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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: Packet Pg. 7 Item 1 • 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. Packet Pg. 8 Item 1 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. Packet Pg. 9 Item 1 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. Packet Pg. 10 Item 1 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 Packet Pg. 11 Item 1 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. Packet Pg. 12 Item 1 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. Packet Pg. 13 Item 1 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. Packet Pg. 14 Item 1 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 Packet Pg. 15 Item 1 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 Packet Pg. 16 Item 1 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. Packet Pg. 17 Item 1 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. Packet Pg. 18 Item 1 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. Packet Pg. 19 Item 1 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. Packet Pg. 20 Item 1 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 Packet Pg. 21 Item 1 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 Packet Pg. 22 Item 1 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? Packet Pg. 23 Item 1 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? Packet Pg. 24 Item 1 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 Packet Pg. 25 Item 1 City of San Luis Obispo Parking Services FY 2017-18 ANNUAL REPORT Prepared by: Parking Services, a Division of the Public Works Department Packet Pg. 26 Item 1 This page is intentionally left blank Packet Pg. 27 Item 1 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 Packet Pg. 28 Item 1 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 Packet Pg. 29 Item 1 Packet Pg. 30 Item 1 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 Packet Pg. 31 Item 1 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. Packet Pg. 32 Item 1 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) Packet Pg. 33 Item 1 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. Packet Pg. 34 Item 1 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 Packet Pg. 35 Item 1 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 Packet Pg. 36 Item 1 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. Packet Pg. 37 Item 1 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 Packet Pg. 38 Item 1 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) Packet Pg. 39 Item 1 • 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. Packet Pg. 40 Item 1 Downtown Parking Rate Zone Map (Updated Fall 2018) Packet Pg. 41 Item 1 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 Packet Pg. 42 Item 1 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 Packet Pg. 43 Item 1 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.) Packet Pg. 44 Item 1 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 Packet Pg. 45 Item 1 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 Packet Pg. 46 Item 1 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. Packet Pg. 47 Item 1 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. Packet Pg. 48 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 Packet Pg. 49 Item 1 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 Item 1 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 Packet Pg. 51 Item 1 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. 1 Packet Pg. 52 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% 2 Packet Pg. 53 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% 3 Packet Pg. 54 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.” Packet Pg. 55 Item 1 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 Packet Pg. 56 Item 1 ACCESS MANAGEMENT & PARKING STRATEGY Packet Pg. 57 Item 1 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 3 Packet Pg. 58 Item 1 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 . 5 Packet Pg. 59 Item 1 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. 7 Packet Pg. 60 Item 1 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 Packet Pg. 61 Item 1 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 . 11 Packet Pg. 62 Item 1 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 Packet Pg. 63 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: 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 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 $$$ travel options district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options 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 $$$ travel options district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options 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 district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options 15 Packet Pg. 64 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 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 17 Packet Pg. 65 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 district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options district management codepricing TOOLS FOR CHANGE technology parking $$$ travel options ACCESS MANAGEMENT & PARKING STRATEGY 19 Packet Pg. 66 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) 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 21 Packet Pg. 67 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 Broadwa yB roadwa y Br o a d w a y Arapahoe AveFoothills PkwyBroadway28th St28th StPearl St 75th St755th StFoothills PkwyLouisville Erie BROA D W A Y BRO A D W A Y GOLDE NR OD 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 Packet Pg. 74 Item 1 Packet Pg. 75 Item 1 Page intentionally left blank. Packet Pg. 76 Item 1 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 Packet Pg. 77 Item 4 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 Packet Pg. 78 Item 4 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. Packet Pg. 79 Item 4 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. Packet Pg. 80 Item 4 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 Packet Pg. 81 Item 4 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--- Packet Pg. 82 Item 4 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.” Packet Pg. 83 Item 4 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). Packet Pg. 84 Item 4 San Luis Obispo City Council Minutes of October 16, 2018 Page 7 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--- Packet Pg. 85 Item 4 San Luis Obispo City Council Minutes of October 16, 2018 Page 8 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 Packet Pg. 86 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. Packet