HomeMy WebLinkAbout11-13-2018 Agenda PacketTuesday, November 13, 2018
4:00 PM RESCHEDULED
REGULAR MEETING
Council Chamber
990 Palm Street
CALL TO ORDER: Mayor Heidi Harmon
ROLL CALL: Council Members Aaron Gomez, Andy Pease, Dan Rivoire,
Vice Mayor Carlyn Christianson and Mayor Heidi Harmon
PUBLIC COMMENT ON AGENDA ITEMS ONLY
STUDY SESSION ITEMS
1.PARKING MANAGEMENT ISSUES AND STRATEGIES
(GRIGSBY / BOCHUM – 90 MINUTES)
Recommendation:
Receive a presentation on the status of parking and access issues facing the City of San Luis
Obispo and provide feedback and direction on various policy and program elements that will
guide future parking management and policy revisions.
Tuesday, November 13, 2018
6:00 PM
RESCHEDULED
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 Aaron Gomez
PRESENTATIONS
2. NATIONAL HOSPICE MONTH PROCLAMATION
PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (not to exceed 15
minutes total)
The Council welcomes your input. You may address the Council by completing a speaker slip
and giving it to the City Clerk prior to the meeting. At this time, you may address the Council
on items that are not on the agenda. Time limit is three minutes. State law does not allow the
Council to discuss or take action on issues not on the agenda, except that members of the
Council or staff may briefly respond to statements made or questions posed by persons
exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to
follow up on such items.
CONSENT AGENDA
Matters appearing on the Consent Calendar are expected to be non-controversial and will be
acted upon at one time. A member of the public may request the Council to pull an item for
discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of
the Council chooses another time. The public may comment on any and all items on the
Consent Agenda within the three-minute time limit.
San Luis Obispo City Council Agenda November 13, 2018 Page 3
3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
(PURRINGTON)
Recommendation:
Waive reading of all resolutions and ordinances as appropriate.
4. REVIEW MINUTES OF THE SEPTEMBER 26, 2018 AND OCTOBER 16, 2018
CITY COUNCIL MEETINGS (PURRINGTON)
Recommendation:
Approve the minutes of the City Council meetings held on September 26, 2018 and October
16, 2018.
5. CONSIDERATION OF THE HUMAN RELATIONS COMMISSION’S
RECOMMENDED PRIORITIES FOR THE 2019-2020 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AND GRANTS-IN-AID (GIA)
PROGRAMS (CODRON / VERESCHAGIN)
Recommendation:
Approve Community Development Block Grant and Grants-in-Aid funding priorities for
2019-2020, as recommended by the Human Relations Commission.
6. ANNUAL MONITORING OF THE AVILA RANCH DEVELOPMENT
AGREEMENT AND COMMUNITY FACILITIES DISTRICT
(CODRON / RICKENBACH)
Recommendation:
Receive and file the annual monitoring report for the Avila Ranch Development Agreement
and Community Facilities District.
7. 2018 ASSISTANCE TO FIREFIGHTERS GRANT (AGGSON / BLATTLER)
Recommendation:
1. Authorize the Fire Department to apply for a grant to the Federal Assistance to
Firefighters Grant (AFG) Program for the amount of $158,155 to acquire replacement
portable radios and associated accessories.
2. Authorize the City Manager, or designee, to execute the grant documents and approve
the budget changes necessary to appropriate the grant amount upon notification that the
grant has been awarded.
San Luis Obispo City Council Agenda November 13, 2018 Page 4
8. AMENDMENT OF RESOLUTION OF INTENT TO APPLY THE CAPITAL
FACILITIES FEE PROGRAM AND WATER AND WASTEWATER CAPACITY
AND CONNECTION PROGRAM DEVELOPMENT IMPACT FEES TO NEW
DEVELOPMENT (CODRON / FOWLER)
Recommendation:
Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, amending previously adopted Resolution No. 10849 (2017 Series) and
modifying the eligibility criteria for establishing which development review projects are
exempt from participating in the newly adopted capital facilities fee and the water and
wastewater capacity and connection fee programs based on the date of building permit
application.”
9. REQUEST FOR ALTERNATIVE INCENTIVE TO PROVIDE FOR AFFORDABLE
HOUSING THAT INCLUDES A DENSITY BONUS INCREASE OF 43 PERCENT,
WHERE 35 PERCENT IS NORMALLY ALLOWED, FOR 3680 BROAD STREET
(CITY FILE NO. AFFH-1902-2018) (CODRON / COHEN)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, approving the alternative incentives to provide for affordable housing
that includes a density bonus of 43 percent, where 35 percent is normally allowed, as
represented in the City Council agenda report and attachments dated November 13, 2018.
The project is categorically exempt from environmental review (3680 Broad Street) (AFFH-
1902-2018).”
10. WATER ENERGY EFFICIENCY PROJECT FUNDING (MATTINGLY / FLOYD)
Recommendation:
1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing reimbursement to the California Energy Commission for
financing the Water Energy Efficiency Project;” and
2. Authorize the Director of Utilities to execute the financial assistance application for the
Water Energy Efficiency Project.
11. TREE MAINTENANCE JOB ORDER CONTRACT (GRIGSBY / KLOEPPER)
Recommendation:
1. Approve Special Provisions for Job Order Contract 2018 – Tree Maintenance; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the contract to the lowest responsible bidder.
San Luis Obispo City Council Agenda November 13, 2018 Page 5
12. PARTICIPATE IN THE STATEWIDE COMMUNITY INFRASTRUCTURE
PROGRAM (SCIP) (CODRON / FOWLER)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing the City to join the Statewide Community Infrastructure
Program; authorizing the California Statewide Communities Development Authority to
accept applications from property owners, conduct special assessment proceedings and levy
assessments within the territory of the City of San Luis Obispo; approving form of
acquisition agreement for use when applicable; and authorizing related actions.”
PUBLIC HEARING AND BUSINESS ITEMS
13. WATER RESOURCE RECOVERY FACILITY PROJECT CLEAN WATER STATE
REVOLVING FUND LOAN AGREEMENT (MATTINGLY / HIX – 10 MINUTES)
Recommendation:
Approve the Clean Water State Revolving Fund loan agreement between the City of San
Luis Obispo and the California State Water Resources Control Board for $140 million for
the Water Resource Recovery Facility Project and authorize the Utilities Director to execute
the agreement.
14. APPROVAL OF A COMMUNITY WORKFORCE AGREEMENT (FORMERLY
KNOWN AS PROJECT LABOR AGREEMENT) FOR THE WATER RESOURCE
RECOVERY FACILITY PROJECT (DIETRICK / MATTINGLY / HIX – 110 MINUTES)
Recommendation:
Authorize the City Manager to enter into a Community Workforce Agreement with The Tri-
Counties Building and Construction Trades Council, AFL-CIO and The Signatory Craft
Councils and Unions for the Water Resource Recovery Facility Project.
15. STATUS UPDATE FOR THE 2019-21 GOAL-SETTING AND FINANCIAL PLAN
PROCESS (JOHNSON / ELKE – 60 MINUTES)
Recommendation:
Receive and discuss the Status of 2017-19 Major City Goals and Other Important
Objectives, and; the City Fiscal Health Response Plan, and; the City General Plan Update,
and; a City Strategic Scan, in preparation for the 2019-21 goal-setting and Financial Plan
process, and confirm the date for the Goal Setting workshop on Thursday, February 7, 2019
at 5:00 pm.
San Luis Obispo City Council Agenda November 13, 2018 Page 6
16. PUBLIC HEARING - COMMUNITY CHOICE ENERGY PROGRAM OPTIONS
INCLUDING INTRODUCING AN ORDINANCE AND ADOPTING A
RESOLUTION TO JOIN MONTEREY BAY COMMUNITY POWER
(HILL / READ – 30 MINUTES)
Recommendation:
Report with recommendation will be included in Council Agenda Report available on Friday
November 9, 2018.
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 Rescheduled City Council Meeting will be held on Tuesday, November 27,
2018 at 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 meetings accessible to the
public. Upon request, this agenda will be made available in appropriate alternative formats to
persons with disabilities. Any person with a disability who requires a modification or
accommodation in order to participate in a meeting should direct such request to the City
Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible.
Telecommunications Device for the Deaf (805) 781-7107.
City Council regular meetings are televised live on Charter Channel 20. Agenda related
writings or documents provided to the City Council are available for public inspection in the
City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal
business hours, and on the City’s website www.slocity.org. Persons with questions concerning
any agenda item may call the City Clerk’s Office at (805) 781-7100.
Meeting Date: 11/13/2018
FROM: Daryl Grigsby, Public Works Director
Prepared By: Tim Bochum, Deputy Director of Transportation, Public Works
SUBJECT: STUDY SESSION ON PARKING MANAGEMENT ISSUES AND
STRATEGIES
RECOMMENDATION
Receive a presentation on the status of parking and access issues facing the City of San Luis
Obispo and provide feedback and direction on various policy and program elements that will
guide future parking management and policy revisions.
REPORT-IN-BRIEF
The City of San Luis Obispo operates a comprehensive parking management program that
encompasses all areas of the city. The City’s parking program has similar qualities to those in
much larger cities (i.e. structured and surface parking, pay for use operations such as meters or
permits, neighborhood parking programs, parking demand reduction, park and ride facilities,
etc). The economic vitality and quality of life in the downtown, commercial areas and the
neighborhoods is dependent on actively managed parking. Trends such as changes in the
downtown, growth patterns in the city, technological enhancements, Cal Poly student housing,
and others have current and future impacts on parking and access. Periodic review of parking and
access issues is important in assessing the needs of the community. Consequently, the report
below includes discussion on the current state of parking, recent and upcoming changes in the
Parking Management program, residential parking issues, emerging technology, and other
changes. The report concludes with possible policy questions for Council’s discussion and
direction that can serve as a basis for an update of the upcoming Parking and Access Plan.
DISCUSSION
The City of San Luis Obispo oversees parking on public streets, in surface lots and parking
structures. Additionally, the City regulates and oversees private parking areas for developmental
standards to reduce neighborhood conflicts between land use areas and area residents. The
parking standards for development projects was recently updated as part of the City’s zoning
ordinance.
In 2014, Walker Parking Consultants completed and organizational assessment of the City’s
Parking services Division and summed up their conclusions as follow:
The City of San Luis Obispo’s Parking Services Division is an exemplary public parking
operation. Within municipal parking operations, the Division is a leader in parking
organizational and management best practices. We base this conclusion on our experiences
analyzing municipal parking departments across the Country and what we have learned over
the course of our analysis of the Division:
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• The Division’s comprehensive approach to parking management;
• A strong and active focus on customer service;
• Positive feedback from engaged and knowledgeable stakeholders;
• Competent and motivated staff members; and
• A financially responsible and solvent operation.
There were also short and long-term recommendations from that Study. A summary of the
recommendations and their status is below:
Short-term
1. Continue institutional investments Ongoing
2. Create Assistant Parking Manager Completed
3. Reclassify Administrative Assistants Completed
4. Adjust meter hours to reflect nighttime Future
5. Use revenue for Active Demand Management of Parking
system; including use of improved parking access and revenue
controls system
In Progress
6. Establish metrics for improved management Future
7. Determine need for Palm/Nipomo Completed
Long-term
1. Procure enhanced parking access system for structures In progress
2. Establish metrics based on improved system Future
3. Utilize demand-based pricing Future
4. Consider comprehensive dashboard reporting system Future
Currently, the City manages 272 spaces in the Railroad Square area and over 2,600 spaces in the
downtown. The City’s Parking Services Division is guided by several plans and policies. The
most significant of these is the 2011 Parking and Access Plan. This plan addresses parking issues
throughout the City and provides policy and programs for parking and access purposes. This
document works in coordination with others such as:
• Circulation Element
• Short Range Transit Plan
• Bicycle Transportation Plan
• Land Use Element
• Zoning Code
• Municipal Code
• Community Design Guidelines
• Vehicle Codes.
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The Parking and Access Plan’s last update occurred in 2011 with future updates deferred until
other important projects such as the LUCE and Zoning Code updates were completed. It is now
appropriate to update the Parking and Access Plan to address new provisions established in
various City documents such as the Zoning Code (2018), Downtown Concept Plan (2017),
Circulation Element (2014) and Climate Action Plan (2012). Currently, $100,000 has been set
aside in FY 2017-18 carryover funds to begin the update to the Plan. Staff anticipates moving
forward with an RFP for these services in early 2019 and processing the update at the same time
the Active Transportation Plan is updated.
Additionally, significant new emerging technologies and services such as Transportation
Network Companies (i.e. Uber, Lyft), autonomous vehicles, electric vehicles and shared service
applications will all influence access, mobility and parking needs for the City in the future. A
revised Parking and Access Management Plan will be necessary to coordinate these issues and
secure long-term sustainability for the City and Downtown area. This study session will present
various issues for Council’s consideration and seek input on topics that should be reviewed in the
Plan update.
A summary of key dates in the history of the Parking program is noted below:
1. First meters installed 1948
2. Establishment of Parking Fund 1976
3. Establishment of first Residential Parking District 1979
4. First Parking Management Study 1987
5. Opening of 842 Palm parking structure 1988
6. Opening of 871 Marsh parking structure 1990
7. Parking and Management Plan updated 1990
8. Residential Parking Zones added 1990s, 2000s, 2010s
9. Downtown Parking and Access plan 1997
10. Marsh structure expansion 2002
11. Opening of 919 Palm structure 2006
12. Closing of surface lots for development 2000s-2010s
13. Access and Parking Management Plan 2011
14. Parking Organization Assessment 2014
15. Council confirmation of Palm-Nipomo structure 2016
16. Implementation of License Plate recognition 2018
17. Implementation of Parking Access system 2018
BACKGROUND
The Current State of parking
Public parking has been organized in the City of San Luis Obispo since 1947 when parking
meters were first introduced to manage parking in the city and provide shared parking in the
downtown area.
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However, a specific enterprise fund for parking was not established until 1976. Before this,
parking-related activities were accounted for as a General Fund expenditure like police, fire or
street maintenance. During this time, any parking-related revenues were incorporated into the
General Fund. Enterprise funds are used to account for services that are similar to private sector
activities where the intent is to finance or recover the cost of providing services primarily
through user charges.
Each enterprise fund is a separate and distinct accounting entity, and as such, the operations of
each fund are accounted for within a separate set of self-balancing accounts that comprise its
assets, liabilities, fund equity, revenues and expenses. This means that the financial condition
and results from operations can be uniquely determined for each enterprise fund.1
Parking Guiding Principles
As discussed above, the Parking and Access Management Plan establishes vehicle parking
policies and programs utilized throughout the City with a primary focus on downtown parking
management. The current Plan has the following objectives:
1. Support the commercial core as a viable economic and cultural center while preserving
its historic character.
2. Support the goals of the Conceptual Physical Plan for the City’s Center.
3. Provide parking in the commercial core for visitors and employees.
4. Reduce the demand for employee parking through various programs such as carpooling,
vanpools, transit subsidies, and bicycle and pedestrian systems development.
5. Support the transportation strategy presented in the General Plan Circulation Element.
6. Support the residential component of mixed-use development downtown as presented in
the Land Use Element.
7. Carry out the actions described in the Access & Parking Management Plan within budget
constraints and be consistent with Financial Plan goals and policies that are updated
every two years.
8. Neighborhood Wellness - The City will create residential parking districts when needed
to manage parking and maintain the quality of life in residential areas.
The City’s Parking Manager is responsible for interpreting and implementing the provisions of
the Plan. The Parking Manager works with the Chamber of Commerce, Downtown SLO,
Residents for Quality Neighborhoods (RQN), and other resident and stakeholder groups as well
as the public to implement the plan and coordinate daily parking programs.
1 Some enterprise funds are mandated by Proposition 218, such as water, sewer and solid waste. Parking however, is
not a property related fee and therefore, not subject to Proposition 218.
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Recent Changes to the Parking Management Program
As mentioned previously, the City manages 272 spaces in the Railroad Square area and over
2,600 in the downtown. Lots and structures are managed 365 except major holidays. Significant
upgrades and efforts are underway to modernize the parking operations which include;
1. The City Council approved a multi-year rate increase plan for hourly and monthly
parking to stabilize parking revenues for the foreseeable future. The initial modifications
were implemented in January 2018 with periodic increases that continue through July 20202.
The approved increases will provide funding for future structures, increased and upgraded
meters, deferred maintenance in the parking structures as well as continued improvements
using wayfinding and other technologies available to enhance the parking experience.
2. Installation and use of License Plate Recognition (LPR) systems to assist in enforcement,
data collection and officer efficiencies. This project went live in summer 2018 and is now in
the final stages of implementation. Technically the systems are working very well and after a
warning period the system is now being used for enforcement. Feedback from officers
indicate a general feeling that citation numbers have not significantly increased (likely due to
the advanced notification program) and that the system performs as intend. Occupancy
studies have not yet been completed with the new system.
Figure 1 - License Plate Recognition System
3. Replacement and upgrade of Parking Access and Revenue Control System (PARCS) in
the three existing parking structures in downtown. This project is a significant reinvestment
in the operating equipment of the parking structures. It replaces the antiquated system that
was initially installed in the early 2000’s.
2 Parking Structure rate increases approved by the City Council in July 2017, increased the hourly rate in the
structures on the following schedule: January 1, 2018 from $1.00 to 1.25 per hour, and effective July 1, 2020 from
$1.25 to $1.50 per hour. The first hour is still free at each of the structures.
______________________________________
1
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The new system will allow multiple forms of payment with increased pay-on-foot locations,
enhanced data collection and the ability to provide live parking availability data through
mobile applications. The system also allows for collection of payments in the overnight
period that are currently not possible under the manned gate system. The project is currently
under construction and anticipated to be fully operational in late November.
Figure 2 - PARC’s – Pay On Foot Machine at 919 Palm Structure
4. The installation of EV charging stations in two of the public structures is in process. This
will include the installation of up to 33 publicly available charging stations, and 10 charging
stations for City fleet vehicles. Installation of the EV stations in the Marsh Street Structure
has begun. Installation of EV station in the 919 Palm structure will follow as a Phase II
project later this year or early 2019.
5. Parking Services and City Administration are working on developing an MOU with the
County and a private developer to investigate a joint venture for the construction of a new
parking structure located east of Santa Rosa along Higuera Street to meet the future needs of
new development projects, provide additional public parking and accommodate County
office expansions. While still in the initial stages of discussion the project may ultimately be
managed by the City through the Parking Division with shared costs by each entity.
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6. The Palm Nipomo structure is continuing with the next step being the final project
approval and then design phase leading to construction. In January 2016 Council directed
staff to move forward with final environmental review and design for the Palm-Nipomo
project with an objective of achieving 400 or more spaces. On July 7, 2018 the Council
certified the Final environmental impact report (FEIR) for the project along with the adjacent
SLO Rep Theater.
Figure 3: Proposed site layout of the parking structure with the
SLO Repertory Theatre and office/commercial space
The project will construct up to 400 parking spaces on the corner of Palm and Nipomo Street.
The consultant team is now tasked with developing a design consistent with the approved
FEIR and process that through the City for discretionary approvals. A contract for this work
as well as for final construction design will be brought forward for Council approval in late
2018.
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The consultant for the project has provided a projected schedule for moving forward that
includes City process and approval through June of 2019, final design and construction
documents through January of 2020 and bidding and construction by April of 2020.
Construction would be anticipated to last 12-18 months.
7. Recent Zoning Code Changes. LUCE policy calls for a gradual move toward reduced use
of private cars and trucks, with a goal of a 50 percent travel mode shift to biking, walking,
and use of transit and other shared services. The Climate Action Plan establishes a
framework through immediate and future actions to substantially reduce greenhouse gas
emissions. Encouraging and accommodating use of electric vehicles are a key means to
reduce emissions since transportation sector is the largest generator of emissions.
Thus, efforts for the Zoning Regulations Update have focused on the parking regulations
that: 1) generally reduce the amount of parking required for new development, 2) encourage
shared parking, 3) require and promote increased parking for bicycles, and 4) require
facilities for electric vehicle parking/recharging equipment. As directed at the Council study
session, the parking requirements have been adjusted to be more consistent with the Institute
of Transportation Engineers (ITE) standards and rely on a project specific parking study for a
parking reduction instead of the six possible scenarios under the current Zoning Regulations
for parking reductions. This will result in more specific information and better decision
making by determining the actual impacts of a parking reduction based on the unique
circumstances of a particular project.
Parking Services, Revenues and Expenses
Parking revenues are comprised of a variety of sources including service and use charges, fines
& forfeitures, parking in-lieu fees and others. Table 1 and Figure 1 show FY 2017-18 Parking
Fund revenues. Attachment 1 includes the FY 2017-18 Parking Services Annual Report that
details out many of the statistics of the Parking Enterprise Fund. The following summarizes
some key issues discussed in the report.
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Parking Services consists of approximately 23 full time equivalent staff members with many of
the booth attendants being part time positions.
For FY 2017-18 Parking Fund revenues were in excess of $5.5 million. Annual revenues can
vary depending upon issues such as the amount of in-lieu fees collected, weather, rate changes
and construction activities.
Parking Revenue Source Amount %
Meters 1,775,860$ 32.03%
Structures 1,484,631$ 26.78%
Long-Term 863,916$ 15.58%
Fines 620,665$ 11.19%
Leases 480,222$ 8.66%
Investment and Property 168,044$ 3.03%
In-Lieu Fees 149,215$ 2.69%
Other 2,172$ 0.04%
5,544,725$
As reflected above, on street parking meters on City streets and parking lots are the Fund’s largest
revenue source, generating about $1.78 million annually accounting for almost one third of total
parking revenue. Hourly parking fees at the three parking structures generates about $1.5 million
annually. Long-term revenues of $864,000 for use of 10 Hour Meters and monthly parking passes
at the structures, along with Fines and Forfeitures at $621,000, comprise the top four sources of
Parking Fund revenue. These four sources account for 85% of total Parking Fund revenues.
Figure 4 – Current Parking Services Staffing
Figure 5 – FY 2017-18 Parking Revenues &
Chart
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Operating expenses of the Fund were just under $3 million for FY 2017-18 with a capital
projects expenditure of approximately $2.4 million (including depreciation). Any revenues more
than expenditures are currently allocated to working capital
Figure 6 – FY 2017-18 Parking Expenses & Chart
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Residential Permit Parking Districts – Neighborhood Wellness
There are currently ten residential permit parking districts (RPPD) administered by the City. The
Figure 7– Residential Permit Districts
first district – Alta Vista was established in 1979 to address impacts of student and employee
parking near Cal Poly.
Figure 8 – Residential Parking District Statistics
Overall, the City annually manages over 1,600 residential parking permits that cover more than
800 households.
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Some issues have emerged in considering current parking issues in the residential areas.
First, as seen in Figure 8. The existing RPPD’s have a variety of operating and enforcement
hours. This situation has developed over time and is a result of the City’s flexibility in its
enacting ordinance that allows each district to choose and customize hours and days of parking
limitations that address concerns. The varied hours, however, do result in more difficult
enforcement and confusion among residents and visitors. Staff has discussed this issue with some
residents in RPPD’s. While many understand the difficulties of the nonuniform restrictions, some
residents wish to maintain their set periods since they were enacted to address specific issues in
each area.
Second, in 2017, Cal Poly implemented a new policy that freshman students would not be issued
parking passes at the University and were instructed not to bring vehicles to campus. Freshmen
are housed at the University and as such can be regulated regarding parking permit issuance.
This policy is supported by the City in that it reduces the vehicles brought to the area. In
addition, currently, all students receive bus fares that are paid by the University for use on SLO
Transit3 and there are other transportation options available to reduce the need for personal
vehicles.
One side effect of this policy has been a general perception that more vehicles are being parked
within the surrounding neighborhoods near Cal Poly where permit restrictions are not in place.
The most recent permit district change (Ferrini expansion in 2018) appeared to be partially a
result of this. Currently, it is unknown if the issue will persist or if subsequent classes of students
will bring fewer vehicles to the city. The University draft Master Plan also envisions potential
expansion of this program to include second year students.
Additionally, as surface lots have been removed on campus and on campus parking restrictions
have been put in place, there has been a noticeable trend of Cal Poly students who park near bus
stops that provide a short quick trip to campus. It appears that parking restrictions on campus are
having unintended impacts in surrounding neighborhoods and near certain transit stops.
Finally, there has been discussion regarding the need for the City to take a more proactive role in
establishing or initiating new residential parking permit districts. The current program primarily
requires that the neighborhood residents themselves develop a grass roots effort to investigate,
survey, promote, and then vote for a district to be formed in their area.
Emerging Issues and Technologies.
Earlier this year, the International Parking Institute (IPI) released a report on a recent survey that
asked its members about issues facing parking professionals and organizations. This document
(Attachment B) outlines the significant changes currently facing many municipalities and
agencies that conduct parking management
3 Cal Poly provides an annual subsidy to Transit to pay for this program.
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Figure 9 – Source: 2018 Emerging Trends in Parking Survey – International
Parking Institute
The summary of the survey reflects the new paradigm that cities face:
“The way we get around has shifted with the introduction of Uber, Lyft, convenient
bike networks, and effective and pleasant mass-transit systems; transportation
methods are interconnected and interdependent; and mobility choice is a big
priority with a growing preference against driving alone.”
Emerging technologies are creating new lifestyles that put transportation and mobility center-
stage. This has resulted in parking trends focused on curb management strategies,
inventory/utilization space counts technology and alternative commuting/parking methods. (see
Figure 10).
These issues are not new to San Luis Obispo and some work is already underway regarding these
trends. Examples of this include: 1) we have already begun to address curbside management with
the recent proposals to address Uber/Lyft operations in the Downtown, 2) the PARCS system in
the structures is being upgraded with new payment options and pushing information to mobile
apps; 3) New EV charging stations in two public structures; and 4) shared use of the structures
include allowing overnight residential parking.
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Figure 10 – Source: 2018 Emerging Trends in Parking Survey – International
Parking Institute
As we move forward into the update of the Access and Parking Management Plan these issues
will need to be considered. There are, however, other municipalities that have confronted these
same issues. One city that shares similar visions in circulation and mode share goals to San Luis
Obispo is the City of Boulder, Colorado. Boulder recently updated its Parking Access
Management and Parking Strategy (Attachment C) to address many of the issues we now face. It
provides a detailed discussion of their efforts to identify emerging issues and refocus on
strategies to achieve their modal split objectives. This document is included as it appears to
represent an example of Best Practices in the field of parking management, particularly as it
relates to technology and other trends.
Access and Parking Management Plan Update
The following are brief discussions on some of major issues and trends that are anticipated to be
addressed in our update to the Access and Parking Management Plan.
Curbside Management Strategies
Issues regarding curbside management are not new in the determination of effective and
successful parking and access programs. However, the changing technology is establishing new
expectations and demands well beyond historical time restrictions and location. Emerging issues
such as curbside sharing, dynamic use zones, valet needs, and charging programs are now
requiring new ways of doing business to address customer and user demands.
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The National Association of City Transportation Officials (NACTO) is developing a Blueprint
for Autonomous Urbanism that:
” …lays the groundwork and sets a vision for city streets in the automated future that are
designed for people. It is rooted in our cities’ goals for building safe, accessible and
equitable communities with strong economies and vibrant communities. The ideas and vision
presented in the Blueprint adapt NACTO’s foundational principles to the rapidly changing
technology and transportation realm.”
Similar to the IPI survey results, NACTO has identified that curbside management will play a
critical role of the future particularly in limited downtown areas such as San Luis Obispo.
Curbside flex zones may play many roles in the future, from public space to loading zones that
can change at any time over the course of the year, week or even day.
Specific to San Luis Obispo, the Downtown Concept Plan (2017) proposes to change the
characteristics of many streets in the downtown area including Marsh, Higuera and Monter ey
Streets. The figure below shows one such conceptual cross section and the potential changes that
may be necessary.
Figure 11 – Downtown Concept Plan – Conceptual Street B layout
To implement the configuration noted above, or other designs which modify the existing use
areas of downtown streets, issues such as displaced parking will need to be addressed. Flexible
curbside management strategies may help alleviate some of the effects of these types of
conversion and should be analyzed in the Access and Parking Management Plan update.
Autonomous and Connected Vehicles
Much attention has been given to “autonomous vehicles (AV)” and speculation on their
disruptive impact on the transportation and parking industry. Large cities are investing in
potential integration of AV infrastructure to prepare for the eventual use of these mobility
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devices in the public realm. Substantial private investment and research is being made in AV
technology, and there is work in the regulatory, legal and transportation spheres to advance
future AV use. How and when this all transpires remains to be seen and the potential effect on
parking is debatable at this point in time.
Industry experts are concerned that if AV are ultimately used to provide additional trips without
an increased in shared trips, there could be an increase in overall trips and congestion. In other
words, if our future includes one-way trips with vehicles being dispatched home or to another
location during non-use, then Vehicle Miles Traveled (VMT) could increase in our roadway
system to the detriment of increased mobility and access. How parking programs, facilities and
transportation systems make best use of these technologies needs much investigation prior to
making significant investments or policy changes based upon supposition.
Finally, there are varied opinions on when AV ownership and use would begin to significantly
shift our driving patterns from human-operation to AV. At a recent conference of experts, it was
noted the range could be from 10-40 years, depending on a number of factors and variables.
These include perception of safety, cost, driver adaptation, social marketing, and other factors.
The New Data Driven Environment
Data and information exchange have become big business in the private and public realms and
transportation and parking is no exception. The City is spending significant funding to upgrade
the PARC’s equipment at our structures to allow the public greater access to available parking
supply, payment options and pricing strategies. The new parking management plan will need to
consider data-driven management practices and continuous real-time monitoring and reporting to
improve efficiencies and share information effectively and fairly. Potential revenue models
should be considered that help pay for and make data collections systems sustainable.
Shared Travel Options
As discussed in the curbside management section above integration, expansion and regulation of
shared access options is a future contingency that will need to be addressed. Major TNC’s such
as Uber and Lyft are indirectly and directly leading policy discussions that have local impacts.
However, there are currently fifteen (15) California Transportation Commission (CTC) approved
TNC’s that can operate in California. This does not mean that all fifteen would find a need to
operate within San Luis Obispo, but it does demonstrate that the City has little control and
influence of which TNC’s could launch services in the City or the number of businesses that may
need coordination in the public realm. Sharing the limited public spaces within the right of way
is only one issue that needs to be addressed in creating successful shared travel options for
vehicles or other devices such as bike shares. The recent proposal to bring shared, electric
scooters to San Luis Obispo and then other devices will need similar consideration to become an
effective option for success in out modal access and circulation inventory.
Other options for shared travel that has the potential to reduce overall parking demand is through
programs or incentives to encourage a variety of private and public transportation. For example,
the City could encourage sustainable transportation such as Pedi-cabs to stimulate their use and
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thus reduce the need for short Downtown car trips. Last Spring the City Manager along with
Council Members and Downtown SLO representatives attended a Main Street conference in
Walnut Creek. Walnut Creek uses parking fund revenues to enhance their downtown trolley
services and thus reduce parking demand from hotel and other areas. The Parking Fund currently
funds the Downtown Access Pass program that allows downtown employees to ride the SLO
Transit system for free. Staff is currently exploring expanded use of the Parking Fund to increase
parking reduction demand programs and will be bringing initial recommendations forward for
Council consideration at Mid-year.
The Changing State of Parking
San Luis Obispo has long had a robust Circulation Element that strives to achieve high
alternative mode percentages and integrate the various transportation functions, parking being an
integral piece of the system to achieve things such as trip reduction goals as well as accessibility
to homes, places of employment and shopping. But the role of parking in the emerging areas of
transportation is evolving.
Fortunately, the City is in a very good position to help in this evolution since parking has been
integrated with many of the other transportation modes already and is currently managed through
the Transportation Division of Public Works. Parking and access are already evolving from
primarily coordinating the movement and storage of large bulky vehicles to a systemwide,
holistic approach that achieves balanced options that provide choice, diversity and accessibility
for all users in lieu of today’s limited options for travel.
STUDY SESSION QUESTIONS FOR COUNCIL
The intent of the study session is to present a status of parking programs, projects, and issues,
seek community input on areas that require attention and policy updates. Lastly, it provides the
Council with an opportunity to provide direction for immediate issues as well as what should be
included in the scope of work for the Parking and Access Management Plan update.
There are numerous issues that have been discussed in this report however here are some of the
larger issues that Council may want to provide direction on related to parking.
1. Residential Districts/Neighborhood Wellness
The City has heard both pros and cons to changing the process for establishing and managing
residential parking districts. Changing current practice will have operational and financial issues
that would need to be addressed.
a. Should the city more proactively establish Residential Parking Districts or maintain the
current community-initiated process?
b. Should the city work with residents to consider consistent hours and days on existing and
future Residential Permit Parking Districts?
c. If substantial new districts are envisioned, what expectations exist for level of
enforcement particularly recognizing that there are current limitations on Police and
SNAP personnel for overnight enforcement?
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2. Downtown Investment and Success
a. Implementing the conceptual strategies contained in the Downtown Concept Plan will
significantly affect parking supply, how curb space is utilized and many of the current
beliefs in how people need to access the downtown area. Should a detailed
implementation plan be developed to assist in the discussion and process in educating
stakeholders of potential changes that could impact how things currently work?
b. Should other funding mechanisms be considered to help achieve parking and access goals
of downtown in lie of increased rates, fees and fines? (see question 5)
c. Should the city engage the downtown business sector with a dynamic program for
providing different trip choices for downtown employees to increase available supply for
shoppers and visitors? Do we encourage change or require the changes necessary to meet
our modal split objectives and achieve parking efficiencies?
3. Palm Nipomo Parking Structure
a. Are there any significant issues with the proposed Palm/Nipomo structure design concept
at this time? If Council wants a change in fundamental design issues, now is the time
before significant funds are spent on design and project schematics.
In January 2016 Council received a presentation on the need for the Palm-Nipomo Parking
Structure and unanimously voted to move forward with final design and environmental review.
As part of that project and due to limitations in location, adjacent existing uses, the proposed
SLO Rep Theater and other issues, the Palm-Nipomo Parking Structure is proposed as a
conventionally designed structure. EV Charging stations, IT technologies and advance PARC’s
equipment will be incorporated into the project.
Due to constraints, adaptive reuse has not been incorporated into the design because it would
lead to increased building height or significant loss of parking spaces. Adaptive reuse would
likely require all floors to be increased to ten foot minimum and overall lead to a much taller
building (10-15 feet). It is time to complete final design an approval of the project and
modifying the design will significantly delay the project. As directed by Council staff is moving
forward with the design of a conventional parking structure with the intent of looking at
adaptive reuse inside of Palm-Nipomo, adaptive reuse of the oldest parking structure (Palm 1)
would make for better investments in the long term.
4. Emerging Technologies and Investments
a. How aggressive should the City be in pursuing new forms of access and mobility? Are
there any technologies, strategies, or changes Council has seen effective in other cities to
enhance the City’s parking management program that we may not have considered?
b. Should the city aggressively invest in Bike/Share, CarShare, shuttles, a heavily marketed
program to increase pedestrian trips downtown from adjoining neighborhoods, and other
strategies? What about parking demand strategies like promoting trolleys and pedi-cabs?
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5. Sustainable Fiscal Policies – Much of the funding for parking services is currently based
upon user charges and fines and forfeitures. While it is always an option to increase rates and
fines to achieve objective rates that are set too high can be a deterrent to accessing areas of
the downtown, may push vehicles into the surrounding neighborhoods or make residential
districts too costly.
a. Should the City investigate additional financial participation in the ways we fund our
parking programs? These may include special assessment areas, private-public
participation, improvement districts or expanded in-lieu areas.
b. Do you feel the current and proposed rates can accomplish the parking management goals
of the City or do we need to look at other ways to spread the costs?
CONCURRENCES
Staff has notified several stakeholder and resident groups about the study session and solicited
feedback on issues included in this report. These included Residents for Quality Neighborhoods,
Downtown Association and Save Our Downtown, Their issues are summarized in separate
Council correspondence.
ENVIRONMENTAL REVIEW
This study session is not considered a project under the State of California Environmental
Quality Act. Individual projects and the future update to the Parking and Access Management
Plan may require individual environmental review if required under CEQA.
FISCAL IMPACT
There is no fiscal impact pertaining to the action before Council. All existing programs described
are currently funded in the Parking Enterprise Fund. Any direction provided by Council will
include follow up action items with appropriate fiscal impacts.
ALTERNATIVES
The study session does not require formal action by the Council. The issues addressed in t he
report are under the discretion of the Council and as such, the Council is at liberty to offer
alternatives to staff’s direction or proposed actions. The Council could so choose as a group, or
as individuals, to not comment on the proposed issue and instead provide feedback by other
mechanisms such as the update to the Parking and Access Management plan or in the context of
the FY 2019-21 Financial Plan process.
Attachments:
a - 2017-18 Parking Annual Report
b - International Parking Institute - Emerging Trends In Parking Survey 2018
c - City Of Boulder, Colorado - Access Management and Parking Strategy Final Report
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City of San Luis Obispo
Parking Services
FY 2017-18 ANNUAL REPORT
Prepared by: Parking Services, a Division of
the Public Works Department
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Moving Forward While Looking Back
As we move forward into a new fiscal year with new staff members, we are excited
to continue to provide the same high-level of services to residents, businesses, and
visitors alike.
New Parking Manager
On behalf of the Parking Services Division I am proud to present our Annual Report
for July 2017 to June 2018. I am honored to be a member of the Parking Services
team and to lead us into a new era. The Parking Services Division has not
experienced significant staff or management turnover in the past few years and this
has led to a solid team that is performing well and making significant progress on
many key projects and programs.
This report provides insight into the many different services we provide and touches
on some of the areas this division is headed. The staff of Parking Services has
achieved many goals during the past fiscal year. These accomplishments would
not have been possible without the committed and knowledgeable staff in the
Parking Services Division.
The main focus of this division is customer service while providing a parking
program that meets the needs of the City and its citizens. The staff strives to go
above and beyond the expectations of the businesses, tourists, students,
employees and the city leaders.
Parking Services has strived to improve the level and quality of service provided,
and this will continue under my leadership. I have years of experience running
successful parking programs in other cities, and my experience in conjunction with
the knowledge and experience of the staff, makes this an exciting time for our
division. We look forward to continuing to provide parking services to this great city
for many years to come.
Scott Lee
Parking Services Manager
June 2016 - present
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Table of C ontents
PAGE
GENERAL INFORMATION .......................................................................... 6
ACCOMPLISHMENTS & PARTNERSHIPS ................................................. 9
PARKING INVENTORY .............................................................................. 11
HOURS OF OPERATION ........................................................................... 13
PARKING RATES ...................................................................................... 14
RESIDENTIAL PARKING PERMIT DISTRICTS ........................................ 17
SALES & SERVICES ................................................................................. 18
PARKING ENFORCEMENT & ADJUDICATION ....................................... 19
PARKING STRUCTURE USE .................................................................... 20
PARKING/TRANSPORTATION DEMAND MANAGEMENT ..................... 21
PARKING ENTERPRISE FUND ................................................................. 22
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General I nformation
This annual parking report is presented to identify key accomplishments,
partnerships, issues, challenges, achievements, and a general “state of parking”
and access in the City of San Luis Obispo. It is the goal of this report to meet these
objectives and to provide clarity about the Parking Services Division and the
Parking Enterprise Fund. The time frame for this report is for the fiscal year
beginning July 1, 2017 until June 30, 2018.
Mission Statement
Working in partnership with the community, we
are committed to providing equitable and high-
quality parking services to the citizens, visitors,
and businesses in the City of San Luis Obispo
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Parking Guiding Principles
• Support the commercial core as a viable economic and cultural center while
preserving its historic character.
• Support the goals of the Conceptual Physical Plan for the City’s Center.
• Provide parking in the commercial core for visitors and employees.
• Reduce the demand for employee parking through various programs such as
carpooling, vanpools, transit subsidies, and bicycle and pedestrian systems
development.
• Support the transportation strategy presented in the General Plan Circulation
Element.
• Support the residential component of mixed-use development downtown as
presented in the Land Use Element.
• Carry out the actions described in the Access & Parking Management Plan within
budget constraints and be consistent with Financial Plan goals and policies that
are updated every two years.
• Neighborhood Wellness
Background
Public parking has been organized in the City of San Luis Obispo since 1947 when
parking meters were first introduced as a method of managing parking in the city.
The main management and enforcement of parking was moved from the Police
Department to Public Works in the 1980s. Since that time the management,
operation, and substantial enforcement of parking has been its own division.
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City of San Luis Obispo Organization Chart
Parking Services Organization Chart
Citizens
Mayor & City Council
City Manager
Public Works
Transportation
Parking Services
Parking
Services
Manager
Parking
Services
Supervisor
Parking
Coordinator
Booth Attendants
(12.0 FTE)
Parking
Enforcement
Officers
(4.0 FTE)
Parking Meter
Repair Worker
Supervising
Administrative
Assistant
Administrative
Assistants
(2.0 FTE)
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Accomplishments &
Partnerships
2017-18 Accomplishments
1. Operationalized new Parking Enforcement Management System (PEMS)
2. Implemented the new License Plate Recognition (LPR) system to assist in
enforcement and data collection which will link with new PEMS system.
3. Completed Structural Assessment and Maintenance Report for all three public
parking structures.
4. Began installation of the new Parking Access and Revenue Control System
(PARCS) in all three parking structures
5. Authored new City policy on the use of License Plate Recognition systems and
scheduled adoption for July 2018.
6. Entered into new service contracts for Structure and Lot cleaning and
maintenance.
7. Worked with PG&E to coordinate new EV charging stations in two parking
structures to meet public needs and City fleet needs. Preliminary designs are
complete, and installations projected for winter 2018/19.
8. Implemented new rate structure in January 2018 to assist in funding services and
future Palm – Nipomo Parking Structure.
9. Completed environmental review of the Palm-Nipomo Parking structure project
and scheduled review by Council in July 2018.
10. Opened new Park and Ride lot at Calle Joaquin and US 101.
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Partnerships
Parking Services Division actively partners with local groups to improve the level
of service for the community.
Parking
Services
San Luis
Obispo
Downtown
Association
San Luis
Obispo
Chamber of
Commerce
Resident
Groups
The Railroad
Square
Parking
Group
The
Neighbor-
hood
Services
Team
Cal Poly San
Luis Obispo
University
Police
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Parking Inventory
Parking Services manages three different types of public parking in the City: on-
street parking, surface lot parking, and structure parking. On-street parking is
comprised of all metered parking spaces in the downtown area. Surface lot parking
is comprised of all metered and permitted parking spaces available to the public.
Structure parking is comprised of all the parking spaces (excluding handicap
spaces).
There is an additional surface parking lot on Mill Street; however, the lot is
comprised of only six parking spaces and is currently leased for use by the
adjacent commercial property. The following breakdown of the number of parking
spaces by type of parking does not include the six additional parking spaces.
Total Number of Parking Spaces
Type of Parking No. of Spaces
Parking Lots 545
On-Street Parking 1,147
Parking Structures 1,177
Totals:2,869
19%
40%
41%
Parking Lots
On-Street
Parking
Structure
Parking
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Surface Lot Parking
Location Address Meters Disabled Permit Reserved M/C Total
Lot 4 860 Pacific 47 5 6 5 8 71
Lot 8 990 Palm 2 38 7 1 48
Lot 9 680 Monterey 19 2 4 25
Lot 10 640 Higuera 27 2 29
Lot 14 630 Palm 77 2 79
Lot 15 699 Monterey 12 12
Old Library 888 Morro 9 9
R/R Square 11 249 7 5 272
Totals:182 24 293 32 14 545
Structure Parking
Downtown Area On-Street Parking
Location Opened Cost (in Millions) No. of Spaces
842 Palm 1988 $3.7 415
871 Marsh 1990 $4.4 252
Expansion 2002 $7.6 268
919 Palm 2006 $12.2 242
Totals: $27.9 1,177
Street Qty. Street Qty.
Broad 59 Morro 93
Carmel 11 Nipomo 57
Chorro 47 Osos 73
Garden 48 Pacific 67
Higuera 196 Palm 137
Marsh 160 Pismo 39
Mill 28 Santa Rosa 12
Monterey 73 Toro 47
Subtotal: 622 Subtotal: 525
Totals: 1,147
Note: construction in the
Downtown has displaced
certain parking spaces during
FY 2017-18 that are not
reflected in this table.
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Hours of Operation
Parking Services hours of operation vary depending on the type of service. In 2012
operating hours for parking lots, parking structures, and on-street parking were
expanded to include Sunday afternoons from 1:00 pm to 6:00 pm.
Parking Lots and On Street Meters
9:00 am to 6:00 pm Monday to Saturday
1:00 pm to 6:00 pm Sunday
Parking Structures
• 842 Palm & 919 Palm 8:00 am to 7:00 pm Monday to Wednesday
8:00 am to 11:00 pm Thursday to Saturday
1:00 pm to 6:00 pm Sunday
• 871 Marsh 8:00 am to 10:00 pm Monday to Wednesday
8:00 am to 11:00 pm Thursday to Saturday
1:00 pm to 6:00 pm Sunday
Parking Services Office
8:00 am to 5:00 pm Monday to Friday
871 Marsh St. Parking Structure
919 Palm St. Parking Structure
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Parking Rates
Parking rates are used to manage different types of parking. As an example, on-
street metered parking in the “Super Core” is $1.75 per hour for a limit of 2 hours
to accommodate short-term parking in high demand areas. Whereas on-street
metered parking outside of the downtown core is $1.00 per hour for a limit of 10
hours to accommodate long-term parking.
Metered Lots and On-Street Rates
• 2-Hour Super Core Meters $1.75 an hour
• 2-Hour Core Meters $1.50 an hour
• 10-Hour Non-Core Meters $1.00 an hour
• Motorcycle Meters $0.60 an hour
Structure Rates
• 1st 60 Minutes Free
• $1.25 an Hour or fraction thereof
• $12.50 Daily Maximum
• Proxcard Rates
– All Structures $85 a month, $255 a quarter
Permit Rates
• 10-Hour Meter $60 a month
• 10-Hour Downtown Residential $10 a year
• Commercial Loading Zone $60 a year
• Residential Parking District Permit $10 a year
• Replacement of Residential Parking
District Permit $15 for the 1st, $25 thereafter
Other Parking Rates
• Construction Meter Bag $20 per meter per day
• Meter Cash Key Deposit $25 (Refundable)
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• Validation Stickers/Tokens 40% discount off hourly rate in
each of the parking structures
• Parking In-Lieu Fees New Construction
$19,588 per space
$9,794 per space community
partners
Occupancy Change
$4,897 per space
$2,448 per space community
partners
Fees shown are FY 2017-18
only. Fees will be increased
in July 2018 based upon
CPI.
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Downtown Parking Rate Zone Map (Updated Fall 2018)
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Residential Parking Permit Districts
Beginning in the late 1970s Parking Services began implementing and enforcing
residential permit parking districts. The City has 10 Residential Parking Permit
Districts (RPPDs) that were formed at the request of residents living at these
locations. The newest RPPD was approved by City Council July, 17th 2018 and will
take effect September, 15th 2018.
Residential Permit Parking Districts
Residential Parking Citation Statistics
In 2017-18, the two most common citations issued in residential areas of the City
were:
a. No Residential Permit violations (Failure to display a valid
residential parking permit)
b. Overtime Parking violations (Parking beyond the posted time
limit)
District Date of
Origin
No. of
Households
No. of
Permits
Linear
Feet
Days of
Enforcement Hours of Enforcement
Alta Vista Aug. 1979 175 350 16,612 Mon – Fri 2am-5pm & 2am-10pm
South
Tassajara Oct. 1994 56 112 4,777 Mon – Sun 24hrs & 10pm-6am
Parkview Apr. 1996 144 288 10,860 Mon – Sun 12am-7am
Monterey
Heights May 1997 162 324 15,480 Mon – Fri 2am-10pm
College
Highlands Feb. 2001 143 286 10,960 Mon – Sun 10pm-10am
Ferrini June 2003 20 40 1,100 Mon – Sun 12am-5pm
Murray May 2004 32 64 1,519 Mon – Fri 8am-5pm
Palomar-
Serrano June 2005 43 86 1,925 Mon – Sun 10pm-6am
Mission
Orchard May 2014 67 134 1,054 Mon – Fri 6am-6pm
Anholm
Area July 2018 47 94 2,800 Mon – Sun 8am-3am
Totals: 889 1,778 67,087
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Sales & Services
Parking Services administrative staff interacts with customers, residents, and
visitors through front counter transactions, phone calls, mail, and email.
Administrative staff also process administrative parking citation reviews, direct
individuals to appropriate city departments, and distribute parking information;
which are not reflected in the summary of transactions. Though the information
shown is sale transactions, providing superior customer service is the main focus.
Several other city offices will accept parking fine payments, but the majority of
transactions occur at the Parking Services office.
The cash register transactions shown below include all the transactions completed
by the various city offices. The breakdown of the transactions shown below, by
type, include some of the more popular transactions that take place at the Parking
Services office front counter.
Cash Register Transactions
There were 10,117 cash register transactions in 2017-18
Transactions by Type
• 10-Hour Monthly Meter Permits 5,744
• Residential Parking Permit Districts 1,485
• Parking Validations / Tokens (100 Hours each) 151
• 10-Hour Residential Parking Permits 54
• Cash Keys sold 24
• Commercial Loading Zone Permits 94
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Parking Enforcement &
Adjudication
Parking Enforcement Officers perform multiple service roles for the City. In addition
to enforcing parking violations, they act as ambassadors providing directions,
finding lost vehicles, assisting the City’s Police Department, and providing
suggestions and locations of various downtown businesses.
Philosophy of Parking Enforcement
An effective Parking Services program must protect and fairly apportion parking
spaces for all legitimate users by ensuring that those who violate parking
regulations are: held accountable for doing so, encouraged to comply with existing
regulations, and discouraged from parking over the time limit.
Parking fines for non-payment of citations must be high enough to discourage
violators from being habitual offenders, but not so punitive as to create an
economic disincentive to park downtown.
Parking Enforcement Officers Statistics
• Number of parking citations issued 23,686
Parking Adjudication (§ 40215 California Vehicle Code)
• Administrative Reviews 1,732
% Dismissed 36%
• Administrative Hearings 115
% Dismissed 36%
Parking Fine Collection Rate
• 2017-18 Collection Rate 92% (est.)
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Parking Structure Use
Parking structure usage differs based on several variables including: day of week,
time of year, and by individual parking structure. The 1st hour of structure parking
is free as a way to incentivize downtown guests to use the structures as opposed
to on the street or in the parking lots. Monitoring parking structure usage helps
Parking Services staff track parking trends over the life of the structures, identify
peak parking demand times, and account for revenue generated by the structures.
842 Palm Street (415 public parking spaces)
• Annual revenue of daily parkers $335,935
• Average Daily Revenue $ 920
• Average Occupancy Rate * 52%
• Daily average of cars parked * 588
• Annual cars parked * 195,783
871 Marsh Street (520 public parking spaces)
• Annual revenue of daily parkers $752,058
• Average Daily Revenue $2,060
• Average Occupancy Rate * 65%
• Daily average of cars parked * 1,458
• Annual cars parked * 478,975
919 Palm Street (192 public parking spaces)
• Annual revenue of daily parkers $389,184
• Average Daily Revenue $1,066
• Average Occupancy Rate * 84%
• Daily average of cars parked * 617
• Annual cars parked * 203,914
* Based on FY 16-17 data
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Parking/Transportation Demand
Management
Parking and transportation demand management is part of a city-wide effort to
alleviate the negative impacts of vehicle use by supporting and increasing
residents’ access to alternative forms of transportation. For more information on
parking and transportation demand management initiatives, please see the City’s
2011 Access and Parking Management Plan.
Parking Demand Reduction Initiatives
a. Funding of the SLO Transit Downtown Access (bus) Pass
b. City’s Trip Reduction Program
c. Providing reserved spaces at no charge for carpools at 842 Palm
Street Structure
d. Ride-on dedicated spaces with free 10-hour meter permits
e. One car share vehicle parking space in City Hall lot
f. Bicycle Coalition rental exchange at 860 Pacific Street
g. Downtown commuter bicycle locker parking program
h. Reserved juror parking in 842 Palm Street Structure
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Parking Enterprise Fund
In 1975, the Parking Enterprise Fund was established to account for parking
revenues and expenditures separate from the General Fund.
Parking Enterprise Fund Fiscal Policies
a. Under generally accepted accounting principles, different types of
governmental activities are accounted for differently depending on their
purpose.
b. Each fund exists as a separate financing entity from other funds, with its
own revenue sources, expenditures, and fund equity.
c. The City will set fees and rates at levels which fully cover the total direct
and indirect costs including: operations, capital outlay, and debt service.
d. The City will review and adjust enterprise fees and rate structures as
required to ensure that they remain appropriate and equitable.
e. All parking fine revenues will be allocated to the Parking Enterprise
Fund, except for those collected by the Police Department (who are
funded by the General Fund) in implementing neighborhood wellness
programs.
f. The City will maintain a minimum fund balance of at least 20% of
operating expenditures in the Parking Enterprise Fund.
g. The City will set enterprise fund rates at levels needed to fully cover debt
service requirements, as well as, operations, maintenance,
administration, and capital investment costs. The ability to afford new
debt for enterprise operations will be evaluated as an integral part of the
City’s rate review and setting process.
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Parking Revenues
Parking Services is funded through multiple revenue sources with over one-quarter
from on-street metered parking alone. The only major difference from 2015-16
fiscal year is the significant increase in long-term parking revenue. Long-term
parking revenue includes: cash keys, 10-hour meter permits, Proxcard,
commercial loading zone permits, etc.
Parking Services oversees 15,000 sq. ft. of retail space, 5,300 sq. ft. of office
space, and three residential parcels located in the downtown area. The retail space
and office space contribute to the Parking Fund as part of the Leases revenue
type.
Operating Revenue Sources
Parking Revenue Source Amount %
Meters 1,775,860$ 32.03%
Structures 1,484,631$ 26.78%
Long-Term 863,916$ 15.58%
Fines 620,665$ 11.19%
Leases 480,222$ 8.66%
Investment and Property 168,044$ 3.03%
In-Lieu Fees 149,215$ 2.69%
Other 2,172$ 0.04%
5,544,725$ 100%
32%
27%
15%
11%
9%
3%3%0%Meters
Structures
Long-Term
Fines
Leases
Investment and Property
In-Lieu Fees
Other
Annual parking in-
lieu fees can vary
widely depending
upon development
in the downtown
area.
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Item 1
Parking Expenses
Staffing costs, including benefits, accounts for 41% of the total Operating
Programs expenses for the 2017-18 fiscal year. Much of this cost is staffing of the
booth attendants for the parking structures. Contract services include such items
as: security, coin collection, elevator maintenance, citation processing, and
document management; accounts for 21% of the total Operating Programs
expenses. Contract Services is down from the previous fiscal year as a result of
lot closures.
Operating Expense Sources
Operating Programs Amount %
Salaries and benefits 1,225,364$ 40.98%
Supplies and Maintenance 271,775$ 9.09%
Contract services 638,177$ 21.34%
General Government 622,189$ 20.81%
Credit Card Fee 75,190$ 2.51%
One Time Only 157,644$ 5.27%
2,990,339$ 100%
Capital Programs Amount %
Depreciation 571,435$ 24.17%
Capital Improvement Projects 825,000$ 34.90%
Debt Service 967,372$ 40.92%
2,363,807$ 100%
“One Time” only
costs reflect the
Parking Fund’s
investment in the
new City enterprise
software system
known as Motion.
41%
9%
21%
21%
3%5%
Salaries and benefits
Supplies and
Maintenance
Contract services
General Government
Credit Card Fee
One Time Only
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If you have any further questions and or inquirers regarding the
Parking Services Division, please email us at parkinginfo@slocity.org
or call 805-781-7230
Thank you for reading our Annual Report!
Packet Pg. 50
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2018 Emerging Trends in Parking
Report on a survey conducted by
the International Parking Institute
It’s All About the Curb
New lifestyles put transportation and mobility
center-stage, shining a spotlight on curb management,
alternative commuting methods, and parking.
parking.org
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It’s All About the Curb
New lifestyles put transportation and mobility center-stage, shining a spotlight on curb
management, alternative commuting methods, and parking.
The future everyone’s been talking about is closer
than ever: The way we get around has shifted
with the introduction of Uber, Lyft, convenient bike
networks, and effective and pleasant mass-transit
systems; transportation methods are interconnected
and interdependent; and mobility choice is a big
priority with a growing preference against driving
alone. According to the International Parking
Institute’s 2018 Emerging Trends in Parking Survey,
professionals in parking, transportation, and mobility
are making huge shifts in their organizations’
priorities and the way they do business.
First bit of proof? Survey respondents—62 percent of them—point to the explosive growth of ride-hailing/transportation network
companies (TNCs). Other factors behind the shift, say respondents (many of whom work in municipalities and universities),
include the desire for more livable, walkable communities (45 percent), increased traffic (42 percent), changes in commuting
choices (35 percent), urban density (31 percent), and mindfulness of environmentally friendly choices and sustainability.
Transformative Technology
Parking technology remains a game-changer and
tech-based trends include the prevalence of mobile
apps that provide real-time information on pricing
and availability (nearly 50 percent), technologies
that improve access control and payment (47
percent), and demand for guidance systems that
help drivers find parking (43 percent). Many of
these technology improvements dovetail with the
parking industry’s drive to make parking more
environmentally sustainable by reducing the
time it takes to find parking, decreasing fuel
consumption and fuel emissions.
About 40 percent of respondents report noticing increased collaboration between parking, transportation, and decision-
makers as the landscape shifts. That’s a trend the CEO of the International Parking Institute, Shawn Conrad, CAE, welcomes.
“Successful projects depend on collaboration,” Conrad says. “Too often, challenges that could have been avoided by tapping
into parking expertise early in the planning process create headaches down the road.”
What Societal Changes are Influencing Parking?
62%
44%
41%
35%
31%
25%
18%
Increased use of ride-hailing/
transportation network
companies (Uber/Lyft)
Desire for more livable,
walkable communities
Increase traffic congestion
Change in ways people
commute to work
Increased density in urban areas
Focus on the environment
and sustainability
Autonomous vehicles
Need for curb management strategies
Prevalence of mobile applications
Technologies to improve accesscontrol and payment
Demand for guidance systems to helpdrivers find parking
Collaboration between parking,
transportation, and decision makers
Need to accommodate electricvehicles/charging stations
Demand for electronic(cashless) payment
Anticipating the effects of
autonomous vehicles
Pressure to maintain existing parkingrevenues in the face of mobilityand transportation options
Shared use of parking facilitiesby different users 25%
26%
30%
38%
39%
41%
43%
46%
49%
52%
Top Emerging Trends in Parking
What societal changes are influencing parking?
What are the Top Emerging Trends in Parking
Note: Percentages for certain charts may add up to more than 100 percent because multiple
responses were accepted.
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Item 1
More than Parking Cars
The survey reinforces the hugely transformed role of parking
professionals into transportation experts. They are coordinating
car-sharing services (48 percent), operating shuttles (45
percent), and collecting data to influence service and policies
(44 percent). Many work to improve access for cyclists through
bicycle improvements (43 percent), bike-sharing (40 percent),
and bike/transit integration (36 percent); they’re also
focused on easy access for pedestrians (35 percent).
Even industry titles have changed; nearly 44 percent note
their department/entity names encompass both parking and
transportation, and 32 percent of departments have been renamed
in the past five years. Nearly 60 percent identify as “parking, transportation,
and mobility professionals” and more than 50 percent agree that perceptions of
their profession have improved during the past five years, as more planners,
architects, and decision-makers realize the importance of parking expertise at
the earliest stages of a project. Some 69 percent would encourage students to
pursue parking-industry careers.
Encourage a
career in parking
Would not
recommend a
career in parking
Not sure
20%
69%11%
Bike/transit integration 35%
Marketing programs 36%
Pedestrian
improvements
36%
Shared parking29%
Guaranteed ride home
22%
Commuter trip
reduction programs
19%
Bike-sharing 39%
Alternative
work schedules25%
Specialevents 43%
Bicycleimprovement 43%
Traffic calming25%
Car-sharing 48%
Transit improvements34%
Park and ride32%
Access restrictions/
management22%
Shuttle services 45%
Data collection 44%
Security improvements33%
Accommodating
TNCs* (Uber/Lyft)29%
25%
18%
How Parking Professionals self-identity:
60%
14%
14%
6%
5%
Parking, transportation,
and mobility professional
Parking and
transportation professional
Mobility professional
Parking professional
Transportation professional
Would you recommend a career in parking?
Beyond Parking Cars:
Parking is about
Transportation
and Mobility
Which of the following best describes the parking
professional of the future?
Have perceptions of parking changed
in the past five years?
1%
Perceptions
have improved
Perceptions are
about the same
Perceptions
are worse
No opinion
13%
32%
54%
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Item 1
Paving the Way for Autonomous Vehicles
Nearly all respondents agree that autonomous vehicles
will have a significant effect on parking, transportation,
and mobility, but opinions vary from there. About
60 percent believe autonomous vehicles will create
congestion at pick-up and drop-off areas, but 45 percent
feel consumer reluctance will delay the cars’ widespread
adoption. About 20 percent predict many more
autonomous vehicles on the road within five years;
others feel that change may take 10 (30 percent),
20 (17 percent), or 15 years (16 percent). More
than 60 percent predict parking lots and garages will
become transportation hubs where people park cars
before selecting other transportation options for the
last leg of their trip.
All that said, respondents are skeptical that driving
and the need for parking will disappear in the near
future. As evidence, 60 percent say many business
owners believe most of their customers drive and
require close parking access.
“Making parking frictionless so people can more
easily get where they want to go is our goal,”
explains Conrad. “We can’t predict the future, but
parking, transportation, and mobility professionals
are uniquely positioned to navigate the road ahead.”
Beyond 30 years
30 years
Already having
an impact
15 years
20 years
5 years
10 years 30%
20%
17%
16%
5%
4%
4%
How soon will autonomous vehicles have a
significant effect on parking, transportation,
and mobility?
What will be the effect of autonomous vehicles?
Top Five Answers:
What challenges are you facing regarding mobility options as an alternative to parking?
Top Seven Answers:
1. Congestion created at pick up/drop off areas. 63%
2. Parking lots and garages will become transportation
hubs where people park and then have a selection
of other options for the last leg of their trips.
57%
3. Consumer reluctance to use autonomous vehicles
will slow their widespread adoption. 45%
4. Reduced parking revenue. 38%
5. Vehicle manufacturers will produce much more
fuel-efficient and lower-cost traditional-vehicle
options so consumers will choose to continue to drive.
34%
1. Many businesses are convinced the majority of their customers drive and need
proximate parking access. 60%
2. We still need places to load/unload people and goods and can’t simply remove all parking/access. 56%
3. Our customers do not want options; they drive their own vehicles. 48%
4. Parking is the funding source and any alternatives offered reduce parking revenue. 41%
5. Our operation has no funding for alternatives. 30%
6. We are required to use a portion of our revenue to fund alternatives but our customers are not
fully using the alternatives we bring to our operation. 27%
7. We are being overrun by ride-share or other mobility services because we do not yet have policies
or infrastructures in place to manage them or we are unable to require them to comply with policies. 26%
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Item 1
Common Parking Problems and Mistakes
What is the most common parking operations, design, or management problem or mistake
you’ve encountered that you feel could have been avoided had competent parking expertise
been used?
This question was open-ended. The most common responses fell into a few broad categories:
p Not having a parking expert involved in the beginning of project.
p Not looking at transportation, parking, and mobility as one large connected picture.
p Not fully considering the experience of the customer/driver.
p Not keeping up with rapidly changing advances in parking technology.
p Not using proper signage for wayfinding.
p Not utilizing data to make decisions.
p Not investing in professional development and training of staff.
A sampling of responses:
“Underestimating the strategic importance of parking, mobility, and access management.”
“The improper use of technology either in the design phase, or as an enhancement.”
“Ingress and egress issues that cause conflicts with pedestrians or other vehicles.”
“Underestimating the need to have parking rates keep pace with costs and capital maintenance requirement.”
“Offering free parking in a high-demand situation.”
“Number, placement, slope, and visibility of garage entrances.”
“Planning multiple large events in the same area with conflicting times.”
“Poor directional/wayfinding signage within a facility.”
“Taking a one-size-fits-all approach to parking planning and design.”
“Not utilizing mixed use parking.”
“Short-term build mentality.”
“Focusing on form at the expense of function.”
“Poor planning of entrances and exits.”
“Use of too many reserved parking spaces.”
“Not realizing that parking is part of economic development.”
“Failure to plan for the future.”
“Poor lighting.”
4
Most commonly
cited mistake?
“Not having a parking
expert involved at
the beginning of
a project.”
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parking.org
Survey Methodology
The 2018 Emerging Trends in Parking Survey was distributed to members of the International Parking
Institute, the world’s largest association of parking, transportation, and mobility professionals. The vast
majority of respondents were parking and transportation managers, consultants, department heads,
owners and operators who are involved in the planning, design, management, and operations of parking
for municipalities, colleges and universities, airports, hospitals, retail, sports and entertainment venues,
and corporations. Results were tabulated and analyzed by the Washington, D.C.-based Market Research
Bureau, an independent consultancy. Questions on the survey related to accessible parking and disabled
placard abuse will be reported separately by the IPI-led Accessible Parking Coalition.
This report may be downloaded at parking.org
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ACCESS MANAGEMENT
& PARKING STRATEGY
Packet Pg. 57
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Throughout this report, this icon indicates an area of text that contains
additional resources. Simply click on the underlined text, and you will be
redirected to a web page or a PDF document outside of this report.
Table of Contents
3 . . . . . . . . . .Acknowledgments
4 . . . . . . . . . .Introduction to AMPS
6 . . . . . . . . . .Guiding Principles
10 . . . . . . . . .Public Involvement
14 . . . . . . . . .“AMPS in Action” Case Studies
28 . . . . . . . . .Performance Measures
30 . . . . . . . . .Accomplishments & Ongoing Work
34 . . . . . . . . .Preparing for the Future
Acknowledgments
City Council
Planning Board
Transportation Advisory Board
Environmental Advisory Board
Boulder Junction Access District
Parking Commission
Boulder Junction Access District
Demand Management Commission
Downtown Management Commission
University Hill Commercial Area
Management Commission
Consultant Support
Kimley-Horn and
Associates, Inc
Vanessa Solesbee
Dennis Burns
Brett Wood
Chuck Reedstrom
City Staff
MANAGEMENT AND ADMINISTRATION
Jane S . Brautigam—City Manager
Mary Ann Weideman—Deputy City Manager
Sandra Llanes—Senior Assistant City Attorney, City
Attorney’s Office
COMMUNITY VITALITY
Molly Winter—Executive Director, Community Vitality
Melissa Yates—Manager, Access and Parking,
Community Vitality
Donna Jobert—Financial Manager, Community Vitality
Lane Landrith—Business Assistance and Special Events
Coordinator, Community Vitality
Sarah Wiebenson—Coordinator, University Hill
Redevelopment
Nathan Wolfe—Supervisor, Parking Enforcement,
Community Vitality
TRANSPORTATION
Michael Gardner-Sweeney—Director of Public Works
for Transportation
Kathleen Bracke—GO Boulder Manager, Transportation
Chris Hagelin—Senior Transportation Planner,
Transportation
Randall Rutsch—Senior Transportation Planner,
Transportation
David “DK” Kemp—Senior Transportation Planner
Jean Sanson—Senior Transportation Planner
Bill Cowern—Principal Traffic Engineer
HOUSING AND SUSTAINABILITY
Jay Sugnet—Senior Planner, Boulder Division of Housing
Karl Guiler—Senior Planner, Planning, Housing and
Sustainability
Elaine McLaughlin—Senior Planner, Planning, Housing and
Sustainability
COMMUNICATIONS
Ben Irwin—Manager, Communications
Lisa Smith—Specialist, Communications
Deanna Kamhi—Specialist, Communications
Fox Tuttle Hernandez,
RRC
Bill Fox
Carlos Hernandez
UrbanTrans North America
Matthew Kaufmann
Ulla Hester
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Introduction
to AMPS
The City of Boulder is a recognized national
leader in providing a variety of options for
access, parking, and transportation. To support
community’s social, economic, and environmental
goals, Boulder acknowledges the need to
continuously innovate and prepare for a world
that is rapidly changing. In early 2014, an
interdepartmental team of city staff began a new
project called the Access Management and Parking
Strategy or AMPS.
The purpose of AMPS was to develop a process
through which city staff, leadership, boards/
commissions, and the community at large could work
collaboratively to continuously improve Boulder’s approach
to multimodal access and parking management across
the city and within special districts, such as Downtown
Boulder, Boulder Junction, and University Hill . AMPS was
designed as a “lens” through which existing and future
access management policies and practices could be
evaluated to develop context-appropriate strategies, using
the existing districts as models for other transitioning areas
within the community . The work done as part of AMPS also
acknowledged numerous past, current, and anticipated
planning efforts and initiatives, such as the Sustainability
Framework, the Boulder Valley Comprehensive Plan
Update, the Transportation Master Plan, the Economic
Sustainability Strategy, and the Climate Commitment .
PROJECT GOALS
Define priorities and develop overarching policies,
tailored programs, and tools to address citywide access
management in a way that supports the community’s
social, economic, and environmental sustainability
principles .
Create a state-of-the-art parking management and
multimodal access system for Boulder that works well
for people of all ages and abilities .
Evolve and continuously improve citywide access and
parking management strategies and programs tailored
to address the unique character and needs of the
different parts of Boulder .
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PEARL DIAGONAL9
3
/
B
R
O
A
DW
A
Y
US
3
628th ARAPAHOE
FOOTHILLSAccess Management
& Parking Strategy
Boulder is a national leader in providing options
for access, parking and transportation. To support
the community's social, economic and environmental
goals, it is important to create customized solutions
that meet the unique access goals of Boulder’s
diverse districts, residential and commercial.
AMPS: A balanced approach to enhancing
access to existing districts and the rest of the
community by increasing travel options — biking,
busing, walking and driving — for residents,
commuters, visitors and all who enjoy Boulder.
Longmont
LafayetteNederland
Golden
Denver
mixed use
neighbor-
hoods
• North Boulder
historic
commercial
• Downtown
• University Hill
residential
• Mixed Use
• Multi-Family
• Single-Family
office park
• East Arapahoe
• Flatirons Park
transit
oriented
development
• Boulder Junction
Depot Square
suburban
commercial
• 29th Street
• Table Mesa
• BaseMar
Lyons
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
minute
neighborhood
15Mixed-income, mixed-use
neighborhoods where residents
can easily walk or bicycle to meet
all basic daily, non-work needs.
bouldercolorado.gov/amps
PROVIDE FOR ALL TRANSPORTATION MODES: Support a balance
of all modes of access for a safe transportation system . Modes
include pedestrian, bicycle, transit, and multiple forms of motorized
vehicles—with pedestrians at the center .
CUSTOMIZE TOOLS BY AREA: Use a toolbox with a variety of
programs, policies, and initiatives customized for the unique needs
and character of Boulder’s diverse neighborhoods, both residential
and commercial .
SUPPORT A DIVERSITY OF PEOPLE: Address the transportation
needs of different people at all ages, stages of life, and mobility
levels—residents, employees, employers, seniors, business owners,
students, and visitors .
SEEK SOLUTIONS WITH CO-BENEFITS: Find common ground and
address trade offs between community character, economic vitality,
and community well-being . Seek elegant solutions—those that
achieve multiple objectives and have co-benefits .
PLAN FOR THE PRESENT AND FUTURE: While focusing on
today’s needs, develop solutions that address future demographic,
economic, travel, and community design needs . Align with Boulder ’s
master plans, including the updated Transportation Master Plan, the
Climate Commitment and Sustainability Framework .
CULTIVATE PARTNERSHIPS: Be open to collaboration and public-
private partnerships to achieve desired outcomes .
GUIDING PRINCIPLES
At the outset of the project, a interdepartmental
AMPS Steering Committee was created that
included representation from Community Vitality,
Transportation, Planning, and Communications.
The first task of this Steering Committee was to
define a set of high-level Guiding Principles to
serve as a shared vision for the work done as part
of AMPS.
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PHASE 1 (2014)
ORGANIZATION &
BASELINE ASSESSMENT
• Project initiation
• Creation of interdepartmental AMPS Steering Committee
• Background research and planning
• Development of Guiding Principles
• Identification of Focus Areas
• Best practices and peer/aspirational city research
PHASE 2 (2015)
PUBLIC INVOLVEMENT & TARGETED
PROJECT WORK BY FOCUS AREA
• Multiple rounds of internal and external
stakeholder outreach
• Staff workshops
• Board/Commission presentations and meetings
• Project open houses
• City Council feedback and direction
• Online engagement opportunities
• Focus Area project work
(See pg. 30 for a complete list of accomplishments)
PHASE 3 (2016–2017+)
PROCESS DEFINITION &
MEASURING PROGRESS
• Documentation of AMPS Process and
Operational Path (See pg. 15)
• Identification of Performance Measures (See pg. 28)
• Presentation of AMPS Final Report to community
stakeholders and city leadership
• Development of online AMPS Resource Library
BEST PRACTICES SUMMARY
The first activity for the AMPS
Steering Committee was to
develop a visionary set of Guiding
Principles, define Key Focus
Areas, and conduct best practice
research .
FOCUS AREAS: Tools for Change
Using the Guiding Principles as a framework, the Steering Committee developed the
following six Focus Areas (Tools for Change) to organize the work done as part of
AMPS . 1DISTRICT MANAGEMENT: Address the enhancement and
evolution of existing access and parking districts, and the
consideration of new districts . Develop a toolkit of policies,
implementation strategies, and operational procedures to assist in the
creation of new districts .
2ON- AND OFF-STREET PARKING: Investigate potential
policy developments and changes regarding the use of
on-street public parking, such as parking for people with disabilities,
loading zones, time restrictions, car share parking, electric vehicle
(EV) parking, neighborhood permit parking, and the re-purposing
of parking spaces for bike parking or parklets . Include all surface
lots and parking garages that are city-owned and managed in the
off-street analysis .
3TRANSPORTATION DEMAND MANAGEMENT (TDM): Explore
existing and new/future programs, policies, and incentives to
increase travel options and reduce single-occupant vehicle trips .
4TECHNOLOGY AND INNOVATION: Assess parking garage
access equipment and internal systems used for permitting
and reporting . Ensure systems are compatible and can “talk” to
one another to streamline processes and create efficiencies . Explore
customer-focused technology to make parking more convenient,
lessen unnecessary driving, promote mobility as a service (i .e .,
Transportation Network Companies [TNCs]), and provide integrated
access to multimodal options . Prepare for autonomous vehicles, in
both policy and physical infrastructure .
5CODE REQUIREMENTS: Explore needed updates to the land use
code for citywide parking requirements and identify longer-term
code changes to ensure responsiveness to changes in travel behavior,
such as increased bicycle and transit use .
6PARKING PRICING: Review and analyze the relationship of
parking pricing and enforcement fees through researching
comparable cities . Analyze options, including variable and
performance-based pricing and graduated fines . Refocus parking
management activities to emphasize proactive education, customer
service, and regulation to better serve the community .
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technologyparking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
AMPS Best Practices and
Peer City document
ACCESS MANAGEMENT & PARKING STRATEGY
9
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INTERNAL GROUPS
• City staff
• Boards & Commissions
• City Council
AMPS STAKEHOLDER GROUPS
EXTERNAL GROUPS
• District-specific residents
• Boulder residents
• Regional transportation partners (i .e ., RTD)
• Commuting workforce
• University of Colorado Boulder (CU Boulder)
• Visitors and tourists
• Neighborhood advisory groups (i .e ., HOAs,
property owners, and business leaders)
Designing a comprehensive and inclusive public
involvement process was a foundational element
of AMPS. The public involvement philosophy
for AMPS was grounded in two of the Guiding
Principles: Support a Diversity of People and
Customize Tools by Area. It was recognized early
in the AMPS project that public involvement efforts
would need to be phased, tailored, and flexible so
that both internal and external stakeholder groups
would have multiple opportunities to learn, digest,
respond to, and assimilate information provided by
city staff and consultant teams.
A variety of public involvement strategies and activities have been
employed to inform, educate, and engage the community . Outreach
activities for the AMPS project were conducted from Summer 2014 through
Spring 2017 .
Public Involvement
IN-PERSON STRATEGIES
Presentations to Community Groups
• Downtown Boulder Partnership
• Downtown Boulder Business
Improvement District
• The Hill Boulder
• Frasier Meadows
• Senior Services Advisory Board
• Better Boulder
• Code for America
• Commercial Brokers of Boulder
• Boulder Tomorrow
• PLAN Boulder County
• Open Boulder
Presentations to Boards and Commissions
• Boulder Junction Access District
• Downtown Management Commission
• Planning Board
• Joint Board Workshops
• University Hill Commercial Area
Management Commission
• Transportation Advisory Board
• Environmental Advisory Board
“Coffee Talks”
• Gunbarrel
• Spruce Confections NoBo
• The Cup
• Buchanan’s
• Ozo on Pearl
Focus Groups
Project- and/or topic-specific focus groups were utilized on an as-needed basis .
Focus groups were typically organized and led by city staff or consultant partners
and included community stakeholders . For example, members of the development
community provided feedback on proposed parking code changes and on the TDM
toolkit for private development .
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ONLINE & DIGITAL MEDIA STRATEGIES
Inspire Boulder
This online engagement platform has covered multiple
topics, including TDM, curb management, and general access
management questions, through surveys and polls .
Social Media
Twitter: @BoulderParking @Bouldergobldr #BoulderAMPS
Commonplace
Commonplace is a geographically-based online engagement tool that
allows participants to make a comment or “rate a place” using a map of
Boulder County . Boulder hosted the first installation of Commonplace
in the United States .
WHAT WE LEARNED
2014-2015 COFFEE TALKS
How are community members getting around Boulder?
• Driving, walking, and biking
How could the way you access Boulder be improved?
• More off-street parking
• Bike parking, lockers, and
bike sharing offerings
• Cheaper parking
• More options that
connect to other regional
destinations
What do you think is the future of transportation in Boulder?
• Better bus and rail
• More bicycle use
• Education on alternatives
2015-2016 COMMONPLACE DIGITAL ENGAGEMENT TOOL
• First use of this tool in the U .S .• 1,001 unique visitors
Top 5 themes across all comments:
1 . Crosswalk enhancements
2 . Bike lanes
3 . Sidewalk improvements
4 . Traffic calming/pedestrian safety
5 . Streetscaping
2016 OCTOBER COMPLETE STREETS WORKSHOP
2016 SEPTEMBER VALUE OF PARKING WORKSHOP
Open Houses
Four total Open Houses, three specific to AMPS and one joint Open House
with the Civic Area Project, were held .
Walking Audit with the Youth Opportunities Advisory Board (YOAB)
The project team partnered with the Boulder Walks program to gather youth input
and perspectives on the current walking environment and opportunities for improving
multimodal access to the University Hill Commercial Area . Students documented
feedback during the Walking Audit through the Commonplace digital engagement
tool .
Connecting People and Places Series: Value of Parking and Complete Streets
The Value of Parking Workshop (with downtown and mobility management leaders from
Ann Arbor, MI; Seattle, WA; San Francisco, CA; and Aspen and Denver, CO) was the first in
a series of practitioner panels as part of the theme “Connecting People and Places .” This
was followed in Fall 2016 by Boulder’s Complete Streets panel, which included staff and
elected officials from Austin, TX; Cambridge, MA; Davis, CA; and Denver, CO .
• Increase mobility and options; don’t focus
on fewer trips, focus instead on different
modes .
• Create viable long-term programs .
• Support economic vitality and access for all
(social equity) .
• Understand that a “multimodal” city
includes parking too .
• Improve relationship management; inform
“peer champions” .
• Think in terms of human scale, not car
scale—we’re in the business of placemaking .
• Increase compliance and efficiency of
enforcement; reduce complaints .
• Consider demographic shifts and trends .
• Consider demographic shifts and trends
(i .e ., no car and “car-lite” households,
seniors, youth, and lower-income
individuals without good transit access) .
• Ensure greatest and best use for the
public right-of-way .
• Actively follow new technology (i .e .,
autonomous vehicles and micro-transit) .
• Emphasize economic vitality initiatives .
• Promote voluntary compliance over
enforcement .
• Improve access to “real” regional and
local transit options
Common Themes:
• Design places for people, not cars .
• Leverage pricing to encourage use of
all modes .
• Manage congestion .
• Support climate commitment
and TMP .
• Develop a shared vision with
stakeholders .
• Make data-driven decisions .
• Increase mobility and options .
• Be mindful of social equity issues .
• Hold parking pricing workshop .
• Establish Public-Private partnerships .
Common Themes:
• Support climate commitment and
TMP .
• Develop shared vision with
stakeholders .
• Connect town and gown .
• Clearly define and communicate
the “value proposition” .
• Create one-stop-shop portal/
app; ease of use; communication;
customer service/experience .
• Tailor information for audiences;
offer solutions for individuals .
• Increased shared use/Public-
Private partnerships .
• Use data-driven decision-making .
ACCESS MANAGEMENT & PARKING STRATEGY
13
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Item 1
SUSTAINABILITY
FRAMEWORK
6EVALUATE
5IMPLEMENT
4INTEGRATE
3COMMUNICATE
2COLLABORATE
“Where we want to go”“How we’re going to get there”
OPERATIONAL PATH
IDENTIFY
Project type
Workload balance
Budget
Timing
COLLABORATE (INTERNAL)
Project management structure
Intra-/Interdepartmental partners
Consulting support
COMMUNICATE (EXTERNAL)
Public involvement
Key audiences
Tools
Public/media relations
Messaging
INTEGRATE
Incorporate feedback
Identify key issues
Develop recommendations
Coordinate with partners
Re-engage community
IMPLEMENT
Pilot
Ordinance revision
New program
Define/refine policy
EVALUATE
Document process and results
Performance measure review
Process improvement
1
2
3
4
5
6
1IDENTIFY
ACCESSMANAGEMENT
& PARKINGSTRATEGY
GUIDING PRINCIPLES
Customize tools by area
Provide transportation modes
Plan for the present and future
Cultivate partnerships
Seek solutions with co-benefits
Support a diversity of people
Plan for
the present
and future
Support
a diversity
of people
Provide
for all
transportation
modes
Seek
solutions with
co-benefits
Customize
tools
by area
Cultivate
partnerships
The AMPS project is a new
lens through which future
parking and multimodal access
projects will be approached .
As such, it is important to
illustrate how the AMPS vision
and Guiding Principles are put
into practice and tested through
a well-defined operational path .
Shown on the following page,
the operational path serves as
the guiding framework through
which future parking and access
management projects will be
approached today and in the
future .
This chapter features key
local case studies “AMPS in
Action,” organized by Guiding
Principle . The case studies each
highlight a different Focus Area .
They have been organized as
practical, and in many cases
replicable, illustrations of how
the AMPS Guiding Principles
have transitioned from vision to
planning to implementation .
AMPS in ACTION Case Studies
“”
AMPS IN ACTION
PROVIDE FOR ALL TRANSPORTATION MODES
Case Study (CS): Downtown Boulder
Tools for Change (TC):
CUSTOMIZE TOOLS BY AREA
CS: Boulder Junction Access District
TC:
SUPPORT A DIVERSITY OF PEOPLE
CS: University Hill
TC:
SEEK SOLUTIONS WITH CO-BENEFITS
CS: Chautauqua Area Management Plan (CAMP)
TC:
PLAN FOR THE PRESENT AND FUTURE
CS: East Arapahoe Transportation Plan
TC:
CULTIVATE PARTNERSHIPS
CS: d2d Pilot
TC:
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Item 1
PROVIDE FOR ALL TRANSPORTATION MODES
CASE STUDY: DOWNTOWN BOULDER
Introduction
Downtown Boulder is both the heart of the community and one of the city’s oldest
neighborhoods . Boulder has long been a progressive, forward-thinking community and
Downtown Boulder is the best example of the city’s innovative spirit in action . Historic
photographs show the evolution of passenger rail travel dating back to the 1800s; at
one point an estimated 16 railroad and streetcar lines snaked through the community .
Boulder’s first parking meters were installed in 1946 . Since that time, Downtown
Boulder has evolved into a nationally-recognized, multimodal access hub that supports
transit, bicyclists, and pedestrians, alongside vehicular parking . In the 1970’s the
downtown created a special property tax district, Central Area General Improvement
District (CAGID) that was created to fund, build and manage parking for the entire
downtown . In the intervening years CAGID constructed five parking garages that
accommodate both permit (employee) and short term (customer and visitor) parking .
This concept for shared parking became the foundation for the SUMP principles
– shared, unbundled, managed and paid – which are the hallmarks for Boulder’s
parking management . As Downtown Boulder grew and matured, the city’s parking
management philosophy paved the way for investment in other transportation
modes and enhanced public spaces . In 1977, the construction of the ionic Perl Street
pedestrian mall solidified Boulder’s commitment to designing the built environment for
people and the places they love, not just for the car .
Over the past decades, Downtown Boulder has served as the testing ground for
parking and access management policies, programs and technology . From creating
dedicated bike lanes and installing bike-sharing stations, piloting an employee bus pass
program that evidentially became the regional RTD Eco Pass and providing free Eco
Passes to all full time downtown employees, to supporting car share programs, “crazy
ideas” sparked and cultivated right in the heart of Downtown Boulder, have shaped
own residents and visitors travel to and around Boulder . These multi-modal strategies
are all in service of the city’s goal of promoting all transportation modes and reducing
the impacts of single occupant vehicle trips .
One example of how AMPS has continued to highlight Downtown Boulder as an
innovation hub is through the “Parking Cash Out” pilot with downtown businesses .
Parking Cash Out
Parking Cash Out is a financial incentive offered to employees to encourage the use of
commute modes other than driving alone, which both reduces parking demand and
helps ensure that company benefits are distributed equitably . Commuters can choose
to keep an employer-subsidized parking spot at their employment site or accept the
approximate cash equivalent of the cost of parking within that facility or system and
use an alternative transportation option . Essentially, parking cash out programs pay
employees to not drive alone to and park at work .
SolidFire, Boulder, CO
SolidFire is a Boulder-based company with 262 employees that builds cloud-based, all
flash storage systems for next-generation data centers . Located in Downtown Boulder,
within the CAGID, SolidFire was facing a shortage of available employee parking .
SolidFire developed its parking cash out program, ATIP (Alternative Transportation
Incentive Program), to encourage employees to commute via alternative transportation
modes, such as walking, biking, taking transit, or carpooling . The company now pays a set
amount per month to any employee who foregoes a monthly parking pass or reimburses
employees for occasional daily or hourly parking charges . Full-time employees are also
eligible to receive an RTD EcoPass, which is an unlimited- access annual transit pass .
Initially limited to full-time employees, ATIP was recently expanded to part-time employees .
Currently, 86 of SolidFire’s employees,
33 percent of its Boulder workforce,
participate in ATIP . The company
estimates that the net savings of this
program amounts to approximately
$17,000 per month . Employees enjoy
the program and SolidFire believes
it is beneficial in recruiting and
retaining employees .
Observations
• Parking Cash Out has resulted in
lower parking demand and single-
occupant vehicle travel rates .
• Implementation can be as simple or
elaborate as desired .
• Implementation and administration
costs tend to be low, and in some
cases the employer saves money .
• Designing a flexible program that
takes into account occasional
parking needs can result in higher
participation because it allows for
incremental change .
• Employees considered cash out
programs to be fair and both
employers and employees see
them as win/win solutions .
Public Involvement
KEY PLAYERS
• Downtown Boulder Partnership
• Downtown Business Improvement
District (BID)
• Downtown property and
business owners
• Boards/Commissions
TOOLS
• Focus group meetings
• Presentations to Boards/
Commissions
• Online engagement tools
(i .e ., Commonplace, InspireBoulder)
What’s in the Works?
• Pilot of Smarking, a data analytics
company, which connects on- and
off-street parking data points from
five different sources into one
comprehensive dashboard .
• Analysis of in-bound traffic and
identify sites for satellite/edge
parking (pilot/demonstration area
is ready) .
• Consideration for potential for
shared parking with developments
in the parking district .
• Comprehensive review of parking
pricing .
• Comprehensive review of the
existing Neighborhood Parking
Permit Program (NPP), including
stakeholder engagement and best
practice and peer/aspirational
community research .
Resources:
• AMPS website
“ This program is simple to use and a
great way to incentivize employees to
use alternate modes of transportation,
especially since there are not enough
parking spaces in Downtown Boulder” .
– Mia Sanchez-O’Dell, Global Total Compensation & Services Manager, SolidFire on Parking Cash Out Pilot
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ACCESS MANAGEMENT & PARKING STRATEGY
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Item 1
CUSTOMIZE TOOLS BY AREA
CASE STUDY: BOULDER JUNCTION ACCESS DISTRICT (BJAD)
Introduction
Boulder Junction (previously known as the Transit Village) is a 160-acre redevelopment
area that is being transformed into a mixed-use, pedestrian-oriented neighborhood
with regional transit connections and public spaces that will benefit the entire
community . Since the adoption of the Transit Village Area Plan (TVAP) in 2007,
Boulder, RTD, and private developers have begun implementing the vision outlined for
Boulder Junction .
To realize the goals of the TVAP and create a transit-oriented development, two
general improvement tax districts were created in 2010: a parking district and a TDM
district . They were named Boulder Junction Access General Improvement District-
Parking (BJAD-P) and Boulder Junction Access General Improvement District-
TDM (BJAD-TDM) . These two overlapping districts were based on the successful
Downtown Boulder parking district . In some sense, Boulder Junction has become the
city’s “proving grounds”, a culmination of lessons learned from innovative policies
and programs that were initially piloted in Downtown Boulder . These programs were
initially implemented in conjunction with zoning regulations for parking maximums (for
residential uses) to reduce single-occupant vehicle trips and promote transit and other
alternative modes .
BJAD-TDM provides funding for EcoPasses, car and bike share programs . BJAD-P
provides mechanisms to create parking that follow Boulder’s “SUMP” philosophy . To
purchase EcoPasses, BJAD-TDM uses residential and commercial property taxes and
payment-in-lieu-of-taxes (PILOT) fees that developers pay for the first two years after
they are issued a certificate of occupancy . BJAD-TDM also uses these taxes and fees to
provide discounted Boulder B-Cycle memberships and free carshare memberships for
all residents and employees of Boulder Junction .
Key Goals
• Create a lively and engaging place
with a diversity of uses, including
employment, retail, and arts and
entertainment, with housing that
serves a diversity of ages, incomes,
and ethnicities .
• Don’t overplan; allow a “charming
chaos” that exhibits a variety of building
sizes, styles, and densities .
• Offer both citywide and
neighborhood-scale public spaces .
• Attract and engage a broad spectrum
of the community, not just people who
live and work in the district or come to
access transit in the area .
• Emphasize and provide for alternative
energy, sustainability, walking, biking,
and possible car-free areas .
Observations
• Development at Depot Square
presented the opportunity to
construct a shared parking garage
for BJAD-P and the other Depot
Square uses, including the hotel, the
Depot, RTD, and the housing units .
The Depot Square parking garage is
now shared between five different
users through a condominium
association and BJAD-P has 100
spaces to manage . The goal is to
support the access needs of all
users within the district .
• With district-wide limitations on
parking for residential units (one
parking space per unit), Boulder
Junction may not be for everyone .
The district was developed with the
goal of prioritizing pedestrians first,
cyclists second, transit users third,
and automobile users fourth .
Staff & Consultant Collaboration
CITY OF BOULDER
• Community Vitality
• Transportation, Planning, Housing
& Sustainability
• Public Works
• City Attorney’s office
• Fire Department
C ONSULTANTS
• Fox Tuttle Hernandez, RRC
Public Involvement
KEY PLAYERS
• BJAD-P Commission
• BJAD-TDM Commission
• District property owners
• Private developers
• Depot Square owners’ association
• RTD
TO OLS
• Boards/Commission meeting
presentations
• Online engagement tools
(i .e ., Inspire Boulder)
• Open Houses
• Inside Boulder News
What’s in the Works?
• Develop the city-owned site at
30th and Pearl in the context of
affordable housing .
• Reimagine transit, including
the RTD “HOP” route along the
Pearl Street Corridor, particularly
between Downtown Boulder and
Boulder Junction .
• Collaborate with RTD to increase
transit service to Boulder Junction .
• Add other petitioning properties
into BJAD-TDM .
Resources:
• Transit Village Area Plan
• Boulder Junction website
• BJAD Commission website
• BJAD-P Map
• BJAD-TDM Map
Hyatt Place Boulder/Pearl Street boulderpearlstreet.place.hyatt.com
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Item 1
SUPPORT A DIVERSITY OF PEOPLE
CASE STUDY: UNIVERSITY HILL
Introduction
University Hill is a dynamic historic neighborhood adjacent to the main CU Boulder
campus . The Hill features an eclectic mix of housing, restaurants, shops, and
entertainment venues . As a parking district, similar in organization to Downtown
Boulder and Boulder Junction, planning for parking and access is a fundamental
part of promoting economic vitality on the Hill . The focus of AMPS for The Hill has
been on intentionally identifying and promoting connectivity for all modes, with
specific emphasis on reducing The Hill’s auto-oriented feel and making the area more
accessible and inviting for pedestrians and bicycles .
Four key access management and parking projects/concepts are currently underway
on The Hill, including:
• Ecopass Pilot
• Alleyway Project
• “Event Street”
• Potential New Garage & Hotel
Ecopass Pilot
In 2016, a Hill Employee EcoPass program was piloted to reduce employee parking
demand and expand multimodal access to The Hill . Pilot goals included:
• Increase connectivity between Downtown Boulder and The Hill, to both reduce
parking demand and address topographical challenges for pedestrians .
• Improve access to The Hill for lower income and/or service industry employees .
Alleyway Project
Boulder recently selected designer Russell + Mills Studios, whose work in Fort Collins,
CO has helped improve access to and the utilization of alley spaces . The Hill’s alleyway
beautification project seeks to:
• Create greater connectivity and make alleyways more inviting for pedestrians
and cyclists;
• Open up additional space for Hill businesses to interact with public spaces;
• Maintain access for delivery trucks; and
• Prioritize alleyway access in a balanced way that supports students, businesses,
residents, and visitors .
“Event Street”
The intersection of 13th Street and Pennsylvania Avenue is being
redesigned into an “event street”, to provide much-needed
community gathering space in The Hill Commercial Area and to
accommodate smaller community events, such as outdoor film
screenings and poetry readings . This project is funded by the
Community, Culture, and Safety sales tax adopted by Boulder voters
in 2014 . The event street will remain an active street with parking .
Potential New Garage and Hotel
Boulder is pursuing a public-private partnership with the local
development community to create a new hotel and conference
center, to be located at the intersection of University Avenue and
Broadway . The project will include 400 new hotel rooms, 1,500
sqft . of ballroom space, 30,000 sqft . of new retail and dining
space, and a 250-car public garage . The vision is for a truly shared-
use facility, all on one street, that could potentially house a transit
hub similar in scale to the BJAD’s, with amenities like a bus to the
Denver International Airport and B-cycle stations .
Observations
• Connectivity between Downtown
and The Hill is key, both to reduce
parking demand and address
topographical challenges .
• Access to the Hill needs to be
improved for lower income and/or
service industry employees .
• Alleyways present an opportunity
to activate underutilized space .
• Infrastructure and connectivity
improvements are essential for
creating people-oriented places .
Staff & Consultant Collaboration
CITY OF BOULDER
• Community Vitality
• City Attorney’s office
• Arts & Culture
• Zero Waste Boulder
• Transportation
CONSULTANTS
• Russel + Mills Studio
• RRC Associates
Public Involvement
KEY PLAYERS
• CU Boulder
• The Hill Boulder
• University Hill Commercial Area
Management Commission
• Hill property and business owners
TOOLS
• Design workshops
• Presentations and meetings to
boards, commissions, and other
neighborhood stakeholder groups
• Project website
What’s in the Works?
• Assess EcoPass pilot in 2017 .
• Implement Alleyway project .
• Implementation of the Event Street
project, concluding construction by
Fall 2017 .
Resources:
• Hill Event Street Project website
• Hill Event Street Design Concept
• Zero Waste Boulder
Sketch from Russel + Mills Studio University Hill Event ConceptUniversity Hill (photo courtesy of Sam Veucasovic, City of Boulder, May 2017)
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ACCESS MANAGEMENT & PARKING STRATEGY
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Item 1
SEEK SOLUTIONS WITH CO-BENEFITS
CASE STUDY: CHAUTAUQUA ACCESS MANAGEMENT PLAN
Introduction
Chautauqua is an iconic landmark that attracts a wide variety of people . Attractions
like the National Historic Landmark District, open space trails, the dining hall, city park
land, park ranger talks, rentable meeting space and cottages, and much more make
Chautauqua very popular . However, with popularity comes challenges, especially
during peak times . This is particularly true for parking, which impacts people who live,
work, and recreate in and around Chautauqua .
In response to this longstanding issue, Boulder, the Colorado Chautauqua Association
(CCA), and community members teamed to create a Chautauqua Access Management
Plan (CAMP) . Their goal was to create a plan to improve the experience of traveling
to and from the Chautauqua area, which includes the National Historic Landmark,
adjacent green space, and trailheads . The plan was also developed to minimize the
impacts of vehicles to neighbors, visitors, and the area’s natural and cultural resources .
A diverse working group appointed by the city manager helped staff evaluate the
challenges and opportunities of Chautauqua access .
Data Collection
During Summer 2016, multiple types of data collection efforts were undertaken, including
more traditional parking supply/demand and duration counts, customer intercept surveys,
and visitation count reviews . Specifically, data collection focused on understanding:
• Travel pattern and arrival routes
• Vehicle traffic and speeds
• Parking supply, duration, and utilization
• Bicycle parking and utilization
• Shared street interactions
Observations
The following key issues have been identified from the data collection, evaluation, and
public engagement process to date . Summer 2017 pilot projects will target and aim to
mitigate these key issues in preparation for development of the final CAMP strategy:
• The vast majority of visitors to the
Chautauqua area arrive by automobile,
which, combined with the popularity
of the area, creates traffic congestion,
neighborhood livability/parking
congestion, and greenhouse gas
emission levels that do not meet
Boulder’s transportation mode choice
or environmental goals .
• Parking demand within the
Chautauqua complex (including access
to the trailheads) exceeds supply .
Because of this, the surrounding
neighborhood streets often serve as
overflow parking for the site, which
creates a variety of concerns for
the residents of those streets . This
includes a lack of access to on-street
parking for their own homes; illegal
parking that limits sight distance to
conflict areas; and issues with trash,
noise, and verbal conflicts .
• Within the National Historic Landmark
itself, pedestrians walking
in the street (where there are no
sidewalks) come into conflict with
motor vehicles, including those looking
for parking spaces .
• Chautauqua Auditorium event night
shuttle buses become problematic for
the neighborhood east of Chautauqua
when shuttle riders request Americans
with Disabilities Act (ADA) drop-
offs at the Auditorium via Columbine
Avenue opposed to regular drop-
offs on Baseline Road . This creates
noise and odor concerns for east-side
neighborhood residents, and conflicts
with pedestrians and other vehicles
along Columbine .
• The Chautauqua Working Group
(CWG) recommended adding
speeding on residential streets within
and outside of the historic district as
an issue for future consideration .
Staff & Consultant Collaboration
CITY OF BOULDER
• Open Space and Mountain Parks
CONSULTANTS
• Fox Tuttle Hernandez, RRC
• RRC Associates
Public Involvement
KEY PLAYERS
• CAMP Working Group
• CCA
• Open Space users
• Boulder Convention and Visitors
Bureau
• Residents in Chautauqua
neighborhoods
• City of Boulder
› Community Vitality
› Transportation
› City Attorney’s office
› Parks and Recreation
TOOLS
• Online questionnaire
• Open houses
• City Council, Boards, and
Commission presentations
• Project website
What’s in the Works?
• Implement pilot strategies (only on
weekends) in Summer 2017, based
on direction from City Council . The
holistic pilot approach includes:
›Improving transit and other ways
to get to and from Chautauqua .
› Implementing managed parking
in Chautauqua and/or in
surrounding neighborhood .
› Exploring innovative solutions
like real-time parking
information, ridesharing, and
TNCs (i .e ., Uber and Lyft) .
› Implementing transportation
incentives for Chautauqua
employees .
Resources:
• CAMP website
• 2016 Chautauqua Lease between
CCA and City of Boulder
• OSMP–Chautauqua Trailheads
website
• CAMP PowerPoint presentation
• 2016 Fox Tuttle Hernandez, RRC
data report
• Transit Analysis
• CAMP: City Council Information
Packet Jan . 17, 2017
• CAMP Questionnaire results
OPEN HOUSE
CHAUTAUQUAACCESSMANAGEMENTPLAN
What Do We Know?
There were several key ndings from the Chautauqua Parking Analysis
Study and the Chautauqua Study Area Visitation Monitoring Report.
ChautauquaAccessManagementPlan.com
• Chautauqua Core Area and Dining Hall have steady use
in all time periods
• Approximately half 53% of people were heading for
open space with the peak occurring in the afternoon
• Chautauqua Green has steady use in the morning and
afternoon but drops off in the evening
• Peak use is seasonal (summer)
• As expected, nighttime peak for the auditorium
• The site experiences its greates use in the afternoon
Chautauqua Area Parking Demand
• 80% of Chautauqua visitors arrive by car
• Carpooling: average of 2.7 passengers per vehicle
• Parking supply adequate for demand most of the year
• Parking demand exceeds supply during summer months -Supply is 478 Spaces in Chautauqua Area
-Summer demand is >700 spaces during peak visitation
Overow parking impacts (during peak summer months)
• Chautauqua core (cottage) area
• Surrounding neighborhood
• Parking on South side of Baseline Road
Key Findings from Chautauqua Parking Analysis
Study (2013) and User Intercept Survey (2013):
Use of Chautauqua area • Visitation to OSMP trails was
consistently higher on weekend days
compared to weekdays
• Total daily OSMP visits ranged from
188 to 5,126 (average 2,570)
Key Findings from OSMP Chautauqua Study
Area Visitation Monitoring Report (2015):
Note: Counts collected from 8-1 to 11-30 in 2004 and 2015.
Month 2004 Visits 2015 VisitsAugust
SeptemberOctoberNovember
42,000
36,00035,00019,000
103,905
81,27074,12554,244
Total 132,000 313,544
OSMP Visitation Estimates at Chautauqua
OPEN HOUSE
CHAUTAUQUAACCESSMANAGEMENTPLAN Where Do You Live?
ChautauquaAccessManagementPlan.com
Longmont
Denver
LafayetteArapahoe Ave
Baseline Rd
Canyon St
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75th St755th StFoothills PkwyLouisville
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DRKINNIKINIC RD18TH STAURORA AV
CASCADE AV
EUCLID AV
BASELINE AV
AURORA AV
UNIVERSITYOF COLORADOCAMPUSAURORA AV
CASCADE AV CASCADE AV
EUCLID AV
BASELINE AV BASELINE AV19TH ST17TH STMARIPOSA AV
COLUMBINE AV
ASTOR LN
Sierra Dr 16TH STBLUEBELL AV
CLEMATIS DR
KING AV 20TH ST18TH ST19TH ST17TH ST18TH ST17TH ST20TH ST19TH ST20TH ST21TH ST22TH ST21TH ST22TH ST15TH ST15TH ST14TH ST12TH ST13TH STLINCOLN PL16TH ST7TH ST8TH ST6TH ST9TH STGRANT PL11TH ST10TH ST29TH ST27TH ST28TH ST27TH WYHISTORIC CHAUTAUQUA DISTRICT
OPEN HOUSE
CHAUTAUQUAACCESSMANAGEMENTPLAN What is our Planning Process and Timeline?
ChautauquaAccessManagementPlan.com
PROJECT
PHASES
BOARDS &
CITY COUNCIL
MEETINGS
KEY PUBLIC
ENGAGEMENT
OPPORTUNITIES
ongoing outreach and engagement
Project
Planning
Spring
2016
Data
Collection
Summer
2016
Data
Analysis
Fall
2016
Draft
Strategies
Winter
2016/17
Conrm
Pilot
Strategies
Spring
2017
Pilot
Project &
Analysis
Summer
2017
Rene &
Finalize
Plan
Fall/Winter
2017
Boards from CAMP presentation
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
ACCESS MANAGEMENT & PARKING STRATEGY
23
Packet Pg. 68
Item 1
PLAN FOR THE PRESENT AND FUTURE
CASE STUDY: EAST ARAPAHOE TRANSPORTATION PLAN
Introduction
In 2014, an RTD Northwest Area Mobility Study recommended State Highway 7
Corridor (Arapahoe Avenue to 287, and Baseline Road east to I-25) between Boulder,
Lafayette, and Brighton as a strong candidate for a regional arterial Bus Rapid Transit
(BRT) line .
As part of the East Arapahoe Transportation Plan, Boulder began looking at how
a BRT might function (design, service, and operations) . Community stakeholders
involved in the project urged Boulder to consider a number of potential transportation
improvements within the East Arapahoe Corridor (in addition to BRT feasibility),
including TDM programs, and managed parking . Today, the East Arapahoe Corridor is
one of Boulder’s busiest regional travel corridors .
As Boulder plans for the future, exponential growth in surrounding communities will
likely place additional demands on the corridor’s existing transportation system . From
people commuting into Boulder for work or school, traveling to Boulder for healthcare
services, or simply accessing recreational and shopping amenities, forecasted regional
transportation demands on the East Arapahoe Corridor will continue to impact how
the corridor functions today and in the future .
Key Goals
• Provide Complete Streets in the East Arapahoe Corridor that offer people a
variety of safe and reliable travel choices .
• Increase the number of trips the East Arapahoe Corridor can carry to
accommodate growing local transportation needs and projected growth in
surrounding communities .
• Promote a more efficient use of TDM, manage parking, and offer people
multimodal travel options .
• Deliver cost-effective transportation solutions that can be phased over time .
• Develop transportation improvements that support Boulder’s Sustainability
Framework and the Boulder Valley Comprehensive Plan Update .
Observations
• Regional transportation demands
will change how the East Arapahoe
Corridor functions .
• Effective stakeholder engagement
can produce unexpected and
creative solutions .
• East Arapahoe used to be a
“pass-through” corridor; with
CU Boulder’s East Campus, it is
now more of a destination .
• The corridor provides an
opportunity to implement edge/
satellite parking concepts .
Staff & Consultant Collaboration
CITY OF BOULDER
• Community Vitality
• Comprehensive Planning
• Transportation
• Parks and Recreation
CONSULTANTS
• Nelson\Nygaard Consulting
Associates
• Fox Tuttle Hernandez, RRC
• Fehr & Peers Transportation
Consultants
Public Involvement
KEY PLAYERS
• Community working group
• Small and large businesses
• Neighborhood associations
• Cycling advocates
• Disabled community
• Community at large
• Boards/Commissions
TOOLS
• Community working group
• Online questionnaire
• Public workshops
• Small group meetings
• Project website
• Webinars
• Email
What’s in the Works?
• Continue working on draft district
cross section alternatives, designed
with input from a community
working group and public
comment .
• Provide edge/satellite parking
options in Erie, Lafayette,
Broomfield, and East Boulder to
encourage commuters to transition
out of their cars sooner .
• Implement a targeted marketing
campaign to better inform
commuters about their options .
• Expand the EcoPass program .
• Encourage the use of ridesharing
options with regional TNCs .
Resources:
• Project website
• Public input summary
• Community working group website
• Open House boards
• Best Practice and Case Study
Research
• Draft District Cross Sections
• Area Maps
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
ACCESS MANAGEMENT & PARKING STRATEGY
25
Packet Pg. 69
Item 1
CULTIVATE PARTNERSHIPS
CASE STUDY: DOOR TO DOWNTOWN (d2d PILOT)
Introduction
In November 2016, Boulder and the Downtown Boulder Partnership debuted a new
service that provided discounted door-to-door access to and from Downtown Boulder .
The pilot program, Door to Downtown, or “d2d,” was a collaborative, Public-Private
partnership between Boulder, the Downtown Boulder Partnership, TNCs Uber and
Lyft, taxi company zTrip, the Rocky Mountain Institute (RMI), and mobility technology
provider Commutifi .
The goal of the d2d pilot, which initially ran over the 2016-17 holiday season from
Thanksgiving to New Year’s Day, was to bring holiday shoppers and diners from their
homes directly to their Downtown Boulder destinations and back again . The program
provided a $25 credit good for five $5 credits on rides into Downtown Boulder
between 11 a .m . and 9 p .m ., and participating merchants offered a $5 credit for the
trip home with a purchase of $50 or more . The initial pilot was extended through
Valentine’s Day 2017 .
According to key partner, RMI, “the long-term opportunity d2d presents is exciting .
To date, great research has been done to understand how the cost of a mobility
service affects demand . However, in practice (at current prices) door-to-door services
are more expensive than operating a car in most situations . The d2d pilot offers a
unique opportunity to test the demand for new transportation options when they are
essentially the same price as driving and parking . For the first time, we can test the
price elasticity of demand for mobility services .”
Key Goals
• Reduce Downtown Boulder parking demand by customers who currently drive
and park single-occupant vehicles (SOVs) .
• Support the economic vitality of Downtown Boulder during the holiday season .
• Introduce a new mode to a demographic that reportedly does not visit Downtown
Boulder due to the cost/perceived lack of parking .
• Provide increased roadway safety for return trips after an evening
Downtown Boulder .
• Encourage customers to explore a new way of accessing Downtown Boulder .
Observations
• Potential d2d users responded to
the idea of a subsidy but did not
fully utilize the provided benefit .
• The subsidized ride was the
primary motivation for using the
service, over avoiding traffic/
parking or as an alternative to
driving impaired .
• Younger demographics are more
comfortable with accepting of
the technology versus older
demographics .
• Consistent and creative marketing,
along with an easy to use customer
interface, is important .
• The program was more effective
when the pilot period was
extended from the original six
weeks .
• The Thanksgiving to New Year’s
Day period may not have been
ideal—many potential users were
out of town or otherwise engaged .
• People respond better to surveys
when meaningful incentives are
provided .
Staff & Consultant Collaboration
CITY OF BOULDER
• Community Vitality
• Transportation
• City Attorney’s office
CONSULTANTS
• Commutifi
• Rocky Mountain Institute
Public Involvement
KEY PLAYERS
• Downtown Boulder Partnership
• TNCs Uber and Lyft
• Taxi company zTrip
• Commutifi
• Downtown property and business
owners
• Boards/Commissions
TOOLS
• Customer surveys
• Promotion through local media
channels—print, digital, and
televised
What’s in the Works?
• Consider another pilot in the future,
based on this assessment .
Resources:
• Program Information and FAQ
• RMI final report
“ This project demonstrates how public and private
partners can collaborate to bring innovative mobility
solutions to cities . If we can replicate and scale such
efforts, we will see more people relying on mobility
services, rather than owning their own cars, which sit
unused 95 percent of the time .”
– Jeruld Weiland, Managing Director Rocky Mountain Institute
OVER
5,200
PEOPLE
participated in the d2d pilot
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
district
management
codepricing
TOOLS FOR CHANGE
technology parking
$$$
travel
options
ACCESS MANAGEMENT & PARKING STRATEGY
27
Packet Pg. 70
Item 1
AMPS is designed to integrate with and support
Boulder’s existing master plans and other
community planning efforts while also offering
an opportunity to build on and evaluate existing
measures in new ways . Making use of measures
that can be evaluated citywide and/or by local area
(i .e ., district, neighborhood, or activity center)
provides more flexibility for measuring the social,
economic, and environmental impact of projects
approached through the AMPS process .
This context-sensitive approach supports the AMPS Guiding Principles, and can be
more qualitative in measurement . It promotes a more open process for realigning
and adjusting while projects are in progress, as opposed to waiting until projects are
completed to measure their effectiveness . It also supports the basic premise of AMPS,
which is to look at parking and access management initiatives through an integrated
lens . The following performance measures, organized by the AMPS Guiding Principle,
are offered as guidelines for future parking and access management projects and are
based on performance measures from existing master/strategic plans and readily-
available data .
AMPS Guiding Principle: Provide for All Transportation Modes
PERFORMANCE MEASURES:
• Change in mode share by residents and non-residents
• Change in mode share by employees during workday
• Miles of bikeway
• Transit ridership
• Parking utilization
Performance MEASURES
AMPS Guiding Principle: Customize Tools by Area
PERFORMANCE MEASURES:
• Percentage of defined districts/activity nodes aligning with the
15-minute neighborhood concept
• Alignment of transportation alternatives with districts experiencing
the largest job growth
• Transit service changes over time—both locally and regionally
• Impacts on commercial areas and businesses, measured through
surveys and feedback, including economic benefits
AMPS Guiding Principle: Support a Diversity of People
PERFORMANCE MEASURES:
• Average commute distance for resident and
non-resident employees
• Accessibility of employee mobility options by diverse income levels
• Relationship between availability of transit service and
availability of jobs
• Percentage of older adults and people with disabilities
served by transit
AMPS Guiding Principle: Seek Solutions with Co-Benefits
PERFORMANCE MEASURES:
• Vehicle miles traveled per capita for employees and residents
citywide and within districts
• Traffic congestion to/from prioritized nodes of workforce
trip generation
• Travel options that support economic vitality
AMPS Guiding Principle: Plan for the Present and Future
PERFORMANCE MEASURES:
• Impact of TDM Toolkit implementations (i .e ., adoption rate of parking
cash out, EcoPass, and alternative work schedules utilization) related
to mode share and Vehicle Miles Traveled (VMT) reduction goals
• Support for pilot programs that explore new technologies and travel
options
AMPS Guiding Principle: Cultivate Partnerships
PERFORMANCE MEASURES:
• Utilize the existing Boulder Valley Employee Survey and Downtown
Intercept Survey to track progress over time
• Consider developing district-specific intercept surveys
• Build on the existing d2d partnership with Downtown Boulder, TNCs,
and technology provider Commutifi
• Use public-private partnerships to minimize needed parking and
maximize a mix of uses
EXISTING PLANS & RESOURCES
• Sustainability Framework
• Climate Commitment
• Boulder Valley Comprehensive
Plan (BVCP)
• Transportation Master Plan
(TMP) and Transportation
Report on Progress (TROP)
• Safe Streets Boulder: Toward
Vision Zero (TVZ)
• Human Services Strategy
• Economic Sustainability
Strategy
• District and Corridor Plans
• Resiliency Strategy
• Boulder Valley Employee
Survey
• Downtown Employee
Travel Survey
• Hill Employee Travel Survey
• TVAP Plan
• Downtown Boulder Intercept
Survey
29
Packet Pg. 71
Item 1
2015 Accomplishments cont.
Since AMPS was initiated in Spring 2014, interdepartmental teams of city staff have
collaborated with a variety of consultant partners and community members to
complete an impressive list of accomplishments .
PHASE 1 ORGANIZATION & BASELINE ASSESSMENT
The first activity for the AMPS project team was to develop a visionary set of Guiding
Principles, define key Focus Areas, and conduct best practice research . The team also
spent much of 2014 developing a comprehensive community engagement plan to
support the AMPS process .
2014 Accomplishments
• Completed an AMPS Best Practices
and Peer City document .
• Completed short-term auto and bike
parking code changes .
• Developed a Request for Proposals for
the replacement of Downtown Boulder
garage access equipment .
• Developed and reviewed TDM Toolkit
for private development options .
• Installed pilot Parklet on The Hill
May through October .
• Installed solar-powered charging
stations at Broadway and
Spruce Street .
• Implemented pay-by-cell in all
parking districts .
• Installed variable messaging signage
in Downtown Boulder garages .
PHASE II: PUBLIC INVOLVEMENT &
TARGETED WORK BY FOCUS AREA
Throughout 2015, the extensive community engagement planning work was put into
practice . From Open Houses and “Coffee Talk” meetings to a new online engagement
platform, Commonplace, the public was given multiple opportunities to provide input
on the AMPS philosophy and project Focus Areas (“Tools for Change”) .
Targeted work by Focus Area included:
• Refined options and draft
recommendations for TDM policies
for new developments .
• Explored potential modifications to
long-term on-street parking (“72-hour
Rule”) .
• Reviewed options for edge/satellite
parking .
• Analyzed shared parking policies
between districts and private
developments .
• Examined parking-related code
changes .
2015 Accomplishments
• Issued a Request for Proposals for the
replacement of Downtown Boulder
garage access equipment, revenue
control, and permitting systems to
a state-of-the-art system that will
coordinate with other technologies
such as the variable messaging system .
• Negotiated Public-Private partnerships
for a mixed-use project with a shared
parking option between the CAGID
and Trinity Lutheran Church in
Downtown Boulder .
• Initiated a public-private partnership
redevelopment of the UHGID 14th
Street parking lot .
• Explored a mobility hub for North
Boulder, at the intersection of North
Broadway and US36, with CDOT, RTD,
and Boulder County .
• Increased the Downtown CAGID
long-term parking permit rate for
Downtown Boulder and Hill surface
lots and garages .
• Completed best practice and peer city
reviews of on-street car share parking
policies to provide flexibility with new
car share programs .
• Implemented the community-wide
Downtown Employee Travel Survey .
• Coordinated parking management
and TDM program development
for the mixed-use neighborhood in
anticipation of the completion of
Depot Square at Boulder Junction .
• Coordinated with Southwest Energy
Efficiency Project (SWEEP) and
Climate Commitment staff regarding
EV charging stations at parking
facilities .
• Implemented Civic Area parking
and TDM plans .
• Studied Downtown Boulder parklet
to determine potential criteria and
locations, operational parameters
and considerations, installation
requirements, and recommendations
for potential sites .
• Evaluated the pilot parklet on The Hill .
• Worked with multiple parties—the
hotel, RTD, affordable housing, and
Boulder Junction Parking District—to
implement a parking management
system to accommodate the variety
of users of the shared parking garages
in the Depot Square mixed-use
development .
• Developed a parking pricing strategy
in BJAD to implement the SUMP
principles and reflect the market of the
surrounding area .
• Conducted a Downtown Boulder bike
rack occupancy count .
• Partnered with Downtown Boulder
startup company, Parkifi, to install
parking sensors .
Phase 1
Resources
• Oct . 28, 2014
AMPS Memo
• July 29,
2014 AMPS
Presentation
• June 10, 2014
AMPS Memo
Phase II
Resources
• AMPS
infographic
• Open House
Boards &
Project Update
• Spring 2015
Community
Engagement
Summary
• Fall 2015
Community
Engagement
Summary
• May 26,
2015 AMPS
Presentation
• May 26, 2015
AMPS Memo
ACCOMPLISHMENTS &Ongoing Work
Phase III continued on next page
PHASE III: PROCESS DEFINITION & MEASURING PROGRESS
The following projects are ongoing, with start dates between 2016 and 2017 .
CAMP
The CAMP project began as part
of a new lease with the CCA in
October 2015 . The lease included
a commitment to develop an access
and parking management plan for
the historic district and surrounding
area . The traffic and parking data
collection and a visitor intercept
survey were completed in Summer
2016 . A CAMP working group was
created to work with staff to develop
recommendations for trial, short-term
measures to be implemented and
evaluated in Summer 2017 to create
a final CAMP .
Next Steps
• Implement CAMP Summer 2017
pilot on Saturdays and Sundays,
June 3 through August 27, 2017 .
• Collect data throughout the
pilot period .
• Share results of data collection
and public input, re: visitor
experience with the community,
Boards and Commissions, and
City Council to determine future
CAMP implementation strategies .
ACCESS MANAGEMENT & PARKING STRATEGY
31
Packet Pg. 72
Item 1
Next Steps
• Initiate process with parking industry
consultant to assist with a research
comparison of similar organizations with
neighborhood permit programs .
• Examine the NPP and regulations
starting in the 4th quarter of 2016 into
2017 .
• Consider the NPP and related issues
within the broader AMPS context .
• Provide a recommendation of guiding
principles from the working group to city
council .
• Create a public outreach process .
Parking Pricing
In Fall 2016, Community Vitality
and Parking Services conducted a Parking
Pricing Practitioner Panel
on the “Value of Parking” . The panel was
comprised of parking and downtown
management professionals from across
the nation . Public process and feedback
led to the formation of next steps and an
action timeline . During 2017, Community
Vitality and Parking Services plan to analyze
parking-related fees in an effort
to maximize the management of parking
resources in commercial areas . The review
will include an analysis of on-street parking
fees, garage short-term parking rates, rates
between different garages, and parking
citation fines .
In addition to reviewing specific rates,
staff will also consider parking pricing as a
tool to redistribute parking demand in the
Downtown Boulder area .
Next Steps
• Initiate process with parking industry
consultant to assist with demand-based
pricing research comparison with like
organizations .
• Analyze “big data” collected from vendor
on and off street to help guide pricing
decision making .
• Form a working group from boards and
commissions and other organizations
to assist with determining the “Value of
Parking” .
• Provide a recommendation of guiding
principles from the
working group to city council .
• Initiate public outreach and
communication of proposed
parking rate changes, if approved .
TDM Plan Ordinance for New Developments
The purpose of having a TDM plan
ordinance is to require new developments
to meet specific goals related to reducing
the development’s impact on Boulder’s
transportation system and to ensure
compliance . In 2016, the project team
evaluated nine commercial and seven
residential developments that were required
to submit TDM plans . The project team
measured the plans’ effectiveness and
their evaluations informed the design and
administration of the proposed TDM plan
ordinance .
Next Steps
• Update Boards, Commissions, and
Council on findings of TDM plan
evaluations .
• Present updated TDM plan ordinance
design concept to Boards, Commissions,
and Council .
• Initiate the process of implementing
the TDM ordinance for future new
development, if council gives direction
to move forward .
Civic Area Parking Management
and TDM Programs
In 2016, a new parking management
system was implemented that
holistically manages all the lots in
the Civic Area, provides one and
a half hours of free parking, and
employs license plate recognition
to enforce paid parking . For city
government employees, the expanded
TDM program provided satellite
parking options, a parking cash out
program, and personalized concierge
travel assistance .
Next Steps
• Continue evaluating parking
supply and demand and
the effectiveness of the
TDM program .
• Expand EcoPass benefits to
new categories of city
government employees .
• Increase vanpool rebate from
$20 to $40 per month for city
government employees .
Parking Code Changes
The intent of this project is to update
Boulder’s parking code to include
supply rates by land use type and
area type, as appropriate, to:
• Reflect the actual parking supply
and demand rates that currently
exist throughout Boulder .
• Minimize the construction of
underutilized parking spaces .
• Reflect the multimodal goals of
the Transportation Master Plan .
• Reflect changing market
conditions nationwide .
• Decrease the number of parking
reductions that are requested .
• Coordinate and align parking
supply rates with Boulder’s
evolving TDM goals, ordinances,
and regulations .
In 2016, the project team conducted
additional parking supply and
occupancy observations at 20
sites, including commercial, office,
industrial, mixed-use, and residential
land uses . These observations
supplemented the more than 30 sites
that had previously been studied in
2015 . A range of draft parking rate
recommendations, including parking
maximums and minimums, were then
developed for consideration . The
potential to coordinate and link
the recommended parking supply
rates with the evolving TDM ordinance
was also identified .
Next Steps
• Refine the draft parking code
changes and develop scenarios
that range from minimum
changes to significant reductions
in required parking .
• Coordinate with the ongoing
TDM ordinance development
process to link the range of
parking reductions in each
scenario to comply with specific
TDM regulations .
• Update Boards, Commissions and
Council on findings re: existing
parking supply and utilization by
land use .
• Present the updated parking
supply rate scenarios to Boards,
Commissions, and Council for
consideration .
• Based on feedback from
Boards, Commissions, and
Council, develop a recommended
set of parking code updates .
Phase III continued
NPP Review
During 2017, Community
Vitality and Parking Services,
with guidance from city
council, plans to undergo a
review of the NPP . The review
will include an analysis of NPP
zone creations and expansions;
resident, commuter, and visitor
permit pricing; and zone time
limits for commuters . Staff will
also consider neighborhood
parking issues that are not
addressed by current NPP
regulations .
ACCESS MANAGEMENT & PARKING STRATEGY
33
Packet Pg. 73
Item 1
This concluding chapter touches on a few emerging trends that will likely influence
and shape how people travel to and around Boulder for years to come:
• Shared travel options
• Data-driven management
• Adaptive reuse principles
• Autonomous and Connected Vehicles
(AV/CV)
• Electric Vehicles (EVs)
AMPS was designed to be a guiding framework
that balances today’s multimodal access needs,
trends, and choices while also preparing for
inevitable shifts in demographics, economics, travel
choices, physical design, and technology .
Preparing for
THE FUTURE
SHARED TRAVEL OPTIONS
Promote shared travel options over
tools that push users to a single mode
each day.
One-way travel options are rapidly
expanding . These include walking, transit,
bike share (B-Cycle), TNCs, carsharing
(eGo), and much more . In the near future,
shared autonomous vehicles will likely
also join this category of transportation
options . These travel choices give users
even more choices for first- and last-mile
connectivity and greater opportunity
to live a car-free or “car-lite” lifestyle .
Boulder’s existing SUMP philosophy for
parking management is a great example
of how the city is effectively managing
a limited resource today while also
preparing for changing travel behaviors in
the future .
DATA-DRIVEN MANAGEMENT
Pursue data-driven management
practices to improve system efficiency
and share information effectively.
Performance-based parking pricing,
Uber’s “surge pricing,” and peak-hour
transit fares are all examples of how to
use pricing to address peak demands .
Real-time data collection and analysis—
such as commute mode detection that
can distinguish between biking, SOV,
carpooling, and transit use—will lay
the foundation for effective system
management moving forward . Boulder
has demonstrated a commitment to
making data-driven parking and access
management decisions by updating its
PARCS equipment in publicly-owned
parking garages and collaborating with
data analytics company, Smarking .
Informed decision-making is a Boulder
community value . By putting these
tools in place now, Boulder will be well-
positioned for future policy updates and
financial investments .
ADAPTIVE REUSE PRINCIPLES
Consider adaptive reuse principles in new investments that are based
on current conditions.
While autonomous vehicles are likely to have a profound effect on
transportation systems in the coming years, there are simply too many
uncertainties to be able to accurately predict associated changes in land
use . Flexible design principles that allow buildings to adapt to different
uses are likely to be cost-effective investments . Developing new parking
structures that are able to either incorporate an automated vehicle
storage and retrieval system (AVSRS) or transform to an alternate use
will ensure that the structures are cost-effective investments, whether
parking demands increase or decrease .
AUTONOMOUS & CONNECTED VEHICLES
Q&A with Dr. Doug Gettman
Global Director of Smart Mobility
and AV/CV Consulting Services,
Kimley-Horn and Associates, Inc.
Q: What is the single most significant
impact of AV/CV to the parking
industry, from your perspective?
A: If I have to pick just one, I would say
in the long-term, likely more than ten
years from now, as Level 4 driverless
vehicles (aTaxis, whether or not they
are shared-rides) become more
capable to negotiate the majority of
roadway facilities, the vast seas of
parking lots we currently have around
malls and shops in some parts of the
country will not be as necessary. We
currently seem to build parking lots
for the 99th percentile demand day,
generating so much land area that
goes unused most of the time. The
Level 4 driverless fleets of aTaxis may
be more efficiently parked in different
configurations—perhaps more like
how rental car facilities are currently
operated (nose-to-tail) since availability
of individual vehicles in the middle of
the lot is not necessary. SUVs, small
vehicles, trucks, etc. could be parked
in separate lanes and the next vehicle
of a certain type could be dispatched
to a user from the front of the queue.
Self-driving Level 3 vehicles (privately
owned) will still need some traditional
parking facilities, as individual owners
will need access to their own vehicles
at any time.
Q: When should cities start
thinking about how
AV/CV technology will
impact them?
A: We’re asked these kind of
questions from our public
agency clients now; however, the
industry as a whole doesn’t need
to start redesigning parking lots
for at least another five years or so.
Most of the release dates we see from
AV/CV developers for revenue service
for taxis are not until at least 2021.
However, it isn’t clear what capabilities
those aTaxis will have initially. Being
able to drive on “any” street from any
origin to any destination (and park
in any lot), completely driverless, is
a pretty big challenge. Businesses
and parking lot/garage owners
that want to be early-adopters or
trailblazers could start partnering
today with AV developers and
parking facility designers to start
piloting new concepts and doing
demonstration projects.
Q: What are your best “go-to” resources
on the topic?
A: Alain Kornhauser from Princeton/
Soterea has an excellent curated
newsletter of AV-related news items ,
including his seasoned commentary,
that he distributes about once a month.
ITS America’s SmartBrief newsletter
typically picks up AV announcements
as they happen within 1-2 days.
Traffic Technology Today has an
excellent email newsletter.
IMPACTS OF EVs
To help support the trend of
increased EV ownership, cities
across the nation are looking at
how to incorporate and prioritize
EV investments into existing
infrastructure .
Items for consideration include:
• Quantity and location
of charging stations,
including possible location
prioritization
• Variety of charging stations
offered (Levels 1-3)
• Fee schedule or time stay
limit for EV spaces
• Full or self-service offerings
• Communication and signage
to promote utilization
• Payment options
ACCESS MANAGEMENT & PARKING STRATEGY
35
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San Luis Obispo Page 1
Wednesday, September 26, 2018
Special Meeting of the City Council
CALL TO ORDER
A Special Meeting of the San Luis Obispo City Council was called to order on Wednesday
September 26, 2018 at 1:00 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 Andy Pease, Dan Rivoire, Vice Mayor Carlyn Christianson,
and Mayor Heidi Harmon.
