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HomeMy WebLinkAbout05-04-2021 Agenda Packet Tuesday, May 4, 2021 San Luis Obispo Page 1 Based on the threat of COVID-19 as reflected in the Proclamations of Emergency issued by both the Governor of the State of California, the San Luis Obispo County Emergency Services Director and the City Council of the City of San Luis Obispo as well as the Governor’s Executive Order N-29-20 issued on March 17, 2020, relating to the convening of public meetings in response to the COVID-19 pandemic, the City of San Luis Obispo will be holding all public meetings via teleconference. There will be no physical location for the Public to view the meeting. Below are instructions on how to view the meeting remotely and how to leave public comment. Additionally, members of the City Council are allowed to attend the meeting via teleconference and to participate in the meeting to the same extent as if they were present. Using the most rapid means of communication available at this time, members of the public are encouraged to participate in Council meetings in the following ways: 1. Remote Viewing - Members of the public who wish to watch the meeting can view: • View the Webinar (recommended for the best viewing quality): ➢ URL: https://slocity-org.zoom.us/j/95980530453?pwd=dTVHSmJTSW9EUU91V3dxQkV2bU9KQT09 ➢ Telephone Attendee: +1 (669) 900-6833 ➢ Webinar ID: 959 8053 0453; Passcode:816458 Note: The City utilizes Zoom Webinar for City Council Meetings. All attendees will enter the meeting muted. An Attendee tutorial is available on YouTube; please test your audio settings. • Televised live on Charter Cable Channel 20 • View a livestream of the meeting on the City’s YouTube channel: http://youtube.slo.city 2. Public Comment - The City Council will still be accepting public comment. Public comment can be submitted in the following ways: • Mail or Email Public Comment ➢ Received by 3:00 PM on the day of meeting - Can be submitted via email to emailcouncil@slocity.org or U.S. Mail to City Clerk at 990 Palm St. San Luis Obispo, CA 93401. All emails will be archived/distributed to councilmembers, however, submissions after 3:00 p.m. on the day of the meeting may not be archived/distributed until the following day. Emails will not be read aloud during the meeting. • Verbal Public Comment ➢ In Advance of the Meeting - Call (805) 781-7164; state and spell your name, the agenda item number you are calling about and leave your comment. The verbal comments must be limited to 3 minutes. All voicemails will be forwarded to the Council Members and saved as Agenda Correspondence. Voicemails will not be played during the meeting. ➢ During the meeting – Join the webinar (instructions above). Once public comment for the item you would like to speak on is called, please raise your virtual hand, your name will be called, and your microphone will be unmuted. If you have questions, contact the office of the City Clerk at cityclerk@slocity.org or (805) 781-7100. San Luis Obispo City Council Agenda May 4, 2021 Page 2 6:00 PM REGULAR MEETING TELECONFERENCE Broadcast Via Webinar CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Jan Marx, Andy Pease, Vice Mayor Erica A Stewart, and Mayor Heidi Harmon PLEDGE OF ALLEGIANCE: Council Member Andy Pease PRESENTATIONS 1. CITY MANAGER REPORT (JOHNSON – 10 MINUTES) Receive a brief report from City Manager Derek Johnson. 2. PRESENTATION ON THE "BIKE THERE!" EVENT ON MAY 20, 2021 (WILLIAMSON – 5 MINUTES) Receive a presentation from Peter Williamson on the “Bike There!” event on Thursday, May 20, 2021. 3. FAIR TRADE MONTH PROCLAMATION (HARMON – 3 MINUTES) Mayor Harmon will proclaim the month of May as “Fair Trade Month.” 4. PUBLIC WORKS AND UTILITIES WEEK PROCLAMATION (HARMON – 3 MINUTES) Mayor Harmon will proclaim the week of May 16-22, 2021 as “Public Works & Utilities Week.” 5. RECOGNITION EVENT: MAYOR'S AWARD FOR COMMUNITY SERVICE (HARMON – 3 MINUTES) Mayor Harmon will present students from Laguna Middle School with an award for community service. 6. INTRODUCTION OF KELSEY NOCKET, HOMELESS RESPONSE MANAGER (CODRON – 5 MINUTES) Community Development Manager Michael Codron will introduce Kelsey Nocket, Homeless Response Manager. San Luis Obispo City Council Agenda May 4, 2021 Page 3 PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (Not to exceed 15 minutes total) The Council welcomes your input. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items. CONSENT AGENDA Matters appearing on the Consent Calendar are expected to be non-controversial and will be acted upon at one time. A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the Consent Agenda within the three- minute time limit. 7.WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation: Waive reading of all resolutions and ordinances as appropriate. 8.MINUTES REVIEW - APRIL 13, 2021 AND APRIL 20, 2021 COUNCIL MINUTES (PURRINGTON) Recommendation: Approve the minutes of the City Council meetings held on April 13, 2021 and April 20, 2021. 9.AUTHORIZE AMENDMENT NUMBER 4 TO THE TRANSIT OPERATIONS & MAINTENANCE CONTRACT WITH FIRST TRANSIT INC. (HORN / ANGUIANO) Recommendation: Authorize the Mayor to execute Amendment Number Four to the Transit Operations & Maintenance Agreement with First Transit Inc. to extend the term until June 30, 2022 at the agreed upon and negotiated rate to not exceed $2,883,946. 10. AUTHORIZE A CONTRACT WITH HDL COMPANIES FOR CANNABIS PROGRAM SERVICES (HERMANN / BAILEY / TONIKIAN) Recommendation: Authorize the City Manager, or their designee, to execute a contract with HdL Companies to provide support services for the operations of the City’s Cannabis Business Program. San Luis Obispo City Council Agenda May 4, 2021 Page 4 11. AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS FOR A CONSULTANT TO SERVE AS THE CITY’S BELOW MARKET RATE HOUSING PROGRAM ADMINISTRATOR (CODRON / VERESCHAGIN) Recommendation: 1.Authorize the issuance of a Request for Proposals (RFP) for a Below Market Rate (BMR) Program Administrator; and 2.Authorize the City Manager to enter into a consultant services agreement if proposals are received within the available budget of $117,000 annually for the project. 12. AUTHORIZATION TO ADVERTISE 2021 DOWNTOWN PAVEMENT IMPROVEMENTS PROJECT, SPECIFICATION NO. 1000167 (HORN / RODRIGUEZ) Recommendation: 1.Approve the project plans and specifications for the 2021 Downtown Pavement Improvements Project, Specification No. 1000167; and 2.Authorize staff to advertise for bids; and 3.Authorize the City Manager to award the construction contract including the Base Bid and any Additive Alternates if the lowest responsible bid is within the Publicly Disclosed Funding Amount of $3,400,000 and the funding amount is consistent with the adopted 2021-22 budget appropriation for this project; and 4.Authorize the City Engineer to approve Contract Change Orders up to available project budget of $4,233,095 13. AUTHORIZATION TO ADVERTISE SINSHEIMER IRRIGATION AND DRAINAGE, SPECIFICATION NO. 91658 (HORN / NGUYEN) Recommendation: 1.Authorize staff to advertise for bids and approve the project plans and special provisions for the Sinsheimer Irrigation and Drainage, Specification Number 91658; and 2.Authorize the City Manager to award the construction contract for the bid total if the lowest responsible bid is within the Engineer’s Estimate of $500,000 and the funding amount is consistent with the adopted 2021-23 budget appropriation for this project. 14. AUTHORIZATION TO RECLASSIFY SIX SUPPLEMENTAL YOUTH SERVICES SITE SPECIALISTS TO SIX FULL-TIME EQUIVALENTS (AVAKIAN / BERGAM) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the reclassification of six supplemental Youth Services Site Specialists to six full-time equivalents.” San Luis Obispo City Council Agenda May 4, 2021 Page 5 15. FISCAL YEAR 2021-22 CENTRAL SERVICE COST ALLOCATION PLAN, COST OF SERVICES FEE CALCULATION, AND LABOR RATES (ELKE) Recommendation: Approve the 2021-22 Central Service Cost Allocation Plan including the Cost of Services Allocation and Labor Rates. 16. SECOND READING AND ADOPTION OF ORDINANCE 1695 (2021 SERIES) ADDING CHAPTER 8.10 (SHOPPING CARTS, AND ORDINANCE 1696 (2021 SERIES) AMENDING CHAPTER 12.04 (ENCROACHMENTS AND EXCAVATIONS) AND CHAPTER 12.20 (PARK REGULATIONS) (STANWYCK / AVAKIAN / HORN) Recommendation: 1.Adopt Ordinance 1695 (2021 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 8, Health and Safety, of the Municipal Code to add Chapter 8.10 pertaining to the unauthorized removal of shopping carts from retail establishments and to facilitate retrieval of abandoned shopping carts.” 2.Adopt Ordinance 1696 (2021 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 12.04 and Chapter 12.20 of the San Luis Obispo Municipal Code to clarify expressly that tents and similar structures are prohibited encroachments in public parks.” 17. SECOND READING OF ORDINANCE NO. 1697 (2021 SERIES) APPROVING THE LEVY OF THE SPECIAL TAX FOR THE SAN LUIS RANCH COMMUNITY FACILITIES DISTRICT (ELKE / E. CANO) Recommendation: Adopt Ordinance No. 1697 (2021 Series) entitled, “An Uncodified Ordinance of The City of San Luis Obispo, California, levying a Special Tax for the fiscal year 2021-2022 and following fiscal years solely within and relating to the City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch).” 18. POLICE DEPARTMENT 2019/2020 CRIME COMPARISON AND UPDATE (AMOROSO) Recommendation: Receive and file the 2020 Police Department Crime Report. San Luis Obispo City Council Agenda May 4, 2021 Page 6 STUDY SESSION ITEMS 19. STUDY SESSION ON THE PUBLIC DRAFT PARKS + RECREATION BLUEPRINT FOR THE FUTURE: 2021-2041 (PARKS AND RECREATION PLAN AND GENERAL PLAN ELEMENT UPDATE) (AVAKIAN / SCOTT – 90 MINUTES) Recommendation: 1.Receive a presentation on the Public Draft Parks + Recreation Blueprint for the Future: 2021-2041 (Parks and Recreation Plan and General Plan Element Update); and 2.Provide comments and direction to staff to guide the Final Draft Parks + Recreation Blueprint for the Future: 2021-2041 (Parks and Recreation Plan and General Plan Element Update). LIAISON REPORTS AND COMMUNICATIO NS (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. I n addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURNMENT The next Regular City Council Meeting is scheduled for Tuesday, May 18, 2021 at 6:00 p.m. via teleconference. 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) 781-7410. 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. 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546-8208 . FAX (805) 546-8641 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: in the year 2021. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San Luis Obispo, California, this day 010 Of 2021. Patricia Horton, New Times Legals Proof of Publication of NOTICE OF ADOPTED ORDINANCE NOTICE M HEREBY GIVEN Matthe CM Council of Me City of San Luis Obispo, Cal'domia, et be Regular Meeting of May 01021, adopted the ordinance listed below upon a motion by Council Member Christianson, second by Cauncil Member Passe, and oa the fidlovnng .It Fall vote: AYES: Council Member Christianson, Pease, Vice Mayor Stewart and Mayor Harman NOES' None ABSENT Council Member Marx ORDINANCE NO.169i POn SERIES AN UNCODIFIED ORDINANCE OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, LEVYING A SPECIAL TAX FOR ME FISCAL YEAR W-20rt AND FOLLOWING FISCAL YEARS YONIN AND REUTING TO ME CITY OF LUIS SOLELY ar OB SPO COMMUNm FACILNIES DISTRICT NO. 201�9-1N Ulf WISRANCHI WHEREAS, Me CFO Council of San Wis Obispo (Me Council conducted proceedings under and pursuamm the terms and provisions at the Mello -Noes Community Facilities Act of 199L as amended (Chapter 25, Part 1, Division; Tate 5 of the Government Code of Me State of Ca6lomia), and all laws amendatory Mema(or supplemerdel ,harem to firm its Command, Facilities DisMcl No. 2019-1 San Wis Ranch and au,horided a special Is. to finance certain public facilities; and WHEREAS, Me Council also auMomed the issuance of debt finance the heelless , and established the appropriations limit for the Community FadFNes District all as net forth in Reading. No TOM (MIS Send) and Resolution No. ID9991R119 Senors) adopted an April; 2a19 and WHEREAS. the Council adopted Ordinance No. 1fi61(ID19 Selves) on April IF, 2019. to approve Me levy of a Spacial Tax In connection with San Luis Ranch Communities Facilities D'uinct and its approved Ram and Method of Apportionment and WREREM, on March 16, M. the Cauncil adopted nift.naWben No. IIM C,,I series) (the-lbigiatian of Coastal eraton') in which it determined m consider u pd adng the Rate and Ad ethod of Apportionment duets substantial changes in the development and WHEREAS. on ApnIM,M21 the City Council adopted a Resolution Calling a Spacial Mailed -Ballet Election, related to change proceedings Within the San Wis Reach Community Facilities District and WHEREAS, to landovermowithinNe San Luis Ranch Community FacilNes District have completed the ballots and remm the results OF the CM CIO& with at least tra ims approving the amendment and WHEREAS, in connection with the ballot results, the City Council has therefore adopted a Resolution of Change on April M,, Mr related tote San win Ranch Community FacirNes Oisbict Rate and Method al App romamentand WHEREAS, the action does net constinde a -Project" under Calilomia Environmental (badly Act Guidelines Sec. 153/6 ant therefore they are not applicable. THEREFORE IT BE OMAINFO by the City Cauncil of Me City a San War; Obispo does as follows: SECTION 1. Pursuant in Government Cade lesoludonNo.1�(M9Sries),adoptebyheCitCthzit:ouncin of Me Cityof San Wis Obapo (to on April; 2O191the Resalulionof Formation,Resolution No. 11233121NI5eriesl, adopted ,tw CMCoun6lan Mamh16,211211Me'ResolutiOa WConsidmafion'1 and Resolution NO 11M (2Gn Series) adapted by Me City Council m April M, MI (Ma Resolution of Change and, collecUvery wi,h he Resolution of Formation and Me Reslluton of Consideration, Me Resolutions) and m accordance w'M to Amended and Reed Its and Method atAppor marmal at Spacial Tax IMm'RMA') Howarth n ExhibkAmthe Resolulionof Conside bftrel.bn MteCityof San Lis Obispo Community facilNes Dimnm No. 2019-1 ISM Wis Ranch) the 'Community Facilities Oi viol, a special tax u hereby levied on he Community Facilities floor for the Mlw2 71 fiscal year and for If subsequent fiscal was in Me amount of the maximum special tax ethorrsed under to Reaolawas and the RMA provided that this amount may be adjusted annually, subject in Me maximum audwrieed gmamlmx under the Resolutions and the RM0. SECTION I The Rnance Ma e, of the City of San W's Obispo a designee thereat (the'CRD Adrrvnlstramr') or such Other officer n staff member succeeding to the dates of Me CFO Adrffmwmor Mth respect m the Community FacilNes District with the aid at the appropriate officers and agents of Me City and evident harbor a bor action of fie City Council, is authored and directed (a) to determine each year the appropriate amount of the special tax (pursuamm and as provided a to Resolutions and the 111(6) in prepare Me annual special Max roll in accordance With to RualudonsaM the RMA and (elm proNde all necessary and appropriate information to Me County of San Wis Obispo (the'Coumy') Tax C011ecmr in proper farm, and in proper time, necessary to effect to correct and may billing and collection of the special ex On Me secured property FOR of the County, provided, that as provided in Section 53940 of the Caltlomia Government Code, the Resolutions and Me RMA, the City Council has reserved Me right m . a nmmn enllemirm and erdorcoa Me special tax, including direct billing, supplemerRal paling, and, omen teWduley available, judicial foreclosure Of the special ex lien. SECTION a The appropriate officers and agents of the City are author¢edm make adjustments m to Spurred Tax roll prior to the final posting of each Special Tax m Me County tax roll each fiscal year, as may be necessarym achieve a correct match of each Special Tax levy with Me ass .s eO parcel numbers finally utif red by the County in sending DO properyex bills. SECTION q. The City agrees Mat in Me event enter Special Tax it collected on the secured tax roll of the County, the County may add Ns reasonable and agreed charges For collaring the related Special Tax from the amounts co6ected, prior W remitting Me related Special Tax mgections m to City. SECTION S Taxpayers who have requested changes or corrections afthe Special Tax pursuamm Section 9 othe RMA and who are not satisfied vinh the decision of the CFO Adminisvator (whether the CFO Administrator disagrees wM the expayer or concludes Mat the City is net audrariaed OF consider Me change requested), may appeal In the City Council. The appeal we be in venting and folly explain the grounds of appeal and must be based solely on the correction of mistakes in the levy based upon the sees of the property, and at Other appeals will be allowed. The CFO Adminrstremr shall achedult Me appeal for consideration within a reasonable time at a City Counci meeting. SECTION B If, for any reason, any potion of this ordinanc( D found to be invalid, or if the spatial tors is band inapplicable OF am particular parcel by a court of competent infleacbon, the balance a this ordinance, and the application of Me special tax to the remenim parcels shall rim be affected. SECTION i. This ordinance shall take effect and be in Farm immediately as a Fes measure; and before the expiration otmenty IN dew got Gs passage the same shell be published in summary, withthr names of the members voting to, and against the some, at lean crier to a newspaper of general circulation published and circulated in thr Community FaciFNes District SECTION R Ordinance No. III IM19 Series) adopted by Mi City Council on April 16, 2019, is hereby superseded to the eaem h t inconsistemwMthis ordinance. Teresa Purnngmn City Clerk City of San Wis Obispo May 20, M21 hlnm & V—". NTMG ALmm/NThlti OFa/BUSMFSS/WNm Nnwn/Proa(o(%,b 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546-8208 • FAX (805) 546-8641 PROOF OF PUBLICATION (_015.5 C.C.P.) STATE OF CALIFORNIA, Co -.inn of S::n Luis Obispo. 1. in ,i �irisn of the [hired Scares and a resident .+r tha county aforesaid: I .un over the awe of +u,-hmen years, and not a part), interested in the +ovc entitle: matter. I am the principal clerk -' die prints: of ncc ''ail, Times. a newspaper .. •zcneral circulation, printed and published r_.1 }. in die City- of San Lnis Obispo, County ,J San Luis Obispo, and which has been ad:iudur.f ,t ElCr'papci of gcocral circulation by a � ;ill 'S Pei iur (06r1 Of ehr G+trrn- rf San Leis Scrcc M (-alifel:nia, under rfa +lace of Fcbruan S. 1993, C.:se number CV7L789: rhar :;od.e of which rile annexed is a ptintud copy pern ripe nor snmllcr Than nonpareils, has been pubji56ed in each regular and entire issue of said icv paper and not in any supplement rhereof on dm lol.ast ing dares, co -wit: --A LfiLm__� dic year 2021.. I .rrrifY (or declare) under the the pen tlry of i., .j�x) d1.11: the forogoirs is roue ani COMM + ( a t + , tells day 2021. rrr. ' Proof of Publication of 0 SAN LUIS OBISPO CITY COUNCIL NOTICE OF PUBLIC HEARING The San Luis Obispo City Council invites all interested Persons to participate in a public meeting on Tuesday, MAY 4, 2021, m 690 p.m. While the Council encourages .public participation, growing concern about the COVID-19 pandemic has required that public meetings be held via teleconference. Meetings can be viewed on Government Access Channel 20 or streamed live from the Citys YouTube Channel at lef 0hroutubesloxity. Public comment, prior to the start of the meeting, may be submitted in writing via U.S. Mail delivered to the City Clerk's office at 990 Palm Street, San Luis Obispo, CA 90401 or by email to emailcouncif slocity.org. Public Bearing Rem: • The City Council will hold a Study Session on the Public Draft Parks a Recreation Blueprint for the Future: 2021 - 2041 Parks & Recreation Plan and General Plan Element Update (GENP-1942-201a & EID-0150-2021). For more imufluatrAn, contact Showed Scott Senior Planner, for the CiVs Community Development Department at WS)781-7176orby email, sscott®sloc@g erg. The City Council may also discuss other hearings or business items before or after the hems listed above. If you challenge the proposed project in court, you may he limbed to raising only those issues you or someone else raised at the public hearing described in this noble, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Reports forthis meeting will be available for reviewonline at www.slocby.in g no later Nan 72 hours prior to the meeting. Please call the City Clerics ice of 1805) 7814100for more information. The City Council meeting will be televised live on Charter Cable Channel 20 and live streaming on the Cilys YouTube channel https.1/yombe.slo.city. +Teresa Purrington City Clerk City of San Luis Obispo April 22, 2021 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546-8208 . FAX (805) 546-8641 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, I am a citizen of the United States and a resident of the county aforesaid, I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: in the year 2021. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San Luis Obi po, C hfornia, this day aot —of �yJ � 2021. Patricia Horton, New Times Legals Proof of Publication of a ORDINANCE NO. 1695 (2021 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 8, HEALTH AND SAFETY, OF THE MUNICIPAL CODE TO ADO CHAPTER 8.10 PERTAINING TO THE UNAUIHORi REMOVAL OF SHOPPING CARTS FROM RETAIL ESTABUSHMENTS TWO TO FACILITATE RETRIEVAL OFABANOONED SHOPPING CARTS NOTICE IS HEREBY GMBR thanhe City Council of the City of Son Luis Obispo, California, at its Special Meeting of April 13,221, introduced the above tided ordinance upon a motion by Council Member Pease, second by Council Member Chrisianson, and on the following call call vote: AYES: Council Member Christianson, Man; Pease, Vice Mayor Stewart and Mayor Harmon NOES: None Ordinance No. U8512021 Series: This ordinance adds Chapter 8.10 to the Ckys Municipal Code to facilitate the removal of abandoned shopping carts in the City of San Luis Obispo and defines "abandoned or mathandled shopping cart" as a can that is "left unattended, discarded or abandoned upon any public or private properly other than the premises from which the shopping cart was removed, regardless of whether such shopping can was removed from the promises with the authorization or consent of the carts ownet" The ordinance placesthe burden of retrieval on the shopping canownerlay any business to allow or permrtthe removal of a shopping can from the owners premises. The ordinance establishes requirements for can containment and retrieval by cart owners, procedures for impoundment of abandoned can by the Cily, and recovery from the cartmwer of fines and costs incurred by the City. A full and complete copy of the Ordinance will be available for inspection as part of the published agenda packet for the May 4, 2021 Council Meeting, or you may call (805) 781-7100 for more bdormadon. NOTICE IS HEREBY GIVEN that the City Council of the City of San Luis Obispo will consider supping the Ordinance in its; Regular Meeting of May A 2021 at SAO pm. While the Council encourages public participation, growing concern about the COND-19 pandemic has required that public meetings be held via teleconference. Meethrgs can be viewed on Govemmit Access Chmmet 20 or streamed live from the Gigs YouTube channel at hupYyymmrbeslocdy. Public comment, prior to the start of the marring, may he saturated in wrifing to the Cdy Clerk's Office, 990 Palm Street San Luis Obispo, CA 93401 or by email W emailcouncilftocky.org. Teresa Farrington, City Clark Apri129,2021 M::,:n d Fe—WI.N.c AAn:'MN GOan/BUSINa$$;Guhl:c NmicNP'xf of Ppb 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546.8208 . FAX (805) 546-8641 PROOF OF PUBLICATION (2015,5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: ail in the year 2021. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San Luis Obispo, C forma, this day of 1 .2021. Patricia Horton, New Times Legals Proof of Publication of ORDINANCE NO. 1696(2121 SERIES) AN ORDINANCE OF THE COFY COUNCIL OF THE CITY OF SAN LUIS OBISPO. CALIFORNIA, AMENDING CHAPTER 1209 AND CHAPTER 1221 OF THE SAN LUIS OBISPO MUNICIPAL CODE TO CLARIFY DMESSLY THAT TENTS AND SIMILAR STRUCTURES ARE PROHIBITED ENCROACHMENTS IN PUBUCPARKS NONCE IS HEREBY GREEN thatthe CayCouncil ofthe CM of San Luis Obispo, Califomia, at its Special Meeting of April 13, 2021, introduced the above titled ordinance upon a motion by Council Member Christianson, second by Council Member Morn, and on the following rail call vote: AYES Council Member Christianson, Ni Vice Mayor Stewart, and Mayor Hannon NOES: Council Member Pease Ordinance No. 1696f2021 Sene uThisardinance amends Chapter 1204 and 1220 of the Ctys Municipal Code to clarify expressly that ten6.and similar structure are prohibited encroachments in public parks The purpose of the ordinance is to support the lawful use and access to city parks by all community members consistent with the intended uses and aesthetic qualities of City parks. The ordinance includes a specific definition for tents, which includes any enclosed temporary physical structure that obstructs activities within the structure from public view, excluding canopies and covers that are open on all sides. The ordinance also provides thin -Tent" shall not include blanker, towels, mats, portable lawn chairs, unenclosed shade structures not affixed to public property, or similar items formmporery use in conjunction with otherwise lawful park use. Tents erected by express permission of the Parks and Recreation Director in connection with a valid event pent are exempted. A full and complete copy of the Ordinance will be available for inspection as part of the published agenda packet for the May 4, 2121 Council Meeting, or you may call (805) 781-7100 for more irdurmation. NOTICE IS HEREBY GNEN that the City Council of the City of San Luis Obispo will consider adopting the Ordinance at it Regular Meeting of May k 2121 a 6d10 pm While the Council encourages public participation, growing concern about the COIAD-19 pandemic has required that public meetings be held via teleconference. Moabgs can be viewed on GoveremrM Aaess Channel 21 or streamed Irve from Cb CiWs Youllube channel Y hlgr//Vieftb docile. Public comment, prior m the start of the meeting, may be submitted in writing to the City Clerk's Office, 99D Palm Street, San Luis Obispo, CA.93401 or by email to emailcouncil®s1ocM.arg. Teresa Purnington, City Clerk elm &Pm 1/.NTNGN m/MNG Off-AUSMESSINIA,, Nrc n/P.mf,f tub 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546-8208 . FAX (805) 546-8641 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, ro-wit: in the year 2021. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San Luis Obispo, C ifornia, this day 2011^ of .2021. Patricia Horton, New Times Legals Proof of Publication of ORDINANCE NO. 169712021 SERIES) AN UNCODIRED ORDINANCE OF THE CRY OF SAN LUIS OBISPO. CALIFORNIA LEVYING A SPECIAL TAX FOR THE FISCAL YEAR 2MI-2M22 AND FOLLOWING FISCAL YEARS SOLELY WITHIN AND RELATING TO THE CRY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO.201!F7 (SAN WIS RANCH) NOTICE IS HEREBY GIVEN that the City Council of the Cityaf San Luis Obispo, California, at as Regular Meeting of Aptil 2T, 2121, introduced the above titled ordinance upon a motion by Council Member Christianson, second by Council Member Pease, and on thefolluvaning roll relives:_ AYES: Council Member Christenson, Pease, Vice Mayor Stewart and Mayor Harmon RECUSED: Council Member Marx Ordinance No. 16D 12021 Series): This Ordinance, in connection with the amended Ras and Method of Apportionment (RMAIfor the San Luis Ranch Community Facilities District was introduced to approve the levy of the special tax an the secured pmpenytac rollafthe County at San Luis Obispo. The ordinance sea forth the special tax levy for fiscal year 2121-22 and all subsequent fiscal year: and is solely applicable within the boundaries of the San Luis Ranch Community Facilities District A full and complete copy of the Ordinance will be available for inspection as part of the published agenda packet for the May 4, 2021 Council Meeting, or you may call 05) 781-710D for more information. NOTICE IS HERBY GIVEN that the City Council of the Cry of San Luis Obispo will consider adoptrng the Ordinance a< his Regular Meeting of May 4,210 at &DO pm While the Council encourages public participation, growing concern about the COVID-19 pandemic has required that public meetings be held via teleconference. Meetings can be viewed on Govomroa Access Cleared! 20 or mood live from the Ciy+s YouTubs camel at hapJ7yoWrbesbcity. Public comment prior m the stert of the meeting, may be submitted in writing to the City ClerVs Office, 990 Palm Street San Luis Obispo, CA 93401 or by email to emoicouncil®slocity.org. Teresa Puningsn, City Clerk Avil 29,2021 M,,&N—W-NTN0 Arm MIIV OFvnaUSmNESS/rVN, N—v0rFrcf d Vnb San Luis Obispo Page 1 Tuesday, April 13, 2021 Special Meeting of the City Council CALL TO ORDER A Special Meeting of the San Luis Obispo City Council was called to order on Tuesday, April 13, 2021 at 5:33 p.m. by Mayor Harmon, with all Members present via teleconference. ROLL CALL Council Members Present: Council Members Carlyn Christianson, Jan Marx, Andy Pease, Vice Mayor Erica A. Stewart, and Mayor Heidi Harmon. Council Members Absent: None City Staff Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PLEDGE OF ALLEGIANCE Mayor Harmon led the Pledge of Allegiance. PRESENTATIONS 1. ADVISORY BODY RECOGNITION The Mayor and City Council recognized the Advisory Body members for their service. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Tim Jouet ---End of Public Comment--- Item 8 Packet Page 1 San Luis Obispo City Council Minutes of April 13, 2021 Page 2 PUBLIC HEARING ITEMS AND BUSINESS ITEMS 2. INTRODUCE AN ORDINANCE AMENDING THE SAN LUIS OBISPO MUNICIPAL CODE TO ADD CHAPTER 8.10 (SHOPPING CARTS), AND AN ORDINANCE AMENDING CHAPTER 12.04 (ENCROACHMENTS AND EXCAVATIONS) AND CHAPTER 12.20 (PARK REGULATIONS) Assistant City Manager Shelly Stanwyck, Parks and Recreation Director Greg Avakian and Public Works Director Matt Horn provided an in-depth staff report and responded to Council questions. Public Comments: Amman Asfaw SBSLO Alliance Thomas Arndt Kevin Foote Marshall James Eva Ulz Frank Kopcinski Donna Hare Price Lisa Jouet Michelle M. ---End of Public Comment--- RECESS Council recessed at 8:15 p.m. and reconvened at 8:27 p.m., with all Council Members present. ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to introduce Ordinance No. 1695 (2021 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 8, Health and Safety, of the Municipal Code to add Chapter 8.10 pertaining to the unauthorized removal of shopping carts from retail establishments and to facilitate retrieval of abandoned shopping carts;” Revise Section 8.10.040 (Packet Page 15) as follows: A. “Abandoned or unattended shopping cart” means a shopping cart which is either: 1. Removed from the premises of a retail establishment by any person without the written authorization or consent of the cart’s owner; or 2. Left unattended, discarded, or abandoned upon any public or private property other than the premises from which the shopping cart was removed, regardless of whether such shopping cart was removed from the premises with the authorization or consent of the cart’s owner. For purposes of this chapter, a shopping cart located on any public or private property other than the premises of the retail establishment from which such shopping cart was removed is presumed abandoned, even if in the possession of any person, unless the person possessing the shopping cart is: Item 8 Packet Page 2 San Luis Obispo City Council Minutes of April 13, 2021 Page 3 a. The owner, or an employee or authorized agent of the owner, entitled to possession of such shopping cart; b. An officer, employee or agent of a cart retrieval service hired by the owner to retrieve such carts; c. Enforcing this chapter upon the Director’s authority; or d. Has written permission to possess such shopping cart from the owner entitled to possession of such shopping cart. Revise Section 8.10.060 Prohibitions (Packet Page 17) as follows: A. It is unlawful for any business to allow or permit the removal of a shopping cart from the premises of the cart’s owner. A. t is unlawful to possess a shopping cart off the premises of a retail establishment without the prior written authorization or consent of the shopping cart’s owner, unless the person in possession of the shopping cart is in the process of immediately returning the shopping cart to the premises of the retail establishment. B. It is unlawful for any person to leave, or cause to be left, a shopping cart that was in his or her possession or custody, on any public area or upon any public or pr ivate property such that it becomes an abandoned shopping cart. C. It is unlawful to possess or use a shopping cart in City parks or open spaces and in any creek, stream bed, or riparian area located within the City. ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER MARX, CARRIED 4-1 (COUNCILMEMBER PEASE VOTING NO) to introduce Ordinance No. 1696 (2021 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 12.04 and Chapter 12.20 of the San Luis Obispo Municipal Code to clarify expressly that tents and similar structures are prohibited encroachments in public parks” consistent with a previously issued clarifying Memorandum. ACTION: By consensus, the Council directed staff to continue to monitor the use of child play areas in parks, check in with the Parks and Recreation Commission and report back to the Council if there is further recommendations or direction needed from the Council. STUDY SESSION ITEMS 3. 2020 URBAN WATER MANAGEMENT PLAN AND WATER SHORTAGE CONTINGENCY PLAN Utilities Director Aaron Floyd and Deputy Utilities Director of Water Mychal Boerman provided an in-depth staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- Item 8 Packet Page 3 San Luis Obispo City Council Minutes of April 13, 2021 Page 4 By consensus, Council provided the following comments to staff: • Prohibition on wheeling water at 5 years or less. • As part of any wheeling agreement there should be a statement at what tier it gets cut off. • Offers of audits could be in the Watch category. • Keep up with the irrigation situation both in residential and around the school. • Water bill inserts may not be the best way to outreach to customer because of auto bill pay. • Make sure to include Social Media in outreach. • Look for incentive ideas (contests) to make saving water more fun. COUNCIL COMMUNICATIONS AND LIAISON REPORTS None ADJOURNMENT The meeting was adjourned at 9:48 p.m. The next Regular City Council Meeting is scheduled for Tuesday, April 20, 2021 at 5:30 p.m., via teleconference. APPROVED BY COUNCIL: XX/XX/2021 Item 8 Packet Page 4 San Luis Obispo Page 1 Tuesday, April 20, 2021 Regular Meeting of the City Council CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, April 20, 2021 at 5:30 p.m. by Mayor Harmon, with all Members present via teleconference. ROLL CALL Council Members Present: Council Members Carlyn Christianson, Jan Marx, Andy Pease, Vice Mayor Erica A. Stewart, and Mayor Heidi Harmon. Council Members Absent: None City Staff Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. PLEDGE OF ALLEGIANCE Renoda Campbell led the Pledge of Allegiance. PUBLIC HEARING ITEMS AND BUSINESS ITEMS 1. RATE AND METHOD OF APPORTIONMENT AMENDMENT APPROVAL FOR CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN LUIS RANCH) Council Member Marx indicated she would be recusing from the item as she is considering a real property acquisition in the area. Finance Director Brigitte Elke and Financial Analyst Esteban Cano provided an in-depth staff report and responded to Council questions. Public Comments None ---End of Public Comment--- Item 8 Packet Page 5 San Luis Obispo City Council Minutes of April 20, 2021 Page 2 ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER PEASE, CARRIED 4-0-1 (WITH COUNCIL MEMBER MARX RECUSED) To adopt a Resolution No. 11237 (2021 Series), “A Resolution of the City Council of the City of San Luis Obispo, California, calling a Special Mailed-Ballot Election related to change proceedings within City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch).” ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER PEASE, CARRIED 4-0-1 (WITH COUNCIL MEMBER MARX RECUSED) To adopt Resolution No. 11238 (2021 Series) entitled, “A Resolution of Change of the City Council of the City of San Luis Obispo, California, relating to City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch.)” ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER PEASE, CARRIED 4-0-1 (WITH COUNCIL MEMBER MARX RECUSED) To introduce Ordinance No. 1697 (2021 Series) entitled, “An Uncodified Ordinance of the City of San Luis Obispo, California, levying a Special Tax for the Fiscal Year 2021 -2022 and following fiscal years solely within and relating to the City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch)” to Levy the Special Tax for The Fiscal Year 2021-2022 and Following Fiscal Years Solely Within the Boundaries of The San Luis Ranch CFD." 2. AUTHORIZE THE ISSUANCE OF THE SAN LUIS RANCH CFD SPECIAL TAX BONDS, IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $20,500,000, AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE, A BOND PURCHASE AGREEMENT AND A CONTINUING DISCLOSURE CERTIFICATE Council Member Marx indicated she would be recusing herself from the item as she is considering a real property acquisition in the area. Finance Director Brigitte Elke and Financial Analyst Esteban Cano provided an in-depth staff report and responded to Council questions. Public Comments None ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER PEASE, CARRIED 4-0-1 (WITH COUNCIL MEMBER MARX RECUSED) To adopt Resolution No. 11240 (2021 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the issuance of City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch) Special Tax Bonds, Series 2021, in an aggregate principal amount of not to exceed $20,500,000 authorizing the execution and delivery of an Indenture, a Bond Purchase Agreement and a Continuing Disclosure Certificate, authorizing the distribution of an official statement in connection therewith and authorizing the execution of necessary documents and certificates and related actions.” Item 8 Packet Page 6 San Luis Obispo City Council Minutes of April 20, 2021 Page 3 PRESENTATIONS 3. CITY MANAGER REPORT City Manager Derek Johnson provided a PowerPoint presentation updating Council on current projects and COVID-19 status. 