$ 00010746 NEVAREZ GUILLERMO R INDIVIDUAL LIVING TRUST 052-234-012 1990 Loomis 50.00$ 00011813 NEVAREZ GUILLERMO R INDIVIDUAL LIVING TRUST 052-234-012 1990 Loomis 100.00$ 00012314 LUDMILA JDANOFF 052-093-007 230 Kentucky 50.00$ 00009092 CODERRE RICHARD L TRUST 052-012-041 234 Cerro Romauldo 50.00$ 00011505 CODERRE RICHARD L TRUST 052-012-041 234 Cerro Romauldo 100.00$ 00011756 Packet Pg. 61 Item 7 Name of Property Owner Assessor's Parcel #Property Address Amount Due Citation # CODERRE RICHARD L TRUST 052-012-041 234 Cerro Romauldo 200.00$ 00011953 COLLISTER RUTH A %PAYTRUST 003-693-021 2474 Augusta 50.00$ 00009201 JERRY BURCH 004-784-009 2505 Johnson 800.00$ 00009054 JERRY BURCH 004-784-009 2505 Johnson 600.00$ 00011641 JERRY BURCH 004-784-009 2505 Johnson 800.00$ 00010752 JERRY BURCH 004-784-009 2505 Johnson 400.00$ 00012273 JERRY BURCH 004-784-009 2505 Johnson 800.00$ 00010445 JERRY BURCH 004-784-009 2505 Johnson 400.00$ 00011961 CALIFORNIA COASTAL INVESTMENTS LLC % TRIAD 004-581-001 2881 Broad 100.00$ 00008978 CALIFORNIA COASTAL INVESTMENTS LLC % TRIAD 004-581-001 2881 Broad 200.00$ 00009116 KAILEY HOO 052-462-009 296 Marlene 50.00$ 00009767 KAILEY HOO 052-462-009 296 Marlene 100.00$ 00009958 KAILEY HOO 052-462-009 296 Marlene 200.00$ 000010214 JOSEPH DRUCKER 052-292-020 350 Tolosa 50.00$ 00009195 JOSEPH DRUCKER 052-292-020 350 Tolosa 100.00$ 00009418 ARTHUR FRY III 052-352-001 4 La Entrada 100.00$ 00009094 ARTHUR FRY III 052-352-001 4 La Entrada 100.00$ 00009503 ARTHUR FRY III 052-352-001 4 La Entrada 200.00$ 00009775 LEAGE JEAN C REVOCABLE TRUST 052-032-070 692 Foothill 50.00$ 00009630 TANK FARM CENTER LLC A CA LLC 053-251-073 120 Tank Farm 500.00$ 00009291 DELTA THETA CHAPTER OF GAMA PHI BETA 002-333-009 1326 Higuera $ 500.00 00010403 DELTA THETA CHAPTER OF GAMA PHI BETA 002-333-009 1326 Higuera $ 1,000.00 00011730 ARH QUAIKY INVESTMENTS LLC A CA LLC 053-151-036 1460 Calle Joaquin $ 100.00 00009005 ARH QUAIKY INVESTMENTS LLC A CA LLC 053-151-036 1460 Calle Joaquin $ 200.00 00009365 MARY FLEMING 053-023-018 159 Loma Bonita $ 100.00 00010555 MARY FLEMING 053-023-018 159 Loma Bonita $ 200.00 00010893 Darin Grandfield 003-564-009 1690 Fairview $ 200.00 00009524 CW ANDREWS FAMILY LP 001-072-026 1930 Monterey $ 2,200.00 00012147 BROOKLANDS PROPERTIES LLC 003-723-019 220 Branch $ 600.00 00012032 FRANCIS DODD 001-105-025 246 Chorro $ 500.00 00009110 % CHANNEL LUMBER 052-162-023 793 Foothill F $ 300.00 00011816 JUSTIN WARREN 003-656-009 1026 George $ 500.00 00009646 PREFUMO CREEK HOMEOWNERS ASSOCIATION 053-501-038 1098 Isabella $ 200.00 00009444 PREFUMO CREEK HOMEOWNERS ASSOCIATION 053-501-038 1098 Isabella $ 400.00 00009747 PREFUMO CREEK HOMEOWNERS ASSOCIATION 053-501-038 1098 Isabella $ 1,000.00 00010563 BURTNESS FAMILY TRUST 004-962-029 1114 Orcutt E $ 100.00 00009403 BURTNESS FAMILY TRUST 004-962-029 1114 Orcutt E $ 200.00 00011862 JERRY BURCH 004-784-010 2525 Johnson $ 5,000.00 00010864 JERRY BURCH 004-784-010 2525 Johnson $ 2,000.00 00010232 JERRY BURCH 004-784-010 2525 Johnson $ 1,000.00 00009950 SNYDER FAMILY SURVIVOR'S TRUST 053-182-029 3191 South Higuera $ 500.00 00010558 SNYDER FAMILY SURVIVOR'S TRUST 053-182-029 3191 South Higuera $ 200.00 00010253 LEE BRAZIL 052-032-055 572 Foothill $ 100.00 00011370 MARIEL APODACA 004-943-008 683 Mitchell $ 100.00 00012154 Total 44,200.00$ Packet Pg. 62 Item 7 Meeting Date: 6/5/2018 FROM: Carrie Mattingly, Utilities Director Prepared By: Mychal Boerman, Water Resources Program Manager SUBJECT: COLLECTION OF DELINQUENT SOLID WASTE COLLECTION AND DISPOSAL ACCOUNTS RECOMMENDATION Adopt a resolution (Attachment A) authorizing the San Luis Obispo County Assessor to assess amounts due to San Luis Garbage Company on delinquent accounts for provision of solid waste collection and disposal services as described in City Municipal Code Section 8.04.070 as liens against properties involved. DISCUSSION Background Based on the need to protect public health and safety, the Municipal Code establishes that occupants of all developed properties within the City benefit from regular periodic collection of solid waste. Section 8.04.070 of the Municipal Code states: 1. That all developed properties in the City must use the solid waste collection and disposal service provided by the City's franchisee. 2. That the franchisee is responsible for collecting all fees for the service. 3. That the owners of deve loped properties are ultimately responsible for paying for the service. 4. That once each year the franchisee may take actions to collect from delinquent solid waste collection and disposal accounts. 5. That, after the franchisee has completed the actions established within the Municipal Code, the City will adopt a resolution authorizing the San Luis Obispo County Assessor to assess amounts due on delinquent accounts as liens against the properties. San Luis Garbage Company has taken the actions prescribed in the Municipal Code to collect delinquent solid waste collection and disposal accounts. In adherence to the Municipal Code, San Luis Garbage Company has presented the City with a list of property owners whose accounts were more than 120 days past due, has sent certified letters to those property owners requesting payment, and has presented the City with a final list of property owners whose accounts are still past due. The attached resolution authorizes the San Luis Obispo County Assessor to assess the a mounts due on delinquent accounts as liens against the properties. Packet Pg. 63 Item 8 Delinquent Accounts Not Assessed in 2017 While a request was brought to the City Council last year to lien past -due accounts, the resolution was not sent to the County of San Luis Obispo due to a clerical error made by San Luis Garbage Company. The error would have caused accounts to be assessed an incorrect dollar amount for the past -due balance. Therefore, delinquent accounts assessed this year will include past due account balances that are still unpaid from 2017. ENVIRONMENTAL REVIEW The recommended actions are not a project as defined under the California Environmental Quality Act. FISCAL IMPACT There is no fiscal impact to the City. The Municipal Code states that any fees charge d by the San Luis Obispo County Assessor to lien the affected properties will be borne by the franchisee. The total past due amount to be assessed is $2685.75. ALTERNATIVES The City’s Municipal Code Section 8.04.070 provides a process for San Luis Obisp o Garbage Company to collect payment for delinquent solid waste collection and disposal accounts. The City Council could choose not to approve the recommended action if it believes San Luis Garbage Company has not taken the actions prescribed in the Municipal Code. Based on the information provided to the City, staff has determined that San Luis Garbage Company has taken the actions prescribed in the Municipal Code to collect delinquent solid waste collection and disposal accounts. Attachments: a - Liened Properties Resolution - 2018 Packet Pg. 64 Item 8 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE SAN LUIS OBISPO COUNTY ASSESSOR TO ASSESS AMOUNTS DUE ON DELINQUENT SOLID WASTE COLLECTION AND DISPOSAL ACCOUNTS AS LIENS AGAINST THE PROPERTIES PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 25828, ET SEQ. WHEREAS, Section 8. 04.070 of the San Luis Obispo Municipal Code establishes that all developed propert ies in the City must use the solid waste collection and disposal service provided by the City's franchisee, that the franchisee is responsible for collecting fees for its services, and that owners of developed properties are responsible for paying for the service; and WHEREAS, Section 8. 04.070 of the Municipal Code further provides a method by which, once each year, the franchisee may take actions to collect fees from the owners of developed properties which have delinquent solid waste collection and disp osal accounts; and WHEREAS, the City and franchisee, San Luis Garbage Company, have taken all actions required in Section 8. 04.070 of the Municipal Code to collect fees from delinquent accounts. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the San Luis Obispo County Assessor is hereby authorized to assess the amounts due on delinquent accounts as established and certified by franchisee San Luis Garbage Company as liens against the properties listed below. Name Parcel No. Service Address Amount SNYDER, CHARLES C 053-182-029 3191 S HIGUERA ST $364.15 SNYDER, CHARLES C 053-182-029 3191 S HIGUERA ST $411.82 VIVIAN MCDONALD C/O DAVID ANHOLM TRE ETAL 001-212-003 770 TORO ST $399.69 ROSSINI, GLORIA 004-561-016 1230 WOODSIDE DR $395.25 SNYDER, ELEANOR 003-564-007 1672 FAIRVIEW ST $275.97 DANA WINDES (TE) C/O GEORGINA WALTERS 053-300-020 1286 CHAPARRAL CIR $308.64 ALFRED MCCOWEN C/O PATRICIA MCCOWEN 004-413-046 1614 VICENTE DR $279.92 DARIN, MARSHA 001-106-004 274 CHORRO ST $129.95 FISHBEIN, SARAH 004-421-007 1777 VICENTE DR $120.36 Packet Pg. 65 Item 8 Resolution No. _____ (2018 Series) Page 2 R ______ Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 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 Packet Pg. 66 Item 8 Meeting Date: 6/5/2018 FROM: Carrie Mattingly, Director of Utilities Prepared By: Mychal Boerman, Water Resources Program Manager SUBJECT: MODIFICATION OF CORPORATION YARD WELL CLOSURE TIMELINE RECOMMENDATION 1. Adopt a Resolution amending Resolution No. 10824 (2017 Series) (Attachment A) to extend limited public access to the corporation yard well until January 1, 2019 and reduce the permit fee to $679.50 in accordance with the shortened permit period. 2. Authorize the City Manager to extend public access to the corporation yard well until July 1, 2019, if continued progress towards an alternative water source by San Luis Obispo County can be demonstrated, at an additional fee of $679.50. DISCUSSION Background The City’s corporation yard well was established during the drought of 1987-1991 to serve as a non-potable alternative source of water for construction-related activities (prior to the City’s recycled water program which began delivering water in 2006). Over the years, word spread about the well and it began to see more use. During the last drought, staff learned that people outside of the City were using the well for non-potable uses such as laundry, livestock, irrigation, and toilet flushing. Between June 2015 and July 2017, Council approved policies which allowed limited and temporary access to the corporation yard well. These policies outlined who was approved to access the well, when access would be terminated, and established fees associated with use of the well. Public access to the well is currently scheduled to end on July 1, 2018. Extended Use At the July 18, 2017 City Council Meeting, Council allowed currently permitted outside -City users to retain access to the well, and further directed staff to work with these users to achieve solutions to their water needs. City staff conducted a series of meetings with affected County residents and County of San Luis Obispo staff. These meetings were productive and resulted in identifying feasible solutions for future water supply and delivery options that may be available to County residents. The solution being pursued would involve the County providing water from its State Water allocation and then wheeling this to a filling station near the impacted areas. The examined future supply options would not require the use of the corporation yard well or other City resources. Packet Pg. 67 Item 9 The County-owned filling station is estimated to be online and available for use by the end of 2018. With the 2017-18 winter producing less-than-average rainfall, affected parties have communicated t hat groundwater levels are dropping, with some properties already losing access to groundwater. With the progress that has been made in the past year, staff recommends extending the period in which the corporation yard well can be accessed by approved property owners until January 1, 2019 with an optional additional extension until July 1, 2019 that can be exercised if County resources are not yet available. Due to the shortened permit period, staff recommends reducing the fee amount to $679.50, reflecting half of the previous fee of $1,359. This six-month extension would provide the time needed by the County to have the facility in operation by the end of the year. The optional six -month extension could be exercised if the County experienced unforeseen dela ys in bringing a filling station online. If the extension is permitted, County residents utilizing the well would be required to pay an additional $679.50 reflecting the full annual permit fee. Current Well Use During the current permit period, only seven parties have signed up for access to the corporation yard well and 2.3 acre-feet of water were consumed from July 1, 2017 through April 3, 2018. ENVIRONMENTAL REVIEW The proposed modification of Resolution No. 10824 (2017 Series) (Attachment B) related to the use of the corporation yard well is not a “project” under the California Environmental Quality Act (CEQA) because the action does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378. Even if the contemplated action is a project under CEQA, it is categorically exempt pursuant to CEQA guidelines section 15301, existing facilities. FISCAL IMPACT The extended access period would allow for the current permit program to continue for six additional months. The $679.50 fee would cover costs associated with program management and staffing, as well as costs related to electricity and pump maintenance fo r the corporation yard well. In 2017, this program generated $9,513 in revenue. ALTERNATIVES 1. Do not extend public access to the corporation yard well. 2. Extend public access to the corporation yard well for a single year until July 1, 2019 and leave existing fees in place. Attachments: a - R-10824 (2017 series) b - Amended Resolution - CY Well Packet Pg. 68 Item 9 Packet Pg. 69 Item 9 Packet Pg. 70 Item 9 Packet Pg. 71 Item 9 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE CITY’S PERMIT FEE AND USER REGULATIONS FOR THE USE OF THE CORPORATION YARD NON-POTABLE WELL WHEREAS, the City owns and operates a non-potable groundwater well (the “Well”) located at the City’ s corporation yard; and WHEREAS, the original purpose of the Well was for construction purposes; and WHEREAS, on June 2, 2015, the City adopted Resolution No. 10629 (2015 Series) formally establishing a permit fee and use regulations for the Well. Specifically, the Resolution limited the use of the Well for non-potable purposes for individuals and properties who are locat ed within the San Luis Obispo Valley Groundwater Basin. Use of the Well under Resolution No. 10629 was limited to the period when a drought emergency was declared; and WHEREAS, on June 20, 2017, the City Council formally rescinded the declared drought emergency but directed staff to develop a plan to restrict public access to the Well, update the well permit fee, and work with the County of San Luis Obispo and properties participating in the program to develop a solution that would result in cessation of t he use of the Well by July 1, 2018; and WHEREAS, on July 18, 2017, the City Council adopted Resolution No. 10824 (2017 Series) extending public access to the Well until July 1, 2018 and establishing other rules and regulations such as a permit fee and identifying allowed users of the Well; and WHEREAS, the City worked with the County of San Luis Obispo and properties participating in the program to identify a water source for long-term needs that is not provided by the City. A feasible solution has been identified and is estimated to complete construction by January 1, 2019. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Public access to the Well will be terminated January 1, 2019 unless an additional six-month extension is aut horized by the City Manager. The City Manager is hereby authorized to extend such access for an additional six months if continued progress towards an alternative water source by San Luis Obispo County can be demonstrated. In the event the City Manager ext ends such public use, any authorized County residents who desire to use such Well shall pay an additional permit fee in the amount of $679.50. SECTION 2. The six-month fee for each property to access and use the well is $679.50. Packet Pg. 72 Item 9 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 3. Resolution Number 10824 (2017 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 City Clerk Packet Pg. 73 Item 9 Page intentionally left blank. Packet Pg. 74 Item 9 Meeting Date: 6/5/2018 FROM: Shelly Stanwyck, Parks and Recreation Director Prepared By: Lindsey Stephenson, Parks and Recreation Manager SUBJECT: REVIEW OF THE PUBLIC ART DESIGNS AND LOCATIONS PROPOSED FOR THE 2018 UTILITY BOX ART PROJECT TO PAINT CITY-OWNED UTILITY BOXES. RECOMMENDATION As reviewed and recommended by the Parks and Recreation Commission and Architectural Review Commission, approve the proposed artwork designs and traffic signal box locations for the 2018 Utility Box Art project. DISCUSSION Background Initially conceived as a program to discourage and abate graffiti and to enhance unattractive utility/traffic signal boxes at various high visibility intersections in the Downtown core, the Utility Box Art Program received funding from the City Council in 2010 for sixteen downtown utility boxes. Widespread popularity of the box art program enabled the pilot program to expand. Additional phases of utility box art occurred in 2012 and again in 2016. Currently, the Utility Box Art Program has thirty-nine (39) painted boxes throughout the City. A list of City-owned traffic signal utility box locations is provided as Attachment A. Expansion of Utility Box Art Program The City owns and operates a total of sixty-five (65) traffic signal utility boxes, 26 of which remain unpainted and are eligible for new art murals. In the 2017 -19 Financial Plan, Council adopted public art funding for the continued expansion of box art. Consistent with the City’s adopted Public Engagement and Notification (PEN) Manual, staff launched a Call-For-Artists seeking design proposals from San Luis Obispo County residents. Information about this unique public art opportunity was provided on the City’s website public art page and as a hot -topic, via press release, street banner, artist emails and postcards which were placed in downtown businesses, the Downtown Association, SLO Chamber of Commerce and Arts Obispo. Box Art Selection Jury On March 27, 2018, a Box Art Selection Jury, consisting of a variety of community members, convened to review all box art design proposals and present its proposed selection to the appropriate City Advisory Bodies. The 2018 Box Art Selection Jury included twelve members who are arts advocates, artists, local businesses, historians, community members, and representatives of the City, County of San Luis Obispo and the School District. The Art Jury reviewed over 200 design proposals submitted by local artists and compared these designs for artistic excellence and Packet Pg. 75 Item 10 appropriateness to the location. The 2018 Box Art Jury group roster is provided as Attachment B. Proposed 2018 Box Art Project The 2018 Box Art Project, as proposed by the Box Art Selection Jury, would enhance the remaining twenty-six (26) city-owned utility/traffic control boxes at various locations throughout the community that are unpainted and available for the application of new art murals. The 2018 Box Art project includes design recommendations for these remaining locations as provided in Attachments C and D respectively. CONCURRENCE Advisory Body Review The Parks and Recreation Commission (Attachment E) and the Architectural Review Commission (Attachment F) have reviewed the proposed designs and locations at their respective public meetings on May 2, 2018 and May 7, 2018. The City’s Adviso ry Bodies concur with the Art Jury’s recommendation of proposed designs and locations for the 2018 Box Art Project as consistent with the Community Design Guidelines and adopted Guidelines for Public Art. FISCAL IMPACT As adopted in the 2017-19 Financial Plan, $40,000 of public art funding was approved by the City Council in each of years one and two for the expansion of the Box Art project. The cost of the Box Art painting phase includes the artists’ stipend, preparing for and protecting the box art murals. The 2018 Box Art project will result in the painting of new artwork on the remaining 26 city-owned traffic signal control boxes throughout the City; completing the full expansion of the program to city-owned property. There is sufficient funding in the Public Art fund budgeted to paint the proposed utility traffic signal boxes. Staff will return to Council to seek additional public art funding for any subsequent box art painting. Next Steps Upon Council’s adoption, the 2018 Box Art Project will pr epare the utility boxes for the new art murals with cleaning and priming. It is anticipated that the artists could be out in the community painting the new utility boxes as early as August 2018. Attachments: a - Box Art Intersection Locations b - 2018 BOX ART JURY ROSTER c - 2018 Box Art Recommendations d - 2018 Box Art Locations Map e - PRC 05.02.18 Minutes f - ARC Minutes Draft 05.07.18 Packet Pg. 76 Item 10 BOX ART NUMBERS AND INTERSECTION LOCATIONS (P) = INDICATES PAINTED 1. Marsh/Morro (P) 2. Higuera/Morro (P) 3. Monterey/Morro (P) 4. Marsh/Broad (P) 5. Santa Barbara/South (P) 6. Broad/Pismo (P) 7. Santa Rosa/Palm (P) 8. Santa Rosa/Marsh (P) 9. Pismo/Osos (P) 10. Monterey/Chorro (P) 11. Palm/Chorro (P) 12. Higuera/South (P) 13. Upham/Santa Barbara (P) 14. Grand/California (P) 15. Higuera/Osos (P) 16. Chorro/Higuera (P) 17. Chorro/Marsh (P) 18. Foothill/California (P) 19. Monterey/Santa Rosa (P) 20. Higuera/Broad (P) 21. Santa Rosa/Mill (P) 22. Broad/Pacific (P) 23. Higuera/Nipomo (P) 24. Madonna/Higuera (P) 25. Broad/Buchon (P) 26. Santa Rosa/Higuera (P) 27. Osos/Buchon (P) 28. Palm/California (P) 29. Marsh/Nipomo (P) 30. Monterey/Osos (P)*Replacement by Artist Sara Burke approved in 2016 31. Osos/Marsh (P) 32. Johnson/Palm (P) 33. Johnson/Marsh (P) 34. Foothill/Chorro/Broad (P) 35. Foothill/Tassajara 36. Foothill/Patricia (P) 37. Higuera/Suburban 38. Johnson/San Luis Drive 39. Johnson/Lizzie (P) 40. Johnson/Bishop 41. Johnson/Laurel 42. Higuera/High/Pismo 43. Marsh/Higuera (P) 44. Madonna/El Mercado 45. Madonna/Dalidio 46. Madonna/Oceanaire (P) 47. Madonna/LOVR 48. LOVR/Royal Way 49. LOVR/Laguna Lane 50. LOVR/Descanso 51. Higuera/Margarita 52. Higuera/Prado 53. Higuera/Tank Farm 54. Higuera/LOVR 55. Calle Joaquin/LOVR 56. Granada/Higuera 57. Ella/Johnson 58. Orcutt/Laurel 59. Broad/Orcutt (P) 60. Broad/Industrial 61. Broad/Tank Farm 62. Broad/Aero 63. Tank Farm/Mindbody 64. Mill/California 65. LOVR/Froom Ranch Packet Pg. 77 Item 10 City of San Luis Obispo, Parks and Recreation, 1341 Nipomo Street, San Luis Obispo, CA, 93401-3934, 805.781.7300, slocity.org 2018 BOX ART SELECTION JURY Group List Name Representative Facilitated by the City of San Luis Obispo Public Art Manager, Melissa Mudgett, on March 27, 2018 Name Representative 1. Cindy Lambert History Center SLO 2. Jane Worthy Neighbor / Community Member 3. Meghan Burger Youth Services SLO City / Community Member 4. Sahvanna Ettestad Marketing SLO City 5. Emma Saperstein Cuesta Gallery / Arts Advocate / Artist 6. Jeremy Keollish San Luis Coastal Unified School District / IT 7. Andrew Mora Utilities SLO City 8. Ben Marquat Utilities SLO City 9. Cory Jones Local Business Representative 10. Pam Duffield County of San Luis Obispo Public Works 11. Dennis Smitherman Arts Advocate 12. Carolyn Dougherty Nurse / Community Member Packet Pg. 78 Item 10 4/23/2018 1 2018 Utility BoxArt Project Recommendations Box Art Location Map Packet Pg. 79 Item 10 4/23/2018 2 Location #42 – Higuera/High/Pismo “I HEART SLO” – Drew Davis 2018 Box Art #1 Location #51 – Higuera/Margarita “Coast Rest” – Annie Cappelli 2018 Box Art #2 Packet Pg. 80 Item 10 4/23/2018 3 Location #52 – Higuera/Prado “Wild Weed Beauty” – Marcie Hawthorne 2018 Box Art #3 Location #56 – Granada/Higuera “On the Prowl” – Katharine Tompkin 2018 Box Art #4 Packet Pg. 81 Item 10 4/23/2018 4 Location #53 – S. Higuera/TankFarm “SLO Mission” - Cindy Burnside 2018 Box Art #5 Location #37 – S. Higuera/Suburban “Neighborhood Fruits” – Sally Lamas 2018 Box Art #6 Packet Pg. 82 Item 10 4/23/2018 5 Location #54 – S. Higuera/LOVR “Music About Town” – Marcie Hawthorne 2018 Box Art #7 Location #55 – Calle Joaquin/LOVR “Twilight Tunnels” – Charlie Clingman 2018 Box Art #8 Packet Pg. 83 Item 10 4/23/2018 6 Location #65 – LOVR/Froom Ranch “Happy Cow” – Amy Beeman 2018 Box Art #9 Location #44 – Madonna/El Mercado “Kelp Forest in Balance” – Annie Cappelli 2018 Box Art #10 Packet Pg. 84 Item 10 4/23/2018 7 Location #45 – Madonna/Dalidio “Garden Window” – Elizabeth Hudson 2018 Box Art #11 Location #47 – Madonna/LOVR “Always Ready” – Amy Beeman 2018 Box Art #12 Packet Pg. 85 Item 10 4/23/2018 8 Location #48 – LOVR/Royal Way “The Hotel Prickly Pear” – Sally Lamas 2018 Box Art #13 Location #49 – LOVR/Laguna Lane “Sunny Sisters” – Morgan Wise 2018 Box Art #14 Packet Pg. 86 Item 10 4/23/2018 9 Location #50 – LOVR/Descanso “Prefumo Canyon” – Eric Soderquist 2018 Box Art #15 Location #35 – Foothill/Tassajara “Pacific Cows” – Erin Soderquist 2018 Box Art #16 Packet Pg. 87 Item 10 4/23/2018 10 Location #64 – Mill/California “Bee Journey: Critical Pollinators” – Marcie Hawthorne 2018 Box Art #17 Location #38 – Johnson/San Luis Dr. “Our Sistine Chapel” – Chris Daly 2018 Box Art #18 Packet Pg. 88 Item 10 4/23/2018 11 Location #57 – Ella/Johnson “Oak Grove” – Bobby Boss 2018 Box Art #19 Location #40 – Johnson/Bishop “Sleepy Hollow” – Chris Pedersen 2018 Box Art #20 Packet Pg. 89 Item 10 4/23/2018 12 Location #41 – Johnson/Laurel “Secret Doors” – Elizabeth Hudson 2018 Box Art #21 Location #58 – Orcutt/Laurel “Nitidulidae” – Jacqueline Tardie 2018 Box Art #22 Packet Pg. 90 Item 10 4/23/2018 13 Location #60 – Broad/Industrial “Flower Power” – Marian Galczenski 2018 Box Art #23 Location #61 – Broad/Tank Farm “Night Light of SLO”– Laura Lozano-Larrinaga 2018 Box Art #24 Packet Pg. 91 Item 10 4/23/2018 14 Location #62 – Broad/Aero “Seven Sisters” – Heather Millenaar 2018 Box Art #25 Location #63 – Tank Farm/Mindbody “Mission Bell Blueprint” - Christopher Taylor 2018 Box Art #26 Packet Pg. 92 Item 10 4/23/2018 15Packet Pg. 93 Item 10 !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !( !(65 64 63 62 61 60 58 57 5655 54 53 52 51 50 49 4847 45 42 41 40 38 35 44 37 Sources: Esri, HERE, DeLorme, USGS, Intermap, increment P Corp., NRCAN, Esri Japan, METI, EsriChina (Hong Kong), Esri (Thailand), TomTom, MapmyIndia, © OpenStreetMap contributors, and the GISUser Communityµ0 0.5 1Miles Packet Pg. 94 Item 10 Minutes - DRAFT PARKS AND RECREATION COMMISSION 02 May 2018 Regular Meeting of the Advisory Body Commission CALL TO ORDER A Regular Meeting of the Parks and Recreation Commission was called to order on the 2nd day of Ma y 2018 at 5:30 p.m. in the Parks and Recreation Administration Conference Room located at 1341 Nipomo Street , San Luis Obispo, California, by Chair Avakian. ROLL CALL Present: Chair Avakian, Vice Chair Thurman, Commissioner Olson. Commissioners, Keri Schwab, Bob Spector, Shay Stewart Absent: Kari Applegate Staff: Parks and Recreation Director Shelly Stanwyck Recreation Manager Facilities and Aquatics Devin Hyfield Administrative Analyst, Lindsey Stephenson Recreation Supervisor, Dave Setterlund PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA None CONSENT AGENDA AND CONSIDERATION OF MINUTES ACTION: APPROVAL OF THE REGULAR MEETING MINUTES OF THE PARKS AND RECREATION COMMISSION FOR APRIL 11, 2018. 1. Consideration of Minutes CARRIED 6:0:0:1 to approve the minutes of the Parks and Recreation Advisory Body for the regular meeting of 4/11/18 as motioned by STEWART and second by OLSON. AYES: AVAKIAN, THURMAN, OLSON, SCHWAB, SPECTOR, STEWART NOES: NONE ABSTAIN: NONE ABSENT: APPLEGATE Packet Pg. 95 Item 10 DRAFT Minutes – Parks and Recreation Commission Meeting of May 2, 2018 Page 2 REORDERED AGENDA. Given the number of attendees, the Chair discussed hearing item number three first. STEWART moved with a second by SCHWAB to hear Agenda Item Number Three prior to item Number 2. CARRIED 6:0:0:1 to modify the Parks and Recreation Commission agenda swapping placement of Items 2 and 3. AYES: AVAKIAN, THURMAN, OLSON, SCHWAB, SPECTOR, STEWART NOES: NONE ABSTAIN: NONE ABSENT: APPLEGATE 3. Consideration and Approval of Dodgeball as Year-Long Use Staff Setterlund presented a potential new program partnership with the Parks and Recreation Department to offer dodgeball at the Ludwick Community Center every Thursday from 5:30-7 PM. This program would provide a much-needed activity for an unmet demographic. Public Comment Emily Ewer, SLO resident, commented the consistent schedule will benefit the growth of the sport. Christie O’Hara, SLO Resident, commented on her history with the dodgeball organization and young adult involvement within the community. Commented on the active benefits of the sport. Commission Comments followed Commissioner Stewart asked about fees associated with other programs at the facility. Followed up with questions about longer term vision for the structure of the program or if it will stay as more of a drop-in program. Would like to see more structure to the program at the end of pilot year to continue as a partnership. Commissioner Spector asked about the agreement and setting the language with the one - year pilot program. Vice Chair Thurman asked about the impact to other facility reservations if approved. Chair Avakian asked questions regarding the liability and waivers to cover the City. Followed up with the expansion plan for the program. Packet Pg. 96 Item 10 DRAFT Minutes – Parks and Recreation Commission Meeting of May 2, 2018 Page 3 ACTION: CONSIDER AND APPROVE OF THE PARKS AND RECREATION DEPARTMENT’S AGREEMENT WITH SLO DODGEBALL TO FACILITATE A YEAR-LONG USE OF THE LUDWICK COMMUNITY CENTER FOR ADULT DODGEBALL PLAY, MOTION BY COMMISSIONER STEWART, SECOND BY COMMISSIONER SPECTOR. CARRIED 6:0:0:1 to approve the agreement with SLO Dodgeball and use of the Ludwick Community Center. 