Loading...
HomeMy WebLinkAbout10-16-2018 Agenda PacketTuesday, October 16, 2018 5:30 PM SPECIAL MEETING Council Hearing Room 990 Palm Street San Luis Obispo Page 1 CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn Christianson and Mayor Heidi Harmon PUBLIC COMMENT ON CLOSED SESSION ITEM CLOSED SESSION A.THREAT TO PUBLIC SERVICES OR FACILITIES Pursuant to Government Code § 54957(a) Consultation with: San Luis Obispo Police Department, Police Chief and Police Captain ADJOURNED TO THE REGULAR MEETING OF TUESDAY, OCTOBER 16, 2018 AT 6:00 P.M. IN THE COUNCIL CHAMBER. Tuesday, October 16, 2018 6:00 PM REGULAR MEETING Council Chamber 990 Palm Street San Luis Obispo Page 2 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 1. INTRODUCTION - DOWNTOWN SLO, CEO (ROSALES – 5 MINUTES) Charlene Rosales, Economic Development Manager, will introduce the new Downtown SLO, CEO, Bettina Swigger. 2. INTRODUCTION - NEW CITY FINANCE DIRECTOR (JOHNSON – 5 MINUTES) Derek Johnson, City Manager, will introduce the new City Finance Director, B rigitte Elke. 3. PROCLAMATION - CHIEF OLSON (JOHNSON – 5 MINUTES) 4. PROCLAMATION - ARBOR DAY (HARMON – 5 MINUTES) 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 posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items. San Luis Obispo City Co uncil Agenda October 16, 2018 Page 3 CONSENT AGENDA Matters appearing on the Consent Calendar are expected to be non-controversial and will be acted upon at one time. A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the Consent Agenda within the three minute time limit. 5.WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation: Waive reading of all resolutions and ordinances as appropriate. 6.REVIEW MINUTES OF THE OCTOBER 2, 2018 CITY COUNCIL MEETING (PURRINGTON) Recommendation: Approve the minutes of the City Council meeting held on October 2, 2018. 7.ADOPTION OF AN ORDINANCE AMENDING THE VEHICLES AND TRAFFIC SECTION OF THE MUNICIPAL CODE; UPDATING COMMERCIAL LOADING ZONE USE, ESTABLISHING BUSINESS LICENSE REQUIREMENTS, AND UPDATING VEHICLE TOW PROVISIONS (GRIGSBY / FUCHS) Recommendation: Adopt Ordinance No. 1655 (2018 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Municipal Code Title 10 Regarding Vehicles and Traffic.” 8.CALLE JOAQUIN AGRICULTURAL RESERVE – LEASE AMENDMENT NO. 2 (JOHNSON / HILL) Recommendation: Approve Lease Amendment No. 2 with Central Coast Grown for the City of San Luis Obispo’s Calle Joaquin Agricultural Reserve in order to allow for an on-site caretaker on the property. San Luis Obispo City Co uncil Agenda October 16, 2018 Page 4 9. AUTHORIZATION TO SUBMIT PG&E ON-BILL FINANCING LOAN AGREEMENTS IN SUPPORT OF ENERGY EFFICIENCY LIGHTING RETROFITS (HILL / READ) Recommendation: 1. Authorize staff to negotiate PG&E On-Bill Financing Loan Agreements; and 2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, making findings on energy savings and determining other matters in connection with energy efficiency retrofits;” and 3. Authorize the City Manager to submit On-Bill Finance Loan Agreements and documents related to the Loan Agreements to PG&E. 10. CLIMATE CHANGE GRANT APPLICATION (HILL / READ) Recommendation: Authorize staff to submit an application, in coordination with the Local Government Commission, for the Caltrans SB1 Adaptation Planning Grant in the amount of approximately $700,000. 11. RAILROAD DISTRICT BOARDWALK REPLACEMENT SPECIFICATION NO. 91615 (GRIGSBY / GUZMAN) Recommendation: 1. Approve the plans and specifications for the Railroad District Boardwalk Replacement Specification No. 91615; 2. Authorize staff to advertise for bids; 3. Authorize the City Manager to award the contract if the lowest responsible bid is within the Engineer’s Estimate of $331,000; and 4. Appropriate $350,000 from the City’s SB-1: Road Repair and Accountability Act 2018- 19 Fiscal Year Funding 12. APPROPRIATE GRANT FUNDS FOR MARSH STREET BRIDGE REPLACEMENT PROJECT (GRIGSBY / NELSON) Recommendation: Appropriate an additional $1,406,160 in grant funding for the Marsh Street Bridge Project, for a total grant funding to match the federal funded a llocation of $6,946,943. San Luis Obispo City Co uncil Agenda October 16, 2018 Page 5 PUBLIC HEARING AND BUSINESS ITEMS 13. PUBLIC HEARING - CONDUIT FINANCING FOR THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE ACQUISITION AND REHABILITATION OF 172 AFFORDABLE HOUSING UNITS LOCATED IN THE CITY (CODRON / VERESCHAGIN – 15 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the incurring of a tax exempt obligation by the Housing Authority of the City of San Luis O bispo for the purpose of providing financing for the acquisition and rehabilitation of various multifamily rental housing facilities located in the city in order to preserve existing affordable housing.” 14. PUBLIC HEARING - IRISH HILLS NATURAL RESERVE CONSERVATION PLAN – WADDELL RANCH ADDITION (JOHNSON / HILL – 60 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition and adoption of a negative declaration.” 15. PUBLIC HEARING - ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT (HERMANN / CANO – 30 MINUTES) Recommendation: 1. Conduct a public hearing to receive testimony reg arding the City Council’s intention to continue the citywide Tourism Business Improvement District; and 2. Determine whether a legally sufficient protest is made; and 3. If no legally sufficient protest is made, adopt a Resolution entitled, “A Resolution o f the City Council of the City of San Luis Obispo, California, declaring the basis for and the levy of the assessment for the San Luis Obispo Tourism Business Improvement District, and affirming the establishment of The District.” San Luis Obispo City Co uncil Agenda October 16, 2018 Page 6 16. PUBLIC HEARING - UPDATE FOR THE ORCUTT AREA SPECIFIC PLAN PUBLIC FACILITIES FINANCING PLAN (CODRON / DOSTALEK / WATSON – 30 MINUTES) Recommendation: 1. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an update to the Orcutt Area Specific Plan – Public Facilities Financing Plan;” and 2. Authorize the Community Development Director to enter into Public Facilities Financing Plan Fee Credit Agreements with the Righetti Ranch L.P. developers and any other Orcutt Area Specific Plan developers. 17. ADJUSTMENTS TO THE COMPENSATION OF THE UNREPRESENTED CONFIDENTIAL EMPLOYEES (IRONS / SUTTER – 10 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, regarding compensation for the Unrepresented Confidential Employees and superseding previous resolutions in conflict,” having a three-year term (July 1, 2018 through June 30, 2021). 18. SUCCESSOR MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION (IRONS / SUTTER – 10 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting and ratifying the Memorandum of Agreement between the City of San Luis Obispo and the San Luis Obispo Police Officers’ Association for the period of July 1, 2018 to June 30, 2021.” 19. PARTY REGISTRATION PROGRAM (CANTRELL / WALLACE – 30 MINUTES) Recommendation: 1. Receive an update on t he party registration pilot program. 2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Voluntary Party Registration Program.” San Luis Obispo City Co uncil Agenda October 16, 2018 Page 7 20. CANNABIS OPERATOR PERMIT APPLICATION REQUIREMENTS, RANKING CRITERIA, AND ANNUAL APPLICATION SUBMITTAL PERIOD (CODRON – 30 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving cannabis operator permit ranking criteria and the annual application submittal period (CODE-1058-2017).” LIAISON REPORTS AND COMMUNICATIONS (Not to exceed 15 minutes) Council Members report on conferences or other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURNMENT The next Regular City Council Meeting scheduled for November 6, 2018 has been cancelled and rescheduled for November 13, 2018 at 4 p.m. and 6 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. Page intentionally left blank. San Luis Obispo Page 1 Tuesday, October 2, 2018 Regular Meeting of the City Council CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, October 2, 2018 at 5:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon. ROLL CALL Council Members Present: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn Christianson, and Mayor Heidi Harmon. Council Members Absent: None City Staff Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PUBLIC COMMENT ON CLOSED SESSION ITEMS None. ---End of Public Comment--- CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 Agency Negotiators: Monica Irons, Nickole Sutter, Rick Bolanos, Derek Johnson, Christine Dietrick Represented Employee Organizations: San Luis Obispo City Employee’s Association (SLOCEA) San Luis Obispo Police Officer’s Association (POA) San Luis Obispo Police Staff Officer’s Association (SLOPSOA) International Association of Firefighters Local 3523 Packet Page 9 Item 6 San Luis Obispo City Council Minutes of October 2, 2018 Page 2 Unrepresented Employees: Unrepresented Management Employees Unrepresented Confidential Employees RECESSED AT 5:45 P.M. TO THE REGULAR MEETING OF OCTOBER 2, 2018 TO BEGIN AT 6:00 PM IN THE COUNCIL CHAMBER Packet Page 10 Item 6 San Luis Obispo City Council Minutes of October 2, 2018 Page 3 CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, October 2, 2018 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon. ROLL CALL Council Members Present: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor Carlyn Christianson, and Mayor Heidi Harmon. Council Members Absent: None City Staff Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PLEDGE OF ALLEGIANCE Vice Mayor Carlyn Christianson led the Pledge of Allegiance. CITY ATTORNEY REPORT ON CLOSED SESSION City Attorney Dietrick stated that there was no reportable action for Closed Session. PRESENTATIONS 1. PROCLAMATION - INDIGENOUS PEOPLES DAY Mayor Harmon presented Proclamation to Northern Chumash Tribe of San Luis Obispo County and Region representatives, Mona Oliva Tucker and Lorie Laguna, and Wendy Lucas, Kinship Preservation Non-Profit Board of Directors representatives, proclaiming Monday October 8, 2018 Indigenous Peoples Day. 2. PROCLAMATION - FIRE PREVENTION WEEK Mayor Harmon presented Proclamation to Fire Chief Garret Olson and Fire Marshall Roger Maggio proclaiming October 7 – 13 as for Fire Prevention Week. 3. PROCLAMATION - NATIONAL SUICIDE PREVENTION WEEK Mayor Harmon presented Proclamation to Jeff Claxton and Lilli Young from the American Foundation for Suicide Prevention, proclaiming September 9 – 15, for National Suicide Prevention Week. Packet Page 11 Item 6 San Luis Obispo City Council Minutes of October 2, 2018 Page 4 PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Steven Omar Richard Kirenga Colt Estwein Sharon Whitney Jeffery Specht Don Hedrick Terry Mohan ---End of Public Comment--- CONSENT AGENDA ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER GOMEZ, CARRIED 5-0 to approve Consent Calendar Items 4 thru 8. Public Comment Don Hedrick – Item 6 Jeffery Specht – Item 7 4. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5 – 0 to waive reading of all resolutions and ordinances as appropriate. 5. REVIEW MINUTES OF THE AUGUST 28, 2018, AND SEPTEMBER 18, 2018, CITY COUNCIL MEETINGS CARRIED 5 – 0 to approve the minutes of the City Council meetings held on August 28, 2018 and September 18, 2018. 6. ADOPTION OF AN ORDINANCE TO AUTHORIZE THE IMPLEMENTATION OF A COMMUNITY CHOICE ENERGY PROGRAM CARRIED 5 – 0 to adopt Ordinance 1654 (2018 Series), entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, authorizing the implementation of a Community Choice Aggregation Program.” 7. REQUEST FOR QUALIFICATIONS FOR LEGAL SERVICES CARRIED 5 – 0 to: 1. Approve the Request for Qualifications (RFQ) for Legal Services. 2. Authorize the City Attorney to create a 2019-2024 On-Call List from the proposals received. 3. Authorize the City Attorney to execute agreements with the On-Call list of law firms and/or attorneys on an as-needed basis. Packet Page 12 Item 6 San Luis Obispo City Council Minutes of October 2, 2018 Page 5 8. IMPLEMENTATION OF THE 2018 ZONING REGULATIONS COMPREHENSIVE UPDATE (TITLE 17 OF CITY’S MUNICIPAL CODE) CARRIED 5 – 0 to adopt Resolution No. 10945(2018 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, implementing the 2018 Zoning Regulations comprehensive update (Zoning Regulations update, GENP-0327-2017),” to provide a clear understanding regarding which zoning regulations apply to various projects which are at different stages of the application and permitting process. PUBLIC HEARING ITEMS AND BUSINESS ITEMS 9. MENTAL HEALTH AND DRUG AND ALCOHOL SERVICES AND PROGRAMS Police Chief Deanna Cantrell and Anne Robin County Behavioral Health gave a presentation on the mental health and drug and alcohol services and programs the County provides. Public Comments: ---End of Public Comment--- ACTION: The Council received and filed the presentation. 10. 2017-18 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT Tourism Manager Molly Cano and TBID Chair Bruce Skidmore presented the staff report and responded to Council questions. Public Comments: ---End of Public Comment--- ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL MEMBER GOMEZ, CARRIED 5-0 to approve: 1. Receive and approve the (TBID) Board’s 2017-18 annual report; and 2. Adopt Resolution No. 10946 (2018 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, declaring its intention to continue the San Luis Obispo Tourism Business Improvement District, to continue the basis for and to levy the assessment for the district, and to set a date for the public hearing on the district and the assessment for 2018-19” at the same rate as in the fiscal year 2017-18. RECESS Council recessed at 8:00 p.m. and reconvened at 8:06 p.m., with all Council Members present. Packet Page 13 Item 6 San Luis Obispo City Council Minutes of October 2, 2018 Page 6 11. SCHEDULE FOR 2019-21 FINANCIAL PLAN Finance Director Brigitte Elke and Accounting Manager Alex Ferriera presented the staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- ACTION: By consensus the City Council approved the goal setting process and timetable for development of the 2019-21 Financial Plan and directed staff to look for alternatives for the Goal Setting Workshop in leu of the proposed Saturday workshop. 12. PUBLIC HEARING - AMEND THE MUNICIPAL CODE, TITLE 10 (VEHICLES AND TRAFFIC) Public Works Director Daryl Grigsby, Deputy Director Tim Bochum and Parking Services Supervisor Alex Fuchs presented the staff report and responded to Council questions. Public Comments: Don Hedrick Janine Rands ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER RIVOIRE, CARRIED 5-0 to Introduce an Ordinance 1655 (2018 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Municipal Code Title 10 regarding Vehicles and Traffic,” use requirements, update vehicle tow provisions, and other Title language clean-up. And directed Staff to remove changes to commercial loading and unloading zones after 6:00 p.m. additional consideration on the extended hours working with SLO Downtown on a solution that works. 13. PUBLIC HEARING - ESTABLISH FINE AMOUNTS FOR ELECTRIC VEHICLE CHARGING VIOLATIONS AND BICYCLE LANE VIOLATIONS, AND AN INCREASE OF EXISTING PARKING VIOLATION FINE AMOUNTS Public Works Director Grigsby, Deputy Director Tim Bochum and Parking Services Supervisor Alex Fuchs presented the staff report and responded to Council questions. Public Comments: Jeffery Specht Barry Rands Don Hedrick ---End of Public Comment--- Packet Page 14 Item 6 San Luis Obispo City Council Minutes of October 2, 2018 Page 7 ACTION: MOTION BY COUNCIL MEMBER GOMEZ, SECOND BY VICE MAYOR CHRISTIANSON, CARRIED 5-0 to adopt a Resolution 10947 (2018 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, establishing and increasing Parking Citation Fines,” including the revised Exhibit “A” as presented at the meeting. COUNCIL COMMUNICATIONS AND LIAISON REPORTS Mayor Harmon indicated she attended vision 2020 conference, the APCD meeting and spoke at a preschool. ADJOURNMENT The meeting was adjourned at 10:08 p.m. The next Regular City Council Meeting is scheduled for October 2, 2018 at 5:30 p.m. and 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. __________________________ Teresa Purrington City Clerk APPROVE BY COUNCIL: XX/XX/2018 Packet Page 15 Item 6 Page intentionally left blank. Packet Page 16 Item 6 Meeting Date: 10/16/2018 FROM: Daryl Grigsby, Public Works Director Prepared By: Alexander Fuchs, Parking Services Supervisor SUBJECT: ADOPTION OF AN ORDIN ANCE AMENDING TITLE 10 TO UPDATE COMMERCIAL LOADING ZONE ACCESS AND USE REQUIREMENTS, ESTABLISH BUSINESS LICENSE AND OTHER REQUIREMENTS, UPDATE VEHICLE TOW PROVISIONS, AND OTHER TITLE 10 LANGUAGE CLEAN-UP RECOMMENDATION Adopt Ordinance No. 1655 (2018 Series) approving amendments to Title 10, Vehicles and Traffic Regulations, of the Municipal Code including commercial loading zone, vehicle tow provisions, and other Title language clean-up. DISCUSSION On October 2, 2018, the City Council voted 5-0 to introduce Ordinance No. 1655, approving amendments to Title 10 Vehicles and Traffic Regulations of the Municipal Code to include the following: •10.12.090 - Removal of vehicles from street by police officers or designated employees permitted when o Allow Parking Enforcement Officers to authorize the removal of vehicles from City streets. •10.36.235 - Restricted parking in certain city parking lots o Remove the term “lot” and replace with “facility or space” and allow for the wording and posting of signs to be approved by the Public Works Director or a designee instead of the Chief of Police. •10.40.010 - Timed parking o Remove the requirement that vehicles “must move a minimum of one hundred fifty meters” and replace with “a vehicle may not return to a parking space in the same block face or within 500 feet of where previously parked on the same block face or to the same city parking facilit y for a three-hour period.” •10.40.020 - Backing into parking space o Remove the terms “municipal lot or parking structure” and replace with “city parking facility.” •10.40.060 - Parking space markings o Remove the terms “municipal lot or parking structure” and replace with “city parking facility.” •10.44.010 - Loading zones—Marking—Authority o Require paint to be placed on the sides of the curb as well as the top of the curbs of loading zones. Packet Page 17 Item 7 • 10.44.020 - Curb markings—Meanings—Authority to place o Allow passengers vehicles to use commercial loading zones for picking up and dropping off passengers. o Allow for vehicles to use passenger loading zones for up to 10 minutes. • 10.44.030 - Yellow loading zone—Time restrictions for loading and unloading o Allow passengers vehicles to use commercial loading zones for picking up and dropping off passengers. • 10.44.040 - White zones—Time restrictions for loading and unloading o Allow for vehicles to use passenger loading zones for up to 10 minutes. o Allow passenger vehicles to be unoccupied when using passenger loading zones. • 10.52.040 - Operational procedure to be followed o Remove the language “Immediately after occupancy of a parking meter space, the operator of a vehicle shall deposit a coin of the United States in the parking meter a nd if necessary turn a crank, knob or handle in accordance with the instructions posted on the face of the parking meter” and replace with “No person shall cause, allow or permit any vehicle to remain parked in any metered parking space unless a sign or signal indicating that meter fees have been paid is displayed by the adjacent parking meter.” • 10.52.050 - Unlawful to allow vehicle to remain parked after expiration of time o Add the term “sign” to indicate that a meter is expired. Following the discussion, Staff was also directed to reach out to Downtown SLO to identify potential longer-term solutions to address loading and unloading concerns primarily related to Transportation Network Companies such as Lyft and Uber. Staff anticipates engaging Downtown SLO over the next few months and returning in Spring 2019 with recommendations. This timeframe will also provide the opportunity for the Council to provide broader insight into overall parking management strategies emanating from the November 2018 parking st udy session. ENVIRONMENTAL REVIEW The recommended action is considered a “project” under the California Environmental Quality Act (CEQA) Guidelines; however, it is exempt from review per the general rule exemption sec. 15061(B)(3). FISCAL IMPACT Replacement of the commercial loading zone signs is estimated to cost $5,200 for materials and installation which will be covered through existing Parking Fund 2018-19 operating budget. Packet Page 18 Item 7 ALTERNATIVE Deny adoption of the Ordinance. City Council can choose to deny the adoption of the amendments to Title 10 of the Municipal Code. Staff does not recommend this alternative because the amendments to Title 10 of the Municipal Code will increase vehicular and pedestrian safety in the downtown area, provide ride share vehicles with areas to pick-up and drop-off passengers, and clean-up language in parking operation specific sections. Attachments: a - Ordinance 1655 Packet Page 19 Item 7 O 1655 ORDINANCE NO. 1655 (2018 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING MUNICIPAL CODE TITLE 10 REGARDING VEHICLES AND TRAFFIC WHEREAS, The Public Works Department recognizes the need for certain designated employees to have the authority to remove vehicles from City streets in support of and coordination with the Police Department; and WHEREAS, the implementation of license plate recognition (LPR) technology for timed parking enforcement purposes requires that the timed parking section be amended to clarify how far a vehicle must move and for how long the vehicle must be moved before returning to the same area in order to improve the accuracy of parking enforcement and ensure compliance with this section; and WHEREAS, the City recognizes the need to accommodate ride share vehicles in the downtown area by allowing passenger vehicles the ability to load and unload passengers in commercial loading zones without being subject to citation; and WHEREAS, the City recognizes the need to allow passenger vehicles to be left unoccupied in passenger loading zones in order for certain activities to take place such as checking into a hotel or check ing a student our from school without being subject to citation; and WHEREAS, parking specific sections must be updated to maintain consistent language throughout Title 10. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 10.12.090 of the San Luis Obispo Municipal Code, entitled Removal of vehicles from street by police officers permitted when, is hereby amended to read as follows: 10.12.090 Removal of vehicles from street by police officers or designated employees permitted when. Any regularly employed and salaried officer or designated employee of the police department or the public works department of this city may remove or cause to be removed: A. Any vehicle that has been parked or left st anding upon a street or highway for seventy- two or more consecutive hours; B. Any vehicle which is parked or left standing upon a street or highway when such parking or standing is prohibited by ordinance or resolution of this city and signs are posted giving notice of such removal; Packet Page 20 Item 7 Ordinance No. 1655 (2018 Series) Page 2 O 1655 C. Any vehicle which is parked or left upon a street or highway where the use of such street or highway or a portion thereof is necessary for the cleaning, repair or construction of the street or highway or for the installatio n of underground utilities or where the use of the street or highway or any portion thereof is authorized for a purpose other than the normal flow of traffic or where the use of the street or highway or any portion thereof is necessary for the movement of equipment, articles or structures of unusual size and the parking of such vehicles would prohibit or interfere with such use or movement; provided, that signs giving notice that such vehicle may be removed are erected or placed at least twenty-four hours prior to the removal; D. Any vehicle which is blocking designated fire lanes or alleys where parking is prohibited. SECTION 2. Section 10.36.235 of the San Luis Obispo Municipal Code, entitled Restricted parking in certain city parking lots, is hereby amended to read as follows: 10.36.235 Restricted parking in city parking facilities. No person shall stop, stand, park or leave standing a motor vehicle in any city parking facility or space where vehicular parking has been restricted by a resolution adopted by the council; provided, that signs specifying the restrictions, or conditions under which parking is permitted, shall have been posted at all entrances to such property or at designated spaces. Such signs shall be approved both as to wording and post ing by the public works director or their designee(s). SECTION 3. Section 10.40.010 of the San Luis Obispo Municipal Code, entitled Timed Parking, is hereby amended to read as follows: 10.40.010 Timed parking. When authorized signs, parking meters or curb markings have been determined by the public works director or their designee(s) to be necessary and are in place giving notice thereof, no operator of any vehicle shall stop, stand or park said vehicle between the hours established by Section 10.52.030, for a period of time longer than designated time posted by sign, parking meter or curb marking. Green curb markings shall mean no standing or parking of time longer than ten minutes up to one hour. All other time designations shall be from one hour up to ten hours. Once the designated time at an occupied space has elapsed, a vehicle may not return to a parking space in the same block face or within 500 feet of where previously parked on the same block face or to t he same city parking facility for a three-hour period. SECTION 4. Section 10.40.020 of the San Luis Obispo Municipal Code, entitled Backing into parking space, is hereby amended to read as follows: 10.40.020 Backing into parking space. No vehicle shall back in or park backwards in any city parking facility space with the exception of two -wheeled motorized vehicles. Packet Page 21 Item 7 Ordinance No. 1655 (2018 Series) Page 3 O 1655 SECTION 5. Section 10.40.060 of the San Luis Obispo Municipal Code, entitled Parking space markings, is hereby amended to read as follows: 10.40.060 Parking space markings. A. The public works director or their designee(s) is authorized to install and maintain parking space markings to indicate parking spaces adjacent to curbings on city streets and in city parking facilities where authorized parking is permitted. B. When such parking space markings are placed on the highway or in city parking facilities, subject to other and more restrictive limitations, no vehicle shall be stopped, left standing or parked other than within a single space, unless the size or shape of such vehicle makes compliance impossible. SECTION 6. Section 10.44.010 of the San Luis Obispo Municipal Code, entitled Loading Zones – Markings – Authority, is hereby amended to read as follows: 10.44.010 Loading zones—Marking—Authority. A. The public works director or their designee(s) is authorized to determine and to mark loading zones and passenger loading zones as follows: 1. At any place in the central traffic district or any business district; 2. Elsewhere in front of the entrance to any place of business or in front of any hall or place used for the purpose of public assembly. B. Loading zones shall be indicated by yellow paint upon the top and side of all curbs in the zones. C. Passenger loading zones shall be indicated by white paint upon the top and side of all curbs in the zones. SECTION 7. Section 10.44.020 of the San Luis Obispo Municipal Code, entitled Curb Markings – Meanings – Authority to place, is hereby amended to read as follows: 10.44.020 Curb markings—Meanings—Authority to place. The public works director or their designee(s) is authorized, subject to the provisions and limitations of this chapter, to place, and when required herein shall place, the following curb markings to indicate parking or standing regulations, and the curb markings shall have the meanings as set forth in this section. A. “Red” means no stopping, standing or parking at any time except as permitted by the Vehicle Code, and except that a bus may stop in a red zone marked or signed as a bus zone. B. “Yellow” means no stopping, standing or parking at any time between seven a.m. and six p.m. every Monday to Saturday, and between one p.m. and six p.m. every Sunday, unless otherwise indicated by posted signage, for any purpose other than the commercial Packet Page 22 Item 7 Ordinance No. 1655 (2018 Series) Page 4 O 1655 loading or unloading of materials by a commercially registered and licensed vehicle or a professionally signed passenger vehicle that displays an authorized commercial loading zone permit or for the purpose of loading and unloading of passengers by passenger vehicles. The commercial loading zone permit requirements and fee shall be established by resolution. C. “White” means no stopping, standing or parking for any purpose other than loading or unloading of passengers, or for the purpose of depositing mail in an adjacent mailbox, which shall not extend beyond the time necessary therefor and in no event for more than ten minutes, and such restrictions shall apply between seven a.m. and six p.m. every Monday to Saturday, and between one p.m. and six p.m. every Sunday, and except as follows: 1. When such zone is in front of a hotel or in front of a mailbox the restrictions shall apply at all times. 2. When such zone is in front of a theater the restrictions shall apply at all times. D. When the public works director or their designee(s) as authorized under this chapter has caused curb markings to be placed, no person shall stop, stand or park a vehicle adjacent to any such legible curb markings in violation of any of the provisions of this section. SECTION 8. Section 10.44.030 of the San Luis Obispo Municipal Code, entitled Yellow loading zone—Time restrictions for loading and unloading, is hereby amended to read as follows: 10.44.030 Yellow loading zone—Time restrictions for loading and unloading. A. No person shall stop, stand or park a vehicle in any yellow loading zone for any purpose other than loading or unloading materials or passengers for such time as is permitted in this section. B. The loading or unloading of materials shall be allowed only for those deliveries made by commercially registered and licensed vehicles or professionally signed passenger vehicles displaying an authorized commercial loading zone permit that is used for commercial business deliveries; also, the delivery or pickup of express and parcel post packages and United States mail. The loading or unloading of materials shall not extend beyond the time necessary therefor and in no event for more than thirty (30) minutes. Evidence that there was no activity involving the loading or unloading of materials into or from a vehicle during any continuous period of time of eight minutes or longer shall constitute prima facie evidence that the vehicle was parked longer than the time necessary for loading or unloading. The council may, by resolution, temporarily extend the time for unloading and loading of materials at select locations when it is deemed in the best interest of the public due to temporary conditions such as construction, street or public parking lot closures. Packet Page 23 Item 7 Ordinance No. 1655 (2018 Series) Page 5 O 1655 C. The loading or unloading of passengers shall not extend beyond the time necessary therefor and in no event for more than three (3) minutes and during such time no person shall leave any such vehicle unattended. SECTION 9. Section 10.44.040 of the San Luis Obispo Municipal Code, entitled White zones—Time restrictions for loading and unloading, is hereby amended to read as follows: 10.44.040 White zones—Time restrictions for loading and unloading. A. No person shall stop, stand or park any vehicle in any passenger loading zone for any purpose other than the loading or unloading of passengers for such time as is specified in this section. B. Permission herein granted to stop or park for purposes of loading or unloading passengers shall include the loading or unloading of personal baggage and shall not extend beyond the time necessary therefor and in no event for more than ten (10) minutes and during such time the vehicle may be left unoccupied to accommodate the use. C. Within the total time limits specified in this section the provisions of this section and Section 10.44.030 shall be enforced so as to accommodate necessary and reasonable loading or unloading, but without permitting abuse of the privileges hereby granted . SECTION 10. Section 10.52.040 of the San Luis Obispo Municipal Code, entitled Operational procedure to be followed, is hereby amended to read as follows: 10.52.040 Operational procedure to be followed. No person shall cause, allow or permit any vehicle to remain parked in any metered parking space unless a sign or signal indicating that meter fees have been paid is displayed by the adjacent parking meter. SECTION 11. Section 10.52.050 of the San Luis Obispo Municipal Code, entitled Unlawful to allow vehicle to remain parked after expiration of time, is hereby amended to read as follows: 10.52.050 Unlawful to allow vehicle to remain parked after expiration of time. No operator of any vehicle shall permit the vehicle to remain parked in any parking spa ce during any time that the meter is showing a sign or signal indicating that such space is illegally in use other than such time immediately after the original occupancy as is necessary to operate the meter to show legal parking. SECTION 12. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remainin g 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 Page 24 Item 7 Ordinance No. 1655 (2018 Series) Page 6 O 1655 SECTION 13. 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 2nd day of October, 2018, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 201X, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk Packet Page 25 Item 7 Ordinance No. 1655 (2018 Series) Page 7 O 1655 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 Page 26 Item 7 Meeting Date: 10/16/2018 FROM: Derek Johnson, City Manager Prepared By: Robert Hill, Interim Deputy Director SUBJECT: CALLE JOAQUIN AGRICU LTURAL RESERVE – LEASE AMENDMENT NO. 2 RECOMMENDATION Approve Lease Amendment No. 2 (Attachment A) with Central Coast Grown for the City of San Luis Obispo’s Calle Joaquin Agricultural Reserve in order to allow for an on-site caretaker on the property. DISCUSSION Background The City of San Luis Obispo acquired approximately 25 acres of land that is now known formally as the “Calle Joaquin Agricultural Reserve” and colloquially as “City Farm” through two separate land dedications arising out of the Gearhart/McBride commercial auto dealership subdivision and the Prefumo Creek Commons project. Of this, 17 acres is considered prime farmland, while the remaining acreage is primarily comprised of the riparian area of Prefumo Creek. In January 2011, the City Council adopted the Agricultural Master Plan for the City of San Luis Obispo’s Calle Joaquin Agricultural Reserve that contemplated the dispo sition of the property through long-term lease to an organization interested in sustainable agriculture practices and agricultural education with students and the community (see complete text: http://www.slocity.org/home/showdocument?id=1916). On January 7, 2013, the City entered into a 20-year agricultural ground lease with Central Coast Ag Network (CCAN) dba Central Coast Grown for such purposes. On May 2, 2013, following the successful re solution of a prior title issue pertaining to a portion of the property, the City entered into Amendment No. 1 to its lease with Central Coast Grown to include that additional area. Present Lease Agreement The stated purpose of the City’s lease arrangement with Central Coast Grown is to “put the majority of the Premises into active sustainable agricultural use, while permitting development of a portion of the Premises, not to exceed the percentage allowable per zoning regulations, for facilities for the aggregation, light processing and distribution of agricultural products grown locally or on the Premises as part of a local food system as well as facilities to provide educational and agricultural support.” In consideration of the community benefit provide d by CCAN and its non-profit 501(c)3 status, the annual rent is $1. In exchange for this favorable rate, the lease specifies certain time-based performance milestones including: annual reporting; active agricultural production of food crops (beginning December 13, 2013); plans and implementation of public programming, demonstration gardens, and educational programming and facilities. Central Coast Grown is in good standing relative to these milestones and is a valuable community partner to the City. Packet Page 27 Item 8 Current Sub-Leases In addition to the terms and conditions stated above, the City’s lease with Central Coast Grown specifically allows for subletting to other farmers, provided that the lease revenues are used in furtherance of Central Coast Grown’s non-profit status and mission driven activities occurring on the property. Mr. Javier Magana (Red Barn Farms) currently enjoys an approved sublease area of 10.75 acres. Mr. Michael Huggins (Dacite Farms) is farming an approved one -acre sub-lease area. Theresa Lees is farming and providing educational activities on a small, one-quarter acre lease area. Carmichael Environmental is leasing a two-acre plot primarily for vegetable production, as well as a small area of ornamental landscape species. Most recently, Mr. Corey Richmond has subleased a two-acre plot and is currently growing pumpkins for Halloween and other mixed vegetables. The current tenant mix is shown in the table below: 1. Magana – Red Barn Farms 10.75 acres 2. Huggins – Dacite Farms 1.00 acre 3. Lees – Our Global Family 0.25 acres 4. Carmichael Environmental 2.00 acres 5. Central Coast Grown 1.00 acres 6. Corey Richmond 2.00 acres TOTALS 17 acres Lease Amendment No. 2 Central Coast Grown and its subtenants have experienced ongoing crop pilferage, theft of tools and farm equipment, and property damage over the past several years; City Farm has very porous boundaries, is adjacent to US 101, and is located away from other active evening land uses, making it an easy target for trespass, theft, and other negative behavior. While the City’s Police Department is aware of the issue and does provide regular nighttime patrols, Central Coast Grown nevertheless desires the ability to allow for an on-site caretaker in order to provide a presence on the property at all hours. Paragraph 7(G) of the City’s master lease with Central Coast Grown specifically states that Central Coast Grown shall not “Permit any residential use or overnight camping or occupancy.” However, the City’s zoning code does allow for a caretaker fa cility in both Conservation and Open Space and Agriculture designations. The following language is proposed here to be added to paragraph 7(G): "A single recreational vehicle may be parked on the Premises, for the purpose of providing an on-site caretaker function, by an existing on-site tenant only. The purpose of the caretaker is to provide site security to the entire Premises to prevent crop and equipment theft, as well as overall site stewardship. Any such recreational vehicle shall not be parked so as to prevent tenants of any other sublease on the Premises from using their farmable area . The recreational vehicle shall be fully self-contained and discharge of waste or sewage into the City’s sewer system or by any others means is prohibited. No hose, electrical cord, pipe, wire, or other device extending from the vehicle may be permitted. The recreational vehicle shall be parked in a location and be maintained in a condition wherein it can be moved upon 24 hours' notice by either City or CCAN. The City Manager shall approve in advance any such sublease amendment for an on-site caretaker function." Packet Page 28 Item 8 CONCURRENCES Lease Amendment No. 2 has been reviewed by the City Attorney’s office for sufficiency and to ensure that the City’s master lease is properly incorporated therein. ENVIRONMENTAL REVIEW A Mitigated Negative Declaration (MND) was adopted by City Council in association with Council’s approval of the Agricultural Master Plan for the City of San Luis Obispo’s Calle Joaquin Agricultural Reserve (ER # 44-10). The subject area has been regularly farmed for many years and no additional environmental review is required in association with the subject Lease Amendment under the California Environmental Quality Act (CEQA). FISCAL IMPACT The fiscal impact of the proposed Lease Amendment is comprised of modest staff time to oversee and manage the chain of lease agreements. It is beneficial and fiscally positive to the City to have a master tenant responsible for day-to-day management, maintenance, and upkeep of the property, as well as contribute to the local agricultural economy through the production of food crops. ALTERNATIVES The City Council could choose to: 1. Approve Lease Amendment No. 2 with requested changes. 2. Deny Lease Amendment No. 2. 3. Continue the item with specific direction of more information or discussion time is required before taking action. Attachments: a - CCAN Lease Amendment No. 2 Packet Page 29 Item 8 1 AMENDMENT NO. 2 AGRICULTURAL GROUND LEASE BETWEEN THE CITY OF SAN LUIS OBISPO AND CENTRAL COAST AG NETWORK This Amendment No. 2 to the Agricultural Ground Lease (“Lease”) is entered into this __ day of __________, 2018, by and between the City of San Luis Obispo (the "City") and Central Coast Ag Network, a California public benefit non-profit corporation ("CCAN"). RECITALS A. The City owns certain agricultural land within City limits, commonly identified as the Calle Joaquin Agricultural Reserve, 0 Calle Joaquin, San Luis Obispo. B. CCAN is a nonprofit corporation whose purpose is to champion a sustainable local and regional food system to ensure a nourishing, diverse and abundant supply of food that is resilient, safe and secure, and CCAN seeks to manage the on-site agricultural production and agricultural education and activities under sustainable agriculture practices. C. On January 7, 2013, the City and CCAN entered into the Lease for the purpose of putt ing the majority of the Premises into active sustainable agricultural use, while permitting development of a portion of the Premises, not to exceed the percentage allowable per zoning regulations, for facilities for the aggregation, light processing and distribution of agricultural products grown locally or on the Premises as part of a local food system as well as facilities to provide educational and agricultural support. D. On February 1, 2013, the City acquired additional property and on May 2, 2013 entered into Amendment No. 1 with CCAN to add this additional property into the Premises. E. The City and CCAN now desire to amend the lease agreement to allow for an on-site caretaker in order to help prevent trespass, theft, and property damage . AGREEMENT For good and valuable consideration, City and CCAN hereby agree as follows: 1. Paragraph 7(G) of the City’s master lease with CCAN is hereby amended to read as follows: CCAN shall not “Permit any residential use or overnight camping or occupancy. However, a single recreational vehicle may be parked on the Premises, for the purpose of providing an on- site caretaker function, by an existing on-site tenant only. The purpose of the caretaker is to provide site security to the entire Premises to prevent crop and equipment theft, as well as overall site stewardship. Any such recreational vehicle shall not be parked so as to prevent tenants of any other sublease on the Premises from using their farmable area. The recreational vehicle shall be fully self-contained and discharge of waste or sewage into the city’s sewer system or by any others means is prohibited. No hose, electrical cord, pipe, wire, or other device extending from the vehicle may be permitted. The recreational vehicle shall be parked in a location and be maintained in a condition wherein it can be moved upon 24 hours' notice by Packet Page 30 Item 8 2 either City or CCAN. The City Manager shall approve in advance any such sublease amendment for an on-site caretaker function." 2. All other terms and conditions of the Lease remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. CITY OF SAN LUIS OBISPO _________________________________ Mayor ATTEST: ____________________________ City Clerk Approved: ____________________________ City Manager Approved to as form: ____________________________ City Attorney CENTRAL COAST AG NETWORK, a California public benefit non-profit corporation __________________________ President ___________________________ Secretary Packet Page 31 Item 8 Page intentionally left blank. Packet Page 32 Item 8 Meeting Date: 10/16/2018 FROM: Robert Hill, Interim Deputy Director, Office of Sustainability Prepared By: Chris Read, Sustainability Manager SUBJECT: AUTHORIZATION TO SUBMIT PG&E ON-BILL FINANCING LOAN AGREEMENTS IN SUPPORT OF ENERGY EFFICIENCY LIGHTING RETROFITS RECOMMENDATIONS 1. Authorize staff to negotiate PG&E On-Bill Financing Loan Agreements (Attachment A); 2. Adopt a resolution making findings on energy savings as required by Government Code 4217.12 (Attachment B); and 3. Authorize the City Manager to submit On-Bill Finance Loan Agreements and documents related to the Loan Agreements to PG&E in a form subject to the approval of the City Attorney. DISCUSSION Background On August 21, 2018, Council received information about the On-Bill Financing opportunity for energy efficiency lighting retrofits (as described below) to implement the Climate Action Major City Goal and achieve cost savings as outlined in the City’s Fiscal Health Response Plan. Council voted 5-0 in the affirmative to “Authorize the submittal of the non-binding PG&E On- Bill Financing Application.” This report provides a brief overview of the On-Bill Financing Opportunity (for a full report, see the Council Agenda Report for Item #16 on the August 21, 2018 Council Agenda), an update on the On-Bill Financing Applications, considerations regarding California Government Code 4217, and process and timing considerations should Council approve staff’s recommendations. On-Bill Financing Opportunity In April of 2018, the SLO EnergyWatch Partnership provided an overview of the City of San Luis Obispo municipal operations energy use by building/facility. EnergyWatch Partnership staff also provided access to resources for further assessment and lighting energy efficiency project implementation, including introduction to PG&E’s trade professional Eco Green Solutions. Eco Green Solutions is a PG&E certified “Trade Professional and Authorized Agent” and provide s energy efficiency audits, installs products consistent with an approved project, and provide s access to PG&E rebates and financing tools. Packet Page 33 Item 9 Importantly, PG&E and Eco Green Solutions provide access to and assistance with utilizing PG&E’s “on-bill financing” (OBF). OBF is a financing mechanism provided by PG&E that allows the City to receive a 0% loan for energy efficiency projects with no up-front costs. The City then amortizes the debt using monthly bill savings achieved through the project. During the payback period, the City’s bill would appear unchanged. Upon full payback, the City’s energy bill would reflect the savings. On-Bill Finance Application Update Since submitt al of the non-binding PG&E On-Bill Financing Applications, staff has received approvals from PG&E for lighting energy efficiency retrofit projects at ten properties, as outlined in Table 1. The projects are a mix of lighting fixture retrofits and replacements. For each approved property, PG&E confirmed, and where necessary amended, project performance assumptions on the initial applications to more accurately reflect current and projected operating conditions. For each approved project, PG&E has held the loan amount in reserve and has provided On-Bill Financing Agreements (Attachment A). Staff has the capacity to further refine the assumptions in the agreements, including eliminating fixtures, requesting alternative fixtures, requesting additional components such as controls/dimmers, and adjusting operating hour assumptions. Table 1 lists the project sites and provides the estimated project performance for each site and in total. The ten proposed projects would be financed with approximately $1.3 million in OBF financing and are estimated to save a total of $18,478 per month. Of that total, approximately $377,142 in OBF financed retrofits would occur in Parking Fund properties and would save approximately $7,847 per month. The remaining $964,012 in OBF financed retrofit costs and the associated $10,631 monthly savings would benefit the General Fund. Table 1. Project List and Performance Estimates Project Site Estimated Project Cost After Rebates Estimated Energy Bill Savings per Month Simple Payback (Years) 1. 871 Marsh Street Parking Structure $213,238.96 $4,334.82 4.1 2. 842 Palm Street Parking Structure $104,691.88 $2,083.33 4.2 3. 919 Palm Street Parking Structure $61,474.39 $1,428.73 3.6 4. City Hall $87,380.84 $797.90 9.1 5. Corporation Yard $210,586.56 $1,810.32 9.7 6. Police Station and Annex $114,302.24 $1,126.72 8.5 7. Ludwick Community Center $51,837.00 $476.61 9.1 8. Damon Garcia Park $412,859.18 $5,048.33 6.8 9. Santa Rosa Park $60,989.76 $1,130.57 4.5 10. Parks and Recreation Office $24,908.92 $240.36 8.6 Total $1,342,269.73 $18,477.69 Note: Costs, savings, and payback estimates are vetted by PG&E as described in Attachment A. These figures are subject to revision based on project negotiations. Note: Damon Garcia Park (#8), Santa Rosa Park (#9), and the Parks and Recreation Office (#10) applications are still in the approval process. Numbers provided in Table 1 for these projects are estimates and are subject to change based on PG&E vetting and further project negotiations. Packet Page 34 Item 9 California Government Code 4217.10 et seq. California Government Code section 4217 provides broad contracting authority for public agencies to enter into “energy service contracts” such as the OBF. To illustrate consistency with Government Code 4217, the City provided public notice for this meeting, and must adopt a resolution making certain findings related to energy and cost savings. The resolution, which is provided as Attachment B, would allow the City to continue working with PG&E and Eco Green Solutions to implement the projects described in this report. Process and Timing Considerations Should Council approve staff’s recommendation, staff would proceed with negotiating OBF agreement terms and conditions for each of the ten sites. Staff has already requested that Eco Green Solutions install demonstration fixtures at City Hall and the 919 Parking Structure to ensure fixture and installation quality. As specific site project characteristics, expected performance, terms, and conditions meet staff’s expectations and are in a form to the satisfaction of the City Attorney, the OBF agreements would be provided to the City Manager for execution. Staff expects all project sites with OBF agreeme nts submitted in October to be fully installed and operational by December 31, 2018.1 CONCURRENCES The Public Works Department concurs with this report. ENVIRONMENTAL REVIEW The execution of an OBF Agreement with PG&E and the subsequent lighting fixture retrofits and replacements are statutorily and categorically exempt from environmental review on the basis that the projects are: installation of LED upgrades in and on existing facilities or at existing parking lots (Public Resources Code § 21080.35; new construction or conversion of small structures (CEQA Guidelines § 15303); minor alterations to land (CEQA Guidelines § 15304); projects which consist of the construction or placement of minor accessory structures to existing facilities (CEQA Guideline s § 15311); and activities which can be seen with seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines § 15061(b)(3)). FISCAL IMPACT Should the City proceed with a project using OBF, no capital outlay funding would be required. Payback of loan amounts will be realized in each facility’s utility bill based on the savings calculated by PG&E. Once the loan amount is paid off via the utility bill, savings will be reali zed from then forward. Table 1 provides an overview of projected savings by project site based on the preliminary analysis. As currently estimated, once the payback period has concluded, the project would save the Parking Fund approximately $7,8 47 per month and the General Fund approximately $10,631 per month. 1 PG&E’s incentives and financing programs run on calendar year cycles. If a project is not installed b y December 31, 2018, staff would need to resubmit OBF applications for 2019. Packet Page 35 Item 9 ALTERNATIVES 1. The City could pursue an alternative financing mechanism for funding lighting retrofits. Staff does not recommend this alternative as the 0% financing and ability to use electricity sav ings as loan payments allows the City to achieve lighting, greenhouse gas, and cost savings objectives without any up-front costs. 2. The City could choose not to pursue lighting retrofits at this time. Staff does not recommend this alternative as it does not provide greenhouse gas emissions reductions or electricity bill savings. Attachments: a - On -Bill Financing Agreements b - Gov. Code 4217 Resolution Packet Page 36 Item 9 Packet Page 37 Item 9 Packet Page 38 Item 9 Packet Page 39 Item 9 Packet Page 40 Item 9 Packet Page 41 Item 9 Packet Page 42 Item 9 Packet Page 43 Item 9 Packet Page 44 Item 9 Packet Page 45 Item 9 Packet Page 46 Item 9 Packet Page 47 Item 9 Packet Page 48 Item 9 Packet Page 49 Item 9 Packet Page 50 Item 9 Packet Page 51 Item 9 Packet Page 52 Item 9 Packet Page 53 Item 9 Packet Page 54 Item 9 Packet Page 55 Item 9 Packet Page 56 Item 9 Packet Page 57 Item 9 Packet Page 58 Item 9 Packet Page 59 Item 9 Packet Page 60 Item 9 Packet Page 61 Item 9 Packet Page 62 Item 9 Packet Page 63 Item 9 Packet Page 64 Item 9 Packet Page 65 Item 9 Packet Page 66 Item 9 Packet Page 67 Item 9 Packet Page 68 Item 9 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, MAKING FINDINGS ON ENERGY SAVINGS AND DETERMINING OTHER MATTERS IN CONNECTION WITH ENERGY EFFICIENCY RETROFITS WHEREAS, it is the policy of the State of California and the intent of the State Legislature to promote all feasible means of energy conservation and all feasible uses of alternative energy supply sources; and WHEREAS, the City of San Luis Obispo (“City”) desires to reduce energy costs at its facilities; and WHEREAS, the City proposes to enter into an On-Bill Financing Agreement (“OBF Agreement ”) and related contract documents with PG&E (“Utility”), who in turn will use EcoGreen Solutions (“Contractor”) as the Contractor for facilities at the City’s real property sites, pursuant to which Contractor will remove old lighting fixtures and install new Energy Star and DLC listed LED lighting in the City’s facilities. Contractor will also arrange with the Utility to secure rebates and incentives to help lower the cost of the project ; and WHERAS, through the Utility On-Bill Financing Program the City will have no capital outlay and will continue to pay their utility bills through the loan’s existence ; and WHEREAS, Contractor has provided the City with analysis showing the financial and other benefits of entering into the OBF Agreement, which analysis is attached here to as Exhibit A and made part hereof by this reference; and WHEREAS, Exhibit A includes data showing that the anticipated cost to the City for the electrical energy saved by the LED upgrades will be equal to/or less than the anticipated cost of the project thus making these projects bill neutral; and WHEREAS, Contractor was the selected vendor for the On-Bill Financing project due to their status as a PG&E Customer Authorized Agent and Contractor’s carrying the costs and structuring of the project to have no capital outlay to the City. T he City adopts Utility’s competitive process as its own; and WHEREAS, the City proposes to enter into the On-Bill Financing Agreements and related contract documents in substant ially the form presented at this meeting, subject to such changes, insertions or omissions as the City Manager and City Attorney reasonably deems necessary following the Council’s adoption of this Resolution; and WHEREAS, pursuant to Government Code section 4217.12, this Council held a public hearing, public notice of which was given two weeks in advance, to receive public comment . Packet Page 69 Item 9 Resolut ion No. _____ (2018 Series) Page 2 R ______ NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo t hat: SECTION 1. The terms of the OBF Agreements and related agreements are in the best interests of the City. SECTION 2. In accordance with Government Code section 4217.12, and based on data provided by Exhibit A, the Council finds that the anticipated cost to the City for lighting retrofits provided by the OBF Agreements will be less than or equal to the anticipated cost to the City of electrical energy that would have been consumed by the City in the absence of the OBF Agreements. SECTION 3. The City Manager and City Attorney are hereby authorized and directed to negotiate any further changes, insertions and omissions to the OBF Agreements as they reasonably deem necessary, and thereafter to execute and deliver the OBF Agreements following the Council’s adoption of this Resolution. The Cit y Manager is further authorized and directed to execute and deliver any and all papers, instruments, opinions, certificates, affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper for carrying out this Resolution and said Agreements. SECTION 4. Environmental Review. The City Council hereby determines that the execution of an OBF Agreement with Utility are statutorily and categorically exempt from environmental review on the basis that the project s are: installation of LED upgrades in and on existing facilities or at existing parking lots (Public Resources Code § 21080.35; new construction or conversion of small structures (CEQA Guidelines § 15303); minor alterations to land (CEQA Guidelines § 15304); projects which consist of the construction or placement of minor accessory structures to existing facilities (CEQA Guidelines § 15311); and activities which can be seen with seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines § 15061(b)(3)). SECTION 5. City staff are hereby authorized to file and process a Notice of CEQA Exemption for the each project in accordance with CEQA and the State CEQA Guidelines, and the findings set forth in this Resolution. 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 Page 70 Item 9 Resolut ion No. _____ (2018 Series) Page 3 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 Page 71 Item 9 Page intentionally left blank. Packet Page 72 Item 9 Meeting Date: 10/16/2018 FROM: Robert Hill, Interim Deputy Director, Office of Sustainability Prepared By: Chris Read, Sustainability Manager SUBJECT: CLIMATE CHANGE GRANT APPLICATION RECOMMENDATION Authorize staff to submit an application, in coordination with the Local Government Commission, for the Caltrans SB1 Adaptation Planning Grant in the amount of approximately $700,000. DISCUSSION Background In June of 2017, the City Council adopted the 2017-2019 Financial Plan, which identifies Climate Action as a Major City Goal (MCG). Staff continues to look for grant support to implement the actions in the MCG, including implementing greenhouse gas (GHG) emissions reduction measures, building staff and community technical capacity, and updating the City’s 2012 Climate Action Plan. The MCG primarily focuses on reducing GHGs. However, another important component of climate action is preparing the City and the community to adapting to and becoming resilient to a changing climate. Due to several triggering requirements, the City will be updating the Safety Element of the General Plan in late 2019 or early 2020. The Safety Element typically focuses on planning for traditional natural and human made hazards and disasters, however, state law requires that the Safety Element also address issues related to the impacts of climate change. Given the substantial time that is required to apply for a grant, receive the grant, and conduct a competitive procurement process to hire a consultant to implement the grant’s work program, staff has been proactively looking for grants to assist with the climate change component of the Safety Element update. This Council Agenda Report describes and requests approval to submit to the Caltrans SB1 Adaptation Planning Grant to provide comprehensive support fo r the climate change components of the Safety Element update. Packet Page 73 Item 10 Caltrans SB1 Adaptation Planning Grant On April 28, 2017, Governor Edmund G. Brown Jr. signed into law Senate Bill (SB) 1 - The Road Repair and Accountability Act of 2017, a transportation fu nding bill that provides a reliable source of funds to maintain and integrate the State’s multimodal transportation system. Per Section 16321 of the bill, $20 million in climate change adaptation planning grants have been allocated to local and regional agencies for adaptation planning. Of the $20 million for climate change adaptation, $7 million dollars were allocated for the Fiscal Year (FY) 2017 -18 grant cycle, $7 million dollars are available in 2018-19, and $6 million dollars will be available in 2019-20. In August of 2018, Local Government Commission (LGC) and City staff began evaluating the potential of SB1 funding to meet portions of the City’s expected Safety Element Update needs. After confirming the value of an SB1 grant award for the City’s pla nning efforts, staff worked closely with LGC to develop a scope of work. Although the application is in draft form and subject to change, the general scope items are expected to include: 1. Project Management and Administration 2. Adaptation/Safety Element Background Report: Historical, Existing, and Projected Hazards, Vulnerability, and Risk 3. Adaptation and Resilience Policy Audit 4. Safety Development, Adaptation Plan, and Implementation Strategy 5. Outreach and Capacity Building LGC and City staff expect to request a grant of approximately $700,000. This total is subject to final revisions prior to submittal and any revisions requested by Caltrans as part of the project approval process. Caltrans requires an 11.47% local match for adaptation planning projects. Should the submitted application request of $700,000 be awarded, it would result in an $80,290 match requirement. This total would be met through staff time, matching grants, and via a Safety Element update CIP request in the 2019-21 Financial Plan. Accepting the grant would require additional Council action. Should the City be awarded and accept the grant, selecting the technical consultant to implement the grant would also require additional Council action. SB1 Adaptation Planning Grant program guidelines are provided as Attachment A. CONCURRENCES The Fire, Public Works, Utilities, and Community Development Department s concur with the recommendation included in this Council Agenda Report. 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 the CEQA Guidelines Sec. 15278. Packet Page 74 Item 10 FISCAL IMPACT Should the SB1 Adaptation Planning grant be successfully awarded, a total of approximately $80,290 in matching “in kind” labor and/or direct funds would be required. This total would be met via a Safety Element Update CIP request in the 2019 -21 Financial Plan, offset by allowable staff time contribution and successfully obtained matching grants. ALTERNATIVE Do not submit a grant application. Council may direct staff to not submit a grant application. If the grant is not approved, staff will cease work on the effort. Staff does not recommend this alternative because of the financial opportunity to le verage available grant funds to update the General Plan’s Safety Element. Attachments: a - SB1 Adaptation Planning Grant Program Guideline Packet Page 75 Item 10 Application Deadline California Department of Transportation Division of Transportation Planning FY 2019-20 Grant Application Guide Adaptation Planning Grants from Senate Bill 1 The Road Repair and Accountability Act of 2017 July 23, 2018 FINAL DRAFT CALTRANS ADAPTATION PLANNING GRANT PROGRAM November 2, 2018 at 5:00PM pmPM Packet Page 76 Item 10 [Intentionally left blank] Packet Page 77 Item 10 Table of Contents Adaptation Planning Grant Program….…...……………………………..…………………………………………… 1 Funding…….……………………….………………………………………………………………………………………. 2 Grant Program Considerations………………………………………………………………………………………… 3 Grant Program Overview………………………………………………………………………………………………… 6 Tools and Resources……………………………………………………………………………………………………. 9 General Information and Requirements…………………………………………………….................................... 11 Application Preparation….…………………………………………..………………................................................. 17 • Grant Application Checklist …………………………………………….………………………………………. 20 • Grant Application Preview ……………………………………………………............................................... 21 • Scope of Work Requirements ………………...………..…………………................................................... 28 • Project Timeline Requirements ………………………..……………………….………………………………. 33 • Third Party In-Kind Valuation Plan Requirements ………………………..…………………........................ 35 • Local Resolution Requirements …………………....................................................................................... 36 Caltrans District and Regional Agency Boundaries Map…………………........................................................ 38 Caltrans District Contact List…..………............................................................................................................. 