4. INTRODUCTION OF NICK TEAGUE, WATER RESOURCES PROGRAM MANAGER; CHRISTINA CLAXTON, ENVIRONMENTAL PROGRAMS MANAGER; MATT ANDERSON, LABORATORY MANAGER; AND JORDAN LANE, SOLID WASTE COORDINATOR Utilities Director Aaron Floyd introduced Matt Anderson, Laboratory Manager, Christina Claxton, Environmental Programs Manager, Jordan Lane, Solid Waste Coordinator and Nick Teague, Water Resources Program Manager. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA John Ashbaugh Michelle M Andrew Gaebel Michael Guiffre ---End of Public Comment--- CONSENT AGENDA ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER MARX, CARRIED 5-0 to approve Consent Calendar Items 5 - 9. 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 REVIEW - APRIL 6, 2021 COUNCIL MINUTES CARRIED 5-0, to approve the minutes of the City Council meeting held on April 6, 2021. 7. AUTHORIZATION TO ADVERTISE LAGUNA LAKE 2021 MAINTENANCE DREDGING PROJECT, SPECIFICATION NO. 91392 CARRIED 5-0, to: 1. Approve the Project Plans and Special Provisions for the Laguna Lake 2021 Maintenance Dredging Project; and 2. Authorize staff to advertise for bids; and 3. Authorize the City Manager or designee to award the construction contract for the bid total if the lowest responsible bid is within the publicly disclosed funding amount of $650,000 and the funding amount is consistent with the adopted 2021-23 budget appropriation for this project. Item 8 Packet Page 7 San Luis Obispo City Council Minutes of April 20, 2021 Page 4 8. APPROVAL OF THE FINAL TRACT MAP FOR TRACT 3140, 1137 PEACH STREET (FMAP-0542-2020) CARRIED 5-0, to adopt Resolution No. 11241 (2021 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Final Map for Tract 3140 (1137 Peach Street, FMAP-0542-2020).” 9. AUTHORIZATION TO INCLUDE THE PROPERTY AT 79 BENTON WAY IN THE CITY’S INVENTORY OF HISTORIC RESOURCES AS A MASTER LIST RESOURCE (ELBERT EARLE CHRISTOPHER HOUSE) CARRIED 5-0, to adopt Resolution No. 11242 (2021 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adding the property located at 79 Benton Way to the Master List of Historic Resources as “The Elbert Earle Christopher House” (HIST 0675 2020).” PUBLIC HEARING ITEMS AND BUSINESS ITEMS 10. 2021-23 FINANCIAL PLAN – STRATEGIC BUDGET DIRECTION AND MAJOR CITY GOAL WORK PROGRAM REVIEW Finance Director Brigitte Elke and Principal Budget Analyst Natalie Harnett provided an in - depth staff report and responded to Council questions. Public Comments Amman Asfaw Marshall James Kelly Fisher Jim Dantona Elle Tim Jouet Rylee Terry Alejandro Bettina Swigger David Baldwin Joshua Medrano Chelsie Patterson Rita Cassaverde Brandon Montzerrat Morales ---End of Public Comment--- RECESS Council recessed at 8:35 p.m. and reconvened at 8:50 p.m., with all Council Members present. Item 8 Packet Page 8 San Luis Obispo City Council Minutes of April 20, 2021 Page 5 By Consensus, the Council provided the following direction and requested that staff come back on June 1, 2021 with the adjustments to the work plan needed to make the changes: Economic Recovery Add $50,000 in support for creating Community Workforce Agreements using the WRRF as a case study. Diversity Equity Inclusion (DEI) Crisis Intervention Training – remove from DEI work program description Increase amount for feasibility study to $40,000 for Multi-Cultural Center. The police department will implement new federal and state laws and mandates for police reform and update its strategic plan to integrate new requirements and return to Council for a discussion on further integration of the principles of 21st policing and other actions as determined by the City Council. Climate Action, Open Space, and Sustainable Transportation Look into Climate Coalition request Remove Implementation of Open Space Winter Hours of Use from Climate Action MCG, into operating with the understanding that work will continue to be directed by Natural Resources staff. By Consensus, the Council reviewed the remaining portions of the Strategic Budget Direction document (Ongoing Community Services, Local Revenue Measure, SOBC’s, CIP and Enterprise Funds) and had no changes. COUNCIL COMMUNICATIONS AND LIAISON REPORTS Vice Mayor Stewart reported on the League of California Cities Quarterly Community Services Policies meeting, and the upcoming CAPSLO meeting is holding an equity summit and interviewing for a Homeless Services Manager. Council Member Marx reported on the IWMA meeting and the status of the poly styrene ban. ADJOURNMENT The meeting was adjourned at 10:52 p.m. The next Regular City Council Meeting is scheduled for Tuesday, May 4, 2021 at 6:00 p.m., via teleconference. APPROVED BY COUNCIL: XX/XX/2021 Item 8 Packet Page 9 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 8 Packet Page 10 Department Name: Public Works Cost Center: 5201 (Transit) For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Gamaliel Anguiano, Transit Manager SUBJECT: AUTHORIZE AMENDMENT NUMBER 4 TO THE TRANSIT OPERATIONS & MAINTENANCE CONTRACT WITH FIRST TRANSIT INC. RECOMMENDATION Authorize the Mayor to execute Amendment Number Four to the Transit Operations & Maintenance Agreement with First Transit Inc. to extend the term until June 30, 2022 at the agreed upon and negotiated rate to not exceed $2,883,946; as shown in Attachment A. DISCUSSION Background The City of San Luis Obispo operates a fixed-route public transit system within City limits and the California Polytechnic State University (Cal Poly) campus. Vehicle operations and maintenance have been outsourced and provided by third-party vendors since the 1990s. Throughout this time the City has continued to use various vendors/contractors to perform these duties and often does multi-year contracts with potential one-year extensions as allowed by the Federal Transit Administration (FTA). On June 16, 2015, the City Council approved the award of the Transit Operations and Maintenance contract to First Transit Inc. who was deemed to be the “best in value” vendor of the seven considered. The recommendation for the award came at the end of a successful Request for Proposal process where multiple vendors submitted proposals for this work and a competitive process arrived at the vendor that was deemed most appropriate to conduct the services. This contract called for a base four -year contract term with the potential for an additional three extensions in one-year increments. Thus far it has been beneficial for the City to exercise the first of the three possible extensions. Recommendations for exercising an extension are based on several factors including vendor performance, market indicators, and strategic operational benefits. Per the existing contract there are several key performance indicators (KPIs) with associated liquidated damages and incentives. These KPIs are designed to gauge the performance of the vendor. The City has a high standard for the expected level of service and the vendor has satisfactorily met these standards with improvements in safety, reliability, and on-time performance. The vendor has also demonstrated to be responsive and adapted to change to improve transit services offered based upon community needs. Item 9 Packet Page 11 Another consideration for recommending an extension are market indicators such as competitive pricing that may be available if a new RFP process were undertaken. This is usually somewhat offset by the additional costs for completing the RFP process and the lost time due to this additional work. Current pricing for the SLO Transit services is in line with current industry standards and the negotiated amounts are consistent with similar contracts. The negotiated price with the vendor, in a not exceed amount is consistent with the Transit Fund’s Fiscal Year 2021-22 forecast. With projected federal funds as part of various pandemic “rescue efforts” there should be sufficient revenue to cover these costs as ridership returns to pre- pandemic levels. The extension will also have strategic operational benefits. Staff is currently in negotiations with Cal Poly University for a new transit service agreement. Additionally, the impacts of electrification of the fleet will have impacts on operations and having a better understanding of the same before issuing an RFP will be important. Previous Council or Advisory Body Action City Council has previously approved exercising other contract amendments including exercising the first of three possible extensions. • On June 16, 2015, the City entered into an Agreement with Vendor for Transit Operations & Maintenance. • On April 5, 2018, the City and Contractor entered into an Amendment to Agreement No. 1, amending the scope of services to reflect changes in Revenue Service Hours as a result of the implementation of Short-Range Transit Plan. • On January 8, 2019, the City and Vendor entered into an Amendment to Agreement No. 2, amending the scope of services to reflect the pass-thru purchase of an Automatic Vehicle Location System. • On March 3, 2020 the City exercise the first of three possible extensions Amendment to Agreement No. 3 of the 2016 Transit Operations & Maintenance contract with First Transit Inc. Policy Context The City’ adopted Financial Management Manual states that contract’s greater than $100,000 fall under the purview of City Council for approval (page 46). Public Engagement At the May 4, 2021 City Council meeting, the public will have the opportunity to provide comment as part of the item. The public will also have an opportunity to submit letters or speak during Publi c Comment for this agenda item. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15 378. Item 9 Packet Page 12 FISCAL IMPACT Budgeted: Yes Budget Year: 2021-22 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost Transit Fund $576,790 State $1,153,578 Federal $1,153,578 Fees Other: Total $2,883,946 At First Transit Inc.’s request to the City, negotiations commenced in the Fall of 2020. Negotiations have brought down the initial request from a 7% increase to 3% for FY 2021-22. The additional costs requested by First Transit are largely attributable to the increased cost for maintaining an older fleet with 50% of the vehicles past their federally approved “useful -life”, the State mandated increase to minimum wages, increased costs for drivers’ wages, and increased cost for insurance. The total contract value of $2,883,946, is in line with the projected FY 2021-22 costs and revenue projections. ALTERNATIVES Deny the extension request and direct staff to go out to bid. This not recommended as any new long-term contract will take a significant work effort at this time and may not result in any cost savings and likely cannot be completed in a time for fiscal year end. Attachments: a - First Transit Amendment to Agreement No. 4 to Extend Contract b - COUNCIL READING FILE - First Transit Operation Contract - June 2016 Item 9 Packet Page 13 AMENDMENT TO AGREEMENT NO. 4 THIS AMENDMENT TO AGREEMENT is made this _______ day of ________, 2021, by and between the CITY OF SAN LUIS OBISPO a municipal corporation and charter city, hereinafter referred to as “CITY” and FIRST TRANSIT INC., hereinafter referred to as “CONTRACTOR.” WITNESSETH: WHEREAS, on June 16, 2015, the City entered into an Agreement with Contractor for Transit Operations & Maintenance (Agreement); and, WHEREAS, on April 5, 2018, the City and Contractor entered into an Amendment to Agreement No. 1, amending the scope of services to reflect changes in Revenue Service Hours as a result of the implementation of Short-Range Transit Plan; and WHEREAS, on January 8, 2019, the City and Contractor entered into an Amendment to Agreement No. 2, amending the scope of services to reflect the pass-thru purchase of an Automatic Vehicle Location System; and WHEREAS, on March 3, 2020, the City and Contractor entered into an Amendment to Agreement No. 3, to exercise the first of three possible extensions provisioned within the original contract at a negotiated price; and WHEREAS, the Agreement’s term is set to expire on June 30, 2021 and the City desires to exercise a second one-year contract extension option as indicated in the Agreement’s Section 2.c.; and WHEREAS, the Agreement requires the City and Contractor to negotiate the price formulas for the one-year contract extension; WHEREAS, the Contractor has submitted a proposal for this purpose and said proposal is acceptable to the City. Attached hereto as attachment A is a copy of the Contractor’s Proposal. NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM OF AGREEMENT Term. Subject to the terms and conditions of this agreement, the term of this agreement shall be from July 1, 2021 through and including June 30, 2022. 2. MAXIMUM OBLIGATION City agrees to pay Contractor in consideration for its services as described herein. The maximum cost to be paid by City to Contractor shall not exceed $_$2,883,946 _ based on services in Agreement’s Exhibit A. Item 9 Packet Page 14 3. PRICE FORMULA City agrees to pay Contractor for performance of the services set forth in this agreement as follows: a. Payment of a fixed hourly rate per vehicle service hour of $_38.92_ in Year One; A vehicle service hour is defined as on vehicle providing passenger service for one hour during the service hours specified herein. A vehicle service hour shall be deemed to have commenced when a vehicle leaves CITY’s Transit Center (located at 990 Palm Street) to provide the services required herein and shall not include any out-of-service vehicle time used for vehicle operator breaks or lunches. A vehicle service hour shall terminate when a vehicle returns to CITY Transit Center prior to any cleaning, servicing or fueling of the vehicle. The hourly rate shall include vehicle operator wages, fringe benefits, indirect labor and all consumable material costs that can be tracked by vehicle service hour such as vehicle maintenance parts and supplies including oil. b. Payment of a fixed monthly rate of $_100,201.89__ in Year One; to compensate CONTRACTOR for all work to be performed under this agreement as defined in Exhibit A, except that which is included under Paragraph 5(a) and Paragraph 7 of this agreement including, but not limited to: vehicle operator non-service wages; management, controller and maintenance employee wages and said employees fringe benefits and indirect labor costs; bus washing and cleaning supplies; uniforms; report reproduction; office supplies; project telephones; all other related operational costs; and the contract management fee. c. Payment of a fixed monthly rate of $_11,888.16__ in Year One; for the cost incurred in providing all vehicle and general liability insurance required under this agreement as such insurance is defined in this agreement. This amount shall be in excess of the fixed monthly rate as defined herein. CITY reserves the right, however, to alternatively secure all or part of the specified insurance coverage 4. EXTRA SERVICES Special promotional and community services shall be considered extra services and will be provided only with the authorization of City and the mutual consent of the Contractor. Such services shall be defined as those non-permanent service hours operated outside of the services identified in Exhibit A. Extra services shall be considered a change to this agreement as defined herein and shall be in excess of the maximum price defined in Paragraph 4. The costs for extra services will be determined at a rate per vehicle service hours of $38.92 in Year Four and billed separately from the services specified in the Agreement’s Exhibit A. 5. All other terms and conditions of the Agreement, Amendment No. 1, Amendment No. 2 and Amendment No. 3 remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by and through their respective officers thereunto duly authorized on the date written below their signatures. ATTEST: CITY OF SAN LUIS OBISPO __________________________ By:_________________________ City Clerk Mayor APPROVED AS TO FORM: CONTRACTOR: First Transit Inc. Item 9 Packet Page 15 By: __________________________ J. Christine Dietrick Fadi Chakbazof City Attorney Its: Senior Vice President Item 9 Packet Page 16 Department Name: Administration Cost Center: 1001 For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Georgina Bailey, Cannabis Program Coordinator/Management Fellow Victoria Tonikian, Acting Assistant to the City Manager SUBJECT: AUTHORIZE A CONTRACT WITH HDL COMPANIES FOR CANNABIS PROGRAM SERVICES RECOMMENDATION Authorize the City Manager, or their designee, to execute a contract (Attachment A) with HdL Companies to provide support services for the operations of the City’s Cannabis Business Program. DISCUSSION Following a year of analysis of operator license fees, on January 19, 2021, the City Council approved Resolution 11213 (Attachment B), updating the commercial cannabis business operator permit fee for all types of cannabis businesses within the City. The operator permit fee adopted by City Council captures the total costs involved to ensure the City is 100% reimbursed for the staff time, consultant fees, and other expenses, which are essential to managing the Cannabis Program. Following the approval of Resolution 11213, City staff is recommending using HdL Companies (HdL) to assist with continuation of the City’s Cannabis Program. Should Council authorize this contract, HdL will continue to provide cannabis application services and provide new services related to cannabis operator permits. Background Following the passage of the City’s Cannabis Business Tax ballot measure in November 2018, the City Council approved the fee structure, application criteria and zoning regulations to allow for cannabis businesses to operate in the City on November 27, 2018. A year after the initial regulations were adopted, staff returned to the City Council on December 3, 2019 with a Cannabis Program update. At this meeting, the City Council adopted recommended changes to the original cannabis application fees, which allowed all operators to pay an initial application fee and a secondary fee once the contingent operator permit was granted, thu s lowering the initial application costs. Additionally, staff committed to come back to Council with an analysis of operator license fees after one full year of operations to collect information on actual time spent compared to the assumptions used in developing the original fees. Staff brought that analysis to City Council on January 19, 2021 in the form of a fee study and fee recommendation , which the City Council adopted. Item 10 Packet Page 17 As part of the fee study process, the City researched alternative service delivery approaches for regulatory compliance inspections, cannabis tax audits, and background check renewals for owners and employees. Through the research, staff determined that the City can provide the same level and quality of service for some aspects of the program for a reduced cost by utilizing a consultant for some components of regulatory compliance inspections, cannabis tax audits, and background check renewals for owners and employees. This approach is consistent with other cities that have utilized consultants similarly for some aspects of the cannabis program services such as Grover Beach, Goleta, Port Hueneme, etc. City staff has since concluded – through a review of consultant services needed, cost, and the Cannabis Program requirements – that HdL can provide the services desired in accordance with the City's Cannabis Program regulations and the fees adopted by City Council. HdL has over 30 years of experience providing consulting services to government agencies throughout California and other states. HdL’s Cannabis Management Program has been used by many agencies in the State to assist with application proctoring, compliance monitoring, auditing, background checks, and other consulting services. Locally, HdL has worked successfully with other agencies’ Cannabis Programs such as Grover Beach to provide compliance checks and audits. Likewise, HdL has experience working with the City’s Cannabis Program as they have assisted with two application rounds in which they proctored the application scoring and assisted with application completeness checks. Outside of the Cannabis Program, the City’s Finance Department has utilized HdL for multiple years as a sales tax consultant and has recently partnered with them for Utility User Tax services. It is therefore staff’s recommendation to enter into a contract with HdL to assist with the City’s Cannabis Program to provide Operator Permit and Application services. Scope of Services (Attachment C) Should the contract with HdL Companies be authorized, the City will utilize HdL for the following services: Operator Permit Services: • Conduct one annual cannabis tax audit of each licensed cannabis business to ensure proper reporting and remittance of cannabis taxes to the City. • Conduct four on-site compliance inspections of each licensed cannabis business annually to ensure ongoing compliance with all state and local laws in conjunction with the Police Department, Application Permit Services: • Screen all initial cannabis business applications for completeness. • Proctor the City's application review process. • Provide initial background checks and renewals for all owners, managers and employees of the City’s commercial cannabis businesses subject to review and approval of the Police Department. Additional Cannabis Program Support: • Provide technical assistance and support for process improvement and program modification. Item 10 Packet Page 18 Previous Council or Advisory Body Action On November 27, 2018, the City Council approved both application and operating license fees for the Cannabis Business Program. On December 3, 2019, the City Council approved a change to the cannabis application fees that allowed all operators to pay an initial application fee and a secondary fee once the contingent operator permit was granted, thus lowering the initial application fee. On January 19, 2021, the City Council approved a change to the operator permit renewal fee, which reduced the fee for all operators and placed all operators on the same fiscal year renewal cycle. Policy Context The recommendation to execute a contract with HdL Companies to support cannabis services is consistent with overall goals of the Cannabis Business Program and all applicable sections of the Municipal Code. The adopted cannabis operator permit renewal fees and application fees not only provide business support and compliance monitoring for cannabis businesses, but consultant support will also streamline the process administratively for both businesses and City staff. Public Engagement The current application and operator permit fee ordinances and resolutions were considered and adopted by City Council on May 15, 2018, October 16, 2018, November 27, 2018, December 3, 2019 and January 19, 2021. Since that time, staff have been in regular communication with applicants, business operators and industry representatives receiving feedback on a wide range of issues related to the implementation of the Cannabis Business Program. For this item, no public engagement was conducted as this is considered to be an administrative item. However, extensive public engagement was done prior to City Council’s adoption of the operator permit renewal fees adopted January 19, 2021, in which cannabis operator permit holders supported the recommendation to reduce the cannabis operator permit fees based o n the results of the fee study. CONCURRENCE A Steering Committee and Cannabis Team of City staff members including staff from the departments of Administration, the City Attorney’s Office, Community Development, Finance and the Police Department supports the action to execute a contract with HdL Companies to support cannabis services for cannabis operator permits and cannabis application scoring as it relates to the City’s Cannabis Program. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15 378. Item 10 Packet Page 19 FISCAL IMPACT Budgeted: Yes Budget Years: 2021-2023 Funding Identified: Yes Fiscal Analysis: Funding Sources FY 2021-2022 Cost FY 2022-2023 Cost Total Project Cost General Fund State Federal Community Development $52,095 $57,345 Finance $30,000 $48,000 Other: Total $82,095 $105,345 As a part of the 2021-2023 Financial Plan which will be brought before the City Council on June 1, 2021, staff has included a request for Cannabis Consultant Services for both fiscal years. The request is for required consultant support of the Cannabis Business Program and will be funded through either operator permit or application fees. Due to the fee-for service model and contract, the total work by HdL Companies for the Cannabis Program could exceed $100,000 in any given fiscal year dependent on the number of operator permits and applications received. As is consistent with the City’s purchasing policy, this contract is being brought to the Council for review as it may exceed $100,000 in any given year. ALTERNATIVES 1. Do not move forward with the contract with HdL Companies and instead have staff complete the proposed Scope of Services. This is not advised as the cost for staff to provide the same Scope of Services would be significantly higher than HdL Companies and the overall operator permit fee adopted in Resolution 11213. For staff to provide the same Scope of Services, staff would need to readjust the fees and come back to City Council with a new fee recommendation as staff cannot provide the full scope of services within the current fee adopted by City Council January 19, 2021. 2. Do not move forward with the contract with HdL and instead select a different consultant to complete this work. This is not advised as HdL Companies provides expert services with experience working within the City of San Luis Obispo’s Cannabis Program at a rate within the fees adopted by City Council. Likewise, staff is not aware of any vendor, aside from HdL, that provides the full suite of services needed at the quality of HdL's work and cost that fits within the fees adopted by the City Council. Item 10 Packet Page 20 3. Authorize staff to move forward with modified recommendation. Given the nature of the contract, the City Council could authorize the contract with HdL Companies under the fee- for-service model but require staff to return to the City Council should contract exceed $200,000 or any amount deemed appropriate by the City Council in any given fiscal year. Attachments: a - Contract with HdL Companies for Cannabis Program Services b - Resolution No. 11213 (2021 Series) - Master Fee Schedule c - COUNCIL READING FILE - HdL Scope of Services Item 10 Packet Page 21 HdL Companies Contract Agreement with City Page 1 AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [ ] by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and Hinderliter, de Llamas and Associates, hereinafter referred to as Consultant. W I T N E S S E T H: WHEREAS, the City desires to utilize Consultant to assist the City with cannabis management services, specifically in the oversight of cannabis operator permits and with ongoing cannabis permit applications; and WHEREAS, the Consultant will provide the following services: conduct one annual cannabis tax audit of each licensed cannabis business, conduct four on-site inspections of each licensed business annually, screen all cannabis business applications to ensure they are complete, proctor the City ’s Application Review process, conduct background checks and renewals for all owners, managers and employees of the City ’s commercial cannabis businesses, and provide additional hours of technical assistance and subject matter expertise as needed; and WHEREAS, the aforementioned services of Consultant are necessary for the continued operation of the City’s Cannabis Program; and WHEREAS, the operator permit fees and application fees adopted by the City Council have captured the total costs involved to ensure the City is 100% reimbursed for the staff time, consultants fees, and other expenses; and WHEREAS, Consultant can conduct the full Scope of Services necessary to implement the City's Cannabis Program, regulations, and the fees adopted by City Council; and WHEREAS, Consultant is qualified to perform these type of services and has submitted a proposal to do so which has been accepted by City. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1.TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until the parties terminate this Agreement pursuant to mutual written agreement and acceptance or completion of said services. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 22 HdL Companies Contract Agreement with City Page 2 INCORPORATION BY REFERENCE The Consultant’s fees and scope of work are incorporated in and made a part of this Agreement attached as Exhibit A. The City’s terms and conditions are hereby incorporated in and made a part of this Agreement as Exhibit B. The City’s insurance requirements and Consultant’s proof of insurance are hereby incorporated in and made part of this Agreement attached as Exhibit C. To the extent that there are any conflicts between the Consultant’s fees and scope of work and the City’s terms and conditions, the City’s terms and conditions shall prevail, unless specifically agreed otherwise in writing signed by both parties. 2.CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay, and Consultant shall receive therefore compensation for completion of each service for the quoted price per service as set forth in Exhibit A. 4.CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and Agreements herein before mentioned to be made and performed by City, Consultant agrees with City to provide services as set forth in Exhibit A. 5.AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the Department Head or City Manager of the City. 6.COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete Agreement between the parties hereto. No oral Agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral Agreement, understanding, or representation be binding upon the parties hereto. 7.NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City Consultant Community Development Department City of San Luis Obispo 919 Palm St. San Luis Obispo, CA 93401 Hinderliter, de Llamas & Associates 120 S. State College Blvd., Ste 200 Brea, CA 92821 DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 23 HdL Companies Contract Agreement with City Page 3 8.AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that each individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. CITY OF SAN LUIS OBISPO, A Municipal Corporation By:_____________________________________ Michael Codron, Community Development Director APPROVED AS TO FORM: CONSULTANT ________________________________ City Attorney By: _____________________________________ , Gary Lott, Chief Operating Officer Hinderliter de Llamas & Associates DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 24 City of San Luis Obispo Cannabis Compliance and Audit Services March 25, 2021 SUBMITTED BY HdL Companies 120 S. State College Blvd., Ste 200 Brea, CA 92821 hdlcompanies.com CONTACT David McPherson T: 714.879.5000 E: dmcpherson@hdlcompanies.com EXHIBIT A DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 25 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 1 TABLE OF CONTENTS I. LETTER OF TRANSMITTAL ............................................................................. 2 II. PROPOSED SCOPE OF SERVICES ................................................................. 3 III. COST .................................................................................................................. 7 IV. OPTIONAL SERVICES....................................................................................... 8 V. EXPERIENCE AND RESOURCES ....................................................................9 VI. REFERENCES ................................................................................................15 DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 26 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 2 I. LETTER OF TRANSMITTAL March 25, 2021 Greg Herman Deputy City Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Re: Proposal for Cannabis Compliance and Audit Services Dear Mr. Herman, Thank you for the opportunity to submit this proposal for cannabis management services for the City of San Luis Obispo. The enclosed scope of services is designed to provide annual cannabis tax audits of each licensed cannabis business, quarterly compliance inspections, screening of cannabis business applications and proctoring meetings of the City’s review panel, along with background check renewals and additional hours of technical assistance or subject matter expertise to be used as needed at the City’s request. All services are offered at a straight per- unit cost and would be billed on a monthly basis depending on the number of each service requested and provided. HdL was incorporated in 1983 and has over 30 years of experience providing revenue enhancement and consulting services to local governments in California. HdL is a consortium of three companies established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Its audit and consulting services include sales, use and transaction taxes, property taxes, transient occupancy taxes, and a Cannabis Management Program. HdL’s systematic approach to revenue management and economic analysis is currently being utilized by over 500 agencies in six states. The firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California. Our knowledgeable team of professionals have more than 52 years’ combined experience in the establishment and implementation of cannabis regulatory programs including establishing land- use regulations, registration processes, operation regulations for cannabis facilities, staffing plans, cost recovery, structuring cannabis business taxes and conducting compliance and financial audits. We look forward to the opportunity to partner with the City of San Luis Obispo in developing a strategy which meets your program needs. If you have any questions or require additional information, please feel free to contact me by email at anickerson@hdlcompanies.com or David McPherson at dmcpherson@hdlcompanies.com or by phone at 714.879.5000. Sincerely, Andy Nickerson President, HdL Companies DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 27 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 3 II. PROPOSED SCOPE OF SERVICES In May of 2018, the San Luis Obispo City Council approved an ordinance allowing commercial cannabis businesses to operate in the City. That ordinance was followed in late 2018 by the development of a cannabis business operator permit process. The first permit application period opened in January 2019, followed by a second application period in July of 2019, and two other application periods in January 2020 and June 2020. There are currently 7 cannabis businesses who have been granted operator permits by the City. Currently 2 cannabis businesses are operating within the City and the remaining 5 cannabis business are at various stages in the permitting process. In May of 2020, the City engaged the services of HdL Companies to review the City’s existing fee structure to determine the total costs involved in the administration of the Cannabis Business Program. In addition, HdL was asked to review the application process and merit criteria to determine how the application process could be streamlined and be more efficient. As the City’s cannabis program has grown and expanded, so has the need for rigorous monitoring and oversight of the local industry to verify compliance with all state and local laws and to ensure that all applicable cannabis taxes are being properly reported and remitted to the City. To assist with these needs, the City of San Luis Obispo has requested that HdL develop a proposal to provide the following services: Conduct one annual cannabis tax audit of each licensed cannabis business to ensure proper reporting and remittance of cannabis taxes to the City. Conduct four on-site compliance inspections of each licensed cannabis business annually to ensure ongoing compliance with all state and local laws. Screen all cannabis business applications to ensure they are complete. Proctor the City's Application Review Process Provide background check renewals of all owners, managers and employees of the City’s commercial cannabis businesses. Provide additional hours of technical assistance and subject matter expertise This proposal provides a fixed unit cost for each of these services, which are described below. Objective 1: Cannabis Tax Audits HdL will conduct an annual financial audit to verify the accuracy of revenues reported to the City during the review period and will recommend a tax assessment should the audit reveal any unreported revenue. As part of the process, HdL will conduct a risk based analytical review of the business using the proprietary Cannabis Analytical Tracking Solution (CATS™) program to ensure there is no diversion of product or cash. Our unique audit approach allows us to identify if an operator is under-reporting its taxes or diverting product from its facility. HdL audit staff will also use information gathered as part of the onsite inspection to assist with the financial audit. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 28 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 4 HdL will help the City prepare a notification letter to send to the business to start the audit. The letter will contain pertinent information about the audit, including a list of the records requested and a request for access to the business’ point of sale system. HdL recommends the notification letter be sent by the City to encourage cooperation from the business and communicate HdL’s authority to conduct the audit. The audit shall include: Gross receipts verification Risk based CATS™ Analytic Review Inventory review (subject to access to the track and trace system) POS data entry requirements review Preparation and issuance of report Exit conference with the City HdL will provide a draft audit report to the commercial cannabis business. The business will be given the appropriate time to respond or appeal the report in accordance with the City ordinance. HdL will review any documentation provided by the business to dispute the findings and will adjust the tax assessment as necessary prior to issuing the final report to the City. The City will inform HdL when a cannabis business receives permission to operate (i.e., through the issuance of a development agreement, conditional use permit, certificate of occupancy or other indication the business has opened). HdL will then work with the City to schedule financial audits and will coordinate with the City as the time for each audit approaches. Depending upon the corporate structure of each cannabis business and any subdivisions or subsidiaries, it is possible that some businesses may be subject to multiple audits. For purposes of this proposal, a business that holds multiple state cannabis licenses shall be considered a single business provided that all licenses are held and operated under the same name, ownership and a single tax ID number. Any variation may indicate separate business entities requiring separate audits. Any such determination would be made on a case-by-case basis in consultation with the City. Objective 2: Regulatory Compliance Inspections HdL will conduct four on-site compliance inspections annually for each licensed cannabis business to determine compliance with State and/or local laws. If HdL identifies any non- compliant activities, we will provide the City with a recommended appropriate action to address the deficiency and to ensure future compliance by the permittee. The cost for these services includes all of the following: Notifying permittee of pending inspection On-site inspection to ensure that each business complies with all State and local laws and regulatory protocols for all of the following: o Inventory management o Cash handling procedures o Access control o Video surveillance DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 29 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 5 o Alarm system maintenance and safety o Lock standards o Packaging and labeling o Waste management o Transportation documentation o Surveillance equipment maintenance o Occupational badges o Business records o Other items as necessary to ensure compliance with laws Preparation of a draft report detailing the findings of the inspection and providing recommendations for improvement where needed. If the inspection identifies any violations of law or other non-compliance issues, then HdL will prepare a notice to comply as an included part of the report. All travel costs associated with the inspection All phone, email and other communications involved in preparing for, scheduling and coordinating the inspections and providing the report. As with cannabis tax audits, the number of compliance inspections necessary for each business will be determined in consultation with the City, based upon the number and type of state licenses held and operated under the same name, ownership and tax ID number. In addition, operations at separate locations, addresses, building numbers or premises may be subject to separate inspections at additional cost, even if under a single ownership. The cost for this service does not include any follow-up re-inspection or review of any supplemental documents provided to address or contest any findings of non-compliance, nor does it include any assistance with the appeal of any enforcement action by the City. Any costs associated with such additional services would be billed at HdL’s hourly rate. Objective 3: Initial Screening of Applications for Completeness HdL staff will conduct an initial screening of all applications for completeness based upon an objective checklist of required documentation. This initial screening shall allow for some limited discretion in determining whether submitted documents are substantively complete but shall not otherwise consider the quality of the submissions. Applications for competitive licenses that are deemed incomplete will be disqualified and those applicants will not be allowed to submit any supplemental information. Applications for non- competitive licenses that are deemed incomplete will be provided an opportunity to submit supplemental information to complete the application. All applications which have been deemed complete will move forward for a full review by the City’s review panel. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 30 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 6 Objective 4: Proctor the City’s Application Review Process HdL shall provide a subject matter expert who will be available to attend and facilitate the City’s application review process. The City’s application process includes a review panel that that will review all of the applications and then meet to score and rank them. HdL’s subject matter expert shall attend the review panel meeting (or meetings) to proctor or facilitate the process and to serve as a resource to the review team. HdL staff will not separately review the applications, nor will HdL recommend scores or ranking for any applications. This service shall be billed at HdL’s hourly rate, plus travel costs Objective 5: Supplemental Background Checks HdL shall provide background checks of all owners, principals, managers and employees of cannabis businesses as a part of their annual license renewal process. Our supplemental background process expands upon the State-required Live Scan information by checking the subject’s social security number and up to 5 variations of their name or aliases against over 200 million databases nationwide. Our supplemental background checks can identify other factors that local governments may wish to consider before granting discretionary business licenses or permits, including other felony offenses, misdemeanor convictions, arrest records, civil judgements, restraining orders, the terrorist screening database, the national sex offender registry, delinquent child support payments, bankruptcies, employment and credit records, and more. HdL offers a reduced rate for annual renewals after the initial background check has been completed. Our rates include an HdL-designed employee identification badge with the city logo which meets all State requirements. HdL provides an online portal for applicants to submit their application, authorization and all necessary documentation. Prices valid as of the date of this proposal and subject to change without notice. Objective 6: Provide Subject Matter Expertise & Technical Support HdL shall provide additional hours of general consulting in the form of subject matter expertise or technical assistance, to be utilized on an as-needed basis at the City’s request. Such assistance may include monitoring of changes to State laws and regulations, community outreach, participation in conference calls, responding to staff inquires via phone and email, reviewing staff reports to the City Council, assisting with responses to inquiries from the public, or other issues yet to be determined as requested by the City. Background Checks Owner, principal or manager Employee or line staff Initial background check $300 $100 Annual renewal $100 $100 Reissue lost or stolen badge $10 $10 DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 31 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 7 III. COST The proposed services are broken down into specific line items in the cost table below. All of these services are to be provided on an as-needed basis to be billed to the City via invoice. HdL’s fees are based on time, materials and travel-related expenses associated with the execution of the services. The hours and costs in the table below do not include any additional items that are not specifically contemplated by this scope of services. Prices offered here are valid for 90 days from the date of this proposal to allow time for consideration and negotiating a service agreement. Once under contract, prices shall be honored for the initial term of that contract, up to a maximum of 3 years. Scope of Service Objectives Estimated Cost Objective 1: Cannabis Tax Audits Conduct one annual audit of each cannabis business. $6,000 per audit Objective 2: Regulatory Compliance Inspections Assumes 4 inspections per business/per year for an annual cost of $5,000 per business. Includes travel. costs. $1,250 per inspection Objective 3: Initial Screening of Applications for Completeness $195 per application Objective 4: Proctor the City’s Application Review Process To be billed on an hourly basis. $250 per hour Objective 5: Supplemental Background Checks See below Objective 6: Subject Matter Expertise and Technical Assistance To be billed on an hourly basis as needed. $250 per hour Travel Cost If and as needed for any overnight travel. $600 per site visit Estimate of Total Costs N/A Background Checks Owner, principal or manager Employee or line staff Initial background check $300 $100 Annual renewal $100 $100 Reissue lost or stolen badge $10 $10 DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 32 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 8 IV. OPTIONAL SERVICES Hourly Rates for HdL Staff The prices in this proposal are based on the hourly rates for HdL staff as shown in the chart below. Any additional services requested by the client that are not specifically described in this proposal would be billed at the standard rate for the assigned staff person. HdL Staff Title Hourly Rate David McPherson Compliance Director $250 Matt Eaton Deputy Compliance Director $250 Ajay Kolluri Deputy Audit Director $250 Mark Lovelace Senior Policy Advisor $250 Kami Miller Senior Compliance Inspector $195 Michelle Shaw Compliance Inspector $195 Elizabeth Eumurian Senior Auditor $195 Alfredo Marquez Senior Auditor $195 Odette Mikhail Auditor $195 Mark Brogan Auditor $195 Tao Lu Auditor $195 All rates current as of the date of this proposal DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 33 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 9 V. EXPERIENCE AND RESOURCES Company Profile Founded in 1983, HdL is a consortium of three companies established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Its audit and consulting services include sales, use and transaction taxes, property taxes, transient occupancy taxes, and a Cannabis Management Program. The firm also provides a variety of enterprise software processing tools for business licensing, code enforcement, animal control, building permits and tracking/billing of false alarms. HdL’s systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 500 agencies in six states. The firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California. HdL’s key staff has extensive experience serving local government and many have previously held positions in city management, finance, planning, economic development or revenue collection. HdL is a Corporate Partner of the League of California Cities and California State Association of Counties and works extensively with the County Auditor’s Association of California, California Society of Municipal Finance Officers (CSMFO) and California Municipal Revenue and Tax Association (CMRTA) on anticipation and planning of programs to strengthen local government revenues. This close understanding of local government needs coupled with extensive databases and advanced methodology provides for the most relevant, productive and responsive revenue recovery; forecasting; and economic services available. Our team of professionals has over 52 years of direct experience establishing and implementing cannabis regulatory and taxation programs, including establishing land-use regulations, permit processes, staffing plans, and cost recovery fees; structuring cannabis business tax fees; regulatory compliance; financial audits; and law enforcement training. Our team has conducted over 18,000 cannabis compliance inspections and investigations in California, Colorado and Nevada. Key Personnel David McPherson, Compliance Director David McPherson works with local agencies to prepare them to mitigate regulatory issues surrounding Proposition 64 and SB 94. Prior to joining HdL, David served 28 years in local government for the County of Orange and the cities of Newport Beach, San Jose and Oakland. David’s experience as a law enforcement officer, compliance auditor, and tax administrator has provided him a wealth of experience that makes him uniquely qualified to manage HdL’s Cannabis Management Program. While working for the City of Oakland, he became the first Tax Administrator in the country to successfully tax, regulate and audit medical marijuana businesses. David has over 10 years of experience working with cannabis regulatory programs. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 34 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 10 David is one of the state’s most recognized experts in cannabis regulatory policies, compliance implementation and tax policies. His unique knowledge in horticulture, processing and dispensary operations while working for the City of Oakland has made him one of the pioneers in creating a Cannabis Management Program. He uses his experience to assist local and state agencies in developing cannabis policies for regulation, compliance, auditing and economic development. He worked closely with the League of Cities on the development of the Medical Cannabis Regulation and Safety Act (MCRSA) and helped shape SB 94, the Medicinal Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). David provides technical support on cannabis-related matters to the League of Cities, the Police Chief’s Association, Rural County Representatives of California and the California State Association of Counties. In addition, David is working collaboratively with the Department of Consumers Affairs, Department of Food & Agriculture, Department of Health Services and the State Board of Equalization on the implementation of best practices for regulating the cannabis industry for local agencies. David received his Bachelor’s Degree in History from California State University, Fullerton and his Master’s Degree in Public Administration from California State University, Long Beach. While at Long Beach, he was named “Future Urban Administrator of the Year”. Matt Eaton, Deputy Compliance Director Matt Eaton is the Deputy Compliance Director at HdL and plays a critical role in implementing the Cannabis Compliance Program for local agencies. Prior to joining the firm, he was a progressive law enforcement professional with 30 years’ experience conducting criminal/regulatory investigations, and corporate/individual background investigations. While working as a Supervisory Investigator at the Colorado Department of Revenue in the Marijuana Enforcement Division (MED), Matt managed criminal investigators and civilian staff in the Denver Metro and Longmont field offices. During his six-year tenure at the MED, he conducted approximately 10,000 criminal investigations and compliance reviews, including regulatory and financial investigations. He is a subject matter expert on track and trace systems and understands the complexity of reviewing data to ensure businesses are in compliance with state and local regulations. Matt was responsible for planning, developing and implementing report and field inspection protocols for the agency. He also played an instrumental role in recommending changes to current regulations and identifying essential language for new legislation in Colorado. Matt is well known for his ability to maintain working relationships with cannabis industry leaders and external stakeholders in resolving issues. Matt received his Bachelor of Science Degree from Biola University and maintained Police Officer Service Training (POST) certification for over 30 years in California and Colorado. He has also served as an adjunct instructor teaching law enforcement principle related to criminology, correctional processes, procedural law, interviews, interrogations and criminal evidence at AIMS Community College in Greeley, Colorado. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 35 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 11 Ajay Kolluri, Deputy Director of Policy and Audits Ajay Kolluri is the Deputy Director of Audits and Operations for HdL’s Cannabis Division. Ajay is responsible for overseeing the cannabis audit team and the daily operations of the division, which includes special projects such as community outreach, surveys, grant solicitation, revenue analysis, cost recovery fee studies, contracts, budgeting, and marketing. Ajay previously served as Program Manager for the Office of Cannabis Oversight (OCO) at City of Long Beach. Working within the City Manager’s Office, Ajay was responsible for the licensing, regulation and enforcement of all commercial cannabis activity in the City, with one of the largest legal cannabis markets in the state. During his tenure with the OCO, Ajay oversaw the issuance over 200 cannabis business licenses, generating over $10 million in annual revenue for the City. Ajay has experience in all aspects of cannabis oversight, including public health and education, planning and zoning, building inspections, enforcement, social equity, fee development, economic analysis and revenue projections. Prior to overseeing the OCO, Ajay worked in public finance, serving as Budget Analyst for the Department of Financial Management in the City of Long Beach. Ajay holds a Bachelor’s degree in business economics from the University of California, Santa Barbara, and a Master’s degree in public policy from the University of Michigan. Mark Lovelace, Senior Policy Advisor Mark Lovelace has 16 years of broad experience in public policy, community engagement and advocacy and is recognized as a leader in advancing the statewide discussion of medical and recreational cannabis as a policy issue in California. Mark served on the Humboldt County Board of Supervisors from 2009 through 2016 where he was instrumental in developing a comprehensive approach to regulating cannabis, including a voter-approved tax on commercial cultivation and an innovative track and trace pilot program. Mark established and co-chaired the Medical Marijuana Working Group for the California State Association of Counties (CSAC) and helped draft CSAC’s legislative platform for cannabis issues. Mark pioneered the first regional summit on cannabis issues in 2015 which helped guide the development of SB 643 and AB 243, two components of the Medical Cannabis Regulation and Safety Act (MCRSA). Mark has worked extensively with public agencies and statewide associations on cannabis issues, including CSAC, Rural County Representatives of California, the Association of California Water Agencies, the North Coast Resource Partnership, California Department of Fish and Wildlife, the State Water Board, the North Coast Regional Water Board, the Bureau of Cannabis Control, State legislators, and others. He has led numerous presentations, workshops and panel discussions on cannabis issues and has been a sought-after speaker on the topic for government agencies, community organizations and industry groups. Mark received his Bachelor of Science degree in Industrial Design from San Jose State University. Prior to his time on the Board, he worked for many years as a respected advocate on land use, planning, development and environmental issues. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 36 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 12 Kami Miller, Senior Compliance Inspector Kami Miller is a Senior Compliance Inspector at HdL whose primary role is to ensure cannabis compliance and identify the risk assessment in the supply chain process of each permitted business. Prior to joining the firm, she served three years as a Marijuana Compliance Manager for the Department of Public Behavior and Health (DPBH) for the State of Nevada. During this time Kami played a key role in Nevada’s implementation of its Medical Marijuana Program in which she was responsible for statewide monitoring of medical marijuana facilities that included cultivation, production, testing labs and retail stores. During her tenure at the DPBH, Kami managed compliance auditors and support staff in the Las Vegas office. She conducted approximately 1,000 compliance and financial inspections for which she developed the inspection protocols documentation to create comprehensive reports. In addition, her experience with various cannabis track and trace systems allowed her to develop industry supply chain practices for the Department of Taxation. Kami received her Bachelor of Business Administration in E-Commerce and Supply Chain Management from Tennessee State University. Michelle Shaw, Compliance Inspector Michelle is a Cannabis Compliance Inspector at HdL and is tasked with conducting onsite inspections, examinations and other actions to monitor compliance with established standards for local licensed cannabis businesses. Prior to joining HdL, she was a Compliance Specialist Officer at a large, multinational bank where she managed, validated and oversaw the effectiveness and accuracy of numerous compliance issues within the consumer retail space. Throughout her eight years of experience at the bank, she performed onsite assessments of affiliate businesses to determine compliance/non-compliance of their processes and procedures pursuant to bank standards and state regulations. A graduate of Cypress College, Michelle holds a Foundations of Banking Risk certificate from the Global Association of Risk Professionals and a paralegal certificate from the Southern California College of Business and Law. Alfredo Marquez, Senior Auditor Alfredo Marquez is a Senior Auditor at HdL. His primary role is to conduct cannabis tax audits. Alfredo previously worked for a publicly traded corporation as a Senior Internal Auditor where he performed risk assessments of new business acquisitions, financial and Sarbanes & Oxley audits. He also conducted compliance audits in the areas of commercial and government contracts, export and import activities, and general information technology controls. In these roles he worked with employees at various levels within the organization across North America, Latin America, Europe, and Asia in order to meet organizational objectives. Alfredo has recently done work for the Cities of Cotati, Cloverdale, Desert Hot Springs, Perris, Port Hueneme, and Vallejo. He earned his Bachelor’s degree in Accounting from the University of La Verne. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 37 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 13 Elizabeth Eumurian, Senior Auditor Elizabeth Eumurian is a Senior Auditor at HdL. Her primary role is to conduct financial audits, evaluate cannabis applications and conduct background checks. As part of the audit program, she will be conducting and preparing analytical information through the CATS™ program to prepare Tax Analytical Remittance Reports (TARR) summaries to evaluate under reporting or anomalies in the remittance of tax payments to local jurisdictions. Elizabeth previously worked as a senior auditor in the entertainment industry. In this role, she executed testing procedures for targeted audit programs, analyzed findings and prepared audit and compliance reports. She also has experience working for a large financial institution analyzing data for reporting anomalies and performing internal audits. Elizabeth has recently done work for Blythe, California City, Coachella, Cotati, Desert Hot Springs, Long Beach, Mammoth Lakes, Moreno Valley, Perris, San Bernardino, and Vallejo. Elizabeth earned her Bachelor of Arts degree in History from California State University and holds a certificate in CannaBusiness from Oaksterdam University. Odette Mikhail, Auditor Odette Mikhail is an Auditor at HdL. Her primary role is to conduct financial audits. Odette previously worked as a senior auditor at public accounting firms. In this role, she executed testing procedures for audit and review engagements, identified accounting issues, reviewed internal controls, and prepared financial reports and statements. Odette earned her Bachelor of Science degree in Accounting and Business Administration from Ain Shams University in Cairo, Egypt. Tao Lu, Auditor Tao Lu works as an Auditor for HdL’s Cannabis Management Team. Tao has two and a half years’ experience as an accountant with an emphasis in information technology and food manufacturing industries. He also has public audit work experience at RSM China. Tao was born and raised in China. He earned a Bachelor’s Degree in Accounting and Finance from Syracuse University in New York before relocating to Southern California with his family. Mark Brogan, Auditor Mark Brogan works as an Auditor for HdL’s Cannabis Management Team. Mark previously worked for the City of San Jose as a Financial Analyst and later as a Supervisor in the Revenue Management Division of the City’s Department of Finance. Mark also worked in the City’s Housing Department prior to his time with the Department of Finance. Mark holds a Bachelor’s Degree in Business Administration from San Jose State University, with a minor in Economics. Mark is also an accomplished triathlete and has successfully completed numerous marathons and Iron Man competitions. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 38 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 14 DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 39 Proposal for Cannabis Compliance and Audit Services for the City of San Luis Obispo March 25, 2021 15 VI. REFERENCES City of Port Hueneme Tony Stewart Director of Community Development Phone: 805.986.6520 Email: tstewart@cityofporthueneme.org City of Maywood Jennifer Vasquez City Manager Phone: 323.562.5721 Email: jennifer.vasquez@cityofmaywood.org City of King City Steve Adams City Manager Phone: 831.386.5917 Email: sadams@kingcity.com City of Goleta Luke Rioux Finance Director Phone: 805.562.5508 Email: lrioux@cityofgoleta.org DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 40 EXHIBIT B GENERAL TERMS AND CONDITIONS 1.Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section E of the City’s Request for Proposal referenced in paragraph 2 of the Agreement, unless changes are otherwise approved and agreed to in writing between the parties. If the Agreement is entered into outside of a Request for Proposal, Contractor shall provide proof of insurance in the form of coverages and amounts specified in Exhibit C. 2.Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license & tax certificate before execution of the contract. Additional information regarding the City’s business tax program may be obtained by calling (805) 781-7134. 3.Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with all federal, state, county, city, and special district laws, ordinances, and regulations. 4.Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 5.Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 6.Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 7.Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 8.Public and Employee Safety. Whenever the Contractor’s operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 9.Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor’s operations, it shall be replaced or restored at the Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 10.Immigration Act of 1986. The Contractor warrants on behalf of itself and all DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 41 subcontractors engaged for the performance of this work that only persons authorized to work in the United State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 11. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 12. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City’s sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 13. Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Contractor (Net 30). 14. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done, and all materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 15. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 16. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 17. Hold Harmless and Indemnification. (a) Non-design, non-construction Professional Services: To the fullest extent permitted by DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 42 law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 43 under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance. 18.Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 19.Termination for Convenience. The City may terminate all or part of this Agreement for any or no reason at any time by giving 30 days written notice to Contractor. Should the City terminate this Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price; (b) for custom products, the less of a reasonable price for the raw materials, components work in progress and any finished units on hand or the price per unit reflected on this Agreement. For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected on this Agreement. Upon termination notice from the City, Contractor must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. 20.Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor’s surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the terminations thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 44 the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City’s assessment of the value of the work-in-progress in completing the overall work scope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 45 Exhibit C – Insurance The Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Errors and Omissions Liability insurance as appropriate to the consultant's profession. Minimum Limits of Insurance. Consultant shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 4. Errors and Omissions Liability: $1,000,000 per occurrence. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. 3. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 46 suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30)days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage. Consultant shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. DocuSign Envelope ID: FC757967-7834-4B4D-B3B1-DF20BC7FE54F Item 10 Packet Page 47 R 11213 RESOLUTION NO. 11213 (2021 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE CITY’S MASTER FEE SCHEDULE WITH UPDATED USER AND REGULATORY FEES FOR VARIOUS COMMERCIAL CANNABIS BUSINESS ACTIVITIES WHEREAS, it is the City’s policy (User Fee Recovery Goals - Financial Plan Section H) to assess service charges based on specific policies for cost recovery of services provided; and WHEREAS, on May 15, 2018, the City Council adopted Ordinance No. 1647 ( 2018 Series) establishing a comprehensive regulatory program for the evaluation and permitting of commercial cannabis business operations within the City; and WHEREAS, on November 27, 2018, the City Council adopted Resolution 10965 (2018 Series) which updated the City’s Master Fee Schedule to include the one-time application fees and yearly license renewal fees; and WHEREAS, on December 2, 2019, the City Council adopted Resolution 11066 (2019 Series) which updated the City’s Master Fee Schedule that updated the one-time cannabis application fee for all types of cannabis businesses permitted within the City; and WHEREAS, Section 9.10.050 of the Municipal Code says that the City Council shall adopt fees necessary to implement the regulations in relation to Commercial Cannabis Operator Permits; and WHEREAS, the City has contracted with a consultant, HdL, to prepare a fee study for the purpose of identifying appropriate fees to assess for various activities associated with implementing and overseeing the City’s cannabis regulations for each business in the City of San Luis Obispo; and WHEREAS, the City has completed one full year of operations to collect information on actual time spent compared to the initial cannabis yearly license renewal fees City Council adopted through Resolution 10965 (2018 Series), upon which staff has concluded it necessary to adjust the yearly license renewal fees for all types of cannabis businesses permitted within the City; and WHEREAS, public outreach was conducted through outreach by staff members to cannabis businesses impacted by the newly proposed fees and through publication of the proposed fee schedule on the City’s website in advance of the City Council’s consideration of the newly proposed fees; and WHEREAS, on November 27, 2018, the City Council adopted a fee schedule; and WHEREAS, on December 3, 2019 City Council adopted an updated fee schedule; and Item 10 Packet Page 48 Resolution No. 11213 (2021 Series) Page 2 R 11213 WHEREAS, on January 19, 2021 the City Council held a public hearing to review and discuss the updated proposed fee schedule, receive public input, and consider the recommendations of its staff. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The City Council makes the following findings: 1. That the above recitals are true and correct. 2. That the proposed user and regulatory fees are consistent with the City’s cost recovery goals (Financial Plan Section H), and that the established fees do not exceed the estimated reasonable cost of providing the service or performing the activity for which the fee is imposed. Item 10 Packet Page 49 Resolution No. 11213 (2021 Series) Page 3 R 11213 SECTION 2. Action. The City Council takes the following actions: 1. The City’ s Master Fee Schedule is hereby amended to include updated user and regulatory fees for cannabis business operator applications and annual operator permit licenses as provided in Exhibit A attached hereto. 2. The City will reimburse operators through the Finance Department who have already paid their 2020-2021 yearly license renewal fees the difference of what the operators paid based on the City’s 2020-2021 Master Fees and the newly proposed fees in Exhibit A attached hereto. 3. This resolution supersedes Resolution 11066 (2019 Series) to the extent inconsistent herewith. Upon motion of Council Member Christianson, seconded by Council Member Pease, and on the following roll call vote: AYES: Council Member Christianson, Marx, Pease, Vice Mayor Stewart, and Mayor Harmon NOES: None ABSENT: None The foregoing resolution was adopted this 19th day of January 2021. 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, on ___________________________. Teresa Purrington, City Clerk Item 10 Packet Page 50 Resolution No. 11213 (2021 Series) Page 4 R 11213 EXHIBIT A CITY OF SAN LUIS OBISPO Cannabis Fee Schedule One Time Application Fees All Commercial Cannabis Business Applicants: Initial Application Fee $5,087.79 Final Application Fee when permit issues $18,797.63 Total One Time Application Fees $23,885.55 Yearly License Renewal Fees All types of Cannabis Businesses permitted within the City $39,638.38 Item 10 Packet Page 51 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 10 Packet Page 52 Department Name: Community Development Cost Center: 4008 For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Director Prepared By: Cara Vereschagin, Housing Coordinator SUBJECT: AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP) FOR A CONSULTANT TO SERVE AS THE CITY’S BELOW MARKET RATE (BMR) HOUSING PROGRAM ADMINISTRATOR RECOMMENDATION 1. Authorize the issuance of a Request for Proposals (RFP) for a Below Market Rate (BMR) Program Administrator (Attachment A); and 2. Authorize the City Manager to enter into a consultant services agreement if proposals are received within the available budget of $117,000 annually for the project. DISCUSSION Below Market Rate Program History and Portfolio The City’s first Inclusionary Housing Ordinance was adopted in 1999 and since that time, the City has made great strides in ensuring that a percentage of all new housing units are affordable to income-eligible households, defined as extremely low, very-low, low, and moderate income. These homes remain at Below Market Rate (BMR) prices for the required term through deed- restrictions, covenants, and affordability agreements. Over the past several years, the City's BMR portfolio has grown substantially, and staff has determined that the best way to effectively accomplish the management and administration of BMR housing going forward is through a consultant. As a result, staff is recommending issuance of an RFP to solicit outside consultant expertise to oversee BMR housing administration, including ownership and rental units, and administration of the City’s First-Time Homebuyer Loan program. 1. BMR Ownership Units There are approximately 73 BMR homeownership units within the City’s portfolio. The most recent additions are five moderate-income units within the South Morros neighborhood, of which three have sold in the past eight months and the other two are expected to sell by the end of summer. These units are restricted through provisions included in the Deed of Trust, Promissory Note, and Resale Restriction Agreement that are recorded on title of each property when it is sold. These documents, among other items, dictate the sale/resale process, the allowable sales price, income qualifications of subsequent buyers, refinancing provisions, and repayment requirements due upon sale or default. Item 11 Packet Page 53 Management of these units by a BMR Administrator under contract with the City is expected to provide a higher level of service to homeowners and potential homeowners under the program. Currently, the City has one staff member who has the training and knowledge to assist with these complex real estate transactions, while simultaneously engaging in other housing programs, including the Housing Major City Goal workplan, Housing Element programs, and coordination of new affordable housing development and financing. The use of a consultant to perform this work will ensure timely processing of purchase and sale agreements, refinancing, subordination agreements, and other time sensitive work. 2. BMR Rental Units The City has approximately 106 affordable rental units scattered throughout the City. These units are located within market-rate projects and require close oversight since they are not normally managed by an experienced affordable housing administrator/provider. These units are typically built by private developers, consistent with the Inclusionary Housing Ordinance, and are secured as affordable through deed-restrictions (or affordability covenants/agreements) entered into by the City and the project owners. The units subject to these agreements are proposed to be managed by the BMR Administrator. The City also has a healthy inventory of rental units managed by non-profit housing agencies (i.e., HASLO, Peoples’ Self-Help Housing, etc.), which were partially developed by City financing mechanisms (i.e., the Affordable Housing Fund, Community Development Block Grants, Impact Fee Deferral loans). These units are within complexes that are 100% affordable due to tax credit and/or other subsequent federal, state, and local requirements, and thus have multiple deed-restrictions recorded on title of the properties due to the criteria stipulated by those various funding sources. Because these units are managed by experienced affordable housing administrators, the City is not proposing to have the proposed BMR Administrator manage these units—compliance monitoring and coordination with non-profit partners that manage these projects will stay within the scope of work of City staff. 