2. Appointment of Chair and Vice Chair of Parks and Recreation Commission and Representatives to Jack House and Tree Committees and Liaison Roles Schwab nominated Commissioner Avakian to serve as Chair and Commissioner Thurman to serve as Vice Chair of the Parks and Recreation Committee and *** Seconded. ACTION: BY CONSENSUS, THE COMMITTEE APPOINTED COMMISSIONER AVAKIAN CHAIR OF PARKS AND RECREATION COMMISSION AND COMMISSIONER THURMAN VICE-CHAIR OF PARKS AND RECREATION COMMISSION. CARRIED 6:0:0:1 to appoint Commissioner Avakian as Chair and Commissioner Thurman as Vice Chair of the Parks and Recreation Commission. AYES: AVAKIAN, THURMAN, OLSON, SCHWAB, SPECTOR, STEWART NOES: NONE ABSTAIN: NONE ABSENT: APPLEGATE By consensus, the Committee selected subcommittee appointments. Committee Liaison Adult and Senior Programming Spector Active Transportation (formally Bicycle Advisory) Olson City Facilities (Damon-Garcia, golf, pool, joint use) Applegate (TBD) Jack House Committee Schwab Tree Committee Thurman Youth Sports Association Stewart MOTION to approve change subcommittee appointments of Commissioner Schwab from Youth Sports Association to Jack House Committee as motioned by STEWART and second by SPECTOR. 4. Presentation. Monthly Update Parks and Recreation Element and Master Plan Project Packet Pg. 97 Item 10 DRAFT Minutes – Parks and Recreation Commission Meeting of May 2, 2018 Page 4 Director Stanwyck provided an update on the Parks and Rec Element and Master plan project highlighting the meetings held between WRT and community members. WRT will be working on a statistically valid survey and the public workshop meeting is set for Thursday, September 13. Throughout the summer, Parks and Recreation will be holding various pop-up events throughout the City will assist to promote to the community the public workshop meeting in September. Staff intends to gather as many emails from the community to promote the meeting to maximize attendance and target events towards the SLO community. Public Comment None Commission Comments followed Commissioner Spector wants to make sure that the non-represented groups are captured, including drop-in park users. Commissioner Olson asked if the staff will be holding events in neighborhoods as well as events during the summer. Chair Avakian asked if the stakeholder meetings held with WRT were well attended. 5. Presentation. Review the 2018 Box Art Project Designs and Locations Staff Stephenson presented and overview of the 2018 Box Art Project with the designs and locations of each box art project to be completed. 13 members represented the Art Jury and chose 26 of box arts to complete the rema ining boxes within the City. Painting will begin August 23 and continue through September 26. Public Comment None Commission Comments followed Commissioner Stewart asked if there was box art publicity within the visitor’s center for tourist. Commissioner Spector commented that the box art can be added to Art After Dark program. Commissioner Olson asked if there is a problem with graffiti with box art. Vice Chair Thurman asked if there were any future plans for art projects. Suggested some railroad overpasses as future project s. Chair Avakian asked how if the artist were able to choose the box they wanted to paint . Asked about longevity and life expectancy of box art. COMMITTEE COMMUNICATIONS Packet Pg. 98 Item 10 DRAFT Minutes – Parks and Recreation Commission Meeting of May 2, 2018 Page 5 6. Director’s Report Director Stanwyck provided a brief update of current Parks and Recreation programming. • Parks and Rec has gone through some staff transitions this past month. Four full- time staff positions will be beginning May 17. • Kiwanis community garden is now open at the Laguna Lake golf course. First recycled water community garden in the state. • Rangers have been working on Bishop’s peak to mitigate the plan growth for fire prevention. • Parks and Rec staff getting ready for summer progr ams. • Staff getting ready for 2020 Strategic plan summit for updated progress reports. • City Council adopted Fiscal Health Response Plan in Apri l. LIAISON REPORTS 7. Subcommittee Liaison Reports • Adult and Senior Programming: Commissioner Spector has researched the different difference in the senior adult groups and the gap between the different senior groups. Through the City planning process, develop the Senior Center into an Adult resource center to service the above 50 SLO community. Use resources through the community groups to assist with the creation of the broad range of senior services at the Senior Center. • Active Transportation Committee: Commissioner Olson informed the committee that May is Bike month and that May 18 is ride your bike to work day. • City Facilities (Damon Garcia, Golf, Pool & Joint Use Facilities): Chair Avakian reported that spring swim lessons are in session and summer registration begins May 7. Damon-Garcia is closed. Junior Giants registration is open with over 100 registrants. SLO Tri scheduled for July 22. • Jack House Committee. Vacant. No Report. • Tree Committee: Vice Chair Thurman reported that some downtown ficus will be kept but some replaced with more local trees. Fit pocket parks in downtown with appropriate trees. Opportunity to volunteer with Downtown Foresters group, meets one Saturday per month. Email Rodney for more details • Youth Sports Association: Commissioner Schwab recapped the YSA meeting held in April. YSA discussed field use between the various sports and how they can promote fields through the element process. 8. Commission Communications Vice Chair Thurman would like to see a program that connect parks, trees and users through naming a tree program and increase the knowledge of the trees regarding growth, seasons, and heritage. ADJOURNMENT The meeting adjourned at 7:28 p.m. to the next Rescheduled Regular meeting of the Parks and Recreation Commission held on June 06, 2018 at 5:30 p.m., at the Parks and Recreation Office, 1341 Nipomo St, San Luis Obispo, California. Packet Pg. 99 Item 10 DRAFT Minutes – Parks and Recreation Commission Meeting of May 2, 2018 Page 6 APPROVED BY THE PARKS AND RECREATION COMMISSION: 6/06/18 Packet Pg. 100 Item 10 Minutes - DRAFT ARCHITECTURAL REVIEW COMMISSION Monday, May 7, 2018 Regular Meeting of the Architectural Review Commission CALL TO ORDER A Regular Meeting of the Architectural Review Commission was called to order on Monday, May 7, 2018 at 5:01 p.m. in the Council Chambers, located at 990 Palm Street, San Luis Obispo, California, by Chair Root. ROLL CALL Present: Commissioners Richard Beller, Brian Rolph (5:02), Christie Withers, Vice-Chair Amy Nemcik, and Chair Allen Root Absent: Commissioners Angela Soll and Micah Smith Staff: Deputy Director Doug Davidson, Associate Planner Rachel Cohen, Assistant Planner Walter Oetzell, and Recording Secretary Summer Aburashed PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA None --End of Public Comment-- PUBLIC HEARINGS 1. Citywide. Review of public art designs and locations proposed for the 2018 Utility Box Art project, which consists of the painting of 26 City-owned traffic signal control boxes at various locations within the public right-of-way throughout the City of San Luis Obispo, with a categorical exemption from environmental review (California Environmental Quality Act [CEQA] Guidelines Section 15301, Existing Facilities) Case #: ARCH-1494- 2018, City of San Luis Obispo Parks and Recreation Department, applicant. Administrative Analyst of the Parks & Recreation Department, Lindsey Stephenson provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comments: James Lopes Packet Pg. 101 Item 10 DRAFT Minutes – Architectural Review Commission Meeting of May 7, 2018 Page 2 --End of Public Comment-- ACTION: MOTION BY COMMISSIONER BELLER, SECOND BY COMMISSIONER WITHERS, CARRIED 5-0-2 to adopt a Resolution entitled: A RESOLUTION OF THE ARCHITECTURAL REVIEW COMMISSION OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, FINDING THAT THE PROPOSED PUBLIC ART PROGRAM ENTITLED “2018 UTILITY BOX ART” MEETS THE CITY’S GUIDELINES FOR PUBLIC ART FOR 26 UTILITY BOXES LOCATED IN THE RIGHT-OF-WAY CITYWIDE, AND RECOMMENDING THE CITY COUNCIL APPROVE THE “2018 UTILITY BOX ART” PROJECT, AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED MAY 7, 2018 (CITYWIDE, ARCH-1494-2018), as presented. 2. 790 Foothill. Review of a new four-story mixed-use project with 6,800 square feet of ground floor commercial/retail space, 78 residential units, and 155 parking spaces. Twelve of the units in the project will be affordable to very-low income households, which allows for a 35% density bonus. Two affordable housing incentives are being requested including the construction of a 43-foot tall structure where 35 feet is normally allowed and an increase in allowable lot coverage from 75% to 90%. The project is both statutorily exempt under Section 15195 and categorically exempt under Class 32, In-Fill Development Projects, Section 15332 of the CEQA Guidelines, Case #: ARCH-1186- 2017, C-C-SF zone; LR Real Estate Investment Group, LCC. Loren Riehl, applicant. Associate Planner Rachel Cohen presented the staff report with the use of a PowerPoint presentation and responded to Commissioner inquiries. Architect Thom Jess and applicant, Laruen Reel provided a presentation and responded to Commissioner inquiries. Public Comments: Anne Brown Odile Ayral Dave Hannings Carolyn Smith David Hafemeista T. Keith Gurnee Genevieve Chech James Lopes Allen Cooper Laura Kirschner Cheryl McLean Larry Shields Laurel Waddell Packet Pg. 102 Item 10 DRAFT Minutes – Architectural Review Commission Meeting of May 7, 2018 Page 3 Lydia Mourenza Grant Robbins Magnolia Stork --End of Public Comment-- RECESS: The Commission recessed at 6:52 p.m. and reconvened at 7:00 p.m. with all Commissioners present. ACTION: MOTION BY VICE CHAIR NEMCIK, SECOND BY COMMISSIONER WITHERS CARRIED 5-0-2 to continue to a date uncertain with the following direction: • Address the massing of the structure in relation to the surrounding views by breaking up the building and providing more articulation. • Provide significant cornice/parapet detailing and articulation. • Break up the structure to reduce the overall bulk of the project and gives the appearance of separate buildings. • Address the blank, poorly articulated walls along Chorro Street and provide a better sense of human scale and proportion; do something special to this façade. • The project should be balanced and in proportion. • Consider ways to reduce the height or the appearance of height; step back the 4th floor. • Design the project to be compatible with the fundamental character of the surrounding neighborhood. • Revise the use of the wood material to the sidewalk; consider the use of a bulkhead made of durable material. • Add accents of color (outside the proposed earth tones) to awnings, doors or other architectural details to add interest. • The project should avoid using corridors to provide access to the units and main entrances to individual units should be from adjoining streets. Distinctive architectural elements and materials should be used to highlight primary entrances. • Provide clear site and elevation sections of the project, with dimensions called out, and show the adjacent structures; show the setback of the project from the adjacent structures. The ARC also provided the following comments: • Suggest City Council look at a different variety of affordable housing options (e.g. 3 two-bedrooms, 3 one-bedrooms, and 2 studios) • Park the project based on reconfigured/split bedrooms. • Consider adding a condition to not allow the division of bedrooms or double doors. Packet Pg. 103 Item 10 DRAFT Minutes – Architectural Review Commission Meeting of May 7, 2018 Page 4 3. 1148 Fernwood. Construction of a new multi-family development containing five 2- bedroom dwelling units, with a categorical exemption from environmental review, Case #: ARCH-1148-2017, R-3, zone; Villas at Fernwood LLC, applicant. Assistant Planner Walter Oetzell presented the staff report with the use of a PowerPoint presentation and responded to Commissioner inquiries. Applicant’s representative, Brian Ridley, provided a presentation and responded to Commissioner inquires. Public Comments: Seth Nevschwander Russ Stireman Don Kinney --End of Public Comment-- ACTION: MOTION BY COMMISSIONER ROLPH, SECOND BY COMMISSIONER WITHERS, CARRIED 4-1-2 to adopt a Resolution entitled: A RESOLUTION OF THE ARCHITECTURAL REVIEW COMMISSION OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING PLANS FOR A NEW MULTI-FAMILY BUILDING WITH FIVE (5) DWELLING UNITS FOR THE PROPERTY LOCATED AT 1148 FERNWOOD DRIVE, as presented With the following recommendations: Modify the east building elevation for better compatibility with the adjacent single-family neighborhood. Pull the upper portion of the tall wall feature back about 5 feet or so, to provide better articulation and resolve the awkwardness of the “split gable” feature. This area is only used for loft space, which will facilitate the necessary modification. Create a 3-dimensional rendering of the front (street frontage) of the building to depict its appearance from the street in a more understandable way. Add a condition addressing the selection of tree species that are appropriate to site conditions, as recommended by the City Arborist. COMMENT AND DISCUSSION Deputy Director Davidson provided a brief agenda forecast. ADJOURNMENT Packet Pg. 104 Item 10 DRAFT Minutes – Architectural Review Commission Meeting of May 7, 2018 Page 5 The meeting was adjourned at 8:43 p.m. The next Regular meeting of the Architectural Review Commission is scheduled for Monday, May 21, 2018 at 5:00 p.m., in the Council Hearing Room, 990 Palm Street, San Luis Obispo, California. APPROVED BY THE ARCHITECTURAL REVIEW COMMISSION: XX/XX/2018 Packet Pg. 105 Item 10 Page intentionally left blank. Packet Pg. 106 Item 10 Meeting Date: 6/5/2018 FROM: Garret Olson, Fire Chief Prepared By: Rodger Maggio, Fire Marshal SUBJECT: RESOLUTION AUTHORIZING THE COUNTY’S COLLECTION OF FIRE AND LIFE SAFETY INSPECTION FEES RECOMMENDATION Adopt a resolution enabling the continued collection of multi-dwelling property fire and life safety inspection fees via the secured property tax roll administered by the County. DISCUSSION In May 2005, the Council approved a cost recovery program for State -mandated fire and life safety inspections for multi-dwelling properties with three or more units. As part of this program, on June 7, 2005, the Council adopted Ordinance No. 1472 authorizing the collection of annual fees for these inspections through the secured County property tax roll as the most cost- efficient method for fee collection. In June 2017, the Council approved a change on how fees for apartment buildings, hotel/motels, and sorority/fraternity inspections are calculated. The result was an increase from approximately $194,000 per year in total revenue to approximately $260,000. This change is reflected in Exhibit A to the attached resolution. Staff is not recommending any further changes in the current fees for 2018-19. However, the County requires an annual resolution adopted by the Council authorizing the continued collection of these fees on the property tax roll. Staff is recommending that the fee collection continue to be done through the secured property tax roll in 2018-19 and is requesting that Council adopt the required resolution to authorize that collection. CONCURRENCES The Finance Department concurs with the recommendation. 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” u nder CEQA Guidelines sec. 15278. FISCAL IMPACT In fiscal year 2017-18, the City is scheduled to collect $260,000. There would be no direct cost impact to the City, projected fiscal year revenue of $265,000 is included in the 2018-19 Supplemental Budget . Packet Pg. 107 Item 11 ALTERNATIVE Do not adopt the resolution and go to a less cost-effective billing system by the Finance Division, which would require additional staff time and resources dedicated to billing and collecting fees, thus negatively impacting the total revenue provided through this program. Attachments: a - Resolution (2018 Multi-dwelling Fee) Packet Pg. 108 Item 11 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE SAN LUIS OBISPO COUNTY AUDITOR TO COLLECT FEES FOR 2018-19 FIRE AND LIFE SAFETY INSPECTIONS OF MULTI-DWELLING PROPERTIES CONTAINING THREE OR MORE DWELLING UNITS ON THE SECURED PROPERTY TAX ROLL PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54988, ET SEQ. WHEREAS, the City of San Luis Obispo is required by California Health & Safety Code Section 17921 annually to inspect multi-dwelling properties containing three or more dwelling units, including apartment s, certain residential condominiums, hotels, motels, lodging houses, and congregate residences; and WHEREAS, California Health & Safety Code Section 13146.2 authorizes cities to charge property owners for recovering the reasonable costs of providing these annual inspections; and WHEREAS, in accordance with this policy, the Council adopted Resolution No s. 9799 (2006 Series) and 10790 (2017 Series) updating the master fee schedule, as specifically set forth in “Exhibit A” hereto , and authorizing the collection of these fees on the secured property tax roll; and WHEREAS, the Council desires to continue collection of these fees on the secured property tax roll for 2018-19: NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Pursuant to California Health & Safety Code Section 13146.2(b) and Municipal Code Section 3.50, the Council hereby authorizes and directs that Fire and Life Safety Inspection fees shall be collected on the secured property tax roll by the San Luis Obispo County Audit or-Controller for fiscal year 2018-19. A listing of fees by assessor’s parcel number shall be provided to the County Auditor-Controller for collection on the 2018-19 secured property tax roll in accordance with their schedu le and data format requirements, pursuant to California Government Code 54988, et seq. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2018. Packet Pg. 109 Item 11 Resolution No. _____ (2018 Series) Page 2 R ______ ____________________________________ 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 Packet Pg. 110 Item 11 Resolution No. _____ (2018 Series) Page 3 R ______ EXHIBIT A Multi-Dwelling Fire and Life Safety Inspection Fee Schedule Administrative Fee Processing per facility $86.51 Each Additional Owner $10.27 Apartment Houses Up to 10 Units $346.06 11- 20 Units $519.09 21- 50 Units $692.12 51- 100 Units $865.15 101- 200 Units $1,384.24 Every additional 100 Units over 200 $348.08 Condominiums Up to 10 Units $346.06 11- 20 Units $519.09 21- 50 Units $692.12 51- 500 Units $1,038.18 Fees are waived for units that are built, owned and managed by the San Luis Obispo Housing Authority, other governmental agencies or not -for-profit housing organizations. Hotels, Motels, Lodging Houses, Bed & Breakfast Facilities, Youth Hostel Facilities, Senior Facilities, Sororities, Fraternities and Other Congregate Residences 1 - 20 units $346.06 per year per facility 21 - 50 units $519.09 per year per facility 51-100 units $865.15 per year per facility 101-200 units $1,384.24 per year per facility Sorority, Fraternity, Congregate house $692.12 These fees are applicable to all multi-dwelling units in the City based on the following definitions as set forth in the 2016 California Building Code, Chapter 2: Definitions and Abbreviations, Section 202 and Chapter 3, Section 310. Packet Pg. 111 Item 11 Resolution No. _____ (2018 Series) Page 4 R ______ Apartment house is any building, or portion thereof, which contains three or more dwelling units, including R-2 residential condominiums. Congregate residences are any building or portion thereof that contains facilities for livin g, sleeping and sanitation, as required by this code, and may include facilities for eating and cooking, for occupancy by other than a family. A congregate residence may be a shelter, convent, monastery, dormitory, fraternity or sorority house, but does not include jails, hospitals, nursing homes, hotels, or lodging houses. Dwelling unit is any building or portion thereof that contains living facilities, including provisions for sleeping, eating, cooking and sanitation, as required by this code, for not more than one family, or a congregate residence for ten or less persons. Hotel is any building containing six or more guest rooms intended or designed to be use, or which are used, rented or hired out to be occupied, or which are occupied for sleeping purposes by guests. Lodging house is any building or portion thereof containing not more than five guest rooms where rent is paid in money, goods, labor or otherwise. (A lodging house includes bed & breakfast facilities and hostels, but excludes single family dwellings). Motel shall mean the same as hotel as defined in this code. Packet Pg. 112 Item 11 Meeting Date: 6/5/2018 FROM: Daryl R. Grigsby, Public Works Director Prepared By: Shelsie Kloepper, Project Manager SUBJECT: LOS OSOS VALLEY ROAD / U.S. 101 INTERCHANGE LANDSCAPING, SPECIFICATION NO. 91435 RECOMMENDATION 1. Approve the project plans and specifications for the Los Osos Valley Road / U.S. 101 Interchange Landscaping Project, Specification Number 91435; 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 $400,000. DISCUSSION Background The Los Osos Valley Road Interchange (LOVR) project began construction in the Fall of 2014 and was completed in 2016. This landscaping project is a required environmental mitigation of the overall Los Osos Valley Road Interchange Project and is a joint effort between Caltrans and the City. This project was designed by Oasis Associates Inc. under the direction of the City and Caltrans. To establish the specific roles and responsibilities of Caltran s and the City during project implementation, a Cooperative Agreement (Agreement 05 -0312) has been completed by Caltrans and City staff and was approved by Council on July 12, 2016. Landscaping will be provided along both sides of the new bridge as well as the planting area adjacent to the on- and off-ramps from U.S. 101. Existing trees shall remain and be protected during construction. New plantings will include trees and shrubs within new mulched areas. All new plantings shall be monitored and mainta ined for a required three-year establishment period. New planting will be irrigated with recycled water. ENVIRONMENTAL REVIEW An Initial Study with Mitigated Negative Declaration, State Clearing House Number 2008061098, was approved by Caltrans in August 2011 for the Los Osos Valley Road Interchange Project. This landscaping project is a mitigation requirement of the environmental document. No further environmental review is required for this phase of the project. Packet Pg. 113 Item 12 FISCAL IMPACT The LOVR Interchange project was originally identified in the 2013-2015 Financial Plan, Appendix B - Capital Improvements Plan, page 3-252 through 3-255. Council approved the project financing on June 10, 2014. The project was primarily grant funded, with bond financing cover ing the remaining cost. The LOVR Interchange Landscaping Project is funded through the remaining bond balance as this cost was included in the overall Interchange project budget. The Los Osos Valley Road and U.S. 101 Interchange Landscaping Project is estimated at $400,000. The account for the LOVR Interchange project (99821) has a current bond funded balance of $1,039,943. This remaining account balance is intended to fund this landscaping project (Spec. No. 91435) and an off-site mitigation project (Spec. No. 91550). The table below shows a summary of the cost estimate for the landscaping project and the remaining bond balance. Construction Estimate $400,000 Contingency (20%)$80,000 Construction Subtotal $480,000 Construction Management (12%)$57,600 Total for Project $537,600 Total LOVR Interchange Project Balance (Spec 99821, 405 Fund)$1,039,944 Estimate for Landscaping Project (Spec. 91435)-$537,600 Estimate for Off-site Mitigation Project (Spec. 91550)-$220,000 Net After Remaining Projects $282,344 Los Osos Valley Road / U.S. 101 Interchange Landscpaing Project - Specification No. 91435 - Project Cost Estimate As shown in the table, the proposed project is within the current budget of the Los Osos Valley Road and U.S. 101 Interchange Project. ALTERNATIVE Deny Authorization to Advertise. The Council could choose to deny authorization to advertise. This is not recommended since the landscaping improvements are environmental requirements of the Los Osos Valley Road / U.S. 101 Interchange Project. Attachments: a - Council Reading File - Project Plans b - Council Reading File - Special Provisions Packet Pg. 114 Item 12 Meeting Date: 6/5/2018 FROM: Michael Codron, Community Development Department Prepared By: Cassia Cocina, Acting Code Enforcement Supervisor SUBJECT: ADOPTION OF AN ORDIN ANCE AMENDING CHAPTER 1.24 (ADMINISTRATIVE CODE ENFORCEMENT PROCEDURES) OF TITLE 1 TO THE SAN LUIS OBISPO MUNICIPAL CODE RECOMMENDATION Adopt Ordinance 1648 (2018 Series) (Attachment A) amending Chapter 1.24 (Administrative Code Enforcement Procedures) of Title 1 to the San Luis Obispo Municipal Code . DISCUSSION On May 15, 2018 the City Council voted 5:0 to introduce Ordinance 1648 to amend Chapter 1.24. The amendments of Chapter 1.24 include the following: 1. Late payment fee assessed on delinquent citations at an interest rate of 8% per month until paid. The fee will recover costs associated with collectio n and help encourage timely payments. 2. Clarification for repeat violations which may occur over multiple properties. This clarification will allow higher penalties on subsequent violations without requiring additional notification. 3. Recording Notice of Violation on the property’s title. This will serve as a notice to any person performing due diligence prior to purchasing a property that outstanding violations exist. Once violations are corrected, a notice of compliance will be recorded on the property. The Ordinance is now ready for adoption and the amendment to Chapter 1.24 will become effective July 5, 2018. ALTERNATIVES 1. Continue the proposed ordinance. The City Council may continue action if more information is needed. Direction should be given to staff regarding additional information needed to make the decision. 2. Reject the proposed ordinance. The City Council may reject the proposed ordinance although this would limit code enforcement effectiveness. Attachments: a - Ordinance 1648 Packet Pg. 115 Item 13 O 1648 ORDINANCE NO. 1648 (2018 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 1.24 (ADMINISTRATIVE CODE ENFORCEMENT PROCEDURES) OF TITLE 1 TO THE SAN LUIS OBISPO MUNICIPAL CODE NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 1.24.050, subsection E of the San Luis Obispo Municipal Code is hereby amended as follows: E. Prior and Repeat Violations. The city may take into consideration the fact that a person has been previously issued an uncorrected notice of violation and/or a sustained administrative citation when the city is determining whether to accept an application or to grant any permit, license or any similar type of land use approval for that person and such notice of violation and/or administrative citation may be used as evidence that the person has committed acts that are not compatible with the health, safety, and general welfare of other persons and businesses within the city. Repeated violations by the same person or the same property of the same code provision within any twelve-month period may result in the issuance of an administrative citation(s) imposing additional or escalated administrative fines without a notice of violation and/or notice to correct preceding the citation. SECTION 2. Section 1.24.070, subsection C is hereby added to the San Luis Obispo Municipal Code as follows: C. Late Payment Charges. Any person who fails to pay to the City any fine imposed pursuant to this chapter on or before the date that fine is due also shall be liable for interest accrued at a rate of 8% per month until paid. SECTION 3. Sections 1.24.160 through 1.24.200 are hereby added to the San Luis Obispo Municipal Code as follows: 1.24.160 Issuance and recordation of notices of violation. This chapter shall govern the procedures relating to the recordation of administrative notices of violation. 