39 ADA Notice: For individuals with sensory disabilities, this document is available in alternate formats. For information call (916) 654-6410 or TDD (916) 654-3880 or write Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814. Packet Page 78 Item 10 1 July 2018 Final Draft Adaptation Planning Grant Program On April 28, 2017, Governor Edmund G. Brown Jr. signed into law Senate Bill (SB) 1 - The Road Repair and Accountability Act of 2017, a transportation funding bill that provide s a reliable source of funds to maintain and integrate the State’s multimodal transportation system . Per Section 16321 of the bill, $20 million in climate change adaptation planning grants has been allocated to local and regional agencies for adaptation planning . Seven million dollars were allocated for the Fiscal Year (FY) 2017-18 grant cycle, seven million dollars are available in 2018-19, and six million dollars will be available in 2019-20. Climate change adaptation aims to anticipate and prepare for climate change impacts to reduce the damage from climate change and extreme weather events . Adaptation is distinct from, but complements, climate change mitigation, which aims to reduce GHG emissions. This funding is intended to advance adaptation planning on California’s transportation infrastructure, including but not limited to roads, railways, bikeways, trails, bridges, ports, and airports. Eligible projects must have a transportation nexus per Article XIX Section s 2 and 3 of the California Constitution. Applicants who have adaptation planning efforts underway as well as those who have not yet started adaptation work are encouraged to apply. Table 1: Available Funds by Fiscal Year FY Grant Cycle Adaptation Planning Grant Funds 2017-18 $7 million 2018-19 $7 million 2019-20 $6 million Purpose California is leading the way on GHG emissions reductions to avoid the worst consequences of climate change, but no matter how quickly we reduce our polluting emissions, climate impacts will still occur . Climate change poses many threats to our communities’ health, well-being, environment, and property. Many impacts – increased wildfires, droughts, landslides, rising sea levels, floods, severe storms, heat waves, and impacts to wildlife – are occurring already and will only become more frequent and severe. Climate change is increasingly impacting the State’s transportation system. Adaptation efforts will enhance the resiliency of the transportation system to help protect against climate impacts . The overarching goal of this grant program is to support planning actions at local and regional levels that advance climate change adaptation efforts on the transportation system, especially efforts that serve the communities most vulnerable to climate change impacts . Taking steps now to adapt to climate change will protect public health and safety, infrastructure, and our economy into the future. Packet Page 79 Item 10 2 July 2018 Final Draft Funding The Adaptation Planning grants are funded by the Public Transportation Account (PTA). The FY 2019-20 funding amount is six million dollars and will be entirely competitively awarded. The minimum application amount is $100,000 and the maximum application amount is $1,000,000. The required local match is 11.47 percent. Table 2: Adaptation Planning Grants Summary FUND SOURCE PURPOSE WHO M AY APPLY LOCAL MATCH Public Transportation Account Budget State funds $7,000,000 Grant Min $100,000 Grant Max $1,000,000 Support planning actions at local and regional levels that advance climate change adaptation efforts on the transportation system, especially efforts that serve the communities most vulnerable to climate change impacts. The following are eligible to apply as a primary applicant: • MPOs • RTPAs • Transit Agencies • Cities and Counties • Native American Tribal Governments • Local and Regional Agencies • Special Districts The following are eligible to apply as a sub-applicant: • MPOs/RTPAs • Transit Agencies • Cities and Counties • Native American Tribal Governments • Local and Regional Agencies • Special Districts • Universities and Community Colleges • Community-Based Organizations • Non-Profit Organizations (501.c.3) • Other Public Entities** 11.47% minimum (in cash or an in- kind* contribution). Staff time from the primary applicant counts as cash match. * For in-kind contribution requirements, refer to Page 13 of this Guide. ** Public entities include state agencies, the Regents of the University of California, district, public authority, public agency, and any other political subdivision or public corporation in the State (Government Code Section 811.2). Packet Page 80 Item 10 3 July 2018 Final Draft Grant Program Considerations The Grant Program supports related State initiatives, explained further below. Competitive applicants will reference in their application the identified State initiatives (as applicable) and how the proposed project advances these initiatives, including: • Executive Order S-13-08 • Executive Order B-30-15 • California Transportation Plan (CTP) 2040 • Regional Transportation Plan Guidelines • 2017 General Plan Guidelines • Integrated Climate Adaptation and Resiliency Program (ICARP) • Addressing Disadvantaged Communities State Policy Executive Order S-13-08 EO-S-13-08 directs state agencies to plan for sea level rise and climate impacts through coordination of the state Climate Adaptation Strategy (Safeguarding California). http://www.climatechange.ca.g ov/state/executive_orders.html Executive Order B-30-15 Executive Order B-30-15 specifically addresses the need for all of the State’s planning and investments to consider the exposures and risks from a changing climate, anticipating current and future impacts and disruptions that are likely to occur. The order establishes a California GHG emissions reduction target of 40 pe rcent below 1990 levels by 2030, directs state government to take climate change into account in all planning and investment decisions, and employ full life -cycle cost accounting to evaluate and compare infrastructure investments and alternatives. Executive Order B-30-15 describes four guiding principles when making planning and investment decisions: • Priority should be given to actions that both build climate preparedness and reduce GHG emissions • Where possible, flexible and adaptive approaches should be taken to prepare for uncertain climate impacts • Actions should protect the state's most vulnerable populations • Natural infrastructure solutions should be prioritized The Governor’s Office of Planning and Research led a Technical Advisory Group to develop guidance to help State agency personnel decide when to take climate change into account when planning infrastructure and investments, and how to do so while implementi ng the four above principles, including how to increase social equity and health for vulnerable communities in the course of planning and operations. The Guidance to implement Executive Order B -30-15 is available here: http://opr.ca.gov/docs/20180313 -Building_a_Resilient_CA.pdf . California Transportation Plan 2040 Applications should align with the goals and policies cited in the California Transportation Plan 2040 (specifically, Goal 2 “Preserve the Multimodal Transportation System,” Policy 3 “Adapt the transportation system to reduce impacts fro m climate change”). http://www.dot.ca.gov/hq/tpp/californiatransportationplan2040/Final%20CTP/FINALCTP2040 -Report- WebReady.pdf Packet Page 81 Item 10 4 July 2018 Final Draft 2017 RTP Guidelines On January 18, 2017 the California Transportation Commission adopted the 2017 RTP Guidelines for Metropolitan Planning Organizations (MPOs) and the 2017 RTP Guidelines for RTPAs. Chapter 6.30 in the RTP Guidelines for MPOs (or Chapter 6.25 in the RTP Guidelines for RTPAs) focuses on “Adaptation of the Regional Transportation System to Climate Change.” http://www.dot.ca.gov/hq/tpp/offices/orip/rtp/index.html 2017 General Plan Guidelines The General Plan Guidelines guide the preparation and content of general plans for all cities and counties in California. Local governments are now required, per SB 379, to address climate change adaptation and resiliency in their general plans. The General Plan Guidelines provide guidance in meeting SB 379 requirements (see pages 150 -158). http://www.opr.ca.gov/planning/general-plan/guidelines.html Integrated Climate Adaptation and Resiliency Program Senate Bill 246 (Wieckowski, 2015) established the ICARP within the Governor’s Office of Planning and Research to coordinate regional and local efforts with State climate adaptation strategies (Public Resources Code Section 71354). In support of these efforts, grantees will provide periodic reports to the ICARP Technical Advisory Council (see reporting requirements on page 11). http://www.opr.ca.gov/planning/icarp/ Addressing Disadvantaged Communities Caltrans encourages applicants to address transportation needs and deficiencies in disadvantaged communities, including communities vulnerable to climate change impacts . The optional tools below are intended to help applicants define a context -dependent definition of a disadvantaged community. Regional and/or local definitions of disadvantaged communities are acceptable . Applicants may also consider other population characteristics, such as income or level of education. Tools and resources for identifying disadvantaged communities are provide d below: Defining Vulnerable Communities in an Adaptation Context, OPR Resource Guide The Governor’s Office of Planning and Research, with input from the ICARP Technical Advisory Council, developed a resource guide for practitioners to use when first considering how to define vulnerable communities in an adaptation context. The document includes: (1) The ICARP Technical Advisory Council’s definition of climate-vulnerable communities, (2) A summary of existing statewide assessment tools that can be used to identify vulnerable communities in a climate adaptation context, including a crosswalk with the ind icators that are required elements of an SB 1000 analysis; (3) Additional indicators that could be used to assess underlying vulnerability on a case-by-case basis; (4) A list of process guides that can serve to aid agencies undertaking efforts to define vulnerable communities SB 535 (De Leon, Statutes of 2012) Senate Bill 535 (SB 535) tasked the California Environmental Protection Agency with defining disadvantaged communities. SB 535 may assist applicants with defining disadvantaged communities and the many factors to consider. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201120120SB535 Packet Page 82 Item 10 5 July 2018 Final Draft Assembly Bill 1550 (Gomez, Statutes of 2016) Assembly Bill 1550 provides definitions for low-income households and low-income communities that may be considered in application development. (1) “Low-income households” are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093. (2) “Low-income communities” are census tracts with median household incomes at or below 80 percent of the statewide median income or w ith median household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB1550 CalEnviroScreen Version 3.0 CalEnviroScreen is a screening methodology that can be used to help identify California communities that are disproportionately burdened by multiple sources of pollution. http://oehha.maps.arcgis.com/apps/View/index.html?appid=c3e4e4e1d115468390cf61d9db83efc4 EJSCREEN: Environmental Justice Screening and Mapping Tool EJSCREEN, developed by the United States Environmental Protection Agency, geospatially displays public health and environmental data and allows users to compare local data against state and national averages. https://www.epa.gov/ejscreen California Health y Places Index (HPI) The Public Health Alliance developed a state-wide interactive data and mapping tool that provides a detailed snapshot of the social and environmental conditions that contribute to health . The HPI includes a composite score for each Census tract in the State. The higher the score, the healthier the community conditions. HPI includes diverse non-medical economic, social, political and environmental factors that influence physical and cognitive function, behavior , disease, and life expectancy. https://healthyplacesindex.org/ California Department of Public Health (CDPH) Climate Change and Health Profile Reports The CDPH Climate Change and Health Profile Reports are designed to help counties in California prepare for the health impacts related to climate change. The reports present projections for county and regional climate impacts, the climate -related health risks, and local populations that could be vulnerable to climate effects. https://www.cdph.ca.gov/Programs/OHE/Pages/ClimateHealthProfileReports.aspx CDPH Climate Change and Health Vulnerability Indicators (CCHVIs) CCHVIz is the interactive data visualization platform for the Climate Change & Health Vulnerability Indicators for California (CCHVIs). It is produced by the CA Department of Public Health's Office of Health Equity. The CalBRACE Project produced Climate Change a nd Health Vulnerability Indicators to help stakeholders better understand the people and places that are more susceptible to adverse health impacts associated with climate change. They are a suite of 21 indicators (18 available here) of climate exposure, population sensitivity, and adaptive capacity to the impacts of climate change. These indicators are being used by local and state programs to plan to meet the needs of the communities most at risk of harm from climate change. https://discovery.cdph.ca.gov/ohe/CCHVIz/ Packet Page 83 Item 10 6 July 2018 Final Draft CDPH Healthy Communities Data and Indicators Project (HCI) The goal of the HCI is to enhance public health by providing a standardized set of statistical measures, data, and tools that a broad array of sectors can use for planning healthy communities and evaluating the impact of plans, projects, policy, and environmental changes on community health. https://www.cdph.ca.gov/Programs/OHE/Pages/HCI.aspx Grant Program Overview The overall intent of the Adaptation Planning grant program is to support local and regional adaptation planning efforts on the transportation system . Grant Specific Objectives Applicants must demonstrate how the proposed effort will accomplish the following: • Demonstrate on-going collaboration and partnerships between sectors and jurisdictions, across levels of government at a regional scale • Identify co-benefits of the adaptation work, such as benefits to public health, natural ecosystems, air quality, social equity, the economy , or reductions in GHG. Applicants should demonstrate how the proposed effort will accomplish one or more of the following: • Identify climate change impact risks to multimodal transportation infrastructure in the project area • Identify specific transportation infrastructure vulnerabilities1 to climate change impacts • Identify adaptation strategies and specific actions to remedy identified climate related vulnerabilities • Advance the planning of specific climate adaptation projects, such as developing a cost estimate or conceptual design • Include economic analysis and/or cost -benefit analysis of identified adaptation strategy or strategies Competitive applications should include one or more of the following: • Identify benefit to disadvantaged and/or vulnerable communities, including transit-dependent populations2 (when applicable) • Demonstrate collaboration and partnerships with diverse external stakeholders such as businesses, non-governmental agencies, community-based organizations, and community residents 1 Transportation infrastructure includes, but is not limited to, roads, railways, bikeways, trails, bridges, ports, and airports. Vulnerable transportation infrastructure is transportation infrast ructure that is susceptible to the impacts of climate change (e.g. a pedestrian-use trail that cuts through a forested area that is expected to see increased fire risk due to climate change). 2 Transit-dependent individuals are defined as individuals who are “too young, too old, cannot afford or do not have access to an automobile or rely on transit to reach their destinations” (Westside Transportation Access Needs Assessment – Short and Long Term Improvements, Papandreou, 2014). Packet Page 84 Item 10 7 July 2018 Final Draft Example Adaptation Planning Grant Project Types California is expected to see a wide variety of climate change impacts, including increased wildfires, droughts, landslides, rising sea levels, floods, severe storms, heat waves, and impacts to wildlife. We would like to see diverse project types from a diverse pool of applicants to respond to these impacts. Applicants who have adaptation planning efforts underway as well as those who have not yet started adaptation work are encouraged to apply. The examples below are provided to illustrate the range of projects that may be appropriate for the grant program as well as to provide ideas to potential applicants. However, proposed projects are not constrained by the categories below. • Climate vulnerability assessments • Extreme weather event evacuation planning, which could include: o Identifying communities and individuals with inadequate access to transportation (e.g. survey to determine number and location of transit dependent residents ) o Planning for increased transportation options in evacuation corridors o Planning for roadway warning systems for extreme weather events • Resilience planning • Transportation infrastructure adaptation plans, such as: o Evaluating the feasibility of realigning/relocating transportation infrastructure impacted by sea level rise o Evaluating the feasibility of a proposed wildlife underpass or overpass • Natural and green infrastructure planning (e.g. wetlands restoration along transportation corridors to protect transportation infrastructure f rom flooding and storm impacts, identifying and removing barriers to habitat and wildlife connectivity.) • Integration of transportation adaptation planning considerations into existing plans, such as a climate mitigation or adaptation plan, Local Coastal Program, Local Hazard Mitigation Plan, General Plan (including meeting Senate Bill 379 requirements ), or other related planning efforts • Evaluation of or planning for other adaptation strategies, such as: o Providing transit shelters with shade, water, or other means of cooling in locations expected to see temperature increases o Planning for decentralized energy and storage for safeguarding against loss of power and impacts to electric vehicles due to climate -related grid disruptions • Educational and outreach activities that promote local adaptation planning , such as: o Developing educational resources, trainings and workshops for local jurisdictions and transportation service providers on any of the above listed adaptation planning activities. Packet Page 85 Item 10 8 July 2018 Final Draft Eligible Activities and Expenses Please consult with Caltrans district staff for clarification regarding specific eligible activities or expenses. Example eligible costs include: • Staff time • Consultant time • Conceptual drawings and design • Data and geospatial analysis • Community surveys, meetings, charrettes, and focus groups • Bilingual services for interpreting and/or translation services for meetings • Community/stakeholder advisory groups • Project-specific staffing • Web application development and dashboards Ineligible Activities and Expenses Some activities, tasks, project components, etc. are not eligible under this grant program. If an application has any of the following elements, it will be disqualified. Ineligible activities and expenses include: • Projects without a transportation nexus • Project Initiation Documents • Environmental studies, plans, or documents normally required for project development under the National Environmental Policy Act or the California Environmental Quality Act • Engineering plans and design specification work • Regional Transportation Plans (RTP) or updates to the RTP • Construction projects or capital costs, such as the building of a facility, or maintenance • Purchasing of office furniture or other capital expenditures • Decorations (e.g., for public workshop events) • Acquisition of vehicles or shuttle programs • Organizational membership fees • Unreasonable incentives such as prizes for public participation . The use of incentives is subject to Caltrans approval • Charges passed on to sub-recipient for oversight of awarded grant funds • Other items unrelated to the project Packet Page 86 Item 10 9 July 2018 Final Draft Tools and Resources It is not required that applicants consult the tools and resources below; however, this information is included to provide applicants with existing data sources and support applicants who may want to delve deeper into certain topics. Notable climate adaptation tools and resources include: CalAdapt http://cal-adapt.org/ Cal-Adapt provides a view of how climate change might affect California. Find tools, data, and resources to conduct research, develop adaptation plans and build applications. California Adaptation Planning Guide http://resources.ca.gov/climate/safeguarding/local-action/ The Adaptation Planning Guide provides guidance to support regional and local communities in proactively addressing the unavoidable consequences of climate change. It provides a step -by-step process for local and regional climate vulnerability assessment and adaptation strategy development. Safeguarding California – California’s Climate Adaptation Strategy http://resources.ca.gov/climate/safeguarding/ Safeguarding California is the strategy that organizes state government c limate change adaptation activities. ICARP Clearinghouse http://opr.ca.gov/planning/icarp/ The Adaptation Clearinghouse serves as a centralized source of information that provides the resources necessary to guide decision makers at the state, regional, and local levels when planning for and implementing climate adaptation projects to promote resiliency to climate change in California. Vibrant Communities and Landscapes (Draft) https://www.arb.ca.gov/cc/scopingplan/meetings/091316/vibrant%20communities.pdf This document is intended to consider land use in the context of California’s climate change policy and how the State can support actions, at all levels of government, to facilitate development and conservation patterns that help to achieve the State’s climate goals. Caltrans Vulnerability Assessments (under development) http://www.dot.ca.gov/transplanning/ocp/vulnerability -assessment.html To ensure the resiliency of the State Highway System, Caltrans is conducting vulnerability assessments statewide. The assessments will identify vulnerable segments to climate change and extreme weather events. Addressing Climate Change Adaptation in Regional Transportation Plans http://www.dot.ca.gov/hq/tpp/offices/orip/climate_change/documents/FR3_CA_Climate_Change_Ada ptation_Guide_2013-02-26_.pdf This guide is intended to support planning agencies in incorporating the risks of climate change impacts into their existing decision-making, complementing the broader planning and investment processes that MPOs and RTPAs already manage. Packet Page 87 Item 10 10 July 2018 Final Draft Ocean Protection Council Sea-Level Rise Guidance http://www.opc.ca.gov/webmaster/ftp/pdf/agenda_items/20180314/Item3_Exhibit - A_OPC_SLR_Guidance-rd3.pdf The State of California Sea -Level Rise Guidance reflects advance s in sea-level rise science and addresses the needs of state agencies and local governments as they incorporate sea -level rise into their planning, permitting, and investment decisions. California Coastal Commission Sea Level Rise Policy Guidance https://documents.coastal.ca.gov/assets/slr/guidance/August2015/0_Full_Adopted_Sea_Level_Rise _Policy_Guidance.pdf This guide pro vides an overview of the best available science on sea level rise for California and recommended methodology for addressing sea level rise in Coastal Commission planning and regulatory actions. California Coastal Commission Statewide Sea Level Rise Vulner ability Synthesis https://documents.coastal.ca.gov/assets/climate/slr/vulnerability/FINAL_Statewide_Report.pdf The products showcased in this report will enhance the ability of Coastal Commission and other decision‐makers to make well‐informed decisions about the long‐term planning and management of critical resources along the coast. California Water Action Plan http://resources.ca.gov/docs/california_water_action_plan/Final_California_Water_Action_Plan.pdf A roadmap for the first five years of the state’s journey toward sustainable water management. Cal-Fire http://calfire.ca.gov/index California Department of Conservation – Landslide Hazards http://www.conservation.ca.gov/cgs/geologic_hazards/landslides The California Landslide Inventory is an o ngoing project to make the California Geological Survey landslide information publicly accessible. State Wildlife Action Plan https://www.wildlife.ca.gov/SWAP/Final The State Wildlife Action Plan includes conservation actions that respond to current and future challenges with objectives and goals that are specific, measurable, and time bound. CDFW Regional Conservation Investment Strategies https://www.wildlife.ca.gov/conservation/planning/regional-conservation The new Program encourages a voluntary, non -regulatory regional planning process intended to result in higher-quality conservation outcomes and includes an advance mitigation tool. The Program uses a science-based approach to identify conservation and enhancement opportunities that, if implemented, will help California's declining and vulnerable species by protecting, creating, restoring, and reconnecting habitat and may contribute to species recovery and adaptation to climate c hange and resiliency. CDFW Natural Communities Conservation Plans https://www.wildlife.ca.gov/conservation/planning/nccp A Natural Communities Conservation Plan identifies and provides for the regional protection of plants, animals, and their habitats, while allowing compatible and appropriate economic activity. Packet Page 88 Item 10 11 July 2018 Final Draft General Information and Requirements This section provides a brief overview of the grant application review process : financial, contracting, subcontracting, and legal requirements pertaining to the grant program. The content of this section should be notably considered in the development of grant applications as it lays the foundation for what to expect when applying for these grant funds. Upon award, grantees will receive more specific guidelines including administrative and reporting requirements. Application Review Process and Evaluation Considerations Review Process All applications submitted to the Adaptation Planning Grant Program go through multiple levels of review including reviews by Caltrans district and HQ staff, and State interagency review committees. District staff reviews all applications for content, submission of proper documentation, and overall relationship to regional and local planning efforts. The district rates each application and provides comments to inform the State interagency review committee. The grant review committees evaluate applications for content, completeness, meeting technical requirements, overall relationship to statewide planning efforts, and compliance with state and federal planning requirements. Grant applications that address every aspect of the grant specific objective s will score higher overall. Caltrans has diverse applicants and project types, which makes it difficult to use a one -size fits all scoring rubric. Therefore, applications will be scored based on how well they are able to describe the project, justify need, incorporate the grant specific objectives, and develop a scope of work and project timeline, all in accordance with this grant guide, samples and checklists provided, as applicable and appropria te for the applicant and project type. Once the grant review committees evaluate, rank, and select the best applications for grant funding, final recommendations are presented to Caltrans management and California State Transportation Agency for approval. Performance Considerations Previous Caltrans transportation planning grantee performance will be considered during the evaluation process. Applicants with a history of inadequate performance such as poor grant project management, failure to achieve grant project milestones, untimely invoice submittals, or an overall poor quality of the final grant product may be at a competitive disadvantage in the application review process. Grant funds may not be awarded to prior grant recipients with unresolved past grant performance issues. Additionally, applicants that have an excess ive balance of or consistently relinquish any transportation funds administered by Caltrans Planning and/or have unresolved audit issues or findings will also be at a competitive disadvantage in the application review process. Applicants that have also fa iled to satisfy the required state and federal planning requirements, including submittal and administration of Overall Work Programs (OWPs), RTPs, and Transportation Improvement Programs, may not be awarded grants. Award Terms Caltrans is committed to being an active partner. If awarded a grant, the applicant should include Caltrans district staff when planning both technical advisory and community meetings. In addition, Caltrans district staff will help to ensure that the approved Scope of Work, Pro ject Timeline, and project funding will be maintained throughout the life of the contract . Applicants are also recommended to engage Caltrans district staff throughout the entire grant life, when applicable. If an agency does not demonstrate adequate performance and timely use of funds, Caltrans may take appropriate actions, which can include termination of the grant. Packet Page 89 Item 10 12 July 2018 Final Draft Contracting with Caltrans and Project Timelines Project Start Dates Grant awards are anticipated for release in spring of 2019. All awarded grant funds must be programmed during the State’s FY 2019-20. The project start date depends on the metho d of contracting with Caltrans. For MPOs and RTPAs with a current Master Fund Transfer Agreement (MFTA), work may begin as early as July 2019. For awarded grantees that do not have a current MFTA with the Office of Regional Planning (i.e. cities, counties, transit agencies, Tribal Governments), Caltrans will contract directly with the primary grant recipients through the Restricted Grant Agreement (RGA) process. For grant recipients that undergo the RGA contracting process, work may begin as early as October 2019, assuming the grantee has received a fully executed contract and has been notified by Caltrans district staff to begin work. It is important for applicants to reflect the estimated project start date in the Scope of Work an d Project Timeline. Project Timeline constraints for both methods of contracting with Caltrans are provided below. Awardees are required to submit all supporting materials and a signed agreement or risk forfeiting the grant award. Restricted Grant Agreement Project Timeline Consider these dates when developing the Scope of Work and Project Timeline: October 2019 Anticipated start date February 28, 2022 • Contract expires (no time extensions will be granted) • Reimbursable work must be completed April 28, 2022 • All final invoices must be submitted to Caltrans for approval and reimbursement. This allows Caltrans sufficient time to comply with the State Controller’s Office payment requirements. Master Fund Transfer Agreement Project Timeline (MPOs/RTPAs Only) Consider these dates when developing the Scope of Work and Project Timeline: July 2019 • Anticipated start date April 28, 2022 (no time extensions will be granted) • All final invoices and final products must be submitted to Caltrans for approval and reimbursement. This allows Caltrans sufficient time to comply with the State Controller’s Office payment requirements. Contract Options for Native American Tribal Governments Native American Tribal Governments have the following options for contracting w ith Caltrans: (1) Contracting with Tribes Directly – The authority Caltrans uses to contract with tribes directly comes from the California Streets and Highways Code Section 94, and is extremely limited. Caltrans Legal requires the tribes to provide a limite d waiver of sovereign immunity. However, Caltrans’ Native American Liaison Branch ensures that any waiver is very specifically limited in scope and in time to only apply to the contract itself (and to any possible audits). In an effort to streamline the RGA contracting process, there is a n RGA boilerplate template available upon request. Packet Page 90 Item 10 13 July 2018 Final Draft (2) Partnering with a Regional Agency – Another mechanism for contracting with Caltrans is to collaborate with an MPO or RTPA. Caltrans can pass through gra nt funding to tribes for planning projects where options or time are limited . This option uses the three-part contract, MFTA/OWP/OWPA, and is usually the quickest option to allow planning projects to get started. (3) Transferring Funds Pursuant to 23 U.S.C. 202(a)(9) – Section 202(a)(9) of title 23, United States Code encourages cooperation between States and Tribes by allowing any funds received from a State, county, or local government to be credited to appropriations available for the Tribal Transportation Program (TTP). One potential source of such funding is funds apportioned or allocated to a State under title 23. Section 104(f)(3) allows the Secretary of Transportation to, at the request of a State, transfer among States, or to the FHWA, funds that have been so apportioned or allocated. This provision, used in conjunction with the authority under 23 U.S.C. 209(a)(9), allows State funds to be transferred to FHWA, which in turn would provide the funds to the specified Tribe. Please view this document for more information. Caltrans has successfully used the federal Section 202(a)(9) process to transfer grant funds to a Native American Tribal Government. In order to use this transfer process, an agreement would need to be in place with the Federal Highway Administration (FHWA) or Bureau of Indian Affairs, the Tribe, and the State that clearly identifies the project and the roles and re sponsibilities of all parties. Each interagency fund transfer includes 1) a fund transfer template and 2) an addendum lining out the specifics of the terms. This option requires involvement and approval by Caltrans Legal and the funds must be used for the intended purpose of the awarded Adaptation Planning grant. Grant Project Administration Requirements Overall Work Program (for MPOs/RTPAs Only) All MPOs and RTPAs must have the entire grant award and local match programmed in the FY 2019-20 OWP no later than November 1, 2019. Approved grant projects must be identified as individual Work Elements in the current OWP and in future OWPs until the project is completed. Reporting For MPOs and RTPAs, the progress of each awarded grant project must be included as part of the OWP Quarterly Progress and Expenditure Report. If this method of reporting is not adequately satisfied, Caltrans staff will require separate quarterly reports f or each awarded grant project. All other primary grant recipients shall submit progress reports every quarter for each awarded grant project. Caltrans district staff will provide the brief report form and due dates. Because this is the first State Adaptation Planning grant of its kind, Caltrans and the Governor’s Office of Planning and Research are looking to identify and share the lessons learned from this grant opportunity to inform other existing or new state grant programs. To this end, all primary grant recipients will prepare a short write -up to be included in the ICARP Clearinghouse (described on page 8), which was developed to share information, resources, and case studies with local and regional jurisdictions. At a minimum, grantees will be asked to prepare a case study describing the application and proposed project and a case study on the completed project or plan, including a PowerPoint presentation deck and GIS files of maps whe n applicable. Case studies should emphasize processes or results that can be adapted or replicated for use in multiple jurisdictions or in various parts of the state . These studies will be used to develop guidance for adaptation work in Packet Page 91 Item 10 14 July 2018 Final Draft the future. Caltrans will share progress reports with the ICARP Technical Advisory Council at regular intervals. Grantees are also invited and encouraged to request technical assistance support from the ICARP program, including bringing key challenges or lessons learned to the Technical Advisory Council for their input. Caltrans staff will provide grant recipients with ICARP contact info upon request. Final Product All final reports funded through the Adaptation Planning Grant Program shall credit Caltrans’ financial participation on the cover or title page. An electronic c opy of all final reports shall be forwarded to the Caltrans district office responsible for the administration and oversight of the grant. Ownership Any technologies or inventions that may result from the use of these grants are in the public domain and may not be copyrighted, sold, or used exclusively by any business, organization, or agency. Caltrans reserves a royalty-free, non-exclusive, and irrevocable license to reproduce, publish, or otherwise use and to authorize others to use for public purposes . Third Party Contracts The agreements between a grantee and a sub -recipient, consultant, or sub-consultant are often referred to as “third party contracts.” An eligible sub -applicant will be identified by an eligible applicant on the onset of the application. If a grantee or a sub-recipient is going to hire a consultant to perform work during the project, then proper procurement procedures must always be used. Grantees may use their agency’s procurement procedures as long as they comply with the Local Assistance Procedures Manual, Chapter 10. In addition, work can only be contracted if it has been stated in the applicant’s Scope of Work and Project Timeline. A grantee is fully responsible for all work performed by its sub-recipient, consultant, or sub-consultant. Caltrans solely enters into a contract directly with the grantee; therefore, the grantee is responsible to ensure that all third parties adhere to the same provisions included in the contractual agreement between Caltrans and the grantee. All government funded consultant procurement transactions must be conducted using a fair and competitive procurement process that is consistent with the Local Assistance Procedures Manual, Chapter 10. All documentation of third party contract procurements must be retained and c opies of all agreements must be submitted to Caltrans. For more information on third party contracting, visit the following link: Local Assistance Procedures Manual: http://www.dot.ca.gov/hq/LocalPrograms/lam/lapm.htm Non-Discrimination Requirements Title VI Non-Discrimination Requirement Title VI of the U.S. Civil Rights Act prohibits discrimination on the basis of race, color, or national origin in programs or activities receiving federal financial assistance. A similar prohibition applies to recipients of state funds under California Go vernment Code section 11135, which prohibits discrimination on the basis of race, color or national origin, as well as ethnic group identification, Packet Page 92 Item 10 15 July 2018 Final Draft religion, age, sex, sexual orientation, genet ic information, or disability. Specifically, Title VI provides the following: No person in the United States shall, on the ground of race, color, national origin, religion, sex, age, or disability be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving financial assistance from the Federal government. The FHWA and the Federal Transit Administration each have requirements that recipients of Metropolitan Planning federal funds must demonstrate continued compliance with Ti tle VI. Compliance with Title VI includes conducting meetings in a fair and reasonable manner that are open to all members of a community. Compliance reflects not only the law, but is also a good policy that builds the kind of trust and information shari ng upon which successful planning is done. Even where a city or county may not be receiving federal funding for transportation, the Civil Rights Restoration Act of 1987 also obligates that a city or county comply with Title VI, if it receives any other federal funding for any program. Disadvantaged Business Enterprises The Road Repair and Accountability Act of 2017 requires Caltrans to develop a plan to increase, up to 100 percent, the dollar value of contracts/procurements awarded to Small Businesses, Disadvantaged Business Enterprises (DBEs), and Disabled Veteran Business Enterprises (DVBEs). Caltrans is required to have this plan by January 1, 2020. Until then, successful grant applicants are expected to market contracting opportunities to all small businesses, including DBEs and DVBEs. For details about DBE requirements, visit the Office of Regional Planning DBE website at: http://www.dot.ca.gov/hq/tpp/offices/orip/DBE/DBE.html . Invoicing and Financial Requirements Requests for Reimbursements Grant payments are made only as reimbursements. Invoices or Requests for Reimbursements (RFR) need to be submitted no more frequently than monthly or at a minimum quarterly. Grantees must pay sub-recipients and subcontractors prior to submitting a RFR to Caltrans. A one-time, lump sum RFR for the entire grant is not allowed. Local match (cash and third party in-kind contributions) must be expended on a proportional basis coinciding with each grant Work Element (MPOs/RTPAs only) and/or tasks in each RFR. The proportional spread of local match for each task and subtask must be clearly identified in the Project Timeline. The minimum required local match (i.e., 11.47 percent) must be rendered during the invoicing period to which the matching requirement applies. The minimum required local match must also be satisfied with each RFR. Local Match Contribution All grants require a local match. Revenue sources for a local match can include local sales tax, special bond measures, private donations, private foundations, etc. The Adaptation Planning grants require the applicant to provide a minimum 11.47 percent local match —any source of funds may be used as long as the proposed grant work is an eligible activity for the local match fund source . The minimum local match is a percentage of the total project cost (i.e., minimum local match amount plus the grant amount) and is represented on the Project Timeline at the task and Packet Page 93 Item 10 16 July 2018 Final Draft subtask-level. The local match can be all cash, all third party in-kind contributions, or a combination of the two. Staff time from the primary applicant counts as cash match. Table 3: Illustrates the local match as a percentage of the Total Project Cost: Grant Program Grant Request Local Match Total Project Cost Adaptation Planning 88.53% Example: $300,000 11.47% Example: $38,868.18 100% Example: $338,868.18 To better assist applicants, the Local Match Calculator can be found at: http://www.dot.ca.gov/hq/tpp/offices/orip/Grants/2015/Match_Calculator.xlsx Third Party In-Kind Contributions Third party in-kind contributions are typically goods and services donated from outside the primary grantee’s agency. Examples of third party in -kind contributions include donated printing, facilities, interpreters, equipment, advertising, time and effort, staff time, and other goods and services. The value of third party in-kind contributions must be directly benefiting and specifically identifiable to the project. Third party in-kind contribution information must be identified on the Grant Application Cover Sheet, the Project Timeline, and the project specific Work Element in the OWP (if applicable). If third party in-kind contributions are used to satisfy the local match requirements, a third party in-kind valuation plan must also be submitted to Caltrans for approval as a condition of grant acceptance. The third party in-kind valuation plan is an itemized breakdown by task and serves as documentation for the goods and/or services to be rendered. The Third Party In -Kind Valuation Plan Checklist and Sample are provided on Page 34. Accounting Requirements Grantees are required to maintain an accounting and record system that properly accumulates and segregates incurred project costs and matching funds by line item. The accounting system of the grantee, including its sub -applicants and subcontractors, must conform to Generally Accepted Accounting Principles that enable the determination of incurred costs at interim points of completion and provides support for reimbursement payment vouchers or invoices sent to or paid by Caltrans. Allowable project costs must comply with 2 Code of Federal Regulations (CFR), Part 200. It is the grantee’s responsibility, in conjunction with Caltrans district staff, to monitor work and expenses to ensure the project is completed according to the contracted Scope of Work and P roject Timeline. Grantees must monitor work and costs to ensure invoices are submitted on a regular and timely basis (monthly or quarterly as milestones are completed). Grantees must communicate with their local Caltrans district staff to ensure any issues are addressed early during the project period. Indirect and Direct Costs Indirect costs require an Indirect Cost Allocation Plan (ICAP). For example, reproduction costs, computer rental and office supplies are considered indirect costs. However, if these costs are tied to a specific task or activity, they are considered direct costs. If a grantee, including sub -recipients and third party contractors/consultants, are seeking reimbursement of indirect costs, they must annually submit an ICAP or an Indirect Cost Rate Proposal (ICRP) to Caltrans Audits and Investigations for review and approval prior to Packet Page 94 Item 10 17 July 2018 Final Draft reimbursement. An ICAP or ICRP must be prepared and submitted in accordance with 2 CFR, Part 200. For more information visit the following website: Indirect Cost Allocation Plan : http://www.dot.ca.gov/hq/audits/icap_icrp.html Due to the competitive nature of the grant award process, applications must include any indirect costs in the Project Timeline. Indirect costs can only be reimbursed if they are identified in the Project Timeline submitted with the initial application. Travel Expenses Grantees may be eligible to claim travel expenses if they have been approved in the Scope of Work and Project Timeline. Travel expenses and per diem rates are not to exceed the rate specified by the California Department of Personnel Admin istration for similar employees (i.e. non -represented employees). For more information on eligible travel expenses, visit the following website: Caltrans Travel Guide: http://www.dot.ca.gov/hq/asc/travel/ Pre-Award Audit The Adaptation Planning grants are available in amounts up to $1 million. However, any awarded grant in excess of $250,000 may require a pre -award audit. The pre-award audit is to ensure that recipients of State funds maintain adequate financial management systems prior to receiving the funds. Pre-award audits may be required of new grantees, agencies that have not recently been audited, agencies that have undergone prior audits with significa nt weaknesses or deficiencies in their financial management systems, or those determined to be a higher risk to Caltrans. If a pre-award audit is needed, the local Caltrans district office will contact the grantee to facilitate the appropriate action. Application Preparation The Adaptation Planning Grant Program is highly competitive. This section provides applicants with supplemental information as well as details on required documents that must accompany an application at the time of submittal. All applicants are strongly encouraged to adhere to these requirements in order to be competitive during the application evaluation process. Early Coordination with Primary Applicants Sub-applicants are encouraged to work far in advance of the application deadline with the appropriate primary applicant to coordinate application development. It is also beneficial for sub-applicants to be informed of the appropriate primary applicant process and schedule, as they may differ slightly from those of Caltrans. RTPAs residing within MPO boundaries should also coordinate application development with the MPO, as it is critical to ensure that proposed studies align with the RTP/SCS for the entire MPO region and do not duplicate efforts being applied for or already awarded to the MPO. Packet Page 95 Item 10 18 July 2018 Final Draft Technical Assistance Caltrans district office staff (see Page 38) is available during the application period to discuss potential projects, answer questions, and help interested groups complete their applications. For questions specific to the Grant Application Guide, applicants are also welcomed to contact the Caltrans Headquarters lead staff: Julia Biggar Julia.Biggar@dot.ca.gov (916) 654-6344 Ali Doerr Alexandra.Doerr@dot.ca.gov (916) 653-9248 Tips and Pointers for Writing a Successful Grant Application General Tips Consult with your district representative for technical assistance before the application deadline. Use the Samples and Checklists provided for the Application, Scope of Work, and Project Timeline. Include Caltrans as an active partner in the study. Provide letters of support and project area photographs to enhance the application. Project Description Concisely describe the project in less than 100 words. Explain “What parties are involved, the proposed major milestones, the plan/study start/end dates, the general project area boundaries, and why the project is necessary.” Project Justification Clearly define and explain the transportation problem or deficiency that the project will attempt to address. Why is it critical to address the problem now? Make the case for a critical need that the project will address and support it with verifiable data, if available. Grant Specific Objectives Clearly demonstrate how the project promotes climate change adaptation planning on the California transportation system. Also demonstrate how the project aligns with the Grant Specific Objectives. Project Management Scope of Work: Identify the project area demographics, public participation, and project implementation. Project Timeline: Identify the current indirect cost rate if indirect costs will be sought for reimbursement. If FY 2019-2020 indirect cost rates are not available, the rate will be an estimate based on the currently approved rate. Keep administrative project tasks below five percent of the grant amount requested . Ensure the correct minimum local match amount, calculated as a percentage of the total project cost (grant plus local match), is provided. Each task and sub-task must also have the minimum local match. Packet Page 96 Item 10 19 July 2018 Final Draft Application Submittal Instructions All grant application packages are required to be submitted via e-mail. An agency may only submit one application package per e -mail. The Caltrans district contact must be copied (refer to the District Contact List on Page 38 and the subject line needs to identify the district number, grant program, and brief project title (e.g., D1, SC, City of Can Do Planning Project). The required items outlined on the Grant Application Checklist on Page 19 must be attached to the e-mail as separate documents. Applicants will receive an email reply by 5pm on (DAY), October XX, to confirm receipt of applications submitted. Please submit your application package to: Adaptation.Planning.Grants@dot.ca.gov APPLICATIONS MUST BE SUBMITTED VIA E-MAIL NO LATER THAN FRIDAY, NOVEMBER 3, 2018 BY 5:00 PM HARD COPIES WILL NOT BE ACCEPTED AND LATE APPLICATIONS WILL NOT BE REVIEWED The Grant Application Guide and application form and required templates are available at the following website: http://www.dot.ca.gov/hq/tpp/grants.html Caltrans anticipated award announcements: May 2019 Download the latest version of Adobe Reader DC ® to complete the application form. This version of Adobe is available free of charge. Caltrans district staff is available during the application period to discuss potential projects, answer questions, and help interested groups complete their applications. Refer to the District Contact List on Page 38 for contact information. Packet Page 97 Item 10 20 July 2018 Final Draft Grant Application Checklist The following documents are required and must be submitted via e -mail as separate attachments. Please do not combine documents into a single attachment. Please keep file names brief, as files become corrupted when the names are too long. Refer to the Grant Application Guide for additional information and/or samples. Failure to include any of the required documents will result in a reduced application score. Required Application Documents (Required formats/templates are provided online at: http://www.dot.ca.gov/hq/tpp/grants.html)  Application (Complete and submit the PDF form in the exact format provided online at http://www.dot.ca.gov/hq/tpp/grants.html - Scanned or hard copies of the application will not be accepted)  Application Signature Page (print, sign, and scan this page in PDF format)  Scope of Work (Microsoft Word format) – see pages 27 – 31  Project Timeline (Microsoft Excel format) – see pages 32 – 33  Third Party In-Kind Valuation Plan (if applicable) – see page 34  Map of Project Area (a map of the project area is required to clearly identify the boundaries of the project area and to provide context for the project ) Supplemental Information: The following documents are not required, but enhance the overall application and typically result in a more competitive application during the evaluation process.  Graphics of Project Area (when applicable) o Clearly labeled photographs, maps, planning diagrams, land use or design illustrations, or other relevant graphic representations of the proposed project area convey existing conditions and help to further explain the need for the grant. Please ensure that graphics include a text description to provide context.  Letter(s) of Support o If submitted, letters of support must be included with the application package. Letters received separate from the application package may not be considered. The letters should be addressed to the applicant. Such letters can come from community-based organizations, local governments, Native American Tribal governments, service agencies, and elected officials. Packet Page 98 Item 10 21 July 2018 Final Draft Grant Application Preview Pages 20 – 26 provide a preview of the Adaptation Planning Grant Application form for FY 2019-20. Applicants can access the grant application form document at http://www.dot.ca.gov/hq/tpp/grants.html. APPLICATION PREVIEW CALTRANS ADAPTATION PLANNING GRANT APPLICATION FY 2019-20 PROJECT TITLE PROJECT LOCATION (city and county) APPLICANT SUB-APPLICANT SUB-APPLICANT Organization Mailing Address City Zip Code Executive Director/designee and title Mr. Ms. Mrs. Mr. Ms. Mrs. Mr. Ms. Mrs. E-mail Address Contact Person and title Mr. Ms. Mrs. Mr. Ms. Mrs. Mr. Ms. Mrs. Contact E-mail Address Phone Number FUNDING INFORMATION Use the Match Calculator to complete this section. Match Calculator Grant Funds Requested Local Match - Cash Local Match - In-Kind Total Project Cost $ $ $ $ Specific Source of Local Match and Name Provider (i.e., local transportation funds, local sales tax, special bond measures, etc.) Packet Page 99 Item 10 22 July 2018 Final Draft APPLICATION PREVIEW CALTRANS ADAPTATION PLANNING GRANT APPLICATION FY 2018-19 LEGISLATIVE INFORMATION* Please list the legislative members in the project area. Attach additional pages if necessary. State Senator(s) Assembly Member(s) Name(s) District Name(s) District *Use the following link to determine the legislators: http://findyourrep.legislature.ca.gov/ (search by address) Packet Page 100 Item 10 23 July 2018 Final Draft APPLICATION PREVIEW CALTRANS ADAPTATION PLANNING GRANT APPLICATION FY 2019-20 1. Project Description (100 words maximum): Briefly summarize project in a clear and concise manner, including major deliverables, parties involved, and any connections to local plans or policies and Grant Program Considerations (Grant Application Guide Pages 3-5): o Executive Order S-13-08 o Executive Order B-30-15 o California Transportation Plan (CTP) 2040 o Regional Transportation Plan Guidelines o 2017 General Plan Guidelines o Integrated Climate Adaptation and Resiliency Program (ICARP) o Addressing Disadvantaged Communities Packet Page 101 Item 10 24 July 2018 Final Draft APPLICATION PREVIEW CALTRANS ADAPTATION PLANNING GRANT APPLICATION FY 2019-20 2. Project Justification: Describe the problems or deficiencies the project is attempting to address, as well as how the project will address the identified problems or deficiencies. Additionally, list the ramifications of not funding this project. Packet Page 102 Item 10 25 July 2018 Final Draft APPLICATION PREVIEW CALTRANS ADAPTATION PLANNING GRANT APPLICATION FY 2019-20 A. Applicants should demonstrate how the proposed effort would integrate grant program considerations: • Executive Order S-13-08 • Executive Order B-30-15 • California Transportation Plan (CTP) 2040 • Regional Transportation Plan Guidelines • General Plan Guidelines • Integrated Climate Adaptation and Resiliency Program (ICARP) • Addressing Disadvantaged Communities B. Applicants must demonstrate how the proposed effort will accomplish the following: • Demonstrate on-going collaboration and partnerships between sectors and jurisdictions, across levels of government at a regional scale • Identification of co-benefits of adaptation work, such as benefits to public health , natural ecosystems, air quality, social equity, the economy , or reductions in greenhouse gas emissions C. Applicants should demonstrate how the proposed effort will accomplish one or more of the following: • Identify system-wide climate change impact risks to multimodal transportation infrastructure in the project area • Identify specific transportation infrastructure vulnerabilities to climate change impacts • Identify adaptation strategies and specific actions to remedy identified climate related vulnerabilities • Advance the planning of specific climate adaptation projects, such as developing a cost estimate or conceptual design • Include economic analysis and/or cost -benefit analysis of identified adaptation strategy or strategies D. Competitive applications should include one or more of the following: • Identification of and benefit to disadvantaged/and or vulnerable communities, including transit-dependent populations (when applicable) • Demonstration of collaboration and partnerships with diverse external stakeholders such as businesses, non-governmental agencies, community-based organizations, and community residents 3. Grant Specific Objective: Explain how the proposed project addresses the grant specific objectives of the Adaptation Planning Grant Program. Packet Page 103 Item 10 26 July 2018 Final Draft APPLICATION PREVIEW CALTRANS ADAPTATION PLANNING GRANT APPLICATION FY 2019-20 4. Project Management (See Scope of Work and Project Timeline samples and checklists for requirements. (Grant Application Guide, Pages 27-33), also online at: http://www.dot.ca.gov/hq/tpp/grants.html. A. Scope of Work in required Microsoft Word format B. Project Timeline in required Microsoft Excel format Packet Page 104 Item 10 27 July 2018 Final Draft APPLICATION PREVIEW CALTRANS ADAPTATION PLANNING GRANT APPLICATION FY 2019-20 Application Signature Page If selected for funding, the information contained in this application will become the foundation of the contract with Caltrans. To the best of my knowledge, all information contained in this application is true and correct. If awarded a grant with Caltrans, I agree that I will adhere to the program guidelines. Signature of Authorized Official (Applicant) Print Name Title Date Signature of Authorized Official (Sub-Applicant) Print Name Title Date Signature of Authorized Official (Sub-Applicant) Print Name Title Date Packet Page 105 Item 10 28 July 2018 Final Draft Scope of Work Requirements Scope of Work Checklist The scope of work is the official description of the work that is to be completed during the contract. The scope of work must be consistent with the project timeline . Applications with missing components will be at a competitive disadvantage. Please use this checklist to make sure your scope of work is complete. The scope of work must:  Use the FY 2019-20 template provided and in Microsoft Word format  List all tasks and sub-tasks using the same title as stated in the project timeline  Include task and sub-task numbers in accurate and proper sequencing; consistent with the project timeline  Include the activities discussed in the grant application  List the responsible party for each task and subtask and ensure that it is consistent with the project timeline (i.e. applicant , sub-applicant, or consultant)  Include a thorough Introduction to describe the project and project area demographics, including a description of the vulnerable populations involved with the project, if applicable  Include a thorough and accurate narrative description of each task and sub-task  Include a task for a kick-off meeting with Caltrans at the start of the grant  Include a task for completing two case studies that will be included in OPR’s Adaptation Clearinghouse  Include a task for procurement of consultants, if consultants are needed  Include a task for invoicing  Include a task for quarterly reporting to Caltrans  Include detailed public participation and services to diverse communities  Include project implementation/next steps  List the project deliverable for each task in a table following each task and ensure that it is consistent with the project timeline  Exclude environmental, complex design, engineering work, and other ineligible activities Packet Page 106 Item 10 29 July 2018 Final Draft Sample Scope of Work City of “Can Do” Adaptation Plan The City of “Can Do” has submitted a Adaptation Plan which will provide a conceptual climate change adaptation planning foundation for integration into the City’s General Plan (per the requirements of 379). The Plan will develop a framework for addressing known existing climate change vulnerabilities of the community. The City intends to gather public input through interactive community workshops which will be the driving factor of the planning process, and will provide co - benefits including outreach and discussion with disadvantaged commun ities. The City’s Adaptation Plan will contain planning information and projections, recommended strategies, and create conceptual designs. It is the City’s intent that once this plan is complete, it will lead to implementation and development of adaptation projects. The scope of work shown below reflects the anticipated process and deliverables for the City ’s Adaptation Plan. RESPONSIBLE PARTIES The City, with the assistance of a consulting firm, will perform this work. The City has not yet selected a consulting firm and the proper procurement procedures will be used through a competitive RFP process. City staff anticipates these figures will not differ substantially and will not exceed the grant request amount. OVERALL PROJECT OBJECTIVES • Develop and analyze climate change vulnerability maps to identify at -risk transportation assets, resources, and transit-dependent populations within the city boundary • Identify interdependencies between the transportation system and other infrastructure and community services to highlight vulnerable areas with greatest possible con sequences if damaged/impacted • Develop strategies to increase both physical and social resilience of the community’s transportation system to climate change • Improve early warning systems for extreme weather events • Facilitate meetings between community residents, infrastructure owners/operators, and businesses to determine adaptation priorities, implementation timelines, and possible funding sources to increase the resilien ce of the transportation system • Develop conceptual designs for green adaptation solutions for transportation infrastructure 1. Project Initiation Task 1.1: Project Kick-off Meeting • The City will hold a kick-off meeting with Caltrans staff to discuss grant procedures and project expectations including invoicing, quarterly reporting, and all other relevant project information. Meeting summary will be documented. • Responsible Party: The City Packet Page 107 Item 10 30 July 2018 Final Draft Task 1.2: Staff Coordination • Monthly face-to-face project team meetings with consu ltants to ensure good communication on upcoming tasks and to make sure the project remains on time and within budget . Caltrans staff will be invited to the project team meetings. • Responsible Party: The City Task 1.3: RFP for Consultant Services • Complete an RFP process for selection of a consultant using the proper procurement procedures. • Responsible Party: The City Task 1.4: Identify Existing Conditions • Gather existing vulnerabilities and background data by identifying opportunities and constraints as well as standards that should be used to guide preparation of the plan such as climate change projections (precipitation, sea level rise and storm surge, wildfires, and temperature), asset locations and information, existing and planned land uses, population characteristics, and travel projections within the City. • Inventory and evaluate vulnerable transportation infrastructure, resources, and transit-dependent communities. • Responsible Party: Consultant Task Deliverable 1.1 Meeting Notes 1.2 Monthly Meetings Notes 1.3 Copy of Procurement Procedures and Executed Consultant Contract 1.4 Existing Conditions Report 2. Public Outreach Note: All meetings will be publicly noticed to ensure maximum attendance . All public notices will be in English and Spanish. Spanish translators and sign language interpreters will be present at all workshops. Task 2.1: Community Workshop #1 • Workshop. This workshop will introduce the project to the public, define project parameters, inform the community of project opportunities and constraints, and solicit opinions from the community to shape Task 3.1, Develop Adaptation Concept. • Responsible Party: Consultant Task 2.2: Community Workshop #2 • An interactive workshop that will use clicker technology, modeling tools, and maps to present adaptation strategies and project alternatives . Community will decide on preferred alternatives, where specific adaptation plans are possible. Continue to solicit feedback from the community to shape Task 3.3, Draft. • Responsible Party: Consultant Packet Page 108 Item 10 31 July 2018 Final Draft Task 2.3: Community Workshop #3 • Present Draft Concept and Report and continue to solicit feedback for public comments to shape Task 3.3, Draft Adaptation Plan and Task 3.6, Final Adaptation Plan. • Responsible Party: Consultant Task Deliverable 2.1 PowerPoint Presentation, Workshop Summary, Photos 2.2 PowerPoint Presentation, Workshop Summary, Photos 2.3 PowerPoint Presentation, Workshop Summary, Photos 3. Adaptation Plan Task 3.1: Develop Adaptation Concept • Based on the existing conditions report and the community input from Workshop #1, priorities for analysis and concept adaptation strategies will be developed . Conceptual adaptation designs will incorporate natural infrastructure planning and will include plans, sketches, and photos. • Responsible Party: Consultant Task 3.2: Develop Conceptual Design Concept Alternatives • A sample project with up to three adaptation alternatives will be developed. Illustrations will be made in plan view, as street cross sections, and a s sketches. A model simulation will be developed for each alternative . The alternatives will be prepared and presented at Community Workshop #2. • Responsible Party: Consultant Task 3.3: Draft Adaptation Plan • Based on the adaptation priorities and strategies agreed upon in Workshop #2, a draft report will be prepared. The draft report will be presented at Workshop #3 for public comment. • Responsible Party: Consultant Task 3.4: Identify Potential Funding Sources • Review and identify potential fu nding sources for future implementation of priority projects. • Responsible Party: Consultant Task 3.5: Joint Planning/Emergency Management Advisory Commission Meeting • Coordinate a joint session among the three commissions to review the draft report and adaptation strategies. Solicit feedback, respond to any questions, and resolve any critical issues. • Responsible Party: The City/Consultant Packet Page 109 Item 10 32 July 2018 Final Draft Task 3.6: Final Adaptation Plan • Complete the final report that addresses the comments given from Workshop #3 and the Joint Commission Meeting. Four hard-copies and four electronic copies of the final report will be submitted to Caltrans. Credit of the financial contribution of the grant program will be credited on the cover of the report. • Responsible Party: Consultant Task 3.7: Present Plan to City Council • Present the final Adaptation Plan at the City Council meeting . Resolve any critical issues. Action taken by City Council to Adopt/Accept/ Reject final City of Can Do Complete Street Plan. • Responsible Party: The City/Consultant Task Deliverable 3.1 Sketches, illustrations 3.2 Sketches, illustrations 3.3 Draft Report 3.4 Funding Source Report 3.5 PowerPoint Presentation, Workshop Summary, Photos 3.6 Final Report 3.7 Meeting Notes 4. Fiscal Management Task 4.1: Invoicing • Submit complete invoice packages to Caltrans district staff based on milestone completion, at least quarterly, but no more frequently than monthly. • Responsible Party: The City Task 4.2: Quarterly Reports • Submit quarterly reports to Caltrans district staff providing a summary of project progress and grant/local match expenditures. • Responsible Party: The City Task Deliverable 4.1 Invoice Packages 4.2 Quarterly Reports Packet Page 110 Item 10 33 July 2018 Final Draft Project Timeline Requirements Project Timeline Checklist The project timeline is the official documentation of the budget and time frame of the project. The project timeline must be consistent with the scope of work. Applications with missing components will be at a competitive disadvantage. The project timeline must:  Use the FY 2019-20 template provided (do not alter the template) and submitted in Microsoft Excel format.  