Council Members
Absent: Council Member Aaron Gomez
City Staff
Present: Derek Johnson, City Manager; Rick Bolanos 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
A. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code § 54957.6
Agency Negotiators: Monica Irons, Nickole Sutter, Rick Bolanos, Derek Johnson,
Christine Dietrick
Represented Employee San Luis Obispo City Employee’s Association (SLOCEA)
Organizations: San Luis Obispo Police Officer’s Association (POA)
San Luis Obispo Police Staff Officer’s Association
(SLOPSOA)
International Association of Firefighters Local 3523
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San Luis Obispo City Council Minutes of September 26, 2018 Page 2
Unrepresented Employees: Unrepresented Management Employees
Unrepresented Confidential Employees
CITY ATTORNEY REPORT ON CLOSED SESSION
XX reported that there was no reportable action from the Closed Session.
ADJOURNMENT
The meeting was adjourned at 1:18 p.m. The next Regular Meeting of Tuesday, October 2, 2018
at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California.
__________________________
Teresa Purrington
City Clerk
APPROVED BY COUNCIL: XX/XX/2018
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San Luis Obispo Page 1
Tuesday October 16, 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 16, 2018 at 5:30 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; Jon Ansolabehere, Assistant 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
Jeffrey Specht
---End of Public Comment---
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
RECESSED AT 6:00 P.M. TO THE REGULAR MEETING OF TUESDAY, OCTOBER
16, 2018 TO BEGIN AT 6:00 P.M.
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San Luis Obispo City Council Minutes of October 16, 2018 Page 2
CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday,
October 16, 2018 at 6:10 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; Jon Ansolabehere, Assistant City Attorney; and
Teresa Purrington, City Clerk; were present at Roll Call. Other staff members
presented reports or responded to questions as indicated in the minutes.
PLEDGE OF ALLEGIANCE
Council Member Andy Pease led the Pledge of Allegiance.
CITY ATTORNEY REPORT ON CLOSED SESSION
Assistant City Attorney Jon Ansolabehere stated that there was no reportable action for Closed
Session Items A.
INTRODUCTION
1. INTRODUCTION - DOWNTOWN SLO, CEO
Charlene Rosales, Economic Development Manager introduced Downtown SLO, CEO,
Bettina Swigger.
2. INTRODUCTION - NEW CITY FINANCE DIRECTOR
City Manager Derek Johnson introduced Finance Director Brigitte Elke.
3. PROCLAMATION - CHIEF OLSON
City Manager Derek Johnson presented a Proclamation to Chief Garret Olson to recognize
his retirement after 30 years of fire service.
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San Luis Obispo City Council Minutes of October 16, 2018 Page 3
4. PROCLAMATION - ARBOR DAY
Mayor Harmon presented a Proclamation to Ron Combs, City Arborist, proclaiming
November 3, 2018 as “Arbor Day” in the City of San Luis Obispo.
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Phil Hurst
Jeffrey Specht
Don Hedrick
---End of Public Comment---
CONSENT AGENDA
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL
MEMBER RIVOIRE, CARRIED 5-0 to approve Consent Calendar Items 5 thru 12.
5. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate.
6. MINUTES OF THE CITY COUNCIL MEETINGS OF OCTOBER 2, 2018
CARRIED 5-0, to 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
CARRIED 5-0 to 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
CARRIED 5-0 to 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.
9. AUTHORIZATION TO SUBMIT PG&E ON-BILL FINANCING LOAN
AGREEMENTS IN SUPPORT OF ENERGY EFFICIENCY LIGHTING
RETROFITS
CARRIED 5-0 to:
1. Authorize staff to negotiate PG&E On-Bill Financing Loan Agreements; and
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San Luis Obispo City Council Minutes of October 16, 2018 Page 4
2. Adopt Resolution No. 10948 (2018 Series) 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
CARRIED 5-0 to 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
CARRIED 5-0 to
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
CARRIED 5-0 to 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.
PUBLIC HEARING ITEMS 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
Community Development Director Michael Codron and Planning Technician Cara
Vereschagin provided an in-depth staff report and responded to Council questions.
Public Comments:
Scott Smith, HASLO
---End of Public Comment---
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San Luis Obispo City Council Minutes of October 16, 2018 Page 5
ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY VICE MAYOR
CHRISTIANSON, CARRIED 5-0 to adopt Resolution No. 10949 (2018 Series) entitled, “A
Resolution of the City Council of the City of San Luis Obispo, California, approving the
incurring of a tax exempt obligation by the Housing Authority of the City of San Luis
Obispo for the purpose of providing financing for the 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
Interim Deputy Director Robert Hill provided an in-depth staff report and responded to
Council questions.
Public Comments:
Don Hedrick
Greg Bettencourt
Paul Reinhardt
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY VICE MAYOR
CHRISTIANSON, CARRIED 5-0 to adopt Resolution No. 10950 (2018 Series) 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
Interim Deputy City Manager Greg Hermann and Tourism Manager Molly Cano provided an
in-depth staff report and responded to Council questions.
Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL
MEMBER GOMEZ, CARRIED 5-0 to:
1. Conduct a public hearing to receive testimony regarding the City Council’s intention to
continue the citywide Tourism Business Improvement District; and no sufficient protest
being received,
2. Adopt Resolution No. 10951 (2018 Series) entitled, “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.”
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San Luis Obispo City Council Minutes of October 16, 2018 Page 6
16. PUBLIC HEARING - UPDATE FOR THE ORCUTT AREA SPECIFIC PLAN
PUBLIC FACILITIES FINANCING PLAN
Community Development Director Michael Codron, and Consultant Dave Watson provided
an in-depth staff report and responded to Council questions.
Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL
MEMBER RIVOIRE, CARRIED 5-0 to:
1. Adopt Resolution No. 10952 (2018 Series) 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. With Section 5 amended as follows:
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 or to enter into an agreement to cover
the shortfall for any vested subdivisions that successfully dispute the PFFP update.
RECESS
Council recessed at 8:05 p.m. and reconvened at 8:15 p.m., with all Council Members present.
17. ADJUSTMENTS TO THE COMPENSATION OF THE UNREPRESENTED
CONFIDENTIAL EMPLOYEES
Human Resources Director Monica Irons and Human Resources Analyst Nickole Sutter
provided an in-depth staff report and responded to Council questions.
Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL
MEMBER GOMEZ, CARRIED 5-0 to adopt Resolution No. 10953 (2018 Series) 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).
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18. SUCCESSOR MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SAN
LUIS OBISPO AND THE SAN LUIS OBISPO POLICE OFFICERS’ ASSOCIATION
Human Resources Director Monica Irons and Human Resources Analyst Nickole Sutter
provided an in-depth staff report and responded to Council questions.
Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL
MEMBER RIVOIRE, CARRIED 5-0 to adopt Resolution No. 10954 (2018 Series) entitled,
“A Resolution of the City Council of the City of San Luis Obispo, California, adopting and
ratifying the Memorandum of Agreement between the City of San Luis Obispo and the San
Luis Obispo Police Officers’ Association for the period of July 1, 2018 to June 30,
2021.”with changes made in the staff agenda correspondence provided prior to the meeting.
19. PARTY REGISTRATION PROGRAM
Police Captain Jeff Smith and Neighborhood Outreach Manager Christine Wallace provided
an in-depth staff report and responded to Council questions.
Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL
MEMBER PEASE, CARRIED 5-0 to:
1. Receive an update on the 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” with the revised
guidelines recommended in the staff report.
20. CANNABIS OPERATOR PERMIT APPLICATION REQUIREMENTS, RANKING
CRITERIA, AND ANNUAL APPLICATION SUBMITTAL PERIOD
Community Development Director Michael Codron, Consultants Fran Mancia, and Brad
Roe, both from MuniServices provided an in-depth staff report and responded to Council
questions.
Public Comments:
Jeff Specht
Don Hedrick
Sean Donahoe
---End of Public Comment---
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ACTION: The following direction provided on changes to the evaluation criteria:
• Define terms for Applicants, Operators, and Principals.
• Clarify the scope of the product list.
• After initial application period, allow applications from all business types other than
retail storefronts and cultivators at any time.
• Modify the form so there is greater clarity regarding the specific criteria that will be
applied to the different application types.
• Define supplies and equipment, for purposes of local procurement criteria.
• Increase point value for Section 3.0 (local experience) to emphasize value of local
cannabis business experience.
• Section 4.0 (Equity and Labor Criteria) reduce point value to 20 points and
redistribute points within this category accordingly.
• Section 5.0 (Responsible Use Messaging) Look at consolidating messaging criteria to
increase point value of individual criteria.
• Application criteria to be modified to reduce upfront requirements for site specific
architectural plans.
• Simplify the application and operator permit process for laboratory testing uses.
• Strike Section 9.0, Beneficial Uses.
• Section 10.0 (Land Development) Clarify that raw land development still requires
appropriate zoning.
• Section 2.0 (Record of compliant business operations) Increase points from 20 to 30
and add points for applications that “Demonstrate financial capacity to capitalize start
up and sustain business operations.”
Revised evaluation criteria to come back to City Council on November 27, 2018.
COUNCIL COMMUNICATIONS AND LIAISON REPORTS
Mayor Harmon attended the indigenous people event at Laguna Lake Park, participated in a
Race Matters event at CL Smith Elementary and attended the Health and Housing Summit.
Council Member Pease attended the Mayor’s Monthly meeting and received an update from the
Mexican consulate that serves the tri-county, and participated in the AIA Chapter presentation on
design and planning on “How Do Cities Grow Well.”
ADJOURNMENT
The meeting was adjourned at 10:42 p.m. The Regular re-scheduled City Council Meetings of
Tuesday, November 13, 2018, at 4:00 p.m. and 6:00 p.m., respectively, in the Council Chamber,
990 Palm Street, San Luis Obispo, California.
__________________________
Teresa Purrington
City Clerk
APPROVED BY COUNCIL: XX/XX/2018
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Item 4
Meeting Date: 11/13/2018
FROM: Michael Codron, Community Development Director
Prepared By: Cara Vereschagin, Assistant Planner
SUBJECT: CONSIDERATION OF THE HUMAN RELATIONS COMMISSION’S
RECOMMENDED PRIORITIES FOR THE 2019-2020 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AND GRANTS-IN-AID (GIA)
PROGRAMS
RECOMMENDATION
Approve Community Development Block Grant and Grants-in-Aid funding priorities for 2019-
2020, as recommended by the Human Relations Commission.
DISCUSSION
The City’s annual Community Development Block Grant (CDBG) and Grants-in-Aid (GIA)
review method provides the City Council and the public with opportunities to provide early input
in the grant award process. Establishing funding priorities is the second step in the procedure,
which helps to ensure an open, inclusive, and fair grant application process. The Human
Relations Commission (HRC) is the advisory body to the City Council on funding priorities and
recommendations for both grant programs.
CDBG and GIA Program Overview
The CDBG program is a federal program administered by the U.S. Department of Housing and
Urban Development (HUD). The County of San Luis Obispo manages this grant and the final
funding decisions must be approved by the Board of Supervisors in the County’s annual Action
Plan. The funding is non-competitive, however all projects that are recommended for funding
must directly or indirectly benefit low-income persons. The City’s GIA program serves to
provide financial support to non-profit organizations that promote the economic and social well-
being of the citizens of San Luis Obispo. Programs requesting funding must be tied explicitly to
at least one funding priority and must be compliant with the HRC’s Statement of Purpose and
Bylaws.
CDBG and GIA Project Decision Process
The four steps in the review process for both grant programs are as follows:
1. HRC “Community Needs Workshop”: The HRC hosted a public hearing on October 3, 2018
to inform the public about the upcoming CDBG and GIA funding cycles, how to apply for
grants, to hear community views on grant funding needs, and to develop funding priorities.
In addition, an Open City Hall online forum was available to those not able to attend the
workshop. Responses were incorporated into the development of funding priorities for both
grant programs. Minutes from this meeting can be found in Attachment A.
2. Council Priority Setting: Council sets CDBG and GIA funding priorities which is scheduled
for November 13, 2018.
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3. HRC Funding Recommendations Hearings: HRC will hold two separate public hearings to
finalize funding recommendations for both CDBG and GIA programs. The hearing for the
CDBG program is scheduled for December 5, 2018. The hearing for the GIA program is
scheduled for May 1, 2019.
4. Council Approval of Final Recommendations: City Council will review and approve final
funding recommendations for both CDBG and GIA programs. The Council will hold a
public hearing for CDBG funding decisions, which is tentatively scheduled for February 19,
2019. Final funding allocations for the GIA program is tentatively scheduled for City
Council review in July 2019.
HRC Recommended CDBG and GIA Funding Priorities for Program Year 2019-2020
After hearing and reviewing public testimony, the Human Relations Commission reviewed the
previously adopted 2018 CDBG and GIA funding priorities and decided to uphold those
priorities for this grant cycle. The HRC’s recommended funding priorities for CDBG are
ranked; whereas the recommendation for GIA include one main area of importance with other
remaining, non-ranked objectives, indicated as follows:
Community Development Block Grant (ranked):
1. Provide emergency and transitional shelter, homelessness prevention and services.
2. Develop and enhance affordable housing for low and very-low income persons.
3. Promote accessibility and/or removal of architectural barriers for the disabled and elderly.
4. Enhance economic development (to include seismic retrofit, economic stability, low and
moderate income jobs).
Grants-in-Aid:
Main Priority: Homeless prevention, including affordable and alternative housing, supportive
services and transitional housing
Other Priorities:
• Hunger and malnutrition prevention
• Supportive physical and mental health services for those in need
• Services for seniors and/or people with disabilities in need
• Supportive and developmental services for children and youth in need
Next Steps
The next step in the CDBG and GIA program cycles is for the Council to consider the HRC’s
recommendations and to affirm or revise the City’s funding priorities. This step is important
because these priorities will guide the HRC’s actions during grant application review. These
priorities will also guide Council’s final funding decisions, when they consider CDBG funding
recommendations in February 2019, and GIA funding recommendations in July 2019.
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ENVIRONMENTAL REVIEW
The project is exempt from environmental review per Section 15061 (b)(3) and Section 15306
(Information Collection) of the CEQA Guidelines. The project is an action to develop priorities
to guide future decisions regarding the allocation of CDBG and GIA funding. Each grant request
approved for funding will be subject to CEQA at the time the project is filed. It can be seen with
certainty that the proposed action to develop priorities for funding will have no significant effect
on the environment and is exempt from environmental review.
FISCAL IMPACT
Decisions made regarding priorities will affect how CDBG and GIA applications are evaluated
and chosen for support. The City receives CDBG funds through the County allotment and, while
this does not directly impact the General Fund, to the extent that projects can be funded through
CDBG, they are not otherwise requesting money from the City’s General Fund. The City has
historically designated a portion of General Fund monies for the GIA program and the priorities
expressed by the Council will influence how those grants will be awarded. The 2018-19 budget
has an amount of $139,885 dedicated to the program. Establishing priorities has no immediate
fiscal impact but is helpful in allocating the CDBG and GIA funding regardless of the amount.
ALTERNATIVES
1. The Council may modify the proposed funding priorities.
2. The Council may continue consideration of funding priorities. Direction should be given
to staff regarding additional information needed to make a decision on priorities. This
alternative is not recommended because the deadline to submit a request for 2019-2020
CDBG Funds is October 19, 2018, and applicants to the program benefit from knowing the
City’s funding priorities in advance.
Attachments:
A - HRC DRAFT Minutes from October 3, 2018
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Item 5
Draft Minutes
Human Relations Commission
Wednesday, October 3, 2018
Regular Meeting of the Human Relations Commission
CALL TO ORDER
A Regular Meeting of the San Luis Obispo Human Relations Commission was called to order on
Wednesday, October 3 at 5:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis
Obispo, California, by Chair Welts.
ROLL CALL
Present: Commissioners Robert Clayton, Bill Crewe, Michael Hopkins, Emily
Rosten, Vice-Chair Carol Sexton (arrived at 5:12 p.m.), and Chair Nancy
Welts
Absent: Commissioner Barrie DuBois
Staff: Cara Vereschagin, Assistant Planner; Xzandrea Fowler, Deputy Director
PUBLIC COMMENT
None
CONSIDERATION OF MINUTES
1. ACTION: MOTION BY CHAIR WELTS, SECOND BY COMMISSIONER HOPKINS
CARRIED 5-0-2 (COMMISSIONER DUBOIS AND SEXTON ABSENT) to approve the
minutes of the Regular Meeting of the Human Relations Commission of September 5, 2018.
----Chair Welts modified the meeting agenda to begin with Commissioner Updates----
COMMISSIONER UPDATES
Commissioner Clayton announced his resignation from the Human Relations Commission.
He expressed his gratitude for the Commission and acknowledged the extraordinary work
that the HRC has been doing in the past few years. He then excused himself from the rest
of the meeting and left the Council Chamber room.
Chair Welts announced that Election Day is November 6, 2018.
PUBLIC HEARINGS
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Item 5
City of San Luis Obispo, Title, Subtitle
Draft Minutes
Human Relations Commission Meeting of October 3, 2018
Page 2
2. Community Needs Workshop
Assistant Planner Vereschagin presented an overview of the Community Development Block
Grant and Grants-in-Aid processes and timelines, which highlighted key dates for the
applicants. She also explained that the Workshop is intended to gather information from the
public, regarding health and human service needs in order to develop funding priorities for the
2019-20 grant cycle.
Chair Welts then opened the public hearing.
Public Comments:
Karen Borges, Stand Strong
Michael Kaplan, Transitions Mental Health Association
Rigo Guzman, People’s Self Help Housing
Anne Wyatt, HomeShareSLO
Chair Welts closed the public hearing.
Chair Welts also acknowledged the two responses from the Open City Hall Forum from Leslie
Orradre representing Jack’s Helping Hand and Juliane McAdam representing Senior Nutrition
Program/Meals That Connect; as well as the written correspondence from Emma Wedell from
Queer Community Action, Research, Education, & Support (QCARES) regarding their online
research survey to better understand the specific mental health needs, experiences, and barriers
to accessing affirming care facing the LGBTQ+ community.
No action was taken on this item.
3. Establish 2019 Community Development Block Grant (CDBG) and 2019-2020
Grants-in-Aid (GIA) Funding Priorities
Chair Welts then opened the public hearing.
Public Comments:
None.
Chair Welts closed the public hearing.
After hearing the public testimony, the Commission agreed that they loved the creative spark
of the community and that their mission to address all the needs was far from completion. The
public testimony also solidified that their work has been heading in a positive direction. The
Commission also expressed a desire to provide input on City policies related to housing and
provided direction to staff to include the HRC in those discussions. Assistant Planner
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Item 5
City of San Luis Obispo, Title, Subtitle
Draft Minutes
Human Relations Commission Meeting of October 3, 2018
Page 3
Vereschagin announced that the HRC’s input on policies would probably be best coupled with
the upcoming update of the City’s Housing Element of the General Plan.
ACTION: MOTION BY CHAIR WELTS, SECOND BY COMMISSIONER CREWE
CARRIED 6-0-1 (COMMISSIONER DUBOIS ABSENT) to approve the recommendation of
the funding priorities for the 2019 CDBG and 2019-20 GIA grant cycles to remain unchanged
from what was previously adopted, described as the following:
Grants in Aid (GIA) 2019-20 Funding Priorities
Main Priority:
• Homeless prevention including affordable and alternative housing, supportive
services, and transitional housing
Other Priorities:
• Hunger and malnutrition support
• Supportive physical and mental health services for those in need
• Services for seniors and/ or people with disabilities in need
• Supportive and developmental services for children and youth in need
Community Development Block Grant (CDBG) 2019 Funding Priorities
1. Provide emergency and transitional shelter, homelessness prevention and
services.
2. Develop and enhance affordable housing for low and very-low income
persons.
3. Promote accessibility and/or removal of architectural barriers for the disabled
and elderly.
4. Enhance economic development (including seismic retrofit, economic stability,
low and moderate income jobs).
STAFF COMMUNICATIONS
4. Agenda Forecast
a. 2017-19 Major City Goals
Assistant Planner Vereschagin explained that the HRC will discuss and set goals pursuant to
the new 2019-21 Financial Plan at the next meeting. She encouraged the Commission to
review the current 2017-19 Major City Goals and Objectives, provided in the Agenda Packet.
ADJOURNMENT
Chair Welts adjourned the meeting at 5:45 p.m. The next Regular meeting of the Human Relations
Commission is scheduled for Wednesday, November 7, at 5:00 p.m., in the Council Hearing
Room, 990 Palm Street, San Luis Obispo, California
APPROVED BY THE HUMAN RELATIONS COMMISSION: XX/XX/2018
Packet Pg. 92
Item 5
Meeting Date: 11/13/2018
FROM: Michael Codron, Community Development Director
Prepared By: John Rickenbach, Contract Planner
Tyler Corey, Principal Planner
SUBJECT: ANNUAL MONITORING OF THE AVILA RANCH DEVELOPMENT
AGREEMENT AND COMMUNITY FACILITIES DISTRICT.
RECOMMENDATION
Receive and file the annual monitoring report for the Avila Ranch Development Agreement and
Community Facilities District.
DISCUSSION
Background
On September 19, 2017, the City Council approved the Development Agreement (DA) between
the City and Avila Ranch, LLC. On October 24, 2017, the City Council approved the Avila
Ranch Community Facilities District (CFD) Resolution of Formation. Both the DA and CFD
require annual monitoring and reporting of activities. Since no activity has occurred on the
project, this report serves as the monitoring report. Once activity begins (anticipated in the next
year) a formal comprehensive monitoring report for the DA and CFD will be provided.
Development Agreement
Implementation of the Avila Ranch project requires substantial new infrastructure to support new
development, most of which is the responsibility of the developer. The approved Development
Agreement (DA) for the project describes the developer’s responsibilities in that regard. Section
5.05.4 of the DA also requires that a financing mechanism be established to ensure that there is
no shortfall to the City’s General Fund as public improvements are made and need to be
maintained by the City in the future. Section 5.05.4(c) of the DA establishes that the effect on
the City’s General Fund be monitored annually relative to possible City expenditures needed to
make up any shortfalls in the construction of various public improvements that are the
responsibility of the developer. Section 5.04.2(i) of the DA establishes that Avila Ranch will pay
the City reasonable staff and consultant time associated with monitoring and compliance of the
Mitigation Monitoring and Reporting Program, the DA, the financing mechanism (i.e. the CFD)
and all other administrative tasks associated with the adoption and implementation of the DA and
project. This provision provides the City with an ongoing funding source that will be used to
ensure the project is developed, operated and maintained consistent with all applicable
requirements.
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Community Facilities District
A Mello-Roos CFD was established and approved on October 24, 2017 (“Avila Ranch
Community Facilities District No. 2017-1”). The CFD is the mechanism that facilitates the
collection of revenue as development occurs, and that revenue is used to construct various public
improvements. Section 10 (ii) of the CFD resolution also has an annual reporting requirement,
similar to the one included in the Development Agreement. The City anticipates that the first
levy will be made to the CFD in fiscal year 2020-21 with occupancy of the first dwelling unit in
the project.
Annual Revenues and Expenditures
For the period October 24, 2017 through October 23, 2018, no revenue was collected through the
CFD because no development has occurred. Similarly, no public improvements have been made
during that time, so no funds have been expended in that regard, either by the developer or the
City. Therefore, there has been no fiscal impact to the City’s General Fund for the period in
question.
ENVIRONMENTAL REVIEW
Annual monitoring of the Avila Ranch DA and CFD are categorically exempt from CEQA
pursuant to CEQA Guidelines Section 15306 (Information Collection) and that the action
otherwise qualifies for a “general rule” exemption pursuant to Section 15061(b)(3), which covers
activities “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.” Annual monitoring does not change
any aspect of the approved Avila Ranch project, nor does it introduce the potential for any new
environmental impacts. Under Section 15306, the Secretary for the California Natural Resources
Agency has concluded that “basic data collection, research…and resource evaluation activities
which do not result in a serious or major disturbance to an environmental resource” are exempt
from CEQA. Therefore, the proposed action is categorically exempt from further analysis under
CEQA.
FISCAL IMPACT
No revenue has been collected through the CFD because no development has occurred.
Similarly, no public improvements have been made, so no funds have been expended.
Therefore, there is no fiscal impact to the City’s General Fund.
ALTERNATIVES
1. Provide direction to staff regarding the annual monitoring report for the Avila ranch DA and
CFD and continue the item to a future meeting.
2. Reject the annual monitoring report for the Avila Ranch DA and CFD. This is not
recommended since annual monitoring is a requirement of the DA and CFD.
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Item 6
Meeting Date: 11/13/2018
FROM: Keith Aggson, Interim Fire Chief
Prepared By: James Blattler, Administrative Analyst
SUBJECT: 2018 ASSISTANCE TO FIREFIGHTERS GRANT
RECOMMENDATIONS
1. Authorize the Fire Department to apply for a grant to the Federal Assistance to Firefighters
Grant (AFG) Program for the amount of $158,155 to acquire replacement portable radios and
associated accessories.
2. Authorize the City Manager, or designee, to execute the grant documents and approve the
budget changes necessary to appropriate the grant amount upon notification that the grant has
been awarded.
DISCUSSION
State and federal grants are occasionally offered to assist local governments with the financial
impacts associated with daily operations and/or mandated programs. The Federal Emergency
Management Agency’s (FEMA) Assistance to Firefighters Grant (AFG) Program is one of these
programs. The purpose of the AFG program is to award one-year grants directly to fire
departments to enhance their abilities with respect to fire and fire-related hazards. For fiscal year
2018, Congress appropriated $315,000,000 in funding for AFGs and is projecting to award
grants to 2,500 applicants.
Background
Portable radios are one of the most important life safety equipment items for a firefighter. They
allow for personnel accountability and critical communication between first responders at the
scene of an emergency and provide a direct link between suppression personnel and the
emergency communication center dispatchers. The lack of dependable portable radios could
immediately jeopardize the safety of both the public and suppression staff.
The Fire Department’s current inventory of portable radios has become obsolete due to age. The
model the Department utilizes was discontinued in 2013 and the manufacturer is running out of
parts to perform even basic repairs and is often not able to perform any repairs. As part of the
2017-19 Financial Plan an Information Technology (IT) project was funded in the amount of
$180,000 to replace public safety hand-held radios in fiscal year 2017-18, but the Police
department’s portion of the project utilized all the funding. The Department participated in a
regional AFG in 2017 to replace the radios but was unsuccessful in that attempt.
Upon grant award, City staff would return to Council for approval of releasing an RFP for 41
replacement portable handheld radios and associated accessories in the amount totaling the grant
award plus the City’s match requirement of 10%. The RFP will require the equipment to meet all
grant requirements and standards necessary for use by a fire agency.
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CONCURRENCES
The Information Technology Division has assessed the Fire Department’s radios and concluded:
the portable radios are past their useful lifespan; they are no longer supported by the
manufacturer for parts or repair; and failure of this equipment will pose a considerable safety risk
to the Department’s suppression personnel.
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 section 15278.
FISCAL IMPACT
If the Fire Department were to receive funding from the AFG Program, the City would have to
match the Federal grant funds equal to 10% of their total project cost share. The total grant
request is $158,155, and if fully funded would require a match from the City of $14,377. The
Fire Department will absorb the match requirement in the operating budget with the approved
general carryover monies from the 2017-18 budget.
ALTERNATIVE
The Council could decide not to pursue the grant monies. This is not recommended as fire
service grant opportunities are limited and the grant funds would only serve to enhance the
effectiveness of the Fire Department while increasing fiscal sustainability for the City.
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Item 7
Meeting Date: 11/13/2018
FROM: Michael Codron, Community Development Director
Prepared By: Xzandrea Fowler, Deputy Director – Long Range Planning
SUBJECT: AMENDMENT OF RESOLUTION OF INTENT TO APPLY THE CAPITAL
FACILITIES FEE PROGRAM AND WATER AND WASTEWATER
CAPACITY AND CONNECTION PROGRAM DEVELOPMENT IMPACT
FEES TO NEW DEVELOPMENT
RECOMMENDATION
Adopt a Resolution (Attachment A) to Amend Previously Adopted Resolution No. 10849
(Attachment B) to modify the eligibility criteria for establishing which development review
projects are exempt from participating in the newly adopted Capital Facilities Fee Program and
the Water and Wastewater Capacity and Connection Fee Program based on the date of building
permit application.
DISCUSSION
Background
On November 21, 2017, the City Council adopted Resolution No.10849 (2017 Series) to require
applicable development projects to participate in the pending Capital Facilities Fee Program and
the Water and Wastewater Capacity and Connection Fee Program. Council adopted that
resolution to minimize uncertainty amongst the development community regarding unanticipated
impacts to the fiscal feasibility of pending development projects, and to reduce a “rush the
planning counter” response from developers to secure project approval or vested rights status
before the new development impact fees took effect.
The referenced development fee programs were adopted via Resolution [Resolutions No. 10879
(2018 Series) and No.10880 (2018 Series) by City Council on April 3, 2018, and the applicable
development impact fees went into effect on July 1, 2018. The adopted Resolution of Intent and
the extensive outreach campaign were successful at preventing a “rush the planning counter”
response by developers to secure project approval or vested rights prematurely, because
developers received advanced notice of when and how the new development impact fees would
be applied. The resolution of intent clearly stated that the new development impact fees would be
applicable to any project that received building permits on or after the fees went into effect,
unless the development project met one of the specified exemptions:
In accordance with Resolution No. 10849 (2017 Series), the Developer shall pay any and all
development impact fees, including water and wastewater capacity and connection fees, in the
amount in effect at the time of issuance of building permit. The following is a list of development
review projects that would be exempt from the resolution:
a) Development projects that are currently entitled under a vesting tract map that specified
which development impact fees would be applied to the project;
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b) Ministerial development review projects that receive building permit issuance prior to the
adoption of the updated development impact fee programs; and
c) Discretionary development review projects that are currently in process and will have
building permits issued for that development prior to the establishment of the updated
development impact fee programs.
Limitations with Current Resolution of Intent Enforcement Approach
At the time of adoption of the Resolution of Intent, staff believed that the EnerGov permit
tracking software system that the City uses to process all development permits (planning and
building) had the functionality to accurately track and apply the applicable development impact
fees based on both building permit application date and building permit issuance date. However,
after the adoption of the new development impact fee programs the software developer informed
staff that the software was unable to apply development impact fees by either building permit
application date or building permit issuance date, and that the software couldn’t discern between
the two without manual manipulation of the building permit on a case by case basis which is
both time consuming and prone to error.
When building permit applications are entered into the EnerGov system development impact fees
are automatically generated in the system and a cost estimate of the impact fee is provided to the
applicant, but payment of fees isn’t due until the building permit is issued. Typically, when the
building permit is issued the impact fees due are the same amount as the fee estimate that was
provide at building permit application. There are a few exceptions when the fees do change, such
as the project description changes (e.g., building becomes larger or changes use), fee credits are
applied (e.g., credit for existing structure square footage or uses), and annual CPI adjustments
(which are applied to fees every July 1st).
The new development impact fees are calculated in a completely different manner, which was
necessary to accommodate the tiered development impact fee system that Council adopted to
incentivize the development of more affordable residential products. Since the adoption of the
new development impact fees, staff has been manually re-calculating the development impact
fees for projects that applied for building permits before the new impact fees were adopted but
didn’t have building permits that were ready for issuance until after the new impact fees went
into effect on July 1, 2018.
To adjust the development impact fees for those projects, staff must manipulate the fee estimates
that were automatically generated in the system at the time of building permit application. When
fees are manually manipulated in this manner, EnerGov cannot track how the manipulated fees
were derived. This process greatly reduces accounting transparency and makes it extremely
difficult to identify potential accounting errors and increases the likely hood that accounting
errors will occur. The unintended consequences associated with this method are that developers
could be over or undercharged development impact fees, which could negatively impact the
City’s development impact fee revenue to pay for associated capital improvements and services
associated with new development, and potentially expose the City to legal challenge for charging
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fees that exceed those identified in the associated nexus studies.
Proposed Resolution of Intent Enforcement Approach
Staff has explored alternative methods to address this issue and has identified that the best
approach would be to work within the limitations of the EnerGov system by applying the same
development impact fee structure that was in place at building permit application for the project
to continue to be applied at building permit issuance. This would eliminate the need for manual
calculation of development impact fees at building permit issuance and would maintain the
impact fee calculation transparency and tracking that exist within the EnerGov system. To apply
this approach the exemption criteria described in the Resolution of Intent would require
modification. Provided below are the proposed text changes:
The following is a list of development review projects that would be exempt from
the resolution:
a) Development projects that are currently entitled under a vesting tract map that
specified which development impact fees would be applied to the project;
b) Ministerial development review projects that receive submitted building permit
issuance applications prior to the adoption of the updated development impact fee
programs; and
c) Discretionary development review projects that are currently in process and
will have submitted building permits issued applications for that development
prior to the establishment of the updated development impact fee programs.
CONCURRENCES
The proposed resolution and condition of approval language has been reviewed by the City
Attorney.
ENVIRONMENTAL REVIEW
Modification of rates and charges by public agencies is statutorily exempt from the California
Environmental Quality Act (CEQA) under Section 15273 of the Public Resources Code because
changes in fees is not intended to fund expansion of capital projects not otherwise evaluated
under CEQA.
FISCAL IMPACT
The proposed text amendment of previously adopted Resolution 10849 (2017 Series) to modify
the criteria of development review projects that would be eligible for exemption from the
application of the newly adopted development impact fee programs will help the City to
accurately forecast the amount of development that will contribute to the potential impact fee
revenue generation and will provide assurance that applicable development project will
contribute their fair share of the cost to provide infrastructure/facility/service benefits that are
necessary to serve that new development.
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Accurate forecasting of potential impact fee revenue generation also helps the City identify the
amount of funding that will need to come from other funding sources in order to fully fund the
identified facilities, improvements, and services that are covered under the development impact
fee programs. When those potential impact fee revenues fall short additional pressure is put on
the General Fund to cover the funding gap.
The anticipated fiscal impact of this modification is expected to be minumal because the revenue
forecast considered when the Capital Facilities Fee Program was adopted did not include
development review projects that already had or were expected to have building permit
applications submitted prior to the effective date of the newly adopted development impact fee
programs. Those revenue forecast included future development associated with the buildout of
existing Specific Plan Areas (Orcutt Area, Margarita Area, and Airport Area), all development
associated with San Luis Ranch, Avila Ranch, Froom Ranch (if approved as proposed), buildout
of Special Focus Areas identified in the Land Use Element of the General Plan and infill
development throughout the City.
ALTERNATIVES
1. Not adopt the resolution or amend the existing exemption language that currently applies to
development review projects. This is not recommended because the City doesn’t have a
method in place to ensure that the development impact fees that would be charged to those
projects has been accurately calculated.
Attachments:
a - Amendment to Resolution of Intent
b - R-10849 Intent to Apply Pending CFFP and Water and Wastewater CCFP
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R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING PREVIOUSLY ADOPTED
RESOLUTION NO. 10849 (2017 SERIES) AND MODIFYING THE
ELIGIBILITY CRITERIA FOR ESTABLISHING WHICH
DEVELOPMENT REVIEW PROJECTS ARE EXEMPT FROM
PARTICIPATING IN THE NEWLY ADOPTED CAPITAL FACILITIES
FEE AND THE WATER AND WASTEWATER CAPACITY AND
CONNECTION FEE PROGRAMS BASED ON THE DATE OF BUILDING
PERMIT APPLICATION
WHEREAS, on November 21, 2017, the City Council adopted Resolution No.10849
(2017 Series) requiring all applicable development review projects participate in then pending, but
now adopted, Capital Facilities Fee and the Water and Wastewater Capacity and Connection
Programs. The Resolution provided notice to all property owners that it was the City’s intent to
adopt updated development impact fee programs by March 2018, and that it is the City’s
expectation that all applicable development projects that are issued building permits once those
impact fees have been published pay those updated fees, since they will benefit from the
improvements, facilities, and services that will be covered by those fee programs. In addition, the
Resolution contained condition of approval language to be added to applicable development
projects to provide additional clarification as to which fees that development project will be subject
to:
In accordance with Resolution No.10849 (2017 Series), the Developer shall pay
any and all development impact fees, including water and wastewater capacity and
connection fees, in the amount in effect at the time of issuance of building permit.
However, Resolution No.10849 (2017 Series) also exempted the following development review
projects from paying the updated fees:
a) Development projects that are entitled under a vesting tract map that specified which
development impact fees would be applied to the project;
b) Ministerial development review projects that receive building permit issuance prior to
the adoption of the updated development impact fee programs; and
c) Discretionary development review projects that are currently in process and will have
building permits issued for that development prior to the publication of the updated
development fee programs.
WHEREAS, on April 3, 2018, the City Council adopted Resolution Nos.10879 and 10880
(2018 Series) which created the current Capital Facilities Fee and Water and Wastewater
Development Impact Fee programs;
WHEREAS, the City’s development review tracking software is unable to provide the
level of functionality needed in order to fully implement Resolution No. 10849 (2017 Series).
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Resolution No. _____ (2018 Series) Page 2
Specifically, the City’s software generates all fees due at building permit issuance at the time the
permit was submitted, not at the time of issuance; and
WHEREAS, by this Resolution, the City intends on modifying Resolution No. 10849
(2017 Series) so that projects which are subject to the updated Capital Facilities Fee and Water
and Wastewater Development Impact Fees are consistent with the functionality of the City’s
development review tracking software.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Action. Resolution No. 10849 (2017 Series) is hereby amended insofar as
the following list of development review projects are exempt from the requirements of Resolution
No. 10849 (2017 Series):
a) Development projects that are entitled under a vesting tract map that specified which
development impact fees would be applied to the project;
b) Ministerial development review projects that submitted building permit applications
prior to the adoption of the updated development impact fee programs; and
c) Discretionary development review projects that submitted building permits
applications for that development prior to the establishment of the updated
development fee programs.
The modified condition of approval language as set forth below, is hereby approved which shall
be applied to all discretionary development review projects that were in process between the date
of adoption of Resolution No. 10849 (2017 Series) and the adoption of Resolution No.10879 (2018
Series) and Resolution No.10880 (2018 Series) which established the updated development impact
fee programs.
In accordance with Resolution No.10489 (2017 Series) and as amended with
Resolution No. _____(2018 Series), the Developer shall pay any and all
development impact fees, including water and wastewater capacity and connection
fees, in the amount in effect at the time of issuance of building permit.
SECTION 2. Upon the effective date of this Resolution, the Community Development
Director is hereby authorized and directed to apply the condition of approval language to all
applicable discretionary development review projects that are currently in process or will be in
process between now and the establishment of the updated development impact fee programs,
unless exempt from this Resolution as described above.
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Resolution No. _____ (2018 Series) Page 3
SECTION 3. CEQA determination. The City Council herby finds that the modification of
rates and charges by public agencies is statutorily exempt from the California Environmental
Quality Act (CEQA) under section 15273 of the Public Resources Code because changes in fees
is not intended to fund expansion of capital projects not otherwise evaluated under CEQA.
Upon motion of _______________________, seconded by _______________________, and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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RESOLUTION NO. 10849 (2017 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, SETTING FORTH INTENT TO APPLY THE
PENDING CAPITAL FACILITIES FEE PROGRAM AND WATER AND
WASTEWATER CAPACITY AND CONNECTION FEE PROGRAM TO
NEW DEVELOPMENT
WHEREAS, in October 2012, the City Council adopted an Economic Development
Strategic Plan (EDSP). The EDSP was updated in 2015. The primary goal of the plan is to help
create head of household jobs, and the Plan recognizes how important infrastructure financing is
to accomplish this goal; and
WHEREAS, in April 2013, the City Council authorized staff to hire a consultant to
undertake an infrastructure financing analysis that would include a series of study session with the
Council, as an implementation measure of the EDSP. The purpose of these study sessions was to
provide the Council and the community with information, context and tools to support informed
decision making and direction as many as needed; and
WHEREAS, on January 21, 2014, the City Council held Study Session #1: Introduction
and Background. This session covered the current trends in municipal infrastructure financing,
gave an overview of development impacts fee and reviewed the development of the City's existing
fee programs; and
WHEREAS, on February 18, 2014, the City Council held Study Session #2: Economic
and Policy Implications of Development Impact Fees. This session highlighted the tools available
to the City and the policy implications and trade-offs associated with the various options; and
WHEREAS, on March 18, 2014, the City Council held Study Session #3: Direction for
updating the City's Development Impact Fees. This session focused on the path forward, and City
Council provided direction to staff, based on the first two sessions and accompanying documents,
to proceed with the update of the City's development impact fees, to integrate fees into and
prioritize projects in the City's Capital Improvement Program, and to explore new infrastructure
funding strategies to support the objectives of the Economic Development Strategic Plan with
particular focus on creating head of household jobs in San Luis Obispo; and
WHEREAS, on August 16, 2016, the City Council held a fourth Study Session: Public
Infrastructure Financing Framework and Draft Policies. This session provided a framework for a
comprehensive approach to funding the City's public facilities and infrastructure improvements
and recommended draft policies for City Council consideration. The Framework provides a
systematic way of considering funding and financing options so that the City is able to construct
needed public facilities and infrastructure in a manner that funds facilities and infrastructure
needed to maintain and enhance the City's quality of life for current and future residents,
employees and visitors, makes efficient use of available funding sources and financing
mechanisms, implements General Plan policy, is fair and equitable with respect to incidence of
burden (who pays), and is consistent with economic development objectives; and
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Resolution No. 10849 (2017 Series) Page 2
WHEREAS, on August 16, 2016, the City Council held a public hearing and authorized
staff to issue a Request for Proposal (RFP) for the preparation of a Public/Capital Facilities Impact
Fee Program Nexus Study. The preparation of a Nexus Study was identified in the 2015-17
Financial Plan as an Objective that supports Major City Goals in Housing, Multi -Modal
Transportation, as well as supports the other important objective of Downtown. It also continues
implementation of the EDSP strategy to reduce barriers to job creation, which was part of the
Major City Goal in Economic Development in the 2011-13 Financial Plan; and
WHEREAS, on November 23, 2016, the City requested proposals for consultant services
to prepare the City's Capital Facilities Fee Program Nexus Study per Specification No. 91356. The
scope of work for the Study included a Citywide Capital Facilities Fee Program with supplemental
area -specific fees as needed and only if supported by nexus logic. The Capital Facilities Fee
Programs scope of work also included categorical subcomponents for Transportation, Parkland
and Park Improvements, General Government, and Public Safety; and
WHEREAS, on April 21, 2017, pursuant to said request Economic & Planning Systems.
Inc. submitted a proposal that was accepted by the city for said project; and
WHEREAS, on June 29, 2017, the City conducted outreach with stakeholders in the
development community at a Developer's Roundtable meeting. At this meeting the study
objectives and approach were discussed; and
WHERAS, on October 5, 2017, the City conducted outreach with stakeholders in the
community at the San Luis Chamber of Commerce, Economic Development Committee meeting,
and with stakeholders in the development community at a Developer's Roundtable meeting. At
these meetings the preliminary maximum fees calculated as part of the Capital Facilities Fee
Program Nexus Study were discussed; and
WHEREAS, on October 11, 2017, the Planning Commission held a study session to
review the preliminary results of the Capital Facilities Fee Program Nexus Study and the Water
and Wastewater Capacity and Connection Fee Program Study. During the study session the
development community expressed concern that the pending changes to the City's development
impact fee programs would create uncertainty for the development community which could result
in unanticipated impacts to the fiscal feasibility for development projects; and
WHEREAS, On October 17, the City Council held a study session to review the
preliminary results of the Capital Facilities Fee Program Nexus Study and the Water and
Wastewater Capacity and Connection Fee Program Study. During the study session, the
development community expressed concern that the pending changes to the City's development
impact fee programs would create uncertainty for the development community which could result
in unanticipated impacts to the fiscal feasibility for development projects. The City Council
provided staff with guidance regarding policy considerations and directed staff to return with more
analysis of the fee burden feasibility, impacts to affordable housing objectives, identification of
alternative infrastructure funding sources, refinement of project improvement lists,
implementation phasing and additional community outreach; and
R 10849
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Resolution No. 10849 (2017 Series) Page 3
WHEREAS, with any new or proposed increase in development impact fees, agencies
typically encounter a "rush the planning counter" by developers to secure project approval or
vested rights status before the new fees take effect. To address this concern, staff recommended
the adoption of this Resolution that provides notice that it is the City's intent to adopt updated
development impact fee programs by March 2018, and that it is the expectation that all applicable
development projects that are issued building permits once those impact fees have been established
will be expected to pay those fees, since they will benefit from the improvements, facilities, and
services that will be covered by those fees. In addition, staff recommends that the following
condition of approval language be added to applicable development projects to provide additional
clarification as to which fees that development project will be subject to:
In accordance with Resolution No. 10849 (2017 Series), the Developer shall pay
any and all development impact fees, including water and wastewater capacity and
connection fees, in the amount in effect at the time of issuance of building permit.
The following is a list of development review projects that would be exempt from the resolution:
a) Development projects that are currently entitled under a vesting tract map that specified
which development impact fees would be applied to the project;
b) Ministerial development review projects that receive building permit issuance prior to
the adoption of the updated development impact fee programs; and
c) Discretionary development review projects that are currently in process and will have
building permits issued for that development prior to the establishment of the updated
development impact fee programs.
WHEREAS, the City Council finds that the condition of approval language is consistent
with the objectives, policies, and strategies specified in the Economic Development Strategic Plan
and the General Plan of the City of San Luis Obispo, as described below, and as further detailed
in the accompanying City Council staff report prepared for this action:
a) Costs of Growth — Land Use Policy 1.13.9: The city shall require the costs of public
facilities and services needed for new development to be borne by the new
development, unless the community chooses to help pay the costs for certain
development to obtain community -wide benefits. The City shall consider a range of
options for financing measures so that new development pays its fair share of costs of
new service and facilities which are required to serve the project, and which are
reasonably related to the new growth attributable to the development.
b) Economic Development Strategic Plan Policy IA: Ensure that the fair -share structure
includes appropriate percentages for each party bearing a portion of the infrastructure
costs. Utilize a consultant to lead a series of study sessions with the City Council on
the City's impact fee stricture guided by existing policies and options for the City to
consider related to how impact fees are determined, calculated, and applied.
c) Furthermore, the condition of approval language is consistent with the Land Use and
Circulation Element overall land use policies by preserving a funding source for city-
wide community benefits, including but not limited to, financial support for
transportation, parks and recreation, multi -modal infrastructure, public safety, and
water and wastewater infrastructure in the City.
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Resolution No. 10849 (2017 Series) Page 4
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein
by this reference.
SECTION 2. Action. Unless exempt as set forth below, all building permits for new
development within the City shall be subject to the new or increased development impact fees as
described in the Recitals above. The condition of approval language is hereby approved and shall
be added to all discretionary development review projects that are currently in process or will be
in process between the date of this resolution and the adoption of updated development impact fee
programs. Projects exempt from this requirement are as follows:
a) Development projects that are currently entitled under a vesting tract map;
b) Ministerial development review projects that receive building permit issuance prior to
the adoption of the updated development impact fee programs; and
c) Discretionary development review projects that are currently in process and will have
building permits issued for that development prior to the establishment of the updated
development impact fee programs.
SECTION 3. Upon the effective date of this Resolution, the Community Development
Director is hereby authorized and directed to apply the condition of approval language to all
applicable discretionary development review projects that are currently in process or will be in
process between now and the adoption of the updated development impact fee programs, unless
exempt from this Resolution as described above. In accordance with Government Code §
66474.2(b)(2), the City Clerk is hereby directed to publish notice of this Resolution per
Government Code section 65090(a) describing the nature of the proposed changes to. the City's
development impact fee program. The notice shall be subject to the approval of the City Attorney.
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Resolution No. 10849 (2017 Series) Page 5
SECTION 3., CEQA determination. The City Council herby finds that the modification of
rates and charges by public agencies is statutorily exempt from the California Environmental
Quality Act (CEQA) under section 15273 of the Public Resources Code because changes in fees
is not intended to fund expansion of capital projects not otherwise evaluated under CEQA.
Upon motion of Vice Mayor Rivoire, seconded by Council Member Christianson, and on the
following vote:
AYES: Council Members Christianson, Gomez and Pease,
Vice Mayor Rivoire and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 21' day of November, 2017.
Harmon
ATTEST:
Carrie Gallagher
City Clerk
APPROVED AS -TO FORM:
Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my Baal aiiLl affixed the official seal of the City
of San Luis Obispo, California, this day of Df[? CJS , 2017.
Carrie Gallagher
City Clerk
Packet Pg. 108
Item 8
Meeting Date: 11/13/2018
FROM: Michael Codron, Community Development Director
Prepared By: Rachel Cohen, Associate Planner
SUBJECT: REQUEST FOR ALTERNATIVE INCENTIVE TO PROVIDE FOR
AFFORDABLE HOUSING THAT INCLUDES A DENSITY BONUS
INCREASE OF 43 PERCENT, WHERE 35 PERCENT IS NORMALLY
ALLOWED, FOR 3680 BROAD STREET (CITY FILE NO. AFFH-1902-2018).
RECOMMENDATION
Adopt a Resolution (Attachment A) approving the alternative incentive to provide for affordable
housing that include a density bonus increase of 43 percent, where 35 percent is normally
allowed.
DISCUSSION
Applicant HASLO
Representative Scott Smith
Zoning Service Commercial with a special
considerations overlay (C-S-S)
General Plan Services Manufacturing
Site Area 1.6 acres
Environmental
Status
Categorically Exempt from
environmental review under
Section 15332, Class 32, In-fill
Development Projects, of the
CEQA Guidelines.
In June 2018, HASLO, the applicant, requested a modification to a mixed-use affordable housing
project located at 3680 Broad Street within the C-S-S zone. In April and May 2015, the Planning
Commission (PC) and the Architectural Review Commission (ARC) reviewed and approved the
mixed-use project. The approved project included a 4,400 square foot commercial building, two,
three-story structures with 46 affordable one, two, and three-bedroom units, and a 29 percent
density bonus.
The applicant has requested to modify the 4,400 square foot commercial structure to include nine
market rate dwelling units and 3,425 square feet of commercial space (ARCH-1638-2018). The
Director determined that the modifications were minor and approved the proposed modifications
to the plan (Attachment B, Project Plans and Attachment C, Director’s Approval Letter). The
Packet Pg. 109
Item 9
additional nine units expand the original project density bonus request of 29 percent to 43
percent. The applicant is requesting an alternative incentive for a 43 percent density bonus,
where 35 percent is normally allowed. If approved the project would be 84 percent affordable.
Zoning Regulations Chapter 17.140 Affordable Housing Incentives states that when an applicant
is requesting an alternative incentive for affordable housing, the incentives shall be reviewed by
the City Council. In order to deny the requests, State law (Government Code Section 65915)
requires specific findings based on substantial evidence of any of the following:
• The incentive or concession does not result in identifiable and actual cost reductions for
affordable housing costs;
• The incentive would have specific adverse impact1 upon health, safety, or the physical
environment on any real property that is listed in the California Register of Historical
Resources;
• The incentive would be contrary to state of federal law.
This provision of the Zoning Regulations is proposed to be modified to provide the Planning
Commission with the authority to approve affordable housing incentives, however, the new
provision will not go into effect unless approved by the City Council on November 27, 2018.
Background
On April 8, 2015, the Planning Commission reviewed and approved a mixed-use affordable
housing project located at 3680 Broad Street within the C-S-S zone. The project included a 4,400
square foot commercial building, two, three-story residential structures with 46 affordable one,
two, and three-bedroom units and a 29 percent density bonus (USE-0809-2015). As a 100%
affordable housing development, the applicant is entitled up to a 35 percent density bonus under
State law.
On May 4, 2015, the Architectural Review Commission (ARC) held a hearing to review the
design and architecture of the proposed project as it relates to the surrounding neighborhood
(ARCH-0810-2015). The ARC unanimously voted to approve the project.
In March 2017, the applicant received their building permit for phase 1 of t he project, the
construction of two, three-story residential structures. Final sign-off on the construction of the
residential structures is anticipated by the beginning of November 2018.
In June 2018, the applicant requested a modification to the 4,400 square foot commercial
building to include nine market rate dwelling units and 3,425 square feet of commercial space.
The additional nine units expand the original project density bonus request of 29 percent to 43
percent. On October 1, 2018, the Director of Community Development reviewed the proposed
modification to the commercial building for consistency and compatibility with the previously
approved use permit and architectural plans (ARCH-1638-2018). The Director determined that
the modifications were minor and approved the proposed modifications to the plan (Attachment
B, Project Plans and Attachment C, Director’s Approval Letter), subject to the approval of an
1 Gov. Code Section 65589.5 defines a “specific adverse impact” as a “specific, adverse impact” means a
significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or
safety standards, policies, or conditions as they existed on the date the application was deemed complete.
Packet Pg. 110
Item 9
increase in the density bonus to 43 percent.
Project Analysis
The City of San Luis Obispo has recognized housing as an important issue within the City. The
City’s 2015-17 Financial Plan identifies affordable housing as a Major City Goal. The City’s
Housing Element includes numerous policies and programs that support incentives, such as
density bonuses, to provide housing for moderate, low, very low and extremely low-income
households.
1. Affordable Housing Alternative Incentives
Consistent with State law requirements, City Zoning Regulations Chapter 17.140.070 states that
three incentives or concessions shall be granted for housing developments that include at least 30
percent for lower income households. The proposed project provides 84 percent of the units to be
dedicated to low income (or lower) households. Chapter 17.140 of the Zoning Regulations
(Affordable Housing Incentives) outlines various incentives for affordable housing projects that
developers can request. Some of the alternative incentive examples called out in the Chapter
includes granting of a density bonus in excess of State allowances or allowing a reduction in site
development standards.
Alternative Incentive Request: Granting a density bonus in excess of 35 percent
The applicant is requesting an alternative incentive to allow a 43 percent density bonus, where 35
percent is normally allowed. The applicant would be providing a total of 55 units on the site.
Table 1 provides a breakdown of the affordability of the units.
Table 1: Unit Breakdown of Affordability
Unit Type Number of Units % of Area Median Income (AMI)
1 Bedroom 10 60%
1 Bedroom 2 50%
2 Bedrooms 13 60%
2 Bedrooms 2 50%
3 Bedrooms 13 60%
3 Bedrooms 2 50%
2 Bedrooms 3 60%
Studios 4 Market Rate
1 Bedroom 5 Market Rate
Packet Pg. 111
Item 9
2. Housing Element
The 2015 Housing Element (HE) outlines a series of goals and policies to encourage the
development of housing production for all financial strata of the City's population. The City has
outlined in HE Goal 2 that housing should be in-line with the Regional Housing Needs
Allocation, for the 2014 - 2019 planning period (see Table 2). The HE further states that
affordable housing units should be intermixed and not segregated by economic status and
encourages housing development that meets a variety of special needs, including large families,
single parents, disabled persons, the elderly, students, veterans, the homeless, or those seeking
congregate care, group housing, single-room occupancy or co-housing accommodations,
utilizing universal design (HE Policy 8.1). The Housing Element also states that preference for
residential be given over commercial uses (Policy 11.1).
In addition, the Housing Element further states:
• That the City should continue to consider increasing residential densities above state density
bonus allowances for projects that provide housing for low, very low and extremely low-
income households (Policy 2.17); and
• That the City should continue to incentivize affordable housing development with density
bonuses, parking reductions and other development incentives, including City financial
assistance (Program 6.19).
Table 2: Housing Element Table 6: Remaining RHNA need based on dwelling units
approved, under construction or built (January 1, 2014 to December 31, 2017)
Income Category
A B A-B
New
Construction
Need
(RHNA)
Dwelling Units
Approved, Under
Construction or Built
Remaining RHNA
Need, Dwelling
Units
Very Low and Extremely-Low
(<31-50% of AMI)
285 96 189
Low (51-80% of AMI) 179 27 152
Moderate (81-120% of AMI) 202 10 192
Above Moderate (>120% of
AMI)
478 5901 -112
TOTAL RHNA UNITS 1,144 7231 421
1No credit allowed for the number of above moderate units built that exceed RHNA.
3. Major City Goal
Housing was determined to be one of the most important, highest priority goals for the City to
accomplish over 2015-17 financial year. The goal states: Implement the Housing Element,
facilitating workforce, affordable, supportive and transitional housing options, including support
for needed infrastructure within the City’s fair share.
Packet Pg. 112
Item 9
ENVIRONMENTAL REVIEW
The project is categorically exempt under Class 32, In-Fill Development Projects, Section 15332
of the CEQA Guidelines, because the project is consistent with General Plan policies for the land
use designation and is consistent with the applicable zoning designation and regulations. The
project site occurs on a property of no more than five acres substantially surrounded by urban
uses that has no value as habitat for endangered, rare or threatened species as the site is located
on an existing developed property and is served by required utilities and public services.
FISCAL IMPACT
When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which
found that overall the General Plan was fiscally balanced. Accordingly, since the proposed
density bonus request is consistent with the General Plan, it has a neutral fiscal impact.
ALTERNATIVES
1. Deny the request for a 43 percent density bonus and provide direction to staff to return with
substantial evidence to support findings that the request is inconsistent with alternative or
additional incentive regulations within the municipal code. This is not recommended because
the request for incentives is consistent with State and City housing regulations.
2. Continue the project and provide direction to the applicant to revise the project for
consistency with applicable City regulations.
Attachments:
a - Draft Resolution
b - Project Plans
c - Director's Approval Letter
Packet Pg. 113
Item 9
RESOLUTION NO. _______ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE ALTERNATIVE
INCENTIVES TO PROVIDE FOR AFFORDABLE HOUSING THAT
INCLUDES A DENSITY BONUS OF 43 PERCENT, WHERE 35 PERCENT
IS NORMALLY ALLOWED, AS REPRESENTED IN THE CITY COUNCIL
AGENDA REPORT AND ATTACHMENTS DATED NOVEMBER 13, 2018.
THE PROJECT IS CATEGORICALLY EXEMPT FROM
ENVIRONMENTAL REVIEW (3680 BROAD STREET) (AFFH-1902-2018)
WHEREAS, on September 24, 2018 the Housing Authority of San Luis Obispo
(“HASLO”), submitted an application to request alternative incentives for affordable housing that
include a forty-three (43) percent density bonus, where 35 percent is normally allowed; and
WHEREAS, on April 8, 2015, the Planning Commission of the City of San Luis Obispo
conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis
Obispo, California, for the purpose of approving the use permit for a mixed-use project consisting
of 4,400 square feet of commercial space and 46 affordable one, two, and three-bedroom units
(USE-0809-2015); and
WHEREAS, on May 4, 2015, the Architectural Review Commission of the City of San
Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street,
San Luis Obispo, California, for the purpose of approving the design of a mixed-use project
consisting of 4,400 square feet of commercial space and 46 affordable one, two, and three-bedroom
units (ARCH-0810-2015); and
WHEREAS, on October 1, 2018, the Community Development Director of the City of
San Luis Obispo reviewed a modification to the project to modify the commercial structure to
include nine market rate units and 3,425 square feet of commercial space (ARCH-1638-2018); and
WHEREAS, on November 13, 2018, the City Council of the City of San Luis Obispo
conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis
Obispo, California, pursuant to a proceeding instituted under AFFH-1902-2018; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing, and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
Packet Pg. 114
Item 9
Resolution No. _______________ (2018 Series) Page 2
R ______
SECTION 1. Findings. Based upon all the evidence, the City Council makes the
following findings:
1. The project will not be detrimental to the health, safety, or welfare of those working
or residing in the vicinity since the proposed project is consistent with the site’s zoning
designation, the approved Planning Commission use permit (USE-0809-2015) and
will be subject to conformance with all applicable building, fire, and safety codes.
2. The proposed project will provide quality affordable housing consistent with the intent
of Chapter 17.90 of the Municipal Code.
3. The request for a density bonus is consistent with the intent of Housing Element
policies 2.17, 8.1, 11.1 and program 6.19, and the alternative affordable housing
incentives outlined in Section 17.90.060 of the City’s Zoning Regulations.
SECTION 2. Environmental Review. The project is categorically exempt under Class
32, In-Fill Development Projects, Section 15332 of the CEQA Guidelines, because the project is
consistent with General Plan policies for the land use designation and is consistent with the
applicable zoning designation and regulations. The project site occurs on a property of no more
than five acres substantially surrounded by urban uses that has no value as habitat for endangered,
rare or threatened species as the site is located on an existing developed property and is served by
required utilities and public services.
SECTION 3. Action. The City Council does hereby grant final approval of the project
including the request for alternative incentives to provide for affordable housing that includes a
density bonus of 43 percent, where 35 percent is normally allowed (AFFH-1902-2018), subject to
the following conditions:
Planning Department
1. Final project design and construction drawings shall be in substantial compliance with
the project plans approved by the Community Development Director and the City
Council. A separate full-size sheet shall be included in working drawings submitted
for a building permit that list all conditions, and code requirements of project approval
as Sheet No. 2 (ARCH-1638-2018 & AFFH-1902-2018). Reference should be made
in the margin of listed items as to where in plans requirements are addressed.
2. Prior to the issuance of building permits, the City and the project owners shall enter
into an Affordable Housing Agreement in a form subject to the approval of the City
Attorney and Community Development Director, to be recorded in the office of the
county recorder. The agreement shall specify mechanisms or procedures to assure the
continued affordability and availability the affordable units, to the satisfaction of the
Community Development Director and City Attorney. The agreement shall also set
forth those items required by Section 17.90.030(B) or any alternative incentives
granted pursuant to Section 17.90.060. The agreement shall run with the land and shall
be binding upon all heirs, successors or assigns of the project or property owner.
Packet Pg. 115
Item 9
Resolution No. _______________ (2018 Series) Page 3
R ______
Indemnification
3. The Owner/Applicant shall defend, indemnify and hold harmless the City or its agents
or officers and employees from any claim, action or proceeding against the City or its
agents, officers or employees, to attack, set aside, void, or annul, in whole or in part,
the City's approval of this project.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 13th day of November 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Teresa Purrington
City Clerk
Packet Pg. 116
Item 9
IRON WORKS
MIXED-USE
THE IRON WORKS MIXED-USE PROJECT PROPOSES A NEW 8,243 SQUARE
FOOT, 2-STORY MIXED-USE BUILDING COMPRISING 3,425 SQUARE FEET
OF FUTURE COMMERCIAL SUITES, AND 9 ONE-BEDROOM AND STUDIO
APARTMENTS.
ENTITLEMENTS PACKAGE - ARC-MI
Packet Pg. 117
Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site T1.0
PROJECT DIRECTORY
OWNER:
HOUSING AUTHORITY OF SAN LUIS OBISPO CONTACT:MICHAEL BURKE
487 LEFF STREET PH:805.594.5330
SAN LUIS OBISPO, CA 93401 EMAIL: mburke@haslo.org
ARCHITECT:
TEN OVER STUDIO, INC.CONTACT:KARL LUNDEEN
539 MARSH STREET PH:805.541.1010
SAN LUIS OBISPO, CA 93401 EMAIL: karll@tenoverstudio.com
SURVEY:
ABOVE GRADE CONTACT:SCOTT STOKES
245 HIGUERA STREET PH:805.548.1172
SAN LUIS OBISPO, CA 93401 EMAIL: scott@abovegradeengineering.com
CALIFORNIA CODE REFERENCES
THIS PROJECT SHALL COMPLY WITH CURRENT APPLICABLE CODES & ORDINANCES
2016 CALIFORNIA BUILDING STANDARDS ADMINISTRATIVE CODE
2016 CALIFORNIA BUILDING CODE
2016 CALIFORNIA ELECTRICAL CODE
2016 CALIFORNIA MECHANICAL CODE
2016 CALIFORNIA PLUMBING CODE
2016 CALIFORNIA ENERGY CODE
2016 CALIFORNIA HISTORICAL BUILDING CODE
2016 CALIFORNIA FIRE CODE
2016 CALIFORNIA EXISTING BUILDING CODE
2016 CALIFORNIA GREEN BUILDING STANDARDS CODE
2016 CALIFORNIA REFERENCE STANDARDS CODE
CITY OF SAN LUIS OBISPO MUNICIPAL CODE: TITLE 15 BUILDINGS AND CONSTRUCTION
CITY OF SAN LUIS OBISPO TITLE 17 ZONING REGULATIONS
ADJACENT ZONES:NORTH EAST SOUTH WEST
C-S-S C-S-S C-S-S C-S-S
SETBACKS
STREET:
SIDE:
REAR:
SETBACK BASED ON
ADJACENT ZONE:
DRAINAGE EASEMENT
STREET TREE, PUBLIC UTILITY
STREET TREE DEDICATION
LAND USE ANALYSIS
3680 BROAD STREET, SAN LUIS OBISPO, CA
053-231-047
C-S
SPECIAL CONSIDERATION ZONE
N/A
RESIDENTIAL, COMMERCIAL
70,450 SF (1.6 ACRES)
75% (52,837 SF)
28% (19,586 SF)
47% (33,252 SF)
1.5
1.6 ACRES x 24 UNITS = 38.4 DU
43 FEET - USE-0809-2015
BLDGS ≤ 20 feet high = 10 feet
BLDGS >20 feet high = 15 feet
N/A
N/A
0'
25'
50'
EASEMENT:
WETLAND PRESERVE AREA
RESIDENTIAL SETBACK FROM PUBLIC
RIGHT-OF-WAY PER SECTION 17.08.072(D)
10'
10'
20'
ADDRESS:
APN:
ZONING:
OVERLAY ZONES:
DESIGN AREA GUIDELINES:
FAR:
ALLOWABLE DENSITY PER ZONE:
(C-S - 24 DU / ACRE)
HEIGHT LIMIT:
ALLOWED USE (RELEVANT):
LOT SIZE:
MAX ALLOWABLE SITE COVERAGE:
EXISTING SITE COVERAGE:
REMAINING SITE COVERAGE:
PROJECT DESCRIPTION
THE IRON WORKS MIXED-USE PROJECT PROPOSES A NEW 8,243 SQUARE FOOT, 2-STORY MIXED-USE BUILDING. THE FIRST
FLOOR COMPRISES 3,425 SQUARE FEET OF SHELL SPACE FOR FUTURE COMMERCIAL TENANTS, A ONE-BEDROOM APARTMENT,
AND TWO TENANT ENTRIES FOR THE SECOND FLOOR. THE SECOND FLOOR INCLUDES 8 ADDITIONAL APARTMENTS – 4 STUDIOS
AND 4 ONE-BEDROOM UNITS. ALL SITE IMPROVEMENTS, PARKING, AND TRASH ARE INCLUDED IN A SEPARATE, APPROVED
PERMIT (PLBLDG-3371-2016).
PROJECT INFO
PROJECT INFO
SITE PLAN
UTILITY PLAN
FIRST FLOOR PLAN
SECOND FLOOR PLAN
UNIT PLANS A2.2
ELEVATIONS
ELEVATIONS/MATERIALS
MODEL IMAGES
INDEX
T1.0
T1.1
A1.0
A4.0
A2.0
A2.1
A3.0
A3.1
A1.1
Packet Pg. 118
Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site T1.1
BUILDING ELEMENT RATING
ALL 0
USE SYSTEM
B & R-2 NFPA 13
USE LOAD FACTOR
BUSINESS 100 GROSS
RESIDENTIAL 200 GROSS
USE DISTANCE
BUSINESS 100'
RESIDENTIAL 125'
USE / USE
B / R-2
B / B
R-2 / R-2
USE
MULTI-FAMILY
DWELLINGS
GENERAL RETAIL
RESTAURANT
MEDICAL SERVICE -
CLINIC, LABORATORY,
URGENT CARE
TYPE VB
PER 17.90.040: 1 PER STUDIO APARTMENT OR ONE BEDRROM APARMTENT, 2 FOR 2- OR 3-
BEDROOM APARTMENTS. ALSO SEE PARKING REDUCTION PARAGRAPHS UNDER 17.16.060.
ONE SPACE PER 60 SQ. FT. CUSTOMER USE AREA, INCLUDING WAITING SEATING, COUNTER SERVICE
AREAS, AND DANCING AREAS, PLUS ONE SPACE PER 100 SQ. FT. FOOD PREPARATION, INCLUDING
COUNTER SPACE, PANTRY STORAGE, AND DISHWASHING AREAS. WALLS, HALLS, RESTROOMS, AND
DEAD STORAGE AREAS DO NOT COUNT AS EITHER CUSTOMER USE OR FOOD PREPARATION FLOOR
AREA
ONE PER 200 SQUARE FEET GROSS FLOOR AREA.
ONE SPACE PER 300 SQUARE FEET GROSS FLOOR AREA
PARKING FACTOR
HOUR SEPARATION REQ’D
1-HOUR: FIRE BARRIERS PER 707, HORIZONTAL ASSEMBLIES PER 711
420.2 & 420.3: FIRE PARTITIONS PER 708 (1/2-HOUR PER 708.3 EXCEPTION
2), HORIZONTAL 711 (1/22-HOUR PER 711.2.4.3 EXCEPTION)
FIRE SPRINKLER SYSTEMS:
FIRE RATING REQUIREMENTS (PER CBC TABLE 601):
B - 3, R-2 - 3
B - 60', R-2 - 60'
B- 27,000, R-2 - 21,000
CONSTRUCTION TYPE: (PER CBC CHAPTER 5)
ALLOWABLE STORIES:
ALLOWABLE HEIGHT:
ALLOWABLE AREA:
OCCUPANCY USE ANALYSIS
MIXED-USE: RESIDENTIAL (R-2) & BUSINESS (B)
YES - PLANNING COMMISSION APPROVAL REQUIRED
YES - USE-0809-2015
YES - ARCMI (PER DIRECTION FROM PLANNER)
PROPOSED USE:
ALLOWED USE IN ZONE:
USE PERMIT REQ’D:
ENTITLEMENTS REQ’D:
OCCUPANCY LOAD FACTORS: (PER CBC TABLE 1004.1.2)
LONGEST PATH OF TRAVEL BASED ON OCCUPANCY:
OCCUPANCY SEPARATION REQUIREMENTS:
PARKING REQUIREMENTS:
FUTURE TENANT IMPROVEMENT PERMIT WILL BE SUBJECT AVAILABLE PARKING
173.75'
UNIT TYPES # OF UNITS DENSITY UNITS (DU)
STUDIOS:
(.5 DU)
4 2
ONE BEDROOM UNITS:
(0.66 DU)
5 3.33
TOTAL:9 UNITS 5.33 DU
ROOM SF/PARKING FACTOR # STALLS
46 EXISTING
LOW-INCOME UNITS
1 / UNIT 46
9 PROPOSED
MARKET-RATE UNITS
1 / UNIT 9
COMMERCIAL
3,425 SF
1 / 300 SF 12
TOTAL REQUIRED:67
REQUIRED:3
PROVIDED:5
TOTAL PROVIDED:(INC. ADA PARKING)71
TYPE REQUIRED PROVIDED
LONG-TERM 49 50
SHORT-TERM 17 18
ADA REQUIREMENTS: (1 PER 25)
BICYCLE PARKING:
PARKING REQUIRED:
AFFORDABLE UNITS PROVIDED ON SITE:81% (46 EXISTING AFFORDABLE UNITS / (46+9 PROPOSED MARKET-RATE
UNITS)
AFFORDABLE INCENTIVES PURSUED:43% DENSITY BONUS
PROPOSED DENSITY BONUS:[49.42 (E) DU + 5.33 DU] / 38.4 DU = 43%
DENSITY CALCULATIONS:
ALLOWABLE DENSITY PER ZONE:
(C-S - 24 DU / ACRE)
1.6 ACRES x 24 UNITS = 38.4 DU
EXISTING DENSITY:
29% DENSITY BONUS (USE-0809-2015)
49.42 DU
PROPOSED DENSITY CALCULATIONS:
AVERAGE NATURAL GRADE ELEVATION:
AREA:8,243 SF
LOT COVERAGE (FOOTPRINT):4,312 SF
FAR:
PROJECT INFO
HEIGHT:36'-6"
STORIES:2
OCCUPANCY:B (RETAIL / OFFICE), R-2 (APARTMENTS)
CONSTRUCTION TYPE:VB
USE:SYSTEM:
SPRINKLERS:B, R-2 NFPA 13
BUILDING AREAS:
ROOM OR FLOOR USE AREA/ OCC LF OCCUPANCY #EXITS REQUIRED
FUTURE T.I.BUSINESS 3,425 SF / 200 GROSS 17.1 1
1-BEDROOM UNIT RESIDENTIAL 420 SF / 200 GROSS 2.1 1 PER UNIT
ROOM OR FLOOR USE AREA/ OCC LF OCCUPANCY #EXITS REQUIRED
STUDIO (QTY 2)RESIDENTIAL 410 2.05 PER UNIT 1 PER UNIT
STUDIO (QTY 2)RESIDENTIAL 422 2.11 PER UNIT 1 PER UNIT
1-BEDROOM UNIT
(QTY 4)
RESIDENTIAL 460 2.3 PER UNIT 1 PER UNIT
ROOM OR FLOOR AREA/ OCC LF OCCUPANCY #MALE FEMALE
FUTURE T.I.N/A (WC, LAV, UR.)(WC, LAV)
TOTAL BUILDING AREA:8,243 SF
TOTAL COVERED DECK/PATIO AREA:588 SF
TOTAL UNCOVERED DECK/PATIO AREA:0 SF
BUILDING INFO
FIRST FLOOR:
SECOND FLOOR:
PLUMBING FIXTURE COUNT: (PER CPC TABLE 422.1, AND TABLE A)
Packet Pg. 119
Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site NOPARKINGNOPARKINGNO PARKING2.5'
461.414
S66° 31'31.08"W
N23° 20' 55.00"W150.387N66° 39' 05.00"E
478.635L=150.372, R=8971.2241
-50'-0"187'-5"
15 15
(E) MULTI-FAMILY RESIDENCES
3680 BROAD STREET
APN: 053-231-047
NOPARKINGNOPARKING180
179178
178
176 178175
174
173 1771761751741731781771761751741737
(N) MIXED-USE BUILDING
3680 BROAD STREET
APN: 053-231-047
FFE: 178.5
4
5
5
9
6
TYP
TYP
8
32
10
TYP
1
8
TYP
25'-0"
WETLAND SETBACK
11
8'-1"
(E)
SIDEWALK
14'-912"19'-1112"11'-4"25'-1"
73'-634" TO NEAREST
ADJ. BLDG.
14
13
TYP
12
20'-0" DRAINAGE
EASEMENT
10'-0" STREET TREE
&
P
U
B
L
I
C
UTILITY EASEMENT
10'-0" STREET DEDIC
A
T
I
O
N
EASEMENT
10'-0" OFFER FOR PU
E
&
STREET TREE EASEM
E
N
T
50' HOUSING SETBAC
K
FROM RIGHT-OF-WAY
KEYNOTES
(N) STREET TREE (REFER TO PLBLDG-3371-2016)
(N) LONG-TERM BIKE LOCKERS (REFER TO PLBLDG-3371-2016)
(N) TRANSFORMER (REFER TO PLBLDG-3371-2016)
(N) TRASH ENCLOSURE (REFER TO PLBLDG-3371-2016)
(N) ACCESSIBLE PARKING STALLS AND ACCESS AISLE (REFER TO PLBLDG-3371-2016)
(N) BUILDING AWNING OVERHEAD, SHOWN DASHED
(N) PARKING STALL PER SLO CITY STANDARDS AND (REFER TO PLBLDG-3371-2016)
(N) BIKE RACKS (REFER TO PLBLDG-3371-2016)
(E) PROPERTY LINE
(N) CONCRETE STAIRS (REFER TO PLBLDG-3371-2016)
(N) AC PAVING (REFER TO PLBLDG-3371-2016)
(N) MULTI-FAMILY RESIDENTIAL BUILDING (REFER TO PLBLDG-3371-2016)
(E) EASEMENT(S)
(N) COVERED PARKING BUILDING (REFER TO PLBLDG-3371-2016)
(E) FIRE HYDRANTS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
A1.0
1- ENLARGED SITE PLAN
SCALE: 1” = 20’
N
SITE KEY PLAN
SCALE: 1” = 100’
N
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Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site
N.T.S.
A1.1
APPROVED UTILITY PLAN FROM PLBLDG-3371-2016
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Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site 36'-0"11'-0"120'-0"50' TO R.O.W.6"6"34'-4"84'-8"9'-0"1 BR
420 SF
FUTURE T.I. SPACE
COMMERCIAL
1565 SQ. FT.
FUTURE T.I. SPACE
COMMERCIAL
1035 SQ. FT.
FUTURE T.I. SPACE
COMMERCIAL
825 SQ. FT.
UP UP
MECH.
115 SF
43'-0"16'-6"29'-6"19'-1"11'-11"
6'-512"18'-3"9'-11"18'-3"9'-11"18'-3"9'-11"15'-11"3'-112"9'-0"
FIRE
RISER
A2.0
FIRST FLOOR PLAN
SCALE: 3/32” = 1’-0”
N
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Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site 36'-0"36'-0"120'-0"
1 BR
460 SF
1 BR
460 SF
STUDIO
410 SF
STUDIO
422 SF
STUDIO
422 SF
1 BR
460 SF
STUDIO
410 SF
1 BR
460 SF
DN DN
DECK 66 SF DECK 66 SF DECK 66 SF
DECK 66 SF DECK 66 SF DECK 66 SF DECK 60 SF6"6"DECK 66 SF
9'-312"19'-6"1'-1"19'-6"2'-0"19'-6"8'-112"17'-6"11'-11"3'-9"3'-9"2'-6"1'-6"
29'-1012"
5'-612"
29'-712"29'-712"30'-1012"
4'-7"1'-512"15'-412"4'-0"16'-712"16'-712"4'-0"15'-412"5'-10"19'-6"8'-8"19'-6"8'-8"19'-6"8'-6"17'-6"11'-4"
A2.1
SECOND FLOOR PLAN
SCALE: 3/32” = 1’-0”
N
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Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site
4'-1112"
29'-2"
10'-312"13'-11"29'-2"
12'-112"8'-212"10'-512"7'-312"11'-0"38'-1"
BEDROOM
120 SF
KITCHEN/DININGLIVING BATH
A2.2
ENLARGED FIRST FLOOR PLAN - one bdroom
SCALE: 3/16” = 1’-0”
ENLARGED SECOND FLOOR PLAN - ONE BEDROOM
SCALE: 3/16” = 1’-0”
ENLARGED SECOND FLOOR PLAN - STUDIO
SCALE: 3/16” = 1’-0”
4'-1112"5'-1"29'-2"
10'-312"15'-812"10'-712"13'-11"
BEDROOM
110 SF
BATH
LIVING/DINING
KITCHEN
12'-1112"2'-912"5'-112"8'-312"
29'-2"5'-4"9'-112"14'-512"29'-2"
STUDIO
420 SF
BATH
N
NN
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Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site A3.0
EAST ELEVATION
SCALE: 3/32” = 1’-0”
NORTH ELEVATION
SCALE: 3/32” = 1’-0”
SOUTH ELEVATION
SCALE: 3/32” = 1’-0”
EAST
SOUTH NORTH
WEST
EAST
SOUTH NORTH
WESTEAST36'-6"ABOVE A.N.G.AVERAGE
NATURAL GRADE
173.75'
FIRST
FINISH FLOOR 0'-0"
178.5'
SECOND
FINISH FLOOR 13'-6"
192.0'
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Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site
ELEVATION
SCALE: 1/16" = 1
EAST
SOUTH NORTH
WEST
32 5 5 4 1 5 4
A3.1
WEST/BROAD STREET ELEVATION
SCALE: 3/32” = 1’-0”
MATERIALS
1. ROOFING
STANDING SEAM METAL
ROOF
2. BODY 1
CORRUGATED METAL
SIDING:
KINGSPAN 900 HIGH RIB
(WALL)
OR SIMILAR
3. DOORS
SHERWIN WILLIAMS
BRANDYWINE SW 7710
OR SIMILAR
LIGHT FIXTURES
HI-LITE H-18112 IN
BKO1
BLACK
OR SIMILAR DARK SKY
COMPLIANT FIXTURE
5. ACCENT 2
FIBER CEMENT PANELS,
TRIM, COLUMNS
SHERWIN WILLIAMS
BROWSE BROWN SW 6012
OR SIMILAR
4. ACCENT 1
METAL AWNINGS, METAL
PANEL, RAILING FRAMES
SHERWIN WILIAMS
BLACK FOX SW 7020
OR SIMILAR
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Item 9
IRON WORKS MIXED USE
3680 BROAD STREET, SAN LUIS OBISPO, CA
DATE: 08/02/2018
805.541.1010
539 Marsh StreetSan Luis Obispo, CAinfo@tenoverstudio.com
tenoverstudio.com
SET NOT FOR CONSTRUCTION
All dimensions to be verified on site A4.0
MODEL IMAGES
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Meeting Date: 11/13/2018
Water Treatment Plant, Ozone Pilot Project
September 2018
FROM: Carrie Mattingly, Utilities Director
PREPARED BY: Aaron Floyd, Deputy Director – Water
Jennifer Metz, Utilities Projects Manager
SUBJECT: WATER ENERGY EFFICIENCY PROJECT – FUNDING
RESOLUTION
RECOMMENDATIONS
1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, Authorizing Reimbursement to the California Energy Commission for
Financing the Water Energy Efficiency Project;” and
2. Authorize the Director of Utilities to execute the financial assistance application for the
Water Energy Efficiency Project.
DISCUSSION
In April 2018, the City Council adopted Resolution
10878 (Attachment A) enabling the City to
participate in Pacific Gas and Electric Company’s
(PG&E) Sustainable Solutions Turnkey (SST)
Program for the Water Energy Efficiency Project
(Project). As part of the program, an Investment
Grade Audit (IGA) is being prepared to analyze
several energy saving projects within the City’s
Water Treatment Plant (WTP).
Project components vary from replacement of the
primary water disinfection system (ozone
generation) at the WTP, installation of electricity
hydro-generation on the Nacimiento Reservoir water supply line, and the installation of
photovoltaic equipment. Many of the upgrades being considered were previously identified and
budgeted for as Capital Improvement Projects as part of the 2017-19 Financial Plan. The final
list of upgrades will provide the greatest efficiencies, address failing infrastructure issues critical
to supplying drinking water to the community, and are within a cost range that can be supported
by the Water Fund.
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Item 10
Project Financing
In August of 2018, the City Council approved Resolution 10931 (Attachment B) authorizing
application to the Cal OES Hazard Mitigation Grant Program to potentially fund one component
of the Project - a permanent standby generator. The City has an opportunity to finance another
Project component, the hydrogeneration facility, through low interest financing from the
California Energy Commission (CEC) Energy Conservation Assistance Act. The CEC program
offers financing for energy efficiency and renewable energy generation projects at a fixed
interest rate of one percent (1%) for the term of the loan (20 years), with a maximum loan
amount of $3 million. PG&E has advised the City that CEC funding is still available in 2018,
expediting the City Council’s consideration of the resolution (Attachment C). The adoption of
the resolution would enable the City to complete the financing application to the CEC.
Submission of the financing applications does not obligate the City to accept the loan.
Staff is exploring other financing options if the Project does not receive the Cal OES grant or
financing from the CEC, such as financing from the California Infrastructure and Economic
Development Bank (I-Bank), the State Revolving Fund (SRF), or other sources, as shown in
Table 1. The maximum funding amount would be $14.3 million. The final Project cost is
expected to be less. Further analysis and discussion of Project costs will be provided at the April
16, 2019, City Council meeting for the review of the Project’s Investment Grade Audit.
Table 1: Water Energy Efficiency Project - Potential Funding Sources
City Cal OES
Grant
CEC
Financing
SRF, I-Bank,
or Other
Financing
Total
Investment Grade
Audit (IGA) $860,000 n/a n/a n/a $860,000
Construction $765,500 $3,000,000 Up to
$14,300,000
Up to
$14,300,000
Cal OES Grant Match $255,000 n/a n/a n/a $255,000
NOTE: The California Office of Emergency Services (CalOES) Hazard Mitigation Grant Program requires a local
funding match of 25 percent of the total project cost.
CONCURRENCES
The Finance Department concurs with the recommendations in this report.
ENVIRONMENTAL REVIEW
The City has determined the Project is categorically exempt from the California Environmental
Quality Act pursuant to CEQA Guidelines section 15301, Class 1 – Existing Facilities and
15328, Class 28 - Small Hydroelectric Projects at Existing Facilities (Attachment D).
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Item 10
FISCAL IMPACT
There is no fiscal impact associated with the recommended action. Submission of the financial
assistance application does not obligate or commit the City to accept the loan from the CEC but
allows this phase of the financing process to begin. Loan repayment would be from the City’s
Water Fund.
ALTERNATIVE
Do Not Adopt the Resolution. The Resolution is required to submit the financing application to
the CEC. Should Council choose to not adopt the Resolution the City would not be able to apply
for this loan program. Alternative funding will be on less favorable terms than the CEC program.
Attachments:
a - Resolution 10878-PG&E SST Program
b - Resolution 10931-CalOES Hazard Mitigation Grant Program
c - CA Energy Commission Resolution
d - Water Energy Efficiency NOE
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Item 10
RESOLUTION NO. 10878 (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING A SERVICES AGREEMENT
WITH PACIFIC GAS AND ELECTRIC COMPANY PURSUANT TO
CALIFORNIA GOVERNMENT CODE 4217.10 ET SEQ., FOR THE CITY'S
WATER ENERGY EFFICIENCY PROJECT
WHEREAS, the City of San Luis Obispo desires to install certain energy efficiency
upgrades; and
WHEREAS, Section 907 of the City Charter exempts energy projects from the
requirements of Article IX of the City Charter; and
WHEREAS, the State of California Government Code 4217.12 authorizes local
municipalities to enter into energy services and financing agreements, outside of the adopted
procurement process, that the governing body finds best serves the public agency; and
WHEREAS, the City Council desires to use the California Government Code 4217.10 as
a basis to negotiate contracts and possible financing for certain energy efficiency upgrades and
to utilize programs offered by its energy provider Pacific Gas & Electric Company ("PG& E");
and
WHEREAS, the City Council considered the aforementioned contracts with PG&E at a
public hearing during a regularly scheduled meeting on April 3, 2018, public notice of which was
given at least two weeks in advance.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings: Based upon the City's Council Agenda Report, which included
projections for electrical energy rates from PG&E which provides electricity to the City of San
Luis Obispo, and other evidence presented at the public hearing, the Council hereby finds:
a) The Water Energy Efficiency Project is subject to Government Code
section 4217.10 et seq. and Article IX Section 907 of the City Charter
and provides unique and provide benefits to the public;
b) The anticipated cost to the City under the contract with PG& E will be less
than the anticipated marginal cost to the City for the electrical energy that
would have been consumed by the City in the absence of those purchases;
c) The project is exempt from Article IX Section 901 of the City Charter and is
allowed by Government Code section 4217.10 as an energy efficiency project.
1. .
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Item 10
Resolution No. 10878 (2018 Series) Page 2
SECTION 2. Environmental Determination. The City Council hereby determines that the
Investment Grade Audit of the Water Energy Efficiency Project's is statutorily exempt from the
California Environmental Quality Act (CEQA) consistent with Section 15262, Feasibility and
Planning Studies. Once individual projects come forward, further environmental assessment will
be performed.
SECTION 3. The City approves the agreement substantially in the form attached as
Exhibit A.
SECTION 4. The City Council authorizes the City Manager to execute the Service
Agreement and the Work Order with PG&E for the Investment Grade Audit of the Water
Energy Efficiency Project, subject to the City Attorney's approval as to the form of the
agreements.
Upon motion of Vice Mayor Christianson, seconded by Council Member Pease, and on the
following roll call vote:
AYES: Council Members Gomez, Rivoire and Pease,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 3`d day of April 2018.
ATTEST:
I -
Teresa Purrington
Acting City Clerk
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Item 10
Resolution No. 10878 (2018 Series)
APPROVED AS TO FORM:
Page 3
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this l 0' day of k1lic,1 g
Teresa Purrington
Acting City Clerk
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Item 10
Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 4
Pacific Gas and Agreement No: SST-XXXXX
S Electric Company (Customer name)
SERVICES AGREEMENT
This Services Agreement is made and entered into as of _ ("Effective
Date") by and between , a with offices at
Customer") and Pacific Gas and Electric Company, a California corporation, with
offices at 77 Beale Street, San Francisco, California 94105 ("PG&E"). Customer and PG&E shall each
individually be referred to as a "Party" and together constitute the "Parties."
RECITALS
WHEREAS, Customer desires assistance in implementing energy conservation and management
services and other energy-related projects and services at one or more of its facilities located in PG&E's
service territory;
WHEREAS, PG&E desires to assist Customer implement the energy conservation measures as
more fully set forth herein; and
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
set out in this Agreement, Customer and PG&E agree as follows:
1. DEFINITIONS. In addition to those definitions set forth elsewhere in this Agreement, the following
capitalized terms shall have the meanings set forth below:
1. 1 "Agreement" shall mean this Agreement, and all such Agreement's Exhibits, Work Orders and
Change Orders, all of which are incorporated herein; as such Agreement, Exhibits, Work Orders or
Change Orders may be amended, changed or modified from time to time.
1.2 "Change" shall mean: (a) any material addition to, deletion from, suspension of or other
modification that materially affects the design, configuration, quality, or function of the Project or the
Services; (b) a change or modification to or repeal of an applicable law after the Effective Date, (c) delay
or other demonstrable material adverse impact to the Work Order resulting from a Force Majeure Event,
or (d) any applicable performance or compliance requirement which Customer may newly articulate or
revise during the Term.
1.3 "Change Order" shall mean a written document signed by the Parties that describes a Change to
the Scope of Work or Work Order, and authorizes and directs PG&E to perform such Change. The
Change Order may also authorize the additional compensation, if any, to be paid PG&E to perform such
Change.
1.4 "Energy Conservation Measures" or "ECM" means an energy conservation measure which may
include a feasibility study, engineering and design (e.g., IGA), operation and maintenance.
1.5 "Investment Grade Audit" or "IGA" shall mean the detailed analysis of all or a portion of a
Facility to determine the technical and financial feasibility of implementing, operating and maintaining
one or more ECMs at such Facility.
1.6 "Equipment" shall mean all of the equipment, machinery, technology and other items described
in the applicable Work Order.
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Item 10
Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 5
FSPacific Gas and
Agreement No: SST-XXXXX
Electric Company Customer name)
1.7 "Facility(ies)" shall mean the above -ground buildings and related premises owned or leased by
Customer as set forth in the applicable Work Order.
1.8 "Force Majeure Event" shall mean any cause, act, event, condition or other occurrence materially
impacting the Services or the Project Schedule not caused by the Party asserting the Force Majeure Event
and that is beyond the control of such Party to avoid, overcome or remedy through the exercise of due
diligence and reasonable efforts. Without limiting the foregoing, the following are examples of Force
Majeure Events: acts of God and the public enemy; the relocation, repair, shut down, or construction of
PG&E transmission or distribution facilities; flood, earthquake, tornado, storm, fire, power failures,
epidemics, civil disobedience, labor disputes, shortage of components and supplies.
1.9 "Hazardous Materials." Any hazardous, toxic or dangerous wastes, substances, chemicals,
constituents, contaminants, pollutants, and materials, including without limitation, asbestos -containing
equipment or materials, lead-based paint, ozone depleting refrigerants, fluorescent tubes, fluorescent
magnetic core and coil ballasts, carcinogenic, corrosive, ignitable, radioactive, and reactive or otherwise
hazardous substances or mixtures (whether solids, liquids, or gases) now or at any time subject to
regulation, control, removal, remediation or otherwise addressed under applicable law or under PG& E's
CPUC -approved rules.
1.10 "Material Changed Condition" shall mean the unforeseeable or unanticipated discovery of the
presence of Hazardous Materials or other unanticipated or unforeseeable condition or circumstance, at or
near a Facility or Project site that has occurred or has been discovered after the Services has commenced
that materially impacts the Schedule, the Services or PG&E's costs to perform the Services, was not
caused by PG&E and that PG&E could not have discovered through the exercise of reasonable due
diligence. Only by way of example, a Material Changed Condition includes but is not limited to (i)
Hazardous Materials or other differing and unexpected site conditions, surface or subsurface conditions,
ii) adverse weather conditions unusual to the area where the Services is to be performed and that could
not have been anticipated and that materially impacts the Services or Project Schedule; or (iii)
unforeseeable material delays in Equipment, material deliveries or the availability of labor that materially
impacts the Services or Project Schedule.
1.11 "Project" shall mean energy efficiency, energy conservation, energy management, energy
production or other energy-related measures or projects; or any other energy-related matter, measure or
project that is, or will become, the subject of a Work Order.
1.12 "Project Schedule" shall mean the estimated commencement date, sequence, duration, and, if
appropriate, milestones, for Substantial Completion of the Project as set forth in the Work Order.
1.13 "Services" mean, collectively all activities to be performed by PG&E pursuant to this Agreement
to complete a Project, including, without limitation, preliminary and/or IGA, design, Equipment or
materials procurement, construction, installation, testing, completion, maintenance and operation of a
Project. Services shall also include all labor, work, Equipment fabrication, assembly, modification, repair
and replacement, and other activities as the Parties may agree upon and are set forth in a Work Order.
1.14 "Scope of Work" shall mean all of the Services to be performed by PG&E and/or its
Subcontractors pursuant to the terms and conditions of a Work Order, and any Change Orders to a Work
Order, as well as all other efforts of PG&E and other entities with respect to such Work Order, for the
implementation of an ECM alone or as part of a Project pursuant to the terms and conditions of this
Agreement and as specifically described in each Work Order and applicable Change Orders.
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Item 10
Pacific Gas and
Electric Company
Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 6
Agreement No: SST-XXXXX
Customer name)
1.15 "Subcontractor" shall mean any corporation, limited liability company, partnership, association,
or individual hired by PG&E to perform Services.
1.16 "Substantial Completion" shall mean the Project is generally capable of being used for or of
achieving the purpose intended by the Work Order.
1.17 "Work Order" means the document executed by both Parties to complete the Services identified
in such Work Order. Each Work Order shall be subject to the terms and conditions of this Agreement and
the terms and conditions set forth in such Work Order. If there is a conflict between the Work Order or
Change Orders and the terms and conditions of this Agreement, such Work Order/Change Order shall
take precedence and shall establish the Scope of Work of each Project.
2. SCOPE. This Agreement sets forth the terms and conditions under which PG&E may assist
Customer implement ECMs at one or more of Customer's Facilities through Work Orders. This
Agreement sets forth the terms and conditions under which Work Orders may be entered into by the
Parties. All Work Orders shall be subject to and governed by this Agreement.
3. RELATIONSHIP OF THE PARTIES.
3.1 Independent Contractors. The Parties are independent contractors. Nothing herein shall
be construed as creating any agency, partnership, or other form of joint enterprise between the Parties and
neither Party may create any obligations or responsibilities on behalf of the other Party.
3.2 Subcontractors. PG&E may subcontract its obligations hereunder to other persons or
entities in order to perform the Services hereunder. PG&E agrees to impose on its Subcontractors
obligations consistent with those set forth in this Agreement with respect to safety, security,
confidentiality, insurance and indemnification. The fees and costs billed to Customer shall be inclusive of
any and all fees and compensation due to any Subcontractors.
3.2.1 Subcontractor Selection. PG& E may perform some or all of the Services under a
Work Order itself or through Subcontractors. Subcontractor selection shall be based on cost, experience,
past performance, reliability and such other factors as practicably related to the Customer's needs.
3.3 Project Management.
3.3.1 Authorized Persons. Customer and PG&E will each designate an employee who
is sufficiently experienced to provide the information and support necessary to the other party for the
performance of this Agreement (the "Authorized Person"). The Authorized Person for each party shall be
the primary point of contact for inquiries and requests. Each such Authorized Person shall provide the
other with such information and assistance as may be reasonably requested by the other from time to time
for the purpose of the performance of this Agreement.
3. 3.2 Approvals. The Authorized Person for each party will have the authority to
issue, execute, receive, grant and provide any and all approvals, requests, notices and other
communications permitted, required or requested by the other party; provided, however, that neither
Customer nor PG&E shall rely for any purpose on any oral communication not confirmed in writing by
an Authorized Person within twenty-four (24) hours, and provided however, that neither Customer nor
PG&E shall rely for any purpose on any oral communication which would have the effect of amending
this Agreement.
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Item 10
Pacific Gas and
Electric Company
4. SERVICES.
Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 7
Agreement No: SST-XXXXX
Customer name)
4.1 General. Customer may request that PG&E assist Customer in the implementation of one
or more of the ECMs at set forth in Exhibit A, which is attached hereto and incorporated by reference
herein.
4.1.1 Prelimina Audit. At Customer's written request, PG& E or its Subcontractor
will conduct, at no cost to Customer, a preliminary audit consisting of an on-site building investigation and
evaluation for a mutually agreeable Facility to determine if any significant energy conservation
opportunities exist and whether a further IGA is needed.
4.1.2 Investment Grade Audit. After reviewing the Preliminary Audit, the Parties may
enter into a Work Order setting forth a Scope of Work for an "IGA to determine whether the ECMs
proposed in the Preliminary Audit are feasible. The Work Order for the IGA shall specify the terms for
completing the IGA and establish a price for the IGA. Customer shall pay for the IGA in accordance with
the payment terms of this Agreement and the applicable Work Order. Unless otherwise agreed upon in the
Work Order for the IGA, Customer shall provide PG&E, at Customer's sole cost and expense, legible and
complete copies of all floor plans, drawings and any other documents deemed necessary by PG&E in order
to provide the IGA.
4.1.3 Designand Implementation Phase. Upon completion of the IGA, PG&E will
provide an ECM implementation proposal, which would include additional design, engineering and
construction services (the "Proposal"). Customer shall evaluate the Proposal for technical and price
reasonableness. If Customer elects to proceed with the ECM, the Parties will agree upon a Scope of Work
with specifications, time of performance, ECM cost, source and cost of capital or financing, payment
terms, amortization schedule and termination schedule which shall be set forth in a Work Order. If
required, PG&E will provide acceptable payment and performance bonds.
4.1.4 Assumptions. Customer understands that performance of the Services is
dependent upon Customer's cooperation. Therefore, Customer agrees to use its best efforts to cooperate
with PG&E in the performance of the Services and shall provide PG&E with timely access to, during
normal business hours, and use of Customer's personnel, facilities, data, Equipment, materials and
information to the extent necessary for PG&E to perform the Services. Customer acknowledges and
agrees that Work Orders may set forth additional details regarding PG&E's access to and use of the
foregoing as well as Customer's computer systems and networks.
4.2 Changes and Change Orders. If a Change has occurred the Parties shall, if reasonably
possible, agree on a Change Order. If the Parties are unable to agree on a Change Order, PG&E shall
suspend its performance of the Services including the Change, until such time as the Parties'
disagreement has been resolved pursuant to Section 11 (Dispute Resolution).
4.2.1 Material Chanted Condition. PG&E will give written notice to Customer of the
discovery of Hazardous Materials on or near a Facility, or other condition or circumstance PG&E or its
Subcontractor believes to be a Material Changed Condition. Neither PG&E nor its Subcontractor will
remove, remediate, repair or otherwise disturb any site, soil, subsurface conditions, Hazardous Materials
or other adverse impacts on the Services or the Facility until Customer has had a reasonable opportunity
to investigate to determine whether a Material Changed Condition has occurred. If Customer reasonably
determines a Material Changed Condition has occurred, the Parties will, if reasonably possible, agree on a
Change Order with respect to such Material Changed Condition. If the Parties fail to agree on a Change
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Order relating to a Material Changed Condition, PG&E shall suspend Services until such time as the
Parties have resolved the disagreement pursuant to Section 11 (Dispute Resolution).
a) Handling and Disposal of Hazardous Materials. Customer acknowledges and
agrees that PG&E has no obligation to investigate or inspect the Facility for the presence of Hazardous
Materials, or to identify, remove, dispose of, abate, or remediate Hazardous Materials. Customer shall
have sole responsibility for the identification, removal, disposal, abatement or remediation of Hazardous
Materials, and for the clean-up, transport and disposal of any fixtures, materials, Equipment, or
substances containing, exposed to or contaminated by Hazardous Materials, all in accordance with
applicable laws.
4.2.2 Unanticipated Conditions. If any unusual or unanticipated conditions exist or
arise at the Site (such as Hazardous Materials, environmental conditions or pollution), which conditions
would involve the incurrence by PG&E of any expenses to correct such conditions, PG&E shall submit a
written request to Customer for Customer's prior written approval of the corrective work and payment of
the related expenses. The additional Services resulting therefrom will be set forth in a Change Order
signed by both Parties.
4.2.3 Safety Waiver and Repair Services. If in the process of performing the Services,
a condition is discovered at the Facility that, in the sole judgment of PG&E, (a) represents an extreme
safety hazard to its worker's safety or other personnel, (b) may cause operational failure of the Equipment
comprising the Facility, or (c) may cause damage to other Equipment being served by the Facility, PG&E
will immediately notify Customer in writing of such condition and the Services necessary to remedy the
condition. Customer will be asked to sign this written notification in the form of Exhibit B (Safety
Waiver). Failure or refusal to sign the Safety Waiver will relieve PG&E and its Subcontractors of any
responsibility to perform the Services.
4.2.4 Customer Delay. If the performance of particular Services by PG&E depends
upon approvals or other decisions by Customer, or Customer furnishing particular data, drawings,
documents or other information, and Customer does not timely perform or provide the same, the
minimum time estimate for PG&E's completion of the particular Services which are dependent thereon
shall be extended by the period of Customer's delay with respect thereto.
4.2.5 Change Costs. Customer shall reimburse PG&E for those reasonable costs
incurred by PG&E or its Subcontractor(s) to implement a Change in accordance with the Change Order.
These costs include, but are not necessarily limited to, increased costs for design and other professional
services, expenses and taxes, if any.
4.2.6 With respect to any Change Order made in accordance with this Section 4,
Customer acknowledges that PG&E and its Subcontractors shall not be obligated to commence and/or
perform any Services pursuant to a Change Order unless and until PG&E has received the signed Change
Order and Customer has issued PG&E a Work Order for such Change Order.
4.3 PG& E's Utility Obligations. Customer acknowledges that PG& E has an obligation to
maintain, repair and service its own facilities, including those under the operation and control of the
California Independent System Operator, in order to perform its duties as a public utility, which
obligation takes precedence over any obligations undertaken in this Agreement. Accordingly, if PG&E
determines at any time, in its sole discretion, that it requires any personnel or resources previously
committed to the performance of Services under a Work Order in order to maintain adequate service to
PG&E's other customers or to fulfill its duties as a public utility, then PG& E shall have the right to divert
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the use of such personnel or resources to satisfy such requirements. If as a result of such action, PG&E is
unable to perform its obligations under this Agreement and is unable to procure a third party to perform
the Services (or a portion thereof), then PG&E shall be excused from the performance of the Services
affected by such action to the extent so affected. In that event, PG&E shall have no liability to Customer,
and shall not be considered in default under this Agreement, for such failure to perform.
5. FACILITY SAFETY AND HAZARDOUS MATERIALS
5.1 Facility Safety. Customer shall be responsible for ensuring that the Facilities are safe for
PG&E personnel and Subcontractors performing Services at Customer's facilities. Customer shall also
cooperate with PG&E personnel working on-site and shall promptly take such actions that may be
requested by PG& E personnel to help ensure a safe working environment.
5.2 Hazardous Materials. Prior to performing any Services at a Facility, Customer will
inform PG&E and Subcontractors of the presence of any Hazardous Materials of which Customer is
aware exist inside the Facility (e.g., asbestos). If PG&E or its Subcontractor discovers any Hazardous
Materials at or around the Facility after commencement of the Services, the procedures specified below in
Section 5.3 shall apply. Neither PG&E nor its Subcontractors shall handle, remove, dispose of or
remediate any Hazardous Materials absent Customer's prior written instructions and the execution of a
Change Order.
5. 3 If, during performance of the Services, PG&E or a Subcontractor reasonably believes
that it has encountered or detected the presence of Hazardous Materials, PG&E will promptly stop
performing the Services and notify Customer of such Hazardous Materials or conditions. Customer will
promptly investigate for the presence of Hazardous Materials and inform PG&E of the results of this
evaluation. PG&E will not resume the performance of the Services until the Hazardous Materials have
been removed, disposed of, abated or remediated to PG&E's reasonable satisfaction. Any delay or
increase in the Services or costs as a result of the testing, presence, removal, disposal, abatement or
remediation of Hazardous Materials shall be grounds for a Change Order.
6. COMPENSATION.
6.1 Payment Terms. Customer shall pay PG& E for the Services performed in accordance
with payment terms set forth in the applicable Work Order. Unless otherwise set forth in the Work Order,
each payment made by Customer must reference this Agreement, the Work Order and invoice number
and be mailed to PG&E to the attention of Accounts Payable.
6.2 Late I'ayments. All late payments shall be subject to an interest charge, which is the
greater of. (i) one and one half percent (1.5%) per month, or (ii) the maximum legal rate. In the event that
any unpaid amounts are referred to collection, including but not limited to any applicable late fees,
Customer shall reimburse PG&E for all costs and expenses of collection, including all reasonable
attorneys' fees and costs related thereto.
6.3 Expenses. Customer agrees to reimburse PG&E for all expenses incurred in connection
with PG&E's performance of the Services, including but not limited to all travel and lodging expenses.
Expenses shall be invoiced at their actual cost and will be reflected on PG&E's invoices and shall be paid
in accordance with the payment terms set forth in the applicable Work Order.
6.4 Taxes. Customer shall be solely responsible for the payment of any and all sales, use,
transfer, and other taxes and duties, whether state, federal, national or international, however designated,
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which are levied or imposed on PG&E because of the Services performed under this Agreement (other
than taxes based on PG&E's net income) ("Taxes"). If PG&E has the legal obligation to pay or collect
Taxes for which Customer is responsible under this Section 6.4, the appropriate amount shall be invoiced
to and paid by Customer unless Customer provides PG&E with a valid tax exemption certificate
authorized by the appropriate taxing authority verifying that Customer is not required to pay those Taxes
and is legally exempt.
7. WARRANTIES AND WARRANTY DISCLAIMERS
7.1 Customer Warranties. Customer represents and warrants to PG&E that: (a) it has the full
corporate right, power, and authority to enter into the Agreement and to perform its obligations
hereunder; (b) the terms of the Agreement and the performance by such Party of its duties and
obligations hereunder, do not violate and will not cause a breach of the terms of any other agreement or
any applicable law to which such Party is a party or by which it is subject or bound; (c) when executed
and delivered by such Party, the Agreement will constitute the legal, valid and binding obligation of such
Party, enforceable against such Party in accordance with its terms; and (d) it is either the owner or lessee
of the Facility and has all necessary rights to allow PG& E and Subcontractors access to such Facility so
that they may perform the Services.
7.2 PG&E Limited Warranties.
7.2.1 PG&E warrants that the Services will be performed in a commercially reasonable manner
consistent with the level of care and skill exercised by others when performing Services of a similar
nature under similar circumstances. Unless otherwise agreed to by PG&E in writing, the warranty period
for Services furnished hereunder shall be for a period of twelve (12) months from the date of Substantial
Completion ("Service Warranty Period").
7. 2.2 Remedies. Customer must notify PG& E of any non -conformity or defect in the Services
within the Service Warranty Period. If Customer notifies PG&E within the Services Warranty Period,
and PG&E confirms the Services were not performed in accordance with Section 7.2.1, then PG&E, in its
sole discretion, will either re -perform the non -conforming Services within a commercially reasonable
period of time at PG&E's cost and expense or (b) refund the applicable fees paid to PG&E by Customer
for the non -conforming Services. THIS SECTION 7.2.2 STATES CUSTOMER'S SOLE AND
EXCLUSIVE REMEDY AND PG&E'S SOLE LIABILITY FOR A BREACH OF THE SERVICE
WARRANTIES SET FORTH ABOVE IN SECTION 7.2.1. THE SERVICE WARRANTIES EXTEND
TO CUSTOMER ONLY AND CANNOT BE ASSIGNED BY CUSTOMER.
7.3 Third Party Warranties. PG&E shall use commercially reasonable efforts to obtain from all
manufacturers, Customers and distributors standard guarantees and warranties ("Third Party Warranties")
on the Equipment used in the Services or in an ECM, and any warranty for the Equipment shall be limited
to the Third Party Warranties provided by manufacturers, Customers, and distributors. All such Third
Party Warranties, including without limitation those for defects, whether latent or patent, in Equipment
shall terminate upon the conclusion of each such applicable Third Party Warranty period. Neither PG&E
nor its Subcontractors shall have any liability for breach of a Third Party Warranty, whether express or
implied, or for any latent or patent defect of any kind. PG&E shall assign all Third Party Warranties
directly to Customer.
7.3.1 The Third Party Warranty expressly excludes any remedy or liability for damage or
defect caused by the improper use, or improper or inadequate operations or maintenance of Equipment or
for the Services by users other than the Customer; corrosion, erosion, deterioration, abuse, modifications
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or repairs not performed by an authorized subcontractor; or for wear and tear under normal usage. At
Customer's option, Customer may contact the Equipment manufacturer, Customer or distributor directly
to resolve any Third Party Warranty issues and Customer acknowledges that Customer and Equipment
manufacturer, Customer or distributor shall have sole responsibility for such issues.
7.4 No Guarantee of Energy Savings. PG&E DOES NOT WARRANT OR GUARANTEE ANY
LEVEL OF ENERGY, WATER SAVINGS, COST REDUCTIONS OR EQUIPMENT OR ECM
PERFORMANCE.
7.5 Disclaimer. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 8, CUSTOMER
EXPRESSLY AGREES THAT PG&E MAKES NO OTHER WARRANTIES AND ASSUMES NO
OTHER LIABILITIES, WHETHER IN CONTRACT OR IN TORT, IN CONNECTION WITH THE
AUDIT, DESIGN, ENGINEERING, EQUIPMENT PROCUREMENT, CONSTRUCTION,
IMPLEMENTATION, OPERATIONS, MAINTENANCE, SERVICES, EQUIPMENT OR ECMS
HEREUNDER WHETHER EXPRESS OR IMPLIED, IN LAW, IN EQUITY OR IN
COMMUNICATIONS BETWEEN PG&E AND CUSTOMER. PG&E SPECIFICALLY DISCLAIMS
ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. CUSTOMER SHALL HAVE NO REMEDIES AGAINST PG&E FOR ANY DEFECTIVE
SERVICES, INSTALLED EQUIPMENT, OR OPERATION OF AN ECM EXCEPT IN
ACCORDANCE WITH THE WARRANTY SET FORTH IN THIS SECTION 7 OR AS THE PARTIES
MAY EXPRESSLY AGREE IN ANY WORK ORDER OR AMENDMENT TO THIS AGREEMENT.
8. LIMITATION OF LIABILITY
8.1 IF PG&E IS HELD TO BE LIABLE TO CUSTOMER OR TO ANY PARTY
CLAIMING BY OR THROUGH CUSTOMER BY REASON OF PG&E'S PERFORMANCE OF
SERVICES UNDER THIS AGREEMENT, PG&E'S TOTAL AGGREGATE LIABILITY WITH
RESPECT TO DAMAGES AND LOSSES RELATING TO THIS AGREEMENT SHALL BE LIMITED
TO THE LESSER OF: (A) THE PRICE FOR THE SERVICES UNDER THE WORK ORDER GIVING
RISE TO THE CLAIM; OR (B) THE TOTAL AMOUNT PAID BY CUSTOMER TO PG&E FOR THE
SERVICES UNDER THE WORK ORDER GIVING RISE TO THE CLAIM.
8.2 IN NO EVENT SHALL PG&E BE LIABLE TO CUSTOMER OR ANY THIRD
PARTY FOR INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES
INCLUDING, BUT NOT LIMITED TO, LOSS OF USE, COST OF DELAYS, REPLACEMENT OF
POWER, OR LOSS OF PROFITS, EVEN IF PG&E IS ADVISED BY CUSTOMER OF THE
POSSIBILITY OF SUCH DAMAGES.
8. 3 THE ABOVE LIMITS OF LIABILITY ARE EXCLUSIVE AS TO ALL REMEDIES
AND THE LIABILITY CAP SHALL NOT BE COMBINED WITH ANY OTHER LIMITS OF
LIABILITY SO AS TO INCREASE THE CAP VALUE IN ANY PARTICULAR INSTANCE OR
SERIES OF INSTANCES. THE PARTIES AGREE THE ABOVE SECTIONS 7 - 9 REPRESENT THE
BASIS OF THE BARGAIN AND A FAIR ALLOCATION OF RISK BETWEEN THE PARTIES.
8.4 Basis of the Bargain. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE
FOREGOING SECTIONS ON WARRANTIES, WARRANTY DISCLAIMER AND LIMITATION OF
LIABILITY IN THE AGREEMENT FAIRLY ALLOCATE THE RISKS BETWEEN THE PARTIES
AND ARE ESSENTIAL ELEMENTS OF THE BASIS OF THE BARGAIN BETWEEN THE PARTIES
SUCH THAT THE PARTIES WOULD NOT HAVE ENTERED INTO THIS AGREEMENT
WITHOUT SUCH SECTIONS.
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9. INDEMNIFICATION. Customer covenants and agrees that Customer will indemnify, defend and hold
harmless PG&E, its affiliates, and PG&E's and its affiliates' respective directors, officers, employees,
agents, successors and assigns (collectively, the "PG&E Indemnitees") from and against any and all
claims, damages, costs, expenses, (including attorneys' fees and court costs) and liabilities (including
settlements) brought or asserted by any third party against the PG&E Indemnitees resulting from, arising
out of or related to any claim: (i) for personal injury, including death, or property damage, including theft,
caused to any of the PG&E Indemnitees, Subcontractors or a third party by Customer's action or inaction,
whether negligence or intentional misconduct; and (ii) resulting from Customer's breach of any
representations, warranties or covenants contained above in Sections 7.1 or 7.2; and (iii) any data,
Equipment, information, software or other property provided to PG&E hereunder or any elements
embodied therein, or that any of the PG&E Indemnitees' use of any of the foregoing infringe or
misappropriate the intellectual property rights of any third party (each of the foregoing (i) through (iii) are
referred to as a "Claim"). PG&E shall promptly notify Customer of any Claim and shall (at Customer's
sole expense) reasonably cooperate with Customer to facilitate the settlement or defense of such Claim.
Customer shall, at its own expense, indemnify, defend and hold harmless the PG& E Indemnitees from
and against all costs of defending the Claim, including attorneys' fees and court costs (including those
incurred by the PG&E Indemnitees in enforcing this provision). Customer shall keep PG&E Indemnitees
informed of, and consult with PG& E Indemnitees in connection with the selection of counsel to defend
the Claim and the progress of such litigation or settlement. Customer shall not have any right to settle
any such Claim without the specific prior written approval from a designated legal representative of the
PG&E Indemnitees.
10. TERM, SUSPENSION AND TERMINATION
10.1 Term. This Agreement shall commence on the Effective Date and shall terminate upon
later of. (a) three (3) years from the Effective Date, or (b) the Final Completion of all then -outstanding
Work Orders, unless otherwise terminated earlier pursuant to this Section 10 (the "Initial Term"). This
Agreement may be renewed, upon thirty (30) days prior written notice, for two (2) additional one (1) year
periods upon the mutual written agreement of the Parties (each a "Renewal Term"). The Initial Term and
all Renewal Terms shall be collectively referred to as the "Term'.
10.2 Termination for Cause. If either Party materially defaults in the performance of any of
its duties and obligation hereunder, or such material default is not cured within thirty (30) days after
written notice thereof, this Agreement may be terminated by the non -defaulting party for cause as of the
date specified in the notice. In addition, a Party may be entitled to terminate the Agreement immediately
if a Party files a petition in bankruptcy, makes an assignment for the benefit of its creditors, becomes
insolvent, fails to do business in the ordinary course, shall have or suffer the appointment of a receiver or
trustee for its business or property, or be adjudicated bankrupt or insolvent, or bankruptcy proceedings are
commenced by or against such Party.
10.3 PG&1;'s Additional Termination Rights.
10.3.1 Change in Law. In the event legislation or governmental regulations would
prohibit PG&E from providing the Services under this Agreement (in whole or in part), PG&E
may terminate the Agreement or any Work Order (without any liability or penalty) upon thirty
30) days' notice. Upon the effective date of PG&E's termination notice under this Section,
Customer will pay PG&E for all of the Services provided to Customer as of the effective date of
the termination notice.
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10.3.2 Program Change. PG&E may terminate this Agreement immediately and
without prior notice in the event the California Public Utilities Commission ("CPUC") issues a
ruling or order prohibiting or otherwise preventing PG&E from fulfilling, or substantially
interfering with PG&E's ability to fulfill, its obligations under this Agreement, or finding that this
Agreement is contrary to the policies of the CPUC. .
10.4 Suspension of Service. PG&E reserves the right (in addition to any and all other rights
and remedies PG&E may have) to suspend the performance of the Services, including those performed by
Subcontractors, without any penalty or liability to Customer, if any invoice remains unpaid (in whole or
in part) after the date payment is due until such invoice (including late penalties) is paid in full.
10.5 Effect of Termination. Upon any expiration or termination of this Agreement, PG&E's
obligations to Customer shall be to continue to perform the Services until the effective date of such
termination (except as otherwise instructed in writing by PG&E), to wind down and terminate the
Services in an efficient, workmanlike and cost-effective manner, and to cooperate with PG&E in the
transition to third parties or employees designated by PG& E.
10.5.1 Effect of Customer's Termination.
a) If Customer terminates a Work Order for cause pursuant to Section 10.2 and
prior to Substantial Completion, Customer may do so by giving written notice to PG&E at least
thirty (30) days prior to the effective date of such termination. In that event, Customer shall pay
PG&E the amount set forth in the termination schedule set forth in the applicable Work Order.
b) If Customer terminates a Work Order for cause pursuant to Section 10.2 and after
Substantial Completion, Customer may do so by giving written notice to PG&E at least thirty
30) days prior to the effective date of such termination. In that event, Customer shall pay PG&E
the amount set forth in the termination schedule set forth in the applicable Work Order.
10.6 Survival. The following Sections of this Agreement shall survive expiration, cancellation
or other termination of this Agreement: 1, 6, 7through 9, 10.5, 10.6 andl l through 13. Any other
provisions of this Agreement that would generally be construed as intended to survive the expiration,
cancellation or other termination of this Agreement shall also survive such expiration, cancellation or
other termination.
11. DISPUTE RESOLUTION. If any dispute, excluding payment defaults or delinquencies, arises under
the Agreement that is not settled promptly in the ordinary course of business, the Parties shall first seek to
resolve any such dispute between them by negotiating promptly in good faith in face-to-face negotiations.
These face-to-face negotiations shall be conducted by the respective designated senior managers of each
Party responsible for their relationship, and shall be escalated internally by each Party as reasonably
necessary to seek resolution of the dispute. If the Parties are unable to resolve the dispute between them
through these face-to-face negotiations within thirty (30) business days following their commencement
or within such other period as the parties may otherwise mutually agree upon), then the parties shall
escalate the dispute to their most senior executives within their organization. If the Parties' most senior
executives are unable to resolve the dispute within thirty (30) business days or such other period as they
may mutually agreed, then either Party may pursue available legal and equitable remedies.
12. GOVERNING LAW AND VENUE. This Agreement shall be construed and interpreted in accordance
with the laws of the State of California, excluding any choice of law rules that may direct the application
of the laws of another jurisdiction. Any controversy or claim arising out of or in any way relating to this
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Agreement shall be litigated in a California Superior Court of competent jurisdiction; or if jurisdiction
over the action cannot be obtained in a California Superior Court, in a Federal District Court of competent
jurisdiction situated in the State of California, and Customer hereby consents to the personal jurisdiction
of such courts.
13. FORCE MAJEURE. A Party will be excused from a delay in performing, or a failure to perform, its
obligations under this Agreement (excluding Customer's payment obligations) to the extent such delay or
failure is caused by the occurrence of a Force Majeure Event. In such event, the performance times shall
be extended for a period of time equivalent to the time lost due to the Force Majeure Event. However, if
a Force Majeure Event (excluding any affecting Customer's payment obligations) continues more than
ninety (90) days, the party not relying on the excusable delay may, at its option, terminate the affected
Product Order Form or Work Order, in whole or in part, upon notice, without penalty or obligation to the
party suffering under the Force Majeure Event.
14. GENERAL TERMS. This Agreement contains the entire agreement between the parties regarding the
Services and supersedes any other prior oral or written agreements. In the event of any conflict or
inconsistency between the terms of this Agreement and any Work Order, such Work Order shall control.
Any different or additional provisions in purchase orders, invoices or similar documents issued by
Customer are hereby deemed refused by PG&E and such refused provisions will be unenforceable. Any
modifications hereto must be in writing and signed by the parties. A waiver by any party of any breach
will not constitute a waiver of any different or subsequent breach. If any part of this Agreement is invalid,
illegal or unenforceable for any reason, that portion shall be replaced with a valid provision appropriate to
the parties' original intent and the remainder shall be enforced.
IN WITNESS THEREOF, the parties have caused this Agreement to be executed as of the
Effective Date first set forth above.
PACIFIC GAS AND ELECTRIC COMPANY CUSTOMER
245 Market Street MC NI OD
San Francisco, CA 94105
By:
Signature)
Name: Roxanna Fong
Title: Manager
Date:
By:
Signature)
Name:
Title:
Date:
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EXHIBIT A
POTENTIAL ECMS
Agreement No: SST-XXXXX
Customer name)
Potential ECMs that may be included in a Work Order are set forth below:
a) Hydro -Electric Power Generation on the Nacimiento raw water transmission line,
b) Water Treatment Plant Ozone Generation System Upgrade
c) Water Treatment Plant Transfer Pump Station Back-up Power
d) Water Treatment Plant Transfer Pump Station Upgrades
e) Water Treatment Plant Photovoltaic (solar) Power Generation
f) Water Treatment Plant Photovoltaic (solar) Shade Canopy for Actiflo and Filter Basins
g) Water Treatment Plant Lighting Improvements
h) Water Treatment Plant HVAC and HVAC Control Improvements
i) Water Treatment Plant Service Water System Upgrades
j) Water Treatment Plant SCADA/Controls Upgrades
k) Reservoir #1 Photovoltaic (solar) Power Generation
1) Whale Rock Pump Station Upgrades,
m) Any other cost-effective ECM, including those that reduce Customer's energy consumption,
energy demand or energy costs, provide energy savings, improve energy reliability, and other
energy infrastructure improvements, and water conservation.
n) Design and/or scoping efforts in support of Authorization(s) other than the Authorization in
which such design and/or scoping efforts are ordered and under which they are compensated.
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FaPacific Gas and Agreement No: SST-XXXXX
Electric Company (Customer name)
EXHIBIT B
SAFETY WAIVER
PG&E has informed the Customer's on-site representative of the following condition(s) which, in
the opinion of PG&E's on-site representative, should be remedied before the Services may be resumed at
the Facility. Customer recognizes that if the below -listed condition at the Facility is not remedied as
recommended by PG&E, an accident may occur causing damage to the Facility, Equipment and/or injury
to persons, including but not limited to, the employees of Customer, PG&E and Subcontractors.
By signing this waiver, Customer acknowledges and accepts all liability associated with this
condition
Description of condition:
Equipment ID#: (If applicable)
Executed this _ day of
Facility name:
CUSTOMER
Sign:
Name (print):
Title
Date:
PACIFIC GAS AND ELECTRIC COMPANY
Sign:
Name (print):
Title:
Date:
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RESOLUTION NO. 10931 (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING APPLICATION TO THE
STATE OF CALIFORNIA OFFICE OF EMERGENCY SERVICES
HAZARD MITIGATION GRANT PROGRAM
WHEREAS, on July 2, 2018 the City of San Luis Obispo prepared a Notice of Interest
through the California Governor's Office of Emergency Services Hazard Mitigation Grant
Program (HMGP); and
WHEREAS, the California Governor's Office of Emergency Services Hazard Mitigation
Grant Program (HMGP) aims to reduce loss of life and property by lessening the impact of
disasters, with an emphasis on mitigation before the next disaster to reduce human and financial
consequences later; and
WHEREAS, on July 20, 2018 staff received confirmation from the California Governor's
Office of Emergency Services that the City's Notice of Interest had been reviewed and determined
to represent an eligible HGMP activity; and
WHEREAS; the City seeks to improve water system reliability by installing a new,
permanent standby generator and supporting infrastructure at the City's Water Treatment Plant to
power the Transfer Pump Station in the event of a power outage.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The Director of Utilities, or Deputy Director Utilities — Water, is hereby
authorized to execute for and on behalf of the City of San Luis Obispo, a public entity established
under the laws of the State of California, this application and to file it with the California
Governor's Office of Emergency Service.
SECTION 2. This is a Grant specific resolution and is effective for only #DR -4434-0507
Water and Wastewater System Standby Generator Improvements).
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SECTION 3. Environmental Review. The City Council hereby determines that a grant
application is not a "project" as defined under CEQA. The Water System Standby Generator
project is categorically exempt from environmental review per CEQA Guidelines, Section 15301
Existing Facilities).
Upon motion of Council Member Rivoire, seconded by Vice Mayor Christianson, and on the
following roll call vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 21" day of August 2018.
Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
r
C
J. Stine Dietrick
ity Attorney
IN WITNESS WHEREOF, I have hereunto set my and and affixed the official seal of the City
of San Luis Obispo, California, this 56 day of 1•t , J
Teresa Purrington
City Clerk
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R ________
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING REIMBURSEMENT TO THE
CALIFORNIA ENERGY COMMISSION FOR FINANCING THE WATER
ENERGY EFFICIENCY PROJECT
WHEREAS, the California Energy Commission provides loans to schools, hospitals,
local governments, special districts, and public care institutions to finance energy efficiency
improvements; and
WHEREAS; the City of San Luis Obispo desires to install certain energy efficiency
upgrades with the Water Energy Efficiency Project (the “Project”); and
WHEREAS; the City of San Luis Obispo desires to finance the cost of the construction
of the Project.
NOW THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The Director of Utilities, or Deputy Director Utilities – Water, is hereby
authorized to apply for the loan from the California Energy Commission to implement energy
efficiency measures.
SECTION 2. Environmental Determination. In compliance with the California
Environmental Quality Act (CEQA), the City Council of the City of San Luis Obispo finds that
the activity funded by the loan is a project that is exempt under Class 1, Existing Facilities and
Class 28, Small Hydroelectric Projects at Existing Facilities.
SECTION 3. If recommended for funding by the California Energy Commission, the
City Council authorizes the City of San Luis Obispo to accept a loan up to $3,000,000 for the
Water Energy Efficiency Project.
SECTION 4. The amount of the loan will be paid in full, plus interest, under the terms
and conditions of the Loan Agreement, Promissory Note and Tax Certificate of the California
Energy Commission.
SECTION 5. The Director of Utilities, or Deputy Director Utilities – Water, is hereby
authorized and empowered to execute in the name of the City of San Luis Obispo all necessary
documents to implement and carry out the purpose of this resolution, and to undertake all actions
necessary to undertake and complete the Water Energy Efficiency project.
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Resolution No. _____(2018) Page 2
R ________
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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Meeting Date: 11/13/2018
FROM: Daryl Grigsby, Public Works Director
Prepared By: Shelsie Kloepper, Engineer II
SUBJECT: JOB ORDER CONTRACT 2018 – TREE MAINTENANCE
RECOMMENDATIONS
1. Approve Special Provisions for Job Order Contract 2018 – Tree Maintenance; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the contract to the lowest responsible bidder.
DISCUSSION
Job Order Contracting is an alternative bidding procedure that was approved by the voters and
added to the City’s Charter on November 5, 2002 (Attachment A). It provides for on-call
infrastructure repair contracting. The Job Order Contract (JOC) provisions enable the City to
perform construction projects for the repair, remodeling or other repetitive work under a
competitively bid unit price contract. This ensures the City gets a consistent price while speeding
project delivery where detailed design is not required.
The City first implemented a JOC program shortly after the Charter amendment was approved by
the voters. The Gordian Group was retained to develop the JOC program in which 160,000 pre-
priced construction tasks were developed, and the contractors bid a percentage mark-up. The
City used this contract for 2 years. The 2003 JOC lapsed in 2005.
Engineering staff revisited the JOC concept in 2011 and created a more focused specification
targeting trench repairs needed after emergency pipeline repairs occur. Instead of bidding a JOC
program which covers every imaginable type of work and essentially pays the contractor for each
worker and each piece of equipment that is used to complete the work, a program was developed
to bid the finished product. This methodology is consistent with other types of projects the City
completes and has made it simpler for the contractors to prepare a nd submit proposals and
streamlined delivery of work.
This JOC is focused on City Tree Maintenance needs including tree pruning, planting, removal
and emergency response work. When maintenance work covered under the JOC is needed, the
work cost is calculated based on the contract unit prices. Staff creates a Task Order with the
work scope identified to the contractor.
ENVIRONMENTAL REVIEW
This project is exempt from environmental review pursuant to Section 15301 Class 1 (Existing
Facilities) of the California Environmental Quality Act (CEQA) Guidelines since it is a
maintenance and replacement project of existing facilities. A Notice of Exemption has been
filed with the Community Development Department.