1.24.170 Procedures for recordation. A. Once the director has issued a notice of violation to a responsible person and the property remains in violation after the deadline established in the notice of violation, the director may record a notice of violation with the Recorder’s O ffice of San Luis Obispo County. Packet Pg. 116 Item 13 Ordinance No. 1648 (2018 Series) Page 2 O 1648 B. Before recordation, the director shall provide to the responsible person a letter of intent to record a notice of violation unless a written appeal is filed pursuant to the procedures outlined in this chapter. The letter shall be served pursuant to any of the methods of service set forth in Chapter 1.24 of this code. The director may also send a courtesy copy of the letter to any financial institution with a legal interest in the real property. C. If a written appeal is not filed pursuant to the procedures set forth in this chapter, the director may record the notice of violation if the violation has not been corrected. D. The recorded notice of violation shall include the name of the property owner, the property’s assessor’s parcel number, the parcel’s legal description, and a copy of the notice of violation. 1.24.180 Service of recorded notice of violation. A copy of the recorded notice of violation shall be served on the responsible person and property owner pursuant to any of the methods of service set forth in Chapter 1.24 of this code. 1.24.190 Notice of compliance – Procedures. A. After a notice of violation has been recorded, and after the violations listed on the notice of violation have been corrected, the responsible person or property owner may file with the director a written request for a reinspection of the property to determine compliance with the municipal code and applicable state codes listed in the recorded notice of violation, and for the issuance of a notice of compliance on a form provided by the city. B. Once the director receives this request, the director shall reinspect the property to determine whether the violations listed in the notice of violation have been corrected and whether all necessar y permits have been issued and final inspections have been performed. C. The director shall serve a notice of compliance to the responsible person or property owner in the manner provided in Chapter 1.24 of this code if the director determines that: 1. All violations listed in the recorded notice of violation have been corrected; and 2. All necessary permits have been issued and finalized; and 3. All civil penalties assessed against the property have been paid; and Packet Pg. 117 Item 13 Ordinance No. 1648 (2018 Series) Page 3 O 1648 4. The party requesting t he notice of compliance has paid an administrative fee in an amount set by resolution of the City Council to reimburse the city for all administrative costs related to the request for a notice of compliance. Upon finding that the conditions above have been satisfied, the director shall record the notice of compliance with the County Recorder’s Office. The recordation of the notice of compliance shall have the effect of canceling the recorded notice of violation. D. If the director denies a request to issue a notice of compliance, the director shall serve the responsible person or property owner with a written explanation setting forth the reasons for the denial. The written explanation shall be served by any of the methods of service listed in Chapter 1.24 of this code. E. The director’s decision denying a request to issue a notice of compliance shall be final and non-appealable. 1.24.200 Prohibition against issuance of permits. Subject to the exception set forth herein, the city may withhold any permit for any alteration, repair or construction pertaining to any existing or new structures or signs on a property where a notice of violation is recorded, or any permits pertaining to the use and development of the real property or the structure. The city ma y thereafter withhold permits until a notice of compliance has been issued by the director. The city may not withhold permits which are necessary to obtain a notice of compliance or which are necessary to correct serious health and safety violations. SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validit y or enforcement of the remaining portions of this Ordinance, or any other provisions of the city’s rules and regulations. It is the city’s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. Packet Pg. 118 Item 13 Ordinance No. 1648 (2018 Series) Page 4 O 1648 SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the 15th day of May, 2018, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 5th day of June, 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 Packet Pg. 119 Item 13 Page intentionally left blank. Packet Pg. 120 Item 13 Meeting Date: 6/5/2018 FROM: Daryl Grigsby, Director of Public Works Prepared By: Violeta Esparza-Reniere, Engineer III SUBJECT: SEWER-LINING 2016, SPECIFICATION NO. 91421 RECOMMENDATION 1. Approve Plans and Specifications Sewer Lining 2016, Specification No. 91421; and 2. Authorize staff to advertise for bids and authorize the City Manager to award the construction contract if the lowest responsible bid is within the Public Disclosed Funding Amount of $606,500. DISCUSSION Replacement and rehabilitation of wastewater collection pipes is part of an ongoing program to maintain aging and deteriorating infrastructure. This program has several objectives: 1) ensure reliable removal of waste; 2) reduce the need for emergency repairs; 3) reduce the need for preventive maintenance; and 4) ensure uninterrupted wastewater flow without health hazard or effluent leakage. This project will accomplish these objectives for part of the City’s wastewater collection system. The existing pipes planned for rehabilitation work have been video inspect ed and confirmed to have reached the end of their useful life and are excellent candidates for the cure-in-place pipe (CIPP) polyester lining. CIPP is a trenchless rehabilitation method used to repair and extend the useful life of pipes. The CIPP process consists of inserting a resin-saturated tube into the pipeline. The resin hardens and creates a new pipe within the existing pipe, with sufficient capacity to handle projected flowrates. In order to ensure the quality of CIPP work, electro scanning testing is completed to verify the quality of the installation. There are many advantages of using the CIPP method in lieu of traditional open trench replacement methods. CIPP lining of the existing pipe will result in a reduced construction period as compared t o traditional open trench replacement construction, and it will be less disruptive to traffic, residents, and businesses. The proposed project will rehabilitate 4,350 feet of existing sewer pipe in five different locations. The project is divided into a base bid with two additive alternates. The base bid work is planned for an easement area adjacent to Chorro Street, and Benton Easement. The additive alternate locations are planned for the Broad and Mission segment, and Mill Street. ENVIRONMENTAL REVEW 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 Develo pment Department. Packet Pg. 121 Item 14 FISCAL IMPACT This project is identified in the 2015-17 Financial Plan, on page 3-57 as part of the approved Wastewater Collection System Improvements projects. The project is structured with a Base Bid and two Additive Alternatives to maximize the scope of the rehabilitation 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 $606,500 in compliance with Public Contract Code Section 20103.8(c). The Base Bid portion includes the Benton and Chorro Easements. The additive alternatives include additional lining on Mission Lane and Mill Street. As outlined below, $695,000 was identified for the project. The Collection System Improvements Master account (90239) currently has a balance of $2,710,000 to support this request. A budget amendment request will be processed to transfer the appropriate project funding to the Sewer Lining 2016 project (91421) from the master account at the time of contract award. Sewer Lining 2016, Specification #91421 Base Bid Estimate:$233,700 Additive Alternate A Estimate:$184,300 Additive Alternate B Estimate:$188,500 Total Project Estimate: $606,500 Contingencies:$83,000 Material Testing:$5,000 Printing and Misc:$500 Total Project Estimate $695,000 Collection System Impr.Master Account (90239) Current Balance:$2,710,000 Remaining Balance after Project:$2,015,000 ALTERNATIVE Deny authorization to advertise. The City Council may choose not to authorize project advertisement. Staff does not recommend this alternative. Further delay of rehabilitating these segments of waste water collection sewer pipe will only increase the costs associated with the maintenance, emergency repair after complete failure and construction phase of work. Attachments: a - Council Reading File - 91421 Sewer Lining Project 2016 Specials b - Council Reading File -91421 Sewer Lining Project 2016 Plans Packet Pg. 122 Item 14 Meeting Date: 6/5/2018 FROM: Garret Olson, Fire Chief Prepared By: James Blattler, Administrative Analyst SUBJECT: FIRE MUTUAL AID REIMBURSEMENT RESOLUTION AMENDMENT RECOMMENDATION Amend Resolution No. 10624 (2015 Series) to expand the City’s ability to seek full reimbursement for -eligible mutual aid responses to fires and other disasters by including “portal to portal” compensation for all Fire Department employees. DISCUSSION The San Luis Obispo City Fire Department participates in out-of-county mutual aid responses when requested. Typically, these requests come through a State of California Coordination Center. With few exceptions, responses to disasters in other counties are eligible for reimbursement through the State or Federal government. When responding sworn personnel, the San Luis Obispo City Fire Department incurs costs from “portal to portal,” meaning from the moment that the City’s personnel are activated to respond until they return to the City and are relieved of responsibilities related to the non-local disaster. This report recommends adoption of an amended resolution (Attachment A) that will allow the City to expand reimbursement for all eligible expenses, including “portal to portal” compensation for all Fire Department staff. This change supports the Fire Department’s effort for “new ways of doing business” under the City’s Fiscal Health Response Plan by increasing reimbursement revenue to the General Fund. Background The San Luis Obispo Fire Department participates in the California Fire Assistance Agree ment (CFAA) (Attachment B) which is a collective agreement that sets reimbursement guidelines for mutual aid response to participating local, State and Federal government agency incidents. The CFAA is renewed every 5 years and the current agreement is set to expire on December 31, 2019. To receive reimbursement for expenses incurred as part of the Fire Department response to mutual aid incidents, each agency must abide by the requirements set forth in the CFAA. One of these requirements is to have a current Governing Body Resolution indicating which personnel are compensated “portal to portal” while on assignment. Currently, Resolution No. 10624 (Attachment C) only lists sworn personnel. The intent of this amendment is to increase mutual aid “portal to port al” compensation to all Fire Department personnel, thus allowing for increased reimbursement from the various agencies. Packet Pg. 123 Item 15 For every dollar that the department expends towards mutual aid response, the reimbursing agencies pay an additional administrative fee to help cover the hard costs associated with managing the reimbursements. These fees are updated annually by Fire Department staff and for 2017-18 the rate was set at 21.63% and the proposed rate for 2018-19 is 26.21%. As part of the Fiscal Health Respo nse plan, the Fire Department is planning on deploying additional personnel to assist in the operations and management of mutual aid incidents , which will help increase the total revenue that is generated by collecting the administrative fees. While the response of additional personal alone will help increase mutual aid revenue, increasing the total number of reimbursable hours will result in additional revenue. An example can be illustrated during the 2018 fire season, during which the Fire Department’s Fire Vehicle Mechanic responded to four mutual aid assignments. For each incident, the employee was compensated for a maximum of 16 hours each day. Were the employee compensated “portal to portal,” the City would have increased the net general fund revenue by nearly $5,600 per employee after all department expenses were covered. All additional changes recommended for Resolution No. 10624 are for the sake of clarity and removal of redundant language. CONCURRENCES The Human Resources Department concurs with the additional of all Fire Department personnel to the “portal to portal” mutual aid resolution. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constit ute a “Project” under CEQA Guidelines sec. 15278. FISCAL IMPACT If adopted, the attached amended resolution would result in additional “portal to portal” reimbursement and administrative fee revenue to the City for its role in processing non-local, reimbursement -eligible disaster responses. If the recommended resolution were in place for the 2017-18 fiscal year t he total mutual aid revenue would have increased by an estimated additional $5,600. This number is expected to increase as more staff members have become qualified to respond to such incidents. Staff will continue to monitor the reimbursement revenue and update the budget projections accordingly. Packet Pg. 124 Item 15 ALTERNATIVE The Council could cho ose to continue the practice of only compensating and seeking portal to portal reimbursement for sworn personnel. This is not recommended as the status quo would continue to leave eligible reimbursement on the table and would be counter to the Fire Department’s Fiscal Health Response Plan. Attachments: a - Resolution (Amended Resolution No. 10624 (2015 Series)) - Legislative Draft b - Current CFAA Agreement with Signatures c - Resolution 10624 - Mutual Aid Request for Assistance Packet Pg. 125 Item 15 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, IDENTIFYING THE TERMS AND CONDITIONS FOR FIRE DEPARTMENT RESPONSE AWAY FROM THEIR OFFICIAL DUTY STATION AND ASSIGNED TO AN EMERGENCY INCIDENT WHEREAS, the City of San Luis Obispo (“City”) is a public agency located in the County of San Luis Obispo, State of California, and WHEREAS, it is the City’s desire to provide fair and legal payment to all its employees for time worked; and WHEREAS, the City employs fire emergency response personnel including: Battalion Chiefs, Fire Captains, Engineers, Firefighters; and WHEREAS, the City and its Fire Department participates in mutual aid responses to emergencies outside the City and County; and WHEREAS, the City incurs staffing costs for Battalion Chiefs, Fire Captains, Engineers, Firefighters from portal to portal when these employees are responding to a mutual aid request for assistance; and WHEREAS, the City will compensate its employees portal to portal while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or pre-positioned for emergency response ; and WHEREAS, the City will compensate its employees overtime in accordance with personnel rules and regulations, their current Memorandum of Understating Agreement, and other applicable state and federal laws, while in the course of their employment and away from their official duty station or assignment and assigned to an emergency incident, in support of an emergency incident, or pre-positioned for emergency response; and WHEREAS, the City of San Luis Obispo will seek reimbursement for qualifying mutual aid responses such that all City costs, including but not limited to personnel, apparatus, equipment, and administrative costs, such that responses to reimbursement -qualifying mutual aid responses do not have a net negative impact on the City’s financial position. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Personnel shall be compensated according to Memorandum of Understanding (MOU), Personnel Rules and Regulations, and/or other directive tha t identifies personnel compensation in the workplace. Packet Pg. 126 Item 15 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 2. In the event a personnel classification does not have an assigned compensation rate, a "Base Rate" as set forth in an organizational policy, administrative directive or similar document will be used to compensate such personnel. SECTION 31. The San Luis Obispo Fire Department will maintain a current salary survey or acknowledgement of acceptance of the "Base Rate" on file with the California Governor's Office of Emergency Services, Fire Rescue Division. SECTION 42. City Fire Department response personnel will be compensated (portal to portal) beginning at the time of dispatch to the return to jurisdiction when equipment and personnel are in service and available for agency response. SECTION 53. Fire Department response personnel include: Fire Chief, Deputy Fire Chief, Battalion Chief, Fire Captain, Engineer, and Firefighter, Administrative Analyst, Administrative Assistant, Fire Marshall, Fire Inspector I, Fire Inspector II, Fire Inspector III, Hazardous Materials Coordinator, Fire Vehicle Mechanic and Mechanic Helper . SECTION 4. Resolution 10624 (Series 2015) is hereby 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: Packet Pg. 127 Item 15 Resolution No. _____ (2018 Series) Page 3 R ______ _____________________________________ 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 Packet Pg. 128 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 1 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 THIS AGREEMENT made and entered into on last date signed by and between the State of California, Governor’s Office of Emergency Services, hereinafter referred to as Cal OES; the State of California, Department of Forestry and Fire Protection, hereinafter referred to as CAL FIRE; the USDA Forest Service, Pacific Southwest Region; the USDI Bureau of Land Management (BLM), California State Office; the USDI National Park Service (NPS), Pacific West Region; USDI Fish and Wildlife Service (FWS), Pacific Southwest Region, and USDI Bureau of Indian Affairs (BIA), Pacific Region, hereinafter referred to as the Federal Fire Agencies; all parties hereinafter referred to as the Cal OES, CAL FIRE, and the Federal Fire Agencies, under the provisions of the Act of December 12, 1975, PL 94-148, the Act of April 24, 1950 (16 USC 572), the Reciprocal Fire Protection Act, 42 USC 1856a, the Disaster Relief Act of 1974, PL 93-288, and The Federal Land Policy and Management Act of 1996, (PL 94-579, Sec, 307(b)). NAME This Agreement shall be entitled “Agreement for Local Government Fire and Emergency Assistance to the State of California and Federal Fire Agencies”, hereinafter referred to as the “California Fire Assistance Agreement”, or CFAA. RECITALS 1. The Federal Fire Agencies are responsible for providing a level of wildland fire protection for federal lands, as designated by Congressional action and Federal policy; and 2. CAL FIRE is responsible for providing a level of wildland fire protection for State Responsibility Area lands, as designated by the State Board of Forestry and Fire Protection; and AGREEMENT FOR LOCAL GOVERNMENT FIRE AND EMERGENCY ASSISTANCE TO THE STATE OF CALIFORNIA AND FEDERAL FIRE AGENCIES Between STATE OF CALIFORNIA, GOVERNOR’S OFFICE OF EMERGENCY SERVICES; STATE OF CALIFORNIA, DEPARTMENT OF FORESTRY AND FIRE PROTECTION; USDA FOREST SERVICE, PACIFIC SOUTHWEST REGION; USDI BUREAU OF LAND MANAGEMENT, CALIFORNIA STATE OFFICE; USDI NATIONAL PARK SERVICE, PACIFIC WEST REGION; USDI FISH AND WILDLIFE SERVICE, PACIFIC SOUTHWEST REGION; and USDI BUREAU OF INDIAN AFFAIRS, PACIFIC REGION Packet Pg. 129 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 2 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 3. For efficiency and effectiveness, CAL FIRE and the Federal Fire Agencies may exchange protection area responsibilities with the understanding that Local Responsibility Area lands are not part of this Agreement or included in the exchange; and 4. Cal OES is responsible to provide for systematic mobilization, organization, and operation of necessary fire and rescue resources through the California Fire and Rescue Mutual Aid System in mitigating the effects of disasters and to ensure that the responding agencies understand the terms and conditions of the Agreement applicable to their response; and 5. Cal OES, CAL FIRE , the Federal Fire Agencies, and local agencies, at times of severe wildfire conditions and other emergencies, often have need of emergency apparatus and/or personnel to provide fire protection or perform other tasks during control actions; and 6. Cal OES, through the California Fire and Rescue Mutual Aid System, has such emergency apparatus and personnel, which may be available in the spirit of cooperation for dispatch and use; and 7. It is desirable that Cal OES, CAL FIRE, and the Federal Fire Agencies establish and enter into an Agreement for the prudent use of such emergency apparatus and personnel; and 8. Cal OES, CAL FIRE, and the Federal Fire Agencies will generally use this Agreement for engines, water tenders, and overhead to address incidents once local agreement resources are exhausted, or where a local agreement is not in place; and 9. This Agreement may be used to reimburse overhead for incident management teams where a local agreement is not in place; and 10. Cal OES, CAL FIRE and the Federal Fire Agencies shall use this Agreement as the fiscal authority for reimbursing local government agencies for the use of their resources. Annual operating plans may be utilized at the local level to facilitate administrative and operational issues; and 11. When this Agreement is exercised to obtain Cal OES resources and/or resources through the California Fire and Rescue Mutual Aid System, those resources will be reimbursed pursuant to this Agreement; and 12. When ordering any resource in Recital 5 of this Agreement from other agencies through the California Fire and Rescue Mutual Aid System, a local agency may utilize this Agreement as the fiscal authority for reimbursing other local agencies; and Packet Pg. 130 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 3 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 13. Responsibility for determining the basis for requesting assistance through this Agreement rests with the Incident Commander or through the Emergency Command Center. The Incident Commander is responsible for all assignments and tactical decisions for resources obtained through this Agreement; and 14. Except as otherwise provided in Recital 25 of this Agreement, all parties to this Agreement hereby waive claims between and/or against each other arising from the performance of this Agreement, for compensation for loss or damage to each other’s property, and personal injury including death, of employees, agents, and contractors, except that this waiver shall not apply to intentional torts; and 15. Agreement Committee 15.1 California Fire Assistance Agreement Committee. A California Fire Assistance Agreement Committee (the ‘Committee’) shall be formed by Cal OES for the purpose of negotiating the terms of the CFAA, and for maintenance of the Agreement. For the purposes of coordination, Cal OES Fire and Rescue Division Chief, or the Chief's designee, shall serve as the Chairperson. 15.2 Composition of the Committee. The Committee shall consist of Cal OES, CAL FIRE, the Federal Fire Agencies, and three advisory representatives from local government fire agencies in California: one from Northern California, one from Southern California, and one representing volunteer fire departments. The local government agency representatives shall be appointed by the Chairperson of the State of California Fire and Rescue Advisory Committee/FIRESCOPE, Board of Directors. 15.3 Meetings to establish reimbursement rates and new methods of reporting or invoicing. The Committee will meet in person annually to establish the Base Administrative Rate, Personnel Base Rates, and Equipment Rates to become effective upon publication of the rate letter each year. These rates will be published annually by Cal OES Fire and Rescue Division, in an “Agreement for Local Government Fire and Emergency Assistance to the State of California and Federal Fire Agencies Rate Letter”. The Committee will also review the Average Actual Rates, Actual Administrative Rates, Workers’ Compensation Rates, and the Unemployment Rates on file with Cal OES Fire and Rescue Division, as well as negotiate procedural changes. The Average Actual Rates, Actual Administrative Rates, Workers’ Compensation Rates, and Unemployment Rates are subject to change throughout the year due to labor negotiations, cost of living increases, and insurance rate recalculations, etc. 15.4 Change in rates after the publication of the Annual Rate Letter. Cal OES will monitor and track the Federal Emergency Management Agency (FEMA) Schedule of Equipment Rates and will notify the Committee of any rate changes. The Committee will, at a minimum, conduct a Packet Pg. 131 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 4 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 conference call to formally discuss the new rates and determine if they are valid for a revised rate letter publication. Cal OES will forward the revised rates to the CFAA signatories for a two week review. Once the review process is complete and approved, a revised rate letter will be established and released for publication to the California Fire and Rescue Mutual Aid System Agencies. 15.5 Meetings to re-negotiate the Agreement. The Committee shall schedule meetings to begin no later than 12 months before the expiration date of the CFAA for the purpose of re-negotiation. It is recommended that the Committee produce the final document for signatures no later than six months before the expiration date of the Agreement. The Committee will meet as necessary to make adjustments or changes to the Agreement. THEREFORE, it is agreed as follows: TERMS AND CONDITIONS Incorporation of Exhibits into Agreement 16. The following exhibits are incorporated into this Agreement: A. Reimbursement Policy and Procedures B. ICS Type 3, 4, 5, 6, & 7 Engine, Equipment, Personnel, & Training Standards for Fire and Emergency Assistance C. Reimbursement for Personnel Rotation D. Communications Capabilities E. ICS Tactical Water Tender, Equipment, Personnel, and Training Standards for Fire and Emergency Assistance F. FEMA Equipment Rate Formula G. Reimbursement Policy and Procedures for Outside the State of California Assignments H. In-State Travel and Incident Related Expenses I. Definitions Exhibits to the Agreement may be revised upon request of the signatory agencies. The latest revision of any exhibit will be automatically incorporated into this Agreement without requiring a formal modification as defined in Recital 34. Packet Pg. 132 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 5 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Requests for and Release of Emergency Apparatus and Personnel 17. Under this Agreement, Cal OES, CAL FIRE, the Federal Fire Agencies, and local agencies may request emergency apparatus and personnel from the California Fire and Rescue Mutual Aid System. Resources ordered pursuant to this Agreement will be processed through the California Fire and Rescue Mutual Aid System. Cal OES will fill these orders by following the procedures set forth in the California Fire Service and Rescue Emergency Mutual Aid Plan. 18. Cal OES, CAL FIRE and the Federal Fire Agencies will use the current Resource Order Form (automated Resources Ordering and Status System, or equivalent) for all requests. Cal OES, CAL FIRE, and the Federal Fire Agencies shall not be responsible for any emergency apparatus and personnel not confirmed by their respective order and request number(s). Cal OES, CAL FIRE, and the Federal Fire Agencies are responsible for documenting within the request that the resources are being ordered under this Agreement. 