List all tasks and sub-tasks with the same title as stated in the scope of work.  Include task and sub-task numbers in proper sequencing, consistent with the scope of work.  Include a task for a kick-off meeting with Caltrans at the start of the grant.  Include a task for procurement of consultants, if consultants are needed.  Include a task for quarterly reporting to Caltrans.  Include two tasks for OPR Adaptation Clearinghouse Case Studies  Include a task for invoicing.  List the responsible party for each task and sub -task, and ensure that it is consistent with the scope of work (i.e. applicant, sub -applicant, or consultant).  Complete all budget columns as appropriate: Total Cost, Grant Amount, Local Cash Match, and if applicable, Local In -Kind Match.  State a realistic total cost for each task based on the work that will be completed. Project management/administration costs should not exceed 5 percent of the grant amount requested.  Include a proportional spread of local match amongst each task. The match amount must be at least the minimum amount required by the grant program.  Identify the indirect cost rate if indirect cost s will be reimbursed.  Include a best estimate of the amount of time needed to complete each task.  Start the timeframe at the beginning of the grant period (July 2019 for MPO/RTPAs; October 2019 for non-MPO/RTPAs).  Extend the timeframe all the way to the end of the grant period. (Project end dates differ based on applicant type. See Page s 11-12 for details)  List the deliverable for each task as stated in the scope of work. Packet Page 111 Item 10 34 July 2018 Final Draft Sample Project Timeline Packet Page 112 Item 10 35 July 2018 Final Draft Third Party In-Kind Valuation Plan Requirements Third Party In-Kind Valuation Plan Checklist The third party in-kind valuation plan is an itemized breakdown by task and sub -task and serves as documentation for the goods and/or services to be donated. The third party in-kind valuation plan must be consistent with the information provided on the Project Timeline and Grant Application Cover Sheet. This document is required upon grant award as a condition of grant acceptance. The third party in-kind valuation plan must:  Use the FY 2018-19 template provided (do not alter the format).  Name the third party in-kind local match provider.  Describe how the third party in-kind local match will be tracked and documented for accounting purposes.  Describe the fair market value of third party in -kind contributions and how the values were determined.  Include an itemized breakdown by task and sub -task consistent with the project timeline.  Identify consistent in -kind local match amount reflected on the grant application cover sheet. Sample Third Party In-Kind Valuation Plan Packet Page 113 Item 10 36 July 2018 Final Draft Local Resolution Requirements Local Resolution Checklist (Not Applicable to MPO/RTPAs) A local resolution is NOT required at the grant application stage; however, it is required upon award, as a condition of grant acceptance. The local resolution must:  State the title of the project  State the job title of the person authorized to enter into a contract with Caltrans on behalf of the applicant  NOT be more than a year old or will not be accepted  Include signature by the governing board of the grant applicant Packet Page 114 Item 10 37 July 2018 Final Draft Sample Local Resolution CIT Y OF CAN DO RESOLUT ION NO. 009-2012 RESOLUT ION OF T HE BOARD OF DIRECTORS OF THE CITY OF CAN DO AUT HORIZING T HE EXECUT IVE DIRECTOR TO EXECUTE AGREEMENTS WITH THE CAL IFORNIA DEPART MENT OF TRANSPORTATION FOR THE CITY OF CAN DO COMPLETE STREET PLAN WHEREAS, the Board of Directors of the Ci ty of Can Do is eli gible to receive federal and/or State funding for certain transportation planning related plans, through the California Department of Transportation WHEREAS, a Restricted Grant Agreement is needed to be executed with the California Department of Transportation before such funds can be claimed through t h e Tr ansportati on Pl anning Grant Programs WHEREAS, the City of Can Do wishes to delegate authorization to execute these agreements and any amendments thereto; NOW, T HEREFORE, BE IT RESOLVED by t he Board of Directors of the City of Can Do, authorize the Executive Di rector, or designee, to execute all Restricted Grant Agreements and any amendments thereto with the California Department of Transportation. AP PROVED AND PASSED this 4th day of August, 2015. John Doe, Chair ATTEST: Eileen W right, Executive Di rector Packet Page 115 Item 10 38 July 2018 Final Draft Caltrans District and Regional Agency Boundaries Map Packet Page 116 Item 10 39 July 2018 Final Draft Caltrans District Contact List DISTRICT GRANT CONTACT ADAPTATION CONTACT MPO/RTPA DISTRICT 1 1656 Union Street P.O. Box 3700 Eureka, CA 95502 Mendocino and Lake Counties Rex Jackman (707) 445-6412 Email: rex.jackman@dot.ca.gov Del Norte and Humboldt Counties Kevin Tucker (707) 441-5770 Email: kevin.tucker@dot.ca.gov Kevin Tucker (707) 441-5770 kevin.tucker@dot.ca.gov • Del Norte LTC • Humboldt CAOG • Lake CCAPC • Mendocino COG DISTRICT 2 1657 Riverside Drive Redding, CA 96001 Kathy Grah (530) 229-0517 Email: kathy.grah@dot.ca.gov Kathy Grah (530) 229-0517 Kathy.grah@dot.ca.gov • Lassen CTC • Tehama CTC • Modoc LTC • Trinity CTC • Plumas CTC • Siskiyou CLTC • Shasta RTA DISTRICT 3 703 B Street Marysville, CA 95901 El Dorado, Sacramento, and Yolo Counties Jeffery Morneau (530) 741-4543 Email: jeffrey.morneau@dot.ca.gov Butte, Colusa, Glenn, Nevada, Placer, Sierra, Sutter, and Yuba Counties Kevin Yount (530) 741-4286 Email: kevin.yount@dot.ca.gov Gary Arnold (530) 741-4004 gary.arnold@dot.ca.gov • Butte CAG • Sierra LTC • Colusa CTC • Glenn CTC • El Dorado CTC • Nevada CTC • Placer CTPA • Sacramento Area COG • Tahoe MPO DISTRICT 4 111 Grand Avenue P.O. Box 23660 Oakland, CA 94623-0660 Becky Frank (510) 286-5536 Email: becky.frank@dot.ca.gov Blesilda Gebreyesus (510) 286- 5575 Email: blesilda.gebreyesus@dot.ca.gov Dick Fahey (510) 286-5761 dick.fahey@dot.ca.gov • Metropolitan Transportation Commission DISTRICT 5 50 Higuera Street San Luis Obispo, CA 93401-5415 Hana Mengsteab (805) 549-3130 Email: hana.mengsteab@dot.ca.gov Terri Persons (805) 549-3103 terri.persons@dot.ca.gov • Monterey TAMC • Santa Cruz CCRTC • San Benito COG • Association of Monterey County Bay Area Governments • Santa Barbara CAG • San Luis Obispo COG Packet Page 117 Item 10 40 July 2018 Final Draft DISTRICT GRANT CONTACT ADAPTATION CONTACT MPO/RTPA DISTRICT 6 1352 W. Olive Avenue P.O. Box 12616 Fresno, CA 93778-2616 Lorena Mendibles (559) 445-5421 Email:lorena.mendibles@dot.ca.gov Paul Marquez (559) 445-5867 paul- albert.marquez@dot.ca.gov • Fresno COG • Tulare CAG • Kern COG • Kings CAG • Madera CTC DISTRICT 7 100 S. Main Street Los Angeles, CA 90012 Melanie Bradford (213) 897 -9446 Email:melanie.bradford@dot.ca.gov Wilford Melton (213) 897-1344 wilford.melton@dot.ca.gov • Southern California Association of Governments DISTRICT 8 464 W. 4th Street Mail Station 722 San Bernardino, CA 92401 Rebecca Forbes (909) 388-7139 Email: rebecca.forbes@dot.ca.gov Ricky Rivers (909) 806-3298 ricky.rivers@dot.ca.gov • Southern California Association of Governments DISTRICT 9 500 S. Main Street Bishop, CA 93514 Mark Heckman (760) 872-1398 Email: mark.heckman@dot.ca.gov Mark Heckman (760) 872-1398 mark.heckman@dot.ca.gov • Inyo LTC • Mono LTC • Eastern Kern (COG) DISTRICT 10 1976 E. Dr. Martin Luther King Boulevard P.O. Box 2048 Stockton, CA 95201 Mountain Counties Gregoria Ponce (209) 948-7325 Email: gregoria.ponce@dot.ca.gov Merced, San Joaquin, Stanislaus Counties Tom Dumas (209) 941-1921 Email: tom.dumas@dot.ca.gov Lynn O’Connor (209) 948-3975 lynn.oconnor@dot.ca.gov • Alpine County LTC • Amador CTC • Calaveras COG • Mariposa LTC • Merced CAG • Tuolumne CTC • San Joaquin COG • Stanislaus COG Packet Page 118 Item 10 41 July 2018 Final Draft DISTRICT 11 4050 Taylor Street Mail Station 240 San Diego, CA 92110 San Diego County— Barby Valentine (619) 688-6003 Email: barbara.valentine@dot.ca.gov Imperial County— Beth Landrum (619) 403-3217 Email: beth.landrum@dot.ca.gov Ilene Gallo (619) 688-6460 Ilene.gallo@dot.ca.gov • San Diego Association of Governments • Southern California Association of Governments DISTRICT 12 1750 E. 4th Street Santa Ana, CA 92705 Marlon Regisford (657) 328-6288 Email: marlon.regisford@dot.ca.gov Cole Iwamasa (657) 328-6540 Email: cole.iwamasa@dot.ca.gov Yatman Kwan (657) 328-6277 yatman.kwan@dot.ca.gov • Southern California Association of Governments Packet Page 119 Item 10 Page intentionally left blank. Packet Page 120 Item 10 Meeting Date: 10/16/2018 FROM: Daryl R. Grigsby, Director of Public Works Prepared By: Manny Guzman, Construction Engineering Manager SUBJECT: RAILROAD DISTRICT BOARDWALK REPLACEMENT SPECIFICATION NO. 91615 RECOMMENDATIONS 1. Approve the plans and specifications for the Railro ad District Boardwalk Replacement Specification No. 91615; 2. Authorize staff to advertise for bids; 3. Authorize the City Manager to award the contract if the lowest responsible bid is within the Engineer’s Estimate of $331,000; and 4. Appropriate $350,000 from the City’s SB-1:Road Repair and Accountability Act 2018-19 Fiscal Year Funding DISCUSSION Background Portions of the sidewalk on Santa Barbara Street from Broad to Leff are constructed of wood planks, formerly which was the City’s standard installation for sidewalk in the Railroad District. The boardwalk sidewalk does not have the required lifespan for municipal operations. On May 16, 2017, the City Council approved a new concrete paver style sidewalk standard to replace the boardwalk sidewalk standard (see Attachment A). The existing wood plank boardwalk sidewalk are in poor condition and must be addressed. On April 17, 2018, the Council approved programming SB-1: Road Repair and Accountability Act of 2017 (RMRA) funding to replace the exist ing boardwalk wood planks with new concrete pavers. The new pavers will conform to the recently adopted design standard (see Attachment B). The project will replace all the boardwalk wood planks for new concrete pavers style sidewalk along: Santa Barbara Avenue, High Street and Osos Street. This work will improve pedestrian safety in that important corridor and will reduce the ongoing maintenance costs incurred with the wood plank boardwalk. ENVIRONMENTAL REVIEW This project is categorically exempt fr om environmental review pursuant to section 15301 of the CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement project. A Notice of Exemption has been filed through the Community Development Department Packet Page 121 Item 11 FISCAL IMPACT Funding for this project is proposed to be appropriated from the City’s 2018-19 SB 1 allocation as programmed by Council action on April 17, 2018. Other sources of funding include the Sidewalk Access Improvements Master Account (Specification No. 99868) which has a current available balance of $64,462.39 and the project’s account (Specification No. 91615) which has a current balance of $5,000, Local Revenue Measure funds to support this request. ALTERNATIVE Deny authorization to advertise. The City Council may choo se not to authorize project advertisement. This is not recommended because without proper repairs the sidewalk would have to be closed. Attachments: a - Vicinity Map b - Concrete Paver District CAR c - SB 1 Programming CAR d - Council Reading FIle - 91615 Plans & Specs Packet Page 122 Item 11 Packet Page 123 Item 11 Meeting Date: 5/16/2017 FROM: Daryl Grigsby, Public Works Director Prepared By: David Athey, Supervising Civil Engineer SUBJECT: RAILROAD DISTRICT SIDEWALK ENGINEERING STANDARD MODIFICATION RECOMMENDATION 1. Approve modifications to the Railroad District Sidewalk Engineering Standard 4150; and 2. Approve a new Railroad District Tree Well Engineering Standard 8135. DISCUSSION This staff report requests the approval of modifications to Engineering Standard 4150 and approval of new Engineering Standard 8135. Engineering Standard 4150 provides construction details for Railroad District boardwalk sidewalk. The proposed Engineering Standard 4150 modifications substitute colored concrete pavers for the current wood boardwalk sidewalk. This change was initiated to reduce ongoing maintenance requirements and risk of people tripping and falling. The establishment of Engineering Standard 8135 is being proposed to establish a new tree well standard for the board walk sidewalk. The new standard will bring railroad tree well construction in line with the rest of the City. The proposed Engineering Standards are a result of a year-long public review input process. Background The Railroad District sidewalk is one of three standard sidewalk designs within the City of San Luis Obispo. The other two standard designs include the downtown mission style sidewalk and regular sidewalk used throughout the City. The Railroad District Sidewalk Standard was established in 1998 along with the Railroad District Design Plan. The boardwalk sidewalk design is used to honor the historic and cultural roots that San Luis Obispo has with the railroad. Once installed, the boardwalk sidewalk works well for a couple of years but then starts to require excessive maintenance. Examples of required maintenance include protruding screws and warped, rotted, and splintered boards. A picture showing typical boardwalk sidewalk maintenance needs is shown to the right. Therefore, staff initiated a public process to change the sidewalk standard to eliminate the trip and fall hazards, provide a context appropriate sidewalk, and reduce long-term maintenance costs.  City staff started the public input process by soliciting boardwalk sidewalk replacement ideas Picture 1 – Existing Boardwalk Sidewalk Packet Page 124 Item 11 from local design firms. A total of five different designs were submitted by local firms. The ideas ranged from stamped concrete to concrete pavers. Each of the designs included elements that would mimic boards or railroad track type elements. In addition, staff researched boardwalk replacement ideas including using recycled plastic decking, stamped concrete that mimics the look of wood, and hard woods such as Ipe as replacements. Staff visited Morro Bay to view both recycled plastic boardwalk and stamped concrete sidewalk. With this information, staff submitted a planning application to start the Boardwalk Standard Modification process. Public Works and Community Development staff worked together to present several design options to the Cultural Heritage Commission. Staff met with the Cultural Heritage Commission on August 24, 2015, to present options for boardwalk replacement. The replacement options included ideas ranging from brick and concrete pavers, stamped concrete, and wood replacements. A matrix comparing the benefits and disadvantages of each was presented to the Cultural Heritage Commission. Staff recommended the use of stamped concrete to maintain the appearance of wood planking. Other interested parties including Railroad Museum representatives spoke on the subject and supported the use of an alternative material. The Cultural Heritage Commission ultimately recommended that staff investigate the use of pavers rather than stamped concrete. In addition, the Cultural Heritage Commission requested that staff meet with the San Luis Obispo Railroad Museum group to gather input on the proposed substitute design. Public Works staff met with the San Luis Obispo Railroad Museum Board on December 8, 2015, to discuss the various options previously outlined at the Cultural Heritage Commission meeting. The Museum Board was not in favor of stamped concrete solution as it was perceived as too artificial for the historic district. The Railroad Museum Board also let staff know that while the boardwalk was meant to mimic the historic sidewalk in the area, no record of a wood boardwalk exists. After the Railroad Museum Board discussed the options, unanimous feedback was given for providing an option that included using pavers rather than stamped concrete or a wood substitute. In addition, the Railroad Museum Board also requested that the final paver design not include elements that mimic train tracks (rails and ties) since they have plans to include those elements in a sidewalk near the museum. Staff subsequently prepared a supplement to the planning application that outlined Public Works recommendation to substitute and investigate the use of pavers in lieu of the wood boardwalk. Since pavers were being recommended to be the substitute material, staff explored paver options that could be locally sourced, aesthetically pleasing, easily installed, and available in the long- term. Staff contacted local vendors to explore options for paver materials. Three pavers were ultimately chosen based on the four criteria. The selected material included one brick paver, and two concrete pavers with different colors. Three colors were chosen and a test installation of the three paver types was installed fronting 2098 Santa Barbara Avenue (Miner’s Hardware). A sign was erected explaining the test and asked the public for input. In addition, pictures of the three options were posted on Open City Government to solicit feedback from the public. The test and request for input was also announced on Public Works’ Facebook, Twitter, and Nextdoor websites. Pictures of the three options are shown below. Packet Page 125 Item 11 Staff received approximately 45 direct email responses related to the test installation. Staff also received nine statements from Open City Hall and had 45 separate visitors. The input from open City Hall is equivalent to 27 minutes of public comment. The comments from both the test installation and open City hall were just about evenly split between the wire cut red brick (Picture 3) and railroad blend concrete paver (Picture 4), with the Railroad blend paver getting more positive comments. Each of the surfaces have similar roughness when installed per the manufacturer’s recommendation and compliant with Americans with Disabilities Act (ADA) requirements. Based on Cultural Heritage Commission and public input the Boardwalk Engineering Standard 4150 (see Attachment A) was modified to include concrete pavers as in-lieu of a wood boardwalk. Concrete pavers provide easy installation, low long-term maintenance cost, and local availability. The concrete paver is proposed to be tumbled and installed flat side up in order to provide a smooth, flat surface. The tumbled paver gives an aged appearance. Based on public popularity the standard is proposed to use the “railroad blend” color (Picture 4, above). Included with the revised boardwalk standard, a new Tree Well Standard for the boardwalk area was developed. Currently, the City does not have an Engineering Standard for railroad district tree wells, as trees can grow through an opening in the boardwalk that is periodically cut wider to provide an area for the tree. The new standard includes the same tree grates that are currently installed around the city. Staff decided to develop a new standard to show how the frame and grate are integrated into the concrete pan under the pavers. The new Railroad District Tree Well Engineering Standard 8135 is included as Attachment B. CONCURRENCES Staff sent the final draft standards to all known Railroad District landowners as a final follow-up. Staff wanted to ensure that the landowners are aware of the proposed boardwalk change and new tree well standard. Staff notified the landowners that comments were being sought on the new standard and could be submitted by April 3rd. Staff has not received any comments as of April 10th. Community Development Department staff have reviewed and concur that the proposed Boardwalk Sidewalk standard changes are in conformance with the Cultural Heritage Packet Page 126 Item 11 Commission direction. ENVIRONMENTAL REVIEW This action is exempt from environmental review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). It can be seen with certainty that adoption of Engineering Standards 4150 and 8135 could not have a significant effect on the environment. Specific projects that utilize Engineering Standards 4150 and 8135 will be subject to CEQA at the time the project is filed. FISCAL IMPACT There is no immediate public or private fiscal impact that will result from this change. This change does not require any landowner to install new or replace existing sidewalk. This change will guide future development and allow the replacement of the existing wood boardwalk with concrete pavers. The installation of this new sidewalk standard cost is roughly $125 per linear foot more than the wood boardwalk; however, the extra cost will pay for itself over time from reduced maintenance and public risk of tripping and falling. The current wood boardwalk lifespan is five to ten years. The new sidewalk lifespan is estimated to last more than 50-years. ALTERNATIVES 1. Choose a different paver material or color. Direct staff to investigate using a different paver material or color. While it is possible to find other colors and paver materials, the options provided are readily available from vendors within the City. 2. Reject staff’s proposed changes and keep the current wood boardwalk standard. Staff does not recommend this course of action based on the high maintenance costs and potential for trip and fall claims. Attachments: a - 4150 Rail Road Sidewalk Draft 04-13-2017 b - 8135 Rail Road Tree Well Draft 03-16-2017 Packet Page 127 Item 11 Packet Page 128 Item 11 Packet Page 129 Item 11 Packet Page 130 Item 11 Meeting Date: 10/16/2018 FROM: Daryl Grigsby, Public Works Director Prepared By: Brian Nelson, Supervising Civil Engineer SUBJECT: APPROPRIATE GRANT FUNDS FOR MARSH STREET BRIDGE REPLACEMENT PROJECT RECOMMENDATION Appropriate an additional $1,406,160 in grant funding for the Marsh Street Bridge Project , for a total grant funding to match the federal funded allocation of $6,946,943. DISCUSSION Background The Marsh Street Bridge, located near the intersection of Marsh and Santa Rosa Streets, was approved by the City Council in January 2013 for removal and replacement. This followed a determination by the California Department of Transportation (Caltrans) that the bridge, built in 1909, is structurally deficient. Upon this determination, the City contracted with Dokken Engineering to conduct a bridge assessment. This assessment concluded that a complete replacement of the existing bridge was the most prudent and cost -effective alternative given the age of the structure. On January 22, 2013, the City Council conceptually appr oved the removal and replacement of the Marsh Street Bridge and proceeded with design of a new fully-replaced bridge. Dokken Engineering began the design process, including development of the plans, specifications and construction cost estimate for the bridge. That work is nearly complete. Dokken is close to finalizing the environmental permitting process, and the City Council adopt ed the Final Environmental Impact Report (FEIR) for the Marsh Street Bridge Replacement project on May 2, 2017. On August 21, 2018, the Council authorized agreements for temporary and permanent construction easements from adjacent property owners. The temporary easements are necessary for equipment accessibility to San Luis Obispo Creek to conduct construction activities within the creek, provide a staging and equipment area for the bridge contractor, and provide vehicular and emergency access for a medical services business adjacent to the bridge. There will also be permanent easements acquired from two of the owners for construction and maintenance of a wing wall for the bridge. Packet Page 131 Item 12 The temporary and permanent easements are also necessary for obtaining clearance from Caltrans to enter the construction phase. This phase releases the Highway Bridge Program (HBP) grant funds fo r construction, allows advertising the project for construction bidding, enables award of the project to a responsive and responsible bridge contractor, and provides for construction of the bridge. The construction of the Marsh Street Bridge is anticipate d to start in Spring 2019. Agreements have been reached for the easements and transfer of funds is expected to take place in early October. Project Remaining Tasks The purpose of Caltrans HBP Grant Funding Program is to replace or rehabilitate public highway bridges over waterways, other topographical barriers, other highways, or railroads when the State and the Federal Highway Administration determine that a bridge is significantly important and qualifies under the HBP program Guidelines, as is the case with the Marsh Street Bridge. Caltrans provided grant funding to support the preliminary engineer ing and right-of-way acquisition, both of which are nearly complete. The below table outlines completed and ongoing tasks that are critical for the construction phase to begin in 2019. Ensuring that funding is appropriated will allow the work to proceed on schedule. Project Delivery Tasks Anticipated Completion Date Environmental Impact Report Certification February 2018 Regulatory Permitting Prior to Construction Design October 2018 Right of Way Certification October 2018 Construction Spring 2019 ENVIRONMENTAL REVIEW The City Council approved adoption of the Final Environmental Impact Report (FEIR) on May 2, 2017. In addition to National Environmenta l Policy Act (NEPA) approval with the FEIR, environmental permitting should be nearly complete with the Department of Fish & Wildlife, the Regional Water Quality Control Board, the Army Corps of Engineers and the State Historic Preservation Office. Packet Page 132 Item 12 FISCAL IMPACT The project was approved as part of the 2015-17 Financial Plan, page 3-156. This project is 88.53% funded by the HBP grant funding with a 11.47% City Local Revenue Measure match. The table below shows the funding allocation for work complete d, as well as upcoming funding requirements. Total Cost HBP Grant Funds (88.53%) City Match (11.47%) Encumbered Costs to Date: 1 Engineering & Environmental (1)$627,452 $555,484 $71,969 Future Costs: 2 Preliminary Engineering (2)$62,931 $55,713 $7,218 3 Property Acquisition (Purchase of Easements)$158,553 $140,367 $18,186 4 Construction $7,625,000 $6,750,413 $874,588 5 Total Future Costs:$7,846,484 $6,946,493 $899,992 6 Total for Project:$8,473,937 $7,501,976 $971,961 7 Remaining Funds for Allocation:$7,846,484 $6,946,493 $899,992 8 Total Appropriated Funds $6,538,373 $5,540,332 $998,041 9 Total Additional Funds Required $1,406,160 $1,406,160 None Marsh Street Bridge Replacement Project (Specification No. 90480) (2) Design contract amendment from Dokken Engineering due to additional design & property acquisition service costs (1) Contract with Dokken Engineering, which includes design, environmental permitting, and property acquisition Staff recommends the appropriat ion of $1,406,160 in HPB grant funding that Caltrans’ has provided to the City to the construction phase of the Marsh Street Bridge Replacement project. ALTERNATIVES Deny allocation of grant funding. The City Council could choose to not allocate grant funding for the project. Staff does not recommend this alternative. Recognizing the availability of grant funding is necessary to fully fund ongoing des ign and right of way costs, as well as budgeting for construction in 2019. Packet Page 133 Item 12 Page intentionally left blank. Packet Page 134 Item 12 Meeting Date: 10/16/2018 FROM: Michael Codron, Community Development Director Prepared By: Cara Vereschagin, Assistant Planner SUBJECT: CONDUIT FINANCING FOR THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE ACQUISITION AND REHABILITATION OF 172 AFFORDABLE HOUSING UNITS LOCATED IN THE CITY RECOMMENDATIONS 1. Conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) of 1982 and pursuant to the requirements of the Internal Revenue Code of 1896, as amended (the “Code”); and 2. Adopt a resolution allowing the issuance of a tax-exempt obligation by the Housing Authority of the City of San Luis Obispo (HASLO), for the purpose of providing financing for the acquisition and rehabilitation of various multifamily rental housing facilities located in the City (the “Project”), in order to preserve existing affordable housing; such adoption of the resolution is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 et seq. DISCUSSION Background The Housing Authority of the City of San Luis Obispo (the “Authority”) is requesting that the City Council of the City of San Luis Obispo (the “City”) hold a public hearing regarding the issuance of debt obligations (which may be in the form of a loan evidenced by a note or tax- exempt revenue bonds, and referred to in this Notice as the “Bonds”) in one or more series in an aggregate amount of approximately $62,000,000. The proceeds of the Bonds will be used to pay certain expenses incurred in connection with the issuance of the Bonds and to finance the acquisition and rehabilitation of the following multifamily rental housing facilities: Packet Page 135 Item 13 Current Name of Facility Location of Facility Number of Rental Housing Units King-South- Branch 448 South Street, 441 Branch Street and 2173 King Street, San Luis Obispo, CA 8 Torro Gardens 1600 Toro Street, San Luis Obispo, CA 20 Hathway Apartments 508-520 Hathway Street, San Luis Obispo, CA 20 Highland Apartments 478-480 High Street, San Luis Obispo, CA 10 Palm View Apartments 11650-11690 Los Osos Valley Road, San Luis Obispo, CA 20 Leff Street Apartments 456-493 Leff Street, San Luis Obispo, CA 20 High Street 228 High Street, San Luis Obispo, CA 6 Loma Vista Apartments 2929 Augusta Street, San Luis Obispo, CA 16 Harris 2126 Harris Street, San Luis Obispo, CA 3 Royal Way 1497 Royal Way, San Luis Obispo, CA 8 Southwood 1240 Southwood Drive, San Luis Obispo, CA 3 Upham 711 Upham Street, San Luis Obispo, CA 3 Puerta Del Sol 4280 South Higuera, San Luis Obispo, CA 15 Arbor Place 1172 Leff Street, 1175 Islay Street and 1635 Toro Street, San Luis Obispo, CA 20 TOTAL 172 The Housing Authority is committed to providing much needed additional affordable housing in the City of San Luis Obispo. Preservation of existing affordable housing is identified as a key implementation strategy in the City’s affordable housing program and adopted Housing Element . The primary funding source for this project will be low income housing tax credits awarded by the California Tax Credit Allocation Committee (TCAC). These tax credits are then purchased by investors who become a limited partner. California statue does not allow Housing Authorities to be a party in these partnerships, so the Housing Authority will hold its interest t hrough its related entity San Luis Obispo Non-profit Housing Corporation (SLONP). The facilities to be financed are to be owned by a California limited partnership (the “Borrower”) to be formed by SLONP, and the facilities will be operated by the Authorit y or another entity selected by the Borrower. The partnerships have a 15-year compliance period over which the tax credits are earned. After the 15 years, the limited partner has the option to seek a buyer for its interest. The project will feature an affordability requirement for a minimum of 55 years. All or a portion of the rental units in the housing facilities will be rented to persons and families of low or very low income. The principal amount of the Bonds allocable to each respective facility will be determined prior to the date of issuance of the Bonds, but will not exceed $10,0 00,000 as to any one facility. Packet Page 136 Item 13 No City Liability for the Financing There is no City liability in approving this financing arrangement for the benefit of the Project; a t ransaction generally referred to as “conduit financing.” The bonds are payable solely from the payments by the Borrower on a loan made to it (the “Borrower Loan”) by the Authority from the proceeds of the Bonds. The rental payments by tenants in the Project are the source of revenue used by the Borrower to repay the Borrower Loan. The City has no financial, legal, or moral obligation, liability or responsibility for the Project or for the repayment of the Bonds or the repayment of the Borrower Loan. The documents for the Bonds clearly provide that the Bonds are payable solely from payments on the Borrower Loan made by the Borrower. Outside of holding this hearing and adopting the required resolution, no other participation or activity of the City with respect to the bonds will be required. City’s Conduit Financing Policy While the Council is not obligated to approve this request, it would be consistent with past City actions regarding conduit financing. Under the City’s debt financing and management po licies, consideration of a request for conduit financing is generally a two -step process: 1. First asking the Council if they are interested in considering the request and establishing the ground rules for evaluating it. 2. And then returning with the results o f this evaluation and recommending approval of appropriate financing documents if warranted. City’s Past Experience with Conduit Housing Bonds The City has approved thirteen “conduit” housing bond issues in the past as reflected in the following summary. There have been no financial difficulties with any of these bond issues. 1. 1985. 168-unit apartment development on Southwood Drive (“Parkwood Village”). 2. 1998. 30-unit development affordable for seniors and persons with disabilities located at 611 Brizzolara Street. 3. 1999. 122-unit apartment development by the De Vaul Ranch Company, consisting of 26 units will be affordable: 24 units for “very-low” and 2 units for “moderate” income households. 4. 2002. 19-unit senior apartment development at 433 Pacific Street (“Carmel Street Apartments”). 5. 2005. 40 affordable one-bedroom units for seniors as well as one manager’s unit in an existing historic single-family residence at 2005 Johnson Avenue (“Del Rio Terrace”). 6. 2009 and 2011. 8-unit housing project at 1468 East Foothill Boulevard for the University Board of the Santa Barbara Presbytery. 7. 2012. 120-unit apartment project affordable to low and very-low income households located at 1550 Madonna Road. 8. 2013. 19-unit apartment project affordable rental apartment facility for seniors located at 433 Pacific (“Carmel Street Apartments”). 9. 2013. 40-unit affordable rental apartment facility for seniors located at 2005 Johnson Avenue (“Del Rio Terrace”). Packet Page 137 Item 13 10. 2015. Rehabilitation of 55 affordable rental units located at 1092 Orcut t Road, 1102 Ironbark, and 1363 Pismo Street. 11. 2016. 46-unit affordable apartment development at 3680 Broad Street (“Iron Works”). 12. 2018. 36-unit affordable apartment development at 3175 Violet Street (“Courtyard at the Meadows”). 13. 2018. Rehabilitation of 107 affordable rental units for seniors located at 3000 Augusta Street (“Judson Terrace Homes”)1. Next Steps After the TEFRA public hearing, adoption of the Resolution of the Council approving the issuance of the Bonds, and approval of the Borrower’s application for tax-exempt financing, the Borrower can expect to receive the bond allocation in Fall 2018. There will be no further actions required by the City. ENVIRONMENTAL REVIEW The project is exempt from environmental review per Section 15061 (b)(3) General Rule of the CEQA Guidelines. The project is an action to award funding. FISCAL IMPACT The Bonds to be issued for the Pro ject will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower. ALTERNATIVES 1. Do not approve the issuance of financing for the benefit of the multifamily residential facilities. Due to the lack of liability for repayment of financing by the City, this option is not recommended. 2. Defer consideration of the request. Due to the critical need for tax exempt bond financing to complete the acquisition and rehabilitation of the Project , this option is not recommended. Attachments: a - DRAFT Resolution 1 There have been 162 affordable units preserved and 493 affordable units created with conduit funding in the City of San Luis Obispo since 1985. Packet Page 138 Item 13 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE INCURRING OF A TAX EXEMPT OBLIGATION BY THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE PURPOSE OF PROVIDING FINANCING FOR THE ACQUISITION AND REHABILITATION OF VARIOUS MULTIFAMILY RENTAL HOUSING FACILITIES LOCATED IN THE CITY IN ORDER TO PRESERVE EXISTING AFFORDABLE HOUSING WHEREAS, the Housing Authority of the City of San Luis Obispo (the “Authority”) is authorized by Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of California, as amended (the “Act”), to incur indebtedness and to make loans for housing purposes specified in the Act ; and WHEREAS, the Authority has been advised that the San Luis Obispo Nonprofit Housing Corporation intends to establish a California limited partnership (the “Borrower”) that will acquire and rehabilitate various multifamily rental housing facilities identified in “Exhibit A” to this Resolution (referred to in this Resolution collectively as the “Housing Facilities”); and WHEREAS, such assistance will involve the issuance by the Authority of debt obligations (which may be in the form of a loan evidenced by a note or tax-exempt revenue bonds, and referred to in this Resolution as the “Bonds”) in the approximate amount of $62,000,000, and a loan of the proceeds of the Bonds to the Borrower; and WHEREAS, all or a portion of the rental housing units in the Housing Facilities will be rented to persons and families of low or very low income as required by the Act and the Internal Revenue Code of 1986, as amended (the “Code”); and WHEREAS, the Bonds will be considered to be a “qualified exempt facility bonds” under Section 142(a) of the Code, and Section 147(f) of the Code requires that the “applicable elected representative” with respect to the Authority approve the issuance by the Aut hority of the Bonds following the holding of a public hearing with respect thereto; and WHEREAS, the Authority has determined that the Council of the City is the “applicable elected representative” to approve the issuance by the Authority of the Bonds because all of the Housing Facilities are located within the City; and WHEREAS, notice of a public hearing by the Council regarding the financing of the Housing Facilities has been duly given as required by the Code, and the Council has held the public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the location, operation and financing of the Housing Facilities, including the Authority's issuance of the Bonds and subsequent lending of the proceeds thereof to the Borrower to pay costs of the acquisition and rehabilitation by the Borrower of the Housing Facilities; and Packet Page 139 Item 13 Resolution No. _____ (2018 Series) Page 2 R ______ WHEREAS, the City will have no liability or responsibility related to the repayment or administration of the Bonds, and the issuance of the Bonds and the financing of the Housing Facilities will not impose any legal, financial or moral obligation on the City; and WHEREAS, it is in the public interest, for the public benefit and in furtherance of the public purpose of the City that the Council approve the issuance by the Authority of the Bonds for the aforesaid purposes. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo declares as follows: SECTION 1. Approval of Issuance of Bonds. The Council of the City of San Luis Obispo hereby approves the issuance of the Authority of the Bonds for purposes of the Code. Packet Page 140 Item 13 Resolution No. _____ (2018 Series) Page 3 R ______ SECTION 2. Environmental Determination. The Council of the City of San Luis Obispo has determined that the above action will not have a significant impact on the environment, as defined by §15061(b)(3) of the California Environmental Quality Act and is e xempt from environmental review. 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 Page 141 Item 13 Resolution No. _____ (2018 Series) Page 4 R ______ EXHIBIT A HOUSING FACILITIES TO BE FINANCED Current Name of Facility Location of Facility Number of Rental Housing Units King-South- Branch 448 South Street, 441 Branch Street and 2173 King Street, San Luis Obispo, CA 8 Torro Gardens 1600 Toro Street, San Luis Obispo, CA 20 Hathway Apartments 508-520 Hathway Street, San Luis Obispo, CA 20 Highland Apartments 478-480 High Street, San Luis Obispo, CA 10 Palm View Apartments 11650-11690 Los Osos Valley Road, San Luis Obispo, CA 20 Leff Street Apartments 456-493 Leff Street, San Luis Obispo, CA 20 High Street 228 High Street, San Luis Obispo, CA 6 Loma Vista Apartments 2929 Augusta Street, San Luis Obispo, CA 16 Harris 2126 Harris Street, San Luis Obispo, CA 3 Royal Way 1497 Royal Way, San Luis Obispo, CA 8 Southwood 1240 Southwood Drive, San Luis Obispo, CA 3 Upham 711 Upham Street, San Luis Obispo, CA 3 Puerta Del Sol 4280 South Higuera, San Luis Obispo, CA 15 Arbor Place 1172 Leff Street, 1175 Islay Street and 1635 Toro Street, San Luis Obispo, CA 20 TOTAL 172 Packet Page 142 Item 13 Meeting Date: 10/16/2018 FROM: Derek Johnson, City Manager Prepared By: Robert Hill, Interim Deputy Director SUBJECT: IRISH HILLS NATURAL RESERVE CONSERVATION PLAN – WADDELL RANCH ADDITION RECOMMENDATION As recommended by the Planning Commission and Parks and Recreation Commis sion, approve a resolution (Attachment A) to: 1. Adopt the Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition; and 2. Adopt a Negative Declaration of environmental impact for the Project. DISCUSSION The City’s Natural Resources Protection Program seeks adoption of the Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition (“the Plan”) that will incorporate the recently acquired Waddell Ranch into the City’s existing Irish Hills Natural Reserve to guide the conservation and stewardship of both properties together as a single management unit. This process will also formally designate the Waddell Ranch as a City Open Space property in accordance with the City’s Open Space Regulations (1996), the Conservation Guidelines for Open Space Lands of the City of San Luis Obispo (2002), and the Conservation and Open Space Element of the City’s General Plan (2006). Overview of Waddell Ranch The Waddell Ranch is a hidden gem located in a secluded setting within the Irish Hills area at the southern boundary of the City of San Luis Obispo and its Greenbelt. The upper extents of the property feature spectacular 360 panoramic views of the City to the north and the Pacific Ocean to the south, as well as the surrounding region. Waddell Ran ch also hosts exceptional plant and wildlife diversity, an interesting cultural resource legacy, and is well-suited to offer pleasant hiking, biking, and passive recreational opportunities. The Waddell Ranch is contiguous with the existing Irish Hills Nat ural Reserve and represents the capstone piece of a long-standing conservation vision to establish permanent protection of the area’s outstanding natural resource values including a suite of rare plants, artesian springs, and important wildlife habitat. T he acquisition of Waddell Ranch also allows for the completion of a loop trail through the Irish Hills Natural Reserve along the top of Mine Hill where outstanding views of the Pacific Ocean can be gained and enjoyed. Plan Overview The Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition provides a framework for both properties to be managed together as a single unit, while primarily addressing property-specific site stewardship at Waddell Ranch: Packet Page 143 Item 14 1. Natural Resources Protection. The Plan places priority on maintaining the natural ecosystem, while allowing passive public recreation as appropriate and compatible. The Waddell Ranch provides habitat for four special status wildlife species and fifteen special status plant species, including a newly discovered plant species, that shall be protected and monitored over the long-term. Protective status is given to native plant communities and habitats that persist or are establishing within the open space area for the functions and values that they provide. 2. Scenic Resources. The upper ridgeline of the Waddell Ranch represents a scenic, if distant, visible backdrop on the south side of the City of San Luis Obispo. The conservation and protection of this property will ensure the integrity of this scenic resource. 3. Cultural Resources. The Waddell Ranch contains two rock walls that were constructed in the first half of the 20th century to create separate livestock pastures that may be of historic significance under CEQA Guidelines §15064.5. The wa lls will be protected and maintained, and there are no actions in the Plan that would change or alter this potential resource in any way. The Northern Chumash also expressed interest in the land during the preparation of the Plan and will have the opportunity for ceremonial use. 4. Erosion and Drainage. A Custom Soil Resource Report was prepared for Waddell Ranch using the United States Department of Agriculture’s Natural Resources Conservation Service (NRCS) website application. The report reveals that Wad dell Ranch is comprised almost entirely of serpentine soils known as the Obispo -Rock Outcrop Complex and identified as soil map unit No. 183. This soil is excessively well drained and characterized as having severe erosion potential, especially given the 15-75% slopes. Accordingly, ongoing erosion control and water management strategies are necessarily a part of the Plan. 5. Fire Protection. Waddell Ranch is surrounded by open land uses comprised of the existing Irish Hills Natural Reserve and other larger ranch holdings. The Irish Hills landscape, in general, represents a significant wildland fire hazard , but there is no significant recorded fire history in this system. A key component of the Plan is to address fire hazard that could result in unacceptable safety risk and property loss. This is due to prevailing westerly winds; presence of annual grassland, chaparral, oak woodland, and mixed ornamental trees and vegetation; and the Waddell Ranch’s adjacency with the larger Irish Hills landscape. 6. Trails and Passive Recreation. An existing system of old jeep trails provide access through the Waddell Ranch. The Plan calls for maintenance of existing trails, as well as the addition of two new trail segments; one will allow for access to the southerly are as of the property where panoramic views of the Pacific Ocean can be enjoyed, while the other provides a return route back to the existing Irish Hills Natural Reserve. A short section is also mapped to avoid the existing in-stream crossing of Froom Creek during the wet season with the installation of a narrow, fiberglass kit bridge that can be easily assembled and installed on site, while this trail will also encourage use away from the neighboring property line. An existing trail traverses the upper meado ws area of Waddell Ranch. These meadows are considered sensitive and remain wet in the winter and early spring; two sections of raised wooden boardwalk are planned for these sections. The Plan also presents the opportunity to bring forward two new trails in the existing Irish Hills Natural Reserve. One is an extension of the Bog Thistle Trail that is designated for hiking only, that would allow for hikers to gain a prominent lookout and the middle ridgeline before join ing the existing Durata Vista Trail. The other links the top of the Mine Trail with the Morro View Trail creating a new loop in the upper, westerly portion of the Irish Hills Natural Reserve. A brief linkage at the easterly Packet Page 144 Item 14 edge of the Froom Ranch portion of the Irish Hills Natural Reserve to the Mountainbrook property is also shown; this segment is a previously approved trail, that has yet to be constructed. All new trails have been carefully considered and mapped to avoid sensitive resources and special status plants and wildlife areas, as well as encourage use away from a few existing trail areas that are proximate to sensitive areas. CONCURRENCES AND ADVISORY BODY REVIEW City of San Luis Obispo Natural Resources Program staff, Parks and Recreation Department staff, and Fire Department staff have reviewed components of the plan pertinent to their departments and have provided concurrence. The Planning Commission reviewed the Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition and Initial Study / Negative Declaration at its meeting on September 26, 2018. The Parks and Recreation Commission also reviewed these items at its meeting on October 3, 2018. Both of these advisory bodies recommend adoption by the City Council. ENVIRONMENTAL REVIEW An Initial Study has been prepared that identifies several areas where “Less Than Significant” impacts have the potential to occur. These are: Aesthetics; Biological Resources; Cultural Resources; Geology and Soils; Hazards and Hazardous Materials; Hydrology and Wa ter Quality; and, Recreation. Accordingly, a Negative Declaration is recommended for adoption. FISCAL IMPACT Day-to-day management of Waddell Ranch will continue to be supported through the operating budgets within the Natural Resources Program and Ranger Service. City staff will also pursue grants to augment funding and volunteer help for the Plan’s identified projects. Overall, the fiscal impact of the Plan and its implementation is considered relatively minor given opportunities to phase projects and leverage modest investments of City funds over time. ALTERNATIVES The City Council could: 1. Approve the Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition; and adopt the Negative Declaration with amendments. 2. Deny the Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition and not adopt the Negative Declaration, although this is not recommended given the unanimous advisory body recommendations. 3. Continue the item with specific direction of more information or discussion t ime is required before taking action. Packet Page 145 Item 14 AVAILABLE ONLINE 1. Draft Initial Study / Negative Declaration 2. Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition, Public Hearing Review Draft, October 2018. These documents are available on the C ity’s website by following the link below: http://www.slocity.org/government/department -directory/community-development/documents- online/environmental-review-documents/-folder-1968 Attachments: a - Resolution Packet Page 146 Item 14 RESOLUTION NO. ________ (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE IRISH HILLS NATURAL RESERVE CONSERVATION PLAN – WADDELL RANCH ADDITION AND ADOPTION OF A NEGATIVE DECLARATION WHEREAS, the City of San Luis Obispo has adopted policies for protection, management, and public use of open space lands and cultural resources acquired by the City; and WHEREAS, the City of San Luis Obispo manages twelve open space areas totaling approximately 3,850 acres, including the approximately 154-acre Waddell Ranch; and WHEREAS, the Planning Commission, Parks and Recreation Commission, and the general public have commented upon the Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition as it has moved through a Council-directed approval process, and staff has considered and incorporated those comments where appropriate. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition. The City Council hereby adopts the Terrace Hill Open Space Conservation Plan, an official copy of which shall be kept on record with the City Clerk, based on the following findings: a. The Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition is consistent with General Plan goals and policies relating to the oversight and management of City open space areas, specifically Conservation and Open Space Element Policy 8.5.6 that calls for the development of conservation or master plans for open space properties to protect and enhance them in a way that best be nefits the community as a whole; and b. Implementation of the Irish Hills Natural Reserve Conservation Plan – Waddell Ranch Addition will provide protection of identified natural resources and appropriate public access to the site while maintaining a majority of the site for habitat protection and enhancement. SECTION 2. Environmental Review. The City Council hereby adopts the Negative Declaration for the project, an official copy of which shall be kept on record with the City Clerk, finding that it adequately identifies all of the potential impacts of the project and that those potential impacts identified in the areas of Aesthetics; Biological Resources; Cultural Resources; Geology and Soils; Hazards and Hazardous Materials; Hydrology and Water Quality; and, Recreation, are de minimis and less than significant. Packet Page 147 Item 14 Resolution No. _____ (2018 Series) Page 2 R ______ These findings, together with incorporation by reference into the Project Description that the property will be managed in accordance with policies found in the City’s Conservation and Open Space Element of its General Plan (2006), the Conservation Guidelines for Management of Open Space Lands of the City of San Luis Obispo (2002), and the City’s Open Space Regulations (Municipal Code 12.22), the issuance of a Negative Declaration is appropriate. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2018. _______________________________ Heidi Harmon, Mayor 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 Page 148 Item 14 Meeting Date: 10/16/2018 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Molly Cano, Tourism Manager SUBJECT: ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATIONS 1. Conduct a public hearing to receive testimony regarding the City Co uncil’s intention to continue the citywide Tourism Business Improvement District ; and 2. Determine whether a legally sufficient protest is made; and 3. If no legally sufficient protest is made, adopt a resolution affirming the continuation of the San Luis Obispo Tourism Business Improvement District, setting forth the basis for the assessment, and levying the assessment upon hotels in the district for fiscal year 201 8-19 (Attachment A). DISCUSSION Background On October 2, 2018, the City Council reviewed and approved the Tourism Business Improvement District (TBID) board’s annual report pursuant to Municipal Code Section 12.42.060 (Attachment B). The City’s Municipal Code further requires that, after the approval of the annual report, Council may choose to adopt a resolution of intention to levy an annual assessment for that fiscal year and schedule a public hearing to receive any written or oral protests against the district . Resolution No. 10946 (2018 Series), setting such a hearing, was adopted on October 2, 2018 (Attachment C). Following the October 2, 2018, Council action, all lodging businesses within the district including hotels, motels, bed and breakfast properties and the City permitted homestays, were noticed for the public hearing scheduled for October 16, 2018. Those notices were sent on October 5, 2018 to all assessed properties. Packet Page 149 Item 15 Council Action: Public Hearing and Resolution As set forth in Sections 36524 and 36525 of the California Streets and Highways Code and San Luis Obispo Municipal Code Section 12.42.060, the Council has the ability to continue the citywide TBID at the public hearing, unless oral or written protests are received from City hoteliers that will pay 50% or more of the proposed assessments. Under Municipal Code Section 12.42.060, protests are weighted based upon the annual assessment for the prior year by each hotel. Staff will have assessment information available at the meeting, but for confidentiality reasons, this information is not made public before or at the meeting. In the event that a sufficient negative protest occurs, no further proceedings to continue the levy of assessments for that fiscal year shall take place. At the conclusion of the public hearing, if insufficient protest is received, Council may then adopt a resolution affirming the continuation of the San Luis Obispo Tourism Business Improvement District, setting forth the basis for the assessment, and levying the assessment upon hotels in the district for fiscal year 2018-19. Such a resolution is provided as Attachment A. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “project” under CEQA Guidelines sec. 15278. FISCAL IMPACT In 2018-19, the TBID projected revenue is $1,473,400, which is intended to be used for tourism marketing and promotion as outlined in the TBID Strategic Plan and 2018-20 TBID Marketing Plan. ALTERNATIVES Delay the public hearing. Staff does not recommend this alternative because all legally required noticing has been completed. In addition to the legal noticing, staff provided additional constituent outreach. In the event that the City receives close to 50% protest, the Council could delay the public hearing in order verify protest submissions. Deny the resolution. Staff does not recommend this alternative if the requirements to deny the resolution under the legal protest specifications were not met. Attachments: a - Reso confirming TBID 10-16-18 b - 10/2/18 Council Action Update c - RESOLUTION OF INTENTION 10946_2018 series Packet Page 150 Item 15 R_______ RESOLUTION NO. ________ (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DECLARING THE BASIS FOR AND THE LEVY OF THE ASSESSMENT FOR THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT, AND AFFIRMING THE ESTABLISHMENT OF THE DISTRICT WHEREAS, the Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Street s and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotio n of tourism; and WHEREAS, the lodging businesses within the proposed City of San Luis Obispo Tourism Business Improvement District had requested the City of San Luis Obispo establish such a self- assessment improvement district in 2008; and WHEREAS, the San Luis Obispo Tourism Business Improvement District was established in July 2008, and the San Luis Obispo Tourism Business Improvement District Law was incorporated into the Municipal Code under Chapter 12.42; and WHEREAS, the City Council appointed an advisory board to carry out the functions specified in Street and Highways Code Section 36530, and to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS the San Luis Obispo Tourism Business Improvement District Law and the Parking and Business Improvement Law of 1989 requires the advisory body to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS, such report was filed and approved by the City Council on October 2, 2018 WHEREAS, on October 2, 2018 the Cit y Council adopted Resolution No. 10946 (2018 Series) declaring its intention to continue the San Luis Obispo Tourism Business Improvement District in 2018-19; and WHEREAS, notices regarding the approval of the public hearing were sent on October 5, 2018 to all assessed properties; and WHEREAS, the City Council held a duly noticed Public Hearing on October 16, 2018 to allow for protests, as contemplated by Streets and Highway Code Section 36524; and WHEREAS, sufficient written or oral protest was not received from hotel businesses in the district which pay fifty percent or more of the assessment; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Packet Page 151 Item 15 Resolution No. _____ (2018 Series) Page 2 R ______ a) The establishment of Tourism Business Improvement District in the City of San Luis Obispo in accordance with the San Luis Obispo Tourism Business Improvement District Law, San Luis Obispo Municipal Code Chapter 12.42, and the California Streets and Highways Code, section 36500 et seq. (Parking and Business Improvement Law of 1989) is affirmed. b) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer marketing programs that increase overnight lodging. c) The assessment shall be levied and allocated by the City of San Luis Obispo. d) The assessment shall to be levied on all “hotels”, as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. e) The assessment shall be based on two percent (2%) of gross room r ent. f) New hotels shall not be exempt from immediate assessment. 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 Page 152 Item 15 Resolution No. _____ (2018 Series) Page 3 R ______ ____________________________________ 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 Page 153 Item 15 Action Update CITY OF SAN LUIS OBISPO CITY COUNCIL Tuesday, October 2, 2018 Regular Meeting of the City Council CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 Agency Negotiators: Monica Irons, Nickole Sutter, Rick Bolanos, Derek Johnson, Christine Dietrick Represented Employee Organizations: San Luis Obispo City Employee’s Association (SLOCEA) San Luis Obispo Police Officer’s Association (POA) San Luis Obispo Police Staff Officer’s Association (SLOPSOA) International Association of Firefighters Local 3523 Unrepresented Employees: Unrepresented Management Employees Unrepresented Confidential Employees No Reportable Action. CONSENT ITEMS 4. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5 – 0 to waive reading of all resolutions and ordinances as appropriate. 5. REVIEW MINUTES OF THE AUGUST 28, 2018, AND SEPTEMBER 18, 2018, CITY COUNCIL MEETINGS CARRIED 5 – 0 to approve the minutes of the City Council meetings held on August 28, 2018 and September 18, 2018. 6. ADOPTION OF AN ORDINANCE TO AUTHORIZE THE IMPLEMENTATION OF A COMMUNITY CHOICE ENERGY PROGRAM CARRIED 5 – 0 to adopt Ordinance 1654 (2018 Series), entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, authorizing the implementation of a Community Choice Aggregation Program.” Packet Page 154 Item 15 Action Update – City of San Luis Obispo City Council Meeting of October 2, 2018 Page 2 7. REQUEST FOR QUALIFICATIONS FOR LEGAL SERVICES CARRIED 5 – 0 to: 1. Approve the Request for Qualifications (RFQ) for Legal Services. 2. Authorize the City Attorney to create a 2019-2024 On-Call List from the proposals received. 3. Authorize the City Attorney to execute agreements with the On-Call list of law firms and/or attorneys on an as-needed basis. 8. IMPLEMENTATION OF THE 2018 ZONING REGULATIONS COMPREHENSIVE UPDATE (TITLE 17 OF CITY’S MUNICIPAL CODE) CARRIED 5 – 0 to adopt Resolution No. 10945 (2018 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, implementing the 2018 Zoning Regulations comprehensive update (Zoning Regulations update, GENP-0327-2017),” to provide a clear understanding regarding which zoning regulations apply to various projects which are at different stages of the application and permitting process. PUBLIC HEARING ITEMS AND BUSINESS ITEMS 9. MENTAL HEALTH AND DRUG AND ALCOHOL SERVICES AND PROGRAMS ACTION: Receive and file presentation. 10. 2017-18 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT CARRIED 5-0 to approve: 1. Receive and approve the (TBID) Board’s 2017-18 annual report; and 2. Adopt Resolution No. 10946 (2018 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, declaring its intention to continue the San Luis Obispo Tourism Business Improvement District, to continue the basis for and to levy the assessment for the district, and to set a date for the public hearing on the district and the assessment for 2018-19” at the same rate as in the fiscal year 2017-18. 11. SCHEDULE FOR 2019-21 FINANCIAL PLAN ACTION: By consensus the City Council approved the goal setting process and timetable for development of the 2019-21 Financial Plan and directed staff to look for alternatives for the Goal Setting Workshop in leu of the proposed Saturday workshop. Packet Page 155 Item 15 Action Update – City of San Luis Obispo City Council Meeting of October 2, 2018 Page 3 12. PUBLIC HEARING - AMEND THE MUNICIPAL CODE, TITLE 10 (VEHICLES AND TRAFFIC) CARRIED 5-0 to introduce Ordinance No. 1656 (2018 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Municipal Code Title 10 regarding Vehicles and Traffic,” and direct staff to remove changes to commercial loading and unloading zones after 6:00 p.m. and work with SLO Downtown on a solution. 