3. First-Time Homebuyer/BEGIN Program Loans The City also has various first-time homebuyer assistance loans utilizing the State grant BEGIN Program and City Affordable Housing Fund dollars. Currently, there are 11 active loans and approximately $200,000 available for issuance. Funds are issued as 30-year loans, that are executed via a Promissory Note, evidenced by a Deed of Trust that is recorded on title of the property purchased. Repayment is due upon sale, may be made at the request of the homeowner, or is due upon completion of the loan term. The BMR Administrator will monitor existing loans and improve City marketing of the program to make additional loans within the City’s balance of available funding. Item 11 Packet Page 54 Anticipated Scope of Services for BMR Program Administrator: The RFP solicits the services of a BMR program administrator to oversee the administration of the City’s BMR ownership and rental units, as well as the First-Time Homebuyer Loan program. It is anticipated that the BMR administrator will be responsible for the following: 1. BMR Program Administration Setup a. Review, update (if necessary), and transfer the City’s existing BMR Interest List database to consultant administration which will be owned by the City. b. Review and organize San Luis Obispo BMR homeowner files, loan files, and the City’s existing digital inventory and create a system for ongoing administration and monitoring. c. Review existing BMR Agreement templates and suggest modifications that are in line with industry best practices. d. Update existing flow charts and protocols for BMR home transfers, loan payoff/subordination, default remedies, and other processes associated with BMR ownership transactions. e. Review and develop recommendations to establish new City impact fees associated with costs of BMR Program transactions. f. Update City Affordable Housing webpage with content and information pertaining to updated/amended policies and procedures for the BMR Program, online application forms and other relevant information. 2. BMR Program Administration a. BMR Inquiries (ongoing): The BMR Administrator will be responsible for handling calls, emails, and in-person inquiries from current housing portfolio loan holders and respond in a timely manner. b. BMR Eligibility and Interest List (ongoing): The BMR Administrator will maintain a list of qualified buyers and interested prospective buyers. c. BMR Program Reports: The BMR Administrator will provide semi-annual updates to staff and the City Council on the general status of the BMR program administration, including: i. General Program activity (e.g., BMR inquiries) ii. BMR compliance. See item #3 iii. Loan activity. See item #4 iv. Current inventory of affordable units (subject to formal Agreement with the City) v. Other information as needed for mandated State reporting 3. Annual BMR Compliance Monitoring a. Documentation: Administrator will administer the program and assure Affordability Deed Restrictions are recorded and followed by all parties as applicable for each property. b. BMR Homeowner Certification: The BMR Administrator will coordinate with homeowners on an annual basis to certify that the original buyer continues to comply with the signed BMR Agreement including living in the BMR home as their principal residence. The BMR Administrator will work with the City to remedy potential BMR defaults in accordance with the BMR Agreement. Item 11 Packet Page 55 c. BMR Renter Certification: The BMR Administrator will coordinate with property managers, tenants, and the Housing Authority of San Luis Obispo (HASLO) on an annual basis to certify that all BMR units are occupied by renters who continue to meet income requirements. The BMR Administrator will also ensure that the appropriate rent and utilities are being charged given annual updates to the City’s Affordable Housing Standards, based on State income limits for our area. 4. Existing Loan Administration a. The BMR Administrator will maintain an updated database, to be owned by the City, of all first-time-homebuyer and other housing loans (borrower name and address, loan amount, interest rate, loan term, loan distribution date and due date). This database will also include principal and interest received for loans that have been paid off, as well as any principal written off as a result of foreclosure or other default. b. The BMR Administrator will monitor existing first-time-homebuyer and other housing loans annually to ensure that the borrower remains in compliance with the loan agreement (e.g., current homeowner insurance, original buyer continues to reside on property). In case of default, the BMR Administrator will contact the owner and work with the City to see that the loan is repaid. c. The BMR Administrator will work with the City to process all paperwork and legal recordings required when first-time homebuyer loans and other housing loans are paid off or refinanced (as needed basis). 5. BMR Home Sales/Resales (as needed basis) a. BMR Marketing: The BMR Administrator will work with each Developer and/or the City to market the availability of new and resale BMR homes to eligible households who have expressed interest in the BMR program. BMR Administrator will also be responsible ensuring developers’ compliance with sale provisions dictated in recorded Development Agreements (i.e. San Luis Ranch and Avila Ranch) and Affordable Housing Agreements. This task will include providing marketing materials in both English and Spanish to City staff for the City’s website. b. Interest Rates, Homeowner’s Association Fees, and Sales Price: Upon request, the BMR Administrator will supply the City with current mortgage interest rates and other information necessary to amend (if necessary) sales prices and/or interest rates of new BMR homes and existing BMR homes being offered for resale. c. Homeowner Eligibility: The BMR Administrator will submit the data on each eligible applicant to the City for approval prior to formalizing any Agreement. Item 11 Packet Page 56 6. BMR Programs: The BMR Administrator will work with City staff to recommend, develop and implement programs. City Council will approve any new programs under this task. a. Administrator will regularly update program guidelines and program materials in conjunction with City staff to reflect the Administrator’s administrative process for Program Administration including, but not limited to: applications, program pamphlets, rent & resale calculations (i.e. Affordable Housing Standards), selection processes, vacancies, sale and resale of units, refinancing requests, collection of Agency fees and other applicable fees, and default monitoring/resolution process. Administrator’s objective will be to work alongside Agency Staff to incorporate “learnings” from the team’s collective history with housing affordability programs in California. Next Steps If approved, the RFP will be published on the City’s website and distributed to consultants experienced in administering BMR Programs on behalf of local governments. After the submission date has closed, staff will review proposals received and interview consultants, to ultimately transfer the administration of the City’s BMR Portfolio. Contract award will occur after July 1 if the budget for the proposed consultant services is approved as part of the 2021 -23 Financial Plan. Timing to get a BMR Administrator onboard this summer is critical, as staff anticipating having little availability this fall amidst “grant season” and the Inclusionary Housing policy update work effort will be underway. Policy Context The activity to consider outside consultant services to administer the City’s BMR Program is currently identified in the 2021-23 Financial Plan and related Housing and Homelessness Major City Goal workplan. Public Engagement Staff will notice the RFP release in alignment with proper procedures for public bidding as mandated in the Municipal Code and Public Engagement Manual. Staff will also circulate the notice to interested parties and publish the notice to various digital media channels. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Years: 2021-2023 Funding Identified: Yes Item 11 Packet Page 57 Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Local Revenue Measure G-20 $117,000 $234,00 Total $117,000 $234,000 The activity to consider outside consultant services to administer the City’s BMR Program is currently identified in the 2021-2023 Financial Plan, under Significant Operating Program Change (SOPC) – Housing and Homelessness Major City Goal (Consultant Contract) and $117,000 has been estimated annually for this effort. ALTERNATIVES 1. Provide different direction to staff. The City Council can provide additional or different direction to staff regarding the scope of work, based on the identified issues and considerations, and continue authorization of the RFP. 2. Continue this item. Continue the discussion regarding the authorization of the RFP and provide staff direction on additional needed or necessary changes. Attachments: a - DRAFT Below Market Rate Program Administrator Request for Proposals Item 11 Packet Page 58 The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities. Telecommunications Device for the Deaf (805) 781-7410. Notice Requesting Proposals for Below Market Rate Program Administrator Spec. No. SLO-BMR-2021 The City of San Luis Obispo is requesting sealed proposals for a Below Market Rate (BMR) Housing Program Administrator over a 2-year term (with an option to extend for another 2 years). All proposals must be received by the Department of Finance (990 Palm Street) by 3:00 p.m. on June 4, 2021. All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will be required to complete a free registration proposal using BidSync (https://www.bidsync.com/bidsync- app-web/vendor/register/Login.xhtml). All proposals must be received via BidSync by the Department of Finance at or before June 4, 2021, when they will be opened electronically in BidSync. Proposals received after said time may not be considered. The preferred method of submission is electronically via BidSync, but if you wish to send a hard copy, to guard against premature opening, each proposal shall be submitted to the Department of Finance in a sealed envelope plainly marked with the proposal title, project number, proposer name, and time and date of the proposal opening. Proposals shall be submitted using the forms provided in the project package. An optional pre-proposal conference will be held to answer any questions that the prospective proposers may have regarding the City's request for proposals. [Pre-proposal conferences are optional but should be included in the notice if one is held] May 26, 2021 at 1:00 p.m. Via Teleconference Teleconferencing details TBD Project packages and additional information may be obtained at the City’s BidSync website at www.BidSync.com. Please contact Dan Clancy at dclancy@slocity.org with any questions. For technical issues with BidSync, please contact BidSync customer help at [800-990-9339] Item 11 Packet Page 59 TABLE OF CONTENTS A. INTRODUCTION ............................................................................................................................... 1 B. SCOPE OF WORK ............................................................................................................................. 2 C. PROJECT SCHEDULE ......................................................................................................................... 4 D. PROJECT BUDGET ............................................................................................................................ 4 E. GENERAL TERMS AND CONDITIONS ................................................................................................ 4 F. CONTRACT AWARD AND EXECUTION .............................................................................................. 5 G. CONTRACT PERFORMANCE ............................................................................................................. 6 H. SPECIAL TERMS AND CONDITIONS .................................................................................................. 9 I. PROPOSAL CONTENT ..................................................................................................................... 11 J. PROPOSAL REVIEW ....................................................................................................................... 13 K. FORM OF AGREEMENT .................................................................................................................. 15 L. INSURANCE REQUIREMENTS ......................................................................................................... 17 M. PROPOSAL SUBMITTAL FORM – SAMPLE .................................................................................. 18 Item 11 Packet Page 60 Page | 1 A. INTRODUCTION The City’s first Inclusionary Housing Ordinance was adopted in 1999 and since that time, the City has made great strides in ensuring that a percentage of all new housing units are affordable to income-eligible households, defined as extremely-low, very-low, low, and moderate income. These homes are insured to remain at prices “below the market rate (BMR)” through deed-restrictions, covenants, and affordability agreements. Over the past several years, the City's BMR Portfolio has grown substantially, and staff is experiencing that they do not have the capacity nor resources to effectively accomplish the management and administration of this effort moving forward, especially given the high volume of affordable housing development on the horizon, estimated to be approximately 160 units. It is for those reasons the City of San Luis Obispo is soliciting outside consultant expertise to oversee the administration of this program for BMR ownership and rental units, as well as the First-Time Homebuyer Loan program. BMR Ownership Units There are approximately 73 BRM homeownership units within the City’s Inclusionary Housing Portfolio. The most recent additions are 5 units within the South Morros neighborhood, of which 3 have sold in the past eight months and the other 2 are expected to sell by the end of summer. These units are restricted with a mix of Deeds of Trust, Promissory Notes, and Resale Restriction Agreements that are recorded on title of the properties. These documents, among other items, dictate the sale/resale process, the allowable sales price, income qualifications of subsequent buyers, refinancing provisions, and repayment requirements due upon sale or default. BMR Rental Units The City has approximately 106 affordable rental units scattered throughout the City in majority market- rate complexes. These units were built consistent with the Inclusionary Housing Ordinance and are secured affordable through deed-restrictions (or affordability covenants/agreements) entered into by the City and the owners of the overall development. The units subject to these agreements are proposed to be managed by the BMR Administrator Consultant. The City also has a healthy inventory of rental units managed by non-profit housing agencies (i.e. HASLO, Peoples’ Self-Help Housing, etc.), which were partially developed by City financing mechanisms (i.e. the Affordable Housing Fund, Community Development Block Grants, Impact Fee Deferral loans). These units are within complexes that are 100% affordable due to tax credit and/or other subsequent federal, state, and local requirements, and thus have multiple deed-restrictions recorded on title of the properties due to the criteria stipulated by those various funding sources. Because of the complexity of these compliance requirements, the City is not proposing to have the BMR Administrator Consultant manage these units and will stay within staff’s purview to monitor. First-Time Homebuyer/BEGIN Program Loans The City also has various first-time homebuyer assistance loans utilizing the State grant BEGIN Program and City Affordable Housing Fund dollars. Currently, there are 11 active loans and approximately $200,000 available for issuance. Funds are issued as 30-year loans, that are executed via a Promissory Note, evidenced by a Deed of Trust that are recorded on title of the property purchased, which are due upon sale or at the request of the homeowner. The City anticipates the BMR Administrator Consultant will be able to monitor and market these loans given their anticipated expertise in loan management. Item 11 Packet Page 61 Page | 2 B. SCOPE OF WORK The subject RFP solicits the services of a BMR Program Administrator consultant to oversee the administration of the City’s BMR ownership and rental units, as well as the First-Time Homebuyer Loan program. It is anticipated that administrator will be responsible for the following: 1. BMR Program Administration Setup a. Review, update (if necessary), and transfer the City’s existing BMR Interest List database to consultant administration which will be owned by the City. b. Review and organize San Luis Obispo BMR homeowner files, loan files, and the City’s existing digital inventory and create a system for ongoing administration and monitoring. c. Review existing BMR Agreement templates and suggest modifications that are in line with industry best practices. d. Update existing flow charts and protocols for BMR home transfers, loan payoff/subordination, default remedies, and other processes associated with BMR ownership transactions. e. Review and develop recommendations to establish new City impact fees associated with costs of BMR Program transactions. f. Update City Affordable Housing webpage with content and information pertaining to updated/amended policies and procedures for the BMR program, online application forms and other relevant information. 2. BMR Program Administration a. BMR Inquiries (ongoing): The BMR Administrator will be responsible for handling calls, emails, and in-person inquiries from current housing portfolio loan holders and respond in a timely manner. b. BMR Eligibility and Interest List (ongoing): The BMR Administrator will maintain a list of qualified buyers and interested prospective buyers. c. BMR Program Reports: The BMR Administrator will provide semi-annual updates to staff and the City Council on the general status of the BMR program administration, including: i. General Program activity (e.g., BMR inquiries) ii. BMR compliance. See item #3 iii. Loan activity. See item #4 iv. Current inventory of affordable units (subject to formal Agreement with the City)vii. Other information as needed for State reporting 3. Annual BMR Compliance Monitoring a. Documentation: Administrator will administer the program and assure Affordability Deed Restrictions are recorded and followed by all parties as applicable for each property. Item 11 Packet Page 62 Page | 3 b. BMR Homeowner Certification: The BMR Administrator will coordinate with homeowners on an annual basis to certify that the original buyer continues to comply with the signed BMR Agreement including living in the BMR home as their principal residence. The BMR Administrator will work with the City to remedy potential BMR defaults in accordance with the BMR Agreement. c. BMR Renter Certification: The BMR Administrator will coordinate with property managers, tenants, and the Housing Authority of San Luis Obispo (HASLO) on an annual basis to certify that all BMR units are occupied by renters who continue to meet income requirements. The BMR Administrator will also ensure that the appropriate rent and utilities are being charged given annual updates to the City’s Affordable Housing Standards, based on HUD income limits. 4. Existing Loan Administration a. The BMR Administrator will maintain an updated database, to be owned by the City, of all first- time-homebuyer and other housing loans (borrower name and address, loan amount, interest rate, loan term, loan distribution date and due date). This database will also include principal and interest received for loans that have been paid off, as well as any principal written off as a result of foreclosure or other default. b. The BMR Administrator will monitor existing first-time-homebuyer and other housing loans annually to ensure that the borrower remains in compliance with the loan agreement (e.g., current homeowner insurance, original buyer continues to reside on property). In case of default, the BMR Administrator will contact the owner and work with the City to see that the loan is repaid. c. The BMR Administrator will work with the City to process all paperwork and legal recordings required when first-time homebuyer loans and other housing loans are paid off or refinanced (as needed basis). 5. BMR Home Sales/Resales (as needed basis) a. BMR Marketing: The BMR Administrator will work with each Developer and/or the City to market the availability of new and resale BMR homes to eligible households who have expressed interest in the BMR program. BMR Administrator will also be responsible ensuring Developers compliance with sale provisions dictated in recorded Development Agreements (i.e. San Luis Ranch and Avila Ranch) and Affordable Housing Agreements. This task will include providing marketing materials in both English and Spanish to City staff for the City’s website. b. Interest Rates, Homeowner’s Association Fees, and Sales Price: Upon request, the BMR Administrator will supply the City with current mortgage interest rates and other information necessary to amend (if necessary) sales prices and/or interest rates of new BMR homes and existing BMR homes being offered for resale. c. Homeowner Eligibility: The BMR Administrator will submit the data on each eligible applicant to the City for approval prior to formalizing any Agreement. 6. BMR Programs: The BMR Administrator will work with City staff to recommend, develop and implement programs. City Council will approve any new programs under this task. Item 11 Packet Page 63 Page | 4 a. Administrator will regularly update program guidelines and program materials in conjunction with Agency staff to reflect the Administrator’s administrative process for Program Administration including, but not limited to: applications, program pamphlets, rent & resale calculations (i.e. Affordable Housing Standards), selection processes, vacancies, sale and resale of units, refinancing requests, collection of Agency fees and other applicable fees, and default monitoring/resolution process. Administrator’s objective will be to work alongside Agency Staff to incorporate “learnings” from the team’s collective history with Affordability Programs in California. C. PROJECT SCHEDULE As this Project will be ongoing, no activity and scheduled dates are necessary. Instead, contractor will comply with expectations and reporting deadlines outlined in the Scope of Work and subsequent agreement to be executed upon selection of contractor. Please refer to Section I – Proposal Review below for a tentative schedule regarding the review process for proposals received. Note that administration of the BMR Program is due to commence on August 16, 2021. D. PROJECT BUDGET The administration of the City’s BMR Program is budgeted at $117,000 annually for the next two City fiscal years (Year1: July 1, 2021 – June 30, 2022; Year 2: July 1, 2022 - June 30, 2023). Upon the end of the two-year period, the City will consider extending contract budget for subsequent 2-year period. E. GENERAL TERMS AND CONDITIONS PROPOSAL REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue of its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be enclosed in an envelope that shall be sealed and addressed to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature opening, the proposal should be clearly labeled with the proposal title, project number, name of bidder, and date and time of proposal opening. No FAX or emailed submittals will be accepted. 3. Insurance Certificate. Each proposal must include a certificate of insurance showing: a. The insurance carrier and its A.M. Best rating. b. Scope of coverage and limits. c. Deductibles and self-insured retention. The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required until contract award. The City’s insurance requirements are detailed in Section E. Item 11 Packet Page 64 Page | 5 4. Proposal Quotes and Unit Price Extension . The extension of unit prices for the quantities indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount stated by any bidder for any item are not in agreement, the unit price alone will be considered as representing the bidder’s intention and the proposal total will be corrected to conform to the specified unit price. 5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened. No proposal received after the time specified or at any place other than that stated in the “Notice Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared publicly. Bidders or their representatives are invited to be present at the opening of the proposals. 6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested as the primary submitter in more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other bidders submitting proposals. 7. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged but will be permitted. However, any such oral communication shall not be binding on the City. F. CONTRACT AWARD AND EXECUTION 8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the “special terms and conditions” in Section C of these specifications for proposal evaluation and contract award criteria. 9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of bidders. Bidders will provide, in a timely manner, all information that the City deems necessary to make such a decision. 10. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. Item 11 Packet Page 65 Page | 6 G. CONTRACT PERFORMANCE 11. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section E of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution. 12. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license & tax certificate before execution of the contract. Additional information regarding the City’s business tax program may be obtained by calling (805) 781-7134. 13. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with all federal, state, county, city, and special district laws, ordinances, and regulations. 14. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 15. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 16. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 17. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 18. Public and Employee Safety. Whenever the Contractor’s operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 19. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor’s operations, it shall be replaced or restored at the Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 20. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 21. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination Item 11 Packet Page 66 Page | 7 in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 22. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City’s sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 23. Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Contractor (Net 30). 24. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done, and all materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 25. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 26. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 27. Hold Harmless and Indemnification. (a) Non-design, non-construction Professional Services: To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a Item 11 Packet Page 67 Page | 8 party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant under this paragraph exceed Consultant’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance. Item 11 Packet Page 68 Page | 9 28. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 29. Termination for Convenience. The City may terminate all or part of this Agreement for any or no reason at any time by giving 30 days written notice to Contractor. Should the City terminate this Agreement for convenience, the City shall be liable as follows: (a) for standard or off -the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price; (b) for custom products, the less of a reasonable price for the raw materials, components work in progress and any finished units on hand or the price per unit reflected on this Agreement. For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected on this Agreement. Upon termination notice from the City, Contractor must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. 30. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor’s surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the terminations thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City’s assessment of the value of the work- in-progress in completing the overall work scope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. H. SPECIAL TERMS AND CONDITIONS 1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms and Conditions) of these specifications, the contract will be awarded to the lowest responsible, responsive proposer. Item 11 Packet Page 69 Page | 10 2. Sales Tax Reimbursement. For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues. Therefore, for bids from retail firms located in the City at the time of proposal closing for which sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the proposal by the City in calculating and determining the lowest responsible, responsive proposer. 3. Labor Actions. In the event that the successful proposer is experiencing a labor action at the time of contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right to declare said proposer is no longer the lowest responsible, responsive proposer and to accept the next acceptable low proposal from a proposer that is not experiencing a labor action, and to declare it to be the lowest responsible, responsive proposer. 4. Failure to Accept Contract. The following will occur if the proposer to whom the award is made (Contractor) fails to enter into the contract: the award will be annulled; any bid security will be forfeited in accordance with the special terms and conditions if a proposer's bond or security is required; and an award may be made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if it were the party to whom the first award was made. 5. Contract Term The supplies or services identified in this specification will be used by the City for up to one year. The prices quoted for these items must be valid for the entire period indicated above unless otherwise conditioned by the proposer in its proposal. 6. Contract Extension. The term of the contract may be extended by mutual consent for an additional one -year, and annually thereafter, for a total of four years. 7. Supplemental Purchases. Supplemental Purchases. Supplemental purchases may be made from the successful proposer during the contract term in addition to the items listed in the Detail Proposal Submittal Form. For these supplemental purchases, the proposer shall not offer prices to the City in excess of the amounts offered to other similar customers for the same item. If the propose r is willing to offer the City a standard discount on all supplemental purchases from its generally prevailing or published price structure during the contract term, this offer and the amount of discount on a percentage basis should be provided with the proposal submittal. 8. Contractor Invoices The Contractor may deliver either a monthly invoice to the City with attached copies of detailed invoices as supporting detail, or one lump-sum upon completion. 9. Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail Proposal Submittal Form, as well as any supplemental items, from other vendors during the contract term. 10. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog numbers used in the specifications are for the purpose of describing and establishing general Item 11 Packet Page 70 Page | 11 quality levels. Such references are not intended to be restrictive. Proposals will be considered for any brand that meets or exceeds the quality of the specifications given for any item. In the event an alternate brand name is proposed, supplemental documentation shall be provided demonstrating that the alternate brand name meets or exceeds the requirements specified herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer, and the City shall be the sole judge in making this determination. 11. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis Obispo by the successful proposer and received by the City within 90 days after authorization to proceed by the City. 12. Start and Completion of Work. Work on this project shall begin immediately after contract execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated with City by mutual agreement. 13. Change in Work. The City reserves the right to change quantities of any item after contract award. If the total quantity of any changed item varies by 25% or less, there shall be no change in the agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of 25% shall be subject to negotiation with the Contractor. 14. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package. 15. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the RFP package. I. PROPOSAL CONTENT Proposals must, at a minimum, contain the information listed below, and may include any other information that the candidate feels will facilitate the City’s consideration. 1. Cover Letter. Please include a cover letter which includes your interest in administering the City of San Luis Obispo’s BMR Program and any other information that you would like to highlight. (MAXIMUM OF ONE PAGE) 2. Qualifications. Describe your firm’s experience and qualifications to administer San Luis Obispo’s BMR Program, including processing Resale Restriction Agreements and Deeds of Trust; loan subordination and payoff transactions; compliance monitoring and certification; transfers and defaults. Include a list of jurisdictions for which you provide similar services. Provide an example of your experience in dealing with compliance issues (i.e., steps taken, outcome, etc.). (MAXIMUM OF THREE PAGES) 3. Program Administration. Provide a detailed discussion of how your firm will implement and administer the BMR Program, including the protocol your firm will use for each of the tasks identified in the Scope of Services. Include a description of the anticipated interaction between your firm, the City, and BMR clients. Include an organizational chart which identifies the primary Item 11 Packet Page 71 Page | 12 role of each team member (e.g., BMR inquiries, document preparation, monitoring, etc.). (MAXIMUM OF SIX PAGES, NOT INCLUDING EXAMPLES) a. Provide example documents used to perform annual monitoring of both rental and ownership units. b. Provide example application forms (pre-qualification, etc.) and helpful documents (e.g., FAQs, process, etc.) that an applicant would access on the dedicated webpage that would be set up for Gilroy’s BMR program. 4. Cost. a. Submit in a separate sealed envelope a cost estimate for each task in the Scope of Services (e.g., fixed fee for basic services, fee per transaction / sale). See attachment for example. b. Include any other costs associated with administering the BMR program. c. Include the estimated hours for each staff member assigned to each task, including the associated cost and hourly rate. d. Include a not-to-exceed amount that would be contained in a potential agreement with the City. e. Hourly rates may be used for pricing the cost of additional services (beyond the scope of services), as needed. 5. Additional Information. Provide general suggestions regarding the City’s BMR program or the requested scope of services. For example, provide suggestions on how the City might improve San Luis Obispo’s BMR program or finance the BMR Administrator contract through a self-sustaining fee structure, etc. 6. Identify Key Staff. Provide a resume for the BMR Program Manager, main point of contact, and any other key staff who will be involved in the day-to-day administration of the City’s BMR program (e.g., interacting with applicants and city staff, preparing and recording legal documents, submitting reports, etc.). 7. References. Include the name, address, phone number, and email for a minimum of three (3) references for which you administer their affordable housing program. 8. Insurance Coverage. Provide a statement verifying that your firm meets the insurance requirements contained in Attachment A, Article 5, Section D. Identify carriers, A.M. Best ratings, types, and limits of insurance carried by your firm. 9. Terminated Contracts/Litigation. Please provide a list of contracts/agreements terminated for convenience or default within the past three years, if any. List any litigation that now affects or may affect the firm’s ability to perform work in the future. Item 11 Packet Page 72 Page | 13 10. Language Capabilities. Please describe your capacity to serve Spanish speaking clients in both written and speaking form. J. PROPOSAL REVIEW 1. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award: ACTIVITY CONSULTANT CITY SCHEDULE RFP sent to qualified consultants/Legal Ad X May 12, 2021 Pre-Proposal Conference (optional) X X May 26, 2021 Responses due X June 4, 2021 City response to consultants regarding whether submittal will be considered through subsequent interview X June 11, 2021 Interview consultants (If needed) X X June 21 – 24, 2021 Consultant selection and contract execution X July 9, 2021 Initial kick-off meeting with staff team X X July 19 – 22, 2021 Internal Organization of Materials and Duties X July 19 – August 6, 2021 Transfer of Materials to Consultant X X August 9 - 13, 2021 Consultant Will Commence Administration X August 16, 2021 2. Pre-Proposal Conference. An optional pre-proposal conference will be held at the following location, date, and time to answer any questions that prospective bidders may have regarding this RFP: May, 26, 2021 at 1:00 p.m. Via Teleconference (teleconferencing details TBD) 3. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City and shall be delivered to the City upon demand. 4. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by, or assembled by the Contractor as part of the work or services under these specifications shall be the property of the City and shall not be made available to any individual or organization by the Contractor without the prior written approval of the City. 5. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Contractor is required to furnish in limited quantities as part of the work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 6. Required Deliverable Products. The Contractor will be required to provide: Item 11 Packet Page 73 Page | 14 a. One electronic submission - digital-ready original .pdf of all final documents. If you wish to file a paper copy, please submit in sealed envelope to the address provided in the RFP. b. Corresponding computer files compatible with the following programs whenever possible unless otherwise directed by the project manager: Word Processing: MS Word Spreadsheets: MS Excel Desktop Publishing: InDesign Virtual Models: Sketch Up Digital Maps: Geodatabase shape files in State Plan Coordinate System as specified by City GIS staff c. City staff will review any documents or materials provided by the Contractor and, where necessary, the Contractor will be required to respond to staff comments and make such changes as deemed appropriate. ALTERNATIVE PROPOSALS 7. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternative and discuss under what circumstances the City would prefer one alternative to the other(s). 8. Attendance at Meetings and Hearings. As part of the work scope and included in the contract price is attendance by the Contractor at up to [number] public meetings to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing work-scope tasks. 9. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatemen ts or omissions in the plans and specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal. Item 11 Packet Page 74 Page | 15 To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful bidder to achieve the project’s objective or standard beyond the amounts provided there for in the proposal. In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of contractor's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute. K. FORM OF AGREEMENT AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [day, date, year] by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [CONTRACTOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, on [date], City requested proposals for [______________], per Project No. [xxxx] WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said project; NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until acceptance or completion of said project. Item 11 Packet Page 75 Page | 16 2. INCORPORATION BY REFERENCE. City Specification No. ______ and Contractor's proposal dated [date] is hereby incorporated in and made a part of this Agreement and attached as Exhibit A. The City’s terms and conditions are hereby incorporated in an made a part of this Agreement as Exhibit B. To the extent that there are any conflicts between the Contractor’s fees and scope of work and the City’s terms and conditions, the City’s terms and conditions shall prevail, unless specifically agreed otherwise in writing signed by both parties. 3. CITY'S OBLIGATIONS. For providing the services as specified in this Agreement, City will pay, and Contractor shall receive therefore compensation [xxxxxxx]. If there are installment payments? Contractor shall be eligible for compensation installments after completion of milestone Tasks -E as shown in the attached project schedule. 4. CONTRACTOR/CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by this Agreement and the said specifications. 5. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager. 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City Name Dept. Address Consultant Name Title Address Address Item 11 Packet Page 76 Page | 17 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that everyone executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be execu ted the day and year first above written. CITY OF SAN LUIS OBISPO: By: _____________________________________ City Manager APPROVED AS TO FORM: CONSULTANT: ________________________________ By: _____________________________________ City Attorney Name of CAO / President Its: CAO / President L. INSURANCE REQUIREMENTS Operation & Maintenance Contracts The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, Item 11 Packet Page 77 Page | 18 either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. M. PROPOSAL SUBMITTAL FORM – SAMPLE Item 11 Packet Page 78 Page | 19 A complete proposal must include the forms in this section plus the required insurance certificate. THESE REQUIRED PROPOSAL DOCUMENTS SHALL BE ENCLOSED IN TWO SEPARATE SEALED ENVELOPES. The first envelope shall be labeled “Qualification Proposal” and shall include the following proposal documents completed in full: 1. Information about the Proposing Firm 2. References 3. Statement of Past Contract Disqualifications 4. Insurance Certificate The second envelope shall be labeled “Price Proposal” and shall include the Price Proposal form. These envelopes shall be enclosed in a larger envelope that shall be sealed and addressed to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA 93401. In order to guard against premature opening, the larger envelope should be clearly labeled with the proposal title, specification number, and name of the proposing firm. INFORMATION ABOUT THE PROPOSER Firm Name Mailing Address City, State, ZIP Phone Number FAX Number Business Type (proprietorship/partnership/corporation) Years Operating under this Firm Name Item 11 Packet Page 79 Page | 20 Insurance Company’s A.M. Best Rating Authorized Representative Title of Authorized Representative Signature of Authorized Representative and Date Item 11 Packet Page 80 Page | 21 REFERENCES Number of years engaged in providing the services included within the scope of the specifications under the present business name: . Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if requi red. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1: Agency Name Contact Name Telephone & Email Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 2: Agency Name Contact Name Telephone & Email Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Item 11 Packet Page 81 Page | 22 Reference No. 3 Agency Name Contact Name Telephone & Email Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome CURRENT CONTRACTS: 1. 2. 3. 4. Item 11 Packet Page 82 Page | 23 STATEMENT OF PAST CONTRACT DISQUALIFICATIONS The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or f or any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances. ◼ Do you have any disqualification as described in the above paragraph to declare? Yes ❑ No ❑ ◼ If yes, explain the circumstances. Executed on at _______________________________________ under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. ______________________________________ Signature of Authorized Proposer Representative Item 11 Packet Page 83 Page | 24 PRICE PROPOSAL Item 11 Packet Page 84 Department Name: Public Works Cost Center: 5006 For Agenda of: May 5, 2021 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Brian Rodriguez, Engineer II SUBJECT: AUTHORIZATION TO ADVERTISE 2021 DOWNTOWN PAVEMENT IMPROVEMENTS PROJECT, SPECIFICATION NO. 1000167 RECOMMENDATION 1. Approve the project plans (Attachment A) and specifications (Attachment B) for the 2021 Downtown Pavement Improvements Project, Specification No. 1000167 (Project); and 2. Authorize staff to advertise for bids; and 3. Authorize the City Manager to award the construction contract including the Base Bid and any Additive Alternates if the lowest responsible bid is within the Publicly Disclosed Funding Amount of $3,400,000 and the funding amount is consistent with the adopted 2021- 22 budget appropriation for this project; and 4. Authorize the City Engineer to approve Contract Change Orders up to available project budget of $4,233,095 REPORT-IN-BRIEF Following the City of San Luis Obispo’s (City) Pavement Maintenance Plan (Pavement Plan), staff is requesting authorization to advertise a pavement improvement project for construction. The project will provide pavement maintenance and striping improvements to the streets shown in Figure 1 on the following page and the attached vicinity map (Attachment C). Pavement maintenance projects often involve complete removal and replacement of roadway striping and pavement markings, which provides excellent opportunities to incorporate planned safety and complete street1 improvements as part of these larger roadway maintenance efforts. The 2021 Project will implement several complete street modifications envisioned for Marsh and Higuera Streets in the City’s Downtown Concept Plan and the recently adopted Active Transportation Plan to improve downtown safety and mobility for all road users. These strategies include design elements intended to improve pedestrian crossing safety, increase separation between bicyclists and motor vehicle traffic, and calm traffic and reduce speeds through the downtown. Staff is requesting that funding be appropriated in the upcoming 2021-23 Financial Plan to complete this project. 1 A complete street is a transportation facility that is planned, designed, operated, and maintained to provide safe mobility for all users, including bicyclists, pedestrians, transit vehicles, truckers, and motorists, appropriate to the function and context of the facility. Item 12 Packet Page 85 Background On April 14, 1998, the City Council adopted the City’s Pavement Plan. In 2009, the Pavement Plan was updated to provide additional emphasis on arterial streets. A key element of the Pavement Plan is a rotating and methodical approach to ensuring all areas of the City receive regular preventative and/or corrective paving maintenance. The City implements this rotation by performing maintenance in two neighborhood Pavement Areas in one year, and then focusing on arterial street work in the second year, thereby alternating between neighborhood areas and arterials biennially. Last summer, streets maintenance funding was used for local neighborhood streets in Pavement Areas 4 and 5 (Attachment D), which included roadway sealing and striping enhancements. Improvements to both pedestrian and bicycle access in the form of curb ramps, buffered bike lanes, and addition of two new neighborhood greenways were also completed. 2021 Downtown Pavement Improvements Project This year, the pavement maintenance work is planned for the following streets, as shown visually in Figure 1 below: a. Higuera Street (Marsh to Nipomo and Santa Rosa to Pepper) b. Marsh Street (Higuera to Nipomo and Santa Rosa to California) c. Nipomo Street (Buchon to Leff) d. Johnson Street (Mill to Phillips) e. Phillips Lane (Johnson to Pepper) f. Pepper Street (Phillips to Mill) Figure 1: Project Vicinity Map Item 12 Packet Page 86 It is important to note that while work on segments of Higuera and Marsh outside of the downtown core is planned to proceed this upcoming summer and fall (2021), segments within the downtown core (between Nipomo and Santa Rosa) are planned to be deferred until summer/fall of 2022. This schedule is proposed to avoid the deconstruction of many recently installed parklets within the downtown core and to reduce potential disruption to activities within the core of the downtown where auto traffic, pedestrian activity, and on-street parking demand are highest. This will also provide time for planning and engagement with businesses and the community to determine viability and methods for implementation of a long term parklet program and not interrupt economic recovery following the pandemic. Pavement Reconstruction and Maintenance A pavement investigation was completed (November 2020), which confirmed that Nipomo Street and Johnson/Philips/Pepper were in a failing condition and structurally deficient to carry current traffic loading, including frequent heavy transit bus traffic on Johnson/Philips/Pepper for which the original pavement was not designed. These pavement areas have moderate to severe cracking, rutting in wheel-paths, potholes, and have reached the end of their useful life. Full depth replacement is necessary to bring the pavement to new condition and eliminate the need for more frequent smaller maintenance repairs that would be ineffective in the long term. This selected method of reconstruction is the most cost effective, with an expected service life of 15- 20 years. The old pavement removed from the roadway will be recycled by the receiving aggregate plants for future recycled asphalt pavement (RAP) in other pavement projects. The majority of Marsh and Higuera asphalt pavement is underlaid by concrete, creating a solid foundation. This pavement structure is acceptable, however, the pavement on Marsh and Higuera from Nipomo to the intersection of Marsh and Higuera is deteriorated and failing due to age and wear. This pavement will be removed and replaced to create a new smooth driving surface. On Marsh and Higuera East of Santa Rosa, pavement maintenance will include installation of a slurry seal coat. Slurry seal is a cost-effective treatment that extends pavement life up to 8 years and prevents more expensive maintenance work in the future. Applied as a thin pavement sealant, it shields the pavement beneath from ultraviolet damage, minimizes water intrusion, and provides a new wearing surface for vehicles. This preventative maintenance treatment is less costly than asphalt replacement. In advance of this year’s paving project, the City’s Street Maintenance team has completed crack sealing treatment and spot repairs on Higuera Street (Pepper to Santa Rosa) and Marsh Street (California to Santa Rosa). This preparatory work increases the long-term effectiveness of the planned roadway slurry seal coat installation and reduces overall construction costs. In addition to roadway maintenance, this project will upgrade curb ramps to current ADA and City standards, as well as replace roadway striping and pavement markings, which provides an excellent opportunity to implement several complete street improvements as identified in the City’s Traffic Safety Report, Active Transportation Plan and Downtown Concept Plan. These complete street improvements, which are described in more detail in the section below, will support the City’s 2021-23 Major City Goal of Climate Action, Open Space and Sustainable Transportation, as well as the City’s mode shift targets and Vision Zero goal to eliminate traffic- related fatalities and severe injuries citywide. Item 12 Packet Page 87 Complete Street Design Elements The Project includes the following complete streets elements along Marsh and Higuera Streets, which are intended to improve mobility and safety for all road users. Note that the summary below describes the design elements proposed for the full extent of Marsh and Higuera Streets, including the segments between Santa Rosa and Nipomo Streets within the downtown core, which are not planned for implementation until 2022. Staff will be conducting additional community outreach for the segments within the downtown core and the Council will have the opportunity to review and approve those designs when staff returns with a request to advertise the 2022 Paving Improvements Project for construction next spring. a. Auto Lane Reductions – Reduce the number of auto lanes on Marsh and Higuera Streets from three to two, as envisioned in the Downtown Concept Plan and Active Transportation Plan, and as currently exists on Higuera Street between Santa Rosa and Nipomo as an Open SLO pilot installation. Current plans also propose reducing the segment of Higuera from Johnson to Toro Street from two to one lane to provide width for dedicated bike lanes, similar to recent modifications to Pismo Street south of the downtown. (See Figure 2 below for lane reduction locations). Lane reductions, also referred to as “road diets” provide an opportunity to “right-size” oversized roadways to accommodate the actual auto traffic demand required, which provides the benefit of reducing illegal speeding and freeing up additional road space for other features, such as bike lanes, future sidewalk widening, or parking/parklets. Lane reductions also shorten pedestrian crossing distances and the number of conflict points at crosswalks, which improves the pedestrian crossing experience and safety. A Transportation Impact Study was prepared to evaluate potential traffic impacts associated with these lane reductions. The traffic study concluded that these modifications would retain sufficient traffic capacity to accommodate existing and future auto traffic volumes, while preserving width for existing on-street parking and flexibility to retain parklets if the Council decides to extend the City’s pilot parklet installations beyond the current pilot program. Attachment E provides a visual summary of the existing and future roadway capacity and auto traffic demand on Marsh and Higuer a Streets with and without the proposed lane reductions. Attachment F includes the comprehensive Transportation Impact Study prepared for the project. b. Curb Ramps – Upgrade pedestrian curb ramps to current ADA standards at several locations. (see Figure 2 below). c. Accessible On-Street Parking – Provide additional ADA on-street parking at multiple locations. Six new ADA on-street parking stalls will be added as part of the 2021 plans and approximately 5 will be added in 2022. Item 12 Packet Page 88 d. Pedestrian Crossing Upgrades – Installation of high-visibility “ladder- style” marked crosswalks at several intersections, and addition of push-button flashing beacon systems (RRFBs) at several pedestrian crossings, such as Higuera/Beach (new crossing), Marsh/Toro (existing crossing) and Higuera/Johnson (new crossing). A new crossing at Marsh/Beach was evaluated extensively, but ultimately is not feasible at this time due to significant constraints. While this crossing is still desired in the future and will be considered as part of subsequent planning efforts, it will not be installed as part of this project. Upon request from the Active Transportation Committee, staff will also be investigating the feasibility of adding a pedestrian crossing to the north leg of the Santa Rosa/Marsh intersection. This evaluation will be done during the design phase for the 2022 paving project plans and will be incorporated into the 2022 paving project, if feasible. e. Protected Bike Lanes – Install protected bike lanes (“cycle tracks”) along most of Higuera and Marsh Streets within the project limits, as identified in the Downtown Concept Plan and Active Transportation Plan. Current plans for physical bikeway separation include installation of concrete medians and landscaped planter boxes. Note that the planter boxes will be installed via a separate landscaping contract following the completion of the Downtown Paving Project. f. Buffered Bike Lanes – Provide striped bike lane buffers (no physical barriers) where protected bike lanes are infeasible without significant parking removal, or due to and conflicts with bus stops, downtown delivery staging, Farmer’s Market operations and/or fire access. g. Green Bike Lane Markings – Install green bike lane markings at higher-volume driveways and through intersection crossings to increase visibility of bicycle-vehicle conflict areas. Application of green bike lane coloring throughout the length of the buffered bike lane on Higuera between Santa Rosa and Nipomo is being considered as part of the 2022 pavement project to add additional awareness of the bike lane and to help address concerns with vehicles illegally blocking the bike lane for commercial and/or passenger loading. Figure 2 on the next page illustrates the locations of complete street improvements within the project extent, including both the 2021 and 2022 paving areas. A larger copy of this map is provided in Attachment G. Typical street cross section illustrations of each segment are provided in Attachment H. Item 12 Packet Page 89 Figure 2: Downtown Complete Street Elements Considered On-Street Parking and Parklets The design approach for the Downtown Paving Project intentionally focuses on minimizing loss of on-street parking, opting to reduce auto lanes to accomplish multimodal goals in lieu of wholesale street parking removal. Currently, many of the on-street parking spaces do not meet current City Standards for on-street parking or sight visibility at intersections. Therefore, there are locations throughout the corridor where on-street parking spaces will be removed. These reductions in parking are necessary regardless of changes to the street configuration. While approximately 93% of existing parking is to remain, approximately 35 spaces are proposed to be removed. Attachment I shows the approximate location and number of spaces to be removed. The current design does not preclude retaining the vast majority of existing parklets if Council decides to retain parklets beyond the temporary Open SLO pilot program. The only exception is the temporary parklet on Higuera near the Creamery, which was installed for Mistura and conflicts with the proposed project designs. Mistura has used this parklet sparingly and have additional outdoor dining space on-site within their patio. This parklet is planned for removal towards the end of summer prior to the paving work. It should be noted, the project concept is not proposing protected bike lanes at this time, as called for per the Active Transportation Plan, on Higuera between Santa Rosa and Nipomo and on Marsh east of Johnson Street. The widths of these segments do not accommodate protected bike lanes without the elimination of on-street parking (approximately 75 spaces). Staff proposes to revisit these segments at a future time—most likely after completion of the Palm/Nipomo Parking Structure and/or following a more focused Safe Routes to School Plan for San Luis High School. Equity Considerations As currently proposed, this project supports the equity goals and policies of the Active Transportation Plan as follows: a. The project is located within the area of the city officially designated by the state as a “Low-Income Community” per State Assembly Bill (AB) 1550, which reflects proximity to the neighborhoods in the northern half of San Luis Obispo, which statistically includes higher concentrations of lower-income, and often student-occupied, households. Item 12 Packet Page 90 b. The proposed improvements directly improve access to lower-cost transportation options, such as walking and bicycling, and indirectly improves first/last mile connectivity to the Downtown Transit Center. This is particularly important within the downtown, where many lower-income service workers would benefit from improved transportation options that do not require owning or using an automobile. c. The proposed improvements include several specific strategies to improve access for those with mobility challenges, including ADA curb ramp upgrades, some sidewalk repairs, and the addition of several new on-street parking stalls reserved for disabled persons. Benefits to Downtown Vitality & Street scape Aesthetics Where feasible, staff endeavors to incorporate design elements that not only serve a functional purpose but add to the vibrant downtown environment. For example, staff is pursuing aesthetically appealing options for the physical buffer separating the protected bike lanes from vehicular traffic in lieu of plastic flex posts or other less visually appealing features. The current design approach includes use of concrete medians with “Mission Style” concrete color/finish, and addition of planter boxes within these medians where feasible, similar to those installed in cities like Vancouver and Seattle (see photo below for example). Where on-street parking exists adjacent to protected bike lanes, planter boxes would be located to retain access for passengers accessing their vehicles. Installation and maintenance of the planter boxes will be secured under a separate contract immediately following the complete installation of the medians. Example of Protected Bike Lanes with Landscaped Planter Boxes (Vancouver, BC) In addition, providing a fresh and smooth surface creates the perfect canvas for future street art installations, which can be explored following the roadway sealing project as part of the City’s Public Art Program. Economic Recovery and Downtown Business Considerations As the designs have developed, and through the public engagement activities described further in this report, staff has received initial feedback from residents, visitors, and businesses in the downtown. Item 12 Packet Page 91 One of the questions/concerns raised during the project planning process relates to the timing of this project and the effects it can have on downtown businesses as they hope to continue recovering from the impacts of the COVID-19 pandemic. Based on discussions with the downtown community, strategies proposed by staff to minimize potential disruption to downtown road users and businesses during construction activities for both 2021 and 2022 paving efforts include: a. Deferring start of any disruptive construction activities along Marsh or Higuera Streets until September 1st, avoiding the peak of the summer tourist season. b. Where feasible, scheduling working hours outside of peak weekday business hours, including a goal to maintain two lanes of traffic on Marsh and Higuera between 10 a.m. and 6:00 p.m. as much as possible. c. Advance noticing to adjacent businesses and residents prior to start of construction to provide project details, schedule and contact information for questions and project updates. d. Regular (weekly or bi-weekly) construction updates to notify the community of upcoming project activities and schedules. Previous Council or Advisory Body Action Council Adopted the Active Transportation Plan on February 2, 2021. Policy Context The project directly supports several key City plans, policies and goals. The complete street components of the project support the recommendations of the Downtown Concept Plan and Active Transportation Plan—with installation of protected bike lanes and priority pedestrian/bicycle crossing s along Marsh and Higuera Streets identified as Tier 1 (highest- priority) projects in the Active Transportation Plan. The improvements also indirectly support the General Plan mode share targets and recommendations of the City’s Climate Action Plan for Community Recovery to improve active transportation and reduce reliance on single-occupant vehicles. The project also supports the current Sustainable Transportation and Climate Action Major City Goals, as well as the current Meta Goal for Economic Stability, Recovery and Resiliency, which includes a strategy to continue implementation of shovel-ready capital projects (particularly infrastructure maintenance). Consistent with the October 2018 Purchasing Policy Update to the July 2015 Financial Management Manual, Council must approve the request to proceed with this project, as approval is required for Public Projects that cost over $175,000. Public Engagement 1. The public outreach process conducted for the City’s recently adopted Active Transportation Plan took place over more than two years from 2018-2021 and guided complete street recommendations proposed within the 2021 paving project. 2. On January 11, 2021 a virtual meeting was held with the Downtown SLO Response and Recovery Board Meeting. 3. On February 4, 2021, Transportation staff had a virtual meeting with SLO Transit and the Regional Transit Authority (RTA) to review the project components and timeline. Item 12 Packet Page 92 4. On February 25, 2021 a community-wide virtual workshop was held to inform the public of the project and its scope and to request input on proposed designs, focusing largely on the Higuera and Marsh Street elements proposed within the downtown area. Notification of the event consisted of an advertisement in The New Times, social media posts, sandwich boards posted and rotated throughout the downtown and e-notification distribution including Downtown SLO and Bike SLO County’s memberships. Approximately 15-20 people attended and actively participated using this virtual style of public meeting. 5. On Saturday, March 6, 2021 a “Pop-Up” Style Virtual Presentation was held to provide an option for community members to attend outside of a typical weekday evening meeting format. Unfortunately, there was no community participation in this event. 6. An informational web page (http://www.slocity.org/downtownpavingproject) was created to provide background and updates on the different project elements. The webpage also provides opportunities for the public to leave direct feedback on the project via comment boxes. The intent is that the webpage can continue to be used as a tool to provide information for the public throughout the construction of the project. 7. An interactive web-based map was also created allowing the public to leave comments directly on a map of the downtown project and proposed design elements. Example of Remix Mapping/Comment Tool CONCURRENCE This project has been reviewed and has concurrence from the Utilities, Fire, and Community Development Departments. The Active Transportation Committee has reviewed the proposed pedestrian and cyclist improvements and provided its recommendation to Council to proceed with implementation of the project. Item 12 Packet Page 93 It should be noted that the Active Transportation Committee recommended retaining the existing striped bike lanes on both sides of the street along Marsh Street east of Johnson Avenue in lieu of staff’s initial proposal to provide a protected bike lane in the eastbound direction and shared lane in the westbound direction. Considering the traffic volumes and speeds along this segment of Marsh Street, the Committee preferred retaining a dedicated bike lane in each direction, even if that left insufficient street width to install physical bike lane separation in either direction. This recommendation is reflected in the final plans proposed for implementation. ENVIRONMENTAL REVIEW This project is categorically exempt from environmental review pursuant to section 15301 of the CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement project. A Notice of Exemption will be filed through the Community Development Department. The complete street elements are consistent with the Land Use and Circulation Element as well as the Active Transportation Plan, therefore consistent with the environmental review of those documents. In addition, the types of complete street improvements proposed as part of this Project would all be considered categorically exempt from CEQA in the category of Existing Facilities, maintenance activities. Therefore, no additional environmental review is triggered. FISCAL IMPACT Budgeted: Proposed in FY21/23 Financial Plan Budget Year: 2021-22 Funding Identified: Yes Fiscal Analysis: Approval to Bid with Final Project Funding Dependent on Budget Adoption for 2021-22. In order to allow for project implementation during the summer months, and to lessen impacts to the traveling public, staff is requesting permission to advertise the project for construction prior to the new fiscal year. However, the construction contract will not be awarded until after the 2021-23 Financial Plan has been adopted by the Council and work will not begin until the budget appropriation is made available. The project is structured with a Base Bid and two Additive Alternatives to maximize the scope of the pavement replacement project within the available funding. The strategy is to award the contract with the Base Bid and as many of the Additive Alternatives as funding will allow, up to the Publicly Disclosed Funding amount of $3,400,000 in compliance with Public Contract Code Section 20103.8C. The Base Bid portion includes Higuera and Marsh from Nipomo to where they intersect, Higuera and Marsh from Santa Rosa to the eastern limits, and Nipomo from Buchon to Leff. The additive alternatives include additional asphalt removal and replacement along Johnson from Mill to Phillips, Phillips from Johnson to Pepper, and Pepper from Phillips to Mill. Item 12 Packet Page 94 There is currently a remaining balance of $216,781 in the 2020 Roadway Sealing (1000114) account, $46,565 in Water funds, $41,550 in Sewer funds, and $80,000 in the Bicycle/Pedestrian Quick Build Project (1000162) account, which are proposed to be used to support the 2021 Downtown Pavement Improvements Project. This brings the current available balance to $384,896. Additional funding of $3,848,109 is proposed in the 2021-23 Financial Plan to provide adequate funding for this project. The new funding is proposed via a combination of two capital project, Water, and Sewer funds request in the 2021-23 Financial Plan: $3,513,199 for the Street Reconstruction and Resurfacing project, $200,000 for the Active Transportation Plan Implementation project, $50,000 for Water funds, and $85,000 for Sewer funds. If the 2021-22 budget is adopted as proposed, the additional funding will be available July 1, 2021, bringing the total available project funding balance to $4,233,095. Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $2,894,752 State Gas Tax SB1 $835,228 Federal Fees Other: $503,115 Total $4,233,095 LRM Fund, Capital Outlay Fund State Gas Tax SB1 LRM Fund Capital Outlay Fund Water Fund Sewer Fund Construction Estimate $1,757,794 $835,228 $173,913 $69,565 $84,000 $34,500 $2,955,000 Contingencies (15%)$388,988 $26,087 $10,435 $12,565 $5,175 $443,250 Total Construction Estimate $2,146,782 $835,228 $200,000 $80,000 $96,565 $39,675 $3,398,250 Construction Management:$200,000 $200,000 Materials Testing:$20,000 $20,000 Printing & Advertising:$2,000 $2,000 Public Relations $15,000 $15,000 Total Project Estimate $2,383,782 $835,228 $200,000 $80,000 $96,565 $39,675 $3,635,250 Available Project Balance:$0 $0 $0 $80,000 $46,565 $41,550 $168,115 Remaining from 1000114 Roadway Sealing $216,781 $216,781 Financial Plan Funding Available after 7/1/2021 $2,677,971 $835,228 $200,000 $0 $50,000 $85,000 $3,848,199 Total Funding After 7/1/2021:$2,894,752 $835,228 $200,000 $80,000 $96,565 $126,550 $4,233,095 Planter Box Landscaping and Maintenance (Separate from Paving Contract)$75,000 $75,000 Publically Disclosed Funding Amount $3,400,000 ESTIMATED PROJECT COST BY FUNDING SOURCES 2021 Downtown Pavement Improvements Project, Specification No. 1000167 2021-23 Active Transportation Plan Implementation Bicycle/Pedestrian Quick Build Projects (1000162) Sewer MH Cover Adjustments Project Total Costs Water Valve Cover Adjustments Street R&R Master Account (90346) Item 12 Packet Page 95 ALTERNATIVES 1. Deny Authorization to advertise. The City Council may choose not to authorize project advertisement prior to consideration of the 2021-21 budget review and approval. Staff does not recommend this alternative because this is the ideal time to advertise paving projects for summer construction. 