Pg. 87 Item 5 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. Packet Pg. 88 Item 5 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 Packet Pg. 89 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 Packet Pg. 90 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 Packet Pg. 91 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. Packet Pg. 93 Item 6 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. Packet Pg. 94 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. Packet Pg. 95 Item 7 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. Packet Pg. 96 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; Packet Pg. 97 Item 8 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 Packet Pg. 98 Item 8 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. Packet Pg. 99 Item 8 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 Packet Pg. 100 Item 8 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). Packet Pg. 101 Item 8 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. Packet Pg. 102 Item 8 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 Packet Pg. 103 Item 8 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 Packet Pg. 104 Item 8 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 Packet Pg. 105 Item 8 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. Packet Pg. 106 Item 8 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. Packet Pg. 107 Item 8 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 Packet Pg. 120 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 Packet Pg. 121 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 Packet Pg. 122 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 Packet Pg. 123 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 Packet Pg. 124 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' Packet Pg. 125 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 Packet Pg. 126 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 Packet Pg. 127 Item 9 Packet Pg. 128 Item 9 Packet Pg. 129 Item 9 Packet Pg. 130 Item 9 Packet Pg. 131 Item 9 Packet Pg. 132 Item 9 Packet Pg. 133 Item 9 Page intentionally left blank. Packet Pg. 134 Item 9 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. Packet Pg. 135 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). Packet Pg. 136 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 Packet Pg. 137 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. . Packet Pg. 138 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 Packet Pg. 139 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 Packet Pg. 140 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. Ver 3.0 (April 2014) Page 1 of 13 Packet Pg. 141 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. Ver 3.0 (April 2014) Page 2 of 13 Packet Pg. 142 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. Ver 3. 0 (April 2014) Page 3 of 13 Packet Pg. 143 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 Ver 3.0 (April 2014) Page 4 of 13 Packet Pg. 144 Item 10 Pacific Gas and Electric Company Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 8 Agreement No: SST-XXXXX Customer name) 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 Ver 3.0 (April 2014) Page 5 of 13 Packet Pg. 145 Item 10 Pacific Gas and Electric Company Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 9 Agreement No: SST-XXXXX Customer name) 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, Ver 3.0 (April 2014) Page 6 of 13 Packet Pg. 146 Item 10 Pacific Gas and Electric Company Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 10 Agreement No: SST-XXXXX Customer name) 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 Ver 3.0 (April 2014) Page 7 of 13 Packet Pg. 147 Item 10 Pacific Gas and Electric Company Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 11 Agreement No: SST-XXXXX Customer name 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. Ver 3.0 (April 2014) Page 8 of 13 Packet Pg. 148 Item 10 rPd. IE Pacific Gas and Electric Company Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 12 Agreement No: SST-XXXXX Customer name) 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. Ver 3. 0 (April 2014) Page 9 of 13 Packet Pg. 149 Item 10 Pacific Gas and Electric Company Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 13 Agreement No: SST-XXXXX Customer name) 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 Ver 3.0 (April 2014) Page 10 of 13 Packet Pg. 150 Item 10 Pacific Gas and Electric Company Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 14 Agreement No: SST-XXXXX Customer name) 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: Ver 3.0 (April 2014) Page 1 l of 13 Packet Pg. 151 Item 10 Pacific Gas and Electric Company Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 15 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. 13Packet Pg. 152 Item 10 Resolution No. 10878 (2018 Series) - EXHIBIT A, Page 16 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: 14 Packet Pg. 153 Item 10 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). R 10931 Packet Pg. 154 Item 10 Resolution No. 10931 (2018 Series) Page 2 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 R 10931 Packet Pg. 155 Item 10 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. Packet Pg. 156 Item 10 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 Packet Pg. 157 Item 10 Packet Pg. 158 Item 10 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. Packet Pg. 159 Item 11 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 Packet Pg. 160 Item 11 Packet Pg. 161 Item 11 Packet Pg. 162 Item 11 Packet Pg. 163 Item 11 Packet Pg. 164 Item 11 Packet Pg. 165 Item 11 Packet Pg. 166 Item 11 Packet Pg. 167 Item 11 Packet Pg. 168 Item 11 Packet Pg. 169 Item 11 Packet Pg. 170 Item 11 Packet Pg. 171 Item 11 Packet Pg. 172 Item 11 Packet Pg. 173 Item 11 Packet Pg. 174 Item 11 Packet Pg. 175 Item 11 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 Packet Pg. 176 Item 11 JOB ORDER CONTRACT – 2018 – TREE MAINTENANCE Specification No. 1000003 Approval Date: November 13, 2018 November 14, 2018 Packet Pg. 177 Item 11 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  Packet Pg. 178 Item 11 NOTICE TO BIDDERS i 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. Packet Pg. 179 Item 11 NOTICE TO BIDDERS NOTICE TO BIDDERS 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. Packet Pg. 180 Item 11 NOTICE TO BIDDERS NOTICE TO BIDDERS 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 Packet Pg. 181 Item 11 NOTICE TO BIDDERS NOTICE TO BIDDERS 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. Packet Pg. 182 Item 11 