13. PUBLIC HEARING - ESTABLISH FINE AMOUNTS FOR ELECTRIC VEHICLE CHARGING VIOLATIONS AND BICYCLE LANE VIOLATIONS, AND AN INCREASE OF EXISTING PARKING VIOLATION FINE AMOUNTS CARRIED 5-0 to adopt Resolution No. 10947 (2018 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, establishing and increasing Parking Citation Fines,” including the revised Exhibit “A” as presented at the meeting. Packet Page 156 Item 15 Packet Page 157Item 15 Packet Page 158Item 15 Packet Page 159Item 15 Page intentionally left blank. Packet Page 160 Item 15 Meeting Date: 10/16/2018 FROM: Michael Codron, Community Development Director Tim Bochum, Deputy Public Works Director Prepared By: David Watson, Contract Planner Diane Dostalek, Senior Civil Engineer SUBJECT: UPDATE FOR THE ORCUTT AREA SPECIFIC PLAN PUBLIC FACILITIES FINANCING PLAN RECOMMENDATION 1. Hold a public meeting to receive public testimony on a proposed update to the Public Facilities Financing Plan for the Orcutt Area Specific Plan; and 2. After closing the public meeting, adopt a Resolution (Attachment A) pursuant to Government Code Section 66016 to approve an update to the Public Facilities Financing Plan for the Orcutt Area Specific Plan; and 3. Authorize the Community Development Director to enter into Public Facilities Financing P lan Fee Credit Agreement s (Attachment I) with the Righetti Ranch L.P. developers and any other Orcutt Area Specific Plan developers, in a form subject to the approval of the City Attorney. REPORT-IN-BRIEF In May 2010, Council approved the Orcutt Area Specific Plan (OASP) (Attachment B – Vicinity Map). Chapter 8 of that document included a Public Facilities Financing Plan (PFFP) that supports the delivery of needed infrastructure to serve future development in the area. The PFFP includes a detailed breakdown of the estimated costs of these improvements and identifies the OASP’s share of the cost of these projects, including roads, bridges, pedestrian and bicycle paths, utilities, and public parks, all needed to support development of the specific plan area. The fees that are established fo r OASP development are based on an analysis of the relative benefits of the planned development projects and spreads these costs across future development of the area accordingly. This approach is anticipated to implement a “pay-as-you-go” policy that provides for the completion of phased infrastructure to meet the needs of a growing area of the community. On November 15, 2016 and December 12, 2017 Council approved updates to the PFFP to adjust costs to reflect then-current construction estimates and to revise the scope of certain projects to better address implementation of park and traffic circulation needs in the OASP area. Packet Page 161 Item 16 Since the last PFFP update a revised Citywide Transportation Improvement Fee (TIF) has been adopted, incorporating new and expanded citywide transportation projects, some of which affect the allocation of costs to the Orcutt Area. As a result, the PFFP needs to be updated to ensure the provision of appropriate fee amounts for all OASP projects in coordination with the TIF program. The proposed 2018 PFFP update reflects more accurate project estimates and updates costs for projects that have been completed or are nearing completion. DISCUSSION Background The PFFP included four key types of public infrastructure specific to the needs of buildout of the Orcutt Planning Area. These include: 1. Street Improvements (general roadway improvements to perimeter roads such as Tank Farm and Orcutt Roads) 2. Bridges (internal collector roads of the OASP that connect the OASP together) 3. Pedestrian & Bicycle Paths (that interconnect the OASP to citywide pathways) 4. Public Parks & Recreation (new public parks and recreation within the OASP Area) Attachment C shows the 2017 PFFP list (Table 2) of improvement projects included in each of these categories, the gross cost estimate of each project, the OASP fair share of these costs and the final net costs to be allocated by fee to all OASP development rather than to a specific development. Table 7 of Attachment C reflects the 2017 fee structu re for single-family and multi-family units within the OASP. The OASP PFFP acknowledged and recognized that the cost estimates for the fees were estimates only and that certain adjustments would need to be made along the way. Specifically, the PFFP included detailed provisions regarding (i) how PFFP fees would be updated, (ii) the frequency of PFFP fees revisions, (iii) the basis for fee updates, (iv) development projects excluded from paying the updated PFFP fees, (v) when the PFFP fees are due, and (v i) that the fair share is defined for the projects “at the time they were built.” Examples of applicable language in the March 2010 OASP that applied to updates of the PFFP include: • Section 8.5.1 - “[C]hanges are likely to occur in facility plans, land use plans, or cost estimates. When these items are revised, there will be a corresponding change in the fair share cost allocation to each land use in the OASP. Land use and facility changes will result in revisions to the benefit analysis and corresponding cost allocation to each land use. To the extent some projects in the OASP will have been developed and will have paid their fair share as defined at the time they were built, revisions will apply only to future new development.” Packet Page 162 Item 16 • Section 8.5.1 - “As the City will adopt new ordinances and update existing ordinances on an ongoing basis, fees will be adjusted based on actual costs realized after construction bids have been received for public facilities. If actual costs are higher than expected, again, the City will have to increase fees and/or rely on the terms of an acquisition agreement to avoid a financing deficit in future years.” • Section 8.5.2 - “The initial ordinance will reflect fees based on information available at that time. Fees will be adjusted annually or on a more frequent basis to reflect actual costs and current cost estimates.” • Section 9.6 - “Impact fees are due at the time building permits are issued.” These policies are significant with respect to the idea of “vested rights.” Specif ically, under the Subdivision Map Act, an approved vested tentative tract map confers a vested right to proceed with development in substantial compliance with the ordinances, policies, and standards in effect at the time the vesting tentative tract map application is deemed complete. This vested right usually includes the payment of fees in the amount when the application was deemed complete. The application of vested rights in the context of the City’s OASP PFFP program is not black and white, especially given the language cited above. Further discussion on the impact of certain developments within the OASP area having a vested rights status regarding the OASP PFFP is discussed further below under “Minimizing Risk of a Funding Shortfall.” In addition, certain subdivisions in the OASP area were approved prior to the Citywide TIF update which took effect on July 1, 2018.1 The 2018 Citywide TIF update substantially increased the Citywide TIF fee and added some of the OASP PFFP projects into the Citywide T IF program. These approved subdivisions include: Righetti Tract 3063, Jones Tract 3066, Imel Tract 3095, West Creek Tract 3083, Taylor Ranch Tract 3044/Parcel Map SLO 17 -0115, and Pratt Tract 3111/Parcel Map SLO 17-0127. These subdivisions will not be paying the 2018 Citywide TIF fee unless their vesting rights expire. Therefore, the OASP PFFP fee that the approved subdivisions will be paying will be based on the PFFP list that was approved in 2016 instead of the list that omits the projects that were moved to the 2018 Citywide TIF. That ensures that the approved subdivisions still pay their fair share of the projects that have been subsequently moved to the 2018 Citywide TIF. For reference, the PFFP projects that were moved to the Citywide TIF in 2018 inc lude: 1) T-3 – Broad Street/Tank Farm intersection 2) T-4 – Orcutt Road/Johnson intersection 3) T-5 – Broad Street/Prado Road extension (second northbound left turn lane) 1 Please remember that the Citywide TIF and the OASP PFFP fees are two different sets of impact fees, the former being applied on a Citywide basis and the latter applicable to development within the OASP area. Packet Page 163 Item 16 New subdivisions that were not vested prior to July 1, 2018, will pay the new Citywide TIF, so their PFFP list of projects has been updated to exclude those projects that have been moved into the Citywide TIF program. The Orcutt/Tank Farm intersection (T -1) remains in both the PFFP list of projects and in the Citywide TIF program because they ar e two separate projects. The PFFP project is an interim solution that includes a right -turn lane, traffic signal, and elimination of the skew where Orcutt Road comes in to Tank Farm at an angle. The project included in the Citywide TIF program is for a fut ure roundabout at this intersection. In 2017, the latest update to the OASP Public Facilities Financing chapter projected an approximate net of $16.9 million in fair share fees to be allocated to all the property owners. This amount does not include Parkland Acquisition fees attributable to some, but not all, of the OASP properties because some properties dedicate parkland and some need to pay fees to reimburse for property not dedicated. Prior to increasing an existing fee, Section 66016 of the Californ ia Government Code requires the local agency to hold at least one open and public meeting, at which oral or written presentations can be made, as part of a regular scheduled meeting. Notices must be mailed to interested parties, and the fee increase must be approved by ordinance or resolution. 2018 PFFP Update Summary of Changes The 2018 revised PFFP for pre-July 1, 2018 vested subdivisions anticipates an approximate net of $21.4 million in fair share fees to be allocated to all the property owners (Attac hment D). The primary difference between the 2017 and 2018 projections for the pre -July 1, 2018 vested subdivisions is cost increases for the projects based on more current construction costs estimates and bids provided by the property owners. The 2018 rev ised PFFP for post-July 1, 2018 subdivisions anticipates an approximate net of $20.5 million in fair share fees to be allocated to all the property owners (Attachment E). The primary difference between the 2017 and 2018 projections for the post -July 1, 2018 subdivisions are infrastructure cost increases and the removal of certain OASP projects from the PFFP Program that are now included in the citywide TIF program (PFFP Projects T -3, T-4 and T-5). Packet Page 164 Item 16 Tables 1 and 2 compare the changes in the net project cost s for the OASP PFFP between the 2017 approval and the recommended revisions to the 2018 PFFP. Table 1 (1) (1) See Attachment C SFR = Single-Family Residential MFR – Multi-Family Residential Table 2 (2) See Attachment D (3) See Attachment E Since 2010, the City has been increasing the PFFP Fee structure annually with Consumer Price Index (CPI) updates to keep up with inflation. This practice will continue annually u ntil the PFFP projects are completed. Improvement Net Total Cost of the 2017 Adopted PFFP 2017 Adopted SFR Fee 2017 Adopted MFR Fee Streets and Bridges $8,695,995 $9,745 $6,807 Pedestrian-Bicycle $2,147,000 $2,406 $1,681 Parks and Recreation $6,045,714 $6,717 $4,997 Totals $16,888,709 $18,868 $13,485 For Pre-7/1/2018 Vested Subdivisions (2) For Post-7/1/2018 Subdivisions (3) Net Total Cost of the 2018 Proposed PFFP 2018 Proposed SFR Fee 2018 Proposed MFR Fee Improvement Net Total Cost of the 2018 Proposed PFFP 2018 Proposed SFR Fee 2018 Proposed MFR Fee $11,229,995 $12,584 $8,791 Streets and Bridges $10,357,195 $11,606 $8,108 $4,106,000 $4,601 $3,214 Pedestrian- Bicycle $4,106,000 $4,601 $3,214 $6,045,714 $6,717 $4,997 Parks and Recreation $6,045,714 $6,717 $4,997 $21,381,709 $23,902 $17,002 Totals $20,508,909 $22,924 $16,319 26.7% 26.1% Fee Increase 21.5% 21.0% Packet Page 165 Item 16 Finally, it is important to note that even as the OASP PFFP makes assumptions for project costs, over time, fee amounts may change due to factors such as: 1) the actual construction costs of the facilities, 2) more refined cost estimates at building time, 3) further adjustments to Citywide impact fee programs, and 4) outside funding sources such as grants if acquired by the city or others. Future adjustments to the PFFP fees may be warranted to address these changes , as outlined in Section 8.5.1 of the OASP. Cost Changes – Street Improvements and Bridges The 2018 Updated PFFP for pre-July 1, 2018 vested subdivisions (Attachment D) presents cost updates for projects T-1 (Orcutt -Tank Farm Intersection), T-9 (Transit Stops), T-10 (Tank Farm/Righetti Ranch roundabout),T-11 (Orcutt/Ranch House Road Roundabout), T-12 (Bridge A – Ranch House Road), T-13 (Bridge B – Tiburon Way) and T-14 (Bridge C – Righetti Ranch Road) in this category. See Attachment F for conceptual layou t of the streets and bridges. The cost estimate for the Orcutt/Tank Farm intersection improvement (T-1) was increased to $1.6 million to reflect inflation in construction costs from the $930,000 estimate in the original PFFP back in 2010. Estimated costs to complete the transit stops for the OASP (T -9) are ranging closer to $45,000 per stop. Five stops were previously identified as necessary at a cost of $25,000 each. After reviewing transit circulation needs in the area, it was determined that ten stops would need to be constructed. Attachment G shows the location of the proposed transit stops. The Tank Farm Road/Righetti Ranch Road roundabout (T -10) and the Orcutt Road/Ranch House Road roundabout (aka “A” Street) (T -11) have increased from previously estimated costs of $650,000 each to $2.0 million and $1.8 million, respectively. These roundabouts are funded 50% by the Righetti Ranch and West Creek subdivisions respectively, with the remaining 50% of each improvement spread over the entire OASP. The bridge estimates have been updated to reflect current design and construction underway by the Tract 3063 developers (Righetti Ranch, Ambient Communities) and Tract 3083 developers (West Creek, Robbins Reed). These three bridges were estimated in 2017 to cost $4.08 million. Updates for 2018 reflect estimates of $4.55 million for these improvements. Cost Changes - Pedestrian and Bicycle Paths The scope of planned pedestrian and bicycle paths (B-1) throughout the OASP have not changed since the adoption of the Specific Plan, but costs have increased significantly as final project approvals have been granted and significantly higher levels of detail have been completed in engineering and construction plans development. Costs are increasing from earlier esti mates of $841,000 to $2.8 million. Packet Page 166 Item 16 This increase includes inflation in construction costs from the previous estimates, a conservative choice for paving materials to extend longevity and reduce maintenance, and a more refined estimate based on the actual vertical terrain that the paths are traversing versus a two- dimensional path than was previously estimated. The proposed grade separation bridge at Industrial Way continues to use the 2010 Dokken Engineering estimate with a simple adjustment for construction cost index that was reflected in the previous updates. The cost for the bridge across Tank Farm road has certainly increased, but that increase is not reflected in the 2018 PFFP update. The OASP fair share participation percentage of this project is 25%. Funds collected from the OASP for this project will likely be used to leverage grant sources in the future. Attachment H shows the location of PFFP -funded pedestrian and bicycle facilities. No Cost Changes – Parks and Recreation Improvements Current cost estimates for the Parks and Recreation Improvement Fee are $6,045,714. Based on engineering and construction plan development over the past two years, and continuing review of park improvement projects by the Parks and Recreation Commission, these estimates are considered appropriate for the scope of the planned improvements. No changes other than annual CPI adjustments are recommended at this time. Minimizing Risk of a Funding Shortfall As discussed above, when a subdivision is vested, it comes with certain rights that limit the subdivider’s exposure to changes in standards or increases in fees. Although all the vested subdivisions were approved after adoption of the PFFP and the PFFP clearly states that there will be updates to adjust costs, there is the risk that a vested subdivider could challenge the fee increase. To minimize the risk of creating a funding shortfall if a subdivider successfully challenges the increase, any subdivision receiving credit beyond the line item amount listed in the 2017 PFFP will be required to enter into an agreement whereas they agree to cover the potential shortfall in funding. This agreement will not be required if all vested parties have submitted an agreement to the City agreeing to pay the updated PFFP fees. Currently, the City is negotiating such an agreement with Righetti Ranch, LP, since they are the first developers moving forward with building permits in the OASP area and are the ones constructing the Tank Farm roundabout, which they will be seeking dollar for dollar credit against the PFFP transportation fees. Attachment I is a draft PFFP Fee Credit Agreement which minimizing the City’s risk for a potential funding shortfall and requires the developer benefiting from the credit to indemnify the City for any challenge to the City’s updated PFFP fees. Public Engagement On September 18, 2018, City staff met with representatives from each of the vested subdivisions to discuss the revisions to the PFFP. They requested some modifications to the costs in the l ine items, which have been reflected in the attachments to this report. They did not express any opposition to the PFFP update and understand that the updated estimates better reflect actual anticipated costs and thus provide a more reliable method for reimbursement, credits and actual delivery. Letters were mailed out to all the property owners in the OASP area notifying them of the public meeting to be held at the Council meeting. The letter was also sent via e-mail for those owners with e-mail addresses on file. Packet Page 167 Item 16 CONCURRENCES The Public Works Department and the Community Development Department concur with the recommended action. ENVIRONMENTAL REVIEW The Orcutt Area Specific Plan (OASP) and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. Implementation of the Public Facilities Financing Plan (PFFP), including actions such as the proposed 2018 PFFP Update, were anticipated as mitigation measures to secure needed infrastructure in supporting orderly grow th in the OASP Planning Area. The adoption of an updated fee structure for development impacts in the Orcutt Planning Area is covered by the general rule that CEQA applies only to projects which have the potential for causing a potential effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The updating of a fee program does not have any potential to cause significant effects on the environment and the general rule CEQA 15061 (b) (3) exemption applies because all projects included within the fee program have been subject to prior CEQA review in conjunction with plan adoption and/or specific project app rovals and there are no changes to previously studied projects proposed to be funded through the fee program. Even if this was a project under CEQA it would be Categorically Exempt under 15273 (a) (4) (Rates, Tolls, Fares, and Charges). Obtaining funds fo r capital projects, necessary to maintain service within existing services areas are exempt from CEQA. FISCAL IMPACT Adopting the revised fee structure has no impact on the General Fund of the City. The projects included in the OASP PFFP are largely development driven and are the responsibility of the OASP and other development projects. If the OASP is not updated and the project costs not allocated to development the City would need to finance the projects over time via General Fund or grant sources beyond that assumed in the PFFP. Agreements will be put in place to minimize the risk of a funding shortfall due to a vested subdivider successfully challenging the PFFP update. There is no cost to the City for preparing and processing this 2018 Update, as the costs of the update are rolled into the OASP Specific Plan and EIR Reimbursement fee. Packet Page 168 Item 16 ALTERNATIVES 1. Direct staff to re-evaluate one or more of the specific recommendations contained within the 2018 PFFP Update and return to Council with an updated document for consideration. 2. Council may elect to continue this item to provide additional clarifications or information needed to render a decision. Should Council elect this alternative, direction should be provided to staff as to the additional information needed. 3. Elect not to update the OASP PFFP impact fee program. This is not recommended because the PFFP needs to be updated to reflect the revised cost estimates for necessary infrastructure. Attachments: a - Draft Resolution Approving Revisions b - Vicinity Map c - Existing 2017 PFFP List of Projects and Fees d - Pre-7-1-18 Vested Subdivisions PFFP Cost Updates e - Post-7-1-18 Subdivisions PFFP Cost Updates f - Streets and Bridges Map g - Transit Stops Map h - Bicycle Paths Map i - Draft Fee Credit Agreement Packet Page 169 Item 16 R _____ RESOLUTION NO. (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA APPROVING AN UPDATE TO THE ORCUTT AREA SPECIFIC PLAN – PUBLIC FACILITIES FINANCING PLAN WHEREAS, in May 2010 the City Council adopted the Orcutt Area Specific Plan (OASP) to govern development of the Orcutt Planning Area; and WHEREAS, the OASP included a Chapter 8 addressing “Public Facilities Financing”; and WHEREAS, the framework for Chapter 8 of the OASP was a September 23, 2009 “OASP Public Facilities Financing Plan” (PFFP) prepared by Goodwin Consulting Group for the City; and WHEREAS, said PFFP evaluated the needed infrastructure to support development of the Orcutt Planning Area, and established a phasing plan and fee structure to support the development of needed infrastructure on a “pay-as-you-go” basis, essentially securing fees from developing propert ies and concurrently completing infrastructure to support those developing properties ; and WHEREAS, on November 15, 2016 and again on December 12, 2017 the City Council adopted updates to the PFFP prepared for the City by Watson Planning Consultants and Wallace Group, to provide adjustments to the various projects contained in the PFFP, the estimated costs associated with completing those projects, and the apportionment of those costs to the planned developments within the OASP; and WHEREAS, some of the projects in the PFFP are under construction and more accurate cost estimates have been provided for these projects; and WHEREAS, the OASP and PFFP each anticipated the need to periodically update and revise the scope of needed infrastructure and the costs associated with those projects to insure an adequate fee structure is in place ; and WHEREAS, pursuant to California Government Code Section 66016, the City Council held a properly noticed public meeting at their regularly scheduled October 16, 2018, meet ing at which oral and written presentations were made and public testimony was recieved. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Continued Findings. Based on the evidence submitted and considered at its October 16, 2018 public hearing, the City Council makes the following continued findings: 1. The Orcutt Area Specific Plan (OASP) and the OASP Public Facilities Financing Plan (PFFP) were duly approved in May 2010, at which time a PFFP Fee Structure was established that was intended to collect funds from developing properties in the Planning Packet Page 170 Item 16 Resolution No. (2018 Series) Page 2 R _____ Area to be used to complete needed public infrastructure to support the planned growth in the OASP. 2. The 2010 OASP and PFFP anticipated the need to periodically review and update the PFFP Fee Structure as a means to insure development was paying its fair share of new infrastructure needed to serve the developing Planning Area. 3. Since its adoption in May 2010, updates to the PFFP have been completed previously in November 2016 and December 2017. 4. Since May 2010, over 700 residential units have been approved fo r development in the OASP, constituting 2/3rds of the total units expected in the Planning Area. 5. It is timely to provide this update to the PFFP cost estimates and update the PFFP Fee Structure to insure new development fully pays its way in meeting public infrastructure demands they create, in a timely and orderly manner. 6. The purpose of the updated PFFP fees is to further protect public health, safety, and general welfare by providing adequate transportation and park and recreation facilities to satisfy the needs of new development and to mitigate the impacts of new development on the City’s capital facilities and improvements and were contemplated in various policies in the OASP. 7. The updated PFFP fees collected pursuant to this resolution shall be used only to pay for facilities and improvements identified in the PFFP, which is incorporated herein by this reference, and shall not be in lieu of any other fee or tax as may be required by the Municipal Code. 8. There is a reasonable relationship between the types of development on which the PFFP fees are imposed and the use of the PFFP fees and the need for the facilities and improvements. 9. As required by Government Code Section 66001 et seq., there is a reasonable relationship between the amount of the updated PFFP fees and the cost of the facilities and improvements attributable to the developments on which the PFFP fees are imposed. Packet Page 171 Item 16 Resolution No. (2018 Series) Page 3 R _____ SECTION 2. Environmental Review. The Orcutt Area Specific Plan (OASP) and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. Implementation of the Public Facilities Financing Plan (PFFP), including actions such as the 201 8 Update of the PFFP, were anticipated as mitigatio n measures to secure needed infrastructure in supporting orderly growth in the OASP Planning Area. The adoption of an updated fee structure for development impacts in the Orcutt Planning Area is covered by the general rule that CEQA applies only to project s which have the potential for causing a potential effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant e ffect on the environment, the general rule CEQA 16061 (b) (3) exemption applies. Therefore, no further environmental review is required . SECTION 3. Action – Adoption of Resolution. Based on the evidence and findings noted above, the City Council hereby approves the 2018 PFFP fee update as outlined in the staff report. SECTION 4. The Community Development Director is authorized to revise the Public Facilities Financing Plan to reflect the update and administer and implement these fees as provided therein. SECTION 5. The Community Development Director is authorized to execute an agreement with the OASP subdividers in a form acceptable to the City Attorney whereby the vested subdivisions agree to pay the updated 2018 PFFP fee rates and agree to cover the shortfall for any vested subdivisions that do not sign the agreement. SECTION 6. The Mayor and City staff are authorized to take action necessary to carry out the intent of this Resolution. 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 Packet Page 172 Item 16 Resolution No. (2018 Series) Page 4 R _____ APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Page 173 Item 16 Righetti Ranch Approved 2015 Imel Approved 2017 Jones Approved 2015 West Creek Approved 2016 Wathan Castanos Approved 2017 Attachment B Pratt Approved 2018 Packet Page 174 Item 16 Table 2 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Summary of Project-Specific Infrastructure Costs Gross OASP Fair Share Net Ref.Item Total Cost Percentage Total Cost Transportation Street Improvements T1 Orcutt Road/Tank Farm Road 1,111,000$ 100.0%1,111,000$ T2 Broad Street/South St-Santa Barbara Road 707,100$ 1 25.4%179,603$ T3 Broad Street/Tank Farm Rd 599,000$ 50.0%299,500$ T4 Orcutt Road/Johnson Ave 359,300$ 2 100.0%359,300$ T5 Broad Street/Prado Road Extension 528,000$ 3 50.0%264,000$ Second Northbound Left Turn Lane T6 Orcutt Road Widening 383,400$ 4 89.9%344,592$ T7 Bullock Lane Realignment 1,418,000$ 70.0%992,600$ T8 Relocating Hanson Road 1,452,000$ 5 20.0%290,400$ or Reducing the Grade on Orcutt at Hanson Rd T9 Transit Stops (5 at $25,000 each)125,000$ 100.0%125,000$ T10 Tank Farm Roundabout (at Righetti Ranch Road)650,000$ 6 50.0%325,000$ T11 Orcutt Road Roundabout (at "A" Street)650,000$ 7 50.0%325,000$ Subtotal Street Improvements 7,982,800$ 4,615,995$ Orcutt Expansion Area Bridges T12 Bridge A 680,000$ 100.0%680,000$ T13 Bridge B 1,800,000$ 100.0%1,800,000$ T14 Bridge C 1,600,000$ 100.0%1,600,000$ Subtotal Orcutt Expansion Area Bridges 4,080,000$ 4,080,000$ Total Street and Bridges Improvements 12,062,800$ 8,695,995$ Pedestrian and Bicycle Paths B1 Pedestrian and Bicycle Paths 841,000$ 100.0%841,000$ B2 Pedestrian/Bike Overpass at Industrial Way 2,108,000$ 8 50.0%1,054,000$ B3 Bike Path Extension Over Tank Farm Rd 1,008,000$ 9 25.0%252,000$ Total Pedestrian and Bicycle Paths 3,957,000$ 2,147,000$ Total Transportation Improvements 16,019,800$ 10,842,995$ Parks & Recreation P1 Central Neighborhood Park - Main Portion South of Creeks (Righetti)4,800,341$ 10 100.0%4,800,341$ P2 Central Neighborhood Park - Phase 2 -$ 11 100.0%-$ P3 Pocket Park 339,849$ 100.0%339,849$ P4 Linear Park System 813,527$ 100.0%813,527$ P5 Trail Junction Park 91,997$ 12 91,997$ Total Parks & Recreation 6,045,714$ 6,045,714$ Total Project-Specific Infrastructure Costs 22,065,514$ 16,888,709$ Parkland Acquisition Fee (11.80 acres x's $300,000/acre)3,540,000$ 13 100.0%3,540,000$ Totals 25,605,514$ 20,428,709$ 1 Project Cost has been adjusted to reflect actual cost minus SHA Grant on project; adjusted for CPI ($645,557). Funds to reimburse City TIF advance to OASP. 2 2010 project estimate = $300,000, adjusted for ENR Changes (March 2010 to August 2016). 3 Wallace estimate included additional improvements beyond OASP. Participation set at 50% of $528,000. OASP cost adjusted to $264,000. 4 Total project cost set by Council in 2011 at $357,057, adjusted by CPI to 2016 = $383,400. OASP participation set at 89.88% for reimbursement to Orcutt Assoc. 5 OASP participation cost reduced to 20% to reflect potential local match for HSIP program, or for independent work at intersection. 6 Tank Farm Roundabout (T10) is split 50% to Tract 3063 (Righetti Ranch) and 50% divided between all OASP properties. 7 Orcutt Road Roundabout (T11) is split 50% to Tract 3083 (West Creek) and 50% divided between all OASP properties. 8 By previous action of City Council, the full contribution to the Industrial Way bike/pedestrian overcrossing by the OASP is 50%. 9 OASP participation amount adjusted to 25% to reflect future local match of Grant Request. 10 Parks construction and contingency estimates updated; "soft" costs limited to 15% of estimated projects. 11 0.9 acre expansion of Neighborhood Park into Garay omitted from fee schedule. 12 Includes passive park improvements only. Active improvements deleted from the estimate. 13 Acquisition Fee corrected to reflect approved Neighborhood Park design and revised acreage. Sources: The Wallace Group, City of San Luis Obispo, Goodwin Consulting Group, Inc (2009) Updated: City of San Luis Obispo, The Wallace Group, Watson Planning Consultants, Inc. November 15, 2016 PFFP Table 2-4-5-6-7 with Parks Changes - Table2 Applic's 2016 projection Current as of: 11/23/2016Packet Page 175 Item 16 Table 7 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Project-Specific Infrastructure Cost Allocation Summary Capital Pedestrian and Parks &Total Cost Total Facility:Transportation Bicycle Paths Recreation Allocation Facility Costs Benefit Daily Daily Residents Unit:Trip Rate Trip Rate Served Capital Costs:$8,695,995 $2,147,000 $6,045,714 $16,888,709 per Unit Single Family $9,745 $2,406 $6,585 $18,736 $9,311,742 Multi-Family $6,807 $1,681 $4,899 $13,387 $7,576,967 Total $16,888,709 Sources:Orcutt Area Specific Plan (Final, May 2010); City of San Luis Obispo; OASP Public Facilities Financing Plan - Goodwin Consulting Group, Inc. (2009) Updated:Watson Planning Consultants, Inc.November 15, 2016 Cost per Unit PFFP Table 2-4-5-6-7 with Parks Changes - Table 7 Current as of: 11/23/2016Packet Page 176 Item 16 Table 2 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Pre-7/1/2018 Fee Structure for Vested Tracts Summary of Project-Specific Infrastructure Costs 9-18-18 adjusts Gross OASP Fair Share Net Ref.Item Total Cost Percentage Total Cost Transportation Street Improvements T1 Orcutt Road/Tank Farm Road 1,600,000$ 100.0%14 1,600,000$ T2 Broad Street/South St-Santa Barbara Road 707,100$ 1 25.4%179,603$ T3 Broad Street/Tank Farm Rd 599,000$ 50.0%14 299,500$ T4 Orcutt Road/Johnson Ave 359,300$ 2 100.0%14 359,300$ T5 Broad Street/Prado Road Extension 528,000$ 3 50.0%14 264,000$ Second Northbound Left Turn Lane T6 Orcutt Road Widening 383,400$ 4 89.9%344,592$ T7 Bullock Lane Realignment 1,418,000$ 70.0%992,600$ T8 Relocating Hanson Road 1,452,000$ 5 20.0%290,400$ or Reducing the Grade on Orcutt at Hanson Rd T9 Transit Stops (10 at $45,000 each)450,000$ 100.0%450,000$ T10 Tank Farm Roundabout (at Righetti Ranch Road)2,000,000$ 6 50.0%1,000,000$ T11 Orcutt Road Roundabout (at "A" Street)1,800,000$ 7 50.0%900,000$ Subtotal Street Improvements 11,296,800$ 6,679,995$ Orcutt Expansion Area Bridges T12 Bridge A (Ranch House Road)900,000$ 100.0%900,000$ T13 Bridge B (Tiburon Way)1,900,000$ 100.0%1,900,000$ T14 Bridge C (Righetti Ranch Road)1,750,000$ 100.0%1,750,000$ Subtotal Orcutt Expansion Area Bridges 4,550,000$ 4,550,000$ Total Street and Bridges Improvements 15,846,800$ 11,229,995$ Pedestrian and Bicycle Paths B1 Pedestrian and Bicycle Paths 2,800,000$ 100.0%2,800,000$ B2 Pedestrian/Bike Overpass at Industrial Way 2,108,000$ 8 50.0%1,054,000$ B3 Bike Path Extension Over Tank Farm Rd 1,008,000$ 9 25.0%252,000$ Total Pedestrian and Bicycle Paths 5,916,000$ 4,106,000$ Total Transportation Improvements 21,762,800$ 15,335,995$ Parks & Recreation P1 Central Neighborhood Park - Main Portion South of Creeks (Righetti)4,800,341$ 10 100.0%4,800,341$ P2 Central Neighborhood Park - Phase 2 -$ 11 100.0%-$ P3 Pocket Park 339,849$ 100.0%339,849$ P4 Linear Park System 813,527$ 100.0%813,527$ P5 Trail Junction Park 91,997$ 12 91,997$ Total Parks & Recreation 6,045,714$ 6,045,714$ Total Project-Specific Infrastructure Costs 27,808,514$ 21,381,709$ Parkland Acquisition Fee (11.80 acres x's $300,000/acre)3,540,000$ 13 100.0%3,540,000$ Totals 31,348,514$ 24,921,709$ 1 Project Cost has been adjusted to reflect actual cost minus SHA Grant on project; adjusted for CPI ($645,557). Funds to reimburse City TIF advance to OASP. 2 2010 project estimate = $300,000, adjusted for ENR Changes (March 2010 to August 2016). 3 Wallace estimate included additional improvements beyond OASP. Participation set at 50% of $528,000. OASP cost adjusted to $264,000. 4 Total project cost set by Council in 2011 at $357,057, adjusted by CPI to 2016 = $383,400. OASP participation set at 89.88% for reimbursement to Orcutt Assoc. 5 OASP participation cost reduced to 20% to reflect potential local match for HSIP program, or for independent work at intersection. 6 Tank Farm Roundabout (T10) is split 50% to Tract 3063 (Righetti Ranch) and 50% divided between all OASP properties. 7 Orcutt Road Roundabout (T11) is split 50% to Tract 3083 (West Creek) and 50% divided between all OASP properties. 8 By previous action of City Council, the full contribution to the Industrial Way bike/pedestrian overcrossing by the OASP is 50%. 9 OASP participation amount adjusted to 25% to reflect future local match of Grant Request. 10 Parks construction and contingency estimates updated; "soft" costs limited to 15% of estimated projects. 11 0.9 acre expansion of Neighborhood Park into Garay omitted from fee schedule. 12 Includes passive park improvements only. Active improvements deleted from the estimate. 13 Acquisition Fee corrected to reflect approved Neighborhood Park design and revised acreage. 14 Vested projects' fair share is 100% and they will pay old Citywide TIF. Non-vested projects' fair share is 0% and they will pay current Citywide TIF. Sources: The Wallace Group, City of San Luis Obispo, Goodwin Consulting Group, Inc (2009) Updated: City of San Luis Obispo, The Wallace Group, Watson Planning Consultants, Inc. September 18, 2018 DRAFT PFFP Table 2-4-5-6-7 dd Alt Vested 9-18-18 - Table2 Vested Tracts 2018 Current as of: 9/19/2018Packet Page 177 Item 16 Table 4 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Pre-7/1/2018 Fee Structure for Vested Tracts Cost Allocation Table Transportation Net Daily Total Percent Total Cost per Land Use Units Acres Trip Rate Trips Allocation Costs Unit Cost $11,229,995 per Unit Single Family 497 87.4 9.09 4,518 55.69%$6,254,333 $12,584 Multi-Family 566 25.9 6.35 3,594 44.31%$4,975,662 $8,791 Total 1063 113.3 8,112 100%$11,229,995 Sources:Orcutt Area Specific Plan (Final, May 2010); City of San Luis Obispo; CA Department of Finance; OASP Public Facilities Financing Plan - Goodwin Consulting Group, Inc. (2009) Updated:Watson Planning Consultants, Inc.September 18, 2018 DRAFT PFFP Table 2-4-5-6-7 dd Alt Vested 9-18-18 - Table 4 Current as of: 9/19/2018Packet Page 178 Item 16 Table 5 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Pre-7/1/2018 Fee Structure for Vested Tracts Cost Allocation Table Pedestrian and Bicycle Paths Net Daily Total Percent Total Cost per Land Use Units Acres Trip Rate Trips Allocation Costs Unit Cost $4,106,000 per Unit Single Family 497 87.4 9.09 4,518 55.69%$2,286,759 $4,601 Multi-Family 566 25.9 6.35 3,594 44.31%$1,819,241 $3,214 Total 1063 113.3 8,112 100%$4,106,000 Sources:Orcutt Area Specific Plan (Final, May 2010); City of San Luis Obispo; CA Department of Finance; OASP Public Facilities Financing Plan - Goodwin Consulting Group, Inc. (2009) Updated:Watson Planning Consultants, Inc.September 18, 2018 DRAFT PFFP Table 2-4-5-6-7 dd Alt Vested 9-18-18 - Table 5 Current as of: 9/19/2018Packet Page 179 Item 16 Table 6 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Pre-7/1/2018 Fee Structure for Vested Tracts Cost Allocation Table Parks & Recreation Total Net Residents Residents Percent Total Cost per Land Use Units Acres Served Served Allocation Costs Unit Cost $6,045,714 per Unit Single Family 497 87.4 2.46 1,223 54.14%$3,272,941 $6,585 Multi-Family 566 25.9 1.83 1,036 45.86%$2,772,773 $4,899 Total 1063 113.3 2,258 100%$6,045,714 Sources:Orcutt Area Specific Plan (Final, May 2010); City of San Luis Obispo; CA Department of Finance; OASP Public Facilities Financing Plan - Goodwin Consulting Group, Inc. (2009) Updated:Watson Planning Consultants, Inc.Pre-7/1/2018 Fee Structure for Vested Tracts PFFP Table 2-4-5-6-7 dd Alt Vested 9-18-18 - Table 6 Current as of: 9/19/2018Packet Page 180 Item 16 Table 7 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Pre-7/1/2018 Fee Structure for Vested Tracts Project-Specific Infrastructure Cost Allocation Summary Capital Pedestrian and Parks &Total Cost Total Facility:Transportation Bicycle Paths Recreation Allocation Facility Costs Benefit Daily Daily Residents Unit:Trip Rate Trip Rate Served Capital Costs:$11,229,995 $4,106,000 $6,045,714 $21,381,709 per Unit Single Family $12,584 $4,601 $6,585 $23,771 $11,814,033 Multi-Family $8,791 $3,214 $4,899 $16,904 $9,567,676 Total $21,381,709 Sources:Orcutt Area Specific Plan (Final, May 2010); City of San Luis Obispo; OASP Public Facilities Financing Plan - Goodwin Consulting Group, Inc. (2009) Updated:Watson Planning Consultants, Inc.September 18, 2018 DRAFT Cost per Unit PFFP Table 2-4-5-6-7 dd Alt Vested 9-18-18 - Table 7 Current as of: 9/19/2018Packet Page 181 Item 16 Table 2 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Post-7/1/2018 Fee Structure for maps and developments Summary of Project-Specific Infrastructure Costs 9-18-18 adjusts Gross OASP Fair Share Net Ref.Item Total Cost Percentage Total Cost Transportation Street Improvements T1 Orcutt Road/Tank Farm Road 1,600,000$ 100.0%1,600,000$ T2 Broad Street/South St-Santa Barbara Road 707,100$ 1 25.4%179,603$ T3 Broad Street/Tank Farm Rd 599,000$ moved to City-wide TIF 14 -$ T4 Orcutt Road/Johnson Ave 359,300$ 2 moved to City-wide TIF 14 -$ T5 Broad Street/Prado Road Extension 528,000$ 3 moved to City-wide TIF 14 -$ Second Northbound Left Turn Lane T6 Orcutt Road Widening 383,400$ 4 89.9%344,592$ T7 Bullock Lane Realignment 1,418,000$ 70.0%992,600$ T8 Relocating Hanson Road 1,452,000$ 5 20.0%290,400$ or Reducing the Grade on Orcutt at Hanson Rd T9 Transit Stops (10 at $45,000 each)500,000$ 100.0%500,000$ T10 Tank Farm Roundabout (at Righetti Ranch Road)2,000,000$ 6 50.0%1,000,000$ T11 Orcutt Road Roundabout (at "A" Street)1,800,000$ 7 50.0%900,000$ Subtotal Street Improvements 11,346,800$ 5,807,195$ Orcutt Expansion Area Bridges T12 Bridge A (Ranch House Road)900,000$ 100.0%900,000$ T13 Bridge B (Tiburon Way)1,900,000$ 100.0%1,900,000$ T14 Bridge C (Righetti Ranch Road)1,750,000$ 100.0%1,750,000$ Subtotal Orcutt Expansion Area Bridges 4,550,000$ 4,550,000$ Total Street and Bridges Improvements 15,896,800$ 10,357,195$ Pedestrian and Bicycle Paths B1 Pedestrian and Bicycle Paths 2,800,000$ 100.0%2,800,000$ B2 Pedestrian/Bike Overpass at Industrial Way 2,108,000$ 8 50.0%1,054,000$ B3 Bike Path Extension Over Tank Farm Rd 1,008,000$ 9 25.0%252,000$ Total Pedestrian and Bicycle Paths 5,916,000$ 4,106,000$ Total Transportation Improvements 21,812,800$ 14,463,195$ Parks & Recreation P1 Central Neighborhood Park - Main Portion South of Creeks (Righetti)4,800,341$ 10 100.0%4,800,341$ P2 Central Neighborhood Park - Phase 2 -$ 11 100.0%-$ P3 Pocket Park 339,849$ 100.0%339,849$ P4 Linear Park System 813,527$ 100.0%813,527$ P5 Trail Junction Park 91,997$ 12 91,997$ Total Parks & Recreation 6,045,714$ 6,045,714$ Total Project-Specific Infrastructure Costs 27,858,514$ 20,508,909$ Parkland Acquisition Fee (11.80 acres x's $300,000/acre)3,540,000$ 13 100.0%3,540,000$ Totals 31,398,514$ 24,048,909$ 1 Project Cost has been adjusted to reflect actual cost minus SHA Grant on project; adjusted for CPI ($645,557). Funds to reimburse City TIF advance to OASP. 2 2010 project estimate = $300,000, adjusted for ENR Changes (March 2010 to August 2016). 3 Wallace estimate included additional improvements beyond OASP. Participation set at 50% of $528,000. OASP cost adjusted to $264,000. 4 Total project cost set by Council in 2011 at $357,057, adjusted by CPI to 2016 = $383,400. OASP participation set at 89.88% for reimbursement to Orcutt Assoc. 5 OASP participation cost reduced to 20% to reflect potential local match for HSIP program, or for independent work at intersection. 6 Tank Farm Roundabout (T10) is split 50% to Tract 3063 (Righetti Ranch) and 50% divided between all OASP properties. 7 Orcutt Road Roundabout (T11) is split 50% to Tract 3083 (West Creek) and 50% divided between all OASP properties. 8 By previous action of City Council, the full contribution to the Industrial Way bike/pedestrian overcrossing by the OASP is 50%. 9 OASP participation amount adjusted to 25% to reflect future local match of Grant Request. 10 Parks construction and contingency estimates updated; "soft" costs limited to 15% of estimated projects. 11 0.9 acre expansion of Neighborhood Park into Garay omitted from fee schedule. 12 Includes passive park improvements only. Active improvements deleted from the estimate. 13 Acquisition Fee corrected to reflect approved Neighborhood Park design and revised acreage. 14 Vested projects' fair share is 100% and they will pay old Citywide TIF. Non-vested projects' fair share is 0% and they will pay current Citywide TIF. Sources: The Wallace Group, City of San Luis Obispo, Goodwin Consulting Group, Inc (2009) Updated: City of San Luis Obispo, The Wallace Group, Watson Planning Consultants, Inc. September 18, 2018 DRAFT PFFP Table 2-4-5-6-7 dd Alt Non-Vested 9-18-18 - Table2 Non-Vested Current as of: 9/19/2018Packet Page 182 Item 16 Table 4 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Post-7/1/2018 Fee Structure for maps and developments Cost Allocation Table Transportation Net Daily Total Percent Total Cost per Land Use Units Acres Trip Rate Trips Allocation Costs Unit Cost $10,357,195 per Unit Single Family 497 87.4 9.09 4,518 55.69%$5,768,244 $11,606 Multi-Family 566 25.9 6.35 3,594 44.31%$4,588,952 $8,108 Total 1063 113.3 8,112 100%$10,357,195 Sources:Orcutt Area Specific Plan (Final, May 2010); City of San Luis Obispo; CA Department of Finance; OASP Public Facilities Financing Plan - Goodwin Consulting Group, Inc. (2009) Updated:Watson Planning Consultants, Inc.September 18, 2018 DRAFT PFFP Table 2-4-5-6-7 dd Alt Non-Vested 9-18-18 - Table 4 Current as of: 9/19/2018Packet Page 183 Item 16 Table 5 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Post-7/1/2018 Fee Structure for maps and developments Cost Allocation Table Pedestrian and Bicycle Paths Net Daily Total Percent Total Cost per Land Use Units Acres Trip Rate Trips Allocation Costs Unit Cost $4,106,000 per Unit Single Family 497 87.4 9.09 4,518 55.69%$2,286,759 $4,601 Multi-Family 566 25.9 6.35 3,594 44.31%$1,819,241 $3,214 Total 1063 113.3 8,112 100%$4,106,000 Sources:Orcutt Area Specific Plan (Final, May 2010); City of San Luis Obispo; CA Department of Finance; OASP Public Facilities Financing Plan - Goodwin Consulting Group, Inc. (2009) Updated:Watson Planning Consultants, Inc.September 18, 2018 DRAFT PFFP Table 2-4-5-6-7 dd Alt Non-Vested 9-18-18 - Table 5 Current as of: 9/19/2018Packet Page 184 Item 16 Table 6 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Post-7/1/2018 Fee Structure for maps and developments Cost Allocation Table Parks & Recreation Total Net Residents Residents Percent Total Cost per Land Use Units Acres Served Served Allocation Costs Unit Cost $6,045,714 per Unit Single Family 497 87.4 2.46 1,223 54.14%$3,272,941 $6,585 Multi-Family 566 25.9 1.83 1,036 45.86%$2,772,773 $4,899 Total 1063 113.3 2,258 100%$6,045,714 Sources:Orcutt Area Specific Plan (Final, May 2010); City of San Luis Obispo; CA Department of Finance; OASP Public Facilities Financing Plan - Goodwin Consulting Group, Inc. (2009) Updated:Watson Planning Consultants, Inc.September 18, 2018 DRAFT PFFP Table 2-4-5-6-7 dd Alt Non-Vested 9-18-18 - Table 6 Current as of: 9/19/2018Packet Page 185 Item 16 Table 7 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Post-7/1/2018 Fee Structure for maps and developments Project-Specific Infrastructure Cost Allocation Summary Capital Pedestrian and Parks &Total Cost Total Facility:Transportation Bicycle Paths Recreation Allocation Facility Costs Benefit Daily Daily Residents Unit:Trip Rate Trip Rate Served Capital Costs:$10,357,195 $4,106,000 $6,045,714 $20,508,909 per Unit Single Family $11,606 $4,601 $6,585 $22,793 $11,327,944 Multi-Family $8,108 $3,214 $4,899 $16,221 $9,180,965 Total $20,508,909 Sources:Orcutt Area Specific Plan (Final, May 2010); City of San Luis Obispo; OASP Public Facilities Financing Plan - Goodwin Consulting Group, Inc. (2009) Updated:Watson Planning Consultants, Inc.September 18, 2018 DRAFT Cost per Unit PFFP Table 2-4-5-6-7 dd Alt Non-Vested 9-18-18 - Table 7 Current as of: 9/19/2018Packet Page 186 Item 16 X X X X X X X X X XXXXXXXXXX XXXYIELD 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 RIGHETTI RANCH TRACT 3063 PHASE II RIGHETTI RANCH TRACT 3063 PHASE I RIGHETTI RANCH TRACT 3063 PHASE III TAYLOR RANCH TRACT 3044 JONES RANCH TRACT 3066 WEST CREEK TRACT 3083 IMEL RANCH TRACT 3095 GARAY FIALA JONES HOMESTEAD P. TAYLOR RIGHETTI RANCH ROAD RIGHETTI RANCH ROADTIBURON WAYPRATTTRACT 3111EVANSANDERSONPRATTNEIGHBORHOOD PARKGARNEYRANCH HOUSE ROAD ORCUTT ROAD TIBURON WAYTANK FARM ROADORCUTT ROADJ O H N S O N A V ETANGLEWOOD CERRO CABRILLOROCK GARDEN LANE ROCK GARDEN LANEQUARRY CTRANC H H O U S E R O A D TWIN CREEK ROAD HILLSIDE DRIVE BERNARDO DRIVE BETTENFORD DRIVETWIN CREEK ROADHANSEN LANELEDY ROAD PARSONS WAY WEST DETENTION BASIN ARBORS DETENTION BASIN SANITARY SEWER RECYCLED WATER STORM DRAIN WATER DRY UTILITY LEGEND TANGLEWOOD CR E E K BARRANCA CR E E K BARRAN C A C R E E K NORTH TRIBUTARYCROTALO CREEKSE T RI B U T A R Y HANSEN CREEKHANSEN CREEK RIGHETTI HILL OPEN SPACE PARSONS HOMESTEAD BULLOCK LANE Packet Page 187 Item 16 X X X X X X XXXXXXXX XXYIELD RIGHETTI RANCH TRACT 3063 PHASE II RIGHETTI RANCH TRACT 3063 PHASE I RIGHETTI RANCH TRACT 3063 PHASE III TAYLOR RANCH TRACT 3044 JONES RANCH TRACT 3066 WEST CREEK TRACT 3083 IMEL RANCH TRACT 3095 GARAY FIALA JONES HOMESTEAD P. TAYLOR RIGHETTI RANCH ROAD RIGHETTI RANCH ROADTIBURON WAYPRATTTRACT 3111EVANSANDERSONPRATTNEIGHBORHOOD PARKGARNEYRANCH HOUSE ROAD ORCUTT ROAD TIBURON WAYTANK FARM ROADORCUTT ROADJ O H N S O N A V ETANGLEWOOD CERRO CABRILLOROCK GARDEN LANE ROCK GARDEN LANEQUARRY CTRANC H H O U S E R O A D TWIN CREEK ROAD HILLSIDE DRIVE BERNARDO DRIVE BETTENFORD DRIVETWIN CREEK ROADHANSEN LANELEDY ROAD PARSONS WAY WEST DETENTION BASIN ARBORS DETENTION BASINTANGLEWOOD CR E E K BARRANCA CR E E K BARRAN C A C R E E K NORTH TRIBUTARYCROTALO CREEKSE T RI B U T A R Y HANSEN CREEKHANSEN CREEK RIGHETTI HILL OPEN SPACE PARSONS HOMESTEAD BULLOCK LANE EXITISTING ARBORS DEVELOPMENT PFFP BUS STOPS IN OASP AREA ** * * * * * * ** * BUS STOP Packet Page 188 Item 16 X X X X X X XXXXXXXX XXYIELD RIGHETTI RANCH TRACT 3063 PHASE II RIGHETTI RANCH TRACT 3063 PHASE I RIGHETTI RANCH TRACT 3063 PHASE III TAYLOR RANCH TRACT 3044 JONES RANCH TRACT 3066 WEST CREEK TRACT 3083 IMEL RANCH TRACT 3095 GARAY FIALA JONES HOMESTEAD P. TAYLOR RIGHETTI RANCH ROAD RIGHETTI RANCH ROADTIBURON WAYPRATTTRACT 3111EVANSANDERSONPRATTNEIGHBORHOOD PARKGARNEYRANCH HOUSE ROAD ORCUTT ROAD TIBURON WAYTANK FARM ROADORCUTT ROADJ O H N S O N A V ETANGLEWOOD CERRO CABRILLOROCK GARDEN LANE ROCK GARDEN LANEQUARRY CTRANC H H O U S E R O A D TWIN CREEK ROAD HILLSIDE DRIVE BERNARDO DRIVE BETTENFORD DRIVETWIN CREEK ROADHANSEN LANELEDY ROAD PARSONS WAY WEST DETENTION BASIN ARBORS DETENTION BASINTANGLEWOOD CR E E K BARRANCA CR E E K BARRAN C A C R E E K NORTH TRIBUTARYCROTALO CREEKSE T RI B U T A R Y HANSEN CREEKHANSEN CREEK RIGHETTI HILL OPEN SPACE PARSONS HOMESTEAD BULLOCK LANE EXITISTING ARBORS DEVELOPMENT PFFP BUS STOPS IN OASP AREA ** * * * * * * ** * BUS STOP Packet Page 189 Item 16 1 1521860.1 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of San Luis Obispo Attn: City Clerk 990 Palm Street San Luis Obispo, CA 93401 No fee pursuant to Government Code § 6103 No Documentary Transfer Tax per R&T Code § 11922 No Recording Fee per Government Code § 27383 AGREEMENT (PFFP – Tank Farm Road Round-about) This Agreement (“Agreement”) is entered into this _____ day of __________________, 201__ (the “Effective Date”), by and between the City of San Luis Obispo, a municipal corporation and charter city (“CITY”) and Righetti Ranch L.P., a Delaware limited partnership (“DEVELOPER”). The CITY and DEVELOPER are sometimes hereinafter referred to individually as a “party” and collectively as “parties.” RECITALS WHEREAS, DEVELOPER is the owner of that certain real property in the City of San Luis Obispo, California commonly known as Righetti Ranch Tract 3063 (“Righetti Ranch”), Jones Ranch Tract 3066 (“Jones Ranch”), Imel Tract 3095 (“Imel”), and the Pratt subdivisions consisting of Parcel Map SLO 17-0127, Tract 3111, and Parcel Map SLO 18-0036 (collectively Pratt”), all of which are hereinafter collectively referred to as the “Property” and are legally described in Exhibit A attached hereto. WHEREAS, DEVELOPER is currently developing the Righetti Ranch and Jones Ranch. The development of Righetti Ranch and Jones Ranch is referred to hereinafter as the “Project” and consists of a total of 370 residential lots and other comme rcial property and amenity space; and WHEREAS, the Property is subject to a Public Facilities Financing Plan (“PFFP”) established in 2010 as part of the Orcutt Area Specific Plan (“OASP”) which provides for the collection of fees and the award of credits to facilitate the financing and construction of certain public facilities within the OASP area. The fee was updated in 2016 (the “2016 PFFP Update”) to account for current cost estimates (the old fee was based on 2007 estimates) and to include two new Packet Page 190 Item 16 2 1521860.1 roundabouts in the list of projects. The 2016 PFFP Update lists the PFFP Transportation fee at $12,740 per single-family residence and is adjusted annually by CPI. The fees established under the 2016 PFFP Update were based on the estimated costs of constructing various transportation improvements within the OASP area. The 2016 PFFP Update includes the following transportation infrastructure improvement projects and cost estimates: 1. T-10: Tank Farm Roundabout, located at the intersection of Tank Farm Road and Righetti Ranch Road in the City (the “Round-about”) $650,000, of which only 50% ($325,000) is eligible for PFFP credit 2. T-1: Orcutt Road/Tank Farm Road Street Improvements, $1,111,000; 3. T-13: Orcutt Area Bridge B, $1,800,000; 4. T-14: Orcutt Area Bridge C, $1,600,000; 5. B-1: 60% of the total Pedestrian Bicycle Paths, $841,000; and 6. T-9: Transit Stops (5 total), $25,000 per stop. Items 1 through 6 above are hereinafter referred to as the “Transportation Improvements.” The 2016 PFFP Update estimated a total construction cost of$6,127,000 for these Transportation Improvements, of which $5,802,000 is eligible for fee credit. Consequently, if DEVELOPER completes the construction of each of these Transportation Improvements, Developer is entitled to fee credits for the costs of construction of each of such improvements ; and. WHEREAS, the actual costs of the DEVELOPER to install the Round-about are now estimated at $2,000,000, which is One Million Three Hundred Fifty Thousand Dollars ($1,350,000) higher than estimated in the 2016 PFFP Update (the “Increased Round-about Costs”); and WHEREAS, DEVELOPER’s fair share contribution to the Round-about is fifty percent (50%) according to the 2016 PFFP Update, which equates to Six Hundred and Seventy Five Thousand Dollars ($675,000) of the Increased Round-about Costs; and WHEREAS… (add similar language as above two paragraphs for the increased ped and bike path costs and increased transit stop costs); and WHEREAS, the Increased Round-about Costs, Increased Pedestrian Bicycle Path Costs, and Increased Transit Stop Costs are collectively referred to as the “Increased Costs”; and WHEREAS, DEVELOPER desires to obtain a fee credit for Increased Costs against the Project’s PFFP Transportation fees for t he costs of installing Transportation Improvements; and WHEREAS, the Increased Costs are not part of the 2016 PFFP Update transportation fees which means that total payments into the PFFP system will be deficient by the amount of the Increased Packet Page 191 Item 16 3 1521860.1 Costs unless the PFFP fees are modified to reflect the actual costs of construction and there are no successful challenges to any PFFP fee modifications; and WHEREAS, by this Agreement, CITY and DEVELOPER desire to establish a mechanism whereby CITY agrees to (1) consider amendments to the PFFP fees to include the Increased Costs and other modifications deemed appropriate by the City; (2) issue PFFP Fee Credits at the modified rate; and (3) establish a mechanism whereby CITY has the right to recapture any loss es from DEVELOPER resulting from the Increased Costs due to a successful argument that the following projects within the OASP area are vested under the 2016PFFP fee and therefore, not subject to the modified rate:, specifically, the Taylor project (Tract 3044 and Parcel Map SLO 17-0115; the “Taylor Project”). and the West Creek Project (Tract No. 3083; the “West Creek Project”). AGREEMENT NOW THEREFORE, for valuable consideration, the receipt of which is hereby acknowledged, CITY and DEVELOPER hereby agree as follows: 1. Recitals. The above recitals are true and correct and are hereby incorporated into this Agreement as though set forth in full. 2. Fee Increase; Protest Waiver. The CITY shall, as soon as practically possible, schedule a hearing for the City Council to consider an update to the PFFP fees for the OASP (the “2018 PFFP Update”) area to reflect the Increased Costs and any other amendments CITY deems necessary or advisable consistent with the OASP Specific Plan (the “2018 PFFP Updated Fees”). The 2018 Updated PFFP Fees may include, but are not limited to, increases in Transportation PFFP fees, Park Improvement fees, and OASP Plan Preparation fees. DEVELOPER hereby waives any right to protest the Updated PFFP Fees as against any lot within the Property. Such waiver includes any right based on vested rights. 3. Fee Credits. CITY shall grant fee credits for the Project at the 2016 PFFP Update rate for any PFFP projects constructed by DEVELOPER. Until the 2018 PFFP Updated Fees are approved by the City Council, the maximum transportation PFFP fee credit for the Project under the 2016 PFFP Update shall not exceed $5,802,000 which equals the total amount of reimbursable Transportation Improvements listed in the 2016 PFFP Update, provided that all of the follo wing conditions are met: a. Appropriate securities have been submitted by DEVELOPER to guarantee completion of the Transportation Improvements; and b. Appropriate documentation is submitted by DEVELOPER and approved by CITY verifying costs expended by DEVELOPER to design and construct the Transportation Improvements Packet Page 192 Item 16 4 1521860.1 Upon the effective date of the 2018 PFFP Update, DEVELOPER shall receive a fee credit in the amount of such updated fees as against DEVELOPER’s documented costs of construction of the Transportation Improvements, not to exceed the amounts allocated in the 2018 PFFP Update for the Transportation Improvements. DEVELOPER acknowledges and agrees that any PFFP fee credits for the Project that are granted by CITY prior to approval and the effective date of the 2018 Updated PFFP Fees, if any, including the fee credits that have been already issued or approved for eighty-five (85) lots within Tract 3063, will be retroactively adjusted to reflect the 2018 Updated PFFP Fees so as not to unfairly distribute fee increases to the undeveloped lots. Simply by way of example, if the Updated 2018 PFFP Fees equals $17,185 per residence and eighty-five (85) building permits are issued prior to the effective date of the 2018 Updated PFFP Fees, the total fee credit applied to the Project will be automatically adjusted from the 2016 PFFP Update fee rate to the 2018 Updated PFFP Fee rate of $17,185 4. Reimbursement. If the owners of the Taylor Property or the West Creek Property successfully challenge, including the expiration of all appeals, the imposition of the Updated PFFP Fees onto either of those developments, DEVELOPER agrees to pay to the CITY as follows: The number of residential units for each development which successfully challenged the fee multiplied by the difference between the 2016 PFFP Update transportation fee and the 2018 PFFP Updated Fees (the “Differential Payment”) By way of example, the current PFFP Transportation fee for a single -family unit is $12,740 per unit. If the Updated PFFP Fees result s in an increase in $4,445 per single family residence and if CITY is unable to impose the 2018 Updated PFFP Fees on either the Taylor or West Creek projects due to vested rights, then DEVELOPER would owe CITY $4,445 per residential unit that is constructed in such developments in order to offset the amount the CITY credited DEVELOPER via the PFFP Fee Credit. If DEVELOPER does not timely pay such amounts to the CITY upon written demand, DEVELOPER agrees that the CITY can add a pro-rata share of such amount to each undeveloped lot within the Property. 5. Further Security. CITY and DEVELOPER acknowledge that the reimbursement obligation set forth in Section 4 above is dependent on the timing of when construction and building permits are issued for such projects and that, if construction of the Project moves faster than the Taylor Project or the West Creek Project, an as applied challenge to the 2018 Updated PFFP Fees may not be known until after all or a substantial amount of building permits or certificates of occupancy have been issued for the Project. In Packet Page 193 Item 16 5 1521860.1 order to account for this contingency, in the event building permits are issued for one- hundred fifty (150) residential lots on the Property and no building permits have been issued for residential lots on either the Taylor Project or the West Creek Project, the DEVELOPER shall provide CITY with a payment bond, in a form subject to the approval of the City Attorney, for the estimated amount of the total Differential Payment as estimated by CITY’s Engineer. The total amount of the bond for the Differential Payment shall take into account if either the West Creek Project or the Taylor Project have paid the 2018 Updated PFFP Fees. The bond may be reduced as payments are made subject to the approval of the CITY Engineer, such approval shall not be unreasonably withheld or delayed. Once the full amount of the Differential Payment has been paid, the bond may be released in full. Indemnity. DEVELOPER agrees to indemnify, defend (with counsel acceptable to CITY) and hold CITY, its officials, agents, employees and contractors harmle ss from any expense (including attorney’s fees), liability or claim, injury, damage or expense which may arise or is any way related to a challenge of the 2018 PFFP Updated Fees to cover the Increased Costs, including,by the owners of the Taylor Project or the West Creek Project. DEVELOPER shall not be liable for any expense, liability or claim for death, injury, loss, damage or expense to persons or property which may arise from the sole negligence or willful misconduct of CITY, officials, agents, employe es and contractors. The CITY shall give DEVELOPER a written notice of any challenge by either the owners of the Taylor Project or the West Creek Project to the increase in PFFP fees to cover the Increased Costs within ten (10) calendar days of filing of a n action. CITY’s failure to notify DEVELOPER of such challenge shall not affect or otherwise modify DEVELOPER’s obligations under this Agreement. The City will not settle any challenge or litigation related to any challenge without the consent of DEVELOPER, such consent shall not be unreasonable withheld or delayed. 6. Waiver and Release. DEVELOPER acknowledges and agrees that the payment/credit arrangement set forth in this Agreement is a reasonable and equitable way to manage the funding of construction and reimbursement of costs for the Transportation Improvements in light of each project’s fair share responsibilities for infrastructure within the OASP area, each project’s vesting status, timing of project approvals, increases in construction costs, etc. As a result, DEVELOPER on itself behalf, or on behalf of its successors and assigns hereby remises, releases and forever discharges CITY from any and all claims, suits, causes of actions, charges, demands, and liability whatsoever, including any inverse condemnation and Fifth (5th) Amendment takings claims,1 related only to City’s imposition of conditions of approval on the Project that require the construction of the Transportation Improvements. 1 DEVELOPER and CITY acknowledge that these causes of action relate to claims under the following line of cases: Nollan v. Cal. Coastal Commission (1987) 483 U.S. 825, 834-35; Dolan v. City of Tigard (1994) Packet Page 194 Item 16 6 1521860.1 7. Entire Agreement/Amendment. This Agreement represents the entire integrated agreement between the CITY and DEVELOPER regarding the granting of the PFFP Fee Credit for the Increased Costs. This Agreement may be amended only by a written instrument signed by both CITY and DEVELOPER. 8. Governing Law and Venue. The interpretation and implementation of this Agreement shall be governed by the law of California, except for those provisions preempted by federal law. However, the laws of the State of California shall not be applied to the extent that they would require or allow the court to use the laws of another state or jurisdiction. The parties agree that all actions or proceeding arising in connection with the Agreement shall be tried and litigated only in the County of San Luis Obis po or the United States District Court for the Central District of California. 9. Severability. Invalidation of any provision contained herein or the application thereof to any person or entity by judgment or court order shall in no way affect any of the other covenants, conditions, restrictions, or provisions hereof, or the application thereof to any other person or entity, and the same shall remain in full force and effect. 10. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 11. Notices. All notices, demands, invoices, or written communications to the parties required or permitted hereunder shall be in writing and delivered personally or by U.S. mail, postage prepaid, to the following addresses or such other address as the parties may designate in accordance with this section: CITY Director Public Works 919 Palm Street San Luis Obispo, CA 93401 512 U.S. 374, 391; Associated Home Builders, Inc. v. City of Walnut Creek (1971) 4 Cal.3d 633, 644; Ayres v. City Council (1949) 34 Cal. 2d 31, 42.); v. Culver City (1996) 12 Cal.4th 854, 864 Packet Page 195 Item 16 7 1521860.1 With a copy to: City Attorney 990 Palm Street San Luis Obispo, CA 93401 DEVELOPER Righetti Ranch, L.P. 979 Osos Street, Suite E San Luis Obispo, CA 93401 Attn: Travis Fuentez Phone: (805) 573-0401 Ambient Communities 179 Calle Magdalena, Suite 201 Encinitas, CA 92024 Attn: Rob Anselmo Phone: (619) 890-2349 12. Interpretation/Ambiguity. This Agreement negotiated by the Parties, with the advice and assistance of their respective counsel, and shall not be construed in favor of or against either Party, regardless of who may have drafted it or any of its terms. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. 13. Attorney’s Fees. In the event that any suit or action is instituted under or in relation to this Agreement, including without limitation to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals. 14. Assignment. DEVELOPER shall not assign, transfer or convey any of its rights, duties or obligations under this Agreement without the prior written approval of CITY; provided however, that the DEVELOPER shall be able to assign any credits issued against the PFFP fees to any buyer of lots in the OASP area. CITY shall not unreasonably withhold approval of any assignment. Any other assignment shall be null and void. 15. Authority to Execute. Both CITY and DEVELOPER do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. 16. Counterparts. The parties agree that this Agreement may be executed in two or more counterparts, each of which shall constitute and original and binding copy of this Packet Page 196 Item 16 8 1521860.1 Agreement, albeit one and the same instrument. Executed photocopies of this Agreement shall be as bind ing as the original. 17. Recordation; Covenants Run with the Land. DEVELOPER and CITY acknowledge and agree that upon full execution of this Agreement, it shall be recorded in the Official Records of the County of San Luis Obispo. All of the covenants, terms, provisions and conditions in this Agreement shall run with the Property and shall apply to, and bind the successors and assigns of, the DEVELOPER. 