2. Continue with the 2021 Downtown Paving Project but defer 2022 downtown core paving to 2023. The City Council may choose to continue with the paving work planned for 2021, but direct staff to defer paving work within the downtown core (Higuera and Marsh Streets between Nipomo and Santa Rosa) from 2022 to 2023. This would provide additional time for the City Council to weigh in on long-term plans for downtown parklets and provide additional opportunities for downtown circulation and commerce activity to normalize following disruptions in recent years related to construction of two large hotels, the Marsh Street Bridge Replacement Project and ongoing impacts associated with the COVID -19 pandemic. Attachments: a - COUNCIL READING FILE - Spec No. 1000167 Project Plans b - COUNCIL READING FILE - Spec No. 1000167 Specifications c - Spec No. 1000167 Vicinity Map d - Pavement Areas e - Volume Capacity Charts f - COUNCIL READING FILE - Traffic Analysis Report g - Downtown Complete Street Elements Considered h - Typical Street Cross Section Illustrations i - Estimated Changes in On-Street Parking Spaces Item 12 Packet Page 96 2021 DOWNTOWN PAVEMENT IMPROVEMENTS PROJECT VICINITY MAP 1 OF 1 AREA 'A' AREA 'D' Project Locations 0 SCALE IN FEET 1000 AREA 'C' AREA 'B' Item 12 Packet Page 97 SanLuisObispo Cityof PWP U B L I C W O R K S D E P A R T M E N TP U B L I C W O R K S D E P A R T M E N T NOTE:State highways, county roads, private streets, and railroads are not included in the City’s pavement management program. AREASPAVEMENTAREASPAVEMENT CITY OF SAN LUIS OBISPO PAVEMENT AREAS CAL P O L Y CAL P O L Y L A G U N A L A K E L A G U N A L A K E SWANDRESANTA ROSABROADC H O R R OJ OHNSONJ OHNSONELL A LEF F F I XL I N I A U G U S T A JOHNSONCALI FORNIA ROMAULDO FOOTHI LL SERRANO RAMONA CERROP A T R I CIAHI GHLAND M O N T E R E Y S A N L U I S MA R S H HI GUERAM A R G A R I T AELKS HI GU ER A ST REE T M A D O N N A P R A D O L O S O S O S V ALLEYRO Y A L PR E F U M O LOS OSOS VALLEY SOUTH B R I D G E HI GH H I G UER A PA L M PEA C H GRANDS L AC K M I O SSI FREDERI CKS SANTA ROSAMORROOSOSCHORRONI POMOARCHERCARMELBEACHBROADBROADLA U R E LORCUTT ORCUTTTANK F A R M SACRAMENTOTANK F A R M SOUTHWOOD 77 88 11 22 33 55 66 99 44 Item 12 Packet Page 98   Traffic Volume and Capacity Charts Current Daily Volumes (Pre‐COVID) Higuera Street Marsh Street Page 1 of 2 Item 12Packet Page 99   Traffic Volume and Capacity Charts Future Daily Volumes Assumes full buildout of the City’s General Plan Higuera Street Marsh Street Page 2 of 2 Item 12Packet Page 100    Complete Street Elements Considered Item 12Packet Page 101 Downtown Paving 2021 & 2022  Concept Cross Sections     Higuera Pepper to Johnson        Higuera Johnson to Toro          Item 12 Packet Page 102 Higuera Toro to Santa Rosa         Higuera Santa Rosa to Nipomo       Higuera Nipomo to Marsh     Item 12 Packet Page 103 Marsh Johnson to California      Marsh Johnson to Toro       Marsh Toro to Higuera    Item 12 Packet Page 104 Estimated Changes in On-Street Parking Spaces Item 12 Packet Page 105 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 12 Packet Page 106 Department Name: Public Works Cost Center: 5002 For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Hai Nguyen, Engineer III SUBJECT: AUTHORIZATION TO ADVERTISE SINSHEIMER IRRIGATION AND DRAINAGE, SPECIFICATION NO. 91658 RECOMMENDATION 1. Authorize staff to advertise for bids and approve the project plans (Attachment A) and special provisions (Attachment B) for the Sinsheimer Irrigation and Drainage, Specification Number 91658; and 2. Authorize the City Manager to award the construction contract for the bid total if the lowest responsible bid is within the Engineer’s Estimate of $500,000 and the funding amount is consistent with the adopted 2021 -23 budget appropriation for this project. DISCUSSION Background Parks require ongoing maintenance in order to provide users a safe and quality experience. At Sinsheimer Stadium, the irrigation and drainage systems have aged beyond their useful lives and have created regular impacts to the stadium, reducing the quality of the play surface and impacting the public’s ability to utilize the facility. Project Scope Irrigation System Replacement The irrigation system at the Sinsheimer Stadium field (Attachment C) dates from the mid-1960s and is overdue for replacement. The system requires frequent maintenance and does not evenly and efficiently distribute water to the turf. The existing system has 360-degree spray, resulting in the dugouts, backstop, fencing, and infield all being watered, in addition to turf. The replacement system will resolve these issues and provide staff a system which is easier to maintain. The project will install a new irrigation system designed to efficiently distribute water onto the turf with minimal overspray, which in addition to reducing damage to the facility, will save water. Furthermore, a master valve and flow sensor are proposed to provide sophisticated shutdown operation of the system to prevent wasted water if one of the zone valves should leak. Item 13 Packet Page 107 Drainage System Replacement The Sinsheimer Stadium field has an underground drainage system constructed in 1995 to pull excess water from the field. The existing drainage system is failing, and the result is that play must be delayed as the right field remains flooded for several days after rainy weather. The project will replace the sub-surface drainage system and install 4” perforated pipes to convey runoff away from the stadium field. The new drainage system will have more than three times the drainage capacity of the existing system. Cleanouts are also proposed so that regular maintenance can be performed to keep the system at peak performance. COVID-19 Impacts Due to the anticipated economic impacts of COVID-19 in Spring of 2020, the City reevaluated all Capital Improvement Plan projects with the goal of adjusting Capital Expenditures in response to projected revenue shortfalls and aligning the adjusted CIP program with a focus on economic recovery and fiscal responsibility. As a result, this project was deferred with the FY20- 21 Budget Supplement. This project is now recommended to continue as part of the FY21-23 Capital Improvement Plan and 2021-22 budget appropriation. Previous Council or Advisory Body Action This project was originally identified in the 2017-19 Financial Plan that was approved by Council. Subsequently, funding was appropriated in the 19-21 Financial Plan. As stated above, this project was then deferred with the FY20-21 Budget Supplement. Policy Context Per the October 2018 Purchasing Policy Update to the July 2015 Financial Management Manual, Council approval is required for Public Projects that cost over $175,000. Public Engagement Public engagement was done during the initial identification of this project to be included in the 2017-19 Financial Plan. In addition, staff has continued to communicate with SLO Blues baseball team and user groups at the Sinsheimer Stadium field regarding design and construction timelines. CONCURRENCE There is concurrence from Parks and Recreation and Public Works departments with the proposed recommendations outlined in this document. ENVIRONMENTAL REVIEW This project is exempt from environmental review under Section 15301 Class 1 (existing facilities) of the California Environmental Quality Act (CEQA) Guidelines because the project proposes to maintain an existing play facility. The project is consistent with the applicable general plan policies as well as with applicable City Regulations. Item 13 Packet Page 108 FISCAL IMPACT Budgeted: Yes Budget Year: 2021-22 Funding Identified: Yes Fiscal Analysis: Funding Sources FY Cost Annualized On-going Cost Total Project Cost LRM Fund $615,500 $615,500 State Federal Fees Other: Total $615,500 $615,500 201 Fund Construction Estimate $500,000 Contingencies (20%)$100,000 Total for Construction $600,000 Materials Testing $15,000 Printing $500 Total Project Cost $615,500 Current Project Balance:$0 Additional Funding FY21-23 $650,000 Remaining Balance:$34,500 Sinsheimer Irrigation and Drainage, Specification No. 91658 Project Account (91658) Subsurface explorations performed by Earth Systems indicate that serpentine rock formations exist at the project site and is unsuitable to be used as backfill. To cover any additional cost of importing soil and rock excavation, staff is requesting 20% contingencies for this project. There is no funding available in the project account. Additional funding of $650,000 from the Local Revenue Measure Fund is proposed in the 2021-2023 Financial Plan Capital Improvement Plan to provide adequate funding for this project. Staff is recommending this project be approved for advertising in advance of the Budget Adoption for 2021-23. In order to lessen impacts to the user groups at the Sinsheimer Stadium field during the summer months, staff has coordinated with Parks and Recreation and strategically planned construction to start at the end of August 2021 and be completed at the end of October 2021 prior to the rainy season. Item 13 Packet Page 109 If the budget is approved as proposed, the funding will be made available July 1, 2021 to complete this project. If a lower funding level is approved by Council in the 2021-23 Financial Plan, staff may need to adjust the project scope to the approved budget, which will delay the project. ALTERNATIVES Deny authorization to advertise. The City Council may choose not to authorize project advertisement. Staff does not recommend this alternative. Complete irrigation system replacement is needed to improve coverage, efficiency and reduce maintenance on the existing aging irrigation system. Complete drainage system replacement is needed to mitigate flooding and game delays. Attachments: a- COUNCIL READING FILE - Spec No. 91658 Plans b- COUNCIL READING FILE - Spec No. 91658 Specifications c- Project Vicinity Map Item 13 Packet Page 110 SINSHEIMER IRRIGATION AND DRAINAGE 1 OF 1 0 SCALE IN FEET 500 PROJECT LOCATION N VICINITY MAP Item 13 Packet Page 111 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 13 Packet Page 112 Department Name: Parks and Recreation Cost Center: 7003 For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Greg Avakian, Parks and Recreation Director Prepared By: Aleah Bergam, Administrative Analyst SUBJECT: AUTHORIZATION TO RECLASSIFY SIX SUPPLEMENTAL YOUTH SERVICES SITE SPECIALISTS TO SIX FULL-TIME EQUIVALENTS RECOMMENDATION Approve a Resolution (Attachment A) to create six full-time equivalent (FTE) positions due to a reclassification of the Youth Services Site Specialist position. DISCUSSION Background – Youth Services a Community & Council Priority The City of San Luis Obispo provides a wide array of programmatic services for youth including facilities (from parks to Damon Garcia to the SLO Swim Center), contract classes, special events, and before and after school and school break programs. Childcare, via the City’s Youth Services Program, has been a vital component of the City's Meta Goal of Economic Recovery and Resiliency. The Community and Council highly value prioritizing and sustaining Youth Services programming. This can be seen in the Measure G-20 priorities which include maintaining youth services and in the 2021-23 Economic Recovery Major City Goal work plan under 1.2 Business Support, whereby the City will provide childcare programming to the community to enable residents to work and fuel the local economy. Youth services programming also supports the Diversity, Equity and Inclusion Major City Goal through workforce recruitment and retention by serving as a community partner involved in the SLO County Child Care Study. The division will review, evaluate and implement findings from the study as resources permit. The request that is before Council with this Agenda Report is to approve a reclassification of six youth services program employees from limited benefit to full time equivalent immediately to allow for necessary time and recruitment to facilitate summer 2021 programming. Hiring Challenges of the Past for Key Youth Services Positions The recruitment and retention of qualified Youth Services Site Specialists has been a challenge for at least the past five years. Youth Services Site Specialists are responsible for overseeing daily operations for the school age before- and after- school childcare programs (Sun 'N Fun and Club STAR during the school year and school break camps) at an assigned location. They are responsible for the day-to-day management of a childcare site, including staff supervision, engagement with children and families, curriculum planning and implementation, planning enrichment opportunities (guests, trips, events), collaboration with school and community partners, ensuring an equitable and inclusive environment and upholding division standards. Item 14 Packet Page 113 One of the Site Specialists serves in an administrative role and assists the Youth Services Division Supervisor and Coordinator to plan, organize, produce, and coordinate childcare and youth programming. This position works closely with subsidy partners, focuses on staff onboarding, development, and retention, as well as works in the field at childcare sites year- round. Each Site Specialist position is budgeted at 2080 hours per year and receives limited benefits as these staff run a childcare site ensuring licensing standards are met. These staff interact with and build relationships with school staff, families, and community partners. Approximately twenty years ago, the City authorized particular supplemental or temporary positions in Parks and Recreation to receive limited benefits (e.g. contribution s to health coverage and pension, and time off) in an attempt to address then recruitment and retention issues. These positions are referred to as Limited Benefit Temporary (LBT). The current Youth Services Site Specialist positions are LBT positions. LBT positions are eligible for time off and sick leave benefits in addition to what supplemental staff are typically eligible for. These employees are pre-approved positions to be enrolled in CalPERS upon hire and are eligible for personal time off (PTO) benefits. These employees receive paid time off in the amount of 3% of hours worked, up to a maximum accrual of 40 hours, and accrue sick leave with pay at the rate of twelve days per year of continuous service. Limited benefit temporary staff are not eligible for paid holidays as full-time staff are. Also, these employees are Affordable Care Act (ACA) eligible as they are expected to work shifts greater than 30 hours per week or 130 hours per month continuously for at least four months. They are eligible for health insurance, and the contribution is adjusted annually as required by the ACA. Historically, the limited benefit temporary positions were effective in solving the recruitment and retention challenges of the early 2000s and staff were in those positions for more than one year at a time. For the past five years, retaining and recruiting for the six Youth Services Site Specialist positions has been a challenge with multiple vacancies per year and continuous recruitments resulting in limited candidate pools. In analyzing recruitment data for the Site Specialist position in 2019, 719 people viewed the job posting (over a six-month window for two vacancies), and only nine applicants applied (1.3% of individuals who view the position apply). Out of the nine applicants only five were qualified and invited to an interview. Out of the five who were invited to an interview, only three attended an interview. Staff offered the position to two of the applicants and they both accepted, however, one of the new employees quit within weeks due to the demands of the position. Compensation Analysis of Youth Services Supplemental Staff The Human Resources Department conducted a compensation study in January 2020 that illustrated the City’s Youth Services staff salaries were behind the market by approximately twenty-nine percent (29%) and four out of the six benchmark agencies utilized in the compensation study provide full benefits to the Site Specialist position equivalent. Staff made adjustments in the supplemental employee pay schedule in an attempt to address the compensation issue but increased pay has not retained staff at the levels required to effectively run childcare programming. Item 14 Packet Page 114 Over the past five years the division has lost qualified Site Specialists to full -time positions within the City and externally. Currently, the division has only three of the six Site Specialist positions filled with one leaving in June 2021. One of the current Site Specialists has been with the division for almost seven years but the other two have only been in the Site Specialist position for under one year. The COVID-19 pandemic has only exacerbated the recruitment and retention issue due to safety concerns and exposure risks while working with children. As childcare is in high demand within the City and throughout San Luis Obispo County, providing competitive wages and benefits for these key positions is critical for the overall program's quality and consistency. The City’s childcare programs are a critical component in the City’s partn ership with the San Luis Coastal Unified School District (SLCUSD) in support of learning and development. Based on the compensation study results and five-year-long recruitment and retention challenges, cost of turnover, and risk of not being able to provide needed youth services programs due to staffing shortages, staff is recommending reclassifying the Limited Benefit Temporary (LBT) positions into six full-time equivalent (FTE) positions, Five Youth Services Site Director positions and One Youth Services Program Assistant position, with benefits and wages comparable to other regular positions requiring similar skills, abilities, and certifications, as part of the 2021-23 Financial Plan. This recommendation was included in the Significant Operating Budget Changes (SOCBs) that were presented to Council at the April 20, 2021 meeting where Strategic Budget Direction was given by Council. Need to Hire Youth Services Site Director and Program Assistant Positions Early to Operate Summer Programming To appropriately coordinate and operate summer youth programming, which begins June 14, 2021, Parks and Recreation Department staff is requesting “early” approval of the reclassification of six LBT Youth Services Employees to six FTEs, five Youth Services Site Director positions and one Youth Services Program Assistant position, and to begin job posting and recruitment immediately following Council approval on May 5, 2021. Due to an estimated four-to-six-week recruitment window, staff anticipates at the earliest, a start date of June 10, 2021 for new hires. If not approved by this separate action, the request will continue to be part of the budget approval on the June 1 and/or June 15, 2021, Council Meeting(s), with an effective budget appropriation on July 1, 2021 and recruitment and hiring to begin after that date. Staff is presenting this special request now because they are concerned that with a later approval date, and hiring sometime in August at the earliest, that staff would not be able to operate summer programming nor prepare for the 2021-22 school year. For context, in non-pandemic times, the Youth Services Program traditionally begins coordinating summer programming as early as January. However, due to the ongoing changes related to COVID-19 regarding childcare requirements, limited staff availability, and the unknown public health guidance yet to be provided for summer, the team has only been able to keep up with the present childcare needs. It is anticipated that summer programming will continue to be expanded at multiple school sites to accommodate more children in partnership with the District's extended learning programming and comply with County and State health guidelines during the pandemic. Item 14 Packet Page 115 Given the need, early approval from Council allows staff to meet and confer with SLOCEA and advertise and market the positions for a desired June 10, 2021 start date. Staff wants to provide continuity and quality care to the community and families, especially amidst these unprecedented times. Previous Council or Advisory Body Action On April 20, 2021, Council reviewed and preliminarily approved the proposed recommended budget amendments for the 21-23 Financial Plan, which included a list of SOBC’s, one of which was reclassifying the Youth Services Site Specialists into six full-time equivalent positions, eligible for pay and benefits of comparable regular positions and the associated ongoing costs (see Strategic Budget Direction Council Reading File, Section E: Significant Operating Budget Changes, page 71). Policy Context The City's Charter under Section 804 allows City Council to amend or supplement the budget by motion adopted by a majority vote of the council. This request fulfills a Local Revenue Measure G-20 priority which includes maintaining youth services. This request is part of the 2021-23 Economic Recovery Major City Goal work plan under 1.2 Business Support, whereby the City will provide childcare programming to the community to enable residents to work and fuel the local economy. Public Engagement Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. The Youth Services program has consistently maintained lengthy waitlists of children and families due to capacity requirements and staffing ratio guidelines. Families have expressed challenges with the relationships between children and teaching staff when there are staff turnover at the school sites. In addition, Staff have routinely distributed online newsletters and surveys to the community and families have expressed to the Department a need and desire for expanded childcare programming and capacity. CONCURRENCE The City's internal Financial Plan Steering Committee concurs with the recommendation s included in this report. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a "Project" under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2020-2021 Funding Identified: Yes Item 14 Packet Page 116 Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $7,000 $93,227 $100,227 State Federal Fees Other: Total $7,000 $93,227 $100,227 On April 20, 2021, Council reviewed and preliminarily approved the proposed recommended budget amendments for the 21-23 Financial Plan, including reclassifying the Youth Services Site Specialists into full-time equivalent positions and the associated ongoing costs. There will be an approximate fiscal impact of $7,000 from the reclassification and FTE approval for the remaining 20 days of the current fiscal year, which can be accommodated within the Parks and Recreation Department budget. Staff has included the annualized ongoing cost in the preliminary financial plan that will be presented to Council on June 1, 2021. ALTERNATIVES The City Council could direct staff to wait to approve the request at the June 15, 2021 budget adoption meeting. This alternative is not recommended due to the impacts to program start times and current staffing vacancies. Attachments: a - Draft Resolution Item 14 Packet Page 117 R ______ RESOLUTION NO. _____ (2021 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE RECLASSIFICATION OF 6 SUPPLEMENTAL YOUTH SERVICES SITE SPECIALISTS TO 6 FULL- TIME EQUIVALENTS WHEREAS, in accordance with the San Luis Obispo City Charter Section 802, the City Manager submitted the 2020-21 Supplemental Budget to Council for its review and consideration on June 2, 2020; and WHEREAS, the Council approved and appropriated the 2020-21 budget allocation including operating, debt service, and capital improvement plan budget; and WHEREAS, the Youth Services Division has had recruitment challenges regarding recruiting qualified Youth Services Site Specialist positions for at least the past five years; and WHEREAS, a January 2020 compensation study illustrated the City’s Youth Services staff salaries were behind the market by approximately 29%, with many benchmark agencies providing full benefits to the Site Specialist position equivalent; and WHEREAS, adjustments in the supplemental employee schedule has not retained staff at the levels required to effectively run childcare programming; and WHEREAS, the Youth Services division has lost qualified Site Specialists to full-time positions within the City and externally; and WHEREAS, childcare is in high demand within the City and throughout San Luis Obispo County, providing competitive wages and benefits for these key positions are critical for the quality and consistency of the overall program; and WHEREAS, on April 20, 2021 Council reviewed and preliminarily the proposed recommended budget amendments for the 21-23 Financial Plan, which included reclassifying the Youth Services Site Specialists into 6 full-time equivalent positions, eligible for pay and benefits of comparable regular positions and the associated ongoing costs; and WHEREAS, in order to appropriately coordinate and operate summer programming, which begins June 14, 2021, Parks and Recreation Department staff is requesting “early” approval of the reclassification of six LBT Youth Services Employees to six FTEs to begin job posting and recruitment immediately following Council approval. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Item 14 Packet Page 118 Resolution No. _____ (2021 Series) Page 2 R ______ SECTION 1. The 2020-21 budget is hereby amended to adopt six full-time equivalent (FTE) positions as a result of a reclassification of six Limited Benefit Temporary staff to provide quality childcare programming to the community. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2021. ____________________________________ 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, on ____________________________. ____________________________________ Teresa Purrington City Clerk Item 14 Packet Page 119 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 14 Packet Page 120 Department Name: Finance Cost Center: 2001 Administration For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Brigitte Elke, Finance Director SUBJECT: FISCAL YEAR 2021-22 CENTRAL SERVICE COST ALLOCATION PLAN, COST OF SERVICES FEE CALCULATION, AND LABOR RATES RECOMMENDATION Approve the 2021-22 Central Service Cost Allocation Plan including the Cost of Services Allocation and Labor Rates. DISCUSSION Cost Allocation and Reimbursement to the General Fund Consistent with governmental best practices, the City annually prepares a formal Central Service Cost Allocation Plan (CAP). One of the primary uses of the CAP is to quantify in dollars, the relationship between administrative and support services contained within the General Fund and the operations programs they support throughout the City. As such, the CAP provides reimbursement for those services to the General Fund. The CAP can also be used to determine the appropriate amount of administrative and support costs that may be charged to federal and state grants and provides the base for the labor rates used for cost recovery charges. The CAP is prepared using actual operating expenses from the last audited year and the resulting cost allocations are programmed into the City’s budget two years later. Basing the CAP on the audited financials allows the City to avoid the need to recalculate and true-up the allocations at a later date and ensures that the allocation is based on actual cost and not budget assumptions. In this case, the CAP is based on 2019-20 actual cost and the cost allocations are reflected in the 2021-22 proposed budget. Two CAP Documents Required There are two CAP documents presented. The first is a full cost plan which considers all administrative and support costs that are allocated across all programs (Attachment A). The second CAP is the “2 Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” (2 CFR 200) (Attachment B). The 2 CFR 200 supersedes, consolidates, and streamlines requirements from the Office of Management & Budget Circular A-87. The purpose of 2 CFR 200 is to streamline Federal government’s guidance on administrative requirements, costs principles, and audit requirements to more effectively focus Federal resources on improving performance and outcomes, while ensuring the financial integrity of taxpayer dollars in partnership with non-Federal stakeholders. The 2 CFR 200 is used to determine what cost can be allocated to federal grant programs. Item 15 Packet Page 121 The 2 CFR 200 is used to allocate cost to the Transit Fund because it is mainly funded from the Federal Transit Authority. Under the 2 CFR 200, the cost of the City Council are not allocated to other programs. The full cost version of the CAP establishes the allocable costs shown in the table below for the Water, Sewer, Parking and Whale Rock Funds. The amounts shown in the column labeled “Direct Billing Adjustments” represent amounts that offset the CAP-generated cost allocations to the enterprise funds because certain costs can be charged back to the General Fund by the programs that receive allocated costs from the CAP. The cost allocation for the Transit Fund is reflective of the assessment within the 2CFR 200 CAP. 2021-22 Reimbursement Transfers (Full CAP) Fund Cost Allocation Based on 2019-20 Actuals Direct Billing Adjustments Final Billing Water $1,722,409 $0 $1,722,409 Sewer $1,712,752 $0 $1,712,752 Parking $869,887 $0 $869,887 Whale Rock $186,211 $0 $186,211 Total $4,491,259 $0 $4,491,259 2021-22 Reimbursement Transfers (2 CFR 200) Fund Cost Allocation Based on 2019-20 Actuals Direct Billing Adjustments Final Billing Transit $223,324 $0 $223,324 Total $223,324 $0 $223,324 Upon approval by the Council, the 2 CFR 200 certification will be signed by the Finance Director/City Treasurer. Cost of Services Analysis In addition to the Cost Allocation Plan, the City has also prepared a Cost -of-Service analysis, which establishes the annual cost of providing the Water and Sewer Enterprise Funds with access to the City’s right-of way-property, as well as the cost of providing police and fire protection for both funds in accordance with Proposition 218. As part of the fee analysis that was prepared, enterprise facilities that are not within the City limits were excluded from consideration. This document was incorporated into the Cost Allocation Plan as Appendix A. Item 15 Packet Page 122 Water Enterprise 2020-21 2021-22 Public Safety $239,335 $230,214 Right of Way $597,564 $467,983 Total $836,899 $698,197 Sewer Enterprise 2020-21 2021-22 Public Safety $213,358 $223,767 Right of Way $449,746 $357,726 Total $663,104 $581,492 The labor rates applicable for 2021-22 are included in the Cost Allocation Plan as Appendix B. Policy Context The annual cost allocation plan informs the City of the true cost of delivering the services through the various support departments and programs. This forms the base for policies related to cost recovery goals, including reimbursement transfers and labor rates. Public Engagement This cost allocation plan is updated annually based on the City’s audited financials and the annual financial report and adopted at a public meeting of the City Council. CONCURRENCES The Public Works and Utilities Departments have reviewed the CAP and concur with the recommendations contained within this report. ENVIRONMENTAL REVIEW This is not a project under CEQA. The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2021-22 Funding Identified: N/A Item 15 Packet Page 123 Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total N/A The 2021-22 Central Services Full Cost Allocation Plan including Appendix A, net of direct billing adjustments results in a total cost recovery of $5,994,271 in 2021-22, including the Cost of Services reimbursement as outlined in Appendix A. This amount is consistent with the estimate that is shown in the Five-Year Fiscal Forecast. ALTERNATIVES Do not approve the 2021-22 Central Services Full Cost Allocation Plan. This is not recommended as the General Fund would bear the full costs for various programs, contracts, and agreements provided on behalf of the City’s Enterprise Funds. Attachments: a - COUNCIL READING FILE - 2020 Cost Allocation Plan b - COUNCIL READING FILE - 2020 2 CFR Part 200 Cost Allocation Plan Item 15 Packet Page 124 Department Name: Community Services Cost Center: For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Shelly Stanwyck, Assistant City Manager Prepared By: Greg Avakian, Parks and Recreation Director Michael Codron, Community Development Director SUBJECT: ADOPTION OF ORDINANCE 1695 (2021 SERIES) AMENDING THE SAN LUIS OBISPO MUNICIPAL CODE TO ADD CHAPTER 8.10 (SHOPPING CARTS), REQUIRING THE PRIVATE MANAGEMENT OF SHOPPING CARTS AND RETRIEVAL OF CARTS FROM PUBLIC SPACES; AND ORDINANCE 1696 (2021 SERIES) TO AMEND CHAPTER 12.04 (ENCROACHMENTS AND EXCAVATIONS) AND CHAPTER 12.20 (PARK REGULATIONS), TO CLARIFY THAT TENTS AND SIMILAR STRUCTURES ARE PROHIBITED ENCROACHMENTS IN CITY PARKS RECOMMENDATION 1. Adopt the following Ordinances: a. Ordinance 1695 (2021 Series) to add Chapter 8.10 (Attachment A) pertaining to the unauthorized removal of shopping carts from retail establishments and to facilitate retrieval of abandoned shopping carts; and b. Ordinance 1696 (2021 Series) to amend Municipal Code Chapters 12.04 and 12.20 (Attachment B) to add language expressly clarifying that tents and similar structures are prohibited encroachments in City parks. DISCUSSION Background On April 13, 2021, the City Council introduced two ordinances. The fir st related to shopping carts and the second to tents and similar encroachments erected in City parks. The Council discussed both recommendations at length and made specific modifications to the shopping cart ordinance to ensure that the burden of compliance will rest with the cart owner. There were no changes to the tent ordinance, which clarifies the City’s practice and existing rules related to prohibited encroachments in City parks. 1. Summary of Ordinance 1695 (2021 Series) This ordinance adds Chapter 8.10 to the City’s Municipal Code to facilitate the retrieval of abandoned shopping carts in the City of San Luis Obispo and defines “abandoned or unattended shopping cart” as a cart that is “left unattended, discarded or abandoned upon any public or private property other than the Item 16 Packet Page 125 premises from which the shopping cart was removed, regardless of whether such shopping cart was removed from the premises with the authorization or consent of the cart’s owner.” The ordinance places the burden of retrieval on the shopping cart owner by any business to allow or permit the removal of a shopping cart from the owner’s premises. The ordinance establishes requirements for cart containment and retrieval by cart owners, procedures for impoundment of abandoned carts by the City, and recovery from the cart owner of fines and costs incurred by the City. 2. Summary of Ordinance 1696 (2021 Series) This ordinance amends Chapter 12.04 and 12.20 of the City’s Municipal Code to clarify expressly that tents and similar structure are prohibited encroachments in public parks. The purpose of the ordinance is to support the lawful use and access to city parks by all community members consistent with the intended uses and aesthetic qualities of City parks. The ordinance includes a specific definition for tents, which includes any enclosed temporary physical structure that obstructs activities within the structure from public view, excluding canopies and covers that are open on all sides. The ordinance also provides that “Tent” shall not include blankets, towels, mats, portable lawn chairs, unenclosed shade structures not affixed to public property, or similar items for temporary use in conjunction with otherwise lawful park use. Tents erected by express permission of the Parks and Recreation Director in connection with a valid event permit are exempted. Policy Context In collaboration with regional and non-profit service providers, the City supports a variety of special needs and supportive housing developments, including projects that directly reduce the incidence of homelessness in the community. The proposed actions, in conjunction with ongoing programs that support housing for homeless veterans and mentally fragile residents at risk for homelessness, are consistent with the first Goal in the City’s recently adopted Housing Element, which is Safety. Proposed actions are also consistent with Measure G-20, a general-purpose measure with language in the ballot measure including retaining local businesses, keeping public areas clean and safe, and addressing homelessness, and with the City's 2020-21 Meta-Goal of San Luis Obispo's stability, resiliency, and recovery. Public Engagement The focus of public engagement has been to inform, educate, and listen to concerns. The public engagement on the topic of shopping carts has included business community outreach to businesses with shopping carts, the San Luis Obispo Chamber of Commerce and Downtown SLO. SLOPD and others met with managers of large grocers and stores that have shopping carts to explore options to manage and retrieve errant carts. These meetings were productive and did not yield any changes in management or response from surrounding businesses. Item 16 Packet Page 126 Public engagement on tents and other enclosed structures in parks has been a topic of discussion with many members of the public providing both written and verbal directed feedback to staff and Council. Concerns were expressed in relation for the parks to be inclusive, safe, and clean, as well as the general impacts to community use of parks. As noted in this report, the Parks and Recreation Commission will be continue to discus the impacts of various illegal activities adjacent to children’s play areas and this advisory body will in addition to providing a public forum for discussion make recommendation to Council on this topic. CONCURRENCE This report reflects a multi-departmental effort with the City Attorney, Administration, Police, Fire, and Community Services Group including Community Development, Parks and Recreation, Public Works, and Utilities all in concurrence with the recommendation. ENVIRONMENTAL REVIEW Pursuant to the California Environmental Quality Act (CEQA), it can be seen with certainty that there is no possibility that the proposed Municipal Code Amendments regarding the secur ity of shopping carts and tents prohibition will have no effect on the environment (General Rule Exemption CEQA Guidelines Sec. 15061(b)(3). Additionally, the proposed ordinances would be exempt per CEQA Section 15301 Existing Facilities, as there would be negligible or no expansion of use; CEQA Section 15308 Actions by Regulatory Agencies for the Protection of the Environment, as the proposed ordinances are intended to assure the maintenance and protection of the environment; and 15311 Accessory Structures, regarding potential placement of on-premise signage needed for public notification associated with the proposed ordinances. FISCAL IMPACT Budgeted: Yes/No Budget Year: Funding Identified: Yes/No Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Total Item 16 Packet Page 127 The introduction and modification of the two ordinances is not expected to have a measurable fiscal impact to the core services current provided and which would continue. The City is however expending significant General Fund monies toward homelessness solutions and Council will be considering increased expenditures in the next two-year cycle. More specifically, funds for the City’s CAT program and Downtown bicycle officers at $747,285; Ranger Services and Public Works perform illegal and abandoned encampment clean-up and maintenance at $679,000; and annual funding through Grants in Aid and to CAPSLO at $150,000 and $157,000 respectively, total $1,733,285 that is spent annually on homelessness solutions. An additional $300,000 for the Homelessness Response Manager contract position for the next two years and $65,000 for the safe parking program at Railroad Square brings the total to $2,098,285. Should expansion of the CAT program at $85,299, the MCU program at $300,000 and $63,826 in funds to expand bed a 40 Prado Homeless Services Center be approved, the total funds dedicated to homelessness is $2,483,584. ALTERNATIVES 1. Modify the ordinances as proposed. The City Council may modify the ordinances before adoption. Depending on the scope of changes proposed, modification of the ordinances may reintroduction during a subsequent public hearing. 2. Do not adopt the ordinances as proposed. The City Council may choose not to adopt one or both of the ordinances. Staff does not recommend this alternative because the ordinances reflect the direction of a majority of the City Council. Attachments: a - Ordinance 1695 (2021 Series) b - Ordinance 1696 (2021 Series) Item 16 Packet Page 128 O 1695 ORDINANCE NO. 1695 (2021 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 8, HEALTH AND SAFETY, OF THE MUNICIPAL CODE TO ADD CHAPTER 8.10 PERTAINING TO THE UNAUTHORIZED REMOVAL OF SHOPPING CARTS FROM RETAIL ESTABLISHMENTS AND TO FACILITATE RETRIEVAL OF ABANDONED SHOPPING CARTS WHEREAS, The City has a substantial interest in promoting the public health, safety and welfare of its residents, visitors and businesses, and the aesthetic qualities of the City; and WHEREAS, Abandoned or unattended shopping carts off the premises of retail establishments can interfere with pedestrian and vehicle traffic and the use of public streets, sidewalks, public areas, and public rights-of-way, can constitute a hazard to streams, riparian areas and other natural areas, and contribute substantially to litter, clutter and visual blight; and WHEREAS, The purpose of this ordinance is to promote the public health, saf ety and welfare and the aesthetic qualities of the City by regulating and prohibiting the removal of shopping carts from the premises of retail establishments, including designated parking areas, without the authorization or consent of the cart’s owner, and to regulate the retrieval and disposition of abandoned or unattended shopping carts that are found off the premises of retail establishments so as to: 1. Provide for pedestrian and vehicle safety; 2. Ensure that the flow of pedestrian or vehicle traffic, including ingress into or egress from any residence, place of business, street, sidewalk, public area, public right -of- way, or any legally parked or stopped vehicle, is not unreasonably interfered with; 3. Help protect streams, creeks, riparian areas, and other natural areas within the City; and 4. Reduce litter, clutter, and visual blight associated with abandoned or unattended shopping carts. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The Council hereby finds and declares the following: 1. The above recitals are true and correct and are incorporated herein by reference. 2. Abandoned or unattended shopping carts that are found off the premises of retail establishments, on either public property or private property, are hereby declared a public nuisance. SECTION 2. Title 8, Health and Safety, of the Municipal Code is amended to add Chapter 8.10 as follows: Item 16 Packet Page 129 Ordinance No. 1695 (2021 Series) Page 2 O 1695 8.10.010. Authority and Purpose This Chapter is adopted pursuant to Business and Professions Code Sections 22435 through 22435.8 and the City’s general police powers for the purpose of regulating and prohibiting the removal of shopping carts from the premises of retail establishments, including designated parking areas, without the authorization or consent of the shopping cart’s owner, and to regulate the retrieval and disposition of abandoned or unattended shopping carts that are found off the premises of retail establishments. 