19. Cal OES, CAL FIRE, the Federal Fire Agencies, and local agencies release or reassignment of emergency apparatus used pursuant to this Agreement will be coordinated through the on-scene Cal OES Fire and Rescue Chief Officer, the local jurisdiction agency representative, or their authorized representative. The Cal OES Chief officer or representative will ensure the inspection and inventory of such emergency apparatus prior to release to its home base in accordance with incident-established inspection and demobilization procedures. Protective Clothing and Equipment 20. It shall be the responsibility of the jurisdiction sending emergency personnel to ensure that such personnel are provided protective clothing and equipment as required by the most current version of the rules found at California Code of Regulations, Title 8, Section 3410, Article 10.1, Section 3401, et seq. Emergency Apparatus 21. Emergency apparatus shall meet minimum ICS type standards. Communications Capabilities 22. Strike Team/Task Force Leaders. It shall be the responsibility of the jurisdiction sending a Strike Team/Task Force Leader to ensure that the leader has adequate communications capability. Adequate communications capability is identified and defined in the Statewide FIRESCOPE Frequency Plan. Packet Pg. 133 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 6 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Emergency Apparatus. It shall be the responsibility of the jurisdiction sending emergency apparatus to ensure that the emergency apparatus has common communications capability with the Strike Team/Task Force Leader. It is desirable that emergency apparatus have adequate communications capability as defined above. Reimbursement Procedures 23. Provisions and procedures for reimbursement by Cal OES, CAL FIRE, and the Federal Fire Agencies for fire and emergency assistance are defined in Exhibit “A”, Reimbursement Policy and Procedures. CAL FIRE and the Federal Fire Agencies will provide Cal OES Fire and Rescue Division with current billing addresses. Reimbursement for personnel on Cal OES- owned emergency apparatus shall be to local jurisdictions that provide such personnel by apparatus assignee Agreement with Cal OES. 24. It is desirable that Cal OES, CAL FIRE, and the Federal Fire Agencies establish a system that supports the electronic processing of salary surveys, invoices, and other pertinent documents. Reimbursement for Emergency Apparatus Loss or Damage 25. Cal OES, CAL FIRE, and the Federal Fire Agencies may reimburse California Fire and Rescue Mutual Aid System Agencies providing resources through the California Fire and Rescue Mutual Aid System for the cost of emergency apparatus or equipment loss or damage where the loss or damage is directly attributable to the incident, and where the local agency, its employees, and/or operational failures in the emergency apparatus or support equipment are not a contributing factor to such damage or loss. Loss or damage to local agency emergency apparatus or support equipment while travelling to or from an incident, and repairs due to normal wear and tear or due to negligent or unlawful operation by the operator, shall be the responsibility of the local agency providing the emergency apparatus or support equipment. 26. Loss or damage to local agency emergency apparatus or support equipment occurring on an incident is to be reported to the incident finance section to ensure proper documentation and investigation. 27. Except as otherwise provided in Recital 25 of this Agreement, all parties to this Agreement hereby waive claims between and/or against each other arising from the performance of this Agreement for compensation for loss or damage to each other’s property, and personal injury including death of employees, agents, and contractors. This waiver shall not apply to intentional torts. Packet Pg. 134 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 7 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Claims Dispute Resolution 28. Should a California Fire and Rescue Mutual Aid System Agency not be able to resolve a claim regarding compensation, reimbursement, damage or equipment repair through negotiation with a forest agency, it should contact the appropriate agency’s claims division, listed below: 28.1 California Department of Forestry and Fire Protection Incidents: Victim Compensation and Government Claims Board 630 "K" Street Sacramento, CA 95814 28.2 U. S. Forest Service Incidents: Albuquerque Service Center Claims Management 101B Sun Ave. NE Albuquerque, NM 87109 28.3 National Park Service Incidents: Fire Management Office National Park Service 333 Bush St., Suite 500 San Francisco, CA 94104 28.4 Bureau of Land Management Incidents: Bureau of Land Management Branch of Fire and Aviation Management 2800 Cottage Way Sacramento, CA 95825 28.5 Fish and Wildlife Service Incidents: Fish and Wildlife Service Pacific Southwest Region 2800 Cottage Way, W1834 Sacramento, CA 95825 28.6 Bureau of Indian Affairs Incidents: Bureau of Indian Affairs Branch of Fire and Aviation Management 2800 Cottage Way, Room W-2820 Sacramento, CA 95825 Packet Pg. 135 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 8 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Examination and Audit 29. California Fire and Rescue Mutual Aid System Agencies and Cal OES shall be subject to examination and audit for five years after the final payment under the terms of this Agreement. Examination and audit shall be confined to those matters connected with the performance of this Agreement including, but not limited, to the cost of administration. Appropriated Fund Limitation 30. Nothing herein shall be interpreted as obligating any parties herein to expend funds, or as involving the United States or the State of California in any contract or other obligation for the future payment of money in excess of appropriations authorized by law and administratively allocated for the work contemplated in this Agreement. Officials Not To Benefit 31. No member of, or Delegate to, Congress or Resident Commission shall be admitted to any share or part of this Agreement or to any benefit to arise therefore, unless it is made with a corporation for its general benefit. Civil Rights and Nondiscrimination 32. The cooperators shall comply with all federal statutes relating to nondiscrimination and all applicable requirements of all other federal laws, executive orders, regulations, and policies. These include, but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d through 2000d-16), which prohibits discrimination on the basis of race, color, disability, or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973 as amended (29 U.S.C. 794) which prohibits discrimination on the basis of disabilities and provides for "reasonable accommodation" in hiring of persons with disabilities; and (d) the Older American Act of 1965 as amended (42 U.S.C. 3056 and 6101 et. seq.). Packet Pg. 136 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 9 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Previous Agreements Cancelled 33. This Agreement supersedes the Agreement entered into on October 20, 2009, and as extended January 1, 2014, June 30, 2014, and September 1, 2014 (Cal EMA# 6022-9, CAL FIRE# 7CA00236, USFS# 09-FI-11052012-150, NPS# H807507003, BLM# BAA081002, F&WS# 802233-9-J001, BIA# AGP000768), between the State of California, Emergency Management Agency; State of California, Department of Forestry and Fire Protection; USDA Forest Service, Pacific Southwest Region; USDI Bureau of Land Management, California State Office; USDI National Park Service, Pacific West Region; USDI Fish and Wildlife Service, Pacific Southwest Region; and USDI Bureau of Indian Affairs, Pacific Region. Amendments 34. Except as otherwise provided in Recitals 15 and 16, this Agreement may only be amended by written mutual consent of the parties hereto. Effective Date and Termination 35. The parties herein agree to honor the terms and conditions commencing on January 1, 2015. This Agreement shall remain in effect until December 31, 2019. The Agreement may be terminated by any one of the parties upon 30 days’ written notice to all the other parties. Multiple Signature Pages 36. The parties agree to accept multiple signature pages. Packet Pg. 137 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page 10 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 REGIONAL DIRECTOR USDI BUREAU OF INDIAN AFFAIRS PACIFIC REGIONAL OFFICE By: Insert Name Regional Director Date: REGIONAL DIRECTOR USDI FISH AND WILDLIFE SERVICE PACIFIC SOUTHWEST REGION By: Insert Name Regional Director Date: REGIONAL DIRECTOR USDI NATIONAL PARK SERVICE PACIFIC WEST REGION By: Insert Name Regional Director Date: CALIFORNIA STATE DIRECTOR USDI BUREAU OF LAND MANAGEMENT CALIFORNIA STATE OFFICE By: Insert Name California State Director Date: IN WITNESS WHEREOF, the parties hereto have executed this Agreement: DIRECTOR STATE OF CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICES By: Mark S. Ghilarducci Director Date: Packet Pg. 138 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 CONTRACTING OFFICER USDI BUREAU OF INDIAN AFFAIRS PACIFIC REGIONAL OFFICE By: Kathleen (Gail) Schultz Contracting Officer Date: CONTRACTING OFFICER USDI FISH AND WILDLIFE SERVICE REGION 1 / REGION 8 By: Insert Name Contracting Officer Date: REVIEW: The authority and format of this instrument has been reviewed and approved for signature by the following individuals: CONTRACTING OFFICER USDI BUREAU OF LAND MANAGEMENT CALIFORNIA STATE OFFICE By: Traci D. Thaler Contracting Officer Date: (date signed above) Page 11 Packet Pg. 139 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-1 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 GENERAL A-1 It is the intent of the signatories to the CFAA to reimburse California Fire and Rescue Mutual Aid System Agencies, including accrued financial liability for the cost of assisting the State of California and the Federal Fire Agencies. The rates, methodologies, and formulas in the Agreement are intended to provide for such costs. The reimbursement shall be consistent with the California Fire and Rescue Mutual Aid System Agency’s normal internal business practices and any existing Memorandum of Understanding (MOU)/Memorandum of Agreement (MOA), Governing Body Resolution (GBR), or equivalent, which supports those business practices. A-2 The California Fire and Rescue Mutual Aid System Agencies shall use the following procedures to secure reimbursement for the provision of personnel and local government-owned emergency apparatus. Terms established in this section shall be made binding upon California Fire and Rescue Mutual Aid System Agencies by Cal OES and shall not be subject to interpretation or rejection by the jurisdiction providing assistance. See Clause A-36 for procedures that do not apply or are applicable to State Agency Fire Departments, Department of Defense Fire Departments, or Tribal Fire Departments. A-3 California Fire and Rescue Mutual Aid System Agencies that provide their personnel and equipment to the State of California or the Federal Fire Agencies through the California Fire and Rescue Mutual Aid System and this Agreement, do so on a voluntary basis, and accept the following provisions for reimbursement. A-4 It is understood and agreed that a California Fire and Rescue Mutual Aid System Agency providing personnel or California Fire and Rescue Mutual Aid System Agency-owned emergency apparatus shall obtain reimbursement for such response by billing the ordering entity (either the State of California or Federal Fire Agency) through the Cal OES invoicing process in accordance with this Exhibit. A-5 Reimbursement for personnel and emergency apparatus will begin after the 12th hour. There shall be no reimbursement for responses of 12 hours duration or less with the exception of the Department of Interior (DOI) fire agencies (BLM, NPS, FWS, and BIA). DOI reimbursement for personnel and emergency apparatus will begin after the 4th hour. If the duration of the response exceeds 12 hours (4 hours for DOI) and local agencies have an existing MOU/MOA, GBR, or equivalent that indicates compensation for all hours worked, reimbursement for personnel and EXHIBIT “A” REIMBURSEMENT POLICY AND PROCEDURES Packet Pg. 140 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-2 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 emergency apparatus shall cover the entire time of commitment, beginning at the time of initial dispatch from home base, to the time of return to home base. If local agencies do not have an existing MOU/MOA, GBR, or equivalent that indicates compensation for all hours worked, local agencies will be reimbursed for actual hours worked. Should personnel or emergency apparatus be requested for assignment to a Mobilization Center for standby duty, the reimbursement period shall begin with the time of initial dispatch of said personnel or emergency apparatus from its home base. Additionally, as the 12 hour period (4 hours for DOI) stated above is cumulative, responding personnel and/or emergency apparatus shall only be subject to one 12 hour period (4 hours for DOI) from the original time of dispatch, regardless of the number of re- assignments that may occur prior to returning to their home base. A-6 In some cases on a single incident, the State of California and the Federal Fire Agencies may need to convert resources that were ordered under Statewide Master Mutual Aid (MMA) to reimburse resources under the California Fire Assistance Agreement. In these cases, MMA resources will be released by the responsible agency and reordered by the State of California and/or the Federal Fire Agencies through the CFAA. For resources that have been on the same incident for more than 12 hours (4 hours for DOI), reimbursement will begin at the time the order under the California Fire Assistance Agreement was initiated. Resources that have been on the same incident under MMA for 12 hours (4 hours for DOI) or less will have their time applied to the California Fire Assistance Agreement 12-hour (4 hours for DOI) minimum. After the 12 hours (4 hours for DOI) are completed, reimbursement will begin at the time the order under the California Fire Assistance Agreement was initiated. The 12 hour (4 hours for DOI) period shall be subject to annual review and monitoring by the California Fire Assistance Agreement Committee. A-7 Invoices will include an administrative rate as determined by the Committee using principals and standards outlined in the Office of Management and Budget (OMB) Super Circular, Title 2 in the Code of Federal Regulations (2 CFR), Subtitle A, Chapter II, part 225 (A-87). The Administrative Rate will be added to the total of the personnel, fire engine, support equipment, and other approved reimbursements for local government. The Base Administrative Rate is set annually by the Committee per the rate letter published at the time of dispatch, unless the California Fire and Rescue Mutual Aid System Agency submits an agency-specific administrative rate in accordance with the Instructions for Completing Actual Administrative Rate Calculations. Cal OES will issue these instructions annually along with the salary survey instructions. California Fire and Rescue Mutual Aid System Agencies that develop an Actual Administrative Rate must review and update their rate by July 1 of each year. Packet Pg. 141 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-3 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 REIMBURSEMENT – PERSONNEL A-8 A committee will establish a standard reimbursement formula for local agency personnel with Base Rates applicable to all jurisdictions. The default reimbursement will be at the Base Rate for actual hours worked on the incident. Agencies can be reimbursed at a rate that is higher than the Base Rate, and/or for more than actual hours worked (up to 24 hours per day), as follows: A-8.1 All agencies seeking reimbursement for its personnel must complete and sign the annual salary survey and file it with the Cal OES Fire and Rescue Division. The Authorized Representative will provide verification that the personnel wages are accurate for each requested position. A-8.2 Any agency seeking reimbursement for its personnel for more than actual hours worked on the incident (portal-to-portal) must file an MOU/MOA, GBR, or equivalent with Cal OES Fire and Rescue Division. The MOU/MOA, GBR, or equivalent shall indicate how personnel will be compensated. A-8.3 Any agency seeking reimbursement for its supplemental personnel will accept rates as outlined in NWCG#004-2009, Attachment D, https://www.nwcg.gov/sites/default/files/memos/eb-m-09- 004d_0.pdf, which states that supplemental personnel will be reimbursed using General Schedule tables with locality pay applied for actual hours worked. Reimbursement shall be in accordance with Clause A-16. A-9 The above required documentation for rates and hours shall be based on actual costs to the responding agency, and not contingent upon reimbursement from the State of California or Federal Fire Agencies at a rate that exceeds what the agency will pay its personnel. Reimbursements will be based on the salary survey and any applicable MOU/MOA, GBR, or equivalent that is on file at the time of the initial dispatch. Any MOU/MOA, GBR, or equivalent is subject to review by the Committee. Local government will be formally notified of the determination. A-10 These formulas and rates of payment shall constitute full reimbursement for direct costs, including back fill to local jurisdictions relative to personnel provided. Liability for workers compensation claims and/or payment of unemployment benefits shall remain the responsibility of the responding local, state, federal, and tribal agencies that directly employ the personnel. All calculations shall be subject to audit by the State of California or the Federal Fire Agencies in accordance with Recital 29, Examination and Audit. Packet Pg. 142 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-4 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 A-11 Reimbursement for fractional hours shall be taken to the next quarter hour. A-12 Reimbursement shall be made only for such personnel that have been specifically requested or approved by the State of California or the Federal Fire Agencies. Any personnel not given an Order/Request number shall be considered a voluntary contribution from the responding agency and not subject to reimbursement. Formula for Personnel Reimbursement Using Base Rates A-13 California Fire and Rescue Mutual Aid System Agencies will submit a salary survey to be reimbursed at the established Engine Company Base Rate for personnel responding on emergency apparatus or as overhead personnel at or below the Strike Team/Task Force Leader Trainee level. Strike Team/Task Force/Unit Leader level or above personnel will be reimbursed at the established Overhead Base Rate. A-14 California Fire and Rescue Mutual Aid System Agencies that have not submitted a Salary Survey for rates above the established Base Rates will submit a salary survey to be reimbursed using one of the following formulas: The formula for the total invoice claim with an MOU/MOA, GBR, or equivalent for all hours (portal to portal) is: [(B x H1) + (B x H1 x W) + (B x H1 x U)] = Total Personnel Reimbursement The formula for the total invoice claim without an MOU/MOA, GBR, or equivalent for all hours (actual hours) is: [(B x H2) + (B x H2 x W) + (B x H2 x U)] = Total Reimbursement B= Base Rate H1 = All Hours (portal to portal) H2= Actual Hours Worked W= Workers’ Compensation Percentage Rate U= Unemployment Percentage Rate The Established Base Rate (B) is based on the average of the CAL FIRE Fire Captain or Fire Apparatus Engineer base rates and the USDA Forest Service emergency hire rates for these positions applied to a 168 hour week, with 40 hours at straight-time and 128 hours at overtime. The total amount is then divided by 168 hours resulting in a blended rate. Packet Pg. 143 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-5 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Formula for Establishing the Base Rates The following base rate formulas include an overtime component. Base Rate formula for Engine Company personnel and Overhead at or below Strike Team/Task Force Leader Trainee (AD-F + CAL FIRE Fire Apparatus Engineer base rate) / 2 = Combined Rate, ((Combined Rate x 40 Hours Straight Time) + (Combined Rate x 128 Hours Overtime)) / 168 = Overtime Base Rate x .6667 = Straight Time Base Rate Numerical Calculation: 24.16 + 20.79 = 44.95 / 2 = 22.48, ((22.48 x 40) + (22.48 x 1.5 x 128)) = 5215.36 / 168 = $31.04 x .6667 = $20.69 Base Rate formula for Overhead at or above Strike Team Leader/Task Force Leader (AD-H + CAL FIRE Fire Captain base rate) / 2 = Combined Rate, ((Combined Rate x 40 Hours Straight Time) + (Combined Rate x 128 Hours Overtime)) / 168 = Overtime Base Rate x .6667 = Straight Time Base Rate Numerical Calculation: 29.52 + 24.65 = 54.17/ 2 = 27.09, ((27.09 x 40) + (27.09 x 1.5 x 128)) = 6284.88 / 168 = $37.41 x .6667 = $24.94 Definitions for abbreviations used in Base Rate Formula AD - Administratively Determined Pay Plan for Emergency Workers. Pay rates for emergency (casual) employees of the Federal Fire Agencies. AD F - The classification is Engine Boss. AD H - The classification is Strike Team Leader. CAL FIRE base Fire Captain and Fire Apparatus Engineer salary rates are converted to hourly rates. Formula for Suppression Personnel Reimbursement Using Average Actual Rates A-15 The California Fire and Rescue Mutual Aid System Agencies may submit a salary survey with the agency’s established average actual rates to Cal OES Fire and Rescue Division for any personnel dispatched to an incident. The personnel who are dispatched to an incident will first be classified and reimbursed as described in Clauses A-15.1 through A-15.3. The submission of average actual rates shall be on file with Cal OES Fire and Rescue Division prior to the time of personnel dispatch. Packet Pg. 144 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-6 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 A-15.1 California Fire and Rescue Mutual Aid System Agencies that have submitted average actual rates to Cal OES Fire and Rescue Division at or below the Battalion Chief level shall be reimbursed using one of the following formulas: The formula for the total invoice claim with an MOU/MOA, GBR, or equivalent for all hours (portal to portal) is: [(A x H1 x 1.5) + (A x H1 x 1.5 x W) + (A x H1 x 1.5 x U)] = Total Reimbursement The formula for the total invoice claim without an MOU/MOA, GBR, or equivalent for all hours (actual hours) is: [(A x H2 x 1.5) + (A x H2 x 1.5 x W) + (A x H2 x 1.5 x U)] = Total Reimbursement A= Average Actual Rate H1 = All Hours (portal to portal) H2 = Actual Hours Worked W = Workers’ Compensation Percentage Rate U = Unemployment Percentage Rate The Average Actual Hourly Rate (A) is the average hourly rate of all personnel in the specific rank (e.g., Captain, Engineer, Firefighter) within each individual jurisdiction. A-15.2 California Fire and Rescue Mutual Aid System Agencies that have submitted Average Actual Rates to Cal OES Fire and Rescue Division above the Battalion Chief level shall be reimbursed using the following formulas: The formula for the total invoice claim with an MOU/MOA, GBR, or equivalent for all hours (portal to portal) is: [(A x H1) + (A x H1 x W) + (A x H1 x U)] = Total Reimbursement The formula for the total invoice claim without an MOU/MOA, GBR, or equivalent for all hours (actual hours) is: [(A x H2) + (A x H2 x W) + (A x H2 x U)] = Total Reimbursement A = Average Actual Rate H1 = All Hours (portal to portal) H2 = Actual Hours Worked W = Workers’ Compensation Percentage Rate U = Unemployment Percentage Rate A-15.3 If personnel above the Battalion Chief level have an MOU/MOA, GBR, or equivalent that indicates they are to be paid above straight time, the reimbursement will be calculated using one of the following formulas. The MOU/MOA, GBR, or equivalent is subject to the provisions in Packet Pg. 145 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-7 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Clause A-9, and must not be contingent on this Agreement or executed on the sole basis that there is reimbursement from Cal OES, CAL FIRE, or the Federal Fire Agencies. The formula for the total invoice claim with an MOU/MOA, GBR, or equivalent for all hours (portal to portal) and MOU/MOA, GBR, or equivalent for above straight-time is: [(A x H1 x 1.5) + (A x H1 x 1.5 x W) + (A x H1 x 1.5 x U)] = Total Reimbursement The formula for the total invoice claim without an MOU/MOA, GBR, or equivalent for all hours (actual hours) and with an MOU/MOA, GBR, or equivalent for above straight-time is: [(A x H2 x 1.5) + (A x H2 x 1.5 x W) + (A x H2 x 1.5 x U)] = Total Reimbursement A = Average Actual Rate H1 = All Hours (portal to portal) H2 = Actual Hours Worked W = Workers’ Compensation Percentage Rate U = Unemployment Percentage Rate Formula for Non-Suppression Personnel Reimbursement Using Average Actual Rates A-15.4 California Fire and Rescue Mutual Aid System Agencies that have submitted Average Actual Rates to Cal OES Fire and Rescue Division for Non-Suppression Personnel shall be reimbursed for actual hours worked using the following formula: The formula for the total invoice claim without an MOU/MOA, GBR, or equivalent for all hours (actual hours) is: [(A x 1.5 x H2) + (A x 1.5 x H2 x W) + (A x 1.5 x H2 x U)] = Total Reimbursement A = Average Actual Rate H2 = Actual Hours Worked W = Workers’ Compensation Percentage Rate U = Unemployment Percentage Rate The Average Actual Rate (A) is the average hourly rate of all personnel in the specific rank (e.g., Dispatcher, Heavy Equipment Mechanic, and Inspector) within each individual fire agency. Non-Suppression Personnel, who have an MOU/MOA, GBR, or equivalent that indicates they are to be paid portal to portal according to Clause A-8.2, will be reimbursed in accordance with the following Formula for Personnel Using Average Actual Rates: Packet Pg. 146 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-8 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 The formula for the total invoice claim with an MOU/MOA, GBR, or equivalent for all hours (portal to portal) is: [(A x H1 x 1.5) + (A x H1 x 1.5 x W) + (A x H1 x 1.5 x U)] = Total Reimbursement A= Average Actual Rate H1 = All Hours (portal to portal) W= Workers’ Compensation Percentage Rate U= Unemployment Percentage Rate The Average Actual Hourly Rate (A) is the average hourly rate of all personnel in the specific rank (e.g., Dispatcher, Mechanic, and Inspector) within each individual jurisdiction. The 1.5 multiplier in the formula represents an hourly rate, which includes benefits for straight time, and an overtime rate for overtime hours. Supplemental Fire Department Resource Reimbursement Using NWCG#004-2009 A-16 California Fire and Rescue Mutual Aid System Agencies seeking reimbursement for Supplemental Fire Department Resources will accept rates as outlined in NWCG#004-2009, Attachment D, https://www.nwcg.gov/sites/default/files/memos/eb-m-09-004d_0.pdf, which states that Supplemental Fire Department Resources will be reimbursed using General Schedule tables with locality pay applied for actual hours worked. California Fire and Rescue Mutual Aid System Agencies that roster or sponsor Supplemental Fire Department Resources shall be reimbursed at the rate of the position being filled on the incident. California Fire and Rescue Mutual Aid System Agencies shall identify their Supplemental Fire Department Resources separately on the Supplemental Fire Department Resource section of the Cal OES Salary Survey and not include them under the Suppression responder categories. They are not a permanent part of the local fire organization. They are mobilized primarily for response to incidents/wildland fires outside of the fire agency’s jurisdiction. Supplemental Fire Department Resources shall be paid a regular compensation rate for all hours worked plus an overtime compensation rate for actual overtime hours worked, including travel. Base hourly rate shall be no more than step 5 of the appropriate GS wage adjusted for locality pay at the location of the fire department’s jurisdiction. Rates can be found on the Office of Personnel Management website, https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2017/general- schedule/. Reimbursement costs shall not include portal to portal pay or the employee portion of benefits. Backfill is not reimbursable for personnel hired as Supplemental Fire Department Resource. Approved travel costs will be in accordance with Clause A-33. Packet Pg. 147 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-9 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Engine Company and Tactical Water Tender Staffing A-17 Engine company staffing shall not be less than three (3) or a reimbursable maximum of four (4). The State of California or the Federal Fire Agencies will reimburse based on the actual classifications responding, not