18. DEVELOPER and CITY acknowledge that in executing this Agreement, they have carefully reviewed and had the o pportunity to review the terms, with counsel of their choice and are fully aware of the extent of their rights and obligations under this Agreement. [Signatures on following page] Packet Page 197 Item 16 9 1521860.1 IN WITNESS WHEREOF, the parties have executed this Agreement as of the first date written above. CITY OF SAN LUIS OBISPO, a municipal corporation and charter city _____________________________ Heidi Harmon, Mayor ATTEST: ______________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: ________________________________ J. Christine Dietrick, City Attorney DEVELOPER Righetti Ranch, LP A Delaware Limited partnership By: NRE Manager, LLC, a Delaware limited liability company Its: General Partner By: Ambient Righetti Manager, LLC, A California limited liability company Its: Sole member By: ____________________________ Travis Fuentez, President By: ____________________________ Dante Anselmo, Vice-President All signatures must be notarized. Packet Page 198 Item 16 10 1521860.1 EXHIBIT A Include legal descriptions of all the tracts listed in the first recital Packet Page 199 Item 16 Page intentionally left blank. Packet Page 200 Item 16 Meeting Date: 10/16/2018 FROM: Monica Irons, Director of Human Resources Prepared By: Nickole Sutter, Human Resources Analyst II SUBJECT: ADJUSTMENTS TO THE COMPENSATION OF THE UNREPRESENTED CONFIDENTIAL EMPLOYEES RECOMMENDATION Adopt a Resolution with a three-year term (July 1, 2018 through June 30, 2021) adjusting the compensation of the Unrepresented Confidential Employees (Attachment A & B). DISCUSSION The City’s Unrepresented Confidential group includes four employees in the Human Resources, Administration, and the Cit y Attorney’s Office. These employees are designated as unrepresented in accordance with Government Code 3507.5 and Employer -Employee Resolution 6620 because they are privy to information that affects employee relations and labor negotiations. The confide ntial employees’ compensation and benefits are established by resolution adopted by Council that expired on June 30, 2018. Confidential employees are unrepresented which means there are no formal negotiations, as there are for other regular employees in similar classifications. The Confidential employees continue to demonstrate sensitivity to the fiscal challenges facing the City and met once in September to form a recommendation consistent with Council’s adopted Labor Relations Objectives (LROs) (Attachment C) and the Fiscal Health Response Plan (FHRP). The FHRP, adopted by Council April 17, 2018, outlines actions during the next three fiscal years (2018 -19 through 2020-21) aimed at closing an approximate $8.9 million budget gap due to CalPERS discount rate reduction resulting in increasing retirement costs to agencies. The FHRP anticipates employee concessions (anticipated growth of employee wages and benefits at a rate less than inflation) equaling $1.9M by fiscal year 2020-21. The City’s focus and primary interests included achieving a three-year agreement that provides certainty around compensation costs during the FHRP term, increased employee contributions to retirement costs, and maintaining competitive wages and benefits to support recruitment and retention objectives. This successor resolution includes modest cost of living increases (COLAs), partially offset by employees paying more towards retirement costs, and is very similar to the unrepresented management resolution adopted by Council in July 2018. Key Components of Unrepresented Confidential Resolution The following is a summary of the key changes included in the Resolution: 1. Term of Resolution. July 1, 2018 to June 30, 2021 2. Cost of Living Adjustments. The COLAs are partially offset by employees paying more towards PERS retirement and are in line with the FHRP and Council’s LROs. • 2% COLA July 2019; Employee contribution to CalPERS increased by 1.5%. • 2% COLA July 2020; Employee contribution to CalPERS increased by an additional 1.5%. Packet Page 201 Item 17 3. CalPERS Retirement. As indicated in the table below, unrepresented confidential employees will pay three percent (3%) more towards retirement costs. By July 2020, confidential employees will be contributing between 56% and 74% of the total normal cost of retirement (the amount needed to ensure current contributions fully fund future benefits), exceeding the 50% requirement established for employees new to CalPERS by the Public Employees’ Pension Reform Act (PEPRA). 4. Health Insurance Cost-Sharing. Maintain the current cost-sharing arrangement that increases the City contribution by 50% of the average percent increase in CalPERS medical premiums (For example, if the average increase in CalPERS medical premiums increases ten percent, the City contribution would increase five percent, while employees absorb the remainder of the increased cost). 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 CEQ A Guidelines sec. 15278. FISCAL IMPACT The cumulative ongoing cost to the City, after all items are implemented for the successor confidential resolution, is approximately $9,000 per year. The ongoing costs are modeled in the ten-year forecast, are sust ainable under the FHRP, and are consistent with Council adopted LROs. ALTERNATIVE Do not approve recommended changes to the resolution. Instead, adopt a resolution that continues unrepresented confidential employee compensation without changes. This alternative is not recommended as the resolution is in line with previous Council direction and is consistent with the Fiscal Health Response Plan. Attachments: a - Confidential Resolution 2018 b - Exhibit A to Attachment A (Legislative Draft) c - Labor Relations Objectives Employee Contribution Levels to PE RS Retirement (Percent of Salary) Miscellaneous PERS Tier July 2018 July 2019 July 2020 Tier 1 (2.7% @ 55) 8% 9.5% 11% Tier 2 (2% @ 60) 7% 8.5% 10% Tier 3 (2% @ 62) 6.25% 7.75% 9.25% Packet Page 202 Item 17 R ______ RESOLUTION NO. (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, REGARDING COMPENSATION FOR THE UNREPRESENTED CONFIDENTIAL EMPLOYEES AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS, the City has designated the following classifications as confidential employees pursuant to the Government Code 3507.5 and Employer-Employee Resolution 6620: Administration Executive Assistant, Human Resources Administrative Assistant I, II, III, Human Resources Specialist , Legal Assistant, and Legal Assistant /Paralegal; and WHEREAS, confidential employees are precluded from collective bargaining due to their proximity to labor negotiations, and therefore are not governed by a collective bargaining agreement ; and WHEREAS, the unrepresented confidential employees have demonstrated sensitivity to the fiscal challenges facing the City and agree to a shared approach including modest salary increases partially offset by employees’ increased contributions towards retirement costs ; and WHEREAS, the City Council is committed to providing competitive compensation as provided in the City’s adopted Compensation Philosophy. NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis Obispo hereby revises unrepresented confidential compensation as follows: SECTION 1. The salaries of unrepresented confidential employees are hereby increased by a 2% cost of living adjustment effective the fir st full pay period in July 2019 and July 2020, respectively. Unrepresented confidential employees shall pay 3% more towards retirement costs as specified in Exhibit “A” by July 2020. SECTION 2. The City shall continue to provide employees certain fringe benefits as set forth in Exhibit “A”, fully incorporated by reference. SECTION 3. The Director of Finance shall adjust the appropriate accounts to reflect the compensation changes. Packet Page 203 Item 17 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 4. This resolution shall be in effect from July 1, 2018 through June 30, 2021. Upon motion of ___________________________, seconded by ________________________, and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 16th day of October, 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 Page 204 Item 17 Exhibit “A” Table of Contents Section A Medical, Dental, Vision ................................................................................ 1 Section B Health Flex Allowance ................................................................................. 2 Section C Life and Disability Insurance ........................................................................ 3 Section D Retirement ................................................................................................... 3 Section E Vacation....................................................................................................... 5 Section F Administrative Leave ................................................................................... 6 Section G Holidays ..................................................................................................... 67 Section H Sick Leave ................................................................................................. 78 Section I Workers’ Compensation Leave ................................................................... 8 Section J Overtime ................................................................................................... 89 Section K Work Out-of-Classification ....................................................................... 910 Packet Page 205 Item 17 EXHIBIT “A” Page 1 Section A Medical, Dental, Vision The City shall establish and maintain medical, dental and vision insurance plans for confidential employees and their dependents. The City reserves the right to choose the method of insuring and plans to be offered. PERS Health Benefit Program The City has elected to participate in the PERS Health Benefit Progr am. The City shall contribute an equal amount towards the cost of medical coverage under the Public Employee’s Medical and Hospital Care Act (PEMHCA) for both active employees and retirees. The City’s contribution toward coverage under PEMHCA shall be th e statutory minimum contribution amount established by CalPERS on an annual basis. The City's contribution will come out of that amount the City currently contributes to employees as part of the City’s Cafeteria Plan. The cost of the City's participation in PERS will not require the City to expend additional funds toward health insurance. In summary, this cost and any increases will be borne by the employees. Health Insurance Benefits for Domestic Partners The City has adopted a resolution electing to p rovide health insurance benefits to domestic partners (Section 22873 of the PEMHCA). Conditional Opt Out Employees who at initial enrollment or during the annual open enrollment period, complete an affidavit and provide proof of other minimum essential co verage for themselves and their qualified dependents (tax family) that is not a qualified health plan coverage under an exchange/marketplace or an individual plan, will be allowed to waive medical coverage for themselves and their qualified dependents (tax family). The monthly conditional opt-out amount is $200. The conditional opt-out incentive shall be paid in cash (taxable income) to the employee. The employee must notify the City within 30 days of the loss of other minimum essential coverage. The conditional opt-out payment shall no longer be payable, if the employee and family members cease to be enrolled in other minimum essential coverage. Employees receiving the conditional opt-out amount will also be assessed $16.00 per month to be placed in the Retiree Health Insurance Account. This account will be used to fund the City's contribution toward retiree premiums and the City's costs for the Public Employee's Contingency Reserve Fund and the Administrative Costs. However, there is no requirement that these funds be used exclusively for this purpose nor any guarantee that they will be sufficient to fund retiree health costs, although they will be used for negotiated employee benefits. Packet Page 206 Item 17 EXHIBIT “A” Page 2 Dental and Vision Insurance/Dependent Coverage Effective March 23, 2017, eEmployee participation in the City's dental and vision plans is optional. Employees who elect coverage shall pay the dental and/or eye premium by payroll deductions on a pre-tax basis through the City’s Cafeteria Plan. Section B Health Flex Allowance Employees electing medical coverage in the City’s plans shall receive a health flex allowance, as defined by the Affordable Care Act (“ACA”), and shall purchase such coverage through the City’s Cafeteria Plan. If the health flex allowance is less than the cost of the medical plan, the employee shall have the opportunity to pay the difference between the health flex allowance and the premium cost on a pre -tax basis through the City’s Cafeteria Plan. If the premium cost for medical coverage is less than the health flex allowance, the employee shall not receive any unused health flex in the form of cash or purchase additional benefits under the Cafeteria Plan. The monthly health flex allowance amounts for regular, full -time employees are: Level of Coverage 2018 Monthly Health Flex Allowance Rates 2019 Monthly Health Flex Allowance Rates Employee Only $539 $550 Employee Plus One $1,066 $1,088 Family $1,442 $1,472 Effective December 20187 (for the January 20198 premium), December 2019 (for the January 2020 premium), and December 2020 (for the January 2021 premium), the City’s total health flex allowance for group medical coverage was will be modified by an amount equal to one-half of the average percentage increasechange for family coverage in the PERS health plans available in San Luis Obispo County. For example: if three plans were available and the year -to-year changes were +10%, +2015%, and -6+20% respectively, the City’s contribution would be increased by 47.5% (10% + 2015% + -620% ÷ 3 = 815% x 1/2). Less than full-time employees shall receive a prorated share of the City’s contribution. The City agrees to continue its contribution to the health flex allowance for two (2) pay periods in the event that an employee has exhausted all paid time off and leave approved under the federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA) due to an employee's catastrophic illness. That is, the employee shall receive regular City health flex allowance for the first two (2) pay periods following the pay period in which the employee’s accrued leave balances reach zero (0) and FMLA/CFRA benefits have been exhausted. Packet Page 207 Item 17 EXHIBIT “A” Page 3 Section C Life and Disability Insurance The City shall provide the following special insurance benefits: 1. Long-term disability insurance providing 66 2/3% of gross salary (maximum benefit $5,000 per month) to age 65 for any sickness or accident, subject to the exclusions in the long-term disability policy, after a 30-day waiting period. 2. In addition to $4,000 term life insurance purchased by the employee, the City provides $25,000 term life insurance, including $29,000 for accidental death and dismemberment through the City’s Cafeteria Plan. Section D Retirement A. PERS Contracts 1. “Classic Members First Tier” eEmployees hired before December 6, 2012. The City agrees to provide the Public Employees' Retirement System’s (PERS) 2.7% at age 55 plan to all eligible employees. The 2.7% at 55 plan includes the following amendments: 1959 Survivor’s Benefit – Level Four, conversion of unused sick leave to additional retirement credit, one -year final compensation, Military Service Credit, and Pre-Retirement Optional Settlement 2 Death Benefit. including the amendments permitting conversion o f unused sick leave to additional retirement credit, the 1959 Survivor's Benefit – Level Four, one-year final compensation, the Military Service Credit option, and the Pre -Retirement Option 2 Death Benefit. Employees covered by the 2.7% at 55 plan will pay the full eight percent member contribution to PERS. The employee pays to PERS their contribution; as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre -tax basis 1.2. “Classic Members Second Tier” employees hired on or after December 6, 2012. For “Classic Members” hired on or after December 6, 2012, tThe City will agrees to provide the PERS 2% at 60 retirement plan using the highest three-year average as final compensation. The second -tier formula will include the following amendments: conversion of unused sick leave to additional retirement credit, the 1959 Survivor's Benefit – Level Four, the Military Service Credit option, and the Pre-Retirement Option Settlement 2 Death Benefit. Employees hired under this plan will pay the full member contribution required under the plan, presently seven percent (7%). CalPERS determines who is a “classic member” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA). Packet Page 208 Item 17 EXHIBIT “A” Page 4 The employee pays to PERS their contribution; as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre -tax basis. 2.3. “New Members Third Tier” employees hired after January 1, 2013. For all employees who Cal PERS determines are “Nnew Mmembers” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA)., Tthe City will provide the PERS 2% at 62 retirement plan using the highest three-year average as final compensation. A. Effective upon their date of hire, new membe rs will pay 50% of the total normal cost of the member contribution, as determined by CalPERS. B. The employee pays to PERS their contribution; as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre -tax basis. B. Member Contributions 1. “Classic Members First and Second Tier” Effective June 2012, confidential employees began paying the full member contribution required under the plan for first and second tier employees (8% and 7% respectively) and the City discontinued their payment of the member contribution. For purposes of this Section, employee contributions are based on salary and special compensation as defined by PERS. Effective the first full pay period in July 2019, all employees shall contribute 1.5% in addition to the employee contribution defined in the paragraph above. Effective the first full pay period in July 2020, all employees’ additional contribution shall increase to 3%, in addition to the employee contribution defined in the paragraph above. These additional contributions are in accordance to the provisions of AB 340, §7522.30 and §20516. All of the employee contributions are made on a pre -tax basis as allowed under Internal Revenue Service Code Section 414 (h) (2). 2. “New Members Third Tier” Effective on their date of hire, new members will pay 50% of the normal cost, as determined by PERS. Effective the first full pay period in July 2019, all new members shall contribute 1.5% in addition to the employee paying 50% of the normal cost. Effective the first full pay period in July 2020, all new members contribution shall increase to 3%, in addition to the employee paying 50% of the normal cost. These additional contributions are in accordance to the provisions of AB 340, §7522.30 and §20516. Packet Page 209 Item 17 EXHIBIT “A” Page 5 All of the employee contributions are made on a pre -tax basis as allowed under Internal Revenue Service Code Section 414 (h) (2). C. Contract Amendment with PERS The City will submit a contract amendment to PERS requesting the employee contributions effective July 2019 and 2020 (1.5% and 3% respectively) be considered contributions to the employees account. PERS currently requires a secret ballot election among the employees affected to change the employees’ rate of contribution. The contract cannot be amended if a majority of the affected members vote to disapprove the proposed plan. In the event a secret ballot is required by State Law and the unrepresented confidential group does not vote to approve the contract amendment, the additional contributions will still be required in accordance to the provisions of §20516(f). In this case the additional contributions would not be credited to the employee’s PERS account as a normal contribution. Section E Vacation Vacation leave is governed by Section 2.36.440 of the Municipal Code, except that it may be taken after the completion of the sixth calendar month of service since the benefit date or earlier with department head or designee authorization. Each confidential employee shall accrue vacation leave with the pay at the following rates: Years of Service Annual Vacation Accrual Days* Annual Vacation Accrual Hours 0 to 5 years 12 days 96 hours 5 to 10 years 15 days 120 hours 10 to 20 years 18 days 144 hours 20+ years 20 days 160 hours *One day is equivalent to eight (8) hours for a 40 -hour per week line-item position of 12 days (96 hours) per year of continuous service since the benefit date for the first five years, 15 days (120 hours) per year upon completion of five years, 18 days (144 hours) per year upon completion of ten years, and 20 days (160 hours) upon compl etion of twenty years. Vacation leave shall be accrued as earned semi -monthly provided that not more than twice the annual rate (not including floating holiday leave) may be carried over to a new calendar year. Effective, April 2019, confidential employees vacation time shall not exceed twice the annual rate. If an employee reaches the cap at any time throughout the year, the employee will stop accruing vacation leave. Vacation schedules for confidential employees shall be based upon the needs of the City and then, insofar as possible, upon the wishes of the employee. A department head may not deny a confidential employee’s vacation request if such denial will result in the loss of Packet Page 210 Item 17 EXHIBIT “A” Page 6 vacation accrual by the employee, except that, a department head may approve a two - month extension of maximum vacation accrual. However, in no event shall more than one such extension be granted in any calendar year. Confidential employees are eligible, once annually in December, to request payment for up to 40 hours of unused vacation provided that an employee’s overall performance and attendance practices are satisfactory. Payment for unused vacation leave is subject to the availability of budgeted funds. Section F Administrative Leave Confidential employees shall be granted 12 hours of administrative leave onthe first full pay period in January 1st of each year. Administrative leave hours shall be pro -rated on a monthly basis when a confidential employee is appointed or leaves employment during the calendar year. The employee’s final check will be adjusted to reflect the pro -rated hours, however there is no provision to receive cash payment for unused administrative hours. Un used administration leave will not be carried over year to year but can be taken through the pay period that December 31st falls withinof each year. Section G Holidays Confidential employees shall receive eleven (11) fixed plus two (2) floating hol idays per year. The following days of each year are designated as paid holidays: • January 1 – New Year’s Day • Third Monday in January – Martin Luther King Jr. Birthday • Third Monday in February – Presidents’ Day • Last Monday in May – Memorial Day • July 4 – Independence Day • First Monday in September – Labor Day • November 11 – Veteran’s Day • Fourth Thursday in November – Thanksgiving Day • Friday after Thanksgiving • December 25 – Christmas • One half day before Christmas • One half day before New Year’s Day When a holiday falls on a Saturday, the preceding Friday shall be observed. When a holiday falls on a Sunday, the following Monday shall be observed. A holiday shall be defined as eight (8) hours of paid time off for regular full - time employees. When Christmas or New Year’s Holiday falls on a Tuesday or Thursday, the City reserves the right to close non-essential City services and offices on Monday or Friday (the day adjacent to the observed holiday). Essential City services are determined at the Packet Page 211 Item 17 EXHIBIT “A” Page 7 discretion of the Department Head. Employees scheduled to work in non -essential functions on the days adjacent to the paid holidays would be required to use appropriate personal leave or take the days as non-pay. The City would notify employees of closure of non-essential City services and offices no later than October 31st of the same year in order to provide employees with ample time to plan accordingly. The two (2) floating holidays shall be accrued on a semi -monthly basis and added to the vacation accrual. Effective January 2019, the two floating holidays (16 hours) will be provided in a floating holiday leave bank on January 1st rather than being accrued on a semi -monthly basis. Employees will have the ability to use floating holiday leave hours at any point during the calendar year. Unused floating holiday leave will not be carried over year to year but can be taken through December 31st of each year. If an employee terminates for any reason, having taken off hours in excess of his/her prorated share of the floating holiday, the value of the overage will be deducted from the employee's final paycheck. In addition, there is no provision to receive cash payment for unused floating holiday leave. Section H Sick Leave Sick leave is governed by Section 2.36.420 of the Municipal Code. An employee shall accrue sick leave with pay at the rate of twelve (12) days or the prorated shif t equivalent per year of continuous service since the benefit date. An employee may take up to 48 hours per calendar year of sick leave if required to be away from the job to personally care for a member of his/her immediate family as defined in Section 2 .36.420, Labor Code 233 and/or Assembly Bill 1522. This may be extended to 56 hours if a household family member is hospitalized and the employee submits written verification of such hospitalization. In conjunction with existing leave benefits, confide ntial employees with one year of City service who have worked at least 1,250 hours in the previous year may be eligible for up to 12 weeks of Family/Medical Leave in accordance with the federal Family and Medical Leave Act and the California Family Rights Act (CFRA). In the event an employee is caring for a family member and is covered under FMLA/CFRA, they will be able to use all accrued sick leave to care for a family member. Sick leave may be used to be absent from duty due to the death of a member of the employee’s immediate family as defined in Section 2.36.420, provided such leave shall not exceed forty working hours for each incident. The employee may be required to submit proof of relative’s death before being granted sick leave pay. False infor mation concerning the death or relationship shall be cause for discharge. Upon retirement the employee may choose: 1) a payout of the employee’s accumulated sick leave balance based on years of service according to the following schedule, 2) to Packet Page 212 Item 17 EXHIBIT “A” Page 8 convert a portion or all of the employee’s sick leave balance to service credit in accordance with CalPERS regulations, or 3) a combination of these two options. According to the following schedule, a percentage of the dollar value of the employee’s accumulated sick leave may be paid to the employee if the employee requests upon termination by retirement, and will be paid to the designated beneficiary or beneficiaries upon termination by death of the employee: (A) Death – 25% (B) Retirement and actual commencement of PE RS benefits: (1) After ten years of continuous employment – 10% (2) After twenty years of continuous employment – 15% (3) After twenty-five years of continuous employment – 20% (4) After thirty years of continuous employment – 25% Section I Workers’ Compensation Leave An employee who is absent from duty because of an on-the-job injury in accordance with State workers’ compensation law and is not eligible for disability payments under Labor Code Section 4850 shall be paid the difference between his/her base salary and the amount provided by workers’ compensation law during the first ninety (90) business days of such temporary disability absence. Eligibility for workers’ compensation leave requires an open workers’ compensation claim. Section J Overtime DefinitionCity Overtime Definition Overtime is defined as all hours preauthorized by management and worked by the employee in excess of forty (40) hours worked in a work week. Holidays and sick leave will be counted as hours worked for purposes of overtime. All overtime shall be authorized by the department head or designee prior to being compensated. FLSA/Statutory Overtime For the purpose of complying with FLSA overtime requirements under 29 USC section 207(a), the City has adopted a dual calculation method whereby it calc ulates FLSA overtime based on all hours actually worked by overtime eligible employees in excess of 40 hours in the seven-day work period. To the extent the City’s dual calculation method determines that FLSA overtime owed for the seven -day work period exceeds the amount of City overtime paid for the same seven-day work period, the difference will be paid to the employee by way of an “FLSA Adjustment” in the following City pay period. Compensation All overtime as defined in this Section shall be paid in cash at one and one half (1 1/2) the employee's base rate of pay. All overtime shall be compensated to the nearest five (5) minutes worked. Packet Page 213 Item 17 EXHIBIT “A” Page 9 Separate and apart from the City's contractual obligation to pay overtime in accordance with this Section, the City is obligated to calculate and pay, at a minimum, FLSA overtime based on the federally defined regular rate of pay. This calculation will be administered in accordance with the FLSA/Statutory Overtime ’ section above. Compensatory Time Off (CTO) A confidential employee eligible for overtime compensation as defined in this Section may elect compensation in the form of time of f (CTO). An employee may not be compensated in CTO for more than sixty (60) hours of overtime worked in the calendar year. Accumulated CTO may be taken through December 31st of each calendar year. Accumulated CTO not taken by midnight December 31st shal l be compensated in cash at straight time. Such compensation shall be paid in January of the following year. Work Week for Calculation of Overtime For all confidential employees working a regular 5/40 work schedule or a 4/10 alternative work schedule, the work week for the purpose of calculating overtime as defined in this Section shall be seven consecutive days, beginning at 12:00 am Thursday and ending at 11:59 pm Wednesday. For all confidential employees working a 9/80 alternative work schedule, the w ork week for the purpose of calculating overtime as defined in this Section shall be seven consecutive days, beginning exactly four hours into their eight -hour shift on the day of the week which constitutes their alternative regular day off. Section K Work Out-of-Classification An out-of-class assignment is the full -time performance of all the significant duties of an available, funded position in one classification by an individual in a position of another classification. An employee assigned in writing b y management to work out-of-class in a position that is assigned a higher pay range which is vacant pending an examination or is vacant due to an extended sick or disability leave, shall receive no less than five percent (5%), but in no case more than the top salary of the higher range, in addition to their regular base rate commencing on the eleventh consecutive workday of the out -of-class assignment. Packet Page 214 Item 17 Labor Relations Objectives Adopted by Council September 23, 2014 Revised by Council March 20, 2018 1. Maintain fiscal responsibility by ensuring that fair and responsible employee compensation expenditures are supported by on -going revenues. (Theme – Fiscal Responsibility) 2. Continue to make progress in the area of long-term systemic pension cost containment and reduction, including reversing the unfunded pension liability trend and other actions consistent with State law. (Theme – Cost Containment/Reduction) 3. Continue to effectively manage escalating health benefit costs through balanced cost sharing and other means while maintaining comprehensive health care coverage for all eligible employees. (Theme – Cost Containment) 4. As necessary to attract and retain well qualified employees at all levels of the organization, provide competitive compensation as articulated in the City’s Compensation Philosophy, including relevant local, statewide or national labor markets. (Theme – Recruitment and Retention) 5. Employee labor agreements will be negotiated in good faith, in a timely manner that avoids retroactivity provisions unless there is a compelling need. (Theme – Cost Containment) 6. Contract provisions shall take into consideration the City’s ability to effectively and efficiently implement and administer them using the City’s financial and human resources systems to ensure accuracy and compliance with federal, state, and local laws. (Theme – Best Practices and Compliance) Packet Page 215 Item 17 Page intentionally left blank. Packet Page 216 Item 17 Meeting Date: 10/16/2018 FROM: Monica Irons, Director of Human Resources Prepared By: Nickole Sutter, Human Resources Analyst II SUBJECT: SUCCESSOR MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION RECOMMENDATION 1. Adopt a Resolution (Attachment A) ratifying the successor Memorandum of Agreement (MOA) (Attachment B, Exhibit A) between the City of San Luis Obispo and the San Luis Obispo Police Officers’ Association (POA) with a three-year term (July 1, 2018 through June 30, 2021) that includes: a. Modest cost of living increases partially offset by increased employee contributions to retirement costs; and b. Dismissal of a pending grievance regarding holiday pay; and, c. Resolution of a potential Federal Labor Standards Act (FLSA) dispute regarding inclusion of cash in lieu of City contribution to health insurance in the calculation of FLSA overtime, with new contract language providing for the dual calculation of contract and FLSA overtime. 2. Adopt a Regular and Supplemental Salary Schedule effective October 16, 2018 as required by California Public Employees Retirement System (CalPERS) (Attachment C & D). DISCUSSION Background The POA represents 64 members; 45 sworn Police Officers and 19 non-sworn personnel including Commu nications Technicians (emergency dispatchers), Police Records Clerks, a Property and Evidence Clerk, Police Field Services Technician, and Evidence Technician. POA timely notified the City of its intent to negotiate a successor MOA and POA and City representatives met eight times over five months to reach the proposed agreement. POA expressed clear priorities that included reasonable cost of living increases and other minor modifications to various components of compensation to assist in attracting and r etaining well qualified employees, given the ongoing recruitment and retention challenges in the Police Department . There is no doubt the City has challenges attracting and retaining Police Officers and Communications Technicians that make up most of this bargaining unit. In the past five years, turnover for these two classifications has increased to 20%, twice the City-wide average. This challenge is not peculiar to the City but is shared by most agencies in California and throughout the Country. While recognizing the recruitment and retention challenges, the City also expressed to the POA representatives, objectives outlined in the Council -adopted Fiscal Health Response Plan (FHRP) Packet Page 217 Item 18 that outlines actions during the next three fiscal years (2018 -19 through 2020-21) aimed at closing an approximate $8.9 million budget gap due to CalPERS discount rate reductions resulting in increasing retirement costs to agencies. The FHRP anticipates employee concessions (anticipated growth of employee wages and benefit s at a rate less than inflation) equaling $1.9M by fiscal year 2020-21. Therefore, the City’s focus and primary interests included achieving a three-year agreement that provides certainty around compensation costs during the FHRP term, increased employee contributions to retirement costs, and maintaining competitive wages and benefits to support recruitment and retention objectives. Increasing employee contributions to retirement for this group, is significant given that it already contributes 50% of the normal cost of retirement and three percent more than the Member contribution. Negotiation sessions with this group were cooperative and focused on key objectives that also included resolution of potential disputes over a modification to the payment of holiday pay necessary to meet CalPERS requirements and the conclusion of the City’s internal review of FLSA compliance following the 2016 Flores v. City of San Gabriel case. Both issues were discussed in detail with POA representatives including a detailed analysis of potential FLSA liability by the City due to the required inclusion of cash-in-lieu of City contribution to health insurance in the calculation of Federal overtime. The City implemented a “dual-calculation” of overtime on July 5, 2018 that offsets any FLSA overtime with the contractually required overtime payments. In the event an employee is owed more under the FLSA overtime calculation than the contractual overtime calculation, an adjustment is made. Key Components of the Successor MOA The following is a summary of the key changes included in the successor POA MOA: 1. Term of the Agreement. July 1, 2018 to June 30, 2021 2. Cost of Living Adjustments. The COLAs are partially offset by PERS retirement cost - sharing and are in line with the FHRP and Council’s Labor Relation Objectives (LROs). • 2% COLA July 2019 All Sworn and Non-Sworn Classifications • 2% COLA July 2020 All Sworn and Non-Sworn Classifications 3. Equity Adjustments. The City, along with most cities in the State and nationally, are having difficulty attracting and retaining well-qualified Police Officers. The recruiting challenges are in part due to fewer people entering the field of policing, complicated by the lower second tier retirement formula (2% @ 50) implemented by the City in 2012, higher cost of living on the Central Coast, and trailing spouse issues. In addition, the City has experienced increased turnover in the Communication Technician (emergency dispatcher) classification. With that in mind, equity adjustments were authorized for these classifications to keep them close to market median through the term of the MOA. • 1% Equity July 2019 Police Officer and Communication Technician Classifications Only • 1% Equity July 2020 Police Officer and Communication Technician Classifications Only Packet Page 218 Item 18 4. CalPERS Retirement Cost-Sharing. By the third year of the contract, all POA members will pay three percent (3%) more towards their retirement. Currently, Tier 1 and 2 sworn POA sworn members pay 12% and Tier 3 sworn personnel pay 12.75 % of their salary and special compensation to retirement. In July 2020, the contribution rates for sworn personnel will increase to 15% and 15.75% as shown in the table below. Non-sworn personnel currently contribute 11% and 6.25% depending on retirement tier. Non-sworn employee contributions will increase to 14% and 9.25%. The ongoing increase of the employee contribution to retirement is in line with the City’s FHRP and Council’s LROs. 5. Health Insurance Cost-Sharing. During the duration of the contract, the C ity contribution to health insurance will increase two times instead of annually; once in December 2018 for the January 2019 premium and again in December 2020 for the January 2021 premium. The increase will be calculated using a cost-sharing arrangement that increases the City contribution by 50% of the average percent increase in CalPERS medical premiums. For example, if the average increase in CalPERS medical premiums increases eight percent, the City contribution would increase four percent, while employees absorb the remainder of the increased cost. This balanced cost sharing model meets Council’s LROs. 6. Lump-Sum Payments. The following lump-sum, taxable payments are intended to assist in retaining employees during the term of this agreement and rep resent settlement of a potential grievance regarding payment of holiday pay and a potential FLSA dispute over the inclusion of cash back from the City health contribution in the calculation of FLSA overtime. Lump-sum payments will be made to members emplo yed by the City on the effective date of the payments as listed below. • Upon Council Adoption $1,500 All Classifications • June 2019 $1,500 All Classifications • July 2019 $1,500 Classifications in Evidence, Field Services, and Records only • December 2019 $1,500 All Classifications • July 2020 $1,500 Classifications in Evidence, Field Services, and Records only • December 2020 $1,500 All Classifications 7. Other minor modifications. Other minor modifications resulting in no or low cost were agreed to, primarily related to adding clarifying language to the MOA regarding use of Employee Contribution Levels to PERS Retirement (Percent of Salary) Safety PERS Tier July 2018 July 2019 July 2020 Tier 1 (3% @ 50) 12% 13.5% 15% Tier 2 (2% @ 50) 12% 13.5% 15% Tier 3 (2.7% @ 57) 12.75% 14.25% 15.75% Packet Page 219 Item 18 union time bank, payment of uniform allowance, updating of per diem amounts when traveling for training, and clarifying that employees who opt in to City medical plans do not receive cash back. Benefits of the MOA Provisions 1. A three-year term for the successor MOA avoids additional negotiations during the FHRP term. 2. Modest cost of living increases, partially offset by increased employee contributions to retirement costs, and targeted equity adjustments helps maintain competitive salaries while keeping the overall increase in total compensation under anticipated inflation rates. 3. One-time payments at intervals throughout the labor agreement, represent a finite incentive to retain experienced employees, settles two potential disputes (holiday pay and FLSA overtime payments) while not increasing ongoing compensation on which long - term retirement obligations are based. 4. Confirms the dual calculation of overtime methodology that limits overtime liability by using contract overtime to offset strict FLSA overtime liability. 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 The one-time cost totals approximately $402,000 during the three-year term. The one-time monies were identified in the 17-18 Financial Plan and have been encumbered for use in later fiscal years. The cumulative ongoing cost to the City, after all items are implemented for the successor POA MOA, is approximately $303,000. The ongoing costs are modeled in the ten- year forecast, are sustainable under the FHRP, and are consistent with Council a dopted Labor Relation Objectives. ALTERNATIVE Do not approve recommended changes to the resolution and MOA. Instead, direct staff to return to the bargaining with the POA. This alternative is not recommended as the resolution and MOA are consistent wit h previous Council direction and with the Fiscal Health Response Plan. Attachments: a - POA Resolution 2018 b - Exhibit A to Attachment A, POA MOA (Legislative Draft) c - Regular and Contract Employee Salary Schedule d - Supplemental Employee Salary Schedule Packet Page 220 Item 18 R ______ RESOLUTION NO. (2018 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING AND RATIFYING THE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION FOR THE PERIOD OF JULY 1, 2018 TO JUNE 30, 2021 WHEREAS, the San Luis Obispo Police Officers’ Association (POA) is committed to providing high quality service to the community and recognizes the City’s commitment to fiscal responsibility in alignment with the City’s Fiscal Health Response Plan; and WHEREAS, the POA has agreed to a shared approach including modest salary increases in exchange for employees paying more towards retirement costs; and WHEREAS, the City of San Luis Obispo has experienced c hallenges recruiting and retaining Police Officers and Communications Technicians; and WHEREAS, the City Council is committed to providing competitive compensation to recruit and retain well qualified employees, as provided in the City’s adopted Compe nsation Philosophy while also considering the long-term fiscal sustainability of changes in compensation. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows: SECTION 1. The Memorandum of Agreement between the City of San Luis Obispo and the POA, attached hereto as Exhibit “A” and incorporated herein by this reference, is hereby adopted and ratified. SECTION 2. The Director of Finance shall adjust the appropriate accounts to reflect the compensation changes. Packet Page 221 Item 18 Resolution No. _____ (2018 Series) Page 2 R ______ SECTION 3. The City Clerk shall furnish a copy of this resolution and a copy of the executed Memorandum of Agreement approved by it to: Chris Chitty, President of the San Luis Obispo Police Officers’ Association, and Monica Irons, Director of Human Resources. Upon motion of ___________________________, seconded by ________________________, and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 16th day of October, 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 16th day of October, 2018. ____________________________________ Teresa Purrington City Clerk Packet Page 222 Item 18 Exhibit “A” Packet Page 223 Item 18 Exhibit “A” ii Table of Contents ARTICLE 1 - PREAMBLE ...........................................................................................................1 ARTICLE 2 - RECOGNITION ......................................................................................................2 ARTICLE 3 - CHECK OFF/DUES DEDUCTION .........................................................................3 ARTICLE 4 - EMPLOYEE RIGHTS .............................................................................................4 ARTICLE 5 - MANAGEMENT RIGHTS .......................................................................................5 ARTICLE 6 - REPRESENTATIVE ROLE ....................................................................................6 ARTICLE 7 - SALARY .................................................................................................................8 ARTICLE 8 - MASTER POLICE OFFICER PROGRAM ............................................................11 ARTICLE 9 - TRAINING OFFICER INCENTIVE .......................................................................14 ARTICLE 10 - BILINGUAL PAY ................................................................................................15 ARTICLE 11 - OVERTIME - SWORN .......................................................................................16 ARTICLE 12 - OVERTIME - NON-SWORN ..............................................................................22 ARTICLE 13 - WORK OUT-OF-GRADE ...................................................................................26 ARTICLE 14 STANDBY SWORN & NON-SWORN ...................................................................27 ARTICLE 15 - EDUCATION INCENTIVE ..................................................................................28 ARTICLE 16 - UNIFORM ALLOWANCE ...................................................................................30 ARTICLE 17 - HEALTH CARE INSURANCE ............................................................................31 ARTICLE 18 - RETIREMENT ....................................................................................................41 ARTICLE 19 - SENIORITY........................................................................................................45 ARTICLE 20 - HOLIDAYS .........................................................................................................46 ARTICLE 21 - VACATION.........................................................................................................48 ARTICLE 22 - SICK LEAVE ......................................................................................................51 ARTICLE 23 - FAMILY LEAVE .................................................................................................52 ARTICLE 24 - BEREAVEMENT LEAVE....................................................................................55 ARTICLE 25 - CATASTROPHIC LEAVE ...................................................................................56 ARTICLE 26 - WORKERS' COMPENSATION LEAVE ..............................................................58 ARTICLE 27 - JURY DUTY AND MILITARY LEAVES ..............................................................59 ARTICLE 28 - GENERAL PROVISIONS ...................................................................................60 ARTICLE 29 - RESIDENCY REQUIREMENTS .........................................................................61 ARTICLE 30 - PROMOTIONAL POLICY ...................................................................................62 ARTICLE 31 - PERFORMANCE EVALUATIONS .....................................................................66 ARTICLE 32 - GRIEVANCE PROCEDURE ..............................................................................69 ARTICLE 33 - LAYOFFS ..........................................................................................................72 ARTICLE 34 - WORK ACTIONS ...............................................................................................74 ARTICLE 35 - COMMUNICATION PROCESS ..........................................................................75 ARTICLE 36 - NOTICE TO THE ASSOCIATION ......................................................................76 ARTICLE 37 - EQUIPMENT ......................................................................................................77 ARTICLE 38 - TEMPORARY MODIFIED DUTY .......................................................................79 ARTICLE 39 - WORK SCHEDULES .........................................................................................80 ARTICLE 40 - SWAT ................................................................................................................88 ARTICLE 41 - TRAUMATIC INCIDENTS ..................................................................................89 ARTICLE 42 - NO DISCRIMINATION .......................................................................................90 ARTICLE 43 - STAFFING .........................................................................................................91 ARTICLE 44 - FULL AGREEMENT ...........................................................................................92 ARTICLE 45 - SAVINGS CLAUSE ............................................................................................93 ARTICLE 46 - RENEGOTIATIONS ...........................................................................................94 Packet Page 224 Item 18 Exhibit “A” iii ARTICLE 47 - TERM OF AGREEMENT ...................................................................................95 APPENDIX A - CLASSIFICATION ............................................................................................96 APPENDIX B - GRIEVANCE FORMS .......................................................................................97 APPENDIX C – SALARY RANGE LISTING ..............................................................................99 Packet Page 225 Item 18 Exhibit “A” 1 ARTICLE 1 - PREAMBLE 1.1 This Agreement is effective the 1st 16th day of JanuaryOctober, 20162018, by and between the City of San Luis Obispo, hereinafter referred to as City, and the San Luis Obispo Police Officers' Association. The provisions of this Agreement shall apply to all unit members employed on January 1, 2016October 16, 2018 or thereafter. 1.2 The purpose of this Agreement is to promote the improvement of personnel management and employer/employee relations, provide an equitable and peaceful procedure for the resol ution of differences and establish rates of pay and other terms and conditions of employment. 1.3 The City and the Police Officers' Association agree that all employees of the City share in the important responsibility of providing superior service to the public and that every job and position is considered to be important. 1.4 Nothing in this Agreement between the parties shall invalidate or be substituted for any provision in Resolution No. 6620 (1989 Series) unless so stipulated to by provision(s) contained herein and agreed to. Packet Page 226 Item 18 Exhibit “A” 2 ARTICLE 2 - RECOGNITION The City hereby recognizes the San Luis Obispo Police Officers' Association as the bargaining representative for purposes of representing regular and probationary employees, occupying the position classifications set forth in Appendix A, in the Police Unit with respect to their compensation, hours and other terms and conditions of employment for the duration of the Agreement. Packet Page 227 Item 18 Exhibit “A” 3 ARTICLE 3 - CHECK OFF/DUES DEDUCTION 3.1 The City shall deduct dues from City employees and remit said dues to the Association treasurer, which dues shall not include assessments. 3.2 Dues deduction, additions, and/or deletions shall be recorded by the City's Finance & Information Technology Director or designee and a notification of all dues transactions shall be sent monthly to the Association President. 3.3 The Association shall hold the City harmless from any and all claims and will indemnify it against any unusual costs in implementing these provisions. 3.4 The Association shall refund to the City any amount paid to the Association in error, upon presentation of supporting evidence. Packet Page 228 Item 18 Exhibit “A” 4 ARTICLE 4 - EMPLOYEE RIGHTS Employees of the City shall have the right to form, join and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations including, but not limited to, wages, hours and other terms and conditions of employment. Employees of the City also shall have the right to refuse to join or participate in the activities of employee organizations and shall have the right to represent themselves individually in their employ ment relations with the City. No employee shall be interfered with, intimidated, restrained, coerced or discriminated against because of the exercise of these rights. Packet Page 229 Item 18 Exhibit “A” 5 ARTICLE 5 - MANAGEMENT RIGHTS The rights of the City include, but are not limited to, the exclusive right to determine the mission of its constituent departments, commissions and boards; set standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action ; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficiency of government operations; determine the methods, means and personnel by which government operations are to be conducted; determine the conten t of the job classifications; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology for performing its work. The City’s exercise of its rights under this section is subject to applicable State law. Packet Page 230 Item 18 Exhibit “A” 6 ARTICLE 6 - REPRESENTATIVE ROLE As established by Article 44 of this Agreement, in the event any new practice or subject matter within the scope of representation arises during the term of this Agreement and an action concerning that practice or subject matter is proposed by the City, the Association will be afforded notice and shall have the right to meet and confer upon request. In this event, as well as for renegotiations under Article 46 of this Agreement, members of the Association may, by a reasonable method, select not more than five (5) employee members to meet and confer with the Municipal Employee Relations Officer and other management officials (after written certification of such selection is prov ided by the Association). Such meet and confer sessions under both Article 44 and Article 46 of this Agreement shall be considered hours of work for the designated Association representatives. The Association shall, whenever practicable, submit the name(s) of each employee representative to the Municipal Employee Relations Officer at least two working days in advance of such meetings. Provided further: (A) That no employee representative shall leave his or her duty or work station or assignment without specific approval of the Police Chief or other authorized City management official. That any such meeting is subject to scheduling by City management consistent with operating needs and work schedules. Nothing provided herein, however, shall limit or restr ict City management from scheduling such meetings before or after regular duty or work hours. (B) Association members will donate a total of 250 hours per year (inclusive of any carryover time) of vacation time, holiday time, and compensatory time off to an Association "time bank" under the following guidelines: During the first full pay period of July each calendar year, the POA President shall determine the number of hours remaining in the Association time bank. That number shall be subtracted from the maximum number of time bank hours of 250 hours. The difference Packet Page 231 Item 18 Exhibit “A” 7 between the actual number of hours and the 250 hour maximum will be divided by the number of POA represented employees. Each represented employee shall then contribute an equal number of lea ve hours to be debited by the City to maintain the 250 hours time bank. Employees shall have the option to designate vacation, holiday or CTO leave time. 1. Only Association officers or bargaining team members may draw from the bank. 2. Requests to use time from the bank must be made reasonably in advance of the use. Approval is subject to the operational necessity of the department and normal time off approval processes. 2.3. Time bank hours can be used for POA operational needs including but not limited to Association training, meetings and ancillary business. The City agrees to meet and confer over an increase in donations to the association leave bank if requested by the POA during the term of this MOA. Packet Page 232 Item 18 Exhibit “A” 8 ARTICLE 7 - SALARY 7.1 Rules Governing Step Increases The following rules shall govern step increases for employees: A. The first step is the minimum rate and shall normally be the hiring rate for the class. In cases where it is difficult to secure qualified personnel, or if a person of unusual qualifications is hired, the City Manager may authorize hiring at any step. B. The second step is an incentive adjustment to encourage an employee to improve his/her work. An employee may be advanced to the second step following twelve months satisfactory service upon recommendation by the Police Chief and the approval of the Human Resources Director. C. The third, fourth & fifth step represents the middle value of the salary range and is the rate at which a fully -qualified, experienced and ordinarily conscientious employee may expect to be paid after a reasonable period of satisfactory service. An employee may be advanced to the third and subsequent steps after completion of twelve months service at the prior step, provided the advancement is recommended by the Police Chief and approved by the Human Resources Director. D. The sixth step is to be awarded only in case of work which is well above average for the class. An employee may be advanced to the sixth step after completion of one year of service at the fifth step, provided the advancement is recommended by the Police Chief and approved by the Human Resources Director. E. The seventh and eighth steps are intended as a reward for performance sustained above satisfactory. An employee may be advanced to the seventh or eighth step after completion of one year at the prior step, provided the advancement is recommended by the Police Chief and approved by the Human Resources Director. F. Progression to Master Police Officer, step 9, will occur when the employee has satisfied the requirements in Article 8.4. Packet Page 233 Item 18 Exhibit “A” 9 G. The Police Chief shall be authorized to reevaluate employees who reach top step in their pay range. An employee who is not performing up to standard for the top step shall be notified in writing that the Police Chief intends to reduce him/her one step unless job performance improves significantly within a 60-day period. Unless the employee's job performance improves to an acceptable level by the end of 60 days, the pay reduction shall then become effective. The top step may be reinstated at any time upon recommendation of the Police Chief. If the Police Chief deems it necessary to again remove the top step during the same fiscal year, he/she may make the change at any time with three business days' advanced written notice. H. The salary range for Police Officer consists of nine steps (1 through 9). Steps 1 through 9 equal 95% of the next highest step, computed to the nearest $1.00. The salary range for Communications Technician, Evidence Technician, Field Services Technician, Property and Eviden ce Clerk, Police Records Clerk and Police Cadet consists of seven steps (1 through 7). Steps 1 through 7 equal 95% of the next highest step, computed to the nearest $1.00. Each across-the-board % salary increase shall raise each step of the range by the %. The top step of each successive salary range will be 2.63% above the top step of the next lower range. After all steps of each salary range have been established, each shall be rounded off to the nearest $1.00. Employees who are eligible for advanc ement to top step must receive a "Meets Performance Standards" or better on the overall rating on their most recent Performance Appraisal prior to or coincident with their being eligible for advancement by time in grade. Employees who are eligible for advancement to the top two steps must receive a "Meets Performance Standards" or better on the overall rating on their most recent Performance Appraisal prior to or coincident with their being eligible for advancement by time in grade. Packet Page 234 Item 18 Exhibit “A” 10 7.2 Salary Increases for Term of Agreement Salary increases will be effective on the first day of the first full pay period following the dates listed below: • July 2019 2% All Sworn and Non-Sworn Classifications • July 2020 2% All Sworn and Non-Sworn Classifications • January 1, 2016 2% Sworn and Non-Sworn Classifications • January 1, 2017 2% Sworn and Non-Sworn Classifications • January 1, 2018 2% Sworn and Non-Sworn Classifications Recruitment and Retention Market Adjustment for Term of Agreement: Due to the critical nature of the work performed and difficulty in attracting and retaining qualified employees in these classifications, r ecruitment and retention market increases will be effective on the first day of the first full pay period following the dates listed below: • July 2019 1% Communications Technicians and Police Officers • July 2020 1% Communications Technicians and Police Officers • July 2016 1.0% Sworn and Non-Sworn Classifications • July 2017 1.0% Sworn and Non-Sworn Classifications 7.3 Lump-Sum Payments The following lump-sum, taxable payments are provided to assist in retaining employees during the term of this agreement and represent settlement of a potential grievance regarding payment of holiday pay and a potential FLSA dispute over the inclusion of cash in lieu of health contributions in the calculation of overtime. These payments will be made to all members employed by the City on the effective date of the payments that are to be effective on the first full pay period following the dates listed below: • $1,500 upon Council Adoption – All Classifications • $1,500 June 2019 – All Classifications Packet Page 235 Item 18 Exhibit “A” 11 • $1,500 July 2019 – Evidence, Field Services, and Records Classifications Only • $1,500 December 2019 – All Classifications • $1,500 July 2020 – Evidence, Field Services, and Records Classifications Only • $1,500 December 2020 – All Classifications The salary ranges for the term of this agreement are listed in Appendix C . ARTICLE 8 - MASTER POLICE OFFICER PROGRAM 8.1 The Master Police Officer Program shall be as follows: The specialty assignments included in this program are: S.E.T5 4 years4 Traffic Officer5 3 4 years3 Investigator5 4 years Narcotics Task Force Investigator 4 years SRO 4 years4 Crime Scene Investigator 3 years Defensive Tactics Instructor1 3 years Hostage Negotiator1 3 years Range Master 4 years2 Downtown Officer 3 years2 Swat Team Operator1 3 years Bomb Technician1 3 years CAT (Community Action Team) 4 years Traffic Call Out1 3 years 1 Non-mandatory Rotational position. 2 Early opt out allowed after two years with full credit towards MPO status. 3 If grant funding is received for DUI enforcement then the assignment is two years and is counted toward MPO credit. 4 Early opt out allowed after three years with full credit towards MPO status. Packet Page 236 Item 18 Exhibit “A” 12 5 At the discretion of the Police Chief, Administrative Captain, Investigations Lieutenant, SET Sergeant, and following input from a member of the POA board of directors, one position in SET, Investigator (Property), Investigator (Persons), and Traffic may be extended two years. This extension can be reoccurring based on job performance and management recommendation. An officer can choose to decline the extension at the end of the completed rotation. At the discretion of the Police Chief, Administrative Captain, Investigations Lieutenant, SET Sergeant, and following input from a member of the POA board of directors, one position in SET, Investigator and Traffic may be extended two years. This extension can be reoccurring based on job performance and management recommendation. An officer can chose to decline the extension at the end of the completed rotation. 8.2 To be eligible for compensation under this program, an employee must receive and maintain at least a "Meets Performance Standards" rating on their evaluation. 8.3 Compensation under this program shall in no case exceed one step on the salary range. 8.4 Master Police Officer Eligibility requirements for the position of Master Police Officer are as follows: 1. One full year at Step 8 of the salary range. 2. Must have obtained an advanced POST Certificate 3. Must have successfully completed two specialty assignments and two years in a third specialty assignment. Assignments may be completed in any order. Lateral Officers having completed two comparable specialty assignments at their prior agency shall receive credit for a third specialty assignment. The comparability of specialty assignments shall be determined by the Police Chief in his/her discretion. The Chief may require an employee seeking credit for prior agency specialty assignment credit to submit satisfactory proof of successful performance in such assignments. 4. Reassignment, with a break in service, to the same assignment will be credited as a third assignment. To be credited for the purposes of Packet Page 237 Item 18 Exhibit “A” 13 compensation, an officer shall be required to complete the terms of any specialty assignment unless early departure for good cause is/was authorized by the Chief of Police. Departure for any other reaso n will forfeit MPO compensation at the time of departure. 