NOTICE TO BIDDERS NOTICE TO BIDDERS v 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. Packet Pg. 183 Item 11 BID FORMS 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 Packet Pg. 184 Item 11 BID FORMS BID FORMS B 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. Packet Pg. 185 Item 11 BID FORMS BID FORMS C 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. Packet Pg. 186 Item 11 BID FORMS BID FORMS D 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 Packet Pg. 187 Item 11 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. Packet Pg. 188 Item 11 BID FORMS BID FORMS F 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:____________________ Packet Pg. 189 Item 11 BID FORMS BID FORMS G 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 Packet Pg. 190 Item 11 BID FORMS 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 □ Packet Pg. 191 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) Packet Pg. 192 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. Packet Pg. 193 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. Packet Pg. 194 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. Packet Pg. 195 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. Packet Pg. 196 Item 11 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. Packet Pg. 197 Item 11 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. Packet Pg. 198 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: Packet Pg. 199 Item 11 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 Packet Pg. 200 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 Packet Pg. 201 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   Packet Pg. 203 Item 11 Page intentionally left blank. Packet Pg. 204 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. Packet Pg. 205 Item 12 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. Packet Pg. 206 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. Packet Pg. 207 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. Packet Pg. 208 Item 12 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 Packet Pg. 209 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; Packet Pg. 210 Item 12 Resolution No. _____ (2018 Series) Page 2 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. Packet Pg. 211 Item 12 Resolution No. _____ (2018 Series) Page 3 R ______ 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. Packet Pg. 212 Item 12 Resolution No. _____ (2018 Series) Page 4 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 Packet Pg. 213 Item 12 A-1 4151-8087-4004 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 Packet Pg. 214 Item 12 A-2 4151-8087-4004 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. Packet Pg. 215 Item 12 A-3 4151-8087-4004 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 Packet Pg. 216 Item 12 4151-8087-4004 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] Packet Pg. 217 Item 12 B-1 4151-8087-4004 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__ Packet Pg. 218 Item 12 B-2 4151-8087-4004 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. Packet Pg. 219 Item 12 B-3 4151-8087-4004 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. Packet Pg. 220 Item 12 B-4 4151-8087-4004 “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 Packet Pg. 221 Item 12 B-5 4151-8087-4004 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. Packet Pg. 222 Item 12 B-6 4151-8087-4004 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. Packet Pg. 223 Item 12 B-7 4151-8087-4004 (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 Packet Pg. 224 Item 12 B-8 4151-8087-4004 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: Packet Pg. 225 Item 12 B-9 4151-8087-4004 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 Packet Pg. 226 Item 12 B-10 4151-8087-4004 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] Packet Pg. 227 Item 12 B-11 4151-8087-4004 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) Packet Pg. 228 Item 12 B-12 4151-8087-4004 EXHIBIT A TO THE ACQUISITION AGREEMENT DESCRIPTION OF ACQUISITION IMPROVEMENTS AND BUDGETED AMOUNTS ACQUISITION IMPROVEMENTS BUDGETED AMOUNTS 1. $ 2. 3. 4. Packet Pg. 229 Item 12 B-13 4151-8087-4004 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: Packet Pg. 230 Item 12 C-1 4151-8087-4004 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] Packet Pg. 231 Item 12 4151-8087-4004 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] Packet Pg. 232 Item 12 4148-4678-6577.1 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM “SCIP” MANUAL OF PROCEDURES Version 2.3.1 [Last Revised February 2018] Packet Pg. 233 Item 12 4148-4678-6577.1 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 Packet Pg. 234 Item 12 4148-4678-6577.1 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 Packet Pg. 235 Item 12 i 4148-4678-6577.1 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 Packet Pg. 236 Item 12 ii 4148-4678-6577.1 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 Packet Pg. 237 Item 12 iii 4148-4678-6577.1 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 Packet Pg. 238 Item 12 iv 4148-4678-6577.1 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. Packet Pg. 239 Item 12 v 4148-4678-6577.1 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. Packet Pg. 240 Item 12 4148-4678-6577.1 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 Packet Pg. 241 Item 12 1-1 4148-4678-6577.1 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. Packet Pg. 242 Item 12 2-1 4148-4678-6577.1 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. Packet Pg. 243 Item 12 2-2 4148-4678-6577.1 (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). Packet Pg. 244 Item 12 3-1 4148-4678-6577.1 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 Packet Pg. 245 Item 12 3-2 4148-4678-6577.1 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 Packet Pg. 246 Item 12 3-3 4148-4678-6577.1 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. Packet Pg. 247 Item 12 4-1 4148-4678-6577.1 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 Packet Pg. 248 Item 12 4-2 4148-4678-6577.1 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. Packet Pg. 249 Item 12 4-3 4148-4678-6577.1 (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. Packet Pg. 250 Item 12 5-1 4148-4678-6577.1 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. Packet Pg. 251 Item 12 5-2 4148-4678-6577.1 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. Packet Pg. 252 Item 12 6-1 4148-4678-6577.1 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 Packet Pg. 253 Item 12 6-2 4148-4678-6577.1 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. Packet