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FISCAL IMPACT
This contract does not obligate any funds for work needed to maintain the urban forest. Once a
JOC has been executed, work will be scoped, and task orders issued for work within
appropriated budget. The funding sources for this work are primarily the Urban Forest, Parks
Maintenance, and Flood Control Operating Program Funds as well as the Street Reconstruction
and Resurfacing Capital Improvement Account; but others may be used based upon needs. In
addition, funds have been administratively identified in FY 17-18 Year End carryover to increase
available funds in the amount of $175,000 for citywide tree pruning and $175,000 for repairs to
tree root damaged infrastructure and tree plantings within the downtown core.
ALTERNATIVE
Deny authorization to advertise. The City Council may choose not to authorize the
advertisement of the project. This is not recommended because the JOC program is a cost-
effective way to get necessary maintenance work completed in a short period of time.
Attachments:
a - "Council Reading File" - 04152003, BUS 6A - JOB ORDER CONTRACTING AND
ALTERNATIVE BIDDING PROCEDURE
b - "Council Reading File" - R-10621 Updated Purchasing Guidelines
c - "Council Reading File" - Special Provisions
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SPECIAL PROVISIONS
FOR
CITY OF SAN LUIS OBISPO
JOB ORDER CONTRACT 2018 – TREE MAINTENANCE
Specification No. 1000003
NOVEMBER 2018
PUBLIC WORKS DEPARTMENT
ENGINEERING DIVISION
919 Palm Street
San Luis Obispo, CA 93401
(805) 781-7200
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JOB ORDER CONTRACT – 2018 – TREE MAINTENANCE
Specification No. 1000003
Approval Date: November 13, 2018
November 14, 2018
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TABLE OF CONTENTS
NOTICE TO BIDDERS ..................................................................................................... I
BID SUBMISSION ...................................................................................................................................... I
BID DOCUMENTS .................................................................................................................................... II
PROJECT INFORMATION........................................................................................................................ II
QUALIFICATIONS .................................................................................................................................... III
AWARD .................................................................................................................................................... IV
ACCOMMODATION .................................................................................................................................. V
BID FORMS .................................................................................................................... A
BID ITEM LIST FOR JOB ORDER CONTRACT 2018 – TREE MAINTENANCE SPECIFICATION NO.
1000003 ..................................................................................................................................................... A
LIST OF SUBCONTRACTORS ................................................................................................................ C
PUBLIC CONTRACT CODE SECTION 10285.1 STATEMENT .............................................................. D
PUBLIC CONTRACT CODE SECTION 10162 QUESTIONNAIRE ......................................................... D
PUBLIC CONTRACT CODE SECTION 10232 STATEMENT ................................................................. D
LABOR CODE SECTION 1725.5 STATEMENTS ................................................................................... D
NON-COLLUSION DECLARATION .......................................................................................................... F
BIDDER ACKNOWLEDGEMENTS .......................................................................................................... G
QUALIFICATIONS .................................................................................................................................... H
ATTACH BIDDER'S BOND TO ACCOMPANY BID ................................................................................... I
SPECIAL PROVISIONS .................................................................................................. 1
DIVISION I GENERAL PROVISIONS ....................................................................................................... 1
1 GENERAL ........................................................................................................................................... 1
2 BIDDING ............................................................................................................................................. 1
4 SCOPE OF WORK ............................................................................................................................. 2
7 LEGAL RELATIONS AND RESPONSIBILITY TO THE PUBLIC ....................................................... 2
8 PROSECUTION AND PROGRESS ................................................................................................... 2
DIVISION II GENERAL CONSTRUCTION ............................................................................................... 3
12 TEMPORARY TRAFFIC CONTROL ................................................................................................ 3
20 LANDSCAPE .................................................................................................................................... 3
APPENDIX A - FORM OF AGREEMENT ....................................................................... 1
APPENDIX B TREE MAINTENANCE FORM .................................................................. 4
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NOTICE TO BIDDERS
BID SUBMISSION
Sealed bids will be received by the City of San Luis Obispo at the Public Works
Administration Office located at 919 Palm Street, California 93401, until
2:00 p.m. on December 13, 2018
at which time they will be publicly opened and read aloud. Submit bid in a sealed envelope
plainly marked:
JOB ORDER CONTRACT 2018 – TREE MAINTENANCE
Any bid received after the time and date specified will not be considered and will be
returned to the bidder unopened. Bids received by Fax or Email will not be considered.
By submission of bid you agree to comply with all instruction and requirements in this
notice and the contract documents.
All bids must be submitted on the Bid Item List form(s) provided and submitted with all
other Bid Forms included in these Special Provisions.
Each bid must be accompanied by either a:
1. certified check
2. cashier's check
3. bidder's bond
made payable to the City of San Luis Obispo for an amount equal to ten percent of the
bid amount as a guaranty. Guaranty will be forfeited to the City San Luis Obispo if the
bidder, to whom the contract is awarded, fails to enter into the contract.
The City of San Luis Obispo reserves the right to accept or reject any or all bids or waive
any informality in a bid.
All bids are to be compared based on the City Engineer's estimate of the quantities of
work to be done, as shown on the Bid Item List.
Bids will only be accepted from bidders that are licensed in compliance with the provisions
of Chapter 9, Division III of Business and Professions Code.
The award of the contract, if awarded, will be to the lowest responsive bid submitted by a
responsible contractor whose bid complies with the requirements prescribed. If the
contract is awarded, the contract will be awarded within 60 calendar days after the
opening of the bids.
Failure to raise defects in the notice to bidders or bid forms prior to bid opening constitute
a waiver of those defects.
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ii
BID DOCUMENTS
A copy of the plans and special provisions may be downloaded, free of charge, from the
City’s website at:
www.slocity.org/government/department-directory/public-works/public-works-bids-
proposals
A printed copy may be obtained at the office of the City Engineer by paying a non-
refundable fee of:
1. $15.00 if picked up in person, or
2. $25.00 if by mailing to the office of the City Engineer
Request must include Specification Number. The office of the City Engineer is located at:
919 Palm Street
San Luis Obispo, CA 93401
Standard Specifications and Engineering Standards referenced in the Special Provisions
may be downloaded, free of charge, from the City’s website at:
www.slocity.org/government/department-directory/public-works/documents-
online/construction-documents
A printed copy may be obtained by paying a non-refundable fee of:
1. $16.00 if picked up in person, or
2. $21.00 if by mailing to the office of the City Engineer
You are responsible to obtain all issued addenda prior to bid opening. Addenda will be
available to download at the City’s website listed above or at the office of the City
Engineer.
Contact the project manager, Shelsie Kloepper at (805)783-7735 or the Public Works
Department at (805) 781-7200 prior to bid opening to verify the number of addenda
issued.
You are responsible to verify your contact information is correct on the plan holders list
located on the City’s website at:
www.slocity.org/government/department-directory/public-works/public-works-bids-
proposals.
PROJECT INFORMATION
In general, the project consists of pruning, removing, and planting trees and associated
work on an as needed basis.
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iii
The project estimated construction cost is $400,000
Contract time is established as 36 months.
The fixed liquidated damages amount is established at $500 per day for failure to
complete the work within the contract time.
In compliance with section 1773 of the Labor Code, the State of California Department of
Industrial Relations has established prevailing hourly wage rates for each type of
workman. Current wage rates may be obtained from the Division of Labor at:
https://www.dir.ca.gov/oprl/DPreWageDetermination.htm
This project is subject to compliance monitoring and enforcement by the Department of
Industrial Relations.
QUALIFICATIONS
You must possess a valid Class D-49 Contractor's License and Certification as an ISA
Certified Arborist at the time of the bid opening.
You and any subcontractors required to pay prevailing wage must be registered
with the Department of Industrial Relations pursuant to Section 1725.5 of the Labor
Code.
You must have experience constructing projects similar to the work specified for this
project. Provide three similar reference projects completed as either the prime or
subcontractor. All referenced projects must have been completed within the last five years
from this project’s bid opening date.
One of the three reference projects must have been completed under contract with
a city, county, state or federal government agency as the prime contractor.
All the referenced projects must be for tree maintenance work.
Failure to provide reference projects as specified in this section and as required on the
qualification form is cause to reject a bid as being non-responsive.
The City reserves the right to reject any bid based on non-responsiveness if a bidder fails
to provide a bid that complies with all bidding instructions.
The City reserves the right to reject a responsive bid based on the non-responsibility of
the bidder if the Director of Public Works or Designee finds, after providing notice and a
hearing to the bidder, that the bidder lacks the
1. knowledge
2. experience,
3. or is otherwise not responsible
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iv
as defined in Section 3.24 of the San Luis Obispo Municipal Code to complete the project
in the best interest of the City.
Rejected bidders may appeal this determination. Appeal must comply with the
requirements in this Notice to Bidders.
It is the City of San Luis Obispo’s intent to award the contract to the lowest responsive
bid submitted by a responsible bidder. If in the bidder’s opinion the contract has been or
may be improperly awarded, the bidder may protest the contract award.
Protests must be filed no later than five working days after either:
1. bid opening date
2. notification of rejected bid.
Protest must be in writing and received by the project manager located at:
919 Palm Street
San Luis Obispo, CA 93401.
Valid protests must contain the following information:
1. the reasons for the protest
2. any supporting documentation
3. the ruling expected by the City to remedy the protest.
Any protest not containing all required information will be deemed invalid and rejected.
The City will consider additional documentation or other supporting information regarding
the protest if submitted in compliance to the specified time limits. Anything submitted after
the specified time limit will be rejected and not be considered.
The Director of Public Works or Designee may request additional information to be
submitted within three days of the request, unless otherwise specified, and will notify the
protester of ruling within ten days of determination.
If the protester is not satisfied with ruling, the protester may appeal the ruling to the City
Council in compliance with Chapter 1.20 of the City of San Luis Obispo Municipal Code.
Pursuant to the Public Records Act (Government Code, § 6250, et seq.), the City will
make public records available upon request.
AWARD
The lowest bidder will be determined using the BID TOTAL.
As a condition to executing a contract with the City, two bonds each equal to one hundred
percent of the total contract price are required in compliance with Section 3-1.05 of the
Standard Specifications.
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You may substitute securities for moneys withheld under the contract in compliance with
the provisions of the Public Contract Code, Section 10263.
ACCOMMODATION
If any accommodations are needed to participate in the bid process, please contact
Kathryn Stanley at (805) 781-7200 or by Telecommunications Device for the Deaf at (805)
781-7107. Requests should be made as early as possible in the bidding process to allow
time for accommodation.
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A
BID FORMS
All bid forms must be completed and submitted with your bid. Failure to submit these
forms and required bid bond is cause to reject the bid as nonresponsive. Staple all bid
forms together.
THE UNDERSIGNED, agrees that they have carefully examined:
1. the location of the proposed work
2. the plans and specifications
3. read the accompanying instructions to bidders
and propose to furnish all:
4. materials
5. labor
to complete all the required work satisfactorily in compliance with
6. plans
7. specifications
8. special provisions
for the prices set forth in the bid item list:
BID ITEM LIST FOR JOB ORDER CONTRACT 2018 – TREE MAINTENANCE
SPECIFICATION NO. 1000003
Item Item Unit of Estimated Item Price Total
No. SS(1) Description Measure Quantity (in figures) (in figures)
1 20 Pruning – Broad Leaf and Conifer
Trees (3 to 6 inches DSH)EA 10
2 20 Pruning – Broad Leaf and Conifer
Trees (6 to 12 inches DSH)EA 140
3 20 Pruning – Broad Leaf and Conifer
Trees (12 to 24 inches DSH)EA 190
4 20 Pruning – Broad Leaf and Conifer
Trees (24 to 36 inches DSH)EA 150
5 20 Pruning – Broad Leaf and Conifer
Trees (36 to 42 inches DSH)EA 100
6 20 Pruning – Broad Leaf and Conifer
Trees (over 42 inches DSH)EA 20
7 20 Pruning – Palm Tree EA 60
8 20 Tree Removal (12 to 24 inches
DSH) EA 5
9 20 Tree Removal (24 to 36 inches
DSH) EA 5
10 20 Tree Removal (36 to 42 inches
DSH) EA 5
11 20 Tree Removal (over 42 inches DSH) EA 5
12 20 Stump Grinding DI 5000
13 20 Emergency Call Out EA 30
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Item Item Unit of Estimated Item Price Total
No. SS(1) Description Measure Quantity (in figures) (in figures)
14 20 Remove Fallen Limb (3 to 6 inches
diameter) EA 10
15 20 Remove Fallen Limb (6 to 12 inches
diameter) EA 10
16 20 Remove Fallen Limb (12 to 24
inches diameter) EA 9
17 20 Remove Fallen Limb (24 to 36
inches diameter) EA 1
18 20 Creek Tree Area Removal (12 to 24
inches DSH) EA 5
19 20 Creek Tree Area Removal (24 to 36
inches DSH) EA 4
20 20 Creek Tree Area Removal (36 to 42
inches DSH) EA 3
21 20 Creek Tree Area Removal (over 42
inches DSH) EA 2
22 20 Furnish and Plant (15 gallon) EA 5
23 20 Furnish and Plant (24” box) EA 5
24 20 Furnish and Plant (36” box) EA 5
25 12 Traffic Control - Eng. Std. 7310 – Fig A HR 8
26 12 Traffic Control - Eng. Std. 7310 – Fig B HR 8
27 12 Traffic Control - Eng. Std. 7310 – Fig C HR 8
28 12 Traffic Control - Eng. Std. 7310 – Fig D HR 8
29 12 Traffic Control - Eng. Std. 7310 – Fig E HR 8
30 12 Traffic Control - Eng. Std. 7310 – Fig F HR 8
31 12 Traffic Control - Eng. Std. 7310 – Fig G HR 8
32 12 Traffic Control - Eng. Std. 7310 – Fig H HR 8
33 12 Traffic Control - Eng. Std. 7310 – Fig I HR 10
34 12 Traffic Control - Eng. Std. 7310 – Fig J HR 10
35 12 Traffic Control - Eng. Std. 7310 – Fig K HR 10
36 12 Traffic Control - Eng. Std. 7310 – Fig L HR 10
37 12 Traffic Control - Eng. Std. 7310 – Fig M HR 10
38 12 Traffic Control - Eng. Std. 7310 – Fig N HR 10
39 12 Traffic Control - Eng. Std. 7310 – Fig O HR 10
40 12 Traffic Control - Eng. Std. 7310 – Fig P HR 10
41 12 Minor Traffic Control HR 1000
Bid Total $
Company Name:
(1) refers to section in the Standard Specifications, with modifications in the Special Provisions, that describe required
work.
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LIST OF SUBCONTRACTORS
Pursuant to Section 4100 of the Public Contracts Code and section 2-1.33C of the
standard specifications, the Bidder is required to furnish the following information for each
Subcontractor performing more than 1/2 percent (0.5%) of the total base bid. Do not list
alternative subcontractors for the same work. Subcontracting must not total more than
fifty percent (50%) of the submitted bid except as allowed in section 5-1.13 of the standard
specifications.
For Streets & Highways projects, subcontractors performing less than ten thousand dollars
($10,000) worth of work need not be mentioned. Subcontractors required to pay
prevailing wage, must be registered with the Department of Industrial Relations
pursuant to Labor Code section 1725.5 to be listed.
NOTE: If there are no subcontractors, write “NONE” and submit with bid.
Name Under Which
Subcontractor is Licensed License Number
DIR Public
Works
Registration
Number
Address and Phone
Number of Office, Mill or
Shop
Specific
Description of
Subcontract
% of
Total
Base
Bid
Attach additional sheets as needed.
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PUBLIC CONTRACT CODE SECTION 10285.1 STATEMENT
In compliance with Public Contract Code Section 10285.1 (Chapter 376, Stats. 1985), the
bidder hereby declares under penalty of perjury under the laws of the State of California
that the bidder, or any subcontractor to be engaged by the bidder, has ____, has not
____ been convicted within the preceding three years of any offenses referred to in that
section, including any charge of fraud, bribery, collusion, conspiracy, or any other act in
violation of any state or federal antitrust law in connection with the bidding upon, award
of, or performance of, any public works contract, as defined in Public Contract Code
Section 1101, with any public entity, as defined in Public Contract Code Section 1100,
including the Regents of the University of California or the Trustees of the California State
University. The term "bidder" is understood to include any partner, member, officer,
director, responsible managing officer, or responsible managing employee thereof, as
referred to in Section 10285.1.
NOTE: The bidder must place a check mark after "has" or "has not" in one of the blank
spaces provided. The above Statement is part of the Bid. Signing this Bid on the signature
portion constitute signature of this Statement. Bidders are cautioned that making a false
certification may subject the certifier to criminal prosecution.
PUBLIC CONTRACT CODE SECTION 10162 QUESTIONNAIRE
In compliance with Public Contract Code Section 10162, the Bidder must complete, under
penalty of perjury, the following questionnaire:
Has the bidder, any officer of the bidder, or any employee of the bidder who has a
proprietary interest in the bidder, ever been disqualified, removed, or otherwise prevented
from bidding on, or completing a federal, state, or local government project because of a
violation of law or a safety regulation?
Yes No
If the answer is yes, attach a letter explaining the circumstances
PUBLIC CONTRACT CODE SECTION 10232 STATEMENT
In compliance with Public Contract Code Section 10232, you hereby state under penalty of
perjury, that no more than one final unappealable finding of contempt of court by a federal
court has been issued against you within the immediately preceding two-year period
because of your failure to comply with an order of a federal court which orders you to comply
with an order of the National Labor Relations Board.
LABOR CODE SECTION 1725.5 STATEMENTS
The bidder has delinquent liability to an employee or the state for any assessment of back
wages or related damages, interest, fines, or penalties pursuant to any final judgment,
order, or determination by a court or any federal, state, or local administrative agency,
including a confirmed arbitration award. Any judgment, order, or determination that is
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BID FORMS
BID FORMS
E
under appeal is excluded, provided that the contractor has secured the payment of any
amount eventually found due through a bond or other appropriate means.
Yes No
The bidder is currently debarred under Section 1777.1 or under any other federal or state
law providing for the debarment of contractors from public works.
Yes No
NOTE: The above Statements and Questionnaire are part of the Bid. Signing this Bid on
the signature portion constitute signature of this Statement and Questionnaire. Bidders are
cautioned that making a false certification may subject the certifier to criminal prosecution.
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NON-COLLUSION DECLARATION
I, , declare that
I am of ,
the party making the foregoing bid that the bid is not made in the interest of, or on behalf
of, any undisclosed person, partnership, company, association, organization, or
corporation; that the bid is genuine and not collusive or sham; that the bidder has not
directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and
has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or
anyone else to put in a sham bid, or that anyone refrained from bidding; that the bidder has
not in any manner, directly or indirectly, sought by agreement, communication, or
conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any
overhead, profit, or cost element of the bid price, or of that of any other bidder, or to secure
any advantage against the public body awarding the contract of anyone interested in the
proposed contract; that all statements contained in the bid are true; and, further, that the
bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof,
or the contents thereof, or divulged information or data relative thereto, or paid, and will not
pay, any fee to any corporation, partnership, company association, organization, bid
depository, or to any member or agent thereof to effectuate a collusive or sham bid.
Executed on , 20 , in __
I declare under penalty of perjury under the laws of the State of California that the foregoing
is true and correct.
(Signature and Title of Declarant)
(SEAL)
Subscribed and sworn to before me
this _______day of _________, 20_____
Notary Public
Company Name:____________________
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BIDDER ACKNOWLEDGEMENTS
By signing below, the bidder acknowledges and confirms that this bid is based on the information contained
in all contract documents, including the notice to bidders, plans, specifications, special provisions, and
addendum number(s) . (Note: You are responsible to verify the number of
addenda prior to the bid opening.)
The undersigned further agrees that in case of default in executing the required contract, with necessary
bonds, within eight days, (not including Saturdays, Sundays, and legal holidays), after having received a
mailed notice that the contract is ready for signature, the proceeds of the check or bond accompanying his
bid will become the property of the City of San Luis Obispo.
Licensed in accordance with an act providing for the registration of contractors, License No. , Expiration
Date .
The above statement is made under penalty of perjury, and any bid not containing this information "will be
considered non-responsive and will be rejected” by the City.
Signature of Bidder
(Print Name and Title of Bidder)
DIR– Public Works
Registration No:
Business Name (DBA):
Owner/Legal Name:
Indicate One: Sole-proprietor Partnership Corporation
List Partners/Corporate Officers:
Name Title
Name Title
Name Title
Business Address
Street Address
Mailing Address
City, State, Zip Code
Phone Number
Fax Number
Email Address
Date
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BID FORMS
H
QUALIFICATIONS
Failure to furnish complete reference information ON THIS FORM, as specified in this
project’s Notice to Bidders and indicated below, is cause to reject the bid. Additional
information may be attached but is not a substitute for this form.
Reference Number 1
Customer Name & Contact Individual
Telephone & Email
Project Name (Site Address):
Did this project include tree
maintenance work? Yes □ No □
Describe the services provided and how this project is similar to
that which is being bid:
Date project completed:
Was this contract for a public agency?
Yes □ No □
Reference Number 2
Customer Name & Contact Individual
Telephone & Email
Project Name (Site Address):
Did this project include tree
maintenance work? Yes □ No □
Describe the services provided and how this project is similar to
that which is being bid:
Date project completed:
Was this contract for a public agency?
Yes □ No □
Reference Number 3
Customer Name & Contact Individual
Telephone & Email
Project Name (Site Address):
Did this project include tree
maintenance work? Yes □ No □
Describe the services provided and how this project is similar to
that which is being bid:
Date project completed:
Was this contract for a public agency?
Yes □ No □
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Item 11
BID FORMS
BID FORMS
I
ATTACH BIDDER'S BOND TO ACCOMPANY BID
Know all men by these presents:
That we ____________________________________________, AS PRINCIPAL, and
_______________________________________________________, AS SURETY, are held and firmly
bound unto the City of San Luis Obispo in the sum of:
____________________________________________________ Dollars (_____________) to be paid to
said City or its certain attorney, its successors and assigns; for which payment, well and truly to be made, we
bind ourselves, our heirs, executors and administrators, successors or assigns, jointly and severally, firmly by
these presents:
THE CONDITION OF THIS OBLIGATION IS SUCH, that if the certain bid of the above
bounden ______________________________________________________________________
to construct ___________________________________________________________________
(insert name of street and limits to be improved or project)
dated _____________________ is accepted by the City of San Luis Obispo, and if the above
bounden _______________________________________________________, his heirs, executors,
administrators, successors, and assigns shall duly enter into and execute a contract for such construction and
shall execute and deliver the two bonds described within ten (10) days (not including Saturdays, Sundays, or
legal holidays) after the above bounden,
______________________________________________________, has received notice by and from the
said City of San Luis Obispo that said contract is ready for execution, then this obligation shall become null
and void; otherwise, it shall be and remain in full force and virtue.
IN WITNESS WHEREOF, we hereunto set our hands and seals this ___ day of ______, 20____.
Bidder Principal:
Signature Date
Title:
Surety:
Bidder's signature is not required to be notarized. Surety's signature must be notarized.
Equivalent form may be substituted
(Rev. 6-30-14)
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Item 11
SPECIAL PROVISIONS
1
SPECIAL PROVISIONS
ORGANIZATION
Special provisions are under headings that correspond with the main section heading of
the Standard Specifications. Each special provision begins with a revision clause that
describes or introduces a revision to the Standard Specifications. Any paragraph added
or deleted by a revision clause does not change the paragraph number of the Standard
Specifications for any other reference to a paragraph of the Standard Specifications.
DIVISION I GENERAL PROVISIONS
1 GENERAL
Add to Section 1-1.01 GENERAL:
The work must be done in compliance with the City of San Luis Obispo, Department of
Public Works:
1. Job Order Contract 2018 – Tree Maintenance Special Provisions
2. City of San Luis Obispo Standard Specifications and Engineering Standards –
2018 edition
3. State of California, Department of Transportation Standard Specifications and
Standard Plans – 2015 edition
In case of conflict between documents, governing ranking must comply with section 5-
1.02 of the City of San Luis Obispo’s Standard Specifications.
Failure to comply with the provisions of these sections is a material breach of contract:
1. Sections 5 through 8 of the Standard Specifications
2. Section 12 through 15 of the Standard Specifications
3. Section 77-1 of the Standard Specifications
4. Section 81 of the Standard Specifications
5. authorized working hours
6. OSHA compliance
Add to Section 1-1.06 ABBREVIATIONS:
Abbreviation Mean
DI Diameter Inch
DSH Diameter of tree at 4.5 feet above grade
2 BIDDING
Replace Section 2-1.33A BID DOCUMENT COMPLETION AND SUBMITTAL, General
with:
Furnish bid using blank forms provided in the Special Provisions. Bid must include all
forms and must be signed by the bidder.
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Item 11
SPECIAL PROVISIONS
SPECIAL PROVISIONS
2
4 SCOPE OF WORK
Add to Section 4-1.03 WORK DESCRIPTION:
Comply with the provisions of Section 12, 20 for general, material, construction, and
payment specifics.
This agreement will be the basis for Job Order Contract Task Orders to be issued.
Periodically, the Engineer will identify locations in need of maintenance work and contact
you for a Task Order Scoping meeting, to make repairs per items shown on the bid item
list. Within ten (10) days of verbal notification of work needs, you must meet the Engineer
on-site to review task scope and estimate quantities. The Engineer will issue a notice to
proceed to you, identify the number of working days for the Task Order, and identify the
work start date. Five (5) days after the notice to proceed has been issued, you must
submit a traffic control plan for review.
7 LEGAL RELATIONS AND RESPONSIBILITY TO THE PUBLIC
Add to Section 7-1.03B PUBLIC CONVENIENCE, Traffic Control Plan:
You are required to obtain a no-fee encroachment permit with the City Public Works
Department for each task order. Traffic control plans for work on arterial and collector
streets are required to be reviewed and approved in advance of the work.
Provide traffic control plan and traffic control application a minimum of 5 days in advance
of the work at the Public Works permit counter at 919 Palm Street. Traffic control plan
must be drawn to scale. Traffic control application may be obtained on the City’s website:
www.slocity.org/government/department-directory/public-works/documents-
online/construction-documents
Upon approval of the traffic control plan, the City will issue a no-fee Encroachment Permit.
Permittee is responsible to comply with all conditions of the traffic control plan. Complete
work using due diligence to restore free flowing of traffic.
8 PROSECUTION AND PROGRESS
Replace the 1st paragraph in Section 8-1.02A SCHEDULE, General with:
Provide a Level 1 schedule for this work.
Replace the 1st paragraph in Section 8-1.14A CONTRACT TERMINATION, General
with:
The Public Works Director may terminate the Contract if it serves the City’s best interest.
The City issues you a written notice, implements the termination, and pays you for any
authorized Task Order work that is complete.
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Item 11
SPECIAL PROVISIONS
SPECIAL PROVISIONS
3
DIVISION II GENERAL CONSTRUCTION
12 TEMPORARY TRAFFIC CONTROL
Add to Section 12-1.01 GENERAL:
Some work locations will require the implementation of a simplified traffic control. These
locations will be paid per the “Minor Traffic Control” bid item instead of one of the pre-
established figures in Engineering Standards – Appendix G. “Minor Traffic Control” will
apply to areas where impacts to public traffic are minor, on local streets, or where
approximately 10 cones- and the use of barricades- can delineate traffic around a work
area.
Add to Section 12-1.04 PAYMENT:
Traffic delineation and trench protection must be maintained at all times. If barricades are
required after sunset, lights/flashing beacons will be required. When traffic control is
required to be present during non-work hours, the cost will be included in the working day
hourly compensation.
20 LANDSCAPE
Add Section 20-6 TREE MAINTENANCE:
20-6.01 GENERAL
Furnish all labor, materials, equipment, and incidental items required to lawfully perform
the tree maintenance tasks described in this section as directed by the Engineer.
All tree pruning shall comply with the American National Standard Institute, ANSI A300
Pruning Standards and ANSI Z133.1, Safety Requirements for Tree Pruning, Trimming,
Repair or Removal. Tree care shall be consistent with the International Society of
Arboriculture Best Management Practices.
20-6.02 MATERIALS
Provide Nursey Quality Trees in compliance with Engineering Standards Appendix I –
Guidelines Specifications for Nursery Tree Quality.
20-6.03 CONSTRUCTION
20-6.03A General
Post streets 48 hours before work starts when parking must be restricted. Call City of San
Luis Obispo Police Department to verify “No Parking“ signs are posted properly to allow
towing of vehicles if required.
Do not use hooks, climbers, gaffs, or other climbing equipment that may penetrate the
bark of the tree.
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Item 11
SPECIAL PROVISIONS
SPECIAL PROVISIONS
4
Observe good arboricultural practices as recommended by the International Society of
Arboriculture Best Management Practices.
Ensure that all employees on site are ISA Certified Tree Workers or have equivalent or
higher ISA certification. Specialized work assignments may require the presence of a
Certified Arborist during the work.
Ensure that pruning will not disturb the nesting seasons of birds.
All work shall be reviewed in advance by an ISA Certified Arborist in conjunction with the
Engineer.
Comply with Cal-OSHA and ANSI standards for safe working practices.
Place and maintain all devices required to safely close a traffic lane when necessary.
Place and maintain traffic control in compliance with approved traffic control plan, current
City standards, and MUTCD guidelines.
Remove all equipment, materials, and debris from the worksite at the end of each
workday. Work includes sweeping of debris to prevent it from entering stormdrain inlets.
Where working over a stormdrain inlet, cover inlet to prevent debris entry until work is
complete.
Dump all wood and clean chips (except palm fronds) at a specified location within the City
Corporation Yard.
Dispose of all other debris in accordance with City, State and Federal laws.
20-6.03B Pruning – Broad Leaf and Conifer Trees
Prune tree as follows:
1. Remove all dead wood.
2. Lighten heavy branches to conform to the tree’s natural character.
3. Remove undesirable, weak, or crossing branches.
4. Remove suckers and water sprouts.
5. Remove stubs, broken branches, split branches, abnormal growth, mistletoe,
vines, and other parasitic vegetation.
6. Make all cuts at the branch collar.
7. Remove large or heavy branches with the three-cut method: under cut, over cut &
finish cut.
8. Balance the tree as appropriate for the species health and vigor.
9. Balance the tree as appropriate for the species health and vigor.
10. Follow the directions of the Urban Forest Supervisor/City Arborist or designee who
shall have the discretion to change or modify specifications to suit special
situations.
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SPECIAL PROVISIONS
SPECIAL PROVISIONS
5
20-6.03C Pruning – Palm Trees
Prune Tree as follows:
1. Remove all dead fronds.
2. Remove all seed pods and seed pod husks.
3. Remove all abnormal growth from the base of the tree trunk.
4. Elevate green or live fronds to 90 degrees.
5. Trim the base of the palm bead to form a “pineapple” effect.
6. Remove any nicked or partially cut fronds.
20-6.03D Pruning - Street and Sidewalk Clearances
Elevate trees where necessary to provide the following vertical clearances:
1. Eight feet over residential sidewalks
2. Twelve feet over residential streets
3. Ten feet over commercial sidewalks
4. Fourteen feet over commercial streets
20-6.03E Tree Removal
Remove trees including all topping and other operations necessary to safely remove the
tree. Do not fell tree or trunks onto pavement, sidewalk, or public spaces. Cut the tree
stump flush with adjacent finished surface including all roots. Immediately remove all
cutting and grindings from the work area.
Backfill cavity, if any, with clean earthen soil to normal ground level. Do not backfill with
wood chips. Clean adjacent surfaces.
20-6.03F Stump Grinding
Grind stumps to a depth of 24 inches below the normal surface level including all surface
roots. Backfill cavity with clean earthen soil to normal ground level. Do not backfill with
wood chips. Immediately after grinding each stump, remove grindings and clean work
area.
20-6.03G Emergency Work
You must be available twenty-four (24) hours a day, 7 day a week for emergency
response. You must provide a twenty-four (24) hour emergency contact phone number.
All requests to this phone number must be replied to within one (1) hour of initial phone
call, and crews must be dispatched within two (2) hours of from initial contact by the
Engineer.
20-6.03H Creek Area Tree Removal
Remove trees as identified by the Engineer from the creek area. Trees may be standing
or fallen. Immediately remove all cutting from creek and work area.
20-6.03I Tree Planting
Furnish and Plant tree in compliance with Engineering Standards.
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SPECIAL PROVISIONS
SPECIAL PROVISIONS
6
20-6.04 PAYMENT
Complete Tree Maintenance Form, included in Appendix B of these Special Provisions,
and furnish to the Engineer for all work performed. Email completed Tree Maintenance
Form to the Engineer monthly.
Emergency work payment will include all mobilization and personnel costs associated
with emergency call outs. Emergency call out work is any unplanned work required to be
completed outside normal business time between 7am to 4pm Monday through Friday.
This cost includes all mobilization costs including any premium rates of pay to mobilize
personnel and equipment necessary to complete emergency work. The actual work is
compensated by item of work on Bid Item List.
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Item 11
APPENDIX
1
APPENDIX A - FORM OF AGREEMENT
THIS AGREEMENT, made on this ______ day of ___________, 20__, by and between the City of
San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County, California
(hereinafter called the Owner) and COMPANY NAME (hereinafter called the Contractor).
WITNESSETH:
That the Owner and the Contractor for the consideration stated herein agree as follows:
ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be
performed, shall provide and furnish all of the labor, materials, necessary tools, expendable
equipment, and all utility and transportation services required to complete all the work of
construction of
NAME OF PROJECT, SPEC NO.
in strict compliance with the plans and specifications therefor, including any and all Addenda,
adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated.
It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said
work performed and completed under the direction and supervision and subject to the approval of
the Owner or its authorized representatives.
ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration for the
faithful performance of this Contract, subject to any additions or deductions as provided in the
Contract Documents, the contract prices as follows:
Item
No.
Item Unit of
Measure
Estimated
Quantity
Item Price
(in figures)
Total
(in figures)
1.
2.
3.
BID TOTAL: $ .00
Payments are to be made to the Contractor in compliance with and subject to the provisions
embodied in the documents made a part of this Contract.
Should any dispute arise respecting the true value of any work omitted, or of any extra work which
the Contractor may be required to do, or respecting the size of any payment to the Contractor,
during the performance of this Contract, said dispute shall be decided by the Owner and its decision
shall be final, and conclusive.
ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the following
documents, all of which are as fully a part thereof as if herein set out in full, and if not attached, as
if hereto attached:
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APPENDIX
2
1. Notice to Bidders and Information for Bidders
2. Standard Specifications and Engineering Standards
3. Special Provisions, any Addenda, Plans and Contract Change Orders
4. Caltrans Standard Specifications and Standard Plans 2015
5. Accepted Bid and Bid Bond
6. List of Subcontractors
7. Public Contract Code Sections 10285.1 Statement
8. Public Contract Code Section 10162 Questionnaire
9. Public Contract Code Section 10232 Statement
10. Labor Code Section 1725.5 Statements
11. Bidder Acknowledgements
12. Qualifications
13. Non-collusion Declaration
14. Agreement and Bonds
15. Insurance Requirements and Forms
ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal counsel
approved by City, and hold harmless City, its officers, officials, employees and volunteers from and
against all liability, loss, damage, expense, cost (including without limitation reasonable legal
counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or
in connection with the Contractor’s negligence, recklessness or willful misconduct in the
performance of work hereunder or its failure to comply with any of its obligations contained in this
Agreement, except such loss or damage which is caused by the sole or active negligence or willful
misconduct of the City. Should conflict of interest principles preclude a single legal counsel from
representing both the City and the Contractor, or should the City otherwise find the Contractor’s
legal counsel unacceptable, then the Contractor shall reimburse the City its costs of defense,
including without limitation reasonable legal counsel fees, expert fees and all other costs and fees
of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and
its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact
to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is
expressly understood and agreed that the foregoing provisions are intended to be as broad and
inclusive as is permitted by the law of the State of California and will survive termination of this
Agreement.
The Contractor obligations under this section apply regardless of whether such claim, charge,
damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or
penalty, or liability was caused in part or contributed to by an Indemnitee. However, without
affecting the rights of the City under any provision of this agreement, the Contractor shall not be
required to indemnify and hold harmless the City for liability attributable to the active negligence of
AGENCY, provided such active negligence is determined by agreement between the parties or by
the findings of a court of competent jurisdiction. In instances where the City is shown to have been
actively negligent and where the City’s active negligence accounts for only a percentage of the
liability involved, the obligation of the Contractor will be for that entire portion or percentage of
liability not attributable to the active negligence of the City.
ARTICLE V. It is further expressly agreed by and between the parties hereto that should there be
any conflict between the terms of this instrument and the bid of said Contractor, then this instrument
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Item 11
APPENDIX
3
shall control and nothing herein shall be considered as an acceptance of the said terms of said bid
conflicting herewith.
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year
and date first above written.
CITY OF SAN LUIS OBISPO
A Municipal Corporation
__________________________________
Derek Johnson, City Manager
APPROVED AS TO FORM CONTRACTOR:
Name of Company
________________________________
By:________________________________
J. Christine Dietrick
City Attorney
Name of CAO/President
Its: CAO/PRESIDENT
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Item 11
APPENDIX 4 APPENDIX B TREE MAINTENANCE FORM Work Date: Draw on attached map the following symbols: X Remove Tree ‐ How many trees were removed? O Add Tree ‐ How many trees were added? Street Address Species DSH (in)ConditionWork Type*Worker(s)Time SpentComments *Work Type: Regular Prune, Partial Prune – Clearance/ Disease / Limb / Hazard, Remove Fallen Tree, Remove Stump, Root Prune, Plant Tree, SprayPacket Pg. 202Item 11
APPENDIX
APPENDIX
5
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Item 11
Meeting Date: 11/13/2018
FROM: Michael Codron, Community Development Director
Prepared By: Xzandrea Fowler, Community Development Deputy Director
SUBJECT: ADOPTION OF A RESOLUTION TO PARTICIPATE IN THE
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM (SCIP)
RECOMMENDATIONS
It is recommended that the City Council adopt a Resolution (Attachment A):
1. Authorizing the City to become a participant of the Statewide Community Infrastructure
Program (SCIP); and
2. Authorizing the California Statewide Communities Development Authority (CSCDA) to
accept applications from property owners within the City’s jurisdiction (Exhibit A to the
Resolution); and
3. Approving the Form of Acquisition Agreement for use when applicable (Exhibit B to the
Resolution); and
4. Directing the City Clerk to transmit a certified copy of this resolution to the Secretary of the
Authority.
DISCUSSION
Background
The primary purpose of this item is to establish the State Community Infrastructure Program
(SCIP) to facilitate the planned annexation of both Fiero Lane and the East Airport properties
which are planned for and included in the Airport Area Specific Plan (AASP). A benefit in
establishing the SCIP program is that other developments can also use the program in the future
to finance impact fees and other infrastructure costs. The use of land-based financing is
supported by City policies1.
The Statewide Community Infrastructure Program (SCIP) is a program of the California
Statewide Communities Development Authority (the Authority). The Authority is a joint powers
authority sponsored by the League of California Cities and the California State Association of
Counties (CSAC). Membership in the Authority is open to every California city, county and
local agency, and most are already members. On September 18, 2018, the County Board of
1 Economic Development Strategic Plan - 1.5 Incentivize the creation of head-of-household jobs through use of the
following tools: a. Complete an infrastructure financing assessment to establish priorities for City investment in
infrastructure expansion. b. Explore financing strategies for infrastructure that address timing and/or the cost burden
of infrastructure, including development agreements, reimbursement agreements, infrastructure financing districts,
business improvement districts, the property-based financing mechanisms identified in the City’s specific plans, and
the City’s existing program for financing fees
Land Use Element Policy -1.13.6. Required Plans - The City shall not allow development of any newly annexed
private land until the City has adopted a specific or development plan for land uses, open space protection, roads,
utilities, the overall pattern of subdivision, and financing of public facilities for the area.
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Supervisors adopted a resolution to participate in SCIP as a “local agency”.
SCIP financing is available for development projects situated within cities or counties which
have elected to become SCIP participants. Eligibility to become a local agency member only
requires (a) membership in the Authority, and (b) adoption of a resolution making the election.
If property owners choose to participate in the SCIP, the selected public capital improvements
and the development impact fees owed to the City (or other local agency) will be financed by the
issuance of tax-exempt bonds by CSCDA. CSCDA will conduct a special assessment in full
compliance with the requirements of Article XIII D of the California Constitution (Proposition
218) on the owners’ properties to repay a portion of the bonds issued to finance the fees paid
with respect to the property.
With respect to impact fees, the property owners will either pay the impact fees at the time of
permit issuance or connection to City infrastructure (as is typically the case for annexations
where the property is already developed and pays fees to connect to water and wastewater
services) and will be reimbursed from the SCIP bond proceeds when the SCIP bonds are issued;
or the fees will be funded directly from the proceeds of the SCIP bonds. In the former case, the
City (or other local agency) is required to pass the fees along to the SCIP, and in the latter case,
the SCIP holds the bond proceeds representing the fees. The City then draws down monies from
the fee account as costs associated for which the fees were intended are incurred.
The SCIP provides an opportunity for a public-private partnership, benefiting property owners
and public agencies. The SCIP provides a mechanism for private property owners to afford
public capital improvements that would otherwise go unrealized, and at no cost to the public
agency serving as a “Local Agency.”
Benefits to SCIP Participation
The benefits to the property owners participating in the SCIP include:
• Only property owners who choose to participate in the program will have assessments on
their property. Property owners can choose to pay off the special assessments at any time.
• Instead of paying cash for public capital improvements and/or development impact fees, the
property owners receive low-cost, long term financing of those fees, freeing up capital for
other purposes. For property owners that are part of an annexation, the associated cost of
public capital improvements and/or development impact fees to connect to existing City
facilities (i.e., roadways, water and sewer facilities, etc.) can be financed by those property
owners through a special assessment.
• For home buyers, paying for the costs of public infrastructure through a special assessment is
superior to having those costs “rolled” into the cost of the home. Although the tax bill is
higher, the amount of the mortgage is smaller, making it easier to qualify. Moreover, because
the special assessment financing is at tax-exempt rates, it typically comes as lower cost than
mortgage rates.
• Owners of smaller projects, both residential and commercial, can have access to tax-exempt
financing of infrastructure. Before the inception of the SCIP, only projects large enough to
justify the formation of an assessment or community facilities district had access to tax-
exempt financing.
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Item 12
The benefits to the City participating as a “Local Agency” in the SCIP include:
• As in conventional assessment financing, the City is not liable to repay the bonds issued by
CSCDA or the assessments imposed on the participating properties.
• CSCDA handles all district formation, district administration, bond issuance and bond
administration functions. A participating city can provide tax-exempt financing to property
owners through the SCIP while committing limited staff time to administer the program.
• Providing tax-exempt financing helps participating cities and counties cushion the impact of
rising public capital improvements costs and development impact fees on property owners.
• The availability of financing will encourage developers to obtain permits and pay fees in
larger blocks, giving the participating city immediate access to revenues for public
infrastructure, rather than receiving a trickle of revenues stretched out over time. As part of
the entitlement negotiation process, the possibility of tax-exempt financing of fees can be
used to encourage a developer to pay fees up front.
• The SCIP finance process is summarized in the SCIP Manual of Procedures, included as
Attachment B.
Other Agency Involvement/Impact
Council adoption of the resolution authorizes the City to become a participant of SCIP and a
“Local Agency.” Sponsoring an application to CSCDA to finance, through SCIP, impact fees
and infrastructure improvements needed in advance of annexing property within an
unincorporated area into city limits (i.e. Fiero Lane and East Airport) is an example of serving as
a “Local Agency.”
The Fiero Lane Water Company (FLWC), a mutual water company that provides water and
sewer service to approximately 40 acres of unincorporated land within the City of San Luis
Obispo’s urban reserve line and sphere of influence has initiated steps to annex into the City. As
a “Local Agency,” the City sponsorship of FLWC’s application to CSCDA to finance - through
SCIP - the impact fees and infrastructure improvements that are needed in advance of annexing
into the City.
The City supports FLWC in proceeding with the annexation process, pending improvements to
the water and wastewater infrastructure. In the interim, the San Luis Obispo Local Agency
Formation Commission has approved an Outside User Agreement authorizing the City to provide
water and wastewater service to FLWC. The formal annexation application is pending efforts to
define and fund the detailed improvements required for permanent connections to the City
systems. On September 18, 2018, the County Board of Supervisors authorized County
participation in SCIP and will also serve as a “Local Agency.” If the City were to become a
participant of SCIP, the City would assume the lead on FLWC’s application for SCIP financing
as the annexation process progresses.
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Item 12
City Involvement/Impact
Council adoption of the SCIP Resolution will authorize the City to join SCIP; authorizes
CSCDA to accept applications from property owners within the City’s planning jurisdiction to
apply for tax-exempt financing of public capital improvements and development impact fees
through the SCIP; approves the Form of Acquisition Agreement for use when applicable; which
contributes to a prosperous community in alignment with the City’s Economic Development
Strategic Plan.
Community Outreach
The property owners for FLWC, in compliance with their Memorandum of Agreement with the
City, have already submitted an application to SCIP to finance the cost of water and sewer
development impact fees and infrastructure improvements. City staff have discussed SCIP with
the East Airport Area property owners, and they have expressed interest in utilizing SCIP to
finance the cost of water and sewer development impact fees and infrastructure improvements
that are associated with their proposed annexation into the City. City participation in SCIP will
enable other property owners to finance public capital improvements and/or development impact
fees for public capital improvements imposed on new development or associated with
annexation.
Public Notice
A public hearing noticed was posted in a newspaper of general circulation at least 5 days prior to
the meeting date.
CONCURRENCES
The City Attorney has reviewed and approved the attached SCIP Resolution, including Exhibit
B, Form of Agreement, as to legal form and effect.
ENVIRONMENTAL REVIEW
Adopting a resolution authorizing the City to join the Statewide Community Infrastructure
Program is not subject to the provisions of the California Environmental Quality Act (CEQA)
because it is not a project as defined in CEQA Guidelines Section 15378 (Definitions – Project).
In December 2015, the City Council approved an Addendum to the Airport Area and Margarita
Area Environmental Impact Report (adopted August 23, 2005 and amended September 2, 2014)
that analyzed potential impacts of the 40-acre annexation area currently served by FLWC.
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FISCAL IMPACT
There are no costs to the City for becoming a member of the SCIP. Should the City Council
approve the resolution to join SCIP, the City will not be liable to repay the bonds issued by
CSCDA or the assessments imposed on the participating properties. CSCDA handles all district
formation, district administration, bond issuance and bond administration functions. In advance
of participating in the SCIP, FLWC has entered into a Reimbursement Agreement for all Public
Works costs associated with sponsoring its SCIP application and serving as a “Local Agency.”
There is no additional City cost associated with FLWC’s request.
ALTERNATIVES
Council could take no action regarding the resolution authorizing City participation in
SCIP. This action is not recommended because the SCIP provides an opportunity for a public-
private partnership, benefiting property owners and public agencies by providing a mechanism
for private property owners to afford public capital improvements that would otherwise go
unrealized, and at no cost to the City.
Attachments:
a - Resolution Authorizing SCIP Participation
b - SCIP Manual of Procedures
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Item 12
RESOLUTION NO. ________ (2018 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE CITY TO JOIN THE
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM;
AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM
PROPERTY OWNERS, CONDUCT SPECIAL ASSESSMENT
PROCEEDINGS AND LEVY ASSESSMENTS WITHIN THE
TERRITORY OF THE CITY OF SAN LUIS OBISPO; APPROVING
FORM OF ACQUISITION AGREEMENT FOR USE WHEN
APPLICABLE; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the
“Authority”) is a joint exercise of powers authority the members of which include numerous
cities and counties in the State of California, including the City of San Luis Obispo (the “City”);
and
WHEREAS, the Authority has established the Statewide Community Infrastructure
Program (“SCIP”) to allow the financing of certain development impact fees (the “Fees”) levied
in accordance with the Mitigation Fee Act (California Government Code Sections 66000 and
following) and other authority providing for the levy of fees on new development to pay for
public capital improvements (collectively, the “Fee Act”) through the levy of special assessments
pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Sections
10000 and following) (the “1913 Act”) and the issuance of improvement bonds (the “Local
Obligations”) under the Improvement Bond Act of 1915 (Streets and Highways Code Sections
8500 and following) (the “1915 Act”) upon the security of the unpaid special assessments; and
WHEREAS, SCIP will also allow the financing of certain public capital improvements
to be constructed by or on behalf of property owners for acquisition by the City or another public
agency (the “Improvements”); and
WHEREAS, the City desires to allow the owners of property being developed within its
jurisdiction (“Participating Developers”) to participate in SCIP and to allow the Authority to
conduct assessment proceedings under the 1913 Act and to issue Local Obligations under the
1915 Act to finance Fees levied on such properties and improvements, provided that such
Participating Developers voluntarily agree to participate and consent to the levy of such
assessments; and
WHEREAS, in each year in which eligible property owners within the jurisdiction of the
City elect to be Participating Developers, the Authority will conduct assessment proceedings
under the 1913 Act and issue Local Obligations under the 1915 Act to finance fees payable by
such property owners and improvements and, at the conclusion of such proceedings, will levy
special assessments on such property within the territory of the City;
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R ______
WHEREAS, there has been presented to this meeting a proposed form of Resolution of
Intention to be adopted by the Authority in connection with such assessment proceedings (the
“ROI”), a copy of which is attached hereto as Exhibit A, and the territory within which
assessments may be levied for SCIP (provided that each Participating Developer consents to
such assessment) shall be coterminous with the City’s official boundaries of record at the time of
adoption of each such ROI (the “Proposed Boundaries”), and reference is hereby made to such
boundaries for the plat or map required to be included in this Resolution pursuant to Section
10104 of the Streets and Highways Code; and
WHEREAS, there has also been presented to this meeting a proposed form of
Acquisition Agreement (the “Acquisition Agreement”), a copy of which is attached hereto as
Exhibit B, to be approved as to form for use with respect to any Improvements to be constructed
and installed by a Participating Developer and for which the Participating Developer requests
acquisition financing as part of its SCIP application; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings; the levy or collection of assessments or any required remedial action in the case of
delinquencies in such assessment payments; or the issuance, sale or administration of the Local
Obligations or any other bonds issued in connection with SCIP; and
WHEREAS, pursuant to Government Code Section 6586.5, notice was published at least
five days prior to the adoption of this resolution at a public hearing, which was duly conducted
by this Council concerning the significant public benefits of SCIP and the financing of the
improvements and the public capital improvements to be paid for with the proceeds of the Fees;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
Section 1. The City hereby consents to the conduct of special assessment proceedings by
the Authority in connection with SCIP pursuant to the 1913 Act and the issuance of Local
Obligations under the 1915 Act on any property within the Proposed Boundaries; provided, that:
(1) Such proceedings are conducted pursuant to one or more Resolutions of Intention in
substantially the form of the ROI; and
(2) The Participating Developers, who shall be the legal owners of such property, execute
a written consent to the levy of assessment in connection with SCIP by the Authority and execute
an assessment ballot in favor of such assessment in compliance with the requirements of Section
4 of Article XIIID of the State Constitution.
Section 2. The City hereby finds and declares that the issuance of bonds by the
Authority in connection with SCIP will provide significant public benefits, including without
limitation, savings in effective interest rate, bond preparation, bond underwriting and bond
issuance costs and the more efficient delivery of local agency services to residential and
commercial development within the City.
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Section 3. The Authority has prepared and will update from time to time the “SCIP
Manual of Procedures” (the “Manual”), and the City will handle fee revenues and funds for
improvements for properties participating in SCIP in accordance with the procedures set forth in
the Manual.
Section 4. The form of Acquisition Agreement presented to this meeting is hereby
approved, and the Mayor is authorized to execute and the City Clerk is authorized to attest the
execution of a completed Acquisition Agreement in substantially said form and pertaining to the
Improvements being financed on behalf of the applicable Participating Developer.
Section 5. The appropriate officials and staff of the City are hereby authorized and
directed to make SCIP applications available to all property owners who are subject to Fees for
new development within the City and/or who are conditioned to install Improvements and to
inform such owners of their option to participate in SCIP; provided, that the Authority shall be
responsible for providing such applications and related materials at its own expense. The staff
persons listed on the attached Exhibit C, together with any other staff persons chosen by the City
Manager from time to time, are hereby designated as the contact persons for the Authority in
connection with the SCIP program.
Section 6. The appropriate officials and staff of the City are hereby authorized and
directed to execute and deliver such closing certificates, requisitions, agreements and related
documents, including but not limited to such documents as may be required by Bond Counsel in
connection with the participation in SCIP of any districts, authorities or other third-party entities
entitled to own Improvements and/or to levy and collect fees on new development to pay for
public capital improvements within the jurisdiction of the City, as are reasonably required by the
Authority in accordance with the Manual to implement SCIP for Participating Developers and to
evidence compliance with the requirements of federal and state law in connection with the
issuance by the Authority of the Local Obligations and any other bonds for SCIP. To that end,
and pursuant to Treasury Regulations Section 1.150-2, the staff persons listed on Exhibit C, or
other staff person acting in the same capacity for the City with respect to SCIP, are hereby
authorized and designated to declare the official intent of the City with respect to the public
capital improvements to be paid or reimbursed through participation in SCIP.
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R ______
Section 7. This Resolution shall take effect immediately upon its adoption. The City
Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the
Secretary of the Authority.
Upon motion of _______________________, seconded by _______________________, and on
the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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EXHIBIT A TO THE RESOLUTION
FORM OF RESOLUTION OF INTENTION
TO BE ADOPTED BY CSCDA
RESOLUTION NO. __SCIP-
RESOLUTION OF INTENTION OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO FINANCE CAPITAL
IMPROVEMENTS AND/OR THE PAYMENT OF DEVELOPMENT IMPACT
FEES FOR PUBLIC CAPITAL IMPROVEMENTS IN THE PROPOSED
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM ASSESSMENT
DISTRICT NO. ___ (CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS
OBISPO, CALIFORNIA), APPROVING A PROPOSED BOUNDARY MAP,
MAKING CERTAIN DECLARATIONS, FINDINGS AND DETERMINATIONS
CONCERNING RELATED MATTERS, AND AUTHORIZING RELATED
ACTIONS IN CONNECTION THEREWITH
WHEREAS, under the authority of the Municipal Improvement Act of 1913 (the “1913 Act”),
being Division 12 (commencing with Sections 10000 and following) of the California Streets and
Highways Code (the “Code”), the Commission (the “Commission”) of the California Statewide
Communities Development Authority (the “Authority”) intends to finance, through its Statewide
Community Infrastructure Program, the payment of certain development impact fees for public
improvements (the “Improvement Fees”) and/or to finance certain public capital improvements to be
constructed by or on behalf of the property owner(s) and to be acquired by the City of San Luis Obispo or
another local agency (the “Improvements”) as described in Exhibit A attached hereto and by this
reference incorporated herein, all of which are of benefit to the property within the proposed Statewide
Community Infrastructure Program Assessment District No. ___ (City of San Luis Obispo, County of San
Luis Obispo, California) (the “Assessment District”);
WHEREAS, the Commission finds that the land specially benefited by the Improvements and/or
the Improvement Fees is shown within the boundaries of the map entitled “Proposed Boundaries of
California Statewide Communities Development Authority Statewide Community Infrastructure Program
Assessment District No. ___ (City of San Luis Obispo, County of San Luis Obispo,) State of California,”
a copy of which map is on file with the Secretary and presented to this Commission meeting, and
determines that the land within the exterior boundaries shown on the map shall be designated “Statewide
Community Infrastructure Program Assessment District No. ___ (City of San Luis Obispo, County of San
Luis Obispo,) State of California”;
WHEREAS, the City of San Luis Obispo is a member of the Authority and has approved the
adoption on its behalf of this Resolution of Intention and has consented to the levy of the assessments in
the Assessment District;
NOW, THEREFORE, BE IT RESOLVED that the Commission of the California Statewide
Communities Development Authority hereby finds, determines and resolves as follows:
Section 1. The above recitals are true and correct.
Section 2. Pursuant to Section 2961 of the Special Assessment Investigation, Limitation and
Majority Protest Act of 1931 (the “1931 Act”), being Division 4 (commencing with Section 2800) of the
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Code, the Commission hereby declares its intent to comply with the requirements of the 1931 Act by
complying with Part 7.5 thereof.
Section 3. The Commission has designated a registered, professional engineer as Engineer
of Work for this project, and hereby directs said firm to prepare the report containing the matters required
by Sections 2961(b) and 10204 of the Code, as supplemented by Section 4 of Article XIIID of the
California Constitution.
Section 4. The proposed boundary map of the Assessment District is hereby approved and
adopted. Pursuant to Section 3111 of the Code, the Secretary of the Authority is directed to file a copy of
the map in the office of the County Recorder of the County of San Luis Obispo within fifteen (15) days of
the adoption of this resolution.
Section 5. The Commission determines that the cost of financing the Improvements and/or
the payment of the Improvement Fees shall be specially assessed against the lots, pieces or parcels of land
within the Assessment District benefiting from the financing of the Improvements and/or the payment of
the Improvement Fees. The Commission intends to levy a special assessment upon such lots, pieces or
parcels in accordance with the special benefit to be received by each such lot, piece or parcel of land,
respectively, from the financing of the Improvements and/or the payment of the Improvement Fees.
Section 6. The Commission intends, pursuant to subparagraph (f) of Section 10204 of the
Code, to provide for an annual assessment upon each of the parcels of land in the proposed Assessment
District to pay various costs and expenses incurred from time to time by the Authority and not otherwise
reimbursed to the Authority which result from the administration and collection of assessment
installments or from the administration or registration of the improvement bonds and the various funds
and accounts pertaining thereto.
Section 7. Bonds representing unpaid assessments, and bearing interest at a rate not to
exceed twelve percent (12%) per annum, will be issued in the manner provided by the Improvement Bond
Act of 1915 (Division 10 of the Code), and the last installment of the bonds shall mature not to exceed
twenty-nine (29) years from the second day of September next succeeding twelve (12) months from their
date.
Section 8. The procedure for the collection of assessments and advance retirement of bonds
under the Improvement Bond Act of 1915 shall be as provided in Part 11.1 ther eof.
Section 9. Neither the Authority nor any member agency thereof will obligate itself to
advance available funds from its or their own funds or otherwise to cure any deficiency which may occur
in the bond redemption fund. A determination not to obligate itself shall not prevent the Authority or any
such member agency from, in its sole discretion, so advancing funds.
Section 10. The amount of any surplus remaining in the improvement fund after acquisition
of the Improvements and/or payment of Improvement Fees and all other claims shall be distributed in
accordance with the provisions of Section 10427.1 of the Code.
Section 11. To the extent any Improvement Fees are paid to the Authority in cash with
respect to property within the proposed Assessment District prior to the date of issuance of the bonds, the
amounts so paid shall be reimbursed from the proceeds of the bonds to the property owner or developer
that made the payment.
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PASSED AND ADOPTED by the California Statewide Communities Development Authority
this ___ day of ______, 20__.
I, the undersigned, an Authorized Signatory of the California Statewide Communities
Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the
Commission of the Authority at a duly called meeting of the Commission of the Au thority held in
accordance with law on _____ __ , 20__.
By
Authorized Signatory
California Statewide Communities
Development Authority
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EXHIBIT A TO THE RESOLUTION OF INTENTION
DESCRIPTION OF WORK
The payment of development impact fees levied within the Assessment District and/or public capital
improvements to be acquired and owned by the City of San Luis Obispo or another local agency upon or
for the benefit of parcels within the Assessment District, for the project known as [Project Name], which
are authorized to be financed pursuant to the Municipal Improvement Act of 1913 and as to which the
owners of the applicable parcels within the Assessment District have applied for participation in SCIP, as
more particularly described below.
PAYMENT OF IMPACT FEES
CAPITAL IMPROVEMENTS*
*Capital improvements includes funding for incidental costs associated with the capital improvements,
including but not limited to, contingency, design, engineering, and construction management
[End of Form of Resolution of Intention]
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EXHIBIT B TO THE RESOLUTION
FORM OF ACQUISITION AGREEMENT
_____________________
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ACQUISITION AGREEMENT
BY AND BETWEEN
CITY OF SAN LUIS OBISPO
AND
[DEVELOPER]
Dated as of _______, 20__
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ACQUISITION AGREEMENT
Recitals
A. The parties to this Acquisition Agreement (the “Agreement”) are the CITY OF
SAN LUIS OBISPO, (the “Local Agency”), and [DEVELOPER], a [here indicate type of legal
entity] (the “Developer”).
B. The effective date of this Agreement is ________, 20__.
C. The Developer has applied for financing of certain public capital improvements
(the “Acquisition Improvements”) and capital facilities fees though the Statewide Community
Infrastructure Program (“SCIP”) administered by the California Statewide Communities
Development Authority (the “Authority”) and such application has been approved by the Local
Agency.
D. The administration, payment and reimbursement of the capital facilities fees is
agreed to be governed by the provisions of the SCIP Manual of Procedures as it may be amended
from time to time. The administration, payment and reimbursement of the Acquisition
Improvements shall be as provided herein.
E. Under SCIP, the Authority intends to issue bonds to fund, among other things, all
or a portion of the costs of the Acquisition Improvements, and the portion of the proceeds of
such bonds allocable to the cost of the Acquisition Improvements to be constructed and installed
by the Developer, together with interest earned thereon prior to such acquisition, is referred to
herein as the “Available Amount”.
F. SCIP will provide financing for the acquisition by the Local Agency of the
Acquisition Improvements and the payment of the Acquisition Price (as defined herein) of the
Acquisition Improvements from the Available Amount. Attached hereto as Exhibit A are
descriptions of the Acquisition Improvements, which descriptions are subject to modification by
written amendment of this Agreement, subject to the approval of the Authority.
G. The parties anticipate that, upon completion of the Acquisition Improvements and
subject to the terms and conditions of this Agreement, the Local Agency will acquire such
completed Acquisition Improvements with the Available Amount.
H. Any and all monetary obligations of the Local Agency arising out of this
Agreement are the special and limited obligations of the Local Agency payable only from the
Available Amount, and no other funds whatsoever of the Local Agency shall be obligated
therefor.
I. In consideration of Recitals A through H, inclusive, and the mutual covenants,
undertakings and obligations set forth below, the Local Agency and the Developer agree as
stated below.
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Agreement
ARTICLE I
DEFINITIONS; ASSESSMENT DISTRICT FORMATION AND
FINANCING PLAN
Section 1.01. Definitions. As used herein, the following capitalized terms shall
have the meanings ascribed to them below:
“Acceptable Title” means free and clear of all monetary liens, encumbrances,
assessments, whether any such item is recorded or unrecorded, and taxes, except those items
which are reasonably determined by the Local Agency Engineer in his sole discretion not to
interfere with the intended use and therefore are not required to be cleared from the title.
“Acquisition Improvements” shall have the meaning assigned to such term in Recital C
and are described in Exhibit A.
“Acquisition Price” means the amount paid to the Developer upon acquisition of all of
the Acquisition Improvements as provided in Section 2.03.
“Actual Cost” means the cost of construction of all of the Acquisition Improvements, as
documented by the Developer to the satisfaction of the Local Agency, as certified by the Local
Agency Engineer in an Actual Cost Certificate.
“Actual Cost Certificate” shall mean a certificate prepared by the Developer detailing the
Actual Cost of all of the Acquisition Improvement to be acquired hereunder, as revised by the
Local Agency Engineer pursuant to Section 2.03.
“Agreement” means this Acquisition Agreement, dated as of ______, 20__.
“Assessment District” means the assessment district established by the Authority
pursuant to SCIP which includes the Developer's property for which the Acquisition
Improvements are being funded.
“Authority” means the California Statewide Communities Development Authority.
“Available Amount” means the amount of funds deposited in the Developer Acquisition
Account by the Authority pursuant to SCIP, together with any interest earnings thereon.
“Code” means the Streets and Highways Code of the State of California.
“Developer” means [Developer], a [here indicate type of legal entity].
“[Developer] Acquisition Account” means the account by that name established by the
Authority pursuant to SCIP for the purpose of paying the Acquisition Price of the Acquisition
Improvements.
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“Local Agency” means the City of San Luis Obispo.
“Local Agency Engineer” means the Director of Public Works of the Local Agency (the
“Director”) or the designee of the Director, who will be responsible for administering the
acquisition of the Acquisition Improvements hereunder.
“Project” means the land development program of the Developer pertaining to the
Developer’s property in the Assessment District, including the design and construction of the
Acquisition Improvements and the other public and private improvements to be constructed by
the Developer within or adjacent to the Assessment District.
“SCIP” means the Statewide Community Infrastructure Program of the Authority.
“SCIP Requisition” means a requisition for payment of funds from the [Developer]
Acquisition Account in substantially the form attached hereto as Exhibit B.
“SCIP Trust Agreement” means the Trust Agreement entered into by the Authority and
the SCIP Trustee in connection with the financing for the Acquisition Improvements.
“SCIP Trustee” means Wilmington Trust, National Association, as trustee under the
SCIP Trust Agreement.
“Title Documents” means, for each Acquisition Improvement acquired hereunder, a
grant deed or similar instrument necessary to transfer title to any real property or interests therein
(including easements) necessary or convenient to the operation, maintenance, rehabilitation and
improvement by the Local Agency of that Acquisition Improvement (including, if necessary,
easements for ingress and egress) and a Bill of Sale or similar instrument evidencing transfer of
title to that Acquisition Improvement (other than said real property interests) to the Local
Agency, where applicable.
Section 1.02. Participation in SCIP. Developer has applied for financing through
SCIP of the Acquisition Improvements, and such application has been approved by the Local
Agency. Developer and Local Agency agree that until and unless such financing is completed by
the Authority and the Available Amount is deposited in the Developer Acquisition Account,
neither the Developer nor the Local Agency shall have any obligations under this agreement.
Developer agrees to cooperate with the Local Agency and the Authority in the completion of
SCIP financing for the Acquisition Improvements.
Section 1.03. Deposit and Use of Available Amount .
(a) Upon completion of the SCIP financing, the Available Amount will be
deposited by the Authority in the [Developer] Acquisition Account.
(b) The Authority will cause the SCIP Trustee to establish and maintain the
[Developer] Acquisition Account for the purpose of holding all funds for the Acquisition
Improvements. All earnings on amounts in the [Developer] Acquisition Account shall remain in
the [Developer] Acquisition Account for use as provided herein and pursuant to SCIP. The
amounts in the [Developer] Acquisition Account shall be withdrawn by the Local Agency in
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accordance with SCIP procedures upon completion of the Acquisition Improvements within 30
days (or as soon thereafter as reasonably practicable) of receipt by the Local Agency of the
certification of the Local Agency Engineer required by Section 2.03 of this Agreement, and
subject to satisfaction of all other conditions precedent to such acquisition pursuant to Section
2.04 of this Agreement, to pay the Acquisition Price of such completed Acquisition
Improvements, as specified in Article II hereof. Upon completion of all of the Acquisition
Improvements and the payment of all costs thereof, any remaining funds in the [Developer]
Acquisition Account (less any amount determined by the Local Agency as necessary to reserve
for claims against such account) (i) shall be applied to pay the costs of any additional
improvements eligible for acquisition with respect to the Project as approved by the Authority
and, to the extent not so used, thereafter (ii) shall be applied by the Authority as provided in
Section 10427.1 of the Code to pay a portion of the assessments levied on the Project property in
the Assessment District.
Section 1.04. No Local Agency Liability; Local Agency Discretion; No Effect
on Other Agreements. In no event shall any actual or alleged act by the Local Agency or any
actual or alleged omission or failure to act by the Local Agency with respect to SCIP subj ect the
Local Agency to monetary liability therefor. Further, nothing in this Agreement shall be
construed as affecting the Developer’s or the Local Agency’s duty to perform their respective
obligations under any other agreements, public improvement standards, land use regulations or
subdivision requirements related to the Project, which obligations are and shall remain
independent of the Developer’s and the Local Agency’s rights and obligations under this
Agreement.
ARTICLE II
DESIGN, CONSTRUCTION AND ACQUISITION OF ACQUISITION IMPROVEMENTS
Section 2.01. Letting and Administering Design Contracts. The parties presently
anticipate that the Developer has awarded and administered or will award and administer
engineering design contracts for the Acquisition Improvements to be acquired from Developer.
All eligible expenditures of the Developer for design engineering and related costs in connection
with the Acquisition Improvements (whether as an advance to the Local Agency or directly to
the design consultant) shall be reimbursed at the time of acquisition of such Acquisition
Improvements. The Developer shall be entitled to reimbursement for any design costs of the
Acquisition Improvements only out of the Acquisition Price as provided in Section 2.03 and
shall not be entitled to any payment for design costs independent of or prior to the acquisition of
Acquisition Improvements.
Section 2.02. Letting and Administration of Construction Contracts. State law
requires that all Acquisition Improvements shall be constructed as if they were constructed under
the direction and supervision of the Local Agency. In order to assure compliance with those
provisions, except for any contracts entered into prior to the date hereof, Developer agrees to
comply with the guidelines of the Local Agency for letting and administering said contracts. The
Developer agrees that all such contracts shall call for payment of prevailing wages as required by
the Labor Code of the State of California.
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Section 2.03. Sale of Acquisition Improvements. The Developer agrees to sell to
the Local Agency the Acquisition Improvements to be constructed by Developer (including any
rights-of-way or other easements necessary for the operation and maintenance of the Acquisition
Improvements, to the extent not already publicly owned) when such Acquisition Improvements
are completed to the satisfaction of the Local Agency for an amount not to exceed the lesser of
(i) the Available Amount or (ii) the Actual Cost of the Acquisition Improvements. Exhibit A,
attached hereto and incorporated herein, contains a list of each Acquisition Improvement. At the
time of completion of each Acquisition Improvement, the Developer shall deliver to the Local
Agency Engineer a written request for acquisition, accompanied by an Actual Cost Certificate
and executed Title Documents for the transfer of the Acquisition Improvement, where necessary.
In the event that the Local Agency Engineer finds that the supporting paperwork submitted by
the Developer fails to demonstrate the required relationship between the subject Actual Cost and
the related Acquisition Improvement, the Local Agency Engineer shall advise the Developer that
the determination of the Actual Cost (or the ineligible portion thereof) has been disallowed and
shall request further documentation from the Developer. If such further documentation is still
not adequate, the Local Agency Engineer may revise the Actual Cost Certificate to delete any
disallowed items, and such determination shall be final and conclusive.
In the event that the Actual Cost is in excess of the Available Amount, the Local Agency
shall withdraw the Available Amount from the [Developer] Acquisition Account and transfer
said amount to the Developer. In the event that the Actual Cost is less than the Available
Amount, the Local Agency shall withdraw an amount from the [Developer] Acquisition Account
equal to the Actual Cost, and shall transfer said amount to the Developer. Any amounts then
remaining in the [Developer] Acquisition Account shall be applied as provided in Section 1.03.
In no event shall the Local Agency be required to pay the Developer more than the
amount on deposit in the [Developer] Acquisition Account at the time such payment is
requested.
Section 2.04. Conditions Precedent to Payment of Acquisition Price. Payment
by the Local Agency to the Developer from the [Developer] Acquisition Account of the
Acquisition Price for an Acquisition Improvement shall be conditioned first upon the
determination of the Local Agency Engineer, pursuant to Section 2.03, that such Acquisition
Improvement is all complete and ready for acceptance by the Local Agency, and shall be further
conditioned upon prior satisfaction of the following additional conditions precedent:
(a) The Developer shall have provided the Local Agency with lien releases or
other similar documentation satisfactory to the Local Agency as evidence that the property which
is subject to the special assessment liens of the Assessment District is not subject to any
prospective mechanics lien claim respecting the Acquisition Improvements.
(b) All due and payable property taxes, and installments of special assessments
shall be current on property owned by the Developer or under option to the Developer that is
subject to the special assessment liens of the Assessment District.
(c) The Developer shall certify that it is not in default with respect to any loan
secured by any interest in the Project.
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(d) The Developer shall have provided the Local Agency with Title Documents
needed to provide the Local Agency with title to the site, right-of-way, or easement upon which
the subject Acquisition Improvements are situated. All such Title Documents shall be in a form
acceptable to the Local Agency (or applicable governmental agency) and shall convey
Acceptable Title. The Developer shall provide a policy of title insurance as of the date of
transfer in a form acceptable to the Local Agency Engineer insuring the Local Agency as to the
interests acquired in connection with the acquisition of any interest for which such a policy of
title insurance is not required by another agreement between the Local Agency and the
Developer. Each title insurance policy required hereunder shall be in the amount equal to or
greater than the Acquisition Price.
Section 2.05. SCIP Requisition. Upon a determination by the Local Agency
Engineer to pay the Acquisition Price of the Acquisition Improvements pursuant to Section 2.04,
the Local Agency Engineer shall cause a SCIP Requisition to be submitted to the Program
Administrator. The Program Administrator will review the SCIP Requisition and forward it with
instructions to the SCIP Trustee and the SCIP Trustee shall make payment directly to the
Developer of such amount pursuant to the SCIP Trust Agreement. The Local Agency and the
Developer acknowledge and agree that the SCIP Trustee shall make payment strictly in
accordance with the SCIP Requisition and shall not be required to determine whether or not the
Acquisition Improvements have been completed or what the Actual Costs may be with respect to
such Acquisition Improvements. The SCIP Trustee shall be entitled to rely on the SCIP
Requisition on its face without any further duty of investigation.
ARTICLE III
MISCELLANEOUS
Section 3.01. Indemnification and Hold Harmless. The Developer hereby
assumes the defense of, and indemnifies and saves harmless the Local Agency, the Authority,
and each of its respective officers, directors, employees and agents, from and against all actions,
damages, claims, losses or expenses of every type and description to which they may be
subjected or put, by reason of, or resulting from or alleged to have resulted from the acts or
omissions of the Developer or its agents and employees in the performance of this Agreement, or
arising out of any contract for the design, engineering and construction of the Acquisition
Improvements or arising out of any alleged misstatements of fact or alleged omission of a
material fact made by the Developer, its officers, directors, employees or agents to the
Authority's underwriter, financial advisor, appraiser, district engineer or bond counsel or
regarding the Developer, its proposed developments, its property ownership and its contractual
arrangements contained in the official statement relating to the SCIP financing (provided that the
Developer shall have been furnished a copy of such official statement and shall not have
objected thereto); and provided, further, that nothing in this Section 3.01 shall limit in any
manner the Local Agency’s rights against any of the Developer’s architects, engineers,
contractors or other consultants. Except as set forth in this Section 3.01, no provision of this
Agreement shall in any way limit the extent of the responsibility of the Developer for payment of
damages resulting from the operations of the Developer, its agents and employees. Nothing in
this Section 3.01 shall be understood or construed to mean that the Developer agrees to
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indemnify the Local Agency, the Authority or any of its respective officers, directors, employees
or agents, for any negligent or wrongful acts or omissions to act of the Local Agency, Authority
its officers, employees, agents or any consultants or contractors.
Section 3.02. Audit. The Local Agency shall have the right, during normal
business hours and upon the giving of ten days’ written notice to the Developer, to review all
books and records of the Developer pertaining to costs and expenses incurred by the Developer
(for which the Developer seeks reimbursement) in constructing the Acquisition Improvements.
Section 3.03. Cooperation. The Local Agency and the Developer agree to
cooperate with respect to the completion of the SCIP financing for the Acquisition
Improvements. The Local Agency and the Developer agree to meet in good faith to resolve any
differences on future matters which are not specifically covered by this Agreement.
Section 3.04. General Standard of Reasonableness. Any provision of this
Agreement which requires the consent, approval or acceptance of either party hereto or any of
their respective employees, officers or agents shall be deemed to require that such consent,
approval or acceptance not be unreasonably withheld or delayed, unless such provision expressly
incorporates a different standard. The foregoing provision shall not apply to provisions in the
Agreement which provide for decisions to be in the sole discretion of the party making the
decision.
Section 3.05. Third Party Beneficiaries. The Authority and its officers,
employees, agents or any consultants or contractors are expressly deemed third party
beneficiaries of this Agreement with respect to the provisions of Section 3.01. It is expressly
agreed that, except for the Authority with respect to the provisions of Section 3.01, there are no
third party beneficiaries of this Agreement, including without limitation any owners of bonds,
any of the Local Agency’s or the Developer’s contractors for the Acquisition Improvements and
any of the Local Agency’s, the Authority's or the Developer’s agents and employees.
Section 3.06. Conflict with Other Agreements. Nothing contained herein shall
be construed as releasing the Developer or the Local Agency from any condition of development
or requirement imposed by any other agreement between the Local Agency and the Developer,
and, in the event of a conflicting provision, such other agreement shall prevail unless such
conflicting provision is specifically waived or modified in writing by the Local Agency and the
Developer.
Section 3.07. Notices. All invoices for payment, reports, other communication
and notices relating to this Agreement shall be mailed to:
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If to the Local Agency:
City of San Luis Obispo
[Address to Come]
If to the Developer:
[Developer]
[Address to Come]
Either party may change its address by giving notice in writing to the other party.
Section 3.08. Severability. If any part of this Agreement is held to be illegal or
unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be
given effect to the fullest extent reasonably possible.
Section 3.09. Governing Law. This Agreement and any dispute arising
hereunder shall be governed by and interpreted in accordance with the laws of the State of
California.
Section 3.10. Waiver. Failure by a party to insist upon the strict performance of
any of the provisions of this Agreement by the other party, or the failure by a party to exercise its
rights upon the default of the other party, shall not constitute a waiver of such party’s right to
insist and demand strict compliance by the other party with the terms of this Agreement.
Section 3.11. Singular and Plural; Gender. As used herein, the singular of any
word includes the plural, and terms in the masculine gender shall include the feminine.
Section 3.12. Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original.
Section 3.13. Successors and Assigns. This Agreement is binding upon the
heirs, assigns and successors-in-interest of the parties hereto. The Developer may not assign its
rights or obligations hereunder, except to successors-in-interest to the property within the
District, without the prior written consent of the Local Agency.
Section 3.14. Remedies in General. It is acknowledged by the parties that the
Local Agency would not have entered into this Agreement if it were to be liable in damages
under or with respect to this Agreement or the application thereof, other than for the payment to
the Developer of any (i) moneys owing to the Developer hereunder, or (ii) moneys paid by the
Developer pursuant to the provisions hereof which are misappropriated or improperly obtained,
withheld or applied by the Local Agency.
In general, each of the parties hereto may pursue any remedy at law or equity available
for the breach of any provision of this Agreement, except that the Local Agency shall not be
liable in damages to the Developer, or to any assignee or transferee of the Developer other than
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for the payments to the Developer specified in the preceding paragraph. Subject to the
foregoing, the Developer covenants not to sue for or claim any damages for any alleged breach
of, or dispute which arises out of, this Agreement.
[THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year written above.
CITY OF SAN LUIS OBISPO
By ______________________________________
ATTEST: [Mayor]
City Clerk
By _________________________________
[DEVELOPER],
a [here indicate type of legal entity]
By __________________________
(Signature)
__________________________
(Print Name)
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EXHIBIT A TO THE ACQUISITION AGREEMENT
DESCRIPTION OF ACQUISITION IMPROVEMENTS AND BUDGETED AMOUNTS
ACQUISITION IMPROVEMENTS BUDGETED AMOUNTS
1. $
2.
3.
4.
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EXHIBIT B TO THE ACQUISITION AGREEMENT
FORM OF SCIP REQUISITION
To: BLX Group LLC
SCIP Program Administrator
777 S. Figueroa St., Suite 3200
Los Angeles, California 90017
Attention: Vo Nguyen
Fax: 213-612-2499
Re: Statewide Community Infrastructure Program
The undersigned, a duly authorized officer of the CITY OF SAN LUIS OBISPO hereby requests
a withdrawal from the [DEVELOPER] ACQUISITION ACCOUNT, as follows:
Request Date: [Insert Date of Request]
Name of Developer: [Developer]
Withdrawal Amount: [Insert Acquisition Price]
Acquisition Improvements: [Insert Description of Acquisition Improvement(s) from Ex. A]
Payment Instructions: [Insert Wire Instructions or Payment Address for Developer]
The undersigned hereby certifies as follows:
1. The Withdrawal is being made in accordance with a permitted use of such monies
pursuant to the Acquisition Agreement, and the Withdrawal is not being made for the purpose of
reinvestment.
2. None of the items for which payment is requested have been reimbursed previously from
other sources of funds.
3. If the Withdrawal Amount is greater than the funds held in the [Developer] Acquisition
Account, the SCIP Program Administrator is authorized to amend the amount requested to be
equal to the amount of such funds.
4. To the extent the Withdrawal is being made prior to the date bonds have been issued on
behalf of SCIP, this withdrawal form serves as the declaration of official intent of the CITY OF
SAN LUIS OBISPO, pursuant to Treasury Regulations 1.150-2, to reimburse with respect
expenditures made from the Developer Acquisition Account listed above in the amount listed
above.
CITY OF SAN LUIS OBISPO
By :
Title:
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EXHIBIT C TO THE RESOLUTION
CITY OF SAN LUIS OBISPO CONTACTS FOR SCIP PROGRAM
Primary Contact
Name: Daryl Grigsby
Title: Public Works Director
Mailing Address: 919 Palm Street, San Luis Obispo, CA 93401-2710
Delivery Address (if different):
E-mail: dgrigsby@slocity.org
Telephone: (805) 781-7207
Fax:
Secondary Contact
Name: Matt Horn
Title: City Engineer
Mailing Address: 919 Palm Street, San Luis Obispo, CA 93401
Delivery Address (if different):
E-mail: mhorn@slocity.org
Telephone: (805) 781-7191
Fax:
[Add additional contacts as needed]
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CERTIFICATION OF RESOLUTION
I, the undersigned, the duly appointed and qualified City Clerk of the City of San Luis
Obispo, do hereby certify that the foregoing Resolution No. ___________ was duly adopted at a
regular meeting of the City Council of the City of San Luis Obispo duly and regularly held at the
regular meeting place thereof on the _______ day of __________, 20__, of which meeting all of
the members of said City Council had due notice and at which a majority thereof were present.
An agenda of said meeting was posted at least 72 hours before said meeting at
_____________________, a location freely accessible to members of the public, and a brief
description of said resolution appeared on said agenda.
I have carefully compared the foregoing with the original minutes of said meeting on file
and of record in my office, and the foregoing is a full, true and correct copy of the original
resolution adopted at said meeting and entered in said minutes.
Said resolution has not been amended, modified or rescinded since the date of its
adoption and the same is now in full force and effect.
Dated: _______________, 20__
_________________________________
City Clerk
City of San Luis Obispo
By: ______________________________
[Seal]
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CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
“SCIP”
MANUAL OF PROCEDURES
Version 2.3.1
[Last Revised February 2018]
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STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
CONTACT INFORMATION
California Statewide Communities Development Authority
James Hamill
1700 North Broadway, Suite 405
Walnut Creek, CA 94596
(925) 476-5644
(925) 391-3590 fax
jhamill@cscda.org
Jon Penkower
1700 North Broadway, Suite 405
Walnut Creek, CA 94596
(925) 476-5887
(925) 391-3590 fax
jpenkower@cscda.org
Program Administrator
Vo Nguyen
BLX Group, LLC
777 South Figueroa Street, Suite 800
Los Angeles, California 90017
(213) 612-2152
(213) 612-2499 (fax)
vnguyen@blxgroup.com
Trustee
Jeanie Mar
Wilmington Trust, N.A.
650 Town Center Drive, Suite 600
Costa Mesa, CA 92626
(714) 384-4153
jmar@wilmingtontrust.com
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Assessment Administrator
David Taussig
David Taussig and Associates, Inc
5000 Birch Street, Suite 6000
Newport Beach, CA 92660
(949) 955-1500
(949) 955-1590 (fax)
dtadavid@taussig.com
Nathan Perez
David Taussig and Associates, Inc.
2250 Hyde Street, 5th Floor
San Francisco, CA 94109
(415) 962-1480
nperez@taussig.com
Underwriter
Robert L. Williams, Jr.
RBC Capital Markets
345 California Street, Suite 2800
San Francisco, California 94111
(415) 445-8674
(415) 445-8679 (fax)
bob.williams@rbccm.com
SCIP Legal Counsel
John H. Knox
Orrick, Herrington & Sutcliffe LLP
405 Howard Street
San Francisco, California 94105
(415) 773-5626
(415) 773-5759 (fax)
jknox@orrick.com
Patricia L. Eichar
Orrick, Herrington & Sutcliffe LLP
1120 NW Couch Street, Suite 200
Portland, OR 97203
(503) 943-4860
(503) 943-4801 (fax)
peichar@orrick.com
Erin Pham
Orrick, Herrington & Sutcliffe LLP
405 Howard Street
San Francisco, California 94105
(415) 773-5841
(415) 773-5759 (fax)
epham@orrick.com
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Executive Summary
Introduction
Capitalized terms used in this Manual have the meanings given under the tab, “Glossary
of Terms.”
The Statewide Community Infrastructure Program (“SCIP”) is a program of the
California Statewide Communities Development Authority (the “Authority”). The
Authority is a joint powers authority sponsored by the League of California Cities (the
“League of Cities”) and the California State Association of Counties (“CSAC”).
Membership in the Authority is open to every California city, county and local agency,
and most are already members. If your city, county or local agency is not yet a member,
the necessary membership materials can be obtained by contacting the Authority (see
“Contact Information” preceding this Executive Summary).
SCIP financing is available for development projects (“Projects”) situated within cities or
counties which have elected to become SCIP participants (each, a “Local Agency”).
Eligibility to become a Local Agency requires only (a) membership in the Authority, and
(b) adoption of a resolution making the election (the “SCIP Resolution”).
Participation in SCIP entails the submission of an application (an “Application”) by the
property owner (the “Applicant”) of a Project for which development entitlements either
have been obtained or are being obtained from a Local Agency. For Projects determined
to be qualified, SCIP provides non-recourse financing of either (a) eligible development
impact fees payable to the Local Agency (the “Fees”) or (b) eligible public capital
improvements (the “Improvements”) or both. Under certain circumstances, to be
determined on a case by case basis, development impact fees payable to local agencies
other than the Local Agency can be financed.
Applicants benefit from SCIP because it allows them to obtain low-cost, long-term
financing of Fees and Improvements, which can otherwise entail substantial cash outlays.
The Local Agencies benefit from SCIP because it encourages developers to pay Fees
sooner and in larger blocks than they otherwise would. The availability of low-cost,
long-term financing also softens the burden of rising Fee amounts and Improvement
costs, benefiting both the Applicants and the Local Agencies.
General Structure of SCIP
In general terms, this is how SCIP works. Upon receipt of a completed Application,
including the Landowner Information Form (with attachments), the SCIP team reviews it
to determine (a) eligibility of the Fees and Improvements for which the Applicant seeks
financing and (b) creditworthiness of the Applicant and the Project. Once approved by
the SCIP team, the Application is countersigned by the Local Agency. Approved
Applications are aggregated for inclusion in the next round of financing. Periodically, as
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warranted by the accumulation of approved Applications, the Authority issues tax-
exempt revenue bonds (the “Bonds”). The proceeds from the Bonds are used to finance
Fees and/or Improvements for qualifying Projects located throughout the state. For
projects involving a sufficient amount of financing (generally $5 million or more) a
special series of bonds may be issued to fund the project separately if the timing of
issuance of a pooled financing does not suit the project, subject to approval of the
Authority.
Revenues to pay debt service on the Bonds are derived by the Authority in one of two
ways – namely (1) through the levy of special assessments on the parcels which comprise
the participating Projects by establishing one or more assessment districts (each, an
“Assessment District”) pursuant to the Municipal Improvement Act of 1913 (the
“Assessment Act”) or (2) through the levy of special taxes on the Project parcels by
establishing a community facilities district (a “CFD”) pursuant to the Mello-Roos
Community Facilities Act of 1982 (the “CFD Act”). Absent circumstances which
warrant a CFD, the Assessment District format has been and is expected to continue to be
the customary format for SCIP financing.
This Manual is generally devoted to the Assessment District format, though many of the
topics covered apply to the CFD format as well. Considerations which are specific to the
CFD format are not covered and will need to be discussed among the participants for any
given proposed use of that format.
Assessment District Format
Under the Assessment District format, the Authority will levy assessments on the Project
parcels in each Assessment District, with a separate Assessment District for each county
in which Projects are situated. The assessments will be payable in annual installments
(“Assessment Installments”) billed and collected on the applicable county property tax
roll, and the Assessment Installments will be calculated to be sufficient to pay annual
debt service on the Bonds, together with certain administrative costs of SCIP.
The assessment payment obligation is non-recourse to the property owner and follows the
parcel upon change of ownership. As with a conventional assessment district, the
property owner retains the right to pay off the assessment at any time and thereby
discharge the lien which secures payment of the Assessment Installments.
A major advantage of SCIP for Local Agencies is that the Authority handles all of the
proceedings for the formation of the Assessment Districts, levy of the assessments,
issuance of the Bonds and administration of the Assessment Installment collection and
enforcement. Furthermore, the proceeds of sale of the Bonds are administered by a
trustee bank (the “Trustee”) until requisitioned by the Local Agency to pay Fees or to
acquire completed Improvements, as the case may be.
The duties of staff of Local Agencies are correspondingly reduced and relate primarily to
making developers aware of the availability of the SCIP program, making application
forms available to interested developers, confirming the status of Projects for which
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Applications have been submitted, confirming the Fee and Improvement obligations for
qualified Projects, determining when Improvements are completed and therefore ready
for acquisition, and submitting requests to the Trustee for disbursement of SCIP funds to
pay Fees and to acquire completed Improvements for Projects which have been funded.
In addition, when Improvements are financed, the Local Agency will be required to enter
into an “Acquisition Agreement” with the Applicant to provide the terms and conditions
governing the acquisition of completed Improvements.
When an Application seeks financing of impact fees payable to local agencies other than
the Local Agency, staff of the Local Agency, together with the Applicant, will usually
need to serve as liaison to the other local agency to establish eligibility of such impact
fees for SCIP financing and to establish procedures for monitoring investment earnings
on the Fees until expended for purposes authorized by the applicable Fee Statute.
CFD Format
For larger-scale Projects with planned phasing of the Project and the related
Improvements, the CFD format may be more suitable, given the added flexibility of the
special tax calculated annually to reflect the development status of each taxable parcel, as
opposed to the more rigid fixed lien assessment of the Assessment District format, and
the related flexibility of phasing the financing through multiple series of bonds to match
the phases of Project development and Improvements. Any determination to utilize the
CFD format will be made on a case by case basis, in consultation among the SCIP team,
the Local Agency and the Applicant. Projects financed with the CFD format are not
pooled with projects financed with the Assessment format.
Financing Eligible Impact Fees
To be eligible for SCIP financing, Fees must meet three conditions – namely, (1) they
must be payable as conditions of development approval for the Project or otherwise
provide special benefit to the Project, (2) they must not have been paid to the fee
recipient more than 60 days prior to submission of the completed Application and
issuance of a Declaration of Official Intent to Reimburse together therewith, and (3)
proceeds of the fees must be expended for public improvements which themselves would
be eligible for SCIP financing, though the public improvements need not be related to or
required for the Project.
Within SCIP, there are two programs for funding eligible Fees, and either or both may be
applicable for a given Project. The two programs are (1) the Fee Reimbursement
Program and (2) the Fee Prefunding Program.
Under the Fee Reimbursement Program, payment of the Fees by the Applicant precedes
the issuance of the Bonds, usually in connection with obtaining a building permit;
provided that, as indicated in the foregoing paragraph, the Fees must not be paid more
than 60 days prior to issuance of a Declaration of Official Intent to Reimburse. As soon
as the fees are paid to the Local Agency, the Local Agency pays those moneys to SCIP
for deposit in the Local Agency Account. That money is immediately available for
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requisition by the Local Agency to make authorized fee expenditures. But by holding
and investing the money until it is spent, the Authority is able to monitor the investment
earnings (which accrue to the Local Agency) for federal tax law arbitrage purposes.
SCIP encourages the Local Agency to spend those amounts as quickly as possible, and
before any other fee revenues of the Local Agency. Once the proceeds of sale of the
Bonds are available, the Applicant applies for reimbursement of the amount of eligible
Fees which have been paid. If the fees are paid by the property owner and bonds are
never issued, or for any reason reimbursement is not made, the fees are returned to the
Local Agency by SCIP. In this way, the Local Agency is never at risk for the receipt of
the Fees.
Under the Fee Prefunding Program, the Fees are funded from bond proceeds prior to the
Applicant having to pay them. For arbitrage rebate purposes, SCIP will invest and hold
the bond proceeds representing the fees. Again, those moneys are immediately available
for requisition by the Local Agency to make authorized fee expenditures. Thus the full
amount of Fees funded is immediately available to the Local Agency, irrespective of
whether any portion of such Fees has yet become payable with respect to the Project.
The advantage to the Applicant is that it never has to pay out of pocket any portion of the
Fees, and the advantage to the Local Agency is that the full amount of Fees funded is
immediately available to spend on qualified public improvements without waiting for any
portion of the prefunded Fees to become due from the Applicant.
Financing Eligible Improvements
To be eligible for SCIP financing, Improvements must meet three conditions – namely,
(1) they must be required as conditions of development approval for the Project or
otherwise provide special benefit to the Project, (2) they must not have been accepted by
and the ownership of them already transferred to the Local Agency or other local agency
prior to submission of the completed Application and (3) they must be the kinds of public
improvements authorized to be financed under the Assessment Act. In practice, most of
the public improvements which are required as conditions of Project approvals are
eligible under the Assessment Act (e.g., roads, street lights, landscaping, storm drains,
water and sewer facilities, and parks).
As mentioned above, the Authority will require that an Acquisition Agreement be entered
into between the Local Agency and the Applicant to provide the terms and conditions
governing the acquisition of completed Improvements. The Acquisition Agreement is
drafted by the SCIP team, using a form of agreement approved by the Local Agency as
part of its SCIP Resolution, as modified to suit the particular circumstances and local
Agency requirements.
Conclusion
The information and materials which follow in this Manual are intended to assist
interested persons in further understanding SCIP and how it might be utilized to finance
Fees and Improvements associated with a given Project. As indicated above in this
Executive Summary, the focus in this Manual is on the Assessment District format.
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Upon request of an Applicant who may have a preference for the CFD format, the SCIP
team will review the Applicant’s Project and determine, in consultation with the
Applicant and the Applicant’s consultants, whether the CFD format will be suitable.
Interested parties are invited to contact one or more of the persons listed in “Contact
Information” preceding this Executive Summary with questions or requests for
clarification.
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Table of Contents
Article Caption Page
I Local Agency Participation in SCIP ................................................................................. 1-1
II General Eligibility Requirements ..................................................................................... 2-1
III Application Process & Review ......................................................................................... 3-1
IV Assessment Proceedings ................................................................................................ 4-1
V Bonds .............................................................................................................................. 5-1
VI Funds Management & Administration ............................................................................. 6-1
VII Collection of Assessments .............................................................................................. 7-1
VIII Property Owner Information ............................................................................................ 8-1
IX Miscellaneous .................................................................................................................. 9-1
Glossary of Terms
Appendices A through V, Inclusive
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I Local Agency Participation in SCIP
1.01 Eligibility
Any California city, county or city and county (a “Local Agency”) may participate in SCIP
if it meets the following requirements:
(a) The Local Agency must be or must become a member in good standing of
the Authority prior to or concurrently with joining SCIP.
(b) The Local Agency must have in place a development fee program pursuant
to a Fee Statute (for fee financing) and/or desire to allow the financing of
Improvements for eligible Projects.
(c) Upon joining SCIP and upon submitting any Application, the Local
Agency must be a member in good standing of the League of California
Cities or the California State Association of Counties, as appropriate.
1.02 SCIP Resolution
To participate in SCIP, the Local Agency must adopt a SCIP Resolution in substantially
the form attached in Appendix G and must send a certified copy of such resolution to the
Program Administrator. The Resolution must remain in full force and effect so long as the
Local Agency wishes to participate in SCIP. A sample staff report and form of Notice of
Hearing are also included in Appendix G.
1.03 Withdrawal from SCIP
Any Local Agency may elect to withdraw from SCIP at any time by repealing the SCIP
Resolution; provided, that such repeal shall not be effective as to any completed
Application duly filed with the Program Administrator and not yet funded, without the
consent of the Applicant. Upon withdrawal from SCIP, the Local Agency shall send a
certified copy of the withdrawal resolution to the Program Administrator.
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II General Eligibility Requirements
2.01 General
The following criteria determine threshold eligibility for SCIP financing. Each Application
is also subject to review for certain underwriting criteria, as described in Article III.
2.02 Eligible Impact Fees
In order to be eligible for financing under SCIP, impact fees must meet the following
criteria:
(a) Fees must be levied under a Fee Statute.
(b) Fees must be collected by a Local Agency and levied by either the Local
Agency or another governmental entity as a condition of new development
or otherwise provide special benefit to the Project as determined by the
Assessment Engineer and be payable at time of (i) granting of
entitlements, (ii) issuance of a building permit, (iii) connection to a utility
system, or (iv) issuance of a certificate of occupancy.
(c) Fees must only be for the payment of Capital Costs of improvements to be
owned by the Local Agency or another governmental entity.
(d) Improvements to be funded with the fees must be improvements that could
be financed under the Assessment Act.
(e) With respect to fees which are to be financed under the Fee
Reimbursement Program, a completed Application must have been
submitted and a Declaration of Official Intent to Reimburse included
therewith with respect to such fees no more than 60 days after payment of
such fees by or on behalf of the Property Owner.
2.03 Eligible Improvements
In order to be eligible for financing under SCIP, public capital improvements must meet
the following criteria:
(a) The public capital improvements must be required as a condition of the
development project which is the subject of the Application or otherwise
provide special benefit to the Project as determined by the Assessment
Engineer.
(b) The public capital improvements must be authorized under the
Assessment Act.
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(c) The public capital improvements must not have been completed and
ownership transferred to the Local Agency or another governmental entity
prior to submission of a completed Application and issuance, in
connection therewith, of a Declaration of Official Intent to Reimburse
pertaining thereto.
2.04 Eligible Property Owners
In order to apply for participation in SCIP, a Property Owner must meet the following
criteria:
(a) The Property Owner must be a natural person, partnership, limited liability
company, or corporation in good standing holding, or with a contractual
right to acquire, fee simple title in the proposed Assessed Parcel(s).
(b) If property is held as community property, tenants in common, or joint
tenants, the Application must be signed by all owners or their authorized
representative(s).
(c) The Property Owner may not be any governmental or quasi-governmental
entity; provided that on a case by case basis the Authority may approve
participation by Projects that are in governmental ownership but intended
to be sold to private parties after completion of Improvements and/or
funding of fees.
(d) The Property Owner may not be the subject of any bankruptcy proceeding
2.05 Eligible Property
In order for property to be eligible for SCIP, it must meet the following criteria:
(a) The property must consist of one or more parcels each of which must be a
legal parcel in compliance with the Subdivision Map Act.
(b) The property must be within the boundaries of the Local Agency
approving the Application.
(c) The property must not be subject to any judgment lien, mechanics lien, or
tax lien (other than for taxes levied but not yet due).
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III Application Process & Review
3.01 Application
An Applicant who wishes to finance either Eligible Impact Fees or Eligible Improvements
(or both) must complete and submit a SCIP Application and a Landowner Information
Form (samples of the forms are attached as Appendix A).* The Applicant must submit the
completed Application with all attachments and Landowner Information Form (together,
the “Application”) to the Program Administrator, along with payment of the application
fee as provided in Section 3.02 below. The Program Administrator will confer with
Authority staff and if the Application is approved, the Program Administrator will
coordinate with the Local Agency to have the Local Agency review and countersign the
Application and issue the Declaration of Official Intent to Reimburse.
The Local Agency shall have no responsibility for determining the sufficiency of the
Application except to verify (i) the accuracy of the amounts and categories of the Eligible
Impact Fees and the items of Eligible Improvements and related estimated costs, as set
forth in the Application, and (ii) that the Project approvals and entitlements described in
the Application have been granted by the Local Agency.
______________________________________________________
* Applicants may also apply on-line at http://www.cacommunities.org (follow “Statewide
Community Infrastructure Program (SCIP)” hyperlink).
3.02 Application Fees
In order to apply for SCIP, Applicants must pay an application fee ($1,500 as of February
2013). The Application Fee may be adjusted from time to time by the Authority and the
current fees are available upon request. The application fee must be included with the
Application, with the check made payable to “Statewide Community Infrastructure
Program,” and is non-refundable. Application fees will be deposited by the Program
Administrator in the fund or account established for the payment of Program
Administration Costs.
3.03 Application Review and Underwriting Criteria.
Completed Applications will be reviewed by SCIP Counsel and the SCIP Underwriter in
accordance with the SCIP Timetable for the applicable Program Series. An Application
can be approved, disapproved, or approved for partial funding.
In addition to demonstrating that all criteria are met for Eligible Impact Fees, if any,
Eligible Improvements, if any, eligible Property Owners and eligible property, the
Application shall demonstrate the following:
(a) Compliance with the California Environmental Quality Act must be
established for the Project.
(b) If the Application seeks participation in the Fee Reimbursement Program,
the Applicant must be aware that at the time it applies for reimbursement
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of Fees paid, a copy of each building permit obtained upon payment of the
related Fees will be required.
If the Application seeks participation in the Fee Prefunding Program, all
discretionary entitlements must be in place, i.e. there must be an approved
vesting tentative subdivision map (if the Project involves a major
subdivision under the Subdivision Map Act), and/or conditional use permit
(if required for the Project), including improvements design plans, as
applicable. In addition, the Applicant must provide evidence that all other
discretionary permits, such as Army Corps of Engineers Section 404
permits, Fish and Game permits, and Fish and Wildlife permits and any
other required permits for the development of the Project have been
obtained.
(c) The Application must be submitted by the Property Owner (devel opers,
contractors or other persons who are not Property Owners may not submit
Applications unless they are signed by the Property Owner).
(d) Applications should be accompanied by a copy of the most recent property
tax bill, if available. The Applicant must certify that it has not been more
than 30 days delinquent in the payment of any assessment or special tax
securing a bond within the last 5 years.
(e) If there are any fixed lien assessments on any Assessed Parcel at the time
the Application is submitted or if any such assessments are levied at any
time prior to the adoption of the Resolution Confirming Assessment, either
(i) the prepayment cost of such fixed lien assessments will be added to the
Assessment and SCIP will prepay such prior assessments on behalf of the
Property Owner or (ii) the Property Owner will prepay such
assessments in cash no later than the date fixed by the Assessment
Administrator.
(f) Each Assessed Parcel must have a minimum Assessed Value or Appraised
Value of at least 3 times the total Assessment. In most cases, the SCIP
Underwriter will require an Appraisal by a certified MAI appraiser chosen
by the SCIP Underwriter and approved by the Authority, using a bulk sale
“as is” valuation, including the value of the Eligible Impact Fees and
Eligible Improvements being financed. All Appraisal costs must be paid
by the Applicant in advance to the Program Administrator and are non-
refundable.
(g) The Property Owner must not be the subject of any bankruptcy proceeding
and must not have been adjudged bankrupt within the last 5 years.
(h) The Authority, on recommendation from the SCIP Underwriter and SCIP
Counsel, reserves the right to reject any Application if it believes, in its
sole discretion, that the Assessed Parcel(s), the Project or the Property
Owner poses undue credit risks. Each Applicant must authorize the
Program Administrator to obtain a copy of a credit report from one or more
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nationally recognized credit reporting agencies, and may be required to
provide copies of banking statements and/or tax returns.
(i) If the Project will include the funding of Improvements, the Applicant may
be required to pay costs of preparation of the Engineer’s Report in advance
as determined by the Authority and any such payments shall be non-
refundable.
3.04 Approval, Partial Approval and Rejection of Applications
The Program Administrator will advise each Applicant of the status of the Application in
accordance with the SCIP Timetable for the applicable Program Series. A sample SCIP
Timetable is attached as Appendix H. Applications may either be (i) approved in full, (ii)
approved for partial funding or (iii) rejected.
(a) If an Application is approved in full, the Program Administrator will
arrange for the applied-for reimbursement to the Property Owner (to the
extent of the Impact Fee Reimbursement Program) and the applied-for
funding (to the extent of the Impact Fee Prefunding Program) of all
Eligible Impact Fees and the applied-for funding of the estimated cost and
expense of Eligible Improvements upon the issuance of the applicable
Program Series.
(b) If an Application is approved for partial funding, the Program
Administrator will send the Applicant a notice indicating the amount of
funding which has been approved and the reason(s) for partial funding.
The Applicant may either (i) accept partial funding or (ii) opt out of the
SCIP program.
(c) If an Application is rejected, the Program Administrator will send a notice
of rejection to the Applicant. Any application fees or other charges paid
in connection with the Application are non- refundable.
If an approved Application includes Eligible Improvements, SCIP Counsel will initiate the
preparation of an Acquisition Agreement substantially in the form attached to the SCIP
Resolution of the Local Agency. See Appendix G for the form of SCIP Resolution, to
which the form of Acquisition Agreement is attached as Exhibit B. SCIP Counsel will
coordinate with the Assessment Engineer to obtain the description and estimated costs
pertaining to the Eligible Improvements (Exhibit A to the Acquisition Agreement) and will
coordinate with the Applicant and the Local Agency to approve and execute the final form
of the Acquisition Agreement.
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IV Assessment Proceedings
4.01 Local Agency Requirements
Once the Local Agency has adopted a SCIP Resolution, normally it will not be necessary
for the City Council or the Board of Supervisors of the Local Agency, as the case may be,
to take any further action. Designated staff of the Local Agency will need to (a) review
the Application to perform the verification described in 3.01 above, followed by execution
of the Application, (b) coordinate review, finalization and execution on behalf of the Local
Agency of the Acquisition Agreement when Eligible Improvements are being financed, (c)
monitor progress and completion of construction of Eligible Improvements for purposes of
submitting reimbursement requisitions pursuant to the Acquisition Agreement, if any, (d)
sign a closing certificate in substantially the form of Appendix N (upon the issuance of
each applicable Program Series) and (e) administer the requisition process for disbursement
of those Eligible Impact Fees which have been financed by the applicable Program Series.
It may be necessary due to special circumstances or changes in law or in the SCIP
procedures for the Local Agency to take some further action to facilitate financing of
Eligible Impact Fees and/or Improvements. In such case, all documentation and
proceedings will be prepared by SCIP Counsel at no cost to the Local Agency and will be
forwarded to the Local Agency for review and approval. For the Impact Fee Prefunding
Program, it is possible that further information will be needed from Local Agencies beyond
the information in the Application, and by adopting its SCIP Resolution, the Local Agency
agrees to cooperate with the Program Administrator, SCIP Underwriter, SCIP Counsel and
Assessment Engineer with respect to developing such additional information.
4.02 Property Owner Requirements
Upon satisfaction of the Application requirements of Article III, each Applicant will be
sent an Assessment Ballot in substantially the form attached hereto as Appendix B and a
Consent and Waiver in substantially the form attached hereto as Appendix C, accompanied
by a copy of the preliminary Engineer’s Report showing (a) the Eligible Impact Fees,
Eligible Improvements and related program costs being financed and (b) the amount of the
Assessment being imposed on each of the Applicant’s Assessed Parcels. The Assessment
Ballot must be marked “Approve” and executed by the Property Owner and the Consent
and Waiver must be executed by the Property Owner and returned to the Program
Administrator by the deadline indicated in the transmittal letter. Failure to properly
complete or return either of these documents will result in the rejection of the Application.
4.03 Assessment Proceedings – General
All proceedings for the establishment of Assessment Districts and the issuance of Local
Obligations and Bonds will be conducted by the Authority. Assessment proceedings are
conducted by the Authority in full compliance with the requirements of Article XIIID of
the California Constitution (Proposition 2018). Upon determining which Applications
have satisfied the requirements of Article III for a Program Series, the Authority will
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commence the proceedings to establish the Assessment Districts. For each Program Series,
the Authority will create a separate Assessment District within each county containing at
least one Project being financed by such Program Series. All Projects within a given county
will be included in that Assessment District.
4.04 Engineer’s Reports
For each Assessment District, the Assessment Engineer will prepare an Engineer’s Report
containing the items required by Section 10204 of the Assessment Act. The Engineer’s
Report must be signed by a California registered professional engineer and must be filed
with the Authority.
4.05 Assessment Amount
The Assessment for each Assessed Parcel will be calculated as set forth in the Engineer’s
Report as the sum of the following amounts:
(a) Total Eligible Impact Fees financed for such Assessed Parcel; plus
(b) Benefit Share of Estimated Cost and Expense of Eligible Improvements
for the Project of which the Assessed Parcel is a part; plus
(c) Pro-Rata Share of Costs of Issuance; plus
(d) Pro-Rata Share of Reserve Requirement; plus
(e) Pro-Rata Share of Capitalized Interest, if any; plus
(f) Prior assessment liens, if any.
Prior to the mailing of the Notice of Hearing and the Assessment Ballot (see Section 4.06(c)
below) the Assessment Engineer will determine the not-to-exceed Assessment amount,
which will be included in the Assessment Ballot. The actual amount of the Assessment
will ultimately be less than or equal to the Assessment amount shown in the ballot.
4.06 Sequence of Events
Assessment Proceedings will consist of the following legal actions to be taken by the
Authority and the Program Administrator, in accordance with the SCIP Timetable for such
Program Series:
(a) Adoption of resolution of intention in substantially the form shown in
Appendix I.
(b) Adoption of resolution preliminarily approving Engineer’s Report and
calling public hearing in substantially the form shown in Appendix J.
(c) Mail the Notice of Hearing to each Property Owner at the address shown
on the most recent equalized assessment roll of the County or as
otherwise known to the Assessment Engineer, in substantially the form
attached as Appendix K. The Notice of Hearing will include a transmittal
letter, the Assessment Ballot, the Consent and Waiver and a copy of the
applicable preliminary Engineer’s Report.
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(d) Assessment Ballots and Consents and Waivers must be returned to the
Program Administrator no later than the deadline identified in the
transmittal letter.
(e) No earlier than 45 days after mailing of the notices, the Authority will
conduct a joint public hearing for all Assessment Districts in the Program
Series. Any Property Owner, Local Agency representative or member of
the general public will be given the opportunity to testify at the hearing.
Any Property Owner may withdraw their Assessment Ballot and Consent
and Waiver at the hearing, and in such event, the Property Owner will not
be included in the Assessment District and the Program Series.
(f) At the conclusion of the hearing, the Authority will customarily adopt the
following Resolutions:
(i) Resolution Confirming Assessment in substantially the form
attached as Appendix D.
(ii) Local Obligation Resolution in substantially the form attached
as Appendix E.
(iii) Revenue Bond Resolution in substantially the form attached as
Appendix F. (See Article V – Bonds.)
However, in some circumstances the Authority may need to defer adoption
of the Local Obligation Resolution and the Revenue Bond Resolution to a
later date, in which case the resolutions will be considered at such time as
circumstances permit. For example, the condition of the municipal bond
market in general may warrant deferral of these actions until a later time.
(g) Within approximately 5 days after the hearing and adoption of the above
resolutions, the Assessment Engineer will record the assessment diagram
and a notice of assessment against each Assessed Parcel in substantially
the form attached as Appendix L and will publish a notice of recording of
assessment in newspapers of general circulation within each County
containing an Assessment District in substantially the form attached as
Appendix M.
(h) The statute of limitations to challenge any Assessment runs 30 days after
the levy of the Assessment, which is the date on which the Resolution
Confirming Assessment is adopted.
(i) In the event the Authority determines to refinance any Program Series,
such refinancing shall not have any effect on the Local Obligations or the
Assessment Installments levied for such Program Series.
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V Bonds
5.01 Financing Structure
Funding of SCIP will be accomplished through a two-step process involving first, the
issuance of the Local Obligations under the Assessment Bond Act and second, the issuance
by the Authority of Bonds under the Revenue Bond Act. The Bonds for each Program
Series will be secured by the Local Obligations issued for all Assessment Districts in the
Program Series. By using this approach, the Authority will be pooling all of the
Assessments into a blended security which will provide benefits through diversification of
credit risk as well as economies of scale. The Local Obligations will be registered in the
name of the SCIP Trustee and held as security for the Revenue Bonds. Assessment
Installment payments will be applied to the payment of debt service on the Local
Obligations, which will in turn be applied by the SCIP Trustee, as holder of the Local
Obligations, to the payment of debt service on the Bonds.
5.02 Bond Documents
The Authority will approve a set of Bond Documents for each Program Series. Copies of
the draft Bond Documents for each Program Series will be made available for review by
any Local Agency or Applicant participating in the Program Series at least 15 days prior
to the adoption thereof by the Authority; provided, that the Authority reserves the right to
modify such Bond Documents thereafter.
5.03 Local Agency Closing Certificate
Each Local Agency which has Assessments in its jurisdiction for a Program Series will be
required to execute and deliver to the Authority a closing certificate, dated as of the Closing
Date, in substantially the form attached hereto as Appendix N.
5.04 Arbitrage Rebate
As set forth in Appendix O, the Program Administrator will provide all required arbitrage
rebate and yield restriction reporting services with respect to the Bonds, including
preparing the necessary Internal Revenue Service (“IRS”) documentation and instructing
the SCIP Trustee to make any required arbitrage rebate or yield reduction payments to the
IRS.
5.05 Continuing Disclosure
As set forth in Appendix P, the Program Administrator will provide the services necessary
to ensure that the Authority will meet its continuing disclosure obligation with respect to
the Bonds.
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5.06 Refunding Dividend Program
The Authority reserves the right to refinance the Bonds for any Program Series if the
Authority determines in its sole discretion that market conditions will allow the Authority
to achieve significant savings from such refinancing after payment of all costs of issuance
as determined by the Authority. Local Agencies may be asked to provide certain
certifications or agreements in connection with such refunding. Subject to applicable
federal tax limitations, all net savings generated from a refunding shall be monetized in the
refunding and each Local Agency will receive a pro rata credit for such savings in the
appropriate SCIP Trustee account, and such credited amount may be withdrawn by the
Local Agency to pay Capital Costs as provided in Article VI. Because all savings are
monetized and paid out to Local Agencies (subject to applicable federal tax limitations),
no refunding will result in a reduction of any Assessment or Assessment Installment.
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VI Funds Management & Administration
6.01 Deposits to SCIP
Payments from the Local Agency to SCIP of Fees paid to it by the Applicants to be
reimbursed, and Bond proceeds received by SCIP for prefunded Fees or for acquisition of
Improvements, will be deposited with the SCIP Trustee into the Custody Account. The
Custody Account will contain a subaccount for each separate Local Agency. That
subaccount is known as the “Local Agency Account.” Each Local Agency Account will
contain separate Fee Accounts (e.g., water, sewer, roadway, etc.) into which moneys
allocable to the Local Agency’s Fees will be deposited, as described in Section 6.03 and
6.04, below.
6.02 Access to SCIP Funds
Each Local Agency will access its Local Agency Account by submitting a disbursement
request to the Program Administrator for Capital Costs. Disbursement requests should be
submitted no earlier than the time of payment by the Local Agency for the Capital Costs.
The form of disbursement request is as set forth in Appendix Q. All disbursement requests
shall be forwarded either by facsimile or e-mail to the Program Administrator. Upon
receipt of a disbursement request, the Program Administrator will instruct the SCIP Trustee
to disburse the requested funds in accordance with the instructions provided by the Local
Agency. For disbursements by wire, each Local Agency will provide the Program
Administrator with contact information for the appropriate financial institution, including
wire instructions. Disbursements generally will occur within two business days of receipt
of a completed disbursement request.
6.03 Account Statements
The Program Administrator will provide each Local Agency with statements identifying
the balance in its Local Agency Account and the portion thereof which is allocable to each
Fee Account therein (e.g., water, sewer, roadway, etc.), the current market value of its
Local Agency Account, interest earnings credited and accrued during the statement period,
current investment holdings and cash flow activity. Such statements may be provided
monthly or quarterly at the election of the Local Agency.
6.04 Fee Account Allocation
The Program Administrator will record the allocation of funds held for each Local Agency
to each Fee Account based on directions provided by each Local Agency upon entering
SCIP.
6.05 Management of SCIP Funds
Funds held in SCIP accounts, including Local Agency Accounts, will be invested
appropriately at the direction of the Program Administrator. Investment instructions
provided to the SCIP Trustee by the Program Administrator will at all times conform with
SCIP’s investment policy as set forth in Appendix R. Investment earnings will be credited
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to each SCIP Account and subaccount therein for the benefit of the respective Local
Agencies.
6.06 Rejected Applications
Any Applicant whose application for Fee reimbursement is rejected will be notified by the
Program Administrator that the Fee reimbursement applied for is not eligible for
reimbursement. When an application is rejected, the Fees transferred to SCIP by the Local
Agency, if any, held in the applicable Local Agency Account, will be returned to the Local
Agency and the Local Agency will be responsible for accounting for such funds in the
appropriate capital accounts established for the Local Agency’s fee programs. Property
Owners shall not be entitled to any refund of Fee payments or costs paid in connection with
any rejected Application other than as approved by the Local Agency.
6.07 SCIP Record Retention Policy
The Program Administrator will maintain SCIP accounting records on site for not less than
2 years after a Local Agency closes its Local Agency Account and not less than 3 years
thereafter at an appropriate off-site location.
6.08 Inspection of SCIP Accounting Records
The Program Administrator will comply with reasonable requests of the Local Agencies to
inspect SCIP accounting records during normal business hours and, upon the request of a
Local Agency, will provide a Local Agency with a statement of the Local Agency Account.
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VII Collection of Assessments
7.01 Annual Posting
For each Assessment District, the Assessment Administrator will annually transmit to each
County, no later than the County’s deadline, the auditor’s record required by Section 8682
of the Assessment Bond Act for posting on the tax roll. The Assessment Installments will
appear on the property tax bill mailed by the County to each Property Owner as a separate
line item in substantially the following form:
“CSCDA SCIP Assessment District No. [20__-__] – $_____”
7.02 Administrative Cost Assessment
Pursuant to Section 10204(f) of the Assessment Act, the Authority will annually levy an
additional assessment to defray the costs of collection and administration of the
assessments and the Local Obligations which are not otherwise reimbursed in an amount
not to exceed 5% of the Assessment Installment for such year. Such amounts will be
applied by the Authority to pay Program Administration Costs and a full accounting will
be provided each year upon request to any Local Agency or Property Owner participating
in a Program Series. In addition, each County will add up to $8 per parcel to each semi-
annual Assessment Installment pursuant the Assessment Bond Act as an administrative
charge to defray the County’s costs of collecting assessments on the tax roll.
7.03 Payment of Assessment Collections to Authority
Each County will pay the Assessment Installments (net of the County’s administrative
charge) collected each year to the Authority and the Authority will immediately deposit
such funds as follows:
(a) Amounts representing Program Administration Costs will be deposited in
the Program Administration Fund established by the Program
Administrator.
(b) Amounts representing principal and interest installments of the
Assessments will be transferred to the SCIP Trustee for deposit in the
Revenue Fund held under the Trust Agreements for the appropriate
Program Series.
7.04 Interest Earnings on Funds and Accounts and Assessment Credits
(a) Program Administration Fund. Earnings on amounts held in the Program
Administration Fund will be retained in such fund and applied as a credit
against Program Administration Costs.
(b) Local Agency Accounts. Earnings on amounts in each Local Agency
Account shall be retained in each Local Agency Account and will be
available for withdrawal by the Local Agency as provided in Section 6.02.
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(c) Revenue Fund. Earnings on amounts in the Revenue Fund for each
Program Series held by the SCIP Trustee under each Trust Agreement
shall be retained in such Revenue Fund and applied as a credit on the
annual Assessment Installments in the next succeeding fiscal year, except:
(i) In the case of Refunding Bonds issued pursuant to the
Refunding Dividend Program, such earnings may be applied to
pay debt service on the Refunding Bonds in the event that
prepayments of Assessments require such earnings to be applied
to maintain cash-flow balance between the revenue from the
Local Obligations and the debt service payments on the
Refunding Bonds;
(ii) To the extent the portion of the Assessment Installments
actually collected by the Authority for Program Administration
Costs together with the amounts available in the Program
Administration Fund is less than the Program Administration
Costs, such earnings may be transferred to the Authority for
deposit in the Program Administration Fund to pay Program
Administration Costs; and
(iii) Notwithstanding the above, to the extent amounts are required
to be deposited in the Rebate Fund to pay arbitrage rebate with
respect to any Program Series, earnings on amounts in the
Revenue Fund and any Local Agency Accounts in excess of the
applicable bond yield (calculated pursuant to the Internal
Revenue Code and the regulations issued thereunder) may be
transferred to the Rebate Fund.
7.05 Prepayment of Assessments
Property Owners shall have the right at any time to prepay their Assessment in part or in
full. Payoff quotes may be obtained from the Assessment Administrator. Payoff quotes
will be calculated in accordance with the Assessment Bond Act, and assuming that the
applicable Assessment is not then delinquent, the payoff quote shall include the unpaid
principal amount of the Assessment, plus accrued interest at the rate of interest on the Local
Obligations, plus a prepayment premium not to exceed 3% of the unpaid principal amount
plus an administrative charge for the prepayment. In the event that the applicable
Assessment is then delinquent, an additional amount will be payable with respect to
reinstatement of such delinquencies. The Property Owner may be entitled to a credit for a
proportionate share of any reserve fund. Payoff quotes and prepayments will require
payment of administrative charges as established by the Assessment Administrator.
7.06 Delinquent Assessment Installments
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The Assessment Administrator will monitor the payment of all Assessment Installments
and will track any delinquencies in the payment of such Assessment Installments by
Property Owners (regardless of the remittance of such installments to the Authority by any
County pursuant to the provisions of Revenue & Taxation Code Sections 4717 and
following (the so-called “Teeter Plan”)). In the event an Assessment Installment is not
paid on or prior to December 10 or April 10 of any fiscal year, as the case may be, the
Assessment Administrator will take the following steps and any additional steps as directed
by the Authority:
(a) Within 90 days after the December 10 or April 10 due date of such
Assessment Installment, the Assessment Administrator shall send a
demand letter to the Property Owner in substantially the form set forth in
Appendix S. An administrative fee for sending the letter will be charged.
If the parcel goes to foreclosure it will be charged to the parcel; if the
delinquency is paid before it is stripped from the roll, the fee will simply
be an administrative expense of the Authority.
(b) If the Assessment Installment has not been paid, including any penalties,
within 30 days of the date of the initial demand letter, the Assessment
Administrator shall send a second letter by certified mail, in substantially
the form set forth in Appendix T, indicating that (i) the Assessment
Installment remains delinquent and (ii) the Authority will direct
Foreclosure Counsel to commence foreclosure proceedings on the
Assessed Parcel if payment is not received within 30 days of the receipt of
the second letter.
(c) Concurrently with sending the second demand letter to the Property
Owner, the Assessment Administrator shall determine whether there is a
mortgage lien on the Assessed Parcel and, if so, shall send a demand letter
by certified mail to the lender in substantially the form set forth in
Appendix U.
(d) If the Assessment Installment is not paid within the period specified in the
demand letters prescribed by the foregoing steps (b) and (c), then unless
the property owner is in bankruptcy or on active military duty, the
Assessment Administrator shall, after April 10 (in order to include both
installments if both are delinquent), cause a Notice of Intent to Remove
Delinquent Assessment Installment(s) from the Tax Roll to be recorded in
the office of the appropriate County Recorder, pursuant to Section
8833(a)(1) of the Assessment Bond Act, and then proceed to cause the
delinquent installments to be stripped from the County tax roll and submit
the delinquent installment information to Foreclosure Counsel (with a
copy to the SCIP Underwriter, the Program Administrator and SCIP
Counsel) to commence and prosecute, to the fullest extent permitted by
law, Superior Court judicial foreclosure proceedings against the Assessed
Parcel in accordance with the Assessment Bond Act and the Local
Obligation Resolution.
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(e) Upon notification by the Assessment Administrator and receipt from the
Assessment Administrator and SCIP Counsel of the information required
for the foreclosure complaint, Foreclosure Counsel may contact the
property owner and lender in an additional attempt to collect the stripped
assessment installments, penalties, interest, and all costs and expenses, but
will, prior to any applicable deadline, take all steps necessary to prepare
and file a complaint for judicial foreclosure of the lien of the Assessment
and will diligently prosecute such action to judgment and a sheriff’s sale.
(f) Once step (b) of this Section has been reached, the Property Owner shall
be required to pay the fees and expenses of the Assessment Administrator
and Foreclosure Counsel incurred with respect to the Assessed Parcel, in
addition to any delinquent Assessment Installment, penalties and interest
assessed by the applicable County, in order to bring the Assessed Parcel
current. In addition, if step (b) of this Section has been reached with
respect to any Property Owner, such Property Owner will be barred from
further participation in SCIP absent a specific waiver approved by the
Legislative Body.
7.07 Tenders of Bonds Not Permitted
All of the Local Obligations will be held by the SCIP Trustee for the benefit of the holders
of the Bonds. Although Section 8688 of the Assessment Bond Act allows owners of
property within assessment districts to tender bonds issued under the Assessment Bond Act
for payment of assessment installments, the Bonds are not issued under the Assessment
Bond Act and Property Owners who may hold Bonds will not be permitted to tender such
Bonds in the payment of Assessment Installments.
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VIII Property Owner Information
8.01 Balance and Payoff Information
The Assessment Administrator will maintain a database of information with respect to each
Assessed Parcel which will allow the Property Owner or any other interested person to
obtain either a current balance or a payoff quote for the Assessment on such parcel. The
Assessment Administrator will be permitted to charge a reasonable fee for providing such
information as provided in the current schedule of fees of the Assessment Administrator
on file with the Program Administrator.
8.02 Disclosure of Assessment
Each Property Owner shall comply with the requirements of applicable law with respect to
the disclosure of the Assessment to any purchaser of an Assessed Parcel. The form of
disclosure notice to subsequent purchasers is attached as Appendix V. For a reasonable
fee in accordance with the schedule of fees maintained by the Assessment Administrator,
the Assessment Administrator will supply a completed notice for any individual Assessed
Parcel upon request.
8.03 Billing Questions
The Assessment Administrator will maintain a toll free telephone number to respond to
inquiries from Property Owners concerning billing of Assessment Installments.
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IX Miscellaneous
9.01 Use of this Manual
This Manual is intended to provide guidance to Local Agencies, Applicants, Property
Owners and SCIP consultants in the implementation of SCIP’s programs. It is not intended
to supersede or replace the legal documents which are used in the SCIP programs. In case
of any inconsistency between the provisions of this Manual and such legal documents, the
legal documents will control. Capitalized terms used in this Manual have the meanings
given under the tab, “Glossary of Terms.”
9.02 Contact Information
The contact information for SCIP is provided at the beginning of this Manual. Any notice
or other correspondence must be sent by first-class mail to the addresses listed and any
communication by facsimile or e-mail will not be considered effective unless a copy is also
sent by first class mail.
9.03 Limited Liability
In no event will any Local Agency or any of its officers, employees or agents be liable for
the payment of Assessments, Assessment Installments, Program Administration Costs,
Costs of Issuance or any other fees or expenses in connection with SCIP. Neither the
Authority nor any of its members, officers, employees or agents will be liable for the
payment of Assessments, Assessment Installments, Program Administration Costs, Costs
of Issuance or any other fees or expenses in connection with SCIP except from the
Assessment Installments or other funds and accounts established pursuant to SCIP.
9.04 Legal Representation
SCIP Counsel will represent only the Authority in connection with the SCIP program and
shall not be deemed to have an attorney-client relationship with any Local Agency,
Applicant or other participant or party in connection with SCIP or any Program Series. By
participating in SCIP, each Local Agency, Applicant or other participant or party agrees
that there is no conflict of interest with respect to any other relationship with SCIP Counsel
on other matters and, to the extent such conflict is deemed to exist, waives the conflict.
9.05 Interpretation
This Manual is intended to be an operating guide for SCIP, to be used by the Authority,
the program consultants and Local Agency participants in implementing and administering
SCIP. Interpretation of this Manual will be controlled by the Program Administrator in
consultation with SCIP Counsel, subject to final approval by the Legislative Body, whose
determinations shall be final and conclusive.
9.06 Revisions to this Manual
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SCIP is an ongoing program, and from time to time the Authority may determine that
revisions are required to SCIP and this Manual for the purpose of improving the program
in the interests of the Authority, the Local Agencies and other parties. This Manual will
be updated and revised from time to time as approved by the Legislative Body and revised
editions will be posted on the Authority’s website at
http://www.cacommunities.org (follow “Statewide Community Infrastructure Program
(SCIP)” hyperlink).
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Glossary of Terms
Capitalized terms used in this Manual have the meanings given below, unless the context requires
otherwise.
Acquisition Agreement means the agreement between the Local Agency and the Applicant, in
substantially the form attached as Exhibit A to the SCIP Resolution, the form of which is attached
hereto as Appendix G, and providing the terms and conditions upon which the Applicant will be
reimbursed all or a portion of the cost and expense of Eligible Improvements completed by the
Applicant, all as more fully provided by and subject to the limitations set forth in the agreement.
Applicant means a person who applies for financing of Eligible Impact Fees and/or Eligible
Improvements through SCIP.
Application means a completed application for financing of Eligible Impact Fees and/or Eligible
Improvements, submitted by a Property Owner to the Program Administrator. The two forms
which must be completed and submitted, together with applicable attachments, to constitute a
completed Application, are entitled “SCIP Application” and “SCIP Landowner Information Form,”
respectively, and are set forth in Appendix A.