5. The Department may, at any time, temporarily remove an employee from a specialty assignment to meet operational needs. If the cumulative total time of removal from the assignment prior to the emplo yee’s scheduled rotation date exceeds 90 days, the employee shall have the option of extending the rotation date by the total time of removal or accepting that amount of time as credit towards completion of the specialty assignment. 6. Qualified Master Poli ce Officers will be permitted to wear a two -stripe insignia (otherwise recognized as Corporal stripes) recognizing their status as determined by Department uniform policy. 7. Compensation: Police Officer Step 9. 8. The employee is responsible for requesting adv ancement to Master Police Officer. The Department will, once annually, remind employees to make such requests. Retroactive payments will not be made if the employee fails to make a timely request. 9. Once an officer achieves status of MPO s/he will be assig ned to attend the Field Training Officer Class. Once an officer achieves status of MPO s/he will be assigned to attend the Field Training Officer Class if they wish to be a Field Training Officer. At the discretion of the Police Chief he/she can select other officers to be a Field Training Officer if there are not enough MPO’s willing to be Field Training Officers to meet the department needs. The qualifications to be selected by the Police Chief will be six years of law enforcement experience with a minimum of three years working as a Police Officer with the San Luis Obispo Police Department. The Police Chief has discretion to offer FTO to an officer with less seniority if FTO spots are unable to be filled. Packet Page 238 Item 18 Exhibit “A” 14 ARTICLE 9 - FIELD TRAINING OFFICER INCENTIVE 9.1 When assigned a trainee by the Police Chief or designee, field Ttraining Oofficers will receive $50 per day. Classifications that are eligible for this incentive are Police Officers (Field Training Officers) and Communicatio ns Technicians (Communications Training Officers). Packet Page 239 Item 18 Exhibit “A” 15 ARTICLE 10 - BILINGUAL PAY 10.1 Employees certified as bilingual in Spanish through a testing process administered by the City Human Resources Department shall receive a bilingual payment of $50 100 per pay period. Additional languages may be approved by the City based upon demonstrated need. Regardless of certification, all employees shall use any language skills they possess to the best of their ability. Effective the first payroll in the month following adoption of this agreement by City Council, bilingual payment shall be $100 per pay period. Packet Page 240 Item 18 Exhibit “A” 16 ARTICLE 11 - OVERTIME - SWORN 11.1 DEFINITION A. Overtime is defined as all hours worked in excess of 160 hours worked in the employee's 28 day work period. Vacation, holidays, sick leave, IOD, and compensatory time off shall be considered hours worked when computing overtimCity or contract overtime is defined as all hours worked in excess of 160 hours worked in the employee's 2 8-day work period. Vacation, Holiday, Sick Leave, IOD (Workers Compensation), and Compensatory Time Off (CTO) shall be considered hours worked when computing overtime. All sworn employees covered by this Agreement shall be eligible for overtime pay. B. In accordance with section 207(k) of the Fair Labor Standards Act, the City has declared a twenty-eight day work period for the purpose of calculating FLSA overtime. The FLSA work period is deemed to commence at 12:01 AM on the first day of the 28 day per iod and end at 11:59 PM on the 28th day of the 28 day work period and the FLSA overtime threshold for the work period is 171 hours. This declaration is separate and apart from the City’s contractual overtime obligations set forth in section 10.1.A above. City/Contract Overtime hours shall, at the employee's option, be compensated in cash at time and one half the employee's regular rate of pay or in time off compensated at time and one half. However, no employee shall accumulate and have current credit for more than 100 hours of CTO. C. The Association and the City agree that CTO usage is subject to normal time off approval processes and may be denied if it would result in the need for overtime overage (except when scheduled in conjunction with approved vacatio n during the annual vacation sign-ups). 11.2 FLSA/STATUTORY OVERTIME A. In accordance with section 207(k) of the Fair Labor Standards Act (FLSA), the City has declared a twenty-eight-day work period for the purpose of calculating FLSA overtime. The FLSA work period is deemed to commence at 12:01 AM on Packet Page 241 Item 18 Exhibit “A” 17 the first day of the 28-day period and end at 11:59 PM on the 28th day of the 28- day work period and the FLSA overtime threshold for the work period is 171 hours. This declaration is separate and apart from the City’s contractual overtime obligations set forth in section 11.1. above. A.B. For the purpose of complying with FLSA overtime requirements, the City has adopted a dual calculation method whereby it calculates FLSA overtime in accordance with the requirements of FLSA regular rate requirements and more specifically, 29 CFR section 778.109 and 778.110. This requires the payment of FLSA overtime for all hours actually worked by non -exempt sworn personnel in excess of 171 in the 28-day work period. To the extent the City’s dual calculation method determines that FLSA overtime owed for the 28 -day work period exceeds the amount of contract overtime paid for the same work period, the difference will be paid to the employee by way of an “FLSA Adjustment” in the following City pay period. 11.2 ELIGIBILITY All sworn employees covered by this Agreement shal l be eligible for overtime pay. 11.3 COMPENSATION A. Overtime hours shall, at the employee's option, be compensated in cash at time and one half the employee's regular rate of pay or in time off compensated at time and one half. However, no employee shall a ccumulate and have current credit for more than 100 hours of compensatory time off. B. The Association and the City agree that CTO usage is subject to normal time off approval processes and may be denied if it would result in the need for overtime coverage (except when scheduled in conjunction with approved vacation during the annual vacation sign-ups). 11.4 GUARANTEED MINIMUMS FOR RETURNING TO WORK Packet Page 242 Item 18 Exhibit “A” 18 Whenever an employee is required by the department to return to work outside of the employee's normal work hour s, if a minimum applies as found in this article, then the employee has the choice of taking the minimum or taking the pay for the work actually performed. 11.5 CALL BACK Employees called back to work at hours not contiguous to their normally scheduled shift shall be guaranteed a three-hour minimum payment at time and one half. Unanticipated emergency call -backs (criminal investigations, emergency evacuations, natural disasters, civil unrest, SWAT, etc.) will include a total 30 minutes for travel time. Packet Page 243 Item 18 Exhibit “A” 19 11.6 COURT TIME A. Effective the first full pay period upon ratification, employees reporting for court duty shall be guaranteed three hours minimum payment at time and one-half. B. Employees required to work through the lunch break while on court duty shall be credited with time worked. Duty free lunch periods shall not be compensable, to a maximum of thirty (30) minutes. C. Two or more court cases occurring within the minimum time period shall be subject to a single minimum payment. D. If a scheduled court appearance is canceled on the day the employee is to appear, s/he shall be eligible for the minimum payment in this Section. 11.7 ROLL CALL BRIEFING Employees who are required to attend roll call briefing and do shall be paid for such attendance. Payment shall be considered overtime and paid as such if the hours fall within the definition of overtime. 11.8 TRAINING A. Employees called back for training sessions, authorized by the Police Chief or designee shall be guaranteed three-hour minimum payment at time and one half. B. The City shall provide each employee with paid independent living hotel/motel accommodation when assigned to a POST reimbursable training course or City required training course requiring overnight stay. Daily meal reimbursement provided shall either be a flat $36 per day or the actual amount spent as evidenced by receipts subject to the following maximum amounts (unless increased by City Policy). • Breakfast - $10.00 (regardless of whether or not a continental breakfast is provided) • Lunch - $15.00 • Commuter Lunch - $8.00 Packet Page 244 Item 18 Exhibit “A” 20 • Dinner - $25.00 • Mileage at the prescribed IRS mileage reimbursement rate. B. The City shall provide each employee with paid independent living hotel/motel accommodation when assigned to a POST reimbursable training course or City required training course requiring overnight stay. Daily meal reimbursement provided shall be a flat $60 per day subject to the following maximum amounts if not a full day (unless increased by City Policy). • Breakfast – $15.00 (regardless of whether or not a continental breakfast is provided) • Lunch – $15.00 • Commuter Lunch* - $15.00 • Dinner – $30.00 • Mileage at the prescribed IRS mileage reimbursement rate. *Commuter Lunch is defined as providing a lunch for trainings outside of the City of SLO limits. 11.9 RANGE QUALIFICATION A. Employees required to qualify with department approved firearms shall be guaranteed three hours at time and one-half when participating in range qualification training when off duty. B. Each employee who shoots for qualification shall be provided 100 rounds of practice handgun ammunition each month upon request. Employees may only receive the current month’s handgun allocation. Employees must be present to receive and sign for allotted ammunition. Employees that have been placed on administrative leave, and/or 4850 th at extends beyond 90 days shall not receive an allotment of ammunition until return from such leave. Allotments shall not accrue during the pendency of such leave and shall not be owed to an employee for the pendency of such leave. An employee on modified duty or 4850 less than 90 days may receive allotment with a note from a physician. Packet Page 245 Item 18 Exhibit “A” 21 11.10 OVERTIME ASSIGNMENT A. Prior to each shift rotation the Department creates an electronic calendar for officers to indicate their interest in overtime. Planned overtime will be called from this list in order of seniority. Employees may add and/or delete their names from this list at any time and are not required to take overtime if they are unavailable. Every effort will be made to limit overtime to no more than 12 consecutive hours for officers assigned to patrol due to safety concerns. A.B. An officer may decline a non-emergency overtime shift if s/he has worked an overtime shift of at least eight hours i n the last fourteen days. If no volunteers are available from the list, the Watch Commander may then move up to the next least senior officer on that shift for mandatory overtime. B.C. If no officer is signed up on the overtime list, management may send a notification to all qualified personnel regarding needed overtime which will be assigned to the first officer responding to the notification. 11.11 CONTRACT OVERTIME REMEDY PROVISION A. The City and the Association (hereafter “parties”) acknowledge and agree that they have met and conferred in good faith in accordance with Gov’t Code section 3500 et. seq. concerning the definition, calculation and payment of City/Contract overtime as set forth in section 11.1 of this Agreement. The parties further acknowledge and agree that the provisions of section 11.1 establish the full extent of the City’s contractual obligations to pay overtime for services rendered within the course and scope of employment by members of the bargaining unit and that to the extent individual claims for statutory overtime under the FLSA are asserted by or on behalf of any member of this bargaining unit during the term of this Agreement, such claims will not present or support a claim for contract overtime under this Agreement. Packet Page 246 Item 18 Exhibit “A” 22 ARTICLE 12 - OVERTIME - NON-SWORN 12.1 DEFINITION Overtime is defined as all hours worked in excess of 80 hours worked in a pay period. Vacation, holidays, sick leave, IOD and compensatory time off shall be considered hours worked when computing overtime. City or contract overtime is defined as all hours worked in excess of 40 hours in the seven-day work period. Vacation, holidays, sick leave, IOD and compensatory time off shall be considered hour s worked when computing City overtime. All non-sworn employees covered by this Agreement shall be eligible for overtime pay. 12.2 FLSA/STATUTORY OVERTIME The City has adopted a dual calculation method for the purpose of complying with FLSA overtime requirements. In accordance with 29 USC Section 207 (a), the City calculates FLSA overtime pursuant to 29 CFR sections 778.109 and 778.110. This requires the payment of FLSA overtime for all hours actually worked by non-exempt personnel in excess of 40 hours in the seven -day work period. To the extent the City’s dual calculation method determines that FLSA overtime owed for the seven-day work period exceeds the amount of City/contract overtime paid for the same seven -day work period, the difference will be paid to the employee by way of an “FL SA Adjustment” in the following City pay period. 12.32 ELIGIBILITY All non-sworn employees covered by this Agreement shall be eligible for overtime pay. Packet Page 247 Item 18 Exhibit “A” 23 12.3 COMPENSATION Overtime shall, at the employee’s option, be compensated in cash at time and one half the employee's regular rate of pay or in time off compensated at time and one half. Maximum accrual of compensatory time shall be 240 hours for all non-sworn classifications. 12.4 GUARANTEED MINIMUMS FOR RETURNING TO WORK Whenever an employee is required by the department to return to work outside of the employee's normal work hours, if a minimum applies as found in this article, then the employee has the choice of taking the minimum or taking the pay for th e work actually performed. 12.5 CALL BACK Employees called back to work at hours not contiguous to their normally scheduled shift shall be guaranteed a three-hour minimum payment at time and one half. Unanticipated emergency call -backs (criminal investigations, emergency evacuations, natural disasters, civil unrest, SWAT, etc.) will include a total 30 minutes for travel time. 12.6 COURT TIME A. Employees reporting for court duty shall be guaranteed three hours minimum payment at time and one-half. B. Employees required to work through the lunch break while on court duty shall be credited with time worked. Duty free lunch periods shall not be compensable, to a maximum of thirty (30) minutes. C. Two or more court cases occurring within the minimum time period shal l be subject to a single minimum payment. D. If a scheduled court appearance is canceled on the day the employee is to appear, s/he shall be eligible for the minimum payment in this Section. Packet Page 248 Item 18 Exhibit “A” 24 D.E. Personnel placed on court standby shall be compensated a minimum of three hours of straight time per calendar day when on court standby. 12.7 ROLL CALL BRIEFING Employees who are required to attend roll call briefing and do, shall be paid for such attendance. Payment shall be considered overtime and paid as such if the hours fall within the definition of overtime. 12.8 TRAINING A. Employees called back for training sessions, authorized by the Police Chief or designee shall be guaranteed three-hour minimum payment at time and one- half. B. The City shall provide each employee with paid independent living hotel/motel accommodation when assigned to a POST reimbursable training course or City required training course requiring overnight stay. Daily meal reimbursement provided shall either be a flat $36 per day or the actual amount spent as evidenced by receipts subject to the following maximum amounts (unless increased by City Policy). • Breakfast - $10.00 (regardless of whether or not a continental breakfast is provided) • Lunch - $15.00 • Commuter Lunch - $8.00 • Dinner - $25.00 • Mileage at the prescribed IRS mileage reimbursement rate. B. The City shall provide each employee with paid independent living hotel/motel accommodation when assigned to a POST reimbursable training course or City required training course requiring overnight stay. Daily meal reimbursement provided shall be a flat $60 per day subject to the following maximum amounts if not a full day (unless increased by City Policy). • Breakfast – $15.00 (regardless of whether or not a continental breakfast is provided) Packet Page 249 Item 18 Exhibit “A” 25 • Lunch – $15.00 • Commuter Lunch* - $15.00 • Dinner – $30.00 • Mileage at the prescribed IRS mileage reimbursement rate. *Commuter Lunch is defined as providing a lunch for trainings outside of the City of SLO limits. 12.9 OVERTIME ASSIGNMENT A. The Department, prior to each shift rotation, will post an overtime interest list. Planned overtime will be called from this last in order of seniority. Employees may add and/or delete their names from this list at any time. 12.10 CONTRACT OVERTIME REMEDY PROVISION A. The City and the Association (hereafter “parties”) acknowledge and agree that they have met and conferred in good faith in accordance with Gov’t Code section 3500 et. seq. concerning the definition, calculation and payment of City/Contract overtime as set forth in section 12.1 of this Agreement. The parties further acknowledge and agree that the provisions of section 12.1 establish the full extent of the City’s contractual obligations to pay overtime for services rendered within the course and scope of empl oyment by members of the bargaining unit and that to the extent individual claims for statutory overtime under the FLSA are asserted by or on behalf of any member of this bargaining unit during the term of this Agreement, such claims will not present or support a claim for contract overtime under this Agreement. Packet Page 250 Item 18 Exhibit “A” 26 ARTICLE 13 - WORK OUT-OF-GRADE Employees temporarily assigned to work in a higher classification shall receive one step (5.26%) additional pay but in no case more than the top step for the highe r classification under the following conditions: A. The assignment exceeds ten consecutive workdays, or eighty consecutive work hours, in which case the step increase becomes effective on the first workday. B. The person being temporarily replaced is on extended sick or disability leave or the position is vacant and an examination is pending. Packet Page 251 Item 18 Exhibit “A” 27 ARTICLE 14 STANDBY SWORN & NON-SWORN 14.1 DEFINITION Standby is that circumstance which requires an employee assigned by the department to: 1) be ready to respond immed iately to a call for service; 2) be readily available at all hours by telephone or other agreed upon communication equipment; and 3) refrain from activities which might impair his/her assigned duties upon call. The parties agree that employees on standby, as defined above, are "waiting to be engaged." The parties further agree there is no intent to waive any individual rights under FLSA. When an employee is engaged on the phone in excess of ten minutes to discuss department business such time will be consi dered time worked. 14.2 COMPENSATION Hourly Standby 1) Personnel placed on standby shall be compensated one-hour's pay for each five hours standby. 2) Such employees shall be paid a minimum of three hours straight time when on standby. Each calendar day starts a new standby period. Investigator/Bomb Technician Weekly Standby A. Investigators/Bomb Technicians placed on standby shall be compensated $30 per day Monday through Friday, and $35 per day for other days of standby and holidays. B. Standby shall be rotated among the assigned investigators. Normally, the standby assignment shall be for a period of one week. C. Effective the first payroll in the month following adoption of this agreement by City Council, Investigators/Bomb Technicians placed on standby shal l be compensated $45 per day Monday through Friday, and $65 per day for weekends and holidays. Packet Page 252 Item 18 Exhibit “A” 28 ARTICLE 15 - EDUCATION INCENTIVE The educational incentive pay plan shall continue as described below for sworn and non-sworn personnel for the term of this agreement. A. BASIC BENEFITS. Education incentive pay shall not begin until one year after employment with the City of San Luis Obispo, but credit will be given for approved education obtained prior to that time. The basic benefit will consist of an adjust ment equal to one-half step above the base salary for possession of an Intermediate POST certificate, A.A. or equivalent degree from an accredited community or junior college, or 60 or more semester units, or a City-approved equivalent; an adjustment equal to one full step for an Advanced POST certificate, B.A. or equivalent degree from an accredited college or university. B. JOB RELATED FIELDS. Degrees must be either in directly job related fields or include at least 30 semester, or City -approved equivalent, units of job related coursework in the case of an A.A. degree and at least 60 semester, or City-approved equivalent, units in the case of a B.A. Should an employee qualify for the one-half step basic benefit by having completed 60 or more semester units or City-approved equivalent, at least 30 of those units must be in job related coursework. All qualifying coursework must be graded at "C" or Pass or better. It is understood that gener al education courses required for a degree are compensable under this section. C. APPLICATION AND APPROVAL. Application for the incentive pay shall be made by the employee to the Chief of Police at least 30 days before the date the payment of the incentive pay is to be effective. Approval of the Chief of Police and the Director of Human Resources shall be required. Packet Page 253 Item 18 Exhibit “A” 29 D. UNSATISFACTORY PERFORMANCE. To be eligible for compensation under this program, an employee must receive and maintain at least a “Meets Performance Standards” rating on their annual evaluation. The Chief of Police, with the concurrence of the City Manager, may suspend payment of the incentive pay or the top step of the salary range, but not both, until such time as the employee's performance co mes up to the standard level, in the opinion of the Chief of Police and in concurrence of the City Manager. E. NON-APPLICABILITY. Educational incentives shall generally not be paid for education on City time. However, if the City sends an employee for trai ning on City time and college-level credits are earned during that training, those credits shall count toward education incentive. The education incentive will be removed if the employee is promoted to a position that does not entitle employees to such incentives. F. ADDITIONAL PROVISIONS. 1. The basic benefit for non-sworn employees hired prior to January 1, 2008, shall be a five percent step increase for a period of one fiscal year if during the previous fiscal year the employee has successfully completed —i.e., grades of "C" or better in all courses — a minimum of nine semester units of college level classroom work, or City -approved equivalent, approved by the Chief of Police, provided that this benefit shall be payable only for classroom work done after c ompletion of the probationary period. 2. The maximum benefit under this article is the equivalent to the one - step increase for possession of one B.A. or equivalent degree (5.26%). 3. Sworn and non-sworn employees are eligible to participate in the Tuition Reimbursement program as set forth in City Policy. Packet Page 254 Item 18 Exhibit “A” 30 ARTICLE 16 - UNIFORM ALLOWANCE 16.1 Each employee required to wear a uniform is expected to purchase and maintain in good repair all required uniform pieces. 16.2 Effective June 2016Sworn employees shall receive $1,000 per year uniform allowance, with $500 issued to the employee with the first payroll periodpay check in June and $500 issued to the employee with the first payroll periodpay check in December. Effective June 2016Nnon-sworn employees shall receive $500 per year uniform allowance, with $250 issued to the employee with the first payroll periodpay check in June and $250 issued to the employee with the first payroll periodpay check in December. New employees will receive a prorated amount. 16.3 For “Classic Members” as defined by CalPERS, uniform allowance shall be reported to CalPERS as special compensation. Uniform allowance will not be pro-rated upon separation from employment. Packet Page 255 Item 18 Exhibit “A” 31 ARTICLE 17 - HEALTH CARE INSURANCE 17.1 CONTRIBUTION The City shall contribute the monthly amounts as set forth below for Cafeteria Plan benefits for each regular, full time employee covered by this agreement. Less than full-time employees shall receive a prorated share of the City's contribution. Employee Only $559.00 Employees Plus One $1,015.00 Family $1,339.00 The Cafeteria Plan amount is inclusive of mandatory dental , vision, and life coverage. Effective the first payroll in the month following adoption of this agreement by City Council, the City will contribute the monthly amounts as set forth below for Cafeteria Plan benefits: Opt Out $ 559.00 Employee Only $ 587.00 Employee Plus One $1,066.00 Family $1,406.00 Effective December 2016 (for the January 2017 premium) and December 2017 (for the January 2018 premium) for employees participating in the PERS Health Benefit Program, the City’s total Cafeteria Plan contribution shall be increased by an amount equal to one-half of the average percentage change for family coverage in the PERS health plans available in San Luis Obispo County. For example: if three plans were available and the year -to-year changes were +10%, +15%, and +20% respectively, the City’s contribution would be increased b y 7.5% (10% + 15% + 20% ÷ 3 = 15% x 1/2). Packet Page 256 Item 18 Exhibit “A” 32 Employees shall be eligible for the City contributions set forth above based on the number of dependents they enroll in the PERS Health Benefit Program. 17.2 INSURANCE COVERAGE A. PERS Health Benefit Program The City has elected to participate in the PERS Health Benefit Program (Public Employees’ Medical and Hospital Care Act [PEMHCA]) with the PERS minimum contribution rates, currently $125.00 per month for active employees and retirees. The City's contribution will come out of that amount the City currently contributes to employees as part of the Cafeteria Plan. The cost of the City's participation in PERS will not require the City to expend additional funds toward health insurance beyond what is already provid ed. In summary, this cost and any increases will be borne by the employees. B. Health Insurance Coverage Optional Participation Employees with proof of medical insurance elsewhere are not required to participate in the PERS Health Benefit Program and may rec eive the unused portion of the City's Cafeteria Plan opt out contribution per month (after dental, vision, and life insurance is deducted) in cash in accordance with the City's Cafeteria Plan. C. Dental and Vision Insurance/Dependent Coverage Employees will be required to participate in the City's dental and vision plans at the employee only rate. Should they elect to cover dependents in the City's dental and vision plans, they may do so, even if they do not have dependent coverage under PERS. D. Long Term Disability Insurance (LTD) Sworn employees are covered for Long Term Disability Insurance through the Association and are responsible for premium payments. Non -sworn employees continue to be covered under the City’s Long Term Disability Insurance Program. E. Life Insurance Packet Page 257 Item 18 Exhibit “A” 33 Employees shall pay for life insurance coverage of Thirty-five Thousand Dollars ($35,000) through the cafeteria plan. 17.3 REPRESENTATION ON A MEDICAL PLAN REVIEW COMMITTEE The Association shall appoint one voting representative to serve on a Medical Plan Review Committee. In addition, the Association may appoint one non - voting representative to provide a wider range of viewpoint for discussion. A. Duties and Obligations of the Medical Plan Review Committee The duties and obligations of the Medical Plan Review Committee shall be to: 1. Review and suggest changes for the City's flexible benefits plan and the insurance plan offered under the MOA. 2. Submit to the City and its employee associations recommendations on proposed changes for the City's fle xible benefits plan and the insurance plans offered under the MOA. 3. Disseminate information and educate employees about the City's flexible benefits plan and the insurance plans offered under the MOA. 4. Participate in other related assignments requested by the City and its employee associations. B. Miscellaneous 1. The actions of the Medical Plan Review Committee shall not preclude the Association and the City from meeting and conferring. 2. No recommendation of the Medical Plan Review Committee on matters within the scope of bargaining shall take effect before completion of meet and confer requirements between the City and the Association, including Resolution 6620. 3. If changes to the City's flexible benefits plan are subject to meet and confer requirements, the Ci ty and the Association agree to meet and confer in good faith. Packet Page 258 Item 18 Exhibit “A” 34 4. In performing its duties, the Medical Plan Review Committee may consult independent outside experts. The City shall pay any fees incurred for this consultation, provided that the City has appr oved the consultation and fees in advance. 17.4 HEALTH INSURANCE FOR UNIT MEMBER SURVIVORS The City shall maintain and pay for the existing level of health, dental and vision benefits for one (1) year for the surviving family of an active employee who dies as a result of a job-related illness or injury. 17.5 FITNESS PROGRAM To the extent the Association wishes to discuss implementation of a Fitness Program with the City during the term of this agreement, the Association will provide the City with a written proposal setting forth the specifics of the Fitness Program. Upon receipt of the Association’s request the City will meet with the Association representatives to discuss the terms and conditions of the proposed Fitness Program. 17.1 Health Flex AllowanceCONTRIBUTION Employees electing medical coverage in the City’s plans shall receive a health flex allowance, as defined by the Affordable Care Act (“ACA”) and shall purchase such coverage through the City’s Cafeteria Plan. If the health flex al lowance is less than the cost of the medical plan, the employee shall have the opportunity to pay the difference between the health flex allowance and the premium cost on a pre-tax basis through the City’s Cafeteria Plan. If the premium cost for medical coverage is less than the health flex allowance, the employee shall not receive any unused health flex in the form of cash or purchase additional benefits under the Cafeteria Plan. Less than full-time employees shall receive a prorated share of the City’s contribution. The 2018 (plan year) and 2019 (plan year) monthly health flex allowance amounts are: Packet Page 259 Item 18 Exhibit “A” 35 The City shall contribute the monthly amounts as set forth below for Cafeteria Plan benefits for each regular, full time employee covered by this agreement. Less than full-time employees shall receive a prorated share of the City's contribution. Level of Coverage 2018 Rates 2019 Rates Employee Only $ 610 $ 623 Employee Plus One $1,108 $ 1,132 Family $1,461 $ 1,492 Employee Only $559.00 Employees Plus One $1,015.00 Family $1,339.00 The Cafeteria Plan amount is inclusive of mandatory dental, vision, and life coverage. Effective the first payroll in the month following adoption of this agreement by City Council, the City will contribute the monthly amounts as set forth below for Cafeteria Plan benefits: Opt Out $ 559.00 Employee Only $ 587.00 Employee Plus One $1,066.00 Family $1,406.00 Effective in December 2018 (for the January 2019 premium) and December 2020 (for the January 2021 premium), Effective December 2016 (for the January 2017 premium) and December 2017 (for the January 2018 premium) for employees participating in the PERS Health Benefit Program, the City’s total Cafeteria Plan contribution shall be increased modified by an amount equal to one-half of the average percentage changes for family coverage in the PERS health plans available in San Luis Obispo County. For example: if three plans were are available and the year-to-year changes were +10%, +20%, and +15-6%, and +20% Packet Page 260 Item 18 Exhibit “A” 36 respectively, the City’s contribution would be increased by 7.54% (10% + 20% + 15-6% + 20% ÷ 3 = 158% x 1/2). Employees shall be eligible for the City contributions set forth above based on the number of dependents they enroll in the PERS Health Benefit Program. 17.2 INSURANCE COVERAGE A. PERS Health Benefit Program The City has elected to participate in the PERS Health Benefit program. The City shall contribute an equal amount towards the cost of medical coverage under the Public Employee’s Medical and Hospital Care Act (PEMHCA) for both active employees and retirees. The City’s contribution toward coverage under PEMHCA shall be the statutory minimum contribution amount established by CalPERS on an annual basis. The City's contribution will come out of that amount the City currently contributes to employees as part of the Cafeteria Plan provided to employees in their various MOA's. The cost of the City's participation in PERS will not require the City to expend additional funds toward health insurance beyond what is already provided for in the various bargaining agreements. In summary, this cost and any increases will be borne by the employees. The City has elected to participate in the PERS Health Benefit Program (Public Employees’ Medical and Hospital Care Act [PEMHCA]) with the PERS minimum contribution rates, currently $125.00 per month for active employees and retirees. The City's contribution will come out of that amount the City currently contributes to employees as part of the Cafeteria Plan. The cost of the City's participation in PERS will not require the City to expend additional funds toward health insurance beyond what is already provided. In summary, this cost and any increases will be borne by the employees. 17.3 Conditional Opt-Out Packet Page 261 Item 18 Exhibit “A” 37 Employees who at initial enrollment or during the annual open enro llment period, complete an affidavit and provide proof of other minimum essential coverage for themselves and their qualified dependents (tax family) that is not qualified health plan coverage under an exchange/marketplace or an individual plan, will be allowed to waive medical coverage for themselves and their qualified dependents (tax family). The monthly conditional opt-out incentive is: Opt Out $559 The conditional opt-out incentive shall be paid in cash (taxable income) to the employee. The employee must notify the City within 30 days of the loss of other minimum essential coverage. The conditional opt -out payment shall no longer be payable, if the employee and family members cease to be enrolled in other minimum essential coverage. 17.4 Dental and Vision Insurance/Dependent Coverage Effective upon Council adoption, employee’s participation in the City's dental and vision plans is optional. Employees who elect coverage shall pay the dental and/or eye premium by payroll deductions on a pre -tax basis through the City’s Cafeteria Plan. Packet Page 262 Item 18 Exhibit “A” 38 C. Dental and Vision Insurance/Dependent Coverage Employees will be required to participate in the City's dental and vision plans at the employee only rate. Should they elect to cover dependents in the City's dental and vision plans, they may do so, even if they do not have dependent coverage under PERS. 17.5 D.Long-Term Disability Insurance (LTD) Sworn employees are covered for Long-Term Disability Insurance through the Association and are responsible for premium payments. Non-sworn employees continue to be covered under the City’s Long -Term Disability Insurance Program. 17.6 E. Life Insurance and Accidental Death and Dismemberment (AD&D) Insurance Employees shall pay for Llife and AD&D insurance coverage of Thirty-five Thousand Dollars ($35,000) through the City’s Cafeteria Plan. 17.73 Representation oOn A Medical Plan Review Committee The Association shall appoint one voting representative to serve on a Medical Plan Review Committee. In addition, the Association may appoint one non- voting representative to provide a wider range of viewpoint for discussion. A. Duties and Obligations of the Medical Plan Review Committee The duties and obligations of the Medical Plan Review Committee shall be to: 1. Review and suggest changes for the City's Cafeteria plan and the insurance plan offered under the MOA. 2. Submit to the City and its employee associations recommendations on proposed changes for the City's flexible benefitsCafeteria plan and the insurance plans offered under the MOA. Packet Page 263 Item 18 Exhibit “A” 39 3. Disseminate information and educate employees about the City's flexible benefitsCafeteria plan and the insurance plans offered under the MOA. 4. Participate in other related assignments requested by the City and its employee associations. B. Miscellaneous 1. The actions of the Medical Plan Review Committee shall not preclude the Association and the City from meeting and conferring. 2. No recommendation of the Medical Plan Review Committee on matters within the scope of bargaining shall take effect before completion of meet and confer requirements between the City and the Association, including Resolution 6620. 3. If changes to the City's flexible benefitsCafeteria plan are subject to meet and confer requirements, the City and the Association agree to meet and confer in good faith. 4. In performing its duties, the Medical Plan Review Committee may consult independent outside experts. The City shall pay any fees incurred for this consultation, provided that the City has approved the consultation and fees in advance. 17.84 Health Insurance fFor Unit Member Survivors The City shall maintain and pay for the existing level of health, dental and vision benefits for one (1) year for the surviving family of an active employee who dies as a result of a job-related illness or injury. 17.95 Fitness Program To the extent the Association wishes to discuss implementation of a Fitness Program with the City during the term of this agreement, the Association will provide the City with a written proposal setting forth the specifics of the Fitness Program. Upon receipt of the Association’s request the City will meet with the Packet Page 264 Item 18 Exhibit “A” 40 Association representatives to discuss the terms and conditions of the proposed Fitness Program. Packet Page 265 Item 18 Exhibit “A” 41 ARTICLE 18 - RETIREMENT 18.1 PERS Contracts A. “Classic Members First Tier” employees hired before December 6, 2012. The City agrees to provide the Public Employees' Retirement System's (PERS) 3% at age 50 plan to all sworn personnel and 2.7% at age 55 for all non -sworn personnel hired before December 6, 2012. The 3% at age 50 plan includes the following amendments, namely, Post Retirement Survivor Allowance, the 4th level 1959 Survivor's Benefit, military service credit, one -year final compensation, conversion of unused sick leave credit to additional retirement credit , and Pre- Retirement Optional Settlement 2 Death Benefit. The 2.7% at age 55 plan has the following amendments, the 4th level 1959 Survivor's Benefit, one-year final compensation, military service credit, conversion of unused sick leave credit to additional retirement credit, and Pre-Retirement Optional Settlement 2 Death Benefit. B. “Classic Members Second Tier” employees hired on or after December 6, 2012. Effective December 6, 2012, the City agrees to provide the Public Employee’s Retirement System’s, 2% at age 50 Full Formula for Local Safety Members using the average of the three highest years as final compensation and 2% at age 60 for all non-sworn personnel using the average of the three highest years as final compensation. The 2% at age 50 plan includes the following amendments, namely, Post Retirement Survivor Allowance, the 4th level 1959 Survivors’ Benefit, military service credit, conversion of unused sick leave credit to additional retirement credit, and Pre -Retirement Optional Settlement 2 Death Benefit. Packet Page 266 Item 18 Exhibit “A” 42 C. “New Members Third Tier” For all employees who PERS determines are “new members” within the meaning of the California Public Employees’ Pension Reform Act (PEPRA), the City will provide the PERS 2.7% at age 57 (PERS Safety Option Plan Two) retirement plan for sworn personnel and 2% at age 62 retirement plan for non -sworn personnel, using the highest three-year average as final compensation. Effective on their date of hire, new members will pay 50% of the total normal cost of the member contribution, as determined by PERS. The employee pays to PERS their contribution as allowed under Internal Revenue Service Code Section 414 (h) (2) the contribution is made on a pre -tax basis. 18.2 Member Contributions A. “Classic Members – First and Second Tier” A. Effective January 1, 2000, the City discontinued paying the “classic member” sworn employees’ share of the PERS Contribution (9%) and the “classic member” non-sworn employees’ share of the PERS Contribution (8%). The 9% and the 8% were added to the employees’ base salaries and reported as compensation to PERS. For purposes of this Article, employee contributions are based on salary and special compensation as defined by PERS. The “classic member” employee pays to PERS their contribution; as allo wed under Internal Revenue Code Section 414 (h) (2) the contribution is made on a pre-tax basis B. Effective the first full pay period January 2014 , and in accordance to the provisions of AB 340 § 7522.30 and §20516 , all “classic member” sworn and non-sworn employees shall contribute 3.0% of salary directed to the employers’ normal pension cost in addition to the employee contribution defined in the paragraph above. Effective the first full pay period July 2019, all sworn and non- sworn personnel’s additional contribution shall increase to 4.5% in addition to the employee contribution defined in the paragraph above. Effective the first full pay period in July 2020, all sworn and no n-sworn personnel’s additional contribution Packet Page 267 Item 18 Exhibit “A” 43 shall increase to 6.0% in addition to the employee contribution defined in the paragraph above. These additional contributions are in accordance to the provisions of AB 340 § 7522.30 and §20516 paying the “classic member” employees’ 9% of salary as described in paragraph A above; All of the employee contributions are made on a pre -tax basis as allowed under the Internal Revenue Code § 414 (h) (2). the contribution is made on a pre-tax basis. All “classic member” sworn employees total pension contributions shall be capped at 12.0% of salary. C. Effective the first full pay period January 2014, and in accordance to the provisions of AB 340 § 7522.30 and § 20516, all “classic member” non-sworn employees shall contribute 3.0% of salary directed to the employers’ normal pension cost in addition to the employee paying the employees’ 8% of salary as described in paragraph A above; as allowed under the Internal Revenue Code § 414 (h) (2) the contribution is made on a pre -tax basis. All “classic member” non-sworn employees total pension contributions shall be capped at 11.0% of salary. Packet Page 268 Item 18 Exhibit “A” 44 B. C“New Members Third Tier” Effective on their date of hire, new members will pay 50% of the total normal cost of the member contribution, as determined by PERS. Effective the first full pay period July 2019, all sworn and non-sworn new members shall contribute 1.5% in addition to the employee paying 50% of the normal cost. Effective the first full pay period in July 2020, all sworn and non - sworn new members contribution shall increase to 3%, in addition to the employee paying 50% of the normal cost. These additional contributions are in accordance to the provisions of AB 340 § 7522.30 and §20516. All of the employee contributions are made on a pre -tax basis as allowed under the Internal Revenue Code § 414 (h) (2). 18.3 Contract Amendment with PERS The City will submit a contract amendment to PERS requesting the employee contributions effective July 2019 and 2020 (1.5% and 3% respectively) be considered contributions to the employees account. PERS currently requires a secret ballot election among the employees affected to change the employees’ rate of contribution. The contract cannot be amended if a majority of the affected members vote to disapprove the propo sed plan. In the event a secret ballot is required by State Law and the Fire membership does not vote to approve the contract amendment, the additional contributions will still be required in accordance to the provisions of §20516(f). In this case the ad ditional contributions would not be credited to the employee’s PERS account as a normal contribution. Packet Page 269 Item 18 Exhibit “A” 45 ARTICLE 19 - SENIORITY 19.1 Overall seniority in a specific job classification (i.e., Police Officer, Communications Technician, Field Service Technician, Evidence Technician, Police Records Clerk, etc.) will prevail as the standard. All days off, vacation, holidays, and shift selections will be determined by overall seniority in a specific job classification, in compliance with department policy. T he department will continue to designate the shifts to be available; including the days off and shifts starting and stopping times. Employees will choose from those shifts designated by the department as available. 19.2 Seniority as it applies to special assignments for the officers will also fall under this standard regardless of seniority in the special assignment. This shall include all current incumbents in specialty assignments as outlined in Article 8. Packet Page 270 Item 18 Exhibit “A” 46 ARTICLE 20 - HOLIDAYS 20.1 The following thirteen days of each year are designated holidays for non -shift employees as defined in Appendix A: January 1 – New Year's Day Third Monday in January – Martin Luther King's Birthday Third Monday in February – Presidents’ Day Last Monday in May – Memorial Day July 4 – Independence Day First Monday in September – Labor Day September 9 – California Admission Day Second Monday in October – Columbus Indigenous Peoples Day November 11– Veteran's Day Fourth Thursday in November – Thanksgiving Day Friday after Thanksgiving Day December 25 – Christmas One-half day before Christmas One-half day before New Year's 20.2 When a holiday falls on a Saturday, the preceding Friday shall be observed. When a holiday falls on a Sunday, the followi ng Monday shall be observed. The Police Chief or designee may make the final determination as to whether the Holiday must be worked. 20.3 Effective May 2016 the City will transition nNon-shift employees (As defined in Appendix A) to receive the equivalent of 104 hours of holiday leave in the first pay period in January of each year. Non-shift employees’ remaining holiday leave, not to exceed 52 hours, as of the last pay period in December will be paid to the employee at the straight time rate. Holiday leave hours shall be pro -rated when an employee is appointed or leaves employment during the calendar year. The employee’s final check will be adjusted to reflect the pro-rated hours. Packet Page 271 Item 18 Exhibit “A” 47 20.4 Each Shift employee shall earn 4.33 hours of holiday leave semi -monthly, in lieu of fixed holidays. Such employees shall receive payment at straight time hourly rate not including any incentive pays for a portion of their earned holiday leave (2.0 hours) each bi-weekly payroll period. 20.5 The remainder of the Shift employee’s annual holiday leave (52 hours) shall be advanced to the employee effective the first payroll period in January of each year. Such holiday leave may be taken off by the employee with the approval of the Police Chief or his designee. 20.6 Each calendar quarter, a Shift employee has the option of receiving payment for one-fourth (1/4) of his/her advanced holiday leave. The combination of ho liday leave taken off and payment of advanced holiday time may not exceed 52 hours. Any holiday leave remaining as of the last payroll period in December of each year will be paid to the employee at the straight time rate. If an employee terminates for any reason, having taken off hours in excess of his/her prorated share, the value of the overage will be deducted from the employee’s final paycheck. Packet Page 272 Item 18 Exhibit “A” 48 ARTICLE 21 - VACATION 21.1 Full time employees shall accrue vacation leave with pay at the rate of 96 hours per year of continuous service since the benefit date for the first five years, 120 hours per year upon completion of five years, 144 hours per year upon completion of 10 years, and 160 hours upon completion of 20 years. 21.2 All employees may accrue a maximum of vacation time not to exceed twice their annual rate. 21.3 Vacation Sellback All employees in this unit are eligible, once annually in December, to request payment for up to 80 hours of unused vacation leave provided that an employee's overall performance and attendance practices are satisfactory. Payment for unused vacation leave is subject to the availability of budgeted funds. 21.4 Patrol Vacation Assignment Prior to November 1st, the master vacation schedule shall provide that two officers per watch shall be allowed to sign up for priority vacation for the following year. The Department, under normal circumstances, dependent upon staffing level needs, may accommodate up to a maximum total of two officers per day per shift of accrued leave. Accrued leave includes compensatory time, vacation leave and/or holiday leave. Subject to the limitations above, after the posting of shifts/days off for each shift rotation, employees shall be allowed, by seniority, additional available vacation days one month (28 days or 2 pay periods) prior to the start of the rotation. Packet Page 273 Item 18 Exhibit “A” 49 Subject to unforeseen events, employees may be allowed to sign up for additional available vacation days. The department shall make every effort to grant such requests subject to operational needs and such requests shall not be unreasonably denied. Prior to or on November 1st, three Master Vacation Schedules (Primary, Second and Third) shall be posted for signup for the following year. The Primary Master Vacation Calendar will close two weeks prior to the start of the winter rotation and will cover winter, summer and fall rotations. Time off shall be given based on seniority as follows: Watch Includes Day Watch Patrol Team 1/2 Day Watch Specialty Traffic, CAT, Day Metro Night Watch Patrol Team 3/4 & Night Metro Night Watch Swings Team 5 Packet Page 274 Item 18 Exhibit “A” 50 The Master Vacation Schedule shall provide the following: Day Watch – A maximum of two Officers from Day Watch Patrol and a maximum of two Officers from Day Watch Specialty shall be granted priority vacation for the following year. If the total number of Day Watch Specialty Officers is 5 or less due to a staffing shortage (positions are frozen, unfilled or sent back to Patrol), only one Day Watch Specialty Officer will be granted priority vacation for the following year. Night Watch – A maximum of two Officers from Night Watch Patrol and a maximum of one Officer from Night Watch Swings shall be granted priority vacation for the following year. If less than two Night Watch Patrol Officers request priority vacation on a given date, a second Officer from Ni ght Watch Swings shall be granted priority vacation on that date. Subject to the limitations above, Officers shall be allowed to request, by seniority, additional available vacation days using the Second and Third Master Vacation Schedules. The Second Master Vacation Schedule will cover summer and fall rotations, will close two weeks prior to the start of the summer rotation and shall be subservient to the Primary Master Vacation Schedule. The Third Master Vacation Schedule will cover the fall rotation, will close two weeks prior to the start of the fall rotation and shall be subservient to the Secondary Master Vacation Schedule. The department shall make every effort to gra nt these requests but may deny them based on pre -existing scheduled modifications or operational staffing needs. The Department, under normal circumstances, dependent upon staffing level needs, may accommodate additional Officer use of accrued leave. Acc rued leave includes compensatory time, vacation leave and/or holiday leave. The department shall make every effort to grant such requests subject to operational staffing needs and such requests shall not be unreasonably denied. Packet Page 275 Item 18 Exhibit “A” 51 ARTICLE 22 - SICK LEAVE 22.1 Sick leave is governed by Section 2.36.420 of the Municipal Code. 22.2 Upon termination of employment by death or retirement, a percentage of the dollar value of the employee's accumulated sick leave will be paid to the employee, or the designated beneficiary or beneficiaries, according to the following scheduleretirement the employee may choose : 1) a payout of the employee’s accumulated sick leave balance based on years of service according to the following schedule, 2) to convert a portion or all of the employee’s sick leave balance to service credit in accordance with CalPERS regula tions, or, 3) a combination of these two options. Upon termination by death of the employee a percentage of the dollar value of the employee’s accumulated sick leave will be paid to the designated beneficiaries according to the following schedule: A. Death – 50% B. Retirement and actual commencement of PERS benefits: • After twenty years of continuous employment – 20% • After twenty-five years of continuous employment – 25% • After thirty years of continuous employment – 30% C. Job related disability retirement and actual commencement of PERS benefits – 75% with maximum of 1,000 hours payoff. D. Sick leave cannot be used to postpone the effective date of an industrial disability retirement. This provision is intended to reiterate past practice and to exercise the employer’s rights under Government Code, Section 21163. E. Employee use of sick leave shall be deemed confidential and not subject to reporting in monthly or annual personnel evaluat ions without proof of abuse. Packet Page 276 Item 18 Exhibit “A” 52 ARTICLE 23 - FAMILY LEAVE 23.1 An employee may take up to 48 hours of sick leave per year if required to be away from the job to personally care for a member of his/her family. 23.2 “Family member” is defined as: 1) A child, which for purposes of this article means a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in loco parentis. This definition of a child is applicable regardless of age or dependency status. 2) A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee’s spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child. 3) A spouse. 4) A registered domestic partner. 5) A grandparent. 6) A grandchild. 7) A sibling, step-brother, or step-sister. 8) Any other relative living in the same household. 9) Or any other relative as defined by Labor Code 233 and/or Assembly Bill 1522. 23.3 An employee may take up to 56 hours of sick leave per year i f the family member is part of the employee's household and is hospitalized. The employee shall submit written verification of such hospitalization. 23.4 The amounts shown above are annual maximums, not maximums per qualifying family member. 23.5 In conjunction with existing leave benefits, unit employees with one year of City service who have worked at least 1 ,250 hours in the last year may be eligible for Packet Page 277 Item 18 Exhibit “A” 53 up to 12 weeks of Family/Medical Leave within any 12 -month period. Family/Medical leave can be used for: A. A new child through birth, adoption or foster care (maternal or paternal leave). B. To care for the employee’s spouse, son, daughter, parent, or registered domestic partner who has a serious health condition. C. Placement of an employee's child for a doption or foster care. D. A serious health condition, which makes the employee unable to perform the functions of his or her position. E. To assist a spouse, son, daughter, or parent who is a member of the Armed Forces, including the National Guard or Reserves with a “qualifying exigency” related to covered active duty or a call to active duty status. F. To care for a son or daughter, spouse, parent or “next of kin” covered service member with a serious injury or illness. This leave shall be in addition to leave available to employees under the existing four-month Pregnancy Disability Leave provided by California law. Paid leave, if used for family leave purposes or personal illness, will be subtracted from the 12 weeks allowed by the Family/Medical Leave Program. Employees must use all available vacation, compensatory time off and holiday leave and, if appropriate, sick leave prior to receiving unpaid Family/Medical Leave. 23.6 Employees on Family/Medical Leave will continue to receive the City's contribution towards the cost of health insurance premiums. However, employees who receive cash back under the City's flexible benefit Plan will not receive that cash during the Family/Medical Leave. The City will pay only City group health insurance premiums. 23.7 If an employee does not return to work following Family/Medical Leave, the City may collect the amount paid for health insurance by the City during the leave. There are two exceptions to this rule. Packet Page 278 Item 18 Exhibit “A” 54 A. The continuation of a serious health condition of the employee or a covered family member prevents the return. B. Circumstances beyond the employee's control. Packet Page 279 Item 18 Exhibit “A” 55 ARTICLE 24 - BEREAVEMENT LEAVE At each employee's option, sick leave may be used for absence from duty due to the death of a member of the employee's immediate family, meaning spouse, child, brother, sister, parent, parent-in-law, step-parent, step-brother, step-sister, grandparent, grandchild, or any other relative living in the same household, provided such leave as defined in this Article shall not exceed 40 hours for each incident. The employee may be required to submit proof of relative's death before being granted sick leave pay. False information given concerning the death or relationship shall be cause for discharge. Packet Page 280 Item 18 Exhibit “A” 56 ARTICLE 25 - CATASTROPHIC LEAVE 25.1 Upon request of an employee and upon approval of the Chief of Police, leave credits (vacation, compensatory time off, or holiday time) may be transferred from one or more employees (donors) to another employee (recipient). The recipient may participate in the program under the six following conditions: A. The recipient is a regular employee. B. The recipient has sustained a life threatening or debilitating illness, injury or condition (The Chief may require that the condition be confirme d by a doctor's report.); or, C. A member of the recipient's immediate family, as defined in Article 24, has sustained a life threatening or debilitating illness, injury or condition (The Chief may require that the condition be confirmed by a doctor's report.). D. The recipient has exhausted all paid leave; or, in the case of illness of or injury to a recipient's immediate family member, all allowed leave. E. The recipient must be prevented from returning to work for at least 30 days and have applied for a leave of absence without pay for medical reasons. This condition does not apply when the illness or injury involves a member of the recipient's immediate family, rather than the recipient. F. The request for participation in the program shall be made on an Applicatio n for Catastrophic Leave Program form. 25.2 Transferring Time The following rules apply when donations of time occur: A. Vacation, compensatory time off, and holiday leave may be transferred by regular employees. B. The time will be converted from the type of l eave given (i.e. vacation, holiday, etc.) to sick leave or family care leave, whichever is appropriate, and credited to the recipient's leave time balance on an hour -for-hour basis and shall be paid at the rate of pay of the receiving employee. Packet Page 281 Item 18 Exhibit “A” 57 C. The donations must be a minimum of four hours and, thereafter, in whole hour increments. D. The total leave credits received by the employee shall normally not exceed three months; however, if approved by the Chief, the total leave credits received may be up to a maximu m of six months. E. Recipients of family care leave will be allowed to use all hours received, up to the limits of this policy (see D. above), even though such use exceeds the limits for family care leave found in Article 2 3. F. Donations approved shall be made on a Donation of Time Credits form signed by the donating employee. These donations are irrevocable under any conditions. 25.3 Appeal Rights If an employee is denied participation in the program by the Chief, he/she may appeal this initial decision jointly to the Director of Human Resources and the City Manager. Article 32–Grievance Procedure shall be used for final resolution . Packet Page 282 Item 18 Exhibit “A” 58 ARTICLE 26 - WORKERS' COMPENSATION LEAVE Any employee who is absent from duty because of on -the-job injury in accordance with State Workers' Compensation law and is not eligible for disability payments under Labor Code Section 4850 shall be paid the difference between his /her base salary and the amount provided by Workers' Compensation law during the first 90 business days of such disability absence. Packet Page 283 Item 18 Exhibit “A” 59 ARTICLE 27 - JURY DUTY AND MILITARY LEAVES 27.1 JURY DUTY Any regular or probationary City employee, when duly called to serve on any jury, and when not excluded there from, or when subpoenaed to appear as a witness at any trial, shall be compensated for the time required to be spent under the jurisdiction of the court by an amount equal to the difference between the pay he/she received as a juror and his/her regular daily rate received from the City. The difference between the time required to be spent on jury duty and the normal workday of the employee shall be spent performing the employee’s regular job assignments unless the department head, upon approval of the Director of Human Resources, determines this not to be practical. Non-sworn employees assigned to night shift and called to serve on a jury or subpoenaed to appear as a witness at any trial, may request the supervisor to flex her/his schedule within the work period to accommodate the required jury duty. In the event the supervisor is unable to flex the work schedule and the employee is required to report to jury duty on the same day s/he is scheduled to work, s/he will report the number of hours spent on jury duty to the supervisor and will be allowed to begin her/his shift an equal number of hours later. In this case, the employee will be compensated for the time required to be spent under the jurisdiction of the court by an amount equal to the difference between the pay s/he received as juror/witness and her/his regular daily rate received from the City. 27.2 MILITARY LEAVE Any line-item employee shall receive normal salary and fringe ben efits during the first thirty days of any period of temporary military leave. Such compensation shall not exceed thirty calendar days in any one fiscal year. Any temporary military leave in excess of thirty days in one fiscal year shall be taken as vacation leave or leave of absence without pay. Packet Page 284 Item 18 Exhibit “A” 60 ARTICLE 28 - GENERAL PROVISIONS 28.1 Payday Paychecks will be disbursed on a bi -weekly schedule. Payday will be every other Thursday. This disbursement schedule is predicated upon normal working conditions and is subject to adjustment for cause beyond the City's control. 28.2 Salary Survey Agencies For the purposes of external comparisons the agencies to be used for review of compensation shall be: • Gilroy • Monterey • Napa • Petaluma • Pleasanton • Salinas • Santa Barbara • Santa Cruz • Santa Maria Parties agree that this survey shall be based on total compensa tion and shall only be one of the considerations used to determine compensation. Packet Page 285 Item 18 Exhibit “A” 61 ARTICLE 29 - RESIDENCY REQUIREMENTS An officer's place of residence shall be within a one and one-half (1 ½) hour driving radius from the San Luis Obispo Police Department. Packet Page 286 Item 18 Exhibit “A” 62 ARTICLE 30 - PROMOTIONAL POLICY Promotions from Police Officer to Police Sergeant shall be subject to the following: A. Job Announcement. When the Police Department notifies the Department of Human Resources of a Sergeant position vacancy, the Department of Human Resources will publish a job announcement. The job announcement will identify the selection procedure, which includes the application process, test components with their weights expressed as a percentage of the total score, and tentative dates of the testing schedule. Whenever available, the City will identify study materials at least 60 days in advance of a test. B. Application Process. A completed City application must be received in the Department of Human Resources by the filing deadline. C. Testing Components. A. Written Test: The written test will count as 30% of the final score. 1. A standardized written test with performance category questions to include department policies and procedure, state law, applicable case law and basic supervisory techniques. If available, the City will provide a list of suggested study materials. The written test will be prepared by an outside third party that specializes in preparing such type exams. 2. A score of 70% or better on the written test will enable a cand idate to proceed in the testing process. A score below 70% will disqualify a candidate from further consideration. 3. All candidates will have the right to review with a representative from the Department of Human Resources their own written test results so that the candidate may have the opportunity to improve in the future. Packet Page 287 Item 18 Exhibit “A” 63 4. The Chief or his/her designee will review the test before it is given to ensure that the exam contains material relevant to a supervisory position in San Luis Obispo. B. Assessment Center will count as 70% of the final score. 1. The Assessment Center may consist of 2 or more exercises. One of these exercises will be a traditional oral board interview. Other exercises may include a situational role-playing, oral resume, simulation exercises; and a supplemental questionnaire to assess written communication, critical thinking, problem solving and leadership skills, or other testing instruments as determined by the Human Resource Director in consultation with the Police Chief. The Human Resource s Director shall determine the weight of each Assessment Center activity. In no case shall the oral interview count less than 70% of the total Assessment Center score. 