Pg. 254 Item 12 7-1 4148-4678-6577.1 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. Packet Pg. 255 Item 12 7-2 4148-4678-6577.1 (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 Packet Pg. 256 Item 12 7-3 4148-4678-6577.1 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. Packet Pg. 257 Item 12 7-4 4148-4678-6577.1 (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. Packet Pg. 258 Item 12 8-1 4148-4678-6577.1 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. Packet Pg. 259 Item 12 9-1 4148-4678-6577.1 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 Packet Pg. 260 Item 12 9-2 4148-4678-6577.1 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). Packet Pg. 261 Item 12 4148-4678-6577.1 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. Packet Pg. 262 Item 12 4148-4678-6577.1 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. Packet Pg. 263 Item 12 4148-4678-6577.1 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. Packet Pg. 264 Item 12 4148-4678-6577.1 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. Packet Pg. 265 Item 12 4148-4678-6577.1 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 Packet Pg. 266 Item 12 A-1 4148-4678-6577.1 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. Packet Pg. 267 Item 12 A-2 4148-4678-6577.1 Signed:_____________________________________________________Dated: _______________________________ Packet Pg. 268 Item 12 A-3 4148-4678-6577.1 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? Packet Pg. 269 Item 12 A-4 4148-4678-6577.1 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. Packet Pg. 270 Item 12 A-5 4148-4678-6577.1 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. Packet Pg. 271 Item 12 A-6 4148-4678-6577.1 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. Packet Pg. 272 Item 12 A-7 4148-4678-6577.1 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 Packet Pg. 273 Item 12 B-1 4148-4678-6577.1 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) : __________________________________________ Packet Pg. 274 Item 12 C-1 4148-4678-6577.1 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 Packet Pg. 275 Item 12 C-2 4148-4678-6577.1 (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). Packet Pg. 276 Item 12 D-1 4148-4678-6577.1 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 Packet Pg. 277 Item 12 D-2 4148-4678-6577.1 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. Packet Pg. 278 Item 12 D-3 4148-4678-6577.1 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__. Packet Pg. 279 Item 12 D-4 4148-4678-6577.1 EXHIBIT A District Name (County) Assessment/Local Obligation Amount 1. 2. [List Separate Assessment Districts] [Amount] 3. 4. 5. 6. 7. 8. 9. 10. Packet Pg. 280 Item 12 E-1 4148-4678-6577.1 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 Packet Pg. 281 Item 12 E-2 4148-4678-6577.1 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 Packet Pg. 282 Item 12 E-3 4148-4678-6577.1 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__. Packet Pg. 283 Item 12 E-4 4148-4678-6577.1 EXHIBIT A District Name (County) Local Obligation Amount 1. 2. 3. [List of Individual Assessment Districts] [Amount] 4. 5. 6. 7. 8 9. 10. Packet Pg. 284 Item 12 F-1 4148-4678-6577.1 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 Packet Pg. 285 Item 12 F-2 4148-4678-6577.1 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 Packet Pg. 286 Item 12 F-3 4148-4678-6577.1 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__. Packet Pg. 287 Item 12 G-1-1 4148-4678-6577.1 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 Packet Pg. 288 Item 12 G-1-2 4148-4678-6577.1 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. Packet Pg. 289 Item 12 G-1-3 4148-4678-6577.1 * * * 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 ______________________________ Packet Pg. 290 Item 12 G-1-4 4148-4678-6577.1 EXHIBIT A TO FORM OF SCIP RESOLUTION FORM OF RESOLUTION OF INTENTION TO BE ADOPTED BY CSCDA (SEE APPENDIX I) Packet Pg. 291 Item 12 G-1-5 4148-4678-6577.1 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__ Packet Pg. 292 Item 12 G-1-6 4148-4678-6577.1 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. Packet Pg. 293 Item 12 G-1-7 4148-4678-6577.1 “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 Packet Pg. 294 Item 12 G-1-8 4148-4678-6577.1 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. Packet Pg. 295 Item 12 G-1-9 4148-4678-6577.1 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 Packet Pg. 296 Item 12 G-1-10 4148-4678-6577.1 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 Packet Pg. 297 Item 12 G-1-11 4148-4678-6577.1 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. Packet Pg. 298 Item 12 G-1-12 4148-4678-6577.1 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] Packet Pg. 299 Item 12 G-1-13 4148-4678-6577.1 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) Packet Pg. 300 Item 12 G-1-14 4148-4678-6577.1 Exhibit A to Acquisition Agreement DESCRIPTION OF ACQUISITION IMPROVEMENTS AND BUDGETED AMOUNTS ACQUISITION IMPROVEMENTS 1. 2. 3. 4. BUDGETED AMOUNTS Packet Pg. 301 Item 12 G-1-15 4148-4678-6577.1 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: Packet Pg. 302 Item 12 G-1-16 4148-4678-6577.1 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] Packet Pg. 303 Item 12 G-2-1 4148-4678-6577.1 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. Packet Pg. 304 Item 12 G-2-2 4148-4678-6577.1 • 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. Packet Pg. 305 Item 12 G-3-1 4148-4678-6577.1 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] Packet Pg. 306 Item 12 H-1 4148-4678-6577.1 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) Packet Pg. 307 Item 12 I-1 4148-4678-6577.1 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 Packet Pg. 308 Item 12 I-2 4148-4678-6577.1 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.] Packet Pg. 309 Item 12 J-1 4148-4678-6577.1 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. Packet Pg. 310 Item 12 J-2 4148-4678-6577.1 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] Packet Pg. 311 Item 12 K-1 4148-4678-6577.1 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 Packet Pg. 312 Item 12 K-2 4148-4678-6577.1 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: ________________________ Packet Pg. 313 Item 12 K-3 4148-4678-6577.1 Secretary, California Statewide Communities Development Authority Enclosures: Engineer’s Report Official Property Owner Assessment Ballot Return Envelope Packet Pg. 314 Item 12 L-1 4148-4678-6577.1 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. Packet Pg. 315 Item 12 L-2 