to exceed one Company Officer, one Apparatus Operator, and one or two Firefighters. Tactical water tender staffing shall be reimbursed based upon the actual classifications responding, not to exceed two Apparatus Operators or one Company Officer and one Firefighter. Personnel filling Engine Company or tactical water tender positions shall be certified at the appropriate level per Wildland Fire Qualification NWCG 310-1 Sub System Guide, or the California Incident Command Certification System (CICCS). Strike Team/Task Force Leader Trainee A-18 The State of California or the Federal Fire Agencies shall provide reimbursement for personnel requested by the State of California or the Federal Fire Agencies to coordinate (Strike Team/Task Force Leaders) or otherwise support the California Fire and Rescue Mutual Aid System resources, or Cal OES-owned emergency apparatus used on incidents. A strike team/task force may, at the discretion of the local jurisdiction, include a Strike Team/Task Force Leader Trainee as a reimbursable member of the unit. The Trainee will be covered under a strike team/task force order-request number and will be identified on a separate Cal OES Emergency Activity Record (F-42), unless the Trainee is from the same California Fire and Rescue Mutual Aid System Agency as the Strike Team Leader. The Strike Team/Task Force Leader Trainee shall travel with the strike team/task force in a vehicle from the existing strike team/task force and will not be reimbursed for the use of a second vehicle. The Trainee may provide the vehicle for the assignment, but no more than one vehicle will be reimbursed. Personnel filling Strike Team/Task Force Leader Trainee positions shall be certified at the Strike Team/Task Force Leader Trainee level per Wildland Fire Qualification NWCG 310-1 Sub System Guide, or CICCS. A-19 All Trainees will follow the qualification process in place at the incident. Overhead Personnel A-20 Personnel responding to a State of California or Federal Fire Agency’s request for overhead positions shall meet the training and experience requirements established for the ICS position to be filled (Reference: NWCG 310-1 Sub System Guide or CICCS). A-21 Requesting State of California or Federal Fire Agencies shall specify the mode of transportation for overhead personnel at the time of request. Reimbursement for travel shall be from local home unit or residence, whichever is less, using the most economical mode of transportation. Packet Pg. 148 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-10 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Once the mode of transportation is specified and approved by the requesting State of California or Federal Fire Agency, your agency may arrange transportation and shall be reimbursed in accordance with the approved methods as outlined in Exhibit “H”. Transfer/Reassignment to Other Operational Areas/Incidents A-22 California Fire and Rescue Mutual Aid System emergency apparatus and personnel requested through this Agreement may not be reassigned to a different incident in another Cal OES Operational Area, or to another incident through a different Agreement without the responding agency’s approval. The host State of California or Federal Fire Agency shall secure approval for such reassignment through the California Fire and Rescue Mutual Aid System. Cal OES Support A-23 Cal OES Fire Agency Representatives assigned to major incidents may need to have a Cal OES Support/Communications Unit to facilitate coordinating the mutual aid resources assigned to the incident. Staffing level for this resource shall be limited to a maximum of two (2) persons. Staff reimbursement will be based on the appropriate rate. REIMBURSEMENT – EMERGENCY APPARATUS A-24 The formulas and rates of payment for emergency apparatus shall be considered as covering all reimbursement related to the use of such vehicles except as provided in the Reimbursement of Emergency Apparatus Loss or Damage section in the Recitals of this Agreement, Recitals 25 through 27. A-25 Reimbursement for emergency apparatus refurbishment and rehab may be approved by the Incident Command, up to a maximum of 2 hours, as appropriate. California Fire and Rescue Mutual Aid System Agency Emergency Apparatus A-26 Engines and Tactical Water Tenders shall be reimbursed in accordance with the current FEMA Schedule of Equipment Rates established in the Annual Rate Letter. Engines and Tactical Water Tenders rates are based on a 16-hour maximum allowable charge, per 24-hour period. Reimbursement of other emergency response equipment shall be in accordance with 44 CFR 206.228 allowable costs. A-27. California Fire and Rescue Mutual Aid System Agencies shall assume operational costs, including necessary motor fuels and lubricants used in its emergency apparatus while responding to and returning from the State of California or Federal Fire Agency incidents. It shall be the Packet Pg. 149 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-11 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 responsibility of the responding jurisdiction to provide the necessary means of payment for such costs. A-28 Once at the incident and until released, the State of California or the Federal Fire Agencies will provide for motor fuel and lubricants, normal servicing costs, and minor repairs incidental to operation of emergency apparatus including California Fire and Rescue Mutual Aid System Agency support equipment. Minor Repair is defined as any repair necessary to keep the equipment in operation on the fire, which requires not more than two hours (labor time only) for one mechanic for any one job, exclusive of obtaining parts. Support Equipment, Privately-Owned Vehicles, and Rental Vehicles A-29 The State of California or the Federal Fire Agencies shall reimburse California Fire and Rescue Mutual Aid System Agencies for use of agency support equipment and private vehicles provided in conjunction with requested personnel. Reimbursement shall be calculated on a daily basis for local jurisdiction support equipment at the rate established by the Committee for the type or category of vehicle used. Privately-owned vehicle rates will be reimbursed on a per mile basis according to the current Internal Revenue Service (IRS) standard rate for business miles. A-30 In no case will a second support vehicle, privately-owned vehicle, or rental vehicle assigned to an individual, strike team, or task force be reimbursed. A-31 The use and reimbursement of rental vehicles requires authorization either at the time of the initial request in ROSS, or documented by written approval at the incident. Rental vehicles from an airport are discouraged, and the use of economy cars are encouraged. Rental vehicles and the fuel expense while responding to, during, or returning from a State of California or Federal Fire Agency incident will be reimbursed for the actual costs incurred by the California Fire and Rescue Mutual Aid System Agencies. The process to obtain reimbursement for rental vehicle expenses is outlined in Exhibit “H”. Other Equipment Rates (Excluding Aviation) A-32 All other equipment not identified specifically in this exhibit will be reimbursed using the FEMA Schedule of Equipment rates. If a FEMA equipment rate is not identified for the type of equipment being used, a rate may be developed using the FEMA equipment rate formula in Exhibit “F”. REIMBURSEMENT – TRAVEL EXPENSES A-33 At no time will the California Fire and Rescue Mutual Aid System Agencies seek reimbursement for travel expenses such as fuel, food, and lodging responding to, during, or returning from a Packet Pg. 150 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-12 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 State of California or Federal Fire Agency incident unless formally documented and approved in writing at the incident. The reimbursement of meals to and from the incident will be subject to the California state standard per diem and lodging rates specified in Exhibit “H”. Travel arrangements and reimbursement, including travel for relieving personnel and backfill, will only be made from the Fire Department/Agency location or residence whichever is closest to the incident or reporting location (such as staging). If formally documented and approved in writing at the incident, the process to obtain reimbursement for in state travel and incident-related expenses is outlined in Exhibit “H”. REIMBURSEMENT – PERSONNEL ROTATION A-34 When California Fire and Rescue Mutual Aid System Agency personnel are committed to extended assignments under this Agreement, there may be a need to rotate and replace personnel. Personnel under this Agreement are expected to be available a minimum of seven days (elapsed time) excluding travel, before needing replacement, regardless of the number of assignments from original dispatch. Expenses that are reimbursable are limited to personnel costs and transportation costs. Reimbursement for personnel will be in accordance with general personnel reimbursement provisions of this Agreement. Please reference Exhibit “C” for specific personnel rotation procedures. INCIDENT OFF-SHIFT REST AND SLEEPING ACCOMODATIONS A-35 The responsible State of California or Federal Fire Agency will provide, when practical, shaded and/or climatically maintained accommodations for off shift sleeping, rest, and recuperation for local jurisdiction resources confined to the incident base. If the incident command finds it operationally feasible (e.g., strike team remains available) to place local jurisdiction resources in a commercial sleeping accommodation, it may be provided by the Federal Fire Agencies and CAL FIRE. REIMBURSEMENT- STATE OF CALIFORNIA, FEDERAL, DOD, AND TRIBAL FIRE DEPARTMENTS A-36 State Agency Fire Departments, Federal Fire Departments, DOD Fire Departments, and Tribal Fire Departments may respond through the California Fire and Rescue Mutual Aid System. Tribal Fire Department’s that have a compacted or contracted wildland fire program from BIA will respond through the Federal Dispatching System and not through the California Fire and Rescue Mutual Aid System. Packet Pg. 151 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-13 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 State Agency Fire Department personnel will be reimbursed in accordance with reimbursement provisions for local jurisdictions except that the base rate provisions will not apply to inmate firefighters. Inmate firefighters will be reimbursed at their actual straight time rate in accordance with California Department of Corrections payment practices. Reimbursement of Federal, DOD, and Tribal Fire Departments that respond to CAL FIRE fires will be in accordance with the reimbursement provisions for local jurisdictions. Reimbursement of Federal, DOD, and Tribal Fire Departments that respond to Federal Fire Agency fires are governed by other federal agreements. In these cases Cal OES will not produce or process reimbursement invoices for DOD and Tribal Fire Departments. DOD Fire Departments responding under this Agreement will invoice the supported Federal Fire Agency directly in accordance with existing federal and local agreements. Tribal Fire Departments responding under this Agreement will invoice the BIA directly in accordance with existing federal or local Agreements. REQUESTING REIMBURSEMENT A-37 California Fire and Rescue Mutual Aid System Agencies will prepare a Cal OES Form F-42, and supporting documentation at the incident, which is the basis for reimbursement due and invoice preparation. These forms are provided by Cal OES Fire and Rescue Division. The Form F-42 must be signed by a responsible officer of the jurisdiction seeking reimbursement and by the State of California or Federal Fire Agency Incident Command to verify that the resources requested on the F-42 were authorized by the ordering agency and is the initial step for invoice processing. The completed F-42 is forwarded to Cal OES Fire and Rescue Division Headquarters for processing. FORMS F-42 should be submitted to the Cal OES Fire Agency Representative at the incident. In the absence of a Cal OES Fire Agency Representative, FORMS F-42 should be SUBMITTED TO Cal OES FIRE AND RESCUE DIVISION BY THE CALIFORNIA FIRE AND RESCUE MUTUAL AID SYSTEM AGENCY WITHIN 30 CALENDAR DAYS OF RELEASE FROM THE INCIDENT OR PAYMENT WILL BE DELAYED. A-38 Within 60 calendar days of receipt of the F-42, Cal OES Fire and Rescue Division will process the F-42 data into invoices (F-142) and return to the California Fire and Rescue Mutual Aid System Agency for verification of billing amounts and signature. THERE WILL BE A DELAY IN PAYMENT FOR INVOICES (F-142) NOT RETURNED TO Cal OES FIRE AND RESCUE DIVISION WITHIN 30 CALENDAR DAYS OF RECEIPT FOR VERIFICATION OF BILLING AMOUNTS AND SIGNATURE. Packet Pg. 152 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-14 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 A-39 Upon return receipt and verification of the invoice (F-142) by the California Fire and Rescue Mutual Aid System Agency, Cal OES Fire and Rescue Division will forward the invoice (F-142) to the appropriate State of California or Federal Fire Agency within 30 calendar days along with a copy of the F-42 as the source document. Inquiries from the State of California and Federal Fire Agencies regarding amounts billed will first be addressed to Cal OES Fire and Rescue Division as soon as possible, as the first step in a joint resolution process. A-40 The State of California or Federal Fire Agency will remit payment to the California Fire and Rescue Mutual Aid System Agency within 60 calendar days of receipt of invoice (F-142) from Cal OES. A-41 In the event that CAL FIRE or a Federal Fire Agency identifies a discrepancy with an invoice (F-142), Cal OES will provide the California Fire and Rescue Mutual Aid System Agency a new invoice with the corrected invoice amount and the reason for the change. Cal OES has 30 calendar days to make the change and provide a corrected invoice to the California Fire and Rescue Mutual Aid System Agency and either CAL FIRE or the appropriate Federal Fire Agency. A-42 CAL FIRE or the Federal Fire Agency will provide copies of payment schedules to Cal OES for invoices (F-142s) CAL FIRE or the Federal Fire Agency has paid within 60 calendar days of remittance to the California Fire and Rescue Mutual Aid System Agency. Cal OES Fire and Rescue Division will reconcile the payment schedules against outstanding invoices (F-142s) on a monthly basis. A-43 Cal OES will form and chair working groups with membership from the Committee to develop methodologies to streamline the reimbursement process. The State of California and Federal Fire Agencies will work on procedures to improve reimbursement timelines. These activities will be documented and shared with the California Fire and Rescue Mutual Aid System Agencies. A-44 The Terms and Conditions and Exhibits in this Agreement may necessitate new methods of reporting and invoicing. All proposed changes to this Agreement, or associated business processes shall be approved by the State of California or Federal Fire Agencies that are parties to this Agreement. A-45 Reimbursement for emergency apparatus and personnel shall be made directly to the California Fire and Rescue Mutual Aid Agency providing the resource, and NOT to individuals. Packet Pg. 153 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page A-15 06/2017 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Federal Agency Electronic Fund Transfer A-46 Federal agencies require the following for reimbursement to California Fire and Rescue Mutual Aid System Agencies: a) Taxpayer Identification Number (TIN) – This number is applied for and issued by the Internal Revenue Service (IRS). Contact the IRS @ www.irs.gov or (800) 772-1213. b) Electronic Funds Transfer (EFT) – The cooperator shall designate a financial institution or an authorized payment agent through which a federal payment may be made in accordance with US Treasury Regulations, Money and Finance at 31 CFR 208, which requires that federal payments are to be made by EFT to the maximum extent possible. A waiver may be requested and payments received by check by certifying in writing that one of the following situations apply: a. The payment recipient does not have an account at a financial institution. b. EFT creates a financial hardship because direct deposit will cost the payment recipient more than receiving the check. c. The payment recipient has a physical or mental disability, or a geographic language, or literacy barrier. In order to receive EFT payments, the recipient/cooperator shall register in the System for Award Management (SAM). You may register by going to www.sam.gov and follow the instructions provided on-line. For assistance, contact the SAM Assistance Center at (800) 606-8220. c) DUNS Number – The cooperator shall obtain a Dunn and Bradstreet Data Universal Numbering System (DUNS). This is a requirement for registering in SAM. The DUNS number does not replace existing numbers, such as Employer Identification Number (EIN), the Tax Identification Number (TIN), and State Application Identifier (SAI) numbers that are required by statute, Executive Order, or regulation. You may obtain a DUNS number by contacting Dun & Bradstreet via the web at www.dunandbradstreet.com or by phone at (800) 234-3867 or (866) 794-1580. A DUNS number will be provided immediately by telephone at no charge. Packet Pg. 154 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page B-1 01/01/2015 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 The purpose of this Exhibit is to identify the minimum standards that California Fire and Rescue Mutual Aid System Agencies should follow with regard to their use of Type 3 through 7 engines, equipment, personnel, and training standards for mutual aid and/or CFAA-reimbursable responses. The State of California or the Federal Fire Agency Type 3 through 7 Engines have a number of features that enhance their capability to operate on narrow, steep or unimproved roads and to allow the efficient application of water or other agents. The minimum features of the engines are: Short Wheel Base High Ground Clearance High angle of approach & departure Lower Gross Vehicle Weight (GVW) than Type 1 or 2 engine Engine unit # on roof Engine Protection Line: This hose is intended for engine protection and is not to be used for other purposes. Alternatives to meet this include: Live reel with a minimum of 150 feet of hard rubber hose, not less than three-fourths (3/4) inch inside diameter, or a; Hose tray/basket containing a minimum of 150 feet of 1inch National Pipe Straight Hose also known as “iron pipe” threaded fittings (NPSH) or 1-1/2 inch National Hose (NH) cotton/synthetic lined hose, with a combination nozzle, and the hose shall be configured for immediate deployment. Hose shall be connected to the water supply and fully charged. The 150 feet of hose specified here is in addition to the hose specified under components. The fire engine must be equipped with baffles that reduce the shifting of the water load. Most engines should meet this NFPA standard; however, this requirement is also applicable to all water tenders. The main fire pump and water tank shall meet minimum capabilities for the FIRESCOPE ICS Type engine as designated in the current edition of the ICS Field Operations Guide ICS-420-1. The pump, as mounted, shall be capable of drafting water from a water source located 15 feet vertical distance below the pump through the required suction hose. EXHIBIT “B” ICS Type 3, 4, 5, 6, & 7 ENGINE, EQUIPMENT, PERSONNEL, & TRAINING STANDARDS FOR FIRE AND EMERGENCY ASSISTANCE Packet Pg. 155 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page B-2 01/01/2015 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 All engines will have pump and roll capabilities for mobile attack on fire line utilizing a 1.5 inch hose with a 1.5 inch combination nozzle. In addition to live reel hose or hose tray/basket hose:1.5 inch hose will be configured to facilitate progressive hose deployment providing for a l00 foot lateral of 1 inch hose every 200 feet of 1.5 inch trunk line once the fire's edge is encountered. All hose utilized must meet or exceed USDA Specification 5100-186b. One-inch hoses and nozzles will have NPSH; 1inch hose with NH threads shall be provided with a sufficient number of NPSH adapters. One and one-half inch hoses and nozzles will have NH threads with 9 threads per inch. Minimum Engine Equipment Inventory Components Engine Type 3 4 5 6 7 Engine Requirements Tank Minimum Capacity (gal) 500 750 400 150 50 Pump Minimum Flow (gpm) 150 50 50 50 10 At Rated Pressure (psi) 250 100 100 100 100 Pump & Roll Yes Yes Yes Yes Yes Max GVWR (lbs.) 26,000 19,500 14,000 Personnel Minimum Personnel 3 3 3 3 3 Hose Requirements Hose 1.5” 1000 300 300 300 0 Hose 1” 500 300 300 300 200 Hard Suction Hose 8’ or 10’ 2 2 2 2 2 Fill Hose 1.5” x 15’ 1 1 1 1 1 Booster Line min 3/4 inch 100 100 100 100 100 Firefighting Equipment Shovels 2 2 2 2 2 Pulaskis 2 2 2 2 2 McLeod or Combo tool 2 1 1 1 1 Chainsaw with tool kit 1 1 1 1 1 Hose Clamp 1.5” 2 2 2 2 1 Spanner Wrench 1.5” & 1” 2 2 2 2 1 Hydrant Wrench Adjustable 1 1 1 1 1 Adaptor 1.5” NH to 1.5” NPSH 1 1 1 1 1 Adaptor 1.5” NPSH to 1.5” NH 1 1 1 1 1 Double male 1.5” NH 1 1 1 1 1 Packet Pg. 156 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page B-3 01/01/2015 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Components Engine Type 3 4 5 6 7 Firefighting Equipment Double female 1.5” NH 1 1 1 1 1 Double male 1” NPSH 1 1 1 1 1 Double female 1” NPSH 1 1 1 1 1 Gated Hose Tees, 1.5” NH x 1.5” NH x 1” NPSH 4 2 2 2 2 Gated Wyes 1.5” NH x 1.5” NH x 1.5” NH 2 1 1 1 1 Reducers/adaptors 1.5” NH to 1” NPSH 2 1 1 1 1 Nozzle 1.5” Wildland, Adjustable 4 2 2 2 2 Nozzle 1” Wildland, Adjustable 4 2 2 2 2 Class A Foam, 5- gallons 1 1 1 1 1 Drip Torch or Fusees (case) 1 1 1 1 1 Backpack pump, 5-Gallons 2 2 2 2 2 Chock Blocks 1 1 1 1 1 Inventory List of Engine Equipment 1 1 1 1 1 Communications (Programmed per the current edition of the FIRESCOPE Statewide Frequency Channel Plan. Exhibit “D” identifies communications capabilities.) Mobile Radio 1 1 1 1 1 Portable Radio (preferred 1/person) 1 1 1 1 1 Personnel Support Personnel Protection Equipment As in Ex. “B” As in Ex. “B” As in Ex. “B” As in Ex. “B” As in Ex. “B” First Aid Kit/Supplies for Engine Personnel 1 1 1 1 1 Drinking Water for Engine Personnel 24-Hr Supply 24-Hr Supply 24-Hr Supply 24-Hr Supply 24-Hr Supply Food/Rations for Engine Personnel 24-Hr Supply 24-Hr Supply 24-Hr Supply 24-Hr Supply 24-Hr Supply Other/Misc. Special Tools for Engine/Pump Repair Specific to Equipment Specific to Equipment Specific to Equipment Specific to Equipment Specific to Equipment Bolt Cutters 1 1 1 1 1 Fuel Cans/Oils Specific to Equipment Specific to Equipment Specific to Equipment Specific to Equipment Specific to Equipment Other/Misc. Fire Extinguisher 2A10BC 1 1 1 1 1 Highly Recommended/Desirable Items GPS Unit 1 1 1 1 1 Belt Weather Kit or Other Weather Reading Device 1 1 1 1 1 Portablepump with min. ratingof35 GPM 1 1 1 1 1 Equipment Compliment as identified in the Interagency Standards For Fire and Aviation Operations (Redbook), Chapter 14- Firefighting Equipment, and Appendix M-NUS Engine Stocking Level Specific to Engine Type Specific to Engine Type Specific to Engine Type Specific to Engine Type Specific to Engine Type Packet Pg. 157 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page B-4 01/01/2015 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Personal Protective Equipment (PPE) Each employee responding to or engaged in fire suppression activities will use the appropriate safety clothing and equipment. Each department is responsible for seeing that CAL/OSHA standards for safety clothing and equipment are provided and used for wildland firefighting. Wildland fire suppression safety clothing and equipment includes: Safety helmet that meets the minimum standards required by California Code of Regulations (CCR), Title 8, Section 3410 Goggles, protection that meets the minimum requirements for design, construction and use as required by CCR, Title 8, Sections 3382 and 3404. Ear protection to comply with CCR Title 8 Sections 3405 and 3410(c) Nomex hood, shroud, or equivalent face and neck protection Nomex shirt Nomex pants Gloves, CAL/OSHA approved for wildland fire fighting Safety work boots, heavy-duty, lace-type, with deeply lugged soles and heels, and leather tops at least eight inches in height. Headlamps w/spare batteries Chain saw chaps for chainsaw operator Wildland fire shelter Training The State of California and Federal Fire Agencies have the expectation that when a local jurisdiction strike team/task force arrives at an incident it can perform all of the missions that would be expected of the State of California and Federal Fire Agencies’ engine strike teams. . All responding personnel shall be in compliance with the current NWCG 310-1 Sub System Guide or CICCS. Training topics include but are not limited to: Wildland strategy & tactics Backfiring/Firing-out Wildland fire behavior Handline construction Wildland hoselays Structure triage Wildland fire safety Structure defense preparation Fireground communications Fire weather Packet Pg. 158 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page C-1 06/2017 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Clause A-34 authorizes the reimbursement of personnel and transportation costs incurred to replace California Fire and Rescue Mutual Aid System Agency personnel committed to extended assignments under this Agreement. Personnel under this Agreement are to be available a minimum of seven days excluding travel (portal to portal) before needing replacement, regardless of the number of assignments. This exhibit lists the procedures necessary for a local jurisdiction to follow before reimbursement for their costs will be processed for rotation of their personnel. These procedures only apply when the emergency apparatus remains assigned to the incident but the personnel are rotated. The procedures are: C-1 The incident commander (IC) or Mobilization (MOB) center manager to which the resources are assigned must approve the personnel rotation and method of transportation. Such approval should not be denied without substantial cause, (e.g., imminent planned release (24 – 36 hours)) of the resources, or a negotiated extension through the Cal OES Fire Agency Representative. The personnel rotation and transportation plan must be coordinated through the incident, the ordering point, agency representative, and/or the overhead responsible for the personnel to be rotated. C-2 The approved personnel rotation will be documented in: C-2.1 The approved automated resource ordering and status system of record (ROSS) The resource order will be annotated in the documentation section by the incident indicating the date and time of personnel rotation approval. Subsequently the home unit/filling command center will add documentation to include the following information: 2.1.a. Method/Mode, date and time of transportation. 2.1.b. An ICS General Message Form-213/Rotation Job Aid Template designed specific for personnel rotation must be signed by the IC or MOB center manager approving the rotation. This form shall be attached to the respective F-42 associated with the rotation vehicle and overlapping time of personnel. C-2.2 F-42 “Emergency Activity Record” 2.2.a. Box 12 of the original F-42 will document any personnel rotation with the date and time of the rotation for all individuals whether or not the personnel rotation will be reimbursed. EXHIBIT “C” REIMBURSEMENT FOR PERSONNEL ROTATION Packet Pg. 159 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page C-2 06/2017 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 2.2.b. ONLY when a fire agency is requesting reimbursement for an approved personnel rotation that includes transportation cost will a new F-42 be required (Personnel Information, Box 11 & Support Vehicle Information, Box 8 on F-42 and referenced to the original “E” number, Box 12). 2.2.b.1 For approved personnel rotation documented only in the documentation section, a copy of the resource order must be submitted with the F-42. 