Appraisal means an appraisal of one or more Assessed Parcels prepared by an independent
professional appraiser who is a Member of the Appraisal Institute (MAI), and is selected by the
Authority from an approved list on file with the Authority.
Appraised Value means the market value of an Assessed Parcel as shown in an Appraisal.
Assessed Parcel means a parcel of land subject to or proposed to be subject to an Assessment.
Each Assessed Parcel must be a legal parcel in compliance with the Subdivision Map Act.
Individual condominium units in a condominium project will be deemed legal parcels for this
purpose once a separate Assessor’s Parcel Number has been assigned to each condominium unit in
the condominium project by the County Assessor for the County in which the condominium project
is located.
Assessed Value means the assessed value (land and improvements) of an Assessed Parcel as shown
on the most recent equalized assessment roll (including any supplemental roll) of the County in
which the Assessed Parcel is located.
Assessment means a special assessment levied by the Authority on property pursuant to the
Assessment Act.
Assessment Act means the Municipal Improvement Act of 1913, being Division 12 of the Streets
& Highways Code of the State.
Assessment Administrator means David Taussig & Associates or any successor firm appointed
by the Authority as the Assessment Administrator for SCIP.
Assessment Ballot means a Property Owner assessment ballot with respect to a proposed
Assessment in substantially the form set forth in Appendix B.
Assessment Bond Act means the Improvement Bond Act of 1915, being Division 10 of the Streets
& Highways Code of the State.
Assessment District means an assessment district formed by the Authority pursuant to the
Assessment Act for the purpose of financing Eligible Impact Fees and/or Eligible Improvements
through the issuance of Local Obligations.
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Assessment Engineer means David Taussig & Associates or any successor firm appointed by the
Authority as the Assessment Engineer for SCIP.
Assessment Installment means an annual installment payable with respect to an unpaid
Assessment and consisting of principal, interest and administrative charges.
Authority means the California Statewide Communities Development Authority, a joint exercise
of powers authority duly established pursuant to the laws of the State.
Bond Documents means, with respect to each Program Series, the Revenue Bond Resolution, Trust
Agreement, Local Obligation Resolution, Bond Purchase Agreement, Continuing Disclosure
Agreement, Preliminary and final Official Statement, Escrow Agreement (in the case of
refundings), and any and all other documents deemed necessary by SCIP Counsel to the
authorization, sale and issuance of Bonds.
Bonds means bonds issued by the Authority for SCIP under the Revenue Bond Act, the proceeds
of sale of which are applied to the purchase of the Local Obligations of the applicable Program
Series.
Capital Costs means costs properly chargeable to a capital account pursuant to generally accepted
accounting principles incurred for either (1) public capital improvements legally payable from
Eligible Impact Fees or (2) Eligible Improvements.
Closing Date means the date on which the Bonds for a Program Series are initially delivered to the
SCIP Underwriter.
Consent and Waiver means a consent and waiver of a Property Owner in substantially the form
set forth in Appendix C.
Costs of Issuance means, with respect to each Program Series, all costs of issuing the Bonds and
the Local Obligations, including without limitation costs of appraisals, engineer’s reports,
apportionment fees, absorption studies, credit enhancement (such as bond insurance), rating agency
fees, underwriter’s discount, legal fees and expenses, Authority fees and expenses, trustee fees and
expenses, printing, publication, document reproduction, filing and recording costs and any other
cost related to the issuance of the Bonds or the Local Obligations. Costs of issuance may also
include an amount calculated by the Authority as the amount necessary to pay Program
Administration Costs through the first full fiscal year of each Program Series.
Custody Account means the account established by the SCIP Trustee pursuant to the Trust
Agreement for each Program Series and into which is deposited that portion of the proceeds of sale
of the Bonds for such Program Series representing (1) Eligible Impact Fees financed under the Fee
Prefunding Program and (2) amounts financed on account of Eligible Improvements.
Declaration of Official Intent to Reimburse means the written statement of the Local Agency,
received in connection with the Application, declaring the intention to reimburse expenditures
made by or on behalf of a Property Owner with respect to Eligible Impact Fees or Eligible
Improvements prior to issuance of Bonds of the applicable Program Series.
Eligible Impact Fee means a fee levied or collected by a Local Agency pursuant to a Fee Statute
and otherwise meeting the requirements of Section 2.02.
Eligible Improvement means a public capital improvement authorized by the Assessment Act,
together with authorized incidental expenses associated therewith, and otherwise meeting the
requirements of Section 2.02.
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Engineer’s Report means the report prepared by the Assessment Engineer for each Assessment
District, which shall contain the information required by Section 10204 of the Assessment Act and
shall be signed by a California registered professional engineer.
Fee Account means the separate account for each category of Eligible Impact Fees established by
the SCIP Trustee for each Local Agency pursuant to Article VI.
Fee Prefunding Program means that component of SCIP pertaining to the financing of Eligible
Fees on behalf of an Applicant, with payment being made directly to the Local Agency or other
governmental entity to which the Eligible Fees are payable.
Fee Reimbursement Program means that component of SCIP pertaining to the financing of
Eligible Fees which have been paid by an Applicant prior to the Closing Date of the Bonds of a
given Program Series.
Fee Statute means the Mitigation Fee Act (California Government Code Sections 66000 and
following) or any other State law or local legislation imposing fees on new development to pay for
the Capital Costs of public capital improvements.
Foreclosure Counsel means Sherman & Feller, A Law Corporation, or any other attorney or firm
of attorneys designated from time to time by the Legislative Body to act as counsel to the Authority
in prosecuting foreclosure actions in connection with SCIP.
Legislative Body means the commission of the Authority.
Local Agency means a city, county or city and county which is a member of the Authority and has
an effective SCIP Resolution in place.
Local Agency Account means the subaccount established by the SCIP Trustee within the Custody
Account, as described in Section 6.01.
Local Obligation Resolution means a resolution of the Authority in substantially the form set forth
in Appendix E.
Local Obligations means limited obligation improvement bonds issued by the Authority under the
Assessment Bond Act for SCIP and pledged as security for Bonds of a given Program Series.
Program Administration Costs means all costs of administering each Program Series, including
fees and expenses of the Program Administrator, Assessment Administrator, SCIP Counsel,
Foreclosure Counsel and any other costs or expenses of administering each Program Series.
Program Administration Fund means the fund established by the SCIP Trustee for the payment
of Program Administration Costs.
Program Administrator means BLX Group LLC, or any successor firm appointed by the
Authority as the Program Administrator for SCIP.
Program Series means an individual series of Bonds to be issued to fund an Application or a group
of Applications, as shall be determined by the Authority, or a series of Bonds issued to refund any
Program Series.
Project means a development project being undertaken by an Applicant within a Local Agency
which has been conditioned upon either (a) payment of impact fees or (b) construction and
installation of public capital improvements or both and for which an Application for SCIP financing
of Eligible Impact Fees and/or Eligible Improvements has been submitted by an Applicant.
Property Owner means the legal owner(s) of property subject to an Assessment or for which an
Application has been filed.
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Pro-Rata Share means a percentage determined by dividing the amount of the assessment for an
Assessed Parcel by the total amount of assessment being financed in the applicable Program Series.
Rebate Fund means the fund by that name established by the SCIP Trustee for each Program
Series for the purposes of holding amounts payable to the United States Treasury pursuant to the
requirements of Section 148 of the Internal Revenue Code and the regulations issued thereunder.
Refunding Bonds means Bonds issued pursuant to the Refunding Dividend Program.
Refunding Dividend Program is the SCIP program described in Section 5.06.
Reserve Requirement means, with respect to the Bonds issued for any Program Series, the amount
required to be maintained in the Reserve Account within the Revenue Fund for such Program
Series. The Reserve Requirement will normally be equal to the maximum annual debt service on
the Bonds for the Program Series; however the Authority may determine to establish a lower
Reserve Requirement for any Program Series if feasible.
Resolution Confirming Assessment means a resolution of the Authority in substantially the form
set forth in Appendix D.
Revenue Bond Act means Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code
of the State.
Revenue Bond Resolution means a resolution of the Authority in substantially the form set forth
in Appendix F.
Revenue Fund means the fund by that name established by the SCIP Trustee under each Trust
Agreement for a Program Series, including the following subaccounts: the Interest Account, the
Principal Account and the Reserve Account.
SCIP means the Authority’s development impact fee and public capital improvement financing
program known as the “Statewide Community Infrastructure Program.”
SCIP Counsel means Orrick, Herrington & Sutcliffe LLP, or such other attorney or firm of
attorneys who are nationally recognized bond counsel selected and appointed by the Authority.
SCIP Resolution means a resolution of the governing body of a Local Agency in substantially the
form attached as Appendix G.
SCIP Timetable means the time schedule for each Program Series as approved by the Authority.
A sample SCIP Timetable is provided in Appendix H and a specific SCIP Timetable will be
established by the Authority, in consultation with the SCIP Underwriter, for each Program Series.
SCIP Trustee means Wells Fargo Bank, National Association, or any successor appointed by the
Authority as Trustee for SCIP.
SCIP Underwriter means RBC Capital Markets or any successor firm(s) appointed by the
Authority as the underwriter(s) for SCIP.
State means the State of California.
Subdivision Map Act means the provisions of Division 2 of Title 7 of the Government Code of
the State, commencing at Section 66410.
Trust Agreement means a trust agreement, indenture, or similar instrument which secures and
provides the terms for issuance and administration of a given Program Series.
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Appendices
Appendix Description
A Form of Application and Landowner Information
B Form of Assessment Ballot
C Form of Property Owner Consent and Waiver
D Form of Resolution Confirming Assessment
E Form of Local Obligation Resolution
F Form of Revenue Bond Resolution
G-1 Form of SCIP Resolution, with attachments:
• Form of CSCDA Resolution of Intention
• Form of Acquisition Agreement
• SCIP Contacts
G-2 Sample Staff Report
G-3 Form of Notice of Public Hearing
H Sample SCIP Timetable
I Form of Resolution of Intention
J Form of Resolution Preliminarily Approving Engineer’s Report
K Form of Notice of Hearing
L Form of Recorded Notice of Assessment
M Form of Published Notice of Recording of Assessment
N Form of Local Agency Closing Certificate
O Arbitrage Rebate Services
P Continuing Disclosure Services
Q SCIP Disbursement Form
R SCIP Investment Policy
S Form of Initial Demand Letter of Delinquent Property Owner
T Form of Second Letter of Delinquent Owner
U Form of Lender Demand Letter
V Form of Disclosure Notice to Subsequent Purchasers
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APPENDIX A
Form of Application and Landowner Information
SCIP APPLICATION
Applicant Information
Name of Project: _________________________________________________________________________________
Location/Address of Project Site: _____________________________________________________________________
Name of Developer: ______________________________________________________________________________
Contact Information
Name: _______________________________________________ Title: _____________________________________
Address: _______________________________________________City: _____________________________________
Zip Code: _______________________________________________________________________________________
Email: ___________________________________________ FAX: ________________________________________
Applicant Acknowledgment
One of the following is true and correct: (A) The undersigned represents the owner(s) of the project, including a joint
owners by tenancy in common, community property, joint tenancy or otherwise, or (B) the undersigned has this project
under option.
Signed: _____________________________________________________ Dated: ______________________________
Social Security Number or Taxpayer ID Number: ________________________________________________________
Local Agency Information
Local Agency Name: ______________________________________________________________________________
MailingAddress
(City/County/State/Zip): __________________________________________________________________________
Contact Information
Name: _______________________________________________ Title: _____________________________________
Telephone: ___________________ FAX: __________________ Email: _____________________________________
Local Agency Acknowledgement
I hereby certify that I am an authorized representative of the Local Agency, and that I have been authorized by the
Local Agency to execute this Preliminary Application for CSCDA financing.
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Signed:_____________________________________________________Dated: _______________________________
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SCIP LANDOWNER INFORMATION
FOR THE CITY OR COUNTY OF: _________________________________________________________________________
THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY (“CSCDA”) INTENDS TO ISSUE TAX-
EXEMPT BONDS (THE “BONDS”) TO FINANCE CERTAIN IMPACT FEES FOR THE CITY/COUNTY. UNDER FEDERAL
AND STATE SECURITIES LAWS, THE CITY/COUNTY IS REQUIRED TO DISCLOSE ALL MATERIAL FACTS TO THE
PURCHASERS OF THE BONDS. FOR THIS REASON, IT IS IMPORTANT THAT YOU ANSWER EACH OF THE
FOLLOWING QUESTIONS COMPLETELY AND ACCURATELY. YOUR PROMPT AND COMPLETE RESPONSE TO THIS
QUESTIONNAIRE IS CRITICAL TO THE CSCDA’S ABILITY TO ISSUE BONDS TO FINANCE YOUR DEVELOPMENT
IMPACT FEES.
OWNERSHIP
Name of Landowner:
Please describe the ownership structure of the Landowner (i.e., individuals, family trust, partnership, corporation, etc.). Please include
resumes of key individuals responsible for making decisions for Landowner. Please include a copy of relevant formation docum ents
(partnership agreement, articles of incorporation and bylaws, family trusts, etc.)
Name of Developer: (if different from Landowner).
Evidence of Legal Title (please include copy of a grant deed or title report)
PROPERTY INFORMATION
For the (the “Property”) within the proposed Assessment District, please list the following:
Number of gross acres owned:
Number of acres proposed for development:
Number of acres developed to date, if any:
List the Assessor’s Parcel Numbers for the Property:
How long have you owned the Property?
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DEVELOPMENT IMPACT FEES TO BE FINANCED BY SCIP
(Attach Fee Schedule or list below)
Type (water, sewer, road, etc.) Amount
TOTAL:
Have you entered into any option or other form of agreement to sell all or a portion of the Property?
YES_____ NO_____. If YES, please describe the arrangement and attach a copy of agreements describing the arrangement.
Describe the proposed land use of the Property:
Is the Property proposed for residential, commercial retail, industrial or a combination of different land uses?
Please state the total number of residential units proposed (single family of multi family), and the total land acreage and b uilding square footage for commercial,
retail, or industrial development proposed.
Describe the expected timing for development of the Property: If available, please list projected sales or leasing information.
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What is the status of land use approvals, maps and ElR’s for the Property (i.e., briefly describe the current zoning and the status of any
Development Agreements, Specific Plans, tentative maps or final maps for the Property)?
Will any impact fees be owing after funding by SCIP as a condition to develop the Property? YES_____ NO_____. If YES, please explain.
Is any development currently underway on the Property? YES_____ NO_____. If YES, please give a general description and provide information as
to estimated construction or permit value.
Are there any existing trust deeds/loans on the Property? Please state the name, address and telephone number of the lending institution and the
approximate loan amount.
Has construction financing been obtained? YES_____ NO_____. If YES, please describe the source and amount of such loan. Please provide any other
information on how the project is to be financed.
Has the developer or any partner or related entity of the landowner ever filed for bankruptcy or been declared bankrupt? YES_____
NO_____ If YES, specify date and location of court where bankruptcy action took place:
Are there any other foreseeable circumstances not described above that could prevent or significantly delay the proposed development
of the Property? YES_____ NO_____. If YES, please explain. Please attach a copy of the most recent tax bill for the Property and evidence that current
installments due have been paid.
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PAYMENT OF TAXES/ASSESSMENTS
What is the current status of property taxes, special taxes and assessments on the Property (paid/owing/delinquent). If any property
taxes or assessments on the Property are delinquent or have been delinquent at any time during the past 3 years? If YES, please explain.
Attach a copy of the latest tax bill.
Describe the source of funds that you will use to pay any taxes/assessments to be levied on your Property in connection with the Assessment District (i.e., bank
savings, land sale proceeds, loan proceeds, etc.).
Do you foresee any difficulty in your ability to make timely payment of your taxes/assessments? YES_____ NO_____. If YES, please explain.
EXPERIENCE OF LANDOWNER AND DEVELOPMENT GROUP
Describe the development experience of the Landowner developer or affiliated construction entity. Briefly describe any curren t or recently completed
developments undertaken by the Landowner. Please provide corporate literature and sales brochures, if available.
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NOTICE REGARDING DISCLOSURE
In 1994, the Securities and Exchange Commission adopted amendments (the “Amendments”) to Rule 15c2-12 under the Securities Exchange Act of 1934 relating
to certain required disclosure information that must be made available to prospective purchasers of municipal bonds. Under the Amendments and other federal
and state securities laws, certain material information must be disclosed
(i) in connection with the initial offering of bonds with respect to material persons”; and (ii) on an ongoing basis with respect to obligated persons.”
Whether a property owner/developer might be a material person or an obligated person will depend on all of the facts and circumstances. If the information you
provide in response to this questionnaire indicates this might be the case, the financing team will review with you the information that may need to be disclosed to
potential Bond investors in order to satisfy the Amendments and other federal and state securities laws.
If information on the proposed development of your property is disclosed in connection with the sale of the Bonds, you will be required to certify at that time that
the information is true and correct and does not omit to state any material fact.
If we have additional questions regarding your Property, who is the appropriate person to contact?
Name: ____________________________________________________________________
Title: _____________________________________________________________________
Address: __________________________________________________________________
Phone Number: ____________________________________________________________
Thank you for your assistance in providing the above information, which is essential to enable SCIP to move forward with the proposed financing.
SUBMITTAL INSTRUCTIONS
Please mail or fax a copy of this Landowner information with the Application to the following people. Also, please mail the $1,500 application fee to CSCDA-
SCIP attn: Daniel Chang. The application and landowner information form can also be filled out and sent by going online to SC IP at www.cacommunities.org
Statewide Community Infrastructure Program
c/o Orrick, Herrington & Sutcliffe
400 Capitol Mall, Suite 3000
Sacramento, CA 95814
Attention: Patricia Eichar
Phone: (916) 329-7917
Fax: (916) 329-4900
Email: peichar@orrick.com
Statewide Community Infrastructure Program
RBC Capital Markets
345 California Street, Suite 2800
San Francisco, California 94111
Attention: Bob Williams
Phone: (415) 445-8674
Fax: (415) 445-8679
Email: bob.williams@rbccm.com
Statewide Community Infrastructure Program
c/o BLX Group LLC
777 South Figueroa Street, Suite 800
Los Angeles, California 90017
Phone: (213) 612-2205
Fax: (213) 612-2499
dchang@blxgroup.com
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APPENDIX B
Form of Assessment Ballot
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ASSESSMENT DISTRICT NO. ______
(COUNTY OF __________, CALIFORNIA)
OFFICIAL PROPERTY OWNER ASSESSMENT BALLOT
This assessment ballot is for the use of the property owner of the parcel identified below, which parcel is located
within the proposed Statewide Community Infrastructure Program Assessment District No. _______ (County of ______,
California). Please advise ________________________, Assessment Administrator for SCIP, at (___) ___-____ if the
name set forth below is incorrect or if you are no longer the owner of this parcel.
This assessment ballot may be used to express either support for or opposition to the proposed assessment
district. In order to be counted, this assessment ballot must be marked (“Yes” or “No”), dated and signed below
by an owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must
then be delivered to the California Statewide Communities Development Authority (the “Authority”) either by mail or in
person, as follows:
Mail Delivery: If by mail, place ballot in the self-addressed, return envelope provided for delivery to
____________, Orrick, Herrington & Sutcliffe LLP, 405 Howard Street, San Francisco, CA 94105.
Personal Delivery: If in person, to California Statewide Communities Development Authority, in care of
____________ at the above address in San Francisco, at any time up to 4:30 p.m. on ___________, 20__ (the day before
the ________ hearing) , or at the protest hearing itself scheduled for ____ _.m. on ________ or any continuation thereof
at the offices of _____________, _______ Street, Suite ____, Sacramento, California.
However delivered, this ballot must be received by the California Statewide Communities Development
Authority prior to the close of the public hearing, whether on _______, 20__, or any date to which the public hearing is
continued, to be counted.
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.
OFFICIAL ASSESSMENT BALLOT
Property Owner Name: ________________________________________
Assessment No.
____
Parcel No.
______________
Amount of Assessment
$____________
ASSESSMENT BALLOT MEASURE
Shall the California Statewide Communities Development Authority establish the
proposed Statewide Community Infrastructure Program Assessment District No.
______ (County of _____, California), levy an assessment not to exceed the amount
set forth above on the parcel identified, issue bonds in the amount of unpaid
assessments, and proceed with the proposed funding of eligible development impact
fees and/or public capital improvements?
Yes _____
No _____
Date : _______________________________
Owner Signature(s) : __________________________________________
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APPENDIX C
Form of Property Owner Consent and Waiver
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ASSESSMENT DISTRICT NO. ________
(COUNTY OF _______, CALIFORNIA)
CONSENT AND WAIVER
The undersigned hereby certifies, consents and waives as follows:
1. The undersigned acknowledges receipt of (a) the Notice of Public Hearing and Assessment Ballot Procedure,
(b) the Official Property Owner Assessment Ballot and (c) the Engineer’s Report pertaining to the Statewide
Community Infrastructure Program Assessment District No. _____ (County of ______, California), for
which the public hearing is scheduled for ____________, 20__, at the time and place set forth in the notice.
2. The undersigned is/are the owner(s) or an authorized representative of the owner(s) of the parcel(s) identified
in Exhibit ___ of the Engineer’s Report as Assessment No. _____, with a proposed assessment to be levied
on said property in the amount of ____________.
3. The undersigned hereby consents to the levy of assessments upon the above-mentioned parcel(s) in said
amount by action of the California Statewide Communities Development Authority following the close of
the public hearing on ____________, 20__.
4. The undersigned hereby expressly acknowledges that the assessment installments payable with respect to the
above-mentioned parcels shall not be subject to reduction, offset, or credit of any kind in the event that the
bonds secured thereby are refunded or for any other reason.
5. The undersigned expressly waive each of the following:
(a) any and all defects in notice or procedure in the conduct of the public hearing and the assessment
ballot procedure, whether known or unknown;
(b) the entitlement to pay all or any portion of the assessments levied upon the above-mentioned
parcel(s) in cash (which entails the benefit of a cash payment discount) prior to the issuance, sale
and delivery of bonds upon the security of the unpaid assessments;
(c) the entitlement to file any lawsuit or other proceeding to challenge any aspect of the proceedings
of the California Statewide Communities Development Authority relative to Statewide
Community Infrastructure Program Assessment District No. _____ (County of ______,
California), including without limitation, the assessment ballot proceeding, the levy of the
assessments or the issuance, sale and delivery of bonds, which entitlement would otherwise
extend 30 days beyond levy of the assessments (currently scheduled to occur on ___________,
20__) pursuant to Section 10400 of the California Streets and Highways Code;
(d) the right to notice and a hearing on any modifications or changes to the Engineer’s Report
between the preliminary approval thereof on _____________, 20__, and the final approval
thereof following the close of the public hearing on _______________, 20__;
(e) in the case of any changes to the configuration of the parcel(s) between the preliminary approval
of the Engineer’s Report on ___________, 20__ and the final approval thereof on __________,
20__, which results in increase in the assessment(s) to be levied in the above-mentioned parcel(s),
the undersigned hereby consents to the increased assessment(s) and hereby waives any and all
mailed notice or further hearing which would otherwise be required by law in order for the
California Statewide Communities Development Authority to consider such increase in
assessment; and
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(f) mailed notice of recording of assessments.
This waiver and each part of it is given for the express purpose of enabling and inducing the California Statewide
Communities Development Authority to expedite the issuance, sale and delivery of bonds.
Executed at ______________________________, California, on _________________, 20__.
[NAME OF PROPERTY OWNER]
By_____________________________________________
(signature)
_______________________________________________
(print name and title of signer)
NOTE: If this form is signed by an authorized representative (other than an officer) of the property
owner(s) of the parcel(s), please attach evidence of authorization to sign on behalf of the property
owner(s).
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APPENDIX D
Form of Resolution Confirming Assessment
RESOLUTION NO. _____
RESOLUTION OF THE COMMISSION OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY APPROVING FINAL ENGINEER’S
REPORTS, LEVYING ASSESSMENTS, ORDERING THE FINANCING OF SPECIFIED
DEVELOPMENT IMPACT FEES AND PUBLIC CAPITAL IMPROVEMENTS,
CONFIRMING THE AMOUNT OF UNPAID ASSESSMENTS, AND DIRECTING
RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority is a joint exercise of powers entity
duly organized and existing under and by virtue of the laws of the State of California (the “Authority”), with this
Commission (this “Commission”) serving as the legislative body of the Authority; and
WHEREAS, this Commission has taken a series of actions pursuant to the Municipal Improvement Act of 1913
(Division 12, commencing with Section 10000 of the Streets and Highways Code of the State of California) (the “1913
Act”) preliminary to ordering the financing of certain development impact fees (the “Fees”), the proceeds of which will
be used to pay the cost of certain public capital improvements, and preliminary to ordering the direct financing of certain
public capital improvements (the “Improvements”), in each case eligible to be funded under the 1913 Act, which Fees and
Improvements are described in the Final Engineer’s Reports (as defined below) approved by this Resolution, said fees to
be charged to the parcels of land with respect to which the Fees are payable, and said Improvements to be charged to the
parcels of land according to benefit, and the related incidental expenses to be charged on a pro rata basis, all, in connection
with the proposed development of said parcels of land that are situated within one of the ______ assessment districts (the
“Districts”) to be denominated as set forth in Exhibit A attached hereto and by this reference incorporated in this
Resolution; and
WHEREAS, the program of the Authority providing for the financing of eligible development impact fees and
public capital improvements is commonly known as the “Statewide Community Infrastructure Program,” or “SCIP;” and
WHEREAS, on _______, 20__, this Commission approved the boundary maps for the Districts and adopted
its Resolutions of Intention relating to the Districts, and such boundary maps were thereafter filed for record in the office
of the County Recorders of the Counties in which the Districts are located; and
WHEREAS, in accordance with the direction of this Commission provided in the Resolutions of Intention, the
Assessment Engineer of the Authority for SCIP, as Engineer of Work (the “Engineer of Work”), prepared and filed with
the Authority on _______, 20__, ______ separate reports containing the information regarding the Districts required by
Section 10204 of the Streets and Highways Code of the State of California, which reports were duly presented to this
Commission for preliminary consideration; and
WHEREAS, this Commission, by ______ separate resolutions duly adopted on _______, 20__ (the
“Resolutions of Preliminary Approval”), corresponding to the ______ proposed Districts, preliminarily approved the
reports, and fixed ____ [a.m./p.m.], or as soon thereafter as the matter might be heard, on _________, 20__, at the offices
of the ________________, ______, Suite ___, ____________, California, as the time and place for a public hearing with
respect to the financing of the Fees and Improvements, to the extent of the Districts and to the levy of the assessments
therein (the “Assessments”); and
WHEREAS, this Commission directed that notice of the public hearing and the related property owner
assessment ballot procedure be given in the time, form and manner required by Article XIIID of the California
Constitution (“Article XIIID”), together with the property owner assessment ballots themselves; and
WHEREAS, the administrator (the “Program Administrator”) of SCIP has filed with the Authority ______
separate certificates setting forth the time and manner of the compliance with the requirements of law for mailing (a) the
notices of the public hearing and assessment ballot procedure and (b) the property owner assessment ballots, as required
by Article XIIID; and
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WHEREAS, this Commission hereby finds and determines that notices of public hearing and assessment ballot
procedure and the property owner assessment ballots themselves have been mailed in the time, form and manner required
by Article XIIID; and
WHEREAS, said public hearing was duly convened by this Commission as a consolidated public hearing for all
______ of the Districts at said time and place specified in the notice of public hearing, and this Commission has proceeded
with said public hearing and duly heard all interested parties desiring to be heard at said public hearing on any aspect of
any of the ______ proposed Districts; and
WHEREAS, having thereupon closed the public hearing, and the assessment ballots which had been returned
having then been opened and tallied, and it having been determined that all of the assessment ballots which were returned
were marked in support of the proposed levy of Assessments, this Commission hereby finds and determines that property
owner assessment ballots cast against the levy of the Assessments did not exceed the property owner ballots cast in favor
of the levy of the Assessments, with the assessment ballots weighted in proportion to the amount of the proposed
Assessment for the parcel to which each such assessment ballot pertains; and
WHEREAS, prior to the public hearing on the date hereof, the Engineer of Work found it necessary to prepare
and submit modified engineer’s reports due to certain changes to some of the parcels in the Districts and/or the Fees and
Improvements to be financed by the Assessments; and
WHEREAS, on the basis of the foregoing, the Engineer of Work has prepared and filed with the Authority for
consideration ______ Final Engineer’s Reports relating to the Districts (the “Final Engineer’s Reports”); and
WHEREAS, this Commission has elected to comply with the requirements of Part 7.5 of the Special Assessment
Investigation, Limitation and Majority Protest Act of 1931 (the “1931 Act”), being Division 4 (commencing with Section
2800) of Streets and Highways Code of the State of California, and on the basis of the information included in each of the
Final Engineer’s Reports, this Commission hereby finds and determines that the requirements of the 1931 Act are satisfied
in the manner provided by subsection (d) of Section 2961 of said Part 7.5 of the 1931 Act; and
WHEREAS, there has been filed with the Authority a Consent and Waiver executed by each owner of each of
the parcels upon which an Assessment is proposed to be levied or by an authorized representative of each owner, waiving
the entitlement to pay all or any part the Assessment in cash within the 30-day cash payment period, and consenting to
the modifications made to the applicable Engineer’s Report between the preliminary approval thereof and approval of the
Final Engineer’s Reports by this Resolution; and
WHEREAS, on the basis of the executed Consent and Waiver forms on file with the Authority, in which each
owner of each parcel on which an Assessment is proposed to be levied has waived the entitlement to pay all or any portion
of such Assessment levied upon the such parcel in cash (which entails the benefit of a cash payment discount) prior to the
issuance, sale and delivery of bonds upon the security of such Assessment, the Authority has confirmed that the amount
of unpaid Assessments is equal to the full amount of the Assessments levied;
NOW, THEREFORE, BE IT RESOLVED by the Commission of the California Statewide Communities
Development Authority, as follows:
Section 1. The foregoing recitals are true and correct, and this Commission so finds and determines.
Section 2. There having been no protest received (either written or oral) from any owner of any of the
parcels of land upon which an Assessment is proposed to be levied, this Commission finds that there has not been a
“majority protest,” as said term is defined by Article XIIID, and this Commission hereby overrules all protests received,
if any, whether written and oral, from any other person.
Section 3. This Commission hereby approves the Final Engineer’s Reports and the component parts
thereof, including each exhibit incorporated by reference in the reports.
Section 4. This Commission hereby finds and determines that the requirements of the 1931 Act have
been satisfied in the manner provided by Part 7.5 thereof, and this action shall be final as to all persons.
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Section 5. This Commission hereby finds and determines that the Engineer of Work, in the Final
Engineer’s Reports, has fairly and properly apportioned the cost of the financing of the Fees and Improvements to each
parcel of land in the Districts in proportion to the estimated benefits to be received by each parcel, respectively, from the
financing of the Fees and Improvements. This Commission hereby confirms and levies each individual Assessment as
stated in the Final Engineer’s Reports.
Section 6. This Commission hereby orders the financing of the Fees and Improvements as detailed in
the Final Engineer’s Reports.
Section 7. Bonds representing unpaid Assessments, and bearing interest at a rate not to exceed twelve
percent (12%) per annum, will be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10,
commencing with Section 8500, of the Streets and Highways Code of the State of California) (the “1915 Act”), and the
last installment of the bonds shall mature not later than twenty-nine (29) years from the second day of September next
succeeding twelve (12) months from their date.
Section 8. This Commission hereby finds and determines that either each of the owners or an authorized
representative of each of the owners of each of the parcels assessed in these proceedings has executed and filed with the
Program Administrator a form of Consent and Waiver by which the entitlement otherwise given to each such owner to
pay all or any part of the subject Assessment or Assessments in cash within the 30-day cash payment period has been
waived, and by which the property owner consents to the changes to the Engineer’s Report between the preliminary
approval thereof on _______, 20__ and the approval of the Final Engineer’s Reports by this Resolution. Accordingly,
this Commission hereby confirms that the amount of unpaid Assessments is equal to the full amount of the Assessments
levied and directs the Program Administrator to proceed forthwith, without the necessity of the 30-day cash payment
period otherwise required, to provide for the issuance, sale and delivery of limited obligation improvement bonds in a
principal amount equal to the Assessments levied.
Section 9. The Program Administrator is hereby authorized and directed to prepare the auditors record
for each of the Districts, pursuant to the Streets and Highways Code, and to transmit said auditors record to the County
Auditor of the County within which the applicable District is located. The assessment installments for the initial series of
bonds issued for the Districts shall be apportioned among the parcels in each District having an unpaid Assessment.
Section 10. The Program Administrator is hereby directed to record the Final Engineer’s Report with the
Authority. The Program Administrator is hereby further directed to record the assessment diagrams contained in the Final
Engineer’s Reports and notices of assessment in the office of the County Recorders of the Counties within which the
Districts are located and to publish notices of assessment in appropriate newspapers of general circulation in such
Counties, all in the time, form and manner as required by law.
Section 11. This Resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED by the California Statewide Communities Development Authority this _______,
20__.
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EXHIBIT A
District Name (County) Assessment/Local
Obligation Amount
1.
2. [List Separate Assessment Districts] [Amount]
3.
4.
5.
6.
7.
8.
9.
10.
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APPENDIX E
Form of Local Obligation Resolution
RESOLUTION NO. ______
RESOLUTION OF THE COMMISSION OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY PROVIDING FOR THE
ISSUANCE OF ____ SEPARATE SERIES OF STATEWIDE COMMUNITY
INFRASTRUCTURE PROGRAM LIMITED OBLIGATION IMPROVEMENT
BONDS; APPROVING THE FORM AND SUBSTANCE OF A TRUST
AGREEMENT AND AUTHORIZING CHANGES THERETO AND
EXECUTION THEREOF; AND AUTHORIZING RELATED ACTIONS AND
THE EXECUTION OF RELATED DOCUMENTS TO IMPLEMENT THE
PROPOSED FINANCING PROGRAM
WHEREAS, the California Statewide Communities Development Authority is a joint exercise of
powers entity duly organized and existing under and by virtue of the laws of the State of California (the
“Authority”), with this Commission (this “Commission”) serving as the legislative body of the Authority; and
WHEREAS, this Commission, on ______, 20__, adopted its Resolutions of Intention (the
“Resolutions of Intention”) relating to the financing of certain development impact fees and public capital
improvements in ____ assessment districts (collectively, the “Districts”) designated by the names set forth in
Exhibit A attached hereto and by this reference incorporated herein; and
WHEREAS, the Resolutions of Intention were adopted pursuant to the provisions of the Municipal
Improvement Act of 1913 (Division 12, commencing with Section 10000 of the Streets and Highways Code of
the State of California) (the “1913 Act”) and provided that serial and/or term bonds to represent unpaid
assessments (the “Assessments”) would be issued in the manner provided by the Improvement Bond Act of
1915 (Division 10, commencing with Section 8500, of the Streets and Highways Code of the State of California)
(the “1915 Act”), reference being hereby made to the Resolutions of Intention for further particulars of such
bonds; and
WHEREAS, the written engineer’s reports relating to the proposed Districts (in their final form, the
“Engineer’s Reports”) were thereafter duly prepared and filed with the Authority, and after a hearing duly noticed
and held, the Assessments have been confirmed, levied and approved by resolution adopted by this Commission
on the date hereof; and
WHEREAS, the assessment diagrams and related notices of assessment have been authorized to be
duly recorded in the office of the Secretary of the Authority, who is authorized to act as Superintendent of Streets
with respect to the Districts, and the assessment diagrams and related notices of assessment shall be recorded in
the offices of the County Recorders of the Counties in which the Districts are located, all in the time, form and
manner required by law; and
WHEREAS, the Assessments have been levied in the total amount set forth in Exhibit A to this
Resolution upon the several subdivisions of land in the Districts in proportion to the estimated benefits to be
received by such subdivisions, respectively, from the payment of certain development impact fees and the
provision of certain public capital improvements, as shown in the Engineer’s Reports; and
WHEREAS, notices of the levy and recording of the Assessments have been authorized to be duly
given by publication in the time, form and manner required by law, and the owners of all of the property which
has been assessed in the Districts or the authorized representatives of such owners have executed and filed
Consent and Waiver forms, by which, among other things, such owners have waived their rights to pay all or any
part of their respective Assessments in cash and have further waived mailed notice of the Assessments; and
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WHEREAS, on the basis of the executed Consent and Waiver forms on file with the Authority, in
which each owner of each parcel on which an Assessment is proposed to be levied has waived the entitlement
to pay all or any portion of such Assessment levied upon the such parcel in cash (which entails the benefit of a
cash payment discount) prior to the issuance, sale and delivery of bonds upon the security of such Assessment,
the Authority has confirmed that the amount of unpaid Assessments is equal to the full amount of Assessments
levied, as set forth in Exhibit A to this Resolution, and this Commission hereby finds and determines that the
total of unpaid Assessments for each of the Districts is as set forth in Exhibit A to this Resolution; and
WHEREAS, in connection with the financing of development impact fees and public capital
improvements pursuant to the Authority’s Statewide Community Infrastructure Program (the “Program”), this
Commission has determined to issue ___ separate series of its Statewide Community Infrastructure Program
Limited Obligation Improvement Bonds, with one of the separate series relating to each of the Districts (the
“Local Obligations”), pursuant to a Trust Agreement in substantially the form currently on file with this
Commission (the “Trust Agreement”), dated as of ______, 20__, by and between the Authority and Wells Fargo
Bank, National Association (the “Trustee”), such Local Obligations to be registered in the name of the Trustee
and each series thereof to be issued in an aggregate principal amount equal to the principal amount of unpaid
Assessments of the applicable District; and
WHEREAS, for the purpose of funding the Local Obligations and thereby financing the development
impact fees and public capital improvements in the Districts as described above, this Commission has determined
to authorize and issue its Statewide Community Infrastructure Program Revenue Bonds, Series _____ (the
“Revenue Bonds”) pursuant to the same Trust Agreement; and
WHEREAS, the Authority has authorized the issuance of and sale of the Revenue Bonds to RBC
Capital Markets, as underwriter (the “Underwriter”), with the net proceeds of sale thereof (after funding a reserve
fund and payment of costs of issuance) to be utilized by the Trustee to acquire the Local Obligations; and
WHEREAS, in furtherance of implementing the issuance of the Local Obligations as described above,
there has been filed with the Secretary of the Authority, for consideration and approval by this Commission, the
form of the Trust Agreement, under the terms of which, among other things, the Local Obligations are to be
issued; and
WHEREAS, being fully advised in the matter of the Program, this Commission wishes to approve the
financing as described above;
NOW, THEREFORE, BE IT RESOLVED by the Commission of the California Statewide
Communities Development Authority, as follows:
Section 1. The foregoing recitals are true and correct, and this Commission so finds and determines.
This Resolution is adopted in accordance with the “SCIP Reference Manual” adopted by this Commission, as it
may be amended from time to time.
Section 2. This Commission has reviewed all proceedings heretofore taken relative to the foregoing
and has found, as a result of such review, and does hereby find and determine that all acts, conditions and things
required by law to exist, to happen and to be performed precedent to and in the issuance of the Local Obligations
as hereinafter authorized and provided do exist, have happened and have been performed in due time, form and
manner as required by law, and the Authority is now authorized pursuant to each and every requirement of law
to issue the Local Obligations.
Section 3. A separate series of Local Obligations shall be issued for each District as provided in the
Trust Agreement and shall represent and shall be secured by the unpaid Assessments of each such District in
accordance with the provisions of the 1915 Act and pursuant to the provisions of the Resolutions of Intention
and proceedings taken thereunder. Each series of the Local Obligations shall be issued in an aggregate principal
amount equal to the unpaid Assessments as set forth in Exhibit A to this Resolution, shall bear interest at rates
not to exceed 12%, and shall be known as the “California Statewide Communities Development Authority
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Statewide Community Infrastructure Program Limited Obligation Improvement Bonds,” with appropriate series
and sub-series designations as determined by the Authority.
Section 4. The proposed form of the Trust Agreement, as presented to this meeting, is hereby
approved. Any member of this Commission or their administrative delegatees duly authorized pursuant to [active
delegation resolution] is hereby authorized and directed, for and on behalf of the Authority, to execute and deliver
the Trust Agreement in substantially said form, with such changes and insertions therein as any member of the
Commission, with the advice of counsel to the Authority, may approve, such approval to be conclusively
evidenced by the execution and delivery thereof.
Section 5. The Chair of the Authority is hereby authorized and directed to execute each of the Local
Obligations on behalf of the Authority, and the Secretary is hereby authorized and directed to countersign each
of the Local Obligations, manually or by use of engraved, printed or lithographed facsimile signatures. Such
signing as herein provided shall be a sufficient and binding execution of the Local Obligations by the Authority,
without the necessity of a seal. In case any officer whose signature appears on the Local Obligations shall cease
to be such officer before the delivery of the Local Obligations to the purchaser, such signature shall nevertheless
be valid and sufficient for all purposes the same as though the officer had remained such officer of the Authority
until the delivery of the Local Obligations. Only such of the Local Obligations as shall bear thereon a certificate
of registration and authentication in the form set forth in the Trust Agreement, executed and dated by any
Authorized Signatory, shall be entitled to any benefits thereunder or be valid or obligatory for any purpose, and
such certificate shall be conclusive evidence that the Local Obligations so authenticated have been duly
authorized, executed, issued and delivered thereunder and are entitled to the benefits thereof.
Section 6. Any Authorized Signatory and other appropriate officers and agents of the Authority are
hereby authorized and directed, jointly and severally, for and in the name and on behalf of the Authority, to
execute and deliver any and all documents, and to do any and all things and take any and all actions which may
be necessary or advisable, in their discretion, to effectuate the actions which the Authority has approved in this
Resolution and to consummate by the Authority the transactions contemplated by the documents approved
hereby, including any subsequent amendments, waivers or consents entered into or given in accordance with
such documents.
Section 7. This Resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED by the California Statewide Communities Development Authority this
______, 20__.
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EXHIBIT A
District Name (County) Local Obligation Amount
1.
2.
3. [List of Individual Assessment Districts] [Amount]
4.
5.
6.
7.
8
9.
10.
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APPENDIX F
Form of Revenue Bond Resolution
RESOLUTION NO. ______
A RESOLUTION OF THE COMMISSION OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY AUTHORIZING THE ISSUANCE,
SALE AND DELIVERY OF NOT TO EXCEED $___________ OF ITS STATEWIDE
COMMUNITY INFRASTRUCTURE PROGRAM REVENUE BONDS, SERIES ______;
APPROVING THE FORMS OF A TRUST AGREEMENT, A BOND PURCHASE
AGREEMENT, AND A CONTINUING DISCLOSURE AGREEMENT, AUTHORIZING
CHANGES THERETO AND EXECUTION AND DELIVERY THEREOF AS MODIFIED;
APPROVING A PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING
CHANGES THERETO AND DELIVERY THEREOF AS MODIFIED; AUTHORIZING
THE PREPARATION OF A FINAL OFFICIAL STATEMENT SUBSTANTIALLY
DERIVED FROM THE PRELIMINARY OFFICIAL STATEMENT AND EXECUTION
AND DELIVERY THEREOF; AND AUTHORIZING CERTAIN OTHER ACTIONS IN
CONNECTION WITH THE ISSUANCE, SALE AND DELIVERY OF SUCH BONDS
AND IMPLEMENTATION OF THE RELATED FINANCING PROGRAM
WHEREAS, the California Statewide Communities Development Authority is a joint exercise of powers entity
duly organized and existing under and by virtue of the laws of the State of California (the “Authority”), with this
Commission (this “Commission”) serving as the legislative body of the Authority; and
WHEREAS, this Commission has completed its legal proceedings under the Municipal Improvement Act of
1913 (Division 12, commencing with Section 10000 of the Streets and Highways Code of the State of California) (the
“1913 Act”) in connection with the formation of ___ assessment districts identified in said proceedings (the “Districts”);
and
WHEREAS, this Commission is empowered under the provisions of the Improvement Bond Act of 1915
(Division 10, commencing with Section 8500, of the Streets and Highways Code of the State of California) (the “1915
Act”) to undertake legal proceedings for the issuance, sale and delivery of limited obligation improvement bonds (the
“Local Obligations”) upon the security of the recorded and unpaid assessments (the “Assessments”) of the Districts; and
WHEREAS, this Commission is empowered under the provisions of Article 4, Chapter 5, Division 7, Title 1 of
the California Government Code (the “Law”) to issue bonds of the Authority for the purpose of acquiring certain local
obligations issued by the Authority, including the Local Obligations; and
WHEREAS, this Commission has determined to issue ___ separate series of Local Obligations, one series for
each Assessment District (collectively, the “Local Obligations”), to be issued pursuant to that certain Trust Agreement,
dated as of ______, 20__ (the “Trust Agreement”) between the Authority and Wells Fargo Bank, National Association,
as Trustee (the “Trustee”), to be registered in the name of the Trustee and to bear such series designations as set forth in
the Trust Agreement, which Local Obligations will fund the payment of certain development impact fees (the “Fees”),
which will in turn fund public capital improvements, as well as the direct acquisition of certain public improvements (the
“Improvements”); and
WHEREAS, by this Resolution, this Commission wishes to authorize and undertake the issuance of the
Authority’s Statewide Community Infrastructure Program Revenue Bonds, Series _____ (the “Bonds”), to acquire the
Local Obligations, to fund a reserve fund and to pay costs of issuance (the “Financing Program”); and
WHEREAS, this Commission has determined that the estimated amount necessary to acquire the Local
Obligations, to fund a reserve fund and to pay costs of issuance will require the issuance of the Bonds in the aggregate
principal amount not to exceed $_________; and
WHEREAS, this Commission has determined that all things necessary to make the Bonds, when authenticated
by the Trustee and issued as provided in the Trust Agreement, the valid, binding and legal obligations of the Authority
according to the import thereof and hereof have been done and performed; and
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WHEREAS, in furtherance of implementing the financing described above, there have been filed with the
Secretary of the Authority and submitted to this Commission for consideration and approval at this meeting, forms of the
following:
(a) the Trust Agreement, described above;
(b) a Bond Purchase Agreement, under the terms of which, among other things, the Authority
agrees to sell and RBC Capital Markets, the underwriter (the “Underwriter”), agrees to
purchase the Bonds;
(c) a Preliminary Official Statement, describing the Bonds and the Local Obligations; and
(d) a Continuing Disclosure Agreement, under the terms of which, among other things, the
Authority agrees and covenants to provide certain annual financial information and notice of
material events to assist the Underwriter in complying with Rule 15c2-12 of the Securities and
Exchange Commission; and
WHEREAS, being fully advised in the matter of the financing, this Commission wishes to proceed with
implementation of the Financing Program; and
WHEREAS, all acts, conditions and things required by the Constitution and laws of the State of California to
exist, to have happened and to have been performed precedent to and in connection with the consummation of the
Financing Program do exist, have happened and have been performed in regular and due time, form and manner as
required by law, and the Authority is now duly authorized and empowered, pursuant to each and every requirement of
law, to authorize the execution and delivery of certain documents in order to further implement the Financing Program
in the manner and upon the terms herein provided; and
WHEREAS, the requisite local agencies with jurisdiction over the areas encompassed by the Assessment
Districts have determined that the issuance of the Bonds by the Authority and the acquisition of the Local Obligations
will result in significant public benefits, including demonstrable savings in effective interest rate, bond preparation, bond
underwriting and bond issuance costs;
NOW, THEREFORE, BE IT RESOLVED by the Commission of the California Statewide Communities
Development Authority as follows:
Section 1. The foregoing recitals are true and correct, and this Commission so finds and determines.
Section 2. Pursuant to the Law, the Bonds shall be issued in the aggregate principal amount of not to exceed
$________; provided, however, that (a) the true interest cost on the Bonds shall not exceed ___%, and (b) the maximum
term of any maturity shall not extend beyond the year 20__.
Section 3. The proposed form of the Trust Agreement is hereby approved. Any member of the Commission
or their administrative delegatees duly authorized pursuant to [active delegation resolution] is hereby authorized and
directed, for and on behalf of the Authority, to execute and deliver the Trust Agreement in substantially said form, with
such changes and insertions therein as any member of the Commission, with the advice of counsel to the Authority, may
approve, such approval to be conclusively evidenced by the execution and delivery thereof.
Section 4. The proposed form of the Bond Purchase Agreement is hereby approved. Any Authorized
Signatory is hereby authorized and directed, for and on behalf of the Authority, to execute and deliver the Bond Purchase
Agreement in substantially said form, with such changes and insertions therein as any member of the Commission, with
the advice of counsel to the Authority, may approve, such approval to be conclusively evidenced by the execution and
delivery thereof.
Section 5. The proposed form of the Continuing Disclosure Agreement is hereby approved. Any Authorized
Signatory is hereby authorized and directed, for and on behalf of the Authority, to execute and deliver the Continuing
Disclosure Agreement in substantially said form, with such changes and insertions therein as any member of the
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Commission, with the advice of counsel to the Authority, may approve, such approval to be conclusively evidenced by the
execution and delivery thereof.
Section 6. (a) The proposed form of the Preliminary Official Statement is hereby approved. Any Authorized
Signatory is hereby authorized and directed, for and on behalf of the Authority, to execute and deliver the final Official
Statement to be derived therefrom.
(b) Any Authorized Signatory is hereby authorized and directed, for and on behalf of the Authority, to find
and determine that said Preliminary Official Statement in preliminary form is, and as of its date shall be, deemed “final”
for purpose of Rule 15c2-12 of the Securities and Exchange Commission, and any Authorized Signatory is hereby
authorized and directed, for and on behalf of the Authority, to execute a certificate to such effect in the customary form.
(c) Any Authorized Signatory is hereby authorized and directed, for and on behalf of the Authority, in
consultation with Disclosure Counsel, to approve corrections and additions to the Preliminary Official Statement by
supplement or amendment thereto, by appropriate insertions, or otherwise as appropriate, provided that such corrections
or additions shall be regarded by such Member as necessary to cause the information contained therein to conform to
facts material to the Bonds or to the Local Obligations or to the proceedings of this Commission or that such corrections
or additions are in form rather than in substance.
(d) The Underwriter is authorized to distribute the Preliminary Official Statement and the final Official
Statement to be derived therefrom in connection with the sale and delivery of the Bonds.
Section 7. Any Authorized Signatory and other appropriate officers and agents of the Authority are hereby
authorized and directed, jointly and severally, for and in the name and on behalf of the Authority, to execute and deliver
any and all documents, and to do any and all things and take any and all actions which may be necessary or advisable, in
their discretion, to effectuate the actions which the Authority has approved in this Resolution and to consummate by the
Authority the transactions contemplated by the documents approved hereby, including any subsequent amendments,
waivers or consents entered into or given in accordance with such documents.
Section 8. This Resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED by the California Statewide Communities Development Authority this _____,
20__.
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APPENDIX G -1
Form of SCIP Resolution
RESOLUTION NO. ________
RESOLUTION OF THE [CITY COUNCIL/BOARD OF SUPERVISORS] OF THE
_________ AUTHORIZING THE _________ TO JOIN THE STATEWIDE COMMUNITY
INFRASTRUCTURE PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM
PROPERTY OWNERS, CONDUCT SPECIAL ASSESSMENT PROCEEDINGS AND
LEVY ASSESSMENTS WITHIN THE TERRITORY OF THE ____________; APPROVING
FORM OF ACQUISITION AGREEMENT FOR USE WHEN APPLICABLE; AND
AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the “Authority”) is a joint exercise
of powers authority the members of which include numerous cities and counties in the State of California, including the
____________ [the “City”/”County”]; and
WHEREAS, the Authority has established the Statewide Community Infrastructure Program (“SCIP”) to allow
the financing of certain development impact fees (the “Fees”) levied in accordance with the Mitigation Fee Act (California
Government Code Sections 66000 and following) and other authority providing for the levy of fees on new development
to pay for public capital improvements (collectively, the “Fee Act”) through the levy of special assessments pursuant to
the Municipal Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following) (the “1913 Act”) and
the issuance of improvement bonds (the “Local Obligations”) under the Improvement Bond Act of 1915 (Streets and
Highways Code Sections 8500 and following) (the “1915 Act”) upon the security of the unpaid special assessments; and
WHEREAS, SCIP will also allow the financing of certain public capital improvements to be constructed by or
on behalf of property owners for acquisition by the ______ or another public agency (the “Improvements”); and
WHEREAS, the ______ desires to allow the owners of property being developed within its jurisdiction
(“Participating Developers”) to participate in SCIP and to allow the Authority to conduct assessment proceedings under
the 1913 Act and to issue Local Obligations under the 1915 Act to finance Fees levied on such properties and
Improvements, provided that such Participating Developers voluntarily agree to participate and consent to the levy of
such assessments; and
WHEREAS, in each year in which eligible property owners within the jurisdiction of the ______ elect to be
Participating Developers, the Authority will conduct assessment proceedings under the 1913 Act and issue Local
Obligations under the 1915 Act to finance Fees payable by such property owners and Improvements and, at the conclusion
of such proceedings, will levy special assessments on such property within the territory of the ______;
WHEREAS, there has been presented to this meeting a proposed form of Resolution of Intention to be adopted
by the Authority in connection with such assessment proceedings (the “ROI”), a copy of which is attached hereto as
Exhibit A, and the territory within which assessments may be levied for SCIP (provided that each Participating Developer
consents to such assessment) shall be coterminous with the ________’s official boundaries of record at the time of
adoption of each such ROI (the “Proposed Boundaries”), and reference is hereby made to such boundaries for the plat or
map required to be included in this Resolution pursuant to Section 10104 of the Streets and Highways Code; and
WHEREAS, there has also been presented to this meeting a proposed form of Acquisition Agreement (the
“Acquisition Agreement”), a copy of which is attached hereto as Exhibit B, to be approved as to form for use with respect
to any Improvements to be constructed and installed by a Participating Developer and for which the Participating
Developer requests acquisition financing as part of its SCIP application; and
WHEREAS, the _______ will not be responsible for the conduct of any assessment proceedings; the levy or
collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the
issuance, sale or administration of the Local Obligations or any other bonds issued in connection with SCIP; and
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WHEREAS, pursuant to Government Code Section 6586.5, notice was published at least five days prior to the
adoption of this resolution at a public hearing, which was duly conducted by this [Council/Board] concerning the
significant public benefits of SCIP and the financing of the Improvements and the public capital improvements to be paid
for with the proceeds of the Fees;
NOW, THEREFORE, BE IT RESOLVED by the [City Council/Board of Supervisors] of the
_____________ as follows:
Section 1. The _____ hereby consents to the conduct of special assessment proceedings by the Authority in
connection with SCIP pursuant to the 1913 Act and the issuance of Local Obligations under the 1915 Act on any property
within the Proposed Boundaries; provided, that
(1) Such proceedings are conducted pursuant to one or more Resolutions of Intention in substantially the form
of the ROI; and
(2) The Participating Developers, who shall be the legal owners of such property, execute a written consent to
the levy of assessment in connection with SCIP by the Authority and execute an assessment ballot in favor of such
assessment in compliance with the requirements of Section 4 of Article XIIID of the State Constitution.
Section 2. The ______ hereby finds and declares that the issuance of bonds by the Authority in connection with
SCIP will provide significant public benefits, including without limitation, savings in effective interest rate, bond
preparation, bond underwriting and bond issuance costs and the more efficient delivery of local agency services to
residential and commercial development within the ______.
Section 3. The Authority has prepared and will update from time to time the “SCIP Manual of Procedures” (the
“Manual”), and the _____ will handle Fee revenues and funds for Improvements for properties participating in SCIP in
accordance with the procedures set forth in the Manual.
Section 4. The form of Acquisition Agreement presented to this meeting is hereby approved, and the
[Mayor/Board Chair] is authorized to execute and the [City Clerk/Clerk of the Board] is authorized to attest the execution
of a completed Acquisition Agreement in substantially said form and pertaining to the Improvements being financed on
behalf of the applicable Participating Developer.
Section 5. The appropriate officials and staff of the ______ are hereby authorized and directed to make SCIP
applications available to all property owners who are subject to Fees for new development within the _____ and/or who
are conditioned to install Improvements and to inform such owners of their option to participate in SCIP; provided, that
the Authority shall be responsible for providing such applications and related materials at its own expense. The staff
persons listed on the attached Exhibit C, together with any other staff persons chosen by the [City Manager/County
Administrator] from time to time, are hereby designated as the contact persons for the Authority in connection with the
SCIP program.
Section 6. The appropriate officials and staff of the _____ are hereby authorized and directed to execute and
deliver such closing certificates, requisitions, agreements and related documents, including but not limited to such
documents as may be required by Bond Counsel in connection with the participation in SCIP of any districts, authorities
or other third-party entities entitled to own Improvements and/or to levy and collect fees on new development to pay for
public capital improvements within the jurisdiction of the ______, as are reasonably required by the Authority in
accordance with the Manual to implement SCIP for Participating Developers and to evidence compliance with the
requirements of federal and state law in connection with the issuance by the Authority of the Local Obligations and any
other bonds for SCIP. To that end, and pursuant to Treasury Regulations Section 1.150-2, the staff persons listed on
Exhibit C, or other staff person acting in the same capacity for the _____ with respect to SCIP, are hereby authorized and
designated to declare the official intent of the _____ with respect to the public capital improvements to be paid or
reimbursed through participation in SCIP.
Section 7. This Resolution shall take effect immediately upon its adoption. The [City Clerk/Clerk of the Board]
is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of the Authority.
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* * *
PASSED AND ADOPTED this ____ day of ____________, 20__ by the following vote, to wit:
AYES: Council/Board Members ______________________________
NOES: Council/Board Members ______________________________
ABSENT: Council/Board Members ______________________________
ABSTAIN: Council/Board Members ______________________________
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EXHIBIT A TO FORM OF SCIP RESOLUTION
FORM OF RESOLUTION OF INTENTION
TO BE ADOPTED BY CSCDA
(SEE APPENDIX I)
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EXHIBIT B TO FORM OF SCIP RESOLUTION
FORM OF ACQUISITION AGREEMENT
_____________________
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ACQUISITION AGREEMENT
BY AND BETWEEN
_______________________
AND
[DEVELOPER]
Dated as of _______, 20__
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ACQUISITION AGREEMENT
Recitals
A. The parties to this Acquisition Agreement (the “Agreement”) are the ______________, (the “Local
Agency”), and [DEVELOPER], a [here indicate type of legal entity] (the “Developer”).
B. The effective date of this Agreement is ________, 20__.
C. The Developer has applied for financing of certain public capital improvements (the “Acquisition
Improvements”) and capital facilities fees though the Statewide Community Infrastructure Program (“SCIP”) administered
by the California Statewide Communities Development Authority (the “Authority”) and such application has been
approved by the Local Agency.
D. The administration, payment and reimbursement of the capital facilities fees is agreed to be governed
by the provisions of the SCIP Manual of Procedures as it may be amended from time to time. The administration, payment
and reimbursement of the Acquisition Improvements shall be as provided herein.
E. Under SCIP, the Authority intends to issue bonds to fund, among other things, all or a portion of the
costs of the Acquisition Improvements, and the portion of the proceeds of such bonds allocable to the cost of the
Acquisition Improvements to be constructed and installed by the Developer, together with interest earned thereon prior
to such acquisition, is referred to herein as the “Available Amount”.
F. SCIP will provide financing for the acquisition by the Local Agency of the Acquisition Improvements
and the payment of the Acquisition Price (as defined herein) of the Acquisition Improvements from the Available Amount.
Attached hereto as Exhibit A are descriptions of the Acquisition Improvements, which descriptions are subject to
modification by written amendment of this Agreement, subject to the approval of the Authority.
G. The parties anticipate that, upon completion of the Acquisition Improvements and subject to the terms
and conditions of this Agreement, the Local Agency will acquire such completed Acquisition Improvements with the
Available Amount.
H. Any and all monetary obligations of the Local Agency arising out of this Agreement are the special and
limited obligations of the Local Agency payable only from the Available Amount, and no other funds whatsoever of the
Local Agency shall be obligated therefor.
I. In consideration of Recitals A through H, inclusive, and the mutual covenants, undertakings and
obligations set forth below, the Local Agency and the Developer agree as stated below.
Agreement
ARTICLE I
DEFINITIONS; ASSESSMENT DISTRICT FORMATION AND
FINANCING PLAN
Section 1.01. Definitions. As used herein, the following capitalized terms shall have the meanings
ascribed to them below:
“Acceptable Title” means free and clear of all monetary liens, encumbrances, assessments, whether any such item
is recorded or unrecorded, and taxes, except those items which are reasonably determined by the Local Agency Engineer
in his sole discretion not to interfere with the intended use and therefore are not required to be cleared from the title.
“Acquisition Improvements” shall have the meaning assigned to such term in Recital C and are described in
Exhibit A.
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“Acquisition Price” means the amount paid to the Developer upon acquisition of all of the Acquisition
Improvements as provided in Section 2.03.
“Actual Cost” means the cost of construction of all of the Acquisition Improvements, as documented by the
Developer to the satisfaction of the Local Agency, as certified by the Local Agency Engineer in an Actual Cost Certificate.
“Actual Cost Certificate” shall mean a certificate prepared by the Developer detailing the Actual Cost of all of
the Acquisition Improvement to be acquired hereunder, as revised by the Local Agency Engineer pursuant to Section 2.03.
“Agreement” means this Acquisition Agreement, dated as of ______, 20__.
“Assessment District” means the assessment district established by the Authority pursuant to SCIP which
includes the Developer’s property for which the Acquisition Improvements are being funded.
“Authority” means the California Statewide Communities Development Authority.
“Available Amount” means the amount of funds deposited in the Developer Acquisition Account by the
Authority pursuant to SCIP, together with any interest earnings thereon.
“Code” means the Streets and Highways Code of the State of California.
“Developer” means [Developer], a [here indicate type of legal entity].
“[Developer] Acquisition Account” means the account by that name established by the Authority pursuant to
SCIP for the purpose of paying the Acquisition Price of the Acquisition Improvements.
“Local Agency” means the _____________.
“Local Agency Engineer” means the Director of Public Works of the Local Agency (the “Director”) or the
designee of the Director, who will be responsible for administering the acquisition of the Acquisition Improvements
hereunder.
“Project” means the land development program of the Developer pertaining to the Developer’s property in the
Assessment District, including the design and construction of the Acquisition Improvements and the other public and
private improvements to be constructed by the Developer within or adjacent to the Assessment District.
“SCIP” means the Statewide Community Infrastructure Program of the Authority.
“SCIP Requisition” means a requisition for payment of funds from the [Developer] Acquisition Account in
substantially the form attached hereto as Exhibit B.
“SCIP Trust Agreement” means the Trust Agreement entered into by the Authority and the SCIP Trustee in
connection with the financing for the Acquisition Improvements.
“SCIP Trustee” means Wells Fargo Bank, National Association, as trustee under the SCIP Trust Agreement.
“Title Documents” means, for each Acquisition Improvement acquired hereunder, a grant deed or similar
instrument necessary to transfer title to any real property or interests therein (including easements) necessary or convenient
to the operation, maintenance, rehabilitation and improvement by the Local Agency of that Acquisition Improvement
(including, if necessary, easements for ingress and egress) and a Bill of Sale or similar instrument evidencing transfer of
title to that Acquisition Improvement (other than said real property interests) to the Local Agency, where applicable.
Section 1.02. Participation in SCIP . Developer has applied for financing through SCIP of the
Acquisition Improvements and capital facilities fees, and such application has been approved by the Local Agency.
Developer and Local Agency agree that until and unless such financing is completed by the Authority and the Available
Amount is deposited in the Developer Acquisition Account, neither the Developer nor the Local Agency shall have any
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obligations under this agreement. Developer agrees to cooperate with the Local Agency and the Authority in the
completion of the SCIP financing for the Acquisition Improvements.
Section 1.03. Deposit and Use of Available Amount .
(a) Upon completion of the SCIP financing, the Available Amount will be deposited by the Authority
in the [Developer] Acquisition Account.
(b) The Authority will cause the SCIP Trustee to establish and maintain the [Developer] Acquisition
Account for the purpose of holding all funds for the Acquisition Improvements. All earnings on amounts in the
[Developer] Acquisition Account shall remain in the [Developer] Acquisition Account for use as provided herein and
pursuant to SCIP. The amounts in the [Developer] Acquisition Account shall be withdrawn by the Local Agency in
accordance with SCIP procedures upon completion of the Acquisition Improvements within 30 days (or as soon thereafter
as reasonably practicable) of receipt by the Local Agency of the certification of the Local Agency Engineer requi red by
Section 2.03 of this Agreement, and subject to satisfaction of all other conditions precedent to such acquisition pursuant
to Section 2.04 of this Agreement, to pay the Acquisition Price of such completed Acquisition Improvements, as specified
in Article II hereof. Upon completion of all of the Acquisition Improvements and the payment of all costs thereof, any
remaining funds in the [Developer] Acquisition Account (less any amount determined by the Local Agency as necessary
to reserve for claims against such account) (i) shall be applied to pay the costs of any additional improvements or fees
eligible for acquisition with respect to the Project as approved by the Authority and, to the extent not so used, and
thereafter (ii) shall be applied by the Authority as provided in Section 10427.1 of the Code to pay a portion of the
assessments levied on the Project property in the Assessment District.
Section 1.04. No Local Agency Liability; Local Agency Discretion; No Effect on Other
Agreements. In no event shall any actual or alleged act by the Local Agency or any actual or alleged omission or failure to
act by the Local Agency with respect to SCIP subject the Local Agency to monetary liability therefor. Further, nothing in
this Agreement shall be construed as affecting the Developer’s or the Local Agency’s duty to perform their respective
obligations under any other agreements, public improvement standards, land use regulations or subdivision requirements
related to the Project, which obligations are and shall remain independent of the Developer’s and the Local Agency’s rights
and obligations under this Agreement.
ARTICLE II
DESIGN, CONSTRUCTION AND ACQUISITION OF ACQUISITION IMPROVEMENTS
Section 2.01. Letting and Administering Design Contracts. The parties presently anticipate that
the Developer has awarded and administered or will award and administer engineering design contracts for the Acquisition
Improvements to be acquired from Developer. All eligible expenditures of the Developer for design engineering and
related costs in connection with the Acquisition Improvements (whether as an advance to the Local Agency or directly to
the design consultant) shall be reimbursed at the time of acquisition of such Acquisition Improvements. The Developer
shall be entitled to reimbursement for any design costs of the Acquisition Improvements only out of the Acquisition Price
as provided in Section 2.03 and shall not be entitled to any payment for design costs independent of or prior to the
acquisition of Acquisition Improvements.
Section 2.02. Letting and Administration of Construction Contracts. State law requires that all
Acquisition Improvements not completed prior to the adoption of the Authority’s Resolution of Intention shall be
constructed as if they were constructed under the direction and supervision of the Local Agency. The Developer agrees
this requires the payment of prevailing wages as specified by the Labor Code of the State of California. The Developer
agrees to comply with this requirement and to certify such compliance to the Local Agency in its Actual Cost Certificates,
and to comply with any guidelines provided by the Local Agency for letting and administering contracts. The Developer’s
indemnification obligation set forth in Section 3.01 of this Agreement shall also apply to any alleged failure to comply with
the requirements of this Section, and/or applicable State laws regarding public contracting and prevailing wages.
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Section 2.03. Sale of Acquisition Improvements. The Developer agrees to sell to the Local Agency
the Acquisition Improvements to be constructed by Developer (including any rights-of-way or other easements necessary
for the operation and maintenance of the Acquisition Improvements, to the extent not already publicly owned) when such
Acquisition Improvements are completed to the satisfaction of the Local Agency for an amount not to exceed the lesser
of (i) the Available Amount or (ii) the Actual Cost of the Acquisition Improvements. Exhibit A, attached hereto and
incorporated herein, contains a list of each Acquisition Improvement. At the time of completion of each Acquisition
Improvement, the Developer shall deliver to the Local Agency Engineer a written request for acquisition, accompanied
by an Actual Cost Certificate and executed Title Documents for the transfer of the Acquisition Improvement, where
necessary. In the event that the Local Agency Engineer finds that the supporting paperwork submitted by the Developer
fails to demonstrate the required relationship between the subject Actual Cost and the related Acquisition Improvement,
the Local Agency Engineer shall advise the Developer that the determination of the Actual Cost (or the ineligible portion
thereof) has been disallowed and shall request further documentation from the Developer. If such further documentation
is still not adequate, the Local Agency Engineer may revise the Actual Cost Certificate to delete any disallowed items, and
such determination shall be final and conclusive.
In the event that the Actual Cost is in excess of the Available Amount, the Local Agency shall withdraw the
Available Amount from the [Developer] Acquisition Account and transfer said amount to the Developer. In the event
that the Actual Cost is less than the Available Amount, the Local Agency shall withdraw an amount from the [Developer]
Acquisition Account equal to the Actual Cost, and shall transfer said amount to the Developer. Any amounts then
remaining in the [Developer] Acquisition Account shall be applied as provided in Section 1.03.
In no event shall the Local Agency be required to pay the Developer more than the amount on deposit in the
[Developer] Acquisition Account at the time such payment is requested.
Section 2.04. Conditions Precedent to Payment of Acquisition Price. Payment by the Local
Agency to the Developer from the [Developer] Acquisition Account of the Acquisition Price for an Acquisition
Improvement shall be conditioned first upon the determination of the Local Agency Engineer, pursuant to Section 2.03,
that such Acquisition Improvement is all complete and ready for acceptance by the Local Agency, and shall be further
conditioned upon prior satisfaction of the following additional conditions precedent:
(a) The Developer shall have provided the Local Agency with lien releases or other similar
documentation satisfactory to the Local Agency as evidence that the property which is subject to the special assessment
liens of the Assessment District is not subject to any prospective mechanics lien claim respecting the Acquisition
Improvements.
(b) All due and payable property taxes and installments of special assessments shall be current on
property owned by the Developer or under option to the Developer that is subject to the special assessment liens of the
Assessment District.
(c) The Developer shall certify that it is not in default with respect to any loan secured by any interest
in the Project.
(d) The Developer shall have provided the Local Agency with Title Documents needed to provide the
Local Agency with title to the site, right-of-way, or easement upon which the subject Acquisition Improvements are
situated. All such Title Documents shall be in a form acceptable to the Local Agency (or applicable governmental agency)
and shall convey Acceptable Title. The Developer shall provide a policy of title insurance as of the date of transfer in a
form acceptable to the Local Agency Engineer insuring the Local Agency as to the interests acquired in connection with
the acquisition of any interest for which such a policy of title insurance is not required by another agreement between the
Local Agency and the Developer. Each title insurance policy required hereunder shall be in the amount equal to or greater
than the Acquisition Price.
Section 2.05. SCIP Requisition. Upon a determination by the Local Agency Engineer to pay the
Acquisition Price of the Acquisition Improvements pursuant to Section 2.04, the Local Agency Engineer shall cause a
SCIP Requisition to be submitted to the Program Administrator. The Program Administrator will review the SCIP
Requisition and forward it with instructions to the SCIP Trustee and the SCIP Trustee shall make payment directly to
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the Developer of such amount pursuant to the SCIP Trust Agreement. The Local Agency and the Developer
acknowledge and agree that the SCIP Trustee shall make payment strictly in accordance with the SCIP Requisition and
shall not be required to determine whether or not the Acquisition Improvements have been completed or what the
Actual Costs may be with respect to such Acquisition Improvements. The SCIP Trustee shall be entitled to rely on the
SCIP Requisition on its face without any further duty of investigation.
ARTICLE III
MISCELLANEOUS
Section 3.01. Indemnification and Hold Harmless. The Developer hereby assumes the defense of,
and indemnifies and saves harmless the Local Agency, the Authority, and each of its respective officers, directors,
employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to
which they may be subjected or put, by reason of, or resulting from or alleged to have resulted from the acts or omissions
of the Developer or its agents and employees in the performance of this Agreement, or arising out of any contract for the
design, engineering and construction of the Acquisition Improvements or arising out of any alleged misstatements of fact
or alleged omission of a material fact made by the Developer, its officers, directors, employees or agents to the Authority’s
underwriter, financial advisor, appraiser, district engineer or bond counsel or regarding the Developer, its proposed
developments, its property ownership and its contractual arrangements contained in the official statement relating to the
SCIP financing (provided that the Developer shall have been furnished a copy of such official statement and shall not
have objected thereto); and provided, further, that nothing in this Section 3.01 shall limit in any manner the Local Agency’s
rights against any of the Developer’s architects, engineers, contractors or other consultants. Except as set forth in this
Section 3.01, no provision of this Agreement shall in any way limit the extent of the responsibility of the Developer for
payment of damages resulting from the operations of the Developer, its agents and employees. Nothing in this Section
3.01 shall be understood or construed to mean that the Developer agrees to indemnify the Local Agency, the Authority
or any of its respective officers, directors, employees or agents, for any negligent or wrongful acts or omissions to act of
the Local Agency, Authority its officers, employees, agents or any consultants or contractors.
Section 3.02. Audit. The Local Agency shall have the right, during normal business hours and
upon the giving of ten days’ written notice to the Developer, to review all books and records of the Developer pertaining
to costs and expenses incurred by the Developer (for which the Developer seeks reimbursement) in constructing the
Acquisition Improvements.
Section 3.03. Cooperation. The Local Agency and the Developer agree to cooperate with respect
to the completion of the SCIP financing for the Acquisition Improvements. The Local Agency and the Developer agree
to meet in good faith to resolve any differences on future matters which are not specifically covered by this Agreement.
Section 3.04. General Standard of Reasonableness. Any provision of this Agreement which
requires the consent, approval or acceptance of either party hereto or any of their respective employees, officers or agents
shall be deemed to require that such consent, approval or acceptance not be unreasonably withheld or delayed, unless such
provision expressly incorporates a different standard. The foregoing provision shall not apply to provisions in the
Agreement which provide for decisions to be in the sole discretion of the party making the decision.
Section 3.05. Third Party Beneficiaries. The Authority and its officers, employees, agents or any
consultants or contractors are expressly deemed third party beneficiaries of this Agreement with respect to the provisions
of Section 3.01. It is expressly agreed that, except for the Authority with respect to the provisions of Section 3.01, there
are no third party beneficiaries of this Agreement, including without limitation any owners of bonds, any of the Local
Agency’s or the Developer’s contractors for the Acquisition Improvements and any of the Local Agency’s, the Authority’s
or the Developer’s agents and employees.
Section 3.06. Conflict with Other Agreements. Nothing contained herein shall be construed as
releasing the Developer or the Local Agency from any condition of development or requirement imposed by any other
agreement between the Local Agency and the Developer, and, in the event of a conflicting provision, such other agreement
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shall prevail unless such conflicting provision is specifically waived or modified in writing by the Local Agency and the
Developer.
Section 3.07. Notices. All invoices for payment, reports, other communication and notices relating
to this Agreement shall be mailed to:
If to the Local Agency:
Director of Public Works
_________________________
[Address]
If to the Developer:
[Developer]
[Address to Come]
Either party may change its address by giving notice in writing to the other party.
Section 3.08. Severability. If any part of this Agreement is held to be illegal or unenforceable by a
court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably
possible.
Section 3.09. Governing Law. This Agreement and any dispute arising hereunder shall be
governed by and interpreted in accordance with the laws of the State of California.
Section 3.10. Waiver. Failure by a party to insist upon the strict performance of any of the
provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other
party, shall not Constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the
terms of this Agreement.
Section 3.11. Singular and Plural; Gender. As used herein, the singular of any word includes the
plural, and terms in the masculine gender shall include the feminine.
Section 3.12. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original.
Section 3.13. Successors and Assigns. This Agreement is binding upon the heirs, assigns and
successors-in-interest of the parties hereto. The Developer may not assign its rights or obligations hereunder, except to
successors-in-interest to the property within the District, without the prior written consent of the Local Agency.
Section 3.14. Remedies in General. It is acknowledged by the parties that the Local Agency would
not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or the
application thereof, other than for the payment to the Developer of any (i) moneys owing to the Developer hereunder, or
(ii) moneys paid by the Developer pursuant to the provisions hereof which are misappropriated or improperly obtained,
withheld or applied by the Local Agency.
In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any
provision of this Agreement, except that the Local Agency shall not be liable in damages to the Developer, or to any
assignee or transferee of the Developer other than for the payments to the Developer specified in the preceding paragraph.
Subject to the foregoing, the Developer covenants not to sue for or claim any damages for any alleged breach of, or dispute
which arises out of, this Agreement.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written above.
__________________
By
Mayor/Board Chair
ATTEST:
City Clerk/Clerk of the Board
By ________________________________________
[DEVELOPER],
a [here indicate type of legal entity]
By
(Signature)
(Print Name)
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Exhibit A to Acquisition Agreement
DESCRIPTION OF ACQUISITION IMPROVEMENTS AND BUDGETED AMOUNTS
ACQUISITION IMPROVEMENTS
1.
2.
3.
4.
BUDGETED AMOUNTS
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Exhibit B to Acquisition Agreement
FORM OF SCIP REQUISITION
To: BLX Group LLC
SCIP Program Administrator
777 S. Figueroa St., Suite 3200
Los Angeles, California 90017
Attention: Daniel Chang
Fax: 213-612-2499
Re: Statewide Community Infrastructure Program
The undersigned, a duly authorized officer of the ______________ hereby requests a withdrawal from the
[DEVELOPER] ACQUISITION ACCOUNT, as follows:
Request Date: [Insert Date of Request]
Name of Developer: [Developer]
Withdrawal Amount: [Insert Acquisition Price]
Acquisition Improvements: [Insert Description of Acquisition Improvement(s) from Ex. A]
Payment Instructions: [Insert Wire Instructions or Payment Address for Developer]
The undersigned hereby certifies as follows:
1. The Withdrawal is being made in accordance with a permitted use of such monies pursuant to the Acquisition
Agreement, and the Withdrawal is not being made for the purpose of reinvestment.
2. None of the items for which payment is requested have been reimbursed previously from other sources of
funds.
3. If the Withdrawal Amount is greater than the funds held in the [Developer] Acquisition Account, the SCIP
Program Administrator is authorized to amend the amount requested to be equal to the amount of such funds.
4. To the extent the Withdrawal is being made prior to the date bonds have been issued on behalf of SCIP, this
withdrawal form serves as the declaration of official intent of the ________________, pursuant to Treasury Regulations
1.150-2, to reimburse with respect expenditures made from the Developer Acquisition Account listed above in the
amount listed above.
________________________
By :
Title:
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EXHIBIT C TO FORM OF SCIP RESOLUTION
______________________ CONTACTS FOR SCIP PROGRAM
Primary Contact
Name:
Title:
Mailing Address:
Delivery Address (if different):
E-mail:
Telephone:
Fax:
Secondary Contact
Name:
Title:
Mailing Address:
Delivery Address (if different):
E-mail:
Telephone:
Fax:
[Add additional contacts as needed]
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APPENDIX G-2
Sample Staff Report
Resolution to Join SCIP
Note to Staff: The following is suggested language for use in a staff report to accompany the SCIP Resolution. Of course this is only a
suggestion and you should feel free to edit as you see fit. This action requires a public hearing with notice published once in your regular official
notice newspaper at least 5 days prior to the hearing. If you need assistance with this Notice, or if you would like SCIP to review your staff
report, final resolution or agenda item, feel free to contact us and we will be happy to help.
Description: This item includes a brief staff presentation regarding participation in the Statewide Community
Infrastructure Program (“SCIP”), which is sponsored by the California Statewide Communities Development Authority
(“CSCDA”), followed by [Council/Board] discussion, a public hearing to take public testimony on SCIP and bonds to be
issued by the CSCDA, and consideration of a resolution making certain findings and authorizing certain matters necessary
to participate in SCIP.
Background: CSCDA is a joint powers authority sponsored by the League of California Cities and the California State
Association of Counties. The member agencies of CSCDA include approximately 367 cities, 56 counties, one city and
county, and 86 other local agencies throughout California, including the [City of __________/County of__________]
(the “[City/County]”).
SCIP was instituted by CSCDA in 2002 to allow owners of property in participating cities and counties to finance the
development impact fees that would be payable by property owners upon receiving development entitlements or building
permits. The program has since been expanded to include financing of public capital improvements directly. If a property
owner chooses to participate, the selected public capital improvements and the development impact fees owed to the
[City/County] will be financed by the issuance of tax-exempt bonds by CSCDA. CSCDA will impose a special assessment
on the owner’s property to repay the portion of the bonds issued to finance the fees paid with respect to the property and
the public capital improvements benefiting the property. With respect to impact fees, the property owner will either pay
the impact fees at the time of permit issuance, and will be reimbursed from the SCIP bond proceeds when the SCIP bonds
are issued; or the fees will be funded directly from the proceeds of the SCIP bonds. In the former case, the [City/County]
is required to pay the fees over to SCIP, and in the latter case, SCIP holds the bond proceeds representing the fees. In
both cases the fees are subject to requisition by the [City/County] at any time to make authorized fee expenditures. But by
holding and investing the money until it is spent, SCIP is able to monitor the investment earnings (which come to the
[City/County]) for federal tax law arbitrage purposes. SCIP encourages the [City/County] to spend those amounts before
any other fee revenues of the [City/County]. If the fees are paid by the property owner and bonds are never issued, the
fees are returned to the [City/County] by SCIP. In this way, the [City/County] is never at risk for the receipt of the impact
fees.
The benefits to the property owner include:
• Only property owners who choose to participate in the program will have assessments imposed on their property.
• Instead of paying cash for public capital improvements and/or development impact fees, the property owner receives
low-cost, long-term tax-exempt financing of those fees, freeing up capital for other purposes.
• The property owner can choose to pay off the special assessments at any time.
• For home buyers, paying for the costs of public infrastructure through a special assessment is superior to having those
costs “rolled” into the cost of the home. Although the tax bill is higher, the amount of the mortgage is smaller,
making it easier to qualify. Moreover, because the special assessment financing is at tax-exempt rates, it typically
comes at lower cost than mortgage rates.
• Owners of smaller projects, both residential and commercial, can have access to tax-exempt financing of
infrastructure. Before the inception of SCIP, only projects large enough to justify the formation of an assessment or
communities facilities district had access to tax-exempt financing.
The benefits to the [City/County] include:
• As in conventional assessment financing, the [City/County] is not liable to repay the bonds issued by CSCDA or the
assessments imposed on the participating properties.
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• CSCDA handles all district formation, district administration, bond issuance and bond administration functions. A
participating [city/county] can provide tax-exempt financing to property owners through SCIP while committing
virtually no staff time to administer the program.
• Providing tax-exempt financing helps participating cities and counties cushion the impact of rising public capital
improvement costs and development impact fees on property owners.
• The availability of financing will encourage developers to pull permits and pay fees in larger blocks, giving the
participating [city/county] immediate access to revenues for public infrastructure, rather than receiving a trickle of
revenues stretched out over time. As part of the entitlement negotiation process, the possibility of tax-exempt
financing of fees can be used to encourage a developer to pay fees up front.
• In some cases, the special assessments on successful projects can be refinanced through refunding bonds. Savings
achieved through refinancing will be directed back to the participating [city/county] for use on public infrastructure,
subject to applicable federal tax limitations.
The proposed resolution authorizes CSCDA to accept applications from owners of property within our planning
jurisdiction to apply for tax-exempt financing of public capital improvements and development impact fees through SCIP.
It also authorizes CSCDA to form assessment districts within our [City’s/County’s] boundaries, conduct assessment
proceedings and levy assessments against the property of participating owners. It approves the form of an Acquisition
Agreement, attached to the resolution as Exhibit B, to be entered into between the [City/County] and the participating
property owner/developer, if applicable, to provide the terms and conditions under which financing for public capital
improvements will be provided and to establish the procedure for disbursement of bond proceeds to pay for completed
facilities. It also authorizes miscellaneous related actions and makes certain findings and determinations required by law.
Attached to the resolution as Exhibit A is a “Form of Resolution of Intention to be Adopted by CSCDA”. This is for
informational purposes and does not require action by this Council.
Recommended Action: After Council discussion and questions, open the public hearing to order and invite any interested
members of the public to provide testimony regarding SCIP and the proposed action. Upon the close of the hearing, if
the [Council/Board] wishes to join SCIP and become a participating member agency in this program, it should adopt the
proposed resolution. The resolution requires only a simple majority vote. If the resolution is approved, the Clerk should
forward a certified copy to SCIP, c/o Christina King, Orrick, Herrington & Sutcliffe LLP, 405 Howard St., San Francisco,
CA 94105.
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APPENDIX G-3
Form of Notice of Public Hearing
[Instructions to Staff: a completed notice in this format (but with all blanks filled in and bracketed language deleted) must be published
once in a newspaper of general circulation, at least 5 calendar days prior to the meeting date. SCIP will require the newspaper’s affidavit
confirming the date of its publication. If you need help completing the notice, please contact SCIP.]
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on ____________ [insert date of Council or Board meeting], a
public hearing will be held with respect to the proposed participation by the _________ [insert name of City or County]
(the “_____” [insert “City” or “County” as appropriate] in the Statewide Community Infrastructure Program of the
California Statewide Communities Development Authority. Participation in said program will enable property
owners to finance public capital improvements and/or development impact fees for public capital improvements
imposed on new development. Said public capital improvements, if financed, will be among the public capital
improvements required in connection with a given development project. Said development impact fees, if financed,
will be used by the _________ [insert “City” or “County” as appropriate] to pay for public capital improvements which
will serve the _________ [insert “City” or “County” as appropriate], and which will be of a type and nature authorized
under the Municipal Improvement Act of 1913 (codified at California Streets and Highways Code Sections 10000 et
seq.). Participation in said program does not itself authorize the _________ [insert “City” or “County” as appropriate]
to impose additional public capital improvements or new or additional development impact fees on any property
owner.
The hearing will commence at ______ [insert time of hearing], or as soon thereafter as the matter can
be heard, and will be held at __________ [insert street address and room number or name], ___________, California.
Interested persons wishing to express their views on the participation in such program and the financing of public
capital improvements and/or development impact fees as described above will be given an opportunity to do so at
the public hearing or may, prior to the time of the hearing, submit written comments to ______ [insert mailing address],
Attention: _______ [insert title of person designated to receive written comments].
Dated: ________ [insert date of publication.]
[CITY/COUNTY] OF ______________
[Name]
[City Clerk/Clerk of the Board]
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APPENDIX H
Sample SCIP Timetable
Date Action (Responsible Party)
January Approve SCIP Resolution (Local Agency)
Accept Applications for Funding (SCIP)
February/March SCIP Due Diligence on Applications (SCIP)
Set up SCIP Local Agency Account (SCIP)
April Final Cut Off Date for SCIP Applications (SCIP)
SCIP Consultants Approve Applications (SCIP)
May Finalize Engineer’s Reports (SCIP)
CSCDA Adopts Resolution of Intention (SCIP)
Notice Public Hearing (SCIP)
July (first two weeks) Hold Public Hearing (SCIP)
Conduct Landowner Protest Ballot Procedure (SCIP)
Confirm Assessments (SCIP)
Authorize the Sale of Bonds (SCIP)
July (last two weeks) Sell and Close Bond Issue (SCIP)
August Place on Tax Roll (SCIP)
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APPENDIX I
FORM OF RESOLUTION OF INTENTION
TO BE ADOPTED BY CSCDA
RESOLUTION OF INTENTION OF THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY TO FINANCE IMPROVEMENTS AND/OR THE
PAYMENT OF DEVELOPMENT IMPACT FEES FOR PUBLIC CAPITAL
IMPROVEMENTS IN THE PROPOSED ASSESSMENT DISTRICT NO. _______
(COUNTY OF __________, CALIFORNIA), APPROVING A PROPOSED BOUNDARY
MAP, MAKING CERTAIN DECLARATIONS, FINDINGS AND DETERMINATIONS
CONCERNING RELATED MATTERS, AND AUTHORIZING RELATED ACTIONS IN
CONNECTION THEREWITH
WHEREAS, under the authority of the Municipal Improvement Act of 1913 (the “1913 Act”), being Division
12 (commencing with Sections 10000 and following) of the California Streets and Highways Code, the Commission (the
“Commission”) of the California Statewide Communities Development Authority (the “Authority”) intends to finance,
through its Statewide Community Infrastructure Program, the payment of certain development impact fees for public
capital improvements (the “Fees”) and to finance certain public capital improvements to be constructed by or on behalf
of the property owner(s) and to be acquired by the _____ or another local agency (the “Improvements”), both of which
are described in Exhibit A attached hereto and by this reference incorporated herein, and all of which are of benefit to the
property within the proposed Assessment District No. _______ (County of __________, California) (the “Assessment
District”); and
WHEREAS, the Commission finds that the land specially benefited by the Fees and Improvements is shown
within the boundaries of the map entitled “Proposed Boundaries of Assessment District No. _______ (County of
__________, California),” a copy of which map is on file with the Secretary and presented to this Commission meeting,
and determines that the land within the exterior boundaries shown on the map shall be designated “Assessment District
No. _______ (County of __________, California)”;
NOW, THEREFORE, BE IT RESOLVED that the Commission of the California Statewide Communities
Development Authority hereby finds, determines and resolves as follows:
1. The above recitals are true and correct, and the Commission so finds and determines.
2. Pursuant to Section 2961 of the Special Assessment Investigation, Limitation and Majority Protest Act
of 1931 (the “1931 Act”), being Division 4 (commencing with Section 2800) of the California Streets and Highways Code,
the Commission hereby declares its intent to comply with the requirements of the 1931 Act by complying with Part 7.5
thereof.
3. The Commission has or will designate a registered, professional engineer as Engineer of Work for this
project, and hereby directs said firm to prepare the report containing the matters required by Sections 2961(b) and 10204
of the Streets and Highways Code, as supplemented by Section 4 of Article XIIID of the California Constitution.
4. The proposed boundary map of the Assessment District is hereby approved and adopted. Pursuant to
Section 3111 of the California Streets and Highways Code, the Secretary of the Authority is directed to file a copy of the
map in the office of the County Recorder of the County of __________ within fifteen (15) days of the adoption of this
resolution.
5. The Commission determines that the cost of the Fees and Improvements shall be specially assessed
against the lots, pieces or parcels of land within the Assessment District benefiting from the payment of the Fees and the
provision of the Improvements. The Commission intends to levy a special assessment upon such lots, pieces or parcels
in accordance with the special benefit to be received by each such lot, piece or parcel of land, res pectively, from the
payment of the Fees and the provision of the Improvements.
6. The Commission intends, pursuant to subparagraph (f) of Section 10204 of the California Streets and
Highways Code, to provide for an annual assessment upon each of the parcels of land in the proposed assessment district
to pay various costs and expenses incurred from time to time by the Authority and not otherwise reimbursed to the
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Authority which result from the administration and collection of assessment installments or from the administration or
registration of the improvement bonds and the various funds and accounts pertaining thereto.
7. Bonds representing unpaid assessments, and bearing interest at a rate not to exceed twelve percent
(12%) per annum, will be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10, Streets and
Highways Code), and the last installment of the bonds shall mature not to exceed thirty (30) years from the second day of
September next succeeding twelve (12) months from their date.
8. The procedure for the collection of assessments and advance retirement of bonds under the
Improvement Bond Act of 1915 shall be as provided in Part 11.1, Division 10, of the Streets and Highways Code of the
State of California.
9. Neither the Authority nor any member agency thereof will obligate itself to advance available funds
from its or their own funds or otherwise to cure any deficiency which may occur in the bond redemption fund. A
determination not to obligate itself shall not prevent the Authority or any such member agency from, in its sole discretion,
so advancing funds.
10. The amount of any surplus remaining in the improvement fund after payment of the Fees, acquisition
of the Improvements and payment of all claims shall be distributed in accordance with the provisions of Section 10427.1
of the Streets and Highways Code.
11. To the extent any Fees are paid to the Authority in cash with respect to property within the proposed
Assessment District prior to the date of issuance of the bonds, the amounts so paid shall be reimbursed from the proceeds
of the bonds to the property owner or developer that made the payment.
[End of Form of Resolution of Intention]
[Attach Exhibit A—description of development impact fees and public capital improvements. This exhibit will be
prepared by Developer’s Engineer, subject to SCIP review.]
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APPENDIX J
Form of Resolution Preliminarily Approving Engineer’s Report
RESOLUTION NO. __________
RESOLUTION PRELIMINARILY APPROVING ENGINEER’S REPORT,
SETTING DATE FOR PUBLIC HEARING OF PROTESTS AND
PROVIDING FOR PROPERTY OWNER BALLOTS FOR STATEWIDE
COMMUNITY INFRASTRUCTURE PROGRAM ASSESSMENT DISTRICT
NO. ______ (COUNTY OF _____________, CALIFORNIA)
WHEREAS, at the direction of this Commission, _______________, as Engineer of Work for improvement
proceedings in Statewide Community Infrastructure Program Assessment District No. _______ (County of _____,
California) has filed with the Authority the report described in Section 10204 of the Streets and Highways Code (Municipal
Improvement Act of 1913, hereafter in this resolution referred to as “the Act”), and containing the matters required by
Article XIIID of the California Constitution (“Article XIIID”), and it is appropriate for this Commission to preliminarily
approve said report and to schedule the public hearing of protests respecting said report; and
WHEREAS, a brief description of the development impact fees and public capital improvements to be financed
as described in said report is attached hereto as Exhibit A;
NOW, THEREFORE, THE COMMISSION OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY HEREBY FINDS, DETERMINES AND RESOLVES as
follows:
Section 1. The foregoing recitals are true and correct, and the Commission so finds and determines.
Section 2. This Commission preliminarily approves the report without modification, for the purpose of
conducting a public hearing of protests as provided in the Act, Article XIIID, and Section 53753 of the California
Government Code. Said report shall stand as the report for the purpose of all subsequent proceedings under the Act and
Section 53753, except that it may be confirmed, modified, or corrected as provided in the Act.
Section 3. This Commission hereby sets ______ o’clock, or as soon thereafter as the matter may be heard, on
__________, 20__ at ________________, as the time and place for a public hearing of protests to the proposed financing
of development impact fees and public capital improvements, the proposed levy of assessments, the amounts of individual
assessments, and related matters as set forth in said report, and any interested person may appear and object to said
financing of development impact fees and public capital improvements, or to the extent of said assessment district or to
said proposed assessment.
Section 4. Staff is hereby directed to cause a notice of said public hearing to be given by mailing notices thereof,
together with assessment ballots, in the time, form and manner provided by Section 53753, and upon the completion of
the mailing of said notices and assessment ballots, staff is hereby directed to file with the Assessment Engineer an affidavit
setting forth the time and manner of the compliance with the requirements of law for mailing said notices and assessment
ballots.
Section 5. ___________, Assessment Engineer, ____________, ___________, California 9____, (___) ___-
_____, is hereby designated to answer inquiries regarding the protest proceedings.
Section 6. This resolution shall take effect immediately upon its passage.
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PASSED AND ADOPTED by the California Statewide Communities Development Authority this ____ day of
_______, 20__.
[Attach Exhibit A—description of development impact fees and public capital improvements. This exhibit will be
derived from and possibly identical to Exhibit A of the CSCDA Resolution of Intention, Appendix I herein]
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APPENDIX K
Form of Notice of Hearing
California Statewide Communities Development Authority
Statewide Community Infrastructure Program
Assessment District No. ______
(County of ________, California)
Notice of Public Hearing and Assessment Ballot Procedure
Pursuant to the provisions of the Municipal Improvement Act of 1913 (California Streets and Highways Code
Sections 10000 and following, hereafter referred to as the “1913 Act”), Section 53753 of the California Government Code,
and Section 4 of Article XIIID of the California Constitution, the California Statewide Communities Development
Authority (the “Authority”) hereby gives notice as follows:
1. At ____ __.m. on ____________, at ________________________________, the Commission of the
Authority (the “Commission”) will hold a public hearing respecting the proposed Statewide Community
Infrastructure Program Assessment District No. ______ (County of _______________, California) (the
“Assessment District”) to hear and consider objections and protests respecting (a) a program for the financing
of certain development impact fees and public capital improvements (the “Program”) imposed upon parcels of
land within the Assessment District by levying special assessments upon such parcels, which receive special
benefit from the financing of such fees and improvements, (b) the extent of the Assessment District, (c) the
estimated cost and expense of the Program, (d) the amounts of the assessments proposed to be levied upon the
benefited parcels, and (e) the method or formula by which benefit has been estimated and any other aspect of
the proposed Assessment District to which any interested person may want to object or protest.
2. The applicable development impact fees, public capital improvements and the incidental costs and expenses of
Program implementation, legal proceedings, and bond financing which are the subject of the proposed
Assessment District are described in the enclosed Engineer’s Report for the proposed Assessment District. Said
Engineer’s Report is on file with the Assessment Engineer, __________________________________ at
__________________________________________________, (___) ________. The estimated cost and
expense to be assessed to the benefited parcels also includes related engineering expenses, fees for various
professional services related to formulation and implementation of the Assessment District, and costs of issuance
respecting the proposed tax-exempt improvement bonds. Please refer to the enclosed report for further
information on the details of the Program and the estimated cost and expense.
3. A brief description of the development impact fees and public capital improvements to be financed through the
Program is set forth on pages ____ of the enclosed report. Please see Exhibit ___, page ___ of the enclosed
report for the amount of the assessment proposed for your parcel or parcels. The reason that an assessment is
proposed for your parcel or parcels is that the Authority has determined, preliminarily, that such property is
specially benefited by the financing of the public capital improvements and the development impact fees imposed
upon your parcel or parcels. The basis upon which the amount of the proposed assessment was calculated is set
forth in Exhibit ___ of the enclosed report.
Reference is made to Exhibit ___ of the enclosed report for an Assessment Diagram showing the individual
parcels proposed to be assessed.
4. Pursuant to Sections 2960, 2961 and 10200 of the Streets and Highways Code, the Authority intends to comply
with the requirements of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 by
proceeding under Part 7.5 of Division 4 of the Streets and Highways Code. Please see Exhibit ___ of the enclosed
report for the information showing that the total true value of the parcels of land and improvements which are
proposed to be assessed is at least twice the total amount of (i) unpaid assessments already levied against the
property to be assessed, together with (ii) the amount of the proposed assessment for that property.
5. The Authority intends, pursuant to subparagraph (f) of Section 10204 of the 1913 Act, to authorize an annual
assessment upon each of the parcels of land in the proposed assessment district to pay various costs and expenses
incurred from time to time by the Authority and not otherwise reimbursed to the Authority which result from
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the administration and collection of assessment installments or from the administration or registration of the
improvement bonds and the various funds and accounts pertaining thereto, in an amount not to exceed five
percent (5.0%) of the annual installment of assessment levied upon each parcel in said assessment district. This
annual assessment shall be in addition to any fee charged pursuant to Sections 8682 and 8682.1 of the Streets
and Highways Code. Please see Exhibit ___ of the enclosed report on this topic.
6. It is the intention of the Authority that any delinquent assessment installment shall be subject to the same
penalties and interest as are applicable to general property taxes, and that the Tax Collector of the County of
______________ shall collect such penalties with and as a part of such delinquent assessment installments, and
all penalties collected shall be deposited into the bond redemption fund for such bonds.
7. Assuming the Authority levies assessments as intended, property owners will be provided an opportunity to pay
all or any part of such assessments in cash unless this entitlement is waived in writing by 100% of such property
owners. Following the termination of the cash payment period, bonds representing unpaid assessments and
bearing interest at a rate not to exceed twelve percent (12.0%) per annum shall be issued by the Authority
pursuant to the Improvement Bond Act of 1915 (Division 10, Streets and Highways Code), and the last
installment of the bonds shall mature not to exceed thirty (30) years from the second day of September next
succeeding twelve (12) months from their date. These estimates are subject to change, and the actual duration
of payments and interest rate will be determined only at the time of the bond sale.
8. For further particulars, you may refer to the Resolution of Intention and the Engineer’s Report, both of which
are on file with the Assessment Engineer. Inquiries about the assessment proceedings will be answered by
______________________________, Assessment Administrator, at (___) ________.
9. As provided by Section 4 of Article XIIID of the California Constitution and Section 53753 of the California
Government Code, an Official Property Owner Assessment Ballot has been enclosed with this notice, along with
a self-addressed, return envelope by which the assessment ballot may be returned to the Program Administrator.
Please note that THIS IS THE OFFICIAL ASSESSMENT BALLOT AND NOT A SAMPLE BALLOT. No
further assessment ballot will be provided to you. This assessment ballot may be used by the owner or owners
of any parcel to express either support for or opposition to the proposed assessment. Please see the assessment
ballot for instructions respecting the alternatives methods for submitting the ballot either by mail (which may be
done using the enclosed envelope) or by personal delivery, either prior to or at the time of the public hearing of
protests, including continuations of said public hearing. See enclosed ballot for further instructions.
Immediately following the close of the public hearing of protests, whether on ______________ or at the
conclusion of any continuation of said hearing to a later date or to later dates, the returned assessment ballots
will be tabulated, both in support of and in opposition to the assessment, with assessment ballots being weighted
in accordance with the amount of the proposed assessment, and the results will be announced; provided that, in
the event the Authority requires opportunity to determine (a) whether any assessment ballot has been properly
signed by an owner or authorized representative of an owner or (b) any other matter respecting any assessment
ballot and its proper treatment in the assessment ballot procedure, the Authority reserves entitlement to continue
the matter of announcing results to provide the Authority with such opportunity.
In the event that assessment ballots in opposition exceed assessment ballots in support, there will be a “majority
protest,” and the Authority will be precluded from proceeding with the proposed assessment.
10. Property owners wishing to preserve the opportunity to file a lawsuit challenging the assessment, if levied, are
required by law to file a written protest with the Authority (in care of the Program Administrator) and to state
therein the specific grounds of protest. Any grounds of protest not stated in a written protest filed with the
Authority (in care of the Program Administrator) prior to the close of the public hearing of protests are deemed
waived in any subsequent lawsuit and may not be raised in such lawsuit.
DATED: ________________________
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Secretary, California Statewide Communities
Development Authority
Enclosures: Engineer’s Report
Official Property Owner Assessment Ballot
Return Envelope
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APPENDIX L
Form of Recorded Notice of Assessment
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
NOTICE OF ASSESSMENT
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
ASSESSMENT DISTRICT NO. ______
FOR THE COUNTY OF _______
STATE OF CALIFORNIA)
Pursuant to the requirements of Section 3114 of the Streets and Highways Code of the State of California, the undersigned
Secretary of the California Statewide Communities Development Authority (the “Authority”) hereby gives notice that a
Diagram and Assessment were recorded in the office of the Superintendent of Streets of said Authority, as provided in
said Section, and relating to the following described property:
The lots, pieces or parcels of land as shown on the Assessment Diagram for the California Statewide
Communities Development Authority Assessment District No. ______ for the County of________,
State of California, which was filed for record in the office of the County Recorder of the County
_________ on ______, 20__, in Book ______ of Maps of Assessment and Community Facilities
Districts at Page(s) _______ thereof.
NOTICE IS FURTHER GIVEN that upon the recording of this notice in the office of the County Recorder, the several
assessments assessed upon the lots, pieces or parcels of land shall become a lien upon the lots or portions of lots assessed,
respectively.
Reference is made to the Assessment Diagram hereinabove referred to and the Assessment Roll recorded in the office of
the Superintendent of Streets of the Authority on __________, 20__. The Assessment Roll recorded in the office of the
Superintendent of Streets is referred to in order to determine the amount of each assessment levied against each parcel of
land shown upon the assessment diagram.
A list of the names of the assessed owners as they appear on the latest secured assessment roll, or as known to the
undersigned Secretary, is attached hereto and made a part hereof.
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NOTICE IS FURTHER GIVEN that, pursuant to Section 10204(f) of the Streets and Highways Code, the Authority has
reserved entitlement to impose an annual assessment, which is in addition to the installment otherwise payable on account
of each unpaid assessment, to pay costs incurred by the Authority and not otherwise reimbursed which result from the
administration and collection of assessments or from the administration or registration of any associated bonds and the
reserve fund or other related funds; provided that such additional annual assessment shall not exceed the maximum
amount prescribed therefor in the written engineer’s report for these assessment proceedings.
Dated:
__________________________, Secretary
CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
By______________________________________
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CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
ASSESSMENT DISTRICT NO. ______
FOR THE COUNTY OF _______
STATE OF CALIFORNIA
Assessment No.
Assessor Parcel Number Name of Property Owner
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
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APPENDIX M
Form of Published Notice of Recording of Assessment
NOTICE OF ASSESSMENT
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
ASSESSMENT DISTRICT NO. ______
FOR THE COUNTY OF _______
STATE OF CALIFORNIA
On __________, special assessments for the financing of public improvements in the California Statewide
Communities Development Authority (the “Authority”) Assessment District No. ___ for the County of _________, State
of California (the “Assessment District”), were recorded in the office of the Superintendent of Streets of the Authority.
The property owners within the Assessment District have waived their entitlement to pay all or any portion of the
assessments levied upon their property in cash within thirty days after the recordation of the assessments in the office of
the County Recorder of the County of ___________. These assessments affect only certain property, the owners of
which have voluntarily participated in the Authority’s Statewide Community Infrastructure Program. Bonds will be issued
according to the Improvement Bond Act of 1915 representing unpaid assessments and bearing interest at a rate not to
exceed 12% per year. Thereafter, unpaid assessments will be payable in installments of principal and interest over a period
of not to exceed thirty (30) years.
Dated:
_______________________, Secretary,
California Statewide Communities Development
Authority
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APPENDIX N
Form of Local Agency Closing Certificate
LOCAL AGENCY CLOSING CERTIFICATE
([City of _____/County of _____])
California Statewide Communities Development Authority
Statewide Community Infrastructure Program Revenue Bonds
Series 20___
This Local Agency Closing Certificate is executed and delivered by the undersigned on behalf of the [City of
_____/County of _____] (the “Local Agency”) with respect to the financing pursuant to the Statewide Community
Infrastructure Program (“SCIP”) of certain public capital improvements required (the “Improvements”) and certain
development impact fees levied by the Local Agency (the “Eligible Impact Fees”) for certain development projects (the
“Projects”) located on real property within the planning jurisdiction of the Local Agency (the “Assessed Parcels”), all as
described in Schedule I.
The undersigned is an authorized representative of the Local Agency, and is acting for and on behalf of the Local
Agency in executing this Certificate. To the best of the knowledge and belief of the undersigned, there are no other facts,
estimates or circumstances that would materially change the certifications and expectations as set forth herein, and said
certifications and expectations are reasonable.
In connection with the issuance of the above referenced bonds (the “Bonds”), the Local Agency hereby
represents, warrants and certifies as follows:
1. With respect to each Assessed Parcel and the Projects to be constructed thereon, each of the following is true to
the best knowledge of the undersigned without undertaking any investigation or inquiry:
a. The Projects have been approved by the Local Agency and have received all discretionary development
permits and approvals required to be issued by the Local Agency.
b. There is no legal impediment or limitation which would prevent the Projects from going forward as
approved in a timely fashion.
c. The provisions of the California Environmental Quality Act have been complied with in connection
with the approvals described in subparagraph (a) above.
d. There is no litigation pending or to the knowledge of the Local Agency threatened which challenges the
development of the Projects or the Local Agency’s participation in SCIP nor is there any basis therefor.
e. The owners of the Assessed Parcels are not delinquent in the payment of any tax, assessment, fee or
charge levied by the Local Agency on or as a result of the ownership or development of the Assessed
Parcels.
2. The resolution of the Local Agency by which it joined SCIP was duly adopted by the governing body of the
Local Agency, has not been amended, modified, repealed or rescinded and is in full force and effect as of the
date hereof.
3. The Local Agency is a Program Participant of the California Statewide Communities Development Authority.
4. The Tax Certifications attached hereto as Exhibit A are true and correct.
5. To the best knowledge of the undersigned, Schedule I is accurate and complete.
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Dated: [Program Series Closing Date]
[CITY OF _____/COUNTY OF _____]
_____________________________
Authorized Representative
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SCHEDULE I
Name of Local Agency: [City of _____/County of _____]
SCIP Program Series: Series 20___
County Location: [County]
Property Owner Name(s)
Assessed Parcel (APN)
Assessment Liens
Imposed*
Building Permit Issued?
$
TOTAL: $
Allocation Between Improvement Costs and Eligible Impact Fees (per Exhibit B of the Engineer’s Report for the
County of [County]:
1. Improvement Costs $
2. Eligible Impact Fees $
_____________
*Not to exceed
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EXHIBIT A
LOCAL AGENCY TAX CERTIFICATION
The Local Agency hereby makes the following representations of facts and expectations and
covenants to comply with the requirements of this Tax Certification in connection with its participation in the
Statewide Community Infrastructure Program (the “Program”) Revenue Bonds, Series 20__, in an aggregate
amount not to exceed $____________ (the “Participation”). The representations and covenants contained in
this Tax Certification are in furtherance of the requirements of the Program and are designed to support the
conclusion that the interest paid on the bonds issued to fund the Program and the Participation (the “Bonds”)
is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue
Code of 1986 (the “Code”).
1.1 Use of Facilities. The proceeds of the Participation (the “Proceeds”) will be used to
finance the construction or acquisition of certain public improvements (the “Facilities”). The Local Agency or
another state or local government agency will own, and for the entire useful life of the Facilities reasonably
expects to own, all of the Facilities. To the extent the Local Agency wishes to sell any of the Facilities to an
entity that is not a state or local government agency prior to the retirement of the Local Obligations, the Local
Agency will comply with the directions of SCIP Counsel as far as they pertain to Federal Tax Law. The Local
Agency will not allow any of the Proceeds or any of the Facilities to be used (for example, by lease or other
contract) in the trade or business of any nongovernmental persons (other than in their roles as members of the
general public) and will not loan any of the Proceeds. All of the Facilities will be used in the performance of
essential governmental functions of the Local Agency or another state or local government agency.
The average expected useful life of the Facilities is at least ___ years.
1.2 Timing of Expenditures. The Local Agency reasonably expects that all of the Proceeds
will be spent for the governmental purpose of the Participation within three years. In addition, the Local
Agency reasonably expects that at least 5% of the Proceeds will be spent, or that the Local Agency will incur a
binding obligation to a third party involving an expenditure of such amount, within six months. The Local
Agency reasonably expects that construction or acquisition of the Facilities will proceed with due diligence to
completion and that the allocation of proceeds to expenditures for the Facilities will proceed with due
diligence. None of the Proceeds will be used to pay principal of or interest on any obligations.
1.3 Expenditure of Proceeds. Proceeds and other deposits under the Program are not
treated as spent on the Facilities until the Local Agency makes a transfer to a person unrelated to the Local
Agency and such transfer represents a payment for the Facilities. A payment for the Facilities will occur if
Proceeds or other deposits under the Program are transferred from the Fee Accounts either (a) to the Local
Agency and actually used to make a payment to a person unrelated to the Local Agency no later than three days
after the transfer or (b) to a third party at the direction of the Local Agency to pay the cost of the Facilities. To
the extent Proceeds or other deposits under the Program are transferred to the Local agency to reimburse the
Local Agency for costs of Facilities paid before the date of the transfer, such costs were originally paid no
earlier than 55 days before the date of such transfer.
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APPENDIX O
Arbitrage Rebate and Yield Restriction Services
The Program Administrator will provide the following services (the “Arbitrage Services”) to the
Authority, subject to the conditions and limitations set forth herein.
The Program Administrator will calculate the amount of arbitrage rebate and yield restriction liability
with respect to the Bonds once per year as of the end of each bond year and as of the final maturity or redemption
of the Bonds (each such date on which an arbitrage rebate and/or yield restriction calculation is performed is
referred to herein as a “Calculation Date”) applying regulations of the United States Department of the Treasury
in effect on such Calculation Date.
Within 60 days of each Calculation Date, the Program Administrator will prepare or cause to be
prepared schedules reflecting the relevant calculations and the assumptions involved and will deliver a rebate
liability report (“Rebate Report”) and a yield restriction report (“Yield Restriction Report”), if applicable,
addressed to the Authority, as to the amount of the rebate liability and yield restriction liability as of such
Calculation Date. Each Rebate Report and Yield Restriction Report will include a legal opinion provided by
SCIP Counsel to the effect that such report is based on calculations performed in accordance with applicable
federal law and regulations.
The Program Administrator is not obligated to undertake any of the following: (1) independently
determine whether there were “prohibited payments” or “imputed receipts” within the meaning of the Treasury
Regulations; (2) perform calculations or other research as to the desirability of elections or selections that may
be available under applicable federal tax law; (3) review the tax-exempt status of interest on the Bonds or any
other aspect of the Bonds except to the extent of the Arbitrage Services set forth in this Appendix; and (4) except
as otherwise set forth herein, update any report delivered hereunder because of events occurring, changes in
regulations, or data or information received, subsequent to the date of delivery of such report.
In addition, the Program Administrator will be entitled to rely entirely on information provided by the
Authority and/or its agents and assigns without independent verification for the purpose of providing the
Arbitrage Services.
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APPENDIX P
Continuing Disclosure Services
SERVICES PROVIDED BY AUTHORITY
The Authority will provide or cause to be provided to the Program Administrator prompt notice of any
one of the following Specified Events as and when they occur: (1) non-payment related defaults; (2) adverse tax
opinions or events affecting the tax-exempt status of the Bonds (provided, however, that notice to bond counsel
of information regarding any Internal Revenue Service inquiry regarding the Bonds shall be sufficient
transmission of information regarding this specified event); and (3) modifications to rights of bondholders
(provided, however, that notice to bond counsel of information regarding such proposed modifications to rights
of bondholders regarding the Bonds shall be sufficient transmission of information regarding this specified
event).
The Authority will also provide to the Program Administrator all information required by the
Continuing Disclosure Agreement or requested by the Program Administrator in order to provide the services
specified herein; any certifications the Program Administrator may request regarding the accuracy, completeness
and fairness of such information or of any Disclosure; and any other assistance reasonably requested by the
Program Administrator. Whether or not any such certifications are requested or cover any specified information,
the Authority represents that all information provided to the Program Administrator will be accurate, complete
and fair, and the Program Administrator shall be entitled to rely, without independent investigation, entirely on
the accuracy, completeness and fairness of all information provided by the Authority and/or its officers,
employees, agents, attorneys, accountants, engineers and consultants.
SERVICES TO BE PROVIDED BY PROGRAM ADMINISTRATOR
The Program Administrator will provide the following services on behalf of the Authority, subject to
the conditions and limitations set forth herein.
I. With respect to each Annual Report:
(1) Determine from the Continuing Disclosure Agreement what categories of information are required
to be included in the Annual Report, about which obligated persons, by whom and by when it must
be provided to the Municipal Securities Rulemaking Board (the “MSRB”).
(2) Assist the officers or employees of the Authority designated with responsibility for continuing
disclosure to assemble information necessary for the Annual Report.
(3) Review material compiled to determine whether it covers the categories referred to in (1) above.
Make appropriate follow-up inquiries based on the information compiled.
(4) Circulate proposed form of Annual Report to the SCIP Trustee and the Authority for review and
comment; make appropriate revisions.
(5) Prepare and circulate for execution appropriate certifications of the Authority and others regarding
information included in the Annual Report.
(6) Submit or confirm submission of the Annual Report to the MSRB.
(7) Maintain, or cause to be maintained, for at least six (6) years, a record of the Annual Report
submitted to the MSRB.
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II. With respect to each of the events specified in the Continuing Disclosure Agreement (each, a “Specified Event”) requiring
timely reporting and subject to the provisions contained in the introductory part of this Appendix regarding the transmission
of prompt notice of certain specified events to the Program Administrator:
(1) Upon request by the Authority or SCIP Trustee, assist in determining whether an event brought
to the attention of the Program Administrator by the Authority or the SCIP Trustee is a Specified
Event requiring reporting pursuant to the Continuing Disclosure Agreement if material and, if so,
whether such Specified Event is material.
(2) Provide appropriate instructions to the SCIP Trustee or other person designated by the Continuing
Disclosure Agreement to provide notice of Specified Events determined to be material.
(3) Assist in preparation of the notice concerning any Specified Event determined to be material.
(4) After appropriate execution by the Authority, submit or confirm submission of the material
Specified Event notice to the MSRB.
(5) Maintain, or cause to be maintained, for at least six (6) years, a record of the Specified Event notice
submitted to the MSRB.
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APPENDIX Q
SCIP Disbursement Form
To: BLX Group LLC
777 S. Figueroa St., Suite 3200
Los Angeles, California 90017
Attention: Daniel Chang
Fax: 213-612-2499
Phone: 213-612-2205
Re: Statewide Community Infrastructure Program
The undersigned, a duly authorized officer of the [LOCAL AGENCY] hereby requests a
disbursement from the [SCIP LOCAL AGENCY ACCOUNT], associated with the above captioned financing
and certifies that the amounts of development impact fees financed thereby and listed below have been or will
be spent by the __________ for public capital improvements as of the date indicated below or within 5 days
thereafter:
Accounts Amount
$____________________
TOTAL: $____________________
Wiring Instructions:
The undersigned hereby certifies as follows:
1. The use to which these funds have been or will be put is a permitted use pursuant to the fees
indicated for public capital improvements, and this disbursement is not being made for the purpose of
reinvestment.
2. None of the expenditures for which payment is requested have been reimbursed previously from
other sources of funds.
3. If the Total amount above is greater than the funds held by SCIP on behalf of the [LOCAL
AGENCY], the Program Administrator is authorized to amend the amount requested to be equal to
the amount of such funds.
4. To the extent the disbursement is being made prior to the date the bonds have been issued, this
disbursement form serves as the declaration of official intent of the [LOCAL AGENCY], pursuant to
Treasury Regulations 1.150-2, to reimburse itself with respect expenditures made from the Fees Sub-
accounts referenced above in the amount requested.
Unless amended by prior written notice to the Program Administrator, the disbursement amount shall
be forwarded to the financial institution and account provided to the Program Administrator as part
of the [LOCAL AGENCY’s] SCIP enrollment materials.
Dated: [DATE]
[LOCAL AGENCY]
By :
Title:
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APPENDIX R
SCIP Investment Policy
Chapter 2
Introduction
The purpose of this Investment Policy (the “Policy”) is to establish cash management and investment
guidelines for the Program Administrator, who is responsible for the prudent investment of public funds held in
SCIP. All investments will comply with Federal and State investment regulations and bond covenants applicable
to any debt issued as part of SCIP.
Scope
This Policy applies to all SCIP-related funds.
Standard of Care
California Government Code Section 53600.3 states that “… all governing bodies of local agencies or
persons authorized to make investment decisions on behalf of those local agencies investing public funds
pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When
investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act
with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to,
the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like
capacity and familiarity with those matters would use in the conduct of funds of a like character and with like
aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this
section and considering individual investments as part of an overall strategy, investments may be acquired as
authorized by law.”
The Program Administrator in the management of SCIP funds shall use the “Prudent Investor”
standard. The Program Administrator acting in accordance with this Policy, written portfolio guidelines and
procedures and exercising due diligence shall be relieved of personal responsibility for individual security’s credit
risk or market price changes, provided deviations from expectations are reported in the quarterly investment
reports to the Authority, and appropriate action is taken to control adverse developments.
The Program Administrator and its employees shall refrain from all personal business activity that could
conflict with the management of the investment program. When investing, reinvesting, purchasing, acquiring,
exchanging, selling and managing SCIP funds, the Program Administrator shall act with the care, skill, prudence
and diligence to meet the aims of the Investment Objectives listed in order in “Investment Objectives,” below.
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Investment Objectives
SCIP funds shall be prudently invested in order to earn a reasonable return, while awaiting application
for governmental purposes. The specific investment objectives, in priority order, of investment activities shall
be safety, liquidity, and yield:
1. Safety
Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in
a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to
mitigate credit risk and interest rate risk. The Program Administrator may elect to sell a security prior to its
maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio
in response to market conditions.
2. Liquidity
Investments shall provide sufficient liquidity and flexibility to enable the Program Administrator to provide
funds to the participating Local Agencies for permissible governmental purposes on an as requested basis.
Flexibility may be achieved in a number of ways, which may include purchasing sufficient short-maturity
investments, purchasing investments that are readily marketable to a large number of securities dealers, etc.
3. Yield
The Program Administrator will take prudent steps to maximize the retainable earnings of all SCIP monies
after meeting the requirements of safety and liquidity.
Permitted Investments
1. Direct Obligations of the United States of America
United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith
and credit of the United States are pledged for the payment of principal and interest.
2. Federal Agency Obligations
Federal Agency obligations shall be limited to obligations issued by Banks for Cooperatives, Federal Land
Banks, Federal Intermediate Credit Banks, Federal Farm Credit Banks, the Federal Home Loan Bank Board,
the Tennessee Valley District, or in obligations, participations, or other instruments of, or issued by, or
guaranteed as to principal and interest by the Federal National Mortgage Association; or in guaranteed
portions of Small Business Administration notes; or in obligations, participations, or other instruments of,
or issued by, a federal agency or a United States government-sponsored enterprise, or such agencies or
enterprises which may be created.
3. Negotiable Certificates of Deposit
Negotiable Certificates of Deposits shall be limited to issuers with the highest short-term ratings by both
Standard & Poor’s and Moody’s rating agencies with a maximum maturity of one year.
4. Commercial Paper
Commercial paper rated in the highest short-term rating category, as provided by Moody’s Investors Service,
Inc. and Standard & Poor’s Corporation; provided that the issuing corporation is organized and operating
within the United States, has total assets in excess of $500 million and has an “A” or higher rating for its
long-term debt, if any, as provided by Moody’s or Standard & Poor’s.
Purchases of eligible commercial paper may not exceed 180 days maturity nor represent more than 10
percent of the outstanding paper of an issuing corporation.
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Purchases of commercial paper may not exceed 15 percent of SCIP’s portfolio; provided, however, that an
additional 15 percent, or a total of 30 percent of the SCIP’s investment portfolio, may be invested only if
the dollar-weighted average of the entire amount does not exceed 31 days.
5. Bankers’ Acceptances
Bankers’ Acceptances shall be limited to issuers with the highest short-term ratings by both Standard &
Poor’s and Moody’s. The maximum maturity shall be 180 days or less. A maximum of 40% of SCIP’s funds
may be invested in Bankers’ Acceptances, with a maximum of 20% of SCIP’s funds in Bankers’ Acceptances
of any one commercial bank.
6. Money Market Mutual Funds
Shares of beneficial interest shall be limited to shares issued by diversified management companies that are
money market funds registered with the Securities and Exchange Commission under the Investment
Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.) as long as the company shall have attained the highest
ranking or the highest letter and numerical rating provided by not less than two nationally recognized
statistical rating organizations.
7. Repurchase Agreements
Repurchase Agreements shall be limited to the following conditions:
• With any domestic bank the long term debt of which is rated “AA” or better by S&P and “Aa2”
by Moody’s (so long as an opinion is rendered that the repurchase agreement is a “repurchase
agreement” as defined in the Financial Institutions Reform, Recovery and Enforcement Act of
1989 (“FIRREA”) and that such bank is subject to FIRREA), or any foreign bank rated at least
“AA” by S&P and “Aaa” by Moody’s or “AAA” by S&P and at least “Aa” by Moody’s.
• With (i) any broker-dealer with “retail customers” which has, or the parent company of which has,
long-term debt rated at least “AA” by S&P and “Aa” by Moody’s, which broker-dealer falls under
the jurisdiction of the Securities Investor’s Protection Corp. (SIPC);
• With any corporation (other than a life or property casualty insurance company) the long-term debt
of which, or, in the case of a guaranteed corporation the long-term debt of the guarantor, or in the
case of a monoline financial guaranty insurance company the claims paying ability of the guarantor,
is rated at least “AA” by S&P and “Aa” by Moody’s; provided that;
• The market value of the collateral is maintained for United States Treasury Obligations and
Government National Mortgage Association Obligations at 104% of the invested balance, and for
Federal National Mortgage Association Senior debt obligations and Federal Home Loan Mortgage
Corporation Senior debt obligations at 105% of the invested balance, such collateral must also
meet the Further Collateral Requirements below;
• Failure to maintain the requisite collateral percentage will require the Program Administrator or
the SCIP Trustee to liquidate the collateral;
• The SCIP Trustee, or a third party acting solely as agent therefor (the “Holder of the Collateral”)
has possession of the collateral or the collateral has been transferred to the Holder of the Collateral
in accordance with applicable state and federal laws (other than by means of entries on the
transferor’s books);
• The repurchase agreement states, and an opinion of counsel is rendered to the effect, that the SCIP
Trustee has a perfected first priority security interest in the collateral, any substituted collateral and
all proceeds thereof (in case of bearer securities, this means the Holder of the Collateral is in
possession);
• The transferor represents that the collateral is free and clear of any third-party liens or claims;
• An opinion is rendered that the repurchase agreement is a “repurchase agreement” as defined in
the United States Bankruptcy Code;
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• There is or will be a written agreement governing every repurchase transaction;
• The SCIP Trustee represents that it has no knowledge of any fraud involved in the repurchase
transaction; and
• The SCIP Trustee receives an opinion of counsel (which opinion shall be addressed to the SCIP
Trustee) that such repurchase agreement is legal, valid and binding and enforceable against the
provider in accordance with its terms.
8. Local Agency Investment Fund (LAIF)
9. State Obligations
State obligations shall be limited to the following:
• Direct general obligations of any state of the United States or any subdivision or agency thereof to
which is pledged the full faith and credit of a state the unsecured general obligation debt of which
is rated “A2” by Moody’s and “A” by S&P, or better, or any obligation fully and unconditionally
guaranteed by any state, subdivision or agency whose unsecured general obligation debt is so rated.
• Direct, general short-term obligations of any state agency or subdivision described in (a) above and
rated “A-1+” by S&P and “Prime-1” by Moody’s.
• Special Revenue Bonds (as defined in the United States Bankruptcy Code) of any state, state agency
or subdivision described in (a) above rated “AA” or better by S&P and “Aa2” or better by Moody’s.
10. Forward Purchase Agreements
With regard solely to the investment of proceeds of the Bonds, the Program Administrator may direct the
SCIP Trustee to enter into Forward Purchase Agreements subject to the following requirements:
• Each Forward Purchase Agreement shall comply with any applicable provisions of law or of the
bond documents;
• The Program Administrator may provide letters of direction and representation to the SCIP
Trustee and to the provider of each Forward Purchase Agreement; and
• Each Forward Purchase Agreement shall only provide for the purchase by the SCIP Trustee of
investments described under paragraphs 1, 2 and 4 of Permitted Investments above, at the times
and in the amounts appropriate for the applicable bond reserve or debt service fund.
11. Investment Agreements
With regard solely to the investment of proceeds of the Bonds, the Program Administrator may direct the
SCIP Trustee to enter into Investment Agreements subject to the following requirements:
• Each Investment Agreement will limited to agreements with a domestic or foreign bank or
corporation (other than a life or property casualty insurance company) the long-term debt of which,
or in the case of a guaranteed corporations the long-term debt of the guarantor, or in the case of a
monoline financial guaranty insurance company t the claims paying ability of the guarantor, is rated
at lest “AA” by S&P and” Aa2” by Moody’s; provided, that prior written notice of an investment
in the investment agreement is provided to S&P and Moody’s and, provided, further, by the terms
of the investment agreement.
• Interest payments are to be made to the SCIP Trustee at times and amounts as necessary to pay
debt service on the Bonds;
• the invested funds are available for withdrawal without penalty or premium, at any time for
purposes identified in the SCIP Manual of Procedures other than acquisition of alternative
investment property upon not more than seven days prior notice;
• the Investment Agreement shall state that it is the unconditional and general obligation of, and is
not subordinated to any other obligation of, the provider thereof;
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• the SCIP Trustee and the Authority shall receive the opinion of domestic counsel (which opinion
shall be addressed to the Authority) that such Investment Agreement is legal, valid and binding and
enforceable against the provider in accordance with its terms and of foreign counsel (if applicable);
• the Investment Agreement shall provide that if during its terms (a) the provider’s or the guarantor’s
rating by either S&P or Moody’s is withdrawn or suspended or falls below “AA” or “Aa2”,
respectively, or, with respect to a foreign bank, below the ratings of such provider at the delivery
date of the investment agreement, the provider must, at the direction of the Authority or the SCIP
Trustee within 10 days of receipt of such direction, either (1) collateralize the investment agreement
by delivering or transferring in accordance with applicable state and federal laws (other than by
means of entries on the provider’s books) to the SCIP Trustee or a Holder of the Collateral, United
States Treasury Obligations at 104% of the invested balance which are free and clear of any third-
party liens or claims and which meets the Further Collateral Requirements below; or (2) repay the
principal of and accrued but unpaid interest on the investment (the choice of (1) or (2) above shall
be that of the SCIP Trustee), and (B) the provider’s or the guarantor’s rating by either Moody’s or
S&P is withdrawn or suspended or falls below “A”, or, with respect to a foreign bank, below, “AA”
or “Aa2” by S&P or Moody’s, as appropriate, the provider must, at the direction of the Program
Administrator or the SCIP Trustee, within 10 days of receipt of such direction, repay the principal
of and accrued but unpaid interest on the investment, in either case with no penalty or premium
to the Program Administrator or SCIP Trustee.
• The investment agreement shall state, and an opinion of counsel shall be rendered to the effect,
that the SCIP Trustee has perfected first priority security interest in the collateral, any substituted
collateral and all proceeds thereof (in the case of bearer securities, this means the SCIP Trustee is
in possession); and
• The investment agreement must provide that if during its term (A) the provider shall default in its
payment obligations, the provider’s obligation under the investment agreement shall, a the direction
of the Program Administrator or the SCIP Trustee, be accelerated and amounts invested and
accrued but unpaid interest thereon shall be repaid to the Program Administrator or SCIP Trustee,
as appropriate, and (B) the provider shall become insolvent, not pay its debts as they become due,
be declared or petition to be declared bankrupt, etc. (“event of insolvency”), the provider’s
obligations shall automatically be accelerated and amounts invested and accrued but unpaid interest
thereon shall be repaid to the Program Administrator or SCIP Trustee, as appropriate.