4148-4678-6577.1 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______________________________________ Packet Pg. 316 Item 12 L-3 4148-4678-6577.1 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 Packet Pg. 317 Item 12 M-1 4148-4678-6577.1 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 Packet Pg. 318 Item 12 N-1 4148-4678-6577.1 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. Packet Pg. 319 Item 12 N-2 4148-4678-6577.1 Dated: [Program Series Closing Date] [CITY OF _____/COUNTY OF _____] _____________________________ Authorized Representative Packet Pg. 320 Item 12 N-3 4148-4678-6577.1 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 Packet Pg. 321 Item 12 N-4 4148-4678-6577.1 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. Packet Pg. 322 Item 12 O-1 4148-4678-6577.1 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. Packet Pg. 323 Item 12 P-1 4148-4678-6577.1 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. Packet Pg. 324 Item 12 P-2 4148-4678-6577.1 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. Packet Pg. 325 Item 12 Q-1 4148-4678-6577.1 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: Packet Pg. 326 Item 12 R-1 4148-4678-6577.1 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. Packet Pg. 327 Item 12 R-2 4148-4678-6577.1 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. Packet Pg. 328 Item 12 R-3 4148-4678-6577.1 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; Packet Pg. 329 Item 12 R-4 4148-4678-6577.1 • 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; Packet Pg. 330 Item 12 R-5 4148-4678-6577.1 • 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 Packet Pg. 331 Item 12 R-6 4148-4678-6577.1 • 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. Packet Pg. 332 Item 12 S-1 4148-4678-6577.1 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 Packet Pg. 333 Item 12 T-1 4148-4678-6577.1 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 Packet Pg. 334 Item 12 U-1 4148-4678-6577.1 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] Packet Pg. 335 Item 12 V-1 4148-4678-6577.1 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. Packet Pg. 336 Item 12 V-2 4148-4678-6577.1 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. _________________________________________ Packet Pg. 337 Item 12 Page intentionally left blank. Packet Pg. 338 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. Packet Pg. 339 Item 13 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 Packet Pg. 340 Item 13 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) Packet Pg. 341 Item 13 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 Packet Pg. 342 Item 13 THIS PAGE INTENTIONALLY LEFT BLANK Packet Pg. 343 Item 13 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 Packet Pg. 344 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 ii 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 Packet Pg. 345 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 iii 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 Packet Pg. 346 Item 13 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 Packet Pg. 347 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 1 2017 cx9ii18 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. Packet Pg. 348 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 2 2017 cx9ii18 “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 Packet Pg. 349 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 3 2017 cx9ii18 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. Packet Pg. 350 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 4 2017 cx9ii18 "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. Packet Pg. 351 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 5 2017 cx9ii18 "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 Packet Pg. 352 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 6 2017 cx9ii18 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. Packet Pg. 353 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 7 2017 cx9ii18 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; Packet Pg. 354 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 8 2017 cx9ii18 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; Packet Pg. 355 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 9 2017 cx9ii18 (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. Packet Pg. 356 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 10 2017 cx9ii18 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. Packet Pg. 357 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 11 2017 cx9ii18 (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. Packet Pg. 358 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 12 2017 cx9ii18 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 Packet Pg. 359 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 13 2017 cx9ii18 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. Packet Pg. 360 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 14 2017 cx9ii18 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. Packet Pg. 361 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 15 2017 cx9ii18 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. Packet Pg. 362 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 16 2017 cx9ii18 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. Packet Pg. 363 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 17 2017 cx9ii18 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: Packet Pg. 364 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 18 2017 cx9ii18 (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. Packet Pg. 365 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 19 2017 cx9ii18 (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. Packet Pg. 366 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 20 2017 cx9ii18 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. Packet Pg. 367 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 21 2017 cx9ii18 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. Packet Pg. 368 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 22 2017 cx9ii18 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. Packet Pg. 369 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 23 2017 cx9ii18 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. Packet Pg. 370 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 24 2017 cx9ii18 (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. Packet Pg. 371 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 25 2017 cx9ii18 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 Packet Pg. 372 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 