2.2.c. Invoices (F-142’s) will identify personnel involved in any rotation and will itemize the costs of transportation for personnel rotations with support documentation. C-2.3 ICS-214 Unit Log 2.3.a. Details of personnel rotation need to be documented (Unit Logs to be retained on file by individual fire agency). If both the emergency apparatus and the personnel need replacement, the resources will be released and a new resource will be ordered. Packet Pg. 160 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page D-1 01/01/2015 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 It shall be the responsibility of the agency sending mutual aid resources to ensure that those resources have adequate communications capabilities. Adequate communications capability is defined as VHF Highband radios with a minimum of 240 channels and pre-programmed with the most current FIRESCOPE STATEWIDE FREQUENCY CHANNEL PLAN. Emergency apparatus used for mutual aid will have a mobile VHF Highband radio (powered by the emergency apparatus battery and connected to an external antenna) and a minimum of one portable VHF Highband radio. The VHF Highband portable radio should be capable of being operated by alkaline batteries. Strike Team/Task Force Leaders: In addition to the communications capability required for emergency apparatus, Strike Team/Task Force Leaders are encouraged to respond with a conventional 800 MHz radio pre-programmed with the 800 MHz mutual aid channels as identified in FIRESCOPE STATEWIDE FREQUENCY CHANNEL PLAN. For Narrowband Radios: On January 1, 2013, all public safety and business industrial land mobile radio systems operating in the 150-512 MHz radio bands must cease operating using 25 kHz efficiency technology, and begin operating using at least 12.5 kHz efficiency technology. This deadline is the result of an FCC effort that began almost two decades ago to ensure more efficient use of the spectrum and greater spectrum access for public safety and non-public safety users. Migration to 12.5 kHz efficiency technology (once referred to as Refarming, but now referred to as Narrowbanding) will allow the creation of additional channel capacity within the same radio spectrum, and support more users. After January 1, 2013, licensees not operating at 12.5 KHz efficiency will be in violation of the Commission's rules and could be subject to FCC enforcement action, which may include admonishment, monetary fines, or loss of license. Agencies shall ensure that local radio channels are not utilized outside of the agency’s licensed area of operation. Agencies should provide a minimum of 4 hours of annual basic radio training for Division Supervisors, Strike Team Leaders, and single resource leader positions. EXHIBIT “D” COMMUNICATIONS CAPABILITIES Packet Pg. 161 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page E-1 01/01/2015 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 The purpose of this Exhibit is to identify the minimum standards that California Fire and Rescue Mutual Aid System Agencies should follow in regard to their use of tactical water tender, equipment, personnel, and training standards for mutual aid and/or CFAA reimbursable responses. The State of California or the Federal Fire Agency tactical water tender has a number of features that enhance its capability to operate on narrow, steep or unimproved roads to allow the efficient distribution of water. The minimum features of the tactical water tender are: Short wheelbase High ground clearance High angle-of-approach & departure Engine unit # on roof The tactical water tender must be equipped with baffles that reduce the shifting of the water load. The fire pump and water tank shall meet minimum capabilities for the FIRESCOPE ICS tactical water tenders as designated in the current edition of the ICS Field Operations Guide ICS-420-1. A portable pump, with a minimum rating of 35 GPM is desirable. If pump and roll capability is requested, tactical water tenders should utilize a 1.5 inch hose with a 1.5 inch combination nozzle. If needed, 4-wheel drive must be requested If needed, a class A foam system must be requested Live reel hose or hose tray/basket Hard suction hose with strainer Soft suction hose All hose utilized must meet or exceed USDA Specification 5100-186b. One-and-one-half inch hoses and nozzles will have NH threads with 9 threads per inch. Recommended Minimum Tactical Water Tender Equipment Inventory 3 inch fire hose NH Thread 300 Feet 1.5 inch fire hose NH Thread 200 Feet Shovel 1 Adjustable hydrant wrench 2 Combination 1-1/2 inch nozzle 3 Pulaski 1 EXHIBIT “E” ICS TACTICAL WATER TENDER, EQUIPMENT, PERSONNEL, AND TRAINING STANDARDS FOR FIRE AND EMERGENCY ASSISTANCE Packet Pg. 162 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page E-2 01/01/2015 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 McLeod or combination tool 1 Spanner wrench 3 Double male, 1.5 inch NH 1 Double female, 1.5 inch NH 1 Double male, 2.5 inch NH 1 Double female, 2.5 inch NH 1 Reducer/Adapters, 2.5 inch NHF to 1.5 inch NHM 1 Fusees (case) or drip torch 1 Water, drinking 3 gallons First Aid Kit, 5-person 1 Communications 1-mobile radio, minimum 1-portable radios (preferred 1-per assigned personnel). **Programmed per the current edition of the FIRESCOPE Statewide Frequency Channel Plan. Exhibit “D” identifies communications capabilities. Personal Protective Equipment (PPE) Each employee responding to or engaged in fire suppression activities will use the appropriate safety clothing and equipment. Each department is responsible for seeing that CAL/OSHA standards for safety clothing and equipment are provided and used for wildland firefighting. Wildland fire suppression safety clothing and equipment includes: Safety helmet that meets the minimum standards required by California Code of Regulations (CCR), Title 8, Section 3410. Goggles, protection that meets the minimum requirements for design, construction and use as required by CCR, Title 8, Sections 3382 and 3404. Ear protection to comply with CCR, Title 8, Sections 3405 and 3410(c). Nomex hood, shroud, or equivalent face and neck protection. Nomex shirt Nomex pants Gloves, CAL/OSHA approved for wildland firefighting. Safety work boots, heavy-duty, lace-type, with deeply lugged soles and heels, and leather tops at least eight inches in height. Wildland fire shelter Packet Pg. 163 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page E-3 01/01/2015 Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Training The State of California and Federal Fire Agencies have the expectation that when a local jurisdiction tactical water tender arrives at an incident it can perform all of the missions that the State of California and Federal Fire Agencies’ tactical water tenders can. All responding personnel shall be in compliance with the current NWCG 310-1 Sub System Guide or CICCS. Training topics include but are not limited to: Wildland strategy & tactics Backfiring/Firing-out Wildland fire behavior Handline construction Wildland hose lays Structure triage Wildland fire safety Structure defense preparation Fireground communications Fire weather Packet Pg. 164 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page F-1 01/01/2015 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Hourly Rate= Depreciation + Overhead + Overhaul Labor + Overhaul Parts + Field Labor +Field Parts + Fuel + Lube + Tires Where: Depreciation= (Acquisition Cost – Salvage Value) / Economic Life Generally Acquisition Cost = (1 – [Discount % / 100]) * (List Price + Sales Tax + Freight Cost) Hourly Overhead = Overhead / 2112 hours Where Overhead represents annual equipment overhead costs resulting directly from equipment ownership, the costs include such things as normal risk insurance, storage and security, inspection, and licenses. Profit, project overhead, and general overhead costs are not included in this number. 2112 hours is an annual equipment ownership baseline. Overhaul Labor = (Annual Overhaul Labor Hours * Mechanic’s Wage) / 2112 Overhaul Parts = Annual Overhaul Parts Cost / 2112 Field Labor = (Annual Field Repair Labor Hours * Mechanic’s Wage) / Average Annual Use Hours Field Parts = (Annual Field Repair Parts Cost + Miscellaneous Supply Parts Cost) / Average Annual Use Hours Fuel = Average Annual Fuel Cost / Average Annual Use Hours or Fuel = Hourly Fuel Consumption Rate * Unit Cost of Fuel Lube = Annual Lube Cost / Average Annual Use Hours Tires = Tire Cost / Tire Life ** You may also use FEMA’s Special Use Equipment Formula at http://www.caloes.ca.gov/FireRescueSite/Pages/Reimbursement.aspx** EXHIBIT “F” FEMA EQUIPMENT RATE FORMULA Packet Pg. 165 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page G-1 05/01/2016 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 This Exhibit applies to Cal OES and the Federal Fire Agencies only. The California Fire and Rescue Mutual Aid System Agencies shall use the following procedures to secure reimbursement for the provision of personnel and local government-owned emergency apparatus ordered for use on Federal incidents outside the State of California. Reimbursement of personnel, emergency apparatus, and support equipment will be consistent with Exhibit “A” Reimbursement Policy and Procedures with the following exceptions: 1. Travel costs for lodging, per diem and rental vehicles for personnel shall be reimbursed at the rates and methods established within Exhibit “H”, limited to the California State Standard Per Diem Rates in effect at the time of the response. Lodging expense will follow the “all counties/cities located in California” up to $90.00 per night, plus tax. Exceptions will be handled case by case with formal documented and written approval. 2. Reimbursement for Cal OES-owned communications equipment (e.g., cell and satellite phones or air and phone credit cards) will be at the total actual cost to the State of California. 3. Reimbursement invoices for Cal OES personnel, travel, and equipment will be on an actual cost basis, supported by accounting records, payroll records, and/or activity cards. Invoices for Cal OES resources should be submitted no later than 5 months after the end of the incident. 4. Invoices for Cal OES resources will include an administrative rate as determined by the State of California under the Office of Management and Budget (OMB) Super Circular, Title 2 in the Code of Federal Regulations (2 CFR), Subtitle A, Chapter II, part 225 (A-87). 5. Length of assignments for resources responding to incidents outside the State of California will be consistent with the appropriate Federal Fire Agency’s policy. Conditions in Clause A -34 of Exhibit “A” concerning minimum of seven days (elapsed time), excluding travel , will not apply to resources responding to requests outside the State of California. Federal Fire Agency policy on the length of an assignment outside the state is defined as the time period (days) between the first full operational period at the first incident or reporting location on the original resource order and commencement of return travel to the home unit. Standard assignment length is 14 days, exclusive of travel from and to home unit. Time spent in staging and preposition status counts toward the 14 day limit, regardless of pay status, for all personnel, including Incident Management Teams. EXHIBIT “G” REIMBURSEMENT POLICY AND PROCEDURES FOR OUTSIDE THE STATE OF CALIFORNIA ASSIGNMENTS Packet Pg. 166 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page H-1 06/2017 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 The purpose of this exhibit is to identify allowable costs and the process for submitting such cost for in- state travel and incident related expenses. This exhibit primarily pertains to costs associated with fuel, food, vehicle and lodging costs as stated in Clauses A-33 and A-35 of Exhibit “A”, as well as attributable incident expenses such as loss or damage to local agency emergency apparatus or support equipment identified in Recital 25 of this Agreement. In some cases, miscellaneous expenses outside of the above mentioned may be approved if the incident finds that the expense(s) is also attributable to the incident. In order for local agencies to be eligible for reimbursement of expenses related to this exhibit for lodging and per diem, the approval MUST be formally documented in writing by the approving State of California or Federal Fire Agency responsible for an incident by using a General Message Form ICS-213 and/or provide the associated “S#” validating the expense(s) on both the General Message Form ICS-213 and the Form F-42. In order for local agencies to be eligible for reimbursement of expenses related to this exhibit for all other expenses such as loss or damage, the approval MUST be formally documented in writing by the approving State of California or Federal Fire Agency responsible for an incident by using a General Message Form ICS-213 AND provide the associated “S#” validating the expense(s) on both the General Message Form ICS-213 and the Form F-42. In both cases, when the General Message Form ICS-213 is used, it must be signed by one of these three positions: Incident Commander, Finance Section Chief or Incident Business Advisor. NOTE: S#’s and approved General Message Form ICS-213 should ONLY be issued when the incident cannot accommodate the expense in need, and all other options to provide the expense(s) have been exhausted. Approved out of pocket expense(s) must accompany the F-42 along with the formal approval on the General Message Form ICS-213 documenting the S#, the itemized receipt(s), and the In State Travel and Incident Related Expense Log. Receipts for meals and incidentals are not required. All other receipts must be taped to an 8 ½ x 11 sheet of paper in date order. All sides of the receipts must be taped and legible; photo copies are preferred. EXHIBIT “H” IN-STATE TRAVEL AND INCIDENT RELATED EXPENSES Packet Pg. 167 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page H-2 06/2017 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Rental Vehicles This section of Exhibit “H” is to identify both allowable and non-allowable expenses when renting a vehicle. Items listed adhere to the state rental agreement. Items listed below are NOT allowable expenses: Personal accident insurance, personal effects coverage or other optional coverage No pre-payment of fuel or refueling No payment of extension costs or late return Airport pickups are discouraged Airport parking fees GPS unit Road Side Service Damage attributable to the incident may be local government fire agency responsibility Items listed below are REQUIRED to secure reimbursement: Vehicle returned with a full tank Exit invoice Use of economy vehicle recommended Vehicle determination should be based on your incident position, unless you are carpooling At time of rental you may need to make remarks on your contract that this vehicle is going to an incident base camp and may be driven off pavement If your agency provides a travel/expense card, rental and fuel must be paid by agency card *All other considerations must have prior approval from the incident.* Packet Pg. 168 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page H-3 06/2017 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Rental vehicle reimbursement will use the state rates listed below as the maximum allowable charge: STATE OF CALIFORNIA SHORT TERM PROGRAM RENTAL RATES TABLE EFFECTIVE, JANUARY 1, 2017, WILL BE USED FOR A MAXIMUM AMOUNT ALLOWABLE FOR REIMBURSEMENT. Class Type Sample Vehicle Daily Rates Weekly Rates Compact Nissan Versa $33.00 $132.00 Mid-Size/Intermediate Hyundai Elantra $33.00 $132.00 Standard Buick Verano $35.00 $140.00 Full Size Nissan Altima $35.00 $140.00 Hybrid Electric/Plug-In Zero Emission Vehicle Toyota Prius $42.00 $168.00 Compact SUV Jeep Renegade $56.00 $224.00 Medium SUV Hyundai Santa Fe $88.00 $525.00 Pick Up Truck Ram 1500 $70.00 $280.00 3/4-Ton/ 1-Ton Pick Up Truck Chevy Silverado $90.00 $450.00 Mini Van Dodge Grand Caravan $56.00 $224.00 Mini Van (8 Passengers) Toyota Sienna $91.00 $480.00 Large Van Ford Transit Wagon $121.00 $726.00 Mini-Cargo Van Ram Promaster City $80.00 $400.00 15" Cutaway Box Van w/ramp Transit Connect $66.00 $350.00 16" Box Truck $70.00 $425.00 24" Box Truck $85.00 $500.00 26" Box Truck $100.00 $500.00 14" Stake Bed $85.00 $425.00 24" Stake Bed $100.00 $500.00 When renting a vehicle beyond four days, assigned personnel will utilize the weekly rate through the (7) seventh day. Any days thereafter that do not constitute a week (7 days) will be considered a daily rate. Packet Pg. 169 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page H-4 06/2017 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Included in State of California Program Rates-Short Term: Unlimited mileage, Collision Damage Waiver (CDW), and $300,000 Supplemental Liability Protection (SLP). Drop Charges: There will be no drop charges for any vehicles that are picked up and returned at an alternative Rental Branch location within the US with the exception of New York. CDW for Business Rentals: Rates include full CDW (Collision Damage Waiver) with no deductible. CDW will cover any physical damage to the vehicle that may occur during a rental and is subject to the terms and limitations set forth in Enterprise’s standard rental contract. See additional slide for exclusions. SLP for Business Rentals: Rates include SLP (Supplemental Liability Protection). SLP will cover up to $300,000 in liability claims that may occur during a rental, as the result of an accident, and is subject to the terms and limitations set forth in Enterprise’s standard rental contract. Damage Waiver Exclusion-Off road use: Operation of any vehicle that was not properly designed for the intended use. Excessive vehicle wear and tear, due to off-road operation, that may include: Tire punctures or missing chunks of tread Impact Damage (body panels or undercarriage) defined as follows: Scratches larger than 2” or multiple scratches per panel penetrating the paint Dents larger than 2” or multiple dents per panel Impact to undercarriage that will require repair in order to maintain the drivability of the vehicle Rips in upholstery, missing or broken interior components Soot, smoke or stain damage requiring professional cleaning There are several options available to your agency and/or personnel for payment under the State of California Contract: Direct bill account set up by your Agency Agency Corporate Credit Card Agencies can use account number XZCPFIR, and renters can choose to use their own payment method. Rental vehicles authorized on the resource order do not need additional incident approval. The cost of the rental vehicle, if incurred by the local agency, and the fuel purchased to operate the rental vehicle must be submitted on the Travel and Incident Related Expense Log with receipts taped or photo copied. Rental vehicles that are not authorized on the resource order must receive the formal written approval from the incident as identified on page H-1 of this exhibit. Packet Pg. 170 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page H-5 06/2017 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Documentation Requirements for Reimbursement of Expenses Check List: General Message Form 213 signed by the Incident Commander, Finance Section Chief of Business Advisor S# documented on the General Message Form 213 and F-42 F-42 Travel and Expense Log with expense documented in date order Receipt(s)* taped on all sides to an 8 ½ x 11 sheet of paper in date order (photocopies preferred) *Receipt(s) for meals and incidentals are not required with the exception of an individual who is purchasing on behalf of other response personnel. You will be required to provide a listing/manifest/roster of personnel and agency MACS ID associated with your purchases not to exceed the below per diem rates per meal for each person. If renting a vehicle, must submit exit invoice. In addition to the required S# and General Message Form 213, for loss or damage reimbursement to a local agency emergency apparatus or support equipment: Investigation/Incident Report Photos if available If costs are associated with food or lodging, the reimbursement will be limited to the California Standard Per Diem Rates in effect at the time of response: Breakfast - $7.00 Lunch - $11.00 Dinner - $23.00 Incidentals - $5.00 (only after the first 24 hours) Lodging: All Counties/Cities located in California (except as noted below): o Actual lodging expense, supported by a receipt, up to $90 per night, plus tax. Napa, Riverside, and Sacramento Counties: o Actual lodging expense, supported by a receipt, up to $95 per night, plus tax. Marin County: o Actual lodging expense, supported by a receipt, up to $110 per night, plus tax. Los Angeles, Orange, and Ventura Counties and Edwards AFB, excluding the city of Santa Monica: o Actual lodging expense, supported by a receipt, up to $120 per night, plus tax. Packet Pg. 171 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page H-6 06/2017 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 San Diego and Monterey County: o Actual lodging expense, supported by a receipt, up to $125 per night, plus tax. Alameda, San Mateo, Santa Clara Counties: o Actual lodging expense, supported by a receipt, up to $140 per night, plus tax. City of Santa Monica: o Actual lodging expense, supported by a receipt, up to $150 per night, plus tax. San Francisco o Actual lodging expense, supported by a receipt, up to $250 per night, plus tax. Packet Pg. 172 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page H-7 06/2017 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 Reimbursement Log at http://www.caloes.ca.gov/FireRescueSite/Pages/Reimbursement.aspx** Packet Pg. 173 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page I-1 05/01/2016 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 1. ACTUAL HOURS shall mean on shift time which includes a specific start and ending time and is recorded as clock hours. On shift time includes actual work, ordered standby and compensable travel. Individuals are required to report to their designated work site as scheduled, ready and willing to perform work safely. 2. ADMINISTRATIVE RATE shall mean a pre-established percentage charge that may be applied by the billing agency as determined by the CFAA Committee. 3. AGENCY REPRESENTATIVE shall mean the ICS position that serves as the point of contact for an assisting or cooperating agency that has been delegated authority to make decisions on matters affecting that agency’s participation at the incident and reports to the Liaison Officer. 4. ANNUAL OPERATING PLAN shall mean a plan developed at the State, Geographic, or local levels for the implementation of administrative or operational practices or concerns. 5. ASSISTANCE BY HIRE shall mean fire suppression resources needed to fill the incident order that are to be paid for by the protecting agency. 6. BUREAU OF INDIAN AFFAIRS shall mean a federal bureau under the Department of the Interior charged with the responsibility to provide wildland fire protection and suppression for trust lands of federally recognized Native American Tribes. 7. CALIFORNIA FIRE AND RESCUE MUTUAL AID SYSTEM AGENCIES shall mean agencies, departments, or institutions to which Cal OES has, through agreement, assigned Cal OES-owned emergency apparatus; or who provide locally owned resources under provisions of the California Fire and Rescue Mutual Aid System. These agencies may also be referenced as, however, not be limited to, "local government" or "local agency". 8. CALIFORNIA MOBILIZATION GUIDE shall mean the interagency procedures for requesting, documenting, and sending resources to incidents within the State of California. EXHIBIT “I” DEFINITIONS Packet Pg. 174 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page I-2 05/01/2016 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 9. CALIFORNIA WILDLAND COORDINATING GROUP shall mean the executive level interagency committee made up of representatives from the USDA Forest Service, California Department of Forestry and Fire Protection, USDI Bureau of Land Management, USDI National Park Service, USDI Bureau of Indian Affairs, USDI Fish and Wildlife Services, contract counties representative, and the California Governor’s Office of Emergency Services. 10. COMPENSATE shall mean to give money in return for something such as work or payment for something lost or damaged. 11. DEMOBILIZATION CENTER/FACILITY shall mean that location or facility established at or near an incident for the processing of emergency apparatus and personnel prior to release to its home base. 12. DEPARTMENT OF DEFENSE FIRE DEPARTMENT shall mean any organization managed by the Department of Defense for preventing and putting out fires principally on military installations. 13. EMERGENCY APPARATUS shall mean any emergency response equipment or apparatus provided through the California Fire and Rescue Mutual Aid System. 14. EMERGENCY PERSONNEL shall mean any personnel responding on or with emergency apparatus and requested overhead personnel. 15. FEDERAL FIRE AGENCIES shall mean the USDA Forest Service, Pacific Southwest Region; the USDI Bureau of Land Management, California Office; the USDI National Park Service, Pacific West Region; USDI Fish and Wildlife Service, Pacific Southwest Region, and USDI Bureau of Indian Affairs, Pacific Region. 16. FEDERALLY RECOGNIZED TRIBE shall mean an American Indian or Alaska Native tribal entity that is recognized as having a government-to-government relationship with the United States, with the responsibilities, powers, limitations, and obligations attached to that designation, and are eligible for funding and services from the Bureau of Indian Affairs. 17. GOVERNING BODY RESOLUTION (GBR) shall mean a formal declaration of the governing body concerning a certain subject which it either cannot or does not wish to control by ordinance. 18. HOME UNIT shall mean the geographical location an individual is normally assigned to work. Packet Pg. 175 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page I-3 05/01/2016 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 19. INCIDENT shall mean an occurrence or event, either human-caused or natural phenomena, that requires action by emergency service personnel to prevent or minimize loss of life or damage to property and/or natural resources. 20. INCIDENT COMMAND SYSTEM (ICS) shall mean a standardized on-scene emergency management concept specifically designed to allow its user(s) to adopt an integrated organizational structure equal to the complexity and demands of single or multiple incidents, without being hindered by jurisdictional boundaries. 21. INCIDENT COMMANDER shall mean the ICS position responsible for overall management of the incident and reports to the agency administrator for the agency having incident jurisdiction. This position may have one or more deputies assigned from the same agency or from an assisting agency(s). 22. INCIDENT MANAGEMENT TEAM (IMT) shall mean the incident commander and appropriate command and general staff assigned to an incident. 23. INTERAGENCY shall mean involvement of two or more agencies to an agreement. 24. LOCAL AGENCY shall mean any city, city and county, county, or special district. 25. LOCAL AGREEMENT shall mean a pre-defined area agreement that includes that portion of the geographical jurisdictions of both the local reciprocal agreement signatories on which they have historically, frequently and continuously cooperated in initial and extended attack. 26. LOCAL JURISDICTION shall mean any political subdivision of government. 27. MOBILIZATION CENTER shall mean an off-incident location at which emergency apparatus and personnel are temporarily located pending assignment, release or reassignment. 28. MOU/MOA shall mean a memorandum of understanding or memorandum of agreement, which is a formal business document used to outline an agreement made between two separate entities, groups, or individuals. 29. MUTUAL AID shall mean an agreement in which two or more parties agree to furnish resources and facilities and to render services to each party of the agreement to prevent and combat any type of disaster or emergency. 30. NON SUPPRESSION PERSONNEL shall mean personnel who occupy a civilian position within a fire agency. Packet Pg. 176 Item 15 Cal OES# 6051-4 CAL FIRE# 7CA02564 USFS# I5-FI-11052012-107 NPS# P14AC01610 BLM# BAA151002 FWS# FFF300008-15-002 BIA# A15ACPRO01 Page I-4 05/01/2016 Agreement Between OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA 2015 31. POLITICAL SUBDIVISION shall mean any city, city and county, county, district, or other local governmental agency or public agency authorized by law. 32. PORTAL TO PORTAL shall mean the time of initial dispatch from home base to the time of return to home base. 33. REIMBURSEMENT shall mean to pay someone/agency an amount equal to an amount that agency has spent or where the agency has accrued a financial liability. 34. SALARY SURVEY refers to the form used to establish rates for reimbursement filed with Cal OES Fire and Rescue Division. 35. STAGING AREA shall mean the location where emergency apparatus and personnel are assigned to an incident for deployment on a three-minute availability status. 36. STRUCTURAL FIRE PROTECTION shall mean fire suppression within a structure. 37. STRUCTURE DEFENSE shall mean the protection of homes or other structures from wildland fire before the fire reaches the structure; exterior fire protection measures. 38. SUPPLEMENTAL PERSONNEL shall mean overhead tied to a local fire department generally by agreement who are mobilized primarily for response to incidents/wildland fires outside of their district or mutual aid zone. They are not a permanent part of the local fire organization and are not required to attend scheduled trainings, meetings, etc., of the department staff. 