2. The panel of evaluators will consist of the following: at least three external members consisting of two (2) law enforcement members and one (1) non-law enforcement and as many City employees as deemed appropriate by the Director of Human Resources in consultation with the Chief of Police. C. Chief of Police Review: 1. Sworn SLOPD Staff members will be required to complete a Staff evaluation form for each candidate. Staff evaluation form will consist of five categories for each candidate. The categories will be created by the Police Chief (or designated representative) in consultation with the Director of Human Resources. Packet Page 288 Item 18 Exhibit “A” 64 2. There will be four possible scores for each category on the evaluation form. The last section of the evaluation form will allow for comments on the following two topics: “Candidates Strengths” “Candi dates Weakness(es)”. Staff evaluation forms are not weighted and are advisory to the Chief of Police. 3. Subject to the approval of the Police Chief, if supervisor feels s/he is unable to conduct an impartial evaluation due to unfamiliarity with a given applicant, s/he may opt not to evaluate the candidate but will be required to document the lack of familiarity on the evaluation form. 4. Sworn personnel of the same or lessor rank will have the opportunity to participate in the evaluation process on a volunt ary basis. Peer evaluation forms will be the same format as the Staff evaluation forms. The preparer of the peer evaluation form will be anonymous. Peer evaluation forms are not weighted and are advisory to the Police Chief. 5. The Police Chief will meet with all department supervisors who are capable of attending the monthly staff meeting to discuss candidates. All supervisors in attendance will be allowed to provide input about each candidate. 6. The Chief shall review the candidate’s personnel files , the completed Staff evaluation forms, Peer evaluations forms and take into consideration comments provided at the Staff meeting prior to making an appointment. D. Final Selection. A. Upon completion of the testing process, the Department of Human Resources shall tabulate the scores. B. Candidates will be ranked by total score. Candidates scoring below 70% will be ranked unqualified and not placed on the eligibility list. Each candidate will be individually given his/her score in writing. Candidates who are ranked 1 through 3 (plus one for each additional vacancy if there is more than one vacant position) Packet Page 289 Item 18 Exhibit “A” 65 will be considered equally qualified for promotion and eligible for appointment by the Police Chief. C. Final selection by the Police Chief will be in accordance with the City’s Personnel Rules and Regulations. The Police Chief will conduct a final selection interview with the top three candidates (plus one fo r each additional vacancy over one). D. The eligibility list shall be valid for one year unless extended, in accordanc e with the City’s Personnel Rules and Regulations. The timing of establishing a new eligibility list will be subject to the department’s goal of maintaining a current eligibility list at all times in order to fill projected vacancies. Packet Page 290 Item 18 Exhibit “A” 66 ARTICLE 31 - PERFORMANCE EVALUATIONS 31.1 All regular full-time employees shall receive an annual written performance evaluation from their supervisor within thirty (3 0) days of the employee’s anniversary date absent exceptional circumstances. All regular full -time employees shall also receive rotational written performance feedback from their supervisor, except for those employees that do not rotate supervisors (e.g. Records Clerks) or employees on special assignments (e.g. DT bikes, CAT). 31.2 For purposes of uniformity in the performance evaluation process, the following definitions are provided: 1. UNACCEPTABLE Consistently fails to meet performance standards and objectives for the position. Performance indicates serious lack of knowledge of basic skills or lack of application of skills. Requires immediate attention and improvement. 2. IMPROVEMENT NEEDED Performance is frequently less than expected of a competent employee for the position. Performance indicates some deficiency in basic skill, knowledge or application. Specific efforts to improve desired. 3. MEETS PERFORMANCE STANDARDS Performance indicates competent and effective adherence to expected standards. Performance indicates fully acceptable demonstration of knowledge and skills. 4. EXCEEDS PERFORMANCE STANDARDS Packet Page 291 Item 18 Exhibit “A” 67 Performance consistently above standards for position. Performance indicates superior knowledge and application of skills. 5. OUTSTANDING Exceptional performance. Application of knowledge, skills and results are consistently well beyond the expected standard for position. For employee performance evaluations e ffective January 1, 2019 and ongoing, performance categories will be consolidated to the following three options: 1. Below Performance Standards: Performance is frequently less than expected of a competent employee for the position. Performance indicates some deficiency in the basic skill, knowledge or application. Specific efforts to improve is required. 2. Meets Performance Standards: Performance indicates competent and effective adherence to expected standards. Performance indicates fully acceptable demonstration of knowledge and skills. 3. Exceeds Performance Standards: Performance consistently above standards for position. Performance indicates superior knowledge and application of skills. 31.3 All regular full -time employees shall receive their annual step increase effective on the employee’s anniversary or promotional date and upon completion of a written performance evaluation. Police Cadets do not receive written performance evaluations from the City as they are evalu ated by the Academy in which they are enrolled.on the employee’s anniversary date regardless of whether the evaluation process has been completed, absent exceptional circumstances. Packet Page 292 Item 18 Exhibit “A” 68 31.4 Employees shall have the right to review their personnel file or authorize, in writing, review by their representative. No adverse material will be placed in an employee’s personnel file without prior notice and a copy given to the employee. An employee shall have 30 days within which to file a written response to any evaluation and/or adverse comment entered in his/her personnel file. Such written response shall be attached to, and shall accompany, the adverse comment. Packet Page 293 Item 18 Exhibit “A” 69 ARTICLE 32 - GRIEVANCE PROCEDURE 32.1 A grievance is defined as an alleged violation, misinterpretation or misapplication of the Employer-Employee Resolution, the Personnel Rules and Regulations, this MOA or any existing written policy or procedure relating to wages, hours or other terms and conditions of employment excluding disciplinary matters. A grievance filed by an individual employee should be clearly identified as a formal grievance. This will be accomplished through the use of a formal grievance form (See Appendix B). 32.2 Any employee may file and process a grievance by providing the time, place and circumstances of the action prompting the grievance. A formal grievance should be filed only after the employee has attempted to resolve the disagreement with his/her immediate supervisor. As a courtesy, the employee should advise his/her supervisor of any intention to file a formal grievance. This action must take place within 15 business days of the occurrence of the grievance. Employees may be accompanied by a representative at each step of the process. If a specific action to be grieved affects several employees, those employees may consolidate their grievances and be represented. 32.3 Each grievance shall be handled in the following manner: A. The employee who is dissatisfied with the response of the immediate supervisor should discuss the grievance with the supervisor’s immediate superior. If the matter can be resolved at that level to the satisfaction of the employee, the grievance shall be considered terminated. B. If still dissatisfied, the employee may immediately submit the grievance in writing to the Chief for consideration, stating the facts on which it was based, including the provision of the rules, regulations, agreement, or written policy said to be violated, and the proposed remedy. This action must take place within fifteen business days of the occurrence of the grievance. Packet Page 294 Item 18 Exhibit “A” 70 32.4 After consideration of a formal grievance, which could include consultation and/or further discussion, the Chief, within 15 business days of the filing of the formal grievance, will provide a written response to the employee representatives advising of his/her decision. If the employee accepts the Chief’s decision, the grievance shall be considered terminated. 32.5 If the employee is dissatisfied with the Chief’s decision, the employee may immediately submit the grievance in writing to the Human Resources Director within five business days of receiving the Chief’s decision. The Human Resources Director shall confer with the employee and the Chief and any other interested parties and shall conduct such other investigations as may be advisable. 32.6 The results or findings of such conferences and investigations shall be submitted to the City Manager in writing within fifteen business days of receiving the employee’s written request. The City Manager will meet with the employee if the employee so desires before rendering a decision with respect to the complaint. The City Manager’s decision shall be in writing and given to the employee with in fifteen business days of receiving the Human Resources Director’s results and findings. Such decision shall be final unless the employee requests an appeal of the decision. 32.7 Hearing Officer – A grievance is appealable, following several preliminar y steps, to a Hearing Officer whose decision shall be final and binding: A. The employee will have five business days following receipt of the City Manager’s decision to submit a written request to the Human Resources Director for review of the decision. Th e Human Resources Director will obtain a list of five potential hearing officers from the State Mediation and Conciliation Service. Then following a random determination of which party Packet Page 295 Item 18 Exhibit “A” 71 (City or appellant) begins, parties shall alternately strike one name from the list until only one remains. B. Within thirty business days the hearing officer shall review the record and conduct a hearing on the matter. Within ten business days the hearing officer shall render a decision, which shall be final and binding. C. Any dispute regarding the eligibility of an issue for the grievance process may be appealed through the process ultimately to the Hearing Officer who shall decide on the eligibility prior to ruling on the merits. D. Any fees or expenses of the Hearing Officer shall be payable one-half by the City and one-half by the appellant. 32.8 Provided that implementation processes are correctly followed, amending the Employer-Employee Resolution or the Personnel Rules and Regulations or creating new or amended written policies or procedures may not be grieved but shall first be subject to notice and consultation or meeting and conferring with the Association as provided in the Employer–Employee Relations Resolution, MOA Article 36 “Notice to the Association”, and/or by State Law. 32.9 Disciplinary matters are excluded in Section 3 2.1. The rules governing disciplinary matters for employees covered by this MOA are contained in Sections 2.36.320 through 2.36.350 of the Personnel Rules and Regulations of the City of San Luis Obispo. Packet Page 296 Item 18 Exhibit “A” 72 ARTICLE 33 - LAYOFFS 33.1 Layoffs shall be governed by job performance and seniority in service within the department and job classification. For the purpose of implementing this provision, job performance categories shall be defined as follows: Category I: Performance that is Unacceptable or Improvement Needed or Below Performance Standards. Performance defined by this category is evidenced by the employee's two most recent performance evaluations with an overall rating that falls within the lowest two categories of the performance appraisal report. Category II: Performance that Meets Performance Standards, Exceeds Performance Standards, or is Outstanding. Performance defined by this category is evidenced by an employee's two most recent performance evaluations with an overall rating that falls within the top three performance categories of the performance appraisal. 33.2 A regular employee being laid off shall be that employee with the least seniority in the particular job classification concerned who is in the lowest job performance category. Employees in Category I with the lowest seniority will be laid off first, followed by employees in Category II. Should the two performance evaluations contain overall ratings that are in the two different Categories as defined above, the third most recent evaluation overall rating shall be used to determine which performance category the City shall use in determining order of layoffs. Packet Page 297 Item 18 Exhibit “A” 73 33.3 The parties agree that employees who are laid off pursuant to this Article shall have reemployment rights prior to the employment of individuals on an open or promotion list. The employee to be r ehired must, at the time of rehire, meet the minimum qualifications as stated in the appropriate class specifications. Employees will be rehired on the basis of last out, first in. Packet Page 298 Item 18 Exhibit “A” 74 ARTICLE 34 - WORK ACTIONS 34.1 Participation by an employee in a strike or a concerted work stoppage is unlawful and shall terminate the employment relation. Provided, however, that nothing herein shall be so construed as to affect the right of any employee to abandon or to resign his employment. 34.2 The Association shall not hinder, delay, interfere, or coerce employees of the City in their peaceful performance of City services by strike, concerted work stoppage, cessation of work, slow-down, sit-down, stay-away, or unlawful picketing. 34.3 In the event that there occurs any strike, concerted work stoppage, or any other form of interference with or limitation of the peaceful performance of City services prohibited by this Article, the City, in addition to any other lawful remedies or disciplinary actions, may by the action of the Municipal Employee Relations Officer cancel any or all payroll deductions, prohibit the use of bulletin boards, prohibit the use of City facilities, and withdraw recognition of the Association. 34.4 Employee members of the Association shall not be locked out or prevented by management officials from performing their assigned duties when such employees are willing and able to perform such duties in the customary manner and at a reasonable level of efficiency. 34.5 Any decision made under the provisions of this Article may be appealed to the City Council by filing a written Notice of Appeal with the City Clerk, accompanied by a complete statement setting forth all of the facts upon which the appeal is based. Such Notice of Appeal must be filed withi n 10 working days after the Association first received notice of the decision upon which the complaint is based, or it will be considered closed and not subject to any other appeal. Packet Page 299 Item 18 Exhibit “A” 75 ARTICLE 35 - COMMUNICATION PROCESS 35.1 Conferences There will be meetings as needed between the Chief of Police and management member(s) and at least two Association representatives to discuss problems or other subjects of mutual interest. Minutes of the meeting will be maintained to reflect topics discussed, actions to be taken, the party responsible for any action and the expected completion date. 35.2 Quarterly Meetings Two to four representatives of the Association, the City Manager (or designee), Chief of Police (or designee), and management representative(s) desi gnated by the City will meet quarterly if there are issues of concern to the parties. No issues will be brought to this quarterly meeting without first having been discussed with the Chief of Police at a previous conference. Packet Page 300 Item 18 Exhibit “A” 76 ARTICLE 36 - NOTICE TO THE ASSOCIATION Prior to making changes directly and primarily relating to matters within the scope of representation, the City shall give the Association advance notice and the opportunity to meet and confer with City representatives prior to making the change(s). Packet Page 301 Item 18 Exhibit “A” 77 ARTICLE 37 - EQUIPMENT A. The City agrees to provide each sworn employee of the Association a nylon basket weave duty gun belt as their primary duty gun belt. Upon request, the City also agrees to provide each sworn employee of the Association a smooth nylon utility belt and related accessories. The smooth nylon utility belt will only be worn as directed by the Chief of Police. The nylon basket weave duty gun belt and nylon smooth utility belt will become the property of the employee and the employee agrees to maintain these pieces of equipment. The smooth nylon utility belt will consist of: belt, handcuff case, chemical spray holder, baton holder (to fit the baton carried by the employee), magazine case (to fit the magazines carried by the employee), holster (to fit the weapon carried by the employee), radio holder (to fit the radio carried by the employee), and four belt keepers. Any other accessories will be the responsibility of the employee. B. All appropriate classifications shall be issued A-Level IIIA Ballistic Helmet with riot face shield fixed. C. All appropriate classification shall be issued a chemical protective breathing mask fitted with belt mounted carrying bag. All protective masks shall be in compliance with CalOSHA minimum standards including employee training. D. Non-sworn employees not subject to assignments necessitating helmets/chemical masks will not have them issued. E. All appropriate classifications shall be issued a Stream Light model SL –20 or technologically similar rechargeable flashlight with 12V/120V charging systems. F. Each marked police unit assigned to unit members shall be equipped with: 1. A Patrol rifle fitted with a hands free assault sli ng and stock mounted weapon light. Packet Page 302 Item 18 Exhibit “A” 78 2. A 12-guage pump shotgun fitted with an extended magazine, hands -free assault sling and stock-mounted weapon light; and 3. A 12-guage pump shotgun designated “less lethal” fitted with a hands-free assault sling and stock-mounted weapon light. Notwithstanding the above, the City retains the right to select the specific equipment necessary to fulfill its obligation to provide necessary and appropriate safety equipment. G. All department owned firearms are to be subject to annual in spection by a certified department armorer or independent Gun Smith. The certified department armorer or independent Gun Smith shall provide an inspection report for each firearm inspected. Firearms with noted defects, wear and tear, or questionable serviceability shall be replaced and not returned to service. Packet Page 303 Item 18 Exhibit “A” 79 ARTICLE 38 - TEMPORARY MODIFIED DUTY The City and the Association have met and conferred on a modified duty/return to work policy, which is established by mutual agreement as Police Department Lexipol Policy #1052. Packet Page 304 Item 18 Exhibit “A” 80 ARTICLE 39 - WORK SCHEDULES 39.1 Patrol 3/12 Work Plan A. In an effort to improve scheduling, the Chief of Police implement ed a 3/12 Work Hour Plan. B. The basic work pattern for sworn officers on patrol shall be three 12 -hour days each week, plus assigned pay back. Swing shift officers shall be assigned to work a 4/10 shift. Employees will normally be assigned to work 160 hours in a 28-day work cycle. In addition, employees who attend shall be compensated for briefing time. C. If an employee does not work the full 160 hours in a 28 -day work cycle, the City shall deduct the unworked hours from an employee’s accrued holiday or vacation balances, unless the unworked hours result for reasons of excused paid absence or because the City did not assign a pay-back shift. 39.2 Shift Adjustment Management and the POA reaffirm that scheduling is a management responsibility. However, in the matter of shift adjustment policies, it is agreed that the following guidelines will be followed: A. In any situation necessitating a shift adjustment, volunteers will first be sought. B. Shift adjustments will not be for more than two hours. C. Shift adjustments for special units or assignments are not covered by this guideline and remain the discretion of the Unit Supervisor or Bureau Commander. D. Whenever volunteers cannot be located, Officers assigned will be chose n sequentially by seniority. Packet Page 305 Item 18 Exhibit “A” 81 E. Generally, no more than two Officers per shift should be ordered to adjust unless a specific event necessitates it. F. At least 14 days’ notice will normally be given, but in no event will less than seven days’ notice be given, for an ordered shift adjustment. G. An Officer authorized to shift adjust will not suffer loss of briefing pay or other normal benefit. H. Officers will be given at least ten hours between shifts for ordered non - emergency shift adjustments. I. Shift adjustments will not be ordered to deal with court or shift continuation unless it is necessary to insure the Officer has adequate rest. If court or another assignment prevents an Officer from getting proper rest between shifts, the Officer and the Watch Commander may arrange a shift adjustment to meet this need. With approval, the Officer cou ld opt to use adjusted court time towards normal work hours instead of overtime, or to adjust shift start time up to four hours. In cases where the Watch Commander determines an adjustment is warranted but does not have sufficient manpower, s/he is authorized to bring in a replacement (on O/T) for up to four hours. J. Shift adjustments will not be limited by day or time except as articulated above. K. It is noted that either party may reopen these issues at the time of contract renewal. 39.3 Communications Technician 3/12 Work Schedule I. SHIFT ASSIGNMENTS: A. Work shift assignments will consist of Day Watch and Day Watch relief, 0700 hours-1900 hours, Night Watch and Night Watch relief, 1900 hours -0700 hours (with the exception of shift adjustments as defined in Section VI). Packet Page 306 Item 18 Exhibit “A” 82 B. The work schedule is defined as eighty (80) hours during a fourteen (14) day schedule. The eighty-hour work period shall consist of a total of six (6) twelve (12) hour shifts with one eight (8) hour payback shift. A work week is defined as three (3) twelve (12) hour shifts with one eight (8) hour payback shift attached during the fourteen (14) day work schedule. Days off shall be in conjunction with the employee work week and not split unless there is consent by the employee. Example: Week one, M, T, W, week two, M, T, W, TH (8 Hour Payback.) C. Paybacks shall be scheduled for eight (8) hours during the employee’s normal work hours in conjunction with workdays by seniority. D. Every employee shall sign up for a relief shift before another employee is assigned to work a second relief shift. 1. The day watch relief will be assigned to cover absences for Communications Technicians on day watch and the night watch relief will be assigned to cover absences for Communicat ions Technicians on night watch. Relief will only be assigned to cover the opposite shift by seniority (e.g. day covers for night) when staffing vacancies exist or when necessitated by special events or circumstances (e.g. Mardi Gras). Permanent and temporary shift vacancies may be staffed by reassignment of the relief shift with seven (7) days prior notice or by voluntary agreement. 2. Relief will not be scheduled to work a shift in the middle of days off. Example: Week one, M, T, W, off, F, off, off. 3. Relief will have at least two (2) days off in between work weeks. Example: M, T, W, T, off, off, S, M, T. 4. Communications Technicians assigned to relief dispatch work schedules shall be compensated for hardship duties by receiving five (5%) percent additional salary while assigned. Packet Page 307 Item 18 Exhibit “A” 83 II. SHIFT SIGN UP: A. The Communications Manager will post the annual shift and leave sign up schedule by September 15th each year for the following year. Communication Technicians sign up for shift selection, selected days off, vacation, compensatory time off (CTO) and holiday time. B. Employees will sign up by seniority for their choice of shifts, payback hours, and leave hours for each of the three annual rotations. Shift selection will be by seniority, including relief shift. C. Employees shall have three days (72 hrs) from the date of receipt of the schedule to make their selection for work shifts, days off and annual vacation accrual. Employees are entitled to sign up for the total of their annual accrual of vacation time utilizing coding “V". 1. Communications Technicians will sign-up for “V” days with the expectation that the center is fully staffed and the relief from that watch is available to cover. Communication Technicians may not sign up for vacation time during the initial sign-up if it will incur overtime. First draft vacation requests shall be approved with mandatory overtime in the event of unit vacancies after the master schedule is completed. D. Once all unit employees have had the opportunity to sign up for their maximum accrual of vacation time, they shall be entitled to again sign up by seniority for all accrued compensatory time off (CTO), holiday hours and previously unselected leave time they will have accumulated by the date requested. Compensatory time off shall be coded “CT O", holiday leave and all other previously unselected leave time shall be coded “H". 1. Second draft CTO, holiday and previously unselected leave time may be granted and overtime considered for unit vacancies. Overtime will be posted to accommodate such leave requests. Should the overtime remain unfilled, the requested leave time shall be cancelled. Packet Page 308 Item 18 Exhibit “A” 84 2. In the event that scheduled CTO time is cancelled, the affected employee shall be paid for the CTO hours scheduled, work the shift and be compensated with overtime as defined in Section 11.3. E. The Communications and Records Manager shall approve leave time by seniority and post same on the electronic schedule by the start of each rotation. F. Employees generally will not be allowed to work more than two consecutive shift assignments without rotation to an alternate shift. The Communications and Records Manager may consider requests to work more than two consecutive rotations for hardship and educational purposes. In no case will a senior employee be adjusted from s hift preference without their consent to mitigate requested hardship or educational requests. 1. Any request for a change or deviation between employees (i.e. shift rotation trade) must be submitted in memo form signed by both affected employees within one week of posting the tentative schedule. Requests will be forwarded through the chain-of-command for a final decision by the Bureau Commander or designee. If approved, affected employees will also trade seniority for selection of days off. For scheduling purposes, the shift change will affect only the two employees involved. Affected employees will receive credit for the shift they signed up for. III. SHIFT REASSIGNMENT CREATED BY UNDER STAFFING: A. If an employee is reassigned to a long-term vacancy and the absent employee returns to duty, both employees shall return to their originally selected shift. B. In the event of a staffing vacancy the reassigned employee who was reassigned shall have the option of returning to their originally selected shift or remaining for the duration of the designated shift once the vacancy is filled. Packet Page 309 Item 18 Exhibit “A” 85 C. In the event an employee is reassigned from a selected shift to a designated shift, the employee may elect to receive work credit for either shift to meet rotation requirements. IV. SHIFT TRADE: A. All requests for shift trades between employees shall be submitted utilizing the Substitute Work Agreement form. Requests will be approved by a Bureau Commander or designee. V. LEAVE TIME CANCELLATION: B. In the event an employee opts to cancel scheduled time off, they will by email notify the Communication and Records Manager. The Communication and Records Manager will by email, notify all unit members of the available cancelled leave time. By seniority, employee ’s junior to the employee canceling leave time may request time off utilizing the cancelled dates. If the cancelled time was priority signup, the department shall grant such time off with the same consideration as originally scheduled as outlined in II . C., as long as the employee has the vacation time and does not exceed their annual allotment. If the cancelled leave time was secondary signup, the overtime consideration articulated in II. D. shall be applied. VI. SHIFT ADJUSTMENTS: A. Shift adjustments on a regular scheduled d ay required to staff Communication Technician vacancies or sick leave will not exceed four (4) hours without the consent of the affected employee. When shift adjustments are required, there shall be a minimum of ten (10) hours between shifts without loss of compensation. B. In any situation necessitating a shift adjustment, volunteers will first be sought. Whenever volunteers cannot be located, employees will be chosen sequentially by seniority. 1. At least fourteen (14) days’ notice will be given on planned leave. Packet Page 310 Item 18 Exhibit “A” 86 2. An employee authorized to shift adjust will not suffer loss of briefing pay or other normal benefit. C. The Communication and Records Manager and/or Supervisors shall notify employees via email of all changes made to their work schedule at the time said change is made. VII. MEAL AND REST PERIODS: A. Meal periods shall consist of not less than thirty (30) minutes paid subject to interruption, as staffing permits. Two fifteen (15) minute rest periods (breaks) shall be provided, as staffing permits. Breaks may be taken using any combination of the total time allowed. Meal and rest periods (breaks) are subject to interruption and must be taken within the building. 39.4 Field Service Technicians assigned primarily to field duties will receive a 30- minute paid lunch break as part of their regular shift as staffing and calls permit. They will remain subject to call and interruption during their lunch period. 39.5 Investigations – Division Work Schedule A. Investigators may participate in a 4/10 work schedule in accordance with the City’s alternate work schedule policy. The schedule will include a 30 minute paid lunch as part of their regular shift as staffing and calls permit. Investigators will remain subject to call and interruption during their lunch period. B. The Investigative Lieutenant will determine the work days and hours for those employees who work the 4/10 schedule based on the coverage needs of the entire unit. The schedule may include shifts beginning at 6:45 a.m. with attendance at patrol briefings. Investigators who attend patrol or other daily briefings shall do so as part of their regular shift hours. Packet Page 311 Item 18 Exhibit “A” 87 39.6 Other division/assignments may be provided alternate work schedules under the following language: Employees may request that the Department Head or his/her designee consider alternate work schedules. Examples of alternate work schedules include 4/10 schedules, 9/80 schedules, 12-hour schedules, flexible schedules, etc. Alternate schedules may provide for paid or unpaid lunch periods of 30, 45 or 60 minutes. Except in cases of emergency, employees will be provided advance notice of at least thirty calendar days prior to having an alternate work schedule discontinued. Such notice does not apply to moving between alternate schedules, temporary schedule changes, flexible schedules, etc. If an alternate schedule is discontinued, the Department will notify the Association of the reason(s) for ending the schedule. Employees on flexible/alternate schedules shall continue to accrue time on the standard eight (8) hour day. Accrued leave shall be charged based on the number of hours missed due to a flexible schedule. Flexible/alternate schedules implemented for non -sworn employee(s) may have a different FLSA seven (7) day work cycle established. Once established, the FLSA work schedule shall not be changed on a frequent or routine basis. Packet Page 312 Item 18 Exhibit “A” 88 ARTICLE 40 - SWAT SWAT team members are required to maintain a higher standard of physical fitness than the normal employee. The City will reimburse each SWAT team member who purchases personal exercise equipment or who voluntarily joins a physical fitness gym for the cost of the membership and monthly charges up to a maximum yearly fiscal year rateamount of $375.00 per member. A purchase that meets the criteria to be eligible for reimbursement and is above the annual reimbursement limit, may be submitted in up to two additional consecutive years. At the City’s request each member requesting reimbursement may be required to provide proof of purchase or of membership and active participation. Packet Page 313 Item 18 Exhibit “A” 89 ARTICLE 41 - TRAUMATIC INCIDENTS Employees involved in a traumatic critical incident as defined by Department Policy, where the employee may be subject to investigation, shall be advised of his/her right to representation. Packet Page 314 Item 18 Exhibit “A” 90 ARTICLE 42 - NO DISCRIMINATION 42.1 There shall be no discrimination by the City of San Luis Obispo in employment conditions or treatment of employees on the basis of race, religion, sex (including gender, gender identity, gender expression, transgender, pregnancy and breastfeeding), national origin, ancestry, disability, medical condition, genetic characteristics or information, marital status, age (40 years and older ), or sexual orientation (including homosexuality, bisexuality, or heterosexuality), military or veteran status, denial of family and medical care leave, race, color, religion, national origin, sex, sexual orientation, age, marital status, physical or ment al disability, association membership or non-membership, or participation in the activities of the Association. 42.2 There shall be no discrimination by the San Luis Obispo Police Officers Association in treatment of employees on the basis of race, religion, sex (including gender, gender identity, gender expression, transgender, pregnancy and breastfeeding), national origin, ancestry, disability, medical condition, genetic characteristics or information, marital status, age (40 years and older), or sexua l orientation (including homosexuality, bisexuality, or heterosexuality), military or veteran status, denial of family and medical care leave, race, color, religion, national origin, sex, sexual orientation, age, marital status, physical or mental disability, aAssociation membership or non-membership, or participation in the activities of the Association. Packet Page 315 Item 18 Exhibit “A” 91 ARTICLE 43 - STAFFING The current number of positions in the Police Department represented by the Association is Forty-Five (45) Police Officers, Eleven (11) Communication Technicians, One (1) Police Field Service Technician, Five (5) Police Records Clerks, One (1) Property and Evidence Clerk, and One (1) Evidence Technician. If it becomes necessary for the City to exercise its management right to change those staffing levels, the City acknowledges its responsibility to meet and confer with the Association on the impacts of any such changes. Packet Page 316 Item 18 Exhibit “A” 92 ARTICLE 44 - FULL AGREEMENT It is understood this Agreement represents a complete and final understanding on all negotiable issues between the City and the Association. This Agreement supersedes all previous Memoranda of Understanding or Memoranda of Agreement between the City and the Association except as specifically referred to in this Agreement. The partie s, for the term of this Agreement, voluntarily and unqualifiedly agree to waive the obligation to meet and confer with respect to any terms and conditions of employment specifically referred to or covered in this Agreement. If, during the term of this Agr eement, the City proposes changes to terms and conditions of employment not covered by this Agreement and/or introduces new terms and conditions of employment that fall within the statutory scope of bargaining, the Association will be afforded written noti ce of such proposed changes and the right to meet and confer upon request prior to implementation of the proposed changes. During the term of this Agreement, upon request from either the City or the Association, and to the extent required by law, the parties shall meet and confer in good faith regarding implementation of the City’s new HRIS System with consideration of possibl e adjustments to language or processes as they relate to payroll and human resources practices. It is understood this Agreement represents a complete and final understanding on all negotiable issues between the City and the Association. This Agreement su persedes all previous Memoranda of Understanding or Memoranda of Agreement between the City and the Association except as specifically referred to in this Agreement. The parties, for the term of this Agreement, voluntarily and unqualifiedly agree to waive the obligation to negotiate with respect to any practice, subject or matter not specifically referred to or covered in this Agreement even though such practice, subject or matter may not have been within the knowledge of the parties at the time this Agree ment was negotiated and signed. In the event any new practice or subject matter arises during the term of this Agreement and an action is proposed by the City, the Association will be afforded notice and shall have the right to meet and confer upon reques t. Packet Page 317 Item 18 Exhibit “A” 93 ARTICLE 45 - SAVINGS CLAUSE If any provision of this Agreement should be held invalid by operation of law or by any court of competent jurisdiction, or if compliance with or enforcement of any provision should be restrained by any tribunal, the remaind er of this Agreement shall not be affected thereby, and the parties shall enter into a meet and confer session for the sole purpose of arriving at a mutually satisfactory replacement for such provision within a 30 day work period. If no agreement has been reached, the parties agree to invoke the provision of impasse under Resolution 6620. Packet Page 318 Item 18 Exhibit “A” 94 ARTICLE 46 - RENEGOTIATIONS If either party wishes to make changes to this Agreement, that party shall serve upon the other its written request to negotiate. Such noti ce and proposals must be submitted to the other party not less than 105 days prior to the end of the Agreement. If notice is properly and timely given, negotiations shall commence no later than 90 days prior to the end of the Agreement. Packet Page 319 Item 18 Exhibit “A” 95 ARTICLE 47 - TERM OF AGREEMENT This Agreement shall become effective January 1, 2016July 1, 2018, and shall continue in full force and effect until expiration at midnight, June 30, 201821. SIGNATURES 1. Classifications covered by this Agreement and included within this unit are shown in Appendix “A”. 2. This Agreement does not apply to temporary supplemental employees. This Agreement was executed by the following parties: CITY OF SAN LUIS OBISPO SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION _________________________________ ________________________________ Richard Bolanos, Chief Negotiator Stuart D. Adams, Chief Negotiator _________________________________ ________________________________ Monica Irons, Human Resources Director Chris Chitty, SLOPOA President Packet Page 320 Item 18 Exhibit “A” 96 APPENDIX A - CLASSIFICATION Non-Sworn Classifications Communications Technician Evidence Technician* Police Field Service Technician* Police Cadet Police Records Clerk I* Police Records Clerk II* Property and Evidence Clerk* * Denotes Non-Shift classifications Sworn Classifications Police Officer Packet Page 321 Item 18 Exhibit “A” 97 APPENDIX B - GRIEVANCE FORMS Packet Page 322 Item 18 Exhibit “A” 98 Packet Page 323 Item 18 Exhibit “A” 99 APPENDIX C – SALARY RANGE LISTING Packet Page 324 Item 18 CITY OF SAN LUIS OBISPO REGULAR AND CONTRACT SALARY SCHEDULEAdopted by Council 10/16/18 Title Class ScheduleBargaining UnitWC CodeExempt/ Non‐ExemptEEO Category EEO Function Biweekly Step 1  Biweekly Step 2  Biweekly Step 3  Biweekly Step 4  Biweekly Step 5  Biweekly Step 6  Biweekly Step 7  Biweekly Step 8  Biweekly Step 9 ACCOUNTANT3020 305 MME 8810 Exempt 2 12,465$       2,465$       2,465$       2,465$       3,081$      ‐$           ‐$           ‐$           ‐$          ACCOUNTING ASSISTANT I4020 417 CEA 8810 Non‐Exempt 6 11,606$       1,690$       1,779$       1,873$       1,972$      ‐$           ‐$           ‐$           ‐$          ACCOUNTING ASSISTANT II4030 419 CEA 8810 Non‐Exempt 6 11,691$       1,780$       1,874$       1,973$       2,077$      ‐$           ‐$           ‐$           ‐$          ACCOUNTING ASSISTANT III4040 421 CEA 8810 Non‐Exempt 6 11,781$       1,875$       1,974$       2,078$       2,187$      ‐$           ‐$           ‐$           ‐$          ACCOUNTING MANAGER3011 347 MME 8810 Exempt 2 13,712$       3,712$       3,712$       3,712$       4,639$      ‐$           ‐$           ‐$           ‐$          ACTING FIRE CHIEF2610 272 DPH 7706 Exempt 1 15,494$       5,494$       5,494$       5,494$       6,870$      ‐$           ‐$           ‐$           ‐$          ACTIVE TRANSPORTATION MANAGER3261 325 MME 8810 Exempt 2 22,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          ADMINISTRATION EXECUTIVE ASSISTANT3520 365 CFE 8810 Non‐Exempt 6 11,971$       2,075$       2,184$      2,299$       2,420$      ‐$           ‐$           ‐$           ‐$          ADMINISTRATIVE ANALYST3029 305 MME 8810 Exempt 2 12,465$       2,465$       2,465$       2,465$       3,081$      ‐$           ‐$           ‐$           ‐$          ADMINISTRATIVE ASSISTANT I4500 417 CEA 8810 Non‐Exempt 6 11,606$       1,690$       1,779$       1,873$       1,972$      ‐$           ‐$           ‐$           ‐$          ADMINISTRATIVE ASSISTANT II4510 419 CEA 8810 Non‐Exempt 6 11,691$       1,780$       1,874$       1,973$       2,077$      ‐$           ‐$           ‐$           ‐$          ADMINISTRATIVE ASSISTANT III4520 423 CEA 8810 Non‐Exempt 6 11,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          APPLICATION SYSTEM SPECIALIST4368 439 CEA‐C 9410 Non‐Exempt 3 12,843$       2,993$       3,150$       3,316$       3,490$      ‐$           ‐$           ‐$           ‐$          ASSISTANT CITY ATTORNEY3050 353 MME 8810 Exempt 2 13,950$       3,950$       3,950$       3,950$       4,936$      ‐$           ‐$           ‐$           ‐$          ASSISTANT CITY MANAGER2510 267 DPH 8810 Exempt 1 15,244$       5,244$       5,244$       5,244$       6,558$      ‐$           ‐$           ‐$           ‐$          ASSISTANT PLANNER4080 432 CEA 8810 Non‐Exempt 5 102,371$       2,496$       2,627$       2,765$       2,910$      ‐$           ‐$           ‐$           ‐$          ASSISTANT TO THE CITY MANAGER3031 335 MME 8810 Exempt 2 13,304$       3,304$       3,304$       3,304$       4,128$      ‐$           ‐$           ‐$           ‐$          ASSOCIATE PLANNER4090 437 CEA 8810 Non‐Exempt 2 102,699$       2,841$       2,991$       3,148$      3,314$      ‐$           ‐$           ‐$           ‐$          BUDGET MANAGER3025 330 MME 8810 Exempt 2 13,146$       3,146$       3,146$       3,146$       3,931$      ‐$           ‐$           ‐$           ‐$          BUILDING AND SAFETY SUPERVISOR3075 325 MME 9410 Exempt 2 102,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          BUILDING INSPECTOR I4100 432 CEA 9410 Non‐Exempt 3 102,371$       2,496$       2,627$       2,765$       2,910$      ‐$           ‐$           ‐$           ‐$          BUILDING INSPECTOR II4113 435 CEA 9410 Non‐Exempt 3 102,563$       2,698$       2,840$       2,989$       3,146$      ‐$           ‐$           ‐$           ‐$          BUSINESS ANALYST3026 315 MME‐C 8810 Exempt 2 12,719$       2,719$       2,719$       2,719$       3,396$      ‐$           ‐$           ‐$           ‐$          CHIEF BUILDING OFFICIAL2537 244 MME 9410 Exempt 2 104,227$       4,227$       4,227$       4,227$       5,281$      ‐$           ‐$           ‐$           ‐$          CITY ATTORNEY2020 210 APO 8810 Exempt 2 17,569$      ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$          CITY BIOLOGIST3570 325 MME 9410 Exempt 2 62,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          CITY CLERK3035 340 MME 8810 Exempt 2 13,468$       3,468$       3,468$       3,468$       4,335$      ‐$           ‐$           ‐$           ‐$          CITY COUNCIL MEMBER1030 104 CCM 8810 Exempt 1 1554$           ‐$           ‐$           ‐$           ‐$          ‐$           ‐$           ‐$           ‐$          CITY MANAGER2010 220 APO 8810 Exempt 1 18,953$      ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$          CLASSIFICATION AND COMPENSATION SPECIALIST3553 368 CFE‐C 8810 Non‐Exempt 5 12,040$       2,147$       2,260$       2,379$       2,504$      ‐$           ‐$           ‐$           ‐$          CODE ENFORCEMENT OFFICER I4114 432 CEA 9410 Non‐Exempt 3 102,371$       2,496$       2,627$       2,765$       2,910$      ‐$           ‐$           ‐$           ‐$          CODE ENFORCEMENT OFFIECR II4116 435 CEA 9410 Non‐Exempt 3 102,563$       2,698$       2,840$       2,989$       3,146$      ‐$           ‐$           ‐$           ‐$          CODE ENFORCEMENT SUPERVISOR3076 320 MME 9410 Exempt 2 102,853$       2,853$       2,853$       2,853$       3,566$      ‐$           ‐$           ‐$           ‐$          CODE ENFORCEMENT TECHNICIAN I4117 421 CEA 9410 Non‐Exempt 3 101,781$       1,875$       1,974$       2,078$       2,187$      ‐$           ‐$           ‐$           ‐$          CODE ENFORCEMENT TECHNICIAN II4118 423 CEA 9410 Non‐Exempt 3 101,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          COMMUNCATIONS TECHNICIAN7010 712 POA 8810 Non‐Exempt 6 42,256$       2,375$       2,500$       2,632$       2,771$       2,917$      3,070$      ‐$           ‐$          COMMUNICATIONS MANAGER8056 856 PSO 8810 Exempt 2 43,290$       3,463$       3,645$       3,837$       4,039$       4,252$     ‐$           ‐$           ‐$          Page 1 of 6Packet Page 325Item 18 CITY OF SAN LUIS OBISPO REGULAR AND CONTRACT SALARY SCHEDULEAdopted by Council 10/16/18 Title Class ScheduleBargaining UnitWC CodeExempt/ Non‐ExemptEEO Category EEO Function Biweekly Step 1  Biweekly Step 2  Biweekly Step 3  Biweekly Step 4  Biweekly Step 5  Biweekly Step 6  Biweekly Step 7  Biweekly Step 8  Biweekly Step 9 COMMUNICATIONS SUPERVISOR8050 855 PSO 8810 Exempt 2 42,835$       2,984$       3,141$       3,306$       3,480$       3,663$     ‐$           ‐$           ‐$          CONSTRUCTION ENGINEERING MANAGER3099 340 MME 9410 Exempt 2 23,468$       3,468$       3,468$       3,468$       4,335$      ‐$           ‐$           ‐$           ‐$          CONTROL SYSTEMS ADMINISTRATOR4364 439 CEA 9420 Non‐Exempt 3 122,843$       2,993$       3,150$       3,316$       3,490$      ‐$           ‐$           ‐$           ‐$          CONTROL SYSTEMS TECHNICIAN4363 435 CEA 9420 Non‐Exempt 3 122,563$       2,698$       2,840$       2,989$       3,146$      ‐$           ‐$           ‐$           ‐$          DATABASE ADMINISTRATOR4367 439 CEA 8810 Non‐Exempt 3 12,843$       2,993$       3,150$       3,316$       3,490$      ‐$           ‐$           ‐$           ‐$          DEPUTY CITY CLERK I4536 423 CEA 8810 Non‐Exempt 5 11,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          DEPUTY CITY CLERK II4537 426 CEA 8810 Non‐Exempt 5 12,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          DEPUTY DIRECTOR OF CDD ‐ DEVELOPMENT REVIEW2544 244 MME 8810 Exempt 1 104,227$       4,227$       4,227$       4,227$       5,281$      ‐$           ‐$           ‐$           ‐$          DEPUTY DIRECTOR OF CDD ‐ LONG RANGE PLANNING2545 244 MME 8810 Exempt 1 104,227$       4,227$       4,227$       4,227$       5,281$      ‐$           ‐$           ‐$           ‐$          DEPUTY DIRECTOR OF PUBLIC WORKS2565 244 MME 9410 Exempt 1 14,227$       4,227$       4,227$       4,227$       5,281$      ‐$           ‐$           ‐$           ‐$          DEPUTY DIRECTOR OF PUBLIC WORKS/CITY ENGINEER2555 249 MME 8810 Exempt 1 24,438$       4,438$       4,438$       4,438$       5,547$      ‐$           ‐$           ‐$           ‐$          DEPUTY DIRECTOR OF UTILITIES ‐ WASTEWATER2575 244 MME 9410 Exempt 1 134,227$       4,227$       4,227$       4,227$       5,281$      ‐$           ‐$           ‐$           ‐$          DEPUTY DIRECTOR OF UTILITIES ‐ WATER2574 244 MME 9410 Exempt 1 124,227$       4,227$       4,227$       4,227$       5,281$      ‐$           ‐$           ‐$           ‐$          DEPUTY FIRE CHIEF2615 257 MME 7706 Exempt 1 54,781$       4,781$       4,781$       4,781$       5,976$      ‐$           ‐$           ‐$           ‐$          DIRECTOR OF COMMUNITY DEVELOPMENT2550 267 DPH 8810 Exempt 1 15,244$       5,244$       5,244$       5,244$       6,558$      ‐$           ‐$           ‐$           ‐$          DIRECTOR OF FINANCE2533 267 DPH 8810 Exempt 1 15,244$       5,244$       5,244$       5,244$       6,558$      ‐$           ‐$           ‐$           ‐$          DIRECTOR OF HUMAN RESOURCES2540 267 DPH 8810 Exempt 1 15,244$       5,244$       5,244$       5,244$       6,558$      ‐$           ‐$           ‐$           ‐$          DIRECTOR OF PARKS AND RECREATION2590 267 DPH 8810 Exempt 1 15,244$       5,244$       5,244$       5,244$       6,558$      ‐$           ‐$           ‐$           ‐$          DIRECTOR OF PUBLIC WORKS2560 267 DPH 8810 Exempt 1 15,244$       5,244$       5,244$       5,244$       6,558$      ‐$           ‐$           ‐$           ‐$          DIRECTOR OF UTILITIES2580 267 DPH 8810 Exempt 1 15,244$       5,244$       5,244$       5,244$       6,558$      ‐$           ‐$           ‐$          ‐$          ECONOMIC DEVELOPMENT MANAGER3120 340 MME 9410 Exempt 2 13,468$       3,468$       3,468$       3,468$       4,335$      ‐$           ‐$           ‐$           ‐$          ENGINEER I4160 435 CEA 9410 Non‐Exempt 2 22,563$       2,698$       2,840$       2,989$       3,146$      ‐$           ‐$           ‐$           ‐$          ENGINEER II4161 439 CEA 9410 Non‐Exempt 2 22,843$       2,993$       3,150$       3,316$       3,490$      ‐$           ‐$           ‐$           ‐$          ENGINEER III4162 442 CEA 9410 Non‐Exempt 2 23,073$       3,235$       3,405$       3,584$       3,773$      ‐$           ‐$           ‐$           ‐$          ENGINEERING INSPECTOR I4151 430 CEA 9410 Non‐Exempt 3 22,251$       2,369$       2,494$       2,625$       2,763$      ‐$           ‐$           ‐$           ‐$          ENGINEERING INSPECTOR II4152 433 CEA 9410 Non‐Exempt 3 22,433$       2,561$       2,696$       2,838$       2,987$      ‐$           ‐$           ‐$           ‐$          ENGINEERING INSPECTOR III4153 439 CEA 9410 Non‐Exempt 3 22,843$       2,993$       3,150$       3,316$       3,490$      ‐$           ‐$           ‐$           ‐$          ENGINEERING INSPECTOR IV4154 442 CEA 9410 Non‐Exempt 3 23,073$       3,235$       3,405$       3,584$       3,773$      ‐$           ‐$           ‐$           ‐$          ENGINEERING TECHNICIAN I4170 423 CEA 8810 Non‐Exempt 3 21,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          ENGINEERING TECHNICIAN II4171 425 CEA 8810 Non‐Exempt 3 21,978$       2,082$       2,192$       2,307$       2,428$      ‐$           ‐$           ‐$           ‐$          ENGINEERING TECHNICIAN III4172 430 CEA 8810 Non‐Exempt 3 22,251$       2,369$       2,494$       2,625$       2,763$      ‐$           ‐$           ‐$           ‐$          ENVIRONMENTAL COMPLIANCE INSPECTOR4220 432 CEA 9410 Non‐Exempt 3 122,371$       2,496$       2,627$       2,765$       2,910$      ‐$           ‐$           ‐$           ‐$          ENVIRONMENTAL PROGRAMS MANAGER3171 325 MME 9410 Exempt 3 132,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          EVIDENCE TECHNICIAN7020 715 POA 9410 Non‐Exempt 3 43,012$       3,171$       3,338$       3,514$       3,699$       3,894$      4,099$      ‐$           ‐$          FACILITIES MAINTENANCE SUPERVISOR3070 315 MME 9420 Exempt 3 22,719$       2,719$       2,719$       2,719$       3,396$      ‐$           ‐$           ‐$           ‐$          FACILITIES MAINTENANCE TECHNICIAN (SBP)4305 450 CEA 9420 Non‐Exempt8 21,789$       1,883$       1,982$       2,086$       2,196$       2,312$      2,434$       2,562$       2,697$      FIRE BATTALION CHIEF5010 505 FBC 7706 Exempt 1 54,297$       4,523$       4,761$       5,012$       5,276$       5,554$     ‐$           ‐$           ‐$          Page 2 of 6Packet Page 326Item 18 CITY OF SAN LUIS OBISPO REGULAR AND CONTRACT SALARY SCHEDULEAdopted by Council 10/16/18 Title Class ScheduleBargaining UnitWC CodeExempt/ Non‐ExemptEEO Category EEO Function Biweekly Step 1  Biweekly Step 2  Biweekly Step 3  Biweekly Step 4  Biweekly Step 5  Biweekly Step 6  Biweekly Step 7  Biweekly Step 8  Biweekly Step 9 FIRE CAPTAIN6010 621 FFA 7706 Non‐Exempt 2 53,353$       3,529$       3,715$       3,910$       4,116$      ‐$           ‐$           ‐$           ‐$          FIRE CHIEF2610 272 DPH 7706 Exempt 1 15,494$       5,494$       5,494$       5,494$       6,870$      ‐$           ‐$           ‐$           ‐$          FIRE ENGINEER6020 615 FFA 7706 Non‐Exempt 3 52,869$       3,020$       3,179$       3,346$       3,522$      ‐$           ‐$           ‐$           ‐$          FIRE FIGHTER6040 612 FFA 7706 Non‐Exempt 4 52,384$       2,649$       2,788$       2,935$       3,089$       3,252$     ‐$           ‐$           ‐$          FIRE INSPECTOR I6198 626 FFA 9410 Non‐Exempt 3 52,410$       2,537$       2,670$       2,811$       2,959$      ‐$           ‐$           ‐$           ‐$          FIRE INSPECTOR II6200 630 FFA 9410 Non‐Exempt 3 52,674$       2,815$       2,963$       3,119$       3,283$      ‐$           ‐$           ‐$           ‐$          FIRE INSPECTOR III6202 633 FFA 9410 Non‐Exempt 3 52,890$       3,042$       3,202$       3,371$       3,548$      ‐$           ‐$           ‐$           ‐$          FIRE MARSHAL3130 347 MME 9410 Exempt 1 13,712$       3,712$       3,712$       3,712$       4,639$      ‐$           ‐$           ‐$           ‐$          FIRE VEHICLE MECHANIC6030 616 FFA 9420 Non‐Exempt 7 52,940$       3,095$       3,258$       3,429$       3,609$      ‐$           ‐$           ‐$           ‐$          FLEET MAINTENANCE SUPERVISOR3350 315 MME 9420 Exempt 3 122,719$       2,719$       2,719$       2,719$       3,396$      ‐$           ‐$           ‐$           ‐$          GIS SPECIALIST I4177 433 CEA 8810 Non‐Exempt 3 22,433$       2,561$      2,696$       2,838$       2,987$      ‐$           ‐$           ‐$           ‐$          GIS SPECIALIST II4178 437 CEA 8810 Non‐Exempt 3 22,699$       2,841$       2,991$       3,148$       3,314$      ‐$           ‐$           ‐$           ‐$          GOLF MAINTENANCE CREW COORDINATOR3161 426 CEA 9420 Non‐Exempt 8 62,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          HAZARDOUS MATERIALS COORDINATOR6165 617 FFA 9420 Non‐Exempt 3 53,456$       3,638$       3,829$       4,031$       4,243$      ‐$           ‐$           ‐$           ‐$          HEAVY EQUIPMENT MECHANIC4250 426 CEA 9420 Non‐Exempt 7 22,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          HOUSING PROGRAMS MANAGER3168 320 MME 8810 Exempt 2 102,853$       2,853$       2,853$       2,853$       3,566$      ‐$           ‐$           ‐$           ‐$          HUMAN RESOURCES ADMINISTRATIVE ASSISTANT I3532 360 CFE 8810 Non‐Exempt 6 11,654$       1,741$       1,833$       1,929$       2,031$      ‐$           ‐$           ‐$           ‐$          HUMAN RESOURCES ADMINISTRATIVE ASSISTANT II3534 363 CFE 8810 Non‐Exempt 6 11,741$       1,833$       1,929$       2,030$       2,137$      ‐$           ‐$           ‐$           ‐$          HUMAN RESOURCES ADMINISTRATIVE ASSISTANT III3536 365 CFE 8810 Non‐Exempt 6 11,971$       2,075$       2,184$       2,299$       2,420$      ‐$           ‐$           ‐$           ‐$          HUMAN RESOURCES ANALYST I3240 305 MME 8810 Exempt 2 12,465$       2,465$       2,465$       2,465$       3,081$      ‐$           ‐$           ‐$           ‐$          HUMAN RESOURCES ANALYST II3245 315 MME 8810 Exempt 2 12,719$       2,719$       2,719$       2,719$       3,396$      ‐$           ‐$           ‐$           ‐$          HUMAN RESOURCES MANAGER3320 325 MME 8810 Exempt 2 12,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          HUMAN RESOURCES SPECIALIST3552 368 CFE 8810 Non‐Exempt 5 12,040$       2,147$       2,260$       2,379$       2,504$      ‐$           ‐$           ‐$           ‐$          INFORMATION TECHNOLOGY ASSISTANT4255 423 CEA 8810 Non‐Exempt 3 11,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          INFORMATION TECHNOLOGY MANAGER3180 353 MME 8810 Exempt 2 13,950$       3,950$       3,950$       3,950$       4,936$      ‐$           ‐$           ‐$           ‐$          INFORMATION TECHNOLOGY SUPERVISOR3145 325 MME 8810 Exempt 2 22,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          INFORMATION TECHNOLOGY SUPPORT SERVICES SUPERVISOR3179 305 MME 8810 Exempt 2 12,465$       2,465$       2,465$       2,465$       3,081$      ‐$           ‐$           ‐$           ‐$          INTERIM DEPUTY CITY MANAGER3034 244 MME 8810 Exempt 1 14,227$       4,227$       4,227$       4,227$       5,281$      ‐$           ‐$           ‐$           ‐$          INTERIM DEPUTY DIRECTOR ‐ SUSTAINABILITY3201 244 MME 8810 Exempt 2 64,227$       4,227$       4,227$       4,227$       5,281$      ‐$           ‐$           ‐$           ‐$          INTERIM INFORMATION TECHNOLOGY SUPERVISOR3181 335 MME 8810 Exempt 2 13,304$       3,304$       3,304$       3,304$       4,128$      ‐$           ‐$          ‐$           ‐$          LABORATORY ANALYST (SBP)4775 456 CEA 9410 Non‐Exempt 3 132,290$       2,411$       2,538$       2,672$       2,813$       2,961$      3,117$       3,281$       3,454$      LABORATORY MANAGER3185 330 MME 9410 Exempt 3 123,146$       3,146$       3,146$       3,146$       3,931$      ‐$           ‐$           ‐$           ‐$          LEAD NETWORK ADMINISTRATOR4369 441 CEA 8810 Non‐Exempt 3 12,993$       3,151$       3,317$       3,492$       3,676$      ‐$           ‐$           ‐$           ‐$          LEGAL ASSISTANT3541 363 CFE 8810 Non‐Exempt 6 11,741$       1,833$       1,929$       2,030$       2,137$      ‐$           ‐$           ‐$           ‐$          LEGAL ASSISTANT/PARALEGAL3542 369 CFE 8810 Non‐Exempt 6 12,151$       2,264$       2,383$       2,508$       2,640$      ‐$           ‐$           ‐$           ‐$          MAINTENANCE WORKER I4290 417 CEA 9420 Non‐Exempt 8 21,606$       1,690$       1,779$       1,873$       1,972$      ‐$           ‐$           ‐$           ‐$          MAINTENANCE WORKER II ‐ PARKS4320 419 CEA 9420 Non‐Exempt 8 21,691$       1,780$       1,874$       1,973$       2,077$      ‐$           ‐$           ‐$           ‐$          Page 3 of 6Packet Page 327Item 18 CITY OF SAN LUIS OBISPO REGULAR AND CONTRACT SALARY SCHEDULEAdopted by Council 10/16/18 Title Class ScheduleBargaining UnitWC CodeExempt/ Non‐ExemptEEO Category EEO Function Biweekly Step 1  Biweekly Step 2  Biweekly Step 3  Biweekly Step 4  Biweekly Step 5  Biweekly Step 6  Biweekly Step 7  Biweekly Step 8  Biweekly Step 9 MAINTENANCE WORKER III ‐ PARKS4330 421 CEA 9420 Non‐Exempt 8 21,781$       1,875$       1,974$       2,078$       2,187$      ‐$           ‐$           ‐$           ‐$          MANAGEMENT FELLOW3000 300 CFE‐C 8810 Non‐Exempt 5 11,924$       2,025$       2,132$       2,244$       2,362$      MAYOR1010 110 CCM 8810 Exempt 1 1693$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$          MECHANIC HELPER4251 417 CEA 7706 Non‐Exempt 7 51,606$       1,690$       1,779$       1,873$       1,972$      ‐$           ‐$           ‐$           ‐$          NATURAL RESOURCES MANAGER3200 340 MME 8810 Exempt 2 63,468$       3,468$       3,468$       3,468$       4,335$      ‐$           ‐$           ‐$           ‐$          NEIGHBORHOOD OUTREACH MANAGER3210 320 MME 8810 Exempt 2 12,853$       2,853$       2,853$       2,853$       3,566$      ‐$           ‐$           ‐$           ‐$          NETWORK ADMINISTRATOR4366 439 CEA 8810 Non‐Exempt 3 12,843$       2,993$       3,150$       3,316$       3,490$      ‐$           ‐$           ‐$           ‐$          NETWORK SERVICES SUPERVISOR3155 330 MME 8810 Exempt 2 13,146$       3,146$       3,146$       3,146$       3,931$      ‐$           ‐$           ‐$           ‐$          NETWORK TECHNICIAN4256 425 CEA 8810 Non‐Exempt 3 11,978$       2,082$       2,192$       2,307$       2,428$      ‐$           ‐$           ‐$           ‐$          PARKING COORDINATOR4380 426 CEA 9420 Non‐Exempt 5 22,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          PARKING ENFORCEMENT OFFICER I4390 420 CEA 9420 Non‐Exempt 3 21,736$       1,827$       1,923$       2,024$       2,131$      ‐$          ‐$           ‐$           ‐$          PARKING ENFORCEMENT OFFICER II4391 423 CEA 9420 Non‐Exempt 3 21,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          PARKING METER REPAIR WORKER4370 421 CEA 9420 Non‐Exempt 7 21,781$       1,875$       1,974$       2,078$       2,187$      ‐$           ‐$           ‐$           ‐$          PARKING SERVICES MANAGER3220 330 MME 9410 Exempt 2 23,146$       3,146$       3,146$       3,146$       3,931$      ‐$           ‐$           ‐$           ‐$          PARKING SERVICES SUPERVISOR3225 305 MME 9410 Exempt 2 22,465$       2,465$       2,465$       2,465$       3,081$      ‐$           ‐$           ‐$           ‐$          PARKS CREW COORDINATOR4340 451 CEA 9420 Non‐Exempt 8 22,196$       2,312$       2,434$       2,562$       2,697$      ‐$           ‐$           ‐$           ‐$          PARKS MAINTENANCE SPECIALIST (SBP)4339 446 CEA 9420 Non‐Exempt 8 21,610$       1,695$       1,784$       1,878$       1,977$       2,081$      2,190$       2,305$       2,426$      PARKS MAINTENANCE SUPERVISOR3040 315 MME 9420 Exempt 3 22,719$       2,719$       2,719$       2,719$       3,396$      ‐$           ‐$           ‐$           ‐$          PERMIT SERVICES COORDINATOR3115 305 MME 8810 Exempt 2 102,465$       2,465$       2,465$       2,465$       3,081$      ‐$           ‐$           ‐$           ‐$          PERMIT TECHNICIAN I4105 419 CEA 8810 Non‐Exempt 5 101,691$       1,780$       1,874$       1,973$       2,077$      ‐$           ‐$           ‐$           ‐$          PERMIT TECHNICIAN II4106 423 CEA 8810 Non‐Exempt 7 11,876$       1,975$       2,079$       2,188$       2,303$      ‐$          ‐$           ‐$           ‐$          PLANNING TECHNICIAN4070 423 CEA 8810 Non‐Exempt 5 101,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          PLANS EXAMINER4115 437 CEA 8810 Non‐Exempt 3 102,699$       2,841$       2,991$       3,148$       3,314$      ‐$           ‐$           ‐$           ‐$          POLICE CADET7030 706 POA 7720 Non‐Exempt 4 42,085$       2,195$       2,311$       2,433$       2,561$       2,696$      2,838$      ‐$           ‐$          POLICE CAPTAIN8040 810 PSO 7720 Exempt 1 45,075$       5,342$       5,623$       5,919$       6,230$       6,558$     ‐$           ‐$           ‐$          POLICE CHIEF2600 279 DPH 9410 Exempt 1 16,266$       6,266$       6,266$       6,266$       7,832$      ‐$           ‐$           ‐$           ‐$          POLICE FIELD SERVICES TECHNICIAN7040 709 POA 9410 Non‐Exempt 3 42,202$       2,318$       2,440$       2,568$       2,703$       2,845$      2,995$      ‐$           ‐$          POLICE LIEUTENANT8030 805 PSO 7720 Exempt 2 44,412$       4,644$       4,888$       5,145$       5,416$       5,701$     ‐$           ‐$           ‐$          POLICE OFFICER7510 720 POA 7720 Non‐Exempt 4 42,722$       2,865$       3,016$       3,175$       3,342$       3,518$      3,703$       3,898$       4,103$      POLICE RECORDS CLERK I7050 700 POA 8810 Non‐Exempt 6 41,693$       1,782$       1,876$       1,975$       2,079$       2,188$      2,303$      ‐$           ‐$          POLICE RECORDS CLERK II7060 703 POA 8810 Non‐Exempt 6 41,876$       1,975$       2,079$       2,188$       2,303$       2,424$      2,552$      ‐$           ‐$          POLICE RECORDS SUPERVISOR8045 850 PSO 8810 Exempt 2 42,557$       2,692$       2,834$       2,983$       3,140$       3,305$     ‐$           ‐$           ‐$          POLICE SERGEANT8010 800 PSO 7720 Non‐Exempt 3 43,835$       4,037$       4,249$       4,473$       4,708$       4,956$     ‐$           ‐$           ‐$          PRINCIPAL PLANNER3341 340 MME 8810 Exempt 2 103,468$       3,468$       3,468$       3,468$       4,335$      ‐$           ‐$           ‐$           ‐$          PROPERTY AND EVIDENCE CLERK7043 709 POA 8810 Non‐Exempt 3 42,202$       2,318$       2,440$       2,568$       2,703$       2,845$      2,995$      ‐$           ‐$          PURCHASING ANALYST3021 305 MME 8810 Exempt 2 12,465$       2,465$       2,465$       2,465$       3,081$      ‐$           ‐$           ‐$           ‐$          RANGER MAINTENINANCE WORKER4335 419 CEA 9420 Non‐Exempt 8 61,691$       1,780$       1,874$       1,973$       2,077$      ‐$           ‐$           ‐$           ‐$          Page 4 of 6Packet Page 328Item 18 CITY OF SAN LUIS OBISPO REGULAR AND CONTRACT SALARY SCHEDULEAdopted by Council 10/16/18 Title Class ScheduleBargaining UnitWC CodeExempt/ Non‐ExemptEEO Category EEO Function Biweekly Step 1  Biweekly Step 2  Biweekly Step 3  Biweekly Step 4  Biweekly Step 5  Biweekly Step 6  Biweekly Step 7  Biweekly Step 8  Biweekly Step 9 RECREATION COORDINATOR4460 426 CEA 9420 Non‐Exempt 5 62,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          RECREATION MANAGER3290 320 MME 8810 Exempt 2 62,853$       2,853$       2,853$       2,853$       3,566$      ‐$           ‐$           ‐$           ‐$          RECREATION SUPERVISOR3300 305 MME VARIES Exempt 2 62,465$       2,465$       2,465$       2,465$       3,081$      ‐$           ‐$           ‐$           ‐$          SAFETY AND TECHNICAL TRAINING ENGINEER3405 320 MME 9410 Exempt 2 22,853$       2,853$       2,853$       2,853$       3,566$      ‐$           ‐$           ‐$           ‐$          SENIOR ACCOUNTANT3100 315 MME 8810 Exempt 2 12,719$       2,719$       2,719$       2,719$       3,396$      ‐$           ‐$           ‐$           ‐$          SENIOR ADMINISTRATIVE ANALYST3030 315 MME 8810 Exempt 2 12,719$       2,719$       