26 2017 cx9ii18 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 Packet Pg. 373 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 27 2017 cx9ii18 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 Packet Pg. 374 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 28 2017 cx9ii18 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. Packet Pg. 375 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 29 2017 cx9ii18 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. Packet Pg. 376 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 30 2017 cx9ii18 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: _________________________________ Packet Pg. 377 Item 13 City of San Luis Obispo 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; Packet Pg. 378 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 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.” Packet Pg. 379 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 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. Packet Pg. 380 Item 13 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. Packet Pg. 381 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 Packet Pg. 382 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. Packet Pg. 383 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 Packet Pg. 384 Item 13 City of San Luis Obispo 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 Packet Pg. 385 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 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. Packet Pg. 386 Item 13 City of San Luis Obispo 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/ . Packet Pg. 387 Item 13 City of San Luis Obispo 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. Packet Pg. 388 Item 13 City of San Luis Obispo 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 Packet Pg. 389 Item 13 City of San Luis Obispo 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. Packet Pg. 390 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 EXHIBIT G – DAVIS-BACON REQUIREMENTS 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 Packet Pg. 391 Item 13 City of San Luis Obispo Agreement No.: SWRCB0000000000D180100300 Project No.: C-06-8029-110 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. Packet Pg. 392 Item 13 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; Packet Pg. 393 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. Packet Pg. 394 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 Packet Pg. 395 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 Packet Pg. 396 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. Packet Pg. 397 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 Packet Pg. 398 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. Packet Pg. 399 Item 13 Packet Pg. 400 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 Packet Pg. 401 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 Packet Pg. 402 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. . Packet Pg. 403 Item 14 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 Packet Pg. 404 Item 14 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. Packet Pg. 405 Item 14 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 Packet Pg. 406 Item 14 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 Packet Pg. 407 Item 14 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 Packet Pg. 408 Item 14 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 Packet Pg. 409 Item 14 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. Packet Pg. 410 Item 14 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 Packet Pg. 411 Item 14 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 Packet Pg. 412 Item 14 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 Packet Pg. 413 Item 14 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. Packet Pg. 414 Item 14 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. Packet Pg. 415 Item 14 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. Packet Pg. 416 Item 14 City of San Luis Obispo 6 Community Workforce Agreement 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; Packet Pg. 417 Item 14 City of San Luis Obispo 7 Community Workforce Agreement 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; Packet Pg. 418 Item 14 City of San Luis Obispo 8 Community Workforce Agreement 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. Packet Pg. 419 Item 14 City of San Luis Obispo 9 Community Workforce Agreement 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 Packet Pg. 420 Item 14 City of San Luis Obispo 10 Community Workforce Agreement 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 Packet Pg. 421 Item 14 City of San Luis Obispo 11 Community Workforce Agreement 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 Packet Pg. 422 Item 14 City of San Luis Obispo 12 Community Workforce Agreement 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 Packet Pg. 423 Item 14 City of San Luis Obispo 13 Community Workforce Agreement 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”. Packet Pg. 424 Item 14 City of San Luis Obispo 14 Community Workforce Agreement 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. Packet Pg. 425 Item 14 City of San Luis Obispo 15 Community Workforce Agreement 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 Packet Pg. 426 Item 14 City of San Luis Obispo 16 Community Workforce Agreement 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 Packet Pg. 427 Item 14 City of San Luis Obispo 17 Community Workforce Agreement 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 Packet Pg. 428 Item 14 City of San Luis Obispo 18 Community Workforce Agreement 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. Packet Pg. 429 Item 14 City of San Luis Obispo 19 Community Workforce Agreement 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. Packet Pg. 430 Item 14 City of San Luis Obispo 20 Community Workforce Agreement 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 Packet Pg. 431 Item 14 City of San Luis Obispo 21 Community Workforce Agreement 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 Packet Pg. 432 Item 14 City of San Luis Obispo 22 Community Workforce Agreement 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; Packet Pg. 433 Item 14 City of San Luis Obispo 23 Community Workforce Agreement 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 Packet Pg. 434 Item 14 City of San Luis Obispo 24 Community Workforce Agreement 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 Packet Pg. 435 Item 14 City of San Luis Obispo 25 Community Workforce Agreement 