Prohibited Investments
This Policy specifically prohibits the investment of any funds in the following derivative securities as
defined in Gov. Code Sec. 53601.6:
Any security that derives its value from an underlying instrument, index, or formula. The derivative universe
includes, but is not limited to, structured and range notes, securities that could result in zero interest accrual
if held to maturity, variable rate, floating rate or inverse floating rate investments, and mortgage derived
interest or principal only strips.
Reporting Requirements
The Program Administrator shall submit quarterly investment reports to the Authority. The Reports
shall include, at a minimum, the following information for each individual investment:
• Description of investment instrument
• Issuer Name
• Yield on cost
• Purchase Date
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• Maturity Date
• Purchase Price
• Par Value
• Current market value and the source of the valuation
The quarterly report shall also state compliance of the portfolio to the statement of investment policy,
or manner in which the portfolio is not in compliance. The quarterly report shall be submitted within thirty days
following the end of the quarter.
The Program Administrator shall also provide quarterly reports to the Local Agencies detailing each
Local Agency’s funds on deposit with SCIP.
Safekeeping and Custody
The assets of SCIP shall be secured through the third-party custody and safekeeping procedures. Bearer
instruments shall be held only through third-party institutions. All securities transactions shall settle “delivery
versus payment” through the safekeeping agent.
Review of Policy
The Policy and compliance of the investment portfolio with the Policy shall be reviewed annually by
the Authority.
Delegation of Authority
Responsibility for the implementation of the investment program is hereby delegated to the Program
Administrator, who shall establish and act in accordance with written procedures and internal controls for the
operation of the investment program consistent with this investment policy. The Program Administrator shall
be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of
any subordinate officials, including the establishment of an investment committee. The Program Administrator
may also retain and consult with legal, financial and other investment professionals and advisors.
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APPENDIX S
Form of Initial Demand Letter of Delinquent Property Owner
Date
Property Owner Name
Address
City, State ZIP
Re: California Statewide Communities Development Authority
Statewide Community Infrastructure Program
CSCDA SCIP Assessment District No.________
County of __________ Assessor’s Parcel Number ___________
Dear Property Owner:
Your property identified by the referenced assessor’s parcel number (the “Parcel”) is part of the
referenced Assessment District. The California Statewide Communities Development Authority (the
“Authority”) formed the Assessment District under the Municipal Improvement Act of 1913 and sold bonds
under the Revenue Bond Act to finance improvements benefiting the Parcel, and each year your assessment
for these improvements is placed on your County (the “County”) property tax bill. Please notify this office
immediately if you no longer own the Parcel.
According to data obtained from the County Tax Collector’s Office, the first [and/or second]
installment of the ______tax year assessments for the Parcel were not paid as of _____________. If you have
recently paid this installment to the County, please disregard this reminder.
If, however, this installment is still unpaid, kindly remit payment of same to the County Tax Collector’s
Office, [Address][, or you may pay on-line at www.__________________]. For information about your tax bill,
please contact the County Tax Collector at [Phone Number]. If you have any other questions, please contact the
undersigned at (___) _________.
Very truly yours,
[Assessment Administrator]
Delinquency Management
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APPENDIX T
Form of Second Letter of Delinquent Owner
Date
Property Owner Name
Address
City, State ZIP
Re: California Statewide Communities Development Authority
Statewide Community Infrastructure Program
CSCDA SCIP Assessment District Number ____________
County of ___________ Assessor’s Parcel Number ____________
Dear Property Owner:
Your property, identified by the referenced assessor’s parcel number (the “Parcel”), is part of the
referenced Assessment District. The California Statewide Communities Development Authority (the
“Authority”) formed the Assessment District under the Municipal Improvement Act of 1913 and sold bonds
under the Revenue Bond Act to finance improvements benefiting the Parcel, and each year your assessment
for these improvements is placed on your County (the “County”) property tax bill. Please notify this office
immediately if you no longer own the Parcel.
According to data obtained from the County Tax Collector’s Office, the installment(s) of your Tax Bill
for the Parcel for the ______ tax year, were not paid as of ________. If you have recently paid these
installment(s) to the County Tax Collector, please disregard this demand. If, however, these installment(s) are
still unpaid, you are being advised that if payment is not made to the County Tax Collector within thirty (30)
days from the date of this letter, the Authority may authorize the removal of the delinquent special assessment
portion of your Tax Bill from the County tax roll in order to start a judicial foreclosure action against the Parcel
to collect the special assessment portion of your Tax Bill, in accordance with applicable law. The costs of the
removal and the legal fees and expenses occasioned by the judicial foreclosure action are substantial, and will be
added to the amounts required for you to redeem (cure) the delinquent special assessments. It is to your
advantage to pay your taxes promptly so that you will not incur these expenses.
You can prevent the removal and foreclosure from taking place by paying your entire Tax Bill to the
County Tax Collector within thirty (30) days from the date of this letter. Kindly remit your tax payment to the
County Tax Collector’s Office, [Address][, or you may pay on-line at www.__________________]. For
information about your tax bill, please contact the County Tax Collector at [Phone Number].
Your immediate attention to this matter is urged. Should you need further assistance, please contact the
undersigned at (___) _________.
Very truly yours,
[Assessment Administrator]
Delinquency Management
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APPENDIX U
Form of Lender Demand Letter
Date
Lender Name
Address
City, State ZIP
Re: California Statewide Communities Development Authority
Statewide Community Infrastructure Program
CSCDA SCIP Assessment District Number ____________
County of _________, Assessor’s Parcel Number ____________
Ladies and Gentlemen:
Our firm is the special assessment administrator of the California Statewide Communities Development Authority (the
“Authority”) with respect to the [name of assessment district] (the “District”). The property described above is subject
to a lien in the District that is delinquent in the amount of $________. The Authority has issued bonds secured by this
lien, and has covenanted for the benefit of the bondholders to foreclose any delinquent assessment liens in order to
provide funds to pay debt service on the bonds.
Official records show that you have made a loan to the owner of this property, which is secured by a mortgage or deed
of trust on the property. We have sent reminder and demand letters to the owner of record of this property on [dates]
and the delinquency remains unpaid. We hereby inform you that if the delinquent amount is not cured within 30 days of
the date of this letter, the Authority will engage counsel and commence a foreclosure action in Superior Court to enforce
the lien. This assessment lien is senior to your mortgage or deed of trust by operation of law, and if the lien is
foreclosed, your mortgage or deed of trust will be extinguished. If the Authority is forced to commence
foreclosure, there will be immediate legal, title and filing costs attached to this lien in an amount estimated to be
approximately $________, and further legal and other costs will be incurred as the foreclosure process continues. All of
these costs are recoverable in the foreclosure judgment and will be added to the delinquent assessment amount. In
addition, the delinquent assessment bears interest at the rate of 1.5% per month (18% per year).
Should you wish to cure this delinquency and forestall the actions described above, you can pay the delinquent amount
and remain free to proceed against your borrower. For information about your borrower’s tax bill, please contact the
County Tax Collector at [Phone Number]. If you have any other questions, please contact the undersigned at (___)
_________.
Please take prompt action in order to avoid additional fees and expenses and protect your security interest in the
property.
Sincerely,
[Assessment Administrator]
Cc: [Property Owners]
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APPENDIX V
Form of Disclosure Notice to Subsequent Purchasers
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ASSESSMENT DISTRICT NO. ______
(COUNTY OF ________, CALIFORNIA)
TO: The prospective purchaser of the real property known as:
Lot No.___________ Tract No. __________.
THIS IS A NOTIFICATION TO YOU PROVIDED PRIOR TO, OR AT THE TIME OF,
PURCHASE OF THIS PROPERTY. THE SELLER IS REQUIRED TO GIVE YOU THIS NOTICE, AND
TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE RECEIVED AND READ A
COPY OF THIS NOTICE.
The California Statewide Communities Development Authority has established an Assessment District which
includes the area in which the new home you are considering purchasing is located. The purpose of the Assessment
District is to pay for certain public capital improvements and certain development impact fees imposed as a condition to
the development of your prospective new home. Those fees have paid or will pay for the design and construction of
major infrastructure such as streets, sewers, storm drain improvements, water systems, parks, a fire station, utilities, and
other improvements which benefit the community in general, and the property you are considering purchasing in
particular. These improvements may not yet have been constructed or acquired and it is possible that some may not be
constructed or acquired.
The amount of the Assessment District lien is directly proportional to the estimated benefit your property
receives from the public capital improvements plus the amount of the development impact fees which were imposed on
your prospective new home and which were financed through the Assessment District. The Assessment District lien is in
addition to the regular property taxes and other charges and benefit assessments on the parcel. The Assessment District
lien will be added to the real estate property tax bill distributed annually to each property owner within the Assessment
District boundary. The maximum annual amount of this assessment in fiscal years 20__ to 20__ and following will be
approximately $_______________. If you fail to pay the Assessment District lien when due, the property may be
foreclosed upon and sold.
The estimated total principal amount of Assessment District lien applicable to your home (approximately
$____________) will be fully amortized over a period of _________ years through payments on your real estate tax bill
with interest at a rate equal to approximately ____% per year [insert bond rate]. This assessment is used to finance the
above mentioned public capital improvements and development impact fees, which were required to be paid in order to
allow development on your parcel and which were used to pay for public capital improvements. YOU SHOULD TAKE
THIS LIEN AND THE BENEFITS FROM THE PAYMENT OF THE DEVELOPMENT IMPACT FEES,
PUBLIC CAPITAL IMPROVEMENTS AND THE PUBLIC FACILITIES INTO ACCOUNT IN DECIDING
WHETHER TO PURCHASE THIS PROPERTY.
You have the option to pay off the total amount of the Assessment District lien at any time, plus a bond
redemption fee. If you wish to pay off the lien in total prior to escrow closing, please notify your escrow officer. If an
impound account for taxes and assessments is a requirement of your home loan, you should notify your lender of the total
annual amount of the assessment. The annual cost of the special assessments when added to other amounts on your
consolidated property tax bill, may exceed the amount collected for the impound account.
You may contact the Authority by calling its Assessment Administrator, ___________________ at telephone
number (___) __________ for information concerning the Assessment District or about early assessment district lien
retirement after escrow closing.
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Please acknowledge receipt of this information at or prior to the time of purchase by signing your name in the
space provided below.
Acknowledged:
Date Prospective Buyer
Date Prospective Buyer
Lot No. __________ Tract No. _________________________________________
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Item 12
Meeting Date: 11/13/2018
FROM: Carrie Mattingly, Utilities Director
Prepared By: Lianne Westberg, Assistant Program Manager – WSC
SUBJECT: WATER RESOURCE RECOVERY FACILITY PROJECT CLEAN WATER
STATE REVOLVING FUND LOAN AGREEMENT
RECOMMENDATION
Approve the Clean Water State Revolving Fund loan agreement (Attachment A) between the
City of San Luis Obispo and the California State Water Resources Control Board for $140
million for the Water Resource Recovery Facility Project and authorize the Utilities Director to
execute the agreement.
DISCUSSION
Background
On December 13, 2016, City Council adopted Resolution 10761 (Attachment B) authorizing the
Utilities Director, or her designee, to provide the assurance, certifications and commitments
required for the financial assistance application, including executing a financial assistance
agreement from the State Water Resources Control Board (SWRCB).
The project team has been actively collaborating with the SWCRB since 2014 to get a funding
agreement in place prior to construction of the Water Resource Recovery Facility (WRRF)
Project. On October 15, 2018, the City received the Clean Water State Revolving Fund
(CWSRF) financing agreement (Attachment A) from the SWRCB. This agreement allows the
City to receive up to $140 million in low-interest financing for the WRRF Project. Receipt of the
agreement is a major project milestone and enables the WRRF Project to enter the bidding and
construction phase.
The $140-million loan has a fixed interest rate of 1.8 percent and will be repaid over 30 years
using Sewer Fund user charges and development impact fees. The City’s payment schedule
(Exhibit C of Attachment A) reflects four million dollars in principal loan forgiveness from the
SWRCB’s green project reserve funding. Thus, the total loan principal will be $136 million. The
City is eligible to request reimbursement for project costs incurred to-date. The Sewer Fund
long-range fund analysis has programmed revenues and forecasted cash flow to meet the terms
of the agreement.
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The project budget is $140 million, which includes a 12 percent City-held contingency. The
estimated range of construction costs at 95 percent design is provided below. These costs will be
updated with the 100 percent design documents that are currently in development. Other
construction phase costs will include contingencies and soft costs (such as construction
management, engineering services during construction, and other project support services).
Construction Cost Estimate
Design Milestone Low Median High
95% Design $102,960,000 $114,400,000 $131,560,000
Bidding will take place in late January 2019, with bids due in March 2019. Actual construction
costs will be known once bids are received. Once bids have been evaluated and an award
recommendation has been made, the City will submit the Final Budget Approval packet to the
SWRCB which will allow the City to adjust the loan amount based on the awarded bid. The
maximum loan, however, will not exceed $140 million. The Water Resource Center is included
as an ‘additive alternate’ in the bid package, which will allow the City to separate out this portion
of the project if necessary due to funding constraints.
The project team continues to pursue grants including two grants that are in the approval process
from CalOES and the Integrated Regional Water Management (IRWM) program. Phase 1 of the
CalOES grant has been awarded and will provide $139,766 in grant funding to offset costs of
flood modeling and preparation of the CalOES grant application. Phase 2 of the CalOES grant,
which covers construction costs for the flood management improvements at the WRRF, is still
under FEMA review. If both the CalOES and IRWM grants make it all the way through their
respective processes, they are expected to total about $3 million.
WRRF Project Schedule Overview
The WRRF Project is nearing completion of Final Design (Phase 3), which runs through the award
of the construction contract.
WRRF Project Phases
Phase Schedule Status
Phase 1 – Project Planning January 2014 – June 2015 Complete
Phase 2 – Preliminary Design July 2015 – June 2016 Complete
Phase 3 – Final Design July 2016 – April 2019* Ongoing
Phase 4 – Construction May 2019 – May 2022 Pending
Phase 5 – Close Out June 2022 – August 2022 Pending
*Phase 3 - Final Design includes the bidding and award of the construction contract
Over the next several months, the City Council will be considering and taking action on the
following WRRF Project-related items:
1. Authorization to bid the WRRF Project – December 2018
2. Phase 4 program management services – February 2019
3. Engineering services during construction – February 2019
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ENVIRONMENTAL REVIEW
The Environmental Impact Report (EIR) for the WRRF Project was certified by Council on
August 16, 2016.
CONCURRENCES
Utilities has collaborated with the City Attorney, Finance, Public Works and Community
Development Departments. Outside counsel has assisted the City in the review of the loan
agreement. The Finance Department has been engaged in the financing plan for the project and
supports executing the agreement.
For the project in general, Community Development concurs with the environmental review
findings. The Public Works and Community Development Departments are reviewing the
Building Permit Submittal. Comments will be incorporated into the Bid Set, and the City
Engineer will provide final approval.
FISCAL IMPACT
The City will receive a maximum CWSRF loan of $140 million, with four million dollars of
principal forgiveness. Thus, the principal to be repaid over 30 years will be $136 million.
Payments from the City to the SWRCB will start one year after construction completion. At 1.8
percent interest, the annual payment to the SWRCB will amount to $5,902,954. The payments
will be made using revenues from Sewer Fund user charges and development impact fees. The
Sewer Fund long-range fund analysis has programmed sufficient revenues and adequate cash
flow to meet the terms of the agreement including the required reserve payment.
ALTERNATIVE
Do not approve the execution of the CWSRF agreement. Should City Council select this
alternative, this action would effectively stop the WRRF Project as the favorable project funding
cannot be matched, and the increased interest rate charged by any other funding source would
render the project infeasible.
Attachments:
a – CWSRF Construction Installment Sale Agreement, Project No. C-06-8029-110
b - Resolution-10761 (2016)
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CITY OF SAN LUIS OBISPO
AND
CALIFORNIA STATE WATER RESOURCES CONTROL BOARD
CONSTRUCTION INSTALLMENT SALE AGREEMENT
SAN LUIS OBISPO WATER RESOURCE RECOVERY FACILITY EXPANSION AND IMPROVEMENTS
PROJECT
PROJECT NO. C-06-8029-110
AGREEMENT NO. SWRCB0000000000D180100300
AMOUNT: $140,000,000
ELIGIBLE START DATE: JULY 20, 2018
COMPLETION OF CONSTRUCTION DATE: FEBRUARY 1, 2022
FINAL DISBURSEMENT REQUEST DATE: AUGUST 1, 2022
FINAL REPAYMENT DATE: FEBRUARY 1, 2052
RECORDS RETENTION END DATE: FEBRUARY 1, 2058
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City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
i
TABLE OF CONTENTS
WHEREAS, ................................................................................................................................................... 1
ARTICLE I DEFINITIONS ......................................................................................................................... 1
1.1 Definitions. .......................................................................................................................................... 1
1.2 Exhibits Incorporated.......................................................................................................................... 6
ARTICLE II REPRESENTATIONS, WARRANTIES, AND COMMITMENTS ........................................... 6
2.1 Application and General Recipient Commitments. ............................................................................ 6
2.2 Authorization and Validity. .................................................................................................................. 6
2.3 No Violations. ..................................................................................................................................... 6
2.4 No Litigation. ...................................................................................................................................... 6
2.5 Solvency and Insurance. .................................................................................................................... 7
2.6 Legal Status and Eligibility. ................................................................................................................ 7
2.7 Financial Statements and Continuing Disclosure. ............................................................................. 7
2.8 Completion of Project. ........................................................................................................................ 7
2.9 Award of Construction Contracts. ...................................................................................................... 7
2.10 Notice. ................................................................................................................................................ 7
2.11 Findings and Challenge ..................................................................................................................... 9
2.12 Project Access. .................................................................................................................................. 9
2.13 Project Completion; Initiation of Operations. ..................................................................................... 9
2.14 Continuous Use of Project; Lease, Sale, Transfer of Ownership, or Disposal of Project. ............. 9
2.15 Project Reports. ............................................................................................................................... 10
2.16 Federal Disadvantaged Business Enterprise (DBE) Reporting. ...................................................... 10
2.17 Records............................................................................................................................................ 10
2.18 Audit. ................................................................................................................................................ 11
ARTICLE III FINANCING PROVISIONS ................................................................................................. 12
3.1 Purchase and Sale of Project. .......................................................................................................... 12
3.2 Amounts Payable by the Recipient. ................................................................................................. 12
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City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
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3.3 Obligation Absolute. ......................................................................................................................... 13
3.4 No Obligation of the State. ............................................................................................................... 14
3.5 Disbursement of Project Funds; Availability of Funds. ..................................................................... 14
3.6 Withholding of Disbursements and Material Violations. ................................................................... 15
3.7 Pledge; Rates, Fees and Charges; Additional Debt. ....................................................................... 15
3.8 Financial Management System and Standards. .............................................................................. 16
3.9 Accounting and Auditing Standards. ................................................................................................ 17
3.10 Other Assistance. ......................................................................................................................... 17
ARTICLE IV MISCELLANEOUS PROVISIONS ..................................................................................... 17
4.1 Amendment and Integration. ............................................................................................................ 17
4.2 Assignability. .................................................................................................................................... 17
4.3 Bonding. ........................................................................................................................................... 17
4.4 Competitive Bidding ......................................................................................................................... 17
4.5 Compliance with Law, Regulations, etc. .......................................................................................... 17
4.6 Conflict of Interest. ........................................................................................................................... 18
4.7 Damages for Breach Affecting Tax-Exempt Status or Federal Compliance .................................... 18
4.8 Disputes. .......................................................................................................................................... 18
4.9 Governing Law. ................................................................................................................................ 19
4.10 Income Restrictions. ........................................................................................................................ 19
4.11 Indemnification and State Reviews. ................................................................................................ 19
4.12 Independent Actor. .......................................................................................................................... 19
4.13 Leveraging Covenants. .................................................................................................................... 20
4.14 Non-Discrimination Clause. ............................................................................................................. 20
4.15 No Third Party Rights. ..................................................................................................................... 21
4.16 Operation and Maintenance; Insurance. ......................................................................................... 21
4.17 Permits, Subcontracting, and Remedies. ........................................................................................ 21
4.18 Prevailing Wages. ............................................................................................................................ 22
4.19 Public Funding. ................................................................................................................................ 22
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City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
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4.20 Recipient’s Responsibility for Work. ................................................................................................ 22
4.21 Related Litigation. ............................................................................................................................ 22
4.22 Rights in Data. ................................................................................................................................. 22
4.23 State Water Board Action; Costs and Attorney Fees. ..................................................................... 23
4.24 Termination and Remedies Upon Event of Default. ........................................................................ 23
4.25 Timeliness. ....................................................................................................................................... 24
4.26 Unenforceable Provision.................................................................................................................. 24
4.27 Useful Life. ....................................................................................................................................... 24
4.28 Venue............................................................................................................................................... 24
4.29 Waiver and Rights of the State Water Board................................................................................... 24
ARTICLE V TAX COVENANTS .............................................................................................................. 24
5.1 Purpose. ........................................................................................................................................... 24
5.2 Tax Covenant. .................................................................................................................................. 24
5.3 Governmental Unit. .......................................................................................................................... 25
5.4 Financing of a Capital Project. ......................................................................................................... 25
5.5 Ownership and Operation of Project. ............................................................................................... 25
5.6 Temporary Period. ............................................................................................................................ 25
5.7 Working Capital. ............................................................................................................................... 25
5.8 Expenditure of Proceeds. ................................................................................................................. 25
5.9 Private Use and Private Payments. ................................................................................................. 25
5.10 No Sale, Lease or Private Operation of the Project. ....................................................................... 26
5.11 No Disproportionate or Unrelated Use. ........................................................................................... 26
5.12 Management and Service Contracts. .............................................................................................. 26
5.13 No Disposition of Financed Property. .............................................................................................. 27
5.14 Useful Life of Project. ....................................................................................................................... 27
5.15 Installment Payments. ..................................................................................................................... 27
5.16 No Other Replacement Proceeds. ................................................................................................... 27
5.17 No Sinking or Pledged Fund. ........................................................................................................... 27
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City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
iv
5.18 Reserve Amount. ........................................................................................................................... 27
5.19 Reimbursement Resolution. ........................................................................................................... 28
5.20 Reimbursement Expenditures. ....................................................................................................... 28
5.21 Change in Use of the Project. ........................................................................................................ 28
5.22 Rebate Obligations. ........................................................................................................................ 28
5.23 No Federal Guarantee. .................................................................................................................. 28
5.24 No Notices or Inquiries from IRS. .................................................................................................. 29
5.25 Amendments. ................................................................................................................................. 29
5.26 Reasonable Expectations. ............................................................................................................. 29
EXHIBIT A - SCOPE OF WORK & INCORPORATED DOCUMENTS
EXHIBIT A - FBA –FINAL BUDGET APPROVAL
EXHIBIT B - FUNDING AMOUNT
EXHIBIT C - PAYMENT SCHEDULE
EXHIBIT D - SPECIAL CONDITIONS
EXHIBIT E - PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
EXHIBIT F - SCHEDULE OF SYSTEM OBLIGATIONS
EXHIBIT G - DAVIS-BACON REQUIREMENTS
EXHIBIT H - COMPLIANCE WITH CROSS-CUTTING STATE AUTHORITIES
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City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
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WHEREAS,
1. The State Water Board is authorized to provide financial assistance under this Agreement pursuant to
the following:
• Chapter 6.5 of Division 7 of the California Water Code (State Act)
• Title VI of the federal Water Pollution Control Act (Federal Act)
2. The State Water Board determines eligibility for financial assistance, determines a reasonable
schedule for providing financial assistance, establishes compliance with the Federal Act and the State
Act, and establishes the terms and conditions of a financial assistance agreement.
3. The Recipient has applied to the State Water Board for financial assistance for the Project described
in Exhibit A of this Agreement and the State Water Board has selected the application for financial
assistance.
4. The State Water Board proposes to assist in providing financial assistance for eligible costs of the
Project, and the Recipient desires to participate as a recipient of financial assistance from the State
Water Board and evidence its obligation to pay Installment Payments, which obligation will be
secured by Net Revenues, as defined herein, upon the terms and conditions set forth in this
Agreement, all pursuant to the Federal Act and the State Act.
NOW, THEREFORE, in consideration of the premises and of the mutual representations, covenants and
agreements herein set forth, the State Water Board and the Recipient, each binding itself, its successors
and assigns, do mutually promise, covenant, and agree as follows:
Subject to the satisfaction of any conditions precedent to this Agreement, this Agreement shall become
effective upon the signature of both the Recipient and the State Water Board.
Upon execution, the term of the Agreement shall begin on the Eligible Start Date and extend through the
Final Repayment Date.
ARTICLE I DEFINITIONS
1.1 Definitions.
Unless otherwise specified, each capitalized term used in this Agreement has the following meaning:
"Additional Payments" means the Additional Payments described in Section 3.2(c) of this Agreement.
"Agreement" means this Installment Sale Agreement, including all exhibits and attachments.
"Allowance" means an amount based on a percentage of the accepted bid for an eligible project to help
defray the planning, design, and construction engineering and administration costs of the Project.
"Authorized Representative" means the duly appointed representative of the Recipient as set forth in the
certified original of the Recipient’s authorizing resolution that designates the authorized representative by
title.
"Bank" means the California Infrastructure and Economic Development Bank.
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City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
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“Bond Funded Portion of the Project Funds” means any portion of the Project Funds which was or will be
funded with Bond Proceeds.
“Bond Proceeds” means original proceeds, investment proceeds, and replacement proceeds of Bonds.
"Bonds" means any series of bonds issued by the Bank, the interest on which is excluded from gross
income for federal tax purposes, all or a portion of the proceeds of which have been, are, or will be
applied by the State Water Board to fund all or any portion of the Project Costs or that are secured in
whole or in part by Installment Payments paid hereunder.
"Code" as used in Article V of this Agreement means the Internal Revenue Code of 1986, as amended,
and any successor provisions and the regulations of the U.S. Department of the Treasury promulgated
thereunder.
"Completion of Construction" means the date, as determined by the Division after consultation with the
Recipient, that the work of building and erection of the Project is substantially complete, and is identified
in Exhibit A of this Agreement.
“CWSRF” means the Clean Water State Revolving Fund.
“Days” means calendar days unless otherwise expressly indicated.
“Debt Service” means, as of any date, with respect to outstanding System Obligations and, in the case of
the additional debt tests in Section 3.7 of this Agreement, any System Obligations that are proposed to be
outstanding, the aggregate amount of principal and interest scheduled to become due (either at maturity
or by mandatory redemption), calculated with the following assumptions:
a. Principal payments (unless a different subsection of this definition applies for purposes of
determining principal maturities or amortization) are made in accordance with any
amortization schedule published for such principal, including any minimum sinking fund
payments;
b. Interest on a variable rate System Obligation that is not subject to a swap agreement and
that is issued or will be issued as a tax-exempt obligation under federal law, is the
average of the SIFMA Municipal Swap Index, or its successor index, during the 24
months preceding the date of such calculation;
c. Interest on a variable rate System Obligation that is not subject to a swap agreement and
that is issued or will be issued as a taxable obligation under federal law, is the average of
LIBOR, or its successor index, during the 24 months preceding the date of such
calculation;
d. Interest on a variable rate System Obligation that is subject to a swap agreement is the
fixed swap rate or cap strike rate, as appropriate, if the variable rate has been swapped
to a fixed rate or capped pursuant to an interest rate cap agreement or similar
agreement;
e. Interest on a fixed rate System Obligation that is subject to a swap agreement such that
all or a portion of the interest has been swapped to a variable rate shall be treated as
variable rate debt under subsections (b) or (c) of this definition of Debt Service;
f. Payments of principal and interest on a System Obligation are excluded from the
calculation of Debt Service to the extent such payments are to be paid from amounts
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then currently on deposit with a trustee or other fiduciary and restricted for the
defeasance of such System Obligations;
g. If 25% or more of the principal of a System Obligation is not due until its final stated
maturity, then principal and interest on that System Obligation may be projected to
amortize over the lesser of 30 years or the useful life of the financed asset, and interest
may be calculated according to subsections (b)-(e) of this definition of Debt Service, as
appropriate.
“Deputy Director” means the Deputy Director of the Division.
"Division" means the Division of Financial Assistance of the State Water Board or any other segment of
the State Water Board authorized to administer this Agreement.
“Eligible Start Date” means the date set forth in Exhibit B, establishing the date on or after which
construction costs may be incurred and eligible for reimbursement hereunder.
“Enterprise Fund” means the enterprise fund of the Recipient in which Revenues are deposited.
“Event of Default” means the occurrence of any one or more of the following events:
a) Failure by the Recipient to pay Installment Payments when due, or failure to make any other
payment required to be paid pursuant to this Agreement;
b) A representation or warranty made by or on behalf of the Recipient in this Agreement or in any
document furnished by or on behalf of the Recipient to the State Water Board pursuant to this
Agreement shall prove to have been inaccurate, misleading or incomplete in any material respect;
c) A material adverse change in the condition of the Recipient, the Revenues, or the System, which
the Division reasonably determines would materially impair the Recipient’s ability to satisfy its
obligations under this Agreement.
d) Failure by the Recipient to comply with the additional debt test or reserve fund requirement, if
any, in Section 3.7 or Exhibit D of this Agreement;
e) Failure to operate the System or the Project without the Division’s approval;
f) Failure by the Recipient to observe and perform any covenant, condition, or provision in this
Agreement, which failure shall continue for a period of time, to be determined by the Division;
g) The occurrence of a material breach or event of default under any System Obligation that results
in the acceleration of principal or interest or otherwise requires immediate prepayment,
repurchase or redemption;
h) Initiation of proceedings seeking arrangement, reorganization, or any other relief under any
applicable bankruptcy, insolvency, or other similar law now or hereafter in effect; or the
appointment of or taking possession of the Recipient’s property by a receiver, liquidator,
assignee, trustee, custodian, conservator, or similar official; or the Recipient’s entering into a
general assignment for the benefit of creditors; or any action in furtherance of any of the
foregoing;
i) Initiation of resolutions or proceedings to terminate the Recipient’s existence;
j) A determination pursuant to Gov. Code § 11137 that the Recipient has violated any provision in
Article 9.5 of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code;
“Final Disbursement Request Date” means the date established in Exhibit A, after which date, no further
Project Funds disbursements may be requested.
“Final Repayment Date” is the date by which all principal and accrued interest due under this Agreement
is to be paid in full to the State Water Board and is specified in Exhibit B and Exhibit C.
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"Fiscal Year" means the period of twelve (12) months terminating on June 30 of any year, or any other
annual period selected and designated by the Recipient as its Fiscal Year in accordance with applicable
law.
"Force Account" means the use of the Recipient's own employees or equipment.
“GAAP” means generally accepted accounting principles, the uniform accounting and reporting
procedures set forth in publications of the American Institute of Certified Public Accountants or its
successor, or by any other generally accepted authority on such procedures, and includes, as applicable,
the standards set forth by the Governmental Accounting Standards Board or its successor.
“Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than
one cost objective and are not readily assignable to the Project (i.e., costs that are not directly related to
the Project). Examples of Indirect Costs include, but are not limited to: central service costs; general
administration of the Recipient; non-project-specific accounting and personnel services performed within
the Recipient organization; depreciation or use allowances on buildings and equipment; the costs of
operating and maintaining non-project-specific facilities; tuition and conference fees; generic overhead or
markup; and taxes.
"Initiation of Construction" means the date that notice to proceed with work is issued for the Project, or, if
notice to proceed is not required, the date of commencement of building and erection of the Project.
"Installment Payments" means Installment Payments due and payable by the Recipient to the State
Water Board under this Agreement, the amounts of which are set forth as Exhibit C hereto, or as may be
set forth in the final payment schedule forwarded to Recipient after all disbursements have been paid and
construction of the Project has been completed.
“Listed Event” means, so long as the Recipient has outstanding any System Obligation subject to Rule
15c2-12, any of the events required to be reported pursuant to Rule 15c2-12(b)(5).
“Maximum Annual Debt Service” means the maximum amount of Debt Service due on System
Obligations in any Fiscal Year during the period commencing with the Fiscal Year for which such
calculation is made and terminating with the last Fiscal Year in which Debt Service for any System
Obligations will become due.
"Net Revenues" means, for any Fiscal Year, all Revenues received by the Recipient less the Operations
and Maintenance Costs for such Fiscal Year.
"Obligation" means the obligation of the Recipient to make Installment Payments and Additional
Payments as provided herein, as evidenced by the execution of this Agreement, proceeds of such
obligations being used to fund the Project as specified in the Project Description in Exhibit A and Exhibit A-
FBA and in the documents thereby incorporated by reference.
"Operations and Maintenance Costs" means the reasonable and necessary costs paid or incurred by the
Recipient for maintaining and operating the System, determined in accordance with GAAP, including all
reasonable expenses of management and repair and all other expenses necessary to maintain and
preserve the System in good repair and working order, and including all reasonable and necessary
administrative costs of the Recipient that are charged directly or apportioned to the operation of the
System, such as salaries and wages of employees, overhead, taxes (if any), the cost of permits, licenses,
and charges to operate the System and insurance premiums; but excluding, in all cases depreciation,
replacement, and obsolescence charges or reserves therefor and amortization of intangibles.
“Other Material Obligation” means an obligation of the Recipient set forth in Exhibit F that is not payable
from Net Revenues, but is otherwise material to this transaction.
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"Policy" means the State Water Board's “Policy for Implementing the Clean Water State Revolving Fund,”
as amended from time to time, and including the Intended Use Plan in effect as of the Eligible Start Date.
“Project” means the Project financed by this Agreement as described in Exhibit A, Exhibit A-FBA, and in
the documents incorporated by reference herein.
"Project Completion" means the date, as determined by the Division after consultation with the Recipient,
that operation of the Project is initiated or is capable of being initiated, whichever comes first.
"Project Costs" means the incurred costs of the Recipient which are eligible for financial assistance under
this Agreement, which are allowable costs as defined under the Policy, and which are reasonable,
necessary and allocable by the Recipient to the Project under GAAP, plus capitalized interest.
“Project Funds” means all moneys disbursed to the Recipient by the State Water Board pursuant to this
Agreement.
“Project Manager” means the person designated by the State Water Board to manage performance of the
Agreement.
“Recipient” means the City of San Luis Obispo.
“Records Retention End Date” means the last date that the Recipient is obligated to maintain records
pursuant to Section 2.17 of this Agreement.
“Regional Water Quality Control Board” or “Regional Water Board” means the appropriate Regional Water
Quality Control Board.
“Reimbursement Resolution” means the Recipient’s reimbursement resolution identified in Exhibit A of
this Agreement.
“Reserve Fund” means the reserve fund required pursuant to Section 3.7 of this Agreement.
"Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the
Recipient from the ownership or operation of the System, determined in accordance with GAAP, including
all rates, fees, and charges (including connection fees and charges) as received by the Recipient for the
services of the System, and all other income and revenue howsoever derived by the Recipient from the
ownership or operation of the System or arising from the System, including all income from the deposit or
investment of any money in the Enterprise Fund or any rate stabilization fund of the Recipient or held on
the Recipient’s behalf, and any refundable deposits made to establish credit, and advances or
contributions in aid of construction.
“Rule 15c2-12(b)(5)” means Rule 15c2-12(b)(5) promulgated by the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as amended.
“SRF” means the Clean Water State Revolving Fund.
“State” means State of California.
“State Water Board” means the State Water Resources Control Board.
"System" means all wastewater collection, pumping, transport, treatment, storage, and disposal facilities,
including land and easements thereof, owned by the Recipient, including the Project, and all other
properties, structures, or works hereafter acquired and constructed by the Recipient and determined to be
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a part of the System, together with all additions, betterments, extensions, or improvements to such
facilities, properties, structures, or works, or any part thereof hereafter acquired and constructed.
“System Obligation” means any obligation of the Recipient payable from the Revenues, including but not
limited to this Obligation and obligations reflected in Exhibit F and such additional obligations as may
hereafter be issued in accordance with the provisions of such obligations and this Agreement.
“Year” means calendar year unless otherwise expressly indicated.
1.2 Exhibits Incorporated.
All exhibits to this Agreement, including any amendments and supplements hereto, are hereby incorporated
herein and made a part of this Agreement.
ARTICLE II REPRESENTATIONS, WARRANTIES, AND COMMITMENTS
The Recipient represents, warrants, and commits to the following as of the Eligible Start Date set forth on
the first page hereof and continuing thereafter for the term of this Agreement.
2.1 Application and General Recipient Commitments.
The Recipient has not made any untrue statement of a material fact in its application for this financial
assistance, or omitted to state in its application a material fact that makes the statements in its application
not misleading.
The Recipient shall comply with all terms, provisions, conditions, and commitments of this Agreement,
including all incorporated documents, and shall fulfill all assurances, declarations, representations, and
commitments in its application, accompanying documents, and communications filed in support of its
request for financial assistance.
2.2 Authorization and Validity.
The execution and delivery of this Agreement, including all incorporated documents, has been
duly authorized by the Recipient. Upon execution by both parties, this Agreement constitutes a
valid and binding obligation of the Recipient, enforceable in accordance with its terms, except as
such enforcement may be limited by law.
2.3 No Violations.
The execution, delivery, and performance by Recipient of this Agreement, including all
incorporated documents, do not violate any provision of any law or regulation in effect as of the
date set forth on the first page hereof, or result in any breach or default under any contract,
obligation, indenture, or other instrument to which Recipient is a party or by which Recipient is bound
as of the date set forth on the first page hereof.
2.4 No Litigation.
As of the date of the execution of this Agreement, there are no current pending or, to Recipient’s
knowledge, threatened actions, claims, investigations, suits, or proceedings before any
governmental authority, court, or administrative agency which materially affect the financial
condition or operations of the Recipient, the System , the Revenues, and/or the Project.
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2.5 Solvency and Insurance.
None of the transactions contemplated by this Agreement will be or have been made with an actual intent
to hinder, delay, or defraud any present or future creditors of Recipient. As of the date set forth on the first
page hereof, Recipient is solvent and will not be rendered insolvent by the transactions contemplated by
this Agreement. Recipient is able to pay its debts as they become due. Recipient maintains sufficient
insurance coverage considering the scope of this Agreement, including, for example but not necessarily
limited to, general liability, automobile liability, workers compensation and employers liability, professional
liability.
2.6 Legal Status and Eligibility.
Recipient is duly organized and existing and in good standing under the laws of the State of California.
Recipient shall at all times maintain its current legal existence and preserve and keep in full force and
effect its legal rights and authority. Recipient shall maintain its eligibility for funding under this Agreement.
2.7 Financial Statements and Continuing Disclosure.
The financial statements of Recipient previously delivered to the State Water Board as of the date(s) set
forth in such financial statements: (a) are materially complete and correct; (b) present fairly the financial
condition of the Recipient; and (c) have been prepared in accordance with GAAP. Since the date(s) of
such financial statements, there has been no material adverse change in the financial condition of the
Recipient, nor have any assets or properties reflected on such financial statements been sold,
transferred, assigned, mortgaged, pledged or encumbered, except as previously disclosed in writing by
Recipient and approved in writing by the State Water Board.
The Recipient is current in its continuing disclosure obligations associated with its material debt.
2.8 Completion of Project.
The Recipient shall expeditiously proceed with and complete construction of the Project in substantial
accordance with Exhibit A and Exhibit A-FBA.
2.9 Award of Construction Contracts.
(a) The Recipient shall award the prime construction contract timely in order to meet the start of
construction date specified in Exhibit A.
(b) The Recipient shall promptly notify the Division in writing, via mail or email, both of the award of
the prime construction contract for the Project and of Initiation of Construction of the Project. The
Recipient shall make all reasonable efforts to complete construction in substantial conformance
with the terms of the contract by the Completion of Construction date established in Exhibit A.
2.10 Notice.
(a) The Recipient shall notify the Deputy Director Division and the Project Manager in writing, via
mail or email, within five (5) working days of the occurrence of any of the following events:
1) Bankruptcy, insolvency, receivership or similar event of the Recipient, or actions taken in
anticipation of any of the foregoing;
2) Change of ownership of the System or change of management or service contracts, if
any, for operation of the System;
3) Material loss, theft, damage, or impairment to the Revenues or the System;
4) Failure to meet any debt service coverage test in section 10 of this Agreement;
5) Unscheduled draws on the Reserve Fund;
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6) Listed Events or Events of Default, except as set forth in subdivisions (b) or (c) of this
section; or
7) Failure to observe or perform any covenant in this Agreement.
(b) The Recipient shall notify the Deputy Director of the Division and the Project Manager in writing
within ten (10) working days of the following:
1) Material defaults on System Obligations, other than this Obligation;
2) Unscheduled draws on debt service reserves held for System Obligations, other than this
Obligation, if any, reflecting financial difficulties;
3) Unscheduled draws on credit enhancements on System Obligations, if any, reflecting
financial difficulties;
4) Substitution of credit or liquidity providers, if any or their failure to perform;
5) Any litigation pending or threatened with respect to the Project or the Recipient’s
technical, managerial or financial capacity to operate the System or the Recipient’s
continued existence, circulation of a petition to repeal, reduce, or otherwise challenge the
Recipient’s rates for services of the System, or any other event that could materially
impair the Revenues;
6) Adverse tax opinions, the issuance by the Internal Revenue Service or proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other
material notices of determinations with respect to the tax status of any tax-exempt bonds;
7) Rating changes on outstanding System Obligations, if any;
8) Issuance of additional parity obligations; or
9) Any enforcement actions by the Regional Water Board;
(c) The Recipient shall notify the Division promptly, within three (3) working days, of the following:
(1) The discovery of a false statement of fact or representation made in this Agreement or in the
application to the Division for this financial assistance, or in any certification, report, or
request for disbursement made pursuant to this Agreement, by the Recipient, its employees,
agents, or contractors;
(2) Any substantial change in scope of the Project. The Recipient shall undertake no substantial
change in the scope of the Project until prompt written notice of the proposed change has
been provided to the Division and the Division has given written approval for the change;
(3) Cessation of all major construction work on the Project where such cessation of work is
expected to or does extend for a period of thirty (30) days or more;
(4) Any circumstance, combination of circumstances, or condition, which is expected to or does
delay Completion of Construction for a period of ninety (90) days or more beyond the
estimated date of Completion of Construction as specified in Exhibit A;
(5) Discovery of any unexpected endangered or threatened species, as defined in the federal
Endangered Species Act. Should a federally protected species be unexpectedly encountered
during construction of the Project, the Recipient agrees to promptly notify the Division. This
notification is in addition to the Recipient’s obligations under the federal Endangered Species
Act;
(6) Any Project monitoring, demonstration, or other implementation activities required in Exhibit A
or Exhibit D of this Agreement, if any;
(7) Any public or media event publicizing the accomplishments and/or results of this Agreement
and provide the opportunity for attendance and participation by state representatives with at
least ten (10) working days’ notice to the Division;
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(8) Any events requiring notice to the Division pursuant to the provisions of Exhibit E to this
Agreement; or
(9) Completion of Construction of the Project, and actual Project Completion.
(d) The Recipient shall notify the Division within 24 hours of any discovery of any potential tribal
cultural resource and/or archeological or historical resource. Notice shall be addressed to the
Deputy Director of the Division and to Ahmad Kashkoli at Ahmad.Kashkoli@waterboards.ca.gov
and via phone at (916) 341-5855. Should a potential tribal cultural resource and/or archeological
or historical resource be discovered during construction, the Recipient shall ensure that all work
in the area of the find will cease until a qualified archeologist has evaluated the situation and
made recommendations regarding preservation of the resource, and the Division has determined
what actions should be taken to protect and preserve the resource. The Recipient shall
implement appropriate actions as directed by the Division.
2.11 Findings and Challenge
Upon consideration of a voter initiative to reduce Revenues, the Recipient shall make a finding regarding
the effect of such a reduction on the Recipient's ability to satisfy the rate covenant set forth in Section 3.7
of this Agreement. The Recipient shall make its findings available to the public and shall request, if
necessary, the authorization of the Recipient’s decision-maker or decision-making body to file litigation to
challenge any such initiative that it finds will render it unable to satisfy the rate covenant set forth in
Section 3.7 and its obligation to operate and maintain the Project for its useful life. The Recipient shall
diligently pursue and bear any and all costs related to such challenge. The Recipient shall notify and
regularly update the State Water Board regarding the status of any such challenge.
2.12 Project Access.
The Recipient shall ensure that the State Water Board, the Governor of the State, the United States
Environmental Protection Agency, the Office of Inspector General, any member of Congress, or any
authorized representative of the foregoing, will have safe and suitable access to the Project site at all
reasonable times during Project construction and thereafter for the term of the Obligation. The Recipient
acknowledges that, except for a subset of information regarding archaeological records, the Project
records and locations are public records, including but not limited to all of the submissions accompanying
the application, all of the documents incorporated by Exhibit A and Exhibit A-FBA, and all reports,
disbursement requests, and supporting documentation submitted hereunder.
2.13 Project Completion; Initiation of Operations.
Upon Completion of Construction of the Project, the Recipient shall expeditiously initiate Project
operations.
2.14 Continuous Use of Project; Lease, Sale, Transfer of Ownership, or Disposal of Project.
The Recipient agrees that, except as provided in this Agreement, it will not abandon, substantially
discontinue use of, lease, sell, transfer ownership of, or dispose of all or a significant part or portion of the
Project during the useful life of the Project without prior written approval of the Division. Such approval
may be conditioned as determined to be appropriate by the Division, including a condition requiring
repayment of all disbursed Project Funds or all or any portion of all remaining funds covered by this
Agreement together with accrued interest and any penalty assessments that may be due.
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2.15 Project Reports.
(a) Status Reports. The Recipient shall provide status reports no less frequently than quarterly,
starting with the execution of this Agreement. A status report must accompany any disbursement
request and is a condition precedent to any disbursement. At a minimum, the reports will contain
the following information:
(1) A summary of progress to date including a description of progress since the last report,
percent construction complete, percent contractor invoiced, and percent schedule
elapsed;
(2) A description of compliance with environmental requirements;
(3) A listing of change orders including the dollar amount, description of work, and change in
contract amount and schedule; and
(4) Any problems encountered, proposed resolution, schedule for resolution, and status of
previous problem resolutions.
(b) Project Completion Report. The Recipient shall submit a Project Completion Report to the
Division with a copy to the appropriate Regional Water Board on or before the due date
established by the Division and the Recipient at the time of final project inspection. The Project
Completion Report must address the following:
(1) Describe the Project,
(2) Describe the water quality problem the Project sought to address,
(3) Discuss the Project’s likelihood of successfully addressing that water quality problem in
the future, and
(4) Summarize compliance with environmental conditions, if applicable.
If the Recipient fails to submit a timely Project Completion Report, the State Water
Board may stop processing pending or future applications for new financial assistance,
withhold disbursements under this Agreement or other agreements, and begin
administrative proceedings.
(c) As Needed Reports. The Recipient shall provide expeditiously, during the term of this
Agreement, any reports, data, and information reasonably required by the Division, including but
not limited to material necessary or appropriate for evaluation of the funding program or to fulfill
any reporting requirements of the state or federal government.
2.16 Federal Disadvantaged Business Enterprise (DBE) Reporting.
The Recipient shall report DBE utilization to the Division on the DBE Utilization Report, State Water Board
Form DBE UR334. The Recipient must submit such reports to the Division annually within ten (10)
calendar days following October 1 until such time as the "Notice of Completion" is issued. The Recipient
shall comply with 40 CFR § 33.301.
2.17 Records.
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(a) Without limitation of the requirement to maintain Project accounts in accordance with GAAP, the
Recipient shall:
(1) Establish an official file for the Project which adequately documents all significant
actions relative to the Project;
(2) Establish separate accounts which will adequately and accurately depict all amounts
received and expended on the Project, including all assistance funds received under this
Agreement;
(3) Establish separate accounts which will adequately depict all income received which is
attributable to the Project, specifically including any income attributable to assistance
funds disbursed under this Agreement;
(4) Establish an accounting system which will accurately depict final total costs of the
Project, including both direct and Indirect Costs;
(5) Establish such accounts and maintain such records as may be necessary for the State to
fulfill federal reporting requirements, including any and all reporting requirements under
federal tax statutes or regulations; and
(6) If a Force Account is used by the Recipient for any phase of the Project, other than for
planning, design, and construction engineering and administration provided for by
allowance, accounts will be established which reasonably document all employee hours
charged to the Project and the associated tasks performed by each employee. Force
Account Indirect Costs are not eligible for funding.
(b) The Recipient shall maintain separate books, records and other material relative to the Project.
The Recipient shall also retain such books, records, and other material for itself and for each
contractor or subcontractor who performed or performs work on the Project for a minimum of
thirty-six (36) years after Completion of Construction. The Recipient shall require that such books,
records, and other material are subject at all reasonable times (at a minimum during normal
business hours) to inspection, copying, and audit by the State Water Board, the California State
Auditor, the Bureau of State Audits, the United States Environmental Protection Agency
(USEPA), the Office of Inspector General, the Internal Revenue Service, the Governor, or any
authorized representatives of the aforementioned. The Recipient shall allow and shall require its
contractors to allow interviews during normal business hours of any employees who might
reasonably have information related to such records. The Recipient agrees to include a similar
duty regarding audit, interviews, and records retention in any contract or subcontract related to
the performance of this Agreement. The provisions of this section shall survive the discharge of
the Recipient's Obligation and the term of this Agreement.
2.18 Audit.
(a) The Division may call for an audit of financial information relative to the Project if the Division
determines that an audit is desirable to assure program integrity or if an audit becomes necessary
because of state or federal requirements. If an audit is called for, the audit shall be performed by
a certified public accountant independent of the Recipient and at the cost of the Recipient. The
audit shall be in the form required by the Division
(b) Audit disallowances will be returned to the State Water Board.
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ARTICLE III FINANCING PROVISIONS
3.1 Purchase and Sale of Project.
The Recipient hereby sells to the State Water Board and the State Water Board hereby purchases from
the Recipient the Project. Simultaneously therewith, the Recipient hereby purchases from the State
Water Board, and the State Water Board hereby sells to the Recipient, the Project in accordance with the
provisions of this Agreement. All right, title, and interest in the Project shall immediately vest in the
Recipient on the date of execution and delivery of this Agreement by both parties without further action on
the part of the Recipient or the State Water Board. The State Water Board’s disbursement of funds
hereunder is contingent on the Recipient’s compliance with the terms and conditions of this Agreement.
3.2 Amounts Payable by the Recipient.
(a) Installment Payments. Interest will accrue beginning with each disbursement. Beginning one
year after Completion of Construction, repayment of the principal of the Project Funds, together
with all interest accruing thereon, shall be repaid annually, and shall be fully amortized by the
Final Repayment Date.
The Installment Payments are based on a standard fully amortized assistance amount with equal
annual payments. The remaining balance is the previous balance, plus the disbursements, plus
the accrued interest on both, less the Installment Payment. Installment Payment calculations will
be made beginning one (1) year after Completion of Construction. Exhibit C is a payment
schedule based on the provisions of this article and an estimated disbursement schedule. Actual
payments will be based on actual disbursements.
Upon Completion of Construction and submission of necessary reports by the Recipient, the
Division will prepare an appropriate payment schedule and supply the same to the Recipient. The
Division may amend this schedule as necessary to accurately reflect amounts due under this
Agreement. The Division will prepare any necessary amendments to the payment schedule and
send them to the Recipient.
The Recipient shall make each Installment Payment on or before the due date therefor. A ten (10)
day grace period will be allowed, after which time a penalty in the amount of costs incurred by the
State Water Board will be assessed for late payment. These costs may include, but are not
limited to, lost interest earnings, staff time, bond debt service default penalties, if any, and other
related costs. For purposes of penalty assessment, payment will be deemed to have been made
if payment is deposited in the U.S. Mail within the grace period with postage prepaid and properly
addressed. Any penalties assessed will not be added to the assistance amount balance, but will
be treated as a separate account and obligation of the Recipient. The interest penalty will be
assessed from the payment due date.
The Recipient is obligated to make all payments required by this Agreement to the State Water
Board, notwithstanding any individual default by its constituents or others in the payment to the
Recipient of fees, charges, taxes, assessments, tolls or other charges ("Charges") levied or
imposed by the Recipient. The Recipient shall provide for the punctual payment to the State
Water Board of all amounts which become due under this Agreement and which are received
from constituents or others in the payment to the Recipient. In the event of failure, neglect or
refusal of any officer of the Recipient to levy or cause to be levied any Charge to provide payment
by the Recipient under this Agreement, to enforce or to collect such Charge, or to pay over to the
State Water Board any money collected on account of such Charge necessary to satisfy any
amount due under this Agreement, the State Water Board may take such action in a court of
competent jurisdiction as it deems necessary to compel the performance of all duties relating to
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the imposition or levying and collection of any of such Charges and the payment of the money
collected therefrom to the State Water Board. Action taken pursuant hereto shall not deprive the
State Water Board of, or limit the application of, any other remedy provided by law or by this
Agreement.
Each Installment Payment shall be paid in lawful money of the United States of America by check
or other acceptable form of payment set forth at www.waterboards.ca.gov/make_a_payment.
The Recipient shall not be entitled to interest earned on undisbursed funds. Upon execution of
this Agreement, the State Water Board shall encumber an amount equal to the Obligation. The
Recipient shall pay Installment Payments and Additional Payments from Net Revenues and/or
other amounts legally available to the Recipient therefor. Interest on any funds disbursed to the
Recipient shall begin to accrue as of the date of each disbursement.
(b) Project Costs. The Recipient shall pay any and all costs connected with the Project including,
without limitation, any and all Project Costs. If the Project Funds are not sufficient to pay the
Project Costs in full, the Recipient shall nonetheless complete the Project and pay that portion of
the Project Costs in excess of available Project Funds, and, unless otherwise agreed to by the
State Water Board, shall not be entitled to any reimbursement therefor from the State Water
Board.
(c) Additional Payments. In addition to the Installment Payments required to be made by the
Recipient, the Recipient shall also pay to the State Water Board the reasonable extraordinary
fees and expenses of the State Water Board, and of any assignee of the State Water Board's
right, title, and interest in and to this Agreement, in connection with this Agreement, including all
expenses and fees of accountants, trustees, staff, contractors, consultants, costs, insurance
premiums and all other extraordinary costs reasonably incurred by the State Water Board or
assignee of the State Water Board.
Additional Payments may be billed to the Recipient by the State Water Board from time to time,
together with a statement executed by a duly authorized representative of the State Water Board,
stating that the amounts billed pursuant to this section have been incurred by the State Water
Board or its assignee for one or more of the above items and a copy of the invoice or statement
for the amount so incurred or paid. Amounts so billed shall be paid by the Recipient within thirty
(30) days after receipt of the bill by the Recipient.
(d) The Recipient may not prepay any portion of the principal and interest due under this Agreement
without the written consent of the Deputy Director of the Division.
3.3 Obligation Absolute.
The obligation of the Recipient to make the Installment Payments and other payments required to be
made by it under this Agreement from Net Revenues and/or other amounts legally available to the
Recipient therefor, is absolute and unconditional, and until such time as the Installment Payments and
Additional Payments have been paid in full, the Recipient shall not discontinue or suspend any
Installment Payments or other payments required to be made by it hereunder when due, whether or not
the System or any part thereof is operating or operable or has been completed, or its use is suspended,
interfered with, reduced or curtailed or terminated in whole or in part, and such Installment Payments and
other payments shall not be subject to reduction whether by offset or otherwise and shall not be
conditional upon the performance or nonperformance by any party of any agreement for any cause
whatsoever.
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3.4 No Obligation of the State.
Any obligation of the State Water Board herein contained shall not be an obligation, debt, or liability of the
State and any such obligation shall be payable solely out of the moneys encumbered pursuant to this
Agreement.
3.5 Disbursement of Project Funds; Availability of Funds.
(a) Except as may be otherwise provided in this Agreement, disbursement of Project Funds will be
made as follows:
(1) Upon execution and delivery of this Agreement by both parties, the Recipient may request
immediate disbursement of any eligible incurred planning and design allowance as
specified in Exhibit B from the Project Funds through submission to the State Water Board
of the Disbursement Request Form 260, or any amendment thereto, duly completed and
executed.
(2) The Recipient may request disbursement of eligible construction and equipment costs
consistent with budget amounts referenced in Exhibit B and Exhibit A-FBA. (Note that this
Agreement will be amended to incorporate Exhibit A-FBA after final budget approval.)
(3) Additional Project Funds will be promptly disbursed to the Recipient upon receipt of
Disbursement Request Form 260, or any amendment thereto, duly completed and
executed by the Recipient for incurred costs consistent with this Agreement, along with
receipt of status reports due under Section 2.15 above.
(4) The Recipient shall not request disbursement for any Project Cost until such cost has been
incurred and is currently due and payable by the Recipient, although the actual payment of
such cost by the Recipient is not required as a condition of disbursement request.
(5) Recipient shall spend Project Funds within thirty (30) days of receipt. Any interest earned
on Project Funds shall be reported to the State Water Board and may be required to be
returned to the State Water Board or deducted from future disbursements.
(6) The Recipient shall not be entitled to interest earned on undisbursed funds.
(7) The Recipient shall not request a disbursement unless that Project Cost is allowable,
reasonable, and allocable.
(8) Notwithstanding any other provision of this Agreement, no disbursement shall be required
at any time or in any manner which is in violation of or in conflict with federal or state laws,
policies, or regulations.
(b) The State Water Board's obligation to disburse Project Funds is contingent upon the availability of
sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available
for any reason, including but not limited to failure of the federal or State government to appropriate
funds necessary for disbursement of Project Funds, the State Water Board shall not be obligated to
make any disbursements to the Recipient under this Agreement. This provision shall be construed
as a condition precedent to the obligation of the State Water Board to make any disbursements
under this Agreement. Nothing in this Agreement shall be construed to provide the Recipient with a
right of priority for disbursement over any other agency. If any disbursements due the Recipient
under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the
State Water Board that such disbursement will be made to the Recipient when sufficient funds do
become available, but this intention is not binding.
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3.6 Withholding of Disbursements and Material Violations.
Notwithstanding any other provision of this Agreement, the State Water Board may withhold the
disbursement of all or any portion of the Project Funds upon the occurrence of any of the following
events:
a. The Recipient’s failure to maintain reasonable progress on the Project;
b. Placement on the ballot or passage of an initiative or referendum to repeal or reduce the
Recipient’s taxes, assessments, fees, or charges levied for operation of the System or
repayment of debt service on System Obligations;
c. Commencement of litigation or a judicial or administrative proceeding related to the
System, Project, or Revenues that the State Water Board determines may impair the
timely completion of the Project or the repayment of the Obligation;
d. Any investigation by the District Attorney, California State Auditor, Bureau of State Audits,
United States Environmental Protection Agency’s Office of Inspector General, the Internal
Revenue Service, Securities and Exchange Commission, a grand jury, or any other state
or federal agency, relating to the Recipient’s financial management, accounting
procedures, or internal fiscal controls;
e. A material adverse change in the condition of the Recipient, the Revenues, or the
System, which the Division reasonably determines would materially impair the Recipient’s
ability to satisfy its obligations under this Agreement, or any other event that the Division
reasonably determines would materially impair the Recipient’s ability to satisfy its
obligations under this Agreement,
f. The Recipient’s material violation of, or threat to materially violate, any term of this
Agreement; and
g. An Event of Default.
3.7 Pledge; Rates, Fees and Charges; Additional Debt.
(a) Establishment of Enterprise Fund and Reserve Fund. In order to carry out its System
Obligations, the Recipient covenants that it shall establish and maintain or shall have established
and maintained the Enterprise Fund. All Revenues received shall be deposited when and as
received in trust in the Enterprise Fund. As required in paragraph (f) of this Section, the Recipient
shall establish and maintain a Reserve Fund.
(b) Pledge of Net Revenues, Enterprise Fund, and Reserve Fund. The Obligation hereunder shall be
secured by a lien on and pledge of the Enterprise Fund, Net Revenues, and any Reserve Fund in
priority as specified in Exhibit F (senior, parity, or subordinate). The Recipient hereby pledges
and grants such lien on and pledge of the Enterprise Fund, Net Revenues, and any Reserve
Fund to secure the Obligation, including payment of Installment Payments and Additional
Payments hereunder. The Net Revenues in the Enterprise Fund, shall be subject to the lien of
such pledge without any physical delivery thereof or further act, and the lien of such pledge shall
be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise
against the Recipient.
(c) Application and Purpose of the Enterprise Fund. Subject to the provisions of any outstanding
System Obligation, money on deposit in the Enterprise Fund shall be applied and used first, to
pay Operations and Maintenance Costs, and thereafter, all amounts due and payable with
respect to the System Obligations. After making all payments hereinabove required to be made
in each Fiscal Year, the Recipient may expend in such Fiscal Year any remaining money in the
Enterprise Fund for any lawful purpose of the Recipient, including payment of subordinate debt.
(d) Rates, Fees and Charges.
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The Recipient shall, to the extent permitted by law, fix, prescribe and collect rates, fees and
charges for the System during each Fiscal Year which are reasonable, fair, and nondiscriminatory
and which will be sufficient to generate Revenues in the amounts necessary to cover Operations
and Maintenance Costs, and shall ensure that Net Revenues are equal to at least 110% the
Maximum Annual Debt Service with respect to all outstanding System Obligations.
The Recipient may make adjustments from time to time in such fees and charges and may make
such classification thereof as it deems necessary, but shall not reduce the rates, fees and
charges then in effect unless the Net Revenues from such reduced rates, fees, and charges will
at all times be sufficient to meet the requirements of this section.
(e) Additional Debt Test.
(1) Additional Senior Debt. The Recipient’s future debt that is secured by the Net Revenues
pledged herein may not be senior to this Obligation, except where the new senior obligation
refunds or refinances a senior obligation with the same lien position as the existing senior
obligation, the new senior obligation has the same or earlier repayment term as the refunded
senior debt, the new senior debt service is the same or lower than the existing debt service,
and the new senior debt will not diminish the Recipient’s ability to repay its SRF obligations.
(2) Additional Parity or Subordinate Debt. The Recipient may issue additional parity or
subordinate debt only if
(A) Net Revenues in the most recent Fiscal Year, excluding transfers from a rate stabilization
fund, if any, meet the ratio for rate covenants set forth in paragraph (d) of this Section with
respect to all outstanding and proposed additional obligations;
(B) The Recipient is in compliance with any reserve fund requirement of this Obligation.
(f) Reserve Fund.
Prior to Completion of Construction, the Recipient shall establish a restricted Reserve Fund, held
in its Enterprise Fund, equal to one year’s Debt Service on this Obligation. The Recipient shall
maintain the Reserve Fund throughout the term of this Agreement. The Reserve Fund shall be
subject to lien and pledged as security for this Obligation, and its use shall be restricted to
payment of this Obligation during the term of this Agreement.
(g) The Recipient may issue or incur subordinate obligations or otherwise issue or incur obligations
payable from a lien on Net Revenues that is subordinate to the lien of Net Revenues securing the
Obligation.
(h) The Recipient shall not make any pledge of or place any lien on Revenues and shall not make
any pledge of or place any lien on Net Revenues except as otherwise provided or permitted by
this Agreement.
3.8 Financial Management System and Standards.
The Recipient shall comply with federal standards for financial management systems. The Recipient
agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit
preparation of reports required by the federal government and tracking of Project funds to a level of
expenditure adequate to establish that such funds have not been used in violation of federal or State law
or the terms of this Agreement. To the extent applicable, the Recipient shall be bound by, and comply
with, the provisions and requirements of the federal Single Audit Act of 1984, Office of Management and
Budget (OMB) Circular No. A-133 and 2 CFR Part 200, subpart F, and updates or revisions, thereto.
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3.9 Accounting and Auditing Standards.
The Recipient must maintain Project accounts according to GAAP as issued by the Governmental
Accounting Standards Board (GASB) or its successor. The Recipient shall maintain GAAP-compliant
project accounts, including GAAP requirements relating to the reporting of infrastructure assets.
3.10 Other Assistance.
If funding for Project Costs is made available to the Recipient from sources other than this Agreement,
the Recipient shall notify the Division. The Recipient may retain such funding up to an amount which
equals the Recipient's local share of Project Costs. To the extent allowed by requirements of other
funding sources, excess funding shall be remitted to the State Water Board to be applied to Installment
Payments due hereunder, if any.
ARTICLE IV MISCELLANEOUS PROVISIONS
4.1 Amendment and Integration.
No amendment or variation of the terms of this Agreement shall be valid unless made in writing and
signed by both the Recipient and the Deputy Director or designee.
This Agreement constitutes the complete and final agreement between the parties. No prior oral or
written understanding or agreement not incorporated in this Agreement shall be binding on either party.
4.2 Assignability.
The Recipient consents to any pledge, sale, or assignment to the Bank or a trustee for the benefit of the
owners of the Bonds, if any, at any time of any portion of the State Water Board's estate, right, title, and
interest and claim in, to and under this Agreement and the right to make all related waivers and
agreements in the name and on behalf of the State Water Board, as agent and attorney-in-fact, and to
perform all other related acts which are necessary and appropriate under this Agreement, if any, and the
State Water Board's estate, right, title, and interest and claim in, to and under this Agreement to
Installment Payments (but excluding the State Water Board's rights to Additional Payments and to
notices, opinions and indemnification under each Obligation). This Agreement is not assignable by the
Recipient, either in whole or in part, without the consent of the State Water Board in the form of a formal
written amendment to this Agreement.
4.3 Bonding.
Where contractors are used, the Recipient shall not authorize construction to begin until each contractor
has furnished a performance bond in favor of the Recipient in the following amounts: faithful performance
(100%) of contract value; labor and materials (100%) of contract value. This requirement shall not apply
to any contract for less than $25,000.00.
4.4 Competitive Bidding
Recipient shall adhere to any applicable State law or local ordinance for competitive bidding and
applicable labor laws.
4.5 Compliance with Law, Regulations, etc.
The Recipient shall, at all times, comply with and require its contractors and subcontractors to comply
with all applicable federal and State laws, rules, guidelines, regulations, and requirements. Without
limitation of the foregoing, to the extent applicable, the Recipient shall:
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(a) Comply with the provisions of the adopted environmental mitigation plan, if any, for the term of
this Agreement;
(b) Comply with the State Water Board's Policy;
(c) Comply with and require compliance with the list of State laws attached as Exhibit H.
(d) Comply with and require its contractors and subcontractors on the Project to comply with federal
DBE requirements; and
(e) Comply with and require its contractors and subcontractors to comply with the list of federal laws
attached as Exhibit E.
4.6 Conflict of Interest.
As of the date of execution of this Agreement, the Recipient certifies that its owners, officers, directors,
agents, representatives, and employees are in compliance with applicable State and federal conflict of
interest laws. The Recipient shall ensure that its owners, officers, directors, agents, representatives, and
employees maintain compliance with applicable State and federal conflict of interest laws for the term of
this Agreement.
4.7 Damages for Breach Affecting Tax-Exempt Status or Federal Compliance
In the event that any breach of any of the provisions of this Agreement by the Recipient shall result in the
loss of tax-exempt status for any bonds of the State or any subdivision or agency thereof, including Bonds
issued on behalf of the State Water Board, or if such breach shall result in an obligation on the part of the
State or any subdivision or agency thereof to reimburse the federal government by reason of any
arbitrage profits, the Recipient shall immediately reimburse the State or any subdivision or agency thereof
in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency
thereof due to such breach. In the event that any breach of any of the provisions of this Agreement by
the Recipient shall result in the failure of Project Funds to be used pursuant to the provisions of this
Agreement, or if such breach shall result in an obligation on the part of the State or any subdivision or
agency thereof to reimburse the federal government, the Recipient shall immediately reimburse the State
or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the
State or any subdivision or agency thereof due to such breach.
4.8 Disputes.
(a) The Recipient may appeal a staff decision within thirty (30) days to the Deputy Director of the
Division or designee, for a final Division decision. The Recipient may appeal a final Division
decision to the State Water Board within thirty (30) days. The Office of the Chief Counsel of the
State Water Board will prepare a summary of the dispute and make recommendations relative to
its final resolution, which will be provided to the State Water Board’s Executive Director and each
State Water Board Member. Upon the motion of any State Water Board Member, the State Water
Board will review and resolve the dispute in the manner determined by the State Water Board.
Should the State Water Board determine not to review the final Division decision, this decision will
represent a final agency action on the dispute.
(b) This clause does not preclude consideration of legal questions, provided that nothing herein shall
be construed to make final the decision of the State Water Board, or any official or representative
thereof, on any question of law.
(c) Recipient shall continue with the responsibilities under this Agreement during any dispute.
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(d) This section 4.8 relating to disputes does not establish an exclusive procedure for resolving
claims within the meaning of Government Code sections 930 and 930.4.
4.9 Governing Law.
This Agreement is governed by and shall be interpreted in accordance with the laws of the State of
California.
4.10 Income Restrictions.
The Recipient agrees that any refunds, rebates, credits, or other amounts (including any interest thereon)
accruing to or received by the Recipient under this Agreement shall be paid by the Recipient to the State
Water Board, to the extent that they are properly allocable to costs for which the Recipient has been
reimbursed by the State Water Board under this Agreement.
4.11 Indemnification and State Reviews.
The parties agree that review or approval of Project plans and specifications by the State Water Board is
for administrative purposes only , including conformity with application and eligibility criteria, and
expressly not for the purposes of design defect review or construction feasibility, and does not relieve the
Recipient of its responsibility to properly plan, design, construct, operate, and maintain the Project. To
the extent permitted by law, the Recipient agrees to indemnify, defend, and hold harmless the State
Water Board, the Bank, and any trustee, and their officers, employees, and agents for the Bonds, if any
(collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought
against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or
expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in
any way connected with (1) the System or the Project or the conditions, occupancy, use, possession,
conduct, or management of, work done in or about, or the planning, design, acquisition, installation, or
construction, of the System or the Project or any part thereof; (2) the carrying out of any of the
transactions contemplated by this Agreement or any related document; (3) any violation of any applicable
law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive
Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act,
the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air
Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water
Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any
successors to said laws), rule or regulation or the release of any toxic substance on or near the System;
or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged
omission to state a material fact necessary to make the statements required to be stated therein, in light
of the circumstances under which they were made, not misleading with respect to any information
provided by the Recipient for use in any disclosure document utilized in connection with any of the
transactions contemplated by this Agreement, except those arising from the gross negligence or willful
misconduct of the Indemnified Persons. The Recipient shall also provide for the defense and
indemnification of the Indemnified Parties in any contractual provision extending indemnity to the
Recipient in any contract let for the performance of any work under this Agreement, and shall cause the
Indemnified Parties to be included within the scope of any provision for the indemnification and defense of
the Recipient in any contract or subcontract. To the fullest extent permitted by law, the Recipient agrees
to pay and discharge any judgment or award entered or made against Indemnified Persons with respect
to any such claim or action, and any settlement, compromise or other voluntary resolution. The
provisions of this section shall survive the term of this Agreement and the discharge of the Recipient's
Obligation hereunder.
4.12 Independent Actor.
The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall act in an
independent capacity and not as officers, employees, or agents of the State Water Board.
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4.13 Leveraging Covenants.
(a) Tax Covenant. Notwithstanding any other provision hereof, the Recipient covenants and agrees
that it will comply with the Tax Covenants set forth in Article V of this Agreement.
(b) Disclosure of Financial Information, Operating Data, and Other Information. The Recipient
covenants to furnish such financial, operating and other data pertaining to the Recipient as may
be requested by the State Water Board to: (i) enable the State Water Board to cause the
issuance of Bonds and provide for security therefor; or (ii) enable any underwriter of Bonds
issued for the benefit of the State Water Board to comply with Rule 15c2-12(b)(5). The Recipient
further covenants to provide the State Water Board with copies of all continuing disclosure
documents or reports that are disclosed pursuant to (i) the Recipient’s continuing disclosure
undertaking or undertakings made in connection with any outstanding System Obligation, (ii) the
terms of any outstanding System Obligation, or (iii) a voluntary disclosure of information related to
an outstanding System Obligation. The Recipient shall disclose such documents or reports to the
State Water Board at the same time such documents or reports are submitted to any
dissemination agent, trustee, nationally recognized municipal securities information repository,
the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access (EMMA)
website or other person or entity.
4.14 Non-Discrimination Clause.
(a) The Recipient shall comply with Government Code section 11135 and the implementing
regulations (Cal. Code Regs, tit. 2, § 11140 et seq.), including, but not limited to, ensuring that no
person is unlawfully denied full and equal access to the benefits of, or unlawfully subjected to
discrimination in the operation of, the Project or System on the basis of sex, race, color, religion,
ancestry, national origin, ethnic group identification, age, mental disability, physical disability,
medical condition, genetic information, marital status, or sexual orientation as such terms are
defined under California law, for as long as the Recipient retains ownership or possession of the
Project.
(b) If Project Funds are used to acquire or improve real property, the Recipient shall include a
covenant of nondiscrimination running with the land in the instrument effecting or recording the
transfer of such real property.
(c) The Recipient shall comply with the federal American with Disabilities Act of 1990 and
implementing regulations as required by Government Code section 11135(b).
(d) The Recipient’s obligations under this section shall survive the term of this Agreement.
(e) During the performance of this Agreement, Recipient and its contractors and subcontractors shall
not unlawfully discriminate, harass, or allow harassment against any employee or applicant for
employment because of sex, race, color, ancestry, religious creed, national origin, sexual
orientation, physical disability (including HIV and AIDS), mental disability, medical condition
(cancer), age (over 40), marital status, denial of family care leave, or genetic information, gender,
gender identity, gender expression, or military and veteran status.
(f) The Recipient, its contractors, and subcontractors shall ensure that the evaluation and treatment
of their employees and applicants for employment are free from such discrimination and
harassment.
(g) The Recipient, its contractors, and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov.
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Code, §12990, subds. (a)-(f) et seq.;Cal. Code Regs., tit. 2, § 7285 et seq.) Such regulations are
incorporated into this Agreement by reference and made a part hereof as if set forth in full.
(h) The Recipient, its contractors, and subcontractors shall give written notice of their obligations
under this clause to labor organizations with which they have a collective bargaining or other
agreement.
(i) The Recipient shall include the nondiscrimination and compliance provisions of this clause in all
subcontracts to perform work under this Agreement.
4.15 No Third Party Rights.
The parties to this Agreement do not create rights in, or grant remedies to, any third party as a beneficiary
of this Agreement, or of any duty, covenant, obligation, or undertaking established herein.
4.16 Operation and Maintenance; Insurance.
The Recipient agrees to sufficiently and properly staff, operate and maintain all portions of the System
during its useful life in accordance with all applicable state and federal laws, rules, and regulations.
The Recipient will procure and maintain or cause to be maintained insurance on the System with
responsible insurers, or as part of a reasonable system of self-insurance, in such amounts and against
such risks (including damage to or destruction of the System) as are usually covered in connection with
systems similar to the System. Such insurance may be maintained by a self-insurance plan so long as
such plan provides for (i) the establishment by the Recipient of a separate segregated self-insurance fund
in an amount determined (initially and on at least an annual basis) by an independent insurance
consultant experienced in the field of risk management employing accepted actuarial techniques and
(ii) the establishment and maintenance of a claims processing and risk management program.
In the event of any damage to or destruction of the System caused by the perils covered by such
insurance, the net proceeds thereof shall be applied to the reconstruction, repair or replacement of the
damaged or destroyed portion of the System. The Recipient shall begin such reconstruction, repair or
replacement as expeditiously as possible, and shall pay out of such net proceeds all costs and expenses
in connection with such reconstruction, repair or replacement so that the same shall be completed and
the System shall be free and clear of all claims and liens. If such net proceeds are insufficient to
reconstruct, repair, or restore the System to the extent necessary to enable the Recipient to pay all
remaining unpaid principal portions of the Installment Payments, if any, in accordance with the terms of
this Agreement, the Recipient shall provide additional funds to restore or replace the damaged portions of
the System.
Recipient agrees that for any policy of insurance concerning or covering the construction of the Project, it
will cause, and will require its contractors and subcontractors to cause, a certificate of insurance to be
issued showing the State Water Board, its officers, agents, employees, and servants as additional
insured; and shall provide the Division with a copy of all such certificates prior to the commencement of
construction of the Project.
4.17 Permits, Subcontracting, and Remedies.
The Recipient shall comply in all material respects with all applicable federal, state and local laws, rules
and regulations. Recipient shall procure all permits, licenses and other authorizations necessary to
accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices
necessary and incidental to the due and lawful prosecution of the work. Signed copies of any such
permits or licenses shall be submitted to the Division before construction begins.
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The Recipient shall not contract or allow subcontracting with excluded parties. The Recipient shall not
contract with any party who is debarred or suspended or otherwise excluded from or ineligible for
participation in any work overseen, directed, funded, or administered by the State Water Board program
for which this funding is authorized. For any work related to this Agreement, the Recipient shall not
contract with any individual or organization on the State Water Board’s List of Disqualified Businesses
and Persons that is identified as debarred or suspended or otherwise excluded from or ineligible for
participation in any work overseen, directed, funded, or administered by the State Water Board program
for which funding under this Agreement is authorized. The State Water Board’s List of Disqualified
Businesses and Persons is located at
http://www.waterboards.ca.gov/water_issues/programs/enforcement/fwa/dbp.shtml
4.18 Prevailing Wages.
The Recipient agrees to be bound by all applicable provisions of State Labor Code regarding prevailing
wages. The Recipient shall monitor all agreements subject to reimbursement from this Agreement to
ensure that the prevailing wage provisions of the State Labor Code are being met. In addition, the
Recipient agrees to comply with the provisions of Exhibit G (Davis-Bacon).
4.19 Public Funding.
This Project is publicly funded. Any service provider or contractor with which the Recipient contracts must
not have any role or relationship with the Recipient, that, in effect, substantially limits the Recipient's
ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and
circumstances.
4.20 Recipient’s Responsibility for Work.
The Recipient shall be responsible for all work and for persons or entities engaged in work performed
pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and
providers of services. The Recipient shall be responsible for responding to any and all disputes arising
out of its contracts for work on the Project. The State Water Board will not mediate disputes between the
Recipient and any other entity concerning responsibility for performance of work.
4.21 Related Litigation.
Under no circumstances may the Recipient use funds from any disbursement under this Agreement to
pay costs associated with any litigation the Recipient pursues against the State Water Board or any
Regional Water Quality Control Board. Regardless of the outcome of any such litigation, and
notwithstanding any conflicting language in this Agreement, the Recipient agrees to repay all of the
disbursed funds plus interest in the event that Recipient does not complete the Project.
4.22 Rights in Data.
The Recipient agrees that all data, plans, drawings, specifications, reports, computer programs, operating
manuals, notes, and other written or graphic work produced in the performance of this Agreement are
subject to the rights of the State as set forth in this section. The State shall have the right to reproduce,
publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and
to authorize others to do so. If any such work is copyrightable, the Recipient may copyright the same,
except that, as to any work which is copyrighted by the Recipient, the State reserves a royalty-free,
nonexclusive, and irrevocable license to reproduce, publish, and use such work, or any part thereof, and
to authorize others to do so, and to receive electronic copies from the Recipient upon request.
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4.23 State Water Board Action; Costs and Attorney Fees.
Any remedy provided in this Agreement is in addition to and not in derogation of any other legal or
equitable remedy available to the State Water Board as a result of breach of this Agreement by the
Recipient, whether such breach occurs before or after completion of the Project, and exercise of any
remedy provided by this Agreement by the State Water Board shall not preclude the State Water Board
from pursuing any legal remedy or right which would otherwise be available. In the event of litigation
between the parties hereto arising from this Agreement, it is agreed that each party shall bear its own
costs and attorney fees.
4.24 Termination and Remedies Upon Event of Default.
For purposes of this section, the term “State Water Board” shall mean the State Water Board and its
assignees.
(a) Acceleration of Obligation. Whenever the State Water Board determines that an Event of Default
shall have occurred, the State Water Board may declare all principal components of Installment
Payments and accrued interest thereon to be immediately due and payable, whereupon the same
shall become due and payable, along with Additional Payments and penalty assessments, if any,
notwithstanding anything in this Agreement to the contrary. In the event of such acceleration,
interest shall accrue from the date of such acceleration at the highest legal rate of interest.
(b) Judicial remedies. Whenever the State Water Board determines that an Event of Default shall
have occurred, the State Water Board may enforce its rights under this Agreement by any judicial
proceeding, whether at law or in equity. Without limiting the generality of the foregoing, the State
Water Board may: by suit in equity, require the Recipient to account for amounts relating to this
Agreement as if the Recipient were the trustee of an express trust; by mandamus or other
proceeding, compel the performance by the Recipient and any of its officers, agents, and
employees of any duty under the law or of any obligation or covenant under this Agreement,
including, but not limited to, the imposition and collection of rates for the services of the System
sufficient to meet all requirements of this Agreement; and take whatever action at law or in equity
as may appear necessary or desirable to the State Water Board to collect the Installment
Payments then due or thereafter to become due, or to enforce performance of any obligation or
covenant of the Recipient under this Agreement.
(c) Termination. Upon an Event of Default, the State Water Board may terminate this Agreement.
Interest shall accrue on all amounts due at the highest legal rate of interest from the date that the
State Water Board delivers notice of termination to the Recipient.
(d) Remedies Not Exclusive. None of the remedies available to the State Water Board shall be
exclusive of any other remedy, and each such remedy shall be cumulative and in addition to
every other remedy given hereunder or now or hereafter existing at law or in equity. The State
Water Board may exercise any remedy, now or hereafter existing, without exhausting and without
regard to any other remedy.
(e) Non-waiver. Nothing in this section or any other section of this Agreement shall affect or impair
the Recipient’s obligation to pay Installment Payments as provided herein or shall affect or impair
the right of the State Water Board to bring suit to enforce such payment. No delay or omission of
the State Water Board in the exercise of any right arising upon an Event of Default shall impair
any such right or be construed to be a waiver of any such Event of Default. The State Water
Board may exercise from time to time and as often as shall be deemed expedient by the State
Water Board, any remedy or right provided by law or pursuant to this Agreement.
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(f) Status Quo. If any action to enforce any right or exercise any remedy shall be brought and either
discontinued or determined adversely to the State Water Board, then the State Water Board shall
be restored to its former position, rights and remedies as if no such action had been brought.
4.25 Timeliness.
Time is of the essence in this Agreement.
4.26 Unenforceable Provision.
In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the
parties agree that all other provisions of this Agreement have force and effect and shall not be affected
thereby.
4.27 Useful Life.
The Recipient warrants that the economic useful life of the Project, commencing at Project Completion, is
at least equal to the term of this Agreement, as set forth in Exhibit B.
4.28 Venue.
Any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the
County of Sacramento, California.
4.29 Waiver and Rights of the State Water Board.
Any waiver of rights by the State Water Board with respect to a default or other matter arising under this
Agreement at any time shall not be considered a waiver of rights with respect to any other default or
matter.
Any rights and remedies of the State Water Board provided for in this Agreement are in addition to any
other rights and remedies provided by law.
ARTICLE V TAX COVENANTS
5.1 Purpose.
The purpose of this Article V is to establish the reasonable expectations of the Recipient regarding the
Project and the Project Funds, and is intended to be and may be relied upon for purposes of Sections
103, 141 and 148 of the Code and as a certification described in Section 1.148-2(b)(2) of the Treasury
Regulations. This Article V sets forth certain facts, estimates and circumstances which form the basis for
the Recipient’s expectation that neither the Project nor the Bond Funded Portion of the Project Funds is to
be used in a manner that would cause the Obligation to be classified as “arbitrage bonds” under Section
148 of the Code or “private activity bonds” under Section 141 of the Code.
5.2 Tax Covenant.
The Recipient agrees that it will not take or authorize any action or permit any action within its reasonable
control to be taken, or fail to take any action within its reasonable control, with respect to the Project
which would result in the loss of the exclusion of interest on the Bonds from gross income for federal
income tax purposes under Section 103 of the Code.
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5.3 Governmental Unit.
The Recipient is a state or local governmental unit as defined in Section 1.103-1 of the Treasury
Regulations or an instrumentality thereof (a "Governmental Unit") and is not the federal government or
any agency or instrumentality thereof.
5.4 Financing of a Capital Project.
The Recipient will use the Project Funds to finance costs it has incurred or will incur for the construction,
reconstruction, installation or acquisition of the Project. Such costs shall not have previously been
financed with the proceeds of any other issue of tax-exempt obligations.
5.5 Ownership and Operation of Project.
The Recipient exclusively owns and, except as provided in Section 5.12 hereof, operates the Project.
5.6 Temporary Period.
The Recipient reasonably expects that at least eighty-five percent (85%) of the Bond Funded Portion of
the Project Funds will be allocated to expenditures for the Project within three (3) years of the earlier of
the effective date of this Agreement or the date the Bonds are issued ("Applicable Date"). The Recipient
has incurred, or reasonably expects that it will incur within six (6) months of the Applicable Date, a
substantial binding obligation (i.e., not subject to contingencies within the control of the Recipient or a
related party) to a third party to expend at least five percent (5%) of the Bond Funded Portion of the
Project Funds on Project Costs. The completion of acquisition, construction, improvement and equipping
of the Project and the allocation of the Bond Funded Portion of the Project Funds to Project Costs will
proceed with due diligence.
5.7 Working Capital.
No operational expenditures of the Recipient or any related entity are being, have been or will be financed
or refinanced with Project Funds.
5.8 Expenditure of Proceeds.
The Bond Funded Portion of the Project Funds shall be used exclusively for the following purposes: (i)
Reimbursement Expenditures (as defined in Section 5.20 below), (ii) Preliminary Expenditures (as
defined in Section 5.20 below) in an aggregate amount not exceeding twenty percent (20%) of the Bond
Funded Portion of the Project Funds, (iii) capital expenditures relating to the Project originally paid by the
Recipient on or after the date hereof, (iv) interest on the Obligation through the later of three (3) years
after the Applicable Date or one (1) year after the Project is placed in service, and (v) initial operating
expenses directly associated with the Project in the aggregate amount not more than five percent (5%) of
the Bond Funded Portion of the Project Funds.
5.9 Private Use and Private Payments.
No portion of the Project Funds or the Project is being, has been or will be used in the aggregate for any
activities that constitute a Private Use (as defined below). No portion of the principal of or interest with
respect to the Installment Payments will be secured by any interest in property (whether or not the
Project) used for a Private Use or in payments in respect of property used for a Private Use, or will be
derived from payments in respect of property used for a Private Use. "Private Use" means any activity
that constitutes a trade or business that is carried on by persons or entities, other than a Governmental
Unit. The leasing of the Project or the access by or the use of the Project by a person or entity other than
a Governmental Unit on a basis other than as a member of the general public shall constitute a Private
Use. Use by or on behalf of the State of California or any of its agencies, instrumentalities or subdivisions
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or by any local Governmental Unit and use as a member of the general public will be disregarded in
determining whether a Private Use exists. Use under an arrangement that conveys priority rights or other
preferential benefits is generally not use on the same basis as the general public. Arrangements
providing for use that is available to the general public at no charge or on the basis of rates that are
generally applicable and uniformly applied do not convey priority rights or other preferential benefits. For
this purpose, rates may be treated as generally applicable and uniformly applied even if (i) different rates
apply to different classes of users, such as volume purchasers, if the differences in rates are customary
and reasonable; or (ii) a specially negotiated rate arrangement is entered into, but only if the user is
prohibited by federal law from paying the generally applicable rates, and the rates established are as
comparable as reasonably possible to the generally applicable rates. An arrangement that does not
otherwise convey priority rights or other preferential benefits is not treated, nevertheless, as general
public use if the term of the use under the arrangement, including all renewal options, is greater than 200
days. For this purpose, a right of first refusal to renew use under the arrangement is not treated as a
renewal option if (i) the compensation for the use under the arrangement is redetermined at generally
applicable, fair market value rates that are in effect at the time of renewal; and (ii) the use of the financed
property under the same or similar arrangements is predominantly by natural persons who are not
engaged in a trade or business.
5.10 No Sale, Lease or Private Operation of the Project.
The Project (or any portion thereof) will not be sold or otherwise disposed of, in whole or in part, to any
person who is not a Governmental Unit prior to the final maturity date of the Obligation. The Project will
not be leased to any person or entity that is not a Governmental Unit prior to the final maturity date of the
Obligation. Except as permitted under Section 5.12 hereof, the Recipient will not enter any contract or
arrangement or cause or permit any contract or arrangement to be entered with persons or entities that
are not Governmental Units if that contract or arrangement would confer on such persons or entities any
right to use the Project on a basis different from the right of members of the general public. The contracts
or arrangements contemplated by the preceding sentence include but are not limited to management
contracts, take or pay contracts or put or pay contracts, and capacity guarantee contracts.
5.11 No Disproportionate or Unrelated Use.
No portion of the Project Funds or the Project is being, has been, or will be used for a Private Use that is
unrelated or disproportionate to the governmental use of the Project Funds.
5.12 Management and Service Contracts.
The Recipient represents that, as of the date hereof, it is not a party to any contract, agreement or other
arrangement with any persons or entities engaged in a trade or business (other than Governmental Units)
that involve the management or operation of property or the provision of services at or with respect to the
Project that does not comply with the standards of the Treasury Regulations, Revenue Procedure 97-13,
as modified by Revenue Procedure 2001-39 and IRS Notice 2014-67, or Revenue Procedure 2017-13, as
applicable. The Recipient represents that it will not be party to any such contract, agreement or
arrangement with any person or entity that is not a Governmental Unit for the management of property or
the provision of services at or with respect to the Project, while the Obligation (including any obligation or
series thereof issued to refund the Obligation, as the case may be) is outstanding, except: (a) with
respect to any contract, agreement or arrangement that does not constitute “private business use” of the
Project under Code §141(b), or (b) with respect to any contract, agreement or arrangement that complies
with (i) Revenue Procedure 97-13, 1997-1 C.B. 632, as amended by Revenue Procedure 2001-39, 2001-
2 C.B. 38, and as amplified by Notice 2014-67, with respect to contracts entered into before August 18,
2017 and not materially modified or extended after August 18, 2017, or (ii) Revenue Procedure 2017-13,
with respect to contracts entered into or materially modified or extended on or after August 18, 2017, or
(c) with respect to any contract, agreement or arrangement that does not give rise to use of the Bond
Funded Portion of the Project Funds or the Project by a non-Governmental Unit of more than the amount
of such non-qualified use permitted by the Code, or (d) in the event that the Recipient receives an opinion
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of counsel, satisfactory to the State Water Board and the Bank and expert in the issuance of state and
local government bonds the interest on which is excluded from gross income under Section 103 of the
Code (“Nationally-Recognized Bond Counsel”), that such contract, agreement or arrangement will not
adversely affect the exclusion of the interest on the Obligation from gross income for federal income
taxation purposes.
5.13 No Disposition of Financed Property.
As of the date hereof, the Recipient does not expect to sell or otherwise dispose of any portion of the
Project, in whole or in part, prior to the final maturity date of the Obligation.
5.14 Useful Life of Project.
As of the date hereof, the Recipient reasonably expects that the economic useful life of the Project,
commencing at Project Completion, will be at least equal to the term of this Agreement, as set forth on
Exhibit B hereto.
5.15 Installment Payments.
Installment Payments generally are expected to be derived from assessments, taxes, fees, charges or
other current Revenues of the Recipient in each year, and such current Revenues are expected to equal
or exceed the Installment Payments during each payment period. Any amounts accumulated in a sinking
fund or bona fide debt service fund to pay Installment Payments (whether or not deposited to a fund or
account established by the Recipient) will be disbursed to pay Installment Payments within thirteen
months of the initial date of accumulation or deposit. Any such fund used for the payment of Installment
Payments will be depleted once a year except for a reasonable carryover amount not exceeding the
greater of earnings on such fund or one-twelfth of the Installment Payments in either case for the
immediately preceding year.
5.16 No Other Replacement Proceeds.
The Recipient will not use any of the Bond Funded Portion of the Project Funds to replace or substitute
other funds of the Recipient that were otherwise to be used to finance the Project or which are or will be
used to acquire securities, obligations or other investment property reasonably expected to produce a
yield that is materially higher than the yield on the Bonds.
5.17 No Sinking or Pledged Fund.
Except as set forth in Section 5.18 below, the Recipient will not create or establish any sinking fund or
pledged fund which will be used to pay Installment Payments on the Obligation within the meaning of
Section 1.148-1(c) of the Treasury Regulations. If any sinking fund or pledged fund comes into being with
respect to the Obligation before the Obligation has been fully retired which may be used to pay the
Installment Payments, the Recipient will invest such sinking fund and pledged fund moneys at a yield that
does not exceed the yield on the Bonds.
5.18 Reserve Amount.
The State Water Board requires that the Recipient maintain and fund a separate account in an amount
equal to one (1) year of Debt Service with respect to the Obligation (the “Reserve Amount”) as set forth in
Section 3.7. The Recipient represents that the Reserve Amount is and will be available to pay debt
service with respect to the Obligation, if and when needed. The Reserve Amount consists solely of
revenues of the Recipient and does not include any proceeds of any obligations the interest on which is
excluded from gross income for federal income tax purposes or investment earnings thereon. The
aggregate of the Reserve Amount, up to an amount not exceeding the lesser of (i) ten percent of the
aggregate principal amount of the Obligation, (ii) the maximum annual debt service with respect to the
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Obligation, or (iii) 125 percent of the average annual debt service with respect to the Obligation, will be
treated as a reasonably required reserve fund.
5.19 Reimbursement Resolution.
The “reimbursement resolution” adopted by the Recipient is incorporated herein by reference, pursuant to
Exhibit A.
5.20 Reimbursement Expenditures.
Reimbursements are disallowed, except as specifically authorized in Exhibit B or Exhibit D of this
Agreement. To the extent so authorized, a portion of the Bond Funded Portion of the Project Funds may
be applied to reimburse the Recipient for Project Costs paid before the date hereof, so long as the Project
Cost was (i) not paid prior to sixty (60) days before the Recipient’s adoption of a declaration of official
intent to finance the Project, (ii) not paid more than eighteen (18) months prior to the date hereof or the
date the Project was placed-in-service, whichever is later, and (iii) not paid more than three (3) years prior
to the date hereof (collectively, “Reimbursement Expenditures”), unless such cost is attributable to a
“preliminary expenditure.” Preliminary expenditure for this purpose means architectural, engineering,
surveying, soil testing and similar costs incurred prior to the commencement of construction or
rehabilitation of the Project, but does not include land acquisition, site preparation and similar costs
incident to the commencement of acquisition, construction or rehabilitation of the Project. Preliminary
expenditures may not exceed 20% of the Bond Funded Portion of the Project Funds.
5.21 Change in Use of the Project.
The Recipient reasonably expects to use all of the Bond Funded Portion of the Project Funds and the
Project for the entire stated term to maturity of the Obligation. Absent an opinion of Nationally-
Recognized Bond Counsel to the effect that such use of the Bond Funded Portion of the Project Funds
will not adversely affect the exclusion from federal gross income of interest on the Bonds pursuant to
Section 103 of the Code, the Recipient will use the Bond Funded Portion of the Project Funds and the
Project solely as set forth in this Agreement.
5.22 Rebate Obligations.
If the Recipient satisfies the requirements of one of the spending exceptions to rebate specified in Section
1.148-7 of the Treasury Regulations, amounts earned from investments, if any, acquired with the Bond
Funded Portion of the Project Funds will not be subject to the rebate requirements imposed under Section
148(f) of the Code. If the Recipient fails to satisfy such requirements for any period, it will notify the State
Water Board and the Bank immediately and will comply with the provisions of the Code and the Treasury
Regulations at such time, including the payment of any rebate amount calculated by the State Water
Board or the Bank.
5.23 No Federal Guarantee.
The Recipient will not directly or indirectly use any of the Bond Funded Portion of the Project Funds in
any manner that would cause the Bonds to be "federally guaranteed" within the meaning of Section
149(b) of the Code, taking into account various exceptions including any guarantee related to investments
during an initial temporary period until needed for the governmental purpose of the Bonds, investments as
part of a bona fide debt service fund, investments of a reasonably required reserve or replacement fund,
investments in bonds issued by the United States Treasury, investments in refunding escrow funds or
certain other investments permitted under the Treasury Regulations.
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5.24 No Notices or Inquiries from IRS.
Within the last 10 years, the Recipient has not received any notice of a final action of the Internal
Revenue Service that determines that interest paid or payable on any debt obligation of the Recipient is
or was includable in the gross income of an owner or beneficial owner thereof for federal income tax
purposes under the Code.
5.25 Amendments.
The provisions in this Article may be amended, modified or supplemented at any time to reflect changes
in the Code upon obtaining written approval of the State Water Board and the Bank and an opinion of
Nationally-Recognized Bond Counsel to the effect that such amendment, modification or supplement will
not adversely affect the exclusion from federal gross income of interest on the Bonds pursuant to Section
103 of the Code.
5.26 Reasonable Expectations.
The Recipient warrants that, to the best of its knowledge, information and belief, and based on the facts
and estimates as set forth in the tax covenants in this Article, the expectations of the Recipient as set
forth in this Article are reasonable. The Recipient is not aware of any facts or circumstances that would
cause it to question the accuracy or reasonableness of any representation made in the provisions in this
Article V.
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IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
CITY OF SAN LUIS OBISPO:
By: ____________________________________
Name: Carrie Mattingly
Title: Utilities Director
Date: __________________________________
STATE WATER RESOURCES CONTROL BOARD:
By: ____________________________________
Name: Leslie Laudon
Title: Deputy Director
Division of Financial Assistance
Date: _________________________________
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Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT A – SCOPE OF WORK
A-1
1. Eligible Start Date. The Eligible Start Date is July 20, 2018.
2. Start of Construction Date. The Recipient agrees to start construction no later than the estimated
date of March 1, 2019.
3. Completion of Construction Date. The Completion of Construction date is hereby established as
February 1, 2022. The Recipient shall deliver any request for extension of the Completion of
Construction date no less than 90 days prior to the Completion of Construction date.
4. Final Disbursement Request Date. The Recipient agrees to ensure that its final Request for
Disbursement is received by the Division no later than August 1, 2022, unless prior approval has
been granted by the Division. Otherwise, the undisbursed balance of this Agreement will be de-
obligated.
5. Records Retention Date is February 1, 2058.
6. Incorporated Documents. Incorporated by reference into this Agreement are the following
documents:
a. [Reserved];
b. the Waste Discharge Requirement Order No. R3-2014-0033 and National Pollutant
Discharge Elimination System Permit No. CA0049224;
c. the Recipient’s Reimbursement Resolution No. 10763 dated December 13, 2016;
d. the Recipient’s Tax Questionnaire dated December 21, 2016
7. Reporting. Status Reports due at least quarterly.
8. Purpose.
The Project will upgrade the treatment processes at the Recipient’s Water Resource Recovery
Facility (WRRF) to meet NPDES permitting requirements, treat future flows and loads, handle wet
weather events, replace aging equipment, maximize recycled water production, and incorporate
interpretive features and public amenities to promote the Recipient’s “One Water” concept.
9. Scope of Work.
The Recipient will complete all planning, design, and procurement necessary to upgrade the WRRF.
Project construction elements will include:
1. A new membrane bioreactor system including:
a. Two new aeration basins (in addition to two existing basins) acting as bioreactors;
including new blowers, diffusers, pumps, and mixers;
b. Membrane tanks to replace the existing secondary clarifiers and monomedia filter
towers;
2. An ultraviolet disinfection (UV) system to replace existing chlorine contact treatment;
3. Expansion of existing equalization storage;
4. Repurposing of equalization tanks and chlorine contact channels to increase recycled water
storage capacity onsite;
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EXHIBIT A – SCOPE OF WORK
A-2
5. New odor control for major processes that produce malodors;
6. Thickening upgrades with screw thickeners;
7. A new anaerobic digester in place of dissolved air flotation thickener (DAFT) for solids
processing;
a. Repurposing of existing DAFT for sludge blending prior to thickening;
b. New digester and mixing systems will enhance production of biogas for on-site renewable
electricity generation;
8. A new Water Resource Center that will house WRRF Operations, WRRF Maintenance,
Wastewater Collections, Water Distribution, Water Quality Laboratory, and Environmental
Programs; and
9. A new One Water Learning Center and demonstration wetlands to engage and educate the
local community and visitors.
10. Signage.
The Recipient shall place a sign at least four feet tall by eight feet wide made of ¾ inch thick exterior
grade plywood or other approved material in a prominent location on the Project site and shall
maintain the sign in good condition for the duration of the construction period. The sign must include
the following disclosure statement and color logos (available from the Division):
“Funding for this Water Resource Recovery Facility Expansion and Improvement Project has
been provided in full or in part by the Clean Water State Revolving Fund through an
agreement with the State Water Resources Control Board. California’s Clean Water State
Revolving Fund is capitalized through a variety of funding sources, including grants from the
United States Environmental Protection Agency and State bond proceeds.”
The Project sign may include another agency's required promotional information so long as the above
logos and disclosure statement are equally prominent on the sign. The sign shall be prepared in a
professional manner.
The Recipient shall include the following disclosure statement in any document, written report, or
brochure prepared in whole or in part pursuant to this Agreement:
“Funding for this project has been provided in full or in part through an agreement with the
State Water Resources Control Board. California’s Clean Water State Revolving Fund is
capitalized through a variety of funding sources, including grants from the United States
Environmental Protection Agency and state bond proceeds. The contents of this document
do not necessarily reflect the views and policies of the foregoing, nor does mention of trade
names or commercial products constitute endorsement or recommendation for use.”
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EXHIBIT B – FUNDING AMOUNT
B-1
1. Estimated Reasonable Cost. The estimated reasonable cost of the total Project, including associated
planning and design costs is one hundred forty million dollars and no cents ($140,000,000.00).
2. Project Financing. Subject to the terms of this Agreement, the State Water Board agrees to provide
Project Funds in the amount of up to one hundred forty million dollars and no cents ($140,000,000.00).
A portion of this amount, four million dollars and no cents ($4,000,000.00), is anticipated to be
forgiven. The estimated amount of principal that will be due to the State Water Board under this
Agreement is one hundred thirty-six million dollars and no cents ($136,000,000.00).
3. Payment, Interest Rate, and Charges. The Recipient agrees to make all Installment Payments
according to the schedule in Exhibit C at an interest rate of one and eight tenths percent (1.8%) per
annum. The Recipient agrees to pay an Administrative Service Charge in lieu of interest to be
reflected in Exhibit C. The Recipient agrees to pay a Small Community Grant Fund Charge in lieu of
interest to be reflected in Exhibit C.
4. Contingent Principal Forgiveness. Contingent on the Recipient’s performance of its obligations under
this Agreement, the State Water Board agrees to forgive up to four million dollars and no cents
($4,000,000.00) of the principal under this Agreement.
5. Useful Life. The useful life of this Project is at least thirty (30) years.
6. The Final Repayment Date is February 1, 2052.
7. Budget costs are contained in the Project Cost Table, which is part of Exhibit A-FBA. (This Agreement
will be amended to incorporate Exhibit A-FBA.)
8. Preliminary budget costs are as follows:
Planning and design allowances: $9,250,000
Construction costs and disbursements are not available until after this Agreement has been amended
to incorporate Exhibit A-FBA. Construction costs incurred prior to the Eligible Start Date are not
eligible for reimbursement. Failure to begin construction according to the timelines set forth in Exhibit
A may require the Recipient to repay to the State Water Board all disbursed Project Funds, including
planning and design allowances.
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City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT C – PAYMENT SCHEDULE
C-1
See the attached preliminary Payment Schedule. The final Payment Schedule will be forwarded to the
Recipient after all disbursements have been paid and construction of the Project has been completed.
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Item 13
Ref
Num
Due
Date
Date
Received Principal Payment
Interest
Rate%
Interest
Payment
Total P and I
Payment
Total
Payment
Ending
Balance
CPI
Interest
1 2/1/2023 3,539,526.33 1.800 2,269,265.72 5,808,792.05 5,808,792.05 130,344,914.01 0.00
2 2/1/2024 3,521,355.00 1.800 2,381,598.74 5,902,953.74 5,902,953.74 128,939,118.67 0.00
3 2/1/2025 3,582,049.60 1.800 2,320,904.14 5,902,953.74 5,902,953.74 125,357,069.07 0.00
4 2/1/2026 3,646,526.50 1.800 2,256,427.24 5,902,953.74 5,902,953.74 121,710,542.57 0.00
5 2/1/2027 3,712,163.97 1.800 2,190,789.77 5,902,953.74 5,902,953.74 117,998,378.60 0.00
6 2/1/2028 3,778,982.93 1.800 2,123,970.81 5,902,953.74 5,902,953.74 114,219,395.67 0.00
7 2/1/2029 3,847,004.62 1.800 2,055,949.12 5,902,953.74 5,902,953.74 110,372,391.05 0.00
8 2/1/2030 3,916,250.70 1.800 1,986,703.04 5,902,953.74 5,902,953.74 106,456,140.35 0.00
9 2/1/2031 3,986,743.21 1.800 1,916,210.53 5,902,953.74 5,902,953.74 102,469,397.14 0.00
10 2/1/2032 4,058,504.59 1.800 1,844,449.15 5,902,953.74 5,902,953.74 98,410,892.55 0.00
11 2/1/2033 4,131,557.67 1.800 1,771,396.07 5,902,953.74 5,902,953.74 94,279,334.88 0.00
12 2/1/2034 4,205,925.71 1.800 1,697,028.03 5,902,953.74 5,902,953.74 90,073,409.17 0.00
13 2/1/2035 4,281,632.37 1.800 1,621,321.37 5,902,953.74 5,902,953.74 85,791,776.80 0.00
14 2/1/2036 4,358,701.76 1.800 1,544,251.98 5,902,953.74 5,902,953.74 81,433,075.04 0.00
15 2/1/2037 4,437,158.39 1.800 1,465,795.35 5,902,953.74 5,902,953.74 76,995,916.65 0.00
16 2/1/2038 4,517,027.24 1.800 1,385,926.50 5,902,953.74 5,902,953.74 72,478,889.41 0.00
17 2/1/2039 4,598,333.73 1.800 1,304,620.01 5,902,953.74 5,902,953.74 67,880,555.68 0.00
18 2/1/2040 4,681,103.74 1.800 1,221,850.00 5,902,953.74 5,902,953.74 63,199,451.94 0.00
19 2/1/2041 4,765,363.61 1.800 1,137,590.13 5,902,953.74 5,902,953.74 58,434,088.33 0.00
20 2/1/2042 4,851,140.15 1.800 1,051,813.59 5,902,953.74 5,902,953.74 53,582,948.18 0.00
21 2/1/2043 4,938,460.67 1.800 964,493.07 5,902,953.74 5,902,953.74 48,644,487.51 0.00
22 2/1/2044 5,027,352.96 1.800 875,600.78 5,902,953.74 5,902,953.74 43,617,134.55 0.00
23 2/1/2045 5,117,845.32 1.800 785,108.42 5,902,953.74 5,902,953.74 38,499,289.23 0.00
24 2/1/2046 5,209,966.53 1.800 692,987.21 5,902,953.74 5,902,953.74 33,289,322.70 0.00
25 2/1/2047 5,303,745.93 1.800 599,207.81 5,902,953.74 5,902,953.74 27,985,576.77 0.00
26 2/1/2048 5,399,213.36 1.800 503,740.38 5,902,953.74 5,902,953.74 22,586,363.41 0.00
27 2/1/2049 5,496,399.20 1.800 406,554.54 5,902,953.74 5,902,953.74 17,089,964.21 0.00
28 2/1/2050 5,595,334.38 1.800 307,619.36 5,902,953.74 5,902,953.74 11,494,629.83 0.00
29 2/1/2051 5,696,050.40 1.800 206,903.34 5,902,953.74 5,902,953.74 5,798,579.43 0.00
30 2/1/2052 5,798,579.43 1.800 104,374.43 5,902,953.86 5,902,953.86 0.00 0.00
136,000,000.00 40,994,450.63 176,994,450.63 176,994,450.63 0.00
Page 1 of 1 9/27/2018
California CWSRF Payment Schedule
Project No. 8029-110 - San Luis Obispo, City of
Agreement: - based on Actual + Projected Disbursements
San Luis Obispo Water Resource Recovery Facility Expansion and Improvements Project
Interest rate:1.80000%
Principal is paid over:30 Years
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Item 13
City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT D – SPECIAL CONDITIONS
D-1
Recipient acknowledges and agrees to the following special conditions:
Environmental:
The document(s) below are incorporated by reference and the Recipient shall comply with the conditions
and recommendations therein:
1. The adopted March 27, 2017 Mitigation Monitoring and Reporting Program, the Recipient shall
comply with mitigation measures:
• AQ-2(a) and AQ-2(b) for air resources;
• BIO-1(a) through BIO-1(f) and BIO-1(j) for biological resources;
• CR-1(a) through CR-1(d) for culture resources;
• HYD-1 for hydrology and water quality; and
• HAZ-1(a), HAZ-1(b), HAZ-3(a) and HAZ-3(b) for hazardous materials and contaminated
soils.
The Recipient shall make no changes in the Project, construction area, or special conditions, without
obtaining the appropriate and necessary prior approval(s) from State Water Board.
REPORTING TO THE STATE WATER BOARD
1. In its status report submitted pursuant to this Agreement, the Recipient shall include a discussion
of the status of its compliance with environmental measures identified in this Exhibit D.
2. In its Project Completion Report submitted pursuant to this Agreement, the Recipient shall include
a discussion of compliance with environmental measures identified in this Exhibit D.
Legal:
1. As a condition precedent to this Agreement, the Recipient must deliver an opinion of bond
counsel and general counsel satisfactory to the State Water Board’s counsel.
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Item 13
City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT E – PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
E-1
The Recipient agrees to comply with the following federal conditions:
(A) Federal Award Conditions
(1) American Iron and Steel. Unless the Recipient has obtained a waiver from USEPA on
file with the State Water Board or unless this Project is not a project for the construction,
alteration, maintenance or repair of a public water system or treatment work, the
Recipient shall not purchase “iron and steel products” produced outside of the United
States on this Project. Unless the Recipient has obtained a waiver from USEPA on file
with the State Water Board or unless this Project is not a project for the construction,
alteration, maintenance or repair of a public water system or treatment work, the
Recipient hereby certifies that all “iron and steel products” used in the Project were or will
be produced in the United States. For purposes of this section, the term "iron and steel
products" means the following products made primarily of iron or steel: lined or unlined
pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges,
pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and
construction materials. “Steel” means an alloy that includes at least 50 percent iron,
between .02 and 2 percent carbon, and may include other elements.
(2) Wage Rate Requirements (Davis-Bacon). The Recipient shall include in full the language
provided in Exhibit G of this Agreement in all contracts and subcontracts.
(3) Signage Requirements. The Recipient shall comply with the USEPA’s Guidelines for
Enhancing Public Awareness of SRF Assistance Agreements, dated June 3, 2015, as
otherwise specified in this Agreement.
(4) Public or Media Events. The Recipient shall notify the State Water Board and the EPA
contact as provided in the notice provisions of this Agreement of public or media events
publicizing the accomplishment of significant events related to this Project and provide
the opportunity for attendance and participation by federal representatives with at least
ten (10) working days’ notice.
(5) EPA General Terms and Conditions (USEPA GTCs). The Recipient shall comply with
applicable EPA general terms and conditions found at http://www.epa.gov/ogd, including
but not limited to the following:
(a) DUNS. No Recipient may receive funding under this Agreement unless it has
provided its DUNS number to the State Water Board.
(b) Executive Compensation. The Recipient shall report the names and total
compensation of each of its five most highly compensated executives for the
preceding completed fiscal year, as set forth in the USEPA GTCs.
(c) Federal Exclusion or Disqualification. The Recipient represents and warrants that
it and its principals are not excluded or disqualified from participating in this
transaction as such terms are defined in Parts 180 and 1532 of Title 2 of the
Code of Federal Regulations (2 CFR). If the Recipient is excluded after
execution of this Agreement, the Recipient shall notify the Division within ten (10)
days and shall inform the Division of the Recipient’s exclusion in any request for
amendment of this Agreement. The Recipient shall comply with Subpart C of
Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR. Such
compliance is a condition precedent to the State Water Board’s performance of
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Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT E – PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
E-2
its obligations under this Agreement. When entering into a covered transaction
as defined in Parts 180 and 1532 of 2 CFR, the Recipient shall require the other
party to the covered transaction to comply with Subpart C of Part 180 of 2 CFR,
as supplemented by Subpart C of Part 1532 of 2 CFR.
(d) Conflict of Interest. To the extent applicable, the Recipient shall disclose to the
State Water Board any potential conflict of interest consistent with USEPA’s Final
Financial Assistance Conflict of Interest Policy at
https://www.epa.gov/grants/epas-final-financial-assistance-conflict-interest-policy.
A conflict of interest may result in disallowance of costs.
(e) Copyright and Patent.
i. USEPA and the State Water Board have the right to reproduce, publish, use
and authorize others to reproduce, publish and use copyrighted works or
other data developed under this assistance agreement.
ii. Where an invention is made with Project Funds, USEPA and the State Water
Board retain the right to a worldwide, nonexclusive, nontransferable,
irrevocable, paid-up license to practice the invention owned by the Recipient.
The Recipient must utilize the Interagency Edison extramural invention
reporting system at http://iEdison.gov and shall notify the Division when an
invention report, patent report, or utilization report is filed.
(f) Credit. The Recipient agrees that any reports, documents, publications or other
materials developed for public distribution supported by this Agreement shall
contain the following statement:
“This project has been funded wholly or in part by the United States Environmental
Protection Agency and the State Water Resources Control Board. The contents of
this document do not necessarily reflect the views and policies of the
Environmental Protection Agency or the State Water Resources Control Board, nor
does the EPA or the Board endorse trade names or recommend the use of
commercial products mentioned in this document.”
(g) Electronic and Information Technology Accessibility. The Recipient is encouraged
to follow guidelines established under Section 508 of the Rehabilitation Act,
codified at 36 CFR Part 1194, with respect to enabling individuals with disabilities
to participate in its programs supported by this Project.
(h) Trafficking in Persons. The Recipient, its employees, contractors and
subcontractors and their employees may not engage in severe forms of trafficking
in persons, procure a commercial sex act during the term of this Agreement, or use
forced labor in the performance of this Agreement. The Recipient must include this
provision in its contracts and subcontracts under this Agreement. The Recipient
must inform the State Water Board immediately of any information regarding a
violation of the foregoing. The Recipient understands that failure to comply with
this provision may subject the State Water Board to loss of federal funds. The
Recipient agrees to compensate the State Water Board for any such funds lost due
to its failure to comply with this condition, or the failure of its contractors or
subcontractors to comply with this condition. The State Water Board may
unilaterally terminate this Agreement if the Recipient that is a private entity is
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Project No.: C-06-8029-110
EXHIBIT E – PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
E-3
determined to have violated the foregoing. Trafficking Victims Protection Act of
2000.
(B) Super Cross-Cutters - Civil Rights Obligations. The Recipient must comply with the following
federal non-discrimination requirements:
(1) Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color,
and national origin, including limited English proficiency (LEP).
(2) Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination against persons
with disabilities.
(3) The Age Discrimination Act of 1975, which prohibits age discrimination.
(4) Section 13 of the Federal Water Pollution Control Act Amendments of 1972, which prohibits
discrimination on the basis of sex.
(5) 40 CFR Part 7, as it relates to the foregoing.
(C) WRRDA Conditions
(1) Architectural and engineering contracts. Where the Recipient contracts for program
management, construction management, feasibility studies, preliminary engineering,
design, engineering, surveying, mapping, or architectural related services, the Recipient
shall ensure that any such contract is negotiated in the same manner as a contract for
architectural and engineering services is negotiated under chapter 11 of title 40, United
States Code, or an equivalent State qualifications-based requirement as determined by the
State Water Board.
(2) Fiscal sustainability. The Recipient certifies that it has developed and is implementing a
fiscal sustainability plan for the Project that includes an inventory of critical assets that are a
part of the Project, an evaluation of the condition and performance of inventoried assets or
asset groupings, a certification that the recipient has evaluated and will be implementing
water and energy conservation efforts as part of the plan, and a plan for maintaining,
repairing, and, as necessary, replacing the Project and a plan for funding such activities.
(D) Cross-Cutters
1) Executive Order No. 11246. The Recipient shall include in its contracts and subcontracts related
to the Project the following provisions:
"During the performance of this contract, the contractor agrees as follows:"(a) The contractor will not
discriminate against any employee or applicant for employment because of race, creed, color, or
national origin. The contractor will take affirmative action to ensure that applicants are employed, and
that employees are treated during employment, without regard to their race, creed, color, or national
origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion,
or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. The contractor agrees to post in
conspicuous places, available to employees and applicants for employment, notices to be provided by
the contracting officer setting forth the provisions of this nondiscrimination clause.
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Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT E – PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
E-4
"(b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of
the contractor, state that all qualified applicants will receive consideration for employment without
regard to race, creed, color, or national origin.
"(c) The contractor will send to each labor union or representative of workers with which he has a
collective bargaining agreement or other contract or understanding, a notice, to be provided by the
agency contracting officer, advising the labor union or workers' representative of the contractor's
commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post
copies of the notice in conspicuous places available to employees and applicants for employment.
"(d) The contractor will comply with all provisions of Executive Order No. 11246 of Sept. 24, 1965, and
of the rules, regulations, and relevant orders of the Secretary of Labor.
"(e) The contractor will furnish all information and reports required by Executive Order No. 11246 of
September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant
thereto, and will permit access to his books, records, and accounts by the contracting agency and the
Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations,
and orders.
"(f) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract
or with any of such rules, regulations, or orders, this contract may be cancelled, terminated or
suspended in whole or in part and the contractor may be declared ineligible for further Government
contracts in accordance with procedures authorized in Executive Order No. 11246 of Sept 24, 1965,
and such other sanctions may be imposed and remedies invoked as provided in Executive Order No.
11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as
otherwise provided by law.
"(g) The contractor will include the provisions of Paragraphs (1) through (7) in every subcontract or
purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued
pursuant to Section 204 of Executive Order No. 11246 of Sept. 24, 1965, so that such provisions will be
binding upon each subcontractor or vendor. The contractor will take such action with respect to any
subcontract or purchase order as the contracting agency may direct as a means of enforcing such
provisions including sanctions for noncompliance: Provided, however, That in the event the contractor
becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such
direction by the contracting agency, the contractor may request the United States to enter into such
litigation to protect the interests of the United States."
(2) Disadvantaged Business Enterprises (40 CFR Part 33). The Recipient agrees to comply
with the requirements of USEPA’s Program for Utilization of Small, Minority and Women’s
Business Enterprises. The DBE rule can be accessed at www.epa.gov/osbp . The
Recipient shall comply with, and agrees to require its prime contractors to comply with 40
CFR Section 33.301, and retain all records documenting compliance with the six good faith
efforts. (IUP)
(3) Procurement Prohibitions under Section 306 of the Clean Air Act and Section 508 of the
Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and
the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or
Loans; 42 USC § 7606; 33 USC § 1368. Except where the purpose of this Agreement is to
remedy the cause of the violation, the Recipient may not procure goods, services, or
materials from suppliers excluded under the federal System for Award Management:
http://www.sam.gov/ .
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Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT E – PROGRAMMATIC CONDITIONS & CROSS-CUTTERS
E-5
(4) Uniform Relocation and Real Property Acquisition Policies Act, Pub. L. 91-646, as
amended; 42 USC §§4601-4655. The Recipient must comply with the Act’s implementing
regulations at 49 CFR 24.101 through 24.105.
(5) The Recipient agrees that if its network or information system is connected to USEPA
networks to transfer data using systems other than the Environmental Information
Exchange Network or USEPA’s Central Data Exchange, it will ensure that any connections
are secure.
(E) Geospatial Data Standards
All geospatial data created pursuant to this Agreement that is submitted to the State Water Board
for use by USEPA or that is submitted directly to USEPA must be consistent with Federal
Geographic Data Committee endorsed standards. Information on these standards may be found
at www.fgdc.gov.
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Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
F-1
EXHIBIT F – SCHEDULE OF SYSTEM OBLIGATIONS
Except for the following and the Obligation evidenced by this Agreement, the Recipient certifies that it has
no outstanding System Obligations or Other Material Obligations, and that it is in compliance with all
applicable additional debt provisions of the following:
The following outstanding debt is senior to the Obligation:
Title
The following outstanding debt is on parity with the Obligation:
Title
I-Bank CIEDB-B08-087
USBancorp
SunTrust-443-5006721-001
The following outstanding debt is subordinate to the Obligation:
Title
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Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT G – DAVIS-BACON REQUIREMENTS
G-1
For the purposes of this Exhibit only, “subrecipient” or “sub recipient” means Recipient as defined in this
Agreement.
For the purposes of this Exhibit only, “recipient” or “State recipient” means the State Water Board.
I. Requirements Under the Water Resources Reform and Development Act of 2014
(WRRDA) For Subrecipients That Are Governmental Entities:
If a sub recipient has questions regarding when Davis-Bacon (DB) applies, obtaining the correct DB wage
determinations, DB provisions, or compliance monitoring, it may contact the State Water Board at
DavisBacon@waterboards.ca.gov or phone (916) 327-7323. The recipient or sub recipient may also obtain
additional guidance from DOL’s web site at http://www.dol.gov/whd/.
1. Applicability of the Davis-Bacon (DB) prevailing wage requirements.
Under the Water Resources Reform and Development Act of 2014 (WRRDA) -, DB prevailing wage
requirements apply to the construction, alteration, and repair of treatment works carried out in whole or in
part with assistance made available by a State water pollution control revolving fund. If a sub recipient
encounters a unique situation at a site that presents uncertainties regarding DB applicability, the sub
recipient must discuss the situation with the recipient State before authorizing work on that site.
2. Obtaining Wage Determinations.
(a) Sub recipients shall obtain the wage determination for the locality in which a covered activity subject to
DB will take place prior to issuing requests for bids, proposals, quotes or other methods for soliciting
contracts (solicitation) for activities subject to DB. These wage determinations shall be incorporated into
solicitations and any subsequent contracts. Prime contracts must contain a provision requiring that
subcontractors follow the wage determination incorporated into the prime contract.
(i) While the solicitation remains open, the sub recipient shall monitor www.wdol.gov weekly
to ensure that the wage determination contained in the solicitation remains current. The sub recipients
shall amend the solicitation if DOL issues a modification more than 10 days prior to the closing date (i.e.
bid opening) for the solicitation. If DOL modifies or supersedes the applicable wage determination less
than 10 days prior to the closing date, the sub recipients may request a finding from the State recipient
that there is not a reasonable time to notify interested contractors of the modification of the
wage determination. The State recipient will provide a report of its findings to
the sub recipient.
(ii) If the sub recipient does not award the contract within 90 days of the closure of the solicitation, any
modifications or supersedes DOL makes to the wage determination contained in the solicitation shall be
effective unless the State recipient, at the request of the sub recipient, obtains an extension of the 90
day period from DOL pursuant to 29 CFR 1.6(c)(3)(iv). The sub recipient shall monitor www.wdol.gov on a
weekly basis if it does not award the contract within 90 days of closure of the solicitation to ensure that
wage determinations contained in the solicitation remain current.
(b) If the sub recipient carries out activity subject to DB by issuing a task order, work assignment or
similar instrument to an existing contractor (ordering instrument) rather than by publishing a solicitation,
the sub recipient shall insert the appropriate DOL wage determination from www.wdol.gov into the
ordering instrument.
(c) Sub recipients shall review all subcontracts subject to DB entered into by prime contractors to verify
that the prime contractor has required its subcontractors to include the applicable wage determinations.
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G-2
(d) As provided in 29 CFR 1.6(f), DOL may issue a revised wage determination applicable to a sub
recipient’s contract after the award of a contract or the issuance of an ordering instrument if DOL
determines that the sub recipient has failed to incorporate a wage determination or has used a wage
determination that clearly does not apply to the contract or ordering instrument. If this occurs, the sub
recipient shall either terminate the contract or ordering instrument and issue a revised solicitation or
ordering instrument or incorporate DOL’s wage determination retroactive to the beginning of the
contract or ordering instrument by change order. The sub recipient’s contractor must be compensated for
any increases in wages resulting from the use of DOL’s revised wage determination.
3. Contract and Subcontract provisions.
(a) The Recipient shall insure that the sub recipient(s) shall insert in full in any contract in excess of
$2,000 which is entered into for the actual construction, alteration and/or repair, including painting and
decorating, of a treatment work under the CWSRF - financed in whole or in part from Federal funds or in
accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any
contract of a Federal agency to make a loan, grant or annual contribution (except where a different
meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts
listed in § 5.1 or FY 2014 Water Resource Reform and Development Act, the following clauses:
(1) Minimum wages.
(i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally
and not less often than once a week, and without subsequent deduction or rebate on any account (except
such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the
Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash
equivalents thereof) due at time of payment computed at rates not less than those contained in the wage
determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of
any contractual relationship which may be alleged to exist between the contractor and such laborers and
mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section
1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such
laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular
contributions made or costs incurred for more than a weekly period (but not less often than quarterly)
under plans, funds, or programs which cover the particular weekly period, are deemed to be
constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid
the appropriate wage rate and fringe benefits on the wage determination for the classification of work
actually performed, without regard to skill, except as provided in §5.5(a)(4). Laborers or mechanics
performing work in more than one classification may be compensated at the rate specified for each
classification for the time actually worked therein: Provided that the employer's payroll records accurately
set forth the time spent in each classification in which work is performed. The wage determination
(including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this
section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the contractor and its
subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by
the workers. Sub recipients may obtain wage determinations from the U.S. Department of Labor’s
web site, www.dol.gov.
(ii)(A) The sub recipient(s), on behalf of EPA, shall require that any class of laborers or mechanics,
including helpers, which is not listed in the wage determination and which is to be employed under the
contract shall be classified in conformance with the wage determination. The State award official shall
approve a request for an additional classification and wage rate and fringe benefits therefore only when
the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the
wage determination; and
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EXHIBIT G – DAVIS-BACON REQUIREMENTS
G-3
(2) The classification is utilized in the area by the construction industry; and
(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable
relationship to the wage rates contained in the wage determination.
(B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or
their representatives, and the sub recipient(s) agree on the classification and wage rate (including the
amount designated for fringe benefits where appropriate), documentation of the action taken and the
request, including the local wage determination shall be sent by the sub recipient (s) to the State award
official. The State award official will transmit the request, to the Administrator of the Wage and Hour
Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210 and
to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will
approve, modify, or disapprove every additional classification request within 30 days of receipt and so
advise the State award official or will notify the State award official within the 30-day period that additional
timeis necessary.
(C) In the event the contractor, the laborers or mechanics to be employed in the classification or their
representatives, and the sub recipient(s) do not agree on the proposed classification and wage rate
(including the amount designated for fringe benefits, where appropriate), the award official shall refer the
request and the local wage determination, including the views of all interested parties and the
recommendation of the State award official, to the Administrator for determination. The request shall be
sent to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized
representative, will issue a determination within 30 days of receipt of the request and so advise the
contracting officer or will notify the contracting officer within the 30-day period that additional time is
necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs
(a)(1)(ii)(B) or (C) of this section, shall be paid to all workers performing work in the classification under
this contract from the first day on which work is performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics
includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the
benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash
equivalent thereof.
(iv) If the contractor does not make payments to a trustee or other third person, the contractor may
consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated
in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has
found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act
have been met. The Secretary of Labor may require the contractor to set aside in a separate account
assets for the meeting of obligations under the plan or program.
(2) Withholding. The sub recipient(s) shall upon written request of the EPA Award Official or an
authorized representative of the Department of Labor, withhold or cause to be withheld from the
contractor under this contract or any other Federal contract with the same prime contractor, or any other
federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the
same prime contractor, so much of the accrued payments or advances as may be considered necessary
to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the
contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to
pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site
of the work, all or part of the wages required by the contract, the (Agency) may, after written notice to the
contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension
of any further payment, advance, or guarantee of funds until such violations have ceased.
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City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT G – DAVIS-BACON REQUIREMENTS
G-4
(3) Payrolls and basic records.
(i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of
the work and preserved for a period of three years thereafter for all laborers and mechanics working at
the site of the work. Such records shall contain the name, address, and social security number of each
such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions
or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in
section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made
and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the
wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing
benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the contractor
shall maintain records which show that the commitment to provide such benefits is enforceable, that the
plan or program is financially responsible, and that the plan or program has been communicated in writing
to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost
incurred in providing such benefits. Contractors employing apprentices or trainees under approved
programs shall maintain written evidence of the registration of apprenticeship programs and certification
of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates
prescribed in the applicable programs.
(ii)(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy
of all payrolls to the sub recipient, that is, the entity that receives the subgrant or loan from the State
capitalization grant recipient. Such documentation shall be available on request of the State recipient or
EPA. As to each payroll copy received, the sub recipient shall provide written confirmation in a form
satisfactory to the State indicating whether or not the project is in compliance with the requirements of 29
CFR 5.5(a)(1) based on the most recent payroll copies for the specified week. The payrolls shall set out
accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i),
except that full social security numbers and home addresses shall not be included on the weekly payrolls.