2,719$       2,719$       3,396$      ‐$           ‐$           ‐$           ‐$          SENIOR CIVIL ENGINEER3335 330 MME 9410 Exempt 2 23,146$       3,146$       3,146$       3,146$       3,931$      ‐$           ‐$           ‐$           ‐$          SENIOR PLANNER3326 320 MME 8810 Exempt 2 102,853$       2,853$       2,853$       2,853$       3,566$      ‐$           ‐$           ‐$           ‐$          SIGNAL AND STREETLIGHT TECHNICIAN4540 430 CEA 9420 Non‐Exempt 3 22,251$       2,369$       2,494$       2,625$       2,763$      ‐$           ‐$           ‐$           ‐$          STREET SUPERVISOR3331 315 MME 9420 Exempt 3 22,719$       2,719$       2,719$       2,719$       3,396$      ‐$           ‐$           ‐$           ‐$          STREETS CREW COORDINATOR4365 451 CEA 9420 Non‐Exempt 7 22,196$       2,312$       2,434$       2,562$       2,697$      ‐$           ‐$           ‐$           ‐$          STREETS MAINTENANCE OPERATOR (SBP)4360 446 CEA 9420 Non‐Exempt 8 21,610$       1,695$       1,784$       1,878$       1,977$       2,081$      2,190$       2,305$       2,426$      SUPERVISING ACCOUNTING ASSISTANT4525 426 CEA 8810 Non‐Exempt 6 12,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          SUPERVISING ADMINISTRATIVE ASSISTANT4530 426 CEA 8810 Non‐Exempt 6 12,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          SUPERVISING CIVIL ENGINEER3340 340 MME 9410 Exempt 2 23,468$       3,468$       3,468$       3,468$       4,335$      ‐$           ‐$           ‐$           ‐$          SUPERVISING UTILITY BILLING ASSISTANT4526 426 CEA 8810 Non‐Exempt 6 12,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          SUSTAINABILITY MANAGER3442 325 MME 8810 Exempt 2 12,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          SWEEPER OPERATOR4230 422 CEA 9420 Non‐Exempt 8 21,828$       1,924$       2,025$       2,132$       2,244$      ‐$           ‐$           ‐$           ‐$          SYSTEMS INTEGRATION ADMINISTRATOR4369 439 CEA 8810 Non‐Exempt 3 12,843$       2,993$       3,150$       3,316$       3,490$      ‐$           ‐$           ‐$           ‐$          TECHNOLOGY PROJECT MANAGER3441 325 MME‐C 8810 Exempt 2 12,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$          ‐$           ‐$          TOURISM COORDINATOR4033 426 CEA 8810 Non‐Exempt 5 12,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          TOURISM MANAGER3033 320 MME 8810 Exempt 2 12,853$       2,853$       2,853$       2,853$       3,566$      ‐$           ‐$           ‐$           ‐$          TRANSIT ASSISTANT4143 423 CEA 8810 Non‐Exempt 6 21,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          TRANSIT COORDINATOR4145 426 CEA 9410 Non‐Exempt 6 22,029$       2,136$       2,248$       2,366$       2,491$      ‐$           ‐$           ‐$           ‐$          TRANSIT MANAGER3360 330 MME 9410 Exempt 2 23,146$       3,146$       3,146$       3,146$       3,931$      ‐$           ‐$           ‐$           ‐$          TRANSPORTATION ASSISTANT4140 423 CEA 9410 Non‐Exempt 6 21,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          TRANSPORTATION MANAGER3262 340 MME 9410 Exempt 2 23,468$       3,468$       3,468$       3,468$       4,335$      ‐$           ‐$           ‐$           ‐$          TRANSPORTATION PLANNER‐ENGINEER I4163 435 CEA 9410 Non‐Exempt 2 22,563$       2,698$       2,840$       2,989$       3,146$      ‐$           ‐$           ‐$           ‐$          TRANSPORTATION PLANNER‐ENGINEER II4164 439 CEA 9410 Non‐Exempt 2 22,843$       2,993$       3,150$       3,316$       3,490$      ‐$           ‐$           ‐$           ‐$          TRANSPORTATION PLANNER‐ENGINEER III4165 442 CEA 9410 Non‐Exempt 2 23,073$       3,235$       3,405$       3,584$       3,773$      ‐$           ‐$           ‐$           ‐$          UNDERGROUND UTITIES LOCATOR4575 423 CEA 9420 Non‐Exempt 7 121,876$       1,975$       2,079$       2,188$       2,303$      ‐$           ‐$           ‐$           ‐$          URBAN FOREST SUPERVISOR/CITY ARBORIST3045 315 MME 9420 Exempt 3 22,719$       2,719$       2,719$       2,719$       3,396$      ‐$           ‐$           ‐$           ‐$          URBAN FORESTER (SBP)4570 450 CEA 9420 Non‐Exempt 8 21,789$       1,883$       1,982$       2,086$       2,196$       2,312$      2,434$       2,562$       2,697$      UTILITIES BUSINESS MANAGER3175 330 MME 8810 Exempt 2 123,146$       3,146$       3,146$       3,146$       3,931$      ‐$           ‐$           ‐$           ‐$          UTILITIES ENGINEER3380 330 MME 9410 Exempt 2 23,146$       3,146$       3,146$       3,146$       3,931$      ‐$           ‐$           ‐$           ‐$          UTILITIES PROJECTS MANAGER3400 330 MME 9410 Exempt 2 123,146$       3,146$       3,146$       3,146$       3,931$      ‐$           ‐$           ‐$           ‐$          UTILITY BILLING ASSISTANT4021 419 CEA 8810 Non‐Exempt 6 11,691$       1,780$       1,874$       1,973$       2,077$      ‐$           ‐$           ‐$           ‐$          Page 5 of 6Packet Page 329Item 18 CITY OF SAN LUIS OBISPO REGULAR AND CONTRACT SALARY SCHEDULEAdopted by Council 10/16/18 Title Class ScheduleBargaining UnitWC CodeExempt/ Non‐ExemptEEO Category EEO Function Biweekly Step 1  Biweekly Step 2  Biweekly Step 3  Biweekly Step 4  Biweekly Step 5  Biweekly Step 6  Biweekly Step 7  Biweekly Step 8  Biweekly Step 9 WASTEWATER COLLECTION SYSTEM OPERATOR (SBP)4771 452 CEA 9420 Non‐Exempt 7 132,010$       2,116$       2,227$       2,344$       2,467$       2,597$      2,734$       2,878$       3,029$      WASTEWATER COLLECTION SYSTEM SUPERVISOR3420 325 MME 9420 Exempt 7 122,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          WATER DISTRIBUTION CHIEF OPERATOR4179 437 CEA 9420 Non‐Exempt 7 122,699$       2,841$       2,991$       3,148$       3,314$      ‐$           ‐$           ‐$           ‐$          WATER DISTRIBUTION SUPERVISOR3430 325 MME 9420 Exempt 3 122,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          WATER DISTRIBUTION SYSTEM OPTERATOR (SBP)4773 452 CEA 9420 Non‐Exempt 7 122,010$       2,116$       2,227$       2,344$       2,467$       2,597$      2,734$       2,878$       3,029$      WATER RESOURCE PROGRAM MANAGER3372 320 MME 9410 Exempt 2 122,853$       2,853$       2,853$       2,853$       3,566$      ‐$           ‐$           ‐$           ‐$          WATER RESOURCE RECOVERY FACILITY CHIEF MAINTENANCE TECHNICIAN 4685 444 CEA 9420 Non‐Exempt 7 132,879$       3,031$       3,190$       3,358$       3,535$      ‐$           ‐$           ‐$           ‐$          WATER RESOURCE RECOVERY FACILITY CHIEF OPERATOR4795 445 CEA 9420 Non‐Exempt 7 133,033$       3,193$       3,361$       3,538$       3,724$      ‐$           ‐$           ‐$           ‐$          WATER RESOURCE RECOVERY FACILITY MAINTENANCE TECHNICIAN (SBP) 4777 456 CEA 9420 Non‐Exempt 7 132,290$       2,411$       2,538$       2,672$       2,813$       2,961$      3,117$       3,281$       3,454$      WATER RESOURCE RECOVERY FACILITY OPERATOR (SBP)4778 456 CEA 9420 Non‐Exempt 7 132,290$       2,411$       2,538$       2,672$      2,813$       2,961$      3,117$       3,281$       3,454$      WATER RESOURCE RECOVERY FACILITY PLANT SUPERVISOR3410 335 MME 9420 Exempt 3 133,304$       3,304$       3,304$       3,304$       4,128$      ‐$           ‐$           ‐$           ‐$          WATER RESOURCES TECHNICIAN4580 430 CEA 9420 Non‐Exempt 3 122,251$       2,369$       2,494$       2,625$       2,763$      ‐$           ‐$           ‐$           ‐$          WATER SUPPLY OPERATOR (SBP)4774 452 CEA 9420 Non‐Exempt 7 122,010$       2,116$       2,227$       2,344$       2,467$       2,597$      2,734$       2,878$       3,029$      WATER TREATMENT PLAN CHIEF OPERATOR4790 445 CEA 9420 Non‐Exempt 7 123,033$       3,193$       3,361$       3,538$       3,724$      ‐$           ‐$           ‐$           ‐$          WATER TREATMENT PLAN OPERATOR (SBP)4776 456 CEA 9420 Non‐Exempt 7 122,290$       2,411$       2,538$       2,672$       2,813$       2,961$      3,117$       3,281$       3,454$      WATER TREATMENT PLANT CHIEF MAINTENANCE TECHNICIAN4781 444 CEA 9420 Non‐Exempt 7 122,879$       3,031$       3,190$       3,358$       3,535$      ‐$           ‐$           ‐$           ‐$          WATER TREATMENT PLANT SUPERVISOR3460 335 MME 9420 Exempt 3 123,304$       3,304$       3,304$       3,304$       4,128$      ‐$           ‐$           ‐$           ‐$          WHALE ROCK RESERVOIR SUPERVISOR3450 325 MME 9420 Exempt 3 122,997$       2,997$       2,997$       2,997$       3,745$      ‐$           ‐$           ‐$           ‐$          Page 6 of 6Packet Page 330Item 18 Supplemental Employee Salary Schedule CLASSIFICATION WC CLASS SCHEDULE STEPS IN RANGE 12345 11.00$ 11.00$ 11.00$ 11.24$ 11.68$ Aquatics Cashier 5 6 8810 Aquatics Maintenance Worker 5 6 9410 Building & Safety Intern 5 10 8810 *Childcare Aide/Camp Counselor 5 6 9410 Facility Host 5 6 9410 *Jr. Giants Coach 5 6 9410 *Pro-shop Staff 5 6 8810 *Seasonal Maintenance Worker Golf 8 6 9410 *Skate Park Attendant 5 6 9410 Student Intern 5 1 8810 *Teen Leader 5 6 9410 *Youth/Adult Sports Official 5 6 9410 12345 11.00$ 11.24$ 11.78$ 12.37$ 12.85$ *Childcare Teacher/Lead Camp Counselor 5 6 9410 CIP Engineering Assistant/Intern 3 2 8810 Event Planner 5 6 9410 Facility Lead 5 6 9410 Fire Intern 3 5 9410 Garden Assistant 5 6 9410 Hydrant Maintenance Worker 3 5 9410 *Jr. Giants Coordinator 5 6 9410 *Lifeguard 5 6 9410 Parking Booth Attendant 8 2 9410 *Pro-shop Lead 6 6 8810 Recreation Support Staff 5 6 9410 *Skate Park Ambassador 5 6 9410 *Skate Park Lead 5 6 9410 *Special Needs Support Staff 5 6 9410 Student Intern 6 1 8810 Transportation Eng. Intern 3 2 8810 Triathlon Lead 5 6 9410 12345 11.78$ 12.37$ 12.96$ 13.61$ 14.14$ Administrative Assistant (Golf)6 6 8810 Attorney Intern 5 1 8810 *Childcare Head Teacher 5 6 9410 Computer Training Instructor 6 6 8810 Contract Classes Coordinator 5 6 8810 Database Intern 3 1 8810 Engineering Assistant 3 2 8810 *Head Lifeguard 5 6 9410 Human Resources Intern 5 1 8810 IT Intern 3 1 8810 *Park Ranger 1 8 6 9420 *Pro-Shop Assistant 6 6 8810 Pub Ed Coordinator (FD) 5 5 8810 Senior Services Program Asst 5 6 8810 *Swim Instructor 5 6 9410 *Club STAR Director 5 6 9410 12345 12.96$ 13.61$ 14.25$ 14.97$ 15.55$ Facilities Assistant 5 6 9410 Lead Parking Attendant 8 2 9410 *Park Ranger 2 8 6 9420 SNAP 1 3 4 9410 12345 14.25$ 14.97$ 15.68$ 16.46$ 17.10$ Admin Asst 6 1 9410 *Aquatics Specialist (LBT) 5 6 9410 Parks Maintenance Worker 8 2 9420 Admin and CommunicaitonsSpecialist (LBT) 5 6 9410 Community Services Specialist (LBT) 5 6 9410 Facilities Specialist (LBT) 5 6 9410 Program Specialist (LBT)5 6 9410 *Ranger Service Specialist x2 (LBT) 8 6 9420 Recording Secretary 6 10 8810 SNAP II 3 4 9410 *Sports Specialist (LBT) 5 6 9410 Tree Climber Assistant 8 2 9420 WRF Lab (20 hr. max weekly) 3 13 9410 *Youth Services Specialist x6 (LBT) 5 6 9410 12345 15.68$ 16.46$ 17.25$ 18.11$ 18.81$ Accounting Assistant 3 1 8810 Adult Sports Official 5 6 9410 IT Assistant/Help Desk 3 1 8810 Key Blue = P&R Positions   * = Classifications that work with children (AB 218  doesn't apply)   EEO FUNCTION & CATEGORY City Worker 2 EEO Category EEO Function 9020 905 City Worker 3 EEO Category EEO Function 9180 909 WC Code WC Code City Worker 4 EEO Category EEO Function 9240 913 City Worker 5 EEO Category EEO Function 9210 917 WC Code WC Code City Worker 6 EEO Category EEO Function 9250 921 City Worker 7 EEO Category EEO Function 9220 925 WC Code WC Code Packet Page 331 Item 18 Maint Wker - Pool 8 6 9410 Maint Wker - Streets (Farmers Market) 8 2 9410 Police Operations Support Specialist 3 4 8810 SNAP III 3 4 9410 12345 17.25$ 18.11$ 18.97$ 19.92$ 20.70$ Parks Maintenance Worker II 8 2 9420 Legal Assistant 5 1 8810 *Special Swim Instructor (swim & classes) 5 6 9410 12345 18.97$ 19.92$ 20.87$ 21.91$ 22.76$ Admin Asst 1 6 1 8810 Legal Assistant 5 1 8810 GIS Technician 3 1 8810 Parking Enforcement Officer 3 2 9410 Maintenance Worker - Streets/Asphalt 8 2 9420 12345 20.87$ 21.91$ 22.95$ 24.10$ 25.04$ Administrative Hearing Officer 3 2 8810 Heavy Equipment Mechanic 7 2 9420 Administrative Assistant 6 1 8810 Landscape Inspector 3 2 9410 Maintenance Worker III 8 2 9420 Parking Meter Repair Worker 7 2 9410 Permit Technician I 5 10 8810 Planning Technician 5 10 8810 Signal & Strlight Tech 7 2 9410 WasteWater Collection Temp 7 13 9420 12345 22.95$ 24.10$ 25.25$ 26.51$ 27.55$ Bicycle Programs Assistant 5 2 8810 Engineering Technician 3 2 8810 Paralegal 5 1 8810 Planning Technician - Senior 5 10 8810 Utilities Services Tech (Entry Level)3 13 9420 WRRF Operator Temp 7 13 9420 Water Treatment Plant Trainee 7 13 9420 12345 25.25$ 26.51$ 27.78$ 29.16$ 30.30$ Assistant Planner 5 10 8810 Fire Inspector 3 5 9410 WRRF Operator Temp 7 13 9420 Urban Forest Inspector 3 2 9410 Utilities Services Tech (Senior)3 13 9420 12345 27.78$ 29.16$ 30.55$ 32.08$ 33.33$ Building Inspector 3 10 9410 12345 30.55$ 32.08$ 33.61$ 35.29$ 36.66$ Accountant 2 1 8810 Associate Planner 3 10 8810 Crime Analyst 2 4 8810 Database Administrator 3 1 8810 Plans Examiner 3 10 8810 Transportation Planner-Enginner I 2 2 9410 12345 33.61$ 35.29$ 36.97$ 38.82$ 40.33$ Engineer II 2 4 9410 Senior Accountant 2 1 8810 Process Improvement Analyst 2 1 8810 Transit Manager 2 12 9410 12345 36.97$ 38.82$ 40.67$ 42.70$ 44.36$ City Clerk Project Consultant 2 1 8810 12345 44.91$ 46.06$ Finance Consultant 2 1 8810 12345 74.30$ Parking Budget Specialist 2 1 8810 12345 13.04$ 14.20$ 16.00$ 17.98$ 20.10$ Mutual Aid (GS 1-5) 2 5 9420 12345 22.40$ 24.90$ 27.57$ 30.45$ 33.54$ Mutual Aid (GS 6-10) 2 5 9420 12345 36.84$ 44.16$ 52.51$ 62.05$ 72.99$ Mutual Aid (GS 11-15) 2 5 9420 City Worker - Hourly 12345 Commissioner 6 10 8810 9900 990 60.00$ Hazard Mat. Team Business Mgr 3 5 8810 9260 940 28.00$ 29.00$ 30.00$ Engineering Consultant 3 2 8810 9451 950 48.99$ 51.56$ 55.00$ 65.00$ 75.00$ Interim Assistant City Attorney 2 1 8810 9453 953 100.00$ PERS RETIRED ANNUITANTS 12345 Pkg Enforce. Officer (PERS Retiree) 3 2 9410 21.91$ 22.95$ 24.10$ 25.04$ City Worker 10 EEO Category EEO Function WC Code 9258 937 City Worker 8 *1-2 years experience EEO Category EEO Function 9230 929 City Worker 9 *2 years experience EEO Category EEO Function 9330 933 WC Code WC Code City Worker 10 *2‐4 years experience EEO Category EEO Function 9258 937 City Worker 11 EEO Category EEO Function 9410 941 WC Code WC Code City Worker 12 *AA, 5 yrs. exp, certifications EEO Category EEO Function 9460 945 City Worker 13 EEO Category EEO Function 9465 965 WC Code WC Code City Worker 14 EEO Category EEO Function 9470 966 City Worker 15 *4 yr degree , 2 yr exp, certs EEO Category EEO Function 9480 967 WC Code WC Code City Worker 16 EEO Category EEO Function 9490 968 City Worker 17 EEO Category EEO Function 9495 961 WC Code WC Code City Worker 18 EEO Category EEO Function 9496 991 City Worker 19 EEO Category EEO Function 9497 993 WC Code WC Code City Worker 20 EEO Category EEO Function 9498 994 City Worker 21 EEO Category EEO Function 9499 995 WC Code WC Code Packet Page 332 Item 18 12345 26.51$ 27.55$ IT Assistant (PERS Retiree) 3 1 8810 24.10$ 25.25$ 26.51$ 27.55$ Super. Admin Asst Temp (PERS Retiree)6 1 8810 26.51$ 27.55$ 12345 33.61$ 35.29$ 36.97$ 38.82$ 40.33$ Senior Admin Analyst (PERS Retiree)2 1 8810 12345 Temp Senior Civil Engineer (PERS Retiree) 2 2 9410 9455 969 44.53$ 46.76$ Adopted by Council 10/16/2018 City Worker 21 EEO Category EEO Function WC Code 9499 995 City Worker 11 EEO Category EEO Function WC Code 9410 941 City Worker 15 *4 yr degree , 2 yr exp, certs EEO Category EEO Function WC Code 9480 967 Packet Page 333 Item 18 Page intentionally left blank. Packet Page 334 Item 18 Meeting Date: 10/16/2018 FROM: Deanna Cantrell, Chief of Police Prepared By: Christine Wallace, Neighborhood Outreach Manager SUBJECT: PARTY REGISTRATION PROGRAM RECOMMENDATION 1.Receive an update o n the party registration pilot program. 2.Adopt a Resolution approving party registration as a permanent, no cost, voluntary program to be managed by the Police Department. (Attachment A) DISCUSSION Background The purpose of this item is to provide an update to the City Council on the first year of the pilot party registration program. This program was modeled after other programs in the United States (i.e. Boulder, etc.) to further implement the City’s ongoing efforts to address community concerns about noise in neighborhoods. Through those efforts, many initiatives were put forth to enhance or improve the quality of life in the City’s residential neighborhoods. Several are direct ly related to the City’s “town/gown” dynamics. In addition, the Neighborhood Wellness/Community Civility Working Group was formed in 2013 to also address quality of life in City neighborhoods. The party registration program was one of the recommendations developed by the Civility Working Group that was selected by the City Council for implementation. A variety of resident, student and governmental organizations have worked towards implementing quality of life programs that have had measurable improvements in neighborhoods which include: •Noise ordinance amendment – 2010 •Unruly gathering ordinance adopted and amended- 2010, 2015 •Social host ordinance – 2010 •Safety Enhancement Zone amendments – 2010, 2013 •Proactive code enforcement for neighborhood blight – 2012 •Clean Up week improvements – 2013 •Neighborhood Officer Program – 2013 •Neighborhood Walk & Talks – 2013 •SLOPD/Cal Poly MOU – 2015 Packet Page 335 Item 19 Cal Poly University and Cuesta College have proven to be excellent partners in these initiatives in assisting with information distribution, student group presentation facilitation and the creation of programs to hold students accountable for off campus behavior that negatively impacts the neighborhoods. The chart below shows noise complaint data from 2009-2017, but it should be noted that the total complaints in 2017 dropped below 1,500 for the first time since 1998. NSPY – Noise Party DAC – Disturbance Advisement Card warning CITE – Citation In January 2017, staff presented Council with a study session on party registration programs which was the final City-led recommendation of the Civility Report (Attachment B). On May 4, 2017, Council approved a voluntary party r egistration pilot program. The purpose of the party registration program is to provide event hosts with a voluntary opportunity to register their event with the Police Department. In case of a noise complaint, the host would be granted a notification/warning phone call to end the noise within 20 minutes. Should the noise continue, and further complaints are received, the host would be issued a citation if patrol found the noise to be in violation of the noise ordinance. Packet Page 336 Item 19 Pilot Program Review The pilot program launched on May 5, 2017. The data below provides the breakdown of registrations received and the outcome from May 5, 2017 to September 22, 2018: Submitted Approved Denied Warning Call Citation 88 69 19 8 1 Eight (8) applications were denied because the properties were on the “no warning” list and eleven (11) were denied because t he registration applications were submitted late. The citation that was issued was not appealed. The majority of registered parties had no complaints and/or subsequent warnings. While the majority of events being registered are from applicants between the ages of 18 and 24, registrations have also been received for wedding receptions, birthday parties and dinner parties. Party Registration applications are reviewed weekly (Attachment C). Applications that are approved are entered in the Police Department’s Spillman system by the Neighborhood Outreach Manager. The information is accessible to Dispatch who receives noise complaints and cross checks the complaint with the registered party entries and makes the warning call if an event is registered. Results of registered party complaints are compiled weekly. Once an application is approved, an email is sent to the applicant informing them of the approval and includes the link to the program guidelines. When an application is denied, an email is sent to the app licant with the reason for denial and an invitation to reply or call if the individual has questions. Staff considers the pilot program a success. Party registration has provided residents with a tool that encourages thoughtful social event planning and well managed events. The data provided for registered events show that registrants are making efforts to have little to no impact on their neighborhoods with regards to noise. 89% of registered parties received no warning phone calls or citations. Program Guidelines As approved by Council in May 2017, the pilot program guidelines are as follows: 1. Registrants must be at least 18 years old. 2. All party registrations must be submitted no later than one week in advance. 3. Registration applications must be submitt ed in person at the Police Department. A photo ID is required when submitting the application. 4. Registrants must be a resident of the property being registered. Registrants may not register someone else’s party. 5. Registrations may only be submitted for event s taking place on Friday or Saturday. Sundays may be registered if the following Monday is a holiday. Packet Page 337 Item 19 6. Events starting earlier than 8:00 am will not be permitted in the program. 7. Registration is only valid on the date listed on the form. 8. Registration information will be given to the dispatch center. If a noise complaint is received, a dispatcher will call the phone number listed on the registration form to inform the registrant of the complaint. 9. Registered parties will only receive one (1) telephone warning; subsequent complaints at the same location will require police response. 10. Registrant will have 20 minutes to end the noise. 11. If the registrant fails to answer the warning phone call, police will be dispatched to the location and a citation will be issued if the violation is verified. 12. If the registrant fails to end the noise within 20 minutes of the first phone call and a second complaint is received, police will be dispatched, and a citation will be issued if the violation is verified. 13. Criminal or municipal violations other than noise may result in police response without a telephone warning. These violations may include, but are not limited to: fights, public urination, parking violations, open container, underage consumption, unruly gathering and social host (providing alcohol to underage individuals). 14. Common area parties may not be registered. 15. Amplified music must be inside the house. 16. Houses that receive two phone warnings for separately registered parties lose registration privileges for nine (9) months aft er the second occurrence. 17. Properties that are on the premises (no warning) list may not be registered for parties. (Exception: Use permitted fraternity and sorority houses may register events if they have not had a noise violation in the preceding nine (9) months.) 18. Individuals who have received a noise violation citation or unruly gathering citation may not register a party within nine (9) months of the citation. 19. Registrants that have been issued an unruly gathering citation are disallowed to register a party. Public Engagement Staff solicited feedback from neighborhood groups, the Student Community Liaison Committee, and student organizations and the following recommendations were provided: • Change “house” to “property” throughout the guidelines to ensure exclusions don’t happen based on type of residence being registered. • Add the end time of “2 am” to #6. • Add online registration as an option. • Include the non-emergency phone number for SLOPD to the Guidelines. • Include recommendations on how to have a successful event to Guidelines. • Include language on the application to indicate the applicant understand the guidelines of the program. • Offer three (3) phone call warnings instead of two (2) as listed in #16. Student organizations and the Student Community Liaison Committee expressed a strong desire to retain the program and appreciated having the ability to make adjustments to their events to Packet Page 338 Item 19 avoid citation fines. Staff recommends the guidelines be amended to include the feedback provided above with the exception of offering three phone warnings for #16. Staff’s experience is that , offering more than two phone warnings lessens the accountability to party registrants. Also, staff recommends providing both online and in-office registration as to not exclude residents that lack access to technology. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines sec. 15278. FISCAL IMPACT The impact to staff time is minimal. Also, adding a fee to account for this time could become a barrier for program use and is not recommended. ALTERNATIVES 1. Not approve the permanent voluntary party registration program. Direct staff to continue with a pilot program and return with further review after an extended period . 2. Eliminate the voluntary party registration program. Attachments: a - Party Regisration Resolution b - Reading File - Neighborhood Wellness/Community Civility Report c - Party Registration Application Packet Page 339 Item 19 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING A VOLUNTARY PARTY REGISTRATION PROGRAM WHEREAS, the City of San Luis Obispo has made neighborhood wellness and quality of life a priority; and WHEREAS, recent neighborhood wellness initiatives have resulted in quieter neighborhoods; and WHEREAS, the Neighborhood Wellness/Community Civility Working Group Report recommended the establishment of a party registration program; and WHEREAS, the City Council directed staff to create a pilot program; and WHEREAS, the pilot program has shown to be an effective tool for residents to use in the neighborhoods and the Council now desires to permanently establish the program. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that hereby permanently approves the voluntary party registration program as described in the staff report for the October 16, 2018 City Council meeting 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 Packet Page 340 Item 19 Resolut ion No. _____ (2018 Series) Page 2 R ______ APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo , California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington City Clerk Packet Page 341 Item 19 City of San Luis Obispo Voluntary Party Registration Application Applications are subject to review and approval. Failure to complete the application in it’s entirety may disqualify the event from the registration program. After review, an email confirmation will be sent stating the acceptance or denial of the registration no less than 48 hours prior to the event. REGISTRANT’S NAME: ___________________________________________________________ DOB: ____________________________________________ (must be at least 18 y/o) PHONE NUMBER: ________________________________________________________________ EMAIL: ____________________________________________________________________________ ADDRESS OF EVENT: _____________________________________________________________ DATE OF PARTY: __________________________________________________________________ FRIDAY SATURDAY SUNDAY-PRECEDING HOLIDAY (CIRCLE ONE) PARTY START TIME: ______________________________________________________________ I confirm that the information I have provided is accurate and I certify that I am a resident of the address that I am registering. _________________________________________________________ _________________________________ Signature Today’s Date STAFF USE ONLY Approved: YES / NO Reason for Denial __________________________________________________________________ Email Sent Date: _____________________________________ STAFF SIGNATURE ________________________________ The information on this party registration form is a public document that may be subject to public disclosure pursuant to the California Public Records Act. Packet Page 342 Item 19 Meeting Date: 10/16/2018 FROM: Michael Codron, Community Development Director Prepared By: Rachel Cohen, Associate Planner SUBJECT: CANNABIS OPERATOR PERMIT APPLICATION REQUIREMENTS , RANKING CRITERIA, AND ANNUAL APPLICATION SUBMITTAL PERIOD RECOMMENDATION Adopt a resolution (Attachment A) approving the Cannabis Operator Permit Ranking Criteria (Exhibit A) and the Annual Application Submittal Period. DISCUSSION Background On May 15, 2018, the City Council adopted Ordinance 1647 (2018 Series) establishing overall regulations fo r cannabis businesses in the City and identifying the zones where various business types are allowed (see Attachment D). The regulations establish a two -step process that first requires certification of eligible business operators, and then approval of a land use permit for the specific site. The overall cannabis ordinance will not go into effect unless the residents of the City approve a revenue measure on the November 2018 election ballot that provides for the taxation of various cannabis business activit ies. During the discussion regarding the adoption of new cannabis regulations for the City of San Luis Obispo, staff discussed coming back to City Council with the application requirements and the evaluation criteria that would be used to rank any proposed cannabis business, in particular, storefront retailers. Application Requirements Applications for new cannabis business operator permits require a substantial amount of information to be provided and reviewed by City staff. The City Council included t hese requirements with its adoption of Ordinance 1647, which was consistent with public comment from potential business operators and members of the public. At least initially, the City will also be using a consultant to support this review as a strategy t o manage the workload and to benefit from the consultant’s prior experience. As identified on the application form, the following plans and informational items are required for a complete application. It should be noted that the application form is consist ent with Ordinance 1647 and the application itself does not require approval by the City Council - it is being provided for informational purposes and is subject to modification depending on the needs of the program. • Community Benefit: The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring and community support. • Education Plan: A plan describing the type of cannabis education and abuse prevention efforts that will be provided by the business to the community. Packet Page 343 Item 20 • Safety and Security Plan: A detailed safety and security plan outlining the measures that will be taken to ensure the safety of persons and property on the business site. The safety and security plan must be prepared by a qualified professional. • Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior lights that will provide adequate security lighting for the business site. • Site Plan: A scaled site plan of the business site, including all buildings, structures, driveways, park ing lots, landscape areas and boundaries. The site plan must be professionally prepared by a licensed civil engineer or architect. • Floor Plan: A scaled floor plan for each level of each building that makes up the business site, including the entrances, exits, walls and cultivation areas, if applicable. The floor plan must be professionally prepared by a licensed civil engineer or architect. • Water Efficiency Plan: The applicant shall demonstrate to the satisfaction of the City that sufficient water supply exists and that appropriate conservation measures for the use will be implemented. • Wastewater Plan: The applicant shall demonstrate to the satisfaction of the City that wastewater is minimized through, but not limited to, water efficient processes, recircula tion, and recycling. • Air Quality Plan: When deemed necessary by the City staff for purposes of compliance with CEQA or state cannabis regulations, the applicant shall provide a calculation of the businesses anticipated emissions of air pollutants and green house gas. The applicant shall also provide assurance that the business will comply with all Best Management Practices established by the San Luis Obispo County Air Pollution Control District. • Odor Control Plan: A detailed plan describing how the applicant will prevent all odors generated from the cultivation, manufacturing and storage of cannabis from escaping from the buildings on the business site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings. • Hazardous Materials Plan: To the extent that the applicant intends to store or use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state and local requirements for management of such substances. • Energy Efficiency Plan: Documentation that the applicant has identified the best way, including carbon free power sources to provide reliable and efficient energy solutions for their business. • Business Operations Plan: o Business Plan: A plan describing how the cannabis cultivation business will operate in accordance with City code, state law, and other applicable regulations. The business plan must include plans for handling cash and transporting cannabis and cannabis product s to and from the cultivation site. o Community Relations Plan: A plan describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted. o State Licenses: Copies of the state licenses relating to the commercial cannabis business licenses, the applicant holds (when available). Packet Page 344 Item 20 o Tax Compliance: A current copy of the applicant’s City business operations tax certificate, state sales tax seller’s permit, and the applicant’s most recent year’s financial statement and tax returns (for first time applicants, the business operations tax account will be set up in-house after the application has been submitted). o Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the cultivation business. o Budget: A copy of the applicant’s most recent annual budget for operations (if available) o Financial Capacity: Financial information such as bank balances, available loans and other sources of funding for the enterprise. o Price List: A list of the most recent or expected prices for all products and services provided by the applicant. Ranking Criteria With the above information in hand, the team reviewing applications will be able to rank applications based on specific criteria, which have points assigned based on how those criteria should be valued. Staff is proposing that these criteria be adopted by the City Council via a resolutio n, and that the Council authorizes the City Manager to modify the criteria in the future as may be needed to facilitate implementation of the program. The City Council should discuss both the criteria and the points availa ble under each category to ensure that the system appropriately reflects community values and interests. The following is an overview of the criteria proposed for evaluat ion of commercial cannabis business operator permits. Exhibit A includes more detail for each of the line items summarized below. 1.0 Community Benefit (Up to 20 points) 1.1 Local hiring and sourcing practices (Up to 10 points) 1.2 Continued support of approved community programs in San Luis Obispo (i.e. park cleanups, facility improvements, donating supplies/equipment to youth programs (Up to 10 Points) 2.0 Record of Compliance (Up to 20 points) 3.0 Local experience (Up to 10 points) 4.0 Equity and Labor Criteria (Up to 30 points) 5.0 Responsible Use Messaging (Up to 10 points) 6.0 Medical Retail Commitment (Up to 10 points) 7.0 Control of Business Location (Up to 10 points) 8.0 Sustainable and Environmental Practices (Up to 20 points) 9.0 Beneficial Uses (Up to 20 points) 10.0 Land Development (Up to 10 points) Packet Page 345 Item 20 Applying the Two-Step Process The application process to become a certifie d cannabis business operator is the first of two steps that a potential business must complete before it can begin operations. This agenda report and the resolution recommended for approval pertain to the first step. Ordinance 1647, approved by the City Co uncil in May 2018, includes all of the standards and requirements that pertain to the second step of obtaining land use approval. According to Section 9.10.070.B of the City’s Municipal Code (Ordinance 1647), the City Council will establish an application period for operator permits by resolution. The recommended resolution included as Exhibit A establishes the first application period to coincide with the first three weeks of 2019 (January 1 through close of business on January 22, 2019). Following this initial application period, staff is recommending that the City Council delegate its authority to the City Manager to open up new application periods on an as needed basis to include July 1 through July 31 of each calendar year. Issuance of Cannabis Business Operator Permits City staff will issue cannabis business operator permits to the top three applicants for storefront retail sales. Operator permits for cultivators are also limited to no more than 10,000 square feet of canopy each, and 70,000 square feet cumulatively. As a result, operator permits will not be issued for more than 70,000 square feet of canopy in total. Operator permits will be issued to all other cannabis business types that meet minimum scoring criteria as noted in Exhibit A. CONCURRENCES The proposed Cannabis Operator Permit Application Requirements and Ranking Criteria has been reviewed by staff within the Planning Division, Police Department, Fire Department, Utilities Department, Administration and the City Attorney’s Office . Staff comments provided during review of the proposed project are incorporated into the application requirements and ranking criteria (Exhibit A) outlined in the resolution. ENVIRONMENTAL REVIEW Business and Professions Code section 26055, subdivision (h), as amended by SB 94 (otherwise known as the Medical and Adult Use Cannabis Regulation and Safety Act (MAUCRSA)), provides that the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance, rule, or regulation by a local jur isdiction that requires discretionary review and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity, so long as the discretionary review includes any applicable environmental review pursuant to CEQA. Future app lications for commercial cannabis business activities in the City will be subject to CEQA, per the normal environmental review process. Packet Page 346 Item 20 FISCAL IMPACT As legal cannabis sales and production is an emerging industry, staff has worked with two different consultants, HdL and MuniServices, to develop an estimated amount of revenue to expect from a cannabis business tax. Optimistically, cannabis business activities would begin at the earliest in February or March 2019. However, it is expected to take some time for the City to establish its permitting and regulatory protocols, and for businesses to find appropriate properties and obtain the necessary permits to operate. As a result, tax revenues from Cannabis are anticipated to increase through the next several years as businesses mature. The annual projected revenue from cannabis related businesses is expected to increase over the next several years to an estimate of $1,500,000. Cannabis business tax revenue estimates have been included in the City’s Fiscal Health Response Plan presented to Council on April 17, 2018. The plan includes an estimate of $100,000 in FY 2018-2019 in cannabis tax revenue. According to City budget policies for cost recovery, these activities will also include fees that will be based on 1 00% cost recovery. In November, City staff will return to the City Council with a proposed fee schedule to accomplish this. ALTERNATIVES 1. Modify the Proposed Resolution. The City Council is free to make modifications to the Cannabis Operator Permit Application Requirements and Ranking Criteria. The Council has the ability to make modifications during the meeting. 2. Continue Consideration of the Resolution to a Future Date. The City Council could direct staff to conduct additional research or outreach on mo re or more components of the recommended resolution. If this alternative is taken, the Council should provide direction to staff regarding additional information needed to move forward. Attachments: a - Draft Resolution b - Exhibit A - Ranking Criteria c - Application Requirements d - O-1647 Zoning Amendments for Cannabis Business and Personal Cultivation Packet Page 347 Item 20 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING CANNABIS OPERATOR PERMIT RANKING CRITERIA AND THE ANNUAL APPLICATION SUBMITTAL PERIOD (CODE-1058-2017) WHEREAS, in 2017, the California legislature passed, and Governor Brown signed Senate Bill 94, which enacted the Medicinal and Adult -Use Cannabis Regulation and Safety Act (“MAUCRSA”), repealed the Medical Cannabis Regulation and Safety Act (“MCRSA”) but incorporated certain provisions of MCRSA into the licensing provisions established by Proposition 64; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on May 15, 2018 and adopted Ordinance 1647 that amended Title 17 (Zoning Regulations) of the Municipal Code to establish land use regulations for the operation of commercial cannabis businesses, and repealed and replaced Title 9, Public Peace, Morals and Welfare (Chapter 9.10.) of the Municipal Code related to cannabis regulation; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing on October 16, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, for the purpose of establishing the Cannabis Operator Permit Ranking Criteria (Exhibit A); and WHEREAS, the City Council of the City of San Luis Obispo conduct ed a public hearing on October 16, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, for the purpose of establishing the annual application submittal period. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. 1. The proposed Cannabis Operator Permit Ranking Criteria (Exhibit A) establishes the ranking criteria for individuals who apply for a Cannabis Operator Permit to operate a cannabis business activity in the City consistent with Municipal Code Chapter 9.10, Section 9.10.070 (A). 2. The proposed timeframe in which applications are submitted annually is consistent with Municipal Code Chapter 9.10, Section 9.10.070 (B). SECTION 2. Environmental Review. The project is exempt from environmental review per the Business and Professions Code (Section 26055(h)) because the project includes the adoption of ordinances, rules, or regulations for the purpose of regulating cannabis business activity in the City. The City’s cannabis business regulations require discretionary review and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity. Packet Page 348 Item 20 Resolution No. _____ (2018 Series) Page 2 R ______ Future applications for commercial cannabis business activities in the City will be subject t o CEQA, per the normal environmental review process. SECTION 3. Action. The City Council hereby approves Cannabis Operator Permit Ranking Criteria (Exhibit A) and annual application submittal timeframe subject to the following conditions: 1. All Cannabis Businesses shall be evaluated by the Cannabis Operator Permit Ranking Criteria at outlined in Exhibit A. 2. The first annual application submittal period shall coincide with the first three weeks of 2019 (January 1 through close of business on January 22, 2019). Following this initial application period, the City Council delegates its authority to the City Manager to open up new application periods on an as needed basis to include July 1 through July 31 of each calendar year. 3. The City Manager is authorized to make minor modifications to this evaluation criteria to ensure that the application process is implemented in a manner that is consistent with the intent of Ordinance 1647. Any future changes to the criteria outlined in Exhibit A will be published at least 10 days in advance of the application period opening. 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 Page 349 Item 20 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 Page 350 Item 20 City of San Luis Obispo Commercial Cannabis Business Operator Permit Evaluation Criteria REVIEWER’S INSTRUCTIONS 1. Applicant will provide an electronic copy of the complete proposal 2. City will compile any additional information related to the applicant for consideration 3. Discussion between the reviewers during the evaluation will be limited to clarification to ensure an equal understanding of the application. 4. Questions can also be directed to the consultant. 5. Each reviewer will complete a score sheet for each proposal. 6. Each completed score sheet will be given to the consultant. 7. The consultant will review all three score sheets for each proposal. 8. If there is a scoring deviation between reviewers on any scoring criteria of more than 30% the consultant will discuss this specific score with the reviewers. 9. An adjusted score must be agreed upon by the reviewer and the consultant. 10. Once all criteria scores are reviewed and agreed upon, the total aggregate score for all three reviewers will be totaled then divided by three to obtain the final score. Packet Page 351 Item 20 City of San Luis Obispo Commercial Cannabis Business Operator Permit Evaluation Criteria Cannabis Merit-Based Criteria and Possible Points All applications for a Cannabis Commercial Business Operators Permit will be evaluated using the merit criteria outlined below. Retail cannabis business applicants will be evaluated based on the General Merit Criteria. Manufacturing, cultivation and other cannabis businesses will be evaluated on the General Merit Criteria plus Supplement Merit Criteria. Applicants may provide supplemental documentation or references with the application to support statements or information in the application. MINIMUM SCORING CRITERIA Applicants must receive a minimum score of 70% of all available points in order to be issued a Cannabis Operator’s permit. AUTOMATIC FAIL CRITERIA • Application received late • Application incomplete • Facility does not meet City business licensing standards GENERAL M ERIT CRITERIA 1.0 Community Benefit Applicant demonstrates a commitment to City through local hiring and community support. Select all that apply within each category and total score. (Up to 20 Points – Deviation Threshold 6 Points) 1.1 Local hiring and sourcing practices (Up to 10 Points) Over 90% of employees will be San Luis Obispo County resident 5 Points Over 60% of employees will be San Luis Obispo County resident 2 Points Over 80% of supplies and equipment will be sourced from local businesses 5 Points Over 50% of supplies and equipment will be sourced from local businesses 2 Points 1.2 Continued support of approved community programs in San Luis Obispo (i.e. park cleanups, facility improvements, donating supplies/equipment to youth programs (Up to 10 Points) Providing over 20 hours per month of approved community support 5 Points Provide 10-20 hours per month of approved community support 2 Points Provide over $2,000 per month for approved community support 5 Points Provide up to $500 per month for approved community support 2 Points Packet Page 352 Item 20 City of San Luis Obispo Commercial Cannabis Business Operator Permit Evaluation Criteria 2.0 Record of compliant current or previous business operations Applicant has previous record of operating a compliant commercial cannabis and/or other commercial business. A compliant business operation does not have a documented history of local or state level violations relating, but not limited to: business code, public safety, environmental impacts, employment, and financial payments. (Up to 20 Points – Deviation Threshold 6 Points) Applicant has operated a compliant previous commercial cannabis business for 5 or more years 20 Points Applicant has operated any compliant commercial business for 5 or more years 15 Points Applicant has operated a compliant commercial cannabis business for less than 5 years 10 Points Applicant has operated any compliant commercial business for less than 5 years 5 Points Applicant has operated any non-compliant commercial cannabis business and/or other commercial business (Reviewer discretion on severity of non-compliance) 0 - 5 Points 3.0 Local Experience San Luis Obispo is a unique business market. Medical cannabis businesses have been operating in San Luis Obispo County for over 20 years under Proposition 215. The City encourages applicants to utilize the local knowledge of current and previous cannabis and non-cannabis businesses operators. Majority of applicant's primary principals reside in the County of San Luis Obispo and the person(s) has been residing at a primary residence within San Luis Obispo County immediately preceding the date of the application. A primary principal is defined as an owner with at least a 10% ownership share, officer or director. Select all that apply and total points (Up to 10 Points – Deviation Threshold 3 Points). Majority of primary principals have resided in San Luis Obispo County for 5 or more years 5 Points Majority of primary principals have resided in San Luis Obispo County for less than 5 years 2 Points Majority of primary principals have operated a business in San Luis Obispo County for 5 or more years 5 Points Majority of primary principals have operated a business in San Luis Obispo County for less than 5 years 2 Points Packet Page 353 Item 20 City of San Luis Obispo Commercial Cannabis Business Operator Permit Evaluation Criteria 4.0 Equity and Labor Criteria Applicant commits to equity ownership and competitive compensation in comparison to other mainstream commercial businesses. Applicants commitment will be reevaluated during annual permit renewal process. Select all that apply and total score. (Up to 30 Points – Deviation Threshold 9 Points) Applicant includes 3 or more primary principals who historically have earned 80% or less of the median local income 10 Points Applicant includes 1 or 2 primary principals who historically have earned 80% or less of the median local income 5 Points Business will have an average pay rate for entry and mid-level positions of at least 40% more than the median local income for similar positions in other mainstream businesses 10 Points Business will have an average pay rate for entry and mid-level positions of at least 20% more than the median local income for similar positions in other mainstream businesses 5 Points Base wages of employees exceed the minimum wage by a least $ 3.00. 5 Points Business will allow collective bargaining at 10 or more employees 5 Points 5.0 Responsible Use Messaging Applicant commits to responsible use messaging practices. Select all that apply and total score. (Up to 10 Points – Deviation Threshold 3 Points) Business articulates a coherent strategy to keep adult-use cannabis products out of the hands of consumers under the age of 21 2 Points Business plans to use “responsible use” language on packaging and messaging 2 Points Business plans to offer and promote lower THC dose, higher CBD dose product options 2 Points Business plans to only advertise in mediums (Radio, print, web) with audience of 30% or fewer under 18 years of age. 2 Points Business plans to post notice of availability of local cannabis use disorder treatment hotline in visible location in shop 1 Points Business plans to offer “user determined quota” program where customers can declare planned THC mg consumption for the coming months 1 Points 6.0 Medical Retail Commitment Applicant commits to provide retail medical cannabis products to consumers. 10 Points Packet Page 354 Item 20 City of San Luis Obispo Commercial Cannabis Business Operator Permit Evaluation Criteria 7.0 Control of business location Applicant demonstrates control of a site to ensure a successful and timely transition from being awarded a license to opening the business. Incomplete purchase or lease agreements do not constitute site control. (Up to 10 Points – Deviation Threshold 3 Points) Majority ownership in site property 10 Points Minority ownership in site property 8 Points 10+ Years future lease of site property 8 Points 5-10 Years future lease of site property 5 Points 2-5 Years future lease of site property 3 Points Less than 2 years future lease of site property 1 Point No ownership or future lease in place for site property 0 Points TOTAL GENERAL MERIT CRITERIA AVAILABLE POINTS = 110 Packet Page 355 Item 20 City of San Luis Obispo Commercial Cannabis Business Operator Permit Evaluation Criteria SUPPLEMENTAL MANUFACTURING, CULTIVATION AND OTHER COMMERCIAL CANNABIS BUSINESS CRITERIA 8.0 Sustainable and Environmental Applicant demonstrates past experience in and /or commits to sustainable and environmental business or building practices utilizing recognized industry standards. Applicants actions will be reevaluated during annual permit renewal process. Select all that apply and total score (Up to 20 Points – Deviation Threshold 6 Points) Business will recycle waste water (utilize purple pipe when available) 5 Points Applicant will utilize certified organic practices 3 Points Business will utilize carbon free power sources for majority of power 1 -5 Points Business will utilize energy efficient lighting 1 -4 Points Business will utilize efficiencies to reduce water use 1 -3 Points 9.0 Beneficial Uses Applicant demonstrates an intent to devote significant resources to pursue or evaluate cannabis products with a focus on pharmaceutical benefits and limited psychoactive properties. S elect all that apply and total score (Up to 20 Points – Deviation Threshold 6 Points) Applicant will devote more than 80 % of its operations to products with beneficial uses 10 Points Applicant will devote more than 50% of its operations to products with beneficial uses 5 Points Applicant will devote more than 30% of its operations to products with beneficial uses 3 Points Applicant will devote more than 80 % of its operations to research and development of products with beneficial uses 10 Points Applicant will devote more than 50% of its operations to research and development of products with beneficial uses 5 Points Applicant will devote more than 50% of its operations to research and development of products with beneficial uses. 3 Points 10.0 Land Development Applicant commits to develop raw land for commercial cannabis business facility 10 Points SUPPLEMENTAL MERIT CRITERIAL TOTAL AVAILABLE POINTS = 50 Packet Page 356 Item 20 CITY OF SAN LUIS OBISPO (Receiving Department) (Address of Receiving Department) (Phone Number) Commercial Cannabis Business Operators Permit Application A. Business Information Business Name: Property Address: Assessor Parcel Number: Zoning Designation: B. Business Type (Check all that apply) Cultivation - Specialty (Up to 5,000 Sq. Ft. Max) Cultivation - Small (5,001 - 10,000 Sq. Ft. Max) Cultivation – Nursery (Up to 10,000 Sq. Ft. Max) Manufacture (Non-volatile Raw Product Extraction) Manufacture (Cannabis Infusion) Manufacture (Itinerant – No permanent facility) Manufacturer (Research and Development) Distributor Testing Laboratory Retailer Storefront (Adult-use) Retailer Storefront (Medical) Retailer Storefront (Adult-use and Medical) Retailer Non-storefront (Adult-use) Retail Non-Storefront (Medical) Retail Non-storefront (Adult-use and Medical Transporter Microbusiness (No more than 50% GR from cultivation, distribution and manufacturing) Microbusiness (More than 50% GR from cultivation, distribution and manufacturing) C. Applicant Information Name of Primary Responsible Party Completing the Application: Title: DOB: Social Security No: If applicant is a not for profit, corporation, partnership or other business entity, please identify: Name of Business Entity: Type of Ownership: Federal Tax Id: Start Date: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact (check one) Mail Phone Email *Primary Principal, are all persons with at least 10%interest in the cannabis business, which includes partners, officers, directors, and stockholders of every corporation, limited liability company, or general limited partnership that owns at least 10% of the stock, capital, profits, voting rights, or membership interest of the commercial cannabis business or that is one of the partners in the commercial cannabis business; the managers of the commercial cannabis business. Packet Page 357 Item 20 D. Additional Responsible Party Information Name: Title: DOB: Social Security No: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact (check one) Mail Phone Email Please attach additional sheets if there are more than 2 Responsible Parties. E. Information on Property Owner or Landlord Name: Mailing Address: Primary Phone No: Alt. Phone No: Email Address: Preferred method of contact (check one) Mail Phone Email If the applicant is not the legal owner of the property, the application must be accompanied by a notarized Owner’s Statement of Consent to operate a commercial cannabis business on the property. F. Related License Information The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years. Yes No (If yes, please provide the following information) Name: City or County: Start Date: End Date: Business Name: Business Type: Please attach additional sheets if necessary. Packet Page 358 Item 20 Required Submissions (Please check the box for each attachment) Please attach the following documents to your application: Community Benefit: The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring and community support. Education Plan: A plan describing the type of cannabis education and prevention efforts that will be provided by the business to the community. Safety and Security Plan: A detailed safety and security plan outlining the measures that will be taken to ensure the safety of persons and property on the business site. The safety and security plan must be prepared by a qualified professional. Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior lights that will provide adequate security lighting for the business site. Site Plan: A scaled site plan of the business site, including all buildings, structures, driveways, parking lots, landscape areas and boundaries. The site plan must be professionally prepared by a licensed civil engineer or architect. Floor Plan: A scaled floor plan for each level of each building that makes up the business site, including the entrances, exits, walls and cultivation areas, if applicable. The floor plan must be professionally prepared by a licensed civil engineer or architect. Water Efficiency Plan: The applicant shall demonstrate to the satisfaction of the City that sufficient water supply exists for the use. Wastewater Plan: The applicant shall demonstrate to the satisfaction of the City that wastewater is minimized through, but not limited to, water efficient processes, recirculation, and recycling. Air Quality Plan: When deemed necessary by the City staff for purposes of compliance with CEQA or state cannabis regulations, the applicant shall provide a calculation of the businesses anticipated emissions of air pollutants and greenhouse gas. The applicant shall also provide assurance that the business will comply with all Best Management Practices established by the San Luis Obispo County Air Pollution Control District. Odor Control Plan: A detailed plan describing how the applicant will prevent all odors generated from the cultivation, manufacturing and storage of cannabis from escaping from the buildings on the business site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings. Hazardous Materials Plan: To the extent that the applicant intends to use any hazardous materials in its operations, the applicant shall provide a hazardous materials management plan that complies with all federal, state and local requirements for management of such substances. Energy Efficiency Plan: Documentation that the applicant has identified the best way, including carbon free power sources to provide reliable and efficient energy solutions for their business. Business Operations Plan • Business Plan: A plan describing how the cannabis cultivation business will operate in accordance with City code, state law, and other applicable regulations. The business plan must include plans for handling cash and transporting cannabis and cannabis products to and from the cultivation site. • Community Relations Plan: A plan describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted. • State Licenses: Copies of the state licenses relating to the commercial cannabis business licenses, the applicant holds (when available). • Tax Compliance: A current copy of the applicant’s city business operations tax certificate, state sales tax seller’s permit, and the applicant’s most recent year’s financial statement and tax returns (for first time applicants, the business operations tax account will be set up in-house after the application has been submitted). • Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the cultivation business. • Budget: A copy of the applicant’s most recent annual budget for operations (If available) • Financial Capacity: Financial information such as bank balances, available loans and other sources of funding the enterprise. • Price List: A list of the most recent or expected prices for all products and services provided by the applicant. Packet Page 359 Item 20 G. City Authorization I, the applicant, provide authorization and consent for the City Manager or his/her designee to seek verification of the information contained on this application. H. Indemnification I, the applicant, agree to the fullest extent permitted by law, any actions taken by a public officer or employee under the City of San Luis Obispo regulations for Commercial Cannabis Businesses, shall not become a personal liability of any public officer or employee of the City. To the maximum extent permitted by law, the permittee shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of San Luis Obispo, the San Luis Obispo City Council, and its respective officials, officers, employees, representatives, agents and volunteers from any liability, damages, actions, claims, demands, litigations, loss (direct or indirect), causes of action, proceedings, or judgments (including legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) against the City to attach, set aside, void or annul, any cannabis-related approvals and actions and strictly comply with the conditions under which such permit is granted, in any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys’ fees. I. Nonrefundable Filing Fee I, the applicant, understand and accept that the nonrefundable filling fee of $(XXX) must be submitted with the competed Commercial Cannabis Business Operators Permit Application and will be retained by the city regardless of the out-come of the application review. Background – Request for Live Scan Services I, the applicant, understand that a completed and processed Request for Live Scan Service, State of California Form BCIA 8016, as determined by the City of San Luis Obispo, by a duly authorized business must be provided for the applicant and all interested parties. All applicable fees and charges are the responsibility of the applicants and interested parties. J. Applicant’s Certification I agree to abide by and conform to the conditions of the permit and all provisions of the San Luis Obispo Municipal Code pertaining to the establishment and operation of the commercial cannabis business. I acknowledge that the approval of the Commercial Cannabis Business Operators Permit shall, in no way, permit any activity contrary to the San Luis Obispo Municipal Code, or any activity which is in violation of any applicable law. I certify under penalty of perjury under the laws of the State of California, that I have personal knowledge of the information contained in this application, and that the information contained herein is true and correct. Signature: Date: The information contained on this document is subject to disclosure under the Public Records Act. Applicants providing false or misleading information in the permitting process will result in rejection of the application an d/or nullification or revocation of any issued permit. All commercial cannabis permits must be approved by the City Council. The City may attach conditions to the permit. A commercial cannabis permit may be denied if any of the following findings are made: (i) The application does not meet all requirements of the commercial cannabis ordinance; or (ii) Approval would very likely result in harm to public safety, health, or welfare; or (iii) Potential negative impacts of the use cannot be mitigated with conditions or through the ordinance requirements. Applicants will be notified regarding application completeness Packet Page 360 Item 20 COMMERCIAL CANNABIS BUSINESS OPERATORS PERMIT APPLICATION OWNER’S STATEMENT OF CONSENT If the applicant is not the owner of record of the subject site, the following Statement of Consent must be completed by the owner or the owner’s authorized representative, granting the applicant permission to apply for a cannabis cultivation business permit. This form must be notarized. To: City of San Luis Obispo (Department) (Address) San Luis Obispo, CA 93401 I, the undersigned legal owner of record, hereby grant permission to: Applicant: ___________________________________ Phone:___________________________ Mailing Address: ________________________________________________________________ To operate a commercial cannabis business on the property described below. I agree to abide by and conform to the conditions of the permit and all provisions of the San Luis Obispo Municipal Code pertaining to the establishment and operation of the commercial cannabis business. I acknowledge that the approval of the Commercial Cannabis Business Operator Permit shall, in no way, permit any activity contrary to the San Luis Obispo Municipal Code, or any activity which is in violation of any applicable law. The subject property is located at: _________________________________________________ Assessor’s Parcel Number: ________________________________________________________ Printed Name of Owner of Record: _________________________________________________ Address of Owner of Record: ______________________________________________________ Phone: __________________________Email address: _________________________________ Signature of Owner of Record: _______________________________Date: ________________ Packet Page 361 Item 20 Packet Page 362 Item 20 Packet Page 363 Item 20 Packet Page 364 Item 20 Packet Page 365 Item 20 Packet Page 366 Item 20 Packet Page 367 Item 20 Packet Page 368 Item 20 Packet Page 369 Item 20 Packet Page 370 Item 20 Packet Page 371 Item 20 Packet Page 372 Item 20 Packet Page 373 Item 20 Packet Page 374 Item 20 Packet Page 375 Item 20 Packet Page 376 Item 20 Packet Page 377 Item 20 Packet Page 378 Item 20 Packet Page 379 Item 20 Packet Page 380 Item 20 Packet Page 381 Item 20 Packet Page 382 Item 20 Packet Page 383 Item 20 Packet Page 384 Item 20 Packet Page 385 Item 20 Packet Page 386 Item 20 Packet Page 387 Item 20 Packet Page 388 Item 20 Packet Page 389 Item 20 Packet Page 390 Item 20 Packet Page 391 Item 20 Packet Page 392 Item 20 Packet Page 393 Item 20 Packet Page 394 Item 20 Packet Page 395 Item 20 Packet Page 396 Item 20