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 Packet Pg. 436 Item 14 City of San Luis Obispo 26 Community Workforce Agreement 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. Packet Pg. 437 Item 14 City of San Luis Obispo 27 Community Workforce Agreement 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 Packet Pg. 438 Item 14 City of San Luis Obispo 28 Community Workforce Agreement 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 Packet Pg. 439 Item 14 City of San Luis Obispo 29 Community Workforce Agreement 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 Packet Pg. 440 Item 14 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. Packet Pg. 441 Item 14 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. Packet Pg. 442 Item 14 City of San Luis Obispo 32 Community Workforce Agreement CITY OF SAN LUIS OBISPO TRI-COUNTIES BUILDING & CONSTRUCTION TRADES COUNCIL By: ________________________________ By: ________________________________ Tony Skinner, Executive Secretary Dated: ___________________________ Dated: ___________________________ Packet Pg. 443 Item 14 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 _________________________ Packet Pg. 444 Item 14 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] Packet Pg. 445 Item 14 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) Packet Pg. 446 Item 14 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: ________________________________________________________________ Packet Pg. 447 Item 14 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.] Packet Pg. 448 Item 14 City of San Luis Obispo 38 Community Workforce Agreement 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 Packet Pg. 449 Item 14 City of San Luis Obispo 39 Community Workforce Agreement 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 Packet Pg. 450 Item 14 City of San Luis Obispo 40 Community Workforce Agreement 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 Packet Pg. 451 Item 14 City of San Luis Obispo 41 Community Workforce Agreement 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. Packet Pg. 452 Item 14 City of San Luis Obispo 42 Community Workforce Agreement 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 Packet Pg. 453 Item 14 City of San Luis Obispo 43 Community Workforce Agreement 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. Packet Pg. 454 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. Item 13 Packet Pg. 177Packet Pg. 455 Item 14 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 Item 13 Packet Pg. 178Packet Pg. 456 Item 14 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 Item 13 Packet Pg. 179Packet Pg. 457 Item 14 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 Item 13 Packet Pg. 180Packet Pg. 458 Item 14 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. Item 13 Packet Pg. 181Packet Pg. 459 Item 14 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. Item 13 Packet Pg. 182Packet Pg. 460 Item 14 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 Item 13 Packet Pg. 183Packet Pg. 461 Item 14 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. Item 13 Packet Pg. 184Packet Pg. 462 Item 14 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 Item 13 Packet Pg. 185Packet Pg. 463 Item 14 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 Item 13 Packet Pg. 186Packet Pg. 464 Item 14 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 Item 13 Packet Pg. 187Packet Pg. 465 Item 14 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. Item 13 Packet Pg. 188Packet Pg. 466 Item 14 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 Item 13 Packet Pg. 189Packet Pg. 467 Item 14 Page intentionally left blank. Packet Pg. 190 Item13Item13 Packet Pg. 468 Item 14 7/10/2018 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 Staff Presentation - Item 13 Packet Pg. 469 Item 14 7/10/2018 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 Staff Presentation - Item 13 Packet Pg. 470 Item 14 7/10/2018 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 Staff Presentation - Item 13 Packet Pg. 471 Item 14 Slide 6 JP2 Boiler plate slides from all WRRF presentations, not sure we want to spend time here. Justin Pickard, 7/5/2018 Staff Presentation - Item 13 Packet Pg. 472 Item 14 7/10/2018 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 Staff Presentation - Item 13 Packet Pg. 473 Item 14 7/10/2018 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 Staff Presentation - Item 13 Packet Pg. 474 Item 14 7/10/2018 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 Staff Presentation - Item 13 Packet Pg. 475 Item 14 7/10/2018 7 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 Staff Presentation - Item 13 Packet Pg. 476 Item 14 7/10/2018 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 Staff Presentation - Item 13 Packet Pg. 477 Item 14 7/10/2018 9 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 Staff Presentation - Item 13 Packet Pg. 478 Item 14 7/10/2018 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. Staff Presentation - Item 13 Packet Pg. 479 Item 14 7/10/2018 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 Staff Presentation - Item 13 Packet Pg. 480 Item 14 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. Packet Pg. 481 Item 14 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. Packet Pg. 482 Item 14 (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. Packet Pg. 483 Item 14 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 Packet Pg. 484 Item 14 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. Packet Pg. 485 Item 14 Page intentionally left blank. Packet Pg. 486 Item 14 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. Packet Pg. 487 Item 15 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. Packet Pg. 488 Item 15 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. Packet Pg. 489 Item 15 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 Packet Pg. 490 Item 15 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 Packet Pg. 491 Item 15 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. Packet Pg. 492 Item 15 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. Packet Pg. 493 Item 15 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. Packet Pg. 494 Item 15 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. Packet Pg. 495 Item 15 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. Packet Pg. 496 Item 15 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. Packet Pg. 497 Item 15 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 Packet Pg. 498 Item 15 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 Packet Pg. 499 Item 15 