8.10.020. Applicability This Chapter applies to all businesses located in the City that provide shopping carts for customer use and to all shopping carts on and off the premises of businesses within the City. 8.10.030. Administration The Director is authorized to administer this chapter which includes, without limitation, the ability to promulgate administrative policies and procedures to interpret, implement and enforce this chapter. 8.10.040. Definitions The following definitions apply to the use of these terms for purposes of this chapter: A. “Abandoned or unattended shopping cart” means a shopping cart which is left unattended, discarded or abandoned upon any public or private property other than the premises from which the shopping cart was removed, regardless of whether such shopping cart was removed from the premises with the authorization or consent of the cart’s owner. B. “Director” means the Community Development Director, or their designee. C. “Occurrence” means the retrieval or impoundment by the City pursuant to this chapter of all shopping carts of an owner in a one-day period. D. “Owner” means a person who owns or provides shopping carts for the use by customers in connection with the conduct or operation of a business. “Person” includes, without limitation, corporations, partnerships, and all other legal entities, and officers, employees, and authorized agents of an owner. E. “Premises” means the entire area owned and utilized by a retail establishment that provides shopping carts for use by customers, including any parking lot or other off - street area provided by or for an owner for use by customers for parking automobiles or other vehicles. For retail establishments that share a parking lot or off-street area for parking with other retail establishments, premises includes the entire parking lot or off- Item 16 Packet Page 130 Ordinance No. 1695 (2021 Series) Page 3 O 1695 street area for parking that is provided for use by customers of the retail establishments that share the parking lot or off-street area for parking. F. “Public areas” include, without limitation, City-owned properties, open spaces, parks, streams, creeks and riparian areas, public parking garages, portions of private property that are outdoor common areas of any building, business premise, apartment building or complex, or other premise, or any portion thereof, which is adjacent to public property and is open to the public. G. “Retail establishment” means any business located in the City of San Luis Obispo which offers or provides shopping carts for the use of the customers of such business regardless of whether such business is advertised or operated as a retail or wholesale business, and regardless of whether such business is open to the general public, is a private club or business, or is a membership store. H. “Shopping cart” means a basket mounted on wheels or a similar device generally used in a retail establishment by a customer for the purpose of transporting goods of any kind. 8.10.050. Required Signs and Identification A. Every owner must permanently affix to each shopping cart owned or provided by the owner a sign that includes the following information: 1. Identification of the owner of the shopping cart or the retail establishment to which it pertains, or both. 2. Notification that the unauthorized removal of the shopping cart from the premises of the retail establishment, or the unauthorized possession of the shopping cart, is a violation of law. 3. Notification of the procedure for authorized removal of the shopping cart from the premises. 4. A telephone number or address for returning the shopping cart to its owner or to the retail establishment identified thereon. B. In addition to signs on its shopping carts, every business that owns or provides shopping carts for use by its customers shall post conspicuous signs at or near all customer entrances and exits and at or near each entrance and exit to its parking lotor off -street parking area warning customers that removal of shopping carts from the premises is prohibited without written authorization by the owner. 8.10.060. Prohibitions It is unlawful for any business to allow or permit the removal of a shopping cart from the premises of the cart’s owner. Item 16 Packet Page 131 Ordinance No. 1695 (2021 Series) Page 4 O 1695 8.10.070. Cart Containment and Retrieval by Owners A. Daily Cart Confinement. All shopping carts located on the premises of a retail establishment (other than an establishment open for business twenty-four hours per day) must be collected at the end of each business day by the owner, employees, or authorized agents of the retail establishment and be collectively confined in a secured manner in a designated cart confinement area on the premises until the commencement of the next business day. All shopping carts located on the premises of any retail establishment open for business twenty-four hours per day, other than carts then currently in use by a customer, must be collected by the owner, employees, or authorized agents of the retail establishment and returned to a designated cart confinement area on the premises at least twice per calendar day between the hours of twelve p.m. (noon) and twelve a.m. (midnight) on each day the retail establishment is open for business. This section does not apply to: 1. Shopping carts located within an enclosed building. 2. Shopping carts removed from the premises of a retail establishment for purposes of repair or maintenance that are in the possession or custody of the party to whom removal has been authorized in writing by the shopping cart owner. 3. Shopping carts being transported by the owner, or an officer, employee, or authorized agent of the owner, to or from a business location of the owner. B. Prompt Retrieval of Carts. All abandoned shopping carts of a retail establishment that are found off the premises of the retail establishment must be retrieved as soon as practicable by the owner, or an authorized agent of the owner, including a cart retrieval service retained by the owner, but in no case longer than three business days after the owner has discovered or has been notified that the abandoned cart is off the premises of the retail establishment. C. Retrieval Services. Persons retained to perform shopping cart retrieval services must carry written authorization from the owner to be presented upon request by the Director. Vehicles used by retrieval services must bear conspicuous signs identifying the name of the cart retrieval service. 8.10.080. Impoundment and Retrieval of Abandoned Shopping Carts A. The Director may retrieve and impound any abandoned shopping cart pursuant to and in accordance with the provisions Business and Professions Code Section 22435.7. B. Impoundment Following Three-Day Notice. A shopping cart that has a sign affixed to it in accordance with the provisions of this chapter and Business and Professions Code Section 22435.1 may be impounded by the City provided both of the following conditions are met: 1. The shopping cart is located outside the premises or parking area of a retail establishment; and Item 16 Packet Page 132 Ordinance No. 1695 (2021 Series) Page 5 O 1695 2. Except as provided in the Impoundment Without Three-day Notice section of this chapter, the shopping cart is not retrieved within three business days from the date the owner of the shopping cart, or his or her agent, receives actual notice from the City of the shopping cart’s discovery and location. C. Impoundment Without Three-day Notice. 1. The City may retrieve and impound any abandoned shopping cart without first giving three-days’ notice provided: a. The Director provides actual notice to the owner, or his or her agent, of the impoundment of the shopping cart within twenty-four (24) hours following the impound; b. The notice informs the owner, or his or her agent, of the location where the shopping cart may be claimed; c. Any shopping cart reclaimed by the owner, or his or her agent, within three business days after the date of actual notice to the owner, or his or her agent, of the impound, must be released and surrendered to the owner, or his or her agent, at no charge, including the waiver of any impound and storage fees or fines which otherwise would be applicable; and d. The shopping cart is held at a location that is both: 1. Reasonably convenient to the owner of the shopping cart; and 2. Open for business at least six (6) hours of each business day. D. Immediate Retrieval and Impoundment by City for Impeding Emergency Services. The Director or designee may immediately retrieve and impound any shopping cart from public or private property if the location of the shopping cart impedes emergency services. E. Any cart reclaimed by the owner or their agent within three business days from the date the owner of the shopping cart, or their agent, is given actual notice by the City of the shopping cart’s discovery and location, or impoundment, shall not be deemed an occurrence for purposes of this chapter. F. The owner of any shopping cart that is not reclaimed within three business days after the date the owner has been given actual notice by the City of the shopping cart’s discovery and location, or impoundment, is subject to prosecution or the imposition of administrative costs, fees, fines, interest and other penalties applicable under this chapter commencing four business days after the date of notice. G. Any shopping cart not reclaimed from the City within thirty (30) days of receipt by the owner, or the owner’s agent, of actual notice from the City of the cart’s discovery and location, or impoundment, and any shopping cart, the owner of which cannot be determined, may be sold, or otherwise disposed of by the City. Item 16 Packet Page 133 Ordinance No. 1695 (2021 Series) Page 6 O 1695 8.10.090. Recovery of Fines and Costs by City A. Pursuant to Business and Professions Code Section 22435.7(f), any owner that fails to retrieve the owner’s shopping cart or shopping carts within three business days from the date of being given notice of the cart’s or carts’ discovery and location, or impoundment, by the City, is guilty of a violation of this chapter and may be punished with an administrative fine of fifty dollars ($50) for each occurrence in excess of three during the six-month period starting January 1 and ending on June 30 or the six-month period starting July 1 and ending December 31 of each calendar year. B. In addition to the fines imposed above, the owner shall pay the City’s actual costs for retrieving and storing the owner’s shopping cart or carts except when the owner, or their authorized agent, reclaims their cart or carts within three business days from being given notice of the cart’s or carts’ discovery and location, or impoundment, by the City, in which case, all fines, costs and fees shall be waived. 8.10.100. Disposal of Abandoned Shopping Carts The Director or designee may sell or otherwise dispose of any abandoned shopping cart that has not been reclaimed by its owner within thirty (30) days after the owner receives notice of the cart’s or carts’ discovery and location, or impoundment, by the City, or for which the owner of the shopping cart cannot be determined by the City. 8.10.110. Violation – Penalty Any person who violates any provision of this Chapter is guilty of an infraction and is subject to punishment as provided for in Chapter 1.12 (General Penalty) or as provided under Chapter 1.24 (Administrative Code Enforcement Procedures). SECTION 3. Publication. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. Item 16 Packet Page 134 Ordinance No. 1695 (2021 Series) Page 7 O 1695 SECTION 4. Severability. If any provision of this Ordinance is held invalid by a court of competent jurisdiction, such provision shall be considered a separate, distinct, and independent provision and such holding shall not affect the validity and enforceability o f the other provisions of this Ordinance. INTRODUCED on the 13th day of April 2021, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ________ 2021, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ____________________________. ______________________________ Teresa Purrington, City Clerk Item 16 Packet Page 135 O 1696 ORDINANCE NO. 1696 (2021 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 12.04 AND CHAPTER 12.20 OF THE SAN LUIS OBISPO MUNICIPAL CODE TO CLARIFY EXPRESSLY THAT TENTS AND SIMILAR STRUCTURES ARE PROHIBITED ENCROACHMENTS IN PUBLIC PARKS WHEREAS, The City has a substantial interest in promoting the public health, safety and welfare of its residents, visitors and businesses, and the safety and aesthetic qualities of City parks and recreational facilities; and WHEREAS, longstanding City encroachment regulations prohibit the erection of structures in public places, including parks, without a permit; and WHEREAS, there has been a proliferation of tents in public parks accompanied by an increase in public complaints to the City of adverse behaviors and interactions in parks, including drug and alcohol abuse, and associated verbal and physical intimidation, aggression and adverse interactions among park users; and WHEREAS, increased instances of erection of tents and other enclosed structures in parks obscures adverse and illegal activities from public view, contributes substantially to the accumulation of litter, clutter and visual blight, can interfere with pedestrian circulation, can obstruct or interfere with the lawful use of park areas by the general public for their intended recreational uses, and inhibits the effective regulation and enforcement against illegal activities in the parks; and WHEREAS, continuous presence of tents in park areas during hours of operation interferes with daily park maintenance to ensure safe and proper upkeep; and WHEREAS, the purpose of this ordinance is to promote the public health, safety and welfare and support lawful use and access to city parks by all community members consistent with the intended legal uses and aesthetic qualities of city parks by: (1) Providing for unobstructed, open public views of public park areas and activities conducted in public park areas to deter unsafe and illegal activities in the parks, to facilitate compliance with laws, and to protect the public, health safety and welfare of all park users; (2) Preventing interference with or obstructions of the flow of pedestrian circulation by the placement of tents and large volumes of personal belongings in pedestrian paths of travel; (3) Discouraging the establishment of residential uses of parks facilitated by tents, which have been observed to result in violations of park hours of operation, as well as illegal and unsanitary accumulation and disposal of litter, clutter, and visual blight associated with the occupation of tents in the parks; Item 16 Packet Page 136 Ordinance No. 1696 (2021 Series) Page 2 O 1696 NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows/or that (whatever action is needed): SECTION 1. Encroachment Amendments. Section 12.04.020 B (Encroachments Restricted) of Chapter 12.04 (Encroachments and Excavations) of the San Luis Obispo Municipal Code is hereby amended to include express reference to the application of the encroachment regulations related to the erection of tents in public parks, to read as follows: 12.04.020 Encroachments restricted. B. For purposes of this chapter, encroachments shall not include activities regulated as parades or special events pursuant to Chapter 5.80. Additional clarification of the application of these provisions to the use of tents or other enclosed structures in public parks are set forth in Chapter 12.20 (PARK REGULATIONS) of this code. SECTION 2. Section 12.20.02 (Definitions) of Chapter 12.20 (PARK REGULATIONS), is hereby amended and renumbered to clarify the definition of “park” and add a definition of “tent”, to read as follows: 12.20.020 Definitions. The following words shall have the meaning indicated when used in this chapter: A. “Amplified sound” means music, sound wave, vibration or speech projected or transmitted by electronic equipment, including amplifiers. B. “Director” means the director of parks and recreation or other person authorized by him or her, pursuant to law, to act in his or her stead. C. “Park” means any parkland, playground, beach, or recreational facility, including any parking lots, open space, creek, or any other area or structure accessory thereto under the operational control of the Parks and Recreation Department of the City of San Luis Obispo. D. “Permit” or “reservation” means written authorization for exclusive use of parks or buildings, or portions thereof, as provided for and defined by this chapter. E. “Tent” means any enclosed temporary physical structure that obstructs activities within the structure from public view, excluding canopies and covers that are open on all sides. “Tent” shall not include blankets, towels, mats, portable lawn chairs, unenclosed shade structures not affixed to public property, or similar items for temporary use in conjunction with otherwise lawful park use. F. “Vehicle” means any device by which any person or property may be propelled, moved or drawn, excepting a device moved by human power. Item 16 Packet Page 137 Ordinance No. 1696 (2021 Series) Page 3 O 1696 SECTION 3. Section 12.20.040 (Rules and regulations applicable in city parks.) of Chapter 12.20 (PARK REGULATIONS), is hereby amended to add a section expressly clarifying the prohibition against tents in public parks, to read as follows: F. It shall be unlawful for any person to erect, establish or occupy a Tent in any Park, except by express permission of the Director; in connection with a valid event permit issued by the Department; or as otherwise provided by resolution of the City Council. SECTION 4. All Prior ordinances, resolutions or administrative orders relating to parks regulations are hereby superseded to the extent inconsistent herewith. SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the 13th day of April 2021, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2021, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ____________________________. ____________________________________ Teresa Purrington, City Clerk Item 16 Packet Page 138 Department Name: Finance Cost Center: 2001 For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Brigitte Elke, Finance Director Prepared By: Esteban Cano-Gutierrez, Financial Analyst – Infrastructure Financing SUBJECT: SECOND READING OF ORDINANCE NO. 1697 (2021 SERIES) APPROVING THE LEVY OF THE SPECIAL TAX FOR THE SAN LUIS RANCH COMMUNITY FACILITIES DISTRICT. RECOMMENDATION Adopt Ordinance No. 1697 (2021 Series) entitled, “An Uncodified Ordinance of The City of San Luis Obispo, California, levying a Special Tax for the fiscal year 2021-2022 and following fiscal years solely within and relating to the City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch).” DISCUSSION Background On April 20, 2021, the City Council voted 4:0:1 to introduce Ordinance No. 1697 (2021 Series), levying a special tax for the San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch). The ordinance sets forth the special tax levy for fiscal year 2021-22 and all subsequent fiscal years and is solely applicable within the boundaries of the San Luis Ranch Community Facilities District. Policy Context The approved San Luis Ranch Specific Plan and related entitlements are consistent with the City’s adopted General Plan, and findings to that effect were made in both the original project approved in July 2017 as well as the amended project approval in August 2018. An evaluation of the project’s consistency with General Plan policies is discussed at length in Section 4.9 of the certified Final Environmental Impact Report. The Specific Plan requires that funding mechanisms be included to ensure that public infrastructure is coordinated with future development under the plan. The formation of a CFD was consistent with this requirement. A CFD, as enabled by the Community Facilities District Act of 1982, allows a local jurisdiction to levy a special tax within a specified area to pay for public services and/ or infrastructure needed within the area. Item 17 Packet Page 139 The City’s Financial Policies, under Section 9.E and F.1. outline the City’s administration of land-based financing and special tax district administration. Public Engagement The introduction of the Ordinance was part of a public hearing before the City Council and advertised on April 8, 2021. The Council Agenda of the meeting has been made public one week prior and the meetings is open to the public. The landowners of the properties subject to the tax have been notified and provided the necessary ballots to vote on the special tax district. The vote was reported on in public session during the April 20, 2021 meeting and the special tax approval passed. CONCURRENCE The Community Development Department concurs with the recommendations contained within this report. The landowners of the district approved the special tax levy by majority vote. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2020-21 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund N/A State Federal Fees Other: Total There is no fiscal impact to the City related to the adoption of the Ordinance. The special tax will be levied on the land and property owners of the district and pay for the infrastructure and related bond indebtedness of the district. Item 17 Packet Page 140 ALTERNATIVES Do not conduct the second reading and adoption of the Ordinance. The City Council could choose not to adopt the proposed Ordinance, in which case the CFD process is not completed. That means the project will not move forward without the authorization to levy the special tax in the San Luis Ranch CFD to cover the bonded debt payments that will provide, among other things, funding for Prado Road Interchange. Attachments: a- Ordinance No. 1697 (2021 Series) Item 17 Packet Page 141 O 1697 ORDINANCE NO. 1697 2021 SERIES AN UNCODIFIED ORDINANCE OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, LEVYING A SPECIAL TAX FOR THE FISCAL YEAR 2021-2022 AND FOLLOWING FISCAL YEARS SOLELY WITHIN AND RELATING TO THE CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN LUIS RANCH) WHEREAS, the City Council of San Luis Obispo (the Council) conducted proceedings under and pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California), and all laws amendatory thereof or supplemental thereto to form its Community Facilities District No. 2019-1 San Luis Ranch and authorized a special tax to finance certain public facilities; and WHEREAS, the Council also authorized the issuance of debt to finance the facilities, and established the appropriations limit for the Community Facilities District, all as set forth in Resolution No. 10998 (2019 Series) and Resolution No. 10999 (2019 Series) adopted on April 2, 2019; and WHEREAS, the Council adopted Ordinance No. 1661 (2019 Series) on April 16, 2019, to approve the levy of a Special Tax in connection with San Luis Ranch Communities Facilities District and its approved Rate and Method of Apportionment; and WHEREAS, on March 16, 2021, the Council adopted its Resolution No. 11233 (2021 series) (the “Resolution of Consideration”) in which it determined to consider updating the Rate and Method of Apportionment due to substantial changes in the development; and WHEREAS, on April 20, 2021 the City Council adopted a Resolution Calling a Special Mailed-Ballot Election, related to change proceedings within the San Luis Ranch Community Facilities District; and WHEREAS, the landowners within the San Luis Ranch Community Facilities District have completed the ballots and return the results to the City Clerk with at least two-thirds approving the amendment; and WHEREAS, in connection with the ballot results, the City Council has therefore adopted a Resolution of Change on April 20, 2021 related to the San Luis Ranch Community Facilities District Rate and Method of Apportionment; and WHEREAS, the action does not constitute a “Project” under California Environmental Quality Act Guidelines Sec. 15378 and therefore they are not applicable. THEREFORE, IT BE ORDAINED by the City Council of the City of San Luis Obispo does as follows: Item 17 Packet Page 142 Resolution No. 1697 (2021 Series) Page 2 O 1697 SECTION 1. Pursuant to Government Code section 53340, Resolution No. 10998 (2019 Series), adopted by the City Council (the “City Council”) of the City of San Luis Obispo (the “City”) on April 2, 2019 (the “Resolution of Formation”), Resolution No. 11233 (2021 Series), adopted by the City Council on March 16, 2021 (the “Resolution of Consideration”) and Resolution No. 11239 (2021 Series) adopted by the City Council on April 20, 2021 (the “Resolution of Change” and, collectively with the Resolution of Formation and the Resolution of Consideration, the “Resolutions”), and in accordance with the Amended and Restated Rate and Method of Apportionment of Special Tax (the “RMA”) set forth in Exhibit A to the Resolution of Consideration, relating to the City of San Luis Obispo Community Facilities District No. 2019-1 (San Luis Ranch) (the “Community Facilities District”), a special tax is hereby levied on the Community Facilities District for the 2021-2022 fiscal year and for all subsequent fiscal years in the amount of the maximum special tax authorized under the Resolutions and the RMA, provided that this amount may be adjusted annually, subject to the maximum authorized special tax under the Resolutions and the RMA. SECTION 2. The Finance Director of the City of San Luis Obispo or designee thereof (the “CFD Administrator”) or such other officer or staff member succeeding to the duties of the CFD Administrator with respect to the Community Facilities District, with the aid of the appropriate officers and agents of the City and without further action of the City Council, is authorized and directed (a) to determine each year the appropriate amount of the special tax (pursuant to and as provided in the Resolutions and the RMA), (b) to prepare the annual special tax roll in accordance with the Resolutions and the RMA and (c) to provide all necessary and appropriate information to the County of San Luis Obispo (the “County”) Tax Collector in proper form, and in proper time, necessary to effect the correct and timely billing and collection of the special tax on the secured property roll of the County; provided, that as provided in Section 53340 of the California Government Code, the Resolutions and the RMA, the City Council has reserved the right to utilize any other lawful means of billing, collecting, and enforcing the special tax, including direct billing, supplemental billing, and, when lawfully available, judicial foreclosure of the special tax lien. SECTION 3. The appropriate officers and agents of the City are authorized to make adjustments to the Special Tax roll prior to the final posting of each Special Tax to the County tax roll each fiscal year, as may be necessary to achieve a correct match of each Special Tax levy with the assessor’s parcel numbers finally utilized by the County in sending out property tax bills. SECTION 4. The City agrees that, in the event either Special Tax is collected on the secured tax roll of the County, the County may add its reasonable and agreed charges for collecting the related Special Tax from the amounts collected, prior to remitting the related Special Tax collections to the City. Item 17 Packet Page 143 Resolution No. 1697 (2021 Series) Page 3 O 1697 SECTION 5. Taxpayers who have requested changes or corrections of the Special Tax pursuant to Section 8 of the RMA and who are not satisfied with the decision of the CFD Administrator (whether the CFD Administrator disagrees with the taxpayer or concludes that the City is not authorized to consider the change requested), may appeal to the City Council. The appeal must be in writing and fully explain the grounds of appeal and must be based solely on the correction of mistakes in the levy based upon the status of the property, and no other appeals will be allowed. The CFD Administrator shall schedule the appeal for consideration within a reasonable time at a City Council meeting. SECTION 6. If, for any reason, any portion of this ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel by a court of competent jurisdiction, the balance of this ordinance, and the application of the special tax to the remaining parcels shall not be affected. SECTION 7. This ordinance shall take effect and be in force immediately as a tax measure; and before the expiration of twenty (20) days after its passage the same shall be published in summary, with the names of the members voting for and against the same, at least once in a newspaper of general circulation published and circulated in the Community Facilities District. Item 17 Packet Page 144 Resolution No. 1697 (2021 Series) Page 4 O 1697 SECTION 8. Ordinance No. 1661 (2019 Series) adopted by the City Council on April 16, 2019, is hereby superseded to the extent it is inconsistent with this ordinance. INTRODUCED on the 20th day of April 2021, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of _____ 2021, on the following vote: AYES: NOES: ABSENT: Mayor Heidi Harmon ATTEST: Teresa Purrington City Clerk APPROVED AS TO FORM J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ____________________________. ____________________________________ Teresa Purrington City Clerk Item 17 Packet Page 145 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 17 Packet Page 146 Department Name: Police Cost Center: 8001 For Agenda of: May 4, 2021 Placement: Consent Estimated Time: N/A FROM: Brian Amoroso, Acting Chief of Police SUBJECT: POLICE DEPARTMENT 2019/2020 CRIME COMPARISON AND UPDATE RECOMMENDATION Receive and file the 2020 Police Department crime report. REPORT-IN-BRIEF On May 4th, staff will provide the City Council with a presentation (Attachment A) and update regarding Police Department activities for 2020. This update will provide Council with information regarding community outreach, crime, police operations, homelessness, traffic, noise and downtown. At the conclusion of 2020, the Police Department saw a 10% increase in violent crime and a 7% decrease in property crime, with a 5% decrease in Part I crime overall. The presentation that will be presented on May 4th will highlight the department’s efforts with intelligence led and community policing efforts, review some of the challenges the department faced in 2020, detail some of the reasons San Luis Obispo experienced changes in crimes, discuss the Police Department’s continued community outreach, review noise related calls for service, and briefly discuss some of the continued challenges faced in 2021. At the beginning of FY 2021, police staffing was at 91.5 FTEs. Staffing remained static through 2020, however the FTEs have recently been reduced by one Cannabis Detective position (90.5 FTEs) as the City transitions Cannabis application and processing to an outside entity. DISCUSSION Community Outreach: The Police Department is incredibly fortunate to have a community in San Luis Obispo that understands many of the challenges and routinely partners with the City to foster a positive public relation and to establish a safer community. One of the Police Department’s primary goals is to reduce harm. SLOPD reduce harm by reducing crime and victimization, reducing traffic collisions, and increasing multi-modal safety, strengthening our regional partnerships, strengthening the health and well-being of our employees, and strengthening the relationship with the community SLOPD serves. Item 18 Packet Page 147 To meet our goal of reducing harm by strengthening our community/police relationship, we started the PACT (Police and Community Together) in January 2017. PACT represents a committed and diverse group of community members/advocates that partner with law enforcement to affect positive social change through dialogue, education and understanding. Currently, PACT has representation from major groups representing the Jewish, Black, Latino, Muslim, LGBTQ, Interfaith, Student and Homeless/Mentally Ill communities. The police department has Officers that serve as liaisons to each of these groups, then report back monthly to each other about what each group is working on. The liaisons connect with and learn about their respective communities, then serve as a conduit between the police department and the community. Additionally, the community works with law enforcement to develop training that is important for law enforcement to experience, and in turn, SLPD can educate them about policing. In 2020, SLOPD continued the partnership with the Homeless Services Oversight Council (HSOC), Transitions Mental Health, County Behavioral Health, and the Sheriff’s Office to address concerns surrounding homelessness and impacts within our community. The HSOC has proven to be a successful endeavor as the department all look for reasonable, fair, and common- sensed solutions to homelessness county -wide. Lastly, police officers assigned to neighborhoods continued to attend neighborhood outreach meetings to discuss current issues and neighborhood safety. Outreach was already in place, such as the neighborhood officer program, neighborhood outreach and civility effort and Cal Poly partnerships, and those have and will continue to grow. The COVID-19 pandemic created challenges in the neighborhoods as many families social distanced by staying at home and the public health orders prohibited gatherings for most of the year. SLOPD anticipates that the second half of 2021 will be a busy time as life returns to normal activity. Crime: Overall, SLOPD has had continued success with intelligence led policing efforts. The City of San Luis Obispo experienced an unprecedented increase in crime since 2015 (21% from 2014 to 2015), and that trend continued in 2016 (11% from 2015 to 2016). After starting a part time crime analyst in 2017, SLO realized a 13% reduction in Part I crime from 2016 to 2017. Based on the success of the part-time Public Safety Analyst, the Council authorized and funded a fulltime benefited position, which began in early 2019. The Department’s Crime Analyst has continued to focus attention on high-crime places and high-rate offenders to effectively reduce crime within the community. The analyst continues to help SLOPD staff and officers understand when, where, and how to focus limited resources, as well as how to evaluate the effectiveness of the strategies. Sound public safety analysis has been paramount to the success. In 2020, the Crime Analyst continued to work closely with City GiS to further refine the weekly crime reports and dashboard to convey near real-time analysis of violent and property crimes, interactive mapping, and case summaries. This dashboard has been very successful and was made available to the public in 2020 via the City’s website. Item 18 Packet Page 148 By the end of 2020, SLO realized a 10% increase in violent crime and a 7% decrease in property crime, with a 5% decrease overall. Throughout 2020, SLOPD saw an 11% decrease in the number of reported sexual assaults over 2019. The trend reflects the results of the pandemic and is likely attributed to a lack of dating and celebratory opportunities due to the public health orders and the closure of the restaurant and bar scene for a large portion of the year. In 2020 SLOPD saw a 9% increase in the number of residential burglaries, while commercial burglaries saw a slight 1% decrease. This is likely due to the pandemic with persons spending more time at home and less activities in commercial districts and establishments. SLOPD continued to receive complaints regarding adverse homeless behavior in the downtown, City parks and other facilities and in the creeks and open space. Many of these behaviors can be attributed to substance abuse, mental illness, or a combination of both. In 2018 SLOPD added a full-time mental health specialist to the Community Action Team (CAT). Transitions Mental Health Association (TMHA) was awarded the contract from County Behavioral Health and worked with SLOPD to hire John Klevins. At the conclusion of 2020, after a second year of collaboration, SLO downtown had a 23% decrease over 2019 in calls for service and a 16% reduction in Downtown Homeless calls for service. The COVID-19 pandemic is directly responsible for many of the call for service and crime trends seen in 2020. The City of San Luis Obispo was all but shut down for several months, which resulted in reduced calls for service, especially downtown. During the height of the pandemic, officers were responding to priority calls for service, but were not conducting proactive enforcement as the Police Department balanced continued enforcement with the need to maintain a healthy officer core to respond to emergencies. Conversely, officers responded to numerous public health calls regarding business operations, social gatherings, and mask regulations. The Police Department has continued to work closely with Code Enforcement and City Leadership to educate the public as to the evolving orders, rules and regulations as they relate to COVID-19. Although starting the year fully staffed, the department suffered a decrease in staffing due to retirements, COVID leave including quarantine and illness, and numerous long-term on-duty injuries. Several specialty units have been operating at a reduced staffing level including CAT, Special Enforcement Team (SET) and the Traffic Unit. Hiring to fill vacancies has continued to be extremely challenging for the Police Department. Like many law enforcement agencies, the department is having difficulty recruiting lateral employees. Hiring/retention continues to be a major challenge for both sworn officers and civilian communications personnel. SLOPD has completed a recruitment video, strengthened the outreach on Social Media and within communities outside of SLO County, and implemented a hiring bonus for out of county laterals. Despite these efforts, the department saw several Officers accept jobs at other Law Enforcement agencies. SLOPD anticipates sending up to six new cadets to the Police Academy in June 2020 with an expected graduation of 12/2020. Item 18 Packet Page 149 PART 1 CRIMES Violent Crime Property Crime 2019 2020 2019 2020 1st Half % change 1st Half % change Homicide 0 0 0% Commercial Burglary 104 84 -19% Rape 18 19 5% Residential Burglary 51 40 -18% Robbery 17 17 0% Theft from Vehicle 243 184 -24% Agg. Assault 58 73 26% Stolen Vehicle 27 46 70% General Theft 493 392 -20% Total 1st Half 93 109 17% Total 1st Half 918 746 -18% 2nd Half % change Homicide 0 1 100% 2nd Half % change Rape 21 18 -14% Commercial Burglary 69 87 26% Robbery 17 11 -35% Residential Burglary 53 73 38% Agg. Assault 56 66 18% Theft from Vehicle 191 208 9% Stolen Vehicle 47 71 51% Total 2nd Half 94 96 2% General Theft 460 435 -5% Total Year Violent 187 205 10% Total 2nd Half 820 874 7% Total Year Property 1738 1620 -7% 2019 2020 % Change Total Part I Crime 1925 1825 -5% Police Operations: Records: In the Records