Instead the payrolls shall only need to include an individually identifying number for each employee (e.g.,
the last four digits of the employee's social security number). The required weekly payroll information
may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage
and Hour Division Web site at https://www.dol.gov/whd/forms/index.htm or its successor site. The prime
contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and
subcontractors shall maintain the full social security number and current address of each covered worker,
and shall provide them upon request to the sub recipient(s) for transmission to the State or EPA if
requested by EPA, the State, the contractor, or the Wage and Hour Division of the Department of Labor
for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a
violation of this section for a prime contractor to require a subcontractor to provide addresses and social
security numbers to the prime contractor for its own records, without weekly submission to the sub
recipient(s).
(B) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the
contractor or subcontractor or his or her agent who pays or supervises the payment of the persons
employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under § 5.5
(a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5
(a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and
complete;
(2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on
the contract during the payroll period has been paid the full weekly wages earned, without rebate,
either directly or indirectly, and that no deductions have been made either directly or indirectly from the
full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3;
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Item 13
City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT G – DAVIS-BACON REQUIREMENTS
G-5
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe
benefits or cash equivalents for the classification of work performed, as specified in the applicable wage
determination incorporated into the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse side of Optional
Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” required by
paragraph (a)(3)(ii)(B) of this section.
(D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil
or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States
Code.
(iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this
section available for inspection, copying, or transcription by authorized representatives of the State, EPA
or the Department of Labor, and shall permit such representatives to interview employees during working
hours on the job. If the contractor or subcontractor fails to submit the required records or to make them
available, the Federal agency or State may, after written notice to the contractor, sponsor, applicant, or
owner, take such action as may be necessary to cause the suspension of any further payment, advance,
or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such
records available may be grounds for debarment action pursuant to 29 CFR 5.12.
(4) Apprentices and trainees
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they
performed when they are employed pursuant to and individually registered in a bona fide apprenticeship
program registered with the U.S. Department of Labor, Employment and Training Administration, Office of
Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency
recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment
as an apprentice in such an apprenticeship program, who is not individually registered in the program, but
who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State
Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice.
The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be
greater than the ratio permitted to the contractor as to the entire work force under the registered
program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise
employed as stated above, shall be paid not less than the applicable wage rate on the wage
determination for the classification of work actually performed. In addition, any apprentice performing
work on the job site in excess of the ratio permitted under the registered program shall be paid not less
than the applicable wage rate on the wage determination for the work actually performed. Where a
contractor is performing construction on a project in a locality other than that in which its program is
registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate)
specified in the contractor's or sub contractor's registered program shall be observed. Every apprentice
must be paid at not less than the rate specified in the registered program for the apprentice's level of
progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage
determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the
apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must
be paid the full amount of fringe benefits listed on the wage determination for the applicable classification.
If the Administrator determines that a different practice prevails for the applicable apprentice
classification, fringes shall be paid in accordance with that determination. In the event the Office of
Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by
the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to
utilize apprentices at less than the applicable predetermined rate for the work performed until an
acceptable program is approved.
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Item 13
City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT G – DAVIS-BACON REQUIREMENTS
G-6
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the
predetermined rate for the work performed unless they are employed pursuant to and individually
registered in a program which has received prior approval, evidenced by formal certification by the U.S.
Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on
the job site shall not be greater than permitted under the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less than the rate specified in the approved program for
the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the
applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of
the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full
amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour
Division determines that there is an apprenticeship program associated with the corresponding
journeyman wage rate on the wage determination which provides for less than full fringe benefits for
apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in
a training plan approved by the Employment and Training Administration shall be paid not less than the
applicable wage rate on the wage determination for the classification of work actually performed. In
addition, any trainee performing work on the job site in excess of the ratio permitted under the registered
program shall be paid not less than the applicable wage rate on the wage determination for the work
actually performed. In the event the Employment and Training Administration withdraws approval of a
training program, the contractor will no longer be permitted to utilize trainees at less than the applicable
predetermined rate for the work performed until an acceptable program is approved.
(iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part
shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as
amended and 29 CFR part 30.
(5) Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29
CFR part 3, which are incorporated by reference in this contract.
(6) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses
contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the EPA determines may by
appropriate, and also a clause requiring the subcontractors to include these clauses in any lower tier
subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower
tier subcontractor with all the contract clauses in 29 CFR 5.5.
(7) Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for
termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR
5.12.
(8) Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the
Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by
reference in this contract.
(9) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this
contract shall not be subject to the general disputes clause of this contract. Such disputes shall be
resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6,
and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its
subcontractors) and sub recipient(s), State, EPA, the U.S. Department of Labor, or the employees or their
representatives.
(10) Certification of eligibility. (i) By entering into this contract, the contractor certifies that neither it (nor he
or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to
be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for
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Item 13
City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT G – DAVIS-BACON REQUIREMENTS
G-7
award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29
CFR 5.12(a)(1). (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18
U.S.C. 1001.
4. Contract Provision for Contracts in Excess of $100,000.
(a) Contract Work Hours and Safety Standards Act. The sub recipient shall insert the following clauses
set forth in paragraphs (a)(1), (2), (3), and (4) of this section in full in any contract in an amount in excess
of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act.
These clauses shall be inserted in addition to the clauses required by Item 3, above or 29 CFR 4.6. As
used in this paragraph, the terms laborers and mechanics include watchmen and guards.
(1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work
which may require or involve the employment of laborers or mechanics shall require or permit any such
laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of
forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less
than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such
workweek.
(2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the
clause set forth in paragraph (a)(1) of this section the contractor and any subcontractor responsible
therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be
liable to the United States (in the case of work done under contract for the District of Columbia or a
territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be
computed with respect to each individual laborer or mechanic, including watchmen and guards,
employed in violation of the clause set forth in paragraph (a)(1) of this section, in the sum of $25 for each
calendar day on which such individual was required or permitted to work in excess of the standard
workweek of forty hours without payment of the overtime wages required by the clause set forth in
paragraph (a)(1) of this section.
(3) Withholding for unpaid wages and liquidated damages. The sub recipient, upon written request of the
EPA Award Official or an authorized representative of the Department of Labor, shall withhold or cause to
be withheld, from any moneys payable on account of work performed by the contractor or subcontractor
under any such contract or any other Federal contract with the same prime contractor, or any other
federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by
the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of
such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set
forth in paragraph (b)(2) of this
section.
(4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in
paragraph (a)(1) through (4) of this section and also a clause requiring the subcontractors to include
these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by
any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (a)(1) through (4) of
this section. (b) In addition to the clauses contained in Item 3, above, in any contract subject only to the
Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29 CFR 5.1,
the Sub recipient shall insert a clause requiring that the contractor or subcontractor shall maintain payrolls
and basic payroll records during the course of the work and shall preserve them for a period of three
years from the completion of the contract for all laborers and mechanics, including guards and watchmen,
working on the contract. Such records shall contain the name and address of each such employee,
social security number, correct classifications, hourly rates of wages paid, daily and weekly number of
hours worked, deductions made, and actual wages paid. Further, the Sub recipient shall insert in any
such contract a clause providing hat the records to be maintained under this paragraph shall be made
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Item 13
City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT G – DAVIS-BACON REQUIREMENTS
G-8
available by the contractor or subcontractor for inspection, copying, or transcription by authorized
representatives of the (write the name of agency) and the Department of Labor, and the contractor or
subcontractor will permit such representatives to interview employees during working hours on the job.
5. Compliance Verification
(a) The sub recipient shall periodically interview a sufficient number of employees entitled to DB
prevailing wages (covered employees) to verify that contractors or subcontractors are paying the
appropriate wage rates. As provided in 29 CFR 5.6(a)(3), all interviews must be conducted in confidence.
The sub recipient must use Standard Form 1445 (SF 1445) or equivalent documentation to memorialize
the interviews. Copies of the SF 1445 are available from EPA on request.
(b) The sub recipient shall establish and follow an interview schedule based on its assessment of the
risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or
subcontract. Sub recipients must conduct more frequent interviews if the initial interviews or other
information indicated that there is a risk that the contractor or subcontractor is not complying with DB.
Sub recipients shall immediately conduct interviews in response to an alleged violation of the prevailing
wage requirements. All interviews shall be conducted in confidence.
(c) The sub recipient shall periodically conduct spot checks of a representative sample of weekly payroll
data to verify that contractors or subcontractors are paying the appropriate wage rates. The sub recipient
shall establish and follow a spot check schedule based on its assessment of the risks of noncompliance
with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a
minimum, if practicable, the sub recipient should spot check payroll data within two weeks of each
contractor or subcontractor’s submission of its initial payroll data and two weeks prior to the completion
date the contract or subcontract. Sub recipients must conduct more frequent spot checks if the initial spot
check or other information indicates that there is a risk that the contractor or subcontractor is not
complying with DB. In addition, during the examinations the sub recipient shall verify evidence of fringe
benefit plans and payments there under by contractors and subcontractors who claim credit for
fringe benefit contributions.
(d) The sub recipient shall periodically review contractors and subcontractors use of apprentices and
trainees to verify registration and certification with respect to apprenticeship and training programs
approved by either the U.S Department of Labor or a state, as appropriate, and that contractors and
subcontractors are not using disproportionate numbers of, laborers, trainees and apprentices. These
reviews shall be conducted in accordance with the schedules for spot checks and interviews
described in Item 5(b) and (c) above.
(e) Sub recipients must immediately report potential violations of the DB prevailing wage requirements to
the EPA DB contact listed above and to the appropriate DOL Wage and Hour District Office listed at
http://www.dol.gov/whd/america2.htm.
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Item 13
City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT H – COMPLIANCE WITH CROSS-CUTTING STATE AUTHORITIES
H-1
1. WATER CONSERVATION REGULATIONS
The Recipient certifies that it complies with and shall continue to comply the requirements of Article 2 of
Chapter 3.5 of Division 3 of Title 23 of the California Code of Regulations. The Recipient will include a
discussion of its implementation of such requirements, as applicable, in reports submitted pursuant to
Section 2.15 of this Agreement.
2. CALIFORNIA DEBT INVESTMENT ADVISORY COMMISSION (CDIAC)
Where Recipient is a public entity, Recipient acknowledges its responsibility to file debt obligations with
the CDIAC. Recipient understands that CDIAC has waived filing fees for State Water Board SRF debt.
3. COMPLIANCE WITH STATE REQUIREMENTS
Recipient represents that it complies with the following conditions precedent and shall continue to
maintain compliance:
(a) Monthly Water Diversion Reporting
If Recipient is a water diverter, Recipient must maintain compliance with Water Code section
5103, subdivision (e)(2)(A) by submitting monthly diversion reports to the Division of Water Rights
of the State Water Resources Control Board.
(b) Public Works Contractor Registration with Department Of Industrial Relations
To bid for public works contracts, Recipient and Recipient’s subcontractors must register with the
Department of Industrial Relations as required by Labor Code sections 1725.5 and 1771.1.
(c) Volumetric Pricing & Water Meters
If Recipient is an “urban water supplier” as defined by Water Code section 10617, Recipient must
charge each customer for actual water volume measured by water meter according to the
requirements of Water Code sections 526 and 527. Section 527 further requires that such
suppliers not subject to section 526 install water meters on all municipal and industrial service
connections within their service area by 2025.
(d) Urban Water Management Plan
If Recipient is an “urban water supplier” as defined by Water Code section 10617, the Recipient
certifies that this Project complies with the Urban Water Management Planning Act (Water Code,
§ 10610 et seq.). This shall constitute a condition precedent to this Agreement.
(e) Urban Water Demand Management
If Recipient is an “urban water supplier” as defined by Water Code section 10617, Recipient must
comply with water conservation measures established by SBx7-7. (Water Code, Sec. 10608.56.)
(f) Delta Plan Consistency Findings
If Recipient is a state or local public agency and the proposed action is covered by the Delta Plan,
Recipient must submit certification of project consistency with the Delta Plan to the Delta
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Item 13
City of San Luis Obispo
Agreement No.: SWRCB0000000000D180100300
Project No.: C-06-8029-110
EXHIBIT H – COMPLIANCE WITH CROSS-CUTTING STATE AUTHORITIES
H-2
Stewardship Council according to the requirements of Water Code section 85225 and California
Code of Regulations, title 23, section 5002.
(g) Agricultural Water Management Plan Consistency
If Recipient is an agricultural water supplier as defined by Water Code section 10608.12,
Recipient must comply with Agricultural Water Management Planning requirements as mandated
by Water Code section 10852.
(h) Charter City Project Labor Requirements
If Recipient is a charter city as defined in Labor Code section 1782, subdivision (d)(2), Recipient
will comply with the requirements of Labor Code section 1782 and Public Contract Code section
2503 as discussed in the following subparts (1) and (2).
(1) Prevailing Wage
Recipient certifies that it is eligible for state funding assistance notwithstanding Labor
Code section 1782.
Specifically, Recipient certifies that no charter provision nor ordinance authorizes a
construction project contractor not to comply with Labor Code’s prevailing wage rate
requirements, nor, within the prior two years (starting from January 1, 2015 or after) has
the city awarded a public works contract without requiring the contractor to comply with
such wage rate requirements according to Labor Code section 1782.
(2) Labor Agreements
Recipient certifies that no charter provision, initiative, or ordinance limits or constrains the
city’s authority or discretion to adopt, require, or utilize project labor agreements that
include all the taxpayer protection antidiscrimination provisions of Public Contract Code
section 2500 in construction projects, and that Recipient is accordingly eligible for state
funding or financial assistance pursuant to Public Contract Code section 2503.
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Item 13
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Item 13
RESOLUTION NO. 10761 (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE REIMBURSEMENT TO
THE STATE WATER RESOURCES CONTROL BOARD FOR THE
FINANCING OF THE WATER RESOURCE RECOVERY FACILITY
UPGRADE
WHEREAS, the City of San Luis Obispo desires to finance the cost of the construction of
the Water Resource Recovery Facility Upgrade (the "Project"); and
WHEREAS, the City of San Luis Obispo intends to finance the construction of the Project
with moneys ("Project Funds") provided by the State of California, acting by and through the State
Water Resources Control Board (State Water Board); and.
WHEREAS, the State Water Board may fund the Project Funds with proceeds from the
sale of obligations the interest upon which is excluded from gross income for federal income tax
purposes (the "Obligations"); and
WHEREAS, prior to either the issuance of the Obligations or the approval by the State
Water Board of the Project Funds the City of San Luis Obispo desires to incur certain capital
expenditures (the "Expenditures") with respect to the Project from available moneys of the City of
San Luis Obispo.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The Director of Utilities or her designee is hereby authorized and directed to
sign and file, for and on behalf of the City of San Luis Obispo, a Financial Assistance Application
for a financing agreement from the State Water Resources Control Board for the construction of
the Water Resources Recovery Facility (the "Project").
SECTION 2. This Authorized Representative, or her designee, is designated to provide
the assurance, certifications, and commitments required for the financial assistance application,
including executing a financial assistance agreement from the State Water Resources Control
Board and any amendments or changes thereto.
SECTION 3. The Authorized Representative or her designee, is designated to represent
the City of San Luis Obispo in carrying out the City's responsibilities under the financing
agreement, including certifying disbursement requests on behalf of the City of San Luis Obispo
and compliance with applicable state and federal laws.
R 10761
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Item 13
Resolution No. 10761 (2016) Page 2
Upon motion of Council Member Christianson, seconded by Council Member Pease, and on the
following roll call vote:
AYES: Council Members Christianson, Gomez and Pease,
Vice Mayor Rivoire, and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this 13th day of December 2016.
AL A
M or fieidi Hamra
ATTEST:
Carrie Gallagher
City Clerk
APPROVED AS TO FORM:
Y. 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 sf day of `y r- , 7j -,( (-P
Q L
Carrie Gallagher
City Clerk
R 10761
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Item 13
Meeting Date: 11/13/2018
FROM: Derek Johnson, City Manager
J. Christine Dietrick, City Attorney
Carrie Mattingly, Utilities Director
Justin Pickard, Water Systems Consulting, Inc., WRRF Project Assistant Program
Manager
SUBJECT: APPROVAL OF A COMMUNITY WORKFORCE AGREEMENT
(FORMERLY KNOWN AS PROJECT LABOR AGREEMENT) FOR THE
WATER RESOURCE RECOVERY FACILITY PROJECT
RECOMMENDATION
Authorize the City Manager to enter into a Community Workforce Agreement (CWA) in a final
form approved by the City Attorney (substantially in the form provided as Attachment A) with
The Tri-Counties Building and Construction Trades Council, AFL-CIO and The Signatory Craft
Councils and Unions for the Water Resource Recovery Facility Project (WRRF).
DISCUSSION
Report in Brief
The purpose of this item is for Council to consider the tentative agreement negotiated between
City and Trades Council negotiating teams and, if acceptable, authorize the City Manager to
enter into a Community Workforce Agreement for the proposed Water Resource Recovery
Facility, subject to final approval as to form by the City Attorney. The agreement outlines basic
terms related to union activities, project labor procurement and referral protocols, work stoppage,
wages and benefits, management rights, dispute resolution, covered employees, and other terms
identified in Articles 1-20 of the CWA and the related attachments.
The CWA was negotiated by negotiating teams representing the City and the Tri-Counties
Building and Construction Trades Council, AFL-CIO and the Signatory Councils and Unions,
following direction from the City Council on July 10, 2018.
The fiscal impacts of a CWA on construction costs is not precisely quantifiable. Contradictory
literature is readily and publicly available that asserts that CWAs both increase and decrease
project costs. Existing public contracting laws and the terms of the City’s state funding require
the City to monitor and report on certain labor compliance programs. Thus, this report outlines
those estimated costs and additional incremental costs that staff believes can reasonably be
anticipated to ensure compliance with the CWA. Those incremental costs for administering the
technical requirements of the CWA are estimated to range from approximately $179,709 and
$274,306.
.
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Background
A Project Labor Agreement, or PLA, is a pre-hire collective bargaining agreement between a
project owner and the construction trades. The agreement establishes the terms and conditions of
employment for the covered project. It is also commonly known as a community workforce
agreement, project stabilization agreement, or a community partnership agreement. For purposes
of this report and consistent with the title of the proposed agreement, hereinafter the tentative
agreement that is the subject of this report shall be referred to as a Community Workforce
Agreement, or CWA.
On July 10, 2018, City Council held a study session to gain understanding of the considerations
associated with Project Labor Agreements on public works projects (See Attachment B for July
10 Council Agenda Report). During the study session, City Council discussed the potential
benefits, risks, and costs of a Project Labor Agreement on the Water Resource Recovery Facility
(WRRF) Project (see Table 1) and heard extensive public testimony.
Table 1: Potential Risks, Costs & Benefits of Options
Current
City
Contract
Modified City Contract With
Local Hire Preference CWA
Benefits
No schedule
impact
Local worker participation goals
established
No schedule impact
Broad discretion for other workforce
goals
Local worker participation
goals established and monitored
and potential of increased local
worker participation and
training
Provides authority for union
contractors to prefer local
workers, which otherwise
would not be permitted
Work stoppages prohibited
Costs
No additional
cost
Local hire program administration
cost
Potential for increased construction
cost
Contract language development cost
Negotiation costs
PLA administration costs
Potential for increased
construction cost
Risks
Potential for
reduced local
worker
participation
Potential for
work stoppage
Potential for work stoppage
Potential for prolonged bid review &
award
Union contractors cannot prefer local
workers absent a PLA,
notwithstanding established goals
Potential delay to Construction
Management procurement
Potential for reduced non-union
local contractor participation
Potential construction schedule
delay
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At the conclusion of deliberations, by consensus, the City Council provided the following
direction to staff:
1. Proceed with the negotiation of a CWA for inclusion with the bid package for the WRRF,
including local hiring preference components.
a. CWA shall be negotiated by October 12, 2018 to incorporate the CWA agreement and
requirements into the WRRF bid documents and return to the City Council for approval,
maintaining the established project bidding schedule.
b. If a CWA is not negotiated by October 12, 2018, proceed with incorporating enhanced
local hire outreach requirements into WRRF bid documents and return to the City
Council for approval. (A draft of those provisions is included with this report as
Attachment C)
c. Pursue contract provisions that do not adversely affect project quality or schedule and do
not significantly increase costs.
NEGOTIATIONS
Preparation
On July 11, 2018, the City Attorney commenced communications with Ray Van der Nat, the
attorney for the Tri-Counties Building and Construction Trades Council (Trades Council), which
represents 33 craft unions in San Luis Obispo, Santa Barbara, and Ventura Counties. The City
Attorney also began the process to select and retain outside legal counsel to assist the City in its
negotiations. After conducting interviews, Mike Vlaming of Vlaming Associates was selected
and retained as the City’s CWA legal counsel/lead negotiator on July 18, 2018. Other negotiating
team members were City Attorney Dietrick, Utilities Director Mattingly, and WRRF Project
Assistant Program Manager Pickard, with the support and direction of the City Manager.
The negotiating team worked to further define negotiation parameters and priorities and
developed a negotiations plan to achieve tentative agreement no later than October 12, 2018.
Key Provisions
The negotiating team engaged with Trades Council representatives on August 10, 2018 in a half-
day in-person negotiating session. The draft agreement proposed by the Trades Council was
reviewed and City Council direction was discussed. City bargaining objectives, public input
received related to the Council study session, and input conveyed to staff and the City Council
by local contractors and contractors’ association representatives was shared.
Following the initial in-person meeting, the City’s negotiating team developed the first in a series
of four proposals and counter-proposals that were exchanged before reaching tentative
agreement on the substantive terms and conditions of a CWA, on October 11, 2018.
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Local Worker Participation. Pursuant to Council direction, the City’s primary objective in
negotiating a CWA with the Trades Council was to agree on terms calculated to maximize
employment opportunities on the WRRF Project for local residents and local contractors who
employ local workers. Without a CWA, unions must follow their standard referral procedures,
which typically require the unions to refer workers to projects based on the order in which they
registered with the union out-of-work list (i.e., first come, first served), without consideration of
local residency.
Thus, absent a CWA, if the low bidder on the project is a union signatory contractor, that
contractor and affiliated trades unions would have no legal ability to implement local hire
preferences, notwithstanding any contractual enhanced outreach or local hire provisions the City
might include in its bid documents. Contractors could enhance outreach efforts to encourage
local workers to add their names to the relevant union out of work list from which signatory
contractors are required to procure workers. However, the union would be required to make
referrals based on which workers registered first and the contractors would be required to accept
referrals from the union out-of-work list on a “first-in, first-out” basis, without regard to worker
residence location. A CWA allows signatory unions to modify their normal worker referral
procedures by giving preference to targeted work groups, including local residents, regardless of
their position on the out-of-work list. In other words, under the terms of a CWA like the one
recommended here, the union hall has the legal authority and commits to prioritize local workers
for employment on the City’s project. Non-union shops are not normally required to procure
labor from the out of work list and could implement means to directly recruit and prefer local
workers to work on the project, but employment of such workers cannot be mandated absent a
CWA.
Non-union workers can be referred to the WRRF Project by registering with the union hiring hall
and by paying the applicable representation fees during the course of their employment on the
project. Representation or “window fees” may or may not differ from union membership dues,
depending on trade and the requirements of each local. However, it is important to note that
non-union workers are not required actually to join a union to be eligible for employment on the
WRRF Project, they are not precluded from working for non-union contractors or on other non-
union projects, and discrimination in referral or hiring of workers on any public works project
based on union membership is legally prohibited. In other words, under a CWA, the union hall
serves as the point of contact and conduit for labor procurement through which all workers are
referred to the covered project, but workers do not have to become union members.
In recognition of the Council direction, the initial draft CWA proposed by the Trades Council
included provisions for preferential hiring of local workers, which is not traditionally a standard
provision. In the final tentative agreement, a goal of 30% of the total construction labor hours
worked on the WRRF Project has been established for local workers. A tiered system will be
utilized for the referral of local workers, with preference given to City of San Luis Obispo
residents first (Tier 1), San Luis Obispo County residents second (Tier 2), Santa Barbara and
Monterey Counties residents third (Tier 3), and Ventura County residents fourth (Tier 4). Unions
cannot refer workers in lower tiers to the WRRF Project until their best efforts have been made
to fulfill the 30% local worker goal from the highest tier (i.e., Tier 1). In the event the 30% local
worker goal has been met, unions will continue to refer workers to the WRRF Project using the
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tiered system to further increase participation on the project by local residents.
At the request of the Trades Council, the City’s negotiating team ultimately agreed to
recommend expanding the definition of local workers beyond the focus areas initially identified
by the Council to include Ventura County residents. Staff felt this was a reasonable concession to
advance negotiations on higher priority issues discussed below. The Trades Council represents
craft unions in Ventura County along with those located in San Luis Obispo and Santa Barbara
Counties, and inclusion of Ventura County aligns the CWA tiers with the Trades Council’s
regional representation area, which was necessary to obtain approval of the CWA from the
Trades Council’s affiliates.
The local worker hiring preference will be administered on the City’s behalf by the Community
Workforce Coordinator in cooperation with the unions, WRRF Project contractors, and
subcontractors. Contractors and subcontractors will be required to prepare and submit manpower
utilization plans detailing the schedule for the hiring of local residents to meet the local worker
participation goal. The Community Workforce Coordinator will coordinate with the unions to
determine the number of local residents available to meet the needs of the contractor and
subcontractors based on the manpower utilization plans. Local worker participation will be
monitored and reported on a monthly basis by compiling data from the certified payroll reports
prepared by the contractor and subcontractors. The Community Workforce Coordinator will
actively work with the contractor, subcontractors, and unions to meet the local worker
participation goal.
Core Employees. Utilization of core employees by non-union and local area contractors was a
key focus of negotiations with the Trades Council. The CWA designates the trade unions as the
exclusive source of craft labor on the WRRF Project and union referral systems must be used
exclusively by the general contractor and subcontractors of all tiers to obtain craft labor. The
draft CWA initially proposed by the Trades Council did not include provisions allowing non-
union contractors to employ their key personnel, or “core employees”, on the WRRF Project
without utilizing the union referral system. The proposed CWA provides for specific exclusions
that are narrowly focused on maintaining core workers for construction management, inspection,
and materials testing. Procurement of a construction manager was underway and authorized by
Council prior to direction received on July 10, 2018, and the selected construction management
team includes a local subconsultant, thus also furthering the goal of advancing the local hiring
objective. This issue is discussed extensively in the next sections of this report.
Local Area Contractors
As detailed in the July 10, 2018 Council Agenda Report, the negotiating team recognized the
absence of core worker provisions could disproportionately impact specialty subcontractors with
a small workforce, who generally rely more heavily on their core employees to effectively
perform their subcontracted scope of work, as compared to larger contractors. Specialty
subcontractors (e.g., roofers, glaziers, tile installers, sheet metal workers, landscapers, etc.) have
a smaller role relative to the overall scope of the WRRF Project, provide fewer employees and
less craft hours, and are more likely to be local contractors. Staff received input from local area
contractors and non-union contractor representatives that the inability of a local, non-union
contractor to utilize its core workforce could present a barrier to local contractor, and therefore
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local employee, participation on the WRRF Project.
To address this concern and minimize barriers to local contractor participation, the negotiating
team proposed terms allowing local area contractors – companies whose principal place of
business has been located within the City or County of San Luis Obispo for at least one year –
the ability to directly employ three of their core workers before being required to use the union
referral system. After employing three initial core workers, local area contractors can continue
employing core workers on a one-to-one ratio with union referrals until a maximum of seven
core workers have been employed. After seven core workers have been employed, any additional
employees must be obtained through the standard union referral system. Staff believes this
provision will increase the ability of local, non-union contractors to participate in the WRRF
Project by utilizing their core workforce and will increase employment opportunities for local
residents.
Non-Union Contractors
In addition to local area contractors, the absence of core worker provisions impacts the ability of
non-union contractors to participate in the WRRF Project. Non-union contractors generally rely
on their core workforce in key oversight positions, typically as forepersons, just as union
contractors rely on their key personnel to effectively deliver complex construction projects. The
inability of non-union contractors to utilize their key workforce could present significant risk
associated with labor uncertainty, and staff received input that such barriers could deter non-
union contractors from participating on the WRRF Project, which could minimize competition in
the bidding pool and adversely impact project costs.
Staff also negotiated a provision allowing non-union contractors the ability to employ up to five
core workers on the WRRF Project. Core workers can be employed on a one-to-one ratio with
union referrals, with the first employee being a core worker, the second employee a union
referral, and the third employee a core worker. This alternating process continues until a
maximum of five core employees is reached. Staff received input that such provisions increase
the likelihood of non-union contractors participating in the WRRF Project by being able to
utilize at least a portion of their familiar core workforce, regardless of the location of their
principal place of business.
Construction Inspection. Quality assurance of the WRRF Project improvements is an essential
function performed by the City’s construction manager and its inspection staff to ensure the
facility is constructed in accordance with the contract documents. Construction inspectors, field
soils testers, and other personnel performing quality assurance and quality control functions are
covered crafts under a CWA, subject to the core worker limitations and union referral procedures
set forth in the agreement. The draft CWA initially proposed by the Trades Council included
broadly written language including construction inspectors, field soils testers, materials testers,
and anyone performing quality control or quality assurance work as covered crafts under the
CWA.
Exemption of the construction manager, its inspection staff, and its field soils and materials
testing subconsultant was one of the key negotiating objectives identified by the City Council, as
procurement of a construction manager for the WRRF Project was underway when City Council
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directed staff to initiate CWA negotiations. The City’s request for proposals for construction
management services did not reference the potential inclusion of a CWA in the professional
services agreement, and the addition of a CWA during the procurement process would have
delayed the selection process and significantly impacted the WRRF Project schedule.
In addition, the firm ultimately selected by the City to provide construction management services
for the WRRF Project included a local, non-union subconsultant to provide specialty inspection
and materials testing services who was unwilling to agree to the terms and conditions of a CWA.
Thus, inclusion of that subconsultant under the agreement risked losing participation of a local
firm and its local employees and compromising the efficient delivery and quality of the
professional services to the project. After significant and lengthy negotiation, the parties reached
tentative agreement on the recommended provisions that exempt the services under contract with
the City’s previously retained construction manager as part of a packaged proposal that includes
a concession of an equivalent benefits provision initially proposed by the City’s negotiating team
and detailed in a subsequent section of this report.
Apprentices. The draft CWA initially proposed by the Trades Council included provisions
designating union-sponsored apprenticeship programs as the sole source of apprentices on the
WRRF Project. Local, non-union contractor representatives expressed concern with this typical
CWA provision in a discussion with the City Attorney and Utilities staff prior to the start of
negotiations with the Trades Council. In its initial counter-proposal, the City’s negotiating team
drafted language allowing apprentices from any state and Federal Department of Labor-approved
apprenticeship programs to participate in the WRRF Project.
The City’s proposed inclusion of non-union affiliated apprenticeship programs was of significant
concern to the Trades Council and its affiliates, as apprentice positions provide valuable training
opportunities for union apprentices and further the unions’ primary goal of increasing
employment opportunities for union members. After exchanging several proposals and counter-
proposals, the City’s negotiating team agreed to accept apprenticeship programs limited to those
sponsored by unions. Staff tentatively accepted the provision both to advance negotiations and as
a practical consideration in recognition of the very few local, non-union apprenticeship programs
capable of referring apprentices of sufficient numbers to meet Labor Code Requirements.
Benefits. CWAs require all contractors, regardless of union affiliation, to pay fringe benefit
contributions directly to union trust funds on behalf of their employees for the duration of the
employees’ time spent working on the covered project. Local, non-union contractor
representatives expressed concern with the administrative burden of changing their standard
business practices to meet this requirement and noted that the payment of fringe benefits to union
trusts could result in additional costs. Additional costs could potentially be incurred as a result of
double payment of fringe benefits while non-union employers transition benefit coverage from
the employer-provided plan to the union-provided plan.
To address this concern, the City’s negotiating team proposed a provision that would allow local,
non-union contractors the ability to demonstrate to the City’s Community Workforce
Coordinator and the unions that it provides its construction craft employees with company-paid
health care and/or retirement benefits of equivalent value to the health care and retirement
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benefits provided by the union trust funds. The Trades Council and its affiliates were opposed to
the inclusion of this provision in the CWA, for a number of practical and administrative
concerns, including long-term record keeping associated with later claims for union benefits. The
City’s negotiating team ultimately agreed to the inclusion of this provision to advance
negotiations on the utilization of core employees by local contractors and the exclusion of
inspection and quality assurance staff from the CWA as detailed in the preceding sections of the
report.
Summary
The final, negotiated CWA represents significant concessions by both the City and the Trades
Council; however, the agreement meets City Council’s primary objectives of maximizing
employment of local workers and opportunities for local contractors without adversely impacting
the quality, schedule, or cost of the WRRF Project. The City Attorney’s office, Utilities staff, and
the WRRF Project Program Management Team will actively work with the WRRF Project
contractors, the Trades Council, and the affiliated unions to successfully implement the
agreement and meet the local worker participation goals.
ENVIRONMENTAL REVIEW
There is no project subject to environmental review associated with the approval of a
Community Workforce Agreement. Nothing related to the approval of a CWA affects otherwise
applicable environmental review of the WRRF project, which is in compliance with all
applicable requirements. The WRRF project itself was analyzed under a separate Environmental
Impact Report which was certified by the City Council on August 16, 2016.
FISCAL IMPACT
The total cost for CWA administration and labor compliance program implementation is
estimated to cost between $325,339 and $498,444. The cost estimate assumes that the
Community Workforce Coordinator, who is responsible for administering the CWA on behalf of
the City, will also serve as the administrator of the WRRF labor compliance program, which is
required to satisfy outside funding requirements. The scope of CWA administration and labor
compliance program implementation overlaps (e.g., certified payroll review, verification of
fringe benefit payments, monitoring of apprentice utilization, etc.), and cost efficiencies can be
realized by combining the two roles.
If the City decides not to move forward with a CWA, a labor compliance program will still be
required at a cost of approximately $145,630 to $224,138. The additional costs of CWA
administration over and above the costs of labor compliance are estimated to range between
$179,709 and $274,306. The costs of standard labor compliance program implementation and
CWA administration are shown in Table 2.
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Table 2. CWA and Labor Compliance Implementation and Administration Cost Estimate
TASK
LABOR COMPLIANCE
PROGRAM
CWA
ADMINISTRATION
ADDITIONAL COST OF
CWA ADMINISTRATION
RESOURCE Low High Low High Low High
Utilities Department $7,347 $8,266 $10,217 $12,743 $2,870 $4,477
City Attorney $526 $1,053 $3,422 $6,054 $2,895 $5,001
Outside Counsel $0 $0 $6,300 $11,100 $6,300 $11,100
Design Engineer $0 $0 $0 $0 $0 $0
Program Management $15,616 $19,520 $53,680 $78,568 $38,064 $59,048
Community Workforce
Coordinator $0 $0 $251,720 $389,980 $251,720 $389,980
Labor Compliance
Coordinator $122,140 $195,300 $0 $0 $(122,140) $(195,300)
SUBTOTAL $145,630 $224,138 $325,339 $498,444 $179,709 $274,306
The costs to date for outside counsel CWA negotiation support are approximately $20,000 and
those services are anticipated to conclude well under the approved contract cap of $40,000. The
City also incurred additional program management costs of approximately $14,000 associated
with the negotiations of the CWA.
ALTERNATIVES
Elect not to enter into the CWA with the Tri Counties Building and Construction Trades Council.
The City Council may choose not to approve execution of the CWA at this time. Council may
select this alternative if it believes that additional negotiations with the Trades Council are
warranted or if a CWA would not benefit the WRRF Project.
Elect to require enhanced local outreach by the WRRF Project bidders in lieu of a CWA. The
City Council may choose to implement an enhanced local outreach program in lieu of a CWA,
whereby bidders on the WRRF Project would be required to perform targeted outreach to local
contractors to increase participation on the WRRF Project by local contractors and local workers.
Attachment C includes enhance outreach contract provisions.
Attachments:
a - SLO WRRF Project Agreement
b - 07-10-2018 Item 13 - WRRF Project Labor Agreement Eval
c - Local Contractor Good Faith Outreach Requirements_20180907
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COMMUNITY WORKFORCE AGREEMENT
BY AND BETWEEN
THE CITY OF SAN LUIS OBISPO
AND
THE TRI COUNTIES BUILDING & CONSTRUCTION
TRADES COUNCIL, AFL-CIO
AND
THE SIGNATORY CRAFT COUNCILS AND UNIONS
FOR
THE WATER RESOURCE RECOVERY FACILITY PROJECT
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City of San Luis Obispo 2 Community Workforce Agreement
TABLE OF CONTENTS Page
ARTICLE 1 INTENT AND PURPOSE 5
ARTICLE 2 SCOPE OF AGREEMENT 6
ARTICLE 3 UNION RECOGNITION AND EMPLOYMENT 10
ARTICLE 4 UNION ACCESS AND STEWARDS 15
ARTICLE 5 WAGES AND BENEFITS 16
ARTICLE 6 WORK STOPPAGES AND LOCKOUTS 17
ARTICLE 7 WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES 21
ARTICLE 8 MANAGEMENT RIGHTS 22
ARTICLE 9 SETTLEMENT OF GRIEVANCES AND DISPUTES 24
ARTICLE 10 REGULATORY COMPLIANCE 26
ARTICLE 11 SAFETY AND PROTECTION OF PERSON AND PROPERTY 27
ARTICLE 12 TRAVEL AND SUBSISTENCE 27
ARTICLE 13 APPRENTICES 27
ARTICLE 14 PRE-JOB CONFERENCES 28
ARTICLE 15 LABOR/MANAGEMENT COOPERATION 29
ARTICLE 16 SAVINGS AND SEPARABILITY 29
ARTICLE 17 WAIVER 30
ARTICLE 18 AMENDMENTS 30
ARTICLE 19 ENTIRE AGREEMENT 30
ARTICLE 20 DURATION OF THE AGREEMENT 31
ATTACHMENT A – LETTER OF ASSENT 34
ATTACHMENT B – LOCAL RESIDENT ZIP CODES 35
ATTACHMENT C – CRAFT EMPLOYEE REQUEST FORM 36
ATTACHMENT D – DRUG AND ALCOHOL TESTING POLICY 38
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City of San Luis Obispo 3 Community Workforce Agreement
CITY OF SAN LUIS OBISPO
WATER RESOURCE RECOVERY FACILITY PROJECT
COMMUNITY WORKFORCE AGREEMENT
This Community Workforce Agreement (hereinafter, “Agreement”) is entered into by
and between the City of San Luis Obispo and its successors or assigns, (“City”), the Tri Counties
Building & Construction Trades Council, AFL-CIO (the “Council”), and the signatory Craft
Councils and Unions signing this Agreement (hereinafter together with the Council, collectively,
the “Unions”). This Agreement establishes the labor relations guidelines and procedures for the
City and for the Contractors and craft employees represented by the Unions and engaged in
Project Work. The City, Council and Unions are hereinafter referred to herein, as the context
may require, as “Party” or “Parties.”
The Parties to this Agreement understand that if this Agreement is acceptable to the City,
the policy of the City will be for the Project Work to be contracted exclusively to Contractors
who agree to execute and be bound by the terms of this Agreement, directly or through the Letter
of Assent (a form of which is attached as “Attachment A”), and to require each of its
subcontractors, of whatever tier, to become bound. The City shall include, directly or by
incorporation by reference, the requirements of this Agreement in the advertisement of and/or
specifications for each and every contract for Project Work to be awarded by the City.
The City shall actively administer and enforce the obligations of this Agreement to
ensure that the benefits envisioned from it flow to all signatory Parties, the Contractors and crafts
persons working under it, and the residents of the City. The City shall therefore designate a
“Community Workforce Coordinator,” either from its own staff or an independent contractor
acting on behalf of the City, who will, with the support of the Contractors and Unions, monitor
compliance with this Agreement; assist, as the authorized representative of the City, in
developing and implementing the programs referenced herein, all of which are critical to
fulfilling the intent and purposes of the Parties and this Agreement; and to otherwise implement
and administer this Agreement.
The term “Apprentice” as used in this Agreement shall mean those employees registered
and participating in Joint Labor/Apprenticeship Programs approved by the Division of
Apprenticeship Standards, Department of Industrial Relations of the State of California, and the
Federal Department of Labor to the extent required by any Project funding source.
The term “Contractor” as used in this Agreement includes any individual, firm,
partnership, or corporation, or combination thereof, including joint ventures, which as an
Independent Contractor has entered into a contract with the City with respect to the Project
Work, or with another Contractor as a subcontractor of whatever tier utilized by such Contractors
for Project Work.
The term “Joint Labor/Apprenticeship Program” or “Approved Apprenticeship
Programs,” as used in this Agreement means a joint Union and Contractor administered
apprenticeship program certified by the Division of Apprenticeship Standards, Department of
Industrial Relations of the State of California, and the Federal Department of Labor to the extent
required by any Project funding source.
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City of San Luis Obispo 4 Community Workforce Agreement
The term “Local Area Resident” as used in this Agreement means a qualified person
whose principal residence is located within the territory covered by the zip codes contained in
Appendix B to this Agreement in priority order.
The term “Local Area Contractor” as used in this Agreement means a construction
contracting entity whose principal place of business is located within the territory of Tier 1 or
Tier 2 contained in Appendix B to this Agreement and has so located and continuously operated
for a period of at least one (1) year prior to the award of Project Work.
The term “Letter of Assent” as used in this Agreement means the document that each
Contractor (of any tier) must sign and submit to the Community Workforce Coordinator and the
Council, before beginning any Project Work, which formally binds them to adhere to all
applicable forms, requirements and conditions of this Agreement, in the form of the letter
attached hereto as Attachment A.
The term “Project” or “Project Work” as used in this Agreement means the City’s
construction, abatement, demolition, renovation, rehabilitation, upgrade and improvement work,
and new construction as described in Section 2.2 of this Agreement and as contracted out by the
City.
The terms “Master Labor Agreements” or “MLAs,” as used in this Agreement, means the
local collective bargaining agreements of the signatory Unions having jurisdiction over the
Project Work and which have signed this Agreement.
The term “Subscription Agreement” means the contract between a Contractor and a
Union’s Labor/Management Trust Fund(s) that allows the Contractor to make the appropriate
fringe benefit contributions in accordance with the terms of MLA.
The Union and all Contractors agree to abide by the terms and conditions of this
Agreement and agree that this Agreement represents the complete understanding of the Parties.
No Contractor is or will be required to sign or otherwise become a party to any other collective
bargaining agreement with a signatory Union as a condition of performing work within the scope
of this Agreement.
The Parties agree that this Agreement will be made available to, and will fully apply to,
any successful bidder for Project Work, without regard to whether that successful bidder
performs work at other sites on either a union or non-union basis. This Agreement shall not
apply to any work of any Contractor other than that on Project Work specifically covered by this
Agreement.
The use of masculine or feminine gender or titles in this Agreement should be construed
as including both genders and not as gender limitations unless the Agreement clearly requires a
different construction. Further, the use of Article titles and/or Section headings are for
information only and carry no legal significance.
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City of San Luis Obispo 5 Community Workforce Agreement
ARTICLE 1
INTENT AND PURPOSE
Section 1.1 Identification and Retention of Skilled Labor and Employment of Local Area
Residents: The construction and capital improvement work scheduled to be performed by the
City will require large numbers of craft personnel and other supporting workers. The parties
understand and intend to use the opportunities provided by the extensive amount of work to be
covered by this Agreement to identify and promote, through cooperative efforts, programs and
procedures (which may include, for example, programs to prepare persons for entrance into
formal apprenticeship programs, or outreach programs to the community describing
opportunities available as a result of the Project), the interest and involvement of Local Area
Residents in the construction industry; assist them in entering the construction trades, and
through utilization of the approved apprenticeship programs, provide training opportunities for
those Local Area Residents and other individuals wishing to pursue a career in construction.
Further, with assistance of the Community Workforce Coordinator, the City, the Contractors, the
Unions and their affiliated regional and national organizations, will work jointly to develop and
implement procedures promptly for the identification of craft needs, the scheduling of work to
facilitate the utilization of available craft workers, and to secure the services of craft workers in
sufficient numbers to meet the high demands of the Project Work to be undertaken.
Section 1.2 Encouragement of Local Area Contractors: The Project will provide many
opportunities for local contractors and suppliers to participate, and the parties therefore agree that
they will cooperate with all efforts of the City, the Community Workforce Coordinator, and other
organizations retained by the City for the purpose of encouraging and assisting the participation
of such businesses in Project Work. The parties shall ensure that the provisions of this
Agreement do not inadvertently establish impediments to the participation of Local Area
Contractors and Local Area Residents.
Section 1.3 Project Cooperation: The parties recognize that the construction to take place
under this Agreement involves unique and special circumstances which dictate the need for the
parties to develop specific procedures to promote high quality, rapid and uninterrupted
construction methods, and practices. The smooth operation and cost effective, successful and
timely completion of the work is vitally important to the City. The parties therefore agree that
maximum cooperation among all parties involved is required; and that with construction work of
this magnitude, with multiple contractors and crafts performing work on multiple sites over an
extended period of time, all parties agree to work in a spirit of harmony and cooperation, and
with an overriding commitment to maintain the continuity and timely completion of Project
Work.
Section 1.4 Workers' Compensation Carve-out: Further, the parties recognize the potential
which the Project may provide for the implementation of a cost-effective workers' compensation
system as permitted by California Labor Code, Section 3201.5, as revised. Should the City
request, the Union parties agree to meet and negotiate in good faith with representatives of the
City for the development, and subsequent implementation, of an effective program involving
improved and revised dispute resolution and medical care procedures for the delivery of
workers’ compensation benefits and medical coverage as permitted by the Code.
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Section 1.5 Peaceful Resolution of All Disputes: In recognition of the special needs of the
Project and to maintain a spirit of harmony, labor-management peace and stability during the
term of this Community Workforce Agreement, the parties agree to establish effective and
binding methods for the settlement of all misunderstandings, disputes and grievances; and in
recognition of such methods and procedures, the unions agree not to engage in any strike,
slowdowns, interruptions, or disruption of Project Work, and the contractors agree not to engage
in any lockout, or any other action impairing or impeding the Project Work.
Section 1.6 Binding Agreement on Parties and Inclusion of Local Area Residents and
Businesses: By executing this Agreement, the City, Council, Unions and Contractors agree to be
bound by each and all of the provisions of this Agreement, and pledge that they will work
together to adopt, develop, and implement processes and procedures which are inclusive of the
residents and businesses of the City.
ARTICLE 2
SCOPE OF AGREEMENT
Section 2.1 General: This Agreement shall only apply to work which is contracted out by the
City, as specified in Section 2.2 of this Article, performed by those Contractor(s) of whatever tier
that have contracts awarded for such work.
Section 2.2 Specific: The Project is defined and limited to:
2.2.1 All construction, abatement, demolition, renovation, rehabilitation, upgrade and
improvement work and new construction to be performed pursuant to or under a contract with
the City for the Water Resource Recovery Facility Project (City Spec. Number 91620) as finally
approved and constructed, and all subcontracts flowing from this contract (“Project
Work”), except that work performed under the contract with the City’s construction manager
shall be excluded from the scope of this Agreement; and
2.2.2 The Parties understand that the City may at any time, and at its sole discretion,
determine to build segments of the Project under this Agreement which were not currently
proposed, or to modify or not to build any one or more particular segments proposed to be
covered. It is understood by the Parties that the City may at any time, and at its sole discretion,
add additional projects under this Agreement not otherwise covered by this Agreement.
Section 2.3 Exclusions: Items specifically excluded from the Scope of this Agreement
include the following:
2.3.1 Work of non-manual employees, including but not limited to: superintendents;
administrators; supervisors; time keepers; mail carriers; clerks; office workers; messengers;
guards; safety personnel; emergency medical and first aid technicians; and other professional,
engineering, administrative, supervisory and management employees;
2.3.2 Equipment and machinery operated by the City;
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2.3.3 All off-site manufacture and handling of materials, equipment, or machinery;
provided, however, that lay down or storage areas for equipment or material and manufacturing
(prefabrication) sites, dedicated solely to the Project or Project Work, and the movement of
materials or goods between locations on a Project site are within the scope of this Agreement;
2.3.4 All employees of the City, Community Workforce Coordinator, design teams
(including, but not limited to, architects engineers and master planners), or any other consultants
for the City (including, but not limited to, project managers and construction managers and their
employees not engaged in Project Work) and their sub-consultants, and other employees of
professional service organizations, not performing manual labor within the scope of this
Agreement.
2.3.5 Any work performed on or near or leading to or into a site of work covered by
this Agreement and undertaken by state, county, city, California Polytechnic University, or other
governmental bodies, or their Contractors or consultants; or by public utilities, or their
Contractors or consultants; and/or by the City or its Contractors or consultants (for work that is
not within the scope of this Agreement);
2.3.6 Off-site maintenance of leased equipment and on-site supervision of such work;
2.3.7 Work required to be performed by the manufacturer’s personnel and/or
personnel certified by the manufacturer, subject to the conditions provided in this section.
Certain equipment and systems of a highly technical and specialized nature may have to be
installed at the Project. The nature of such equipment and systems, together with requirements of
manufacturer’s warranty, may dictate that it be prefabricated, pre-piped, and/or pre-wired. The
Unions agree to install such material, equipment and systems without incident, or allow such
installation to be performed by the manufacturer’s employees or a contractor designated by the
manufacturer where the Unions are unable to perform such work. If a warranty on the
manufacturer’s specialty or technical equipment or systems purchased by the City requires that
the installation and/or programming of such specialty or technical equipment or system be
performed by the manufacturer’s own personnel or a contractor certified by the manufacturer,
and there are no Union signatory contractors certified or authorized by the manufacturer to install
and/or perform such work, then such installation and or programming shall not be covered under
this Agreement. The General Contractor shall notify the Unions at the pre-job conference of the
use of this provision and shall provide copies of the written warranty that require that the work
be performed by the manufacturer’s own personnel or a contractor certified by the manufacturer,
to the affected Union. When the warranty does not require installation or programming by the
manufacturer’s own personnel or a contractor certified by the manufacturer, the Unions agree to
perform and install such work under the supervision and direction of the manufacturer’s
representative;
2.3.8 Non-construction support services contracted by the City, Community Workforce
Coordinator, or Contractor in connection with this Project;
2.3.9 Off-site laboratory work for testing;
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2.3.10 The movement and placement of free-standing furniture owned or controlled by
the Owner; however, the installation of office furniture that is attached to the realty shall be
covered by this Agreement.
2.4 After installation by the Contractor(s) and upon notice of completion, it is understood the
City reserves the right to perform start-up, operation, repair, maintenance or revision of
equipment or systems with persons of the City’s choice. If required, the service representative
may make a final check to protect the terms of a manufacturer’s guarantee or warranty prior to
start-up of a piece of equipment.
Section 2.5 Awarding of Contracts:
2.5.1 The City and/or the Contractors, as appropriate, have the absolute right to award
contracts or subcontracts on this Project to any Contractor notwithstanding the existence or non-
existence of any agreements between such Contractor and any Union parties, provided only that
such Contractor is ready, willing and able to execute and comply with this Community
Workforce Agreement should such Contractor be awarded work covered by this Agreement.
2.5.2 Subject to section 2.6, below, it is agreed that all Contractors and subcontractors
of whatever tier, who have been awarded contracts for work covered by this Agreement, shall be
required to accept and be bound to the terms and conditions of this Community Workforce
Agreement, and shall evidence their acceptance by the execution of the Letter of Assent set forth
in Attachment “A” hereto, prior to the commencement of work. At the time that any Contractor
enters into a subcontract with any subcontractor of any tier providing for the performance on the
construction contract, the Contractor shall provide a copy of this Agreement to said
subcontractor and shall require the subcontractor, as a part of accepting the award of a
construction subcontract, to agree in writing in the form of a Letter of Assent to be bound by
each and every provision of this Agreement prior to the commencement of work on the Project.
No Contractor or subcontractor shall commence Project Work without having first provided a
copy of the Letter of Assent as executed by it to the Community Workforce Coordinator and to
the Council forty-eight (48) hours before the commencement of Project Work, or within forty-
eight (48) hours after the award of Project Work to that Contractor (or subcontractor), whichever
occurs later.
Section 2.6 Coverage Exception: This Agreement shall not apply if the City receives funding
or assistance from any Federal, State, local or other public entity for the Construction Contract if
a requirement, condition or other term of receiving that funding or assistance, at the time of the
awarding of the contract, is that the City not require bidders, contractors, subcontractors or other
persons or entities to enter into an agreement with one or more labor organizations or enter into
an agreement that contains any of the terms set forth herein. The City agrees that it will make
every effort to establish the enforcement of this Agreement with any governmental agency or
granting authority.
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Section 2.7 Master Labor Agreements:
2.7.1 The provisions of this Agreement, including the Master Labor Agreements
(hereinafter “MLAs”), as such may be changed from time-to-time and which are incorporated
herein by reference, shall apply to the work covered by this Agreement. This Agreement is not
intended to supersede the MLAs between any of the Employers performing construction work on
the Project and a Union signatory thereto except to the extent the provisions of this Agreement
are inconsistent with such MLAs, in which event the provisions of this Agreement shall apply.
However, such does not apply to work performed under the National Cooling Tower Agreement,
the National Stack Agreement, the National Transit Division Agreement (NTD), work within the
jurisdiction of the International Union of Elevator Constructors, and all instrument calibration
and loop checking work performed under the terms of the UA/IBEW Joint National Agreement
for Instrument and Control Systems Technicians except that Articles dealing with Work
Stoppages and Lock-Outs, Work Assignments and Jurisdictional Disputes, and Settlement of
Grievances and Disputes shall apply to such work. Where a subject is covered by the provisions
of an MLA and not covered by this Agreement, the provisions of the MLA shall apply. It is
specifically agreed that no later agreement shall be deemed to have precedence over this
Agreement unless signed by all Parties signatory hereto who are then currently employed or
represented at the Project. Any dispute as to the applicable source between this Agreement and
any MLA for determining the wages, hours or working conditions of employees on this Project
shall be resolved under the procedures established in Article 9.
2.7.2 It is understood that this Agreement, together with the referenced MLAs,
constitutes a self-contained, stand-alone agreement and by virtue of having become bound to this
Community Workforce Agreement, the Contractor will not be obligated to sign any other local,
area or national collective bargaining agreement as a condition of performing work within the
scope of this Agreement (provided, however, that the Contractor may be required to sign an
uniformly applied, non-discriminatory “Subscription Agreement” at the request of the trustees or
administrator of a trust fund established pursuant to Section 302 of the Labor Management
Relations Act, and to which such Contractor is bound to make contributions under this
Agreement, provided that such Subscription Agreement does not purport to bind the Contractor
beyond the terms and conditions of this Agreement and/or expand its obligation to make
contributions pursuant thereto). It shall be the responsibility of the prime Contractor to have
each of its subcontractors sign such Subscription Agreement, to the extent required by this
Agreement, with the appropriate Craft Union prior to the subcontractor beginning Project Work.
Section 2.8 Binding Signatories Only: This Agreement shall only be binding on the signatory
Parties hereto, and shall not apply to the parents, affiliates, subsidiaries, or other ventures of any
such Party.
Section 2.9 Other City Work: This Agreement shall be limited to the construction work
within the Scope of this Agreement including, specifically, site preparation and related
demolition work, and new construction and major rehabilitation work referenced in Section 2.2
above. Nothing contained herein shall be interpreted to prohibit, restrict, or interfere with the
performance of any other operation, work or function not covered by this Agreement, which may
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be performed by City employees or contracted for by the City for its own account, on its property
or in and around a Project site.
Section 2.10 Separate Liability: It is understood that the liability of the Contractor(s) and the
liability of the separate Unions under this Agreement shall be several and not joint. The Unions
agree that this Agreement does not have the effect of creating any joint employment status
between or among the City or Community Workforce Coordinator and/or any Contractor.
Section 2.11 Completed Project Work: As areas, phases, portions, sections or segments of
Project Work are accepted by the City, this Agreement shall have no further force or effect on
such items or areas except where the Contractor is directed by the City or its representatives to
engage in repairs, modification, check-out and/or warranties functions required by its contract(s)
with the City.
ARTICLE 3
UNION RECOGNITION AND EMPLOYMENT
Section 3.1 Recognition: The Contractor recognizes the Council and the Unions as the
exclusive bargaining representative for the employees engaged in Project Work.
Section 3.2 Contractor Selection of Employees: The Contractor shall have the right to
determine the competency of all employees, the duties of such employees within their craft
jurisdiction, and shall have the sole responsibility for selecting employees to be laid off. The
Contractor shall also have the right to reject any applicant referred by a Union for any reason,
subject to any reporting pay required under the appropriate MLA; provided, however, that such
right is exercised in good faith and not for the purpose of avoiding the Contractor’s commitment
to employ qualified workers through the procedures endorsed in this Agreement.
Section 3.3 Referral Procedures:
3.3.1 For signatory Unions now having a job referral system contained in a MLA, the
Contractor agrees to comply with such system and it shall be used exclusively by such
Contractor, except as modified by this Agreement. Such job referral system will be operated in a
nondiscriminatory manner and in full compliance with federal, state, and local laws and
regulations which require equal employment opportunities and non-discrimination. All of the
foregoing hiring procedures, including related practices affecting apprenticeship, shall be
operated so as to consider the goals of the City to encourage employment of Local Area
Residents and participation of Local Area Contractors on the Project, and to facilitate the ability
of all Contractors to meet their employment needs.
3.3.2 The Unions will exert their best efforts to recruit and refer sufficient numbers of
skilled craft workers to fulfill the labor requirements of the Contractor, including specific
employment obligations to which the Contractor may be legally and/or contractually obligated;
and to refer apprentices as requested to develop a larger, skilled workforce. The Unions will
work with their affiliated regional and national unions, and jointly with the Community
Workforce Coordinator and others designated by the City, to identify and refer competent craft
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persons as needed for Project Work, and to identify and hire individuals, giving preference to
Local Area Residents, for entrance into approved apprenticeship programs, or participation in
other identified programs and procedures to assist individuals in qualifying and becoming
eligible for such apprenticeship programs, all maintained to increase the available supply of
skilled craft personnel.
3.3.3 The Union shall not knowingly refer an employee currently employed by a
Contractor on Project Work to any other Contractor.
3.3.4 Core Workers: As the initial workers on the Project, a Local Area Contractor,
which is not currently working under a Master Labor Agreement, that is awarded work on the
Project may directly employ up to a maximum of three (3) members of its regular, local,
experienced work force, where the employees so designated as “Core Workers” meet the
following qualifications:
(a) Possess any license required by state or Federal law for the Project work to be
performed;
(b) Have worked at least two thousand (2,000) hours in the applicable trade or
craft;
(c) Have been employed by the Contractor for at least sixty (60) working days of
the one hundred (100) working days immediately preceding the award of the
Project Work to the Contractor;
(d) Are Local Area Residents;
(e) Have the ability to safely perform the basic functions of the applicable craft or
trade.
After directly employing up to three (3) Core Workers, the Local Area Contractor shall thereafter
be subject to the procedures for Union referral of Project workers below. The Local Area
Contractor, upon request by the Community Workforce Coordinator, shall provide the necessary
documentation to support the qualification of an employee as a Core Worker.
If additional workers are needed following the hiring of workers pursuant to the provisions
above, then the Local Area Contractor shall request and the Union shall refer a worker from its
referral list. Local Area Contractors may then directly employ one (1) additional of their
qualified “Core Workers” that is referred pursuant to the referral procedures referenced in this
section 3, after which one (1) worker shall be referred from the Union referral list. This
alternating procedure of referral shall continue until a maximum of seven (7) qualified “Core
Workers” have been directly employed by or referred to the Contractor. All additional workers
shall be requested and referred pursuant to otherwise applicable Union referral list procedures
and the local hire provisions of this Agreement. On layoffs, the Contractor shall reverse the
alternating process. The Contractor shall notify the appropriate Union utilizing the Craft Request
Form (Attachment “C”) and each of the additional workers utilized under the procedures in this
paragraph shall register with the Union’s hiring hall before commencing work on the Project. If
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there is any question regarding a worker’s eligibility under this section 3.3.4, the Contractor shall
provide satisfactory proof of such at a Union’s request. The provisions of this section 3.3.4 shall
only apply to Local Area Contractors and workers who are not working under the terms of a
Master Labor Agreement at the time of their transfer to work covered under this Agreement.
All other Contractors not currently signatory to a Master Labor Agreement that is awarded work
on the Project may directly employ one Core Worker (as defined below) that is referred pursuant
to the referral procedures referenced in this Section 3 after which one (1) worker shall be referred
from the Union referral list. This alternating procedure of referral shall continue until a
maximum of five (5) qualified “Core Workers” have been directly employed by or referred to the
Contractor. All additional workers shall be requested and referred pursuant to otherwise
applicable Union referral list procedures and the local hire provisions of this Agreement. On
layoffs, the Contractor shall reverse the alternating process. The Contractor shall notify the
appropriate Union utilizing the Craft Request Form (Attachment “C”) and each of the
additional workers utilized under the procedures in this paragraph shall register with the Union’s
hiring hall before commencing work on the Project. If there is any question regarding a worker’s
eligibility under this section 3.3.4, the Contractor shall provide satisfactory proof of such at a
Union’s request. “Core Workers” are those employees who meet the following qualifications:
(a) Possesses any license required by state or Federal law for the Project work to be
performed;
(b) Have worked at least two thousand (2,000) hours in the applicable trade or craft;
(c) Have been employed by the Contractor for at least sixty (60) working days of the one
hundred (100) working days immediately preceding the award of the Project Work to
the Contractor; and
(d) Have the ability to safely perform the basic functions of the applicable craft or trade.
The Core Workers shall present to and be dispatched through the applicable Union referral
procedures.
3.3.4.1 Prior to each Contractor performing any work on the Project, each
Contractor shall provide a list of its “Core Workers” to the Community Workforce Coordinator
and the Council. Failure to do so will prohibit the Contractor from using any “Core Workers”.
Upon request by any Party to this Agreement, the Contractor hiring any “Core Worker” shall
provide satisfactory proof (e.g., payroll records, quarterly tax records, driver’s license, voter
registration, postal address and such other documentation) evidencing the “Core Worker’s”
qualification as a core employee to the Community Workforce Coordinator and the Council.
Section 3.4 Non-Discrimination in Referral, Employment, and Contracting: The Unions and
Contractors agree that they will not discriminate against any employee or applicant for
employment in hiring and dispatching on the basis of race, color, religion, sex, gender, national
origin, age, membership in a labor organization, sexual orientation, political affiliation, marital
status, or disability. The Parties shall jointly endeavor to assure that these commitments are fully
met, and that any provisions of this Agreement which may appear to interfere within a local and
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small business enterprises successfully bidding for work within the scope of this Agreement shall
be carefully reviewed, and adjustments made as may be appropriate and agreed upon among the
Parties, to ensure full compliance with the spirit and letter of the City’s policies and commitment
to its goals for the significant utilization of local and small businesses as direct Contractors or
suppliers for Project Work.
Section 3.5 Employment of Local Area Residents:
3.5.1 The Unions and Contractors agree that, to the maximum extent allowed by law,
and as long as they possess the requisite skills and qualifications, the Unions will exert their best
efforts to recruit sufficient numbers of skilled craft Local Area Residents as defined herein, to
fulfill the requirements of the Contractors and shall refer on a priority basis all available,
qualified Local Area Resident workers. In recognition of the fact that the City and the
communities surrounding Project Work will be impacted by the construction of the Project, the
parties agree to support the hiring of Local Area Resident workers, as well as Veterans. Towards
that end, the Unions agree that they will exert their best efforts to encourage and provide
referrals and utilization of qualified workers in accordance with the following priority:
3.5.1.1 First, Local Area Residents residing in those first-tier zip codes which
cover the City of San Luis Obispo (Tier 1), as reflected on the attached list of zip codes as
reflected on Attachment “B”;
3.5.1.2 If the Unions cannot provide the Contractors with a sufficient number of
qualified workers from paragraph 3.5.1.1, above, the Unions will exert their best efforts to then
recruit qualified workers residing within the County of San Luis Obispo (Tier 2), and shall refer
all such available workers, giving first priority to Veterans residing in county.
3.5.1.3 If the Unions still have not provided the Contractors with a sufficient
number of qualified workers from paragraphs 3.5.1.1 and 3.5.1.2, above, the Unions will then
exert their best efforts to recruit qualified workers residing in the zip codes specified within
Santa Barbara and Monterey counties (Tier 3), and shall refer all such available workers, giving
first priority to Veterans residing in those zip codes.
3.5.1.4 If the Unions still have not provided the Contractors with a sufficient
number of qualified workers from paragraphs 3.6.1.1, 3.6.1.2, and 3.6.1.3 above, the Unions will
then exert their best efforts to recruit qualified workers residing in the zip codes specified within
Ventura County (Tier 4), and shall refer all such available workers, giving first priority to
Veterans residing in those zip codes.
3.5.2 A goal of at least 30% of all of the construction labor hours worked on the
Project shall be from Local Area Residents, with first priority referrals on all Contractor requests
given to available Local Area Residents, in ascending order of tier, regardless of attainment of
goals. To facilitate the dispatch of Local Area Residents, all Contractors will be required to
utilize the Craft Employee Request Form whenever they are requesting the referral of any
employee from a Union referral list for any Project Work, a sample of which is attached as
Attachment “C”.
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3.5.3 The Community Workforce Coordinator shall work with the Unions and
Contractors in the administration of this Local Area Resident preference; and the Contractors and
Unions shall cooperate by maintaining adequate records to demonstrate to the Community
Workforce Coordinator that such preferences have been pursued.
Section 3.6 Helmets to Hardhats: The Contractors and the Unions recognize a desire to
facilitate the entry into the building and construction trades of veterans who are interested in
careers in the building and construction industry. The Contractors and Unions agree to utilize the
services of the Center for Military Recruitment, Assessment and Veterans Employment
(hereinafter “Center”) and the Center’s “Helmets to Hardhats” program to serve as a resource for
preliminary orientation, assessment of construction aptitude, referral to apprenticeship programs
or hiring halls, counseling and mentoring, support network, employment opportunities and other
needs as identified by the Parties. For purposes of this Agreement, the term “Eligible Veteran”
shall have the same meaning as the term “veteran” as defined under Title 5, Section 2108(1) of the
United States Code as the same may be amended or re-codified from time to time. It shall be the
responsibility of each qualified Local Area Resident to provide the Unions with proof of his/her
status as an Eligible Veteran.
The Unions and Contractors agree to coordinate with the Center to create and maintain an
integrated database of veterans interested in working on this Project and of apprenticeship and
employment opportunities for this Project. To the extent permitted by law, the Unions will give
credit to such veterans for bona fide, provable past experience.
Section 3.7 Time for Referral: If any Union’s registration and referral system does not fulfill
the requirements for specific classifications requested by any Contractor within forty-eight (48)
hours (excluding Saturdays, Sundays, and holidays), that Contractor may use employment
sources other than the Union registration and referral services and may employ applicants
meeting such standards from any other available source. The Contractors shall inform the Union
of any applicants hired from other sources within forty-eight (48) hours of such applicant being
hired, and such applicants shall register with the appropriate hiring hall, if any, prior to
commencing work on the Project.
Section 3.8 Lack of Referral Procedure: If a signatory Union does not have a job referral
system as set forth in Section 3.3 above, the Contractors shall give the Union equal opportunity
to refer applicants. The Contractors shall notify the Union of employees so hired, as set forth in
Section 3.5.
Section 3.9 Union Membership: No employee covered by this Agreement shall be required
to join any Union as a condition of being employed, or remaining employed, for the completion
of Project Work; provided, however, that any employee who is a member of the referring Union
at the time of referral shall maintain that membership in good standing while employed under
this Agreement. All employees shall, however, he required to comply with the union security
provisions of the applicable MLA, for the period during which they are performing on-site
Project Work to the extent, as permitted by law, of rendering payment of an amount equal to the
applicable monthly window and working dues uniformly required as, at a minimum,
representation fees to the Union.
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Section 3.10 Individual Seniority: Except as provided in Section 4.3, individual seniority shall
not be recognized or applied to employees working on the Project; provided, however, that group
and/or classification seniority in a Union’s MLA, as of the effective date of this Agreement shall
he recognized for purposes of layoffs.
Section 3.11 Foremen: The selection and number of craft foreman and/or general foreman
shall be the responsibility of the Contractor. All foremen shall take orders exclusively from the
designated Contractor representatives. Craft foreman shall be designated as working foreman at
the request of the Contractors.
ARTICLE 4
UNION ACCESS AND STEWARDS
Section 4.1 Access to Project Sites: Authorized representatives of the Union shall have
access to Project Work, provided that they do not interfere with the work of employees and
further provided that such representatives fully comply with posted visitor, security, and safety
rules.
Section 4.2 Stewards:
4.2.1 Each signatory Union shall have the right to dispatch a working journeyperson as
a steward for each shift and shall notify the Contractor in writing of the identity of the designated
steward or stewards prior to the assumption of such person’s duties as steward. Such designated
steward or stewards shall not exercise any supervisory functions. There will be no non-working
stewards. Stewards will receive the regular rate of pay for their respective crafts.
4.2.2 In addition to his/her work as an employee, the steward should have the right to
receive, but not to solicit, complaints or grievances and to discuss and assist in the adjustment of
the same with the employee’s appropriate supervisor. Each steward should be concerned only
with the employees of the steward’s Contractor and, if applicable, subcontractor(s), and not with
the employees of any other Contractor. A Contractor will not discriminate against the steward on
the basis of proper performance of his/her Union duties.
4.2.3 When a Contractor has multiple, non-contiguous work locations at one site, the
Contractor may request, and the Union shall appoint such additional working stewards as the
Contractor requests to provide independent coverage of one or more such locations. In such
cases, a steward may not service more than one work location without the approval of the
Contractor.
4.2.4 The stewards shall not have the right to determine when overtime shall be worked
or who shall work overtime.
Section 4.3 Steward Layoff/Discharge: The relevant Contractor agrees to notify the
appropriate Union twenty-four (24) hours before the layoff of a steward, except in the case of
disciplinary discharge for just cause. If the steward is protected against such layoff by the
provisions of the applicable MLA, such provisions shall be recognized when the steward
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possesses the necessary qualifications to perform the remaining work. In any case in which the
steward is discharged or disciplined for just cause, the appropriate Union will be notified
immediately by the Contractor, and such discharge or discipline shall not become final (subject
to any later filed grievance) until twenty-four (24) hours after such notice has been given.
Section 4.4 Employees on Non-Project Work: On work where the personnel of the City may
be working in close proximity to the construction activities covered by this Agreement, the
Union agrees that the Union representatives, stewards, and individual workers will not interfere
with the City personnel, or with personnel employed by the any other employer not a Party to
this Agreement.
ARTICLE 5
WAGES AND BENEFITS
Section 5.1 Wages: All employees covered by this Agreement shall be classified in
accordance with work performed and paid by the Contractors the hourly wage rates for those
classifications in compliance with the applicable prevailing wage rate determination established
pursuant to applicable law. If a prevailing rate increases under law, the Contractor shall pay that
rate as of its effective date under the law. Notwithstanding any other provision of this
Agreement, this Agreement does not relieve Contractors directly signatory to one or more of the
Master Labor Agreements from paying all wages set forth in such Agreements.
Section 5.2 Benefits:
5.2.1 Contractors shall pay contributions to the established employee benefit funds in
the amounts designated in the appropriate MLA, and make all employee authorized deductions in
the amounts designated in the appropriate MLA; provided, however, that such contributions shall
not exceed the contribution amounts set forth in the applicable prevailing wage determination.
Notwithstanding any other provision of this Agreement, Contractors directly signatory to one or
more of the Master Labor Agreements are required to make all contributions set forth in those
Master Labor Agreements without reference to the forgoing. Bona fide benefit plans with joint
trustees or authorized employee deduction programs established or negotiated under the
applicable MLA, or by the Parties to this Agreement during the life of this Agreement may be
added.
5.2.2 The Contractor adopts and agrees to be bound by the written terms of the
applicable, legally established, trust agreement(s) specifying the detailed basis on which
payments are to be made into, and benefits paid out of, such trust funds for its employees. The
Contractor authorizes the Parties to such trust funds to appoint trustees and successor trustees to
administer the trust funds and hereby ratifies and accepts the trustees so appointed as if made by
the Contractor.
5.2.3 Each Contractor and subcontractor is required to certify to the Community
Workforce Coordinator that it has paid all benefit contributions due and owing to the appropriate
Trust(s) prior to the receipt of its final payment and/or retention. Further, upon timely
notification by a Union to the Community Workforce Coordinator, the Community Workforce
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Coordinator shall work with any prime Contractor or subcontractor who is delinquent in
payments to assure that proper benefit contributions are made, to the extent of requesting the
City or the prime Contractor to withhold payments otherwise due such Contractor, until such
contributions have been made or otherwise guaranteed.
Section 5.3 Wage Premiums: Wage premiums, including but not limited to pay based on
height of work, hazard pay, scaffold pay, and special skills shall not be applicable to work under
this Agreement, except to the extent provided for in any applicable prevailing wage
determination.
Section 5.4 Compliance with Prevailing Wage Laws: The Parties agree that the Community
Workforce Coordinator shall monitor the compliance by all Contractors and subcontractors with
all applicable federal and state prevailing wage laws and regulations, and that such monitoring
shall include Contractors engaged in what would otherwise be Project Work but for the
exceptions to Agreement coverage in Section 2.2. All complaints regarding possible prevailing
wage violations shall be referred to the Community Workforce Coordinator for processing,
investigation, and resolution, and if not resolved within thirty (30) calendar days, may be
referred by any party to the state labor commissioner.
ARTICLE 6
WORK STOPPAGES AND LOCK-OUTS
Section 6.1 No Work Stoppages or Disruptive Activity: The Council and the Unions agree
that neither they, and each of them, nor their respective officers or agents or representatives, shall
incite or encourage, condone or participate in any strike, walk-out, slow-down, picketing,
observing picket lines or other activity of any nature or kind whatsoever, for any cause or dispute
whatsoever with respect to or in any way related to Project Work, or which interferes with or
otherwise disrupts Project Work, or with respect to or related to the City or Contractors or
subcontractors, including, but not limited to economic strikes, unfair labor practice strikes, safety
strikes, sympathy strikes and jurisdictional strikes whether or not the underlying dispute is
subject to arbitration. Any such actions by the Council, or Unions, or their members, agents,
representatives or the employees they represent shall constitute a violation of this Agreement.
The Council and the Union shall take all steps necessary to obtain compliance with this Article
and neither should be held liable for conduct for which it is not responsible.
Section 6.2 Employee Violations: The Contractor may discharge any employee violating
Section 6.1 above and any such employee will not be eligible for rehire under this Agreement.
Section 6.3 Standing to Enforce: The City, the Community Workforce Coordinator, or any
Contractor affected by an alleged violation of Section 6.1 shall have standing and the right to
enforce the obligations established therein.
Section 6.4 Expiration of MLAs: If the MLA, or any local, regional, and other applicable
collective bargaining agreements expire during the term of the Project, the Union(s) agree that
there shall be no work disruption of any kind as described in Section 6.1 above as a result of the
expiration of any such agreement(s) having application on this Project and/or failure of the
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involved Parties to that agreement to reach a new contract. Terms and conditions of employment
established and set at the time of bid shall remain established and set. Otherwise to the extent
that such agreement does expire and the Parties to that agreement have failed to reach
concurrence on a new contract, work will continue on the Project on one of the following two (2)
options, both of which will be offered by the Unions involved to the Contractors affected:
6.4.1 Each of the Unions with a contract expiring must offer to continue working on the
Project under interim agreements that retain all the terms of the expiring contract, except that the
Unions involved in such expiring contract may each propose wage rates and employer
contribution rates to employee benefit funds under the prior contract different from what those
wage rates and employer contributions rates were under the expiring contracts. The terms of the
Union’s interim agreement offered to Contractors will be no less favorable than the terms offered
by the Union to any other employer or group of employers covering the same type of
construction work in San Luis Obispo County.
6.4.2 Each of the Unions with a contract expiring must offer to continue working on the
Project under all the terms of the expiring contract, including the wage rates and employer
contribution rates to the employee benefit funds, if the Contractor affected by that expiring
contract agrees to the following retroactive provisions: if a new MLA, local, regional or other
applicable labor agreement for the industry having application at the Project is ratified and
signed during the term of this Agreement and if such new labor agreement provides for
retroactive wage increases, then each affected Contractor shall pay to its employees who
performed work covered by this Agreement at the Project during the hiatus between the effective
dates of such expired and new labor agreements, an amount equal to any such retroactive wage
increase established by such new labor agreement, retroactive to whatever date is provided by
the new labor agreement for such increase to go into effect, for each employee’s hours worked
on the Project during the retroactive period. All Parties agree that such affected Contractors shall
be solely responsible for any retroactive payment to its employees.
6.4.3 Some Contractors may elect to continue to work on the Project under the terms of
the interim agreement option offered under paragraph 6.4.1, above and other Contractors may
elect to continue to work on the Project under the retroactivity option offered under paragraph
6.4.2, above. To decide between the two options, Contractors will be given one week after the
particular labor agreement has expired or one week after the Union has personally delivered to
the Contractors in writing its specific offer of terms of the interim agreement pursuant to
paragraph (a) above, whichever is the later date. If the Contractor fails to timely select one of the
two options, the Contractor shall be deemed to have selected the retroactivity option offered
under paragraph 6.4.2, above.
Section 6.5 No Lockouts: Contractors shall not cause, incite, encourage, condone or
participate in any lock-out of employees with respect to Project Work during the term of this
Agreement. The term “lock-out” refers only to a Contractor’s exclusion of employees in order to
secure collective bargaining advantage, and does not refer to the discharge, termination or layoff
of employees by the Contractor for any reason in the exercise of rights pursuant to any provision
of this Agreement, or any other agreement, nor does “lock-out” include the City’s decision to
stop, suspend or discontinue any Project Work or any portion thereof for any reason.
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Section 6.6 Best Efforts to End Violations:
6.6.1 If a Contractor contends that there is any violation of this Article or Section 7.3, it
shall notify, in writing, the Executive Secretary of the Council, the Senior Executive of the
involved Union(s) and the Community Workforce Coordinator. The Executive Secretary and the
leadership of the involved Union(s) will immediately instruct, order and use their best efforts to
cause the cessation of any violation of the relevant Article.
6.6.2 If the Union contends that any Contractor has violated this Article, it will notify
the Contractor and the Community Workforce Coordinator, setting forth the facts which the
Union contends violate the Agreement, at least twenty-four (24) hours prior to invoking the
procedures of Section 6.8. The Community Workforce Coordinator shall promptly order the
involved Contractor(s) to cease any violation of the Article.
Section 6.7 Withholding of services for failure to pay wages and fringe benefits:
Notwithstanding any provision of this Agreement to the contrary, it shall not be a violation of
this Agreement for any Union to withhold the services of its members (but not the right to
picket) from a particular Contractor who fails to timely pay its weekly payroll; or fails to make
timely payments to the Union’s Joint Labor/Management Trust Funds in accordance with the
provisions of the applicable Master Labor Agreements. Prior to withholding its members’
services for the Contractor’s failure to make timely payments to the Union’s Joint
Labor/Management Trust Funds, the Union shall give at least ten (10) days (unless a lesser
period of time is provided in the Union’s MLA, but in no event less than seventy-two (72) hours)
written notice of such failure to pay by registered or certified mail, return receipt requested, and
by facsimile transmission to the involved Contractor and the City. Union will meet within the
ten (10) day period to attempt to resolve the dispute.
6.7.1 Upon the payment of the delinquent Contractor of all monies due and then owing
for wages and/or fringe benefit contributions, the Union shall direct its members to return to
work and the Contractor shall return all such members back to work.
Section 6.8 Expedited Enforcement Procedure: Any party, including the City, which is an
intended beneficiary of this Article, or the Community Workforce Coordinator, may institute the
following procedures, in lieu of or in addition to any other action at law or equity, when a breach
of Section 6.1, 6.5 or Section 7.3 is alleged.
6.8.1 The party invoking this procedure shall notify Lou Zigman, or, if Mr. Zigman is
unavailable, Sara Adler, who have been selected by the negotiating Parties, and whom the Parties
agree shall be the permanent arbitrator and alternate arbitrator under this procedure. If the
permanent arbitrator is unavailable at any time, the party invoking this procedure shall notify
Sara Adler. Notice to the arbitrator shall be by the most expeditious means available, with
notices to the Parties alleged to be in violation, and to the Council if it is a Union alleged to be in
violation. For purposes of this Article, written notice may be given by telegram, facsimile, hand-
delivery or overnight mail and will be deemed effective upon receipt.
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6.8.2 Upon receipt of said notice, the arbitrator named above, or his/her alternate shall
sit and hold a hearing within twenty-four (24) hours if it is contended that the violation still
exists, but not sooner than twenty-four (24) hours after notice has been dispatched to the Council
of the involved Union(s) and/or Contractor.
6.8.3 The arbitrator shall notify the Parties of the place and time chosen for this
hearing. Said hearing shall be completed in one session, which, with appropriate recesses at the
arbitrator's discretion, shall not exceed twenty-four (24) hours unless otherwise agreed upon by
all Parties. A failure of any Party or Parties to attend said hearings shall not delay the hearing of
evidence or the issuance of any award by the arbitrator.
6.8.4 The sole issue at the hearing shall be whether or not a violation of Sections 6.1,
6.5 or Section 7.3 has in fact occurred. The arbitrator shall have no authority to consider any
matter in justification, explanation or mitigation of such violation or to award damages. The
Award shall be issued in writing within three (3) hours after the close of the hearing and may be
issued without an opinion. If any party desires a written opinion, one shall be issued within
fifteen (15) days, but its issuance shall not delay compliance with, or enforcement of, the Award.
The arbitrator may order cessation of the violation of the Article and other appropriate relief, and
such Award, upon issuance, shall be served on all Parties by hand or registered mail.
6.8.5 Such Award shall be final and binding on all Parties and may be enforced by any
court of competent jurisdiction upon the filing of this Agreement and all other relevant
documents referred to herein above in the following manner. Written notice of the filing of such
enforcement proceedings shall be given to the other party. In any judicial proceeding to obtain a
temporary order enforcing the arbitrator's Award as issued under this Article, all Parties waive
the right to a hearing and agree that such proceedings may be ex parte. Such agreement does not
waive any Party's right to participate in a hearing for a final order of enforcement. The court's
order or orders enforcing the arbitrator's award shall be served on all Parties by hand or by
delivery to their address as shown on this Agreement (for a Union), as shown in their business
contract for work under this Agreement (for a Contractor) and to the representing Union (for an
employee), by certified mail by the Party or Parties first alleging the violation.
6.8.6 Any rights created by statute or law governing arbitration proceedings
inconsistent with the above procedure or which interfere with compliance hereto are hereby
waived by the Parties to whom they accrue.
6.8.7 The fees and expenses of the arbitrator shall be equally divided between the party
or Parties initiating this procedure and the respondent Party or Parties.
6.8.8 Liquidated Damages. If the arbitrator determines that a work stoppage, in
violation of Section 6.1 has occurred, the respondent Unions(s) shall, within eight (8) hours of
receipt of the award, direct all the employees they represent on the project to immediately return
to work. If the craft(s) involved does not return to work by the beginning of the next regularly
scheduled shift following such eight (8) hour period after receipt of the arbitrator’s award, and the
respondent Union(s) have not complied with their obligation to immediately instruct, order, and
use their best efforts to cause a cessation of the violation and return of the employees they represent
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to work, then the respondent Union(s) shall each pay a sum as liquidated damages to the City, and
each shall pay an additional sum per shift for each shift thereafter on which the craft(s) has not
returned to work. Similarly, if the arbitrator determines that a lock-out, in violation of Section 6.5
has occurred, the respondent Contractor(s) shall, within eight (8) hours of receipt of the award,
return all the affected employees to work on the Project, or otherwise correct the violation as found
by the arbitrator. If the respondent Contractor(s) do not take such action by the beginning of the
next regularly scheduled shift following the eight (8) hour period, each respondent Contractor shall
pay a sum as liquidated damages in equal amounts to the City and to the affected Union(s) (with
union amounts to be apportioned among the affected employees and the benefit funds to which
contributions are made on their behalf, as appropriate and designated by the Arbitrator) and each
shall pay an additional sum per shift for each shift thereafter in which compliance by the
respondent Contractor(s) has not been completed. The Arbitrator shall retain jurisdiction to
determine compliance with this Section and to establish the appropriate sum of liquidated
damages, which shall not be less than five thousand dollars ($5,000) per shift, nor more than twenty
thousand dollars ($20,000) per shift.
ARTICLE 7
WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES
Section 7.1 Assignment of Work: The assignment of Project Work will be solely the
responsibility of the Employer performing the work involved; and such work assignments will be
in accordance with the Plan for the Settlement of Jurisdictional Disputes in the Construction
Industry (the “Plan”) or any successor Plan.
Section 7.2 The Plan: All jurisdictional disputes on this Project between or among the
building and construction trades Unions and the Employers parties to this Agreement, shall be
settled and adjusted according to the present Plan established by the Building and Construction
Trades Department or any other plan or method of procedure that may be adopted in the future
by the Building and Construction Trades Department. Decisions rendered shall be final, binding
and conclusive on the Employers and Unions parties to this Agreement.
7.2.1 If a dispute arising under this Article involves the Southwest Regional Council of
Carpenters or any of its subordinate bodies, an Arbitrator shall be chosen by the procedures
specified in Article V, Section 5, of the Plan from a list composed of John Kagel, Thomas
Angelo, Robert Hirsch, and Thomas Pagan, and the Arbitrator’s hearing on the dispute shall be
held at the offices of the applicable Building and Construction Trades Council within fourteen
(14) days of the selection of the Arbitrator. All other procedures shall be as specified in the Plan.
Section 7.3 No Work Disruption Over Jurisdiction: All jurisdictional disputes shall be
resolved without the occurrence of any strike, work stoppage, or slow-down of any nature, and
the Employer’s assignment shall be adhered to until the dispute is resolved. Individuals violating
this section shall be subject to immediate discharge.
Section 7.4 Pre-Job Conferences: As provided in Article 14, each Employer will conduct a
pre-job conference with the Council prior to commencing work. The Primary Employer and the
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Owner will be advised in advance of all such conferences and may participate if they wish. Pre-
job conferences for different Employers may be held together.
Section 7.5 Resolution of Jurisdictional Disputes: If any actual or threatened strike, sympathy
strike, work stoppage, slow down, picketing, hand-billing or otherwise advising the public that a
labor dispute exists, or interference with the progress of Project Work by reason of a
jurisdictional dispute or disputes occurs, the Parties shall exhaust the expedited procedures set
forth in the Plan, if such procedures are in the plan then currently in effect, or otherwise as in
Article 6 above.
ARTICLE 8
MANAGEMENT RIGHTS
Section 8.1 Contractor and City Rights: The City and the Contractor retains the full and
exclusive authority for the management of its operations, as set forth in this Article, unless
expressly limited or required by the other Articles of this Agreement or an MLA. In addition to
the following and other rights of the Contractors enumerated in this Agreement, the Contractors
expressly reserve their management rights and all the rights conferred upon them by law. The
Contractor’s rights include, but are not limited to, the right to:
8.1.1 Plan, direct and control operations of all work;
8.1.2 Hire, promote, transfer and layoff their own employees, respectively, as deemed
appropriate to satisfy work and/or skill requirements;
8.1.3 Promulgate and require all employees to observe reasonable job rules and security
and safety regulations;
8.1.4 Discharge, suspend or discipline their own employees for just cause;
8.1.5 Utilize, in accordance with City approval, any work methods, procedures or
techniques, and select, use and install any types or kinds of materials, apparatus or equipment,
regardless of source of manufacture or construction; assign and schedule work at their discretion;
and
8.1.6 Assign overtime, determine when it will be worked, and the number and identity
of employees engaged in such work, subject to such provisions in the applicable MLA(s)
requiring such assignments be equalized or otherwise made in a nondiscriminatory manner.
Section 8.2 Specific City Rights: In addition to the following and other rights of the City
enumerated in this Agreement, the City expressly reserves its management rights and all the
rights conferred on it by law. The City’s rights (and those of the Community Workforce
Coordinator on its behalf) include but are not limited to the right to:
8.2.1 Inspect any construction site or facility to ensure that the Contractor follows the
applicable safety and other work requirements;
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8.2.2 Require Contractors to establish a different work week or shift schedule for
particular employees as required to meet the operational needs of the Project Work at particular
locations;
8.2.3 At its sole option, terminate, delay and/or suspend any and all portions of the
Project Work at any time; prohibit some or all work on certain days or during certain hours of the
day to accommodate the ongoing operations of the City’s treatment facilities and/or to mitigate
the effect of ongoing Project Work on businesses and residents in the neighborhood of the
Project site; and/or require such other operational or schedule changes it deems necessary, in its
sole judgment, to effectively maintain its primary mission and remain a good neighbor to those
in the area of its facilities. (In order to permit the Contractors and Unions to make appropriate
scheduling plans, the City will provide the Community Workforce Coordinator, and the affected
Contractor(s) and Union(s) with reasonable notice of any changes it requires pursuant to this
section; provided, however, that if notice is not provided in time to advise employees not to
report for work, show-up pay shall be due pursuant to the provision of Article 6, Section 6.6);
8.2.4 Approve any work methods, procedures and techniques used by Contractors
whether or not these methods, procedures or techniques are part of industry practices or customs,
provided that nothing herein shall require such approval or extend any liability related to work
performed by Contractors to the City; and
8.2.5 Investigate and process complaints, through its Community Workforce
Coordinator, in the matter set forth in Articles 6 and 9.
Section 8.3 Use of Materials: There should be no limitations or restriction by Union upon a
Contractor’s choice of materials or design, nor, regardless of source or location, upon the full use
and utilization, of equipment, machinery, packaging, precast, prefabricated, prefinished, or
preassembled materials, tools or other labor saving devices, subject to the application of the State
Public Contract and Labor Codes as required by law in reference to offsite construction.
Generally, the onsite installation or application of such items shall be performed by the craft
having jurisdiction over such work. The City and its Community Workforce Coordinator shall
advise all Contractors of, and enforce as appropriate, the off-site application of the prevailing
wage law as it affects Project Work.
Section 8.4 Special Equipment, Warranties and Guaranties:
8.4.1 The Parties recognize that the Contractor will initiate from time to time the use of
new technology, equipment, machinery, tools, and other labor-savings devices and methods of
performing Project Work. The Union agrees that they will not restrict the implementation of such
devices or work methods. The Unions will accept and will not refuse to handle, install or work
with any standardized and/or catalogue: parts, assemblies, accessories, prefabricated items,
preassembled items, partially assembled items, or materials whatever their source of manufacture
or construction.
8.4.2 If any disagreement between the Contractor and the Unions concerning the
methods of implementation or installation of any equipment, or device or item, or method of
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work, arises, or whether a particular part or pre-assembled item is a standardized or catalog part
or item, the work will precede as directed by the Contractor and the Parties shall immediately
consult over the matter. If the disagreement is not resolved, the affected Union(s) shall have the
right to proceed through the procedures set forth in Article 9.
ARTICLE 9
SETTLEMENT OF GRIEVANCES AND DISPUTES
Section 9.1 Cooperation and Harmony on Site:
9.1.1 This Agreement is intended to establish and foster continued close cooperation
between management and labor. The Council shall assign a representative to this Project for the
purpose of assisting the Unions, and working with the Community Workforce Coordinator,
together with the Contractors, to complete the construction of the Project economically,
efficiency, continuously and without any interruption, delays or work stoppages.
9.1.2 The Community Workforce Coordinator, the Contractors, Unions, and employees
collectively and individually, realize the importance to all Parties of maintaining continuous and
uninterrupted performance Project Work, and agree to resolve disputes in accordance with the
grievance provisions set forth in this Article or, as appropriate, those of Article 6 or 7.
9.1.3 The Community Workforce Coordinator shall oversee the processing of
grievances under this Article and Article 6, including the scheduling and arrangements of
facilities for meetings, selection of the arbitrator from the agreed-upon panel to hear the case,
and any other administrative matters necessary to facilitate the timely resolution of any dispute;
provided, however, it is the responsibility of the principal parties to any pending grievance to
insure the time limits and deadlines are met.
Section 9.2 Processing Grievances: Any questions arising out of and during the term of this
Agreement involving its interpretation and application, which includes applicable provisions of
the MLAs, but not jurisdictional disputes or alleged violations of Section 6.1 and 6.5 and similar
provisions, shall be considered a grievance and subject to resolution under the following
procedures.
Step 1. Employee Grievances: When any employee subject to the provisions of
this Agreement feels aggrieved by an alleged violation of this Agreement, the employee shall,
through his Union business representative or, job steward, within ten (10) working days after the
occurrence of the violation, give notice to the work site representative of the involved Contractor
stating the provision(s) alleged to have been violated. A business representative of the Union or
the job steward and the work site representative of the involved Contractor shall meet and
endeavor to adjust the matter within ten (10) working days after timely notice has been given. If
they fail to resolve the matter within the prescribed period, the grieving party may, within ten
(10) working days thereafter, pursue Step 2 of this grievance procedure provided the grievance is
reduced to writing, setting forth the relevant information, including a short description thereof,
the date on which the alleged violation occurred, and the provision(s) of the Agreement alleged
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to have been violated. Grievances and disputes settled at Step 1 shall be non-precedential except
as to the parties directly involved.
Union or Contractor Grievances: Should the Union(s) or any Contractor have
a dispute with the other Party(ies) and, if after conferring within ten (10) working days after the
disputing Party knew or should have known of the facts or occurrence giving rise to the dispute,
a settlement is not reached within five (5) working days, the dispute shall be reduced to writing
and processed to Step 2 in the same manner as outlined in 1(a) above for the adjustment of an
employee complaint.
Step 2. The business manager of the involved Union or his designee, together with
the site representative of the involved Contractor, and the labor relations representative of the
Community Workforce Coordinator, shall meet within seven (7) working days of the referral of
the dispute to this second step to arrive at a satisfactory settlement thereof. If the Parties fail to
reach an agreement, the dispute may be appealed in writing in accordance with the provisions of
Step 3 within seven (7) calendar days after the initial meeting at Step 2.
Step 3. (a) If the grievance shall have been submitted but not resolved under Step
2, either the Union or Contractor Party may request in writing to the Community Workforce
Coordinator (with copy (ies) to the other Party (ies)) within seven (7) calendar days after the
initial Step 2 meeting, that the grievance be submitted to an arbitrator selected from the agreed
upon list of experienced construction industry arbitrators below, on a rotational basis in the order
listed. Those arbitrators are: (1) Louis Zigman; (2) Sara Adler; (3) Fredric Horowitz; (4) Edna
Francis; (5) William Rule; (6) Walt Daugherty; and (7) Michael Rappaport. The decision of the
arbitrator shall be final and binding on all Parties and the fee and expenses of such arbitrations
shall be borne equally by the involved Contractor(s) and the involved Union(s).
(b) Failure of the grieving Party to adhere to the time limits
established herein shall render the grievance null and void. The time limits established herein
may be extended only by written consent of the Parties involved at the particular step where the
extension is agreed upon. The arbitrator shall have the authority to make decisions only on
issues presented and shall not have the authority to change, amend, add to or detract from any of
the provisions of this Agreement.
(c) The fees and expenses incurred by the arbitrator, as well as those
jointly utilized by the Parties (e.g., conference room, court reporter, etc.) in arbitration, shall be
divided equally by the Parties to the arbitration, including Union(s) and Contractor(s) involved.
Section 9.3 Limit on Use of Procedures: Procedures contained in this Article shall not be
applicable to any alleged violation of Articles 6 or 7, with a single exception that any employee
discharged for violation of Section 6.2, or Section 7.3, may resort to the procedures of this
Article to determine only if he/she was, in fact, engaged in that violation.
Section 9.4 Notice: The Community Workforce Coordinator (and the City, in the case of any
grievance regarding the Scope of this Agreement) shall be notified by the involved Contractor of
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all actions at Steps 2 and 3, and further, the Community Workforce Coordinator shall, upon its
own request, be permitted to participate fully as a party in all proceedings at such steps.
ARTICLE 10
REGULATORY COMPLIANCE
Section 10.1 Compliance with All Laws: The Council and all Unions, Contractors,
subcontractors and their employed shall comply with all applicable federal and state laws,
ordinances and regulations including, but not limited to, those relating to safety and health,
employment and applications for employment. All employees shall comply with the safety
regulations established by the City and/or the Contractor. Workers must promptly report any
injuries or accidents as required by applicable policy and/or law.
Section 10.2 Monitoring Compliance: The Parties agree that the City shall require, and that the
Community Workforce Coordinator and Council shall monitor, compliance by all Contractors
and subcontractors with all federal and state law regulations that, from time to time may apply to
Project Work. It shall be the responsibility of both the Council and the Community Workforce
Coordinator (on behalf of the City) to investigate or monitor compliance with these various laws
and regulations and any suspected non-compliance observes by the Council shall be immediately
reported to the Community Workforce Coordinator. The Council may recommend to the
Community Workforce Coordinator and/or the City procedures to encourage and enforce
compliance with these laws and regulations.
Section 10.3 Prevailing Wage Compliance: The Council or Union shall refer all complaints
regarding any potential prevailing wage violation to the Community Workforce Coordinator,
who on its own, or with the assistance of the City’s labor compliance program, shall process,
investigate and resolve such complaints, consistent with Article 5, Section 5.4. The Council or
Union, as appropriate, shall be advised in a timely manner with regard to the facts and resolution,
if any, of any complaint. It is understood that this Section does not restrict any individual rights
as established under the State Labor Code, including the rights of an individual to file a
complaint with the State Labor Commissioner or to file a grievance for such violation under the
grievance procedure set forth in this Agreement.
Section 10.4 Violations of Law: Based upon a finding of violation by the City of a federal and
state law, and upon notice to the Contractor that it or its subcontractors are in such violation, the
City, in the absence of the Contractor or subcontractor remedying such violation, shall take such
action as it is permitted by law or contract to encourage that Contractor to come into compliance,
including, but not limited to, assessing fines and penalties, and/or removing the offending
Contractor from Project Work. Additionally, in accordance with the Agreement between the City
and the Contractor, the City may cause the Contractor to remove from Project Work any
subcontractor who is in violation of state or federal law.
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ARTICLE 11
SAFETY AND PROTECTION OF PERSON AND PROPERTY
Section 11.1 Safety:
11.1.1 It shall be the responsibility of each Contractor to ensure safe working conditions
and employee compliance with any safety rules contained herein or established by the City
and/or the Contractor. It is understood that employees have an individual obligation to use
diligent care to perform their work in a safe manner and to protect themselves and the property
of the Contractor and the City.
11.1.2 Employees shall be bound by the safety, security, and visitor rules established by
the Contractor and/or the City. These rules will be published and posted. An employee’s failure
to satisfy his/her obligations under this section will subject him/her to discipline, up to and
including discharge.
11.1.3 The Parties to this Agreement adopt the Tri Counties Building and Construction
Trades Council Approved Drug and Alcohol Testing Policy, a copy of which is attached hereto
as Attachment “D,” and which shall be the policy and procedure utilized under this Agreement.
Section 11.2 Suspension of Work for Safety: A Contractor may suspend all or a portion of the
job to protect the life and safety of employees. In such cases, employees will be compensated
only for the actual time worked; provided, however, that where the Contractor requests
employees to remain at the site and be available for work, the employees will be compensated
for stand-by time at their basic hourly rate of pay.
Section 11.3 Water and Sanitary Facilities: The Contractor shall provide adequate supplies of
drinking water and sanitary facilities for all employees as required by state law or regulation.
ARTICLE 12
TRAVEL AND SUBSISTENCE
Travel expenses, travel time, subsistence allowances, zone rates and parking reimbursements
shall be paid in accordance with the applicable MLA unless superseded by the applicable
prevailing wage determination.
ARTICLE 13
APPRENTICES
Section 13.1 Importance of Training: The Parties recognize the need to maintain continuing
support of the programs designed to develop adequate numbers of competent workers in the
construction industry, the obligation to capitalize on the availability of the local work force in the
area served by the City, and the opportunities to provide continuing work under the construction
program. To these ends, the Parties will facilitate, encourage, and assist local residents to
commence and progress in an Approved Apprenticeship Programs and/or training programs in
the construction industry leading to participation in such apprenticeship programs. The City, the
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Community Workforce Coordinator, and the Council, will work cooperatively to identify, or
establish and maintain, effective programs and procedures for persons interested in entering the
construction industry and which will help prepare them for the formal joint labor/management
apprenticeship programs maintained by the signatory Unions.
Section 13.2 Use of Apprentices:
13.2.1 Apprentices used on Projects under this Agreement shall be registered in
Approved Apprenticeship Programs approved by the State of California and the Federal
Department of Labor, to the extent required by any Project funding source. Apprentices may
comprise up to thirty percent (30%) of each craft’s work force at any time, unless the standards
of the applicable joint apprenticeship committee confirmed by the Division of Apprenticeship
Standards (“DAS”), establish a lower or higher maximum percentage, and where such is the
case, the applicable Union should use its best efforts with it’s apprenticeship committee and, if
necessary, the DAS to permit up to thirty percent (30%) apprentices on the Project.
13.2.2 The Unions agree to cooperate with the Contractor in furnishing apprentices as
requested up to the maximum percentage. The apprentice ratio for each craft shall be in
compliance, at a minimum, with the applicable provisions of the Labor Code relating to
utilization of apprentices. The City shall encourage such utilization, and, both as to apprentices
and the overall supply of experienced workers, the Community Workforce Coordinator will
work with the Council to assure appropriate and maximum utilization of apprentices and the
continuing availability of both apprentices and journey persons.
13.2.3 The Parties agree that apprentices will not be dispatched to Contractors working
under this Agreement unless there is a journeyman working on the project where the apprentice
is to be employed who is qualified to assist and oversee the apprentice’s progress through the
program in which he is participating.
13.2.4 All apprentices shall work under the direct supervision of a journeyman from the
trade in which the apprentice is indentured. A journeyman shall be defined as set forth in the
California Code of Regulations, Title 8 [apprenticeship], Section 205, which defines a
journeyman as a person who has either completed an accredited apprenticeship in his or her craft,
or has completed the equivalent of an apprenticeship in length and content of work experience
and all other requirements in the craft which has workers classified as journeyman in the
apprenticeship occupation. Should a question arise as to a journeyman’s qualification under this
subsection, the Contractor shall provide adequate proof evidencing the worker’s qualification as
a journeyman to the Community Workforce Coordinator and the Council.
ARTICLE 14
PRE-JOB CONFERENCES
Each Prime Contractor will conduct a pre-job conference with the Unions for it and all of its
subcontractors not later than fourteen (14) calendar days prior to commencing work for each stage
of the Project . Each Contractor conducting a pre-job shall notify the Council and all subcontractors
of all tiers, who shall participate in such conferences, ten (10) days in advance of all such
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conferences. The purpose of the conference will be to, among other things, determine craft
manpower needs, schedule of work for the contract and project work rules/owner rules. The
Council, the Community Workforce Coordinator, and the City shall be advised in advance of all
such conferences and may participate if they wish. All work assignments shall be disclosed by the
Prime Contractor and all Contractors at the pre-job conference. Should there be Project Work that
was not previously discussed at the pre-job conference, or additional project work be added, the
contractors performing such work will conduct a separate pre-job conference for such newly
included work. Any Union in disagreement with the proposed assignment shall notify the
Contractor of its position in writing, with a copy to Community Workforce Coordinator, within
seven (7) calendar days thereafter. Within seven (7) calendar days after the period allowed for
Union notices of disagreement with the Contractor’s proposed assignments, but prior to the
commencement of any work, the Contractor shall make final assignments in writing with copies
to the Council and to the Community Workforce Coordinator.
ARTICLE 15
LABOR/MANAGEMENT COOPERATION
Section 15.1 Joint Committee: The Parties to this Agreement shall establish a six (6) person
Joint Administrative Committee (JAC). This JAC shall be comprised of three (3) representatives
selected by the City and three (3) representatives selected by the Council to monitor compliance
with the terms and conditions of this Agreement. Each representative shall designate an alternate
who shall serve in his or her absence for any purpose contemplated by this Agreement.
Section 15.2 Functions of Joint Committee: The Committee shall meet on a schedule to be
determined by the Committee or at the call of the joint chairs, to discuss the administration of the
Agreement, the progress of the Project, general labor management problems that may arise, and
any other matters consistent with this Agreement. Substantive grievances or disputes arising
under Articles 6, 7 or 9 shall not be reviewed or discussed by this Committee but shall be
processed pursuant to the provisions of the appropriate Article. The Community Workforce
Coordinator shall be responsible for the scheduling of the meetings, the preparation of the
agenda topics for the meetings, with input from the Unions the Contractors and the City. Notice
of the date, time and place of meetings, shall be given to the Committee members at least three
(3) business days prior to the meeting. The City should be notified of the meetings and invited to
send a representative(s) to participate. The Community Workforce Coordinator shall prepare
quarterly reports on apprentice utilization and the training and employment of City residents, and
a schedule of Project Work and estimated number of craft workers needed. The Committee or an
appropriate subcommittee, may review such reports and make any recommendations for
improvement, if necessary, including increasing the availability of skilled trades, and the
employment of local residents or other individuals who should be assisted with appropriate
training to qualify for apprenticeship programs.
ARTICLE 16
SAVINGS AND SEPARABILITY
Section 16.1 Savings Clause: It is not the intention of the City, the Community Workforce
Coordinator, Contractor or the Union parties to violate any laws governing the subject matter of
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City of San Luis Obispo 30 Community Workforce Agreement
this Agreement. The Parties hereto agree that in the event any provision of this Agreement is
finally held or determined to be illegal or void as being in contravention of any applicable law or
regulation, the remainder of the Agreement shall remain in full force and effect unless the part or
parts so found to be void are wholly inseparable from the remaining portions of this Agreement.
Further, the Parties agree that if and when any provision(s) of this Agreement is finally held or
determined to be illegal or void by a court of competent jurisdiction, the Parties will promptly
enter into negotiations concerning the substantive effect of such decision for the purposes of
achieving conformity with the requirements of any applicable laws and the intent of the Parties
hereto. If the legality of this Agreement is challenged and any form of injunctive relief is
granted by any court, suspending temporarily or permanently the implementation of this
Agreement, then the Parties agree that all Project Work that would otherwise be covered by this
Agreement should be continued to be bid and constructed without application of this Agreement
so that there is no delay or interference with the ongoing planning, bidding and construction of
any Project Work.
Section 16.2 Effect of Injunctions or Other Court Orders: The Parties recognize the right of the
City to withdraw, at its absolute discretion, the utilization of the Agreement as part of any bid
specification should a Court of competent jurisdiction issue any order, or any applicable statute
which could result, temporarily or permanently in delay of the bidding, awarding and/or
construction on the Project. Notwithstanding such an action by the City, or such court order or
statutory provision, the Parties agree that the Agreement shall remain in full force and effect on
covered Project Work to the maximum extent legally possible.
ARTICLE 17
WAIVER
A waiver of or a failure to assert any provisions of this Agreement by any or all of the Parties
hereto shall not constitute a waiver of such provision for the future. Any such waiver shall not
constitute a modification of the Agreement or change in the terms and conditions of the
Agreement and shall not relieve, excuse or release any of the Parties from any of their rights,
duties or obligations hereunder.
ARTICLE 18
AMENDMENTS
The provisions of this Agreement can be renegotiated, supplemented, rescinded or otherwise
altered only by mutual agreement in writing, hereafter signed by the negotiating Parties hereto.
ARTICLE 19
ENTIRE AGREEMENT
19.1 This Agreement represents the complete understanding of the Parties. The provisions of
this Agreement, including the MLAs, which are incorporated herein by reference, shall apply to
the work covered by this Agreement. Where a subject covered by the provisions of this Agreement
is also covered by a MLA, the provisions of this Agreement shall prevail. Where a subject is
covered by the provisions of a MLA and is not covered by this Agreement, the provisions of the
MLA shall prevail.
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City of San Luis Obispo 31 Community Workforce Agreement
19.2 The parties agree that this Agreement, including the MLAs incorporated by reference,
covers all matters affecting wages, hours, and other terms and conditions of employment and that
during the term of this Agreement the Parties will not be required to negotiate on any further
matters affecting these or any other subject not specifically set forth in this Agreement except by
mutual agreement of the Parties.
19.3 This Agreement may be executed in counterparts, such that original signatures may appear
on separate pages and when bound together all necessary signatures shall constitute an original.
Facsimile or PDF signature pages transmitted to other parties to this Agreement shall be deemed
the equivalent to original signatures.
ARTICLE 20
DURATION OF THE AGREEMENT
Section 20.1 Duration:
20.1.1 This Agreement shall be effective from the date signed by all Parties and shall
remain in effect until completion of all Project Work or City acceptance of phases thereof.
Section 20.2 Turnover and Final Acceptance of Completed Work:
20.2.1 Construction of any phase, portion, section, or segment of Project Work shall be
deemed complete when such phase, portion, section or segment has been turned over to the City
by the Contractor and the City has accepted such phase, portion, section, or segment. As areas
and systems of the Project are inspected and construction-tested and/or approved and accepted
by the City or third parties with the approval of the City, the Agreement shall have no further
force or effect on such items or areas, except when the Contractor is directed by the City to
engage and repairs or modifications required by its contract(s) with the City.
20.2.2 Notice of each final acceptance received by the Contractor will be provided to the
Council with the description of what phase, portion, section or segment, etc. has been accepted.
Final acceptance may be subject to a “punch” list, and in such case, the Agreement will continue
to apply to each such item on the list until it is completed to the satisfaction of the City and
Notice of Acceptance is given by the City or its representative to the Contractor. At the request
of the Union, complete information describing any “punch” list work, as well as any additional
work required of a Contractor at the direction of the City pursuant to (a) above, involving
otherwise turned-over and completed facilities which have been accepted by the City, will be
available from the Community Workforce Coordinator.
IN WITNESS whereof the Parties have caused this Continuity of Work Agreement to be
executed as of the date and year above stated.
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CITY OF SAN LUIS OBISPO TRI-COUNTIES
BUILDING & CONSTRUCTION
TRADES COUNCIL
By: ________________________________ By: ________________________________
Tony Skinner, Executive Secretary
Dated: ___________________________ Dated: ___________________________
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TRI-COUNTIES BUILDING AND CONSTRUCTION
TRADES COUNCIL CRAFT UNIONS AND DISTRICT COUNCILS
Asbestos Heat & Frost Insulators (Local 5) _________________________
Boilermakers (Local 92) _________________________
Bricklayers & Allied Craftworkers (Local 4) _________________________
Cement Masons (Local 600) _________________________
Electricians (Local 639) _________________________
Elevator Constructors (Local 18) _________________________
Iron Workers (Local 155) _________________________
Laborers (Local 220) _________________________
Operating Engineers (Local 12) _________________________
Operating Engineers (Local 12) _________________________
Operating Engineers (Local 12) _________________________
Painters & Allied Trades DC 36 _________________________
Pipe Trades (Local 403) _________________________
Pipe Trades (Local 345) _________________________
Pipe Trades District Council No. 16 _________________________
Pipe Trades (Sprinkler Fitters Local 669) _________________________
Plasterers (Local 200) _________________________
Roofers & Waterproofers (Local 36) _________________________
Sheet Metal Workers (Local 104) _________________________
Teamsters (Local 186) _________________________
Southwest Regional Council of Carpenters _________________________
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City of San Luis Obispo 34 Community Workforce Agreement
ATTACHMENT A
LETTER OF ASSENT
To be signed by all contractors awarded work covered by the
Community Workforce Agreement prior to commencing work.
[Contractor’s Letterhead]
Community Workforce Coordinator
-------------------------------
-------------------------------
Attn: __________________
Re: City of San Luis Obispo, Water Resource Recovery Facility Project, Community
Workforce Agreement - Letter of Assent
Dear Sir:
This is to confirm that [name of company] agrees to be party to and bound by the City of San
Luis Obispo, Water Resource Recovery Facility Project, Community Workforce Agreement
effective _______, 2018, as such Agreement may, from time to time, be amended by the
negotiating parties or interpreted pursuant to its terms. Such obligation to be a party and bound
by this Agreement shall extend to all work covered by the Agreement undertaken by this
Company on the project and this Company shall require all of its contractors and subcontractors
of whatever tier to be similarly bound for all work within the scope of the Agreement by signing
and furnishing to you an identical Letter of Assent prior to their commencement of work.
Sincerely,
[Name of Construction Company]
By: ________________________________
Name: ________________________________
Title: ________________________________
Contractor State License No. ________________________________
Project: _____________________________
[Copies of this letter must be submitted to the Community Workforce Coordinator and to the
Council per Section 2.4.2]
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City of San Luis Obispo 35 Community Workforce Agreement
ATTACHMENT B
Local Resident Zip Codes
(Tier 1)
[City of San Luis Obispo]
93401
93403
93405
93406
93407
93408
93409
93410
(Tier 2)
[Remaining zip codes in the County of San Luis Obispo]
93252 93430 93445 93454
93402 93432 93446 93461
93420 93433 93449 93465
93422 93435 93451
93426 93442 93452
93428 93444 93453
(Tier 3)
[All zip codes in the Santa Barbara and Monterey counties]
93032 93252 93450 93930
93013 93254 93901 93932
93067 93427 93905 93933
93101 93429 93906 93940
93103 93434 93907 93943
93105 93436 93908 93944
93106 93437 93920 93950
93108 93440 93923 93953
93109 93441 93924 93955
93110 93455 93925 93960
93111 93458 93926 93962
93117 93460 93927 95004
95012
95039
95076
93463
(Tier 4)
(All zip codes in Ventura County)
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City of San Luis Obispo 36 Community Workforce Agreement
ATTACHMENT C
CITY OF SAN LUIS OBISPO
WATER RESOURCE RECOVERY FACILITY PROJECT
CRAFT REQUEST FORM
TO THE CONTRACTOR: Please complete and fax or email this form to the applicable union to request craft
workers that fulfill the hiring requirements for this project. After faxing or emailing your request, please call the
Union to verify receipt and substantiate their capacity to furnish workers as specified below. Please print your Fax
Transmission Verification Reports or email and keep copies for your records.
The City of San Luis Obispo, Water Resource Recovery Facility Project, Community Workforce Agreement
establishes a goal that 30% of all of the construction labor hours worked on the Project shall be from qualified
workers residing, as well as “Veterans,” regardless of where they reside: First, Area Residents residing in those first-
tier zip codes which cover the City of San Luis Obispo, as reflected on the attached list of zip codes, second, within
San Luis Obispo County, third, within Santa Barbara and Monterey counties, fourth, within Ventura County. For
Dispatch purposes, employees residing within any of these four (4) areas, as well as Veterans, regardless of where
they reside, shall be referred to as Local Residents.
TO THE UNION: Please complete the “Union Use Only” section on the next page and fax this form back to the
requesting Contractor. Be sure to retain a copy of this form for your records.
CONTRACTOR USE ONLY
To: Union Local # Fax# ( ) Date:
Cc: Community Workforce Coordinator
From: Company: Issued By:
Contact Phone: ( ) Contact Fax: ( )
PLEASE PROVIDE ME WITH THE FOLLOWING UNION CRAFT WORKERS.
Craft Classification
(i.e., plumber, painter,
etc.)
Journeyman
or
Apprentice
Local Resident
or
General Dispatch
Number
of
workers
needed
Report Date Report Time
TOTAL WORKERS REQUESTED = ______________
Please have worker(s) report to the following work address indicated below:
Project Name: _______________________ Site: _____________________ Address: ________________________
Report to: _______________________ On-site Tel: __________________ On-site Fax: ___________________
Comment or Special Instructions: ________________________________________________________________
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City of San Luis Obispo 37 Community Workforce Agreement
UNION USE ONLY
WORKER REFERRED
Date dispatch request received:
Dispatch received by:
Classification of worker requested:
Classification of worker dispatched:
Name:
Date worker was dispatched:
Is the worker referred a: (check all that apply)
JOURNEYMAN
Yes _____ No _____
APPRENTICE
Yes _____ No _____
LOCAL AREA RESIDENT
Yes _____ No _____
GENERAL DISPATCH FROM OUT OF WORK LIST
Yes _____
No _____
[This form is not intended to replace a Union’s Dispatch or Referral Form
normally given to the employee when being dispatched to the jobsite.]
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ATTACHMENT D
TRI-COUNTIES BUILDING AND CONSTRUCTION
TRADES COUNCIL
APPROVED
DRUG AND ALCOHOL TESTING POLICY
The Parties recognize the problems which drug and alcohol abuse have created in the
construction industry and the need to develop drug and alcohol abuse prevention programs.
Accordingly, the Parties agree that in order to enhance the safety of the work place and to
maintain a drug and alcohol free work environment, individual Employers may require
applicants or employees to undergo drug and alcohol testing.
1. It is understood that the use, possession, transfer or sale of illegal drugs, narcotics,
or other unlawful substances, as well as being under the influence of alcohol and the possession
or consuming alcohol is absolutely prohibited while employees are on the Employer’s job
premises or while working on any jobsite in connection with work performed under the
Community Workforce Agreement (“CWA”).
2. No Employer may implement a drug testing program which does not conform in
all respects to the provisions of this Policy.
3. No Employer may implement drug testing at any jobsite unless written notice is
given to the Union setting forth the location of the jobsite, a description of the project under
construction, and the name and telephone number of the Project Supervisor. Said notice shall be
addressed to the office of each Union signing the CWA. Said notice shall be delivered in person
or by registered mail before the implementation of drug testing. Failure to give such notice shall
make any drug testing engaged in by the Employer a violation of the CWA, and the Employer
may not implement any form of drug testing at such jobsite for the following six months.
4. An employer who elects to implement drug testing pursuant to this Agreement
shall require all employees on the Project to be tested. With respect to individuals who become
employed on the Project subsequent to the proper implementation of this drug testing program,
such test shall be administered upon the commencement of employment on the project, whether
by referral from a Union Dispatch Office, transfer from another project, or another method.
Individuals who were employed on the project prior to the proper implementation of this drug
testing program may only be subjected to testing for the reasons set forth in Paragraph 5(f) (1)
through 5(f) (3) of this Policy. Refusal to undergo such testing shall be considered sufficient
grounds to deny employment on the project.
5. The following procedure shall apply to all drug testing:
a. The Employer may request urine samples only. The applicant or employee
shall not be observed when the urine specimen is given. An applicant or employee, at his or her
sole option, shall, upon request, receive a blood test in lieu of a urine test. No employee of the
Employer shall draw blood from a bargaining unit employee, touch or handle urine specimens, or
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in any way become involved in the chain of custody of urine or blood specimens. A Union
Representative, subject to the approval of the individual applicant or employee, shall be
permitted to accompany the applicant or employee to the collection facility to observe the
collection, bottling, and sealing of the specimen.
b. The testing shall be done by a laboratory approved by the National
Institute on Drug Abuse (NIDA), which is chosen by the Employer and the Union.
c. An initial test shall be performed using the Enzyme Multiplied
Immunoassay Technique (EMZT). In the event a question or positive result arises from the initial
test, a confirmation test must be utilized before action can be taken against the applicant or
employee. The confirmation test will be by Gas Chromatography Mass Spectrometry (GC/MS).
Cutoff levels for both the initial test and confirmation test will be those established by the
National Institute on Drug Abuse. Confirmed positive samples will be retained by the testing
laboratory in secured long-term frozen storage for a minimum of one year. Handling and
transportation of each sample must be documented through strict chain of custody procedures.
d. In the event of a confirmed positive test result the applicant or employee
may request, within forty-eight (48) hours, a sample of his/her specimen from the testing
laboratory for purposes of a second test to be performed at a second laboratory, designated by the
Union and approved by NDA. The retest must be performed within ten (10) days of the request.
Chain of custody for this sample shall be maintained by the Employer between the original
testing laboratory and the Union's designated laboratory. Retesting shall be performed at the
applicant’s or employee’s expense. In the event of conflicting test results the Employer may
require a third test.
e. If, as a result of the above testing procedure, it is determined that an
applicant or employee has tested positive, this shall be considered sufficient grounds to deny the
applicant or employee his/her employment on the Project.
f. No individual who tests negative for drugs or alcohol pursuant to the
above procedure and becomes employed on the Project shall again be subjected to drug testing
with the following exceptions:
1. Employees who are involved in industrial accidents resulting in
damage to plant, property or equipment or injury to him/herself or others may be tested pursuant
to the procedures stated hereinabove.
2. The Employer may test employees following thirty (30) days
advance written notice to the employee(s) to be tested and to the applicable Union. Notice to the
applicable Union shall be as set forth in Paragraph 3 above and such testing shall be pursuant to
the procedures stated hereinabove.
3. The Employer may test an employee where the Employer has
reasonable cause to believe that the employee is impaired from performing his/her job.
Reasonable cause shall be defined as exhibiting aberrant or unusual behavior, the type of which
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is a recognized and accepted symptom of impairment (i.e., slurred speech, unusua1 lack of
muscular coordination, etc.). Such behavior must be actually observed by at least two persons,
one of whom shall be a Supervisor who has been trained to recognize the symptoms of drug
abuse or impairment and the other of whom shall be the job steward. If the job steward is
unavailable or there is no job steward on the project the other person shall be a member of the
applicable Union’s bargaining unit. Testing shall be pursuant to the procedures stated
hereinabove. Employees who are tested pursuant to the exceptions set forth in this paragraph and
who test positive will be removed from the Employer's payroll.
g. Applicants or employees who do not test positive shall be paid for all time
lost while undergoing drug testing. Payment shall be at the applicable wage and benefit rates set
forth in the applicable Union’s Master Labor Agreement. Applicants who have been dispatched
from the Union and who are not put to work pending the results of a test will be paid waiting
time until such time as they are put to work. It is understood that an applicant must pass the test
as a condition of employment. Applicants who are put to work pending the results of a test will
be considered probationary employees.
6. The employers will be allowed to conduct periodic job site drug testing on the
Project under the following conditions:
a. The entire jobsite must be tested, including any employee or
subcontractor’s employee who worked on that project three (3) working days before or after the
date of the test;
b. Jobsite testing cannot commence sooner than thirty (30) days after start of
the work on the Project;
c. Prior to start of periodic testing, a business representative will be allowed
to conduct an educational period on company time to explain periodic jobsite testing program to
affected employees;
d. Testing shall be conducted by a N.I.D.A. certified laboratory, pursuant to
the provisions set forth in Paragraph 5 hereinabove.
e. Only two periodic tests may be performed in a twelve month period.
7. It is understood that the unsafe use of prescribed medication, or where the use of
prescribed medication impairs the employee's ability to perform work, is a basis for the
Employer to remove the employee from the jobsite.
8. Any grievance or dispute which may arise out of the application of this
Agreement shall be subject to the grievance and arbitration procedures set forth in the CWA.
9. The establishment or operation of this Policy shall not curtail any right of any
employee found in any law, rule or regulation. Should any part of this Agreement be found
unlawful by a court of competent jurisdiction or a public agency having jurisdiction over the
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parties, the remaining portions of the Agreement shall be unaffected and the parties shall enter
negotiations to replace the affected provision.
10. Present employees, if tested positive, shall have the prerogative for rehabilitation
program at the employee’s expense. When such program has been successfully completed the
Employer shall not discriminate in any way against the employee. If work for which the
employee is qualified exists he/she shall be reinstated.
11. The Employer agrees that results of urine and blood tests performed hereunder
will be considered medical records held confidential to the extent permitted or required by law.
Such records shall not be released to any persons or entities other than designated Employer
representatives and the applicable Union. Such release to the applicable Union shall only be
allowed upon the signing of a written release and the information contained therein shall not be
used to discourage the employment of the individual applicant or employee on any subsequent
occasion.
12. The Employer shall indemnify and hold the Union harmless against any and all
claims, demands, suits, or liabilities that may arise out of the application of this Agreement
and/or any program permitted hereunder.
13. Employees who seek voluntary assistance for substance abuse may not be
disciplined for seeking such assistance. Requests from employees for such assistance shall
remain confidential and shall not be revealed to other employees or management personnel
without the employee's consent. Employees enrolled in substance abuse programs shall be
subject to all Employer rules, regulations and job performance standards with the understanding
that an employee enrolled in such a program is receiving treatment for an illness.
14. This Memorandum, of Understanding shall constitute the only Agreement in effect
between the parties concerning drug and alcohol abuse, prevention and testing. Any
modifications thereto must be accomplished pursuant to collective bargaining negotiations
between the parties.
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DRUG ABUSE PREVENTION AND DETECTION
APPENDIX A
CUTOFF LEVELS
DRUG SCREENING
METHOD
SCREENING
LEVEL **
CONFIRMATION
METHOD
CONFIRMATION
LEVEL
Alcohol EMIT 0.02% CG/MS 0.02%
Amphetamines EMIT 1000 ng/m* CG/MS 500 ng/ml*
Barbiturates EMIT 300 ng/ml CG/MS 200 ng/ml
Benzodiazepines EMIT 300 ng/ml CG/MS 300 ng/ml
Cocaine EMIT 300 ng/ml* CG/MS 150 ng/ml*
Methadone EMIT 300 ng/ml CG/MS 100 ng/ml
Methaqualone EMIT 300 ng/ml CG/MS 300 ng/ml
Opiates EMIT 2000 ng/ml* CG/MS 2000 ng/ml*
PCP (Phencyclidine) EMIT 25 ng/ml* CG/MS 25 ng/ml*
THC (Marijuana) EMIT 50 ng/ml* CG/MS 15 ng/ml*
Propoxyphene EMIT 300 ng/ml CG/MS 100 ng/ml
* SAMHSA specified threshold
** A sample reported positive contains the Indicated drug at or above the cutoff level
for that drug. A negative sample either contains no drug or contains a drug below the cutoff
level.
EMIT - Enzyme Immunoassay
CC/MS - Gas Chromatography/Mass Spectrometry
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SIDE LETTER OF AGREEMENT
TESTING POLICY FOR DRUG ABUSE
It is hereby agreed between the parties hereto that an Employer who has otherwise properly
implemented drug testing, as set forth in the Testing Policy for Drug Abuse, shall have the right
to offer an applicant or employee a "quick" drug screening test. This “quick” screen test shall
consist either of the “ICUP” urine screen or similar test or an oral screen test. The applicant or
employee shall have the absolute right to select either of the two “quick” screen tests, or to reject
both and request a full drug test.
An applicant or employee who selects one of the quick screen tests, and who passes the test,
shall be put to work immediately. An applicant or employee who fails the “quick” screen test, or
who rejects the quick screen tests, shall be tested pursuant to the procedures set forth in the
Testing Policy for Drug Abuse. The sample used for the "quick" screen test shall be discarded
immediately upon conclusion of the test. An applicant or employee shall not be deprived of any
rights granted to them by the Testing Policy for Drug Abuse as a result of any occurrence related
to the “quick” screen test.
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Item 14
Meeting Date: 7/10/2018
FROM: Derek Johnson, City Manager
J. Christine Dietrick, City Attorney
Carrie Mattingly, Utilities Director
Justin Pickard, Water Systems Consulting, Inc., WRRF Project Consultant
SUBJECT: WATER RESOURCE RECOVERY FACILITY (WRRF) PROJECT LABOR
AGREEMENT EVALUATION
RECOMMENDATION
Receive a report on the potential use of a Project Labor Agreement in connection with the City’s
WRRF Project and provide direction to staff whether to proceed with negotiation of an
Agreement.
REPORT-IN-BRIEF
The purpose of this report is to review typical provisions in project labor agreements (PLAs) and
evaluate the potential impacts of key provisions on the City of San Luis Obispo’s (City) Water
Resource Recovery Facility Project (WRRF Project). The intent of the report is to evaluate the
potential impact of a PLA on the WRRF Project from a practical perspective. The memorandum
is not intended to be an exhaustive review of every provision included in PLAs or to provide an
opinion on the merit of a PLA for the WRRF Project.
PLAs are pre-hire collective bargaining agreements that establish standard terms and conditions
that apply to a specific construction project or category of projects, typically larger and more
complex projects. PLAs are typically negotiated between the project owner and the local
building trades council and/or individual construction trades, although PLAs can be directly
negotiated between contractors and construction trades. The agreements are negotiated prior to
advertisement for bids and become part of the bid package. The general contractor and
subcontractors of any tier must agree to be bound by the requirements of the agreement as part of
their bid submission and they must sign on to the agreement prior to performing any work on a
PLA-covered project.
Key PLA provisions include the establishment of 1) uniform work conditions; 2) hiring
procedures; 3) wages and benefits; 4) management rights; 5) labor dispute resolution procedures;
6) procedures to prevent work stoppages; and 7) agreement to adhere to existing Master Labor
Agreements (MLAs) for the trades subject to the PLA. In addition, PLAs often include
provisions to promote participation in covered projects from targeted categories of workers,
including residents, apprentices, historically underutilized residents and businesses, at-risk
persons, veterans, minority-owned businesses and disadvantaged business enterprises. The
Council expressed interest in the potential of the PLA structure for advancing local hire and local
economic development objectives.