39. SUPPRESSION PERSONNEL shall mean personnel who routinely respond to emergencies. 40. TRIBAL FIRE DEPARTMENT shall mean a tribal entity with suppression and or all-risk response capabilities. Packet Pg. 177 Item 15 RESOLUTION NO. 10624 (2015 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, IDENTIFYING THE TERMS AND CONDITIONS FOR FIRE DEPARTMENT RESPONSE AWAY FROM THEIR OFFICIAL DUTY STATION AND ASSIGNED TO AN EMERGENCY INCIDENT WHEREAS, the City of San Luis Obispo ( "City ") is a public agency located in the County of San Luis Obispo, State of California, and WHEREAS, it is the City's desire to provide fair and legal payment to all its employees for time worked; and WHEREAS, the City employs fire emergency response personnel including: Battalion Chiefs, Fire Captains, Engineers, Firefighters; and WHEREAS, the City and its Fire Department participates in mutual aid responses to emergencies outside the City and County; and WHEREAS, the City incurs staffing costs for Battalion Chiefs, Fire Captains, Engineers, Firefighters from portal to portal when these employees are responding to a mutual aid request for assistance; and WHEREAS, the City will compensate its employees portal to portal while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or pre - positioned for emergency response; and WHEREAS, the City will compensate its employees overtime in accordance with their current Memorandum of Understating while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or pre - positioned for emergency response; and WHEREAS, the City of San Luis Obispo will seek reimbursement for qualifying mutual aid responses such that all City costs, including but not limited to personnel, apparatus, equipment, and administrative costs, such that responses to reimbursement- qualifying mutual aid responses do not have a net negative impact on the City's financial position. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: a) Personnel shall be compensated according to Memorandum of Understanding MOU), Personnel Rules and Regulations, and /or other directive that identifies personnel compensation in the workplace. R 10624 Packet Pg. 178 Item 15 Resolution No. 10624 (2015 Series) Page 2 b) In the event a personnel classification does not have an assigned compensation rate, a Base Rate" as set forth in an organizational policy, administrative directive or similar document will be used to compensate such personnel. c) The San Luis Obispo Fire Department will maintain a current salary survey or acknowledgement of acceptance of the "Base Rate" on file with the California Governor's Office of Emergency Services, Fire Rescue Division. d) City Fire Department response personnel will be compensated (portal to portal) beginning at the time of dispatch to the return to jurisdiction when equipment and personnel are in service and available for agency response. e) Fire Department response personnel include: Fire Chief, Deputy Fire Chief, Battalion Chief, Fire Captain, Engineer, and Firefighter. 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 2nd day of June 2015. M y an Marx ATTEST: 1-,- nthon J. City Clerk Packet Pg. 179 Item 15 Resolution No. 10624 (2015 Series) Page 3 APPROVED rAS ' TO FORM: 1 Clvristi e Detrick 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 z c - l s— C- ony J. M , , ity Clerk Packet Pg. 180 Item 15 Meeting Date: 6/5/2018 FROM: Daryl Grigsby, Director of Public Works Prepared By: Isaac Shuck, Fleet Maintenance Supervisor SUBJECT: POLICE PATROL VEHICLE REPLACEMENTS RECOMMENDATION 1. Approve the replacement of one Police Patrol Utility vehicle that was damaged beyond repair under project specification no. 91671. 2. Appropriate $50,000 from the Fleet Contingency Fund for replacement of the vehicle in recommendation No. 1. 3. Authorize the Finance Director to transfer $4,000 from project specification no. 90478 to specification no . 91590 and $4,000 from project specification no. 91472 to specification no. 91591; and 4. Authorize the Finance Director to execute a purchase order to Perry Ford of San Luis Obispo in the amount of $154,449.93 for the purchase of three 2018 Ford Utility Po lice Interceptors, including third party Police equipment installation by Emergency Vehicle Specialists of San Luis Obispo; and 5. Authorize the surplus designation of Fleet Asset No. 1307, 1308, and 1511 by sale, auction, trade-in or other method in accordance with the City’s policies and procedures as prescribed in the Financial Management Manual Section 405-L and 480. DISCUSSION This staff report discusses and makes recommendations for the replacement of three Police Department vehicles. Two vehicles are being replaced as approved under the FY 2017-19 Financial Plan and one is being replaced due to significant damage that occurred as a result of a traffic collision and is beyond financial repair. Wrecked Patrol Vehicle Fleet Asset 1512, a 2015 Ford Police Utility Interceptor Patrol vehicle, was involved in a traffic collision in November of 2017. The vehicle was evaluated by both Fleet staff and local repair body shops to determine the cost associated with fixing the vehicle for everyday use. It was determined that the cost of repairs would exceed the vehicle value and projected useful life that remains. The vehicle has a little over 78,000 odometer miles and 7,800 engine hours. The engine hours equate to a little over 225,000 odometer miles and is significant when considering the major cost to fully restore the vehicle to pursuit condition required of these vehicles . Due to the significance of the damage, there could be safety concerns at higher pursuit speeds if the repairs were performed but did not restore the vehicle to full factory conditions. Packet Pg. 181 Item 16 This vehicle was previously projected for replacement in the 2019 -2020 financial plan, two years after a major expense that might not return the vehicle to full use by the Police Department. Weighing all these factors, the Fleet Supervisor recommends accelerating the replacement of this vehicle to the current 2017-18 fiscal year in order to minimize life cycle costs of this asset to the City. Because the replacement was not foreseen in this Financial Plan appro priating funds from the reserve within the Fleet Fund is necessary and a recommendation of this report . The City attorney is pursuing cost recovery to offset some of the replacement costs. Approved Replacement Vehicles The replacement of City asset s no. 1307 and 1308, both 2013 Ford Utility Interceptor Patrol vehicles, was approved as part of the 2017-19 Financial Capital Improvement Plan. Both vehicles are used daily by the Police Department for routine patrol, incident response, public safety, and emergency response. Both vehicles currently have over 90,000 odometer miles and close to 10,000 engine hours. The engine hours equate to over 275,000 odometer miles equivalent. Cooperative Purchase versus Local Purchase Pursuant to City purchasing guidelines, staff recommends a purchase award to Perry Ford of San Luis Obispo in the amount of $154,449.93 for the purchase of three 2018 Ford Utility Police Interceptors, including third party Police equipment installation by Emergency Vehicle Specialists (EVS) of San Luis Obispo. As required in the purchasing guidelines, staff explored use of a multi-year cooperative purchasing agreement with the National Joint Powers Alliance (NJPA) to purchase the three Ford Utility Police Interceptors. This resulted in quotes totaling $156,367.66 through its approved Ford dealer, National Auto Fleet Group. including third party Police equipment installation by Emergency Vehicle Specialists, that met City specifications. Per City purchasing guidelines, staff contacted the local Ford dealer, Perry Ford of San Luis Obispo, for comparison pricing, and received quotes totaling $154,449.93; a difference and savings of $1,917.73. CONCURRENCES The Police Department concurs with the replacement vehicle recommendations made in this report. FISCAL IMPACT Wrecked Vehicle Funding for this vehicle replacement was not anticipated in the 2017 -19 Financial Plan. Due to this accident, staff recommends Council approve a new capital project, Specification No. 91671, for the Police vehicle replacement and the transfer of $50,000 from the Fleet Contingency Fund to support this purchase and final outfitting of the vehicle. The Fleet Contingency Fund was created for emergency off cycle fleet purchases due to accidents or damage beyond repair. The Fleet Contingency Fund currently has a balance of $500,000. The City attorney is working on cost recovery, however, due to the circumstances surrounding the incident and the value of the vehicle, any funds received will be delayed and only cover a portion o f the replacement costs. If funds are received, they will be returned to the Fleet Contingency Fund. Packet Pg. 182 Item 16 Approved Replacements The replacement of Police vehicles assets no. 1307 and 1308, was approved for replacement in the 2017-19 Financial Plan for FY 2017-18 (pg. E2-66). In an effort to reduce fuel usage, emissions, and engine wear for Police Patrol vehicles, Fleet staff has researched anti-idling equipment that can be installed to shut the engine off when the vehicle is at an idle. Police Patrol vehicles are outfitted with computer equipment, electronics, and equipment that require constant power and the engine to remain running when in use. Outfitting these Patrol vehicles with anti- idling systems will reduce the need for the engine to remain running while powering the electronics and computer systems. With Police Patrol vehicles using a little over a 1/3 rd of the gasoline used annually by the general fleet, staff predicts a reduction of fuel use that will offset the additional up-front cost for this equip ment to be installed. Once in service, Fleet staff will be able to compare fuel usage to current active units. Due to the additional costs of the anti-idling equipment described above and unexpected vehicle and Police equipment price increases, there is a funding shortfall. Though the budget for each vehicle is $51,000, the vehicle purchase cost is $53,189.71, leaving a funding shortfall of $2,189.71 per vehicle. Additionally, $1,800 will be needed for final outfitting by Fleet staff and the installation o f the Police decals. Staff has identified fleet savings to cover the shortfall in two other Police vehicle replacement accounts that will bear no impact to those projects. Staff recommends transferring $4,000 from specification no. 90478 to specification no. 91590, and $4,000 from specification 91472 to specification no. 91591 to cover the budget shortfall. Project Costs 91671 - Patrol Vehicle Replacement (Wrecked)$48,070.51 91590 - Patrol Vehicle Replacement $53,189.71 91591 - Patrol Vehicle Replacement $53,189.71 Total Costs $154,449.93 Project Budgets & Transfers 91671 - Transfer from Fleet Contingency Fund $50,000.00 91590 - Budget $51,000.00 91591 - Budget $51,000.00 90478 to 91590 Transfer $4,000.00 91472 to 91591 Transfer $4,000.00 Total Budget $160,000.00 Balance for Final Outfitting & Decals $5,550.07 Packet Pg. 183 Item 16 ALTERNATIVE Deny Funding Transfer and Purchase. The Council could choose to deny or defer the Police vehicle replacement purchases. Staff does not recommend this option as two vehicle replacements were approved as part of the 2017-19 Financial Plan (2017-18). Denying or deferring purchase will result in higher than normal maintenance and repairs and possible powertrain failure. Denying funding for the replacement of the third wrecked vehicle creates a shortage of Police Patrol vehicles and increases utilization of the active Patrol fleet. The shortage of Patrol vehicles could hinder patrol and incident response and the incre ased utilization will increase maintenance and repairs on the active units. Attachments: a - Perry Ford-2018 Ford Utility-2322 b - Perry Ford-2018 Ford Utility-2324 c - Perry Ford-2018 Ford Utility-2327 d - GRIP 3.0 Brochure e - Disposing of Surplus Units - Section 405-L Procedures f - Surplus Personal and Unclaimed Property Policy - Section 480-A g - Auction Firm Services - Section 480-B Packet Pg. 184 Item 16 Packet Pg. 185 Item 16 Packet Pg. 186 Item 16 Packet Pg. 187 Item 16 Packet Pg. 188 Item 16 Packet Pg. 189 Item 16 Packet Pg. 190 Item 16 Packet Pg. 191 Item 16 Packet Pg. 192 Item 16 Packet Pg. 193 Item 16 Packet Pg. 194 Item 16 Packet Pg. 195 Item 16 Packet Pg. 196 Item 16 Packet Pg. 197 Item 16 Packet Pg. 198 Item 16 Applications Optimize Vehicle Utilization Reduce & Track Emissions Reduce & Track Fuel Reduce Operating Costs POLICING ROAD CONSTRUCTION MINING YARD TRUCK SCHOOL BUS & TRANSIT EMS UTILITIES HEAVY TRUCK WORK TRUCK 1404 Cormorant Road, Unit 6 Ancaster, ON L9G 4V5 Phone: 905-304-0400 Toll Free: 844-304-0400 Fax: 905-304-0466 info@gripidlemanagement.com www.gripidlemanagement.com Canadian Patent # 2,781,211 US Patent Pending 89141206 Packet Pg. 199 Item 16 REDUCEFuel Consumption Benefits to a Fleet Easy to Install and Configure Data for Utilization Customization Online Ordering & Support 5 Year Warranty Safety REDUCE GHG Emissions REDUCE Operating Costs and Maintenance Repair ADDITIONAL BENEFITSKEY FEATURES The GRIP system is designed to reduce unnecessary idle by automatically shutting the engine off, and going into monitoring mode. The system will automatically start the engine when required based on the setting. Automatic System: Operator feedback is not necessary for the GRIP system to function, allowing fleet to set parameters and thresholds based on the vehicle’s duty cycle. Support Tools: The GRIP system offers a variety of support materials in addition to our customer support hotline. 9 Steps: The 9 Steps to Success has been designed to guide a fleet through the process; from procurement to deployment of the GRIP system. EMAT: The Electronic Management Analysis Tool provides fleet managers with a tool to convert the vehicle metrics accumulated by the GRIP system into simple and easy to read charts to show the results that the GRIP system is achieving. Designed to be non-invasive with ease of installation in mind, the GRIP system incorporates a plug and play connection method with only one connection needing to be cut and connected into the ignition. The GRIP system works in conjunction with the vehicle’s CAN (Controller Area Network). The system receives real time data from the vehicle as well as from additional sensors added when the system is installed. By using our Data Analysis Tool, you can take that data and turn it into realized savings information and emissions reduction. You can use that data to determine what additional equipment or change in behavior is required to achieve better results. The GRIP system has many features and functions that can be used for nearly every application. All of these features and functions can be set up differently, for every vehicle, by using the GRIP Service Tool. Customer Portal: Customers can shop on-line using their unique login, by either entering a VIN (Vehicle Identification Number) or by simply browsing all products. On-line Manuals: Operator and Installation Manuals, as well as additional supplemental guides, are available on-line. Updates: Software updates (including new vehicle features) are available for download. The base product GRIP Kit carries a 5 Year Warranty. All Optional accessory parts carry a 2 Year Warranty. When the GRIP system is in operation and the engine shuts down, the system controls the key position back to the “RUN” position so that the airbags, windshield wipers, lights, sirens and climate control systems are still functioning. By reducing fuel consumption and engine hours, emissions are reduced. Based on the EPA and DOT, each gallon of gasoline consumed will produce 8.89 Kg of CO2 emissions. Since the engine operation is reduced by 30% to 70%. there is savings in the extension of service and maintenance intervals of the vehicle (moving parts and oil changes), extending the life expectancy of the vehicle. Packet Pg. 200 Item 16 405-17 Section 405-L: Procedures DISPOSING OF SURPLUS UNITS 1. When a unit is replaced or otherwise permanently removed from service, report to Accounting that it is surplus and available for sale. 2. Include in each such report the following information for each unit reported: City identification number (e.g., 9901) Vehicle identification number (VIN) License number Model year (e.g.,2005), make (e.g., Ford), and model (e.g., F-350) Description (e.g., one-ton truck) Assigned department (e.g., Public Works) Assigned program (e.g., Signal and Light Maintenance) Acquisition year (e.g., 2004-05) Estimated surplus value Basis of estimated surplus value (e.g., blue book, previous auction proceeds) Current odometer or hourmeter reading Justification for replacement Current location Authorization to surplus (e.g., budget document that authorized replacement or other Council authorization to replace or dispose of the unit) 3.Finance Division will dispose of surplus vehicles in accordance Section 480 of the Finance Management manual. ATTACHMENT 2 Packet Pg. 201 Item 16 480-10 Section 480-B AUCTION FIRM SERVICES OVERVIEW To reduce staff time in the sale and disposal of property, to reduce the amount of space being used to store surplus and unclaimed property, to improve the process of estimating the value of surplus property, and to maximize the value of return on surplus property, the Department of Finance & IT is authorized to contract with an auction firm to assist staff in the sale and disposal of personal property, consumable supplies and unclaimed property on an "as available basis" after authorization is given by the Council or the Director of Finance & IT to sell or dispose of City property. The policies and procedures provided below in conjunction with the City's auction firm will provide the staff with the opportunity to systematize the sale and disposal of this property. AUCTION FIRM RESPONSIBILITIES The following responsibilities will normally be assigned to the City's auction firm by Agreement between the City and the firm selected: A. The auction firm will be required to pickup any and all "marketable" surplus property by consignment and deliver this property to their premises where it shall be inventoried, sorted, identified, and catalogued. An auction will be conducted within 30 days of receipt of property and supplies. B. The auction firm will make the necessary arrangements for offering the property for sale by auction to the most qualified buyers to obtain the highest return possible. The auction firm will advertise the auction in a manner that will obtain the maximum participation by the public in at least one newspaper of general circulation in the City of San Luis Obispo for a minimum of five days prior to a scheduled auction. C. The property consigned to the auction firm will remain the property of the City until sold or disposed in accordance with these procedures. D. Property not sold at auction will be disposed by on of the following methods: 1. Consignment to a sub-contractor specializing in unique or special equipment and material for which there is no local market. 2. Direct sale to a buyer of unique or special equipment and material for which there is no local market. 3. By sale as salvage to a local dealer or any recycling firm. 4. By destruction at an appropriate landfill site and certification thereto. 5. Returned to the City. E. The material and equipment not sold at auction will be disposed of by one of the methods described above within 15 days from the date offered at auction. For the purpose of these ATTACHMENT 1 Packet Pg. 202 Item 16 Section 480-A SURPLUS PERSONAL AND UNCLAIMED PROPERTY POLICY OVERVIEW This policy addresses the procedures for the disposal of surplus personal property, unclaimed property, consumable supplies, and junk. The policies and procedures for the disposal or sale of surplus real property, abandoned property and resale inventory are provided in other policy documents. In preparing this policy, not all issues or exceptions could be anticipated. Accordingly, the guidance given in this policy does not relieve Staff from exercising good judgment in their stewardship of the City's property resources. Whenever there is a question or doubt between the guidance provided in this policy and the good judgment expected of a prudent person, good judgment should always be the prevailing standard, with this policy as a minimum standard. LEGISLATIVE POLICY A. Surplus Property Section 906 of the City Charter provides that the Council must approve the sale of surplus property (real or personal) with an estimated value greater than $1,000. B. Unclaimed Property 1. Chapter 3.32 of the City Municipal Code provides for the disposal of unclaimed property by the Chief of Police. This property must be held for a minimum of four months and notice of sale must be given at least five days prior to sale by publication in a newspaper of general circulation. Property not sold may be destroyed by the Police Department after public auction. 2. Sections 2080.4 and 2080.6 of the Civil Code requires any person finding property valued at $10.00 or more to turn the property over to the Police Department within a reasonable time, stating when and where the property was found and providing a description of the property. If the property was saved, a statement is required from the "finder" describing: a.From what and how it was saved. b. Whether the owner of the property is known to the "finder". c.That the property has not been secreted, withheld, or partially disposed. 480-1 ATTACHMENT 3 Packet Pg. 203 Item 16 Surplus Personal and Unclaimed Property Policy ADMINISTRATIVE POLICY A. The Director of Finance & Information Technology (IT) is authorized to declare as surplus those items of personal property and consumable supplies estimated to be less than $1,000 in value; Council approval is required to declare personal and consumable supplies as surplus with a value of $1,000. B. Department Heads are authorized to approve the disposal of property that is essentially without value due to technical obsolescence or its unrepairable (or economically unrepairable) condition. Department Heads may dispose of such junk property in the manner they deem most appropriate, consistent with other rules, regulations, and the City's ethics policy. C. Generally, estimating the value of surplus property is made by the Department Head or designated representative. In unique and unusual cases, Finance will assist Departments in estimating the value of property by using the City's auction firm to provide a professional estimate. However, in all cases, the Department Head must approve in writing the estimated value of the property to be sold or otherwise disposed. D. The Director of Finance & IT is authorized to sell, transfer, trade, or otherwise dispose of surplus personal property, consumable supplies, or unclaimed property in the most cost effective manner. Normally the sale of this property will be at auction with a firm contracted to provide the following services: 1. Sell and dispose of personal property, consumable supplies and unclaimed property at auction. 2. Provide professional estimates as to the value of personal property and consumable supplies when required. 3. Assist in the sale of unique or special property and consumable supplies that requires the use of a "specialty house" to sell or dispose of the property. 4. Dispose of unsaleable property, supplies and equipment at an approved disposal site. E. The Director of Finance & IT may dispose of surplus property and supplies by transfer to another local government agency or non-profit organization based on the recommendation of a Department Head. Although there may be circumstances where it is appropriate to make such transfer without compensation, cash or in-kind services should generally be received in an amount equal to or greater than the estimated value provided by the City's auction firm or the Department Head. In the case of vehicles, "low blue book value" may also be considered. F. When it is a normal business practice, trade value should be obtained to determine the most cost effective method of disposal and as a standard by which to evaluate the services of the City's auction firm. There may be circumstances when trade value of 480-2 ATTACHMENT 2 Packet Pg. 204 Item 16 Surplus Personal and Unclaimed Property Policy property may exceed auction value, in which case the Director of Finance & IT may authorize the trade of surplus property versus sale at auction based on the recommendation of the appropriate Department head. G. Advertising the sale of the City's property and unclaimed property will be made by the City's auction firm in accordance with these procedures, the Auction Services Agreement, and legislative policy. Accordingly, the advertising must disclose that the property for sale at auction is either the surplus property of the City of San Luis Obispo or is unclaimed property in the possession of the City and it must state the date and time of sale. Property sold at auction will be advertised at least five days in a newspaper of general circulation in the City of San Luis Obispo. H. Property determined to be unclaimed by the Chief of Police may be sold at public auction in accordance with these policies and procedures under the following conditions: 1. It is a thing which is commonly the subject of sale. 2. The owner cannot (with reasonable diligence) be found. 3. The owner, if identified, refuses to pay the reasonable charges incurred by the City for storing and safeguarding of the property. PROCEDURES A. Surplus Personal Property and Consumable Supplies 1. Department Heads will identify personal property and supplies that are surplus to their needs and notify the Director of Finance & IT by Memorandum to sell or dispose of property identified, in accordance with City policy and procedures. The property to be declared surplus will be listed and include the City Asset Number (if applicable), a descriptive name of the property, quantity, pickup location, estimated value, and name of the contract person with their extension number. Separate memorandums must be prepared for property estimated to exceed $1,000 in value and for property estimated to be less than $1,000 in value. The memorandum (or listing) must indicate why the property is no longer required. 2. Department Heads may request that Finance assist them in estimating the value of personal property and consumable supplies. In such instances, Finance may request the services of the City's auction firm in estimating these values. However, these services are limited and should not be used except for unique and unusual property. 3. Special handling will be required for the disposal of toxic and hazardous materials, and should be coordinated with the City's Fire Department. 480-3 ATTACHMENT 2 Packet Pg. 205 Item 16 Surplus Personal and Unclaimed Property Policy I. After receipt of a request to dispose of personal property and consumable supplies from a Department Head, Finance will circulate the list of property to other City Departments as an advisory memorandum. The property listed may be claimed by other Departments on a first come first serve basis. After 10 days from the date of the advisory memorandum, this listing will be forwarded to the Housing Authority, San Luis Coastal Unified School District, and United Way for their information. If none of these agencies expresses interest in the remaining property items within 10 days of receiving the listing, then the property will be consigned to the City's auction firm for sale or other method of disposal as determined by the Director of Finance & IT. Except in unusual circumstances, surplus property will generally remain on site pending its final disposition. This means that it is the responsibility of the interested party to make arrangements with the disposing department to view the property, discuss its condition, and coordinate any terms of transfer such as price, timing, and transportation. J. For property with a value of $1,000 or more, the Director of Finance & IT will prepare an Agenda Report for Council approval to declare the property as surplus after review by the operating departments as described above and prior to the consignment of property to the City's auction firm. B. Evidence The provisions of this policy do not address the disposal of property which is classified as evidence. Evidence is governed by the provisions of the penal code and must be dealt with accordingly. For example, evidence may be returned to the owner, subjected to lien, or classed as contraband and accordingly destroyed. However, evidence may also be determined by the Chief of Police to be unclaimed property and, in that event, will be processed in accordance with the policies and procedures provided below. C. Unclaimed Property Unclaimed property received by the City will be processed as follows: 1. The Police Department is required to receive, hold, and safekeep all property valued at more than $10 that is found within the City limits and turned in to the Police Department for safekeeping. The owner will be notified as to where the property may be claimed if the owner's identity can reasonably be determined. 