Division, the number of reports processed went from 6,828 in 2019 to 5,685 in 2020. (17% decrease) The number of citations processed by the Records Division decreased from 4,683 in 2019 to 3,215 in 2020. (31% decrease) The number of Public Records Act requests increased, from 61 in 2019 to 66 in 2020. Property: In the Property Division, the number of Evidence Items booked increased from 7,294 in 2019 to 7,551 in 2020. (3.5% increase) Discovery Orders processed increased from 666 in 2019 to 939 in 2020. (41% increase). WatchGuard video recorded decreased from 74,294 in 2019 to 54,877 in 2020. (26% decrease) WatchGuard Video/Cases booked in as evidence increased from 1083 in 2019 to 1253 in 2020. (16% increase) The numbers are by case number, not by the number of videos in each case, which can be upwards of 10-15 videos per case. Item 18 Packet Page 150 Dispatch: In the Communications Center staff saw an increase regarding the number of calls into the center. The number of calls received decreased by 6%, from 111,193 in 2019 to 104,636 in 2020. Calls for service increased by 1% from 37,943 in 2019 to 38,289 in 2020. Dispatch has had several vacancies throughout 2020 due to retirements and resignations. The department recently started training one new Dispatcher and a second is expected to compete the hiring process by the end of May 2020. Investigations: In the Investigations Bureau, the number of cases assigned for follow up by an Investigator went up from 276 in 2019 to 303 in 2020. (10% increase). The Special Enforcement Team (SET – four Officers) has been staffed at 75% capacity for 2020, and they have handled multiple complex investigations and special enforcement objectives including the resolution of a house in the downtown causing significant disruption to the neighborhood due to illegal narcotic activity. In 2020, the Investigations Bureau also had three of the five investigator positions turnover and start new in the unit, requiring additional training time to become a proficient investigator. Staffing: During 2020, the Police Department lost approximately 16,716 hours due to illness, vacation, on- duty injuries, and other assorted leave types. This total equates to a loss of eight officers for the year. The average uniformed officer handles roughly 900 calls for service per year assuming full staffing levels. Homelessness: This past year the police department responded to numerous complaints regarding the increase in transient camp occupancies and locations. In addition, City Park facilities have become an area of concern as homeless individuals have attempted to camp in the parks, erecting tents and other structures. The Community Action Team, City Rangers and patrol officers increased their presence in known transient camp locations and parks to enforce violations committed in their presence. The challenge law enforcement often faces is when there is no law or city code violation being committed, but there is considerable nuisance behavior. Being homeless in a space open to the public is not a crime. SLOPD has continued to educate and encourage the public and business owners to contact the police department when they observe violations being committed. COVID-19 created additional challenges throughout the year as several court rulings and statewide guidelines prevented the booking of low-level offenders in County Jail and halted most of the camp cleanups, causing friction between homeless individuals and advocates and other city residents. In evaluating calls for service pertaining to the homeless population during 2020 (to include contacts as suspects, victims or witnesses) these contacts increased by 312 for a total increase of 4% compared to 2019. In 2020 the police departments overall calls for service increased by the same 4%. Homeless related calls for service accounted for 22% of all cal ls for service citywide, equal to the percentage last year. Item 18 Packet Page 151 Traffic: The Police Department saw a significant systemic decrease in traffic related issues for 2020. Vehicle collisions decreased by 51%, pedestrian involved collisions decreased 39%, and collisions involving bicycles decreased 48%. SLOPD has continued to focus on public outreach related to bicycle safety and primary collision factors related to these accidents. The reduction in vehicle, pedestrian, and bicycle collisions in 2020 correlates to the COVID-19 pandemic and the stay-at -home order and shutdown of most businesses and services throughout the City. In 2020, SLOPD received a grant through the Office of Traffic Safety (OTS) which funded 10 saturation patrols, 4 traffic enforcement operations, 4 distracted driving operations, 2 bicycle/pedestrian operations and one DUI Checkpoint. Most of the OTS grant activities were modified to solo patrol activities to comply with COVID-19 restrictions and ensure the safety of our staff. Traffic and patrol continue to collaborate with Public Works to examine collision prone locations in our City to address through education, enforcement, and engineering efforts. In 2020, there was a 38% decrease in traffic citations issued and a 44% decrease in warning s. In 2020 there were 5,155 traffic stops completed, compared to 8,853 in 2019, a 42% decrease. One traffic Officer position was vacant due to staffing for the entirety of 2020, and the department had severely limited staffing and proactive patrols due to the COVID-19 pandemic. These factors drastically reduced the amount of time and effort our Officers spent on traffic enforcement. DUI arrests decreased by 50% in 2020, from 226 to 114, largely attributed to the extended shutdown of the bars and restaurants in the City. Although the reduction in collisions and DUI’s is great news, the numbers are likely to rise significantly in 2021 as the City experiences a more “normal” year in terms of population and visitors. Noise: Party related noise complaints increased by 24% in 2020. This increase marks the first year that SLOPD has seen an increase after three straight years of decreases and an all -time low in party related noise complaints since tracking began in 1998. This increase is attributed to a variety of factors, primarily the suspension of the party registration program and factors related to COVID - 19. 2020 saw many residents sheltering and working from home and generally spending much more time in the residence. With more people being at home, there was a greater likelihood of noise being generated and a lower tolerance for noise as residents followed the public health guidance to prevent the spread of the virus. The Police Department continued efforts building upon past initiatives and campus partn erships. Police Department staff continued to participate in a virtual summer orientation for incoming Cal Poly Freshmen and parents. These virtual presentations provided staff with the opportunity to “front load” incoming students and their supporters with information on living in SLO, city laws that are important to know and how to stay safe. Although most classes were virtual in 2020, there were many students that moved back to San Luis Obispo for the year but attended classes online. Neighborhood officers continue to be engaged in community outreach, providing education, and conducting problem-oriented policing at locations before calls for service are generated. Neighborhood officers also visit properties that have had multiple noise violations to hel p educate residents and encourage wise social event planning. Item 18 Packet Page 152 A wide variety of messaging methods are used by the police department to reach residents: social media ads, doorhangers, posters/flyers, e-blasts, presentations, media releases and participation in the Student Community Liaison Committee (SCLC). Lastly, the partnerships with Cal Poly and Cuesta College continue to provide many more opportunities for the noise and neighborhood wellness messaging. Information shared is dispersed through many different avenues including, student government, housing, Greek life, athletics, clubs, and off-campus programs. Downtown: Downtown calls for service decreased by 23% in 2020. As previously mentioned, the department operated with several shortages in Motors and CAT units for portions of the year. Downtown will continue to be a priority for Bicycle Officers, CAT and all of patrol. In 2020, the department saw a 30% decrease in officer-initiated calls and a 45% decrease in downtown officer-initiated calls, which is directly attributed to the COVID-19 related shutdown and our direction to Officers to minimize proactive contact with the public to ensure emergency response readiness. Officers worked over 70 protests, rallies and marches throughout the year, ensur ing public safety and the protection of the freedom of speech and freedom of assembly. Downtown officers continue to utilize crime prevention through environmental design techniques while partnering with Public Works and local businesses to improve condit ions such as lighting, landscape, building maintenance, fencing, programming, and traffic flow. By addressing some of these issues the city and local businesses can deter criminal activity. Currently there are 17 public cameras placed throughout the City, with the majority used in the downtown core and City parks, and three new cameras added this year covering the Jennifer St bridge and the new safe parking area next to the Railroad Museum. Conclusion: 2020 proved to be an extremely challenging year for Law Enforcement as the department had to balance providing emergency services, maintaining a safe work environment for our employees, educating, and enforcing constantly changing public health order regulations and supporting community needs including several months of protests and rallies. Our staff has worked tirelessly throughout the year to ensure San Luis Obispo is safe and ready to rise out of the pandemic well-positioned for recovery. Crime will continue to be a major priority for SLOPD. After signif icant increases in crime that peaked in 2016, the implementation of numerous crime reduction initiatives and community programs have resulted in a 19% decrease in Part 1 crime over the last 4 years. Property crimes continue to be a significant issue within the city, and throughout the state. Theft from unsecured vehicles and residences continue to be a problem within the city. Continued education has helped with decreasing the trend, which SLOPD will continue throughout 2021. These measures will include directed patrols targeted at problem locations, utilization of stings and undercover operations to catch criminals engaged in or looking for crimes of opportunity and using print media, social media, and community meetings to educate our citizens to reduce victimization and increase awareness. Item 18 Packet Page 153 PUBLIC ENGAGEMENT The public will be allowed to submit comments in writing prior to the meeting regarding this item. No other public engagement was completed. CONCURRENCES None. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15 378. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20 & 2020-21 Funding Identified: Yes The Police Department is funded through the General Fund’s annual budget appropriation adopted by the City Council. All efforts within the report are covered through the annual program allocations as outlined in the City’s Financial Plan. ALTERNATIVES The City Council could choose not to receive and file the report. This is not recommended as the report provides a record of key crime related statistics and trends that are important for policy makers and the public to be aware of in our community. Attachments: a - COUNCIL READING FILE - 2020 Crime Update Item 18 Packet Page 154 Department Name: Parks and Recreation Cost Center: 7001 For Agenda of: May 4, 2021 Placement: Study Session Estimated Time: 90 Minutes FROM: Greg Avakian, Parks and Recreation Director Prepared By: Shawna Scott, Senior Planner SUBJECT: STUDY SESSION ON THE PUBLIC DRAFT PARKS + RECREATION BLUEPRINT FOR THE FUTURE: 2021-2041 (PARKS AND RECREATION PLAN AND GENERAL PLAN ELEMENT UPDATE) RECOMMENDATION 1. Receive a presentation on the Public Draft Parks + Recreation Blueprint for the Future: 2021 - 2041 (Parks and Recreation Plan and General Plan Element Update) (Attachment A); and 2. Provide comments and direction to staff to guide the Final Draft Parks + Recreation Blueprint for the Future: 2021-2041 (Parks and Recreation Plan and General Plan Element Update). REPORT-IN-BRIEF The City Parks and Recreation Department has prepared the Public Draft Parks + Recreation Blueprint for the Future: 2021-2041 (Parks and Recreation Plan and General Plan Element Update) (Plan Update) to guide the future of parks and recreation in the City for the next twenty years. This report provides an overview of the Public Draft Plan Update. The current Parks and Recreation Master Plan and Element (2001) is proposed to be replaced in its entirety by the Plan Update. One notable and important change with the Plan Update is that it addresses urban parks and recreation, and no longer includes plans or policies related to the City’s Open Space, which is appropriately addressed in the City’s Conservation and Open Space Element (adopted in 2006). The purpose of this study session is to invite comments, questions, and general input on the Public Draft Plan Update from the City Council and the public. The Plan Update is scheduled to return to the City Council for consideration and potential adoption on July 6, 2021. The Public Draft Plan Update and Public Draft Initial Study/Negative Declaration are provided as Council Reading Files (Attachments A and B) and the Public Draft Plan Update is available for public review at https://www.slocity.org/government/department-directory/parks-and- recreation/parks-and-recreation-plan-and-element-update. DISCUSSION Background In 2017, the City Parks and Recreation Department initiated the update to the City’s Parks and Recreation Element of the General Plan and the Parks and Recreation Plan (Plan Update). Item 19 Packet Page 155 On November 7, 2017, the City Council approved the Project Plan for the Plan Update, and a consultant team led by WRT was selected in February 2018 to support staff. In April 2018, the Parks and Recreation Commission (PRC) approved the Community Engagement Plan1 for the project, and the Plan Update has been informed by thr ee years of public outreach and comment, public workshops and forums, a statistically valid survey, and focused review by Parks and Recreation and Planning staff and the PRC. The Plan Update will be an essential guide for parks and recreation in San Luis Obispo, while also serving as the General Plan Parks and Recreation Element; goals and policies are embedded in the City’s larger blueprint for future growth and change. The Plan Update also serves to support, supplement, and advance the goals of the City’s Climate Action Plan for Community Recovery 2, Active Transportation Plan3, and Recommendations to City Council for Advancing Diversity, Equity, and Inclusion in the City of San Luis Obispo4. Implementation of the Plan supports and strives to ensure that City’s parks, facilities, and programs will be inclusive, safe, and accessible to all people. 1 Approved by the Parks and Recreation Commission in April 2018, available here. 2 Climate Action Plan for Community Recovery (August 2020), available here 3 Active Transportation Plan (February 2021), available here 4 Recommendations to City Council for Advancing DEI (January 2021), available here Item 19 Packet Page 156 Park and Recreation Needs The City currently has 205.6 acres of parkland, including 99.7 acres of Community Parks, 34.7 acres of Neighborhood Parks, 7.9 acres of Mini Parks, and 63.3 acres of recreational centers and special facilities. Proposed park acreage standards require a minimum of 10 acres of parkland per 1,000 residents, including five acres of Neighborhood Parks per 1,000 residents. For reference, the City’s 2018 Capital Facilities Fee Nexus Study calculated the park level of service at 4.18 acres per 1,000 residents or 2.69 acres per daytime service population.5 Looking ahead, the City would need an additional 361 acres of parkland to meet the park acreage standard in 2035, inclusive of 249 acres of Neighborhood Parks, based on resident population estimates in the City’s General Plan (56,686) (Attachment A, Appendix C, Community Needs Assessment Table 2-6, San Luis Obispo Park Acreage Standards and Level of Service). An additional 677 acres of parkland would be needed if the same standard is applied to the estimated 2035 daytime (service) population of 88,286.6 Implementation of currently approved parks within adopted Specific and Development Plans (Avila Ranch, Orcutt Area Specific Plan, Froom Ranch Specific Plan, and San Luis Ranch Specific Plan) would provide 41 acres of parkland. This will contribute to the total acreage of parkland in the City, resulting in total park acreage of 246, with a remaining gap of 320 acres needed to serve the estimated resident population in 2035. An additional 636 acres of parkland would be needed if the 2035 daytime population is considered. The recommended park acreage standard is ambitious and aspirational, and these gaps highlight the need for multi-use, multi-generational, and multi-ability amenities within parkland and facilities, in addition to the identification of new parkland within the City. Known planned amenities within Specific Plan areas are identified in Table 1. Specific Plan Parkland Amenities below. Table 1. Specific Plan Parkland Amenities Amenity Type Specific Plan – Planned Amenities Diamond Athletic Fields (Youth) 1 - Avila Ranch Rectangle Athletic Fields 3 – Orcutt Area 1 – Avila Ranch Outdoor Basketball Court 1 – Avila Ranch (full court) 3 – Avila Ranch (half court) 2 – San Luis Ranch (half court) 1 – Orcutt Area (full court) Tennis Court 4 – Orcutt Area 2 – Avila Ranch Playground/Tot Lot 7 – Avila Ranch 2 - San Luis Ranch 3 - Orcutt Area Dog Park/ Off-leash Dog Area 1 – Avila 1 – Orcutt Area 5 The identified level of service included existing parks and facilities , and did not include planned parks identified in adopted Specific Plans (Capital Facilities Development Impact Fee Nexus Study, 2018) 6 Daytime (service) population identified in the Capital Facilities Development Impact Fee Nexus Study, 2018) Item 19 Packet Page 157 Amenity Type Specific Plan – Planned Amenities Pickleball Court 6 – Orcutt Area 2 – Avila Ranch Group Picnic Areas 1 – Orcutt Area 1 – Avila Ranch (BBQ) In order to determine base needs for City park facilities and amenities, staff worked with the project consultant team (WRT and PROS) to assess the current level of service for park facilities and amenities based on the 2017 estimated resident and daytime populations, and the 2035 estimated resident and daytime populations. This assessment considered a list of key amenities based on the City’s current inventory, planned amenities identified in Specific Plan areas (see Table 1. Specific Plan Parkland Amenities, above), input from the public and the PRC, consideration of recreational trends, and recommendations identified in the Community Needs Assessment. In addition to overall need, the Plan Update assessed needs based on identified sub-areas within the City (refer to Figure 1. City Sub-Areas), with a policy directive for equitable distribution of amenities through-out the City, such that every resident would be able to access no-cost key amenities via sustainable transportation including walking, biking, rolling, or transit. Existing City inventory, existing needs, future needs, access gaps, and implementation timing priority are identified in Table 2. Amenity Inventory and Current and Future Needs, on the following page. Figure 1. City Sub-Areas Area of Residence 1. Foothill/Anholm 2. Downtown 3. Meadow/Sinsheimer 4. Righetti/Orcutt 5. Stoneridge/Margarita 6. Laguna Lake Item 19 Packet Page 158 Table 2. Amenity Inventory and Current and Future Needs Amenity Current Inventory Current Additional Need General Plan Build-out Total Additional Need1 Location Based on Access Gap and Planned Amenities (Sub-area)2 Priority ATHLETIC FIELDS Diamond Athletic Fields (Youth) 4 2 3 Downtown Laguna Lake 0-10 years Diamond Athletic Fields (Youth/Adult) 1 4 5 Downtown Meadow/Sinsheimer Righetti/Orcutt Stoneridge/Margarita Laguna Lake 0-10 years Diamond Athletic Fields (Adult) 1 2 3 Downtown Righetti/Orcutt Stoneridge/Margarita Laguna Lake 0-10 years Rectangle Athletic Fields 4 4 6 Downtown Meadow/Sinsheimer Laguna Lake 0-5 years SPORTS COURTS Outdoor Basketball Court 6 6 8 Citywide 0 – 20 years Tennis Court 8 7 11 Downtown Laguna Lake 0-5 years Pickleball Court 3 9 12 Foothill/Anholm Downtown Meadow/Sinsheimer Laguna Lake 0 – 5 years Sand Volleyball 8 3 5 Downtown Stoneridge/Margarita Laguna Lake 0-20 years Roller Sports Court 1 1 2 Downtown Meadow/Sinsheimer Righetti/Orcutt Stoneridge/Margarita Laguna Lake 10-20 years Multi- generational recreation and community center Ludwick Center and SLO Senior Center 27,000 sf 46,000 sf Citywide 5-20 years Dog Park/ Off-leash Dog Area 1 6 7 Foothill/Anholm Downtown Meadow/Sinsheimer 0-5 years Playgrounds/ Tot Lot 26 10 18 Citywide 0-20 years Item 19 Packet Page 159 Amenity Current Inventory Current Additional Need General Plan Build-out Total Additional Need1 Location Based on Access Gap and Planned Amenities (Sub-area)2 Priority Group Picnic Areas 9 6 9 Downtown Stoneridge/Margarita 0-5 years SPECIAL RECREATION FACILITIES Disc Golf Course (18-hole) 2 0 0 N/A N/A Golf Course 1 0 1 Citywide 10-20 years Swim Center 1 Expansion of existing pool 1 Citywide 5-20 years Skate Park 1 0 1 Citywide 10-20 years Pump Track (Bike or Skate) 0 2 3 Citywide 0-20 years 1 Includes amenities identified in approved Specific Plans. Public Draft Plan Update The following discussion provides a brief guide to the structure and content of the document. The first thing the City Council and the public may notice is the updated title, which has been modified to be more visionary, aspirational, and inclusive: Parks + Recreation Blueprint for the Future: 2021-2041 Parks and Recreation Plan and General Plan Element Update The Plan is divided into five chapters: Chapter 1 introduces the planning process and overarching goals of the plan. The Plan includes the following six Guiding Themes, which permeate through the Plan’s recommendations, goals, and policies: • Design Excellence • Stewardship and Sustainability • Inclusion and Access • Building Community • Partnerships and Public Engagement • Good Governance Chapter 2 takes a deeper look at San Luis Obispo through demographic analysis and its parks through a detailed inventory. This information was presented to the PRC and the public in a Community Needs Assessment Report, which is included in the Plan Update Appendix. Item 19 Packet Page 160 Chapter 3 provides a summary of the extensive community engagement conducted in association with the Plan Update. This information was presented to the PRC and the public in the adopted Community Needs Assessment Report, and subsequent updates presented to the PRC. Chapter 4 provides the detailed policies that flow from five system-wide goals. The draft goals and policies were presented to the PRC in July 2020 and have been expanded and updated based on continued public input, continued staff review, and to maintain consistency with the adopted Climate Action Plan and Active Transportation Plan and Recommendations to City Council for Advancing Diversity, Equity, and Inclusion in the City of San Luis Obispo. The Plan Update is intended to support and advance the goals and programs identified in these previously adopted plans. The five goals include: • Build Community and Neighborhoods: City Parks and Recreational facilities should build and connect community through inclusive and diverse amenities and programming. • Meet the Changing Needs of the Community: Leverage regionalism and creatively increase the number of City parks, recreational facilities and amenities, to meet user needs. • Sustainability: The City’s Parks and Recreation facilities will be vibrant, resilient, and sustainable. • Optimize Resources: Establish, maintain, and operate parks, facilities, and programs in a manner that is cost effective and manageable while engaging the community in a manner that optimizes involvement and support. • Safety: Provide safe, accessible, inclusive, and well-maintained City parks, recreational facilities, and amenities. Chapter 5 provides the details around implementation and funding strategy, including phasing and priority projects. This chapter was informed by public comment and PRC feedback on project prioritization for the near term (0-5 year), mid-term (5-10 year), and long-term (10-20 year) timeframes. Park and facility improvements can be understood in three tiers: Tier 1, Critical Park Improvements (Maintenance); Tier 2, Strategic Park Improvements, Improvement of Existing Parks/Facilities; and Tier 3, “Visionary” Park Improvements, New Opportunities. Tier 3 park and facility needs and priorities identified in the Public Draft Plan Update are grouped by park classification (i.e., neighborhood parks, community parks) and are then presented in alphabetical order. Project priorities are identified by phase (near -term, mid-term, and long-term). For quick reference, Tier 3 park and facility needs and priorities are also summarized in Table 5-1 of the Public Draft Plan Update (Attachment A). Item 19 Packet Page 161 Implementation of the Plan Update The Plan Update will be implemented over the next twenty years, depending on funding and staffing resources. Plan Update Chapter 5 (Implementation) is intended to be aspirational and identifies amenities that may be appropriate for existing parks based on the wants and needs expressed by the community. As amenities are constructed, the City will need to monitor implementation of the Plan Update and track progress towards meeting service standards for both park acreage and identified amenities, equitable distribution of amenities, and resolving access gaps such that all residents will be able to enjoy parks and recreation within a ½ mile (or ten minute walk) from their home. The Plan Update is also intended to be flexible, to enable the City to conduct focused community outreach and prepare park-specific comprehensive plans for the following existing community and neighborhood parks: • Laguna Park (update Laguna Lake Plan) • Meadow Park and Meadow Park Center • Sinsheimer Park, Sinsheimer Stadium, SLO Swim Center • Mitchell Park In addition, as noted in the plan, new parkland is needed in the following sub-areas: • Foothill/Anholm: in the vicinity of Grand Avenue, potentially through agreement with San Luis Coastal Unified School District; • Downtown: along the Johnson Avenue corridor south of the high school; • Meadow/Sinsheimer potentially through expansion or amenitization of Stoneridge Park; • Stoneridge/Margarita: along the South Higuera corridor; • Laguna Lake: at the Laguna Lake Golf Course as part of potential site reuse. Key considerations for the enhancement and redevelopment of existing parks and the development of new parkland will be striking a balance between active and passive recreational use, maintaining neighborhood character, ensuring high quality design and maintenance, and optimizing resources by incorporating multi-generational and multi-use amenities and facilities. Incorporation of innovative universal design and continued conversations with the community will be critical to resolve and prevent any barriers7 to our community’s enjoyment of the City parks, recreation amenities, public art, and programs. The Plan Update also identifies the need for park activation and building community through site planning and provision of community gathering space and associated infrastructure (i.e., gazebo, stage, improved access); supporting and facilitating community events; incorporation of public art and cultural expression; and dynamic programming to address multi -generational and multi- ability needs of our community. 7 Potential barriers may include, and are not limited to, ability, skill level, sense of safety, monetary limitations, knowledge and/or interest in programming and/or recreational activity. Item 19 Packet Page 162 Implementation of the Plan Update would be funded by development impact fees, the general fund, grants, revenues from services, provided, and picnic and facility rentals. Potential external funding sources could include grants; “friends of parks” organization(s); corporate sponsorships; crowdfunding; partnerships with other agencies; gifts from non-profit foundations; private donations; irrevocable remainder trusts; volunteerism; and fundraisers. The Plan update identifies rough lifecycle costs for key amenities, while more aspirational projects such as multi- generational center would require a specific cost and financing assessment due to the potential variables that affect construction, operation, and maintenance costs. Policy Context The recommendations of the Plan Update support and advance many of the goals, objectives policies and programs of both the City’s General Plan, Active Transportation Plan, and Climate Action Plan for Community Recovery. The development and enhancement of accessible parks and facilities in the City would reduce vehicle miles traveled (VMT) and related greenhouse gas emissions. Redevelopment of parks and facilities would facilitate carbon-neutrality and provide an opportunity to educate and showcase evolving technology. Implementation of the Plan Update would advance goals and policies of the Land Use Element, including neighborhood connectivity and enhancement (Policies 2.2.4 and 2.2.6); provision and enhancement of parks within neighborhoods (Policy 2.3.1); and increasing green space in the Downtown (Policy 4.11). Public Engagement Chapter 3 of the Plan Update (What We Heard) summarizes the extensive public engagement conducted over the past three years pursuant to the Plan Update’s Community Engagement Plan, starting with foundational stakeholder interviews in April 2018. Throughout the summer of 2018, in order to reach our community, City staff conducted over 25 “pop-up” events with the Parks and Recreation “Bright Ideas” bicycle to reach and connect with San Luis Obispo residents and visitors at parks, facilities, programs, and events. During these pop-ups, the public had an opportunity to provide comments on portable white boards and comment cards and take photos with the “Bright Ideas” bicycle for sharing on the Parks and Recreation Instagram account. A statistically valid Needs Assessment Survey was conducted August to October 2018, with a total of 507 respondents. Public Workshops and forums included the “Bright Ideas” Public Workshop in September 2018 to gain additional input from the community regarding existing parks and facilities and the future of parks and recreation in San Luis Obispo. A PRC Workshop Series was held in January, February, and March of 2019, which consisted of focused discussions and public input related to the community’s values and priorities, unmet needs, and hopes and dreams. Community Needs Assessment report includes: ▪ Demographic characteristics and population trends of the community; ▪ Description of existing park system and comparison to benchmark cities; ▪ Overview of recreational trends and preferences in the U.S. and in the region; ▪ Summary and evaluation of existing amenities and programs; and ▪ Summary of themes heard during community engagement activities and the community preferences reflected in the statistically- valid survey. Item 19 Packet Page 163 Following the Workshop Series, a Community Needs Assessment report prepared by the consultant team was presented to the PRC and the public in May 2019, and a Community Needs Assessment Workshop was held in June 2019. A Park Improvement Priorities Workshop was held with the PRC in September 2019. Through the remainder of 2019 and 2020, the public had an opportunity to attend PRC meetings, where information was presented for public response and direction from the PRC, including draft themes, goals, and policies; lifecycle costs; and the ongoing feedback and questions provided by the public. The Public Draft Plan was introduced to the PRC on March 3, 2021 and presented to the Active Transportation Committee (ATC) on March 18, 2021. The ATC unanimously moved to recommend adoption of the Plan Update, with recommendations that were supported by the PRC, and will be presented to the Planning Commission in May 2021. ATC recommendations focused on a stronger connection to the Active Transportation Plan, and improved access to and through the Sinsheimer Park area, and support for policies that facilitate incorporation of infrastructure at parks and facilities that support sustainable transportation. On March 25, 2021, a Public Draft Plan Update Public Workshop was held via Zoom. The Workshop included a presentation on the Plan Update, and the community was invited an encouraged to provide feedback via poll questions conducted during the workshop, use of the “chat” function, and Open City Hall. The results of the ATC public meeting and public workshop are summarized in the April 5, 2021 PRC Agenda Report.8 Online community engagement continues to be fostered by information updates on City social media, the project website, direct communications with staff, and the Open City Hall website. CONCURRENCE Over the past three years, the PRC has provided valuable input on the Plan Update. The PRC will consider a recommendation of the Public Draft Plan Update at a Special Meeting on May 12, 2021. The Planning Commission will consider a recommendation to the City Council on the Public Draft Plan on May 26, 2021. The recommendations of the ATC, PRC, and Planning Commission will be presented to the City Council on July 6, 2021. The Administrative Draft Plan Update was provided for internal review by several City departments, including Community Development, Public Works, City Administration, Utilities. The Diversity, Equity, and Inclusion Committee provided valuable review and input on the Administrative Draft Plan Update. In addition, the Plan Update was coordinated with the City Transportation Division and the Office of Sustainability to ensure the document supports and advances the goals, policies, and programs of the Active Transportation Plan and Climate Action Plan. Other community groups have helped shape the Plan Update including Arts Council, American Youth Soccer Organization, Cal Poly (special thanks to NR 418 class, 2018), Central Coast Concerned Mountain Bikers, Central Coast Soccer, Friends of SLO City Dog Parks; Downtown SLO, History Center of San Luis Obispo County, Jack House Committee, Land Conservancy of SLO County, San Luis Coastal Unified School District, San Luis Obispo Museum of Art, SLO 8 Parks and Recreation Commission agenda report, dated April 5, 2021, available here. Item 19 Packet Page 164 Baseball, SLO Pickleball Club, SLO Railroad Museum, SLO REP Theatre, SLO Rugby, SLO Senior Center, SLO Soccer Club, SLO Women’s Soccer Club, YMCA, and many other individuals. STUDY SESSION FRAMEWORK FOR FEEDBACK TO STAFF At this study session, Council will receive a summary presentation of this report, hear input from the public, and provide questions and feedback to staff to guide development of the Final Plan. In the years that this work effort has been underway hundreds of inputs have been provided by the community on their hopes and dreams for recreation and parks in San Luis Obispo – and they have been as diverse and unique as the individuals providing them. While tempting to give Council 100s of specific questions to reflect this kaleidoscope of interests, in providing feedback to staff, below are a series of very broad and general questions that Council may want to use to guide its discussion. 1. Does the Parks and Recreation Blueprint plan represent the needs of the community? 2. Is there more Chapter 4 (Goals and Policies) Themes, Goals, and Policies can provide to further represent, support, and advance the City’s core values of civility, sustainability, diversity, inclusivity, regionalism, partnership, and resiliency? 3. Does the Parks and Recreation Blueprint Chapter 5 (Implementation) appropriately prioritize future amenities and projects in the following timeframes: a. Near-term (0-5 year) b. Mid-term (5-10 year) c. Long-term (10-20 year) 4. Is there more the Draft Plan can provide to further incorporate and advance Diversity, Equity, and Inclusion? ENVIRONMENTAL REVIEW This study session does not constitute a “Project” under CEQA Guidelines Sec. 15378. However, a CEQA Initial Study / Negative Declaration has been prepared f or the Plan and is provided for public review concurrent with release of the Public Draft Plan (Attachment B). FISCAL IMPACT Budgeted: No Budget Year: 2017-19 Funding Identified: No Item 19 Packet Page 165 Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Total This study session itself does not have any direct fiscal impact since no formal action will be taken. If adopted, the fiscal impact associated with fully implementing the Public Draft Plan is significant and will extend over twenty years, requiring substantial funding commitments over multiple financial plans as well as exploration of grants, development fees and other outside funding sources. Since the Plan Update is a programmatic document, it provides only a planning level assessment of project costs, with estimates provided for line-item amenity features (i.e., seating, turf area, nets, etc.). Any larger scale projects identified in the programmatic document such as a multi-generational community center or additional aquatics center would require specific feasibility and financial assessments to determine cost based on a variety of factors such as location, size, and other specific features. Ultimately, each individual project and program expenditure would be considered and prioritized by the City Council as part of the City’s two- year financial planning process. The Council included $160,000 in the 2017-2019 Financial Plan for the Plan Update. $145,000 was allocated for Contract Services, which includes $ 135,000 for consultant assistance with the Community Needs Assessment and Plan Update, and a $10,000 contingency. $113,614 has been spent on consultant services to date. $10,000 was also allocated for City operating expenditures, such as meeting notifications, outreach direct costs and document production. $5,000 was assigned for an intern to assist with the facility needs assessment. ALTERNATIVES Council could provide feedback in areas other than the example questions listed above. Attachments: a - COUNCIL READING FILE - Parks & Recreation Plan and General Plan Element Update a - COUNCIL READING FILE - Plan Update Appendix b - COUNCIL READING FILE - Initial Study Negative Declaration Item 19 Packet Page 166