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There are competing positions as to the value, utility and cost impacts of PLAs and this report
does not propose to resolve those conflicting positions. Rather, this report attempts to provide
the Council with as much objective, preliminary information as possible and facilitate a public
discussion of the potential benefits and impacts of a PLA specific to the WRRF Project, looking
at the likely time and expense associated with negotiating and implementing an agreement at this
stage of the WRRF Project planning. The Local Plumbers, Pipefitters and Refrigeration Fitters
Local Union 403 provided the Council with a binder of materials in support of its request that the
Council consider pursuing a PLA for the WRRF Project. Within that material are references to
multiple studies both supporting and opposing the PLA model and that material is available for
public review in the Council reading file.
Following discussion of this report and supporting materials, staff will seek Council direction
whether to pursue negotiations of a PLA for the WRRF Project.
DISCUSSION
The following sections detail typical provisions included in PLAs, and potential considerations
for the WRRF Project regarding each provision.
Work Conditions
Uniform Work Conditions
PLAs commonly include provisions to establish uniform work conditions across each of the
construction trades providing craft labor on the covered project. Conditions typically covered
include work hours, holidays, meal periods, break periods, overtime and double-time pay, shifts,
and shift differential pay. For contractors that are signatory to the unions, the Master Labor
Agreement with each individual trade sets forth standard work conditions. The Master Labor
Agreement for each trade can include slightly different provisions related to work conditions,
and a PLA can serve to standardize these conditions across all trades and simplify the
management process.
Many of the work conditions typically covered in PLAs are also addressed in the California
Labor Code including shift lengths, meal and break periods, and overtime/double-time pay. In
addition, the construction contract sets forth allowable work hours and holidays observed by the
project owner. In the absence of a PLA, California Labor Code and the construction contract
will establish the work conditions for the project in question.
WRRF Project Considerations
Standard work conditions provisions in a PLA are not anticipated to have a significant impact on
the WRRF Project, as many of the provisions typically included are addressed in the California
Labor Code and the construction contract documents.
Hiring Procedures
Union Recognition
PLAs designate the trade unions and the local or regional building trades council as the exclusive
source of craft labor on covered projects and the exclusive bargaining representative for craft
workers. In addition, employers must recognize the jurisdiction and scope of work specific to
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each trade as established in each Master Labor Agreement. Terms requiring compliance with
existing Master Labor Agreements are typically incorporated into the PLA.
Referral Systems
PLAs require that established union referral systems be used exclusively to obtain craft labor on
covered projects. If a union referral system is unable to refer workers within a defined period
typically 48 hours), contractors are often allowed to hire employees from other sources. PLAs
do not discriminate between union and non-union workers and referrals cannot be based on a
preference for union members over non-union members; however, non-union workers must
register with the union hiring hall to become eligible for assignment to a covered project
Core Employees
PLAs typically limit the number of employees that non-union contractors can bring to a project
without utilizing the union hiring hall system. These employees are termed “core” employees,
and typically include key positions such as foremen. Most agreements exclude key management
employees above the general foreman level from the requirements of the agreement. Employees
must meet specific requirements to be considered a core employee including being recently
active on the contractor’s payroll (i.e., for 60 of the 100 working days immediately prior to the
award of the contract), possessing licenses required for the performance of the project work, and
having the ability to safely perform the duties and functions of the trade for which they are
providing craft labor.
Non-union contractors can hire core employees on a one-to-one ratio with employees referred by
the union hiring hall up to a maximum number of core employees (typical limitations of 5 core
employees appear common but would be a term subject to negotiation). For example, the
contractor can hire a member of its core workforce first, followed by an employee referred from
the union hiring hall second, then another member of its core workforce. This process continues
until the maximum number of core employees specified in the PLA is reached. Core employee
provisions do not apply to union signatory contractors.
Union and Non-Union Contractor Comparison
For union contractors and on PLA-covered projects, Master Labor Agreements clearly define the
scope of work that can be performed by each individual trade, and workers are not allowed to
work outside of their classification/jurisdiction. Non-union contractors on projects not covered
by a PLA can allow their employees to perform a wider range of tasks. For example, a non-
union employee can perform functions of multiple trades (e.g., laborer, operating engineer,
cement mason), provided they are paid the appropriate prevailing wage rate for each
classification while performing the work.
Hiring procedures included in PLAs limit the ability of non-union contractors to utilize their core
workforce on covered projects. PLAs establish the maximum number of core employees that a
non-union contractor can employ on a project and require non-union contractors to use union
referral systems exclusively for obtaining craft labor. While non-union workers can register with
the union and become eligible to work on the project, they are subject to the hiring hall rules of
each specific trade. Union hiring halls maintain out-of-work lists, and applicants are typically
referred to projects based on the order in which they registered with the hiring hall (i.e., first
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come, first served). It is important to note that the hiring procedures and hiring hall rules are
specific to each local union.
Hiring procedures in PLAs do not significantly impact union signatory contractors. Signatory
contractors routinely use union referral systems to obtain craft labor and can request specific
employees by name, rather than requesting workers from the out-of-work list for each trade. In
addition, core employee provisions do not apply to union contractors and union contractors are
able to utilize their core workforce without limitation. Exceptions can include specific
requirements in Master Labor Agreements that restrict or limit participation of “traveling” union
members from their home union to the local union at the project location.
WRRF Project Considerations
The impact of PLA hiring procedure provisions on the WRRF Project depends largely on
whether the prequalified contractors eligible to bid on the Project are signatory to the individual
unions. Non-union contractors will be impacted by limits placed on their ability to utilize their
core workforce. Union contractors will not be significantly impacted by the hiring procedure
provisions as the procedures reflect their standard work practices, except for travel restrictions
imposed by local unions on union members working outside the jurisdiction of their home union.
Specialty Subcontractors
The PLA hiring procedures likely will impact smaller, specialty subcontractors more than the
general contractor and major subcontractors. Specialty subcontractors (e.g., roofers, glaziers, tile
installers, sheet metal workers, etc.) have a smaller role relative to the overall scope of the
WRRF Project, provide fewer employees and less craft hours, and are more likely to be local
contractors. Non-union specialty contractors with a small workforce generally rely more heavily
on their core employees, and limitations on their ability to fully utilize their core workforce could
disproportionately affect their ability to effectively perform their subcontracted scope of work, as
compared to larger contractors. In addition, small non-union contractors may not fully
understand the PLA requirements when submitting subcontract bids and may refuse to sign the
required letter of assent before beginning work on a PLA-covered project. This can result in cost
and schedule impacts associated with subcontractor substitutions.
Careful consideration should be given to the impacts of a PLA on smaller specialty contractors if
the City decides to move forward with an agreement. Negotiations with the building trades
should include a discussion of potential exemptions from the typical PLA hiring provisions and
core worker restrictions for small and specialty subcontractors performing limited scope on the
WRRF Project. Additionally, consideration should be given to mandatory pre-bid meetings to
ensure that all potential bidders and subs are aware of the PLA requirements, understand their
obligations and restrictions under a PLA and have an opportunity to have pre-bid questions
addressed to facilitate fully informed bids.
Construction Inspection
Construction inspectors, materials testers, and other personnel performing quality assurance and
quality control functions may also be impacted by the hiring procedures set forth in a PLA.
Construction inspectors are typically employed by a third-party construction manager through a
professional services agreement with the project owner. Materials testers and specialty
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inspectors (e.g., soils technicians, certified welding inspectors, reinforced concrete inspectors,
etc.) are typically employed as subconsultants to the construction manager. While professional
services are exempt from PLAs, construction inspectors, materials testers, and personnel
performing quality control and quality assurance generally are covered crafts under a PLA and
are subject to the typical hiring procedure provisions discussed in the preceding paragraphs.
The City is currently in the process of procuring a consultant to provide construction
management and inspection services for the WRRF Project. The City’s evaluation of
construction management firms will be partially based on the qualifications of the proposed
inspection staff. Construction inspectors must have experience providing quality assurance for
complex civil, structural, and mechanical treatment facility projects like the WRRF Project. As
providers of professional services, most construction management firms are not signatory to
construction unions and non-union firms will be subject to standard PLA hiring procedures,
including core worker provisions. It is anticipated that five to six inspectors will be employed on
the WRRF Project through the course of construction, and the City’s construction manager could
be required to obtain a portion of its inspection staff through the union hiring system.
The core worker provisions in a PLA will impact the construction manager’s ability to utilize its
inspection staff on the WRRF Project. Should the City elect to move forward with a PLA,
negotiations with the building trades should include a discussion of potential exemption from the
typical PLA hiring provisions and core worker restrictions for project staff performing quality
assurance work, including construction inspectors, specialty inspectors, and materials testers.
In addition, the construction management services contract is tentatively scheduled to be
executed in September 2018. If the City decides to enter into a PLA with the building trades, the
agreement will likely not be finalized before the construction manager is procured and the
construction management services contract will need to be renegotiated to reflect the terms of the
PLA. Depending on the length and complexity of negotiations, this could impact anticipated
contracting timelines.
Wages and Benefits
Wages
Wages for craft workers on public works projects are paid in accordance with applicable state
and federal prevailing wage rates. PLAs do not supersede applicable prevailing wage rates and
wages paid to craft workers are the same for PLA and non-PLA projects.
Benefits
The California Department of Industrial Relations (DIR) establishes basic hourly rates and fringe
benefit amounts that must be provided to the employee by the employer. Fringe benefits include
health and welfare, pension, vacation/holiday, training, and “other” benefits. “Other” benefits
include contributions to management relations boards, industry advancement funds, and other
miscellaneous initiatives specific to each trade. Non-union contractors must provide benefits of
equivalent value as the fringe benefit amounts established by the DIR or pay fringe benefits
directly to their employees in cash. Training benefits must be paid directly to a State-approved
apprenticeship program and are not paid directly to the employee as cash.
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Union contractors provide fringe benefit payments on behalf of their employees directly to union
trusts, who in turn provide benefits to their members. As with non-union contractors, training
benefits must be paid directly to a State-approved apprenticeship program and are not paid
directly to the union trust fund.
Union and Non-Union Contractor Comparison
On PLA-covered projects, all contractors, regardless of union affiliation, must pay fringe benefit
contributions directly to the union trust fund for each employee for the duration of the project.
Union contractors are not affected by this requirement as it reflects their normal business practice
and is in alignment with the Master Labor Agreements between the construction trades and union
employers.
The extent to which payment of fringe benefits to union trusts affects non-union contractors
depends largely on the benefits employers offer to their employees. If non-union contractors
provide retirement benefits such as 401k plans or health insurance, these benefits would no
longer be provided through the employer and would be provided through the union trust. For
non-union contractors that pay fringe benefit contributions directly to employees as cash, the
contractors would simply begin making these payments to the union trust on the employees’
behalf.
Information published by the United States Department of Labor Bureau of Labor Statistics
indicates that union workers have greater participation rates in medical benefit plans than non-
union workers, 79% versus 46%, respectively. In addition, union workers have greater
participation rates in retirement plans than non-union workers, 82% versus 47%, respectively
United States Department of Labor Bureau of Labor Statistics, 2017).
WRRF Project Considerations
Union members must work a minimum number of hours each year to become vested in union
pension programs. Non-union workers for whom fringe benefits are paid to the union trust by
their employer during the WRRF Project might not work sufficient hours to become vested and
may not ultimately realize any benefit from the trust fund contributions made on their behalf.
This issue may be more pronounced for non-union specialty subcontractor employees
performing limited scope on the WRRF Project (e.g., roofers, glaziers, tile installers, etc.). These
employees may not work sufficient hours to become vested in union trust funds because they
will be performing a discrete scope of work that will be completed in a short period of time on
the WRRF Project.
For non-union workers performing limited scope on the WRRF Project for a limited period,
employers may elect to continue providing their standard retirement and health benefits while
also providing fringe benefit payments directly to the union trust. Provision of benefit payments
to both the union trust and directly to the employee can result in increased costs to the employer.
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If the City decides to consider a PLA for the WRRF Project, negotiations with the building
trades should include a discussion of potential exemptions from the required union trust fund
benefit payments for small contractors performing limited scope on the WRRF Project.
Management Rights
PLAs include provisions detailing the rights maintained by management under the agreement.
PLAs typically give management exclusive rights to plan and direct the work; hire, layoff, and
promote employees; determine the number of employees required to prosecute the work;
determine means and methods of construction; select craft foremen; and assign and schedule the
work. The intent of these provisions is to preserve the ability of management to perform key
duties that are critical to the successful performance of work under the covered project.
WRRF Project Considerations
Management rights provisions are not anticipated to impact the WRRF Project. These provisions
are simply intended to clearly express to signatories that contractors retain the right to manage
the labor force on a covered project.
Work Stoppages
PLAs include provisions expressly prohibiting strikes, picketing, work stoppages, slowdowns,
and lockouts to ensure the continued performance of work and to prevent schedule delays on
covered projects, with limited exceptions. When employers and employees are unable to agree
on the terms and conditions of employment, employees may implement work stoppages such as
strikes, or slowdowns and employers can implement lockouts. Work stoppages are used to
compel either the employer or the employees to agree to the terms and conditions of employment
in dispute. Some PLAs allow unions to withhold craft labor in the event a contractor is
delinquent in payment of its weekly payroll or payments to the union trust.
Work stoppages can significantly impact a construction project as they interrupt the availability
of craft labor and delay performance of the work. Union employees are prevented from striking
on the basis of economic conditions when bound by an active collective bargaining agreement
and can only strike after a good faith effort has been made at collective bargaining. Union
employees are not constrained in their ability to strike on the basis of unfair labor practices when
certain conditions are met. It is beyond the scope of this report to detail the circumstances and
laws surrounding employers’ and employees’ ability to implement work stoppages.
WRRF Project Considerations
The construction trades in California have a long history of successful collective bargaining with
the construction industry. A review of work stoppage data compiled by the United States
Department of Labor Bureau of Labor Statistics did not identify any work stoppages by the
construction trades in California involving 1,000 or more workers over the last ten years (United
States Department of Labor Bureau of Labor Statistics, 2018). Work stoppages resulting from a
lapse in the collective bargaining agreements between the construction trades and the
construction industry do not present a significant risk to the WRRF Project.
Previous public works projects constructed by the City have been picketed by the construction
trades, and in isolated incidents, workers have refused to cross picket lines. In the event of a
picket at the WRRF Project, union workers might refuse to cross picket lines, impacting
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performance of the work. A PLA would expressly prohibit strikes, picketing, and work
stoppages and would mitigate this concern. It is recommended that additional analysis be
performed to better understand the membership rules of each trade regarding the ability of union
members to cross picket lines. This analysis would help quantify the risk of a work slowdown
resulting from a picket if a PLA is not in place for the WRRF Project.
Dispute Resolution
Dispute resolution provisions are included in PLAs to establish a uniform and timely process to
resolve project issues without slowing down or stopping the work. Disputes regarding the
jurisdiction of individual trades are settled in accordance with the Plan for the Settlement of
Jurisdictional Disputes in the Construction Industry (the Plan). The Plan is a broadly recognized
dispute resolution procedure established by the AFL-CIO and construction employer associations
that has been in place since 1984. When a jurisdictional dispute between trades arises on a
project covered by a PLA (e.g., laborer versus pipefitter scope for the installation of underground
pipelines), the issue is referred to the Plan for settlement. PLAs include provisions that prohibit
work slowdowns and stoppages while jurisdictional disputes are being resolved.
PLAs also include provisions related to resolution of grievances and disputes not specifically
related to jurisdictional issues. PLAs establish a defined, step-wise process for dispute resolution
that encourages resolution of project issues on the lowest possible level. The dispute resolution
process typically culminates with arbitration if not settled at a lower level, typically before an
arbitrator selected from an agreed upon list of arbitrators to facilitate timely resolution. As with
jurisdictional disputes, parties to a PLA cannot stop or slow down the work because of a
grievance or dispute.
WRRF Project Considerations
It is difficult to evaluate the impacts of PLA dispute resolution provisions on the WRRF Project.
Disputes on construction projects are typically resolved informally by the general contractor and
subcontractor management teams or through the formal dispute resolution and claims process
detailed in the contract documents on non-PLA projects.
Jurisdictional issues are more likely to arise between union contractors or on PLA-covered
projects where workers are not allowed to work outside of their classification, but where the
scope of work for multiple trades overlaps. For example, the scope of work for both laborers and
pipefitters includes installation of piping in water and wastewater treatment facilities. This
overlap in scope may result in a jurisdictional dispute depending on the amount of work in
question and the willingness of the trades to pursue resolution through the Plan. If a contractor
signatory to the laborers union bids the WRRF Project assuming laborers will install the
mechanical piping and assumes prevailing wage rates for laborers in its bid, but the piping work
is later found to be within the jurisdiction of the pipefitters at pipefitter prevailing wage rates, the
contractor would incur significant additional costs. Non-union contractors on projects not
subject to PLA agreements would not be faced with a jurisdictional dispute and could elect to
perform the work with laborers; however, the pipefitters could file a complaint with the DIR
Department of Industrial Relations) that the workers were not being paid the appropriate
prevailing wage rate, which would be subject to an investigation by the Division of Labor
Standards Enforcement.
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Targeted Worker Participation
Many PLAs include provisions to increase participation in covered projects by targeted
categories workers. Targeted categories typically include residents, apprentices, at-risk persons
e.g., economically disadvantaged individuals as defined in the agreement or those with prior low
level criminal records that can create barriers to employment), veterans, and disadvantaged
business enterprises. PLAs establish goals for the percentage of total craft hours on the covered
project to be performed by the targeted workers. Construction contractors can be required to
retain the services of a jobs coordinator, who works with the contractor, unions, local workforce
development agencies, and apprenticeship programs to help the contractor meet the participation
goals for each demographic set forth in the agreement.
WRRF Project Considerations
Targeted worker category provisions can be effective in increasing participation in the WRRF
Project by the targeted demographics and developing the local workforce. The success of
targeted worker participation provisions depends on commitment to the process by all parties to
the PLA through ongoing and active management.
Schedule
PLAs are typically negotiated between the project owner and the local or regional building trades
council, who represents a group of different craft unions. Some crafts anticipated to perform
work on a covered project might not be represented by the building trades council, and the PLA
would need to be negotiated with each of these crafts individually. The amount of time required
to negotiate a PLA varies widely and depends on the content of the agreement initially presented
by the building trades as a starting point to the negotiations. Once the City has reviewed the
draft agreement, it can identify the provisions that warrant additional discussion and negotiations
can begin.
It is estimated that the length of time required to negotiate a PLA for the WRRF Project could
range from two months to one year or more. If the City is willing to accept the standard PLA
agreement presented by the building trades council and detailed negotiations are not required, it
will take approximately two months to work through the City Council approval process and
circulate the final agreement for execution. If provisions of the standard agreement warrant
additional negotiations and the City is required to negotiate with multiple trades not represented
by the Building Trades Council, the process could take up to one year or more.
If the City elects to move forward with a PLA, the agreement must be in place prior to issuing
the bid advertisement for the WRRF Project, which is tentatively scheduled to be issued in
December 2018. The PLA must be included in the contract documents to inform prospective
bidders and subcontractors of their responsibility to comply with the terms and conditions of the
agreement. Implementing a PLA after contract award and start of construction would be difficult
and likely disrupt the WRRF Project.
One of the key drivers of the WRRF project is the Time Schedule Order (TSO) that requires the
City to be in compliance with nutrients and disinfection by-products by the fall of 2019. Delays
have already resulted in the City being unable to meet the disinfection requirements. The City is
in discussions with the Central Coast Water Board (CCWB) on possible regulatory pathways to
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reduce or eliminate fines for the TSO, but this issue has not been resolved. Additional delays
may result in added fines and enforcement actions.
The present construction climate throughout California has been volatile with projects recently
coming in over budget. Additional delays may result in escalation of construction costs and the
need to retain supporting professional services for the project.
Cost
Impacts of a PLA on construction bids are difficult to quantify and are beyond the scope of this
report to assess comprehensively. Proponents of PLAs assert that these agreements save money
by making overall labor reliability and project cost management more predictable, while
opponents argue that PLAs increase project costs due to labor agreement compliance
administration and union/fringe benefits contributions requirements. Information regarding the
arguments on both sides of this issue is readily available through previously published articles
and research. The anecdotal feedback staff received from public entity colleagues who have
completed projects subject to PLAs is that the bids received on their PLA projects did not seem
significantly out of scale in comparison to non-PLA projects of a similar size; however, the
consistent feedback was that it really isn’t possible to know what the cost impacts on a project
might have been absent a parallel bid process, with one including the PLA requirement and the
other not. This section will focus on the costs that are more readily quantifiable including costs
to support contract negotiations, costs to incorporate the PLA into the construction documents,
and costs to administer the PLA through construction.
PLA Negotiation
Negotiation of the PLA will require participation from the City’s Utilities Department, the City
Attorney’s office, outside legal counsel, and the WRRF Project Program Management Team.
Costs to support PLA negotiations will depend on the extent and duration of the negotiations and
can vary widely.
Contract Document Development
The construction contract documents will need to reflect the requirements of the PLA so
prospective bidders and subcontractors will be aware of their responsibilities regarding the
agreement. Language is typically included in the bid advertisement, bid form, agreement, and
the front-end documents to detail PLA requirements. In addition, the complete PLA is included
in the contract documents as part of the front-end documents or as an appendix. It is
recommended that a specification be developed to detail the targeted worker participation
requirements, as the procedures for meeting participation goals and reporting requirements are
typically not explained in detail in the PLA. The targeted worker specification will increase the
likelihood of meeting the participation goals set forth, increase transparency in the process, and
facilitate accountability of all parties to the agreement.
Modification of the construction contract documents to reflect the PLA will require participation
from the City’s Utilities Department, the City Attorney’s office, outside legal counsel, the design
engineer, and the WRRF Project Program Management Team.
PLA Administration
PLAs require that the project owner designate a Project Labor Coordinator to act as the owner’s
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agent and to facilitate implementation and compliance with the PLA. The Project Labor
Coordinator can be a member of the owner’s staff, but an outside contractor with specific
experience administering PLAs is typically used. In many cases, the Project Labor Coordinator
can also function as the labor compliance program administrator, which will be required on the
WRRF Project to satisfy the requirements of outside funding sources. It is assumed the City will
hire an outside contractor to serve as the Project Labor Coordinator if a PLA is negotiated.
PLAs include provisions for the establishment of a Joint Administrative Committee (JAC,
Committee) comprised of representatives from the owner and representatives from the building
trades. The JAC meets regularly to discuss issues associated with the PLA including project
issues, safety concerns, contractor relations, and disputes. The frequency of the JAC meetings is
left to the discretion of the Committee, but meetings are typically held on a quarterly basis. It is
anticipated that the City’s representatives on the JAC will include City Utilities Department staff
and representatives from the WRRF Project Program Management Team.
The City can require the construction contractor to retain the services of a Jobs Coordinator to
assist the contractor in meeting its obligations for targeted worker participation. The Jobs
Coordinator coordinates with the construction trades, apprenticeship programs, and local
workforce development agencies to identify potential workers that meet the criteria necessary to
qualify as a targeted worker for employment on the covered project. The Jobs Coordinator
assists the contractor in the preparation of reports including targeted worker hiring status reports
and manpower utilization plans. It is anticipated that the contractor will retain the services of an
outside consultant to serve as its Jobs Coordinator.
Table 1 below details the estimated costs for PLA implementation and administration for the
WRRF Project.
Table 1.PLA Implementation and Administration Cost Estimate
RESOURCE LowHighLowHighLowHigh
Utilities Department 2,181$3,444$ 574$ 574$2,985$4,362$
City Attorney 2,387$6,510$ 651$ 651$ 217$ 434$
Outside Counsel 20,400$51,600$7,800$12,600$1,200$2,400$
Design Engineer $8,904$11,130$
Program Management 9,760$20,496$4,880$7,320$33,672$51,728$
Project Labor Coordinator $119,660$176,390$
Jobs Coordinator $79,000$ 100,500$
SUBTOTAL 34,728$82,050$22,809$32,275$236,734$335,814$
PLA Negotiation
Contract Document
Development
PLA Administration
TASK
The total cost for PLA implementation and administration is estimated to cost between $294,271
and $450,139. The cost estimate assumes that the Project Labor Coordinator will also serve as
the administrator of the WRRF Project labor compliance program. Fifty percent of the total cost
of the Project Labor Coordinator has been assigned to PLA administration and the remaining
fifty percent of the cost has been assigned to labor compliance. Consequently, the total cost of
labor compliance and PLA administration is estimated to range between approximately $259,543
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and $368,069. If the City does not move forward with a PLA, it will still need to implement a
labor compliance program to satisfy outside funding requirements at a cost of approximately
120,000 to $177,000.
Alternative Local Hire Approaches
If the Council’s primary objective in pursuing a PLA is advancing local hire and economic
development objectives, there are other alternatives that can be considered and implemented via
contractual clauses in the bid documents. A good example of such provisions can be found in
the Alameda County General Services Agency contract for the Cherryland Community Center,
which included an “Enhanced Construction Outreach Program” that set goals for participation
and required the contractor to demonstrate enhanced efforts to engage small and local business
enterprises and other, historically disadvantaged groups, to perform project work (see
https://www.acgov.org/gsa/purchasing/bidContent_ftp/rfpDocs/1856_0_002219ECOP.pdf ). A
paper done for the League of California Cities has also been included in the Council reading file
and provides a detailed overview of the legal parameters and practical landscape around local
hire and purchase provisions, highlighting what is and is not legally permissible regarding local
hire preferences outside the PLA context. An effective program would need to incorporate
compliance documentation and monitoring provisions, which could also be incorporated into the
bid documents, so that bidders could factor any costs associated with such provisions into their
bid packages and progress toward objectives could be tracked. The development of the
contractual provisions would be done by project staff and consultants and would not require
negotiations with third parties or third-party compliance monitoring.
CONCURRENCES
The purpose of a Study Session is for informal discussions between staff, advisory bodies,
consultants, the public, and the City Council regarding specific programs, projects or policies.
Council may provide direction, but no formal action to approve the inclusion of a PLA into the
bid package for the WRRF project will be taken during a Study Session. Study Sessions may be
conducted in a variety of formats, including Public Workshops. Should Council direct staff to
move forward with negotiation of a PLA program, all Departments would be engaged in the
development and review of any program, which would be subject to final Council approval.
ENVIRONMENTAL REVIEW
There is no project subject to environmental review associated with the discussion and possible
negotiation of a PLA. Nothing related to the negotiation of a PLA affects otherwise applicable
environmental review of the WRRF project, which is in compliance with all applicable
requirements.
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FISCAL IMPACT
The likely fiscal impact of the inclusion of a PLA for the WRRF Project is not precisely
quantifiable, but preliminary anticipated cost impacts have been included in the cost section
above.
ALTERNATIVES
1. Direct staff to proceed with the negotiation of a PLA for inclusion with the bid package for the
WRRF, including local hiring preference components.
2. Direct staff to include provisions for local outreach and/or incentives for local hire in contract
documents, consistent with applicable legal limitations.
3.Direct staff to proceed with preparation of bid package without additional local outreach of
hire provisions.
Attachments:
a - Council Reading File - Binder of PLA Information
b - Council Reading File - League of CA Cities Paper on Local Hiring and Purchasing
Preferences
c - Council Reading File - Example Local Outreach Provisions for Contracts
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1
Water Resource Recovery
Facility Project
Project Labor Agreement
City Council Study Session – July 10, 2018
Recommendation
Receive a report on the potential use of a
Project Labor Agreement (PLA) in
connection with the City's WRRF Project
and provide direction to staff whether to
proceed with negotiation of an Agreement.
2
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2
PLA Defined
3
A Project Labor Agreement (PLA) is a pre-
hire collective bargaining agreement
between a project owner and the
construction trades. The agreement
establishes the terms and conditions of
employment for the covered project. Also
known as community workforce agreement,
project stabilization agreement, and
community partnership agreement.
City Council Previous Direction
April 17, 2018: Staff report on contractor
prequalification for the WRRF Project was pulled from
the consent calendar for discussion.
Public comment regarding local hiring and a PLA
was heard.
City Council directed staff to explore an agreement
which includes a local contracting preference or
incentive component.
4
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3
Study Session Objective
Review potential options for
incorporating a local hiring preference for
the WRRF Project including a PLA or
other contract terms.
5
Mission
Deliver a Water Resource Recovery
Facility in partnership with
stakeholders that provides economic,
social and environmental value to our
community
Vision
Create a community asset that is
recognized as supporting health, well-
being and quality of life
WRRF Project Charter - 2014
6
JP2
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Slide 6
JP2 Boiler plate slides from all WRRF presentations, not sure we want to spend time here.
Justin Pickard, 7/5/2018
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4
New NPDES Permit
Aging Infrastructure
Maximizing Reuse
Treatment Capacity
One Water
Project Drivers
7
Time Schedule Order (TSO)
November 30, 2019
Project Update - Funding
8
1. State Revolving Fund (SRF) Low Interest
Loan
2. California Office of Emergency Services
CalOES) Funding
3. Strategic Growth Council Funding
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5
Project Update - Process
9
1. Contractor Prequalification
2. Construction Manager Procurement
review note: this bid process did not
contemplate a PLA and would require a contract
amendment if direction is given to go forward
with a PLA)
3. 95% Design Submittal
Next Steps
10
Identify Prequalified Contractors July 2018
Select Construction Manager September 2018
Finalize Design December 2018
Issue Bid Advertisement January 2019
Award Construction Contract April 2019
Begin Construction May 2019
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6
Current Schedule
11
Comparison of Provisions
12
Provision Current City
Contract
Modified City
Contract With Local
Hire Preference
PLA
1. Local Hire /
Targeted Worker
Participation
DBE Outreach,
Apprentice
Utilization
Local, At-Risk,
Veteran, Others (to
be determined by
City), Apprentices
Local, At-Risk,
Veteran, Others (to
be determined by
City), Apprentices
2. Hiring Procedures Subject to Contractor Discretion Union Referral, Core
Worker Limits
3. Wages and
Benefits
Prevailing Wage Prevailing Wage,
Fringes to Union
Trust (all contractors)
4. Management
Rights
No Restrictions No Restrictions
5. Work Stoppages No Contractual Language; No Ability to
Restrict
Prohibited
6. Dispute
Resolution
Partnering, Public Contract Code, Labor
Compliance
The Plan”
jurisdictional
issues),Arbitration
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Local Hire Preference Example
13
Local Hire - The Applicant shall make all efforts to employ local hire
permanent residents within San Luis Obispo County, including hiring
priority given to residents with County zip codes), with adequate
experience and qualifications, during construction and operations to the
extent possible. To this end, the Applicant shall work with the local unions
and local job fairs, as well as advertise widely in the San Luis Obispo
County media, to promote available positions. Within 60 days of project
approval, or such later time as approved by the County, the Applicant shall
create and mail a flyer to local residents within 3 miles of the project site
describing the types of union and non-union jobs, as well as contact
information on how to pursue employment of those jobs relating to
construction of the project.
From San Luis Obispo County SunPower Project:
Comparison of Provisions
14
Provision Current City
Contract
Modified City
Contract With Local
Hire Preference
PLA
1. Local Hire /
Targeted Worker
Participation
DBE Outreach,
Apprentice
Utilization
Local, At-Risk,
Veteran, Others (to
be determined by
City), Apprentices
Local, At-Risk,
Veteran, Others (to
be determined by
City), Apprentices
2. Hiring Procedures Subject to Contractor Discretion Union Referral, Core
Worker Limits
3. Wages and
Benefits
Prevailing Wage Prevailing Wage,
Fringes to Union
Trust (all contractors)
4. Management
Rights
No Restrictions No Restrictions
5. Work Stoppages No Contractual Language; No Ability to
Restrict
Prohibited
6. Dispute
Resolution
Partnering, Public Contract Code, Labor
Compliance
The Plan”
jurisdictional
issues),Arbitration
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8
Current City Contract Modified City Contract With
Local Hire Preference PLA
Benefits
No schedule impact • Local worker participation
goals established
No schedule impact
Broad discretion for other
workforce goals
Local worker participation
goals established
Work stoppages
prohibited
Costs
No additional cost • Local hire program
administration cost
Potential for increased
construction cost
Contract language
development cost
Negotiation costs
PLA administration costs
Potential for increased
construction cost
Risks
Potential for reduced
local worker
participation
Potential for work
stoppage
Potential for work
stoppage
Potential for prolonged
bid review & award
Potential delay to CM
procurement
Potential for reduced local
contractor participation
Potential construction
schedule delay
Potential Risks, Costs & Benefits
15
Negotiation Schedule
16
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Implementation Cost Estimate
17
Total LCP + PLA Cost: $294,000 - $450,000
118,000 -
173,000
176,000 -
277,000+
Questions for City Council Direction
Yes No
A. Is City Council Interested in Implementing a Local Hire Preference for
WRRF?
B. If yes, above, should Staff Pursue:
1. A Local Hire Preference Contract?
2. A PLA?
C. What are City Council’s Key Objectives?
1. Local worker participation?
2. Local contractor participation?
3. Other objectives?
D. If yes to B.2., what are City Council’s Key Considerations for PLA
Negotiation?
1. Project schedule?
2. QA/QC exemption?
3. Core worker limitations?
4. Equivalent benefits provisions?
5. Exemption for subcontractors with limited scope?
18
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10
slowrrfproject.org
Questions?
Potential Options for Council Direction
20
1. Direct staff to proceed with the negotiation of a PLA for inclusion with the bid
package for the WRRF, including local hiring preference components.
a. A PLA shall be negotiated by October 12, 2018 and incorporate the PLA
agreement and requirements into WRRF bid documents and return to the City
Council for approval.
b. If a PLA is not negotiated by October 12, 2018, direct staff to proceed with
incorporating local hire preference requirements into WRRF bid documents and
return to the City Council for approval.
c. Direct staff to pursue contract provisions to directly or indirectly control schedule,
cost, and quality.
2. Direct staff to include provisions for local outreach and/or incentives for local hire in
contract documents, consistent with applicable legal limitations into WRRF bid
documents using similar models for guidance, such as but not limited to the
Alameda model” into bid documents.
3. Direct staff to proceed with preparation of bid package without additional local
outreach of hire provisions into WRRF bid documents.
4. Direct staff to prepare a work program item to consider local hire or PLA
requirements for future public works projects as part of the 2019-2021 Financial
Plan.
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11
Comparison of Provisions
21
Provision Current City
Contract
Modified City
Contract With Local
Hire Preference
PLA
1. Local Hire /
Targeted Worker
Participation
DBE Outreach,
Apprentice
Utilization
Local, At-Risk,
Veteran, Others (to
be determined by
City), Apprentices
Local, At-Risk,
Veteran, Others (to
be determined by
City), Apprentices
2. Hiring Procedures Subject to Contractor Discretion Union Referral, Core
Worker Limits
3. Wages and
Benefits
Prevailing Wage Prevailing Wage,
Fringes to Union
Trust (all contractors)
4. Management
Rights
No Restrictions No Restrictions
5. Work Stoppages No Contractual Language; No Ability to
Restrict
Prohibited
6. Dispute
Resolution
Partnering, Public Contract Code, Labor
Compliance
The Plan”
jurisdictional
issues),Arbitration
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LOCAL BUSINESS ENTERPRISE
GOOD FAITH EFFORT
OUTREACH REQUIREMENTS
(WRRF UPGRADE PROJECT)
Specification No.: ____________
1. POLICY.
The City of San Luis Obispo’s Local Business Enterprise Outreach and Opportunities
Program (LBEP) is designed to maximize participation of diverse, qualified, local
contractors, consultants, and material suppliers seeking to do business on City of San Luis
Obispo projects. Effective implementation of LBEP is a requirement of the project and
award of a contract will be determined, in part, by the Contractor’s demonstrated good faith
efforts in conducting effective outreach to local contractors. Failure to comply with the
requirements herein shall render the bid as non-responsive.
2. DEFINITIONS.
(a) For the purposes of this program, a Local Business Enterprise (“LBE”) means a
business that is a firm or dealer with fixed offices located in and having a street address
within the County of San Luis Obispo and holds a valid business license issued by
either the County or a city within the County for at least six months prior to the date
upon which a request for sealed bids or proposals is issued.
(b) Vendor/Material Supplier: An individual, partnership, corporation or other legal entity
that provides equipment, materials or supplies under an executed contract.
(c) Written Communication: Any handwritten or typed correspondence delivered by e-
mail, fax, or U.S. mail.
(e) Outreach Forms:
(1) Schedule A-1, Designation of All Subcontractors/Vendors/Service Providers
(2) Schedule A-2, Subcontracting Opportunities and Contact Log
3. OUTREACH RESOURCES PROVIDED BY THE CITY.
(a) Outreach materials provided by the City shall be the primary source of outreach activity.
Contractors are encouraged to supplement but not replace the City provided materials.
City-provided outreach materials include:
(1) LBEP List: This list shall be used as the primary source for outreach activity
and consists of potential subcontractors and vendors/material suppliers specific to
the project.
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a. The bidder will use the LBEP List through the following website: [need
to create website based on RFQ].
b. For each category of work identified by the bidder as a subcontracting
opportunity in schedule A-2, the bidder will contact each LBE listed and
shall comply with the outreach requirements in Section 4 below.
4. OUTREACH ACTIVITY REQUIREMENTS AND EVIDENCE OF FULFILLMENT.
(a) The bidder shall conduct pre-bid outreach activities to provide equal opportunity to all
firms, including LBEs, to participate on the project. Outreach solicitations shall occur prior
to submission of the bid to be considered good faith outreach efforts. The following table
outlines the outreach activity requirements and evidence of fulfillment. Outreach activities
identified with an “M” on the left hand column are mandatory outreach efforts; outreach
activities identified with a “R” are strongly recommended, but are not mandatory:
Outreach Activity Requirements
Description
M Identify Work that can be Subcontracted.
Evidence of Fulfillment:
(i) Complete and submit Schedule A-2 by entering:
• A description of each item of work solicited from subcontractors;
• Estimated cost of work, materials or services;
• Percent of total fee; and
• Whether or not a subcontractor or vendor was selected, and the reason
for selection/non-selection.
M Notify firms on LBEP List of subcontracting opportunities for each category listed
on Schedule A-2.
• Notifications must occur no fewer than 14 calendar days prior to the bid
due date. One contact must be written (mail, email, or fax) and one contact
must be verbal (telephone or personal meeting).
• Notification shall name the City as project owner; identify work
available to subcontractors; bid due date; contact information including
but not limited to telephone number, e-mail and name of contact; and, all
available times and locations where plans, specifications and bid
documents can be viewed or copied.
Evidence of Fulfillment
(i) Provide copies of letter and written communication (including e-mail or fax) sent
to firms on the LBEP List. If other sources were identified by the bidder, provide
copies of letter and written communication (including email or fax) on those other
sources.
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(ii) Complete and submit Schedule A-2 to document contact with small contractors,
including:
• Name and title of each person contacted;
• Fax, e-mail, and phone number of the company;
• Whether the firm submitted a bid to the contractor, and
• If bid submitted to contractor, reason the firm was not selected to work
on the project.
M
The bidder negotiated in good faith with the LBEs and did not unjustifiably reject
as unsatisfactory bids prepared by any LBEs as determined by City.
Evidence of Fulfillment:
• Copies or list of all bids and a spreadsheet listing all bids with firm name,
contact person, bid items(s), bid price, LBE classification, and comments re-
selection or rejection
• LBE bids accepted and included in bid response
R
The bidder advertised, not less than ten (10) calendar days before the date the bids
are opened, in one or more local daily or weekly newspapers, trade association
publications, minority or trade-oriented publications, or trade journals for LBEs that
are interested in participating in the project.
Evidence of Fulfillment:
• Copy of advertisements, certified letters, successfully completed faxes
and/or other notices to LBEs with selected specific items identified.
R
The bidder followed up initial solicitations of interest by contacting the enterprises
to determine with certainty whether the enterprises were interested in performing
specific items of the project.
Evidence of Fulfillment:
• Copy of published advertisements, letters, successfully completed faxes, etc.
with LBE name/contact information including the required information or
directions on how to obtain it and the date the information was provided
• Agenda, meeting notes, etc. including specific topics discussed, LBE firm
names and contact persons in attendance that received information, and the
location and date information was provided
5. OUTREACH RESULTS: REPORTING REQUIREMENTS.
Upon completion of the outreach activity requirements and as requested by the City, bidders shall
submit the following items no later than the close of two business days after the bid opening.
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Within two (2) days of written request from the City, the two responsible bidders with the lowest
responsive bids must submit to the Project Manager the following:
Required Forms Included
Completed Schedule A-1.
Completed Schedule A-2
Letters of Intent to all Subcontractors
Evidence of Contact with LBEs on the LBEP List (examples: dated
e-mail, fax or letter).
Evidence of Fulfillment information described in Section 4 above.
6. SUBCONTRACTOR SUBSTITUTION.
(a) Written authorization from the City is required prior to substitution of any subcontractor.
Subcontractors may be substituted based on the criteria below:
(1) For any reason stated in California Public Contract Code Section 4107 which are
incorporated herein.
(2) For reasons, which the City in its judgment, deems to be in the best interests of
the City, except where prohibited by law.
7. AWARD OF AGREEMENT.
The Contractor’s good faith outreach efforts will be reviewed by the City’s Director of Utilities or
his/her designee, prior to the award of a contract, to determine whether good faith outreach efforts
requirements, if applicable, were met.
8. POST-AWARD MONITORING.
(a) To ensure compliance with Contractor stated commitments, the City will monitor
subcontracting activity throughout the duration of the contract. To comply with post-award
monitoring the bidder shall:
(1) Ensure that subcontractors and suppliers perform the type of work and the
quantity of work as specified in Schedule A-1.
(2) Provide the City with any additional reports, subcontracts, or other information
deemed necessary for determining Contractor’s compliance with its subcontracting
commitment.
(3) Maintain all reports and corresponding information for a period of no less than
three years after the completion of the project, or until such time a program audit
has been completed on the project by the City, whichever occurs first.
9. LBEP NONCOMPLIANCE.
(a) Failure by the Contractor to fulfill any of the Program guidelines constitutes breach of a
contractual obligation and may result in City-imposed sanctions on the Contractor. Upon
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determining that a Contractor is not in compliance with Program guidelines, the City may seek,
without limitations, the following remedies:
(1) Withholding progress payments until the City deems the Contractor to be in
compliance.
(2) Withholding an amount equal to the unmet portion of the amount contracted to
the subcontractor, vendor, or supplier in question.
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Meeting Date: 11/13/2018
FROM: Derek Johnson, City Manager,
Brigitte Elke, Finance Director
Prepared By: Alex Ferreira, Budget Manager
SUBJECT: SETTING THE STAGE: STATUS UPDATE FOR THE 2019-21 GOAL-
SETTING AND FINANCIAL PLAN PROCESS
RECOMMENDATION
1. Receive and discuss the following background information in preparation for the 2019-21
goal-setting and Financial Plan process:
a. Status of 2017-19 Major City Goals and Other Important Objectives
b. Fiscal Health Response Plan
c. General Plan Update
d. Strategic Scan; and
2. Confirm the date for the Goal Setting workshop on Thursday, February 7, 2019 at 5:00 pm.
REPORT IN BRIEF
The City of San Luis Obispo utilizes a two-year financial planning process to create its budgets.
This process includes extensive public outreach to assist the City Council in establishing Major
City Goals. The benefits of this process are two-fold, it ensures that resources are provided in the
budget to accomplish the community’s highest priority, most important objectives, and it is a
method to help create a mutual understanding among residents, decision makers, and City staff
about what can be achieved by working together.
To provide the setting for the goal setting process, this report includes an update our current
Major City Goals and Other Important Objectives, the status of the Fiscal Health Response Plan
adopted by Council April 17th, 2018, an update on the General Plan, and an overview of strategic
indicators.
Significant progress has been achieved regarding all Major City Goals. The Housing Major City
Goal is 73% complete, Multi-Modal Transportation is 70% complete, Climate Action is 70%
complete, Fiscal Sustainability & Responsibility is now 65% complete, and the Downtown
Vitality Other Important Objective is 75% complete.
This first year of the Fiscal Health Response Plan (FHRP) has been implemented. A total of $1.1
million in operating reductions and $0.4 million in revenue through doing business differently
have been realized. Employee concessions targeted at approximately $1.7 million over the three
years of the plan are also in process.
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This report also highlights the progress made on the General Plan. Of the 409 individual
implementation planning programs in the General Plan, 93% or 379 programs are completed or
have been integrated into the City’s ongoing operations. This is a seven percent increase since
the last update provided as part of the 2017-19 Financial Plan. Given the ambitious nature of the
General Plan and its twenty-year time horizon, staff believes that this represents significant
progress toward achieving the goals within the plan.
Lastly, the report includes a scan of strategic indicator. The scan was developed by two Cal Poly
interns in City Administration Department and provides an in-depth overview on important
statistical information pertaining to key social, economic, and environmental influences.
DISCUSSION
The fundamental purpose of the City’s budget process is to allocate financial resources to
support City services and capital projects to accomplish adopted goals over a two-year period.
This process is informed by the City’s current service levels and adopted long-term plans and
policies and assists the development of the two-year Financial Plan.
As an integral part of the Financial Plan development and its goal setting process, the Council
will hold a Community Forum on January 23, 2019, followed by the Council Goal-Setting
workshop on February 7, 2019, to engage the public in defining the desired work efforts and to
provide input as to the priorities for the community. The community can further contribute
through an online survey posted on the City’s website at www.slocity.org/opencityhall.
In order to provide background information and context for consideration during the goal setting
process, Council and the public will receive a series of reports which include updates on the
status of adopted plans, Major City Goals, capital projects as well as the region’s economic
outlook and the City’s financial policies. The December 4th City Council meeting will
concentrate on the City’s budget policies, the Capital Improvement Plan, and will provide an
economic outlook highlighting the trends for the upcoming five-year period. This report lays the
foundation for that discussion by providing a status update on the current Major City Goals and
Other Important Objective, an update to the adopted FHRP, and a status report on General Plan
implementation programs.
The General and Enterprise Funds’ five-year fiscal forecast will be presented to the Council on
February 5, 2019 alongside the 2018-19 Mid-Year Report and will be based on audited 2017-18
financial results. This will be the final piece in the series of reports as the five -year forecast is an
essential part in the development of a reliable and accurate long-term outlook and sustainable
financial plan to be presented to the Council on June 4, 2019.
Status of 2017-19 Major City Goals and Other Important Objective
Housing: This goal aims to facilitate increased production of all housing types designed to be
economically accessible to the area workforce and low and very low-income residents, through
increased density and proximity to transportation corridors in alignment with the City’s Climate
Action Plan. This goal is 73% complete.
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Multi-Modal Transportation: This goal prioritizes the implementation of the Bicycle Master
Plan, pedestrian safety, and the Short-Range Transit Plan. This goal is 70% complete.
Climate Action: This goal focuses work efforts to update the City’s Climate Action Plan,
assesses requirements to achieve a “net-zero carbon City” target, and implements cost-effective
measures, including implementation of a Sustainability Coordinator and the formation of a Green
Team. This goal is 70% complete.
Fiscal Sustainability and Responsibility: This goal implements the City’s Fiscal Responsibility
Philosophy with a focus on economic development and responsiveness, reduction of unfunded
liabilities, and infrastructure financing. This goal is 65% complete.
Other Important Objective:
Downtown Vitality: This goal focuses work efforts to continue to improve safety, infrastructure
investment, and maintenance in the Downtown and support Downtown Association’s proposal to
consider a Downtown improvement district. This objective is 75% complete.
Attachment A - Status of the City’s Major City Goals and Other Important Objectives for 2017-
19 - further details progress on all efforts and work programs related to the individual goals as of
October 1, 2018.
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Fiscal Health Response Plan Status
With the development of the 2017-19 Financial Plan, Council adopted the Fiscal Sustainability
and Responsibility Major City Goal with a work program to address long-term fiscal health. At
its December 12, 2017 meeting, Council received a report titled “Budget Foundation: Fiscal
Health Response Plan” which articulated the need to reduce ongoing expenditures by $8.9
million in all funds by 2020-21 ($7.5 million in General Fund and $1.4 million from the
Enterprise funds).
The reduction is necessary to address the long-term financial impacts1 related to pension costs
due to significant policy changes made by the California Public Employees’ Retirement System
(CalPERS) affecting the unfunded liabilities of all PERS member organizations. On April 17,
2018, the Council adopted the City’s FHRP (Attachment B) to establish a roadmap to long-term
fiscal health and sustainability that will be accomplished over a period of three years from 2018 -
19 through 2020-21.
With the adoption of the General Fund portion of the 2018-19 Supplemental Budget, City staff
identified a total of $1.1 million in operating reductions and $0.4 million in revenue through
doing business differently. Those actions reduce the General Fund obligation for years two and
three of the Plan to $6 million as outlined in the table below. Considering revenue estimates from
a cannabis tax amounting to $3 million, doing business differently, and negotiated employee
concessions targeted at $1.7 million over the three years of the plan, $1,356,000 is still needed
from operating expenditure savings. Of that amount, $902,000 was identified by departments as
future year reductions, leaving $454,000 still to be identified as part of the 2019-21 Financial
Plan development effort. Those reductions, along with the previously identified $902,000, will
be presented to Council as part of strategic budget direction on April 16, 2019.
1 Assuming all actuarial assumptions remain relatively constant.
Identified: $0.4M
4 of 5 Negotiations Complete
Identified: $1.1M
Total: $7.5M
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General Fund – FHRP Status
Year 1 Year 2 Year 3
Plan Plan Plan Total
FHRP Est. Reduction/New Revenue 1,500 2,000 4,000 7,500
Revenue
New Business License 150 150
Code Enforcement 50 50
New Ways of Doing Business 20 20
TOT (Air BnB & homestays)50 50
Cannabis Tax 100 1,200 1,500 2,800
Total Revenue 370 1,200 1,500 3,070
Expenditures
Concessions 1,700 1,700
Bond Refinancing 83 271 354
CalPers Prepayment 323 323
Department Operating Reductions 696 238 664 1,599
Total Expenditure 1,102 509 2,364 3,976
Total 1,472 1,709 3,864 7,046
FHRP Plan 1,500 2,000 4,000 7,500
Budgeted 1,472 1,709 3,864 7,046
Savings Still needed (oversavings)28 291 136 454
The City’s four Enterprise funds will be responsible for their individual portion of the FHRP,
reducing expenses by $1.4 million over the three years of the plan. All four funds have also
developed a three-year approach which will be presented with their respective 2019-21 Financial
Plan presentations.
Status of General Plan Implementation Programs
Why Report on the Status of General Plan Programs?
The City’s General Plan is composed of a “building block” hierarchy of goals, objectives,
policies and programs. Goals and objectives are direction-setters that describe desirable
conditions and preferred outcomes as they are applied to specific situations. Policies are typically
more specific statements that guide decision-making while the defined programs are actions that
implement goals, objectives and policies. As such, monitoring the City’s progress in
implementing General Plan programs is an excellent way of monitoring its progress in achieving
General Plan goals and objectives which is the focus of the plan document.
Attachment C provides a summary of the status of all General Plan Implementation programs by
element as well as key “area” plans including: The Downtown Concept plan, Mid-Higuera, and
the Railroad Historic District. Another part of the report addresses action items and work efforts
related to the Airport and Margarita Areas, and the Orcutt Area Specific Plan. New in this year’s
update is the integration of the City’s Climate Action Plan and its related efforts.
As discussed in greater detail in the report, of the 409 individual implementation planning
programs in the General Plan, 93% or 379 programs are completed or have been integrated into
the City’s ongoing operations. This is a seven percent increase since the last update provided as
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Status of General Plan Implementation
Programs
Complete or Ongoing 93%
High Difficulty 1%
Medium Difficulty 4%
Low Difficulty 2%
part of the 2017-19 Financial Plan. Given the ambitious nature of the General Plan and its
twenty-year time horizon, staff believes that this represents significant progress toward achieving
the goals within the plan.
Programs not yet completed (7% of the total) are classified in the following categories:
1. 2% or 8 projects as relatively easy to achieve from a resource perspective
2. 4% or 16 projects as moderately difficult to achieve due to the significant resources needed
to staff (up to 500 hours) or fund (up to $25,000) the work and implementation through
completion.
3. 1% or 6 projects as difficult to achieve due to the major resources needed to staff (more than
500 hours) or fund (more than $25,000) the work and implementation through completion.
Climate Action Plan
The 2017-19 Climate Action Major City goal focused on building capacity and updating the
Climate Action Plan (CAP). The City expects to adopt the updated CAP in Fall 2019. The
updated Climate Action Plan will set a trajectory to carbon neutrality by 2035 and will include
wide ranging implementation strategies. In FY 2019, staff expects to begin implementing the
CAP and planning for community resilience in adapting to the impacts of climate change.
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Strategic Scan
This is a new addition to budget process and was developed by two Cal Poly interns in City
Administration Department with consultation from the Leadership team. The scan provides an
in-depth overview of important statistical information pertaining to social, economic, and
environmental factors. It addresses issues pertinent to the delivery of City services and provides
important context for decision making through the budget process. It should be noted that the
scan is not exhaustive of all data important to the City but is intended to be illustrative of
strategic indicators for consideration and discussion. The complete presentation is provided as
Attachment D. to this report.
Goal Setting Workshop – Thursday, February 7, 2019
Traditionally, the Council’s goals setting workshop was an all-day Saturday session in the City-
County library. On October 2, 2018, the Council reviewed the Financial Plan schedule and
directed staff to consider moving this session to a weekday evening special meeting. Staff is
recommending moving the session from February 9, to February 7, 2019, at 5:00 pm.
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ENTERPRISE FUNDS
WATER FUND
Status update:
Water Rate Structure and Rate Implementation - The water rate structure and rates adopted
by City Council on June 19, 2018 were implemented. Implementation of this change was a
complicated undertaking for the Utility Billing team as it worked with the City’s software
provider to ensure the new billing system accurately calculated bills and explained changes to
customers.
Water Treatment Plant Energy Efficiency Project - Phase 3 of the Water Plant Energy
Efficiency Project is making significant progress. This project has the potential to significantly
reduce energy use by addressing aged and inefficient equipment and construct a hydroelectric
generation and photovoltaic systems. An investment grade audit (IGA) to identify rebates,
incentives, energy saving projects, project costs and payback, is currently underway. The IGA is
expected to be complete April 2019.
Pipeline Replacement - Currently underway is a $3 million pipeline replacement project that
replaces approximately 5,000 feet of aged waterlines on Pacific, Boysen, Chorro, and Sierra
streets. Additional waterline replacements are planned for Casa, Stenner, Murray and the
intersections of Chorro/Meinecke and Chorro/Murray.
Groundwater Sustainability Agency - The City worked with the County of San Luis Obispo
and other stakeholders to form a Groundwater Sustainability Agency (GSA). The GSA is
working together to develop a Groundwater Sustainability Plan (GSP)for the San Luis Obispo
Valley groundwater basin. The goal of the GSP is the long-term health of the local groundwater
resources.
What lies ahead
The Water Fund’s portion of the Fiscal Health Response Plan is $540,000 over the next three
years. Water revenues received from rates and/or fees for service and increases to rates and fees
will not be used to close the budget gap. For fiscal year 2018-19, increased revenues, attributable
to an increase in consumption, and decreased expenses will provide $200,000 toward meeting
the target. Additionally, Council adopted the required funding to install new water meters
capable of accurately recording flow at the low-flow rates typically associated with high -
efficiency plumbing fixtures. An exact assessment of revenues attributable to meter replacement
and associated increased accuracy will be determined at the end of FY19.
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SEWER FUND
Status update
Water Resource Recovery Facility (WRRF) Upgrade project - Phase 3 of the WRRF upgrade
is currently underway. The main driver for the project is to meet regulatory discharge
requirements, address aged equipment, and provide a community asset. The WRRF Project has
achieved the 95% design project milestone. Additionally, the City will receive a State Revolving
Fund (SRF) loan in an amount up to $140 million, at an interest rate that is half the State’s
General Obligation Bond interest rate and was recently approved to receive $4 million of
principal forgiveness from Green Project Reserve funding.
Margarita Lift Station - The Margarita Lift station was originally installed in 1971 and needs
replacement. Construction is currently underway and 60% complete. This project is expected to
be completed by December 2018.
Sewer Lining Project - This project will rehabilitate 4,350 of existing sewer pipe in five
different locations proximate to Chorro and Benton streets. The project is currently out to bid.
Construction is scheduled to begin in the first quarter and expected to be completed in the second
quarter of 2019.
What lies ahead
The Sewer Fund’s portion of the Fiscal Health Response Plan is $542,000 over the next three
years. For fiscal year 2018-19, increased revenues and decreased expenses will provide $100,000
toward meeting the target. $80,000 of the operating expense reduction is attributable to energy
and process control changes. $20,000 in increased revenues is attributable to more accurate fee
collection due to the water meter change out program. Assessment of revenues attributable to
meter accuracy will be determined at the end of FY19.
PARKING FUND
Status update:
Implementation of License Plate Recognition (LPR) - This software is primarily used to assist
parking enforcement in monitoring time limits in the downtown and other time limited parking
areas throughout the City. The LPR reduces the time required to “chalk” vehicles, and
documents the vehicle plate, location, and time for citation adjudication and contesting.
Therefore, existing staff increase their efficiency and range of coverage throughout the City.
The LPR system can also help with occupancy data collection to update the City’s KH Park +
modeling software. The LPR and KH Park systems are both intended to provide vastly improved
parking utilization data.
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Structural Assessment and Maintenance Report for Parking Structures – This project
completed a detailed structural analysis of each of the existing parking structures and identified
and prioritized maintenance and repairs necessary. This was approved by Council in the 17-19
Budget and enables the Parking Fund to prioritize the capital investments which will extend the
useful life of these major assets.
Installation of the Parking Access and Revenue Control System (PARCS) – This is a
complete replacement of the equipment and software at each of the public parking structures.
The prior system was 20+ years old and required attendants to accept either cash or credit
payments. Outside of attendants’ hours2, the gates remained raised, resulting in a significant loss
of revenue and cost disparity between daytime and nighttime users. The new system is fully
automated and will allow customers to enter and exit 24/7. In addition, multiple payment
options, including pay-on-foot machines (POF) at each location, will significantly facilitate the
exiting process. The attendants can expand their role to assist customers by also patrolling the
structures to provide customer assistance and serve as ambassadors for the City. The new system
will also provide accurate real-time occupancy data which can be viewed on the City website.
The goal is to eventually provide a mobile platform to provide drivers with parking information
before reaching the structures, thus reducing the need to drive around looking for a parking
space.
What lies ahead
Fiscal Health Response Plan - The Parking Funds portion of the Fiscal Health Response Plan is
$175,000 over the next three years. For fiscal year 2018-19, increased revenues and decreased
expenses will meet the target. $10,000 of the operating expense reduction is obtainable in the
landscaping budget, and over $165,000 in increased revenues is attributable to parking rate
increases approved by Council (July 2017) that were effective January 1, 2018.
Palm Nipomo Structure – The process of getting the final design contract is moving forward
but will not likely be completed for at least another year.
EV Charging Stations – Parking Services is continuing to work with PG&E to complete the
installation of the EV charging stations in both the Marsh Street and 919 Palm Parking
Structures. This will dramatically increase the capacity of charging stations available to both
public and the City’s fleet vehicles.
TRANSIT FUND
Status update:
Phase 1 Implementation of SRTP - City Council adopted the 2017-22 Short Range Transit Plan
in August of 2016. Phase 1 and major components of the recommended changes were enacted in
June 2017. As a direct result, many of the goals and assumptions of the Plan have come to
fruition. These include improved on-time performance/reliability ( 97% as of last analysis), new
service to the regional airport, eleven new bus stops, expanded service hours on weekdays and
2 8:00 a.m.-10:00 p.m.
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weekends, reduction in complaints and system inquiries because of improved ease-of-use (e.g.
“where is the bus” or “how can I use the bus”), growth in use with middle and high school
students and reduced costs (diesel fuel use reduced by 13.5%, or 13,690 gallons) Further, these
changes will improve the transit systems scalability as service needs continue to change in the
future.
Awards & Recognitions - The major undertakings of overhauling the aging transit system has
been acknowledged, so far, with three industry awards. The American Public Works
Association’s Central Coast Chapter has awarded SLO Transit its 2017 Project of the Year
Award. Metro Magazine has awarded SLO Transit its 2018 Innovation Award. And the
California Association for Coordinated Transportation (CalACT) has awarded SLO Transit its
2018 Outstanding Transportation Agency Award.
What lies ahead
Fiscal Health Response Plan - The Transit Funds portion of the Fiscal Health Response Plan is
$42,500 over the next three years. For fiscal year 2018-19, increased revenues and decreased
expenses (e.g. fuel) will help ensure that the Transit fund can meet the target without impacts to
the services.
Service & Fleet Expansion - SLO Transit experienced an anticipated and temporary reduction
in ridership during FY 2017/18, directly tied to fare increase and service changes. Early figures
in FY 2018/19 shows an increase in ridership both among university students and the general
population. While ridership increases are desirable, SLO Transit will need to identify and
secure funding sources/strategies to expand service and the fleet in order to meet increasing
service demands.
Zero Emission Vehicles - Adding to the challenge of needed fleet expansion is the need to
procure zero emission vehicles, currently at almost the double the initial cost of a diesel fuel
vehicle. Further, the program will need to modify its current transit operations & maintenance
facility in order to accommodate zero emission vehicle charging.
Stake Holder Funding - Funding for public transit services, while having seen some
improvements is still largely driven by outside stake-holders and factors (e.g. Federal, State
Government, CalPoly University, SLOCOG and RTA). The Transit Enterprise Fund will need to
continually work with these partners to help ensure adequate financial support.
CONCURRRENCES
The City’s internal Financial Plan Steering Committee concur with the recommendations
included in this report.
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FISCAL IMPACT
There is no direct fiscal impact as a result of reviewing the status update accompanying this
Council Agenda Report. This report aims at providing context for the upcoming goals setting
process for the 2019-21 Financial Plan.
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. 15060
Attachments:
a - MCG and OIO Update
b - Fiscal Health Response Plan
c - Status of General Plan Implementation Programs
d-Strategic Scan 2018
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UPDATE: Major City Goals and Other Important Objectives
The fundamental purpose of
the City’s Financial Plan is to
link what the City wants to
accomplish over its two-year
period with the resources
available to do so. The
Financial Plan process used
by the City Council
accomplishes this through a
public engagement process that helps the Council identify Major City Goals, establishing a
timeframe and organizational responsibility for achieving them, and allocating the resources
needed to do so.
In order to identify the goals to drive the budget process, the City begins its Financial Plan process
by asking its advisory bodies to submit goals, soliciting feedback from the public with a survey,
and holding a community forum, in addition to other outreach efforts. This input helps the Council
determine the major objectives it wants to accomplish over the next two years in addition to the
ongoing services the City provides to the community. At the Goal-Setting Workshop in January
2017, Council established four Major City Goals and one Other Important Council Objective, listed
below. The proposed work programs and funding to accomplish the Major City Goals and Other
Important Objective are presented in this section. The purpose of this summary is to provide an
estimate of progress as of October 1, 2018.
2017-19 MCG ACTION HIGHLIGHTS 2018
Housing 73% Complete
Facilitate increased production of all housing types designed to be economically accessible to the
area workforce and low and very low-income residents, through increased density and proximity
to transportation corridors in alignment with the Climate Action Plan.
As of September 30, 2018, the Affordable Housing Fund has a balance of approximately $1.5 million. The City
continued to implement the Inclusionary Housing Requirement throughout 2018 and has over 8 Affordability
Agreements in process through long-term and equity-share programs. Pursuant to the recently adopted Zoning
Regulations, workforce housing is now incorporated as an income category. Staff has begun preliminary
development of a scope of work for the required update of the City’s Housing Element, which will include an
Major City Goals (MCG)
•Housing
•Multi-Modal Transportation
•Climate Action
•Fiscal Sustainability &
Responsibility
Other Important Objectives
(OIO)
•Downtown Vitality
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affordable housing nexus study and a workforce housing program. This Update will be completed in conjunction
with the upcoming 6th cycle Regional Housing Needs Allocation (RHNA) for San Luis Obispo County. It is
anticipated the completion of this work effort by December 2020.
Multi-Modal Transportation 70% Complete
Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the Short-Range
Transit Plan.
In October staff completed the first designated ‘Complete Streets’ project on Laurel Lane. This project was a top
priority in the 2016 Traffic Safety Report, noting the need to improve pedestrian safety along this corridor with
connections to schools, parks, trails and key recreational facilities. The improvements included safety
improvements for all users, vehicles, bicycles, pedestrians, and transit riders.
Several critical projects were advanced and/or completed thus far in 2018, including: The Calle Joaquin Park and
Ride lot opened for service in February 2018. This is the first Park and Ride lot in the City. The City is now
working with ReCarGo, the California Energy Commission vendor for the US 101 corridor, to implement EV
charging stations in a portion of the lot.
Traffic safety projects continue to be implemented. The signal upgrade at Monterey/Osos is complete and trip
hazard created by the street tree’s impact on the sidewalk at 1005 Monterey Street has been repaired. The Annual
Traffic Safety Report for calendar year 2016 was presented to Council on February 6, 2018 and reported injury
collisions in 2016 were the second lowest in the 16 years of the program. Overall reported collisions were the
lowest ever recorded in the program’s history.
The Anholm Bikeway Plan received final approval by Council on September 4, 2018, including amendments to
identify specific recommendations for the challenging “middle segment” between Lincoln and Ramona. Design
of Phase 1 of the project is well underway, and construction of the first Phase 1 improvements are anticipated to
begin 1st Quarter of 2019. Right of Way negotiations with the LDS Church are underway.
The Caltrans Project Study Report (PSR) for the Prado Road Interchange was approved in April 2018. The next
stage of Caltrans processing – environmental and final project approval- will now commence.
Currently staff is working on critical grant funded projects such as the Railroad Safety Trail – Taft to Pepper, Mid
Higuera Widening, the Prado Road Bridge and Santa Fe Bridge replacement projects and the Tank Farm/Orcutt
Road Roundabout. Some projects, such as minor NTM projects were delayed in order to meet deadlines and not
endanger grant funding.
SLO Transit has continued to adjust services based upon input from riders and community members. To date,
SLO Transit has implemented almost 80% of the road network changes recommended in the City’s 2017-22 Short
Range Transit Plan within its first year of the plan’s adoption. Service intensity will come as additional funding
sources materialize. In conjunction with service changes, SLO Transit has replaced eight old bus shelters that
had reached the end of their “useful life” and installed four new bus shelters at stops meeting thresholds using
state awarded PTMISEA funds. SLO Transit has won three awards since implementing the SRTP. SLO Transit
was recognized as Outstanding Transportation Agency by the California Association of Coordinated Transit. The
award recognized the City’s update and modernization of services and its fleet. The American Public Works
Association (APWA) also recognized this project as a Project of The Year for 2017-18. And, METRO Magazine
award SLO Transit it’s 2018 Innovation Award.
Climate Action 70% Complete
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Implement Climate Action Plan, assess requirements to achieve a “net-zero carbon City” target,
and implement cost-effective measures, including implementation of a Sustainability
Coordinator and formation of a Green Team.
The City hired a Sustainability Manager, effective March 8, 2018. Since being hired, the
Sustainability Manager has held Green Team meetings and supporting the Climate Coalition Task
Force as staff liaison. Staff has been working on the updated climate action plan, which will include
a pathway to the carbon neutral by 2035 target. Due to the more aggressive target, staff expects
the plan to be completed in Fall 2019.
Staff has worked to create sustainability incentive programs through support of the development
of a green business program for local businesses, the SLO Green Challenge website for residents,
and by working in collaboration with regional partners.
In April 2018, staff received a biennial facility energy benchmarking report and is pursuing energy
efficiency lighting audits and retrofits. As of September 2018, Council provided approval to staff
to negotiate on-bill financing for lighting retrofits through the agency. Staff is also pursuing the
siting of upwards of 1MW solar on City facilities. In addition, Utilities received approval from the
City Council in April of 2018 to complete investment grade audits for energy efficiency projects.
In Spring 2018, staff began participating in two electric vehicle charging programs, which could
bring over 40 electric vehicles chargers to the City for public and fleet uses. These programs would
be funded through licensing fees or utility program incentives.
In April of 2018, the City received confirmation from the City of Morro Bay of intent to participate
in the Community Choice Energy (CCE) program. In May of 2018, City Council approved release
of a request-for-proposals (RFP) for technical energy services for the purpose of developing and
operating a CCE program. As of September 2018, the cities of Morro Bay and San Luis Obispo
adopted CCE ordinances and created a new JPA (Central Coast Community Energy) for the
purpose of hosting the CCE program. In October of 2018, the California Public Utilities
Commission adopted a new method for calculating certain fees associated with CCE programs,
which is causing staff to reassess the preferred approach to a local program.
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Fiscal Sustainability & Responsibility 65% Complete
Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic
development and responsiveness, unfunded liabilities, and infrastructure financing.
A Fiscal Health Response Plan has been developed to address identified $8.9 million structural budget gap due
to significant increases in pension costs to pay down unfunded liabilities and was adopted by the City Council on
April 17, 2018. With the adoption of the General Fund portion of the 2018-19 Supplemental Budget, City staff
identified a total of $1.1 million in operating reductions and $0.4 million in revenue through doing business
differently. Those actions reduce the General Fund obligation for years two and three of the Plan to $6 million as
outlined in the table below.
Over the past six months, the City has negotiated successor Memorandum of Agreements (MOAs) that include
three-year terms with the San Luis Obispo Police Officers’ Association, the International Association of
Firefighters, Local 3523, and Unrepresented Management and Confidential groups. These successor MOAs
include modest cost of living increases and employees paying more towards their retirement. The City will save
approximately $996,000 by year 2020-21 because of the agreements. The City is actively negotiating with the
largest employee group, the San Luis Obispo City Employees’ Association as their contract expired June 30, 2018
and will also be negotiating with San Luis Obispo Police Staff Officers’ Association ahead of their contract
expiring in June 30, 2019.
Considering revenue estimates from a cannabis tax amounting to $3 million, doing business differently, and
negotiated employee concessions targeted at $1.7 million over the three years of the plan, $1,356,000 is still
needed from operating expenditure savings. Of that amount, $902,000 was identified by departments as year two
and three reductions, leaving an additional $454,000 to be identified as part of the 2019-21 Financial Plan budget
development effort. Those reductions, along with the previously identified $902,000, will be presented to Council
as part of strategic budget direction on April 16, 2019.
Staff also conducted a 10-year review of the General Fund’s capital improvement needs. The project list identified
the cost of maintaining existing assets, enhancing existing assets, or building new projects. It was determined
through Measure G, there is sufficient funding to maintain existing assets, but not necessarily to enhance existing
ones. Initial findings were presented to Council on January 16, 2018 and staff conducted additional project
analysis based on Council direction. This review resulted in a “Funding the Future of SLO” initiative, with 20
years of capital projects that fulfill the City’s vision as articulated in various planning documents. In addition,
staff completed an initial public engagement process and statistical survey. Council reviewed this information on
April 17, 2018. Council provided direction for additional public engagement and project review to be included in
the 19-21 Financial Plan. In addition, in advance of the 19-21 Financial Plan staff will provide Council with
proposals for early implementation of public engagement.
The City continues to address closure of the Diablo Canyon and prepare for the impacts to the region due to
significant loss of jobs and property tax value. In September, Governor Brown signed SB 1090 which approved
$85 million in mitigation funding including $1.82 million for economic development efforts for the City. Staff is
currently developing financial policies that will be included in the Financial Plan to guide the allocation of the
funds.
2017-19 OTHER IMPORTANT OBJECTIVES ACTION HIGHLIGHTS 2018
Downtown Vitality 75% Complete
Continue to improve safety, infrastructure investment, and maintenance in the Downtown and
support Downtown Association’s proposal to consider a Downtown improvement district.
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Maintenance work continues in the downtown core which includes tree maintenance, sidewalk
scrubbing, and street sweeping. In January through June 2019, additional tree pruning and tree
replacements, include any necessary infrastructure replacements, will occur in 26 locations.
Replacement of the Marsh Street Bridge design work continues and is scheduled to start
construction in Spring of 2019. The next Downtown Renewal Project located in the 800 block of
Higuera Street is delayed and anticipated to start construction in Winter 2020.
Planning work for the Downtown Concept Plan and Mission Plaza Concept Plan is complete.
Implementation of portions of the Mission Plaza Concept Plan began in summer of 2018.
Per the 2017 Point In Time Count, the total number of homeless individuals in San Luis Obispo
went down 15%, however, calls for service involving the homeless went up 13%. Homeless calls
for service accounted for 30% of all calls for service in the downtown. Policing the downtown
requires a considerable amount of time from law enforcement. Calls for service downtown
accounted for 15% of all calls for service in the City of San Luis Obispo. The Community Action
Team and Bicycle Team (when not pulled for patrol) continue to maintain public safety by
focusing efforts in addressing chronic offenders and evening patrols within the
downtown. Continued coordination with the Downtown Association to provide safety at Farmers
Market and to educate the community on homelessness issues is underway. Additionally, the
Police Department has sent two of its personnel through a certification program in Crime
Prevention Through Environmental Design (CPTED). Police Department Staff is working closely
with Community Development, Public Works, and Parks staff to address issues from an
environmental perspective in the Mission and in other areas that attract homeless individuals in
the downtown.
The Police Department coordinated with the County of San Luis Obispo to expand mental Health
Services. The County has awarded a contract to Transitions Mental Health Association for services
and a Memorandum of Understanding has been signed between the City and Transitions Mental
Health Association to help address transient mental health needs. In April 2018 the Police
Department designated one of the sergeant positions as the Downtown sergeant and will focus
on addressing the needs and crimes within the City’s downtown.
In addition, the City worked with Downtown SLO to hire a consultant to analyze and present
recommendations for a property-based business improvement district. Initial recommendations
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were presented to Downtown SLO and key stakeholders in March 2018. It was determined that
the continued refinement and outreach should take place over the next year before moving
forward.
NEXT REVIEW The next review of the 2017-19 Major City Goals and Other Important Objectives will occur
at midway through 2018-19. Individual items requiring policy direction and/or Council approval will continue
to be brought to Council for consideration and direction.
TASK AND STATUS REPORTS
Housing: 2017-19 Action Plan
Objective: Facilitate increased production of all housing types designed to be economically
accessible to the area workforce and low and very low-income residents, through increased
density and proximity to transportation corridors in alignment with the Climate Action Plan.
# Task Completion
Date Revised Status
1 Update of City Zoning Regulations to comply
with the Land Use Element. Complete
The Zoning Regulations Update began in
May 2017 and was introduced to Council in
in August 2018 and adopted in September
2018.
2 Affordable Housing Nexus Study 6/2020
The Affordable Housing Nexus Study was
initially delayed to complete the Capital
Facilities Fee Program Nexus Study, which
was adopted by Council in April 2018. Staff
will be preparing a Request for Proposals
(RFP) for the Affordable Housing Nexus
Study as part of the Housing Element Update.
3
HE 2.16: Evaluate and consider including a
workforce level of affordability to increase
housing options for those making between
121-160% of the Area Median Income.
3/2020
An Administrative Draft Workforce Housing
Program will be available for community and
stakeholder review in Spring 2020.
4
HE 4.6: Consider amending the City’s
Inclusionary Housing Ordinance and
Affordable Housing Incentives to require that
affordable units in a development be of
similar number of bedrooms, character and
basic quality as the non-restricted units in
locations that avoid segregation of such
units.
3/2020
An Administrative Draft Workforce Housing
Program will be available for community and
stakeholder review in Spring 2020.
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5
HE 6.12, 6.13 & 6.27 & LUE 4.0.28: Continue
to develop incentives to encourage
additional housing in the Downtown Core (C-
D Zone), including alternatives to calculating
residential density, to encourage the
development of smaller efficiency units.
Complete
This was included in the Zoning Regulations
Update, but may require further amendment
following the results of the Affordable
Housing Nexus Study.
6
HE 6.15: Consider General Plan amendments
to re-zone commercial, manufacturing or
public facility zoned areas for higher density,
infill or mixed-use housing where land
development patterns are suitable and
impact to Low-Density Residential areas is
minimal.
12/2020
An updated list of applicable properties will
be developed in accordance with the Housing
Element Update.
7
HE 6.28: Evaluate how lot patterns (i.e. size,
shape, slope) in the City’s multi-family
zones affect the City’s ability to meet
housing production policies. If warranted,
consider setting a minimum number of
dwellings on each legal lot in the R-2, R-3
and R-4 zones, regardless of lot size, when
other property development standards, such
as parking, height limits and setbacks can be
met.
3/2019
A list of applicable properties was identified
and inventoried. They will be evaluated
further following the completion of the
Subdivision Regulations Update. Any eligible
properties will be identified as part of the
Housing Element Update.
8
HE 6.30: Eliminate the one-acre minimum lot
area for PD overlay zoning, and identify
incentives to conventional subdivision
design.
3/2019
A list of applicable properties was identified
and inventoried. They will be evaluated
further following the completion of the
Subdivision Regulations Update. Any eligible
properties will be identified as part of the
Housing Element Update.
9
HE 6.31: Consider scaling development
impact fees for residential development
based on size, number of bedrooms, and
room counts.
Complete
The transportation component of the Capital
Facilities Fee Program and the Water and
Wastewater Development Impact Fee
Program include tiered impact fees based on
unit size and type (e.g., single family vs.
multifamily). Additional tiering may be
recommended as a result of the Affordable
Housing Nexus Study.
10
HE 9.12 & LUE 3.5.7.1: Consider incentivizing
dwelling units to a minimum size of 150
square feet, consistent with the California
Building Code, by reduced impact fees and
property development standards.
Ongoing
The Zoning Regulations Update included
standards to allow tiny homes up to 400
square feet on all properties where a single
family dwelling exists. The recently adopted
Capital Facilities Fee Program and Water and
Wastewater Development Impact Fee
Program include tiered development impact
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fees to incentivize the development of smaller
residential units. Additional tiering or other
incentives will be evaluated in the Affordable
Housing Nexus Study. Implementation will
be considered in the update of the Housing
Element.
11
Continue to prioritize streamlining and
expediting projects that facilitate increased
production of all housing types that are
economically accessible to the area
workforce, low, and very low income
residents.
Ongoing
Ongoing work effort, and a formal
streamlining process or program may be
implemented through the adoption of a
Workforce Housing Program.
12 Continue to implement Housing Element
programs and housing production goals. Ongoing
Ongoing work effort, which is supported by
the recent adoption of the Capital Facilities
Fee Program and the Water and Wastewater
Development Impact Fee Program, and the
Accessory Dwelling Unit Ordinance. This
work effort will continue to be supported
through the updated Zoning Regulations , the
Subdivision Regulations Update, the
Workforce Housing Program, and the
Housing Element Update.
13 Provide timely building permit review and
inspections for new housing developments. Ongoing
Ongoing work effort, the Community
Development Department is continuously
looking for ways to improve and expedite the
building permit review and inspection process
for new housing development. The
implementation of E-Plan check should
improve efficiency and reduce cost to
developers.
14
Support employer/employee and
employer/developer financing programs and
partnerships to increase housing
opportunities specifically targeted towards
the local workforce.
Ongoing
Ongoing work effort. Staff continues to
support employers and developers whom are
interested in partnerships to develop housing
projects that would be targeted towards
producing housing specifically for the local
workforce.
15
Continue the City’s participation with the
Workforce Housing Coalition, San Luis
Obispo County Housing Trust Fund to
identify, evaluate, and implement strategies
to increase the production of housing.
Ongoing
Ongoing work effort. City Staff participate
and attend the meetings of the Workforce
Housing Coalition and serve as a voting
member of the San Luis Obispo County
Housing Trust Fund Loan Commission in an
effort to identify opportunities for
collaboration to achieve common goals and
objectives associated with the continued
development of housing in the City.
16
CAP TLU 8.1: Improve the City’s jobs-
housing balance to reduce VMT from
commuting.
Ongoing
Ongoing work effort. The City is
continuously looking for opportunities to
support and facilitate the production of
housing, especially transit-oriented
development and infill development near
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employment, shopping and recreation centers.
Both the Avila and San Luis Ranch projects
include DA provisions which prioritize local
workers to enable them to live closer to their
jobs.
17
HE 2.17: Continue to consider increasing
residential densities above state density
bonus allowances for projects that provide
housing for low, very low and extremely low-
income households.
Ongoing
Ongoing work effort. Incentives that increase
residential densities above state density
bonuses for projects that provide targeted
housing for low, very low and extremely low-
income households are encouraged and are
evaluated on a project by project basis. The
completion of the Affordable Housing Nexus
Study may provide the City with some
additional tools to further support this
ongoing work effort.
18
HE 3.10: Continue to encourage the creation
of dwellings in the Downtown Core (CD
Zone) and the Downtown Planning Area by
continuing the no net loss program.
Ongoing
Ongoing work effort. The adopted Downtown
Concept Plan and the updated Zoning
Regulations encourage and/or provide for the
continued creation of residential dwelling
units in the newly adopted Downtown
Overlay Zone (D Zone).
19
HE 5.5: Review new developments for
compliance with City regulations and revise
projects or establish conditions of approval
as needed to implement housing variety and
tenure policies.
Ongoing
Ongoing work effort. New Development
projects are reviewed for compliance with all
applicable City regulations and developers
are encouraged to provide projects that will
result in a wide variety of housing types for
all income levels.
20
HE 6.14: Specific plans for any new expansion
area identified shall include R-3 and R-4
zoned land to ensure sufficient land is
designated at appropriate densities to
accommodate the development of extremely
low, very-low and low income dwellings.
Ongoing
Ongoing work effort. The recently approved
Specific Plans for San Luis Ranch and Avila
Ranch included a mix of residential zoning
and land use designations, including land
specifically zoned for R-3 and R-4. The
associated Development Agreements
guarantee the future development of rental
and for-sale residential development products
for very-low and low-income households.
21
HE 6.18: Seek opportunities with other public
agencies and public utilities to identify,
surplus land for housing, to convert vacant or
underutilized public, utility or institutional
buildings to housing.
Ongoing
Ongoing work effort. City staff are
continuously seeking opportunities to work
with our regional partners to identify
opportunities for the development of housing.
The City is currently working with Cal Poly
to facilitate the development of their
proposed workforce housing project at the
corner of Grand and Slack.
22
CAP TLU 8.2: Support infill housing projects
that implement General Plan policies,
especially BMR housing close to job
opportunities.
Ongoing
Ongoing work effort. City staff continues to
work with developers, non-profits, and our
regional partners to implement infill housing
development that is consistent with General
Plan policies and the Housing Major City
Goal.
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Multimodal Transportation: 2017-19 Action Plan
Objective: Prioritize implementation of the Bicycle Master Plan, pedestrian safety, and the Short-Range
Transit Plan.
1 Task Completion
Date Revised Status
1 Begin Construction of Railroad Safety Trail –
Taft to Pepper. 3/2019 12/2019
Right of way acquisition underway, Council
Closed Session held in March; 60% plan set
approved by UPRR. 100% plans under review
by Union Pacific. In early November the City
received information from UP that indicated
an increased amount of attention to RRST
review.
2 Complete Railroad Safety Trail Extension –
Pepper to Train Station. 3/2019 3/2020
Design awarded October 2018; estimated
design to be complete by spring 2019 with
construction to happen concurrently with the
Railroad Safety Trail Taft to Pepper.
3
Begin Construction of Bob Jones Trail -
Prefumo Creek to Oceanaire (grant funding
dependent).
3/2019
Preliminary planning and design underway.
Potential new routing may be identified. No
funding to complete construction has been
acquired and construction delay is anticipated.
4 Begin construction of 1st phase of the Broad
Street Bike Blvd. (now Anholm Bikeway) 01/2019
Council adopted plan on February 5th and
again updated project on February 20th and
April 10th. Final amendments approved
September 4th. Negotiations with LDS for
right of way underway. Phase 1 design well
underway with construction tentatively
scheduled for January 2019 due to additional
time constraints of Council direction for
neighborhood meetings and revisions to Phase
II of project.
5 Implement Minor Bicycle Facility
Improvements. Ongoing
Additional green and buffered bike lane
improvements were completed as a
component of the neighborhood Roadway
Sealing and Laurel Lane Complete Streets
project in summer 2018.
6 Broad Street Corridor Access Improvements. 6/2019
South Broad improvements are included as a
need in the Funding the Future of SLO
discussion. Design underway and scheduled
to be complete 1/2019. Construction
estimated for the summer 2019
7 Complete Pedestrian & Bikeway
Maintenance. Ongoing
Meadow Park Pathway work anticipated to
start construction in summer 2019.
Maintenance was completed of the Railroad
Safety Trail.
8 Complete Sidewalk Replacements & New
Installations. Ongoing
The complete replacement of wooden
boardwalk sidewalk planks with new concrete
pavers along Santa Barbara Avenue, High
Street and Osos Street will begin in January
2019. 26 locations within the downtown core
have been identified for repair in conjunction
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with tree maintenance work. Other notable
sidewalk repairs occurred at 686 Higuera and
393 Marsh Street..
9 Complete New Streetlight Installations. Ongoing
Scheduled 1st installation for summer of 2019.
PGE engineering and review requirements
have delayed project from anticipated
December installation. PD has completed
review of existing lights with obstructions –
and those obstructions have been removed by
city staff.
10 Construct Safe Routes to School: Foothill X-
Ing Project. 6/2019
Foothill/Ferrini crossing and Class I Path in
design as part of Anholm Bikeway Phase 1.
Construction for crossing signal targeted 1st
Quarter 2019; construction for Class I Path
and Ramona cycle track targeted for 2nd
quarter 2019—both pending right-of-way
agreement with LDS Church which is
underway.
11 Begin Bicycle Transportation Plan update to
Active Transportation Plan. 6/2020
Consultant has been selected and internal
coordination has begun. In a significant
improvement – the Bicycle Transportation
Committee has been designated the Active
Transportation Committee by Council action.
They will be critical in reviewing the plan
from both a bicycle and pedestrian
perspective. Plan development will take 12-18
months, with an estimated completion date of
June 2020.
12 Develop Parklet Application Guide. 6/2020 This guide will be developed as part of the
Active Transportation Plan.
13
Work with Senior Councils and Commissions
to include senior citizen issues in the
upcoming Active Transportation.
Ongoing This will be consolidated into the Active
Transportation Plan.
14 Continue Deployment of Advance Pedestrian
Signal Timing. Ongoing
Continuing deployment. Additional locations
to be identified in conjunction with most
recent Vision Zero/Traffic Safety Report.
15 Implement revised routes and schedules for
Short Range Transit Plan. Complete
Staff continues to monitor and adjust routes
for service delivery. The Plan is 85%
implemented and ridership for FY 18-19 has
increased over last year this same time frame.
In addition, 8 transit shelters have been
replaced and 4 added to the transit network.
16 Upgrade and replace the SLO Transit
Automatic Vehicle Locators (AVL) system. 12/2018
Grant funds have been secured and initial
research of open source options has
commenced. A pilot project is currently
underway.
17
Work with SLOCOG, RTA and the County of
San Luis Obispo to advance the relocation of
the Downtown Transit Center.
Ongoing
Discussions continue with SLOCOG, RTA
and others to determine project scope and
potential relocation issues. Site options are
being reconsidered.
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18 Begin construction of Higuera Street
Widening – Elks to Chumash Village. 3/2019 Construction targeted for Spring 2019.
19 Begin Construction of Prado Road Bridge
Widening at SLO Creek. 1/2020
Design and environmental review underway.
Construction targeted for FY 2019-20. State
funding delays.
20 Complete Caltrans’ PAED (environmental)
process for the Prado Road Interchange. 6/2019
PSR approved by Caltrans in April work now
able to commence. Supplemental EIR being
prepared for modified project description for
SLO Ranch project.
21 Continue Traffic Safety & Operations
Programs. Ongoing
2016 Report approved by Council in February
2018, with future projects to be included in
future Financial Plans. 2017 Report is
scheduled to be presented to Council 1st
quarter 2019.
22 Implement 2015 Traffic Safety Report
Projects. 6/2019
Signal at Monterey/Osos is complete. Design
underway for Broad/Marsh signal upgrades,
with construction planned 1st Quarter 2019.
Laurel Lane pedestrian improvements
completed as part of 2018 resurfacing
program.
23 Construct California & Taft Roundabout. 6/2019
Design is 65% complete. Grant funding
needed for construction which may delay
construction start.
24 Complete Design of Tank Farm & Orcutt
Roundabout. 10/2018 Design completed 10/2018.
25 Complete Bridge Maintenance Projects. 2/2019
Preventative bridge maintenance project work
was rescoped to complete major maintenance
work on El Capitan Pedestrian and Bike
Bridge. This project is currently under design
with an estimated start of construction in
Spring 2019 pending successful appropriation
of construction funds.
26 Complete Street Reconstruction &
Resurfacing. Ongoing
The Concrete Streets and Accessibility
Improvements project was completed in
August. The neighborhood Roadway Sealing
and Laurel Lane Complete Streets project is
complete. This project completed
maintenance on 25% the City’s neighborhood
streets and delivered the City’s first
designated Complete Streets project. The
Laurel Lane project includes significant safety
improvements for all users.
27
Continue to support multimodal
infrastructure installation and upgrade thru
new development.
Ongoing
Every new development project reviewed by
Transportation staff includes reference to the
current Bicycle Transportation Plan projects
and city multimodal objectives. Significant
work being done on Avila Ranch, SLO Ranch
and OASP developments for infrastructure
installation. Bike box installed on Chorro at
Foothill as part of 22 Chorro development.
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28
Continue implementation of the City’s
Neighborhood Traffic Calming Program at
reduced level from prior years.
Ongoing
The NTM program at Chorro is complete the
test phase with staff and community follow-
up to determine next steps. The Buchon NTM
was delayed due to other priorities and
resumed in November 2018.
29 Continue Traffic Signs and Striping
maintenance. Ongoing
Approximately 100 signs replaced in the
summer of 2018 to meet retro reflectivity
standards.
Climate Action: 2017-19 Action
Objective: Implement Climate Action Plan, assess requirements to achieve a “net-zero carbon City”
target, and implement
cost-effective measures, including implementation of a Sustainability Coordinator and formation of a
Green Team.
# Task Completion
Date Revised Status
1
Identify Resources.
a. Introduce Sustainability Coordinator
to the City.
b. Creation of a City “Green Team”
and establishment of roles and
responsibilities.
c. Support for the establishment of a
“Community Climate Action
Coalition”.
Complete
The position of Sustainability Manager was
filled in March 2018. The “Green Team”
meets regularly and will be a vital source of
information for the Climate Action Plan
Update. The SLO Climate Coalition Task
Force meets every other week, has
successfully held numerous community
outreach events, and serves as a valuable
resource for technical support.
2
Net Zero Carbon City
a. Assessment of the requirements to
achieve a “net-zero carbon city”
target.
b. Identify opportunity sites to create
“net zero carbon district(s)”
c. c. Feasibility analysis and
implementation of a Community
Choice Energy Program
Complete
Staff conducted a wide scan of other US
cities that have a carbon neutral target and
presented the findings, along with a roadmap
to decarbonization, to the City Council in
September 2018. The Climate Action Plan
Update will further explore the roadmap to
carbon neutrality as well as the potential for
creating carbon neutral districts. Council
provided direction to staff to pursue a
Community Choice Energy (CCE) Program
in December of 2017. As of September
2018, the cities of Morro Bay and San Luis
Obispo adopted CCE ordinances and created
a new JPA (Central Coast Community
Energy) for the purpose of hosting the CCE
program.
3 Updating the Climate Action Plan. 6/2019 9/2019
Staff has initiated the Climate Action Plan
update process and expects to have a
consultant team under contract to support the
effort by January 2019. Given the
unexpected “carbon neutral by 2035” target
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provided by Council, the Climate Action
Plan may take slightly longer than expected
to complete.
4
Re-evaluation of the feasibility or relevance
of some of the identified GHG emissions
reduction implementation measures that are
identified in the CAP, and identification of
potential implementation funding sources.
Complete
As part of the Climate Action Plan update,
staff re-evaluated the GHG emissions
reductions measures identified in the existing
planning document. For municipal energy
efficiency measures, the Sustainability
Manager is coordinating with Public Works
to evaluate feasibility of on-bill financing of
design build concept for energy projects
5 Updating the City’s GHG emissions
inventory. Complete
The City’s community GHG inventory was
completed in August 2018 and presented to
Council in September 2018.
6
Biennial reporting on the effectiveness of
individual climate action adaptation and GHG
emission reduction strategies.
6/2019 The biennial report will be developed as part
of the Climate Action Plan update.
7
Ongoing accountability and monitoring of
the effectiveness and progress for all CAP
implementation strategies and measures.
6/2019
The Climate Action Plan update will be
developed to integrate accountability and
monitoring processes into measure
implementation.
8 Development of enhanced incentive programs. Complete
Staff has supported creation of regional
incentive support programs, including: SLO
Green Business Program (lead by Cuesta
College), slogreenchallenge.org, an online
platform to support access and participation
in existing residential incentive programs. In
April 2018 the California Public Utilities
Commission approved creation of a Regional
Energy Network for Santa Barbara, Ventura,
and San Luis Obispo Counties to provide
enhanced residential energy efficiency
incentives. The Regional Energy Network
will begin serving the City in January 2019.
9 Performance of energy assessments/audits
on all City-owned facilities. Complete
Performance assessments of energy use at
City facilities is complete. Comprehensive
audits are pending a defined funding source.
10
Implementation of energy and cost saving
measures and projects that were identified in
the energy assessments/audits on all City-
owned facilities.
Complete
Council approved staff’s use of on-bill
financing to fund lighting retrofits at
facilities throughout the agency. As of
September 2018, final project details were
still being negotiated. Additional efforts to
site upwards of 1MW of solar renewable
energy systems on City facilities to lower
energy costs are also underway. City Hall
HVAC has been replaced with a more energy
efficient unit.
11 Monitoring and measuring of City-owned
facility and infrastructure performance. 7/2019
Comprehensive audit of minor, or secondary
infrastructure pending input from
stakeholders.
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Fiscal Sustainability and Responsibility: 2017-19 Action Plan
Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development
and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing.
# Task Completion
Date Revised Status
1
Update the Economic Development Strategic Plan
(EDSP) that considers and leverages regional
strategies to address the planned closure of the
Diablo Canyon Nuclear Power Plant.
TDB based
on regional
planning
effort.
The EDSP for the City will be updated
following the completion of the Diablo
Study and will springboard off of any
strategies that emerge from a regional
planning effort.
2
Develop the relevant policies and action plans to
allocate the $1.82 million in funding restricted for
Economic Development anticipated with the Diablo
Canyon Power Plant closure settlement agreement,
if approved.
Spring 2019
SB 1090 was approved and financial
policies will be included in the Financial
Plan to guide the allocation of the $1.82
million in Diablo Economic Development
Funds.
3 Complete an update of the City’s Development
Impact Fee Program (AB 1600). Complete Adopted March 2018.
4
Increase revenues from property, sales, and
Transient Occupancy Tax (TOT) by implementing
strategies in the EDSP.
Ongoing
TOT revenues increased by 1.9%. New
TOT revenues will be generated by new
properties (Serra Hotel, Hotel SLO and
Monterey Hotel) that are projected to come
on line in the 209-2021 Financial Plan
5 Continue partnership with Hothouse to create and
expand economic activities. Ongoing
The City’s partnership with Cal Poly has
provided free consulting services to 193
companies in the County creating 51 local
jobs. Several incubator companies are now
in office and warehouse space in the
community and 45 people co-work at the
HotHouse space downtown.
6
Continue to implement Fiscal Health Contingency
Plan measures that address short and long-term
financial challenges.
Ongoing
All hiring and travel expenditures require
case by case City Manager approval to
maximize expenditure savings.
7
Engage employees in Fiscal Health Contingency
measures such as categorizing programs and
services, promoting cost savings through suggestion
programs, and identifying budget balancing ideas.
Engage the community in the City’s Fiscal Health
Complete
City residents and employees were widely
engaged prior to and leading up to the
development of the Fiscal Health Response
Plan.
12
Preparation of an Energy Baseline Report and
Rate Analysis for City-owned facilities and
infrastructure.
Ongoing
Comprehensive audit of minor, or secondary
infrastructure pending input from
stakeholders.
13 Implement Plastic Straw Regulations. Complete Implementation is ongoing.
14 Implement Plastic Bottle Regulations. Complete Implementation is ongoing.
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Fiscal Sustainability and Responsibility: 2017-19 Action Plan
Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development
and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing.
# Task Completion
Date Revised Status
through Speakers Bureaus, online resources, and
holding community workshops and meetings with
Council.
A statistically valid survey was completed in
March 2018. Internal and external
communications and presentations were
provided leading up to the April 2018
adoption of the Fiscal Health Response Plan.
8
Develop a budget balancing plan for City Council
actions consistent with the Fiscal Health
Contingency Plan based on community input that
identifies actions and operational changes needed to
achieve fiscal responsibility.
Complete
Council adopted the Fiscal Health Response
Plan on April 17, 2018. This plan presents a
framework to address the budget imbalance
arising from unfunded liabilities associated
with CalPERS the City’s retirement
investment system. It does so with a
balanced approach over a three-year period
and includes revenue options, operating
expenditure reductions and new ways of
doing business and, as well as shared
employee responsibility for concessions.
Upon the adoption of the Plan, Council
provided strategic budget direction to inform
the 2018-19 Supplemental Budget and the
Plan will guide the 2019-21 Financial Plan.
9 Return with Strategic Budget Direction for 2018-
2019. Complete
Council provided direction on April 17,
2018 with adoption of the Fiscal Health
Response Plan.
10 Implement Fee Study changes and maintain fees
consistent with Council policies on cost recovery. Complete
Fees are updated and in effect. They will be
adjusted annually by CPI by the Finance
Director.
11
Continue to align Local Revenue Measures with
voter priorities as determined by the Revenue
Enhancement Oversight Committee.
Ongoing
Staff holds public meetings with the
Revenue Enhancement Oversight
Committee (REOC) as required by the ballot
measure and ensures review of the revenues
and expenditures by the REOC for
compliance with the ballot measure’s intent.
12
Conduct a long-term fiscal study that incorporates
the anticipated financial impacts related to the
planned closure of the Diablo Canyon Power Plant.
December
2018
January
2019
SB 1090 was approved by the Governor and
UC Berkeley is completing an economic
analysis funded under SB 968. Vital
Economy is currently completing a
complimentary study being managed by the
County of SLO to identify the individual
impacts to each jurisdiction.
13 Conduct a comprehensive review of fiscal policies
and fund balance requirements. Complete
Staff evaluated and presented fund balance
requirements as part of the 2018-2019
supplement and recommended holding
reserves at 20% of operating expenditures.
Other fiscal policies may be added or
amended as part of the 2019-21 Financial
Plan.
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Fiscal Sustainability and Responsibility: 2017-19 Action Plan
Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development
and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing.
# Task Completion
Date Revised Status
14
Provide a recommendation for strategic budget
direction prior to submitting a 2018-19
Supplemental Budget that achieves long-term
structurally balanced fiscal outlook.
Complete
Staff presented recommendations on April
17, 2018 with the Fiscal Health Response
Plan adoption.
15 Implement operating cost reductions consistent
with adopted 2018-19 budget. Complete
The proposed 2018-19 Supplemental Budget
contains operating reductions, new ways of
doing business, and new revenues.
16
Continue to implement and track operational
efficiencies including alternative service delivery,
best management practices, and cost containment
measures that preserve the effectiveness of City
services and operations.
Ongoing
The adopted Fiscal Health Response Plan
focuses on alternative ways of doing
business to reduce cost while minimizing
service level impacts. Savings will be
achieved through refinancing of debt and
early payment of the annual unfunded
liability assessment. New ways of doing
business focused on using fewer consumable
goods and increasing sustainability that are
included in the Budget Supplement as are
thoughtful Departmental reorganizations
which have minimal service level impacts.
The first phase of the Motion project
including Finance and Purchasing modules
has been implemented.HR and Payroll
modules will go live in April 2019 and
Budgeting & Planning in October 2019.
17 Monitor and report performance measures at
Budget Supplement and Financial Plan adoption. Ongoing
Performance measures were incorporated
into the 2017-19 Financial Plan and will be
presented to Council as part of the Mid Year
budget in February 2019.
18
Work with the City Council to review Labor
Relations Objectives and define negotiating
parameters consistent with the Fiscal Responsibility
Philosophy and the Compensation Philosophy.
Complete
Council reviewed and approved in open
session the Labor Relations Objectives
(LRO) on March 20, 2018. The LRO will
continue to guide labor negotiations with
employee groups and have led to successor
agreements with the Firefighters Local
3523, Police Officers Association, and the
unrepresented Management and
Confidential groups.
19
Monitor liability self-insured/excess insurance
program and explore options with CJPIA to control
workers’ compensation costs.
Ongoing
The liability self-insured/excess-insurance
program continues to project savings of
approximately $500,000 over the primary
insurance pool. Based on recent analysis of
the workers’ compensation program,
moving to the excess insurance program
would likely cost the City more than the
primary insurance pool. A pilot strength and
functional movement program for Fire
Suppression personnel is being explored to
reduce potential strains. An aggressive
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Fiscal Sustainability and Responsibility: 2017-19 Action Plan
Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development
and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing.
# Task Completion
Date Revised Status
“return to work” program is supported by all
departments.
20
Develop a policy to address the funding status of
volatile insurance programs (liability, workers’
compensation). Evaluate the purpose and use of the
Insurance Benefit Fund to lessen the financial
impacts of the fluctuations in insurance costs.
Complete
As part of 2017-19 Financial Plan
development, the Council adopted fiscal
policy for the Insurance Benefit Fund and
Self-Insured Liability Program. 2017-18 is
the first fiscal year managing the fund under
this policy direction and no changes are
being recommended. Staff will continue to
monitor trends and will make
recommendations as needed.
21
Implement actions aimed at reducing workers’
compensation and liability claims by 30% in 3
years (by June 30, 2019).
Ongoing
The liability program is on track to reduce
liability claims by 10% in the first year (FY
2016-17), but it is too early to estimate
whether a 20% reduction will be achieved in
the current claim year (FY 2017-18), due to
the time it takes for claims to mature. Based
on the number and severity of workers
compensation claims, it appears the first
year (FY 2016-17) claim costs will not
achieve the 10% reduction goal. Year two
(FY 2017-18) claim year has not closed,
however, while claim count and severity
appear to be trending downward, it is
premature to estimate whether the 20%
reduction will be achieved given the length
of time it takes for a WC claim to fully
mature. Claims are closely monitored;
liability claims are closed as quickly as
possible and workers compensation claims
are managed to expedite necessary medical
care and return to work.
22 Continue to monitor legislation that could impact
City revenues and expenditures. Ongoing
Staff is monitoring legislative changes that
can impact revenues and expenditures and
engages in advocacy through the City’s
legislative platform.
23
Analyze fleet replacement policies with the goal of
minimizing replacement costs and maximizing fleet
utilization.
June 2018
April 2019
included in
Strategic
Budget
Direction
Fleet replacement policies have been
analyzed utilizing data from the Asset
Works system. Staff is currently establishing
revised replacement thresholds based on life
span analysis and documented maintenance
costs. The new thresholds will be reviewed
by Council in early 2019 and utilized in the
19-21 Financial Plan.
Other improvements include the following:
integrated the new asset management system
with the City’s fueling system to improve
tracking of fuel costs, use and needs of each
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Fiscal Sustainability and Responsibility: 2017-19 Action Plan
Objective: Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on economic development
and responsiveness, structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing.
# Task Completion
Date Revised Status
department. Investments in hybrid
technology on specific vehicles to gain fuel
economy, reduce carbon footprint/GHG
emissions and meet City sustainability
goals. Outfitting high usage vehicles such
as Police Patrol vehicles with anti-idling
systems and specifying work trucks with
engine idle shutdown features when possible
to reduce fuel costs, emissions output, and
engine wear and tear. Transit is reviewing
recent State Zero Emission Vehicle (ZEV)
mandates and will be developing an
Electrification/ZEV implementation plan for
systemwide vehicle conversion.
24
Develop a contingency plan to address potential
additional changes to long-term unfunded CalPERS
and OPEB liabilities.
February
2019
Plans for addressing long-term unfunded
liabilities will be presented to Council in
Winter 2019.
25 Make recommendation for allocation of one-time
funds. Ongoing Mid-Year 2017-18 allocations were made.
26
Develop a creative financing plan to construct the
replacement and development of critical public
safety facilities (i.e. Police Station and Fire
Stations).
Ongoing
Staff has developed 10-Year CIP addressing
these funding needs and presented it to
Council in January 2018. The 10-Year list
also included ‘Partnership Projects’
identified in the AB 1600 work described
above. The project review resulted in the
“Funding the Future of SLO” initiative. In
April Council directed staff to include
public engagement and additional project
analysis in the 19-21 Financial Plan. Next
steps are 1) staff work on project list and
community engagement and 2) Council
action on next steps on February 5, 2019
27
Develop creative infrastructure financing options
(grants, land-based funding, local revenues) for
Council consideration and implement as directed.
Complete
Staff is in process of establishing CFDs for
San Luis Ranch and Avila Ranch
development projects. AB 1600 fee study
was updated and adopted by Council. In
April 2018 Council reviewed long-term
Capital Improvement Program funding
needs.
28 Explore expanding utility fees to include storm
water activities. Spring 2019
Staff is analyzing the Stormwater program
and recommendations for revenue
generating options to recoup the costs
associated with this unfunded mandate.
29
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Downtown Vitality: 2017-19 Action Plan
Objective: Continue to improve safety, infrastructure investment, and maintenance in the Downtown
and support the Downtown Association’s proposal to consider a Downtown Improvement District.
# Task Completion
Date Revised Status
1 Complete Design and begin Construction of
the Palm/Nipomo Parking Structure. Fall 2019
Environmental Impact Report (EIR) was be
presented to Council in summer 2018 for
review and was approval. Design work is
planned to commence in the Winter of 2018.
2
Construct next phase of Downtown Renewal
capital improvement project focused on the
800 block of Higuera Street.
Winter 2019
Project is planned to start construction in
January 2020 pending coordination with
Downtown Association and adjacent
properties.
3
Actively work with San Luis Obispo Council
of Local Governments(SLOCOG) and
Regional Transit Association (RTA) to
relocate the current Downtown
Transportation Center to a new location east
of Santa Rosa Street.
Ongoing
Progress is pending additional funding and
coordination with development activity north
of the existing downtown core.
4 Design of the Mission Plaza Concept Plan -
Mission Plaza Restroom Replacement.
Summer
2019
Consultant services procured and work
continues to scope project that will include
Mission Plaza restroom, café, storage area as
well as concepts of what the design may look
like if the Murray Adobe is incorporated into
the plan.
5 Continued downtown tree maintenance,
sidewalk scrubbing, and street Sweeping. Ongoing Maintenance of downtown trees, sidewalk
scrubbing, and street sweeping is ongoing.
6
Begin construction of Marsh Street Bridge
replacement at the southern gateway to
Downtown.
Spring 2019
Pending completion of right-of-way phase,
authorization to advertise for construction
bids will be requested of Caltrans with an
anticipated start of construction in Spring
2019.
7
Assist noncompliant properties to achieve
compliance with the Downtown Fire
Sprinkler Ordinance.
Winter 2018
The fire department continues to assist
noncompliant properties to achieve
compliance with the Downtown Fire
Sprinkler Ordinance.
8 Continued operation of the Community
Action Team (CAT) in Downtown. Ongoing
The Community Action Team continues to
focus on addressing chronic offenders within
the downtown. Additionally, they continue to
work with City Rangers on open space
violations and postings. Hiring for the
Mental Health position with CAT and
Transitions Mental Health Association
(TMHA) is just complete.
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Downtown Vitality: 2017-19 Action Plan
Objective: Continue to improve safety, infrastructure investment, and maintenance in the Downtown
and support the Downtown Association’s proposal to consider a Downtown Improvement District.
# Task Completion
Date Revised Status
9 Continued Downtown Bicycle Patrol. Ongoing
The police department continues to deploy
two bicycle officers when resources allow
due to minimum staffing patrol needs.
Transient related issues continue to be a
priority for the bike officers. An increase in
the number of calls involving the homeless
population, related to the total number of
calls for service has occurred.
10
Coordination between the Police
Department and County of San Luis Obispo
to achieve expanded mental Health Services
focused on Downtown.
Ongoing
The County awarded the contract to TMHA
and a full-time social worker has been hired
to work with the Police Community Action
Team. A MOU has been completed and
signed by both TMHA and the City.
11
Identification and implementation by Police
Department of best practice tools designed
to decrease nuisance calls in the Downtown.
Ongoing
The police department worked with
downtown business owners to maintain
trespassing letters on file for local business.
In April the Police Department designated
one of the sergeant positions as the
Downtown sergeant. This position will be a
2-year position that will focus on addressing
the needs and crimes within the City’s
downtown.
12 Council and community review and
consideration of Downtown Concept Plan. Complete
13 Council and community review and
consideration of Mission Plaza Master Plan. Complete
14
Following adoption, oversee the
implementation of the Downtown Concept
Plan.
Ongoing
15
Following adoption, develop a phasing and
resources needs plan for the
implementation of the Mission Plaza
Concept Plan.
Summer
2019 A budget request to implement the first phase
of work, will follow the design.
16 Complete the City’s Zoning Regulations
Update. Complete
City Council adopted the Zoning Regulations
Ordinance on August 21, 2018. The second
reading of the Ordinance was on September
18, 2018. The Ordinance became effective on
October 19, 2018. Subsequent amendments
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Downtown Vitality: 2017-19 Action Plan
Objective: Continue to improve safety, infrastructure investment, and maintenance in the Downtown
and support the Downtown Association’s proposal to consider a Downtown Improvement District.
# Task Completion
Date Revised Status
will be considered by City Council through
Spring 2019.
17 Complete a Feasibility Study for the Upper
Monterey Area Plan Parking District.
Summer
2019
On April 10, 2018, Council authorized an
interim part of this study (Upper Monterey to
the RR) as part of the Zoning Regulations
18 Complete a Feasibility Study of Downtown
Maintenance District.
Summer
2019
The Downtown Association elected to take a
pause in the process to form a Property Based
Improvement District pending more outreach
with Downtown Property Owners. More
progress is anticipated as the new CEO gets
oriented and resumes discussions with
property owners and businesses.
19
Coordinate, in partnership with the
Downtown Association, exploration of
opportunities to provide enhanced
maintenance or other services to maintain
Downtown vitality.
Ongoing
A consultant was hired to analyze and present
recommendations for a property-based
business improvement district. Initial
recommendations were presented to
Downtown and SLO and key stakeholders in
March 2018. It was determined that the
continued refinement and outreach should
take place over the next year before moving
forward.
20 Design Farmer’s Market Safety Project and
circulate for bids 12/2018
Project approved by Council as part of Mid-
Year budget. Bid package under design for
circulation in winter 2018. Project will be
phased to include barriers at both ends of
Higuera and both ends of Chorro; and, both
entrances to Mission Plaza. Original design
has been modified to accommodate the
presence of conflicting underground utilities
and the shallow depth of the bridge deck on
Higuera. Staff anticipates coming to the City
Council in Spring 2019 with a
recommendation after meeting with the ARC,
CHC, and Downtown SLO.
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PLAN PURPOSE
The purpose of this plan is to establish a three -year framework to respond to the long-
term fiscal impacts of the significant increases in required pension contributions to the
CalPERS retirement system. This plan is a specific deliverable and is structured in a
manner to provide guidance for budgetary actions in the 2018 -2019 Fiscal Year as well
as to provide broad strategic budget direction for the 2019-2021 Financial Plan.
THE PROBLEM
The City of San Luis Obispo and the other
3,000-member agencies in the California
Public Employees Retirement System
(CalPERS), are facing significant increases
in required pension contributions. The City's
annual CalPERS costs are projected to more
than double in ten years; growing from $7.8
million in 2014-15 to $19 million in 2024-25
for the General Fund. These costs will
continue to grow through 2031-32 and affect
all funds including the City's Enterprise
Funds (Water, Waste Water, Transit, and
Parking).
To addresses these rapidly rising costs, the
City must address an $8.9 million ($7.5
million from the General Fund and $1.4
million from the Enterprise Funds) budget
gap over the next three fiscal years (2018-
19, 2019-20, and 2020-21). The size of the
problem has been informed using fiscal
forecasting supported by third party
economic models, as well as the City's
outside sales tax advisor and a separate
actuary who specializes in pensions.
The City's fiscal forecasting is based on
assumptions such as:
1. Continuing current levels of service.
2. Continuing the commitment to capital
investment including a slight increase
due to ongoing maintenance needs.
3. Modest long-term revenue growth and
inflation.
4. Continuing Local Revenue Measure
(Measure G) funds.
5. Enterprise Funds revenue projections
based on approved and historic rates and
revenue growth trends.
The City must continue to utilize CalPERS as its
retirement system as it is not feasible for the City
to leave without incurring significant costs. To
exit CalPERS, the City would have 30 days to
meet its projected (worst case) financial
obligations estimated to be from $377 to $495
million at the time of separation. Furthermore,
the current legal framework in California restricts
cities ability to reduce retirement benefits for
current employees, as well as retirees. Lastly,
CalPERS forbids offering alternative retirement
benefits for new employees, different from those
reduced benefits that already have been
legislatively authorized.
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GENERAL FUND FOCUS; ENTERPRISE
FUND PARTICIPATION
This Plan is primarily focused on guiding
the General Fund closure of the ongoing
budget gap over the next three fiscal
years.
The Enterprise Funds (Water, Sewer,
Parking, and Transit) are also participating
because the problem of rising pension costs
also affects employees of the Enterprise
Funds as they participate in the same
CalPERS retirement system as General
Fund employees. Each fund, however, will
solve the problem based on the fund type
and its unique situation, as discussed later in
this report.
KEY CITY POLICIES AND GUIDING
PRINCIPLES FOR THIS PLAN
• The City’s existing financial policies
provide the foundation for this Plan and
include a balanced, sustainable budget
based on conservative investment practices
and diversified revenues.
• Specific policies which support this Plan
include: the 2001 Fiscal Health Contingency
Plan, the 2014 Financial Responsibility
Philosophy, the Compensation Philosophy
and the 2017 Long-Term Liabilities and
Maintenance of Infrastructure.
• Ongoing Fiscal Health Monitoring
including modeling of economic trends and
incorporation of new data will occur through
the budgetary process and three years of this
Plan.
• Budgetary changes in response to the Plan
will minimize service level impacts.
• Budgetary reductions will be implementable
and monitored during the three years of the
Plan.
• Sustainability principles will be
incorporated into changes in the ways the City
“does business” where possible.
• Capital Improvement Project investment
will not be diminished in the General Fund
and is projected to increase slightly during the
Plan’s effective period.
• The City’s Organizational values will be
considered when evaluating budgetary
reductions so that employees, programs,
departments, and the organization can
continue to support and implement these
values.
• The maintenance of facilities, infrastructure,
and equipment will continue, and reductions
will have the least amount of maintenance
impacts as possible.
• The application of unassigned fund-balance
due to one-time expenditure savings or one-
time increase in revenue will continue to be
applied to paying down long-term unfunded
liabilities and investment in infrastructure
and/or critical equipment.
• Ongoing increases in revenue will be
carefully evaluated and will also be
considered as a means to speed up the
paydown of unfunded liabilities. The City will
carefully evaluate the tradeoffs of expanding or
adding new programs, rather than paying down
unfunded liabilities.
• The City will work closely with its elected
representatives and others (including the
League of California Cities) in ongoing efforts
to address long-term changes to the CalPERS
system.
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INTEGRATION OF THE PLAN WITH THE FINANCIAL PLANNING PROCESS
The Fiscal Health Response Plan will be applied to the 2018-19 Budget Supplement as well
to the 2019-21 Financial Plan process. The 2019-21 Financial Plan will include Major City Goals
informed by public participation. However, the Fiscal Health Response Plan sets forth the
framework by which the 2019-21 will need to close the structural budget gap of $8.9 million over
the term of this Plan.
For ease of use, and so that Council and the community can review the implementation of this
Plan with respect to solving this problem, this document will be updated with a record of Council
meetings regarding the Plan’s implementation.
Council Meeting Date Action Related to FHRP Taken
April 17, 2018
1. Adoption of FHRP
2. Strategic Budget Direction for 2018-19 Budget Supplement
To be completed as meetings
occur.
Scheduled meetings include June 5 and 19, 2018 Council meetings on
the 2018-19 Budget Supplement and primary options to address
unfunded liabilities.
ELEMENTS OF THIS PLAN
There are three key components to this Plan. These components create savings and
revenue necessary to address the unfunded liability. In addition, there are two primary
options for reducing the increased costs of the City’s unfunded liability.
THREE KEY COMPONENTS PRIMARY OPTIONS TO ADDRESS THE
UNFUNDED LIABILITY
1. New Revenues
2. Operating Reductions and New Ways
of Doing Business
3. Employee Concessions
1. Prepayment of both normal and
unfunded PERS Costs
2. Section 115 Pension Trust Formation
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KEY COMPONENTS OF THIS PLAN
The City must address an $8.9 million ($7.5 million from the General Fund and $1.4 million from
the Enterprise Funds) budget gap over the next three fiscal years (2018-19, 2019-20, and 2020-
21). There are three key components that have been identified to accomplish this Plan: 1) new
revenues, 2) operating reductions and new ways of doing business, and 3) employee
concessions. These will be apportioned as follows for the General Fund:
NEW REVENUES
30-40% of the solution is proposed through new revenues. Only the General Fund will
participate in this component.
• A General Fund Cannabis Tax. The General Fund’s primary sources of funding are taxes
and fees for services. A general-purpose tax on Cannabis sales, requiring voter approval of a
simple majority, will be evaluated for placement on the November 2018 ballot.
Should a Cannabis Tax be Unsuccessful? Should a Cannabis Tax be unsuccessful,
either by not receiving voter approval or by underperforming in projected revenues, other
new sources of revenue will be evaluated, such as consideration of increased Transient
Occupancy Tax (TOT) or a Stormwater Tax. Additional revenue from taxes and any
recommended would require further direction from Council prior to implementation.
• The Enterprise Funds will not propose new revenues to solve this problem. The
Enterprise Funds are funded by rates and/or fees for the services provided. Transit is primarily
funded through Federal and State grants and programs in combination with a 20% match from
fares. Increases to rates and/or fees will not be made to close this budget gap in the Enterprise
Funds. Any changes to those rates and/or fees in the Enterprise Funds during the fiscal period
of this Plan will be due to other cost increases or a result of enhanced fee recovery unrelated
to unfunded pension liability cost increases.
30 -40%
20 -30%
30 -40%
Revenues
New Ways of Doing Business
Operating Reductions
Concessions
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OPERATING REDUCTIONS AND NEW WAYS OF DOING BUSINESS.
30 to 40% of the solution is proposed from operating reductions and/or new ways of doing
business. All Funds and Departments will participate in this component to varying degrees.
OPERATING REDUCTIONS
1. Proactive Fiscal Management.
a. Refinance City Bonds. Eligible City
bonds will be refinanced to reduce debt
rates.
b. Pay CalPERS Required Contribution
in One-Lump Sum Once A Year. Based
upon the City’s cashflow analysis, the City
will exercise the option to pay
contributions to CalPERS in one lump
sum resulting in ongoing savings.
CalPERS offers two options of payment,
annual and one-lump sum.
c. Evaluate other Fiscal Efficiencies.
For instance, credit card bank charges
will be evaluated so that any cost
reductions which do not diminish
customer service are implemented. Other
fiscal management efficiencies will be
explored for cost savings.
2. Pursue Energy Efficiencies and
Consumption Reductions. Departments
will evaluate budgets to identify energy
efficiencies which could save both costs and
energy. Fuel and other consumables usage
will be reduced through fuel efficiency
vehicles and/or use pattern improvements.
3. Consultant services agreements. When
possible, consultant services agreements
will be renegotiated for better value and/or
budgeted amounts will be adjusted to reflect
service levels needed.
4. Other Agreements. The City has multiple
agreements for a myriad of purposes ranging
from the purchases of goods to the provision
of City services and/or use of City facilities.
Those agreements subject to renewal will be
evaluated for the opportunities to decrease
costs or to increase cost recovery while at
the same time balancing the value of
community partnerships.
5. Tax and Fee Enforcement. The City will
continue to proactively seek compliance with
business license, Transient Occupancy Tax
(TOT) Homestay, Code Enforcement, and
other activities which could result in more
accurate revenue collections.
6. Long-term liabilities. Consistent with the
City’s fiscal policies, the City will continue to
utilize one-time funds to pay down unfunded
liabilities and to invest in infrastructure.
7. Risk Management. The City will continue
to actively implement its “30% in 3” risk
management program to reduce liability and
worker’s compensation expenditures.
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NEW WAYS OF DOING BUSINESS
1. Sustainability.
The City will pursue increased
investment in sustainable infrastructure
with positive and short-term paybacks on
investment.
2. Enhanced Efficiency & Effectiveness.
a. Energy Efficiency.
Including the use of solar power will
be explored and implemented when
possible for short and long-term cost
savings. Other energy efficiencies
will be evaluated as well.
b. Enterprise Resource System.
The Motion project, consisting of
business process re-engineering and
implementation of an Enterprise
Resource System, will result in
decommissioning of several older
systems and will create opportunities
for employee efficiencies and
effectiveness.
c. Equipment Replacement.
Equipment replacement will result in
energy savings, more accurate data
collection, and more accurate
revenues will be identified.
3. Thoughtful re-organizations.
Staff transitions will be used to evaluate
current staffing levels and service
provision. The City will evaluate cross-
departmental operations, service levels,
and contracted services for re-
organization opportunities.
EMPLOYEE CONCESSIONS.
20% to 30% would be contributions via employee concessions. All Funds, General and
Enterprise, will participate in employee concessions.
• In addressing unfunded pension liability as it relates to employee concessions the City’s
adopted Fiscal Sustainability Philosophy, Compensation Philosophy and Labor Relations
Objectives will provide guidance.
• The City will meet and confer in good faith with its represented employee groups regarding
the impacts of changes to wages, hours, and/or working conditions.
PRIMARY OPTIONS TO ADDRESS THE UNFUNDED LIABILITY
The City will evaluate each of the options in June 2018: Prepayment of unfunded liabilities by pre-
paying PERS and/or funding a Section 115 Pension Trust to make future payments to PERS.
The use of each method may vary by Fund.
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COMMUNICATIONS STRATEGIES
The following identifies communication strategies with the Community and employees.
COMMUNITY ENGAGEMENT
As is the City’s practice the Community will
be engaged consistent with the City’s Public
Engagement and Noticing (PEN) Manual.
There will be multiple methods of
communications used to inform and educate
the community as well as receive feedback
and address questions and concerns. In
addition to the PEN methods of
communication and public engagement will
include:
• Public Notification of Council
Meetings on the Plan.
• What’s New in SLO and other
website informational postings.
• E-notification, social media posts
and press releases.
• Community forums and
workshops in conjunction with the
financial planning process.
• Presentations to City Advisory
Bodies and interested community
groups.
• Open City Hall topics.
EMPLOYEE ENGAGEMENT
As is the City’s practice all employees will be
engaged in the financial planning process
and the application of this Plan to that
process. There will be multiple methods of
communications to inform and educate
employees as well as receive input and
address questions and concerns.
• Briefings with City Manager,
Department Heads and Budget
Manager.
• Updates via emails and
SLOWhat Monthly publication.
• Briefings with employee
associations’ representatives.
• Surveys to Employees
• Organization-wide briefings.
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IMPLEMENTATION OF THE PLAN
• The Plan will guide staff’s preparation of the 2018-19 Budget Supplement for Council’s
consideration and adoption in June 2018.
• The Plan will guide the Financial Plan process for the development of the Major City Goals
and Financial Plan for 2019-21.
EXTERNAL IMPACTS TO PLAN
This plan has been based on assumptions made in the fiscal forecast in December 2017. It is
based on fiscal forecasts which have multiple inputs from multiple economic resources both
external and internal to the City. However, a forecast is an estimate at a point and time and during
the life of this Plan there could be significant external forces which further impact the City’s fiscal
forecast. There are other fiscal policies and plans in place to help guide such a change. The
following could have impact to the City’s overall budget through either expenditures or revenues
and would result in staff returning to Council for further direction.
• Changes in Economic Conditions. The nation continues to be in an unprecedented
economic expansion following the Great Recession. This is unlikely to continue for the
entire period of this Plan. Additionally, changes in federal fiscal policy and grant funding
may result in a slowing of the national and local economies.
• Diablo Closure
The closure of Diablo Canyon presents an uncertain economic impact to the City and
County of San Luis Obispo. At the time of this Plan’s creation, the mitigation of that
impact is uncertain. The City will continue to have a lead role in addressing this problem
and preparing an economic and financial analysis of the impacts of this closure. This
analysis will be incorporated into the 2019-21 Financial Plan.
• Further CalPERS Changes. Required contributions to CalPERS are based on actuarial
assumptions and further changes may occur if approved by the CalPERS Board.
Examples of past significant changes in assumptions include changes to amortization
periods, changes to expected rate of return, and changes to demographic assumptions.
Future changes in actuarial assumptions may once again result in significant fiscal impacts
to the City.
• Natural Disaster. All municipalities are vulnerable to natural disasters be it earthquake,
fire, or flood. The City maintains reserves for these unfortunate circumstances but in
recent years the magnitude of disasters seen in neighboring cities north and south have
been at unprecedented economic levels.
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SECTION D: SUMMARY OF OVERALL BUDGET SUPPLEMENT
This section provides simple charts and tables which highlight key financial relationships and summarize
the overall budget document. Graphics summarizing the following areas are included:
• Summary of Revenues and
Expenditures for 2017‐18 and 2018‐19
Changes in
Financial Position
• Revenue by Fund and TypeRevenue Detail
• Expenditure by Department, Function,
and Type
Expenditure
Detail
• Transfers between funds
Operating
Transfers
• Authorized positions by Department
Authorized
Regular Positions
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ATTACHMENT 2
Status Report on
General Plan Implementation Programs
November 2018
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Status of General Plan Implementation Programs
TABLE OF CONTENTS
Introduction
Overview 1
Status of General Plan and Area Plan Implementation Programs 1
Report Organization 2
Findings 3
Status of General Plan Implementation Programs by Element
Land Use Element 8
Circulation Element 15
Housing Element 21
Noise Element 27
Conservation and Open Space Element 28
Safety Element 31
Parks and Recreation Element 33
Water and Wastewater Element 34
Status of Area Plan Implementation Programs
Orcutt Area Specific Plan 37
Mid-Higuera Area 42
Railroad District 44
Airport Area Specific Plan 47
Margarita Area Specific Plan 49
Climate Action Plan 55
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INTRODUCTION
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OVERVIEW
The purpose of this report is to provide a concise yet comprehensive summary of the status of all
General Plan implementation programs as well as implementation programs for key “area” plans:
Downtown, Mid-Higuera Area, and Railroad District Area. This report also covers action items
and the status of efforts in the Airport Area, Margarita Area and Orcutt Area Specific Plans.
STATUS OF GENERAL PLAN IMPLEMENTATION PROGRAMS
The following schedules provide a concise
yet comprehensive summary of the status of
all General Plan implementation programs.
As discussed in greater detail below, of the
409 individual implementation programs in
the General Plan, 93% (379) of them are
completed or have been integrated into the
City’s ongoing operations. This is a nearly
seven percent increase of implemented
programs since the last Financial Plan
reporting.
Given the ambitious nature of our General
Plan and its twenty-year time horizon, we
believe that this represents significant
progress in achieving General Plan goals.
The incomplete programs (7% of the total) are classified as follows:
◼ 2% (8) as being relatively easy to achieve from a resource perspective.
◼ 4% (16) as being of moderate difficulty.
◼ 1% (6) as being difficult to achieve.
Report Focus: Why Report on the Status of Programs? The City’s General Plan is composed of
a “building block” hierarchy of goals, objectives, policies and programs. Goals and objectives are
direction-setters. They describe desirable conditions and preferred outcomes as they are applied to
specific situations. Goals are generally not quantifiable, time-dependent or suggestive of specific
actions for their achievement. Objectives generally state an intermediate step toward attaining a
goal. Policies are typically more specific statements that guide decision-making.
Programs are actions that implement goals, objectives and policies. As such, monitoring our
progress in implementing General Plan programs is an excellent way of monitoring our progress
in achieving General Plan goals and objectives. And for this reason, it is the focus of this report.
Status of General Plan Implementation
Programs
Complete or Ongoing 93%High Difficulty 1%
Medium Difficulty 4%Low Difficulty 2%
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INTRODUCTION
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Report Organization
General Plan Elements. The report first organizes each of the implementation programs into one
of our eight General Plan elements:
◼ Land Use (LU)
◼ Housing (H)
◼ Circulation (C)
◼ Conservation and Open Space (COSE)
◼ Noise (N)
◼ Safety (S)
◼ Parks and Recreation (PR)
◼ Water and Wastewater (WW)
Implementation Program Summary. A short “one-line” narrative is provided for each
implementation program, referencing the specific General Plan Program number. (Each program
is assigned a “line number” solely for easy internal reference within the report itself.)
Lead Department. The lead responsible for implementing the program is presented. (In many
cases, several departments work closely together in implementing the program; this simply
indicates which department has the lead role in coordinating program implementation.)
◼ Administration (ADM)
◼ Community Development (CD)
◼ Finance & Information Technology (FIT)
◼ Fire (FD)
◼ Parks and Recreation (P&R)
◼ Police (PD)
◼ Public Works (PW)
◼ Utilities (UT)
Implementation Status. All programs are organized into one of two major “status” categories:
If it’s complete (or will be complete by June 2019) or has been integrated into City operations
as an ongoing program, this is noted with a “C” (complete) or an “O” (ongoing) in the first
status column of the summary.