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 Packet Pg. 500 Item 15 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. Packet Pg. 501 Item 15 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. Packet Pg. 502 Item 15 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 Packet Pg. 503 Item 15 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. Packet Pg. 504 Item 15 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 Packet Pg. 505 Item 15 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 Packet Pg. 506 Item 15 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. Packet Pg. 507 Item 15 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 Packet Pg. 508 Item 15 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. Packet Pg. 509 Item 15 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. Packet Pg. 510 Item 15 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 Packet Pg. 511 Item 15 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. Packet Pg. 512 Item 15 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. Packet Pg. 513 Item 15 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. Packet Pg. 514 Item 15 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 Packet Pg. 515 Item 15 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 Packet Pg. 516 Item 15 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 Packet Pg. 517 Item 15 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. Packet Pg. 518 Item 15 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 Packet Pg. 519 Item 15 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. Packet Pg. 520 Item 15 Last Updated: April 9, 2018 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. C-1 Packet Pg. 521 Item 15 Last Updated: April 9, 2018 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. C-2 Packet Pg. 522 Item 15 Last Updated: April 9, 2018 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 C-3 Packet Pg. 523 Item 15 Last Updated: April 9, 2018 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 C-4 Packet Pg. 524 Item 15 Last Updated: April 9, 2018 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. C-5 Packet Pg. 525 Item 15 Last Updated: April 9, 2018 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. C-6 Packet Pg. 526 Item 15 Last Updated: April 9, 2018 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. C-7 Packet Pg. 527 Item 15 Last Updated: April 9, 2018 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. C-8 Packet Pg. 528 Item 15 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 D-1 Packet Pg. 529 Item 15 ATTACHMENT 2 Status Report on General Plan Implementation Programs November 2018 Packet Pg. 530 Item 15 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 Packet Pg. 531 Item 15 INTRODUCTION - 1 - 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% Packet Pg. 532 Item 15 INTRODUCTION - 2 - 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 Packet Pg. 533 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 3 - 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: Packet Pg. 534 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 4 - 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: Packet Pg. 535 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 5 - 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 Packet Pg. 536 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 6 - 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 Packet Pg. 537 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 7 - 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 Packet Pg. 538 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 8 - 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 O L CD Packet Pg. 539 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 9 - 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 O M CD Packet Pg. 540 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 10 - 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 M CD/PD Packet Pg. 541 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 11 - 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. O 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 Packet Pg. 542 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 12 - 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 L 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 C H CD Packet Pg. 543 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 13 - 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 M Packet Pg. 544 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 14 - 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 Packet Pg. 545 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 15 - 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. O M PW 3 Transit Service 3.2.1. The City shall continue to implement the Short Range Transit Plan (5-year time frame) and O H PW Packet Pg. 546 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 16 - 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 Packet Pg. 547 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 17 - 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 Packet Pg. 548 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 18 - 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 Packet Pg. 549 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 19 - 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 Packet Pg. 550 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 20 - 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 Packet Pg. 551 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 21 - 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 Packet Pg. 552 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 22 - 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 Packet Pg. 553 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 23 - 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 Packet Pg. 554 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 24 - 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 Packet Pg. 555 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 25 - (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 Packet Pg. 556 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 26 - 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 Packet Pg. 557 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 27 - 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 - 29 - 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 Item 15 GENERAL PLAN PROGRAM IMPLEMENTATION STATUS - 30 - 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 24 Packet Pg. 619 Item 15 Page intentionally left 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