2. If the owner appears within 120 days after receipt of the property by the Police Department, proves ownership, and pays all reasonable charges, the Police Department will return the property to the owner. 3. If the reported value of the property is fifty dollars or more (and no owner appears and proves ownership within 120 days), the Police Department will publish a notice, at least once, in a newspaper of general circulation. After seven days following the first published notice the following actions will be taken if no owner appears and proves ownership of the property; 480-4 ATTACHMENT 2 Packet Pg. 206 Item 16 Surplus Personal and Unclaimed Property Policy G. If the property was found in the course of employment by a City employee, the property shall be sold at public auction. H. The title shall vest in the person who found the property if he or she is willing to pay the cost of the publication. I. If the reported value of the property is less than $50 and no owner appears and proves ownership of the property within 120 days, the title shall vest in the person who found the property, unless the property was found in the course of employment by a City employee, in which case the property shall be sold at public auction. J. Generally, the sale of unclaimed property will be made by the City's auction firm; however, in unique circumstances, the Chief of Police may request that Police Department staff conduct the auction. When the City's auction firm is used, the firm must be notified in writing with a list of property to be sold. This list does not require a statement of estimated values. The letter will give the name of the contact person and extension number, a short title property description, a pickup location, and a pickup time. K. Prior to sale, a listing of unclaimed property shall be provided to the Director of Finance & IT, who will circulate this list as an advisory memorandum to other City Departments. The property listed may be claimed by other Departments on a first come first serve basis. After a 15 day period from the date of the advisory memorandum, the unclaimed property will be available for sale at public auction according to policy. L. The unclaimed property to be sold by the City's auction firm will be transferred on consignment in accordance with the surplus property policies. M. Any property remaining unsold after being offered at public auction may be destroyed or otherwise disposed of by the City's auction firm. Approved by the City Manager on March 1, 1990; revised on January 14, 1994. 480-5 ATTACHMENT 2 Packet Pg. 207 Item 16 Section 480-B AUCTION FIRM SERVICES OVERVIEW To reduce staff time in the sale and disposal of property, to reduce the amount of space being used to store surplus and unclaimed property, to improve the process of estimating the value of surplus property, and to maximize the value of return on surplus property, the Department of Finance & IT is authorized to contract with an auction firm to assist staff in the sale and disposal of personal property, consumable supplies and unclaimed property on an "as available basis" after authorization is given by the Council or the Director of Finance & IT to sell or dispose of City property. The policies and procedures provided below in conjunction with the City's auction firm will provide the staff with the opportunity to systematize the sale and disposal of this property. AUCTION FIRM RESPONSIBILITIES The following responsibilities will normally be assigned to the City's auction firm by Agreement between the City and the firm selected: A.The auction firm will be required to pickup any and all "marketable" surplus property by consignment and deliver this property to their premises where it shall be inventoried, sorted, identified, and catalogued. An auction will be conducted within 30 days of receipt of property and supplies. B.The auction firm will make the necessary arrangements for offering the property for sale by auction to the most qualified buyers to obtain the highest return possible. The auction firm will advertise the auction in a manner that will obtain the maximum participation by the public in at least one newspaper of general circulation in the City of San Luis Obispo for a minimum of five days prior to a scheduled auction. C.The property consigned to the auction firm will remain the property of the City until sold or disposed in accordance with these procedures. D.Property not sold at auction will be disposed by on of the following methods: 1. Consignment to a sub-contractor specializing in unique or special equipment and material for which there is no local market. 2. Direct sale to a buyer of unique or special equipment and material for which there is no local market. 3. By sale as salvage to a local dealer or any recycling firm. 4. By destruction at an appropriate landfill site and certification thereto. 5. Returned to the City. E.The material and equipment not sold at auction will be disposed of by one of the methods described above within 15 days from the date offered at auction. For the purpose of these 480-10 Auction Firm Services ATTACHMENT 4 Packet Pg. 208 Item 16 instructions, the City will give approval as to the disposal method based on the recommendation of the auction firm and the method that is in the best interests of the City. F. The auction firm will provide the Department of Finance & IT with a list of consigned property with a check for the net proceeds from the auction or specialty sale within 60 days of receipt of consigned material and equipment providing the following information: 1. City Asset number (if available) 2. Short title description of the property 3. Date of sale or disposal 4. Purchaser or the disposal site 5. Total purchase price 6. Auction fee 7. Net to City 8. Method of disposal (sale at auction, transfer to a specialty house for sale, direct sale as salvage, transfer to an appropriate landfill or disposal site, return to City) 480-11 ATTACHMENT 3 Packet Pg. 209 Item 16 Page intentionally left blank. Packet Pg. 210 Item 16 Meeting Date: 6/5/2018 FROM: Carrie Mattingly, Utilities Director Prepared By: Brigitte Elke, Interim Finance Director SUBJECT: UTILITY BILLING DEPOSITS RECOMMENDATION It is recommended that the City Council adopt a Resolution that a mends Resolution 7080 (1992 Series) by: 1. Eliminating deposit requirements for non-payment; 2. Establish a deposit amount when a social security number is not provided; and 3. Allow for increases to the deposit amount with the change in water and sewer rate s. DISCUSSION In 1992, the City Council esta blished a refundable deposit requirement for all accounts disconnected from service due to non-payment of outstanding invoices (Attachment B). The fees were adopted without an inflator and are still $90.00 for all residential accounts and vary for all other customer classes by meter size. Per resolution (Attachment A), the deposit is reimbursed when an account remains current and in good standing for at least one year. In September 2015, the Utility Billing function moved from the Finance Department to t he Utilities Department. This offered an opportunity to review current practices, policies, and analyze procedures which included utility account deposits. The current deposit policy was found ineffective as it no longer covers the average debt, is cumbersome and time consuming to administer, and adds an additional financial burden on people already in arrears with the bill. What has changed Prior to contract meter reading, utility invoices arrived at different dates from month-to-month. Now the due date falls on the 15th of each month. This allows customers to better plan for the expenditure. The implementation of online and phone payment options allows customers to pay their bill 24/7 and leaves them less dependent on City business hours. Shut -off numbers have therefore gradually dropped over the past two years from 870 to 246 in the first six months of 2017-18. However, a customer already pays $110.00 in reconnection fees in addition to the owed amount. With the deposit an additional $200 become due before water service can be restored. Collection of Debt The new streamlined processes for shut -off for non-payment and the improved final bill process keep accounts current and a customer aware of a final invoice after termination of service. Additionally, staff implemented a phone tree alert to all account holders who have an open invoice pending for collection. This process decreased the cases being transferred to the collection agency by 30%. Packet Pg. 211 Item 17 Account Security Deposit In order to open a utility account, customers have to provide their social security number as the unique identifier of the account holder. The City currently allows a customer to pay a deposit to avoid providing this information. Staff recommends that the deposit collected for this purpo se remain, be non-refundable until the account closes, and should at least secure the average collection amount of $300. Since the average monthly utility bill changes with rate adjustments, it is recommended to increase the deposit amount with the annual changes in water and sewer rates as notified under Proposition 218. FISCAL IMPACT In 2016-17, the Utilities Department referred $61,402 in outstanding payments to collections. This represents 0.18% of the $33.4 million in rate revenue collected for the Water and Sewer Fund. The amount sent to collection for accounts with deposit was $4,518 of which $990.00 was secured with the deposit. Nine of those deposits were collected through the shut -off process, two in lieu of a social security number. ALTERNATIVE 1. Keep the current resolution. This is not recommended as the deposit does not cover the debt it was supposed to secure. 2. Continue to collect a deposit for non-payment and increase the amount to $300. This is not recommended as it places a large burden o n people who already struggle to pay the bill to restore water service. Attachments: a - Resolution 7080 (1992 series) b - Amended Deposit Resolution Packet Pg. 212 Item 17 Packet Pg. 213 Item 17 Packet Pg. 214 Item 17 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA RESCINDING AND REPLACING RESOLUTION NO. 7080 (1992 Series) TO ESTABLISH A RECONNECTION FEE AND REFUNDABLE DEPOSIT REQUIREMENTS. WHEREAS, Section 13.04.030 of the City of San Luis Obispo Municipal Code provides that a deposit may be required prior to initiating water service and allows such a deposit to be established by resolution; and WHEREAS, in 1992, Resolution No. 7080 established a refundable deposit for all accounts for which water has been disconnected for non-payment; and WHEREAS, in 1993, by memorandum, the Finance Director, as permitted by Ordinance No. 1204, declared that if customers decline to provide their social security number when signing up for City utility service, they are required to pay a deposit prior to the start of service; and WHEREAS, current deposit levels are ineffective and insufficient in securing owed balances. In the case of termination of service due to non-payment, they add additional hardship to those already struggling to pay their utilities bill; and WHEREAS, current processes for collection of unpaid balances on closed accounts through the City’s collection agency depend on a social security number for successfully identifying the debtor. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows/or that (whatever action is needed): SECTION 1. No deposit will be collected for non-payment of a balance on an active account. SECTION 2. A deposit will be collected for service request when the customer declines to provide his social security number. This deposit amount is set at $300 and will be included in the City’s master fee schedule and increased annually by the applicable inflator according to the master fee schedule process. Packet Pg. 215 Item 17 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 3. Resolution No. 7080 (1992 Series) is hereby repealed 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 Packet Pg. 216 Item 17 Meeting Date: 6/5/2018 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Teresa Purrington, City Clerk Heather Goodwin, Deputy City Clerk SUBJECT: ADOPT A RESOLUTION AMENDING THE EXISTING PLEDGE TO FOLLOW BEST PRACTICES OF CIVILITY AND CIVIL DISCOURSE RECOMMENDATION Adopt a Resolution amending Resolution 10668 (2015 Series) to modify the best practices of civility and civil discourse in public meetings. DISCUSSION At the May 15, 2018 City Council meeting, Council directed staff to agendize an update to the Co de of Civility. The Code of Civility was originally adopted o n September 15, 2015 and pledged to follow best practices of civility and civil discourse in public meetings. The purpose of the amendments is to highlight the role and importance of civility in democratic processes and empower the collective voices of the County Board Chair and Mayors, and Chambers of Commerce throughout the County on key community challenge s. Civil discourse has the ability to broaden public conversation and awareness and inspire more engagement on community issues. If adopted, it is the intention that the Mayors and the County Board Chair be co -champions in also adopting a Code of Civility. Mayors and the County Board Chair are committed to sign and share the Code of Civility broadly with at a signing ceremony supported by SLOChex (San Luis Obispo Chamber Executives) and a coordinated media campaign. An amended version of Resolution 10668 (2015 Series) with the proposed civility guidelines incorporated as Exhibit A are provided in Attachments A & B. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines sec. 15378. Packet Pg. 217 Item 18 FISCAL IMPACT There are no fiscal impacts associated with adopting the proposed resolution. Attachments: a - Resolution - Civility and Civil Discourse b - Exhibit A - Code of Civility Packet Pg. 218 Item 18 R ______ RESOLUTION NO._________ (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE EXISTING PLEDGE TO FOLLOW BEST PRACTICES OF CIVILITY AND CIVIL DISCOURSE IN ALL OF ITS MEETINGS WHEREAS, the City Council commits itself to building a civil political community in which each person is respected and spirited public and political debate is aimed at the betterment of the City of San Luis Obispo and its people and not the disparagement of those with whom we disagree; and WHEREAS, the City Council pledges to promote the use of and adherence to the principles of civility and civil discourse in conducting business with appointed and elected officials, staff, and citizens. WHEREAS, the City Council desires to reaffirm the importance of civility and civil discourse in the democratic process and incorporating by reference Exhibit A. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Luis Obispo, in order to ensure civility and civil discourse in all of our meetings, we pledge our commitment to the following best practices of civility and civil discourse: A. To respect the right of all people to hold different opinions in all our meetings. B. To avoid rhetoric intended to humiliate, malign, or question the motivation of those whose opinions are different from ours in all our meetings. C. To strive to understand differing perspectives in all our meetings; D. To choose words carefully in all our meetings. E. To speak truthfully without accusation and avoid distortion in all our meetings. F. To speak out against violence, prejudice, and incivility in all their forms whenever and wherever they occur in all our meetings. SECTION 1. Resolution Number 10668 (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. Packet Pg. 219 Item 18 Resolution No. _____ (2018 Series) Page 2 R ______ ____________________________________ 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 Packet Pg. 220 Item 18 CODE OF CIVILITY A healthy democracy respects the people’s right to debate issues with passion. A healthy democracy not only tolerates disagreement but welcomes it in order to refine ideas and create policies that benefit the greater good. The deterioration of civility across the country and within our community poses a threat to our democracy and our civic well-being. This deterioration: ● Compromises the integrity of a healthy, representative democracy ● Closes the door on depth of thought, reducing complex problems to harmful oversimplification ● Deters potential leaders from running for office or serving in government ● Poisons the civic well and discourages citizens from engaging on pressing community issues ● Casts the spotlight on poor behavior rather than shining a light on possible solutions ● Sets a poor example for our children As elected leaders throughout the region we are accountable to each other, the press and the public. We have crafted this Code of Civility as a promise to each other, and to the people and institutions we serve, that we will always strive to conduct our debates - whether in person, online, or in written communication - in ways that allow for the widest range of opinions on ideas and policies, yet also respect the dignity, integrity and rights of those with whom we might disagree. Therefore, in our deliberations, we pledge to: Listen First We will make an honest effort to understand views and reasoning of others by listening to understand, not listening to find fault, allowing thoughtful discussion to lead to the best possible outcomes. Respect Different Opinions We will invite and consider different perspectives, allowing space for ideas to be expressed, opposed and clarified in a constructive manner. Show Courtesy We will treat all colleagues, staff and members of the public in a professional and courteous manner whether in person, online, or in written communication, especially when we disagree. Criticize Constructively We strive to advance solutions to community issues; when faced with disagreement, we do more than simply share our concerns with differing positions, we work to propose a course of action of mutual benefit. Debate the Policy Not the Person We will focus on the issues, and not personalize debate or use other tactics that divert attention from the issue. Packet Pg. 221 Item 18 Page intentionally left blank. Packet Pg. 222 Item 18 Meet ing Date: 6/5/2018 FROM: Derek Johnson, City Manager Prepared By: Shelly Stanwyck, Parks and Recreation Director Brigitte Elke, Interim Finance Director Alex Ferreira, Budget Manager SUBJECT: REVIEW AND DISCUSSION OF PROPOSED 2018-19 SUPPLEMENTAL BUDGET RECOMMENDATION Receive and discuss the 2018-19 Budget Supplement including: a. Major City Goals/Other Important Objectives and Performance Measures progress report; and b. The 5-year General Fund Forecast; and c. The proposed changes to the 2018-19 Budget Supplement arising from the implementation of the Adopted Fiscal Health Response Plan (FHRP); and d. The proposed changes to the 2018-19 Capital Improvement Program; and e. The Enterprise Funds Overviews and implementation of the FHRP to the Parking, Sewer, Transit, and Water Enterprise Funds. DISCUSSION The Budget Supplement for 2018-19 implements the Council adopted Fiscal Health Response Plan and contains the following 12 sections. The Budget Overview 2018-19 This section of the Budget Supplement is the narrative summary of the topics covered by the document. It provides highlights for the major sections of the Supplement. Below is a summary of the basic outline of the Budget Overview 2018-19. Packet Pg. 223 Item 19 Budget Outline 1. City Manager Message 2. April 17, 2018 Adoption of Fiscal Health Response Plan 3. Highlights of Status on Major City Goals/Other Important Objectives and Performance Measures 4. Overall Economic Outlook 5. 5-Year Fiscal Forecast for General Fund Including Projected Revenues and Expenditures 6. Application of the adopted Fiscal Health Response Plan to the General Fund and Changes to the 2018-19 Budget 7. Status Report on Revenue Oversight Committee (REOC) Operating Programs and Capital Projects 8. Capital Improvement Projects 9. Enterprise Funds Forecasts and Reports Major City Goals and Other Important Objectives Every two years with the adoption of the City’s Financial Plan the most important, highest priority work programs are established, with resources to accomplish them, as Major City Goals and Other Important Objectives. The 2017-19 Major City Goals are focused on the following: Housing, Multi-Modal Transportation, Climate Action, and Fiscal Sustainability and Responsibility. At this phase of the Financial Plan, a majority of the Major City Goals and Other Important Objectives are tracking at about half way to completion. Section B of the 2018 -19 Budget Supplement provides details for each Goal and Other Important Objective and includes the status of tasks assigned to each with notes on accomplishments, progress, as well as modifications to tasks. 5 Year General Fund Forecast As part of the 5-year Fiscal Forecast Discussion three policy changes are recommended regarding fund balances and reserves and long term financial planning. Council’s action of June 19th will consider adoption of these policies. Packet Pg. 224 Item 19 The 5-year Fiscal Forecast is based on assumptions shown in Section D that the City will be able to maintain a balanced budget and meet its unfunded pension liabilities and appropriate approximately $20 million dollars towards payments of unfunded CalPERS pension liabilities. The forecast largely shows that the City will be able to make modest adjustments in expenditures based on revenue forecasts and that significant expansion of operating programs or capital investments wo uld require operational tradeoffs. The bottom line is that, in order to fund the City’s unfunded pension obligations, fiscal restraint will be required for the foreseeable future. Application of Fiscal Health Response Plan This Financial Plan process is slightly different due to changes in the City’s 10-year Financial Forecast associated with changes to unfunded liabilities associated with the City’s pensions. As a result, since summer of 2017, the Council and public have studied this problem and identif ied a framework in which to address it over the next three years. On April 17, 2017, the City Council adopted a Fiscal Health Response plan to guide the 2018 -19 Budget as well as the 2019-21 Financial Plan. Each City department has applied the polices and guiding principles of the Fiscal Health Response Plan to their operating program budgets for 2018 -19. As a result, predominately reductions achieve a balanced budget for 2018-19. The options proposed are those with the least amount of service level impa cts and are those that are achievable in 2018-19. The following summarizes the proposed operating budget reductions and other changes which implement the Fiscal Health Response Plan and are contained in the Budget Supplement. Capital Improvement Projects Several revisions to the 2018-19 CIP are proposed. They include appropriations for three new projects using grants or previously identified funds. In addition, there are recommended reductions to existing projects whose construction can be deferred in 2018-19. These reductions are recommended to fund a project ready to construct this summer, the Laurel Lane Complete Streets project. The project discussed below is done so for ease of public review with this agenda report, the same information in contained in the Budget Supplement in multiple locations as well. Park in the North Broad Street Neighborhood This topic is discussed in the Budget Overview and is recommended for incorporation into the City’s capital improvement program. It is discussed in th is transmittal report in summary form as not all members of the public will choose to review the Budget Supplement. However, the Supplement covers this topic as well. Packet Pg. 225 Item 19 a. Current Council Direction. In 2016, Council allocated $900,000 of General Fund to the P arkland Fund for the purposes of developing a Park in the North Broad Street Neighborhood. On June 1, 2017, Council provided direction to transfer $160,000 of that allocation from the from the Parkland Development Fund to a fund the Parks and Recreation Master Plan and Element update during the 2017-19 Financial Plan. Staff was directed to pursue a park site in this neighborhood that facilitates a Park and the Broad Street Bike Boulevard. The remaining $740,000 General Fund contribution designated in the Parkland Fund for the Park in this neighborhood was to be reevaluated at the 2019 -21 Financial Plan if no active pursuit of property was underway. During 2017-18, staff from Public Works, Parks and Recreation and the City Attorney initially met with the Church of the Latter Day Saints to discuss the possible use of property it owns that is bounded by Foothill Boulevard and Ramona Drive for the multiple purpose of a Park and a Bike Path. The good news is, an agreement was reached for use of that property for Bike Path purposes with the Church. The disappointing news is no agreement could be reached for Park purposes. Although the circumstances surrounding a potential Park changed, consistent with the current Parks and Recreation Element, (which identifies the need for a Park in the North Broad Street Neighborhood), staff continued to evaluate how and where this could occur given the Ramona/Foothill Drives location was no longer feasible. Parks and Recreation staff facilitated a series of meetings with a group of residents of the North Broad Street Neighborhood. Staff reviewed all properties in the neighborhood that might be available and viable for park purposes. Using the Goldilocks analogy some were too steep, some were too constrained, some were under residential development, and some were just not right. Eventually staff and the residents were able to identify that property the City owns, at 533 Broad Street, Broad Street Community Gardens, could be just right for a Park in this neighborhood. b. Council Direction Sought with 2018-19 Supplement – a new CIP Project It is therefore proposed that Council provide direction to staff to establish a capital improvement project to begin the design and development of a Park in the North Broad Street neighborhood at the City owned property at 533 Broad with the $740,000 General Fund designation in the Parkland Fund to be appropriated for this purpose. Included in this direction, if supported by Council, would be a programmatic work effort by staff, to use the City’s public engagement process to engage the neighborhood about this Park, seek its input in the design, and have the Parks and Recreation Commission continue to serve in its capacity as the advisory body to the Council on this new park. Given staff in Parks and Recreation’s thoughtful reorganization, and focus on other work efforts, this project will not begin until spring 2019. Packet Pg. 226 Item 19 Enterprise Funds For ease of review, the Budget Supplement includes the Fund Reviews for each of the Enterprise Funds: Parking, Sewer, Transit, and Water. Those four Fund Reviews include overviews of each Fund, the Funds’ responses and strategies to apply the Fiscal Health Response Plan, and any Capital Improvement Projects planned. Rate adoptions for the Water and Sewer Funds will be considered by Council on June 19th. ENVIRONMENTAL IMPACT There is no environmental impact associated with the adoption of the 2018 -19 Budget Supplement. Notably, components of the Budget and savings proposed in it are focused on increased sustaina bility and the use of less consumable goods in an ongoing effort by the City to address long-term environmental concerns. Nothing in the Budget Supplement is intended to constitute a final approval of any particular project for purposes of the California Environmental Quality Act and no action herein shall be construed to relieve the City of otherwise applicable environmental review obligations prior to any particular project approval. FISCAL IMPACT Fiscal impact of the proposed 2018-19 Budget Supplement is a balanced budget that sets forth the series of budgetary changes over the next three years to align revenues and expenditures to address increased costs associated with unfunded pension liabilities. NEXT STEPS Following Council discussion and direct ion at a public hearing of June 5, 2018, staff will return on June 19, 2018 for consideration of the Water and Sewer Funds rate adoptions, the amendments to Fiscal Policies regarding a revenue stabilization fund, a capital projects reserve, and the allocat ions of funds to prepay or participate in a trust to address portions of the CalPERS unfunded liability; the adoption of the appropriations limit for 2018 -19, the adoption of the 2018- 19 Budget. ATTACHMENT a - 2018-19 Budget Supplement Packet Pg. 227 Item 19