If it won’t be completed (or become an ongoing program) by June 2019, then we have rated
how difficult it will be to complete on an “order of magnitude” (qualitative) basis using the
following coding:
Low (L): Minimal staff effort and no consultant assistance will be needed to complete the
analytical work and coordinate stakeholder-public outreach. While this is a qualitative
assessment by the lead department, this generally means that less than 80 hours of staff work
and no additional budget resources will be needed to implement the program.
Medium (M): Significant staff effort, some consultant assistance or supplemental funding for
operations or capital projects will be needed to complete the analytical work and coordinate
stakeholder-public outreach or implement the program. Again, while this is a qualitative
assessment by the lead department, this generally means between 80 to 500 hours of staff work
and/or up to $25,000 for added budget resources will be needed to implement the program.
High (H): Major staff effort, consultant assistance or supplemental funding for operations or
capital projects will be needed to complete the analytical work, coordinate stakeholder-public
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GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
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outreach or implement the program. Generally, this means that more than 500 hours of staff
work and/or more than $25,000 for added budget resources will be needed to implement the
program.
Area Plans. “Area plans” like the Railroad District Plan are not General Plan Elements.
However, each of the area plans adopted by the Council that have “implementation programs” –
Mid-Higuera Street Enhancement Plan, Railroad District Plan, Airport Area Specific Plan,
Margarita Area Specific Plan and Orcutt Area Specific Plan – are closely linked to the General
Plan implementation. Accordingly, the status of “area plan” implementation programs is also
provided in this report. They are organized in the same manner as the status report on General
Plan program implementation. The Downtown Concept Plan is a graphical document with
supporting guidance, and an update was completed in September 2017.
Findings
General Plan Programs
Status Summary. As noted above, 93% of the City’s General Plan implementation programs
have been completed or integrated into the City’s day-to-day operations. The Council recently
adopted updates to the Land Use, Circulation, Housing, Water and Wastewater Elements, the
tables and information in this report capture the modified and added programs for those elements.
The Climate Action Plan contains another set of programs or strategies that require
implementation. The Climate Action Plan is currently in the process of being updated and is
anticipated to be completed by Summer 2019. This strategy document overlaps programs in almost
every other element of the General Plan, and therefore may represent some duplication in
implementation, however it is included as a summary of strategies for which implementation is
vitally important in order to meet Greenhouse Gas (GHG) emissions reductions goals.
The following is a more detailed summary of the status of existing General Plan implementation
programs by element:
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Summary: Status of General Plan Implementation Programs
General Plan Element
Complete or
Ongoing
Difficulty to Complete
Total Low Medium High
No. Pct. No
.
Pct. No. Pct. No. Pct.
Land Use 60 82% 2 3% 8 11% 3 4% 73
Housing 73 94% 2 2% 3 4% 0 0% 78
Circulation 67 97% 1 1.5% 1 1.5% 0 0% 69
Conservation & Open Space 65 96% 0 0% 3 4% 0 % 68
Noise 6 75% 1 12.5
%
0 0% 1 12.5
%
8
Safety 34 97% 1 3% 0 0% 0 0% 35
Parks and Recreation 38 95% 1 2.5% 0 0% 1 2.5% 40
Water and Wastewater 37 97% 0 0% 1 3% 0 0% 38
TOTAL 379 93% 8 2% 16 4% 5 1% 409
As reflected above, there are very few “low effort” programs remaining.
Resource Requirements. Based on our qualitative assessment of the resources need to complete
the implementation of the remaining programs, the following is a “high-level” assessment of the
staff resources and added budget resources that will ultimately be needed to complete these
programs at some point:
HIGH LEVEL Resource Assessment
Remaining
Programs
Difficulty FTE's* and/or Consultant Costs
min max min max
Low 8 0 0.35 $0 $0
Medium 16 0.69 4.32 $0 $400,000
High 5 1.35 1.35 + $125,000 $125,000 +
Total 29 2.04 6.02 + $125,000 $525,000 +
*Annual Full-time Equivalent (FTE)
Value of Remaining Action Items. These summaries show which programs remain undone and
the “order of magnitude” resources that would be needed to complete them. However, they do not
address their relative value to the community compared with the effort that would be required to
complete them. For example, it might be tempting to direct our resources to finishing-up the “low
or medium difficulty” programs to get them off our plate. However, this should be weighed against
the value likely to be derived. In this case, we might have a greater impact in improving the
community’s quality of life if we focused the same level of resources towards accomplishing a
fewer number of “high value” (but relatively higher effort) programs. On the other hand, we would
want to avoid undertaking high-effort but lower-value programs.
The following is a paradigm or model for assessing these “value versus effort” trade-offs, which
can be summarized as follows in the context of allocating resources towards completing General
Plan programs:
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In this model, the first priorities should be selected from Quadrant A: “low effort but high value.”
(These are the proverbial “low hanging fruit.”) After this, Quadrants B and C are a “toss-up.”
However, in all cases, we would want to minimize efforts towards programs that might fall into
Quadrant D, unless the community or decision makers think that there is greater value than the
weight assigned by City staff.
Ultimately, assessing the value of individual programs and directing resources towards completing
them is the Council’s decision (and in the final analysis, this is what the City’s goal-setting and
budget process is all about). However, staff can prepare an “order of magnitude” assessment of
those programs we believe would have the most near-term benefits relatively quickly if the Council
believes that this would be helpful background information in the goal-setting process.
Area Plans
Railroad District Plan Programs
Thirteen of the forty-one Railroad District Plan implementation programs have been completed or
integrated into ongoing programs. Of the remaining twenty-eight programs that are not yet
complete or integrated into ongoing programs, we have classified two of them as “medium”
difficulty and twenty-six as “high.” Several of the programs that call for bike paths along the
railroad right-of-way may need to be adjusted to reflect the inability to achieve easements from
the Union Pacific Railroad.
Mid-Higuera Area Enhancement Plan Programs
While work has been done toward implementation, none of the twenty-four programs set forth in
this long-term plan have been completed. We have classified two of the twenty-four programs
that are not yet complete as “medium” difficulty and twenty-two of them as “high.” The LUCE
calls for update of this plan.
Quadrant A Quadrant B
Low Effort, High Value Low Effort, Low Value
Quadrant C Quadrant D
High Effort, High Value High Effort, Low Value
High LowEFFORTLowHigh
VALUE
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Downtown Concept Plan
The General Plan provides policies and programs for all areas of the City including a specific
section in the Land Use Element regarding the Downtown. The Downtown Concept Plan is a
graphical map with principles that has long been used to guide decisions regarding development
in the Downtown. This document is referenced in the Land Use Element (4.0) as an illustration of
how Downtown development may occur but was never envisioned as a static document, rather
more of a vision concept. Some of the concepts are being pursued with review and approval of
private development. Others require City resources and action, and some concepts may change.
The Downtown Concept Plan was updated in September 2017, as called for in the Land Use and
Circulation Elements update.
Airport Area Specific Plan Programs
Of the twenty-nine programs set forth in this plan, four have been completed and sixteeen have
been integrated into ongoing programs. We have classified two of the remaining nine programs
that are not yet complete as “medium” and six as “high.” This Specific Plan was amended in
September 2014 after many years of agency collaboration to address the Chevron Remediation
and Redevelopment proposal and some of these programs have been updated as part of the process.
The preparation work needed to begin remediation activities is currently underway on the south
side of the property. The Specific Plan was also amended again in 2017, when the Avila Ranch
project was approved. There is renewed interest to annex unincorporated properties in the City
(e.g., Fiero Lane) now that the recovery of the economy is fully underway and some water and
wastewater challenges are on the horizon.
Margarita Area Specific Plan
The Margarita Area Specific Plan was adopted in October 2004 and accommodates 868 dwelling
units and about 900,000 square feet of business park development. Three subdivisions have been
approved for a total of approximately 300 residential lots, and several commercial developments
have been approved. Within the approved subdivisions, 166 dwelling units have been completed
in the Serra Meadows subdivision, building permits have been issued and the first and second
phases of the Toscano subdivision, where single family dwelling units are under construction and
nearing completion/occupancy. Many of the programs listed in the plan are dependent upon actual
construction taking place since they will be implemented with development; however, three of the
87 programs have been completed: the dedication of the South Street Hills; accommodation of
site for HASLO to provide affordable dwellings (e.g., Courtyard at the Meadows) and the
construction of the Damon-Garcia Sports Field complex. Changes to the fee program were
included as part of the Capital Facilities Fee Program update (AKA AB 1600) to clarify parkland
fee structure and to re-assign a portion of parkland payment responsibility to the community at
large to reflect the community-wide benefit of the Damon-Garcia Sports fields.
Orcutt Area Specific Plan
The Orcutt Area Specific Plan was approved in 2010 and accommodates nearly 1,000 new
residential units and some 15,000 square feet of commercial retail space. The area was annexed to
the City in November 2011. None of the 93 programs identified has yet to be completed because
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the programs specify conditions that will be accomplished by development occurring in the area.
The programs are listed as “ongoing’ because the programs will apply to and be implemented by
development in the area. Currently, subdivision and development proposals have been submitted
and are in process as follows:
• Wingate (Taylor) – 142 total units (45 SFR), 33 row houses, 52 senior apartments (+12
lofts) and a one-acre park: Tentative Tract Map approved
• Jones – 65 total units (9 SFR, 9 MU, 43 condominium units, open space along creeks): In
process
• Righetti Ranch – 304 total units (272 SFR, 32 townhomes, 14 + acre neighborhood park,
and 52 + acres of open space on Righetti Hill): Under construction.
• West Creek - 179 total units (74 SFR, 105 apartments): In process
OASP programs will be implemented as part of these and future developments in the area.
Avila Ranch Specific Plan
The planning application for the Avila Ranch Specific Plan was approved in Summer 2017. The
entitled project will accommodate 720 new residential units, 15,000 square feet of commercial
uses, and approximately 52 acres of open space.
San Luis Ranch Specific Plan
The planning application for the San Luis Ranch Specific Plan was approved in Summer 2017.
The entitled project will accommodate 520 new residential units, a minimum of 50,000 square feet
each of commercial, office and hotel/visitor servicing uses, a minimum of 5.8 acres of parks, and
approximately 40 acres of open space/agriculture. Approval of the property annexation is
anticipated in Fall 2018.
T:\Budget Folders\2017-19 Financial Plan\November 15th Setting the Table\Status of General Plan Implementation
Programs_2015-17 update.docx
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Status of General Plan Implementation
Programs
STATUS AS OF October 2018
Complete Difficulty to
Complete Lead
Program
Number Program Summary Or
Ongoing Low Med High Dept.
LAND USE ELEMENT
1 Growth Management
1.14.1 The City will monitor reports from the County
“resource management system” and advocate for
adherence to that system.
O
L
CD/UT
1.14.2 The City shall advocate and help arrange quarterly
coordination meetings among planning directors of
local jurisdictions to discuss regional issues.
O
L
CD
1.14.3. The City will participate with the County in
reviewing and providing input on County projects
and general plan amendments that have potential
to impact the City or be inconsistent with City
policies.
O
M
CD
1.14.4
The City shall seek County Board of Supervisors
approval amending the County Land Use Element
to make it consistent with this element. The City
will work with the County during updates of the
County's plan for the San Luis Obispo planning
area.
O
M
CD
1.14.5 The City shall maintain a memorandum with the
County, pledging that neither agency approve a
substantial amendment to its plan for San Luis
Obispo's planning area without considering the
recommendation of the other agency
C
CD
1.14.6 The City shall prepare and maintain a Planning
Area Map in the General Plan. The City will
establish and maintain County concurrence for the
map, which applies to the City’s Planning Area
outside the urban reserve.
O
L
CD
1.14.7 The City shall maintain a development fee
program that covers costs associated with City
services and facilities. Periodic review of the fees
collected will ensure they are adequate to cover
City costs.
O
H
CD
2.1 Conservation and Development of Residential
Neighborhoods
2.10.1. The City shall review, revise if deemed necessary,
and actively enforce noise, parking, and property-
development and property-maintenance
standards.
O
M
CD
2.10.2. The City shall implement, and regularly review and
update property-maintenance regulations focused
on proper enclosure of trash, appearance of yards
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CD
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and buildings from the street, and storage of
vehicles.
2.11.1 The City shall evaluate student housing
preferences and consider revising development
standards to better meet them in multifamily
housing near campus.
O
M
CD
2.11.2. The City shall review, and revise, if deemed
desirable, its standards for multifamily housing so
that apartments will provide usable open space
and storage similar to the requirements for
condominiums.
C
CD
2.12. The City shall adopt special development
standards to guide addition of dwellings within
Downtown residential areas to implement
Policy 2.8.
C
CD
2.13. The City will consider new regulations, for Low-
Density and Medium-Density Residential areas, to
require special review for (1) incompatibly large
houses, (2) replacement or infill homes in existing
neighborhoods, and (3) accessory buildings with
plumbing facilities allowing easy conversion to
illegal second dwellings.
C
CD
2.14. The City shall implement Neighborhood Wellness
Action Plans to help residents preserve and
enhance their neighborhoods.
C
CD
2.15. The City will evaluate alternatives to the current
maximum number of dwelling units per acre
(based on bedroom count) and height, parking,
and setback standards, to regulate residential
building intensity, and bulk and mass. Floor area
limits will be considered.
C
CD
2.16. The City shall evaluate the potential to use
portions of City-owned parking lots and structures
for residents’ parking.
O
H
CD/PW
2.17. The City shall require new housing projects in the
Downtown area to provide residents with
information and services to off-set vehicle needs,
such as providing transit passes, providing space
for hourly car rental services, and providing on-site
bicycle storage facilities.
O
H
CD/PW
2.18. The City shall evaluate the potential for
development fees to fund new parking spaces in
an additional parking structure for residents of new
housing projects in the Downtown core.
O
H
CD/PW
3 Commercial & Industrial Development
3.9. The City shall amend its Zoning Regulations to
implement the changes included in the 2014
General Plan update program.
O
H
CD
3.10. Zoning Regulations and Community Design
Guidelines will include measures such as location
and shielding of mechanical equipment; location of
truck loading, trash collection areas, and
loudspeakers; noise attenuation measures along
property lines to prevent unacceptable noise
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exposure for residential areas or other noise-
sensitive uses.
3.11. The City shall investigate ways to encourage more
cohesion between the existing shopping centers
on Madonna Road.
M
CD/AD
M
3.12. The City shall amend the Community Design
Guidelines to address transitions between
neighborhood commercial development and
adjacent residential neighborhoods.
C
CD
3.13. The City shall review zoning regulations to
consider allowing visitor-service uses in office
zones adjacent to community commercial zones in
the Downtown and adjacent to Monterey Street
between Johnson and Santa Rosa.
O
H
CD
3.14. The City will investigate emerging technologies
and trends to evaluate whether updates to zoning
regulations are needed.
C
CD
3.15. The City shall implement appropriate strategies for
business retention and expansion with a focus on
those providing head-of-household jobs.
O
H
ADM
3.16. The City shall provide zoning incentives and
investigate a program coordinating commercial
and industrial development for the provision of
child care and elder care for workers.
M
CD
4 Downtown
4.24.
The City shall update the Downtown Concept Plan
by 2016 and shall regularly update the plan as
required to address significant changes in or
affecting the Downtown area including the
opportunity for meaningful public input.
C
CD
4.25. The City shall consider features of "A Conceptual
Physical Plan for the City’s Center" (Downtown
Concept Plan) in the approval of projects in the
Downtown, recognizing that the plan is a concept
and is intended to be flexible.
O
H
CD
4.26. The City shall undertake a study of visual
resources within the Downtown core area to
identify potential locations for new public-owned
open places with access to views of important
scenic resources. The City will consider
acquisition of one or more of these open places as
resources permit.
O
H
CD
4.27. The City shall explore the full or partial closure and
re-design of Broad Street between Palm and
Monterey Streets, and Monterey Street between
the two connections with Broad Street to
effectively extend, either permanently or for
special events.
O
H
CD/PW
4.28. The City shall modify zoning regulations to allow
efficiency units and variable density in the
Downtown Core.
C
CD
4.29. The City shall work with the Downtown businesses
and residents, the BID, and Chamber of
Commerce to manage impacts from downtown
drinking establishments, and if necessary, enact
O
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CD/PD
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additional regulations to ensure that the late night
environment in and near Downtown is safe and
pleasant.
4.30. The City shall develop a master plan for San Luis
Obispo Creek in the Downtown area.
H
CD/AD
M
4.31. The City shall prepare an inventory of uses in the
Downtown Core. Particular attention shall be
given to identifying uses at the street level as
these uses directly impact the pedestrian
experience and vibrancy of the Downtown. This
information shall be used to target business
support and attraction.
O
M
CD
4.32. The City shall incorporate into its zoning
regulations specific criteria for evaluating use
permits for bars/taverns, night clubs and late night
drinking establishments.
C M CD
4.33. The City will modify its Community Design
Guidelines to enhance Safety and Crime
Prevention through Environmental Design.
O
M
CD/PD
4.34. The City, working with the Downtown Association,
businesses, landlords, and residents will consider
emergency callboxes at strategic locations in the
Downtown.
M
PD/ADM
4.35. The City working with the Downtown Association,
Downtown businesses and residents shall develop
a program to encourage lighted storefronts and
street frontages throughout the night.
L
PD/ADM
4.36. All specific plans shall identify design features
utilized to enhance public safety.
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L
CD/PD
4.37. The City shall conduct a nighttime safety audit of
key areas of the City to see where deficiencies in
environmental design may exist and should be
improved. Key Areas should be defined as areas
experiencing higher crime than City average by
SLOPD.
M
PD
5 Public & Cultural Facilities
5.3. The City shall continue to work to develop a plan
for meeting additional space needs in the
Downtown. The City shall work with the County to
coordinate site selection, building design,
circulation and utility services, parking, trip
reduction, and funding.
O
H
CD/PW/
ADM
5.4. The City, Cal Poly, and the Foundation for the
Performing Arts will jointly manage the performing
arts center on the Cal Poly campus.
O
M
ADM
5.5. The City shall undertake a study of its surplus
facilities for possible reuse by cultural and non-
profit groups.
M
ADM
5.6. The City shall consider incentives to support
establishment of social service facilities in the city.
M
ADM
6 Resource Protection
6.2.1. The City shall prepare and maintain geographic
information systems-based maps of the city, the
O
M
CD/IT
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urban reserve, and the planning area to guide in
land use designations and decision-making.
6.2.2 The City shall seek to protect resource areas
deemed worthy of permanent protection by fee
acquisition, easement, or other means.
O
M
CD/AD
M
6.5.1. Subdivision approval in hillside planning areas
shall include designation of "sensitive sites," which
shall be subject to architectural review.
O
L
CD
6.5.2. The City shall create and maintain a GIS layer to
accurately document development limit lines as
they are applied in the General Plan.
O
L
CD/IT
6.5.3. Consistent with the Community Design guidelines,
all hillside areas are considered sensitive sites,
and architectural review is required for new
development. The Community Development
Director will screen all proposals to identify any
which do not need architectural review.
O
L
CD
6.7.1. The City shall ensure new development complies
with the City’s flood plain ordinance, setbacks,
specific plans, and design standards to minimize
flood damage and flood plain encroachment.
O
L
CD/PW
6.7.2 The City shall administer the National Flood
Insurance Program standards.
O
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CD/PW
6.7.3 The City shall notify owners of creeks and
adjacent properties in advance of work, and use
care in any needed removal of vegetation.
O
L
PW
6.7.4 The City shall evaluate the feasibility of
establishing a financing district or districts to
address flood concerns in affected areas.
H
ADM/P
W
7 Airport Area
7.13. The City shall continue to work with the County
and regional airlines to assure that regional airline
services are continued and expanded to
adequately serve the needs of the population in
the service area of the airport.
O
M
CD
7.14. The City will annex the Airport area denoted in the
Airport Area Specific Plan and accommodate
incremental development consistent with the
growth management policies, including those
concerning adequacy of resources and services
and development paying its own way.
O
H
CD
7.15. In approving development proposals, the City will
assure that Airport Area properties noted in the
Airport Area Specific Plan secure protection for
any on-site resources identified in the
Conservation and Open Space Element. To help
maintain the greenbelt, properties shall also
secure open space protection for any contiguous,
commonly owned land outside the urban reserve.
If it is not feasible to obtain protection for such
land, fees in lieu of dedication shall be paid when
the property is developed.
O
L
ADM
7.16. The City shall create an Airport Overlay Zone to
reflect the boundaries of the San Luis Obispo
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H
CD
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County Regional Airport Land Use Plan within the
City limits. The purpose of the Airport Overlay
Zone is to codify airport compatibility criteria in
areas for which the City may override the Airport
Land Use Commission determination to ensure
compliance with the requirements of the California
State Aeronautics Act (Cal. Pub. Utilities Code,
Section 21670, et. seq.)
7.17. The City shall update its Zoning Regulations to
address allowable uses and development
standards for areas the City may override a
determination of inconsistency. Zoning regulations
shall be consistent with the requirements of the
State Aeronautics Act, use guidance from the
Caltrans Airport Land Use Planning Handbook and
comply with related state and federal requirements
relating to airport land use compatibility.
C
H
CD
7.18. The City shall review of General and Specific
Plans and Amendments, Zoning ordinance or
amendments, or Building code changes within the
San Luis Obispo County Regional Airport Land
Use Plan boundary. As well as including referral to
the Airport Land Use Commission as specified in
Section 21676(b) of the Public Utilities Code for a
determination of consistency with the San Luis
Obispo County Airport Land Use Plan.
O
M
CD
8 Special Focus Areas
8.3. The City will review and update Ordinance 1130
and involve residents to ensure that neighborhood
concerns are addressed.
O
M
CD
8.4. The City will update the Mid-Higuera Area Plan
for this multi-block commercial area to reflect
current needs and changes that have occurred
since the 2001 plan was adopted.
L
CD
8.5. The Caltrans site is planned for redevelopment
from a Caltrans office and yard complex to a
mixed use development. Commercial uses will be
described under the Tourist Commercial
designation, and redevelopment plans shall
consider the suitability of realignment of the
Madonna/South Higuera intersection. The site
should be developed to serve as a gateway into
the community, with consideration of additional
open space uses, retention and rehabilitation of
the Master List historic structure, and retention of
Heritage Trees on the site. The site shall also
include a park site north of Madonna Road.
M
CD/AD
M
8.6. Lands behind the General Hospital building that
are inside the City’s Urban Reserve line will be
designated as Public (for existing public facility)
and a range of residential uses (Low Density and
Medium Density Residential) and will include the
ability to support residential care, transitional care
use, and other residential uses consistent with the
adjacent areas. The remaining site outside the
C
M
CD/AD
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City’s Urban Reserve line will remain as Open
Space. The City shall seek to secure permanent
protection of the open space outside of the urban
reserve line as part of any development proposal.
8.7. The City shall implement the South Broad Street
Area Plan to create a safe, attractive and
economically vital neighborhood with a mix of
complementary land uses.
O
L
CD
8.8. The Madonna Inn Area includes land west of
Highway 101 on the lower slopes of San Luis
Mountain and the northeast slopes of the foothill
bordering Laguna Lake Park. This area may be
developed further only if surrounding hillsides
including area outside the Urban Reserve Line are
permanently protected as open space.
H
CD/AD
M
8.9. The 38-acre area of the Sunset Drive-in Theater /
Prado Road Area should be further developed only
if flooding can be mitigated without significant
harm to San Luis Obispo Creek. Once flooding,
access, and agricultural preservation issues are
resolved, the area would be suitable for
development as a mixed use development with a
mix of Commercial uses. Permanent open space
shall be required. A full assessment of the Drive-
in Theater site’s potential as a historic resource
will need to be evaluated and addressed. Bicycle
connectivity for this area is an important
component for future development.
H
CD/PW/
ADM
8.10. The Pacific Beach area is planned for
redevelopment from current use as a continuation
school, school office and park uses to commercial
retail uses along Los Osos Valley Road and
Froom Ranch Road and the remaining site
maintained under a Park designation.
M
8.11. Development of Calle Joaquin Auto Sales Area is
suitable for commercial mixed use and other uses
in the Tourist Commercial designation.
Development of the area must address
preservation of and transition to the agricultural
parcels/uses to the northwest; connectivity to the
Dalidio Ranch area; view shed preservation; and
treatment as a gateway to the City visible from
Highway 101.
C
L
CD
8.12. Flooding and access issues must be resolved for
the LOVR Creekside Area prior to developing
Medium High Density Residential. Agricultural
Designations must be maintained along the west
side of site. Compatibility with adjacent residential
areas to the east will be required. Permanent
protection of the adjacent San Luis Obispo Creek
will need to be addressed. The south side of the
site will need to accommodate relocation of LOVR
right-of-way and changes related to the planned
Highway 101 interchange.
O
H
CD/PW
8.13. The Broad Street at Tank Farm Road Site will be
used as a mixed use site and provide a strong O M
CD/PW
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commercial presence at the intersection. Areas
along the creek on the western edge of the site will
be appropriately buffered to provide creek
protections. Attention to connectivity, safety and
comfort of bicycle and pedestrian circulation will be
especially important in the development of this
corner.
8.14. In regards to the Cal Fire / Cal Poly-owned
property on Highway 1, the City shall collaborate
with Cal Poly in updating the Master Plan for
development of campus property. The master
Plan shall address sensitive visual and habitat
resources, circulation issues, impacts to City
services, transition and potential impacts to
surrounding neighborhoods.
O
H
CD
8.15. Future development of the North Side of Foothill
(Bishop Knoll) shall address open space
requirements under Policy 1.13.8 and open space
buffers in accordance with Conservation and Open
Space Element Policy 8.3.2. The steep hillside
should be dedicated as Open Space and
residential lots grouped at the bottom of the hill
closer to Foothill. Development shall provide a
parking lot and trail access to Bishops Peak.
Circulation connectivity shall be provided to Los
Cerros Drive as feasible. Density shall be limited
to 7 units / acre.
L
CD/PW/
ADM
8.16. Future development of the Alrita Properties shall
address hillside planning requirements under
Policy 6.4.7C. Additional analysis will need to
occur in the LUCE EIR to evaluate potential water
service issues, and additional analysis is needed
to determine if the City’s water distribution system
can adequately serve development in this area.
Density shall be limited to 7 units/acre as modified
for slope under the Zoning Ordinance.
O
M
CD/UT
CIRCULATION ELEMENT
2 Traffic Reduction
2.2.1. In coordination with county agencies, the City shall
support efforts in establishing county-wide trip
reduction programs.
O
M
PW
2.2.2. The City shall maintain and where cost effective to
improve a trip reduction plan for City employees.
O
L
PW/HR
2.2.3. The City shall work with employers to establish a
voluntary commuter benefit options program that
provides commute options for employees.
O
L
PW/HR
2.2.4. The City shall continue to work with Cal Poly,
Cuesta College, and other educational institutions
to provide incentives to all students, faculty and
staff to use alternative forms of transportation.
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M
PW
3 Transit Service
3.2.1. The City shall continue to implement the Short
Range Transit Plan (5-year time frame) and
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PW
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coordinate with SLOCOG on implementing the
Long Range Transit Plan (20-year time frame).
3.2.2. The City shall make available bulk rate transit
passes to all groups.
C
PW
3.2.3. The City shall work with the San Luis Obispo
Regional Transit Authority (RTA) to maintain and
expand commuter bus service to and from the City
of San Luis Obispo during peak demand periods.
O
H
PW
3.2.4. The City shall coordinate with the San Luis Obispo
Regional Transit Authority (RTA) to evaluate the
benefits and drawbacks of consolidated service.
O
M
PW
3.2.5. The City shall develop and maintain a
comprehensive marketing and promotion program
to reach individual target audiences.
O
M
PW
3.2.6. The City shall update its Short Range Transit Plan
to evaluate adding mass transit stops at the high
school and the middle school.
C
PW
3.2.7. When evaluating transportation impacts, the City
shall use a Multimodal Level of Service analysis. O L
PW
3.2.8. The City shall work with other agencies to develop
a regional transit center downtown.
O
L
PW
4 Bicycle Transportation
4.2.1. The City shall evaluate a bike share program in
coordination with Cal Poly and other educational
institutions.
O
M
PW
4.2.2. The City shall maintain and regularly update its
Bicycle Transportation Plan as needed to reflect
changes in state law and/or future conditions
consistent with the objectives, policies and
standards of this Circulation Element. Future
revisions to the Bicycle Transportation Plan shall
consider Safe Routes to School
O
H
PW
4.2.3. The City shall work with Cal Poly and Cuesta
College to de-emphasize the use of automobiles
and promote the use of alternative forms of
transportation in their master plans.
O
M
PW
4.2.4. The City shall revise its zoning regulations to
establish and maintain standards for secured
bicycle parking and ancillary facilities.
C
CD/PW
4.2.5. The City should obtain railroad right-of-way and
easements to establish a separated bike path and
pedestrian trail through San Luis Obispo.
O
H
PW
4.2.6. The City shall maintain its GOLD level award
designation as a Bicycle Friendly Community and
pursue a gold level designation.
O
M
PW
4.2.7. The City shall collaborate with SLO County to
coordinate planning and development of county
bikeways to support a regional bicycle network.
O
M
PW
4.2.8. The City should consider expanding and
maintaining its bicycle licensing program to
address bicycle loss, theft, and safety problems.
O
M
PW
5 Walking
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5.2.1. The City shall adopt and regularly update a
Downtown Pedestrian Plan to encourage walking
and to expand facilities that provide pedestrian
linkages throughout the Downtown. The plan shall
include pedestrian safety assessments in
accordance with State and Federal guidelines.
O
H
PW
5.2.2. Areas outside of the Downtown, the City shall
implement its program for installation of a
continuous and connected pedestrian network
giving areas with the heaviest existing or potential
pedestrian traffic priority in funding.
O
H
PW
5.2.3. The City shall continue to implement its annual
program of enhancing existing curbs with ADA
compliant ramps.
O
M
PW
5.2.4. The City shall continue to coordinate with
SLOCOG and local schools to pursue Safe Routes
to School programs and grant opportunities.
O
L
PW
5.2.5. The City shall consider the benefits and costs of
consolidating the Bicycle Transportation Plan with
a citywide Pedestrian Plan.
O
M
PW
6 Multi-Modal Circulation
6.2.1. As funding permits the City shall biennially
complete a traffic count program for pedestrians,
bikes, vehicles and transit to maintain and update
its database of transportation conditions and to
evaluate the state of the transportation system.
O
M
PW
7 Traffic Management
7.2.1. Those traffic programs identified in the Circulation
Element that have the greatest potential to reduce
traffic increases shall have priority for
implementation.
O
H
PW
7.2.3. On a bi-annual basis, as funding permits the City
shall implement an ongoing and comprehensive
transportation monitoring program.
O
H
PW
7.2.4. The City shall regularly, as funding permits,
conduct a travel behavior survey of residents to
estimate their use of different types of
transportation.
O
M
PW
7.2.5. The City shall work with the County to jointly
develop and adopt design and construction
standards for streets within the City's Urban
Reserve.
O
M
PW
7.2.6. The City shall revise its Subdivision Regulations to
include right-of-way and design standards.
O
H
CD/PW
7.2.7. The City shall adopt an access management
policy to control location, spacing, design and
operation of driveways, median openings,
crosswalks, interchanges and street connections
to a particular roadway including navigation routes
to direct traffic to preserve the safety and
efficiency of the transportation system.
O
L
PW/CD
7.2.8. The City shall cooperate with State and regional
agencies in evaluating the effectiveness of high
O
L
PW
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occupancy vehicle (HOV) lanes on State
highways.
7.2.9. The City shall develop and adopt guidelines that
implement Policy 7.1.4 concurrent with the 2015-
17 Financial Plan.
C
PW
9 Street Network Changes
9.2.1. The City will establish building setback lines for
routes listed on Table 5.
O
L
PW
9.2.2. The City shall ensure that changes to Prado Road
(Projects 1, 2, and 19 on Table 5) are
implemented in a sequence that satisfies
circulation demands caused by area development.
Sponsors of development projects that contribute
to the need for the Prado Road interchange or
overpass will be required to prepare or fund the
preparation of a Project Study Report.
O
H
PW
9.2.3. The City shall adopt and regularly update a plan
and standards for the installation and maintenance
of landscaped medians, parkways, signs, utilities,
street furniture, sidewalks and bicycle lanes.
Within the Downtown, street amenities shall be
consistent with the Downtown Pedestrian Plan
design guidelines.
O
H
PW
9.2.4. The City will evaluate complete street designs to
maximize the shared right of way for all users as a
method of achieving an overall objective for the
Conceptual Physical Plan of the City's Center to
improve the pedestrian environment in the
downtown.
O
H
CD/PW
9.2.5. As part of any proposal to further develop the
Dalidio-Madonna Area, the alignment and design
of extensions of Froom Ranch Way connecting
with Prado Road (west of Route 101) shall be
evaluated and established if consistent with the
Agricultural Master Plan for Calle Joaquin
Reserve.
O
H
PW
9.2.6. The City shall promote the creation of
“streetscapes” and linear scenic parkways or
corridors that promote the city’s visual quality and
character, enhance adjacent uses, and integrate
roadways with surrounding districts.
O
M
PW
10 Truck Transportation
10.2.1. Trucks should turn off motors when parked. The
City shall work with the Air Pollution Control
District (APCD) for guidance in establishing
standards that address air and noise pollution from
idling trucks.
O
M
PW
10.2.2. The City's Home Occupation Permit Regulations
should be amended to ensure that commercial
trucks are not used to make regular deliveries to
home occupations in residential areas.
C
CD/PW
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10.2.3. The City shall continue to provide reserved
commercial truck loading zones in appropriate
downtown areas.
O
M
PW
10.2.4. The City shall adopt an ordinance regulating the
movement of heavy vehicles.
L
PW
11 Air Transportation
11.2.1. The City shall work with the County Airport to
encourage the use of quieter and more
environmentally sensitive aircraft.
O
H
ADM
11.2.2. The City shall work with the County Airport to
support the further development of airport facilities
and attract additional passenger airline services.
O
M
ADM
11.2.3. The City shall work with the County Airport to
pursue funding opportunities, such as Airport
Improvement Program grants.
M
ADM
11.2.4. The City shall work with the County Airport Land
Use Commission to complete updates of the
Airport Land Use Plan for the San Luis Obispo
County Airport in regard to significant changes in
noise, adjacent land impacts, and safety zones.
O
M
CD
12 Rail Transportation
12.2.1. The City supports maintaining and increasing daily
train service connecting San Luis Obispo with
points north and south, with departures and
arrivals in the morning, mid-afternoon and
evening.
O
L
PW/AD
M
12.2.2. The City shall support San Luis Obispo Council of
Governments in evaluating the feasibility of
passenger rail service to connect points within the
county.
O
L
PW
12.2.3. The City shall coordinate railroad facility
infrastructure maintenance with the Union Pacific
Railroad and the Public Utilities Commission. In
addition, the City shall work with the Air Pollution
Control District and others to discourage idling
train engines in San Luis Obispo.
O
M
CD
12.2.4. The City shall monitor and respond to changes, or
proposed changes in passenger and freight rail
traffic that may impact the safety and well-being of
residents of the community including the transport
of combustible materials.
O
M
PW
12.2.5. The City shall discourage the transportation of oil
and other combustible hydrocarbons through the
City.
O
L
ADM
13 Parking Management
13.2.1. The City shall maintain and regularly update its
Access and Parking Management Plan (every 5
years) including parking demand reduction
strategies and consider emerging best practices.
O
M
PW
13.2.2. The City shall regularly monitor the use of public
parking in the downtown.
O
M
PW
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13.2.3. The City shall coordinate with SLOCOG during
periodic updates to SLOCOG’s Park and Ride Lot
Development report to evaluate the need for and
location of park-and-ride lots to serve commuters.
O
L
PW
13.2.4. The City shall only approve construction of
additional public parking structures after
considering the findings and results of a parking
supply and demand study.
O
H
PW
13.2.5. The City shall continue to work with the Downtown
Association to evaluate the use of curb space in
the downtown and identify opportunities for
creating additional parking spaces.
O
M
PW
13.2.6. The City shall continue to operate the downtown
trolley as a parking management tool to reduce
congestion.
O
H
PW
14
Neighborhood Parking Management
14.2.1 Upon request from residents or other agencies,
the City will evaluate the need for neighborhood
parking permit programs or other parking
management strategies in particular residential
areas.
O
L
PW
14.2.2. The City will investigate the feasibility and
desirability of establishing parking financing
districts.
O
H
PW
15 Scenic Roadways
15.2.1. The City will participate with Caltrans, the County
and other cities to establish a program for
enhancing the visual character of the Highway 101
corridor consistent with the US 101 Aesthetic
Study for San Luis Obispo County.
O
M
PW
15.2.2. The City shall revise its Community Design
Guidelines to incorporate concern for the
protection of views and vistas from scenic
roadways.
O
H
CD
15.2.3. The City shall adopt a street corridor landscaping
plan for scenic roadways. Indigenous species will
be used unless shown to be inappropriate.
O
M
PW
15.2.4. Both the City and the County should enforce an
amortization program for the removal of billboards
along scenic roadways.
O
M
CD
16 Circulation Element Implementation, Program
Funding and Management
16.2.1 Transportation Work Program shall be regularly
updated as part of the City Financial Plan, and
must be consistent with the Circulation Element.
Will cover a five-year period, shall be updated to
include modified projects and costs if warranted.
O
M
PW
16.2.2 The City shall update its multimodal transportation
impact fee ordinance in accordance with State
Law (AB1600).
C
CD
16.2.3 Prior to implementation of a project identified in
this element, the City shall reevaluate its need and
include an analysis of alternatives that can achieve
O
M
PW
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the desired results at lower costs and with less
environmental impacts.
16.2.4. Major development proposals to the City will
include displays of the proposal's interfaces with
nearby neighborhoods, and indicate expected
significant qualitative transportation effects on the
entire community.
O
L
PW/CD
HOUSING ELEMENT
1 Safety
1.4. Provide financial assistance for rehabilitation of
affordable rental and ownership units using
Federal, state and local housing funds
O
M
CD
1.5. Continue Code enforcement to expedite removal
of illegal/unsafe dwellings.
O
M
CD
1.6. Enact a rental inspection program to improve
condition of housing stock.
C
CD
1.7. Continue to support local & regional solutions to
homelessness by funding programs such as
Maxine Lewis and Prado Center.
O
H
CD/AD
M
1.8. Create educational campaign to encourage
owners of older residences to conduct seismic
upgrades
L
CD
2 Affordability
2.5. Continue to manage the Affordable Housing Fund
to serve as a sustainable resource for supporting
affordable housing development and as a source
of both grant funding and below-market financing
for affordable housing projects.
O
M
CD
2.6. Continually review existing and proposed building,
planning, engineering and fire policies and
standards as housing developments are reviewed,
which determine whether changes are possible
that could assist the production of affordable
housing.
O
M
CD
2.7. Continue to implement existing procedures that
speed up the processing of applications,
construction permits, and water and sewer service
priorities for affordable housing projects
O
H
CD
2.8. Continue to pursue outside funding sources for
City impact fees so that new dwellings that meet
the City’s affordable housing standards can
mitigate their facility and service impacts.
O
M
CD
2.9. Maintain exemptions for extremely-low, very-low
and low-income households.
O
H
CD
2.11. Continue to assist with issuance of bonds, tax
credit financing, loan underwriting or other
financial tools to help develop or preserve
affordable units through various programs.
O
M
CD
2.12. Consider incorporating HOA fees and a standard
allowance for utilities in the calculation for
affordable rents and home sales prices.
M
CD
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2.13. In conjunction with the Housing Authority and local
housing agencies, continue to preserve at-risk
units by providing technical assistance and
education to tenants, property owners and the
community.
O
M
CD
2.14. In conjunction with local housing providers and the
local residential design community, continue to
provide technical assistance as requested by the
public, builders, design professionals and
developers regarding design strategies to achieve
affordable housing.
O
M
CD
2.15. Evaluate the Inclusionary Housing Ordinance
requirements and the effect of Table 2A on the
City’s ability to provide affordable housing in the
proportions shown in the Regional Housing Needs
Allocation, per Policy 2.4.
M
CD
2.16. The City will evaluate and consider including a
workforce level of affordability in its Affordable
Housing Standards to increase housing options in
the City for those making between 121 percent
and 160 percent of the San Luis Obispo County
median income.
O
M
CD
2.17. Continue to consider increasing residential
densities above state density bonus allowances for
low, very low and extremely low income
households.
O
M
CD
3 Housing Conservation
3.8. Adopt an ordinance that implements policy 3.2 to
discourage removal or replacement of affordable
housing.
L
CD
3.9. Through collaboration of agencies offering
rehabilitation programs, the city will use State,
Federal, or housing funds to correct unsafe and
unsanitary housing conditions, improve
accessibility and energy efficiency.
O
L
CD
3.10. Continue to encourage the creation of dwellings in
the Downtown Core (C-D Zone) and the
Downtown Planning Area by continuing the "no net
housing loss" program.
O
M
CD
3.11. Continue to identify residential properties and
districts eligible for local, State or Federal historic
listing in accordance with guidelines and standards
to help property owners repair, rehabilitate and
improve properties.
O
M
CD
3.12. Annually monitor and track affordable housing
units at-risk of being converted to market rate
housing, to provide resources to support the
Housing Authority, and local housing agencies.
O
H
CD
3.13. Work with non-profit organizations, faith-based
organizations, or the Housing Authority of the City
of San Luis Obispo, to encourage rehabilitation of
residential, commercial or industrial buildings.
O
M
CD
4 Mixed-Income Housing
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4.5. Review new development proposals for
compliance with City regulations and revise
projects or establish conditions of approval to
implement the mixed-income policies.
O
L
CD
4.6. Consider amending the City’s Inclusionary
Housing Ordinance and Affordable Housing
Incentives to require that affordable units in a
development be of similar number of bedrooms,
character and basic quality.
O
M
CD
5 Housing Variety and Tenure
5.5 Review new developments for compliance with
City regulations and revise projects or establish
conditions of approval as needed to implement the
housing variety and tenure policies.
O
L
CD
6 Housing Production
6.11. Maintain the General Plan and Residential Growth
Management Regulations (SLOMC 17.88)
exemption for new housing in the Downtown Core
that is enforce ably restricted for extremely-low,
very low, low- and moderate income households.
O
L
CD
6.12. Continue to allow flexible parking regulations for
housing development, especially in the Downtown
Core and possibly use city parking facilities by
Downtown residents, where appropriate
guarantees limit occupancies to persons without
motor vehicles or who provide proof of reserved,
off-site parking.
O
M
CD
6.13. Continue to develop incentives to encourage
additional housing in the Downtown Core,
particularly in mixed-use developments. Explorer
projects density based on average unit size to
encourage development of smaller efficiency units.
O
M
CD
6.14. Specific plans for any new expansion area
identified shall include R-3 and R-4 zoned land to
ensure sufficient land is designated at appropriate
densities to accommodate the development of
extremely low, very-low and low income dwellings.
These plans shall include sites suitable for
subsidized rental housing and affordable rental
and owner-occupied dwellings, and programs to
support the construction of dwellings rather than
payment of in-lieu housing fees. Such sites shall
be integrated within neighborhoods of market-rate
housing and shall be architecturally compatible
with the neighborhood.
O
M
CD
6.15. Consider General Plan amendments to rezone
commercial, manufacturing or public facility zoned
areas for higher-density, infill or mixed use
housing where land development patterns are
suitable and impact to Low-Density Residential
areas is minimal.
O
H
CD
6.16. Continue to provide resources that support the
SLO County Housing Trust fund’s efforts to
provide below-market financing and technical
O
M
CD
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assistance to affordable housing developers to
increase affordable housing production in the City
of San Luis Obispo.
6.17. Encourage residential development through infill
development and densification within City Limits
and in designated expansion areas over new
annexation of land.
O
M
CD
6.18. Seek opportunities with other public agencies and
public utilities to identify, surplus land for housing,
to convert vacant or underutilized public, utility or
institutional buildings to housing.
O
M
CD
6.19. Continue to incentivize affordable housing
development with density bonuses, parking
reductions, development incentives, and City
financial assistance.
O
M
CD
6.20. Continue to financially assist in the development of
affordable housing to extremely low, very-low, low-
or moderate income households using State,
Federal and local funding sources, while giving
priority to projects that result in the maximum
housing benefits for the lowest household income
levels.
O
H
CD
6.21. Actively seek new revenue sources, including
State, Federal and private/non-profit sources, to
assist affordable housing development for different
income households and first- time homebuyers.
O
M
CD
6.22. Continue to exempt the rehabilitation or
remodeling of 4 dwellings up to 1200 square feet
each from Architectural Review Commission
review. New multi-unit housing may be allowed
with “Minor or Incidental” or staff level architectural
review, unless located on a sensitive or historically
sensitive site.
O
L
CD
6.23. Assist in the production of affordable housing by
identifying vacant or underutilized City-owned
property suitable for housing, and dedicate public
property, where feasible and appropriate for such
purposes.
C
L
CD
6.24. Community Development staff will proactively
provide information for properties suitable for
housing as identified in the Land Use and Housing
Elements.
O
L
CD
6.25. Evaluate and consider amending the General Plan
to designate the 46 acres associated with the
former County General Hospital as a “Special
Considerations” zone, suitable for housing
development on areas of the site of less than 20
percent average slope, provided that open space
dedication and public improvements are part of the
project.
O
L
CD
6.26. Continue to update the Affordable Housing
Incentives (Chapter 17.90, SLOMC) and Zoning
Regulations to ensure density bonus incentives
are consistent with State Law.
C
CD
6.27. Evaluate and consider increasing the residential
density allowed in the Neighborhood-Commercial
C
CD
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(CN), Office (O) and Downtown Commercial (CD)
zoning districts.
6.28. Evaluate how lot patterns (i.e. size, shape, slope)
in the City’s multi-family zones affect the City’s
ability to meet housing production policies.
C
CD
6.29. Continue to pursue incentives to encourage
development of Secondary Dwelling Units.
C
CD
6.30. Consider adopting Subdivision and Zoning
Regulation changes to support small lot
subdivisions, ownership of bungalow court
developments, and eliminate the one-acre
minimum lot area for PD overlay zoning, and other
subdivision design alternatives.
O
M
CD
6.31. Consider scaling development impact fees for
residential development based on size, number of
bedrooms, and room counts.
C
CD
6.32. Continue to submit annual Housing Element
progress reports to the State Department of
Housing and Community Development per
Government Code Section 65400.
O
L
CD
7 Neighborhood Quality
7.9. Continue to implement strategies, as early
notification through electronic media, website
improvements, neighborhood outreach meetings,
to ensure residents are aware of and able to
participate in planning decisions affecting their
neighborhoods.
O
M
CD/AD
M
7.10. Continue to work with neighborhood groups and
individuals to address concerns, problems, trends
and opportunities for improvements of specific
neighborhoods.
O
M
CD
7.11. Continue to fund neighborhood improvements,
including sidewalks, traffic calming devices,
crosswalks, parkways, street trees and street
lighting to improve aesthetics, safety and
accessibility.
O
H
PW
7.12. Continue to develop and implement neighborhood
parking strategies, including parking districts, to
address the lack of on- and off-street parking in
residential areas.
O
M
PW
7.13. Continue the City’s Neighborhood Services and
proactive enforcement programs to support
neighborhood wellness.
O
M
PD
8 Special Housing Needs
8.13. Continue to provide resources that support local
and regional solutions to meeting the needs of the
homeless and displaced women and children and
other agencies
O
M
CD
8.14. Continue the mobile home rent stabilization
program to minimize increases in the cost of
mobile home park rents.
O
L
CD
8.15. Continue to look for opportunities in specific plan
areas suitable for tenant-owned mobile-home
parks, cooperative or limited equity housing,
O
M
CD
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manufactured housing, self-help housing, or other
types of housing that meet special needs.
8.16. Advocate developing more housing and
refurbishing campus housing at Cal Poly
University.
O
M
CD
8.17. Work with Cal Poly University Administration to
secure designation of on-campus fraternity/sorority
living groups.
O
L
ADM
8.18. Jointly develop and implement a student housing
plan and continue to support "good neighbor
programs" with Cal Poly State University, Cuesta
College and City residents, and improve
communication and cooperation between the City
and the schools.
O
M
CD/AD
M
8.19. Provide public educational information at the
Community Development Department public
counter on universal design concepts for new and
existing residential dwellings.
C
CD
8.20. Continue to allow the establishment of transitional
and supportive housing in all zoning districts
where residential uses are allowed.
C
CD
8.21. Continually look for (land, retail or commercial
space, motels, apartments, housing units, mobile
home parks) that can be acquired and converted
to affordable permanent housing and permanent
supportive housing for homeless persons and
families.
O
L
CD
8.22. Consider an overlay zone to existing and future
mobile home and trailer park sites to provide
additional requirements, such as rent stabilization
and a mobile home park conversion ordinance.
M
CD
8.23. Encourage the creation of housing for persons
with developmental disabilities. The City will seek
grant opportunities for housing construction and
rehabilitation.
O
L
ADM/PD
8.24. Continue to coordinate with the County, social
services providers and non-profit organizations for
delivery of existing, improved and expanded
services, including case management, drug,
alcohol, detoxification, and mental health services.
O
L
CD
8.25. Continue to engage Homeless Services Oversight
Council and Friends of Prado Day Center to
identify, evaluate, and implement strategies to
reduce the impacts of homelessness.
O
L
CD
9 Sustainable Housing, Site, and Neighborhood
Design
9.7. Continue to educate planning and building staff
and citizen review bodies on energy conservation
issues, including the City’s energy conservation
policies and Climate Action Plan. Staff shall work
with applicants to achieve the City’s energy
conservation goals.
O
M
ADM
9.8. Continue to provide long-term solar access for
new or remodeled housing and adjacent
properties, consistent with historic preservation
O
L
CD
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guidelines, and revise regulations found to be
inadequate.
9.9. Continue to implement the Water Quality Control
Board’s “Post-Construction Storm water
Management Requirements for Development
Projects in the Central Coast Region”, to reduce
the amount of impermeable surface.
O
L
CD
9.10 Implement Climate Action Plan programs to
increase production of “green” housing units and
projects and require sustainable and/or renewable
materials, water and energy technologies.
O
M
ADM/C
D
9.11. Continue to promote building materials reuse and
recycling in site development and residential
construction, including flexible standards for use of
salvaged, recycled, and “green” building materials.
Continue the City’s construction and demolition
debris recycling program (Chapter 8.05 - Municipal
Code)
O
L
CD
9.12. Consider incentivizing dwelling units to a minimum
size of 150 square feet, consistent with the
California Building Code, by reduced impact fees
and property development standards.
C
CD
9.13. Consider participating in financing programs for
sustainable home improvements such as solar
panels, heating and cooling systems, water
conservation and energy efficient windows.
C
CD
10 Local Preference
10.3. Continue to work with the County of San Luis
Obispo for any land use decisions that creates
significant expansion of employment in the
unincorporated areas adjacent to the City to
mitigate housing impacts on the City.
O
M
CD
10.4. Encourage residential developers to sell or rent
their projects to those residing or employed in the
City first before outside markets.
O
L
CD
10.5. Work with Cal Poly to address the link between
enrollment and the expansion of campus housing
programs at Cal Poly University to reduce
pressure on the City's housing supply.
O
M
CD
10.6. Work with other jurisdictions to advocate for State
legislation that would: 1) provide funding to help
Cal Poly University provide adequate on-campus
student housing, and 2) allow State universities
and community colleges to enter public-private
partnerships to construct student housing.
O
M
CD
11 Suitability
11.3. The City will continue to ensure the ability of legal,
non-conforming uses to continue where new
development is proposed.
O
L
CD
NOISE ELEMENT
1.12. Review public and private development proposals
for Noise Element conformance.
O
L
CD
Packet Pg. 558
Item 15
GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
- 28 -
1.13. Require noise studies early in the review process
when project noise may exceed allowable limits.
O
L
CD
1.14. Assure that noise mitigation measures are carried-
out during construction.
O
L
CD
1.15. Monitor compliance with mitigation measures after
project completion.
O
L
CD
1.16. The city will work with the California Highway
Patrol and the County Sherriff`s Office to enforce
loud vehicle exhaust systems and sound
amplification systems.
L
PD
1.17. The city will purchase and pursue alternatives to
the use of noisy equipment for city operations. O L
ADM
1.18. The City will periodically review and update the
Noise Element.
H
CD
1.19. The City will make the Noise Guidebook available
to anyone involved in project design and review.
C
M
CD
CONSERVATION AND OPENS SPACE
ELEMENT
2 Air
2.3.1. Employ best available practices in City operations.
O M
ADM
2.3.2. Consult with APCD on significant development
proposals. O L
CD
2.3.3. Promote alternative transportation/land use
strategies.
O
L
CD
2.3.4. Provide alternative transportation incentives.
O M
PW
2.3.5. Amend the General Plan as needed to achieve air
quality goals. O M
CD
3 Cultural Heritage
3.6.1. Promote public awareness of cultural resources
through activities, including tours & clean-up
events. O M
ADM
3.6.2. Provide financial assistance and incentives for
historic preservation. O H
CD/AD
M
3.6.3. Expand ARC guidelines to address specific
guidance for new buildings in historic districts. C
CD
3.6.4. Prepare post-disaster historic preservation
standards.
M
CD
3.6.5. Assist the CHC in preparing archaeological
resource guidelines. C
CD
3.6.6. Provide cultural resource awareness public
educational programs, which display artifacts
which illuminate past cultures.
C
ADM
3.6.7. Encourage partnering for preservation. O L
CD
3.6.8. Promote adaptive reuse of historic buildings. O L CD
Packet Pg. 559
Item 15
GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
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3.6.9. Rehabilitate and maintain City-owned adobes and
historic structures.
O
H
ADM
3.6.10. Implement Cultural Heritage Committee
Whitepaper.
C
L
CD
4 Energy
4.6.1 Promote efficient City energy use. O
M
ADM
4.6.2 Manage City operations for energy self-reliance. O
H
ADM
4.6.3. Promote Sustainable design in City facilities. O
M
ADM
4.6.4. Reduce obstacles to energy conservation.
O M
CD
4.6.5. Encourage sustainable employee commuting
practices. O L
HR
4.6.6. Promote energy conservation education.
O M
ADM
4.6.7. Administer State Building Energy Standards.
O L
CD
4.6.8. Encourage energy-efficient design in private
development projects. O L
CD
4.6.9. Address solar access in new development.
O M
CD
4.6.10. Retrofit City facilities for energy savings.
O H
PW/UT
4.6.11. Seek financial assistance for energy efficiency
improvements in City facilities. O L
PW/UT
4.6.12. Monitor energy use in City facilities and prepare
biannual report for City Council. O M
ADM
4.6.13. Prepare energy conservation plan for City
facilities.
M
ADM
4.6.14. Adopt green building standards. O M CD
4.6.15. Consider City-owned green energy utility. C H ADM
4.6.16. Promote technology and energy conservation
businesses.
O
L
ADM
4.6.17. Require solar power for new dwellings. O L CD
4.6.18. Seek Air Pollution Control District support for
maintaining air quality. O L
CD
5 Materials
5.5.1. Use materials efficiently in City operations
(computer technology and copying)
O
M
ADM
5.5.2. Promote City materials reuse and recycling.
O M
ADM/UT
5.5.3. Coordinate waste reduction and recycling efforts. O M ADM
5.5.4. Use materials with reduced environmental impacts
in City operations and facilities. O M
ADM
5.5.5. Maintain inventory of recycling businesses and
services.
O
L
UT
Packet Pg. 560
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GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
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5.5.6. Expand City public information efforts on energy
and materials conservation goals. O L
ADM
5.5.7 Encourage energy efficiency and Green Building
in new development. O L
CD
5.5.8. Ensure new development projects include space
for materials recycling/storage.
O
L
CD
7 Natural Communities
7.7.1. Protect natural communities. O M ADM
7.7.2. Implement the Natural Communities policies from
program.
C
ADM
7.7.3. Participate in any area-wide planning efforts such
as Habitat Conservation Plans under the U.S.
Endangered Species Act.
O
L
ADM
7.7.4. Participate in environmental review conducted by
other agencies for projects that could affect natural
communities in the San Luis Obispo planning
area. O L
CD/AD
M
7.7.5. Develop and maintain current benchmark
information on habitat types and conditions. O M
ADM
7.7.6. Replace invasive non-native vegetation with native
vegetation.
O
M
ADM
7.7.7. Preserve ecotones through changes to or
conditions on new development.
O
L
ADM
7.7.8. Protect wildlife corridors through changes to or
conditions on new development. O L
ADM/FD
7.7.9. Adopt creek setback requirements.
C
CD
7.7.10. Implement natural communities’ policies through
the Tree Committee. O
L
PW
8 Open Space
8.7.1. Protect open space resources.
O
H
ADM &
P&R
8.7.2. Enhance and restore open space.
O H
ADM &
P&R
9 Views
9.3.1. Locate and design public facilities and utilities
consistent with General Plan. O
M
PW
9.3.2. Update community design guidelines to address
views from scenic routes. O M
CD
9.3.3. Maintain and apply Sign Regulations consistent
with the General Plan.
O
M
CD
9.3.4. Conduct environmental and architectural review
consistent with General Plan. O M
CD
9.3.5. Require visual assessments for projects affecting
important scenic resources and views from public
places. O L
CD
9.3.6. Determine that view blockage along a scenic
roadway is a significant impact.
O
L
CD
Packet Pg. 561
Item 15
GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
- 31 -
9.3.7. Review development in unincorporated County for
consistency with General Plan.
O
L
CD
9.3.8. Advocate State and County scenic highway
designations and protective programs for scenic
routes connecting San Luis Obispo with other
communities.
O
L
CD
9.3.9. Place underground existing overhead utilities, with
highest priority for scenic roadways, entries to the
City, and historic districts. O L
PW
9.3.10. Prohibit billboards. C
CD
9.3.11. Remove existing billboards through amortization,
conditions of development approval and grants for
enhancing open space and transportation
corridors.
O
M
ADM
9.3.12. Preserve the Morros, in cooperation with other
government agencies, non-profit land trusts and
property owners. O M
ADM
9.3.13. Establish and maintain a program of describing
and monitoring view sheds within and adjacent to
City limits to establish a photographic baseline of
visual setting. M
ADM
10 Water
10.3.1. Efficient water use O H UT
10.3.2. Maintain Water quality O H UT
SAFETY ELEMENT
8 Hazardous Trees
8.1. Identify and maintain or remove hazardous trees
for City property and assist property owners. O M
PW
8.2.5.B Review emergency response plans of utilities and
transportation agencies. O
L
FD
9 Avoiding and Preparing for Emergencies in
General
9.2. Maintain and annually update emergency
response plan. O M
FD
9.3 Evaluate fire-flow and identify deficiencies.
C
UT/FD
9.3.A. Meet response-time objective of four minutes. O
H
FD
9.3.B. Set response-time objective for Public Works. C PW
9.3.C Set response-time objective for Utilities. C UT
9.4.A. Train fire fighters, police, building inspectors,
public works, & utilities staff. O M
FD
9.4.B. Train building & planning staff in lessons from
previous disaster areas. O L
CD/FD
9.4.C. Conduct non-nuclear disaster-response exercises.
O L
FD
Packet Pg. 562
Item 15
GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
- 32 -
9.5. Obtain information about specific location & type of
fire & toxic hazards. O
L FD
9.6.A. Participate in periodic regional disaster-response
drills.
O
L
HR/FD
9.6.B. The city will review the hazard assessment studies
and emergency response plans of utilities and
transportation agencies. L
FD
9.6.C. Work w/CalTrans on hazardous materials
approved routes and related safety precautions. O L
FD
9.7. Establish emergency operation center in Fire
Station 1 and backups sites. O M
FD
9.8. Expand and keep current safety-related
information. O L
FD
9.9. Keep Multi-hazard Emergency Response Plans
current.
O
L
FD
9.10. Work with other jurisdictions on mutual-aid &
automatic-aid agreements.
O
L
FD
9.11. Prepare for post-disaster recovery. O M FD
9.15.A. Develop program to familiarize residents with fire
hazards and appropriate responses.
O M
FD
9.15.B. Promote efforts of the Fire Safe Council. O
L
FD
9.15.C. Continue CERT training program.
O M
FD
9.15.D. Support education programs for lower grades to
teach fire hazards.
O
M
FD
9.16. Help organizations that provide emergency
outreach & education. O L
FD
9.17. Encourage & participate in individual home
inspection programs. O M
FD
9.19.A. Identify & evaluate facility hazards for City owned
property. C
PW
9.19.B Establish routine code inspections for commercial,
industrial, public-assembly, & group housing.
C
CD
9.19.C. Establish complaint-based code compliance for all
buildings.
C
CD
9.19.D Implement City-adopted program on Unreinforced
masonry buildings. C
CD
9.19.E. Provide outreach program for earthquake bracing
of wood-frame buildings.
O
L
CD
9.20. Administer zoning, subdivision, & Architectural
standards consistent with police & fire
recommendations.
O
L
CD
9.21. Fire, police, public works, & utilities review
development applications for safety objectives.
O
L
CD
9.22.A Maintain & administer building regulations in
conformance with State requirements.
O L
CD
9.33.B. Maintain & administer fire regulations in
conformance with State requirements.
O
L
FD
Packet Pg. 563
Item 15
GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
- 33 -
9.23. Conduct fire & hazardous materials inspections in
commercial, industrial, & multifamily buildings. O M
FD
PARKS AND RECREATION ELEMENT
3 Parks and Recreation Facilities
3.14.2. Partner with schools and other joint users to
renovate existing sports fields.
O
M
P&R
3.14.5. As space becomes available, additional fields will
be added in the vicinity of Damon-Garcia Sports
Complex.
O
H
P&R
3.16.2. Acquire property and construct a community
center.
H
P&R
3.16.3. Update & improve indoor facilities.
O H
P&R
3.17.1. Implement the revised Laguna Lake Park Master
Plan.
O
H
P&R
3.18.1.1. Implement the revised Sinsheimer Park Master
Plan.
O
H
P&R
3.18.1.2. Construct a therapy pool at the SLO Swim
Center.
C
P&R
3.19.1. Continue the Playground Equipment Replacement
Program.
O
H
P&R
3.19.2. Pursue joint use of SLO High School swimming
pool.
C
P&R
4 Parks and Recreation Activities
4.2.2.1. Regularly evaluate demand and need and modify
as appropriate.
O
M
P&R
4.2.2.2. Conduct periodic public evaluations of services. O
L
P&R
4.2.2.3. Regularly publicize recreational opportunities. O
L
P&R
4.2.2.4. Consider needs of underserved groups. O
M
P&R
4.2.4. Avoid offering recreation activities classes or
activities that unnecessarily duplicate commercial
programs.
O
L
P&R
4.2.8. Collaborate with groups providing high risk
programs in open space areas.
O
M
P&R
4.3.2.1. Recruit at-risk youth to participate in activities. O L P&R
4.3.2.2. Collaborate with other agencies in serving at-risk
youth.
O
L
P&R
4.3.3.1. Evaluate services to determine benefits O
L
P&R
4.3.3.2.
Accommodate schedules of working people.
O
L
P&R
4.3.3.3.
Prioritize new activities from results of public input.
O
M
P&R
Packet Pg. 564
Item 15
GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
- 34 -
4.3.6.
Continue to maintain publicly accessible open
space trails.
O
M
ADM/
5 Financing
5.1.1. Develop collaborative fee exchange with
S.L.C.U.S.D.
C
P&R
6 Implementation
6.0.1. Continue to improve existing fields. O
H
P&R
6.0.2. Transition from multi-use to single use fields. O
H
P&R
6.0.3. Develop joint use agreements with other agencies
in addition to schools.
C
P&R
6.0.4. Develop new programs to not conflict with existing
field use.
O
L
P&R
6.0.5. Ensure athletic fields are provided within new
residential development.
O
M
P&R
6.0.6. Consider additional fields for needs not addressed
with Damon Garcia fields.
C
P&R
6.1.1. Upgrade Recreation Center to provide interim
community center.
C
P&R
6.1.2. Secure funding for a therapy pool to be located at
the SLO Aquatics Center.
L
P&R
6.1.3. Consider revenue enhancement to fund new
community center.
O
L
P&R
6.2.1. Construct mini-parks at Purple Sage Drive and at
Marsh & Santa Rosa.
C
P&R
6.2.2. Support neighbor efforts to develop mini-parks. O
M
P&R
6.3.1. Acquire open space property to construct trails. O
H
P&R
6.3.2. Use a variety of techniques to acquire open space. O M P&R
6.3.3. Design new parks so they can connect to
recreational trails.
O
H
P&R
6.3.4. Connect existing parks & open space with trails. O
H
P&R
6.4.1. Schedule "unmet needs" projects through the CIP
process.
O
L
P&R
6.4.2. Look for alternatives to address unmet needs
projects.
O
L
P&R
6.5.1. Complete implementation of existing master plans,
such as those for Sinsheimer and Laguna Lake
Parks.
O
H
P&R
WATER AND WASTEWATER ELEMENT
A 2 Water Management (Multi-Source Water
Supply)
A 2.3.1 Work cooperatively on regional water issues &
resource planning.
O
L
UT
Packet Pg. 565
Item 15
GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
- 35 -
A 2.3.2. Participate with SLO County in Integrated
Regional Water Management Plan.
O
L
UT
A 2.3.3. Participate with other appropriate agencies in
controlling invasive species which could impact
water supplies.
O
M
UT
A 2.3.4. Work with agencies to minimize water quality
impacts.
O
M
UT
A 2.3.5. Continue to work with SLO County-operation of
Salinas Reservoir & Nacimiento project.
O
L
UT
A 2.3.6. Complete sanitary surveys for Salinas & Whale
Rock reservoirs every five years.
O
M
UT
A 3 Water Management (Water Resource
Availability)
A 3.3.1. Provide water resource update to Council as part
of annual report.
O
L
UT
A 3.3.2. Update safe annual yield computer model for
Salinas & Whale Rock reservoirs following drought
periods.
C
UT
A 3.3.3. Monitor ongoing research for potential long term
impacts to water supplies from climate change.
O
M
UT
A 4 Water Management (Siltation)
A 4.3.1. Work with other agencies to implement Best
Management Practices to reduce siltation.
O
L
UT
A 4.3.2. Continue education & outreach to owners in
watersheds to reduce siltation.
O
L
UT
A 4.3.3. Consider periodic siltation studies at each
reservoir.
M
UT
A 4.3.4. Provide annual update on siltation to Council. O L UT
A 5 Water Management (Water Supply Accounting
and Demand Projection)
A 5.3.1. Provide annual update on water supply & demand
projections to Council.
O
L
UT
A 5.3.2. Conduct periodic updates to water development
impact fees.
O
H
UT
A 5.3.3. Prepare Urban Water Management Plan every five
years.
C
M
UT
A 5.3.4. Prepare water supply assessments for large new
developments.
O
M
UT
A 5.3.5. Analyze water efficiency program impacts to
overall reduction in water demand.
O
M
UT
A 6 Water Management (Water Conservation)
A 6.3.1 Work with SLO County water agencies to identify
cooperative water efficiency measures.
O
L
UT
A 6.3.2. Participate in state & regional water conservation
efforts.
O
L
UT
A 6.3.3. Implement Water Shortage Contingency Plan as
required.
O
M
UT
A 7 Water Management (Recycled Water)
A 7.3.1. Expand recycled water distribution system. O
H
UT
Packet Pg. 566
Item 15
GENERAL PLAN PROGRAM IMPLEMENTATION STATUS
- 36 -
A 7.3.2. Review development projects to ensure recycled
water is used appropriately.
O
L
UT
A 7.3.3. Present annual recycled water use as part of
annual report to Council.
O
L
UT
A 7.3.4. Consider delivery of recycled water to customers
outside City limits.
C
UT
A 7.3.5. Continue to explore potable reuse consistent with
statewide regulations.
O
L
UT
B 2 Wastewater Management (Wastewater Service)
B 2.3.1. Expand capacity in collection system and Water
Reclamation Facility.
O
H
UT
B 2.3.2. Evaluate wastewater flows of proposed projects. O M UT
B 2.3.3. Conduct periodic updates to wastewater
development impact fees.
O
H
UT
B 3 Wastewater Management (Wastewater
Treatment)
B 3.3.1. Prepare & implement Water Reclamation Facility
master plan.
O
H
UT
B 3.3.2. Work cooperatively on regional water quality
issues.
O
L
UT
B 4 Wastewater Management (Collection System)
B 4 3.1. Investigate cost-effective methods for reducing
infiltration and inflow to the wastewater collection
system.
O
L
UT
B 4.3.2. Provide education and outreach regarding
infiltration and inflow.
O
L
UT
B 4.3.3. Support retrofit of sewer laterals to reduce
infiltration and inflow.
O
M
UT
B 4.3.4. Update Sewer System Management Plan to
maintain its applicability.
O
M
UT
B 4.3.5. Maintain master plans for wastewater service to
developing areas of City.
O
M
UT
B 4.3.6. Review development proposals to ensure
necessary infrastructure is in place.
O
L
UT
B 4.3.7. Provide a Pretreatment Program pursuant to
Clean Water Act.
O
M
UT
Packet Pg. 567
Item 15
MID-HIGUERA AREA ENHANCEMENT PLAN
- 37 -
STATUS OF ORCUTT AREA SPECIFIC PLAN IMPLEMENTATION
PROGRAMS
Status as of October 2018
Complete Difficulty to
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
1 2.2.2a Development subject to 20 ft setback from
creek.
O CD
2 2.2.2b Development subject to 30 ft. setback from
wetland habitat
O
CD
3 2.2.2c Development subject to 20 ft. setback from
riparian/wetland mitigation areas & fenced.
O
CD
4 2.2.3a Create 1.94 acres of wetland & 2.76 acres of
riparian enhancement.
O ADM
5 2.2.3b Allow filling of .78 acres of isolated agricultural
wetland seeps on hill.
O ADM
6 2.2.4a Allow .12 acres of creek fill for 3 bridge
crossings.
O ADM
7 2.2.4b All creek channel modifications to comply with
Drainage Design Manual & any other required permits
from Army Corps or Fish and Game.
O
CD
8 2.2.5a Plant native species between trails/rec features
and wetland/riparian habitat
O ADM
9 2.2.5b Provide educational signage re: wetland &
creek habitats on public trails and OS.
O
ADM
10 2.2.9a City will manage Righetti Hill open space in
accordance with City Standards.
O
ADM
11 2.2.9b City will provide & maintain access to Righetti
Hill. City will development a management plan
consistent with COSE.
O ADM
12 2.2.10a Landowner maintains right to existing
structures & will manage parcel consistent with Open
Space standards.
O
CD
13 2.3.3a 16.3 acres of active & passive parkland to be
provided with development. City will pursue 4 acres of
joint use with SLCUSD with new school development
nearby.
O P&R
14 2.3.3b 12-acre park to be developed: 10 acres to be
dedicated w/Phase I development
O
P&R
15 2.3.3c 2.5 acre junction park to be developed when
impact fees are available.
O
P&R
16 2.3.3d 1.5 acres of linear park to be developed w/bike
path adj to storm water basin.
O
P&R
Packet Pg. 568
Item 15
MID-HIGUERA AREA ENHANCEMENT PLAN
- 38 -
17 2.3.3e 4 acres of park to be provided by a joint use
facility when elementary school is developed.
O
P&R
18 2.3.4a Subdivisions may provide parkland in lieu of
fee payment if findings can be made.
O
CD
19 2.4.1a 20 ft landscaped setback from Orcutt and Tank
Farm Roads.
O PW
20 2.4.1b Parcels adjacent to Tank Farm & Orcutt are
sensitive sites & require ARC review.
O CD
21 2.4.1c ARC shall review landscape plans - cluster
trees and screen views of new structures.
O
CD
22 2.4.1d Buildings on sensitive parcels shall not include
2nd story unless 2nd floor is set back by 50 ft.
O CD
23 2.4.1e PC shall review design of sensitive lots during
subdivision review to ensure views are maintained
O CD
24 2.4.1f ARC design review of units along Tank Farm &
Orcutt for compatibility & views of hill
O
CD
25 2.4.1g E street residences shall not be visible from
Orcutt/Tank Farm intersection
O
CD
26 2.4.1h R-1 subdivision at west base of Righetti Hill -
preserve views from D street to hill
O
CD
27 2.5.1a Implement environmental mitigation measures
with entitlements as appropriate.
O CD
28 3.2.19a Provide public plaza/seating areas adjacent
to A/B streets intersection.
O
PW
29 3.2.19 b Commercial use to occupy ground floor of
primary commercial area.
O
CD
30 3.2.19c Provide commercial development incentives:
additional story, parking reduction, exemption from
OASP add-on fees.
O
CD
31 3.2.24a Right-to-farm ordinance notification for real
property transfers.
O
CD
32 3.2.24b Ag activities to be phased out by project
build-out. Existing uses legally-established subject to
Non-conforming uses under Zoning Code.
O CD
33 3.3.4a City will support affordable housing in area
through state and local density bonus incentives.
O
CD
34 3.4.1a Geotech study required for each project site
prior to development.
O
CD
35 3.4.1b All structures & development shall meet
appropriate codes (Building & Transportation).
O
CD
36 3.4.2a Sites not previously surveyed shall conduct a
Phase I site assessment.
O
CD
Packet Pg. 569
Item 15
MID-HIGUERA AREA ENHANCEMENT PLAN
- 39 -
37 3.4.2b Environmental assessment reqd prior to public
access or development for buildings associated with
ag uses and 55 gallon drums in plan area.
O
CD
38 3.5.2a-h Performance standards for airport
compatibility.
O
CD
39 4.1.1a Encourage architectural styles: Craftsman, CA
Bungalow, CA Mission themes
O
CD
40 4.1.1b Design Standards for R-1 and R-2 districts. O
CD
41 4.1.1c Design Guidelines for R-1 and R-2 districts. O CD
42 4.1.1d Design Standards for R-3 and R-4
development
O
CD
43 4.1.1e Design Guidelines for R-3 and R-4
development
O CD
44 4.1.2a Residential design - use local streets to
enhance neighborhood atmosphere
O
CD
45 4.1.2b Design features (porches, entryways, yards) to
strengthen connections.
O
CD
46 4.1.2c Encourage universally accessible entries to
residences.
O CD
47 4.2.3a Traffic calming design for intersection of A and
B streets
O PW
48 4.2.3b Mixed use commercial area near intersection
of A&B streets to have 2 public plazas. Adjacent
buildings to be 2 stories tall.
O
CD
49 4.2.3c Southern part of intersection of A&B streets to
be landscaped.
O PW
50 4.2.4a Building setbacks from A Street defined O
CD
51 4.2.4b Trees in tree wells for whole mixed use area O
PW
52 4.2.4c Mixed-use building facades, materials, entries,
windows to be consistent with one another.
O
CD
53 4.2.1a Use figures 3.1 and 3.2 when reviewing
intersection plans for A and B streets
O
PW
54 4.2.1b Height ordinance allowed to be relaxed to
enable architectural features.
O
CD
55 4.3.4a Final landscape plan to include details & not
use invasive non-native plant species.
O
CD
56 4.3.4b List of plants not be planted in OASP. O
CD
57 4.4.3a OASP lighting standards - style, height,
efficiency, shielding, type, etc.
O CD
58 4.5.1a 160 ft wide distance buffer from train tracks to
residential areas.
O CD
Packet Pg. 570
Item 15
MID-HIGUERA AREA ENHANCEMENT PLAN
- 40 -
59 4.5.1b Add landscaped berm or sound wall where
buffer is not adequate for noise.
O
CD
60 4.5.1c Orient residential uses and outdoor areas away
from railroad tracks.
O
CD
61 4.5.1d Put parking lots between residence and
railroad tracks.
O
CD
62 4.5.1e Locate sensitive uses within residences away
from tracks.
O
CD
63 4.5.1f Use insulating construction to reduce noise. O
CD
64 4.5.2a Set outdoor activity areas 80' back from Orcutt
and Tank Farm Rd to reduce noise.
O CD
65 4.5.2b Locate sensitive uses within residences away
from roads.
O
CD
66 4.5.2c 60 ft wide distance buffer from Orcutt and Tank
Farm Rd to residences.
O
CD
67 4.5.2d Use insulating construction to reduce noise. O
CD
68 4.7.2 Building placement & construction to maximize
passive systems for heating, cooling & lighting.
O CD
69 4.7.2b Use shade, skylights, daylight controls, &
glazing to maximize energy savings.
O
CD
70 4.7.2c Residential developments of >5 units/non-
residential uses >5,000 sq ft shall comply with green
building criteria
O
CD
71 4.7.2d 5% of all single family units shall use
photovoltaics. Increase this percentage by 4% each
year.
O CD
72 4.7.3a Energy star compliant appliances required for
dwellings.
O CD
73 4.7.3b Use CFLs where possible. O CD
74 5.1.1 Orcutt Rd to have a continuous 2-way left-turn
lane, Class II bike lane, & curb/gutter between
Johnson and Tank Farm.
O
PW
75 5.1.2 Tank Farm to be widened at D St, Brookpine &
Wavertree w/left turn lanes.
O
PW
76 5.1.3 Tank Farm/Orcutt intersection realignment to be
completed in Phase I.
O
PW
77 5.2.1 Collector streets will be single lane of travel in
each direction.
O
PW
78 5.2.2 A St. shall have Class II bike lanes & separated
sidewalks & no parking (except adjacent to
neighborhood commercial area) on both sides.
O
PW
Packet Pg. 571
Item 15
MID-HIGUERA AREA ENHANCEMENT PLAN
- 41 -
79 5.2.3 B St. development standards. O
PW
80 5.2.4 C St. development standards. O PW
81 5.2.5 D St. development standards. O
PW
82 5.2.6 Bullock Ln to be extended to connect with traffic
circle at B & C streets.
O PW
83 5.2.7 Traffic circle to be built at B and C street
intersections.
O
PW
84 5.2.8 Shared driveway access for A, B, C, & D streets
ok. Limited private drives ok.
O PW
85 5.3.1 E St development standards O
PW
86 5.3.2 Allow alley area to count towards net site area
for density determination.
O
CD
87 5.4.1 Bus routes, stops & pullout areas to be
determined by City transit.
O PW
88 5.5.1 Bike trail connections descriptions O PW
89 5.5.2 Neighborhood park bike trail path description O PW
90 5.5.3 Tank Farm & Orcutt Road bike paths and bike
bridge over Industrial Way
O
PW
91 7.2.2a Circulation & road widths shall accommodate
Fire Dept. emergency access.
O
PW
92 7.2.2b Public fire hydrants reqd. Adequate water
volumes to support fire hydrants for fire protection
needs.
O
PW
93 7.2.2c Buildings shall have fire sprinkler systems per
SLOFD requirements.
O
FD
Packet Pg. 572
Item 15
MID-HIGUERA AREA ENHANCEMENT PLAN
- 42 -
STATUS OF MID-HIGUERA AREA ENHANCEMENT PLAN
Status as of October 2018
Complete
Difficulty to Complete
Lead
Dept.
No. Program Summary or
Ongoing Low Medium High
1 Plant native veg along creek. Acquire land on
fwy side of creek & property on east side of
creek between City prop & Marsh Street
bridge for open space (Crk-a) O H
ADM
2 Improve open space at south end of Brook
St. (PPO-d) O M
ADM
3 Acquire CalTrans property & develop park
(PPO-a) H
P&R
4 Modify or replace Marsh St bridge if desirable
to align w/Higuera- Marsh (Flood-a) H
PW
5 Install bypass overflow channel parallel to
creek on City-owned OS (Flood-b) H
PW
6 Coordinate other flood-planning
improvements (Flood-c.) O H
PW
7 Widen Higuera to four lanes w/bike lanes &
median & mid-block turns (Circ-a) H
PW
8 Realign Bianchi Ln w/ High St. (Circ-b)
H PW
9 Realign Pacific St. Close Walker St.
Landscape Walker closed area (Circ-c) H
PW
10 Parker St- CGS, trees, benches, lighting.
Higuera - trees, lighting & benches. Madonna-
landscaped median. Underground utilities &
remove billboards (Circ-d) H
PW
11 Extend Brook St. w/Caltrans site (Circ-e) H PW
12 Install bikeway along creek with bridge (Crk-
b) H
PW
13 Construct ped path on east side of creek. Add
benches, public art & interpretive displays &
bridges (Crk-c) H
PW
14 Establish a Mid-Higuera Area parking
committee & consider parking assessment
dist (Pkg-a) H
PW
15 Restripe street spaces & reduce driveway
ramps (Pkg-b) O M
PW
16 Review shared use parking & expand to
distribute parking (Pkg-c) H
PW
17 Lease or purchase 2 public parking lots (Pkg-
d) H
PW
Packet Pg. 573
Item 15
MID-HIGUERA AREA ENHANCEMENT PLAN
- 43 -
18 Acquire & improve public parking near
Archer/Walker/Higuera & Parker/High (Pkg-e) H
PW
19 Complete street improvements including ped
amenities (Pkg-f) H
PW
20 Establish in-lieu parking fee for the Mid-
Higuera Area (Pkg-g) H
PW
21 Add transit stops w/shelter, benches &
signage for the Mid-Higuera area. (Pub-a &
Pub-b) H
PW
22 Develop mini-plaza at Walker (PPO-b)
H
PW
23 Provide info kiosks at strategic places for
peds as part of the Mid-Higuera Enhancement
Plan. (PPO-c) H
PW
24 Acquire & maintain OS along creek & install
bridges & imps (PPO-e) H
PW
Packet Pg. 574
Item 15
RAILROAD DISTRICT PLAN IMPLEMENTATION PROGRAMS
- 44 -
STATUS OF RAILROAD DISTRICT PLAN IMPLEMENTATION
PROGRAMS
Status as of October 2016
Complete
Difficulty to Complete
Lead
No. Program Summary or
Ongoing Low Med High Dept.
1 Install traffic signals at Upham (4.1B)
C
PW
2 Use CIPs & economic revitalization tools to
promote area (2.9C) O H
ADM
3 Limit noise & emissions from engine idling
between 10pm and 6am (3.1M) O M
CD
4 Ped Circulation Plan, Bike Transp. Plan,
Circulation Element, and RR District Plan to
be consistent (2.7B) O
CD
5 Identify code violations & work with owners
to correct (2.8C) O
CD
6 Rehabilitate historic SP Freight warehouse
(1.11)
- 4 construct phases & roof repair
completed C
PW
7 Install Curb, gutter, boardwalk & trees
along Santa Barbara, High, Roundhouse,
Emily & South Street (4.1D) O
H
PW
8 Clearly communicate with property
owners, railroad & ops staff (3.1I) O L
CD
9 Encourage added public telephones or
emergency call boxes (2.7E) M
CD
10 Install pedestrian crosswalks at Leff &
Upham streets (4.1A)
M
PW
- Upham Crosswalk complete, Leff still
needed
11 Widen Santa Barbara Street from Broad to
Upham - including left turn pocket (4.1C) C
PW
12 Install standard gauge railroad track to
display of historic railroad cars (1.12)
H PW
13 Install historic markers & improved walk of
history describing RR features (1.14)
H CD
14 Public access to RR bikeway provided with
Villa Rosa development (1.17)
H PW
15 Consider MU zone to allow broader range
of uses (2.9D) C
CD
16 Consider CDBG funds for business loans
and rehabilitation grants (3.1K) H CD
Packet Pg. 575
Item 15
RAILROAD DISTRICT PLAN IMPLEMENTATION PROGRAMS
- 45 -
17 Enforce property screening & maintenance
along ROW (3.1N)
H CD
18 Rehabilitate historic water tower to 1940s
condition & update historic marker (1.6) H ADM
19 Evaluate assessment district to pay for
undergrounding utilities (3.1O) H PW
20 Construct bikeway on land adjacent to
Johnson Ave for Southbound bicyclists
(1.1)
H
PW
21 Install bridge off Johnson Ave for bikeway
north to Cal Poly (1.2) H PW
22 Install pedestrian bridge over RR linking
Fairview with Penny Lane (1.3) H PW
23 Install bikeway & trail linking east side of
RR tracks to signal on Johnson @Lizzie St
(1.4)
H
PW
24 Install new bikeway along both sides of RR
ROW (1.5) O H PW
- Partial improvements completed,
significant improvements still remain
25 Expand passenger loading zone in parking
lot north of depot (1.7) H PW
26 Install textured concrete paving &
crosswalks, ped lighting, trees & signage @
Leff and Osos (1.8)
H
PW
27 Plant palm trees on 50-100 ft centers (1.9)
H PW
28 Acquire land & construct a multi-modal
transit center with parking, shelter,
restrooms, info, bike storage, lockers etc
(1.10)
H
PW
29 Install street paving, curb, gutter, wood
sidewalks, street trees, lighting, & signage
on Railroad Ave, Osos, Santa Barbara,
High, Emily and Roundhouse Streets (1.13) O
H
PW
- Santa Barbara Street improvements
complete; other improvements remain
30 Install bikeway between Alphonso and
Emily streets (1.15) H PW
31 Install ped/bike crossing for access from
Stoneridge/Lawrence Dr./Villa Rosa
neighborhoods to Sinsheimer Park (1.16)
H
PW
32 Improve bike/ped undercrossing to
Sinsheimer Park (1.18) H PW
33 Install bikeway linking RR bikeway with
Augusta /Southwood Drive neighborhood
through creek & park areas (1.19)
H
PW
Packet Pg. 576
Item 15
RAILROAD DISTRICT PLAN IMPLEMENTATION PROGRAMS
- 46 -
34 Replace/repair fencing, remove trash &
install landscaping along fence line (1.20) H PW
35 Encourage expanded parking & staging
area for bikes (1.21) H PW
36 CIPs to install improvements at Emily,
Roundhouse, High, Church, Santa Barbara
& Osos for paving, curbs, lighting,
boardwalks, signage & trees (2.7C)
H
PW
37 Consider special engineering standards for
district public improvements (2.7D) H PW
38 Improve traffic circ-expand public transit,
bikeways, & widen Santa Barbara (3.1H) O PW
- Santa Barbara Street improvements 90%
complete; other improvements remain
39 Improve passenger loading facilities at
depot parking area (3.1J) H PW
40 Use RR parking lease funds to improve
parking enforcement, & lot appearance
(3.1L)
H
PW
41 Install additional traffic signage and street
lighting, where considered necessary at
pedestrian crossings to improve sight
distance (4.1E)
H
PW
Packet Pg. 577
Item 15
AIRPORT AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
- 47 -
STATUS OF AIRPORT AREA SPECIFIC PLAN
Status as of October 2018
Complete
Difficulty to Complete
Lead
No. Program Summary or Ongoing Low Med High Dept.
1 Establish joint RTA bus stop on S.
Higuera & Tank Farm Rd (AASP 6.3E) C
PW
2 Management program for area creeks
required with minimum setbacks of 35
ft. (AASP 3.3.1)
O
ADM
3 Develop remediation actions for
Chevron site to preserve natural
resources (AASP 3.3.4)
C
ADM
4 Establish mitigation bank within
Chevron property to serve AASP &
MASP areas (AASP 3.3.5)
C
ADM
5 Develop public access levels
compatible with maintaining habitat for
Chevron property (AASP 3.3.6)
C
ADM
6 Restore creek areas (AASP 3.3.7) O
ADM
7 Retain open space corridor to allow
movement of wildlife on Chevron
property (AASP 3.3.8)
O
ADM
8 Maintain wildlife corridors south from
AASP toward Indian Knob & Davenport
Hills by obtaining greenbelts and
working with County (AASP 3.3.9P)
O
ADM
9 Enlarge wetland connection between
areas north and south of Tank Farm Rd
(AASP 3.3.10)
O
ADM
10 City will manage acquired open space
land to preserve habitat (AASP 3.3.11) O
ADM
11 City will pursue MOU for privately
owned open space lands to preserve
habitat (AASP 3.3.12)
O
ADM
12 In lieu fee for development not able to
dedicate land for open space (AASP
3.3.14)
O
ADM
13 Expansions of URL will secure open
space (AASP 3.3.15) O
ADM
14 Resource management activities
compatible with airport operations
(AASP 3.3.17)
O
ADM
Packet Pg. 578
Item 15
AIRPORT AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
- 48 -
15 Expand wetland north of Tank Farm
w/Chevron project (AASP 3.3.18) O
ADM
16 50 ft wetland setback required through
subdivision, development, & public
facilities (AASP 3.3.3)
O
CD
17 Require development to dedicate land
or easements for greenbelt (AASP
3.3.13)
O
CD
18 Locate bike paths outside creek
setback area (AASP 6.3H) O
PW
19 Bike lanes shall meet or exceed CA
DOT & City design standards (AASP
6.3I)
O
PW
20 Require bike lanes as part of frontage
improvements for development.
Require bus stops as part of
development improvements where
appropriate (AASP 6.3G)
O
PW
21 Establish timed transfer point on
Margarita Rd (AASP 6.3D) L
PW
22 Development to provide street furniture
or passenger amenities such as transit
stops, shelters, pads, trash receptacles,
etc. (AASP 6.3L)
M
PW
23 Amend Bicycle Transportation Plan to
include Airport area facilities (6.3F)
M
PW
24 Limit access to creek side environment
between Broad St. and Santa Fe Rd
(AASP 3.3.2)
H
ADM
25 Access & interpretive info for historical
resources (AASP 3.3.16)
H CD
26 TIF funds used for new buses to serve
AASP. Bus stops provided by adjacent
development (AASP 6.3C)
H
PW
27 Amend Circulation Element to expand
truck route network (AASP 6.3A)
H PW
28 Connect bike lanes at intersections in
the Airport Area (AASP 6.3J)
H PW
29 Establish a CIP program to include
bikeways not part of Airport
development (AASP 6.3K)
H
PW
Packet Pg. 579
Item 15
MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
- 49 -
STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION
PROGRAMS
Status as of October 2016
Complete
Difficulty to Complete Lead
No. Program Summary or
Ongoing Low Med High Dept.
1 1.1a Hills to be dedicated to City &
protected. C
ADM
2 1.1b Livestock grazing may be limited &
City will manage hillside vegetation. O
CD
3 1.1c Previously graded road to Telecom
facilities will be relocated. O
CD
4 1.2.a Acacia Creek corridor shall be 100
ft wide exclusive of sports fields & will be
replanted with riparian plants. O
CD
5 1.2.b Swales emerging from hills will have
open space corridors 50 ft wide & fenced
near developed areas. O
CD
6 1.2c Lower swales thru neighborhood
park will be accessible for play O
P&R
7 1.3 Riparian and seasonal wetlands
which are shown as development areas
will be replaced in kind within MASP. O
ADM/P
W
8 1.4a MASP development to detain peak
storm water flows on-site. Shallow basins
are preferable to deeper ones. O
CD
9 1.5a Protect ag land elsewhere in URL or
greenbelt. O
CD
10 1.6a Provide 10-acre neighborhood park,
and 16 acre improved sports field. O
P&R
11 1.6.1a Neighborhood Park req's including
equipment and landmark feature.
P&R
12 1.6.1b Some seating, cooking & small
child play space to be partly enclosed. O
P&R
13 1.6.2 Greenspace and play fields mainly
semi-natural vegetation, with large trees
only at edges & possibility of community
gardens. O
ADM
14 1.6.3 Greenways for cycling & walking
paths. O
PW
15 1.6.4 Sports fields to accommodate active
recreational uses & include on-site
parking. Shielded night lighting. C
P&R
16 2.1.1 Low Density Residential areas for
SFRs only. No churches, schools or
secondary dwellings. O
CD
Packet Pg. 580
Item 15
MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
- 50 -
17 2.1.2 Density will be 7-9 dwellings/acre O CD
18 2.1.3 Lot dimensions are regulated by
Table 2 O
CD
19 2.1.4 A-C - setbacks and building/parking
orientation O
CD
20 2.1.5 Each dwelling shall have 2 off-street
parking spaces - one covered. & alley
access standards O
CD
21 2.2.1 Medium density residential areas -
detached houses on small lots or groups
of detached dwellings on larger lots O
CD
22 2.2.2 Medium Density shall be 8-16
dwellings/acre. O
CD
23 2.2.2 a-e Lot dimension table & standards
for Med Density O
CD
24 2.2.4 Med Density Building form -
setbacks and architecture O
CD
25 2.2.5 Parking to be located at rear. Alley
access standards and special setbacks if
located in front. O
CD
26 2.3.1 Med-High Density Res for attached
dwellings or PUDs. No churches or
schools allowed. O
CD
27 2.3.2 Med-High Density will be 13-18
units/acre. O
CD
28 2.3.3 Lot dimensions per Table 4 O CD
29 2.3.4 a&b Setbacks and architectural
criteria O
CD
30 2.3.5 Parking to be located at rear. Alley
access standards and special setbacks if
located in front O
CD
31 2.4.1 High-Density Residential - allow a
mix of densities and ownership. Churches
and Schools not allowed O
CD
32 2.4.2 High-Density Residential density will
be 19-24 units/acre O
CD
33 2.4.3 Lots to be developed as a single
parcel or condo however it may be divided
into two land parcels to allow for
affordable housing. O
CD
34 2.4.4 a-c High Density building form -
setbacks, arch character and porches or
other outdoor space. O
CD
35 2.4.5 Parking requirements and location O CD
36 2.5.1 Neighborhood commercial uses =
CN zone except no uses larger than 5,000
sq ft, schools, services stations O
CD
37 2.5.2 CN Density shown in Figure 5 O
CD
Packet Pg. 581
Item 15
MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
- 51 -
38 2.5.3 CN lot dimensions & size minimums
O
CD
39 2.5.4 a-f CN Building Form (coverage,
height, setbacks, FAR, size, architectural
character O
CD
40 2.5.5 CN parking required 1/500 sq ft. &
1/300 sq ft for bikes O
CD
41 2.6.1 Business Park uses - master-
planned campus-type development. O
CD
42 2.6.1a BP Office - small offices and mixed
use. O
CD
43 2.6.1b BP General - R&D, Light
manufacturing, business services.
Allowed uses listed by approval level. O
CD
44 2.6.1c BP- Outdoor - landscaped parking,
storage, employee recreation areas O
CD
45 2.6.1d BP- prohibited uses = carnivals,
convalescent hospitals, dwellings,
homeless shelters, schools or public
assembly uses O
CD
46 2.6.2 BP employee density not to exceed
40 persons/acre O
CD
47 2.6.3 BP parcel sizes & dimensions O CD
48 2.6.4 BP vehicle access will be loops or
grid extensions. NO driveways on Prado
Rd. O
PW
49 2.6.5a-i BP site and building design (FAR,
Orientation, outdoor space, setbacks,
parking lots, heights, massing, entries, &
materials) O
CD
50 2.6.6a-d BP Continuity of landscape
space O
CD
51 2.6.7a-d BP parking requirements &
design O
CD
52 2.6.8a-b BP Landscape screening
required for loading, waste collection,
utilities & mechanical equipment O
CD
53 2.6.10 BP Outdoor employee amenity
areas are required O
CD
54 2.7.1 Special use area between hills and
Broad street (1.2 acres). House and
grounds should be preserved and uses
may include residence; B7B, hostel,
museum, art or craft gallery with retail
sales, restaurant, retail sales of food,
office for sales of MASP properties or
visitor info center. O
CD
55 3.1a Buildings to express human scale by
articulating mass O
CD
Packet Pg. 582
Item 15
MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
- 52 -
56 3.1b Architectural styles in plan are
encouraged O
CD
57 3.1c Residential entries should be
identifiable from streets or ped walkways O
CD
58 3.1d Universally accessible entries are
encouraged for all buildings O
CD
59 3.1e All development is encouraged to
have outdoor space shielded from aircraft
noise. O
CD
60 3.2 Street trees to create sense of identity;
focal areas should be highlighted through
trees and planting; riparian corridors
should have native landscaping; and all
landscaping should be water efficient. O
CD
61 3.3 Lighting shall be energy efficient,
avoid glare and minimize illumination
toward sky. O
CD
62 3.4 Building form & placement to meet
solar exposure objectives. O
CD
63 3.5 Public art to be encouraged at
neighborhood park & principal collector
street entries. O
P&R
64 3.6 Dwellings & outdoor spaces to be
separated from Prado Rd by greenways,
green space & BP uses. Landscaped
berm to be installed where appropriate. O
CD
65 3.7 Fence and wall designs to comply with
community design guidelines O
CD
66 4.2 a-g performance standards to ensure
airport compatibility including limitation on
uses and operations that might be
dangerous; indoor noise level
requirements, avigation easement and
disclosure requirements O
CD
67 5.0 Traffic calming features to be
developed. Streets & drives to provide
access without unnecessary paving O
PW
68 5.1 City will extend transit service into
area as roads are developed. Transit
stops to include turnouts, shelters,
benches, trash receptacles & real time
arrival status displays. O
PW
69 5.2a New development shall include
sidewalks, ped paths, bike lanes and bike
paths. Precise alignments will be
determined with subdivisions. O
PW
Packet Pg. 583
Item 15
MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
- 53 -
70 5.2b Bike path width, paving, signs and
features to comply with Bicycle
Transportation Plan. Proposed crossings
may include features such as pavement
changes, signs or bulb-outs. O
PW
71 5.2c. Pedestrian and bike access to
sports fields will be by enhanced under or
over crossing with visibility for safety and
sense of place O
PW
72 5.3a-I Streets to foster traffic volumes
appropriate for land uses and
neighborhoods O
PW
73 5.4 Alleys should be used where feasible O PW
74 5.5 Local streets will have bulb-outs at
the end of blocks and at mid-block for
blocks longer than 500'. O
PW
75 5.7.1 Additional right-of-way for Broad
Street to accommodate bike lane, vertical
curbs, landscaped parkway, and center
median. O
PW
76 5.7.2 Prado Road facilities, phasing and
construction requirements O
PW
77 5.8 Traffic calming required -
roundabouts, traffic circles, intersection
treatments, and bulb-outs. O
PW
78 5.9 Street names to follow City
requirements. O
CD
79 6.3 Fire Dept. activated signal control
devices required for all intersections with
traffic signals O
PW
80 7.3.1 Subdivision plans must show
detailed solutions to storm water issues.
Developers are responsible for drainage
facilities serving their parcels. O
PW
81 7.3.2 All drainage facilities must comply
with NPDES & post construction runoff
controls O
CD
82 7.5 Each residence shall have one 2"
conduit connected with underground
system to facilitate future installation of
high-speed data system. O
PW
83 7.7 All new power, telephone & cable
lines to be installed underground. All
existing line facilities to be underground at
time of frontage construction. O
PW
84 7.8 Streets & utilities installations must be
built to ensure that later projects can build
upon systems that are appropriately sized
and located. O
PW
Packet Pg. 584
Item 15
MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
- 54 -
85 8.1a The area shall accommodate at
least 2 sites with a total capacity of 40
dwellings for HASLO to provide affordable
housing. C
CD
86 8.1b Residential area may be developed
with modular or manufactured dwellings
that comply with specific plan. O
CD
87 8.1c Affordable housing density bonuses
available in area designated in Fig 5 only
due to airport land use plan. O
CD
Packet Pg. 585
Item 15
CLIMATE ACTION PLAN
- 55 -
STATUS OF CLIMATE ACTION PLAN IMPLEMENTATION
Status as of October 2018
Complete
Difficulty to Complete
Lead
No. Program Summary or Ongoing Low Med High Dept.
BLD
1.1
Accomplish 425 residential
and 10,000 sq ft of
commercial energy retrofits
annually
O CD
BLD
1.2
Encourage monitoring of
energy use via energy
monitors, web apps, and
State-required energy
disclosures
O CD
BLD
1.3
Evaluate options for local
energy conservation
ordinance
C ADM
BLD
1.4
Identify energy efficient
upgrades for historic
buildings that preserve
integrity
M CD/ADM
BLD
2.1
Expand incentive program
for projects that exceed Title
24
C CD
BLD
2.2
Require new development
to install energy efficient
appliances
C CD
BLD
2.3
Amend design guidelines to
promote low impact
development strategies
O L CD
BLD
3.1
Promote energy efficiency
programs and financing O CD/UT
BLD
3.2
Collaborate with County,
state, & energy providers for
single portal to database
O ADM
BLD
3.3
Work with local green build
organizations for outreach
and education
O CD/ADM
BLD
3.4
Work with business
community for a green
business certification
program
M CD/ADM
RE 1.1
Work with County to
promote renewable funding
and financing
O ADM
Packet Pg. 586
Item 15
CLIMATE ACTION PLAN
- 56 -
RE 1.2
Work w/county & regional
energy providers to evaluate
a "feed-in tariff" program to
pay for renewable energy
provided
M ADM
RE 2.1
Incentivize renewable
energy generation by
reducing permit costs &
streamlining review
C CD
RE 2.2
Revise City policies to
remove barriers to
renewable energy use &
implement COSE 4.6.17
L CD/ADM
RE 2.3 Evaluate feasibility of
regional CCA C ADM
RE 3.1 Educate community re:
renewable energy programs O ADM
RE 3.2 Consider results of SLO-
RESCO project L ADM
RE 3.3 Encourage use of
photovoltaics O CD/UT
TLU
1.1
Implement the short range
transit plan O H PW
TLU
1.2
Continue to research
funding sources for transit
service upgrade projects
O PW
TLU
1.3
Support the County's
Energy Wise Plan strategy
to add transit routes
O /PW/ADM
TLU
1.4
Continue to offer free or
discounted bus passes O PW
TLU
2.1
Require 8% spaces
designated for CAVs in
parking lots > 50 spaces
C M CD
TLU
2.2
Pre-wire electric vehicle
charging stations (2% of
spaces) for parking lots >50
spaces
C M CD
TLU
2.3
Work with APCD on EV
Readiness O CD
TLU
2.4
Identify street networks
appropriate for NEV use M PW
TLU
2.5
Designate spaces in public
parking lots and MF housing
projects for car-shares
M CD/PW
TLU
3.1
Modify BTP to achieve 20%
bike mode share H PW
TLU
3.2
Develop funding & staff
resources to implement BTP H PW
Packet Pg. 587
Item 15
CLIMATE ACTION PLAN
- 57 -
TLU
3.3
Research bike-share
program near parking
facilities
O L PW
TLU
4.1
Require new & redeveloped
streets to address all travel
modes
O M CD/PW
TLU
4.2
Develop a Downtown
Pedestrian Plan
M PW
TLU
4.3
Collaborate to expand Safe
Routes to School programs,
events & projects
O M PW
TLU
4.4
Identify traffic congestion
management techniques M PW
TLU
5.1
Improve connectivity
between neighborhoods M PW
TLU
5.2
Promote infill (increase
density in suitable zones) O L CD
TLU
5.3
Incentivize mix-use by
addressing parking and
streamlining permit review
C M CD
TLU
5.4
Evaluate mixed-use projects
in high density residential
zones
L CD
TLU
5.5
Apply MU overlay zone to
areas suitable for TOD M CD
TLU
6.1
Make cost of using DT
parking structures less
expensive than parking
meters
O PW/ADM
TLU
6.2
Locate transit stops & bike
racks near parking
structures
O PW
TLU
7.1
Amend zoning regulations to
increase potential parking
reductions from 10-30% for
shared parking
C M CD
TLU
8.1
Improve City's jobs-housing
balance O CD/ADM
TLU
8.2
Support infill housing -
especially below market rate
housing
O CD
TLU
8.3
Continue to reduce barriers
to production of SDUs C CD
TLU
9.1
Distribute transportation
welcome packets O PW
TLU
9.2
Install informational bike
signage O PW
Packet Pg. 588
Item 15
CLIMATE ACTION PLAN
- 58 -
TLU
9.3
Continue partnerships with
regional organizations on
outreach and education
O CD
TLU
9.4
Market incentive programs
to employers and workers L ADM
WTR
1.1
Require landscape projects
to minimize turf and use
native & drought-tolerant
plants
C CD/UT
WTR
1.2
Require landscape projects
to use low-water using &
efficient irrigation systems
C CD/UT
WTR
1.3
Encourage use of recycled,
grey, or rainwater harvesting
systems
O CD/UT
WTR
2.1
Review development for
consistency with CALGreen
water standards
O CD/UT
WTR
2.2
Expand recycled water
infrastructure to encourage
use by new projects
O CD/UT
WTR
2.3
Require use of native &
drought-tolerant plants O CD/UT
WTR
3.1
Provide graphic history &
comparison of water usage
on utility bills
O UT
WTR
3.2
Maintain on-line resources &
outreach materials for water
saving tips, planting guides,
& rebates
O UT
WST
1.1
Continue to provide
recycling & green waste
services
O UT
WST
1.2
Evaluate effectiveness of
more aggressive volume-
based rates
M UT
WST
1.3
Enforce IWMA standards re:
recycling services provided
by landlords
M UT
WST
1.4
Re-establish financial
support for home
composting
M UT
WST
1.5
Explore feasibility of waste
audit program
M UT
WST
1.6
Consider curbside food
waste pickup O M UT
WST
1.7
Evaluate effectiveness of
food packaging ordinance
M ADM
Packet Pg. 589
Item 15
CLIMATE ACTION PLAN
- 59 -
WST
1.8
Evaluate collection of waste
cooking oil and city-run
biodiesel distribution
M ADM/UT
WST
1.9
Evaluate relocating bio-solid
composting closer to City M ADM/UT
WST
2.1
Provide option for waste
audits to educate
consumers where waste can
be reduced
C UT
WST
2.2
Maintain on-line resources &
outreach for recycling C UT
WST
2.3
Host interactive workshops
on home composting O UT
WST
2.4
Explore options for landfill &
Water reclamation site visits
to public & school groups
O UT
PKS
1.1
Conduct audit of parks &
open space to identify tree
planting locations
H P&R
PKS
1.2
Expand tree planting
programs H P&R/ADM
PKS
1.3
Establish Urban Forester
intern program
H ADM
PKS
2.1
Negotiate easements & land
donations for conservation H ADM
PKS
2.2
Implement conservation
plans for open space areas O H ADM
PKS
2.3
Use conservation
easements to create
connected trails
O ADM
PKS
2.4
Expand donation programs
for open space preservation
& maintenance
H ADM
PKS
2.5
Partner w/other
organizations to preserve
open space & develop
parkland
O H ADM
PKS
3.1
Store City green waste at
composting facilities O ADM
PKS
3.2
Continue to chip larger
green waste & make
available for public use
O ADM
PKS
4.1
Identify suitable locations for
community gardens O L P&R
PKS
4.2
Implement Calle Joaquin
AG Reserve Master Plan
L ADM
Packet Pg. 590
Item 15
CLIMATE ACTION PLAN
- 60 -
PKS
5.1
Continue tree planting &
maintenance education
programs
O P&R
PKS
5.2
Partner w/regional
organizations to create
volunteer opportunities for
trail & open space
maintenance.
O ADM
PKS
5.3
Advertise availability of
green waste. O ADM
GO 1 Create & implement a City
building retrofit program C CD
GO 2 Generate renewable energy
at City-owned facilities H PW/UT
GO 3 Continue to upgrade to fuel-
efficient vehicles O PW
GO
4.1
Replace traffic signal
fixtures with LEDs O M PW
GO
4.2
Replace streetlights w/high
efficiency fixtures O PW
GO
4.3
Upgrade outdoor lighting
fixtures at City-owned
facilities
M PW
GO
5.1
Prioritize replacement of
water pumping & lift stations
H UT
GO
5.2
Implement the WRRF
energy conservation plan C H UT
GO
6.1
Ensure all City facilities
have recycling containers C PW/UT
BO 6.2
Assess feasibility of food
scrap collection & pickup in
public places
M UT
GO
7.1
Choose right plants for City
landscapes O L PW
GO
7.2
Prepare soils for water
penetration & retention
L PW
GO
7.3
Design & operate efficient
irrigation O M PW/UT
GO
7.4
Install water efficient fixtures
& maintain leak control at
City facilities
O PW/UT
GO 8 Use BAT for equipment &
vehicle fleet replacements O M PW
GO 9
Continue to reduce single
occupant employee
commuting
O HRPW
GO 10 Hire staff to implement CAP
& energy programs C ADM
Packet Pg. 591
Item 15
CLIMATE ACTION PLAN
- 61 -
GO
11.1
Publish CAP information on
web site O ADM
GO
11.2
Participate in regional
events to educate
community about climate
action planning
O ADM
Packet Pg. 592
Item 15
TITLE SLIDE
1
Packet Pg. 593
Item 15
Table of Contents
1.Title Slide
2.Table of Contents Social
3.Demographics of SLO
4.Police: Noise and
Calls for Service
5.Police: Property and
Violent
6.Homeless Population
7.Fire Department:
Calls for Service
8.Fire: Prominent
Populations
9.Future of Cal Poly
10.Millennial Trends
11.Citizen Satisfaction
Economic
12.Tourism
13.Housing in SLO
14.Jobs in SLO
15.City Finances
16.City Employees
17.City Employee Trends
Environmental
18.Public Transit
19.Active Transport
20.Collision Trends
21.Water
22.Climate Disasters
23.GHG Emissions
-------------------
23.Appendix &
References
24.Questions
2
Packet Pg. 594
Item 15
Packet Pg. 595
Item 15
Demographics of SLO
47,541
56,686
0
10,000
20,000
30,000
40,000
50,000
60,000
2010 2011 2012 2013 2014 2015 2016 2017 2020 2025 2030 2035
Figure 1: SLO Population Trend
General Plan Population Projection
American Community Survey Population Estimate
3
0
10
20
30
40
50
60
70
80
90
White%Hispanic%Black%Asian %
Figure 2: Demographic Changes Across the Nation
2000 San Luis Obispo City
2016 San Luis Obispo City
2000 California
2016 California
2000 United States
2016 United States
A challenge for all cities is preparing for future
growth and sustaining quality of life for residents.
Overall San Luis Obispo is increasing its diversity.
Packet Pg. 596
Item 15
Police: Noise and
Calls for Service
September/October Peaks –
Cal Poly back in session
0
50
100
150
200
250
300
JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunFigure 4: Noise Violations
2014 2015 2016 2017 2018
Monthly Average
for the year 153 148 131 125
4
Calls for service in the city have increased over
time while noise violations have decreased.
28,152 26,921 28,741
30,742 30,305 29,974 31,924 32,738 33,106
7,526 7,494 7,644 9,041 9,082 8,431 8,624 8,905 8,074
-4%7%7%-1%-1%7%3%1%
0%2%18%0%-7%2%3%-9%
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2009 2010 2011 2012 2013 2014 2015 2016 2017
Figure 3: Calls for Service and Reports Filed Over Time
CFS RF
Packet Pg. 597
Item 15
Police: Property and Violent Crime
0
500
1,000
1,500
2,000
2,500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Figure 6: SLO Crime in the Past Decade
Property Crime Violent Crime
SLO Property
Crime Rate
SLO Violent
Crime Rate
Comparing the crime rate in SLO to
benchmark cities (Davis, Monterey,
Napa, Paso Robles, Santa Barbara, &
Santa Cruz) we see improvement.
Figure 5:
Crime across
the region
5
Overall crime at the end of 2017 in San Luis
Obispo was trending down with SLOPD
adding a crime analyst and implementing
intelligence led policing philosophiesPacket Pg. 598
Item 15
Homeless
Population 483
274265
181
25
76
49
143
0
50
100
150
200
250
300
350
400
450
500
2014 2015 2016 2017
Figure 7: Reports Filed on Homeless Persons:
Changing Offenses
Trespass of Real
Property
Intoxicated Person
Controlled Substance
Under Influence
Controlled
Substance/Possession
The homeless population is decreasing while
homeless calls for service are increasing.
148 158 189
602
324 222
2013 2015 2017
Figure 9: Homeless Population Over Time
Sheltered Unsheltered
750
482 411
4,498
5,503
6,285
7,102
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2014 2015 2016 2017
Figure 8: Homeless Calls for Service
Percent Homeless CFS
has risen from 15% in 2014,
to 21% in 2017
6
Packet Pg. 599
Item 15
Fire: Prominent
Populations
The small homeless
population makes up
a substantial amount
of encounters.
Cal Poly
makes up
6.7% of
Total Call
Volume
8
Senior care and
Retirement communities
make up the top seven
call locations
On Campus Calls
4.8% of Total Calls
(320 Incidents)
Off Campus Calls
1.9% of Total Calls
(128 Incidents)
City of SLO residents
58%
Homeless
Population
11%
Non SLO
residents
10%
Care Facility
8%
Unable to
Determin
6%
Cal Poly Students
7%
Figure 11: Patient Encounters by
Living Situation -2017
Figure 12: Cal
Poly Call Volume
In 2017 the Fire Department responded
to 6,669 calls for service (CFS)
Packet Pg. 600
Item 15
Future of Cal Poly
Students
Living On-
campus
2017
35%
2035
65%
According to Cal Poly’s 2035 Master Plan:
the student population will increase and
students living on campus will increase.
A modal shift
away from
automobiles and
towards
bike/pedestrian
paths will have
major impacts on
emergency
vehicles and
public transit.
~6,200
Fewer
students
living off-
campus
Student
Population
2017
22,118
2035
25,000
The Purple line
represents the
future quickest
route across
campus on non-
restricted roads.
Figure 13:
Master Plan
Map
9
Packet Pg. 601
Item 15
10
National Millennial Trends
Millennials are slower than
earlier generations to get
married and are far less likely
than older generations to own
homes.
Within the generation
there are a wide
spectrum of education
levels.
Young people are
flocking to cities and
embracing denser
communities.
48% of “post-millennials”
(under 18) are non-white
compared to 32% of
Americans over the age
of 35.
0%5%10%15%20%25%30%35%40%
TV
Mobile Phone
Computer
Car
Figure 14: "In your daily routine, losing which
piece of technology would have the greatest
negative impact on you? (Answers among 18-
34 year olds)
Millennials: Age 22-37 (born 1981-1996)
Post-Millennials: Under 22 (born after 1996)
Millennials are the only generation to prefer an
internet accessing devices over the automobile
Packet Pg. 602
Item 15
Citizen Satisfaction
11
Major City Goals
and Objectives Housing Multi-Modal
Transportation Climate Action
Fiscal
Sustainability
and
Responsibility
Downtown
Vitality
Voters prefer projects that maintain current infrastructure and services
rather than improve them.
Infrastructure
Projects
Important to
Residents
Maintaining
Streets
72%
Preserving
Open Space
67%
City Services
Important to
Residents
Addressing
Homelessness
67%
Keeping Public
Areas Safe and
Clean
66%
Extremely
to Very
Important
69
74
71
46
28
23
24
45
0%20%40%60%80%100%
2010
2011
2013
2017
Generally speaking, how would you rate the
City of San Luis Obispo as a place to live?
Excellent Pretty Good Just Fair/Poor
91%
97%
97%
95%
San Luis Obispo is consistently ranked as an
excellent or pretty good place to live.
Packet Pg. 603
Item 15
Packet Pg. 604
Item 15
Tourism
2010 low of 42%
Tourism peaks in
Summer months
Winter months are
traditionally “off-season”
2017 low of 56%
30
40
50
60
70
80
90
100
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneFigure 16: Occupancy = Rooms Sold / Rooms Available
2010 2011 2012 2013 2014 2015 2016 2017 2018
Occupancy has increased over the past 8 years despite an
increase in total rooms.
The Tourism Business Improvement District Board has focused
its promotional coordination on off season months which has
seen the most growth.
With new hotel projects under construction tourism will play a
greater role in the local economy.
12
Packet Pg. 605
Item 15
Housing in SLO
San Luis Obispo is increasing the total number of housing units available, with a range of types and affordability.
57 58
89
67
34
92
114
73
189
131
0
20
40
60
80
100
120
140
160
180
200
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Figure 17: Residential Housing Units Added to the
City
Detached Single Family Affordable DSF Attached Single Family
Affordable ASF Multi-Family Residential Affordable MFR
57 58
89
67
34
92
114
73
189
131
0
20
40
60
80
100
120
140
160
180
200
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Figure 18: Residential Housing Units by City
Affordability
General Housing Affordable Housing
Packet Pg. 606
Item 15
Jobs in SLO
2.7%
4.1%
3.7%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
JanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepPercent %Figure 20: Unemployment Rate Unemployment Rate SLO City
Unemployment California
Unemployment US
San Luis Obispo’s Unemployment rate is
currently 2.7%, which is below both the
California and US average.
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2009 2010 2011 2012 2013 2014 2015 2016
Figure 19: San Luis Obispo Median Income
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
14
*Not adjusted to exclude age range 18-21
Packet Pg. 607
Item 15
City Finances
35%
10%17%
8%
14%
16%
Figure 21: General Fund Revenue
General Sales Tax
Transient Occupancy
Tax
Property Tax
Utility Users Tax
Other Tax & Franchise
Revenues
Non-Tax Revnues
$15,000
$25,000
$35,000
$45,000
$55,000
$65,000
$75,000
$85,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Figure 22: Revenue and Expenditure 5-Year Forecast
Revenues Expenditures
Projection($000s)
Total revenues are projected to increase at an
average rate of 2% annually.
Budget is balanced; aligns revenues and
expenditures to account for increased
payments to CalPERS.
15
Packet Pg. 608
Item 15
City Employees
Police and Public Works have the largest amount of regular employees working in their departments.
The Attorney’s office and HR have had the same number of regular employees since 1996.
16
26
3
32
57
12
5
18
85
84
69
0
10
20
30
40
50
60
70
80
90
100
Figure 23: Regular FTE by Department
Admin Admin & IT Attorney CDD Fire FIT
Finance HR Parks and Rec Police Public Works Utilities
*In 2016 Finance and IT split, with Admin
absorbing IT
328 391349
Packet Pg. 609
Item 15
City Employee Trends
11%
16%
17%
20%
22%
22%
23%
23%
45%
0%5%10%15%20%25%30%35%40%45%50%
CDD
Police
Fire
HR
Parks and Rec
Average
Public Works
FIT
Utilities
Figure 26: Percent Employees Eligible
for Retirement 2018-2021 By
Department
Citywide turnover runs about 8-10% each year, with some
notable exceptions in 2016 and 2018.
Most departments average 22% eligible for retirement, with
some exceptions in departments like Utilities.
17
45%
11%
20%
14%
10%In House
Local Private
Local Public
Out of Area Public
Out of Area
Private
Figure 25: 2017-18 New Employees Come From
310
320
330
340
350
360
370
380
390
400
410
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Figure 27: 2005-2018 Citywide Turnover
Summary
Termination
Retirement
Resignation
Head Count
Packet Pg. 610
Item 15
Packet Pg. 611
Item 15
Public Transit
1,078,523
1,209,708
1,131,879
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
Figure 29: Transit Ridership Over Time
117,955
114,145 115,483 115,021
101,330
90,000
95,000
100,000
105,000
110,000
115,000
120,000
125,000
2014 2015 2016 2017 2018Gallons
Fiscal Year
Figure 28: Diesel Fuel Usage
The city buses diesel consumption is
decreasing, while transit ridership is increasing.
18
Ridership has
been rising
despite
cyclical drops
Packet Pg. 612
Item 15
Active Transportation
Cyclist and Pedestrian
traffic often go hand and
hand -proximity to
destination and
convenience influences
their mode of transport
0 200 400 600 800 1000 1200 1400 1600
Bob Jones Path
Laguna Lake Park
Jennifer Street Bridge
Madonna Inn Bike Path
Meadow Park
(RST) Campus to Foothill
(RST) Foothill to Hathaway
(RST) Hathaway to Taft
(RST) Jennifer to San Carlos
(RST) San Carlos to Boulevard Del Campo
Railroad Saftey Trail (RST) Boulevard Del Campo to
Orcutt
Sinsheimer Park
Figure 30: 2016 Daily Volume along select paths
Pedestrians Bicyclists
Type of
Transportation
% of City Resident Trips
by 2035
Motor Vehicles 50%
Transit 12%
Bicycles 20%
Walking, Car Pools,
and other Forms
18%
Class I 7.7mi 33.3mi
Class II 30mi 47.6mi
Class III 28mi 32mi
Current Proposed
by 2035
Road
Type
19
Packet Pg. 613
Item 15
Collision
Trends
0
200
400
600
800
1,000
1,200
1,400
TOTAL COLLISIONSFigure 31: Overall Collisions
84%
11%
5%
Motor Vehicle
Bicycles
Pedestrians
Overall collisions
are trending
downwards and
with future
reductions in
automobile usage
this number should
continue to drop.
20
2016 Collision Statistics
Packet Pg. 614
Item 15
1986-91 Drought
& mandatory
conservation
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
PopulationAcre-Feet of WaterYear
Water Demand Population
Water
122 120
129 125
119
106 101
107
113
105
92 87
97
0
20
40
60
80
100
120
140
160
GPCDFigure 32: 2005-2017
Gallons Per Capita Daily
5 Year Timeframes Average GPCD
2011-2015 106
2006-2010 123
2005-2001 122
2000-1996 123
1995-1991 96
1990-1986 166
21
Figure 33: Water Demand and Population
0
50
100
150
200
250
300
200620072008200920102011201220132014201520162017Acre Feet of WateRecycled Water
Packet Pg. 615
Item 15
Climate Change:
Disasters
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Figure 34: Cost of Fire to Acres in SLO County
Acres Cost of Fire (in Dollars)
Forest and rangelands cover over 80% of California’s 100
million acres.
Today's fire season in the western United States starts
earlier, lasts longer, and is more intense than in the last
several decades.
California is seeing a trend of larger and more costly fires.
2010 2011 2012 2013 2014 2015
22
SLO County is seeing a trend of larger and
more costly fires.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
California
Figure 35: Fires in Acres
SLO County Packet Pg. 616
Item 15
Greenhouse Gas
Emissions -
Community Energy
Residential electricity emissions down ~30 percent from
baseline.
Overall energy emissions (electricity and natural gas,
residential and nonresidential) down 14 percent from
2005 baseline.
Overall inventory emissions down ~8 percent from 2005-
2016.
23
0
5,000
10,000
15,000
20,000
25,000
30,000
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
2005 2007 2009 2011 2013 2015
Figure 36: Residential Electricity, 2005-2016
kWh MTCO2e
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2005 2007 2009 2011 2013 2015
Figure 37: Community Energy Emissions, 2005-2016
MTCO2e
Gas Data Unavailable from 2008 –2013)
Packet Pg. 617
Item 15
Appendix & References
1.Demographics of SLO
•Figure 1: American Community Survey (ACS) 2016
& One Percent City Population Growth Projection
from the SLO General Plan
•Figure 2: ACS & 2000 Census
3.Police: Noise and Calls for Service
•Figure 3: SLO Police Department
•Figure 4: SLOPD COMPSTAT -Noise
4.Police: Property and Violent
•Figure 5: FBI Uniform Crime Reporting Statistics
•Figure 6: SLO Police Department data and 2017 Crime
Report to City Council
5.Homeless Population
•Figure 7: Top 15 Reports Filed on Homeless individual,
SLOPD
•Figure 8: Homeless City Council Info from SLOPD
•Figure 9: SAN LUIS OBISPO COUNTY Homeless Point-in-
Time Census & Survey 2015 &
6.Fire Department: Calls for Service
•Figure 10: City of San Luis Obispo Fire Department 2017
Statistical Summary
7.Fire: Prominent Populations
•Figure 11: City of San Luis Obispo Fire Department 2017
Statistical Summary
•Figure 12: City of San Luis Obispo Fire Department 2017
Statistical Summary
8.Future of Cal Poly
••Figure 13: Cal Poly 2035 Master Plan
•Master Plan Comprehensive, Public Review Draft Master
Plan, 11/17
9.Millennial Trends
•Figure 14: Zipcar Survey: Millennials & Technology, 02/13
•THE MILLENNIAL GENERATION, Brookings institute
Report 01/18
•Pew Research Center
10.Citizen Satisfaction
•Infrastructure Projects Important to Residents:
Funding the Future of SLO Power Point; Data
from FM3 Research
•City Services Important to Residents: Funding the
Future of SLO Power Point; Data from FM3
Research
•Major City Goals and Objectives: SLO City Power Point 7-
10-2018, Slide 13
11.Tourism
•TOT & OCC Comparision from TBID
12.Housing in SLO
•Figure 18: 2017 General Annual Plan; Source: 2017 Building
Permits Finaled, Community Development Department.
Created Graph from numbers
•Figure 19: Numbers came from 2017 General Annual
Plan; Source: 2017 Building Permits Finaled, Community
Development Department. Created Graph from numbers
13.Jobs in SLO
•Figure 19: Created Graph from numbers in American
Community Survey, Income, Years 2009 –2016
•Figure 20: Created graph from numbers in Bureau of
Labor Statistics. Tables & Calculators by Subject,
Unemployment Rate, for U.S, California, and San Luis
Obispo, Years 2008 –2018.
14.City Finances
•Figure 21: SLO City Presentation 7-10-18, Slide 8.
•Figure 22: 5-Year Fiscal Forecast –Revenues and
Expenditures from Council Presentation 6-5-2018, Slide
35.
15.City Employees
•Figure 23: Created Graph from Excel Data Sheet. Excel
Data Sheet: Turnover Tracking Log CityWide., from
Human Resources Department
•Figure 24: Excel Data Sheet: New Employee Zip Code for
Ryan, from Human Resources Department. Map created
with GGMAP and Zip Codes Package. Product created in
the R Project
16.City Employee Trends
•Figure 25: Graph created from Excel Data Sheet: New
Employee Hire Log, from Human Resources Department.
•Figure 26: Graph exported from Excel Data Sheet:
Turnover Tracking Log CityWide, from Human Resources
Department.
•Figure 27: Graph exported from Excel Data Sheet:
Turnover Tracking Log CityWide, from Human Resources
Department.
17.Public Transit
•Figure 28: Graph created from Excel Data Sheet Fuel
Usage Cal Poly and Pass Stats, from Department of
Transit.
•Figure 29: Graph created from Excel Data Sheet: Transit
KPI Indicator, from Department of Transit.
18.Active Transport
•Figure 30: Graph created from Excel Data Sheet: _Master
Segment Counts, from Department of Public Works.
•Chart from:
•Infographics from:
19.Collision Trends
•Figure 31: Numbers taken from 2016 Traffic Safety Report,
Pg 7 from Public Works and Police Department. Created
Graphic with numbers from report.
•Statistics in Figure 31: taken from 2016 Traffic Safety
Report, Pg 9 from Public Works and Police Department.
•Background Collision Areas Taken from 2016 Traffic
Safety Report, Pg 22, Figure 1, from Public Works and
Police Department.
20.Water
•Data model usage from utilities
•Figure 32: 80-17 Demand and population
•Figure 33: Sum of rounded GPCD 05-15
21.Climate Change
•Figure 34: Created Graph from CA Government, Cal Fire,
Incident Information. Combination of:
•Acres data from 2010-2015 Wildlife Activity Statistical Annual
Report; Under Acres Burned, section Number of Acres Burned by
Vegetation Type, by Unit and by County –Southern Region.
•Dollar Damage from 2010-2015 Wildlife Activity Statistical Annual
Report; Under Dollar Damage, section Dollar Damage by Size
Class, by Unit and by County –Southern Region.
•Figure 35: Created Graph from CA Government, Cal Fire,
Incident Information. Combination of:
•Acres data from 2010-2015 Wildlife Activity Statistical Annual
Report; Under Acres Burned, section Number of Acres Burned by
Vegetation Type, by Unit and by County –Southern Region.
•Acres data from 2016 Wildlife Activity Statistical Annual Report;
Under Fire Activity Statewide, Graphics 1-10, Graphic Figure 2.
Number of Acres Burned –2007-2016.
•First Text Box: Information from Climate Change Impacts in
California, State of California Department of Justice, Xavier
Becerra: Attorney General.
•Second Text Box information from CA Government, Cal Fire,
Incident Information:
•2015 Large Fire List and 2015 Wildlife Activity
Statistical Annual Report; Under Dollar Damage,
section Dollar Damage by Size Class, by Unit and by
County –Southern Region
•2016 Large fire list and 2016 Wildlife Activity
Statistical Annual Report; Under Dollar Damage,
section Dollar Damage by Size Class, by Unit and by
County –Southern Region.
23Produced by Andrew Harris & Georgina Bailey, 2018 Packet Pg. 618
Item 15
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Item 15
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blank.
Packet Pg. 620
Item 15
Meeting Date: 11/13/2018
FROM: Robert A. Hill, Interim Deputy Director, Office of Sustainability
Prepared By: Chris Read, Sustainability Manager
SUBJECT: COMMUNITY CHOICE ENERGY PROGRAM OPTIONS INCLUDING
INTRODUCING AN ORDINANCE AND ADOPTING A RESOLUTION TO
JOIN MONTEREY BAY COMMUNITY POWER
RECOMMENDATION
Report with recommendation will be included in Council Agenda Report available on Friday
November 9, 2018.
DISCUSSION
The first meeting of the Board of Directors of Central Coast Community Energy (CCCE) will
take place on November 7, 2018 from 3:00 to 5:00 PM at 990 Palm Street, San Luis Obispo, CA.
Item No. 5 on that agenda includes a discussion of several options for moving forward with
implementation of a Community Choice Energy program. Depending on the outcome and
direction received on Item No. 5 from the CCCE Board of Directors, further action may be
requested of the City Council of the City of San Luis Obispo including introducing an ordinance
and adopting a resolution to join Monterey Bay Community Power. If so, a complete Council
Agenda Report detailing the prospective action will be available for the City Council and general
public’s review at least 72 hours prior to the November 13, 2018 City Council meeting.
Packet Pg. 621
Item 16